Chanu SK SAP Coach Training Institution

(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,

FinTech Skill Academy

Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

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 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

INDEX
S.NO CONTNETS P.NO

1 P2P PROCESS 3

2 FI-MM INTEGRATION 4

3 DOCUMENT SPLITTING 8

4 SD /O2C PROCESS 21

5 FI-SD INTEGRATION 24

6 ELCTRONIC BANK STATEMENT 26

7 OPEN ITEM MANAGEMENT

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8 MT940 45

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9 GOODS AND SERVICES TAX (GST) 50

10 WITHHOLDING TAX (TDS)

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ASSET ACCOUNTING
CUTOVER ACTIVITIES

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111

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MONTH END & YEAR END CLOSING ACTIVITY
ASSET UNDER CONSTRUCTION INTERNAL ORDER
119
125

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15 IMPORTTANT TABLES 126
16 GR/IR CLEARING PROCESS 130
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FOREIGN CURRENCY REVALUATION 136
18
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VALUATION & SUBSTITUTION

F IDOC
ORGANIZATION STRUCTURE COMPANY
138
140
142
21 LEADING AND NON LEADING LEDGER 144
22 BASIC QUESTIONS 145
23 INTREST CALCULATION 154
24 APP 157
25 NEW GENERAL LEDGER 182
26 TABLES 188
27 ASAP METHODOLOGY 191
28 DURING CUTOVER ACTIVITY ASSET UPLOAD 194
29 DUNNING 197
30 ASSET UNSER CONSTRUCTION 215
31 LSMW 235
32 S/4 HANA CHANGES 245

2
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

P2P PROCESS:
P2P is the Process of Obtaining and Managing the Raw Material Needed for Manufacturing
Product and Providing Services.
P2P CYCLE:

MATERIAL
PURCHASE REQUEST FOR
REQUIREMENT
REQUISITION QUOTATION
PLANNING

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VENDOR
SELECTION
PURCHASE
ORDER
ca GOODS RECEIPT

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INVOICE RECEIPT S
PAYMENT

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VENDOR
RECONCILIATION

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1.MATERIAL REQUIREMENT PLANNING: Material Requirement Planning Figure Out What

Material Valuation. F i
Supplied Material You Will Need and When You Will Need. It Controls MRP Procedure, Pricing,

2.PURCHASE REQUISITION: Every Organization May Have Deferment Types of Departments

Every Department May Require Certain Goods and Services Employee Belongs to That
Department Raise the Purchase Requisition. Purchase Requisition May Also Needs to be
Approved by The Department Head Before Initiating the Approval Finance Department Once
Finance Team Approves the Purchase Requisition Purchasing Group Creates a Purchase Order
for Purchasing Department to Act on It.
3.REQUEST FOR QUOTATION: Requesting Potential Vendors to Submit a Quotation for Goods
and Services. Quotation Contains Vendor Terms and Conditions.
4.VENDOR SELECTION: Vendor Selection Is the Most Important Step P2p Process with The Help
of Obtained Quotation from Sources by Comparing the Vendors Are Selected.

3
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
5.PURCHASE ORDER: Once Purchase Order Is Created Purchasing Department Initiates
Procurement Process. Purchase Department Issues Purchase Oreder to Vendor. Vendor
Supplied Goods and Bills to The Company Accordingly. Purchase Order May Have the
Information Like Order Type, Vendor, Material, Quantity, Purchase Price, Delivery Date, Terms
of Payment. (Purchase Order T- Code: ME21N)
6.GOODS RECEIPT: When Organization Receives Goods, Goods Receipt Posted in Sap Using The
T-Code: MIGO. Accounting Entry for Goods Receipt Is Follows
INVENTORY A/C DR 1000
TO GR/IR CLEARING A/C 1000

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7.INVOICE RECEIPT: When Organization Receives Invoice Receipt, Invoice Receipt Posted in Sap

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Using The T-Code: MIRO. Accounting Entry for Invoice Receipt Is Follows
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GR/IR CLEARING A/C DR 1000
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TO VENDOR A/C
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1000 A
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8.VENDOR PAYMENT: Payment Can Be Done Through Manually (F-53) Or Automatically(F110)
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VENDOR A/C

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DR 1000

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TO BANK CLEARING A/C 1000

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9.RECONCILIATION: After Receiving of Bank Statement. Bank Statement Is Uploaded in Sap
Automatic Reconciliation Happens We Have Accounting Entry Is Follows.
BANK CLEARING A/C
F i DR 1000
TO MAIN BANK A/C 1000
FI-MM INTEGRATION:
Material Management Is the Costing Unit for Every Organization. Each and Every Activity Which
Spent Money Should Be Captured by Finance People.
Up to Purchase Order There Is No AccountinAt The Time Goods Receipt Fi-Mm Integration Will
Be Happen Using The T- Code: OBYC
Based On Factors Fi-Mm Integration Will Be Happen Those Factors Are.
1.MOVEMENT TYPE 2. VALUEATION CLASS 3. TRANSANCTION KEYS 4. VALUEATION MODIFIER
5.MATERIAL TYPE.

4
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
1.MOVEMENT TYPE: All Material Movements in Material Management Happens with Respect to
Movements Types
✓ Goods Receipt Movement Type - 101
✓ Reversal for Goods Receipt Movement Type – 102
✓ Return of Goods to Vendor Movement Type -122
✓ Return of Goods to Vendor for Unknown Reason -161
✓ Goods Issued to Production Order Movement Type – 261
✓ Scraping of Goods Movement Type -551
✓ Goods Issued to Production Order Movement Type – 601
✓ Off Setting Entry for Stock Posting – 561

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2.VALUEATION CLASS: Each Material Should Have Valuation Class Whether It Is Raw Material,
Semi-Finished Goods, Finished Goods.
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3000 – Raw Material
7900 – Semi Finished Goods ca
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7920 – Finished Goods

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Note: Valuation Class and Movement Type Determines the GL Accounts
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TRANSANCTION KEY: Transaction Keys Are Used to Control Storage & Filling of Document
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and Assignment of Documents.
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Stock Posting – BSX
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GR/IR Clearing – WRX
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Price Difference – PRD
Off Setting Entry for Stock Postings – GBB
Freight Clearing –FRI
Consignment Liabilities – KON
VALUEATION MODIFIER: Valuation Modifier is also known as Valuation Grouping Code You Can
Activate Valuation Modifier Using T–Code: OMWM. We Can Maintain Valuation Grouping Code
using T–Code: OMWD
It Is Mandatory to Maintain Valuation Modifier, Even If You Have One Valuation Area That Should
Be Assigned to Valuation Modifier.

5
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
MATERIAL TYPE: Each Material Should Assign Material Type in Material Master Record
It Is Used to Update Changes Made in Quantity Are Updated in Material Master Record
And Change in Value Also Updated in Stock Account.
Raw Material – ROH
Semi-Finished Goods – HALB
Finished Goods – FERT
Trading Goods – HAWA
Difference between Valuation Modifier and General Modifier
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Valuation Modifier: Valuation Modifier is used to reduce number of entries posted in OBYC
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General Modifier: General Modifier is used with three Transaction keys like GBB, PRD, KON
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General Modifier Helps to post Different GL Accounts with Same Transaction Key.

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Types of Purchase Orders in SAP FICO
Scenarios Based on Purchase Price Variance
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Scenario-1: On 12/01/2022 Purchased Order Placed for 10 qty @10Rs Each on13/01/2022 Goods
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Issued against sales order.
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Receipt received for 10qty@10Rs Each.at the time of Invoice receipt 10qty@12Rs Each. No stock

Goods Receipt (MIGO):

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12/01/2022
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Inventory A/ci DR 100
To GR/IR Clearing A/C 100
No Stock issued against Sales Order: No entry

Invoice Receipt (MIRO):

13/01/2022 GR/IR Clearing A/C DR 100
Inventory A/C 20
To Vendor A/C 120

6
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
Scenario-2: On 12/01/2022 Purchased Order Placed for 10 qty @10Rs Each on13/01/2022 Goods
Receipt received for 10qty@10Rs Each.at the time of Invoice receipt 10qty@12Rs Each. Stock
Issued against sales order 5qty.
Goods Receipt (MIGO):
12/01/2022 Inventory A/C DR 100
To GR/IR Clearing A/C 100
Stock issued against Sales Order 5qty:
13/01/2022 Cost Goods sold A/C DR 50
To Inventory A/C 50
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Invoice Receipt (MIRO):
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19/01/2022 GR/IR Clearing A/C DR 100
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Inventory A/C DR 10
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Purchase Price Variance
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DR 10
To Vendor A/c

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Scenario-3: On 12/01/2022 Purchased Order Placed for 10 qty @10Rs Each on13/01/2022 Goods

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Receipt received for 10qty@10Rs Each.at the time of Invoice receipt 10qty@12Rs Each. Stock
Issued against sales order 10qty.

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Goods Receipt (MIGO):
12/01/2022 F
Inventory A/c
i DR 100
To GR/IR Clearing A/C 100
Stock issued against Sales Order 10qty:
13/01/2022 Cost Goods sold A/C DR 100
To Inventory A/C 100

Invoice Receipt (MIRO):

19/01/2022 GR/IR Clearing A/C DR 100
Inventory A/C DR 10

7
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
Purchase Price Variance DR 10
To Vendor A/c 120
Invoice Receipt (MIRO):
19/01/2022 GR/IR Clearing A/C DR 100
Inventory A/C DR **
Purchase Price Variance DR 20
To Vendor A/c 120

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DOCUMENT SPLITTING:
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In SAP ERP the document splitting is the most powerful tool is widely and most commonly used.
With this function the document splits the line items based on the “Characteristics” we define in
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system. Often this function is used to get the financial statements correctly for segment
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reporting.
Back to the Basics –
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Concept can be explained of document splitting with the help of one of the most basic business
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transaction as “Vendor Invoice”. Suppose we have vendor invoice as below which consists of two
expense line items say 10,000 in total with 1,000 of tax component which sums to 11,000.

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1. Expense Item 1 for 8,000 where it is assigned to PC – X
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2. Expense Item 2 for 2,000 where it is assigned to PC – Y
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Account Amount Profit Centre
Vendor A/C -11,000
Expenses 1 8,000 PC – X
Expenses 2 2,000 PC – Y
Input Tax 1,000
If any person is responsible for PC – X wish to analyze the transactions performed for PC – X, but
unfortunately the user can’t – because of, if you look at the transaction the “Vendor Balance” and
“Input Tax” is cumulative and hence is not assigned to any of the profit center either X or Y.
Now if you look at the transaction above it represents that the total expense is distributed in the
ratio of 80% and 20% and same of Profit Centre of X and Y. So base to this the Vendor Balance and
Input Tax should also have split according to 80%-20% rule.

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 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

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As per the above image the system should have posted the document as per below financial
transaction entry in system –
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Okay so the conclusion for whole exercise is, if the user can post the document as above, the
reporting will be pretty particuar and balanced and there won’t be a problem – issue is re-solved.
Its easily said that issue will be solved but why any user will separate the line item as per
calculations and split its bases always on its ratio, especially when there are 100’s of line items
sometimes in any document ! And what if system takes care of this?
Well the answer is Yes, and that’s what the document splitting is all about!
Now we will understand the Document Splitting elements and key concepts –
9
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

• Passive Splitting – This type of splitting is mostly occurs when the payment transaction
is posted for a vendor invoice. Now system splits the payment document bases on how
the vendor invoice was split in place already.

• Active Splitting – In Active Splitting the document is split according to mySAP ERP
predefined rules. SAP almost supports all the business process transactions but if it
doesn’t suit to any requirement the own splitting rules can be created.

• Zero Balancing Splitting – When the amounts within financial documents are not able to

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balance out to Debit of Profit Centre and Credit of Profit Centre which does not Net Off as
its own, SAP then automatically generates new line item to balance the document. We
will see the example in following section of this scenario.
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Item Category – Item category categorizes the general ledger accounts for document
splitting. In the configuration each GL account is assigned to item category. Just to name
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a few like 01000 – Balance Sheet Account, 02000 – Customer, 03000 – Vendor and so on.
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Business Transaction – Business transaction is real scenario of business processes
happens in organization such as vendor invoice, customer invoice etc.

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Business Transaction Variant – In the SAP, financial postings are derives the item

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category for individual line item. Business transaction variant always works in
conjunction with business transaction where business transaction restricts the

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business processes to be posted to. System validates a check all postings against the

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item category to validate if these postings are allowed by splitting rule if not then
understand this failed.

• Document Splitting Method – Document splitting method works in combination with

business transaction and business transaction variant it determines the document
splitting rule.

• Document Splitting Rule: Document splitting rule determines which item categories will
be split and from which item categories it will derive the account assignment.

Let us see the actual example from system of Document Splitting for vendor invoice –

10
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
If we are posting an invoice from FB60 with two different expenses line item as below with two
different cost centers assigned now system has derived the profit center from its cost centers
mentioned in line item.

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Simulate this document to see pre-posting view with line item and associated assignments.

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 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

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Now press F3 or Back button and come to main screen. Now go to Menu Bar Document –>
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Simulate with General Ledger to see the ledger view of this document.
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Once clicked on simulate with general ledger, document can be seen as below as “Document
Split” functionality.

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 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

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Document Splitting – Zero Balancing
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As discussed above when system is not able to balance out the transaction entry based on its

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own it balances out by “zero balancing” account. System adds the zero balance account at its
own to make balance zero for transaction. We will see the example for this now –
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We will post the transaction via FB50.

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13
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

Now simulate this with General Ledger View as below

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If you look at above and notice simulated “General Ledger View” system has automatically
generated the “Zero Balance Clearing A/C.”
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Now let us look at the configuration of document splitting –
1. Classify GL Accounts for Document Splitting –

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SPRO –> SAP Reference IMG –> Financial Accounting (New) –> General Ledger Accounting
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(New) –> Business Transaction –> Document Splitting –> Classify G/L Accounts for
Document Splitting

Here in this step GL’s are classified according to item categories according to business
transaction nature. It is recommended that instead of assigned item category to each individual
general ledger account try maintaining the item categories for “Range of General Ledger
Accounts”.

14
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

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2. Classify Document Types for Document Splitting –

SPRO –> SAP Reference IMG –> Financial Accounting (New) –> General Ledger Accounting
(New) –> Business Transaction –> Document Splitting –> Classify Document Type for
Document Splitting

In this step the “Business Transaction” and “Business Transaction Variant” is assigned to
document types. Now almost every financial transaction in considered for document splitting.

15
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

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3. Define Zero Balance Clearing Account –

SPRO –> SAP Reference IMG –> Financial Accounting (New) –> General Ledger Accounting
(New) –> Business Transaction –> Document Splitting –> Define Zero Balance Clearing
Account

In this step we have to define the zero balance clearing account which will be used to
generate and balance out financial entry when it is not possible to balance out at its own, as we
have seen this example earlier.

16
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

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4. Define Document Splitting Characteristics for General Ledger Accounting –
SPRO –> SAP Reference IMG –> Financial Accounting (New) –> General Ledger Accounting
(New) –> Business Transaction –> Document Splitting –>Define Document Splitting
Characteristics for General Ledger Accounting

This is one of the most important configurations step in document splitting. In this step we have
to define the splitting characteristics. Additionally you can define whether this should be Zero
Balance and Mandatory.

17
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

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5. Edit Constants for Non Assigned Processes –

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SPRO –> SAP Reference IMG –> Financial Accounting (New) –> General Ledger Accounting
(New) –> Business Transaction –> Document Splitting –>Edit Constants for Non Assigned
Processes
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In this step the constants are defined which helps to assigned the default account
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assignment when is not able to derive from any of the sources.

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18
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

6. Activate Document Splitting

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SPRO –> SAP Reference IMG –> Financial Accounting (New) –> General Ledger Accounting

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(New) –> Business Transaction –> Document Splitting –>Activate Document Splitting
Finally, the step to activate document splitting with additional settings like “Inheritance” and
Activation of Document Splitting.
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delivered method is “0000000012”.
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Select check box “Document Splitting” and apply appropriate method. SAP Standard pre-
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Selecting the Inheritance signifies the line items which do not have account assignment will

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derive the account assignment from other line item.
Selecting Standard A/C Assgnmnt means system will set the standard account assignment for

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non-assigned line items. When this indicator is selected “Constant” needs to be maintained.

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Activate of Document Splitting happens at client level but it is always possible to control of
activation and deactivation at company code level.

19
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

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 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
• Customer Inquiry
• Quotation for customer inquiry
• Sales Order creation
• Post Goods issue (PGI)
• Delivery
• Billing- Bill sent to customer
• Receipt of money- Customer Payment

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21
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

OTC Process
Transaction Code Accounting Entries
Steps
Inquiry VA11 No
Quotation VA21 No

Sales Order VA01 No

Post Goods
VL01n Yes
Issue (PGI)

Delivery VL01n Yes

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Billing VF01 Yes
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Receipt of
Money
FB50 Yes
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Inquiry: A customer inquire about the product price and service. This is a very starting point of

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OTC process. This process does not have any effect on general ledger accounts and do not have
any accounting entries. Once a customer creates inquiry, an inquiry number is generated.
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Inquiry is created by transaction code VA11.
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Quotation: Quotation is a price quote given to the customer. A quotation follows inquiry steps. A
quotation can be created via inquiry or without inquiry reference number. A quotation is created
by transaction code VA21.
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Sales: According to some SAP experts, Sales order is actually the first step of OTC process.
After inquiry and quotation, once it's gets created. Sales order can be created with reference of
quotation or without reference. It does not make any accounting book entry and it does not
make any change in General Ledger accounts. It is just a commitment to deliver goods to the
customer. SO can be created with transaction code VA01.
Post Goods Issue: Post goods issue is the steps where goods are being picked by warehouse,
packed and shipped to the customer's given shipping address as per the sales order. We have
accounting entries as inventory is being credited against the cost of goods sales (COGS)
debited. General ledger accounts associated with the cost of goods sales and inventory is
affected respectively.

22
 Chanu SK SAP Coach Training Institution
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(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
Delivery: Delivery follows post goods issue (PGI).Delivery is the actual fulfillment of goods to
the customer shipping address. At delivery stage, we have accounting entries in the books. At
this stage, we debit revenue account and credit customer account. Transaction code for
delivery is VL01n.
Billing: At billing stage, we send the bill to customer for the goods delivered. We have
accounting entries at this stage where we debit customer and credit cash account. Transaction
code for billing in SAP is VF01.
Journal Entries
(1) Sales Order creation (T-code: VA01)

Here no accounting document gets generated.

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(2) Creating outbound delivery (T-code: VL01N)
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Even here no accounting document gets generated
ca
(3) Post Goods Issue(VL01N)
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Accounting Entry:
k i l
Cost of Goods Sold A/C Dr. XXXX
To Inventory A/C CR XXXX h S
e c
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(4) Creation of Billing document (T-code: VF01)
Accounting entry:
F i
Customer A/C Dr XXXX
To Sales A/C Cr XXXX

5) On the receipt of amount from Customer

Bank Clearing Acccount Dr XXX
To Customer A/c Cr XXX

23
 Chanu SK SAP Coach Training Institution
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(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

m y
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FI-SD Integration
l
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1. Sales Order –((Tcodes: VA01, VA02, VA03,)

(Tables: VBAK, VBAP etc). e c

A customer orders some items from your company by creating a Sales Order

n T
F i
2. Outbound Delivery Document -(TCodes: VL01N, VL02N, VL03N)
Your company decides to deliver the items ordered by the customer. This is recorded by
creating an Outbound Delivery document (with/without Order reference) (Tables: LIKP,
LIPS etc).

3. Post Goods Issue (PGI) (Tcode: VL02N)

Once the items are available for sending to the customer, you Post Goods Issue (PGI)
which reduces your inventory and puts the delivery in transit. This will create a material
document. You will post goods issue using VL02N but the material document created will
be stored in tables MKPF, MSEG.

4. Shipping Document - (Tcodes: VT01N, VT02N, VT03N)

You will then create Shipment Document to actually ship the items. (Tables: VTTK, VTTP
etc).

24
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

5. Sales Billing Document – (SD -TCodes: VF01, VF02, VF03) (FI-Tcode: Sales Invoice – F-
22/FB70)
You finally create a Sales billing document. (Tables: VBRK, VBRP etc). This will have a
corresponding accounting document created that will be in BKPF, BSEG tables.

6. Customer Payment Invoice –(Incoming Payment – F-28)

When Customer Payment invoice, it will directly hit your AR account in FI.
SD Cycle:
Quotation >> Sales Order >> Delivery Note >> Invoice (Billing)>>Payment

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FI Entries in SD cycle:
1. Sales Order Created
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---No Entry---
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2. PGI done (Post Goods issue) –
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Cost of Goods Sold (COGS)
To Inventory Account
Dr
Cr
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(Configured in OBYC GBB T-Key)
(Configured in OBYC BSX—Tkey)

h S
3. Billing document released to Accounting (Sales Invoice – f-22/fb70)
Customer Account
To Sales Revenue Account
Dr
e c Cr (ERL T-key in Pricing procedure)
T
Note: The GL account is assigned to this ERL in VKOA
n
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4. Payment Received (Incoming Payment Invoice – f-28)
Bank Clearing A/c Dr
To Customer A/c Cr

Configure Steps
FI - SD
1. Assign GL Accounts (VKOA)
We allocate G/L accounts for revenue account determination. You have to make the allocation
for every access sequence you have defined beforehand.
A variety of criteria is valid for a G/L account, depending on the key combination. For the key
combination "Customer account determination group/Account key" a G/L account depending
upon the following criteria, is given:
1. Application - V (Sales & Distribution)
2. Condition type - KOFI (Account Determination)

25
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
3. Chart of accounts (from module FI)- 1105
4. Sales organization - 1105
5. Account Assignment group for Customer - 01 (Domestic Revenue)
6. Account Assignment Group for Material - 03 (Finished Goods)
7. Account Key - ERL (Sales Revenue)
8. GL Accounts - 300000 (Sales Revenue G/L account)

Some of Standard Account Keys

1. ERF - Freight Revenue
2. ERL - Sales Revenue
3. ERS - Sales Deductions
4. ERB-----Sales Rebates
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Important Note:
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SAP provides the following six ways of determining the Gl accounts in SD.
1. Application (key for the Sales and Distribution application)
2. Account determination type
3. Chart of accounts (from the FI System
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4. Customer account assignment group
5. Materials account assignment group
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6. Account key

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Electronic Bank Statement

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What is EBS?

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Electronic Bank Statement is provided to the account holders in standard formats, e.g. CAMT,
MT940, BAI2 etc. As a part of Payment Transaction processing, EBS can be imported and posted
in SAP for reconciliation.

Bank reconciliation statement is a report or statement prepared by the business to match the
business transactions recorded in the books of accounts with the bank statement. The bank
reconciliation statement helps to check the correctness of the entries recorded in the books of
accounts and thereby, ensure the accuracy of bank balances.
Why bank reconciliation statements are prepared
➢ Cheques issued but not cleared in the bank
➢ Difference in cheque deposited and cheque credited date
➢ Date of cheque issued towards payment and date on which it is debited is different

26
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
➢ Cheque issued or received is not presented in the bank for clearing
➢ Bank interests, Charges etc. are not accounted for.reason being it is not known till you
reconcile
➢ Banks can also do mistake in debiting or crediting the transactions
➢ Just like banks, you too can take mistake in accounting the bank transactions in the
books of accounts and so on……
There are two types of bank reconciliation statement in sap
1. Manual Bank Reconciliation Statement: -
Manual bank reconciliation is the paper statement . Enter information from the
statement and then do a manual reconciliation.
2. Electronic bank reconciliation statement: -
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reconciliation in standard formats.
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As a part of Payment Transaction processing, EBS can be imported and posted in SAP for

Journal Entries ca
At the time of purchase
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1.Purchase goods /services from vendor .
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Purchases a/c Dr xxx
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ec
To Vendor a/c xxx

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2.Payment to Vendor by cheque/bank transfer
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Vendor a/c Dr
To Outgoing bank a/cF i xxx
xxx
3.While reconciliation process
Outgoing bank a/c Dr xxx
To Main bank a/c xxx

At the time of sale

1. Sold goods /services to customer
Customer a/c Dr xxx
To Sales a/c xxx

27
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
2. Receive payment from customer by cheque/Bank transfer
Incoming bank a/c Dr xxx
To Customer a/c xxx

3. While reconciliation process

Main bank a/c Dr xxx
To Incoming bank a/c xxx

4. If direct deposit while reconciliation process

Main bank a/c Dr xxx
To Customer a/c
Some other Journal entries
xxx

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1. Bank charges & Other Expenses
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Bank charges & Other Expenses a/c
To Main Bank a/c
Dr xxx
xxx ca
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2. Interest & other Receipt
Main bank a/c Dr xxx
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To Interest & other receipt xxx

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Create GL Accounts ------FS00 e c
Step to Configuration

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1.
2.
MAIN BANK
INCOMMING BANK F i
3. OUTGOING BANK
4. BANK CHARGES
5. OTHER EXPENSES
6. INTREST RECEPIT
7. OTHER INCOMES
Define House banks------ FI12
SPRO-→IMG--→Financial accounting (New)--------→Bank accounting------→bank
accounts………>Define House banks

28
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
In the SAP system, you use the bank ID and the account ID to specify bank details. These
specifications are used, for example, for automatic payment transactions to determine the
bank details for payment.
Create Account Symbols ---- OT83
SPRO-----→IMG------→Financial accounting new-----→Bank accounting--------
→business transactions-------→payment transactions------→Electronic bank statements-
-------→Make global settings for electronic bank statement

ACCOUNT TEXT
C100 MAIN BANK

C200
INCOMMING
BANK
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C300
OUTGOING
BANK d e
BANK
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C400 CHARGES
OTHER
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C500 EXPENSES
INTREST
k i l
C600 RECEPIT
OTHER
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C700 INCOMES
Assign account to account symbol e c
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GL A/C
ACT SYMBLE
C100
INR
INR F iNO
200100
GL ACCOUNT
MAIN BANK
C200 INR 200101 OUTGOING BANK
C300 INR 200102 INCOMMING BANK
C400 INR 409000 BANK CHARGES
C500 INR 409001 OTHER EXPENSES
C600 INR 300100 INTREST RECEPIT
C700 INR 300101 OTHER INCOMES

Create keys for posting rules

POSTING RULES TEXT

C100 DR MAIN BANK A/C TO CR CUSTOMER A/C
C200 DR OUTBANK A/C TO CR MAINBANK A/C

29
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

C300 DR BANK CHARGES TO CR MAIN BANK A/C

DR OTHER EXPENSES TO CR MAIN BANK
C400 A/C
DR MAIN BANK A/C TO CR INCOME RECEPIT
C500 A/
C600 DR MAIN BANK A/C TO OTHER INCOME A/C

Define posting rules

ACCOUNT ACCOUNT
POSTIN ARE DR.POSTIN S CR.POSTIN S DOCOMEN POSTIN
G KEYS
C100
A
2
G KEYS
40
SYMBOLS
C100
G KEYS SYMBOLS

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T TYPE
DZ
G KEYS
8
C200
C300
1
1 40
C200
C300
40
50
C100
d
A100 e KZ
SA
4
1
C400
C500
1
1
40
40
C400
C100
50
50 ca
C100
A500
SA
SA
1
1
C600 1 40 C100 50
l A C600 SA 1

Create transaction rules

k i l
MT940 Swift MT940 (standard-Germany)

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c
Assign external transaction types to Posting rules
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T
SYMBOL(+/- DR.POSTING ACCOUNT
n
EXTERNAL TRANSACTION TYPES

F i
NTRF1(ONLINE TRANSFER)
) KEYS

+
SYMBOL

40 C100

NTRF1 - C200

NCHG1 (CHECK) - 40 C300

NINT1(INTREST) + 40 C500

After transaction code NTRF is your bank transaction id or cheque no which would be use for
clearing process and that reference no is unique. So you will get new reference no for every
transaction
Assign bank accounts to transaction types
Bank keys and Bank Account

30
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

What is an MT940?

An MT940 is a standard structured SWIFT Customer Statement message. In short, it is an

electronic bank account statement which has been developed by SWIFT. It is a end of day
statement file which details all entries booked to an account.

MT940 Format Details:

The MT940 file format consists of the following sections and tags:

Tag 20 – Transaction Reference Number

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• Mandatory – 16x
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• Used by the Sender to unambiguously identify the message

c a
Tag 21 – Related Reference
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• Optional – 16x
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•
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If the MT 940 is sent in response to an MT 920 Request Message, this field must contain the field
20 Transaction Reference Number of the request message
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Tag 25 – Account Identification
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•
•
Mandatory – 35x

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This field identifies the account for which the statement is sent

Tag 28C – Statement Number/Sequence Number

• Mandatory – 5n[/5n]
• Sequential number of the statement, optionally followed by the sequence number of the
message within that statement when more than one message is sent for one statement
o For example – the first message within the statement would be represented as 28C:111/1, the
second message within the same file would be 28C:111/2

Tag 60a – Opening Balance

• Mandatory – 1!a6!n3!a15d – D/C | Date | Currency | Amount

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 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
• Indicating for the (intermediate) opening balance, whether it is a debit or credit balance, the
date, the currency and the amount of the balance
• There are 2 options:
o Option F – :60F:
▪ Debit/Credit | Last Statement Date (YYMMDD) | Currency (ISO) | Amount
o Option M – :60M:
▪ Debit/Credit | Current Statement Date (YYMMDD) | Currency (ISO) | Amount

Tag 61 – Statement Line

• Optional – 6!n[4!n]2a[1!a]15d1!a3!c16x[//16x]
[34x]
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o
o
6!n Value Date (YYMMDD)
[4!n] Entry Date (MMDD)
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o 2a Debit/Credit Mark
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o
o 15d Amount
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[1!a] Funds Code (3rd character of the currency code, if needed)

o
o
1!a3!c Transaction Type Identification Code
16x Customer Reference
k i l
o [//16x] Bank Reference
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[34x] Supplementary Details (this will be on a new/separate line)
o

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Tag 86 – Information to Account Owner
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•
•
Optional – 6x65x
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Additional information about the transaction detailed in the preceding statement line and which
is to be passed on to the account owner

1. Upload Bank Statement in SAP:

Transaction Code

To upload the incoming bank statement T CODE – FF.5 or program RFEBKA00 is used and
depending on your requirement select the selection screen parameters.

32
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
Formats

Uploading of Bank Statements into SAP can be done in various formats. It depends upon the
client’s agreement with the respective bank. The formats can be Multi-cash, SWIFT, BAI,MT 940
etc.

Menu Path

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F i

33
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
Screenshot Showing Input Details

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Posting Parameters:
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F i
Uploading of Bank Statement can be done in either of the following two ways

a) Do not post – If we select this option, the Bank Statement gets uploaded into the system but
entries are not posted to the Bank GL Account. In order to post the entries, we have to use the T-
code FEBP.

b) Post immediately – If we select this option, then the entries in Bank Statement get posted to
the Bank GL Accounts the moment we upload the Bank Statement into the system.

Viewing of Uploaded Statement

We can view the uploaded Bank Statement via T-code FF.6 as shown below.

34
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

m y
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k i l
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c
We can view the uploaded Bank Statement via T-code FF.6 as shown below.

e
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The selection parameters to be given include Company Code/Application, House Bank ID,
Account ID, Statement Number/ Dates.

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Application means whether it is manual or Electronic Bank Statement.

001: Electronic and Manual bank statement

002: Check deposit transaction

003: Lock box

004: Account Balance

35
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

m y
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Tabular Reference
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data). F i
The uploaded bank details can be viewed from Table FEBKO (header data) and FEBEP (line item

36
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

m y
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2. Deletion of Bank Statement from SAP

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Transaction Code

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Program RFEBKA96 is used for deleting Bank Statement.

Introduction

Sometimes after uploading the Bank Statement, we come to know that the statement is bad /
incomplete. In that case, we ask for a corrected / complete statement from the Bank. So, in
order to avoid confusion and duplicate, we have to delete the previous statement which was
incomplete.

Steps to be followed

The following steps needs to be followed for deleting Bank Statement:-

37
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
(a) Go to T-Code FEBA. Identify the Bank statement ID which needs to be deleted, e.g., 01 in above
scenario.
Information required
Statement Number
Statement Date
Account Number
Company Code
House Bank
Account ID

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F i

Figure 7

38
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

Figure 8

(b) Go to T-Code SE38 and give the program name i.e. RFEBKA96.

m y
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e c Figure 9

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F i
After entering in to the program, it asks for Application and ID.
For prior day statements, use Application ID = 0001 and for same day statements, use Application
ID = 0004. It asks for Statement ID also.

Figure 10
Click the Delete Statements button.

39
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

Figure 11

m y
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Figure 12
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(c) After deleting the Statement, we can check it in T-Code FEBA
k
h S
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F i
Figure 13

Figure 14

40
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

OPEN ITEM MANAGEMENT IN SAP

DESCRIPTION: Generally In Technical Point of view Open item Management is just a Check box
in control data TAB in GL Mater data (T-CODE: FS00).

In functional point of view it would be control all out standings, which will be receive from
customer’s and pay to vendor’s / Employees / Govt authorities etc. in each and every line item of
respective GL account reports. It should be give clear report, which line item / invoice has to be
paid to vendor and received from customers. One red / Green symbol mentioned will be appear

m y
in standard report like FBL3N, FBL5N, and FBL1N & FAGLL03 report ,if you marked as open item

e
management check box in GL master. Red symbol states those line items are still open and yet
d
a
to clear & green symbol line items states those line items are cleared.
c
⚫
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Open item management is monitoring all the outstanding balances in the system

⚫ Down payment methods Partial & Residual

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⚫
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Receivables & Payables both can be monitored with Open item management

⚫
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If we select the OIM indicator in master data records for an account It will activate the OIM

⚫
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At the time of GL Creation there is OIM Indicator in control data

⚫ F i
Must Activate OIM for all the Payables & Receivables GLs

⚫ The GL s will clear in the future those GLs will covered in OIM

⚫ Provisions Like Rent & Salary's will come under OIM

⚫ To view Document FBL3N

Table view SE16N BSIK : vendor open items

BSAK: Vendor clearing items

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 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
GL Creation : FS00:

◼ Go to FS00 Create any GL in the header of Current Liability for Payable GL (Outstanding )
◼ Create any GL in the header A/C of Current Assets for Receivable GL (Incoming)
◼ Click The Open item Management indicator In control data screen
◼ Click Only Balances in Local currency

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GL Accounts to be managed as Open item management:-
k i l
S
1. Bank clearing GL accounts: – All bank sub ledgers like Bank incoming payments &
h
c
outgoing payment GL account must be select as open item management & it will be help
e
T
us for bank reconciliation purpose.

n
F i
2. Payable GL accounts :- Like salary payable ,commission payable ,wages payable Freight
payable & other tax related GL accounts like VAT payable must be select as open item
management & it will be guide to FI department line item was tracking whether
outstanding line items are paid to vendor’s / employees and VAT authorities or not.
3. GRIR Clearing accounts: – You easily recognize your contingency liability status of GRIR
accounts, if you activated OI management.

EX Entries : GL Posting

Date : 31.12.2021 Dr. Salary A/C 5,00,000

T-CODE FB50 / F-02

T-
42
FB50/ F-02
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
Cr. Salary Payable A/C 5,00,000 Date : 01.01.2022
Payment Posting

Dr. Salary Payable A/C 5,00,000

T-CODE : F-06
Cr. Bank/Cash A/C 5,00,000

⚫ Now once after the full payment done the document will be cleared

⚫ Debit A/C & Credit A/C Set off and Null if after the clearing till than the document will show
in red / Open it means not cleared.

m y
Receivables Entry:
d e
GL Posting
c a
05.01.2022 Dr. Rent Receivable A/C 55,000
l A
T-Code : FB50 / F-02

Cr. Rent Received A/C

k i l
Payment Posting
h S
10.01.2022 Dr. Bank A/C 55,000 e c T-Code : F-07

n T
i
Cr. Rent Receivable 55,0000

GL Posted in FB50 For Salary provision

43
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
OPEN ITEM MANAGEMENT FOR PARTIAL CLEARING

m y
d e
ca
l A
k i l
h S
e c
n T
F i
Process to Activate Open item Management for GLs Which consist Multiple entry s posted :

T-code: FAGL_ACTIVATE_OP

So here It is possible to maitain Open item management for all the pre existed GLs which has
entry posted earlier, the above T-Code to control Open item management which missed to
activate while craeting the GLs .

44
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

m y
d e
MT940
ca
Tag 62a – Closing Balance (Booked Funds)
l A
•
k i
Mandatory – 1!a6!n3!a15d – D/C | Date | Currency | Amount
l
•

h S
Indicating for the (intermediate) closing balance, whether it is a debit or credit balance, the
date, the currency and the amount of the balance
• There are 2 options:
e c
o Option F – :60F:

n T
Debit/Credit | Last Statement Date (YYMMDD) | Currency (ISO) | Amount
▪
o
▪
Option M – :60M:
F i
Debit/Credit | Current Statement Date (YYMMDD) | Currency (ISO) | Amount

Tag 64 – Closing Available Balance (Available Funds)

• Optional – 1!a6!n3!a15d – D/C | Date | Currency | Amount

• Indicates the funds which are available to the account owner (if credit balance) or the balance
which is subject to interest charges (if debit balance).
• Debit Balance /Credit Balance | Date (YYMMDD) | Currency (ISO) | Amount

Tag 65 – Forward Available Balance

• Optional – 1!a6!n3!a15d – – D/C | Date | Currency | Amount

45
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
• Indicates the funds which are available to the account owner (if a credit or debit balance) for the
specified forward value date
• Debit Balance /Credit Balance | Date (YYMMDD) | Currency (ISO) | Amount

Tag 86 – Information to Account Owner

• Optional – 6x65x
• Additional information about the statement as a whole

MT940 format

m y
d e
ca
l A
IN DETAILS OF MT940 FORMAT

k i l
h S
e c
n T
F i

Customer Invoice:

Let’s suppose that we have two Customer Invoices with the global amount of 378 EUR (177,10
and 200,90) with the reference values 10100001 & 10100002 like below:

46
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

m y
Customer Line Item Display FBL5N
d e
ca
With the line items display, we see that the two invoices have a red indicator (due date
exceeded)
l A
k i l
h S
e c
n T
F i

Electronic Bank Statement (EBS) received

Let’s assume that treasury department received a credit posting in the EBS with reference to
the two invoices mentioned before (Reference 10100001 & 10100002) and for an amount of 378
EURO (177,10 + 200,90)
47
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
This means that the Customer payment have been received and we should clear the
corresponding Open Items.

Electronic Bank Statement (EBS) Integration FF_5

EBS Integration program can be launched like below (with reference)

m y
d e
ca
l A
k i l
h S
e c
T
After a successful run, the program will allow the creation of the following documents:
n
•
• F i
Bank clearing document for the Amount 378,00
Customer payment document with 378,00 Euro which allows open items clearing

The below screenshot shows the postings made

48
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
Bank Postings after FF.5 Run
Bank clearing Document for the Amount 378,00

Customer payment document 378,00 which will clear the open items

m y
d e
ca
l A
Customer Line Item Display FBL5N k i l
h S
After launching the FBL5N with the appropriate criteria, the Customer Open Items are now
displayed with a green indicator (Cleared Document).

e c
n T
F i
Global view of the processFrom an accounting point of view, the process can be shown like
below

GST (Good and Services Tax)

49
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
GST is an indirect tax and leaved on the supply of goods and services.
Types of GST
• Central Goods and Services Tax (CGST)
• State Goods and Services Tax (SGST)
• Integrated Goods and Services Tax (IGST)
• Union Territory Goods and Services Tax (UTGST)

Authority which is Who is it collected Transactions which are applicable

Types of GST
benefitted by? (Goods and Services)

Central
m y
Within a single state, i.e.
CGST Central Government
Government
e
intrastate
d
SGST State Government State Government c a
Within a single state, i.e.

l A intrastate

IGST
Central Government Central
k i l Between two different states or a
state and a Union Territory, i.e.
and State Government
S
Government

h
interstate

UTGST/UGST
Union Territory (UT)
e c Union Territory (UT) Within a single Union Territory
Government
n T Government (UT)

F i Transaction
Intra-state transaction (with in state) Inter-state transaction (B/w
states)

Purchases Sales Purchases Sales

Input CGST Output CGST Input IGST Output IGST
Input SGST Output SGST
**** Input : Purchases (Paid to Others)-Current Asset
****Output : Sales (Collected from Others)-Current Liability
Journal Entries

50
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

Intra-state purchase Inter-state Purchases

Purchase A/c ………………Dr. 1,00,000 Purchase A/c ………………Dr. 1,00,000
Input CGST A/c ……………Dr. 2,500 Input IGST A/c ……………Dr. 5,000
Input SGST A/c ………....…Dr. 2,500
To Creditors A/c……………….......1,05,000 To Creditors A/c 1,05,000
(Being purchase of goods to be traded, GST of 5% )
Intra-state Sales Inter-state Sales
Debtors A/c ………………Dr. 1,05,000 Debtors A/c ………………Dr.

m y
1,05,000

de
To Sales A/c 1,00,000 To Sales A/c 1,00,000

ca
To Output CGST A/c 2,500 To Output IGST A/c 5,000
To Output SGST A/c 2,500

l A
Configuration Steps
k
T-code
l
Being sale of the goods to customers, bearing GST of 5% in total)
i
S
1. Define Tax Access Sequence…………………………… OBQ2/OBYZ
h
e c
2. Define Condition Types(Tax)……………………………. OBQ1/OBYZ

n T
i
3. Create account keys ………………………………………OBCN
F
4. Define Tax procedure ………………………………….....OBQ3/OBYZ

5. Assign Tax Procedure to Country………………………. OBBG

6. Create Tax code in Country ………………………….…. FTXP

7. Assign GL to account keys ……….…………………….. OB40

EXAMPLE:

51
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
1. Define Tax Access Sequence…………………………… OBQ2/OBYZ

Ex: CTAX

2. Define Condition Types(Tax)……………………………. OBQ1/OBYZ

EX: CICT - INPUT CGST COCT - OUTPUT CGST

CIST - INPUT SGST COST - OUTPUT SGST

CIIT -INPUT IGST COIT - OUTPUT IGST

3. Create account keys ………………………………………OBCN

m y
EX: CIC - INPUT CGST COC
d e
- OUTPUT CGST

CIS - INPUT SGST COS ca

- OUTPUT SGST

l A
CII -INPUT IGST COI

k i l- OUTPUT IGST

EX: CTAXIN h S
4. Define Tax procedure ………………………………….....OBQ3/OBYZ

e c
T
5. Assign Tax Procedure to Country………………………. OBBG

n
i
6. Create Tax code in Country ………………………….…. FTXP
F
C1- INPUT GST 5%(CGST&SGST)

C2- INPUT GST 5%(IGST)

M1-OUTPUT GST 5%(CGST&SGST), M2- OUTPUT GST 5%(IGST)

7. Assign GL to account keys ………………………….. OB40

CURRENT ASSET CURRENT LIABILITIES

200108 INPUT CGST A/C 100505 OUTPUT CGST A/C

200109 INPUT SGST A/C 100506 OUTPUT SGST A/C

52
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
200110 INPUT IGST A/C 100507 OUTPUT IGST A/C

**** WE NEED TO SELECT TAX CATEGORY IN G/L ACCOUNTS WHICH IS COMES UNDER TAX

WITHHOLDING TAX IN SAP

Withholding Tax is quite like the working of Tax Deducted at Source. In outside India,
terminology used for Tax Deducting at Source is withholding tax. But if we talk about India, here
withholding tax is applicable on various income sources such as salary earned from work,
commission, rent, professional services, technical services or income from business, etc.

y
Withholding Tax is also called as retention tax. Its requirement of Government to deduct or
withhold a particular percentage from paying to the vendor and pay such amount to the
m
Government on behalf of other person.
In sap withholding tax is classification in to two types d e
1. Classic withholding tax
c a
2. Extended withholding tax
l A
i l
Classic withholding tax-----we can enter only one-line item in the vendor master record.
k
h S
Classic withholding tax is only for creditors; we can have called it as vendors.
Extended withholding tax------in extended withholding tax you can enter multiple line items, it
c
is designed for both vendors and customers
e
n T
Extended Withholding tax includes all the functions of classic withholding tax. SAP therefore
recommends the use of extended withholding tax.

F i
Classic and Extended Withholding Tax functions
Sl. Functionality Classic WHT Extended
No. WHT
1 Withholding Tax on Outgoing payment Yes Yes
2 TDS on Incoming payment No Yes
3 TDS at the time of invoice No Yes
4 TDS on partial payment No Yes
5 No. of withholding tax from each Max1 Several
document
6 TDS basis
- Net amount Yes Yes
-Gross amount Yes Yes

53
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

-Tax amount No Yes

7 Rounding rules No Yes
8 Cash discount consideration No Yes
9 Accumulation No Yes
10 Minimum/Maximum amt and exemption No Yes
11 Certification Numbering No Yes
12 Calculation Formula Yes Yes
Country-Specific Requirements Due to legal requirements, the following countries use
extended withholding tax:

America Europe and Africa

m y
Asia/Pacific
Argentina
Brazil
United Kingdom
Slovakia
d e India
The Philippines
Chile
Colombia
Turkey
ca South Korea
Thailand
Mexico
l A
Peru
Venezuela
TDS under Income Tax Act k i l
h S
• TDS is deducted at the time of Payment or Invoice whichever is earlier

e c
• The base amount for TDS calculation will be net amount i.e., excluding taxes

T
• Applicable on various expenses/ payments like salary, interests, rent, commission etc.
n
F i
• Different rate of TDS for different types of payments defined under different sections. Eg.
Section 194 defines rates for TDS on Interest on securities, Sec 194 I defines rates for TDS on
Rent etc.
Important Terms TAX KEYS
• Tax keys are defined to identify different Sections under which TDS is levied
• It is required for Reporting Tax details for respective Sections under Income tax return (India)
Recipient Types:
• Different persons are defined under recipient types [Example: Company, Individual/HUF]
• Recipient type is assigned to respective vendor
• Used in case different tax types are applicable to different persons (Individual/HUF/Company)
Exemption Reason Code:
54
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
• Exemptions, if any, are defined as exemption reason code.
• Exemption Reason code gets assigned to respective Vendor master record
Business Place:
• Business Place are location where tax is deducted
• A Business place is created for each TAN number that a company has.
Tax Types:
• Tax type is where we define properties for W/H Tax Calculation such as Base amount,
rounding rule, accumulation type.

m y
• Tax type is defined separately for Invoice & Payment. It means that for each tax key, 2 tax types
will be defined

d e
requirement. Tax Code:
c a
• If Recipient Type is to be defined, then additional Tax Types will also be defined as per

• Each W/H Tax Rate under a section is defined under tax code
l A
• Each Tax code shall be defined twice for each tax type
k i l
W/H Tax Configuration:
Define Withholding Tax Country
h S
Define Business Places
e c
Assign Factory Calendars to Business Places

n T
Assign Factory Calendars to Section Codes
Maintain Tax Due dates
F i
Define Withholding Tax Keys
Define Withholding Tax Types
Define Recipient types
Define Withholding Tax Code
Define Reason Codes for Exemption
Assigning Withholding Tax type to Company Code
Remittance Challans
1. Specify Document type (Accounts Payable)
2. Maintain Number Groups
3. Assign Number Ranges to Number Group
4. Maintain Number Ranges
WHT Certificate
1. Maintain Number Groups and SAP Scripts for WHT Certificate
2. Assign Number ranges to Number Groups

55
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
3. Maintain Number range
Activate Extended Withholding Tax for your company code
Create GL and assign it to Tax Type
Assign Tax type, tax code, exemption reason code & recipient type to
Vendor
Transactions Posting
Post Vendor Invoice
Create Remittance Challan
Enter Bank Challan
Printing Withholding Tax Certificate
m y
CONFIGURATION
d e
2.1 Check Withholding Tax Countries
ca
Via Menus
l A
IMG Financial Accounting (New) Financial Accounting Global

i l
Settings(New) Withholding tax Extended withholding Tax Basic

k
settings Check Withholding Tax Countries
Via
Transaction
SPRO

h S
Code
e c
n T
F i
2.2 Define Withholding Tax keys

Via Menus IMG Financial Accounting (New) Financial Accounting Global

Settings(New) Withholding tax Extended withholding Tax
Basic settings Define Withholding Tax keys
Via Transaction SPRO
Code
On prompting input country key

56
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

Click on

Click on

2.3 Define Withholding Tax Type for Invoice Posting

Via Menus IMG Financial Accounting (New) Financial Accounting global

Tax Type for Invoice Posting

m y
Settings(New) Withholding tax Calculation Define Withholding

Via Transaction
Code
SPRO
d e
Click on
ca
l A
k i l
h S
e c
n T
F i
Click on
2.4 Define Withholding Tax Type for Payment Posting

Via Menus IMG Financial Accounting (New) Financial Accounting global

Settings(New) Withholding tax Calculation Define Withholding
Tax Type for Payment Posting
Via Transaction SPRO
Code

57
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

m y
d e
c a
l A
k i l
Click on

h S
2.5 Check Recipient Type
e c
Via Menus
n T
IMG Financial Accounting (New) Financial Accounting Global

F i
Settings(New) Withholding tax Extended withholding Tax
Basic settings Check Recipient Types
Via Transaction SPRO
Code

Provide country on prompting and Click on

Click on
2.6 Check Income Types

58
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

Via Menus IMG Financial Accounting (New) Financial Accounting Global

Settings(New) Withholding tax Extended withholding Tax
Basic settings Check Income Types
Via Transaction SPRO
Code

Provide country on prompting and Click on

Click on
m y
d e
2.7 Define Business places
Via Menus ca
IMG Cross Application Components General Application
A
Functions Nota Fiscal CNPJ Business Places
l
Via Transaction
Define Business Places
SPRO
k i l
Code

h S
Click on
e c
n T
Click on
i
then enter address in the pop up box

F
Click on
2.8 Define Section codes Business places

Via Menus IMG Financial Accounting (New) Financial Accounting Global

Settings(New) Withholding tax Extended withholding Tax
Basic settings South Korea Define Section Codes
Via Transaction SPRO
Code

59
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

Press Enter or click on

Click on
2.9 Assign Factory Calendar to Business places
Via Menus y
IMG Financial Accounting (New) Financial Accounting Global
m
Settings(New) Withholding tax Extended withholding Tax
e
Basic settings India Define Business Places
d
Via Transaction
Code
SPRO

ca
Provide country on prompting and Click on
l A
k i l
Click on
h S
2.10
Via Menus
Maintain Tax Due dates
e c
IMG Financial Accounting (New) Financial Accounting Global
T
Settings(New) Withholding tax Extended withholding Tax
n
Via Transaction
F i
Basic settings India Maintain Tax Due Dates
SPRO
Code

Click on

Click on

2.11 Define Withholding Tax Codes

Via Menus IMG Financial Accounting (New) Financial Accounting
Global
Settings(New) Withholding tax Extended Withholding tax
Calculation WHT code Define Withholding Tax code
60
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

Via Transaction SPRO

Code

Click on and provide below details:

m y
Click on select and then Click on

d e
ca
l A
Click on

k i l
h S
e c
2.12 Define Min/Max Amounts for Withholding Tax Codes

n T
Via Menus

F i
IMG Financial Accounting (New) Financial Accounting Global
Settings(New) Withholding tax EWT Calculation Min/Max
Amounts Min/Max Amounts for WHT codes
Via Transaction SPRO
Code

61
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

Click on and update details for both tax codes one by one.

m y
d e
Click on
c a
l A
2.13
i l
Assign Withholding Tax Types to Company Codes
k
Via Menus
S
IMG Financial Accounting (New) Financial Accounting Global

h
Settings(New) Withholding tax EWT Company code Assign

Via Transaction SPRO e c

withholding Tax Types to company codes

Code
n T
F i

Click on and click on and provide below details

Click on

62
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
2.14 Activate Extended Withholding Tax

Via Menus IMG Financial Accounting (New) Financial Accounting Global

Settings(New) Withholding tax Extended Withholding Tax
Company code Activate Withholding Tax
Via Transaction SPRO
Code

m y
d e
Click on
2.15
Click on
Create GL Account for Withholding Tax ca
l A
i
Create GL required for Withholding tax postings

k l
h S
e c
nT
F i

63
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
2.16 Accounts for Withholding Tax to be paid over
Via Menus IMG Financial Accounting (New) Financial Accounting Global
Settings(New) Withholding tax Extended Withholding Tax
Posting Accounts for Withholding Tax to be Paid over
Via Transaction SPRO
Code

m y
d e
Click on
ca
l A
k i l
h S
Click on
e c
n T
Via Menus F i
2.17 Specify Document type (Accounts Payable)
IMG Financial Accounting (New) Financial Accounting Global
Settings(New) Withholding tax Extended Withholding Tax
Posting India Remittance Challans Document Types Specify
Document types.
Via Transaction SPRO
Code

Click on

Click on

64
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
2.18 Maintain Number Groups
Via Menus IMG Financial Accounting (New) Financial Accounting Global
Settings
(New) Withholding tax Extended Withholding Tax
Posting India Remittance Challans Maintain Number Groups
Via Transaction SPRO
Code
Click on

m y
d e
Click on
ca
2.19 Assign Number Ranges to Number Groups
l A
Via Menus
i l
IMG Financial Accounting (New) Financial Accounting Global
k
Settings (New) Withholding tax Extended Withholding Tax

h
Number Groups
S
Posting India Remittance Challans Assign Number Ranges to

Via Transaction SPRO

e c
Code

nT
Click on

F i

Click on
2.20 Maintain Number Ranges

65
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

Click on and select Group→Insert from the menu

m y
d e
c a
l A
k i l
h S
e c
Provide company code on pop up

n T
F i

Click on Click on

66
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
Check number range and double click on number group.
Then click on

Nu mber group is assigned to Number ranges as below

m y
d e
ca
Click on
l A
2.21
k i l
Maintain Number Grps and SAP Scripts for WHT Certificate
Via Menus S
IMG Financial Accounting (New) Financial Accounting Global
h
Settings (New) Withholding tax Extended Withholding Tax

e c
Posting India Withholding Tax Certificates for Vendors and
Customers Maintain Number Groups and SAP Script Forms
Via Transaction
n
SPRO T
Code
F i
Click on

Click on

67
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
2.22 Assign Number ranges to Number Groups

Via Menus IMG Financial Accounting (New) Financial Accounting Global

Settings (New) Withholding tax Extended Withholding Tax
Posting India Withholding Tax Certificates for Vendors and
Customers Assign Number Ranges to Number Groups
Via Transaction SPRO
Code

Click on

m y
Cli ck on
d e
2.23 Maintain Number ranges
ca
Via Menus
A
IMG Financial Accounting (New) Financial Accounting Global

l
Settings (New) Withholding tax Extended Withholding Tax

i l
Posting India Withholding Tax Certificates for Vendors and
k
Customers Maintain Number Ranges
Via Transaction
Code
SPRO

h S
Select Group from menu
c
select insert
e
n T
F i
Update below details

68
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

Click on
2.24 Maintain Company code Settings –Excise Registration

Via Menus IMG Logistics-General Tax on Goods Movement India Basic

Settings Maintain Company code Settings
Via Transaction
Code
SPRO

m y
d e
ca
l A
k i l
h S
e c
nT
F i

Click on

3 Assign Withholding Tax code to Vendor Master

Go to FK02 (Change Vendor Master) and select Withholding tax Check box

69
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

m y
d e
ca
l A
k i l
Press Enter and provide below details

h S
e c
n T
F i

Click on

70
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

4 Transactions Postng
Here, let us post some transactions and see how withholding tax is calculated and
how TDS Certificate is printed.
4.1 Post Invoice
Via Menus Accounting Financial Accounting Accounts Payable Document
Entry Invoice
Via Transaction FB60
Code

Enter all the details required as below

m y
d e
ca
l A
k i l
Observe message
h S
Select document Simulate Save

e c
Note: You must enter business place and Section complete print withholding tax challan
T
and certificate, otherwise you would get errors
n
Select Document
F i
Display

4.2 Create Remittance Challan

Via Menus Accounting Financial Accounting Accounts Payable

Withholding

71
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

Tax India Extended Withholding Tax Remittance of Withholding

Tax Create Remittance Challan

Via Transaction J1INCHLN

Code
Update below details:

m y
d e
ca
l A
k i l
h S
e c
n T
Double click on amount to select and select back arrow

F i

In the below screen double click on amount and delete amount and put *

72
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

Select Document simulate Save

Message: Document posted in company code 1112
Select Document Display to view the document post

m y
d e
ca
l A
k i l
h S
e c
n T
F i
Error: If you get the error “Number group not maintained for CO code 1112 section IEQ1112
and business place 194C”

Go to transaction code SM30

Click on

73
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
4.3 Enter Bank Challan

Via Menus Accounting Financial Accounting Accounts Payable

Withholding
Tax India Extended Withholding Tax Remittance of Withholding
Tax Enter Bank Challan
Via Transaction J1INBANK
Code

m y
Click on
d e
ca
l A
Click on

k i l
h
4.4 Printing Withholding Tax Certificate S
Via Menus c
Accounting Financial Accounting Accounts Payable
e
Withholding Tax India Extended Withholding Tax Certificates
T
Enter Bank Challan
n
Via Transaction
Code
F iJ1INCERT

Provide below details:

Give printer name in the below screen

74
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

Click on to preview TDS Certificate

Click on to print TDS Certificate
Select System Own Spool Request (SP01) to see the WHT Certificate

m y
d e
ca
l A
k i l
h S
e c
n T
F i

75
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

Asset Accounting

Asset: --
➢ Asset includes
➢ both current and fixed assets
Current Assets: --
➢ are the assets m y
➢ which can be converted into
d e
➢
➢
cash or the cash equivalents
within a short duration
c a
➢ less than a year
l A
i l
Ex: - Cash, Bills receivable, prepaid expenses, Inventory etc.,
k
Fixed Assets: --
➢ are the assets
h S
➢
e c
acquired for the purpose of
➢
➢
usage
not for resale
n T
➢
➢ F i
economic benefit over a period of time
i.e., more than a year
Ex: - Land, buildings, goodwill, patents, copyrights, vehicles, furniture, Plant & Machinery, etc.
Here, the fixed can be categorised into two types: -
1.Tangible Assets: --
➢ these are the assets
➢ which have physical existence (touch & feel)
➢ and visibility (can see)
Ex: - Buildings, Plant & Machinery, furniture, vehicles, etc.
2. Intangible assets: --

76
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
➢ these are the assets
➢ which have neither physical existence
➢ nor visibility
➢ but we can enjoy the benefit of such an asset
Ex: -Goodwill, patents, copyrights, trademarks, etc.
for example: M/S.Sriji pvt ltd purchased a building at Vrindavan on 3.4.19 for Rs.50,00,000/-
building03.04.19................50lakhs
31.03. 20..........building value..........?
31.03.21............building value..........?
m y
there may be some reduction in the value of an asset.... why?
d e
The reduction in the value of an asset to be known as Depreciation
c a
Depreciation..........> arises

l A
➢
➢
Wear and tear
Efflux of time/passage of time
k i l
➢
➢ Decrease in market value
h S
Obsolescence due to technological changes

c
these are the various reasons for Depreciation as per AS-6
e
T
Factors considered for providing Depreciation:
n
F i
➢ cost of the asset
➢ Expected useful life time
➢ Estimated residual value
why depreciation will be provided?
➢ To correct the financial statements
or
➢ To present true and fair view of the financial position
➢ and to know that the exact value that exists on the balance sheet
today (on such particular date)

➢ Depreciation will be provided on tangible assets

➢ Amortisation will be provided on intangible assets

77
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
suppose, the useful life of an asset is 20 years................
➢ the asset value at the end of the period 20 years.............is zero

It’s the time to purchase another asset ...........

Asset procurement cycle: --------it’s a flow....
1.purchase requisition (PR)------ME51N
2.Purchase order (PO)----ME21N
3.Goods receipt (MIGO)
4.Invoice verification (MIRO) m y
5.Payment to Vendor------F-53/APP
d e
➢
ca
after payment made to vendor, the asset purchased will be capitalised

l A
capitalisation shows the asset value under the balance sheet.
Methods of Depreciation: ---
k i l
Actually, there are 5 methods of depreciation:
h S
They are: -----
e c
1.Straight line method: --

n T
➢

F i
a fixed amount of depreciation charged every year
2.Dimishing balance method: -----
➢ Factors for determining depreciation percentage
➢ upper/lower limit for depreciation percentage
3.Maximum amount method: ---
➢ Depreciation only up to a certain level
4.Periodic control method: ------
➢ Acquisitions
➢ Subsequent acquisitions/post capitalizations
➢ Retirements
➢ Transfers

78
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
5.Multilevel Method: --
➢ Validity period
➢ Base value
➢ Depreciation percentage
Retirement: -
➢ removal of an asset
➢ from asset portfolio
it can be done in 2 ways: ----
1.
➢
Retirement with customer
Gain/loss
m y
2. Retirement without customer
d e
➢ scrap
Retirement can be either........ ca
l A
➢ partial
or
k i l
➢ full retirement
h S
Journal Entries:
e c
n T
i
At the time of purchase of asset
F
Plant & Machinery a/c
To Vendor / cash a/c

Providing Depreciation
Depreciation a/c Dr
To Plant & Machinery a/c

79
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
At the time of Retirement
With customer-------- Profit on sale of asset
Bank a/c Dr
Accumulated Deprn a/c Dr
To machinery a/c
To Profit on sale of asset a/c
With customer-------- Loss on sale of asset
Bank a/c Dr
m y
Accumulated Deprn a/c Dr
d e
Loss on sale of machinery a/c Dr
ca
To machinery a/c

l A
k i l
Asset Accounting In SAP
S
The account maintained on fixed asset (tangible) are known as asset accounting.
h
e c
Asset Accounting involves: -
n T
➢
➢ F i
chart of Depreciation
Non-taxable acquisitions
➢ Account Determination
➢ Screen Layout
➢ Asset Class
➢ Number Ranges
➢ Creation of GL’s
➢ Depreciation key
➢ Depreciation methods
➢ Depreciation run
➢ Depreciation Vs. Accumulated depreciation

80
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
Organisational structure
Chart of Depreciation (COD):
➢ used in order to manage various legal requirements for the depreciation and
valuation of assets
➢ It is at client level
➢ after creation of COD, assigned it to the company code
➢ COD is always country specific
✓ linked with the other company codes is known as
country specific
➢ cod involves various depreciation areas
m y
➢
➢
the methods used for providing depreciation
The depreciation areas are
d e
1.Book depreciation
ca
2.Tax Depreciation
l A
3.Costing Depreciation
k i l
✓
4.Group Depreciation

h S
Copying of Depreciation areas from the other countries is known as "Country
specific"
e c
✓

n T
In USA, there are various number of depreciation areas in the country, and it will
be different from one country to another.

F i
for example: suppose we are having two company codes and one is located at US the other
country is located in India. India is the head office and financial statements are prepared by
head office only, where ever it is located.
USA---->Company------>dollars-------->USD------>Branch
India------->Company--------->Rupees--------->INR------>Head office
here, the branch currency can be converted into head office currency
i.e., Conversion from USD to INR
In this situation, it will arise the concept of "IFRS".
IFRS----------International financial reporting standards
=>it contains worldwide unique standards

81
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
***chart of Depreciation and chart of accounts are different***
***One chart of depreciation will be assigned to multiple company codes***

Differences between Chart of depreciation and chart of accounts

Chart of Depreciation Chart Of Accounts
Established in FI-AA Established in FI
The chart of accounts is a list of GL
accounts used in a company code. The
A chart of depreciation is a collection of chart of accounts contains 1. chart of
country specific depreciation areas
The chart of depreciation is country specific. y
accounts area 2. Company code area

m
Usually, you may not require more than one
chart of depreciation. SAP comes delivered
d e
with many countries’ specific charts of
depreciation as 'reference charts' which can
c a
Depending upon the requirement you
may have an 'operating chart of
be copied to have your own chart of
depreciation
l A
accounts ‘, country specific chart of
accounts’, group chart of accounts
One company code uses only one chart of
depreciation i l
One company code uses only one chart
kof accounts (operating)

Many company codes, in the same country,

h S
Several company codes within the same
country can use the same chart of
can use the same chart of depreciation
Non-taxable acquisitions: ---- e c accounts

n T
➢
➢
➢ F i
these are the non-taxable purchases
i.e., taxes are not applicable for purchase of assets
towards these non-taxable purchases
✓ in sap system
✓ have to assign tax codes V0, A0(zero tax)
✓ V0---Input tax
✓ A0---Output tax
➢ it indicates there would be no tax on purchases and sales
Account Determination:
➢ it is nothing but the assets
➢ such as land, buildings, plant&machinery, vehicles, Asset under construction
➢ example:
K1000 Land
K2000 Buildings

82
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
K3000 Plant & Machinery
K4000 Vehicles
K5000 Asset under construction
➢ ***whatever the assets in the organisation will be mapped with a sap system is to
be known as "Account Determination"***
*Account determination is linked with asset master data to post any kind of transaction.
*
➢ Account Determination in asset accounting creates a link between the asset
classes and the GL accounts.
Screen Layout Rules: ---
m y
➢ It controls the field settings of Asset Master Data
i.e.master data can be controlled here.
d e
➢
ca
In any master, data can be controlled from Account Groups
Ex: Vendor master data------> Vendor account group
l A
i l
Customer master data--->Customer account groups
k
GL master data------------->GL account groups
S
Asset master data--------->account grps-->Screen Layout rules
h
➢
e c
In asset master data account groups are known as Screen Layout
Rules
➢
nT
There will be only screen layout rules and no account groups in asset master
data.
F
In screen Layout rules
i
➢ while using the general data, time dependant data, etc
➢ can assign which is
✓ Mandatory......Ex: Business Area
✓ Optional.......Ex: Cost centres
✓ Suppress
Example: K100 Land
K200 Buildings
K300 Plant & Machinery
K400 -Vehicles , K500 -Asset under construction

83
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

Asset classes: -
➢ It is nothing but classification of an asset
➢ there will be a number of assets in asset class like
Ex: Buildings--------->no of buildings------->one asset class
Machinery-------->no of machineries----->one asset class
same will be for furniture & fixtures, asset under construction.
➢ every asset is assigned to only one asset class.
Creation of Gl’s: --------
m y
➢
d e
here, we are creating a fixed asset GL account for each class
➢
c a
suppose there are 6 assets in business, then create 6 Gl's
Assets are nothing but reconciliations(G067),i.e sub ledgers
➢
✓ Creation of GL accounts in FS00
l A
i l
✓ Ex: Land, Buildings, plant&machinery, Vehicles, Furniture&
k
fixtures, asset under construction
S
Depreciation Key: -Specification and parameters required to calculate depreciation are enter
h
in Depreciation Key.

e c
n T
F i

84
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
Determine depreciation areas in Asset Class
The depreciation terms that are to be used for the asset class are mentioned in this
step. When an asset master is created for this asset class, the depreciation terms are
defaulted to the master record.
Asset Accounting Transactions

We are going see what are the various transaction used in Fixed Asset management

Here, we are going to Transaction Types are used to differentiate various types of
transactions.

m y
d e
ca
l A
k i l
h S
e c
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F i
Asset Accounting Configuration in SAP
Organisation Structure:
Define Chart of Depreciation:
Path:SPRO> IMG>Financial Accounting (New) >Asset Accounting > Organizational Structures >
Copy Reference Chart of Depreciation/Depreciation Areas
T. code: EC08

85
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
Assign Input tax indicator for Non- Taxable Acquisitions:
Path: IMG>Financial Accounting (New) > Asset Accounting > Integration with the General Ledger
> Assign Input Tax Indicator for Non-Taxable Acquisitions
T.Code: OBCL

m y
3.Assign Chart of depreciation to Company code:-
d e
Assign Chart of Depreciation to Company Code
ca
Path:-Financial Accounting (New) > Asset Accounting > Organizational Structures >

T.Code: OAOB
l A
k i l
h S
e c
n T
F i
4. Define Account determination: --
Path: -IMG>Financial Accounting (New) >Asset Accounting > Organisational structure >
Asset Classes > Specify Account Determination

86
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

Specify Screen layout rules:-

m y
d e
Path: -IMG>Financial Accounting (New) >Asset Accounting> Organisational structure >Asset
Classes> Create Screen layout rule
c a
l A
k i l
h S
e c
n T
F i
If you want to change status of any field, go to below screen: -
Path:IMG>Financial Accounting (New) > Asset Accounting>Master Data >Screen Layout > Define
Screen Layout for Asset Master Data

T.code:--OA77

87
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

m y
d e
ca
l A
k i l
h S
e c
n T
F i
Define Number range Intervals: -
Path: -IMG>Financial Accounting (New)> Asset Accounting>Organizational Structures> Asset
Classes>Define Number Range Interval

88
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

Define Asset Classes: -

Path: -Financial Accounting (New) >Asset Accounting >Organizational Structures >Asset
Classes > Define Asset Classes
T.Code: OAOA
m y
d e
ca
l A
k i l
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Create GL Accounts required for Asset Accounting: -

89
 Chanu SK SAP Coach Training Institution
(Guntur||Vijayawada||Hyderabad||Bangalore)
(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
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m y
Define Account Assignment: -
d e
ca
The balance sheet accounts and the depreciation accounts are defined in this step.Path:-

G/L Account
l A
Financial Accounting (New) > Asset Accounting > Integration with the General Ledger > Assign

k i l
The asset acquisition costs are posted to the account assigned under various categories in the

h S
Acquisition account assignment section. And the gain / loss arising out of the sale of an asset
are defined in the Retirement account assignment section.
Provide Chart of Depreciation:-
e c
n T
F i

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m y
d e
ca
l A
k i l
h S
e c
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F i

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 Chanu SK SAP Coach Training Institution
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MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

m y
d e
ca
l A
k i l
h S
e c
n T
F i
Depreciation Key:-
Specification and parameters required to calculate depreciation are enter in Depreciation Key
Define Depreciation Methods:-
Financial Accounting (New) > Asset Accounting > Depreciation > Valuation Methods >
Depreciation Key >Calculation Methods>Define Base Methods
Define Multi Level Methods: -
Path:Financial Accounting (New) > Asset Accounting > Depreciation > Valuation Methods >
Depreciation Key > Calculation Methods> Define multi level methods

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m y
d e
ca
l A
k i l
h S
e c
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MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur
Define Depreciation Key:-
The depreciation key controls the calculation of the depreciation for each asset and for each
depreciation area.
Path: Financial Accounting (New) > Asset Accounting > Depreciation > Valuation Methods >
Depreciation Key > Maintain Depreciation Key T.code: AFAMA

m y
d e
ca
l A
k i l
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m y
d e
Determine depreciation areas in Asset Class:-

ca
The depreciation terms that are to be used for the asset class are mentioned in this step. When
A
an asset master is created for this asset class, the depreciation terms are defaulted to the
l
master record.

k i l
Path:--Financial Accounting (New) >Asset Accounting > Valuation> Determine Depreciation
Areas in the Asset Class
h S
Select Asset Class Land:-
e c
n T
F i

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m y
Define or Assign Form:--
d e
Assign Form ca
Path:-IMG>Financial Accounting (New) > Asset Accounting> Information System >Define or

T.code ; OAAY
l A
k i l
h S
e c
n T
F i

Assign Settlement Profile to Company Code for AUC:-

Path:
IMG>Financial Accounting (New) > Asset Accounting> Transactions >Capitalization of
AUC >Define/Assign Settlement Profiles
T.code:OKO7

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m y
d e
ca
l A
k i l
h S
e c
Create Asset Master AS01
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F i

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MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

m y
d e
ca
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k i l
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Asset Acquisition with Vendor:-

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m y
d e
ca
l A
k i l
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99
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(WhatsApp- 91-9014791883, 91-8309168288, 91-9848533345)
MHR House, 4th Floor, Flat No: 402 3/1 Brodipet, 2nd Floor,
Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

m y
d e
c a
l A
Display the document number:-
Path: k i l
h S
Accounting> Financial Accounting> General Ledger >Document >Display
T.code:FB03
e c
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F i

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m y
d e
Display document through AB03:-
ca
Path:
l A
document
k i l
Accounting > Financial Accounting> Fixed Assets > Posting> Edit

h S
e c
n T
F i

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m y
Use Transaction code AB08 for reversal
d e
Asset Explorer
Path: c a
l A
Accounting > Financial Accounting > Fixed Assets > Asset > Asset Explorer
T.code:; AW01N
k i l
h S
e c
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F i

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m y
d e
ca
l A
k i l
Asset Balances AR01
h S
c
Path: Accounting >Financial Accounting > Fixed Assets > Environment > Work
e
list>Generate

n T
T.code: AR01

F i
This is a popular report in asset accounting.

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Opp Himalaya Book World, SR Nagar, Hyderabad Opp Dharani Xerox, Guntur

m y
d e
c a
l A
k i l
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Depreciation Calculation:-
✓ The asset master record contains the depreciation terms. System calculates
annual depreciation using the depreciation key.
✓ System determines the depreciation start date using the asset value date and
the period control method.
✓ Asset Explorer displays the values and the depreciation for every transaction
and each area
Depreciation Run
Path: Accounting > Financial Accounting > Fixed Assets > Periodic Processing >

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Depreciation Run > Execute
T.code: AFAB

m y
d e
c a
l A
k i l
h S
e c
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F i Sceanarios

Depreciation Smoothing and Catch Up

➢ Explain the concept of smoothing and catch up functionality

✓ when defining depreciation posting rules via transaction OAYR.
✓ This write up also explains the calculation of depreciation under smoothing and
catch up methods of depreciation.

Overview
✓ Typically, depreciation is posted by the system at the end of each posting period.
✓ The frequency of depreciation posting is defined via transaction OAYR (i.e.,
Monthly posting, Bi-Monthly posting, quarterly posting etc..).

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✓ Once the frequency for posting depreciation is defined, the specifications are
valid at the company code and depreciation area level.

In the same customizing step, there is an important option called Smoothing. This option
determines how the system behaves if settings like the depreciation key or useful life have
changed in the Asset during the fiscal year, resulting in changes in the value of depreciation (
either high or low).

➢ If the smoothing option is activated,

✓ the difference is distributed
✓ equally among the remaining posting periods of the current fiscal year.
➢
➢
If this option is not activated,
the entire difference is posted to
m y
➢ the current period which is known as catch up.
d e
Business Scenario c a
A
➢ Depreciation relevant parameters like depreciation key or useful life of an asset is
l
changed in the asset master or in customizing.
i
➢ This results in change in the depreciation amount.
k l
Example
h S
An asset is acquired for $12,000 on 01/01/2021 and its useful life is 10 years.

e c
➢ Hence the yearly depreciation will be $12,000/10 years = $1,200 per year and

T
➢ the monthly depreciation will be $1,200/12 months = $100 per month.

n
i
➢ Depreciation is posted for period 1 to period 6.
F
➢ Now the useful life of the above asset is changed from 10 years to 5 years in the asset
master record in the mid of the year i.e. on 01/07/2021.
➢ Then, the revised (new) depreciation will be $12,000/5 years = $2,400 per year and

➢ the monthly depreciation will be $2,400/12 months = $200 per month.

✓ This resulted in increase of Depreciation from $ 1200 to $2400 for the fiscal year
2021.

✓ Original Depreciation: $ 100/ Month

✓ Revised Depreciation: $ 200/Month

What happens with the difference between the original and new depreciation in periods 1- 6?

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There are 2 possibilities: Smoothing or Catch-Up

Smoothing

The difference will be equally distributed over the remaining planned periods:
Period Original New Difference Amount to be
Depreciation Depreciation Posted

1 Posted -100 200

2 Posted -100 200

m y
3 Posted -100 200
d e
c a
4 Posted -100 200

l A
5

6
Posted -100

Posted -100
200

200 k i l
7 Planned 200
h S 100 300

8 Planned
e c
200 100 300

9 Planned
n T
10 Planned F i 200

200
100

100
300

300

11 Planned 200 100 300

12 Planned 200 100 300

If the smoothing option is activated, the difference is distributed equally among the remaining
posting periods of the current fiscal year.

Catch up

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period Original New Difference Amount to be

depreciation Depreciation posted

1 posted---100 200

2 posted---100 200

3 posted---100 200

4 posted---100 200

5 posted---100 200
m y
6 posted---100 200
d e
7 Planned 200
c a
8 Planned 200
l A
9 Planned 200
k i l
10 Planned

h S
200

11 Planned

e c 200

12 Planned

n T 200

Period

F i
Original Depreciation New
Depreciation
Difference Amount to be
Posted

Period Original Depreciation New Difference Amount to be

Depreciation Posted

1 Posted -100 200

2 Posted -100 200

3 Posted -100 200

4 Posted -100 200

5 Posted -100 200

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period Original New Difference Amount to be

depreciation Depreciation posted

1 posted---100 200

2 posted---100 200

3 posted---100 200

4 posted---100 200

5 posted---100 200

6 posted---100 200
m y
7 Planned 200
d e
8 Planned 200
c a
9 Planned 200
l A
10 Planned 200
k i l
11 Planned
h S
200

12

Period
Planned

Original Depreciation T ec 200

New Difference Amount to be

i n Depreciation Posted

Period F
Original Depreciation New
Depreciation
Difference Amount to be
Posted

6 Posted -100 200

7 Planned 200 600 800

8 Planned 200 200

11 Planned 200 200

12 Planned 200 200

If the option is not activated, the entire difference is posted to the current period which is known
as catch up.

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Important Questions:

Tell me your client cutover activities strategies?

Cutover Strategy In SAP FICO
Here we try to comprehensively cover the SAP Go live strategy as a reference guide as every
business are unique and as a SAP FICO Consultant, you need to adjust accordingly.
The Go Live strategy comprises of the following: -
1) Cut off procedure
2) Pre-Go live checks.
m y
What is meant by cutoff date?
d e
c a
✓ SAP system is configured as per the requirement of the client. The system
A
is ready for the client to use. The client now needs to migrate from the Old
l
l
system (Legacy system) to the new SAP system.
i
✓ The migration from the old system to the new system is known as cut off
date. k
h S
✓ The old system is switched off and the new SAP system is switched on.
✓ The data will be migrated from the old system to SAP. The data will

e c
henceforth be entered in the new SAP system.

n T
✓ To have a smooth switch over from the Legacy system to the new SAP
systems are devised the cut off procedure.

F i
What is meant by Pre Go live check?
➢ It is ensuring that SAP Production system is ready to go live smoothly.
Scenario
➢ A Ltd. is a company implementing SAP system.
➢ The company follows a January - December period for preparing financial accounts.
➢ Therefore the go live data decided for A Ltd is 2nd January 2096.
The Trial balance will be uploaded with date as on 31st December 2095.The Trial balance will
consist only of balance sheet items since all the expense items are already transferred to the
retained earnings account in the old system.
The activities are divided as follows:-
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1) Pre Go live activities
✓ A Ltd will upload the GL codes, cost elements in the production system on
1st December 2095.
✓ A Ltd will complete upload of all the material masters with all the views in
the production system by 2nd December 2095.
✓ All Bill of Material, Routings will be uploaded in the production system by
4th December 2095.
✓ The material masters for raw and packing material will be uploaded with
the moving average prices on 4th December 2095
✓ The cost center Plan will be uploaded, allocation cycles and activity price
calculation will be done by 6th December 2095.

m y
✓ Product cost calculation will be conducted from 7th Dec 2095 to 20th
December 2095 to get the correct cost calculation from system.

d e
✓ All other masters will be uploaded into the production system from 5th
December 2095 and completed by 18th December 2095.
2) Cut off activities
c a
➢ The company closes it sales on 26th December 2095.
A
➢ The company stops all its stock movement on 26th December 2095 up to
l
1st January 2096.
i l
➢ All open purchase orders will be uploaded on 28th December 2095.
k
S
✓ The provision for stock received and invoice not received will be accounted
in a separate GL code (different than the GR/IR).
h
✓ The stocks will be finalized by 29th December 2095.

e c
✓ The company closes it old (legacy) system on 30th December 2095.

n T
✓ The stocks will be uploaded on 31st December 2095 and 1st Jan 2096.
✓ The standard cost estimate will be marked and released on 2nd January
2096.
F i
✓ The system is available for data entry and operation to the users from 2nd
January 2096.
✓ Accounts Receivable open items will be uploaded from 1st January 2096 to
3rd January 2096.
✓ Thus Accounts Receivable is available from 4th January 2096 to account
for customer incoming payment.
✓ Accounts Payable open items will be uploaded from 3rd January 2096 to
4th January 2096.
✓ Accounts Payable is available for payment from 5th January 2096.
✓ Fixed assets are uploaded on 5th January 2096.
✓ The Remaining GL Balances are uploaded on 7th January 2096.
✓ Thus entire data take over activities are to be completed by 7th January
2096.
We will divide the activities as follows:-
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A) Pre-Go Live activities
B) Pre-Go Live checks
C) Upload transaction data into the system
A) Pre-Go Live activities
1. Master data Load into Production system
➢ Ensure all the master data is loaded into the production system.
➢ We will broadly cover the master data which needs to be loaded and the
module responsible.
➢ Material Master (SAP Material Management)

y
➢ Basic responsibility MM: All the respective views of the material masters
the other modules responsible . Ensure that all the required views are
uploaded. m
➢ GL codes - FI
d e
a
➢ Customer Master - FI (accounting view) and SD (sales view)

c
A
Vendor Master - FI (accounting view) and MM (purchasing view)

l
✓
✓
Cost elements - CO
Secondary cost elements - CO
k i l
✓
✓
Profit centers - CO
Cost center - CO
h S
✓
✓ e c
Activity type - CO
Bill of Material - PP
✓
nT
Work Center/ Resource - PP
✓
✓
✓ F i
Routing / Master Recipe - PP
Purchasing Info Record - MM
Service Master - MM
✓ Bank Master - FI
✓ Quality Info Record - QM
✓ Quality Inspection plan

2. Upload Cost center plan

➢ Cost center plan must be updated through transaction code KP06 or using excel
upload.

3. Execute the allocation cycles within cost center accounting

➢ The plan allocation cycles (distribution, assessment) must be executed within the
cost center accounting module. This will allocate the costs from the service cost
center to the receiver cost center.

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4.Update planned activity
➢ After executing of the plan allocation cycles, the production cost centers are now
ready with the planned costs.
➢ You can now calculate the activity prices through the system or manually update
the planned prices by calculating it outside.
➢ The planned activity must be updated through transaction code KP26.

5. Calculate Activity prices

➢ Calculate the activity prices using transaction code KSPI.

6. Execute product costing run

m y
➢ The product costing run will be executed for all semi-finished and finished
materials in the system using transaction code CK40N. This should be run after all
the BOM and Master recipe are uploaded.
d e
➢ The product cost finalization takes a long time and should begin well in advance

c a
before the go live date. Normally the product costing run has to be executed again
and again (3-4 times) since data needs to be corrected and costs have to be
compared with the existing legacy cost.
l A
The possible errors in the product costing run are:-
k i l
material masters.
h S
1) Moving average prices or planned prices are not correctly maintained in the

2) Incorrect quantities in the Bill of Materials, incorrect base unit quantity in the
Bill of Material.
e c
recipe
n T
3) Incorrect quantities (hours, KWH etc.) for activities in the Routing or Master

i
4) Incorrect alternate unit of Measure
F
The product costing is calculated and made ready. The actual Mark and release
will happen on after the stocks are uploaded into the system.

B) Pre-Go Live activities

1. Ensure all the customizing request are in the production system. Check that all
the customizing request are gone in the system and no major requests are
pending. Request relating to reports being developed can be transported as and
when the reports are ready.

2. Ensure all the number ranges for all the modules have been maintained in the
production system.

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3. Ensure that Operating concern has been generated.

4. Ensure that all the Customer Master data is loaded.

5. Ensure all material masters (all material types) have been loaded.

6. Ensure that all the Vendor Master data is loaded.

C) Upload transaction data into system

1. Upload Open purchase orders

m y
the cut off date if no invoices are expected.
d e
Open purchase orders can well be uploaded into the system in advance before

2. Stock upload c a
l A
Stock upload happens in 2 steps:-

k i l
S
1) Finished goods: The standard prices are first uploaded through MR21 or through
an ABAP program which also uses MR21. The stock quantities are uploaded using
h
movement type 561 through an ABAP program which calls transaction MB1C.

e c
n T
2) Raw Material, packing Material, stores and spare parts: The quantities and
values are uploaded at the same time using an ABAP program which calls
i
transaction MB1C.
F
The stock upload will generate the following entry in the system:-

Finished goods stock a/c Debit

Semi-Finished goods stock a/c Debit

Raw Material stock a/c Debit

Packing Material stock a/c Debit

Stores and spares a/c Debit

Data take over Credit

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3. Mark and Release the cost estimate

➢ After the stock is uploaded into the system, the standard cost estimate
will be marked and released into the material master using transaction
code CK40N.

4. Upload Accounts Receivable and Accounts Payable open items

➢ The Accounts Receivable and Accounts Payable open items are
uploaded through LSMW which calls transaction code F-02 GL Account
posting.
➢ The profit center is captured in the data take over account. Baseline

days mentioned in the payment terms.

m y
date must be captured, which will determine aging based on number of

d e
The accounting entry for Accounts Receivable open item upload is:-

Customer a/c (not GL) Debit ca

l A
Data takeover a/c Credit

k i l
Data takeover a/c Debit
Vendor a/c (not GL) Credith S
The accounting entry for Accounts Payable open item upload is:-

e c
n T
5.Asset Master and value upload
➢ Asset Master is a special case of upload where in you upload not only the

F i
master data but also the values. The total cost and accumulated depreciation
are also uploaded at the same time.

✓ This is done through transaction code AS91.

✓ We will explain how it is done.

5.1 The upload of asset master and values through AS91

➢ This upload of asset masters along with the values will not update the FI
General Ledger.
➢ The FI - GL entry balance update will be passed through another transaction.

5.2 Transfer Asset balance into profit center

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➢ Once the asset master along with the values is uploaded, the opening balance
for the asset needs to be transferred to profit center.
➢ The asset balances opening balances are transferred into profit center
accounting through transaction code 1KEI.

5.3 Remove the GL codes for asset from 3KEH table

➢ Remove the Asset reconciliation codes from the transaction code 3KEH. This is
required because a manual FI entry will be passed in the next step, which will
duplicate posting into PCA for the assets.

5.4 Update the FI entry for asset through transaction OASV.

m y
➢ We give an example of how a GL entry passed for Fixed asset upload:-

Let us take Plant and Machinery

d e
Plant and Machinery a/c Dr 100,000 c a
l A
Accumulated depreciation a/c Cr 30,000

k i l
Data takeover a/c Cr 70,000

h S
c
5.5 Reinstate the GL codes for asset in 3KEH
e
n T
➢ After passing the entry for asset upload update the asset reconciliation
accounts in transaction code 3KEH.

F i
6. Upload General Ledger account balances
➢ Finally we upload the remaining General Ledger account balances other than
Fixed Assets, Stock, Accounts Receivable and Accounts Payable. This is again
uploaded through an LSMW program which calls transaction code F-02 GL.

Posting.

Let us take an example for the accounting entry passed:-

Data takeover a/c Debit 550,000 (Balancing figure)

Cash a/c Debit 10,000

Bank a/c Debit 50,000

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Advances Debit 90,000

Share capital a/c Credit 100,000

Short term Loan a/c Credit 200,000

Long term loan a/c Credit 400,000

The Data takeover will become zero on upload of this entry.

How to change the reconciliation account from Vendor Master?

m y
✓ Can we change the reconciliation account in the vendor master data after transaction(s)
have been posted to the vendor?
d e
✓ YES, the reconciliation account can still be changed. However, there are some

procedures: c a
prerequisites that need to be done first. I’d like to share the configuration changes and

l A
A. Set the “Reconciliation Account” field in the vendor master as optional field.
Transaction code: OB23
k i l
h S
Path: IMG → Financial Accounting (New) → Accounts Receivable and Accounts Payable →
Vendor Accounts → Master Data → Define Screen Layout per Activity (Vendors).

e c
➢ Change both Accounting and Centrally part.
➢ Vendor Change
n T
i
➢ Set the status of “reconciliation account” field to optional entry from display only.
F
➢ Optional recon account
➢ Save your work.
B. Define Adjustment Accounts for Changed Reconciliation Accounts
Transaction Code: OBBW
Path: IMG → Financial Accounting (New) → General Ledger Accounting (New) → Periodic
Processing → Reclassify → Transfer and Sort Receivables and Payables → Define Adjustment
Accounts for Changed Reconciliation Accounts.
➢ Changed Recon Account
➢ Save your work.
C. Run Balance Sheet Adjustment Program

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✓ Transaction Code: F101

Tell me some month end activates that you have performed?

✓ Post Adjustment Entries : FB50 (F.02)

✓ Update exchange rate : OB08
✓ Gaps in Document Number Assignment : S_ALR_87012342
✓ Invoice Numbers Allocated Twice : S_ALR_87012341
✓ Display compact document Journal : S_ALR_87012289
✓
✓
Open and Close Posting Periods : S_Alr_87003642 (OB52)
Post Parked Documents : FBVO
m y
✓
✓
d e
Enter Closing Bank Statements (Manual Bank Reconciliation) : FF67, SM35
Enter closing Bank Statements (Electronic Bank Statement Entry) : FF_5, FEBAN

✓
& FF_6
Doubtful receivables: F104 c a
✓ Post Balance Sheet Adjustments: F.5E
l A
✓
✓
Automatic Clearing: F.13
Accrual/Deferral document: FBS1
k i l
✓
✓
Recurring Entries: FBD1

h S
Foreign Currency Revaluation Run: FAGL_FC_VAL (F.05)
✓
✓ e c
Interest Calculation: F.52
Capitalize AUC Assets if any: AIAB, AIBU
✓
n T
Depreciation Run: AFAB
✓
✓
F i
Controlling: Repost, Distribution & Assessment and
order settlement: KB61, KSV5, KSU5 & KO88
✓ Open new CO Posting Period: OKP1
✓ Displaying the Document Journal: S_Alr_87012287
✓ Financial Statements Version: S_Alr_87012284/S_PL0_86000028
✓ Trial Balance: S_PL0_83000030
✓ Maintain GR/IR Clearing : MIGO, MIRO
✓ Review Billing documents not posted to FI and documents
✓ on Billing block: VF04 & VFX3

ASSET ACCOUNTING FOR (AUC) MONTH/PERIOD END

ACTIVITIES:
Create Asset Master: AS01
Down Payment Request For AUC: F-47

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Posting the Down Payment: F-48
Posting the closing invoice: F-90
Clearing the Down Payment: F-54
Settlement Rule for AuC Asset : AIAB
AUC Settlement: AIBU
Asset Explorer: AWO1N
Tell me some yearend activates that you have performed at your client?
✓ YEAR END CLOSING ACTIVITY:
✓ Create factory Calendar for new year: SCAL
✓ Copy Number Range: OBH2
✓ Carry forward AP/AR Balances: F.07
m y
✓ Carry forward GL Balances: FAGLGVTR
✓ Create Payable balance confirmation: F.18
d e
✓ Create Receivable balance confirmation: F.17
✓ Generate Trial Balance: S_PL0_86000030 c a
l A
✓ Final Close and financial release reporting: S_Alr_87012284

i l
✓ Open and Close Previous Accounting period: S_Alr_87003642 (OB52)

k
✓ Display document journal: S_Alr_87012287
✓ Year End Closing: AJAB
✓ Fiscal Year Change: AJRW
h S
e c
What is the Data Migration activities list?
SAP FI DATA MIGRATION ACTIVITY
n T
F i
Broadly, SAP FI Data migration Activity has been divided into two categories,
✓ Master data (G/L accounts, customers, vendors, assets, cost elements, cost centers,
profit centers etc.)
✓ Transnational Data (Open Items for customers and vendors, G/L line items, Asset
Balances, Material balances, Cost Center planning, profit center plan data load etc.)
1- Master Data
1- G/L Accounts
✓ Make LSMW Upload for t-code FS00. Extract template, Fill data and Upload.
2- Customer Accounts
✓ Make LSMW Upload for t-code XD01. Extract template, Fill data and Upload.

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3- Vendor Accounts
✓ Make LSMW Upload for t-code XK01. Extract template, Fill data and Upload.
4- Asset Accounts
✓ Make LSMW Upload for t-code AS91. Extract template, Fill data and Upload.
5- Cost Elements
✓ Make LSMW Upload for t-code KA01. Extract template, Fill data and Upload.
6- Cost Centers
✓
m y
Make LSMW Upload for t-code XS01. Extract template, Fill data and Upload.
7- Profit Center
d e
✓
c a
Make LSMW Upload for t-code KE51. Extract template, Fill data and Upload.

l A
2- Transaction Data
✓ Pre-Requisites
k i l
S
✓ Pre-Requisites required by FINANCE Department:
h
e c
✓ Define cut over phase, during which FINANCE has to,

T
✓ Closed the P&L in Retained earning account.
n
i
✓ Check Balance sheet balances through equation,
F
Assets – Liabilities= Equities

You have to create 6 G/L upload clearing accounts through FS00

✓ G/L Upload clearing
✓ Vendors Upload clearing
✓ Customers upload clearing
✓ Assets upload clearing
✓ Material Upload Account
✓ Main Upload account
Also, configure the Doc Type “UL” with separate No. ranges for Upload.

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1- G/L Line Items
Transfer Balance sheet account balances through F-02 LSMW program. Pass the following JV
entry,
Example:
PK 40 – G/L uploading clearing account Dr 100
PK 50 – Capital ——————————– Cr 100
After uploading the balances you can a pass an adjustment entry for these clearing accounts.
Any way total balance for uploading clearing accounts should be zero.
Example:
m y
PK 40 – Main Upload Account ——— Dr 100
d e
PK 50 -G/hL upload clearing a/c ——— Cr 100
ca
l A
2- Open Items for Customers
k i l
following JV entry,
h S
Transfer Balance sheet account balances through F-02/ F-22 LSMW program. Pass the

Example:
e c
PK 01 – Customer 1 —————– Dr 100
n T
i
PK 01 – Customer 2 —————– Dr 100
F
PK 01 – Customer 3 —————– Dr 100
PK 50 – Customer Upload clearing — Cr 300
After uploading the balances you can a pass an adjustment entry for these clearing accounts.
Any way total balance for uploading clearing accounts should be zero.
Example:
PK 40 – Customer upload clearing — Dr 100
PK 50 – Main Upload Account ————– Cr 100
3- Open Items for Vendors

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Transfer Balance sheet account balances through F-02/ F-43 LSMW program. Pass the
following JV entry,
Example:
PK 50 – Vendor Upload clearing — Dr 300
PK 31 – Vendor 1 ——————– Cr 100
PK 31 – Vendor 2 ——————– Cr 100
PK 31 – Vendor 3 ——————– Cr 100

Any way total balance for uploading clearing accounts should be zero.
m y
After uploading the balances you can a pass an adjustment entry for these clearing accounts.

Example:
d e
PK 40 – Main Upload Account ————– Dr 100
c a
PK 50 – Vendor upload clearing ———- Cr 100
l A
k i l
4- Asset Balances

h S
As, you have already created the Asset Master data through AS91, during which you have also

e c
enter Asset APV and Depreciation values (Asset takeover values) in Asset accounting module.

T
➢ To post in G/L account, go to t-code: OAMK and change the control of reconciliation account
n
to “BLANK”

F i
➢ Transfer Balance sheet account balances through F-02 LSMW program. Pass the following
JV entry,
Example:
PK 70 – Fixed Asset 1————– Dr 100
PK 70 – Fixed Asset 2————– Dr 100
PK 50 – Asset Upload clearing—- Cr 100
PK 50 – Acc. Dep Account——— Cr 100
➢ Post G/L balances and go to OAMK and restore control of reconciliation account to ”
ASSETS”

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➢ 2nd Option for G/L posting is through t-code: OASV. In this you don’t have to use t-codes:
OMAK & F-02.
➢ Now, you have to reconcile Asset values in Asset Accounting module with GL balances
using t-code: ABST2
➢ After uploading the balances you can a pass an adjustment entry for these clearing
accounts. Any way total balance for uploading clearing accounts should be zero Example:
PK 40 – Main Upload Account ——- Dr 100
PK 50 – Asset Upload clearing ——— Cr 100
5- Material Balances
m y
Balances are uploaded via t- code MB1C from MM side.
d e
a
When you upload using 561 movement type, the accounting entry should be,
c
Example: PK 89 – Inventory —————– Dr 100
Material Upload Account — Cr 300
l A PK 50 –

k i l
h S
➢ The system would read the material master price for the plant and multiply the same with
quantity of the material. This will be the value which will be updated as the stock value in the
c
inventory account G/L as well as stock balance in Materials Management.
e
T
➢ After uploading the balances you can a pass an adjustment entry for these clearing
n
Example: F i
accounts. Any way total balance for uploading clearing accounts should be zero.

PK 40 – Material Upload account — Dr 100

PK 50 – Main Upload Account ————– Cr 100
6- Cost Center Planning
Make LSMW program for the KP06, extract the template and upload Cost center planning data
for previous number of years (Optional)
7- Profit Center Planning
Make LSMW program for the 7KE1, extract the template and upload Cost center planning data
for previous number of years (Optional)

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Asset under construction with Internal Order settlement process steps?
• Step 1- Respective user will create the internal order in SAP System. – KO01
• Step 2- Assignment of Budget to the internal order and after assignment approval from
the respective approver. – KO22.
• Step 3- Creation of Asset under Construction Master Data by the specific user. – AS01.
• Step 4- After creation of Assets Master record in SAP system the concerned user will
create the Purchase Order (ME21N) in SAP system.
• Step 5- Release the Purchase order (ME29N) in SAP as per authorization matrix.
• Step 6- Goods receipt (MIGO) is also taken care the concerned department after the
delivery is made in SAP system.
•
department. The depreciation will not run against the AUC.
m y
Step 7- After the MIGO, Invoice receipt (MIRO) is also taken care by the Finance

• Step 8- Post the Payment (F-53) to the Vendor.

d e
•
•
c a
Step 9-Fixed Assets Creation as per actual asset class – AS01.
Step 10-Settlement of Asset Under Construction into Fixed Assets – AIAB.

l A
k i l
Tell me Some important tables in SAP FICO?

h S
Important Tables in SAP FICO

e c
n T
Master data
F i
G/L Accounts

Code Description

SKA1 G/L Accounts (Chart of Accounts)

SKAT G/L Accounts (Chart of Accounts:

Description)

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SKB1 G/L Accounts (Company Code)

Customer Master

Code Description

KNA1 Customer master

KNB1 Customer / company m y

d e
KNVV
c a
Customer sales data

l A
KNBK
i l
Bank details
k
KNVH
h S Customer hierarchy

e c
KNVP
n T Customer partners

F i
KNVS Shipment data for customer

KNVK Contact persons

KNVI Customer master tax indicator

Vendor Master

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Code Description

LFA1 Vendor master

LFB1 Vendor per company code

LFB5 Vendor dunning data

m y
LFM1
e
Purchasing organisation data

d
LFM2
c
Purchasing data a
l A
LFBK
i l
Bank details
k
h S
Customer - material info record

e c
Code
n T Description

F i
KNMT Customer material info record

Bank data

Code Description

BNKA Master bank data

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Accounting documents

Code Description

BKPF Accounting documents

BSEG Item level

BSID
m y
Accounting: Secondary index for
customers

d e
BSIK
c a
Accounting: Secondary index for vendors

l A
BSIM
i l
Secondary Index, Documents for Material
k
BSIP
h S Index for vendor validation of double

e c documents

n T
BSIS
F i Accounting: Secondary index for G/L
accounts

BSAD Accounting: Index for customers (cleared

items)

BSAK Accounting: Index for vendors (cleared

items)

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BSAS Accounting: Index for G/L accounts

(cleared items)

Payment Run

Code Description

REGUH
y
Settlement data from payment program

m
REGUP
d e
Processed items from payment program

c a
Customizing Tables
l A
Company code
k i l
Code
h S Description

e c
T004
n T Chart of accounts

T077S F i Account group (g/l accounts)

T009 Fiscal year variants

T880 Global company data

T014 Credit control area

FI document

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Code Description

T010O Posting period variant

T010P Posting Period Variant Names

T001B Permitted Posting Periods

m y
T003 Document types

d e
T012 House banks
c a
l A
k i l
Tell me GR/IR Clearing Process?
h S
e c
GR IR Clearing Account in SAP is an intermediary clearing account for goods and invoices in
transit. It represents Goods Receipt and Invoice Receipt Account. It’s a balance sheet account

n T
for which balance is not zero at the end of the period. This may happen because of following
reasons;
F i
✓ Goods received but not yet invoiced
✓ Invoices of goods which have not yet been received.
If the GR IR clearing account’s balance is not zero in SAP then that balance need to be either
shown as an asset or liability in balance sheet for the period end closing.
In OBYC we do customization to create accounting documents for goods received in store.
GR IR Clearing Account ’s Use in SAP FI Module
Entries Related to GR IR Clearing in SAP
When goods received in Store following entry has been passed from MM module to Financial
module of sap;

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Inventory Account Dr.
To Goods delivered but not invoiced Clearing Account
At the time of receiving Vendor invoice;
Goods delivered but not invoiced Clearing A/c Dr.
To Inventory A/c
➢ Suppose vendor has sent invoice only for the part of the goods and not for the entire
amount then in that case the amount that has already been credited to GR/IR Clearing
Account has not yet been completely reversed.

m y
➢ Before preparing balance sheet of an organization, we have to take that particular amount

purpose. Two additional a/cs are created for this purpose.

d e
from Goods delivered but not invoiced Clearing account to a particular a/c for disclosure

Goods delivered but not invoiced clearing Adjustment A/c

ca
Goods delivered but not invoiced A/c
l A
i l
➢ In the first step GR IR Clearing adjustment account is debited in SAP for the differential
k
S
amount and the “Goods delivered but not yet invoiced account” is credited for the same
amount. In the second step after preparing the balance sheet the above entry get reversed
h
to nullify the transaction.
e c
n T
F i
Where goods received but invoice not received, system passes the following entry;
GR/IR Clearing Adjustment Account Dr
To Goods Received Not Invoiced Account

Where the invoices have been received but goods not received, system passes the following
entry;
Goods Invoiced Not Received Account Dr
To GR/IR Clearing Adjustment Account

Example

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Step 1: Goods Received
We have posted $ 2000 for goods received to the inventory account. System automatically
posts the transaction to the GR IR clearing account.
Accounting Entry
Inventory A/c Dr $2000
To Goods delivered but not invoiced Clearing A/c or GR IR Clearing Account $2000
Step 2: Invoice Received

m y
➢ Invoice received for $ 1500 towards part of the goods delivered. In this step the above credit
entry of GR IR A/c is debited and vendor a/c credited to nullify the Account but in our case

and until we transfer it or clear it.

d e
we have a balance of $500 which has not been cleared so balance will be in this a/c unless

Accounting Entry
c a
l A
Goods delivered but not invoiced Clearing A/c or GR IR clearing Account Dr $1500
To Vendor A/c $1500
k i l
Step 3: Clearing of GR/IR Account

h S
e c
n T
➢ On the date of running clearing program, system transfer posting to the extent of goods
“delivered but not yet invoiced” to the GR IR Adjustment A/c by debiting GR IR Clearing

F i
adjustment a/c. The offsetting entry is posted to the a/c used for presenting goods
delivered but not invoiced (target account) and the balance in GR IR Clearing account and
Adjustment a/c is set to zero in balance sheet as both a/cs are balance sheet items.

Accounting entry
GR IR Clearing Adjustment A/c Dr $500
To Goods received but not yet invoiced A/c $500
Step 4: Reverse the transfer entry of gr ir clearing adjustment a/c
As mentioned in the clearing program system reverses the step 3 entry and the above process
gets corrected.

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Accounting Entry
Goods received but not yet invoiced A/c Dr $500
To GR IR Clearing Adjustment A/c $500
Audit:
➢ Download the Goods delivered but not invoiced clearing account in to a excel sheet then
separate the items to debit and credit. Find out those items which are not cleared and
reason of not clearing. Ask the concern person for the details of the balance amount in
Goods delivered but not invoiced clearing account.

m y
➢ Goods delivered but not invoiced Clearing A/c is used only in SAP Financial Module to
manage three way match of a purchase order. Its a bookkeeping device to manage the

d e
timing difference of arrival of goods before the invoice is generated or when the invoice

ca
arrive before the delivery of goods. GR IR clearing Account in SAP is used as a buffer
between the inventory and vendor a/c. It should be cleared at regular interval to have a
clarity on your accounts.
l A
Project Related Questions?
k i l
-
- When did the implementation start?
h S
Initially the interviewer would try to make an assessment on your genuinity.

- When did it GOLIVE?

e c
-
n T
Were you involved in the end to end implementation or was it a partial role?
-
- F i
-If you are supporting the client, who implemented SAP?
What tool do you use to track the support activities?
- How many tickets have you handled so far?
- Name some critical issues which you resolved and without which the production or
business got affected?
- What is the system landscape?
- -Have you developed any reports / enhancements / technical / functional designs?
- Are you aware of SLAs
- Rate yourself on a rank of 1 to 10 in FI and CO
- How often have you interacted with client during implementation / support?
- What process designs have been prepared by you?

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- How do you react when you get a critical issue or cross modular issues?

Difference Between Assessment & Distribution?

Assessment: A business activity used to allocate quantities and amounts (actual and plan
values) from one sender object to one or more receiver objects.
➢ The assessment process posts the sender amounts to an assessment account. The SAP
system then allocates the amounts from the assessment account to the receiver(s) - not
directly from the original sender account.

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➢ The assessment works in the same way as the distribution. However, with the assessment,
the debit and credit postings do not occur under the original account or the original cost
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element but under an assessment account or an assessment cost element. The
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information of the original account/original cost element are lost.
3) Distribution: A business activity used to allocate quantities and amounts (actual and plan
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values) from one sender object to one or more receiver objects.
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➢ The distribution process distributes the balance(s) from the original sender(s) to the
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receivers. The original sender account is credited and the original receiver account is

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debited by the distribution. The debit and credit postings for the distribution occur under the
original account/original cost element with which the amounts and quantities are posted at

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the sender. The information of the original account/original cost element remains intact.
Types of Internal Orders?
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Internal orders are used to monitor overhead costs incurred for a specific event, project or
activity. It can be used for a restricted period when executing a job, or for long-term monitoring
of portions of overhead costs. Internal Orders are company code dependent. Internal order
groups can be created for cross-company reporting.
Each internal order in SAP must be identified as one of the following SAP internal order types
✓ Real Order
✓ Statistical Order
The main use cases for each order type are related to cost capturing and reporting. A real order
denotes an actual cost posting to the internal order, while a statistical order will only hold the
cost information for reporting purposes.
Real Order

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All transactions related to primary costs are posted to real orders. At the end of the period, all
the actual costs captured in the internal order get settled in the form of allocation to relevant
cost objects.
As an example, let’s assume ABC Company organizes a marketing event over a two-month
period. The following costs are incurred for the event:
Event Advertisement 1500
Security Expenses 2200
Venue Rental 3500
Total Event Cost 7200
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➢ To capture and segregate the costs related to the event, ABC Company creates an internal
order as a real order that will eventually be settled to the marketing cost center. As the

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costs are incurred, however, the real internal order captures the costs, while the cost
center is not affected. At the end of the second month of the event, the total cost of 7200 is

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settled from internal order to the marketing cost center. Alternatively, ABC Company may

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elect to settle the incurred costs each month-end, and may allocate to multiple cost
objects.
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➢ Thus, real order postings form part of the transactional balance in the CO module by
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transferring primary costs from other SAP modules to a cost object during settlement.

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Statistical Order

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➢ Many organizations use internal orders purely for management analysis. In this case, they
would elect to use a statistical order. In this type of internal order, the cost center is
maintained in the order as the real cost object. Thus, when a transaction is posted to this
type of order, the real cost is incurred by the cost center and the internal order maintains a
statistical balance. No settlement is required for this order type and costs may not be
allocated to multiple cost centers. In this way, statistical orders are useful for internal
analysis and decision making.
Tell me why foreign currency revaluation is required?
Before creating Financial Statements, we have to perform Foreign Currency Valuation for the
Transaction done in Foreign Currency.

These transactions can be bills receivables or bills payable or might be intercompany money
transfers which involves G/L Accounts, Customer or Vendor.

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The Line items can be open or cleared.

For the Line items which are cleared the exchange rate would be that of the date on which it is
cleared.

For Open Items which are not yet cleared the exchange rate may be considered as the current
rate or can be considered as month end exchange rate and can be carried out as a monthly
closing activity .

So at the year end ,there could be some revenue or expense due to exchange rate fluctuations
which will be reflected in the Financial Statements.

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Expense and Revenue Accounts for exchange Rate differences can be maintained in

in the following manner :

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Customizing transaction code SPRO. In the SAP we can carry out Foreign Currency Revaluation

Step 1) Enter Transaction Code F.05 in the SAP Command Field c a

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Step 2) In the next screen , Enter the Following

1. Enter Company Code for which Foreign Currency Valuation is to be carried out
2. Enter Evaluation Key Date

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3. Enter Valuation Method for Exchange Rate Consideration
4. Enter Valuation in Currency Type ( Default is 10 : Company Code Currency)
5. You can filter out Valuation activity by entering appropriate parameters in the Tab
Screens.

Press Execute

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Step 3) In the next screen, a list of G/L Accounts is generated which are selected for the Foreign
Currency Valuation by the Report SAPF100. It evaluates the open items in foreign currency as
well as foreign currency balance sheet accounts.

Difference Between Validation & Substitution?

In this article we will discuss about Validation and Substitution in SAP Accounting Documents,
Perhaps you are wondering why we discuss validation and substitution in SAP Financial ( SAP
FI) the answer is that numerous MM Documents have an FI document as a follow-on.
➢ With SAP validation and substitution, you have two very similar tools provided. The
difference between the two is as follows:
Validation

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With validation, you can check the field contents of the accounting document and prevent the
posting of a document if required by displaying an error message.
Substitution
➢ With substitution, you can overwrite some field contents of the accounting document.
➢ Of course, you also have the option in many MM enhancements to check an input or
overwrite field contents. However, the advantage of validation and substitution is that there
is a central item in the interface between MM and FI.
➢ Therefore, you can implement a central set of rules in validation that will always run

invoice or a document from another SAP module.

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regardless of whether the original document is material document, a logistics incoming

Validation of SAP Accounting Documents

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➢ You can use SAP validation to check an accounting document and to reject the posting, You
can create validation in transaction OB28. A validation for a specific callup point is

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therefore created and contains one or several steps. Each step in turn consists of

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prerequisite, a check and a message displayed if check fails.
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sap-validation-substitution-accounting-document
SAP Validation and Substitution – Callup Points

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Validation can be triggered at various callup points, usually this happen during the check for the
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document at header or the document item takes place. Callup points consist of 3 points such as
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✓ Document Header ( BKPF )
✓ Document Item ( BSEG )
✓ Complete Document ( BKPF + BSEG )
SAP Validation and Substitution – Steps
Each validation consists of one or several steps that are executed in succession. Each step
consists of the following sections :
Prerequisites
In the PREREQUISITES section, you can entered the condition that step is required to executed,
it may you entered only BKPF-BLART EQ ‘PY’ is allowed to run this validation and substitution.
Check

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In the CHECK section, you specify condition that must be fulfilled to run the program without
error and therefore to post the document. You can also go to validation exit for complex checks
and carry out the checks via ABAP coding and you need to return the result of your check to
variable B_RESULT ( false or true ).
Message
In MESSAGE section you have to define the message displayed to the user if the previously
defined check has failed.
What is IDOC?

processes that can understand the syntax and semantics of the data.
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✓ IDOC is simply a data container used to exchange information between any two

between 2 systems which know how to interpret that data.

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✓ In other words, an IDOC is like a data file with a specified format which is exchanged

✓ IDOC stands for ” Intermediate Document”

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✓ When we execute an outbound ALE or EDI Process, an IDOC is created.

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✓ In the SAP System, I DOCs are stored in database. Every IDOC has a unique
number(within a client).

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– Control Record

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✓ All control record data is stored in EDIDC table. The key to this table is the IDOC Number

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✓ It contains information like IDOC number, the direction(inbound/outbound), sender,
recipient information, channel it is using, which port it is using etc.

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✓ Direction ‘1’ indicates outbound, ‘2’ indicates inbound.

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Data Record
✓ Data record contains application data like employee header info, weekly details, client
details etc
✓ All data record data is stored in EDID2 to EDID4 tables and EDIDD is a structure where
you can see its components.
✓ It contains data like the idoc number, name and number of the segment in the idoc, the
hierarchy and the data
✓ The actual data is stored as a string in a field called SDATA, which is a 1000 char long
field.
Status Record

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✓ Status record is attached to an I-DOC at every milestone or when it encounter errors.
✓ All status record data is stored in EDIDS table.
✓ Statuses 1-42 are for outbound while 50-75 for inbound
The I doc structure consists of 3 parts –
The administration part(Control Record)- which has the type of idoc, message type, the current
status, the sender, receiver etc. This is referred to as the Control record.
The application data (Data Record) – Which contains the data. These are called the data
records/segments.

the idoc has passed through.

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The Status information (Status Record)- These give you information about the various stages

You can view an I-DOC using transaction WE02 or WE05

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The Outbound Process
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Steps Involved –
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✓
✓
Create segments(WE31)
Create an idoc type(WE30)
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✓
✓
Create a message type (WE81)

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Associate a message type to idoc type(WE82)
✓ Create a port(WE21)
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The Inbound Process
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Steps Involved-
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✓ Creation of basic Idoc type (Transaction WE30)
✓ Creating message type (Transaction WE81)
✓ Associating the Message type to basic Idoc type (Transaction WE82)
✓ Create the function module for processing the idoc
✓ Define the function module characteristics (BD51)
✓ Allocate the inbound function module to the message type(WE57)
✓ Defining process code (Transaction WE42)
✓ Creation of partner profile (Transaction WE20)
Let’s understand the process of creating an IDOC with an example –
✓ Whenever a Purchase Order (PO) is created we want to send the IDOC to a vendor.

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✓ The PO is sent in the form of an IDOC to the vendor (partner). That partner has to be EDI
enabled in that system. SAP should realize that it could send doc to this vendor
electronically.
✓ The PO sent as an outbound idoc by the customer will be inbound idoc for the vendor. The
SAP system on the vendor’s side can process this to create an application document (a
sales order) on their system.
✓ Quotation, RFQ, PO, SO, Invoice, delivery note etc are some of the commonly exchanged
documents through IDOC
What is base line date? Why is that used? Can this be changed?
base line date is date from which terms of payment apply. by default
base line date will display in invoice posting. we can control the base
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line date in Terms of payment
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configuration step(Tcode is OBB8).
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Base line date may be :---
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a) document date
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b) posting date

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c) no default(for this option , the user should explicitlly
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must define the baseline date in invoice posting).

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d) entry date

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What is a Cross company code. Please explain in brief.
Cross-Company code Transaction involves two or more company codes in one
business transaction.
1.One Company code makes purchases for other company codes(central
procurement)
2.One Company code pays invoices for other company code(central payment)
3.One company code sells goods to other company codes.

Can u Explain What is the Organization Structure for the Company?

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