Saturday, January 27, 2007

SIMPLE DOCUMENTS

1) Document header contains: Document and posting date, Doc, header text, company code, Reference no, etc.

2) For each FI transaction code (E.g. Invoice, Credit memo, G/L entry – F-02) you can define a document type and default posting key. (You can over write these default values while entering document.)

3) In Enjoy transactions : while entering customer/vendor Invoice/Cr.Memo transactions Vendor/Customer (Business partner) master data can also displayed along side the a/c name, address and bank details, and open line items can be accessed by pressing “Open Items” button. Entry screen also contains a/c balance display.

4) In Enjoy transactions via “Tree” you can access screen variants, a/c assignment templates and held documents at the left side of the screen.

5) You can enter explanatory text for line items with “*” in front of the text so as to print this text in dunning notices and payment advice notes.

6) In customizing you can define text templates under 4 digit key, these text templates are copied into line item when you enter the relevant key (E.g. DP = “DOWN PAYMENT”). While entering 4 digit key “=” needs to be entered before the key.

IMG:FI A/cing>Doc>Line Item>Define texts for line items.

POSTING AUTHORISATION

IMG: FI.A/cing> F.A.Global settings>Document>Doc Item> Define tolerance groups for Employees.

1) The maximum amounts are defined per company code in “TOLERANCE GROUP”. (This is also where the payment processing of payment differences is controlled)

2) In the tolerance groups you can enter Upper limits for the following :

i) Total amount per document. (The posting amount is the total of all debit items or, similarly, the total of all credit items.)

ii) Amount per customer/vendor item. (Limit is per customer, one document with more than one customer/vendors can be entered) The restriction does not apply to automatically created line items, for example, during payment settlements.

iii) Cash discount – which user with this tolerance group is able to grant.

3) If a user is not assigned to any special tolerance group, then entries in the tolerance group “___” (blank) are valid for them. (This is default tolerance group)

POSTING PERIODS

IMG: FI.A/cing> F.A.Global settings>Document>Posting Periods> Open and close posting periods.

1) Several Company codes can use same posting period variant.

2) The SAP system automatically determines the posting period and fiscal year based on the posting date entered. (Only special period needs to be manually changed)

3) The posting period variant is assigned to the company code.

4) Posting periods are defined in the fiscal year variant, Closing/opening posting period are carried out in posting period variant.

5) The posting period variant must contain at least the account type “+”.

6) During year closing, two period intervals (Normal and special periods) must be open at the same time.

7) In the document header, the periods assigned to the account type “+” are checked with posting date, whether posting period is open for that date or closed. At the line item level, the system checks the account type of the posting key to ensure that the period is open for the assigned account type.

DOCUMENT STRUCTURE / CONTROL

1) A document is saved for every posting. Every Document is uniquely identified by the Document Number, Company Code and Fiscal Year.

2) A Document contains Document header + 2 to 999 line items.

3) Document Type : Controls the Document header and classify the business transactions to be posted.

Posting Key : Controls the Line items.

4) Document types are defined at client level. Document types define the following:

a) Number ranges for Document number.

b) Account types permitted for postings. And also

c) The field status of “document header Text” and “Reference number” in the Document header.

d) Whether the invoices are posted with net procedure.

5) Standard Document types are :

KR – Vendor Invoice DR – Customer Invoice.

KG – Vendor Cr.Memo. DG – Customer Cr.Memo.

KZ – Vendor Payment DZ – Customer Payment.

AB – General Document SA – G/L a/c posting.

6) Document numbers can have internal or external number assignment.

7) Up to a future fiscal year – Number range will continue irrespective of year end.

For each fiscal year – At the start of a new year the system starts the number assignment again at the start of the number range. (You need to define number range for every new fiscal year)

8) The document number range must not over lap.

9) Document type AB allows postings to all account types.

10) One number range can be assigned to several document types.

11) Posting keys are defined at client level.

12) Posting keys control:

i) On which type of account the line item can be posted to

ii) The item is posted as a Debit or Credit.?

iii) The field status of additional fields.

In addition to this posting key specifies the following:

Whether line item is connected to payment transaction or not.

Whether posting is sales relevant.

13) Document line item fields are controlled by :

a) G/L Account specific field status group assigned to the G/L account while creating. (Account specific field status groups are summarized under field status variant which is assigned to company code) If the document is posted to a sub ledger a/c, the field status group of the reconciliation a/c is used.

b) Posting key specific field status group.

(The field status HIDE cannot be combined with the field status REQUIRED entry which causes an error.)

14) Document type does not have default posting key or vise versa. For each FI transaction (E.g. Invoice, Credit memo, Out going payment) you can define a document type and default posting key at:

IMG:FI A/cing>F.A.Global Settings>Document>Default values for document processing>Default values.

(E.g. When posting outgoing invoices, you use the document type "DR" and

posting key "01". You can store these specifications in the system. They

are proposed by the system when you call up the corresponding

transaction).

BANK ACCOUNTS

1) Bank Master can be created four ways :

i) When entering Customer/Vendor master records or in the customizing for house banks.

ii) Using the create bank transaction in the accounts payable/receivable master data menu.

ii) The bank directory can be imported from disk/tape using program RFBVALL_O.

iii) Customers using lock box function can create a batch input session that automatically updates customer banking information in the master records.

2) Bank key contains - Bank Master data contains Bank name, Region (State), Address

3) Bank key is assigned to a house bank.

4) GL a/c code is assigned to the house bank along with Account id.

5) Steps to create – House bank

i) Create bank master with bank key (E.g. – 01)

ii) Create House bank (E.g. – ICICI) – Enter House bank id, Country, Bank key, Contact person + telephone numbers.

iii) Create bank a/c – Enter House bank id already created (It will take bank address from already assigned bank key to that house bank id), Bank id (E.g. SB), Description (E.g.-Savings bank a/c), Bank a/c no, Currency, G/L a/c.

iv) Change G/L a/c – in tab -create/bank/interest, enter house bank id and Account id.

Summary

(a) Create -Bank key,

(b) Create house bank id and add bank key.

(c) Create bank a/c with Account id and assign GL a/c.

(d) Modify G/L a/c and assign House bank+Account id.

6) For every bank a/c G/L account must be created. This G/L account is assigned to the bank a/c and vice versa. Both accounts have to have the same account currency.

7) In the Customer/Vendor master record, the field “Bank Type” is used to distinguish between different banks.

8) Using the house bank id and the bank types the payment program determines the banks to be used.

9) Each bank a/c is reflected in the SAP system by a combination of house bank ID and account ID (bank type).

10) The bank group is used for classifying banks. The key is freely assignable. The aim of classification is to group banks together in such a way that payment transactions within a group can be carried out as fast as possible (payment optimization).

11) The SWIFT code is used for identifying banks in international payment transactions.

12) Every bank master record is identified by the bank country and bank key.

Customer/Vendor Account Number

01) Customer/Vendor account masters have three segments.

i) General Data at the client level. (Address/Payment/transactions)

ii) Company Code Segment. (A/c Management/Payment Transaction/ Correspondence/ Insurance or withholding Tax)

iii) Sales (for Customer) /Purchase (Vendor) area segment.

02) The Customer/Vendor account number is assigned at Client level.

03) Customer/Vendor Account group Controls:

i) The Number Range of the accounts.

ii) Whether the account is a one-time customer/vendor.

ii) The status of fields in the master records.

04) Line item Display and open line item management are configured as standard for every customer/vendor account.

05) Customer/Vendor accounts can have either internal or external number assignment.

06) There are separate number ranges for customer and vendor accounts. Number ranges must not over lap for customer/vendor.

07) Each number range can be assigned to one or more account groups.

08) In customer/vendor account groups – account number ranges are assigned by a variant, however in GL account group number ranges are entered for each a/c group.

09) The lay out of Customer/Vendor master data screens can be affected by :

i) Account group specific Field status group.

ii) Transaction-specific field status group.

iii) Company code specific field status group.

10) Field status of a FI transaction in a Customer/Vendor Sub ledger a/c is also controlled by field status variant assigned to reconciliation account master of Customers/Vendors, while creating.

11) Customer/vendor specific data for one-time customers/vendors is entered in the document during posting.

12) Dual Control Principle: If you define a field in the customer/vendor master record as, ‘sensitive’ the corresponding customer/vendor is blocked for payment if the entry is changed.

13) If a customer is also a vendor, or vice versa, the payment and dunning program can clear open items against each other.

14) At the client and company code level, you can enter an alternative payer/payee. The entry in the company code segment has higher priority than the entry at client level.

General Ledger Master Records

1) There are 3 steps to create and use a chart of accounts (COA)
a) Define COA
b) Define the properties of the COA
c) Assign the COA to Company codes.
2) The COAs is a variant that contains the structure and the basic information about general ledger accounts.
3) The Definition of COA contains
a) Four digit COA key.
b) COA Name.
c) Maintenance language,
d) Length of the G/L Account number.
c) Integration with Controlling (CO) – Manual/Auto creation of Cost Elements.
d) Group Chart of accounts.
e) Status – Block indicator.
4) Length of G/L accounts can be from 1 to 10 digits.
5) One COA can be assigned to several company codes.
6) GL Master contains COA segment and Company code segment.
7) The Information entered in the COA segment for a G/L account applies to all company codes using that COA.
8) The Chart of account segment contains following details:
i) Type/Description - Account group.
- P/L or Balance sheet item.
- Description – Short/Long text.
- Group Chart of Account G/L. no.
ii) Key word Translation. – Key words in COA
- Translation.
iii) Information - Info in COAs
- G/L text in COA.s
9) The Company code segment of G/L master contains:
i) Control Data. – Account Control  Only bal in local currency, Exchange rate diff, Tax Category.
A/c Management in Company code.- Open/Line item management,
i) Bank interest
ii) Information.
10) Account Group Controls - Number ranges of the account.
- Status of fields in the company code segment of the master record.
11) Field status has following properties - Hide.
- Display.
- Required entry.
- Optional entry.
12) Fields displayed in G/L account master record are controlled by:
1) Account group
2) Transaction specific controls (Create/Change/Display).
13) Field status group assigned to a G/L codes in Company code segment is to control the field status of the financial transaction entered in that G/L account.
14) While creating Reconciliation account G/L master Reconciliation a/c type needs to be assigned – i.e. D – Accounts receivable or K – Accounts payable
15) You cannot post amounts directly to reconciliation accounts.
16) You can only activate or deactivate open item management if the account has a zero balance.
17) If the account currency is the local currency – the account can be posted to in any currency.
18) Account in Foreign currency as account currency can only be posted to in that foreign currency.
19) The group chart of account is assigned to each operational chat of accounts. If this is done “Group account number” in COA segment of the Operational COAs is a required entry field.
20) Country COA/Alternative COA number is entered in company code segment. This makes alternative G/L a/c field in Company code segment of the G/L master record a required entry.
21) Different accounts of one operational COAs can refer to the same group g/l account. However one country chart of a/c GL code can be referred to only one operational GL a/c.
21) Every country chart of accounts number can only be used once.
22) If all the companies are using the same operational COA then consolidation is possible otherwise Group COA is used for Consolidation.
23) G/L accounts with open line item management must have line item display activated.
24) GL account number ranges are always external where as for customer/vendor it can be internal as well as external number assignment.
25) For Cross company code controlling, companies must use the same chart of a/cs.
26) Number intervals for G/L account master data can overlap.
27) The fields “Account currency” and “Field status Group” are always required entry fields. This status cannot be changed.
28) Reconciliation accounts are general ledger accounts assigned to the business partner master data to record all transactions in the sub ledger.

IMG: Financial A/cing>G/L A/cing>Master records>Preparations >Additional Activities>Define screen layout for each transaction 9Create/Change/Delete)

Currencies

1) For Every combination of two currencies different exchange rates can be maintained which can be distinguished using Exchange rate types:

i) Historical Rate. ii) Bank selling rate. - B

iii) Bank buying rate. - G IV) Average rate. - M

v) The rate on certain key dates.

2) A Currency key must be assigned to every currency used. A currency key can have a validity date.

3) The relationship between currencies must be maintained per exchange rate type and currency pair using translation ratios.

4) For maintaining exchange rates for each exchange rate types, one of the following tools can be used.

a) Inversion

b) Base currency

c) Exchange rate spreads.

5) Using report RFTBFF00/RFTBDF07 (SE38) enables to transfer external market data in multi cash file form to update automatically the exchange rate table.

6) Direct quotation : One unit of foreign currency is quoted for the local currency.

1 US$ = 46 Rs.

Indirect quotation: One unit of local currency is quoted for the foreign currency.

1 Rs. = 0.0217 $

IMG path for defining currency – IMG>General Settings>Currencies>Check Exchange Rate Types

Fiscal Year

1) Fiscal year types.

a) Year Specific/Year dependent Fiscal year.

b) Year independent Fiscal year

1) Calendar Year.

2) Non Calendar year.

2) Fiscal Year Variant only defines the number of periods and their start and finish dates.

3) SAP determines the posting period from the posting date.

4) Posting periods can be defined up to 12 and Special periods up to 4.

5) Posting periods can be up to 999 and Special periods can be up to 99 – Posting periods more than 16 (Including special periods) can only be used for special purpose ledger applications.

6) A shortened fiscal year is a fiscal year having less than twelve months. The definition of a shortened fiscal year is always year-dependent, since it represents a year-related exception.

7) For year specific fiscal year – Posting periods for each fiscal year needs to be defined in configuration with reference to calendar years.

IMG: Financial A/cing>Financial A/cing Global setting>Fiscal Year>Maintain Fiscal year variant.