1

 

SAF FI Frequently Asked Questions 2

1. Where to assign activity type in cost centers?  OR how to link cost centers & activity types?

>> There is no direct assignment.  You plan the output for a cost center first in kp26.   Then you've to plan the value of that cost center which you budget for a period in kp06.   Planned Activity expenditure / Planned Actvty qty gives yoa planned act rate which you can use to valuate your activity confirmations in mfg ordrs.   You can also define your own prices,but you have to run the price revaluation if you want to revaluate your actual activity prices.

2. For stat. key figure what is the significance of sender & receiver cost elements & cost centers?

>> Stat key fig are not real account assignments.  In simple traditionl terms it is the base to allocate or define praportions with which the cost is allocated.  SKFs are used to calculate the debit on a receiver object.  These values can be used for assessing common costs which are used by all the other cost centers.

3.  How SKF works .. Kindly give me T Codes Also.

>> You create & plan SKF. Create using KK01 & PLAN the parameters of SKF in KP46

SAP Tips by: Dhiraj

1. Does any one know what is Software life cycle, it was a question asked in an interview.

2. In GL master we have a option "Balance in local currency" and "Account currency".  What does it mean?

3. In movement type(MM),  what is value & quantity string I know it updates values and quantities in GL with mix of valuvation class, transaction key modifier and GL A/c.  But how does it work when doing a mvt type?

4. In FI when doing Special GL transaction what determines the fields statues of the screen and why do we have so many screens followed by it.  Is it determined by Posting Keys? is it to determine Account type for which we are using the Special GL and debit and credit?

Q: Software Life Cycle,

Ans: it is nothing but Road Map - five phases  like, Project Preparation, Blue print, Realisation, Final preparation and Go-live support.

Q:  In GL master we have a option "Balance in local currency" and "Account currency".What

2

does it mean?

Ans: Account currency is that the GL account in which currency do you want to maintain. if you decided that you want maintain in company code currency, you can post any currency in that account. If not, you want to maintain separate currency for that GL then exchange rate difference will come because the conversion rate.

Balance in local currency - some GL account can't be maintain on open item basis and can't in foreign currency like clearing account and discount account etc., in such case you can assign this indicator to show the balance in local currency.

Q. In movement type(MM), what is value & quantity string I know it updates values and quantities in GL with mix of valuvation class, transaction key modifier and GL A/c. But how does it work when doing a mvt type?

Ans: Basically, the system does not know which GL has to be updated with what. here, we are giving a direction to the system to update the data.

What you said is correct, the system will update the value and qty in the material master.  You would have seen some more fields also, like Movement indicator, consumption, value string and transaction event key etc.,

While creating a PO, the system will take the Movement type as a base, with MT, it will identify the MI(movement indicator - used to define whether it is goods movement for production order, purchase order, delivery note etc), and it will identify the consumption,( like it is assets, or consumption or sales order) and it will identify the value string ( it is must to assigned to movement type, through allocation of value string to movement type, system will automatically identify the GL ) and it will post the entry (dr/cr)in the GL based on the transaction and event key figure which is used to determine the debit and credit entry of a GL

SAP Tips by: Elangovan

4.  In Field Status Group there are options like Suppress, optional, Required,  Display. So that it is followed by so many screens and it is determined by posting key. Its both debit (or) (Both) credit.

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SAF FI Technical Interview Questions 1

1. Tell me about FI Organizational structure? Ans:     Client                |       Operating Concern                | Controlling area1       Controlling Area 2          | Co. Code 1 Co. Code 2     | Bus area 1  Bus area2  Bus Area3  Bus Area 4

2. How many Normal and Special periods will be there in fiscal year, why do u use special periods? Ans: 12 Normal posting period and 4 special periods are in the fiscal year which can be used for posting tax and audit adjustments to a closed fiscal year.

3.Where do you open and close periods? Ans: PPV is used to open and close the periods based on a/c types considering GL Accounts. Tr. Code. OB52.

4.What do you enter in Company code Global settings? Ans: 4 digit Alphanumeric key. Name of the company City Country Currency Language Address

5.What is document type, and what does it control? Examples. Ans: Document type is nothing vouchers containing line items. Several business transac! tions can be identified within a particular document type. It controls the document number ranges. It controls the Header part of document IT controls the line item level of the document Helps filing of physical document 

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6. What is posting key and what does it control? Ans: These are special classification keys. Two character numerical key it controls the entry of line items. Posting key determines Account type, Debit/credit posting, Field status of transaction.

7. What is field status group, what does it control?  Ans: FSG is mandatory field in ! GL Creation. You use this field to define which fields are displayed when you post business transactions to a G/L account.  A field may have one of the following statuses. - Suppressed - Display - Optional - Required

8. What is chart of account and how many charts of accounts can be assigned to a company? Ans: Chart of account 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.

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 co! mpany codes which use different charts of accounts together or separately.

9. What does definition of a chart of account contains? Ans: chart of account key Name

5

Maintenance language Length of the GL Account Number Controlling Integration Group chart of accounts (Consolidation) Block Indicator

10. Can one COA be assigned to several companies? Ans: yes. One COA can be assigned to several companies.

11) What is account group and what does it control?  Ans: Account group determines which fields you can configure on the G/L master record. It is necessary to have at least two one for B/S and another one for P&L a/c. It controls the Number ranges of GL A/C. The status of fields of the master record of GL belongs to company code area.

12) What is reconciliation account; can you directly enter documents in that a/c? Ans: When you p! ost items to a subsidiary ledger, the system automatically posts the same data to the general ledger. Each subsidiary ledger has one or more reconciliation accounts in the general ledger.  We can’t use reconciliation account for direct postings.

13) How do you control field status of GL master records and from where do you control!  Ans: Field status variant is maintained all FSGs.

14) What are the segments of GL master record? Ans: - COA Segment A/C group Nature of account Short text GL a/c long text Trading partner Group Account Number -  Company code segment Account currency Tax Reconciliation a/c for a/c type OIM,LID,FSG.

15) What does Field status group assigned to a GL master record controls? Ans: It controls the account assignments that are made to the account. Specifically the field status group controls whether postings to cost centers, internal orders, profitability segments and so on are required, not allowed (suppressed), or optional.

16) What is Country and operational chart of account? Why do you use group chart of

6

account? Ans: Operational chart of account – Day to day activities It is mandatory. Country COA – It’s used for legal specific requirement of each country. It’s additional and optional. Group COA used for consolidation of Company codes. This is for group consolidation purpose.

17) What are all the segments in a Customer/Vendor master record? Ans: Segments in Customer           Segments in Vendor -      General Data segment            General data segment -      Company code segment         Company code segment -      Sales area segment                 Purchasing organization Segment

18) What is open line item management? What do you mean by clearing open line items? Ans: Open item management is further reconciliation function. OIM allows you to display the open and cleared items and amounts in an account. OIM should be used if an offsetting entry is made for every line item posted in the account. The a/c is reconciled and cleared against another account. Ex. Salary clearing account and GR/IR Clearing account.

19) What is residual payment and part payment? Ans: Residual payment it clears original invoice with incoming amount and create new line item for remaining outstanding amount. Partial payment it leaves the original invoice amount and creates new line item for incoming amount.

20) What is internal and external number ranges? Ans: Internal Number Ranges: Doc. No will be provided by the system automatically in serial order allotting the next available progressive number. The number must be in numerical. External Number ranges: Doc. No will be given manually by the end user. System will not lock no automatically in this case. User can pick the number randomly. Number may be an alpha numeric.                  *-- Shaannthi S.

Financial Questions

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SAF FI Frequently Asked Questions 1

1. Whether any FI doccument will be created during PO(Purchase order)? If please

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mention the entry also.  2. What factors differentiates from one dunning level and other dunning level? 3.  APP There will be many banks in a house bank. If the payment should be maid from particular bank GL account.  Where it is need to configured. 4. What are various types of servers in SAP R/3 5. Can anybody explain me FI-MM integartion.pl explain in detail  i.   movement types ii.  account class iii. material types 6. Maximum no. of dunning levels are created? 7. In how many ways APP  is configured 8. What is diff between AAM, Recurring entries, Sample doccument?

Find here with the answers for your questions

1.Whether any FI document will be created during PO(Purchase order)?If pl mention the entry also?

Ans: There is no document that is created in FI side during PO. But in controlling there can  be a commitment posting to a Cost Center. The offsetting entry is posted at the time of GR.

2.What factors differentiates from one dunning level and other dunning level

Ans: The most important thing that differentiates the dunning levels are the dunning texts. The dunning text defines the urgency of the dunning notice. The other things can be the dunning charges, minimum & maximum amounts etc. 

3.APP

There will be many banks in a house bank. If the payment should be maid from particular bank GL account. Where it is configured.

Ans: There can be several accounts in the same house bank. We should assign the GL accounts exclusively at the time of creating the Bank master data and the bank accounts. Accordingly we can do the bank determination in FBZP for the individual banks and the corresponding sub accounts. 

Tr code for Defining bank : FI12. 

4.What are various types of servers in SAP R/3?

Ans: The Typical SAP landscape looks something like figure 1.4 below:  

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5.can anybody explain me FI-MM integartion.pl explain in detail

i. Movement types: 

Classification key indicating the type of material movement (for example, goods receipt, goods issue, physical stock transfer).

The movement type enables the system to find predefined posting rules determining how the accounts of the financial accounting system (stock and consumption accounts) are to be posted and how the stock fields in the material master record are to be updated. 

ii. Valuation class

Assignment of a material to a group of G/L accounts

Along with other factors, the valuation class determines the G/L accounts that are updated as a result of a valuation-relevant transaction or event, such as a goods movement.

The valuation class makes it possible to:

- Post the stock values of materials of the same material type to different G/L accounts  - Post the stock values of materials of different material types to the same G/L account 

iii. Transaction/Event Key

Key allowing the user to differentiate between the various transactions and events (such as physical inventory transactions and goods movements) that occur within the field of inventory management. 

The transaction/event type controls the filing/storage of documents and the assignment of document numbers. 

iv.  Material Type

Groups together materials with the same basic attributes, for example, raw materials, semifinished products, or finished products.

When creating a material master record, you must assign the material to a material type. The material type you choose determines:

- Whether the material is intended for a specific purpose, for example, as a configurable    material or process material  - Whether the material number can be assigned internally or externally  - The number range from which the material number is drawn  - Which screens appear and in what sequence 

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- Which user department data you may enter  - What procurement type the material has; that is, whether it is manufactured in-house or    procured externally, or both 

Together with the plant, the material type determines the material's inventory management requirement, that is:

- Whether changes in quantity are updated in the material master record  - Whether changes in value are also updated in the stock accounts in financial accounting 

6.Maximum no. of dunning levels are created?

Ans: 9 levels maximum.

7.In how many ways APP  is configured?

Tr Code: FBZP

8.What is diff between AAM,Recurring entries,Sample doccument?

Account Assignment Model:

A reference for document entry that provides default values for posting business transactions. An account assignment model can contain any number of G/L account items and can be changed or supplemented at any time. In contrast to sample documents, the G/L account items for account assignment models may be incomplete.

Recurring Entries:

A periodically recurring posting made by the recurring entry program on the basis of recurring entry original documents.

The procedure is comparable with a standing order by which banks are authorized to debit rent payments, payment contributions or loan repayments.

Sample Documents:

Special type of reference document. Data from this document is used to create default entries on the accounting document entry screen.

Unlike an accounting document, a sample document does not update transaction figures but merely serves as a data source for an accounting document.

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1. A chart of accounts ( Multi Choice)

A. can be allocated to multiple company code

B. can be defined as the group chart of accounts

C. only contains definitions for G/L accounts

D. can only allocated to one company code.

2. A client. ( Single Choice)

A. may only contain a single chart of accounts

B. may contain multiple charts of accounts

C. may only use one currency type

D. may only have one controlling area

3. Identify the correct statement(s) relating to how the mainbusiness processes are integrated in the SAP R/3 System. ( MultiChoice)

A. A purchase requisition is a documented request to purchasegoods or services. In SAP it can be created manually orautomatically.

B. A goods receipt is the recording of the movement of materialsinto the warehouse. In SAP, a financial document which updates theinventory account and an accrued liability account is created

C. The Invoice receipt and verification process compares thevendor invoice with the purchase order and goods receipt. However,the corresponding financial transaction must be entered through thefinancial module of R/3.

D. In SAP, payment processing reduces the liability to a vendor

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and a company¡¯s cash balance, records discounts taken and disbursespayment.

E. A customer delivery is the transfer of the ownership ofgoods. A customer delivery includes, creation of a deliverydocument, picking the goods for shipment; physically transferring thegoods to the customer and financially recording the goods issue.

4. Identify the correct statement(s) regarding organizationalelements within the R/3 System. ( Multi Choice)

A. The Sales area combines the sales organization, distributionchannel, and division.

B. The Purchasing Organization is responsible for the purchasingfor the only one plant.

C. A plant is a location in which inventory quantities and valuesare stored or manufactured.

D. A Controlling area can comprise several company codes usingdifferent chart of accounts but must operate in the same currency.

E. A profit center is used to generate income statements andoperating profit statements.

5. Identify the correct statements. ( Multi Choice)

A. All areas of an organization that are to be integrated intothe R/3 Production system should be included under one client.

B. The term ¡°client dependent¡± refers to tables or data thatrelate only to the client which was accessed during the log onprocess.

C. Due to the integrated nature of SAP, there are certain coreorganization element that cut across the modules. Client and companycode are two of these core elements.

D. To determine the number of clients required, the focus isplaced on data access and sharing strategies.

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6. Which of the following statements is true ? ( Single Choice)

A. A Company code can belong to more than one controlling area.

B. A plant must be allocated to a company code

C. A controlling area and a company code must have the same localcurrency.

D. A business area and a company code are assigned to each otherin the corporate structure IMG

7. Identify the correct statements relating to theImplementation Guide( Multi Choice)

A. When creating a project in the IMG, the application areas andcountries are selected from the Enterprise IMG

B. The number of implementation activities can be reduced bycreating Project IMG views, such as a view for ¡°mandatory activities¡±

C. The Project IMG must include all customizing activities for allR/3 applications.

D. The SAP Reference IMG is generated for the application modulesto be implemented in a company and for the different countries

E. Customizing transactions can be accessed from the SAPReference IMG, Project IMG and the Project views.

8. What characteristics do roles have in the Workplace? ( MultiChoice)

A. Roles describe business processes in a company

B. Roles contain a collection of activities that a user who isassigned to this role can execute

C. Roles represent a range of executable functions in a companythat users can assign themselves to

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D. The authorizations required to execute the assigned functionsare automatically linked to roles

E. Roles contain MiniApps

9. What content elements of the mySAP.com Workplace are provided?(Multy)

A. The Workplace contains role-based navigation options forR/3 transactions, reports, and other links to various systems.

B. The Workplace is a completely personalizable workingenvironment.

C. The Workplace contains role-specific information and role-based access to the Marketplace.

D. The Workplace is used exclusively as a LaunchPad forEmployee Self Service with information for employees.

E. The Workplace contains personal Favorites.

10. What are MiniApps?(Multy)

A. MiniApps are small applications that are started automaticallywhen the Workplace is called.

B. Miniapps are small applications that can be called from theWorkplace.

C. MiniApps are small applications that communicate continuouslywith the implemented SAP products

D. MiniApps are Java Applets that are loaded from the Workplaceto the user client.

E. MiniApps are role-specific applications that can contain moreactivity options.

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11. What system tool allows you to add graphics, re-arrange fields,add pushbuttons and change input fields into radio buttons?(Single)

A. GuiXTB. GuiCapture

C. SAPGui

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D. SAPShow

E. Profile Generator

12. Which of the following can you add to a Favorites list?(Multy)

A. Files

B. Transactions

C. Web address

D. Reports

E. User menus

13. What does SAP call the new asset value display transaction?(Single)

A. Item Explorer

B. Accounts Explorer

C. Accounts Viewer

D. Asset Viewer

E. Asset Explorer

14. Which of the following statements about year-end closing arecorrect?(Multy)

A. You carry out year-end closing before the fiscal year change.

B. During year-end closing, the program checks if the year-endclosing can be carried out.

C. Once the year-end closing was successfully completed, the systemautomatically changes certain entries in Customizing (closed fiscal

year)

D. You cannot create and post to new fixed assets until The year-end closing is successfully completed

E. You can only conduct year-end closing on June 30 or December 31of each year.

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15. What steps have to be completed before you can generate assetclasses form G/L accounts? (Multy)

A. Account selection

B. Account determinations

C. Number range intervals

D. Screen layout variants

E. Asset classes

16. For each depreciation area you need to specify whether you want to(Multy)

A. post depreciation at periodic intervals to the general ledger

B. post asset values at periodic intervals

C. automatically post values onlineD. use index classes

E. post to business areas

17. Please click on the button next to the correct answer.(Multy)

A. The business area can run across many company codes, i.e.all company

codes can post in all business areas.

B. A company code may belong to more than One Controlling Area.

C. Each company codes uses exactly one chart of accounts and onechart of

depreciation.

D. Business areas are used to create internal balance sheets andincome

statements.

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18. The time of the first acquisition posting to the asset sets thefollowing fields

in the master of asset(Multy)

A. the depreciation start date per depreciation area

B. the cost enter to be hit through depreciationC. the date of capitalization

D. the depreciation key

19. Usually one Chart of Depreciation is defined for each country.

At which level is the chart of Depreciation created?(Single)

A. at Company Code level

B. at Client level.

C. at Chart of accounts level.

D. at Business area level.

E. at System level.

20. What are the functions asset class?(Multy)

A. Asset number assignment.

B. Cost Center determination.

C. Screen layout

D. Account allocation

E. Definition of default value.

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21. Which of the following statements about asset data transfer froma previous

system are correct?(Multy)

A. Transferring asset data ¡®during the fiscal year¡¯ is onlypossible on july 1 of

the given year.

B. When you transfer asset data ¡®during the fiscal year¡¯, thesystem

automatically determines replacement values and insurable valuesusing batch input.

C. During the asset transfer, you can enter either the APC orthe net book value.

D. During the asset transfer, you can specify the order inwhich the depreciation are apper.

E. When you transfer asset data ¡®during the fiscal year¡¯,youmust enter the last depreciation posting period from your previous

system in the SAP R/3 System.

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22. Intergration with MM: An asset purchase order is created inPurchasing. The goods receipt is posted on a value basis. Invoice

verification then posts the invoice.

What is the name of the auxiliary account used for all of thesetransactions?(Single)

A. MM/FI clearing account.

B. GR/IR clearing account.

C. Asset purchasing clearing account.

D. Asset acquisition clearing account.

E. Vendor asset acquisition clearing account

23. What additional functions do asset classes offer?(Multy)

A. Specify required entry fields for asset master dataB. Enter default values for asset master data

C. Enter default values entries for depreciation areaD. Enter allowed entries for user fields

E. Define allowed company codes

24. Which of the following statements about manual depreciation (forexample unplanned depreciation in FI-AA) area true?(Multy)

A. You cannot post manual depreciation in FI-AA.

B. Manual depreciation is posted immediately after entry(realtime).

C. Manual depreciation is initially shown as a planned value afterentry and only posted when the depreciation posting report is run.

D. Manual depreciation usually only applies to depreciationareas which you choose when you enter the document.

E. After entering manual depreciation in FI-AA., you also need toenter it manually in FI/CO.

25 .Which correspondence extracts all items in the chosen period froma customer¡¯s account displays the balance carried forward balance and

a closing balance of the account ?(Single)

A. Payment advice

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B. Payment notice

C. Account statement

D. Dunning notice

26. Which of the Following statements about automatic payment arecorrect ? (Multy)

A. In automatic payment procedures, all incoming invoices as of thesecond dunning level are paid automatically

B. Direct debiting or bank collection can be used in automaticpayment procedures to clear customer invoices

C. Open items posted to G/L accounts can be cleared using thepayment program

D. Special G/L transactions(down payment)can be posted using thepayment program

E. The payment program can pay vendor invoices using wire transfersand checks

27. Imagine the following scenario:A company wants to execute apayment run on a daily basis and process several company codes at thesame time. If the amount exceeds US$ 1000, the vendors are to be paidby bank transfer, amounts less than US$ 1000 are to be paid by check.

The customer has two house banks and wants all checks to be processedby bank A and all¡¦ (Multy) ¹®Á¦¹Ì¿Ï¼º

A You store variants for print programs within customizing. Here youcan specify that the information is to be output to a data carrier

B. You specify, per house bank, whether payments are to be madeby check only or also by transfer

C. You specify the payment method from within the application,inthe master record

21

D. The payment proposal of the automatic payment program canonly be displayed

E. You can precisely schedule the print program from within theapplication

28. According th which criteria does the payment program determineand select open items (Single)

A. posting date and baseline date

B. document date and posting date

C. baseline date and payment terms

D. posting date and cash discount periods

E. posting date and payment terms

29. Which of the following statements are true with regard to thecustomizing setting for banks in the automatic payment run ? (Multy)

A. The sequence of the banks for processing outgoing payments isselected randomly

B. You can only determine one payment method per house bank

C. You can select several payment methods per country

D. You can specify by bank and method the anticipated number of daysbefore the bank account is debited

E. You can determine the banks to be used for payments according to

22

postal code

30. Which of the following factors does the systems take into accountin a payment run ?(Multy)

A. Fiscal year variant

B. Payment method specifications in the IMG

C. Specifications in the vendor master records

D. Information in the documents(incoming invoices)

E. Specifications made when maintaining the payment run parameters

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31. Which of the following statements are correct ?(Multy)

A. When creating a House bank, you do not need to specify thecountry.

B. The payments program can use a different House bank for eachdifferent payment method

C. A House bank account can be defined in more than one currency

23

D. House bank master data must be created in advance, beforeassigning the House bank to a payment method in the payment programconfiguration

E. A house bank can be assigned to a business area within thepayment program configuration

32. When entering a document using a foreign currency, which date isused to determine the exchange rate if the translation date is notentered ?(Single)

A. Posting date

B. Document date

C. Entry date

D. Baseline date

33. where are posting periods defined?(Multy)

A. Posting period variant.

B. Fiscal year variant.

C. Field status variant.

D. Closing period variant.

34. which of the following statements supports the reversal of adocument?(Multy)

A. The original document contains no cleared line items.

B. Documents originating in other modules should be corrected thereto allow the changes to flow naturally through to financialaccounting.

C. If a reversal date is not specified, the system reverses the

24

document using the posting date of the document to be reversed.

D. A new document number is created for the reversal document.

35. Choose the correct statements regarding recurring documents.(Multy)

A. When creating a recurring document, the valid time period must bedefined.

B. The posting date is determined by either the run date or the runschedule.

C. Field values can be changed in recurring document.

D. After running the recurring document posting, the next run datecannot be displayed.

E. The original recurring document can be deleted from the batchinput menu.

36. In manual bank statement customizing, you must (Multy)

A. Define an internal activity

B. Define a posting rule

C. Define a posting type

D. Define a currency

E. Define an account symbol

37. Which of the following statements about manual planning arecorrect?(Multy)

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A. The planning type determines which bank accounts the plan amountto be inputted to.

B. The expiration date shows how long the payment advice is includedin planning.

C. The payment advices for editing can be changed, archived, orreactivated.

D. Archived payment advices are included in planning till the valuedate.

E. The retention periods are determined by the bank account name.

38. Bank accounts should be controlled as follows when CashManagement is in use:(Multy)

A. Open items are managed for both the main bank account and thebank clearing account.

B. Both the main bank account and the bank clearing accountpermit line item displays.

C. The main bank account and the bank clearing account use thesame sort key.

D. The value date in the field status string for both the mainbank account and the bank clearing account must accept entry.

E. The cash-relevance flag in the master records for both themain bank account and the bank clearing account must be set.

26

39. Which of the following statements about creating customer masterrecords are correct? (Multy)

A. An account group always gets assigned to a customer.

B. The company code is always a required entry.

C. The account number may be assigned by the user externally.

D. Information on each screen may be defined in configuration asmandatory, suppressed or optional, depending upon the account group.

E. Information on each screen may be defined in configuration asmandatory, suppressed or optional, depending upon the company code.

40. Which of the following statements are correct? (Multy)

A. A customer master is divided by client level and company codelevel.

B. In case of one-time customer you have to enter the customer¡¯saddress in the document itself.

C. Address, control data, and reconciliation account are included inthe client level of the customer.

D. The most efficient way to create master records is to work withthe external number range not internal number range.

41. Which of the following statements are correct? (Multy)

A. If a customer is also a vendor, the system can includeoutstanding Accounts Receivable invoice items in payment program.

B. If a customer is also a vendor, the system can includeoutstanding Accounts Payable invoice items when you clear incomingpayment receipts for the customer.

C. The reconciliation account defined on the customer masterrecord is an account used to reconcile CO transactions back to FI.

D. All customer belonging to the same account group must beassigned to the same reconciliation account.

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E. The alternative payer is used to transfer outstandingreceivable item to the alternative payer¡¯s account.

42. Bulk change of line item - this function allows you to change awhole group of line items simultaneously, instead of having to changeindividual items in the documents. What data can you change usingthis function?(Multy)

A. The reconciliation accountB. The company code

C. The payment terms and payment block

D. The house bank and payment method

43. Which of the following order types are internal orders?(Multy)

A. Result analysis orders for posting accrual costs in CO.

B. Capital investment orders for creating assets.

C. Maintenance orders.

D. Sales orders for make-to-order function

E. CO production orders.

44.Which of the following statements are correct regarding InternalOrders?(Single)

A. Planning transactions are allowed under any status.

B. Once an order has been released, only closing entries can bemade.

C. Transactions can be allowed or disallowed depending in theorder status.

D. Additional order status categories can be created in theorder master.

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45.Which of the following statements is true about CO productionorders?(Multy)

A. It is an internal order used to control production from acost accounting point of view.

B. Bills of materials and routings are required.

C. It is not possible to post goods movements to and from theorder.

D. You can post primary costs from Financial Accounting to theorder.

E. You can post secondary costs from overhead calculation tothe order.

46.Which statements are true regarding direct and indirect activityallocations? (Multy)

A. If both the amount of the activity used by the receiver andthe total output activity quantity of the sender can be measured,then indirect activity allocation is used.

B. If the amount of activity consumed by the receiver is notmeasured, then indirect activity allocation is used.

C. Manual activity input planning cannot be performed if actualactivities are allocated indirectly.

D. If direct activity allocation is used, the total outputactivity quantity is determined by summing all of the activityquantities allocated.

47. The primary cost element is one type of master data inControlling. Before you can create a new primary cost element,certain prerequisites need to be fulfilled.

Which of the following conditions must be fulfilled BEFORE you cancreate primary cost elements?(Multy)

A. The controlling area must be defined.

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B. The cost center must be defined.

C. The G/L account must be defined.

D. The plant must be in the system.

E. The business areas have been defined.

48. What is the difference between distribution and assessments?(Multy)

A. Distribution can be made for both planned and actual figures;assessments cannot.

B. Distributions can be made using statistical key figures;assessments cannot.

C. Distributions are used when the original cost information isnecessary on the receiver; assessments are used when this informationis not necessary on the receiver.

D. Distributions are made using the original primary costelements; assessments are made using secondary cost elements

What is APC?

APC stands for Acquisition and Production costs. Acquisition means any asset which you may acquire/ purchase externally. It includes invoice price and other related exp. Associated with it like customs, octroi, freight which you add and arrive at total cost of acquisition for capitalisation of the asset.For ex Say a computer. The total cost which you incurr for the acquisition of the computer including installation will be your APC

Production cost means any asset which is created internally within the organisation. This is normally created by means of AUC and you go on adding cost to the AUC as and when you incurr exp. for the same.For ex. say addition to the office building. Therefore APC incudes any external acquisition or internal construction of exp. which needs to be capitalised.

In OADB under 01 deprn area Acquisition & prod Cost tick is activated. *-- Marazban D. Dalal

This is umapathy, I have intereview tomorrow, if anybody have taken interview with any company, kindly let me know what the questions they will be asking, how will be the interview. How the questions will be on configuration, implementation side and other questions plz.. share with me.

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Pl. prepare yourself on the following broad lines:

Implementation exp.: Brief about the project you did: w.r.t. the main activity of the client, How many plants they had, What modules were implemented, Who were the implementers, What’s the implementation team size, How many were in your module team, What’s your role in the project with respect to the activities you partook in the project, The Enterprise Structure with regard to the no. of Company Codes, any Business Areas or Profit Centers defined, Cost Centers defined, What’s the period of the project, When did they Go-Live?, Any issues you’d solved during ‘Support’ phase?

Questions on conceptual understanding: a) SAP R/3 definition and 3-Tier Architecture b) ‘Real time integration’ advantage of SAP c) ASAP methodology d) Solution Manager e) Client / Company / Company Code / Business Area f) Business Area vs Profit Center Approach g) How effective will be the Financial Statements generated through Business Areas h) With Holding Taxes vs Extended WHT i) Field Status Concepts (G/L master fields controlled through Account Group and Document entry through Field Status Group set in the G/L master) j) Special G/L transactions k) Open item management l) Reconciliation Accounts m) Subsidiary Ledgers n) Sort key o) Negative Postings Allowed p) Special periods q) Only balances in local currency r) Important Posting keys for G/L, A/R, A/P, AA, Stock Entries s) Assessment vs Distribution t) Org. Structure for FI u) Org. Structure for CO v) Product Costing: How the values flow in the system

Configuration: a) Extended With Holding Taxes configuration steps – right from creation of WH Tax Types, Codes to Annual Return b) FI-MM Integration (OBYC configuration with particular reference to Off-Setting entries) c) FI-SD integration d) Down Payments transactions e) Interest – Balances / Arrears f) Asset Accounting: Asset Class, Main Asset, Sub-Asset, Group Asset, Dep. Areas, Dep. Key,

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Transaction No.s (100- External acquisition, 210 – Retirement with Revenue, etc.), Imp. Transaction Codes.

General questions: a) Educational Background b) What influenced you to go in for SAP career? c) Functional Career d) Present earnings vs Expected pay e) Inclination to relocate

1. How can be or in what way baseline date is important in Automatic Payment Program run?

The Baseline date is used to calculate the due date by taking into account the payment terms. On the APP, the baseline date helps to pick the relevant invoices for payment. During the APP run when invoices are pulled into the run, the system checks the ‘Next Payment Date’ before picking the invoices to be paid.

2. Please tell me the procurement cycle how it works?

Procurement cycle – a sales order is placed on a requirement made by a customer, after which it is passed on to create a purchase order (this could either happen based on the requirements on the SO, or a planned SO). the value flow gets passed on to FI at the time of goods movement. In the case of SD, the impact on FI happens only at the time of billing.

3. Difference between Depreciation ,Accumulated Depreciation and APC? What is APC?

Depreciation – a decrease in the value of an asset due to wear and tear Accumulated Depreciation – the total amount of depreciation calculated on a particular asset. APC – refers to Asset transactions other than depreciation

4. What is GR/IR?What journal entries we should pass for this?

The GR/IR – the goods receipt/Invoice Receipt account is used to post to whenever goods that are not yet invoiced have been received or when invoices arrive b4 the the delivery of goods.

During the time between the invoice being created and delivery of goods, there can be a timing difference, in order to accommodate this timing difference, a GR/IR account is maintained temporarily to record the flow .

5. What are the accounting entries take place in MM and SD?

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Value from MM to FI is defined in OBYC…. on the material master the flow of values are assigned on the Costing, acctg, etc tabs where the system helps to post the necessary stock values into the appropriate GL accounts. helps to determine, the GL accounts updated when there is a movement of goods.

SD-FI - VKOA

6. Can we assign one Controlling area to two different Company Codes (but the company codes having different fiscal years/different currencies

Company code should have same financial year, may have different currencies.

You can assign 2 or more company codes to one controlling area as long as the chart of accounts are same. Furthermore, if you have different fiscal year variant in the company code, then make sure that the number of period remain the same.

7. While posting transaction, can we give cost centre / production order at time.

Yes it is posiiable , but in such situation cost centre will be real and production order is stastical.

If you assign both cost center and Prd Order then since Prod. Order are real co object, Cost center entry would be statistical.

8. Which Master data uploads will be done?

The question is not very clear. If you are talking about CO Master data. Then Cost center need to be uploaded. You can use Data Transfer Workbench or write abap for it.

9. Can we run Payment Programe giving ( Hdfc vendor detailes ) City bank in Payment run programe?

Yes can be possible , this can resolved through ranking order and bank optimization in FBZP.

You use use further selection in proposal paramater, if you would like to filter the open item based on the city

10. What does document header control?

Field status.

11. After entering a document can you delete the entry? Can you change the document? Which fields’ can/not is changed?

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Document header cannont be changed, after posting the document you cannot change. only if you want to change the document the reseversal entry.

12. What is a special GL transaction?

The transaction other than A/P and A/R is called the special g/l transaction for ex: Bills of exchange, Interest payable , aqusition

13. How do you reverse cleared documents?

By doing reversal posting.

14. What is base line date? Why is that used? Can this be changed?

For paymentterms it is used. base line date is the due date.

15. How many statistical objects can be selected in when you post an FI document? Where CCtr, PCtr, OM are active?

GENERAL LEDGER

Information Systems

1.  Structured Account Balances (Balance Sheet & P&L Account  in FS Version Format)               

                                                         S_ALR_870122792.  GL Account Balances (Totals & Balances )             S_ALR_870123013.  GL Line Items                                        S_ALR_870122824.  Statements for GL Accounts, Customers & Vendors      S_ALR_87012332 5.  Document Journal                                     S_ALR_870122876.  Compact Document Journal                             S_ALR_870122897.  Line Item Journal                                    S_ALR_870122918.  Display of Changed Documents                         S_ALR_870122939.  Invoice Numbers assigned Twice                       S_ALR_8701234110. Gaps in Document Number Assignments                  S_ALR_8701234211. Posting Totals Document Type wise                    S_ALR_8701234412. Recurring Entry Documents                            S_ALR_87012346

Master Data

13. Chart of Accounts                                    S_AL:R_8701232614. GL Account List                                      S_AL:R_8701232815. Display Changes to GL Accounts                       S_ALR_8701230816. Financial Statement Version                          FSE2

CASH & BANK REPORTS

1. Check Information List                                FCH6

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2. Check Register                                        FCHN3. Check Number Ranges                                   S_P99_41000102

TAX REPORTS & REGISTERS

1. List of Internally generated Excise Invoices          J1I7

2. Capital Goods Transfer of Credit                      J2I8                           3. List of GRs without Excise Invoice                    J1IGR  

4. List of SubContract Challans                          J1IFR

5. CENVAT Register                                       J2I9(Monthly Return under Rule 57AE of the Central excise Rules from which Monthly Return under Rule 7 of the CENVAT Credit Rules 2001)

6. Registers : RG 23A/C Part I &II , RG1, PLA            J1I5,J2I5,J2I6ACCOUNTS RECEIVABLE

Information Systems

1. Bill Holdings (Bill of Exchange Receivable List  with ALV facility)                                                         S-ALR_870099872. Customer Balances in Local Currency                   S_ALR_870121723. Customer Line Items                                   S_ALR_870121974. Due Dates Analysis for Open Items                     S_ALR_870121685. List of Customer Open Items                           S_ALR_870121736. Customer Evaluation with Open Item Sorted List        S_ALR_870121767. Customer Payment History                              S_ALR_870121778. Customer Open Item Analysis (Overdue Items Balance)   S_ALR_870121789. List of Customer Cleared Line Items                   S_ALR_8701219810.List of Down Payments open at key date                S_ALR_8701219911. Debit & Credit Notes Register – Monthly              S_ALR_8701228712. Customer wise Sales                                  S_ALR_87012186                           

ACCOUNTS PAYABLE

(Note : Similar Reports available for A/R are available for A/P also)

1. Vendor Balances                                       S_ALR_870120822. Vendor Debit/Credit Memo Register                     S_ALR_87012287

Is there a Report displaying Master data, that is a list of vendors showing name, address, payment method, etc ( everything about vendor).   Is their any report like that and what's the table name to display all vendor master data too. 

Go to this menu: Financial Accounting -> Accounts Payable -> Information System -> Reports for AP accounting -> Master Data.

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How to get Report of Withholding Tax along with Vendor Name.  What is the T-Code or Path for this report?

You can get the withholding tax report for vendor by using these t.codes: S_P00_07000134 - Generic Withholding Tax Reporting  S_PL0_09000447 - Withholding tax report for the vendor

Which reports we can use for the receivables to be checked on daily basis?

Go to SAP Easy Access main menu. Go To Accounting -> FI Acc -> customer(receivables) -> information system -> reports .  Here you can get all the standard reports for receivables.

All the Inventory transactions will look for the valuation class and the corresponding G.L. Accounts and post the values in the G.L accounts. For Example: during Goods Receipt

Stock Account - Dr G/R I/R Account - Cr Freight Clearing account - Cr Other expenses payable - Cr During Invoice Verification

G/R I/R Account - Dr Vendor - Cr

When the Goods are issued to the Production Order the following transactions takes place:

Consumption of Raw Materials - Dr Stock A/c - Cr

When the Goods are received from the Production Order the following transactions takes place:

Inventory A/c - Dr Cost of Goods Produced - Cr Price difference - Dr/Cr (depending on the difference between standard cost and actual cost)

When the Goods are dispatched to customer through delivery the following transactions takes place:

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Cost of Goods Sold - Dr Inventory A/c - Cr

When the Goods are issued to a Cost Center or charged off against expenses the following transactions takes place:

Repairs and Maintenance - Dr Inventory A/c - Cr

When the Goods are stock transferred from one plant to another, the following transactions takes place:

Stock A/c - Dr (Receiving location) Stock A/c - Cr (Sending location) Price difference - Dr/Cr (due to any difference between the standard costs between the two locations)

When the stocks are revalued, the following transactions takes place:

Stock A/c - Dr/Cr Inventory Revaluation A/c - Cr / Dr

When the Work in Progress is calculated the following transaction takes place:

Work in Progress A/c - Dr Change WIP A/c - Cr

Physical verification /shortages and excesses : Shortages/excesses on authorizations shall be adjusted using the physical inventory count transaction.

*-- Shashikanth Teegala - skteegala@yahoo.co.in

What is the difference between company and company code? A company is the organizational unit used in the legal consolidation module to roll up financial statements of several company codes. The Company Code is the smallest organizational ! unit for which a complete self-contained set of accounts can be drawn up for purposes of external reporting.

How many chart of accounts can be attached to a company code? One or more Operative Chart of Accounts can be assigned to a company code.

A COA must be aasigned to a company code. This COA is the operative COA and is used in both FI and CO. One Chart of Account can be assigned to many Company codes i.e., Multiple company codes can either share the same or have separate COA. But a company code (Country

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specific Company code or International Company code) can have a country specific COA also along with Operative COA. The link between the regular COA and the country COA appears in the alternate number field of the G/L master record.

Eg: If a company's subdidiaries are located in both US & Mexico. We need to configure 2 Company codes - one for US and another for Mexico,for eg U100 and M100. The same way we create 2 COA's one for US & one for Mexico, USCA and MXCA. Mexico has different govt reporting requirements than the US so we will need to define a company code specific to Country Mexico and also create a country specific COA to be used, in addition to normal COA. In tcode OBY6(Comp Code Global Parameters) of CC M100 we define normal COA i.e.,USCA in Chart of Accounts field and MXCA in Country Chart/Accts field.

What are substitutions and validations? What is the precedent? Validations are used to check settings and return a message if the prerequisite check condition is met. Substitutions are similar to validations; they actually replace and fill in field values behind the scenes without the user’s knowledge unlike validations that create on-screen msgs to the user.

What is a controlling area? The Controlling Area is the central organizational unit within CO module. It is representative of a contained Cost Accounting envt where costs and revenues can be managed.

Define relationship between controlling area and company code? A controlling area may include one or more company codes which must use the same operative chart of accounts as the controlling area. A Controlling Area can contain multiple company code assignments but a single company code can be assigned to only one controlling area.

What is a fiscal year variant? Fiscal Year is a period of 12 months and SAP provides 4 special periods to posting adjustment Entries. Fiscal year determines posting periods. Posting periods are used to assign business transactions. Fiscal year may be year dependent or year independent.

What are special periods used for? The Special periods in a fiscal year variant can be used for things like posting audit or tax adjustments to a closed fiscal year.

What do you mean by year dependent in fiscal year variants? Year Dependent: the financial year is same as calendar year. Starting from 1st Jan to 31st Dec (where posting periods and the calendar months are equal) Year Independent: the financial year is different from calendar year Starting from 1st April to 31st March (where the posting period months are not equal to calendar year months)

What are shortened fiscal year? When are they used? Shortened Fiscal Year: a financial year, which has less than 12 periods.

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What are posting periods? The Posting period variant controls which posting periods, both normal and special, are open for each company code. It is possible to have a different posting period variant for each company code in the organization. The posting period is independent of the fiscal year variant.

What are document types and what are they used for? Document type is the identifier of differentt account transactions like SA for G/L,AA for Asset Accounting etc.The doc. Types controls things like type of the account that can be posted to, the number range assigned to it, and required doc header fields.

How are tolerance group for employees used? Tolerance group stores Posting amount defaults. Tolerance groups are assigned to User ID’s that ensures only authorized persons can make postings.

What are posting keys? State the purpose of defining posting keys? Posting keys determine whether a line item entry is a debit or a credit as well as the possible field status for the transaction. Posting keys are SAP delivered. If u want changes like making additional fields optional on payment type posting keys then the best possible action is to copy the posting key that needs to be modified and then modify it.

What are field status groups? Field status groups control the additional account assignments and other fields that can be posted at the line item level for a G/L account.

SAP Financial Tips by : Komal

Q1-What are adjustment postings and its use? Give t.codes and paths if possible?

Answer: fb50,f-02 and others could be used for adjustments. These adjustments are to correct any financial representation that has already been booked into the accounts.

Q2-Suppose I have purchased goods of 10 units(raw materials or semi-finished goods) worth Rs10000 from vendor A (suppose) and also made payment for the same. Now during the manufacturing process, it was observed that 3 units are defective, now my question is how do we deal with the defective units in SAP as I have already made payment for the 10 units(i.e Rs10000).

Answer: If you have a GRN against these materials, then the same can be return delivered. An appropriate movement type needs to be configured for the same. As for the payment, raise a credit note on the vendor.

* Using Debit Memo you can get the money for defective 3 units. *-- Gnan Eswari

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Q.3-We always copy company code or we can create manually also? If possible give reasons also.

Answer: There are loads of tables that get copied over when copying co codes. This might be incomplete in a manual copy, and hence the manual route is not advisable.

Q.4-In case of APP, when bank master data updated?

Q.5-Suppose in 2004 I have depreciation key 'AB&in 2005 depreciation key I have changed to"CD". In what way my balances would be affected like balances of depreciation,accumulated depreciation,assets etc.

Answer: The difference in the depreciation that is posted already, and what should be posted with historical effect will be posted in the current accounting period.

Q.6 How many chart of accounts can be assigned to company code we can assign company code to chart of account through OB62? Now my question is in what way we can assign three types of chart of account to company code in one transaction code (I might be wrong plz correct me)

Answer: Three, although the group and country chart of accounts are optional. The group chart of accounts is assigned to the operational chart of accounts, and the only mandatory CoA is the Operational CoA.

Q.7 How many financial statement versions can be assigned to co.code?

Answer: As many FSVs as you want can be assigned to the co code i.e. 1:n as of Co Code: FSV.

I have created Company Code and all other configuration related to the CCode. Also in MM I have created purchase order, created vendor, material etc. I couldn't activate the PO due to the following error messages in red:

1. MAINTAIN TOLERANCE LIMITS FOR TOLERANCE KEY PE ACCOUNT ASSIGNMENT 2. CONTROL INDICATORS FOR CONTROLLING AREA DO NOT EXIST.

I have assigned controlling area to company code and I could see the controlling area in existance via master file and gl verification.

1. MAINTAIN TOLERANCE LIMITS FOR TOLERANCE KEY PE ACCOUNT ASSIGNMENT ----> Please follow this link --> SPRO ---> MM---> Purchasing --> Purchase Order --> Set Tolerance limits for price variance --> Here you have to set for Tolerance keys PE and SE. Just copy them from std co. code.

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2. CONTROL INDICATORS FOR CONTROLLING AREA DO NOT EXIST. ----> In Controlling --> General Controlling --> Maintain Controlling Area --> Maintain Controlling Area --> Activate Components/Control Indicators --> You need to check if you want to activate the order management/activity based costing/commitment management etc.

Tips by : Shrikant Deshpande, Kishore

What are the steps for integration of FICO with other modules SD, MM etc. ?

Some basic information :

FI-MM: The integration between FI-MM happens in T-code OBYC.

1. When PO is created :

---- No Entry -----

2. When GR is posted

Inventory Account dr (Transaction Key BSX in OBYC) To GRIR account (T.Key WRX in T-code OBYC)

3. When Invoice is posted

GRIR account Dr. Vendor account Cr.

4. Payment made to Vendor

Vendor A/c Dr To Bank Clearing A/c Cr.

Points to know : Movement Types, Assignment of Movement types to T-keys (T-code OMJJ), Value string (I also need some information on this) , OMWN and OMWB transactions.

---

There is a close integration b/w FI & MM, actually document flows from MM to FI in the following areas such as, 1. Movement Types: Used to enable the system to find the predefined posting rules determining how the accounts

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of financial accounting system are to be posted & to update the stock fields in the matrl master data.(Goods Receipt, Goods Issue, etc) 2. Valuation Class: Assignment of material to grp of gl account, used to determine the gl accounts that are updated as a result of goods movement. 3. Transaction/Event key: Used to control the storage or filing of documents & assignment of documents.Used to differeniate b/w various transactions such as goods movement tht occur in inventory. 4. Material Type: Each material should assign mtrl type in mtrl master record used to update whether changes made in qty are updated in material master record & change in value also updated in stock account. FI-SD Integration: The integration is done in T-code VKOA

1. Sales Order Created

---No Entry---

2. PGI done (Goods issue)

Cost of Goods Sold Dr (Configured in OBYC GBB T-Key) To Inventory Account

3. Billing document released to Accounting

Customer Account Dr. To Sales Revenue Account (ERL T-key in Pricing procedure)

Note : The GL account is assigned to this ERL in VKOA

4. Payment Received

Bank Clearing A/c Dr Customer A/c Cr.

Points to Know : Good to understand the pricing procedure and how the different transaction keys are used like ERL, ERS etc.

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Tips by : Kishore, Balaji.C

What is GL At Company Level and Chart of Accounts

Please explain what is meant by general ledger at company code level and chart of accounts level?

General Ledger has two segments i.e., 

1. Chart of Accounts Data (T.Code= FSPO)and 2. Company Code Data (T.Code =FSSO)

GL account master records are divided into two areas to that company code with the same chart of account can use the same GL account. The chart of account area contains the data valid for all company codes, such as Account Number.

The Company code specific area contains data that may vary from one company code to another, such as the currency in which the account may be posted.

Lets, suppose there are not segment both the segments are combined, at that time it will become difficult to copy the Company Code data because the fields may vary in company code. for example Currency, though you have same Chart of Account Data.

Because, GL Accounts has two segments, it will be easy to copy Chart of Accounts data from A company code which matches your requirement and Company Code data of B Company code and you can create a separate chart of account in C company code.

To copy Chart of account data and Company code data seperately, see Alternative method of creating GL Master in IMG screen.                                                                                   *-- Satish

What is Hold and Parking of Document?

Hold Document:  It is for short term and is used when tranaction Dr or Cr is uncertained and generally its is used for external purpose.  eg: Advance from potential customer

Parking Document: Its is for longer period generally used for internal purpose.  eg: Advance made for employes.

What is the main purpose of this document. Why we are using this one to in FI?  How it is useful?

Parking documents is used when we need to get any clarification regarding some account.

We can temporarily park or store this document till we get it cleared or approved.

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Then we can post it.

Remember.... parking does not update the accounts....... it just stores the document..... whereas posting will update the accounts....( for example.... the reducing/increasing of the account balances).

The TC for Parking Documents is F-02 -> enter the required details ->go to the menu (at top )  ->Document-> Park.

To post a parked document : FBV0-> go to the menu Document-> Post.

Other TCs used pertaining to Parking of Documents are :

FV50 : Post / Delete : Single Screen Transaction FBV2 : Change FBV3 : Display FBV4 : Change Header FBV5 : Display Changes FBV6 : Refuse

SAP FI Tips by : Viji Balakrishnan  

F-63 Park Document  - Only transfer amounts in document curr. in invoice

In F-63, there is a checkbox "Only transfer amnts in document curr. invoice", may I know what is the purpose of this checkbox & under what circumstances we will use this checkbox.

"Only transfer amounts in document curr. in invoice" 

If we sets this indicator it translates the doc. currency into local currency at the time of parked document.

If we not set this indicator it translates the doc. currency into local currency when posting of document.

Eg: We are parking a document with doc. currency in USD @40- the next day we are posted that document then it is @42- the system takes the exchange rate from the header which was specified in the parked document @40- only. If we not set this indicator it will take at the time of posting of document @42

Difference between Posting Key and Field Status Variant

What is the use of Field Status Variant. Why it is required?

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What is the difference between "Posting Key Variant and Field Status Variant". Why both the things are required to define as both control the fields. What specific fields are controlled this fields.

'Posting Key Variant ' Controls- fields of Posting Key and 'Field Status Variant' controls fields of G/L Account.Fields of G/L Account which are controlled by FSV can see in T.Code OBC4 and Fields of Posting Keys in SPRO-FAGS-Document- Line Item.  Both can controls common fields, then SAP applies 'SDRO' rule.

SDRO rule. The fields can be Suppressed, Displayed, Required, Optional.

Posting is key controls   - which type of accounts can be posted to  - whether the line item is debit or credit  - and the field status of the document line item

Where as FSG (group into Field status Variant) controls only the the document line item for that account.

There are only three field status options during document entry:  - Suppressed  - Required  - Optional

If both Posting key and FSV has the same field as Required and optional, system uses the link rules, takes the one which has the highest priority(in this case required).

But in case of Master record Field status which is controlled by Account Group, there are 4 options of field status: - Suppressed - Display - Required - Optional

Account group defines:   a. length of gl account number   b. no. ranges of the gl account numbers   c. field status of the GL account master data in the company code segment.(which fields to appear when you create a gl account) (to control...double click on your GL account group in Screen transaction code OBD4) 

Posting key defines:   a. whether the line item is a debit or credit   b. to which type of account the amount should be posted to(ex: when you use posting key 40,  you will be able to post to gl accounts.  When you use Posting key 01, you will be only able to post to customer account. 

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 c. document screen layout during posting of a document. (which fields to appear in a document...double click on the posting key and select field status and make the entries as required /optional etc) 

Field status group defines:  Document screen layout during posting of a document. (which fields to appear in a document...double click on the field status group and select fields and make the entries as required /optional etc) 

LOGIC: you assign field status variant to the company code, FSV is a bundle of field status groups. 

ex: in FSG G001 you have made the text as required entry...you assigned the field status group g001 to cash account..so when you use cash account and try to post a document it will definitely prompt you to enter the text (text made as required.) 

Both FSG and PK control the same feilds in a document.There is no dominance between FSG and Posting keys..but we should know the allowed combinations.... 

If text is made required in PK and suppressed in FSG..the system will issue a error msg..Rules for PK...and FSG....is set incorrectly for SGTXT field. 

Permissable combinations: 

Pk          R/S     O/S   R/o     R    S  O 

FSG         S/R     S/O   o/r     R    S  O 

Result   e   SD      RD    NP   NP  NP 

  R  = required    s   = suppressed    e   = error  SD  = Suppressed dominates  Rd  = required dominates   np  = no problem. 

Tips by : Gangadhar, Jagadeesan

Difference between Cost Centers and Internal Orders

Would any one please tell me that  1. What is the basic difference between Cost Centers and Internal orders?  2. I understand that their functionality is same like assessments, distribution etc. then why there are divided into Cost Centers and Internal orders?  3. How the data flows from Cost Centers and Internal Orders? ie is it first into Internal

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orders then to Cost Centers or Vice versa? or else the data is maintained independently?  4. Does settlement means running the Assessment cycle and distibuting the costs to various cost centers from an internal order?  5. How you determine the cost of an Order or cost for an order? ie how an Cost in Order is determined? 

A cost center as you will know is for fixed reporting for a long time span as part of your company structure (cost center usually = department or work center). 

An internal order is used to accumulate cost for a specific project or task for a specific time period. An internal order is therefore used for a short period with a specific deadline. 

Your internal order will usually settle to cost centers (and not visa versa) according to the settlement rule in the order setup. 

An internal order can therefore be used to group all the expenses incurred to plan and hold a conference over a 3 month period. The order can be settled on a monthly basis to cost centers. 

When the conference is finished the order can be settled finally. The cost of the conference will then be spread over 2 or more cost centers, but can be viewed in total on the internal order when needed.  

It is important to understand the difference between a settlement and an assessment cycle. An assessment cycle distributes costs from one cost center to various other cost centers. You cannot assess from a cost center to an internal order nor visa versa. Assessment cycles are only between cost centers. 

Settlements are used for orders. In the setup of each order is a "settlement rule". In this settlement rule you tell the system to which cost centers the cost in the order must be settled.  Typically, you will execute the following procedure at month-ends:  1. Settle all orders - this will settle all costs on orders to cost centers.  2. Run assessment cycles - Now that you have al costs against cost centers from your orders, you can start distributing costs between cost centers with assessments. 

Costs are posted to an order. When you process a purchase order you post to the internal order and not to a cost center. The same applies to journals in FI. You will post the costs to the order and not to a cost center. You will then settle the order on month-ends to post to the relevant cost centers. It is very important to settle these orders otherwise FI and CO will not  balance on your system. 

Internal orders can also be used as "statistical" orders. This is also specified in the setup of the order. You do not have to settle statistical orders. When posting costs, you will post to the cost center and the order simultaneously. Both have to be specified when posting journals or purchase orders against statistical orders.

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Get help for your SAP FI/CO problems Do you have a SAP FI/CO Question?

Difference Between Primary and Secondary Cost Element 

Explain the difference between primary and secondary cost element? With an example.

Primary cost elements are like materail costs, personnel costs, energy costs... where a corresponding GL account exists in FI..to allow costs to flow...

Secondary cost elements are like production costs, material overheads, production overheads, they can be created and administered in only CO.  These are used in internal cost allocation, overhead calculation, settlement transactions., it does not flow to FI...

General - Cost Element ---------------------------------- Basically, cost element are carriers of costs.

Primary Cost Element -------------------------------- When cost element carriers cost between FI and CO they are called Primary, the link is established GL A/c = Cost element(Primary). A question may arise as to whether all GL accounts are cost element, it again depends upon the business requirement, where COPA is active then revenue account (GL) are also cost elements, where COPA is not active then revenue account (GL) should not be made as an cost element.

Example.... Again cost of goods sold particularly in VAX (make to stock) is not an cost element, where the same COGS in VAY (make to order) is a cost element. Price Difference account should not be made as cost element.

Entry while booking expenses Travel Expenses A/c  - with Cost Centre Dr. Rs.YY (will be a GL A/c and cost element) - entries flows to CO thru FI   To Cash A/c Cr. Rs.YY

Secondary Cost Element ------------------------------------- When cost element carries cost with in CO, then they are called secondary cost element.

Example.... - Take Product Costing --------------------------------------------------- On manufacture of the goods the cost of the above product (production order) is arrived at accumulating material cost + operational cost + overheads (%), additive cost if any.

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The cost of operation is accumulated in cost centre be it production / production service / service cost centres, while booking FI entries.

Those operational cost has to be allocated to production order based on operational activities carried on and its cost involved in it. Those operation activities in CO are termed as activity types and has to link the same in KP26 with rates and cost centre (ie., sender cost centre and receiver production order).

In order to find the production order cost, the allocation of cost from sender cost centre to production order for the operational activities carried on and its cost associated with it, have to be loaded, hence in CO the cost centre allocate that portion of operational cost to production order, and this cost is carried by a cost element (since there are no FI involvement and entries are flowing within CO by crediting sender cost centre and debiting receiver production order a cost element has to be created.... say "Operational Cost - Activity" the entry will be

Operational Cost - Activity (Production Order) Dr Rs.XX    To Operational Cost - Activity (Cost Centre) Cr Rs.XX The entries are with in CO. And the cost element created is secondary since it does not has an link with GL Account in FI correspondingly.

 In CO the production order and cost centre are co object including but not limited to.

Tips by N.Sathish Kumar

SAP Controlling FAQ

CONTROLLING

Controlling: Controlling provides you with information for management decision-making. If facilitates co-ordination, monitoring and optimization of all process in an organization.

Features of Controlling: Cost Center Accounting, Activity Based Accounting, Internal Orders, Product Costing, & Profitability Analysis.

Controlling Area: Organization unit that represents a closed system Used for accounting purposes.

You can assign one or more company codes to one controlling area.

If you assign more than one company code to one controlling area, then you need to note the following.

1) Consistent Chart of a/c’s (Treat each cost element in all company codes in same way). 2) The Operative fiscal year variants in the company codes must match the fiscal year variant in controlling area. 3) You should execute period end closing in controlling for all company codes at same time.

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4) The system only post reconciliation posting across company codes without taxes, which means that it cannot automatically create invoice. 5) Maintain controlling area - OKKP . 6) Maintain no. ranges for controlling documents - KANK                          7) Maintain versions - OKEQ

COST ELEMENT ACCOUNTING

Cost Elements: Cost Elements Describe the origin of costs. Cost element classifies the organization valuated consumption of production factors within a controlling area.

Primary Cost Elements: These arise through the consumption of productions factors that are sourced externally. Primary cost elements are used for direct posting and must be accompanied in GL a/c’s in FI.

T-code : KA02 : The categories are follows 1) General primary cost element, 03 - Imputed cost element percentage method 4 - Imputed cost element, target = Actual Method, 11- Revenue elements, & 12 - sales deductions. 

Secondary Cost Elements: Cost elements arise through the consumption of production factor’s that are provided internally i.e., by enterprise itself. Secondary cost elements are used strictly for internal controlling posting like assessments and settlements. T-code - ka06 

Category: 12 - internal settlements, 31 - Result analyses, 41 - overhead’s, 42 - assessments etc. Cost Element Group - kah1

COST CENTER’S 

Cost Center’s: Organizational Unit within a controlling area that represents a defined location of cost incurrence. The definition can be based on 1) Functional Requirement, 2) Allocation criteria, 3) Physical location and 4) Responsibilities for cost.

Change Cost center hierarchy - OKEON  Creation of Cost Center         - KS01

Distribution: Was created to transfer primary costs from a sender cost center to receiving controlling objects. Distribution is primary cost elements. Define Distribution - KSV1 Execute “” - KSV5

Assessment:  Was created to transfer primary and secondary costs from a sender cost center to receiving controlling objects. During assessment, the original cost elements are summarized into assessment cost elements (secondary cost element, category=42). 

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Define Assessment - KSU1 Execute Assessment - KSU5

Activity Types: Categorizes productions and services activities provided by a cost center to the organization and used for allocating costs for internal activities to the originates of the costs.  

Creation of Allocation Cost elements - KA06 Creating/Maintaining the Activity types - KL01

Statistical key figures: Are used as the basis (tracing factor) on which to make allocations (assessments & distributions) and to analyze structural key figures.

Setting Up Manual & Automatic Payment Program

I am doing a project in my institute. we are facing a problem in running a automatic payment program.  Suppose I have a balance of Rs 100000 in my bank account and today I am running a Automatic payment run.  Total payment of the run are Rs 150000.   So when I run Automatic payment run it is not giving any error message. What to do with this problem. 

In my point of view we have to create validation. And link between bank account and payment method.  If the balance is less than the automatic payment amount the run should be stopped .

The Automatic Payment Program does not check the Balance of your Bank Account.(GL A/c. Bal.) 

What it does check is the min & max amounts that you have maintained in your customisation. 

In  FBZP Transaction (type in easy access screen), you have to maintain the config for your automatic payment runs. 

In Bank determination (in FBZP), you have to fill in the available amounts  for  each Bank. This is the maximum amount up to which payments will be generated by the Auto. Pay. Run. 

So if you want to ensure that on any single day the payment run does not pay more than bank balance, you have to update on a daily basis available balance to match with your bank balance . 

In SPRO you can find the customisation for A P Run, but FBZP is the old transaction for the same thing. Plus it lets you do all the related customisation, in one place. 

As far as I know, there is no direct way of linking your GL account balance to the A P Run.    *-- Uma   

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I am creating a new company code 'A', in which the paying company code will be 'B' and the sending company code will be 'A'. Now I have to configure for both manual and automated payments.

Couple of questions on that:

1. For cross-company payments what do I have to do different in the configuration settings. 

2.  In manual outgoing payments, My user has a list of reason codes ( for overpayment/underpayment) defined for an old company code, it's not allowing me to copy that into my new company code. How can I do that. 

In Customizing Maintain Payment Program : Transaction code FBZP  1) define your company code'A" & "B" both in section tab (All Company code)      2) Define Paying company Code for example "A" paying company      3) Payment Method in country in tab  Country IN (India) - Name of Country - Payment Method "C" is for Cheque "D" for Demand Draft etc     4) Payment Method in Company code - for example "A" is paying company define payment method in same section      5) In Bank Determination Section - define Ranking Order, Bank Accounts, Available Amount, Value Date, Expences/ Charges      6) Define House Bank : HB Name , Account ID Bank Account Text,     While runing APP (F110) user should select paying Co Code "A" in maintain variant,     *-- Rajat 

SAP FI Functional Consultant Responsibilities

What is the meaning of SAP FICO Functional and SAP FICO Technical?

SAP FICO Functional means functional knowledge, by which one can proceed in terms of functional process with FICO area as well as FICO configuration knowledge.

Whereas SAP FICO Technical consultant may be an ABAPER, who have short of knowledge of FICO configuration and functional knowledge as well and can proceed for technical jobs e.g. reports development, client requirement, system modification etc.

To become a Pure Hard Core FI functional consultant

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Q: Can via T.Code FBL1N by selecting vendor with plant reference in selection using search help field group.

Plant is not a field for finance or in sap it is FI module - this is for PP and MM module, In case required, please define that as FI object for FI reports - like BA and so on.  Configure the plant as a BA and in all FI places you can capture BA in line items of vendors. 

Spent little time on going through various standard reports of SAP which are very rich in itself - for each report it has options of all fields of master data , all fields of FI document means around in my opinion around 400+ options to select.  Hence we should first get an idea of fields in masters and documents and how they are updated. 

To become a good consultant.... Every report of SAP standard is a gem - but we always look for FAST FOOD without understanding the quality of how standard is the solutions..

Spent time in understanding - there are lot of chapters available for reading . Suggestions ... Understand the Finance function first upto closing of books and management reportings done in a practical way. Go to sap img screen - you will find all options are there... If you go reverse way , sitting inside the car and asking - anyone can help me in understanding what is the wheel in front of driver used and how to use it??

All the best - take it in the right spirit for a successful future

Tips by : Murali

Reasons For Archiving Financial Accounting Data

What is financial archiving? Where it is used? Why? Where is it configured in IMG?

There are both technical and legal reasons for archiving Financial Accounting data. 

Archiving:  1) Reduces storage and runtime problems caused by the constant growth of transaction data. 2) Makes master data easier to manage and to keep up to date. 3) Enables data to be accessed at a later date.

You can archive data no longer required in the online system using certain standard functions.  This data is then stored in archive files and deleted from the online system.  For legal and commercial reasons, it is important that you are able to access archived data files online again, and the reloading function allows you to do this. 

Data must meet certain conditions before it can be archived. Some of these controls are already defined in the system, for instance the fact that you cannot archive documents that contain open items. Certain other controls are user-defined.  Every archiving function can be accessed from archive management (SARA). 

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To reach archive management, choose:  Tools --> Administration --> Archiving or from the Accounting --> Financial Accounting --> General Ledger, Accounts  Receivable, Accounts Payable or Banks menus --> Periodic processing  Archiving  <Archiving object> . 

When you access archive management from these menus, the archiving object is defaulted by the system in the field Object name. Otherwise you must enter the name of the archiving object manually. 

Tips by : *-- Dhaval

Why and When to use Business Area

Can any body tell me why we want to use business area and where it is going to be used, as I know it helps in consolidation and still more?

CG.Gopinath

Business Areas in SAP are used to differentiate transactions originating from different points/lines/locations in business. Let me give some examples to elucidiate:-

A company (say, ABC) is a huge company and has a variety of businesses under it. Let us say that it typically operates in 3 different domains like machinery manufacturing, trading and assembling of machine parts. 

There are 2 options here now - 1. Either create different company codes for the 3 business operations (which would be the easiest and require no creativity)

or 

2.) Create each of these business lines into business areas (the better option).  The advantages of using the second option is: 1. You can use these business areas if other company codes require the same areas 2. The configuration is simpler as in case of company code, you would require to go through the entire configuration of creating Chart of Accounts, Fiscal Year variants, posting periods variants and so on. In the business area option, you just need to attach it to the company code and the rest of the details in Business area is attached by default from the company code you are using it in. 

3. Using the options in controlling (EC-PCA, Enterprise Controlling, Profit Centre Accounting), you can even draw up Balance Sheets and PL statements for your business areas and hence this is used for management accounting in some companies (like HP, Dell, etc) when it wants to know the operating profits for different business areas/lines.

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The above was an example when the company wanted to separate entries according to the lines it operates in... the other case could be when it wants to find out profitability during its operations in cities and differentiates these cities into Business Areas...

Business Areas are not much relevant in FI but are much more relevant in CO.

Hope this clears.

Jacob Joseph

You have given a very good example for Business Area.  I have questions.

If I want the B/s and P&L Account for Business Area wise, I can take it. But, How about those transactions which are not assigned any business area during the document entry.

Kotni

Let me first be sure of what you are asking.  Is it:

1) You want the B/S and P/L statements of transactions carried out in areas other than the business areas defined by you? or

2) You only want to view the transactions that were not carried out in any business area?

Whatever were your doubts, let me clarify.

If your doubt was the first one, then, in that case, the financial statements will not be available.  There are reasons for the same. All transactions in FI pass through G/L accounts. The data in FI is then passed to CO through  primary cost elements. According to the settings that you have configured for your controlling area and operating concern, the costs are distributed to the various cost centers (Cost Center Accounting & CO-PA). The costs are then apportioned to the various cost centers (which may or may not be a part of your business areas or may be independent cost centers). Now, with this data, financial statements of the business area are drawn up. For transactions not part of business area, they are transferred to independent cost centers (e.g. like Head Office Salaries, HR, etc) and hence, cannot be drawn up as a financial statement but just as line item displays in your reconciliation ledger (if you have activated it in the CO-OM-CEL {Cost Element Accounting})

[The answer to your second  doubt, I hope]. 

Financial statements of Business areas are unbalanced because not always does the debit and credit entries of a transaction lie in the same business area/cost center; but for cost accounting purposes, they are reasonably sufficient.

I hope this clears.

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Jacob Joseph

Thank you for the reply. I understand I need to give more clearly about my doubt. 

I want to configure FI and other modules and there is no CO or operating concern. But I want Balance sheet and Profit and Loss Account for each of the business area.

As you aware, the business area can be defined above or below company code level.

Is it possible to get what I want.

Kotni Ravi Kumar

In order to generate BS and P&L at business area level you should carry out the following:

1. You should have activated " Enable BA balance sheet" under enter global parametets in FA global settings.

2. You should do configuration under the transaction code "OBXM"

3. You also have run the transaction codes f.50 for P&L and 5.d & 5.e for Balance sheet readjustment.

System automatically posts the taxes and reconciliation accounts of NIL BA transactions to BA and tally the trial balance of all B. areas 

Yerra Rao

Your explanations were excellent and precise, but I have a quick question why would one use business area against a profit center as business area data is never precise and getting a balance sheet report via business area is not recommended. Profit center would be better just a doubt please clarify

Sabarinathan Swaminathan 

Why would I use business area against a profit center?" is a very pertinent one and conceptually necessary. Let me explain to you what a profit center exactly means, both in SAP terminology and in management accounting. 

In management accounting, a profit center is an area or department from where the management wants to find out the return on investment or ROI, as the accountants know it. The concept in SAP is similar as it is used by management to find out the ROI. On the other hand, business areas are just segregation of business transaction origins. So, a certain business area can have more than one profit center within it. Both have their unique uses and both have their unique features. 

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Using the above understanding, you can easily work out where you would use business centers and where you would use profit centers. 

Hope this clears,

Jacob Joseph

Thanks for the explanation its good thanks

Sabarinathan Swaminathan 

Creating and Maintain SAP Business Area

You can set up several business areas for each client so that the system can assign the postings made in all company codes defined in this client. 

To ensure consistency in document entry, you should give business areas the same name in all company codes.

Goto transaction SM30 and specify the view V_TGSB

To maintain to business area click the Maintain button.

Fastest way to create a SAP Company Code

SAP recommends that you used EC01 to copy an existing company code to a new one.

This has the advantage that you also copy the existing company code-specific parameters. 

If necessary, you can then change certain data in the relevant application. 

This is much less time-consuming than creating a new company code.

---------------

Meaning and Creation of Company codes

Which is the best method to create a company code. - copy an existing company code or copying from country templates. 

What is the process involved in copying from a country template.  

For configuring SAP, generally three steps are required

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1) create company name and address 2) creation of company code 3) currency and country setting 4) Assign company code to company

In same organisation i.e. in one company more than two company codes are maintaing, then its better to copy from other company code from ec01, later on you can customised/change specific settings according to client requirements.

If your want seperate setting in your own company code, that time its better to configure by creation rather than copy

In above that is your choice and need for reqirement.

Otherwise you can upload certain data by creating company code. 

Rama Krishna  

Now my doubt is What is the Difference between Company and Company Code?

Company is the smallest organizational unit for which individual financial statement can be drawn according to the relevant commercial law.

Company code is the smallest organizational unit for which complete, self-contained set of accounts can be drawn up for external reporting purposes

Shyam  

Company - A company is a legal entity or a organisation which is to carry out a business and under a company you have lot of sub companies.

For Example Tata is a company TCS,Tata Power,Tata Steel, is a company code under a company TATA  Under Company code you have business area associated with it where the business areas may be scattered in different parts of the world where you can have reporting done for different business area or you can also call it as Profit Centre.

Sakote Sanjay  

A company is the Group of company and company code is the all the companies for which u want seperate books of accounts. Company codes are assigned to company for consolidation purpose.

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example :- reliance is the company

and RIL,Reliance infocomm,Reliance Petrochem etc are the company codes.

All these co.codes are assigned to reliance company for consolidation purpose.

Gagan  

Along with that technical difference is COMPANY cosists of 6 digit alphanumeric key where as COMPANY CODE cosists of 4 digit alphanumeric key.

Mahesh   

Company means group company for example : Tata Group

Company code means one of the company of its group ex: Tata Chemicals, TCS, Tata Steels etc.

Kris

What is Valuation Area and Valuation Class

What is Valuation Area? How is it linked with Valuation Class? What is the significance of Valuation Area?

Valuation areas are nothing but the level at which you want to valuate your materials. SAP provides two levels of valuation Plant level and company code level.

For example:

Valuation at plant level: Suppose you have two plants one in Hissar and one in Andhra Pradesh, Then of course you would like to valuate the rawmaterials at plant level as because you have got transportation cost and taxes etc to account for.

Valuation at company code level:Here you valuate all your material in same way.

In One client valuation areas can either be set to plant level or company code level. Once you have made this setting this cant be changed

Valuation classes are linked to valuation class in Tcode OBYC

If your valuation area is at plant level then in OBYC you will find a coloumn for Valuation modifier you can provide your plant there.

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For example:

Valuation Mod   Valuation class    Account plant 1                       3000           200130             

FI Errors and Probable Solutions

These are some of the issue for which probable solutions are given, hope they are helpful :

Scenario 1: I have configured FBZP, Fi12 for house bank. But when I am doing payment run in F110 I am getting following error: 

Company codes X1YZ/X1YZ do not appear in proposal 05/03/2006 REMI2.

Diagnosis No data exists for the specified paying company code X1YZ and the specified sending company code X1YZ in payment proposal 05/03/2006 REMI2.

System response The payment proposal cannot be edited.

Procedure Check the flow trace and payment proposal list in order to determine why the specified company codes are not contained in the proposal

Solution : * That’s generic error for payment run, check whether there are any due items as on date (tcode fbl1n). You can also change the baseline date there and rerun it. if you still get same error.. Check the proposal log, you will find the reason.

* Try to see first whether any open items exist. By using FBL1N.

Scenario 2: How to make the payment through automatic payment program, through F-110 .What are the prerequisites?

Solution :  For Down payments to be paid using APP we have create a Down Payment request F-47.

Scenario 3: While doing APP, after, " the payment proposal has been created message " if edit proposal is selected,  I am getting the error as "Company code ABC/ABC do no appear in the proposal "

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Solution : This type of error comes when your Payment proposal doesn't have any items to process. Check the parameters and ensure invoices are due as on run date.

Scenario 4 : While posting customer invoice (FB70) why system asks for G/L account? As per accounting rules customer is debited and Customer reconciliation a/c is credited that ends double entry book keeping rule.  Why one more G/L account on top of Recon a/c, which is posted automatically?

Solution : * Entry gets posted to Customer a/c through reconciliation account. You have to give a GL a/c for revenue.

Your entry would be  Customer (Reconciliation a/c)    Dr To Revenue                      Cr

* Reconciliation is a fictious entry so you cannot consider as an entry to be entered by the user. This rule is derived from the fact that 'we cannot enter/post directly to RECON account'. 

That is why system needs a GL account to make the account balance as zero.  Manual entry could be:

Customer a/c Dr To Domestic Sales a/c (Sales invoiced posted)

Recon entry is automatically made once you post this entry since you have configured your RECON in the IMG.

Scenario 5 : I am unable to figure out how to attach my GL Accounts to my company code [copied chart of accounts, have my own company code, assigned my company code to the chart of accounts]. 

Solution : You can attach the GL Accounts by just filling the details in the company code segment of the GL A/c. Hence you can use that gl a/c for your co code.  But that would be individually creating the accounts. Right?? How about creating all accounts at one shot.   Create in FS00

Scenario 6 : Difference between Standard Hierarchy and Alternate Hierarchy.

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Solution : Standard Hierarchy is basic structure of company but alternative hierarchy is just for reporting or temporary usage.

Scenario 7: I have created depreciation keys (diminishing balance) and assigned to asset classes respectively. But at the time of asset master creation the system ask for Useful Life of the asset while my understanding is that in diminishing balance method there is useful life, just percentage is defined.

Solution : Useful life is required for depreciation change. Normally a company with WDV depreciation may want to write off its assets which have crossed their useful life in 2 or 3 installments. This is achieved by depreciation change, where after useful life, a new method takes over.

Scenario 8 : I have some conceptual problem in Internal Order.

Solution : Internal order can only take a statistical posting & cost centre shall take a true posting when the relevant internal order is defined as statistical I/O IN T. code KO01(CONTROL DATA ) tab. So while making a posting in FB50 and assigning both I/O & COST CENTRE as relevant cost object in the transaction you shall get the stated status of these 2 cost object.

Scenario 9 : In fb50, in the details tab, only if I tick 'calculate tax'  will the tax get calculated. Our user wants this to happen always (by default), i.e. he does not want to tick this for each transaction. Is there any setup to be done for the tax to get calculated always?

Solution : Even now you are not clear. T_Code FB50 is used for posting GL account only. I fail to understand how you can calculate tax which is generally from purchase / vendor or Sales / Customer oriented through FB50.

In case of local distribution, if we forget to pay taxes on certain items and we need to pass tax entries, then such a case is needed.  This can be achieved thru default parameter id for that particular user through transaction code SU3. 

In SU3, in Parameters Tab put "XTX" in Parameter ID column and in Parameter Value column put "X".

Scenario 10 : We have an issue here where by the system is calculating the tax for an invoice with a wrong tax base amount. How do i change the tax base amount? I get the tax rates from VERTEX and they are showing right. Where does the system pull this tax base amount for an Invoice and how can I change it.

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Solution : Kindly check this: spro - financial accounting  - f.a global setting - with holding setting - extended with holding  setting  --  calculation -- with holding tax type .

Check your withholding tax type, go in it and check the setting.

Tips by : Viji 

SAP Chart of Account

It defines the structure of G/L accounts.  It is a list of G/L accounts used by one or more company codes. In that Chart of account you have to specify the length of G/L accounts.

In SAP all the entries are document oriented. so from the balance sheet of any entry you can identify the root of an entry. so it's like a flow chart in computer terms. 

There are threee types of Chart of Account are there.

1.Operative Chart of Accounts 2.Group of Chart of Accounts 3.Country Chart of Accounts.

1.Operative Chart of Accounts is a Chart of Account you use for the company code.

2.For different chart of accounts(operative COA) for different company code, you can group the chart of account into one chart of account for internal reporting, but cross company code controlling is not possible, because of different chart of account for different company code.   3.For different country you can have different reporting system. so for different company code you can have different company code, but can have same Operative Chart of account, so cross company code controlling is possible.

Tips by : Jayaraman

What is the difference between standard chart of accounts and the operating chart of accounts? What is the difference between Corporate group chart of accounts, Operating chart of accounts and Group chart of accounts?

To summarise, here is the COA setup in SAP:-

1. Operative chart of account - It is the main chart of account assigned to each company code in OBY6.

2. Group chart of accounts - This is structured in accordance with requirements pertaining to Consolidation

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3. Country-specific charts of accounts - These are structured in accordance with legal requirements of the country in question.

Standard COA is a sample COAs provided by SAP. like INT, CAUS etc. You can use them as your operative COA or can create your own operative COA from these standard COA.

Corporate Group COA is same as Group COA.

Tips by : Gaurav