SAP S4 HANA FI

Configuration Document

By Hamza Ishaq
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1. ENTERPRISE STRUCTURE .....................................................................................................................4

1. CREATION OF COMPANY CODE – TCODE OX02 ............................................................................................. 4
2. CREATION OF CHART OF ACCOUNTS- T CODE OB13 .................................................................................... 5
3. ASSIGN COMPANY CODE TO CHART OF ACCOUNTS (T CODE OB62) ............................................................ 7
4. DEFINE ACCOUNT GROUPS (T CODE OBD4) .................................................................................................... 8
5. DEFINE RETAINED EARNING ACCOUNT ( T CODE OB53 ) ............................................................................... 9
6. MAINTAIN TOLERANCE GROUP FOR G/L ACCOUNTS (T CODE OBA0) .......................................................... 10
7. DEFINE FIELD STATUS VARIANT (TCODE OBC4) .......................................................................................... 11
8. ASSIGN COMPANY CODE TO FIELD STATUS VARIANT (TCODE OBC5) ......................................................................... 12
9. MAINTAIN FISCAL YEAR VARIANT (TCODE OB29) ....................................................................................... 12
10. ASSIGN COMPANY CODE TO FISCAL YEAR VARIANT (TCODE OB37) ........................................................................... 13
11. DEFINE VARIANTS FOR OPEN POSTING PERIODS (TCODE OBBO) .............................................................................. 14
12. ASSIGN POSTING PERIOD VARIANT TO COMPANY CODE (TCODE OBBP) ...................................................................... 15
13. OPEN AND CLOSE POSTING PERIODS (TCODE OB52) .............................................................................................. 15
14. MAINTAIN CONTROLLING AREA (TCODE OX06) ..................................................................................................... 16
15. DEFINE ACCOUNTING PRINCIPAL ........................................................................................................................ 17
16. MAINTAIN VERSION (FOR CONTROLLING) ............................................................................................................ 18
17. DEFINE LEDGER FOR CO VERSION ...................................................................................................................... 18
18. DEFINE PROFIT CENTER STANDARD HIERARCHY IN CONTROLLING AREA .................................................................... 19
19. DEFINE STANDARD HIERARCHY (TCODE KCH4)...................................................................................................... 19
20. DEFINE COST CENTER GROUPS (TCODE KSH2) ...................................................................................................... 20
21. CLASSIFY GL ACCOUNTS FOR DOCUMENT SPLITTING................................................................................................ 21
22. DEFINE ZERO BALANCE CLEARING ACCOUNT (TCODE GSP_KD) ................................................................................ 22
23. DEFINE DOCUMENT SPLITTING CHARACTERISTICS FOR GENERAL LEDGER ACCOUNTING ............................................... 22
22. ACTIVATE DOCUMENT SPLITTING.............................................................................................................................. 23
2. ACCOUNT RECEIVABLE & ACCOUNT PAYABLE – CUSTOMER VENDOR INTEGRATION
(BUSINESS PARTNER) ................................................................................................................................... 24

1. CREATE NUMBER RANGES FOR CUSTOMER ACCOUNTS (T CODE XDN1) ..................................................................... 24

2. ASSIGN NUMBER RANGES TO CUSTOMER ACCOUNT GROUPS ................................................................................. 25
3. CREATE NUMBER RANGES FOR VENDOR ACCOUNTS (TCODE XKN1) ......................................................................... 26
4. ASSIGN NUMBER RANGES TO VENDOR ACCOUNT GROUPS ..................................................................................... 27
5. DEFINE NUMBER RANGES IN BUSINESS PARTNER (TCODE BUCF) .............................................................................. 28
6. DEFINE GROUPINGS AND ASSIGN NUMBER RANGES .............................................................................................. 29
7. DEFINE NUMBER ASSIGNMENT FOR DIRECTION BP TO CUSTOMER .......................................................................... 30
8. DEFINE NUMBER ASSIGNMENT FOR DIRECTION BP TO VENDOR .............................................................................. 31
9. DEFINE ACCOUNTS FOR CASH DISCOUNT TAKEN (T CODE OBXU) .............................................................................. 32
10. DEFINE ALTERNATIVE RECONCILIATION ACCOUNT FOR VENDOR DOWN PAYMENTS (T CODE OBYR) ............................... 33
11. DEFINE ALTERNATIVE RECONCILIATION ACCOUNT FOR CUSTOMER DOWN PAYMENTS (T CODE OBXR) .... 34
12. DEFINE ACCOUNTS FOR CASH DISCOUNT GRANTED (T CODE OBXI) ............................................................ 35
13. VENDOR CREATION (TCODE BP) .......................................................................................................................... 36
14. CUSTOMER CREATION (TCODE BP) ...................................................................................................................... 38

3. BANK ACCOUNTING ............................................................................................................................. 40

1. CREATION OF BANK KEY (TCODE FI01) ................................................................................................................. 40
2. CREATE HOUSE BANK (FIORI APP) ....................................................................................................................... 41

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3. CREATE CHEQUE LOT (TCODE FCHI) ..................................................................................................................... 44

4. CREATION OF MANUAL CHECK (TCODE FCH5) ........................................................................................................ 45
5. DISPLAY CHECK REGISTER (TCODE FCHN) .............................................................................................................. 46
4. DOCUMENT SPLITTING ............................................................................................................................ 47
1. CLASSIFY GL ACCOUNTS FOR DOCUMENT SPLITTING ................................................................................ 48
2. DEFINE ZERO BALANCE CLEARING ACCOUNT (TCODE GSP_KD) ................................................................ 49
3. DEFINE DOCUMENT SPLITTING CHARACTERISTICS FOR GENERAL LEDGER ACCOUNTING ....................... 49
4. ACTIVATE DOCUMENT SPLITTING .............................................................................................................. 50
5. POSTING INVOICES WITH DOCUMENT SPLITTING (TCODE FB60) ................................................................................ 51
6. AUTOMATIC PAYMENT PROGRAM ................................................................................................... 53
1. ALL COMPANY CODES ...................................................................................................................................... 55
2. PAYING COMPANY CODES ................................................................................................................................. 56
3. PAYMENT METHODS IN COUNTRY ....................................................................................................................... 56
4. PAYMENT METHODS IN COMPANY CODE .............................................................................................................. 57
5. BANK DETERMINATION ..................................................................................................................................... 57
6. HOUSE BANKS ................................................................................................................................................. 58
7. AUTOMATIC PAYMENT RUN ( END USER ) ............................................................................................................. 59

8. PARK AND HOLD DOCUMENTS .......................................................................................................... 63

1. HOLD DOCUMENT : ......................................................................................................................................... 63
2. PARK DOCUMENT -.......................................................................................................................................... 65

9. WITHHOLDING TAX.............................................................................................................................. 67
1. CHECK WITHHOLDING TAX COUNTRIES/REGIONS ................................................................................................... 68
2. DEFINE WITHHOLDING TAX KEYS ....................................................................................................................... 69
3. DEFINE WITHHOLDING TAX TYPE FOR INVOICE POSTING ........................................................................................ 70
4. DEFINE WITHHOLDING TAX TYPE FOR PAYMENT POSTING ...................................................................................... 71
5. DEFINE WITHHOLDING TAX CODES ..................................................................................................................... 72
6. ASSIGN WITHHOLDING TAX TYPES TO COMPANY CODES ........................................................................................ 73
7. ACTIVATE EXTENDED WITHHOLDING TAX ............................................................................................................ 73
8. MAINTAIN WITHHOLDING TAX TYPES IN BP .......................................................................................................... 74
9. VENDOR INVOICE (TCODE FB60) ........................................................................................................................ 74

10. PAYMENT TERMS .............................................................................................................................. 75

TO MAINTAIN PAYMENT TERMS IN SAP - [Link] OBB8 ................................................................................................. 76
ASSIGN PAYMENT TERMS IN BP ...................................................................................................................................... 77

11. ASSET ACCOUNTING......................................................................................................................... 78

1. COPY REFERENCE CHART OF DEPRECIATION/ DEPRECIATION AREAS (COPY REFERENCE CHART OF DEPRECIATION)........... 78
2. ASSIGN CHART OF DEPRECIATION TO COMPANY CODE........................................................................................... 81
3. ASSIGN INPUT TAX INDICATOR FOR NON-TAXABLE ACQUISITIONS ............................................................................ 81
4. SPECIFY ACCOUNT DETERMINATION ................................................................................................................... 82
5. CREATE SCREEN LAYOUT RULES ......................................................................................................................... 82
6. DEFINE NUMBER RANGES INTERVALS ................................................................................................................. 83
7. DEFINE ASSET CLASSES ..................................................................................................................................... 83

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8. DEFINE TECHNICAL CLEARING ACCOUNT FOR INTEGRATED ASSET ACQUISITION .......................................................... 85

9. ACTIVATE ACCOUNT ASSIGNMENT OBJECTS ......................................................................................................... 86
10. SPECIFY ACCOUNT ASSIGNMENT TYPES FOR ACCOUNT ASSIGNMENT OBJECTS ........................................................... 87
11. ASSIGN GL ACCOUNTS (TCODE AO90) ................................................................................................................ 88
12. MAINTAIN DEPRECIATION KEY .......................................................................................................................... 90
13. DEFINE SCREEN LAYOUT FOR ASSET MASTER DATA ............................................................................................... 91
14. DETERMINE DEPRECIATION AREAS IN THE ASSET CLASS (TCODE OAYZ) ..................................................................... 93
15. DEFINE OFFSETTING ACCOUNT FOR LEGACY DATA TRANSFER .................................................................................. 94
16. DEFINE TRANSFER DATE AND ADDITIONAL PARAMETERS (TCODE FAA_CMP) ............................................................. 94
17. ASSETS BALANCE CARRY FORWARD (TCODE FAGLGVTR) .......................................................................................... 95
18. ASSET CREATION ( TCODE AS01 ) ....................................................................................................................... 96
19. ASSET ACQUISITION WITH VENDOR (TCODE F-90).................................................................................................. 99
20. ASSET ACQUISITION THROUGH AUTOMATIC OFFSETTING ENTRY ( TCODE ABZON) ...................................................... 102
21. ASSET TRANSFER WITHIN COMPANY CODE (TCODE ABUMN) .................................................................................. 104
12. FINANCIAL STATEMENT VERSION (TCODE OB58) ................................................................... 106
1. CREATION OF FINANCIAL STATEMENT VERISON (OB58) ........................................................................................ 106
2. EXTRACT FINANCIAL STATEMENTS TCODE F.01 ................................................................................................... 107

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1. ENTERPRISE STRUCTURE

1. CREATION OF COMPANY CODE – TCODE OX02

Company code: Smallest organizational unit of external accounting for which a complete, self-
contained set of accounts can be created. This includes the entry of all transactions that must be
posted and the creation of all items for legal individual financial statements, such as the balance
sheet and the profit and loss statement.

The company code is an organizational unit used in accounting. It is used to structure the
business organization from a financial accounting perspective. The company code is an
organizational unit used in accounting.

Path: SPRO > Enterprise Structure > Definition > Financial Accounting > Edit,
Copy, Delete, Check Company Code > Edit Company Code Data

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Formatted: Normal, No bullets or numbering

Formatted: Font: (Default) Times New Roman, Bold

2. CREATION OF CHART OF ACCOUNTS- T CODE OB13

Chart of Accounts (CoA) is a structured list of all the general ledger (G/L) accounts
used by an organization. It serves as a framework for recording financial transactions
and organizing financial reporting. The CoA defines the structure and numbering scheme for
accounts and helps in maintaining consistent and accurate financial records.

Path: SPRO > Financial Accounting > General Ledger Accounting > Master
Data > G/L Accounts > Preparations > Edit Chart of Accounts List

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3. ASSIGN COMPANY CODE TO CHART OF ACCOUNTS (T CODE OB62)

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4. DEFINE ACCOUNT GROUPS (T CODE OBD4)

Account Group: This is a classification for different types of G/L accounts. Common
account groups might include assets, liabilities, equity, income, and expenses.

Account Number: Each account is assigned a unique number within the account group.

For example:
Liabilities: 100000 - 199999
Assets: 200000 - 299999
Income: 300000 – 399999
Expenses: 400000 – 499999

SPRO > Financial Accounting > General Ledger Accounting > Master Data > G/L
Accounts > Preparations > Define Account Group

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5. DEFINE RETAINED EARNING ACCOUNT ( T CODE OB53 )

Retained Earnings Account is related to tracking the cumulative profits earned by a company
over time. It's also commonly referred to as the "Retained Earnings Reserve" or simply
"Retained Earnings." This account is used to capture the net profits or losses accumulated by a
company since its inception, after accounting for dividends and other distributions to
shareholders.
In the context of SAP's Financial Accounting (FI) module, you would typically find the
Retained Earnings Account under the Equity section of the balance sheet. This account is
important for maintaining the continuity of the company's financial history and is carried forward
from one accounting period to the next.

SPRO > Financial Accounting > General Ledger Accounting > Master Data > G/L
Accounts > Preparations > Define Retained Earnings Account

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6. MAINTAIN TOLERANCE GROUP FOR G/L ACCOUNTS (T CODE OBA0)

Tolerance Group" for G/L (General Ledger) accounts is a mechanism used to control the
maximum permissible amounts for posting transactions to specific G/L accounts within the
framework of the organization's financial control policies. Tolerance groups help ensure that
financial transactions fall within predefined limits and prevent unauthorized or erroneous
postings that might have a significant impact on financial statements

SPRO > Financial Accounting > General Ledger Accounting > Business Transactions

> Open Item Clearing > Clearing Differences > Define Tolerance Groups for G/L

Accounts

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7. DEFINE FIELD STATUS VARIANT (TCODE OBC4)

Field Status Variant is used to define the fields which are used for input like cost

center, profit center, plant, etc., which are entry fields, and hidden fields. Field

status Variant is a tool which is provided by SAP to assign the same set of properties

to more than one object.

SPRO > Financial Accounting > Financial Accounting Global Settings > Ledgers >

Fields > Define Field Status Variants

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8. ASSIGN COMPANY CODE TO FIELD STATUS VARIANT (TCODE OBC5)

This is mandatory to assign the Field Status Variant to Company Code created in the above step.

SPRO > Financial Accounting > Financial Accounting Global Settings > Ledgers > Fields >
Assign Company Code to Field Status Variants

9. MAINTAIN FISCAL YEAR VARIANT (TCODE OB29)

An accounting period is also known as the fiscal year which usually runs for 12 months (each
month = one period) with your company publishing a financial statement for each fiscal year as
well as taking stock inventory. Each period within a fiscal year is known as a posting period. When
you post transactions in the SAP system each transaction is assigned to a particular posting period
(made up of month and year) and the transaction figures are updated for that period. SAP identifies
documents using document type, fiscal year and posting period. It uses Fiscal Year Variants (FYV)
to manage fiscal years and posting periods variants to open or close posting periods

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Ø SPRO> Financial Accounting> Financial Accounting Global Setting> Ledgers>

Fiscal Year and Posting Periods> Maintain Fiscal Year Variant

10. ASSIGN COMPANY CODE TO FISCAL YEAR VARIANT (TCODE OB37)

SPRO > Financial Accounting > Financial Accounting Global Settings > Ledgers > Fiscal Year and
Posting Periods > Assign Company Code to a Fiscal Year Variant

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11. DEFINE VARIANTS FOR OPEN POSTING PERIODS (TCODE OBBO)

We have already defined fiscal year variant and assign it to our company code; it is time to
define Posting period variant. Posting period variant is used to control which accounting period
is open for posting. This is an important control tool for every organization which has monthly
closing. Usually, every posting period is assigned to one company code, but you could assign
one posting variant to many company codes. In this way you will control all the entities in once
which has pros and cons. Despite the strict dates you agree with other departments in your
organization there will always be a case where for some operation, period should be open. So
you should very carefully consider whether you are going to define one posting period for
several company codes or you will have one for each

SPRO > Financial Accounting > Financial Accounting Global Settings > Ledgers > Fiscal
Year and Posting Periods > Posting Periods > Define Variants for Open Posting Periods

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12. ASSIGN POSTING PERIOD VARIANT TO COMPANY CODE (TCODE OBBP)

SPRO > Financial Accounting > Financial Accounting Global Settings > Ledgers > Fiscal
Year and Posting Periods > Posting Periods > Assign Variants to Company Code

13. OPEN AND CLOSE POSTING PERIODS (TCODE OB52)

SPRO > Financial Accounting > Financial Accounting Global Settings > Ledgers > Fiscal
Year and Posting Periods > Posting Periods > Open and Close Posting Periods

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14. MAINTAIN CONTROLLING AREA (TCODE OX06)

SPRO > Enterprise Structure > Definition > Controlling > Maintain Controlling Area

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15. DEFINE ACCOUNTING PRINCIPAL

SPRO > Financial Accounting > Financial Accounting Global Settings > Ledgers > Parallel
Accounting > Define Accounting Principles

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16. MAINTAIN VERSION (FOR CONTROLLING)

SPRO > Controlling > General Controlling > Organization > Maintain Versions

17. DEFINE LEDGER FOR CO VERSION

SPRO > Financial Accounting > Financial Accounting Global Settings > Ledgers >
Integration of Controlling with Financial Accounting > Define Ledger for CO Version

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18. DEFINE PROFIT CENTER STANDARD HIERARCHY IN CONTROLLING AREA

SPRO > Financial Accounting > General Ledger Accounting > Master Data > Profit
Center > Define Profit Center Standard Hierarchy in Controlling Area

19. DEFINE STANDARD HIERARCHY (TCODE KCH4)

SPRO > Financial Accounting > General Ledger Accounting > Master Data > Profit
Center > Define Standard Hierarchy

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20. DEFINE COST CENTER GROUPS (TCODE KSH2)

SPRO > Controlling > Cost Center Accounting > Master Data > Cost Centers > Define
Cost Center Groups

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21. CLASSIFY GL ACCOUNTS FOR DOCUMENT SPLITTING

SPRO > Financial Accounting > General Ledger Accounting > Business Transactions >
Document Splitting >Classify G/L Accounts for Document Splitting

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22. DEFINE ZERO BALANCE CLEARING ACCOUNT (TCODE GSP_KD)

SPRO > Financial Accounting > General Ledger Accounting > Business Transactions >
Document Splitting >Define Zero-Balance Clearing Account

23. DEFINE DOCUMENT SPLITTING CHARACTERISTICS FOR GENERAL LEDGER ACCOUNTING

SPRO > Financial Accounting > General Ledger Accounting > Business Transactions >
Document Splitting >Define Document Splitting Characteristics for General Ledger
Accounting

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22. ACTIVATE DOCUMENT SPLITTING

SPRO > Financial Accounting > General Ledger Accounting > Business Transactions >
Document Splitting >Activate Document Splitting

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2. ACCOUNT RECEIVABLE & ACCOUNT PAYABLE –

CUSTOMER VENDOR INTEGRATION (BUSINESS
PARTNER)

1. CREATE NUMBER RANGES FOR CUSTOMER ACCOUNTS (T CODE XDN1)

SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Customer
Accounts > Master Data > Preparations for Creating Customer Master Data > Create
Number Ranges for Customer Accounts

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2. ASSIGN NUMBER RANGES TO CUSTOMER ACCOUNT GROUPS

SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Customer
Accounts > Master Data > Preparations for Creating Customer Master Data > Assign
Number Ranges to Customer Account Groups

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3. CREATE NUMBER RANGES FOR VENDOR ACCOUNTS (TCODE XKN1)

SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Vendor
Accounts > Master Data> Preparations for Creating Vendor Master Data > Create
Number Ranges for Vendor Accounts.

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4. ASSIGN NUMBER RANGES TO VENDOR ACCOUNT GROUPS

SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Vendor
Accounts > Master Data > Preparations for Creating Vendor Master Data > Assign
Number Ranges to Vendor Account Groups

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5. DEFINE NUMBER RANGES IN BUSINESS PARTNER (TCODE BUCF)

SPRO > Cross-Application Components > SAP Business Partner > Business Partner >
Basic Settings > Number Ranges and Groupings > Define Number Ranges

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6. DEFINE GROUPINGS AND ASSIGN NUMBER RANGES

SPRO > Cross-Application Components > SAP Business Partner > Business Partner >
Basic Settings > Number Ranges and Groupings > Define Groupings and Assign Number
Ranges

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7. DEFINE NUMBER ASSIGNMENT FOR DIRECTION BP TO CUSTOMER

SPRO > Cross-Application Components > Master Data Synchronization >

Customer/Vendor Integration >Business Partner Settings > Settings for Customer
Integration > Field Assignment for Customer Integration >Assign Keys > Define Number
Assignment for Direction BP to Customer

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8. DEFINE NUMBER ASSIGNMENT FOR DIRECTION BP TO VENDOR

SPRO > Cross-Application Components > Master Data Synchronization >

Customer/Vendor Integration > Business Partner Settings > Settings for Vendor
Integration > Field Assignment for Vendor Integration >Assign Keys > Define Number
Assignment for Direction BP to Vendor

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9. DEFINE ACCOUNTS FOR CASH DISCOUNT TAKEN (T CODE OBXU)

SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Business
Transactions >Outgoing Payments > Outgoing Payments Global Settings > Define
Accounts for Cash Discount Taken

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10. DEFINE ALTERNATIVE RECONCILIATION ACCOUNT FOR VENDOR DOWN PAYMENTS

(T CODE OBYR)

SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Business
Transactions > Down Payment Made > Define Alternative Reconciliation Account for
Down Payments

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11. DEFINE ALTERNATIVE RECONCILIATION ACCOUNT FOR CUSTOMER DOWN

PAYMENTS (T CODE OBXR)

SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Business
Transactions > Down Payment Received > Define Alternative Reconciliation Account for
Customer Down Payments

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12. DEFINE ACCOUNTS FOR CASH DISCOUNT GRANTED (T CODE OBXI)

SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Business
Transactions >Outgoing Payments > Outgoing Payments Global Settings > Define Accounts for
Cash Discount Taken

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13. VENDOR CREATION (TCODE BP)

Change the BP role to Supplier([Link]) and click on Company code button

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Fill in the required information and click save

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14. CUSTOMER CREATION (TCODE BP)

Change the BP role to FI Customer and click on Company code button

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Fill in the required information and click save

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3. BANK ACCOUNTING

1. CREATION OF BANK KEY (TCODE FI01)

SAP Menu > Accounting > Financial Accounting > Banks > Master Data > Bank Master
Record > Create

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2. CREATE HOUSE BANK (FIORI APP)

Enter the required fields and save. Example:

Sr. Field Example

1 Account Number Any number to Identify

2 Account Description Description

3 Bank Country Country of Bank

4 Bank Key Created Previously

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5 Account Currency Currency

6 Company Code Enter Company Code

7 Account Type Operative/ Non-Operative

8 Account Holder Name of the account holder

9 Opening Date Date of Opening

Click on Connectivity Path and

• Select ID “Central System”

• Give House Bank (House Bank ID)

• Enter Main Bank GL Account

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Click Save

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3. CREATE CHEQUE LOT (TCODE FCHI)

Give company code, house bank, account ID.

Select change (Shift+F5)

Save it.

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4. CREATION OF MANUAL CHECK (TCODE FCH5)

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5. DISPLAY CHECK REGISTER (TCODE FCHN)

Give company code, house bank, account ID

Click on Execute Button

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4. DOCUMENT SPLITTING

Document splitting in SAP S/4 HANA allows you to display documents using a differentiated
representation. In the representation, line items are split according to selected dimensions. In this
way, you can draw up complete financial statements for the selected dimensions at any time.
Document splitting is one of the Key functionalities enabled in SAP New GL to help deliver
segmented financial statements

There are Three Types of Document Splitting :

1. Active Document Splitting

2. Passive Document Splitting

3. Zero Balance Clearing Account

Necessary steps to configure document splitting are as follows:

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1. CLASSIFY GL ACCOUNTS FOR DOCUMENT SPLITTING

SPRO > Financial Accounting > General Ledger Accounting > Business Transactions >
Document Splitting >Classify G/L Accounts for Document Splitting

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2. DEFINE ZERO BALANCE CLEARING ACCOUNT (TCODE GSP_KD)

SPRO > Financial Accounting > General Ledger Accounting > Business Transactions >
Document Splitting >Define Zero-Balance Clearing Account

3. DEFINE DOCUMENT SPLITTING CHARACTERISTICS FOR GENERAL LEDGER

ACCOUNTING

SPRO > Financial Accounting > General Ledger Accounting > Business Transactions >
Document Splitting >Define Document Splitting Characteristics for General Ledger
Accounting

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4. ACTIVATE DOCUMENT SPLITTING

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5. POSTING INVOICES WITH DOCUMENT SPLITTING (TCODE FB60)

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6. AUTOMATIC PAYMENT PROGRAM

Automatic Payment Program (APP) is functionality of posting accounts payable like payment to
a vendor based on vendor invoices automatically. APP is used to find out due/overdue invoices
and to process a list of customer and vendor invoices to make payments in one go.

The Transaction code F110 is for managing automatic payments.

Automatic Payment Program is divided into 4 steps (4 P's) :

• Parameter
• Proposal
• Payment
• Print

Necessary Configuration of APP are as follows:

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1. ALL COMPANY CODES

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2. PAYING COMPANY CODES

3. PAYMENT METHODS IN COUNTRY

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4. PAYMENT METHODS IN COMPANY CODE

5. BANK DETERMINATION

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6. HOUSE BANKS

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7. AUTOMATIC PAYMENT RUN ( END USER )

Enter Run Date & Identification code

Run Date: Enter the date for transaction to run

Identification: Enter a Five-character alphanumeric code that will be used to identify the
payment program

STEP 1 - PARAMETER

• What is to be paid – Docs. Entered Up to

• What payment methods will be used – Payment Methods
• When will the payments be made – Posting Date
• Which company codes will be considered – Company Codes
• How are they going to be paid – Payment Method Sequence decides the Priority of the
Payment Method

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STEP 2 : PROPOSAL

In this step, the system performs a proposal run to identify the invoices that meet the selection
criteria defined by the user. The criteria may include parameters such as due dates, company
codes, vendor groups, or other factors.

During the proposal run, the system proposes a list of payments that can be made based on the
specified criteria. Users can review this proposal before proceeding to the next step.

• After the Parameters are Entered we execute the Program by clicking the proposal
button in Application Toolbar. The APP performs a proposal run to identify the invoices
that meet the specified selection criteria. During this run, the system proposes a list of
payments that can be made based on the defined parameters.
• The goal is to ensure that the payment proposal accurately reflects the organization's
payment requirements before the actual payment run.

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STEP 3 : PAYMENT RUN

• Once the payment proposal has been reviewed and finalized, the system executes the
payment run. During this step, payment documents are generated, accounting entries
are posted, and the payment file is prepared for transmission to the bank.

• The payment run involves the creation of payment media (checks, electronic fund
transfers, etc.) and the posting of accounting entries to reflect the outgoing payments in
the financial system.

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8. PARK AND HOLD DOCUMENTS

1. HOLD DOCUMENT :

Hold Document refers to a Temporarily saved document for incomplete data or contain valid
information but are not ready for posting, kept on hold for preventing further processing or
posting of that document.

• Characteristics of Hold Document -

• Hold documents are temporarily saved.
• They do not update records.
• They do not generate a document number.
• They can be deleted.
• They cannot be used in evaluations

>> To Retrieve, modify and Post Held Document

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2. PARK DOCUMENT -

Park Document is a feature that allows users to temporarily save incomplete or unapproved
financial documents without posting them to the general ledger. This functionality is useful in
situations where validation or approval is required before finalizing and posting a document.

Characteristics of Park Document -

Parked documents are stored temporarily.

They do generate a document number.

At least one line item of the sending company code must exist to Park document

It can be reviewed, modified , approved or rejected and deleted before posting.

SAP uses specific document type for parked documents.

Park document is mainly requires higher authority check.

Path >> SAP Easy Access > Accounting > FI > G/L > Document >

Park document with FV60

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9. WITHHOLDING TAX

What is Withholding Tax?

Withholding tax, also known as retention tax or source tax, is a taxation system where a payer
deducts a certain amount of tax from the payments it makes to a payee and remits that amount
directly to the government on behalf of the payee. This form of taxation is often applied to
income such as wages, dividends, interest, and other payments. The purpose of withholding tax
is to ensure the prepayment of taxes, promote tax compliance, and facilitate efficient tax
collection by taxing authorities. The amount withheld is usually a percentage of the total
payment and is credited against the recipient's final tax liability. Withholding tax is prevalent in
various countries as a means of collecting income taxes at the source.

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How to configure Withholding Tax Configuration in SAP S/4 HANA ?

1. CHECK WITHHOLDING TAX COUNTRIES/REGIONS

Withholding Tax Countries/Regions" refers to those jurisdictions or geographical areas where

the concept of withholding tax is implemented as part of the tax system.

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2. DEFINE WITHHOLDING TAX KEYS

Withholding Tax Key is a unique identifier assigned to different tax types or rates within the
withholding tax functionality. It serves as a link between specific tax types and the
corresponding tax codes.

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3. DEFINE WITHHOLDING TAX TYPE FOR INVOICE POSTING

Withholding Tax Type for Invoice Posting" refers to a specific tax type associated with the
deduction of taxes at the time of posting an invoice. It indicates the category or type of
withholding tax applicable to the transaction.

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4. DEFINE WITHHOLDING TAX TYPE FOR PAYMENT POSTING

Here the withholding tax type is assigned for the payment purpose and the same will not get
triggered at the time of Invoice Posting. The withholding information is to be provided while
posting for such document for Withholding Tax payment.

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5. DEFINE WITHHOLDING TAX CODES

Withholding Tax Codes are unique identifiers assigned to specific types of

withholding taxes. These codes are linked to various tax rates and regulations
for different tax authorities.

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6. ASSIGN WITHHOLDING TAX TYPES TO COMPANY CODES

Assigning withholding tax types to company codes in SAP involves linking

specific types of withholding taxes to individual company codes within the
system. This configuration ensures that the correct withholding tax rules and
rates are applied based on the company's location and legal requirements.

7. ACTIVATE EXTENDED WITHHOLDING TAX

This activation involves configuring the system to support more complex withholding tax
scenarios, such as multiple tax codes and rates, exemptions, and specific business rules. By
activating extended withholding tax, organizations can meet the requirements of diverse tax
regulations and ensure accurate withholding tax calculations and reporting in SAP systems.

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8. MAINTAIN WITHHOLDING TAX TYPES IN BP

9. VENDOR INVOICE (TCODE FB60)

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10. PAYMENT TERMS

What is Payment Terms in SAP ?

Payment Terms are the conditions agreed upon between a company and its business partners
(Customer & Vendor) regarding the payment of invoices. Payment terms is defined 4 digit code
in system. They define the period within which payment is expected to be made and any
discounts that may apply for early payment. Once the system defines them, you can assign
these terms to the vendor master or customer master.

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TO MAINTAIN PAYMENT TERMS IN SAP - [Link] OBB8

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ASSIGN PAYMENT TERMS IN BP

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11. ASSET ACCOUNTING

Chart of Depreciation

Definition:

The account group is a classifying feature within customer master

records. The account group determines:

• in which number range the customer account number should be;

• whether the number is assigned by the user or by the system;
• which specifications are necessary or possible in the master record.

1. COPY REFERENCE CHART OF DEPRECIATION/ DEPRECIATION AREAS (COPY

REFERENCE CHART OF DEPRECIATION)

SPRO > Financial Accounting > Asset Accounting > Organizational Structures > Copy Reference
Chart of Depreciation/Depreciation Areas > Copy Reference Chart of Depreciation

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2. ASSIGN CHART OF DEPRECIATION TO COMPANY CODE

SPRO > Financial Accounting > Asset Accounting > Organizational Structures > Assign Chart of
Depreciation to Company Code

3. ASSIGN INPUT TAX INDICATOR FOR NON-TAXABLE ACQUISITIONS

SPRO > Financial Accounting > Asset Accounting > Integration with General Ledger Accounting
> Assign Input Tax Indicator for Non-Taxable Acquisitions

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4. SPECIFY ACCOUNT DETERMINATION

SPRO > Financial Accounting > Asset Accounting > Organizational Structures > Asset Classes >
Specify Account Determination

5. CREATE SCREEN LAYOUT RULES

SPRO > Financial Accounting > Asset Accounting > Organizational Structures > Asset Classes >
Create Screen Layout Rules

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6. DEFINE NUMBER RANGES INTERVALS

SPRO > Financial Accounting > Asset Accounting > Organizational Structures > Asset Classes >
Define Number Range Interval

7. DEFINE ASSET CLASSES

SPRO > Financial Accounting > Asset Accounting > Organizational Structures > Asset Classes >
Define Asset Classes

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8. DEFINE TECHNICAL CLEARING ACCOUNT FOR INTEGRATED ASSET

ACQUISITION

SPRO > Financial Accounting > Asset Accounting > Integration with General Ledger Accounting
> Technical Clearing Account for Integrated Asset Acquisition > Define Technical Clearing
Account for Integrated Asset Acquisition

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9. ACTIVATE ACCOUNT ASSIGNMENT OBJECTS

SPRO > Financial Accounting > Asset Accounting > Integration with General Ledger Accounting
> Additional Account Assignment Objects > Activate Account Assignment Objects

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10. SPECIFY ACCOUNT ASSIGNMENT TYPES FOR ACCOUNT ASSIGNMENT

OBJECTS

SPRO > Financial Accounting > Asset Accounting > Integration with General Ledger Accounting
> Additional Account Assignment Objects > Specify Account Assignment Types for Account
Assignment Objects

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11. ASSIGN GL ACCOUNTS (TCODE AO90)

SPRO > Financial Accounting > Asset Accounting > Integration with General Ledger Accounting
> Post Depreciation to General Ledger Accounting > Assign G/L Accounts

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12. MAINTAIN DEPRECIATION KEY

SPRO > Financial Accounting > Asset Accounting > Depreciation > Valuation Methods >
Depreciation Key >Maintain Depreciation Key

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13. DEFINE SCREEN LAYOUT FOR ASSET MASTER DATA

SPRO > Financial Accounting > Asset Accounting > Master Data > Screen Layout > Define
Screen Layout for Asset Master Data

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14. DETERMINE DEPRECIATION AREAS IN THE ASSET CLASS (TCODE OAYZ)

SPRO > Financial Accounting > Asset Accounting > General Valuation > Determine
Depreciation Areas in the Asset Class

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15. DEFINE OFFSETTING ACCOUNT FOR LEGACY DATA TRANSFER

SPRO > Financial Accounting > Asset Accounting > Asset Data Transfer > Parameters for Data
Transfer > Define Offsetting Account for Legacy Data Transfer

16. DEFINE TRANSFER DATE AND ADDITIONAL PARAMETERS (TCODE FAA_CMP)

SPRO > Financial Accounting > Asset Accounting > Asset Data Transfer > Parameters for Data
Transfer > Define Transfer Date and Additional Parameters

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17. ASSETS BALANCE CARRY FORWARD (TCODE FAGLGVTR)

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18. ASSET CREATION ( TCODE AS01 )

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19. ASSET ACQUISITION WITH VENDOR (TCODE F-90)

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20. ASSET ACQUISITION THROUGH AUTOMATIC OFFSETTING ENTRY ( TCODE

ABZON)

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21. ASSET TRANSFER WITHIN COMPANY CODE (TCODE ABUMN)

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12. FINANCIAL STATEMENT VERSION (TCODE OB58)

1. CREATION OF FINANCIAL STATEMENT VERISON (OB58)

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2. EXTRACT FINANCIAL STATEMENTS TCODE F.01

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