A ProjectOnCreation of a Virtual Company Using SAP Tool

Prepared ByMr. Sritam Kumar DashEnrollment No: 13DM036Batch: 2013-15, Sec-B

Under the Guidance OfProf. Babuli SahuAs a Part of ERC Course

Institute of Management & Information ScienceBhubaneswar

Contents1) Introduction to SAP32) Merits and Demerits of ERP33) SAP architecture44) SAP software45) Creation of Company56) Company Code67) Chart of account68) Account Group79) Retained Earnings Account810) Field status variant811) Assign company code to field status variant912) New General Ledger account913) Check the list of account1014) Company wise detail1115) Define Business Area1116) Fiscal Year1217) Assign Company code to Fiscal year1318) Posting Period1419) Open and close posting period1420) Assign company code to posting period variant1521) Document type and Number Range1522) Tolerance Group1723) Assign tolerance group to company1824) Global Parameter1825) Financial statement version1926) Document splitting2127) Document/ Voucher Entry2128) Reports2229) Conclusion & Limits23

Introduction to SAPSAP ERPisenterprise resource planningsoftware developed by the German companySAP SE. SAP ERP incorporates the key business functions of an organization. The latest version (SAP ERP 6.0) was made available in 2006. The most recent Enhancement Package (EHP7) for SAP ERP 6.0 was released in 2013.SAP ERP was built from modules comprising the formerSAP R/3. SAP R/3 through version 4.6c consisted of various applications on top of SAP Basis, SAP's set ofmiddle ware programs and tools. When SAP R/3 Enterprise was launched in 2002, all applications were built on top of theSAP Web Application Server. Extension sets were used to deliver new features and keep the core as stable as possible. The Web Application Server contained all the capabilities of SAP Basis.As a result of marketing changes and changes in the industry, new versions of SAP have been released. The first edition of my SAP ERP was launched in 2003 and bundled previously separate products, including SAP R/3 Enterprise, SAP Strategic Enterprise Management (SEM) and extension sets. The SAP Web Application Server was wrapped into Net Weaver, which was also introduced in 2003.A complete architecture change took place with the introduction ofmy SAPERP edition 2004. R/3 Enterprise was replaced with the introduction of ERP Central Component (SAP ECC). The SAP Business Warehouse, SAP Strategic Enterprise Management and Internet Transaction Server were also merged into SAP ECC, allowing users to run them under one instance. Architectural changes were also made to support an enterprise service architecture to transition customers to a services-oriented architecture.SAP HANAwhich is a combination ofIn-memorysoftware and hardware can improve data processing at extremely high speeds.

Merits and Demerits of ERP

Advantages Allows easier global integration (barriers of currency exchange rates, language, and culture can be bridged automatically) Updates only need to be done once to be implemented company-wide Provides real-time information, reducing the possibility of redundancy errors May create a more efficient work environment for employees Vendors have past knowledge and expertise on how to best build and implement a system User interface is completely customizable allowing end users to dictate the operational structure of the product.

Disadvantages Locked into relationship by contract and manageability with vendor - a contract can hold a company to the vendor until it expires and it can be unprofitable to switch vendors if switching costsare too high Inflexibility - vendor packages may not fit a company's business model well and customization can be expensive Return on Investmentmay take too long to be profitable Implementations have a risk of project failure

SAP Architecture

SAP Recent SoftwareSAP software developmentSAP 4.6c->SAP 4.7->SAP ECC5.0->SAP ECC6.0

Creation of CompanyCompany is nothing but a client to whom we are going to implement in SAP. It represents a corporate group. It is the highest organization unit in enterprise structure. Company name APS technology.Path- SPRO-SAP reference IMG-Enterprise structure-Definition-Financial Accounting-Define Company-New entries

Company CodeIt is an independent organization unit that represents subsidiary of company. One company can have many company code.Path- SPRO-SAP reference IMG-Definition- Financial accounting- Edit, copy, define and check company code- Edit company code data- New entries. Company code is C032.

Chart of Account (COA)It is list of GL accounts master records that are used by the organization. A chart of account must be assigned to each company code.Path-Chart of account- Name- Maintain language- GL account- Controlling Integer- Consolidation- Starts. COA is C032.

Then we have to assign the respected company code to Chart of account.Account GroupIt is used for consolidation purpose. We have to define all kind of GL accounts like asset, liability, Income and expenditure with different number ranges.Path- SPRO-SAP reference IMG- Financial accounting- General ledger accounting- G/L accounts- Master data- Preparation- Data account group- New entries.

Retained Earnings AccountIt is used for carry forward the balance. There may be more than one retained earning account but one is mandatory.Path- SPRO- SAP reference IMG- Financial accounting- General ledger accounting- G/L accounts- master data- preparation- Define retained earning account- Enter chart of account- C032.

Field Status VariantIt comes true fields or the documents posted to a G/L account. Field status group is mandatory. To specify field status or suppress design required. Field status variant is pr01.Path- SPRO- SAP reference IMG- Financial accounting- General ledger account- Business transaction- G/L account- Make and check document setting- Define field status variant- Enter field status variant key.

To view the list selected in field status variant double click on field status group.Assign Company Code to Field Status VariantWe have to assign the company code to created field status variant.Path- SPRO- SAP reference IMG- Financial accounting- G/L accounts- Business transaction- G/L account position- Business transaction- G/L account posting- master document setting- Assign company code.

New General Ledger AccountWe have to enter G/L account specific to the series in general chart account. For each and every series of G/L account. Code s FS00 Give company code. Select create button. Select account group in group chart account. Select the account comes under P/L statement and balance sheet. OB-GLACC12- To display ledger.

Check the List of AccountTransaction code- S_ALR_87012332

Company wise DetailTo show the details of entry in GL account. Transaction code OB_GLACC12- company code

Define Business AreaTo specify the business related area of the companySPRO- SAP reference IMG- Enterprise structure- Definition- Financial Accounting- Defne Business area.

Fiscal YearIt is the time period which is used to prepare the different financial statement of the company. Its also called as financial year/ Budget year. It can as per the calendar year or companys own business rule.It consists of 12 required posting period and 4 special period for audit or tax purpose depending upon the quarterly or semiannually entry. In India Fiscal year is from 1st of April to 31st March. For the fiscal year FY15 structure is as follows. If we consider todays date 25th oct 2014 the structure isMONTHSM.NODAYSPERIODS IN SAPYEAR SHIFT

JAN 13110-1

FEB 22811-1

MAR33112-1

APR43010

MAY53120

JUN63030

JUL73140

AUG83150

SEP93060

OCT103170

NOV113080

DEC123190

Path- SPRO- SAP reference IMG- Financial Accounting- Financial Accounting Global setting- Fiscal year variant- New Entries. Code generated ET.

Assign Company Code to Fiscal YearWe have to assign company code C032 to the created fiscal year.Path- SPRO- SAP reference IMG- Financial accounting- Financial accounting Global setting- Fiscal Year- Assign company code to fiscal year.

Posting PeriodsIt is used to define which periods are to be define for posting purposePath- SPRO- SAP reference IMG- Financial accounting- Financial accounting Global setting- Document- Posting periods. Posting period variant is APS.

Open and Close Periods in Posting PeriodsPath- SPRO- SAP reference IMG- Financial accounting- Financial accounting Global setting- Documents- Posting periods- Open and close posting periods- New entries.

Assign Company Code to posting period VariantsWe have to assign the posting period variant APS to our company code C032.Path- SPRO- SAP reference IMG- Financial accounting- Financial accounting Global setting- Documents- Posting periods- Assign variants to company code-position- Give details.

Document Type and Number RangeDocument range is defined as specific intervals with in which documents can be created. It depends upon the company code and valid for fiscal year.Path- SPRO- SAP reference IMG- Financial accounting- General ledger accounting- Business transaction- G/L account posting- make and check document setting- Define document type- new entries. Document type is 1P.

Number Range

Tolerance GroupTolerance group should be created for G/L accountCode is OBA0Path- SPRO- SAP reference IMG- General Ledger accounting- Business transaction- Open item clearing- clearing difference- Define tolerance group for G/L accounts.

Assign Tolerance Group to Company

Global ParameterPath- SPRO- SAP reference IMG- Financial accounting- Company Code- Enter Global Parameter.

Financial Statement VersionHierarchical arrangement of G/L account. It is used to create financial statements, to run variable report, as basic plan to general ledger accounting.Path- SPRO- SAP reference IMG- Financial accounting- General ledger account- Business transaction- Closing period- Documents- Define financial statement version- New entries.

Documents SplittingCode is FB50Path- SPRO- SAP reference IMG- FA new- G/L account New- Business transaction- Document splitting- Classify G/L account.

Documents/ Voucher EntryHere we will do all type of entry before report generationCode id FB50

Reports

Conclusion and Limits We got the clear idea how companys different division works in real time and how transaction occurs. Though it is bit expensive but flexible and scalable. It is integrated and co-related. It exhibits three- tier distribution model and supports multi-currency and multi-language. Due to insufficient time we are not able to complete other parts of FI- module like account payable and account receivable. Since we were doing with online software chance of data duplication and missing was there.

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