Yes, by maintaining vendor account group number range interval from A to Z and External number range check box selected. It accepts alphanumeric values for vendor master record.
Initial draft of the BBP would be prepared and submitted to business, if they come up any changes requirement that would be handled through maintaining newer version in the BBP document
After all the business requirements are gathered and documented in BBP document and submitted for the acceptance of the business, the BPO & PMO would give their approval for system configuration by signing off on the BBP document.
Client – Company – Chart of accounts – Company code
Client is the highest organizational unit in system, which will have its own set of data applicable to all company codes all other organizational units in the system.
In one server, from 000 to 999 as many as 1000 clients can be created by Basis team. Generally in DEV server 3 clients would be maintained, in QA and PRD one client would be maintained.
Reliance group Company code is a legal entity for which a self contained set of accounts can be drawn for purpose of external reporting EG: Rel Petrol, Rel Power, Rel Capital Company creation is optional; company code creation is mandatory activity.
A list of GL accounts
Which one are mandatory 3 types – 1. Operational COA 2. Group COA 3. Country specific COA
COD is the highest organizational unit within AA sub ledger, which will consist of different depreciation areas to control how the depreciation is calculated, posted and reported.
In CO module controlling area is the highest org unit, which will be used to generate cost reports for management reporting/internal reporting purpose.
Yes, provided all the company codes must use same operative COA though they maintain in different currencies.
Company code currency is known as local currency in SAP
Fiscal year is a financial year that is being followed by business, EX: standard FY variants – 1. V3 – Apr to March, 2. V6/PS – July to June, 3. K4 – Jan to Dec.
12 normal and 4 special periods can be defined in a one Fiscal year.
Special periods are extension to closed fiscal year and used to post audit adjustment entries and takes posting date as any date of the 12th posting period.
EX: if a transaction to be posted in spl period 13 i.e. April or spl period 14 i.e. May the document can have posting date as any date in the 12th period i.e March but generally posting date would be considered as 31st of March.
Field status variant consist of field status groups which are used/assigned at the time of GL account creation.
At the time of transaction entry/ document posting users will have N number of fields ready for input, these fields can be controlled as Required/optional/suppressed from the field status group.
To differentiate between different types of business transactions eg: Vendor invoice & payment, customer invoice & payment, general ledger document etc. Provided differentiating factor at the time of document entry itself is document type. Eg: SA, KR, KZ , DR , DZ & AA etc.
a. whenever there is a business transaction, GL accounts are the primary source to record in the General ledger b. For all sub ledger postings to integrate with GL, reconciliation GL accounts are the source to update GL C. For internal reporting in controlling module, the cost data will flow from FI to CO. The Expense GL accounts in FI will carry the cost from FI to CO by the mean Primary cost elements.
A GL account can be created at how many levels?
3 levels – a. Chart of account level – FSP0. b. Company code level – FSS0. c. Centrally – FS00 (COA & Co Code).
What is the maximum length of a GL account master record?
Yes we can post in non local currency, but the ledger balances will only display in local currency and cannot be in transaction currency.
What is open item management importance in GL master record? Which accounts are managed with this option?
Only balance sheet type accounts can be managed with this option and more over only those accounts. which requires clearing in future. We can say there are 2 conditions to maintain a GL account with open item management option Condition 1 – The GL account should be Balance sheet account Condition 2 – Requires clearing in future EX: Outstanding expenses, prepaid expenses & Bank loans etc. When the line items posted & displayed to this account will be shown in OPEN status until they get clearing in future.
It is very important to select this indicator for each and every GL master record, if not the business cannot have track of item wise postings display.
What is the sort key relevance in GL master record?
Based on sort key selection, at the time of document entry system will automatically copies onto the assignment field. EX: sort key as Posting date, system will copies posting date onto the line item automatically and at the time of display the line items will be sorted based on posting date.
If business don’t want their users to create GL accounts, from where we can restrict creation of GL accounts?
In the chart of accounts create/change screen we have an option Status “Blocked”, if we activate that indicator users cannot create GL accounts.
Change that particular GL account by selecting Block indicator for the company code.
2 levels – Document header level data & Line item level data We can get posted data from header level in table BKPF, line item level in BSEG.
What is workflow process, how it is relevant to FI module?
Generally workflow process is one of the solution to a GAP identified during blue print phase. EX: 2 tier Workflow process for posting documents – 1. Accountant enters voucher details and saves the information. Now to trigger an email to the chief accountant for review. 2. chief accountant receives an email to his inbox. He reviews the document and approves for posting. If he rejects has to send an update email to the accountant on the same. Workflow process will be customized by technical team via ABAP workflow process. To maintain Distribution list for email notifications – SO23 inbox to verify received emails – SBWP We can identify whether workflow process is triggered for a document by going to document display screen and click on Icon beside the title of the screen.
a. from FSG, assigned to the GL account master record. b. from posting keys FSG.
Generally in FI we have 3 types of account groups are available to create master records – a. GL account group (OBD4) b. Vendor account group (OBD3) c. Customer account group (OBD2) Account groups controls field status of a master record at the time of creation.
3 levels – a. Chart of account level – FSP0. b. Company code level – FSS0. c. Centrally – FS00 (COA & Co Code).
Yes we can post in non local currency, but the ledger balances will only display in local currency and cannot be in transaction currency.
Only balance sheet type accounts can be managed with this option and more over only those accounts. which requires clearing in future. We can say there are 2 conditions to maintain a GL account with open item management option Condition 1 – The GL account should be Balance sheet account Condition 2 – Requires clearing in future EX: Outstanding expenses, prepaid expenses & Bank loans etc. When the line items posted & displayed to this account will be shown in OPEN status until they get clearing in future.
Based on sort key selection, at the time of document entry system will automatically copies onto the assignment field. EX: sort key as Posting date, system will copies posting date onto the line item automatically and at the time of display the line items will be sorted based on posting date.
In the chart of accounts create/change screen we have an option Status “Blocked”, if we activate that indicator users cannot create GL accounts.
Generally workflow process is one of the solution to a GAP identified during blue print phase. EX: 2 tier Workflow process for posting documents – 1. Accountant enters voucher details and saves the information. Now to trigger an email to the chief accountant for review. 2. chief accountant receives an email to his inbox. He reviews the document and approves for posting. If he rejects has to send an update email to the accountant on the same. Workflow process will be customized by technical team via ABAP workflow process. To maintain Distribution list for email notifications – SO23 inbox to verify received emails – SBWP We can identify whether workflow process is triggered for a document by going to document display screen and click on Icon beside the title of the screen.
a. enter the transaction on the command line. b. from the transaction screen – go to menu bar – click system – click status – from system status pop up screen – note down the program name under data section.
T – code – SM36 Enter Job name – Recurring batch job Click on Step icon (F6) Enter ABAP program name – Enter variant created in step 2 – Click check Click Save Go back Save You will get a message Job recurring batch job saved with status: scheduled Click on Start condition Click on immediate Click save You will get a message job saved with status : Released Step 4: process batch input session – SM35 Select the job name – Click on process Click on display errors only Click extended log Enter Exit batch input session Enter job name – Recurring batch job Click execute Select the batch job.
If a vendor invoice posted in the system through a process – a. PO Raised by purchase department b. Goods received by stores department c. Invoice received by Finance department against the PO in the above step This procedure called PO based invoicing (MIRO) Non PO based – Direct procurement procedure, which only involves FI AP sub ledger area (FB60).
a. Vendor account group b. vendor number ranges c. vendor tolerances
a. General data – Client level b. company code data c. purchase organization data.
It is the bridge between AP sub ledger and general ledger, whenever a posting made against a vendor sub ledger account backend system updates to reconciliation account in general ledger which is assigned to vendor master record company code segment.
Its not possible, reconciliation accounts are meant for GL update via sub ledger postings.
--Purchase to payment is a process of procurement which involves or integrates FI AP module with MM – Steps – 1. PR creation by stores – ME51N 2. PO creation by purchase dept. against to PR – ME21N – No FI doc 3. Goods receipt (GR) – MIGO Acc entry – INV RM DR – GR/IR clearing CR 4. Invoice receipt (IR) – MIRO Acc entry- GR/IR clearing DR - Vendor CR 5. Payment – APP Accentry – Vendor DR - Bank check issue CR.
No, its just a commitment with vendor to provide the material.
OBYC, assign GL accounts against MM transaction keys for automatic postings. EX: For transaction key BSX assign inventory raw material balance sheet GL account.
101 – for Goods receipt.
F.13
Basically to make payments and clear vendors by using different payment methods in a mass procedure. System will check all the open invoices and picks up the invoices based on the due date calculation according to payment terms and creates cash discount line items automatically.
Yes, the scenario is customer returned the goods a credit memo will be created for that customer that requires clearing. Customer down payment but goods are not delivered – customer requires clearing.
Yes, a down payment request should exist for a vendor to make downpayment. In the APP configuration, set up all company codes for payment transactions step we need to assign special GL indicators for vendors.
To determine invoice due date app program will consider baseline date as a start date, generally invoice document date would be the baseline date.
Based on next payment run date system will consider the invoices which due date is falling before the next run and picks those invoices also in this app run.
Yes, this date is only to make system understand to pick open invoices which due date is crossing before that day.
In the additional log tab, we need to select logging types – due date check, payment method selection in all cases and line items of the payment documents.
Variant controls from which house bank the checks need to be issued and also the output print from a configured printer.
If a check or couple of checks are not printed properly during previous APP run, we can void/cancel those checks and reprint in the current APP run.
Yes, the purpose is to issue checks from different house banks as per the ranking order configuration.
1. from APP screen we can go to edit – payments – payment list. 2. additional log payment run log.
REGUP & REGUH.
AR is a sub ledger within FI area, postings made to AR sub ledger accounts are directly updated to General ledger through Reconciliation process. AR closely integrates with SD module.
If a customer is created only in FI area will consist of 2 segments data – a. General data b. Company code data If the customer is extended for SD area also there will be one more segment – c. Sales organization data
For the customer group number range interval, select the external indicator and save it. Every time a new customer created the user has to provide the customer number externally.
From customer account group level we can control master record fields.
If a sale order created, delivery completed and billing document created in SD area there will be a customer invoice generated in FI (Doc type RV) this is called PO based customer invoicing If a customer invoice posted (doc type DR) directly in FI area is called non PO based customer invoicing
If customer makes a down payment in bulk for future sales is called unknown customer down payment. The customer open invoice items can be cleared using this down payment amount. Every time, a new customer special GL residual item will be created for rest of the down payment amount.
For the customer overdue invoice amounts, by using Dunning correspondence we can remind the customer by sending letters.
9 levels and 9 letters.
Text in the letter.
No, it’s a static figure appear on dunning notice.
Order to cash the process involves FI and SD module integration.
1. sales order creation – VA01 2. delivery to customer – VL01N 3. Billing customer – VF01 4. incoming payment – F-28
At the time of check deposit: Check deposit ac Customer ac dr
To match Main bank GL account balance with actual bank account balance as bank statement.
1. Create account symbols 2. Assign GL accounts to account symbols 3. Define posting rules for business transactions 4. Assign business transactions to posting rules.
Based on interpretation algorithm system differentiates between payment documents and check numbers and makes automated entries at the time of BRS.
Cash journal allows payments only up to available balance in the CJ.
1. Sub asset master created with reference to main asset 2.Main asset master created with reference to asset class 3.In the asset class we specify account determination 4. For account determination we assign GL accounts for postings.
Chart of depreciation is the highest organizational unit in Asset accounting subledger which consist of depreciation areas.
How a depreciation is calculated on an asset during the useful life of the asset and posted to general ledger.
Generally put to use date is considered as capitalization date from which the depreciation calculation will be started.
From the screen layout rule assigned to the asset class
Assign the particular cost center in the asset master record at time dependent tab cost center field.
Asset smoothing – if this configuration change activated in the asset class, for any asset if depreciation key changed mid of the fiscal, the difference depreciation amount will be adjusted equally to remaining periods in the fiscal year. EX: As per current depreciation key every month depreciation is Rs.1000 and calculated for 6 months. Due to depreciation key changed impact, the to be calculated depreciation is Rs.1500 every month, since already we passed 6 periods and need to calculate and adjust depreciation of the closed periods to the future periods. In this case everymonth 2000 for rest of the 6months Asset catch up – for the above same scenario if we do not select smoothing check box the adjustment depreciation will be posted to immediate next period.
Through Legacy asset take over values procedure we will create clients existing assets in AS91
No, the takeover values ex: acquisition, depreciation and derived net book value are only updated in asset sub ledger tables. We need to manually post FI transaction to update the general ledger.
Planned depreciation RUN –as per the depreciation interval rule ex: monthly, quarterly etc. calculation of depreciation on a regular interval is planned depreciation. Unplanned depreciation RUN – if depreciation is not being calculated as planned and business would like to calculate depreciation till date (current period) we can run depreciation in unplanned mode to calculate for all the previous months.
With customer – Asset acquisition value – 100000, accumulated depreciation – 60000, sale of asset value – 50000.
We can run the depreciation in “repeat run” mode, so that system will identify the new assets which are added to the last period and make a depreciation posting. Note: this provision is only applicable for the last run depreciation period
Basic purpose is high level management internal reporting about costing. Ex: A department cost report for a month, A product making charges report in a batch, plant wise financial statements reports, profitability analysis reports.
Client ->operating concern -> Controlling area -> Segments -> Profit center -> Cost center
In FI we have posting period variant to open and close periods in an year to make postings, similarly in CO we can open or close periods by lock or unlock option against individual business transactions ex: COIN – CO through postings from FI, KOA0 Actual settlement
Expenditure GL account in FI will be created as primary cost element in CO with Category 01 to carry cost from FI to CO to update CO records.
Yes, the relation between controlling area to company code is 1:N, is called as cross company code cost accountancy
Secondary cost elements are used to settle cost from one cost object to other object within CO area. EX: Assessment cycle to reallocate cost from one cost center to other cost center, at the time of real internal order settlement to cost center
Departments in an organization are created as cost centers in controlling module, the purpose is to track individual department wise cost.
To identify similar departments by assigning a differentiating factor which is cost center category, cost centers will be created.
In CO cost center budgeting is macro level, for a fiscal year each period wise we can allocate budget amounts to cost centers later budget reports can be generated to see the variance between planned & actual consumption of budget.
In CO cost center planning is micro level, each period wise we can plan department wise expenses. EX: Finance cost center planning for the period 11/2013, with a combination of cost center and cost element later on we can generate variance reports.
The primary cost objects are Cost center, internal order and WBS elements, these are used to capture cost at the time of cost origin. Priority – 1. WBS element 2. Real internal order 3. Cost center We have more cost objects like profitability segments, sale orders & production orders etc.
If during the cost origin the cost captured under a cost object, on a later point of time the cost needs to be distributed to other objects. EX: canteen expenses initially paid by finance cost center on month end the cost needs to be allocated to other cost centers. Finance CC to HR CC and Sales CC etc. Cost allocation Methods: 1. Reposting of CO line items – with reference to original FI document the cost will be allocated from the cost object in the FI document to other cost objects line item wise. 2. Manual reposting of cost – with the combination of cost center and cost element we can manually allocate cost to other cost centers. 3. distribution cycle –on the month end, the cost captured under a cost center can be distributed to other cost centers using segments. The segment will have details like source cost center, receiver cost center cost distribution rules. When the cost distributed using distribution cycle, in the receiver cost center we can trance the original cost element details. 4. assessment cycle –this is also used as an allocation method on period end to distribute cost. When the cost allocated using assessment cycle the cost will be attached to secondary cost element and settled to receiver cost center, we cannot get the tracing factor in the receiver cost center about which cost has been received.
SKF is a base to allocate cost between cost centers. EX: Salaries can be allocated Based on number of employees, rent can be allocated based on the area of occupation.
Internal order is a cost object to capture cost of a specific job, activity or an investment project. EX: a particular vehicle expense during a month, construction of a building budgeted amount capture and control in CO we have 2 types of internal orders 1. Statistical internal order - Only for the reporting purpose, the cost will be captured under statistical internal order and does not settle to any other cost objects. 2. Real internal order - it’s a real cost object at the time of cost posting and requires settlement to other cost objects on the month end.
In the internal order master record control data tab we have a field Actual posted Cctr – assign default cost center in that field so that system will derive cost center at the time of document entry.
At the time of order creation we have an indicator “Statistical order” available in control data tab, if we activated this the order will be statistical if not it’s a real order.
1. define allocation structure in which specify source cost elements – ex: salaries rent etc and also specify settlement receiver category ex: cost center. 2. allocation structure is assigned to settlement profile – which talks about how the cost will be settled ex: percentage, amount etc. 3. settlement profile is assigned to internal order type. 4. real internal orders will be created with reference to order type and settlement rule maintained in the order master record.
In controlling module we can control the budget through internal orders. Ex: capital expenditure like construction of a building. We can create building as an internal order and assign budget to it. Every time expenses incurred towards building construction allows up to the budget amount fully consumed.
By implementing profit center accounting, profitability reports can be generated plant/branch/location wise. General definition is a geographic location where in expenses are incurred to manufacture a product and revenues are generated by selling that product.
At the time of expense posting user needs to enter cost center, in the cost center master record profit center is assigned through cost center to profit center derivation expenses will be updated in a profit center. Revenues will be updated to profit centers through default account assignment – OKB9.
Whenever system cannot derive profit center onto line item, it updates to dummy profit center. On the month end management will take a decision on how to distribute values in the dummy profit center.
Yes we can create additional P&L and balance sheet statements profit center wise to generate profitability reports. Postings made against balance sheet accounts will be updated to relevant profit center with the combination either company code and plant OR company code and business area.
To estimate a single product cost product costing module will be used – a. product cost by sale order - MTS b. product cost by production order - MTO c. product cost by period – Product cost collector
Controlling profitability analysis, by using which profitability reports can be generated for different dimensions. Profitability segment in CO- PA is also a cost object, whenever operating concern is configured in system new tables will be generated to store the META data – apart from COPA in no other place new tables can be generated.
It’s a combination of few characteristics or one characteristic is a segment – EX: customer master data
If customer master is a characteristic then customer number is a value field If sale order is a characteristic, quantity in the sale order is value field.
4 tables will be generated – Table 1 – Actual data Table 2 – planning data Table 3 – segment data Table 4 – totals.
In COPA we will configure output reports for the predefined characteristics and value fields this process is called report painter configuration.
