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SAP Integration of FICO with Other Modules

Fri, 09 Jan 2009 14:04:00 +0000

What are the steps for integration of FICO with other modules SD, MM etc. ?

Some basic information :

FI-MM: The integration between FI-MM happens in T-code OBYC.

1. When PO is created :

---- No Entry -----

2. When GR is posted

Inventory Account dr (Transaction Key BSX in OBYC)
To GRIR account (T.Key WRX in T-code OBYC)

3. When Invoice is posted

GRIR account Dr.
Vendor account Cr.

4. Payment made to Vendor

Vendor A/c Dr
To Bank Clearing A/c Cr.

Points to know : Movement Types, Assignment of Movement types to T-keys (T-code OMJJ), Value string (I also need some information on this) , OMWN and OMWB transactions.


There is a close integration b/w FI & MM, actually document flows from MM to FI in the following areas such as,

1. Movement Types:

Used to enable the system to find the predefined posting rules determining how the accounts of financial accounting system are to be posted & to update the stock fields in the matrl master data.(Goods Receipt, Goods Issue, etc)

2. Valuation Class:

Assignment of material to grp of gl account, used to determine the gl accounts that are updated as a result of goods movement.

3. Transaction/Event key:

Used to control the storage or filing of documents & assignment of documents.Used to differeniate b/w various transactions such as goods movement tht occur in inventory.

4. Material Type:

Each material should assign mtrl type in mtrl master record used to update whether changes made in qty are updated in material master record & change in value also updated in stock account.

FI-SD Integration: The integration is done in T-code VKOA

1. Sales Order Created

---No Entry---

2. PGI done (Goods issue)

Cost of Goods Sold Dr (Configured in OBYC GBB T-Key)
To Inventory Account

3. Billing document released to Accounting

Customer Account Dr.
To Sales Revenue Account (ERL T-key in Pricing procedure)

Note : The GL account is assigned to this ERL in VKOA

4. Payment Received

Bank Clearing A/c Dr
Customer A/c Cr.

Points to Know : Good to understand the pricing procedure and how the different transaction keys are used like ERL, ERS etc.

FAQs for SAP Financial

Fri, 09 Jan 2009 14:04:00 +0000

Q1-What are adjustment postings and its use? Give and paths if possible?

Answer: fb50,f-02 and others could be used for adjustments. These adjustments are to correct any financial representation that has already been booked into the accounts.

Q2-Suppose I have purchased goods of 10 units(raw materials or semi-finished goods) worth Rs10000 from vendor A (suppose) and also made payment for the same. Now during the manufacturing process, it was observed that 3 units are defective, now my question is how do we deal with the defective units in SAP as I have already made payment for the 10 units(i.e Rs10000).

Answer: If you have a GRN against these materials, then the same can be return delivered. An appropriate movement type needs to be configured for the same. As for the payment, raise a credit note on the vendor.

* Using Debit Memo you can get the money for defective 3 units. *-- Gnan Eswari

Q.3-We always copy company code or we can create manually also? If possible give reasons also.

Answer: There are loads of tables that get copied over when copying co codes. This might be incomplete in a manual copy, and hence the manual route is not advisable.

Q.4-In case of APP, when bank master data updated?

Q.5-Suppose in 2004 I have depreciation key 'AB&in 2005 depreciation key I have changed to"CD". In what way my balances would be affected like balances of depreciation,accumulated depreciation,assets etc.

Answer: The difference in the depreciation that is posted already, and what should be posted with historical effect will be posted in the current accounting period.

Q.6 How many chart of accounts can be assigned to company code we can assign company code to chart of account through OB62? Now my question is in what way we can assign three types of chart of account to company code in one transaction code (I might be wrong plz correct me)

Answer: Three, although the group and country chart of accounts are optional. The group chart of accounts is assigned to the
operational chart of accounts, and the only mandatory CoA is the Operational CoA.

Q.7 How many financial statement versions can be assigned to co.code?

Answer: As many FSVs as you want can be assigned to the co code i.e. 1:n as of Co Code: FSV.

I have created Company Code and all other configuration related to the CCode. Also in MM I have created purchase order, created vendor, material etc. I couldn't activate the PO due to the following error messages in red:


I have assigned controlling area to company code and I could see the controlling area in existance via master file and gl verification.

1. MAINTAIN TOLERANCE LIMITS FOR TOLERANCE KEY PE ACCOUNT ASSIGNMENT ----> Please follow this link --> SPRO ---> MM---> Purchasing --> Purchase Order --> Set Tolerance limits for price variance --> Here you have to set for Tolerance keys PE and SE. Just copy them from std co. code.


In Controlling --> General Controlling --> Maintain Controlling Area --> Maintain Controlling Area --> Activate Components/Control Indicators --> You need to check if you want to activate the order management/activity based costing/commitment management etc.

SAP Questionnaire with Answers for SAP FICO

Fri, 09 Jan 2009 14:03:00 +0000

What is the difference between company and company code?A company is the organizational unit used in the legal consolidation module to roll up financial statements of several company codes.The Company Code is the smallest organizational ! unit for which a complete self-contained set of accounts can be drawn up for purposes of external reporting. How many chart of accounts can be attached to a company code?One or more Operative Chart of Accounts can be assigned to a company code. A COA must be aasigned to a company code. This COA is the operative COA and is used in both FI and CO. One Chart of Account can be assigned to many Company codes i.e., Multiple company codes can either share the same or have separate COA. But a company code (Country specific Company code or International Company code) can have a country specific COA also along with Operative COA. The link between the regular COA and the country COA appears in the alternate number field of the G/L master record. Eg: If a company's subdidiaries are located in both US & Mexico. We need to configure 2 Company codes - one for US and another for Mexico,for eg U100 and M100. The same way we create 2 COA's one for US & one for Mexico, USCA and MXCA. Mexico has different govt reporting requirements than the US so we will need to define a company code specific to Country Mexico and also create a country specific COA to be used, in addition to normal COA. In tcode OBY6(Comp Code Global Parameters) of CC M100 we define normal COA i.e.,USCA in Chart of Accounts field and MXCA in Country Chart/Accts field. What are substitutions and validations? What is the precedent?Validations are used to check settings and return a message if the prerequisite check condition is met.Substitutions are similar to validations; they actually replace and fill in field values behind the scenes without the user’s knowledge unlike validations that create on-screen msgs to the user. What is a controlling area?The Controlling Area is the central organizational unit within CO module. It is representative of a contained Cost Accounting envt where costs and revenues can be managed. Define relationship between controlling area and company code?A controlling area may include one or more company codes which must use the same operative chart of accounts as the controlling area. A Controlling Area can contain multiple company code assignments but a single company code can be assigned to only one controlling area. What is a fiscal year variant?Fiscal Year is a period of 12 months and SAP provides 4 special periods to posting adjustment Entries. Fiscal year determines posting periods. Posting periods are used to assign business transactions. Fiscal year may be year dependent or year independent. What are special periods used for?The Special periods in a fiscal year variant can be used for things like posting audit or tax adjustments to a closed fiscal year. What do you mean by year dependent in fiscal year variants?Year Dependent: the financial year is same as calendar year. Starting from 1st Jan to 31st Dec (where posting periods and the calendar months are equal)Year Independent: the financial year is different from calendar year Starting from 1st April to 31st March (where the posting period months are not equal to calendar year months) What are shortened fiscal year? When are they used?Shortened Fiscal Year: a financial year, which has less than 12 periods. What are posting periods?The Posting period variant controls which posting periods, both normal and special, are open for each company code. It is possible to have a different posting period variant for each company code in the organization. The posting period is independent of the fiscal year variant. What are document types and what are they used for?Document type is the identifier of differentt account transactions like SA for G/L,AA for Asset Accounting etc.The doc. Types controls things like type of the account that can be posted to, the number range assigned to it, and required doc he[...]

SAF FICO Frequently Asked Questions I

Fri, 09 Jan 2009 14:03:00 +0000

1. Where to assign activity type in cost centers? OR how to link cost centers & activity types? >> There is no direct assignment. You plan the output for a cost center first in kp26. Then you've to plan the value of that cost center which you budget for a period in kp06. Planned Activity expenditure / Planned Actvty qty gives yoa planned act rate which you can use to valuate your activity confirmations in mfg ordrs. You can also define your own prices,but you have to run the price revaluation if you want to revaluate your actual activity prices. 2. For stat. key figure what is the significance of sender & receiver cost elements & cost centers? >> Stat key fig are not real account assignments. In simple traditionl terms it is the base to allocate or define praportions with which the cost is allocated. SKFs are used to calculate the debit on a receiver object. These values can be used for assessing common costs which are used by all the other cost centers. 3. How SKF works .. Kindly give me T Codes Also. >> You create & plan SKF.Create using KK01 & PLAN the parameters of SKF in KP46 SAP Tips by: Dhiraj 1. Does any one know what is Software life cycle, it was a question asked in an interview. 2. In GL master we have a option "Balance in local currency" and "Account currency". What does it mean? 3. In movement type(MM), what is value & quantity string I know it updates values and quantities in GL with mix of valuvation class, transaction key modifier and GL A/c. But how does it work when doing a mvt type? 4. In FI when doing Special GL transaction what determines the fields statues of the screen and why do we have so many screens followed by it. Is it determined by Posting Keys? is it to determine Account type for which we are using the Special GL and debit and credit? Q: Software Life Cycle, Ans: it is nothing but Road Map - five phases like, Project Preparation, Blue print, Realisation, Final preparation and Go-live support. Q: In GL master we have a option "Balance in local currency" and "Account currency".What does it mean? Ans: Account currency is that the GL account in which currency do you want to maintain. if you decided that you want maintain in company code currency, you can post any currency in that account.If not, you want to maintain separate currency for that GL then exchange rate difference will come because the conversion rate. Balance in local currency - some GL account can't be maintain on open item basis and can't in foreign currency like clearing account and discount account etc., in such case you can assign this indicator to show the balance in local currency. Q. In movement type(MM), what is value & quantity string I know it updates values and quantities in GL with mix of valuvation class, transaction key modifier and GL A/c. But how does it work when doing a mvt type? Ans: Basically, the system does not know which GL has to be updated with what. here, we are giving a direction to the system to update the data. What you said is correct, the system will update the value and qty in the material master. You would have seen some more fields also, like Movement indicator, consumption, value string and transaction event key etc., While creating a PO, the system will take the Movement type as a base, with MT, it will identify the MI(movement indicator - used to define whether it is goods movement for production order, purchase order, delivery note etc), and it will identify the consumption,( like it is assets, or consumption or sales order) and it will identify the value string ( it is must to assigned to movement type, through allocation of value string to movement type, system will automatically identify the GL ) and it will post the entry (dr/cr)in the GL based on the transaction and event key figure which is used to determine the debit and credit entry of a GL[...]

SAF FICO Frequently Asked Questions I

Fri, 09 Jan 2009 14:02:00 +0000

1. Whether any FI doccument will be created during PO(Purchase order)? If please mention the entry also. 2. What factors differentiates from one dunning level and other dunning level?3. APP There will be many banks in a house bank. If the payment should be maid from particular bank GL account. Where it is need to configured.4. What are various types of servers in SAP R/35. Can anybody explain me FI-MM explain in detail i. movement typesii. account classiii. material types6. Maximum no. of dunning levels are created?7. In how many ways APP is configured8. What is diff between AAM, Recurring entries, Sample doccument? Find here with the answers for your questions 1.Whether any FI document will be created during PO(Purchase order)?If pl mention the entry also? Ans: There is no document that is created in FI side during PO. But in controlling there can be a commitment posting to a Cost Center. The offsetting entry is posted at the time of GR. 2.What factors differentiates from one dunning level and other dunning level Ans: The most important thing that differentiates the dunning levels are the dunning texts. The dunning text defines the urgency of the dunning notice. The other things can be the dunning charges, minimum & maximum amounts etc. 3.APP There will be many banks in a house bank. If the payment should be maid from particular bank GL account. Where it is configured. Ans: There can be several accounts in the same house bank. We should assign the GL accounts exclusively at the time of creating the Bank master data and the bank accounts. Accordingly we can do the bank determination in FBZP for the individual banks and the corresponding sub accounts. Tr code for Defining bank : FI12. 4.What are various types of servers in SAP R/3? Ans: The Typical SAP landscape looks something like figure 1.4 below:5.can anybody explain me FI-MM explain in detail i. Movement types: Classification key indicating the type of material movement (for example, goods receipt, goods issue, physical stock transfer). The movement type enables the system to find predefined posting rules determining how the accounts of the financial accounting system (stock and consumption accounts) are to be posted and how the stock fields in the material master record are to be updated. ii. Valuation class Assignment of a material to a group of G/L accounts Along with other factors, the valuation class determines the G/L accounts that are updated as a result of a valuation-relevant transaction or event, such as a goods movement. The valuation class makes it possible to: - Post the stock values of materials of the same material type to different G/L accounts- Post the stock values of materials of different material types to the same G/L account iii. Transaction/Event Key Key allowing the user to differentiate between the various transactions and events (such as physical inventory transactions and goods movements) that occur within the field of inventory management. The transaction/event type controls the filing/storage of documents and the assignment of document numbers. iv. Material Type Groups together materials with the same basic attributes, for example, raw materials, semifinished products, or finished products. When creating a material master record, you must assign the material to a material type. The material type you choose determines: - Whether the material is intended for a specific purpose, for example, as a configurablematerial or process material- Whether the material number can be assigned internally or externally- The number range from which the material number is drawn- Which screens appear and in what sequence- Which user department data you may enter- What procurement type the material has; that is, whether it is manufactured in-house orprocured externally, or both Together with the plant, the material type determines the material's inventory management requirement, that is: - Whether changes in[...]


Fri, 09 Jan 2009 14:02:00 +0000

1. There is "company" field in the Company Code global settings. The R/3 help says that it is being used for consolidation. We can use Group Chart of account to do the same. What is the significance of this field?What is different between company & company code? 2. When we copy the COA, only one Fin Stat Version is being copied. A COA can have many Fin Stat Version. Why copying of COA allows only one Fin St Ver? 3. What are the information that are not copied to new company code when we copy company code? 4. Whether one group chart of account can be assigned to 2 Operational charts. For Eg. INTA and INTB is being used by group of company as OCA. Whether GCA GRP can be assigned to INTA and INTB? 1A). Company is an organizational unit which is generally used in the legal consolidation to roll up financial statements of several company codes. A company can include one or more company codes. If we are going for Consolidation , we need to enter the 6 character alphanumeric company identifier that relates to this company code. Company Codes within a Company must use the same chart of accounts and fiscal year. And for consolidation purpose we use Group COA wherein we link the Operating COA thru entering the GL account no. of the Group COA in the GL Account of the Operating COA. 2A). A financial statement version corresponds to the chart of accounts and wherein Individual (operational) accounts are assigned to the corresponding FS item on the lowest level of this version. But as for the rollup of Accounts is not possible in all the FSV which can be copied, n rather can update manually n create multiple FSVs if necessary depending on the Financial Statements which are necessary for the Organisation. 3A). All the Organizational units (Global Data) for a company code will b copied to new company code upon using the copy function except for the transactional data. 4A). Yes, Group COA can be assigned i.e., the GL A/c.No. is linked to the GL Accounts of the both Operating COA . That means Group COA consists of Unique set of Accounts which can be linked to Op.COA –1 and Op.COA –2. SAP FI/CO Tips by: Sneha Reddy Ans: Q.No.1. In the SAP system, consolidation functions in financial accounting are based on companies. A company can comprise one or more company codes. for example: Company A have 4 company codes which is existing in different state and / or country. When Company A wants to consolidated the accounts, it will give the common list of accounts which in turn called group chart of accounts. Group chart of account is used to define/ list the GL account uniformly for all company codes. Ans: Q.No.2. In SAP R/3 system, will allow only one financial statement version for single COA which you need to assign the same while copying the COA. T.code OBY7 Ans: Q.No.3. When you want to create FYV, PPV, COA etc for new company code which is as same as existing company code, then you can copy all the information from the source company code to the target company else whatever is required as per the new company code requirement you can only copy the same, rest you can create as per the requirement. for example Fiscal year for new company code may be shortented fiscal year which is differ from the existing company code. In this case, fiscal year for new company code you have to create and assign it to company code. Ans: Q.No.4. Operational chart of accounts is something differ from the Group chart of accounts but Group chart of account can be assigned to Operating chart of account 1 and 2 through GL account no. Operating chart of accounts: The operating chart of accounts contains the GL accounts that you use for posting in your company code during daily activities. Financial accounting and controlling both use this chart of accounts. You have to assign an operating chart of account to a company code. Group chart of accounts: The group chart of accounts contains the GL accounts that are used by the enti[...]

SAP FI Errors and Probable Solutions

Fri, 09 Jan 2009 14:01:00 +0000

These are some of the issue for which probable solutions are given, hope they are helpful : Scenario 1:I have configured FBZP, Fi12 for house bank. But when I am doing payment run in F110 I am getting following error: Company codes X1YZ/X1YZ do not appear in proposal 05/03/2006 REMI2. DiagnosisNo data exists for the specified paying company code X1YZ and the specified sending company code X1YZ in payment proposal 05/03/2006 REMI2. System responseThe payment proposal cannot be edited. ProcedureCheck the flow trace and payment proposal list in order to determine why the specified company codes are not contained in the proposal Solution :* That’s generic error for payment run, check whether there are any due items as on date (tcode fbl1n). You can also change the baseline date there and rerun it. if you still get same error.. Check the proposal log, you will find the reason. * Try to see first whether any open items exist. By using FBL1N. Scenario 2:How to make the payment through automatic payment program, through F-110 .What are the prerequisites? Solution :For Down payments to be paid using APP we have create a Down Payment request F-47. Scenario 3:While doing APP, after, " the payment proposal has been created message " if edit proposal is selected, I am getting the error as "Company code ABC/ABC do no appear in the proposal " Solution :This type of error comes when your Payment proposal doesn't have any items to process. Check the parameters and ensure invoices are due as on run date. Scenario 4 :While posting customer invoice (FB70) why system asks for G/L account? As per accounting rules customer is debited and Customer reconciliation a/c is credited that ends double entry book keeping rule. Why one more G/L account on top of Recon a/c, which is posted automatically? Solution :* Entry gets posted to Customer a/c through reconciliation account. You have to give a GL a/c for revenue. Your entry would beCustomer (Reconciliation a/c) DrTo Revenue Cr * Reconciliation is a fictious entry so you cannot consider as an entry to be entered by the user. This rule is derived from the fact that 'we cannot enter/post directly to RECON account'. That is why system needs a GL account to make the account balance as zero. Manual entry could be: Customer a/c DrTo Domestic Sales a/c(Sales invoiced posted) Recon entry is automatically made once you post this entry since you have configured your RECON in the IMG. Scenario 5 :I am unable to figure out how to attach my GL Accounts to my company code [copied chart of accounts, have my own company code, assigned my company code to the chart of accounts]. Solution :You can attach the GL Accounts by just filling the details in the company code segment of the GL A/c. Hence you can use that gl a/c for your co code.But that would be individually creating the accounts. Right?? How about creating all accounts at one shot. Create in FS00 Scenario 6 :Difference between Standard Hierarchy and Alternate Hierarchy. Solution :Standard Hierarchy is basic structure of company but alternative hierarchy is just for reporting or temporary usage. Scenario 7:I have created depreciation keys (diminishing balance) and assigned to asset classes respectively. But at the time of asset master creation the system ask for Useful Life of the asset while my understanding is that in diminishing balance method there is useful life, just percentage is defined. Solution :Useful life is required for depreciation change. Normally a company with WDV depreciation may want to write off its assets which have crossed their useful life in 2 or 3 installments. This is achieved by depreciation change, where after useful life, a new method takes over. Scenario 8 :I have some conceptual problem in Internal Order. Solution :Internal order can only take a statistical posting & cost centre shall take a true posting when the relevant internal ord[...]


Fri, 09 Jan 2009 14:00:00 +0000

1. Since the line item display takes up additional system resources, you should only use it if there is no other way of looking at the line items. So, you should not activate the line item display for the following accounts (Note: we can have more than one correct sentence. Please select the sentences you think they are correct): a) [ ] P+L Statement.b) [ ] Reconciliation.c) [ ] Revenue.d) [ ] Material Stock.e) [ ] Tax. 2. Consider the following statements: 2.1. Accounts with open item management must have line item display activated.2.2. You can activate or deactivate open item management everytime, even if the account hasnÂ’t a zero balance.2.3. You can select both local and foreign currencies as account currency.2.4. If the account is the local currency, the account can only be posted to this currency.2.5. When using the “Only Balances in Local Currency” indicator in the master data record, transaction figures are only managed for amounts translated into local currency. Which of the above statements are true (Note: we can have more than one correct sentence. Please select the sentences you think they are correct)?a) [ ] 2.1.b) [ ] 2.2.c) [ ] 2.3.d) [ ] 2.4.e) [ ] 2.5. 3. True or false? 3.1. The “Only Balances in Local Currency” indicator must not be set in reconciliation accounts for customers or vendors.a) [ ] True. b) [ ] False. 3.2. The “Only Balances in Local Currency” indicator is usually set in balance sheet accounts that are not managed in foreign currencies and not managed on an open item basis.a) [ ] True. b) [ ] False. 3.3. Accounts with a foreign currency as an account currency can be posted to any currency.a) [ ] True. b) [ ] False. 3.4. You can use a group chart of accounts for internal purposes.a) [ ] True. b) [ ] False. 3.5. The usage of a financial statement version for the group chart of accounts is optional.a) [ ] True. b) [ ] False. 4. What is the disadvantage of using the group chart of accounts (Please choose the correct sentence)? a) [ ] Because changes to existing G/L Accounts are effective as soon as they have been saved and could have extensive consequences.b) [ ] Because accounts with the account currency as local currency can only be posted to this local currency.c) [ ] Because the company codes use different operational chart of accounts, you cannot carry out cross-company code controlling.d) [ ] Because the group chart of accounts must be assigned to each operational chart of accounts.e) [ ] Because you must enter the group account number in the chart of acounts segment of the operational account. 5. Consider the following statements: 5.1. You cannot use the country chart of accounts if you desire to use the cross-company code controlling.5.2. The disadvantage of using country chart of accounts is the accounting clerks who may be familiar with the country chart of accounts first have to get used to using the operational chart of accounts.5.3. Reconciliation accounts are updated on a daily basis. Which of them are false (Please choose the correct sentence)? a) [ ] 5.1 and 5.2.b) [ ] 5.1 and 5.3.c) [ ] 5.2 and 5.3.d) [ ] all of them.e) [ ] none of them. 6. Which are the segments of the SD view of the customer account master data (Note: we can have more than one correct sentence. Please select the sentences you think they are correct)? a) [ ] Client.b) [ ] Company Code.c) [ ] Controlling Area.d) [ ] Sales Area.e) [ ] Purchasing Organization. 7. Which are the segments of the MM view of the customer account master data (Note: we can have more than one correct sentence. Please select the sentences you think they are correct)? a) [ ] Client.b) [ ] Company Code.c) [ ] Controlling Area.d) [ ] Sales Area.e) [ ] Purchasing Organization. 8. What is the segment that makes complete both customer and vendor accounts (Please choose the correct sente[...]


Fri, 09 Jan 2009 13:59:00 +0000

1. About evolution in the world of business, we can affirmate that (Please choose the correct sentence): a) [ ] The internet revolution could turn available to companies the use of ERP functionality.b) [ ] The next generation of “new dimension” products appeared taking functionality out of the company, to bring value through extending the Internet Revolution.c) [ ] The internet has driven to a collaborative environment where value is created through collaboration within business comunities.d) [ ] In the first the companies were looking at Cost reduction and efficiency through integration of business comunities. 2. About the definition of ERP and e-business functionalities, we can say that (Note: we can have more than one correct sentence. Please select the sentences you think they are correct): a) [ ] ERP offers enterprise centric functionality (general ledger, payroll, order entry) to integrate core, internal processes.b) [ ] ERP is mySAP Financials and mySAP HR.c) [ ] ERP is SAP R/3, while e-business is [ ] About Business Model, ERP can be considered as enterprise centric and e-business, as extended and collaborative.e) [ ] About Architecture, ERP can be considered as an integrated system and e-business, as an integrated system and an open integration platform.f) [ ] About Processes, ERP can have them integrated, core within enterprises and collaborative, beyond company boundaries. 3. What is a SAP Business Object (Please choose the correct sentence)? a) [ ] It is all the transaction data generated via transactions.b) [ ] It is the instancied class of the Class Builder.c) [ ] It is composed of tables that are related in a business context, including the related appplication programs and it is maintained in the Class Repository.d) [ ] It is the representation of a central business object in the real world, such as an employee, sales order, purchase requisition, invoice and so on.e) [ ] It is a sequence of dialog steps that are consistent in a business context and that belong together logically. 4. About BAPI (Business Application Programming Interface), what is true (Note: we can have more than one correct sentence. Please select the sentences you think they are correct)? a) [ ] It is a well-defined interface providing access to processes and data of business application systems.b) [ ] BAPIs offer a stable, standardized interface for integrating third-party applications and components in the Business Framework.c) [ ] A BAPI is assigned to one and only one business object.d) [ ] In the R/3 Enterprise version (4.7) we can use BAPI to create an internal order inside a customized ABAP program.e) [ ] A business object in the Business Object Repository (BOR) can have many methods from which one or several are implemented as BAPIs. 5. What can we say about ALE (Application Link Enabling, Note: we can have more than one correct sentence. Please select the sentences you think they are correct)? a) [ ] Business processes cannot be distributed using ALE.b) [ ] The ALE concept is related to an enterprise structure with areas that have central tasks and areas with tasks that are decentralized.c) [ ] The applications are integrated via a central database.d) [ ] The applications are integrated via the message exchange.e) [ ] The ALE concept supports the implementation and operation of distributed SAP applications. 6. A company code is: a) [ ] an independent accounting entity (the smallest organization element for which a complete self-contained set of accounts can be drawn up).b) [ ] an organizational unit in an enterprise that represents a closed system used for cost accounting purposes.c) [ ] an organizational unit that provides an additional evaluation level for the purpose of segment reporting, for example.d) [ ] a dependent accounting entity, according to Fiscal Year.e) [ ] [...]

SAP FICO Technical Interview Questions II

Fri, 09 Jan 2009 13:58:00 +0000

Questions are answer best of my knowledge, if I am wrong, please correct me..anyone………… 1. How can be or in what way baseline date is important in Automatic Payment Program run? The Baseline date is used to calculate the due date by taking into account the payment terms. On the APP, the baseline date helps to pick the relevant invoices for payment. During the APP run when invoices are pulled into the run, the system checks the ‘Next Payment Date’ before picking the invoices to be paid. 2. Please tell me the procurement cycle how it works? Procurement cycle – a sales order is placed on a requirement made by a customer, after which it is passed on to create a purchase order (this could either happen based on the requirements on the SO, or a planned SO). the value flow gets passed on to FI at the time of goods movement. In the case of SD, the impact on FI happens only at the time of billing. 3. Difference between Depreciation ,Accumulated Depreciation and APC? What is APC? Depreciation – a decrease in the value of an asset due to wear and tearAccumulated Depreciation – the total amount of depreciation calculated on a particular asset.APC – refers to Asset transactions other than depreciation 4. What is GR/IR?What journal entries we should pass for this? The GR/IR – the goods receipt/Invoice Receipt account is used to post to whenever goods that are not yet invoiced have been received or when invoices arrive b4 the the delivery of goods. During the time between the invoice being created and delivery of goods, there can be a timing difference, in order to accommodate this timing difference, a GR/IR account is maintained temporarily to record the flow . 5. What are the accounting entries take place in MM and SD? Value from MM to FI is defined in OBYC…. on the material master the flow of values are assigned on the Costing, acctg, etc tabs where the system helps to post the necessary stock values into the appropriate GL accounts. helps to determine, the GL accounts updated when there is a movement of goods. SD-FI - VKOA 6. Can we assign one Controlling area to two different Company Codes (but the company codes having different fiscal years/different currencies Company code should have same financial year, may have different currencies. You can assign 2 or more company codes to one controlling area as long as the chart of accounts are same. Furthermore, if you have different fiscal year variant in the company code, then make sure that the number of period remain the same. 7. While posting transaction, can we give cost centre / production order at time. Yes it is posiiable , but in such situation cost centre will be real and production order is stastical. If you assign both cost center and Prd Order then since Prod. Order are real co object, Cost center entry would be statistical. 8. Which Master data uploads will be done? The question is not very clear. If you are talking about CO Master data. Then Cost center need to be uploaded. You can use Data Transfer Workbench or write abap for it. 9. Can we run Payment Programe giving ( Hdfc vendor detailes ) City bank in Payment run programe? Yes can be possible , this can resolved through ranking order and bank optimization in FBZP. You use use further selection in proposal paramater, if you would like to filter the open item based on the city 10. What does document header control? Field status. 11. After entering a document can you delete the entry? Can you change the document? Which fields’ can/not is changed? Document header cannont be changed, after posting the document you cannot change. only if you want to change the document the reseversal entry. 12. What is a special GL transaction? The transaction other than A/P and A/R is called the special g/l transaction for ex: Bills of [...]

SAP FICO Technical Interview Questions

Fri, 09 Jan 2009 13:58:00 +0000

1. Tell me about FI Organizational structure?Ans: Client | Operating Concern |Controlling area1 Controlling Area 2 |Co. Code 1 Co. Code 2 |Bus area 1 Bus area2 Bus Area3 Bus Area 4 2. How many Normal and Special periods will be there in fiscal year, why do u use special periods?Ans: 12 Normal posting period and 4 special periods are in the fiscal year which can be used for posting tax and audit adjustments to a closed fiscal year. 3.Where do you open and close periods?Ans: PPV is used to open and close the periods based on a/c types considering GL Accounts. Tr. Code. OB52. 4.What do you enter in Company code Global settings?Ans: 4 digit Alphanumeric key.Name of the companyCityCountryCurrencyLanguageAddress 5.What is document type, and what does it control? Examples.Ans: Document type is nothing vouchers containing line items. Several business transac! tions can be identified within a particular document type.It controls the document number ranges.It controls the Header part of documentIT controls the line item level of the documentHelps filing of physical document 6. What is posting key and what does it control?Ans: These are special classification keys. Two character numerical key it controls the entry of line items.Posting key determines Account type, Debit/credit posting, Field status of transaction. 7. What is field status group, what does it control? Ans: FSG is mandatory field in ! GL Creation. You use this field to define which fields are displayed when you post business transactions to a G/L account.A field may have one of the following statuses.- Suppressed- Display- Optional- Required 8. What is chart of account and how many charts of accounts can be assigned to a company?Ans: Chart of account is a list of all G/L accounts used by one or several company codes. For each G/L account, the chart of accounts contains the account number, account name, and the information that controls how an account functions and how a G/L account is created in a Company code. You have to assign a chart of accounts to each company code. This chart of accounts is the Operating chart of accounts and is used for the daily postings in this company code. You have the following options when using multiple company codes.You can use the same chart of accounts for all company codes If the company codes all have the same requirements for the chart of accounts set up, assign all of the individual company codes to the same chart of accounts. This could be the case if all company codes are in the same country. In addition to the operating chart of accounts, you can use two additional charts of accounts If the individual company codes need different charts of accounts, you can assign up to two charts of accounts in addition to the operating chart of accounts. This could be the case if company codes lie in multiple countries. The use of different charts of accounts has no effect on the balance sheet and profit and loss statement. When creating the balance sheet or the profit and loss statement, you can choose whether to balance the co! mpany codes which use different charts of accounts together or separately. 9. What does definition of a chart of account contains?Ans: chart of account keyNameMaintenance languageLength of the GL Account NumberControlling IntegrationGroup chart of accounts (Consolidation)Block Indicator 10. Can one COA be assigned to several companies?Ans: yes. One COA can be assigned to several companies. 11) What is account group and what does it control? Ans: Account group determines which fields you can configure on the G/L master record. It is necessary to have at least two one for B/S and another one for P&L a/c.It controls the Number ranges of GL A/C.The status of fields of the master record of GL belongs to com[...]

SAP FICO Interview Questions

Fri, 09 Jan 2009 13:57:00 +0000

What is APC? APC stands for Acquisition and Production costs. Acquisition means any asset which you may acquire/ purchase externally. It includes invoice price and other related exp. Associated with it like customs, octroi, freight which you add and arrive at total cost of acquisition for capitalisation of the asset.For ex Say a computer. The total cost which you incurr for the acquisition of the computer including installation will be your APC Production cost means any asset which is created internally within the organisation. This is normally created by means of AUC and you go on adding cost to the AUC as and when you incurr exp. for the same.For ex. say addition to the office building. Therefore APC incudes any external acquisition or internal construction of exp. which needs to be capitalised. In OADB under 01 deprn area Acquisition & prod Cost tick is activated. *-- Marazban D. Dalal This is umapathy, I have intereview tomorrow, if anybody have taken interview with any company, kindly let me know what the questions they will be asking, how will be the interview. How the questions will be on configuration, implementation side and other questions plz.. share with me. Pl. prepare yourself on the following broad lines: Implementation exp.:Brief about the project you did: w.r.t. the main activity of the client, How many plants they had, What modules were implemented, Who were the implementers, What’s the implementation team size, How many were in your module team, What’s your role in the project with respect to the activities you partook in the project, The Enterprise Structure with regard to the no. of Company Codes, any Business Areas or Profit Centers defined, Cost Centers defined, What’s the period of the project, When did they Go-Live?, Any issues you’d solved during ‘Support’ phase? Questions on conceptual understanding:a) SAP R/3 definition and 3-Tier Architectureb) ‘Real time integration’ advantage of SAPc) ASAP methodologyd) Solution Managere) Client / Company / Company Code / Business Areaf) Business Area vs Profit Center Approachg) How effective will be the Financial Statements generated through Business Areash) With Holding Taxes vs Extended WHTi) Field Status Concepts (G/L master fields controlled through Account Group and Document entry through Field Status Group set in the G/L master)j) Special G/L transactionsk) Open item managementl) Reconciliation Accountsm) Subsidiary Ledgersn) Sort keyo) Negative Postings Allowedp) Special periodsq) Only balances in local currencyr) Important Posting keys for G/L, A/R, A/P, AA, Stock Entriess) Assessment vs Distributiont) Org. Structure for FIu) Org. Structure for COv) Product Costing: How the values flow in the system Configuration:a) Extended With Holding Taxes configuration steps – right from creation of WH Tax Types, Codes to Annual Returnb) FI-MM Integration (OBYC configuration with particular reference to Off-Setting entries)c) FI-SD integrationd) Down Payments transactionse) Interest – Balances / Arrearsf) Asset Accounting: Asset Class, Main Asset, Sub-Asset, Group Asset, Dep. Areas, Dep. Key, Transaction No.s (100- External acquisition, 210 – Retirement with Revenue, etc.), Imp. Transaction Codes. General questions:a) Educational Backgroundb) What influenced you to go in for SAP career?c) Functional Careerd) Present earnings vs Expected paye) Inclination to relocate[...]

Sample Account Assignment in G/L Account FICO General Ledger

Fri, 02 Jan 2009 09:28:00 +0000

Where do we specify the sample account in FS00. I created a sample account for all expense accounts to use a particular field status group. Now I want to specify that sample account while creating g/l accounts. how do I do that?

We define Sample account at OB15 and the path is SAP Ref:
IMG\Financial Accounting\GLAccounting\GLAccounts\MasterRecords\Preparations\Additional Activities\Sample Accounts

Step1: Maintain List of Rules types

In this step you just create a code for your Sample Account

Create a New Entry
XXXX Sample account for Pleasecontact1 then save

Step 2: Define Data Tranfer Rules FSK2

In this step you define the data tranfer rule i.e., whether it can be editable or only display etc after a Master recored is created with Sample Account.

Selects the fields that you want to transfer (check boxes)and can be changed and can't be changed etc., then save.

Step 3: Assign Company Code to Rule Type

In this step you will assign your sample account to your company code.

Just select your company and select your Sample account and assing then save.

Step 4: Create Sample Account. FSM1

Now create Sample Account same as you create at FS00, then Save.

Now Sample account is created. Now you can find Sample account field in FS00 (if you assign it company code it won't be displayed) enter Sample account no, and press enter all the fiels that you have selected in Step 2 will be copied (transferred) accrding the the rule (checkboxes) you have selected there.

At Tcode FS00

At FS00 you can see/Edit/Create a GL Master Record which is maintained by the Company Code. Where as Sample Account is not GL Master Record but it is a set of settings/rules which are easily available to create a GL Master Record (understand this point clearly) This sample account does not hold your transaction data nor you can edit or view at FS00.

To use your Sample Account:
1. Go to FS00, give a GL account no (other than Sample account no ofcourse). Select create
2. Then check all fields, whether any field is filled like Currency, Open Item Management, etc *for your confirmation* (obviously every field is empty)
3. Now enter Sample Account no in Sample Account field and give Account Group. press Enter. U will get a message that "Data from changed Sample account was accepted", check data.
4. Now chek all fields again. Now u will find some fields filled with values which you have defined in Data Transfer Rules while creating Sample Account.

This is the purpose of Sample account.

What is Debit note and Credit note? FICO General Ledger

Fri, 02 Jan 2009 09:27:00 +0000

Debit Memo - It is a sales document used in complaints processing to request a debit memo for a customer. If the prices calculated for the customer were too low, for example, calculated with the wrong scaled prices, you can create a debit memo request. The debit memo request can be blocked so that it can be checked. When it has been approved, you can remove the block. It is like a standard order. The system uses the debit memo request to create a debit memo. Credit Memo - A transaction that reduces Amounts Receivable from a customer is a credit memo. For eg. The customer could return damaged goods. A debit memo is a transaction that reduces Amounts Payable to a vendor because, you send damaged goods back to your vendor. Credit memo request is a sales document used in complaints processing to request a credit memo for a customer. If the price calculated for the customer is too high, for example, because the wrong scale prices were used or a discount was forgotten, you can create a credit memo request. The credit memo request is blocked for further processing so that it can be checked. If the request is approved, you can remove the block. The system uses the credit memo request to create a credit memo. As mentioned above, creating a credit or debit memo request enables you to create credit or debit memos based on a complaint. For this first create a sales document with the order type for a credit or debit memo request. You can create the debit or credit memo requests in the following ways:– Without reference to an order– With reference to an existing orderHere you enter which order the complaint refers to.– With reference to an invoiceHere you enter which invoice the complaint refers to.In all cases, you specify the value or quantity that should be in the credit or debit memo You can block the credit or debit memo request from being billed in Customizing. Go to Sales -> Sales Documents -> Sales document header -> Define sales document type and select the billing block field in the billing section. This request can later be reviewed along with similar ones, - if necessary, by another department. The request for a credit or debit memo can then be approved or rejected. To create Credit / Debit Memo request: - Use the same procedure that you use for Creating Sales Orders i.d T Code VA01- Give Order Type as CR for Credit Memo and DR for Debit Memo reuestWhile creating the request you have to enter Customer Number, Reason for the request. and Material and its quantity. Once the credit or debit memo request is released you can create credit or debit memo. The credit memo request will be automatically blocked for checking with Billing Block 08 (to check credit memo) & 09 (to check debit memo) for the sales order type “CR” . If it is not so you can customize the block for credit memo requests in Customizing for SD when you define the order type Sales and Distribution -> Sales -> Sales Documents -> Sales Document Header -> Define sales document types. The release of block is allowed to be removed only by the people who are authorized for it. If the amount is within acceptable limit the block is automatically released otherwise all the people assigned to this job receive a work item in their integrated inbox for release. If the complaint is not automatically blocked by the settings in Customizing, you can set a delivery or billing block manually.- Logistics -> Sales and distribution -> Sales.- Choose Order -> Change.- Enter the number of the sales document, or use a matchcode to search for it.- Choose Enter.- If all the items have been blocked, choose Select all.- If only some items should be blocked, select the corresponding items.- Choose Edit -> Fast change of... [...]

Various Postings To The FICO GL Account Postings

Fri, 02 Jan 2009 09:27:00 +0000

During various postings, the GL account postings will be taken place as follows: For Domestic Procurement of Raw Material During GR Material Stock Dr. GR/IR clearing Cr. During Excise Invoice Credit Cenvat Account Dr. Cenvat Clearing Cr. During Invoice Verification Cenvat Clearing Dr. GR/IR Clearing Dr. Vendor Payable Cr. For Domestic proceurement of Capital Goods During GR Material Stock Dr. GR/IR clearing Cr. During Excise Invoice Credit Cenvat Account Dr. (50%) Cenvat On-hold Dr. (50%) Cenvat Clearing Cr. During Invoice Verification Cenvat Clearing Dr. GR/IR Clearing Dr. Vendor Payable Cr Subsequent of Capital Goods Cenvat Account Dr. (50%) Cenvat On-hold Cr. (50%) For Import Procurement of Raw Material During Customs Duty Clearing invoice Custom Clearing Dr. Custom Payable Cr. During GR Material Stock Dr. GR/IR clearing Cr. During Excise Invoice Credit Cenvat Account Dr. Custom Clearing Cr. During Invoice Verification GR/IR Clearing Dr. Vendor Payable Cr. For Excise Duty Credit of Raw Material without PO Cenvat Account Dr. Cenvat Clearing Cr. For Excise Duty Reversal through Excise JV Cenvat Clearing Dr. Cenvat Account Cr. During Excise Invoice Creation Cenvat Suspense Account Dr. Cenvat payable Cr. For TR6C Challan PLA Account Dr. PLA on hold Account Cr. During Fortnightly Utilization Cenvat payable Dr. Cenvat Account Cr. PLA Account Cr.[...]

Difference between Posting Key and Field Status Variant FICO General Ledger

Fri, 02 Jan 2009 09:26:00 +0000

What is the use of Field Status Variant. Why it is required? What is the difference between "Posting Key Variant and Field Status Variant". Why both the things are required to define as both control the fields. What specific fields are controlled this fields. 'Posting Key Variant ' Controls- fields of Posting Key and 'Field Status Variant' controls fields of G/L Account.Fields of G/L Account which are controlled by FSV can see in T.Code OBC4 and Fields of Posting Keys in SPRO-FAGS-Document- Line Item. Both can controls common fields, then SAP applies 'SDRO' rule. SDRO rule. The fields can be Suppressed, Displayed, Required, Optional. Posting is key controls - which type of accounts can be posted to - whether the line item is debit or credit - and the field status of the document line item Where as FSG (group into Field status Variant) controls only the the document line item for that account. There are only three field status options during document entry: - Suppressed - Required - Optional If both Posting key and FSV has the same field as Required and optional, system uses the link rules, takes the one which has the highest priority(in this case required). But in case of Master record Field status which is controlled by Account Group, there are 4 options of field status:- Suppressed- Display- Required- Optional Account group defines: a. length of gl account number b. no. ranges of the gl account numbers c. field status of the GL account master data in the company code segment.(which fields to appear when you create a gl account) (to control...double click on your GL account group in Screen transaction code OBD4) Posting key defines: a. whether the line item is a debit or credit b. to which type of account the amount should be posted to(ex: when you use posting key 40, you will be able to post to gl accounts. When you use Posting key 01, you will be only able to post to customer account. c. document screen layout during posting of a document. (which fields to appear in a document...double click on the posting key and select field status and make the entries as required /optional etc) Field status group defines: Document screen layout during posting of a document. (which fields to appear in a document...double click on the field status group and select fields and make the entries as required /optional etc) LOGIC: you assign field status variant to the company code, FSV is a bundle of field status groups. ex: in FSG G001 you have made the text as required assigned the field status group g001 to cash when you use cash account and try to post a document it will definitely prompt you to enter the text (text made as required.) Both FSG and PK control the same feilds in a document.There is no dominance between FSG and Posting keys..but we should know the allowed combinations.... If text is made required in PK and suppressed in FSG..the system will issue a error msg..Rules for PK...and set incorrectly for SGTXT field. Permissable combinations: Pk R/S O/S R/o R S O FSG S/R S/O o/r R S O Result e SD RD NP NP NP R = required s = suppressed e = error SD = Suppressed dominates Rd = required dominates np = no problem.[...]

What is Hold and Parking of Document? FICO General Ledger

Fri, 02 Jan 2009 09:26:00 +0000

Hold Document: It is for short term and is used when tranaction Dr or Cr is uncertained and generally its is used for external purpose. eg: Advance from potential customer

Parking Document: Its is for longer period generally used for internal purpose. eg: Advance made for employes.

What is the main purpose of this document. Why we are using this one to in FI? How it is useful?

Parking documents is used when we need to get any clarification regarding some account.

We can temporarily park or store this document till we get it cleared or approved.

Then we can post it.

Remember.... parking does not update the accounts....... it just stores the document..... whereas posting will update the accounts....( for example.... the reducing/increasing of the account balances).

The TC for Parking Documents is F-02 -> enter the required details ->go to the menu (at top ) ->Document-> Park.

To post a parked document : FBV0-> go to the menu Document-> Post.

Other TCs used pertaining to Parking of Documents are :

FV50 : Post / Delete : Single Screen Transaction
FBV2 : Change
FBV3 : Display
FBV4 : Change Header
FBV5 : Display Changes
FBV6 : Refuse

F-63 Park Document - Only transfer amounts in document curr. in invoice

In F-63, there is a checkbox "Only transfer amnts in document curr. invoice", may I know what is the purpose of this checkbox & under what circumstances we will use this checkbox.

"Only transfer amounts in document curr. in invoice"

If we sets this indicator it translates the doc. currency into local currency at the time of parked document.

If we not set this indicator it translates the doc. currency into local currency when posting of document.

Eg: We are parking a document with doc. currency in USD @40- the next day we are posted that document then it is @42- the system takes the exchange rate from the header which was specified in the parked document @40- only. If we not set this indicator it will take at the time of posting of document @42-

Using the Lock Box Files in FICO General Ledger

Fri, 02 Jan 2009 09:25:00 +0000

I was trying to learn & experiment with using the lock box. However, I don't have any sample files that I can upload and see if it works. Does anyone have any sample bank files and any material that I can use. It would really help me undestand the procedure.

Lockbox is a process provided by a bank where the customer remits his payment to a PO Box at your bank, the bank deposits the check in your account and enters the remittance data from the customer. Then the bank sends the data to you electronically for you to import and apply in SAP-AR.

The structure that the bank uses is usually one of two formats. BAI will provide you the customer information and the check amount but no invoice remittance data. Usually cheaper and works well for a business where customers are paying only one invoice at a time.

BAI-2 offers remittance data but the bank charges more for the service because they have to enter more info.

Look at structures FLB** to see the transfer data.

When the bank sends the customer payment data you use Treasury function FLB2 to import and then process the payments. This process attempts to determine where to apply the payment and will post directly against an invoice, an account to a customer or if it can't even determine the customer it posts into a clearing account (configured) to be resolved.

Configuration for Special Purpose FICO General Ledger

Fri, 02 Jan 2009 09:25:00 +0000

SAP FI Question:
Why do we use special purpose ledger?
What are the configurations we need to make?

We are using the Special Purpose Ledger for statutory reporting or mangement reporting purpose. It also help us in doing single entry, adjstment posting like income tax deperication.

Steps for cofig.
- Define Table Group
Financial Accounting -> Special Purpose Ledger -> Basic Settings -> Tables -> Definition -> Define Table Group

- Maintain Field Movement
IMG Menu Path :
Financial Accounting -> Special Purpose Ledger -> Basic Settings -> Master Data -> Maintain Field Movements

- Maintain Ledger for statutory ledger
IMG Menu Path :
Financial Accounting -> Special Purpose Ledger -> Basic Settings -> Master Data -> Maintain Ledgers -> Copy Ledger
Assign Co Code
Assign Activities

- Define Versions
IMG Menu Path :
Financial Accounting -> Special Purpose Ledger -> Periodic Processing -> Currency Translation -> Define Versions

- Set Up Exchange Rate Type
IMG Menu Path :
Financial Accounting -> Special Purpose Ledger ® Periodic Processing -> Currency Translation -> Set Up Exchange Rate Type

- Create Number ranges
IMG Menu Path :
Financial Accounting -> Special Purpose Ledger -> Actual Posting -> Number Ranges -> Maintain Local Number Ranges

- Create Currency Translation document type
IMG Menu Path :
Financial Accounting -> Special Purpose Ledger -> Actual Posting -> Maintain Valid Document Type

- Create Posting period variant
IMG Menu Path :
Financial Accounting -> Special Purpose Ledger -> Actual Posting -> Posting Period -> Maintain Local Posting Period

What is "Real Time" Integration? FICO General Ledger

Fri, 02 Jan 2009 09:24:00 +0000

What is "real time integration" advantage of SAP?

What is the Config for Integration entry? How these entries get formulated in backend?

Real time integration is nothing but the data posting to all the affected areas instantly when an activity is performed. For E.g. When you do a FI-SD integration, when a PGI is posted, the following entry is affected :

1. Cost of Goods Sold Dr 100
To Inventory Account Cr 100

Here the Cost of Goods Sold is an FI entry and Inventory Account related to MM but both of them gets affected immediately when you post a PGI in SD.

The updation of these entries when PGI is done is called Real Time Integration. The affect is shown in all FI, MM and SD modules once you save the entry.

The configuration for the below entry is done in OBYC

1. Cost of Goods Sold Dr 100 (T-Key GBB)
To Inventory Account Cr 100 (T-Key BSX)

The automatic entries are posted to inventory accounts through T-keys to which GL accounts are assigned. These T-keys are assigned to movement types in MM. Please refer to T-code OMWN and OMWB for proper understanding.

Document flow confusion in FI General Ledger

Fri, 02 Jan 2009 09:24:00 +0000

I have a problem understanding basic things like how a document flows in the Sap system. When posting a customer invoice the subledger will be debited with that amount, now my confusion is will the same amount be posted to the G/L only or the very same amount will also be posted to the reconciliation general ledger - making 3 postings or The recon acc is the G/L . I don't see 3 postings happening because then 2 debits will be Posted against one debit -please clarify me on this. Also the different between the G/L, Special ledgers and the recon acc is not clear to me.Customer and Vendor accounts are maintained in a subledger. Posting to these accounts will also be posted to the A/R and A/P reconciliation accounts. All Reconciliation accouints are GL accounts. All G/L accounts are not reconciliation accounts. Why is this done? In large businesses, there will be hundreds/thousands of customers/vendors. All these are personalaccounts (there are three types of accounts: nominal, personal and real). These personal accounts are grouped in to sub-ledgers and any posting to them is reconciled to the G/Lvia the reconciliation accounts. PrakashFor fulfilling completing the double entry system accounting the Reconciliation accounts i.e., Accounts Receivable and Accounts Payable are used. All the Vendors are grouped under Acounts Payable & Customers are grouped under Accounts Receivable. And also always any time the balance in reconciliation account shows as zero. Ex: 1) Vendors transaction: For Invoice posting: Inventory A/c Dr To Vendor A/c................Accounts Payable A/c (Reconciliation Ledger)(In SAP since we are linking in the G/L Master Accounts Payable with the Reconciliation Accounts type setting as Vendors. Hence, with one entry 3 Accounts are automatically updated) Accounts Payable is Liability & Inventory is Current Assets. For Payment to Vendor: Vendor A/c Dr.....Accounts Payable A/c To Bank/ Cash A/c Ex:2) Customer Transaction: Sales Invoice Posting: Customer A/c Dr...Accounts Receivable A/c (Reconciliation A/c) To Sales A/c Receipt Posting: Bank A/c Dr To Customer A/c...........Accounts Receivable A/cIn Normal Accounting the Reconciliation Accounts are called as Control Accounts and we pass 2 entries for each transaction i.e., Sale, as following:1) Customer A/c Dr (Sales Ledger / Accounts Receivable A/c) To Sales A/c (General Ledger)2) Accounts Receivable A/c Dr (General Ledger) To Customer A/c (Sales Ledger Adjustment A/c) Hence, any time the Control A/c balance is zero.I hope I am clear and now your confusion problem gets resolved.AshokThese are basic accounting differentiation for different types of accoutns. This is a basic accounting concept and is not specifically mentioned anywhere in SAP terminology. Personal accounts: Accounts in the name of individuals, organizations etc.For example, Company A A/c, XYZ limited co A/C, Suresh A/C, Indian Bank A/C etc Real Accounts: These are accounts related to assets, both real and tangible.example, furniture a/c, machinery a/c, accounts receivables a/c etc Nominal Accounts: These are related to incomes/expenditures and profit/losses.for example, sales A/c, salary a/c etc I hope this clears your doubts[...]

Step-by-Step Procedure for Customizing an Electronic Bank Reconciliation Statement FICO General Ledger

Fri, 02 Jan 2009 09:23:00 +0000

To set up Electronic Bank Statements (EBS)

Processing in SAP for most customers in North America.

1. Create House Bank and Account ID (FI12)

2. Setup EDI Partner Profile for FINSTA Message Type (WE20)

3. Configure Global Settings for EBS (IMG)
- Create Account Symbols
- Assign Accounts to Account Symbols
- Create Keys for Posting Rules
- Define Posting Rules
- Create Transaction Types
- Assign External Transaction Types to Posting Rules
- Assign Bank Accounts to Transaction Types

4. Define Search String for EBS(Optional)
- Search String Definition
- Search String Use

5. Define Program and Variant Selection

Additional information is also available in the SAP Library under:
Financial Accounting > Bank Accounting (FI-BL) > Electronic Bank Statement >
Electronic Account Statement Customizing.

SAP FI Tips by: Ramesh

Bank Reconcilliation Statement

The following are the steps for BRS:

Create Bank Master Data - This can be created through T.Code FI01 or you can also create the house bank through IMG/FA/Bank accounting/Bank account

2. Define House Bank

3. Set up Bank selection payment programe- IMG/FA/ARAP/BT/AUTOIP/PM/Bank selection for payment prg.

a. setup all co codes for payment transaction - Customer and vendors

b.setup paying co codes for payment transactions

c.setup payment method per country

d.setup payment method per co code for payment transaction

e.setup bank determination for payment transaction

Please go for Cheque mangement using T code FCHI (IMG/FA/ARAP/BT/OP/AutoOp/PaymentMedia/CheckManagement) and for void reasons FCHV. You can create Bank Reconcilliation statement by TC FF67 (SAP/AC/Treasury/CashManagement/Incomings/ManualBankStatement) . Don't forget to keep the opening Balance as zero. Use FBEA for post process.

All the steps together will lead to (FF67) Bank reconciliation statement.

How to Configure FICO Reconciliation General Ledger

Fri, 02 Jan 2009 09:22:00 +0000

In Co, we create Recon accts to keep Fi gl in balance with CO. Not all transactions affect FI gls, best example of it is internal order settlements, they use secondary cost elements and does not affect your G/l accts. To update FI side of it we maintain recon accts. These are primarily for cross company, cross functional and cross business area transactions.

The number of recon accts to be defined is dependant on various factors, like how your management wants to see the reports.. whether they want to classify the cost based on CO object class or by Co types etc..

However the basic config you got to follow is:

1. Activate Recon accts (if you have created CO area newly, it would be active).
use T.code: KALA

2. Assignment of Recon document type to the Controlling area.
T.code: OKKP

3. Creating clearing accts (that you want to us! e for reconciliation. During FI-Co recon.. inter company clearing accounts will be automatically credited or debited and now you need to create offset acct which will show up in P&l acct).
Acct determination set up thru T.code: OBYA

4. Maintain accts for Automatic Recon posting.
T.code OBYB

5. Assign Number ranges to Recon activity.
Tcode OK13 *-- Radha Krishna

Without creating of reconciliation account, can you create vendor? What is the use of reconciliation?

Customer and vendor accounts are sub ledger GL's. We will have to create two reconciliation GLs in viz. Reconciliation GL for Customer and Vendor in chart of accounts.

After, while creating customer and vendor master records, we have to mention respective reconciliation GL in their company code segment details. This recon a/c will show you the net balances in GL for customer and vendor a/cs.

Without creating Vendor you can still create individual GL for each customer and vendor , but then
1) Your list of GL's in chart of account will be very lengthy.
2) Duplication of work as SD/ MM people are also required to create their own list.
3) Cross company code consolidation will not be possible as the chart of accounts will be different.
4) Very difficult to keep track of individual customer/ vendor a/cs.
5) Not advisable even in real time accounting system i.e. manual book keeping.

Change Reconciliation Account of Customer Master FICO General Ledger

Fri, 02 Jan 2009 09:22:00 +0000

There is no problem to change the account number in the vendor or customer master data, that is :

All Document Items that were created in the old account will be posted in the same old account when you have a payment posting, compensations, etc.

All document created after the change will be posted in the new account as well as the payment postings, compensations and others.

The system will separate the postings in accordance with the moment at the documents were created.

You can do a test in the development client before you do the change in the production.

For example :-

You can create a new reconciliation account because you want the G/L accounts to separate out sales. Just switched the setting in Customer Master and off you go. SAP will recognized the old account for the old postings and used the new account for any new postings.

Here is the official SAP help on the subject:-

You should run balance sheet adjustment program after any reconciliation account change.

The system performs any adjustments required due to the change of reconciliation accounts or G/L accounts. The items from the old reconciliation accounts are allocated to the new accounts.

Since you cannot post to the reconciliation accounts directly, the postings are made to temporary adjustment accounts.

These adjustment accounts should be displayed along with the relevant reconciliation account in the balance sheet. The postings are then reversed after the balance sheet has been created.

The program for sorting the payables and receivables makes the necessary adjustments automatically. This means that you have to define the adjustment account numbers and the posting keys for these postings in the system.

If you purchase and install the FI-LC Consolidation application and have bought up a previous customer or vendor (thus also taking on his/her payables and receivables), please refer to the note in the report documentation on changed reconciliation accounts. To define the account numbers, select the activity Define adjustment accounts for changed reconciliation accounts in the Accounts Receivable and Accounts Payable Implementation Guide.

You should only run this program if your new reconciliation account is classified differently from the original in your FS. e.g.. AR to Intercompany accounts. It will just reclassify the existing balance. The line items will not be transferred. If not then no need to run the program at all.

What is GL At Company Level and Chart of Accounts FICO General Ledger

Fri, 02 Jan 2009 09:21:00 +0000

Please explain what is meant by general ledger at company code level and chart of accounts level?

General Ledger has two segments i.e.,

1. Chart of Accounts Data (T.Code= FSPO)and
2. Company Code Data (T.Code =FSSO)

GL account master records are divided into two areas to that company code with the same chart of account can use the same GL account. The chart of account area contains the data valid for all company codes, such as Account Number.

The Company code specific area contains data that may vary from one company code to another, such as the currency in which the account may be posted.

Lets, suppose there are not segment both the segments are combined, at that time it will become difficult to copy the Company Code data because the fields may vary in company code. for example Currency, though you have same Chart of Account Data.

Because, GL Accounts has two segments, it will be easy to copy Chart of Accounts data from A company code which matches your requirement and Company Code data of B Company code and you can create a separate chart of account in C company code.

To copy Chart of account data and Company code data seperately, see Alternative method of creating GL Master in IMG screen.