SAP FICO

CONFIGURATION
 TOPICS FOR DISCUSSION
1.Assign Chart of accounts to company code.
2.Define Account group.
3.Define retained earnings account.
4.Define Tolerance group for G/L Accounts .
5.Define Tolerance group for Employees.
6.Enter Global Parameters.
 Account groups
1.Account groups is the classification of the items which will
be a part of either P&L Account or Balance sheet.
2.Assigning number ranges to each of the account group is an
important activity undertaken in this step.
2.Account grouping screen will consist of the following -
COA ACCT GR DESCRIPTION FROM TO
TATS SC Share Capital 100000 100100
TATS RS Reserves surplus 100101 100200

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 Account groups
CA 200000-200200.
CASH A/C 200000
ICICI BANK A/C 200001
HDFC BANK A/C 200002
INVENTORY
RM
0000100000

4K
 Define Retained Earnings A/C
• The Net profit obtained in the Profit and loss account will be
transferred to Reserves and Surplus of Balance sheet.
•The transfer of Net profit to the Balance sheet takes place
through retained earnings.
•In this step P&L Account will be linked to Retained earnings
account. The screen will show the following fields –
P&L STATEMENT ACCOUNT
X 100101(Taken from Account
Group Reserves Surplus)
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DEFINE TOLERANCE GROUPS FOR
G/L ACCOUNTS
• General Ledger tolerance is mandatory in SAP which is
applicable to Receipts & Payments.
• Before knowing about Tolerance group, we have
understand the term open item management.
• Any item which is due for payment is considered as open
item in SAP. E.g Outstanding expenses, Vendors,
Customers etc.
• In SAP Tolerance means Payment Difference. It can be
“Amount tolerance” or “Percentage tolerance”. It can be
debit or credit. 6
 DEFINE TOLERANCE GROUPS FOR
G/L ACCOUNTS
Tolerance Group Amount Tolerance Percent Tolerance

A USD 100

B - 2%

C 0 0

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 DEFINE TOLERANCE GROUPS FOR
G/L ACCOUNTS
• Create Tolerance group and give the tolerance amount or
Percentage or both.
• Tolerance group will be specified in the General ledger
A/C. E.g Outstanding Salaries USD 50000, Outstanding
Rent USD 30000 and Outstanding Commission USD
100005.
• Suppose in the General Ledger account for Outstanding
expenses we assigned Tolerance group A. If we make a
payment of USD 100000 then the system undertakes a
check in the following manner-
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 DEFINE TOLERANCE GROUPS FOR
G/L ACCOUNTS
• How much is payable USD 100010.
• How much is paid USD 100000.
• Difference USD 10.
• If the difference is within the Tolerance group amount ( i.e
USD 100 for “A” Tolerance. The difference will be
transferred to sundry balances written off account and the
item will be cleared.

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 DEFINE TOLERANCE GROUPS FOR
G/L ACCOUNTS
• If the number of General ledger accounts are more then
assigning the tolerance group to all the G/L’s is a difficult
a task. Hence we leave the Tolerance group blank.
COMPANY TOLERANCE TOLERANCE TOLERANCE
CODE GROUP AMOUNT PERCENTAGE
TATS BLANK 0 0
• When we create G/L Account the Tolerance group field
will be left blank. System takes it as a blank Tolerance
group which is assigned to G/L Account.
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 DEFINE TOLERANCE GROUP FOR
EMPLOYEES
User wise upper limits for posting
 Tol Group
A B C
100000 100000 10000000 Amount per document
100000 100000 10000000 Amount per open item
0 5 10 Cash Discount
0 0 0 Payment Differences.
We have 1000 users – we have to create 1000 scenarios which
will be a lengthy process.
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 DEFINE TOLERANCE GROUP FOR
EMPLOYEES
Accounts Dept:
City office cashier
Factory cashier These 4 employees will linked to A
Branch cashier
Account 1
Account 2 These 2 employees linked to
Deputy Manager Accounts B
Manager Accounts
DGM Accounts These 2 employees linked to C
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 DEFINE TOLERANCE GROUP FOR EMPLOYEES
• These tolerances groups will be assigned a user ID and
password by a basis consultant.
• However in the training environment three levels and
different users are not there hence we will not activate the
Tolerance group.

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 DEFINE DOCUMENT TYPES
Document Type
•The document type classifies the Accounting documents.
Document type specifies whether a particular document
belongs to general ledger, Vendors, Customers or assets.
•It helps in assigning the number range to the associated
documents.
SALARIES A/C DR 200000
TO SBI BANK A/C 200000
1000 DOCUMENTS

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