Basic Settings Fico - Zaran.doc

Course Description The SAP Financial Accounting (FI) module provides integrated, online, real-time functionality for processing, recording and maintaining the financial accounting transactions of the business for external reporting purposes. Objectives of FI: Provides a general overview of the Financial Accounting module and its sub-modules  Highlight the various integration points among the Financial Accounting sub-modules and other SAP Modules.

The SAP Controlling (CO) is used by the Management of the Business Organization for the purpose of Planning and for Decision – Making purpose. Controlling module is Internal Reporting activity of the Business Organization. In this Controlling module, the data is flown from Financial Accounting, Material Management, Sales Distribution and other modules of SAP Copyright© 2016, ZaranTech LLC. All rights reserved

Objectives of CO: Acts as a tool for the Management of the Business Organization for the purpose of Planning and Decision Making  It is closely integrated module with other SAP Modules.

CONTENTS:Creation of Company ………………………… Definition of Company Code …………….. Assignment of Company Code to Company………… Definition of Business Area Definition of Fiscal Year Variant Assignment of Fiscal Year Variant to Company Code Definition of Chart of Accounts Assignment of Chart of Accounts to Company Code Copyright© 2016, ZaranTech LLC. All rights reserved

PAGE NO: 1 2

Defining of Account Groups Definition of Retained Earnings Account Definition of Posting Period Variant Assignment of Posting Period Variant to Company Code Opening and Closing of Posting Periods Creation of Number Ranges and Document Types Defining of Field Status Variant Assignment of Field Status Variant to Company Code Defining of Tolerance Group to Employees Dfining of Tolerance Group of Accounts Assign Users to Tolerance Groups Global Parameters

BASIC SETTINGS - FI/CO

1. Project creation Step 1.1: Creation of company Meaning: - COMPANY: Company represents the group. It contains up to 6 characters. It is alpha numeric. The definition of company is optional. A company can have any number of company codes Navigation:- SPRO Enterprise Structure Definition  Financial Accounting  Define Company (T. Code: OX15) Click on “New entries” Company Company name City Country Language Key Currency

=KK11MM =KK11 Gayathri Group of Companies =Bangalore =India =English = INR

Click on “save” Click on “Create request” Short description = Click on “save” and click Enter Note:- Organizational structure consists of Group of company, in the company group there will be companies and in the company there will be company codes Step 1.2: Define company code Meaning: It is the organizational unit in the financial accounting for which a complete set of books of accounts are maintained for external legal reporting i.e. to prepare the legal financial statements. It is four-character id. It is alphanumeric. SPRO  IMG Activity  Enterprise Structure  Definition  Financial Accounting  Edit, Copy, Delete, Check Company Code (OX02) Double click on: “Edit Company code data” OX02

Click “new entries” Company code Company name City Country Currency Language Click on “save”

=KK11 = Gayathri Group of Companies =Bangalore =India =INR =EN

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Title = Gayathri group of Companies Country = India Click on “save” and Click on Enter on the Request message. Step no 1.3: Assign company code to company OX16 Under this activity, we are going to link or assign the Company to Company Code which we have created in Step 1.1 Navigation:- SPRO – IMG – Enterprise Structure  A ss ignment  Financial Accounting  Assign Company Code (T. Code: OX16)

Click on position, Company code Click on Enter Company

=

=

KK11 KK11

Click on Save

Note: - If any company code is a part of your company created then add the company name in the company & save Step1.4: Define Business area. BUSINESS AREA: - It is the organizational unit in the financial accounting which structures the organization according the geographical area of operations or the line of activity to which the business transactions can be posted. The branches of the organization can be taken as the business area. The purpose of the business areas is to prepare the financial statements for the internal management analysis purpose. The definition of the business areas is optional. The system identifies the expenses and incomes with the business areas by specifying the business area while entering the business transactions in the documents. The business areas are not assigned to any company code. The business areas are created at client level. This enables any company code can use the same business area. Path: SPRO - Enterprise structure-definition-financial accounting-define business area T. Code: OX03

Business area Description

= Bangalore = Bangalore H.O

Click “save” 2. Fiscal year variant Step2.1: Define Fiscal year variant Variant: - It is an object for which some values are defined. When this object is assigned to another object then the values are also applicable to that other object. It is called Variant principle. The variant principle is widely used in SAP. (Ex: V3 is object, values are 12 months and 4 special periods, and is called as variant) Path: SPRO-financial accounting-financial accounting global settings-fiscal Year-maintain fiscal year variant - T code – OB29 Click on Position

Identify the variant i.e. V3 (April to March) V6 (July to June) Select the required variant Click on copy icon or (F6) replace this variant with your own naming convention and click on save Step2.2 Assign Company code to Fiscal year variant Path: same as above- T code – OB37

Click on “position”, company code=KK11 Fiscal year variant = M4

click enter Click on Save

If any warning messages are displayed ignore the warning message by clicking on enter button in the key board. 3Chart of accounts: Combination of all the G/L accounts is called COA. There are 3 types of COA a. Operating COA:b. Group COA: - It contains the list of all general accounts used by the corporate group to prepare the consolidated financial statements. c. Country specific COA: - It contains the general ledger accounts required to meet the country specific legal requirements. CHART OF ACCOUNTS Chart of accounts is the list of general ledger accounts used by the organization. It is

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compulsory to define the chart of accounts before creating the general ledger master record. There are three types of chart of accounts. 1. OPERATIONAL CHART OF ACCOUNTS: It is the list of the general ledger accounts used by the company code in to which all the daily business transactions are posted. From this chart of accounts the financial statements are prepared. It is compulsory that every company code should be assigned with one operational chart of accounts. 2. COUNTRY SPECIFIC CHART OF ACCOUNTS: It is the list of general ledger accounts used to meet the country specific legal requirements. 3. GROUP CHART OF ACCOUNTS: It is the list of general ledger accounts used by the entire corporate group to prepare the consolidated financial statements. The definition of the group chart of accounts is optional. The chart of accounts contains the data for every general ledger account such as name of the account, number of the account, account group and maintenance language etc. A chart of accounts can be used by the one or more company codes. In this case the name of the account, account number and account group is same in all company codes. This is possible when all the company codes are lying in the same country. A company code can be assigned with two types of chart of accounts. I.e. operational chart of accounts and country specific chart of accounts. Step3.1: Define chart of accounts. Path: SPROfinancial accountinggeneral ledger accountingG/L accountsMaster recordspreparationsedit chart of accounts list – T. code OB13 Click on “new entries” Chart of accounts =KK11 Description = KK11 COA (Chart of accounts for KK11) Maintenance language = En Length of GL A/c No = 06

Click on Save Step3.2: Assign company code to chart of accounts - T code- OB62

Path: same as above. Click on “position”, company code= enter Chart of accounts = KK11 Save

click Click on

Step3.3 Define account groups- T codeOBD4 All the general ledger accounts of the organization are classified in to different groups for the easy and convenient management of GL accounts. These are called the account groups. The GL account master records are created under the respective GL account group. For this we assign the number range for every GL account group. At the time of creating the GL account master records we select the a number from the number range of the accounts group under which the GL account master records is created and give to the GL account master record. The following are the functions of the gl account groups. 1. To control the number to be allotted to the general ledger master record created under the respective group. 2. To control the display of fields to be maintained in the general ledger master records created in the respective group. i.e. Whether every field is required or optional or displayed or suppressed. There is no limit to the maximum no of gl account groups. But the there should be minimum two-gl account groups .i.e. balance sheet account group and profit and loss accounts group. We can add the gl account groups during the fiscal year if the need arises. We can delete the gl account group provided no accounts are created in that group. Copyright© 2016, ZaranTech LLC. All rights reserved

Path: same as above Click on “New Entries” Chart of Account Group Accounts SCPL RSPL ACDN SCLN UNSL CLPR FAST CAST SALE OTHR INCR RMCN PRSN MFRG ADMN INTR DEPR

Name

From A/c To A/c

Share capital Reserves and surpluses Accumulated depreciation Secured Loans Unsecured Loans Current Liabilities & Provisions Fixed Assets Current Assets, Loans & adv Sales Other Income Incr/decr of stocks Raw material consumption Personnel cost Manufacturing cost Administration cost Interest Depreciation

100000 100100 100200 100300 100400 100500 200000 200100 300000 300100 300200 400000 400100 400200 400300 400400 400500

100099 100199 100299 100399 100499 100599 200099 200199 300099 300199 300299 400099 400199 400299 400399 400499 400599 Click on save

Step3.4: Define Retained Earnings Account T code OB53 While creating the expenses accounts and incomes accounts we have to specify the profit and loss account type. For this it is compulsory to create one retained earnings account. We can define any no of profit and loss account types. For example operating profit and loss a/c to know the operating profit and non operating profit and loss account to know the non-operating profit or loss. At the year end the balances in these profit and loss accounts are taken to the Balance sheet. Path: above

same

as

Chart of accounts KK11

=

click enter P&L statement a/c type = X

Account

=

100100

Click on Save

Warning message appears. Ignore it by clicking on Enter again. BIL: - Balance carried forward

4.Posting Period Variant The posting periods are defined in the fiscal year variant. To prevent documents from being posted to wrong posting period, desired periods can be closed. Usually the current posting period is open and all other periods are closed. At the end of period it is usually closed and the next period is opened. A period is opened by entering a range into the posting period variant which encompasses this period. It is possible to Copyright© 2016, ZaranTech LLC. All rights reserved

have as many periods open as required. During the procedure of financial closing, some special periods may also be open for closing postings. The following activities are involved in the maintenance of the posting period variant 1 Define the posting period variant 2. Assign the posting period variant to the company code 3. Open and close posting period. Step.4.1: Definition of posting period variant Path: SPROfinancial accountingfinancial accounting global settingsdocument  Posting periodsdefine variants for open posting periods T. Code:- OBBO Click on “new entries” Variant = Name =

KK11 Posting Period for KK11

Click on “save” Step 4.2: Assign posting period variant to company code

T. Code:- OBBP

Path: same as above. Click on “position” button Company code = Variant =

KK11 KK11

Click enter Click on Save

Step4.3: open and close posting periods T. Code: - OB52 Path: same as above Click on “new entries” Variant Account type

= KK11 =-

(to open the Normal posting periods) From period 1 = 01 (April) To period = 12 From period 2 To period

= =

13 16

year year

year = 2016 year = 2016 = 2016 = 2016

Click on save 5. Creation of number ranges for document types

T. Code: - FBN1

DOCUMENT TYPES AND NUMBER RANGES The business transactions are posted in to the system through an accounting process called “posting”. As evidence of posting, a record is generated and stored in the database. This record is called DOCUMENT. There are two categories of documents. 1. Original documents. These include the vouchers, check book, purchase invoices, copies of sales invoices and receipts. These a r e t h e b a s i s f o r entering b u s i n e s s transactions in to the system. 2. Processing documents. These include the recurring documents, sample documents, and accounting documents. The accounting documents represent the posting of original documents into the system. Every accounting document contains two parts. 1. Document Header. This part contains the data such as document date, posting date, posting period, currency, company code, DOCUMENT TYPE. Etc. 3. Document line item part. Rent

a/c Dr

10000 (line item no 1)

To cash a/c 10000 (line item no 2) A document can contain up to 999 line items. The document line item part contains the data such as posting key, gl account no. and amount etc. for every line item. The document type controls the following. 1. The number to be assigned to the document 2. It differentiates the business transactions among the account types and for every account type it differentiates among the nature of business transactions. The document types are defined at the client level and are therefore valid for all company codes. The standard system is delivered with documents types which can be used, changed or copied. The number ranges for document types are defined at company code level. Copyright© 2016, ZaranTech LLC. All rights reserved

Step: creation of number ranges for document type “SA” Path: SPRO-financial accounting-financial accounting global settings-documentDocument header-define document types- T code OBA7 Click on “position” Document type = Select ”SA”

SA

click enter

document type line

Click on “details” button Notice the properties of “Number range” (i.e. . Serial number of number range) Click on “Number range information” Company code

=

KK11

Click on” (change) intervals” button Click on “(insert) intervals” button No = 01 Year = 2016 From number = 1 To number = 100000

Click on “insert (enter)” button Click on “save” and OK” button on the warning message. 6.Field

Status Variant T. Code:- OBC4

During document entry, different fields are displayed depending on the transaction and the account used. For example, when posting expenses, cost center and tax information is usually required. However, when posting cash, this same information is not necessary. These different displays during document processing are controlled by the field status. For each category of general ledger account, e.g., cash accounts, expenses accounts, you need to determine the status of every document entry field. Will text be required, suppressed or optional for document entry when using these gl accounts? Will cost center be required, suppressed or optional for document entry when using these gl accounts? Etc., etc. these “rules” are grouped in to field status groups for each category of general ledger accounts. The field status groups are collected under one field status variant.

The field status variant is assigned to the company code. No posting can be made until this is complete. R/3 delivers a standard set of field status group. It is recommended to copy the standard delivered field status groups and modify as necessary. For every field we can maintain only either of the following status. 1. Suppressed status: if this is selected then that particular field is hidden in the document while posting the business transaction. 2. Required status: if this is selected for a field then it is compulsory to give the information in that field. 3. Optional status: if this selected for field then that field is displayed in the document but we may or may not provide the information in that field. In short the field status variant controls the display of fields to be entered at the time of posting the transactions to the gl accounts (at the time of the document entry) All the fields in which we can enter the information at the time of the document entry are grouped in to 41 groups which default delivered along with the soft ware. We have to copy all these groups in to our field status group and make necessary setting. Step6.1: definition of field status variant Path: SPRO-financial accounting-financial accounting global settings-DocumentLine item-controls-Maintain Field status variant Select “0001” field status variant line Click on “copy as” button

FSTV

=

Field status name = click enter Click on “copy all” button and click enter on the message Select”--------“field status variant line created above Double click “field status groups” Double click on the field status group “G001” Double click “General data” Select “Required entry” option against “Text” field.

Click on Save

Double click on field status group “G001” Double click “additional account assignments” Select “Required entry” option against “Business area” field Copyright© 2016, ZaranTech LLC. All rights reserved

Click on Save

Double click on field status group “G005” Double click on “General data” Select “Required Entry” option against “text” field

click save

Double click on field status group “G005” Double click “additional account assignments” Select “required entry” option against “Business area” field

Click on Save

Double click on field status group “G005” Double click on “payment Transactions” Select “Required entry” option against “value date” Click on Saves Step6.2: Assign company code to field status variant Path: same as above Click on “position” Company code Field status variant

T. Code O B C 5 = =

click enter Click on Save

7. Tolerance groups Tolerance groups for gl accounts: setting the maximum limits equal to which or below which the differences in balance sheet gl accounts are automatically taken to the profit and loss account or some predefined account like sundry balances written off a/c. based on the requirements of accounting department we define different tolerance groups and we assign them in the respective gl account master records. Based on the limits specified in those tolerance limits, the differences in that gl account is automatically transferred to profit and loss account. The limits are applied at account level not for the every transaction level in that gl account

A tolerance group can be assigned in any number of gl account master records. But a gl account master record can be assigned with only one tolerance group. The upper limits can be specified either for the debit difference or for credit difference separately. Tolerance group for employees: For the employees of the accounting dept. we define the upper limits for posting procedures. The following are the posting procedures. 1. The amount of a document an employee can post into gl accounts, vendor accounts, customer accounts and asset accounts 2. The amount of the open item he can deal with 3. The percentage of cash discount he can offer or post 4. The amount of payment difference he can accept. Step7.1: Define tolerance groups for G/L accounts T . Code:- OBAO Path: SPRO: - financial accounting-general ledger accounting-business Transactions-open item clearing-clearing differences – define tolerance groups for G/L accounts Click on “new entries” Company code = KK11 Tolerance group =A Name = T o l e r a n c e group for A

Click on “save” Step7.2: define tolerance groups for employees Path: same as above

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T. Code:- OBA4

Click on “new entries” Group = Company code = KK11 Amount per document = 99999999 Amount per open item = 9999999 Cash discount per line item = Click on Save Step7.3: assign users to tolerance groups Path: same as above

Click on “new entries” User name = s a p user Tolerance group = Click on Save 8.Global parameters Step: enter global parameters

T. Code:- OBY6

Path : SPRO-financial accounting – financial accounting global settings – company Code – enter global parameters Click on “position” button Company code = click enter

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Select “ “company code line Click on details button Select “Business area financial statements” Select “propose fiscal year” Select “define default value date” Select “negative postings allowed” Click on Save