SAP Financials User Guide in Detail

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This document relates to SAP Financials User Guide - GL, AR, AP, BA, AA, and Closing Operations. This document is no where related to Real Time Project. I have prepared this by keeping my SAP IDES …

This document relates to SAP Financials User Guide - GL, AR, AP, BA, AA, and Closing Operations. This document is no where related to Real Time Project. I have prepared this by keeping my SAP IDES ERP6 EHP5 system.

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  • 1. SAP FINANCIALS USER GUIDE GL, AR/AP, BA, AA, CLOSING OPERATIONS SAP IDES DEMO SOLUTION – ERP6 EHP5 Pramila Nagaraj MBA FIN 2010 VTU SAP Certified Candidate @ Source One Management Services Pvt. Ltd Bangalore 2014 Copy Rights © SourceOne Management Services Pvt. Ltd Bangalore
  • 2. SAP Finance - User's Guide I have covered how to setup and configure FI in SAP, in this section I show you how to use the FI components, I will be covering GL accounting, accounts payable and receivable, asset accounting, bank accounting and closing operations. I will also show you some of the error messages that may appear where the configuration has not been setup correctly or missing, this section will heavily link back to the FI configuration and setup section. General Ledger Accounting Introduction Master Data Documents Document Entry New General Ledger Evaluations in G/L accounting Accounts Payable Introduction Master Data Integrated Business Transaction Entering Incoming Invoices Automated Payment Transactions Manual Payment Run Evaluations in Accounts Payable Accounts Receivable Introduction Master Data Integrated Business Transaction Monitoring Credit Limits Dispute Management Dunning Evaluations in Account Receivable Asset Accounting Introduction FI-AA Component Master Data Asset Transactions Depreciation Asset Retirement Asset Transfer Evaluations New G/L and Asset Accounting Bank Accounting Introduction Master Data SEPA Payment Transaction Processing Bank Statements Cash Journal Check Deposit Transaction Evaluations Closing Operations
  • 3. G/L Accounting (User's Guide) We have already discuss G/L accounting configuration in the FI configuration and setup section, hopefully in this section we will use what we have configured as this will help you understand the configuration from a users point of view, some of the topics I would have already discussed. I will also be touching on documents, posting keys and how the relationship of these come together when performing a document entry, if you need to refresh your memory then have a look at the FI configuration and setup document section, you should end up with a full picture from the entry and the behind the scenes configuration, which will help you when trying to diagnose problems. Accounting relevant data of a company is entered, controlled, shared and documented, a distinction is made between external accounting area (FI component) and an internal accounting area (CO component (controlling)), the FI component includes the general ledger (G/L) and administrative accounting with statutory sub-ledgers and the CO component covers cost and activity accounting, both areas are often enhanced by statistics and planning areas. Accounting provides the cost and activity accounting with the relevant expense and revenues postings, cost and activity accountings adds costing based valuation approaches and clearings which are also to be posted on the G/L account of a shared chart of accounts, this allows controlling to be coordinated with all individual transactions and G/L accounting in the SAP system. Statistics provide operational evaluations using comparison calculations contrasted with earlier periods or companies from the same industry. The statistics are used as a source for planning the activities of a company to obtain a basis for future decision making. The following tools ensure integration between accounting and cost accounting  Common chart of accounts  Consistent document principles with single posting based on the real-time principle  Parallel account assignment features for general and sub ledger's and cost and activity accounting  Reconciliation's regarding periodic and translation-related documents and totals  Mutual clearing flow from general ledger accounting and sub ledger accounting into the systems for cost and activity accounting  General ledger accounting (G/L accounting, expenses) and overhead cost management  Asset accounting and project controlling (investment management)  Inventory accounting and product cost by order or period  Profitability analysis with all accounting system An import fact to remember is that the general ledger is regarded as complete verification of all business transactions, it represents the main current element of financial reporting, you can access individual transactions at any-time in real time using documents, line items and transaction figures at various levels, such as  Accounting data  Journalizing  Totals and transaction figures  Balance sheet and profit and loss statements (P&L) The balance sheet is a key element of accounting and gives brief summary of the assets and liabilities of a company, the balance sheet provides information about the size, type and composition of the assets of a company measured in money at a specific time and establishes how much borrowed capital and company capital has been used to finance the assets. The main evaluation groups of a SAP system from the perspective of financial accounting is the client (generally the corporate level), the chart of accounts and the company code (normally the level of the individual company). I have already discussed these in my SAP introduction section; however here is a quick review Client This is the highest hierarchy level in the SAP system, each client is a self-contained unit with separate master records and a complete set of tables, all entries are saved separately according to client to ensure that processing rules are consistently observed, you can only process and evaluate data within one client. Therefore you cannot evaluate customers of different clients in a dunning run. A user's master data must be defined in each client to allow access to a client’s data. See client in my basis introduction section for more details Chart of Accounts is a systematically structured directory of all G/L account master records required in one or more company codes, the chart of accounts contains the account number, account name and control information for each G/L account master record, you can use any number of chart of accounts within a client. You may need to do this if company codes belong to different industries or nationalities; the chart of accounts used within a client form the chart of accounts list. For more information regarding configuration and setup see chart of accounts in my Financial Global Settings and Company Code Parameters section. Company Code is the smallest organizational unit for which a complete self-contained set of accounts can be drawn up, this includes recording all relevant transactions and generating all supporting documents required for a statutory consolidated financial statement (balance sheet and P&L statement) and reporting, it is therefore an independent accounting unit, any number of company codes can be setup in a client, a company code must be assigned to one and only one operating chart of accounts but can be used by several company codes. See company codes in my enterprise section for more details Business Area Is not subject to any legal requirements, but describes a separate area of operation or responsibility in the company, they are only suitable for internal purposes, evaluating and analyzing internal data. You can evaluate all transaction figures and results (balance sheet and P&L statement) for each business area, business areas can represent any results level (divisions, plants, sales organizations, etc) in a structured way according to business relevant contents. See business area's in my enterprise section for more details
  • 4. Profit Center Are management-oriented divisions of the company and are used for internal control of sales and acquisition of activities from other departments. Profit centers also determine specific key figures such as return of investment, cash flow, working capital. Cost and revenue bearing objects in the system (internal order, sales order, profitability segment, asset, cost center) are assigned to exactly one profit center each. When entering documents you can use additional account assignments to map each relevant business transaction to the related profit center, if an account assignment is not assigned the costs and revenues within profit center accounting are assigned to the dummy profit center and must be available as a master record like every real profit center. See profit centers in my enterprise section for more details Controlling Is an area within a company for which complete, self-contained cost accounting can be performed. Controlling is viewed as a management function with the task of supplying information to the decision makers in the company, controlling is normally structured according to the areas of responsibility  Planning and control of costs  Planning and control of equity holdings adjustments  Determining costs Internal accounting does not have any external regulations, data is transferred in real-time from financial accounting, each controlling area must be assigned to at least one company code, the following applies  company codes and the controlling area must use the same operating chart of accounts  if the company codes work with different currencies, the company code objects use the company code currency as the object currency The company is divided into individual areas of responsibility within the controlling area these are  Cost Center  Adhering to a cost budget (cost controlling)  Profit Center  Business success  Investment center  Investment framework (profit center with assets) SAP general ledger is rarely viewed in isolation, value flows begin in other SAP component such as MM (Materials Management), SD (Sales and Distribution) and PP (Production Planning), each is outlined briefly below Goods Receipt/Invoice Receipt (MM) In the purchasing process you normally receive the requested goods first and this leads to an increase in material stock. An automatic entry to a reconciliation account is executed accordingly on the material stock account in the general ledger (account determination in material master). The entry is offset on the goods receipt/invoice receipt account (GR/IR) that is cleared again by posting the liability on the vendor account when the invoice is received. Goods Issue/Outgoing Invoices (SD) The goods issue and outgoing invoices sales process runs in a similar way in accounts receivable, again the general ledger only receives values from connected components Asset Acquisition from Asset Accounting (FI-AA) When a vendor acquires an asset the system creates a posting with some automatically derived posting items. The balance sheet account (class 0) determined using the account determination key in the master record of the asset increases its value by the amount invoiced by the vendor. The entry is offset on the vendor account and in parallel on the reconciliation account (liabilities) stored in the vendor master record. Settling a Production Order from Production Planning (PP) A production order settlement is structured according to certain logic in the SAP system. The costs accumulated on the production order are grouped according to a stored system and settled using a defined rule. The production order is credited using the primary "Plant activity" cost element and the settlement correspondingly increases the "Finished products" stock. Values flows in Controlling (CO) The material withdrawal through cost center and depreciations from asset accounting examples below explain in more detail the values flows that flow from general ledger accounting into other components.  Material withdrawal through cost center - when a material withdrawal is entered into the system it clears the amounts and values between different objects. A price that is used to evaluate a goods movement (normally the standard price) is stored in the material master record, a material number and quantity is specified when a material withdrawal is entered, the value of the goods movement is calculated as a product from the quantity with the stored price of the material. The value of the material stock is now reduced accordingly in the SAP system and an automatic entry to a reconciliation account is executed on the material stock account. The entry is offset on a primary cost element (G/L account in FI) that requires a mandatory additional account assignment on a CO object.  Depreciation from asset accounting - when depreciations are posted from asset accounting values are also transferred from financial accounting to controlling. looking at two examples the commercial valuation approach and the costing-based valuation approach. The indirect method involves posting the commercial depreciation on the accumulated depreciation account (balance sheet account) not on the balance sheet account and thereby reducing the value of the asset. The entry is offset on a neutral expense account (P&L account). This ensures that the asset balance sheet value is reduced and the corresponding amount is included in the P&L statement. You post the costing-based depreciation on a primary cost element. This leads to the relevant amount being transferred to cost accounting by an additional account assignment (CO object). The entry offset on an accumulated depreciations P&L account, because the two accounts in question are profit and loss accounts the costing-based depreciation remains cost-neutral. Master Data G/L accounts uses balance sheets and P&L statements, you manage receipts and issues for a stock on balance sheet accounts and you close them at the end of the fiscal year using the financial statement. The balance on a balance sheet account is carried forward to the new fiscal year, in contrast you enter expenses and revenues for a company on P&L accounts, you close them using P&L statement and they have a zero balance at the start of each fiscal year.
  • 5. The collection of all G/L accounts used by a company is called a general ledger, the below diagram gives you some examples of G/L accounts Postings are sorted in chronological sequence within the account. You create the balance sheet and the P&L statement from the general ledger. Subledger's describe a general ledger account (known as the reconciliation account). When you create a G/L account you must first specify an account group which is why you need at least one account group. Accounts that require the same master record fields and number range are created with the same account group. An account group is a group of properties that controls the management of master records. The account group controls the screen layout when you enter master data and it defines the number ranges for the account name. G/L account master data is split into two parts (see below diagram), one for specifically for the chart of accounts (related to cross-company code data) and the other for the company codes, for example the G/L account number is assigned once at the chart of accounts level, for the company code data you define how you enter documents (field control group) and manage accounting data (manage open items, display line items) or control currency you can use to post the account (account currency). I will be covering all fields in the master data but will only discuss them in the relevant section, so don't worry if I skip a few options they will be discussed. To create or maintain a G/L account at the chart of accounts level you can use transaction code FSP0, enter an existing account to see details of that account or create a new account, you can also copy an account from another chart of accounts (known as create from template).  Account group - This field controls the screen layout of the area specifically for company codes when you create or change the master record and assignment of account numbers. You can define and hide fields or make them optional, the account group applies in all company codes that use this chart of accounts.  P&L statement acct - You must specify the account to which the balance is carried forward for the new fiscal year, remember the P&L accounts will be reset to zero at the end of the fiscal year.  Balance sheet acct - The balance on the balance sheet is carried forward to the new fiscal year  Account group number - you can link up to three chart of accounts with each other in the SAP system, for example the funds are consolidated in consolidation item (group account) 125300.  Trading Partner - if applicable, you enter this for consolidation-related activities
  • 6. The key word/transaction tab allows you to use multiple languages for keywords, the information tab provides details about the history of the master data record. You can create the G/L account in both the chart of account and company code level in one go using transaction FSS0,  Account currency - if the currency key is the same as the local currency (company code currency) for a balance sheet account , a posting can be made into any currency at the document level, if you choose another currency both the local currency and the foreign currency are maintained.  Only balances in local currency - allows you to keep transaction figures in the local currency only for this account, you would normally select this for clearing accounts to clear line items in various currencies with one local currency amount and without posting any exchange rate differences that may occur. You usually select this for the balance sheet accounts without open item management, in which no foreign currencies are managed.  Tax category - in tax account you can specify the taxes (input or output) on sales and purchases that can be posted to this account, options are - only input taxes, + only output taxes and * both input and output taxes are allowed, or you can specify a tax code for example V1 or V2.  Posting Without tax Allowed - this allows you to post with no tax code.  Recon. account for acct type - at least one reconciliation account must exist in the G/L accounts area for each sub ledger (customers, vendors, assets), an entry in this field denotes that the G/L account is a reconciliation account, you cannot directly post into a reconciliation account. When posting a customer or vendor transaction the system automatically posts to the corresponding reconciliation account in additional to the subledger.  Open item management - you can clear items for an account if you can assign an identical offsetting amount to the account, you also need to display the line items, this is generally used for bank clearing accounts, clearing accounts for goods receipt and invoice receipt and salary clearing accounts.  Line item display - displays the document items for the account and thus you can go to the individual document items. You don't generally display the line items for reconciliation accounts as the details are contained in the sub-ledger, sales revenue accounts (details in SD), material accounts (details in MM) and tax accounts (detail is not needed because tax data is contained and checked in the document).  Sort key - is used to display the line items  Exchange rate difference key - used for accounts that are managed in foreign currencies, it helps in account determination of the gains and losses when converting to the local currency  Valuation Group - you can map the exchange rate gains and losses differently  Alternative Account No - you can use this to map the operating chart of accounts to the country-specific chart of accounts, if you enter a value here you can check the alternative account indicator in various reports, which allow you to generate balances sheet as per the alternative chart of accounts.  Acct Managed in Ext System - this indicates whether the account is being maintained in an external system via application link enabling (ALE)  Inflation key - used only when a general ledger account is managed for inflation, you can make the actual adjustments in the appropriate subledger  Tolerance Group - you use these groups to define how you treat the differences resulting from open item clearing.
  • 7.  Authorization Group - this allows you to limit the personnel who can make changes to the general ledger account  Account Clerk - you can use this field to assign the responsibility of the reconciliation of the account Before I move on I want to discuss the line item display option, if you forgot to enable this and now want to change it this indicator which will only apply to future documents, not prior documents. If you want to clear prior documents there are a few steps you need to take to activate open item management for both prior and future documents in the general ledger account  Enable in the General Ledger account master data (see above screenshot)  Block the account for posting while you make the changes (use transaction code FS05, select g/l account -> block)  Run transaction code FAGL_ACTIVATE_IT and enter the general account and company code, this process may take some time.  Use transaction code FAGLL03, to confirm line items have been generated, check against balance using transaction code FAGLB03. Generally to turn on the line item the G/L balance should be zero, to correct any problems use transaction code FAGL_ACTIVATE_OP, enter the general ledger and company code details and the effective date, enter if the account is not balanced you will be asked to enter a document type and account for transfer posting to make the G/L account balanced to zero, select the perform reposting checkbox so that the posting that is made to bring the balance of the account to zero is reversed after the open item has been turned on, which will bring the account back to its original balance. The next screen details control, bank and interest information  field status group - along with the field status group in the relevant posting key jointly controls the screen layout that determines if a field is optional, required or hidden  interest indicator - can be used to calculate interest on a G/L account automatically  interest calc. frequency - the interval (in months) in which the balance interest (automatic process) will be calculated on the account.  key date of last int. calc./Date of last interest run - a date is stored regarding the interest calculation run date.
  • 8. The last tab is the information data, most of this screen contains historical information. You can use the edit financial statement version button to define where you want the G/L account to be shown in the financial statement (you can choose which financial statement that you want), an G/L account can be stored in one or more financial statements, in the below example looking at the CAUS financial statement we can see that the G/L account is in the assets section and as its in the asset side not the liabilities side you know that this account is in debit and not credit. You can change all the fields except for the account number however you need to take in account the following  You can only change the currency key and tax category for the accounts that have not been posted too.  You can only define an account as a reconciliation account if it has a zero balance  You can only set or undo the open item management indicator if the account has a zero balance
  • 9.  You can perform mass data changes (because as it can cause you lots of trouble), you can use transaction code OB_GLACC12 I have already discussed G/L account creating for more details see G/L Account Creation and Processing, you can also block an account either at the chart of accounts or company code level,  at the chart of accounts - blocks the master record for creation in the company code and an account for posting and planning  at the company code - you only block the account for posting. You can archive G/L accounts that you no longer need, the master record data is extracted from the database, deleted and put into a special file, however the account must be blocked from posting, the account must be selected for deletion, the system will check that the account has not been posted too in the past and current periods and no transactions exist for these periods. For more information on G/L accounts regarding the configuration and setting up see my other G/L accounting section. Cost Accounting Cost accounting is directly tied to the operating chart of accounts as such the chart of accounts assignment depends on how the cost accounting is organized. When assigning an operating chart of accounts to a company code you have the option to either assigning the country-specific chart of accounts or your group chart of accounts, this is depends on how your company operates, in other words whether the cost accounting department is centralized, decentralized or regionalized, a summary table is below Organization of Charts of Accounts Cost Accounting Operating Chart of accounts Group chart of accounts Country-specific chart of accounts Centralized Cross-company code Group chart of accounts Not Require For local requirements Regionalized Decentralized by regions such as Europe, APC, Americas Region-specific chart of accounts For corporate group requirements For local requirements Decentralized At the company code level Country-specific chart of accounts For corporate group requirements Not required The next table shows the pros and cons of the centralized and decentralized approaches of chart of accounts organization, there are many ways for you to configure how cost accounting relates to your general ledger chart of accounts. Approach Pros Cons Centralized  Cross-company cost accounting is possible  Consolidation is carried out using the operating chart of accounts, which is the corporate group chart of accounts  The accountants cannot work with their own country-specific charts of accounts Decentralized  The accountants can work in their own country- specific chart of accounts  You cannot consolidate data using the corporate group chart of accounts  Cross-company code cost accounting is not possible Documents Each business transaction is stored in the system as a transaction-related posting document, the document is self- contained and has its own unique document number, checks are made before a document can be posted thus ensuring that the document data is correct. SAP uses the document principle which ensure that all integrated systems with their posting relevant transactions or line items are linked to one another at the transaction level and in an audit-proof way for every business transaction created in the system.  Each business transaction is entered and documented in a single posting document
  • 10.  Posting is only possible for zero balances (with the exception of statistical documents such as down payment requests)  Each document contains a unique document number to the relevant company code  Document numbers can be assigned internally or externally depending on the business transaction Each document has a document header and 2 to a maximum of 999 document items or posting items. The document header contains information regarding the document as a whole such as document date and number, the document items will minimally contain a posting key, account number and amount. Depending of the type of transaction other data may be contained in the document for example a G/L account line will contain different data from a customer or a vendor line. Lets discuss the document lifecycle, although not needed from a users perspective it’s good to understand a few advanced topics that can help with problems, as mentioned before you can only post a complete document in which the debit balances equals the credit balances, they will also include basic account assignment data, such as document date, posting date, document type, posting key, account numbers and amounts. In order for the document to be completed in the system it goes through various steps that constitute the document lifecycle, there are three stages  Data entry to posting - during this stage the document can be held, parked, released, simulated or ultimately posted  Posting to change - once the document has been posted there is very little that you can do with it, in this stage you can perform the splitting, display the document or make minor changes  Posting to Archiving - in this stage you can clear a document or reserve a document or you can archive the document Lets discuss in more detail the above three stages to get a full understand of a document, the below diagram show the various states a document can be in before it is posted (data entry to posting) Holding this is like temporarily saving the document before all the data has been entered, perhaps you need to obtain more information before the document is posted, to hold the document it does not need to be complete, account balances are not updated and the document data it not available for evaluation. During the holding of a document, a document number is not assigned, a held document can be either completed or deleted Parking is when you enter and store incomplete documents in the system and it allows you to bypass the extensive entry checks. This is similar to holding but with a difference, parking a document creates a document number in the system. When documents are parked the system does not update any data, such as transaction figures, except cash management. However data from parked documents can be used for current evaluations, you can perform the following evaluations  Output of parked documents in the document journal  Valuation and where appropriate posting of payables from parked documents as a total Document parking is linked to the account display function and the reporting function, the following are some uses of parked documents  Amounts from parked invoices can be used for the advanced return for tax on sales and purchases  Payment requests can be used to pay parked invoices on time and without any loss of cash discount Parked documents will also be mentioned in the closing operations section. Simulation allows you to see accounting entries before you actually post them, if offers an overview of the line items which allows you check them before posting, during simulation the document goes through all of the checks required for posting. You can simulate the document in both the entry view and the general ledger view in which you will see the simulation for specific ledgers. I show you how to perform both types of later in this section and in the accounts payable and accounts receivable sections. Release is when you setup rules to release a document for approval via workflow, the below diagram show the workflow that can be triggered depending on the assigned release authorization. Once the document is created and parked which triggers the workflow event there are two possible outcomes  you can have it authorized by a person with release authorization  you can have the accounting clerk complete the document before routing to the appropriate person for release authorization and posting.
  • 11. Posting Once the document has passed all the checks the system can post it, this generates a real accounting document in the system and updates the transactions and accounting figures in the system, which then can be accessed in various reports. You can either post an general ledger account document or you can process a recurring entry original document. Now let’s discuss posting to change, this shows the states of a document after it has been posted or is in the process of being posted Splitting document splitting is concept that was introduced in SAP general ledger from ECC 5.0, it displays documents where line items are split according to selected dimensions allowing you to have financial statements for the selected dimensions. See my document splitting section for more details on how to configure Display Once a document has been posted you can display it in the general ledger view or in the entry view Change After a document has been posted you can only change those fields that have been configured as changeable, these are generally referred to as soft fields and they include text and allocation. Lastly we come to posting to archiving which shows the transactions that create further accounting documents with reference to the original document, the system maintains the linkage between the original documents posted and the new document that is created. Clearing allows you to keep track of open items that have been posted for a particular account, another document is used to clear the open item, for example a vendor payment clears a vendors invoice. Clearing can be performed automatically or manually Reversal allows you to retract a document if it has been posted in error, when this is done the open items corresponding to the document are cleared and the general ledger automatically assigns a number for the reversal document. The reversal is general posted in the same period as the corresponding original document, however if the posting period is closed then the current open period should be entered. You can only reversal a document if the following conditions are met  The document has not cleared, if the document has been cleared you have to reset the cleared items before it can be reversed  The document contains only vendor, customer and general ledger account line items.  The document was posted in financial accounting, otherwise you must reverse it from the original component  All entered values - cost center, tax code, etc are still valid You can either individually reverse a document or perform a mass reversal Negative Posting When you reverse a document you can mark it as negative posting, which reduces the debit and credit balances, this allows you to return to a stage where the initial document balance which was reversed was never posted in the first place Archiving allows you to delete documents from the system, archiving object FL_DOCUMENT is available for archiving posted documents. I mentioned above that a number of checks have to be performed before document is posted, let’s take a look at those checks in detail, the checks are called consistency checks Balance Verification The debits and credits must be equal for a document to posted Formal Checks The system checks that all required fields have entries and whether the entries have been filled in the required format. Some of the fields might have already provided by the system, including the fields for the document type and posting keys. Field-Specific Checks The system checks whether entries for each specific field are correct, this applies to the document header, individual line items and any predetermined control logic, for example  you can only enter document types that are already available in the system  you can only use document numbers contained in the specified number interval that have not yet been assigned for the external document number range  you must specify for which account types each document type is permitted, as a result you can only use posting keys that belong to one permitted account types. Authorizations The system will check authorizations and tolerances, for example a employee might only be authorized to post to certain accounts within one company code, also tolerances will be checked which includes maximum cash discounts, maximum amount per vendor or customer line item and a maximum amount per document. If any of the above checks fail the document cannot be saved or posted, however the system will prompt you with any errors and then allows you to correct them, the checks prevent input errors and inconsistent or incomplete entries.
  • 12. Lastly before we start entering documents I just want to cover special documents, these allow you to simplify document entry by predefining the template in which you will enter the information in the system, they are sample documents and recurring documents. Sample documents allow you to start creating a document by using them as a reference. They have a special number range and serve as a data source to post the final accounting document, the system does not update any transaction figures using the sample document. You can transfer the data from the sample documents without any changes, use them for reversal postings, change data, omit some components of data and enhance the document as you go through the posting process. Recurring documents allow you to post a transaction in the system using a recurring entry program when the posting keys, accounts and amounts do not change from one entry to another. For example you can use this for when you are collecting rent, it allows you to create a recurring document for the rent you can post month by month. You can create a recurring document using the customer-specific template for creating an accounting entry on a regular basis, you can then run the recurring entry program at the frequency needed. Here are some use transaction codes regarding sample and recurring documents Description Transaction Code Change sample document FBM2 Display sample document FBM3 Display changes in sample document FBM4 Delete sample document F.57 Change recurring document FBD2 Display recurring document FBD3 Display changes in recurring document FBD4 Delete recurring document F.56 Let’s start by having look at some existing documents, you can use transaction code FB03 to display all the documents as per the screenshot on the left, by double-click on the document you can see some of the document information and the document line items. You can see the document header in detail by selecting the display document header (top hat icon), remember the document here applies to the whole document not just specific line items, I have a detailed section on the document header in my FI configuration and setup section. Each document contains a document type, in the above example the type was KR (vendor invoice), the type classifies the document. The document type has the following functions
  • 13.  Differentiates business transactions  Provides information about the type of posted business transaction and is therefore used for documentation purposes  Specifies the type of accounts which the document can be posted too  Restricts the posting keys that you can use (controlling factor for document items)  Assigns document numbers and controls document storage. Let’s have a look at the document type KR, we will use transaction code OBA7, as you can see on the left hand screenshot there are many document types, asset posting, vendor invoice, customer invoice, if you notice some document types appear to have the same name however they may have slightly different configurations, you can see the KR (vendor invoice) document type configuration screen in the right hand screenshot, I have covered document types in details in my FI configuration and setup section. You can also see number ranges in detail in my FI configuration and setup section. Document items only contain information about the relevant posting item, this always includes the posting key, amount and account number but you can add information such as cost centers, profit centers, business areas, etc. If you double-click on a line item you can obtain more details such as posting key (look at the line item 2 line), amount, cost center, asset number, value date (see below screenshot) A document cannot be posted without entering a posting key, the posting key controls the entry as well as the processing of a line item in a document, it determines the type of account that can be posted with that key whether the amount should be posted to the debit or the credit side of the account, what fields will be displayed on the document entry screen and the field status of these fields (see FSG and FSV). You can see posting keys in my FI configuration and setup section for more details. I also want to mention the assignment field which is a free text field that you can use to sort items of an account in a line item display, it is lap used as a clearing criterion for automatic clearing, the assignment field (technical name ZUONR) is a key table field in tables were open or cleared items are read ( for example BSID and BSAD tables). It can be populated manually by entering up to 18 characters in the field or by using a sort key, which pulls the value of the predefined accounting field into the assignment field. To create sort keys to can use transaction code OB16, the left- hand screenshot show some of the standard SAP supplied sort keys, the right-hand screenshot display the sort key 000 which sorts on the field ZUONR the assignment field. Remember the sort key is used in accounts for example in the G/L account in the control data section.
  • 14. Lastly I want to mention the special G/L indicator which informs the system that a certain special G/L transaction is to be posted, there are a number of special G/L indicators that are delivered with the system (you can also create your own), you can use transaction code FBKP to view these, basically you instruct the transaction to go to a different account normally either a reconciliation account or a special G/L account, you can also define the planning level. I will cover the special G/L transaction when we start posting into SAP. Document Entry The document type defines the document number and allows the document to be posted to specific account types, the posting key determines if the item is a debit or credit and defines the appearance of the screen using field status groups. When you first enter a document you supply the header information and at the bottom you specify the posting key and account (plus any other options) which then creates the screen layout based on the posting key (field status groups), then next screen you perform the same, basically what I am saying is that the posting key defines the next screen layout. There are a number of ways to enter a G/L document  F-02 - General Posting  FB50 - G/L document entry (preferred to F-02)  Fast Entry Posting (inside FB50)  Use the SAP easy menu (see below screenshot) As a side point the system may enter some default values, the system will automatically provide these default values from various sources  the system - the system will automatically provide the current date as the document date, in certain functions the system using manual entries also provide a special general ledger indicator a transaction type for clearing and the account type.
  • 15.  account master record - the system pulls some fields from the master record of the account, for example if you have entered terms of payment in a vendor master record, the system provides these terms when you enter a document.  default value for accounting function - using customizing you can define various settings (posting key, document type, etc) as default values for each of the accounting functions  use master record and parameter memory - the parameter memory is a user-oriented memory in which the system saves data entered at one sitting when you log on to the system, this memory is filled immediately from the user master record. The data in the parameter memory is deleted when you log off. Another side point is that you seemed to be entering the same data you can use the holding and setting this data allows you to configure the system to provide it as default data, you access this from system -> user profile  holding data - the next time you call up this screen with the same function, the system will automatically hold the data from the screen  setting data - the next time you call up this screen with the same function, the system will automatically enter the data in the appropriate fields  resetting data - clear the held data for this screen Let’s have a look at all three methods, we will start by using transaction code F-02, the first screen is the initial screen which contains the document header information, at the bottom of the screen you can see the first item line, remember the posting key here will determine the next screen layout, the second screenshot is in two parts the top part being the data for the first line item and the bottom part details the second line item (again the posting key will determine the next screen layout). The third screenshot is the details for the second line item, you can then continue to add line items. Before you post you can check the document by simulating a posting, here I got an error regarding the tax code which I had to change to I0 (original U0), just double-click on the line that is giving an error and correct the problem and then rerun the simulation again. Once the document has been checked you can run a simulation in the General Ledger which basically displays it as if it was posted, you might notice that profit center and segment have automatically been filled, I will discuss this in a later section.
  • 16. When you are happy you can post the document (disk icon), you will receive the below confirmation that the document has been posted, it also details the document number Let’s use transaction code FB03 to view the posted document, as you can see it is the same as when we viewed in the simulated General Ledger. Now if we take a look at the petty cash account we can see one half of the double-entry document (the credit), we will use transaction code FAGLL03, again I will be talking about the below in more detail in other sections, as you can see the line item is in a open state (red light icon). Now let’s have a look at entering the same document but using the general document entry FB50 (which is known as the enjoy transaction), which lets us see the difference between the two types of entry, the initial screen basically has everything you need (single screen entry), the header information and the line items, also you have a zero balance check (red box), the status can be either red (balance is not zero), yellow (the balance has not been checked) or green (the balance is zero), again you can enter additional information such as cost centers, profit centers, business areas on the line items. Notice that the line items are also checked (green tick) any problems will be highlighted. Again you can simulate and general ledger simulate the document to check for any errors
  • 17. Once you post the document again you will receive confirmation Again you can check the document entry (transaction code FB03) and the account balance (transaction code FAGLL03) The last way to enter a document is called fast entry using transaction code F-02, you complete the header information (left hand screenshot) and then select the fast entry button, which display the right hand screenshot, here you enter the line items, if you notice I have had to enter a cost center to obtain the tax jurisdiction (I will covering cost centers in my controlling section), again you can simulate to check for any errors. You can use templates for entering documents which is called an account assignment model, you can make life a little easy by using them, let’s see an example using the above document entries we have been using, we will use transaction code FKMT to create the template which we will call DD-TMP01, in the screenshot below I have entered the bare minimum Next we need to add the line items which we do by selecting go to -> line items
  • 18. Then we enter the line items which should be familiar to you now, however we will leave off the cost center so that we have to enter this when we use the template, save the template. Now we use transaction code F-02 and complete the header information, but this time we select the acct model button which allows us to select our template DD-TMP01 Which then populates our line item entries, all we have to do is fill in the amounts and post. Obviously we would use this when there are many line items that are the same on a invoice week in and week out. New General Ledger The new general ledger is optional and connects the solutions distributed across several applications in SAP, I have already discussed the new features that the new general can give you in my FI configuration and setup section, with the new general ledger you can use parallel accounting to create different parallel ledgers to report on the different financial reports that are required for the financial authorities, there another other ways to do this but SAP are now advising to use parallel ledgers. There is a new field for the document header called the ledger group which allows you to determine the ledger or ledger group that the document should be posted too, you can use transaction FB50L As you can see I have setup a number of ledgers, I have a section on parallel accounting which goes in depth on this subject, the new general ledger also includes a number of new evaluations that allow you to display individual ledger contents in a financial statement, you can then select a IAS valuation approach for the L5 ledger, which is structured in accordance with commercial law.
  • 19. When you update the new general ledger you can activate document splitting (online split), which enhances the original document with additional information (such as segment), the objective of this is to project account assignment object into document rows where they were not originally assigned, for example the profit center from the revenue lines into the receivables lines, this increases the transparency of the postings and enables you to create additional internal financial statements. Collective postings for the financial statements adjustment is therefore no longer necessary because all information is already available at the document level. Evaluations in G/L accounting SAP maintains two sets of reports both for the classic and new general ledger, you will generally find two folders containing each of the reports, as you can see in the below screenshot, for very quick access you can also use transaction code F.97 to access general ledger reports, you can even turn on the technical names for the reports in the settings menu. All business transactions are posted (books of original entry) chronologically in the journal (daybook, compact journal), the posting data entered chronologically in the journal is transferred from the accounts of the general ledger (balance sheet, P&L accounts). The single column journal is the original form of journal and includes all transactions in one column (separated according to debit and credit), for example a retail company buys goods worth £1,000 on credit from a supplier (non-cash), the company then sells the retail goods worth £500 to a customer for £1,200, which would look like something below Date Posting Explanation G/L Accounts Debit Credit 18/07/2013 goods purchased on credit 1,000.00 1,000.00 20/07/2013 goods picked for sale 500.00 500.00 22/07/2013 goods sold on credit 1,200.00 1,200.00 It is hard to identify the overview of the credit transactions, to remove this flaw we separate the postings on sub-ledger accounts and other G/L accounts, we end up with a two column journal, one column for sub-ledger accounts and the second column for the other G/L accounts, so we end up with something looking like below Date Posting Explanation Subledger Accounts G/L Accounts Debit Credit Debit Credit 18/07/2013 goods purchased on credit 1,000.00 1,000.00 20/07/2013 goods picked for sale 500.00 500.00 22/07/2013 goods sold on credit 1,200.00 1,200.00
  • 20. Then we can go one step further by specifying a column for each customer and vendor posting, which means we have a three column journal, this was used in the majority of copying procedures (automatic entry to reconciliation accounts), Date Posting Explanation Customer Account Vendor Account G/L Accounts Debit Credit Debit Credit Debit Credit 18/07/2013 goods purchased on credit 1,000.00 1,000.00 20/07/2013 goods picked for sale 500.00 500.00 22/07/2013 goods sold on credit 1,200.00 1,200.00 The four column journal, the G/L accounts are split into one for the balance sheet and one for the P&L accounts, this allows the profit and loss made up to a certain period which could be determined to some degree of accuracy. Date Posting Explanation Customer Account Vendor Account G/L Accounts P&L Accounts Debit Credit Debit Credit Debit Credit Debit Credit 18/07/2013 goods purchased on credit 1,000.00 1,000.00 20/07/2013 goods picked for sale 500.00 500.00 22/07/2013 goods sold on credit 1,200.00 1,200.00 Looking at the above table we can see that we received retail goods from our vendor (sender) which was deposited in our warehouse (recipient), when then withdraw the ordered goods from the warehouse (sender) and delivered them to our customer (recipient of goods), finally we invoice our customer (recipient of invoice) for the delivered goods, in this case the sender is the sales order created in the SD component. It shows that the stock of retail goods has increased by £500, it also shows that the profit was made through the sale of the retail goods. Here you can see the overview of the financial assets and profit situation of a company. The G/L account and P&L accounts can include COGS (cost of goods), bank, bank clearing, cash/early payment discount and here we start to progress into a more business model of accountancy. Lastly in this section I will cover the balance sheet which compares and contrasts assets and capital (liabilities), liabilities provide information about the origin of funds and assets inform us about the utilization of funds. The balance sheet details only information about values not quantities, the asset and liabilities are made up of the following At the beginning of a fiscal year there is an opening balance sheet that contains assets and liabilities for the balance sheet key date, the balance sheet items are transferred to individual balance sheet accounts. All business transactions are posted on the balance sheet and P&L accounts throughout the year. The screenshot below shows the balance sheet of my data disk mobile company (company code DD11) You can even drill down to the line item level, by selecting the individual account and selecting the call up report icon (see left hand screenshot), and the line items are detailed in the right hand screenshot
  • 21. Accounts Payable (User's Guide) We cover the basic business principles of accounts payable accounting, we describe the SAP sub ledger, FI-AP (accounts payable) and the different posting methods, we will cover four alternative transactions for entering documents, general posting, fast data entry, single screen entry and integrated invoice verification, we will also cover the payment runs for paying vendors invoices. The main new feature in release ERP 6.0 is accounts payable accounting in the context of payment transactions and bank communication, I will be covering bank accounting in other section. For subledger accounts you differentiate between vendors (accounts payable) and customers (accounts receivable), where in general ledger (G/L) you only mange the total of payables for the financial statement, you use accounts payable for all details regarding business transactions, such as invoices, credit memos and outgoing payments. You have to ensure correct documentation of goods receipt because it is used as the basis for release of payments of invoices. The FI-AP component keeps and manages account based data of all vendors, it is also an integral part of the purchasing system, purchase orders, deliveries and invoices are managed based on vendors and update vendor evaluations. FI-AP ensures that all legal obligations are kept by keeping records that are fulfilled for reliable accounting but also serves as the information source for an optimal purchasing policy and supports the enterprise's liquidity planning owing to the direct integration with cash management and forecasting, account analyses, due date forecasting and further standard reports are available for the open item management. The payment program automatically pays due payables and closes the corresponding items. To document the processes in account payable you can use account balances, journals, balance audit trails and numerous standard reports. For key date valuations you revaluate foreign currency items, determine vendors on the debit side and scan the balances established this way for remaining terms. I do have a whole section on payable accounting in my FI configuration and setup section, this covers the subject from a configuration point of view. Master Data We will now have a look at the vendor master record, which is used for business transactions in the accounting area and in the purchasing area. The master data is made up of three parts, general data, company code data and purchasing data, you can use transaction code XK03 (centrally) or FK03. The data  General Data - is maintained at the client level, the data is available for all company codes. At this level you specify the name of the subledger account in subledger accounting, the tax number and the bank details  Company Code - individual company code data is maintained in this section, this includes the account number of the reconciliation account in the general ledger, the terms of payment and the settings for the dunning procedure.  Purchasing Data - is used with the MM module (materials management), you can enter data on requests, on purchasing orders and for invoice verifications, the data can include conditions (for example purchase order currency, terms of payment or minimum purchase order value), sales data (sales person including telephone number) and control parameters, use transaction code XK03. Lets create a vendor account using transaction code FK01 (use transaction code XK03 if you need to enter purchasing data), I am not going to cover every option as we will be discussing some of them later, here I am filling the details just to get the vendor account created, The vendor account number is controlled by the account group and the account number assigned to it, the account number can have just numbers, characters or both, here the account number is vendor10, which is assigned to the account group 0001 (left-hand screenshot), you can use SPRO to configure account groups and account numbers (right-hand screenshot)
  • 22. The next screen you enter the vendors details, the title can be a person or a company as seen in the left-hand screenshot, the search terms is used for searching vendors, it’s the primary key with which you can search for master records rapidly. The rest of the details are pretty self-explaining The next two sections are the control parameters and the payment details, the control parameters can help if the vendor is a customer, which allows you to have the option to have the system clear receivables and payables automatically (automatic payment program or dunning), you can also enter tax information and the VAT registration number, you can also enter the vendors locations which can help with determine freight charges, you can even specify the type of industry the vendor is in. The payment details are entered on the right-hand screenshot, you specify each bank account that allows the automatic payment program to pay the vendor. If you have multiple bank accounts you have bank keys to determine which account to use, you can also specify an alternate payee which allows the business partner bank to pay, we will discuss IBAN (and SEPA) in the bank accounting section. The next two screens are the contact person details (self-explaining) and the accounting information details, here you specify the reconciliation account, remember a vendor account is a subledger in order to automatically post to the G/L account we use the reconciliation account field (in this case trade payables). The field status group in the master record of the reconciliation account specifies the screen layout for document entry, the items of the vendors account are managed in the currency of the reconciliation account. The sort key is used to display the line items in order, if the sort key is not used then the system will sort via the assignment number. You can use the authorization to control who reads and controls the vendors account.
  • 23. You can only assign one reconciliation account to the customer or vendor master, which as you know postings made to the sub ledger account will automatically update the specified general ledger account (reconciliation account), however sometimes you may need more than one reconciliation account for the same customer or vendor, to classify the different types of transactions you make with them. We can use the IMG In the initial screen you can create multiple reconciliation accounts, if you need more than one alternative reconciliation account linked to the same general ledger account then enter the general ledger account multiple times as you have alternative accounts. You can also use a short key to represent the alternative reconciliation account to ease document entry, you simply enter a two character alphanumeric key as per the below screenshot You need to make sure that in the general ledger account (reconciliation account) you have the recon.acct ready for input checkbox ticked, if you do not see it in the section you can use transaction OBD4, select the document entry field and you should be able to see the reccil.acct ready for input entry. When you are posting to the vendor or customer account you can use either the general account or the ID The next screens details the payment terms and types of payments, you can also specify tolerance groups which can limit the granting of cash discounts and for the handling of payment differences, this affects dunning and the entry of payment transactions. You can block payments and specify house banks (I will discuss this in my banking section) and specify alternate payee's. The screenshot below details the types of payment methods that we will accept from this vendor, this is important as we will select the payment types when we run the payment run.
  • 24. The last two screens are the dunning configuration (I will be discussing this in the accounts receivable section) and the withhold tax configuration, for the time being I will leave these blank. When you save the account you should receive the below confirmation message You can block an account using transaction code XK05, you can block the vendor in all company codes or the selected company code, you can also block it in purchasing. A dunning or payment block can be set at the company code level, you can set or unblock the blocking indicator in the sub ledger at anytime. SAP provides a special master record type for one-time or sporadic vendors, this master record does not contain specific data of the business partner such as address or bank details, this information is separately entered during document entry. When posting to a one time account the system automatically navigates to a master data screen where you can enter the specific data of the business partner. The master records for one-time accounts are stored separately in a specific account group. The system hides the specific fields of the business partner when the master data is entered. If you have lots of one-time accounts you should create multiple accounts and separate them for example first letter and industry, this will help otherwise it may get confusing when clearing and try to find accounts quickly. You can perform dunning on one-time accounts, open items can be dunned and processed using the payment program. Overview of the Integrated Business Transaction Accounts payable in the context of integrated business transactions usually concerns the individual steps from purchase orders to outgoing payments (purchase to pay). Integration also means that the information flow involves different departments. This examples includes the departments of purchasing, accounts payable accounting, controlling and treasury.
  • 25. The ordering process starts with a purchase requisition, before you can generate a purchase order for the vendor this internal approval process ensures clarity and transparency, the purchase requisition defines exactly at which price goods or services may be ordered and an approval of the purchase requisition requires a dual-control or three-control principle. This early implementation facilitates later invoice verifications, additionally the purchase requisition enables the involved departments, controlling and treasury to obtain an overview of the expected expenses or cash outflows. If the goods have been received for the purchase order the goods receipt is not only based on quantities but also documents the exact value of the goods for the purchase order. If no vendor invoice that corresponds to the goods receipt is available at the end of the month, this value serves as the basis for accrual and deferral posting (we will discuss the automatic maintenance of the GR/IR account in the closing operation section). Processing of incoming invoices is one of the traditional areas in accounts payable accounting, services are normally documented in paper form and sent by post, the documents are normally scanned and then archived, which means that documents can be obtained quickly. In addition to having a central inbox and an early scanning process, the optical recognition and interpretation of paper invoices is the next step on your way to an optimized process. OCR allows for default account assignment of the accounting document. Provided that the system finds the corresponding purchase order for the invoice and provided that there are no price differences or quantity variance the system can automatically post the document in the background. If very large volumes are involved the transfer of invoice data via EDI (Electronic Data Interchange) including a subsequent printout of the collective invoice has become established as a process, these are one-to-one connections between customers and vendors. In some industries for example the automotive industry this procedure is already widely used. You can summarized between the following types of processing incoming invoices  Manual processing with late scanning  Manual processing with early scanning, so that an optical image is provided for the workflow in the enterprise  Automatic processing and early scanning via OCR, which also creates default account assignments in additional to the optical image  Automatic processing where large invoice volumes are transferred via EDI If the goods and invoices have been received and the invoice verification has a positive result, the automatic payment program is responsible for making the payments at the optimal time. The payment run includes the planned liquid funds and cash discounts and due dates for net payment invoices, because the accounts payable accountant is involved in this process the sections discuss the manual and automatic payment transactions. Cashed checks enable specific evaluations, you can evaluate when and whether vendors cashed the receive checks and even indicate this as an average value in the master record. Entering Incoming Invoices The general FI-AP posting transaction code is FB01, this is similar to the G/L document entry, we first enter the header details and the first line item, remember the posting key determines the next screen layout, The next screen we enter the full details for the first line item, and then we enter the details for the second line item
  • 26. We lastly enter the full details of the second line item, at this point we can perform a simulate and a simulate G/L The left-hand screenshot is the simulate and the right-hand screenshot is the simulate G/L, here you should be able to pick up any errors, you only have to perform a simulate when you are testing the system, once live you should have the confidence that you do not need to simulate every time. Once you are happy with the document you then post it, the system will confirm the posting as per the message below We can then have a look in the vendors account (left-hand screenshot) and we should be able to see our posting (in an open state), remember this is a sub ledger account and thus we have a reconciliation account (right-hand screenshot) where all documents will be posted as well, in this case account 160000 (trade payables), we should see the same document 2000000012
  • 27. As this is a double entry we should see the other side (debit) of the double entry in the Goods Recvd/Invoice Recvd - not yet delivered (G/L account 191101) Like the G/L document entry we have a single screen document entry for accounts payable, using transaction code FB60, we can enter a incoming invoice, the initial screen is the data entry (left-hand screenshot), notice in the left-hand screenshot the balance still has a yellow icon which means the document has not been checked, also notice that the line item does not have a green tick, again it means that the line item has not been checked, once checked you will notice that the balance icon turns green and that the line item has a green tick which indicates that the document should be ok to be posted (see right-hand screenshot)., if not then check for any errors in the document. Again we can simulate and G/L simulate the posting to check the document Once the document is posted we will receive confirmation as per the screenshot below Again we can check the vendor account the left-hand screenshot (and reconciliation account right-hand screenshot) and see that the document was posted
  • 28. Again the double entry debit side is posted to the Goods Recvd/Invoice Recvd - not yet delivered (G/L account 191101) Lastly we can take a look at the fast entry screen, this is a little different than the last two ways on entering a document, you use transaction code FB10, the initial screen has some basic document header information and allows you to select the input fields for the document header and vendor, depending on what you select here will determine the screen layout in the next screen Now we will see the familiar screens we saw using FB01, again the system will provide you with confirmation that the document was posted successfully (right-hand screenshot) You can also enter an invoice which is related to a purchase order, which was created in MM (Material Management), the transaction code for this is MIRO, I will cover material management at a later date and thus I want you to be aware of this option.
  • 29. When entering invoices using the above methods (FB50, FB60 or FB70), you normal don't need to enter the document type or postings as the system supplies a default, you can change these using transaction OBZO, you can specify a particular company code and transaction type, as you can see in the screenshot below it is pretty self-explaining, as you can SAP already supply default document types. Automated Payment Transactions The payment transaction refers to the processing of the incoming and outgoing payments of an enterprise, this includes  Incoming payments via debit memos  Outgoing payments via bank transfers or checks  Incoming checks with manual check pre posting  Incoming payments via bank transfers returned debit memos and returned checks You can distinguish between the accounting view and the process view, the accounting view differentiates between incoming payments and outgoing payments. The process view in contrast differentiates between the outgoing and incoming payment processes. The outgoing payment process is triggered by a payment run by the company and the corresponding information (bank, account amount, etc) are defined by the SAP system and passed on to third parties, this includes bank transfers and outgoing checks to third parties. The incoming process is triggered by third parties and the corresponding information is provided from the outside (banks, vendors, customers), this includes bank transfers and incoming checks from the third parties. SAP's automatic payment program manages the outgoing payments of an enterprise but also processes the outgoing payment process and thus includes both outgoing and incoming payments (debit memos). There are a number of sections to the payment program  Selection of the due date and open items  Posting of payment documents (accounting documents)  Generation of payment lists and logs  Generation of payment media (check forms, payment advice notes) I have covered how to setup the automatic payment program in my FI configuration and setup section under outgoing payments and automatic outgoing payments, a quick recap the payment method defines which procedure (check, bank transfer, bill of exchange, etc) is used for payment, the specifications for a payment method are made during the system configuration at two levels, there are basic settings that depend on the country that is settings for "US" (United States) apply to all company codes, in addition there are checks that you can define individually for each company code and enterprise. You can also define specific checks as such  Minimum and maximum amounts  Allowed business partners abroad (country code in the master record)  Allowed bank details abroad (country code in the bank master record)  Allowed foreign currency You can use transaction code FBZP to setup or change any of automatic payment program configuration but make sure that you have read the outgoing payments and automatic outgoing payments sections first. A payment block indicator can be used to block accounts or individual items for payment, if a payment block is set the system will display an error message "Account blocked for payment" or "Item blocked for payment" for the
  • 30. corresponding item. The payment block reasons can be accessed via transaction code OB27, you can block a item payment in the document header as seen in the right-hand screenshot, notice the payment block key matches the payment block reasons. Now let’s see the payment run, we use transaction code F110, when the initial screen appears everything is blank, you enter the run date and a unique identification and select the parameter tab, here we enter the posting date, documents that are to be included (up to date) and the customer items due day, the payments control section allows us to fine tune the payments that we are looking for, in my case only company code DD11 will be searched for, payment methods CT (Check and Bank Transfer) will be checked for, see right-hand screenshot for all payment methods. The free selection screen allows you to perform some filtering for instance you could only select USD currency (left- hand screenshot), in this case I will not filter, The middle screenshot allows you to increase the logging here I have increased the logs so that we can see them later (see below for each description), the right-hand screen allows you to configure of the print output of proposal lists, release lists and checks. The logging type information  Due date check - define the due date check is logged for open items  Payment method selection in all cases - ensures that the selection of all payment methods and all banks is documented in the log, you can then use the log to trace the procedure for payment method selection  Payment method selection if not successful - defines that the attempted selection of the payment method and bank is only documented in the log if no allowed payment method or bank is found. The log enables you to identify whether corrections have to be implemented in the master record of the business partner or in the configuration program  Line items of the payment documents - ensures that the log outputs all posted documents including the corresponding items.
  • 31. Once you have filled in the tabs section and then select the status tab you are asked to save the parameters (right-hand screenshot), this means you can come back to this parameter list later. You can see old parameter lists, proposal runs and payment runs if you select on the identification (see right-hand screenshot), you can also see if any proposals or parameter lists have been deleted. We can now run the proposal using the parameters we entered above, we select the proposal button and fill in the schedule, here I will run the proposal immediately, Depending on your systems performance and the number of transactions to check it may take a while to complete, keep clicking on the status button to refresh the screen, you can see that the proposal is being started (left-hand screenshot), eventually the proposal will finish (right-hand screenshot) Let’s take a look at the logs (right-hand screenshot), remember we turned on additional logging so that we can see more details, as you can see in the log the proposal found a number of payments however as we have set a grace period (transaction code FBZP -> all company codes - right-hand screenshot) the proposal will ignore these transactions. Depending on the transactions in your system you may or may not have any payments. If you select the proposal button (with the spyglasses) you will see that no transactions are available for payment.
  • 32. Now I have changed the grace period and re-run the payment proposal, again the payment proposal is the same apart from the dates This time let’s take a looks at the proposal (the spyglasses icon), we can see that a payment of 12,500 is due to vendor10, now this could be made up of a number of transactions, if you double-click on the payment you should be able to see how the payment is made up You can see that it is made up of 3 transactions, from here you can obtain the document numbers, amounts, posting date, document date, etc Now that we are happy with the proposal it’s time to perform the payment run, remember nothing has posted, it is possible to make changes to proposal or you can even delete the proposal, we select the payment run icon, again use the status icon to refresh the screen, you may first see the screen on the left-hand side notice that the posting orders generated is 1 and the completed is 0, after a short while both should be 1, which means that the postings are complete, let’s take a look
  • 33. First let’s have a look at the payment run log, here you can see a single payment has been made into two accounts (remember it’s a double entry system), you can see that the vendor has been has been debited and the citibank bank (G/L 113101) account has been credited, we will verify this in a moment Let take a look at the account balance for the vendor, we can see the payment of 12,500 with a document ID of 70001 which is a vendor invoice but it is also a clearing document, notice the 3 line items we saw earlier, they all have been cleared using this document, basically what we are saying is that we have received the goods and the invoice, however we have yet to actually pay for the items, and this instructs the next phase of the payment process that is to actually pay the vendor, internally someone will now authorize the actual payment to take place. We then check the citibank G/L account, you can see we have a new posted item of 12,500.00, which tells us that we need to pay for this item, once we have paid for this item the bank will issue a bank statement, this statement could be automatically or manually entered and then this document could be cleared confirming that the line items for vendor10 have been paid for, we will cover this in more detail the bank accounting section. During the payment run lots of things are happening in the background, the account determination is all configured using transaction code FBZP, see outgoing payments and automatic outgoing payments sections for more details on how to configure the account determination and then you will have a better understanding on what happens during the payment run.
  • 34. As mentioned above when you make a payment to a customer or vendor the system automatically selects all of the open items that are due and groups them together in one payment, if for example we have a credit memo with a specific invoice that it relates to during the automatic payment it will net it off with all the other open invoices in the account. This may be acceptable however sometimes you may need to group common open items together so that they are groups together in a single payment, we can setup grouping keys to group similar items for payment using transaction code OBAP, in the below left-hand screenshot the fields for grouping payments you can group up to three fields which can be used to group the open items together. Once the grouping key has been created you can add it to the master data of the customer or vendor, for example using transaction code FK02 on the payment transaction accounting tab we can select the grouping key (right-hand screenshot). Manual Payment Run There will be times when you need to enter a vendors payment manually, perhaps you only run the automatic payment run at the end of the month, and then vendor wants his payment earlier, we can use transaction code F-53 (you can also use F-03 or F-51, (F-44 vendors, F-32 customers) which are very similar), here I enter a outgoing payment of 1000.00 specifying the bank account to be 113101 which we saw in the automatic payment run above, this time I use the vendor account pvalle, once the details have been entered I then select the process open items button The system will now search of the open items of the vendor account pvalle, as you can see there are a few of them, now you have to look carefully as the USD GROSS column could have all items in black or all items in blue, what this means this if the item is in blue then it will be available for payment, if in black then it’s not available for payment, you can either select the item and use the items button (activate or deactivate) or you can just double-click the item to activate or deactivate the item. The important thing to remember is that not assigned box contains a zero balance. You also have the options to enter any cash discounts either as an amount or a percentage.
  • 35. Again we can simulate left-hand screenshot) or simulate the G/L entry (right-hand screenshot) to confirm the posting The posting again will be confirmed (left-hand screenshot) and we can see the posting and clearing document in account balance of the vendor (right-hand screenshot) The manual payment is very similar to the automatic payment run except you enter banking details manually, there may be differences that exceed the tolerances limits for posting during a manual payment these limits are defined on the accounting clerk during system configuration, for more information see tolerance groups in the documents sections. There are a number of options available for open items  Posting as a residual item - the systems closes the original open item and simultaneously generates a new open item with the remaining amount  Posting as a partial payment - the original open item is not cleared, the system posts the payment with an invoice reference, for this purpose it enters the invoice number in the invoice reference field of the payment items. Let’s take a look at a residual item, the payment amount exists below the open item, use again use transaction code F- 53 selecting the residual items tab, again the initial screen needs to be filled in, this time I will use vendor pvalle, the amount is going to be used against an invoice of 1000.00 leaving a residual of 50.00
  • 36. Here you can see that I have selected the residual items tab and only selected the invoice of 1000.00, initially the residual items column will be blank double-click the column and it will automatically be filled with the residual, in our case 50.00 Again we can run a simulate or a simulate G/L account Once we are happy we can post the document Let’s have a look at the vendors account balance, as you can see the original invoice has not been cleared using the document above as the clearing document and a new document has been created with the remaining 50.00 Partial payments is the same as residual payment, again create the document header information
  • 37. Then select the payments that you wish to make the partial payment against The two items are indicated as open and are linked to each other with identical content in the assignment field. Evaluations in AP Accounting To make sure that payments are made on time and are not being held up due to security checks (where a payment requires two authorizations), you can use transaction code FK09, in the initial screen (left-hand screenshot) you can search vendors and or company codes and you have a number of options on what to look, when you have made your selection you a list will be generated detailing what payments need authorizing (confirming), in my case I do not have any. Another report transaction code S_ALR_87012078 (due date analysis for open items) allows you to view the expected outgoing liquidity in advance, the initial screen (left-hand screenshot) allows you to perform some filtering, here I will check company code DD11, the report (right-hand screenshot) details what is due in the coming days (right up to 99999 days), as you can see I have 94,900 due in the next 30 days and I only have one vendor.
  • 38. You can also change how the report looks by changing the navigation, here I have selected the posting key and you can see a breakdown of the payments, notice the payment difference we created earlier. The vendor data information system is a kind of cube that is filled with up-to-date information at regular intervals, you can view, rotate and turn this cube from different perspectives, you can use transaction code F.46, you can configure and update the information use the below The initial screen allows you to drill down on a specific path, here you can see that I have drilled down to evaluate the open items in the group client 800. Here you can see the interest that has been accumulated due to the open items, also notice the date in the right-hand corner, obviously this information is out of date and needs refreshing You can also have quick access to the payable reports using transaction F.98, you can even turn on the technical name of the reports.
  • 39. I have explained how to update this information in my account receivable section, using transaction code F.29.
  • 40. Accounts Receivable (User’s Guide) In contrast to general ledger accounting in which you only manage the total of receivables for the financial statement, you use accounts receivable accounting for recording all details regarding the business transactions such as invoices, credit memos and incoming payments. The interaction between the sales department and accounts receivable accounting assumes a significant role here. The sales employees are interested in sales orders and sales volume and they receive incentives in the form of bonus payments for their work. The task of accounts receivable accounting is to convert the invoice amount that was agreed on by contract with the customer into cash receipt. There is a general saying that states "sold and delivered goods remain a gift until they are paid". The management will include rules to handle certain business cases for example how to handle insolvency of one or more customers or total loss in receivables, or if customers are paying too late or don't pay the total invoice amount, these all result in delayed or loss in the cash receipt, however the management must keep the business running. A key figure that is mentioned in business is the DSO (days sales outstanding) value, that is the period outstanding of receivables. Another addition to management is how much time and hence money is invested internally to go from sales order to cash receipt, this determined how well sales and financial account interact with each other, this calls for very clear responsibilities and goals. I will not be mentioning on how to enter incoming invoices in this section as they are the same as in accounts payable, the only different is the transactions codes and the easy access menu location which can be seen below, which means we can focus on the sections that are related to the account receivable. I do have a whole section on receivable accounting in my FI configuration and setup section, this covers the subject from a configuration point of view. FI-AR Component The SAP system includes two components or sub ledger's to save customer data  FI-AR (accounts receivable)  FI-CA (contract accounting) This dualism is due to that enterprises use different business models - business to business (B2B) and business to consumer (B2C) in practice. The B2C business model primary concerns SAP industry solutions for communication enterprises, electricity provides and the media segment. One challenge is to map millions of end customers quickly and efficiently, the data model and the existing programs for FI-AR quickly reach their (time) limits. This is where FI-CA (contract accounting) emerged, which is based on the industry solutions for mass accounting. The processes and hence the programs such as invoice posting, dunning procedures or incoming payments are developed for these industries specifically for the FI-CA subledger. FI-AR and the general ledger are connected in real time, however they are connected asynchronously that is they are connected to the background processing with a time delay. The FI-AR component keeps and manages account-based customer data, the component is an integral part of sales and distribution controlling, it also provides effective credit management through a close integration with SD (Sales and Distribution) module and information for the optimization of the liquidity planning through a connection with the cash management and forecast. Account analyses, alarm reports, due date lists and flexible dunning are available for the open item management, an incoming payment can be assigned to the corresponding receivables manually on the screen or by electronic means. By means of the payment program you can automate both the debit memo procedure and the payment of credit memos. To document the processes in accounts receivable accounting you can use account balances, journals, balance audit trails and numerous standard reports. For key date valuations you revaluate foreign currency items, determine customers on the credit side and scan the balances established this way for remaining terms. Master Data Master data is made of three parts, the general data is maintained at the client level, this data is available for all company codes, at this level you specify the name of the subledger account in subledger accounting, the tax number and the bank details.
  • 41. Next is the company code data, this includes the account number of the reconciliation account in the general ledger, the terms of payment and the settings for the dunning procedure. For integrated use with the SD module you are provided with additional fields for the customers master record, these fields contain information that is required for handling business transactions in the sales and distribution area and that is used exclusively in the SD module, the data includes terms of delivery, price list type and remarks regarding the customer, these specifications control the order processing, the shipping data and the billing information provided that these business transaction are recorded by means of a transaction to SD. I will be fully covering sales and distribution in another section. The SAP system provides a special master record type for one-time customers, in contrast to the regular master records, this is similar to the accounts payable, the master record does not contain specific data of the business partner such as address or bank details. The information is entered for each business transaction during document entry. When posting to a one-time account the system automatically navigates to an entry screen to enter the business partners specific data. Creating a customer is very similar to creating a vendor which we performed in the accounts payable section, you can either create a customer centrally or create it centrally/company code level, the below screenshot displays both methods, we will use transaction code FD01 The initial screen requests for a account group, customer name and the company code, the account determines the account numbering or lettering and the field status parameters. here I will just enter the minimum to get started, also if you notice you can copy an existing account using the reference fields. The first details we will fill in is the address tab (left-hand screenshot), this is all self-explaining, the next screen/tab is the control data (right-hand screenshot), here we can enter tax details, locations (this help in SD for delivery locations, etc), you can also specify if the customer is also a vendor (if you do then a field called Clearing with ... in the account management tab in the company code will appear, you need to activate this field), and you can implement authorizations so that specific users can alter the customers details.
  • 42. The next screen is the bank details (left-hand screenshot) again this is self explaining, the account management screen (right-hand screenshot) details the reconciliation account (remember the customer is a subledger), sort key, cash management group, also you can setup the interest calculation parameters, below are some of the parameters for the account management screen  reconciliation account - Each posting to an account of subledger accounting automatically creates an entry to the general ledger, this is done via the reconciliation account, the field status group in the master record of the reconciliation account specifies the screen layout for document entry. The items of the customer’s account are managed in the currency of the reconciliation account  sort key - used to sort line items, normally line items are sorted using the assignment field in the document.  authorization - specify who receives change or read authorization for this account I have also mentioned how you use multiple reconciliation accounts in my account payable master data section. Next we fill in the details for the payment transactions here we have the payment terms, tolerance group, automatic payment transactions  Terms of payment - is used for orders, purchase orders and invoices and provide information about dunning and payment transactions, the value entered here is used as a default value for the document entry  Tolerance group - you make specifications for granting of cash discounts and for handling of payment differences for each tolerance group, this entry affects dunning and entry of payment transactions. For manual closing the payment differences are accepted by the system up to the define tolerance and the items are closed  Payment history record - the system records the customer payment history, this is important for credit management.  Payment methods - you can define the payment methods that are allowed for the customer if the automatic payment program is used.  Payment block - this causes a block on the account, in the automatic payment program the block is effective if it is set either in the master record or in the document, if set in the master record all open items of this customer are transferred to the exception list.  Single payment - determines that all open items are paid or collected separately, this prevents multiple open items being cleared jointly with one payment.  Clearing with vendor - this checkbox only appears if a value is entered in the vendor field in the control data tab, however an actual clearing within the automatic SAP procedure only takes place if this field is selected Next is the correspondence screen which involves dunning, the accounting clerk, bank statements, etc.
  • 43.  Dunning procedure - the dunning procedure which is company code independent and can be used by all company codes within a client. Only the dunning notices are controlled separately for each company code. To be considered as part of the dunning process you must define a procedure here.  Dunning Frequency/Interval - determines the minimum number of days that must elapse after a dunning run before an account can be dunned again. The date of the last dunning run is recorded in the master record, using this date and the frequency/interval the SAP can determine if it is available to be in the dunning run.  Grace day/minimum number of days in arrears - used to determine the due date of open items and whether an account can be dunned. An item whose days in arrears are smaller or equal to the grace days must be considered as not due.  Number of dunning levels - for each dunning level you can specify how many days in arrears a line item must be to reach the corresponding dunning level. The dunning level determines the associated dunning notice.  Processes to be dunned - you specify whether the stand and/or special G/L transactions are dunned with a procedure, special G/L transaction include bill of exchange payment request, payment requests, down payments and down payment requests.  Dunning block - the business partner is not included in the dunning run, you can enter a blocking key which is a descriptive text that indicates the reason for the block, blocked accounts are output in an exception list which includes the block reason.  Dunning level - normally this is set within the dunning program, however you can set it here, the dunning level influences the next dunning run, if set to 0 the system uses the minimum number of days in arrears that are specified in the dunning procedure to calculate the necessary days in arrears for all other dunning levels the system uses grace days  Dunning clerk - the name of the clerk whose ID is indicated in this field is printed on the dunning notices, the dunning and account clerks can be same of different  Accounting clerk - the name of the clerk whose ID is indicated in this field appears on all correspondence documents sent to the business partner, additionally it is printed on the dunning notices, if the dunning clerk field is blank The last screen is regarding any insurance that you may have, I have already covered withholding tax in my FI setup and configuration section.  policy number - you can define the link to an export credit insurance policy  institution number - you can define a number for the institution  amount insured - you define the value of the insurance  valid to - here you can enter the renewal date  lead months - this signal factor you must maintain the maximum date of required payment to be granted for your customers  deductible - some export credit polices include a deductible share of the policy-holder, this rate is between 20 and 40% depending on the insurance risk When you save the customers account you will be informed by SAP as per the below screenshot
  • 44. The customer will now be available for you to post invoices, etc. If you display the customer and you receive the below informational message (left-hand screenshot) this means you need to confirm the customer (you need to be a different user), from the display screen select extras -> confirmation of change from the menu bar and you will be taken to the customer confirm change screen (middle screenshot), if you notice in the confirmation status (company code) it needs to be confirmed, select the confirm button and the screen will be updated, you will then not see this message again. As in vendors you can block customers, using transaction code FD05 the initial screen (left-hand screenshot) requests for the customer name and company code, you can block for all company codes or just the selected company code. You can also do this centrally using transaction code XD05. The sub ledger’s provide you the option to set flags for the deletion of all master data or company code specific master data of certain company codes, you can use transaction code FD06,  general data - this flag prevents the deletion of general data from the master record by archiving the program  selected company code inc. general data - this flag you determine the company-specific data of the master record must not be deleted, if set none of the associated general data is deleted. Overview of the Integrated Business Transaction Like we did in the accounts payable I am going to explain the business transactions relating to account receivable, this usually concerns the individual steps from order entry to incoming payments (order to cash), again different departments will be involved, departments of sales and distribution, accounts receivable accounting, controlling, and treasury. During the incoming orders in the sales and distribution department two critical checks are implemented in the background  can the goods be delivered at the requested date  does the customer have a sufficient credit limit
  • 45. Both may require interaction with the customer, a successful incoming order impacts the future cash inflow of an enterprise, with the date of required payment you are provided with a date for the planned cash receipt, this is significant for the treasury department. The controlling department can identify planned revenues for products x, y, and z, already in the forecasts by means of the incoming orders. In real life the next steps of the process chain, the goods issue, is carried out days, weeks or even months after the incoming order, at this time the goods are removed from storage and delivered to the customer, again credit checks may be performed just before the goods are sent. The next step is the billing documents for the delivery and services provided as a receivable in the accounts receivable accounting. The customer is requested to pay within the time period that was agreed on the incoming orders, at the same time this information is forwarded onto the controlling and treasury departments. The billing status is much more meaningful that the incoming order status for a profitability analysis of products x, y and z for a liquidity planning. At this point the order is processed, the goods are delivered and the billing brings in the cash receipt closer. There is a saying as in accounts payable that "delivered goods remain a gift until they are paid", a customer will receive written dunning notices in multiple dunning levels after the date of required payment has been reached. In practice you use three or four dunning levels with dunning intervals of 7 to 14 days, however customers (not all customers) normally delay payment until they receive the third or last dunning notice. Dunning can be performed by email and by telephone where you would call the customer to remind them at the payment is due, plus this adds the bonus that you can ask them if they are satisfied with anything or if you can help them with more services, almost trying to obtain additional sales without being too demanding but using the justification of the dunning notice for the call. The final step of the process chain takes place when the customer pays, the payment is credited to the enterprise account, and the information is available via an electronic bank statement. Payment notes indicate which bills are supposed to be paid with the cash receipt, these notes are used for an automatic clearing of the original bill, however there may be times which manual intervention is required to match the payment with the order. Monitoring Credit Limits It is important to monitor the credit lines of customers, credit checks are performed and goods/services are not performed or sent until clarification has been obtained with the customer for the credit limit breaches, it maybe that credit limits can be increased or that they customer will pay over the phone to reduce the amount of credit they have. Over time credit limits will match what the customer needs and hopefully there will not be too many issues, as the last thing that you want to do is make the customer go elsewhere for the goods or services but at the same time you need to make sure that orders are being paid on a reasonable timescale. The SAP credit management system allows you to keep the history on each customer in one place, this includes payment history, dunning levels and order volumes and external information regarding credit ratings. When you enter a order (transaction code VA01) or invoice (transaction code FB70) the system will check and alert if any credit limit (right-hand screenshot) is breached or if a clerk does not have the limits to input the invoice (left-hand screenshot), you can see how to create credit limit areas in the FI setup and configuration section. Dispute Management I will cover the dispute management lightly here until I get more experience with it, all businesses have to deal with disputes with customers and vendors, and they can be divided into three categories  The customer informs the enterprise proactively - the complaints department, the account manager and accounting must all be able to initiate a dispute case  The customer claims payment deductions - the SAP system unsuccessfully tries to settle a number of invoices by means of a electronic bank statement. The dispute management can automatically generate a dispute case with the associated items, indicate difference and forward it to the clerk defined in the customer master record.  The customer hold backs the payment - the open items become over due after the terms of payment have expired, a dispute case can be created automatically before the dunning notice. The dispute case created remains connected to the open items or the business transaction, you can open the dispute case processing from the SAP menu as seen below
  • 46. When you open the dispute management you are taken to the initial screen as per the below screenshot (left-hand screenshot), I have highlighted in red boxes some simple search options that you can use to find open cases, also you have different RMS (Record Management Systems) which are used for the logical separation of different business areas (right-hand screenshot), which are physically used in the same client of an installation. By dividing the records of a company into discreet units means that it is possible to provide particular groups of users access to particular records. You can check to see the history of the dispute (left-hand screenshot) and see what documents or items the dispute has been connected to (right-hand screenshot), we will take a closer looking a moment when we create a dispute case. So let’s create a dispute case with a existing transaction, for this example I will use customer DDCUS01 and select a open transaction, you can then select environment -> create dispute case The dispute case initial screen looks like below, fill in as much as you can and then select the save icon
  • 47. The SAP system then displays a confirmation message that a dispute has been opened for this document, it a shame that you don't see the dispute case ID You can add an additional column called case ID in the customer line item display screen, which displays the dispute case id for all the documents, you can either double-click the case ID or select extras -> display dispute case to see the dispute case The system then displays a list of the dispute cases, again you can double-click on the dispute case to see the header information The dispute case header information has lots of details which includes who opened the case, the amounts involved, contact details, reasons for dispute case, etc. Notice the amount as we will be creating a credit memo later and linking to this dispute case
  • 48. We can then use the dispute case manager to also view dispute cases as we saw earlier, here you can see the two cases that I have open (including the one we created earlier) Let’s say that we have agreed to create a credit memo for 1500.00 for the damaged goods (something is better than nothing), once the credit memo has been created we use clearing to make a residual payment against the original invoice (I have covered in detail residual payment in my account payable section manual payment run) Now let’s see what has happened in the dispute manager, here we can see three entries, the original invoice, the credit memo and the residual item, so the dispute manager knows what has happened, the original invoice has now been resolved but because we still have the dispute case open it has attached to the residual item. You can double-click any of the below line items to obtain more details. If we look at the header we can see that the amounts have been adjusted because a credit memo has been applied
  • 49. You can view the changes in the log files Finally, you can close the dispute case by either paying the invoice and clearing the open item or by using the dispute header and selecting the void button, you can then see the closed by completed (left-hand screenshot), also if you look at the open item the case ID has been removed (right-hand screenshot) Dunning You can dun by two methods either by telephone or by email, generally customers ignore the first couple of dunning notices and until the more threatening ones are sent the customer takes no notice of them, of course this then delays the payment, this first thing to do regarding customers and credit risk management is to obtain a list of the customers who are at risk, we must collect the relevant information regarding customers in arrears for example open postings, incoming payments, dunning's or risk assessment. Then you can call the customer to remind the customer of the payment and to make arrangements for the promise to pay or dispute the payment. You can find the SAP collections management tools as in the below screenshot, in this section we will look at the work list, I cover this section in more detail in the sales and distribution section, On the initial screen you can select from one of the configured collection groups, here I will select group_us
  • 50. The system will then (based on rules) highlight the business partners and their position regarding credit risk, the list is sorted by the riskiest customers (the ones who probably will not pay), the list also contains the outstanding payments, what needs to be collected (overdue), any promises by the customer regarding a payment, and the broken promises, disputed amounts and dunning. The accounting clerks will use this list to call customers to find out if the customer is willing to pay outstanding invoices, we will take a look at copper field LTD First we can select a valuation according to strategy option to find out why a customer appears on the work list at a particular position, in our case this customer is at the top of the list, so let’s we why The valuation this company has a very high valuation meaning that this company is a high risk, the valuation is broken down into section each with a score, each section has details on how that score was achieved, for example the score 25 was achieved because there a number of days that are overdue by 15 days which totals 2,000 USD, we also have a total of 1,000 USD that are overdue by 30 days giving a score of 20, etc. basically the higher the score the higher the risk that we will not get the money from the company and it would be a good idea to find out from the company itself to see why they are not paying, perhaps they are in financial difficulties and if this is the case then we must block the company to make sure that we do not supply any more goods or services. We can also drill down on each customer by double-clicking on the customer line, here we can see a breakdown on the documents (invoices), we can see posting dates, due dates amounts, if any payments have been paid, any promises made for payment. If you double-click on a line here you are taken to the document itself, From this point we can either create a promise to pay, dispute case, resubmission, I have already covered disputes so let’s take a look at promise to pay.
  • 51. After selecting a document and the promise to pay, the bottom half of the screen changes to a promise to pay screen, here you can enter details that have been agreed with the customer (after a phone call) on what date a payment is expected, remember this is only a promise and not actual payment and as we will see soon promises can be broken We can see open and broken promises in the promise to pay tab (left-hand screenshot), here we can see a number of promises that have been broken and we have a open promise to pay an invoice, again we can use this screen to chase the customer for payment, or make a decision to block the customer until we receive payment. If you double-click on a document you can taken to the case screen, here details have been entered regarding the telephone calls to the customer Lastly we can see all the dispute cases we have with the customer, again this should be checked regularly and phone calls should be made to chase the customer for payments, remember all this chasing is costing your company money which reduces your profit, the less people that we have to employee to chase customers who don't pay the better for the company.
  • 52. As you can see the collection management component hooks into the dispute management component, account receivables and credit management. Next we will look at dunning via email, most customers are loyal and do pay on time, however customers can get busy or are very large that they do need a gently reminder that a payment is due, it the same for us when we forget to pay a utility bill, a letter is pushed through your door as a gentle reminder to pay, the longer you go without paying the gentle reminder turns into a threatening letter, and they have a right as you have used your service and thus you must pay for it, the procedure is below 1. Reminder by sending a copy of the invoice or an account statement 2. Dunning notice including the due date of the debt and request for payment 3. Notification of collection implemented by a collection agency 4. Assignment to a collection agency 5. Last dunning notice with threat of legal action The dunning program selects the open items of the business partner accounts and determines the dunning level of the respective account or documents and creates the dunning notices. The dunning procedures are independent of the company code and define the dunning interval, the grace days for the due date determination and the number of dunning levels. The dunning program passes through multiple successive steps and includes both manual and automatic processes 1. Maintain Parameter - to trigger an automatic dunning you must specify the key date for the due date check and which accounts the dunning program is supposed to check. The dunning program creates a dunning proposal that you can edit on the screen 2. Create dunning proposal - this is implemented automatically by the dunning program 3. Edit dunning proposal - the user can specify the dunning's he wants to edit, you can select according to processor or dunning level for example. In the dunning proposal the user can decrease the dunning level of the individual items, also you can release items or accounts for dunning for which a dunning block is defined, all changes of a dunning run can be logged 4. Print dunning letter - the dunning level and the dunning date of the line items as well as the account concerned are not updated until the print of the dunning's. Therefore the dunning proposal can be repeated as often as you like, both customers and vendors can participate in a dunning procedure. You can access the dunning program via the easy access menu as in the below screenshot or you can use transaction code F150,
  • 53. The initial screen looks similar to the payment program, here we enter a run on date (which is used in the dunning letters) and a unique (for that date) identification which will identify different dunning runs, then we enter the details into each tab In the parameter tab we enter the following, the dunning dates and the company code DD11, we will dune all customers  dunning date - the date that appears in the dunning letters, the system use it to calculate the days in arrears  documents posted up to - all documents posted up to this date are checked for the due date during this dunning run  company code - the system only considers the documents of the company codes that are entered here, you can enter single values or intervals  customer account (vendor account) - the dunning run considers the accounts of the customers or vendors that are entered here The free section allows you exclude or filter the items in the dunning run, you can narrow your filters using the left- hand screenshot, and the right-hand screenshot lists the fields that you can use to filter the dunning run. The last tab is the additional log, here you can log a high level of detail for all or particular customers or vendors You can then save the dunning proposal, which can be edited before running
  • 54. The status screen is also indicates that the parameters have been saved Now we select the schedule button to perform the dunning run, here I start the run immediately The dunning run consists of three steps 1. Select accounts - first the dunning procedure checks the business partner record to see when the last dunning run's date in the masters data is before the date that is determined by the dunning interval 2. Dun items - all documents found for the selected accounts are searched and checked for their due date 3. Dun accounts - finally you determine the dunning level at which the account must be dunned Depending on the volumes of customers this procedure could be run in the background and during quiet times, the status section is updated of the scheduled dunning run (left-hand screenshot), if you press enter several times eventually the dunning run completes (right-hand screenshot) We can then have a look at the log file, you can see some of the common problems that may occur  No dunning procedure exists, not dunnable - the program cannot determine at which interval and levels the customer is supposed to be dunned, you need to look in the business partners master data to see if a dunning information has been setup, the result is that the business partner will be excluded  Account XYZ is blocked by dunning run 02082013 PFV1 - the business partner has already been selected in another dunning run, the identification has been given to you, a business partner can only exist in one dunning run.  Amount not sufficient for dunning - the amount has fallen below the minimum amount defined in the dunning procedure, sometimes a high credit memo can result in the balance of a customer account becoming a payable, the same for a vendor and you have defined a clearing.  Account has payment method for incoming payment - in the customer account you have defined an automatic debit or a debit memo procedure for the payments methods, because the payment run enables you to collect money yourself, it is not due to the customer that the documents have become overdue.
  • 55. In our case we can see a number of documents which are considered to be dunned and thus will receive a dunning letter which we will see shortly We can also have a look at the dunning list which details the documents that are to be dunned, there is lots of information here, days in arrears, due date, posting key, currencies (both local and foreign) and amount So let’s have a look at a dunning letter, we can select the sample printout and fill in the details as in the screenshot below, then select the spyglasses Here we can see the dunning letter to customer DDCUS01, I have to split the screenshot into two sections as the letter is too big to capture in a single screenshot, the letter details the outstanding open items, which includes the due dates and the amounts
  • 56. Here is customer DDCUS02 dunning letter Lastly after the dunning letters have been printed the documents get updated with the dunning details, notice the dunning columns, the last dunning run date in entered and the dunning level column. You can check the dunning run status to see what events have happened regarding the dunning run, here we can see the following  the dunning parameters were saved (maintained)  the dunning run was scheduled and complete  the printing of the dunning letters (this updates the documents)
  • 57. Evaluation in Accounts Receivable The are many predefined evaluations in SAP, I will show you a few which is only a small fraction of the many possibilities available, particularly in the area of receivables, where transparency is worth a lot of money. First let’s look at our customers, using transaction code F.20 (left-hand screenshot) you can list customers details, you can chose what information is displayed and you can also limit the customers or the company code, the report can be seen in the right-hand screenshot Next we can look at the customers balance, this will help to find good volume customers, hopefully they are also paying on time, we will use transaction code S_ALR_87012172 or you can use the SAP easy access menu as seen below Again we get a similar filter screen (left-hand screenshot) which can widen or narrow your search, the report is displayed in the right-hand screenshot Next we can see the customer payment history which is equally important as sales, you can use transaction code S_ALR_87012177 or use the SAP easy access menu as seen below
  • 58. Again we start with a filter screen (left-hand screenshot), the report is displayed in right-hand screenshot, this report can detail the customers who pay late regularly (see the arrear column and the ones with the minus sign) Customer valuation with OI sort list is a good aging report (transaction code S_ALR_87012176), it details customer information, commitments, sales information, payment information, dunning information sales amounts and payment amounts, etc. You can also adjust the due date sort list into whatever days you want (see left-hand screenshot) The accounts receivable info system is a kind of data cube that is filled with up-to-date information at regular intervals, we saw this in the accounts payable section, you can view rotate and turn the cube to view it from different perspectives, you can use transaction code F.30, the initial screen is shown below, remember that the data of the cube is static and needs to be refreshed from time to time which I will show you how to do in a moment
  • 59. The DSO (days sales outstanding) is the period between the billing and the incoming payments, this monitors the customer payment behavior, you can breakdown into complete client (group) or individual credit control areas (see screenshot above). In the below screenshot we can see the DSO information at the client level, we are basically looking for low levels in the DSO days column, if this become too high (I have a high level here as I need to update notice the key date in the top right-hand corner) then you need to investigate why it is taking so long to get the payment, perhaps the dunning needs to be more efficient. If you double-click on any of the company codes you will get the right-hand screenshot which breaks down into the customers. Next we can have a look at the overdue items, here I am looking at the client level which details all the company codes, again we are looking in the days in arr. column for high number of days, you can also keep drilling down by double- clicking on a company code, this will display the document numbers. If a receivable exist in a foreign currency the gain or loss from exchange rate fluctuation is implemented at the time of the incoming payments, you can use the currency analysis of the accounts receivable info system to illustrate the effects of the current exchange rates in advance. In the screenshot below you can see that the customer Becker Berlin we can
  • 60. see the difference of -229.49. The currency analysis helps you keep an overview of the possible risks and the losses and gains from the exchange rate fluctuation during the periods between the billing and the incoming payment. To update the info system, we will use transaction code F.29, enter a job name and then click on the step button We enter the job details, SAP have automatically suggested a program name and a variant, select the save button Then we select the start condition button and the below screen will be displayed, here I have selected immediate, however you could create a schedule here if you wish
  • 61. When you save you will get confirmation at the bottom of the screen If you select the own jobs button you should be able you see your job at the bottom (left-hand screenshot), you can drill into the job to obtain more details as per the right-hand screenshot. Now let’s have a look at the overdue items again we can see that the key date has been updated, remember to update the data before you start analyzing Next we can have a look at the credit management, you can use transaction UKM_MALUS_DSP or use the SAP easy access menu as per below, you will be taken to a filter screen which you can apply any filtering The report will eventually produce a list, here we can see the exposure details of each business partner, the credit exposure, credit limits, utilization, it even has a icon to give a visual indication, anything over 100% utilization needs to be investigated
  • 62. Hopefully with the above you should be able to identify any customers who are not paying and thus you could change the dunning procedures to try and get the payments in on time without upsetting the customer. You can also have quick access to the payable reports using transaction F.99, you can even turn on the technical name of the reports. Lastly we have already discussed the dispute management but again this area also needs to be kept an eye on, you don't want the customer coming back saying they are waiting on you to decide on something, make sure that each dispute is up to date and that the customer is regularly updated, the accounting clerks should be checking the dispute cases on a regular basis.
  • 63. Asset Accounting (User's Guide) In this section I cover the basic principles of asset accounting and the SAP sub ledger FI-AA from the users perspective, the more asset-intensive an enterprise is the more significant the FI-AA component is, tangible fixed assets are managed not only on the basis of their physical location but also on their value. In addition to local accounting principles complex fixed assets are frequently valuated in accordance with IFRS or U.S. GAAP, in this context the depreciation posting run and its parallel valuation is a main feature within asset accounting. I have a whole section on asset accounting in my FI configuration and setup section. Fixed assets can be divided into tangible fixed assets, intangible fixed assets and financial assets Tangible fixed assets are complex fixed assets such as buildings, machines, etc that are at the long-term disposal of an enterprise Intangible fixed assets are assets such as patents, licenses, software, etc Financial assets are shares in other enterprises, long-term securities, long-term loans and mortgage claims Traditional asset accounting encompasses the complete history of the asset, from purchase order or initial acquisition (possibly managed as an "asset under construction" (AuC)) through to retirement. The system will calculate the values for depreciation, insurance and other purposes between two points in time and then make these values available in many different forms in the Asset Accounting Information System (AAIS), in addition an evaluation facilitates depreciation forecasting and the simulated development of asset values. The FI-AA component does not have any country specific valuation rules hard coded, which helps with the depreciation of an asset, at present parallel valuation approaches in accordance with local and international depreciation regulations are the normal, the capitalization criteria for an asset in accordance with local regulations and with international accounting standards largely correspond to each other, this means that apart from some minor exceptions for intangible assets there are no relevant (practical) differences between capitalization prerequisites of both. FI-AA component FI-AA (Asset Accounting) is used to manage and monitor tangible fixed assets with the system, data can be transferred with other components within the SAP system for example it is possible to assign the invoice receipt and goods receipt in the material management (MM) module directly to the assets in the FI-AA component, also depreciation and interest can be transferred directly to financial accounting (FI) and cost accounting (CO). Like accounts payable and receivable asset accounting is also treated as a sub ledger of financial accounting, however to cover all legal and accounting requirements it is necessary to define some organizational elements. We will start with the chart of accounts and the chart of depreciation, the chart of depreciation summarizes the valuations permitted for each depreciation area (local law, tax depreciation, IAS, etc), it basically describes the purpose of the calculation, and as thus it is a directory of depreciation areas organized according to business management requirements. The assignment of a company code to a chart of depreciation is independent of its assignment to a chart of accounts. Each company code uses one (and only one) chart of accounts and chart of depreciation, whereby a fixed relationship has not been defined between the chart of accounts and the chart of depreciation. In general a chart of depreciation is setup for each country and used by all company codes associated with this country, you should copy and existing chart of depreciation and then use this one, the following objects are linked to a chart of depreciation  Depreciation areas  Investment support measures  Depreciation keys  Characteristics of transaction types SAP supplies country specific charts of depreciation, (sample charts of depreciation) in which different depreciation areas have been fully maintained,
  • 64. A depreciation area shows the valuation of a fixed asset for a particular purpose, it stores any information concerning the valuation of a complex fixed asset, the FI-AA component provides the following  Up to 99 depreciation areas can be used, in parallel for each asset  If required the values of depreciation can be posted automatically in FI  Depreciation areas can be used without restriction, there are no technical specifications Each depreciation area permits the use of all forms of depreciation, interest and revaluation calculation, for example different deprecation areas can manage the same values and depreciation parameters but show them in different currencies, here are some more different business requirements  local balancing of accounts in accordance with regional requirements  the balance sheet for tax purposes (if another valuation is permitted)  the balance sheet in accordance with IAS (if the valuation is necessary)  managerial accounting  parallel financial reporting ( for example, as part of a group's balancing of accounts) Separate transaction figures are managed for each asset and depreciation area (asset balance sheet values, depreciation, net book values, etc). Depreciation area 01 implements online postings to the general ledger and documents are transferred on a one-to-one basis, this means that during online posting each original document assigned to an asset is posted to exactly one asset without summarization. Only depreciation area 01 which is the master depreciation area has integration into general ledger, accounts payable and accounts receivable accounting. You can deactivate any depreciation areas that you are not using and you can re-activate them at a later date, or add additional depreciation areas. Asset xy in Year 2013 Balance Sheet value Depreciation Net Book value Book Depreciation 100,000 40,000 60,000 Tax Depreciation 100,000 40,000 60,000 Cost Accounting Depreciation 100,000 10,000 90,000 Parallel Depreciation 100,000 10,000 90,000 SAP has a large number of valuation parameters which you define various factors that influence the calculation of depreciation, see the below diagram When configuring the system you need to specify if and how values are posted from the depreciation areas to the general ledger, you need to answer the below questions  will any values be posted  will the asset balances be posted in real time and the depreciation values be posted periodically
  • 65.  will the asset balances and depreciation values be posted periodically  will only the depreciation values be posted periodically Depreciation area 01 asset balances must be posted in real time to the general ledger, the system uses two types of depreciation area Real depreciation area this is regarded as the master depreciation area that supplies values to your balance sheet, also known as the book depreciation area you normally designate this as 01, this area is characterized by automatic posting to FI with currency the same as that of the company code, you will not be able to adopt values/deprecation terms from other depreciation areas and you will not be able to delete this area. Derived depreciation area this determines new assets values from values that have already been determined in other depreciation areas by deriving values using a mathematical formula (addition or subtraction), you can setup the formula to derive the values from a maximum for four real deprecation areas, you can also post the values from a derived area to FI. An asset is assigned to a cost accounting object, it is therefore possible to use the following cost accounting objects  Cost center  (Internal) order (real or statistical)  Activity type You can post from any of the depreciation areas into controlling, for cost-accounting depreciation of an asset you can use one of the following three options  Debiting a cost center  Debiting a (real) order  Debiting a cost center and a statistical order Before we move on to asset master data, we need to consider the integration relationships within the SAP system, data is transferred not only directly from modules to asset accounting but also from asset accounting to other modules, for example when acquiring assets or producing them in-house, the invoice and goods receipt or withdrawal of material from the warehouse in the MM module is assigned directly to the asset in the FI-AA component. On the other hand depreciation and interest can be transferred directly from financial account (FI) and Controlling (CO). Maintenance activities that must be capitalized can be settled from the PM module (Plant Maintenance) to the relevant assets, as seen in the below diagram For example if a product is produced in-house the asset becomes an asset under construction (AuC), you can assign material withdrawals directly to the AuC object or initially to the corresponding internal order. At first the corresponding order is settled in periodic intervals to the associated asset AuC before a special transaction is used to capitalize it to one or more assets. In the in-service phase the asset is depreciated periodically in accordance with defined rules and the calculated depreciation values are posted accordingly, at the same time the CO object (cost center or order) defined in the asset master record is debited with the depreciation costs, this continues until the end of the assets life when it is either scrapped or sold to a customer. Master Data When structuring fixed assets in the system you can choose from the following three structural concepts
  • 66. Balance Sheet Level offers three-level hierarchy at the balance sheet level, here a distinction is made between the balance sheet version, the balance sheet item and the general ledger account. Group Level asset classes are used to structure fixed assets, the assets are structured according to legal or business requirements, each asset must only belong to one asset class, account determination is used to assign each asset to an individual balance sheet item. Asset-Related Level offers a four-level hierarchy at the asset-related level, the group asset makes it possible to group a number of assets together for the purpose of a common valuation and depreciation, this is useful for complex machines and production lines. Below the main asset number, asset sub numbers can be used to further divide the asset into its asset components. The allow subsequent asset-related acquisitions to be considered separately, the lowest level consists of the transaction data that belongs to the relevant master record (line item). Complex fixed assets with comparable properties such as a common balance sheet account in the general ledger belong to the same asset class. Each asset will be in only one asset class, therefore there is at least one asset class for "low-value assets" and one for "assets under construction", you can define the parameters and default values for each class, an example of this is shown in the diagram. Asset classes are use for account determination, which must be defined for each asset class, the G/L accounts of the relevant chart of accounts, which are to be automatically posted for the various business transactions are defined for this account determination, as can be seen in the diagram below You can also structure assets by using group assets or sub numbers, if you want a common depreciation calculation for several individual assets, you can group these assets together to form one group asset. If a complex fixed asset consists of several components that are to be valuated separately you can divide a complex fixed asset into sub number master records. One reason for doing this may be to facilitate separate value development for subsequent acquisitions or partial aggregates, the below diagram shows how asset sub numbers are handled for subsequent acquisitions.
  • 67. Once the structure has been defined for a group of tangible fixed assets, you can create the master data using transaction code AS01, you have two options  Specification of company code and asset class - the asset class delivers the most important parameters for the master record  Specification of a reference - the reference master record delivers the most important parameters for the master record The initial screen (left-hand side) requests for a asset class (you can see some of the asset classes in the right-hand screenshot), the company code and the number of similar assets (you can create multiple assets that are similar in one go), the reference field allows you to copy an existing asset The general tab is where the account determination is defined and this cannot be changed, the acquisition, retirement, depreciation, gain and loss accounts are defined behind the configuration. The inventory number field is optional, you can make the asset number correspond to the inventory number. You can use the quantity field a master record can also be used for quantity management, in this case you would only create one master record for the number of assets you are creating, however this has some disadvantages, you cannot use the location or cost center. The system automatically maintains the data in the posting information area the first time an acquisition is posted.
  • 68. The time-dependent tab is used by cost accounting, if depreciation is monthly the system considers the current CO object, here you can see that I have defined the business area and the cost center, there are a number of optional fields that can be used. The allocations tab is used for evaluations, you can define up to five (only four shown below), you can also define a asset super number to summarize or "compound" several asset master records (for evaluation purposes). The lower half of the screen allows you to integrate into the Equipment Management Module EAM (Enterprise Asset Management), the right-hand screenshot display the EAM screen of this asset, here you can add warranties, locations, serial numbers, stock information The origin tab is automatically filled when an asset is purchased, the vendor master record for the purchasing document is transferred to these fields, The net worth tax there is a special form of taxation on fixed assets (in some countries), you require functions for a tax on non income values or net worth tax, if your country does not have this then you can leave this blank The insurance tab allows you to enter any insurance details regarding the asset
  • 69. Lastly the deprec.areas tab the default values are transferred from the relevant asset class or reference master record, you can change or enhance these values, the straight line method is used to depreciate the server over 5 years. You can see the many different depreciate areas that this asset has. Once saved the system will display a confirmation as seen below There may be a case were number ranges have not been setup, you can use transaction code AS08, I also have a complete section on how to configure asset accounting in my FI setup and configuration section. You can use the below transactions or use the SAP easy menu to change or delete assets, I won’t cover these in details as they are self explaining, the lock can be used to lock a new asset until the invoice is obtained thus stopping any incorrect postings.  change - transaction code AS02  display - transaction code AS03  lock - transaction code AS05  delete - transaction code AS06 If a complex fixed asset consists of several asset components it may make sense for technical reasons to manage these components as sub numbers of an asset, in the below diagram we can see the asset is a PC which is made up of two sub numbers referring to the desktop/keyboard and the monitor. You can use transaction code AS11 to create sub numbers
  • 70. Asset Transactions Asset business transactions are subdivided into transactions that cause change in stock (acquisitions and retirements) and that affect net income (depreciation and write-ups), to create an asset history sheet at the end of the year we need additional information, this information is the transaction type. Transaction types determines the type and content of a transaction, it controls the following points  account assignment  which value fields are updated in which depreciation areas  the assignment of the corresponding asset history sheet group  whether it concerns a debit or credit posting  the document type Each transaction type is assigned to only one transaction type group, the main control parameters of a transaction type are derived from the assigned transaction type group, in addition they categorize the possible business transactions (acquisitions, investment support measures, down payments, etc), transaction groups are fixed and cannot be changed. The document type is a two-digit alphanumeric key that is defined in customizing, one range is assigned for each document type (document storage), account types are defined for each document type and must be used when creating a document. Document type AA means the document is posted as a gross amount, that is, without deducting a cash discount, whereas document type AN means the document is posted as a net amount, that is, with cash discount deducted from the capitalization amount, here are a couple of examples  Net procedure - the invoice is $10,000 and a cash discount of $500 (5%) is applied, because there is a net posting the value of asset 4711 immediately decreases by the invoice amount less the cash discount, in this case the acquisition posting is $9,500  Gross procedure - the invoice is $10,000 is immediately forwarded to the complex fixed asset as an acquisition posting. the cash discount amount only reduces the acquisition costs of the complex fixed asset when the vendor payment (including the cash discount) has been made, the report SAPF181 (profit and loss adjustment) is used to adjust the values at the end of the period. Acquisition costs and production costs are key terms in asset acquisition, they include the acquisition price the incidental acquisition costs less the acquisition price reductions, the incidental acquisition costs are those costs needed to make an asset operational, whereby sales and administration costs and other overhead costs are only included in the acquisition costs if they can be attributed directly to the acquisition of the asset. The acquisition posting can be made in the department that is responsible for the transaction, you have three options (also see diagram below)  In the FI-AA component with integrated accounts payable accounting without a purchasing order reference  In the FI-AA component without integrated accounts payable accounting and without a purchasing order reference  In the MM module (Material Management) with integrated accounts payable accounting and a purchase order reference. I will not show you the first option FI-AA with integrated accounts payable accounting without a purchase order reference, the "asset to vendor" posting is frequently made by accounts payable accounting, when posting to the vendor account or asset account, the corresponding G/L accounts are automatically updated via the defined account determination (payables or asset balance), we can use transaction code F-90, this is familiar with the accounts payable and accounts receivable data entry, we enter the header details (left-hand screenshot) using posting key 31 and the vendor account pvalle, we then fill in line item 1 details (right-hand screenshot top section), the next line item details are filled in at the bottom of the screen, we will use posting key 70 (debit asset) and we select the asset from the list in the account section, see the popup box listing our server 10
  • 71. The complete details of line item 1 is the left-hand screenshot, notice I have a transaction type of 100 (external asset acquisition) as the next line item and we have, when you enter we filling the line item 2 details (right-hand screenshot top section) Again as in accounts payable/receivable we can simulate the posting to check that everything is correct before we post, the left-hand screenshot is the simulated and the right-hand screenshot is the simulated G/L Once you are happy then post the document and a confirmation will be returned at the bottom of the screen detailing the document number So let’s see what this has been done to our asset master record, the first time an acquisition is posted the system automatically writes the following information  date on which the asset was capitalized (reference date)  initial acquisition date (reference date)  acquisition year and period (posting date)
  • 72. The system derives the ordinary depreciation start date from the reference date of the acquisition posting in connection with the defined period control method (depreciation key) and then writes this information to the depreciation areas of the asset mater record. These dates are used to determine the planned annual depreciation and planned interest. We can see that a document type KR was created in the subledger vendors account (PVALLE) The document entry is as per the simulated test we performed earlier Now let’s have a look at the asset through the asset explorer using transaction AW01N, here we can see the rate of depreciation, immediately we can see the asset has depreciated by $500.00 and the net book value is now $4500.00 If you use the comparisons tab we can see the rate of depreciation over the coming years, this is a simple straight line depreciation over 5 years. The asset has a value of $5,000.00 and we have a ordinary depreciation of $500.00 this year, the calculation is based on a useful life of 5 years, annual depreciation is 20% that is $1000.00 per year as we are half way through the year it means $500.00 for 2013. You can then see the calculations from the remaining years.
  • 73. You can also use the different depreciation area buttons to compare the rate of depreciation by different depreciation areas, You can use the below transactions codes for the remain methods TCODE: ABZON In the FI-AA component without integrated accounts payable accounting and without a purchasing order reference TCODE: ME21 or ME21N In the MM module (Material Management) with integrated accounts payable accounting and a purchase order reference. Depreciation Depreciation is used to describe the wear and tear of any complex fixed asset in a balance sheet, property and land is an exception because it is not subject to wear and tear. There are two types of depreciation  Ordinary depreciation - is a periodic scheduled recurring loss in value  Unplanned depreciation - is based on extraordinary circumstances (flood, fire, etc) Lets looks at unplanned depreciation, you can use transaction code ABAA or the SAP easy access menu
  • 74. We adjust the server that we entered above in the same acquisition year, we select the server, posting period and the transaction type (650 unplanned depreciation on new acquisition, use 640 for the previous year and 660 for the following year), You can then enter the unplanned depreciation amount Once you press enter or save you run through each of the various screens with each different valuation approaches for depreciation The system will then confirm the posting We can now go back and look at the asset (using transaction code AW01) and see the unplanned depreciation, the system only posts to the sub ledger when a periodic depreciation posting run is performed. You can see our 750.00 unplanned depreciation in the left-hand screenshot, if you select the posted values tab you can see how the unplanned depreciation is split through the year, in our case 125.00 per month.
  • 75. Asset Retirement A non-revenue asset retirement is the same as scrapping, ideally you would like revenue generated from the sale of an asset to exceed its book value, this would be known as a gain, however if the sale value is less than the net book value this is known as a loss, there are three ways to retire an asset  With or without revenue  With or without a customer (I will explain this one)  As a complete or partial retirement We will only look at asset retirement with revenue and a customer as the others are very similar anyway, basically we are selling the asset to a customer, the system automatically calculates the loss and adjusts the corresponding asset balance sheet and proportional accumulated depreciation. The asset value date and the period control method of the depreciation key are used to determine the asset value period of the asset retirement. The proportional accumulated depreciation calculated as a result of the retirement is withdrawn for the specific period. Therefore a gain or loss is the balance of the asset retirement amount, the accumulated depreciation amount and the revenue obtained from the customer for the asset, for example Asset balance 200,000 Depreciation 70,000 Revenue 110,000 Loss 20,000 You can use the SAP easy access menu or transaction code F-92, The initial is similar to the other posting we have seen before, we enter the header data (top left-hand screenshot) and the first line item details (bottom left-hand screenshot) then enter the first item details (top of right-hand screenshot) and then the second item details (bottom right-hand screenshot)
  • 76. Then enter the second line items details, notice the asset retirement checkbox When you enter you will be requested for the asset, here we will in the details below, don't forget to tick the complete retirement checkbox Again like before we can perform a check and a G/L simulate Once posted we can then look at the asset (transaction code AW01), notice the sale of this transaction, we can see that we had a 2834.91 loss on the asset.
  • 77. If we look at the master data of the asset (transaction code AS03) we can see that it has been retired, Now I had a few issues when posting the above document, the first is regarding negative and positive values, these parameters are set in transaction code OABN (left-hand screenshot) and transaction code OADB (right-hand screenshot), change where needed, I discuss these control parameter in my asset valuation section in the FI setup and configuration section. Last I had a problem posting to an affiliated company for a specific transaction type, transaction code AO74 can help here Asset Transfer The FI-AA component distinguishes between intracompany-code transactions (transfers) and transactions between different company codes (asset transfers), there are a number of possible reasons for a transfer  A master records was created in or posted to the wrong asset class  There has been a change of location and you need to change non-modifiable organizational allocations in the master record  You want to split up an asset  You want to settle an asset under construction
  • 78. If a new master record is created within the transfer transaction you can use the field transfer rules to determine which of the input fields are to be transferred from the source asset to the master record of the target asset. You can use the SAP easy access menu or use transaction codes ABUMN and ABT1N The initial screen (transaction data tab) the left-hand screenshot you enter the details of the existing asset and the dates of the transfer (used to calculate the net book value), you can supply some informational text, you can either transfer to an existing asset or a new asset, the additional details tab has the posting period, document type and any additional information that you may require, these enable you to control whether the transfer variant concerns an intracompany- code transfer or a cross-company-code asset transfer and how the asset values are transferred from the sending asset to the target asset. Because only 50% is to be posted in this example you must switch to the partial transfer tab, here you can enter a specific or percentage or quantity amount, because we created the asset in the current year we selected from curr-yr aquis (current year acquisitions) Again we can simulate the transfer before posting, notice the short text entries regarding the original asset 30001 and the new asset 300007 Inter-company transfers are the same except you enter a company code as per the screenshot below
  • 79. Evaluations There are many evaluations in SAP for assets, we will cover a few in this section and leave the rest for you to investigate, we will also cover a few of them in the closing operations section (asset history, lists of an inventory, evaluations that concern the depreciation posting run), the examples below are day-to-day activities of an fixed asset accountant but is only a fraction of the many possible available. We start with looking at the asset balance evaluation, you can use the SAP easy access menu or any of the transaction codes in the below screenshot, there are many ways to sort as you can see, each targeting a specific group (cost center manager, plant manager, etc) Let’s take a look at individual assets (by asset number), fill in the required filtering details, you even have the option to select different depreciation areas and change the sorting. The report then will return the filtered asset balances, remember these are all on the same balance sheet regarding the depreciation area 01, you can see the acquisition values, the accumulated depreciation and the net book value, if you see a book value of 0 then this asset has fully depreciated but are still available to the company.
  • 80. Next we will look at the directory of unposted assets, again the initial screen is used to perform some filtering, I will most it blank as I do not have many assets configured The report returns the assets that have not been capitalized, there could be a number of reasons for this but it’s good to have a list that can be used to investigate the assets. New G/L and FI-AA The new G/L is a new optional component however it does have many benefits, see new G/L section for more details, ledgers are now associated with the depreciation area for each accounting principle, this means that there is a new delta depreciation area in asset accounting. In the below example we can see that the asset were capitalized in the "fixture and fittings" asset class Account Description Debit Credit U.S. GAAP Local GAAP 21000 fixtures and fittings 20,000 0L L6 160000 payables 20,000 0L L6 The posting clearly shows a single posting document updating both ledgers, the acquisition was posted with the ledger field blank, now if we consider the different depreciation postings in accordance with local GAAP and U.S. GAAP the below table shows that the ledger approach in SAP general ledger works with identical accounts for different valuation approaches. Account Description Debit Credit U.S. GAAP Local GAAP 211100 Depreciation of tangible assets 5,000 0L No Posting 21010 Accumulated depreciation of fixtures and fittings 5,000 0L No Posting 211100 Depreciation of tangible assets 4,000 No Posting L6 21010 Accumulated depreciation of fixtures and fittings 4,000 No Posting L6 The need for an additional delta depreciation area becomes apparent when selling a complex fixed asset, for example the sales revenue value is 10,000 that is a loss of 5,000 in accordance with depreciation area 01 (U.S. GAAP) and a
  • 81. loss of 6,000 for depreciation area 60 (Local GAAP), account receivable postings are always permanently associated with depreciation area 01 for all accounting principles, this results in the below table Account Description Debit Credit U.S. GAAP Local GAAP 21010 Accumulated depreciation of fixtures and fittings 5,000 0L L6 825000 Clearing of asset retirement 10,000 0L L6 200000 Loss from asset retirement 5,000 0L L6 21000 fixtures and fittings 20,000 0L L6 This method updates a incomplete valuation approach in every non leading depreciation area even though there is another valuation for ledger L6, an additional depreciation area is required in asset accounting to correct this issue in the general ledger as part of periodic posting of balance sheet values. Account Description Debit Credit U.S. GAAP Local GAAP 21010 Accumulated depreciation of fixtures and fittings 1,000 No Posting L6 2000000 Loss from asset retirement 1,000 No Posting L6 In many countries a cash discount reduces the acquisition and production costs for a complex fixed asset, previously the entire invoice amount was activated during gross procedure in SAP, for example if a complex fixed asset costs 100,000 and the input tax was 10,000 the total payable is 110,000. For outgoing payments and cash discounts can only be posted in certain cases and in certain amounts, let’s say we give a 3% cash discount which reduces the payable by 3,300 to 106,700 the net price of the fixed asset by 3,000 and the input tax by 300, however in SAP the asset is still listed as 100,000 in asset accounting even though it should be 97,000 after the outgoing payment, the acquisition and production costs were not reduced until adjustments made at the end of the period, the program SAPF181 was used for this purpose. Thanks to document splitting the original document itself already contains the information about how amounts are to be proportionately deducted from the complex assets in the case of cash discount deductions. When the outgoing payment is posted the complex fixed asset in asset accounting is immediately reduced to 97,000. There is no need for a periodic activity in asset accounting, which reduces the effort at the end of the period. I will cover other asset accounting related information (for example depreciation run, etc) in the closing operations section. I have already uploaded Closing Operations User Guide please refer to that.
  • 82. Bank Accounting (User's Guide) We cover bank accounting in this section, which is the basis for representing central bank account tasks within an enterprise. We will include some examples regarding electronic bank statements, check deposit transaction, cash journal and bill of exchange management. I do have a whole section on bank accounting in my FI configuration and setup section; this covers the subject from a configuration point of view. In the newer releases (available from ERP 6.0 enhancement package 2) SAP has an important feature that enables enterprises to send payment media and receive bank statements, the entire process can be mapped within the SAP system. We will also discuss the Single Euro Payments Area (SEPA) and the evaluation options for liquidity management and the monitoring of outgoing checks. Bank accounting is a subarea of financial accounting, all business transactions concerning banking are entered and managed here, the main role is to process and document all payment transactions that is all cash inflows and outflows. A business can be doing well but has zero liquidity which in affect means it is insolvent, the bank accounting department must retain an overview of all incoming and outgoing payments at all times to ensure that the enterprise has liquid funds on an ongoing basis. The FI-BL module is not a sub ledger, information is stored in the general ledger and in the sub ledger's of accounts payable and accounts receivable. The FI-BL component (bank ledger) manages bank master data in a central SAP bank directory, both the enterprise's own house banks and the commercial banks of the vendors and customers are defined in the system (these are maintained in the master data), SEPA will alter some things here because it will replace the national special features of 33 countries with one uniform standard. FI-BL is also concerned with cash balance management for checks and bills of exchange, here incoming and outgoing payments are documented in electronic bank statements. Master Data The transactions on a bank account are mapped to a G/L account, we can use transaction code FIBHU, the screenshot on the left is the filter screen that allows you to select specific bank chains, the results screen displays the house banks, the account ID and the G/L bank accounts. Try to keep the number of house bank as low as possible this keeps maintenance and configuration simple. However one point to make that the enterprise should have a number of ways to get liquidity so make sure that there are a number of banks and ones that may not all merge into one bank, keep your options open when it comes to lines of credit. Now let’s discuss SAP internal bank directory, here we define information concerning the business partners bank in the master data, any information is checked against the internal SAP bank directory, this ensures that incorrect entries are kept to a minimum, for a program that transfers data directly into the SAP system we can use transaction code BAUP or use the SAP easy access menu The report reads a file in ASCII format and can convert the formats of the following countries, for any other country use the transaction code BIC that allows transfers from a BIC file.  Austria  Canada  Great Britain
  • 83.  South Africa  Denmark  Spain  Switzerland  Germany  Italy  USA To create a bank manually we can use transaction code FI01, the initial screen (left-hand screenshot) requests for the bank country and a bank key, the key is checked to conform with the country format, the bank details screen (middle screenshot) requests for the bank's location , swift code, once you saved the configuration SAP will confirm, see right- hand screenshot. Once the bank has been created it can be used as both a house bank and a bank for customers and vendors. The options of importing or manually maintaining bank master data as a house bank or as a bank for business partners in the bank directory are inextricably linked to SEPA, this is a significant change to the master data of payment transactions conducted in Euro's, we will discuss this in more detail next. SEPA Single European Payments Area (SEPA) affects Euro payment transactions in 33 countries, this new standard which has been introduced for all bank transfers as of 28/01/2008 will replace the national payment methods and payment media after a period of coexistence, the procedure for SEPA debit memos was adopted in 2009, the new XML payment formats are based on a common standard in accordance with ISO 20022. Using transaction code FK02, and using vendor10 we can see the bank key and the bank account, national bank numbers will be replaced with International Bank Account Number (IBAN), you can see the IBAN column in the screenshot below, if we double-click the IBAN button we can see the IBAN for this account
  • 84. The IBAN itself is made up of a country code, check digit, bank code and an account number, the system can generate this new information as well but it is also better to check with the bank as well. There may be times when the customer only knows the IBAN number and not their bank key or bank number, therefore master data such as the bank key and number may not be defined first in the SAP bank directory, to obtain an IBAN abbreviation when entering data you must maintain table TIBAN_WO_ACCNO using transaction code SM30 and selecting maintain, the setting in the right-hand screen enables you to maintain the IBAN of a business partner in the bank directory without having to enter the bank number. Now when you select the IBAN button without a bank number you will see the below screen Payment Transaction In bank accounting we must ensure smooth and efficient processing of payment transactions, and in addition to incoming payments which are usually processed in electronic bank statements. We start with the payment program for the house banks and the available amounts, using transaction code S_ALR_87001486 or the SAP easy access menu we can setup to pay invoices up to the amount configured
  • 85. You can see that company code DD11 has the below limits regarding the payment program. Incoming payments can be an automated or a manual process, bank account must find out which off settings items are suitable for the debit posting on the cash receipt account, this may concern several invoices whose absolute amount may also differ from the incoming payment amount. Let’s use transaction code F-28 to post an incoming payment from a customer manually (you can use transaction code FB70 to create a customer’s invoice). The initial screen is the header details, here I have entered the minimum, however notice the open item selection and particular the account section, here you see that we will use this payment against the DDCUS01customer, when complete select the process open items button to obtain a list of the open items for the customer The next screen returns all the open items of the customer, here we can match the payment with an invoice, this may not always be the case, the payment may be more or less covering a number of invoices. Notice in the red box that some items are in black and one is in blue, if you double click on a item you can make it available or unavailable to the payment, in my case I have selected just one item for payment document number 4000000005, also notice that the not assigned amount is zero. Again we can simulate the transaction
  • 86. Once happy you can post the document and SAP will confirm if it was successful Now we can use transaction code FBL5N to check the previously open item, and as you can see the item is now cleared Now when using the automated method the system searches the customer account, if there is a match then this invoice will be cleared however these ideal scenarios do not always occur in reality, instead it is necessary to distinguish between the following scenarios  Underpayment within the tolerance - as you know you can define tolerance groups, the group is assigned to each individual customer and the SAP system automatically posts minor differences to a predefined account.  Underpayment above the tolerance and creation of a partial payment - in the clearing transaction an accounting clerk can decide how to deal with the payment differences, partial payment is one option, which involves linking incoming payments with invoices, only one assignment take place and all items remain open.  Underpayment above the tolerance and creation of a residual item - unlike partial payment, the original items are cleared for residual items, another difference is that a proportional cash discount is granted for this procedure.  Payment on account - the customer has been found and you are completely free to choose the invoices that are to be cleared with the incoming payment (we see this example above), you can also use this for open item management. Outgoing payments again can automated or be a manual process, let’s see an example of a payment by check using transaction code F-58 (you can create a vendor invoice using transaction code FB60), the initial screen is the document header information, here you select the company code, the payment method, the house bank and a check lot number, I have already discussed setting up bank accounting in my FI setup and configuration section,
  • 87. The next screen continues with the header data, which also includes the amount and payee, when complete select the process open items button to obtain a list of open items for the vendor The next screen contains the list of open items, double-click the items that you want to include for payment, these should be highlighted in blue, in this case I just have one item selected Once you post you are taken to the check screen (left-hand screenshot) double-click on the check and then you are taken to the list of spool screen (right-hand screenshot), double-click the icon in the type column and you will see the check The check the information does contains the payment and the correct details Using transaction code FBL1N we can see that the document has cleared
  • 88. You can also use transaction code FCH7 to reprint a check or transaction code FBZ4 payment with printout, you can also use transaction code FHCU, to update the check number in a payment document, you can choose what field you want the cheque number to appear in, see below screenshot, this information will override any assignments (possible sort key) that you have made in the field of your choice. As an alternative to payments by check you can generate a bank transfer for an adhoc payment using transaction code FIBLFFP, this scenario does not need an invoice on the vendor account for clearing purposes There are a number of check transaction code which can be seen below, a useful transaction code is FCHT which can be used to reassign checks to documents.
  • 89. Processing Bank Statements There will be many bank statements which need to be overviewed, the bank statements of house banks provide not only the bank account department with valuable information about liquid funds available but especially the accounts receivable accounting departments which is also involved. There is a close relationship between bank account department and the accounts receivable department. Bank information generally imported in electronic form using transaction FF_5, you can choose from many different formats, I have an example of a MT940 format in the right-hand screenshot. Notice the the do not post option, this is ideal if you just want to test and not post The diagram below outlines a brief scenario, if an enterprise receives money from a customer for a receivable, this results in two posting documents, debit the bank and credit the cash receipt and debit the cash receipt and credit the customer, you can always implement the first posting transaction directly, it provides the bank accounting department with more information about the house banks account balance at present. The second posting (to the customer) can be more difficult, the system automatically makes the posting depending on whether an open item can be found and cleared, when post processing bank statements, accounts receivable accountants try to determine the customer and item(s) for which a cash receipt was intended. The post processing screen is available using transaction code FEBA_BANK_STATEMENT, fill in the filter screen then select the clock with the green tick, I am using company code 3000 for this example
  • 90. The left-hand screenshot details the bank statement numbers, you can drill down by double-clicking the document number in the red box, the output what you see in the right-hand screenshot. Keep an eye on the red icons these indicate problems with the posting, if you open these up to will not see a posting in neither posting area 1 or 2. If you select a sale amount (either green or red) and select save the program then navigates to the posting screen, the below example was unable to post due to a posting period not being open You can use transaction code SE38 and program RFEBKA96 to delete a bank statement/s, use transaction code FEBA_BANK_STATEMENT to obtain the statement number (ID) and then enter the details as per the below screenshot, you can also use this for deleting all bank statements if you need to.
  • 91. Cash Journal Some business transactions directly use cash, for example if a vendor has delivered some goods and wants immediate payment before handing them over to you or if a customer primarily uses cash to pay his/her receivables. These transactions are generally small amounts for example office supplies, which are not invoiced and instead paid by petty cash, which means these need to be recorded and included into the balance sheet. This is where the cash journal comes in, first you may need to create a cash journal using the steps below  Create petty cash G/L account  Create the cash journal Both can be obtained by using the IMG as seen below, you can also define number ranges, amount limits, document types, etc The left-hand screenshot is the create G/L account for cash journal and the right-hand screenshot is the set up cash journal To use the cash journal we can use transaction code FBCJ, the first thing to do is select the right cash journal, there are two buttons to do this (see red boxes), here you can see that I have only one cash journal setup for company code DD11, a cash journal is an example of small sub ledger accounting, you can choose to record detailed information in the sub ledger only and also in the general ledger. You could have multiple cash journals point to one G/L account to keep things simple however in this case only the sub ledger accounting provides information about the current financial status of each cash journal. For our purposes this cash journal is connected to G/L account 100011 as per the configuration screenshot above.
  • 92. You can setup business transactions (see IMG above), you can see (left-hand screenshot) that I have created a number of business transactions for company code DD11 (copied existing ones), you can then select these business transaction from the cash journal. Business transactions help to establish a connection between simple data entries and completed posting records. If you notice you can see three tabs, cash payments, cash receipts and check receipts, we will start with cash receipts, you can see that I have made several entries already, an opening balance of 5,000.00 and a cash payment from a customer of 500.00, the screen is similar to the accounts payable and receivable screens so I won't go in to detail here. Notice the business transaction that we configured above. You can even reverse documents as seen in the below screenshot. Again we can see the incoming check receipts And lastly the cash payments to our customers.
  • 93. If you notice the cash journal has a summary section detailing the number of record entries in each tab, it also displays their balances. Just like account payable and accounts receivable the G/L account does not get updated until you post the entry, which means you can save a entry in the cash journal without having to post it to the G/L account. Also we can reverse entries as well, if you highlight a transaction and then select the icon in the button left-hand corner (the icon with a red line), a dialog box will be displayed requesting if you want to reverse the entry. You have to supply a reversal reason and posting date. You can then see the original entry and the reversal document, if you hoover the mouse over the document status column you can see the entry reversed and the entry is a reversal document, Check Deposit Transaction Checks need to be managed efficiently to transfer them to the house bank as quickly as possible, the goal is to reduce any loss on interest, checks are generally gathered centrally in a check deposit list that is not immediately posted, changes can be made any time before the posting begins, as of this time both the checks and the central check deposit list are transferred to the house bank both the bank accounting and receivable accounting department have a major interest in the check information. We have already discussed lockbox in our bank accounting in the FI setup and configuration section which is used in the US. We can use transaction code FF68 to manually deposit checks, the initial screen request the bank key, bank account, currency and control parameters,
  • 94. The next screen you enter the items, you can get an overview of this screen after you have finished When you do post you get a detailed list of the postings, here we can see the account number and the batch numbers (CITI-1400, /CITI-1400) The system should be able to create one G/L account posting without errors. The second account assignment depends on the quality of the information on the check. It must contain the customer and the open items, we can use transaction code SM35 to have a overview of the batch sessions created  /CITI-1400 - debit the check deposit account and credit the clearing account  CITI-1400 - debit the clearing account and credit the customer We select /CITI-1400 and press F8 the contents are then displayed, we can see the header information and the start of the first document item. The G/L account 113171 is used as a clearing account, you then press enter and then you are taken to the screen for open items, then press enter again to change the selection conditions Evaluations There are a number of evaluations for bank accounting, I will only show you a few examples and this is only a fraction of the many possibilities available. The bank accounting department can use the liquidity forecast evaluation to obtain a central overview of the enterprises current cash position. It provides the status on the bank account and all incoming and outgoing future payments, If the MM and SD modules are used to manage purchase orders and sales orders, this
  • 95. content will be incorporated as future planned payments and receipts. You can either use transaction code FF7B or the SAP easy access menu The initial screen is a filter screen, here you can narrow specific liquidity, in my case I have entered the minimum required, I suggest that you play around with the increment and output control sections to obtain your requirements. When you run the report a summary results screen is displayed, now you can start to drill down into the report to find the specifics that made up the value The next is the result of me double-clicking the USD line in the above Again we can drill more into the report, here I double-clicked on the BANKEN line
  • 96. You can also double-click on an amount box, we will display the line items that make up the amount There is a report for checks (check register), you can use transaction code FCHN to list outgoing and incoming checks and also payroll checks, again the initial screen is a filter screen The results are displayed and we can see that two checks are to be paid to the customer Paul Valle. You can also select the report to detail the line items as per the below screenshot, you can also double-click on a check to drill down to the original document and the original invoice.
  • 97. Closing Operations – User Guide In this last section on the SAP user guide we look at the closing operations, here we will look at reducing the manual effort involved in individual closings. All closing operations revolve around the financial statement, which consists of the balance sheet and profit and loss statement, the financial statement compares resources (assets) with claims (liabilities and owners equity), liabilities and owners equity (the debit side of the balance sheet) provides information about the enterprises sources of funds, whereas assets (the credit side of the balance sheet) provides information about the disposition of funds. The balance sheet can be broken down as below We can breakdown each further each displaying the possible G/L accounts, however every company is different. In addition to the external year-end closing (i.e. the annual balance sheet and profit and loss statement), internal documentation, planning and reconciliation calculations are often prepared. These are only used internally within the enterprise and are particularly flexible because they are not subject to legal restrictions. Closings can be prepared for various periods, for example for a month, a quarter or a year (year-end closings), they serve the following purposes  Calculate tax liability  Determine investment potential  Calculate sale value Here are some examples of what may need to be performed regarding closing, I will be covering most of these in this section Day-end Closing  update exchange rates, either manually or through an interface via Reuters or any other information system  Review gaps in document number assignments, which can be done via a report  Display the compact document journal, this then shows transactions and their offsets which allows you to validate the accuracy of these transactions Month-end Closing  open and closing posting periods  enter recurring entries  post recurring entries  run batch input session  automatic clearing of GR/IR account special process  automatic/manual clearing  post adjustment entries  foreign currency evaluation  post tax payable  record of sales and use tax report  comparative analysis  close previous accounting period  comparison documents and transaction figures  financial statement Year-end Closing  create factory calendar for new year  carry forward AP/AR balances and carry forward GL balances  re-grouping receivables and payables  balance confirmation receivable and balance confirmation payable  final close and release financial reporting  close previous accounting period  display document journal  print 1099 MISC forms
  • 98. I have a period-end master checklist which you can obtain the transaction codes and whether the task is daily, monthly or yearly, however you may have your own procedures in place. A fast close is an accelerated closing of the enterprise's books on a key date. Events that become known after the year- end closing cannot be incorporated. All enterprises have their own closing procedure document to help complete the closing as quickly and efficiently as possible. I will at the end of this section show you one of the many closing documents that are out on the web, feel to use and adapt this as you wish. I will be covering the following closing procedures in this section, it does not cover everything but it is a good start  Management of parked documents  Maintenance of the goods receipt and invoice receipt account  Posting of provisions  Accrual and deferral postings  Settlement of assets under construction (AuC)  Asset inventory  Depreciation posting run  Individual and flat-rate value adjustments  Foreign currency valuation  Interest calculation  Manual and technical reconciliation  Intercompany reconciliation  Reclassification  Balance confirmation  Reconciliation  Advanced return of tax on sales and purchases  Period control  Control and monitoring of the closing process  Balance carry forward If you use parallel accounting principles you can speed up the closing process, if you do programs such as the depreciation posting run for complex fixed assets, the foreign currency valuation of your receivables, flat-rate value adjustment and reclassification are called numerous times and help you calculate or post valuations automatically, for example for local law, IFRS and US-GAAP. You can see the SAP general ledger closing transactions below  check/count - refers to the process of comparing ledgers to ensure that they reconcile with each other, the program called reconciliation of receivables/payables in group cross-system helps you to reconcile the customer documents and vendor documents of the affiliated companies in the group. It reads the open items of selected companies on the specified key data and helps you identify documents causing discrepancies  valuate - you must perform a foreign currency valuation before you can generate your financial statements, this valuation allows you to revalue foreign currency balance sheet accounts. It also allows you to revalue the balances of the general ledger accounts that are not managed on an open item basis but are valuated in a foreign currency and have open items that were posted in a foreign currency  reclassify - allows you to reclassify GR/IR balances based on predefined rules  rollup - allows you to summarize the data from one or multiple ledgers to one rollup ledger and helps you eliminate the dimensions you do not need for reporting  allocation - allows you to distribute and perform assessments of amounts and quantities from sender objects to receiver objects
  • 99.  document - allows you to generate audit trails for documents and is typically used by auditors to trace origins of account balances  report - allows you to generate financial statements, account balances and item-level details, along with the various tax reports (the post tax payable report and the transferring deferred tax report)  carry forward - this transaction is done at the end of the year and allows you to move the open balance sheet account balances to new fiscal years, including for sub ledger’s like accounts payable, accounts receivable and asset accounting  opening /closing - this is applicable in specific countries (Italy, Slovakia, Turkey, Columbia, Romania and Portugal), where you need to generate opening and closing entries Account Determination Analysis Not strictly a closing operation but there are times when you want to find out if accounts have been assigned, there is now a Account Detective Report which can help, the new report lists all the accounts in a company code or chart of accounts, along with their master data settings, the report gives you the option of finding out where they have been assigned, we will transaction code S_ALR_87101048, the filter screen (left-hand screenshot) you can narrow down your search, the right-hand screenshot is the results, if you notice you can see that account 1000 is assigned to tables T095 and T095B (these are the tables for asset account determination) you may find that is it also assigned to table CSKB (cost elements table). If you double-click on the tables you can then view the table entries, which means you can obtain the account assignment details in the below right-hand screenshot, in some cases you can use the transaction codes OMSK (valuation class) and transaction code OBYC (general modification key) to see in more detail the account assignment fields. No Activity Accounts There may be an instance where you want to list all accounts that have no activity, it might even block them to stop accidental postings to them, or you may want to archive them. You can use transaction S_ALR_87010043(you can use S_ALR_87012186 for customers) and select the accounts with no purchases checkbox, the results back should display all the accounts with no activity. Management of Parked Documents You would save (park) documents for content checks to confirm account assignment by more qualified employees, also SAP uses authorization concept to support the posting function up to a defined amount and then switches to document parking as of this limit, what I am saying is that the account clerk is not authorized to post documents over a certain amount and can only save (park) these document instead, the content is then checked and the document is posted. Regardless on your enterprises situation it is advisable to check the list of parked documents at the end of the posting period, this is to determine whether these documents belong to the current period for the purpose of calculating profits for the valid accounting period. If the period is technically closed the posting date that has already been entered in the parked document usually has to be changed manually, to view the parked documents we can use transaction code FBV0, on the initial screen you select on the document list button, then a filter screen appears, here you can narrow down your searches
  • 100. When run, a display appears with all the parked documents, in my case only one, you can see if the document has been blocked or being released by looking at the status or released by columns, You can double-click on the document and it will take you directly to the screen for editing the parked document, from here you can change or post the document. Remember a document cannot be included in the balance sheet evaluations until it has been posted. If you have many parked documents this can have a impact on providing an accurate representation of an enterprises assets, financial situation and performance, try and close as many parked documents as you can. Automatic Maintenance of the GR/IR account At the end of the posting period the open transactions in the goods receipt/invoice receipt account must be processed correctly for the financial statement. We can distinguish between three scenarios 1. Both goods and receipts exist, both items in the GR/IR clearing account balance out to zero and can be cleared 2. The vendor has delivered the goods but has not submitted the invoice, this incomplete transaction leads to an increase in the current assets on the credit side of the balance sheet without showing a payable on the debit side. 3. Another possibility scenario involves the reverse of this situation, in the case the vendor has submitted the invoice but the goods have not yet been received, this results in a payable on the debit side, without a corresponding disposition of funds on the credit side. The GR/IR account, the line item must be enabled to make sure that each transaction can be evaluated, you can use open item management which means that documents need to be cleared which makes this easier to detect incomplete transactions (see screenshot below). The sort key is essential for clearing, the entry 014 (purchase order) copies the purchase order number and item identified in the MM module to the assignment sort field, this serves as a criterion for
  • 101. automatic balancing of goods receipt items and invoice receipt items. Below is G/L account 191100 is a correctly configured GR/IR account Manual clearing is generally avoided owing to the number of items involved, we can use the automatic clearing function using transaction code F.13, you can select the test run checkbox to check before you actually clear the items, when you run the automatic clearing a log appears detailing the documents that where cleared. The relevant line items in the GR/IR account must be analyzed for all others business transactions, which are still incomplete. A goods receipt for no invoice exists (scenario 2) must be shown as a debit item (delivered but no invoice) on the balance sheet. An invoice receipt for which no goods receipt exists (scenario 3) must be shown as a credit item (invoiced but not delivered) on the balance sheet. The posting procedure is shown below Because the GR/IR clearing account is not to be posted to directly in the key date valuation, a GR/IR adjustment account is required, the GR/IR and the adjustment account are shown in the same balance sheet item in the notes to the consolidated financial statements. This practical posting procedure results in a zero-balance line item. In the above example both the debit and credit amounts equal 100. Incomplete transactions can be reclassified automatically for the balance sheet using transaction code F.19, this time I will use company code 1000, I have unselected the create postings so that I can check what is happening before we post (kind of test run), we would save the postings in the RFWERE00 batch input session, when the report is run you get the GR/IR analysis log, based on open items the program attempts to group the documents so that complete transactions can be easily identified.
  • 102. If you select the postings in the log you get an overview of reclassifications as shown below You can view the reclassification saved in the session that has been just generated. If the GR/IR account master data is configured correctly, the line items, OI management and sort keys the system is capable not only of clearing complete business transactions automatically but also of correctly mapping incomplete transactions on the debit or credit side of the financial statement using GR/IR clearing postings. You can also use transaction code MR11 which is used for maintaince, this transaction clears quantity discrepancies between the goods and receipt and its related invoice. These quantity variances remain as balances in monetary value in the GR/IR account. When configuring the transaction you can choose a tolerance level (which is the maximum amount of a variance that can be written off) that the quantity variance should be equal to less than for the variance to be cleared. The reason for this is that if the goods receipt has not been invoiced because the vendor has not yet sent the invoice, then you may not want to clear this amount, as it will be cleared at some point in the future when the invoice receipt is posted. In the initial screen you can specify the clearing section which is about the third of the way down, you should run this transaction at period end for purchase orders that are at least three months old. That way if you do clear a goods receipt amount whose invoice was never posted, it is probably likely that the vendor as paid in some manual form. When documents are posted they will create open items in the GR/IR that are the equal but opposite value to the discrepancies that are written off. The assignment field of these documents will contain the purchase order and line item number, so next time you run the automatic clearing transaction, these items should be matched and cleared.
  • 103. Transfer of Salaries and Wages The HR department posts salaries and wages at the end of the month, this can be done via an interface using non-SAP software, you can also transfer payroll results to FI and CO using the SAP ERP Human Capital Management (HCM), because the sensitive information the SAP system uses extensive authorizations to protect this data. Transaction code FB03 can be used to find the documents related to HR payroll, using HRPAY in the reference transaction we can find the payroll documents (right-hand screenshot) You can see all the G/L accounts that have been posted too plus the cost center, profit center, business area. Normally you will not allowed from this point unless you are authorized as it is possible to find what an employee earns, We double-click on the one of the documents to view the document details, we first highlight the first entry Then we select environment -> document environment -> original document The below screen will then appear, if we double-click on the salary item we can see who the payments are for
  • 104. Here we can see the salary payments to employees with numbers 1721 and 1722, using the HR component we could find out who these employees are If you double-click on one of the above lines you can see additional details of the portion of the gross amount that is payable, you also can see income tax that is to be paid. Provisions We will start with distinguishing between the various types of provisions and probabilities of occurrence, because of the type of provision involved, provisions for foreseeable losses owning to unsecured payables, threatened losses from waving business or warranties that are not legally enforceable must be created on the basis of local law and international accounting principles. Provisions for operating expenses on the other hand can only be created subject to certain conditions based on international financial reporting standards (IFRS) or United States Generally Accepted Accounting Principles (GAAP).Valuation variances arise in parallel accounting owing to different provisions types and probabilities. If a provision for foreseeable losses such as a warranty case is regarded as probable it is included in the financial statement in accordance with US-GAAP, according to IFRS accounting standard an event is regarded as probable if is probability is categorized as greater than 50%. If its probability is between 30% and 70% a provision ban applies under US-GAAP because the event is then categorized as reasonably probable. Owing to the nature of provision postings, automatic valuation procedures cannot be used, the system has virtually on points of reference for performing a mathematical calculation in this context. In practice calculations are usually made outside the SAP system (for example excel) and then assigned manually as a G/L posting at the end of the period. We will use transaction code F-02, we can fill in the header details however we will select the acct model button, if we drill down we can see all the account assignment models we will use GL-SL03, we can also use the accounting assignment models for parallel accounting, with parallel accounting the accounts approach must evaluate data based on each of the accounting principles.
  • 105. The account assignment model proposes all of the relevant accounts for both local law (8xxxxxx) and IFRS (9xxxxxx), account assignment models help prevent such errors of omission in data entry. In the below screenshot we can see a provision of 30,000 EUR is created for local law and 20,000 EUR created in accordance with IFRS principles. Because this represents a allocation to provisions an additional account assignment is made for the balance sheet account with transaction type 520, any unused lines are removed then you hit enter (you may get a warning message). With account numbers and different financial statement versions allow you to express items differently in local and IFRS financial statements, you can transaction code SA38 or select system -> services -> reporting, we will use report RFBILA00 which can filter on the chart of accounts (or RFBILA10 this uses G/L and company code) We will use company code DD11 and select the financial statement version CAUS (you may have your own financial statement versions), as I have only one accounting year we cannot compare accounting years
  • 106. The provisions can be finding in the liabilities in the financial statement, adjustments for an IFRS financial statement must not affect this and must therefore be expressed below the balance sheet items in the other item section. A provision history sheet is not currently provided in the SAP standard system, we can use transaction code GRR3 display report (or GGR2 change report) to provide an overview of the report painter reports, in folder ZF1 there is provided a basis for creating your own provision history sheet as seen in the screenshot below We then are taken to a filter screen
  • 107. The results of the report are then displayed, you should then see the postings made earlier. Periodic Accruals and Deferrals The difference between accruals and deferrals are as below  with an accrual the current service transaction is followed by a subsequent payment transaction, for example rent that has to be paid at a later date for example at the end of the quarter ("other payables")  the term deferrals on the other hand is used if the current payment transaction is followed by a subsequent service transaction, for example insurance coverage for a year is provided after an insurance premium is paid ("other receivables") We can map these transaction in two ways  with a recurring entry document  with the accrual engine Using the recurring entry approach the posting key, account and amounts are unchained, the posting documents are then generated automatically on a regular basis, however the posting is not immediate but instead a batch input session is generated which has to be processed subsequently. The Accrual Engine is available in SAP ERP and has better flexibility than recurring entry documents for accrual and deferral postings, with the accrual engine which are not defined on the basis of set values are calculated automatically. If you adjust the values in the original documents adjustments are made automatically for all periods, you can even simulate future accruals and deferrals. The new accrual engine which has a extensive information system, offers an alternative to conventional recurring entries. We will start with the recurring entry method, first we will create a recurring entry document as a template, you must remember that a recurring entry document is not an accounting document and it therefore does not change the account balance. You can use transaction code FBD1 or the easy SAP access menu This is similar to the previous document entries we have encountered before except that we have details on the recurring run dates, fill in the recurring entry run information  First run on - the earliest date on which an actual document is to be generated  Last run on - the latest date on which an actual document is to be generated  Interval in months/run date - if posting is to be executed periodically the dates for the generation of actual documents are defined in these fields  Run schedule - if postings is to be executed at regular intervals rather than on specific dates, a run schedule must be defined in customizing, this schedule specifies the individual dates for postings.
  • 108. Next we fill line item one details and enter the next line details, notice the "=rent" in the text field, this is a dynamic field and it will be replaced with 08/2013, again on other runs the date will be changed to reflect the month and year. Lastly we enter item line two details and then save. Next we can list all the recurring entry documents either using transaction code F.15 or the SAP easy access menu We can see the recurring document entry we made plus an already existing recurring document template,
  • 109. You can execute a recurring document by using transaction code F.14, we can filter the recurring documents to be run, by specifying a calculation period you let the system know which recurring documents are to be included, if the date of the next posting run saved in the recurring entry document matches the calculation date entered or falls within the date range specified the program places the data for the postings in the specified batch input session. A single accounting document is created for each recurring entry document in each program run. Therefore a very long calculation period does not result in the generation of a large number of accounting documents. We select the hold processed session to prevent the batch input session from being reorganized immediately. This will generate a batch session, we now need to execute the session, by selecting system -> services -> batch input - > sessions We can then see the batch session, we select the RENT line and press F8 to execute, we get the dialog box on the right- hand screenshot, we select to run in the foreground You will then be given the chance to check the document before posting, notice the dynamic field has now been replaced with the date
  • 110. Because we selected to hold the processed session we can then see it in the processed tab, if we double-click on the RENT line and examine the log we can see the postings The log details that two postings were completed (I run it twice), We can look at the document using transaction code FB03, where we can confirm the posting The accrual engine is a general tool for calculating and generating periodic accrual and deferral postings, each of its application components is based on specific accrual and deferral scenarios, examples include  Manual accruals in financial accounting  Provisions relating to employee stock options  Leasing accounting  Intellectual property management There is no customer development in the accrual engine as SAP delivers everything you need, the best way to learn the accrual engine is the way of an example, first we will create an accrual object, we will use the SAP easy access menu
  • 111. We create insurance accrual object as below, we state a category, add some descriptive text and identify the person responsible, we then select the item data and create the object, we will be using accounting principle 90 as company code DD11 uses this principle, we have also specified an accrual type called INSURA, you can also assign additional parameters like cost code in the acct assgts tab. Again you can check and simulate the above, when you save you get the dialog box below (left-hand screenshot), you can specify a key date of your choice for the simulation, once you save you get the right-hand screenshot detailing the document posted. The screenshot show what the accrual engine would do as from the 01.08.2013 to calculate the accrual for the amount of 1,200 (see calculated accruals tab), as you can see for the next 5 months 240.00 will be posted per month. However in the postings tab only a single annual amount of the insurance premium that has been posted is shown, the list of the actual postings grows each month,
  • 112. You can double-click on the posting to display the document, account 99000 (accrued income/deferred expenses) contains the total amount which is reduce by $240 each month, for this to be posted automatically you need to schedule a program for periodic postings as a background job. We will use start periodic accrual run from the SAP easy access menu We start by filling in a filter screen, here we enter the company code and the key date for accruals as a minimum, the program will then search for any accruals that need to be posted, notice that I have selected the test run checkbox to confirm possible accruals. The results indicate a number of accruals (I have already created some additional ones), but you notice the one we have just created, the report states that this was a test run and no postings were generated, you can double-click on any line which will take you to the accrual edit screen above. When you do post you will get the same report below, however we can see that this was an actual run and 5 postings were completed.
  • 113. You now have two choices either recurring entry postings or using the accrual engine, if you have very few recurring documents then use the recurring document method, but if you have large numbers of deferral postings the accrual engine would be more benefit to you but it does require more configuring. Also if you come across accrual number range problems use the below transaction codes  ACEPS_AWREF  ACEPS_ACEDOCNR Other useful transaction codes are Enter accrual/deferral document FBS1 Reverse accrual/deferral document F.81 Asset Accounting Lots of closing processes relate to the FI-AA (asset accounting) subledger, we will cover the following  Assets under Construction (AuC)  Asset inventory  Depreciation posting run  Asset history sheet As we have discussed already complex fixed assets are mapped in asset accounting, depreciation reduces acquisition costs owing to wear and tear on the asset and its expected obsolescence (and cost of investing in a replacement). Assets under Construction (AuC) are incomplete assets that are still in the process of being completed when the financial statement is prepared. Only when completed are they are the disposal of the enterprise and can be depreciated. During the closing process AuC's are normally checked and their status changed if necessary, let’s look at an example We start by creating a AuC, we select class 4000 assets under construction, this is similar to creating a normal asset We enter the asset details (left-hand screenshot) and check the depreciation areas (right-hand screenshot)
  • 114. Then we use transaction code F-90 to create a acquisition for purchase with vendor, again this all very similar to a normal asset, the net amount is 50,000 (the middle screenshot was changed to 50,000 as this was a limit), we use posting key 70 and transaction type 100 (acquisition) in the master record, note that the value date or capitalization date is not required which is not the normal in asset accounting. We can check the document before posting, the account determination for AuC 4000 for acquisition postings refers to G/L account 32000, the total amount of 50,000 would also appear in that account on the balance sheet date, provided that the status of the AuC did not change. We now presume that a check run was performed at the end of the period that determined that the building can be used as of August, as a result the status and value must be changed, using the SAP easy access menu or transaction code AIAB, we can define distribution rules for the subsequent settlement of the asset in our example A line item exists for AuC 400001 (building) in the asset class 4000, you can at this point (although not essential) to define a separate settlement rule for each transaction. It may be useful to differentiate between settlement rules at the document level for example if the assets are intangible assets such as software for which only certain internal activities
  • 115. can be capitalized. You use the enter button to create settlement rules, in the right-hand screenshot you can see the AuC is to be 100% capitalized, asset 400000 (building 1) receives 70% and asset 400001 (building 2) receives 30%, this has the same effect by using a ratio of 7:3, when you save the icon in the left-hand screenshot it will turn green. Now we need to settle to close the operations, we again use either the SAP easy access menu or transaction AIBU, fill in the initial screen, you can perform a test run and a simulation (right-hand screenshot), at 19th august the AuC is credited and two new assets are debited at the same time. An amount of zero balance on the key date in the AuC balance sheet item and depreciation now starts for the two new assets, You can use the asset explorer to see inter-company asset transfers, here you can see the asset being retired and a new asset being created. Asset Inventory The asset inventory is used to see if assets are still at the disposal of the enterprise, this check determines if changes are need to made to cost centers, business areas or locations, in the master data fields, if fixed asset are no longer exist owing to theft an extraordinary asset retirement without revenue must be posted. Here you can find various reports, there are various ways to manage assets
  • 116.  Each asset is assigned its own asset number - this ensures transparency and trace ability, it is time consuming because a separate master record has to be created and maintained for each asset  Collective management - this approach all assets are managed in a single master record, the challenge is to ensure that each asset is uniquely identifiable An example of collective management would be if we have 20 computers that are allocated to a cost manager, this all could be managed under one asset, however it becomes a problem when you want use some of the PC's in other areas. To speed up the asset input process you can have barcodes that are attached to the assets and then use it to identify each asset, this helps in auditing equipment owned by the enterprise, a hand scanner can be used to make the whole process very quick, the user reads the barcode identifies the asset and confirm the location and other details in the system. The other possible solution is to use employee self service, this is where a employee receives an email to a portal that allows them to enter the details of any equipment that they are using. Asset Reconciliation There may be times when the asset sub ledger is different from the general ledger balance, you will need to know if there are any imbalances between them, using transaction code ABST2 (see below screenshot) , the program reads all the transactions in the asset value fields table ANLC for the current fiscal year, summarizes the values per general ledger account and writes them to the totals table EWUFIAASUM, you need to make sure that the current fiscal year is open (transaction code AJAB) and that the fiscal year change program for the previous year has been run (transaction code AJRW) You can also analyze the difference between the value updates of a specific general ledger account in an asset account and SAP general ledger, use transaction code ABST, here you can enter the company code, fiscal year, depreciation area and the reconciliation account, in my case the G/L account did not have line item enabled. Lastly you can also perform manual reconciliation between fixed asset and general ledger accounts by using the asset history sheet and the general ledger balance display reports, first go to the asset history sheet (transaction code AR01) and enter the data, then using transaction FGLB03 (general ledger balance display) enter the corresponding asset reconciliation accounts (configured in transaction code AO90) and execute the transaction to display and compare the balances. Depreciation Posting Run The depreciation posting run is performed periodically within asset accounting, it involves the transfer of valuations from FI-AA to general ledger accounting, where they can be used for balance sheet evaluations. Depreciations for tangible assets need to be distributed systematically across the useful life of the asset and the depreciation method used must correspond to the enterprises consumption of the assets economic usefulness. As mention before there are two types of depreciation Ordinary Depreciation refers to the reduction in the value of an asset over time owing to wear and tear, the range of methods can be used for this type of depreciation, these include straight-line, the declining-balance method and the unit-of-production method of depreciation. Unplanned Depreciation exceptional events, such as damage (flood, fire) that result in a long-term reduction in the value of an asset are mapped in the system using planned depreciation. Let go through a complete example, first let’s create an asset (delivery van) using transaction code ABZON, we enter the van details and then save thus capitalizing the asset which means that it can be depreciated
  • 117. The system will confirm the completed asset entry We can see the various valuation approaches in the asset master record, depreciation area 01 the asset is subject to straight-line depreciation over a period of 5 years in accordance with US-GAAP specifications, numerous parameters are defined to determine whether interest is to be calculated for the cost accounting area and whether depreciation below zero is permitted. If revaluation (indexing) is permitted in a depreciation area, an index series can be defined in the asset or asset class for calculating the replacement value per fiscal year. The system calculates the replacement value and posts the depreciation together with the interest in the periodic depreciation posting run. You can configure the index series using the SAP easy access menu (left-hand screenshot), you can see the existing series that I have created in the right-hand screenshot. In the example above the useful life in depreciation area 01 is 5 years and therefore an annual depreciation of 20% of $10,000 is $2,000, however let’s say that we had a cost center depreciation area with 7 years which means the depreciation would be $1,428 per year. An example of this is in the below asset notice the difference between the useful life of the asset between the different depreciation areas.
  • 118. Now we move on to the depreciation run, using transaction code AFAB, we fill in the details, notice the section reason for posting run, here you can start a planned posting run, or a unplanned posting run, you can repeat or restart a previous posting run. Also notice that there is a test run checkbox which allows to check the depreciation run before posting, you can select the list assets checkbox to see the assets. When we perform the test run we have a 1000 asset limit (this limit is also included in the proper posting run) The results are returned and as you can see I have a number of deprecations, we can also see the delivery van we created earlier, if you also notice you can see some ordinary and unplanned depreciation To actually run the deprecation we return to the main screen, remove the test run and then run it in the back group by selecting program -> execute in background (left-hand screenshot), the print parameter dialog will appear, here I select the defaults Next the schedule dialog box appears here you can setup a schedule, or in my case we will immediate run it
  • 119. SAP confirms that the job has been scheduled Now let’s take a look at the job, we select system -> services -> jobs -> job overview And then using the defaults select the execute button, (you may have to change a few options to reflect your environment, for example the username) A list of all the jobs will appear, I sorted by start time making my job at the top, select the spool icon and then drill down into the job Eventually you will get to the deprecation log
  • 120. The other way to look at the log is to use transaction code AFBP, the initial screen is a filter screen (left-hand screenshot) and the when enter the depreciation log will appear (right-hand screenshot) If we look at the asset using the asset explorer (transaction code AW01N), you can see the 08/2013 posting (bottom red box), the ordinary depreciation is now at 166.80 and the net value has depreciated to 9,833.20, when you run this each month the ordinary depreciation will increase and the net book value will decrease until zero where the asset can then be retired, however you may choose to sell the asset before reaching zero. Unplanned depreciation of an asset is used when something negative happens to the asset, for example a motorway may be built next your building, a flood or fire at the offices may happen, in which a asset becomes depreciated more quickly, you can use transaction code ABAA or the SAP easy access menu
  • 121. The initial screen requires some details such as the asset number and date information, we are using transaction type 650 (unplanned depreciation on new assets data) as the asset was created in the current year, you could use 640 (unplanned depreciation on old assets data) for older assets that were acquired in previous years. The next screen details the value adjustment amount, you can optionally enter some text as to the reason. When you post the document an entry has to be made in all depreciation areas, so you will see the below screenshot for each area that you have configured for the asset, just select the green tick for each entry, finally the adjustment will be posted (right-hand screenshot) We can then take a look at the asset using the asset explorer (transaction code AW01N), you can see that book value has decrease by the new unplanned dep. value (top red box), you can also see a record of the unplanned depreciation in the transactions section (bottom red box)
  • 122. Asset accounting also creates an asset history sheet, which is essential for the financial statement in accordance with legal requirements, you can use transaction code S_ALR_87011990 or the SAP easy access menu The initial screen is a filter screen, here I have entered the minimum required The report is very detailed (I have changed the column layout), we can see the assets, when it was acquired, capitalized and retired, the depreciation for the year and the current net book value, there are many columns that you can use. You can double-click any asset and you will be taken to the asset explorer detailing that asset.
  • 123. Value Adjustments At the end of a posting period an enterprise must determine the value in real terms the receivables that have been posted, there may be instances where the customer is unable to pay due to insolvency, this means a value adjustment needs to be made, in the context of closing operations a distinction is therefore made between individual value adjustments and flat-rate value adjustments. We will start with value adjustments, this is where the customer is insolvent and payment in full can no longer be expected for a delivery or a service provided. This receivable must be classed as a doubtful receivable and according to the prudence concept the year-end closing must take in account of the risks and losses of which the enterprise is aware when preparing the annual financial statement. In the SAP system value adjustments requires a manual posting, it may be the case where a portion of the outstanding receivable may be paid, because the quota is still to be clarified when the value adjustment is performed the tax amount must not be adjusted, the receivables are written off with a tax code of 0%. As soon as the allocation quota is clarified the individual value adjustment is reversed. The open item is cleared by a cash receipt or depreciation of the remaining amount. The tax on sales and purchases is adjusted at this point. Let’s look at an example, before we begin let’s look at the invoice that won’t be paid We will use transaction code F-21 (transfer without clearing), the original invoice remains in the account and its value is negated by an individual value adjustment, we will use posting key 19 which creates a credit item in the customer’s account and enables account assignment via a special G/L transaction. It must not be posted to the usual customer clearing account, instead an alternative clearing account is selected with special G/L transaction "E" (reserved for bad debit) We can then simulate and check that everything is OK Once posted if we look at the account balance we see that an entry of -2,046,88 has been posted which negates the 2,046.88 posted on the 09.07.2013, this is then reflected in the balance.
  • 124. Flat-rate value adjustments do not involve missed payments or insolvency, there are two methods  manual flat-rate value adjustment - this is based on an estimate entered as a manual G/L account posting with the "Expense flat-rate value adjustment to value adjustment" posting record. this method is flexible but error- prone  flat-rate individual value adjustment - this term refers to a group of customers whose receivables are to be devalued as a batch using a predefined set of rules, the method is execute automatically. The program for flat- rate individual value adjustments selects a group of receivables, calculates the required adjustments on the basis of empirical values or the reliability of the accounting standard and automatically assigns these receivables to an account. Before receivables can be automatically valuated the master data record of the customer has to be updated, as seen in the screenshot below, The value adjustment key can be user defined using the IMG (left-hand screenshot), if you look at the DN value adjustment key (right-hand screenshot) you can see that after 10 days overdue receivables are devalued by 3%, after 20 days this increases to 4% and receivables that are overdue by 30 days or more are devalued by 5%. Now that we have looked at the configuration of the value adjustment key we can move onto the valuation, you can use transaction code F107 or the SAP easy access menu This is similar to the payment run and dunning run, we start by entering a the run date and a unique identifier, then we have to setup some parameters by selection the maintain button
  • 125. The parameter screen is self explaining, we will be using valuation method 3 (flat-rate individual value adjustment), the amount valuated is to be posted to the accounts for the US accounting standard on the key date of 21.08.2013 and automatically reversed by the program on 01/01/2014. Using the selection option button we can specify the company code and the accounts to which the value adjustment are to be posted. Once you have enter the parameters, select the save icon (disk icon) and then you are ready to run the valuation, you then select the dispatch button, you can schedule the job to run later, in my case we will run immediately Keep hitting the green tick button, the valuation will change from running (left-hand screenshot) to finished (middle screenshot), like the payment and dunning run it produces a proposal first, here you can check the customers and open items that were selected in the background and a value adjustment requirements that were determined on the basis of the defined parameters. Here you can change the parameters and rerun, delete the proposal, view the proposal (see below for log), look at a sample posting ( right-hand screenshot) and ultimately transfer the valuations by executing the run (forward button).
  • 126. The value adjustment log Other useful adjustments transaction codes Inflation adjustment of general ledger accounts FJA1 Change last adjustment dates FJA2 Foreign Currency Valuation The currency in which your independent accounting unit (company code) draws up its financial statements is known as the local currency, postings entered in a different currency need to be valuated on the relevant key date, the regulations for doing this may also differ depending on the accounting principles are applied. Under the IFRS and US-GAAP standards the key date principle involves valuation using the exchange rate that is valid on the key date. This may conflict with local regulations that permit devaluation and prohibit upward revaluation. The report which you need is SAPF100, which you can access from system -> services -> reporting, the program will perform the following  Calculation of valuation differences based on a proposal list  Key date valuation with subsequent reversal  Update of document information I will explain what steps are involved with foreign currency valuation with an example, first let’s view the exchange rate currency either using transaction code S_BCE_68000174/S_B20_88000153 or the SAP easy access menu The translation rates can be seen in the left-hand screenshot, and the currency exchange rates using a work list can be seen in the right-hand screenshot. You can either copy an existing rate in the translation rates screen (left-hand screenshot) and modify or change an existing one, here I have changed the top line rate to 1.66730 which we will see later.
  • 127. If you double click on a work list (I have covered wordlists in my FI section) you can enter the details, in the below example we can see that it takes $1.40 to buy €1 euro, or €0.71 is the price to buy $1. Once you have created your working lists then you need to set the working list to complete, by selecting the green tick with a pencil icon. The status icon should change from red to green. Once the foreign exchange rates have been configured we can run the foreign currency valuation, you can use transaction code FAGL_FC_VAL or use the SAP easy access menu I have keep the details to a minimum but you can filter as much as you need, there are a number of tabs that can refine the filtering, the valuation method specifies how the valuation is to be executed, one of three methods is normally selected, I have already discussed the principles in my parallel accounting section.  Valuation in principle (key date principle)  Lowest value principle  Strict lowest value principle We will examine the three principles we mentioned above, a receivable posted on April 30 at an exchange rate of €1.60/$1 is to be valuated on the relevant key dates for the valuation areas US (US-GAAP), IA (IFRS) and LO (local GAAP) using the various methods available, the interest rates on the key dates are  04/30 - €1.50/$1  10/30 - €1.60/$1  11/30 - €1.70/$1 Valuation Area Valuation Method 09/30 10/30 11/30
  • 128. US Valuate in principle 1.50 1.60 1.70 IA lowest value principle 1.50 1.60 1.60 LO strict lowest value principle 1.50 1.50 1.50 The postings are entered in a P&L account or adjustment account for receivables or payables because you cannot directly post to a reconciliation account. The values are therefore posted to an adjustment account that is expressed in the same balance sheet item as the relevant reconciliation account. When the report is run we get the results screen below, we can see that there is a 2.98- difference (remember I changed the exchange rate to 1.66730), We can see that there are two postings the first document is automatically reversed on 01.09.2013. remember these are open items and the exchange rate may change again, hence the reserve posting, until the items are cleared in which case the exchange rate will be valuated then. In some countries you are not permitted to reverse a valuation at the end of a fiscal year, in this case the valuation difference must be updated in the open item, to do this select the valuation for balance sheet preparation checkbox in the program SAPF100. You can also valuate differences using the transaction code FBL5N and selecting the valuation difference field I just want to finish off by mentioning that you can translate your account balances from local currency into group currency, this translation is performed in accordance with FASB 52 (U.S. GAAP) or IAS. You can use transaction code FAGL_FC_TRANS
  • 129. Item Interest Calculation Interest calculations have a relatively minor significance in the context of closing operations, however SAP provides functions for calculating and automatically posting interest based on account balances or line items. I have already covered balance interest calculation in my G/L accounting configuration section, now we will take a look at item interest calculation, We will use an employee loan example, first we must update the customer (employees) master data, we set the interest indic and interest cycle fields, also note the last key date field we will discuss this shortly Once the master data has been updated, we create a invoice for the employee which is a loan of $5,000 Next we configure the item interest calculation using the IMG
  • 130. I have split the screen across to screenshot as it is too large to fit on one, there is not too much to configure here, we select the open items and define the number range (use transaction code FBN1) and select the post interest checkbox, there are other options which I will leave you to explore. Now the configuration part is completed we perform the item interest calculation using transaction code FINT or the SAP easy access menu (left-hand screenshot), the initial screen is a filter screen, here I have entered the minimum, if you notice we can perform a test run, that way you can check the results before posting. I am going to calculate the interest for just over the month for the employees loan that we create a moment ago The results screen is as below, you can see that it picked up the loan amount for $5,000 and applied the interest rate of 3% calculating on 38 days interest. You can get more details about the process by looking at the log, the last icon
  • 131. When you do post you will get a detailed screen of the outcome, you can see my run at the top, if there are any errors SAP will indicate the problem, mostly it will be to do with the indicator not being setup correctly of a missing number range. For information on how to configure the time-dependent interest terms see balance interest calculation in my G/L accounting configuration section. because interest rates are highly susceptible to fluctuations you can make changes before you post, using transaction code S_ALR_87002510 you see the selection of defined interest indicators and also currency-dependant and time-dependant interest terms. If we double-click on a time-dependant interest term (in our case 01 USD seq no 1), we can see where the 3% interest rate came from. You can view the interest calculation runs using transaction FINTSHOW, the initial screen is a filter screen which is self-explaining, the results of the log can be seen below.
  • 132. When you run a interest calculation the master data of the customers record will be updated, as you can see below the employee record has been updated to the date of the last run. Lastly if we look at the customers (employee) line items we can see that the interest as be posted to the account, so the balance now reflects the loan and the interest. Reconciliation Measures Financial accounting influence business decisions, share price, performance-based remuneration, etc. You need to make as accurate report on assets, profitability and over financial situation, reconciliation measures are intended to check figures and ensure that they are correct. We will discuss two types of reconciliation measures  Manual checking of postings  Technical reconciliation of transactions figures We will start with manual checking of postings, the larger the company the more posting errors we expect, these can have a negative influence on the information value of financial accounting figures, however we cannot check every posting, a balance must be achieved between the costs and benefits of reconciliation measures, you could restrict the checks to certain accounts or amounts posted. We can use transaction code FBL3N, which we have used a number of times, this time we will select a number of different accounts, using the multiple section tool (the right pointing arrow to the right of G/L account), here I enter a number of G/L accounts
  • 133. The results screen returns the line items, here I have sorted on the amount in local curr, now let’s presume that something may be wrong with the first three line items, so we will get another accountant to check We select the three line items lines and then list -> send We enter some text description for the accountant and select one or more recipients (mistake in the screenshot user should be vallep), We also select the express document checkbox, which means the accountants will be informed immediately When the accountant does anything in his/her screen, a pop dialog box appears, select choose
  • 134. The message then appears on the screen with a link (or you can use the attachments tab) to see the list of line items When the user selects the G/L account line item display link you will see the three line items we asked to be checked. Next we look at the technical reconciliation of transactions figures, this procedure involves comparing the debit and credit postings of the individual documents with the transaction figures from the relevant periods in accounts receivable accounting, accounts payable accounting and general ledger accounting. The results of the analysis report are saved in historical management records. This allows you to document the details of when the reconciliation was performed and the accuracy of the reconciliation measures. This analysis identifies differences that are not permitted by accounting standards which must then be eliminated as soon as possible. We will use transaction FAGLF03 the left-hand screenshot (F.03 was the old transaction code seen in the right-hand screenshot), Any differences will be reported in the results screen,
  • 135. You can view the historic logs and their outcome, by selecting the display log option, here we can see that there we reconciliation problems on the 21.05.2007 You can also check the reconciliation between companies using the SAP easy access menu, there are a number of different reports Here I use transaction code FBICR3L, to display the intercompany open items, you can then use transaction code FBICA1 and/or FBICR1 to clear the documents and reconcile the accounts. Reclassification It is necessary to sort receivables and payables based on their validity periods, on the balance sheet it may be a case that there are outstanding payables to be made to customers and receivables to be paid by vendors, regrouping is required to accurately represent these customers with credit balances and vendors with debit balances in the financial statement. A special program is provided to automatically perform this task of sorting by due date and regrouping which is referred to as reclassification. We can use transaction code FAGLF101, there are three tabs that you can use to refine the selection, we leave the generate postings checkbox unticked as this is a test run. The SAP sort method is configured so that receivables and payables are categorized as follows  Due within one year  Due within one to three years  Due within more than three years
  • 136. Sort methods can be configured differently to give a more general or precise classification, the valuation area linked to the account determination for parallel accounting. The middle screenshot details the account type D (customers) and only select customer 3477, the last screenshot indicates the selected customers are to be grouped together in a group posting in this case. The valuation type 5 (transaction of balances) means that payables and receivables are to be sorted on the basis of their due dates and are to be reclassified. You can check the postings before you actually run for real. When posted the balances for the account is reclassified. You can view a precise representation in the balance sheet, you can see where the G/L account is represented in the balance sheet by using transaction code FS00 and selecting the G/L account, here you can select the edit financial statement version. In the below screenshot you can see that this G/L account is used in the CAUS financial statement version, it could also be used in other financial statements as well. Selecting the green tick we are taken to the position in the financial statement (CAUS).
  • 137. Balance Confirmations After the balance carry forward has been technically completed and the old fiscal years has been blocked, balance confirmations must be sent. The purpose of these letters to confirm with your trading partners the figures for the relevant receivables and payables. Letters are sent to the customers and vendors with figures based on the accounts, a standard reply letter is to be completed by the customer or vendor to speed up the process (confirmation or rejection), the letter is then sent back to a audit department to confirm in the system, a check list is performed an results tables is formed. We can use transaction code F.17 (A/R) and F.18 (A/P), the initial screen is a filter screen, here I have enter the minimum amount of data When you run the report you will be shown the printed balance confirmation letters, here I have two screenshot's as the letter is too large to capture in one screenshot. To ensure complete and comprehensive documentation you can print the list of parameters used for selection shown earlier, as a fraud avoidance measure, balance confirmation forms part of the overall corporate governance concept.
  • 138. You can also use transaction code FK10N (vendor) or FD10N (customer) to see balance display reports. Period Control For documents to be posted the period must be technically open, in other circumstances you may want to prevent postings in a certain period once specific activities have been completed, for example the advanced return for tax on sales and purchases or auditor certification of the balance sheet, these tasks are the responsibility of period control, which represents both technical and business functionality, period control is not only used on FI but in other modules as well CO and MM, we can use transaction code S_ALR_87003642 or use the SAP easy access menu You can see the posting periods detailed below, I have covered in detail posting period variant in my FI configuration and setup section. When you fill in a document header the date will be checked to confirm that period is open, SAP will notify you if it is not, you can open periods for specific account types (customers, vendors, assets, etc). If you notice we also configure the special periods as well these are posting periods 13 to 16, again I discuss this in my posting period variant section. The AuGr (Authorization Group) column is used to restrict users to alter the control table, it is only possible for a user defined in the authorization concept (object F_BKPF_BUP) to enter postings in the interval, this allows you to limit the number of users involved in the closing operations. Tax on Sales and Purchases There are a number of reports that can help with input and output tax on sales and purchases, at the period end these amounts must be checked and totaled and the balance reported to the tax authorities as a receivable or payable. The program for advanced returns for tax on sales and purchases (which is provided in many country-specific versions) posts the balance of input and output tax to a tax payable account, generates a log and if required provides an electronic data record for the authorities, I have already discussed tax in my FI configuration and setup section which I have a whole section on. We can use transaction code S_ALR_87012357 or use the SAP easy access menu.
  • 139. The initial screen is a filter screen, I am using company code 1000, and some past dates, to capture some data, you can even group company codes, in addition to the selection criteria, posting criteria must also be defined for the program. The accounts for input and output tax that are associated with the tax codes are cleared in a procedure that involves posting the balance to a defined tax payable account for receivables or payables due from or to the tax authorities, this can be saved to a batch input session using the tax payable posting tab. You can increase or decrease the logging output as displayed in the below screenshot. The results screen details the documents and calculates the balance of input and output tax based on the tax code. The program then creates a batch input session for tax payable postings, generates a file for electronic communication with the authorities and outputs the overall results in a log. Once the receivable is posted the relevant data must be communicated to the tax authorities, we can use transaction code FOTV or use the SAP easy access menu,
  • 140. The initial screen is a filter screen, if there are any tax returns SAP will display these, the tax on sales and purchases payable can be classified as either a system amount (in other words an amount calculated by the Advanced Return for Tax on Sales/Purchases program) or an external amount. You can change the values before sending the report to the tax authorities (transfer data F8), again SAP will confirm if the data sent was successful or not. Balance Carry forward When the fiscal years closes several activities must be completed in the SAP system, one of these is the balance carry forward, the year-end closing means that the closing balance of the balance sheet accounts also serves as the initial balance in the next fiscal year. Things are more complicated for income statements accounts, in the new fiscal year the opening balance in these accounts is always zero (they start with a clean sheet), this is certainly true of the profit and loss accounts at least. When the fiscal year changes its balance is posted to one or more special retained earnings accounts. In most countries the carry forward in the balance sheet and profit and loss statement accounts is not implemented as a posting in the SAP system. Instead the balance of the last posting period is carried forward as the balance in period 0 of the new fiscal year without a posting record. An opening entry is only possible in certain countries where this is legally permitted. We can use transaction code FAGLB03, we enter the account and company code details At the start of the year we can see the €60,000 in period 0, which is the opening balance for this account, it is possible to post items if there is no balance carry forward, the balance carry forward only influences the cumulative balance. To carry forward the balance we can use transaction code F.16 or FAGLGVTR (new G/L), or F.07 to carry forward the balances of accounts payable and account receivable.
  • 141. The initial screen is a filter screen, if you notice we can perform a test run before we actually carry forward the balance. You get a detailed log, here you can see that some accounts have been identified, we can use both the balance sheet accounts and retained earnings accounts buttons to display more details The left-hand screenshot you can see the balance sheets, the right-hand screenshot displays the retained earnings accounts. When you carry out the carry forward balance, check the accounts for the new fiscal year to confirm that the carry forward has been carried forward. I have also discussed the closing cockpit which can help with period closing and year end tasks.
  • 142. Period-End Master Checklist # Description Transaction Code Application Day Month Year 1 update exchange ranges S_BCE_68000174 FI X X 2 ensure movements are complete VL10A SD X 3 ensure inventory movements are complete - goods issue (PS) VL10A PS X 4 ensure inventory movements are complete - goods issue VL10 CS X 5 record purchase-order-related AP transactions MIRO MM X X 6 record purchase-order-related AP transactions MIRO CS X 7 release blocked invoices MRBR MM/PS X X 8 release blocked invoices MRBR CS X 9 incomplete SD documents V_UC SD X 10 blocked SD documents VKM1 SD X 11 collective proc.analysis (Deliv) V_SA SD X 12 review sales documents blocked for billing V23 SD X 13 review billing due list VF04 SD X X 14 review failed billing document creation after billing due list (VF04) execution V.21 SD X 15 release billing documents for accounting VFX3 SD X X 16 failed goods movement COGI PP X 17 reprocessing incorrect information CO16N PP X 18 gaps in document number assignment S_ALR_87012342 FI X X 19 invoice numbers allocated twice S_ALR_87012341 FI X X 20 open period for material master records MMPV MM X 21 open new MM period (PS) MMPV PS X 22 open new MM period MMPV CS X 23 open and closing periods OB52 FI X 24 actual overheads calculation prod. order CO43 CO X 25 preliminary settlement for co-product CO8A CO X 26 WIP calculation PP order KKAO CO X 27 calculation of work in process (WIP) CI8G PS X 28 display work in process KKAQ CO X 29 review WIP calculations KKAJ PS X 30 prod. and process order variance calculation KKS1 CO X 31 product cost collector variance calculation KKS5 CO X 32 settlement PP order CO88 CO X 33 PP order (close) CO02 PP X 34 product order changes (status) COOIS PP X 35 enter recurring document FBD1 FI X 36 Post recurring document F.14 FI X 37 post recurring document with BI SM35 FI X 38 automatic GR/IR clearing F.13 MM X 39 analysis GR/IR clearing accounts F.19 FI X 40 automatic GR/IR clearing F.13 FI X 41 manual clearing general ledger F-03 FI X 42 manual clearing account receivable F-32 FI X 43 manual clearing accounts payable F-44 FI X 44 post adjustment entries FB50 FI X 45 foreign currency revaluation FAGL_FC_VAL FI X 46 reposting of unassigned functional area KB61 FI X 47 order settlement (asset under construction) AIAB FI-AA X 48 depreciation run AFAB FI-AA X 49 periodic asset posting ASKBN FI-AA X 50 depreciation simulation S_ALR_87012936 FI-AA X 51 open and close FI period asset OB52 FI-AA X 52 recording of statistical key figures KB31N CO X 53 assessment cycle cost center accounting KSU5 CO X 54 assessment cycle cost center account (quality costs) KSU5 CO X 55 accrual calculation KSA3 CO X 56 order settlement (internal order) KO8G CO X 57 settlement service orders KO8G CS X 58 close completed service orders (business view) CO99 CS X
  • 143. 59 close completed projects (business view) CJ20N PS X 60 generate settlement rule CJB2 PLM X 61 settling the project CJ8G PLM X 62 closing the project CJ20N PLM X 63 project reporting S_ALR_87013531 PLM X 64 actual settlement project to profitability analysis (CO-PA) CJ8G PS X 65 run profitability report KE30 PS X 66 assessment cycle cost center to COPA KEU5 CO X 67 stock valuation MRN0 FI/CO/MM X 68 copy actual to plan version 3 KP98 CO X 69 assign depreciation for depreciation area 15 S_ALR_87099918 CO X 70 delete depreciation from depreciation area 20 in version 3 KP90 CO X 71 activity price planning (version 3) KP26 CO X 72 activity price planning tariff (version 3) KSPI CO X 73 inventory costing CK11N CO X 74 price update CK24 CO X 75 stock market adjustment FB50 FI X 76 period lock OKP1 CO X 77 create intrastat/extrastat periodic declaration ENGR SD X 78 advanced return for tax on sales and purchases S_ALR_87012357 FI X 79 post tax payable FB41 FI X 80 EC sale list S_ALR_87012400 FI X 81 foreign trade regulation reports Z4 S_ALR_87012405 FI X 82 foreign trade regulation reports Z5A S_ALR_87012162 FI X 83 comparison documents/transaction figures FGLF03 FI X 84 balance interest calculation F.52 FI X 85 compact document journal S_ALR_87012289 FI X X 86 document journal S_ALR_87012287 FI X 87 cash position & liquidity forecast FF7A FI X X 88 open and close posting periods OB52 FI X 89 run profitability report KE30 CO X 90 financial statements S_ALR_87012284 FI X 91 create factory calendar for new year SCAL cross X 92 controlling maintain versions S_ALR_87005830 CO X 93 costing run CK40N CO X 94 define percentage overhead (actual) S_ALR_87008275 CO X 95 recalculating values AFAR FI-AA X 96 account reconciliation ABST2 FI-AA X 97 fiscal year change AJRW FI-AA X 98 year-end closing asset accounting AJAB FI-AA X 99 carry forward AP/AR balances F.07 FI X 100 carry forward general ledger balances FAGLGVTR FI X 101 regrouping receivables/payables FAGLF101 FI X 102 balance confirmation receivables F.17 FI X 103 balance confirmation payables F.18 FI X 104 close previous account period OB52 FI X 105 financial statements S_ALR_87012284 FI X 106 document journal S_ALR_87012287 FI X Declaration: This document is prepared by keeping SAP IDES Demo System as base. It’s nowhere connected to SAP Live System because I am a SAP Certified Newbie (Fresh Talent)- Job Seeker. Thanks & Regards Pramila Nagaraj, MBA Finance with Added SAP Edge (Certified) SAP FI Certified and Verified Candidate of SourceOne Management Services Pvt. Ltd Bangalore