AC200 Training

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Unit 1: Basic Settings

Lesson 1: Organizational Units a. Client Independent to each other; technically company code 574 of one client is different from company code 574 of another client; highest level in the mysap erp financial structure o Independent o Specific Cross company codes links two the same company codes of different clients Company code enclosed legal entity; representation in the government; smallest unit in the client; external purpose Business area represents separate areas of operations, within a client; span across company codes, can generate balance sheet and income reports; internal purpose, optional o In P&G, uses BA as plant o Does not need to be assigned; once created can be used IMG: Enterprise Structure Definition FA Enter, copy, delete, check, company code copy, delete, check company code/ Edit company Code Data IMG: FA FA Global Settings company code Enter global paramaters we usually copy, a template is always available SAP Menu tools customizing IMG Project Management SPRO SAP reference Enterprise structure definition financial accounting edit, copy, etc. Copies GL accounts when you copied company codes enable financial statements financial accounting financial accounting global settings company code enter global parameters business area fin.statements tick box should be checked (OBY6) Enterprise Structure Define Business Area (OX03) OX02 maintain address, currency etc. will localize company code 0001 to facilitate easier maintenance of the newly created company code Enterprise structure localize sample organizational units.

b. c.

Create a company code

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Create financial statements in BA

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Create BA
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Install local settings of a country

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INT default chart of accounts (international)

Lesson 2: Variant Principle - main advantage is to easily maintain data properties that are being used by several business objects 3 step method used in R/3 to assign special properties to one or more R/3 object a. define variant b. populate variant with values c. assign to R/3 objects (OX02 assign the created variant to a company code ex. FY variant

Financial accounting Fiscal Year Create

Lesson 3: Fiscal Year FY Variant defines the number of periods and its start and end dates - contains posting periods and special periods - four extra special periods o for adjustment postings (2nd interval) o used for postings not assigned to time periods but to the process of year-end closing o 16 periods can be defined in total (12 + 4 special periods) - If the last posting date falls under the last normal posting period, it can be posted in one of the special periods instead - Standard fiscal year variants are already defined in the system and can be used as templates - Opening or closing of FY variant is maintained in another table year-independent fixed (same number and dates of period every year) o calendar year 12 posting periods only o non-calendar year at most 16 posting periods assign end dates to each period have year shift of -1+ year shift current year vs. the desired FY year-dependent fiscal period varies if fiscal year != calendar year but the posting periods correspond to calendar months, day limit for feb should be 29 for leap years Year specific FY are used if: o Start and end date of the posting periods differ from year to year o One FY has fewer posting periods than others Shortened fiscal year FY has less posting period IMG: Financial Accounting FA Global Settings FY Maintain/Assign

Maintain/Assign Fiscal Year

Lesson 4: Currencies -

IMG General settings Currencies ISO used for currencies and unit of measure; mapper for idocs

Exchange Rate Type - M - user exchange rate type M (average rate for posting & clearing) - G buying rate - B selling rate - Bank buying rate - Average rate

Historical date

Currency key assigned to every currency used in the system - defined in SAP System with standard international currency keys - can have validity date Translation ratios - used to maintain relationship between currencies per exchange rate type and currency pair - for those with large difference values in terms of decimal (example JPY) Tools for maintaining exchange rates 1. Inversion oldest and seldom used 2. Base currency 3. Exchange rate spreads selling ( + spread) , average rate M, buying ( - spread) - base currency can be used for average rate M to be more efficient only one tool can be used for each exchange rate type, different tools for different exchange rate types are is allowed

Reports: - RFTBFF00 (transfer external market data in file form, uses input file to update exchange rate table) - RFTBDF07 (transfer exchange rates real time from external to SAP system) Base currency/ Reference currency - PHP USD JPY Exchange Rate Notations - depends on the market standards or indiv business transaction Direct quotation/price notation 1 foreign cur = xxx local cur ( ) Indirect quotation/volume notation 1 local cur = xxx foreign cur (/)

To define base currency

SAP Netweaver General Settings Currencies check exchange rate types

Unit 2 Master Records

Lesson 4: General Ledger Accounts 3 steps: 1. Define the COA 2. Define the properties of the COA 3. Assign the chart of accounts to company codes Financial accounting General Ledger Master Records Chart of accounts variant which contains the structure and basic info about GL accounts - Defined by 4 character ID - Individual components of the COA should be defined - Must be assigned to every company code for which accounts are to be setup - COA has several accounts; COA is assigned to at least one comp code

COA individual component Definition

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COA Key Description General Info o Maintenance Language (for account desc) o Length of the GL Account number (1 to 10 digits) Controlling Integration (for P&L Statement accounts) o Manual or automatic cost elements/type creation Consolidation o Group COA (group account number) Used for cross company code reporting if company codes use different COA When this is defined, this becomes a required entry in GL account definition Status o Block indicator For COA not yet completed and not to be used by other comp code

Report - RFSKPL00 (directory of GL accounts in COA) - RFSKVZ00 (view GL account directory with COA and Comp Code data) - RFSKTH00 Account assignment manual (to display text for COA and comp code segments) - RFSEPA01 (subsequently activate line item display) Assignment of COA - Variant Principle: 1 company code is to many COA o Account from COA remains constant across company codes - If company code wants to use cross-company controlling, same COA must be used GL account = COA segment + Company Code segment FS03 COA Segment - contains summarized info about the account o account number o account name o control fields o consolidation fields - contains several group of fields o Type/Description o Keyword/Translation

o Information Fields in COA Segment o info entered in COA segment of a GL account applies to all comp code o texts entered managed by text ID and language o able to search account numbers by keyword o able to define and change layout of tabs

Company Code Segment - needed in order to use an account from the assigned COA in your comp code - contains data concerning the comp code - contains several group of fields o control data o Bank/Interest o Information - Fields in Comp Code segment (relevant to each comp) o Currency o Taxes o Recon account o Line item display o Sort key o Field status group o House bank o Interest calculation information P&L Accounts & Balance Sheet Accounts expense and revenue accounts - either one should be defined in the COA segment as it affects the closing procedure o P&L Account balance is carried forward to a retained earnings account and P&G account is set to 0 o Balance Sheet Accounts balance is carried forward to the same account; expense and revenue accounts Account Group - groups accounts with the same tasks with the GL (because COA has many diff types of accounts) - ex. Cash, material, asset, profit and lost accounts etc - number range is assigned for each account group to ensure that accounts of the same type are within the same number range - intervals for GL account master records can overlap - when entered in the COA segment, controls the appearance of the comp code segment of a GL account

Account Group Definition IMG: Financial Accounting G/L Accounting General Ledger Accounts Master Data Preparation Define Account Group
Master records preparations additional activities define screen layout for each transaction

Field Status - enables to control the display and maintenance of an accounts data - define if a field for a certain transaction (fs02, fs03 etc) will be Hidden, Display, Required or Possible/optional - some properties applies to a field group also - fields: account currency and field status group required always - Fields that are hidden may still contain values that are taken into consideration.

Field Status for Master Data - Fields in master data are controlled by transaction specific control and not only account group - In case that there are two properties defined in account group and transaction specific control, use the following conservative priorities (highest to lowest) o Hide o Display o Required entry o Optional use this if you dont want to use the field - For transaction display always hidden or displayed Reconciliation Account GL accounts assigned to business partner master records to record all transactions in the sub-ledger All postings to the sub-ledger are automatically posted to the assigned recon account Cannot post amounts directly to recon account Sub-ledger AR, AP, MM, etc

Account types entered in the Recon Account:

D- AR K- AP

Line Item Display - control field in the comp code segment of an account - If ticked line items of a debit/credit will be displayed. Transaction figure totals of line items on the debit or credit - Without line item display: only the TF is updated when a document is posted with this account; user can only see the balance online - With line item display: user can view both the balance and indiv line items; uses special index table

Accounts where line item display should not be activated

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Recon account use sub-ledger Revenue account use sales order management application Material stock purchasing management application Tax accounts checked at the time the document was posted

Open Item Management - contains items specified as open or cleared - Line Item Display are needed to be ticked (unless balance is zero) - used for bank clearing accounts, clearing for GRIR, salary clearing accounts Account in Local Currency - Account currencies: Local & Foreign - Local is the default when you create GL account - If local is used, Can be posted to in any currency Only Balances in local Currency - when checkbox is ticked in the master data record, transaction figures are only managed for amounts converted to local currency - being set when you want to clear accounts by assigning items with the same local currency amount with one another - must be set for cash discount and GRIR clearing accounts - must not be set for recon accounts for customer and vendors

Accounts in Foreign Currency - you can only post amounts in this foreign currency on this account.

Ways to create GL accounts

1. 2. 3.

Manual 2 segments or both simultaneously (centrally) Copy indiv GL account with ref to other GL account, comp code segment, COA segment Data Transfer transfer new COA from an external system

Collective Processing - changing of master data components at the same time Group Chart of accounts - used if company codes dont use the same COA altogether - disadvantage: cross company code controlling not allowed because comp codes dont use the same COA Country Chart of Accounts - alternative of group COA - this is entered in every comp code segment. Every alternative account number can only be used once. - Can use cross company code controlling - this may be hard for acctg clerks Group Chart of Accounts (CONS) - consolidation of country chart of accounts (INT and CAUS)

Create GL Accounts

SAP Easy Access menu: Accounting Financial Accounting General Ledger Master Records G/L Accounts Individual Processing Centrally SAP Easy Access menu: Accounting Financial Accounting General Ledger Information System General Ledger Reports Master Data G/L Account List

Display COA

G/L Account List

Lesson 5: Customer and Vendor Accounts 2 segments: general data client level; can be accessed throughout the org company code-specific data comp code level; created customer/vendor account Additional segments: sales area segment(for customer sales and service), purchasing organization segment(for vendor -MM) Account number assigned at the sales/purch client level to ensure that the acct number is the same across comp codes and sales/purch area Reports: RFBIDE10/RFBIKR10 used to transfer customer/vendor master data from source comp code to another comp code RFDKAG00 customer master data comparison RFKKAG00 - Vendor Master Data Comparison Centralized vs. decentralized (separately- financial accounting) maintenance - Centralized financial segment is created at the same time as the sales order management/purchasing management segments - Decentralize financial segement is

AR Sales and distribution AP Materials Management

Compare Master Data You can prevent the creation of duplicate accounts as follows: Use the matchcode before you create a new account Activate the automatic duplication check Use the reports for comparison Pages of the Customer/Vendor Account - Four areas of company code data of a customer/vendor master record o accounting information o payment transactions o correspondence o insurance (customer) o withholding tax (vendor) - Important fields o Search term o Used defined group key customers/vendors who belong to one corporate group o Name of clerk/accounting (correspondence) - Explanatory texts can be inputted in every segment - account segments consists of several pages with different groups of fields o General Data o Company Data IBAN International Bank Account Number - unique identification number for a certain bank account - for international payment transactions - contains country code, bank key and acct number - can only be entered when business partner has its IBAN and requests for this Account Groups for Customers/Vendors - controls the number ranges of the accounts - controls the status of the fields in the master record - controls if the account is a one time customer or vendor Number Ranges for Customers/Vendors - account numbers are divided to smaller number ranges - number ranges cannot overlap - can be assigned to one or more account groups o Internal by system o External alphanumeric, by user SNUM all number ranges Table NRIV Normal Account or One Time Account - customer/vendor fields are hidden - specific data of the vendor/customer not maintained because they are rarely used - specific data of the vendor/customer is inputted during document posting Status of the Fields in the Master Record - ex. Address field marked as required Control of the Field Status - layout of master data can be affected by several factors: o account group control o transaction specific control

o company code specific control if the 3 are set, fields status with highest priority is used lowest priority optional

Dual Control Principle - one person changes, one person confirms the changes - Sensitive the customer/vendor is blocked for payment if the entry is changed; the block is removed after 2nd person confirms or rejects the change - Confirmation can be made for a list with the ff restrictions: o Customer/vendor o Company code o Accounts not yet confirmed o Accounts rejected o Accounts to be confirmed by me Report: - RFDABL00 or RFKABL00 (view all customer/vendor master record for all accounts) Customer/Vendor Clearing - applies when customer is also a vendor and vice versa - each company code can decide separately whether it wants to clear open items between vendor and customer - Clearing with vendor ticked in customer account in order to use clearing - Indicator Account Control and status in additional selections to see partner relationships for the customer/vendor Alternative Payer - used if the payer is bankrupt, the alternative payer/payee is the backup - Individual Specification indicator set this to enter information about the non existing alternative payer/payee - For existing alternative payer/payee, use matchcodes to choose the payer/payee during invoice posting - when you post, the customer name is alternative payer, accounts payable is also alternative payer Report - RFDKVZ00 or RFKKVZ00 (set the payment data) indicator to see alternative payer/payee for the customer/vendor. Head Office/Branch - Default: all items posted in the branch office automatically transferred to the head office account. - If the Decentralized Processing field in the correspondence tab is selected in the head office master record, the branch account will be used. - When you post, the customer name is branch office, but accounts payable is the head office - Set Account Control and Status indicator in the report to see possible head offices for each branch Lesson 6: Bank Accounts Bank Master data - created to be able to use bank in the system - stored centrally in the bank directory - each record is identified by bank country and bank key - includes address data, control data (SWFIT code) , postal giro data, bank group (payment optimization)

Report - RFBKABL0 - display changes of bank master data - RFBKVZ00 report for banks; identified by bank country and key House banks banks that your company uses - created in customizing - bank master data - information for electronic payment transactions - bank accounts per house bank - GL account per bank account Bank Id and Bank Types used to determine which bank to use Four ways to create bank master data 1. when bank is not yet created and you entered it in the customer or vendor master data (FI03 display bank) 2. Create bank transaction in AP or AR 3. imported from disk or tape using program RFBVALL_0 4. lockbox function to create batch session input Bank account - different types of accounts in a certain bank (time deposit, savings etc); referenced by account ID - house bank id + account id - entered in the GL - bank account at house bank must be defined - can be identified by account ID (unique per house bank) - GL account must be created/assigned for every bank account (same currency) Bank Type used to distinguish between different banks Partner bank field used with matchcode to choose a bank for a vendor/customer FBZP house bank transactions

Unit 3 Document Control

Lesson 7: Document Structure Document Principle a document is saved for every posting; the document remains as a complete unit until archived - Every document is uniquely identified by the ff: o Document number o Company code o Fiscal year - Also includes the ff o Document header o 2-999 line items - Important control keys o Posting key for line item o Document type for header - Number assignment o External and internal - Business transaction can created one or more documents - Documents can be created without no accounting docs (ex. Purchasing doc in material management) Report - RFBELJ00 (create compact doc journal) - RFBNUM00 (find gaps in doc number assignment) Document Type - Controls document header and differentiate business transaction to be posted - Defined at client level - defines o number ranges (most impt) o allowed account types (most impt) o doc header text, reference text fields o net procedure for postings - controls document storage For storing of documents - always use the same number - if doc number was assigned externally, put the external number in the reference text of the doc header Important standard doc types AB General documents (allows posting to all account types) DR Customer Invoices KR Vendor Invoices DG customer credit memos KG Vendor credit memos DZ Customer payments KZ Vendor Payments SA GL account postings KN Vendor net invoices and credit memo - RV & RE needed to transfer billing document - ZP for automatic postings Document Number Ranges - defines the number range for the document numbers that are to be assigned - must not overlap o internal gets value from CURRENT field o external may be alphanumeric, no current number - must be defined for the year in which it is used o up to a future FY does not restart the number of the number range when the new FY begins

o for each fiscal year system restarts the number range with the first number 1 number range to many doc types

Posting Key client level defined - controls o type of account in line item o debit/credit posting o field status of additional details - specifies the following o connected to payment transaction? o Posting sales relevant? Document Field Status - controls the screen display during document posting o GL account specific field status o Customer/Vendor processing posting key specific - Priorities o If BA is used, BA field should be required/optional o Tax fields required or hidden depends if GL account is relevant to tax o Hide cannot be combined with required Field Status Group - Defines the status of every document entry field for each group of GL accounts o Ex. Cost center field in document entry is optional, hidden, required, display? - Assigned in GL master record - Summarized in one field status variant - Field status variant assigned to company code (mandatory) - For subledger account posting, field status group of recon account is used Standard Posting Keys - recommended by SAP to be used - posting keys for assets and materials can only used if the corresponding SAP components are installed - Field status can be (but PK field status desc and group should be changed) o Transaction dependent o Account dependent - Subledger account do not have field status group. Thus, differentiation in subledger postings are made via different posting keys - For GL accounts it have field status group and uses this for posting differentiation (2 posting keys only) Day 3 Lesson 8: Posting Periods - defined in the FY variant - special periods is opened for closing postings - two period intervals should be opened at the same time during closing - several company code can use the same posting period variant Posting Period Variant - 1 posting period variant is to many company codes - Account range in this variant consists of GL accounts Period checks per account type - Document header level checks posting period at + account type. This is because at document header level, theres no account type yet.

+ is required Line Item level checks posting period at different account types of posting key Account intervals always contains GL accounts - All account field in OB52 are GL accounts (no vendor or customer accounts); recon account is used for vendor/customer

Two Period Intervals - Two period intervals must be open at the same time (from period to period / from period to period) - Authorization group applies to the first period interval; if no auth group specified, the first interval is used, and the 2nd interval is left for adjustment posting - Auth object: F_BKPF_BUP (auth for posting period) Determination of posting periods during posting - Posting period and FY are determined based on posting date entered Lesson 9: Posting Authorizations - guideline for posting high amounts - Tolerance groups where max amounts are defined for company code o Where processing of payment differences is controlled Maximum Amounts - upper limit for posting transaction - You can define several upper limits in the tolerance group o Total amount per doc total debit o Amount per customer/vendor line item o Cash discount - Currency used is local currency of the company code Assigning Posting Auth - Many tolerance group can be created - Blank __ tolerance group is used for majority of users who are not assigned explicitly to a special tolerance group acts like the normal tolerance group and those with tolerance group are the special ones Steps: Define tolerance group Assign to user (log on id assigned to a tolerance group) if this is not done, tol group blank is used. Lesson 10: Simple Documents in mySAP ERP Financials (using enjoy screen) Posting Transactions GL Account posting cash (dr) vs bank (cr) Vendor Invoices Expense (Dr) vs. Vendor (Cr) & input tax (dr) Vendor Credit memo Expense (Cr) vs. Vendor (Dr) & input tax (cr) Customer invoice Customer (Dr) vs. Sales (Cr) & Output tax (cr) Customer credit memo Customer (Cr) vs. Sales (Dr) & output tax (dr) Header and 1st Item - use of tabs Additional line items - complex posting feature - explanatory text inputted and used internally or externally (for external : use * in front of the text) - text templates defined in customizing copied into line items when chosen

Unit 4: Posting Control

Lesson 11: Default Values User settings Defaults - parameter ID allow users to set default values for fields whose value does not change very often (company code, currency) - Use edit option to configure this o Document entry hide fields o Document display use list viewer display options o Open items line layout display posting options; enter partial amount or balance of the open item - Properties of user log in account o Logon language o Date formatting o Decimal notation o Default printer System and Account defaults - basic default values for document entry o Sources user master records parameter memory system data account master record accounting functions o Values posting date company code (next doc) document principle balance should be zero in a document document types and posting keys fiscal year proposal (changing or displaying docs) - company code level o maximum difference allowed between exchange rate in the doc header level and the exchange rate in the exchange rate table Lesson 12: Change Control - Functions to change documents that are already posted - Only certain fields can be changed based on different rules o Predefined by system o User-specific - Document change for document header and line items - *stipulation/conditions for changing - Document header allowed changes o Reference number and text fields - Line Items NOT allowed changes o All fields that will affect the reconciliation of posting (PK, account) - Change logs o Changed field o New and old values o User who made the change o Time and date of change Document Change Rules - based on: o account type rules for customer, vendor, GL accounts o transaction class special GL: bills of exchange and down payment o company code if blank, rule applies to all company code

Condition/pre-req o Posting period open o Line items not cleared o Posting as debit/credit o No invoice related credit memo o No credit memo from down payment

Lesson 13: Document Reversal - Done with document was posted incorrectly and correct data wants to be re-entered - Reversal can be individual or mass reversal - Reversal reason o Explains the reversal o Controls whether the reversal date can be different from the original posting date - cleared documents cannot be reversed, the clearing document should be reset (FBRA) - 2 ways: 1. normal reversal posting usually used a. system posts the incorrect debit as credit and vice versa b. causes additional increase in the transaction figures 2. negative posting a. just like normal posting but do not add the items so values will go back to its original form b. certain countries use this only c. have pre-requisites i. company code permits negative postings ii. reversal reason should be defined for negative reversal d. also used to transfer postings of incorrect line items i. incorrect value is removed via a negative posting (resetting the transaction figure) and correct value is posted to the correct account via a normal posting ii. document type should allow negative posting Lesson 14: Payment Terms and Cash Discounts Terms of Payment - defines o baseline date for due date calculation o cash discount periods o cash discount percentage rates - are o assigned to a customer/vendor master record o defaulted by the system or entered by user o used in transaction line items to determine payment conditions - conditions agreed between business partners for the invoice payment - used to calculate invoice due date and cash discount Terms of Payment in Invoices - can be created in and defaulted from o company code segment o sales area (customer) o purchasing area (vendor) Terms of Payment in Credit Memo - invoice related credit memo o credit memo is linked to the original invoice. Terms of payment is copied from the invoice

other credit memos o terms of payment is invalid because these are due on the baseline date. o For credit memo, enter V in the invoice reference field for payment term to take effect. Otherwise, baseline date will be the due date.

Terms of Payment Basic Data - General o Day limit calendar days to which TOP is valid o Description system explanation/user explanation + sales order management text o Account type defines the subledger in which TOP can be used Same TOP for customer and vendor define using separate TOP keys and use them for only 1 account type Terms of Payment Payment Control - block keys for line items and account and TOP also. Blocking for payment or collection - payment method can be entered in line items or accounts or TOP ex. Check, cash.. Baseline Date - starting date the system uses to calculate the invoice due date - Rules that apply in calculating baseline data o Default values no default, document date, posting date or entry date o Specs for calculating fixed day - payment transaction tab in the company code segment in vendor master data settings of baseline date Cash Discount - entered by system automatically o granted if payment was paid within the payment term - calculated based from the o discount percentage rates o Discount periods - Max of 3 cash discount periods allowed Day Limit - enable date-specific terms of payment in one terms of payment key - is the baseline date up to which payment term version applies - versions of TOP can have different day limit - ex. Day limit 2 from T0009, Day limit 2 from T0009 2 versions of the TOP Instalment payment - enables for total invoice amount to be paid in partial amounts due on different dates - if ticked, cash discount is not allowed - define the ff o instalment number o percentage (all should total to 100%) o TOP of instalments Cash discount Base amount - base amount for cash discount depends on the natl regulation of the country. It can either ber: o net value (total of GL account and fixed assets; taxes not included) o gross value (including taxes) - base amount defined in company code level

Posting Cash discount Gross procedure - amount is entered manually or automatically - can be changed even after invoice posting - when an open item is cleared in customer/vendor account, cash discount is automatically posted to the account cash discount expense/revenue defined in the config

Figure 96: Posting Cash Discount . Gross Procedure Net Procedure Invoice and Payment - Cash discounts used: o Clearing account o Loss account - cash discount lost for doc type KN only (net)

Figure 97: Net Procedure . Invoice (1) and Payment (2) Lesson 15: Taxes - SAP supports the ff tax systems for different countries: o Tax on sales and purchases o US sales tax o Additional taxes (investment tax, clearing tax) o Withholding tax

2 types of taxation o National level where tax rates are uniformly defined o State/jurisdictional level where rates are defined by the state/jurisdiction 3rd party software used for this because of complexity

Tax Support - system supports the treatment of tax as follows: o Checks the tax amount entered or automatically calculates the tax o Posts the tax amount to tax accounts. o Performs tax adjustments for cash discounts or other forms of deductions - Revenue/expense amount base amount o Cash discount can be included (tax base is gross) or excluded (tax base is net) o Tax base amount classification (gross or net) defined at company code level or the highest jurisdiction level Tax of Sales and Purchases - Input tax o Billed by the vendor (AP); dr input tax tax receivables o Tax consumed by the vendor - Output tax o Billed to the customer (AR); cr output/sales tax tax liabilities o Tax consumed by the consumer - Tax liability tax receivable = tax payable - Goods are only taxed once US Tax on Sales and Purchases - Sales Tax collected by vendor on sale and remitted to the jurisdiction of the consumer - Use Tax consumer has to pay this only if consumer was not charged sales tax by the vendor. This is remitted to the jurisdiction of the vendor Tax Calculation Procedure - contains: o order of the steps level that have to be performed o Tax types/condition types valid for the country o Account key/transaction key used for automatic account determination Jurisdiction Code - combination of the codes of tax authorities that tax movements of good and use their own tax rates - four possible levels below national level: o state o country o city o district - 2 steps to use tax jurisdiction code o Define the length of the indiv elements of the code for the format o Tax jurisdiction must be defined on every level

Tax Code - main link to the tax calculation in document posting - link procedure: o country key o combination of country key and tax jurisdiction code o posting/document date (since tax codes within jurisdiction taxation is date specific) Tax Rates - can be found in tax code - are assigned to tax types in the tax calculation procedure - 1 tax code may have several tax rates for different tax types (input, output etc) - There are some GL accounts where tax rates should be 0 special tax code is created for these (goods movement, goods issue, tax excempt) - Tax type determines if base amount is percentage included or separated - Tax check indicator should not be checked for input tax Tax Postings - standard: taxes calculated by system are posted in a separate line item to a special tax account - tax with certain transaction/account keys are distributed to the relevant expense/revenue item Tax Account Determination - to activate automatic tax account determination, assign the following o posting keys (40 and 50) o rules determines which fields the account determination is based on (can be based on tax code or account key) o tax accounts - Exchange rate difference occurs because of tax adjustment in foreign currency posted in normal account for exchange rate difference - You can specify if exchange rate of tax items will be entered manually or determined by posting date or doc date for every company code posted in special account Tax Accounts - accounts to which tax items are posted - Tax category o < - input tax o > - output tax o Neither specify properties of tax code - Post automatically only manual tax postings not to be made Other GL accounts - Tax category o Blank non tax-relevant postings o - - input tax code o + - output tax code o * - required tax code o xx predefined tax code xx - Posting without tax permitted you can post to this GL account without tax code - Tax category is required for cash discount for posting of tax adjustments Acquisition Tax Codes - creates two posting items: Acquisition Output Tax (Cr), Acquisition Input Tax (Dr) Lesson 16: Cross Company Code Transactions

involves 2 or more company codes in one business transaction o central procurement o central payment o one company code sells goods to other company codes involves more than 1 document automatic line items are posted to clearing account in order to balance debit and credit within these documents cross company code transaction number links the documents between cross company codes For affiliates transaction (company code 1 sells company code 2); no AP and AR Cr Revenue/clearing; Dr clearing/expense

Clearing accounts - must be defined in every company code to do cross company code transactions - may be GL accounts, customer or vendor - posting keys must be assigned to the clearing accounts to identify account types Cross company code document number - doc number (1st comp code) + 1st comp code + FY stored in the document header of all documents created for audit - can be reversed

Unit 5: Clearing
Lesson 17: Clearing Open Items Open Items incomplete transactions; ex. unpaid invoices - posting with clearing o enter clearing account o select open items o can be done manually or automatically - account clearing o choose open items that has balance 0 o system created clearing doc clearing doc number and date o can be done manually or automatically Clearing document end result of clearing transaction Automatic Clearing Program - groups items from an account with the same fields: o recon account number o currency o special GL indicator o any 5 fields in doc header or line item - does not clear the ff o noted items o stats postings and certain special GL transactions o items with withholding tax Assignment field as sort field - set the sort indicator in master record Posted In doer of the action (1000 pays in behalf of 2000) Lesson 18: Incoming and Outgoing Payment Manual payment transaction that clears open item by manual clearing Incoming Payment AR (post incoming payments: Header Data) Account = GL Account of house bank Amount = amount expected from customer (less the bank charge) Bank charges = bank charge amount itself Amount + bank charges = amount to be placed in clearing Outgoing Payment AP Document Header payment header - 3 sections o Payment header o Bank data o Open item selection Processing Open Items - activate required line items before you can assign payment - amount entered is assigned to appropriate line items and their cash discount - options for activating or deactivating line items o Selection of editing options for open items: Select .Selected Item Initially o Double click on the amount

Selection from action menus and function keys: There are different menus and keys available. if amount entered = amount assigned you can post the document cash discount determined by terms of payment of the line item o

Posting the Payment - display overview - simulate document - correct any mistakes - post Automatic postings for clearing open items - cash discounts expense or revenue - cash discount clearing (net procedure) - tax adjustments - exchange rate differences - bank charges - clearing for cross company code payments incoming or outgoing payments - over/under payments within tolerances payment differences Resetting Clearing - clearing data is removed from the items - changes are logged Net procedure 10% discount Vendor Dr 1000 Cr 1000 Cash discount clearing acct Dr 100 Cr 100 Expense Dr 900 Payment clearing account Cr. 900 Cash discount only Vendor Dr 1000 Cr 1000 Expense Dr 1000 Cash discount taken Cr 100 Outgoing Cr 900

Lesson 19: Payment Differences Tolerances rules that define acceptable differences during posting - Tolerance Groups entries are always in local currency 1. Employee tolerance group a. Upper limits for transactions b. Permitted payment differences 2. GL Account a. Permitted payment differences 3. Vendor/Customer a. Default values for clearing transactions b. Permitted payment differences c. Specs for posting residual items from payment differences d. Tolerances for payment advice notes Define permitted payment differences using tolerances 1. assign the tolerance groups to a. user master data b. gl accounts master data c. customer/vendor master data 2. 2 steps to use tolerance groups a. Group definition i. Tolerance group defined by: group key, company code a currency code ii. 4 character alphanumeric key iii. BLANK standard tolerance group b. Group assignment i. Assign the tolerance groups to their master records Permitted payment differences - can be found in employee and vendor/customer tolerance groups - controls the automatic posting of cash discount adjustments and unauthorized customer deductions Payment Differences - normally occurs during clearing of an item - difference is compared with the tolerance group and can be handled as the ff o within tolerance o outside tolerance o automatically posted as cash discount adjustment or unauthorized deduction o process manually Processing payment differences - if payment differences is too high must be processed manually, may be posted as o partial payment o residual item o account assigned to a reason code or written off by manually inputting a new posting item o payment on account Partial and Residual Payments Several ways to manually post differences outside tolerances: - Partial payment all the documents remain in the account as open items - Residual payment only the residual item remains open in the account then the original document and payment are cleared; a new document is created with reference to the original document

Post the payment difference to another account as a difference posting using reason codes and account determination Write off difference (manual account assignment)

Customer/Vendor tolerance groups contain entries that control the residual items: these specifies whether - terms of payment fixed or the same with the cleared item - cash discount is granted only partially and not to the whole amount - dunning key has max dunning level or is printed separately Reason Code used to describe the reason for the payment difference - Distribute difference to enable multiple reason codes - Can be assigned to: o Difference postings o Partial payments o Residual items - Optional functions (used to analyze and post process payment differences) o Control of the type of payment notice which is sent to the customer o Control the account where a residual item is posted o Automatic posting of a residual item to a specified G/L account. o Exclusion of residual items from credit limit checks because they are disputed Lesson 20: Exchange Rate Differences - may occur due to fluctuations in exchange rate when clearing items in foreign currencies - system posts this as realized gains or loss in the expense/revenue accounts - realized differences are stored in the cleared line items - are also posted when open line items are valuated for the financial statements. This type of difference are posted to another exchange rate difference account and to a financial statement adjustment account - when clearing an open item that has been valuated, system reverse the balance sheet correction account and post the remaining difference to the account for realized exchange rate differences Account Determination - all recon accounts and GL accounts with open items in FOREIGN currency must be assigned to revenue/expense accounts for realized losses and gains - One loss/gain account can be assigned to: o Per currency o Per currency type o Per currency and currency type o ALL currency and currency type

Unit 6: Cash Journal

Lesson 21: Cash Journal Configuration - to create, follow the 6 executable steps - 1 company code is to many cash journal Cash journal assignment Cash journal tool for managing cash in ENJOY - supports posting cash receipts and payments With this tool you can: - Create a separate cash journal for each currency - Post to customer, vendor, and general ledger accounts - Run several cash journals in each company code - Choose a random number for cash journal identification (a four-digit alphanumeric key) Setting up the cash journal - enter the necessary fields and doc types Business Transaction Types - have to be setup to process different business transactions - ex, expense, revenue, cash transfer etc Creating business transactions - two places to add new business transactions o cash journal itself o IMG Cash Journal Transaction Posting business transactions in cash journal Cash journal document with document split - separate cash journal has to be created for cash journal transactions whose items have different tax codes or controlling account assignments these are used to create several financial documents - NOW you can use Document Split to create cash journal transactions with different tax codes etc, producing only ONE financial document Cash journal document with One-Time Account - enables one time customer/vendor to post in cash journal --------------------- END YEY! --------------------------------------------------Lesson: Logistics Plant most important org unit in logistics - 1 Plant is to 1 company code - 1 company code is to 1 or many plant/s Valuation level level of company code or plant to which value is being assigned Ex. If valuation level is at company code value is uniform across all plants - defines the valuation area (company code or plant) Valuation Area

controls material valuation postings Company Code level o Plant stocks of a material are managed in joint stock account o Unit price same across all plants Plant o Materials stocks managed in different accounts o Price can be different across plants

Division - an org unit used to assign sales or profits from salable materials or services to areas of responsibility - used for automatic business area assignment - ex. Food or non-food Lesson: Procurement Process Purchasing Organization carries out procurement for a plant Plant specific purchasing o 1 or more Purch Org assigned to only one plant o Purchasing transaction posted in the comp code assigned to the plant Company Code Specific o purch org assigned to several plants that are assigned to 1 company code Group wide purchasing o 1 purch org is assigned to several plants assigned to different comp code

3 Step Process 1. Purchase Order 2. GR 3. IR GRIR account managed on an open item basis Purchase Order - Replenish o Debit inventory o GRIR clearing - immediate consumption o debit expense o credit inventory? PO Structure - doc header - line item/s Account Assignment OMWB Sales & Distribution - delivery receipt different from Goods issue (upon goods issue, FI doc will be posted) - goods issue pre req of billing -