Account Group

7)

Define Account Group :– Chart of accounts contains different types of

accounts, In order to manage and control a large number of G/L accounts in
SAP, they are arranged in account groups. Account group must be specify while
creating the G/L account

Grouping of GL A/C’s according to its nature. The account group controls

✓ The number ranges of your GL Accounts
✓ Controls field status of GL Masters

Define Accounts Group

Path: - same as above T C: /NOBD4

IMG Menu Path :- SAP Implementation Guide > Financial accounting –> G/L
Accounting –> GL Accounts –> Master Data–> Preparations –> Define Account
Groups

Select New Entries

Chart of A/c Name From A/c To A/c

A/c Group No No
7878 SCPL Share Capital A/c 100000 100099
7878 RSPL Reserves & Surplus 100100 100199

7878 SCLN Secured Loans 100300 100399

7878 UNSL Unsecured Loans 100400 100499
7878 CLPR Current Liabilities 100500 100599
7878 FAST Fixed Assets 200000 200099
7878 CAST Current Assets 200100 200199
7878 ACDN Accumulated Depreciation 200200 200299
7878 SALE Sales 300000 300099
7878 OTHR Other Income 300100 300199
7878 INCR Incr/Decr in Stock 300200 300299
7878 RMCN Raw material consumption 400000 400099
7878 PRSN Personnel staff cost 400100 400199
7878 MFRG Manufacturing Expenses 400200 400299
7878 ADMN Administrative Expenses 400300 400399
7878 INTR Interest 400400 400499
7878 DEPR Depreciation 400500 400599
Save

While assigning From & To numbers for Accounts group, starting number
1=Liabilities, 2=Assets, 3=Income and 4=Expenses category. This Account Group
represents P&L Account & Balance Sheet.

Interview Q
What does Account Group Represent?
This Account Group represents P&L Account & Balance Sheet.

Difference between GL Account group/ vendor Account group / Customer

Account Group???
Assignment for today /// do R& D

What is Pre requisite for account group?

Chart of Account

Eg : 2 only for information point of view.

Exercise :

TO COPY ACCOUNTS GROUP (within SAP software): /NOBD4

• Identify the Chart of Accounts which you want to copy. Say, for example
7878. New Chart of Accounts may be 2501
• Select Position
• Type in Chart of Accounts “7878”, Ignore Accounts Group, Enter
• “7878” Accounts Group will be displayed in proper manner.
• Select all Accounts Group one by one by clicking (by Mouse) on 1 st column
(the square box before Chart of Accounts column).
• Now, press F6
• Now it is copied to screen. Replace the existing Chart of Accounts
column (“7878”) by your new chart of accounts 2501, very carefully.
While executing this process, do not hit enter key.
• After all replacing, now hit Enter key.
• Now Save the Data.
What is a Account group and where is it used?

An Account group controls the data that needs to be entered at the time of
creation of a master record. Account groups exist for the definition of a GL
account, Vendor and Customer master. It basically controls the fields which
pop up during master data creation in SAP

RETAINED EARNINGS ACCOUNT:

What Are Retained Earnings?

Retained earnings are an important concept in accounting. The term refers to
the historical profits earned by a company, minus any dividends it paid in the
past. The word “retained” captures the fact that, because those earnings were
not paid out to shareholders as dividends, they were instead retained by the
company. For this reason, retained earnings decrease when a company
either loses money or pays dividends, and increase when new profits are
created.

Profits give a lot of room to the business owner(s) or the company

management to utilize the surplus money earned. Often this profit is paid out
to shareholders, but it can also be reinvested back into the company for
growth purposes. The money not paid to shareholders counts as retained
earnings

Retained Earnings Account. Retained Earnings Account is used to carry

forward the balance from one fiscal year to the next fiscal year. You can
assign a Retained Earning Account to each P&L account in the chart of
accounts (COA).

We maintain two types of Accounts and both are used differently in closing
procedure. For balance sheet, the balance is carried forwarded to the same
Account in the next year. But, in case of profit and loss statement, balance is
carried forward to a retained earning account in SAP and the profit and loss
Account is set to zero. we can define one or two Retained Earning
 Eg

Profit & Loss Account

To By

Expenses Ledgers Income Ledgers

Total 8,00,000 Total
10,00,000
Balancing Amount 2,00,000
(Net Profit)

This Net Profit should be

transferred to Balance Sheet
Ledger: Retained Earnings A/c.
This transfer function will done by
Key “X”

Balance Sheet
Liabilities Assets

Retained Earnings A/c

2,00,000

Define Retained Earnings Account: (OB53)

A/C’s Path: SPRO→FA (NEW)→GL A/C (NEW)→MASTER DATA→GL A/C→

PREPARATIONS → DEFINE RETAINED EARNINGS A/C Chart of Accounts:

Define Retained Earnings A/c

Path: - Same path as above T C: /NOB53
Chart of A/c Company Code 7878

P&L A/c 100100A/c No.

X
Save, (message: “Account 100100 is not created”, this means simply we are
assigning Retained Earnings Ledger Number and we have not created any
Ledger. Once we start creating General Ledger, first create this Retained
Earnings Account as it is SAP Processing Ledger.) Now, ignore the message and
enter

Here we have defined Account No. 100100, because this Retained Earnings A/c
ledger falls under Reserves and Surplus Account Group, hence we have defined
first Ledger Number of Accounts Group.( of reserve & surplus account group)

Here, ‘X’ is SAP delivered key. It activates carry forwards of Profit to Balance
Sheet and it also activates to create P&L Ledgers.

Step 7

Note : Variant means when you want to execute transaction in SAP then
there are certain field present in the screen that comes after running the
transaction, the information you fill in the screen field can be saved for future
.
the save data or screen is called varient.
9) Define Posting Period Variant T C:/NOBBO

• Open & Close Posting Periods

(Here we are opening Accounting Periods for posting vouchers. Here In-
charge will open in which month End user has to post vouchers)

SAP FI posting periods are used to open and close periods of a financial year.
Posting periods are maintained in a posting period variant that is assigned to
a company code. One posting period variant can be assigned to more than one
company code.

Posting periods can be maintained for each account type, i.e. Assets (A),
Customers (D), Vendors (K), Materials (M), G/L Accounts (S), and Contract
Accounts (V). It is not mandatory to maintain the posting periods for each
account type because by specifying account type “+” (all account types)
posting periods can be maintained for all account types in a company code.

/nobbo
Path: - SPRO>Financial A/cing>Financial A/cing Global
Setting>Ledger>fiscal year & Posting Period>Posting
period>Define variant for Open Posting
Period
Select New Entries
Variant Name
7878 Variant for 7878
Save

Open & Close Posting Periods /nob52

Maintaining Posting Periods

For technical reasons, for each posting period variant you need an entry
.+. that is valid for all account types. The columns for the account number
interval must be empty.
The period intervals defined for the .+. entry specify the periods that can
be posted to in a variant. When you enter the posting date in the
document header, the system uses the entry for the account type .+. to
check whether the period determined can be posted to. If all account
types are to be open at the same time, the minimum entry .+. is sufficient.
(Practically this posting periods will be open by each month-wise. In
the period 1 column define Current Month and Current Year and period 2
define Current Month and Current Year with ‘+’ mark in Account Type
and Save. Now End user can make entries only in that Current Month
and not permitted to post in the previous/next month. And for special
posting periods there will be no such restrictions.) Open Posting Period
for Current Month only:
 Assign posting period variant to company code
Different Company Codes can be assigned with same posting period variant
provided, all Company Codes uses the same Accounting year.

11) Assign posting period variant to company code

Path: - Same as above T C: /NOBBP

Select Position
Company code 7878
Enter
Type Company code 7878 Save

What is Posting Period Variant?

Posting period variant (PPV) is an variant that controls to open and close the
posting periods for entries.
Scenario
During fiscal year 2021, Company (Babaji) has declared the profitability to its
managements and public up to first quarter i.e 30th June, 2021. After
declaration of profitability, the profit figures should not be changed.
If we open periods April 2021 to March 2022, if users posts any transactions
with April date then the profitability figures declared will be changes. So the
SAP consultant close the posting periods from 1st April, 2021 to 30th June,
2021 and open posting periods from 1st July, 2021 to 31st March, 2022.
 To open posting periods from July 2021 to March 2022, we

represent in SAP as 4, 2021 – 12, 2022.

 So the users can post entries from July 21 to March 22, this is
called as open and close posting periods.
 Posting period variant enables to close and open posting periods
for all company codes at same time
Note : Meaning of ZZZZZZ ( infinity)
Scenario 2 :

If you want to restrict posting to particular account group,

eg SA document. Even though plus+ is open & how you going to
closed SA document, For July
Go to /n ob52
Mention :company code …… 7878
In Account type : SA check period open ( it would be 1 period) change
it to 5th period
Save.

Scenario 3
If you want to allocate the account group in posting period how to do
that ? and what are its effect.
A)
Go to /nob52
Enter : company code : 7878
In Account from & To Account ( mention the Account group that you
want) & save
But it not recommended.( reason it would take only that account group
transaction through out the year). Its always better to keep it blank or
mentioning (zzzz ie is infinity) in to account.
Note : period 3 would be used for Co secondary posting .
In FICO : table are saved at level such as BKPF/BSEG/BSIK.
Know in s4hana : table are save at ACDOCA. Know we are not
defining separate period for cost element & CO.
 Document Type: /noba7
Postion : SA
Number Range Information (click)
Enter Company code : 8787
Second Interval (click)
Click on Insert line ( Icon)
01 : 2022: 1 to 100
Save

Document types are defined at the client level so document types are apply
for all company codes. Document type key is used to classify accounting
documents and distinguish between business transactions to be posted.
Standard SAP system delivers the standard document types. So we can use
this standard document types or define new document types as per business
requirements.
Document type control account type & number range.
Note : Header level is control by document type.
& item level is control by posting key.

: (TC:/NOBA7) These Document Types are system defined. If required, we can

define our own Document Type. In Accounts language, we call types of Vouchers.
For ex: Purchase Voucher, Sales voucher, Debit Memo Voucher, Credit Memo
Voucher and the like. Once we receive the Vouchers, we mark manually the
Voucher numbers and then we make entries in computer. In SAP Language we
call Vouchers as Document Type. And these Document Types should be assigned
with No. Ranges (Without this No. Range, the system will not allow you to make
any entries.) Purpose of No. range is, the system will do automatic numbering for
all the entries. But while defining number ranges for each document type, we
have to define respective document type number while defining number ranges
in number column. These Document Types we are going to treat in A/cs Payables,
A/cs Receivables and Asset Accounting.
Step 3 :– In next screen follow the IMG menu path for defining Document
types
IMG Menu Path :- SAP Customizing Implementation Guide –> Financial A/C –>
Global Settings –> Documents –> Document Header –> Define Document types
Step B New entries
Step 4 :-
In next screen click on new entries to create new document key

Step C

Step 5 :- Update the required data

1. Document Type :– Enter unique 2 digits code
2. Number Range :– Enter number range code
3. Reverse Document Type :- Enter reverse document type key code
4. Number Range Information :- Number ranges are maintained for the
document types
5. Accounts Types allowed :– Select account type for the document type i.e
Assets, Customer, Vendor, Material, G/L Account
6. Control Data:- Select control data for the document type.

The configuration screen contains a number of fields and we will discuss them
one by one.

Properties

Number range objects, reverse document type and authorization group

configured in the properties section as explained below.
NU M BE R RA NG E

Number range object will be maintained at the document type level. Number
ranges will be maintained at the company code,

RE VE RS E D O CU M E NT T Y P E

Reverse document type maintenance is optional. If no document type

maintained, then the posting and reversal document types will be the same. If
a different document type required for reversals, then this field to be
maintained and number ranges also to be maintained at the company code
level.

A U T HO RI S A T I O N G RO U P

It allows to restrict the document type for specific objects.

Account Types Allowed

Restriction of account types mentioned below are at the client level.

ASSETS

By selecting this checkbox, a document type allows asset transactions.

CU S T O M E R

By selecting this checkbox, a document type allows customer transactions.

VE ND O R

By selecting this checkbox, a document type allows vendor transactions.

MA T E RI A L

By selecting this checkbox, a document type allows material transactions.

G /L A C CO U N T

By selecting this checkbox, a document type allows G/L account transactions.

It is not mandatory to choose all the account types or specific account types.
As per the requirements of a company you should choose respective account
types.

Control Data

It helps to restrict or apply the following checks.

NE T D O CU M E NT T Y P E

This checkbox is applicable only for accounts payable to deduct cash discounts
while booking invoices. It is optional.

CU S T O M E R/ VE N D O R CHE C K

To restrict either multiple vendors or multiple customers in a document this

checkbox to be selected. It is also possible to post multiple line items to the
same vendor.

NE G A T I VE PO S T I NG S P E R MI T T E D

By selecting this checkbox, the SAP systems helps to reverse incorrect postings
for each item to remove the effect on transaction figures.
I NT E R - CO MPA NY PO S T I N G S

To be selected to allow intercompany postings.

E NT E R T RA D I NG PA R T NE R

To be selected to allow manual input of a trading partner while booking

transactions.

Required during Document Entry

Fields enclosed below can be marked as mandatory at the document type

level.

RE F E RE N CE N U M BE R A ND D O CU ME NT H E A D E R T E X T

By selecting these checkboxes, reference number and document header texts

fields will become mandatory fields. It is also possible to maintain these fields
as either optional or required at the G/L account field status group level.

BA T C H I N PU T O N LY

To restrict document type only for batch input postings, this checkbox to be
selected. For example, if a document to be restricted for manual postings and
to allow only batch input postings, then this check box to be selected.
E XC HA NG E RA T E T Y PE F O R F O R E I G N CU R RE N CY D O C U ME N T S

Exchange rate type ‘M’ fetches automatically while booking any transaction. To
overwrite this, we can specify the exchange rate type at the document type
level, so the SAP system will not use ‘M’. If the exchange rate type is not
maintained, then the SAP system fetches the exchange rates maintained at ‘M’
level by default.

Joint Venture

D E BI T RE C. I N D I C A ND R E C. I ND . CR E D I T

These checkboxes are applicable for joint venture accounting only. To share
incurred costs, these indicators to be defined at the document type level. The
costs will be settled through periodic settlement.

Defining No. Ranges for Document Types:

TC:/NFBN1/NOBA7

(You can define in FBN1 if you know document type number directly.)

01 (system defined) and Document Type SA, both are same, stands for G L
Entries.

X1 stands for Recurring Entries (means End-user use this option to make entries
which will occur every month, like Rent payments, loan Payments, where the
End users store ready-made journal entries in SAP, and while making entries,
just they will change Date and post it.)
X2 stands for Sample Document entries. (This option will be used by End-user
for storing Provisional Entries).
Step 1
Go to document type (/NOBA7), select “position”. type Doc. Type SA, Enter.
Select SA, click on 2nd icon (Details icon). Remember No. Range 01 (system
define), now click on No. range information.

Step 2

Enter Co. Code: 7878

Select 2nd Interval (Change Interval button)
Select Interval Button (Insert Interval button)
In No. column type 01 (G L Entries))
Year: 2021 From number : 1 to number : 100
save
Note :
Nr status : blank ( once you post the transaction it will be automatically get
updated)
EX ( if you want to assign manual the number after the posting then tick mark
it or else keep it blank, the system will allocate the document number once
you post the transaction.)

Step 1
This is just for information : it is the interview question
 What is The Meaning of "Net document type"

Answer)
When you post a vendor invoice, you use the document type to specify
whether you want to use the vendor net procedure. In this procedure, the
system automatically splits the offsetting postings into the net amount and the
cash discount due. This is done when the document is posted
Eg
Say you have a vendor invoice and the payment terms are 2% discount if they
pay within 30days

when you enter the invoice with document type KN (Net doc type) then the
discount is calculated and posted to the account defined in config

Ex:

Cr Vendor $100

Dr Expense $98

Dr Discounts $2

Interview question
Can you make a field mandatory at document type level & which are those ?
A)
Yes we can make 2 field mandatory at document type level ie reference
number & Document header text.

Define Tolerance Group for G/L A/c T C :/NOBA0

SAP Tolerance Groups define posting authorizations of users in SAP ERP
system. These posting permissions define the amounts that certain groups of
accounting clerks are allowed to post. SAP Tolerance Groups determine various
amount limits for employees and predefine the maximum amount an
employee is permitted to post, the maximum amount the employee can post
as line items in a customer or a vendor account, the maximum cash discount
percentage the employee can assign in a line item, and the maximum allowed
tolerance for payment differences for the employee.

Example: we have made provisional entries as TDS Payable Rs.

5000 (Credit ), while executing payment of TDS , permitted
difference is Rs. 100 (Below case), we can execute TDS Payment
Rs. 4900 (Debit). Is allowed.Less than Rs. 4900, system will not
allow to post.
Define Tolerance Group for G/L A/c T C :/NOBA0
Path: - SPRO>Financial A/cing>G/L A/cing>Business Transaction>
Open Item Clearing>Clearing Differences>Define Tolerance Group
for G/L A/c

Here tolerance for groups of G/L account purely for open item
managed g/l clearing account. eg; GR/IR, payable a/c, other
clearing a/c which you want to clear manually or automatically.
During clearing process system considers which ever is the lowest
whether the specified amount or the percentage. Also system
 consider the lowest amount from both the conditions specified in
oba4 and oba0.

Define Tolerance Group for G/L A/c T C :/NOBA0

Note : keep tolerance group as blank, blank is also one group in

sap.
We can create this group while creating GL Account.

Select New Entries

Co.Code Group Description Debit Credit % Dr % Cr
7878 Tolerance 100 100 1 1
group for
7878
Save
Define Tolerance Group for Employees:
12a). Define Tolerance Group for Employees. TC:/NOBA4
IMG Menu Path :- SAP Implementation Guide –> Financial A/C –> G/L
Accounting –> Business transactions –> Open Item Clearing –> Clearing
Differences –> Define tolerance group for employees

(This configuration depicts permitted postings for End-users)

1. Group :- Enter four digits unique code

2. Company code :- Enter appropriate company code that you wants to define
tolerance group and currency will be automatically updated
3. Amount per document :- Enter the maximum document amount the
employees is authorized to post
4. Amount per open item account item :– Enter the maximum amount the
employees is authorized to process the open items
5. Cash discount per line item :- Enter the maximum cash discount percentage
the employee can grant per line item
6. Permitted payment difference :- Enter the amount that is permitted for
payment difference in Revenue and expense field
7. Percentage :- Enter the percentage that is permitted for the payment
difference.

Configuration step :
Select New Entries
Enter Company Code
Ignore Tol Group
In per document column enter 9999999999
In item document column enter 99999999
In percentage column enter 5%
Now Save data.

1Eg
While posting the transaction.

Rent Account Dr…….500

To Vendor Account CR……500

Note here I am assigning limit for transaction posting.

B
Payment difference are applicable at the time of making payment or receiving
the payment from customer.
2Eg:

Amount per document determines that the user has a privilege to post a
transaction maximum up to the specified amount per document/invoice.
Amount per open item pertains only to Customer/Vendor line items (F-43,F-
22) and not to G/L line items (F-02) Percentage specified in Cash discount field
determines the upper limit of discount which user is authorized to process.

This permitted payment difference apply to the open item managed g/l
clearing account and during Customer/Vendor payment clearing. During
clearing process system considers which ever is the lowest whether the
specified amount or the percentage.

Cash discount adjusted field applies during customer/vendor payment clearing.

Amount specified in cash discount adjustment will add to the already existing
discount conditions. If the payment received is less than the supposed amount
and if the difference is not more than the amount specified in this field, system
consider this as additional discount and it will reflect in the g/l assigned for
discount loss/gain.

This configuration enables end-users to make entries.(Employees means here

SAP-End Users. Through this option we can control End-Users postings per
Document. For example, if we define 1,00,000 in amount per document field,
End user will not be able to post amount more than 1,00,000 per
voucher/document.)

We can assign as per category-Accounting Clerks, Accounts Manager

(Transaction Code:/NOB57), the tolerances by defining tolerance group
will be assigned to respective category. For example: Tolerance group
ABC1 and configure the following tolerances:

(We do this authorization of SAP End user postings at the time of Go-Live.)
Accounting clerks:
 500,000 units of local currency per document

100,000 units of local currency per open item

5% cash discount

We can define tolerance group ABC2 and assign following tolerances:

Accounting manager:

1,000,000 units of local currency per document

500,000 units of local currency per open item

10% cash discount

Field Status Variant::

@Field status variant control the field of transaction at a line item level.

During document entry, field status group controls which fields are required for entry and
which fields are set to optional and suppress. The field status groups are available under field
status variant and it will be assigned to company codes in SAP.

@ Sap provides pre-defined filed status group which can be copied to create our own.
@ Field status variant can be created by following the 3-step method of variant principle.
Scenario
At the time of posting on the SAP screen, we get 70 fields approximately like quantity, Text,
Cost Center, profit center, value, date, etc.
For any postings we will have a debit entries and credit entries, so we will have 70debit
fields and 70redit fields. It is not easy to update all the 140 fields and post a document. In
order to overcome this issue, SAP has provided the option to make the fields as required,
optional and suppress.

Example : – Quantity
Suppress: – If you choose quantity as suppress, at the time of posting this quantity field will
not visible on the screen.
Required: – If you choose quantity as required, at the time of posting quantity field will
appear on the screen and you have to give value in the quantity field. Required means
mandatory, so without quantity value you cannot go to next screen.
Optional: – If you selected quantity as optional, at the time of posting the quantity field
appears on the screen and it is your choice to update value or not. Without giving value you
can go to next screen.
The field selection is not common for all accounts, it varies from account to account. For
example for sales account quantity is required and for salaries account quantity is not
required.
Important Rules of Field Status Variant
 We need to assign field status group at the time of general ledger master
record creation.
 In field status group, we need to specify which field is required, optional and
suppress.
 At the time of postings, the users gives G/L account number. The fields
appears on the screen based on field status groups assigned to G/L.
Maintain Field Status Variant T C: /NOBC4

SAP Customizing Implementation Guide -> Financial Accounting -> General

Ledger Accounting ->Business Transactions -> G/L Account Posting -> Make and
Check Document Settings ->Define Field Status Variants

Select standard FSV 0001 (Select means you have to click before 0001
column) and then
Press F6
Delete 0001, and type 7878 (Company Code) Enter

Click on Copy All Enter & Save

Select 7878 (Company Code )
Double click on “Field Status Group” (left side)
Double click on “ General Text (G001)”

Double click on ‘General Data’ (Blue Line)

Select Required Entry Radio Button for Text
Select next group icon (to the left top)
Select Required Entry for Business Area
Save
Do the same procedure for G005 also.

Double click on ‘General Data’ (Blue Line)

Select Required Entry Radio Button for Text
Select next group icon (to the left top)
Select Required Entry for Business Area
14) Assign Field Status Variant for Company Code T C:/NOBC5
Select Position
Type 7878(Company Code)
In Field Status Variant column Type 7878 (Company Code)
Save.

Step 14
Define Posting Keys in SAP /nob41

Posting Keys :– Posting key in SAP is a two digits numerical key that
determines the type of transaction entered in a line item.
Posting Keys – Scenarios
1. Standard SAP system delivers the standard posting keys, you can use
the standard posting and modify or change as per business
organization requirements
2. Posting keys in SAP controls the entries in a line item of document
entries.
3. It determines account type to post i.e. amount should be posted on
debit side or credit side.
Posting Keys Determines :-
1. Account Types ( A, D, K, M, S )
2. Type of postings i.e Debit or Credit
Account Types in SAP :-
1. Assets
2. General Ledger
3. Customer
4. Vendor
5. Material
Account Type Customer posting keys :-
Posting Account Type
Key Description Debit/Credit
Account Type General Ledger Posting Keys
Posting Account Type
Key Description Debit/Credit
40 Debit entry G/L Debit
50 Credit entry G/L Credit
Stock initial
80 entry G/L Debit
81 Costs G/L Debit
Price
83 difference G/L Debit
84 Consumption G/L Debit
Change in
85 stock G/L Debit
86 GR/IR debit G/L Debit
 Stock initial
90 entry G/L Credit
91 Costs G/L Credit
Price
93 difference G/L Credit
94 Consumption G/L Credit
Change in
95 stock G/L Credit
G/L Credit
96 GR/IR credit

Account Type Material Posting Keys

Posting Account Type
Key Description Debit/Credit
Stock inward
89 movement Material Debit
Stock outward
99 movement Material Credit
Account Type Vendor Posting Keys
Posting Account Type
Key Description Debit/Credit
21 Credit memo Vendor Debit
22 Reverse invoice Vendor Debit
24 Other receivables Vendor Debit
Outgoing
25 payment Vendor Debit
Payment
26 difference Vendor Debit
27 Clearing Vendor Debit
28 Payment clearing Vendor Debit
29 Special G/L debit Vendor Debit
31 Invoice Vendor Credit
Reverse credit
32 memo Vendor Credit
34 Other payables Vendor Credit
Incoming
35 payment Vendor Credit
Payment
36 difference Vendor Credit
37 Other clearing Vendor Credit
38 Payment clearing Vendor Credit
39 Special G/L credit Vendor Credit
Posting key successfully configured in SAP
Posting
Key Name Debit/Credit
Debit
70 asset Asset Debit
Credit
75 asset Credit

Posting key Configuration Steps :- Transaction Code – OB41 ( we would be

using predefine posting keys).

Follow the IMG Menu path

SPRO > Implementation Guide –> Finance Accounting –> Finance Accounting
Global Settings –> Documents –> Line Item –> Controls –> Define Posting Keys

If you want to create :

Step 1 :– Click on Create Icon
Step 2:- Update two digits numerical key code in the Posting key field and
update name of the posting key in the name of the posting key field
Step 3 :- Update the following data
1. Debit/Credit indicator :– Select the debit or credit
2. Account Type :- Select appropriate account type
3. Other attributes :- Select appropriate attribute i.e Sales related or Special
G/L
4. Reversal Posting Key :- Update the reversal posting key
Step 4:- click on save icon

Interview Questions :-
What is posting key and what does it control?

Posting key in SAP is a two digits numerical key that determines the type of
transaction entered in a line item.
Posting keys in SAP controls the entries in a line item of document entries
What controls the posting key?
There are 3 correct answers to this question.

currency

account

posting date

amount

company code

Answer : BDE

Document Splitting

Often this function is used to get the financial statements correctly for
segment reporting.
Splitting of account group according to the category (assets/ liability/ income /
expenses).
Document splitting enables you to draw up complete financial statements for
the following dimensions at any time:
Segments
Profit centre
Business areas
Funds
Receivables
Customer-defined dimension (customer field)
Menu IMG- Financial accounting new- GL Account new- business transaction-
document splitting- classify gl account for document splitting.

Step15
 Controlling

The SAP CO (Controlling) Module provides supporting information to

Management for the purpose of planning, reporting, as well as monitoring
the operations of their business. Management decision-making can be
achieved with the level of information provided by this module.
The Controlling (CO) component of SAP R/3 system contains all accounting
functions necessary for effective controlling for businesses.

Every organization normally have an external

and internal accounting viewpoints. The external viewpoints is represented
by Financial Accounting (FI) component and Controlling (CO) represents
the internal accounting viewpoint. FI deal with overall financial reporting and
accounting & CO deal with cost ( monitoring cost) & planning. CO component
of SAP system offers a broad selection of functional tools that can be
used to provide management accounting information that are useful for
management decision making. It unable management to determine variances
by comparing the actual data with plan data.
Do remember that Financial Accounting and Controlling are independent
components of the SAP system. The data flow from the CO component to FI
component takes on a regular basis.

Double click on Maintain control Area

Select New Entries
Controlling Area 7878 (controlling area=co. code)
Name Controlling area for 7878
Co. code to controlling Area : Controlling area same as co. code (select this
option if there is only one Co. Code. If different Co. Codes to be assigned for
the same Controlling Area, select second option.))
Currency type: 10
Currency : INR
Chart of Accounts :7878
Fiscal year Variant : 56
Cost Centre Standard Hierarchy: 7878hier
Save.
Select ‘yes’ for the message.
Enter.
Double click on assignment of Co. Code
Select New Entries
Co.Code: 4547

Save.
Double click on Activate components/control indicators
Select New Entries
Enter Fiscal year 2021
Cost Centers: Component Active (select)
Select AA: Activity type Check box
Order Management: Component Active (Select)
Select Profit Centre Check Box