This document provides an overview of configuring the financial accounting module in SAP. It discusses defining the basic organizational structure including company, company code, and business area. It also covers fiscal year definition, document types, number ranges, and chart of accounts setup. The implementation process in SAP typically follows the ASAP methodology consisting of 5 phases: project preparation, business blueprints, realization, final preparation, and go-live support.

1. SAP FI
System Application and Producting in Data Processing
Financial Accounting Module
Kuramani Patro
MBA Finance SAP FI Consultant

2. Contents
 1. Introduction
 2. ASAP Methodology
 3. R/3 Architecture
 4. Define company
 5. Define company code
 6. Define business area
 7. Fiscal year definition
 8. Define field status variant
 9. Document types and number ranges
 10. Define the Accounting Group
 11. Define chart of accounts

3. Introduction of SAP
 The FI and CO modules are among Sap's very best modules. Their
reliability and flexibility make them a natural choice for many
organization. SAP was founded in 1972 in Germany. It developed a
real-time accounting system to be sold as a standard package. Now
their accounting systems are among the most highly regarded in the
world, well trusted and proven and used by many of the world as a
largest and most successful corporations.
 After that SAP has developed the software as a SAP R/2 on 1974.
 But The real benefits of SAP come from 1992 as a SAP R/3.It is the
integration of all business processes to deliver reliable and efficient
systems that enable companies to remain competitive and in control
of their business. Which handles both the SAP implementations are
becoming easier and costly with industry specific configurations and
system tools and services

4. ASAP Methodology
 The Implementation of the project is more or less similar for all standard
software. In SAP environment also the process of a project Implementation is so
easy to discuss but involves a lot complexity and cost. The total activities and
programmers are to be documented in a proper way. This documentation is a
guide for implementation of a project. This documented is called as ASAP
METHODOLOGY OR SOLUTION MANGER. It is road map for the consultant, to
customize the business processes. primarily based on sequential methodology and
consists of five phases that are to be executed sequentially. Those steps are
mention below.
 1. Project preparation
 2. Business Blue prints,
 3. Realization
 4. Final preparation
 5. Go live and support.

5. R/3 Architecture
 R is a Real time server in SAP. As per the requirement of the
project we can decide the system environment. Basically
there are 3 types of architectures are used in the project
implementation.
 These architectures are mentioned below.
 1. Application
 2.Presentation
 3.Database
 There is 3 Landscapes in SAP
 1.Development
 2.Testing
 3.Production

6. Organization Structure
Client
Company Company
Company
Code 1
Company
Code 2
Company
Code 1
Company
Code 2
Business area 1 Business area 2 Business area 1 Business area 2

7. Define company
Company : The Smallest organization unit which the individual financial
statement can be drawn accordingly to the commercial law of the particular
country.
Clint
Company 1 Company 2 Company 3

8. Define company code
Company Code : The smallest organization unit for
which a complete self-contain set of accounts can be
drawn for the purpose of external reporting
Company
Company Code 1 Company Code 2 Company Code 3

9.  Define business area : Organization unit of financial accounting
that represents a separate area of operations or responsibilities
within an organization and to which value changes recorded in
financial accounting can be allocated.
 Fiscal year definition : Fiscal year is known as a Financial year on
accounting standard. There is 12 normal period and 4 special
period total 16 periods. There is a 4 type of fiscal year. 1.Calender
year 2.Independent year 3. dependent year 4.shortend fiscal year.
 Define field status variant : Field status variant is variant. Which
contain the fields whether it is required, optional or suppressed.
The main purpose of the field status variant is to defining the
screen templates
 for the users to process the business transactions in real time. The
requirement of the input levels is different for different business
transactions. Accordingly sap already preconfigured the screen
outlays. We can copy them and change the name of variant as we
required.

10.  Document types : Document type determines whether the document’s are
stored as well as accounting type has been posted. Document type has
controlled the header files.
 Document number ranges : Number ranges should be independence not
overwritten. you will create the number ranges under the document types.
When you will post the invoice on the document type then document
number ranges will create. There is 2 type of number ranges will create
1.Internal number ranges 2.External number ranges.
 Define chart of accounts : Chart of Account is a contain the structure and
basic information about the general ledger accounting. There is 3 types of
Chart of account.1. Operational chart of account 2.Group chart of account
3.Country Chart of account.
 Operational chart of account : Whatever daily transaction has been posted
on the general account.
 Group chart of account : Consolidation the reports purpose.
 Country Chart of account : This chart of account only country specific.
 Accounting Group : The accounting group determine whether you may
define the account numbers within the specified ranges for the account
creation. The account group also defines the set up when creating a G/L
account in the company code and chart of accounts. By defining the
number interval and the screen layout, you simplify G/L account creation
by reducing the number of entry fields

11. Thank You