1.Define company?

A company is the smallest organizational unit for which individual financial statements can be drawn up
according to the relevant commercial law. A company can contain one or more company codes. Note.
You cannot use the prefix SAP at the beginning of your company name.

2. define 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.

1.Define fiscal year

A time period (usually 12 months) for which a company is required to provide its physical inventory count and balance
sheet.

The fiscal year can be the same as the calendar year, though this does not have to be the case.
Under certain circumstances, a fiscal year is allowed to have fewer than 12 months (shortened fiscal year)

2.Assign company code fiscal year

3.Posting period variant

SAP FI Posting period variant is used to maintain accounting periods that are open for posting and all
closed period are balanced. This is used for opening and closing period in the fiscal year for posting
purpose. You can assign these posting periods to one or more company codes.

4. open close posting period variant ?

What is Open and close posting periods Variant

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

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

 Companies Profitability released up to June 2016.
  We need to open posting periods in SAP from July 16 – April 17.

How to define open and close posting periods in SAP

This is one of the important job in real time and only authorised persons are allowed to control open and
close posting periods in SAP. This is a manager level job and only authorised consultant allowed to
perform open and close periods.
You can define variants for open and close posting period by using one of the following navigation meth

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5. Assign posting
period variant to
company code
(OBBP)

6. Define filed status

variant (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.
Example − We define fiscal year variant and it can be assigned to more than one company code. If a field
status variant is assigned to more than one company code, the same set of screen field will be displayed
while posting those company fields.

7. assign filed status variant(obc5)

8.Posting key (OB41)

What is a Posting Key in SAP PF? Posting Key refers to a double-digit numeric key that is defined to
control the entry processes of document line items in an FI Transaction. These posting keys specify
whether the line item is a debit or credit entry account type. It also specifies the screen layout of the line
items.

9.Define document types (OBA7)

The document type is a key that is used to classify accounting documents and distinguish between
business transactions to be posted. The document type is entered in the document header and applies
to the whole document.

The document type has the following purposes:

 Differentiating between business transactions. Since the document type is shown for every line
item, you can always tell what type of business transaction is involved. You can also use the
document type for evaluation purposes.
 Controlling the posting to account types (vendor, customer, or G/L accounts). The document
type determines which account types that particular document can be posted to.
 Assigning document numbers. A number range is assigned to every document type. The original
documents from one number range should be stored together.

10.Define document number range (OBA7 FBN1)

Document Number range means

  a number interval from which document numbers are selected
 the type of number assignment (internal or external)

You assign one or more document types to each number range. The number range becomes effective via
the document type specified in document entry and posting. You can use one number range for several
document types. This means you can differentiate documents by document type but combine them
again for filing the original documents, provided you store your original documents under the EDP
document number.

11.Define Tolerance group (OBA4)

The tolerance group for Employees determines the maximum document amount the employees are
authorized to post. The maximum amount can enter as a line item in a vendor account or customer
account. A tolerance group is created and assigned to the employees.