SAP FICO

1) SAP – System ,Application, Product in Data Processing

2) FI – Finance Accounting

3)CO- Controlling- cost

* SAP FI stands for Financial Accounting and it is one of the important modules
of SAP ERP.

* ERP – Enterprise Resource Planning. It integrates all the system in one

system. It facilities free flow of data among department.

* It is used to store the financial data of an organization.

* It helps to analyze the financial conditions( profit /loss) of a company.

* It integrate with other SAP modules like SAP SD ,SAP PP,SAP MM,

SAP CRM etc.

*4th largest software company in the world.(www.sap.com)

SAP History:-
Founded in 1972 by 5 IBM engineers in Walldroff, Germany.

1)SAP R/1 – 1972 ( SAP Real- Time 1 tier)

* First version in which three layers Presentation,Application and Database are
installed in one server/system.
2) SAP R/2 -1979 (SAP Real-Time 2 tier)
* mainframe version in which three layers Presentation,Application and
Database are installed in two separate server.

3) SAP R/3-( SAP Real- Time 3 tier) - 1992

*Sap fico ,Sap SD ,Sap MM etc.

It is the client / server version of the software in which three layers

Presentation,Application and Database are installed in three separate
server/system.

4)SAP S/4 Hana - founded in 2010.

SAP R/3- Modules & integration:-

SAP Functional Modues:-

* FICO- Financial Accounting

* PP- Production Planning

* MM- Material Management

* SD – Sales & distribution

* WM- Warehouse Management

* QM – Quality Management

* HR- Human resources

* CRM - Customer Relationship Management- Call Center

SAP Technical Modules :-

* ABAP- Advanced Business application programming

* XI – Exchange Infrastructure

* Netviewer

* Basis

* BIW – Business Information Warehousing

* Security

SAP based on R/3 structure :-

1)Database layer- Data store

2) Application Layer- Processing

3) Presentation layer- Interface to the user.

Types of projects in SAP :-

1)Implementation- To implement from one software to SAP.

2) Support- To resolve issues of respective teams.

3) Upgrade- To upgrade SAP software to latest version

4) Rollout – To maintain same setting like India in USA etc.

Implementation Project :- ASAP methodology( Accelerated SAP)
In the implementation project, there are 5 Phases:-

1)Project preparation ( What are the things they wants in SAP).

2)Business Blueprint ( How it is going to be in SAP)

3) Realization – ( Configuration & Customization )

4) Final Preparation – Testing

5) Go Live & support.

Types of server:-
1) Development server ( Consultant)
2) Quality server ( Testing )
3) Production server ( User/End user)

SAP FI – Submodules :-
1)Finance Accounting –General Ledger

2) Finance Accounting – Account Receivable(AR) & Account Payable(AP)

3)Finance Accounting – Assest Accounting

4) Finance Accounting – bank Accounting, taxation.

5)Finance Accounting –Travel Management - HR

6) Finance Accounting- Fund Management

7) Finance Accounting –Legal Consolidation- multiple units into single unit.

Finance Accounting -General Ledger:-

A general ledger contains all the transaction details of a company. It acts as the
primary records to maintain all accounting details . Common general ledger
entries are customer transaction,purchases from vendors and internal

company transaction.

T-code( transaction code) :-

1)FB50 4)OBBO, OBBP ,OB52

2)FBV0 5) OBC4 ,OBC5

3)FS00 6)OB29, OB37

Finance Accounting – Account Receivable(AR) & Account Payable(AP):-

It includes the details of amount that is paid by the customer and the amount
that is paid by company to the vendors.

*AP includes all the vendor transactions

*AR includes all the customer transactions.

AR T-codes:- AP T-codes:-

1)FB70 1) FB60

2)FD01 2)FK01

3)F-28 3) F-53
Finance Accounting – Assest Accounting:-

Assest Accounting deals with all the fixed assest of the company and provides
all the transactions details about fixed assests.

T-code:-

1)AS01

2)AS11

3)AW01N

Finance Accounting – bank Accounting :-

It deals with aall the transaction done through bank. It includes all the
incoming and outgoing transactions performed ,balance management and
bank transaction master data.

T-code:-

*FIBLAROP *FI13 *RVND

*OBEBGEN *FF_6

Finance Accounting –Travel Management :-

This module is used to manage all the travel expenses of a company. It involves
all the travel request,their planning and expenses involved in all the requested
trips. It helps an organization to manage travel expenses in an efficient
manner.

T-code:-

*PR05 *TRIP

*PRTS *PR00
Finance Accounting- Fund Management:-

This module is used to manage funds in a company. It involves all the

transactions for fund receiving, fund expenditure and future expenses.It helps
a company to create budget forecasting and to use the funds in a proper way.

T-code:-

*FM5I

*FMWA

Finance Accounting –Legal Consolidation:-

It helps an organization to treat its multiple units as a single company hence it

enables to view all the details as a financial statement for all the companies
under that group.

SAP FI –Company basics:-

A company is defined as the smallest unit for which financial statements can be
created in accordance with commercial legal regulations.

1)Create Company

2) Create company code

3)Assign Company code to Company

4) Define Business Area.

Create Company :-

T-code- OX15

Path- spro> sap ref. img > enterprise structure >definition> Financial
accounting >define company >click on execute.

SAP FI- company code:-

It is an independent organizational unit which is registered under Companies

Act ,1956. Under company code , you can generate individual financial
statements like profit & loss A/C and Balance sheet. It contains only 4 digit
alphanumeric characters.

T-code- OX02

Path- spro> sap ref. img > enterprise structure >definition> Financial
accounting > Edit, copy ,delete check company code > execute.

Assign Company code to company:-

T-code- OX16

Select on position > enter company code > enter company name > save

SAP FI –Business Area:-

Business Areas are used to differentiate transactions that comes from different
lines of business in a company.

T-code- OX03

Path- spro> sap ref. img > enterprise structure >definition> Financial
accounting >Define Business Area >Execute
SAP FI –Chart of Accounts:-
The FI chart of accounts represents the list of GL accounts that are used to
meet the daily needs and the operating country’s legal requirement in a
company. The master chart of accounts must be assigned to each company
code.

Chart of accounts (COA) can be divided into the following types:

Operating Chart of Accounts – It contains all the General Ledger accounts

that are used to meet the daily needs in a company. The operating chart of
accounts has to be assigned to a company code.

Country Chart of Accounts – It contains a list of all General Ledger accounts

that are required to meet the operating country’s legal requirements. You can
also assign a company chart of account to the company code.

Chart of Accounts Group – This COA group contains a list of all the G/L
accounts that are used by the entire company.

T-Code = OB13

1) Click on new entries

2)create new Chart of a/c

3) Maintain lang.- English

4) Create length of GL a/c No- 6

Then save.
Assign COA to Company Code :-
T-code- OB62

Path- Spro >sap ref. img> financial accounting> GL accounting> preparation>

assign company code to COA.

Select on position > enter CC > enter COA > save

Define Account Group:-

T-code –OBD4

Path- Spro >sap ref. img> financial accounting> GL accounting> preparations >
Define A/C group > Execute > new window will open > new entries > define
account group.

Shcp share capital 100000 199999

Asst Assest 200000 299999

LIAB Liabilities 300000 399999

INCO Income 400000 499999

EXP Expenses 500000 599999

& then save .

Define Retained Earning –

Retained Earning Account is used to carry forward the balances from one fiscal
year to another fiscal year. To automatically forward the balance to the next
fiscal year, you can define P/L statement as per COA and assign them to the
retained earning accounts.

T-code- OB53

Path- Spro >sap ref. img> financial accounting> GL accounting> preparations >
Define retained Earning account >execute.

X - 100000

& save

Define fiscal year variant :-

T-code – OB 29

Path- spro > sap ref img> financial accounting > financial accounting global
setting > fiscal year > maintain or assign fiscal year variant to cc

V3 - april to March

K4 – Jan to dec

This is done only to check whether standard is made or not.

Assign fiscal year variant to CC:-

T-code – OB37

Path- spro > sap ref img> financial accounting > financial accounting global
setting > fiscal year > maintain or assign fiscal year variant to cc

Select on position > assign FY as V3 > then save

11) Define posting Period Variant:-

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.

T-code – OBBO

Path- spro> sap ref. img> Financial accounting> Financial accounting global
setting> Document > posting periods > define variant for open posting periods
>execute

Select on New entries > create new PPV > save

12) Assign PPV to Company code :-

T-code- OBBP

Path – same

Select on Position > enter CC > enter PPV > save

13) Define open and closed period :-

T-code – OB52

Path – spro> sap ref. img > financial accounting > financial accounting global
setting > document > posting period > open and close period > execute.

Variant – enter 4 digit code

Select a/c types:-

+ - valid for all a/c types

A- assest

D- customer

K – vendor
M- materials

S- general ledger account

Enter period.Then save .

19) Define posting keys ( Already made – Not need to do ):-

Posting keys are used to determine Account types (A,D, K ,M & S) and also the
type of posting. It is 2 – digit numerical key.

A- assest

D- customer

K – vendor

M- materials

S- general ledger account

Assest posting keys:-

70 – debit assest

75- credit assest

Material posting keys :-

89- stock inward movement – material debit

99- stock outward movement – material credit .

For Other normal entries:-GL accounting

40 – debit

50 – credit

Define field status Variant :-

It is used to define the fields which are used for input.

T-code –OBC4

1) Supress – Filed will be hide.

2) Require – Mandatory.

3) Optional – Filed or not.

Path – spro> sap ref img> financial accounting new > global settings > ledgers
> field > define field status variant

Standard – 0001, select and check field

First copy > change FSV name > copy all > save

Assign field status variant to CC:-

T-Code – OBC5

Postion > enter company code > define FSV >save

Document types- (Already made – No need to create new )

It is used to distinguish between different business transaction and to classify

the accounting documents. It is also used to determine the number range for
documents and account types such as assest , material, vendor ,etc for posting.

Document types description

SA - GL posting

AA – Assest posting

AN – Net assest posting

DR- customer invoice

DZ- customer payment

KR – vendor invoice

KG- vendor credit memo

KZ – Vendor payment

Path :-

Spro> SAP ref. img > Financial accounting (new) > Financial accounting global
settings > document > document types> define document type for entry view.

Document types already registered in sap . No need to make new.

1)Document Number ranges ( Only to check ) -

T-code – FBN1

Path :- document > Document no. ranges > Document in entry view.> define
document number range for entry view

Standard – 0001 , Year -1992

2) Copy to Company code :-
T-code – OBH1

Fiscal year – 1992

Source CC – 0001

Target CC- own CC , then execute & Save .

3) Copy to fiscal year:-

T-code – OBH2

CC- Own CC

Source fiscal year – 1992

Target fiscal year – 2022

Define tolerance group:-

In this activity , you specify the various amount limit for your employees. These
limit determine :-

1) The max. amt. for which an employee is permitted to post a document.

2)The max. amt for which an employee is permitted to enter a line item in a
customer or vendor a/c .

3) The discount % the employee is permitted to enter in a line item .

4) To what amount payment diff. can be accepted.

Payment differences within specific tolerance groups are automatically

posted.The system posts the differences by either adjusting the discount or
posting it to a separate expenses or revenue a/c.
T-code – OBA4
Path :- spro > img > financial accounting > g/l accounting (new) > business
transaction > open item clearing > clearing differences > define tolerance
group for employees.

New entries-

Amt. per document -99999999

Amt . per open item a/c item – 999999

Cash disc. Per line item – 5%

Permitted payment differences :-

Revenue – 100(amt ) , 1%,100 (cash disc.)

Expenses – 100(amt ) , 1%,100 (cash disc.)

Define Tolerance group for AR /AP :-

T-code – OBA3

Click on New entries – enter CC

Permitted payment diff :-

Gain – 100 1% 100

Loss – 100 1% 100

Permitted payment diff. automatic write off :-

Revenue – 100 1%

Expenses – 100 1%

*Document splitting :-
Path – spro> SAP Ref. img > Financial accounting (New)> GL accounting (New )>

Business transaction > Doc . splitting > Activate doc. Splitting > Deactivation
per CC >select position > Enter CC >Click on Inactive.

GL Creation:-
Used for creating Ledger. We also have to define account group for all GL.

T-code – FS00

Path:-

SAP easy access >accounting > financial accounting > General ledger > master
records > GL accounts > Individual processing > centrally

Parking Document :- Temporarily store document until it approved by

Authorised user.

Eg- Doc. Parked By Junior accountant.

Posted by Sr. accountant.

Path :- sap easy access > accounting > financial accounting > general ledger >
document entry > FB50

T-code :- FB50

1) provide CC

2) Provide date ,text and amt. in doc. Currency.

Journal entry Posting :-

T-code =FBV0

Enter on Doc. List > select your entry doc. > open parked entry > post

To check posted documents:-

Path :-Sap easy access >accounting >Financial accounting > GL > document

T-code – FB03

To check all documents parked and posted:-

T-code – FBL3n

Normal items – posted

Parked items – parked

Note :-

1)Parked doc. Can be deleted .

2) Posted doc. Can only be reversed( Cannot be deleted).

To delete parked document:-FBV0

Firstly open parked document > click on system >delete parked document .

Document reversal :-

T-code – FB08

Path –m accounting > financial accounting >general ledger > document >
reverse >

Reversal reason – 05 ( Accrual)

Click on document list > select entry > then save

Doc type – AB will be generated for reversal entry .

SA for Normal posted entry.

You can check on FB03 or FBL3n .

General Points to be remember :-

1)Document types :-

SA - GL posting

AA – Assest posting

AN – Net assest posting

DR- customer invoice

DZ- customer payment

KR – vendor invoice

KG- vendor credit memo

KZ – Vendor payment

2) create new session

3)Download GL dump:-

T-code – FBL3n

4) Delete G/L Account

5) Block G/L Account

6) Display posted doc.

T-code – Fb03

7) To check parked & posted doc :-

T-code – FBL3n

Click on Normal item – (to check posted entry)

Click on parked item – ( To check Parked entry ).

Recurring entries- Entries which we do on the regular basis.

Path – easy access > accounting > general ledger > doc . entry >reference doc.
> FBD1

First run – 01.04.2021

Last run – 31.03.2022, interval in months – 01 (once in a month )

Run date – 10

Doc . type – SA, pst key -40 , Gl – Broadband bill , enter amount , text ,save

To display Recurring document:-

T-code – FBD3

Accounting > Financial accounting > general ledger > document > Reference
doc. > recurring doc . > display

To post Recurring Document :-

T-code = F.14

Accounting > Financial accounting > periodic processing > recurring entries >
execute

Settlement period – 01.04.2021 to 31.03.2021

Batch input session – Test 1 > execute

To process Recurring doc :-

System > services > Batch input > session > select test 1 > process >
background

Foreground- first show whole entry and can change if required.

Background- process in background.then check now in GL display.

GL display balance :-

T-code – FAGLB03

Path – sap easy access > Accounting > > financial accounting > GL > accounts >
display balance