11 Define Tolerance Groups for Employees in SAP

We need to predefined various amount limits for our employees with which we determine.

* the maximum document amount the employee is reauthorized to post

* the maximum amount the employee can enter as a line item in a customer or vendor account

* the maximum cash discount percentage the employee can grant in a line item

* the maximum acceptable tolerance for payment differences for the employee

Payment differences are posted automatically within certain tolerance groups. this way the system can post the difference by correcting the cash discount or by posting to a separate expense or revenue account.

* the amounts or percentage rates up to which the system is to automatically post a separate expense or revenue account if it is not possible to correct the cash discount or up to which difference amounts the systems is to correct the cash discount. in this case the cash discount is automatically increased or decreased by the difference. using tolerance groups.

You can also additionally differentiate these settings by company code. Since the same rules usually apply to a group of employees, enter the values for employee groups. You can then enter amount limits and tolerances per employees group and company code. You can also define tolerances without specifying a tolerance group. leave the field group empty in this case. the stored tolerances are then valid for all employees who are not allocated to a group. there must be at least one entry for every company code. you can  also specify tolerances for clearing procedures depending on you customer or vendor the lower limits for the customer or vendor specifications and employee group are take  in each case during clearing. in my example i will define a blank tolerance group for company code SRi. you can use existing tolerance group from the sample company code.

Path: IMG-Financial accounting-financial accounting global settings-Document-Line item-define tolerance groups for employees(OBA4)

Click New Entries

Click save to save

Thus cash discount per line item for a user is 50% and he can post amount per document to the above limits further the user can per open item to the above given limit.

10 Maintain Field Status Variants

You can define and edit filed status variants and groups. you group several filed status groups together in one field status variant you assign the field status variants to a company code in the activity assign company code to field status variants this allows you to work with the same field status groups in any number of company codes.
You can also define and process field status groups you must define a field status group in the company code specific area of each GL account The field status group determines which fields are ready for input, which are required entry fields and which are hidden during document entry bear in mind that additional account assignments are only possible if data can be entered in the corresponding fields.
Field status variant 0001 is entered for company code 0001 in the standard SAP. Field status groups are already defined for this variant.
The field status group you enter in the reconciliation accounts affects postings to the related customer or vendor accounts. you cannot enter a field status group in the customer and vendor accounts from their respective reconciliation accounts via the GL account number in their master records.
There are other factors besides the field status among these are
The fields status defined for the posting key
the status "optional entry field" was assigned to posting key 40 and 50 in the standard system these are the standard posing keys for GL account postings the "optional entry field" status has no effect on the field status
Copy the standard filed status variant 0001 to create new field status variant SRI the field status variant SRI can be attached to all the group company codes S LTD

Path: IMG-Financial accounting-Financial accounting global settings-Document-Line item-Controls-Maintain field status variants(OBC4)
 

Click copy all to copy

Click save to save

thus field status variant SRI is created

Assign company code to Field status variant

In this activity you assign the company codes in which you want to use assign identical field status  groups to the same field status variant
Assign company code SRI to Field status variant SRI

Path: IMG-Financial Accounting-Financial Accounting global settings-Document-Line item-Controls-Assign company code to field status variants (OBC5)

Click save to save

9 Enable Fiscal year default & Enable Default Value Date

Here you determine that a fiscal year is proposed during document display and for document change functions in SAP. The system uses the year which was last used by the user in the work session. The option is only useful for company codes working with year-dependent document number ranges.

Path: IMG -Financial accounting-Financial accounting global settings-Document-Default values for document processing-Enable fiscal year default (OB63)

Click save to save

Enable Default Value Date

When entering line items in SAP you may need to enter a value date. in this activity you can determine, per company code whether the CPU date is defaulted as the value date.

Path: IMG-Financial accounting- Financial accounting global settings-Document-Default values for document Processing- Default value date (OB68)

Click save to save

8 Create document number ranges for Company Code

Here we create the number ranges for documents. For each number range you specify,

* A number interval from which document numbers are selected
* The type of number assignment ( Internal or external)

You assign one or more document types to each number range. the number range becomes effective via the document type specified in document entry and posting. Number ranges for documents are company code-dependent you must therefore create your number ranges for each company code in which the document type is used, namely with the same number range key.

The number intervals must not overlap. if you use year-dependent number ranges, you can specify the same interval with a same key several times for different to fiscal year. if you want to define number ranges, which are independent of the other number ranges.

to copy form another company code

Path: IMG-Financial accounting-financial accounting global settings-Document-Document number ranges-Define document number ranges(FBN1)

Click copy( F7) button

enter

To manually create number ranges proceed as follows

Intervals -Insert Intervals (Shift+F1)

Enter-Save-Enter to save

Thus Document number ranges are created for company code SRI these number ranges are year dependent for company codes posting the number ranges should be defined as year dependent

NOTE: that the number ranges are not included in the customising request they need to be transport manually

Click Interval-Transport

7 Define Posting Period Variant

Here you can define variants for open posting periods, in this standard setting, a separate variant for posting periods is defined for every company code. the name of this variant is identical to the company code name. Every company code is allocated to this variant with the same name.
Thus in our example we will have posting period variant which is identical to the company code SRI.

Path: IMG-Financial Accounting-Financial Accounting Global settings-Document-Posting Periods-Define Variants for open Posting Periods(OBBO)

Click New Entries and Update the following .

Click Save to save

Define Variants for open posting periods

Here you specify for each variant which posting period are open for posting in SAP. Two intervals are available for doing this (period 1 and period 2) For every interval, enter a lower period limit, an upper period limit and the fiscal yer.
You close periods by selecting the period specifications so that the periods to be closed are no longer contained
You can copy the settings from existing company codes delivered by SAP as Follows

Path: IMG-Financial Accounting-Financial Accounting Global settings-Document-Posting Periods-Open and Close Posting Periods(OB52)

Click the copy button

Update the following fields

Click save to save

Thus posting periods time intervals for various account types are created for variant SRI In SAP

Various account types in SAP

+=Valid for all account types
A=Assets
D=Customers
K=Vendors
M=Materials
S= GL accounts
V=Contract accounts

Assign posting period variant to Company Code
the posting period variant SRI needs to assign to company code SRI.

Path: IMG-Financial Accounting-Financial Accounting Global settings-Document-Posting Periods-Assign variant to Company Code(OBBP)

Click save to save

Thus posting period variant SRI is assigned to company code SRI in SAP

6 Maintain Fiscal Year Variant

Fiscal Year nothing but the way financial data is stored in the system, SAP provide 4 Special periods including normal periods.
How many posting periods a fiscal year has, how many special periods you need, how the system is to determine the posting periods when posting.
When define your fiscal year, you have the following options.

* Your fiscal year is the calendar year in this case, you must only select the calendar year field.

* Your fiscal year is not the same as the calendar year and is not year dependent in this case, you first enter the number of your posting periods in the Number posting per.field. To define your posting periods, select your fiscal year variant and select periods on the navigation screen. On this screen, enter the month and the day of the period end and the period in each case.

* Your fiscal year is not the same as the calendar year and is year dependent
Enter the number of your posting periods in the field Number posting periods and select the field Year-Dependent. To define your posting periods, select your fiscal year variant and select periods on the navigation screen. The system asks for which calendar year your year-dependent fiscal year variant is valid. You then enter the month and day of the period end for each of your periods, and the periods themselves.

You can use the standard fiscal year variant K4 in SAP where the financial accounting year corresponds to January to December.
in case the financial accounting year is April to March, you can use the standard fiscal year variant V3 in SAP. in my case i am using standard fiscal year variant V3.

Path: IMG-Financial Accounting-Financial Accounting Global Settings-Fiscal Year-Maintain Fiscal year variant (OB29)

Assign Company Code to a Fiscal Year Variant

The company code SRI needs to be assigned to a fiscal year variant. this controls which periods the company code will post data.

Path: IMG-Financial accounting- Financial accounting global settings-Fiscal Year-Assign company code to a Fiscal year variant(OB37)

Assign company code SRI to V3 fiscal year variant in SAP

Click save to save.

5 Define Retained Earnings Account in SAP

You Assign a retained earnings account to each P&L account by specifying a P&L statement account type in the chart of accounts area of each P&L account in SAP.
At the end of a fiscal year, the system carries forward the balance of the P&L account to the retained earnings account in SAP. You can define one or more P&L statement account type per char of accounts and assign them to retained earnings accounts.

Path: IMG-Financial Accounting-General Ledger Accounting-GL Accounts-Master data-Preparations-Define Retained Earnings Account (OB53)

update the following fields

Enter X in P&L statement, Enter the account code for Retained earnings account You will get a message Account not created in chat of accounts SRI"" ignore it.

Click save to save

Thus Retained earning account is created for chart of accounts SRI in SAP

You need to create this GL code later on at the GL code creation stage. you cam crate multiple retained earnings accounts with a key Y and GL code 100101-Retained earnings account (Local-Parent)

this retained earnings account is required to carry on the difference between the local reporting and parent reporting. For Ex.:-As per local Law the depreciation is calculated 10% straight line method( works out to 10000 INR) whereas as per the parent companies reporting the depreciation rate is 15% SLM( Works put to 15000 INR) thus the depreciation calculated will be different for local and parent. thus the reported will be different and the profit carried forward to the balance sheet will be different.

Eg:

the local depreciation is posted to GL code 400500 depreciation local 10000 INR
the depreciation for the parent is posted as difference between local and parent (15000 INR- 10000 INR=5000 INR) to GL code 400501 depreciation local parent 5000 INR.

The GL code 400500 is mapped to retained earnings account X and the GL code 400501 is mapped to retained earnings account Y in SAP.

4 Define Account Group

In order to organize and manage a large number of GL accounts better in SAP, they are arranged in account groups

the accounts of an account group normally have similar business function. You could, for example, have an account group for cash account, one for expense accounts, one for revenue accounts and one for other balance sheet accounts etc.

Further you can copy from the account group delivered by SAP for INT chart of accounts or you can create new account group required as per customer requirement.

to copy from the other account group you need to mark the chart of accounts in the following manner

path: IMG-Financial Accounting-General Ledger Accounting-GL Accounts-Master data-Preparations-Define Account Group (OBD4)

or you can create the following order

Select New Entries

Chrt/Accts-- Acct Group--Name --From acct --To Account

SRI--SCPL--SHARE CAPITAL --100000--100099

SRI--RSPL--RESERVES AND SURPLUS--100100-100199

SRI--ACDL--ACCUMULATED DEPRECIATION--10020--200299

SRI--SCLN--SECURED LOANS--100300--100399

SRI--UNSL--UNSECURED LOANS--100400-100499

SRI--CLPR--CURRENT LIABILITIES & PROVISIONS--100500--100599

SRI--FAST--FIXED ASSETS--200000-200099

SRI--CAST--CURRENT ASSETS & ADVANCES--200100--200199

SRI--SALE--SALES--300000--300099

SRI--OTHR--OTHER INCOME--300100--300199

SRI--INCR--INCREASE/DECREASE IN STOCK--300200--300299

SRI--RMCR-RAW MATERIAL CONSUMPTION--400000--400099

SRI--PRSN--PERSONNEL COST--400100--400199

SRI--MERG--MANUFACTURING COST--400200--400299

SRI--ADMN--ADMINISTRATION COST--400300--400399

SRI--INTR--INTEREST--400400--400499

SRI--DEPR--DEPRECIATION--400500-400599

Thus Account Groups are created for chart of accounts SRI in SAP

3 Create Chart of accounts in SAP

 For each company code in SAP, you have to specify one chart of accounts for the general ledger. This chart of accounts is assigned to the company code. A chart  of accounts can be used by multiple company codes. This means that the general ledgers of these company codes have identical GL structure.

Path: IMG-Financial Accounting -General Ledger Accounting-G/L Accounts-Master Data-Preparations-Edit Chart of Accounts List (OB13)

click on NEW ENTRIES and update the following fields

Click Save to save.
you can have controlling integration i.e Manual creation of cost elements or Automatic creation of cost elements. Its is advisable to have manual creation of cost elements in SAP FI. But remember whenever you create a GL code in FI, immediately create the cost element in the CO module of SAP.


Assign Company Code to chart of accounts

Path: IMG-Financial Accounting -General Ledger Accounting-G/L Accounts-Master Data-Preparations-Assign Company code to Chart of Accounts List (OB62)

Click save to save.

2 Company Code Configuration

Creating company code in SAP

Company code is the basic organizational unit in SAP FI for which a balance sheet and profit & loss account can be drawn. we create company code SRI (S LTD) is located in Country India.

For doing the configuration we use the following path on the SAP application screen,

SAP Menu-Tools-Coustomizing-SPRO(Execute Project)-SAP Reference IMG(F5)

Configuration for all the modules will be done here. The above path will not be referred henceforth, i will directly refer to the IMG node.

Path: IMG-Enterprise Structure-Definition-Financial Accounting-Define,copy,delete,check company code( OX02)

A) Copy ,delete,check company code
B)Edit company code data

Double click on edit company code, by selecting the second option edit company code data you have to manually configure all the subsequent assignments.

Select -New Entries  and update the flollowing required fields

Country : the country where company code is located and the balance sheet and income statement which will be prepared according to that country law. Here the company is located in india so, i have selected the contry id IN(India)

Currency it is the loacal reporting currency of the countryin this case it is INR( Indian Rupees) since the company is located in India.

Click on Address button (shift+F5) and update the following

Click SAVE to save

Create request(F8)

short description: S ltd

save (enter)

Continue (Enter)

1 SAP FI TRAINING INTRODUCTION

First we will go through a bit of introduction about the SAP Finance Module before we grind in further. 

SAP FI (Financial Accounting) is the basic module and very important module in SAP. SAP FI module receives posting from the various other modules such as MM (Materials Management), SD (Sales and Distribution), and HR (Human Resource) through various integration points. All the posting from the aforesaid modules are posted real-time to FI module. FI module feeds in data to CO modules such as Cost centre accounting, profit center accounting and the Profitability analysis module.   SAP FI module is geared for external reporting i.e. legal reporting , tax reporting. The basic report possible from FI module is the Balance Sheet and profit loss account.

The plants created in the logistics (General) module are assigned to the company code. That means all transactions taking place in the plants are posted to the  attached company code in SAP FI.

The purchasing organization created in the MM module is attached to the Company code.

The sales organization created in SD module is attached to the company code.

A company code created is assigned to the Controlling area.

To help you understand the SAP terminologies, i will go through a relevant example which will help you configure the system more effectively.


in this SAP training, i will configure a company SRI (S LTD) located in India, the currency in India is INR, therefore the currency of the company code will be INR. consider the reporting period in that country as April to March. I will also cover briefly the FI-MM integration, FI-SD integration. 

The parent company of S Ltd is located in US. therefore S Ltd is required to report figures in USD. we need to configure parallel currencies to have such reporting possible..