Business Area:

TCODE: OX03

An organizational unit of financial accounting that represents a separate area of operations or responsibilities within an organization.

The function of business area is to create balance sheets and profit and loss statements below the company code level.

Whether a single business area can be used by two or more company codes?

Yes, you can use one business area for more than one company code as it an independent org. unit.

if once we use business area, then whether it is mandatory to use it always?

If you have activated business area wise balance sheet, then it is advised to make the Business area field mandatory for all FI postings.  This could be acheived thru Field Status Group. How do we link the business area to company code? suppose i define a new business area for a new location, what are the main settings i have to do?

Business areas are used for preparing internal balance sheets. There is no direct link between Company code and business area. A business area can contain two or more company codes, or parts thereof. Or, it be only one part of a single company code. In that sense, business area is independent of company code. Business areas are normally assigned to consolidated business areas which are again defined at client level.

CHART OF ACCOUNTS:

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TCODE: OB13

DEFINATION

This is a list of all G/L accounts used by one or several company codes.

For each G/L account, the chart of accounts contains the account number, account name, and the information that controls how an account functions and how a G/L account is created in a company code.

USE

You have to assign a chart of accounts to each company code. This chart of accounts is the operating chart of accounts and is used for the daily postings in this company code.

You have the following options when using multiple company codes:

You can use the same chart of accounts for all company codes

If the company codes all have the same requirements for the chart of accounts set up, assign all of the individual company codes to the same chart of accounts. This could be the case if all company codes are in the same country.

In addition to the operating chart of accounts, you can use two additional charts of accounts

If the individual company codes need different charts of accounts, you can assign up to two charts of accounts in addition to the operating chart of accounts. This could be the case if company codes lie in multiple countries.

The use of different charts of accounts has no effect on the balance sheet and profit and loss statement. When creating the balance sheet or the profit and loss statement, you can choose whether to balance the company codes which use different charts of accounts together or separately.

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Note: we can assign maximum of 3 chart of accounts for company code

Types of Chart of accounts

Operating chart of accounts

Group chart of accounts

Country-specific chart of accounts

Types of Chart of accounts

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Operating chart of accounts

The operating chart of accounts contains the G/L accounts that you use for posting in your company code during daily activities. Financial Accounting and Controlling both use this chart of accounts.

You have to assign an operating chart of accounts to a company code.

Group chart of accounts

The group chart of accounts contains the G/L accounts that are used by the entire corporate group. This allows the company to provide reports for the entire corporate group.

The assigning of an corporate group chart of accounts to a company code is optional.

Country-specific chart of accounts

The country-specific chart of accounts contains the G/L accounts needed to meet the country's legal requirements. This allows you to provide statements for the country's legal requirements.

The assigning of an country-specific chart of accounts to a company code is optional.

Questions:

1. how to create group chart of accounts

1. Create chart of account( Group chart ) through OB13.2. create Account Group through OBD4.3. Create Group G/L account with FS004. Assign the Group chart of account in operating chart of account OB13.5. When you are creating operating G/L you need to mention the group G/L a/c in the Operating G/L master data. FS00.

2. How to define Country chart of accounts?

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If you want to use country chart of accounts then do following.. 1. Create chart of accounts in transaction OB13.2. Assign chart of account in company code

Go to T.Code:OB62 , this screen Cty/ch/act Coloum is there you will maintain that coloum, 3.

3. ALTERNATIVE CHART OF ACCOUNTS?

The SAP name for alternate chart of accounts is 'Country Chart of Accounts'.  Here is the SAP help 

Account Group

Transaction code: OBD4

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The use of account groups is to differentiate various GL accounts.

An account group defines the number ranges of the GL accounts, the screen layout of the GL account master data in Company code segment (double click on any A/c group u can enter)

what is controls  in account groups.

Account group controls:2. Maintain Number Ranges for G/L Accounts with reference to Legacy Numbers3. Field status for G/L account level maintenance.

Note: from the above screen we can set FIELD STATUS for each account groupRetained Earnings Account

Transaction code: OB53

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Retained Earnings Account is used for carry forward the balance and you can use more than one retained earning account (one is mandatory). You can configure Retained Earnings through  T-CODE OB53.

Process:

1. Execute transaction FALGVTR for new GL balance carry forward (Transaction F.16 for Classic GL)

Select Retained earnings Account Button

SE16 table FAGL_CARRY_FORW - Last Balance Carryforward per Company Code/Ledger, is updated with new Fiscal year of balance carry forward for company code and ledger. (Table T882 for classic GL)

The table FAGL_CARRY_FORW (table t882 for classic GL) only contains the carryfoward for the last fiscal year in this example it is 2013

( You note that the closing balance for 2012 does not match the opeing balance for 2013 via transaction FAGLB03)

2. Check the cumulative P&L year-end balance of 2012 with report RFSSLD00The carry forward period of the retained earnings account contains the cumulative amounts of the year-end balances of the P&L accounts which are assigned to this P&L type.

In SE38 enter report RFSSLD00. Specify the P&L type (in this example the value is 'X') in the 'Free selections parameters of the selection screen. Enter Chart of Accounts, Company Code, Fiscal Year and Reporting Periods.

3. Check closing balance for the Retained earnings accountIn SE38 enter report RFSSLD00. To obtain the closing balance for the Retained earnings account for 2012 remove X from free selections P&L statmt acct type. Enter Chart of Accounts, Company code, G/L Account (retained earnings account), Fiscal Year and Report Periods.

4. - Display G/L Account Balance

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Using transaction FAGLB03 for new GL (FS10N for classic GL)Enter Account number (Retained earnings account) , Company Code, Fiscal Year (balance carry forward fiscal year) and Ledger

FISCAL YEAR

The fiscal year is a time period used to prepare the financial statements in organizations. Based on the business needs some organizations have fiscal years which start from Jan to Dec and some Apr to Mar etc. Fiscal year can be further divided into shorter time frames which can be months which are referred to as periods.

Transaction code: OB29

Fiscal year Variant:

The fiscal year variant determines the posting periods to be used by the company. SAP allows a maximum of 16 posting periods each fiscal year - normally 12 regular posting periods and 4 special posting periods are used.

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Special Posting Periods

The special posting periods are used for posting audit or tax adjustments to a closed fiscal year.

Shortened Fiscal year:

Fiscal year that contains less than twelve months.

A shortened fiscal yearcould be necessary in the following cases, for example:Establishment of a company

Changeover from a calendar year to a non-calendar fiscal year, or vice versa.

Shortened Fiscal Year UseWhen you define a shortened fiscal year, you have to make the following specifications:

A shortened fiscal year must always be defined asyear-dependent, since it can only apply to a specific year and must befollowed by a complete fiscal year.

You define a shortened fiscal year and the following or previous complete fiscal year in one fiscal year variant.

Year dependent Fiscal year variant:

A year-dependent fical year variant is the financial year for which the configuration settings are valid for that particular financial year. You generally use a year-dependent financial year when the previous financial year or succeeding financial year is a shortened financial year.

Calendar Fiscal Year:

A calendar fical year is a fiscal year that starts on the first day of a year (i.e January 1) and ends on the last day of the year (i.e., December 31)

Posting period Variant:

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Transaction code: OBB0

Posting period variant controls which posting periods (normal and special) are applicable for each company code.

It is possible to have a different posting period variant for each company code. The posting period variant is independent of the fiscal year variant. 

Document types

Transaction code: OBA7

Document types is used to classify accounting documents and distinguished business transactions to be posted.

Document type controls document number ranges

POSTING KEY:

Tcode: OB41

Posting key determine whether a line item entry is a debit or a credit as well as the possible field status for the tranaction.

TOLERANCE GROUP:

TRANSACTION CODE:

n this activity, you predefine various amount limits for your employees with which you determine:

the maximum document amount the employee is authorized to post

the maximum amount the employee can enter as a line item in a customer or vendor account

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the maximum cash discount percentage the employee can grant in a line item

the maximum acceptable tolerance for payment differences for the employee.

Payment differences are posted automatically within certain tolerance groups. This way the system can post the difference by correcting the cash discount or by posting to a separate expense or revenue account.

NUMBER RANGES:

Transaction code: FBN1

a two-digit number range is assigned to the document type in document type maintenance. This number range allows document numbers to be automatically assigned during posting.

Types of Number Range:

1. internal number range2. external number range

Internal number range

Internal number assignment occurs automatically through the R/3 System.

External number range

External number assignment is performed either by the user or an external system.Current number:

Note:

It is recommended that you do not transport number ranges. Number ranges should be set up individually in each client. Doing so will save a lot of headaches as your project progresses.

You set up number ranges by company code and year.

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FIELD STATUS :

Transaction code: OBC4

GENERAL LEDGER MASTER DATA:

TRANSACTION CODE: FS00

Types of Creation of General ledger:

1. Creation of G/L Account at Chart of Accounts Level : FSP0 2. Creation of G/L Account at Company Code Level : FSS0 3. Creation of G/L Account Centrally : FS00 

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There are 6 tabs in Creation of G/L Account Centrally : FS00 

1. type description2. control data3. create/bank/interest4. keyword translation5. information about Company code6. information about chart of accounts

Tabs in Creation of G/L Account at Company Code Level : FSS0 

1. control data2. create/bank/interest3. information about company code

Tabs in Creation of G/L Account at Company Code Level : FSS0 

1. type description2. keyword translation3. information about chart of accounts

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Note: if we assign group chart of accounts to operational chart of accounts “ group account number” is mandatory for creation of GL MASTER DATA IN FS00 TCODE.

Questions in transaction code: FS00

1. Only balance in local currency2. valuation group3. tax category4. posting without tax allowed5. reconciliation account6. alternative account no7. sort key8. line item display9. open item management10. field status group11. relevant to cash flow

1. What is the use of valuation group field which maintained in FS00 control data tab?Ans:- Here you can maintain valuation group for non open item managed GL accounts, so that this GL will be considered for foreign currency valuation 

2 . What is the use of interest section (with 4 interest related fields) which need to maintain in FS00 create/bank/interest tab?

Ans:- If you want to calculate interest on particular GL accounts, here you have to maintain to Interest indicator, so that this particular GL will be considered for Interest calculation.e.g. Interest on loans

what is the use of group account number?

The advantage that by specifying a number, a group of accounts can be assigned immediately to the balance sheet or P+L item.( when we are using Group chart of accounts here If a balance sheet or P+L

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structure is to be defined which is to be used for several company codes with different chart of accounts)

Post Automatically check box?

Indicates that this account can only be posted to by the system using account determination tables. 

Exchange rate difference key?

For the valuation of foreign currency balances, the system uses this key to find the accounts for gains and losses from the valuation. You specify which accounts valuation differences are to be posted to under the exchange rate difference key in the system. You could have valuation differences posted to the same P&L account for all balance sheet accounts or to different accounts based on the currency.

FS00: what about the field "House bank" in the tab "Create/banck/interest" ? 

Generally this field will be filled for the Bank Account that you are assigning in the House Bank, when you are creating the house bank.

TAX CATEGORY?

Tax category controls what types of taxes can be posted to with this account.

The possible entries based on the standard tax categories in the system are as follows:

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- indicates that only input tax postings are allowed with this account. Input taxes are sales and use taxes paid by the company.

+ denotes that only output tax postings are allowed with this account. Output taxes are sales taxes charged by the company to its customers.

* specifies that both input and output tax postings are allowed with this account.

< signifies input taxes on a tax account. This symbol should be used only for tax accounts.

< signifies output taxes on a tax account. This symbol should be used only for tax accounts.

Posting without tax allowed?

Set this indicator to allow both taxable and non-taxable postings to this account.

If you specify a tax category in the earlier filed without selecting this indicator, you will not be able to post non-taxable items (without a nontaxable tax category indicator) to this account.Line item display?

Line item display is used to see account balances by individual postings to the account.

If you select the open item management indicator, this indicator should also be set.

Sort key

Sort key is used for populating the assignment field in GL/VENDOR/CUSTOMER line items.

For example, for a GL account, if the sort key is document number, then the assignment field for each line item posted to that GL account will have document number in it’s assignment field. this data can be used for sort/clearing purpose

Assignment field

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The assignment filed is an additional information reference field in the line item.

Alternative account number:

an alternative account number forms part of a country chart of accounts which is used for country-specific reporting requirement. Usually the country chart of accounts turns out to be a subset of your operational chart of accounts and comprises the alternative account number assigned in the company code segment of your operative chart of accounts

Only balance in local currency. When this option is selected, the balance of that particular account will display the balances only in local currency even though it has posted in foreign currency. Simply speaking, that account balance does not display total of the foreign currency. The indicator must be set in cash discount and GR/IR clearing accounts.

It must not be set in reconciliation accounts for customers or vendors.

The indicator is usually set in balance sheet accounts that are not managed in foreign currencies and not managed on an open item basis

SAP recommends the usage of balance in local currency only for,

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(A) Cash Discount Clearing Accounts(B) GR/IR Clearing Account

Open item management:

Open item management is used for clearing accounts. Where we want to match one or more credits against one or more

Open item management used for B/s accounts.

Accounts with open item management must have “line item display” active.

we can only activate or de-activate open item management if the account has zero balance.

Ex:- Bank clearing account, Cash discount clearing account, GR/IR clearing account.

Relevant to cash flow:

Relevant to cash flow check box is selected for bank account, bank receivable, & Bank clearing account.

Reconciliation account:

Reconciliation account are general ledger account assigned to the business partner master record to record all transactions in the sub ledger.

all postings to the sub ledger accounts are posted automatically to the assigned reconciliation account.

you cannot post amounts directly to reconciliation account.

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Postings of general ledger

1. GL Account Posting : F-02

1. posting keys used for GL account postings: 40 : Debit50 : Credit

1. Document Date:

Document Date in Document:

The document date is the date on which the original document was issued.

Dependencies:

The document date must not be the same as the posting date on which G/L account balances or customer and vendor balances are updated.

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Example:

The document date can be the issue date of an invoice or a payment, for example.

Reference/reference document dumber:

The reference document number is used as a search criterion when displaying or changing document.

2. Posting Date:

Posting Date in the Document:

Date which is used when entering the document in Financial Accounting or Controlling.

Note:

The posting date can differ from both the entry date (day of entry into the system) and the document date (day of creation of the original document).

3. Reference4. Value date5. Business Place

Value date:

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Value date is used in bank accounts and bank sub-accounts.

Baseline date:

Baseline date is used to determine the due date of line item and is used for dunning programs, interest calculation and automatic payment programs.

You can configure the base line date with TCODE: OBB8.

The base line date will be one of the following dates:-

1. transaction date2. posting date3. document date4. entry date2. Document Display: FB03

Go to tcode: FB03 Give document number Give Company code Give Fiscal year

Enter.

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Entry View

In ENTRY VIEW, a document contains the document line items originally entered or transferred from original component.

if you choose document display(FB03), the document first displayed in the entry view.

General ledger view

in GENERAL LEDGER VIEW, a document contains document line items originally entered or transferred from original component.

split line items generated by document splitting , or additionally clearing items are displayed through general ledger view.

document in the general ledger always apply to a specific ledger.

Change Document: FB02

Go to tcode: FB02 Give document number Give Company code Give Fiscal year

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ENTER

Note:

1. using document change we can change value date Assignment field text

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GL ACCOUNT LINE ITEM DISPLAY:

TRANSACTION CODE: FBL3N

EXECUTE

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GL ACCOUNT BALANCE DISPLAY:

TRANSACTION CODE: FS10N Give GL account Give company code Give fiscal year Give Business area

Execute

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REVERSAL OF DOCUMENT:

If we have not entered a correct document. You reverse it.

A document can only reversing If:-

It contains no cleared items.

it contains only customers, vendor and GL accounts.

it was posted with financial accounting

all entered values ( such as business area, cost center and tax codes are still valid)

Transaction codes:

FB08 : Individual reversal (single document)

F.80 : Mass Reversal ( Multiple documents)

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FB08 : Individual reversal (single document)

Transaction code: FB08

Goto Tcode: FB08 Give document number: Give company code: Give fiscal year: Give reversal reason:save

The system reverse the document

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Note:-

Documents to be reversed cannot include already cleared items.

if you want reverse document that was already cleared, you need to reset the cleared document before posting a reversal.

FBRA: Resetting Cleared items.

What is reversal reason?

A reversal reason must be entered which explains the reversal & also controls if reversal date is allowed to differentiate from original posting date. 

01- Reversal in current period02- Reversal in closed period03- Actual reversal in closed period04- Actual reversal in current period05- Accrual06- Asset transaction reversal07- Incorrect document

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What is Void reason code? IN FB08?

You must define void reason codes for checks in the Implementation Guide for Accounts Receivable and Accounts Payable. You can use these reason codes later to void checks.

F.80 : Mass Reversal ( Multiple documents)

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PARKING THE DOUCMENTS:

Parking document is used to temporarily park or store a document until it is approved by an authorized persons.

Tcodes:

F-65: for parking a document

FBVO: to post parked document

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FBV2: to change parked document

FBV3: to display parked document

HOLD DOCUMENT:

If we don’t have proper data to post a document at the time we can hold the document.

Transaction code:

FB11 -- to post Hold documents.

Notes: we can hold the documents from many transaction codes

What is the difference between parked & hold documents?

in HOLD document you cannot change the posting keys and account. Where as in parking documents we can change them.

HOLD document take the external and temporary document number. Where as PARK document from the “Number Range Interval” assigned to that particular document type.

Hold document number can be used again once deleted.

Where as in case of parked document once used number cannot be used even the parked document is deleted.

RECURRING ENTRY

Recurring entries are business transactions that are repeated regularly, such as rent or insurance

a document containing the fixed data for every recurring postings (for example, posting key, account and amount… these 3 never change).

it does not update transaction figures. To store, system used number ranges “X1”

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Cross company code transaction cannot be posted with recurring entry program

Note:

1. the recurring entry program must be run at regular intervals within a specified period. The program selects all recurring entry original documents in which the date of next posting falls within the specified period, and the generates batch input session.

2. when the session is processed, an FI original document is posted.. the date of the next posting is changed accordingly in the “RECURRING ENTRY ORIGINAL DOC”.

We can create recurring entries and execute at month end by using these tcodes:

1. FBD1 – CREATE2. FBD2 – CHANGE3. FBD3 – DISPLAY4. F.56 – DELETING RECURRING ENTRIES5. F.15 - EXECUTING FOR A PERIOD6. F.14 – POSTING DOCUMENT FROM RECURRING DOCUMENT7. SM35 – PROCESS A SESSION.

Create recurring entry

Tcode: FBD1

GO TO TCODE : FBD1GIVE COMPANY CODE: GIVE FIRST RUN ON: GIVE LASTRUN ON GIVE ITNERVALINMONTHS GIVE DOUCMENT TYPE: GIVE CURRENCY: GIVE POSTING KEY:AS 40 GIVE ACCOUNT:ENTER

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GIVE AMOUNT GIVE TEXT GIVE POSTING KEYS: AS 50 GIVE ACCOUNT:ENTER GIVE AMOUNT: AS * GIVE TEXT: AS +ENTER SIMULATE AND SAVE SYSTEME GENERATES DOUCMENT NUMBER (FROM X1 RANGE)

RUNDATE:

Determines the document and posting dates of the transaction, as well as the entry date.

FIRST RUN ON:

Date from first recurring entry is to be carried out.

LAST RUN ON:

Date up until which the final recurring entry is to be carried out.

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POSTING OF RECURRING ENTRIES:

TCODE: F.14

GO TO TCODE: F.14 GIVE COMPANY CODE: GIVE DOCUMENT NUMBER[WHICH WE POSTED IN FBD1] GIV FISCAL YEAR GIVE SETTLEMENT PERIOD GIVE SESSION NAME EXECUTE ( SYSTEM GENERATES A SESSION) GO TO TCODE: SM35 PROCESS THE SESSION ENTRY WILL POSTED IN SYSTEM ( WE CAN SEE THE

ENTRIES IN FB03)

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TCODES USED IN RECURRING ENTRIES:

1. Creation of recurring entry: FBD12. Posting recurring entry: F.143. Process recurring entry: SM354. To display accounting document: FB03

SAMPLE DOCUMENTS

Sample documents as reference documents.

sample documents have separate number ranges. When you enter and post a sample document, the system stores the document, but does not update any transaction figures.

Enter sample Documents:

Transaction code: F-01

Go to Tcode: F-01 give document date: give posting date give data type give priod give company code give currency give posting key give account enter give amount give text

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give posting key give account enter give amount : as * give text: as + simulate and save.

Note:

In above transaction code post entry likes F-02.

Posting of sample documents:

Transaction code: F-02

Go to tcode: F-02 click on “POST WITH REFERENCE BUTTON” Give document number: (generates in F-01). Give company code give fiscal year give the option “DISPLAY LINE ITEMS” Enter. ( if we want you can change the details other wise) save

TCODES:

1. Creation of sample documents: F-012. posting of sample documents: F-023. Change sample documents: FBM24. Display sample documents: FBM3

What is the difference between recurring entries and sample documents?

1. Sample document is a document, which can be changed the values like amount.

We cannot change values in recurring entries

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2. Recurring document can post every month (or) on every period. Sample document we can post any time. Sample document is a reference document.

DEFINE PARALLEL CURRENCIES

Transaction Code: OB22

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Note: We can maintain two parallel currencies in additional to local currency.

Types of currencies:

1. Company code currency/Local currency2. Group currency

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3. Hard currency4. Index-based currency5. Global company currency.

Company code currency/Local currency

Company code currency is used for generating financial statements for external reporting.

Group currency

Group currencies are defined at client level. Group currencies are used to enable cross-company postings in controlling for company codes that uses different company code currencies.

Hard currency

Hard currencies are used for subsidiaries in countires with a lot of inflation. Hard currencies allows you to better valuate transactions in an inflationary economic environment.

Index-based currency

Index based currencies are used for statutory reporting purposes for subsidiaries in some countries that have an extreme amount of inflation.

Global company currency

Global company currencies are used for legal consolidation within sap. Many company codes can be linked to one company that has a global company currency.

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