SAP FICO

I can create G/L at  Charts of Account but not at Company Code - True I can create G/L account in the required Company Code without creating in Charts of Account. -False I can create Vendor account in purchasing Organization without creating in general data.- False (Must have to create first in General data) I have to create G/L in Charts of account and then have to create in all company code.- False If a vendor account is not created in Company code level, it can not be used for posting. -True

from Ketan Patel Courtesy:http://www.slideshare.net/eddai

In case of voiding an issued check for some reason we can do it through FCH9. It does void check but payment is not going to get reverse. We have to reprint the check via FCH7. It allows to void and reprint the check. 

Checks can be printed wrong, ripped during printing etc. So it need to get void.  in SAP FICO system, we can void check through, FCH3. Give the check number you want to void (must be unused) and the void reason. Now when you want to assign new check it will not allow you to assign the same check number. 

In FBL1n, if we can see we can not find any check information. What if we want to pay via check ? We have to pass it as cash and then assign it to a check. For example, we want to assign a check for a line item paid in FBL1n. We want to assign a check for payment document. FCH5 is the answer. Enter payment document number, company code, house bank in FCH5 screen. It will also ask for check number. Here we need to the next check number available. SAP FICO System will automatically pull adrress and other data. Go ahead and save it. 

FCHI is the t code to create check lots for given house banks in SAP FICO system. Here we give company codes, house bank  (its the bank through which we want to pay) and account ID (for bank) Here we can set up check lots their to and from check numbers ranges.

In SAP FICO system, we have many vendors. It is not possible to check for each and every vendors and check for invoice due to clearing . So SAP system provides automatic clearing in which if system found certain criteria match then it will go ahead and clear line items automatically. Menu path is: Financial accounting --> A/P A/R --> business transactions --> open item clearing --> automatic clearing Here we set up criteria by account type, charts of accounts, by account ranges etc. F.13 gives proposal of line items to get clear automatically. If you are ok with the proposal then it will clear all the line items.

In SAP FICO system, we select special G/L indicator. It will select different G/L account for special G/L. To display dows payment line item, we go in the same T code FBL1n and select special G/L indicator. Here we can see down payment line item with A. While clearing, select special G/L indicator A to display it.

Line items need to get cleared once it gets posted. For example, if we pay to any vendor through F-53 in SAP FICO system, it stays uncleared. In SAP we can clear it via three ways. Manual clearing Clearing with posting  Automatic clearing 

In SAP system, Incoming screen is almost same as outgoing payment. Here we gives bank account through which we receive payment, Customer number and customer account D. All other concepts are similar as  Outgoing payment.

Outgoing payment have following categories: Partial Payment Residual Payment Charge of the difference/ Adjustment posting Clearing line items Discount adjustment

Charge of the difference in SAP FICO, used to pay partially when we are not going to pay the rest. For example, we want to pay $3700 for $4000 line item invoice. We are not paying $300 as we got goods for just just $3700 ( or goods cost of $300 are damaged). Here we do not use  Partial payment  or   Residual posting. For this scenario we use Charge of difference. Hit the charge of account tab and in next screen enter credit to ( Posting key  50) the appropriate  G/L Account . 

In the case of Partial payment , SAP system will keep all the partial payments and the invoices as OPEN- however they are linked through a field called "Invoice Reference". By sorting on invoice referencing you will know at any point of time all the payments, invoices and other line items against that invoice references. If you do the partial payment through " Residual payment " tab, SAP system will CLEAR the original invoice for the full amount and it creates a new line item for the remaining amount yet to be paid. It is the open item.

Basic Steps in Configuring the Lockbox 1. Maintain Control Parameters -OBAY 2. Maintain Posting Data - OBAX 3. Create Lockbox Addresses for House Banks - OB10 & FI12 Steps in processing of the Lockbox files 1. Test Data Generation for the Lockbox Program - RFEBLBT2 and RFEBLBT3. 2. Importing of the Lockbox file - FLB2 3. Display the documents posted - 4. Post Processing - FLB1

In SAP FICO, F-53 kept the line items open even if it got paid. How to clear them? Through F-44. Here give the vendor account number whom we want to clear line items. Process open items will redirect to the new screen. Select which line items to be cleared, simulate and save. It will clear the line items and gives a document number. Upon displaying document it shows a document with no line items but just header data. It is an important certification question that only clearing document display have just header data and no line items. All the financial accounting entries saved in tables BKPF and BSEG for header data and line item data respectively. So for most of the documents there is a link between these two tables, but for clearing document there is an entry in BKPF only.

Partial payment to a vendor posted through the same transaction code. Suppose we want to pay $1500 for $2500 line item. Select partial payment tab and then click on payment amount tab in particular line item. As we can see in the vendor line item display, SAP system will keep both the line items for $2500 and $1500. But $1500 line item as plus and $2500 line item as minus. It affect the balance as the payment done but it did not cleared anything. Partial payment  does not clear the line item, it will keep both line items open. So there are not any clearing document but it maintain invoice reference document for what invoice payment done. There is one more way of payment and that is  Residual payment Also go through  The difference between partial and residual payment. Now as the SA system kept the line items open how to clear them? in SAP FICO, we clear vendor open line items  through  F-44 Now suppose we want to make payment for the remaining $500 for the same li

F-53 is the t code for the vendor outgoing payment in SAP FICO Here we give bank account number  ( from which bank we want to pay) and vendor account (to which vendor we want to pay). SAP system will direct to all open items. In this screen we can select as many open items as we want depending upon the amount we selected to pay.  Upon simulating it will post transactions. SAP FICO system create a clearing document upon posting and took the document date.

SAP FICO system allows to show all line items by a vendor via t code FBL1n It will show all the line items of a vendor in a company code.

In SAP FICO System, Vendor master can be created at three levels: company code level, General data level and purchasing organization level. General data: General data , just name address etc. Can not be used for financial posting Company code level--> Useful for Financial posting Purchase organization data--> Useful by MM guys for purchase order and specifications For logistic levels we have to create in all three levels. If we create vendor master in FK01 it creates general data and at company code level. While XK01 creates general data, company code level and purchasing organization level.

SAP gives a simple screen to post G/L accounts as in F-02. Biggest advantage is there is no posting key needed. Major disadvantage is its just G/L, we cant post for customer/ vendor or assets. SAP FICO also have enjoy screens for customer and vendor posting . FB60 & FB70

Suppose you have two company codes NY and CA Now for any transactions of NY company code, CA is paying. How the transaction is going to post in both company codes. For example, CA company code is 1000 and NY company code is 2000. CA pays $2000 on behalf of NY If we post just first line and last line, SAP system will bring two other lines ( yellow lines) upon simulating it one more time. From where these two lines gets populated and how SAP, how does system know these account? It's from SAP FICO configuration. In spro, Financial accounting --> G/L --> business process --> prepare cross company code transaction

Suppose you have a clerk and he is not authorized to post due to company policy. SAP System allows to complete transaction but park it instead of post it. His supervisor ( who is authorized) can see the post, change it if he wants or post it if all correct. This function is important in SAP FICO.

Here is the place where we find the results from all the  Batch jobs. Upon execution, the screen will direct you to the result of the batch jobs selected as below. If you want to see detailed view of results then simply click on spool button and you will get detailed results. Now suppose you want to save the results in local file ( i.e. excel) then go to system--> list--> save--> local file. It will ask in which format you want to save. Select format and save in appropriate format locally. 

Batch in put session is the same for all the modules and processes. Its independent and it can be use for all the processes. In SM35, we can select the session for recurring entry or for any other scheduled process. We can manage sessions, lock it, unlock it, see logs etc. For running batch input session it gives us 3 options. Foreground, background and errors only. Foreground means system will roll all the transaction on the screen and we can see it. Background means system will process all the transaction in background. Errors only means the system will process in background but will show errors. For ease we select extended log and expert mode while starting a batch input session. Now once we run batch input session we need to know results of it right? Here it is how we get results of batch input session in SAP FICO.  Batch job overview

This is the second step in recurring entry configuration. In this t code we can execute all the recurring entries in particular settlement period for the company code. Here we have to give a name for the session or system will take default name and hold the session. Holding is important because if its not checked then system will go ahead and delete the session after the successful batch input session.We don't want to lose logs, document posted etc so check mark hold processed session.

In T code FBD1 we set up recurring entry templates.  We gives first run date and last run date in this. Run schedule gives flexibility to set up when we want to run recurring entries. Run date specify on which date we want to set up recurring entry against run schedule. We then set up debit and credit entries with the amount. It will store the template when we hit enter (save). Recurring entry does not update any books of account. We can get recurring entries templates from Account payable--> document --> reference document --> recurring entry document FBD2- Change FBD3- Display FBD4- Display changes

Valuation class in Accounting 1 tab in Material Master is the main link in FI-MM  Integration. The Valuation class along with transaction keys determine GL accounts those are specified in OBYC. We can group together differant materials with similar properties  in one valuation group. We can change the valuation class of the material only if the stock of the material is nil. 

Valuation is the main link in FI-MM integration Valuation in SAP can be done at company code level as well Plant level. If we define Valuation at plant level, we can have multiple price for the same material for different plants. While if we define valuation at company code level then we can have just one price for the material. Valuation also involves price control. Each material in SAP assigned with a material type in Material Management and every material is valuated either in Moving Average Price or Standard Price in SAP.

FI-MM integration setting is maintained in T-code OBYC In OBYC, there are various transaction keys such as BSX, GBB, WRX, PRD etc. In each of the transaction keys we need to specify GL accounts which gets automatically posted on the time of entry. FI-MM and FI-SD integration done always at charts of Account level. Lets see some of the factors: Valuation Valuation class

What is Recurring entry? Suppose you have 10 accountants in your client. They need to pay recurring payments such as interest payment, royalty payment, rent etc whose amount is fixed. With Recurring entry set up all your recurring payments can be configured to run it automatically. All your accountants do not need to remember all those payments.    With Recurring entry set up all your recurring payments can be configured to run it automatically.  They can use recurring entry configuration where they need to give payment date, amount so system will go ahead and run all those entries on the selected dates.  Recurring entry steps  It is 3 steps process: Enter recurring entry templates FBD1 Execute Recurring entries F.14 Run the Batch input session SM35

Certificate of withholding tax is the proof for the vendor and tax authorities that the tax was withheld. SAP gives 3 numbering method from which we can select which one to use. Method 1 includes numbering class assignment to company code with no distinction as to withholding tax types. Company Code Numbering Class 0001 A 0002 A Method 2 includes a combination of withholding tax types and company code to numbering class assignment. Company Code Withholding Tax Type Numbering Class 0001 T1 A 0001 T2 B 0002 T1 A Method 3 includes combination of withholding tax types/branches/company code  in the numbering certificate. Company Code Withholding Tax Type Branch Numbering Class 0001 T1 XXXX A 0001 T2 YYYY B 0002 T1 YYYY A

Withholding tax get posted as a withholding tax in any withholding tax type only if a vendor is defined as subject to taxes and a customer is defined authorizes to deduct the tax. Vendor & Customer Transaction: Financial accounting --> global setting--> withholding tax --> extended withholding tax--> company code --> Assign withholding tax types to company codes  For Account Payable, we need to mention for how long the company code is authorized to deduct withholding tax. For Account Receivable, we specify whether the company code is authorize to withhold tax. We make entry for each withholding tax types. Define the vendor as subject to withholding tax and customer as being authorized to deduct authorized tax. 

We can define the minimum and maximum amounts at one of two levels, depending on the setting on the corresponding withholding tax type for base amounts or withholding tax amounts . Define Min/Max Amounts for Withholding Tax Types Define Min/Max Amounts for Withholding Tax Codes Make the following settings : Withholding tax minimum amount If the withholding tax amount calculated is lower than the minimum amount you specify here, then the system calculates the withholding tax amount as being zero. Withholding tax maximum amount If the withholding tax amount calculated is higher than the withholding tax maximum amount you specify here, then the system uses this maximum amount in the withholding tax calculation. Minimum base amount If the withholding tax base amount is lower than the minimum base amount you specify here, then the system calculates the withholding tax amount as being zero. If the withholding tax base amount exceeds the minimum base amount specified

Automatic payment program steps for SAP FICO system are Setting up payment method per country Setting up payment method for company code Setting up all company codes Bank determination Assign payment methods for vendor account  The process for APP are: Parameters - F110 : System identify given payment run by date and identification. It is unique combination for the given payment. In the parameters field, give the company codes for which you want to run Automatic payment. Give payment method based on your payment method. For example, for check payment C and for wire transfer its T.Give next payment date. ( Why next payment date? : So it will consider all the transactions till that date for the payment run. ). We can also restrict the selection by document types, customer master and vendor master record in free selection tab. Maintain log for the proposal in additional log tab. Save printer information in printout/data medium and save the parameters. It shows the status of par

In one business transaction, several kinds of withholding tax may have to be withheld. The SAP System uses  withholding tax types  to reflect this. Several withholding tax types can be defined in the system; one or more can be assigned in the vendor master record. The withholding tax type governs the way in which extended withholding tax is calculated and is defined at country level. As far as the time of posting for withholding tax amounts is concerned, there are two different categories of withholding tax types: Withholding tax type for  posting at time of invoice Withholding tax type for  posting at time of payment Withholding Tax Type for Posting at Time of Invoice Make the following entries: General data Define the  name  of the withholding tax type. Calculation Define the details for calculating the withholding tax base amounts and the rounding rules for the withholding tax amount. You also determine whether the withholding tax amount is to be both

Suppose we posted a document and now we post one more document resembles like the earlier document we posted with same date same account except some values changed. To post a new document in reference with an old document click post with reference in FB02 --> it will be directed to FBR2 automatically.

If we have to enter more line items (anything 50,100,500 )data it may be painful and hectic. Instead of posting all line items one by one, we can post it fast by fast data entry. We can save all the debit/ credit entries and G/L accounts ( we can select our layouts depending on our need ) as an excel file and just copy paste it in fast data entry screen. This will facilitate to post all line items together and fast.

Document reversal is useful if some transaction gets posted wrongly. In SAP we cant go back and change the transaction but to offset a wrong posted transaction we can save a different transaction with revert debit/credit entries. We don't need to keep posting date if its in same posting period, but if its different period we have to give posting date. Important to note is Reversal of a reversed document is not possible in SAP FICO system. 

New G/L eliminates the separate reporting for all different integration with FI modules. New GL can generate a standard report with all of the information already integrated together. New GL offers the ability to create reports that can view information from a group level or company specific level. New GL offers following advantages: Real time integration between CO and FI Segment reporting  Document splitting ( Financial reporting using any  characteristics   Accelerated period end closing  Transparency  and Consistency  Simple representation of  parallel  accounting  New GL can display the parallel accounting using parallel accounts ( as in R/3) or using parallel ledgers.  Document Splitting function (online split ) allows to create financial statements at company level and if required for entities such as segments.

Credit risk categories provides a way to group together customers with a similar credit risk or credit rating. You assign credit risk categories to the credit management policies are working with each risk category. Financial Accounting --> A/R & A.P --> Credit management --> Credit control account --> Define risk category  OB01

A company code can only be assigned to one and only one credit control area. However, a credit control area can be assigned to more then one company code. Enterprise structure --> Definitions --> Financial Accounting --> Define credit control area  OB45 We can set up risk category and credit limit for the credit control area manually. Important tab is update , we usually select 12. It shows how the credit limit gets calculated. One important thing is SAP system creates credit master record itself whenever we create customer master data. In order for SAP system to create automatic credit master record, we need to give at least one option in default data for automatically creating new customers. Three options are: Risk category, Credit limit & Representative group.

SAP's credit management allows you to grant credit terms. Based on the credit limit and open A/R value of particular customer, SAP can automatically block delivers from being sent to customers who exceed the credit limit we have set for them. For credit management configuration we need to  set up some pieces of configurations. First step is  Credit Control Area

IMG --> Financial Accounting --> Financial Accounting Global Settings -->  Withholding Tax‡ Extended Withholding Tax --> Basic Settings --> Check  Withholding Tax Countries IMG --> Financial Accounting --> Financial Accounting Global Settings -->  Withholding Tax‡ Extended Withholding Tax --> Basic Settings --> Define official Withholding tax codes Make the following settings: General data Define the description of the withholding tax code, and where necessary, the official withholding tax key. Official withholding tax keys are used on official forms when reporting taxes, You define the official withholding tax key in a separate section of the Implementation Guide for  Financial Accounting : Financial Accounting Global Settings  ®  Withholding Tax  ®  Extended Withholding Tax  ®  Basic Settings  ®  Define Official Withholding Tax Keys . Base amount Define the portion to be taxed. This percentage rate is used to determine the final withhold

Tax that is charged at the beginning of the payment flow in some countries. Usually, the party that is subject to tax does not pay the withholding tax over to the tax authorities himself. When a customer that is authorized to deduct withholding tax pays invoices from a vendor subject to withholding tax, the customer reduces the payment amount by the withholding tax proportion. The customer then pays the tax withheld directly to the appropriate tax authorities To calculate, pay, and report the withholding tax, the SAP System provides two functions: ·        Classic withholding tax  (all Releases) ·        Extended withholding tax (from Release 4.0) For each company code, you can decide whether you want to use classic or extended withholding tax. Since the extended withholding tax option includes all the functions of classic withholding tax, SAP recommends the use of extended withholding tax (see below: Table of Classic and Extended Withholding Tax Functions). Classic and