Introduction of ERP:

 ERP is Enterprise Resource Planning.

 ERP automates the tasks involved in performing a business process.
 ERP help them to implement resource planning by integrated all the processes needed
to run their companies with a single system.
 ERP enables planning of all the resources (Manpower, Money, Material, Machine,
Marketing, and Method) in an organization.
 ERP provides an integrated and continuously updated view of core business processes
using common databases maintained by a database management system. ERP systems
track business resources—cash, raw materials, production capacity—and the status of
business commitments: orders, purchase orders, and payroll. The applications that
make up the system share data across various departments (manufacturing,
purchasing, sales, accounting, etc.)

 There are three main types of ERP systems that function with different deployment
model options. The most common types of ERP systems include,
o CLOUD ERP
o ON-PREMISE ERP
o HYBRID ERP.

1
SOFTWARES ARE USING ERP:

Enterprise resource planning (ERP) systems are software packages that help
businesses manage their processes. Some popular ERP systems include:

 Oracle NetSuite ERP for the best all-around ERP software

 Odoo ERP for custom business processes
 SAP Business One for growing companies
 ERP Next for the best value ERP
 Microsoft Dynamics 365 for dynamic use cases
 Acumatica Cloud ERP for the best user experience
 Katana for inventory management
 Sage Intacct for accounting

COMPONENTS OF ERP:

The two key “components” of an ERP system are the specialized software
applications and the centralized database. The specialized software applications, also known
as ERP components or modules, are designed to support and integrate various business
function

2
Introduction of SAP:

 SAP Stands for Systems Applications and Products in Data Processing.

Found in the year 1972 it is German software. Renamed in 1977.Before 1977:
Systems Analysis and Program Development.
 SAP is one of the world’s leading producers of software for the management of
business process.
 SAP is a leading ERP Package.
 SAP enables an enterprise to undertake its day to day and long term activities in an
effective and efficient way.
 SAP system comprises of a number of fully integrated modules, which covers
virtually every aspect of the business.

SAP Application Modules:

 Financial accounting Controlling (FICO)
 Materials management (MM)
 Sales and Distribution (SD)
 Production Planning (PP)
 Quality management (QM)
 Plant maintenance (PM) & Customer Service (CS)
 Project system (PS)
 Human resources (HR)

Since all the modules are integrated data gets automatically updated with SAP

3
Consulted type:
1. Functional Consultant.
2. Technical consultant.
3. Techno functional consultant.
4. End User

i. Functional Consultant:
Functional Consultant in an End To End Implementation Project. Functional
consultant is expected to have knowledge about the current business process. His
main task will be to customize the respective business processes.

ii. Technical Consultant:

The main job of the support consultant is to provide assistance to the
customer or the organization where SAP is already implemented primarily responsible for
solving the problem of end users. When a problem arises the support consultant has to
diagnose, analyse and solve the issue.

iii. Techno Functional Consultant:

The role involves translating functional and design specification into technical
concepts, interactions with the clients & effective co-ordinate for the development.
People with excellent communication skills are preferred.

iv. End User:

End user will be using the ERP Software implemented in the Organization.
His role is restricted to data entry. He undertakes activities like passing the JV’s,
entering the data related to invoices etc.

Introduction of FICO:
FICO Module is needed to generate P&L A/C and Balance sheet of a firm. In order to
generate the financial statements transactions are recorded in the general ledger. And data
flow in Controlling will be in financial statement.

4
Generation of SAP:

 SAP R/1 is a system with one-tier architecture. “R stands for real-time data
processing”. Further, in one-tier architecture, SAP installed all these three layers in
one server.
 SAP R/3 is just one of the main items of SAP, where R stands for Real-Time as well
as the number 3 connects to 3 tier application design (Information base, Application
Web server, and Client)
 ERP Central Components (ECC) – In 2004, SAP launched a new version of R/3
software with a revised architecture called SAP ECC (SAP ERP Central Component).
It is SAP’s ERP (Enterprise Resource Planning) solution. It is also one of the most
robust and successful ERP software.
 SAP S/4HANA is an abbreviation of SAP Business Suite 4 SAP HANA, an enterprise
resource planning (ERP) software package. Organizations use SAP S/4HANA to
integrate and manage business functions – such as finance, human resources,
procurement, sales, manufacturing and service – in real time.

SOME TYPES OF SAP PROJECTS INCLUDES:

5
 o Implementation or development project
o Support and maintenance project
o Roll out project
o Upgrade or migration project
o Expansion project

SAP Architecture:

This is a project of Hindustan Unilever Limited:

Hindustan Unilever Limited (HUL) is a British-owned Indian Final good company

headquartered in Mumbai. It is a subsidiary of the British company Unilever. HUL was
established in 1931 as Hindustan Vanaspati Manufacturing Co. Following a merger of
constituent groups in 1956, it was renamed Hindustan Lever Limited. The company was
renamed again in June 2007 as Hindustan Unilever Limited. Its products include foods,
beverages, cleaning agents, personal care products, water purifiers and other fast-
moving consumer goods (FMCGs).

6
 ENTERPRISE STRUCTURE
It represents a group or an organizational unit of a company. One organisational unit
is linked with another organisational unit of a company. This relationship is called Enterprise
Structure or Organisational structure.

 Define Company
 Define Company Code
 Define Business Area
 Define Functional Area
 Define Credit Controlling Area
 Assigning all above to Company Code

DEFINE COMPANY (OX15):

 SPRO > SAP Reference IMG > Enterprise Structure > Definition > Financial
Accounting > Define Company.

7
 Steps:
Click ‘New Entries’
1. Enter 4 Digit Code (Minimum)
2. Enter name of the Company
3. Fill the Address
4. Enter Country Code
5. Enter language
6. Enter Currency
7. SAVE the settings

* To Save Create Request then type Short Description (Hindustan Unilever ltd)

* Then click own request select our

company and Save it (Ctrl+ S).

EDIT COMPANY CODE (OX02):

8
 Every separate legal entity or a limited liability company or a private limited company
is a company code. A company code is mandatory. In every country it is legally required to
provide the financial statements to the government. Hence, a company code is created. A
group can have “n” number of companies.

Path: SPRO > SAP Reference IMG > Enterprise Structure > Definition > Financial
Accounting > Edit, Copy, Delete, Check Company Code.

* Double Click on Edit Company Code Data

Steps:

Click ‘New Entries’

1. Enter 4 Digit Code

2. Enter Name of the Company Code

3. Enter the located City

4. Enter Country Code

5. Enter Currency

6. Enter Language

7. SAVE the settings

8. Enter the Details

9. Press ‘Enter’

10.SAVE

ASSIGN COMPANY CODE TO COMPANY (OX16):

9
Path: SPRO > SAP Reference IMG > Enterprise Structure > Assignment > Financial
Accounting > Assign Company Code to Company.

Steps:

1. Click ‘Position’

2. Enter Company Code

3. Enter Company

4. SAVE

DEFINE CREDIT CONTROL (OB45):

Path: SPRO > SAP Reference IMG > Enterprise Structure > Definition > Financial
Accounting > Define Credit Control Area.

Steps:

10
 Click ‘New Entries’

1. Enter 4 Digit Code

2. Enter 000012 & V3 in Standard

3. Enter Credit Limit

4. SAVE the settings

ASSIGN COMPANY CODE TO CREDIT CONTROL AREA (OB38):

Path: SPRO > SAP Reference IMG > Enterprise Structure > Assignment > Financial
Accounting > Assign Company Code to Credit Control Area

Steps:

1. Click ‘Position’

2. Enter Co. Code

3. Enter Cr Ctrl Area

4. SAVE the settings

DEFINE BUSINESS AREA (OX03):

11
Path: SPRO > SAP Reference IMG > Enterprise Structure > Definition > Financial
Accounting > Define Business Area

Steps:

Click ‘New Entries’

1. Enter 4 Digit Code

2. Enter Name of the Business Area

3. SAVE the settings

MAINTAIN CONSOLIDATION BUSINESS AREA (OCC1):

Path: SPRO > SAP Reference IMG >

Enterprise Structure > Definition > Financial Accounting > Maintain Consolidation Business
Area

Steps:

Click ‘New Entries’

12
 1. Enter 4 Digit Code

2. Enter Name of the Functional Area

3. SAVE the settings

ASSIGN COMPANY CODE TO CREDIT CONTROL AREA (OB38):

Path: SPRO > SAP Reference IMG > Enterprise Structure > Assignment > Financial
Accounting > Assign Company Code to Credit Control Area

Step:

1. Click ‘Position’
2. Enter Business Area Code
3. Assign Consolidation Business
Area to business area and Save the
settings

FINANCIAL ACCOUNTING GLOBAL SETTINGS

 Define Fiscal Year

 Define Posting Periods

 Define Field Status Variant

 Define Tolerance group for Users

 Define Document Types and Assign Number ranges

 Define Posting Keys

 Assigning all above to Company Code

13
A fiscal year should normally consists of 12 regular periods and maximum of 4 special
periods. This periods are called as virtual periods.
Special Periods:
In SAP we can additionally maintain Four Special periods (maximum) to meet year-
end closing activities of the Business. Special periods will be identified with 13 to 16 periods.
Conversion of calendar periods to non-calendar periods:
Calendar No. of Days SAP FY SAP FY SAP FY
month Periods April – Periods Oct – Periods July –
March Sept June
January 31 10 4 7
February 28 11 5 8
March 31 12 6 9
April 30 1 7 10
May 31 2 8 11
June 30 3 9 12
July 31 4 10 1
August 31 5 11 2
September 30 6 12 3
October 31 7 1 4
November 30 8 2 5
December 31 9 3 6
Year Shift: +1 for Previous Periods, 0 for Current Period, -1 for Future Periods
In SAP the system will not take 2 years as financial year. Then we will take which year has
maximum months has financial year.

Standard fiscal year Variants are

 K4 = CALENDAR YEAR
 V3 = April to March
 V9 = October TO September
 V6 = July to June
 WK = Calendar Weeks

14
MAINTAIN FISCAL YEAR (OB29):

Path: SPRO > SAP Reference IMG > Financial accounting > Financial Accounting Global
Settings > Fiscal Year > Maintain Fiscal Year Variant

* Click New Entries, Select ‘V3’ Click ‘Copy as’ Change ‘V3’ as your wish ‘HU’ and SAVE
the settings then Click ‘Copy all’ Press ‘Enter’ save it again.

* Left side you can see period folder double click on it.

* Click New Entries and fill the details then save it (Ctrl + S)

15
* Left you can see period text folder double tap on it then click new entries, fill the details
and save on it (Ctrl + S)

ASSIGN COMPANY CODE TO A FISCAL YEAR VARIANT (OB37):

Path: SPRO > SAP Reference IMG > Financial accounting > Financial Accounting Global
Settings > Fiscal Year > Assign Company Code to A Fiscal Year Variant

Steps:

1. Click ‘Position’

2. Enter Co. Code

3. Enter FYV

4. SAVE the settings

16
DEFINE VARIANTS FOR OPEN POSTING PERIODS (OBBO):

Path: SPRO > SAP Reference IMG > Financial accounting > Financial Accounting Global
Settings > Document > Posting Periods > Define Variants for Open Posting Periods

Steps:

Click ‘New Entries’

1. Enter 4 digit code

2. Enter Variant Name

3. SAVE the settings

ASSIGN VARIANT TO COMPANY CODE (OBBP):

Path: SPRO > SAP Reference IMG > Financial accounting > Financial Accounting Global
Settings > Document > Posting Periods > Assign Variant to Company Code

Steps:

1. Click ‘Position’

2. Enter Co. Code

3. Enter Variant Code

4. SAVE the settings

17
Posting period variant:
Posting period variants are used to have a control on periods to be open and close in
order to post business transactions.
The periods open and close will be controlled along with the Account type.
Account Type: In SAP Account Types are used to Identify and control nature of Business
transactions.
S: General Ledgers
A: Assets
D: Customers
K: Vendors
M: Materials
+: All

OPEN AND CLOSE POSTING PERIOD (OB52):

Path: SPRO > SAP Reference IMG > Financial accounting > Financial Accounting Global
Settings > Document > Posting Periods > Open and Close Posting Period

Steps:

Click ‘New Entries’

1. Enter 4 digit variant

2. Enter ‘+’

3. Enter starting Period & Yr

4. Enter ending period & Yr

5. Enter First Spl Period & Yr

18
 6. SAVE the settings

Field Status Variant:

Note 1. While creation of GL Accounts we must assign the field status group to the GL
Account. Hence while posting Business transactions system will validate the status of the
fields against that group and accordingly the respective fields will get populated. Standard
SAP recommended only to copy field status variant from the existing variants 0001 OR 1000.

DEFINE FIELD STATUS VARIANTS (OBC4):

Path: SPRO > SAP Reference IMG > Financial accounting > Financial Accounting Global
Document > Line item >Control > Define Field Status Variants

Steps:

Click ‘New Entries’

1. Select ‘0001’

2. Click ‘Copy as’

3. Change ‘0001’ as ‘HL06’

4. SAVE the settings

5. Click ‘Copy all’

6. Press ‘Enter’

7. SAVE

19
* Select the renamed one and double click on field state group on the left side. Click on the
position then type G001.

* Double click on General enter into the general data. Double click on the general data

* Select required entry radio button for the field text. And Save (Ctrl + S)

20
ASSIGN COMPANY CODE TO FIELD STATUS VARIANTS (OBC5):

Path: SPRO > SAP Reference IMG > Financial accounting > Financial Accounting Global
Document > Line item > control > Assign Company Code to Field Status Variants

Steps:

1. Click ‘Position’

2. Enter Co. Code

3. Enter Variant Code

4. SAVE the settings

DEFINE DOCUMENT NUMBER RANGES (FBN1):

Path: SPRO > SAP Reference IMG > Financial accounting > Financial Accounting Global >
Document > Document header > Define Document Type

21
*Click on position type SA means GL A/C

*Select details icon then click on number range information

*Then select company code > Change intervals > Save

DEFINE TOLERANCE GROUP

22
Path: SPRO > SAP Reference IMG > Financial accounting > Financial Accounting Global
Settings > Document > Line Item > Control > Define Tolerance Group for Employees

Steps:

Click ‘New Entries’

1. Enter Co. Code

2. Enter Currency ‘INR’

3. Enter Max Amount

4. Enter Amount

5. Enter Percentage

6. Enter Amount

7. Enter Percentage

8. SAVE

ASSIGN USER/TOLERANCE GROUPS (OB57):

Path: SPRO > SAP Reference IMG > Financial accounting > Financial Accounting Global
Settings > Document > Line Item > Control > Assign User/Tolerance Group

*Then Assign Username to Tolerance Groups and Check Our Company to Save (Ctrl+ S)

23
 GENERAL LEDGER
 Define Chart of Accounts
 Define Account Groups and Number ranges
 Define Retained Earning Account
 Creation of GL Master records
 GL Document Entry

Define Chart of A/C (OB13):

Path: SPRO > SAP Reference IMG > Financial accounting > General Ledger A/C > Master
Data > GL A/C > Preparations > Edit Chart of Accounts List

Steps:

Click ‘New Entries’

1. Enter 4 digit code

2. Enter Description

3. Enter Language

4. Enter Length of GL

5. SAVE the settings

Assign company code to Chart of A/C (OB62):

24
Path: SPRO > SAP Reference IMG > Financial accounting > General Ledger A/C > Master
Data > GL A/C > Preparations > Assign Company code to Chart of Accounts

Steps:

1. Click ‘Position’

2. Enter Co. Code

3. Enter CoA Code

4. SAVE the settings

Define Account Group (OBD4):

Path: SPRO > SAP Reference IMG > Financial accounting > General Ledger A/C > Master
Data > GL A/C > Preparations > Define Account Group

Steps:

Click ‘New Entries’

1. Enter Co. Code

2. Enter A/c Group

3. Enter Group Name

4. Enter From A/c No.

5. Enter To A/c No.

6. SAVE the settings

DEFINE RETAINED EARNINGS ACCOUNT (OB53):

25
Path: SPRO > SAP Reference IMG > Financial accounting > General Ledger Accounting
> Master Data > G/L Accounts > Preparations > Define Retained Earnings Account

Steps:
Enter Chart of Accounts
1. Enter ‘X’
2. Enter Liabilities A/c
3. SAVE the settings
4. Press Enter

DEFINE POSTING KEYS (OB41):

Path: Spro > SAP Reference IMG > Financial accounting > Financial
Accounting Global Settings > Document > Define Posting Key

Steps:
1. Click ‘Create’
2. Enter Posting Key
3. Define Key Name
4. Define Debit/Credit
5. Define A/c type
6. SAVE the settings

CLASSIFY G/L ACCOUNT FOR DOCEMENT SPLITTING:

26
Path: SPRO > SAP Reference IMG > Financial accounting > General Ledger
Accounting > Business Transaction > Document Splitting > Classify G/L
Account for Document Splitting

*Enter the Chart of Account Code. An Account Group to Assign a Categories. Then Check
Our Company to Save The Company (Ctrl+ S).

DEFINE ZERO- BALANCE CLEARING ACCOUNT:

Path: Spro > SAP Reference IMG > Financial accounting > General Ledger
Accounting > Business Transaction > Document Splitting > Define Zero-
Balance Clearing Account

Step :
1. Click on new entries
2. “000” standard Zero balance select, copy & rename

27
 3. Double tap the accounts give copy all
4. Then enter the
Co. Code and fill
the Current
liability
5. Save the settings.

EDIT G/L ACCOUNT CENTRALLY (FS00):

Path: Spro > Sap Reference IMG > Financial Accounting > General Ledger
Accounting > Master Data > G/L Accounts > G/L Account Creation and
Processing > Edit G/L Account (Individual Processing) > Edit G/L Account
Centrally

Steps:
Create GL A/C > Group number >
Company Code
1. Enter A/c group
2. Select P&L or B/S
3. Enter Short Text
4. Enter Long Text
5. Click ‘Control Data’
6. Enter Currency
7. Select Line Item
8. Enter Sort Key (001)
9. Select Recon A/c (If necessary)
10. Click ‘Create/Bank/Interest’
11. Enter Field Status group (G001)
12. SAVE the settings

28
POSTING DOCUMENT THROUGH (F-02)
Path: Spro > Sap Reference IMG > Financial Accounting > General Ledger > Document
Entry > General Posting
Steps:
1. Enter Doc Date
2. Enter Posting Date
3. Enter Doc Type
4. Enter Period
5. Enter Co. Code
6. Enter Currency
7. Enter Dr Post Key
8. Enter Cr Post Key
8. Enter GL Code Press ‘Enter’ to
‘Simulate’
9. Then Post the document by
saving

29
PARKING DOCUMENT (FB50):
A clerk can post the G/L document with the amount which is authorized for him to
approve. If he needs to post a G/L document with excess amount than authorized, the
document needs to be saved and send for higher authority review. The process of saving G/L
document with excess amount than authorized is called as Park G/L document posting.

Path: SAP Easy access > Accounting > Financial Accounting > General Ledgers > Posting >
Enter G/L Account Document

Step:
1. Enter the Company code
2. Document Date
3. G/L Account to be credited
4. Credit Amount
5. G/L Account to be debited
6. Debit Amount
7. Click Enter
8. Then Check the entry by
simulate
9. And finally park the doc

FBV3 – Display Document

30
FBV0 – Delete, Edit, Clear Parked Document

G/L ACCOUNT DOCUMENT (FB50):

*A Loan Amount 3,00,000 Has Been Received and Entry to the G/L Account
Document
*Then Save (Ctrl+ S) To Show Our Document Number (10009).
ENTER RECURRING ENTRIES (FBD1):
*To Create Recurring Entry of Financial Starting and Ending Month in First
Run on And Last Run on, Then Click on A Fast Data Entry
# AE Is Accounting Document
*A Loan Amount 3,00,000 To Separate for a 12 Months to Paid
POSTING DOCUMENTS FROM RECURRING DOCUMENTS
(F.14):
*Create the Entire Entries to Set the Settlement Period of Financial Starting
Month, Then Click On Execute from Running to The EMI Month
#Session MAHINDRA Was Created
*(Footer Side) Session Was Created. Then, Services → Batch Input → Sessions
*Select Our Session to Click On Symbol for Release and Click On Process
#Select Background and Click Process to Running Up with Backend.
SAMPLE DOCUMENT (F-01):
*Enter the Document Date and Click the Fast Data Entry
*It Was Created One of The Sample Entries.
*Click on The Post with Reference to Enter the Doc. No and Fiscal Year
*To Select the Two Items (Enter G/L Account Items and Display Line Items)

31
*Then Enter to Show on Posting Date and Double Enter to Posting Document.
REPORT FOR G/L ACCOUNT (FS10N):
*Enter the Account Number, Company Code and Fiscal Year. Then, click on
Execute
* To Show on the G/L Account Statement.

ACCOUNTS RECEIVABLE
DEFINE ACCOUNT GROUPS WITH SCREEN
LAYOUT [CUSTOMERS] (OBD2):
Path: Spro > SAP Reference IMG > Financial Accounting > Accounts
Receivable and Accounts Payable > Customer Accounts > Master Data >
Preparations for Creating Customer Master Data > Define Account Groups
with Screen Layout [Customers]
*Click on A New Entries
*Create the Customer Account Groups (CGMA)
*Then Save The Customer Group for Company.

CREATE NUMBER RANGES FOR CUSTOMER ACCOUNTS

(XDN1):
Path: Spro > SAP Reference IMG > Financial Accounting > Accounts
Receivable and Accounts Payable > Customer Accounts > Master Data >
Preparations for Creating Customer Master Data > Create Number Ranges
for Customer Accounts
*Click On Intervals To Create Number Ranges For Customer (4M) and To
Save.

ASSIGN NUMBER RANGES TO CUSTOMER ACCOUNT

GROUPS (OBAR):
Path: Spro > SAP Reference IMG > Financial Accounting > Accounts
Receivable and Accounts Payable > Customer Accounts > Master Data >
Preparations for Creating Customer Master Data > Assign Number Ranges
to Customer Account Groups
* Click On Position To Enter The Customer Account Group To Find Our
Company
*Then Assign Customer Account Groups to Customer Number Range
*Then Save The Customer Group for Company.

DEFINE TOLERANCES [CUSTOMERS] (OBA3):

Path: Spro > SAP Reference IMG > Financial Accounting > Accounts

32
Receivable and Accounts Payable > Business Transactions > Incoming
Payments
> Manual Incoming Payments > Define Tolerances (Customers)
*Click on New Entries
*To Create Customer Tolerances with Amount of Gain and Loss
*Then Save The Customer Group for Company.

CUSTOMER CREATION FD01

*Enter the Customer Account Group and Company Code to Create Customer
*To Create the Customer Details and Click on Company Code Data for
Customer Was Created by Our Company
*Account Management: Assign A Recon. Account (10003 - Sundry Debtors)
And Sort Key (031 - Customer Number)
*Payment Transactions: Enter the Terms of Payment (0001) And Tolerance
Group (TGMA) Then Save (Ctrl+ S).
# Document 10010 (Customer Number) Was Created.
CUSTOMER INVOICE (FB70):
*Enter the Customer Invoice Creation to An Amount of Rs. 1,00,000 to Show
the Down Payment Amount (10,000) Is Exist and save (Ctrl+ S)
*(Footer) Document 10704 Was Posted in Company Code MA44.
INCOMING PAYMENTS (F-28):
*Payment Received by The Customer for Invoice (82,500) And Save (Ctrl+ S)
*(Footer) Document 10305 Was Posted in Company Code MA44.
DEFINE RECONCILIATION ACCOUNTS FOR CUSTOMER
DOWN PAYMENTS (OBXR):
Path: Spro > SAP Reference IMG > Financial Accounting > Accounts
Receivable and Accounts Payable > Business Transactions > Down Payment
Received > Define Reconciliation Accounts for Customer Down Payments
*Click on Down Payment and down payment request to Enter the Chart of
Accounts
*Assign A Reconciliation Account (10003 – Sundry Debtors) And Special G/L
Account (10201 – Down Payment Received) In Down Payment and Down
Payment Request
* Then Save (Ctrl+ S) The Customer Group for Company.
POST CUSTOMER DOWN PAYMENT (F-29):
*Entry the Down Payment (Advance) For Customer of Rs.10,000
# A Is Down Payment and DZ Is Customer Payment
*(Next Page) Re-Enter to Amount (*) and text (+), Save The Customer Group.
CLEAR CUSTOMER DOWN PAYMENT (F-39):
*Enter the Account (Customer Number) And Text (Clearing Down Payment)
*Enter the Received Customer Down Payment Amount of Rs.10,000 To
Cleared, Then Save (Ctrl+ S) The Customer Group for Company.

33
CUSTOMER CREDIT MEMO [SALES RETURN] (FB75):
*To Enter the Sales Returns of The Customer in Amount of Rs.7,500 And Then
Save (Ctrl+ S) The Customer Group for Company
*(Footer) Document 10504 Was Posted in Company Code MA44.

Vendor
Accounts Payable is used to manage and record accounting data for all the vendors. All
invoices and deliveries are managed as per vendor requests. Payables are managed as per
the payment program and all the payments can be made using checks, transfer, electronic
transfers, etc

Vendor Account group (OBD3):

Path: IMG – Financial Accounting – Accounts Receivable & Accounts Payable – Vendor
Accounts –Master Data – Preparation for creating Vendor Master Data – Define Account
groups with Screen Layout

34
 Steps:
Click ‘New Entries’
1. Enter 4 Digit Code
2. Enter name of the
Group
3. SAVE the settings

CREATE NUMBER RANGES FOR VENDOR ACCOUNTS (XKN1):

Identifies a number range interval within an object or sub object. A unique number is
assigned to each business partner master record. You can use this number to access the
master record, or to refer to the business partner when processing business transactions. A
number range can be valid for more than one account group.
Path: Spro > SAP Reference IMG > Financial Accounting > Accounts
Receivable and Accounts Payable > Vendor Accounts > Master Data >
Preparations for Creating Vendor Master Data > Create Number
Ranges for Vendor Accounts Steps:
1. Click ‘Change Interval’
2. Click ‘Insert Interval’
3. Enter Sl No.
4. Enter ‘From Number’
5. Enter ‘To Number’
6. Select this box, If you want External
numbering
7. Save the settings

Assign Number Ranges to Vendor Account Groups (OBAS):

Path: IMG > Financial Accounting > Accounts Payable > Vendor Accounts > Master Data –
Preparation for creating Vendor Master Data > Assign Number range for Vendor account
group Steps:

1. Click ‘Position’
2. Enter A/c group

35
 3. Enter Number range
4. Save the settings

Tolerance for Vendor (OBA3):

Freely definable group code for customers and vendors, or G/L accounts. Tolerance
groups are unique within a company code
Path: IMG > Financial Accounting > Accounts Payable > Business Transactions > Open
Item Clearing > Clearing Differences > Define Tolerances for Vendors
Steps:
1. Enter Co. Code
2. Enter Group name
3. Enter Amount
4. Enter Percentage
5. SAVE the settings

Ledger Creation (FS00): Steps:

1. Create GL A/c Code of Sundry Cr
2. Enter Co. Code HL06
3. Select Current Liability A/c group
4. Select B/S
5. Enter Short Text
6. Enter Long Text
7. Click ‘Control Data’
8. Enter Currency
9. Enter Recon A/C “Vendor”
10. Select Line Item
11. Enter Sort Key “012”
12. Click on ‘Create/Bank interest’
13. Enter Field Status group “G067”
14. SAVE the settings

36
 Steps:
1. Create GL A/c Code of Cr Purchase
2. Enter Co. Code HL06
3. Select Purchase A/c group
4. Select P&L A/C
5. Enter Short Text
6. Enter Long Text
7. Click ‘Control Data’
8. Enter Currency
9. Select only balance in local currency
10. Select Line Item
11. Enter Sort Key “001”
12. Click on ‘Create/Bank interest’
13. Enter Field Status group “G001”
14. SAVE the settings

VENDOR CREATION (FK01):

Path: Easy Access – Accounting – Financial Accounting – Accounts Payable – Master
Records – Create Steps:
1. Enter Co. Code
2. Enter Group name
3. Click ‘Execute’

Steps:
1. Select Title
2. Enter Vendor Name
3. Enter Address
4. Enter Country Code
5. Enter language then click enter
6. Account info: Select Recon A/C “Sundry Cr”

37
 7. Select sort Key ‘012’
8. Select Cash mgmnt group ‘A1’ & Click Enter
9. Payment Transactions: Enter the Terms of Payt (0001) and Tolerance Group (HLVT) &
Save

VENDOR INVOICE (FB60):

Path: Easy Access > Accounting > Financial Accounting > Accounts Payable > Document

Entry > Invoice Steps:

1. Enter Vendor
Code, Invoice
date, posting date.
2. Enter ‘Amount’
3. Enter ‘Text’
4. Enter ‘GL Code’
5. Select Dr / Cr
6. Enter ‘Amount’
7. Simulate and Post the doc

OUTGOING PAYMENT (F-53):

Path: Easy Access > Accounting > Financial Accounting > Accounts Payable > Document Entry
> Out going payment > Post Steps:
1. Enter Doc date, post-date,
Company code and Currency
2. Enter ‘Bank GL A/c’
3. Enter ‘Amount’
4. Enter ‘Vendor Code’
5. Click ‘Process open Items’
6. Select ‘Partial Pmt’ & Adjust
the amount in payment amount
7. Simulate and Post

38
Down payment ledger (FS00):

Define Alternative
Reconciliation Accounts For Down Payment (OBYR):
Path: Spro > SAP Reference IMG > Financial Accounting > Accounts Payable > Business
Transactions > Down Payment Made > Define Alternative Reconciliation Accounts for
Down Payment

Steps:
1. Double click ‘Down payment on
current asset’ & ‘Down payment request’
2. Enter Chart of Accounts
3. Enter Vendor Recon GL A/c (S.Crs)
4. Enter Vendors Spl GL A/c (Down
payment paid)
5. SAVE the settings

Vendor Down Payment Posting (Advance Amount) (F-48):

Path: Easy Access – Accounting – Financial Accounting – Accounts Payable – Document
Entry – Down Payment – Down Payment
Steps:

39
 1. Enter Doc date, postdate, Company code,
Currency, Vendor Code,
2. Enter ‘A’ in Spl GL A/C
3. Enter ‘Account, Amount, Buss Area & Text
4. Press ‘Enter’
5. Enter * - Amount, + - Text
6. Post the Document

VENDOR INVOICE (FB60):

Path: Easy Access > Accounting > Financial Accounting > Accounts Payable > Document

Entry > Invoice Steps:

1. Enter Vendor Code, Invoice

date, posting date.
2. Enter ‘Amount’
3. Enter ‘Text’
4. Enter ‘GL Code’
5. Select Dr / Cr
6. Enter ‘Amount’
7. Simulate and Post the doc

Transfer of Balance (F-54):

Which means the advance amount of Cr Purchase should view in Report (FBL1N)
Steps:
1. Enter Doc Date, Vendor A/C
2. Click ‘Enter’
3. Select and Double tap the advance amount
4. Click ‘Enter’ then the total amount change
into advance amount which was given
previously
5. Then Save it

40
REPORT FOR VENDOR ACCOUNT (FBL1N):
*Enter the Vendor Account, Company Code and Click on All Items. Then, To
Click On Execute

41
42