Contents
Organizational Structure ................................................................................................... 1
The Client ........................................................................................................................ 2
Company Code ................................................................................................................. 2
Let’s Start Customizing ..................................................................................................... 3
Define a Company ............................................................................................................ 5
Define a Company Code .................................................................................................... 9
Assign Company Code to Company ................................................................................... 12
Business Area .................................................................................................................. 14
Define a Business Area ..................................................................................................... 14
Segment ......................................................................................................................... 15
Define a Segment ............................................................................................................ 15
Fiscal Year Variant ........................................................................................................... 16
Year Independent ............................................................................................................ 17
Year Specific or Year Dependent ....................................................................................... 18
Maintain Fiscal Year Variant .............................................................................................. 18
Assign the Fiscal Year Variant to the Company Code ........................................................... 21
Opening and Closing Posting Periods ................................................................................. 21
Define Variants for Open Posting Periods ........................................................................... 22
Assign Variants to Company Code ......................................................................................23
Specify Open and Closing Periods ......................................................................................24
Summary ........................................................................................................................ 26
The Chart of Accounts ..................................................................................................... 27
Create the Chart of Accounts ........................................................................................... 29
Assign Company Code to Chart of Accounts ...................................................................... 31
Define Account Group ..................................................................................................... 32
Define Retained Earnings Account ................................................................................... 37
Summary ....................................................................................................................... 39
Document Control ........................................................................................................... 41
Document Type ...............................................................................................................42
Posting Key .....................................................................................................................43
Defining Number Ranges ................................................................................................ 44
How to Display Number Intervals .....................................................................................47
How to Delete Number Range Intervals ........................................................................... 47
How to Copy Document Number Ranges ......................................................................... 48
Understand and Manage Field Status Variants .................................................................. 49
Define Field Status Variants .............................................................................................50
Display Field Status Variants ............................................................................................52
Assign Company Code to Field Status Variants .................................................................. 52
Summary ....................................................................................................................... 53
Tolerance Groups ........................................................................................................... 55
Define Tolerance Groups for G/L Accounts ....................................................................... 56
Define Tolerance Groups for Employees ........................................................................... 60
Define Default Tolerance Groups for Employees ............................................................... 60
Define Tolerance Groups for Employees with a Group Key ................................................ 62
Assign Users to Tolerance Groups ................................................................................... 63
Summary ...................................................................................................................... 64
General Ledger ............................................................................................................. 65
What Is a Master Record? .............................................................................................. 66
Creating G/L Account Master Records ............................................................................. 67
Create a G/L Account: Office Supplies ............................................................................. 68
Create a G/L Account (Called Office Expenses) Using a Template ...................................... 76
Display G/L Accounts ......................................................................................................78
Summary ...................................................................................................................... 79
Clearing Open Items ..................................................................................................... 81
Manual Clearing Overview ..............................................................................................82
Prepare Automatic Clearing ............................................................................................83
Create Accounts for Clearing Differences ........................................................................ 84
Define a Maximum Exchange Rate Difference ................................................................. 86
Checking the Company Code Settings ............................................................................ 89
Foreign Currency Valuation ........................................................................................... 91
Exchange Rate Types ....................................................................................................91
Define Valuation Methods ..............................................................................................92
Prepare Automatic Postings for Foreign Currency Valuation ............................................. 94
Exchange Rate Difference Using the Exchange Rate Key (KDB) ....................................... 95
Exchange Rate Differences for Open Items/GL Accounts ................................................. 96
Exchange Rate Difference for Open Items–Account Payable ............................................ 99
Summary ................................................................................................................... 100
Currencies .................................................................................................................. 101
Exchange Rate Types .................................................................................................. 102
Define a Standard Quotation for Exchange Rates .......................................................... 103
Enter Prefixes for Direct / Indirect Quotation Exchange Rates ........................................ 104
Define Translation Ratios for Currency Translation ........................................................ 106
Enter Exchange Rates ................................................................................................. 108
Summary ................................................................................................................... 110
GR/IR Clearing ........................................................................................................... 111
Invoiced But Not Yet Delivered .................................................................................... 113
Delivered But Not Yet Invoiced .................................................................................... 115
Summary ................................................................................................................... 116
House Bank ............................................................................................................... 117
Define House Banks ................................................................................................... 119
Define Bank Accounts for Your House Banks ................................................................ 121
Bank Statements ........................................................................................................ 123
Electronic Bank Statement ...........................................................................................124
Make Global Settings for Electronic Bank Statements .................................................... 125
Configure a Manual Bank Statement ............................................................................ 136
Check Deposits .......................................................................................................... 142
Define Posting Keys and Posting Rules for Check Deposits ............................................ 143
Create and Assign Business Transactions ..................................................................... 148
Define Variants for Check Deposits ............................................................................. 148
Summary .................................................................................................................. 150
Sales and Purchases Tax ............................................................................................ 151
Basic Settings ............................................................................................................ 153
Define Tax Codes for Sales ......................................................................................... 154
Define Tax Accounts for Sales ..................................................................................... 156
Define Tax Codes for Purchases .................................................................................. 158
Define Tax Accounts for Purchases .............................................................................. 160
Assign Taxable Codes to Non-Taxable Transactions ...................................................... 161
Summary ................................................................................................................... 162
Cash Journal .............................................................................................................. 163
Create G/L Accounts for a Cash Journal ....................................................................... 164
Specify the Amount Limit for a Cash Journal ................................................................ 164
Define Number Range Intervals for Cash Journal Documents ........................................ 165
Set Up the Cash Journal ............................................................................................. 167
Create, Change, and Delete Business Transactions ....................................................... 168
Set Up Print Parameters for the Cash Journal .............................................................. 170
Summary ................................................................................................................. 171
Financial Statement Versions ..................................................................................... 173
Define Financial Statement Versions ........................................................................... 174
Step 1: Create Items ..................................................................................................176
Step 2: Reassign Items as Subordinates ......................................................................177
Step 3: Assign FSV Nodes to G/L Accounts .................................................................. 182
Step 4: Define the Credit/Debit Shift ........................................................................... 183
Check Assigned G/L Accounts to FSV .......................................................................... 185
Summary .................................................................................................................. 187
Integrate FI with Other SAP Modules .......................................................................... 189
Material Management (MM) ....................................................................................... 191
Configure Automatic Postings .....................................................................................192
Sales & Distribution (SD) ........................................................................................... 197
Prepare Revenue Account Determination .....................................................................198
Summary ................................................................................................................. 201
Accounts Payable and Accounts Receivable ................................................................ 203
What Is a Customer Account Group? ......................................................................... 204
Define Account Groups with Screen Layout (Customer) ............................................... 205
Maintain the Field Status Group for the General Data of the Customer Account Group ... 206
Enter Accounting Clerk Identification Code for Customers ............................................ 208
Create Number Ranges for Customer Account Groups ................................................. 209
Assign Number Ranges to Customer Account Groups .................................................. 211
What Is a Vendor Account Group? ............................................................................. 211
Define Account Groups with Screen Layout (Vendors) ................................................. 212
Maintain the Field Status Group for General Data for the Vendor Account Group ........... 213
Enter a Accounting Clerk Identification Code for Your Vendors ..................................... 214
Create Number Ranges for Vendor Accounts ............................................................... 215
Assign Number Ranges to Vendor Account Groups ...................................................... 217
Terms of Payment .....................................................................................................217
Installment Plan ....................................................................................................... 221
Defining a Cash Discount Base for Incoming Invoices ................................................. 224
Incoming Invoices/Credit Memos Enjoy Transactions .................................................. 224
Defining Document Types for Enjoy Transactions ....................................................... 225
Defining Tax Code per Transaction .............................................................................226
Defining Accounts for Net Procedures ........................................................................ 227
Defining Accounts for Cash Discounts ........................................................................ 228
Defining Cash Discounts Granted ...............................................................................228
Defining Account for Cash Discount Taken ................................................................ 228
Defining an Account for a Lost Cash Discount ........................................................... 229
Defining Account for Overpayments/Underpayments ................................................. 229
Manual Outgoing Payments ..................................................................................... 232
Define Tolerances for Vendors ................................................................................. 232
Define Reason Codes for Manual Outgoing Payments ................................................ 234
Define Accounts for Payment Differences (Manual Outgoing Payments) ...................... 237
Automatic Outgoing Payments ................................................................................. 238
All Company Codes ..................................................................................................238
Paying Company Codes ............................................................................................240
Payment Methods in Country ....................................................................................243
Payment Methods in Company Codes ....................................................................... 243
Bank Determination for Payment Transactions .......................................................... 247
Bank Accounts .........................................................................................................248
Sort Methods and Adjustment Accounts for Regrouping Receivables/Payables ............. 251
Define Sort Methods .................................................................................................252
Define Adjustment Accounts for Receivables/Payables by Maturity .............................. 254
Adjustment Posting/Reversal .................................................................................... 258
Permit Negative Postings ..........................................................................................259
Define Reasons for Reversal .....................................................................................259
Summary ............................................................................................................... 260
Dunning ................................................................................................................. 263
Define the Dunning Area ..........................................................................................263
Define the Dunning Procedures .................................................................................264
Correspondence ...................................................................................................... 272
Define Correspondence Types .................................................................................. 273
Assign Programs to the Correspondence Types ......................................................... 274
Define Sender Details for a Correspondence Form ..................................................... 275
Determine Call-Up Functions .....................................................................................277
Define Reply Addresses for Balance Confirmation ...................................................... 277
Summary ............................................................................................................... 279
Special G/L Transactions ......................................................................................... 281
Technical Factors .....................................................................................................282
Down Payments ...................................................................................................... 283
Down Payment Received ..........................................................................................284
Down Payment Requests (Customer) ........................................................................ 286
Define Account for Tax Clearing (Customer Down Payments) ..................................... 287
Down Payment Made .............................................................................................. 289
Down Payment Requests for Vendors ....................................................................... 290
Define Account for Tax Clearing (Vendor Down Payments) ......................................... 291
Guarantees ............................................................................................................. 292
Define Alternative Reconciliation Accounts for Customers (Guarantees) ....................... 292
Define Alternative Reconciliation Accounts for Vendors (Guarantees) ........................... 293
Define Accounts for Automatic Offsetting Entry .......................................................... 293
Summary ................................................................................................................ 295
Customer/ Vendor Master Record ............................................................................. 297
Create Customer Master Record ............................................................................... 298
Create Vendor Master Record ................................................................................... 300
Accounts Receivable—Document Entry ...................................................................... 302
Customer Invoice Posting ......................................................................................... 302
Posting a Credit Memo ............................................................................................. 306
Holding and Parking Documents ............................................................................... 308
Holding Documents ................................................................................................. 308
Calling Up a Held Document ..................................................................................... 309
Parking Documents .................................................................................................. 310
Parking/Editing a Document ...................................................................................... 311
Incoming Payments .................................................................................................. 311
Posting a Standard Incoming Payment ....................................................................... 312
Posting a Partial Payment .......................................................................................... 315
Posting Residual Items .............................................................................................. 317
Customer Down Payments ......................................................................................... 318
Posting a Customer Down Payment Request ............................................................... 318
Posting Customer Down Payments ............................................................................. 319
Clearing Customer Down Payments ............................................................................ 321
Display Account Balances ........................................................................................... 323
Display Customer Account Balances ............................................................................ 323
Display Line Items ..................................................................................................... 326
Display/Change Customer Line Items .......................................................................... 326
Correspondence ........................................................................................................ 327
Request Correspondence ........................................................................................... 327
Print Correspondence ................................................................................................ 328
Execute Dunning ....................................................................................................... 331
Display Dunning Details ............................................................................................. 334
Print Dunning ............................................................................................................ 335
Accounts Payable—Document Entry ............................................................................ 335
Vendor Invoice Posting ...............................................................................................336
Manual Outgoing Payment ......................................................................................... 338
Outgoing Payment ......................................................................................................338
Automatic Payments .................................................................................................. 340
Check Lots .................................................................................................................340
Automatic Payment Program ...................................................................................... 342
Use the Cash Journal ................................................................................................. 353
Cash Receipts .............................................................................................................354
Cash Payments ...........................................................................................................355
Summary ................................................................................................................... 357
The Controlling Module ................................................................................................ 359
General Controlling .......................................................................................................360
Organizational Controlling .............................................................................................360
Cost Element Accounting ............................................................................................. 370
Make Default Settings for Automatic Creation of Primary and Secondary Cost Elements ... 370
Create Batch Input Session ...........................................................................................372
Execute a Batch Input Session ......................................................................................374
Primary Cost Element ...................................................................................................376
Secondary Cost Elements .............................................................................................378
Cost Center Accounting ............................................................................................... 379
Define the Standard Hierarchy ......................................................................................379
Create Cost Center Group .............................................................................................386
Use Statistical Key Figures ............................................................................................391
Change Activity Output/Prices Planning ..........................................................................393
Compare Cost Centers: Actual/Plan/Variance ................................................................. 394
Profit Center Accounting .............................................................................................. 395
Basic Settings ...............................................................................................................396
Maintain Controlling Area Settings ................................................................................. 396
Create Dummy Profit Center ..........................................................................................398
Set Control Parameters for Actual Data ......................................................................... 399
Maintain Plan Versions ..................................................................................................400
Define Standard Hierarchy for Profit Centers .................................................................. 401
Define Profit Center .......................................................................................................404
Define Number Ranges for Local Documents .................................................................. 406
Assign Profit Centers to Cost Centers ............................................................................. 407
Posting Controlling Documents ...................................................................................... 409
Display Line Items .........................................................................................................410
Profit Center: Interactive Reporting .................................................................................412
Distribution ................................................................................................................... 413
G/L Account Posting .......................................................................................................417
Display Actual Cost Line Items for Cost Centers ............................................................... 418
Summary ...................................................................................................................... 419
■■Chapter 19: Customizing New General Ledger Accounting ............................................ 421
New General Ledger ...................................................................................................... 421
Leading Ledger ..............................................................................................................422
Non-Leading Ledger .......................................................................................................422
Define Ledgers for General Ledger Accounting .................................................................423
Define Currencies of Leading Ledger ...............................................................................424
Define and Activate Non-Leading Ledgers ....................................................................... 427
What Is a Scenario in General Ledger Accounting? .......................................................... 429
Assign Scenarios and Customer Fields to Ledgers for Leading Ledger ............................... 430
Define Ledger Group ......................................................................................................435
Accounting Principles .................................................................................................... 435
Real-Time Integration of Controlling with Financial Accounting ........................................ 437
Assign Variants for Real-Time Integration to Company Codes .......................................... 439
Account Determination for Real-Time Integration ........................................................... 440
Document Types .......................................................................................................... 441
Define Document Types for Entry View in a Ledger ......................................................... 442
Define Document Types for General Ledger View ............................................................ 443
Document Splitting ....................................................................................................... 444
Classify G/L Accounts for Document Splitting ...................................................................445
Classify Document Types for Document Splitting ............................................................. 449
Zero-Balance Clearing Account ........................................................................................449
Posting General Ledger Accounting Documents ............................................................... 450
Enter G/L Account Documents ........................................................................................451
Enter G/L Account Document for Ledger Group ...............................................................451
Reverse Document ....................................................................................................... 453
Document Display ........................................................................................................ 456
Closing ........................................................................................................................ 458
Foreign Currency Valuation ........................................................................................... 459
Balance Carry Forward ..................................................................................................461
Summary .................................................................................................................... 468
■■Appendix A: Useful General Ledger Accounts ............................................................. 469
Chapter 5 .................................................................................................................... 469
General Ledger ............................................................................................................ 469
Chapter 6 .................................................................................................................... 476
Automatic Clearing Differences ......................................................................................476
Foreign Currency valuation ............................................................................................478
Chapter 8 .................................................................................................................... 486
GR/IR Clearing ..............................................................................................................486
Chapter 9 .................................................................................................................... 492
House Bank ..................................................................................................................492
Bank Statement ............................................................................................................494
Chapter 10 .................................................................................................................. 504
Tax on Sales/Purchases .................................................................................................504
Chapter 11 .................................................................................................................. 506
Cash Journal ................................................................................................................506
Chapter 13 .................................................................................................................. 511
Integration of FI with Other Modules ..............................................................................511
Chapter 14 .................................................................................................................. 517
Terms of Payment ........................................................................................................517
Define Sort Method and Adjustment Accts to Regrouping ............................................... 522
Chapter 16 .................................................................................................................. 533
Special G/L Transaction .................................................................................................533
Down Payments ............................................................................................................538
Chapter 19 ................................................................................................................... 544
New General Ledger ......................................................................................................544
■■Appendix B: Some Useful Transaction Codes .............................................................. 547
FI ................................................................................................................................ 547
End User: Accounting Document Posting ........................................................................ 551
Controlling ................................................................................................................... 553
Index .......................................................................................................................... 555
Introduction
In this introduction, I explain the meaning of the acronym SAP, the origin of SAP, and the concept of SAP implementation. We will go further to look at Enterprise Resource Planning (ERP) as it relates to SAP, the importance of SAP, and the steps involved in implementing SAP ERP.
What Is SAP?
SAP (Systems, Applications, and Products) in data processing is the leading ERP (Enterprise Resource Planning) business application software in the market today. The software provides a unified platform that allows business processes integration. SAP is developed by SAP AG, a German software company founded in 1972 by five ex-IBM employees. With its headquarters in Germany, SAP has regional offices around the world.
SAP is used by many Fortune 500 companies worldwide as a business solution for processing operational data and for generating reports in real-time, which helps all levels of management make better decisions and enables them to manage business processes effectively and efficiently.
ERP (Enterprise Resource Planning)
ERP is accomplished through business software packages like SAP that are made up of application modules that companies use to store data and manage business processes as a whole. Modules involve accounting, human resources, security, supply chain management, and more. These modules are used to manage the “8Ms,” (Man, Material, Machine, Money, Method, Minutes, Management, and Marketing). The idea is to improve efficient management enterprise resources. Besides SAP, ERP packages are produced by Oracle (PeopleSoft), BAAN, JD Edwards, and Siebel, among others.
The Importance of SAP ERP
Since its inception in 1972, SAP has gained international acceptance across the world by large organizations as the most preferred business solution package. SAP ERP is structured in three-tier layers, which makes it a robust ERP software solution. Apart from being the most widely used application software in the world today, the following benefits are derived from the use of SAPERP.
Real-Time Three-Tier Architecture
SAP supports a real-time three-tier (R/3) architecture made up of these three layers:
• Presentation Layer: This is the first layer in a typical three-tier architecture and it serves as the input device that controls the SAP system. It is user-friendly Graphical User Interface (GUI) that’s used by the end-user to input data into the system.
It also serves as a data-output device. The presentation layer communicates with theapplication layer.
• Application Layer: This layer serves as the middleman in a SAP system. It’s where the all processing is done. The application layer can be referred to as the central processing unit (CPU). It collects data from the database, processes it, and passes it to the presentation layer.
• Database: Allows the data to be stored, called up, and modified.
The real-time three-tier architecture allows separate business processes to function under a single, integrated business management information system.
Customizable Solution
SAP ERP 6.0 is scalable and suited for medium and large organizations, since it provides a customizable solution using the structured programming language, ABAP/4. This flexibility allows companies to customize the system to meet their specific needs. In order to enable customers and partners to customize the SAP application to meet their specific-business requirements, SAP comes with the Easy Access menu and the Implementation Guide (IMG) menus.
Easy Access
The Easy Access menu is a user-specific point of entry into the SAP system. It is the first screen that comes up when you logon to SAP. It is designed in a tree structure containing a list several key items that provide the options that allow you to navigate the system and perform tasks and business processes. For example, you can perform transactions and generate reports and access web addresses (where you can access documents from a remote internet server).
IMG (Implementation Guide)
The IMG is a generic tool that you can use to customize business processes and requirements to meet specific needs of a company. You are presented with three implementation variants in SAP:
• SAP Reference IMG. This is a standard structured hierarchical tool in R/3 system (real-time three-tier architecture) that contains the procedures for customizing various country settings and application modules in the SAP system.
• Project IMG. Configuration process can be very daunting. To help manage the complexity involved when using the reference IMG, you can create each implementation project based on specific functions needed for business processes
and requirements. For example, you could use it to reduce the project scope to specific objects such as countries.
• Project View IMG. You choose certain properties by specific criteria in order to generate views to organize your project activities. For example, a project view could hold each activity required in a project IMG.
Matchcode
Matchcode is a user-friendly search function designed to help you lookup or retrieve data records stored in the system. It’s an efficient way of looking for records stored in the system when you do not remember their keys.
Supports Other Operating Systems
SAPERP 6.0 EHP7 is very versatile and supports various operating systems, such as:
• Microsoft Windows 2000 professional, Microsoft XP professional, and Microsoft Server 2003
• HP UX 11.11 and HP UX 11.23
• Novell SUSE SLES9
• Sun Solaris 9 and Sun Solaris 1
• IBM AIX 5.2 and IBM AIX 5.3
Unified Platform
SAP provides the platform where all business processes are executed in a single system and share common information.
Incorporating Multiple Languages and Currencies
SAP ERP is ideal for multinational organizations because of the flexibility incorporated, which allows the system to run on multiple currencies and use different languages. These features make SAP a global software solution.
Integrated ERP Solutions
SAPERP is an integrated ERP package that incorporates other modules. These include Financial (FI), Controlling (CO), Material Management (MM), Sales and Distribution (SD), Production Planning (PP), Human Resources (HR), Financial Supply Chain Management (FSCM), Customer Relationship Management (CRM), and others.
Reduced Implementation Cost
The cost and time needed to implement SAP can be reduced by applying rapid-implementation techniques using global and industry-specific templates during customization.
Global Presence
As the market leader in ERP, the SAPERP solution is currently used in over 28 industry sectors and has a strong global presence in more than 120 countries worldwide. This number is predicted to rise.
SAP FICO
FICO stands for Financial (FI) and Controlling (CO). These are the two core modules in SAP and are tightly integrated to help management maintain and generate financial reports for efficient decision-making and strategic planning.
Financial (FI)
The FI module is a business process designed specifically for organizations to maintain their financial records efficiently on a daily basis, for management to be able to ascertain their financial position, and for those who need to generate financial statutory reports for external purposes to meet the needs of various stakeholders in real-time.
The FI module consists of other sub modules, including: General Ledger (G/L), Accounts Receivable (AR), Accounts Payable (AP), Bank Accounting, Asset Accounting, Special Purpose Ledger, Travel Management, and so on.
FI is integrated into other modules like Sales and Distribution (SD) and Material Management (MM). Postings made in these modules with financial implications are posted real-time to FI.
Controlling (CO)
The Controlling module is designed specifically to provide operational information to management to aid better decision-making, and for formulating strategic and operational planning. In SAP ERP, the Controlling module is composed of the following sub modules: Cost Element, Cost Center, Internal Order, Activity-Based Costing, Product Costing, Profitability Analysis, and Profit Center.
Why This Book?
This book arose out of my sincere desire to simplify the complexity involved in SAP FICO configuration. It is also an attempt to make SAP FICO configuration an interesting career path for those so inclined. As a SAP trainer at the corporate and individual level, I’ve learned that the best way to teach is to design a systematic approach that guides beginners step by step through using all learning resources available. This can make learning fun and interesting. That is what I have done in this book.
You’ll find that SAP ERP Financial Accounting and Controlling: Configuration and Use Management is one of the most illustrative SAP FI books on the market. It includes numerous screenshots and practical examples. Even those without prior configuration knowledge or skills of any sort will be able to follow each step with ease, which is what makes this book unique.
To promote a better understanding of the complexities and concepts of the activities throughout the book, I followed a problem-based approach that tries to replicate real-world situations. As you work through each problem, you will gain the practical experience needed to become an expert in the world of SAP. Every problem used in the book is geared to meet business processes and requirements unique to each customizing step, but the overall objective is to equip you as a functional SAP consultant on the completion of this book.
The book covers the financial (FI) module, the controlling (CO) module, the new general ledger (G/L) accounting modules, and some aspects of end-user postings.
This book is unlike others in that it incorporates IMG (Implementation Guide) and accounting. The IMG side of the system is where SAP configurations are performed and the accounting side of the system is where end-users input data into the system. It is also unique in giving readers a great opportunity to learn the rudiments of FI, CO, new G/L implementation, and accounting for end-users simultaneously. The benefit of combining the SAP implementation and Easy Access is that you have an opportunity to explore both sides of the system to gain an in-depth understanding of how data flows in the system. Additionally, trainers will find the book excellent material for those charged with showing others how to configure and use SAP FICO.
A Quick Overview of the Book’s Contents
Each chapter provides a sequence to be followed in customizing SAP FICO from start to finish. The sequence has been arranged to give you the opportunity to work through a complete FICO customizing lifecycle progressively. Each chapter includes all the configuration concepts or activities necessary for your customizing or draws on a previous chapter.
Chapter 1 sets the scene by looking at organizational structure and explains how to create various objects in SAPR/3. This includes how to create company codes, business areas, segments, country-specific settings, and so forth.
Chapter 2 explains and defines the Master Record, including how to edit the Chart of Accounts and how to assign a company code to the Chart of Accounts. It further explores how to define the Account Group and Retained Earnings account.
Chapter 3 looks at the purpose of document control and various forms of document types in the SAP R/3 system. It also looks at the steps involved in defining number ranges and setting field status variants. It emphasizes the various principles along with the importance of posting keys, normal and special posting periods, and how to create variants for posting periods.
Chapter 4 explores posting authorizations by discussing the purpose of posting authorization, defining tolerance groups for G/L accounts and employees, assigning users to defined tolerance groups, and creating accounts for clearing differences.
Chapter 5 takes a look at the general ledger and its sub ledgers. It covers when to use line items and open item management, how to create G/L accounts, and how to set other objects settings to consider when creating G/L accounts.
Chapter 6 discusses clearing open Items and various types of open-item clearing issues. It covers configuring automatic open item clearing, maximum exchange rate difference settings, the importance of foreign currency valuation, foreign currency balance sheet accounts, and G/L account balances managed on an open-item basis. It also looks at types of exchange rates and how open items are valued in foreign currency.
Chapter 7 explains how to define local and foreign currencies for company codes, maintain the relationship between currencies per currency type, and the purpose of exchange rates. It also explores how to maintain the various exchange rate types and how to define translation ratios for currency transactions.
Chapter 8 explores how to define GR/IR (Goods Receipt/Invoice Receipt) and how to configure GR/IR settings in the SAP R/3 system.
Chapter 9 deals with the House Bank and how master records are created in it. It explains using the House Bank ID and account ID, bank statements supported by SAP, creating global settings for electronic bank statements, configuring manual bank statements, defining posting keys and posting rules for check deposit, and defining variants for check deposit.
Chapter 10 looks at taxes on sales and purchases, including VAT. It covers how to create sale and purchase taxes in SAP R/3, how to specify the tax category in the G/L accounts to which taxes are posted, how to assign the basic tax code for sales and purchases, how to specify the accounts to which different tax types are posted, and how to assign tax codes for non-taxable transactions.
Chapter 11 covers the cash journal by explaining what it is and explaining which items are defined when setting up a new cash journal. It identifies the document types for cash journal items, explains how to create G/L accounts for cash journals, and how to set up the cash journal.
Chapter 12 explains the Financial Statement Versions (FSV). The chapter looks at how to create an FSV from scratch, covers the specifications to be conducted when defining FSV, how to call up FSV hierarchy nodes, and how to assign appropriate G/L accounts.
Chapter 13 explores the Integration of FI with other modules in SAP R/3. This includes automatic postings of material to FI, using the valuation class of material as the key to which the G/L account materials are posted, the settings for automatic posting configuration, how to create inventory accounts using the BSX transaction key, how to create corresponding credit accounts for GR/IR clearing account using the WRX transaction key, how integration of FI and SD works, how to prepare revenue account determination, and how to define accounts for overhead cost controlling.
Chapter 14 deals with Accounts Receivable and Accounts Payable, including the steps involved in creating a payables/receivables, the function of the account group, how to create IDs for accounting clerks, how to create vendor/customer details, how to resolve number range overlaps, and more. It also covers payment terms in SAP, the purpose of defining payment terms in SAP R/3, and how to create installment plans. The chapter also defines the sort method and adjustment accounts for regrouping receivables/payables, and adjustment accounts for receivables/payables by maturity. Finally, the chapter shows you how to adjust or post document reversals using the negative posting method, and how to define reasons for reversal.
Chapter 15 covers correspondence and dunning, including how to define correspondence types, sender details, the various levels involved in defining dunning. It explains how to determine special G/L transactions so the system can dun them.
Chapter 16 looks at why it is important to disclose special G/L transactions separately by using alternative reconciliation accounts. It provides an explanation of special G/L transactions, including guarantees, down payments, and bills of exchange. It also covers down payments in depth.
Chapter 17 looks at how to create and change vendor/customer master records in Easy Access, how to post invoices in the system, how to treat credit memos, how to hold and park documents, how to manage incoming and outgoing payments, how to process partial payments and residual items, how to generate dunning, and how to manage cash journal postings.
Chapter 18 explores some of the Controlling modules, starting with the overall organizational structure.It then looks at cost element accounting, cost center accounting, and profit centers.
Chapter 19 looks at the new general ledger and its benefits, the leading/non-leading ledgers, how to define ledgers and currencies, what scenarios are and how to assign them to ledgers. It also briefly explains accounting principles and how to assign them to ledger groups. Finally, it covers real-time integration of controlling (CO) with FI, how to define documents for entry view in a ledger, the classification of G/L accounts for document splitting, zero-balance clearing, and more .
Appendix A covers all the appropriate G/L accounts needed for your configuration.
Appendix B provides some useful transaction codes that allow you to access tasks easily rather than going through the menu path, which may be time-consuming.
