1. Automatic Payment Program Run
Before executing the Automatic Payment Program we have to do these following steps :
Maintain payment parameters
Create payment proposal
Edit payment proposal
Payment run
Print run
T code :F110
2. Maintain Payment Parameters
In this step we have to maintain the parameters such as
• The date of execution of payment run
• Payment run identifier
• The paying company code
• Payment method
• The next posting date
The payment run then needs to be scheduled either immediately or at a specified time/date.
3. Create Payment Proposal
In this step the system creates payment proposal based on the payment parameters
maintained in 1st step.The system selects the eligible open items based on the following
sequences :
• Due date is determined via the base line date and the terms of payment for each of the line
items
• Program calculates the cash discount period and due date for the next payment
• Grace periods are the added to this due date
• The system will determine whether to include an item during the current run or for the
future one based on the payment parameters
The payment proposal can be displayed for further processing
4. Edit Payment Proposal :
After creating the payment proposal we have an option to edit that proposal to :
• Change house bank,from what was maintained earlier
• Change payment method, if necessary
• Change payment due date to relax or restrict certain open items
• Block/unblock line items
5. Payment Run
• After the Create the payment proposal/edit the payment proposal we can run the
payment program that payment program creates the payment documents and prepares
the data for printing the forms or creating the tape or disk.
• Before printing the forms, check the logs to determine that the payment program run
was successful
Print Run
Payment Medium Program use the data prepared by the payment program to create
forms or files for the data media. We need to define the Variants for print programs
which need to be defined :
• Per payment method per country-assign a print program
• To ran the Print program- Atleast one Variant per Print Program per payment method
6. Tax Calculations on Sales & Purchases
SAP uses a technique called Condition Method to calculate taxes except withholding tax in the
system. The system makes use of Tax procedures defined in the system together with Tax codes
for calculating the quantity of tax. Before Calculating tax we have to configure these steps :
Check Calculation procedure
Check and Change settings for Tax processing
Define Tax procedures
Assign Country to calculation Procedure
Define Tax Codes
Assign Tax codes for non Taxable Transactions
Creation of G/l accounts
Attach Tax accounts for automatic postings
7. Check calculation Procedure:
PATH : SPRO-Financial accounting(new)-Financial accounting global settings-Tax on
sales/purchases-Basic settings-Check calculation procedure
In this step we have to define Condition Types to paid tax for example excise duty
paid,cess paid, VAT paid,CST paid and to payable tax for example excise duty
payble,cess payable, VAT pable,CST payable. And we have to update these fields:
• Condition class
• Calculation type
• Condition type
• Condition category and
• Access sequences
8. Check and Change settings for Tax processing
PATH :SPRO-Financial accounting(new)-Financial accounting global settings-Tax on
sale/purchases- Basic settings-Check and Change settings for Tax processing
In this activity we make the necessary specifications for posting taxes. In doing this we specify
under a process key the following indicators:
• Tax type : Output tax, input tax, additional taxes, or "not tax-relevant" can be specified as
the tax type.
• No deductibility of tax amounts : For this, tax amounts are marked as not deductible.
• Posting indicator : Here we specify whether the tax amount is posted separately or
distributed to expense or revenue items.
• Tax not relevant to cash discount (Not discount relevant) : This indicator is set only for
Canada. If we select it, the system does not take into account the corresponding tax
amount when determining the tax base.
9. Define Tax Procedure
PATH : SPRO-Financial Accounting(new)-Financial Accounting Global settings-Tax on
sales and purchases-Basic settings-Check calculation procedure
A Tax procedure contains the following :
• Steps –To determine the sequences of lines within the procedure.
• Condition types - Indicates how the tax calculation model will work (whether the
records are for fixed amount or percentages and whether the records can be processed
automatically).
• Account/Process keys – Provide the link between the Tax procedure and the GL
accounts to which tax data is posted. This helps in automatic tax assignments. To enable
that these keys have necessary information for automatic assignment.
Assign country to calculation procedure
PATH : SPRO-Financial accounting(new)-Financial accounting global settings-Tax on
sales/purchases-Basic settings-Assign country to calculation procedure
In this step we have to assign country to Calculation procedure.
10. Define Tax codes :
PATH : SPRO-Financial accounting(new)-Financial accounting global settings-
Tax on sales/purchases-calculation-Define Tax codes for sales and purchases
T Code : FTXP
In this step we define tax codes and tax rates
• Tax code :It’s a 2 digit specifying the percentage of tax to be calculated on the
base amount. While defining the tax code we will also define the tax type to
classify a tax code relating to either Input tax or Output tax. The tax types are
country specific an d determine how a tax is calculated and posted.
• Tax rate :The tax rate is the percentage of tax to be calculated on a base
amount. We will be able to define tax rates for one or more tax types when we
define a single tax code.
11. Assign Tax codes for non taxable transactions :
PATH : SPRO-Financial accounting(new)-Financial accounting global settings—Tax on
sales/purchases-posting-Assign tax codes for non taxable transactions.
T Code :OBCL
• In this activity we define an incoming and outgoing tax code for each company code, to
be used for posting non-taxable transactions to tax-relevant accounts.
• Transactions posted like this are,
for example; goods issue delivery, goods movement, goods receipt purchase order,
goods receipt production order, order accounting.
12. Creation of GL accounts :
• Create accounts for example excise duty paid,cess paid,cst paid, VAT paid in FS00 under
asset account group.
• Create accounts for example excise duty payable,cess payable,cst payable, VAT payable in
FS00 under liability account group.
Attach Gl accounts for automatic postings :
PATH : SPRO-Financial accounting (new)-Financial accounting global settings-Tax on
sales/purchases-Posting-Define Tax accounts
T Code :OB40
In this activity, we specify the accounts to which the different tax types are to be posted.
The system determines these accounts for automatic postings.
13. Interest Calculations
There are two defined interest calculation types in the SAP System.
1. Balance interest calculation.
2. Item interest calculation.
System defined variant for balance interest calculation type is „S‟ and item interest calculation type is „P‟.
Balance interest type calculation is used for G LAccounts. Item interest type calculation is used for vendors
and customers.
The following steps are involved in interest calculation:
• Define Interest Calculation Types
• Prepare Account Balance Interest Balance
• Define Time Dependent Terms
• Creation of G/LAccount
• Define Automatic Posting Account
• Interest Posting Run
