SAP FICO

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 FINANCE MODULE

G/L Configuration
Company Code Creation

DEFINE COMPANY CODE

NAME ONLY

Menupath T.C.SPRO
Sap Ref. Img' ->'Enterprise Structure' -> Definition -->Financial Accounting --> 'Edit, Copy, Delete, Check
Company Code' -> Double Click On 'Edit Company Code Data' -->Click On 'New Entries' -> Enter
Company Code, Name, City, Country ,Currency & Language' -> Save -> Enter 'Title, Name & Country'->
Enter. & Back

DEFINE CHART OF ACCOUNT

Menupath T.C 0B13

Financial Accounting- General Ledger Accounting-> Master Records --> G/L Accounts --> Preparations -
> 'Edit Chart Of Accounts List' -> 'New Entries' -> Enter 'Chart Of Accounts , Description & Language'-
>Save & Back

ASSIGN COMPANY CODE TO CHART OF ACCOUNT

Menupath T.C OB62

Financial Accounting- General Ledger Accounting, Master Data- GL Accounts- Preparations 'Assign
Company Code To Chart Of Accounts'---> 'Position' --> Enter Company Code--> Mention The Chart Of
Accounts --> Save & Back

Define ACCOUNT GROUP

Menupath T.C OBD4
Financial Accounting- General Ledger Accounting- Master Data-GL Accounts-Preparations
'Define Account Group' -> Click on 'New Entries' -->
Enter Chart Of Accounts ,A/C Group , Name ,Number Range From &To Enter
Enter Chart Of Accounts ,A/C Group , Name ,Number Range From &To Enter
Enter Chart Of Accounts ,A/C Group , Name ,Number Range From &To Enter
Enter Chart Of Accounts ,A/C Group , Name ,Number Range From &To Enter
Save & Back

DEFINE RETAINED EARNING ACCOUNT

Menupath T.C OB53
Financial Accounting -General Ledger Accounting Master Data, G/L accounts -Preparations 'Define Retained
Earnings Account'-> Enter Chart Of A/C--> Enter -->Enter 'X & Y' In 'P&L Statmt A/C Type & Account'

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Respectively ->Save -> Enter & Back

ASSIGN FISCAL YEAR VARIANT

Menupath T.COB37
Financial Accounting-Financial Accounting Global settings-Ledgers-Fiscal year&Posting periods
Assign Company Code To A Fiscal Year Variant --> 'Position' --> Enter Company Code And Enter -->
Enter 'V3’ --> Save & Back

DEFINE DOCUMENT NUMBER RANGES

Menupath T.C.FBN1
Financial Accounting-Financial Accounting Global settings-Document-Document Number Ranges -->
Documents in Entry view –Define document Number ranges-for entry view Enter Company Code -->
'Intervals (Change)' ->'Intervals' -> Enter No 01, Year, Number Range From, To -> 'Enter'-> Save, Enter

DEFINE TOLERANCE RANGES FOR EMPLOYEES

Menupath T.C. OBA4

Financial Accounting-Financial accounting global settings- Document:-Tolerance groups-'Define Tolerance
Groups For Employees' -> 'New Entries' --> Enter 'Company Code & Amount Per Document -> Save &
Back

ASSIGN FIELD STATUS VARIANT AND POSTING PERIOD VARIANT

Menupath T.C. OBY6

Financial Accounting- Financial Accounting Global settings-Global parameters for company code-
Enter Global Parameters --> 'Position' --> Enter Company Code -> Enter --> Double Click On Company
Name-> Enter ‘Field Status Variant & Posting Period Variant’ 0001 & 0001 Respectively-> Save & Back

CREATE G/L ACCOUNT

Menupath T.C.FS00
Accounting-Financial Accounting-General Ledger-Master Records-G/L Accounts-Individual processing
G/L Account Centrally’ -->Enter G/L A/C & Company Code ->Click On Create--> Enter ‘ A/ct Group And
Shot Text’ -> ‘Control Data’-> ‘Only Balances In Local Currency’. -> Create/ Bank/ Interest’->Enter
“G001”-> Save. & Back

DOCUMENT POSTING

T.C.FB50
Accounting-Financial Accounting-General ledger-Document entry-Change Leading Company Code- Enter

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Company Code -> Enter Document->Save. & Back

Company-It is the smallest organization unit for which individual financial statements can be made
according to the requirement of particular country.

Group company in SAP is called company.

In SAP system there is a concept of 1:1 and 1:Many.

A company can consist of one or more company codes.

All company codes within a company must use the same chart of account same fiscal year variant.

Company Code-It is the organizational unit in Financial Accounting by which Internal & External
reporting can be made.

Chart of Account-In SAP system the Chart of Account contains the summary of G/L accounts
Which are created in the particular Company Code i.e.
Account Number
Account Name
Length of G/L

In SAP system there is a concept of 1:1 and 1:Many.

A Chart of Account can be assigned one or more company codes.

In SAP system following are types of Chart of Accounts.

Operative Chart of Account
Group Chart of Account
Country Chart of account

Account Group-In SAP system account group is used for the purpose of combined
the G/L account according to the Balance sheet items and P&L items.

It controls the number range assignment of G/l accounts in particular company code.

Posting Period Variant

A period within a fiscal year for which transaction figures are updated. Every transaction which is posted
is assigned to particular posting period.

Each company code refers to one variant:

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Steps
Define posting period variant
Open & Close posting period
Assign posting period variant to company code

Field Status Variant

A field status variant group together several field status groups.

The field status groups specifies which fields to be optional,required,suppressed.

Steps
Define field status variant
Assign field status variant company code

Tolerance Range

With reference to the key,tolerance for the entry of business transactions and granting of
cash discounts can be determined for all employees.

Steps
Create tolerance for users
Assign user to tolerance groups

Document Number ranges

In SAP System Document number range intervals are specified for each document number range.
From this number range interval, system picks and assigns a number to each transaction posted.

No. No. Intervals

Doc.
Description Range
Type
From To
SA GL account document 01
AA Asset accounting document 01 100000 199999
AB Reversed clearing document 01
DR Customer invoice 18 200000 299999
KR Vendor invoice 19 300000 399999
DZ Incoming payment 14 400000 499999
KZ Outgoing payment 15 500000 599999
DG Customer memos 16
DA Reversal/Clearing Doc. of 16 600000 699999
customers
KG Vendor memo 17
KA Reversal/Clearing Doc. of 17 700000 799999
vendor
AF Depreciation posting 04 800000 899999

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Document Type-Document Type is used for distinguish among various business transactions and to classify
accounting documents. Document Type are defined at client level so document type can be used by
all company codes. It is also used to determine the number ranges for various documents such as
GL, Asset, Vendor, Customer for posting.

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DEFINETION, PURPOSE, AND USE OF EVERY ACTIVITY OF THE COMPANY CODE
CREATION

[1]. DEFINE, COPY, DELETE, CHECK COMPANY CODE

In this activity you create your company codes. The company code is an organizational unit used in
accounting. It is used to structure the business organization From a financial accounting perspective.

You can define your company codes by specifying under a key the following information:

 Company code name

 Address data

 Country currency

You can select a four-character alpha-numeric key as the company code key. This key identifies the company
code and must be entered when posting business transactions or creating company code-specific master data,
for example.
You must also enter a country key and a language key for each company code. The country key specifies which
country is to be seen as the home country. The system uses the language key to determine text automatically in
the language of the relevant country.

You can set up several company codes per client to manage the accounts of independent organizations
simultaneously. At least one company code must be set up in each client.

Recommendation
SAP recommends the following procedure when creating company codes:

1. Create the company code using the function "Copy company code".

2. You enter special company code data with the function "Edit company
code data".

You can also use the function "Edit company code data" to create a company code. However, in this instance,
the company code "global data" is not copied. If you create a company code using the "Copy" function, the
"global data" is usually also copied.

Activities
1. Create your company codes based on the reference (company code 0001) delivered with the standard
system. SAP recommends using the function "Copy company code" to create your company codes.

2. Go to the activity "Edit Company Code Data" and change the name, description, address and
currency. Maintain the company code data that has not been copied.

3. Use the project IMG view for post processing data that are changed automatically. You can a
also carry out post processing at a later stage since the system keeps the generated project
view.

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[2]. EDIT CHART OF ACCOUNTS LIST

In the chart of accounts list you enter the charts of accounts that you want to use in your organization (at
client level).

Activities
1. Check whether you can use one of the charts of accounts supplied with the standard system. To do this,
you can display the charts of accounts on the screen or print them out using the "Chart of Accounts"
program. You can find the program under Accounting -> Financial accounting -> General ledger ->
Information system -> General Ledger Reports -> Master Data -> Chart of Accounts.

2. If you want to create your own chart of accounts, enter it in the chart of accounts list.

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[3]. ASSIGN COMPANY CODE TO CHART OF ACCOUNTS

For each company code, you need to specify which chart of accounts is to be used. Several company codes
can use the same chart of accounts.

Requirements
The chart of accounts must be defined in the chart of accounts list Choose Edit Chart of Accounts List to
enter a chart of accounts in the chart of accounts list.

Standard Settings
Corresponding charts of accounts were assigned to the standard company codes.

Activities
 If you use a standard company code, check whether the chart of accounts you require is assigned to it.

 Assign the required chart of accounts to your company code.

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[4]. DEFINE ACCOUNT GROUP

When creating a G/L account, you must specify an account group The account group determines:

 the interval in which the account number must be.

 which fields are required and optional entries when creating and changing master records

 which fields are suppressed when creating and changing master data.

 0 It enables you to control the layout of screens.

You use account groups to combine accounts according to the above criteria (for example, a P&L account
group, asset account group and material account group).

Note
Account groups for G/L accounts are based on the chart of accounts.

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[5]. DEFINE RETAINED EARNINGS ACCOUNT

You assign a retained earnings account to each P&L account by specifying a P&L statement account type in
the chart of accounts area of each P&L account. At the end of a fiscal year, the system carries forward the
balance of the P&L account to the retained earnings account. You can define one or more P&L statement
account types per chart of accounts and assign them to retained earnings accounts.

Note
Your specification depends on the chart of accounts.

Requirements
The chart of accounts must be specified in the chart of accounts list

Standard settings
Account 332000 was defined for chart of accounts IKR and account 900000 was defined for GKR, using the
key "X" respectively.

Activities
1. Change the standard settings if necessary. If you do not use one of the standard charts of accounts, you
must specify the P&L statement account type(s) and the retained earnings accounts for each new chart
of accounts you set up.

2. Make sure the accounts you specify are created.

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[6]. ASSIGN COMPANY CODE TO FISCAL YEAR VARIANT

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

Requirements
You have defined the corresponding fiscal year variant. The variant does not contain more than 16 periods. For
further information see Maintain Fiscal Year Variant.

Standard settings
The standard company code is assigned to the fiscal year variant that corresponds to the calendar year and uses
four additional special periods.

Activities
Assign each company code to a fiscal year variant.

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[7]. DOCUMENT NUMBER RANGE:

In this activity you create number ranges for documents. For each number range you specify (among other
things):

 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.

Note
The type of number assignment is of special importance. For each document type you should check whether a
separate number range must be used and which type of number assignment is most appropriate.

One example of a case where external number assignment would be suitable is when you transfer documents
into your SAP system from a non-SAP system. The numbers must be unique. The number range is not

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displayed with external numbers. You must therefore ensure that you do not skip any numbers when entering
numbers manually (for organizational reasons). You should use internal number assignment if the original
documents do not have a unique document number. This is the case, for example, with vendor invoices.
Number ranges for documents are company code-dependent. You must therefore create your number ranges for
each company code in which the document type is used, namely with the same number range key. The number
intervals must not overlap. If you use year-dependent number ranges, you can specify the same interval with the
same key several times for different "to- fiscal years" (the limit up to which a number range is still valid). If
you want to define number ranges which are independent of the to-fiscal year, enter 9999 in the to- fiscal year
field.

Caution For sample documents, use a number range with key X2 , for recurring entry documents with key
X1, . These keys may not be used for other number ranges.

Recommendation
Store your original documents (paper documents) under the EDP number of the SAP System. You should write
the EDP document number on the original document. In this way, the original document for a business
transaction can be found at any time.

Activities
1. Determine how document filing is to be carried out in your company codes.
2. Define your number ranges accordingly.
3. Make sure that the number ranges are assigned to the corresponding document types.

Notes on transporting
You transport number range objects as follows:
In the initial screen, choose Interval -> Transport
.
Note that all intervals for the selected number range object are deleted in the target system first. After the
import, only the intervals you export are present. The number statuses are imported with their values at the time
of export.
Dependent tables are not transported or converted.

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[8]. DEFINE TOLERANCE RANGE FOR EMPLOYEES

In this activity, you predefine various amount limits for your employees with which you determine:

 the maximum document amount the employee is authorized to post

 the maximum amount the employee can enter as a line item in a customer or vendor account

 the maximum cash discount percentage the employee can grant in a line item

 the maximum acceptable tolerance for payment differences for the employee.

Payment differences are posted automatically within certain tolerance groups. This way the
system can post the difference by correcting the cash discount or by posting to a separate expense or
revenue account.

In this respect you define:

 the amounts or percentage rates up to which the system is to automatically post to a separate expense or
revenue account if it is not possible to correct the cash discount or

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  o up to which difference amounts the system is to correct the cash discount. In this case the cash
discount is automatically increased or decreased by the difference using tolerance groups.

You can also additionally differentiate these settings by company code. Since the same rules usually
apply to a group of employees, enter the values for employee groups. You can then enter amount limits and
tolerances per employee group and company code.

Note
You can also define tolerances without specifying a tolerance group. Leave the field empty in this case. The
stored tolerances are then valid for all employees who are not allocated to a group. There must be at least one
entry for every company code.
You can also specify tolerances for clearing procedures depending on your customers or vendors.

The lower limits from the customer/vendor specifications and employee group are taken in each case during
clearing.

Standard settings
In the system, sample tolerances are defined for the standard company codes.

Activities
1. For every company code, find out which tolerances are to be determined and whether a differentiation
according to employee group is necessary. If you want to define different tolerances for your employees,
specify the amount limits for each of the groups. If the tolerance limits are to apply to all employees, leave the
"group" field empty.

2. Define the tolerances correspondingly.

3. If you have defined differing tolerance groups, you then have to assign your employees to a certain
tolerance group. To do this, select the activity "Assign users to tolerance groups" . This is where you enter
your employees under the relevant groups.

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[9]. ENTER GLOBAL PARAMETERS

In this activity, you can make various global specifications for the company code. In addition, you can look at
the most important specifications of the company code at any time in the overview. This includes, among other
things, the
chart of accounts and the fiscal year variant.

Requirements
ou have created the organizational unit "Company code" in the "Enterprise Structure" section of the
Implementation Guide. For further information see "Create company code".

Activities
Enter “FIELD STATUS VARIANT “ & “ POSTING PERIOD VARIANT” in the respectively fields.

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[10]. EDIT G/L ACCOUNT CENTRALLY

In this activity, you can edit the master record of a G/L account centrally in both the chart of accounts and
company code specific areas. You can process G/L account master records as follows:

o Edit o Change o Create o Create with reference

o Block o Delete, that is, set the deletion indicator

The individual fields for editing G/L account master records are on the various tab screens. You can change the
titles of the tab screens and the order of the field groups on the tab screens. To configure the layout of the tab
screens, in Customizing choose reparations -> Additional Activities ->Layouts for Individual Processing -
> Define Layout
.
Activities
Edit the G/L account master record.

Further Notes
You can find additional information on editing G/L account master records in the SAP Library under
Accounting -> Financial Accounting -> General Ledger Accounting -> G/L Accounts

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[11]. DOCUMENT POSTING

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