Kasi Viswanath General Ledger Material Kasiviswanath.vsap@gmail.

com

Sap Features:
 Flat form Independent
 Database Independent
 Language Independent
 GUI (Graphic User Inter-phase)
 Currency Independent
 Client server technology/ Independent

ARCHITECTURE
SAP R/3: (2001 – 2006)
 The next generation of SAP software was called SAP R/3.
 This was the most popular release.
 Even today the term SAP is used synonymously with SAP R/3 (the usage may not true any more).
 SAP R/3 was based on client server architecture.
 The presentation layer and the business logic would reside on a desktop.
 The database would run on a database server.
 All desktops would connect to the database server to write and read data.
 If one has to upgrade the business logic then all the desktop would need to be patched.

Shortcut Keys:

F1 - Help

F2 - Conformation

F3 - Previous Session/ Page

F4 - Open Pop-up Window

F5 - New Entries

F6 - Copy – As

F7 - Next Entry

F8 - Execute

F12 - Cancel

Ctrl + S - Save

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Ctrl + Tab - Position (Search/ Find)

Ctrl + N - New Session

Operators:

/N - Home Page

/O - Generate New Session

/NEX - Exit Session without any Conformation

/NEND - Exit Session with Conformation

Note: SAP Provides ‘6 Sessions’ per User, It will Increase Up to “18 Sessions”.

Note 2: in Real Time we Never use “/NEX”.

How to Login SAP:

Client : 800 (Starting Series 8 for Education Purpose)

User Name : sapuser

Password : password

Language : EN (English)

Various Menu Applications:

- Menu Bar
- Transaction Bar
- Shortcut Key Bar
- Function/ Application Bar
- Status Bar

View Various Transaction Codes in SAP:

Transaction Code: SE16

Table Name: TSTC (Transaction, Session Transaction Codes)

Migration Methods/ Gate Keeper Methods:

1. LSMW: Legacy System Migration Work Bench

2. BDC: Batch Data Communication
3. LTMC: Landscape Transformation Migration Cockpit
4. LTMOM: Landscape Transformation Migration Object Modular

LSMW: Legacy System Migration Work Bench

(Explains to Upload Mass “Master Data” into SAP System within Short Time)

Master Data: Explains Properties of a Particular Field.

EX: Customer- Name, Address, Contact Number, E-Mail Id, Etc…

EX: Vendor- Name, Address, Contact Number, E-Mail Id, Etc…

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Note: in Standard SAP Master Data’s are Divided into 3 Categories;

Finance Master Data Controlling Master Data Materiality Master Data

General Ledger Master Data Cost Elements Material (Raw Material)
Bank Master Data Cost Centre Capital Units
Customer Master Data (A/R) Profit Centre
Vendor Master Data (A/P) Internal Order
Asset Master Data Activity Keys
BDC: Batch Data Communication/ Backup Domine Controller.

(Explains to upload Mass “Master Data/ Transaction Data” into SAP System with in Short Time.)

Transaction Data: Explains Day to Day Invoice Postings, like;

- General Ledger Invoices

- Customer Invoices
- Vendor Invoices
- Asset Invoices, Etc…

LTMC: Landscape Transformation Migration Cockpit (Master Data)

 Data Migrate Non-ERP to SAP S/4 Hana Cloud (Full Deployment/ Implementation)
 Data Migrate SAP ECC to S/4 Hana Cloud (Hybrid Deployment)

LTMOM: Landscape Transformation Migration Object Modular (Transaction Data)

 Data Migrate Non-ERP to SAP S/4 Hana Cloud (Full Deployment/ Implementation)
 Data Migrate SAP ECC to S/4 Hana Cloud (Hybrid Deployment)

ECC S/4 HANA

Master Data LSMW LTMC
Transaction Data BDC LTMOM

ASAP METHODOLOGY: Accelerated SAP

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Architecture / System Landscape:

- Development Server
- Quality Server
- Production System/ Server

/ System Landscape

Note: Various Servers in SAP

 ECC: Enterprise Central Component
 CRM: Customer Relation Management

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 SRM: Supply Relation Management

 SCM: Supply Chain Management
 HCM: Human Capital Management

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Various Project Types:

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Various Modules in SAP

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Enterprise Structure

Enterprise Structure:

Path: SPRO – SAP Reference IMG – Enterprise Structure – Definition – Financial Accounting
1. Define Company

Execute

Click on New Entries

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Company Code :

Name :

Country :

Currency :

Language :

Save

2. Define Credit Control Area:

Execute

Click on New Entries

Credit Control Area :

Currency :

Save

Enter Description :

Save

3. Edit/ Copy/ Delete/ Check Company Code:

Edit Company Code Data

Click on New Entries

Company Code :

Name :

City :

Currency :

Language :

Country :

Region :

Save

Application Form

Title :

Name :

Search Term 1 :

Search Term 2 :

City :

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Country :

Region :

Save

4. Define Financial Management Area

Click on New Entries

Fm Area Code :

Description :

Currency :

Save

5. Define Functional Area

Execute

Click on New Entries

Functional Area Code :

Description :

Save

Alternative Method:

T-Code: FM_FUNCTION

Enter Functional Area Code :

Click on Create icon

Description :

Valid From :

Valid To :

Save

6. Define Segment

Execute

Click on New Entries

Segment Code :

Description :

Save

7. Define Business Area

Execute

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Click on New Entries

Business Area Code :

Description :

Save

8. Maintain Consolidation Business Area

Execute

Click on New Entries

Consolidation Business Area Code :

Description :

Save

Assignment:

Path: SPRO – SAP Reference Img – Enterprise Structure – Assignment

1. Assign company code to company

Execute

Click on Position

Company Code :

Company Code Name City Company

Save
2. Assign Company Code to Credit Control Area
Position
Company Code :
Assign Credit Control Area :
Save
3. Assign Business Area to Consolidation Business Area
Execute
Click on Position
Business Area :
Assign Consolidation Business Area :
Save
4. Assign company code to financial management area

Execute

Click on Position

Company Code :

Company Code Name F.M Area

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Save

Financial Accounting New:

Define Field Status Variants:

Path: Financial Accounting (New) – Financial Accounting Global Setting (New) – Ledgers- Fields

Execute (F8)

Note: In Sap Standard Field Status Variant Is “0001”

Select “0001” Line

Click on Copy Icon

From : 0001

To :

(Change to Company Code)

Click on Copy All Icon

Enter

Save

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Double Click on Field Status Group’s

Create/ Check the Fields:

Field Status Group Text

G002 Internal Order
G004 Cost Centre
G010 Profit Center
Save

Note: Ignore if Fields are Created.

2.. Assign Company Code to Field Status Variant.

Execute

Click on Position

Company Code :

Company Code Company Name City Field Status Variant

Save

Chart of Accounts

Chart of Accounts: Explains Group of General Ledger Accounts, Like; Assets, Liabilities, Revenues,
Expenses, Etc…

In SAP Chart of Accounts are of 3 Types.

- Operational Chart of Account (Day to Day Invoice Posting)
- Country Specific Chart of Account (Individual Country Wise)
- Group Chart of Account (Combination of Operational & Country Specific)

Operational Chart of Accounts: used to Record the Day-to-Day transactions in the company
code, it is also known as the standard Chart of Accounts for both Finance and Controlling,
make use of these Element. This can be different from the country Chart of Accounts. Each
company code will work with exactly one operating Chart of Accounts, though the same
chart can be assigned to more than one company code.
Country Specific Chart of Account: used to meet the Country-Specific Legal Requirements,
though it is optional to assign to a company code you will need it when you work with a
different Operating Chart of Accounts, (GAAP: Generally Accepted Accounting Principles,
IFRS: International Finance Reporting/ Regulatory Standards), you can establish the link by
Entering the Country charts G/L account number in the alternate account number field of
the G/L Master Record (under company code section) of the operating Chart of Accounts.
**Group Chart of Account: used for Consolidating all Company codes (with different Operating
Chart of Accounts) belonging to a company, the assignment of Group Chart of Accounts to a
company code is not mandatory, this is also known as the corporate Chart of Accounts.
(Operational & Country Specific Chart of Account)
Note: in Real Time we Use Group Chart of Account for Consolidation and Console Report.

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Consolidation: Explains Parent & Sub-Company Report.

Console: Individual Company (Sub-Company)

Edit Chart of Accounts List:

Path: Financial Accounting (New) - General Ledger Accounting (New) - Master Data - G/L Accounts
– Preparations

1.. Edit Chart of Accounts List

Execute (F8)

Click on New Entries (F5)

Chart of Account :

Description :

Maintain Language : EN

Length of GL :6

Controlling Integration: Automatic creation of Cost Elements

Group Chart of Accounts < Blank>

Save

2.. Assign Company Code to Chart of Accounts

Transaction Code: OB62

Execute

Click on Position

Company Code :

Company Code Company Name City Chart of Group Chart of

Accounts Accounts

Save

3.. Define Account Group

Execute

Click on New Entries

Chart of Account Name From Account To Account

Account Group
LIAB Liabilities 100000 150000
ASSE Assets 200000 250000
CLEA Clearing Accounts 199996 199999
CONT Contingent Liability 199995 199995
REVE Revenues 300000 350000

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EXPE Expenses 400000 450000

Save

4.. Define Retained Earnings Account

Execute

Chart of Accounts :

P& L Statement Account

X 101000
Save

Manual GL Account Creation: FS01

Description Basic GL Recon.GL Tax GL

GL Account Number 100000 200301
Company Code 6901 6901
Short Text CAPITAL Debtor Input tax
Long Text CAPITAL Debtor Input tax
Balance Sheet Account YES Yes Yes
P& L Statement Account Type
Functional Area
Account Group LIAB Asse Asse
Account Currency INR Inr Inr
Only Balances in Local Currency YES Yes yes
Tax Category *
Posting Without Tax Allow yes
Recon Account for Account customer
Type
Inflation Key
Open Item management Yes
Line Item display YES Yes Yes
Sort key 001 001 001
Field Status Group G001 G067 G001
Post Automatically Only
Relevant to Cash Flow
House Bank
Account Id
Save

Description Open Item Post Bank

Management Automatically
GL Account Number 110401 200402 200700
Company Code 6901 6901 6901
Short Text RENT PAYABLE PETTY CASH MAIN BANK
Long Text RENT PAYABLE PETTY CASH MAIN BANK
Balance Sheet Account YES YES YES
P& L Statement Account
Type
Functional Area

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Account Group LIAB ASSE ASSE

Account Currency INR INR INR
Only Balances in Local YES YES YES
Currency
Tax Category
Posting Without Tax Allow
Recon Account for Account
Type
Inflation Key
Open Item management YES
Line Item display YES YES YES
Sort key 001 001 001
Field Status Group G001 G005 G005
Post Automatically Only YES
Relevant to Cash Flow YES
House Bank
Account Id
Save

Description Revenues Expenses Cost Element Cost Element

Revenues Expenses
GL Account Number 300000 400000 310001 410001
Company Code
Short Text SALES PURCHASES INTEREST RENT PAID
REVENUE RECEIVE
Long Text SALES PURCHASES INTEREST RENT PAID
REVENUE RECEIVE
Balance Sheet
Account
P& L Statement X X X X
Account Type
Functional Area
Account Group REVE EXPE REVE EXPE
Account Currency INR INR X INR
Only Balances in X X X X
Local Currency
Tax Category
Posting Without Tax
Allow
Recon Account for
Account Type
Inflation Key
Open Item
management
Line Item display X X X X
Sort key 001 001 001 001
Field Status Group G029 G001 G010 G004
Post Automatically
Only

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Relevant to Cash
Flow
House Bank
Account Id
COST ELEMENT 11 1
CATEGORY
Save

General Ledger Creation Field Theory

GL Account Number Enter the G/L account number to be created and the company
code in which the G/L account is to be created.
Account Groups The account group field is used to group together general ledger
accounts on the basis of the functionality. The account group field
defines the number range which can be used for a certain
category of accounts. It also defines which fields are available on
the different tabs while creating a general ledger account.
P & L Account one of the main reasons for defining general ledger accounts is to
have the ability to produce financial statements. A general ledger
account may be included in the balance sheet or the profit and
loss statement depending on its type. For example, a ‘Utilities
Expense’ Account has to be defined as the profit and loss account
as it forms a part of the profit and loss statement while any fixed
asset account has to be defined as the balance sheet account, as it
forms a part of the balance sheet. Select the type of general
ledger account
Short & Long Text Enter a short as well as a long description of the GL account. The
description should make it easy to understand the purpose of the
account. A group account number may be defined to assign a
group of general ledger accounts to the balance sheet or the
profit and loss statements.
Account Currency The account currency is the currency in which the account
balances are to be maintained. The recon account indicator sets
the general ledger account as a reconciliation account.
Reconciliation accounts can be defined for assets, customers or
vendors. The tax category can be used to define only input tax,
only output tax or both the taxes for the general ledger account.
 Field Status The field status group decides which fields are available for data
Group entry for this G/L account. The interest calculation frequency
defines the number of months after which the interest is
recalculated.
Only Balances in Local To update the Balances only in local Currency when user posts the
Currency items to this GL Account
Tax Category Use the Drop Down Menu and select Tax code key if account is
Tax Relevant
Posting Without Tax If Posting for Account is Without tax
Allow
 Recon Account Asset/ Customer / Vendor If account is for Reconciliation Account
for Account
Type
Tolerance Group The Field for Open Item Clearing Differences.

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 Open Item If Account to be Display as per Open Item Lines, Open item
Management Management is used for only Balance Sheet Account
Line Item Display Account to be Display as per line Item
Sort key Appropriate Sort key for the account
Post Automatically only Account can posted by the System using Account Determination
Table
 Relevant to Determines the GL Account is a Cash Flow Account
cash Flow
House Bank Account is Indicator for Company Bank
Account ID House bank of Account
 Primary Cost Primary cost element or revenue element, it must be listed first
element as a G/L account in the chart of accounts and defined as an
account in Financial Accounting. In other words, primary cost
elements and revenue cost elements require counterparts in FI.
When you create a primary cost/revenue element, the SAP
System checks whether a corresponding account exists in FI.
Secondary Cost Used exclusively in Controlling (CO) and need not be defined in FI.
Element It can be used for internal allocation purpose.
Interest Indicator Account is to be Included in automatic interest Calculation
Interest Calculation Interest Is to be Calculated automatically for this account at
Frequency Interval’s
Key Data of Last Date of Last Time Interest Calculation Program Processed for this
Interest Calculation Account.
Date of last interest Calculation for this interest.
Run

Different Tabs In GL Accounts:

GENERAL DATA TAB Short Text

Long Text
Balance Sheet Account
Profit/ Loss Account
Functional Area
Account Group
CONTROL DATA TAB Currency
Only Balances in Local Currency
Tax Category
Posting With Out Tax Allow
Recon Account for Account Type
Open Item Management
Line -Item Display
Sort Key
CREATE /BANK / INTEREST Field Status Group
Post Automatically
Relevant To Cash Flow
Interest Indicator
Interest Frequency
House Bank
Account Id
Reset General Ledger Table: OBR2

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** Migration Procedure Flow:

1. Maintain Object Attributes

2. Maintain Source Structure
3. Maintain Source Fields
4. Maintain Structure Relation
5. Field Mapping & Conversion Rules
6. Specify Files
7. Assign Files
8. Read Data
9. Display Read Data
10. Convert Data
11. Display Convert Data
12. Create batch input Session
13. Run Batch input Session

Naming Conversion:

Z - Functional Base User Define Application

S - GL Accounts

AP01 - Company Code

01 - Source Structure

02 - Target Structure

Project - Total GL Accounts

Sub-Project - Account Groups

Object - Individual GL Account

Source Structure :

Target Structure :

Transaction Code: LSMW

Click on Create Entry Icon

Project :

Description :

Enter

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Sub- Project :

Description :

Enter

Object :

Description :

Enter

Execute (f8)

1.. Maintain Object Attributes

1)Choose if the data transfer is once or periodic

2)Choose method for input of data.

3)In the method to input data from a BAPI, one needs to select the Business Object and the
corresponding method.

4)If Batch input recording is selected one can enter further recordings by clicking at the arrow

Action log: Displays a detailed overview for all processing steps already carried out. You can reset
the action log via the menu path Extras -> Reset Action Log. This action is stored with a reference to
the user and the date.

Execute (f8)

Click on Display or Change icon

Select batch input Recording

Go to on Menu Bar- Select Recording Overview – Select Recording Line

Click on Create Recording icon

Recording :

Description :

Owner: username

Enter

Transaction Code: FS01

Note:

F : Finance

S : General Ledger

01 : Create

Note: Source GL Fields

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Table Character Length DESCRIPTION

SAKNR C 6 GL account number
BUKRS C 4 Company code
TXT20 C 20 Short text
TXT50 C 50 Long text
XBILK C 1 Balance sheet
GVTYP C 1 Profit & loss
FUNC_AREA C 10 Functional area
KTOKS C 4 Account group
WAERS C 3 Currency
XSALH C 1 Only balance in local currency
MWSKZ C 1 Tax category
XMWNO C 1 Posting without tax allow
MITKZ C 1 Reconciliation account
XOPVW C 1 Open item management
XKRES C 1 Line -item display
ZUAWA C 3 Sort key
FSTAG C 4 Field status group
Gl Account Number : 100000

Company Code :

Short Text : Capital

Long Text : Capital

Select : Balance Sheet Account

P& L Statement Account Type : Spacebar

Functional Area : Spacebar

Account Group : LIAB

Enter

Account Currency : INR

Select : Only Balances in Local Currency

Tax Category : Spacebar

Select : Posting Without Tax Allow

Recon Account for Account Type: Spacebar

Select : Open Item management

Select : Line- Item display

Sort key : 001

Field Status Group : G001

Save

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Select: Light Orange Colour Line

Click on Default All Icon

Save

Back (F3) – 3 Times

Select Recording line – Click on F4 Button

Save

2.. Maintain Source Structures:

In the step ‘Maintain Source Structures’ you define the structures of the object with name,
description and the hierarchical relationships:

Click on Change button. You can now define, change, reassign or delete structures. All these
functions are available via pushbuttons.

When you define more than one structure, a popup is displayed querying the relations
between the structures: equal/subordinate?
Note: For migration objects created via transaction recording, you may only define one structure per
recording, since only one flat target structure per recording is available.

Select Source Structure Line

Click on Display / Change Icon

Click on create Structure icon

Source Structure :

Description :

Enter – Save

3.. Maintain Source Fields

In the step ‘Maintain Source Fields’, fields are created and maintained for the source structure
defined in the preceding step

Use source fieldnames with the same names as the target fieldnames as much as possible,
because it allows you to use the ‘auto-field mapping’ function in step 5 ‘Maintain field mapping and
conversion rules.

Execute

Select Target Structure Line :

Click on Display/ Change Icon

Click on Table Maintenance icon

Table Character Length Description

SAKNR C 6 GL account number
BUKRS C 4 Company code

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TXT20 C 20 Short text

TXT50 C 50 Long text
XBILK C 1 Balance sheet
GVTYP C 1 Profit & loss
FUNC_AREA C 10 Functional area
KTOKS C 4 Account group
WAERS C 3 Currency
XSALH C 1 Only balance in local currency
MWSKZ C 1 Tax category
XMWNO C 1 Posting without tax allow
MITKZ C 1 Reconciliation account
XOPVW C 1 Open item management
XKRES C 1 Line- item display
ZUAWA C 3 Sort key
FSTAG C 4 Field status group
Save

4.. Maintain Structure Relations

In the step ‘Maintain Structure Relations’, the structural relationships between source and
target structures are defined. The possible target structures are defined during the selection of the
object type and the import technique

To define structural relationships, position the cursor on the field target structures. Clicking
create Relationship button opens a window that displays the existing source structures for selection

If you want to change the relation, remove the existing relation first. In addition, you can use
Check to check the structural relationships for errors

Execute

Select Source Structure line :

Click on Display or Change Icon

Click on Create Relation Ship icon

Information: A Source Structure Already Assign to Target Structure

Save – Back

5.. Maintain Field Mapping and Conversion Rules

In the step ‘Maintain Field Mapping and Conversion Rules’, you assign source fields to target
fields and define how the field contents will be converted

All fields of target structure, which you selected in the previous step, will be displayed.

For each target field the following information is displayed:

- Field description

- Assigned source fields (if any)

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- Rule type (fixed value, translation etc.)

- Coding

Execute

Select SAKNR line

Click on Display / Change Icon

Click on Extras on Menu Bar

Select Auto Field Mapping

Select No Conformation

Save

6.. Specify Files

In the step ‘Assign Files’, you can assign the file name in step 7 declared as source file to the
target structure defined in step 2 .

If you click on the Assign File button, after clicking once on a target structure (in yellow),
LSMW displays the list of available source files.

gl sheet_Students.xlsx ZSAP0101.txt

Execute

Select Legacy data on the PC (Frontend)

Click on Display / Change Icon

Click on Add Entry Icon

File : Select Text File

Name : LSMW GL

Select : Tabulator

Save – Back

7.. Assign Files:

In the step ‘Assign Files’, you can assign the file name in step 7 declared as source file to the
target structure defined in step 2 .

If you click on the Assign File button, after clicking once on a target structure (in yellow),
LSMW displays the list of available source files.

Execute

Select Target Structure Line :

Click on Display/ Change Icon

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Click on Create Assign File icon

Save

Information: A file has already been assigned to source Structure.

8.. Read Data

In the step ’Read Data’, the file specified in previous step is, as linked to the target structures
in. Even though you can select a range of transaction numbers, the whole file is being read, only the
number of transactions written is influenced. So, for tests it is easier to read all data and convert
only a certain range, because in that step the program stops after finishing the range.

Execute – Execute

Select Remember my Decision – Allow

Transaction’s Read:

Back

9.. Display Read Data

In the step ‘Display Read Data’, you can display the read data, choosing to show all read data or an
interval as shown above. The data are shown as the source structures, in case more source
structures are being used in one transaction, the hierarchy of the transaction is displayed by the use
of a different colour legend. By clicking on one of the lines, you proceed to the field level of the line,
where you can check the read data as shown below.

Execute – Enter

Shows the Uploaded data

Back

10.. Convert Data

In the step ‘Convert Data’, works like the step ‘read data’, but uses the conversion program instead
of the read program. You can define a range of transactions to be converted, at the end of this range
the conversion program stops running.

Note: It is recommended that when you load big amount of data in production, load the first 10
records so that you can check and change when necessary.

Execute – Execute

Files Converted

Back(F3)

11.. Display Converted Data

In the step ‘Display Converted Data’, you can display the converted data, choosing to show
all converted data or an interval as shown above. The data are shown as the target structures, in
case more target structures are being used in one transaction, the hierarchy of the transaction is
displayed by the use of a different colour legend. By clicking on one of the lines, you proceed to the
field level of the line, where you can check the converted data as shown below.

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Execute – Enter

System Shows the Uploaded File.

12.. Create Batch Input Session

Execute

Select: Keep Batch Input Folder’s

Execute

Information: one batch Input Folder with Transactions Created

13.. Run Batch Input Session

Execute

Select Source Structure line :

Click on Process Icon

Select Display Errors Only

Click on Process Icon

Click on Session Overview

Status: Processed.

To View GL Accounts: FS03

Copy GL Accounts : FS15

GL Account From : 100000

GL Account To : 450000

Select: with General Master Data

Company Code :

De-Activate : Test Run

Select : GL Account Detail Log

Execute

Back Button – Back Button – Save

Check GL Accounts : FS00

Document Splitting:

 Classify G/L Accounts for Document Splitting

Account From Account To Overrd Category

100000 250000
300000 350000
400000 450000

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Save

Activate Document Splitting:

Transaction code: FAGL_ACTIVATION

Execute
Double Click on De-Activation per Company Code
Click on Position & Enter Company Code:
Company Code Company Name In-Active
Active

Save

Define Zero-Balance Clearing Account

For account assignment objects for which you want to have a zero balance setting, the system
checks whether the balance of account assignment object is zero after document splitting.

If this is not the case, the system generates additional clearing items. In this activity, you have to
create a clearing account for these additional clearing items.

Select “000” line – Zero Balance Clearing Account

Double Click on Accounts

Account Description
199999 Zero Balance Clearing Account
Save

NEW GENERAL LEDGER:

Ledgers for G/L Accounting

LEADING LEDGER: it is integrated with all subsidiary ledgers, designate one of the ledgers as
the leading ledger and this will be updated in all company codes. This ledger automatically
receives the settings (like currency, Fiscal year Variant and Posting Period Variant) that apply
to a company code. There is only one leading ledger per client, and you should use the SAP
supplied total Tables and in SAP Standard Leading Ledgers “0L”.
0 – Controlling Version

L - Leading Ledger

Leading Ledger for Consolidation Reports. (Parent & Sub-Companies Report)

Define and Activate Non-Leading Ledgers

Defined as parallel ledgers to the leading ledger you need to activate these ledgers
Manually for each of the company codes, (Sub-Company) you can use them to represent
the Generally Accepted Accounting Principles (GAAP) applicable for the country wherein

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your company is located. Such ledgers can have a different Fiscal Year Variant, second or
third parallel currency than that of the leading ledger in each of the company codes. When
you create a non-leading ledger SAP automatically creates a ledger group with the same
name.
** Define Ledger Group/ REP-Ledger:

Maintain Ledger group, to determine the posting period and to check whether the
posting period is open. If the posting period for the representative ledger is open, the
system allows to post in all ledgers of the group, even if the posting period of the non-
representative ledgers is closed. Each ledger group must have exactly one representative
ledger. If all ledgers in the ledger group have a different fiscal year variant to that of the
company code, you can designate any ledger as the Representative Ledger.
If one of the ledgers in the ledger group has the same fiscal year variant as that of the
company code, that ledger must be designated as the Representative Ledger.
Execute

Path: Financial Accounting (New) – Financial Accounting Global Setting (New) – Ledgers – Ledger

1. Define Ledgers for General Ledger Accounting

Execute

Click on New Entries (F5)

Ledger Ledger Name Total Table’s

FAGLFLEXT
Save

2.. Define Currencies of Leading Ledger

Specify the currencies to be applied in the leading ledger. You can make the following settings for
each company code:

The local currency (as company code currency) is specified in the company code settings.
You can define one or two additional local currencies that you store per company code parallel to
the first local currency.

For additional local currencies you define the following data per company code:

 Currency type

The currency type defines the role of the parallel currency. A distinction is made between the
following types of currencies:

 Company code currency

 Group currency
 Hard currency
 Index-based currency
 Global company currency

Execute

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Click on New Entries (F5)

Enter Company Code:

1st Local Currency:

Currency Type :

Valuation :

Exchange Rate Type :

Secure Currency :

Translation date Type :

Save
Define and Activate Non-Leading Ledgers:
Execute

Click on New Entries (F5)

Enter Ledger :

Company Code Company Name C1 Currency 1

10 INR
Save

Assign Scenarios and Customer Fields to Ledgers:

Execute

Select Company Ledger Line

Double Click on Scenario

Scenario Long Text

GSBER Business Area
UKV Cost of Sales Accounting
Save

Activate Cost of Sales Accounting:

Activate cost of sales accounting for your company codes, which means that when you post to these
company codes, the functional areas are derived and updated.

Execute

Click on Position

Company Code :

Company Code Company Name COS Status

Active
Save

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Define Ledger Group:

Execute

Select Company Ledger Line :

Double Click on Ledger Assignment

Select : REP Ledger

Save

Enter Global Parameters (OBY6)

In SAP a company code as I have mentioned is a representative of a stand-alone legal entity that
requires its own set of accounting records for reporting purposes. Before we finish off the company
code configuration, I want to create a workflow variant, this allows you to group and route the
documents processing of several company codes, the workflow variant helps in posting and payment
release which are routed to users and processes in the system for approval or further processing.
We will use transaction code OBWA

After you have saved you will see the workflow variant in the view/display screen

Now we will finish off the configuration of the company codes, for this we will use transaction OBY6,
the global parameters control how a company code behaves in the system, these parameters
influence the way system process the business transactions. All 35 parameters are grouped into two
categories

 Accounting Organization
 Processing Parameters

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Ledger Material [email protected]
Organization

chart of accounts the chart of accounts that will be used for this company code

the company is different from the company code, a company is generally used in the
company legal consolidation module to roll up financial statements of several company codes. A
company can consist of one or more company codes.

this controls the credit limits (tolerances) for your customers, a credit control area can
credit control area
be linked to one or more company codes.

select this box only when you use the company code as external entity so as to use the
ext co code document entry function for external SAP systems, the setting is only relevant if you
are using ALE.

set this indicator when all the customizing data transfers are complete and yo are
company code is
ready to go live, when set the system will prevent resetting of data for a company
productive
code, which basically means you cannot delete any data from the company code.

country chart of use this when when a country chart of accounts is different from the operating chart of
accounts accounts

FM areas are used for advanced functions of the treasury module, more specifically for
FM Area funds management which allows you clients organization to budget commitments and
financial resources, they can contain more than one company code.

Fiscal Year Variant See Fiscal Year for more details

in conjunction with ext.co.code enter the cross-system company ID of the external

Global Co Code company code that will be used in the document entry function as a sender or
receiver, this is only used if you are using ALE.

VAT Registration used within the European Union for tax-exempt deliveries for the EC sales list. (Enter
No one for the UK company)

Processing Parameters

Document Entry you can use this for entering country-specific features in document processing, we will
screen variant select 2 as we require for extended withholding tax.

Field status the FSV groups together several fields status group to specify which fields are required,
variant optional or suppressed when processing transactions.

pstng period
the PPV controls the opening and closing of posting periods for each company code.
variant

if you are working with different currencies in your organization enter the maximum
Max Exchange percentage rate in which a foreign currency transaction can deviate from the rates
rate deviation entered in the exchange rate tables, an exchange rate can deviate because SAP gives
you the option of specifying an exchange rate when entering a document in a foreign
currency. If the exchange rate is entered manually on the document deviates from the

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exchange rate specified in the exchange rate table by more than the percentage
specified in this field a warning message is displayed

used for the creation of G/L accounts which acts as the template from which certain
Sample acct rules
data can be transferred to newly created G/L accounts, the transfer is controlled by
var
data transfer rules.

allows grouping to route documents in posting and payment release, see company
Workflow variant
code global parameters for more information

only used for inflation accounting functionality, SAP have inflation indexes that are pre-
Inflation method
delivered, they are specific to a country.

leave blank for the system to pull the exchange rate from the document header for
translating the tax amounts into local currency balances. You can have alternative
Crcy trans for tax
options such as manual entry of exchange rate or the exchange rate to be based on the
posting date or document date

CoCD -> CO Area used for the controlling area, see the controlling section for more details.

Cost of sales used for functional areas in your master data, thereby creating an additional dimension
accounting actv for categorizing costs.

Negative postings the system will make an entry with an opposite sign for reversals, this negative posting
permitted will not increase the trail balance on either side.

used to activate cash management and liquidity forecast, additional information will be
Active CM stored for purchase orders, sales orders, etc relating to transactions affecting liquidity
within the treasury module

this draws business area financial statements, when select the business area is made
Business area fin
mandatory during data entry for postings

select when using year-dependant document number ranges, when selected the
Proposal fiscal
system defaults to the last document number processed along with the corresponding
year
fiscal year during transaction postings

Define default
sets the current date the default date for the value date for the line items
value date

No forex rate diff used to control how foreign currency open items are cleared in local currency. When
when clearing in selected the systems clears the foreign currency open items using the prevailing
LC exchange rate when those open items were created

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the cash discount is deducted from the total invoice amount to calculate the tax base
by means of this setting, whether this field can be used is based upon the laws of the
country where the company conducts business. For example lets say an invoice is $100
Tax based is net
but offers a discount of $2 for payment within 10 days, the tax base is $98 the total
value
invoice amount ($100) less the cash discount ($2), the tax calculation carried out by the
system will then be $98 times the applicable tax rate. If this was not set the tax would
be $100 the total invoice amount.

the system ignores the tax amounts to arrive at the discount base for calculating
discount. The discount will be on invoice amount less the tax, when not selected the
system includes the tax amount as well in arriving at the discount base. For example an
invoice is $225 and offers a cash discount of 2% if paid within 30 days, of the total
Discount base is
invoice amount $200 relates to materials and $25 relates to sales tax. if this indicator is
net value
set the cash discount base will be $200, the amount of the materials only, relating to a
total payment of $221 that is $200 * (1.00 - .02) plus the $25 tax amount. if the
indicator is not set then $220.50 that is $225 * (1.00 - .02). For countries that uses tax
jurisdictions for their tax procedure this field is ignored.

this controls the reporting and processing of incoming payments and their clearing in
Financial assets the customer area and is used to pass on payment information (especially to the loans
mgmt active subcomponent of treasury management) when using bank account statement
processing and the payment program

used for additional postings are carried out during the posting of receipts of goods and
services. Purchase accounting segments the cost of externally related materials, for
Purchase acct
example you would want to utilize purchase account processing if you do not want
proc
freight values for moving average-priced materials to be included in your inventory
balance.

JV accounting
used for joint-venture accounting
active

this enables splitting and posting of an invoice or credit memo, on payment terms or
Enable amount
payment method, this function is possible in the invoice or credit memo entry single-
split
screen transaction developed as an Enjoy transaction

Tax Reporting
reports the date for tax reports
date active

Execute

Click on Position

Enter Company Code:

Tax Base is Net Value

Discount Base is Net Value
Negative Posting permitted
Enable Amount Split

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Save

Maintain Fiscal Year Variant (Maintain Shortened Fisc. Year)

There are 12 posting periods that correspond to the 12 calendar months, with
the first posting period starting on 1st January. Normally you use the calendar
Calendar Fiscal
as the fiscal year which means the start and end date of each posting period is
Year
the same as that of the corresponding calendar month. Depending on posting
date the system will assign the correct period to a transaction.

a fiscal year that does not corresponding to a calendar year is known as a non-
calendar fiscal year, and thus such posting periods may or may not match to
Non-Calendar
the calendar months. Its possible that a fiscal year has fewer then 12 posting
Fiscal Year
periods (shortened fiscal year) which means you have to define the number of
posting periods.

Execute

Select : V3 Line

Double click on Periods

Click on

Assign Company Code to a Fiscal Year Variant:

For every company code, you must specify which fiscal year variant is to be used.

Requirements: Defined the relevant fiscal year variant. The variant does not contain more than 16
periods. For more information,

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Execute

Click on Position

Enter Company code :

Company Code Company Name Fiscal Year Description

Save

Define Variants for Open Posting Periods

Standard settings: A separate variant for posting periods is defined for every company code. The
name of this variant is identical to the company code name. Every company code is allocated to this
variant with the same name. Thus nothing has changed in the system yet: Every company code
has its own variant. If you want to and can continue working on this basis (for example, if you
manage with only a few company codes), you do not have to make any changes in the configuration.
If however, you want to use identical variants in several company codes, you must change the
default settings as described in the "Activities" section.

Activities

1. Change the name in one of the variants

2. Allocate all company codes, for which you want to use identical variants for open posting periods, to
this variant. Detailed information on this can be found in the chapter "Allocate company code to
variant"
3. Delete the variants no longer required

Execute

Click on New Entries (F5)

Variant Name

Save

Assign Variants to Company Code

Make the specification that is necessary to be able to work in several company codes with the same
variant for open posting periods. For this reason, you assign the same variant key to the company
codes you want to group together.

Execute

Click on Position

Enter Company code:

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Company Code City Variant

Save

Open and Close Posting Periods:

Specify which periods are open for posting for each variant. You have two time intervals (time period
1 and time period 2). In each interval, specify a period lower limit, a period upper limit, and the fiscal
year. You close a period by selecting the period specifications so that the period to be closed does
not fall within them. You can also assign authorization groups for permitted posting periods. This
means that in month-end or year-end closing for example, you can open some posting periods
for specific users only. The authorization group only has an effect on time period 1. The
authorization object is F_BKPF_BUP (Accounting document: Authorizations for posting periods). For
more information about assigning authorizations

Note: Specify G/L account numbers for your specifications. You define the permitted posting
periods for the sub-ledger accounting accounts using the relevant reconciliation accounts. To do this,
specify the account type for the sub-ledger accounting, such as D or K, and the relevant
reconciliation account.

Caution: There must be a minimum entry for each variant. This entry must have “+” in column K , and
the columns From Account and To Account must not contain entries. In the columns for the posting
periods, specify the periods you want to always be open in this variant. With further entries, you
define more specifically which periods are to be open for which accounts.

Activities

1. Specify the periods permitted for posting.

2. First enter the periods permitted for posting for all variants (minimum entry).

3. Then add entries for account types or account areas if the periods are to be further restricted
for specific accounts.

4. In addition, enter an authorization group for each time period 1 in order to limit user access

Execute

Click on New Entries

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Variant Attribute To. From Year To Year From Year To Year

Account per.1 Period Period Period
2 2

Save

Open and Close Posting Periods According to G/L Account Assignment:

Specify which posting periods are open for the posting for each variant and account assignment
object. Two time intervals are available for this (period 1 and period 2). You specify a lower and
upper limit for the period and the fiscal year in each interval.

You close periods by choosing the period specifications in such a way that the periods to be closed
are no longer included.

You can also assign authorization groups for permitted posting periods. As such, you can for example
open certain posting periods for specific users only for a particular month or year-end closing. The
authorization group can only be assigned as document header level and is only valid for period 1.
The authorization object is called F_BKPF_BUP (Accounting document: Authorizations for posting
periods).

Activities

1. Enter the variant of the posted company code and account assignment object of general ledger
accounting for which you want to either open or close the posting periods.

2. Specify the interval of the affected account assignments and periods that are allowed for the
posting

3. Enter an authorization group for each period 1 for which you want to create an authorization
protection

Execute

Click on New Entries (F5)

Variant Field Name

Save

Document

Document Types and Number ranges

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Number
Type Description Range
AA Asset Posting 01
AB Accounting Document 01
SA G/L Account Document 01
AF Depreciation Pstngs 03
SK Cash Receipt Doc 13
SP Cash Payment Doc 01
RV Billing Doc.Transfer 00
DZ Customer Payment 14
DA Customer Document 16
DG Customer Credit Memo 16
DR Customer Invoice 18
KZ Vendor Payment 15
KA Vendor Document 17
KG Vendor Credit Memo 17
KR Vendor Invoice 19
ZP Payment Posting 20
ZR Bank Reconciliation 20
ZV Payment Clearing 20
CJ Cash Journal 04

 Define Document Types for Entry View

 Define Document Types for Entry View in a Ledger

Execute

Ledger :

Type Number Range

Save

 Define Document Types for General Ledger View

Execute

Ledger :

Type Number Range

Save

DocumentNumberRanges

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Define Document Number Ranges for Entry View –FBN1

Execute

Company Code :

Click on Change Interval Icon :

Click on Insert Interval Icon

No Year From Number To Number Current Number

01 1 1000 0
04 1001 2000 0
X1 2001 3000 0
X2 3001 4000 0
18 4001 5000 0
19 5001 6000 0
14 6001 7000 0
15 7001 8000 0
16 8001 9000 0
17 9001 10000 0
20 10001 11000 0
49 11001 12000 0
50 12001 13000 0
51 13001 14000 0
Save

B.. Copy to Company Code

Execute

Number Ranges From :

Number range to :

Fiscal Year :

Source Company Code :

Target Company Code From :

Target Company Code To :

Execute

Back

Save

Variant Name :

Meaning :

Save

C.. Copy to Fiscal Year:

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Execute

Company Code :

Number Ranges From :

Number range to :

Source Fiscal Year :

Target Fiscal Year :

Execute

Back

Save

Variant Name :

Meaning :

Save

 Define Document Number Ranges for General Ledger View –FBN1

Execute

Company Code :

Click on Change Interval Icon :

Click on Insert Interval Icon

NO Year From Number To Number Current

Number
01 1 10000 0

Save

 Copy to Company Code

Execute

Number Ranges From :

Number range to :

Fiscal Year :

Source Company Code :

Target Company Code From :

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Target Company Code To :

Execute

Back

Save

Variant Name :

Meaning :

Save

 Copy to Fiscal Year:

Execute

Company Code :

Number Ranges From :

Number range to :

Source Fiscal Year :

Target Fiscal Year :

Execute

Back

Save

Variant Name :

Meaning :

Save

Define Posting Keys

Define posting keys. Users specify a posting key before entering a line item. The posting key controls
how the line item is entered and processed.

For each posting key, you define among other things:

 which side of an account can be posted to,

 which type of account can be posted to, and

 which fields the system displays on the entry screens and whether an entry must be made (field
status).

Note: The system also uses the field status group you specify in a G/L account to determine the
status of fields in document entry. Field status groups are defined within a field status variant.

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Recommendation: Use the posting keys delivered with the standard system.

Activities

1. Check the standard settings.

2. Modify them if necessary.

In particular, you may need to make changes to customer and vendor posting keys if a different field
status is required.

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Save back

Note: All Posting Keys are Pre-Define in SAP.

Tax on Sales/Purchases

Financial Accounting New Financial Accounting Global Settings New Tax on Sales /Purchases
Posting Assign Tax Codes for Non-Taxable Transactions.

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Execute

Click on Position

Company Code :

Company Code Company Name City Input Tax Output Tax

Save

Tolerance Groups

Financial Accounting New Financial Accounting Global Settings New - Document – Tolerance
Groups

A. Define Tolerance Groups for Employees

Execute

Click on new Entries

Company Code :

Currency :

Amount Per Document :

Amount Per Open Item Account Item:

Cash Discount Per Line item :

Permitted payment Difference :

Amount Percentage Cash Discount Adj

Revenue
Expense
Click on Next Entry icon

Group :

Company Code :

Currency :

Amount Per Document :

Amount Per Open Item Account Item:

Cash Discount Per Line item :

Permitted payment Difference :

Amount Percentage Cash Discount Adj

Revenue
Expense
Save

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Kasi Viswanath General Ledger Material [email protected]

Tolerance for General Ledger: OBA0

Click on New Entries (F5)

Company Code :

Description :

Tolerance for Group of G/L account in Local Currency:

Debit Posting Percentage

Credit Posting Percentage
Save

Click on Next Entry Icon

Company Code :

Tolerance Group :

Description :

Tolerance for Group of G/L account in Local Currency:

Debit Posting Percentage

Credit Posting Percentage
Save

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