SAP FICO Tutorial – SAP FI & SAP CO Training Tutorials

SAP FICO Tutorial : Free SAP FI Training

SAP FICO tutorial – Free SAP FI & SAP CO training tutorials, learn how to
implement and configure SAP FI (Financial Accounting) and SAP CO
(Controlling) module step by step with real time project scenarios and issues.
This SAP FICO training tutorials are designed for all beginning and
professionals learners that helps to boost your knowledge on SAP FICO
module.

SAP FICO training

FICO training

SAP FICO stand for Financial Accounting and Controlling, it is one of the
important module of SAP R/3 system that handles all the financial activities
of an organization. SAP FI module maintains the day to day financial
transactions on real time basis and generates the reports for external
purpose. SAP CO module is used for organizational internal reporting purpose
and provides the information for the management for effective decision
making.

SAP FICO module can be integrated with other SAP modules such as sales &
distribution module, Human resource management, Production
planning, Material Management, Project systems, etc. Posting that are made
in these SAP modules with financials implications that replicates the data in
FICO module on real time basis.

Important sub modules of SAP FICO:-

The important sub-modules of SAP Financial Accounting (FI) are

 General Ledger Accounting : – SAP FI-G/L records all the

transactions that posted in SAP and display the real-time status of the
financial accounts of an organization.

 Accounts Payable: – It is a sub ledger accounting that records all the

business transactions of vendor purchase activities and generate
automatic postings in general ledger accounting

 Accounts Receivable: – It is a sub ledger accounting that records all

the accounts of customer’s sales activities and generates automatic
postings in G/L accounting.

 Bank Accounting: – It controls and manages all the activities of bank

transactions of an organization

 Asset Accounting: – SAP FI AA sub-module manages and records the

assets of an organization.

The important sub-modules of SAP Controlling (CO) are

1. Cost Element Accounting: – In Controlling, all the costs and

revenues are represented through cost elements. All the cost elements
specifies the nature of expenditure and income. The different types of
cost elements are Primary cost elements and Secondary cost elements.

2. Cost Center Accounting: – It provides the information of costs that

are incurred in the organization.

3. Internal Order Accounting: – It tracks the costs of a specific job,

service or a task. Internal order are used as a method to collect those
costs and business transactions that are related to task.

4. Profit Center Accounting: – Profit center manages and controls the

organizations profits and losses.

5. Product Cost Controlling: – Product cost enables the management

to analysis the product costs and enables to take effective decisions on
prices to make the products.

SAP FICO Organizational Structure

The important organizational elements of SAP FICO are

Operating Concern: – It is highest level of organizational unit for both SAP FI

& CO module, where you can general profitability reports.
Company: -The creation of company in SAP is optional, it is only required to
consolidate two or more company codes data at country level or segment
level.

Company Code: – The creation of company code in SAP is mandatory, at

least one company code to be implemented in SAP. It is a legal entity of
organizational element and you can general financial statements for
reporting.

Credit Control Area: – It is a mandatory organization unit of credit

management module as it controls the credit limit for the customers at time
of sales order process.

What do you learn from this SAP FICO tutorial?

 Step by step SAP FICO module implementation process with screen

shots.

 Real time FI & CO module issues and scenarios with examples &
solutions.

 Interview questions with answers

 Certification guide

 SAP end users guide with practice materials.

SAP FICO training Syllabus

SAP FICO training

Refer SAP FI & CO tutorials step by step as per syllabus wise, so it helps you
to learn SAP FICO module in an easy method.

SAP FICO Enterprise Structure

1. Define Company (Group company)

2. Define company code

3. Assign company code to company

4. Define business area

5. Define functional area

6. Define credit control area

7. Assign company code to credit control area

 8. Define financial management (FM) area

9. Assign financial management area to company code

10. Define segment in SAP

SAP FI Global Accounting Parameters

1. Maintain chart of accounts

2. Assign company code to chart of accounts

3. Maintain fiscal year variant

4. Create account groups

5. Create retained earnings account

6. Define posting period variant

7. Define field status variants in SAP

8. Assign variant variant to company code

9. Define open and close posting period variant

10. Maintain tolerance groups for general ledger accounts

11. Maintain tolerance group for employees

SAP FI Accounts Receivable

1. Create customer account groups

2. Maintain number ranges for customer account groups

3. Assign number ranges to customer account groups

4. Define Risk Categories

5. Maintain tolerance group for customer accounts

6. Define sundry debtor account (G/L)

SAP FI Accounts Payable

1. What is SAP accounts payable

2. How to define vendor accounts groups with screen layout

3. Create number ranges for vendor accounts

4. Assign number ranges to vendor account groups in SAP

 5. Maintain terms of payment

6. Define accounts for cash discounts taken

7. Define sundry creditors account

8. Create vendor master record

SAP Tax Accounting

1. Define tax calculation procedure

2. Assign country to calculation procedure

3. Assign tax codes for non taxable transactions

4. Create tax codes for sales & purchases

SAP FICO – Bank Accounting

1. How to define bank key in SAP

2. How to define house banks in SAP

3. Create check lots

4. Customize Automatic payment program

SAP Asset Accounting

1. Copy reference chart of depreciation

2. Assign chart of depreciation to company code

3. Specify account determination

4. Maintain number range intervals for assets

5. Define asset classes in SAP

Continue to read: SAP CO (controlling) training tutorials.

How to Define Company in SAP (Group Company)

How to Define Company in SAP

The definition of company in SAP systems is optional. Company is an

independent organizational element which is required to consolidate two are
more company codes data at country level or segment level or continental
level. Under group company, you generate consolidated financial statements
as per requirements of an organization.
Example: – Reliance Group, Wipro group, etc.

How to create company in SAP

You can define company in SAP by using:-

 Transaction code: – “OX15“

 Navigation: – SPRO – SAP Reference IMG – Enterprise Structure –

Definition – Financial Accounting – Define Company.

Step 1 : Enter Transaction code “OX15” in the SAP commend field as shown
below image and enter to continue.

Step 2: On change view “Internal trading partners”: overview screen, click

on “New Entries” button to define company in SAP

Step 3 : On “New Entries screen, update the following details.

 Company: – Enter a key that identifies company group in SAP. In our

case we have updated “TKART” for creation of new company.

 Company Name: – In this field you need to updated full descriptive

name of company.

 Name of company 2:- If second name of company available, update

here or keep it as blank.

Detailed Information

 Street: – Enter street name of company located

 Postal code: – Enter postal pin code

  City: – Update city name, in our case we have updated “Bangalore”

 Country: – Here you need to updated country key. e.g. for India – IN,
For United State – US, etc.

 Language key: – By default our language is English, so language key

is “EN”

 Currency: – Enter currency key in which transactions are being

maintained for the group company. It is called as home currency or
local currency.

Note:- You can choose keys from the list for City, Language and Currency by
pressing F4 key from your keyboard.

Step 4: After updating all the required details, click on save button to save
the company details. Now you are prompted for customizing request, click on
new entries button to create new customizing request.
Now update description of customizing request and press enter to continue.
Here we have updated description as SAP FICO configuration.

Successfully we have created company in SAP FICO.

What is Company Code? & How to Define Company Code in SAP

In this SAP tutorials we will learn what is company code in SAP and how to
define company code “TK01″(TK Software limited) step by step using
recommended configuration settings.

What is Company Code in SAP

Company code is an independent organizational unit which is registered

under companies act 1956. Under company code you can generate
individual financial statements like profit & loss account and balance sheets.

 The definition of company code in SAP is mandatory.

 It is mandatory to create at least one company code for implementing

the SAP financial accounting module.

You can define company code in SAP by using navigation method or

transaction code.
  Navigation: – SPRO – IMG – Enterprise Structure – Definition – Financial
Accounting – Edit Copy, Delete, Check company code

 Transaction code: – OX02

 Database Table: – T880

How to define company code in SAP

Step 1) Enter transaction code “OX02” in the SAP commend field and enter
to continue.

Step 2) On change view “Company Code”: Overview screen, displays with

the list of company codes with their names. Click on “New Entries” button to
create new company code as per organizational requirements.

Step 3) On new entries company code screen, update the following details.

 Company code: – Enter 4 digits alphanumeric code that identifies

company in SAP

 Company name: – Update the name of the company

 City: – Enter the name of city in which the company is

located. spaceman slot

 Country: – Enter the name of country. Press F4 for possible entries and
you can select the code from the list.

 Currency: – This currency is also called as home currency or local

currency.

 Language: – Our default language key: English (EN).

Step 4) After updating all the required details, click on save button to save
the configured data.

Now the system prompts the another screen to update the full address of
company. Update all the required address details of company and press enter
to save the data.
Step 5) Now you get the transport request number, save the request. slot
garansi kekalahan
Successfully company code “TK01” is created in SAP system. Continue to
learn how to assign company code to company in SAP.

How to Assign Company Code to Company in SAP

How to Assign Company Code to Company in SAP

In this SAP tutorial you will learn procedure to assign company code to
company in SAP. After successfully creation of company code and company
in SAP, you need to assign company code company in SAP system.

Why Assignment

The link between company and company code in SAP is established through
a assignment of company code to company.

Configuration steps

You can assign by using one of the navigation method or transaction code.

 Navigation: – SPRO – IMG – Enterprise Structure – Assignment

– Financial Accounting – Assign company code to company

 Transaction code : – OX16

Step 1) Enter Transaction code “OX16” in the SAP command field and press
enter to continue.

Step 2) On change view “Assign company code -> Company”:Overview

screen, click on position button and give your company code key. Now your
company code displays at the window.
Step 3) Now update your company key “TKART” in the given field.

Step 4) After assignment of company code to company, click on save button

and save the configured data.
Successfully we have assigned company code “TK01” to company code
“TKART” in SAP systems.

Define Business Area in SAP | Create Consolidation Business Area

How to Define Business Area in SAP

Business area in SAP is an organizational unit within accounting that can be

classified as geographical wise or product wise as per the requirements of an
organization.. Under business area, you generate financial statements of
balance sheet and profit & loss account for internal reporting.

 The definition of business area in SAP is optional.

 You can maintain number of business areas in SAP as per company

needs.

 To post items in business area, you need to enter business area when
you enter the business transactions.

 Examples of business areas are product lines, branches, etc.

You can define business area in SAP through navigation method or

transaction code.

 Navigation: – SPRO – Enterprise Structure – Definition – Financial

Accounting – Define business area

 Transaction code: – OX03

Step 1) Enter transaction code “OX03” in the SAP command field and enter
to continue.

Step 2) On change view “Business areas”: Overview screen, Click on “New

Entries” button to create new business areas as per the requirements of
company.

Step 3) On new entries of business areas screen, update the following

details.

 Business Area: – Give the four digits key that identifies that business
area in SAP.

 Description: – Update the descriptive text of business area.

Scenario: We have defined four business areas as per geographical wise.

Business
Description
Area

Bangalore Business
TK10
Area

Hyderabad Business
TK20
Area

Mumbai Business
TK30
Area

Vijayawada Business
TK40
Area

Step 4) After updating the details, click on save button to save the
configured business areas data.

Now you are prompted for customizing request number, choose request and
save the details.
Successfully we have created new business areas in SAP.

Maintain consolidation business area in SAP

Consolidation business area specifies the central business segments within a

company. If you maintain consolidated business area in SAP, it is mandatory
to assign business areas to consolidated business areas.

 Navigation: – SPRO – Enterprise Structure – Definition – Financial

Accounting – Maintain consolidation business area.

Click on “New Entries” button.

Enter consolidation business area key and its description.

Click on save button and save the details.

Define Functional Area in SAP | Create Functional Area

How to define functional area in SAP FICO

The following SAP tutorials explains how to define functional area in SAP
financial accounting step by step based on real time business scenarios.

Before referring this configuration steps, we recommend to read how

to define company code in SAP and how to create business area in SAP.

What is Functional Area?

In SAP, functional area is an organizational unit that sorts operating

expenses incurred based on the activities. For example Production,
Administration, sales, research & development, etc.

 Functional areas allows to create financial statements to meet the US

GAAP requirements.

 If the organization is following cost of sales accounting, it is mandatory

to create functional area in SAP and properly assign in various master
data.

 You can enter functional area in the master data of

o G/L account

o Cost element

o Cost center

o Orders

o WBS elements, etc.

Scenario: – In this configuration, we are going to define the following

functional areas in order to meet the organizational requirements.

Functional
Description
Area

TK11 Production

TK12 Administration

TK13 Sales

TK14 Research &

 Development

You can define functional area in SAP by using any one of navigation method
or transaction code.

 SAP Menu Path: – SPRO – IMG – Enterprise Structure – Definition

– Financial Accounting – Define functional Area

 T – code: – OKBD, FM_FUNCTION

 Database Table: – TFKB, TFKBT.

Step 1) Enter transaction code “FM_FUNCTION” in the sap commend filed

and enter to continue.

Step 2) From process functional area screen, enter the four digits key that
identities functional area in SAP and click on create functional area button to
define the functional areas as per the organizational requirements.

Step 3) Now update description of functional area.

Step 4) Click on save button and save the configured functional area details.
You get a message as “Functional area TK11 has been saved.

Successfully we have created new functional area “TK11” in SAP system.

How to Define Credit Control Area in SAP

In this SAP tutorials you will learn what is credit control area and how to
define credit control area in SAP FICO step by step with real time scenario.

How to create credit control area in SAP

Important SAP configurations to refer:

 Define risk category

 Maintain fiscal year variant

 Define credit groups

What is Credit Control Area?

Credit control area in SAP is an organizational element that controls and

monitors credit limits of customers.

A credit control area can consists one or more company codes, but you can
not assign company code to more than one credit control area in SAP.

Scenario: – We need to define the following configuration.

Credit
Description
Control
 Credit Control Area for TK
T120
Software

Credit control area configurations are generally shared by SAP SD

consultants and SAP FICO consultants. Some of the configurations are
implemented by SD consultants, so it is considered as mix of SAP FI and SD
consultant.

 Navigation: – SPRO – IMG – Enterprise Structure – Definition – Financial

Accounting – Define Credit Control Area

 Transaction code: – OB45

 Database Table: – T014, T014T

Step 1) Enter T-Code “OB45” in the SAP command field and enter.

Step 2) On change view “credit control areas” overview screen, click on

“New Entries” button to configure new credit control area as per company
requirements.

Step 3) On new entries credit control area screen, update the following
details.

 Cred.control.area: – Give the four digits alphanumeric key that

identifies credit control area in SAP.

 Description: – Update the descriptive text of credit control area. Now

this field remains blank, it allows you to update description after saving
this key.

 Currency: – Give the currency key

 Fiscal year variant: – Update the fiscal year variant key.

  Risk Category: – It is required to define the risk category of different
nature and assign them to credit control area.

 Credit Limit: – Under this field, you need to maintain credit limits for
customers.

 Organizational data: – If you choose all company codes options, than

this credit control area is applicable for company codes.

After updating the required details, click on save button to save the
configured detail.

Step 4) Now go back to main credit control area screen, click on position
button and give credit control key. So your credit control area key display at
the top of window screen.
Step 5) Update the descriptive text of credit control area and click on save
button to save the details.
Successfully we have defined credit control area in SAP. Next configuration
step is assignment of credit control area to company code in SAP.

How to Assign Credit Control Area to Company Code in SAP

Assign Credit Control Area to Company Code in SAP

In this SAP tutorial you will learn how to assign credit control area to
company code in SAP step by step. In our previous SAP tutorials we have
configured how to define credit control area in SAP.

Note: – After you define credit control area in SAP, it is mandatory to assign
to company code. Ensure that appropriate credit limit is specified in credit
control area, so you can determine credit limits via Accounts Receivable.

The link between credit control area and company code in SAP system is
established through the assignment of credit control area to company code.

Procedure

You can assign credit control area to company code in SAP by using
navigation method or transaction code.

 Navigation path: – SPRO – IMG – Enterprise Structure – Assignment

– Financial Accounting – Assign company code to credit control area

 Transaction code: – OB38

 Database Table: – T001

Step 1) Enter T-code “OB38” in the SAP command field and enter.
Step 2) On change view “Assign company code –>Credit control area“:
overview, click on position button and update your company code in the
given filed and press enter.

Step 3) Now your company code “TK01” display at the top of window
screen. Now update the credit control area key against your company code.

Step 4) Click on save button and save the configured details.

Successfully we have assigned credit control area to company code in SAP.

Maintain Financial Management Area in SAP | FM Area SAP

How to create Financial Management area in SAP

In this tutorial you will learn how to maintain financial management area in
SAP Fico step by step. We are going to implement the following FM areas in
SAP

FM FM area
FM area text
Area Currency

TKART FM Area -
FM01 INR
In

TKART FM Area -
FM02 SGD
SGD

TKART FM Area -
FM03 USD
US

Important configurations to refer

Define company code in SAP

Define business areas in SAP

Define functional area in SAP

What is FM areas in SAP?

Financial management area in SAP is an organisational unit that organises

the company from aspect of cash management and funds management.

You can assign one or more company codes to a FM area in SAP. The financial
management area is taken from the company when assign company code to
an FM area in SAP.

Implementation process
You can maintain FM area in SAP by using navigation method or transaction
code.

 Navigation: – SPRO – IMG – Enterprise Structure – Definition – Financial

Accounting – Maintain FM Area

 Transaction Code: – OF01

 Database table: –FM01, FM01T.

Step 1) Enter transaction code “OF01” in the SAP command field and enter
to continue.

Step 2) On change view “Create FM Areas” Overview screen, click on entries

button to create new financial management area in SAP as per the
organizational requirements.

Step 3) On new entries:Overview of added entries screen, update the

following details.

 FM Area: – Give the four alphanumeric key that identifies the Financial
Management Area in SAP.

 FM Area Text: – Update the descriptive text of Fm area.

 FM area currency: – Update the currency key under which currency

financial management areas are to be maintained.
After updating all the details, click on save button and save the configured
details.

Step 4) Now you are prompted for customise request number to save the
FM area in SAP, choose request number and save the details.

Successfully we have maintained Financial management area in SAP.

Assign Company Code to Financial Management Area in SAP

How to assign company code to financial management area in SAP

In this SAP tutorials, you will learn how to assign company code to financial
management area in SAP. After configuration of FM area in SAP, you need to
assign company code to FM area. The link between company
code and financial management area is established through the assignment.

Configuration steps

You can assign company code to FM area by using the following navigation
path method.
Transaction code: – SPRO

Navigation: – SPRO – IMG – Enterprise Structure – Assignment – Financial

Accounting – Assign company code to financial management area.

Step 1) Enter Transaction code “SPRO” in the sap command field and enter
to continue.

Step 2) On customizing execute project, select “SAP Reference IMG“

Step 3) On display IMG screen, follow the path and click on “Assign company
code to financial management area”

Step 4) On change view “Assigning company codes to FM areas“: overview

screen, click on position button and enter you company code in the entry
field and press enter. Now your company code display in the top of screen.
Step 5) Now assign FM area by updating the Financial management area
key in the given field FM area.

Step 6) After updating the details, click on save button and save the
configured details.
Successfully we have assigned company code to financial management area
in SAP FICO.

How to Create Segment in SAP FICO

How to Define Segment in SAP FICO?

In this SAP tutorials, you will lean how to implement segment in SAP FICO
module step by step with scenarios.

Important configurations to refer

 Define company code in SAP

 Define business area in SAP

 Define functional area in SAP

 Define financial management area in SAP

What is Segment?

Segment is a division of an organization for which you can generate financial

statements for the purpose of external reporting.

 US GAAP and IAS set out different requirements regarding to segment

reporting.

 US GAAP requires the complete balance sheet at segment level of

reporting.

 IAS requires for segment reporting primary and secondary

segmentation. It is divided into two types of segments.

The types of segments are:

Business segment: – A business segment is a sub activity of an

organization that relates to the manufacture of a product or provision of
service and that has risks and revenues that differ from those in other
business segments.

Geographical segment: – A geographical segments is a sub activity of an

organization that relates to the manufacture of a product or provision of
service within a specific field of business.
  Path: – SPRO – SAP IMG – Enterprise Structure – Definition – Financial
Accounting – Define segment.

 Transaction code: S_AL0_19000003

 Database Table: – FAGL_SEGM, FAGL_SEGMT.

Segme
Description
nt

TK Corporation
TCORP
Segment

TCMNT TK Cement Segment

TSTEL TK Steel Segment

TTEXT TK Textiles Segment

Step 1) Enter SAP transaction code “S_AL0_19000003” in the sap command

field and enter to continue.

Step 2) On change view “segment for segments reporting”: overview

screen, click on “new entries” button to create new segments in SAP as per
company requirements.

Step 3) On new entries segment screen, update the following details.

 Segment: – Update key that identifies the segment in SAP

 Description: – Update the descriptive text of segment.

After updating all the details, click on save button to save the configured
segments in SAP.

Now choose request number and save the details.

Successfully we have created segment in SAP.

What is Chart of Accounts in SAP | How to Create COA in SAP

What is Chart of Accounts in SAP?

The chart of accounts in SAP (COA) is a group of general ledger (G/L)

accounts that records the organizational transactions in a structured way.
Each general ledger account consists account number, name and control
information.

Types of Chart of accounts

1. Operative chart of accounts

 2. Country specific chart of accounts

3. Group chart of accounts

Company codes can follow chart of accounts in two methods.

 All the company codes can use same set of accounts, that means
account coding is same for all company codes. For e.g. Salary account
number. we can easily compare and consolidate.

 If each company code following different set of accounts, than we can

not directly company and consolidate. By using group chart of
accounts, we can compare and consolidate the accounts.

How to create COA in SAP

In this configuration we define

1. Chart of accounts (COA) code

2. Description of chart of accounts

3. Maintenance Language

4. Length of account number.

You can create chart of accounts in SAP FICO by using one of the following
method.

 Transaction code: – OB13

 Navigation: – SPRO –> SAP Implementation Guide –> Financial

Accounting –> General Ledger Accounting –> G/L Accounts –> Master
Data –> Preparations –> Edit chart of accounts list

Step 1) Enter T Code “OB13” in the SAP command field and enter.

Step 2) On change view “List of all chart of accounts”: Overview screen,

click on new entries button to create new COA code as per company
requirements.
Step 3) On new entries COA screen, update the following details.

 Chart of Accts: – Enter the 4 digits alphanumeric key that identifies

the chart of accounts key in SAP (TKCA)

 Description: – Update the descriptive text of chart of accounts (Chart

of Accounts for TK Software Group)

 Maint.Language: – Choose language key from the list (English).

 Length of G/L account number: – The company requirements is to

maintain their accounts in 6 digits length. So here we need to update
6.

 Group chart of accounts: – If company following different set of

accounts, than we need to update the group COA for consolidation.
Step 4) Now click on save button and press enter to save in your
customizing request number.

Successfully we have created chart of accounts in SAP.

Assign Company code to Chart of Accounts in SAP

How to Assign Company code to Chart of Accounts in SAP FICO

In this SAP tutorials, you will learn how to assign company code to chart of
accounts in SAP FICO step by step. In our previous SAP training we have
learned what is chart of accounts and how to create COA in SAP. After
creation of chart of accounts, it is mandatory to assign company code. The
link between company code and chart of accounts is established through the
assignment of company code to chart of accounts in SAP.

Configuration steps

Coc Company Chrt/

City
d Name Accts

TK0 TK Software Limi Bangalo

TKCA
1 ted re

You can assign company code to chart of accounts in SAP by using one of the
following method.

 Transaction code: – OB62

 Menu Path: – SPRO –> IMG –> Financial Accounting –> G/L Accounting
–> GL Accounts –> Master Data –> Preparations –> Assign company
code to chart of accounts.

Step 1) Enter T- Code “OB62” in the SAP command field and enter.
Step 2) On change view “Assign company code –> chart of accounts”
overivew screen, select position option and now enter company code in the
given field. Now your company code displays on the top of screen.

Step 3) Now assign Company code “TK01” to chart of accounts “TKCA” by

updating your chart of accounts key in the Chrt/Accts field

Step 4) Click on save button to save the configured assignment details.

Successfully we have assigned company code to chart of accounts in SAP.

What is Fiscal Year Variant in SAP | How to Create Fiscal Year
Variant

What is Fiscal Year Variant in SAP

In SAP, Fiscal year variant (FYV) is a variant that controls parameters for a
financial year, such as managing financial accounting year and posting
period variants to open and close posting periods. Fiscal year is also known
as accounting year, for example accounting period April 2017 to March 2018
we call as year 2017-18. In SAP we call as Fiscal year 2017.

–> Financial accounting period is also called as “fiscal year” which consists of
12 periods (1 month = 1 period).

–> Each period in a fiscal year is called as posting period

–> When you post the transactions in SAP R/3 system, than the transactions
are assigned and updated to a particular posting period.

How the companies maintain fiscal year variant

 Indian Companies follow 12 posting periods (April – March) with 4

Special Periods – V3

 US companies follow 12 posting periods (Jan – Dec) with 4 Special

periods – K4

 Some other companies follow posting periods from July – June or

October to September with 4 Special periods.

How to create fiscal year variant in SAP FICO

Navigation: – SPRO — IMG — Financial Accounting — Financial Accounting

Global Settings — Fiscal Year — Maintain Fiscal Year Variant. Transaction
Code: – OB29

Step 1) Enter T Code “OB29” in the SAP command field and enter.

Step 2) Select position button and update V3 fiscal year variant. Press enter
to continue.
Step 3) Select V3 fiscal variant key and double click on periods folder.
Step 4) Now check calendar month, calendar day, period and year shift. You
can use this FYV in SAP or you can create new variant as per your
requirements.
How to create new fiscal year variant in SAP

Step 1) Go back to main screen, on change view “Fiscal year variants”:

overview screen click on new entries button to create new fiscal year variant
key as per organizational requirements.

Step 2) On new entries screen, update the following details.

 FV: – Enter the 2 digits alphanumeric key that identifies the fiscal year
variant in SAP.

 Description: – Update the descriptive text of FYV – April – March, 4 Spl

periods.
  Number of posting periods:- Update 12 as our fiscal contains 12 normal
posting periods.

 Number of special periods: – Update 4 as our fiscal year consists 4

special posting periods.

Click on save button to save the configured details.

Now select your request number, press enter to save in your request.

Step 3) Select fiscal variant key T3 and double click on periods folder.

Step 4) On change view periods overview screen, click on new entries

button for maintaining periods details (Calendar month, calendar date,
periods, year shift).
Step 5) Now update the following details.

Mont Da Peri Year

h y od Shift

1 31 10 -1

2 28 11 -1

3 31 12 -1

4 30 1 0

5 31 2 0

6 30 3 0

7 31 4 0

8 31 5 0

9 30 6 0

10 31 7 0

11 30 8 0
 12 31 9 0

Note: For 4th month i.e. April we have updated period as 1, for 5th month as
2, so that SAP system take fiscal year as April – March.

Click on save button and save the configured fiscal year details.

Why to deselect year dependent and calendar check box?

 If you select year dependent check box than the SAP system will ask
for which calendar year the conversion is applicable. If you specify
2015, than conversion is applicable for only that particular year and we
need to define conversion for every ever. By deselecting this year-
dependent check box the conversion is applicable for all years.

 If you select calendar check box, than the SAP system takes January as
period 1, February as period 2 and so on. Here our requirements is
 April should be period 1, May should be period 2 and so on. So we need
to deselect the calendar check box.

Successfully we have created new fiscal year variant in SAP FICO.

Define Account Group in SAP | What is Account Group

What is Account Group in SAP

An account group is a segregating or grouping the similar accounts in to

single group. Each account group in SAP is assigned to a chart of accounts,
so you can only use account group if the controlling areas use the
same chart of accounts. The account groups in SAP specifies:

 The account number rage interval from which the account number is
selected when you are creating general ledger master record.

Why Account Group

If you want to check current asset balances or prepare P&L accounts,

Balance sheets, you need to verify each and every account and then you
need to add and assign to their respective accounts. This process may take
lot of time. So to overcome this issues SAP has has provided account groups.

With in account group you can prepare accounts with in number range. For
example you can prepare cash accounts with any account number for current
assets number range 200000 -200099.

In Real time business scenario, we suggest

 All Liabilities accounts to start with 1 series.

 All Asset accounts to start with 2 series.

 All income accounts to start with 3 series.

 All Expenditure accounts to start with 4 series.

Why we need to follow accounts within series – When the user posting to
salaries account, which is an expenditure account. At the time of posting
when he give *4, only expenditure accounts appears in the list.

In this configuration we are going to define the following account groups.

Chrt/ Acct From To

Name
Accts Group Acct account
TKCA SCPL Share Capital 100000 100099

TKCA RSPL Reserves & Surplus 100100 100199

Accumulated
TKCA ACBL 100200 100299
Depreciation

TKCA SCLN Secured Loans 100300 100399

TKCA UNSL Unsecured Loans 100400 100499

Current Liabilities &

TKCA CLPR 100500 100599
Prov

TKCA FAST Fixed Assets 200000 200099

Current Assets, Loans

TKCA CAST 200100 200199
& Adv

TKCA SALE Sales 300000 300099

TKCA OTHR Other Income 300100 300199

Increase / Decrease
TKCA INCR 300200 300299
in Stock

Raw Material
TKCA RMCN 400000 400099
Consumption

TKCA PRSN Personnel Cost 400100 400199

TKCA MFRG Manufacturing cost 400200 400299

TKCA ADMN Administration cost 400300 400399

TKCA INTR Interest 400400 400499

 TKCA DEPR Depreciation 400500 400599

How to create Account Group in SAP

You can define account groups in SAP by using one of the following
navigation method

 Transaction code: – OBD4

 Menu Path: – SPRO – Financial Accounting – General Ledger Accounting

— G/L Accounts — Master Data — Preparations — Define Account
Group.

Step 1) Enter T Code “OBD4” in the SAP command field and enter.

Step 2) On change view “G/L Account Groups” overview screen, click on new
entries to maintain the accounts.

Step 3) On new entries account group screen, update the following details.

 Chrt/Accts: – Give the chart of accounts key for which you are creating
account group in SAP.

 Acct Group: – Enter the account group key, you are allowed up to 4
digits.

 Name: – Update the name of the account group.

 From Account: – Update starting number of account group.

 To Account: – Update the last number of account group.

Step 4) After updating the details, click on save button.

Now select your customizing request number and press enter to save the
configured details in your request.
Successfully we have defined account group in SAP.

How to create Retained Earnings Account in SAP

In this SAP tutorials, you will learn what is retained earnings accounts and
how to create retained earnings account in SAP FICO step by step with real
time scenarios.

What is Retained Earnings Account in SAP

In the year end, retained earnings account enables to transfer all the profit &
loss account balances to surplus in profit and loss account. Same way all the
balance sheet account balances are carry forwarded to next fiscal year as
opening balance.

The implementation of retained earnings account in SAP is mandatory. If the

retained earnings account is not defined, in the year end you can not
transfer the P&L account balances to next financial year.

Scenario

Up to now we have not created any account, however we can assign on

account for retained earnings account. It is recommended to specify account
from respective account group i.e. reserve surplus account group.

P&L Statement Accou

account type nt

10010
X
0

The appropriate retained earnings encompasses

 Yearly net income carried forward

  Distribution of dividends

 Transfers to appropriations and deductions from appropriations

 Transfer to minority interest and deductions from minority interest.

How to create retained earnings account in SAP

You can define retained earnings account by using one of the following
navigation method.

 Transaction code: – OB53

 Menu Path: – SPRO > SAP IMG > Financial Accounting > General ledger
accounting >G/L Accounts > Master data >Preparations > Define
retained earnings account.

Step 1) Enter SAP T-Code “OB53” in the command field and enter.

Step 2) Now a pop of window display for entering your chart of accounts.
Enter chart of accounts key “TKCA” and press enter to continue.
Step 3) On configuration accounting maintain : Automatic Posts – Accounts
screen, update the following details.

 P&L statement acct type: – Update the P&L statement account type as
“X”

 Account: – Give the account number in the reserve surplus account

group i.e. “100100”.

Step 4) Click on save button, now you get a message as “Account 100100
not created in chart of accounts TKCA”

Ignore the warning message, press enter to continue. Now you are prompted
for customizing request number, select your request and press enter to save
in your request.

Successfully we have defined retained earnings account in SAP.

Define Posting Period Variant in SAP | Variants for Open Posting

Periods
In this SAP tutorials you will learn how to define posting period variant that
determines which periods are to be open and close for postings in SAP.. In
our previous SAP tutorials we have created fiscal year variant T3 and
assigned to our company code TK01.

What is Posting Period Variant?

Posting period variant (PPV) is an variant that controls to open and close
the posting periods for entries.

Scenario

During fiscal year 2016, Company TK01 has declared the profitability to its
managements and public up to first quarter i.e 3oth June, 2016. After
declaration of profitability, the profit figures should not be changed.

If we open open periods April 2016 to March 2017, if users posts any
transactions with April date then the profitability figures declared will be
changes. So the SAP consultant close the posting periods from 1st April,
2016 to 30th June, 2016 and open posting periods from 1st July, 2016 to 31st
March, 2017.

 To open posting periods from July 2016 to March 2017, we represent in

SAP as 4, 2016 – 12, 2016.

 So the users can post entries from July 16 to March 17, this is called as
open and close posting periods.

 Posting posting period variant enables to close and open posting

periods for all company codes at same time or individually by company
code in SAP.

How to define variants for open posting periods in SAP

You can define posting period variant in SAP by using one of the following
navigation method.

 Transaction code: – OBBO

 Menu Path: – SPRO > IMG > Financial Accounting > Financial
Accounting Global Settings > Document > Posting periods > Define
variants for open posting periods.

Step 1) Enter transaction code “OBBO” in the SAP command field and enter.
Step 2) On change view “posting periods: define variants”: overview screen,
click on new entries button to create variants for open posting periods in SAP.

Step 3) On new entries screen, update the following details.

 Variant: – Enter the 4 digits key that identifies the posting period
variant in SAP.

 Name: – Update the descriptive text of variant.

Step 4) After updating the details, click on save button and save the
configured variant details.

Successfully we have defined posting period variant in SAP FICO.

Field Status Groups in SAP | Define Field Status Variants in SAP

In this SAP tutorials, you will learn what is field status group and how to
define field status variants in SAP.

What is Field Status Group in SAP

During document entry, field status group controls which fields are
required for entry and which fields are set to optional and suppress. The field
status groups are available under field status variant and it will be assigned
to company codes in SAP.

Scenario

At the time of posting on the SAP screen, we get 70 fields approximately like
quantity, Text, Cost Center, profit center, value, date, etc.

For any postings we will have a debit entries and credit entries, so we will
have 75 debit fields and 75 credit fields. It is not easy to update all the 150
fields and post a document. In order to overcome this issue, SAP has
provided the option to make the fields as required, optional and suppress.

Example : – Quantity

Suppress: – If you choose quantity as suppress, at the time of posting this

quantity field will not visible on the screen.

Required: – If you choose quantity as required, at the time of posting

quantity field will appear on the screen and you have to give value in the
quantity field. Required means mandatory, so without quantity value you can
not go to next screen.

Optional: – If you selected quantity as optional, at the time of posting the

quantity field appears on the screen and it is your choice to update value or
not. Without giving value you can go to next screen.

The field selection is not common for all accounts, it varies from account to
account. For example for sales account quantity is required and for salaries
account quantity is not required.

Important Rules of Field Status Variant

 We need to assign field status group at the time of general ledger

master record creation.

 In field status group, we need to specify which field is required,

optional and suppress.

 At the time of postings, the users gives G/L account number. The fields
appears on the screen based on field status groups assigned to G/L.

How to define Field Status Variants

In system, SAP has already provided pre configured field status groups. As
per organizational requirements, we can copy and change the name of
variant.
  Transaction code: – OBC4

 Navigation: – SPRO –> Reference IMG –> Financial Accounting (New) –

> Financial Accounting Global Settings (New) –> Ledgers –> Fields –>
Define field status variants.

Step 1) Enter transaction code “OBC4” in the SAP command field and enter
to continue.

Step 2) On change view “field status variants” overview screen, select the
FSTV 0001 and than select the copy as button.

Step 3) Now change the variant name to TKFV and name to Field status for
TKFV. Press enter to continue

Step 4) Now the system asks you to copy all or only copy entry, select copy
all option.
Step 5) We get a message number of dependent entries copied: 41, press
enter to continue.

Step 6) Click on save button and than select the request number, save the
configured field status variants details.

Successfully we have defined field status variants in SAP.

How to edit field status groups

Go back to main screen, select field status variant and double click on “Field
status groups”.
Double click on field status group “G001” i.e. General (with text allocation).

Double click on general data.

Now select required, optional and suppress field as per requirements.
Click on save button and save the configured details. Similarly edit the
remaining groups as per requirements.

Assign Field Status Variant to Company Code in SAP

How to Assign Field Status Variant to Company Code in SAP

In this SAP tutorials, you will lean how to assign field status variant to
company Code in SAP fico. In our previous training we have learned how
to define field status variants and field status groups in SAP. The link
between company code and field status variant is established through the
assignment.

Also Read:

 How to define chart of accounts in SAP

 What is fiscal year

 Define retained earnings account in SAP

 Define posting period variant

 Open and close posting periods variant

Configuration steps
You can assign field status variants to company code by using the following
methods.

 Transaction code: – OBC5

 Menu Path: – SPRO –> IMG –> Financial Accounting (New) –> Financial
Accounting Global Settings (New) –> Ledgers –> Fields –> Assign
company code to field status variants.

Step 1) Enter SAP T code “OBC5” in the SAP command field and press enter
to continue.

Step 2) On change view “Assign company codes –> Field status variant”
overview screen, click on position button and enter your company code in
the given field. So your company code display on top of the screen and it will
be easy to assign your company code.
Step 3) For company code “TK01” assign field status variant “TKFV”.

Step 4) Click on save button and save the configured assignment details.

Successfully we have assigned company code to field status variant in SAP.

Define Open and Close Posting Periods Variant in SAP

In this SAP FICO tutorials, you will learn how to define open and close posting
periods variant in SAP.

What is Open and close posting periods Variant

In SAP, Open and close posting periods variant enables to open the
current posting periods and other posting periods remains in closed. It
controls what are the posting periods to open and close for
entries. Through posting period variant, you can determine which company
codes are open for posting period.

Scenario

 Current year: – April 2016 – March 2016 – Fiscal year 2016

 Companies Profitability released up to June 2016.

 We need to open posting periods in SAP from July 16 – April 17.

Fr Fr Fr
To To To
o o Y Y o Y Y A
V Ac P P
m m e e m e e u
ar A co er er
A p a a p a a G
. un io io
c er r r er r r r
t d d
ct .1 .2

T 2 2 2 2
K 0 0 1 0 0
+ 4 12 16
P 1 1 3 1 1
V 6 6 6 6

How to define open and close posting periods in SAP

This is one of the important job in real time and only authorised persons are
allowed to control open and close posting periods in SAP. This is a manager
level job and only authorised consultant allowed to perform open and close
periods.

You can define variants for open and close posting period by using one of the
following navigation method.

 Transaction Code: – OB52

 Menu Path: –SPRO –> IMG –> Financial Accounting (New) –> Financial
Accounting Global Settings (New) –> Ledgers -> Fiscal year and
posting periods –> Posting Periods –> open and close posting periods.

Step 1) Enter SAP Transaction Code “OB52” in the sap command field and
enter.
Step 2) On change view “Posting periods: specify time intervals” overview
screen, click on new entries to define new open and close posting periods
variant as per company requirements.

Step 3) On new entries overview screen, update the following details.

Variant: – Enter the posting period variant key “TKPV”

A: – A stands for account type, you need to choose accounting type from the
list.

 + = Valid for all Account types

 A = Assets

 D = Customers

 K = Vendors

 M = Materials

 S = G/L Accounts

From Account: – Keep blank

To Account: – For + account type, keep field as blank and other account
types you need to update account.

From Periods 1: – Mandatory to update the period 1, you need enter

posting period to open. For example if we need to open posting period from
July 2016 – March 2017, we need to update as 4, 2016 – 12, 2016 in SAP

Year: – Enter currency year of fiscal year- 2016

To Period: – This is optional field. To open in SAP from July 2016 to April,
2017 we can represent as 2016.
Year: -This field is for special period, update the year.

From Periods 2: – First special period – 13

Year: – Enter year for special period

To Period: – Last special period – 16

AuGr: – In this field, you can assign authorized person id to handle this job.
When June 2016 profitability is released, we have to open posting periods
from July 16 to March 17. Similarly when July 2016 profitability is released we
need to open posting periods from Aug 16 to Mar 17. So every month you
need to perform this job task. To avoid misuse, sap has given authorised
group. So authorised person can open and close posting periods.

After updating all the details, click on save button and save the configured
details.

Note: – If you want to open posting periods from August 2016 to April 2017,
you can edit from period 1 to 5. So posting periods from April 16 to July 16
are closed and posting periods from Aug 16 to April 17 are opened.

Successfully we have defined open and close posting periods variant in SAP.

Define Tolerance Groups for G/L Accounts in SAP

In this SAP tutorials, you will learn how to define tolerance groups for G/L
accounts in SAP. In our previous training tutorial you have learned how to
define field status variants and field status groups in SAP.

What is Tolerance Groups

In real time business scenario, tolerance groups allows the SAP system to
process and post the transactions beyond the tolerance groups limits.
Tolerances are referred as payment differences, it can be a amount
tolerance, percentage tolerance, and debit & credit tolerance.

Also Read: –

How to define tolerance groups for employees.

How to create retained earnings account in SAP

How to define open and close posting periods in SAP

Implementation steps

You can maintain tolerance groups for G/L accounts by using one of the
following navigation method.

 Transaction code: – OBA0

 Menu Path: – SPRO –> IMG –> Financial Accounting –> G/L Accounting
(New) –> Business Transactions –> Open Item Clearing –> Clearing
differences –> Define tolerance groups for G/L accounts.

Step 1) Enter T-Code “OBA0” in the SAP command field and enter.

Step 2) On change view “Tolerance for Groups of G/L accounts in Local

currency” screen click on new entries button to define the tolerance groups
as per company requirements.

Step 3) On new entries screen, update the following details.

 Company Code: – Enter the company code “TK01”.

 Tolerance group: – Keep it as blank.

 Description: – Update the descriptive text of tolerance group for G/L

Accounts (Tolerance group for TK01).

 Debit Posting: – Give 0 for debit posting and percentage.

 Credit Posting: – Give 0 for credit posting and percentage.

Step 4) Click on save button and save the configured tolerance groups
details.

Successfully we have defined tolerance groups for G/L accounts in SAP.

Define Tolerance Groups for Employees in SAP

In this SAP Fico tutorials you will learn how to define tolerance groups for
employees in SAP. In our previous SAP training tutorial we have learned how
to define tolerance groups for G/L accounts in SAP.

Define Tolerance Groups for Employees

Tolerance groups for employees in SAP determines the upper limits for
postings as per

 Amount per document

 Amount per open item account

 Cash discount

 Payment differences.
Scenario: – If we have 10,000 users and we have create account for every
user which takes lot of time. In order to overcome this issue SAP has
developed tolerance groups. We can define as many as tolerance groups for
employees as per organizational requirements and assign with tolerance
limits. The SAP system doesn’t allow the postings beyond their limits.

For example

Group Group
Group C
-A B

1,00,0 10,00,0 1,00,00,0

Amt per document
00 00 00

Amt per open item 1,00,0 10,00,0 1,00,00,0

account 00 00 00

Cash discount 0 5% 10%

Payment difference 0 0 0

SAP Implementation steps

 Transaction code: – OBA4

 Menu Path: – SPRO >> IMG >> Financial Accounting (New) >>
Financial Accounting Global Settings (New) >> Document >>
Tolerance groups >> Define tolerance groups for employees.

Step 1) Enter T-Code “OBA4” in the SAP command field and enter to
continue.

Step 2) On change view “FI Tolerance Groups For Users” screen, click on
new entries button to create tolerance groups for employees.
Step 3) On new entries screen, update the following details.

 Group: – For practice purpose, let use same tolerance group for all
company codes, so it is recommended to use blank tolerance group.

 Company code: – Update the company code “TK01”

 Amount per document: – Enter maximum amount allowed per

document

 Amount per open item account: – Enter maximum amount per line
items.

 Cash discount per line item: – Update the maximum cash discount
allowed

 Permitted payment differences: – Keep this field as blank

After updating all the required details, click on save button and save the
configured tolerance groups details.

Successfully we have maintained tolerance groups for employees in SAP.

Define Customer Account Groups in SAP

How to Create Customer Account Groups in SAP

In this SAP tutorials, We are going to configure the following customer

account groups in SAP.

Grou
Name
p

Domestic
TK01
Customers
 Tk02 Export Customers

One-Time
TK03
Customers

 Transaction Code: – OBD2

 Menu path: – SPRO > Financial Accounting (New) -> Accounts

Receivable and Accounts Payable –> Customer Accounts —> Master
Data —-> Preparations for Creating Customer Master Data.

Step 1) Enter T-Code “OBD2” in the SAP command and enter from keyboard

Step 2) on change view “customer account groups” overview screen, click

on new entries button to define new customer account groups in SAP as per
the company requirements.
Step 3) On new entries customer account groups screen, update the
following details.

 Account group: – Update the key that identifies the customers account
group in SAP. You are allowed to enter up to 4 alpha numeric digits.

 Description: – Update the description of account group.

Click on save button, choose customize request and save the configured
data.

Step 4) Now double click on “General Data” option. General data is all
related to common information of the customers.
Now double click on the sub groups and set the field status of the fields as
the optional, suppressed, required and display.

Note: – Based on the fields selection, you are prompted the fields when you
are creating the customer master record.
After maintaining the field status fields for customer accounts general data,
return back to main screen by pressing function F3 key or back button.

Step 5) Now double click on company code data and double click on sub
groups of company code for maintaining the field status of the fields of
company code as optional, suppress, required and display.

 Make the Reconciliation account as required entry.

 Choose other field as suppress or required entry or optional entry or

display as per the company requirement.
Click on save button to save the data.

Step 6) Now double click on sales data for maintaining the field status group
related to SAP SD data. Double click on sub groups of sales data and make
fields as optional, required, display as per the requirements.
Click on save button and save the configured customer account groups
details.

Successfully we have defined customer account groups in SAP.

Create Number Ranges for Customer Account Groups in SAP

How to create number ranges for customer account groups in SAP

The following SAP tutorials guides you an overview of how to create number
ranges for customer account groups in SAP using transaction code XDN1 or
menu path. In our previous training tutorials we have learned how to create
customer account groups in SAP.
  Transaction code: – XDN1

 Menu Path: – SPRO > Financial Accounting (New) -> Accounts

Receivable and Accounts Payable –> Customer Accounts —> Master
Data —-> Preparations for creating customer master data —-> Create
number ranges for customer accounts.

Step 1) Enter Transaction code “XDN1” in the sap command field and press
enter to continue.

Step 2) On range maintenance customers screen, click on intervals button

for maintaining the number ranges for customer account groups in SAP.
Step 3) Click on “+” (insert interval) button.

Step 4) Now update the following details.

 No: – Update the two digits key that defines the customer accounts
number range intervals serial number.

 From No: – Enter the starting number range interval.

 To Number: – Enter the last number of customer accounts number

range.

 Ext: – This is an optional configuration, if you want to choose this

number range interval as external assignments select the check box.

Click on save button and save the configured details.

Successfully we have created number ranges for customer account groups in
SAP.

Assign Number Ranges to Customer Account Groups in SAP

How to Assign Number Ranges to Customer Account Groups

In this SAP tutorials, you will learn how to assign number ranges to customer
account groups step by step by using transaction code OBAR. In our previous
training tutorial, we have learned how to create customer account groups in
SAP.

Configuration steps

You can assign number range intervals to customer account groups by using
one of the following navigation method.

 Transaction code: – OBAR

 Menu Path: – SPRO > Financial Accounting (New) -> Accounts

Receivable and Accounts Payable –> Customer Accounts —> Master
Data —-> Preparations for creating customer master data —–> Assign
number ranges to customer account groups.

Assignment Procedure

Step 1) Enter T-Code “OBAR” in the SAP command field and press enter.

Step 2) On change view “Assign Customer Acct Groups –> Number Range
overview screen, click on position button and enter customer account group
key in the given field. So the customer account group key displays on top of
the screen.
Step 3) Now update the customer account group number range interval “TK”
in the field number range as shown below.

Click on save button to save the details.

Step 4) Now you are prompted for customizing request number, choose the
request and save the assigned details.
Successfully we have assigned number ranges to customer account groups
in SAP.

How to Define Risk Categories in SAP | What is Risk Category

How to Define Risk Categories in SAP

In this SAP tutorials, we will discuss what is risk category and how to define
risk categories in SAP step by step using transaction code OB01.

What is Risk Category?

With the help of risk category, you can divide the customers in to various
categories like low risk customers, medium risk customer, high risk
customers, etc. SAP system decides the action that should be taken when
the customer reaches the credit limit. When a customer assigned to high risk
category, than the customer get blocked for further purchasing until
receivable amounts are paid. Through risk categories, system automatically
determines the high risk categories and enables in blocking customers for
further purchases.

Configuration details

Risk
Name
Category

T01 Low Risk

Medium
T02
Risk

T03 High Risk

Navigation

You define risk categories in SAP by using one of the following navigation
method i.e. Transaction code & Menu Path.

SAP
R/3 Role Define risk categories
Menu

Transaction
OB01
Code

SPRO(Tcode) > Implementation guide for R/3 customizing

SAP IMG => Financial Accounting => Accounts Receivable &
Path Accounts Payable => Credit Management => Credit
control accounting => Define risk categories.

Step 1 : – Execute Tcode “SPRO”

Step 2 : – Choose SAP Reference IMG.

Step 3 : – Follow the IMG menu path and click on img activity “define risk
categories”.

Step 4 : – From change view credit management risk categories overview

screen, click new entries button to create risk categories as per the
requirements of client.

Step 5 : – On new entries of credit management risk categories screen,

update the following required details.

 Risk Category : – Enter the new three digits key that defines as risk
category in SAP

 CCAr : – Update the credit control area key in CCAr field. This
assignment enables link between risk category and credit control area
in SAP.

 Name : – In this field, update the description of risk category key.

Click on save button or press ctrl+s and save the configured risk categories
details in SAP.

Successfully we have configured risk categories in SAP.

Define Tolerance Group for Customers / Vendors in SAP

How to Define Tolerance group for customers / vendors in SAP

Tolerance group enables the users to process transaction with the payment
difference of gain or loss that defined as per tolerance group for customers
and vendors in SAP.

In this SAP tutorials, you will learn how to define tolerance group for
customers and vendors in SAP systems. In our previous training we have
learned how to assign number ranges to customer account groups in SAP.

Configuration steps

 Transaction code: – OBA3

 Menu Path: – SPRO > SAP Reference IMG > SAP Customizing
Implementation guide –> Financial Accounting (New) —> Accounts
Receivable & Accounts Payable —-> Business Transactions —–>
Outgoing Payments ——> Manual Outgoing Payments ——-> Define
Tolerances for customers and vendors.
Step 1) Enter T- code “OBA3” in the SAP commend field and enter.

Step 2) On change view Customers/Vendors tolerances overview screen,

click on “New Entries” button to define new tolerance groups for vendors and
customers as per the requirements.
Step 3) On new entries customer and vendor tolerances screen, update the
following details.

1. Company Code: – Update the company code for which you would like
to define tolerance groups.

2. Tolerance group: – It is not required to update the tolerance group key,

just update the description text of tolerance group.

3. Permitted payment difference: – Update the payment differences of

gain & loss with amount and percentage i.e 500 percentage and 1%
adjustment by 100.
This means the user can process the business transaction with the payment
difference of 500 with gain or loss of 1 percentage. The SAP system doesn’t
allow to process the transaction above the payment differences amount.

After maintaining all the required details of customer and vendor tolerances,
click on save button and save the implemented tolerance group details.

Successfully we have defined tolerance group for customers and vendors in

SAP.

How to Create Sundry Debtors in SAP

In this SAP training tutorials, you will learn how to create sundry debtors in
SAP (Reconciliation account for customers) step by step using transaction
code FS00. Accounts receivable is a sub ledger accounting and also called as
sundry debtors.

How to Create Sundry debtors in SAP

Step 1) Enter T-Code “FS00” in commend field and enter.

Step 2) On Edit G/L Account Centrally screen, update the following details.

 Enter the general ledger account in the field G/L account to create the
sundry debtors a/c in SAP.

 Enter the company code “TK01” under which company code that the
G/L account to be created.

 Now click create icon.

Step 3) Now you are required to update the following details.

1. Account Group: – Choose the account group that the G/L account
belongs to.

2. Choose statement type balance sheet.

3. Description: – Update the G/L account short text and long description
as Sundry Debtors.

4. After updating the details, click on control tab.

Step 4) On control tab, update the following details.

1. Account currency of G/L account.

2. Update the reconciliation account for account type as customers.

3. Choose the account management in company code as open item

management or line items display.

4. Update sort key as 031 (customer no).

Step 5) Now select create/bank/interest option and update the field status
group as G067 (Reconciliation Accounts).

Step 6) After maintaining all the required details for sundry debtors, click on
save button.

Successfully we have created sundry debtors in SAP.

What is Accounts Payable (AP) in SAP FICO

What is Accounts Payable in SAP ?

Accounts Payable (AP) is an important application of SAP FICO module
that helps to record and manage accounting data of all vendors. In SAP,
sundry creditors are called accounts payables and sundry debtors are called
accounts receivable.

SAP Accounts payable accounting is also called as sub-ledger

accounting, as the business transactions are carried out individually in the
vendor accounts. All the transactions that are processed in accounts payable
are recorded directly in the general ledger account. The real time updating
will be done through the settings made in general ledger master while
creation of account. The settings are done by choosing vendors for
reconciliation account for account type. Every postings that is done in
accounts payable generates a respective posting to a assigned general
ledger account and ensures that the sub ledgers are always reconciled with
the general ledger.

SAP FI accounts payable can be integrated with SAP FI – GL (General Ledger),

FI-AA (Asset Accounting), SAP MM (Material Management), etc. The deliveries
and invoices are managed according to the vendors.

Important configuration steps of accounts payable

S.n
SAP Accounts Payable Configuration steps
o

1 Define vendor account groups in SAP

 2 Create number ranges for vendor accounts

3 Assign number ranges to vendor accounts

4 Maintain terms of payment for vendors

5 Define accounts for exchange rate difference

6 Define field groups for vendor master records

6 Define accounts for bank charges

7 Define payment block reasons

8 Define tolerance for vendors in SAP

9 Define accounts for payment differences

10 Set up all company codes for payment transactions

Set up payment methods per country for payment

11
transactions

12 Define void reason codes

13 Define reconciliation accounts for vendors

14 Define interest calculation types

15 Define time dependent terms

16 Automatic Payment Program (APP)

Continue to read free SAP tutorial that guides you how to configure SAP R/3
system step by step with real time scenarios.

How to define vendor account groups with screen layout in SAP

How to create vendor account groups in SAP?

In this SAP FICO tutorial you will learn how to define vendor account groups
with screen layout in SAP using transaction code OBD3.

Purpose of Configuration

In this configuration step you determine the account groups for vendors.

Configuration values

Grou
Name
p

Domestic
T001
Vendors

T002 Import Vendors

One Time
T003
Vendors

IMG Menu Path

SAP
R/3 Role Define account groups with screen layout (Vendor)
Menu

Transaction
OBD3
code

SPRO > IMG >Financial Accounting > Accounts

Receivable & Accounts Payable > Vendor Accounts >
IMG path
Master Data > Define Account Groups with Screen
Layout (Vendors)

Configuration Steps

Step 1 : – Enter t-code “OBD3” in the SAP commend field and enter.
Step 2 : – On change view “vendor account groups” overview screen, click on
new entries button for creation of new vendor account group in SAP as per
requirements.

Step 3 : – On new entries: details of added entries screen, update the

following details.

 Account group : – Update the four digit key that identifies the vendor
account group in SAP.

 Description/Meaning : – Update the descriptive text of account

group.

 One-Time account : – Leave this option as blank, if you are creating

one time vendor account group than check this one time account
option.

 Field Status : – Double click on company code data for maintaining

the field status groups.
Step 4 : – On maintain field status group: overview screen, click on account
management option which is under select group field.

On maintain field status group : account management screen, choose the

reconciliation account as required entry.
Click on save button and save the configured details.

Why we need to choose reconciliation account as required entry?

It is mandatory to choose reconciliation account as required entry, because

when we are creating vendor accounts in SAP it ask to entry the
reconciliation account and the system wont allows you to save the data
without updating the reconciliation account.

How to create number ranges for vendor accounts in SAP

Create number ranges for vendor accounts in SAP

Purpose of configuration : –

In this SAP FICO tutorial, you create a number ranges for vendor accounts.
When you are creating vendor accounts using transaction code XK01, the
number is assigned to vendor accounts based on the number ranges that
you have configured. To do this, we need to define two digits alpha numeric
key.

 A number interval from which the account number for the vendor
accounts is to be selected.

 The type of number assignments (Internal/ External).

Navigation of Number Ranges for Vendor Accounts

Transaction
XKN1
Code

SPRO > IMG > Financial Accounting > Accounts

SAP IMG
Receivable & Accounts Payable > Vendor Accounts >
Menu
Master data > Create number ranges for vendor accounts

Description and configuration values

N To NR Ex
From No.
o Number Status t

00000050 00000059
T1
00 99

00000060 00000069
T2
00 99

00000070 00000079
T3
00 99

00000080 00000089
T4 X
00 99

Configuration steps
Step 1 : – Enter SAP T-code “XKN1” in the commend field and press enter to
continue.

Step 2 : – On range maintenance vendor screen, click on change intervals

button to create new number ranges for vendor accounts in SAP system.

Step 3 : – On maintain Intervals: Vendor overview screen, click on insert line

option (F6) for maintaining the new number ranges for vendor accounts.

Step 4 : – On maintain interval vendor screen, update the following details.

 No : – Enter 2 digits key that identifies the vendor account number

range interval in SAP.

 From No : – Update the starting number of intervals, for

e.g. 0000005000

 To Number : – Update the last number of intervals, for

e.g. 0000005999

 Ext : – Check this option only if the number range interval is applicable
for external assignment.
After maintaining all the required details, choose save button and save the
configured details.

How to delete created vendor number range interval

Select number range interval and click on delete line option or pressing
function key F7.

You are not allowed to delete the number ranges intervals of vendor if the
vendor accounts are already created under that interval. The system throws
an error as deletion only possible if status is initial.

Assign Number Ranges to Vendor Account Groups in SAP

In this SAP FICO Tutorial, you will learn how to assign number ranges to
vendor account groups in SAP. After configuration of vendor account groups
and number ranges for vendor accounts, you need to assign this number
ranges to vendor accounts.

Configuration Values

Grou Number
Name
p Range

T001 Domestic T1
 Vendor

T002 Import Vendor T2

One Time
T003 T3
Vendor

Purpose of configuration

You can assign one number ranges to one or more vendor account groups in
SAP as per organization requirements. Based on the number range
assignment, the unique number is assigned to a vendor account.

For e.g. T1 number range (5000 – 5999) is assigned to a domestic vendor

T001. When domestic vendor account is created, a unique number 5000 is
assigned. So you can create vendor accounts up to 5999 number range.

How to assign number ranges to vendor account groups in SAP

You can assign number ranges to vendor account groups in SAP using
transaction code OBAS or IMG menu path. Refer below procedure steps for
assignment configuration steps.

Navigation

Transactio
OBAS
n Code

SPRO > IMG (Implementation Guide for R/3 Customizing)

> Financial Accounting (New) > Accounts Receivable &
IMG Menu
Accounts Payable > Vendor Accounts > Master Data >
Assign Number Ranges to Vendor Account groups.

Step 1 : – Enter SAP transaction code “OBAS” in the SAP commend field and
enter.

Step 2 : – On change view “Assign vendor account groups – number ranges

overview screen, click on position button and enter vendor account group
key in the given field, so the vendor account group key displays on top of the
screen.

Now assign number range key T1 for T001 (domestic vendors) as shown
below image.

Click on save button and save the configured details.

Similarly assign T2 and T3 number ranges to other vendor account groups

T002 and T003.
Successfully we have assigned number ranges to vendor account groups in
SAP.

How to Maintain Terms of Payment in SAP (Payment Terms)

Terms of payment / Payment terms are used in SAP to establish the

conditions between business partner and organization to settle the payment
of invoices. The conditions define the invoice payment due date as per
baseline date and the cash discount percentage offered for early invoice
payment.

Navigation

You can maintain payment terms in SAP by using transaction code OBB8 or
IMG menu path.

SAP R/3
Maintain Payment Terms in SAP
Role Menu

Transaction
OBB8
Code

SPRO >IMG (Implementation Guide for R/3 Customizing)

IMG Menu > Financial Accounting (New) > Accounts Receivable
Path & Accounts Payable > Business Transactions > Master
Data > Maintain Terms of Payment

How to create terms of payment in SAP

In this SAP FICO tutorial, you will learn how to maintain payment terms in
SAP step by step using transaction code OBB8.

Configuration Values

Payment
Description
Term

TP06  10% discount payment with in

10 days

 5% discount payment with in 25

days
  Payment with in 45 days.

Step 1 : – Enter transaction code “OBB8” in the SAP commend field and
enter.

Step 2 : – On change view “terms of payment” overview screen, click on

new entries button to create new payment terms in SAP as per
organizational requirements.

Step 3 : – On new entries payment terms screen, update the following

details.

1. Payt Terms : – Update the four digits key that identifies as terms of
payment in SAP – TP06

2. Sales Text : – Update the description name of payment terms

as 10%-10days, 5%-25 days, 45 days due net.

3. Account Type : – Choose the account type that the payment term is
applicable for. If this payment term if for vendor accounts choose
vendor option or for customer accounts choose customer option.
Choose both account type to use this payment terms for both customer
and vendor accounts.

4. Default for baseline data : – Choose the baseline date based on the
requirements and the possible entries are No default, posting date,
document date and entry date.

5. Payment Terms : – Update the details of percentage, No.of days.

6. Explanation : – After you update the payment terms, the system

automatically generates details information terms of payment.
After maintaining all the required details, click on save button and save the
configured terms of payment details in SAP.

How to Define Accounts for Cash Discount Taken in SAP

How to define accounts for cash discount taken in SAP

In this SAP FICO tutorial you will learn how to define accounts for cash
discount taken in SAP step by step using transaction code OBXV.

Purpose of configuration

Through this SAP configuration you define the G/L account numbers for your
cash discount received accounts. The SAP system posts the cash discount
amount to this G/L account when you are clearing the open items. Discounts
are to be adjusted to purchases where a cash discounts are to shown under
other income.
Perquisite before assigning G/L accounts to cash discount

Create chart of accounts

Assign chart of accounts to company code

Create G/L accounts for cash discounts using transaction code FS00

G/L Account
Description
Account Group

Other Cash discount

300101
Income received

Configuration steps

SAP R/3
Define accounts for cash discount taken
Role Menu

Transaction
OBXV
Code

SPRO > SAP Reference IMG > Financial Accounting (New)

IMG Menu > Accounts Receivable and Accounts Payable > Business
Path transactions > Outgoing payments > Outgoing payment
global settings > Define accounts for cash discount taken

Step 1 : – Enter SAP T-code “OBXV” in the commend field and press enter to
continue.

A window opens for entering the chart of accounts key, update the chart of
account (COA) and press enter.
Step 2 : – On configuration accounting maintain: accounting posts -rules,
click on accounts key for assignment of G/L accounts for cash discounts.

Step 3: – Under Account assignment option, update the cash discount

received G/L in the field account as shown below image.
After assignment of general ledger cash discount received accounts, click on
save button and save the configured details.

Successfully we have defined accounts for cash discounts taken in SAP

Financial Accounting.

Create Sundry Creditor Account in SAP (Vendor Reconciliation

Account)

How to create sundry creditor account in SAP

Learn how to create sundry creditor account (Vendor reconciliation account)

in SAP FICO.

In SAP, Reconciliation ledger controls the ledger of sub ledger accounts.

When items are posted to an account in sub-ledger, the system
automatically posts to a corresponding G/L account which is called as
reconciliation account.

Navigation

Transaction
FS00
code

SPRO > IMG > Financial Accounting > G/L Accounting >
SAP Menu
GL Accounts > Master data > Preparations > G/L Account
Path
creation and processing > Edit GL Account.

Configuration steps
To create vendor reconciliation account in SAP, perform the following
configurations steps.

Step 1 : – Execute t-code “FS00” in command field from SAP easy access
screen.

Step 2 : – On Edit G/L account centrally screen, update

 G/L account number as 100501

 Company code as TK01 (TK Software limited).

After maintaining the required details, click on create button.

Step 3 : – Under G/L account type/ Description, update

  Update G/L Account group (Current liabilities and Provisions).

 Choose balance sheet account radio button.

 Description : – Update the short description of G/L account as sundry

creditors.

 G/L acct long text : – Update G/L account long text as sundry creditors
account.

After maintaining the sundry creditor type details, click on control data tab.

Step 4 : – Under control data screen, update the following details.

 Account currency : – Account currency field will be automatically

updated based on company code currency.

 Recon. account for acct type : – Update the reconciliation account for
account type as “Vendor”.

 Account management in company code : – Choose the options of line

item display, sort key as “012” (Vendor number).
Step 5 : – Click on Create/Bank/Interest tab and update the required details
of

 Control of document creation in company code

 Bank/financial details in company code

 Interest calculation information in company code.

After maintaining all the required details, choose save icon and save the
configured vendor reconciliation account in SAP.

Successfully we have created sundry creditor account in SAP.

SAP FICO – Create Vendor Master Record (Vendor Code) in SAP

How to create vendor master record in SAP

In this SAP FICO tutorial, you will learn how to create vendor master record in
SAP using transaction code XK01.

Vendor master record consists the following configuration screens.

1. Create vendor initial screen

2. Vendor address
 3. Vendor control

4. Vendor payment transactions

5. Vendor accounting information

6. Vendor correspondence accounting

7. Vendor Purchasing data

Navigation

You can create vendor master record in SAP by using transaction code or
menu path.

Transaction
XK01
code

SAP Menu > Accounting > Financial Accounting >

SAP Menu
Accounts Payable > Master records > Maintain centrally
Path
> XK01-Create.

Configuration steps

You can define vendor master record in SAP by performing the following
configuration steps.

Step 1 : – Execute t-code “XK01” in command field from SAP easy access
screen.

Step 2 : – On create vendor: initial screen, update the following details.

 Company code : – Here you need to enter company code, so that

vendor code is applicable for that company code only. After creation of
vendor master data, you can extend from one company code to
another company code as per requirements of an organization.
  Purchasing organization : – Update the purchasing organization key.

 Account group : – Update the vendor account group.

 Reference : – With the reference of existed vendor code, you can

maintain new vendor master record as per requirements.

After maintaining the required details, press enter to continue.

Step 3 : – Create Vendor: Address

On create vendor: address screen, Update the required address details of

vendor i.e.

 Title – Title of Vendor (Mr, Mrs, Company, etc)

 Name – Name of Vendor

 Street Address – Street/ house number, Postal code, City, Country,

Region, etc

 PO Box Address – PO Box #, Postal code.

 Communication – Language, Contact number, Fax, etc.

After maintaining address details of vendor, click on next screen button as
shown above image.

Step 4 : – Create Vendor: Control

On create vendor: Control, update the required vendor control details like
account control, Tax information, Reference data, etc.
After maintaining the required vendor control details, press next screen
option.

Step 5 : – Create Vendor: Payment transactions

On create vendor : payment transactions screen, update the required bank

account details of

 Country key

 Bank key

 Bank account number

  Account Holder name

Step 6 : – Create vendor : Accounting information Accounting

In this screen, update vendor reconciliation account (Sundry creditor

account).
Step 7 : – Create Vendor Payment transactions accounting

Click on next screen option and on create vendor payment transaction

accounting screen, update the required details like payment terms,
automatic payment transactions, invoice verification, etc.
Step 8 : – Create Vendor : Correspondence Accounting

On correspondence accounting screen, update the details of dunning data

details, Correspondence details, etc.
Step 9 : – Create Vendor : Purchasing data

In the next screen, purchasing data, update the required details of

Conditions, Sales data, control data, Invoice verification data, default data
material, Service data, etc.
After maintaining all the required details, choose save icon and save the
configured vendor master record in SAP. You will get a message as “Vendor
5006 has been created for company code TK01 purchasing organization
TKPO.

Successfully we have created new vendor code in SAP system.

How to Define Tax Procedure in SAP

In this SAP tutorials, you will learn how to define tax procedure in SAP
systems. In our previous training tutorial we have discussed about what is
sales tax and purchase tax in SAP.

How to Define tax procedure in SAP

You can maintain tax calculation procedures in SAP by following one of the
navigation method.

 Transaction code: – OBYZ

 Menu Path: – SPRO –> IMG –> Financial Accounting (New) –> Financial
Accounting Global Settings (New) –> Tax on sales/purchases –> Basic
settings –> Check calculation procedure.

Step 1) Enter transaction code “OBYZ” in the SAP command field and enter.

Step 2) A pop up window condition element screen displays with options,

you need to choose procedures so double click on it.
Step 3) On change view procedure screen, click on new entries button for
definition of new tax procedure in SAP.
Step 4) On new entries calculation procedures screen, update the following
details.

 Procedures: – Enter the four digits key that identifies the tax procedure
in SAP.

 Description: – Update the descriptive text of tax calculation procedure

– Sales tax India.

After maintaining the details, click on save button and save in your request
number.

Step 5) Now select TKCP procedures row and double click on control data
folder.
Step 6) Select new entries button.

Step 7) On new entries screen, update the following details.

 Step: – Enter the number (10, 20, 30…) which specifies the sequence
of the conditions within a procedure

 Condition type: – Update the condition type key that indicates the
each activity or tax.

 Description: – Description text will be automatically updated based

on condition type text.

 From, To: – This indicate which tax should be calculated on which

base amount.

 Account key: – Assign the account that respective to condition types.

Ste CTyp Descriptio Fr T

AccKey
p e n o o
 Base
10 BASB
Amount

MWV 1
20 Input Tax 10 VST – Input Tax
S 0

MWA 1 MWS – Output

30 Output Tax 10
S 0 Tax

After maintaining all the required details, click on save button and save the
configured details.

Successfully we have maintained tax calculation procedures in SAP.

Assign Country to Calculation Procedure in SAP

How to Assign Country to Calculation Procedure in SAP

In this SAP tutorials, you will learn how to assign country to calculation
procedure in SAP. In our previous tutorial we have learned how to define tax
procedures in SAP. The link between country and calculation procedure is
established thorough the assignment of country and tax calculation
procedure.

Important configuration to refer:

1. How to define condition types

2. Maintain tax codes for sales and purchases

Configuration Steps

You can assign country to calculation procedure by using one of the following
navigation method.

 Transaction code: – OBBG

  Path: – SPRO –> IMG –> Financial Accounting (New) –> Financial
Accounting Global Settings (New) –> Tax on Sales/Purchases –> Basic
settings –> Assign Country to Calculation Procedure.

Step 1) Enter T-code “OBBG” in the SAP command filed and enter.

Step 2) On change view “Assign country –> calculation procedure”:

overview screen, click on position button and enter the country key “IN” in
the given field and press enter.

Step 3) Now country IN displays on top of the screen. Now assign your
calculation procedure to IN.
Step 4) After assignment, click on save button and save in your request.

Successfully we have assigned country to calculation procedure in SAP.

Assign Tax Codes for Non Taxable Transactions

How to Assign tax codes for non taxable transactions in SAP

In previous SAP tutorials you have learned how to define tax procedures step
by step, the next configuration step is assign tax codes for non taxable
transactions in SAP.

Non tax codes are mandatory to maintain in SAP, whenever you are posting
the non taxable transactions to the tax relevant accounts, we need to specify
0% tax codes. Here we are going to configure A0 & V0 0% tax codes and
assign to company code TK01.

Before assigning tax codes for non taxable transactions, we need to define
0% input tax and 0% output tax.

1. A0 – 0% Output Tax

2. V0 – 0% Input Tax

Configuration steps for V0 – 0% Input Tax

 Transaction Code: – FTXP

 Path: – SPRO > SAP IMG > Financial Accounting (New) –> Financial
Accounting Global Settings (New) –> Tax on Sales/Purchases –>
Calculations –> Define Tax Codes for Sales and Purchases.

Step 1) Enter T-code “FTXP” in SAP command field.

Step 2) Enter country key “IN”, as we are tax codes for country India so we
have entered In. If you are maintaining tax code for United States, enter US
as country key.

Step 3) On maintain tax code: Initial screen, enter tax code that you like to
create. Update as V0 and press enter to continue.
Step 4) In next screen, update tax code description and tax type as V (Input
tax). Press enter to continue.
Step 5) Now update input tax – tax percentage rate as 0.
Click on save and save the configured tax code.

Similarly create A0-Output tax code

Step 1) Enter T-Code “FTXP”

Step 2) Choose Country key In.

Step 3) In next screen, enter A0 in the tax code field and enter.
Step 4) Update tax code description and tax type key as A, press enter to
continue.
Step 5) In next screen, you need to update tax percentage rate and update
it as 0.
Click on save button and save the configured tax code.

Procedure to Assign Tax Codes for Non Taxable Transactions

Step 1) Enter T-Code “OBCL” and enter.

Step 2) On change view allocate company code –> Non taxable transactions
overview screen, click on position button and enter your company code in
the given field.
Step 3) Now update 0% input tax code and 0% output tax code in the given
field as shown below.

Successfully we have assigned tax Codes for non taxable transactions in SAP.

Define Tax codes for Sales and Purchases in SAP

How to maintain tax codes for Sales and Purchases

In previous SAP tutorials you have learned how to assign tax code for non
taxable transactions, the next important configuration step is define tax
codes for sales and purchases. Here we are going to create new tax codes of

 V5 – 5% Input VAT Tax

  A5 – 5% Output VAT Tax

You can maintain tax codes by using the following navigation methods.

 Transaction code: – FTXP

 IMG path: – SPRO –>SAP IMG –> Financial Accounting (New) –>
Financial Accounting Global Settings (New) –> Tax on Sales/Purchases –
> Calculations –> Define Tax Codes for Sales and Purchases.

Step 1) Enter SAP tcode “FTXP” in command field and enter.

Step 2) Enter country key in the given field, as we are creating new tax
codes for country India, show we have updated IN key.

Step 3) Now you need to enter tax code key V5 which is you like to create.
Step 4) On maintain tax code initial screen, update

 Tax code description as 5% Input Tax.

 Tax type as V (Input Tax).

 Press enter to continue to next configuration screen.

Step 5) On Maintain Tax codes: tax rates screen, update the tax percentage
rate for input tax.

Note: – Here under percentage rate, only three tax types are displaying i.e.
Base amount, Input tax and Output tax, other tax types are not displaying to
update the tax percentage rates. This is because, we have defined tax
procedure with condition types of Base amount, Input and output tax. You
need to maintain condition types under tax procedure as per the
organization requirements. Further you are allowed to update other tax rate
like excise duty, etc in tax codes.

Click on save button and save the configured Tax code V5 in SAP.

In same procedure create A5 – 5% Output VAT Tax code.

Step 1) Go back to main initial screen, enter tax code A5 in the given field
as shown below image.
Step 2) Update tax code description as 5% Output VAT Tax and tax type as
“A” (Output tax).

Step 3) Now enter tax percentage rate for output tax and press enter to
continue.
After maintaining all the required details, click on save button and save the
configured tax code.

Successfully we have created tax code for sales and purchases in SAP.

How to Create Bank Key in SAP | What is Bank Key

How to Create Bank Key in SAP

In this SAP FICO tutorial you will learn how to create bank key in SAP step by
step using transaction code FI01.

What is Bank Key?

Bank key number is optional for country India and mandatory for US. In SAP,
bank key consists detailed address information of bank account with account
number.

Purpose of Configuration

In this activity, you define bank key that consists bank account address,
account number, IFSC code, branch name, etc.

Navigation Path

SAP R/3 Role

Create bank key
Menu

Transaction FI01
 Code

SAP Menu > Accounting > Financial

Path Accounting > Accounts Payable > Master Records >
Bank > FI01-Create

Step 1 : – Enter SAP Tcode “FI01” in the SAP command field and enter.

Step 2 : – On create bank initial screen, update the following details.

1. Bank Country : – Update the country key where the bank is located, for
e.g. If bank is located in United States enter country key as US, for
India update as IN.

2. Bank Key: – Update the new bank key that you like to create in SAP,
you are allowed to updated up to 15 alphanumeric characters.

After updating the required details, press enter to continue.

Step 2 : – On create bank detailed screen, update the following details.

Address: Update the detailed address of bank, here our bank is Axis bank
which is located at electronic city, Bangalore.

 Bank Name : – Enter the name of bank – Axis Bank.

 Region : – Update the region key from the list.

 Street : – Street address of bank where it is located.

 City : – City Name

  Bank Branch : – Name of bank branch.

Control data

 Swift/BIC : – Update Bank Swift Code

 Bank Number : – Update bank account number.

After you update all the required details, click on save button and save the
configured bank key in sap system.

Successfully we have created bank key TKAXIS01 in SAP.

How to Define House Bank in SAP | Account ID in SAP

Define House Bank in SAP

The bank which is used for payment transactions for the company is called
as house bank in SAP. Each house bank of a company code in SAP is
represented by a bank id. You can create bank master record separately and
use it as house bank as per requirements of projects.
Purpose of Configuration

In this activity you define house banks and account id for an organization as
per business requirements. In SAP, house bank consists detailed information
of bank account master record with bank data, communication details, edi
partner profiles, etc.

Navigation Path

You can create/ define house bank in SAP FICO by using the following SAP
menu path and transaction code FI12.

SAP R/3
Define House Banks
Role Menu

Transaction
FI12
code

SPRO > Implementation Guide for R/3 Customizing (IMG)

SAP Menu
> Financial Accounting (New) > Bank Accounting > Bank
Path
Accounts > Define House Banks

House Bank Configuration steps in SAP FICO

Step 1 : – Enter SAP transaction code “FI12” in the command field and press
enter to continue.

Step 2 : – On determine work area entry screen, update the company

code for which you are going to create house banks in SAP.
Step 3 : – On change view House banks overview screen, click on “New
Entries” button for creation of new house bank in SAP.

Step 3 : – On new entries house bank screen, update the following details.

 House Bank : – Enter the four digits key that identifies the house bank
in SAP FICO.

House Bank Data

 Bank Country : – Update Bank County key – IN

 Bank Key : – Update the bank key

Communication data

 Telephone 1 : – Update contact number

  Contact Person : – Responsible person name for contact.

After updating all the required details, click on save button and save the
configured details.

Create Bank Account ID in SAP

After successfully creation of house bank in SAP, now you need to configure
account ID. To do this perform the following settings.

Double click on Bank Accounts option which is under house banks.

On change view bank accounts overview screen, click on new entries button
for creation of bank account details.
On change view bank accounts details overview screen, update the following
details.

 Account ID : – Update the key that identifies the house bank account id
in SAP

 Description : – Update the descriptive text of account id.

 Bank Account Number : -Update the account number of bank

 Alternative acct.no : – Update alternative bank account number if

required.

 Currency : – Currency of bank account.

Successfully we have created house bank in SAP. Continue to read free SAP
FICO tutorials with real time scenarios.

Create Check Lots in SAP | Define number ranges for checks

How to Create Check Lots in SAP?

The creation of check lots in SAP is mandatory configuration for payments

through checks. In this tutorial you will learn how to create check lots / define
number ranges for checks in SAP systems using transaction code FCHI.

SAP Menu Path

SAP R/3
Maintaining check lots
Role Menu

Transaction
FCHI
code
 SPRO > IMG > Financial Accounting > Accounts
Receivable & Accounts Payable > Business transactions >
SAP Menu Outgoing payments > Automatic outgoing payment >
Payment media > check management > define number
ranges for checks.

Configuration steps

Step 1 : – Enter T-code “FCHI” in SAP command field and enter.

Step 2 : – On check lots screen, update the following details.

 Paying company code : – Update the paying company code key i.e.
TK01

 House Bank : – Update the house bank i.e. AXISB

 Account Id : – Update the house bank account id i.e. AXIS

 Click on change button to create the check lots as per requirements.

Step 3 : – On maintain check lots screen, click on create button for

maintaining number ranges for checks as per requirements of project.
Note : – The check lot numbers are to be updated based on the bank issues
checks.

A window open for creating the check lot number. Update the following
details.

 Lot number : – Give the lot number

 Check Number : – Starting number of Check

 To : – Update the last number of check.

 Non Sequential : – It is optional to choose the non sequential check

box, however to run the automatic payment program you need to
select the non sequential check box.
Press enter to continue.

Update the short information of check lot

Click on save button and save the configured check lots in SAP.

Automatic Payment Program in SAP – Customize Payment Program

In this SAP FICO tutorial you will learn how to configure automatic payment
program in SAP using tcode FBZP and how to run payment program for
clearing open items.

Automatic Payment Program Run in SAP FICO :

Automatic Payment Program (APP) Run in SAP FICO is one of the important
functionalities of SAP systems that used to issue checks automatically and
receive incoming payments.

In SAP, Automatic payment program (APP) involves the following

configuration steps

1. Setup all company codes for payment transactions

2. Setup all paying company codes for payment transactions

3. Setup payment methods per country for payment transactions

4. Setup payment methods per company code for payment transactions

5. Setup bank determination for payment transactions

6. Setup house banks.

Navigation path

SAP R/3
Automatic Payment Program Run
Role Menu

Transaction FBZP
 code

SPRO > IMG > Financial Accounting (New) > Accounts

receivable (A/R) & Accounts payable (A/P)> Business
IMG menu
transactions > Outgoing payments > Automatic outgoing
path
payments > Payment methods/bank selection > setup
payment program

Enter SAP T-code “FBZP” in command field and execute.

Step 1 : – Setup all company codes

On customizing: maintain payment program screen, click on “All company

codes” to setup all company codes for payment transactions.
On change view company codes overview screen, click on new entries button
to set up all company code for automatic payment transactions.

On new entries screen update the following details.

1. Company Code : – Update the company code: TK01

2. Sending company code : – Update the sending company code, this

is optional field. This is the company code which is known to the
vendor as sending the payments to them.

3. Paying company code : – Update the paying company code: TK01.

This is the company code which is known to the vendor as paying
company to them.

4. Choose separate payment per business area check box if you want to
run payment separately for each business area.
 5. Update the tolerance days for payable by which cash discount period
for the due date for net payment.

6. If you want process maximum cash discount irrespective to payment

terms, choose this option.

7. If you want to make payments for special G/L transactions like down
payment, advance to vendors, update the special G/L indicator from
the given list.

Click on save button and save the configured company codes payment
transactions details.

Step 2 : – Set up all paying company codes

Go back to main Automatic payment program configuration screen i.e.

customizing: maintain payment program, click on paying company codes.
On change view paying company codes overview screen, click on new
entries button.

On new entries screen, update the following details.

1. Paying co.code : – Update the payment company code: TK01

2. Minimum amount for incoming payment: – Update the accepted

minimum incoming payment: 1000

3. Minimum amount for outgoing payment: – Update the minimum

outgoing payment: 1000

4. No exchange rate difference: – If you don’t want to consider the

exchange rate difference while making payment, choose this option.

5. Separate payment for each ref : – Check this option if you want to
pay separately as per invoice wise.
 6. Bill/exch paymt : – Select this option if the payment is made through
bills of exchange.

7. Form for the payment advice : – Choose the payment advice form
the list, press F4 and choose form as per your requirements.

8. Sender details : – Update the details of sender that prints on form i.e.
Text Id, Letter header, footer, etc.

Click on save button and save the configured paying company codes details.

Step 3 : – Set up payment methods in country

Go back to main automatic payment program run screen, click on payment

methods in country.
On change view payment methods/overview screen, click on position button
and update country key IN and press enter. Now the list of defined payment
methods for country IN displays on top of the screen. To define new payment
method for country as per the requirements of project, click on new entries
button.

On new entries screen, update the following details.

1. Country : – Update the country key that you like to configure payment
method.

2. Pymt method : – Update the key that identifies as payment method

for country in SAP.

3. Description : – Update the descriptive text of payment method.

4. Payment Method : – Choose the payment type i.e. Outgoing

payments or incoming payments.

5. Payment Method classification : – Choose the type of payment

method i.e. bank transfer.

6. Choose the option allowed for personal payments if the company

wants this payment method for paying personal payments.

7. Posting details : – Specify the document type for payment and

clearing document type.
Update all the details as per the requirements of project and click on save
button and save the configured payment method in country details.

Step 4 : – Set up payment methods in company code

On customizing: Maintain payment program screen, click on payment

methods in company code.

On change view maintenance of company code data for a payment method

overview screen, click on new entries button for maintaining the payment
method for company codes.

On new new entries payment method for company code screen, update the
following details.
 1. Paying co. code : – Update the paying company code: TK01

2. Pymt Method : – Update the payment method : I (IMPS)

3. Amount Limits : – Update the minimum and maximum amount for

payment transactions.

4. Payment per due day : – Choose this option if the company wanted
to make payment as per due date.

5. Foreign Payment/ foreign currency payments : – Choose the

option as per requirements if the organization wants to allow all types
of foreign currencies, foreign banks, etc.

After maintaining all the required details of payment methods for company
code, click on save button to save the configured details.
Step 5 : – Set up Bank Determination

From the main configuration automatic payment program screen, click on

bank determination option. Bank determination involves the following
configuration steps

1. Ranking Order

2. Bank Accounts

3. Available Amounts

4. Value Date

5. Expenses/Charges

a. Ranking Order

On display view bank selection screen, choose position button and update
your company code in the given field. So your paying company code displays
on top of the screen.

Now choose paying company code “TK01” and double click on ranking order.

On change view ranking order overview screen, click on new entries.

On new entries rank order screen, update the following details.

PM : – Update the paying method of the company as I

Currency : – Update the currency as INR

Rank Order : – Update the ranking order for making the payments bank
wise: 1

House bank : – Update the house bank key: AXISB.

Click on save button and save bank rank order details.

b. Bank Accounts

Double click on bank accounts column and click on new entries button.
On new entries bank accounts screen, update the following details.

 House bank : – Enter house bank key : AXISB

 Pay.Method : Update payment method as: I

 Currency : – Update currency key as INR.

 Account ID : – Update account ID as AXIS

 Bank subaccount: – Update the G/L account of bank (we have

created 200108 for axis bank current A/C).

After maintaining all the required details, click on save button and save
configured bank accounts in SAP.

Double click on available amounts and click on new entries button for
maintaining the amounts details.

c. Available Amounts

Double click on available amounts column and click on new entries button.
On new entries available amounts screen, update the following details.

 House bank – Update the house bank: AXISB

 Account id: – Update the account id: AXIS

 Days: – This is an optional configuration.

 Update available for outgoing payment for the account and scheduled
incoming payments. This is used for only evaluation.

Click on save button and save the configured details.

Step 6 : – House Banks

Here you can create house bank as per requirements of project. It provides
the detailed information of bank for incoming and outgoing payments. Click
on new entries button and create new house banks as
per client requirements. Refer how to create house banks in SAP.

We have successfully configured automatic payment program in SAP. To run

automatic payment program you must have open items in the vendor
account with due and the system considers to run automatic payment
program in SAP.
Copy Reference Chart of Depreciation in SAP – Depreciation Areas

What is Chart of Depreciation?

In SAP, Chart of depreciation is a country specific that provides various pre-

defined charts of depreciation with pre-defined depreciation areas.
Each company code uses one chart of accounts and one charts of
depreciation. We can create charts of depreciation by copying from reference
charts of depreciation

What is depreciation areas?

Depreciation area is two digits alphanumeric key that determines the specific
type of valuations. Depreciation are keys are used in asset master record or
in asset classes.

How to copy reference chart of depreciation in SAP

Transaction code: – EC08

IMG Path: – SPRO >> SAP Reference IMG >> Financial Accounting >> Asset
Accounting >> Organization Structures >> Copy reference chart of
depreciation / depreciation areas.

Step 1) Enter transaction code “SPRO” in the SAP command field and press
enter.
Choose “SAP Reference IMG”
Follow the IMG menu path and click on img activity “copy reference chart of
depreciation/depreciation area”

On choose activity screen, click on “Copy Reference Chart of Depreciation”

Step 2) From organizational object chart of depreciation, click on copy as
icon (copy organization object) or press function key F6.

Step 3) Now copy as screen, you need to update the following details.

 From chart of dep: – Update the depreciation chart key that you would
like to copy. Here we are coping values from 0DE (maximum valuation:
Germany) to our new chart of depreciation.

 To chart of dep: – Enter chart of depreciation key as “TKCD”

After entering the details, press enter to continue.

You get a message of Transport number ranges and address, press enter to
continue.
Step 4) You get a warning message as “do you really want to transport
number ranges”, click on “Yes” button.

Step 5) Now you are prompted for customizing request, choose your request
and press enter to continue.

In next screen, an information box with message displays as “Chart of dep

0DE copied to TKCD” , press enter to continue.

Step 6) Press back button (F3 key) and click on “specify Depreciation of
Chart of Dep.”
Select position button and enter your chart of dep. key in the given field, and
enter to continue.

Now update the descriptive text for chart depreciation TKCD and click on
save button to save the configured details.

Step 7) Now press back button (F3) and click on “copy/delete depreciation
areas”

Select the chart of depreciation “TKCD” as work area and press enter.

Select unwanted areas and click on delete button to delete the depreciation
areas.
Update target group as 0L (Leading Ledger) and click on save button and
save configured details.

Successfully we have defined chart of depreciation and depreciation areas

in SAP.

How to Assign Chart of Depreciation to Company Code in SAP

In this SAP FICO tutorial you will learn how to assign chart of depreciation to
company code in SAP, the link between chart of depreciation and company
code is established through the assignment of chart of depreciation “TKCD”
to company code “TK01”.’

How many chart of depreciation can be assigned to a company

code?

One chart of depreciation can be assigned to only one company code,

because chart of depreciation is highest hierarchy level of asset accounting
in SAP. But one company code can be assigned to one or more chart of
depreciation in asset accounting.

Assign Chart of Depreciation to Company Code

Transaction code: – OAOB

SAP IMG Path: – SPRO > SAP Reference IMG > Financial Accounting > Asset
Accounting > Organizational Structures > Assign chart of depreciation to
company code.

Step 1: – Enter transaction code “SPRO” in the SAP command field and
press enter to continue.

Step 2: – On customizing execute project screen, click on “SAP Reference

IMG”
Step 3: – On display IMG screen, follow the menu path financial accounting –
Asset accounting – organizational structures and click on img activity “assign
chart of depreciation to company code”

Step 4: – To find out our company code “TK01” in the given list, click on
position button and enter company code and press enter to continue.
Step 5: – On change view maintain company code in asset accounting
overview screen, our company code TK01 displays on top of the screen. Now
enter chart of depreciation key “TKCD” in the given field Chrt dep and press
enter.

After assignment of chart of depreciation to company code, click on save

button and save the configured details in SAP.

How to Specify Account Determination in SAP

In this SAP tutorial, you will learn how to specify account determination in
SAP Asset accounting. In our previous SAP fico tutorial we have learned how
to assign chart of depreciation to company code in SAP.

What is Account Determination?

In SAP, account determinations are the keys that are used to link the asset
classes or mater record to the general ledger (G/L) accounts based on the
nature of transaction. The screen layout are required to process the
information in respect of the assets by the users. The number range controls
the number of assets in each class. So we need to create account
determination, screen layouts and number ranges before creation of assets
classes.

Why do we call items as account determinations?

The item will decide which general ledge accounts are to be posted
automatically.

Specify account determination in SAP

Transaction code: SPRO

IMG path: – SPRO > SAP Reference IMG > Financial Accounting > Asset
Accounting > Organizational Structures > Asset Classes > Specify Account
Determination.

Step 1: Enter transaction code “SPRO” in the SAP command field and press
enter.

Step 2: – Select “SAP reference IMG”

Step 3: – On display IMG screen, follow the menu path Financial Accounting
– Asset Accounting – Organizational Structures – Asset Classes and click on
img activity specify account determination.
Step 4: – On change view FI-AA: Account determination overview screen,
click on new entries button for creation of asset accounting account
determination in SAP.

Step 5: – On new entries account determination screen, update the following

details.

 Acct.determ. : – Update the key that specifies the accounts

determination in Asset accounting. You are allowed to enter up to alpha
numeric keys.

 Name for account determination: – Update the descriptive text of

an account determination.

After updating all the required details, click on save button to save the
configured details. Now you are prompted for customizing request, choose
your request and save the details.

Successfully we have defined account determination in SAP.

Create Number Range Intervals for Assets in SAP

In this SAP FICO training tutorials, you will learn how to maintain number
range intervals for assets in SAP asset counting using transaction code AS08.
We can define number range intervals separately for all assets or we can
assign same number object for all assets.
In our previous SAP FICO tutorials we have learned how to create screen
layout rules for assets.

Also read:

 How to create chart of depreciation and depreciation areas in SAP

 Assign chart of depreciation to company code

 Specify account determination in SAP

How to maintain number range intervals for assets

You can create asset number range intervals by using one of the following
navigation method.

Transaction code: AS08

SAP IMG Path: – SPRO > SAP Reference IMG (F5) > Financial Accounting
> Asset Accounting > Organization structure > Asset Classes > Create
number range intervals.

Step 1: – Enter transaction code SPRO in the SAP command field and enter.

Step 2: – On customizing execute project choose “SAP Reference IMG“.

Step 3: – On display img screen, follow the menu path financial accounting –
Asset accounting – Organizational structures – Asset classes and click on
“define number range interval”.
Step 4: – On range maintenance asset number screen, enter the company
code “TK01” in the given field and click on change interval button.

Step 5: – On interval maintenance number range object asset number,

subobject TK01 screen update the following details.
  No: – Update the two digits key that identifies the number range
intervals for assets.

 From No: – Update the starting number for asset number range interval

 To Number: – Update the last number of asset number range interval.

 Ext: – Choose this option, if you like to define number interval for
external assignment purpose.

After updating the all the required details, click on save button to save the
configured details. A message displays with number range interval transport,
ignore the message and press enter to save the data.
Successfully we have maintained number range intervals for assets in SAP.

How to Create Asset Classes in SAP | What is an Asset Class

In this SAP FICO Tutorial, you will learn what is an asset class and how to
create asset classes in SAP system by using transaction code OAOA.

What is Asset Class in SAP / Assets Classes

In SAP, Asset classes are used to classify the fixed assets in the asset
accounting according to the asset types. Each asset master data must be
allocated to one asset class, for e.g. Building, Vehicles, Furniture, Machines,
etc. Asset classes are defined at SAP client level and contain key control
parameters such as number assignment for asset, account determination
and screen layout rules.

How to create new asset classes in SAP

In this SAP FICO training tutorial, you will learn how to configure new asset
class in SAP step by step using transaction code OAOA. In our previous SAP
tutorials, we have learn how to maintain number range intervals for assets in
SAP.

Configuration steps

The creation of asset class in SAP involves the following configuration steps

Transaction code: – OAOA

SAP IMG Path: – SPRO > SAP Reference IMG > Financial Accounting > Asset
Accounting > Organizational structure > Asset classes > Define Asset
classes.

Step 1: – Enter tcode OAOA in the SAP command field and press enter.

Step 2: – On change view asset classes overview screen, click on new

entries button for creation of new asset classes in SAP.

Step 3: – On new entries asset class screen, update the following details.

 Asset Class: – Enter the key that identifies the asset class in the SAP
asset accounting.
 Short text: – Enter the short text of an asset class.

 Asset Type: – Under asset type, update the account

determination key and screen layout rule key in the given fields.

 Number Assignment – Update the asset number range interval key

in the given field for assignment of number range to asset classes. If
you want maintain sub number externally select the check box or leave
external check box.

 Select the No auc or summary management of Auc for all asset

classes.
After maintaining all the required details, click on save button and save the
configured details.

Successfully we have created new asset classes in SAP.