Introduction To ERP-FI Material-3

ACCOUNT PAYABLE
• Activities related to purchase of Raw Materials and purchase of other items on

credit are recorded in this module.
• Accounts payable in SAP is treated as a sub-ledger.
• A G/L account Sundry creditors is maintained at the G/L Level.
• At the Sub- ledger level a record “Vendor Master” is created.
• All transactions are posted to sub-ledger.
• Transactions posted to the sub-ledger are maintained at two levels- one in the sub-
ledger and the same data gets transferred to the General ledger.
The following figure explains the flow of transactions in Accounts Payable –
Contact: - 9704017167, info@vtechsoft.in, www.vtechsoft.in

This is sub ledger (subsidiary ledger). This is used when material management (MM)
module is not implemented for all type purchases.
Basic settings for account payable:

1. Creation of vendor account groups
a) we create Raw material vendors and Other Vendors
2. Create number range for vendor accounts:
3. Assign number range group to vendor account group.
4. Define tolerance group for vendors.
5. Creation of 2GL masters.
a) Inventory raw material - Current assets, loans & advances
b) Sundry creditors – RM -Current liabilities & Provisions
6. Creation of vendor master
7. Document type and no.ranges
KR: Vendor invoices
KZ: Vendor payment
KA: Vendor document for transfers / Reversals
8. Posting keys :31 Vendor credit
:25 Vendor debit

Creation of vendor accounts groups:
Path :SPRO –Financial accounting (New) – Accounts receivable and accounts

payable - Vendor accounts - Master data - preparation for creating vendor master
data - Define account groups with screen layout (vendors)

Select new entries button and enter the following
Account group :DURM
Name :Raw material vendors for DUPS

Double click on company code data

Double click on account management
Reconciliation account make it required entry field
select save button
enter
press enter to save in your request
select next entry button
Account group :DUOT
Name :Other vendors for DUPS


Reconciliation account : Make it required entry filed.
Create number range for vendors account:
Same path upto Up to preparation for creating vendor master data - Create number ranges
for vendors account.(Transaction code is XKN1)

Select change intervals button

Select interval button

Number range :30
From no. :400000
To no. :400500
Enter
Select interval button once again
No.range :31
From No. :400501
To no :400800

Enter
Save
Ignore the warning message press enter
Assign number range to vendor account groups:

Same path

Select position button
Account group :TARM
Enter
For account group :DURM
Number range :30
Account group : DUOT
Number range :31
Press enter to save in your request
Define tolerance group for vendor

Path :SPRO-Financial accounting(New) - Account receivable and account payable -
Business truncations - Outgoing payments - manual outgoing payments - Define
tolerances(Vendors)

Select new entries button
Company code :DUPS

Tolerance group : Blank
Description :

Save
Press enter save in your request

WEEK 3 - PART 1
Creation 2GL masters (FS00)
Sundry creditors raw material GL Account
Give the GL account no :300001
Company code :DUPS
Click create button

Click control data tab

Select create /bank /interest tab
Field status group change to GO67

Save

Similarly create Sundry creditors others GL Account with G/L Account number
300000 under current liabilities
Creation of inventory raw material G/L Account under current assets (fs00)
Give the G/L A/c number 200002
Company code: DUPS
And click create button

Click control data

Click create/Bank/Interest

And save

Creation of vendor master:
Path : Accounting - Financial accounting – Account payable-Master records -

Maintain centrally - Create (Transaction code is XK01)

Give the company code :DUPS
Account group :DURM
Enter

Press enter
Title :Select company
Name :PHILLIP INTERNATIONAL LTD
Street :
Post :
City :
Country :US

PRESS ENTER

Leave the screen blank. Used only when the vendor and customer are the same and press
enter

Select individual specific check box and press enter

Reconciliation account :Select 300001 (sundry creditors raw materials)
Sort key :012 Vendor no
Cash management group: A4
And press enter

Payment terms :Select 0001 (payable immediately)
Tolerance group :Blank
Save
In the same way create some more vendors

Document types and no. ranges (OBA7)
Select type  KR  Vendor invoice
Select details button

Number range 19 (Note down the no.range)
Select number range information button

Give the company code : DUPS
No.range :19
Year :2012
From no. :601
To no. :1600

Enter and save
Select back arrow 3 times
Select type -KZ vendor payment
No. range 15 (note down the no.range)
Select no.range information button

No.range year From no. To no.
15 2012 1501 1800
Enter and save
Select type – KA vendor document
No.range 17
Company code : DUPS
Select change interval button
No.range :17
Year :2012
Form no. :1801
To no. :2000

Enter and save
Ignore the message press enter
Purchase invoice posting
Path : Accounting-Financial accounting-Account payable –Document entry- Invoice

general (Transaction code F-43)
Give the document date :Todays date
Type :KR(Vendor)

Company code :DUPS
Posting key :31 (Vendor credit)
Account :500000 (Vendor no.)
Enter

Give the amount :500000 USD
Text :Purchase invoice posting
Posting key :40
Account no. :200002 (Inventory raw material)
Enter
Amount :*

Text :+
From the menu select document  Simulate

and save
Outgoing payment with clearing
Path :Accounting – Financial accounting-Accounts payable -Document entry–

Outgoing payment –Post (F-53)
Give the document date : Todays date
Type :KZ
Company code :DUPS
Clearing text :Outgoing payment

Account under bank date :200000 (CITI BANK A/C)
Amount :15000
Text :Vendor payment
Account under open item select :402301
Account type :K comes by default (K stands for Vendors)

Select process open items button
Click partial payment tab

Deactivate all the documents expect for the one against which the adjustment of the
current payment has to be done by double clicking on the net amount column of the
respective document

Place the cursor in the payment amount column and double click on it

It will display the amount of partial payment
Check the not assigned field which will be equal to zero
Document Simulate

Select save button or Ctrl+S
Display vendor balances

Path: Accounting – Financial accounting - Account payable - Account –Display
Balances(Transaction code is FK10N)

Give the vendor number: 402301
Company code: DUPS
Fiscal year: 2012

Click execute button

Double click on the respective item to view the documents
How to view vendor account transactions

Path: Accounting –Financial accounting-Account payable-Account –Display change
line items (Transaction code is FBL1N)

Give the vendor account :402301
Company code :DUPS
Select open items radio button
Select normal items check box
Select execute button

Advance payments to vendors (down payments to vendors)
1. Creation of GL master –Advance to vendors –Current assets, Loans & Advances

2. Link between sundry creditors and advances to vendors
A (Advance special GL indicator)
Creation of GL master advance to vendors (FS00)
GL A/c No. :200003
Company code :DUPS

Click create button

Click create/bank/interest tab

And save
Link between sundry creditors and advance to vendors:
Path :SPRO-Financial accounting(new) - Accounts receivables and accounts

payables – Business transactions - Down payment made - Define alternative
reconciliation account for down payments (Tr code is OBYR)

Double click on A or down payment on current assets
Give the chart of accounts and enter

And save
Advance payment posting:
Path :Accounting –Financial accounting –Account payable –Document entry -down

payment – Down payment (F-48)

Press enter

From the menu document—simulate

And save
Vendor invoice posting using f-43

Press enter

Press enter

From the menu document --- simulate

And save
See the vendor Line item display (Truncation code FBL1N)

Give the vendor account no. :40230
Company code :DUPS
Select open item radio button

Select normal items check box
Select special GL transaction check box along with normal items
Click execute
Transfer of advance from special GL to normal by clearing special GL items
Path :Accounting –Financial accounting-Accounts payable-Document entry-Down

payment –Clearing (F-54)

Click process down payments button

Place the cursor in the transfer posting column and double click on it
It will display the amount of advance clearing
From the menu document – simulate

And save

Maintain terms of payment
Financial accounting (new) – accounts receivable and accounts payable – business
transactions – Incoming invoices/credit memos – maintain terms of payment (OBB8)

CLICK NEW ENTRIES

And save
Assign the terms of payment to vendor master

Press enter

And save
Post the vendor invoice using f-43

Press enter

Press enter

From the menu document – stimulate

And save
Create Discount received G/L Account using FS00

CLICK CONTROL DATA

CLICK CREATE BANK INTEREST TAB

AND SAVE
Define accounts for cash discount taken
Financial accounting(new) – Accounts receivable and accounts payable – business

transactions – outgoing payments – outgoing payments global settings – define
accounts for cash discount taken (OBXU)

PRESS ENTER
AND SAVE

400000 IS CASH DISCOUNT RECEIVED G/L A/C
AND SAVE
VENDOR PAYMENT USING F-53

CLICK PROCESS OPEN ITEMS BUTTON
DEACTIVATE ALL OTHER DOCUMENT EXCEPT THE CURRENT

DOCUMENT

FROM THE MENU – DOCUMENT –SIMULATE

DOUBLE CLICK ON THE ITEM IN BLUE COLOUR AND GIVE THE TEXT AS
CASH DISCOUNT RECEIVED
CORRESPONDENCE
Financial Accounting (New) – Accounts receivable and accounts payable – customer

accounts – Line items – Correspondence – Make and check settings for
correspondence – Define correspondence types. ( OB77)

Ignore the message by pressing enter

Select correspondence SAP06 and click copy as button
Change the correspondence type to DUPS and press enter and save
Request correspondence

Accounting – financial accounting – accounts receivable – Account- correspondence –
request ( FB12)
PRESS ENTER

Select SAP06

CLICK CONTINUE

Maintain ( F.64)
Same path next line

Click execute

Double click on the correspondence

Press enter
Press continue

Vendor Bank Charges
Go to FS00 Create the Bank charges Account under expenses


Create bank/interest/tab

Field status group – G067
And save
Define Account for Bank charges (OBXK)
Path: Spro→Img→ Financial Accounting (new) → Account receivables and Accounts Payable →
Business Transaction → Outgoing Payments →Outgoing payments global settings → Define account
for bank charges

Double click on bank charges
Press enter

Assign account – 500007( Bank charges Account)
And save
Vendor invoice posting using F-43

Press enter

Press enter


And save
Vendor payment using f-53

Click process open items button


And save

WEEK 3- PART 2
Charge of Differences
This charges of differences we are using for when we are paying the excess amount to vendors and this
excess amount can be charged off as advance payment to the vendor

Vendor invoice posting using f-43
Press enter

Press enter


And save


Click on charge off difference button at the top

Press enter



And save
Press enter key and save.
Payment differences

Define reason codes
Path IMG – Financial accounting (new) – Accounts receivable and accounts payable – business
transactions – outgoing payments – Manual outgoing payments - over payment/underpayment –
define reason codes ( T code OBBE)

Press enter
Click new entries
And save
Creation of payment difference account using fs00


Click create/bank/interest

And save
Assign payment difference account
Path IMG – Financial accounting (new) – Accounts receivable and accounts payable – business
transactions – outgoing payments – Manual outgoing payments - over payment/underpayment –
define accounts for payment differences ( manual outgoing payment)

Press enter
And save

And save
Posting the vendor invoice using f-43

Press enter

Press enter


And save


Click charge off differences button

Press enter



And save

HOUSE BANK
1. Define house banks
Path : SPRO-Financial accounting(NEW) –Bank accounting - Bank accounts

–Define house banks (FI12)
Give the company code : DUPS
Enter


Enter the following information
House bank :CITI BANK
Bank country :US
Bank key :4555555555
Save
A new screen will appear

Bank name :CITI BANK
Street :
City :
Bank branch :
Enter
Double click on bank account folder


Enter the following information
Account ID :CI20
Description : HOUSE BANK CITI BANK
Bank account no. :555555555
Currency :USD

G/L Account no. :200000(CITI BANK G/L A/C NO.)
Select save button
2. Change the GL Master (FS00)
Give the GL account no. 200000

Company code : DUPS
Click change button
Click create/bank/interest tab

Select relevant to cash flow check box
Enter the house bank : CITI
Account ID : CI20
And save
3. Creation of check lots:

Financial accounting(new) – accounts receivable and accounts payable –
business transactions – outgoing payment – Automatic outgoing payment –
Payment media – check management - define number ranges for checks

Paying company code :DUPS
House bank :CITI
Account ID :CI20
Select change button (Shift +F5)
Select create button

Lot no. :00 1
Check no :001
To no. :100
Select –Non sequential check box (OPTIONAL)
Short information :CITI BANK (OPTIONAL)
Enter

and save
How to create void reason code
Path : SPRO-Financial accounting (new) – Accounts receivable and accounts payable

- Business truncations - Outgoing payments – Automatic outgoing payments -
Payment media – check management – Define void reason codes
(Tr code is FCHV)


Creation of manual check

BEFORE DOING THIS STEP ENSURE THAT YOU HAVE SOME PAYMENT
DOCUMENTS i.e DOCUMENTS WITH DOCUMENT TYPE KZ
Path :Accounting –Financial accounting –Accounts payable –Environment –Check

information –Create –Manual checks (Tr code FCH5)

Press enter

In the same way create checks for some payment documents

Display check resister
Upto check information the path is same Display –Check register (Tr code is
FCHN)


Unissued checks cancellation
Some time while writing check we commit mistake before issuing to party – we cancel
check
Path same Up to check information void –unused checks (Tr code is FCH3)

Click on void button

System will display the message that checks 005 and 006 have been voided

CANCELLATION OF ISSUED CHECKS
Same path next line

Click on void button

Cancel check

Path :upto check information the path is same – Void - Cancel payment (Tr.Code is
FCH8)

Click on cancel payment button
System will give a message that payment cancelled and payment document reversed

Go and see the check register FCHN
Check encashment date updating:

Based on bank statement we update check encashment date.
Path same upto check information change –Additional info/Cash

Press enter
Update the check encashment date in the next screen and save.
ACCOUNTS RECEIVABLE (A/R)
• Activities related to sale of finished goods and sale of other items on credit are
recorded in this module.
• Accounts Receivable in SAP is treated as a sub-ledger.
• A G/L account Sundry debtors is maintained at the G/L Level.
• At the Sub- ledger level a record “Customer Master” is created.
• All transactions are posted to sub-ledger.

• Transactions posted to the sub-ledger are maintained at two levels- one in the sub-
ledger and the same data gets transferred to the General ledger.
The flow in accounts receivable can shown as follows -
BASIC SETTINGS FOR ACCOUNTS RECEIVABLE:

1. Creation Of Customer Account Groups
A) FG Customers
B) OTHER CUSTOMERS
2. Create number ranges for customer accounts
3. Assign number ranges to customer account groups
4. Creation of 2 GL masters
A) Sundry Debtors- "Current Assets, Loans&Advances"
B) Sales Account Sales

5. Creation of Customer Master
6. Document Types and No. Ranges OBA7
DR Customer Invoice
DZ Customer Payment

DA Customer Document For
Transfers/Reversals
7. Posting Keys 01 Customer Debit

15 Customer Credit
Creation of customer account groups

0
Path: SPRO- Financial Accounting (New) - Account Receivables and accounts
payables - customer accounts – Master data - Preparation for creating customer
master data - Define account groups with screen layout (customers)

Account group : DUFG
Name : FINISHED GOODS Customers for DUPS

Double lick company code data

Double click account management
Reconciliation account make it required entry filed
Save

Select next entry button
Enter the following
Account group : DUOT
Name : Other customers for DUPS


Reconciliation account make it required entry filed.

Save.
Create No. range for customer accounts:
Path :Upto preparation for creating customer master data the path is same.-Create
no. range for customer accounts (Tr.code is XDN1)


No. range :40
From no. :504901
To no. :505000.
Enter

Select interval button once again
No.range :41
From no. :505001
To no. :6800000
Enter and Save

Assign Number ranges to customer account groups:
Same path next line

Account group :DUFG
Enter
For DUFG Assign no.range :40
For DUOT Assign no.range :41
Save

WEEK 4 - PART 1
Creation of GL Masters (FS00):
Give the GL account no. :200005
Company code : DUPS
Click create button and enter the following

Select control data tab

give reconciliation account for account type to customers
sort key to 031 customer number
Select Create / Bank / Interest tab

Field status group :G067
Save
Similarly create sundry debtors others G/L Account
Create sales account

Click control data


And save
Creation of customer master
Path: Easy Access Accounting- Financial accounting –Accounts receivables-Master

records-Maintain Centrally-Create (Tr.Code is XD01)

Account group : Finished goods customer for DUPS
Company code : DUPS
Enter

Title : : select Company
Name : Daniel International ltd
Country : IN for India
Select company code data button

Reconciliation account : 200005 Sundry debtors
Sort key : 031 (Customer no.)
Cash management group : E6
Select payment transaction tab

Terms of payment :0001 payable immediately due net
Save
Similarly create two more customers
Document type number ranges (OBA7)
Select type Dr customer invoice

No.range :18

Company code :DUPS
Select intervals button
No.range :18
Year :2012
Form no. :2001

To no. :2500
Enter and save
Similarly define the number ranges for document type DZ (Customer payment) and DA
(Customer document)
ENTER USER AREA
Sales invoice posting:
Path accounting – Financial accounting – Account receivable - Document entry -

Invoice – General (F-22)

Enter
Posting key :50
Account :300000 (sales account)
Enter

Account :*
Text :+
From the menu select document  Simulate

and save
Customer Payment Posting Procedure(F-28)
Path: Sap easy Access →Accounting→ Financial Accounting → Account receivables

→ Document entry → Incoming Payments.

Enter the required data

Click on process open item tab.

Click partial payment tab
Place the cursor in the payment amount column and double click on it

From the menu document – Simulate

and save.
Display of customer documents (FB03)
Path: Sap easy Access →Accounting→ Financial Accounting → Account receivables

→ Documents display.

Press enter

To see the list of documents In the same screen
Click on documents list tab

Click on the document number to the entry
Display of customer balance (FD10N)

Path: Sap easy Access → Accounting → Financial Accounting → Account
receivables → Account display balances.
Press execute.

Display of Customer reconciliation Account balances
Go to FS10N for display of GL account balances

Press execute

Display of Customer status (FBL5N)

In this status report we find out which invoice is open and which invoice is clear and
which invoice is overdue.
Path: Sap easy Access → Accounting → Financial Accounting → Account

receivables → Accounts → display/ change line item.

Press execute.

Advance Receipts From Customers (Down Payment Receipts From Customers)
1.Creation Of GL Master - Advance From Customers- under Current Liabilities (FS00)

2.Link between Sundry Debtors and advance from Customers
3.Advance Receipt Posting
4. Sales invoice posting

5. Transfer of advance from special GL to normal by clearing special GL items
6. Clearing of normal items
Creation of GL master –advance from customer current liabilities & provisions

(FS00)



Save
Link between Sundry Debtors and advance from Customers
SPRO-Financial accounting(new) - Accounts receivable and accounts payable -

Business transactions - Down payment received – Define reconciliation accounts for
customer down payments(OBXR)

Double click on special GL indicator A

Give a your chart of accounts :DUPS
Enter
Reconciliation account :200005 (sundry debtors finished goods)
Special GL account :100502 (Advance from customers)
END USER AREA
Advance receipt posting:

Path :Accounting- Financial accounting –Accounts receivable-Document entry-Down
payment –Down payment (Tr.code is F-29)
Enter the following data

Press enter

From the menu select –Document –Simulate and save

And save
Go and see the customer account transaction (FBL5N)

Give the customer account no. :504902
Company code :DUPS
Select open items radio button

Select special GL transactions check box
Execute
Sales invoice posting ( Tr code is F-22)

Press enter

From the menu select document –Simulate and save

and save
Transfer of advance from special GL to normal by clearing special GL items:
Accounting - Financial accounting – Accounts receivable - Document entry - Down

payment
Clearing (F-39)

Select process down payment button

Place the cursor in transfer posting column and double click on it
It will display the amount of Transfer posting USD 150000

Save
MAINTAIN TERMS OF PAYMENT
Financial accounting(new) – accounts receivable and accounts payable – business

transactions – incoming invoices/credit memos – maintain terms of payment (OBB8)
Click new entries

Enter the required data
And save
Assign the terms of payment to customer master using xk02

PRESS ENTER
CHANGE THE TERMS OF PAYMENT FROM 0001 TO DUP3

And save
Creation of cash discount granted G/L Account

And save
Assignment of cash discount granted G/L Account for automatic posting

Press enter
And save
Give the cash discount granted G/L Account number (500002)

And save
Customer invoice posting using f-22

Press enter

Press enter

From the menu – document – simulate

And save
Customer payment using F-28

CLICK PROCESS OPEN ITEMS BUTTON

From the menu – document – simulate

Double click on the item appearing in blue colour and give the text as cash discount granted
And save

WEEK 4- PART 2
DUNNING (REMINDER LETTER)

Dunning is the process of sending the reminder letter for outstanding customers.
The dunning process will be defined in the dunning procedure.
We define the following in thedunning procedure-
1.Dunning levels-
It indicates the number of letters which we would like to generate. Maximum 9 letters can
be generated.
2.Dunning Intervals-
It indicates the frequency of letters to be generated i.e the time gap between the letters
which we would like to maintain.
3.Dunning charges-
For sending the letters we collect the dunning charges from the customer.
4.Grace period –
If we give the grace period the dunning letter will be generated after the grace period.
5.Minimum amount The minimum amount which should be due from the customer for the
dunning process.
The dunning procedure will be assigned to The customer master.

Define Dunning Procedures (FBMP)
Path: Spro→Img→ Financial Accounting (new) → Account receivable and Account

payable → Business transaction → Dunning → Dunning procedures.

Click on new procedure.
And enter the following

Dunning procedures – DUPS (Any four code)
Name – Dunning Procedure for DUPS
Dunning intervals in days – 10 days
Number of Dunning level – 4 (Maximum 9)
Interest indicator – 01(OPTIONAL)
Activate the standard transaction dunning check box.
Press two times enter key.

Click on Dunning Text tab
Company code – DUPS
Press enter
Click new procedure button
Enter the company code : DUPS and press enter
Select dunning notices per dunning level check box
And save
Click D unning texts button again

Press enter

Click on Dunning level tab
Click on Charges tab

Press enter
Click on Minimum amount Column

Press enter
Click back arrow key

The system will come back to the first screen
And save
Come back and click on save.
Assign Dunning procedure to customers.

Go to XD02 Change the Customer Master Data

PRESS ENTER

CLICK COMPANY CODE DATA BUTTON

Click on Correspondence tab

Click on save.
Go to F-22 Post customer invoice with 100000 on 15.10.2008 (we don’t get payment up to
21-10.2008 so we are going to send Dunning)
Dunning notice preparation (F150)
Path: Sap easy access → Accounting → Financial accounting → Account receivables →

Periodic processing → Dunning

Click on Parameters tab

And save

Click on Schedule
Output device – LP01

Click on Continue

Start date – 21.10.2008
Activate Start Immediately check box
Click on Schedule
Now you will get the following messages in Status bar.

“Dunning Selection Running”

Now select the message and press enter key until you get the following messages
“Dunning Selection is completed”

Click on dunning printout button

Click on Continue

Start date – 21.10.2008
Press Print

Press enter till you get the following message

Click on Dunning history

Place the cursor on the due items and click on display dunning notice button

Place the cursor on the dunning line items and click on print preview button

Click on Continue

SECOND DUNNING LETTER
To generate the 2nd , dunning letter click back arrow key till you come back to the first
screen
Change the run date

Click parameter tab

And save

Click schedule
Click continue button
Select start immediately check box

Click schedule button

Press enter till you the following message

Click dunning print out button

Click print button

Press enter till you get the following message

Click dunning history button

Place the cursor on due items and click on display dunning notice button

Click print preview button


To view the 3rd and the 4th dunning notice click back arrow key till you come back to the
first screen
Change the run date and repeat the same process
BILL DISCOUNTING
Bills discounted with bank
Normal Accounting SAP Accounting
A) Incase of sales Customer A/c Dr

Customer A/c Dr
(Sundry debtors)
To Sales
To Sales
B) Bill of exchange payment Customer special GL (W) Dr

- No entry -
(Sundry debtors bill of exchange)
To customer a/c with clearing

(Sundry debtors)
C) Bill discounting Bank current A/c Dr

Bank current A/c Dr
To Interest A/c
To Bank bill discounting
To Bank Bill discounting
D) Report view customer wise

/BIllwise due date
wise/Bankwise out standings
available in SAP
E) Reverse contingent liability Bank bill discounting (with clearing) Dr
Bank bill discounting Dr
To Customer special GL(W) with
To Customer
clearing
(sundry debtors will of exchange)
======
Creation of 3 GL masters
Sundry debtors Bill of exchange (current assets).
SBI bill discounting (Secured loans)
Interest on bill discounting ( Expenses)
Creation of GL account (FS00)

Sundry debtors Bills of exchange

Create secured loans account group using OBD4
Click new entries
Enter the required data and save.
Create HSBC Bill discounting G/L Account

And save
Create interest on bill discounting

And save
Link between sundry debtors and sundry debtors bill of exchange
Path:SPRO- Financial accounting (new)-Bank accounting –Business transactions-

Bill of exchange transactions-Bill of Exchange receivable-Post bill of change
receivable-Define alternative reconcile Acct for Bills/Exchange receivable (Tr code is
OBYN)

Double click on special GL indicator :W (Bill of Exchange receivable)

Enter
Reconciliation account :200005 (sundry debtors finished goods)
Special GL account : 200008 Sundry debtors Bills of exchange)
Save
Link for Bank current account, Sundry debtors Account and bank bill discounting
account

Path: up to the bill of exchange receivable at bank - Define bank sub accounts (Tr
code is OBYK)
Chart of accounts :DUPS
Bank account : 200001 HSBC account

Usage select discounting special GL indicator :W
Customer reconciliation account: 200005(sundry debtors)
Bank sub account for liability : 700000 (HSBC bill discounting)
Save
END USER AREA
Sales invoice posting (F-22)

Press enter

Press enter

From the menu Document – simulate

And save
Bill of exchange payment:
Path :Accounting –Financial accounting - Accounts receivable –Document entry-Bill

of exchange –Payment (F-36)

Press enter

From the menu click on choose open items button

Click process open items

The not assigned field will be equal to zero
And save
Bill discounting:

Path :Accounting –Financial accounting (new) (new)- Accounts receivable- Document
entry –Bill of exchange –Discounting (F-33)

Press enter

Click on select bill of exchange button


And save
Reverse contingent liability :
Path :Accounting-Financial accounting (new) (new) –Accounts receivable-Document

entry- Bill of exchange –Reverse contingent liability (F-20)

Give the document date& Posting date :11/13/2012
Type :DA
Company code :DUPS
GL account :200008 (Sundry debtors bill of exchange)
Usage :Select discounting
Due by :11/30/2012

Customer :504902
Select edit line items button
Ignore the all warning message and press enter
And save
From the menu document – display

CORRESPONDENCE
Financial Accounting (New) – Accounts receivable and accounts payable – customer

accounts – Line items – Correspondence – Make and check settings for
correspondence – Define correspondence types. ( OB77)


Select correspondence SAP06 and click copy as button
Change the correspondence type to DUPS and press enter and save
Request correspondence

Accounting – financial accounting – accounts receivable – Account- correspondence –
request ( FB12)
PRESS ENTER

Select SAP06

CLICK CONTINUE

Maintain ( F.64)
Same path next line

Click execute

Double click on the correspondence

Press enter
Press continue

When Customer and Vendor as Both are same
Go to XD01 Create a customer account Customer name Chris International Ltd
Go to XK01 Create a Vendor account name Chris International Ltd
Change the Customer Master data XD02

Press enter

Click on control data tab

Vendor – 402306
Click on company code data field

Click on payment transaction tab
Activate Clearing with Vendor

and Save
Change the Vendor master data XK02

Vendor – Chris International Ltd
Company code – DUPS
Click on Control data check box in general data filed
Click on payment transaction check box in company code data field
Press enter key

Customer –chris international ltd( 504906)
Press enter key

Activate the clearing with customer
Click on save
Document type setting (OBA7)
Go to OBA7 for display of documents type

Select Documents type – KZ
Double click on KZ Documents type
Activate vendor check in account type allowed

Save it
Come back
Click on Position
Documents type – DZ
Double click on DZ Documents type

Activate Customer check in account type allowed
Save it
Post vendor invoice with 100000 Using F-43
Post Customer invoice with 50000 F-22

Post the Vendor outgoing Payment 50000 through bank using F-53
Click on process open item tab

From the menu Document - simulate
Check the customer status FBL5N


Check the Vendor Status FBL1N


COMMON TERMS OF PAYMENT
CLICK NEW ENTRIES

And save
Assign the payment terms to vendor master using XK02

PRESS ENTER

And save
Assign the payment terms to customer master using XD02

PRESS ENTER

And save
Post the vendor invoice using F-43

And save
Post the customer invoice using F-22

And save
Vendor payment F-53



Double click on the item appearing in blue colour
Give the text as cash discount granted and cash discount received
And save

WEEK 5 - PART 1
CASH JOURNAL
Cash journal shows the cash balance at any time (by adding the cash receipts and
deducting the cash expenses, from the days opening cash balances) the cash journal is a
compact journal used to record the transaction in a double entry format.

GL Account Creation
Go to FS00 Create the following GL Account
Cash Account – Assets
Click control data

Click create/ bank/ interest

And save
Settings in IMG
Path: Spro→Img→ Financial Accounting new → Bank Accounting → Business

Transaction → Cash journal
A) Define Number range intervals for cash journal documents (FBCJC1)

Click on change intervals
Click on insert intervals

Press enter key
and Save
Come back wise
B) Setup Cash journal (FBCJC0)

Click on new entries

200007 is Cash a/c
Press enter key and Save

Come back wise
C) Create, Change, Delete, Business transaction (FBCJC2)
Click new entries

Set up print parameters for cash journal
Same path next line

Click new entries
And save

Cash Posting (FBCJ)
Path: Sap easy access →Accounting→ Financial Accounting → Banks → Incomings

→ Cash Journal
Click on change cash journal tab

All the fields will be blank when you are entering the data for the first time
Click on Cash receipts tab
Enter the required data in the cash receipts

Click post button at the top
Click on Cash Payment Tab

Enter the required data and click on post button at the top
After posting the transaction the transaction will appear as shown above
Similarly for customer payment click cash receipts tab
Enter the required data in the fields and click on post button

For vendor payment click on payment tab
Enter the required data and click on post button
Finally the cash journal will appear like this

ASSET ACCOUNTING
• SAP Asset Accounting covers the complete lifecycle of an asset, which starts when
the purchase order is created for asset purchase or the asset is capitalized, to its
retirement at the end of its useful life..
• During this time, the system calculates the appropriate depreciation values and
presents this information in many different reports
LIFECYCLE OF FIXED ASSET CAN BE REPRESENTED IN THE FOLLOWING
MANNER

 The Asset Accounting (FI-AA) component is used for managing and supervising
fixed assets with the SAP.
 In SAP Financial Accounting, it serves as a subsidiary ledger to the FI General
Ledger, providing detailed information on transactions involving fixed assets.
 Asset Accounting is a subsidiary ledger of Financial Accounting. The appropriate
General Ledger accounts are updated each time you post the transaction related to
assets.
 Asset Master is created at the Sub-ledger level and it will be linked to the Asset
class.
 Asset Master updates the transactions at the individual asset level i.e the
transactions are recorded at the asset master level.
 Asset classes are the most important means needed for structuring the fixed assets.

ACCOUNT DETERMINATION -
One of the important functions of asset class is to establish a connection between the
asset master and the corresponding G/L accounts. This connection is created by the
account determination key in the asset class.
SCREEN LAYOUT
It specifies the field status of the asset master i.e the fields which are required,
optional and suppressed for the asset master.
NO.RANGES
The assignment of numbers to the individual assets is controlled by the asset class.
CHART OF DEPRECIATION
 The chart of depreciation is a catalog of depreciation areas structured

according to various business aspects. You can specify the characteristics and
thereby the significance of the individual depreciation areas in each chart of
depreciation
 You will generally need values for fixed assets for various business and legal
purposes (for example, for book depreciation, cost-accounting depreciation
and so on). In SAP it is possible to manage values in parallel in as many
depreciation areas as you want.
 The country-specific charts of depreciation, which are supplied as standard,
are for reference purposes only.
The following things are required for asset accounting process

SAP supports the following direct types of depreciation:
Ordinary Depreciation: planned reduction in asset value due to normal wear and
tear.
Special Depreciation: depreciation that is solely based on tax regulations.
Unplanned Depreciation: depreciation resulting from unusual circumstances, such as
damage to the asset, that lead to a permanent reduction in its value
Depreciation methods;

Straight Line Method depreciation method (SLM)
Written down value depreciation method (WDV)
Depreciation keys Rate +Method
5% SLM Rate
5% WDV Rate
Transaction types
100 External acquisition
110 In-house production \
210 Retirement with revenue
Asset debit
The debit can be use of External acquisition (Outside purchase) /In house production/Inter
unit transfer/Inter company purchase.
With transaction type we will come to know because of what it is debited.
Posting keys:
70 Asset Debit

75 Asset Credit
Asset accounting is based on 4 rules:

1. Sub asset master is to be created with reference to main asset master.
2. Main asset master is to be created with reference to asset class
3. Account determination is specified in asset class
4. For account determination we assign GL accounts based on the nature of transaction.
CUSTOMIZATION
Copy reference Chat of Depreciation /Depreciation Area:
Path: SPRO-Financial Accounting (New) - Asset Accounting – Organizational

structures – Copy reference Chart of Depreciation /Depreciation area (Tr code is
EC08)

Double click on copy reference Chart of Depreciation
From the menu select organizational object
Copy org. object (F6)

Enter
Ignore the message press enter
Enter
We get a message chart of depreciation 1DE copy to DUPS
Enter
Select back arrow

Double click on specify depreciation of Chart of Depreciation

Chart of Depreciation :DUPS

Enter
Change the description to Chart of Depreciation for DUPS
Select back arrow

Double click copy /delete depreciation areas
Give the Chart of Depreciation :DUPS

Enter
Select areas11,12,13,17,20,31,32,41,42,43&50
From the menu select Edit Delete

Save

Before this step ensure that zero tax codes are assigned to your company code
Assign Chart of Depreciation to Company code
Path :Up to organization structure the path is same – Assign Chart of Depreciation
to company code (Tr code is OAOB)


Enter
For company code DUPSassign Chart of Depreciation DUPS
Save
Specify account determination
Path :Up to the organizational structure the path is same –Asset Class-Specify
account determination

Save
Create screen layout rule

Same path

Select screen layout 1000
Select copy as button

Change screen layout 1000 to DUBU
Name :BUILDINGS
Change screen layout 1100 to DUCW
Name :CAPITAL WORK IN PROGRESS
Change screen layout 2000 to DUPM
Name :Plant& Machinery
Enter & Save
Define number range intervals
Path :Same path (Tr code is AS08)

Company code :DUPS

& Save
Define asset classes:
Path :Same path (Tr code is OAOA)


Save
Note: AUC stands for Asset Under Construction
Select next entry button (F8)

Save
Select next entry button (F8)

Save
Select include asset under inventory data check box:
Inventory means fixed inventory, whenever assets are created they will be included in
fixed assets inventory.

As per company’s auditor’s report order (CARO) – the auditor will state whether fixed
assets have been physically verified by management or not.
Incase of big companies physical verification is in a phased manner
When we create an asset master – There is a field called last verification date
Asset nos Last verification date

1 31.03.2012
2 31.03.2007
3 31.03.2012
4 31.03.2012
5 31.03.2007
In the report we give the report date – From 01.04.2007 to 31.03.2012 we get the list of
asset verified during the year
1 31.03.2012
2 31.03.2012
3 31.03.2012
4 31.03.2012
Define screen layout for asset master data:

Path :SPRO -Financial Accounting (New) -Asset accounting - Master data - Screen
layout - Define screen layout for asset master data

Double click on define screen layout for asset master data

Select layout :DUBU
Double click on logical fields groups folder

Select 2 posting information

Double click on field group rules folder
Capitalization data make it required entry field
Select main number check box
Select sub-no check box
Select copy check box
And save
Repeat the same process for screen layout DUCW AND DUPM.
Define screen layout for asset deprecation areas:
Same path (Tr code is AO21)

Select screen layout 2000 deprecation on asset sub no.level

Double click on field groups folder
Depreciation keys make it required entry filed
Select main no.check box
Select sub-no.check box
Select copy check box
Save

Determine areas in the asset class
Path :SPRO-Financial accounting (NEW) –Asset accounting-Valuation –Determine

depreciation areas in the asset class (Tr.Code is OAYZ)

Click position button

Enter
Double click depreciation areas folder

Deselect deactivation check box for area 01 Book depreciation
Layout :Select 2000 depreciation on asset sub-no level
For area 01 layout 2000
Save
Select back arrow
The same procedure to be followed for remaining two asset classes
DUCW200
DUPM300
WEEK 5 - PART 2

Create account groups using OBD4
Click new entries
And save
Creation of General ledger master FS00

Buildings a/c

Click control data


And save
Capital work in progress

Click control data
Click create bank interest

And save
Plant and machinery

Click control data

And save
Accumulated depreciation on buildings

Click control data


And save
Accumulated depreciation on plant and machinery

Click control data

And save
Creation of asset sale a/c

Click control data


And save
Profit on asset sale

Click control data

And save
Loss on asset sale a/c

Click control data

And save
Loss due to asset scrapping a/c

Click control data
Click create bank data

And save
Depreciation a/c

Click control data

And save
Assignment of accounts for automatic postings:
Path: SPRO-Financial accounting(New) – Asset accounting - Integration with the

general ledger - Assign GL accounts.
The Transaction code is AO90

Give the your Chat of Depreciation :DUPS
Enter

Select chart of accounts :DUPS
Double click on account determination folder
Select account determination :DUBU1000

Double click on Balance sheet accounts folder

Give the G/L Account numbers and save
Double click on depreciation folder
Accumulated depreciation for ordinary depreciation 600201 accumulated depreciation

buildings
Expense account for ordinary depreciation 600301 Depreciation account
Save

Select account determination :DUCW 20000 CAPITAL WORK IN PROGRESS
Double click on Balance Sheet accounts folder
Give the G/L Account numbers and save

For Capital work in progress no depreciation will be calculated hence need update the
depreciation folder with the G/L Accounts.
Select account determination :DUPM3000 Plant and Machinery
Double click on balance sheet account folder

Give the G/L Account and save
Double click on depreciation folder
And save

Specify document type for posting of deprecation:
Up to integration with general ledger the path is same –Post-Deprecation to the GL –

Specify Document type for posting deprecation(Tr code is OBA7)

Double click on define document type
Select type AF Deprecation postings

Note the number range 04
Select number range information button

Select intervals button
Enter and save
Specify intervals and posting rules:

Same path (next step) (Tr code is OAYR)

Click position

Give company code DUPS
Press enter
Select the company code
Double click on posting rules folder
Select monthly posting radio button
Save

Specify rounding for net book value and /or deprecation:
Path :SPRO-Financial accounting(new) - Asset accounting - Valuation – Amount

specifications (company code/Deprecation area) – Specify rounding of net book
value and /or deprecation

Click position button

Press enter
Select company code :DUPS
Double click on rounding specifications folder
Select area 01 book deprecation

Select automatically calculated depreciation check box
Select arithmetic rounding radio button
Save
Deprecation keys creation (Rate+ Methods)
1. Define base methods

2. Define declining balance method

3. Define period control methods
4. Define period control methods
5. Maintain deprecation key
First steps will be assigned in 5th step and 5th step will be assigned in Asset master.
1. Define base methods:
Path :SPRO –Financial accounting(New) -Asset accounting-Depreciation –

Valuation methods –Depreciation key-Calculation methods –Define base methods

Base method :0014 Ordinary :Explicit percentage (after end of life)
A) Ordinary deprecation
B) Explicit percentage –creation percentages rate given in Companies Act Schedule
XIV
C) After end of line –If the next box value becomes zero no depreciation should be
calculated.
Define declining balance methods

Same path

Define multi level methods: (Tr code is AFAMS)
same path

Save
Double click on levels folder
save

Double click on Multi level method folder
Select next entry button
Save
Double click on levels folder

Save
Maintain period control methods:

Same path

save
Maintain deprecation key:

Same path Tr code is AFAMA


Save
Double click on assignment of calculation methods folder

Save
Save

Double click assignment of calculation methods folder
Save
Select back arrow four times
Select depreciation key :DUS1
Select activate button

Select depreciation key DUS2
Select activate button
Save
FI END USER AREA:

Create of main asset master:
Path :Accounting-Financial accounting-Fixed assets-Asset –Create –Asset (The

Transaction code is AS01)

Enter
Select time dependent tab
Select depreciation area tab

Ordinary depreciation start date: 04/10/2012
Save
In the same way create 5 asset masters with different capitalization date
Creation of sub asset master
Path :Up to fixed assets the path is same – Asset – Create-Sub number –Asset
(The transaction code is AS11)

Enter

Select time dependent tab
Select deprecation area tab

Save
Main asset purchase posting:
Path :Accounting-Financial accounting-Fixed asset –Posting – Acquisition-External

acquisition -With vendor (Transaction code is F-90)

Press enter

Enter the second line item
Posing key :70 Debit asset
Account :Select 2001 -0 Plant and Machinery no.1
Transaction type :Select 100 External asset acquisition
Enter


And save
In the same way post the entry for purchase of all the five assets and the sub asset
purchase
Depreciation run:
Path :Accounting –Financial accounting –Fixed assets -period processing –

depreciation run –Execute (Tr code is AFAB)
NOTE THE FINANCIAL YEAR 2012 WILL BE FOR ASSET ACCOUNTING ON

03/31/2013 .

THE YEAR IS CLOSED FOR COMPANY CODE DUPS THAT’S WHY WE ARE
USING COMPANY CODE GEST ONLY FOR ASSET ACCOUNTING.AND THE
FINANCIAL YEAR WE ARE USING FOR GEST IS 2013.
ALL OTHER ENTRIES WILL REMAIN THE SAME

Give the company code :GEST
Fiscal year :2013
Posting period :1

Select planned posting run radio button
Select test run check box
(Note :If you run in middle of year select unplanned posting run radio button)
Execute

The system will show the calculation of depreciation and will give a message about the
successful completion of test run and the creation of document.
The system will not display the calculation of depreciation if there is any error. In order to
know the error Select error list button (F7) (Right side corner)

Select back arrow
Deselect text run check box
From the menu select program Execute in back ground

Enter
Select continue button

Click Immediate button

Save
System will give the following message
To check whether the job or not from the menu select System –Jobs-Job overview-

select execute button

To view the document posted: (Tr code is FB03)
Select document list button

Give the company code :GEST
Document type :AF
Execute
Double click on document no.

It will show the document posted for depreciation.
ASSET SALE
Path: Accounting –financial Accounting –Fixed assets –Posting –Retirement –

Retirement with revenue –with customer (F-92)

Enter

Press enter

From the menu- document – simulate

Enter
ASSET SALE WITHOUT CUSTOMER
Path: Accounting –financial Accounting –Fixed assets –Posting –Retirement –

Retirement with revenue –without customer (ABAON)

And save
To view the posted document use transaction code FB03

Click document list button

Double click on document number

ASSET TRANSFER
Path: Accounting –Financial accounting –Fixed assets –Posting –Transfer –Transfer

with in company code (ABUMN)

Click master data button
A new screen will appear in which update the business area and press enter

Give the capitalized on 08/20/2012
Select depreciation area tab

Give the depreciation key :DUS1
Useful life :10 years
Period :6
Select back arrow
Enter
View the document using FB03
Give the document no.67
Company code :DUPS
Fiscal year :2012
Enter

Asset scrapping
Asset Scrapping:
Path : Accounting –Financial accounting –Fixed Assets –Posting –Retirement- Asset

retirement by scrapping (Tr code ABAVN)

Save
Go and see the document (FB03)
Document no. :68

Company code :DUPS
Fiscal year :2012
Enter

Asset Impairment Procedure
Asset impairment refers to a sudden decline in usability of a fixed asset. The impairment
could be triggered by such issues as asset damage, obsolescence, or legal restrictions on
asset use.
SAP CONFIGURATION
Create asset master using AS01

Press enter

Click time dependent tab

Click depreciation areas tab
And save
CREATION OF G/L ACCOUNTS USING FS00
1.UNPLANNED ACCUMULATED DEPRECIATION ON PLANT AND
MACHINERY

CLICK CONTROL DATA TAB

CLICK CREATE/BANK/INTEREST

AND SAVE
2.CREATION OF UNPLANNED DEPRECIATION

CLICK CONTROL DATA TAB

CLICK CREATE/BANK/INTEREST TAB

And save
ASSIGNMENT OF ACCOUNTS FOR AUTOMATIC POSTING
Path: SPRO-Financial accounting(New) – Asset accounting - Integration with the
general ledger - Assign GL accounts. (T code is AO90)

PRESS ENTER
Select the chart of accounts and double click on Account determination folder
Select the account determination and double click on depreciation folder

And save
IMPAIRMENT OF ASSETS
POSTING FOR ASSET ACQUISITION- F-90

PRESS ENTER

PRESS ENTER

FROM THE MENU DOCUMENT – SIMULATE
AND SAVE

EASY ACCESS- Accounting – Financial accounting – Fixed Assets – Posting –
Manual value correction – Unplanned Depreciation (T.Code ABAA)

NOTE – TRANSACTION TYPE 650 IS USED FOR UNPLANNED
DEPRECIATION ON NEW ACQUISITION
PRESS ENTER

And save
To view the Accounting document From the menu select Transaction – Display

DEPRECIATION RUN USING AFAB


Click yes
Click back arrow button

Deselect test run check box and from the menu select Program – execute in
background
Press enter
Press enter

Select immediate button at the top

And save
System will give a message

To execute the program from the menu select System – Services – Jobs – Job
overview


Select job RAPOST2000 Check box
Click on Spool button

Select the spool no check box and click on display button
To view the posted document use T.Code FB03


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ACCOUNT PAYABLE

• Activities related to purchase of Raw Materials and purchase of other items on

Contact: - 9704017167, info@vtechsoft.in, www.vtechsoft.in

Basic settings for account payable:

Contact: - 9704017167, info@vtechsoft.in, www.vtechsoft.in

Path :SPRO –Financial accounting (New) – Accounts receivable and accounts

Contact: - 9704017167, info@vtechsoft.in, www.vtechsoft.in

Account group :DURM

Name :Raw material vendors for DUPS

Contact: - 9704017167, info@vtechsoft.in, www.vtechsoft.in

Contact: - 9704017167, info@vtechsoft.in, www.vtechsoft.in

Reconciliation account make it required entry field

select save button

press enter to save in your request

select next entry button

Account group :DUOT

Name :Other vendors for DUPS

Contact: - 9704017167, info@vtechsoft.in, www.vtechsoft.in

Contact: - 9704017167, info@vtechsoft.in, www.vtechsoft.in

Reconciliation account : Make it required entry filed.

Create number range for vendors account:

Contact: - 9704017167, info@vtechsoft.in, www.vtechsoft.in

Contact: - 9704017167, info@vtechsoft.in, www.vtechsoft.in

Contact: - 9704017167, info@vtechsoft.in, www.vtechsoft.in

From no. :400000

Select interval button once again

From No. :400501

Contact: - 9704017167, info@vtechsoft.in, www.vtechsoft.in

Ignore the warning message press enter

Assign number range to vendor account groups:

Contact: - 9704017167, info@vtechsoft.in, www.vtechsoft.in

Account group :TARM

For account group :DURM

Number range :30

Account group : DUOT

Number range :31

Press enter to save in your request

Define tolerance group for vendor

Contact: - 9704017167, info@vtechsoft.in, www.vtechsoft.in

Contact: - 9704017167, info@vtechsoft.in, www.vtechsoft.in

Company code :DUPS

Contact: - 9704017167, info@vtechsoft.in, www.vtechsoft.in

Contact: - 9704017167, info@vtechsoft.in, www.vtechsoft.in

Sundry creditors raw material GL Account

Give the GL account no :300001

Company code :DUPS

Click create button

Contact: - 9704017167, info@vtechsoft.in, www.vtechsoft.in

Contact: - 9704017167, info@vtechsoft.in, www.vtechsoft.in

Field status group change to GO67

Contact: - 9704017167, info@vtechsoft.in, www.vtechsoft.in

Contact: - 9704017167, info@vtechsoft.in, www.vtechsoft.in

Give the G/L A/c number 200002

Company code: DUPS

And click create button

Contact: - 9704017167, info@vtechsoft.in, www.vtechsoft.in

Contact: - 9704017167, info@vtechsoft.in, www.vtechsoft.in

Contact: - 9704017167, info@vtechsoft.in, www.vtechsoft.in

Contact: - 9704017167, info@vtechsoft.in, www.vtechsoft.in

Path : Accounting - Financial accounting – Account payable-Master records -

Contact: - 9704017167, info@vtechsoft.in, www.vtechsoft.in

Account group :DURM

Contact: - 9704017167, info@vtechsoft.in, www.vtechsoft.in