Introduction To SAP

Introduction To SAPSAP is the world's number one ERP application. 'SAP' which is pronounced as 'S.A.P' stands for Systems Applications and Products in Data Processing. In 1970, 5 IBM engineers developed this software for Business Enterprises.SAP was released in 1972 Its head quarters is in Germany

The Advantages of SAP Platform is independent SAP. International Applicability Functionality Integration User FriendlinessRealitme, i.e. you can go to the lowest piece of information.SAP is available for almost all businesses.90% of fortune 500 companies have implemented SAP.

Organization structure SAP------------------------------------------------- | | Group Company | | Company Company code | | Units Businesses Area

Nestle

---------------------------------------------------------------------------------- | | | NUSA NPPC NWNA | | | | | | HYD BGL HYD BGL HYD BGL

Company Code & UseThe company code is the organizational unit that allows you to structure your enterprise from a financial accounting perspective.Any specific rules that control business processes such as payment transactions or correspondence.A company code should be depicted from a tax law, commercial or other financial accounting standpoint. It usually corresponds to a legally independent company.A company code possesses specific information that is important for accounting purposes.

Fiscal Year VariantThe fiscal year variant contains the number of posting periods in the fiscal year and the number of special periods.

In day to day life, we are following the year starting from January to December. This is called calendar year. But while maintaining financial records, some business organizations, maintain records from April to March, some January to December or some in other way. The period from which the financial records are maintained is called Fiscal year. Hence we need to define Fiscal year as per the need of our business organization.A Fiscal year is divided into posting periods. Each posting period is defined by a start and a finish date. Before you can post documents, you must define posting periods, which in turn define fiscal year.In addition to the posting period, you can also define special periods for year-end closing. In General Ledger Accounting , a fiscal year can have maximum of 12 posting periods and 4 special periods. Defining fiscal year is obligatory. One fiscal year can be used by several company codes.

When defining your fiscal year, you have the following options:-1) Your fiscal year is the calendar yearIn this case, you must only select the Calendar year field.2) Your fiscal year is not the same as the calendar year and is not year-dependentIn this case, you first enter the number of your posting periods in the Number posting per. field. To define your posting periods, select your fiscal year variant and select Periods on the navigation screen. On this screen, enter the month and the day of the period end and the period in each case.3) Your fiscal year is not the same as the calendar year and is year-dependentEnter the number of your posting periods in the field Number posting periods and select the field Year-dependent. To define your posting periods, select your fiscal year variant and select Periods on the navigation screen. The system asks for which calendar year your year-dependent fiscal year variant is valid. You then enter the month and day of the period end for each of your periods, and the periods themselves.It is also possible to determine names for the periods of a non-year-specific fiscal year variant. To do so, select your fiscal year variant and choose Period texts on the navigation screen. You can specify a three-character abbreviation (Jan, Feb, Mar...) and a 20-character long text (January, February, March).

Posting period VariantA period within a fiscal year for which transaction figures are updated.Every transaction that is posted is assigned to a particular posting period. The transaction figures are then updated for this period.

Open & Close Posting Periods In this activity you specify for each variant which posting periods are open for posting. Two intervals are available for doing this (period 1 and period 2). For every interval, enter a lower period limit, an upper period limit and the fiscal year.You close periods by selecting the period specifications so that the periods to be closed are no longer contained.

Fields of this Screen

a) Var (Col) :(Posting Period Variant. This describes the specifications for a posting period (for example, beginning and end). Each company code refers to exactly one variant. Therefore, as many company codes as you require can use the same variant.b) A (Col) :(Account Type or Mask )+ (for all Accounts)A AssetsD DebtorsK CreditorsM MaterialsS GLc) From Acct (col):(This field, together with the specified year, produces the beginning of the allowed posting period interval.)d) To Account (col):e) From Per.1 (col) :f) Year (col) :g) To Period (col) : (The value in this field and the specified year result in the end of the permitted posting period.)-k) AuGr : (Authorisation groupA posting period can be made available to only a limited set of users using the authorization group.A posting period can be successively restricted. If, e.g. 10 users have the posting period authorization with authorization group '0001', and 3 of these 10 users also with authorization group '0002'.If the period is only to be accessible to the 10 selected users the authorization group '0001' is entered in the posting period variant. Access can later be restricted to the remaining 3 users by entering '0002'.)

CHART OF ACCOUNTSChart of Accounts is a list of all G/L Accounts used by one or several company codes. For 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. There are three types of chart of accounts.1).Operating chart of accounts (obligatory) : 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 can use this chart of accounts. 2).Group chart of accounts : This contains the G/L accounts, that are used by the entire corporate group. 3).Country specific chart of accounts : This contains the G/L accounts needed to meet the countrys legal requirements.

GRAPHICAL PRESENTATION OF CLIENTS, COMPANY CODE AND CHART OF ACCOUNTSThe following diagram shows the relationship among the client, Company code, Chart of Account, Account group and GL Account. The highest level of entity being Client followed by Company code and chart of account, the Account group and at lowest level is the General Ledger Master.

DEFINING ACCOUNT GROUPIn order to organize and manage a large number of G/L Accounts better, they are arranged in account group. So when creating a G/L account, you must specify an account group.The accounts of an account group normally have similar business functions. You could, for example have an account group for cash accounts, one for Expenses accounts, one for revenue accounts, and one for other balance sheet accounts etc.The account group determines:-The interval in which the account number must beWhich fields are required and optional entries when creating and changing master recordsWhich fields are suppressed when creating and changing master data.It enables you to control the layout of screens.Account groups for G/L accounts are based on the chart of accounts.

CREATION OF G/L MASTER RECORDWe will create a Salary Account which false under EXPENSES Account Groups. The number range for EXPENSES Account group is 4000000000 to 4999999999. As we are creating the first G/L master in this account group, its number will be 4000000000.

TOLERANCE GROUPS FOR EMPLOYEESThis activity control the record (document) maintenance activities of the employees of the organization. The tolerance group defines - 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- the maximum cash discount percentage the employee can grant in a line item- the maximum acceptable tolerance for payment differences for the employee.

Fields of this screen a) Amount per document : (Maximum permitted posting amount per document for this user group. The posting amount is the total of all debit items or, similarly, the total of all credit items) b) Amount per open Item Account Item : (Maximum posting amount permitted per customer or vendor item for this user group. Note that the restriction does not apply to automatically created line items , for example, during payment settlements. c) Cash Discount per Line Item : (Maximum cash discount percentage rate which may be assigned by an employee of the user group. The percentage rate is checked during the entry, change and clearing of open items.)

d) Permitted payment differences :(Payment differences to our advantage are allowed up to the amount entered here. The amount always refers to the local currency. Payment differences up to the amount entered here are posted automatically by the system as increasing the profit. The system creates line items to show this. Note :- In addition to the amount, you also enter a percentage rate in the Percent field. The lower limit is valid. If you only want to use absolute amounts or percentage specifications, then you must enter the maximum value in every other field. Note that you define these limits for your customers/vendors and your employees. The lower limit is valid. Example The local currency is USD. You have entered 30 USD in the Revenue field and 1 in the Percent field. For incoming payments up to 3000 USD, you accept an overpayment of a maximum of 1 percent. That means, amounts of 0 to a maximum of 30 USD are tolerated, depending on the incoming payment amount. For incoming payments over 3000 USD, you accept an overpayment of up to a maximum of 30 USD.

Functions of the Reconciliation Account: Vendor Master RecordsWhen you post items to a subsidiary ledger, the system automatically posts the same data to the general ledger (see the following illustration). Each subsidiary ledger has one or more reconciliation accounts in the general ledger. These reconciliation accounts ensure that the balance of G/L accounts is always zero. This means that you can draw up balance sheets at any time without having to transfer totals from the sub ledgers to the general ledger.

You have to specify a reconciliation account in every vendor master record. Settings made in a reconciliation account also affect the vendor accounts:You can use the reconciliation account to configure the screens for posting items to vendor accounts. You can also use the reconciliation account to specify which currencies you can use in posting to the corresponding vendor accounts.

Vendor: Account GroupWhen you create a vendor master record, you are required to enter an account group. The account group determines: How numbers are assigned (externally by you or internally by the system) and the number range from which they are assigned Whether the vendor is a one-time vendor Which fields appear on the screen and whether the user can or must make an entry Whether there are any other levels on which data can be retained below the purchasing organization level (site and/or vendor sub-range), and if so, what these are In Customizing, you define the account groups that are to be available.

One-Time VendorsYou can create special one-time master records for vendors from which you only order goods once or very rarely.When you create a one-time vendor master record, you have to enter a one-time account group. The vendor-specific fields are then switched off. Information that the system usually provides as default data when you create documents does not appear and has to be entered manually.Unlike other master records, one-time master records are used for a number of different vendors so that you do not have to create an unnecessarily large number of master records. This is why no vendor-specific data is stored in the master record. When you create a purchasing document using a one-time vendor, the system automatically branches to a master data screen for you to enter vendor-specific data such as name, address, or bank details. This information is then stored in the document.

How to Create a Vendor

Enter FK01 into the SAP transaction code box

In the next SAP screen, leave the Vendor field blank. The system will assign a number when the data is saved.Enter the Company CodeEnter the Account groupOptional In the Reference section: In the Vendor field, you can enter a reference Vendor if the details are similar to the new Vendor.In the Company Code field, you can enter the reference Vendors company codewe will create a vendor without a reference.

Post Outgoing Payments(T.code-F-53)

MANUAL CHECK CREATION (T.codeFCH5)

Display Check Register (T.code-FCHN)

CHECK ENCASHMENT DATE UPDATION (T.CodeFCH6)

UNISSUED CHECK CANCELATION(T.Code-FCH3)

DELECTION OF CHECK ENCASHMENT DATE DATA(T.code-FCHG)

Maintain payment program: APP (T.code FBZP)There are six steps in this configuration: Configuration for company code. Configuration for paying company code. Configuration for payment method in country. Configuration for payment method in company code. Configuration for bank determination. Configuration for House bank.

Payment method for company code

All company codes

Paying company codes

Creation of sequential check lots (T.code-FCHI)

Bank determination

Assign payment method in vendor Master (T.code-xko2)

Post Vendor Invoice (T.code-F-43)

While analyzing accounts, the user found that certain document numbers are not appearing or are missing.For example, number range 17 is assigned to document type KA, which has the range 17000000001799999999 valid up to 9999.The current status shows that the next available number is 1790000000. During analysis, the user found that documents 17800000001780000010 are missing. The user wants to know why document numbers are missing.

??There are several reasons for missing document numbers. Here are two scenarios for this issue: 1. One possible reason could be that these documents were initially parked and later deleted. In this case, those document numbers cannot be reused. 2. The documents probably dont exist. SAP solutions will set aside numbers for use when the system detects multiple document creation. If someone is creating documents, the system will make available, for example, the next 10 numbers, reserving them, in essence. If the user only creates eight documents, two document numbers will be missing. You may use the following programs/reports to find out the reason for the missing documents: n Program RFVBER00 provides a list of transactions that failed while updating the database. n Program RFBNUM00 shows gaps in the FI number range.

The client printed 50 checks, of which 10 checks are spoiled or torn. Now the client wants to reprint the checks using the same APP. Is this possible? Or do you have to void those checks that are spoiled or torn? There may be times when the payment run has successfully posted payment documents and generated checks, but for some reason or other, the checks are not valid. In this situation, you have to void all of the printed checks and reprint them. To void and reprint

Follow these steps: 1. Execute transaction code FCH7 . You may navigate to FCH7 through the payment run. 2. Execute transaction code F110 , enter the payment run ID and run date, then follow the menu path: Environment Check information ChangeReprint Check (t-codeFCH7). 3. Enter the following details: n Paying company ode n House bank n Account ID n Number of the check to be voided n Void reason code n New check number 4. Choose the path: Check Reprint from the menu. You must follow this process in a situation where you have issued checks, but the checks are lost in post.

The user has executed transaction code F110 to pay 50 vendors, but he only has 20 checks left. Hence, when he ran the program, it printed the checks with random numbers. Now the problem is he is unable to cancel the payments, as there is no check number. How can he reprint or cancel the checks? The check printing program generated more checks than there are available check numbers. To handle this issue, follow these steps: 1. Before proceeding, ensure that you have maintained a new check lot through transaction code FCHI. Be sure to correct your check lot before you do anything. 2. In transaction code F110, enter the payment run ID and payment run date.

To handle this issue, follow these steps: 1. Before proceeding, ensure that you have maintained a new check lot through transaction code FCHI. Be sure to correct your check lot before you do anything. 2. In transaction code F110, enter the payment run ID and payment run date. 3. Go to the Printout/data medium tab and place the mouse curser on variant field against print program. 4. From the system menu, choose EnvironmentMaintain Variants as shown in Figure 3.7. FIGURE 3.7 Using transaction code F110 5. SAP R/3 will show the Maintain variant: XXXX screen, at the bottom of which you will see the section shown in Figure 3.8. FIGURE 3.8 Using transaction code F110 6. Select Void and reprint checks from payment run already printed . This procedure will void all of the checks generated through this particular payment program. If you want to void and regenerate a particular set of checks, enter the check numbers you want to void along with a void reason code. 7. Save the variant and come back to the payment run screen. Click on to generate the desired checks.Thank You