SAP ERP Financials and FICO Handbook

SAP ® 

ERP Financials 

and FICO 

Handbook 

S. N. Padhi




Handbook

THE JONES AND BARTLETT PUBLISHERS SAP ® BOOK SERIES 

SAP ® R/3 ® FI Transactions 

V. Narayanan (978-1-934015-01-8) © 2007 

Upgrading SAP ® 

Maurice Sens (978-1-934015-15-5) © 2008 

SAP ® FI/CO Questions and Answers 

V. Narayanan (978-1-934015-22-3) © 2008 

SAP ® ABAP Handbook 

Kogent Learning Solutions, Inc. (978-0-7637-8107-1) © 2010 

SAP ® ABAP Questions and Answers 


SAP ® MM Questions and Answers 


SAP ® SD Questions and Answers 


SAP ® ERP Financials and FICO Handbook 

S. N. Padhi (978-0-7637-8080-7) © 2011 

For more information on this series and its titles, please visit us online at 

http://www.jbpub.com. Qualified instructors, contact your Publisher’s Representative at 

1-800-832-0034 or info@jbpub.com to request review copies for course consideration.




Handbook 

S. N. Padhi

World Headquarters 

Jones and Bartlett Publishers 

40 Tall Pine Drive 

Sudbury, MA 01776 

978-443-5000 

info@jbpub.com 

www.jbpub.com 


Canada 

6339 Ormindale Way 

Mississauga, Ontario L5V 1J2 

Canada 


International 

Barb House, Barb Mews 

London W6 7PA 

United Kingdom 

Jones and Bartlett’s books and products are available through most bookstores and online booksellers. To contact Jones and Bartlett 

Publishers directly, call 800-832-0034, fax 978-443-8000, or visit our website, www.jbpub.com. 

Substantial discounts on bulk quantities of Jones and Bartlett’s publications are available to corporations, professional associations, 

and other qualified organizations. For details and specific discount information, contact the special sales department at Jones and 

Bartlett via the above contact information or send an email to specialsales@jbpub.com. 

Copyright © 2011 by Jones and Bartlett Publishers, LLC 

All rights reserved. No part of the material protected by this copyright may be reproduced or utilized in any form, electronic or 

mechanical, including photocopying, recording, or by any information storage and retrieval system, without written permission from 

the copyright owner. 

This publication contains references to the products of SAP AG. SAP, R/3, xApps, xApp, SAP NetWeaver, Duet, PartnerEdge, 

ByDesign, SAP Business ByDesign, and other SAP products and services mentioned herein are trademarks or registered trademarks 

of SAP AG in Germany and in several other countries all over the world. Business Objects and the Business Objects logo, Business 

Objects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius and other Business Objects products and services mentioned 

herein are trademarks or registered trademarks of Business Objects in the United States and/or other countries. SAP AG is neither 

the author nor the publisher of this publication and is not responsible for its content, and SAP Group shall not be liable for errors or 

omissions with respect to the materials. 

Production Credits 

Publisher: David Pallai 

Editorial Assistant: Molly Whitman 

Production Director: Amy Rose 

Production Editor: Kat Crighton 

Associate Production Editor: Melissa Elmore 

Associate Marketing Manager: Lindsay Ruggiero 

V.P., Manufacturing and Inventory Control: 

Therese Connell 

Composition: diacriTech 

Cover and Title Page Design: Scott Moden 

Cover Image: © Gastev Roman/ShutterStock, Inc. 

Interior Images: © SAP AG. All rights reserved. 

Printing and Binding: Malloy, Inc. 

Cover Printing: Malloy, Inc. 

Library of Congress Cataloging-in-Publication Data 

Padhi, S. N. 

SAP ERP financials and FICO handbook/S.N. Padhi. 

p. cm. 

Includes index. 

ISBN 978-0-7637-8080-7 (hardcover) 

1. SAP ERP 2. Financing Corporation (U.S.) 3. Accounting—Computer programs. I. Title. 

HF5679.P23 2010 

657.0285'53—dc22 

2009037367 

6048 

Printed in the United States of America 

13 12 11 10 9 10 9 8 7 6 5 4 3 2 1

This book is dedicated to my wife, Sharmistha.

ABOUT THE AUTHOR 

A graduate in commerce and an associated member of the Institute of Chartered 

accountants of India, New Delhi, S. N. Padhi has more than 26 years of experience in 

accounting, finance, taxation, audit, and information technology. He is a participating 

SAP FICO consultant. 

vi

TABLE OF CONTENTS 

An Introduction to SAP Software 

Preface 

xi 

xiii 

Chapter 1 Interview Questions and Answers 1 

1.1 SAP-General 1 

1.2 FI-General 12 

1.3 Enterprise Structure (FI-ES) 15 

1.4 G/L Accounting (FI-G/L) 24 

1.5 Accounts Payable (FI-AP) 44 

1.6 Accounts Receivable (FI-AR) 52 

1.7 FI-AA 54 

1.8 General CO 65 

1.9 CO-CEL 70 

1.10 FI-CCA 71 

1.11 CO-PCA 79 

1.12 CO-IO 80 

1.13 CO-PA 84 

1.14 Product costing (CO-Pc) 86 

1.15 SD 87 

1.16 MM 89 

1.17 Technical Questions 91 

Chapter 2 Certification Questions and Answers 95 

2.1 Questions 95 

2.2 Answers 123 

Chapter 3 Issues and Resolutions 127 

3.1 SAP General 127 

3.2 General Ledger (G/L) Accounting 128 

3.3 Accounts Payable (AP) 135 

3.4 Assets Management (AM) 143 

vii

viii 


3.5 Cost Center Accounting (CCA) 156 

3.6 Profit Center Accounting (PCA) 156 

3.7 New G/L 157 

Chapter 4 Configuration Steps 159 


4.2 General Ledger Accounting (FI-G/L) 161 



4.5 Bank Accounting (FI-BL) 171 

4.6 Assets Accounting (FI-AA) 174 

4.7 Controlling Area (CO) 177 

4.8 Cost Center Accounting (CO-CCA) 177 

4.9 Internal Order (CO-IO) 179 

4.10 Profit Center Accounting (CO-PCA) 181 

4.11 Profitability Analysis (CO-PA) 182 

4.12 Product Costing (CO-PC) 183 

Chapter 5 User Transaction Codes 187 


5.2 Accounts Payable (AP) 192 

5.3 Accounts Receivable (AR) 199 

5.4 Assets Management (AM) 205 

5.5 Cost Element Accounting (CO-CEL) 209 


5.7 Internal Order (CO-IO) 217 



5.10 Product Costing (CO-PC) 226 

Chapter 6 FICO Quick Tour 229 

6.1 SAP General 229 

6.2 FI General 230 


6.4 AP and AR 240 

6.5 Asset Accounting (AA) 247 

6.6 CO General 252 

6.7 CEL 254


ix 

6.8 Cost Center Accounting (CCA) 255 

6.9 IO 257 

6.10 PA 258 

6.11 PCA 261 

6.12 PCC 263 

Chapter 7 Special Areas 265 

7.1 Foreign Currencies 265 

7.2 Intercompany Transactions 266 

7.3 Bank Reconciliation 269 

7.4 Lockbox Configuration 271 

7.5 Revenue Recognition 273 

7.6 Automatic Payment Program 275 

7.7 Three-Way Match 276 

7.8 P2P 277 

7.9 Vendor Down Payment and Clearing 278 

7.10 Order to Cash (OTC) 279 

7.11 Make to Order 280 

7.12 Summarization Levels in CO-PA 281 

Chapter 8 New GL 285 

8.1 Document Splitting 288 

8.2 Transaction Codes 289 

Chapter 9 Tables in the SAP System 291 


9.2 General Ledger Accounting (FI-G/L) 292 



9.5 Assets Management (FI-AA) 294 

9.6 General (CO) 295 




Chapter 10 SAP MM Configuration 297 

Chapter 11 SAP SD Configuration 301 

Index 305

AN INTRODUCTION TO SAP SOFTWARE 

SAP stands for Systems Applications and Products in Data Processing. 

SAP ® software is the leading enterprise information and management package worldwide. 

Use of this package makes it possible to track and manage, in real time, sales, production, 

financial accounting, and human resources in an enterprise. 

SAP AG is the third-largest software company in the world. Founded in 1972, SAP now 

employs more than 48,500 people in more than 50 countries. SAP global headquarters 

is located in Walldorf, Germany, and the company is listed on several stock exchanges, 

including the Frankfurt DAX and the New York Stock Exchange, under the symbol SAP. 

SAP has more than 2,400 partners, 26 industry solutions, and 12 million users at 140,000 

installations around the world. 

The following shortcuts are commonly used when working with SAP solutions. 

Action 

Enter 

Save 

Back 

Exit 

Cancel 

Help 

Execute 

Possible Values 

Current Date 

Shortcuts 

 

F11, Ctrl+S 

F3 

Shift+F3 

F12 

F1 

F8 

F4 

F4 and F2 

TABLE 1 Shortcuts 

xi

PREFACE 

This book is different from other books available on the market. The main goals of this 

book are to provide readers with a good knowledge base, to offer a better understanding 

to those new to SAP ® Financial Accounting (FI) and Controlling (CO), and to sharpen 

the skills of experienced consultants. 

While writing this book, utmost care was taken to cover the most common, complex, 

and highly interview-oriented topics of SAP FICO. In this book, you will find almost all 

sections are arranged according to the FICO submodules. The screenshots are taken 

from SAP ® R/3 ® Enterprise 4.70 and SAP ECC 6.0. 

This book is divided into the following chapters: 

n Chapter 1—Interview Questions and Answers: This chapter covers 

frequently asked questions and answers in an interview format. 

More than 224 questions and answers are presented by sub-modu le. 

n Chapter 2—Certification Questions and Answers: This chapter 

contains nearly 200 “objective type certification” questions and 

answers. This is one of the unique attributes of this book. 

n Chapter 3—Issues and Resolutions: In this chapter, I explain the 

probable solution of various production issues. Sometimes issues 

and resolutions depend on a particular SAP implementation 

environment. This is another one of the unique attributes of this 

book not found in other books. 

n Chapter 4—Configuration Steps: While implementing SAP R/3 

or SAP ERP Financials, consultants always look for sequential 

steps that need to be followed. In this chapter, I provide the 

most common object-oriented configuration steps in a sequence 

with path and transaction codes. 

n Chapter 5—User Transaction Codes: In this chapter, I provide 

the most common user transaction codes. It is expected that a 

FICO consultant know commonly used transaction codes. 

n Chapter 6—FICO Quick Tour: In this chapter, I recap various 

sub-modules of FICO in bullet-point format. This gives readers 

a high-level understanding of various sub-modules of FICO and 

is a valuable feature of this book. 

xiii

xiv 

PREFACE 

n 

n 

n 

n 

n 

Chapter 7—Special Areas: This chapter covers various areas 

of FICO that are highly important from an interview and 

implementation perspective. 

Chapter 8—New G/L: The concept of the New G/L came into 

existence from SAP ECC 5.0 versions. It has many advantages 

compared to earlier versions of SAP software. In this chapter, 

I give a high-level overview of the New G/L and how it is 

different from G/L. 

Chapter 9—Tables in the SAP System: As you are aware, all 

transactional data and configuration data is stored in various 

database tables. In this chapter, I provide various tables 

important to SAP FICO modules. 

Chapter 10—SAP MM Configuration: SAP ERP is 

characterized by one-point data entry. Once data is entered 

in one module, it flows to and affects other modules. As a 

FICO consultant, if you are working in a project where an SAP 

Materials Management (MM) module is also implemented, you 

should have a basic understanding of MM configuration. In this 

chapter, I cover some basic configuration steps. 

Chapter 11—SAP SD Configuration: Similar to Chapter 10, in 

this chapter, you will find basic configuration steps of the SAP 

Sales and Distribution (SD) module. 

I hope you will enjoy this book. All the best! 

S. N. Padhi

Chapter 1 

INTERVIEW 

QUESTIONS AND 

ANSWERS 

1.1 SAP-GENERAL 

1. What is the SAP ® implementation roadmap and what steps are involved 

in it? 

The SAP implementation roadmap is a standard process provided by SAP AG for 

smooth SAP implementation and is called the ASAP Roadmap. The ASAP Roadmap 

consists of five phases: (1) Project Preparation, (2) Business Blueprint, (3) Realization, 

(4) Final Preparation, and (5) Going Live and Support. 

FIGURE 1.1 

■ 

■ 

■ 

Project Preparation— In this phase of the ASAP Roadmap, decision-makers define 

clear project objectives and an efficient decision-making process. Here, project 

organization and roles are defined and implementation scope is finalized. 

Business Blueprint— In this phase, the scope of the R/3 implementation is defined 

and the Business Blueprint is created. The Business Blueprint is a detailed documentation 

of the customer’s requirements. 

Realization— The purpose of Phase 3 is to configure the R/3 system. The 

configuration is carried out in two steps: baseline configuration and final 

configuration. 

1

2 CHAPTER 1 INTERVIEW QUESTIONS AND ANSWERS 

■ 

■ 

Final Preparation— The purpose of this phase is to complete the final 

preparation of the R/3 system for going live. This includes testing, user training, 

system management, and cutover activities to finalize your readiness to 

go live. 

Going Live and Support— During this phase, the first early watch session should 

be held, where SAP experts analyze the system’s technical infrastructure. The 

aim is to ensure the system functions as smoothly as possible. 

2. What does system landscape mean? 

The system landscape represents the SAP system deployment at your implementation 

site. Ideally, in an SAP environment, a three-system landscape exists, 

consisting of the development server (DEV), quality assurance server (QAS), 

and production server (PRD). This kind of setup is not primarily designed to 

serve as a server cluster in case of system failure; rather, the objective is to enhance 

“configuration pipeline management.” 

DEV 

QAS 

PRD 

CUST 

QTST 

PROD 

TEST 

TRNG 

SAND 

Development 

system 

Quality assurance 

system 

Production 

system 

FIGURE 1.2 

System landscape 

The system landscape is the system structure that you have for your implementation 

project. For example, you might have a development system, quality 

assurance (QA) system, and production system. It also includes how the configuration 

change goes through these systems and what controls there are. System 

landscape mostly has to do with the systems, their servers, and so forth.

1.1 SAP-GENERAL 3 

3. What are specs? 

Specs represent specifications. In an information technology (IT) environment, you 

will find two kinds of specifications: (1) functional specifications and (2) technical 

specifications. These documents contain the business requirements, such as inputs, 

solutions, processing logic, and so on. 

Functional specification : The documentation typically describes what is 

needed by the system user as well as requested properties of inputs and outputs. 

The functional specification is business-oriented. A functional specification does 

not define the inner workings of the proposed system, nor does it include information 

for how the system function will be implemented. Instead, it focuses on what 

various outside agents (e.g., people using the program, computer peripherals, or 

other computers) might observe when interacting with the system. 

Technical specification : While the functional specification is business-oriented, 

the technical specification is system-oriented and discusses programming. 

4. How many versions of the implementation guides (IMGs) are available 

in SAP? What are they? 

There are three versions of the IMG available in SAP. These are: 

■ Reference IMG —The reference IMG contains all configuration transactions available 

for all functionalities/modules/submodules in the installed versions of 

SAP R/3. The reference IMG represents the base set of configuration options 

from which SAP functionality can be configured. All other versions of the IMG 

are subsets of the reference IMG. 

■ Enterprise IMG —The enterprise IMG only contains configuration transactions 

that are applicable to a specific company’s installation of SAP software. The 

enterprise IMG serves the purpose of filtering out configuration options that 

are not required by a company if certain modules are not implemented. 

■ Project IMG —A project IMG contains a subset of the enterprise IMG configuration 

transactions that need to be configured to complete a specific project. 

5. In SAP solutions, is it possible to have a self-defined transaction code? 

Yes, self-defined reports, transactions, and functions are possible within SAP 

solutions. There might be numerous reasons why a company would want


customized transaction codes or reports. To cater to this demand, SAP allows the 

creation of user-defined transaction codes. 

User-defined transaction codes allow the user to speed up access to specific 

reports or programs since the user no longer needs to use transaction code SE38, 

enter the program name or report name, and press Execute. Instead, the user can 

simply use a predefined transaction code that will automatically open the program. 

Customized T-codes can be created by using transaction code SE93. Follow these 

steps to create a transaction code: 

1. Name your transaction code. In this case, it is ZTEST1. 

FIGURE 1.3 

Naming a transaction code 

2. Click on the Create button and then select the relevant option in the screen that 

appears. In this case, select Program and selection screen . 

FIGURE 1.4 

Creating a transaction code


3. Click on the check mark icon at the bottom left of the screen. In the next 

screen that appears, assign a program name and selection screen and save 

your work. Now your transaction code ZTEST1 is ready for execution. 

FIGURE 1.5 

Your new transaction code 

6. What is the best practice for transporting configuration requests? How 

can you transport a configuration request? 

In standard SAP implementation, there will be three clients: (1) Development, 

(2) Quality, and (3) Production. These three clients may be located within one 

server or on different servers for each client. Configuration will be carried out in 

the Development client and transported to the Testing client. After satisfactory testing 

of the SAP R/3 system, configuration will be transported from the Development 

client to the Production client. 

If different servers are used for different clients, the request is generated in 

the Development client, which has to be released first through transaction code 

SE10. Then the basis consultant will move the request to QUALITY through STMS, 

which is really the job of the basis consultant. After thorough testing, you can again 

ask the basis consultant to transport through STMS to move the request to the 

Production client.


FIGURE 1.6 

Using transaction code SE10 

If clients are located on the same server, transaction code SCC1 is used to transport 

requests from one client to another client. For example, if in the Development 

server itself you have the golden client (a SAP-specific word used for a good client), 

i.e., DEV and one more client for Testing, you do not need to release the request in 

SE10. You can do this directly through transaction code SCC1 in the Testing client 

by giving the request number. Here, you may not require basis help. 

7. After configuration you have to transport the configuration to the 

QAS or PRD. Can you transport number ranges of documents, assets 

masters, customer masters, and vendor masters in the same transport 

request? 

No. These have to be transported separately. Number ranges are not automatically 

included in transport requests. It is easy to overlay number range objects


and get existing ranges out of the system when you transport number ranges. It 

is recommended that you do not transport number ranges, and instead set them 

up individually in each client. This is part of the cutover activities for the go-live 

checklist. 

8. How can you find the menu path when you know the transaction 

code? 

There are two ways to find the application menu when you know the transaction 

code. Note that this is valid for the Easy Access Menu, not the IMG menu. 

The first way is to enter SEARCH_SAP_MENU in OK and Command box 

and press Enter . In the next screen, enter your desired transaction code and click 

on the check mark. Now you will see the Search for a Transaction Code or Menu 

Title screen, which shows the menu path. To reach your desired location, read the 

screen from the bottom up. 

FIGURE 1.7 

System menu path 

Figure 1.7 shows the menu path for transaction code FS00. 

Another way to find the menu path is to press Ctrl+F on the SAP Easy Access 

screen, and enter the transaction code in the pop-up screen; the system will lead 

you to the menu path. 

9. How can you extend the SAP Easy Access Menu? 

User groups may ask you to extend the SAP Easy Access Menu to include menus 

or submenus within the SAP standard menu. For example, if a client has a large


amount of customer reports for their day-to-day use, they may want to include 

these reports in the SAP menu. 

Follow these steps to include a report menu in the SAP Easy Access Menu: 

1. Create your own area menu using transaction code SE43. While saving, you 

will need to assign the proper development class. The system will then create 

a transport request for your area menu. 

2. Now you will need to include your new area menu in the SAP Easy Access 

area menu (transaction code S000). Use transaction code SE43, enter transaction 

code S000 in the Area menu field, and click on the Change icon. A pop-up 

window will appear with three options: Extend, Change, and Cancel. Choose 

Extend and click on to create a new enhancement ID or use an existing 

enhancement ID. 

3. In the Edit Area Menu S000 screen, use the icons to add your area menu 

and save. The system will create another transport request. 

4. Now log off and log on again; you will find your new menu in the SAP Easy 

Access Menu. 

Similarly, you can extend the IMG menu through transaction code 

S_IMG_EXTENSION. 

10. What do you do with errors in batch data conversion (BDC) sessions? 

You use BDC to post data into SAP solutions with the help of the system. 

Sometimes, while posting data through BDC, the system will encounter problems 

and cannot post data. When the system encounters a problem, it will 

create BDC error sessions. The following are common reasons for BDC error 

sessions: 

■ Posting periods are locked 

■ Changes in master data, e.g., in general ledger (G/L) accounts, profit centers 

are locked for posting 

■ Changes in screen layout of SAP program 

These scenarios are only examples; there may be several reasons for errors. To 

process incorrect BDC sessions, you need to find out the reasons for these error 

sessions. The easiest way to do this is to analyze the BDC log. In transaction code 

SM35, select the BDC sessions in question and click on the log. The Batch input: 

Log Overview screen will appear; double-click on any of the rows of the Log Overview 

tab to see an error screen. After analyzing the error, fix it and process the BDC 

sessions.


11. Where do you find all of the transaction codes, including custom 

transaction codes? 

In SAP R/3, the TSTC table stores all of the transaction codes. Through transaction 

code SE16, you can browse all of the transaction codes. The TSTC table stores the 

standard SAP transaction codes, as well as custom transaction codes. 

12. What is gap analysis? 

The SAP R/3 system comes with predefined packages. Sometimes these predefined 

packages may not suit a client’s business requirements. In the first phase 

of implementation, the implementation team will gather all business requirements. 

A thorough analysis of the business requirements will lead to a gap between the 

business requirements and the SAP standard package. There are two ways to reduce 

the gap: (1) by changing the business process or (2) by developing new programs 

(customizing) to accommodate the client’s business process. Before the second 

phase of implementation, the SAP implementer will try to reduce these gaps by 

adopting either of these options or both. 

13. What is SAP Business One? 

In 2002, SAP AG purchased an Israel-based developer of business applications called 

TopManage Financial Systems; SAP renamed its product Business One. SAP Business 

One is targeted for small and medium enterprises (SME). Due to its low implementation 

cost and SAP support, most SME find Business One affordable compared to SAP 

R/3 or mySAP ERP. SAP Business One consists of the following core modules: 

1. Administration Module—This module is similar to the IMG menu in SAP R/3, 

where configuration is performed . 

2. Financials Module—This module takes care of an entity’s accounting needs; 

this is similar to FICO of R/3. 

3. Sales Opportunities Module—This is where existing customers and potential 

accounts are structured and tracked. 

4. Sales Module—Module where orders are entered, shipped, and invoiced; this 

is similar to the SD module of R/3. 

5. Purchasing Module—Module where purchase orders are issued and goods are 

received into inventory; this is similar to the MM module of R/3. 

6. Business Partners Module—Module where business partners (customers, 

vendors, and leads) are contacted and maintained. 

7. Banking Module—Like the SAP R/3 banking module, this module records 

payments and receipts.


8. Inventory Module—This module, integrated with the purchase module, helps 

inventory evaluation. 

9. Production Module—Module that takes care of production processes. 

10. MRP Module—Module that determines purchase requirements and checks 

product or material availability. 

11. Service Module—This sub-module handles contact management for after-sale 

service. 

12. Human Resources Module—Module where employee information is kept; similar 

to the HR module in R/3. 

13. Reports Module—Helps to build new reports. Here we will find delivered 

reports. 

14. How can you configure the FICO module without using the IMG menu? 

As a functional consultant, you will have authorization to use the IMG menu, 

subject to your user role. However, from an academic point of view, it is good to 

know how you can configure the FICO module without using transaction code 

SPRO. You can do so by invoking the following transaction codes, which are area 

menu transaction codes. You may find these types of transactions through transaction 

code SE43. 

■ ORFB (Financial Accounting [FI]) 

■ ORFA (Asset Accounting [AA]) 

FIGURE 1.8 

AA


FIGURE 1.9 Cost and revenue element accounting 

15. What is the International Demonstration and Education System (IDES)? 

IDES is a sample application with sample master data and standard configuration 

provided for faster learning and implementation. For example, the following FI 

company codes are in IDES. (These are just examples; there are many more.) 

FIGURE 1.10 

IDES company codes 

16. Describe the major areas within the SAP environment. 

The SAP environment consists of (1) configuration and (2) application. 

1. Configuration—Configuration represents maintenance of settings to support 

business requirements through the IMG menu. 

2. Application—This supports the handling of day-to-day activities through the 

SAP Easy Access Menu.


17. Describe the data types that can be used in SAP solutions. 

There are three types of data in SAP: (1) Master data–Customer master, Vendor 

Master, and Assets Master, (2) Transactional Data–Purchase, Sale, Payment and 

Receipts, and (3) Table Data–Document Type SAP Delivered Data, and so on. 

18. What are the highest organizational units in Sales and Distribution 

(SD), Materials Management (MM), Production Planning (PP), Financial 

Information (FI), and Controlling Area (CO)? 

1. SD—Sales Organizations 

2. MM—Plant 

3. PP—Plant 

4. FI—Company Code 

5. CO—Controlling Area 

1.2 FI-GENERAL 

19. When you copy the chart of accounts (COA), only one financial statement 

version (FSV) is being copied. However, a COA can have more than 

one FSV. Why does copying the COA allow only one FSV? 

An FSV corresponds to the COA, wherein individual (operational) accounts are 

assigned to corresponding financial statement items on the lowest level of the FSV. 

However, in case of rollup of the account, it is not possible to copy all of the FSVs. 

You will have to manually create multiple FSVs, depending on the financial statements 

that are necessary for the organization. 

20. Describe some generally used FI submodules. 

■ 

■ 

FI-G/L —FI-G/L submodule; records all account data including all postings happening 

to subsidiary ledgers. 

Accounts Receivable (FI-AR)—This submodule records all transactions relating to 

the customer. FI-AR is treated as a subsidiary ledger of FI-GL. All transactions 

relating to this module are recorded in a summary form in FI-GL.

1.2 FI-GENERAL 13 

■ 

■ 

■ 

Accounts Payable (FI-AP)—Like FI-AR, this submodule records transactions 

relating to vendors and is summarized in FI-GL. 

Special Ledger (FI-SL)—This submodule takes care of special reporting 

requirements of an entity by providing G/L based on user-defined fields. 

FI-AA— The FI-AA submodule takes care of recording transactions relating 

to assets. Here assets mean both tangible and intangible assets. FI-AA is also 

treated as a subsidiary ledger. 

21. What information will not be copied to a new company code when you 

copy the company code? 

All the organizational global master data for a company code will be copied to the 

new company code upon using the copy function except for the transactional data. 

22. Can one group COA be assigned to two operational charts? 

A COA is a variant. You can use a variant to N number of organizational objects. 

First, COA is a variant, then a group COA. You may use the same COA as an operational 

COA and a group COA. This assignment is done via transaction code OB13. 

A group COA can be assigned to any number of company codes. While creating the 

G/L accounts of an operational COA, you need to key the group COA. This way, 

you are making a relation between the operational COA and the group COA. 

FIGURE 1.11 

COA


FIGURE 1.12 

G/L account master 

23. What is accrued cost? 

Operating expenses are often allocated differently in financial accounting than in 

cost accounting. If, for example, an expense incurred in external accounting covers 

a whole year, you must assign a proportion of such expenses to each individual cost 

accounting period. In this process, you distribute irregularly occurring expenses, 

according to cost-origin, to the months in which they are incurred. This allows you 

to avoid irregularities within cost accounting. Costs allocated in this manner, such 

as yearly bonuses, are termed accrued costs. 

24. What is the difference between the Enjoy SAP document entry screens 

(FB50, FB60, FB70) and the old general posting transaction? 

The SAP Enjoy screens are created to expedite data entry for GL/AR/AP postings. 

In the old FB01 screen, users are required to manually enter document types and 

posting keys to determine the nature of postings. In Enjoy SAP data entry screens, 

these are defaulted via a configuration table so that the user just has to choose

1.3 ENTERPRISE STRUCTURE (FI-ES) 15 

debit/credit and the system will determine whether the entry is a vendor/customer 

invoice/credit memo or G/L journal. 

25. What is the credit control area? How is it related to the company code? 

Like the company code, the credit control area is an SAP entity through which 

you set and control a customer’s credit limit. There is one credit control area per 

company code. A credit control area may have more than one company code. 

A customer’s credit limit can be set at the credit control area level or across the 

credit control area. 

26. Explain the relationship between the Sort key and the Assignment field. 

The Sort key defines the field(s) used to populate the Assignment field when a 

document is posted in the G/L. The Assignment field is used as a sort criterion 

when displaying G/L account line items. 

27. Do substitution and validation work the same way when parking a 

document and posting a document? 

No. Substitution and validation work in different ways when parking a document 

or posting a document. 

Sequence Posting Parking 

1 Substitution Validation 

2 Validation Substitution 

TABLE 1.1 

For more information, see OSS Note: 158739. 

1.3 ENTERPRISE STRUCTURE (FI-ES) 

28. Tell me about the FI organizational structure. 

The highest entity in the FI organization is Company, followed by Company 

Code. Company represents an entity that consists of one or more Company


Codes below it. Company Code represents the smallest entity for which you are 

preparing a financial statement of account for external reporting purposes. 

Client 800 

Relation 

Company A Company B Company C 

1 

: 

N 

1 

: 

N 

Company Code: 

B100 

Company Code: 

B200 

Company Code: 

B300 

FIGURE 1.13 

A company and its company code 

Figure 1.13 shows a typical example of the FI organizational structure in mySAP 

ERP Financial. 

29. How many normal and special periods will be there in a fiscal year, and 

why would you use special periods? 

In general, there are 16 posting periods in a fiscal year. Of these 16 posting periods, 

there are 12 normal periods and 4 special posting periods. Special posting periods 

are used for book adjustments, tax adjustments, audit corrections, and so forth. 

Special posting periods are part of the 12 th normal period. 

30. Why and when would you use a year-specific fiscal year variant? 

The year-specific fiscal year variants are used in two cases. The first is when 

the start and end dates of the posting periods differ from year to year, such as 

when there are 365 days in a fiscal year regardless of leap year. The second case 

is when one fiscal year has fewer posting periods than the others (shortened 

fiscal year).


31. There is a Company field in the company code global settings. The SAP 

R/3 help says that it is used for consolidation. You can use the group 

COA to do the same. What is the significance of this field? 

A company is an organizational unit that is generally used in the legal consolidation 

module to roll up financial statements of several company codes. A company may 

have one or more company codes. If you are going for consolidation, you need to 

enter the six-character alphanumeric company identifier that relates to company 

codes for which you are consolidating accounts. Company codes within a company 

must use the same COA and fiscal year, and for consolidation purposes, you use 

the group COA where you link the operating COA by entering the G/L account 

number of the group COA in the G/L account of the operating COA. 

In the SAP system, consolidation functions in financial accounting are based 

on companies. A company comprises one or more company codes. For example, 

Company A has four company codes, located in different states and/or countries. 

When Company A wants to consolidate the accounts, it will give the common list 

of accounts, which in turn calls the group COA. The group COA is used to define 

and list the G/L account uniformly for all company codes. 

32. What is the difference between the company and the company code? 

A company is the organizational unit used in the legal consolidation module to roll 

up financial statements of several company codes. 

The company code is the smallest organizational unit for which a complete, 

self-contained set of accounts can be drawn up for purposes of external reporting. 

A company may be assigned to n number of company codes. 

33. What is a fiscal year variant? 

A fi scal year variant is a variant that holds parameters for a financial year, such 

as how many posting periods a fiscal year has or whether the fiscal year is year 

dependent. The fiscal year determines the number of posting periods, which are 

used to assign business transactions. The fiscal year may be year dependent or 

year independent. In SAP solutions, you will find four types of fiscal year variants: 

(1) year dependent, (2) year independent, (3) calendar year, and (4) shortened 

fiscal year:


FIGURE 1.14 

Fiscal year variant 

1. Year-dependent fiscal year—A year-dependent fiscal year is a fiscal year that is 

applicable for a particular year, such as 2008 or 2009. By checking the check box 

in the Year-dependent column, you will mark a particular fiscal year as year 

dependent. In Figure 1.14, fiscal year variant R1 and WK are year dependent. 

2. Year-independent fiscal year—A year-independent fiscal year is a fiscal year variant 

that is applicable for all subsequent years. All fiscal years are year independent 

unless you check the Year-dependent check box. 

3. Calendar fi scal year—A calendar fiscal year is a fiscal year that starts on the 

first day of a year (i.e., January 1, 2009) and ends on the last day of the year 

(i.e., December 31, 2009). A calendar fiscal year is always year independent. 

4. Shortened fiscal year—This is a fiscal year that has fewer normal periods. 

A shortened fiscal year is always year dependent. 

34. What do you mean by year dependent in fiscal year variants? 

A year-dependent fiscal year variant is the financial year for which the configuration 

settings are valid for that particular financial year. You generally use a 

year-dependent financial year when the preceding financial year or succeeding 

financial year is a shortened financial year. 

35. What do you enter in company code global settings? 

Company code global settings are populated through transaction code OBY6. 

Company code global settings are where you can assign different types of variants 

that control various parameters for a company code.


FIGURE 1.15 

Company code global data 

■ 

■ 

■ 

■ 

■ 

■ 

■ 

■ 

■ 

FSV—Field status variant 

PPV—Posting period variant 

COA 

Group COA 

Enabling business-area-wise financial statement 

Negative posting allowed 

Company is productive or not productive 

Maximum exchange deviation 

Sample account variant 

36. What does the screen of a COA contain? 

You can create and maintain a COA through transaction code OB13. This screen 

controls the following parameters for a COA:


■ 

■ 

■ 

■ 

■ 

■ 

■ 

COA ID 

Name 

Maintenance language 

Length of the G/L account number 

CO integration 

Group COA (Consolidation) 

Block indicator 

FIGURE 1.16 

COA 

37. What is field status group (FSG) and what does it control? 

FSG represents the grouping of various fields in a certain logical way. There 

are various types of FSGs used in SAP solutions. These are: FSG for G/L master, 

FSG for customer master, FSG for vendor master, and FSG for posting a 

transaction. 

FSG for G/L master controls which fields allow input while creating the G/L 

master. Similarly, vendor and customer FSG controls which fields allow input while 

creating the vendor and customer masters. Finally, the FSG attached to a company 

controls which fields allow input while posting a transaction.


■ 

■ 

A field may have one of the following statuses: 

Suppressed 

■ 

■ 

Display 

Optional 

Required 

38. What is an account group and what does it control? 

An account group is meant for further grouping of the COA for presentation of the 

financial statement of account. Account groups (created using transaction code 

OBD4) determine which fields allow input while creating the G/L master record. 

It is necessary to have at least two groups, such as one for balance sheet (B/S) and 

another one for profit and loss (P&L) A/C. It controls: 

■ Number ranges of G/L A/C 

■ Field status of the G/L master record 

FIGURE 1.17 

G/L account groups 

Figure 1.17 shows the account group configuration of the SAP standard INT 

COA. You can observe that account groups are defined for chart of account INT, 

and you can see the number range of the G/L Master assigned to the account group. 

To find out the attached field status of a particular group, select any of the groups 

and click .


39. What are the country and operational COA? Why do you use the 

group COA? 

The operational COA is used for accounting of business transactions for day-to-day 

activities. It is mandatory for a company code. 

The country COA is used for specific legal requirements of each country. It is 

optional. 

The group COA is used for consolidation of company codes. 

Depending upon the configuration, the same COA may be an operational COA, 

a country COA, or a group COA. 

40. What does the FSG assigned to a G/L master record control? 

An FSG consists of grouping various field statuses. It controls what fields are ready 

for input while posting a transaction. A particular field may be required, suppressed, 

or optional. 

FIGURE 1.18 

G/L Account master 

41. What is a business area? Can you assign it to a company? 

The business area is an organizational unit of financial accounting that represents 

a separate area of operations or responsibilities within an organization 

and to which value changes recorded in financial accounting can be 

allocated. 

Business areas are used in external segment reporting (over and above 

company codes) based on the significant areas of operation (for example, product 

lines) of a business enterprise. A segment is an isolated area of activity.


The business area will not be assigned to any company code. It is available 

at the client level. All company codes under the same client can use the same 

business areas. You can restrict a business area for a company code through 

validation. 

42. What are FSVs? 

A balance sheet or profit and loss statement is called an FSV. FSV represents 

a variant that is configured to portray the financial statement. The FSV 

provides a picture of the financial position of an entity at a particular point 

in time (usually at the end of a reporting period). The transaction code for 

configuring FSV is OB58. 

FIGURE 1.19 

FSV 

43. How are year-dependent fiscal year variants usually used? 

The year-dependent fiscal year variants are used when the start and end dates of 

the posting periods differ from year to year and when one fiscal year has fewer 

posting periods than the others (shortened fiscal year).


44. What is the difference between a participating and nonparticipating 

currency? 

A participating currency is the currency of a country participating in the European 

Economic and Monetary Union (EMU). Those countries currently include Austria, 

Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, 

Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. 

A nonparticipating currency is the currency of a country not participating in 

the EMU. 

1.4 G/L ACCOUNTING (FI-G/L) 

45. What is open item management? 

Open item management means that a line item needs to be cleared against 

another open item. At a particular point, the balance of an account is the sum of all 

open items of that account. Generally, you make these settings in the G/L Master for 

all clearing accounts, such as a Goods receipts and Invoice receipts (GR IR) account, 

customer account, vendor account, or bank G/L account, or all accounts except the 

main bank account. Open item managed accounts always have line item management. 

You can switch open item management on and off through transaction code FS00. 

46. What are the types of currencies? 

The following currencies are used in SAP solutions: 

■ 

■ 

■ 

■ 

■ 

Local currency— This is company code currency, which is used for generating 

financial statements for external reporting. Sometimes it is called operating 

currency. 

Group currency —Group currency is the currency that is specified in the client 

table and used for consolidation purposes. 

Hard currency —Hard currency is a country-specific second currency that is used 

in countries with high inflation. 

Index-based currency —Index-based currency is a country-specific fictitious 

currency that is required in some countries with high inflation for external 

reporting (for example, tax returns). 

Global company currency —Global company currency is the currency that is used 

for an internal trading partner.

1.4 G/L ACCOUNTING (FI-G/L) 25 

47. Are any FI documents created during purchase order (PO) creation? If 

yes, what is the entry? 

During PO creation (using transaction code ME21N), no FI document will be created. 

However, in CO, there can be a commitment posting to a cost center according to 

configuration. The offsetting entry is posted at the time of GR. 

48. There are many banks in a house bank. If a payment is to be made from 

a particular bank G/L account, how is it carried out? 

There can be several accounts in one house bank. A house bank is represented by 

a house bank ID and a bank account is represented by an account ID. While creating 

the account ID, you are assigning a G/L account for outgoing payment. When 

making payment, you will select the house bank ID and account ID, which in turn 

determines from which G/L account payment will be disbursed. 

FIGURE 1.20 

House bank 

49. What is the difference between Account Assignment Model (AAM), 

recurring entries, and sample documents? 

A A M : A reference for document entry that provides default values for posting 

business transactions. An AAM can contain any number of G/L account items


and can be changed or supplemented at any time . Unlike sample documents, the 

G/L account items for AAMs may be incomplete. 

Recurring entries : A periodically recurring posting will be made by the recurring 

entry program on the basis of recurring entry original documents. The procedure 

is comparable to a standing order by which banks are authorized to debit rent 

payments, payment contributions, or loan repayments. 

Sample documents : A sample document is a special type of reference document. 

Data from this document is used to create default entries on the accounting 

document entry screen. Unlike an accounting document, a sample document does 

not update transaction figures but merely serves as a data source for an accounting 

document. 

50. In the G/L master you have the options Only balances in local crcy and 

Account currency. What do these mean? 

Account currency is the currency assigned to the G/L account. If you decide that 

you want to maintain company code currency, then you can post a transaction in 

any currency in that account. If you want to maintain separate currency for that 

G/L, note that there will be a difference because of the conversion rate. 

Some G/L accounts can’t be maintained on an open item basis and can’t be in 

a foreign currency, such as clearing accounts or discount accounts, etc. In that case, 

you can specify Only balances in local crcy to show the balance in local currency. 

FIGURE 1.21 

G/L Account master


51. How many charts of account can be attached to a company code? 

A maximum of three charts of account can be assigned to a company code: 

(1) operational COA, (2) group COA, and (3) country COA. 

52. What are substitutions and validations? What is the precedent? 

Validations are used to check the presence of certain conditions. It returns a message 

if the prerequisite check condition is not met. 

Substitutions are similar to validations. They actually replace and fill the field 

with values behind the scenes without the user’s knowledge, unlike validations 

that create on-screen messages for the user. 

53. What are special periods used for? 

The special periods in a fiscal year variant can be used for posting audit or tax 

adjustments to a closed fiscal year. The logic behind the use of special periods is 

to identify and have control over transactions after the closing of normal posting 

periods. 

54. What is a shortened fiscal year? When is it used? 

A shortened fiscal year is a financial year that has fewer than 12 normal posting 

periods. This type of financial year is used for shifting an accounting period from 

one financial period to another financial period. For example, say Company X 

was following accounting period Apr xxxx to Mar xxxx+1, and has now decided 

to follow accounting period Jan xxxx to Dec xxxx. Now the current accounting 

period duration is only 9 months, i.e., from Apr xxxx to Dec xxxx, which is less than 

12 months. This type of fiscal year is called a shortened fiscal year. 

55. What are posting periods? 

A posting period is a period of time in which you are posting a transaction. It may 

be a month or a week. In the fiscal period configuration, you define how many 

posting period a company may have. A posting period controls both normal and 

special periods for each company code. It is possible to have a different posting


period variant for each company code in the organization. The posting period is 

independent of the fiscal year variant. 

56. What are document types and what are they used for? 

Document type is nothing but types of vouchers containing line items. Several 

business transactions can be identified within a particular document type. The 

document type controls: 

■ Document number ranges 

■ Header part of document 

■ Line item level of the document 

■ Filing of physical document 

Figure 1.22 shows the standard document types for SAP solutions. 

FIGURE 1.22 

Document types 

However, if SAP standard document types are not sufficient, you can create 

your own using transaction code OBA7. 

57. What is an employee’s tolerance group? Where is it used? 

An employee’s tolerance group controls the amount that is to be posted. Tolerance 

groups are assigned to user IDs, which ensures that only authorized persons can


make postings. By defining the employee’s tolerance group, you are restricting 

employees from entering certain transactions for which they are not authorized. 

This basically controls who is authorized for what amount. 

FIGURE 1.23 

User tolerance group 

An employee’s tolerance group limit controls: 

■ 

■ 

■ 

Up to what amount per line item an employee can post 

Up to what amount per document an employee can post 

Allowable payment difference an employee can accept 

58. What are posting keys and what is the purpose of defining them? 

Posting keys determine whether a line item entry is a debit or a credit, as well as 

the possible field status for the transaction. Posting keys are delivered in the SAP 

solution. If you want to change posting keys, such as making additional fields 

optional on payment type, the best possible action is to copy the posting key that 

needs to be modified and then modify it. Figure 1.24 shows the standard posting 

keys in SAP solutions.


Customers 

01 

02 

03 

04 

05 

06 

07 

08 

09 

11 

12 

13 

14 

15 

16 

17 

18 

19 

Vendors 

21 

22 

23 

24 

25 

26 

27 

28 

29 

31 

32 

33 

34 

35 

36 

37 

38 

39 

40 

80 

81 

83 

84 

85 

86 

G/L 

50 

90 

91 

93 

94 

95 

96 

FIGURE 1.24 

Standard posting keys 

59. How many FSVs can be assigned to the company code? 

There is no such restriction of assignment of FSV to company codes. You can assign 

as many FSVs as you want to the company code. 

60. What is a reconciliation ledger? Can you directly enter documents in 

that A/C? 

Reconciliation ledgers are control ledgers of sub ledgers. When you post items to a 

subsidiary ledger, the system automatically posts the same data to the G/L. Each 

subsidiary ledger has one or more reconciliation accounts in the G/L. You can’t use 

reconciliation accounts for direct postings. The sum of balances of sub ledgers will 

be equal to the total in the reconciliation ledgers . 

61. What are the segments of the G/L master record? 

There are two segments in the G/L master: (1) COA segments and (2) company 

code segments. COA segments hold data that can be used by any company codes


using the same COA. Company code segments contain information that is specific 

to a company code. 

COA tabs are: 

■ Type/Description 

■ Keyword/Translation 

■ Information 

Company code segment tabs are: 

■ Control Data 

■ Create/Bank/Interest 

■ Information 

62. What are residual payment and part payment? 

Residual payment : This clears the original invoice with the incoming amount and 

creates a new open line item for the remaining outstanding amount. 

Part payment : This leaves the original invoice amount and creates a new line 

item for the incoming amount. In case of partial payment, both the original (invoice) 

entry and the payment entry will appear as open items. 

These situations arise when you don’t receive full payment against an 

invoice. 

63. What are internal and external number ranges? Why is it generally not 

a good idea to have external numbering on transactions? 

Internal number ranges : The document number will be generated by the system 

automatically in serial order and will allot the next available progressive 

number. This reduces the manual involvement of the user. The number must be 

numerical. 

External number ranges : While entering a transaction, the document number 

needs to be keyed in by the end user. The system will not automatically insert a 

number in this case. The user can pick the number randomly. Note that it can be 

alphanumeric.


FIGURE 1.25 

Using document number ranges 

A number range can be either year dependent or year independent. In 

Figure 1.25, all the number ranges are year dependent. For year-dependent 

number ranges, you will define the document number range for each new accounting 

year as a year-end activity. 

You can define a number range as year independent by keying 9999 in the Year 

column of a number range. 

Entering the document number manually for each SAP financial posting is time 

consuming and risky for booked transactions. The transaction code for configuring 

the document number range is FBN1. 

64. What are the customization steps for cash journals? 

The following steps are required for customizing cash journals: 

1. Create a G/L account for cash journals (T-code FS00). 

2. Define the document type for cash journals (T-code OBA7). 

3. Define the number range intervals for cash journals (T-code FBCJC1). 

4. Set up the cash journals (T-code FBCJ0).


5. Create, change, and delete business transactions (T-code FBCJ2). 

6. Set up print parameters for the cash journals. 

With transaction code FBCJ0, you are assigning G/L accounts to the cash 

journal. You can assign multiple cash journals to one G/L account where cash 

journal currencies are different. Otherwise, the assignment will be 1 to 1. 

65. What is the main purpose of parking a document? Why would you 

use this? 

Parking documents is used to temporarily park or store a document until it is 

approved by an authorized person. The following two cases demonstrate how a 

parked document is usually used: 

1. When the end user has no authorization to enter a particular document like 

vendor payment, vendor invoice, etc., into the system, he can temporarily save 

the document in the system’s memory. 

2. When the end user doesn’t have enough information, he can park documents in 

the system’s memory until he has the information to complete the document. 

The document number for the parked document will be generated in the same 

way as for a regular document. A parked document can be deleted from the system’s 

memory if you feel that what you entered is wrong. Once you post the parked 

document into books of accounts as a normal document, the document number 

will become the regular document. The T-code for creating a parked document 

is F-65. 

66. What is a baseline date? Where is it used? Can it be changed? 

A baseline date is used to determine the due date of a line item, and is used for 

dunning programs, interest calculation, and automatic payment programs. You 

can configure the baseline date with T-code OBB8. The baseline date can be one of 

the following dates: 

■ Transaction date 

■ Posting date 

■ Document date 

■ Entry date


FIGURE 1.26 

Payment terms 

While entering a transaction, the baseline date is automatically populated from 

the payment terms; however, you can change it by entering another date. 

67. What is a special G/L transaction? 

Special G/L transactions are transactions that are not normal business transactions 

with your business partners. These are generally shown in different control 

ledgers and are not grouped with the normal transactions. They include bills 

of exchange, down payments, bank guarantees, and provisions for doubtful 

debts. 

68. Why do you use special-purpose ledgers (SPLs)? 

SPLs are used for customer-defined ledgers, and contain information for reporting 

purposes. The customer-defined ledger can be used as the G/L or as a sub ledger 

and may contain the account assignments desired. The account assignments 

can be either SAP dimensions from various applications or customer-defined


dimensions . You can use the SPL for statutory reporting or management reporting 

purposes. It also helps in doing single-entry, adjustment posting, such as income 

tax depreciation. 

69. After entering a document, can you delete the entry? Can you change 

the document? Which fields cannot be changed? 

After posting a document, you cannot delete the document. However, you can 

change certain fields like cost objectives, reference texts, etc. 

70. Why and when would you use business areas? 

Business areas in SAP solutions are used to differentiate transactions originating 

from different points/lines/locations in business. Take a look at an example: 

Company ABC has three company codes. These three company codes are doing 

similar business selling TVs and laptops but on different continents. Now ABC 

wants to have a balance sheet and P&L account based on products. In this case, ABC 

will create a product-wise business area, which will solve its requirement. 

The advantages of using the business area are: 

■ You can use these business areas if other company codes require the same 

business areas. 

■ The configuration is simpler, as in the case of the company code, you would be 

required to go through the entire configuration of creating COAs, fiscal year 

variants, posting period variants, and so on. With the business area option, 

you just need to attach it to the company code and the rest of the details in 

the business area are attached by default from the company code you are 

using it in. 

■ Using the options in CO (Enterprise CO, Profit Center Accounting [EC-PCA]), 

you can even draw up balance sheets and PL statements for the business 

areas. 

This example demonstrates when the company wants to separate entries according 

to the lines of business it operates. Another case could be when the company 

wants to find out the profitability of its operations in various cities and differentiates 

these cities into business areas.


71. How does FI-MM integration take place? Please explain in detail. 

FI-MM integration is how the G/L account will be updated when you are carrying 

an inventory-related transaction. For convenience, you may divide the process into 

three areas: (1) Organization structure dependent, (2) material master dependent, 

and (3) transaction dependent. Account determination will be carried out depending 

upon these three factors. 

Organization structure dependent: 

■ Valuation level — It is an organization structure, which determines at which level 

valuation will be done for material. Valuation can be done at plant level or 

company code level. Valuation must be at plant level if you want to use the 

application component PP or Costing, or if the system is an SAP Retail system. 

The decision you make is valid for the entire client. It is recommended that you 

set material valuation at plant level. 

■ Valuation area — The valuation area is a component of valuation level. Suppose 

you have created the valuation level at the plant level and there are several 

plants at the company code level; each plant is a valuation area for the purpose 

of inventory. 

■ Valuation grouping code — The valuation grouping code is a set of valuation areas 

that are grouped together for the purposes of accounting. Through the account 

determination process, it will be related to the COA. The valuation grouping 

code makes it easier to set automatic account determination. Within the COA, 

you assign the same valuation grouping code to the valuation areas you want 

to assign to the same account. Valuation grouping codes either reflect a fine 

distinction within a COA or correspond to a COA. Within a COA, you can use 

the valuation grouping code. 

Material master dependent: 

■ Valuation class —This is the assignment of a material to a group of G/L accounts. 

Along with other factors, the valuation class determines the G/L accounts that 

are updated as a result of valuation-relevant transactions or events, such as a 

goods movement. The valuation class makes it possible to: 

■ Post stock values of materials of the same material type to different G/L 

accounts 

■ Post stock values of materials of different material types to the same G/L 

account


■ Material type —This groups together materials with the same basic attributes, 

such as raw materials, semifinished products, or finished products. When creating 

a material master record, you must assign the material to a material type. 

The material type you choose determines: 

■ Whether the material is intended for a specific purpose, such as a configurable 

material or process material 

■ Whether the material number can be assigned internally or externally 

■ Account category reference — The account category reference is a combination 

of valuation classes. Exactly one account category reference is assigned to a 

material type. The link between the valuation classes and the material types is 

set up via the account category reference. In the standard system, an account 

reference is created for each material type. The account category reference is 

in turn assigned to exactly one valuation class. This means that each material 

type has its own valuation class. 

Transaction Dependent: 

■ Movement types —This is a classification key indicating the type of material 

movement (for example, goods receipt, goods issue, or physical stock transfer). 

The movement type enables the system to find predefined posting rules determining 

how accounts of a financial accounting system (stock and consumption 

accounts) are to be posted and how the stock fields in the material master record 

are to be updated. 

■ Transaction/Event key— This is a key allowing the user to differentiate between 

the various transactions and events (such as physical inventory transactions 

and goods movements) that occur within the field of inventory management. 

The transaction/event type controls the filing/storage of documents and the 

assignment of document numbers. Some important transaction keys are BSX, 

GBB, and WRX. 

Using the organization dependent, material master dependent, and transaction 

dependent areas, you determine the inventory management requirements, 

which are: 

■ Whether changes in quantity are updated in the material master record . 

■ Whether changes in value are also updated in the stock accounts in financial 

accounting . 

FI-MM integration mapping is stored in table T030. For a better understanding, 

use transaction code SE16.


FIGURE 1.27 

Table T030 

Figure 1.27 shows how G/L accounts are assigned to various combinations of 

MM transactions. 

72. What does the FSG assigned to the G/L master record control? 

It controls what fields are displayed at the time the G/L master is created. Specifically, 

the FSG controls whether or not particular fields need to be filled. The available 

options are: Required, Optional, and Suppressed. 

73. What is a house bank, bank key, bank ID, and account ID? 

A house bank represents a branch of a bank or a bank itself. A house bank may 

consist of more than one account. 

A bank key is a unique key used by a bank for the transfer of money from one 

bank to another online. Each key represents a particular bank branch. Generally, 

you will use SWIFT codes as the bank key. 

A Bank ID is an ID for house banks that the company code uses for transacting 

business. 

A n Account ID represents a particular account at a particular branch. Let us 

assume you have three accounts at the ICICI Bank Vashi, Mumbai. In this situation, 

the house bank will be ICICI Bank, Vashi, Mumbai. Individual accounts represent 

an account ID.


74. How do you identify a document? How many line items can one 

document have? 

A document is identified through the company code, document type, and document 

number. Every document in FI must have at least 2 line items, with a maximum of 

999 line items. However, this limitation has been removed in SAP ECC 6.0. 

75. What are some examples of standard document types? 

The standard document types provided in SAP solutions are: SA—General entry, 

DA—Customer document, KA—Vendor document, DZ—Customer payment, and 

KZ—Vendor payment. You can create new document types using T-code OBA7. 

76. How do you control document line item fields? 

The document line item fields are controlled through the field status group assigned 

to the G/L master and the field status of posting keys. 

77. Can several companies use one posting variant? 

Yes, since the posting period is a variant that can be used by one or more company 

code. If one posting period variant is used by several company codes, they should 

follow the same opening and closing of posting periods. 

78. What is a tolerance group? 

A tolerance group is a variant that restricts the user from posting certain transac tions 

that they are not authorized to do. On the other side, a tolerance limit for customers 

and vendors determines what variations would be allowed while clearing an open 

item. There are four types of tolerance group: (1) employee tolerance, (2) G/L account 

tolerance limit, (3) customer tolerance limit, and (4) vendor tolerance limit. 

79. When the currency of the cash journals are the same, is it possible to 

attach more than one cash journal to one G/L account? 

No. When cash journal currencies are the same, you must assign a separate G/L 

account for each cash journal. However, when cash journal currencies are different, 

you can use one G/L account for more than one cash journal.


80. How do you reverse cleared documents? 

A cleared document cannot be reversed until you make it an open item. To reverse 

a clear document, follow these steps: 

1. Reset and reverse the cleared document by breaking the document 

relationships and reversing it. The path is: Accounting ® Financial 

Accounting ® C/L ® Document ® Reset Cleared items. (Use T-code FBRA.) 

2. If you have cleared the open item through an automatic payment program, you 

need to execute T-code FCH8. 

81. Can you configure cash discount terms? 

Yes, this is configurable through payment terms. While configuring payment terms, 

you will define the cash discount if payment is made within the defined date. You 

can configure payment terms using T-code OBB8. 

82. What is a parked document and a held document? What are the 

differences between the two? 

Held document : When a user is posting a document and does not have the requisite 

data in his possession, he can hold the document until he gets all of the information. 

When a user holds the document, the system will ask to assign a number to it for 

easy identification. This number can be numeric or alphanumeric. 

Parked document : When the user does not have authorization for posting a 

document, he can prepare the document and park it for his superior to approve. 

When it is approved, the posting of the document will be completed. 

In the case of a holding document, the FI document may be incomplete in respect 

to debits = credits, while a parking document is a complete document by itself. 

In both cases, the G/L account balances will not be affected until the document 

is posted. 

83. What additional setup is required if more than one cash journal is maintained 

in a location? 

These are the additional steps required if an entity wants to have more than one 

cash journal:


■ 

■ 

Creation of a cash journal G/L account: An additional cash G/L account is 

required if you want to maintain more than one cash journal in the same 

currency. 

Cash journal setup: This is where you assign the document type of the G/L 

account to the cash journal. 

84. Explain the document currency and local currency fields when posting a 

document in SAP FI. 

Document currency is the currency in which transactions are carried out by the 

entity. It may or may not be the company code currency or local currency. Let us 

assume the company code currency is USD, and you are posting a transaction in 

INR (the currency code for Indian Rupees). If document currency is different from 

company code currency (local currency), the document currency will be translated 

into local currency. However, it is possible to overwrite the system proposed values 

manually. 

85. What configurations steps are required for a special-purpose ledger? 

These are the following steps for a special-purpose ledger: 

1. Define table group (T-code GCIN) IMG menu path—Financial Accounting ® 

Special Purpose Ledger ® Basic Settings ® Tables ® Definition ® Define Table 

Group 

2. Maintain fi eld movement (T-code GCF2) IMG menu path—Financial Accounting 

® Special Purpose Ledger ® Basic Settings ® Master Data ® Maintain 

Field Movements 

3. Maintain ledger for statutory ledger (T-code GCL2) IMG menu path—Financial 

Accounting ® Special Purpose Ledger ® Basic Settings ® Master Data ® 

Maintain Ledgers ® Copy Ledger 

4. Assign company code (T-code GCB3) IMG menu path—Financial Accounting 

® Special Purpose Ledger ® Basic Settings ® Master Data ® Maintain 

Company Codes ® Copy Company Code Assignments 

5. Assign activities (T-code GCV3) IMG menu path—Financial Accounting ® Special 

Purpose Ledger ® Basic Settings ® Master Data ® Maintain Activities ® Display 

Activity 

6. Define versions (T-code GCW1) IMG menu path—Financial Accounting ® Special 

Purpose Ledger ® Periodic Processing ® Currency Translation ® Define 

Versions


7. Set up exchange rate type (T-code OC47) IMG menu path—Financial Accounting ® 

Special Purpose Ledger ® Periodic Processing ® Currency Translation ® Set 

Up Exchange Rate Type 

8. Create number ranges (T-code GC04) IMG menu path—Financial Accounting ® 

Special Purpose Ledger ® Actual Posting ® Number Ranges ® Maintain Local 

Number Ranges 

9. Create currency translation document type (T-code GCBX) IMG menu path— 

Financial Accounting ® Special Purpose Ledger ® Actual Posting ® Maintain 

Valid Document Type 

10. Create posting period variant (T-code GCP1) IMG menu path—Financial Accounting 

® Special Purpose Ledger ® Actual Posting ® Posting Period ® Maintain 

Local Posting Period 

86. What is normal reversal and negative reversal? 

To correct an incorrect posting, mySAP ERP Financial provides two types of reversal: 

(1) normal reversal and (2) negative reversal. 

Normal Reversal 

GL No.XXXX 

Doc.no: .1033 $ 1000.00 

Original Posting 

Doc.no: .1034 $ 1000.00 

Reversal Posting 

$1000.00 

$1000.00 

Negative Reversal 

GL No.XXXX 

Doc.no: .1033 $ 1000.00 

Original Posting 

Doc.no: .1034 $ -1000.00 

Reversal Posting 

$0.00 

FIGURE 1.28 

Types of reversal


Normal reversal : In normal reversal, mySAP ERP Financial posts the reversal 

document on the opposite side of the original entry. In Figure 1.28, document 1033 

is the original posting, which is corrected by reversal through document 1034. This 

functionality does not suit the legal requirements of some countries. 

Negative reversal : In negative reversal, the accounting entry is posted on the 

same side as the original entry with the opposite sign. 

The net effect in both cases is the same. The account balance that is increased by 

the original posting will be reduced by the reversal posting, and vice versa. 

87. Explain the reversal process in SAP solutions. 

Various business situations may arise that compel a company to correct accounting 

documents. As you are aware, SAP R/3 and mySAP ERP Financial don’t allow the 

deletion of an accounting entry. The only way to correct accounting entries is to 

reverse the incorrect accounting documents. You can reverse FI accounting document 

only when: 

■ The document that is to be reversed originated in FI. 

■ All additional assignments are valid at the time of reversal, i.e., cost centers, 

business areas, etc. 

■ The document to be reversed has not yet cleared. 

■ The FI documents are not generated through IDOCs that came from external 

systems. 

■ The accounting documents are related to G/L, AP, and AR. 

During reversal, the SAP solution will create a reversal document according to 

the reversal document type set for the original document type. For audit tracking, 

you will find a reference to the reversal document number in the original document 

header; similarly, the reversal document header will include the original document 

number. 

88. What is a noted item in the SAP solution? 

A noted item is a special G/L transaction meant for informational purposes. 

A noted item reminds user groups of potential payment and creates a one-sided 

entry. Other advantages of noted items are access to these transactions from 

automatic payment programs and dunning programs.


FIGURE 1.29 

Noted item entry 

Noted items will not update the G/L account, will not have a zero balance 

check, and will have a single-item account assignment. Examples of noted items 

include bills of exchange requests and down payment requests. 

1.5 ACCOUNTS PAYABLE (FI-AP) 

89. How is the due date of a document calculated? 

The due date is determined through default payment terms entered in the business 

partner’s master data and setting a baseline date for payment terms. Payment terms 

can be configured through T-codes OBB8 and OBB9. 

FIGURE 1.30 

Due date calculation

1.5 ACCOUNTS PAYABLE (FI-AP) 45 

In Figure 1.30, your baseline date will be the document date. So the due date 

will be the baseline (i.e., document date) + number of days (i.e., 45). For example, 

while posting a transaction you enter your document date as 05/01/2009. Then 

your due date will be 05/01/2009 + 45 days, which is 06/15/2009. 

90. What is an automatic payment program? What are the steps to 

configure it? 

An automatic payment program is a program through which you are able to pay 

and generate checks for all vendors/customers you owe as per payment terms. This 

can be configured through T-code FBZP. 

Follow these configuration steps while you customize payment terms: 

1. All company codes you are defining parameters for 

a. Company code that processes payment 

b. Intercompany payment relationship 

c. Cash discount amount and percentage 

d. Tolerance days for payments 

e. Customer and vendor Special G/L transaction to be processed 

2. Paying company code 

a. Minimum amount for incoming and outgoing payment 

b. Specification for bills of exchange 

c. Forms for payment advice and electronic data interchange (EDI) format 

3. Payment method per country 

a. Types of payment method allowed at country level 

b. Master data lookup for payment processing 

c. Document type to be used for payment 

d. Currencies allowed for this payment method 

4. Payment method per company code 

a. Minimum and maximum payment amount at company code level for a 

payment method 

b. Whether or not foreign payment is allowed 

c. What foreign currencies are allowed for payment 

d. Bank and postal code optimization


5. Bank determination 

a. Ranking—The order in which payments will be processed 

b. Amount—Available amount for payment 

c. Account—G/L account to which posting will be made for payment 

d. Expenses and charges—Account to be posted to if any expenses are incurred 

while processing payment 

e. Value date—Relevant for cash management module 

91. What are the steps for configuration of withholding tax? 

You need to configure the following steps for extended withholding tax: 

■ 

■ 

■ 

■ 

■ 

■ 

■ 

■ 

Define withholding tax types—Invoice posting 

Define withholding tax types—Payments posting 

Define withholding tax codes for withholding tax types 

Define recipient types 

Assign withholding tax types to company 

Define accounts for withholding tax 

Activate the withholding tax code and type to the company code 

Assign the withholding tax type to the vendor 

92. What journal entries are passed in the system from the time of good 

receipt until payment is made to the vendor? 

In a simple business scenario, you will pass the following accounting entries from 

the time of goods receipt until payment to vendor. 

1. Transaction code MIGO 

Material Account debit 

GR/IR Account credit 

2. Transaction code MIRO 

GR/IR Account debit 

Vendor Account credit


3. Transaction code F-28 

Vendor Account 

Bank Account 

debit 

credit 

93. What is a GR/IR account? Why is it maintained? 

A GR/IR account represents goods receipts and invoice receipts. This is a clearing 

account that is maintained to nullify the time difference between goods receipts 

and invoice receipts from the business partner. The balance in the GR/IR account 

increases because of the following: 

■ If the quantity received is less than the quantity invoiced. The system then expects 

further goods receipts for this purchase order in order to clear this balance. 

■ If the quantity received is more than the quantity invoiced. The system then 

expects further invoices for this purchase order to clear this balance. 

94. What is the difference between withholding taxes and extended withholding 

taxes? 

The differences between the classic withholding tax and extended withholding tax 

are described in Table 1.2. 

Individual Function Classic Extended 

Withholding tax on outgoing payment Yes Yes 

TDS on incoming payment 

Yes 

TDS at the time of invoice Yes Yes 

TDS on partial payment 

Yes 

No. of withholding tax from each document Max 1 Several 

TDS basis—Net amount 

Gross amount 

Tax amount 

Yes 

Yes 

Yes 

TABLE 1.2 

Comparison of withholding taxes


95. What are segments in the vendor master? 

A vendor master contains three segments, which control different fields for a vendor. 

These are: 

■ General data segment: This segment holds a common set of data applicable 

for all company code. 

■ Company code segment: These are company code specific data that can’t be 

shared with other company code. 

■ Purchase organization segment: Like company code data, this segment contains 

specific purchase organization data. 

96. If a document type is configured for a vendor, can you use that document 

type in the line item posting key meant for a customer? 

With T-code OBA7 you are defining the document type. While configuring the document 

type, you are defining the type of account to which it will post. If the document type is 

defined only for vendors and you are using it for a customer, the system will not allow 

us to post to the customer. Hence, the document can’t be posted for a customer. 

97. What do you test in an automatic payment program? How is it done and 

what type of errors are you likely to get? 

Use T-code F110 to test the payment program. 

1. Enter data in the Parameters tab. 

2. Save. 

3. Edit the proposal and press Enter . The proposal will be completed. 

4. Display the proposal. 

5. Any errors will show under Exceptions. 

If there is an exception, check the logs that the system displays to see what you 

have not done. If everything is correct, the system will show an amount in place 

of Exceptions. 

Then you need to run the payment. 

Remember that you can edit or delete the proposal before the payment is run.


Any errors may be because you have not defined the payment method in the 

vendor master, the vendor may be blocked for posting, or the line item might have 

blocked the payment. 

98. What settings do you need to adjust before running the automatic 

payment program? 

There are five steps for running the automatic payment program: 

1. Status —In this tab page, the system will provide a message about the current 

status of the payment program. 

2. Parameters— This tab page holds important parameters for the automatic 

payment program. These are (1) Posting date, (2) Document entered up to, 

(3) Company code, (4) Payment method, (5) Next payment date, and (6) Vendor 

or Customer numbers. 

3. Free selection —In this tab page, you can enter additional parameters to search 

in the automatic payment program. 

4. Additional log —With the help of the additional log, you can define additional 

information for the automatic payment program. 

5. Print out data medium— In this tab page, you enter a variant name for the 

house bank. You also define the house bank, account ID, check lot, and print 

medium. 

99. What are sensitive fields with reference to customer and vendor masters? 

How do they work? 

Sensitive fields are a set of vendor or customer master data fields that you fill in 

but should not be altered frequently. In some businesses, any changes that affect 

these sensitive fields need to be verified by someone other than the person who 

makes the changes. 

If you define a field in the vendor master record as “sensitive,” the corresponding 

vendor account is blocked for payment if the entry is changed. The block is 

removed when a second person with authorization checks the change and confirms 

or rejects it. 

The block will occur at the time of automatic payment program (APP) only and 

not for manual payments through transaction code F-53.


100. You have four house banks. The end user has to use the third bank (rank 

order) only for check payments. Can you make payments through the 

third house bank? If so, how is it possible? 

Customize the priority as 1 for the third house bank. Otherwise, while posting 

the invoice, you can specify the house bank from which you intend to make the 

payment. 

101. What are the steps for linking customers and vendors? 

When the customer is also a vendor, or the vendor is also a customer, you need to 

follow these steps: 

1. Create the customer master and vendor master records. 

2. Assign a customer account number in the vendor master record and a vendor 

account number in the customer master record. 

3. In the customer master record in the company code data segment, select the 

Payment Transactions tab, and then select the check box labeled Clearing with 

Vendor. 

4. In the vendor master record in the company code data segment, select 

the Payment Transactions tab, and then select the check box labeled Clrg 

with Cust. 

5. Now when you try to clear using T-codes F-28 or F-53, it will show all of the 

transactions related to vendor and customer. You can just pay the balance 

amount after net off transaction between vendor and customer. 

102. How do you make an advance payment to a vendor through the APP? 

You need to use a down payment request to a vendor. This will create a noted item 

in the vendor, which you need to include with the APP. This will post the advance 

to the vendor as a special G/L transaction. 

There are two steps to make an advance payment to a vendor: 

1. Create a down payment request through T-code F-47. 

2. Post the down payment through T-code F110 (APP). The system will pay for 

all down payment requests by check or bank transfer.


103. How can you clear two general ledgers? 

You can clear two general ledgers through transaction code F-04 (posting with 

clearing), provided both general accounts are open item managed accounts. 

104. Is it possible to update the reference field in the header of a payment 

document when the check numbers are generated by the system? If so, 

what is the procedure to do it? 

Using T-code FCHU, fill out the company code, house bank, and account ID, and 

provide the check number and payment document number for which you want to 

update the check number. In the Target field selection for the check number section, 

select the field for which you want to update the check number and execute. 

105. What is an alternative payee? 

The payment program can make payment to a vendor other than the one to which 

the invoice was posted. The payment is made to an alternative payee, which must 

be specified in the master record. 

You can specify an alternative payee in the general data area or in the company 

code data area of a vendor master. The alternative payee specified in the general 

data area is used by every company code. If you specify an alternative payee in 

both areas, the specification in the company code area has priority. 

To always make vender payments to an alternative payee, proceed as 

follows: 

1. Create a vendor master record for the alternative payee. Block this account from 

posting. 

2. Specify the account number of the alternative payee in the Alternative payee 

field within the payment transactions section of the vendor master record. 

3. When making payments for this vendor, the payment program will always 

access the name and address of the alternative payee. 

In some instances, it may be better to specify a payee in the document. To do this, 

you have to activate this function by selecting the payee in the document indicator in 

the general data area of the Payment Transaction tab. When you enter documents for 

this account, the system displays a field in which you can enter an alternative payee.


The system always uses the payee that is most specific. This means that 

when you enter a payee in a document, it has priority over payees specified in the 

master record. 

106. How can you prevent a duplicate vendor master from being created? 

A check for duplicates can be configured to prevent the creation of more than one 

master record for the same vendor. This check is configured on address match code 

fields and occurs when creating new accounts or when changing the address on 

an existing account. 

107. Your client indicates they would like to allow for alphanumeric number 

ranges on vendor accounts. What type of number range would you 

recommend? Why? 

The only number range that can be alphanumeric is the external number range. An 

internal number range, on the other hand, can only be numeric and is automatically 

assigned by the system. 

1.6 ACCOUNTS RECEIVABLE (FI-AR) 

108. What is dunning? What is a dunning level? 

Dunning means notifying business partners of their overdue outstanding balance. 

A dunning level determines how often an account will be dunned. 

109. What factors differentiate one dunning level from another dunning level? 

The most important point that differentiates dunning levels is the dunning texts. 

The dunning text defines the urgency of the dunning notice. Other differentiating 

factors are dunning charges, minimum and maximum amounts, etc. 

110. What is the maximum number of dunning levels that can be created? 

There is a maximum of eight dunning levels for a business partner—excluding the 

legal dunning level.

1.6 ACCOUNTS RECEIVABLE (FI-AR) 53 

111. Explain the steps of dunning configuration. 

Use T-code FBMP to define the dunning configuration. In the dunning procedure, 

you are defining the following: 

■ Dunning parameters 

■ Dunning levels 

■ Charges 

■ Minimum amount 

■ Dunning texts 

■ SPL G/L indicators 

Besides the preceding settings, the following optional steps may need to be 

configured according to the requirements: 

■ Define dunning areas (T-code OB61) 

■ Define dunning keys (T-code OB17) 

■ Define dunning block reason (T-code OB18) 

■ Define dunning groupings (T-code OBAQ) 

■ Define interest rates 

FIGURE 1.31 

Dunning procedure


112. What is a sub ledger? How is it linked to the G/L? 

A sub ledger is a subsidiary ledger, which holds detailed transactions about the 

G/L. It is linked to G/L accounts through assignment of reconciliation accounts 

in the master. For example, Company X is dealing with 100 customers. The 

individual ledgers of these customers are called as sub ledgers. The reconciliation 

account attached to these 100 customers is the main ledger to these sub 

ledgers. 

113. Why do you use “bank type” in customer/vendor master records? 

The bank type is used to identify the bank through which the customer or vendor 

will carry out the transaction. This field is also important from the point of view 

of an automatic payment program. For example, Vendor X supplies materials and 

services. Vendor X also maintains two separate bank accounts, one for services 

and another one for materials. The vendor requests that payments for services be 

remitted to his bank account that is meant for services. In this circumstance, you 

may select the appropriate bank account when posting a transaction. 

1.7 FI-AA 

114. Suppose in 2005 I have depreciation key AB and in 2006 I have changed 

to depreciation key CD. In what ways would my balances be affected, 

e.g., accumulated depreciation, assets, etc.? 

Changes in depreciation are required under varied circumstances, such as changes 

in law, etc. A new depreciation key certainly has an effect on the depreciation rate, 

the accumulated depreciation account, and the depreciation expenses account. The 

difference in the depreciation that was already posted with the old depreciation 

key and what should be posted with the new depreciation key will be posted in 

the current accounting period. 

115. How do you calculate depreciation retroactively from its acquisition date 

after changing the depreciation key? 

After changing the depreciation key in the asset master depreciation area, you 

have to execute T-code AFAB (Depreciation Run) and select the Repeat Run radio

1.7 FI-AA 55 

button. In the repeat run, the system posts changes to depreciation, as compared 

to the depreciation amounts from the previous run. 

116. What is an asset class? 

An asset class is the main criterion for classifying fixed assets according to legal and 

management requirements. The asset class controls parameters and default values 

for asset masters. Each asset master record must be assigned to one asset class. 

117. How do you process fixed asset depreciation? 

Every asset transaction immediately causes a change to the forecast depreciation. General 

ledgers are updated only when you run depreciation through transaction code: 

AFAB. It is always advisable to run depreciation in test mode to know whether any 

errors exist or not. Once you are satisfied with the test result, you can run depreciation 

in update mode/production mode. During update mode, plan or forecast depreciation 

and post to the general ledger along with interest and revaluation, if any. 

When the system posts depreciation, it creates collective documents. It does 

not create separate documents for each asset. 

The depreciation posting run is done via transaction code AFAB. The depreciation 

program creates batch input sessions for posting depreciation and interest to 

the G/L accounts in financial accounting and/or to CO. 

118. What is an asset master? What does it control for sub asset masters? 

An asset master represents the master record and information about a particular 

asset. According to the screen layout of the asset master, it controls the following 

for sub assets: 

■ Sub assets master number assignment 

■ Assignment of the depreciation key 

■ Determination of life of assets 

■ Determination of assignment of group asset 

119. How many depreciation areas can be defined for a company code? 

Depreciation areas are not defined for company codes. Rather, depreciation areas 

are defined for a chart of depreciation (COD). While creating asset management 

company code, you are assigning a COD to company code. Once you assign a COD


to company code, all depreciation areas created in the COD will be available to the 

assigned company code. A maximum of 99 depreciation areas can be maintained 

for a COD. 

120. What are the types of depreciation methods? 

The following depreciation methods are used in AA: 

■ Base method . 

■ Decline value method . 

■ Maximum method—In this method, you define your maximum depreciation 

amount for a particular fiscal year. 

■ Multilevel method—This method helps to determine the validity of a particular 

depreciation rate. For example, an appropriate depreciation for assets is 5% 

for the first five years, and after that the depreciation rate will be 7.5% for the 

rest of the periods. 

■ Period control method—This determines the depreciation start date and end date 

of asset transactions. In this method, you determine the effective start date and 

end of depreciation calculation for (1) acquisition, (2) subsequent acquisitions/ 

postcapitalization, (3) intracompany transfers, and (4) retirements. 

121. How do you upload assets in SAP solutions without creating single assets 

through T-code AS01? 

These are possible ways of uploading the assets master: 

■ A legacy upload can happen through T-code AS100 (using XL), but here the 

group assets (used for tax purposes) future cannot be used . 

■ If group assets are required, using the BDC approach ensures that the legacy 

group assets are created prior to upload. 

■ For current year acquisition, use T-code ABZON. 

122. What is AA company code? 

Once you have assigned a COD to a company code, that company code is called 

AA company code.

1.7 FI-AA 57 

123. What are depreciation areas? 

Asset Class 

1000 

Milling Machines 

Chart of 

Depreciation 

1DE 

Germany 1AT Austria 

Areas Book Tax Group Book Group Investment 

Incentive 

Deprec. 

Key 

Useful 

Life 

Minimum 

Life 

Maximum 

Life 

DG30 

Decl.-bal. 

3 x 

SFG4 

Sponsored 

area 

LINR 

Str.-line 

DG20 

Decl.-bal. 

2 x 

LINR 

Str.-line 

IFB4 

Inv.subsidy 

write-off 

10/00 10/10 8/00 – 8/00 8/00 

– – – 8/00 – – 

– – – 12/00 – – 

FIGURE 1.32 

Depreciation areas 

Depreciation areas are used to calculate depreciation values of assets. 

Different kinds of depreciation areas are created to take care of different kinds 

of legal and management requirements. SAP software provides different 

depreciation areas according to country-specific COD. Figure 1.33 shows the 

U.S.A COD. 

FIGURE 1.33 

Depreciation areas


124. Is it possible to create an asset class automatically? 

Yes, you can generate asset classes automatically. There are two ways to do so: 

(1) create an asset class with reference to an existing asset class or (2) generate an 

asset class through the asset class transaction code ANKL. 

In the latter case, executing T-code ANKL gives you predefined steps to follow 

and the system will automatically generate an asset class for each G/L account. 

FIGURE 1.34 

Automatic creation of asset classes 

125. How can you create multiple assets? 

There are various ways to create multiple assets for the same assets class: 

■ 

■ 

■ 

Create assets one by one with transaction code AS01. 

If the attributes of the assets are the same, you can create similar assets by entering 

the appropriate values in the Number of similar assets fields. 

You can create a BDC session.

1.7 FI-AA 59 

Of the preceding methods, if you want to create more than one asset of 

a similar kind, the second option is the best one. For example, say you have 

purchased three laptops and you want to create three assets (all of which are 

laptops). 

FIGURE 1.35 

Asset master creation 

126. Explain various ways to acquire assets and the corresponding accounting 

entries. 

Assets can be acquired in the following ways: 

1. Outright Purchase: This is the common way for purchase of an asset. In case 

of outright purchase, you can acquire an asset from your supplier. 

2. Assets Under Construction: These are assets that clients generate or build within 

their environment, i.e., construction of building, plant, and machinery. 

3. Intercompany Transfer: Someone’s company code transfers certain assets to 

another company code within a corporate group.


In all these cases accounting entries differ from others. 

1. Outright Purchase: 

Debit Assets $ 

Credit Vendor $ 

2. Assets Under Construction (AUC): 

Debit AUC $ 

Credit Vendor $ 

3. Intercompany Transfer: 

Debit Assets $ 

Credit Company $ 

127. Explain various ways assets may be retired and the related accounting 

entries. 

The following chart provides various ways that assets are retired. To retire an asset, 

one of the following options may be considered. 

Assets 

Retirement 

Sale of 

Assets 

Scrap of 

Assets 

With 

revenue 

With 

customer 

Without 

customer 

FIGURE 1.36 

Without 

revenue 

With 

customer 

Without 

customer 

Asset retirement 

128. What is acquisition and production cost (APC)? 

Acquisition means any asset that you can acquire or purchase externally. It 

includes invoice price and other related expenses associated with it, like customs

1.7 FI-AA 61 

or freight, which you add to arrive at a total cost of acquisition for capitalization 

of the asset. 

Production cost means any asset that is created internally within the organization. 

This is normally created by means of Assets Under Construction (AUC), and 

you go on adding cost to the AUC as you incur expenses for the same, such as an 

addition to the office building. Therefore, APC includes any external acquisition 

or internal construction expenses that need to be capitalized. 

129. Explain the assets organization structure from company code to subassets. 

The assets organization structure consists of the FI organization structure plus asset 

management configuration steps. Assigning a COA to company code is the first step 

toward creating an assets organization structure. 

In asset management, you define account determination, which in turn is 

assigned to the G/L account. Sub-assets are created under assets, which in turn are 

sub-units of the asset class. The asset class is assigned to the account determination. 

Figure 1.37 depicts the assets organization structure. 

Company 

Code 

Account 

determination 

Account 

determination 

Account 

determination 

Assets Class 

Assets Class 

Assets 

Assets 

Sub Assets 

FIGURE 1.37 

Assets organization structure


130. How do you reverse depreciation posting? 

You can’t reverse a depreciation posting run. Reversing posted depreciation occurs 

when there is a change in the depreciation parameters. 

SAP solutions provide the functionality to take care of this situation. 

For instance, after depreciation posting you will know that there is change in 

the useful lives of your assets or change in the depreciation keys assigned to your 

assets. Asset transactions such as retirements and transfers also affect the plan. 

After necessary changes in configuration, you need to perform the recalculation 

procedure. Once you perform the recalculation procedure, the SAP solution will 

take care of changed parameters and recalculate depreciation from the start of 

the asset’s life. 

The difference will be posted, thereby bringing the assets in line with the 

plan. The only exception to this is if you change the cost center assigned to 

an asset. The depreciation expense is never reposted, so if you need to correct 

that, you have to do it with a manual adjustment in the depreciation expense 

accounts. 

131. Which activities should be done before the production startup? Give a 

brief description of each of them. 

1. Check consistency—Major components configured, e.g., COD, company codes, 

depreciation areas, asset classes, asset G/L accounts, and AA customizing. 

2. Reset company code—Test application data can be deleted (asset master records 

and transactions of AA) but only if the company code has a test status. Customized 

settings are not deleted. 

3. Reset posted depreciation—This function is performed when errors occurred while 

testing the depreciation posting run and it is necessary to return to the original 

status (includes depreciation data of an old assets data transfer). Manual 

adjustments in the relevant G/L expense and depreciation accounts need to be 

performed. The reset is possible only for a company code in a test status. 

4. Set/reset reconciliation accounts—The G/L accounts relevant for AA are defined 

as reconciliation accounts by a report changing their master records. After the 

data transfer, these accounts can no longer be directly posted to. 

5. Transfer balances—Balances to the G/L accounts, which have been defined as 

reconciliation accounts, are transferred (old data at fiscal year end). 

6. Activate company code—This function terminates the production startup.

1.7 FI-AA 63 

132. Describe the asset history sheet. 

The asset history sheet is the most important and most comprehensive year-end 

report or intermediate report. It displays the various stages of a fixed asset’s 

history—from the opening balance through the closing balance—including any 

acquisitions, retirements, or accumulated depreciation. SAP solutions supply 

country-specific versions of the sheet. It is often a required appendix to the balance 

sheet. 

133. What is periodic processing, and what is it used for in AA? 

Periodic processing comprises the tasks that must be performed at periodic 

intervals. Since only the values from one depreciation area can be automatically 

posted online in FI, the changes to asset values (transactions) from other areas with 

automatic postings have to be posted periodically to the appropriate reconciliation 

accounts. Period processing includes posting acquisition production cost (APC) to 

depreciation areas other than book depreciation areas and depreciation posting/ 

interest posting for all other depreciation areas. 

134. What are the three direct types of depreciation that are supported by 

the system? 

Ordinary depreciation is the planned reduction in asset value due to normal wear 

and tear. Therefore, the calculation of depreciation should be based on the normal 

expected useful life. 

Special depreciation represents depreciation that is solely based on tax regulations. 

In general, this form of depreciation allows depreciation by percentage 

within a tax concession period without taking into account the actual wear and 

tear of the asset. 

Unplanned depreciation is concerned with unusual circumstances, such as 

damage to the asset that leads to a permanent reduction in its value. 

135. Define derived depreciation area. 

A derived depreciation area is a calculated depreciation from two or more real areas 

using a calculation formula. You can use derived depreciation areas, for example,


to calculate special reserves as the difference between tax and book depreciation. 

The book value rule in a derived depreciation area is checked each time a posting 

is made or depreciation is changed in the corresponding real area. 

136. Explain the difference between the methods for distributing forecast 

depreciation to the posting periods. 

The smoothing method distributes depreciation evenly to the periods from the 

current depreciation period to the end of the fiscal year (regardless of the value 

date of the transaction). 

With the catch-up method , the depreciation on the transaction (from the start 

of capitalization up to the current period) is posted as a lump sum. The depreciation 

posting program posts this amount in the posting period in which the value 

date of the transaction lies. 

137. How many ways can you create the asset master record? 

There are three ways to create your asset master record: (1) through an asset class, (2) 

with reference to an asset, and (3) using the number functionality for similar assets. 

1. Through transaction code AS01, you can create a new asset master by using 

an asset class. In this case, you will provide all information with respect to the 

asset master. 

2. Use an existing asset as a reference for creating the new asset master record. 

3. You can use number functionality to create more than one similar master. For 

example, if you purchased 100 laptops, you can create 100 asset masters at a 

time instead of creating asset masters one by one using this functionality. 

138. Is it possible for an asset acquisition to be posted in two steps? How do 

the two entries clear? 

When the asset acquisition is posted in two steps or two different departments, you 

normally post to a clearing account. This case arises when supplier is not known 

while capitalizing assets. In the first step, assets value credited to an open item 

managed account. In the second step, you are giving credit to vendor by debiting

1.8 GENERAL CO 65 

a clearing account. Either the FI department includes this clearing account in their 

periodic run of SAPF123 (automatic clearing program) or the clearing account has 

to be cleared in an additional step (menu path: Posting → Acquisition → External 

acquisition → Clearing offsetting entry). 

139. What is the difference between the COA and the COD? 

The COA is the index of G/L accounts. The COA can be global, country specific, 

or industry specific, based on the needs of the business. The COD is the index of 

depreciation areas. The COD is only country specific. The charts are independent 

of each other. 

140. Describe the function of depreciation areas. 

The COD is the index of depreciation areas. You are maintaining different 

depreciation areas to fulfill different accounting needs, e.g., for IAS requirement, IFS 

requirements, or tax requirements. In a COD, you should have at least one depreciation 

area, e.g., book depreciation areas. A depreciation area contains depreciation 

keys, which control how assets will be depreciated. 

141. What significance does depreciation key 0000 have? 

Depreciation key 0000 is an SAP-delivered key that ensures depreciation and interest 

are not calculated and posted. This key can be used for the assets under construction, 

such as land. 

1.8 GENERAL CO 

142. What is a controlling area? 

The controlling area is the central organizational unit within the CO module. It 

is representative of a contained cost accounting environment where costs and 

revenues can be managed.


143. Define the relationship between a controlling area and a company 

code. 

A controlling area may include one or more company codes, which must use the 

same operative COA as the controlling area. A controlling area can contain multiple 

company code assignments, but a single company code can be assigned to only one 

controlling area. 

144. What is an operating concern? 

An operating concern is an organizational unit. An operating concern can be 

assigned to one or more controlling areas; whereas a controlling area will have 

only one operating concern. 

145. How many statistical objects can be selected when you post an FI 

document where cost center accounting (CCA), PCA, and internal order 

(IO) are active? 

When posting an FI transaction, you can choose a maximum of two statistical 

objects, whereas real posting can be made to one cost object. Posting to a profit 

center is always statistical, depending on internal order, and the cost center may 

have real or statistical posting. 

146. What is accrual? 

Accrual is a process whereby you are accumulating expenses in CO on a predefined 

constant rate throughout the financial year. These expenses arise and are 

posted in FI in a random fashion. It is used for revenues or expenses that have 

already been posted in FI and revenues or expenses that are to be posted. 

For example, bonuses arise at the end of the year and are posted in FI at the end 

of the year, but through the process of accrual, the bonus is collected in CO on 

a periodic basis. 

147. Describe the major differences between managerial accounting and FI. 

Table 1.3 describes some differences between managerial accounting and FI.


Managerial Accounting 

Generally no constraints 

Future orientation 

Data is used by managers at various 

levels within the company 

Meant for internal reporting 

FI 

Constrained be GAAP and/or IAS 

Past orientation 

Data is used by outside parties such as 

banks, investors, and other 

stockholders 

Meant for external reporting 

TABLE 1.3 Management accounting versus FI 

148. Define the term cost object. 

A cost object is a responsibility center, project, product, or other item for which a 

separate measurement of cost is desired. Cost objects are defined by management 

and can include cost centers, projects, and activities. 

149. Describe overhead costs and provide an example. 

Overhead costs are indirect costs that cannot be directly assigned to a manufacturing 

process. Utilities, rent, and telephone expenses are examples of overhead costs. 

150. What are the two major components of CO? 

Configuration and application. The purpose of configuration is to customize CO to 

meet the specific needs of the client. The application component supplies the tools 

necessary for internal reporting and analysis. 

151. List the five CO submodules. 

These are the five submodules of CO: 

■ CO-CCA—The management of a company frequently looks for ways to reduce 

overhead costs. CCA, along with IO, provides a solution to this issue. CCA 

tracks costs in an organization where these costs are incurred.


■ 

■ 

■ 

■ 

Cost Element Accounting (CO-CEL)—CEL describes the costs that occur within 

an organization. It classifies them on the point of occurrence: (1) primary cost 

element, (2) revenue cost element, and (3) secondary cost element. 

Product Cost Accounting (CO-PC)—This is used to estimate what it will cost to 

produce a product (or a service). It also has capabilities to track the actual costs 

of production, and provides extensive tools for cost analysis. 

Profitability Analysis (CO-PA)—Very often, management is interested in knowing 

which products and which geographical areas are performing well. This module 

provides this information to management. 

CO-PCA—This module tracks cost and revenue from the point of responsibility 

accounting. 

152. True or False? Activity-based costing (ABC) is primarily used to capture 

the costs of internal events, such as travel costs and trade fairs. 

False. ABC is a sub-module of controlling, which captures cost and usage of 

resources at each and every activity for further analysis. Whereas an IO is used to 

capture cost, related to a particular event or product. 

153. True or False? PCA is generally used for margin reporting and cost of 

sales accounting. 

False. PA is used for margin reporting and cost of sales accounting. PCA is used for 

period-based accounting and complete financial statements. 

154. What is the primary integration point between the CO and FI 

modules? 

G/L expense accounts are the primary cost elements in CO. Primary cost element is 

the carrier of cost within CO. Every primary cost will have a G/L account, therefore 

the relationship between primary cost element and G/L account is 1:1. 

155. What are the differences between business areas and profit centers? 

Business areas and profit centers are both used for management reporting, i.e., 

internal purposes only. The main differences are: 

■ 

A profit center is a master data, whereas a business area is not.


■ 

■ 

■ 

A profit center is assigned to a controlling area and internally to a company 

code. A business area is not assigned to either of these. 

Reposting is possible from one profit center to another, whereas reposting is 

not possible from one business area to another until or unless you pass an 

entry in FI. 

In ECC 5.0 onward, online splitting is possible. That is, online derivation of a 

profit center is possible, but not for a business area. 

156. What is the work breakdown structure (WBS)? 

WBS is used in the Project Systems module. It is a node of a project. There is a hierarchical 

structure under the project, similar to tasks/subtasks on the project plan. 

WBS is used to collect costs from various resources such as POs, direct allocation 

to project, etc. At the end of the month when the project settlement runs, the cost 

collected at WBSs is transferred to other cost objects such as cost centers, assets, 

etc. Revenues can also be assigned to WBS elements by linking it with sales orders 

in SD. And since it is linked to the project in the project system, profitability of the 

project can be derived. 

157. How can you tell an FI document from a CO document? 

There are two ways to tell FI documents from CO documents: 

1. Execute transaction code KSB5. Select the CO document for which you want to 

see the FI document, then go to Environment → accounting document. 

2. If you want to find FI documents for a number of CO documents, then 

browse the COBK table using transaction code SE16 and look for the field 

COBK-REFBN. 

158. How many documents are created when primary costs are posted to CO 

from another module? 

Two documents are created when primary costs are posted to CO from another 

module: 

■ The original document in FI, AM, or MM . 

■ A parallel document in CO that displays the data from a cost accounting viewpoint. 

The CO document is summarized according to cost element and cost 

object.


1.9 CO-CEL 

159. What are the different types of cost elements? What is the difference 

between primary and secondary cost elements? 

There are two types of cost elements: (1) primary cost elements and (2) secondary 

cost elements. 

Primary cost elements are cost elements whose costs originate outside of CO. 

These elements correspond to a G/L account in FI. 

Based on usage, primary cost elements can be further divided into the categories 

shown in Figure 1.38. 

FIGURE 1.38 

Primary cost element categories 

Secondary cost elements are cost elements used to allocate costs for internal 

activities. Secondary cost elements do not correspond to any G/L account in FI. They 

are only used in CO and therefore cannot be defined in FI as a G/L account. 

Secondary cost elements are divided into the categories shown in Figure 1.39. 

FIGURE 1.39 

Secondary cost element categories

1.10 FI-CCA 71 

When you are creating a cost element master, you always select and create your 

cost element under one of the categories shown in Figures 1.38 and 1.39. 

1.10 FI-CCA 

160. Where do you assign the activity type in cost centers? 

There is no direct assignment. You plan the output for a cost center in terms of 

activity using transaction code KP26. Then you have to plan the value of that 

cost center for which you have planned activity for a period using transaction 

code KP06. A planned activity expenditure or planned activity quantity will 

give you the planned activity rate, which you can use to valuate the activity 

confirmations in manufacturing orders. You can also define your own prices, 

but you have to run the price revaluation if you want to revaluate the actual 

activity prices. 

161. For statistical key figures, what is the significance of sender and receiver 

cost elements and cost centers? 

Statistical key figures are not real account assignments. In simple terms, they are 

used to allocate or define proportions with which the cost is allocated to various 

cost objects. Statistical key figures are used to calculate the debit on a receiver object. 

These values can be used for assessing common costs, which are used by all the 

other cost centers. 

162. What is periodic reposting? 

Periodic reposting is the function that lets us correct postings to cost centers. Periodic 

reposting is an allocation method that uses rules defined in the form of cycles 

to credit allocation cost centers. These allocation cost centers are used to collect the 

postings relevant to cost accounting. 

Periodic reposting enables you to adjust postings made to your cost centers, 

business processes, IOs, or WBS elements. They lead to the same result as 

transaction-based reposting. The results of transaction-based reposting have a 

direct effect on the actual costs of the sender and the receiver, whereas periodic 

reposting has a one-time effect on actual costs at period-end closing.


163. What is the difference between periodic reposting, distribution, and 

assessment? And which would you use under what situations? 

You use periodic reposting for primary cost allocation. In case of periodic reposting, 

you can’t see the actual transfer between cost object. It just reclassifies cost between 

cost objects. It is used to rectify incorrect posting. 

You use distribution for primary cost allocation. The amount appeared at credit 

side in sender cost center and amount appeared at debit side in receiver cost center. 

This is used to distribute cost to different cost objects, which earlier were collected 

in the distribution cost center. 

You use assessment for primary cost allocation through a secondary cost element. 

Amount appeared at credit side in sender cost center and amount appeared 

at debit side in receiver cost center. This is used to share costs between various cost 

objects based on service received. You use assessment for both primary and secondary 

code. During assessment process, the system groups together primary cost and 

secondary cost allocations through the assessment cost element. 

164. What is allocation structure? 

It is a template that contains one or more segments called assignments to allocate 

the costs incurred on a sender by cost element or cost element group. The allocation 

structure is used for settlement as well as for assessment. In the allocation structure 

you set the relation between sender and receiver cost objects. 

165. What is the difference between reposting and allocation? 

In reposting, the debit side of the sender is reduced and a new line is created on 

the debit side of the receiver. In allocation, the debit side remains unchanged, but 

a separate credit entry is made on the sender A/C. 

166. What is the standard hierarchy? 

Standard hierarchy represents the structural arrangement of cost centers and cost 

center groups. It is a tree structure containing all of the cost centers in a controlling 

area from the CO standpoint. You assign a cost center to an end node of the standard

1.10 FI-CCA 73 

hierarchy in the master data maintenance of the cost center or in the enterprise 

organization. This ensures that the standard hierarchy contains all of the cost centers 

in that controlling area. When you define the controlling area, you specify the name 

of the top node of the standard hierarchy in that controlling area. Use transaction 

code OKEON to build your cost center hierarchy. 

167. What is the basic difference between cost centers and IOs? 

A cost center is an organizational element that is responsible for its expenses. It is 

used for internal reporting for a long time span as part of the company structure. 

A cost center generally represents a department or work center. 

An IO is used to accumulate cost for a specific project or task for a specific time 

period. An IO is therefore used for a short period with a specific deadline. 

IOs usually settle to cost centers (and not vice versa) according to the settlement 

rule in the order setup. 

An IO can therefore be used to group all of the expenses incurred in relation 

to a specific business activity. The order can be settled on a monthly basis to cost 

centers. 

When the business object is finished, the order can finally be settled to cost 

centers. 

168. What is a statistical key figure? 

An SKF is a unit of measurement used for internal allocation of cost between various 

cost centers that utilizes services of other cost centers. For example, an SKF may be 

a machine hour, the head count of a cost center, etc. 

169. What is reposting? 

Reposting is a posting aid in which primary costs are posted to a receiver object 

under the original cost element (the cost element of the sender object). Reposting is 

used to rectify incorrect postings. The following methods are available: 

■ Transaction-related reposting: Each posting is made in real time during the 

current period. 

■ Periodic reposting: The costs being transferred are collected on a clearing 

cost center and then transferred at the end of the period according to


allocation bases defined by the user. This method produces the same results as 

transaction-related reposting. 

170. What is the difference between assessment and reposting? 

Assessment is a method of internal cost allocation by which you allocate (transfer) 

the costs of a sender cost center to receiver CO objects (orders, other cost centers, 

and so on) under an assessment cost element. 

Reposting is a posting aid with which primary costs are posted to a receiver 

object through original cost element (the cost element of the sender object). 

Under assessment, costs are allocated to the sender cost center under the assessment 

cost element. The sender cost center receives costs under the assessment cost 

element, which does not reveal the actual cost elements. In reposting, however, 

costs are transferred under the original cost elements. 

171. It is said that both activity type and SKF act as a tracing factor for cost 

allocations. Explain what the difference is between these two and when 

each is used. 

An SKF is set up within the cost centers and values are assigned to them as part 

of the allocation process. Activity types have absorption rates linked to them and 

dollars are consumed out of a cost center based on a specific amount of activity that 

has been consumed. 

For example, you can have activity types for people hours and machine hours 

being consumed out of a manufacturing cost center. You calculate a rate in the planning 

processes that is loaded at the beginning of the year. Then for every hour used to 

produce a product, you will consume dollars from the cost center into the production 

order or cost object based on the hourly rate you set at the beginning of the year. 

Activity type is used where the sender cost center produces certain output, 

such as machine hours, that is utilized by other cost objects, while SKF is used to 

distribute cost among various cost objects. 

172. How are cost centers populated with financial data? 

Cost centers get financial data in the following ways: 

■ 

While posting a transaction you are entering the cost object at the line item level.

1.10 FI-CCA 75 

■ 

■ 

Instead of entering a cost object, you assign a default cost center to G/L accounts 

by assigning a cost center to a cost element. 

Cost centers also get financial data through settlement of IOs, assessment, and 

distribution of cost center. 

173. How can you allocate depreciation expenses to multiple cost centers? 

There are two ways to transfer depreciation cost to cost centers: (1) through default 

cost center assignment to the asset master and (2) through default cost center 

assignment to the primary depreciation cost element. 

When an organization uses its assets for various cost centers, it is better to use 

the second option. In the second option, you can assign a distribution cost center 

as the default to the primary depreciation cost element. As a period-end process, 

you can distribute depreciation expenses to various cost centers through cost center 

distribution. 

174. What are segments and cycles? 

Cycles and segments are utilized by the SAP system to perform automated allocations, 

such as distributions, assessments, and reposting (covered in Chapter 5) of 

both planned and actual costs. 

A cycle may be defined as a holding place for the various rules that 

will define an automated allocation. Cycles are comprised of segments, and 

each segment represents one set of data needed to complete the automated 

allocation. 

A segment consists of the following: 

■ Allocation Characteristics—Identification of sending and receiving cost 

centers. 

■ Sender Values—The types of costs that will be allocated, whether they are 

planned or actual amounts, and what percentage of total sender costs will be 

allocated. 

■ Receiver Values (Tracing Factors)—The basis for allocation, which can be 

percentage, fixed amount, or SKF.


FIGURE 1.40 

Cycle 

Figure 1.40 shows a cycle. Cycles are controlling areas dependent and valid 

for a period of time. All postings occurring in the cycle periods will be processed 

through one or more segments . 

FIGURE 1.41 

Segments 

You create segments within a cycle. Segments determine the sender and receiver 

relation and distribution methods.

1.10 FI-CCA 77 

175. What is the purpose of variance analysis? 

Variance analysis is used to calculate and interpret differences between planned 

costs and actual costs within a cost center or cost center group. It also provides 

vital information that can be used to modify and improve planning in subsequent 

periods. 

176. List the two main types of actual postings to CO. 

There are two types of actual postings to CO: (1) transaction-based postings and 

(2) periodic allocations. 

Transaction-based postings (also known as transaction-based allocations) are 

posted on a real-time basis from other modules or within CO. This enables up-tothe-minute 

reporting of costs incurred on the cost centers at any time during the 

period. There are four transaction-based postings to CO: 

■ From other modules: 

■ Direct postings to cost centers from other modules, such as FI, AM, 

and MM 

■ Within CO: 

■ Reposting 

■ Activity allocation 

■ Posting of SKFs 

Periodic allocations exist entirely within CO. They occur at the end of the period 

after all primary postings have been completed. Periodic allocations require cycles 

and segments to be executed. There are five main types of periodic allocations: 

■ Periodic reposting (periodic transfers) 

■ Distribution 

■ Assessment 

■ Imputed cost calculation 

■ Indirect activity allocation 

177. Define direct internal activity allocation. 

Direct internal activity allocation is the process of recording activities performed by 

a cost center and simultaneously allocating those activities to receiving cost centers


based on consumption. In the case of direct activity allocation, the sender (output) 

and the receiver (consumption) activity volumes are known. 

178. Explain both the iterative and cumulative form of cycle processing. 

In iterative processing, the iterative sender/receiver relationships (sender is also 

among the receivers) are considered when this cycle is processed. The iteration is 

repeated until each sender is fully relieved of costs provided. Cycles may be set to 

iterative processing for both plan and actual data. 

In cumulative processing, all posted sender amounts since the first period are 

accumulated and allocated based on the tracing factors accumulated since this 

period. The difference between the accumulated amount and the posted amounts 

in previous periods is posted in the current period. The postings in previous 

periods remain unchanged. Cycles may be set to cumulative processing for actual 

data only. 

179. Describe the use of the reconciliation ledger. 

The reconciliation ledger keeps track of transactions between company codes within 

one controlling area, since such cross-company allocations result in an imbalance 

between CO totals and FI totals. Because legal reporting is based in FI, all transactions 

that cross company codes in CO must be reflected in FI. 

180. Describe imputed cost calculation in CO. 

Imputed cost calculations are used to smooth the effect on cost centers for large, 

one-time charges, such as insurance premiums or employee bonuses. By smoothing 

one-time expenses in CO, price fluctuations from period to period can be avoided. 

There are two methods for calculating imputed costs in the R/3 system: (1) cost 

element percent method and (2) target = actual method. 

181. Define activity dependent cost, activity independent cost, and 

mixed cost. 

Activity dependent costs are variable costs that fluctuate based on activity. The 

greater the activity, the greater the cost. For example, direct labor costs increase as 

production increases.

1.11 CO-PCA 79 

Activity independent costs are fixed costs. Activity independent costs do not 

fluctuate based on activity. For example, regardless of output, insurance premiums 

will not change. 

Mixed costs are a combination of both fixed and variable costs, and display 

the characteristics of both. For example, the basic cost of heating a building (fixed 

portion) would increase as production increases (variable portion). 

1.11 CO-PCA 

182. What is a dummy profit center? 

A dummy profit center is created to take care of any missing configuration or 

assignments in CO area. For example, if you do not assign some of the cost centers 

to a profit center, they will be assigned to the dummy profit center so that 

the configuration is automatically completed while making consolidations for 

reporting/decisional purposes. Every item that goes to the dummy profit center 

will be adjusted at month end to their actual profit centers as well. Because the 

dummy profit center absorbs all types of costs, it has to be adjusted to its actual 

profit center at month end. Use transaction code KE59 to create a dummy profit 

center. 

183. What is a cost center and a profit center? 

A cost center is an organizational unit within a controlling area that represents a 

defined location of cost incurrence. The definition can be based on: 

■ Functional requirements 

■ Allocation criteria 

■ Physical location 

■ Responsibility for costs 

A profit center is an organizational unit within a controlling area that represents 

a defined location for revenue recognition. The definition can be based on: 

■ Functional requirements 

■ Allocation criteria 

■ Physical location 

■ Responsibility for costs


184. Describe how cost and revenue flow to PCA. 

Depending upon business requirements, profit centers are mapped to various 

business objects in the following ways: 

■ Through material master—In this case, any transaction affecting material will 

update the profit center. 

■ Through cost center—Assignment of profit center to cost center master. 

■ Through IOs—Like Cost center, you can assign profit center to internal order 

master. 

■ Through transaction code OKB9—In this case, you are mapping the profit center 

with a combination of company code, cost element, and profit center. 

1.12 CO-IO 

185. What is IO? 

IO is a cost object that collects costs for the management information system and, 

in some instances, revenues for an organization. IOs can be used to: 

■ Monitor the costs of short-term measures 

■ Monitor the costs and revenues related to a specific service 

■ Monitor ongoing costs 

IOs are divided according to function into the following categories: 

■ Overhead Orders— Overhead orders monitor subareas of indirect costs arising 

from short-term measures. They can also be used for detailed monitoring of 

ongoing plans and actual costs independent of organizational cost center structures 

and business processes. 

■ Capital Investment Orders— Capital investment orders monitor investment costs, 

which can be capitalized and settled to fixed assets. 

■ Accrual Orders— Accrual orders monitor period-based accrual between expenses 

posted in FI and accrual costs in CO. 

■ Orders with Revenues —Orders with revenues monitor the costs and revenues 

arising from activities for partners outside the organizational boundaries, or 

from activities not belonging to the core business of the organization.

1.12 CO-IO 81 

186. What is order type? What are the parameters it controls for IO? 

An order type contains many kinds of control information important for managing 

orders. This includes many default values that can be called upon when you create 

a new order with this order type. You must assign each order to an order type that 

transfers specified parameters to the order. 

The order type is client specific, which means that an order type can be used 

in all controlling areas. 

The order type controls/determines the following fields for an order: 

■ Order Category 

■ Number Assignment 

■ Control Indicator 

■ CO Partner Updating 

■ Order Classification 

■ Commitment Management 

■ Revenue Posting 

■ Integrated Planning 

■ Settlement Profile 

■ Planning Profile 

■ Budget Profile 

■ Status Management 

187. What is an order category? 

An order category is a technical classification criterion for IOs. The order category 

determines the SAP application to which an order belongs, and controls the functions 

with which an order can be processed. The standard order categories are: 

■ 01—IO (CO) 

■ 02—Accrual Calculation Order (CO) 

■ 03—Model Order (CO) 

■ 04—CO Production Orders 

■ 05—Product Cost Collector


188. What is a settlement profile? 

In a settlement profile you will specify a range of control parameters that define 

how the order will be settling to other cost objects. You must define the settlement 

profile before you can enter a settlement rule for a sender. 

In a settlement profile, you define the following parameters: 

■ Permitted settlement receivers (such as cost center or asset) 

■ Default values for the settlement structure and the PA transfer structure 

■ Allocation bases for defining the settlement shares (using percentages and/or 

equivalence numbers) 

■ Maximum number of distribution rules 

■ Retention period of the settlement documents 

■ Document type for settlements relevant to accounting, or, more specifically, to 

the balance sheet 

■ Definitions for the settlement of actual costs or the cost of sales 

189. What is a planning profile? 

A planning profile contains parameters and default values for overall planning. 

You can also assign an order type to the planning profile at a later date. You need 

planning profiles for the following planning methods: 

■ Overall planning for IOs 

■ Hierarchy cost planning for projects 

■ Preliminary costing for production orders that do not have a quantity structure 

(CO production orders) 

■ Cost planning for investment programs or investment measures, and for appropriation 

requests 

■ Financial budgeting 

190 What is a budget profile? 

Budgeting within SAP solutions provides the user with enhanced project 

management capabilities not provided by IO planning. Where an IO planning 

is an estimate of expenditures made at the beginning of the fiscal year,

1.12 CO-IO 83 

a budget represents the actual approved amount of funding for a given order. Because 

the budgeted amount is maintained separately you have an opportunity to do plan 

versus budget comparisons. This profile contains parameters and default values for 

budgeting. You can also assign an order type to a budgeting profile at a later date. 

191. What are reference orders and model orders? 

A model order is not a real order in the commercial sense. It is customized with 

certain default values to reduce time and effort while creating real IOs. Model orders 

contain default values for the orders in an order type. You need to enter the model 

order as the reference order in the order type. When you create a new order, all of 

the active fields in the relevant order type are copied from the model order to the 

new order. Model orders make the work of entering new orders considerably easier. 

The data that recurs in orders from a particular order type is already defined. This 

reduces the likelihood of errors. 

192. What is a settlement rule? 

The settlement rule determines what portions of a sender’s costs are to be settled 

to which receiver(s). You specify this by assigning one or more distribution rules to 

each sender. Typically there is one distribution rule for each receiver. This is carried 

out at order level. 

193. What is availability control in IO? 

Availability control is a process where users of IOs will issue a warning when the 

order cost reaches a particular stage. The idea behind availability control is that 

the SAP solution should alert you when you are about to exceed some predefined 

percentage of the budgeted amount. This activity is carried out through the establishment 

of spending tolerance levels associated with each budget profile/controlling 

area relationship. 

194. What is a budget manager? 

A budget manager is a person who will be informed when an IO reaches a 

particular spending level. When you are maintaining the action setting for


availability control, you are given a choice of whether to return a warning with 

or without an email message. If you have chosen a warning with an email, 

you must have established the proper budget manager setting before the email 

process will work. 

195. What is IO status management? 

Status management is an act of determining and managing which transactions are 

valid for an order at any given time within its life cycle. In SAP solutions, the term 

life cycle refers to an order’s fluid existence, moving from one phase to another 

until it is closed. There are two types of status management available: (1) general 

status management and (2) order status management. 

196. What settlement types are available for IO? 

IO may be settled to other CO objects and/or to G/L in the following ways: 

■ 

■ 

■ 

■ 

100% validation 

% settlement 

Equivalence number 

Amount settlement 

197. Define statistical IOs. 

A statistical IO can be defined to collect costs for informational purposes only and 

therefore needs a real cost assignment (e.g., to a cost center) at the same time. The 

costs posted to a statistical IO are not settled. 

1.13 CO-PA 

198. What are the characteristics of PA? 

The characteristics of an operating concern represent objects or market segments 

that can be used as a basis for performing evaluations. The characteristics also

1.13 CO-PA 85 

represent reference objects for allocating costs in PA. This enables source-related 

cost allocation at the level responsible, according to direct costs and contribution 

margin accounting. Some of the SAP-delivered characteristics are: Country, Material 

group, State, and Customer group. 

199. What are value fields? 

Value fields are key figures that represent the lines in a report in CO-PA drill-down 

reporting. The values contained in the fields can be aggregated with reference to 

the characteristics available or displayed at a lower level. Some of the value fields 

are: Sales quantity, Outgoing Freight, Revenue, and Qty discount. 

200. What is characteristic derivation? 

Characteristic derivation is a process through which you will derive values of 

other characteristics. Derivation lets you find values for certain characteristics 

automatically based on the known values of other characteristics, where these 

characteristics are logically dependent on one another. 

When an operating concern is generated, the system produces a standard derivation 

strategy containing all known dependencies between characteristics. You 

can display these by choosing View ® Display all steps . 

If you use the Derivation rule in derivation step type, some additional entry 

options are available: 

■ Under Maintain rule values, you will enter which values in the target fields 

must be placed in which characteristic values of the source fields. 

■ Under Characteristics, you can make additional entries that, for example, make 

it possible to enter a validity date for the step. 

201. What are the differences between account-based CO-PA and costingbased 

CO-PA? 

Table 1.4 shows the differences between account-based CO-PA and costing-based 

CO-PA.


Costing-Based CO-PA 

Account-Based CO-PA 

1. Uses characteristics and value fields 1. Uses cost and revenue elements to 

to display reports. 

display reports. 

2. In costing-based CO-PA, you can 2. Takes real cost and revenue from 

calculate anticipated cost. 

FI; hence you cannot calculate 

anticipated cost. 

3. Uses tables specific to CO-PA, which 3. Uses CO application tables. 

may or may not agree with FI. 

4. Revenue and cost of sales are posted 4. Revenues are posted when the 

when the billing document is posted. 

billing document is posted, while 

cost of sales is posted when FI 

posting occurs for goods issue. 

5. At a given point in time, it may or may 5. Always reconciles with FI. 

not reconcile with FI. 

TABLE 1.4 

Costing-based COPA Vs. Account-based COPA 

1.14 PRODUCT COSTING (CO-PC) 

202. What are costing variants? 

The costing variants in PC play a very important role in product cost calculation. 

Unless you maintain this, the system can’t calculate the cost of the product. It is 

through this variant that you tell the system where to obtain the cost of material, 

labor, activity prices, and Overhead (OH). 

The costing variant has five tabs: 

1. Costing Type—Here, you maintain the cost estimate like std cost, modified cost 

for different purposes, etc. 

2. Valuation Variant—This plays an important role, as it determines prices that 

the SAP system selects to valuate the quantity structure of the material cost 

estimate. It has five tabs. 

■ First tab for material valuation gives priority of prices for material cost. 

■ Second tab determines activity prices for process cost.

1.15 SD 87 

■ 

■ 

■ 

Third tab determines subcontracting price for subcontracting cost estimate. 

Fourth tab determines external processing cost price. 

Fifth tab determines which costing sheet you want to use for overhead 

costs. 

3. Date Control—This maintains the costing date for when this costing variant 

applies. 

4. Quantity Structure—bills of material (BOM) application for cost estimation. 

5. Transfer Control—In cross-company code costing, you use this to avoid repetitive 

costing. 

203. List several major functions of the PC module. 

Product cost planning enables: 

■ 

■ 

■ 

■ 

1.15 SD 

Calculation of standard internal cost for manufactured goods 

Calculation of works in progress (WIP) during month-end closing 

Calculation of period-end variances 

Settlement of product costs 

204. What is a credit control area? What relationship exists between credit 

control areas and company codes? 

Within an R/3 system, the credit control area is an organizational entity that 

monitors and controls the credit limit of various customers. A credit control area 

may have more than one company code, but one company code can’t be assigned 

to more than one credit control area. 

Note: You are assigning the credit control area to the company code, not vice 

versa. 

205. What is the difference between an inquiry and a quotation? 

An inquiry is a request from your customer for availability of stock and price. 

A quotation represents your responses to a customer inquiry.


206. What is a condition technique in SAP solutions? 

In SAP R/3, a condition technique refers to the procedures or system through which 

R/3 determines the price of the material. During sales order processing, R/3 uses a 

condition technique to determine the price of a product. 

207. What is the item category group? Where do you maintain it? 

An item category group represents the grouping of similar items into one group. The 

item category group determines how material will be processed in SAP solutions. 

When processing sales and distribution documents, the system uses the item category 

group to determine the item category. The item category is an attribute of material 

master, which determines what type of transaction is allowed for this item category. 

208. What is the access sequence in SD? 

You use various combinations, i.e., customer, material, etc., in SD to determine the 

correct account to be posted. The Standard Access sequence consists of following 

combinations: (1) Cust. Grp/Material Grp/Acct Key, (2) Cust. Grp/Acct Key, 

(3) Material Grp/Acct Key, (4) General, and (5) Acct Key. 

209. Which three organizational elements make up a sales area? Briefly explain 

their function. 

A sales area is a combination of the following three organizational entities: 

1. Sales organization— An organizational unit that sells and distributes products, 

negotiates terms of sale, and is responsible for these transactions. 

2. Distribution channel— A channel through which salable materials or services 

reach customers. Typical distribution channels include wholesale, retail, 

and direct sales. You can assign a distribution channel to one or more sales 

organizations. 

3. Division— Product groups can be defined for a wide-ranging spectrum of 

products. For every division, you can make customer-specific agreements on, 

for example, partial deliveries, pricing, and terms of payment. Within a division, 

you can carry out statistical analyses or set up separate marketing.

1.16 MM 89 

1.16 MM 

210. What is meant by materials requirements planning (MRP)? 

MRP is used to procure material in time and/or produce material in time. This 

process monitors incoming and outgoing stock within the Inventory Management 

(IM) module. MRP considers existing stock, sales orders, purchase orders, 

and production orders while creating material recommendations to fulfill the 

company’s commitment to its customers. 

211. What are special stocks in SAP MM? 

In the SAP MM module, you are managing stocks as special stocks. The attributes 

of special stocks are controlled through a special stock indicator. You are assigning 

special stock characteristics to stock, while processing stock movement in the 

SAP MM module. Broadly, there are two types of special stock from the IM point 

of view: 

■ A company’s own special stocks: 

■ Stock of material provided to vendor 

■ Consignment stock at customer 

■ Returnable packaging stock at customer 

■ Externally owned special stocks: 

■ Vendor consignment 

■ Returnable transport packaging 

■ Sales order stock 

■ Project stock 

212. What is meant by consignment stock? 

Consignment stocks are special stocks that are in your possession but ownership 

lies with the vendor. In the case of consignment stock, physical material is at your 

premises, while the vendor retains ownership of these materials. Your liabilities 

arise when you are issuing consignment materials to production orders or consuming 

them.


213. What is the difference between a contract and a scheduling agreement? 

In the SAP IM module, a contract represents an agreement between buyer and seller 

for the supply of material or services. There are two types of contracts: (1) quantity 

contract and (2) value contract. 

A scheduling agreement represents how material will be delivered during a 

period of time. 

You can create a contract through transaction code ME31K and a scheduling 

agreement through transcation code ME31L. 

214. What is the use of configurable material? 

Typically, the concept of configurable material is used for a made-to-order environment. 

This concept is useful where a lot of permutations and combinations exist 

for a product. For example, in the case of a laptop, there are various combinations 

possible with respect to hard drive capacity, processor, and other features. For configurable 

material, you will use a super BOM, which takes care of all possible alternative 

materials. A routing is also maintained, consisting of all possible operations 

that could be used. Configurable materials are either created in a material type that 

allows the configuration (in the standard system, the material type KMAT) or they 

are given the indicator Configurable in the material master record. 

215. Is it possible to generate a purchase requisition (PR) with reference to 

a scheduling agreement? 

You can create a PR with reference to another PO. A PR can’t be created with a PO 

or scheduling agreement. POs and scheduling agreements are outcomes of PR. You 

can create a PO with reference to a PR through transaction code ME21N. 

216. What is a standard price and a moving average price? 

A standard price and a moving average price are two different methods of 

valuating inventory. In the case of a standard price, inventory will be valuated 

at a fixed price, where in the case of a moving average price, the valuation price 

changes. Generally, you will use a moving average price for raw materials, spare 

parts, and traded goods. Standard prices are used for the valuation of finished and

1.17 TECHNICAL QUESTIONS 91 

semifinished goods. Table 1.5 shows how SAP R/3 calculates the moving average 

price (MAP). 

Date Receipts Issues Balance 

Qty Price Qty Price Qty Price MAP 

01/01/2009 100 1000 100 1000 10.00 

01/10/2009 150 1300 250 2300 9.20 

01/20/2009 80 900 170 1400 8.24 

TABLE 1.5 

Calculating the moving average price 

1.17 TECHNICAL QUESTIONS 

217. What is Open SQL versus native SQL? 

Open SQL consists of a set of Advanced Business Application Programming (ABAP) 

statements that run across the database. In other words, Open SQL is not database 

dependent. Thus, Open SQL provides a uniform syntax and semantics for all of the 

database systems supported by SAP solutions. Open SQL statements can only work 

with database tables that have been created in the ABAP dictionary. ABAP native 

SQL allows you to include database-specific SQL statements in an ABAP program. 

Most ABAP programs containing database-specific SQL statements do not run with 

different databases. If different databases are involved, use Open SQL. To execute 

ABAP native SQL in an ABAP program, use the statement EXEC. 

218. What is a workflow and what is its importance? 

The SAP Business Workflow is a tool that automates business processes within SAP 

solutions. You can use the SAP Business Workflow for simple business processes 

like approval procedures or more complex processes like month-end and year-end 

closing. The main advantages of the SAP Business Workflow are: 

■ Reduction of time, i.e., no waiting time


■ 

■ 

Increase in transparancy of the business process since you can store process 

documentation within the workflow 

Increase in quality through the reduction of manual processes 

You can configure the SAP Business Workflow through transaction code 

SWDD. 

219. How can you fi nd out what transaction codes a user used within a 

particular time span? 

You can use transaction code STAT to find out what activities or transaction codes 

were used by a user on a particular day. 

220. What is structure and what are its advantages? 

A structure is like a table in SAP solutions, but it does hold data. You are creating 

structure in the ABAP/4 dictionary like a table and it can be accessed from ABAP/4 

programs. During program run time, structure is used to transfer data between various 

objects. Any change to the definition of the structure in the ABAP/4 dictionary 

is automatically implemented in all programs. 

While data in tables is stored permanently in the database, structures only 

contain data during the run time of a program. 

221. What are internal tables? 

Internal tables are tables used only at run time that take data from other tables and 

store that data in working memory in ABAP. In ABAP, internal tables fulfill the 

function of arrays. While running an ABAP program, you are using internal tables 

to append, insert, delete, and manipulate data, which you extracted from other 

tables. Using internal tables increases system efficiency. A particularly important use 

for internal tables is for storing and formatting data from a database table within a 

program. They are also a good way of including very complicated data structures 

in an ABAP program.

1.17 TECHNICAL QUESTIONS 93 

222. What is IDOC? 

An IDOC is an intermediate document, which is used to exchange data between 

SAP R/3 and non-SAP systems. IDOCs are created through message types. IDOCs 

consist of three components: (1) control record, (2) data segments, and (3) status 

records. 

1. Control records consist of a sender’s name, a receiver’s name, the IDOC type, 

and the message type. 

2. The data segment consists of a sequential segment number, a segment type 

description, and a field containing the actual data of the segment. 

3. The status record shows the information status of the IDOC, i.e., whether it was 

processed or is to be processed. 

223. What is application linking and enabling (ALE)? 

ALE is a communication tool between SAP systems and/or non-SAP system. It 

integrates various distributed systems through its intelligent mechanisms. ALE 

technology facilitates rapid application prototyping and application interface development, 

thus reducing implementation time.

Chapter 2 

CERTIFICATION 

QUESTIONS AND 

ANSWERS 

2.1 QUESTIONS 

1. Where do you define the length of general ledger (G/L) account 

numbers? 

a. Transaction code OBC4 

b. Transaction code OB13 

2. When is a G/L master complete? 

a. After the chart of account (COA) segment data is created 

b. After the company code segment data is added to the COA segment data 

3. State True or False for the following statements, with respect to 

whether the same chart of account is being used by multiple company 

codes. 

a. All company codes will use the same COA data and company code segment 

data. 

b. All company codes will use the same COA segment data and different company 

code segment data. 

95

96 CHAPTER 2 CERTIFICATION QUESTIONS AND ANSWERS 

4. State True or False for the following statements, with respect to the 

appearance of the G/L account master. The appearance of the company 

code segment of a G/L account is based on : 

a. The account group under which G/L masters are created. 

b. Group account number/alternative account number that are assigned to G/L 

accounts. 

5. Account numbers control the appearance of the G/L master. (True/ 

False) 

6. How can you prevent duplicate vendors from being created? 

a. Checking the match code before creating a new vendor 

b. Switching on automatic duplication check in the vendor master 

7. State True or False for the following statements, with respect to document 

type. 

a. The document type controls what account types are allowed for posting. 

b. Field status of document header text and reference field. 

c. The document type indicates whether or not batch processing is allowed. 

d. None of the above. 

8. Posting keys are defined at: 

a. Client level 

b. Company code level 

c. Controlling area level

2.1 QUESTIONS 97 

9. What would be the effect if multiple company codes used the same 

posting period variant? 

a. Individual company codes can close or open posting periods for their respective 

company code. 

b. Opening and closing can be done centrally and will apply to all company 

codes. 

10. Generally, under what circumstances are two period ranges open for 

posting? 

a. During month end 

b. During year end 

c. For daily transactions 

11. What determines the posting period and fiscal year? 

a. Document entry date 

b. Document posting date 

12. Which of the following would be the baseline date? 

a. Document date 

b. Posting date 

c. Entry date 

d. None of the above 

13. The clearing document updates the clearing document number and the 

clearing document date fields of the open items that it clears. (True/ 

False)


14. You should have a separate cash journal for each currency. (True/ 

False) 

15. A down payment request updates and changes the G/L balance of the 

vendor/customer. (True/False) 

16. Employee tolerance and G/L tolerance limits work together. (True/ 

False) 

17. You can post to a reconciliation ledger. (True/False) 

18. An SAP R/3 system only contains a database server. (True/False) 

19. A database server contains all data and programs. (True/False) 

20. You can open more than six sessions of a particular system at a time. 

(True/False)


21. You can only have a year-dependent fiscal year. (True/False) 

22. A fiscal year normally has 12 normal periods and one or more special 

posting periods. (True/False) 

23. A shortened fiscal year will have exactly 12 posting periods. (True/ 

False) 

24. State True or False for each of the following statements. 

a. A company code can have more than one currency as a local currency. 

b. A company code can only have one local currency. 

c. None of the above. 

25. A retained earnings account is a company code–specific G/L account. 

(True/False) 

26. State True or False for each of the following statements. The business 

area is: 

a. Company code specific (True/False) 

b. Client specific (True/False) 

c. None of the above


27. Posting into a G/L account is controlled by the field status group (FSG) 

assigned to the G/L master. (True/False) 


a. You can have at least one retained earning account. 

b. The configuration of a retained earning account is optional. 


a. The G/L account group controls the document field status. 

b. The G/L account group controls the G/L account number ranges. 

c. All of the above. 


a. The G/L account ID and house bank ID should be the same. 

b. A G/L account can be assigned to more than one house bank. 

31. State True or False for each of the following statement. 

The G/L account for a bank is linked to 

a. A house bank is created under chart of account. 

b. A G/L account can be assigned to more the one bank key. 


a. A company code may have an operating COA and n number of group COAs. 

b. A company code should have only one operating COA.



a. The relation between the operating COA G/L and the group COA G/L is 1: n . 

b. The relation between the operating COA G/L and the group COA G/L is n :1. 

c. The relation between the operating COA G/L and the country COA G/L is 1:1. 

34. The G/L master consists of which of the following segments? 

a. Sales area data 

b. Purchase area data 

c. COA data 

d. Company code data 


a. You can assign two number ranges to a document type. 

b. Document number ranges are defined at the client level. 

c. Different company codes can have the same number of range intervals with 

respect to documents. 

d. You can use alphanumeric document number ranges for internal number 

ranges. 


a. You can define account groups at the client level. 

b. You can define account groups at the COA level. 


a. One or more reconciliation accounts can be assigned to a vendor or 

customer. 

b. The number range and account groups always have a 1:1 relation.



a. Customer or vendor masters are company code–dependent masters. 

b. Customer or vendor masters are client-dependent masters. 

39. The customer master has which of the following segments: 

a. COA segment and company code segment 

b. General data segment, company code segment, and sales area segment 

c. General data segment, company code segment, and purchase organization 

segment 

40. A document is uniquely identified by: 

a. Document number, company code, and fiscal year 

b. Company code, fiscal year, and document types 

c. Company code, fiscal year, and posting periods 


a. Document numbers can be alphanumeric and year specific. 

b. The document type controls account types to be posted and number ranges to 

be used. 


a. The relationship between the house bank and account ID is 1:1. 

b. The relationship between the house bank and account ID is 1: n . 

c. The relationship between the house bank and account ID is n :1. 


a. You can use sample accounts as reference documents. 

b. Sample accounts are created at the client level.



a. A G/L account can be blocked for posting at company code level or at the 

COA level. 

b. A G/L account is always blocked at the COA level. 

c. A G/L account that has been blocked can’t be opened for posting. 


a. You create all relevant information while posting for a one-time vendor. 

b. You maintain one-time vendor master records in SAP solutions. 

c. A one-time vendor master always has an external number range. 


a. A customer can be blocked from creating company codes. 

b. A customer can be blocked from posting in all company codes. 

c. A customer can be blocked from posting in selected company codes. 

47. One G/L account may appear in multiple groups in the same COA. 

(True/False) 

48. If multiple company codes use the same COA, G/L accounts are available 

for all company codes. (True/False) 

49. Do you need an account group for the creation of a vendor/customer 

master? (Yes/No)


50. Is a company code mandatory for the creation of a customer/vendor 

master? (Yes/No) 

51. Should all G/L masters have the same FSG within an account group? 

(Yes/No) 

52. Can you track G/L master, customer master, vendor master, and assets 

master changes in mySAP ERP? (Yes/No) 

53. In an automatic payment program (APP), mySAP ERP selects open items 

to be paid, posts payment documents, and clears open items by printing 

payment media. (True/False) 


a. In an APP, you can edit a payment proposal. 

b. You can block and unblock line items due for payment. 


a. The steps in an APP are: (1) parameter, (2) proposal, (3) payment run, and 

(4) printout. 

b. The steps in an APP are: (1) post payment document and (2) print payment 

medium. 

c. Payment run is identified by payment run ID.



a. One company will be sending company and paying company code in APP. 

b. You can only pay vendors through an APP. 

c. You can’t pay a down payment request through an APP. 

d. Checks lots are maintained through the SAP application menu. 


a. All company codes in a payment run must belong to the same country. 

b. You can’t edit payment proposals after a payment run. 


a. A dunning run updates customer/vendor master data with the last dunning 

running date. 

b. You can’t edit dunning data at the proposal stage. 

c. You can’t dun a one-time customer/vendor. 

59. What is the maximum number of dunning levels that can be configured? 

60. A dunning program considers all line items that have reached the due 

date + grace period. (True/False)



a. A dunning run updates the last dunning run date in the customer master 

record. 

b. A dunning run updates the dunning level in the customer master record. 

c. You can set a minimum amount for dunning charges on each dunning level. 


a. A financial statement version consists of a maximum of nine hierarchy levels. 

b. A financial statement version can be used by one company code. 

c. In a financial statement version, you can assign the debit balance and credit 

balance to different nodes. 

d. Foreign currency valuation is only possible for customer/vendor open items, 

not for G/L. 


a. Depreciation can be posted through background processing (batch input session) 

in SAP R/3. 

b. Depreciation can be posted through dialog mode in mySAP ERP. 


a. You can post transactions to an account in any currency only if that account 

currency is the same as the company code currency. 

b. The carry forward of an account balance is a month-end process. 

c. Exchange rate type M is the default exchange rate during FI posting. 

d. You can clear open items if the open items have the same dimensions in every 

respect. 

65. Sample accounts and account assignment models are used for reference 

templates while posting a FI document. (True/False)


66. Posting keys are used to decide which account type will be used for 

posting. (True/False) 

67. Cross-company document numbers consist of the document number 

of the first company code + the first company code + fiscal year. (True/ 

False) 

68. The reversal document always has an external document number. (True/ 

False) 

69. Financial statements can be generated in any currency. (True/False) 

70. The vendor master record consists of general data, company code data, 

and purchasing data. (True/False) 

71. A special G/L transaction can be posted into a normal reconciliation 

account. (True/False) 

72. A down payment request is a noted item and does not update the G/L 

balance. (True/False)


73. The regrouping of AR and AP reclassifies AR with a credit balance and 

vice versa. (True/False) 

74. The dunning area is used to distinguish dunning areas within an entity. 

(True/False) 

75. Line layout is used to display desired fields in the vendor line item display 

screen. (True/False) 


a. Business areas are used across company codes. 

b. Business areas are assigned to company codes. 

c. When the business area balance sheet is enabled, the business area is a required 

entry during posting. 

d. Use of the business area is optional. 


a. The company code is assigned to a plant. 

b. A COA can be assigned to multiple company codes. 

c. A plant can be assigned to multiple company codes. 

78. The three tiers in an SAP R/3 system are the presentation server, application 

server, and database server. (True/False)


79. The company code is the entity in SAP R/3 that provides financial 

statements for external reporting. (True/False) 


a. A company code can be assigned to many plants. 

b. A company code and a company have a 1: n relationship. 

c. A controlling area may have multiple company codes. 

d. A company code can be assigned to an operating concern. 

81. The implementation of business area entities is optional for FICO 

implementation. (True/False) 

82. The main menu, application menu, and task menu represent the menu 

hierarchy in an SAP R/3 system. (True/False) 

83. On the logon screen, only the client, user ID, and password field appear. 

(True/False) 

84. Which of the following is seen by the user in the message bar? 

a. Transaction code 

b. Program names 

c. Screen variants 

d. Information, error, and warning messages


85. When a user has multiple sessions open, the system saves all opened 

sessions when he saves. (True/False) 

86. A business area is directly assigned to a company. (True/False) 

87. ABAP stands for Advanced Business Application Programming. (True/ 

False) 

88. The configuration menu resides within the application menu. (True/ 

False) 

89. There are three data types within SAP: master data, table data, and 

transaction data. (True/False) 

90. All company codes within a controlling area should have a COA. (True/ 

False) 

91. A parked document changes G/L balances. (True/False)


92. When you cancel/delete a parked document, another number is created. 

(True/False) 

93. The document number range in FI is shared by all company codes within 

a client. (True/False) 

94. GR/IR clearing has to be done manually. (True/False) 

95. Through an APP, you can pay the vendor as well as the customer. (True/ 

False) 


a. You create the bank master at the country level. 

b. Once the address of the company code is configured, you can’t change it. 

c. It is possible to configure installment payments based on amount. 

d. An SAP solution first posts to the G/L, and then to sub ledgers 


a. All of the data and programs are stored in the database server in SAP R/3. 

b. You use /o to end the current session. 

c. You can execute a program directly from the command box. 

d. The assignment of company codes and business areas is 1:1.



a. The G/L master consists of two segments: (1) general data and 

(2) company code data. 

b. A COA can be assigned to more than one company code within a client. 

c. A year-dependent fiscal year needs to be configured each year. 


a. Customer/vendor master data is client-dependent master data. 

b. FI document header data is stored in table BKPF. 

c. Company code segment data of the G/L master is stored in table SKB1, while 

general data is stored in table SKA1. 

d. Document number ranges are either internal or external for all document types 

of a company code. 


a. A fiscal year is either year dependent or year independent. 

b. Many sales organizations can be assigned to a company code. 

c. A document number range can be assigned to more than one document type. 

d. Posting keys are company code–dependent data. 


a. An asset class is client-dependent master data. 

b. A line item managed account must have open item management activated. 

c. An SD payment term has priority over an FI payment in cases where the document 

originated from the SD module. 

d. All company code within a client must use the same COA. 


a. The document posting date determines the baseline date of a line item. 

b. You can’t override payment terms assigned to a customer/vendor master while 

posting a transaction.


c. You can assign more than one payment term to a customer/vendor master. 

d. The document type determines the reversal document type. 


a. SAP R/3 always assigns document number in case of internal number range. 

b. A purchase order creates an accounting document within SAP R/3. 

c. You can see all linked documents in SAP R/3. 


a. An APP selects all vendors/customers to be paid. 

b. An APP selects open items to be paid for defined customers/vendors. 

c. An APP clears the open items, which are paid. 


a. You can block or remove any payment block in the payment proposal edit phase 

of an APP. 

b. You can remove a payment block from the vendor/customer master during the 

APP edit phase. 

c. Line items that can be paid are listed in the exception list. 

106. An automatic payment run is identified by run date and identification. 

(True/False) 

107. As per best practice, the payment run date should be the current date. 

(True/False)



a. A dunning program is meant for dunning of regular customers, not for a 

one-time account. 

b. You can assign more than one dunning program to a customer. 

c. You can set the minimum limit for transactions to be dunned. 

d. A dunning program posts dunning interest to G/L accounts. 

109. A customer can have a maximum of nine dunning levels in a standard 

SAP-delivered program. (True/False) 


a. You can calculate balance interest with interest type “P.” 

b. You assign an interest ID to line items while posting a transaction. 


a. You can configure a financial statement version up to 10 levels. 

b. In a G/L external number range, the G/L number can be more than 

10 characters. 

c. It is possible to reclassify a customer under a different group. 

112. A doubtful receivable is a special G/L transaction. (True/False) 

113. You can run foreign currency valuation only for customers or vendors, 

not for G/Ls. (True/False)



a. You can’t clear an open item by reversing it. 

b. Profit center accounting (PCA) is part of the FI module in mySAP ERP. 

c. You can settle an IO to the G/L through external settlement. 


a. Depreciation posting happens through a batch input session in SAP R/3. 

b. Depreciation posting happens through direct posting in mySAP ERP. 

c. A transaction can be posted to G/L account, which doesn’t have company code 

segment. 

d. Even if a G/L account is blocked at a COA level, you can post it. 


a. You can select a reconciliation ledger while posting to a vendor. 

b. Payment terms are company code dependent. 

c. A down payment request clears open items in AP and AR. 

d. When you are clearing a debit item with a credit item, the SAP system doesn’t 

create a clearing document. 


a. The down payment due date is determined by the SAP solution. 

b. The G/L master is a company code–dependent master. 

c. You can have alphanumeric characters in an external number range. 

d. All special G/L transactions are posted to the normal reconciliation account of 

the vendor/customer. 


a. The company code is part of the line item information in an FI document. 

b. You can see document currency and company code currency during line item 

display.


119. R/3 stands for real-time three-tier architecture. (True/False) 

120. The FI module in mySAP ERP consists of the GL, AP, AR, AA, and 

PCA modules. (True/False) 

121. A controlling area can be assigned to multiple operational concerns. 

(True/False) 

122. More than one purchase organization can be assigned to a company 

code. (True/False) 

123. Costing-based CO-PA shares tables with other CO modules. (True/ 

False) 

124. The creation of company codes is an IMG activity. (True/False) 

125. The selection variant helps to standardize selection criteria for repetitive 

use. (True/False)


126. The credit control area provides integrated solutions for the SD and AR 

components of SAP solutions. (True/False) 

127. A company code can be assigned to an operating COA, country COA, 

or group COA. (True/False) 

128. The G/L account groups control number range and G/L master field 

status. (True/False) 

129. The G/L account and primary cost element have a 1:1 relationship. 

(True/False) 

130. In addition to the standard hierarchy, you can have an alternative profit 

center hierarchy. (True/False) 

131. Statistical order permits external settlement. (True/False) 

132. The SD billing document generates an FI document. (True/False)


133. A purchase order creates a commitment posting into CO if commitment 

posting is active in the controlling area. (True/False) 

134. An FI document has the following areas: header section, line item section, 

and template areas. (True/False) 

135. The FI document number range is assigned to document types. (True/ 

False) 

136. Standard SAP delivered account types are A, D, K, M, and S. (True/ 

False) 

137. Posting keys determine account types, debit and credit logic, and line 

item field status. (True/False) 

138. In mySAP ERP, leading and nonleading ledgers will have the same fiscal 

year variant. (True/False) 

139. A normal fiscal year can have a maximum of 12 regular posting periods 

and 4 special periods. (True/False)


140. Negative reversal posts a transaction with a negative sign on the same 

side of the G/L account. (True/False) 

141. The customer and vendor masters can only be created in the FI module. 

(True/False) 

142. The customer master is divided into four parts: (1) general data, 

(2) company code data, (3) sales organization data, and (4) credit control 

area data. (True/False) 

143. The employee tolerance limit determines the allowable line item tolerance 

limit for clearing open items. (True/False) 

144. Posting keys determine the document types to be used while posting a 

business transaction. (True/False) 

145. The document type is company code dependent. (True/False) 

146. Posting keys 01 and 11 are used for G/L posting. (True/False)


147. The document date determines the posting period and fiscal year. (True/ 

False) 

148. When you are creating the vendor master centrally, the system allows 

you to create all segments of the vendor master. (True/False) 

149. The house bank ID is always a numeric ID. (True/False) 

150. When the controlling (CO) module is active, you can post an expense 

without a cost object. (True/False) 

151. In the standard system, the posting key 40 refers to G/L credit. (True/ 

False) 

152. While posting to a one-time vendor, the user needs to enter vendor 

information like vendor name, address, etc., at the line item level. (True/ 

False) 

153. A parking document is always a balanced document, i.e., debits = credits. 

(True/False)


154. A shortened fiscal year is always a year-dependent fiscal year. (True/ 

False) 

155. In order to get the opening balance in a new fiscal year, you need to carry 

forward GL, AR, and AP. (True/False) 

156. A user can enter the currency transaction rate if the document currency 

is different from the company code currency. (True/False) 

157. The tax category dictates whether or not a tax code is required for a line 

item. (True/False) 

158. If you want to display a document line item based on the posting date, 

then you should use short key “001.” (True/False) 

159. All open item managed accounts should have the line item activated. 

(True/False) 

160. If line item management is activated, then you can drill down to the line 

item level from the G/L balance. (True/False)


161. In SAP R/3, you can post up to 999 line items in a document. (True/ 

False) 

162. For AP, AR, and AA, you use reconciliation accounts, which are updated 

through batch processing. (True/False) 

163. Validation checks for conditions and updates the required fields. (True/ 

False) 

164. For every G/L account, you should have a cost element. (True/False) 

165. A company code should have one G/L account. (True/False) 

166. For a reconciliation account, you should always set up an external number 

range. (True/False) 

167. The fi eld status group is created at the company code level. (True/ 

False)

2.2 ANSWERS 123 

168. Once you cross a posting period, the system closes the posting period 

automatically. (True/False) 

169. While posting to a vendor, you are selecting the vendor group and 

vendor. (True/False) 

170. A tax procedure is a client-level configuration. (True/False) 

171. A special G/L transaction always posts to an alternative reconciliation 

account. (True/False) 

2.2 ANSWERS 

1. b 

2. b 

3. a-False, b-True 

4. a-True, b-False 

5. False 

6. b 

7. a-True, b-True, c-True, d-False 

8. a 

9. b 

10. a, b 

11. a 

12. a, b, c 

13. True 

14. False 

15. False 

16. True


17. False 

18. False 

19. False 

20. False 

21. False 

22. False 

23. False 

24. a-False, b-True, c-False 

25. False 


27. True 

28. a-True, b-False 

29. a-True, b-True, c-True 





34. c, d 

35. a-False, b-False, c-True, d-False 


37. a-False, b-False 


39. b 

40. a 

41. a-True, b-True 


43. a-False, b-False 

44. a-True, b-False, c-False 


46. a-False, b-True, c-True 

47. False 

48. False 

49. Yes 

50. No 

51. No 

52. Yes 

53. True 



56. a-False, b-False, c-False, d-False 



59. 9 (Nine) 

60. True 


62. a-True, b-False, c-True, d-False 

63. a-True (Up to 4.6C), b-False 

(After 4.6C) 


65. False 

66. True 

67. True 

68. False 

69. True 

70. True 

71. False 

72. True 

73. True 

74. True 

75. True 

76. a-True, b-False, c-True, d-True 

77. a-True, b-True, c-False 

78. True 

79. True

2.2 ANSWERS 125 


81. True 

82. True 

83. False 

84. d 

85. False 

86. False 

87. True 

88. False 

89. True 

90. True 

91. False 

92. False 

93. False 

94. True 

95. True 

96. a-True, b-False, c-False, 

d-False 

97. a-False, b-False, c-False, 

d-False 





102. a- Not always, b- False, c- False, 

d-True 

103. a-True, b-False, c-True 

104. a-False , b-True, c-False 

105. a-True, b-False, c- False 

106. True 

107. True 

108. a-False, b-False, c-True, d-False 

109. True 

110. a-False, b- False 

111. a-False, b-False, c-False 

112. True 

113. False 


115. a-True, b-True, c-False, d-False 

116. a-False, b-False, c-False, 

d-False 

117. a-False, b-False, c-True, 

d-False 


119. True 

120. True 

121. False 

122. True 

123. False 

124. True 

125. True 

126. True 

127. False 

128. True 

129. True 

130. True 

131. False 

132. True 

133. True 

134. True 

135. True 

136. True 

137. True 

138. False 

139. True


140. True 

141. False 

142. False 

143. False 

144. False 

145. False 

146. False 

147. False 

148. True 

149. False 

150. False 

151. False 

152. True 

153. True 

154. True 

155. True 

156. True 

157. True 

158. True 

159. True 

160. True 

161. True 

162. True 

163. False 

164. False 

165. False 

166. False 

167. False 

168. False 

169. False 

170. True 

171. True

Chapter 3 

ISSUES AND 

RESOLUTIONS 

A ticket is a generic name for claims made by the end user to technical support. 

At the very least, the end user has to send an email with a description of the 

issue, the transaction code, and the program or report name. There are some 

applications available to manage these jobs, such as Quality Center from HP, 

ClarifyCRM ® , and ManageNow ® , among others. The tickets usually have 

a priority scale: T1 (meaning the issue must be handled the same day, T2, 

T3, etc. The person in charge of each module for analysis and resolution 

handles those tickets. If it involves configuration, when you have missing 

e.g. cost center, currency or customized reports discrepancy or for third part 

as ABAP developers for debug or include functionality. Depending on the 

nature of the ticket and resolution, necessary code changes will be done in the 

development server. Once the SAP team is satisfied with unit testing, changes 

will be promoted to the quality environment for user testing acceptance. Once 

changes are approved by the user, the SAP team deploys the changes in the 

production environment. 

This chapter presents issues that may arise while using SAP solutions and 

discusses ways to resolve those issues. 

3.1 SAP GENERAL 

Issue No.: 1 

The user is trying to create a vendor for a particular company code. In the initial 

screen for the customer, the company code was set to the default and the user 

is trying to create another company code. 

For rapid data entry, some important parameters such as company code and 

controlling area are set as the default while setting the user profile. If the security 

role allows, the user can reset or define his own parameters through transaction 

127

128 CHAPTER 3 ISSUES AND RESOLUTIONS 

code SU01. In transaction code SU01, you will find a Parameter tab; this is 

where you make all default settings. Check the default value for parameter ID 

BUK. If you don’t want any default values, remove them. 

3.2 GENERAL LEDGER (G/L) ACCOUNTING 

Issue No.: 2 

The user is not getting the drop-down list of G/L accounts that he defined through 

FS00 while posting through transaction code FB50/F-02. 

While entering a transaction, the user usually presses F4 to select a G/L account 

from the chart of account (COA). The SAP R/3 system displays all available 

accounts that are created for the desired company code and COA in question. 

If the user is not getting the G/L account in the drop-down list, try one of the 

following: 

1. Check if the G/L accounts have been created in the company code you are 

posting. 

2. Make sure you have selected the correct company code in T-code FB50. 

3. The drop-down has a personal list and a global list. If you are in the personal 

list, switch to the global list. 

Issue No.: 3 

My client raised a PO at USD 13 for 50 qty. A goods receipt MIGO transaction 

was done at that price. Now my client wants to do a MIRO transaction at USD 

14 for 50 qty. 

This situation can be handled in two different ways: (1) price difference or 

(2) reversing MIGO and repost MIGO with correct price. 

1. At the time of the MIRO transaction, you have an option to post a price 

difference. In the MIRO transaction, enter the G/L account for price 

difference and amount (i.e., $1). 

2. Reverse the MIGO entry, make changes in the PO, then once again do the 

MIGO and MIRO transactions. 

Issue No.: 4 

How can you add a new column in an open item clearing transaction with T-code 

F-03? Right now you have a document number, document date, document type,

3.2 G/L ACCOUNTING 129 

posting key, and amount. You need to add a posting key and amount in the 

transaction fields in the screen. 

1. Go to the Clearing G/L Account Process Open Item screen using T-code 

F-03 from the menu bar. 

2. Select Settings and Change line layout . 

3. Select the Create button. 

4. Give the line layout a name and description, and press Enter . 

5. Select the Insert after button to view the available fields. 

6. Select the required field by double-clicking on that field. The required field 

is automatically listed under your own layout. 

7. Repeat the process for each field required to create your layout and save. 

8. Go back to the Clearing G/L Account Process Open Item screen, and select 

the Editing option button under the line layout variant for the G/L account 

clearing transaction. 

9. Give your variant a name and save. 

Issue No.: 5 

The user wants to add a trading partner as selection criteria in the F-03 screen. 

This does not come with the standard screen. 

You are using transaction code F-03 to clear open items for a particular 

G/L account. While offsetting debit transactions with credits, depending 

upon business requirements, the user will select one of the selection options 

provided in that screen. The SAP R/3 system will pull all open items based on 

the selection criteria. The standard SAP R/3 system comes with very limited 

selection criteria; however, you can include a new selection field and change the 

sequence of the selection criteria. To add a new selection field or change the 

selection criteria sequence, you have to configure the SAP R/3 system through 

transaction code O7F1. 

Issue No.: 6 

There are a few G/L accounts where line item displays are not activated. The 

client would like to see what entries are actually hitting these accounts. 

There are two possible solutions regarding this problem. SAP recommends the 

first solution because only standard means are used. The second solution requires 

the usage of a correction report and is therefore a consulting solution.


n 

n 

Standard solution: 

1. Create a new account and set the options according to your requirements. 

Be sure to set the line item display indicator (SKB1-XKRES). 

2. Transfer the items from the old account to the new account. You can 

only do this for accounts that you cannot automatically post to. As an 

alternative, you can transfer the balance completely. 

3. Lock the old account for postings. 

Consulting solution: 

1. Manipulate all documents that were posted in the past. You can use the 

correction program RFSEPA01 (contained in the standard system as 

of release 3.0D). Read the document carefully. 

2. For releases prior to 3.0D, a corresponding correction program is 

available on SAPSERV3. 

While creating the G/L account, utmost care should be taken with the open 

item management and line item management attributes of the G/L account. 

Issue No.: 7 

While creating G/L accounts, some of the G/L accounts were wrongly kept as 

open item management. Now the user wants to remove open item man agement 

functionality through transaction code FS02, but the system is giving the 

following error message: “This account does not balance to zero.” 

System Response: 

You cannot switch the open item management specification on or off with this 

transaction. 

Procedure: 

If you want to switch this function on retroactively for a certain account, you 

should create a new account with the correct setting and use this to make a 

transfer posting of existing items. 

While creating the G/L master, you have to pay utmost attention to the setting 

of G/L master attributes. The situation here is changing the attribute of G/L 

accounts after posting the transaction. For this, you have two options: 

n 

Standard solution: 

1. Create a new G/L account. 

2. Transfer the account balance from the old G/L account to the new G/L 

account.


3. Switch off open item management for the old account and retransfer 

the G/L balance from the new account to the old account. 

Without making the account balance zero, you can’t switch an open item 

attribute of a G/L account. 

n 

Consulting solution: 

As an alternative, the user could try program RFSEPA03, depending on his 

SAP release. The user may have to copy the program to the “Z” program 

and remove the piece of code that prevents its use. Before adopting this 

procedure, make sure the user reads the program documentation and 

related SAP advice. 

FIGURE 3.1 RFSEPA03 correction report 

Issue No.: 8 

The client processed a bank statement and one of the line items in the bank 

statement overview in transaction FEBA shows the status as “ Complete.” 

However, the client used a wrong posting rule here. How can you change to 

the correct posting rule and process the transaction again so that the status is 

changed to “Posted”? 

There are two ways to handle this situation: 

n With a reverse bank reconciliation posting document. 

n By deleting the bank statement from the SAP R/3 system. To delete 

the bank statement, follow these steps: 

1. In T-code SM38, enter RFEBKA95 and execute the program. It will 

open the posted bank statement.


2. Deselect all and select the statement that is wrongly posted to delete it. 

3. Repost the bank statement through T-code FF67. 

Issue No.: 9 

The user has posted the documents without a business area. Now he wants 

to update them. You know that once a document is posted, the business 

area cannot be changed in the document overview. How can you solve this 

issue? 

To update the business area, you have two options: 

n 

n 

With the help of ABAP, you can update the business area in the 

posted document’s BSIS table. 

Or you could just reverse the original entry and repost the entry 

with business all the necessary details. 

It is advisable to use the second option. 

Issue No.: 10 

The user is posting monthly entries through T-code FBS1 and reversing them 

on the first of the next month through T-code F-81. The user wants to automate 

the reversal procedure. 

SAP solutions do come with automatic reversal of accrual entries, but the user 

has to execute transaction code F-81 for accrual reversal. Accrual entries are 

made through transaction code FBS1. SAP R/3 includes functionality to enter 

reversal dates while posting transactions. Once you are executing transaction 

code F-81, SAP R/3 will provide a list of accrual entries to be reversed. Instead 

of executing transaction code F-81 manually at an interval, you can create a 

batch job with a suitable variant and schedule it. 

Issue No.: 11 

A company code was assigned to an alternative COA. While creating a new 

G/L, the user keyed the alternative G/L in the G/L master. But while saving, 

the following error occurred: “Alternative Account number already assigned 

to account xxxxxx, cannot save.” What would be the reason and how can you 

solve this?


The error is due to the assignment of the operating G/L account to the country 

COA. You can’t assign multiple operating G/L accounts to one country COA 

G/L account. The relation between the operating G/L and country COA G/L 

is 1:1. When you are creating the G/L account with reference from some existing 

account, the alternative COA is also copied here; however, the country COA 

G/L is already assigned to an operating COA G/L account. This rule is not valid 

for group COA G/L accounts. 

Issue No.: 12 

After a transaction was posted, the client learned that an account that was 

classified as a balance sheet account should have been a P&L account. Now the 

client wants to reclassify the G/L account. Is this possible? 

The reclassification of G/L accounts from a balance sheet account to a P&L 

account or vice versa is possible. Here are the steps for such a conversion: 

1. You can reclassify a G/L account when its balance is zero. So clear all open 

items and bring your account balance to zero. 

2. Through T-code FS00, change the account type from a BS account to a P&L 

account. In a standard SAP system, you will get an error message. Note the 

message numbers. 

3. Change the message control by following this menu path: SPRO → Cross- 

Application Components → Bank Directory → Change Message 

Control (transaction code OBA5). 

4. Enter FH in the Area box (note that this is just an example) and press Enter for 

the next screen. In the New Entries: Overview of Added Entries screen, enter the 

two message numbers from step 2 and set the message to W (for Warning). 

FIGURE 3.2 Message control


5. Once you have completed step 4, reclassify your G/L account as mentioned 

in step 2 This time, the system will issue a warning message and your account 

will be reclassified once you save your changes. 

6. If your books of accounts are closed for the previous year, run program 

SAPF0110 to carry forward your balance to the new year. 

The reclassification of G/L accounts is advisable at either the end or 

beginning of the year. 

Issue No.: 13 

While analyzing accounts, the user found that certain document numbers are not 

appearing or are missing. For example, number range 17 is assigned to document 

type KA, which has the range 1700000000–1799999999 valid up to 9999. The 

current status shows that the next available number is 1790000000. During 

analysis, the user found that documents 1780000000–1780000010 are missing. 

The user wants to know why document numbers are missing. 

There are several reasons for missing document numbers. Here are two scenarios 

for this issue: 

1. One possible reason could be that these documents were initially parked and 

later deleted. In this case, those document numbers cannot be reused. 

2. The documents probably don’t exist. SAP solutions will set aside numbers 

for use when the system detects multiple document creation. If someone is 

creating documents, the system will make available, for example, the next 

10 numbers, “reserving them,” in essence. If the user only creates eight 

documents, two document numbers will be missing. 

You may use the following programs/reports to find out the reason for the 

missing documents: 

n 

n 

Program RFVBER00 provides a list of transactions that failed 

while updating the database. 

Program RFBNUM00 shows gaps in the FI number range. 

Issue No.: 14 

What is ranking order in an APP?

3.3 AP 135 

Ranking order represents priority assignments to each house bank. This helps 

the APP choose the house bank for payment in case there is more than one 

bank account satisfying the payment program parameters. 

3.3 ACCOUNTS PAYABLE (AP) 

Issue No.: 15 

The client printed 50 checks, of which 10 checks are spoiled or torn. Now the 

client wants to reprint the checks using the same APP. Is this possible? Or do 

you have to void those checks that are spoiled or torn? 

There may be times when the payment run has successfully posted 

payment documents and generated checks, but for some reason or other, the 

checks are not valid. In this situation, you have to void all of the printed checks 

and reprint them. To void and reprint, follow these steps: 

1. Execute transaction code FCH7 . You may navigate to FCH7 through the 

payment run. 

2. Execute transaction code F110 , enter the payment run ID and run date, then 

follow the menu path: Environment → Check information → Change → 

Reprint Check (t-codeFCH7). 

3. Enter the following details: 

n 

n 

n 

n 

n 

n 

Paying company ode 

House bank 

Account ID 

Number of the check to be voided 

Void reason code 

New check number 

4. Choose the path: Check → Reprint from the menu. 

You must follow this process in a situation where you have issued checks, 

but the checks are lost in post.


Issue No.: 16 

While posting outgoing payments through T-code F-53, the client received the 

error message ‘The entry 1210 is missing in table T043G’ and the system did 

not allow the posting payment document. 

The SAP R/3 system returns this error when it doesn’t find vendor/customer 

tolerance for your company code. In this example, you are processing an outgoing 

payment for a company code for which the vendor tolerance group is not defined. 

Create vendor tolerance through transaction code OBA3 (menu path: Finan cial 

Accounting → Accounts Receivable and Accounts Payable → Business 

Transactions → Outgoing Payments → Manual Outgoing Payments → 

Define Tolerances (Vendors)) for your company code. 

Issue No.: 17 

A vendor has requested that charges for services and materials be paid through 

separate bank accounts. For example, Vendor X supplies both services and 

materials and maintains two bank accounts—one for services and another for 

materials. The vendor requests that your client pay for services through bank 

account XXXXX and materials through bank account YYYYY. Is this possible 

when payments are made through an APP? 

A vendor may have multiple bank accounts. The SAP system provides the 

functionality to store and use information from multiple vendor bank accounts 

in the Payment transactions screen of the vendor master general data via 

transaction code FK03. 

FIGURE 3.3 Vendor bank accounts

3.3 AP 137 

You can use the BnkT (bank type) field in the vendor master to enter 

text differentiators for identifying the vendor’s bank accounts. If you leave 

the bank type field blank for a bank account in the vendor master, it serves 

as the default bank if the bank type information is missing in the vendor 

invoice. 

In this situation, you maintain information on both banks through 

the identifiers XXXXX and YYYYY. While entering the vendor invoice for 

services, select bank identifier XXXXX and for materials, select YYYYY. 

Now when you are paying through an APP, you will find you are remitting 

payment to two different bank accounts for the vendor for different 

services. 

Issue No.: 18 

A client posted a new document using T-code FBR2.Using T-code F110, payment 

was also posted for this invoice. 

After this transaction, it was found that the discount base was wrong and the 

system had taken the value based on the reference document. How can you 

reverse a payment posting and change the baseline date? 

You have posted a vendor invoice through transaction code FBR2. 

This transaction code is used to post a new document with reference to an 

existing document. While posting a new document through transaction code 

FBR2, SAP R/3 will copy all of the fields from the reference document; 

however, you can change whatever is needed. After having posted the vendor 

invoice, you also processed payment for the said document. To correct the 

baseline date, you have to correct the vendor document. Follow these steps 

to resolve this: 

1. Cancel the payment check via transaction code FCH8 (if the check is in your 

possession). This transaction voids the check, resets the clearing process, and 

reverses the payment document. 

2. Reverse the vendor document and post a new document with the correct 

discount base date. 

Issue No.: 19 

A user made an advance payment of INR 20000 through a special G/L transaction 

and deducted withholding taxes, at 2% (Rs. 400.00). Later the user received an


invoice for Rs. 30000. Now the client wants to deduct withholding tax on the 

balance amount, i.e., Rs. 10000, not on the entire amount. If the user uses T-code 

F-43, it deducts the tax on the full invoice value of Rs. 30000, which is Rs. 600, 

whereas the user wants the advance payment taken into account and wants to 

pay Rs. 200 (Rs. 600–Rs. 400). 

The user needs to deduct the tax on the entire amount at the time of invoice 

posting. While adjusting the advance payment against the invoice, the SAP R/3 

system will reverse the tax you have deducted. 

However, the user needs to make the following configuration in the payment 

withholding type for this tax reversal to take place: 

1. Follow the menu path: IMG → Financial Account Global setting → 

Withholding tax → Extend withholding tax → Calculation → 

Withholding Tax Type → Define withholding tax type for payment 

posting . 

2. Select the withholding tax type. At the bottom is a Central invoice window, 

in which the user will select the last radio button— Central inv. prop . 

FIGURE 3.4 

Configuring withholding tax 

Issue No.: 20 

The client needs to update a reference field in the header of a payment document 

with the check number generated by the system. Is there any way to update the 

payment document with the check number? 

Normally, you follow this process when you have issued a check that is written 

outside of the SAP solution. To maintain the check register, you have to update 

the payment document with check numbers. You can achieve this through

3.3 AP 139 

transaction code FCHU, which will update the payment document with check 

information. Follow these steps: 

1. Go to transaction code FCHU. 

2. Fill out the company code, house bank, and account ID areas and give the 

check number and payment document number for which you want to update 

the check number. 

3. Now, in the Target field selection of the check number section, select the 

field on which you want to update the check number. 

4. Then execute. 

FIGURE 3.5 Executing transaction code FCHU 

Issue No.: 21 

The user wants to print a check for a vendor down payment. To use T-code F-58, 

the system needs an open item. When the user makes an advance payment, there 

will not be any open items in the vendor account. 

Transaction code F-58 is used to process payment for existing open items. This 

transaction code can’t be used for processing advance payments. You have 

two options to handle this situation: (1) create an advance payment request


and pay through an APP or (2) create an advance payment document through 

transaction code F-48 and print a check through trans action code FBZ5. Here 

are the steps for both options: 

n 

n 

Option 1: 

1. Create a down payment request through transaction code F-47 . 

2. Run the payment program through transaction code F110 . 

Option 2: 

1. Use transaction code F-48 for advance payment to vendors. 

2. Based on the posted document number, print a check using transaction 

code FBZ5 . 

Issue No.: 22 

The user wants to make a check payment for petty expenses like stationery, 

travel, etc. Transaction code F-02 provides facility to capture check information. 

Without check information, the user can’t do bank reconciliation. The user is 

wondering if there is any workaround to deal with this situation. 

The user can use transaction code F-53 with doc type GZ (General Payments). 

In the Post Outgoing Payment: Header Data screen, the user has to provide 

bank data and the check number in the assignment field. After entering this 

information, the user can switch screens using F-02. To switch the screen, the 

user must follow these steps: 

1. From the system menu, choose Goto → Document overview (as shown 

in Figure 3.6). 

FIGURE 3.6 Using transaction code F-53 

2. After selecting Document overview, the user will get a new screen, in 

which he can enter expenses by entering the posting key and expenses G/L 

accounts. For bank reconciliation, the user can choose internal algorithm 

15 or 13 for the system to check the assignment field for check numbers.

3.3 AP 141 

Issue No.: 23 

While posting a transaction through T-code F-58, the user sees this error message: 

“Changes for vendor XXXXXX not yet confirmed.” 

In SAP R/3 configuration, you define certain fields as sensitive to have proper 

control and tracking on master data changes. If the user changes these sensitive 

field(s), someone other than the user who changed the master data has to confirm 

these changes. Until such confirmation, the SAP R/3 system does not allow any 

transactions with that trading partner. For example, you configure payment term as 

a sensitive field. To accommodate business requirements, user XXXXX updates the 

payment term with a new payment term ID. In order to carry out any transactions 

with this business partner, the changes have to be approved by another user. 

To confirm this change, the user has to use transaction code FK09. 

Follow this procedure before executing transaction code F-58. 

Issue No.: 24 

In transaction code F-33 (bills of exchange discounting), the user entered all data. 

When this is executed, the user receives a message that A/C No. 400400 (Interest 

account) requires an assignment to a CO object. What does this mean? 

When a controlling area is active, the user has to assign a valid cost object while 

posting expenses. In this case, bank interest is an expenses account, while posting 

selects a valid cost object. 

Issue No.: 25 

The user has executed transaction code F110 to pay 50 vendors, but he only 

has 20 checks left. Hence, when he ran the program, it printed the checks with 

random numbers. Now the problem is he is unable to cancel the payments, as 

there is no check number. How can he reprint or cancel the checks? 

The check printing program generated more checks than there are available 

check numbers. To handle this issue, follow these steps: 

1. Before proceeding, ensure that you have maintained a new check lot through 

transaction code FCHI. Be sure to correct your check lot before you do 

anything. 

2. In transaction code F110, enter the payment run ID and payment run date.


3. Go to the Printout/data medium tab and place the mouse curser on variant 

field against print program. 

4. From the system menu, choose Environment → Maintain Variants as 

shown in Figure 3.7. 

FIGURE 3.7 Using transaction code F110 

5. SAP R/3 will show the Maintain variant: XXXX screen, at the bottom of which 

you will see the section shown in Figure 3.8. 

FIGURE 3.8 Using transaction code F110 

6. Select Void and reprint checks from payment run already printed . 

This procedure will void all of the checks generated through this particular 

payment program. 

If you want to void and regenerate a particular set of checks, enter the check 

numbers you want to void along with a void reason code. 

7. Save the variant and come back to the payment run screen. Click on 

to generate the desired checks. 

Issue No.: 26 

The user defined multiple payments in the vendor master, i.e., “C” and “E.” As 

per business requirements, if the business is paying $10,000 or less, the check 

will be issued to the vendor. For a payment of more than $10,000, the business 

will pay though wire transfer. As a FICO consultant, the user is looking to you 

for guidance. 

You can define multiple allowed payment methods for the vendor by assigning 

the payment method in the vendor master.

3.4 AM 143 

While configuring the payment program through transaction code FBZP, 

you specify your allowable minimum and maximum dollar amounts for your 

payment method in the Payment Methods in Company Code step. 

FIGURE 3.9 Using transaction code FBZP 

Follow these steps to resolve this issue: 

1. Set the minimum to 0 and the maximum to 10000 for payment method “C.” 

2. Set the minimum to 10001 and the maximum to any larger amount for 

payment method “E.” 

Issue No.: 27 

It is not possible to post multiple customers in transaction code FB70. Can you 

use F-21? 

After starting with FB70 and making as many entries as you wish, if you need to 

post to other customer accounts you can press F6, which switches you back to 

the “old-style” data entry screen where you can post to as many other customer 

accounts as you wish using the old “posting key” method. 

3.4 ASSETS MANAGEMENT (AM) 

Issue No.: 28 

During data migration, the client forgot to transfer two assets whose book 

values are zero. Now the client wants to bring those assets to the asset portfolio 

for reporting purposes. The client needs both acquisition cost and accumulated 

depreciation in FI, including information from the AM module. As the data


migration is already done and the company code in question is already in the Go-live 

stage, how can you bring these two assets to FI—including the Asset module? 

The solution for this ticket would be: 

1. Set the company code status to “1”Asset data transfer not yet 

completed . 

2. Update legacy data using T-code AS91 . 

3. Enter the acquisition cost and accumulated depreciation using T-code 

OASV . 

Issue No.: 29 

The user wants to transfer an asset from one asset class to another asset class. 

A depreciation expense of the new asset class is assigned to another account 

determination. The user wants to transfer APC, accumulated depreciation, and 

depreciation expenses to G/L accounts that are assigned to the new asset class. 

Transaction code ABUMN has fields for ACP and accumulated depreciation. 

The user is wondering how depreciation expenses will be transferred from the 

old accounts to the new account. 

Through transaction code ABUMN, you can reclassify assets. In the 

reclassification process, you can only transfer APC and accumulated costs to a 

new asset class with immediate effect. Depreciation expenses will be transferred 

to the new G/L when you run depreciation. However, during the depreciation 

run, you can’t transfer previous depreciation expenses that were already charged 

to the cost center. But you can transfer current-year depreciation to the new 

depreciation expenses account. While entering the transaction in transaction 

code ABUMN, enter in the value date field the date on which you want to 

transfer your expenses to the new account. 

Issue No.: 30 

After the depreciation run, the user changed the capitalized date and the 

depreciation start date in the asset master. After making changes in the asset 

master, the user once again ran depreciation in “repeat run” mode. But changes 

made to the asset master did not hit depreciation, and the difference value is 

appearing as a planned value when checked in T-code AW01N. 

If you are making any changes in the asset master that affect depreciation that 

is already posted, you must follow this procedure:

3.4 AM 145 

1. Recalculate depreciation using T-code AFAR . 

2. Repeat the depreciation run using T-code AFAB . 

Issue No.: 31 

While running the year-end closing process through transaction code AJAB, the 

system gives the following errors: 

“Asset is incomplete and has to be completed. Message no. AU083” 

Diagnosis: 

The asset 000000100001-0000 is marked as incomplete. The asset was created 

by someone who did not have the ‘asset accountant’ asset view. When this is the 

case, the system expects that certain required fields are not maintained. 

Procedure: 

You can add the necessary specifications using the master data change transaction 

and the needed asset view. 

The system gives this type of error when the asset master was not properly 

maintained. You can execute transaction code AUVA to get the list of incomplete 

assets. After getting the list of incomplete assets, maintain the necessary data 

for the asset master and rerun transaction code AFAB. 

Issue No.: 32 

The user wants to post a transaction in the year 2008 through transaction code 

F-90. While posting the transaction, the system returns the following error: 

“You cannot post to asset in company code 9999 fiscal year 2008 Message no. 

AA347.” 

Diagnosis: 

“A fiscal year change has not yet been performed in Asset accounting for company 

code 9999.” 

Procedure: 

Check the asset value date. 

It looks like the user entered an asset acquisition in fiscal year 2008 for 

company code 9999, for which the assets accounting (AA) fiscal year change 

has not been carried out.


For AA, it is required that the user carry out the fiscal year change before 

entering a transaction in the new year. 

Run transaction code AJRW to change the fiscal year. The latest date you 

can run this transaction code is the last business day of a financial year. 

Issue No.: 33 

After running depreciation posting for a few months, a user found that a few 

assets were created in the wrong asset class. The user wants to reclassify these 

assets to the correct asset class. 

Or 

Issue No.: 34 

The user wants to move assets to another class because the assets were created 

under the wrong asset class. The old asset is capitalized on 08/01/2008. Since the 

depreciation key is 000, there is no depreciation running for that asset. 

Now the user wants to transfer the asset to another class, so the old asset is 

removed (or may be retired) with an acquisition date of 08/01/2008, so that the 

depreciation expenses can be calculated from 08/01/2008. 

This is a case of reclassification of assets. In transaction code ABUMN, = enter 

the APC and the accumulated cost along with an asset value date of 08/01/2008. 

In the receiver asset master screen, enter the desired depreciation key and the 

depreciation start date. 

Issue No.: 35 

Is it possible to integrate the sale of assets with the SD module? It will involve 

some sales tax and also the client wants to generate an invoice in the SAP solution. 

Can the SD module be used for this? 

Follow these steps for selling assets with integration with the SD module: 

1. Retire the asset without customer (T-code ABAON). This will credit the 

APC and debit the clearing account (which is a P&L account). 

2. Then take a nonvaluated material for asset sale purpose, and sell the same 

using SD. Make sure you have a separate pricing procedure/SD document 

type, etc., where the account key ERL will post to the clearing account 

mentioned in step 1. You can collect sales tax/excise, etc., as usual.

3.4 AM 147 

Issue No.: 36 

While capitalizing assets, the user capitalized $10,000. During the 

year-end process, the user realized he has wrongly capitalized $10,000 instead 

of $7,000. Now the user wants to rectify this by posting a credit transaction 

through transaction code F-90. While crediting, SAP R/3 returns the following 

message: “acquisition value negative in the area 15.” What does this mean? How 

can you solve this issue and correctly post the document? Is there any other 

way to decapitalize an asset? 

To see the negative book value check box, you will have to first activate it in 

the screen layout. To do this, go to Master Data → Screen layout for Asset 

depreciation areas, select the screen layout attached to the asset class to 

which the asset in question belongs, and click on Field group rules. Here you 

can make negative values optional. 

If you want to allow the negative book value for all of the assets created in 

that particular asset class, follow the menu path: Valuation → depreciation 

areas → Determine depreciation areas in the asset class. Select the asset 

class, click on the depreciation area, and check the negative book value check 

box. 

If you want to allow negative book values only for a particular asset, you 

can use transaction code AS02. Go to the Depreciation tab, double-click on 

depreciation area 15, and then check the negative values allowed check box. 

Issue No.: 37 

While creating assets under asset class XXXX, the user is getting default 

depreciation terms and the system does not allow changing depreciation terms. 

The user does not want the default depreciation key. How can you resolve this 

situation? 

It sounds as if the depreciation key has been set as the default for the asset class. 

Check this in the IMG by doing the following: 

1. Go to the Depreciation Areas screen layout using T-code OA21 . This 

transaction determines how fields of depreciation areas in the asset master 

behave. This transaction code controls whether or not fields are editable. 

2. Determine depreciation areas in an asset class using T-code OAYZ . This 

transaction code determines screen layout of the asset class and depreciation 

keys assigned to that asset class.


Issue No.: 38 

In AA the client has not closed the year 2005, and so 2006 cannot be closed. For 

2005, there are errors and recalculations required for depreciation. However, if 

this is done, it will hit the FI and figures submitted for 2005 will change in the 

SAP solution. From an audit perspective, this cannot be permitted. How can 

the user remedy this? 

The corrections must be made to enable you to close FI-AA for 2005 and carry 

forward into 2006. If these corrections will significantly change your balance 

sheet, you can “neutralize” them by posting manual entries to bring your overall 

balance sheet back to what has already been reported, and then reverse these 

in 2006. And convince your auditor accordingly. 

Issue No.: 39 

The user is trying to post unplanned depreciation for an asset for depreciation 

area 33, i.e., the depreciation area for group currency, using the transaction 

type 643 and T-code ABAA. While posting, the following message pops up: “In 

Dep. Area 01, you can post manual depreciation up to the amount 0.00 only.” 

The assets explorer shows the net book value as $1800. 

This error generally appears after posting the unplanned depreciation when 

the net book value of those assets after considering the planned depreciation 

becomes negative. Depreciation does not allow negative book values. 

Issue No.: 40 

When you retire an asset, you only want the depreciation that has been 

posted to be reversed, i.e., accumulated depreciation up to the last month 

has to be reversed. However, the system is also taking the current month’s 

unplanned depreciation into consideration when reversing accumulated 

depreciation and hence the profit and loss is calculated incorrectly. How can 

this be changed? 

You assign the period control method in the depreciation key. The period 

control method controls how depreciation will be calculated during acquisition, 

retirement, etc. Check the period control method assigned to your depreciation 

key, which in turn is assigned to the asset master.

3.4 AM 149 

Issue No.: 41 

The user is trying to create an asset master using transaction code AS01. He is 

able to see fields in the General, Time dependent, and Allocations tabs, but is 

not finding fields in the Depreciation Area tab. As a result, the user is unable 

to specify the depreciation key and life of an asset. 

1. Check your screen layout for depreciation areas (transaction code 

AO21 ). 

2. In T-code OAYZ, make sure that the depreciation areas are activated and 

a depreciation key is assigned. Also, check the screen layout rule for the 

depreciation area. It is the last column in the table after useful life and index. 

This is where you enter the depreciation screen layout. 

Issue No.: 42 

Suppose that during year end, the period for both March and April are open 

and the depreciation run for April is also executed. The asset year closing for the 

previous year is not done. Now an adjustment in depreciation is to be made in 

the previous year (for the March period) and the user has to run depreciation 

once again for March. Is this possible? 

Run a depreciation recalculation (transaction code AFAR) before you execute 

another depreciation run. 

Issue No.: 43 

Assume the following scenario in AA: 

Life of the asset: 3 years 

Original Cost: 60,000; Scrap Value: 15,000. 

The configuration was done in such a way that the SAP solution was taking 

the original cost as the basis for calculating depreciation. Thus, it is calculating 

depreciation as follows: 

1st Year: 20,000 

2nd Year: 20,000 

3rd Year: 5,000


However, the user requirement is that depreciation should be calculated based 

on original cost net of scrap value. That is, depreciation should be as follows: 

1st Year: 15,000 

2nd Year: 15,000 

3rd Year: 15,000 

This could be achieved by using T-code AFAMA in SPRO by resetting (for 

each depreciation key) the scrap value field as “Base Value is reduced by the 

Scrap Value Amount.” 

Issue No.: 44 

The user acquired his first set of assets in the month of February 2008 and is 

trying to run depreciation starting from February. While running depreciation, 

the system returns the following message: “According to the posting cycle, 

you should post period 001 next. Either enter period 001, which corresponds 

to the posting cycle, or request an unplanned posting run explicitly for this 

parameter.” 

If your posting cycle is monthly, then your SAP solution expects depreciation 

to run for every period in sequential order. So, you can’t run February until 

you have completed the January depreciation run. Since you have acquired 

assets in the month of February, you are not running depreciation for the 

month of January. However, SAP R/3 is expecting you to run depreciation for 

January also. To overcome this, you have to do one of the following: (1) run 

depreciation for the month of January and then the month of February or 

(2) select the unplanned posting run for February. The unplanned run lets you 

skip over periods (in instances like this). 

Issue No.: 45 

The user wants to attach JPG pictures of assets to the asset master record. How 

can he do this? 

You can attach JPG pictures to an asset master. From the asset master record 

menu, choose System → Services for Object → Create Attachment . 

Issue No.: 46 

In January 2008, a user noticed that assets purchased in 2007 were not recorded 

in the books of account. In the meantime, the user closed the books of account

3.4 AM 151 

for 2007. Now the user wants to disclose this asset in his books of account from 

January 2008. 

This issue can be handled in two different ways, depending upon user requirements, 

i.e., from which date the user wants to calculate depreciation expenses. 

1. If the user wants to calculate depreciation from January 2008, then post the 

asset acquisition using transaction code F-90 with reference to a vendor or 

using transaction code F-91 through a clearing account. 

2. If the user wants to charge depreciation starting from the original purchase 

date, then post the acquisition through transaction code ABNAN. Then enter 

that date, 07/01/2007 in this example, in the Orig. val.dat field as shown in 

Figure 3.10. 

FIGURE 3.10 Using transaction code ABNAN 

Issue No.: 47 

The user is configuring the depreciation key. He has a unique requirement for 

calculating depreciation for the month of acquisition as well as retirement. Here 

is the requirement: 

If the asset is purchased from the 1st to the 15th of a month, the depreciation 

should be calculated for the full month. If the assets are purchased after the 15th 

of a month, then no depreciation for the month of purchase is calculated. However, 

depreciation should be calculated for the full month for subsequent months.


The start date and end date of depreciation are controlled through the period 

control method. You are assigning a calendar here to control how depreciation 

will be calculated for the acquisition month. 

See your configuration by using transaction code OAVH (menu 

path: IMG → Financial Accounting → Asset Accounting → 

Depreciation → Valuation Methods → Period Control → Define Calendar 

Assignments). 

FIGURE 3.11 Additional settings for period control 

Issue No.: 48 

When the user is processing asset impairment through transaction code ABMR, 

the system pops up with the Depreciation Areas screen. The user does not want 

this pop-up screen. Is there any way of turning off this pop-up and defaulting 

to the appropriate areas? 

It is ideally advisable not to change this configuration. This pop-up window lets 

you select your desired depreciation areas for asset impairment. If you want 

to avoid this, you have to change the configuration through transaction code 

OA81. In this transaction code, you are setting automatic posting. 

Issue No.: 49 

How can the user change the screen layout for equipment masters in order to 

add warranty information?

3.4 AM 153 

If you are trying to put the warranty information on the equipment master data 

record itself, you can configure this in the IMG within the PM module. 

Follow the menu path: IMG → Plant Maintenance and Customer 

Service → Master Data in Plant Maintenance and Customer 

Service → Technical Objects → General Data → Set View Profiles for 

Technical Objects. 

The transaction code for Set View Profiles for Technical Objects controls 

various field layouts of the equipment master. 

Issue No.: 50 

A user needs help with the following situation: 

Some assets will be purchased for $50 million. Then, after using them for 

12 years, they can be sold for $5 million. So, the depreciable basis needs to be 

$45 million instead of $50 million over 12 years, or $3.750 million per year. 

The method will be straight line. So at the end of the 12 years, the net book 

value should be $5 million. 

The SAP R/3 system comes with two options to handle the scrap: (1) by defining 

an absolute percentage or (2) by entering an absolute value. 

1. You can define an absolute percentage in the scrap key and then assign 

the key to the asset master. To define the scrap key, use transaction code 

ANHAL (menu path: IMG → Financial Accounting → Asset Accounting → 

Depreciation → Valuation Methods → Further Settings → Define the 

Cutoff Value Key). 

FIGURE 3.12 Using transaction code ANHAL


2. Instead of a scrap key, you can enter an absolute amount in the asset master 

as a scrap value. 

Depending upon your other configurations, either the scrap value will be 

reduced before calculation of depreciation or the system will limit depreciation 

to the scrap value. 

Issue No.: 51 

The user posts an acquisition transaction through transaction code F-90 and 

expects the capitalization and depreciation start date to be filled by the system. 

SAP help says the capitalization date and depreciation start date will be filled 

by the system with the first acquisition date. But this is not happening in his 

case. How can this be resolved? 

As per SAP standard practice, on the first acquisition, the system will populate 

capitalization and the first depreciation date. If this is not happening, check 

your configuration setting in transaction code AO73 (menu path: IMG → Financial 

Accounting → Asset Accounting → Transactions → Acquisitions → Define 

Transaction Types for Acquisitions → Define Transaction Types for 

Acquisitions). 

FIGURE 3.13 Defining transaction types

3.4 AM 155 

In the screen that appears, shown in Figure 3.13, check whether the 

Capitalize fixed asset box is checked. If not, check it. 

Issue No.: 52 

While posting a transaction through transaction code ABSO- Miscellaneous 

Transaction, the system returns an error message. After further analysis, the user 

finds that his company code is activated for parallel currencies. How can the user 

set up depreciation areas for parallel currencies? 

If your company code is set up for multiple currencies and has implemented 

asset management, then be sure you are complying with the following steps: 

1. Verify how many currencies are active for your company code. You can 

verify this setting in transaction code:____ (menu path: IMG → Financial 

Acctg → Financial Acctg Global Settings → Company Code → Multiple 

Currencies → Define additional local currencies). 

2. Review your depreciation areas in AA. In case of multiple currency scenarios, 

you should have one additional depreciation area for each currency. You can 

check this setting in transaction code OADB (menu path: IMG → Financial 

Acctg → Asset Accounting → Valuation → Depreciation Areas → Define 

Depreciation Areas). 

3. For each additional depreciation area, define the depreciation transfer rule 

with transaction code OABC (menu path: IMG → Financial Acctg → Asset 

Accounting → Valuation → Depreciation Areas → Specify Transfer of 

Depreciation Terms). You must set up the transfer values for additional 

depreciation areas from book depreciation area 01. 

4. Similar to step 3, you have to set up the APC transfer rule. You can set up this 

transfer rule through transaction code OABD (menu path: IMG → Financial 

Acctg → Asset Accounting → Valuation → Depreciation Areas → Specify 

Transfer of APC Values). 

5. Now you can set up currency for additional depreciation areas through 

transaction code OAYH (menu path: IMG → Financial Acctg → Asset 

Accounting → Valuation → Currencies → Define Depreciation Areas 

for Foreign Currencies).


3.5 COST CENTER ACCOUNTING (CCA) 

Issue No.: 53 

The canteen cost center costs (for example, Rs. 10,000) were to be 

allocated to other receiving cost centers with “No. of Employees” as the 

statistical key figure. The canteen cost center also has some employees, so it is 

becoming both the sender and the receiver for itself. The problem is that when 

trying to allocate the costs through the distribution method, the system is first 

allocating some portion of the costs (for example, Rs. 500) back to the canteen 

cost center and then reallocating the costs to the other cost centers, so that in 

the end, the debit and the credit balances for the canteen cost center is showing 

Rs. 10,500 (10,000 + 500). When trying the assessment method, however, the 

system is sending the portion of the canteen cost center costs back (Rs. 500), it 

is not reallocating them to the other cost center, and the debit side is showing 

Rs. 10,500 while the credit side is only showing Rs. 10,000. 

When defining assessment, be sure to check the check box for iterative. 

This will repeatedly allocate the costs to other cost centers until the balance 

becomes zero. 

Issue No.: 54 

A client posted an entry to 0001 cost center instead of 4000. Now the client wants 

to correct the posting without revising the document. How can the correction 

be done without reversing the document? 

Using T-code KB11N, you can repost the costs from one cost center to another 

cost center. 

3.6 PROFIT CENTER ACCOUNTING (PCA) 

Issue No.: 55 

While posting the AP balance to PCA through transaction code 1KEK, the user 

found that some of the line items are posted to a dummy profit center. The user 

is expecting these to go to specific profit centers.

3.7 NEW G/L 157 

A customer and vendor balance consists of open items, i.e., those that are yet to 

offset. While transferring balances, the system looks for profit centers from the 

offsetting entry. In the case of open items, the system will not find an offsetting 

entry and will post line items to a dummy profit center. You can transfer the 

posting from a dummy profit center to another profit center through transaction 

code 4KE5. 

3.7 NEW G/L 

Issue No.: 56 

The user has reported that the system is not splitting document type SA but is 

splitting other document types. 

In the standard configuration, document type SA is assigned to transaction 

type 0000, to which no splitting rule is assigned. In these circumstances, the 

system is expecting that you will enter an account assignment while entering a 

business transaction. 

See how your system is configured in the following menu path: 

n Financial Accounting (New) → General Ledger 

Accounting (New) → Business Transaction → Document 

Splitting → Classify document types for document splitting 

n Financial Accounting (New) → General Ledger 

Accounting (New) → Business Transaction → Document 

Splitting → Classify GL account for document splitting

Chapter 4 

CONFIGURATION 

STEPS 

Configuring SAP software is a job for a consultant, who is required to do a 

lot of homework before the system goes live. The configuration of an SAP 

solution depends upon the client’s requirements and the business practices of 

the industry. This chapter covers the general configuration sequences that are 

common across industries. 

To configure the SAP FI module, you can divide the configuration process 

as follows: 

n 

n 

n 

n 

n 

n 

Enterprise Structure (ES) 

General Ledger (G/L) Accounting 

Accounts Payable (AP) 

Accounts Receivable (AR) 

Bank Accounting (BA) 

Assets Accounting (AA) 

Similarly, you can divide the controlling as follows: 

n 

n 

n 

n 

n 

n 

n 

General Controlling (CO) 

Cost Element Accounting (CEL) 

Cost Center Accounting (CCA) 

Internal Order (IO) 

Profit Center Accounting (PCA) 

Profitability Analysis (PA) 

Product Costing (PC) 


The following steps are the minimum configuration requirements for FI company 

codes. These may vary depending upon implementation requirements. 

159

160 CHAPTER 4 CONFIGURATION STEPS 

Steps Function Name and Path T-code 

1 Def ine Company: 

IMG → Enterprise Structure → Def inition → Define 

Company 

2 Def ine Company Code: 

IMG → Enterprise Structure → Definition → Define/Delete/ 

Check Company Code 

3 Assignment of Company Code to Company: 

IMG → Enterprise Structure → Assignment → Financial 

Accounting → Assign company code to company 

4 Maintain Fiscal Year Variant (FYV): 

IMG → Financial Accounting → Financial Accounting Global 

Settings → Fiscal Year 

5 Assign Company Code to FYV: 


Setting → Assign company code to fiscal year variants 

6 Define Variants for Open and Closing Posting Periods: 


Settings → Document → Define Posting Period 

7 Open and Closing Posting Periods: 


Settings → Document → Open & Closing Posting Period 

8 Assign Posting Period Variants to Company Code: 


Setting → Document → Assign posting period variants 

to company code 

9 Document Number Ranges: 

IMG → Financial Accounting → Financial Accounting 

Global Settings → Document → Define Document Number 

Ranges → Overview 

10 Maintain FSVs: 


Settings → Line Item → Control → Define Field Status 

Variants 

OX15 

OX02 

OX16 

OB29 

OB37 

OBBO 

OB52 

OBBP 

FBN1 

OBC4 

Continued



11 Assign FSV to Company Code: 


Settings → Line Item → Assign FSV to company code 

12 Define Tolerance Groups for Employees: 


Settings → Line Item → Define Tolerance groups for employees 

13 Edit Chart of Account (COA): 

IMG → Financial Accounting → General 

Ledger Accounting → G/L Accounts → Master 

Records → Preparation → Edit Chart of account list 

14 Assign Company Code to COA: 



Records → Preparation → Assign Co Code to Chart of Account 

15 Define A/C Group: 



Records → Preparation → Define Account Group 

16 Define Retained Earnings A/C: 



Records → Preparation → Define Retained Earning Account 

17 Enter Global Parameters: 

IMG → Financial Accounting → Company Code → Enter 

Global Parameters 

18 Maximum Exchange Rate Difference: 


Settings → Maximum exchange rate difference 

OBC5 

OBA0, OBA4 

OB13 

OB62 

OBD4 

OB53 

OBY6 

OB53 

TABLE 4.1 

4.2 GENERAL LEDGER ACCOUNTING (FI-G/L) 

The following are the minimum configuration requirements for the FI-G/L 

submodule.



Define Tolerance Groups for G/L Accounts: 

IMG → General Ledger Accounting → Business 

Transactions → G/L Account Posting → Open Item 

Clearing → Clearing Differences → Define Tolerance 

Groups for G/L Accounts 

Sample Accounts: If you are implementing the sample account concept in 

your project, you need to configure the following steps. 

1 Maintain List of Rule Type: 

IMG → General Ledger Accounting → G/L 

Accounts → Master Records → Preparation → Additional 

Accounts → Sample Accounts 

2 Define Data Transfer Rule: 




3 Assign Company Code to Rule Type: 




4 Create Sample Accounts: 




OB15 

FSK2 

OB67 

FSM1 

Intercompany transactions: This step is required for automatic posting of 

intercompany transactions. 

1 Prepare Cross-Company Code Transactions: 


Transactions → G/L Account Posting → Prepare Cross- 

Company Code Transactions 

OBYA 

Continued

4.3 FI-AP 163 

Function Name and Path 

T-code 

Foreign Currency Transactions: If you are expecting that your SAP solution 

will handle foreign currency transactions, then configure this step. 

1 Define Accounts for Exchange Rate Differences: 



Clearing → Define Accounts for Exchange Rate 

Differences 

OB09 

Payment Difference: This step is required for automatic posting of 

payment differences. 

1 Create Accounts for Clearing Differences: 



Clearing → Clearing Differences → Create Accounts for 

Clearing Differences 

TABLE 4.2 


The following table lists the minimum configuration parameters for the FI-AP 

submodule. 


1 Define Account Groups with Screen Layout (Vendors): 

IMG → Financial Accounting → Accounts Receivable 

and Accounts Payable → Vendor Accounts → Master 

Data → Preparations for Creating Vendor Master 

Data → Define Account Groups with Screen Layout 

(Vendors) 

T-code 

OBD3 

TABLE 4.3 

Continued



2 Create Number Ranges for Vendor Accounts: 




Data → Create Number Ranges for Vendor Accounts 

3 Assign Number Ranges to Vendor Account Groups: 




Data → Assign Number Ranges to Vendor Account 

Groups 

4 Define Tolerances (Vendors): 

IMG → Financial Accounting → Accounts Receivable and 

Accounts Payable → Business Transactions → Outgoing 

Payments → Manual Outgoing Payments → Define 

Tolerances (Vendors) 

T-code 

XKN1 

SPRO 

SPRO 

Payment Difference: The following setting is required for automatic 

posting of payment differences. 

Define Accounts for Payment Differences 

(Manual Outgoing Payment): 



Payments → Manual Outgoing Payments → Overpayment/ 

Underpayment → Define Accounts for Payment Differences 

(Manual Outgoing Payment) 

OBXL 

Automatic Payment Program: The following configurations are required 

to set up automatic payments. 

Set Up All Company Codes for Payment Transactions: 



Payments → Automatic Outgoing Payments → Payment 

Method/Bank Selection for Payment Program → Set Up 

All Company Codes for Payment Transactions 

FBZP 

Continued

4.3 FI-AP 165 


Set Up Paying Company Codes for Payment 

Transactions: 


and Accounts Payable → Business 

Transactions → Outgoing Payments → Automatic 

Outgoing Payments → Payment Method/Bank Selection 

for Payment Program → Set Up Paying Company Codes 

for Payment Transactions 

Set Up Payment Methods per Country for Payment 

Transactions: 



Payments → Automatic Outgoing 

Payments → Payment Method/Bank Selection for 

Payment Program → Set Up Payment Methods per 

Country for Payment Transactions 

Set Up Payment Methods per Company Code for 

Payment Transactions: 



Payments → Automatic Outgoing 

Payments → Payment Method/Bank Selection for 

Payment Program → Set Up Payment Methods per 

Company Code for Payment Transactions 

Set Up Bank Determination for Payment Transactions: 




Method/Bank Selection for Payment Program → Set Up 

Bank Determination for Payment Transactions 

T-code 

FBZP 

FBZP 

FBZP 

FBZP 

TABLE 4.3 

Continued



T-code 

Down Payment Configuration: The following step must be configured to 

define down payments. 

Define Alternative Reconciliation Account for Down 

Payments: 


and Accounts Payable → Business Transactions → Down 

Payment Made → Define Alternative Reconciliation 

Account for Down Payments 

OBYR 

Interest Calculation: The following steps must be followed for interest 

calculation. 

Define Interest Calculation Types: 


Accounts Payable → Business Transactions → Interest 

Calculation → Interest Calculation Global 

Settings → Define Interest Calculation Types 

Define Number Ranges for Interest Forms: 




Settings → Define Number Ranges for Interest Forms 

Prepare Interest on Arrears Calculation: 




Settings → Prepare Interest on Arrears Calculation 

Prepare Item Interest Calculation: 




Settings → Prepare Item Interest Calculation 

SPRO 

SPRO 

SPRO 

SPRO 

Continued

4.3 FI-AP 167 


Prepare Account Balance Interest Calculation: 




Settings → Prepare Account Balance Interest Calculation 

Prepare Special G/L Transaction Interest Calculation: 




Settings → Prepare Special G/L Transaction Interest 

Calculation 

Define Reference Interest Rates: 




Settings → Define Reference Interest Rates 

Define Time-Based Terms: 




Settings → Define Time-Based Terms 

Enter Interest Values: 




Settings → Enter Interest Values 

Interest on Arrears Calculation (Vendors): 



Calculation → Interest Posting → Interest on Arrears 

Calculation (Vendors) 

T-code 

SPRO 

SPRO 

OBAC 

OB81 

OB83 

OBV9 

TABLE 4.3 

Continued



Interest on Account Balance (Vendors): 



Calculation → Interest Posting → A/P: Balance Interest 

Calculation 

T-code 

OBV4 

TABLE 4.3 


The following table lists the minimum configuration parameters for the FI-AR 

submodule. 


Define Account Groups with Screen Layout 

(Customers): 

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) 

Create Number Ranges for Customer Accounts: 


and Accounts Payable → Customer Accounts → 

Master Data → Preparations for Creating Customer 

Master Data → Create Number Ranges for Customer 

Accounts 

T-code 

OBD2 

XDN1 

Continued

4.4 FI-AR 169 


Assign Number Ranges to Customer Account Groups: 


and Accounts Payable → Customer Accounts → Master 

Data → Preparations for Creating Customer Master 

Data → Assign Number Ranges to Customer Account 

Groups 

Define Tolerances (Customers): 


Accounts Payable → Business Transactions → Incoming 

Payments → Manual Incoming Payments → Define 

Tolerances (Customers) 

T-code 

OBAR 

OBA3 

Payment Terms: The following steps may be configured for payment terms 

configuration. 

Maintain Terms of Payment: 


Accounts Payable → Business Transactions → Maintain 

Terms of Payment 

Define Terms of Payment for Installment Payments: 


and Accounts Payable → Business Transactions → Define 

Terms of Payment for Installment Payments 

OBB8 

OBB9 

Payment Difference: The following steps may be configured to handle 

payment differences. 

Define Reason Codes: 



Payments → Incoming Payments Global 

Settings → Overpayment/Underpayment → Define 

Reason Codes 

SPRO 

TABLE 4.4 

Continued



Define Accounts for Payment Differences: 



Payments → Incoming Payments Global 

Settings → Overpayment/Underpayment → Define 

Accounts for Payment Differences 

T-code 

SPRO 

Dunning: The following steps may be configured to send dunning letters to 

customers/vendors. 

Define Dunning Areas: 


Receivable and Accounts Payable → Business 

Transactions → Dunning → Basic Settings for 

Dunning → Define Dunning Areas 

Define Dunning Keys: 




Dunning → Define Dunning Keys 

Define Dunning Block Reasons: 




Dunning → Define Dunning Block Reasons 

Define Dunning Procedures: 



Transactions → Dunning → Dunning Procedure → Define 

Dunning Procedures 

Define Dunning Groupings: 



Transactions → Dunning → Dunning Procedure → Define 

Dunning Groupings 

OB61 

OB17 

OB18 

FBMP 

OBAQ 

TABLE 4.4

4.5 FI-BL 171 

4.5 BANK ACCOUNTING (FI-BL) 


Minimum Configuration: 

Define House Banks: IMG → Financial 

Accounting → Bank Accounting → Bank 

Accounts → Define House Banks 

Define Number Ranges for Checks: 




Media → Check Management → Define Number Ranges 

for Checks 

Define Void Reason Codes: 




Media → Check Management → Define Void Reason 

Codes 

T-code 

FI12 

FCHI 

FCHV 

Lockbox Processing: The following steps may be configured for lockbox 

processing. 

Define Lockboxes for House Banks: 

IMG → Financial Accounting → Bank Accounting → Bank 

Accounts → Define Lockboxes for House Banks 

Create and Assign Business Transactions: 

IMG → Financial Accounting → Bank 

Accounting → Business Transactions → Payment 

Transactions → Manual Bank Statement → Create and 

Assign Business Transactions 

SPRO 

SPRO 

TABLE 4.5 

Continued



T-code 

Processing Bank Statement: The following steps may be configured for 

processing bank statements. 

Define Posting Keys and Posting Rules for Manual Bank 

Statement: 



Transactions → Manual Bank Statement → Define Posting 

Keys and Posting Rules for Manual Bank Statement 

SPRO 

ü Create Account Symbols 

ü Assign Accounts to Account Symbol 

ü Create Keys for Posting Rules 

ü Define Posting Rules 

Define Variants for Manual Bank Statement: 



Transactions → Manual Bank Statement → Define 

Variants for Manual Bank Statement 

Make Global Settings for Electronic Bank Statement: 



Transactions → Electronic Bank Statement → Make 

Global Settings for Electronic Bank Statement 

Define Control Parameters: 



Transactions → Lockbox → Make Global Define Control 

Parameters 

OT43 

SPRO 

OBAY 

Continued

4.5 FI-BL 173 


Define Posting Data: 



Transactions → Lockbox → Define Posting Data 

T-code 

OBAX 

Cash Journal: The following steps may be configured for a cash journal. 

Create G/L Account for Cash Journal: 


Accounting → Business Transactions → Cash 

Journal → Create G/L Account for Cash Journal 

Create G/L Account for Cash Journal: 



Journal → Create G/L Account for Cash Journal 

Define Document Types for Cash Journal Documents: 

IMG → Financial Accounting → Bank Accounting → Business 

Transactions → Cash Journal → Define Document Types for 

Cash Journal Documents 

Define Number Range Intervals for Cash Journal 

Documents: 


Transactions → Cash Journal → Define Number Range 

Intervals for Cash Journal Documents 

Set Up Cash Journal: 


Transactions → Cash Journal → Set Up Cash Journal 

Create, Change, Delete Business Transactions: 



Journal → Create, Change, Delete Business Transactions 

Set Up Print Parameters for Cash Journal: 



Journal → Set Up Print Parameters for Cash Journal 

SPRO 

SPRO 

SPRO 

SPRO 

SPRO 

SPRO 

SPRO 

TABLE 4.5


4.6 ASSETS ACCOUNTING (FI-AA) 

Depending on business requirements, the following steps may be configured 

for assets accounts. 


Minimum Configuration: 

Check Country-specific Settings: 

IMG → Financial Accounting → Assets 

Accounting → Organizational Structures → Check 

Country Specific Settings 

Copy Reference Chart of Dep./Dep. Areas: 


Accounting → Organizational Structures → Copy 

Reference Chart of Dep./Dep. Areas 

Specify Description: 



Reference Chart of Depreciation/Dep. Area 

Copy/Delete Depreciation Areas: 



Reference Chart of Depreciation/Dep. Area 

Assign COD to Co. Code: 


Accounting → Organizational Structures → Chart of 

Depreciation to Co Code 

Define Number Range Interval: 


Accounting → Organizational Structures → Assets 

Class → Define Number Range Interval 

Specify Account Determination: 



Class → Specify Account Determination 

T-code 

OA08 

EC08 

EC08 

OADB 

OAOB 

AS08 

SPRO 

Continued

4.6 FI-AA 175 


Define Assets Class: 



Class → Define Assets Class 

Define How Depreciation Areas Post to General 

Ledger: 


Accounting → Integration with General Ledger → Define 

how depreciation areas post to general ledger 

Assign Input Tax Indicators for Non-taxable 

Acquisitions: 


Accounting → Integration with General Ledger → Assign 

input tax indicators for Non-Taxable Acquisitions 

Specify Fin Stat Version for Assets Reporting: 


Accounting → Integration with General Ledger → Specify 

Fin. Stat. version for assets reporting 

Specify Document Types for Posting Depreciation: 


Accounting → Integration with General Ledger → Post 

depreciation to the general ledger → Specify document types 

for posting of dep. 

Specify Intervals and Posting Rule: 


Accounting → Integration with General Ledger → Post 

depreciation to the general ledger → Specify intervals 

and posting rule 

Determine Depreciation Areas in the Assets Class: 


Accounting → Valuation → Determine Depreciation areas 

in the assets class 

T-code 

OAOA 

OADX 

OBCL 

OAYN 

OA71 

OAYR 

OAYZ 

TABLE 4.6 

Continued



Specify Maximum Amount for Low Value Assets + 

Assets Class: 


Accounting → Valuation → Amount Specification 

(Company Code/Chart of Depreciation) → Specify Max. 

Amount for low value assets + Assets Class 

Specify the rounding of net book value and/or 

depreciation: 


Accounting → Valuation → Amount Specification 

(Company Code/Chart of Depreciation) → Specify the 

rounding of net book value and/or depreciation 

Determine Depreciation Areas: 


Accounting → Depreciation → Ordinary 

Depreciation → Determine Depreciation Areas 

Define Base Method: 


Accounting → Depreciation → Valuation 

Method → Depreciation Key → Calculation 

Method → Define Base Methods 

Define Decline Balance Method: 




Method → Define Decline Balance Method 

Maintain Period Control: 




Method → Maintain Period Control Methods 

Main Depreciation Key: 



Method → Depreciation Key → Maintain Depreciation Key 

T-code 

OAY2 

OAYO 

OABN 

SPRO 

SPRO 

AFAMA 

TABLE 4.6

4.8 CO-CCA 177 

4.7 CONTROLLING AREA (CO) 

Configuration of the following steps are required for general controlling area 

setup. 


Maintaining the CO Area: 

IMG → Controlling → General Controlling → 

Organization → Maintain Controlling Area → Maintain 

Controlling Area (Selection Menu) 

Maintaining Versions: 

IMG → Controlling → General 

Controlling → Organization → Maintain Versions 

Maintain Number Ranges for CO Documents: 

IMG → Controlling → General 

Controlling → Organization → Maintain Number Ranges 

for Controlling Documents 

T-code 

OKKP 

OKEQ 

KANK 

TABLE 4.7 

4.8 COST CENTER ACCOUNTING (CO-CCA) 

The following steps are required for cost center accounting. 


Cost Center Categories: 

IMG → Controlling → Cost Center Accounting → Master 

Data → Cost Centers → Define Cost Center Categories 

T-code 

OKA2 

TABLE 4.8 

Continued



T-code 

Plan Accrual Calculation: 

Plan Cost Accrual Calculation: 

IMG → Controlling → Cost Center 

Accounting → Planning → Planning Aids → Accrual 

Calculation → Percentage Method → Maintain Overhead 

Structure 

KSAZ 

Plan Distribution: 

Planning Cost Distribution: 

IMG → Controlling → Cost Center Accounting → 

Planning → Allocations → Distribution → Define Distribution 

KSV7 (KSV8) 

Plan Reposting: 

Planning Periodic Reposting: 


Planning → Planning Aids → Periodic Reposting → Define 

Periodic Reposting 

KSW7 (KSW8) 

Plan Assessment: 

Planning Cost Assessment: 


Planning → Allocations → Assessment → Define Assessment 

KSU7 (KSU8) 

Actual Reposting: 

Actual Period Reposting: 

IMG → Controlling → Cost Center Accounting → Actual 

Postings → Period-End Closing → Periodic 

Reposting → Define Periodic Reposting 

KSW1 

Actual Accruals: 

Cost Accrual Calculation (Percentage Method): 


Postings → Period-End Closing → Accrual Calculation → 

Percentage Method → Maintain Overhead Structure 

KSAZ 

Continued

4.9 CO-IO 179 


T-code 

Actual Distribution: 

Actual Cost Distribution: 


Postings → Period-End Closing → Distribution → Define 

Distribution 

KSV1 (KSV2) 

Actual Assessment: 

Actual Cost Assessment: 

IMG → Controlling → Cost Center 

Accounting → Actual Postings → Period-End 

Closing → Assessment → Maintain Assessment 

KSU1 (KSU2) 

TABLE 4.8 

4.9 INTERNAL ORDER (CO-IO) 

Internal order (IO) is a cost object that tracks the cost of a specific event. IO has 

a short life compared to a cost center. In SAP solutions, you will find two types 

of IO: (1) real IO and (2) statistical IO. Through real IO, you can track the cost 

of a particular event, and at the end you can settle the IO cost to the respective 

cost center. In statistical IO, you can only collect cost; you can’t settle statistical 

IO to any other cost object. 


Activate Order Management in CO Area: 

IMG → Controlling → Internal Orders → Activate 

Order Management in Controlling Area 

Order Types: 

IMG → Controlling → Internal Orders → Order 

Master Data → Define Order Types 

T-code 

OKKP 

KOT2_FUNCAREA 

TABLE 4.9 

Continued



Number Ranges for Order Types: 

IMG → Controlling → Internal Orders → Order 

Master Data → Maintain Number Ranges for Orders 

Maintain Settlement Cost Elements: 

IMG → Controlling → Internal Orders → Actual 

Posting → Settlement → Maintain settlement cost element 

Maintain Allocation Structures: 


Posting → Settlement → Maintain Allocation Structures 

Maintain Settlement Profile: 


Posting → Settlement → Maintain Settlement Profile 

Assignment of Settlement Profile to Order Type: 


Posting → Settlement → Maintain Settlement Profile 

Number Ranges for CO Settlement Documents: 


Postings → Settlement → Maintain Number Ranges for 

Settlement Documents 

Maintain Budget Profile: 

IMG → Controlling → Internal Orders → Budgeting 

and Availability Control → Maintain Budget Profile 

Maintain budget profile in order types: 


and Availability Control → Maintain Budget Profile 

Define Tolerance Limits for Availability Control: 


and Availability Control → Define Tolerance Limits 

for Availability Control 

Maintain Budget Manage: 


and Availability Control → Maintain Budget Manager 

Maintain Number Ranges for Budgeting: 

IMG → Controlling → Internal Orders → Budgeting and 

Availability Control → Maintain Number Ranges for Budgeting 

T-code 

KONK 

KA01/KA06 

SPRO 

SPRO 

SPRO 

SNUM 

OKOB 

OKOB 

SPRO 

OK14 

OK11 

TABLE 4.9

4.10 CO-PCA 181 

4.10 PROFIT CENTER ACCOUNTING (CO-PCA) 

The following steps may be configured for profit center accounting. 


Maintain CO Area: 

IMG → Controlling → General Controlling → 

Organization → Maintain Controlling Area 

Maintain Controlling Area Settings: 

IMG → Controlling → Profit Center Accounting → Basic 

Settings → Controlling Area Settings → Maintain 

Controlling Area Settings 

Create Dummy Profit Center: 

IMG → Controlling → Profit Center Accounting → Master 

Data → Profit Center → Create Dummy Profit Center 

Set Control Parameters for Actual Data: 

IMG → Controlling → Profit Center Accounting → Basic 

Settings → Controlling Area Settings → Activate Direct 

Postings → Set Control Parameters for Actual Data 

Maintain Standard Hierarchy: 


Data → Profit Center → Maintain Standard Hierarchy 

Maintain Profit Center Groups: 


Data → Profit Center → Maintain Standard Hierarchy 

Create Profit Centers: 


Data → Profit Center → Maintain Profit Center 

Activate Inactive Profit Center: 


Data → Profit Center → Activate Inactive Profit Center 

Edit Automatic Account Assignments: 

IMG → Controlling → Profit Center Accounting → Actual 

Posting → Actual Postings → Maintain Automatic 

Account Assignment of Revenue Elements 

T-code 

OKKP 

0KE5 

KE59 

1KEF 

KCH4 

KCH1 

KE51 

KEOA2 

OKB9 

TABLE 4.10


4.11 PROFITABILITY ANALYSIS (CO-PA) 

The following steps may be configured for profitability analysis. 


Maintain Characteristics: 

IMG → Controlling → Profitability 

Analysis → Structures → Maintain Operating 

Concern → Maintain Characteristics 

Maintain Value Fields: 


Analysis → Structures → Maintain Operating 

Concern → Maintain Value Fields 

Maintain Operating Concern: 


Analysis → Structures → Define Operating 

Concern → Maintain Operating Concern 

Set Operating Concern: 


Analysis → Structures → Set Operating Concern 

Assign CO Area to Operating Concern: 


Analysis → Structures → Assign Controlling Area to 

Operating Concern 

Maintain Characteristic Values: 

IMG → Controlling → Profitability Analysis → Master 

Data → Characteristic Values → Maintain Characteristic 

Values 

Define Characteristic Derivation: 

IMG → Controlling → Profitability Analysis → Master 

Data → Define Characteristic Derivation 

Define PA Transfer Structure for Settlement: 

IMG → Controlling → Profitability Analysis → 

Planning → Integrated Planning → Transfer Cost Center 

Planning/Process Planning → Assess Cost Center 

Costs/Process Costs → Define PA Transfer Structure 

for Assessment 

T-code 

KEA5 

KEA6 

KEA0 

KEBD 

SPRO 

KES1 

KEDR 

KEI1 

Continued

4.12 CO-PC 183 


Assign PA Transfer Structure to Settlement Profile: 

IMG → Controlling → Profitability Analysis → Flows 

of Actual Values → Settlement of Production 

Variances → Assign PA Transfer Structure to Settlement 

Profile 

Create Profitability Report: 


Analysis → Information System → Create 

Profitability Report 

T-code 

SPRO 

KE31 

TABLE 4.11 


The following steps may be configured for product costing. 


Maintain Overhead Cost Elements: 

IMG → Controlling → Product Cost 

Controlling → Product Cost Planning → Basic Settings 

for Material Costing → Overhead → Maintain Overhead 

Cost Elements 

Define Calculation Bases: 



for Material Costing → Overhead → Costing Sheet: 

Components → Define Calculation Bases 

Define Percentage Overhead Rates: 




Components → Define Percentage Overhead Rates 

T-code 

KA06 

TABLE 4.12 

Continued



Define Quantity-based Overhead Rates: 




Components → Define Quantity-Based Overhead Rates 

Define Credits: 




Components → Define Credits 

Define Origin Groups: 



for Material Costing → Define Origin Groups 

Define Costing Sheets: 

IMG → Controlling → Product 

Cost Controlling → Product Cost 

Planning → Overhead → Define Costing Sheets 

Define Overhead Keys: 



Planning → Overhead → Define Overhead Keys 

Define Overhead Groups: 



Planning → Overhead → Define Overhead Groups 

Define Cost Component Structure: 


Controlling → Product Cost Planning → Basic Settings for 

Material Costing → Define Cost Component Structure 

T-code 

OKZ1 

Continued

4.12 CO-PC 185 


T-code 

Define Costing Type: 


Controlling → Product Cost Planning → Material Cost 

Estimate with Quantity Structure → Costing Variant: 

Components → Define Costing Types 

Define Valuation Variant: 




Components → Define Costing Variant 

Define Date Control: 




Components → Define Date Control 

Define Quantity Structure Control: 




Components → Define Quantity Structure Control 

Define Transfer Strategy: 




Components → Define Transfer Strategy 

Define Costing Variants: 

IMG → Controlling → Product Cost Controlling → Product 

Cost Planning → Material Cost Estimate with Quantity 

Structure → Define Costing Variants 

TABLE 4.12

Chapter 5 

USER TRANSACTION 

CODES 

In this chapter, you will find frequently used transaction codes from the user’s 

perspective. Unless specifically mentioned, you will find these transaction codes in 

the SAP Easy Access menu. Sometimes you will find user transaction codes in the 

IMG menu; these are provided for the convenience of consultants. For a complete 

list of transaction codes, refer to the CD-ROM distributed with this book. 


The main activities in the G/L submodules involve: (1) maintenance of G/L 

master data, (2) business transactions, (3) period-end transactions, and (4) 

information systems. For your reference, some of the important transaction 

codes for General Ledger Accounting are provided in Table 5.1. 

Create G/L 

Master 


Create G/L Master: 

SAP menu → Accounting → Financial 

Accounting → General Ledger → Master Records → G/L 

Accounts → Individual Processing → Centrally 

In Chart of Accounts (COA): 

SAP menu → Accounting → Financial Accounting → 

General Ledger → Master Records → G/L Accounts → 

Individual Processing → In Chart of Accounts 

Create Company Code: 



Individual Processing → In Company Code 

T-code 

FS00 

FSP0 

FSS0 

TABLE 5.1 

Continued 

187

188 CHAPTER 5 USER TRANSACTION CODES 

Display 

Changes to 

G/L Master 

Sample 

Account 


Display Changes Centrally: 


Accounting → General Ledger → Master Records → G/L 

Accounts → Display Changes → Centrally 

Display Changes In COA: 



Display Changes → In Chart of Accounts 

Display Changes In Company Code: 



Individual Processing → In Company Code 

Creation of Sample Account: 



Sample Account → Create 

Change of Sample Account: 



Sample Account → Change 

Display of Sample Account: 



Sample Account → Display 

Display Changes of Sample Account: 



Sample Account → Display Changes 

Delete of Sample Account: 



Sample Account → Delete 

T-code 

FS04 

FSP4 

FSS4 

FSM1 

FSM2 

FSM3 

FSM4 

FSM5 

Continued


Posting to G/L 

Accounts 

Posting with 

Reference 

Document 


GL Posting: 


General Ledger → Posting → Enter G/L Account Document 

General Posting: 


General Ledger → Posting → General Posting 

Edit or Park G/L Document: 


General Ledger → Posting → Edit or Park G/L Document 

General Document Parking: 


General Ledger → Posting → General Document Parking 

Post with Clearing: 


General Ledger → Posting → Post with Clearing 

Incoming Payments: 


General Ledger → Posting → Incoming Payments 

Outgoing Payments: 


General Ledger → Posting → Outgoing Payments 

Cash Journal Posting: 


General Ledger → Posting → Cash Journal Posting 

Clear G/L Open Line Items: 


General Ledger → Account → Clear 

Account Assignment Model: 


General Ledger → Posting → Reference Documents → 

Account Assignment Model 

T-code 

FB50 

F-02 

FV50 

F-65 

F-04 

F-06 

F-07 

FBCJ 

F-03 

FKMT 

TABLE 5.1 

Continued


G/L Document 

Cross- 

Company 

Posting 


Recurring Document: 



Recurring Document 

Sample Document: 



Sample Document 

Display Document Change: 


General Ledger → Document → Change 

Change Line Items: 


General Ledger → Document → Change Line Items 

Display Document: 


General Ledger → Document → Display 

Display Changes in Document: 


General Ledger → Document → Display Changes 

Reset Cleared Items: 


General Ledger → Document → Reset Cleared Items 

Individual Reversal: 


General Ledger → Document → Reverse → Individual 

Reversal 

Mass Reversal: 


General Ledger → Document → Reverse → Mass Reversal 

Change Document: 


General Ledger → Document → Cross-CC Transaction → 

Change 

T-code 

FBD1 

F-01 

FB02 

FB09 

FB03 

FB04 

FBRA 

FB08 

F.80 

FBU2 

Continued


Display G/L 

Periodic 

Processing 





Display 

Reverse Document: 



Reverse 

Display Balances: 


General Ledger → Account → Cross-CC Transaction → 

Display Balances 

Display/Change Line Items: 


General Ledger → Account → Cross-CC Transaction → 

Display/Change Line Items 

Account Balance Interest Calculation: 


General Ledger → Periodic Processing → Interest 

Calculation → Account Balance Interest Calculation 

Without Specification of Clearing Currency: 


General Ledger → Periodic Processing → Automatic 

Clearing → Without Specification of Clearing Currency 

With Clearing Currency Specified: 


General Ledger → Periodic Processing → Automatic 

Clearing → F13E – With Clearing Currency Specified 

Posting Recurring Entries: 


General Ledger → Periodic Processing → Recurring 

Entries → F.14 – Execute 

T-code 

FBU3 

FBU8 

FS10N 

FBL3N 

F.52 

F.13 

F13E 

F.14 

TABLE 5.1 

Continued



Lists Recurring Entries: 


General Ledger → Periodic Processing → Recurring 

Entries → F.15 – Lists 

Valuate Foreign Currency: 

SAP menu → Accounting → Financial Accounting → General 

Ledger → Posting → Valuate Foreign Currency 

Enter Accrual/Deferral Document: 


Ledger → Periodic Processing → Closing → Valuate → Enter 

Accrual/Deferral Doc. 

Reverse Accrual/Deferral Document: 


Ledger → Periodic Processing → Closing → Valuate → 

Reverse Accrual/Deferral Document 

T-code 

F.15 

F-05 

FBS1 

F.81 

TABLE 5.1 

5.2 ACCOUNTS PAYABLE (AP) 

The main activities in the AP ledger submodules involve: (1) maintenance of 

AP master data, (2) business transactions, (3) period-end transactions, and (4) 

information systems. For your reference, some of the important transaction 

codes for accounts payable are listed in Table 5.2. 

Maintain 

Vendor Master 


Create Vendor Master: 


Accounts Payable → Master Records → Create 

Or 


Accounts Payable → Master Records → Maintain 

centrally → Create 

T-code 

FK01 

XK01 

Continued

5.2 AP 193 


Change Vendor Master: 


Accounts Payable → Master records → Change 

Or 


Accounts Payable → Master records → Maintain 

centrally → Create 

Display Vendor Master: 


Accounts Payable → Master records → Display 

Or 



centrally → Display 

Block/Unblock Vendor Master: 


Accounting → Accounts Payable → Master records → Set 

Deletion Indicator 

Or 



centrally → Set Deletion Indicator 

Display Vendor Master Changes: 


Accounts Payable → Master records → Display changes 

Or 



centrally → Display changes 

Vendor Master Change Confirmation: 


Accounting → Accounts Payable → Master 

records → Confirmation of change → Single 

T-code 

FK02 

XK02 

FK03 

XK03 

FK06 

XK06 

FK04 

XK04 

FK08 

TABLE 5.2 

Continued



Vendor Master Change Confirmation: 


Accounting → Accounts Payable → Master 

records → Confirmation of change → List 

Enhancing Vendor Master to Another Co. Code: 


Accounts Payable → Master records → Compare → 

Company codes → Send 

Enhancing Vendor Master to Another Co. Code: 


Accounts Payable → Master records → Compare → 

Company codes → Receive 

T-code 

FK09 

FK15 

FK16 

Vendor Document: 

Business 

Transaction 

with Vendor 

Invoice Posting (Enjoy Tran. code): 

SAP R/3 System → Accounting → Financial Accounting → 

Accounts Payable → Document entry → Invoice 

Invoice Posting: 

SAP R/3 System → Accounting → Financial 

Accounting → Accounts Payable → Document 

entry → Invoice – general 

Credit Memo Posting: 



entry → Credit memo 

Credit Memo Posting: 



entry → Credit memo – general 

FB60 

F-43 

FB65 

F-41 

Document Parking: 

Park/Edit Invoice: 



entry → Document Parking → Park/edit invoice 

FV60 

Continued

5.2 AP 195 


Invoice Parking—General: 



entry → Document Parking → Invoice parking – general 

Park/Edit Credit Memo: 



entry → Document Parking → Park/edit credit memo 

Credit Memo Parking—General: 



entry → Document Parking → Credit memo 

parking – general 

T-code 

F-63 

FV65 

F-66 

Down Payment: 

Request: 


Accounting → Accounts Payable → Document entry → 

Down payment → Request 

Down Payment: 


Accounting → Accounts Payable → Document entry → 

Down payment → Down payment 

Clearing: 



entry → Down payment → Clearing 

F-47 

F-48 

F-54 

Outgoing Payment: 

Post Outgoing Payment: 



entry → Outgoing payment → Post 

F-53 

TABLE 5.2 

Continued



Post + print forms: 



entry → Outgoing payment → Post + print forms 

Payment Request: 



entry → Outgoing payment → Payment request 

Automatic Payment Programs: 


Accounting → Accounts Payable → Periodic Processing → 

F-110 – Payments 

T-code 

F-58 

F-59 

F110 

Document Management: 

Change a Document: 


Accounting → Accounts Payable → Document → 

Change 

Change Line Items: 


Accounting → Accounts Payable → Document → Change 

line items 



Accounting → Accounts Payable → Document → Display 

Display Changes: 


Accounting → Accounts Payable → Document → Display 

changes 

Reset Cleared Items: 


Accounting → Accounts Payable → Document → Reset 

cleared items 

FB02 

FB09 

FB03 

FB04 

FBRA 

Continued

5.2 AP 197 

Period-end 

Transactions 

Information 

Systems 


Interest Balance: 


Accounting → Accounts Payable → Periodic 

processing → Interest calculation → Balance 

Dunning Run: 



processing → Dunning 

Execute Recurring Entries: 



processing → Recurring entries → Execute 

Open Items in Foreign Currency: 



processing → Closing → Valuate → Open items in 

foreign currency 

Regrouping Receivables/Payables: 



processing → Closing → Regroup → Receivables/payables 

AP Balance Carry Forward: 



processing → Closing → Carry forward → Balance 

Carry forward 

Transaction Figures: Account Balance: 


Accounting → Accounts Payable → Information 

system → Reports for Accounts Payable 

Accounting → Vendor Balances → Transaction Figures: 

Account Balance 

T-code 

F.44 

F150 

F.14 

F.05 

F101 

F.07 

S_ALR_87012079 

TABLE 5.2 

Continued



Due Date Analysis for Open Items: 




Accounting → Vendors: Item → Due Date Analysis 

for Open Items 

List of Vendor Line Items: 


Accounts Payable → Information system → Reports for 

Accounts Payable Accounting → Vendors: Item → List of 

Vendor Line Items 

Payment List: 




Accounting → Payment Transactions → Payment List 

Check Register: 




Accounting → Payment Transactions → Check Register 

Cashed Checks: 




Accounting → Payment Transactions → Cashed Checks 

Number Ranges for Checks: 




Accounting → Payment Transactions → Number Ranges 

for Checks 

T-code 

S_ALR_87012078 

S_ALR_87012103 

S_P99_41000099 

S_P99_41000101 

S_ALR_87012119 

S_P99_41000102 

TABLE 5.2

5.3 AR 199 

5.3 ACCOUNTS RECEIVABLE (AR) 

The main activities in the AR submodules involve: (1) maintenance of 

customer master data, (2) business transactions with customers, (3) periodend 

transactions, and (4) information systems. For your reference, some of the 

important transaction codes for AR are listed in Table 5.3. 

Maintenance 

of Customer 

Master Data 


Create Customer Master: 


Accounting → Accounts Receivable → Master 

records → Create 

Or 



records → Maintain centrally → Create 

Change Customer Master: 



records → Change 

Or 



records → Maintain centrally → Change 

Display Customer Master: 



records → Display 

Or 

T-code 

FD01 

XD01 

FD02 

XD02 

FD03 

TABLE 5.3 

Continued





records → Maintain centrally → Display 

Block/Unblock Customer Master: 



records → Block/unblock 

Or 



records → Maintain centrally → Block/unblock 

Set Deletion Indicator in Customer Master: 



records → Set Deletion Indicator 

Or 



records → Maintain centrally → Set Deletion Indicator 

Confirmation of Change in Customer Master—Single: 



records → Confirmation of change → Single 

Confirmation of Change in Customer Master—Single List: 



records → Confirmation of change → List 

Display Changes in Customer Master: 



records → Display changes 

Or 

T-code 

XD03 

FD05 

XD05 

FD06 

XD06 

FD08 

FD09 

FD04 

Continued

5.3 AR 201 




records → Maintain centrally → Display changes 

T-code 

XD04 

Document Posting: 

Business 

Transactions 

with 

Customers 

Posting Customer Invoice: 


Accounting → Accounts Receivable → Document 

entry → Invoice 

Posting Customer Invoice—General: 



entry → Invoice – general 

Posting Credit Memo: 



entry → Credit memo 

Posting Credit Memo—General: 



entry → Credit memo – general 

Posting Incoming Payment: 



entry → Incoming payment 

FB70 

F-22 

FB75 

F-27 

F-28 

Document Parking: 

Park/Edit Invoice: 



entry → Document Parking → Park/edit invoice 

Invoice Parking—General: 


Accounting → Accounts Receivable → Document entry → 

Document Parking → Invoice parking – general 

FV70 

F-64 

TABLE 5.3 

Continued



Park/Edit Credit Memo: 



entry → Document Parking → Park/edit credit memo 

Credit Memo Parking—General: 



Document Parking → Credit memo parking – general 

T-code 

FV75 

F-67 

Down Payment: 

Down Payment Request: 



Down payment → Request 

Down Payment: 



Down payment → Down payment 

Down Payment Clearing: 



Down payment → Clearing 

F-37 

F-29 

F-39 

Reference Documents: 

Recurring Entry Document: 



Reference documents → Recurring Entry Document 

Account Assignment Model: 


Accounts Receivable → Document entry → Reference 

documents → Account assignment model 

FBD1 

FKMT 

Continued

5.3 AR 203 

Period-end 

Transactions 


Sample Document: 



entry → Reference documents → Sample document 

Running Dunning: 


Accounting → Accounts Receivable → Periodic 

processing → Dunning 

Running Balance Interest Calculation: 



processing → Interest calculation → Balance interest 

Recurring Entry Posting: 



processing → Recurring entries → Execute 

Open Items in Foreign Currency: 



processing → Closing → Valuate → Open items in foreign 

currency 

Reserve for Bad Debt (Gross): 



processing → Closing → Valuate → Reserve for 

bad debt (gross) 

Regrouping Receivables/Payables: 



processing → Closing → Regroup → Receivables/payables 

T-code 

F-01 

F150 

F.26 

F.14 

F.05 

F104 

F101 

TABLE 5.3 

Continued


Information 

Systems 


Balance Carry Forward Account Receivable: 



processing → Closing → Carry forward → Balance Carry 

forward 

Customer Balances in Local Currency: 


Accounting → Accounts Receivable → Information 

system → Reports for Accounts Receivable 

Accounting → Customer Balances → Customer Balances 

in Local Currency 

Due Date Analysis for Open Items: 




Accounting → Customers: Items → Due Date 

Analysis for Open Items 

List of Customer Line Items: 




Accounting → Customers: Items → List of Customer 

Line Items 

Customer Open Item Analysis by Balance of 

Overdue Items: 




Accounting → Customers: Items → Customer Open Item 

Analysis by Balance of Overdue Items 

T-code 

F.07 

S_ALR_87012172 

S_ALR_87012168 

S_ALR_87012197 

S_ALR_87012178 

TABLE 5.3

5.4 AM 205 

5.4 ASSETS MANAGEMENT (AM) 

The main activities in the assets accounting submodules involve: (1) maintenance 

of AA master data, (2) business transactions, (3) period-end transactions, and 

(4) information systems. For your reference, some of the important transaction 

codes for Assets Management are provided in Table 5.4. 

Assets Master 

Maintenance 


Create Assets Master: 

SAP R/3 System → Accounting → Fixed Assets → 

Asset → Create → Asset 

Create Group Assets Master: 


Asset → Create → Group Asset 

Create Sub Assets Master: 


Asset → Create → Sub-Number → Asset 

Create Group Sub Assets Master: 

SAP R/3 System → Accounting → Fixed Assets → Asset → 

Create → Sub-Number → Group Asset 

Change Assets Master: 


Change → Asset 

Change Group Assets Master: 


Change → Group Asset 

Display Assets Master: 


Asset → Display → Asset 

Display Group Assets Master: 


Asset → Display → Group Asset 

T-code 

AS01 

AS21 

AS11 

AS24 

AS02 

AS22 

AS03 

AS23 

TABLE 5.4 

Continued


Assets 

Acquisition 


Lock Assets Master: 


Asset → Lock → Asset 

Lock Group Assets Master: 


Asset → Lock → Group Asset 

Delete Assets Master: 


Asset → Delete → Asset 

Delete Group Assets Master: 


Asset → Delete → Group Asset 

External Acquisition: 


Posting → Acquisition → External Acquisition → 

With Vendor 

Acquisition with Automatic Offsetting Entry: 


Posting → Acquisition → External 

Acquisition → Acquis. w/Autom. Offsetting Entry 

Clearing Offsetting Entry: 


Posting → Acquisition → External Acquisition → Clearing 

Offsetting Entry 

From Affiliated Company: 


Asset → Posting → Acquisition → External 

Acquisition → From Affiliated Company 

Credit Memo for Current Year Invoice Year: 


Asset → Posting → Acquisition → Credit 

Memo → ABGL – ... in Invoice Year 

T-code 

AS05 

AS25 

AS06 

AS26 

F-90 

ABZON 

F-91 

ABZP 

ABGL 

Continued

5.4 AM 207 

Assets 

Retirement/ 

Transfer 


Credit Memo for Previous Year Invoice Year: 


Asset → Posting → Acquisition → Credit Memo → 

ABGF – ... in Next Year 

In-House Production: 


Asset → Posting → Acquisition → ABZE – In-House 

Production 

Capitalization of AUC via Distribute: 


Asset → Posting → Capitalize Asset u. Const. → 

AIAB – Distribute 

Capitalization of AUC via Settle: 


Asset → Posting → Capitalize Asset u. Const. → 

AIBU – Settle 

Transfer within Company Code: 


Posting → Transfer → Transfer within Company Code 

Intercompany Asset Transfer: 


Posting → Transfer → Intercompany Asset Transfer 

Retirement with Customer: 


Posting → Retirement → Retirement w/Revenue → With 

Customer 

Asset Sale without Customer: 


Posting → Retirement → Retirement w/Revenue → Asset 

Sale Without Customer 

Asset Retirement by Scrapping: 


Posting → Retirement → Asset Retirement by Scrapping 

T-code 

ABGF 

ABZE 

AIAB 

AIBU 

ABUMN 

ABT1N 

F-92 

ABAON 

ABAVN 

TABLE 5.4 

Continued


Period-end 

Transactions 

Information 

Systems 


Subsequent Revenue: 


Posting → Retirement → Subsequent Revenue 

Subsequent Costs: 


Posting → Retirement → Subsequent Costs 

Execute Depreciation Run: 

SAP R/3 System → Accounting → Fixed Assets → Periodic 

Processing → Depreciation Run → Asset Explorer 

Fiscal Year Change: 


Processing → Fiscal Year Change 

Execute: 


Processing → Year-End Closing → Execute 

Asset Explorer: 

SAP R/3 System → Accounting → Fixed Assets → Reports 

on Asset Accounting → Individual Asset → 

AW01N – Asset Explorer 

... by Asset Number: 


on Asset Accounting → Asset Balances → Balance 

Lists → Asset Balances → by Asset Number 

... by Asset Class: 


on Asset Accounting → Asset Balances → Balance 

Lists → Asset Balances → by Asset Class 

Leasing: 


on Asset Accounting → Asset Balances → Leased 

Assets → Leasing 

T-code 

ABNE 

ABNK 

AFAB 

AJRW 

AJAB 

AW01N 

S_ALR_87011963 

S_ALR_87011964 

S_ALR_87010139 

Continued

5.5 CO-CEL 209 


Liabilities from Leasing Agreements: 


on Asset Accounting → Asset Balances → Leased 

Assets → Liabilities from Leasing Agreements 

T-code 

S_ALR_87010141 

TABLE 5.4 

5.5 COST ELEMENT ACCOUNTING (CO-CEL) 

The main activities in the CO-CEL submodules involve: (1) maintenance of cost 

element master data and (2) information systems. For your reference, some of the 

important transaction codes for Cost Element Accounting are listed in Table 5.5. 

Master 

Maintenance 


Create Primary Cost Element: 

SAP R/3 System → Accounting → Controlling → Cost 

Element Accounting → Master Data → Cost 

Element → Individual Processing → Create Primary 

Create Secondary Cost Element: 



Element → Individual Processing → Create Secondary 

Change Cost Element Master Data: 



Element → Individual Processing → Change 

Display Cost Element Master Data: 



Element → Individual Processing → Display 

T-code 

KA01 

KA06 

KA02 

KA03 

TABLE 5.5 

Continued


Information 

Systems 


Delete Cost Element Master Data: 


Element Accounting → Master Data → Cost Element → 

Individual Processing → Delete 

Display Changes in Cost Element Master Data: 


Element Accounting → Master Data → Cost Element → 

Individual Processing → Display Changes 

Create Cost Element Group: 


Element Accounting → Master Data → Cost Element 

Group → Create 

Change Cost Element Group: 



Group → Change 

Display Cost Element Group: 



Group → Display 

CO/FI Reconciliation in CoCd Currency: 


Element Accounting → Information System → Reports 

for Cost and Revenue Element Accounting → 

Reconciliation → – CO/FI Reconciliation in CoCd 

Currency 

Overview of Cost Flows: 



for Cost and Revenue Element Accounting → Cost 

Flow → – Overview of Cost Flows 

Reconciliation Ledger: 



for Cost and Revenue Element Accounting → 

Reconciliation → – Reconciliation Ledger: CO Line Items 

T-code 

KA04 

KA05 

KAH1 

KAH2 

KAH3 

S_ALR_87013603 

KAL7 

KALR 

Continued

5.6 CO-CCA 211 


Cost Element Master Data Reports: 



for Cost and Revenue Element Accounting → Master 

Data Indexes → – Cost Elements: Master Data Report 

T-code 

KA23 

TABLE 5.5 


The main activities in the CO-CCA submodules involve: (1) maintenance of 

cost center master data, (2) CO internal posting, (3) period-end processing, and 


codes for Cost center accounting are provided in Table 5.6. 

Master 

Maintenance 


Create Cost Center Master: 


Center Accounting → Master Data → Cost 

Center → Individual Processing → KS01 – Create 

Change Cost Center Master: 


Center Accounting → Master Data → Cost Center → 

Individual Processing → Change 

Display Cost Center Master: 



Individual Processing → Display 

T-code 

KS01 

KS02 

KS03 

TABLE 5.6 

Continued



Delete Cost Center Master: 



Individual Processing → Delete 

Display Changes to Cost Center Master: 


Center Accounting → Master Data → Cost 

Center → Individual Processing → Display Changes 

Create Cost Center Group: 


Center Accounting → Master Data → Cost Center → Cost 

Center Group → Create 

Change Cost Center Group: 



Center Group → Change 

Display Cost Center Group: 



Center Group → Display 

Create Activity Type: 


Center Accounting → Master Data → Activity 

Type → Individual Processing → Create 

Change Activity Type: 



Type → Individual Processing → Change 

Display Activity Type: 



Type → Individual Processing → Display 

T-code 

KS04 

KS05 

KSH1 

KSH2 

KSH3 

KL01 

KL02 

KL03 

Continued

5.6 CO-CCA 213 


Delete Activity Type: 



Type → Individual Processing → Delete 

Create Activity Group: 



Type → Activity Type Group → KLH1 – Create 

Change Activity Group: 



Type → Activity Type Group → KLH2 – Change 

Display Activity Group: 



Type → Activity Type Group → KLH3 – Display 

Create Statistical Key Figure: 


Center Accounting → Master Data → Statistical Key 

Figures → Individual Processing → Create 

Change Statistical Key Figure: 



Figures → Individual Processing → Change 

Display Statistical Key Figure: 



Figures → Individual Processing → Display 

Delete Statistical Key Figure: 



Figures → Individual Processing → Delete 

T-code 

KL04 

KLH1 

KLH2 

KLH3 

KK01 

KK02 

KK03 

KK03DEL 

TABLE 5.6 

Continued


Transactions 


Create Statistical Key Figure Group: 



Figures → Statistical Key Figure Group → Create 

Change Statistical Key Figure Group: 



Figures → Statistical Key Figure Group → Change 

Display Statistical Key Figure Group: 



Figures → Statistical Key Figure Group → Display 

Manual Reposting of Costs: 


Center Accounting → Actual Postings → Manual 

Reposting of Costs → Enter 

Display Manual Reposting of Costs: 



Reposting of Costs → Display 

Reverse Manual Reposting of Costs: 



Reposting of Costs → Reverse 

Manual Reposting of Revenues: 



Reposting of Revenues → Reverse 

Display Manual Reposting of Revenues: 



Reposting of Revenues → Display 

T-code 

KBH1 

KBH2 

KBH3 

KB11N 

KB13N 

KB14N 

KB41N 

KB43N 

Continued

5.6 CO-CCA 215 


Reverse Manual Reposting of Revenues: 



Reposting of Revenues → Reverse 

Reposting of Line Items: 


Center Accounting → Actual Postings → Repost Line 

Items → Enter 

Display Reposting of Line Items: 



Items → Display 

Reverse Reposting of Line Items: 



Items → Reverse 

Enter Activity Allocation: 


Center Accounting → Actual Postings → Activity 

Allocation → Enter 

Display Activity Allocation: 



Allocation → Display 

Reverse Activity Allocation: 



Allocation → Reverse 

Enter Manual Cost Allocation: 


Center Accounting → Actual Postings → Manual Cost 

Allocation → Enter 

T-code 

KB44N 

KB61 

KB63 

KB64 

KB21N 

KB23N 

KB24N 

KB15N 

TABLE 5.6 

Continued



Display Manual Cost Allocation: 



Allocation → Display 

Reverse Manual Cost Allocation: 



Allocation → Reverse 

Enter Statistical Key Figures: 


Center Accounting → Actual Postings → Statistical Key 

Figures → Enter 

Display Statistical Key Figures: 



Figures → Display 

Reverse Statistical Key Figures: 



Figures → Reverse 

Periodic Reposting: 


Center Accounting → Period-End Closing → Single 

Functions → Periodic Reposting 

Accrual Calculation: 



Functions → Accrual Calculation 

Distribution: 



Functions → Allocations → Distribution 

T-code 

KB16N 

KB17N 

KB31N 

KB33N 

KB34N 

KSW5 

KSA3 

KSV5 

Continued

5.7 CO-IO 217 

Information 

Systems 


Assessment: 



Functions → Allocations → Assessment 

Range: Cost Centers: 


Center Accounting → Information System → Reports 

for Cost Center Accounting → Plan/Actual 

Comparisons → Cost Centers: Actual/Plan/Variance 

Range: Cost Elements: 



for Cost Center Accounting → Plan/Actual 

Comparisons → Range: Cost Elements 

Cost Centers: Actual Line Items: 


Center Accounting → Information System → Reports for 

Cost Center Accounting → Line items → Cost Centers: 

Actual Line Items 

Cost Center Master Data: 



Cost Center Accounting → Line items → Cost Centers: 

Actual Line Items → Cost Centers: Master Data Report 

T-code 

KSU5 

S_ALR_87013612 

S_ALR_87013613 

KSB1 

KS13 

TABLE 5.6 

5.7 INTERNAL ORDER (CO-IO) 

The main activities in the CO-IO sub-modules involve: (1) maintenance 

of internal order (IO) master data, (2) CO internal posting, (3) period-end 

processing, and (4) information systems. For your reference, some of the 

important transaction codes for Internal Order are provided in Table 5.7.


Master Data 

Transactions 


Create IO: 

SAP R/3 System → Accounting → Controlling → Internal 

Orders → Master Data → Special Functions → 

Order → Create 

Change IO: 



Order → Change 

Display IO: 



Order → Display 

Create IO Group: 


Orders → Master Data → Order Group → Create 

Change IO Group: 


Orders → Master Data → Order Group → Change 

Display IO Group: 


Orders → Master Data → Order Group → Display 

Manual Reposting of Cost: 


Orders → Actual Postings → Manual Reposting of 

Costs → Enter 

Displaying Manual Reposting of Cost: 



Costs → Display 

Reversing Manual Reposting of Cost: 



Costs → Reverse 

T-code 

KO01 

KO02 

KO03 

KOH1 

KOH2 

KOH3 

KB11N 

KB13N 

KB14N 

Continued

5.7 CO-IO 219 


Manual Reposting of Revenues: 



Revenues → Enter 

Displaying Manual Reposting of Revenues: 



Revenues → Display 

Reversing Manual Reposting of Revenues: 



Revenues → Reverse 

Reposting Line Items: 


Orders → Actual Postings → Repost Line Items → Enter 

Displaying Manual Reposting of Line Items: 


Orders → Actual Postings → Repost Line Items → Display 

Reversing Manual Reposting of Line Items: 


Orders → Actual Postings → Repost Line Items → Reverse 

IO Individual Settlement: 


Orders → Period-End Closing → Settlement → Individual 

Processing 

IO Collective Settlement: 


Orders → Period-End Closing → Settlement → Collective 

Processing 

T-code 

KB41N 

KB43N 

KB44N 

KB61 

KB63 

KB64 

KO88 

KO8G 

TABLE 5.7 

Continued


Information 

Systems 


Line Item Settlement of Investment Order: 


Orders → Period-End Closing → Settlement → Investment 

Order: Line Items 

Orders: Actual Line Items: 


Orders → Information System → Reports for Internal 

Orders → Orders: Actual Line Items 

CO Documents: Actual Costs: 



Orders → CO Documents: Actual Costs 

Display Budget Document: 



Orders → Display Budget Document 

T-code 

KOB5 

KOB1 

KSB5 

KO2B 

TABLE 5.7 


The main activities in the CO-PCA submodules involve: (1) maintenance of 

profit center master data, (2) CO internal posting, (3) period-end processing, and 


codes for Profit Center Accounting are provided in Table 5.8. 

Master Data 


Create Profit Center: 

SAP R/3 System → Accounting → Controlling → Profit 

Center Accounting → Master Data → Profit 

Center → Individual Processing → Create 

T-code 

KE51 

Continued

5.8 CO-PCA 221 

Standard 

Hierarchy 

Profit Center 

Group 


Change Profit Center: 



Center → Individual Processing → Change 

Display Profit Center: 



Center → Individual Processing → Display 

Delete Profit Center: 



Center → Individual Processing → Delete 

Display Changes in Profit Center: 



Center → Individual Processing → Display Changes 

Create Standard Hierarchy: 


Center Accounting → Master Data → Standard 

Hierarchy → Create 

Change Standard Hierarchy: 



Hierarchy → Change 

Display Standard Hierarchy: 



Hierarchy → Display 

Create Profit Center Group: 


Center Accounting → Master Data → Profit Center 

Group → Create 

T-code 

KE52 

KE53 

KE54 

6KEA 

KCH1 

KCH5N 

KCH6N 

KCH1 

TABLE 5.8 

Continued


Actual Postings 


Change Profit Center Group: 



Group → Change 

Display Profit Center Group: 



Group → Display 

Enter Actual Posting: 


Center Accounting → Actual Postings → Profit Center 

Document → Enter 

Display Actual Posting: 


Center Accounting → Actual Postings → Profit Center 

Document → Display 

Change Actual Posting: 



Figures → Change 

Display Statistical Key Figure: 



Figures → Display 

Assessment: 


Center Accounting → Actual Postings → Period-End 

Closing → Assessment 

Distribution: 



Closing → Distribution 

T-code 

KCH2 

KCH3 

9KE0 

9KE9 

9KE5 

9KE6 

3KE5 

4KE5 

Continued

5.8 CO-PCA 223 

Information 

Systems 


Transferring Payables/Receivables: 



Closing → Distribution 

Balance Carry Forward: 



Closing → Balance Carry Forward 

Profit Center: Actual Line Items: 



Profit Center Accounting → Line Item Reports → Profit 

Center: Actual Line Items 

Profit Center: Receivables: 

SAP R/3 System → Accounting → Controlling → 

Profit Center Accounting → Information System → 

Reports for Profit Center Accounting → Line Item 

Reports → Open Items → Profit Center: Receivables 

Profit Center: Payables: 



Profit Center Accounting → Line Item Reports → Open 

Items → Profit Center: Payables 

Profit Centers: Customers (Transferred Periodically): 



for Profit Center Accounting → Line Item 

Reports → Balance Sheet Items Transferred 

Periodically → Profit Centers: Customers (Transferred 

Periodically) 

T-code 

1KEK 

2KES 

KE5Z 

S_ALR_87013343 

S_ALR_87013344 

S_ALR_87013345 

TABLE 5.8 

Continued



Profit Centers: Vendors (Transferred Periodically): 





Periodically → Profit Centers: Vendors (Transferred 

Periodically) 

Profit Centers: Assets (Transferred Periodically): 





Periodically → Profit Centers: Assets (Transferred 

Periodically) 

Profit Centers: Materials (Transferred Periodically): 





Periodically → Profit Centers: Materials (Transferred 

Periodically) 

T-code 

S_ALR_87013346 

S_ALR_87013347 

S_ALR_87013348 

TABLE 5.8 


The main activities in the CO-PA submodules involve: (1) maintenance of 

PA master data, (2) CO internal posting, (3) period-end processing, and 


codes for Profitability Analysis are provided in Table 5.9.

5.9 CO-PA 225 


Change Characteristic Values: 


Profitability Analysis → Master Data → Characteristic 

Values → Change Characteristic Values 

Define Characteristics Hierarchy: 


Profitability Analysis → Master Data → Characteristic 

Values → Define Characteristics Hierarchy 

Maintain Derivation Rules: 


Profitability Analysis → Master Data → Maintain 

Derivation Rules 

Maintain Realignments: 


Profitability Analysis → Master Data → Maintain 

Realignments 

Assessment: 


Profitability Analysis → Actual Postings → Period-End 

Closing → Transfer Cost Center Costs/Process 

Costs → Assessment 

Execute Report: 


Profitability Analysis → Information System → Execute 

Report 

Display Line Items—Actual: 


Profitability Analysis → Information System → Display 

Line Item List → Actual 

T-code 

KES1 

KES3 

KEDE 

KEND 

KEU5 

KE30 

KE24 

TABLE 5.9 

Continued



Summarization Level Data Refresh: 


Profitability Analysis → Tools → Summarization 

Levels → Refresh 

External Data Transfer: 


Profitability Analysis → Tools → External Data 

Transfer → Execute 

T-code 

KEDU 

KEFC 

TABLE 5.9 


The main activities in the CO-PC submodules involve the calculation of cost 

and analysis. For your reference, some of the important transaction codes for 

product costing are listed in Table 5.10. 


Display Materials to be Costed: 


Product Cost Controlling → Product Cost 

Planning → Material Costing → Display 

Materials to be Costed 

Edit Costing Run: 


Product Cost Controlling → Product Cost 

Planning → Material Costing → Costing Run → 

Selection List → CKMATSEL – Create 

T-code 

CKAPP01 

CKMATSEL 

Continued

5.10 CO-PC 227 


Create Cost Estimate with Quantity Structure: 

SAP R/3 System → Accounting → Controlling → Product 

Cost Controlling → Product Cost Planning → Material 

Costing → Cost Estimate with Quantity 

Structure → Create 

Create Cost Estimate without Quantity Structure: 



Costing → Cost Estimate Without Quantity 

Structure → KKPAN – Create 

Price Update: 



Costing → Price Update 

Create Product Cost Estimate: 


Product Cost Controlling → Product Cost Planning → 

Material Costing → Production Lot Cost Estimate → 

Create 

Create Base Planning Object: 


Cost Controlling → Product Cost Planning → Reference 

and Simulation Costing → Create Base 

Planning Object 

Edit Costing Model: 


Cost Controlling → Product Cost Planning → 

Easy Cost Planning and Execution Services → 

CKCM – Edit Costing Model 

T-code 

CK11N 

KKPAN 

CK24 

CKW1 

KKE1 

CKCM 

TABLE 5.10 

Continued



Results of Costing Run: 



Information System → Summarized Analysis → 

Analyze Costing Run → Results of Costing Run 

Price vs. Cost Estimate: 



Planning → Information System → Summarized 

Analysis → Analyze Costing Run → Price vs. Cost 

Estimate 

Variances between Costing Runs: 



Information System → Summarized Analysis → Analyze 

Costing Run → Variances Between Costing Runs 

T-code 

S_ALR_87099930 

S_ALR_87099931 

S_ALR_87099932 

TABLE 5.10

Chapter 6 

FICO QUICK 

TOUR 

This chapter covers, in bullet-point style, the FICO submodules. Note that this 

chapter has an important role from an interview perspective. It is impossible 

to cover all of the submodules of the SAP software in such a small number of 

pages, but this chapter does cover the most important points of the SAP FICO 

submodules. 

6.1 SAP GENERAL 

n 

n 

n 

The client is an independent unit within a system. For example, 

an SAP server may have more than one client. Each client has 

its data environment and the SAP solution stores all master 

data within a client’s environment. When you log into the SAP 

server, you will select your client. However, some tables as well 

as configuration and customization are client independent. 

Because of client dependence and independence, it is not 

desirable to keep different components of the system landscape 

in the same system. 

Operating concerns: Operating concerns represent an 

organization entity from the market segment point of view. You 

can assign several controlling areas to one operating concern. 

CO-PA operates within an operating concern. 

The controlling area: The controlling area is the basic 

organizational unit in Controlling (CO). You may assign more 

than one company code to a controlling area. As a period-end 

activity, you allocate expenses from one cost object to another. 

229

230 CHAPTER 6 FICO QUICK TOUR 

n 

n 

Company code: The company code is an independent account 

unit for which you maintain books of account for external 

reporting. 

In SAP R/3 or mySAP Financial, you follow the variant principle 

to simplify the configuration, The variant principle is a threestep 

process: (1) Create the variant, (2) populate the variant with 

data, and (3) assign the variant to business objects. 

6.2 FI GENERAL 

n 

n 

n 

n 

n 

The term “accounting” is used to capture day-to-day business 

transactions for various purposes. You can broadly classify 

accounting information users as (1) external users, i.e., Internal 

Accounting Standards (IAS), International Financial Reporting 

Standards (IFRS), stockholders, and other legal authorities and 

(2) internal users, i.e., the management of a company. 

The Financial Information (FI) modules take care of external 

reporting by providing information in the form of a balance 

sheet and P&L account. 

The Controlling (CO) module takes care of management’s 

reporting requirements. It offers a variety of reporting tools 

that handle different reporting requirements for the effective 

management of an entity. FI is the main source of data for CO; 

however, sometimes the CO module generates FI postings, such 

as reconciliation posting initiated by the reconciliation ledger. 

To post business transactions to a period, you must define or 

maintain an accounting year or financial year. In SAP R/3 or in 

mySAP Financial, this is called the fiscal year. There are two 

types of fiscal year: (1) year independent and (2) year dependent. 

A year-dependent fiscal year is valid for a particular year that 

you are defining (see Figure 6.1). If you are using a yeardependent 

fiscal year, then each and every year you have to 

maintain the definition of the fiscal year. For an example of a 

shortened fiscal year, is year dependent fiscal year.

6.2 FI GENERAL 231 

FIGURE 6.1 Year-dependent fiscal year 

n 

The second type of fiscal year is a year-independent fiscal year. 

A year-independent fiscal year is not relevant to a particular 

year. The year-independent fiscal year is further subdivided 

into a calendar year and a noncalendar year. A calendar year 

always starts on January 1 and ends on December 31, while a 

noncalendar year can start in any month. 

FIGURE 6.2 Noncalendar fiscal year 

In Figure 6.2, the fiscal years are noncalendar years because they start on 

dates other than January 1.


n 

n 

n 

A fiscal year variant contains the definition of posting periods. 

Generally, a posting period represents a month. In Figure 6.2, 

you defined how many posting periods a fiscal year will have. 

There are two types of posting period; (1) normal posting 

period and (2) special posting period. A normal posting period 

represents a month of a fiscal year, while a special posting period 

is a virtual posting period. Special posting periods are used to 

track year-end activities. 

While posting a transaction, you enter the document posting 

date. Based upon the document posting date, the system 

determines the posting period and the fiscal year to be posted. 

To record transactions in foreign currencies, you maintain 

translation ratios through various tools in mySAP Financial. 

These are (1) inversion, (2) base currency, and (3) exchange 

rate spreads. With the exchange rate spread, you will maintain 

an average rate, and the system will derive the buying rate and 

selling rate. With base currency, you will maintain an exchange 

rate between the base currency and foreign currencies. 


n 

n 

Each G/L is set up according to a chart of accounts (COA). 

The COA contains the definitions of all G/L accounts. The 

definitions consist mainly of the account number, account 

name, and the type of G/L account, i.e., whether the account is 

a P&L type account or a balance sheet type account. 

Each company code uses one COA for the G/L. This COA 

is assigned to the company code, and a COA can be used by 

multiple company codes. This means that the G/L of these 

company codes have an identical structure. A COA is an index 

of G/L accounts. Since the COA is a client-dependent master, 

you have two views for a G/L account master: (1) general data,


which is client dependent, and (2) company code data, which is 

company code specific. 

FIGURE 6.3 G/L master general data segment 

FIGURE 6.4 G/L master company code segments 

n 

n 

n 

To organize a large number of G/L accounts and their 

presentation, you will group together G/L accounts through 

account groups. At a minimum, you should have two account 

groups: (1) balance sheet accounts and (2) profit and loss (P&L) 

accounts. 

A COA broadly consists of balance sheet accounts and P&L 

accounts. During year end, these are treated differently. Yearend 

balances of the balance sheet accounts will be carried over 

to the next year, while year-end balances of the P&L accounts 

will be transferred to retain earning accounts. 

A COA also consists of some special accounts: reconciliation 

accounts and retain earning accounts.


n 

n 

n 

n 

n 

n 

n 

n 

n 

A reconciliation account is a control account of subsidiary ledgers 

for accounts payable (AP), accounts receivable (AR), and assets 

management (AM). You will maintain at least one reconciliation 

account for each category. Subsidiary ledgers are connected to G/Ls 

through reconciliation ledgers. 

Retain earning accounts are used to carry over the net result of 

business activities to subsequent years. 

Account groups control various parameters for G/L account 

masters. These are: the field status variant and the number 

range of the G/L master. 

The field status controls the maintenance and display of G/L 

masters. The fields of the G/L master will have one of the 

following status indicators: Hide, Display, Required Entry, or 

Optional Entry. 

The G/L account master also controls how the business 

transaction will be displayed and managed. These are controlled 

through the open item management attribute, the line item 

display attribute, and account currency. 

Open item management: Open items are treated as incomplete 

transactions, which will be offset by another open item(s). 

Line item management: If this attribute is switched on, you 

can detail line items while viewing a ledger in the G/L master. 

Otherwise, the system will only display the G/L balance. 

By default, all accounts are managed at the company code level 

in company code currency; however, you can maintain a G/L 

account in a foreign currency. If you are maintaining a G/L 

account in a currency other than company code currency, you 

can only post a transaction in that currency. With a company 

code–managed currency G/L account, you can post in any 

currency. 

To meet various legal and management requirements, you 

can present your account in different ways. You will often use 

more than one COA. At best, you can use three COAs for 

a company code: (1) operational COA, (2) group COA, and 

(3) country COA.


FIGURE 6.5 COA 

n 

n 

n 

n 

n 

While posting business transactions, a user selects the 

operational COA G/L account. From the operational COA 

G/L accounts, information flows to other G/L accounts of 

other COAs. 

To present a financial statement, you maintain financial 

statement versions with mySAP Financial. You may create 

any number of financial statement versions to meet your 

requirements. 

To classify and store business transactions, you use document 

types. Document types control the number range of accounting 

documents and allowed account types. mySAP Financial comes 

with standard document types. If these standard document 

types do not meet your requirements, you can create your own 

through transaction code OBA7. 

Accounting documents contain a document header and line 

items. A document header holds information that is applicable 

to the entire document, e.g., company code, document types, 

posting date, document date, etc. 

In order to distinguish between the various FI documents, 

document types are used. Each document is assign to


n 

n 

n 

one document type, and this is entered in the document 

header. Document numbers are provided by the document 

number ranges assigned to one or more document types. Each 

document line item contains one posting key. This is used for 

internal control; during complex postings it tells the system: 

(1) the account type to be posted, (2) whether it is a debit or 

credit posting, and (3) which fields of the line item may have or 

require an entry. 

The SAP software does not allow you to delete an incorrect 

posting. The only way to rectify the incorrect transaction is 

through a reversal of the incorrect posting. There are two types 

of reversal: (1) normal reversal and (2) negative reversal. With 

normal reversal, you post the reversal entry by crediting the 

debit entry and debiting the credit entry. With negative reversal, 

you post the reversal entry by posting entries on both the debit 

and credit sides with the opposite sign. 

If you are working in a corporate group environment, you will 

often come across cross-company code transactions. 

A cross-company code transaction involves more than one 

company code. This situation arises when one company code 

makes purchases for other company codes, one company 

code pays invoices for other company codes, or one company 

code sells goods to other company codes. 

Through transaction code OBYA, you can customize clearing 

accounts in both company codes.


FIGURE 6.6 Cross-company code configuration 

n 

Cross-company code transactions will create a cross-company code 

document, which is a combination of the document number of the 

first company code, the first company code number, and the fiscal 

year. It is stored in the document header of all of the documents 

created so you have a complete audit trail.


FIGURE 6.7 Cross-company code document 

n 

n 

n 

n 

n 

Through transaction code FBU3, you can view cross-company 

code documents. 

mySAP Financial provides two types of clearing open items: 

(1) clearing open items and (2) posting with clearing. In the 

former case, you will clear existing debits with credits. In the 

latter case, you will clear one or more open items while posting 

another business transaction, e.g., payment for invoice. In this 

case, the invoice is an open item and you are clearing it while 

making payment. 

There are two ways to clear transactions: (1) manual clearing 

and (2) automatic clearing. 

When handling payment differences, the system always looks 

for two types of tolerance: (1) tolerance group for employees 

and (2) tolerance group for vendor/customer. The payment 

difference has to be within both tolerances to be handled 

automatically. 

Payment differences arise while clearing open items. Figure 6.8 

shows how to handle payment differences. The system will take 

into consideration employee tolerance and customer/vendor 

tolerance and determine whether or not this payment difference 

is within the limit.


FIGURE 6.8 Payment difference 

n 

n 

n 

If the payment difference is within the limit, a cash discount 

will be posted automatically and the payment difference will be 

either treated as an additional cash discount or charged to an 

expenses account. 

If the payment difference is outside of the tolerance limit, 

the payment will be processed as a partial payment, a residual 

payment, or a payment on account. You can also process the 

payment difference manually. 

In case of partial payment, all line items will remain as open items. 

With a residual payment, the system will clear an invoice with 

payment and create a new open item for the differential amount.


6.4 AP AND AR 

n 

n 

n 

n 

Like a G/L account group, you can create a vendor group 

(through transaction code OBD2 and OBD3). The vendor 

group/customer group controls the field status and number 

range of the vendor master, and whether the vendor/customer is 

a one-time vendor/customer. 

The vendor/customer master is a client-dependent master. 

Any company code within that client may use that master. 

The vendor master has three views or segments: (1) general 

data, (2) company code data, and (3) purchase organization/sales 

organization data. General data is available to all company 

codes within the client, company code data is company code 

dependent and contains all information relating to accounting, 

and purchase sales organization data is purchase sales 

organization specific. 

You will maintain a master record for your regular vendors. 

The master for one-time vendors does not contain any vendorspecific 

information. A one-time vendor master will be used for 

more than one vendor. You will maintain vendor-specific data 

while posting to a one-time vendor at the transaction level. 

A vendor may also be a customer. In this case, you will maintain 

a vendor master as well as a customer master. If you want to 

clear the vendor against the customer or vice versa, you have 

to fill out the highlighted fields in both masters, shown in 

Figures 6.9 and 6.10.

6.4 AP AND AR 241 

FIGURE 6.9 Vendor master control 

FIGURE 6.10 Vendor master payment transaction


FIGURE 6.11 Vendor master 

n 

n 

n 

To pay a vendor for the supply of goods or services, you need 

to maintain a bank account. In mySAP Financial, this is known 

as a house bank. You create the house bank while customizing. 

A house bank has at least one bank account in which you 

maintain bank master data. 

When dealing with the customer and vendor, you use payment 

terms. In SAP solutions, payment terms determine the baseline 

date for due date calculation, the cash discount period, and the 

cash discount percentage. 

You assign default payment terms to the customer or vendor at the 

master level, which can be overwritten while posting a transaction.

6.4 AP AND AR 243 

FIGURE 6.12 Transfer of payment terms 

n 

n 

You can enter the payment terms in the company code segment 

and the purchase organization segment. Now the question arises 

of which payment term holds priority over the other. The logic 

is very simple here: If the transaction originates from MM, the 

MM payment term has priority. If the transaction originates 

from FI, the FI payment term has priority. 

You can use one payment term for both the customer and 

the vendor. While customizing the payment term through 

transaction code OBB8, you will configure whether a payment 

term is applicable to receivable and/or payable. 

FIGURE 6.13 Assigning payment term 

n 

You can block a particular vendor or customer at the company 

code level or at the client level, i.e., for all company codes.


You can carry out this activity through transaction code XK02/ 

MK02/FK02 and XD02/VD02/FD02. 

FIGURE 6.14 Blocking the vendor master 

n 

n 

A payment term determines the baseline date. In turn, the 

baseline date determines the starting date for due date 

calculation, interest calculation, and dunning. 

You have four baseline date options to choose from while 

customizing payment terms. These are: (1) No default (to be 

entered while posting a transaction), (2) Document date, 

(3) Posting date, and (4) Entry date. 

FIGURE 6.15 Setting the baseline date

6.4 AP AND AR 245 

n 

In Figure 6.16, a percentage has been entered with relation to 

days. If the customer pays the amount due within the defined 

number of days, the system will calculate a cash discount subject 

to vendor/customer tolerance. 

FIGURE 6.16 Cash discount determination 

n 

n 

n 

Certain business transactions will be shown separately from 

normal transactions. These types of transactions are called 

special G/L transactions. They are: down payment, bills of 

exchange, and guarantee of payment 

While dealing with day-to-day business, you may enter certain 

types of special transactions called statistical entry and noted 

items. From an accounting point of view, these transactions do 

not affect your financial statement. However, to comply with 

various legal requirements, you need to show them in your 

financial statement. 

Statistical entry: At some point, you may offer a guarantee to a 

third person on behalf of your customer. In this case, you are 

liable to the third party. At the same time, your customer will 

pay you the same amount in case of breach of contract. These 

types of transactions either appear on both sides of your balance 

sheet or appear as notes in your financial statement.


n 

n 

Noted items: Noted items are special G/L transactions that only 

reminds the user about payments that are due or payments to 

be made. A noted item will not update the G/L account. A down 

payment request is a noted item. While displaying the vendor/ 

customer balance, mySAP ERP provides you functionality 

to choose one of these transactions or all transactions with a 

business partner. 

Figure 6.17 is from transaction code FBL1N—Vendor Line 

item display. It allows you to select various types of items for line 

item display. 

FIGURE 6.17 Display options for vendor line items 

n 

While entering a business transaction, a user may not be able to 

post a document because he does not have enough information, 

he is not authorized to post that entry, or he may have posted an 

incomplete entry. 

To handle these types of situations, mySAP ERP provides you 

with hold documents and park documents. 

n 

Hold document: Say a user has a business transaction that has 

100 line items. He entered 10 line items and realized that he has 

to address some other critical issue. In this situation, since the 

document is incomplete, he cannot post it. He has two options: 

(1) Come out of the entry screen and enter all of the line items 

again or (2) temporarily save it. The latter action is called a hold

6.5 AA 247 

n 

document. When you have a hold document, the system will not 

check that debits equals credits. 

Park document: This functionality also relates to temporarily storing a 

document. The major difference between parking and holding is the 

debit and credit check. When a document is parked, debits should 

equal credits. 

6.5 ASSET ACCOUNTING (AA) 

n 

n 

n 

n 

n 

n 

The AM module is a submodule of the FI module. Like AP and 

AR, AA also serves as a subsidiary ledger. 

In AA you are using a chart of depreciation (COD), which is an 

index of depreciation areas. The COD is client dependent, and 

can be assigned to more than one company code. Unlike a COA, 

you cannot create a COD. You can draw your own COD by 

copying the standard COD template provided by SAP. 

To accommodate different depreciation rules for different 

purposes, you can use more than one depreciation area. In SAP 

R/3, you can configure up to 99 depreciation areas. 

The assignment of a COA to a company code is independent 

from the assignment of a COD. 

Since SAP R/3 is an integrated system, the AA module transfers 

data to other modules and receives data from other modules. 

a. When you purchase assets through the MM module, the MM 

module passes data to the FI-AA module. 

b. When you run depreciation, the FI-AA module passes this 

information to CO modules. 

c. Through the Plant Maintenance (PM) module, you can settle the 

maintenance cost that is to be capitalized. 

d. You use the asset class as selection criteria for various reports in 

FI-AA. 

For controlling purposes, you need to transfer depreciation 

expenses from the FI-AA module to the CO module. Depending


n 

n 

n 

n 

n 

n 

n 

on business requirements, you can define the cost center at 

either the assets master level or the depreciation cost element 

level. 

If you want to distribute depreciation expenses to various cost 

centers, you can achieve this with a distribution cost center and 

distribution cycle. 

During the depreciation run, depreciation expenses and CO 

interest are always posted to default cost center. 

The asset class represents the classification criteria of assets. The 

utmost care has to be taken while deciding asset classification. 

The asset class controls the number range of assets, account 

determination, screen layout of the asset master, and 

maintenance level. 

Generally, you classify assets on the basis of the presentation of 

your financial statement. 

The AA module does not differentiate between tangible assets 

and intangible assets. 

In the AA module, you have the option to maintain complex 

assets individually by their components. For example, a desktop 

consists of a PC, a monitor, a mouse, and a keyboard. Now here 

you have two options: (1) simple assets—treat the entire desktop 

package as one asset or (2) complex assets—treat each individual 

component as an asset within an asset. In the latter case, you 

will maintain individual components of your desktop through 

subassets. Subassets have the following advantages: You can 

depreciate different components at different rates and you can 

track your individual subassets through a subassest’s number. 

Assets under construction (AUC) is a special class of tangible 

assets. Because of its special nature, it appears separately in 

financial statements. You can manage AUC through individual 

management and collective management. After completion of 

the project, you will settle to assets either through line item 

settlement or through distribution.

6.5 AA 249 

n 

Like AUC, Low Value Assets (LVA) is also a special class of 

assets. Generally, you maintain this asset class for those assets 

that need to depreciate in the same year. In the depreciation 

area at the company code level, you set your maximum amount 

for low value for assets acquisition and purchase orders. 

Due to special accounting requirements, leased assets are also 

considered special assets. During the lease period, the leased 

asset is the property of the lessee or the manufacturer. From the 

lease and accounting point of view, there are two kinds of lease: 

(1) capital lease and (2) operating lease. With a capital lease, 

the lesser will break the total lease cost into capital costs and 

interest. The capital cost will be capitalized and depreciation will 

be calculated. The interest component will be charged to the 

P&L account as a financial cost of the financing activities. With 

an operating lease, the lesser will charge the lease payment as a 

periodic cost in the P&L account. 

FIGURE 6.18 Leasing assets


n 

n 

n 

n 

n 

n 

To comply with different legal and managerial requirements, 

you often adopt different methods of calculating depreciation. 

Depreciation areas take care of this requirement. One depreciation 

area takes care of one type of depreciation. In SAP R/3, you can 

define up to 99 depreciation areas. Through transaction code 

OADB you can add and delete depreciation areas. 

When you have parallel currencies, you have to define one 

depreciation area for each currency. These depreciation areas 

should be identical to the book depreciation areas. 

Derived depreciation areas are special depreciation areas that 

derive their values from one or more. 

You can add or delete depreciation areas in AA. However, if you 

want to delete a depreciation area from a COD, the depreciation 

area in question should fulfill the following preconditions: 

n 

n 

n 

The depreciation area should not be a master depreciation area. 

There should not be any posting in that depreciation area. 

The depreciation area should not be a reference depreciation area 

for a derived depreciation area. 

Through transaction code AS90, you can determine 

various accounts to be used for G/L account posting. This 

automatic account determination happens based on the 

COD, COA, account determination, and depreciation area. 

Transactions posted in the AA module update the APC cost in 

the book depreciation area and change the forecast depreciation 

in real time. Periodically, you will run a depreciation run, 

which posts APC costs to other depreciation areas and updates 

depreciation. 

Due to changes in the business process, you may find that 

depreciation was understated or overstated. To handle this 

type of situation, SAP solutions provide two methods: (1) the 

catch-up method and (2) smoothing. With the catch-up method, 

the system will calculate the differential depreciation by

6.5 AA 251 

n 

n 

n 

n 

n 

n 

reducing posted depreciation from planned depreciation and 

post the differential depreciation in the current period. With 

smoothing, the differential depreciation will be spread over the 

remaining posting period. 

You can assign depreciation keys for depreciation areas through 

transaction code OAYZ. In addition to other parameters, you 

are assigning five calculation methods to depreciation keys. 

These are: (1) base method, (2) declining-balance method, 

(3) maximum amount method, (4) multilevel method, and 

(5) period control method. 

Base method: The base method contains general control 

parameters the system needs for calculating depreciation. 

With this method, you specify the depreciation type, the 

depreciation calculation method, and the treatment of the end 

of depreciation. 

Declining-balance method: The declining-balance method 

includes both the declining-balance method and the 

sum-of-the-years-digits method. The normal declining-balance 

method of depreciation multiplies the straight-line percentage 

rate resulting from the useful life by a given factor. 

Maximum amount method: You use the maximum amount 

method to specify the maximum amount up to which the system 

should calculate depreciation until a certain calendar date. 

Multi-Level method: Base methods for certain depreciation 

calculation methods use either a total percentage rate or a 

periodic percentage rate to calculate depreciation. 

Period control method: To determine the depreciation start 

and end dates for asset transactions, you can set an appropriate 

period control in the period control method for these four 

transaction categories: (1) acquisitions, (2) subsequent 

acquisitions/post-capitalization, (3) intracompany transfers, and 

(4) retirements.


n 

Sometimes it is necessary to depreciate assets up to a scrap 

value. To handle this type of situation, SAP R/3 has provided 

two different approaches: (1) by assigning a scrap value key to 

the depreciation key used in the depreciation area or (2) by 

explicitly entering an absolute scrap value in the asset master 

data for the depreciation area. 

6.6 CO GENERAL 

n 

n 

If you divide accounting into internal and external accounting, 

FI represents external accounting, while CO represents 

internal reports. CO has a management-oriented approach. It 

is a tool in the hand of management for effective control of an 

entity. Like the company code, in CO your highest entity is the 

controlling area. Depending upon company code assignment, 

your controlling area may be a cross-company code controlling 

area or the company code = controlling area. This configuration 

is done through transaction code OKKP. You can perform 

cross-company code cost accounting by assigning more than one 

company code to one controlling area. You may assign multiple 

company codes to a controlling area under these conditions: 

n 

n 

n 

A company code may have different operating currencies. In this 

case, you may choose either one of the company code currencies 

as the controlling area’s currency or you may choose a different 

currency as the controlling area’s currency. 

A company code may use different fiscal year variants, but they 

should have the same number of posting periods. 

All company codes within a controlling area use the same COA. 

The CO module consists of the following submodules, which 

handle different user requirements.

6.6 CO GENERAL 253 

FIGURE 6.19 CO module components 

n 

n 

n 

n 

Cost Center Accounting (CEL): Cost element is the carrier of 

cost between FICO and within the CO module. It classifies 

costs and revenues posted to CO according to their origin. 

Through the cost element, you can reconcile cost flows between 

FI and CO. 

Overhead Accounting: Cost center accounting (CCA), along 

with internal order, takes care of those costs that are not directly 

attributable to any product or service, i.e., indirect costs. This is 

essential, as you have to track these costs from the control point 

of view. 

Product Cost Planning (PCC) is used for evaluating the cost of a 

product. This submodule provides various types of information 

about product costs, which leads toward a decision about 

producing a product or manufacturing in-house. 

Profitability Analysis (PA) deals with market segments and 

provides various reports for analyzing the results of enterprise 

activities on the external market. Through this module, you can 

determine how successful the enterprise is in different market 

segments, i.e., products, divisions, and customers.


n 

n 

n 

n 

n 

Profit Center Accounting (PCA): This module plays an 

important role from a responsibility point of view. It takes 

care of P&L analysis of the subareas in the enterprise that are 

responsible for profits. 

All the CO submodules described here have their master data, 

i.e., cost element, cost center, profit center, characteristics, etc. 

In CO you will also have various master data groups, which are 

used for easy reporting and to process more than one set of 

master data at a time. Master data groups are cost center groups, 

cost element groups, and IO groups. Master data groups make 

analysis and reporting easier. Instead of processing master data 

individually, you select a master data group to process all of the 

master data at one time. When reporting at each hierarchical 

level, the system will generate an automatic total, making 

reporting easier. Within a client, you can use each master data 

name once. 

When indirect expenses are posted in FI using cost element, the 

system will post a one-sided entry through the CO document. 

While posting FI transactions, CO is being populated through 

various default assignments or manual assignment. When 

posting happens to CO, SAP R/3 will generate a CO document. 

When posting happens to more than one cost object, true 

posting happens to one-cost objects and posting to other cost 

objects are statistical. 

You cannot settle statistical posting. Statistical posting is for 

informational purposes only. 

6.7 CEL 

n 

Cost Element Accounting (CEA) is a submodule of CO. Cost 

flows between FI and CO and within CO through cost element 

and/or revenue. When cost flows from FI to CO, it flows 

through the primary cost element. When cost flows within CO, 

it flows through the primary cost element as well as a secondary 

cost element. Through cost element, you can track the point of 

origination of expenses.

6.8 CCA 255 

n 

If you have an expense account for which CO posting is 

required, a cost element has to be created for cost accounting 

purposes. While posting within CO, you will create a secondary 

cost element for which there will not be any FI posting. 

6.8 COST CENTER ACCOUNTING (CCA) 

n 

n 

n 

n 

Costs directly attributable to a product and services are assigned to 

product/services. Costs other than direct costs, i.e., personnel costs 

or rental costs, are captured through the Cost Center Accounting 

module and later on assigned to different CCA modules according 

to their consumption. 

Posting expenses to cost centers enables internal accounting. 

Before creating cost center master data and the cost center 

hierarchy, you have to plan the organization structure. The 

organization structure of the cost center may depend upon 

allocation criteria, geographical requirements, etc. The highest 

node of the cost center organization structure is called the 

standard hierarchy. 

Within CCA, cost center master data controls setup parameters. 

You can create cost center master data through transaction 

codes KS01 (Create), KS02 (Change), and KS03 (View). 

These are: 

n 

n 

n 

n 

Header information: This includes the cost center number and the 

controlling area for which this is created. 

Basic data: This contains cost center manager and cost center type. 

Hierarchy area: Here you are assigning the cost center to a group 

note in order to create the organization hierarchy. 

Company: Since cost centers are company code dependent, when 

you are working in cross-company code controlling areas, you have 

to assign the cost center to one of the company codes. 

Within CCA, you use a statistical key figure (SKF) to distribute/ 

allocate one or more cost center costs to various cost centers, 

e.g., the number of employees in the IT department.


n 

n 

n 

n 

n 

n 

The SKF may be a fixed value or a total value. With a fixed value 

SKF, values will carry over to a future period, while a total value 

SKF is valid for a particular period. 

A purchase order does not create an FI document. However, 

if a commitment is active, a purchase order will create a 

commitment posting. 

Once you receive goods, the SAP R/3 system will clear 

commitment postings and post actual cost. 

Sometimes, some of the costs accrue in FI in a random fashion, 

which makes period comparison questionable. You can configure 

the accrual concept in CO to overcome this difficulty. The CO 

module provides two types of accrual calculation: (1) percentage 

method and (2) target = actual method. 

Through the accrual process, you can accumulate certain costs 

periodically in CO, which will be offset by an FI transaction. 

In CCA, you have various methods to transfer cost from one cost 

center to other cost objects. These are: reposting, assessment, 

and distribution. 

n 

n 

n 

Reposting enables you to correct posting errors. It transfers costs 

from the cost center to other cost objects, while retaining original 

cost elements. There are two types of reposting: (1) manual 

reposting and (2) line item reposting. With manual reposting, you 

transfer cost (or revenue) from cost centers to other objects based 

on certain distribution rules. With line item reposting, you repost 

or transfer line items from cost centers to other cost objects with 

reference to an FI document. 

Distribution is another method of transferring cost from a cost 

center to other cost objects. Sometimes, while incurring costs in FI, 

you do not have enough information to distribute your expenses to 

other cost centers. In this situation, you could collect these costs in 

a cost center and later on distribute them to other cost centers. As 

with reposting, distribution also retains the original cost element. 

You can reverse and repeat distribution as often as desired. 

Assessment is used to allocate primary and secondary costs from one 

cost center to other cost objects. In the assessment process, you will 

use assessment cost element as a carrier of cost. During this process, 

you will lose the original cost element.

6.9 IO 257 

n 

In CO, you observed that you are following various methods 

to transfer cost from one cost object to others. Some of these 

transfers are within the CO, and some are within the company 

code level. At the end of the month, it is essential to reconcile 

data for internal accounting with data for external accounting. 

The reconciliation ledger facilitates this reconciliation. 

6.9 IO 

n 

n 

n 

n 

n 

All indirect costs flow either to cost centers or to overhead IO. 

IO holds cost and/or revenue for short periods. You can divide 

IO into the following categories: (1) overhead order, (2) accrual 

order, and (3) order with revenue. 

n 

n 

n 

Overhead order captures indirect costs not directly attributable to 

any product or services for a short period. 

Accrual order accumulates certain costs that will be offset by 

another entry at a particular interval. 

Order with revenue is used to track costs and revenue for a 

particular object. 

IOs normally act as an interim cost collector and a tool for 

planning, monitoring, and reporting transactions. Once the 

objective of the IO is complete, the costs captured in IO have to 

be settled to their cost center/IO or to a G/L. 

IO is used in the SAP R/3 system for planning, monitoring, 

controlling, and settling a particular project. You use different 

types of IO as mentioned earlier to capture different types of 

requirements. 

You will create an IO with reference to order type. Order 

type controls the number range of the IOs, types of orders, 

settlement profile, and budget profile. 

Depending upon master data attributes, the SAP R/3 system 

posts transactional data either as real postings or as statistical 

postings.


n 

n 

n 

n 

n 

When the IO is statistical and you are posting FI transactions, 

if you are assigning expenses to IO and cost centers, then the 

real posting goes to the cost center and the statistical posting 

happens to IO. 

Real postings always happen to real IO. 

Like assessment or distribution for cost centers, you transfer the 

IO cost from IO to other cost objects through settlement. After 

completion of the IO life cycle, you can settle IO to its original 

cost center. In the case of external IO settlement, the settlement 

process will create an FI posting. 

You run order settlement to settle transfer IO cost to its final 

destination. You can run settlement either at the period end or 

at the end of the order life. 

In the SAP R/3 system, you can settle IOs (CO component), 

sales orders (SD component), projects (PS component), and 

production orders with product cost collectors (PP component) 

to profitability segments. 

6.10 PA 

PA provides various reports for analyzing the results of enterprise activities on 

the external market. Through this module, you can determine how successful 

the enterprise is in different market segments, i.e., products, divisions, and 

customers. 

n 

The PA module (CO-PA) is used to measure the profitability 

of segments. A market segment may be a product, customer, 

geographical area, company code, or business areas. This is a 

good tool to monitor marketing activities with a market-oriented 

approach.

6.10 PA 259 

n 

n 

n 

n 

PA is one of the most important submodules of CO and is widely 

used. There are two types of PA: (1) costing-based PA and 

(2) account-based PA. 

Among the two types of PA, costing-based CO-PA is more 

widely used. 

Costing-based CO-PA generates reports based on segments. 

Segments represent one characteristic or a combination of 

characteristics. 

Table 6.1 lists the differences between costing-based CO-PA and 

account-based CO-PA. 

Costing-based CO-PA 

1. Uses characteristics and value fields to 

display reports. 

2. In costing-based CO-PA, you can calculate 

anticipated cost. 

3. Uses tables specific to CO-PA, which may 

or may not agree with FI. 

4. Revenue and cost of sales are posted when 

the billing document is posted. 

5. At a given point in time, it may or may not 

reconcile with FI. 

Account-based CO-PA 

1. Uses cost and revenue elements to display 

reports. 

2. Takes real cost and revenue from FI; hence 

you cannot calculate anticipated cost. 

3. Uses CO application tables. 

4. Revenues are posted when the billing 

document is posted, while cost of sales 

is posted when FI posting occurs for 

goods issue. 

5. Always reconciles with FI. 

TABLE 6.1 Costing-based CO-PA versus account-based CO-PA 

n 

In costing-based CO-PA, CO-PA stores its data in a separate 

set of tables. While generating operating areas, the system will 

create these tables. These tables are CE1XXXX, CE2XXXX,


CE3XXXX, and CE4XXXX, where XXXX represents the 

operating concern. Figure 6.20 shows how data is organized into 

different tables in CO-PA. 

FIGURE 6.20 Costing-based CO-PA tables 

n 

n 

n 

n 

CO-PA gets its data from the SD, MM, and FI modules and 

from overhead controlling through cost center assessment and 

IO settlement. 

When you make sales through the SD module, depending on 

the sales order status, the SD module passes all information 

relating to sales to FI as well as to CO. 

Figure 6.21 shows when the FI and CO modules are updated. 

At the point of delivery and at the point of billing, the SD 

module passes information to FI, which creates the FI 

document as well as the CO document. 

Account-based CO-PA is updated with the cost of material 

when delivery occurs from the SD module, while revenue is 

updated when the SD module passes the billing document to 

FI. However, with costing-based CO-PA, both revenue and 

cost are updated when the SD module passes billing document 

information.

6.11 PCA 261 

FIGURE 6.21 Time of posting into CO-PA from the SD module 

n 

CO-PA gets its data from various modules as follows: 

n 

n 

n 

From SD: With costing-based CO-PA, sales data passes to CO-PA 

when the order is created or changed, or during billing. With 

account-based CO-PA, CO-PA gets it data when goods are issued 

or during billing. 

From FI: Direct costs that are attributable to a particular segment 

are transferred directly from FI. 

From CO: Indirect costs can be periodically transferred into 

CO-PA, using allocations, settlements, and assessments. 

6.11 PCA 

The PCA module plays an important role from a responsibility point of view. 

Along with PA, this module plays a leading role in profitability management for 

an enterprise. It takes care of P&L analysis of the subareas in the enterprise 

that are responsible for profits.


n 

n 

n 

n 

n 

n 

n 

n 

n 

This module tracks internal profit generated by various 

responsibility centers. You can map your product, branches, and 

functionality as a profit center. This is a management-oriented 

approach from the control point of view. 

You can transfer certain balance sheet items, which along 

with cost and revenue give you important ratios like return on 

investment (ROI). 

The cost center profit center master contains header 

information, basic data, group assignment, and validity period. 

Since a profit center is a component of enterprise CO, by 

default a profit center is valid for all company codes assigned to 

a controlling area. However, you can limit this by deselecting 

company code assignment. 

Assets, cost centers, business processes, IOs, projects, 

production orders, and cost objects have a field for profit 

center assignments in their master records. When you post any 

transaction to one of these objects, the profit center is populated 

with data. 

Based on configuration, PCA facilitates profit center valuation. 

When a goods movement takes place between profit centers, it 

can be treated as a sale in PCA and the goods valued based on 

either legal valuation or profit center valuation. 

If the selling profit center and the buying profit center belong 

to the same company code, then valuation takes place based on 

profit center valuation. Otherwise, legal valuation is used. 

In profit center valuation, you can determine the transfer price, 

which is generally cost + margin. 

Profit center accounts get their data from FI and CO posting in 

the following ways: 

n All postings for revenue and cost elements (assignment to profit 

center using CO account assignment object) 

n Expense and revenue accounts that are posted using logistic 

transactions

6.12 PCC 263 

n 

n 

Balance sheet accounts and other expense and revenue accounts 

(optional) 

Like cost center assessment and distribution, you can use profit 

center assessment and distribution to transfer costs from one 

service cost center to other cost center. 

6.12 PCC 

PCC is used for evaluating the cost of a product. This submodule gives various 

types of information about product costs that lead toward a decision about 

whether to produce a product or manufacture in-house. It analyzes the actual 

cost and the planned cost for producing a product. 

n 

n 

n 

In product costing, the material master, BOM, work center, and 

routing are important: 

n 

n 

n 

The material master controls attributes of materials, i.e., raw 

materials, assemblies, and products. 

A BOM represents a list of materials used to produce a product. 

A work center is the location where you are producing your product. 

An order is related to the product and holds and supplies 

information about the planned order cost and the actual 

cost incurred while producing the product. It facilitates the 

comparison of planned cost and actual cost at a detailed 

level. Once you have completed production, you may settle 

production order to finished stock. 

A sales order collects cost and revenue for a particular sales 

order and facilitates the comparison of actual and planned cost 

and revenue.

Chapter 7 

S PECIAL AREAS 

Some of the areas in the FICO modules are complex, and deserve special 

attention from an interview and consulting point of view. This chapter discusses 

some of these important areas. 

7.1 FOREIGN CURRENCIES 

You carry out accounting for a company code in the country currency (local 

currency) of the company code. Therefore, you must specify the local currency 

in the system for each company code. All other currencies used are indicated as 

foreign from the point of view of the company code. There are several situations 

in which you need foreign currencies: (1) to post and save receivables and 

payables in foreign currency, (2) to make payments in foreign currency, (3) to 

manage accounts in foreign currency (foreign currency balance sheet accounts), 

and (4) to carry out consolidation and prepare corporate group reports. 

These are the following configuration steps for foreign currencies: 

1. Check Currency Codes (SPRO) : 

SAP solutions come with standard currency codes for the ISO company codes. 

Sometimes circumstances arise in which you have to define new currency. 

You can do so through this step. 

2. Set Decimal Places for Currencies (OY04) : 

In this step, you will define the number of decimal places for the currency. 

3. Check Exchange Rate Types (SPRO) : 

In this step, you will define exchange rate types, which you will use later on 

for various transactions. 

265

266 CHAPTER 7 SPECIAL AREAS 

4. Define Valuation Methods (OB59) : 

To valuate foreign currencies, you need at least one valuation method. With 

the valuation methods, you will define how to handle foreign currency 

valuation methods and the exchange rate types you are going to use. In a 

high-level valuation method, you will hold various parameters for foreign 

currency valuations. 

5. Prepare Automatic Postings for Foreign Currency Valuation 

(OBA1): 

In this step, you will assign various G/L accounts to record foreign valuation 

differences. 

These are the following application steps for foreign currencies: 

6. Enter Exchange Rates (SPRO): 

In this step, you will enter exchange rates to convert one currency to 

another. 

7. Foreign Currency Valuation (F.05): 

This transaction code is used to valuate foreign currencies. Foreign currency 

income and expenses will be recorded in the respective account defined 

through transaction code OBA1. 

7.2 INTERCOMPANY TRANSACTIONS 

In today’s complex business world, a corporate group may have more than one 

legal entity. When these legal entities make transactions between themselves, 

these transactions are called intercompany transactions. Here are some examples 

of intercompany transactions: 

n 

n 

n 

n 

One entity makes payments for other entities. 

One entity incurs expenses for other entities. 

One entity sells its products or services to other entities. 

One entity purchases goods or services from other entities.

7.2 INTERCOMPANY TRANSACTIONS 267 

To deal with these kinds of expenses, you need to carry out the following 

steps in your SAP solutions: 

1. Create customer and/or vendor master in the respective company codes. 

2. Set this relation in transaction code OBYA. 

FIGURE 7.1 Transaction code OBYA—cross-company transaction configuration 

When you post an intercompany transaction, the SAP system will generate 

three accounting documents: (1) an FI document for the first company code, 

(2) an FI document for the second company code, and (3) a inter-company 

document.


FIGURE 7.2 Transaction code FBU3—cross-company transaction display 

The cross-company/inter-company code document number consists of the 

first company code document number, plus the company code, plus the last two 

digits of the fiscal year. Table 7.1 lists some commonly used transaction codes for 

cross-company/inter-company posting.

7.3 BANK RECONCILIATION 269 

T-Code/Programs 

Description 

FBU3 Display cross-company 

document 

FBU8 

Cross-company reversal 

RFBVOR00 

Report on cross-company 

transactions 

TABLE 7.1 Transaction codes for cross-company/inter-company documents 

7.3 BANK RECONCILIATION 

Bank reconciliation is a process whereby you are matching your accounting 

records with the bank record. At a particular point in time, your accounting 

record may or may not match the bank record. This is due to the time difference 

between recording transactions in the company’s books of account and the bank’s 

transaction postings. At the end of the month or at a particular time interval 

agreed to with the bank, the bank sends a bank statement to the company. 

The company compares the bank statement with the transactions recorded in 

its books of account. This process may bring up the true balance with the bank, 

a transaction the company failed to record, or a transaction recorded by the bank 

that does not pertain to the company. There are two approaches to remedy this: 

(1) adjusting the balance per bank or (2) adjusting the balance per books.


The steps involved in each of these approaches are presented in 

Table 7.2. 

Adjusting the Balance per Bank 

Balance per Bank Statement on 

MM/DD/YY 

Add: Deposits in transit 

Deduct: Outstanding checks 

Add or Deduct: Bank errors 

Adjusted/Corrected Balance 

per Book 

Adjusting the Balance per Books 

Balance per Books on MM/DD/YY 

Deduct: Deposits in transit 

Add: Outstanding checks 

Add or Deduct: Bank errors 

Adjusted/Corrected Balance 

per Bank 

TABLE 7.2 Bank reconciliation 

In SAP solutions, when the bank reconciliation process is implemented, 

you will have a minimum of three G/L accounts: (1) incoming clearing account, 

(2) outgoing clearing account, and (3) main account. 

Once the company has issued checks to their vendors, it will pass the following 

entries: 

Debit Vendor Account 

Credit Outgoing clearing account 

When receiving checks, the company will pass the following entries: 

Debit Incoming clearing account 

Credit Customer Account 

When the company receives a bank statement from its bank, it passes the 

following accounting entries: 

For incoming payment: 

Debit Bank main account 

Credit Incoming clearing account

7.4 LOCKBOX CONFIGURATION 271 

For outgoing payment: 

Debit Outgoing clearing account 

Credit Bank main account 

When the company passes these entries, the main bank account balance 

will agree with the bank balance as per bank. 

To carry out automatic/manual bank reconciliation, you need to configure 

the following steps: 

n 

n 

n 

n 

n 

Create Account Symbol (OT53): In this step, you will create 

various IDs for banking transactions, such as the following: 

(1) CI—Check Issues, (2) CR—Check Receipts, (3) BD—Bank 

Debits, (4) BC—Bank Credits, and (5) BM—Bank Main Accounts. 

Assign Account to Account Symbol (OT53): In this step, you 

will assign G/L accounts to account symbols. 

Create Keys for Posting Rule (OT53): In this step, you will 

create posting rules and IDs. 

Define Posting Rules (OT53): In this step, you will assign 

posting keys, account symbols, document types, and posting 

types to posting rules. 

Define Variant for Manual Bank Statement (OT43): In 

this step, you will define a screen variant for data entry for bank 

reconciliation. 

Using transaction code FF67 from the application menu, you can input 

data for manual bank reconciliation statements. You can upload a BAI file for 

electronic bank statements through T-code FF.5. 

7.4 LOCKBOX CONFIGURATION 

A lockbox is an arrangement with a bank under which payments are mailed to a 

strategically located post office box that is serviced by the bank. The bank picks 

up the payments from the post office several times a day and accelerates the 

processing of the checks to make funds available to the customer. Lockboxes 

enhance the security and control of funds and can reduce workloads in customer 

service offices.


The following steps need to be carried out to use a lockbox: 

1. Define House Bank (FI12): In this step, you will create a house bank, bank 

ID, and account ID. Each house bank of a company code is represented by a 

bank ID in the SAP system, and every account at a house bank is represented 

by an account ID. In the SAP system, you use the bank ID and the account 

ID to specify bank details. These specifications are used, for example, for 

automatic payment transactions to determine the bank details for payment. 

Path : SAP Customizing Implementation Guide → Financial Accounting → Bank 

Accounting → Bank Accounts → Define House Banks 

2. Define Lockboxes for House Bank (SPRO) : In this step, you define 

your lockbox accounts at the house banks. Thus, on the outgoing invoice you 

can inform your customer of the lockbox to which payment is to be made. 

By specifying this, you can optimize the payment transactions. The lockbox 

procedure is currently used only in the United States. 

Path: SAP Customizing Implementation Guide → Financial Accounting → 

Bank Accounting → Bank Accounts → Define House Banks 

3. Define Lockboxes for House Banks (SPRO) : In this activity, you store 

control data for the lockbox procedure. This data is needed for importing 

lockbox files sent by banks. Currently, only BAI and BAI2 file formats are 

supported by SAP solutions. 

Path: SAP Customizing Implementation Guide → Financial Accounting → Bank 

Accounting → Bank Accounts → Define Lockboxes for House Banks 

4. Define Posting Data (SPRO) : In this activity, you store information needed to 

process particular lockbox data and generate postings. The Destination and Origin 

are routing information and defined by your bank. For every unique destination/ 

origin, posting information is needed to create the following postings: 

G/L posting—Debit bank account (incoming checks) and credit payment clear- 

ing account 

A/R posting—Debit payment clearing account and credit customer account 

n 

n 

Path: SAP Customizing Implementation Guide → Financial 

Accounting → Bank Accounting → Business Transactions → Payment 

Transactions → Lockbox → Define Posting Data 

The following steps need to be carried out from the application side: 

1. Main Lockbox Program to Upload Data (FLB2): 

2. Post Processing of Lockbox Data (FLB1):

7.5 REVENUE RECOGNITION 273 

7.5 REVENUE RECOGNITION 

The revenue recognition principle arises from accrual accounting and the 

matching principle. Accrual accounting and the matching principle help the user 

determine how a business entity will determine whether a particular transaction 

will be treated as an expense or revenue. 

In accrual accounting, revenues are recognized when you have realized and 

you have performed, i.e., when goods are transferred or services rendered, no 

matter when cash is received. 

In cash accounting, revenues are recognized when you have received cash, 

regardless of the timing of goods or services sold. Revenue recognition depends 

upon the nature of the transaction. From an academic point of view, transactions 

can be broadly divided into four types: (1) selling inventory, (2) selling services, 

(3) leasing activities, and (4) selling of assets other than inventory. 

Revenue recognition occurs from four types of transactions: 

1. Revenue from selling inventory is recognized at the date of sale, which is 

often interpreted as the date of delivery. 

2. Revenue from rendering services is recognized when services are completed 

and billed. 

3. Revenue from permission to use a company’s assets (e.g., interest for using 

money, rent for using fixed assets, and royalties for using intangible assets) 

is recognized as time passes or as assets are used. 

4. Revenue from selling an asset other than inventory is recognized at the point 

of sale when it takes place. 

Revenue recognition mostly applies when you are billing your customer in 

advance. For example, you entered a service contract (such as a maintenance 

contract) with your customer for $12,000 for one year. As per payment terms, 

you billed your customer in advance. Therefore, as of January 1, you billed your 

customer for an entire year and the customer paid. At the end of January, you can 

treat $1,000 as your income and the remaining $11,000 remains as a liability.


FIGURE 7.3 Revenue recognition 

To handle revenue determination in an SAP solution, you need the following 

configuration: 

1. Set Revenue Recognition for Item Categories : In this step, you will 

maintain two fields: (1) your revenue recognition method and (2) the 

start date. These configuration steps are in the following path: Sales and 

Distribution → Basic Functions → Account Assignment/Costing → Revenue 

Recognition → 

FIGURE 7.4 Revenue recognition

7.6 AUTOMATIC PAYMENT PROGRAM 275 

Rev. recognition: Here you specify the revenue recognition category. There 

are four types of revenue recognition categories: (1) No value, (2) A, (3) B, and 

(4) D. This designates how you are going to determine your revenue. 

Acc. period start: This indicator determines the start date of revenue 

recognition. 

2. Maintain Account Determination: In this IMG step, you will assign various 

G/L accounts to which transactions will be posted. 

Determine the revenue account: The revenue account is maintained in the first 

column. This is configured through transaction code VKOA. 

Assign account for unbilled receivables: In this step, you will assign G/L 

accounts for the deferred revenue account (special G/L account) and the 

unbilled receivable account. 

After configuration, the SD user will post the customer invoice for the full 

amount in the SD module. Once you run transaction code VF44, the system will 

list the transactions that need to be considered as revenue for the said period. 

7.6 AUTOMATIC PAYMENT PROGRAM 

Through an automatic payment program, you can pay both vendors and 

customers to whom you owe money. The transaction code for the configuration 

of an automatic payment program is FBZP. To execute the program, you would 

use transaction code F110. There are five steps to configure an automatic 

payment program: 

1. All Company Code: Enter the sending and paying company codes, outgoing 

payment with cash discount from. In this step, you will define the sending 

and paying company code relation. 

2. Paying Company Code : Enter the minimum amount of the incoming and 

outgoing payments and the form for the payment advice. 

3. Country Payment Methods: Select Check will be created, Allowed for 

personal payments, Street, P.O. box or No. (bank details for wire transfer), 

or RFFOUS_C (RFFOUS_T for wire transfer) as the print (payment) 

program. 

4. Company Code Payment Methods: Enter minimum and maximum 

amounts and the form for payment transfer. The payment per due day, 

optimized by bank group or postal code, can also be selected.


5. Bank Determination : If there is more than one house bank, a ranking order 

can be given. Under Amounts, specify the amount available for outgoing 

payment. Under Accounts, enter the bank clearing account for the bank 

subaccount. 

After configuring the automatic payment program, you will run it using 

transaction code F110. Follow these steps: 

1. Enter the Run Date and Identification and go to the Parameters tab. 

2. Enter company codes, payment methods, the next pay date, and vendor 

accounts. 

3. Go to the Additional Log tab and select due date check, payment method 

selection in all cases, and line items of the payment documents. 

4. Go to the Printout/data medium tab, enter the variant against the payment 

program, and select Maintain Variants . 

5. Enter the paying company code, house bank details, and check lot 

number. 

6. Select Print Checks and Print payment summary for checks and Print 

payment advice notes for wire transfers (enter the printer and select 

Print immediately). Also set the number of sample printouts to zero. 

7. Then execute Proposal , Payment run , and Printout . 

7.7 THREE-WAY MATCH 

The three-way match is part of the procure to pay (P2P) process. Refer to the 

SAP Business process section for details of the P2P. The P2P process involves 

various steps depending on configuration and the SAP modules implemented. 

Out of all the steps involved in the P2P process, these three steps are components 

of the three-way match: 

n 

n 

n 

Creation of PO (T-code ME21N) 

Goods receipt (T-code MIGO) 

LIS invoice receipts (T-code MIRO)

7.8 P2P 277 

1. After sorting the list of vendors, the purchase department will create a purchase 

order through transaction code ME21N. In this step, there is no accounting 

impact, but in Controlling (CO), the PO will create a commitment posting 

if you have activated commitment management. This commitment item will 

be converted into an actual posting once you have received material. 

2. Once you have received goods, the goods receiving clerk will enter the goods 

receipts into the SAP system through transaction code MIGO. While posting 

the goods receipt, the system will check quantity, goods, and price against 

the PO. If you have partial goods against a PO, the goods receiving clerk will 

modify the quantity, which will leave the PO open until the next goods receipt. 

The G/L is automatically updated with postings made to the G/L, cost centers, 

or asset accounts, while an offsetting posting will be made to a new general 

account called the GR/IR account. The accounting will be as follows: 

Expenses Accounts 

Inventory 

Assets 

GR\IR 

Debit 

Debit 

Debit 

Credit 

3. The accounting department will receive an invoice from the vendor. Invoice 

verification is the last step in the three-way match. While posting the invoice, 

the system will check goods receipts for quantity and price with PO. The 

following entry is posted once you save the invoice: 

GR/IR 

Vendor 

Debit 

Credit 

7.8 P2P 

An organization sells goods and services. To sell goods and services, naturally, it 

will have to procure these goods and services or produce them. The procurement 

part of goods and services is handled by the purchasing department of an 

organization. Although the procurement process starts with the purchase 

department, it flows to various departments and ultimately ends with a payment


to the vendor. In SAP solutions, the P2P cycle may be simple or complex, 

depending on the modules implemented and the client’s business process. The 

following shows how the P2P process can be viewed using different modules. 

n 

n 

P2P process with FICO module: When you are only working 

with the FICO module, the P2P process is pretty simple. In this 

case, the recording of goods movement will be taken care of 

outside of the SAP solution. 

n 

n 

Vendor invoice posting 

Payment to vendor 

P2P process with FICO and MM modules: 

n 

n 

n 

n 

n 

Source determination 

Purchase order 

Goods receipt 

Invoice verification 

Payment to vendor 

7.9 VENDOR DOWN PAYMENT AND CLEARING 

“Down payment” is the term used when you are entering into agreement with 

your vendor to purchase an expensive item or capital assets. It means an upfront 

payment to the vendor before delivery of goods and services, and is also called 

an “advance payment.” According to the accrual concept, a down payment or 

advance payment is not a liability but rather an asset. Since the down payment is 

treated as an asset for your financial statement, it cannot be mixed with normal 

transactions with vendors. In SAP solutions, a down payment is treated as a 

special G/L transaction. Down payment transactions are shown and recorded 

in a different reconciliation (control) account called an alternative reconciliation 

account. As per SAP standards, a vendor down payment process involves the 

following steps: 

1. Down payment request (T-code F-37) 

2. Down payment (T-code F-29 or F110) 

3. Invoice (T-code FB70) 

4. Down payment clearing (T-code F-39)

7.10 ORDER TO CASH (OTC) 279 

The down payment request is an optional step, but the advantage of this step 

is that you can make payment to your vendor through an automatic payment 

program. 

FIGURE 7.5 Down payment processing 

When clearing the down payment, the system will do a transfer posting from 

the alternative reconciliation account to the normal reconciliation account. For 

this automatic account determination, you need to configure the vendor down 

payment through transaction code OBYR. 

7.10 ORDER TO CASH (OTC) 

The order to cash (OTC) process covers all to the steps related to placing an order 

from customer purchase order to cash collection from the customer. During this 

process, the user has to go through various steps for successful processing of a 

business transaction. Before delivering material to a customer, the company has 

to check the customer’s credit and the availability of the material. This process


involves the SD, MM, and FICO modules. Generally, the following steps are 

involved in a typical situation: 

n 

n 

n 

n 

n 

n 

n 

n 

n 

n 

Sales quotation 

Standard order 

Shipping 

Delivery 

Picking 

Posting goods issue 

Warehouse picking execution 

Packing 

Billing: Using transaction code VF01, the SD user will create a 

billing document, which will trigger an FI document to record 

the FI transaction. 

Payment of customer: This is a FI process. Through various FI 

transaction codes, you can record incoming payments. 

7.11 MAKE TO ORDER 

Sometimes a customer requests a specific product that is not a generally 

available product line of your vendor. This circumstance requires the make to 

order process. 

Make to order is initiated after receiving a customer order. The sales 

department receives the customer’s make to order and passes the sales order to 

the material department, as well as the purchasing department, which checks 

for the required materials. The material requirement analysis is carried out 

through the SAP solution. In the material requisition planning (MRP) run, the 

SAP software explodes the Bills of Material (BOM) for all levels. If the required 

materials are not available, the MRP will create planned orders. 

Planned orders for materials produced in-house will be converted into 

production orders, while planned orders for materials procured from outside 

will be converted into purchase orders. 

The availability of material produced in-house and procured from outside 

will be decided through the replenishment time mentioned in the material 

master. In the case of in-house produced goods, the route time will take 

precedence over the replenish date mentioned in the material master.

7.12 SUMMARIZATION LEVELS IN CO-PA 281 

The cycle of made to order is as follows: 

n 

n 

n 

n 

n 

n 

n 

n 

Create material for make to order 

Route creation 

Create BOM 

Sales order 

Production order 

Recording of finished goods 

Delivery against sales order 

Invoicing 

7.12 SUMMARIZATION LEVELS IN CO-PA 

To satisfy various business needs, CO-PA deals with large data to produce 

segment reports, i.e., reports based on customer hierarchy, product group, or 

geographical location. Due to the large volume of data handling, the user may 

question system performance. To increase response time, the SAP R/3 system 

provides a summarization concept in CO-PA. 

Summarization means the system aggregates data based on required 

segments and stores the data in a different set of tables. Since the system holds 

data in summary form in different tables, it provides quick access to the user. 

When the user runs a particular CO-PA report, the system looks for the 

most suitable summarization table instead of the CE1XXXX table (where XXXX 

is the operating concern name). 

In the absence of the summarization level, the system always looks for 

CE3XXXX and CE4XXXX tables for each and every run. A summarization level 

stores the original dataset in a reduced form. 

From a technical point of view, a summarization consists of two tables 

that have just been generated, the key table and the totals table. The key table 

corresponds to the segment table and contains the pseudosegments produced 

from the reduced characteristics. The totals table corresponds to the segment 

level and contains the associated value fields. 

Figure 7.6 shows the summarization levels. From top to bottom, it goes 

from more specific segments to less specific segments.


FIGURE 7.6 Summarization levels 

In the absence of the summarization level, the SAP R/3 system will return 

the following types of warnings shown in Figures 7.7 and 7.8: 

FIGURE 7.7 CO-PA reporting error

7.12 SUMMARIZATION LEVELS IN CO-PA 283 

FIGURE 7.8 CO-PA reporting error 

To avoid these messages and increase system performance, you have to 

build a summarization level following these steps: 

1. Create Automatic Proposal for Summarization Levels (T-code 

KEDVP) : In this step, the data system will propose new summarization 

levels according to CO-PA usage. SAP R/3 allows you to create up to 5,000 

summarization levels. 

2. Define/Change Summarization Levels (T-code KEDV) : Once 

summarization levels are proposed, you can change the attributes of the 

summarization level in this step. The summarization level status will be 

active without data. 

3. Build Summarization Levels (T-code KEDU) : Once you build your 

summarization level, you need to populate it with data. The summarization 

level holds historical data; to use it properly, you need to execute this 

transaction at the proper interval to populate the summarization level with 

recent data.

Chapter 8 

N EW G/L 

To satisfy a broader range of internal and external requirements, the mySAP 

ERP application combines all general ledger functionality under one roof. 

mySAP ERP also streamlines various functions of earlier versions, which 

makes reporting easier and meets all internal and external reporting requirements. 

Now New G/L provides a unified structure for cost of sales accounting, profit 

center accounting (PCA), and segment reporting. The New G/L ledger has the 

following advantages: 

n Accelerates period-end processing 

n Makes reporting easier by providing real-time reconciliation 

between FI and CO 

n Lets an entity report in multiple ways by providing multiple 

ledgers within G/L accounting 

n Has an extended data structure so the customer can add new 

fields to standard tables 

Refer to OSS: 756146 for a more complete list of advantages. 

mySAP combines the following features of older versions into the New G/L 

concept: 

n General ledger (G/L) 

n PCA 

n Reconciliation ledger 

n Special-purpose ledger (SPL) 

n Business area 

n Cost of sales accounting 

285

286 CHAPTER 8 NEW G/L 

FIGURE 8.1 Comparing R/3 Enterprise and mySAP ERP 

Implementation of New G/L is compulsory for newer customers and 

optional for existing SAP customers. If existing customers want to use this 

functionality, they can activate it by using transaction code FAGL_ACTIVATION. 

New G/L activation is client specific, not company code specific. After activation 

of New G/L, you will find some new paths for New G/L, in addition to the old 

paths. See Figure 8.2. 

FIGURE 8.2 New G/L menus

CHAPTER 8 NEW G/L 287 

After activating New G/L, you will have two views for document display: 

(1) Data Entry View and (2) General Ledger View as shown in figures 8.3 

and 8.4. 

FIGURE 8.3 Data Entry View 

FIGURE 8.4 General Ledger View 

Since New G/L substitutes FI_SPL, it comes with leading and nonleading 

ledger concepts. For the time being, think of leading ledgers as your G/L 

and non-leading ledgers as your FI_SPL. Table 8.1 points out the differences 

between leading ledgers and nonleading ledgers.

288 CHAPTER 8 NEW G/L 

Leading Ledger 

Nonleading Ledger 

Existence Required Optional 

Transaction 

Posting 

All FI transactions will be updated 

May or may not be posted with 

all FI transactions 

Currencies Takes currencies from company code Can maintain currencies different 

from company code 

Fiscal Year Same as company code Can be different from company 

code 

Accounting 

Principle 

Number of 

ledgers 

Follow basic accounting principle 

One leading ledger for a given company 

code 

May follow different accounting 

principle 

May have zero or more 

TABLE 8.1 Leading ledger versus nonleading ledger 

mySAP comes with a brand-new table (FAGLFLEXT) that contains 

additional fields. The FSGLFEXT table thus supports the following 

activities: 

n Segment reporting 

n Profit center updating 

n Cost of sales accounting 

n Cost center updating 

n Preparation for consolidation 

n Business-area updating 

You can add new fields to this table to capture different scenarios. 

8.1 DOCUMENT SPLITTING 

The main functionality of New G/L is document splitting. You use document 

splitting to capture additional missing accounting assignments by which each and 

every document is balanced individually. As an example, say you are entering a

8.2 TRANSACTION CODES 289 

cost center while posting an expense. From the cost center, expenses are posted 

to the profit center. Is the payable also assigned to the profit center? The answer 

is “No” if you are using an old version of SAP software, but it is “Yes” if you are 

using mySAP. If document splitting is active in mySAP, the system will transfer 

the profit center from expense line items to payable line items. 

There are three types of document splitting: (1) active (rule-based) split, 

(2) passive split, and (3) clearing lines/zero balance formation by balancing 

dimensions. 

1. Active split: This is a configuration step in which the system will split the 

document. Active splitting is applicable for original entries, i.e., vendor 

invoice posting and customer invoice posting. 

2. Passive split: This is the default setting. Passive splitting is applicable for 

subsequent transactions, i.e., clearing of vendor invoice with payment, etc. 

3. Clearing lines/zero balance formation by balancing char. (and document): 

This occurs when a transfer is made between two segments. 

8.2 TRANSACTION CODES 

mySAP ERP comes with several new transaction codes that replace existing 

transaction codes: 

n FAGLB03: Display Balances (New); replaces FS10N 

n FAGLL03: Display Line Items (New); replaces FBL3N 

n FB50L/FB01L: G/L Document Posting for a Ledger Group; 

replaces FB50/FB01 

n FAGL_FC_VAL: Foreign Currency Valuation (New); replaces F.05 

n FAGLF101: Sorting/Reclassification (New); replaces F101 

n FAGLGVTR: Balance Carry-forward (New), replaces F.16, 

GVTR, and 2KES

Chapter 9 

TABLES IN THE 

SAP SYSTEM 

Whenever you enter data in a screen, the data is stored in a table. Sometimes 

there may be more than one table linked to a particular screen. As a FICO 

functional consultant, you should be aware of important tables in the SAP 

software and their data structure. You can use transaction code SE11 to see the 

field structure of a table. By invoking transaction code SE16 or SE16N, you can 

browse the data in a particular table. 

The tables provided in this chapter 


The following is an important SAP table for FI enterprise structure: 

Table 

T001 

T005 

TCURC 

TCURR 

TCURT 

T077S 

T009 

T880 

T014 

Description 

Company code 

Countries 

Currency codes 

Exchange rate 

Currency name 

Account group (G/L accounts) 

Fiscal year variants 

Global company data 

Credit control area 

TABLE 9.1 FI-G/L tables 

Continued 

291

292 CHAPTER 9 TABLES IN THE SAP SYSTEM 

Table 

T004 

T077S 

T009 

T880 

T014 

T010O 

T010P 

T001B 

T003 

T012 

Description 

Chart of accounts (COA) 

Account group (G/L accounts) 

Fiscal year variants 

Global company data 

Credit control area 

Posting period variant 

Posting period variant names 

Permitted posting periods 

Document types 

House banks 


9.2 GENERAL LEDGER ACCOUNTING (FI-G/L) 

The following is an important SAP table for FI G/L Accounting: 

Table 

SKA1 

SKB1 

BNKA 

BKPF 

Description 

G/L master—Chart of accounts 

segment 

G/L master—Company code 

segment 

Bank master record 

Accounting documents header 

Continued

9.3 ACCOUNTS RECEIVABLE (FI-AR) 293 

Table 

BSEG 

BNKA 

BSAD 

BSAK 

BSAS 

Description 

Accounting documents item level 

Bank master record 

Accounting: Index for customers 

(cleared items) 

Accounting: Index for vendors 

(cleared items) 

Accounting: Index for G/L 

accounts (cleared items) 



The following is an important SAP table for FI Accounts Receivable: 

Table 

KNA1 

KNB1 

KNVV 

KNBK 

KNVH 

KNVP 

KNVS 

KNVK 

KNVI 

Description 

Customer master—General 

data 

Customer master—Company 

code data 

Customer master—Sales data 

Bank details 

Customer hierarchy 

Customer partners 

Shipment data for customer 

Contact persons 

Customer master tax indicator 

TABLE 9.3 FI-AR tables



The following is an important SAP table for FI Accounts Payable: 

Table 

LFA1 

LFB1 

LFM1 

LFM2 

LFB5 

LFBK 

Description 

Vendor master—General data 

Vendor master—Company code 

data 

Purchasing organization data 

Purchasing data 

Vendor dunning data 

Bank details 

TABLE 9.4 FI-AP tables 

9.5 ASSETS MANAGEMENT (FI-AA) 

The following is an important SAP table for FI Assets Management: 

Table 

ANKA 

ANKT 

ANLU 

ANLZ 

ANEK 

ANEP 

ANKB 

Description 

Asset classes: General data 

Asset classes: Description 

Asset master record user fields 

Time-dependent asset 

allocations 

Document header asset posting 

Asset line items 

Asset classes: Depreciation area 

TABLE 9.5 FI-AA tables

9.7 COST CENTER ACCOUNTING (CO-CCA) 295 

9.6 GENERAL (CO) 

The following is an important SAP table for Controlling: 

Table 

TKA01 

TKA02 

KEKO 

KEPH 

KALO 

KANZ 

Description 

Controlling (CO) areas 

CO area assignment 

Product costing header 

Cost components for cost of 

goods manufacturing 

Sales order items—costing 

objects 

Accounting: Index for G/L 

accounts (cleared items) 

TABLE 9.6 CO tables 


The following is an important SAP table for CO Cost Center Accounting: 

Table 

CSKS 

CSKT 

CRCO 

COSP 

COEP 

COBK 

COST 

Description 

Cost center master data 

Cost center texts 

Assignment of work center to 

cost center 

CO object: Cost totals for 

external postings 

CO object: Line items (by 

period) 

CO object: Document header 

CO object: Price totals 

TABLE 9.7 CO-CCA tables



The following is an important SAP table for CO Profit Center Accounting: 

Table 

CEPC 

CEPCT 

GLPCA 

GLPCC 

GLPCO 

GLPCP 

Description 

Profit center master data table 

Texts for profit center master 

data 

EC-PCA: Actual line items 

EC-PCA: Transaction attributes 

EC-PCA: Object table for 

account 

EC-PCA: Plan line items 

TABLE 9.8 CO-PCA tables 


The following is an important SAP table for CO Profitability Analysis: 

Table 

CE1XXXX 

CE2XXXX 

CE3XXXX 

CE4XXXX 

Description 

CO-PA—Actual line items (where 

XXXX represents operating 

concern) 

CO-PA—Plan line items 

Total records—make time-based 

classification possible 

PA segment definition: higher 

level table used to assign segment 

number to each combination of 

characteristic values 

TABLE 9.9 CO-PA tables

Chapter 

10 

SAP MM 

CONFIGURATION 

The Material Management (MM) module is integrated with the SD, PP, QM, 

WM, FI, and CO modules. The MM module is part of the logistic menu in 

SAP software. The MM module takes care of inventory management and the 

procurement process. 

Along with other master data, this module controls two main data masters, 

i.e., vendor master and material master. 

Similar to the FI and CO modules, you will maintain the organizational 

hierarchy while implementing the MM module. This chapter provides an 

overview of the MM module and describes the minimum configuration steps. 

As a FICO functional consultant, it is necessary that you understand MM 

flow if you are working in an implementation site where MM is part of the 

implementation. 

Client 

Company Code 

Company Code 

Plant 

Plant 

Plant 

Storage 

Location 

Storage 

Location 

Storage 

Location 

Storage 

Location 

FIGURE 10.1 SAP MM organizational structure 

297

298 CHAPTER 10 SAP MM CONFIGURATION 

Figure 10.1 shows a straightforward MM organizational structure. 

Depending upon client requirements, your MM organization may be simple 

or complex. Note that this chapter describes configuration steps for a simple 

MM module. 

In Figure 10.1, observe that the MM module is dependent on the company 

code, which is the highest organizational entity in FI. FICO configuration is 

not discussed here, so before configuring MM, make sure that FI and CO 

configuration have already taken place. 

Description and Path 

1 Define, Copy, Delete, Check Plant: SPRO → Enterprise 

Structure → Definition → Logistics (General) → Define, 

Copy, Delete, Check Plant 

2 Maintain Storage Location: SPRO → Enterprise 

Structure → Definition → Materials Management → 

Maintain Storage Location 

3 Maintain Purchase Organization: SPRO → Enterprise 

Structure → Definition → Materials Management → 

Maintain Purchase Organization 

4 Assign Plant to Company Code: SPRO → Enterprise 

Structure → Assignment → Logistics (General) → Assign 

Plant to Company Code 

5 Assign Purchasing Organization to Company Code: 

SPRO → Enterprise Structure → Assignment → Materials 

Management → Assign Purchasing Organization to 

Company Code 

6 Assign Purchasing Organization to Plant: SPRO → 

Enterprise Structure → Assignment → Materials 

Management → Assign Purchasing Organization 

to Plant 

7 Define Industry Sectors and industry sector-specific 

field section: SPRO → Logistics (General) → Material 

Master → Field Selection → Define Industry Sectors and 

industry sector-specific field section 

T-code 

OX10 

OX09 

OX08 

SPRO 

OX18 

OX01 

SPRO 

Continued

CHAPTER 10 SAP MM CONFIGURATION 299 


8 Define Attributes of Material Type: SPRO → Logistics 

(General) → Material Master → Basic Settings → 

Material Types → Define Attributes of Material Type 

9 Define Number Ranges for Each Material Type: 

SPRO → Logistics (General) → Material Master → Basic 

Settings → Material Types → Define number ranges for 

each material type 

10 Maintain Company Codes for Material Master: 

SPRO → Logistics (General) → Material Master → Basic 

Settings → Material Types → Maintain Company Codes 

for Material Master 

11 Set Tolerance Limit for Price Variance: SPRO → Materials 

Management → Purchasing → Purchase Order → Set 

Tolerance Limit for Price Variance 

12 Set Tolerance Limits: SPRO → Materials Management → 

Logistics Invoice Verification → Invoice Block → Set 

tolerance limits 

13 Group Together Valuation Areas: SPRO → Materials 

Management → Valuation and Account Assignment → 

Account Determination without Wizard → Group 

Together Valuation Areas 

14 Configure Automatic Posting: SPRO → Materials 

Management → Valuation and Account Assignment → 

Account Determination without Wizard → Configure 

Automatic Posting 

T-code 

SPRO 

SPRO 

OMSY 

SPRO 

SPRO 

SPRO 

SPRO 

TABLE 10.1 MM configuration steps

Chapter 

11 

SAP SD 

CONFIGURATION 

The Sales and Distribution (SD) module is part of a logistic module that supports 

customers starting from accepting a quotation from the customer until billing 

the customer for products or services sold. This module is tightly integrated 

with other modules like MM, PP, FI, etc. 

Figure 11.1 shows a simple SD business process, where the SD, MM, and 

FI modules are involved. In a complex business process, other SAP modules 

are involved and integrated with the SD module to carry out the sales cycle. 

Customer Order 

Picking 

Goods Issue 

Final Payment Accounts Receivable Billing 

FIGURE 11.1 SD business process 

301

302 CHAPTER 11 SAP SD CONFIGURATION 

Table 11.1 lists simple SD configuration steps. 


1 IMG → Enterprise Structure → Definition → Sales 

and Distribution → Define, copy, delete, check Sales 

organization → Define Sales Organization 

2 IMG → Enterprise Structure → Definition → Sales and 

Distribution → Define, copy, delete, check distribution 

channel → Define Distribution Channel 

3 IMG → Enterprise Structure → Assignment → Sales and 

Distribution → Assign sales organization to company code 


Distribution → Assign distribution channel to sales 

organization 

5 IMG → Enterprise Structure → Definition → Logistics– 

General → Define, copy, delete, check division 


Distribution → Assign division to sales organization 


Distribution → Set up sales area 


Distribution → Assign sales organization → Distribution 

channel → Plant 

9 IMG → Enterprise Structure → Definition → Logistics 

Execution → Define, copy, delete, check shipping point 

10 IMG → Enterprise Structure → Assignment → Logistics 

Execution → Assign shipping point to plant 

11 IMG → Sales and Distribution → Master Data → Define 

Common Distribution Channels 

12 IMG → Sales and Distribution → Master Data → Define 

Common Divisions 

T-code 

SPRO 

SPRO 

OVX3 

OVXK 

SPRO 

OVXA 

OVXA 

OVXG 

SPRO 

OVXC 

VOR1 

VOR2 

Continued

CHAPTER 11 SAP SD CONFIGURATION 303 


13 IMG → Sales and Distribution → Basic 

Functions → Pricing → Pricing Control → Define 

Condition Tables 


Functions → Pricing → Pricing Control → Define 

Condition Types 


Functions → Pricing → Pricing Control → Define Access 

Sequences 


Functions → Pricing → Pricing Control → Define And 

Assign Pricing Procedures 

17 IMG → Sales and Distribution → Sales → Sales 

Documents → Sales Document Header → Define Sales 

Document Types 


Documents → Sales Document Header → Define 

Number Ranges For Sales Documents 


Documents → Sales Document Header → Assign Sales 

Area To Sales Document Types 


Documents → Sales Document Item → Define Item 

Categories 


Documents → Sales Document Item → Assign Item 

Categories 


Documents → Schedule Lines → Define Schedule Line 

Categories 

T-code 

V/03 

SPRO 

SPRO 

SPRO 

VOV8 

VN01 

SPRO 

SPRO 

SPRO 

VOV6 

TABLE 11.1 SD configuration steps 

Continued

304 CHAPTER 11 SAP SD CONFIGURATION 



Documents → Schedule Lines → Assign Schedule Line 

Categories 

T-code 

SPRO 

TABLE 11.1 SD configuration steps

I NDEX 

A 

AAM (Account Assignment Model), 

25–26 

ABAP (Advanced Business Application 

Programming), 110 

ABAP programs, 91–92 

ABC (activity-based costing), 68 

access sequences, 88 

Account Assignment Model (AAM), 

25–26 

“Account currency” option, 26 

account-based Profitability Analysis, 

85–86 

accounts 

groups of, 21, 101 

IDs for, 38 

types of, 118 

Accounts Payable (FI-AP) 

alternative payees in, 51–52 

automatic payment programs in, 

45–50 

bills of exchange discounting in, 141 

“changes for vendor not confirmed” 

error in, 140–141 

check printing in, 141–142 

clearing two General Ledgers in, 51 

configuring, 163–168 

discount bases in, 137 

document types in, 48 

due date calculation in, 44–45 

GR/IR accounts in, 47 

house banks in, 50 

issues and resolutions in, 135–143 

journal entries from receipt of goods 

to vendor payment, 46–47 

linking customers and vendors in, 50 

multiple customers and vendors in, 143 

multiple payments in, 142–143 

number ranges on vendor accounts 

in, 52 

petty expenses in, 140 

posting multiple customers in, 143 

quick tour of, 240–247 

reference fields in, 51 

sensitive fields in, 49 

spoiled or torn checks in, 135 

tables in, 135–136, 294 

TDS in, 137–138 

updating payment documents with 

check numbers in, 138–139 

user transaction codes in, 192–198 

vendor down payments in, 139 

vendor masters in, 48–49, 52 

vendors requesting separate bank 

accounts in, 136–137 

withholding taxes in, 46–47, 137–138 

305

306 INDEX 

Accounts Receivable (FI-AR) 

bank type in, 54 

certification questions on, 108 


dunning in, 52–53 


subledgers in, 54 

tables in, 293 


vendor masters, bank types in, 54 

accrual, 66 

acquisition and production costs 

(APCs), 60 

activity dependent vs. activity 

independent costs, 78–79 

activity types, 71, 74 

activity-based costing (ABC), 68 

Advanced Business Application 

Programming (ABAP), 110 

ALE (application linking and 

enabling), 93 

allocation structures, 72 

alternative account numbers, 132–133 

alternative payees, 51–52 

alternative profit center hierarchies, 117 

APCs (acquisition and production 

costs), 60 

application in SAP environments, 11 

application linking and enabling 

(ALE), 93 

ASAP Roadmap, 1–2 

assessment, 72, 74 

Asset Accounting (FI-AA) 

acquiring assets in, 59–60, 64 

asset classes in, 55, 58 

chart of accounts vs. depreciation, 64 

company code in, 56–57 


depreciation in, 54–57, 61, 63–65 

history sheets in, 62 

masters in, 55–56, 64 

multiple assets in, 58–59 

organization structure in, 60 

periodic processing in, 62–63 

posting periods in, 63 

preparing for production startup in, 62 


retiring assets in, 59–60 

sub asset masters in, 55–56 


T-code AS01 in, 56 

uploading assets in, 56 

Asset Accounting in FICO, 10 

Assets Management 

asset masters in, 148 

capitalizing assets in, 146–147, 154 

creating assets in, 147 

data migration in, 143 

depreciable bases in, 153 

depreciation, calculating, 151–152 

depreciation adjustments in, 149 

depreciation areas in, 148, 154–155 

Depreciation Areas pop-up screen 

in, 152 

depreciation keys in, 147, 149, 151 

depreciation runs in, 144, 145–146, 

149–150 

depreciation start dates in, 154 


JPG attachments in, 150 

parallel currencies in, 154–155 

posting in fiscal years through, 145 

purchases made during closed fiscal 

years, 150–151

INDEX 307 

retiring assets in, 148 

SD module and sale of assets in, 146 

transferring assets between classes, 

143–144 

unplanned depreciation in, 148 

user transaction codes in, 143–155, 

205–209 

warranty information in, 152–153 

year closings in, 147 

year-end closing process in, 144 

Assignment field, 15 

automatic payment programs 

advance vendor payments in, 50 

certification questions on, 104–105, 

111–113 


in FICO, 275–276 

in General Ledger accounting, 

134–135 

running, 49 

spoiled or torn checks in, 135 

testing, 48–49 

vendors requesting separate bank 

accounts in, 136–137 

automating T-code reversal 

procedures, 132 

availability control, 83 

B 

Bank Accounting (FI-BL), 171–174 

bank accounts, 25 

bank IDs, 38 

bank keys, 38 

bank reconciliations, 269–271 

bank types, 54 

baseline dates, 33–34, 97 

batch data conversion (BDC) sessions, 8 

bills of exchange discounting, 141 

blocking, 103 

budgets, 82–84 

business areas 

certification questions on, 99, 

108–110 

in Enterprise Structure, 22 

in General Ledger accounting, 35, 132 

profit centers vs., 68 

Business Blueprint phase, 1 

Business One, 9–10 

Business Workflow, 91–92 

C 

capitalizing assets, 146–147, 154 

cash journals (CJs) 

configuring cash discount terms in, 40 

defined, 39 

in General Ledger accounting, 39–41 

held documents in, 40 

multiple, 40–41 

parked documents in, 40 

reversing cleared documents in, 40 

catch-up method for distributing 

depreciation, 63 

certification answers, 123–126 

certification questions 

on ABAP, 110 

on accounts, 101, 102, 118 

on Accounts Receivable vs. Accounts 

Payable, 108 

on alternative profit center 

hierarchies, 117 

on automatic payment programs, 

104–105, 111–113

308 INDEX 

on baseline dates, 97 

on blocking, 103 

on business areas, 99, 108–110 

on clearing documents, 97 

on company codes, 108–110, 

116–117, 122 

on configuration menus, 110 

on controlling areas, 116 

on Controlling modules, 120 

on costing-based CO-PA tables, 116 

on credit control areas, 117 

on cross-company document 

numbers, 107 

on currencies, 98–99, 107, 121 

on customer masters, 101–104, 119 

on data types in SAP, 110 

on database servers, 98 

on depreciation, 106 

on documents, 96, 102, 111, 119–121 

on doubtful receivables, 114 

on down payment requests, 98, 107 

on dunning, 105–106, 108, 114 

on duplicate vendors, 96 

on employee tolerance, 98, 119 

on FI documents, 118 

on field status groups, 100, 104, 122 

on financial statement versions, 106 

on fiscal years, 99, 118, 121 

on foreign currency valuation, 114 

on G/L accounts, 95, 100–103, 

117, 122 

on G/L masters, 95–96, 101 

on GR/IR clearing, 111 

on house bank IDs, 102, 120 

on leading and nonleading ledgers, 118 

on line item management, 121 

on line layout, 108 

on logons screens, 109 

on message bars, 109 

on multiple company codes, 95, 97 

on mySAP ERP, 104, 116 

on negative reversals, 119 

on number ranges, 101 

on one-time vendor master 

records, 103 

on open item managed accounts, 121 

on opening multiple sessions, 98 

on operating charts of accounts, 

100–101 

on parked documents, 110–111, 120 

on payment runs, 105, 113 

on period ranges, 97 

on posting FI documents, 106–107 

on posting keys, 96, 119, 120 

on posting periods, 97, 123 

on posting to vendors, 120, 123 

on purchase orders, 118 

on purchase organizations, 116 

on reconciliation, 98, 101, 122 

on retained earnings accounts, 99, 100 

on reversal documents, 107 

on sample accounts, 102 

on SAP R/3, 98, 108–109, 

111–113, 122 

on saving open sessions, 110 

on SD billing documents, 117 

on selection variants, 116 

on shortened fiscal years, 99 

on special G/L transactions, 107, 123 

on statistical order, 117 

on taxes, 121–123 

on validation checks, 122 

on vendor masters, 101–103, 107, 

119–120

INDEX 309 

“changes for vendor not confirmed” 

error, 140–141 

characteristics, 84–85 

charts of accounts (COAs) 

assigning, 13–14 

charts of depreciation vs., 64 

copying, 12 


in General Ledger accounting, 27, 

30–31 

check printing, 141–142 

CJs (cash journals). See cash journals (CJs) 

clearing documents, 97 

clearing General Ledgers, 51 

clients, 5–6 

CO (Controlling Area), 12, 65–66, 177. 

See also Controlling module (CO) 

CO (Controlling module). See 

Controlling module (CO) 

COAs (charts of accounts). See charts of 

accounts (COAs) 

CO-CCA (Cost Center Accounting). 

See Cost Center Accounting 

(CO-CCA) 

CO-CEL (Cost Element Accounting), 

69–70 

CO-IO (Internal Order). See Internal 

Order (CO-IO) 

Company, 15–17 

company codes 

in assets organization structure, 60–61 

on automatic payment programs, 45 

business areas in, 22–23 


116, 117 

controlling areas and, 65, 110 

depreciation areas in, 56 


in FI structure, 15 

in General Ledger accounting, 27, 30 

G/L accounts in, 122 

global settings, 18–19 

as organizational unit, 12 

in sales and distribution, 87 

vendors in, 127–128 

condition techniques, 88 

configurable materials, 90 

configuration 

of Accounts Payable, 163–168 

of Accounts Receivable, 168–170 

of Assets Accounting, 174–177 

of Bank Accounting, 171–174 

of cash discount terms, 40 

of Controlling Area, 177 

of Cost Center Accounting, 177–179 

of Enterprise Structure, 159–161 

of General Ledger accounting, 

161–163 

of Internal Order, 179–180 

menus, 110 

overview of, 159 

of Product Costing, 183–185 

of Profit Center Accounting, 181 

of Profitability Analysis, 182–183 

requests, 5–6 

in SAP generally, 11, 159 

consignment stocks, 89 

consolidation, 17 

contracts vs. scheduling agreements, 90 

Controlling Area (CO), 65–66, 116, 177 

Controlling module (CO) 

accrual in, 66 

activity-based costing in, 68 

business areas vs. profit centers in, 68

310 INDEX 


components of, 67 

controlling area in, 65 

copying, 12 

FI module vs., 68–69 

imputed cost calculations in, 78 

managerial vs. financial accounting, 66 

overhead costs in, 67 

PCA in, 68 

periodic allocations to, 77 

primary costs posted to, 69 


submodules in, 67 


term cost objects in, 67 

transaction-based postings to, 77 

work breakdown structures and, 68–69 

CO-PA (Profitability Analysis). See 

Profitability Analysis (CO-PC) 

CO-PC (Product Costing). See Product 

Cost Accounting (CO-PC) 

CO-PCA (Profit Center Accounting). 

See Profit Center Accounting 

(CO-PCA) 

copying charts of accounts (COAs), 12 

correcting vs. reversing documents, 156 

Cost and Revenue Element Accounting, 

11, 80 

Cost Center Accounting (CO-CCA) 

information systems in, 217 

maintenance of master data in, 

211–214 


transaction codes in, 177–179 

transactions in, 214–217 

Cost Center Accounting (FI-CCA) 

activity types in, 71, 74 

activity-dependent vs. independent 

costs in, 78–79 

allocation structures in, 72 

assessment in, 72–74 

correcting vs. reversing documents 

in, 156 

cost centers in, 73–75 

cycles in, 75–76 

depreciation expenses in, 75 

direct internal activity allocations in, 

77–78 

distribution in, 72, 155–156 

imputed cost calculations in, 78 

Internal Order vs., 73 

iterative vs. cumulative cycle processing 

in, 77–78 

periodic allocations in, 77 


reconciliation ledgers in, 78 

reposting in, 71–73 

segments in, 75–76 

selecting statistical objects and, 66 

sender vs. receiver cost elements and 

centers, 71 

standard hierarchy in, 72–73 

statistical key figures in, 71, 73, 74 

transaction-based postings in, 77 

variance analysis in, 77 

cost centers vs. profit centers, 79 

Cost Element Accounting (CO-CEL) 

as CO submodule, 67 

interview questions on, 69–70 

quick tour of, 254 


costing-based CO-PA tables, 116 

country charts of accounts (COAs), 22 

credit control areas, 15, 87, 117

INDEX 311 

cross-company document numbers, 107 

currencies, 24, 98–99, 107 

currency transaction rates, 121 

custom transaction codes, 9 

customer masters, 101–104, 119 

customizing cash journals, 32–33 

cycles in Cost Center Accounting, 75–76 

D 

data migration, 143 

data types, 12, 110 

database servers, 98 

depreciable bases, 153 

depreciation 

adjustments, 149 

areas. See depreciation areas 

calculating, 151–152 

catch-up method for distributing, 63 


expense allocation, 75 

keys. See depreciation keys 

method types, 56 

runs, 144–146, 149–150 

smoothing method for 

distributing, 63 

start dates, 154 

types supported by systems, 63 

depreciation areas 

in assets accounting, 57, 64–65 

in Assets Management, 148, 154–155 

pop-up screen, 152 

depreciation keys 

in assets accounting, 54–55, 65 

in Assets Management, 147, 149, 151 

derivations, characteristic, 85 

derived depreciation areas, 63 

development servers (DEVs), 2 

DEVs (development servers), 2 

direct internal activity allocations, 

77–78 

discount bases, 137 

distribution 

assessment methods vs., 155–156 

in Cost Center Accounting, 72 

of forecast depreciation, 63 

sales and. See sales and 

distribution (SD) 

document identification, 102 

document types 

in Accounts Payable, 48 

certification questions on, 96, 119 


28, 39, 157 

documents 

in Controlling modules, 69 

currency fields in, 41 

dates of, 120 

deleting entries, 35 

line items in, 121 

number ranges in, 111 

numbers of, 102 

splitting, 288–289 

types of. See document types 

doubtful receivables, 114 

down payments, 98, 107, 278–279 

drop-down lists, 127–128 

due date calculations, 44–45 

dummy profit centers, 79, 156 

dunning 

in Accounts Receivable, 52–53 


108, 114 

duplicate vendors, 96

312 INDEX 

E 

Easy Access Menu, 7–8 

employee tolerance, 28–29, 98, 119 

EMU (European Economic and 

Monetary Union), 24 

Enjoy screens, 14–15 

Enterprise IMG, 3 

Enterprise Structure (FI-ES) 

account groups in, 21 

business areas in, 22 

charts of accounts in, 22 

company code in, 17–19 

Company field in, 17 


field status group in, 20 

financial statement versions in, 23 

fiscal year variants in, 16–18, 23 

organizational structure of, 15–16 

participating vs. nonparticipating 

currencies in, 24 

screens of charts of accounts in, 

19–20 

special periods in fiscal year in, 16 

tables in, 291–292 

European Economic and Monetary 

Union (EMU), 24 

external number ranges, 31–32 

F 

FB50, 60, and 70, 14–15, 143 

FI (Financial Information) module 

accrued costs in, 14 

assigning charts of accounts in, 13–14 

CO module vs., 68–69 

Company Code in, 12 

copying company code in, 13 

credit control area in, 15 

documents in, 118 

organizational unit of, 12 


SAP Enjoy screens vs., 14–15 

Sort key and Assignment field in, 15 

submodules of, 12–13 

substitution in, 15 

validation in, 15 

FI-AA (Financial Information- 

Asset Accounting). See Asset 

Accounting (FI-AA) 

FI-AP (Financial Information-Accounts 

Payable). See Accounts Payable 

(FI-AP) 

FI-AR (Financial Information-Accounts 

Receivable). See Accounts 

Receivable (FI-AR) 

FI-BL (Financial Information-Bank 

Accounting), 171–174 

FI-CCA (Financial Information-Cost 

Center Accounting). See Cost 

Center Accounting (FI-CCA) 

FICO 

Accounts Payable in, 240–247 

Accounts Receivable in, 240–247 

Asset Accounting in, 247–252 


275–276 

bank reconciliations in, 269–271 

CO module and, 230 


Controlling Area in, 252–254 

Cost Center Accounting in, 255–256 

Cost Element Accounting in, 254 

FI module and, 230–232 

foreign currencies in, 265–266

INDEX 313 

G/L accounting in, 232–239 

intercompany transactions in, 

266–269 

Internal Order in, 257–258 

lockbox configuration in, 271–272 

made to order in, 280–281 

order to cash in, 279–280 

procedure-to-pay in, 277–278 

Product Cost Controlling in, 263 

Profit Center Accounting in, 261–263 

Profitability Analysis in, 258–261 

revenue recognition in, 273–275 

SAP and, 229–230 

summarization levels in, 281–283 

three-way matches in, 276–277 

vendor down payments and clearing 

in, 278–279 

field status groups (FSGs) 

at company code level, 122 

defined, 20 

in G/L masters, 22, 38, 104 

in posting to G/L accounts, 100 

FI-ES (Financial Information- 

Enterprise Structure). See 

Enterprise Structure (FI-ES) 

FI-MM (Financial Information- Material 

Management). See Material 

Management (FI-MM) 

Fin Stat Versions, 12 

Final Preparation phase, 2 

Financial Information. See FI (Financial 

Information) module 

financial statement versions (FSVs) 


defined, 12, 23–24 


in General Ledger accounting, 30 

fiscal years, 17–18, 118, 121 

FI-SL (Special Ledgers), 13, 34–35, 

41–42 

fixed asset depreciation, 55 

foreign currencies, 114, 265–266 

FSGs (field status groups). See field 

status groups (FSGs) 

FSVs (financial statement versions). 

See financial statement versions 

(FSVs) 

functional specifications, 3 

G 

gap analysis, 9 

general controlling. See Controlling 

module (CO) 

General Ledger accounting (FI-GL) 

Account Assignment Model in, 25–26 

“Account currency” option in, 26 

account IDs in, 38, 100 

account numbers in, 95, 132–133 

accounts groups in, 100 


134–135 

automating T-code reversal 

procedures, 132 

bank accounts in, 25, 100 

banks in, 38 

baseline dates in, 33–34 

business areas in, 35, 132 

cash discount terms in, 40 

cash journals in, 39–41 

changing fields in, 35 

charts of accounts in, 27 

company codes in, 27, 30, 122 

configuring, 161–163

314 INDEX 

controlling number ranges and 

master field status, 117 

cost elements in, 122 

currency types, 24 

customizing cash journals in, 32–33 

deleting document entries in, 35 

document currency fields in, 41 

document types in, 28, 39, 157 

drop-down lists in, 127–128 

employee tolerance groups in, 28–29 

external number ranges in, 31–32 

F-03 screens in, 129 

field status groups in, 38 

FI-MM integration in, 36–38 


held documents in, 40 

identifying documents in, 39 

internal number ranges in, 31–32 

issues and resolutions in, 

128–135, 157 

line items in documents in, 39 

local currency fields in, 41 

masters in, 95–96, 101 

MIGO transactions in, 128 

missing document numbers in, 134 

multiple cash journals in, 40–41 

multiple company codes in charts of 

accounts, 103 

multiple groups in charts of 

accounts, 103 

negative reversals in, 42–43 

New G/L vs. See New G/L (General 

Ledger) 

nonactivated line item displays in, 

129–130 

normal reversals in, 42–43 

noted items in, 43–44 

“Only balances in local crcy” option 

in, 26 

open item clearing transactions in, 

128–129 

open item management in, 24, 

130–131 

parked documents in, 33, 40 

part payments in, 31 

posting in, 27–30, 39, 131 

primary cost elements in, 117 

purchase orders in, 25 


reclassifying accounts in, 133–134 

reconciliation accounts in, 30 

recurring entries in, 25–26 

residual payments in, 31 

reversals in, 42–43 

reversing cleared documents in, 40 

sample documents in, 25–26 

segments of master records in, 30–31 

special G/L transactions in, 34 

special periods in fiscal year in, 27 

special purpose ledgers in, 34–35, 

41–42 

substitutions in, 27 


tolerance groups in, 39 


validations in, 27 

G/L (General Ledger) accounting. 

See General Ledger accounting 

(FI-GL) 

Go-Live & Support phase, 2 

GR/IR (good receipts/invoice receipts), 

47, 111 

group charts of accounts (COAs), 

13–14, 22

INDEX 315 

H 

held documents, 40, 246 

house banks 


defined, 38 

IDs of, 102, 120 

in mySAP Financial, 242 

I 

identifying documents, 39 

IDES (International Demonstration and 

Education System), 11 

IDOCs (intermediate documents), 93 

IMG (image files), 3, 10–11, 41–42 

implementation roadmap, 1–3 

imputed cost calculations, 78 

inquiry vs. quotations, 87 

intercompany transactions, 266–269 

intermediate documents 

(IDOCs), 92 

internal number ranges, 31–32 

Internal Order (CO-IO) 

availability control in, 83 

budgets in, 82–84 


defined, 80 

introduction to, 66 

order type and categories in, 81 

planning profiles in, 82 


reference vs. model orders in, 83 

settlement in, 82–84 

statistical orders in, 84 

status management in, 84 

user transaction codes in, 

217–220 

internal tables, 92 

International Demonstration and 

Education System 

(IDES), 11 

interviews, 1 

invoice receipts in GR/IR, 47, 111 

issues and resolutions 

in Accounts Payable, 135–143 

in Assets Management, 143–155 

in Cost Center Accounting, 

155–156 


128–135, 157 


in Profit Center Accounting, 156 

in SAP generally, 127–128 

item category groups, 88 

iterative vs. cumulative cycle 

processing, 77–78 

J 

journal entries, 46–47 

JPG attachments, 150 

L 

leading and nonleading ledgers, 118 

ledgers. See General Ledger accounting 

(FI-GL); Special Ledgers 

(FI-SL) 

line items, 39, 121 

line layout, 108 

linking customers and vendors, 50 

local currency fields, 41 

lockbox configuration, 271–272 

logons screens, 109

316 INDEX 

M 

made to order, 280–281 

managerial vs. financial accounting, 66 

master data, 12 

Material Management (FI-MM) 

configurable materials in, 90 

consignment stocks in, 89 

contracts vs. scheduling agreements 

in, 90 

integration of, 36–38 

module, 297–299 

purchase requisitions in, 90 

special stocks in, 89 

standard vs. moving average prices in, 

90–91 

materials requirements planning 

(MRP), 89 

menu paths, 7 

message bars, 109 

MIGO transactions, 128 

missing document numbers, 134 

MM (Material Management). See 

Material Management (FI-MM) 

model orders, 83 

moving average prices, 90–91 

MRP (materials requirements 

planning), 89 

multiple assets, 58–59 

multiple cash journals, 40–41 

multiple company codes, 95–97 

multiple payments, 142–143 

mySAP ERP 

automatic payment programs in, 104 


FI module in, 116 

fiscal year variants in, 118 

hold documents in, 246 

New G/L in. See New G/L (General 

Ledger) 

noted items in, 43–44 

parked documents in, 246–247 

reversals in, 42–43 

tracking master changes in, 104 

transactions with business partners 

in, 246 

mySAP Financial 

clearing open items in, 238 


house banks in, 242 

translation ratios in, 235 

variant principle in, 230 

N 

native SQL, 91 

negative reversals, 42–43, 119 

New G/L (General Ledger) 

document splitting in, 288–289 

issues and resolutions in, 157 

overview of, 285–288 

user transaction codes in, 289 

nonactivated line item displays, 129–130 

nonparticipating vs. participating 

currencies, 24 

normal reversals, 42–43 

number ranges, 6–7, 52, 101 

O 

one-time vendor master records, 103 

“Only balances in local crcy” option, 26 

open items, 24, 121, 128–131 

Open SQL vs. native SQL, 91 

opening multiple sessions, 98

INDEX 317 

operating charts of accounts (COAs), 

100–101 

operating concerns, 65 

operational accounts, 13–14 

operational charts of accounts 

(COAs), 22 

order categories, 81 

order to cash (OTC), 279–280 

order type, 81 

organizational structures, 15–16 

organizational units, 12 

overhead costs, 67 

P 

parallel currencies, 154–155 

parked documents 

certification questions on, 

110–111, 120 

in FI modules, 15 


33, 40 

in mySAP ERP, 246–247 

part payments, 31 

participating vs. nonparticipating 

currencies, 24 

payments, 105, 113, 136–137 

PCA (Profit Center Accounting). 

See Profit Center Accounting 

(CO-PCA) 

period ranges, 97 

periodic allocations, 77 

periodic processing, 62–63 

periodic reposting, 71–72 

petty expenses, 140 

planning profiles, 82 

Plant, 12 

POs (purchase orders), 25, 118 

posting 


documents, 15, 106–107 

in fiscal years, 145 

keys, 29–30, 96, 119–120 

multiple customers, 143 

periods, 27–28, 63, 123 

rules, 131 

SAP Enjoy screens vs., 14–15 

variants, 39 

to vendors, 120, 123 

PR (purchase requisitions), 90 

primary cost elements, 68–70 

procedure-to-pay (P2P), 277–278 

Product Cost Accounting (CO-PC) 


costing variants in, 86–87 

module function in, 87 


226–228 

Product Cost Controlling, 263 

production, 6, 60–62 

Profit Center Accounting (CO-PCA) 

configuring, 181 

cost and revenue flow to, 80 

cost centers vs. profit centers 

in, 79 

dummy profit centers in, 79, 156 

issues and resolutions in, 156 

for period-based accounting and 

financial statements, 68 


selecting statistical objects in, 66 


user transaction codes in, 156, 

220–224

318 INDEX 

profit centers, 79 

Profitability Analysis (CO-PC) 

account-based vs. costing-based, 

85–86 

characteristic derivation in, 85 

characteristics in, 84–85 



summarization levels in, 281–283 



224–226 

value fields in, 85 

Project IMG, 3 

Project Preparation phase, 1 

purchase orders (POs), 25, 118 

purchase organizations, 116 

purchase requisitions, 90 

Q 

quality assurance servers (QASs), 2, 6 

quick tour of FICO submodules. 

See FICO 

R 

Realization phase, 1 

reclassifying accounts, 133–134 

reconciliation accounts, 30, 101, 122 

reconciliation ledgers, 78, 98 

recurring entries, 25–26 

reference fields, 51 

Reference IMG, 3 

reference orders vs. model orders, 83 

reposting, 72–73 

residual payments, 31 

resolutions to issues. See issues and 

resolutions 

retained earnings accounts, 99–100 

retiring assets, 148 

revenue flow, 80 

revenue recognition, 273–275 

reversals 

of cleared documents, 40 

of depreciation postings, 61 

documents for, 107 

in General Ledger accounting, 42–43 

roadmap. See ASAP Roadmap 

S 

sales and distribution (SD) 

access sequence in, 88 

in Assets Management, 146 

billing documents, 117 

company codes in, 87 

condition techniques in, 88 


inquiry vs. quotations in, 87 

item category groups in, 88 

module, 301–304 

organizational elements of, 88 

organizations for, 12 

sales organizations, 12 

sample accounts, 102 

sample documents, 25–26 

SAP. See also SAP R/3; SAP solutions 

account types in, 118 

ALE and, 93 

Business One in, 9–10, 276 

Business Workflow in, 91–92 

configuring software. See 

configuration

INDEX 319 

data types in, 110 

depreciation template in, 247 

dunning in, 114 

Easy Access Menu in, 7–8, 187–194, 

225–228 

Enjoy screens in, 14 

FI module in. See FI (Financial 

Information) module 

FICO. See FICO 

IM module in, 90 


MM module in, 297–299 

SD module in, 301–304 


SAP R/3. See also SAP; SAP solutions 

Assets Management transaction codes 

in, 205–209 


CO documents in, 254 

company codes in, 109 

Company field in, 17 


Cost Center Accounting transaction 

codes in, 211–217 

Cost Element Accounting transaction 

codes in, 209–211 


database servers in, 98 

depreciation areas in, 247, 249 

documents in, 111–113 

gap analysis in, 9 

IDOC and, 93 

implementation roadmap for, 1–2 

Internal Order in, 217–220, 257–258 

line items in, 122 

menus in, 109 

moving average prices, 91 

Profit Center Accounting transaction 

codes in, 220–224 

scrap values in, 252 

summarization concept in, 281–283 

systems, 98 

tickets in, 127 

tiers in, 108 

variant principle in, 230 

SAP solutions. See also SAP; SAP R/3 

Accounts Payable in, 135–143 

asset history sheets in, 62 

Assets Management in, 143–155 

bank reconciliations in, 270 

BDC batch sessions in, 3 

budget profiles in, 82–83 

business areas in, 35 


Cost Center Accounting in, 155–156 


currencies in, 24 

data types in, 3 

depreciation adjustments in, 251 

document types in, 28, 39 

down payments in, 278 

FICO in, 229 

field status groups in, 20 

fiscal year variants in, 17 

foreign currencies in, 265 

General Ledger accounting in, 

128–135 

intercompany transactions in, 

267–269 


item category groups in, 88 

life cycle in, 84 

lockbox configuration in, 272 

made to order in, 280

320 INDEX 

mySAP ERP. See mySAP ERP 

New G/L in, 157 

Open SQL and, 91 

P2P cycle in, 278 

payment terms in, 242 

posting keys in, 29–30 

Profit Center Accounting in, 156 

revenue recognition in, 274 

reversal depreciation posting in, 61 

reversals in, 43 

self-defined transaction codes 

in, 3–5 

structures vs., 91–92 

uploading assets in, 56 

vendor masters in, 103 

saving open sessions, 110 

scheduling agreements, 90 

scrap values, 252 

screens of charts of accounts (COAs), 

19–20 

SD (sales and distribution). See sales 

and distribution (SD) 

secondary cost elements, 69–70 

segments, 30–31, 75–76 

selecting statistical objects, 66 

selection variants, 116 

self-defined transaction codes, 3–5 

sender vs. receiver cost elements and 

centers, 71 

sensitive fields, 49 

settlements, 82–84 

shortened fiscal years, 99 

SKFs (statistical key figures), 71–74 

smoothing method for distributing 

depreciation, 63 

Sort key, 15 

special G/L transactions, 34, 107, 123 

Special Ledgers (FI-SL), 13, 34–35, 

41–42 

special periods in fiscal year, 16, 27 

special stocks, 89 

specs (specifications), 3 

spoiled or torn checks, 135 

standard hierarchy, 72–73 

standard vs. moving average prices, 

90–91 

statistical key figures (SKFs), 71–74 

statistical order, 84, 117 

status management, 84 

structures, 92 

sub assets, 55–56, 60–61 

subledgers, 54 

submodules of FICO. See FICO 

substitutions, 15, 27 

summarization levels, 281–283 

system landscape, 2 

T 

“table TO43G missing” error, 

135–136 

tables 


in Accounts Receivable, 293 

in Assets Management, 294 

in Controlling module, 295 

in Cost Center Accounting, 295 

data in, 12 

in Enterprise Structure, 291–292 


292–293 

introduction to, 291

INDEX 321 

in Profit Center Accounting, 296 

in Profitability Analysis, 296 

taxes, 121–123 

TDS (withholding tax), 137–138 

technical questions 

ALE, 93 

IDOC, 92 

internal tables, 92 

Open SQL vs. native SQL, 91 

structures, 92 

transaction code use, 92 

workflows, 91–92 

technical specifications, 3 

term cost objects, 67 

three-way matches, 276–277 

tickets, 127 

tolerance groups, 39 

transaction codes. See also user 

transaction codes 

custom, 9 

fi nding, 8–9 

menu paths and, 7 

self-defined, 3–5 

for tickets, 127 

time span of use of, 92 

in TSTC tables, 9 

transactional data, 12 

transaction-based postings, 77 

transferring assets between classes, 

143–144 

U 

unplanned depreciation, 148 

updating payment documents with 

check numbers, 138–139 

uploading assets, 56 

user transaction codes. See also 

transaction codes 

in Accounts Payable, 192–198 

in Accounts Receivable, 199–204 

in Assets Management, 205–209 

in Cost Center Accounting, 

211–217 

in Cost Element Accounting, 

209–211 


187–192 

in Internal Order, 217–220 


in New G/L, 289 

in Product Costing, 226–228 

in Profit Center Accounting, 

220–224 

in Profitability Analysis, 224–226 

V 

validations, 15, 27, 122 

valuations, 36 

value fields, 85 

variance analysis, 77 

vendor down payments, 139, 278–279 

vendor masters 

bank types in, 54 

certification questions on, 101–103 

creating, 103–104, 119–120 

preventing duplicate, 52 

records in, 107 

segments in, 48 

sensitive fields in, 49 

vendors, 127–128, 136–137

322 INDEX 

W 

warranty information, 152–153 

WBSs (work breakdown structures), 

68–69 

withholding taxes, 46–47 

work breakdown structures (WBSs), 

68–69 

workflows, 91–92 

Y 

year closings, 147 

year-dependent fiscal years, 

18, 23, 99 

year-end closing 

process, 144 

year-specific fiscal year 

variants, 16

SAP ERP Financials and FICO Handbook

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?