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SAP FI - Financial Global Settings and Company Code Parameter plus about Company
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This document relates to Financial Global Settings and Company Code Parameter which cover chart of accounts, fiscal year, posting period, field status variants, company code global parameters and ...

This document relates to Financial Global Settings and Company Code Parameter which cover chart of accounts, fiscal year, posting period, field status variants, company code global parameters and more. These settings and parameters will be used by the company codes that we have already created in the system in the enterprise section; firstly I just want to explain how you can activate the new G/L accounting as we will use the new features in other sections.

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SAP FI - Financial Global Settings and Company Code Parameter plus about Company Document Transcript

  • 1. SAP FINANCIALS Financial Global Settings and Company Code Parameters and about Company SAP KNOWLEDGE SHARING DOCUMENTS SAP IDES DEMO SOLUTION – ERP6 EHP5 Pramila Nagaraj SAP Certified Candidate @ Source One Management Services Pvt. Ltd Bangalore 2014 Copy Rights © SourceOne Management Services Pvt. Ltd Bangalore
  • 2. Financial Global Settings and Company Code Parameters In this section we will cover chart of accounts, fiscal year, posting period, field status variants, company code global parameters and more. These settings and parameters will be used by the company codes that we have already created in the system in the enterprise section; firstly I just want to explain how you can activate the new G/L accounting as we will use the new features in other sections. You can also view the entire configuration in the Data disk Mobile company section. As I have mentioned in my section on the New G/L, it replaces the classic financial accounting menu in the SAP IMG with a new Financial accounting menu, the screenshot below show both the classic and the new financial account menus. The blue box is the classic G/L and the red box is the New G/L If you are already using the classic financial accounting then you will need to migrate to the NEW G/L, this is perhaps were you may need SAP to help you, but if this is a new system then the steps below will activate the New G/L, from the IMG by selecting the activate new general ledger accounting as seen in the below screenshot On the resulting screen select the below checkboxes  New General Ledger is Active  Determine 'FAREA' on Entry Screen  Update 'FAREA' in CO Totals Tables  Update Segment in CP Totals Tables If you have already activated the New G/L, then you will see the screen below, also the New G/L menu appears as you have seen above You can deactivate the classic FI IMG menu paths by running the below program using transaction code SA38, and using the program RFAGL_SWAP_IMG_OLD Then selecting the deactivate old img radio button as per below You can also deactivate the menus as well using the program RFAGL_SWAP_MENU_OLD as you can see below
  • 3. Once activated the balances of the tables of classic G/L accounting (table GLT0) are also updated along with the tables of the New G/L. This enables you to use comparison reports during the implementation phase of New G/L, to make sure that it delivers the correct results. Once you are satisfied with the results you deactivate the classic G/L updating by going through transaction SM30 entering V_FAGL_ACIVECCL in the table/view field and clicking on the customizing button. Fiscal Year Variant An accounting period is also known as the fiscal year which usually runs for 12 months (each month = one period) with your company publishing a financial statement for each fiscal year as well as taking stock inventory. Each period within a fiscal year is known as a posting period. When you post transactions in the SAP system each transaction is assigned to a particular posting period (made up of month and year) and the transaction figures are updated for that period. SAP identifies documents using document type, fiscal year and posting period. It uses Fiscal Year Variants (FYV) to manage fiscal years and posting periods variants to open or close posting periods. There is also a concept called special period to manage activities such as period-end closing (audit or tax adjustments), a fiscal year can have fewer than 12 months known as a shortened fiscal year, there are two definitions for a fiscal year Calendar Fiscal Year there are 12 posting periods that correspond to the 12 calendar months, with the first posting period starting on 1st January. Normally you use the calendar as the fiscal year which means the start and end date of each posting period is the same as that of the corresponding calendar month. Depending on posting date the system will assign the correct period to a transaction. Non-Calendar Fiscal Year a fiscal year that does not corresponding to a calendar year is known as a non-calendar fiscal year, and thus such posting periods may or may not match to the calendar months. Its possible that a fiscal year has fewer then 12 posting periods (shortened fiscal year) which means you have to define the number of posting periods. The below diagram shows you what can be achieved with the fiscal year Lets see some examples to fully understand, the first example is of a posting period that is the same as the calendar month, first I will start with a fiscal year starting on 1st Jan, here you can see no year shift, this is as simply as you can get, also note 29th February which can include a leap-year. Calendar Year Calendar Month Fiscal Year Posting Period Start Date End Date Year Shift 2013 1 2013 1 1-Jan 31-Jan 0 2013 2 2013 2 1-Feb 29-Feb 0 2013 3 2013 3 1-Mar 31-Mar 0 2013 4 2013 4 1-Apr 30-Apr 0 2013 5 2013 5 1-May 31-May 0 2013 6 2013 6 1-Jun 30-Jun 0 2013 7 2013 7 1-Jul 31-Jul 0 2013 8 2013 8 1-Aug 31-Aug 0 2013 9 2013 9 1-Sep 30-Sep 0 2013 10 2013 10 1-Oct 31-Oct 0 2013 11 2013 11 1-Nov 30-Nov 0 2013 12 2013 12 1-Dec 31-Dec 0 In the next example of a posting period that is the same as the calendar month, the fiscal year starts on 1st July which means that we have a year shift in January, which means that fiscal year matches for all posting periods. Calendar Year Calendar Month Fiscal Year Posting Period Start Date End Date Year Shift 2013 7 2013 1 1-Jul 31-Jul 0 2013 8 2013 2 1-Aug 31-Aug 0 2013 9 2013 3 1-Sep 30-Sep 0 2013 10 2013 4 1-Oct 31-Oct 0 2013 11 2013 5 1-Nov 30-Nov 0 2013 12 2013 6 1-Dec 31-Dec 0
  • 4. 2014 1 2013 7 1-Jan 31-Jan -1 2014 2 2013 8 1-Feb 29-Feb -1 2014 3 2013 9 1-Mar 31-Mar -1 2014 4 2013 10 1-Apr 30-Apr -1 2014 5 2013 11 1-May 31-May -1 2014 6 2013 12 1-Jun 30-Jun -1 The last example is that of a posting period that is not the same as that of a calendar month, because the start and end dates of the posting period differ from the calendar month, you need to maintain the period end for each of the periods, you must maintain these otherwise the system will have problems in identifying the correct posting period for transactions, as you can see the fiscal year configuration can handle complex setups. Calendar Year Calendar Month Fiscal Year Posting Period End Period Year Shift 2013 8 2013 1 15-Aug 0 2013 9 2013 2 15-Sep 0 2013 10 2013 3 15-Oct 0 2013 11 2013 4 15-Nov 0 2013 12 2013 5 15-Dec 0 2013 12 2013 6 31-Dec 0 2014 1 2013 6 15-Jan -1 2014 2 2013 7 15-Feb -1 2014 4 2013 8 15-Mar -1 2014 4 2013 9 15-Apr -1 2014 5 2013 10 15-May -1 2014 6 2013 11 15-Jun -1 2014 7 2013 12 15-Jul -1 A fiscal year that is shorter than 12 months is known as a shortened fiscal year this may be the case when you start a company or switch between calendar fiscal year to non-calendar fiscal year. A shortened fiscal year is non-calendar and year-dependant and should always be followed by a complete fiscal year. If you implement FI-AA or another component such as MM, CO you need to ensure that each fiscal year begins with a period number 001, this allows asset depreciation calculations to be carried out accurately. You can do this by specifying the number of periods for both the normal fiscal year and the shortened fiscal year. If you define a fiscal year with periods for example it can contain a shortened year with eight periods (001 - 008) and the remaining calendar year having the first four periods. SAP also allows you to divide the last posting period into special periods to facilitate closing operations, the special periods help you create more than one supplementary financial statement. In G/L accounting you can have a maximum of 16 periods which includes the special periods, however in FI-SL you can use a maximum of 366 posting periods. SAP has a number of preconfigured FYV's, below are the calendar FYV's they all start with K and the number represents the number of special periods For the shortened FYV they start with a R Lastly we have the non-calendar FYV which start with a V Here is a complete list of all my FYV's in my system.
  • 5. If you wanted to create a new FYV then we use transaction code OB29, select the new entries button and fill in the details below, once saved highlight the FYV and then you select the periods folder in the left hand dialog structure box, for the Data disk Mobile company we will use the standard SAP FYV.  FYV - is a two digit alphanumeric identifier  Description - self explaining  Year-Dependant - set this indicator if the fiscal year is year-dependant that is you need to repeat the work of maintaining fiscal years every year, it will be set for a shortened fiscal year.  Calendar Year - select this if you are defining a calendar fiscal year as we mentioned above  No. of posting periods - enter the number of posting periods, maximum of 12  No. of special periods - enter the number of special periods, maximum of 4 You can now enter the periods for the FYV, this is the same as we discussed earlier, notice that although we specified that we want 4 special periods we don't define them. Now we can assign the FYV to our company codes, we did see this in the Enterprise section, this must be done before you can post any transactions, for this we can use transaction code OB37, as you can see they are already configured, to change just use the drop down list and save. If you need to create year-dependant years then you need to create new FYV and assign them to the relevant company codes every year. You don't need to close earlier fiscal year before making a posting into the new fiscal year because the new fiscal year is opened automatically by the SAP system when the first posting is made in that year. There are two tables that you can look at, one that holds the fiscal year variant (T009) the other holds the periods (T009B), in the screenshot for the period I am displaying the R1 FYV periods.
  • 6. Fiscal Year variant (T009) R1 Period (T009B) Posting Period Variant SAP uses posting period variant (PPV) to manage opening and closing of posting periods in SAP, you can have individual PPV per company code or one for all company codes depending if the company codes have different posting periods. Normally you will have only one posting period open to avoid complications, but you can have many open, you will only open special periods during closing. You can se Lets define the PPV's as per the Data disk Mobile company, for this we use transaction code OBBO, on the view/change screen select new entries, then fill in the details below, to make things easy we will name the variant the same as the company code The table that contains the posting period variant is T0100 Now we need to assign the posting period to the company codes, for this we will use transaction OBBP, when the overview screen is returned all you do is enter the posting period into the variant field for each company code and then save, the details are below We can see in the company code table (T001) the assignment for the posting period Also it is reflected in the company code data using transaction code OBY6, notice the posting period variant
  • 7. SAP provides two time intervals (period 1 and period 2) for normal FI postings and one more interval (period 3) for CO to FI postings, you will need to specify a lower and a upper limit and the fiscal year for each of these intervals, you close a period by selecting the period specifications in such a way that the period you want to close does not fall within them, you specify G/L account numbers (from account to account) for your specifications. For the sub-ledger accounts define the permitted posting periods using the relevant reconciliation accounts. To do this specify the account type (D or K) and provide the from account and to account of the reconciliation accounts. You can also open posting periods to selected users by making appropriate authorization settings in the authorization object F_BKPF_BUP and assigning an authorization group to a group of users, however the authorization group that's effect only in time period one, I won't be using this feature. Lets now create these open and close posting periods, we will use transaction code OB52,  variant name -this is the PPV name  A - known as the account type or masking (see below screenshot for values), minimally you have at least the "+" entry as per below screenshot  from acct - the lower limit of accounts (ZZZZZZZZZZ = all ranges both numeric and non-numeric number ranges)  to account - the upper account limits  from per 1 and year - the start of the opening period 1, the number is the month (1 = Jan, 2 = Feb, etc), the year is self explaining  to period and year - the end of the period 1 opening period  from per 2 and year - used to open special periods, remember 4 maximum (periods 13-16),  to period and year - the end of the special periods  AuGr - the authorization group that you can enter to allow only selected user access for particular posting periods. The account types or masking values are detailed below and are self explaining The first PPV we will create will be used by company code DD11, which will use the DD11 PPV, here you can see we have created asset, customers, vendors and G/L accounts posting periods, the + is the minimum that you should have, period 1 is the calendar year and period 2 is the special periods we mentioned earlier.
  • 8. You need to create the ones for the other variants (one each for the company code), lucky there is a copy as feature (F6) that allows you to copy the previous time intervals and make changes, in our case just the variant name needs to be changed The Table that holds the information is T001B Standard Fields We need to follow the below steps to customize the standard fields  Maintain transaction types for consolidation  Activate Cost of Sales Accounting for preparation  Enter Functional area (in objects like G/L accounts, cost elements) First we will start with transaction types, which are used in the enterprise consolidation (EC-CS) to show the historical development (such as changes in fixed assets from opening to closing balance, changes in appropriations, etc), of a financial statement item. In FL-LC (legal consolidation) these types are used to show how financial statement items are composed. They are the basis for the assignment of business transaction to a column in the asset history sheet with every transaction type belonging to a specific transaction type group. SAP already comes with preconfigured consolidation types and you should use this if possible, you can view these types using transaction code OC08, as you can see from the screenshot below a number of types have already been configured, if you do need to create an additional type then use the new entries button Below is the type 100 (opening balance), the +/- sign mean that a data entry can be made without a sign, the carryfwd trans.type field defines the transaction type to which the balance is carried forward should be posted in the new period.
  • 9. You can also see the information in table T856. We can then use the IMG to assign the transaction types to asset accounting transaction types You can see that SAP have already configured a number of them in the below screenshot. The activating of the Cost of Sales Accounting for your company codes is required to make the functional area field available for input in the master data of G/L accounts, cost elements and some CO account assignment objects, so that you can enter the functional area identifier, we will use the IMG to activate Then change the COS status to in preparation for our company codes, this now indicates that the field functional area is now ready for input in the master data of the G/L accounts, cost elements and certain CO account assignment objects, but no functional area is derived yet for posting in this company code we will set this to active when we are ready and after we have completed some of the SAP configuration. Now let’s enter the functional area in the master data of objects such as G/L accounts, etc. I will only setup a few G/L accounts and will discuss controlling in my controlling section, also see Data disk Mobile Company for details. We have already activated the Cost of Sales Accounting which means the functional area is now ready for input in the master data of P&L statement accounts, we will use transaction code OB_GLACC11, I have restricted the output by entering the chart of accounts and G/L accounts You will get a pop dialog box which I selected display all records You can then change the functional area of the G/L accounts
  • 10. You can also add additional section fields by selecting the choose selection fields button the bottom right-hand icon, if you want to filter in more detail Once completed you can then check the G/L account using transaction code FSP0, you should see the detailed control for P&L statement accounts using the functional area DD03 the manufacturing& production Customer Fields It is possible to add your own fields, these fields are designed by you and are included as additional fields in the data structure of the New G/L, during data entry you may manually input these fields or you can fill them in using automatic derivation. I will only touch lightly on customer fields and will not actually create any (Data disk Mobile) but will explain what you need to do and what you need to create your customer fields, once i get more experience with SAP i will return here and add more details. You need to complete the below steps to make customer fields available for transaction processing  Edit coding block  Include fields in total table  Define master data check  Include customer fields in Enjoy transactions Firstly you can create your own table fields in the coding block of the SAP system and use them during automatic postings in FI (G/L Accounts), MM (Inventory Management and purchasing) and CO line items. To use them in Enjoy transactions you have to assign them using include customer fields. Make sure that a field does not already exist in the SAP system, then if creating a new field determine and freeze the final format (date type and length) for the new code field because you will not be able to make changes to the field
  • 11. format or delete a coding field once its included. Once the client goes live the function include fields will be locked for the production system to ensure that no subsequent changes are made. The default setting in the system is the basic mode, but you can use expert mode, you also need the following authorizations  X_COBLMOD - new field inclusion in coding block  S_TABU_CLI - maintenance of cross-client tables  S_DEVELOP - dictionary authorization  S_TRANSPRT - transport authorization Lets understand how to include a new coding field using the basic mode, I will highlight what you need to do but I will not be creating a new field, we will use transaction code OXK3, you will first get some informational messages, then you will be taken to maintenance screen as per the screenshot below, expand the tree until you see the CI_COL (coding block customer include), To add a new field you select the add fields button, fill in the details, the field name should start with YY or ZZ and then enter the field label, data type and field length. Enter the development class that you would have created for extending the coding block, it is import that the development class is assigned to a transport layer that has the same target system as the SAP standard objects. Make sure that the test run checkbox is selected and then press the execute button, if ok then remove the test run and execute again. Then enter the correction number and repair number for the BSEG table. This is import to have both the specifications in the same transport request, so as to import the enhancement correctly into the EDI subsystem. The new field has been included into the coding block and the SAP system now creates a log of all the changes that you have made. You can include either standard fields from the accounting document or customer fields that you have added to the coding block to the total table (FAGLFLEXT) in G/L accounting, we will use the IMG Then select the total table from the drop down list (FAGLFLEXT)
  • 12. Now you can select the new field that you created, save and then activate it, the new customer field has now been added to the totals table. Now go back to the customer enhancement screen and click on the database indexes to display the below screenshot, then re-create the indexes for each of the total table, line items - actual and line items - plan One point to remember is that adding additional customer fields can have a impact on the database performance, so make sure that you test in a development and QA environment first before deploying to Production. The integrated master data is not always created in the G/L, but can be also created during integration with for example a cost center, the SAP system uses check routines to validate all the important fields for example if a particular account is valid for a specific company code or account combination. You should stick with the master checks available but if you wish to create your own you can do using the IMG On the change/view screen select new entries, here I will leave you to the documentation to create your own checks. You can use customer fields to enter G/L account items in the Enjoy transactions, below is a table with some examples where you can use customer fields.
  • 13. Transaction Transaction Code Post G/L Account FB50 Enter Invoice FB60/FB70 Enter Credit Memo FB65/FB75 Park G/L account posting FV50 Park Invoice FV60/FV70 Park Credit memo FV65/FV75 Before you can use these fields for manual account posting you must assign them to an appropriate screen variant for the G/L account items (screen 100 in the program SAPLFSKB) of the Enjoy transactions, when there is no assignment the SAP system displays a maximum of five customer fields in the same sequence as in the coding block. To view fields and to position the fields we can use the IMG include customer fields in enjoy transaction To include customer fields in Enjoy transactions we use IMG Then select the appropriate screen variant, here I list the screen variant Then you can select the new entries button and maintain the starting position as the column number if the cm field, just add more fields to the variant if you need more fields adding. The subscreen for posting transactions contain the various assignment fields and are used in account assignment transactions, use transaction code OXK1 and select the appropriate sub screen number, the numbers range from 0001 to 8999 are reserved for SAP which means you can use numbers 9000 to 9999 and 0000
  • 14. Special Fields Line item display reports come with a set number of fields that exist in the layout screen as well as several hidden fields that can be added by changing the layout of the screen, there are circumstances in which you may want to add additional fields, these fields exist in finance tables but are not accessible in the display reports. There are two ways of adding special fields to display reports depending on the report you are using, if you want to add special fields to either the classic general ledger line item display (transaction code FBL3N), vendor line item display (FBL1N) or the customer line item display (FBL5N) you can use transaction code O7R3, you can add as many fields as you like but the report may run slower, once you have added the field you should be able to access it from the report in the normal way (right-hand screenshot), the added field will appear in the hidden field list Field Status Variants In this section I will cover both Field Status Groups (FSG) and Field Status Variants (FSV), FSG control the additional account assignments and other fields that can be posted at the line item level for a G/L account, it is important to remember that field status of your account must mesh with the field status group of the posting key and/or Material Management (MM) movement types. A common posting error occurs when a field in the G/L field status group and the same field in the MM movement type field is suppressed. It is a good idea to keep as many fields as possible optional and to make only the most important fields as required or suppressed. A field can be in one of four states  suppressed - the field is hidden from view  required entry - the field is a required (mandatory) field and you are required to put a entry in  optional entry - it is up to you if you want to fill in this field, it can be left blank  display (account control) - this field is displayed at the time of creating the general ledger account but you cannot make an entry in it, this should be chosen when you can automatically fill in field values using substitution. All fields on a form will normally have a field status, however you cannot attach a field status to some fields such as those in the document header. The field status is influenced by posting keys, specifications in the document and by the field status groups. To make life easy SAP groups fields into field groups (FSG), that are defined in the company code area of each G/L account, a visual representation of this is below
  • 15. The FSG determines which fields are ready for input during document entry, you cannot enter an FSG in the customer or vendor accounts, it is determined from their respective reconciliation accounts via the G/L account number in their master records. In G/L you cannot differentiate field status by posting keys since there is only two such keys (40 and 50) for postings to G/L accounts and the status operational entry field assigned to these keys has no effect on the field status. SAP uses link rules to overcome conflicts between field statuses; we can see the rules in the table below Posting Key field status G/L Account Field Status Final Status Using Link Rule Suppressed Required Entry Optional Entry Suppressed X Suppressed X Error X Suppressed Required Entry X Error X Required Entry X Required Entry Optional Entry X Suppressed X Required Entry X Optional Entry There are 42 defined FSG in the SAP system, all starting with "G", each FSG is made up of subgroups that include the following  General Data  Additional Account Assignments  Materials Management  Payment Transactions  Asset Accounting  Taxes  Foreign Payments These will appear in blue or black, if in black all the fields will be suppressed as they are not relevant for that particular FSG. A screenshot of the FSG is below which was obtained by using transaction code OBC4, for example payment transactions is in black which means that all the fields are suppressed, where as general data is in blue which means at least one field is either optional or required SAP comes delivered with FSV 001 which you can copy and make the required changes for your company codes, do not change 0001 and leave it as a template, lets create a a FSV for Data disk Mobile called DD00 by copying FSV 0001, we will use transaction code OBC4, highlight FSV 0001 and select the copy as button, then in the change/view screen change the name of the FSV to D00, then select the green tick button
  • 16. The following dialog box appears, select copy all You can see that 41 FSG's were copied Eventually you are returned to the starting screen and you can see the DD00 FSV. You can also view table T004V for the above information Now lets change the following fields in FSV DD00, remember to save your changes  change the business area in FSG G004 ( additional accounts assignment) to required  change the reason code in FSG G005 (payment transactions) to optional  change the payment reference in FSG G005 (payment transactions) to optional
  • 17. Lastly we assign the FSV to the company codes, we will use transaction code OBC5, simply select the FSV from the drop down list and save. We will also discuss the fields in detail in my posting section. You can view the link in table T001, the column to look at is FSTVA Ledgers for G/L Accounting We have already touched on ledgers in the New G/L section, now we will expand more on this, all the ledgers you define in this section will be based on the new totals table FAGFLEXT, the ledgers are classified into leading and non- leading ledgers Leading Ledger The leading ledger is integrated with all subsidiary ledgers, designate one of the ledgers as the leading ledger and this will be updated in all company codes. This ledger automatically receives the settings (like currency, FSV and PPV) that apply to a company code. There is only one leading ledger per client and you should use the SAP supplied totals ledger 0L as your leading ledger. Non-Leading Ledger Defined as parallel ledgers to the leading ledger you need to activate these ledgers manually for each of the company codes, you can use them to represent the Generally Accepted Accounting Principles (GAAP) applicable for the country wherein your company is located. Such ledgers can have a different FYV, second or third parallel currency than that of the leading ledger in each of the company codes. When you create a non-leading ledger SAP automatically creates a ledger group with the same name. We will use the leading ledger 0L but create three non-leading ledgers for more details see the Data disk Mobile section, we will use the IMG You can see the ledger 0L already configured, now you can rename the 0L but I will leave it, as you can see 0L is the leading ledger. To create the other non-leading ledgers select the new entries button and fill in the details regarding the three non- leading ledgers and save, make sure that the leading checkbox is not ticked As I mentioned above three groups will also be created with the same name, a informational message details this as the non-leading ledgers are created. Now we need to define the currencies for the non-leading ledgers that we just created, for the leading ledger you can define two additional currencies (called parallel currencies), in additional to the company code currency (first local currency), these additional currencies may be group currency, global company currency, hard currency or index-based currency (I have already discussed currencies in my enterprise controlling area section), the first currency is already defined when the company codes were setup, since the leading ledger automatically takes the settings as currencies from the company codes lets define the additional currencies of the non-US company codes there the first local currency is different from the first local currency of the US-based company codes of DD, we will use transaction OB22, if you don't see the company codes then use the new entries button
  • 18. Then fill in the details for the second currency, you may get a error stating that you cannot set the Valuation (see below) ,  crcy type - a appropriate currency type, here we will 30 the group currency which is USD for DD  valuation - this requires some configuration which I will explain below, you can leave this blank  exrate type - this is used for the buying, selling or average rate for translating foreign currency amounts, use the average rate for currency translation and the bank buying, selling rate for valuation foreign currency amounts  srce curr - we will select the translation currency (1)  trsdte typ - this indicates the translation date type to determine the date to be used for translating the transaction amount. You can also view table T001A for the above information If you get an error relating to the valuation then using the IMG below, you have to activate the parallel valuation per controlling area, which we use the option in the red box below You assign a suitable currency and valuation profile to that controlling area, once completed you then use this valuation profile to link the valuation view to a currency type by selecting the appropriate valuation from the drop down menu for the currency type define above, you should end up with something like below, I will cover this in more detail in my controlling section, you should now be able to set the valuation in OB22 Now we will define the currencies for the non-leading ledgers, the first currency is always the same as the leading ledger currency, we when define the second currency and set the FYV, to do this we will use IMG
  • 19. First we select the Ledger D2, then select new entries Now select the company code (DD13) from the drop down list and hit enter, this will pre-populate the first currency, then enter the details for the second currency and the PPV (posting period variant), don't forget to do the same with the non-leading ledger D1 A Ledger group is a combination of ledgers that simplifies G/L accounting processing, since you can apply certain functions to the group as a whole, as you know when you create either a leading or non-leading ledger a group is also created which as the same name, certain functions will then have a ledger group option if you leave this blank then all postings are are posted to all ledgers, only use the ledger group option if you want to post to a specific ledger group. Within a ledger group you need to designate one ledger as the representative ledger for that group, this ledger will determine the if posting period is open for that group, if the posting period is open then the system posts to all ledgers even if the period is not open in some of the non-leading ledgers. There are different ways of designating a ledger as the representative ledger of a group, 1. If the ledger only contains one ledger then that ledger will be the representative group 2. In a group of ledgers the leading ledger will be the representative leader 3. If the group contains more that one non-leading leader with each one having a different FYV than that of the company code, then you can make any one the representative leader 4. If the group contains more that one non-leading leader with each one having a FYV the same as that of the company code, then that will be the representative leader We will create a ledger group that combines the leading ledger 0L and a non-leading ledger DD3, we can then assign the accounting principles IAS and US GAAP to the ledger group, first lets create the ledger group we will use the IMG On the change/view screen select new entries, then fill in the details below, save and return back to the change/view screen
  • 20. Now select the DDLG ledger group and select the ledger assignment folder on the left hand side, add the 0L and D3 ledgers, make sure that 0L is the representative group A scenario combines the customizing settings from different business views with each of the views specifying which posting data (such as cost center update or profit center update) is transferred from different application components in G/L accounting. For each scenario the system transfers the posting data relevant for G/L accounting from the actual and plan documents, you can only use the SAP delivered scenarios as you cannot create your own. From the IMG We can display the scenarios Then using the IMG we can assign the scenarios to the ledgers, leading ledger 0L already has all the scenarios assigned by default For each non-leading ledger we assign all the scenarios as per non-leading ledger D1 below, on the display/view screen highlighting the ledger and select the scenario folder and one by one add the scenarios At this point if you made any customer fields you can assign them to the ledgers here, by returning to the display/view screen and highlighting the ledger and selecting the customer fields folder and adding you customer fields. Now lets maintain the versions for the ledgers, dependant on a fiscal year you will use a version to specify if actual data is recorded, if manual planning is allowed and whether planning integration with CO is activated, again highlight the ledger and select the versions folder and fill in the details as below, with integrated planning you will be able to transfer the plan data from CO-OM and CO-PA.
  • 21. Remember to the above for all ledgers before moving on to the next part. Now we can activate the cost of sales account if we did not do this you will not be able to derive or update functional areas while posting transactions, remember earlier we put it into preparation, now we activate it, use the IGM And then change the COS status to active and save Now we have completed all the ledger-related settings for all the company codes that we have defined. Parallel Accounting I have broken this section out as it was getting a bit too large to fit in this section, see Parallel Accounting. Chart of Accounts One of the first big hurdles is settling on a chart of accounts, before discussing the chart of accounts it is essential that both you and the client personnel responsible for design decisions have a clear understanding of the differences between FI and CO, the main reporting purposes of FI is external legal reporting to outside authorities (Securities and exchange commission, Internal Revenue Service, etc), the main reporting of CO is internal managerial reporting. It is common for chart of accounts to include general ledger accounts, geographic regions, departments codes, etc. The chart of accounts is a grouping of G/L accounts that forms the framework for recording accounting transactions in a structured way, each G/L account is made up of an account number, name and some control information. The control information decides how an account is created (in the company code) and posted too. SAP comes with a number of chart of accounts to meet statutory and legal requirements of various countries, besides an international chart of accounts (INT) which can be used in any country. There is some terminology regarding the chart of accounts that you need to know Operating Chart of Accounts is used to record the day-to-day transactions in the company code, it is also know as the standard chart of accounts both FI and CO make use of these element. This can be different from the country chart of accounts. Each company code will work with exactly one operating chart of accounts though the same chart can be assigned to more than one company code. Country Chart of Accounts is used to meet the country-specific legal requirements, though it is optional to assign to a company code you will need it when you work with a different operating chart of accounts, you can establish the link by entering the country charts G/L account number in the alternate account number field of the G/L master record (under company code section) of the operating chart of accounts Group Chart of Accounts is used for consolidating all company codes (with different operating chart of accounts) belonging to a company, the assignment of group chart of accounts to a company code is not mandatory, this is also known as the corporate chart of accounts. Chart of Accounts List The collection of various charts of accounts that can bed used in a client is known as the chart of accounts list, you will add all the charts of accounts that you may need in this list so as to meet the statutory or legal requirements, location requirements and corporate reporting requirements of several company codes of your company. Lets create the two new chart of accounts for DD13 and DD22 also see Data disk Mobile company for more details, for this we will use transaction code OB13, on the view/change screen select the new entries  Chart of accts - a four-character identifier  Description - self explaining  Maint.language - We will select English for all chart of accounts  Length of G/L account number - the length of the G/L account, a maximum length of 10 can be used.  Controlling integration - used to indicate how the system should be create the cost elements when New G/L accounts are created
  • 22.  Group Chart of Accts - This is used for company consolidation, the CONS chart of accounts is used as the group chart for the operative chart of accounts CAUS. For consolidation define the balance sheet and P&L by using group account number you do not need to create them separately for each country.  Blocked - this is used to block the creation of any New G/L accounts in the company code from this charts of accounts DDGB (Chart of Accounts) DDJP (Chart of Accounts) When you return to the view/change screen, you should see the newly created chart of accounts, you can also view table T004 Now we will assign our newly created chart of accounts to the company codes, we will use transaction code OB62, on each company code use the drop list to select the country chart of accounts, we only need to do this for company codes DD13 and DD22, you can also view the settings in table T001. You can also use transaction code OBY9 to transport a set of chart of accounts from one system to another. Company Code Global Parameters In SAP a company code as I have mentioned is a representative of a stand-alone legal entity that requires its own set of accounting records for reporting purposes. Before we finish off the company code configuration I want to create a workflow variant, this allows you to group and route the documents processing of several company codes, the workflow variant helps in posting and payment release which are routed to users and processes in the system for approval or further processing. We will use transaction code OBWA also see Data disk Mobile company for more details, on the view/display screen select the new entries button and fill in the details below, for the time being we will create a blank entry and I will discuss this further in my accounts payable section. After you have saved you will see the workflow variant in the view/display screen
  • 23. Now we will finish off the configuration of the company codes, for this we will use tranaction OBY6, the global parameters control how a company code behaves in the system, these parameters influence the way system process the business transactions. All 35 parameters are grouped into two categories  Accounting Organization  Processing Parameters I will now discuss what each parameter does Accounting Organization chart of accounts the chart of accounts that will be used for this company code company the company is different from the company code, a company is generally used in the legal consolidation module to roll up financial statements of several company codes. A company can consist of one or more company codes. credit control area this controls the credit limits (tolerances) for your customers, a credit control area can be linked to one or more company codes. ext co code select this box only when you use the company code as external entity so as to use the document entry function for external SAP systems, the setting is only relevant if you are using ALE. company code is productive set this indicator when all the customizing data transfers are complete and yo are ready to go live, when set the system will prevent resetting of data for a company code, which basically means you cannot delete any data from the company code. country chart of accounts use this when when a country chart of accounts is different from the operating chart of accounts FM Area FM areas are used for advanced functions of the treasury module, more specifically for funds management which allows you clients organization to budget commitments and financial resources, they can contain more than one company code. Fiscal Year Variant See Fiscal Year for more details Global CoCode in conjunction with ext.co.code enter the cross-system company ID of the external company code that will be used in the document entry function as a sender or receiver, this is only used if you are using ALE. VAT Registration No used within the European Union for tax-exempt deliveries for the EC sales list. (Enter one for the UK company) Processing Parameters Document Entry screen variant you can use this for entering country-specific features in document processing, we will select 2 as we require for extended withholding tax. Field status variant the FSV groups together several fields status group to specify which fields are required, optional or suppressed when processing transactions. pstng period variant the PPV controls the opening and closing of posting periods for each company code. Max Exchange rate deviation if you are working with different currencies in your organization enter the maximum percentage rate in which a foreign currency transaction can deviate from the rates entered in the exchange rate tables, an exchange rate can deviate because SAP gives you the option of specifying an exchange rate when entering a document in a foreign currency. If the exchange rate is entered manually on the document deviates from the exchange rate specified in the exchange rate table by more than the percentage specified in this field a warning message is displayed Sample acct rules var used for the creation of G/L accounts which acts as the template from which certain data can be transferred to newly created G/L accounts, the transfer is controlled by data transfer rules. Workflow variant allows grouping to route documents in posting and payment release, see company code global parameters for more information Inflation method only used for inflation accounting functionality, SAP have inflation indexes that are predelivered, they are specific to a country. Crcy transL for tax leave blank for the system to pull the exchange rate from the document header for translating the tax amounts into local currency balances. You can have alternative options such as manual entry of exchange rate or the exchange rate to be based on the posting date or document date CoCD -> CO Area used for the controlling area, see the controlling section for more details. Cost of sales accounting actv used for functional areas in your master data, thereby creating an additional dimension for categorizing costs. Negative postings permitted the system will make an entry with an opposite sign for reversals, this negative posting will not increase the trail balance on either side. Active CM used to activate cash management and liquidity forecast, additional information will be stored for purchase orders, sales orders, etc relating to transactions affecting liquidity within the treasury module Business area fin this draws business area financial statements, when select the business area is made mandatory during data entry for postings Proposal fiscal year select when using year-dependant document number ranges, when selected the system defaults to the last document number processed along with the corresponding fiscal year during transaction postings Define default value date sets the current date the default date for the value date for the line items No forex rate diff when clearing in LC used to control how foreign currency open items are cleared in local currency. When selected the systems clears the foreign currency open items using the prevailing exchange rate when those open items were created Tax based is net value the cash discount is deducted from the total invoice amount to calculate the tax base by means of this setting, whether this field can be used is based upon the laws of the country where the company conducts business. For example lets say an invoice is $100 but offers a discount of $2 for payment within 10 days, the tax base is $98 the total invoice amount ($100) less the cash discount ($2), the tax calculation carried out by the system will then be $98 times the applicable tax rate. If this was not set the tax would be $100 the total invoice amount. Discount base is net value the system ignores the tax amounts to arrive at the discount base for calculating discount. The discount will be on invoice amount less the tax, when not selected the system includes the tax amount as well in arriving at the discount base. For example an invoice is $225 and offers a cash discount of 2% if paid within 30 days, of the total invoice amount $200 relates to materials and $25 relates to sales tax. if this indicator is set the cash discount base will be $200, the amount of the materials only, relating to a total payment of $221 that is $200 * (1.00 - .02) plus the $25 tax amount. if the indicator is not set then $220.50 that is $225 * (1.00 - .02). For countries that uses tax jurisdictions for their tax procedure this field is ignored. Financial assets mgmt active this controls the reporting and processing of incoming payments and their clearing in the customer area and is used to pass on payment information (especially to the loans subcomponent of treasury management) when using bank account statement processing and the payment program Purchase acct proc used for additional postings are carried out during the posting of receipts of goods and services. Purchase accounting segments the cost of externally related materials, for example you would want to utilize purchase account processing if you do not want freight values for moving average-priced materials to be included in your inventory balance. JV accounting active used for joint-venture accounting Enable amount split this enables splitting and posting of an invoice or credit memo, on payment terms or payment method, this function is possible in the
  • 24. invoice or credit memo entry single-screen transaction developed as an Enjoy transaction Tax Reporting date active reports the date for tax reports The only difference between the company codes is the country chart of accounts for DD13 and DD22, and the workflow variant for the US based companies. Now we can create the two remaining company codes DD12 and DD21 both of which are US based companies, which means we can use company code D11 as a template to create these company codes. A VAT Registration number will be entered for the UK company code DD22 you can make this number up or obtain one from the internet. We will use the IMG or you can use transaction EC01 Double-click the copy, delete, check company code line Then select the copy org object button (two sheets of paper) Now enter the details below, here we are copying DD11 to DD22 You will get a number of informational messages which are self-explaining, the information message below we will keep the same currency, so answer no here
  • 25. When you have create both company codes (DD12 and DD21) using DD11 as a template you can check by selecting the completed activities tab We will have to make some configuration changes to both DD12 and DD21  Change the Company name (see below screenshot)  Enter a company (DD12 = DD1000, DD21 = DD2000)  Enter a FM area (DD12 = DD10, DD21 = DD20) Declaration: This is related to my Practice in Demo System ERP6 EHP5 since after my SAP Certification. I have taken guidance from SAP Expert of UK who had given me full instructions on how to go about with certain configurations in Financials. I have successfully completed one Configuration Cycle.
  • 26. Data disk Mobile Data disk mobile is a fictitious company that will be used as a model company to learn the SAP FI/CO module, I will try and use all features in FI/CO to demonstrate how you configure and use these features. I will be referring back to this page from other sections but decided to keep it on its own page so that you can print it and use it without having to find the information buried in others sections. This section will basically follow the sequence of steps of configuring SAP FI/CO for example create company, then organizational units, etc, the sequences of steps can take a different order and you or your company may have its own sequence of order. The idea of this page is that if you can configure the SAP system just using the notes below and the odd looking up of the transactions codes then you have a very good grasp of how to configure the SAP system. I will tweak and change a few things of this page as time goes by to perhaps include Controlling , Sales and Distribution and Materials Management, which will include invoices and delivery/dispatch notes, etc to make it feel like a real company but his will take some time. Data disk Mobile Data disk Mobile has its headquarters in Florida, USA, and it is in the business of manufacturing and distribution of mobility products, the consumer products are handled by a company called DD Consumer Products which is based in Florida, it started with manufacturing and distribution of house fixtures and lighting/security in 1990 and obtained a mobility aids manufacturing company based in Japan in 1993. In 1994 it obtained a mobility vehicle company based in Florida which was renamed to Data disk transport and then in 1995 obtained a company in the UK which manufactured lifts (stair and floor) and hoists. You can see how the company is organized in the below diagram for a SAP point of view. To summarize what each company produces, its location and currency, see the below table Client Company Name Category Products (All manufacture and distribute) Location Currency DD Mobility DD Consumer Product House Fixtures baths, sinks and toilets Florida, USA USD Lighting and Security lighting and security devices Florida, USA USD Mobility Aids walking aids (walking sticks, walking frames, zimmer frames, etc) Tokyo, Japan JPY DD Transport Mobility Vehicles two mobility vehicles a basic model and a deluxe model Florida, USA USD Mobility Stair/Floor lifts one model of a stair lift and and one model of a floor lift, a number of different hoists. Milton Keynes, UK GBP The company addresses are below Company Headquarter Address Manufacturing and Distribution categories Manufacturing and Distribution location DD Consumer Product 110 Ivy Meadow Park Orlando Florida 32820 USA House Fixtures 110 Ivy Meadow Park Orlando Florida 32820 USA Lighting and Security 340 Ivy Meadow Park Orlando Florida 32820 USA Mobility Aids 3-7-1 Kasumigaseki Chiyoda-Ku Tokyo 1000013 Japan DD Transport 110 Ivy Meadow Park Orlando Florida 32820 USA Mobility Vehicles 1374 Ivy Meadow Park Orlando Florida 32824 USA
  • 27. Mobility Stair/floor lifts 200 Industrial Park Middleton Milton Keynes MK10 4RE England I will presume that everyone's default language will be English and all the contacts will be pvalle@datadisk.uk Credit Control Data disk mobile will have three credit control areas DD10, DD13 and DD20, the credit control data will be automatically populated while creating the master records for new customers, as the system can automatically create the credit master record when at least one of the fields (risk category, credit representative group or credit limit) is maintained in the relevant credit control area, the initial credit limits and currencies for Data disk Mobile is below, initially we will create the credit control areas and then dive into risk management later. Credit Control Area Credit Limit Currency DD10 15,000 USD DD13 940,000 JPY DD20 10,000 USD Here is a diagram of the credit control area setup Business Area's Data disk wants to implement business area financial statements for internal reporting, so we will setup the below business areas, we will try and use meaningful names as you are restricted to only four characters Business Area Company Codes Description ELEC DD12, DD21, DD22 Electronics NELE DD11, DD13 Non-Electronics FIXT All Company codes of DDCP (DD11, DD12, DD13) Fixture and Fittings MTRA All company code of DDMT (DD21, DD22) Mobile Transport SERV All Company Codes After-sales service A diagram of the above can be seen below Segments For Data disk mobile we will define several business segments, as per the below table, you can add more if you so wish
  • 28. Segment Description 10BATHS Baths 11SINKS Sinks 12TOILETS Toilets 20LEDLTS LED Lights 21LIGHTOT Lights Others 25ALERTB Security Alarm Basic 26ALERTD Security Alarm Deluxe 30STICKS Walking Sticks 31FRAMES Walking Frames 32ZIMMERS Zimmers Frames 40VEHCB Mobility Vehicle basic 41VEHCD Mobility Vehicle deluxe 50STAIRS Electric Stairs Lifts 51LIFTS Electric Floor Lifts 52HOISTS Hoists Financial Management Areas We will create two financial management areas one for each company Financial Management Area Company Codes Description DD10 DD11, DD12 , DD13 Financial Management Area for DDCP DD20 DD21, DD22 Financial Management Area for DDMT We do not want to track the purchase orders and parked documents as commitments in cash budget management, but we want to track them as just payment flows. DD Mobility has initially indicated that every business transaction posted in accounting is to be updated immediately and directly to cash budget management, so that for example when a payment is posted with clearing, the payment appears immediately in cash budget management, in the expenditure/revenue item in the invoice, the commitment for the invoice is reduce to zero. However, realizing that such a requirement may result in huge processing load for the system, DD decided to clear such items using batch processing. Functional Areas We will create five functional areas as below Functional Area Description DD01 General Administration DD02 Sales and Marketing DD03 Manufacturing and Production DD04 Research and Development DD05 Services and Servicing Controlling Areas We will create two controlling areas and assign companies DD1000 and DD2000 to these CO areas Financial Management Area Company Codes Description DD10 DD11, DD12, DD13 CO area for company DD1000 DD20 DD21, DD22 CO area for company DD2000 Profit Centers We will create a number of profit centers to reflect its internal management, first a hierarchy structure will be created in the controlling areas (DD10, DD20), then we will create the profit centers and then assign them to the hierarchy structure and a segment. Controlling Area Profit Center Top Level Profit Center Group Level Profit Center Group Level Profit Center Description Segment assignment DD10 DD10-H1 DDCP DDHOUSEFIX BATHS Baths 10BATHS SINKS Sinks 11SINKS TOILET Toilets 12TOILETS DDLITSECR LEDLITS LED lights 20LEDLTS LIGTOTH Lights Other 21LIGHTOT ALARMB Basic Alarm 25ALERTB ALARMD Deluxe Alarm 26ALERTD DDMOBAIDS STICKS Walking Sticks 30STICKS FRAMES Walking Frames 31FRAMES ZIMMERS Zimmer Frames 32ZIMMERS DD20 DD20-H1 DDMT DDVEHICLES VEHICLEB Basic Vehicles 40VEHCB
  • 29. VEHICLED Deluxe Vehicles 41VEHCD DDLIFTHOIS STAIRS Stair Lifts 50STAIRS FLOOR Floor Lifts 51LIFTS HOISTS Hoists 52HOISTS Fiscal Year Variant (FYV) We will use SAP's standard K4 FYV for each company code Posting Period Variants (PPV) First we will create the following five PPV's matching the company code names  DD11 - Posting Period Variant for DD11  DD12 - Posting Period Variant for DD12  DD13 - Posting Period Variant for DD13  DD21 - Posting Period Variant for DD21  DD22 - Posting Period Variant for DD22 Then assign each variant to the appropriate company code, then create the following opening and closing periods for each company code DD11-DD22 Variant A From Account To Account From per.1 Year To Period Year From per.2 Year To Period Year AuGr DD11 + 2 2013 12 2013 13 2013 16 2013 DD11 A ZZZZZZZZZZ 2 2013 12 2013 13 2013 16 2013 DD11 D ZZZZZZZZZZ 2 2013 12 2013 13 2013 16 2013 DD11 K ZZZZZZZZZZ 2 2013 12 2013 13 2013 16 2013 DD11 S ZZZZZZZZZZ 2 2013 12 2013 13 2013 16 2013 Standard Fields We will use SAP standard fields and activate the cost of sales accounting, we will also assign the following functional areas for a number of G/L accounts, for each of the G/L accounts you will see the detailed control for P&L statement accounts using the functional areas DD03/DD01, in the real world you would go through each G/L account and assign where needed.  235000 - DD03  236000 - DD03  237000 - DD03  239000 - DD03  240000 - DD01 Customer Fields We will not be creating any customer fields for Datadisk Mobility, I may revisit this when my SAP experience has grown. Field Status Variants (FSV) We will create a FSV called DD00 by copying SAP's FSV 0001, we will also change the following FSG's inside the DD00 FSV  change the business area in FSG G004 ( additional accounts assignment) to required  change the reason code in FSG G005 (payment transactions) to optional  change the payment reference in FSG G005 (payment transactions) to optional Ledgers We will use the SAP leading ledger 0L (you can rename the description if you wish), we will create 3 non-leading ledgers Non-leading ledger Company code Description D1 DD22 used by UK-based companies D2 DD13 used by Japanese-based companies D3 DD11, DD12 and DD21 used by US-based companies We will need to define the currencies of leading ledger for each company code DD13 and DD22 DD13 and DD22 Crcy Type 30 Valuation 1 (leave blank if not setup)
  • 30. ExRate Type M Srce curr 1 trsDte typ 1 Define the second currency for the non-leading ledgers D1 and D2, the first currency will already be defined and we will also assign a posting period variant (PPV). Company Code C2 Crcy 2 PPV D1 30 USD DD13 D2 30 USD DD22 We will create a ledger group that combines the leading ledger 0L and a non-leading ledger DD3, we can then assign the accounting principles IAS and US GAAP Ledger Group Ledgers DDLG 0L and D3 Now we need to assign the SAP delivered scenarios to each of the non-leading ledgers Scenario Non-leading Ledgers FIN_CCA D1, D2, D3 FIN_CONS FIN_GSBER FIN_PCA FIN_SEGM FIN_UKV We also active the cost of sales Lastly we will create a version for each of the ledgers D1, D2 and D3 D1, D2 and D3 version = 100 man Plan = checked Integ Planning = checked description = any thing you like Parallel Accounting We will define a real-time variant called DD00 for integration of CO line items with FI, this will be used for all company codes, also the below will be implemented  All documents irrespective of posting date have to be transferred in real time  Account determination should be carried out during the transfer  All postings across the company codes, business areas, profit centers, functional areas and segments will be enabled. First define the accounting principles and assign ledger groups, if not already created Accounting Principle Description Ledger Group 01 Local GAAP D3 60 International Accounting Standards (IAS) 0L 90 IAS / GAAP DDGL 91 Local GAAP - Japan D2 92 Local GAAP - UK D1 Create the below valuation areas Valuation Area Valuation Method Crcy Type Add curr 01 DEMO Company Code Currency 60 DEMO Company Code Currency 90 DEMO Company Code Currency, Group Currency Group Currency 91 DEMO Company Code Currency Group Currency 92 DEMO Company Code Currency Group Currency Assign the valuation areas to the accounting principle Valuation Area Accounting Principle 01 01 60 60 90 90 91 91 92 92
  • 31. Define the variant for real-time integration  var for R-T Integ - DD00  R-Time integ:Active - checked  Acct Deter:Active - checked  Document Type - JE (G/L account posting)  cross-company-code - checked  cross-business-area - checked  cross-functional-area - checked  cross-profit-center - checked  cross-segment - checked Assign variants for real-time integration to each US company code Real-Time Variant Company Codes DD00 DD11, D13, DD22 Chart of Accounts We will use the CAUS chart of accounts as the operative chart of accounts for all the company codes. In addition the company code in the UK will use the DDGB chart of accounts (we will copy CAGB), and the Japan company code will use the DDJP chart of accounts (we will copy CAJP) as their country chart of accounts. DD will also use SAP's default group chart of accounts CONS associated with CAUS Country Chart of Accounts CAUS DDJP DDGB Company Code DD11 DD12 DD21 DD13 DD22 Operative Chart of Accounts CAUS Group Chart of Accounts CONS We will use 8 digit G/L account numbers as of G/L accounts of CAUS for the newly created chart of accounts, the maintenance language will be EN, cost elements will be created automatically when G/L accounts are created in the SAP system. so we will setup a default cost element category well before the creation of the G/L account. Company Code Global Parameters To finish off the company code global parameters we need to configure the below  configure the country DDJP chart of accounts for DD13 and DDGB chart of accounts for DD22  All company code should use the SAP standard K4 for there FYV  A document entry screen variant which will facilitate country-specific processing of withholding tax for all company codes  use FSV DD00 across all company codes  Each company code will use there own respective PPV  A minimum of 10% will be allowed as the permitted deviation if there is a difference in currency transaction due to exchange rate differences.  If foreign currency items are cleared in local currency (LC) the local currency amount stored in the document is to be used as the amount to be cleared  All the US based companies will use the workflow variant DDUS to manage the posting and payment release  Negative postings should be allowed so as not to inflate the trail balance  The system should allow splitting an invoice or credit memo final amount As mentions above we will create a blank workflow variant and then discuss this in more detail in out accounts payable section. Document Types Data disk Mobile will create a new document type JD (Journal entry), we will also make use of user authorization to control closing postings through document type SX, a reference number is also to be mandatory input for all documents relating to customer/vendor invoices (DR/KR) and credit memos (DG, KG, RE and RN), we will also use the same document type for document reversals, except if the number range is external, in such a case a new reversal document type will be created and an internal number will be assigned. Document Number Ranges Data disk Mobile will define internally assigned number intervals (numeric) for most of the document types, except for JD. They will be year-specific so that you maintain small number intervals for each of the ranges. These number ranges will be created on all company codes D11, D12, D13, D21 and DD22. JD external with number range of A100000000 - A199999999 X1 internal with year 2013 with a number range of 9100000000 - 9199999999
  • 32. Posting Keys Data disk Mobile will use the standard SAP supplied posting keys, but if you want to change any you should copy an existing posting and make changes to the copy, try not to change any of the supplied posting keys, you can also create your own if needed. Tolerance Groups Data disk Mobile will define a number of tolerance groups (including a null tolerance group) DDUS This group will be used by specific employees of US based companies with the following limits  allow posting of documents to a maximum of USD 999,999,999  per document item with a limit of USD 99,999,999  they can process cash discounts at 3% per line item  a maximum payment difference of 1%  subject to an absolute maximum of USD 50  cash discount adjustment will be USD 10 DDGB This group will be used by specific employees of UK based companies with the following limits  allow posting of documents to a maximum of GBP 999,999,999  per document item with a limit of GBP 99,999,999  they can process cash discounts at 3% per line item  a maximum payment difference of 1%  subject to an absolute maximum of GBP 25  cash discount adjustment will be GBP 5 DDJP This group will be used by specific employees of Japanese based companies with the following limits  allow posting of documents to a maximum of JPY 999,999,999  per document item with a limit of JPY 99,999,999  they can process cash discounts at 3% per line item  a maximum payment difference of 1%  subject to an absolute maximum of JPY 70  cash discount adjustment will be JPY 15 Null tolerance group This group will be used by most of employees of DD based companies with the following limits, this applies to USD, GBP and JPY  allow posting of documents to a maximum of 900,000  per document item with a limit of 50,000  they can process cash discounts at 1% per line item  a maximum payment difference of 0.5%  subject to an absolute maximum of 15  cash discount adjustment will be 5 Texts for Line Items You can predefine text for line items which save you from having to input the same text for line items, Datadisk Mobility will define the below text keys  DGD - damaged goods deduction  EMMP - emergency purchase of paper as there is not time to get approval  FRD - freight deduction  MDD - miscellaneous deduction Default Values Data disk Mobile will use the SAP standard supplied default values. Document Parking Data disk Mobile wants all the parked documents to be posted with the system date as the posting date. Validations and Substitutions Data disk Mobile wants to have an additional check in place to make sure that business units for company code D11 are only FIXT and SERV, we will also create a substitution to change. Tax on Sales and Purchases Data disk Mobile will only configure settings that are relevant for the US, this is because DD uses an external application together with tax administration at the jurisdiction level. Therefore I will leave you to investigate the tax settings for the UK and Japan. As DD wants the tax calculation at the jurisdiction level in the US using the popular third party tax application (Vertex) that interfaces with SAP. DD will select the correct tax procedure for the US as supplied by the system. Similarly SAP's standard procedure will be used for UK-based Company and Japanese based
  • 33. company codes. No custom procedure needs to be defined for any of the DD company codes. We will use the following tax procedures US based company codes DD11, DD12, DD21 TAXUSX GB based company codes DD22 TAXGB JP based company codes DD13 TAXJP Tax jurisdiction code identification will be 100% compatible with the external application (Vertex), also tax on sales and purchases (in the US) is to be calculated on line item basis within MM and FI, so as to pass on material-specific data and to have reporting capability at the line item level. Data disk mobile will be using an external system, so the user should not have to enter the tax amount, however if intervention is required the system should issue a warning should the tax be entered by the user be different from the amount calculated automatically by the system. Tax Code Tax Type Details Use Condition Type Relevant to Tax Tax category O0 A exempted A/R sales tax sales orders, billings and A/R for (customer or material) exempt transactions XR1 to XR6 2 0 or blank I0 V exempted A/P input sales tax PO, Invoice verifications and A/P for (ship-to location or material) exempt transactions XP1I to XP6I 2 0 or blank O1 A A/R sales tax sales orders, billing and A/R XR1 to XR6 0 or blank 0 or blank U1 V A/P self-assessment or use tax PO, invoice transactions and A/P XP1I to XP6I 0 1 XP1U to XP6U 0 1 Data disk Mobile will use the following withholding tax types to support invoice posting 42 1042 Compensation FE 1099 Federal withholding tax IC 1099 Independent Contractor status ST 1099 State withholding tax EX Exempted from WT Data disk Mobile will use the following withholding tax types for payment posting relating to certain government payments (1099-G) G1 1099G reporting excluding WT (Withholding Tax) GT 1099G reporting including WT (Withholding Tax) Data disk Mobile will the below recipient types for 1042 reporting Recipient Type Description 01 Individual 02 Corporation 03 Partnership other than a withholding foreign partnership 04 withholding foreign partnership or withholding foreign trust 05 Trust 06 Government or international organization 07 Tax-exempt organization (IRC section 501[a]) 08 Private foundation 09 Artist or athlete 10 Estate 11 US branch treated as US person 12 Qualified intermediary 13 Private arrangement intermediary withholding rate pool - general 14 Private arrangement intermediary withholding rate pool - exempt organizations Data disk Mobile will create additional withholding tax codes that are not delivered via the country template such as 3A-Crop Insurance and 3C-Gross proceeds, we will also define new withholding tax codes for calculation, posting and payment of withholding tax on behalf of a 1099 Vendor (unlike the usual practice where it is reported only to the IRS), by using the withholding tax codes like F1, F2, etc. The withholding tax codes for 1099-G reporting excluding WT and 1099-G reporting with including WT also must be defined in the system as per the below table WT Code Description 01 Rents 02 Royalties 03 Prizes and Awards 04 Federal income tax withheld 05 Fishing boat proceeds 06 Medical and health care payments 07 Non employee compensation 08 Substitute payments (dividends/interest)
  • 34. 09 Payer made a direct sale of $5000 or more 10 Crop insurance proceeds The table for the 1099G reporting excluding (G1) and 1099G reporting including WT (GT), is below WT Type WT Code Description G1 (1099G reporting excluding WT) 1G Unemployment compensation of $10 or more 2G State or local income tax refunds, credits or offsets of $10 or more 5G Other taxable grants of $600 and more 6G Taxable grants administered by a federal, state or local program to provide subsidized energy financing 7G Agriculture subsidy payments 8G State or local income tax refunds, credits or offsets on unincorporated businesses GT (1099G reporting including WT) 1G Unemployment compensation of $10 or more, if withholding tax is withheld 2G State or local income tax refunds, credits or offsets of $10 or more, if withholding tax is withheld 5G Other taxable grants of $600 and more, if withholding tax is withheld 6G Taxable grants administered by a federal, state or local program to provide subsidized energy financing, if withholding tax is withheld 7G Agriculture subsidy payments, if withholding tax is withheld 8G State or local income tax refunds, credits or offsets on unincorporated businesses, if withholding tax is withheld Data disk Mobile wants to have G/L accounts (from 181100 to 181900) which are differentiated by withholding tax types but does not need these accounts separated according to the tax code for all the third party transactions, there must be a single account (181000) for self-withholding tax. Data disk Mobile certificate numbering for withholding tax is to be configured for Japan and UK only, (in the US the requirement is fulfilled using TIN, EIN and SSN numbers), so we will configure the withholding certificates numbered for the combination of withholding tax type and company code for easy monitoring and control. Data disk Mobile will use the standard correspondence types that are already available in the standard SAP system General Ledger Accounting Data disk Mobile will use the SAP supplied accounting groups. Data disk Mobile will have only one retained earnings account for each of the company codes, G/L account 900000 is to be designated as the retained earnings accounts (in the chart of accounts area) of the operative chart of accounts. Data disk Mobile will create an sample account that can be used to uniformly create G/L account master records for all banks accounts across all the company codes. We will create data transfer rules with the field status group G032, the exchange rate difference key field will be configured so that the non-blank value in the sample account can be overwritten after transfer to the new G/L account master record. We will have a strict document reversal policy, negative postings should only be allowed in the current period, in all other situations they should be reversed in the normal way, in which an alternative posting date will be allowed, however reversals relating to accruals and asset transactions will be allowed negative postings even with alternative posting dates. Remember that if the company code does not allow negative postings then you will not be able to use negative posting functionality. We will create a specific interest indicator (L1) that will be used by all company codes while calculating the interest on loads provided to the staff of data disk mobile. We can also use the other SAP supplied interest indicators that come defined in the system. The interest calculation frequency will be six months for all staff loans with the frequency captured in the interest indicator and not in the G/L account master records, also the interest settlement will be on the last date of the month. We will use a graduated scale for all staff loans  2% up to 5,000  3% up to 10,000  5% in excess of 10,000 An interest settlement needs to be created when the interest amount calculated is in excess of 10, there will be no interest settlement created if the payment is produced, payment must be made when due, interest postings are to be made to G/L account 273100 (interest income) and 220000 (interest expensive). For all US based company codes, the company code DD11 will act as a central purchasing entity for purchase of common supplies, including computers, stationary and other consumables. The G/L accounts 145099 (account receivable - other companies adjustment account) and 165099 (accounts payable - affiliates adjustment account) are to be used as the clearing accounts for this purpose. We will use the standard document splitting functionality for all company codes with the default characteristics so not to increase the system load. We need to generate additional financial statements using segment and profit center characteristics. It requires that the zero-balance check is to be set for them and ensuring that these mandatory filled with a valid value after document splitting. We will also configure the system to issue an error message if no value is
  • 35. set for the specified field after document splitting. Document splitting should capitalize the cash discount on asset- related payment invoices, instead of posting the discount to a cash discount account. Data disk Mobile wants to have manual accruals for all of its company codes to make it easy and simple to manage the accrual postings, different accrual types need to be defined for periodic and non-periodic accruals costs, revenue and receivables. There also needs to be a separate entry for insurance accruals that will cover both periodic and non- periodic entries. We will also prefer to reverse any accruals and do the corrections by performing the current accruals. We will use a single set of accounts to cover realized exchange rate differences in clearing open items, accordingly we will use the G/L account 230000 for loss and G/L account for gain for the operative chart of accounts (CAUS). The G/L accounts 230100 and 280100 will be used for posting valuation loss and gain, for all balance sheet adjustments the G/L account 161099 will be used. Data disk Mobile will have an additional criteria besides the default contract number of customer) payment reference to separate clearing entries related to vendors, in line with this practice of using the same upper-level reference number of a number of payment transactions. Data disk Mobile will have the following additional criteria for grouping the open items in automatic clearing, this will help with easier administration of open-item management.  Customer and vendor accounts - contract number and cost center  G/L accounts - cost center and segment We will create the following tolerance groups for the G/L accounts  DDGL for selected employees (US based) allowing a tolerance of 10 USD for both debit and credit transactions subject to a maximum of 1%, for company codes DD13 and DD22 the percentage remains at 1% and the absolute amounts will be 15 JPY and 5 GBP  Null tolerance group which will be assigned to most of the employees this will have a maximum tolerance of 1 (in any of the local currencies) subject to a maximum of 1% in all the company codes. We will create two separate accounts (expense and revenue) to post the clearing differences, G/L account 230110 will be for the debit and G/L account 280110 will be for the credit. Data disk Mobile will define a number of planning periods as per below Company Codes From year (period 1) To Year (period 1) From year (period 2) To year (period 2) DD11 - DD22 1/2013 12/2020 13/2013 16/2020 We will create new distribution key as company code DD13 as sales have been experiencing large seasonal fluctuations with most of the sales in November (15%), December (20%) and January (20%), so a distribution key will be created for planning in G/L accounting. For all other company codes we will use the SAP supplied distribution keys. Data disk mobile will define adjustment and target accounts for GR/IR clearing Reconciliation Account Adjustment Account Target Account 191000 191101 191199 191100 191101 191199 Accounts Payable Data disk Mobile will use the standard accounts groups, we will also want the payee to be included for dual control as this will cover all the payment recipients with the "alternate payee" already there in the list of sensitive fields, a number of accounting clerks will also be defined. The following payment terms will be created for the vendors DDV0 immediate payment DDV1 1% discount if paid within 15 days, net 45 days DDV2 2% discount if paid within 15 days, 1% within 30 days, net 60 days DDV3 3% discount if paid within 30 days, 1% within 60 days, net 90 days Workflow variants will be created for each of the currencies (USD, JPY, GBP), each variant will have a upper limit of 50,000 in each currency beyond which both the posting and payment release will be mandatory. The creator will not be allowed to release for payment, to enforce dual control. Three types of release approval groups will be created to coincide with the three risk categories: Low, Medium and High. Also three release level paths will also be defined so that different amount limits can be later assigned for payment release for each of the release path-approval group combinations. Multi-level payment release will be used for all company codes
  • 36. Release level Amount Single Release 50,000 to 100,000 Two Level Release 100,000 to 200,000 Three Level Release in excess of 200,000 The SAP standard posting keys will be used, the system will propose the block reason "B - blocked for payment" when the payment term is proposed for the vendor. Two tolerance groups will be defined Tolerance Group Description null (default) $100 for gain and $10 for loss but the amount not exceeding 2% for gain and 0.5% for loss, a maximum of 5 USD can be adjusted in the cash discount. the payment differences for automatic write-off, the amount and percentages will be $5 and 0.5% for both expense and revenue. DD11 - DD22 $500 for gain and loss but the amount not exceeding 2%, a maximum of 420 USD can be adjusted in the cash discount. the payment differences for automatic write-off, the amount and percentages will be $5 and 0.5% for both expense and revenue. Company codes DD11, DD13 and DD22 will make all payment independently, payments will be performed 5 days after they have become due, payments will also be not be grouped by business area as it will take away the normal and more comprehensive payment grouping by currency, payment method, bank, etc, we will require covering down payments, down-payments requests, security deposits and re-discountable bills of exchange in automatic payments for vendors. Down payments, guarantees, security deposits, letters of credit and payment requests for customers are also included. We will want to avoid large number of small payments and we don't want to make automatic payments including debit memos if the amount is less than $5 (DD11, DD12 and DD21), JPY 10 (DD13) and GBP 5 (DD22). The payments will be accumulated to be processed later when the amount exceeds this amount thresholds. All line items that fall on the same due date will be grouped into a single payment, payments will be done using check or bank transfer, the minimum limits for cheques and the limits of a domestic payment whether it should be paid via a bank transfer is also below Payment Method US ($) Japan (Y) UK (£) Check 15 50 10 Bank Transfer > 25,000 > 50,000 > 10,000 All oversea payments should be via wire transfers and international bank transfers and there should be no minimum or maximum payments, the payments should be made using the business partners banks in their own countries. Payments can be made with in other currencies other than the company code currency. We will split the payment by grouping invoices with the appropriate credit memos for payments exceeding $10,000 for all US based companies. We don't need this for company codes DD13 and DD22. We will also optimize the payments using the optimal pair of banks so as to speed up the payment transactions, especially the cross-border ones. Create any vendors that you wish. Accounts Receivable Data disk Mobile will use the standard account groups, we will also use sensitive fields that are in the system, terms of payment, dunning procedure and tolerance group to be included for dual control, this will ensure that no one will unnecessarily or accidentally change the original data. We will use account group 0099 to create the one-time master records, two records will be used one for domestic one- time customers and one for international one-time customers and as such there will be two G/L reconciliation accounts defined in the system. The following payment terms will be created for the customers DDC0 immediate payment DDC1 1% discount if paid within 15 days, net 45 days DDC2 2% discount if paid within 15 days, 1% within 30 days, net 60 days DDC3 3% discount if paid within 30 days, 1% within 60 days, net 90 days We already define the tolerance groups in the accounts payable section. Tolerance Group Description null (default) $100 for gain and $10 for loss but the amount not exceeding 2% for gain and 0.5% for loss, a maximum of 5 USD can be adjusted in the cash discount. the payment differences for automatic write-off, the amount and percentages will be $5 and 0.5% for both expense and revenue.
  • 37. DD11 $500 for gain and loss but the amount not exceeding 2%, a maximum of 420 USD can be adjusted in the cash discount. the payment differences for automatic write-off, the amount and percentages will be $5 and 0.5% for both expense and revenue. Payment cards will use the standard ones in the system but you can setup any others that you wish Data disk will create the appropriate settings needed for the credit management with regards to reading and creating the A/R summary during a credit check, the current balance together with a 3 month previous period will arrive at the DSO figures. Each of the credit control areas the different credit management groups considering whether a customer is domestic or foreign, institutional or regular and large or others, all possible combinations will need to be defined. Three credit risk categories will be defined low, medium and high in each credit control area. Five credit representative groups will defined premium customer (general and institutional), main dealer, new customers (general and institutional), and others (general and institutional). We will define five day limits (15, 30, 45, 60 and 90 days) in the order to have the intervals 0 -15 days, 16 -30 days, etc. Two interest indicators will be defined, one will calculate on all open and cleared items but not on the items paid before the due date (indicator 01), the other that will calculate interest on open and cleared items but will consider items paid before the due date (indicator 04). The bank calendar will be used for interest determination and interest settlement for amounts above $10. A grace period of one day will be allowed for incoming bank payments. Five dunning keys will be configured with the fifth denoting the residual items from payment difference using a separate display, the maximum level will be defined that will be triggered for each key Dunning Key Max Level Description 1 1 Dunning Level 1 2 2 Dunning Level 2 3 3 Dunning Level 3 4 4 Dunning Level 4 5 Res item out of pmt diff separate display, this will also print separate line items separately Dunning block keys will also be defined but can add any more if yo wish Block Description Freed for Dunning B Manual block other reasons D in dispute R blocked by invoice verification A number of dunning forms will need to be define we will copy the SAPScript forms (F150_DUNN_01) delivered by SAP, the last three characters will identify the country and the dunning level  ZF150DUNN_ML_US1, _UK1, _JP1  ZF150DUNN_ML_US2, _UK2, _JP2  ZF150DUNN_ML_US3, _UK3, _JP3  ZF150DUNN_ML_US4, _UK4, _JP4 Two procedures will be defined for each of the countries, one will be the payment reminder single-level dunning, the other a multi-level dunning procedure to be used for all others. The multi-level dunning procedure will have a maximum of four dunning levels, with the dunning level of 15 days in between. A grace period of 5 days will be configured at the account level. A cushion of five days will be configured for each dunning level 2, 3 and 4 to arrive at the payment deadline. Public holidays will be respected in each country so that the dunning notice will print the next working if the due date falls on a working day. The whole account balance should be printed even if the notice is on the lowest dunning level this will include all the open items. No special G/L items are to be included in the dunning scope. Charges will be applied from dunning level 2 and upwards, with an absolute dunning charges of 10 from amounts 1,000 to 24,999, 15 for amounts from 25,000 at level 2 and a graduated charging for levels 3 and levels 4 as seen in the below table, the minimum dunning charges for levels 3 and 4 will be 25 and 50. You will also need to configure the sender details for the dunning forms. Amount Range Level 3 Dunning charges (%) Level 4 Dunning charges (%) 1000 - 24999 0.10 0.20 25000 - 49999 0.15 0.25 50000 - 99999 0.20 0.30 above 100000 0.25 0.40 Five dunning procedures will be created, two for each country Dunning Procedure Description DD1U, DD1J, DD1K single-level dunning procedures for each country, U = US, J = Japan and K = UK
  • 38. DD4U, DD4J, DD4K multi-level dunning procedures for each country, U = US, J = Japan and K = UK The dunning will be done at the company code level and not at the dunning area level. Create any customers that you wish. Declaration: This is related to my Practice in Demo System ERP6 EHP5 since after my SAP Certification. I have taken guidance from SAP Expert of UK who had given me full instructions on how to go about with certain configurations in Financials. I have successfully completed one Configuration Cycle.