VMS Trading Company

Structure Document
SAP Financial Accounting
Implementation Partner: Allied VMS
Author: VMS FI Team
12th April, 2013

SAP Implementation Project

VMS Trading Company FI Structure Document

12th April, 2013

Copyrights:
Copyright 2013 Allied VMS Technologies. All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any
purpose without the express permission of Allied VMS Technologies. The information
contained herein may be changed without prior notice. Some software products
marketed by Allied VMS and its distributors contain proprietary software components of
other software vendors.

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Contents

Page

I. Handling Procedure 1-5

II. Objective:

1-5

III. Overview of Module (FI): 1-6

1

Organizational Structure:

Configuration Data 2-8

2.1 General Ledger

2-8

2.1.1 General Settings

2-8

2.1.2 Account Groups

2-8

2.1.3 Field Status Group

2-9

2.1.4 Document Types

2-9

2.1.4 Posting Key

1-7

2-10

2.1.5 Posting Period

2-12

2.2 ACCOUNTS PAYABLE

2-14

2.2.1 ACCOUNTS PAYABLE GROUP

2.2.2 PAYMENT TERMS

2-15

2-15

2.2.3 SPECIAL GL INDICATOR

2-15

2.3 ACCOUNTS RECIEVABLE

2-16

2.3.1 ACCOUNTS RECIEVABLE GROUP 2-17

2.3.2 PAYMENT TERMS

2-17

2.3.3 SPECIAL GL INDICATOR

2.4 BANK ACCOUNTING

2-18

2.4.1 HOUSE BANKS

2-18

2.4.2 CASH JOURNAL

2-18

2-17

2.5 ASSET ACCOUNTING 2-20

2.5.1 Asset Class

2-20

2.5.2 Calculation of Depreciation

2-21

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I. Handling Procedure
Document Number:
Document Number

Document date

VMS_STDOC_FI

12-04-2013

Version History:
Version
Number

Version date

001

12-04-2013

Summary of Changes

Ref: Minutes of
review

Signature

Date

Signature

Date

Signature

Date

Reviewers:
This document should be reviewed by:
Name
Mr. Nadeem Ansari
Mr. Faisal Masood
Approvals:
This document requires the following approvals.
Name
Mr. Nadeem Ansari
Mr. Faisal Masood
This document has been distributed to:
Name
Mr. Adnan Bashir Khan
Mr. Nadeem Ansari
Mr. Arshad Ali

II.

Objective:

The Structure Document is a core implementation document for SAP

Implementations. This document defines the important information required for
initialization and setup of the SAP.

III. Overview of Module (FI):

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The component Financial Accounting focuses on the General Ledger, the

processing of Receivables and Asset Accounting. Important tasks of Financial
Accounting are the recording of monetary and value flows as well as the
evaluation of the inventories.
The GL contains the recording of all accounting-relevant business transactions on
to G/L accounts from a business point of view. Every general ledger is structured
according to a chart of accounts. The COA contains, in orderly form, the
definitions of all G/L accounts of the General Ledger. These definitions basically
include the account number, the G/L account designation and the categorization
of the G/L account as an Income Statement and Balance Sheet Account.
For reasons of clarity, the General Ledger often contains only collective postings.
In such cases, the posting data is represented in a more differentiated way in socalled Sub Ledgers which pass on their data in compressed form to the General
Ledger. Reconciliation Accounts connect the sub ledgers to the General ledger in
real-time that means, as soon as a posting is made to a sub ledger, the posting
to the respective reconciliation account in the General Ledger takes place analog
to this.
The AP records all business transactions that have to do with the relationships to
suppliers. It takes much of its data from Purchasing (MM - Materials
Management).
The AR records all business transactions that have to do with the relationships to
customers. It takes much of its data from SD.
The Asset Accounting records all business transactions that have to do with the
management of assets.
The Bank Ledger (BL) supports the booking of cash flows.

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1 Organizational Structure:

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2 Configuration Data
2.1 General Ledger
The central task of G/L accounting is to provide a comprehensive picture for
external accounting
and accounts. Recording all business transactions (primary postings as well as
settlements from
internal accounting) in a software system that is fully integrated with all the
other operational
areas of a company ensures that the accounting data is always complete and
accurate.

2.1.1 General Settings

Title
Chart of Accounts
Field Status Variant
Fiscal Year Variant
Currency

Code
INT
G001
K4
USD

Posting Period Variant

8000

Description
International Chart of Accounts
Field Status Variant is General
Fiscal Year Variant taken is from January to December
US Dollar is taken as the local Currency
Posting Period includes 1 12 January to December and it also
includes 13 16, 4 special periods

2.1.2 Account Groups

Account groups are used to group customer, vendor, GL Accounts, and Fixed Asset Accounts.
Account Group
10ER
11LT
12ST
13AP
14IN
15AR
16PA
17CC
18WP
19FA
20SR
21SD
22CG
22PD
22CA
22RA

Description
Equity & Reserves
Long term liabilities
Short Term Liabilities
Account Payable
Inventory
Account Receivable
Prepaid & Advances
Cash & Cash Equivalent
Capital Work in Progress
Fixed Assets
Sales Revenue
Sales Deduction
Costs of Goods Sold
Price Difference Accounts
Consumption Accounts
Revaluation Accounts

From Account
110000
120000
130000
140000
150000
160000
170000
180000
190000
200000
500000
510000
520000
521000
522000
523000

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To Account
119999
129999
139999
149999
159999
169999
179999
189999
199999
209999
509999
519999
520999
521999
522999
523999

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Account Group
22CI
23DE
24RE
25OE
26TA
27DE
28FC
29OI

Description
Changes in Inventory
Depreciation Expenses
Running Expenses
Other Expenses
Taxation
Dividends
Finance Costs
Other Misc. Income

From Account
524000
530000
540000
550000
560000
570000
580000
590000

To Account
524999
539999
549999
559999
569999
579999
589999
599999

2.1.3 Field Status Group

Field Status Group G001 will be used for all accounts used. With the Field Status Group we can
suppress, make it Required Entry, and Make it Optional Entry to the fields of the account groups. The
following field status is used for the configuration of VMS Trading Company as mentioned below.
FSG
G001

Description
General (with text, assignment)

2.1.4 Document Types

Whenever a transaction is posted a document is generated which is differentiated with a document
type. There are various document types that are defined for VMS Trading Company and the respective
document type will be used according to the criteria. The following are the documents types that are
used:
Document type
AA
AB
AF
AN
DA
DG
DR
DZ
KA
KG
KN
KR
KZ
ML
Document type
PR

Description
Asset Posting
Accounting Document
Depreciation Postings
Net Asset Posting
Customer Document
Customer Credit Memo
Customer Invoice
Customer Payment
Vendor Document
Vendor Credit Memo
Net Vendors
Vendor Invoice
Vendor Payment
ML Settlement
Description
Price Change

Number range
01
02
03
04
05
06
07
08
09
10
11
12
13
14
Number range
15

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Account types
ADKMS
ADKMS
AS
AKMS
DS
DS
ADMS
ADS
AKMS
AKMS
ASK
AKMS
AKS
MS
Account types
MS

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RB
RE
RN
RV
SA
SB
SK
SU
UE
WA
WE
WI
WL
WN
ZP
ZR
ZS
ZV
ZZ

Reserve for Bad Debt

Sales Invoice - Gross
Sales Invoice - Net
Billing Doc.Transfer
G/L Account Document
G/L Account Posting
Cash Document
Adjustment Document
Data Transfer
Goods Issue
Goods Receipt
Inventory Document
Goods Issue/Delivery
Net Goods Receipt
Payment Posting
Bank Reconciliation
Payment by Check
Payment Clearing
Reversal Document

16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34

S
AKMS
AKMS
ADS
ADKSM
S
S
S
ADKMS
AMS
AMS
AMS
AMS
AMS
ADKMS
ADKMS
DKS
ADKMS
ADKMS

2.1.4 Posting Key

Posting Key is assigned in order to differentiate debit and credit of an account. For example in VMS
Trading Company 40 is assigned for debit entry and 50 is assigned for credit entry for General Ledger
Accounts. The following Posting keys are assigned in the VMS Trading Company configuration:
Posting key
01
02
03
04
05
06
07
08
09
11
12
13
14
15
16
17
18

Name
Invoice
Reverse credit note
Bank charges
Other receivables
Outgoing payment
Payment difference
Other clearing
Payment clearing
Special G/L debit
Credit note
Reverse invoice
Reverse charges
Other payables
Incoming payment
Payment difference
Other clearing
Payment clearing

Debit/credit
Debit
Debit
Debit
Debit
Debit
Debit
Debit
Debit
Debit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit

Account Type
Customer
Customer
Customer
Customer
Customer
Customer
Customer
Customer
Customer
Customer
Customer
Customer
Customer
Customer
Customer
Customer
Customer

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19
21
22
24
25
26
27
28
29
31
32
34
35
36
37
38
39
40
50
70
75
80
81
82
83
84
85
86
89
90
91
92
93
94
95
96
99

Special G/L credit

Credit note
Reverse invoice
Other receivables
Outgoing payment
Payment difference
Clearing
Payment clearing
Special G/L debit
Invoice
Reverse credit note
Other payables
Incoming payment
Payment difference
Other clearing
Payment clearing
Special G/L credit
Debit entry
Credit entry
Debit asset
Credit asset
Inventory taking
Costs
Inventory difference
Price difference
Consumption
Change in stock
GR/IR debit
Stock inward movement
Inventory taking
Costs
Inventory difference
Price difference
Consumption
Change in stock
GR/IR credit
Stock outward movement

Credit
Debit
Debit
Debit
Debit
Debit
Debit
Debit
Debit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Debit
Credit
Debit
Credit
Debit
Debit
Debit
Debit
Debit
Debit
Debit
Debit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit

Customer
Vendor
Vendor
Vendor
Vendor
Vendor
Vendor
Vendor
Vendor
Vendor
Vendor
Vendor
Vendor
Vendor
Vendor
Vendor
Vendor
G/L accounts
G/L accounts
Assets
Assets
Material
Material
Material
Material
Material
Material
Material
Material
Material
Material
Material
Material
Material
Material
Material
Material

2.1.5 Posting Period

Posting is used to sum up the open and closing periods including special periods for the transaction to
be processed. The posting period is to be assigned ZZZZZZZZZZ for the posting period 1 to 12 for
current year, and special periods from 13 to 16 for next year. The following posting periods are
defined as follows:

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VAR.
A
From Account
To Account
From Period 1
Year
To Period 1
Year

8000
+ valid for all accounts
Blank
Blank
Previous Month
Previous Months Year
Current Month
Current Year

VAR.
A
From Account
To Account
From Period 1
Year
To Period 1
Year

8000
D
Empty
ZZZZZZZZZZ
Current Month
Current Year
Current Month
Current Year

VAR.
A
From Account
To Account
From Period 1
Year
To Period 1
Year

8000
K
Empty
ZZZZZZZZZ
Current Month
Current Fiscal Year
Current Month
Current Year

VAR.
A
From Account
To Account
From Period 1
Year
To Period 1
Year

8000
M
Empty
ZZZZZZZZZZ
Current Month
Current Fiscal Year
Current Month
Current Year

VAR.
A
From Account
To Account
From Period 1
Year
To Period 1

8000
S
Empty
ZZZZZZZZZZ
Current Month
Current Fiscal Year
Current Month

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Year

Current Year

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2.2 ACCOUNTS PAYABLE

The Accounts Payable application component records and manages accounting
data for all vendors. It is also an integral part of the purchasing system:
Deliveries and invoices are managed according to vendors. The system
automatically triggers postings in response to the operative transactions. In the
same way, the system supplies the Cash Management application component
with figures from invoices in order to optimize liquidity planning.
Payables are paid with the payment program. The payment program supports all
standard payment methods (such as checks and transfers) in printed form as
well as in electronic form (data medium exchange on disk and electronic data
interchange). This program also covers country-specific payment methods.
If necessary, dunning notices can be created for outstanding receivables (for
example, to receive payment for a credit memo). The dunning program supports
this function.
Postings made in Accounts Payable are simultaneously recorded in the General
Ledger where different G/L accounts are updated based on the transaction
involved (payables and down payments, for example). The system contains due
date forecasts and other standard reports that you can use to help you monitor
open items.
You can design balance confirmations, account statements, and other forms of
reports to suit your requirements in business correspondence with vendors.
There are balance lists, journals, balance audit trails, and other internal
evaluations available for documenting transactions in Accounts Payable.

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2.2.1 ACCOUNTS PAYABLE GROUP

Account Group

Description

1001

Raw Material Local

1002

Raw Material Imported

1003

Packing Material Local

1004

Packing Material Imported

1005

Aluminum Foil Printers

1006

General Order

1007

Lab. Equipments

1008

Lab. Chemicals And Glass Wares

1009

Consumable Items

1010

Stationary

2.2.2 PAYMENT TERMS

ID
Y001
Y002
Y003
Y004

Description
7 days payment
15
days
payment
30
days
payment
45
days
payment

2.2.3 SPECIAL GL INDICATOR

Sp. GL
Ind
A
B
C

Description
Down Payments - Vendors
Security Deposits - Long
Term Vendors
Security Deposits - Short

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Number
ranges
100000 199999
200000 299999
300000 399999
400000 499999
500000 599999
600000 699999
700000 799999
800000 899999
900000 999999
110000 119999

ID
10
20
30
40
10
10
20
30
40
10

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Term Vendors
Down Payments Request Vendors

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2.3 ACCOUNTS RECIEVABLE

Accounts Receivable application component records and manages accounting
data of all customers. It is also an integral part of sales management.
All postings in Accounts Receivable are also recorded directly in the General
Ledger. Different G/L accounts are updated depending on the transaction
involved (for example, receivables, down payments, and bills of exchange). The
system contains a range of tools that you can use to monitor open items, such as
account analyses, alarm reports, due date lists, and a flexible dunning program.
The correspondence linked to these tools can be individually formulated to suit
your requirements. This is also the case for payment notices, balance
confirmations, account statements, and interest calculations. Incoming payments
can be assigned to due receivables using user-friendly screen functions or by
electronic means, such as EDI.
The payment program can automatically carry out direct debiting and down
payments.
There are a range of tools available for documenting the transactions that occur
in Accounts Receivable, including balance lists, journals, balance audit trails, and
other standard reports. When drawing up financial statements, the items in
foreign currency are revalued, customers who are also vendors are listed, and
the balances on the accounts are sorted by remaining life.
Accounts Receivable is not merely one of the branches of accounting that forms
the basis of adequate and orderly accounting. It also provides the data required
for effective credit management, (as a result of its close integration with the
Sales and Distribution component), as well as important information for the
optimization of liquidity planning, (through its link to Cash Management).

2.3.1 ACCOUNTS RECIEVABLE GROUP

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Account
Group
100
110
120

Description

Number Range

Direct Sale
Indirect Sale
Intercompany Sale

100000 199999
200000 299999
300000 399999

2.3.2 PAYMENT TERMS

ID
A001
A002
A003
A004
A005

Description
Advance
payment
Cash payment
7 days payment
15
days
payment
30
days
payment

2.3.3 SPECIAL GL INDICATOR

Sp. GL Ind
A
B
C
F
Z

Description
Down Payments - Customers
Security Deposits - Long Term Customer
Security Deposits - Short Term Customer
Down Payments Request - Customers
Customer - Bad Debt

2.4 BANK ACCOUNTING

This component is used to handle accounting transactions that you process with
your bank.

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It includes the management of bank master data; cash balance management

(check and bill of
Exchange management), and the creation and processing of incoming and
outgoing payments.
It is possible to freely define all country-specific characteristics, such as the
specifications for
Manual and electronic payment procedures, payment forms, or data media.

2.4.1 HOUSE BANKS

HBID
KARACHI
MCB02

Name Of Bank

Branch

Muslim Commercial
Bank

S.I.T.E. Branch
Karachi

House Bank
Bank Key
Telephone1
Contact
Person

MCB02
25-222
021-2586801-4

Bank Name
SWIFT code
Bank Account
No.
GL Account
No.

Syed Zain
Current Account for
MCB
PKKMYBSW
157030-301
180002

2.4.2 CASH JOURNAL

CJ No.
1000

Description
Cash Journal - Head Office

Amount Limit in Cash Journal

CJ No.
Amount Limit
1000
50,000.00
Doc No. Range for Cash Journal
No.
From
01
1000000000

Business Transactions in Cash Journal

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CoCD
8000
8000
8000
8000
8000
8000
8000
8000
8000

Business Transaction
Payment To Bank
Receipt From Bank
Receipt From Customer
Paid To Vendor
Misc. Costs
Sales Revenue
Cash Payments
Cash Reciepts
Cheque Reciepts

2.5 ASSET ACCOUNTING

The Asset Accounting (FI-AA) component is used for managing and
supervising fixed assets with the SAP R/3 System. In SAP R/3 Financial
Accounting, it serves as a subsidiary ledger to the FI General Ledger,
providing detailed information on transactions involving fixed assets.
The R/3 Asset Accounting component is intended for international use in
many countries, irrespective of the nature of the industry. This means, for

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example, that no country-specific valuation rules are hard-coded in the

system. You give this component its country-specific and company-specific
character with the settings you make in Customizing. To minimize the time
and energy involved in Customizing, country-specific defaults are provided
in the standard system where possible.
As a result of the integration in the R/3 System, Asset Accounting (FI-AA)
transfers data directly to and from other R/3 components. For example, it
is possible to post from the Materials Management (MM) component
directly to FI-AA. When an asset is purchased or produced in-house, you
can directly post the invoice receipt or goods receipt, or the withdrawal
from the warehouse, to assets in the Asset Accounting component. At the
same time, you can pass on depreciation and interest directly to the
Financial Accounting (FI) and Controlling (CO) components. From the Plant
Maintenance (PM) component, you can settle maintenance activities that
require capitalization.

2.5.1 Asset Class

Asset class is the main criteria for classifying fixed assets. Each asset is
assigned to only one asset class. It is recommended that as many asset
classes are defined as there are assets with different valuation types. The
asset class default values determine depreciation calculation and other
master data. Screen layout specifies which input fields are displayed in
asset master record and if they are required entry or optional fields. In
each asset class you also maintain screen layout rules for Depreciation &
maintenance level. This ensures that depreciation is controlled uniformly.
Asse
t
Clas
s

Description

1100

Freehold Land

2100

Building on Freehold Z100

Land
Plant & Machinery
Z300

3000
4000
4500
5000
5100

Motor
Vehicles
Owned
Motor
Vehicles
Leased
Office Equipments
IT & Communication
Equipment

Scre
en
Layo
ut
rule
Z100

Z200
Z500
Z300
Z300

Equipm
ent
Categor
y

Account
of
Depreciation
(No.
Ranges)

1000000
NR
1999999
2000000
NR
2999999
M
3000000
Machines 3999999
V
4000000
Vehicles
4999999
V
- 5000000
Vehicles
5999999
M
- 6000000
Machines 6999999
M
- 7000000
Machines 7999999

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TO
TO
TO
TO
TO
TO
TO

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5200
6000
7000
9100

Laboratory
Equipments
Furniture & fixtures

Z300
Z300

Asset
Under Z400
Construction
Low Value Assets
Z400

M
Machines
FFurniture
NR
NR

8000000 T O
8999999
9000000 TO
9999999
10000000 TO
10999999
11000000
TO 11999999

2.5.2 Calculation of Depreciation

Depreciation will be calculated by straight line method.

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