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SAP FI

NOTES

SAP FI NOTES
INDEX PARTICULARS Introduction Enterprise Structure 1. Chart of Accounts 2. Accounts groups customization 3. Open and Close Posting Periods Sales Tax Procedures 1. Tolerance Groups General Ledger Accounts (GL Accounts) 1.Negative Postings 2. Creation of GL Masters 3. Parked document Foreign Currency Transaction (FCT) 1. Reversal of Reversed document 2. Mass Reversal 3. Balance Interest calculation 4. Accounts Principles Accounts Payable (AP) House Bank 1. Link between sundry creditors and Advance to vendors 2. Purchase Invoice Posting 3. Term of Payments-Maximum Cash discount 4. Automatic payment Program(APP) 5. Check printing 6. Credit Memo Accounts Receivable (AR) 1. Sales Invoice Posting 2. Incoming payment 3. Link between sundry debtors and advance from customers 4. Advance Receipt posting Bill of Discounting (Bill of Exchange) 1. Define dunning areas Sales Tax Asset Accounting (AA) 1.Chart of Depreciation 2. Asset Classes 3. Asset Sale /Transfer/Scrapping Reports 1.Chart of Accounts List Page No. 3 11 15 19 27 36 36 41 41 43 54 72 77 78 87 92 99 106 115 116 119 128 130 132 134 135 142 144 144 148 156 162 170 172 176 199/201/202 204 204

2.Trail balance / Ledger /Vendors List 3. Data Takeover 4.Up loading of master in SAP (LSMW) 5.Balances uploading Bank Reconciliation Statement (BRS) 1.House Bank 2.Check Lots 3.Sales and Purchase Invoices posting Cash Journal (CJ) Withholding Tax(TDS/TCS) 1.Maintain Calendar 2.Withholding tax codes 3.Create Remittance Challan 4.Print TDS Certificate 5.Quaterly Return

205/206 209 212 217 228 231 232 241 245 248 249 254 264 265 266

INTRODUCTION SAP stands for System Application and Products in data Processing FI stands for Financials CO stands for Controlling Version : ECC6 ECC stands for ERP Central Component SAP was released in 1972 It head quarters in Germany What is ERP? ERP stands for Enterprise Resource planning, it is integrated all functions in one system. Organization | -----------------------------------------------------------------------------------------| | | | Purchase Dept. Store Dept. Production Dept. Accounts Dept. Will have no of departments in organization. ERP integrate all the functions into one system. It will facilitate free flow of data among the departments. Advantages: Once stores person updates in the system It can be shared by account person. No mismatch in reporting Data Source is only one once updation. Store Department at Factory: Where the material is received are updates his records send the bill to account person. Accounts department at City office : Pass an entry in the books Disadvantages: Duplicate job Time gap. ERP Packages: SAP, Oracle, Financials, Peoples soft, BAAN , J.D.Edwards 1972- SAP R/1 Real time data processing 1980-SAP R/2 Included no.of countires and no.of currencies

1990 SAP R/3- R/3 stands for Data Structure 1.Application Server 2.Data based server 3.Presentation 1999 My SAP.com Web baed 2004 Net weaver Integrates information, people and process. Areas to be covered under FI /CO FI: 1. General Ledger accounting 2. Accounts payable 3. Accounts receivable 4. Asset accounting CO: 1. 2. 3. 4. 5. 6. Cost element accounting Cost center accounting Internal orders Profit center accounting Product costing Profitability analysis

Integration of: 1. 2. 3. 4. Material Management Module to Financials (MM to FI) Sale & Distribution module to Financial module integrate (SD to FI) Data take over(From Non-SAP to SAP) Closing procedure

Reports: In all the module systems gives around 2000 reports You can attach the reports to favorites Some important reports you can attach the reports on desk top. Cross company code transactions: India version: TDS , Excise and sales tax Companies Act:1956: as per Schedule VI Balance sheet and Profit & Loss A/c

What are difference between SAP EE 4.7 and ECC 6.0? SAP EE 4.7 Stands for Enterprise Edition No Netware concept (Offline) Segment wise report is not possible Only one currency SAP ECC 6.0 Stands for Enterprise Central Compound Netware concept (Online) Is it possible Multiple ledgers in currencies Document splitting Foreign currency revaluation based on accounting principles

Role of FI /CO Consultant 1. 2. 3. 4. 5. 6. Project Manger Senior Consultant Junior consultant (Each project 3 to 6 members) Support Consultant (Eg.IBM, Accenture) Core Team Members End User

How to Open SAP Open: Double lick on SAP Logon Icon Double Click ECC 6 Server First Screen: First Field : Client :2 Clients 1. Development client 2. Production client In the implementation SAP 1. Consultants 2. Company staff (Core Team Members) The consultant they do the customization in development client The company staff will do the testing. The customization will be transferred to client through transport requests. In the production client you enter day to day transaction. Some companies they will give 3 clients: 1. Development client 2. Testing client 3. Production client

Client: User:

800/000/810 You can copy and give any number Cost of package will depend on the no.of users licenses. 100 users license used by 1000 employees It fixes the responsibility on employee.

User ID: SAP user: You can use small or capital letters (Its not case sensitive) Password: The length of password Min3 Max 8 (it can be numeric, Alpha Numeric , Alphabets, and Special characters.) Password is not case sensitive Not possible to change password more than once in a day Latest 5 passwords can not be used Password can not be restored Money is the password.

What is client? Aravind Group (Aravind Industries Ltd) (Aravind Steel Ltd) Wipro (Consluting Firm)

To Purchase Sap Package From Sap India Bangalore Wipro Will Customize(Map) Aravind Requirement In SAP ARAVIND Project Manager Core team accounts manager Cost accountant Purchase Manager Sales Manager It staff WIPRO Project manager FI Consultant CO Consultant MM Consultant SD Consultant ABAP programmer BASIS Administrator

Aravind :Core Team As is Process_What Is Requested From SAP Wipro :To Be Process What Should Be Done In SAP Development Client Wipro Customization Production Client - Transport Request

Aravind Core Team

- Testing

After testing by Aravind core team customization will be transported to production client through transport request Production client is live client where we enter day to day transactions If the consultant do customization once again in production client, if they commit any mistake all the postings will go wrong where as development client customization is tested customization by the Aravind core team and corrected by Wipro team. We will not get any mistakes in the development client customization. In live environment we should have minimum 2 clients some companies they keep 3 clients

Development Client Wipro Customization Aravind Core Team

Testing quality Client -> Transport Request Testing

Production Client ->

"When SAP is purchased from SAP India we get clients like 000,001,067 and 800" Basis consultant copies 000 client and give the number required by Aravind care team

Client :800

(Development Client)

User : Cost of package will be based on number of user licenses User Id Creation Is The Job of BASIS Administrator A) Cost Factor B) User Id Fixes Responsibility on Employee SAP User: Password: It Is Not Case sensitive (Capital Letters Or Small Letters) Password Is Case Sensitive (From Ecc 5 Onwards)

Length of Password: Minimum 6 Maximum 40 "We can use alphabets, Numerical, alphanumeric, special characters-like"

Not possible to change password more than once in a day. System will not permit to use latest previous 5 passwords EG: 1.09.2008 ABC123 5.09.2008 XYZABC 12.09.2008 ABC123

system will not permit

Password can not be restored BASIS Administrator deletes old password and gives a new password : oracle Language : 41 Languages

If we do not specify any language it takes English by default or we can use EN for English If we user id : The menu will be in German

Client: 800 User: SAPUSER Password: oracle Press enter Now open SAP Select and choose the radio button depend on necessity. Employee1 Can not work Work Can work Employee2 Can work Can work Can not work

1st Radio button 2nd Radio button 3rd Radio button

In training institutes we have to select 2nd radio button Enter 1st raw is called menu bar Menu Edit ,Favorites ,Extras 2nd raw is called standard tool bar 3rd row is called in title bar 4th is called application tool bar 5th & last is called status bar

The second row the tick is called enter, beside tick box is called is command field." One employee can work in number of sessions (windows) at a time -the maximum is 6 sessions How to create a new session? Path: From the menu bar - Select system- Create session To move from one session to another session (alt+tab) How to end session? Path :From the menu bar - select system- End session

To view which version we are using? Path : From menu bar - Select system- Status-Sap system data

How to use transaction codes (T/C)? We want posting of transaction. option-1 Go through the path and post the transaction Path: Accounting --> Financial accounting -> General ledger-->Posting ->General posting To go back to SAP easy access screen: Use: /n in command field and press enter. option-2 Use transaction code in command field and press enter we can create our own transaction codes they should start with Y or Z

For Posting Transaction: Document (Voucher) entry (F-02)

Account display (FS10N)

After posting we want to view the ledger. a) Use:/n (changing) in command field and enter - to back to sap easy access screen b) Use FS10N in command field and press enter- to go to account display Instead

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use:/NFS10N in command field and press enter change session with new transaction code. use /OFS10N in command field and press enter- create session with new transaction code. ./N for change ./O for create

How to activate transaction codes in sap menu? Path :From the menu bar - select extras - Settings - Display technical namesEnter HOW TO SET A START TRANSCTION? To make one screen as beginning screen Path: From menu bar select extras - set start transactions (transaction code is F-02) Enter Give a message transaction F-02 set as start transaction HOW TO CLOSE SAP? Path: From the menu bar select system - log off - select yes button for the message to logoff Select yes button to log off

HOW TO UNLOCK THE TRANSACTION CODE? At the time of customization -screen will come with display mode not enter mode Path:Tools-Administrator- Monitor-Lock entries (tr.code is SM12) Select list button- Message - No lock entries found Path: From the menu bar select lock entry- Delete all-select yes button for the message

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Delete all lock entries - Enter. Organization structure: SAP ---------| | Group Company | | Company Company code | | Units Businesses Area Creation of Project: Group --> Companies Units In SAP Group is called as company Company is called as company code Unit is called as Business area

ARAVIND GROUP(AVG) | ---------------------------------------------------------------------------------| | | Aravind Mills Ltd(AML) Aravind Steels Ltd(ASL) Aravind Industries ltd(AIL) | | | | | | HYD BGL HYD BGL HYD BGL FI consultant will do customization at company code level -company or group is only for information. We do customization for Aravind Mills Ltd after words we copy customization including accounts to other company codes in one step and make modifications where ever required. ENTERPRISE STRUCTURE DEFINE COMPANY: Path: Tools - Customizing IMG (implementation guide) - Execute project (trns.code SPRO) SPRO stands for SAP Project Reference Object

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Select SAP reference IMG button : This is called customization area or configuration area or implementation area Path:SPRO- Enterprise structure - Definition - Financial accounting - Define company ( Tr code is OX15) It we select IMG activity documentation button: It gives description part about company To select IMG activity button: To do customization Select IMG activity button Select new entries button Company Company name : AVG :Aravind group

name of company2 :blank street postal code country Language key Currency :Ameerpet :500034 :For country select dropdown(pull down) button, select in for india" :select drop down button select EN for English :For currency select drop down button here 218. Select INR for Indian rupees Select save button or Ctrl+s

Development client production client | consultant Customization Transport request By default it gives the latest request we have to create our own request and afterwards to transport to production client For each step we need not create separate request. For Basic settings :1st request For General ledger :2nd request For Account payable :3rd request For Accounts receivable :4th request For Asset accounting :5th request For Controlling :6th request Select create request button (F8)

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Give the short description :FI basic settings for Aravind Mills Ltd Press enter Press enter once again to save in the request. We get a message data was saved: Data was saved in two places:1.Development client 800 2. In Transport request

2.DEFINE COMPANY CODE:

( Tr code is OX02)

Path: Tools - Customizing - IMG- executive project (SPRO) Select sap reference button IMG SPRO - path upto select sap reference IMG button is same. SPRO Consultant job No SPRO End user

job

Note the path SPRO Path: Enterprise structure - Definition- financial accounting - edit, copy, delete, check company code Edit company code data Select new entries button Give company code :AML City :Hyderabad Country :IN Currency :INR Language :EN Select save button or Ctrl+S Title Name Street Post code City Country Press enter :Select company :Aravind mills ltd :Ameerpet :500034 :Hyderabad :IN

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To select our request number select dropdown button beside request number. We can see here number of requests. Select request number by seeing the description. Press enter to save in the request. Description can be same should be different

3.ASSIGN COMPANY CODE TO COMPNAY Path: SPRO - Enterprise structure - Assignment - Financial accounting - Assign company code to company ( Tr code is OX16) Select position button give the company code AML enter For company AML assign company AVG Select save button or Crtl+S Select dropdown beside request number Select your request number Press enter to save in the request 4.Define Business Areas path: SPRO- Enterprise structure- Definition -financial accounting- define business area ( Tr code is OX03) Select new entries button Business area: AMLH Description :Hyderabad AML Bangalore business area link this number Select save button or C trl+s Press enter to save in your request *Assignment of business areas to company code is not required Aravind Group | Aravind Steels Ltd | HYD BGL

Aravind Mills Ltd | HYD BGL

Aravind Industries ltd | HYD BGL ASL accounts person

AML accounts person

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At the time of posting Company code Business area : : AML HYD ASL HYD

* Without giving company code we can not pass to business area At the time of request generation: Company code AML Business area HYD We get HYD data of company Code AML only ASL HYD HYD data of company code ASL only

Some business area can be used by number of company codes in the client assignment of business area to company code is not required. HYD incharge for AML, ASL and AIL in the report Company code AML +ASL+AIL Business area HYD Hyderabad data for all company codes we have Hyderabad business area separately for each company code. HYD Hyderabad business area HYD1 Hyderabad business area HYD2 Hyderabad business area AML accounts person Company code Business area There will be a mixup CHART OF ACCOUNTS: Company Codes: Option-1 when we want to compare or consolidate we can have same set of accounts (chart of accounts) -i.e., Accounts coding will be same. AML ASL AIL

:AML :HYD/HYD1

ASL HYD1/HYD2

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Conveyance account no. Option-2 Each company code has their on set of accounts conveyance account no. Compare or consolidate by using group Chart of Accounts when we create conveyance account no we use 2 numbers Company code no. Group no.

400000

400000

400000

400000 400000

400000 300000

400000 200000

400000 100000

300000 100000

100000 100000

We are comparing or consolidating by using group account number. Companies following option1 Chart of Accounts name Description of chart of accounts Maintenance language English Length of account number most 10 digits (we are using 6 digits)

CREATION OF CHART OF ACCOUNTS) path: SPRO - Financial accounting- General ledger accounting - GL accounts Master Data-Preparation - Edit chart of accounts list (TR.CODE.OB13 The other way to give transaction code is from the menu bar -> Select system - Status Select new entries button. Chat of accounts Description Maintenance language Length of GL account no. Controlling integration Group chart of accounts :AML :Chart of Accounts for Aravind group :English :6 (min 6 max 10) :select manual creation of cost elements :Blank

Under status deselect blocked check box (do not select blocked check box) Select save button or Ctrl+S Select your request and press enter to save in your request

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Controlling integration: select manual creation of cost elements. FI (Financials) CO (Controlling) expenditure

When we past to expenditure accounts in FI it updates, CO automatically provided. We create expenditure accounts as cost elements. All expenditure accounts need not be cost elements expenditure accounts like interest, Depreciation, Non-operating expenses -will not be consolidated for costing -they are debatable.

Cost elements creation Manual Automatic When we select manual, when expenditure account is created and posted in FI, we want that expenditure to update co-create that expenditure account as CO element. If we do not want to update co-records that expenditure create expenditure account only and not to create as cost element -here we have flexibility. If we choose automatic, when we create an expenditure account automatically cost element will be created. When we post to that expenditure account in FI, automatically CO records will be updated-no flexibility. UNDER STATUS DESLECT BLOCKED CHECK BOX: Accounts creation is at end user area, users at the time of posting, they will not check whether account is there as not they create new account and post accounts. We will have number of duplicate accounts in SAP once we create an account and past transaction-IT can not be deleted In live environment after up leading accounts - select blocked check box. No body can create any account whether original account or duplicate account. When there is a necessity to create a new account an authorized person say accounts manager deselects the blocked check box, create the account and afterwards select blocked check box. We have to create the accounts now. We are deselecting the blocked check box. ASSIGN COMPANY CODE TO CHART OF ACCOUNTS path: SPRO- Financial accounting - General ledger accounting- GL AccountingMaster data-Preparation-Assign company code to chart of accounts. (Tr.code OB62)

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Select position button Give the company code Enter

AML

For company code AML assign chart of accounts AML Select save button or Ctrl+S Press enter to save in your request. Accounts groups 100000 100001 100002 100003 Equity share capital Cash account Preference share capital SBI current Account

We have created 1000 accounts We want to view current assets balance or transaction. We can not get directly-we have to verify each and every account and add the respective accounts- in this example account no.100001 and 100003 We are preparing balance sheet on liabilities we have items like share capital, Reserves & surplus-We have to verify each and every account and assign to the respective itemsit takes so much time to assign accounts. To get account balances directly or to assign accounts easily SAP has given account groups. Chart of accounts | Accounts groups | Accounts AML Share capital (100000 - 100099) | Current assets (200000-200099)

When we create the accounts, we create within the range. Cash account will be created within the range of 200000-200099." Equity share capital will be created within the range of 100000-100099. When we want to see current assets balances-we give current assets or at the time of crating balance sheet for Share capital-we give the range 100000-100099 While crating account groups we take client's balance sheet and crate the groups-after implementation also we wants to see the way he used to get.

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WHILE CREATING THE ACCOUNTS GROUPS: 1 Series for liabilities 2.Series for assets 3.Series for income 4.Series for expenditure We have 1000 accounts the user at the time of posting to expenditure account he need not see all accounts he gives 4 only expenditure accounts will appear.

CUSTOMIZATION (TR.CODE.OBD4) path: SPRO-Financial accounting-General ledger accounting- GL accountsmaster data-preparations-Define account group select new entries button Chart of accounts AML AML AML AML AML AML AML AML AML AML AML AML AML AML AML AML AML Account group SCPL RSPL ACDN SCLN UNSL CLPL FAST CAST SALE OTHER INCR RMCL PRSN MFRG ADMN INTR DEPR Name Share Capital Reserves & Surplus Accumulated depreciation Secured Loans Unsecured loan Current Liabilities and Provisions Fixed Assets Current Assets loans & Advances Sales Other Income Increase / Decrease in stocks Raw material consumption Personnel cost Manufacturing Expenses Administration Expenses Interest Depreciation From account 100000 100100 100200 100300 100400 100500 200000 200100 300000 300100 300200 400000 400100 400200 400300 400400 400500 To account 100099 100199 100299 100399 100499 100599 200099 200199 300099 300199 300299 400099 400199 400299 400399 400499 400599

Select save button on Crtl+S Select your request and press enter and save in your request

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6 digits 1000000 100099 share capital 1000-1099 100000000-1000000099 Reserves & Surplus Accumulated Depreciation Unsecured loans Current Liabilities & Provision Fixed Assets

Afterwards we require liabilities account groups with 1 series 10 account groups. How many groups we can crate with 1sries . available accounts (1999-1599)=400 accounts. New account groups with 1series we can create 400/100=4 groups . Now we have to go for 5 series . The user at the time of posting first the will give 1* If the account is not there then he will check with 5* When we use 6 digits: Afterwards we require liabilities account groups with 1 series to 10 account groups. How many groups we can create with 1 series available accounts (199999-100599=99400) accounts. For each account group we are assigning 100 accounts new account groups with 1 series. We can create 99400/100=944 accounts groups. 5/6/7/8/ digits. Retained earnings accounts: In the year end: P & L account balances transfer to surplus in P & L A/c Reserves & Surplus (100100-100199) Balance Sheet A/c balances carry forward to next year as opening balance. This is required in the year end and not during the implementation. SAP has made mandatory this step during the implementation. If the consultant does not do this step, we will have problems in the year end. Though accounts are not yet created assign on account for retained earnings account purpose. We can specify retained earnings account any account number which is with in range 100100-100199. Generally we specify the first account i.e.100100 as Retained earnings account and when we start creating the accounts the first account to be created is 100100 surplus in P & L Account.

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Path: SPRO Financial accounting General ledger accounting GL Accounts Master Data Preparations Define retained earnings account. Give you chart of accounts AML enter. The transaction code is OB53 . Account assignment P & L Statement type X Account 100100 Select save button or Ctrl+S We get a warning message account 100100 not created in chart of accounts AML. Ignore the warning the message press enter. Press enter once again to save in the request. Accounts creation is at end user area and the transaction code is FS00 P & L type 400300 P & L A/c Balance Sheet A/c. In the year end the balance will go to account no.100100 100000 Equity share capital P & L A/c Balance Sheet A/c. Select In the year end the balance will go to the same account as opening balance 1 and 2 series for Balance Sheet Accounts 3 and 4 series for P & L Accounts. a) b) Net operating profit (operating income operating expenses. Net non-operating profit (non-operating income non operating expenses) 400300 Rent account Select X X Y P&L Type 100100 100101 Account No. Net operating profit Net non operating profit Profit Rent Account X 100100 Account No.

P & L Statement A/c type Balance Sheet A/c.

In the year end the balance will go to account no.100100 300100 profit or sale of shares. P & L A/c.

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P& L Statement A/c. type Y In the year end the balance will go to account no.100101. Fiscal year Indian companies periods US Companies Fiscal year variant April to March +4 special periods Jan to Dec.+4 Special Periods July to June+4 Special periods Oct. to Sep+4 special periods V3 K4 V6 V9

April 2007 March 2008 Accounting year 2007-08. In SAP we will call it as fiscal year 2007.

July 2007-June 2008 Oct.2007 Sep.2008

Fiscal year 2007 Fiscal year 2008

2007 April 2007-March 2008 July 2007-June 2008 October 2007-September 2008 9 6 3

2008 3 6 9

Fiscal year 2007 2007 2008

It is above 6 months in next year take next year otherwise same year. April 2007 March 2008 1 12 (Normal periods) Fiscal year 2007 13 14 15 (Special periods)

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For year end adjustment purpose SAP has given special periods . Special periods are part of March March will have total 5 periods 1noraml period 4 special periods. To get the profitability and different stages SAP has given special periods. Why special periods are required: 20th March 2008 we have declared profitability upto February 2008 to the management profitability figures should not be changed. Users should be allowed to post transactions only for March 2008. April 2007-March 2008 Fiscal year 2007.

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Open periods For posting

March 2008-March 2008 12,2007 - 12,2007

No user can post transaction before March 2008 and after March 2008.

30.03.2008 April 2007- March 2008 April 2008- March 2009 Open periods

Fiscal year 2007 Fiscal year 2008.

March 2008-March 2009 12,2007 -12,2008

15/04/2008 accounts dept. finalized profitability for the year ended 31/03/2008

Management adjustment entries Entry Date 05/05/2008 Periods date 31/03/2008 to update last year ledger. We get profitability finalized by management audits by Auditors. 20/05/2008 No.of ratification entries Entry Date 22/05/2008 Posting date 31/03/2008 to update last year ledger. We get profitability finalized by auditors. To day we want to see profitability finalized by accounts department . we can not got March 2008 includes normal entries . Management adjustments and auditors rectification entries. Auditor is asking to show rectification entries list we can not get the list separately. To get profitability separately or to get the rectification entries list separately SAP has given special periods. Usage of special periods is optional. Special periods can come in the same month or different months. Here stage means department profitability, Management profitability and Auditors profitability the state can come in the same month or different months. Accounts Dept. profitability April 2008

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Management adjustments and Auditors rectification entries How special periods will be used: April 2007-March 2008 20th March 2008 open periods for posting

May 2008

Fiscal year 2007 March 2008-March 2008 12,2007.12,2007 No user can post transactions April 2007-March 2008 F.Y 2007 April 2008-March 2009 F.Y.2008

before March 2008 and after March 2008.

15/04/2008 accounts dep. finalized profitability for the year end 31/03/2008 Management adjustment entries. 05/05/2008 Open periods March 2008..March 2009 13,200712,2008

Entry date :05/05/2008 Posting date :31/03/2008 to update last year ledger period 13 We get profitability finalized by Management audit by a auditors. 22/05/2008 no.of rectification entries. Open periods March 2008 . March 2009 14,2007 12,2008

Entry date Posting date Periods

:22/05/2008 :31/03/2008 to update last year ledger 14

We get profitability finalized by auditors. Accounts dep. Profitability : Management Profitability Auditors finalized profitability List of auditors rectification entries

1-12 1-13 1-14 14-14

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SAP known only calendar year periods we have to convert calendar year periods to our accounting year periods. Month 1 2 3 4 5 6 7 8 9 10 11 12 Days 31 29 31 30 31 30 31 31 30 31 30 31 Periods 10 11 12 1 2 3 4 5 6 7 8 9 Year shift -1 -1 -1 0 0 0 0 0 0 0 0 0

January February March April May June July August September October November December

April 2008 April 2008 March 2009 F.Y.2008 In which year it is coming 2008 As which year we are calling in SAP 2008 Year shift

January 2009 In which year it is coming As which year we are calling in SAP Year shift Posting 05/01/2009 update 2008 Ledger not 2009 ledger 2009 2008 -1

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

Oct.2008-Sep 2009 F.Y.2009 Days Periods Year shift October 2008 31 4 0 In which year it is coming as which 2008 29 5 0 year we are calling in SAP 2009 31 6 0 year shift +1 30 7 0 31 8 0 January 2009 30 9 0 in which year it is coming 2009 31 10 0 as which year we are calling 31 11 0 in SAP 2008 30 12 0 year shift +1 31 1 0 30 2 0 posting 05/10/2008 update 2009 ledger 31 3 0 not 2008 ledger

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Path : SPRO Financial accounting Financial accounting Global settings Fiscal year Maintain fiscal year variant (Maintain shortened fiscal year) (Trs.code is OB29 Select position button fiscal variant V3 Enter Select fiscal variant V3 Double click on periods folder Select back arrow Select new entries button FV : B1

Description April to March 4 Special periods Do not select year depend check box If we select year depend check box when we save it will ask for year when we give year 2008 The conversion is applicable only for the year each year we have to create the conversion. If we deselect year dependent check box The conversion is common for all years. Deselect calendar year check box If we select calendar year check box It takes Month 1 (Jan)will be as period 1 Month 4(April ) wil be as period 4 Where as we require month 4(April) should be as period 1 so deselect calendar year check box. No. of posting periods :12 No.of special periods :4 Select save button or Ctrl+S Select your request press enter and press enter save in your request. Select Fiscal year variant :B1 Double click on periods folder. Select new entries button First column Second column Month Day

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Third column Last column

Period Year shift

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

Day 31 29 31 30 31 30 31 31 30 31 30 31

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

Year Shift -1 -1 -1 0 0 0 0 0 0 0 0 0

save Assign company code to a Fiscal year variant Path: SPRO Financial accounting Global settings Fiscal year Assign company code to a Fiscal year variant (Tr.code is OB37) Select position button Give your company code:AML Enter For company code:AML Assign fiscal variant :V3 Select save button Ignore the warning message press enter and press enter to save in the request.

OPEN AND CLOSE POSTING PERIODS Fiscal year : April 2008 March 2009 F.Y 2008 August 2008 March 2009 5,2008 12,2008 Open means: from Close means: to August 2008 March 2009

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Company codes

: AML

ASL

AIL

All company codes Fallow the same Open and close periods Option 1 A) Define posting periods Variant X B) Assign posting period Variant to company codes X.AML X.ASL X.AIL C) Define open and close periods for variant X For X,5 2008 12,2008 Option-2 Each company code having separate open And close posting period variant

Assign posting period variant to company codes X to AML Period for variant July 2008-March 2009 April 2008 to March 2009 For X 04,2008 For Y 12,2008

Y to ASL

Z to AIL

Sep. 2008 to Sep. 2008 For Z 06,2008

In this step we are defining which periods are open for posting. Define variants for open posting periods: Path : SPRO Financial accounting global setting Document posting periodsDefine variants for open posting periods Select new entries button Variant AML Name posting period variant for AML

Ctrl+S, press enter in save

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Assign posting period variant to company code: Path : SPRO-Financial Accounting- Financial accounting global settingsDocument posting periods assign posting period variant company code. Select position button Give the company code AML For company code AML assign variant AML select save button or Ctrl+S Press enter to save in your request. Define open and closed posting periods for variant:: Path: SPRO Financial accounting Global settings Document Posting periods- open and close posting periods. Select new entries button. Vare : Select AML Account type (A): Select + (valid for all accounts type) From Account Blank To account Blank From period one (1) 1 Year 2008 To period 12 Year (Fiscal year) 2008 From period2 13 Year 2008 To period 16 Year 2008 Second column is option (from period 2) Authorization group (Au.Gr): Blank Select save button or Ctrl+S Select your request and press enter to save in your request. Authorization Group: This screen is required every month in production client nobody will have access for customization areas. The same screen is given at user level when it is available at user level, the users will misuse.

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SAP has given authorization group. BASIS Administrator gives authorization group say X and X will be assigned to user IDs manager accounts and deputy manager accounts. When we open the system with the above user IDs then only we can change the periods at the user level. Posting periods entry at end user area: Path: Accounting Financial accounting General Ledger - Environment Current settings-open and close posting periods ( Transaction code :S_ALR_87003642)

Select position button Posting period variant: AML Enter

Document type and no. ranges In normal accounting, account person only will pass all the entries. He will get voucher nos continuously. In SAP voucher we call it as document. FI Accounts Person Material Receipt Payment Sales Receipt 2 3 4 MM Stores Person 1 SD Sales Person

To get document number serially SAP has given document type Doc.type No.Range SA 01 RE 02 100001-200000 RV 03 200001-300000

No.Range interval 1-100000

We are getting the document nos continuously by seeing the document number we can tell where it is generated. In a year 100000 vouchers are consumed system gives a message we give available numbers 300001-400000 Path:SPRO-Financial accounting-Financial accounting Global settings Document Document Header-Define Document Types (Tr.code:OBA7) Select position button

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Document type select GL Account document Enter Select type

: SA

:SA

Select details button (Ctrl+Shift+F2) Number range :01

Select number range information button Give the company code Select change intervals button () Select interval button No.range Year From number To Number Current number Deselect external(Ext) check box If we select external check box, we have to give at the time of posting what should be the document number. Select press enter. Select save button or Ctrl+S Ignore warning message press enter Number range interval cant be transported to production client what ever number for development client for testing. 1. Consultant is an outsider he does not know how many document numbers are required for each area. 2. All the departments want to have 1100000 which is not possible. In live environment, before going live all the department heads sit together and decide for production client. What should be FI document number What should be MM document number What should be SD document number. SAP have given two options. :01 :2008 :1 :100000 :0 : AML

32

Opetion1: Year specific 01-2007-1-100000 500000 500001 01-2008-1-100000 3000 3001

Option 2: Common to all years 01-9999-1-100000 53000-53001-53002

1st Entry Date:24.09.2008 Posting date:24.09.2008 2nd Entry Entry date:29.09.2008 Posting date:31.03.2008 Note: companies follow 1st option.

9999 means any year in 2nd option we dont know how many

Documents we have posted for each year

Field status variant and field status groups At the time of posting on screen we get around 70 fields. Fields are quality, text (Narration), business area, value date Debit Credit 70 Filed 70 Filed -----140 Filed ==== If we start filling up all the fields it takes so much time to post one document.

SAP has given a facility to make any filed as 1. 1. 2. Suppress 2. Required 3. Optional

Suppress: The filed will not be visible on screen a the time of posting. Required: We have to enter values to the field compulsory. The field value will appear with question mark or tick mark-without entering the values we can not go to next screen. Optional: The field will be visible on screen our choice to enter values or not the fields selection is not common to all accounts. It depends on the account what we are using. In case of sales account quantity filed is required. In case of repairs account quantity filed is not required, we have 1000 accounts we have

3.

33

to create 1000 scenarios. In stead of creation of 1000 scenarios SAP have given field status groups. Filed status Group Repairs A/c Equity share capital Sales A/c Purchase A/c Cash A/c Bank A/c General Suppress required optional

materials quantity select Bank Accounts cost Accouts

1. When we create accounts we have to assign field status group. 2. For filed status group we is field is suspected and which filed is optional. 3. At the time of posting by the user-he gives the account number the screen will appear based on the fields selection to the field status group which is assigned in account number. 4. Filed status groups are created under field status variant and field status variant is assigned to company code / codes. Afterwards: Cash account Dr To Equity share capital Bank accounts | Value date text Business area | Required Entry General ^ Text Business area | Required entry Screen layout at the time of posting Path:SPRO- Financial accounting Financial global settings Document Line item-Controls- Define filed status variants Select field status variant 1000 that is IDES group Select copy as button (F6)

34

Change filed status variant (FSTV) to AML Change field status name to field status VAR for AML Press enter Select copy all button We get a message number of dependent entries copies 47 Enter Select save button or Ctrl+S Select your request and press enter to save in your request. Select field status variant : AML

Double click on field status groups folder Double click field status on G001 that general (with,text, allocation) Double click on General data Text make it required entry filed Select next group button Select next page or page down button two times. Business areas make it as required entry field Save Double click on field status group G005 That is Bank A/c obligatory value date Double click on General data Text make it as required entry field Select next group button Select next page or page down button two times. Business area make it as required entry field. Select next group button two times, Value date make it as required entry filed. Save. Value date( Effective date): Term loan from IDBI :20.09.2008 Deposit by us in our bank :22.09.2008 Document date :22.09.2008

35

Posting date

:22.09.2008

In SAP we have interest calculations, Interest calculations in our book from 22.09.2008 where as IDBI calculates from 20.09.2008. There will be mismatch. Interest calculations: Value date :Required entry filed Document date :22.09.2008 Posting date :22.09.2008 Value date: 20.09.2008 field is modifiable after posting . In our books also interest will be calculated from 20.09.2008 Value date DOC & POS :31.08.2008

Assign company code to field status variant : Path: SPRO-Financial accounting-Financial accounting Global settingsDocument Line time-Controls-Assign company code to field status variants. Select position button Give the company code Enter For company code :AML :AML

Assign field status variant :AML Select save button or Ctrl+S Press enter to save in your request

36

SALES TAX PROCEDURE General ledger, Accounts payable, Accounts receivable and Assets accounting Basic Excise VAT /CST To do normal posting also, sales tax procedure is required. A) Create procedure B) Create tax codes C) Create accounts D) Design accounts Assign for country in-tax US ( Sales tax USA) Tax IN (sales tax India) Temporary assignment For our company any code: Country IN Note the path this one SPRO-Financial accounting Financial accounting global settings-Tax on sales / Purchases - Basic settings - Assign country calculation procedure Select position button Give the country IN for India Enter For country IN assign procedure TaxUS Sales Tax USA Select save button or Ctrl+S Press enter to save in your request. TOLERANCE GROUPS: This is two types 1.GL Accounts a) Receipts / Payment transactions b) Mandatory area Retained area called open item management. This is used for vendors, customers and balance sheet accounts where clearing is required. Outstanding expenses A/c Salaries Bank 15000 Rent Wages

2.Employee

500000 15000 100000

37

If we see the account in the month end or year end-we will have no of credits and no. of debits. We dont know which item is pending and how much is pending. As per SAP open item management At the time of making payment System will as against which provision we are making the payment. When we specify the payment is being made against rent provision. It clears the transaction. The advantage is we can see the account in 3 ways. 1) If we select open items payable Eg.Salaries and Wages. 2) If we select cleared items :paid Eg.Rent and bank 3) If we select all items: Payable + paid The same way we use for vendors and customers and also. Vendors X A/c Bank For 1 100 Bank For 2 200 Bank-For3 300 Bank for 4 400 Bank for 5 500

1 2 3 4 5

1000 2000 3000 4000 5000

Bill wise out standings we can see for vendor. We can have tolerances (payment differences). It can be amount tolerance or percentage tolerance or both it can be debit amount or credit amount. Outstanding expenses A/c Salaries Rent Bank 15000 Wages Bank 100000 Commission

500000 15000 100000 100005

There is difference of Rs.5 in the account for commission which need not be paid. We can difference tolerances. Tolerance Group A B

Amount 100

percentage 5%

A) We have to assign tolerance group in account in outstanding expenses A/c we have assigned tolerance group A

38

B) At the time of making payment system checks Provision 100005 Payment 100000 Difference 5 If the difference of Rs.5 is within tolerance group amount. i.e.100 system will clear the provision and transfer to sundry balances written off account at time of making payment. Disadvantages: 1. Tolerance group is given at account level and not at the transaction level. Outstanding expenses A/c. Salaries 500000 Diff to give 200

Bank

15000

Rent Wages

15000 100000

15 500 100

Bank

100000

Commission 100005

2. There is not flexibility amount percentage tolerance group. A 100 B 5% C 0 Outstanding Expenses A/c. Salaries Rent Wages Commission 500000 15000 100000 100005

Bank 15000 Bank 100000

If we give tolerance group A in outstanding expenses account if the difference is less than tolerance group amount and transferring sundry balances written of account automatically. When we give tolerance group C instead of A in outstanding expenses account. Outstanding expenses A/c. Bank 100000 Salaries 500000

39

Bank Bank Provision Payment Difference Not payable Transfer 5

15000 100000 100005 100000 ----------5 =======

Rent 15000 Commission 100005

payable Now Rs.100000 as part payment

To sundry balances off a/c and clear the transaction. This is mandatory area. Tolerance Group A B C Amount 100 0 Percentage 5%

Bank

Instead of crating group C - keep the filed blank and give amount zero. While creating 1000 GL accounts, Vendor accounts and customer accounts. Keep tolerance group field blank, system expects we have created blank Tolerance group and already assigned. For our company code: we are creating bank tolerance group wit amount zero so that no need to assign. Tolerance group while creating the accounts. Path :SPRO Financial accounting General Leger Accounting Business transactions-open item clearing clearing difference- Define tolerance groups for G/L Accounts Company code Tolerance group Description Debit posting Credit posting Debit percentage Credit percentage Save : AML :Blank :Tolerance group for AML :0 :0 :0 :0

Select your request and press enter and save in your request. Tolerance group for employees.

40

User wise upper limits for posting Tolerance Group A 100000 100000 C 10000000 Amount per document 10000000 Amount per open item account item 0 5 10 Cash Discount 0 0 0 Payment Differenced We have 1000 users distance we have to create 1000 scenarios (short cut method) Accounts Dept: 1. City office cashier 2. Factory cashier 3. Branch cashier 4. Account 1 A 5. Account 2 6. Deputy Manager Accounts 7. Manager Accounts 8. DGM Accounts In live environment / training institutes SAP User SAP User SP user AML XYZ ABC B 100000 100000

B C

A Use only Use only

Blank A A

Path: SPRO-Financial Accounting General Ledger Accounting Business transactions Open Item clearing - Clearing differences Define tolerance groups for employees. Select new entries button Group : Blank Company code : AML Upper limits for posting Amount per document (Maximum Amount 9999999999) Amount per open item account item 9999999999 cash discount per line item 10 Permitted payment difference : Blank Save Press enter to save in your request. ENTER GLOBAL PARAMETERS: Path :SPRO-Financial accounting -Financial accounting global settings-Company code-Enter global parameters Select position button Give the company code

:AML

41

Enter Select company code Select details button (F2)

:AML

Select business area financial statements check box Select propose fiscal check box Select define default value date check box Select negative posting permitted check box Select addition data button Company code : AML Business Area : HYD BGL Business place :City factory City office Factory Permanent Account No. (PAN) At company Code level(Form 49A) 10 Digits Alpha numeric code Tax Deduction at Source No (In SAP TDS No. / TAN) Form 49B -10 Digits alpha numeric code At company code level / business area level / at business place level (GIR No.: General Identification Number) TDS No.ABCDE 35467N PAN NO.BBBBB5678N Select back arrow, then Save Press enter to save in your request

Negative postings: In case of reversals if we select negative postings check box it reduces from the same side. In SAP, when we post a wrong entry, we cant change the document. We have to go for reversal or pass rectification entry. 1. Equity share capital receipt: Cash account Dr To Equity share capital 2. Preference share capital receipt: Cash account Dr To Equity share capital

400000 400000 Doc.No.1

100000 100000 Doc No.2

Reversal

42

3. Equity Share capital To Cash account

Dr

100000 100000 100000 100000 Doc No.4 Doc.No.3

4.Cash Account Dr To Preference share Capital Rectification 3. Equity share capital Dr To Preference Share capital

100000 100000 Doc.No.3

Account No.100000 Company code Fiscal year Period 1 2 3 4 5 6 7 Debit Amount

Ledger summary AML 2008 Credit Amount Balance Cumulative Balance

100000

500000 -100000

400000 Cr

400000 Cr

1 Cash flow statement Reversal without selecting negative postings Opening cash and 0 bank balances Add: Inflows Equity share capital 500000 Preference share capital Less:Out flows Equity share capital Closing Cash and bank balances 100000

2 Reversal by selecting negative postings 0

3 Rectifications

500000 100000 500000

100000 50000 wrong 500000 correct 500000 Wrong

43

To check transport request:: Path: Tools ABAP work bench-Overview-Transport Organization (Tr.Code :SE09) Enter Select find request (Ctrl+F) Execute Find company code (Ctrl+F) Double click on define company code GENERAL LEDGER MASTERS CREATIONS 1 Chart of Accounts level 1 2 GL Account Number Company code 2 Company code level Account currency Only balances in local currency 3 Centrally

Chart of accounts fields

3 4. 5 6.

Account group Whether it s P & L Account Whether it is a Balance Sheet A/c Description a) Short text Max 20 b) Long text Max20

Tolerance group Line item display Open item Management Sort key

+ Company code fields

Field status group

Accounts to be created: 1. Surplus in P & L Account Reserves & Surplus 2. Equity share capital Share capital 3. Cash account current assets, loans & advances To check accounts groups for giving account numbers. Path: SPRO Financial Accounting General ledger accounting GL Accounts Master Data- Preparations- Define Account group (Tr.Code:OBD4) Select position button Give your chart of accounts AML 44

Enter Reserves & Surplus Share capital Cash account-current assets 100100-100199 100000-100099 200100-200199

1. To check account-Group for giving account numbers. 2. Creation of General CREATION OF GENRAL Path : Accounting-Financial accounting General Ledger-Master records GL Accounts-Individual Processing Centrally (Tr. Code is FS00) Give the GL account 100100 Company code AML From the menu select -> GL Account create Account group: select reserves & surplus Select balance sheet account radio button Short text: surplus in P & L Account GL Account Large text: Surplus in profit & Loss Account Select control data tab Select only balances in local currency in check box We have Tolerance group: Blank Select line item display check box Short key select 001 posting data Select create / bank / interest Field status group G001 General (with text, allocation) Save GL Account Company code Select with template button GL Account Company code :100100 (Surplus in P & L Account) : AML :100000 : AML

45

Enter By mistake save button Your can not save Change account group to Share capital Select balance sheet a/c radio button Change short text to equity Share capital Change GL account long text to Equity share capital Other filed common select save button GL Account 200100 Company code Select with template button Give the GL Account 100100 surplus in P & L account Company code Enter Change account group to current assets, loans & advances Change short text to Cash account Select balance sheet a/c radio button Change GL account long text to Cash account Select create / bank / interest tab Change filed status group to G005 bank accounts (Obligatory value date) Select relevant cash flow check box, Select save button or Ctrl+S To view the accounts created Select drop down button beside GL account Match Code: Give the company code Enter Short text GL account long text : AML :AML

: AML : At the time of entry : At the time of General ledger display

46

Posting of transactions Path: Accounting Financial Accounting General ledger posting General posting (Tr.Code is F-02) Posting transaction Document date selects todays date . Posting date : Ledger updation will be based on posting date period will :10/07/2008 : In case of purchases document date will be party bill date-

we can enter manually 30.09.2008 or select F4- It gives calendar and select F-2 It

appeal automatically based on Posting date Reference Doc No Normal cases Document date (F4) :30.09.2008 : 30.09.2008 :Party bill No. :1

Posting date: will come automatically this is server date. Type Company code Currency :SA :AML : INR

System does not know debits and credits to differentiate between debit and credit SAP Has given posting keys Posting key Positing key 40 50 GL account Debit GL Account Credit

Posting key: Select 40 Account select the drop down button GL long text Company code GL Account Enter Select account No.200100 Enter :*Cash* : AML : Z*

47

200100 Cash account Filed status GRP-G005 Text Value date Required In enter global parameters select define default value date check box Amount :400000 Business area :AMLH Text : Equity share capital receipt Posting key : Select 50 Account select drop down button Give the company code AML and press enter Select account :100000 Equity share capital Press enter Amount enter :*(star) Note: * (star) Means debits and credits equal Cash A/c Dr 500000 To Equity 300000 To Preference * Business area :AMLH Text Enter :+ + (plus) mean copies the last line item narration in the same document. Salaries A/c Dr (Salaries provision for Sep.) Wages A/c Dr (Wages provision for Sep.) To outstanding Exp We can not use * Press enter From the menu select document simulate (Shift +F9) In one document we can have 999 line items. Debit will be posted without any assign and credit amount will be posted with minus sign. Select save button or Ctr+S We get a message document 1 was posted in company code:AML How to view the last posted document 1. From the menu select document display. 100000 Business Area

48

Select display document header button or (F5) Display document Path: Accounting Financial accounting General ledger-Document Display (Tr.Code:FB03) Select document list button Give the company code Document type Select executive button (F8) To view last one week posted document 24/09/2008 to 1/10/2008 :AML :SA

Select execute button To view self (documents posted by us) Select own documents only check box To view documents posted by a specific user From the menu select > Edit > Dynamic > Selections (Shift +F4) User name :SAPUSER Select execute (F8) button Double click on document no.1 Change document : Path: Accounting Financial Accounting General ledger-Document Change (Tr.code is FB02) Document No. Company code Fiscal year Enter Double click on first line item cash account We can change only value date filed assignment filed and text filed. :1 :AML :2008

49

Account display: Path: Accounting Financial Accounting General ledger Account Display balances ( Tr.code is FS10N) To view more than one account transactions select multiple selection button beside GL Account no. We want to view random account numbers transactions. Press select single value tab. Give the account no.100100 200100 Select copy button To view continuous account numbers transactions Press select intervals tab Low limit :100000 Upper limit :100099 Select copy button Account no.100050 To exclude an account from the range Select exclude single value tab Singe value : 100050 Select copy button To exclude a range of accounts Low limit Upper limit Select copy button To view only one account Select drop down button beside GL Account Give the company code Enter Select account no.100000 Equity share capital Company code :AML :AML :select exclude intervals tab :100050 :100059

50

Fiscal year Business area Select execute (F8) button

:2008 :AMLH

Double lick on cumulate balance amount Double click on document No.1 Select call up document overview button (F9) Select back arrow (F3) Document Number 1 2 3 Posting date Text Amount 100000 200000 300000 ----------Total Amount 600000 ======

We can create our own line layout How to create our own line layout: Select change layout button (Ctrl+F8) Select the filed which are not required Select right arrow or hide selected fields button From hidden fields column Select posting date Select left arrow show select fields button change column positions Column Document No. Amount in local currency Text Posting date Pos 1 4 3 2 Length 10 20 35 10

Change text length 35 characters for amount in local currency select total check box Select copy button How save the layout: Select save layout button (Ctrl+S) Option 1 Common to All A) Deselect user specific Check box B) We have to save with any number or name Layout : / AML Deselect user specific check box

Option 2 User specific A) Select user specific check box B) we can save will any number or Name

51

Description : Standard layout for AML Select save button Select back arrow two times Execute Double click cumulate balance amount How to choose our layout: Press select layout button (Ctrl+S) Select : AML How to make default line layout: From the menu select settings layout - Administration Keep the cursor on /AML Select define default setting button Save Select back arrow three times Give the account no.200100 cash account Execute (F8) Double click on cumulative balance amount Hold Document: It is a temporary document This is user for adjustment purpose or at the time of posting we do not know either debit or credit. This document can be deleted there is no tracking for this document. A) Loans to Directors Create as hold document an once he gives money back delete the document. B) Payment to a party purpose of payment we dont know Cash balance = Account balance +/ Hold documents Hold documents will not update records Steps: 1. Run a program called RFTMBLU for conversion of hold documents 2. Creation of hold documents 3. Delete / complete hold documents

52

1.

Run a program called RFTMBLU for conversion of hold documents

Path : Tools ABAP Workbench- Development ABAP Editor (SE38) Program : give the program name :RFTMBLU Select execute button Select no. termination for read error check box Execute 2. Creation of hold documents Use the transaction code (F-02) Document date Type Company code: AML Posting key Account no. Enter Give the amount Business area Text : 5000 :AMLH :Amount paid to Mr.X :50 :200100 (cash account) : Today date :SA

From the menu select document hold Tem parry document No. :AML Select hold document button We get a message document AML was held Second F-02 Give the document date: Today date Type Company code Posting key :SA :AML : 40

Account 200100 (Cash account) Enter Give the amount 20000 Business area :AMLH

53

Text Posting key:

: Hold document testing : 50

Account no.: Enter Amount enter Business area Text

100000 (Equity share capital)

:* (Star) : AMLH :+

From the menu select Document > Hold Give the temporary document no. 123456 (give any number) Select hold document button 3. Delete / Complete hold document (F-02) Use the transaction code f-02 From the menu select Path :Document Get held document Select document list button Keep the cursor on document number 123456 Select delete button select yes button select back arrow (F3) select document list button Keep the cursor on document no. select choose button Give posting key Account no. Enter Amount Enter Business Area Text :*(Star) : AMLH :+ :40 :100000 Equity share :AML

From the menu select document Simulate and save

54

Park Documents : This is used for approvals Cashier Enter the document he will park in the system Informs to SR person SR person he can make changes approval to the document form amount / Date / head of account before release And release document Once he release the document will be posted and updates records

Accounts will not be updated Account will not be updated

Steps: 1. Posting of packed document by cashier 2. Informed to Sr. person for release Be cashier 3. Display packed document and change date and amount 4. After change, inform to Cashier about approval 5. Display changes to packed document 1. Posting of Packed Document Path : Accounting Financial accounting General Ledger- Posting-General document parking (F-65) Give the document date Document type Company code Posting key Account Enter Amount Business area Text Posting key: Account Enter Amount enter Business area Text : *(Star) :AMLH :+ :9999 : AMLH : park document testing :50 :100000 (Equity share capital) : Today date : SA : AML :40 :200100 (Cash account)

55

From the menu select Document Park document 2. Informed to Senior Person for release From the menu select system >short message Give the title : Please release Doc.No.3

Receipt user id of Senior person (sap user) Recipient type : Select SAP logon name

Select express mail check box (Screen down right side) Select send button (Shift+F8) From the menu select system > Create session 4. Display packed document and change date and amount Path :Accounting Financial accounting General ledger-Document parked documents- post / delete (FBV0) Select document list button Give the company code Enter by user ID Execute (F8) Double click on document no.3 To change the date Select document header button Change document date and posting date to 5.10.2008 Select back arrow Select fast data enter button Change amount 6000 Debit 6000 Credit Select back arrow From the menu select document post Inform to cashier about approval From the menu select System >Short message. Title document no.3 released :AML :Cashier

56

Recipient User Id of Cashier Recipient type Select SAP logon name Select express mail check box Select send button (left side upper) From the menu select system > Create session 4 .Display changes to packed document Path: Accounting Financial accounting General ledger-Document - Parked Documents-Display changes (FBV5) Company code : AML Document No :3 Fiscal year :2008 Enter Select all changes button Sample document: This is used for month end provisions Salaries A/c Dr. 100000 Rent Dr 50000 Wages Dr 500000 To outstanding 650000 Create a sample document and store in the system every month by coping sample document number and by changing date and amount we an post the provisions we will not forget any provisions. Steps: 1. Create 3GL masters A) Salaries A/c Personnel cost B) Rent A/c Administration C) Outstanding expenses Current liabilities & Provision 2. Difference no.range interval for no.range X2 3. Creation of sample document 4. posting of transaction by copying sample document To check account groups for giving account numbers. The transaction code is OBD4 Select position button Give the chart of accounts : AML

57

Enter The personnel cost is 400100-400199 Administration range 400300-400399 Current liabilities & Provision range is 100500-100599 Creation of GL masters (FS00) Give the GL Account 400100 Company code Select with template button Give the GL Account 100000 (Equity share capital ) Company code Enter Change account group to personnel cost (Staff cost) Select P & L statement radio button Change short text to Salaries A/c Change long text to Salaries A/c Other fields are common Select save button or Ctr+S GL A/c No: Company code Select with template button Give the GL account Company code Enter Change account group to Administration Change short text to Rent account Change long text to Rent account Other fields are common Select save button or Ctrl+S GL Account Company code Select with template button :100500 :AML :400100 salaries :AML .400300 :AML :AML :AML

58

Give the GL account Company code Enter

:100000 (Equity share capital) : AML

Change account group to Current liability & Provisions. Change short text to Outstanding express Change GL Account Outstanding express Select control data tab Select open item management check box Save Define no. range interval for no. range X2: Path: SPRO Financial accounting Financial accounting global settings Document Document number ranges- (Tr.Code is FBN1) Give the company code :AML

Select change intervals button Select interval button No. range Year From number To number Enter & Save Ignore the message press enter Creation of sample document Path: Accounting Financial accounting General ledger - Posting Reference documents Sample document (F-01) Document date Posting date Type Company code Posting key Accounting :30.09.2008 :30.09.2008 :SA :AML :40 :400100 (salaries a/c) :X2 :2008 :500001 :500100

59

Enter Ignore the warning message ,press enter Amount Business area Text Posting key: Account Enter Account Business area Text Posting key: Account no. Enter Amount enter Business area Text :* :AMLH : Provision for the month :75000 : AMLH : Rent provision for the month :50 :100500 (out standing exp) :500000 : AMLH : Salaries provision for the month :40 :400300 (Rent account)

Select save button or Ctrl+S We get a message document 500001 was stored in company code : AML 5. Posting of transaction by coping sample document : F-02) From the menu select document post with reference. Give the document no. Company code Fiscal year Select display line items check box Enter Change the document date Posting date Enter Ignore the warning message press enter :31.10.2008 :31.10.2008 :500001 :AML :2008

60

Change the amount to 600000 Text Amount Enter Line item having zero will not update records Ignore the warning message Amount enter For text :*(star ) : Add October :Add October (Salaries for the month of October) :0

From the menu select document simulate Select save button or Ctrl+S Month end provisions: Option 1: Accrual / Deferral document Option 1: Accrual Deferral document 31.10.2008 Salary provision Salaries Dr To out standing Option 2 Open item management

100000 100000

01.11.2008 reversal next month 1st Outstanding Dr To Salaries 05.11.2008 Payment of salaries Salaries Dr To Bank

100000 100000

105000 105000

31.10.2008 05.11.2008

Salaries A/c 100000 105000

01.11.2008

100000

61

01.11.2008

Outstanding Expenses A/c 31.10.2008 100000

100000

Profitability effect:: For October 100000 For November because October 5000 Option 2: open item management 31.10.2008 Salaries provision Salaries Dr To out standing 05.11.2008 Salaries payment Out standing Dr Salaries Dr To Bank 100000 100000

100000 5000 105000

Salaries A/c 31.10.2008 05.11.2008 100000 5000 Outstanding Expenses A/c 31.10.2008 01/11/2008 100000 100000

Profitability effect For October For Nov. because of October salaries

100000 5000

Companies follow 1st option (other than year end) In case of option 2 the person who makes the provision is accountant and the person who is making the payment and clearing is Cashier - Cashier has to track the provision and clear against the provision. Option 1: Accrual / Deferral document : Steps 1.Creation of reversal reason and reversal reason should allow us to reverse on any day. 2. Enter accrual / Deferral documents A) Rent Provision 08.10.2008 B) Salary provision 31.10.2008 3.Reversal of accrual / deferral documents in one step

62

1.Creation of reversal reason and reversal reason should any day. Path : SPRO- Financial accounting General ledger accounting-Business transactions Adjustment posting / Reversal - Define reason for reversal Select new entries button Reason :11 Text : Real / Deferral Reversal reason for AML Select neg. posting check box Select alternative position date check box Select save button or Ctrl+S Save in your request If we do not select alternative posting date check box 31.10.2008 Salaries Dr To out standing System will allow you to reverses only 31.10.2008 We want to reverse next month 1st select alternative posting date check box Rent provision: Path : Accounting Financial Accounting General ledger Periodic processing Closing Valuate- Enter Accrual / Deferral Document (Tr.Code is FBS1) Document date Type Company code Reversal reason Reversal date Posting key Amount Enter Amount Business area Text Posting key :50000 :AMLH : Rent provision for October :50 : Today date :SA : AML : Select 11 :1.11.2008 (next months) :40 :400300 (Rent A/c)

63

Account no. Enter Amount Business area Text

:100500 (out standing exp)

: *(star) : AMLH :+

From the menu select document >Simulate and save Salaries provision: Tr.Code is FBS1 Document date Posting date Type Company code Reversal reason Reversal date Posting key Account Enter Ignore the warning message press enter Give the amount Business area Text Posting key Account Enter Amount Business area Text :* :AMLH :+ 100000 AMLH :Salaries provision for the month of October 50 :100500 (outstanding exp.) :3110.2008 :31.10.2008 :SA :AML :11 :01.11.2008 :40 :400100 (Salaries A/c)

From the menu select document > Simulate and save

64

Reversal accrual / Deferral document : Path : Accounting Financial Accounting General Ledger Periodic processing Closing Valuate Reverse accrual / Deferral Document (Tr.Code is F.81) Give the company code Reverse posting date Select text run check box Execute (F8) Select reversal documents button Select back arrow OPTION 2 : Open Item Management This is used vendors customers / Balance Sheet items where clearing is required. We have to select open item management check box While crating the GL accounts Out standing Expenses Salaries A/c Wagers A/c Bank 25000 Rent a/c : AML :01.11.2008

500000 300000 25000

We can see the account in 3 ways 1. Open items: Payable Salaries and wages 2. cleared items : Paid rent and bank 3. All items : Payable + paid

3. Scenarios 1st Scenario Full Clearing Provisional and payment Same amounts

2nd Scenario Partial clearing

3rd Scenario Residual items method

A) Rent Provision (Transaction code F-02) Document Date & posting date :13.10.2008 Type Company code : SA : AML

65

Posting key Account no. Enter Give the amount Business area Text Posting key Account no. Enter Amount Business area Text

:40 :400300 (Rent A/c.)

:15000 :AMLH : Rent provision :50 :100500 (outstanding exp)

:* (enter star) :AMLH :+

From the menu select Document > Simulate and save B) How to view open item managed account transactions: Path : Accounting Financial Accounting General Ledger- Account Display / Change line items (Tr. Code is FBL3N) Give the GL Account Company code Select open items radio button Select normal items check box Execute (F8) OUT GONG PAYMENT WITH CLEARING: Path : Accounting Financial Accounting General Ledger - Posting Out going payments (F-07) Give the document date Type Company code Clearing text Account Under bank data : Todays date : SA : AML : outgoing payment :200100 (Cash A/c.) :100500 (outstanding exp) : AML

66

Business Area Amount Text

:AMLH : 15000 : Outgoing payment

Account under open item selection :100500 (out standing expenses) Amount type Select process open items button Reversed documents will not appear for clearing: Double click on payable amount 15000 Document > Simulate and save Go and see open item account transactions Tr.Code is FBL3N Give the GL Account no Company code :.100500 (outstand expenses) :AML : Todays date : S(S is default) (S: Stands for GL Accounts)

Select cleared items radio button Clearing data

Select normal items check box Execute (F8) Select back arrow Select open item radio button Execute (-*- This symbol is open item(document no. below)) 2nd Scenario Partial Clearing 3rd Scenario Residual items method

When we make part payment we can use either partial clearing or residual items method.

Out standing exp. OI Rent 40000 Cr Cash 5000 Dr ------35000 Cr =====

Outstanding Exp. OI Rent 30000 ------28000 Cr =======

28000 Cr

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CI : Rent 30000 Cr Rent 30000 Cr -------------0 =====

A) Rent Provision Rent To Outstanding

Dr 40000 40000

A) Rent Provision Rent A/c Dr Outstanding

30000 30000

B) Part payment Out standing Dr 5000 To Cash 5000

B) Payment

Rs.2000

Outstanding Dr 30000 cleared To Cash 2000 To Outstanding 28000

Residual: Balance payable Note : OI means Open Items CI Means Cleared Items Companies follow 1st method

We test how to view bill wise outstanding: Rent Provision F-02 Document date Type Company code Reference Posting key Account No. Enter Amount Business Area Text : 40000 : AMLH : Rent provision : Today date : SA : AML :3456 :40 :400300 (Rent a/c)

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Posting key Account No. Enter Amount Text :+

: 50 :100500 (Outstanding exp.)

: * (enter star)

From the menu select Document Simulate and save

Out going payment using partial clearing method: ( Tr. Code F-07) Document Date Type Company code Reference Clearing text : Todays Date : SA : AML : 3456 :Outgoing payment

Account under bank data: 200100 (Cash a/c) Business area Account Text : AMLH : 5000 : Outgoing payment

Account under open item selections 100500 (outstanding exp) Select process open items button Keep the cursor on the amount filed of line item against which we want to adjust. Select partial payment tab Creates payment amount column Double click amount 40000 Double click on payment amount 40000 From the menu select Document >Simulate Gives a message correct the marked Line items Double click on blue font line items Text enter :+

Select save button or Ctrl +S

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Go and see open item account transactions The Transaction is code is FBL3N Give the GL account Company code :100500 (outstanding Exp.) : AML

Select open items radio button. Select normal items check box Select execute button To view bill wise outstanding Select change layout button (Ctrl+F8) From the hidden fields column Select reference field Select amount in local currency under column contain. Select left arrow or show selected fields button Select copy button Keep the cursor on reference Select sub total button To make balance payment of 35000 and cleared provision and part payment (F-07) Give the document date Type Company code Reference Clearing Text Amount under bank date Business Area Amount Text Account Account type : Todays date : SA : AML :3456 : Out going payment :200100 (Cash A/c) :AMLH :35000 : Outgoing payment : Under open item selection 100500(out standing exp) :S

Select process open item button

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Double click on provision 40000 Double click on part payment 5000 From the menu select document > Simulate and save Go and see open item managed account transactions (FBL3N) Give the GL Account o. Company code :100500(out standing exp) : AML

Select cleared items radio button Select normal items check box Execute Residual items method: Rent provision F-02 Give the document date Type Company code Posting key Account no. Enter Amount Business area Text Posting key Account no. Enter Amount Business area Text :* : AMLH :+ :30000 :AMLH : Rent provision :50 :100500 ( outstanding exp) : Todays date : SA : AML : 40 :400300 (Rent account)

From the menu select Document ->Simulate and save

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Out Going Payment Using Residual Items Method: (F-07) Give the document date Type Company code Clearing Text Account under bank date Business area Amount Text Account type Select process open item button Account : Under open item selection 100500 (out standing exp) : To days date : SA : AML : out going payment : 200100 (Cash a/c) : AMLH :2000 : out going payment :S (default comes)

Keep the cursor on the amount filed of the line item against which we want adjust. Select residual items tab It creates residual items column Double click on next amount 30000 Double click on residual items amount From the menu select Document > Simulate It gives the message correct the marked line items. Double click on blue font line item. Text enter Save Go and see the open item managed account transactions (FBL3N): Give the GL Account no. Company code Select open items radio button Select normal items check box Execute :100500 (out standing exp.) : AML :+

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FOREIGN CURRENCY TRANSACTIONS 1. Check exchange rate type Bank buying Bank selling Exports Imports / Expenditure G type B type

Average rate MM /SD users type Path : SPRO-SAP Net weaver- General Settings Currencies Check exchange rate types Select position button Exchange rate type: B (enter B) Enter Define translation rates for currency translation: Giving conversion factors for two currencies: USD 1 JPY 100 ERO 1 GBP1 ITL1 JPY 100 Or 1 : 0.01 0.37 Once we follow one conversion factor follow continuously for all the years. Dont change in between if we change in between it gives wrong results. This is given at client level and not at company code level (Client 800) Path: SPRO SAP Net weaver- General settings Currencies Define translation ratios for currency translation Ignore the message select yes button. Select new entries button : : : : : : INR 1 INR 1 JPY=Japanese - Yen INR1 INR1 GBP=Great Britain -Pound INR1 ITL=Italian -Lira INR1 37Rs

Exchange rate type G (Bank buying) B (Bank selling) M (Average rate)

From USD USD USD

To INR INR INR

valid (from) 01.10.2008 01.10.2008 01.10.2008

Ratio (from) 1 1 1

Ratio (to) 1 1 1

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Select save button or Ctrl+S Press enter to save in your request. Enter exchange rates: Path: SPRO- SAP Net weaver- General settings- currencies Enter exchange rates Forex Table We can enter Daily quotations / Week end quotations / Month end quotations. For each day end for each type we can enter only one rate. Select new entries button Exchange type G B M Valid from 10.10.2008 10.10.2008 10.10.2008 R 1 1 1 From currency USD USD USD Director quotation 47.00 47.50 47.10 To INR INR INR

Press enter and save in your request. Exchange rates entry at the End User Area: Path: Accounting Financial accounting General ledger-Environment Current settings Enter translation rates (S_BSE_68000174) Foreign currency postings for end user area:

SCENARIO :1 When exchange rate is not entered at the time of posting.

SCENARIO 2 When exchange rate is entered at the Time of posting

a. IF we dont enter the rate at the time of posting, it takes rate from Forex table b. If take the latest date rate 01.10.2008 45 10.10.2008 47 Enter date :15.10.2008 Posting date :09.10.2008 c. To enter default exchange rate type based on document type.

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General ledger posting Purchase INV posting (FI purchases) MM Purchases Sales invoice posting (FI Sales) SD sales If we do not specify system takes average rate.

: SA Bank selling rate :KR Bank selling rate :RE Bank selling rate DR Bank buying rate RV Bank buying rate

1. To enter default exchange rate type B (Bank selling rate) for document type SA Use the Tr. Code is OBA7 Select type : SA Select details button Under default values exchange rate type for foreign currency documents. Select B (Bank selling rate) Save 2. Posting of expenditure in USD F-02 Give the document date Type Company code Currency Rate Posting key Account Enter Give the amount Business area Text Enter Posting key Account Enter Amount :* : 50 :200100 (cash account) :1000 : AMLH : Salary payment : To days date : SA :AML : USD : Blank :40 : 400100 (salary)

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Business area Text

: AMLH :+

From the menu select Document ->Simulate

To view in INR Select display currency button Save

When exchange rate is extend at the time of posting Expenditure posting Tr.Code is F-02 Document date Type Company code Currency Rate Posting key Account no. Enter It gives the warning message exchange rate 50 deviates from table rte 47.50 by 5.26% Ignore the warning message press enter Amount Business area Text Enter Posting key Account no. Enter Amount Business area :* :AMLH :50 :200100 (Cash account) :10000 USD : AMLH : Salary payment : To days date : SA : AML : USD :50 :40 :400100 (salary account)

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Text

:+

From the menu select Document ->Simulate and save REVERSELS: 1. Individual Document Reversal 2. Reversal of Reversed document 3. Mass Reversal 4. Clearance Items Reversal 5. Account Deferral document reversal 1. Individual Document Reversal A) To reverse one document at the time B) To give reversal reason C) At the time of reversal, it we do not give reversal date it takes original document posting. Date incase, that period should be open 1. Document posted on 10th April 2008 Doc.No.1 Generated 2. Now, we have open the periods from September 2008 to October 2008 6,2008 7,2008 3. Ledger scrutiny - Doc.No.1 is wrong

Document No. Reversal reason Reversal date Save

Blank

It takes original document posting date 10/04/2008 It can not reverse, since the April period is not open Path : Accounting Financial Accounting General ledger Document Reverse Individual Reversal (FB08) Give the document no. Company code Fiscal year Select 01 reversal reason Posting date : Blank :1 :AML :2008

Select display before reversal button Select back arrow Select save button or Ctrl+S

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From the menu select Document >Display Select Go to Display document Head button (F5) Double click on document no.1 Select display document header button 1. Posted Documents 1 2 3 4 5 6 Reversal for 1 7 Reversal for 2 2. Document type and no./ranges : OBA7 Select type : SA Select details button Number range :01 Reversal Doc.type : AB 3. Document display Company code Doc. Type : FB03 : AML : SA original documents AB Reversed documents

2. Reversal of Reversed Document Indirect method (work around) To reverse Doc No.2 By mistake we have reversed Doc.No.1 and it has generated Doc.No.18 Use transaction code F-02 From the menu select post with reference Give the document no. Company code Fiscal year :18 :AML :2008

Select generate reverse posting check box Select display line items check box Enter Enter once again Change the text to reversal for Doc No.18 Enter

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Text Enter Save

:+

Enter From the menu select Document ->Display Select display document header button 3. Mass Reversal A)To reverse more than one document at time we use mass reversal. B) The documents to be reversed can be continuous numbers or random numbers. Path: Accounting Financial accounting General ledger Document Reverse Mass reversal (F.80) Give the company code : AML To reverse random numbers Select multiple selection button beside document no.(-->) Under single values Give document no .2 4 Select copy button Reason for reversal 01 Select test run check box Execute Select reverse documents button Cleared Items Reversal 1. Go and see open item managed account transactions (FBL3N) Give the GL Account Number 100500 (out standing exp) Company code : AML Select clear items radio button Execute

Out standing exp A/c 01 10 Bank 9 Rent CI 9 Rent 10 Bank Stop payment instructions to the banker 15000 15000 15000 Cr 15000 Dr

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A) Reset cleared items Delink between the provision and payment. Out standing expenses 01 10 Bank 15000 9 A/c

Rent

15000

B) Reverse cheque transaction Out standing expenses A/c 01 9 Rent

15000

Path: Accounting Financial accounting General ledger-Document Reset clear items (Tr.Code is FBRA) Clearing document Company code Fiscal year : 10 : AML : 2008

Select save button or Ctrl +S Select resetting and reverse button Reversal reason Enter We get a message clearing 10 reset Enter Go and see open item managed account transactions Tr code is FBL3N Give the GL Account no.100500 outstanding expenses Company code : AML Select open item radio button Execute Interest Calculations Balance Interest calculation S Type GL Account :01

Item interest calculation P Type Vendor / Customers

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Define interest calculation type: Path : SPRO- Financial accounting General ledger accounting- Business transactions Bank account interest calculation Interest calculation Global settings Define interest calculation types Interest indication Name Interest calculation type Balance interest calculation Press enter to save in your request Prepare account balance interest calculation: Path : SPRO- Financial accounting General ledger accounting- Business transactions Bank account interest calculation Interest calculation Global settings- prepare account balance interest calculation (Tr.Code OBAA) Select new entries button Interest calculation indicator Interest calculation frequency Calendar type Select balance plus interest check box Save Press enter to save in your request Calendar Type In case of rupee loans we use G Calendar : G1 : Select 01 : Select G (28 31/365) : G1 : 10% Monthly : Select S

In case of foreign currency loans we use F calendar. FC Loan from SBI LIBOR +2% (LIBOR Mean London Inter Bank Offer Rate) For interest calculations the denomination will be always 360 days FIBOR Frankfurt Inter Bank Offer Rate MIB - Mumbai Inter Bank Offer Rate

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Define Reference Interest Rates: SBI rupees term loan 10/04/2008 10/09/2008 Interest calculation for the year 1st method On 100000 from 10/04/2008 to 31/03/2009 at 10% On 100000 from 10/09/2008 to 31/03/2009 at 10% 100000 10000

15000 -3000 -------12000

2nd Method On 10000 from 10/04/2008 to 09/09/2008 at 10% On 90000 from 10/09/2008 to 31/03/2009 at 10%

If the account is having credit balance If the account is having debit balance Loan account Interest indicator

5000 7000 -----12000 ===== 10% 8% Account Credit balance reference interest rate : G2-10% Account debit balance reference interest rate G3-8%

A) Interest rates are given to reference interest rate (G2 and G3) B) Reference interest rates are specified separately if there is a credit balance and if there is a debit balance and it will be assigned to interest indicator C) Interest indicator will be specified in loan account. Define reference interest rates: Path : SPRO Financial accounting General ledger accounting Business transaction Bank account interest calculation Interest calculation Define reference interest rates (Tr code is OBAC) Select new entries button Ref int.rate Long text : G2 : Credit balance 10% interest

Description also credit balance 10% interest Date from Currency Save :01.04.2008 : INR

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Press enter to save in your request Select next enter button Ref.int.rate Long text Description Date from Currency Save : G3 : Debit balance 8% interest : Dr. Bal 8% int : 01.04.2008 : INR

Define Time Dependent Terms Path : SPRO Financial accounting General ledger accounting Business transaction Bank account interest calculation Interest calculation- Define time Dependent Terms Select new entries button Interest calculation indicator Currency key Effective from Sequential number Terms Ref.interst rate Save Press enter to save in your request Select next entry button (F8) Interest calculation indication Currency key Effective from Sequential number Term : G1 : INR :01.04.2008 :2 : Select debit interest balance interest calculation Reference rate Save : G3 : G1 : INR : 10.04.2008 :1 : Select credit interest balance interest calculation : G2

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Enter Interest Values Same path as above (Tr code is OB83) Select new entries button Reference interest rate Valid from Interest rate Reference interest rate Valid from Interest rate Save Press enter to save in your request : G2 : 01.04.2008 : 10 (one month) : G3 : 01.04.2008 :8

Creation Of 2 Gl Masters A .SBI rupees term loan B. Interest account Secured loans Intrest

To check account groups for giving account numbers OBD4 Select position button Give the chart of accounts : AML Enter Secured loan range :100300 -100399 Interest range : 400400-400499 Creation Of Gl Masters (Fs00) Give the GL account no. Company code Select with template button Give the GL Account no. Company code Enter Change the account group to secured loans Change short text to SBI rupee term loan Change GL account long text to SBI rupee term loan :100000 Equity share capital : AML :100300 : AML

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Change GL Account text to SBI rupees term loan Select Create / Bank / Interest tab Field status group change to G005 Interest indicator select G1 Save Tr.Code:FS00 GL Account no. Company code Select with template button Give the GL account no. Company code Enter Select type / Description tab Change account group to interest Change short text to interest a/c GL account long text: Interest account Save Assignment accounts for automatic postings: Path : SPRO- Financial accounting General Accounting Business Transactions bank account interest calculation- Interest Posting prepare GL Account balance interest calculation (Tr.Code OBV2) Select symbols button 0002 Interest paid 2000 GL Account (paid) Interest account Dr 0002 To SBI rupees term loan 2000 If more than term loan 2000 :400100 salaries account : AML :400400 : AML

400400 100300 ++++++++++ ( 10 Times plus)

(10 times +(plus) mean any account number) Length of account no. maximum 10 digits We are using 6 digits why can not we use ++++++ (6 times plus) When we post a transaction Cash account Dr

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Credit to equity share capital and when we give the account number 200100 for cash account and 100000 for Equity Share Capital It takes in the beginning 0000200100 Debit and 0000100000 Credit and when we save it saves with 200100 and 100000. If we gives 6 times plus when we simulate for loan it takes 000010 and it can not save. SBI rupees term loan 100300 IDBI rupees term loan 100301 ICICI rupees term loan 100302 At the time of interest calculation, we give for which loan account interest is to be calculated. Now we are asking the system to calculate interest for 100301 IDBI rupees term loan account 100301 will be replaced in ++++++++++ Select accounts button Give the Chat of Accounts Enter Accounts symbol 0002 2000

: AML

Currency INR INR

GL A/c 400400 ++++++++++

Select save button or Ctrl +S Press enter to save in your request

Open Posting period (Tr.Code is OB52) To open posting periods for April 2008 Select position button Give the posting period variant Enter For Variant From the period 1 is Select save button or Ctrl+S Press enter to save in your request SBI rupee term loan receipt : F-02 10.04.2008 SBI cheque date 100000 12.04.2008 cheque deposit in bank Document date :12.01.2008 : AML :1 : AML

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Posting date

:12.04.2008

Interest calculation in SAP from 12.04.2008 Where as bank calculates from 10.04.2008 We are giving value date 10.04.2008 Now SAP also calculates interest from 10.04.2008 Document date & posting date Type Company code Posting key Account Enter Ignore the warning message press enter Amount Business area Value date Text Posting key Account key Enter Amount Business area Value date Text :* : AMLH :10.04.2008 :+ :100000 : AMLH :10.04.2008 : SBI Term loan receipt :50 :100300 SBI Rupee term loan :10.04.2008 : SA : AML :40 :200100 (Cash a/c)

From the new select document simulate and save. Term loan repayment (F-02) Due date :10.09.2008 Cheque date :10.09.2008 To bank credit in SBI books only on 12.09.2008 interest credit will be in our books 10.09.2008 SBI gives credit from 12.09.2008 Cheque date :07.09.2008 Value date :10.09.2008

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F-02 Give the document date & posting date 07.09.2008 Type Company code Currency Posting key Account no. Enter Ignore the warning message press enter Amount Business area Value date Text Posting key Account Enter Amount enter Business area Value date Text :* : AMLH :10.09.2008 :+ :10000 : AMLH :10.09.2008 : SBI Term Loan Repayment :50 :200100 (Cash account) : SA : AML : INR :40 :100300 SBI rupee term loan

From the menu select document >Simulate and save Balance Interest calculations: Path: Accounting Financial accounting General ledger- periodic processingInterest calculation-Balance interest calculation (F.52) Company code Give the GL account Calculation period Execute Select back arrow To view line item wise interest :AML :100300 ( SBI Rupee Term Loan) :01.04.2008 to 31.03.2009

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Select additional balance line check box Execute Select bank arrow How to give effect for floating rate of Interest Interest rate change from 10% to 12% from 01.06.2008 On 100000 from 10/04/2008 to 31/05/2008 @10% On 100000 from 01.06.2008 to 09.09.2008 @12% On 90000 from 10/09.2008 to 31/03/2009 @12% Open one more session with SPRO Path :SPRO- Financial accounting General ledger accounting Business transactions- Bank account interest calculation Interest calculation- Enter Interest Values (OB83) Select new entries button Reference interest rate Valid from Interest rate Save Press enter to save in your request come to the first session Execute Select back arrow Interest postings to accounts: Change the calculation period : 01.04.2008 to 30.04.2008 : G2 :01.06.2008 :12

Select post interest settlements check box Select update master records check box Session name Posting to business area Posting date of session Posting segment text Select execute button To view the batch input session : AML : AMLH :30.04.2008 : Interest for April 2008

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From the menu select system >Services > Batch input Session Select session name : AML Select process button Select display errors only radio button Select process button We get a message processing of batch input session completed Select exit batch input button To view the document posted use the (Tr. Code FB03) Go and see the GL maser (FS00) Give the GL Account no. :100300 (SBI rupee T.L) Company code : AML From the menu select GL account ->Display -> Select create / Bank / Interest tab Key date of last interest calculation :30.04.2008 Date of last interest run :20.10.2008 On which date we have to run 1. Simple interest SBI rupee term loan 10.04.2008 100000 0002-400400 Interest A/c 2000-100510 Interest payable a/c For may it calculates on 100000 Interest also to post to separate accounts 400400 Interest on SBI Rupee Term Loan 400401 Interest on IDBI Rupee Term Loan 400402 Interest on ICICI Rupee Term Loan 0002-400400 interest on SBI rupee term loan, we are calculating interest for IDBI rupee term loan In batch input session select process forward radio button Deselect display errors only radio button 40 400400 Interest on SBI Term Loan 1000 Change account no to 400401 2. Compound interest SBI rupee term loan 10.04.2008 100000 30.04.2008 575 For may it calculates on 100575

How to make open items initially inactive: Clearing 1 1000 Cr 2 2000 Cr 3 3000 Cr

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Payment 1000 Dr The difference is too large for clearing all items are initially inactive 1 1000 Cr 2 2000 Cr 3 3000 Cr Payment 1000 Dr Path : Accounting Financial Accounting General ledger Environment User parameter- Editing options (Tr.code is FB00) Select open items tab Select selected items initially inactive check box Save Foreign Currency Balance Revaluation FC term loan (Foreign currency TL) | Long term working capital Fixed assets purchase | Local assets Imported assets 21.10.2008 100000 USD 13.10.2008 100000 USD 47 50 4700000 5000000 ----------300000 ========

As per accounting standard 11 (ASII) Balance to be revaluated and change to profit & loss account. Creation of 3 GL Masters A) SBI FC Term loan B) Exchange again C)Exchange loss

Secured loans other income Administration

To check account groups for giving account no.OBD4 Select position button Give the chat of accounts : AML Enter Note the other income range 300100 to 300199 Create of GL masters FS00 Give the GL account no.100301 Company code : AML Select with template button

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Give the GL account no Company code Enter

:100300 (SBI Rupee Term Loan) : AML

Change short text and long test to SBI FC term loan Select control data tab Account currency change to USD Deselect only balance and loan currency check box Select create / bank / Interest tab Interest indicator Delete the dates Save GL Account Company code Select with template button Give the GL account no. Company code Enter Select type/ Description tab Change account group to other income change short text and GL account long text to exchange gain Save GL Account Company code Select with template button Give the GL account no.400300 rent account Company code Enter Change short text and GL account long text to exchange loss Save : AML : 400301 : AML :400300 Rent account : AML :300100 : AML : Blank

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DEFINE ACCOUNT PRINCIPLES Path : SPRO- Financial accounting(new)-Financial accounting global setting (new)-Ledgers-Parallel accounting-Define accounting principles Select new entries button Accounting principle :B

Name / Description of accounting principle.: INDIAN ACCOUNTING STANDARDS Press enter to save in your request Assignment accounting principle to ledger groups Same path as above Select new entries button Accounting principle Target ledger group Save Press enter to save in your request Define valuation methods Path: SPRO- Financial accounting (new)- General ledger accounting (new)Periodic processing Valuate- Define valuation methods Select new entries button Valuation method Description Select always evaluate radio button Document type Exchange rate type for debit balance Exchange rate type for credit balance : SA : B (bank selling rate) :B : AML1 : FC valuation bank selling method for AML : B1 :0L

Select determine exchange rate of ratio button Save Press enter to save in your request

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Define Valuation Areas Same path Select new entries button Valuation area Valuation method Currency type Save Press enter to save in your request Assign valuation areas and accounting principles Same path Select new entries button Valuation area Accounting principle Save Press enter to save in your request Prepare automatic postings for foreign currency valuation: Path :Upto valuate the path is same-Foreign currency valuation-Prepare automatic posting for foreign currency valuation (Tr code is OBA1) Double click on exchange rate difference using exchange rate key Give you chart of accounts : AML : BA : B1 : BA : AML1 : Select company code currency

Select change valuation area or right arrow button Give the valuation area Enter Exchange rate difference key expenses account Exchange rate gains account Select save button or Ctrl+S Press enter to save in your request Delete ledgers (other than OL) for Ledger Group OL : USD :400301 :300100 : BA

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April March OL Jan- Dec G1 July June GL

Leading ledger (India) Non leading ledger 1(US) Non leading ledger 2(Australia)

At the time of posting FI we dont give ledger group it updates all the ledgers automatically Indian accounting standards / Australian accounting standards US Accounting standards (US GAAP)

FC revaluation Creation of ledger groups OL Assign ledgers OL and GI Delete ledgers assigned to ledger group OL other than OL

Add to asset G1 G1

Path :SPRO-Financial accounting (new)- Financial accounting Global settings (new) Ledger-Define ledger groupSelect ledger group :0L Double click ledger assignment folder Select ledgers other than OL From the menu select delete Ignore the message press enter and save Press enter to save in your request Assign exchange rate difference key in GL Master (FS00) Give the GL 100301 SBI FC Term loan Company code : AML

From the menu select GL Account change Select control data tab Exchange rate difference key: Select USD Select save button or Ctrl+S

Foreign currency term loan receipt (F-02) Give the document date : Todays date

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Type Company code Currency Rate Posting key Account Enter

: SA : AML : USD :47 :40 :200100 ( Cash account)

Ignore the warning message press enter Amount Business area Text Enter Posting key Account Enter Amount enter Business area Text :* :AMLH :+ :50 :100301 SBI FC Term loan :100000 :AMLH :SBI FC Term Loan Receipt

From the menu select Document Simulate and Save

Enter year end exchange rate in Forex table OB08 Select new entries button Exchange rate G B Save Foreign Currency Revolution Path: Accounting Financial accounting-General ledger-Periodic processingclosing-valuate-foreign currency valuation (new) (Tr.code is FAGL_FC_VAL) Give the company code : AML 96 Valid from 31.03.2009 31.03.2009 From USD USD Direct quotation To 49.50 INR 50.00 INR

Valuation key date Valuation area Select GL balance tab

:31.03.2009 : BA

Select valuate GL Account balance check box GL account 100301 SBI FC term loan Select postings button Give the batch input session name Select execute button Select 1postings button Select back arrow two times Month end revaluation Diff 23.10.2008 31.10.2008 30.11.2008 Exchange Loss 31.10.2008 30.11.2008 SBI FC Term loan 23.10.2008 31.10.2008 01.11.2008 100000 47 47.50 49 0.50 2.00 Option 2 50000 200000 01.11.2008 50000 5000 200000 :AML

100000 500000 30.11.2008

4700000 50000 200000

Loss for October 50000 Loss for November 150000 --------Loss up to Nov. 200000 ======

procedure for month end revaluation: (Tr code is FAGL_FC_VAL) Enter month end exchange rates in Forex table Company code Valuation key date Valuation area : AML : Month end date : BA

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Select crate posting check box Select reverse posting check box Select execute button Procedure for year end revaluation

Enter year exchange rate in Forex table Company code : AML

Valuation key date year end date Valuation area : BA

Select create posting check box Reversal posting date :Blank

Deselect reverse posting check box Select execute button From the menu select System -> Services-Batch input Sessions Select session FAGL_FC_VALU Select process button Give the business area Enter : AMLH

Second Business area Enter We get a message processing of batch in put session completed Select exit batch input button To view the document posted view the Tr.Code FB03 Enter Select display currency button End user area SAP easy access screen) How to view path when transaction code is given In command filed enter search SAP- menu customization area SPRO : AMLH

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Search SAP-Menu Press enter Search text entry : F-02 Enter CUSTOMIZATION AREA: Use the Tr.code is SPRO Select find button (Ctrl+F) Search term : Fiscal year Enter Select fiscal year in area financial accounting global settings Enter

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ACCOUNT PAYABLE
This is subledger (subsidiary ledger). This is used when material management (MM) module is not implemented for all type purchases material purchase services. When Material Management(MM) module is implemented. This is used for services where TDS is to be deducted. Eg.Job work charges /legal and professional charges In normal accounting for raw material purchases. Purchase A/c To party Dr

In SAP :for Raw material purchases Inventory RM Dr General ledger To party Sub ledger Sundry creditors General ledger | Reconciliation account on control account Trail balance will not match when we post to party automatically it updates sundry creditors RM Basic settings for account payable: 1. Creation of vendor account groups a) we create FI vendors services parties b) MM vendors -Reconciliation account Material parties -Required entry field 2. Create number range for vendor accounts: 3. Assign number range group to vendor account group. 4. Define tolerance group for vendors. 5. Creation of 2GL masters. a) Inventory raw material - Current assets, loans & advances b) Sundry creditors RM -Current liabilities & Provisions 6. Creation of vendor master 7. Document type and no.ranges KR: Vendor invoices KZ: Vendor payment KA: Vendor document for transfers / Reversals 8. Posting keys :31 Vendor credit :25 Vendor debit

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Creation of vendor accounts groups: Path :SPRO Financial accounting Accounts receivable and accounts payableVendor accounts-Master data-preparation for creating vendor master data- Define account groups with screen layout (vendors) Select new entries button Account group Name :AML1 :FI vendors for AML

Double click on company code data Double click on account management Reconciliation account make it required entry field Cash management group make it suppress select save button select create request button short description :AP customization for AML enter press enter to save in your request select next entry button account group AML2 Name :MM vendor for AML

Double click on company code data Double click on account management Reconciliation account : Make it required entry filed.

Cash management group select suppress Save Create number range for vendors account : Up to preparation for creating vendor master data path is same Create number ranges for vendors account.(Transaction code is XKN1) Select change intervals button Select interval button Number range :13

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From no. To no. Enter

:4200001 :4300000

Select interval button once again No.range From No. To no Enter Save Ignore the warning message press enter :14 :4300001 :4400000

Assign number range to vendor account groups: Same path Select position button Account group Enter For account group Number range Account group AML2 Number range :14 :AML1 :13 :AML1

Press enter to save in your request Define tolerance group for vendor Path :SPRO-Financial accounting-Account receivable and account payableBusiness truncations-Outgoing payments-manual outgoing payments-Define tolerances(Vendors) Select new entries button Company code Tolerance group Description Save :AML : Blank :Tolerance group for AML

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Press enter save in your request Creation 2GL masters (FS00) Give the GL account no.200120 Company code Select with template button Give the GL account no.200100 Cash A/c Company code Enter Change short text and GL A/c long text to Inventory RM (Raw material) Select create /bank /interest tab Field status group change to G001 Deselect relevant to cash flow check box Save One more A/c GL Account No.100501 Company code Select with template button Give the GL A/c No.100500 (Outstanding exp) Company code Enter Select type/ Description tab Change short test and GL account long test to Sundry Creditor to RM Select control data tab Deselect only balances in local currency check box Reconciliation account for account type select vendor Deselect open item management check box Sort key :Select 012 vendor number :AML :AML : AML :AML

Select create /bank /interest tab Field status group change to G067 (reconciliation accounts) Save

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Creation of vendor master: Path : Accounting-Financial accounting Account payable-Master recordsMaintain centrally-Create (Transaction code is XK01) Give the company code Account group Enter Title Name Street Post City Country Telephone no. :Select company :Birla Chemicals Limited : Ameerpet :500082 :Hyderabad :In(India) :040123456 :AML :AML1

Select next screen button three times Reconciliation account Sort key Select next screen button Payment terms Tolerance group :Select 0001 (payable immediately) :Blank :Select 100501 (sundry creditors raw materials) :012 Vendor no

Select check double invoice check box Save MM Module Purchase order | Goods receipt | Invoice verification

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FI Module Document date

:Party bill date

01.10.2008 07.11.2008 1234 | save

Posting date 31.10.2008 Reference vendor no. party bill no. 1234 | Save Doc no.100001

System gives a wrong message no.100001 is posted to the party with the same amount. Do you want to post once again. Provided we select check double invoice check box (If MM module is not implemented and same bill two times entry) Document types and no. ranges (OBA7) Select type KR Vendor invoice Select details button Number range 19 (Note down the no.range)

Select number range information button Give the company code : AML

Select change intervals button Select interval button No.range Year From no. To no. :19 :2008 :100001 :200000

Enter and save Ignore the warning message press enter Select back arrow 3 times Select type -KZ vendor payment

Select details button No. range 15 (note down the no.range)

Select no.range information button Give the company code :AML

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Select change intervals button Select interval button No.range 15 Enter and save Ignore the warning message press enter Select back arrow 3 times Select type KA vendor document Select details button No.range 17 year 2008 From no. 200001 To no. 300000

Select no.range information button Company code : AML

Select change interval button Select interval button No.range Year Form no. To no. Enter and save Ignore the message press enter :17 :2008 :300001 :400000

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HOUSE BANK Bank branch name Bank Address Contact person Telephone no. Senario1 1. House bank No.of account IDs (Identification) Scenario 2 2 House banks Account ID SBI Main branch | Current A/c No. BI Begumpet Branch | Current A/c No.

SBI Main branch Current A/c Current A/c No.1 No.2

Current C/A No.3

Steps: 1) Creation of GL Master SBI current account Under Current assets , Loans & Advances 2) Define House bank 3) Creation of check lots check from no., check to no. * In SAP check mean cheque 1. Creation of GL Master (FS00) Give the GL account no.200105 Company code :AML Select with template button Give the GL account no. : 200100 Company : AML Enter Change short text and GL account long text save

Cash A/c SBI current A/c

2. Define house banks Path : SPRO-Financial accounting Bank accounting-Bank accounts Define house banks (FI12) Give the company code Enter : AML

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Select new entries button House bank Bank country Bank key Save Bank name Street City Bank branch Enter Press enter to save in your request Double click on bank account folder Select new entries button Account ID Description Bank account no. Currency G/L Account no. Select save button 3. Creation of check lots: Path :Accounting Financial accounting-Accounts Payable Periodic Processing -payments (F110) From the menu select Environmentcheck Information Number ranges (FCHI) Paying company code House bank Account ID :AML :SBI :SBI1 :SBI1 :SBI current A/c no.1 :AML1234 :INR :200105 SBI current a/c :State Bank of India :Bank Street :Hyderabad :Main branch :SBI :IN :AML1 (text field)

Select change button (Shift +F5) Select create button Lot no. :1

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Check no To no.

:500001 :500100

Select Non sequential check box Short information Purchase date Enter and save :SBI :Todays date i.e Check box issue date

Manual payment Automatic payment 1. We can issue any check any time System will issue check one after another 2. Sequential or Non-sequential Sequential Purchase invoice posting Path : Accounting-Financial accounting-Account payable Document entryInvoice general (Transaction code F-43) Give the document date Type Company code Posting key Account Enter Give the amount Business area Text Posting key Account no. Enter Amount Business area Text :* :AMLH :+ :500000 :AMLH :Purchase invoice posting :40 :200120 (Inventory raw material) :Todays date :KR(Vendor) :AML :31 (Vendor credit) :4200001 (Vendor no.)

From the menu select document Simulate and save

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2. How to view vendor account transactions Path: Accounting Financial accounting-Account payable-Account Display change line items (Transaction code is FBL1N) Give the vendor account Company code :4200001 :AML

Select open items radio button Select normal items check box Select execute button 3. To view general ledger sundry creditor raw material Transaction code is FS10N Give the GL account no. Company code Fiscal year Business area Select execute button Double click on cumulate balance amount To view vendor wise Select change layout button Select assignment field from the hidden fields column Select amount in local currency (under column content) Select left arrow Select copy button 100501 Sundry creditors RM Sort key :012 Vendor number Sort key updates assignment field automatically Outgoing payment with clearing Path :Accounting Financial accounting-Accounts payable -Document entryOutgoing payment Post (F-53) Give the document date Type Company code : Todays date :KZ :AML :100501 Sundry creditor raw material : AML :2008 :AMLH

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Clearing text Account under bank date Amount Business area Text

:Outgoing payment :200105 (SBI current account) :5000 :AMLH :Outgoing payment

Account under open item select :4200001 Account type Select process open items button Double click on payable amount Document Simulate Select save button or Ctrl+S :5000 :K comes by default (K stands for Vendors)

Go and see the vendor account truncation (Tr.code is FBL1N) Give the vendor account no. Company code :AML :4200001

Select cleared item radio button Select normal items check box Execute Creation of manual check Path :Accounting Financial accounting Accounts payable Environment Check information Create Manual checks (Tr code FCH5) House bank Account ID Give the check no. Save :SBI :SBI1 :500025

Display check resister Upto check information the path is same code is FCHN) Display Check register (Tr

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Give the paying company code :AML Execute Double click on check no. :500025 Select accompany documents button Path A/c Payment doc.no. 200005

Bill no. Amount 1 5000 2 5000 3 15000 4 5000 5 5000

Payment 5000

Check 500001

5000 5000

200001 200010

500025 payment history 500005

Assignment of check no.to payment no.payment doc no.is cleared will be number Check encashment date updating: Based on bank statement we update check encashment date. Advantage 1 1. We know on which date the check is encased by the party 2. Bank reconciliation is easier 3. upto check information the path is same change Additional info/Cash (Tr code is FCH6) paying company code :AML House bank :SBI Account ID :SBI1 Check no. :500025 Enter Give the check encashment :20.11.2008 Save Go and see check register FCHN give the paying company code :AML Execute Sort date wise FI the encashment date is bank or offer 30.11.2008 Checks issued but not presented. Unissued checks cancellation Some time while writing check we commit mistake before issuing to party we cancel check Up to check information the path is same void unused checks (Tr code is FCH3) Give the paying company code House bank :AML :SBI

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Account id Check no.from Void reason code

:SBI1 :500001 :Select 06 destroyed select void button (Shift+F5)

Go and see the check register (FCHN) Give the paying company code Select execute button Once the check lot is over all check keep the cursor and cheque no.from to select sort in ascending order button (Ctrl +F5) If any number is missing between the check is misused. How to create void reason code Path :SPRO-Financial accounting Accounts receivable and accounts payable-Business truncations-Outgoing payments Automatic outgoing payments-Payment media check management Define void reason codes (Tr code is FCHV) Select new entries button Reason Void reason code Select save button or Ctrl+S Press enter to save in your request :AML

:15 :Stop payment for AML

How to delete encashment date data: 500019 we have to give encashment date 20.11.2008 for 500019.by mistake we have given for 500020 500025 20.11.2008 to delete encashment date 500021 500022 Path :up to check information the path is same Delete Reset data (Tr.code is FCHG) Give the paying company code :AML House bank :SBI Account id :SBI1 Check number :500025 Select reset cashing data radio button Execute Select yes button for the message to reset data Go and see the check register (FCHN)

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Give the paying company code Execute

:AML

Issued check cancellation System will not permit to cancel encashed checks. Vendor account a) Invoice posting (F-43) a) 01 (open items) b) Outgoing payment with clearing (F-53) b) Bank 5000 Dr a)5000 Cr c) Manual check creation (FCH5) CI (Clearing items) A) 5000 Cr B) 5000 Dr d)Display check register (FCHN) e) Issued check cancellation 1) Reset cleared items Delinking bill amount and payment amount Vendor Account 01 B) Bank 5000 Dr A) 5000 Cr 2) Reverse payment Vendor account 01 A) 5000 Cr Cancel check Path :upto check information the path is same Void-Cancel payment (Tr.Code is FCH8) Paying company code House bank Account ID Check number Void reason code Reversal reason Select cancel payment button Go and seethe vendor account FBL1N Give the vendor account no. :4200001 Company code :AML Select open items radio button Select normal items check box Select execute button :AML :SBI :SBI1 :select 500025 :15 (stop payment for AML) :select 01(reversal in current period)

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Go and see the check register FCHN Give the paying company code Select execute button :AML

Advance payments to vendors (down payments to vendors) Sundry creditors Purchase Advance Advance to vendors (current liabilities) (current assets) Payment purchase 1. Creation of GL master Advance to vendors Current assets, Loans & Advances 2. Link between sundry creditors ands advances to vendors A (Advance special GL indicator) ^ Sundry creditors Advance to vendors Reconciliation account Alternative reconciliation account or special GL Account 100501 200150 Vendor A/c 4200001 BirlaChemals Limited -100501 At the time of making payment we know the purpose of payment. If it is payment against a bill -4200001 100501-Sundry creditors If it is payment as an advance 4200001 A 4200001 Birla Chemicals Limited -100501 A(Advance (Special GL indicator)) ^ 100501 200150 Advance payment posting Purchase invoice posting Transfer of advance from special GL to normal by clearing special GL items. Clearing of normal items. Vendor account have two parts 1) Normal items 2) Special GL items Creation of GL master advance to vendors (FS00) GL A/c No. Company code Select with template button Give the GL account no.100501 (Sundry creditors raw material) :200150 :AML

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Company code Enter

:AML

Change account group to current assets loans & advances Change short text and GL account long text to Advance to vendors Other fields are common Select save button or Ctrl+S Link between sundry creditors and advance to vendors: Path :SPRO-Financial accounting-Accounts receivables and accounts payables Business transactions-Down payment made-Define alternative reconciliation account for down payments (Tr code is OBYR) Double click on A or down payment on current assets Give the chart of accounts Enter Reconciliation account Special GL account Select save button or Ctrl+S Press enter to save in your request Advance payment posting: Path :Accounting Financial accounting Account payable Document entrydown payment Down payment (F-48) Document date Type Company code Vendor account Special GL indicator Bank account Business area Amount Text :Todays date :KZ :AML :4200001 :A :200105 SBI current account :AMLH :25000 :Advance payment posting :100501 :200150 :AML

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Enter Amount Business area Text :* :AMLH :+

From the menu select Document Simulate and save Go and see the vendor account transaction (Tr.code is FBL1N) Give the vendor account no. :4200001 Company code :AML Select open items radio button Select special GL transaction check box Execute Purchase invoice posting (F-43) Give the document date Type Company code Posting key Account no Enter Amount Business area Text Posting key Account no. Enter Amount Business area Text :* :AMLH :+ :25000 :AMLH :purchase invoice posting :40 :200120 inventory raw material :Todays date :KR :AML :31 :4200001

From the menu select document simulate and save Go and see the vendor account (Truncation code FBL1N) Give the vendor account no. :4200001

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Company code Select open item radio button Select normal items check box Execute Select back arrow

:AML

Select special GL truncation check box along with normal items Execute Transfer of advance from special GL to normal by clearing special GL items Path :Accounting Financial accounting-Accounts payable-Document entry-Down payment Clearing (F-54) Give the document date Document type Company code Vendor account Text Select process down payments button Transfer posting Save Go and see the vendor account transactions FBL1N Give the vendor account no. Company code Select clearing items radio button Select special GL transaction check box Execute Select back arrow Select open items radio button Select normal items check box Execute :4200001 :AML :25000 :Todays date :KA :AML :4200001 :Advance transfer to normal

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Clearing of normal items: Path : Accounting Financial accounting Accounts payable Account Clear (F-44) Give the account no. :4200001 Company code :AML Select process open items button Double click on credit 25000 Double click on debit 25000 Save

Go and see the vendor accounts (Transaction code .FBL1N) Give the vendor account no. :4200001 Company code :AML Select cleared items radio button Select normal items check box Execute Vendor account | Normal / Items 6 5 25000 425000 Sundry creditors C/L Special GL items Advance to vendor 3 25000 5 25000 2nd Scenario Advance more bill less Advance 200000 Bill amount 50000 A) Advance payment posting (F-48) B) Purchase in voice posting (F-43) C) Transfer of advance of Rs.500000 from special GL to normal (F-54) Vendor A/c normal items D C 50000 Special GL items A 200000 D) Clearing of normal items (F-44)

B C

50000 50000

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Final result Vendor special GL shows a balance of Rs.1500000 Advance to vendors To be cleared against future bills. 3rd Scenario Advance bill more Advance 9000 Bill amount 90000 Vendor A/c normal items A) Advance payment posting (F-48) B) Purchase invoice posting (F-43) C 9000 B 90000 C) Transfer of advance from special GL to normal by clearing Special GL Items Special GL (F-54) A 9000 C 9000 D) While making balance payment Of Rs.81000 double click on bill Amount 900000 and payment amount Rs.9000. All the 3 line items will go to Clearing items (F-53) TERMS OF PAYMENT 01 Payable immediately - Due net Path : SPRO-Financial accounting Accounts receivable and accounts payable Business transactions-Incoming invoices / Credit memos Maintain terms of payment Select new entries button Payment terms :AML1 Select customer check box Select vendor check box Default for base line date No default :No.of purchases during the month base line date at the time of Invoice posting Blank For all purchases during the month give month end date. Document date :Party bill date Posting date :Goods receipt date Entry date :Quality approval date Payment terms :If the payment is made within 10 days -3% cash discount

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If the payment is made within 20 days -2% ash discount payable within 30 days Under default for baseline date: Select posting date radio button Percentage No.of days Term 1 3 10 Term2 2 20 Term3 30 Press enter Select save button or Ctrl+S Press enter to save in your request Cash Discount Received Trade discounts are to be adjusted to purchases where as cash discounts are to be shown under other income. Creation of GL master Cash discount received other income (FS00) Give the GL A/c no. Company code Select with template button Give the GL account 300100 exchange gain Company code Enter Change short text and GL account long text to cash discount received. Save Assignment of account for automatic postings: Path :SPRO-Financial accounting-Accounts receivable and Accounts payable-Business transactions-Out going payments-Out going payments global settings Define accounts for cash discount taken. (Tr Code is OBXU) Give the Chart of Accounts :AML Enter Save Give the account no.300101 cash discount received Save Press enter to save in your request :AML :300101 :AML

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Purchase invoice posting (F-43) Document date Posting date Entry date Type Company code Currency Posting key Account Enter Amount Payment terms Text Enter Ignore the warning message press enter Posting key Account no. Enter Amount Business area Text :* :AMLH :+ :40 :200120 Inventory raw material :100000 :Select AML1 :Purchase invoice posting :25.10.2008 :01.11.2008 :Todays date :KR :AML :INR :31 :4200001

From the menu select document Simulate and Save

Go and see the vendor account (Transaction code is FBL1N): Vendor account Company code Select open item radio button Select normal items check box Execute :4200001 :AML

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Form the menu select change layout button Form the hidden fields column Select current cash discount amount Select amount in document currency under column-contain Select left arrow or show selected fields button Select copy button Outgoing payment with clearing (F-53) Document date Type Company code Clearing text Account under bank data Business area Amount Text Account Select process open items button Double click on payable amount :100000 :Todays date :KZ :AML :Out going payment :200105 SBI current account :AMLH :97000 :out going payment :Under open item selection 4200001

From the menu select document Simulate We get a message correct the marked line items. Double click on blue font Text enter Save :+

123

Automatic payment program (APP) -Check due dates -Issue check -Pass the enter and cleared party account -Generate payment advance - update check register The check lot should be sequential we are not programmer system given payment program. Check format and payment advice format APP will be used by cash rich companies They run weekly / for every 10 days /For every 15 days At the time of APP run, we have to give bankwise ranking with available amounts. SBI 1 1000000 IDBI 2 500000 ICICI 3 300000 It will issue checks from SBI upto 10 lakhs. Then afterwards it issued form IDBI upto 500000 Then it goes to ICICI and issued up to 3000000 After run, it gives a proposal In the proposal it shows for which parties for which bills from which bank it is going to issue to checks. We can edit proposal By blocking some invoices for payment Or By charging bank Party Y 1 2 3 4 5 System will

Due

Party X 1 2 3 4 5

Black invoices 4,5 and make the payment for 1,2 and 3 use the fund for party bill payments. System is issuing form SBI for party X 3 bills party is having account in ICICI-Change bank from SBI to ICICI. Setup payment methods for country for payment transactions Path :SPRO Financial accounting-Account receivable and account payable Business transactions-Outgoing payments Automatic outgoing payments -

124

Payment method /Bank selection for payment program-Setup payment method per country for payment transactions Select new entries button Country Payment method Description Select outgoing payments radio button Select check radio button Document type for payment Clearing document type Payment medium program Name of print date set Save Press enter to save in your request :KZ :KZ :RFFOUS_C :LIST1S :IN :B :Check

Setup payment methods per company code for payment transactions: Same path Select new entries button Paying company code Payment method Minimum amount Maximum amount :AML :B :10 :9999999999

Select payment per due day check box Select from data button From for the payment medium: F110_PRENUM_CHECK Drawer on the form Authorized signatory Save Press enter to save in your request : for Aravind Mills Limited

125

Setup all company codes for payment transactions: Same path Select new entries button Company code :AML Paying company code :AML Separate payment per business area check box Out going payment with cash discount from : Bank interest rate 1.5% per month 18% per annum Payment term: If we make the payment within 30 days we get -1% cash discount Due within 60 days System will payment 60 days since discount is less than bank interest rate. Within 30 days :Interest for month 1.5 Within 60 days :Interest for month 1.5+1.5 Payment terms: If we make the payment within 30 days we get 2% cash discount. Due with in 60 days System will within 30 days since discount more than bank interest rate. Maximum cash discount: Payment term: If we make the payment within 30 days we get 1% cash discount. Due within 60 days. Though we are not entitled, system claims 1% cash discount and make the balance payment only even if it is paid with 60 days. Special GL transaction to be paid under vendors : Select A (Advances) Save Press enter to save in your request

Setup paying company codes for payment transactions: Same path Select new entries button Paying company code Select forms button From for the payment advise F110_D_AVIS Select sender details button Text ID Letter header :Select ST (ST stands for Text) :F_0001_HEADER :AML

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Footer Sender

:F_0001_FOOTER :F_0001_SENDER

Save and Press enter to save in your request Creation of sequential check lots (FCHI) Paying company code House bank Account ID Select change button Select create button Lot number Check number To Deselect non-sequential check box Short information Purchase date Enter and save Assign payment methods in vendor master: Path :Accounting-Financial accounting Accounts payable-Master records Maintain centrally-Change (XK02) Give the vendor no. :4200001 Company code :AML Select payment transaction check box under company code data Enter Payment methods :Select B Payment block :If we dont want to make the payment to this party in this run, select -Skip account Alternative payee :We have purchased from Birla Chemicals Limtied BCL has to make the payment to party XYZ BCL instructs us to make the payment to XYZ-in alternative payee give XYZ no. when we run APP ,check will be in the name of XYZ and party clearing will be BCL :SBI :Todays :2 :800001 :801000 :AML :SBI :SBI1

127

:BCL in having account in ICICI It instructs us to issue check from ICICI only We give house bank ICICI- check we issued only form ICICI. Individual payment :When we run APP, it will issue one check only for all the bills due some parties ask us to issue separate check for each bill. Select individual payment check box. Separate check will be issued for each bill. Select save button or Ctrl+S House bank END USER AREA Purchase invoice posting (F-43) Document date Type Company code Posting key Account no. Enter Give the amount Business area Text Posting key Account no. Enter Amount Business area Text :* :AMLH :+ :9999 :AMLH :Purchase invoice posting :40 :200120 Inventory raw material :Todays date :KR :AML :31 :4200001

Document Simulate and save Setup bank determination: Path :Accounting Financial accounting Accounts payable-Periodic processingPayments (Tr code is FBZP) From the menu select Environment maintain -Configuration Automatic payment program Customization one Screen FBZP

128

Select bank determination button Select position button Paying company code Enter Select AML Double click on ranking order folder Select new entries button Payment method Currency Bank order House bank Save Press enter to save in your request Double click on bank accounts folder Select new entries button House bank Payment method Currency Account ID Bank sub account Business area save Double click available amounts folder Select new entries button House bank Account ID Days Currency :SBI :SBI1 :999 :INR :SBI :B :INR :SBI1 :200105 (SBI current account) :AMLH :B :INR :1 :SBI :AML

available for outgoing payment :1000000 Save

129

Automatic payment program run (Tr code is F110)


Path :Up to periodic processing the path is same- Payments (Tr code is F110) Run date Identification Select parameter tab Company codes Payment methods :Todays date :AML1 :AML :B

Though we have given the date, we can run tomorrow it self Payment term :If we make the payment within 10 days we get 2% cash discount (Dues within 30 days) :07.11.2008

Purchase today

If we make the payment to day -2% If we make the payment on 14.11.2008 2% System will not issue check todays It will issue in the next run since the discount amount is same. It control the cash flows Party bill date Payment term APP run today :07.11.2008 :AML2 30 days credit 07-12-2008 : It asks next Posting date :14.11.2008

APP run2 Next payable date Next posting date Vendor from Vendor to Save Select bank arrow

:14.11.2008 :14.11.2008 :14.11.2008 :4200001 :4300000

21.11.2008

Select proposal button (Shift +F1) Select start immediately check box Enter Go on press enter (Basic Tr code box green tick mark box) Till we get the message payment Proposal has been created 130

To edit the proposal -Select any proposal button enter (Shift +F4) Double click on vendor no. To block on invoice for payment Double click on document no. Payment block Enter To change bank for second bill Double click on document no. Select reallocation button Payment method House bank Account ID Enter Save Select bank arrow two times We get a message payment proposal has been edited Select payment run button Enter Go on press enter . It we get the message payment run has been carried out. To take check printing: Select printout / data medium tab for the program RFFOUS_C Give the variant Select maintain variants button Select for all selection screen radio button Select continue button Program run date Identification feature Paying company code :07.11.2008 :AML1 :AML :A1 :B :SBI :SBI1 :100004 :100001 :Select A (Block for payment )

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Payment method Business area House bank Account id Check lot no. Select print checks check box Printer

:B :AMLH :SBI :SBI1 :2

:LP01

Select print immediately check box Select print payment advice notes check box printer :LP01 Select print immediately check box Select print payment summary check box Printer Select print immediately check box No.of sample print outs Select dont void any checks check box Select attributes button (F5) Meaning Save Select back arrow Save once again Select bank arrow Select print out button Select start immediately check box For job name in place of question of mark Give variant A1 A1 Company code :AML Business area :AMLH Bank :SBI Account ID :SBI1 Check lot no. :2 Parameters are saved in the variant in place of question mark A1 Press enter Enter once again :SBI check printing date 08.11.2008 :0 :LP01

132

To view check printing From the menu select system Services output control Select execute button Select spool no.check box for check Select display contents (F6) Go and see the vendor Account FB11N Give the vendor account Company code Select cleared items radio button Select normal items check box Execute Double click on document type For the amount :KZ :9999 :4200001 :AML

Select call up document overview button (F9) Select display document header button Enter From the menu select Environment check information

Go and see the check register (FCHN) Give the paying company code Execute Credit memo postings Purchase from Birla Chemicals Limited If the material is not good Return the material or reduce the amount (Price) BCL will issue credit note to mail or AML raises Debit note on BCL Both are same Doc type :KG (Credit memo) KA No.range 17 17 No need to give no.range interval already we have given earlier :AML

133

Path :Accounting- Financial accounting Accounts payable Document entry Credit memo general (F-41) Document date Type Company code Posting key Account Enter Give the amount Business area Text Posting key Account no. Enter Amount Business area Text :* :AMLH :+ :1000 :AMLH : Credit memo posting :500 :200120 Inventory raw material :Todays date :KG (Vendor credit memo) :AML :21 Credit memo :4200001

From the menu select Document Simulate and save Note: Cash journal postings not accept negative balances Normal postings Accept negative postings

134

ACCOUNTS RECEIVABLE (A/R) This is also a Sub Ledger (Subsidiary Ledger)

This is used when Sales & Distribution (SD) Module Is not implemented-All types of sales. Eg: Product Sale/Raw Material Sale/Scrap Sale When Sales & Distribution(SD) Module is implemented-This is used for Raw Material Sale /Scrap Sale/Asset Sale-(Other than Product Sale) At the time of sale: Customer Account Dr SALES Sub ledger | General Ledger Sundry Debtors(General Ledger) | TO | | | Reconciliation Account Or Control Account

BASIC SETTINGS FOR ACCOUNTS RECEIVABLE: 1.Creation Of Customer Account Groups A)FI Customers Asset Sale/Scrap Sale/RM Sale Parties B)SD CUSTOMERS PRODUCT SALE PARTIES 2.Create number ranges for customer accounts 3.Assign number ranges to customer account groups 4.Creation of 2 GL masters A)Sundry DebtorsB)Sales Account 5.Creation Of Customer Master 6. Document Types And No.Ranges "Current Assets,Loans&Advances" Sales OBA7

Reconciliation account field

Required Entry field

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DR DZ DA

Customer Invoice Customer Payment Customer Document For Transfers/Reversals 01 15 Customer Debit Customer Credit

7.Posting Keys

We test a scenario where vendor is a customer Party BCL Party BCL Purchase 100000 Sales 100000 Sales 20000 Purchase 20000 -------------Net Payable 80000 Net Receivable 80000 When we Pay/Receive net amount we have to clear vendor transactions and customer transactions at a time Note : Create receipt terms (if any cash discount debit - Debit expenses ) 1.SALES INVOICE POSTING: Creation of customer account groups Path: SPRO- Financial Accounting- Account Receivables and accounts payables customer accounts Master data- Preparation for creating customer master dataDefine account groups with screen layout (customers) Select new entries button Account group Name : AML1 : FI Customers for AML

Double lick company code data Double click account management Reconciliation account make it required entry filed Save Select create request button Short description for AR customization for AML Press enter Enter once again to Save in your request Select next entry button

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Account group Name

: AML2 : SD customers for AML

Double click on company code data Double click on account management Reconciliation account make it required entry filed. Save. Create No. range for customer accounts: Path :Upto preparation for creating customer master data the path is same.Create no. range for customer accounts (Tr.code is XDN1) Select change intervals button Select interval button No. range From no. To no. Enter Select interval button once again No.range From no. To no. Enter and Save Ignore the warning message press enter Assign Number ranges to customer account groups: Same path Select position button Account group Enter For AML1 For AML2 Assign no.range :23 Assign no.range :24 : AML1 :24 :6700001 :6800000 :23 :6600001 :6700000.

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Save Press enter to save in your request Define tolerance group for Customer Path :SPRO-Financial accounting-Account receivable and account payableBusiness truncations-incoming payments-manual incoming payments-Define tolerances(Customers) Select new entries button Company code :AML Tolerance group : Blank Description :Tolerance group for AML Save Press enter save in your request

Creation of GL Masters (FS00): Give the GL account no. Company code Select with template button Give the GL account no.200150 advance to vendors Company code Enter Change short text and GL account long text to Sundry Debtors Select control data tab Change reconciliation account for account type to customers Change sort key to 031 customer number Select Create / Bank / Interest tab Field status group Save GL account no Company code Select with template button :300000 :AML :G067 : AML :200110 :AML

138

Change GL account 300100 Exchange gain Company code Enter Select type/description tab Change the account group to sales/. Change short text and GL account loge text to sales account Other fields are common Select save button or Ctrl+S Creation of customer master Path: Accounting- Financial accounting Accounts receivables-Master recordsMaintain Centrally-Create (Tr.Code is XD01) Account group Company code Enter Title : Name Country Select control data tab Vendor Select company code data button Reconciliation account Sort key Select payment transaction tab Terms of payment Save :0001 payable immediately due net :200110 Sundry debtors :031 (Customer no.) :4200001 : select Company : BIRLA Chemicals Limited : IN for India :select FI customer for AML :AML :AML

Document type number ranges (OBA7) Select type Dr customer invoice Select details button

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No.range

:18

Select no.range information button Company code Select change intervals button Select intervals button No.range Year Form no. To no. Enter and save Ignore the warning message press enter Select back arrow 3 times Select type Select details button No. range :14 :DZ (Customer payment ) :18 :2008 :400001 :500000 :AML

Select no.range information button Company code Select change intervals button Select interval button No.range Year From no. To no. Enter and save Ignore the message press enter Select back arrow three times Select type Select details button No.range :16 :DA (customer document) :14 :2008 :500001 :600000 ::AML

Select no.range information button Company code :AML

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Select change interval button Select interval button No.range Year Form no. To no. Enter and save Ignore the warning message press enter :16 :2008 :600001 :700000

ENTER USER AREA Sales invoice posting: Path accounting Financial accounting Account receivable- Document entryInvoice General (F-22) Give the document date Type Company code Posting key Account Enter Give the amount Business area Text Posting key Account Enter Account Business area Text :* :AMLH :+ :500000 : AMLH : Sales Invoice posting :50 :300000 (sales account) :Todays date :DR :AML :01 Invoice (Customer debit) C:Customer D: Debit : select 6600001

From the menu select document Simulate and save

141

2.How To View Customer Account TransactionsPath : Accunting Financial accounting Accounts receivable- Account-Display / Change line items (Tr.code is FBL5N) Give the customer account no. Company code Select open items radio button Select normal items check box Select execute button Select back arrow To view vendor and customer transactions together Select vendor items check box along with normal items Execute 3.Incoming payment and clear vendor and customer transactions together Step A)Document type DZ should allow vendor transactions Document types and no. Ranges-OBA7 Select doc type: Select details button DZ Select doc type: kz Select details button Below no. RangeAccount type: A assets D customers to select K vendors selected M materials S GL accounts selected Normal payment entry: vendor a/c DR Vendor To Bank GL :6600001 :AML

Below no. RangeAccount type: A Assets D Customers selected K Vendors to select M Materials S GL accounts selected Normal receipt entry: Bank A/c DR To customer

GL customer

142

use the Tr.code OBA7 Select document type select details button select vendor check box save

: DZ (customer payment )

Incoming Payment : Path :Accounting Financial accounting Accounts receivable- Document entryIncoming payments (Tr.Codes is F-28) Give the document date Type Company code Clearing text Account under bank data Business area Amount Text Account under open item selection Account type : Todays date : DZ Customer payment : AML : Incoming payment : 200105 (SBI current account) :AMLH :496000 : Incoming payment : Select 6600001 :D comes by default (D stands for customers) Select other accounts check box Select process open item button Select standard open items check box Account type Company code Account Select continue button Double click on all open items Document Simulate and save Go And See The Customer Account Transactions (Tr.code is FBL5N) Give the customer account no. Company code :6600001 :AML : Select K (Vendors) :AML :4200001

143

Select cleared items radio button Select normal items check box Select vendor items check box Execute Advance Receipts From Customers (Down Payment Receipts From Customers) Sundry Sale Advance Debtors (Current Asset) Receipt Sale

Advance from Customers (Current Liabilities)

1. Creation Of GL Master-Advance From CustomersProvisions (FS00)

under Current Liabilities &

2. Link between Sundry Debtors and advance from Customers

A (Advance) Special GL Indicator /\ Sundry debtors Advance from customers (Reconciliation Account) (Alternative reconciliation account or special GL account)

3.Advance Receipt Posting 4. Sales invoice posting 5. Transfer of advance from special GL to normal by clearing special GL items 6. Clearing of normal items a)Customer account two parts b) Special GL items 1. Creation of GL master advance from customer current liabilities & provisions (FS00) Give the GL account no. Company code Select with template button :100502 :AML

144

Give the GL account no. Company code

:200110 Sundry debtors :AML

Change account group to current liability & provisions Change short & GL account long text advance from customers Save 3. Link between Sundry Debtors and advance from Customers Path :SPRO-Financial accounting-Accounts receivable and accounts payable-Business transactions-Down payment received Define reconciliation accounts for customer down payments(OBXR) Double click on special GL indicator A Give a your chart of accounts Enter Reconciliation account Special GL account Select save button or Ctrl+S Press enter to save in your request END USER AREA Advance receipt posting: Path :Accounting- Financial accounting Accounts receivable-Document entryDown payment Down payment (Tr.code is F-29) Give the document date Type Company code Customer account Special G/L indicator Bank account Business area Amount Text :Todays date :DZ :AML :6600001 :A :200105 SBI current account :AMLH :12000 :Advance receipt posting :200110 :100502 :AML

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Enter Amount Business area Text :* :AMLH :+

From the menu select Document Simulate and save Go and see the customer account transaction (FBL5N) Give the customer account no. Company code Select open items radio button Select special GL transactions check box Execute Sales invoice posting ( Tr code is F-22) Give the document date Type Company code Posting key Account Enter Amount Business area Text Posting key Account no. Enter Amount enter Business area Text :* :AMLH :+ :12000 :AMLH :Sales invoice posting :50 :300000 Sales A/c :Todays date :DR customer invoice :AML :01 :6600001 :6600001 :AML

Form the menu select document Simulate and save

146

Go and see the customer account transaction (FBL5N) Give the customer account no. Company code Select open items radio button Select normal items check box Execute Select back arrow Select special G/L transactions check box along with normal items Execute Transfer of advance from special GL to normal by clearing special GL items: Path :Accounting-Financial accounting Accounts receivable-Document entryDown payment clearing (F-39) Give the document date Type Company code Customer account Text :Todays date :DA :AML :6600001 :Advance receipt clearing :6600001 :AML

Select process down payment button Transfer posting Save Go and see the customer account transactions (FBL5N) Give the customer account no. Company code Select cleared items radio button Select special GL transactions check box Execute Select bank arrow Select open items radio button Select normal items check box Execute :6600001 :AML :12000

147

Clearing of normal items: Path :Accounting- Financial accounting Accounts receivable Account Clear (F-32) Give the account no. Company code Select process open item button Double click on debit Double click on credit Save Go and see the customer account transactions FBL5N Give the customer account no. :6600001 Company code :AML Select cleared items radio button Select normal items check box Execute :12000 :12000 :6600001 :AML

148

BILL DISCOUNTING

Fund based limits (Money will be given physically by the bank) 1. Cash credit Local Sales order 2. Packing credit Export sales orders 3.Bank overdraft 4.Bill discounting Bill discounting mechanism Sale 500000 on 12.11.2008 Term of payment 30 Days Credit

Non fund based limits (Money will no be given physically by the bank to the company) 1. Bank Guarantees (BG) 2. Letter of credit (LC)

AML

AML Discounts the bill With the bank | Bank will charge 30 days | On due date, bank will collect From customer | ----------------------------------------------------------------------------------------| | Customer makes the customer does not make the payment to the bank Payment to bank liability to AML No liability to AML Contingent liabilities Liability is uncertain Year end: This is shown in notes to accounts Under contingent liabilities Liability to AML

149

Bills discounted with bank Normal Accounting A) Incase of sales Customer A/c Dr To Sales B) Bill of exchange payment - No entry SAP Accounting Customer A/c Dr (Sundry debtors) To Sales Customer special GL (W) Dr (Sundry debtors bill of exchange) To customer a/c with clearing (Sundry debtors) Bank current A/c Dr To Interest A/c To Bank Bill discounting

C) Bill discounting Bank current A/c Dr To Bank bill discounting D) Report view customer wise /BIllwise due date wise/Bankwise out standings available in SAP E) Reverse contingent liability Bank bill discounting Dr To Customer

Bank bill discounting (with clearing) Dr To Customer special GL(W) with clearing (sundry debtors will of exchange)

Presentation in Balance sheet: Sundry debtors=Sundry debtors

Sundry debtors (Bill of exchange) Bank bill discounting

Debit } Net Zero Credit

Or Dont plot sundry debtors bill of exchange and bank discounting in balance sheet-It is required only for notes to accounts. Customer A/c Normal items A) 100000 B)100000 SBI bill discounting OP BAL 300000 E)100000 C)100000 ---------400000

Special GL B)100000 E)100000 300000

150

Limits with banks: Bill discounting limit Already discounted Limit available Bill discounted as per C Limit available Payment by customer as per E Now limit available

SBI 5000000 3000000 ------------2000000 1000000 ----------1000000 1000000 ----------2000000 ======

IDBI 2000000 2000000 -----------0 =======

Creation of 2 GL masters Sundry debtors (Bill exchange under current assets, loans & advances. SBI bill discounting Fund based limits and non-fund base limits Secured loans First change on current asset and second change on fixed assets.

Creation of GL account (FS00) Give the GL account no. Company code Select with template Give the GL account no.200110 Sundry debtors Company code Enter Change short text to sundry debtors Bill of Exchange Change GL account long text to sundry debtors (Bill of exchange) Other fields are common Select save button or Ctrl+S GL account no. Company code :100302 :AML :AML :200111 :AML

Select with template with button Give the GL account no.100300 SBI Rupee Term loan

151

Company code

:AML

Change short text and GL account long text to SBI bill discounting Select control data tab Select open item management check box Select create /bank /interest tab Select post automatically only check box Save Link between sundry debtors and sundry debtors bill of exchange Path:SPRO-Financial account-Bank account Business transactions-Bill of exchange transactions-Bill of Exchange receivable-Post bill of change receivableDefine alternative reconcile Actual for Bills/Exchange receivable (Tr code is OBYN) Double click on special GL indicator Give the chart of accounts Enter Reconciliation account Special GL account Save Save in your request Link for Bank current account, Sundry debtors Account and bank bill discounting account Path: up to the bill of exchange receivable at bank-Define bank sub accounts(Tr code is OBYK) Select new entries button Chart of accounts Bank account :AML :200105 SBI current account :200110 :200111 Sundry debtors (Bill of exchange) :W (Bill of Exchange receivable) :AML

Usage select discounting special GL indicator :W Customer reconciliation account :200110(sundry debtors) Bank sub account for liability :100302 (SBI bill discount) Save

152

Press enter to save in your request END USER AREA Sales invoice posting (F-22) Give the document date Type Company code Select posting key Account no. Enter Amount Business area Payment terms Text Posting key Account Enter Ignore the warning message press enter Amount Business area Text :+ :* :AMLH :100000 :AMLH :Select NT 30 Net 30 (30 days credit) :sales invoice posting :50 :300000 Sales account :Todays date :DR :AML :01 :6600001

From the menu select document Simulate and save Bill of exchange payment: Path :Accounting Financial accounting- Accounts receivable Document entryBill of exchange Payment (F-36) Give the document date Type Company code Posting key Account no. :Todays date :DZ :AML :09 Customer special debit :6600001

153

Special GL indictor Enter Amount Business area Text Due on Placement usage Domicile Control bank location

:W

:100000 :AMLH :Bill of exchange payment :14.12.2008 (30 days due date) :select discounting :SBI :Main Branch, HYD

select choose open item button Select process open item button Double click on receivable :100000 From the menu select document Simulate and save Note the document no.500003 Bill discounting: Path :Accounting Financial accounting- Accounts receivable- Document entry Bill of exchange Discounting (F-33) Give the document date Type Company code Bank account Business area Amount Text Posting key Account no. Enter Amount Business area Text :500000 :AMLH :+ :Todays date :DA :AML :200105 (SBI current account) :AMLH :95000 :SBI bill discounting :40 :400400 Interest account

154

Press select bill of exchange button Doc no. Document Simulate and save Report to view customer wise bill wise, document wise and bank wise outstanding: Path :Accounting Financial accounting-Accounts receivable-Periodic processing Bill of exclude processing Korea-Bill of exchange management (Tr codes S_ALR_87012213) Give the chart of accounts GL account Company code Special GL indicator Usage :AML :200111 Bill of exchange :AML :W :select D (Discounting) :500003

Select discounted /Collected radio button Execute Select current layout button Keep the fields due date, document no, customer received form, document dataDomicile. Amount in local currency Select copy button Reverse contingent liability : Path :Accounting-Financial accounting Accounts receivable-Document entryBill of exchange Reverse contingent liability (F-20) Give the document date & Posting date :13.12.2008 Type :DA Company code :AML GL account :200111 (Sundry debtors bill of exchange) Usage :Select discounting Due by :31.12.2008 Customer :6600001 Select edit line items button Ignore the all warning message and press enter

155

Select drop down button for command column + ++ Set items to active Set items is blocks to active Set items to inactive Set items in blocks to inactive

Customer made payment for 2,3 and 4 bills. Bill No 2 3 4 5 + + + or ++ ++ or

Customer made payment for 1 and 5 bills Bill no. or or 1 + 2 3 4 5 +

Command filed select + Save From the menu select document Display

If bill is dishonored: Contingent liability becomes actual liability base step E reverse contingent liability additional entry to be passed. Customer account To SBI current account Dr (Sundry debtors)

Dunning (Reminder) If the customer does not make the payment as per terms of payment system will issue dunning letters. We are not programmers we use system given dunning letter formats.

156

Dunning area: Company code as a whole /Regional wise / location wise Eg.Big companies Separate marketing heads For East For West For North For South

Only to his area customers. Here we create each session as one dunning area . Small companies one marketing head for all the regions. Company code will be the dunning area. (Cash credit : Loan from bank and after sales we discharge the liability export sales order , packing credit loan from bank , bill discounting after sale) Dunning levels type of letters Maximum :9 levels We are using :4 levels Dunning intervals (Frequency) :10 days Grace period :3 days Eg: Sale on 17.11.2008 Payment terms 0001 Payable immediately 1st Letter 2nd Letter 3rd Letter 4th Letter after after after after 20.11.2008 30.11.2008 10.12.2008 20.12.2008

Dunning charges: For sending the letter we can collect dunning charges form the customer. It can be level based / amount Based It can be fixed percentage amount It will be shown only in the letter It will not be posted the accounts Define dunning areas: Path :SPRO-Financial accounting-Accounts receivable and account payableBusiness transactions Dunning Basic settings for dunning Define dunning areas. Select new entries button Company code Area Text :AML :Blank :Dunning area to AML

157

save Ignore the warning message press enter Press enter to save in your request Define dunning procedures: Path :Up to dunning the path is same Dunning procedures-Define procedures (Tr code is FBMP) Select new procedure button Dunning procedure Name :AML :Dunning procedure for AML

Dunning interval in days:10 No.of dunning levels :4

Line item grace periods :3 days Interest indicator :Select 01 standard item interest calculation

Select standard transactions dunning check box Ignore the warning message press enter Dunning texts button Company code :AML

Select customer radio button Enter Select new company code button Give the company code :AML Enter For company code :AML select separate notice per dunning level check box

Select back arrow two times Select Yes button for the message to save date Press enter to save in your request Select dunning levels button Select always dun check box for all the four levels Select charges button (F6) Give the currency :INR

158

Enter

Company code

:AML

Select customer radio button Enter Open one more session with transaction code :FBMP Double click on procedure Select dunning text button Give the company code Select customer radio button Enter Come to the first session Dunning level 1 From F150-Dunn -01 Dunning level 2 Select pagedown button (right side) Dunning level 3 Form F150_dunn_02 Dunning level 4th Form F150_dunn_02 Now select charges button Give the currency :INR Enter Select back arrow Save Ignore the warning message press enter Press enter to save in your request :0001 0001

159

Assign dunning procedure in customer master: Path :Accounting-Financial accounting-Accounts receivable Master recordsMaintain centrally-Change (Tr code is XD02) Give the customer account no. Company code Enter Select company code date button Select correspondence tab Dunning procedure Save END USER AREA Sale invoice posting (F-22) Give the document date & posting date :10.11.2008 Type Company code Posting key Account Enter Amount Business area Text Posting key Account no. Enter Amount Business area Text :* :AMLH :+ :1111 :AMLH :Sales invoice posting :50 :300000 Sales account :DR :AML :01 :6600001 :select AML :660001 :AML

From the menu Select Document Simulate and save

160

Dunning run Path: Accounting Financial accounting-Accounts receivable Periodic processing-Dunning-(Tr code F150) Run on Identification Select parameter tab Dunning date Documents posted up to Company code Customer Save Select back arrow Select schedule button Select start immediately check box Output devise Select schedule button Go on press enter till we get the message Dun selection is complted Select dunning print out button Select print button Go on press enter till we get the message dunning print out is completed Select dunning history button Give your company code :AML Execute (F8) Keep the cursor on 1111 Select display dunning notice button Keep the cursor on the document no. Select print preview button Go and see the customer master (XD02) Customer Company code Enter Its updates automatically Last dunned date :6600001 :AML :LP01 :Todays date :Today date :AML :6700000 :Todays date :AML1

:17.11.2008 and dunning level. 161

SALES TAX VAT means valued added tax or LST Local Sales Tax CST mans Central Sales Tax Purchase Input tax 1 Local purchases VAT/CST Purchase Basic 100 Excise 8% 8 VAT 4% 4.32(B+E) 4.4(CST2%) --------Bill amount 112.32 224.40 ====== Sales (Output tax) 2 3 outside state CST purchase 4 Local Sales Outside State sales CST sales

VAT /L

100 8 2.16(CST2%) -------110.16 =====

200 20

200 20 27.50(VAT12.5%) --------247.50

---------

=====

======

Payment to sales Department 1. Local sales Local purchases 27.50-4.32=23.18 2. Local sales CST purchases 27.50=27.50 3. CST sales Local purchases 4.4-4.32=0.08 4. CST sales CST purchases=4.4=4.4 At the time of local purchases, tax paid on purchases, can be adjusted to tax payable at the time of sales. (Local sales /CST sales) At the time of CST purchase, tax paid on purchases can not be adjusted to add to inventory. Excises rates are based on products Excise rates are given central excise tariff, in central excise tariff we have 8 digits chapter ID. 52000000 Textiles 8% Central excise will be covered in the end. We are testing now without excise duty. Customization of sales tax

162

1. Define tax procedure Path :SPRO-Financial accounting Financial accounting global settingsTax on sales /purchases-Basic settings-Check calculation procedure. Double click on define procedures Select new entries button Procedure Description Save Press enter to save in your request Select H Tax Double click control data folder Select new entries data folder :H Tax :Sales tax India

Select new entries button Step 10 20 30 Save Assign country to calculation procedure Up to basic settings the path is same Assign country to calculation procedure Select position button Give the country Enter For country IN assign procedure H tax Save Press enter to save in your request :IN for India Co 0 0 0 C Type Description From To Account key

Select BASB Base amount MWVS MWAS Input tax 10 10 10 Select VST -Input tax MWS output tax

Output tax 10

163

Define tax codes for sales and purchases Up to tax on sales of purchases the path is same-Calculation Define-Tax codes for sales and purchases. (Tr.code is FTXP) Give the country Enter Give the tax code Enter Description Tax type Enter Input tax, tax percent rate 0 Keep the cursor on ouput tax, tax percent rate Select deactivate line (F5) button Save Tax code Enter Description Tax type Enter Input tax, tax % rate 4 Keep the cursor out put tax, tax percent rate Select deactivate line button Save Tax code Enter Description Tax type Enter Output tax, tax percent rate 0 Keep the cursor our input tax, tax percent rate Select deactivate line button :0% output tax :select A output tax :A0 :4% input tax :select V input tax :V1 :0% input tax :Select V input tax :Vo :IN for India

164

Save Tax code Enter Description Tax type Enter Output tax, tax percent rate 12.5% Keep the cursor on input tax, tax percent rate Select deactivate line button Save Assign tax codes for non-taxable transactions Path :Up to tax on sales/purchases the path is same Posting-Assign tax codes for non-taxable transactions (Tr code is OBCL) Select position button Give your company code :AML Enter For AML select input tax V0 Out put tax Vo Save Press enter save in your request Creation of GL master FS00 1. VAT receivable 2. VAT payable Current liability Tr code is FS00 Give the GL account no. Company code Select with template button Give the GL account no. Company code Enter :200120 (Inventory RM) :AML :200155 :AML :12.5% output tax :Select A out put tax :A1

Current assets, Loans & Advances

165

Change short and GL long text to VAT receivable Select create / Bank /Interest tab Field status group change to G041 (Tax office clearing accounts) Save One more account Give the GL account no.100505 Company code Select with template button Give the GL account no. Company code Enter Select type/Description tab Change account group to current liability and provisions Change short text and GL account long text to VAT payable Save Give the GL account no.:200120 Company code :AML :200155 :AML :AML

From the menu select GL account change Select control data tab Tax category :Select * (All tax types allowed)

Select posting without tax allowed check box Save Ignore the warning message press enter GL Account Company code 300000 AML Sales A/c

From the menu select GL account change Tax category :select *

Select posting without tax allowed check box Save Ignore the message press enter

166

Assignment of accounts for automatic postings: Path :SPRO-Financial accounting Financial accounting global settings-Tax on sales/purchases-posting-Define tax accounts (OB40) Double click on transactions VST (input tax) Give the Chart of Accounts :AML Enter Select save button or Ctrl+S Give the account :200155 VAT receivable Save Press enter to save in your request Select back arrow Double click on transactions MWS(output tax) Save Give the account no.100505 VAT table Save Press enter to save in your request In line environment FI consultants job: Customization Creation of Tax procedure Creation of tax codes Creation of GL accounts Assignment of GL accounts MM module: Purchase order material no.RM1 Purchase order vendor 1234 Purchase order Qty 1 Kg Purchase order Rate 100 Purchase order tax code V1 (4% input tax) Goods receipt Tax procedure: Base amount 100 (1* 100) inventory Account Input tax on base amount 4 VST -200155 VAT receivable (V1-4% ) ----Vendor credit 104 ===

167

SD module: Sales order

Customer no. 9876 Material FG1 Qty 1Kg Rate 200 Tax code A1 (12.5%) output tax

Tax procedure Base amount 200 sales account Output tax on base amount 25 MWS -100505 VAT payable At 12.5% ----Customer debit 225 === In FI for sales: Customer account Dr 225 To sales 200 To VAT payable 25 Save Sales invoice posting Tr code is F-22 Give the document date :Todays date Company code :AML Posting key :01 customer debit Account :6600001 Enter Give the amount :225 Select calculate tax check box Text :Tax sales invoice posting Posting key :50 Account no. :300000 (Sales a/c) Enter Amount :* Tax code :Select A1 Business area :AMLH Text :+ From the menu select Document- Simulate Double click on VAT payable line item Business area :AMLH Text :+ Save

168

ASSET ACCOUNTING
Bad debits: 1. Creation of GL Master :Provision for bad debts reconciliation A/c No.200112 2. Link between sundry debtors and provision for bad debts :OBXY E /\ 200110 Reserve for bad debt 200112 F-22

3. Sales invoice posting

4. Transfer from customer normal to customer special GL E Customer special GL E ER Dr To customer with clearing 5. After 3 years bad debtors Dr To Customer special GL F-30 Provision for bad debt Sundry debtors F-30 Provision for bad debt

Asset accounting: This is sub ledger (subsidiary ledger) Chart of Depreciation Asset accounting customization will be done for Chart of Depreciation will be assigned to company code/codes. We have to copy either Germany chart of depreciation or Indian Chart of Depreciation. Depreciation areas: Book depreciation (Postings to accounts) Income tax depreciation Group depreciation Costing depreciation | | Only for information |

Depreciation methods; Straight Line Method depreciation method (SLM) Written down value depreciation method (WDV) Depreciation keys 5% SLM Rate 5% WDV Rate Rate +Method

169

Transaction types 100 External acquisition 110 In-house production \ 210 Retirement with revenue Asset debit The debit can be use of External acquisition (Outside purchase) /In house production/Inter unit transfer/Inter company purchase. With transaction type we will come to know because of what it is debited. Posting keys: 70 Asset Debit 75 Asset Credit Asset accounting is based on 4 rules: 1. Sub asset master is to be created with reference to main asset master. 2. Main asset master is to be created with reference to asset class 3. Account determination is specified in asset class 4. For account determination we assign GL accounts based on the nature of transaction. Account Asset class determination Purchase 200000 P & M 200000 P& M 1.Land 2.Building Free hold Lease hold Factory Non factory Machine no.1 15.05.2003 Machine no.2 Main asset master Sub asset master

Profit on asset Dept A sale 3. Plant & Machinery Loss on asset Sale Loss due to scrapping Depreciation Accumulation depreciation Dept B Dept C 4. Furniture & Fixtures 5. Vehicles 6. Capital work in progress

Motor

20.11.2008

Furniture & Fixtures Heavy , Others General Expansion 1 Expansion 2

Additions to specific mechanical will be created as sub asset masters.

170

Main asset will be have always sub number zero. Crate machine no.1 Master Motor to machine no.1 Addition to machine no.1 1-0 1-1 1-2

If we give 1-0 it gives main asset value If we give 1-1 it gives motor value If we give 1 it gives machines 1 with additions Why we call Land /Buildings etc. as account determinations. These items will determine the GL accounts to be posted automatically. Motor purchase: . Motor A/c Dr SL To Bank GL Save CUSTOMIZATION Copy reference Chat of Depreciation /Depreciation Area: Path :SPRO-Financial accounting-Asset Accounting Organizational structures Copy reference Chart of Depreciation /Depreciation area (Tr code is EC08) Double click on copy reference Chart of Depreciation From the menu select organizational object Copy org. object (F6) From Chart of Depreciation :Select ODE (Maximum valuation: Germany) To chart of Depreciation Enter Ignore the message press enter Select create request button Short depreciation :Asset customization for AML Enter Press enter once again to save in your request :AML

500000 2000000 500000

Transaction type :100 P & M 50000 GL

171

We get a message chart of depreciation ODE copy to AML Enter Select back arrow Double click on specify depreciation of Chart of Depreciation Select position button Chart of Depreciation Enter Change the description to Chart of Depreciation for AML Press enter to save in your request Select back arrow Double click copy /delete depreciation areas Give the Chart of Depreciation :AML Enter Select areas 3,10,15,20,31,32,41 &51 From the menu select Edit Delete Save Ignore the warning message press enter Press enter to save in your request Assign Chart of Depreciation to Company code Path :Up to organization structure the path is same Assign Chart of Depreciation to company code (Tr code is OAOB) Select position button Give the company code Enter For company code AML Chart of Depreciation AML Save Press enter to save in your request :AML :AML

172

Specify account determination Path :Up to the organizational structure the path is same Asset Class-Specify account determination Select new entries button Account Description determination AML10000 Land AML11000 Building AML20000 Plant & Machinery AML30000 Furniture & Fixtures AML31000 Vehicles AML40000 Capital work in progress Save Press enter to save in your request Create screen layout rule Same path Select screen layout Select screen layout Select screen layout Select screen layout Select screen layout Select screen layout Select copy as button Change screen layout 1000 to AML1 Name :Land 1000 1100 2000 2100 2500 3000

Change screen layout 1100 to AML2 Name :Buildings

Change screen layout 2000 to AML3 Name :Plant & Machinery

Change screen layout 2100 to AML4 Name :Furniture & Fixtures

Change screen layout 2500 to AML5

173

Name

:Vehicle

Change the screen layout 2600 to AML6 Name Enter & Save Press enter to save in your request Define number range intervals Path :Same path (Tr code is AS08) Company code :AML :Capital work in progress

Select change intervals button Select interval button Number range From number Enter Select interval button once again No.range From no. To no. Enter Select interval button No.range From no. To no. Enter Select interval button No.range From no. To no. Enter Select interval button No.range :05 :04 :300001 :400000 :03 :200001 :300000 :02 :100001 :200000 :01 :100000

174

From no. To no. Enter

:400001 :500000

Select interval button No.rage From no. To no. Enter & Save Define asset classes: Path :Same path (Tr code is OAOA) Select new entries button Asset class :AML1000 Description :Free hold land Short text also :Free hold land Account determination Screen layout rule No.rage :select AML10000 Land :select AML1 Land :01 :06 :500001 :600000

Select included asset under inventory data Select no.AUC or Summary Management of AUC Save Press enter to save in your request

Note: AUC stands for Asset Under Construction

Select next entry button (F8) Asset class Description Short text Account determination Screen layout rule :AML1100 :Factory Buildings : Factory Buildings :select AML11000 Buildings :AML2

175

Number rage

:02

Select include asset under inventory data check box Select no.AUC or Summary Management of AUC Save Select next entry button (F8) Asset class Description Short text Account determination Screen layout rule Number rage :AML2000 : Dept A : Dept A :select AML20000 P & M :AML3 :03

Select include asset under inventory data check box Select no.AUC or Summary Management of AUC Save Select next entry button (F8) Asset class Description Short text Account determination Screen layout rule Number rage :AML3000 : Furniture & Fixtures : Furniture & Fixtures :select AML30000 Furniture & Fixtures :AML4 :04

Select include asset under inventory data check box Select no.AUC or Summary Management of AUC Save

Select next entry button (F8) Asset class Description Short text Account determination Screen layout rule :AML3100 : Vehicles and others : Vehicles and others :select AML31000 Vehicles and others :AML5

176

Number rage

:05

Select include asset under inventory data check box Select no.AUC or Summary Management of AUC Save Select next entry button (F8) Asset class Description Short text Account determination Screen layout rule Number rage :AML4000 : Capital Work in Progress -General : Capital Work in Progress -General :select AML40000 CWIP-General :AML6 :06

Select include asset under inventory data check box Select line item settlement radio button Save Select include asset under inventory data check box: Inventory means fixed inventory, whatever assets we create they will be included in fixed assets inventory. As per companies auditors report order (CARO) the auditor will state whether fixed assets have been physically verified by management or not. Incase of big companies physical verification in a phased manner When we create an asset master There is a field called last verification date Asset nos Last verification date 1 31.03.2008 2 31.03.2007 3 31.03.2008 4 31.03.2008 5 31.03.2007 In the report we give the report date From 01.04.2007 to 31.03.2008 we get the list of asset verified during the year 1 2 3 4 31.03.2008 31.03.2008 31.03.2008 31.03.2008

177

We have not selected for capital work in progress We can not verify every that assets once they are commissioned they will be shown under respective head and not under capital work in progress For capital work progress general Select line item settlement radio button Machinery 01/11/2008 Fright AMT 15/11/2008 Settle from Capital Work In Progress to machine no.10 line item wise Commissioning charges 22/11/2008 Determine areas in the asset class Path :SPRO-Financial accounting Asset accounting-Valuation Determine depreciation areas in the asset class (Tr.Code is OAYZ) Give the chat of depreciation Enter Select position button Asset class :AML1000 (Free hold land) Enter Select AML1000 (Free hold land) Double click depreciation areas folder Deselect deactivation check box for area 01 Book depreciation Layout :Select 2000 depreciation on asset sub-no level :AML Debit to CWIP Asset commissioned on 22.11.2008 as machine no.10

For area 01 layout 2000 For area 02 layout 2000 For area 30 layout 2000 Save Press enter to save in your request Select back arrow The same procedure the followed for asset class AML1100 AML2000 Factory building Dept A

178

AML3000 AML3100 AML4000

Furniture & Fixtures Vehicles & other Capital work in progress

Deselect deactivation check box for area 01 for land there is no depreciation In asset master creation-Capitalization date required Land purchase details registration date Depreciation key(Rate) 0%

For area 01- Select 2000 Depreciation on asset sub number level Asset no. Machine 10 1 Motor 1 Sub.no. 0 1

10/08/2005 22/11/2008

Creation of 15 General ledger master FS00

S.N GL Account No. o. 1 200000 Land

Account No.to copy 200110 Sundry debtors

Parameters to Maintain -Account group Fixed assets -200000-20009 -Change the account group Fixed Assets -Sort key -018 Asset number Reconciliation A/c for account type Asset -Field status group 067 Reconciliation accounts. -Do -Do -Do -Do -

2 3. 4. 5. 6.

200005 Buildings 200010 Plant & Machinery 200015 Furniture & Fixtures 200020 Vehicles 200025 Capital work in progress

200000 Land -Do-Do-Do-Do-

-Do -

100200

-Do-

Account group-Accumulate

179

Accumulate depreciation- Building

depreciation -100200-100299 -Sort key -018 Asset number -Reconciliation A/c for account type Assets -Field Status group- 067 Reconciliation accounts 100200 Depreciation Buildings -Do-Do -

9.

10 11.

100205 Accumulated depreciation Plant & Machinery 100210 Accumulated depreciation Furniture & Fixtures 100215 Accumulated depreciation Vehicles 300102 Assets sales

-Do-

-Do300100 Exchange gain

-DoAccount group other income 300100-300199 Sort key -018 Asset number Field status group G052 -Account group other Income -300100-300199 -Sort key 018 Asset number -Field status group -G001 -Do-DoChange the Account group Depreciation 400500-400599 Sort key -018 Asset number Filed status group-G001

12

300103 Profit on asset sale

-Do-

13 14 15

400302 Loss on asset sale 400303 Loss due to scrapping 400500 Depreciation

-Do-Do-

180

Assignment of accounts for automatic postings: Path :SPRO-Financial accounting Asset accounting-Integration with the general ledger-Assign GL accounts. Give the your Chat of Depreciation Enter The Transaction code is AO90 Select chant of accounts Double click on account determination folder Select account determination Double click on Balance sheet accounts folder Acquisition column :Acquisition and production costs Give the A/c No.:200000 Land Loss made on asset retirement w/o revenue.(w/o revenue mean scrap) Give the account no.400303 loss to scraping Clearing account revenue from asset sale Gain from asset sale Loss from asset sales Press enter Select save button Ignore the warning message press enter Press enter to save in your request Double click on account determination folder Select account determination Double click on Balance Sheet accounts folder Acquisition column acquisition and production cost a/c no.200005 Loss made on asset retirement w/o revenue Clearing account revenue from asset sale Gain from asset sale Loss from asset sale Save Ignore the message press enter Double click on depreciation folder :400303 :300102 :300103 :400302 :AML11000 Buildings :300102 :300103 :400302 :AML10000 Land :AML

:AML

181

Accumulated depreciation for ordinary depreciation 100200 accumulated depreciation buildings Expense account for ordinary depreciation 400500 Depreciation account Save Ignore the message press enter Double click on account determination folder Select account determination Double click on Balance Sheet accounts folder Acquisition column acquisition and production cost Give the GL account no.:200010 Loss made on asset retirement (without) w/o revenue 400303 Clearing account revenue from asset sales Gain from asset sale Loss from asset sale Select save button or Ctrl+S Double click on depreciation folder Accumulated depreciation account for ordinary depreciation a/c no.100205 Expense account for ordinary deprecation Save Ignore the message press enter Double click on account determination folder Select account determination Double click on balance sheet account folder Acquisition :Acquisition and production costs 200015 (Furniture & Fixtures a/c) Loss made on asset retirement w/o revenue Clearing account revenue from asset sale Gain from asset sale Loss from asset sale save Ignore the message press enter Double click on depreciation folder Accumulated depreciation account for ordinary depreciation 100210 :400303 :300102 : 300103 :400302 :AML30000 Furniture & Fixtures :400500 :300102 :300103 :400302 :AML 20000 P & M

182

Expense for ordinary deprecation Save Ignore the message press enter Double click on account determination folder Select account determination Double click on Balance Sheet accounts folder Acquisition: Acquisition production costs Loss made on asset retirement w/o revenue Clearing account revenue from asset sale Gain from asset sale Loss from asset sale Save Ignore the message press enter Double click on depreciation folder

:400500

:AML 31000 vehicles

:200020 :400303 :300102 :300103 :400302

Accumulate depreciation for ordinary depreciation Expenses account for ordinary depreciation Save Ignore the message press enter Double click on account determination folder Select account determination progress Double click on Balance Sheet accounts folder Acquisition :Acquisition and production cost Loss made on asset retirement w/o revenue Clearing accounts revenue from asset sale Gain from asset sale Loss from asset sale Select save button or Ctrl+S Ignore the message press enter

:100215 :400500

:AML40000 Capital Work In

:200025 :400303 :300102 :300103 :400302

183

Specify document type for posting of deprecation: Up to integration with general ledger the path is same Post-Deprecation to the GL Specify Document type for posting deprecation-Double click on define document type (Tr code is OBA7) Select type AF Deprecation postings Select details button Note the number range 04 Select number range information button Give the company code :AML

Select change intervals button Select intervals button Number range Year From no. To no. Select external check box Enter and save Ignore the warning message press enter As per SAP documentation : From ECC5 onwards Up to 4.7 EE :04 :2008 :700001 :800000

Not to select external check box Select external check box

When we select external check box, we have to give what should be the document number at the time of posting. There is an exception for deprecation postings also we have to select external check box In normal postings we are posting are document at a time. Incase of deprecation / when we run depreciation number of documents will be generated at a time based on account determination 04-2008 -700001 -800000 Select external check box AML 10000 Land AML11000 Buildings AML20000 Plant & Machinery

Depreciation account Assessment for

184

AML30000 Furniture & Fixtures Account determination AML31000 Vehicles AML40000 Capital work in Progress When we run depreciation 4 documents will be generated automatically every month. 700001 Depreciation DR To Acc Dep Buildings

700002

Depreciation DR To Acc. Dep-Plant & Machinery Depreciation DR To Acc Dep Furniture & Fixtures Depreciation DR To Acc Dep -Vehicles

700003 700004

Specify intervals and posting rules: Same path (next step) (Tr code is OAYR) Select company code AML

Double click on posting rules folder Select monthly posting radio button Save Press enter to save in your request Specify rounding for net book value and /or deprecation: Path :SPRO-Financial accounting-Asset accounting-Valuation Amount specifications (company code/Deprecation area) Specify rounding of net book value and /or deprecation Ignore the message press enter Select company code :AML

Double click on rounding specifications folder Select area 01 book deprecation Select details button Select automatically calculated depreciation check box Select arithmetic rounding radio button Save Press enter to save in your request 185

Define screen layout for asset master data: Path :SPRO-Financial accounting-Asset accounting-Master data-Screen layoutDefine screen layout for asset master data Double click on define screen layout for asset master data Select layout :AML1 Land

Double click on logical fields groups folder Select 2 posting information Double click on field group rules folder Capitalization data make it required entry field Select main number check box Select sub-no check box Select copy check box We have created AML1 by copying layout 1000 Afterwards we create XYZ layout by copying AML1 what ever fields we have chosen for AML1 should be copied XYZ Select save button or Ctrl+S Press enter to save in your request Select back arrow Select 3 time dependent date Double click on filed group rules folder Business area make it required entry field Select main no.check box, sub no.check box Save Select back arrow two times The same procedure is to the followed for layout AML 2 Buildings AML 3 Plant & Machinery AML10 Furniture & Fixtures AML5 Vehicles AML6 Capital Work in Progress Define screen layout for asset deprecation areas: Same path (Tr code is AO21) Select screen layout 2000 deprecation on asset sub no.level

186

Double click on field groups folder Depreciation keys make it required entry filed Select main no.check box Select sub-no.check box Select copy check box Save Deprecation keys creation (Rate+ Methods) 1. Define base methods 2. Define declining balance method 3. Define period control methods 4. Define period control methods 5. Maintain deprecation key First steps will be assigned in 5th step and 5th step will be assigned in Asset master. 1. Define base methods: Path :SPRO Financial accounting-Asset accounting-Depreciation Valuation methods Depreciation key-Calculation methods Define base methods Base method :0014 Ordinary :Explicit percentage (after end of life) A) Ordinary deprecation B) Explicit percentage creation percentages rate given in Companies Act Schedule XIV C) After end of line If the next box value becomes zero no depreciation should be calculated. Define declining balance methods Same path Give the Char of Depreciation AML Enter Note down decimal balance 001 002 Decimal factor 2 Max percentage 20 Beginning years :Wear and tear will be less Acquisition value 100000 Rate of depreciation 5% First year 5 Second year 5 Third year 5 Fourth year 5 --20

187

First 4 years :100000*5% *98% (2% discount as per companies act) 5th year onwards :100000*5% Define multi level methods: (Tr code is AFAMS) same path select new entries button multilevel method Description Validity star Save Press enter to save in your request Double click on levels folder Select new entries button Acquisition year Year Periods Base value Percentage Save Acquisition year :9999 :9999 :999 :12 :Select 01 Acquisition value :5 :A :5% SLM :Select from ordinary deprecation on star date

We have given say any year 2008- This rate is applicable for the assets purchased in the year 2008 Next year also we are purchasing an asset having 5% rate-we have to create acquisition year once again in the next year. When we give 9999 purchase can be in the year 2. Years 999 A) 5% SLM rate 20 years (100/5) B) 5% WDV rate ? C) 1% SLM rate 100 years (100/1) D) 1% WDV rate ? 999 max no. of year In base method once the net book value becomes zero Dot calculate depreciation . In some countries.

188

First 5 years 5% Next 5 years 10% Next 5 years 15% 3. Periods 12 months 4. Base value 01 Acquisition value in case of SLM 24 Net book value incase of WDV 5. Percent 5 rate of depreciation 6. Reduction 1 Acquisition vale 100000 1% Scrap value 1000 -----99000 Dep 5% only on 99000 7. Remine life Percentage method India Useful life method Machine no.1-In year 2003 Useful life :20 Years Going for SAP in 2008 Select rem life Asset master -15 Years

Select acquisition year 9999 Double click on Multi level method folder Select next entry button Multilevel method A2 Description :5% WDV Validity star :From ordinary depreciation star date Save Select acquisition year 9999 Double click on levels folder Select new entries button Acquisition year :9999 Year :999 Periods :12 Base value :Select 24 net book value Percent :5 Save

189

Maintain period control methods: Same path Give the Chart of deprecation :AML Enter Select new entries button Period method Description Acquisition year Add year Retirement year Transfer year :006 :AML period control method :Select 01 pro rate at period start date :Select 01 :01 (Retirement mean sale) :01

Press enter to save in your request

Maintain deprecation key: Same path Tr code is AFAMA Select new entries button Depreciation key Description :AML1 :5% Straight line dep.method

Select period control according to fiscal year check box Select dep. to the day check box Save Ignore the warning message press enter Press enter to save in your request Double click on assignment of calculation methods folder Select new entries button Depreciation type Phase Base method Declare balance method Period control method :Select ordinary deprecation :Select from the start of depreciation :0014 :001 :006

190

Multilevel method :A1 Class :Select straight line depreciation Save Select back arrow 4 times Select depreciation key :AML1 Select activate button Save Select new entries button Depreciation key :AML2 Depreciation :5% written Down Value Deprecation method Period control according to Fiscal year check box Select depreciation to the day check box Save Ignore the warning message press enter Double click assignment of calculation methods folder Select new entries button Depreciation type :Select ordinary depreciation Phase :Select from the start of depreciation Base method :0014 Declare balance method:001 Period control method :006 Multilevel method :A2 Class :Select declining balance depreciation Save Select back arrow four times Select depreciation key AML2 Select activate button Save Select first page control page up button Select depreciation key :0000(no depreciation no interest ) Select activate button Save

191

FI END USER AREA: Create of main asset master: Path :Accounting-Financial accounting-Fixed assets-Asset Crete Asset (The Transaction code is AS01) Asset class Company code Enter Give the description Capitalized on Select time dependent tab Business area :AMLH :Machine no.1 :18.04.2008 :Select AML2000 Department A :AML

Select depreciation area tab Depreciation key Useful life Period :Select AML1 :15 years :6 months

Ordinary depreciation start date :18.04.2008 Note: Commissioning date Indian system, sum countries is next month first day Eg. 01/05/2008) save Creation of sub asset master Path :Up to fixed assets the path is same-Asset-Create-Sub number Asset(The transaction code is AS11) Asset Company code Enter Description Capitalized on :Motor :29.11.2008 :200001 :AML

Select time dependent tab Select deprecation area tab

192

Change the depreciation key AML2 Useful life Period :15 years :01

Ordinary depreciation:29.11.2008 Save Main asset purchase posting: Path :Accounting-Financial accounting-Fixed asset Posting-Acquisition-External acquisition -With vendor (Transaction code is F-90) Give the document date and posting date Type Company code Posting key Account Enter Ignore the warning message press enter Amount Business area Text Posing key Account Transaction type Enter 1st Rule: Sub asset master with reference to main asset master 200001-1 with reference to 200001 2nd Rule Main asset with reference to asset also 200001 with reference to AML2000 Dept A 3rd Rule Account determination is specified in asset class AML200000 Plant & Machinery specified in AML2000 Dept A :500000 :AMLH :Machinery purchase posting :70 Debit asset :Select 200001 -0 Machine no. :Select 100 External asset acquisition :18.04.2008

:KR (Vendor invoice) :AML :31 Vendor credit :4200001

193

4th Rule For account determination we assign accounts based on the nature of transaction For AML2000-Incase of acquisition-2000010 Plant & Machinery Amount enter :* Text :+ From the menu select document Simulate and save Sub asset purchase posting (F-90) Give the document date Type Company code Posting key Account no. Enter Amount Business area Text Posting key Account Transaction type Enter (Applicable 1st rule) Amount Text :* :+ :100000 :AMLH :Motor purchase posting :70 :200001-1 that motor :100 :Todays date :KR :AML :31 :4200001

From the menu select document Simulate and save REPORT TO VIEW SUB ASSET WISE, YEAR WISE VALUES Path :Accounting Financial accounting Fixed assets Asset Asset explorer (Tr code is AWO1N) Give the company code Asset no. Sub No. Fiscal year :AML :200001 :0 :2008

194

Enter Select Display depreciation calculation button Select period information button Select back arrow Select compression tab Change the asset to 200001 Sub no. Enter Select planned values tab Change the fiscal year to 2009 Enter Select display depreciation calculation button 2nd Report Report to view for all assets for particular period Path :Accounting-Financial accounting Fixed assets Information system Reports on asset accounting Asset balances Balance lists Once again asset balances By business area (Tr code is S_ALR_87011965 Press all selections button (Shift +F7) Give the company code Report date Execute Double click on Dept A Double click on Machine no.1 Select back arrow 3 times Change the report date to 30.04.2008 Execute Double click on Dept A :AML :31.12.2008 :1

195

Depreciation run: Path :Accounting Financial accounting Fixed assets -period processing depreciation run Execute (Tr code is AFAB) Give the company code Fiscal year Posting period :AML :2008 :1

Select planned posting run radio button Select test run check box (Note :If you run in middle of year select unplanned posting run radio button) Execute Ignore the warning message press enter Select error list button (F7) (Right side corner) Select back arrow Deselect text run check box From the menu select program Execute in back ground Enter Select continue button To schedule in the rights select date /time button Give the schedule start date :01.12.2008 Time :Give HR 23.00 Save To post immediately select immediate button Save Note down get a message background job was scheduled for program RA POST 2000 To check whether the job or not from the menu select System Jobs-Job overviewServices select execute button To view the document posted: (Tr code is FB03) Select document list button Give the company code :AML Document type :AF Execute Double click on document no.

196

Use the Tr code is AFAB Company code :AML Fiscal year :2008 Before Dep run for May 2008 and after Dep run for April 2008 we have commissioned an asset with back date 200002-0 Machine no.2 25.04.2008 Posted period 2 1. select planned posting run radio button posting as per plan (earlier we have selected monthly posting) For 200001-0 from 1st May 2008 to 31st May 2008 For 200002-0 for 25th April 2008 to 31st May 2008 Report run: Before run for May Posting period Select report run System checks which assets are commissioned in April and not posted depreciation. 200002-0 from 25th April 2008 to 30th April 2008 Once it is completed Posting period 2 Select planned posting run 200001-0 From 1st May 2008 to 31st May 2008 200002-0 from 1st May 2008 to 31st May 2008 Repeat run is possible only after planned posting run We have run depreciation up to October 2008 -now we have commissioned an asset with April date repeat run is possible only for last planned posting run-In this example only for October. Restart Rare cases server is down during processing time system gives message restart.

Unplanned posting run: Posting run not as per plan, We have run for April We want to run May to November Dep. At a time. Posting period 8 Select unplanned posting run Depreciation will be posted from May to no.at at time.

197

Asset sales : 200001-0 Machine no.1 Acquisition value Acquisition depreciation Net book value 30.04.2008 Asset sales on 01.05.2008 Profit on asset sale

500000 890 --------499110 501000 ---------1890

1to check fields status for field status group G052 use the Tr code is OBC4 Select field status variant :AML Double click on filed status groups folder Double click on field status group G052 Accounts for fixed assets retirement Double click on Asset accounting Asset retirement make it required entry field Save Press enter to save in your request ASSET SALE Path :Accounting financial Accounting Fixed assets Posting Retirement Retirement with revenue with customer (F-92) Give the document date & Posting date :01.05.2008 Type Company code Posting key Account no. Enter Ignore the message press enter Give the amount Business area Text Posting key Account no. Enter :501000 :AMLH :Asses sale :50 :300102 Asset sale :DR :AML :01 :6600001

198

Amount Business area Text Select asset retirement check box

:* :AMLH :+

From the menu select document Simulate Enter Asset no. Sub number Transaction type :200001 :0 :210 comes by default (210 stand for retirement with revenue)

Give the asset value (Capitalization date):01.05.2008 Select complete retirement check box Enter Contra 01 70 40 75 50 01 50 Customer Account Dep P & M 200001-0 Asset Sale Plant & Machinery 2000001-0 Profit on asset sale Customer P&M 501000 890 501000 500000 1890 501000 501000

We get a message correct the marked line item. Double click on blue font line item Select display document overview button Asset sale on 20.05.2008 Sale 2000001-0 Machine 01 Customer 501000 Acquisition value 500000 70 Acc Dept P & M 1500 Acc Dep up to 19.05.2008 1500 2000001-0 ---------Net book value 19.05.2008 4985000 40 Asset sale 501000 50 Asset sale 501000 75 Plant & Machinery 500000 Asset sale on 20.05.2008 501000 2000001-0 CONTRA ---------50 Profit on asset sale 2500 profit on asset sale 25000 Depreciation A/c 3014 890 DR 2015 3115 610 DR (Dep up to 19/05/2008) Accumulated Depreciation account 1500 3014 890 3115 610

199

ASSET TRANSFER When we transfer an asset from one unit to another unit with the company code we have to transfer at cost HYD BGL 200001-0 Capitalization date 20/04/2008 To transfer asset on 01.05.2008 to BGL To transfer acquisition value To transfer accumulated depreciation from the date of receipt (From 01/08) depreciation will be calculated in Bangalore unit 1st Method 2d Method Two step procedure one step procedure A) Creation of asset master in BGL (AS01) Creation of asset master and transfer values B) Transfer values Path: Accounting Financial accounting Fixed assets Posting Transfer Transfer with in company code (ABUMN) Give your company code :AML Ente Give the asset no. 200001 Sub No.0 Document date Posting date Asset value date Text :01.05.2008 | :01.05.2008 | Todays date :01.05.2008 | :Asset Transfer

Select new asset radio button Give the description Asset class Select master data button Give the business area :AMLB :Machine no.1 :AML2000 Dept A

Select additional data button Give the capitalized on 01.05.2008 Select depreciation area tab Give the depreciation key :AML1 Useful life Period :20 years :5 months

200

Ordinary depreciation date :01.05.2008 Select back arrow Enter Select save button or Ctrl+S Go and see the document FB03 Give the document no.30 Company code Fiscal year Enter 1) When we want to transfer no. of assets at a time go for two step procedure 2) When the asset has to be created in the receiving unit as a sub asset goes for two step procedure. Asset scrapping 200000-1 Motor in Hyderabad unit 29.11.2008 This cant be sold transferred /used we can scrap the asset Scrap asset on 01.01.2009 It calculates depreciation up to 31.12.2008 The net book value will be charged to P & L Account Impairment of assets (AS28) If the expected relation of the asset is less than net book value and future cash flows are negative, we have to impair the asset for the difference. To check motor value as on 31.12.2008 (Tr code is S_ALR_87011965) Press all selections button Give the company code Business area Report date Select execute button Double click on Dept A :AML :AMLH :31.12.2008 :AML1 :2008

Asset Scrapping: Path :Accounting Financial accounting Fixed Assets Posting RetirementAsset retirement by scrapping (Tr code ABAVN)

201

Give the asset no.200001 Sub No.1 Document date :01.01.2009 Posting date :01.01.2009 Asset value date :01.01.2009 Text :Asset scrapping Save Go and see the document (FB03) Document no. :31 Company code :AML Fiscal year :2008 Enter Capital work in progress line item settlement Machinery 01.11.2008 Debit to CWIP Machine No.5 Freight charges 05.11.2008 Asset commissioned as machine no.5 on 31.12.2008 We settle from CWIP to respective asset Commissioning charges 30.11.2008 This is linked with CO this will be covered in the end

202

REPORTS:
Step 1.How to create a folder? Keep the cursor and favorites from the menu select Favorites Insert folder Give the folder name FI reports Enter Step 2. How to attach the report to folder ? Keep the cursor on FI reports folder from the menu select Favorites Insert truncation tr code is (S_ALR_87011965) Double click on asset balances report Step 3. How to attach the report on desktop? Go to report Asset balances on right top select generates a short cut button System description :ECC6 Enter Select OK button Close SAP Icon desktop Double click on asset balances Icon Give the password :oracle (SAP password) Step 4: How to create variant? Go to asset balances report Give the company code Report date :AML :30.11.2008

From the menu select go to variant --Save as variant Give the variant name :AML Date Save Now close SAP Double click on asset balances Icon on desktop Give the password Enter Select get variant button (Select asset balances S_ALR_87011965) Execute Select :AML 203 :oracle :30.11.2008.

Chart of Accounts List Path :Accounting Financial accounting General ledger Information system General ledger reports Master data Chart of account- Chart of account (S_ALR_87012326) Give your chart of accounts Execute TRAIL BALANCE Path: Up to general ledger report the path is same -Account balances Korea-Trail Balance (Tr code is (S_ALR_87012310) :AML

Country Trail balance

:Korea :South Korea :AML

Give the company code Execute

Ignore the warning message press enter Select current layout button Keep the fields GL account GL account long text Closing balances Enter To down lead to excel from the menu select list export spread sheet Enter List >Export local file Select spread sheet radio button Enter See directory file name :AML.xls Select generate button

204

LEDGER: Path :Accounting Financial accounting General ledger Periodic processing closing Document Balances audit trail All accounts -General ledger from the document file (Tr code is S_ALR_87100205) Give the company code Execute :AML

(Select menu bar Settings-Layout Current button ) or Select current layout button(Ctrl+F8) Keep the fields document no. Posting date From the hidden fields column Select text fields Select left arrow Select debit amount in local currency Select left arrow Select credit amount in local currency Select cumulative balances Select left arrow Select total check box for debit amount in local currency, Credit amount in local currency Select copy button To go the document level Double click an amount no. Select call up document over view button VENDORS LIST Path :Accounting Financial accounting Accounts payable Information system -Reports for accounts payable accounting Mater data Vendor list (Tr code is S_ALR_87012086) Give the company code :AML Select address and telecom check box Execute

205

Vendor wise patches Path :Up to report for account payable accounting the path is same Vendor balances vendor business (S_ALR_87012093) Give the company code Execute Each vendor wise Out standing lit of vendors: Path :up to reports for accounts payable accounting the path is same Vendor Items- List of Vendors Open item for printing (S_ALR_87012083) Give the company code Execute Age wise analysis of vendors: Path :Up to vendors column item the path is same -Vendor payment history with open item sorted list (S_ALR_87012085) Give the company code Summarization level :AML :0 :AML :AML

Select days overdue squirted list check box Execute Vendor advances report Path :Up to vendors column items the path is same List of Down payments open on key date vendors (S_ALR_87012105) Give the company code Execute Vendor ledger: Path :Open and cleared up to vendors: Item the path is same List of vendor line item (S_ALR_87012103) Give the company code Execute :AML :AML

206

Depreciation fore cost Path :Accounting Financial accounting Fixed Assets Information system -Reports are asset accounting Depreciation fore cost-Depreciation on Capitalized Assets (Depreciation simulation) (S_ALR_87012936) Give the company code Report date Execute :AML :31.03.2011 (Give the any month end date)

Fixed assets schedule as per schedule VI of Companies Act Path :Information system Accounting Financial accounting Fixed assets -Asset history sheet (Tr code is AR02) Give the company code :AML Report date :31.03.2009 Select group totals only radio button Execute Select assets button Double click on asset retirements

207

DATA TAKEOVER
Master uploading Balance uploading Master uploading: GS Master Vendor masters Customer masters Asset masters Material master

:FS00 :XK01 :XD01 :AS01 :MM01

Create an excel file conversion to text file Up loading to SAP Legacy System Migration Work bench (LSMW) Batch data Communication (BDC) Computer aided testing tool (CATT)

ABAP :They teach all 3 methods LSMW:Job of functional consultant Open an excel file and note down for which fields values are to be uploaded GL Accou nt no. Com pany code Acco unt Grou p P& L Stat eme nt A/c Balan ce Sheet A/c Short Text Long Text Acc ount curr ency Only Balanc e in local curren cy X Line item displ ay So rt ke y Field statu s group

10000 1 20012 5 30000 5 40010 1

AML

SCPL

AML

CAST

AML AML

SALE

PRSN X

PREF Share cap. Invento ry Stores Sales trading Wages account

PREF Share Cap. Inventory Stores Sales Trading Wages account

INR

00 1 00 1 00 1 00 1

G001

INR

G001

INR INR

X X

X X

G001 G001

Delete above column headings Delete other sheets (like sheet 2 , sheet 3) Select complete sheet Press right mouse button 208

Select format cells Select number Category Text Select ok button From the menu select file save as Save type File name Select save button Select no button Select cancel button From the menu select file close Select no button 2. Open an excel file and not down technical name of each filed technical name shall be noted down as per step one order Open an excel file Component Data type length :select Text (tab delimited) :AML Text

Open SAP FS00 Give the GL No.100000 Equity share capital Company code Enter Keep the cursor on GL A/c press F1 Select technical information button Double click field name SAKNR Copy component SAKNR in excel 1 component column Data type Length :C :10 :AML

Copy component BUKRS that is company code in excel component column

Data type Length

:C :4

209

Select back arrow in SAP Keep the cursor on account group Press F1 Select technical information button Double click on filed name KTOKS Copy component KTOKS that is account group in excel component column Data type Length :C :4

Copy component XPLACCT That is P & L statement account in excel component column Data type Length :C :1

Copy component XBILK that is I Balance Sheet A/c in excel component column Data type Length :C :1

Copy TXT20-ML That is GL A/c short text in excel component column Data type Length :C :20

Copy component TXT50_ML That is GL long text in excel component column Data type Length Select back arrow Select control data tab Keep the cursor on account currency press F1 Select technical information button Double click on filed name WAERS Copy component WAERS that is account currency in excel component column Data type Length :C :5 :C :50

Copy XSALH that is only balance in local currency in excel component column Data type :C

210

Length Line item display component column Data type Length

:1 :copy component XKRES that is line item display in excel

:C :1

Sort key: copy component ZUAWA that is sort key in excel component column Data type :C Length :3 Copy component FSTAG that is field status group in excel component Data type :C Length :4 Save the file an ex file, file AML Up loading of master in SAP (Tr code is LSMW) Note: LSMW used for create No. of GL accounts at a time. Ignore the message press enter Project Subproject Object Select create entry button Description Enter Sub project description FI Area Enter Object name Enter Select continue button (F8) Select double click Display click change button (Shift +F7) Select execute button Select batch in put recording radio button From the menu select Goto recording Overview Select create recording button (Ctrl +F1) Give the recording name :AMLGL :GL master up loading :AML Project :AML :FI :GLMaster

211

Description Enter FS00 Give the GL Account Company code

:GL Master uploading

:100305 :AML

From the menu select GL Account create Account group select secured loans Select balance sheet account radio button Short text and GL account long text :IDBI rupee term loan Select control data tab Select only balances in local currency check box Select line display check box Sort key Select create 1 bank /Interest tab Field status group Save Keep the cursor on FS00 Select default all button Save Select back arrow two times Give the recording name Enter and save Select back arrow Execute :AMLGL :G005 Bank Accounts :001 Posting date

Select create a structure button Source structure Description Enter and save Select back arrow :AMLSTR :AML GL Structure

212

Execute Keep the cursor on AMLSTR Select table maintain button Copy from AML excel component column in SAP field name column Copy from excel AML excel data type column in SAP type column Copy AML excel length column in SAP length column Verify the copies data some data not copied copy to next page Save

Select back arrow Select back arrow once again Select save button or Ctrl+S Execute

Select back arrow Execute Kept the cursor on AMLGL Save Back arrow Execute From the menu select Extras-Auto field mapping Press enter Go on select accept proposal button (Press Accept proposal button many times) Till we get the message Auto field mapping completed Enter and save Select back arrow Skip maintain fixed values, transactions user defined routines Select specify files radio button

213

Execute Keep the cursor on the PC (Fronted) Select add entry button Select file Name :AML text :GL Master uploading

Select tabulator radio button Enter & Save Select back arrow Execute Save Select back arrow Execute Execute once again Select back arrow two times Skip display read data Select convert data radio button Execute Execute once again Select back arrow two times SKIP Display converted data Select create batch input folder session Execute Execute once again We get a message /batch input folder With 4 transactions created Ignore the message press enter Execute Select session name GL master Select process button Select display errors only button Select process button

214

We get a message processing of batch input session completed Select exit batch input button To view accounts created (Tr code is FS00) Selected drop down button for GL A/c No. Company code :AML Enter (Note: check it uploaded GL Accounts 100001, 200125,300005,400101)

215

BALANCES UP LOADING Company going live in SAP from 1st December 2008 unloads take balances as on 30th November 2008 and enter in SAP P & L Account balances as well as Balance Sheet Account balances. Company going live in SAP from 1st April 2008 on wards, - Take Balance Sheet account balances as on 31.03.2008 in SAP dont enter all the transactions Reasons: 1. In normal accounting all vendors, Customers, Assets are part of General Ledger where as in SAP we have sub ledger concept. 2. In normal accounting for vendors/ customers Purchases /Sales transactions and advances will be entered in one account where as in SAP we have normal items and special GL Item.

3. In normal accounting for Fixed Assets- We have account wise acquisition value and accumulated depreciation where as in SAP for Fixed Assets, we have each sub asset wise acquisition value and accumulated depreciation. 4. In normal accounting depreciation in a provisional figure where as in SAP it is actually calculated figure.

5. In normal accounting raw material consumption is a derived figure. Opening stock +Purchases Closing stock whereas in SAP we maintain each material wise quantity, rate and amount and raw material consumption is actually calculated figure. 6. In normal accounting we will not pass production entries and delivery entries where as in SAP, system pass production entries and delivery entries with production cost. Procedure 1) We should enter day to day date in SAP production client till balances are up loaded and tallied. 2) Incase of Vendors /Customers we have to prepare a statement showing only open items which should match with trail balance figure.

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3) Incase of Assets, prepare a statement showing each asset wise acquisition value and accumulated depreciation which should match with trail balance figure. 4) Incase of materials, prepare as a statement showing Material wise, Quantity , Rate and Amount which should match with Trail Balance figure.

5) We have to create 5 dummy accounts under any account group. A) GL Clearing B) Vendor clearing C) Customer clearing D) Asset clearing E) Stock taking F) 6) After uploading balances, if the above 5 clearing accounts become zero, Then our date takeover is correct Trail Balance (For opening balances) Debit Equity share capital Party A/c Accumulated Dep. P & M Machine no.40 Sales P & M Machine no.40 Party X Inventory RM Cash account RM Consumption Credit 500000 100000 300000 400000

500000 200000 100000 150000 350000 --------1300000 =======

---------1300000. =======

1. 2. 3. 4. 5.

GL clearing A/c Vendor clearing A/c Customer clearing A/c Asset clearing A/c Stock taking A/c

1. To take GL Credit side items:Tr code F-02) GL clearing A/c Dr 1300000 To Equity share capital a/c To Vendor clearing a/c To Asset clearing a/c To Sales a/c

500000 100000 300000 400000

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2. To take GL debit side items (F-02) Asset clearing Dr 500000 Customer Dr 200000 Stock taking Dr 100000 Cash account Dr 150000 Raw material consumption Dr 350000 To GL Clearing 1300000 3. A) Prepare a statement showing each vendor wise bill wise open item and advances which showed match with trail balance . Party A Bill no.1 400000 Cr Bill no.2 50000 Cr Bill no.3 30000 Cr Advance 20000Dr 100000 Cr

B) Entry for Vendors (f-43) Vendor clearing Dr 115000 Party A (SPLGLA) Dr 200000 advances to vendor To party A-BIL1 No.1 400000 } Sundry creditors To party A-BIL1No.2 500000 } To party A-Bill No.3 45000 30000 Sundry creditors 4 (A) Prepare a statement showing each customer wise bill wise open items and advances which should match with trail balances Party X 50000 Dr 1800000 Dr 30000 Cr 200000 Cr

Bill no.1 Bill No.2 Advance

4 (B) Customer balances F-22 Party X- Bill no.1 Dr 50000 Sundry debtors Party X-Bill no.2 Dr 180000 Sundry debtors To party X (SPL GLA) 300000 Advances from customer To Customer clearing 200000 Advance from customer 5(A) To make fixed assets P & M GL account and accumulated depreciation plant & Machinery GL Account as non-reconciliation accounts and pass. F-02

40 Plant & Machinery 500000 50 Accumulated Depreciation P & M

300000

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50 Asset clearing

200000

Non-reconciliation means in FS00 For Plant & Machinery GL A/c and accumulated depreciation P & M GL A/c Reconciliation a/c type Assets remove 5 (B) Creation of asset masters: | | AS01 LSMW Use the Tr code is AS01 Asset class :AML2000 Dept A Company code :AML Description :Machine no.40 Give the capitalized date :20.06.2006 Select time dependent tab Business area :AMLH Select depreciation areas tab Depreciation key :AML1 Use life :15 years Period 4 months Ordinary deprecation date :01.04.2008 Save 5 (C ) To take over acquisition value and accumulated depreciation for asset 2000004-0 It will not updated our GL Accounts since account for account type Assets. Path :SPRO-Financial accounting Asset Accounting Asset data transfer manual online transfer Create/Change /Display legacy asset (The Tr code is AS92) Double click on change legacy asset Give the asset no. :200004 Sub number :0 Company code :AML Select takeover values button Ignore the warning message press enter Cumulated acquisition value :500000 Accumulate ordinary deprecation :30000 No book values :200000 Save

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5. D)

To make fixed assets P & M A/c and accumulated depreciation P & M account as reconciliation accounts.

Path :SPRO-Financial accounting Asset accounting Preparing for production start up-Production start up-Set or reset reconciliation accounts (Tr code is OAMK) Select company code :AML Double click on change control of reconciliation account folder From the menu select Edit selections select all Select set reconciliation indicators for all accounts button Save Press enter to save in your request 6 (A) To propose a statement showing each material match with trail balance. Material RM1 RM2 RM3 Qty 2000 7000 2500 Rate 20 5 10 Amount 40000 35000 25000 --------100000 ======

6 (B) Creation of material masters (Transaction code MM01) and in accounting view For moving average price RM1 RM2 RM3 20 5 10

Use the transaction code MB1C Movement type :561 RM1 RM2 RM3 Save Qty 2000 Kgs 7000 Kgs 25000 Kgs

Accounting entry will be generated automatically Inventory RM Dr 1000000 BSX To stock taking 1000000 GBB BSA

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Closing procedure In the year end what steps we have to do April 2008 March 2008 fiscal year 2008 In last week of March 2009 1. To carry forward Vendor and Customer balances to next year. Path Accounting Financial accounting-Accounts payable Periodic processing Closing Balance carry forwarded ( Tr code is F.07) Give the company code :AML Carry forwarded fiscal year :2009 Select , select customer check box Select , select vendors check box Deselect detail log check box Execute Ignore the warning message press enter One time exercise for each year

2. To carry forwarded asset balances We can open 2 years at a time 2007 2008 To open 2009 we have to close 2007 A) To check which year is closed for asset accounting

Path :Accounting -Financial accounting Fixed assets Periodic processing year end closing Undo-Entire company code (Tr code is 0AAQ) Select position button Give the company code Enter To close fiscal year 2008 (not mandatory step) Up to periodic processing the path is same Year end closing Execute (Tr code is AJAB) Company code Fiscal year to be closed 2008 Deselect text run check box Form the menu select Program- Execute in back ground :AML

:AML

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Enter Select immediately button Select save button (down side) We get a message Back ground job was scheduled for program RAJABS00

To check whether the job is processed or not From the menu select System Services-Jobs Job overview Select execute button To view result of the job Select job RAJABS00 check box Select spool button Select spool no .check box Select display content button To close only year for asset a accounting we have to post depreciation for all assets and for all months C) To open fiscal year 2009 for asset accounting Path :Up to period processing the path is same Fiscal year change (Tr code is AJRW) Give the company code New fiscal year Deselect test run check box From the menu select program execute in back ground Enter Select immediate button Select save button We get a message back ground job was scheduled for program RAJAWE_00 To check whether the job is processed or not From the menu select System Services Jobs job overview Select execute button :2009 :AML

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To view the result of job Select job RAJAWE00 check box Select SPOOL button Select SPOOL no.check box Select display contents button 3. To carryforward GL Balances Path :Accounting Financial accounting General Ledger Periodic processing Closing Carryforward-Balances carryforward new Tr cod is FAGLGVTR Ledger Company code :select OL leading ledger :AML :2009

Carryforward fiscal year Deselect test run check box

Select output list of results check box Select balances in retired earning check box Execute Select retired earning accounts button Select back arrow Select Balances sheet accounts button To copy number range interval for next year Path :SPRO-Financial accounting Financial accounting global settings Document Document number ranges copy to fiscal year (Tr code is OBH2)

Ignore the message press enter Company code :AML To fiscal year details under source fiscal year To fiscal year under target fiscal year details Execute Select Yes button

:2008 :2009

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To open periods for next year April 2009-March 2010 April 2009-April 2009 Fiscal year 2009 1st 1, 2009-1,2009 April 2008-March 2009 2nd | | Mandatory Optional

March 2009-March 2009 12, 2008-12,2008

Path :Up to document the path is same Posting periods Open and close posting periods Select position button Posting period variant Enter For AML From period 1 is 1 (April ) Year To period Year :2009 :1 :2009 :AML

From period Period Year To period Year Select save button or Ctrl+S Save in your request How to open special periods

:2 :12 :2008 :12 :2008 March to March

On 15.04.2008 Accounts Dept Finalized profitability management, management adjustment entries. To post in special periods April 2009 March 2010 Fiscal year 2009 April 2009 April 2009

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1st 1, 2009 -1, 2009 April 2008 March 2009 Fiscal year March 2009-March 2009 13,2008 -13,2008 Same path :OB52 For variant :AML From the period2 Year To period Year Save

:13 :2008 :13 :2008

How to post to special periods (F-02) (Adjustment of management entries ) Document date & Posting date Type Company code Posting key Account no. Enter Change the period to 13 Enter Ignore the warning message press enter Amount Business area Text Posting key Account no. Enter Amount Business area Text :* :AMLH :+ :500000 :AMLH :Salaries provision :50 :100500 Outstanding exp :28.03.2009 :SA :AML :40 :400100 Salaries A/c

Select document Simulate and Save

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Go and see the GL A/c FS10N Give the GL A/c No. :400100 Salaries A/c Fiscal year :2008 Business area :AMLH Company code :AML Execute

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BANK RECONCILIATION Check Deposit | -------------------| | Manual Electronic Bank statement | -----------------| | Manual Electronic

Manual check deposit /manual bank statement For each current account we have to create accounts Account no. should with 0 Open item 1 Open item 2 Open item 3

1. 2. 3. 4. 5.

Main bank account Check issue account Check deposit A/c clearing account Bank Changes

If we have 100 Bank current accounts instead of assigning accounts 100 times we assign only one time using masking. 1. Main bank account +++++++++0 2. check issue account +++++++++1 3. check deposit a/c +++++++++2 4.clearing account +++++++++3 Always main bank account balance and bank statement balance will be same. Flow: Sales: 1. Sales invoice posting F-22 Customer A/c Dr To Sales 2. Check deposit A) Bank key B) Bank account C) Pay slip no. D) Transaction type E) Customer F) Bill no. G) Amount and Save 100000 100000

IDBI Check deposit a/c Dr 100000 To Customer with clearing 100000 3. Enter manual bank statement

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A) If the check deposit credit is not there open items in bank check deposit A/cChecks Deposited but not credited B) If the check deposit credit comes in bank statement A) Pay slip no. B) Bank key C) Bank account D) Transaction type E) Amount and save IDBI main bank A/c Dr 100000 To IDBI Check deposit a/c 100000 (with clearing)

Purchases : 4. Purchase invoice posting F-43 Inventory RM Dr 200000 To Party A/c 200000 5 Outgoing payment with clearing F-53 Party A/c Dr with clearing 200000 To IDBI check issue A/c 200000 6. Manual check creation Assign check no.to payment doc.no. 7. Enter manual bank statement A) If the check debit is not there open items in bank check is issue A/c check issued but not presented. B) If the check issue debit is there A) Bank key B) Bank account C) Transaction type D) Check number E) Amount and save IDBI check issue Dr with clearing 200000 To IDBI Bank a/c 200000 Bank charges direct debits 8. Enter manual bank statement A) Bank Key B) Bank account C) Transaction type

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D) Amount and save Bank charges Dr To IDBI main bank a/c IDBI main bank A/c 3 5000 5000

IDBI bank statement 7 B) 20000 8) 3 B) 100000 Cr 500 DR

10000 7 B) 20000 8) 500

IDBI check Dept A/c 2. 100000 3. 100000 IDBI Check issue A/c 7 B) 20000 5 20000

1. Creation of GL masters (FS00) Give the GL A/c no. Company code Select with template button Give the GL A/c no.200105 SBI A/c Company code Enter Change short text and GL Account long text to IDBI main bank Save GL A/c No. Company code :200131 :AML :AML :200130 Wages A/c :AML

Select with template button Give the GL A/c NO.200130 Company code Enter Change short text and GL A/c long text to IDBI check issue Select control data tabs Select open item management check box Save :AML

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GL A/c No. Company code Select with template button Give the GL A/c No. Company code Enter Select type/description tab

:200132 :AML

:200131 :AML

Change short text and GL A/c long text to IDBI check deposit Save GL A/c No. Company code Select with template button Give the GL A/c No. Company code Enter Change GL A/c short text and GL A/c long text to Bank charges Save Define House Bank (FI12) Give the company code Enter Select new entries button House bank Bank country Bank key Save Give the name IDBI bank limited Street City Bank branch Enter :Bank Street, Koti :Hyderabad :Main branch :IDBI :IN :AMLIDBI1 :AML :400300 Rent A/c :AML :400304 :AML

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Press enter to save in your request Double click on bank accounts folder Select new entries button Account ID Description Bank account no. Currency GL A/c No. Save 3. Creation of Check lots (Tr code is FCHI) Give the paying company code House bank Account ID Select change status button Select create button (shift+F5) beside details button Lot no. Check no. To no. :1 :100001 :100100 :AML :IDBI :IDBI1 :IDBI1 :IDBI current no.1 :AMLIDBI1234 :INR :200130 IDBI Main bank

Select non-sequentional check box Short information Purchase date Enter and save Define posting keys and posting rules for check deposit Path :SPRO-Financial accounting Bank accounting Business transactions Check deposit Define posting keys and posting rules for check deposit Chart of accounts Enter Select new entries button Accounts symbol :AMLA :AML :IDBI bank :Todays date

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Text Accounts symbol Text Accounts symbol Text Accounts symbol Text save

:Main Bank :AMLB :check issue :AMLC :Check deposit :AMLD :Bank charges

press enter to save in your request double click on assign accounts to account symbol folder select new entries button accounts symbol :AMLA

Account symbol Currency GL A/c AMLA INR +++++++++0 (9 times plus) AMLB INR +++++++++1 (9 times plus) AMLC INR +++++++++2 (9 times plus) AMLD INR 400304 Bank Charges A/c Save Double click create keys for posting rules folder Select new entries button Posing rule AML1 AML2 AML3 AML4 Save Text Check receipt Clear customer Check deposit clearing in Bank Check issue clearing in Bank Bank charges direct debit by banks

Double click on define posting rules folder Select new entries button

Notes: Check receipt clear customer AML1-Check receipt clear customer IDBI check deposit Dr GL To Customer with clrg SL Doc.Type DZ

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Posting rule Posting area Debit posting key Account symbol Document type Posting type Select next entry button Posting rule Notes: AML2

:AML1 :select 2 sub ledger accounting :40 :AMLC (check deposit) :DZ :select 8 sub ledger a/c

:select AML2 (check deposit clearing in bank)

:Check deposit clearing in bank

IDBI1 Main account Dr GL To IDBI check deposit with clearing GL Doc .type :SA

Posting area :select 1 Bank accounting Debit posting key :40 Accounts symbol :AMLA main bank a/c Document type :SA (GL account document) Posting type :select 5 clear credit GL Account Select next entry button Posting rule :AMLB check issue clearing in bank AML3 Check issue clearing in Bank IDBI check issue with clrg DR To IDBI main bank A/c Doc .type :SA Posting area Debit account symbol Credit posting key Account symbol Document type Posting type Select next entry button Posting rule

GL

:select 1 bank accounting :AMLB :50 :AMLA Main bank :SA :select 4 clear debit GL Account :AML4 Bank charges :Direct debit by bank GL GL

Bank charges Dr To IDBI Main bank A/c Doc type :SA

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Posting area Debit posting key Account symbol Credit posting key Account symbol Document type Posting type Save

:select 1 Bank accounting :40 :AMLD :50 :AMLA :SA :select 1 post to GL A/c

Create and assign business transactions : Path :Up to business transactions the path is same Check deposit Create and assign business transactions (Tr code is OT53) Select new entries button Transaction +/Posting rule Text Transaction +/Posting rule Text Select save button Select cancel button Select Yes button Save Press enter to save in your request Define variants for check deposit Same path ( Tr code is OT45) Select create button Variant :AML1 Name :check deposit variant for AML Enter From the possible fields column Double click on reference document no.(selection) Enter :AML1 :+ :AML1 :Check receipt clear customer :AML1 :- (for posting revenues) :AML1 :Check receipt clear customer reversal

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Column 1 2 3 4

Offset 3 20 37 52

Length 16 4 10

Save Select create request button short description :Work Bench request for AML Enter press enter to save in your request kept the customer on AML1 select activate button create and assign business truncation for manual bank statement path :up to business truncation the path is same Payment transactions manual bank statement Create and assign business transactions select new entries button Transaction +/AML2 AML2 + -

Posting rule AML2 AML2

AML3

AML3

AML3

AML3

AML4

AML4

AML4

AML4

Interpretation Text algorithm Check deposit Check deposit clearing in bank reversal 011 (Outgoing Check issue check :Check clearing in no. different Bank from payment doc.no. 11 Check issue clearing in bank (Reversal) Bank charges direct debit by bank Bank charges direct debit by bank (reversal)

235

Save Press enter to save in your request 011- Check no. different from payment doc.no. purchases

1.

Purchase invoice posting F-43 Inventory RM DR To Party A/c Doc no.1 200000 200000

2. Outgoing payment with clearing Party A/c DR with clearing To IDBI Check issue A/c Doc no.200001 3. Manual check creation FCH5

F-53 200000 200000

Assign check no. to payment doc no. Assign check no.100001 to payment Doc no.200001 Check no. and payment Doc no. are different Define variants for manual bank statement Same path (Tr cod is OT43) Select create button Variant Name Enter From the possible fields column double click on reference doc .number (selection) Enter 4the column (20+16) :36 From the possible field column double click on bank reference Enter From the possible fields column double click on business area :AML2 :Manual bank statement variant for AML

236

Enter (53+13+4):67 Save Press enter to save in your work bench request Keep the cursor on AML2 :select activate button

To make text field optional field for field status groups G001 and G005 (Tr code is OBC4) Select field status variant :AML Double click on field status group folder Double click on G001 Double click on general data Text make it optional entry field Save Press enter to save in your request Double click on G005 Double click on General data Text make it optional entry field Save SALES Sales invoice posting (F-22) Give the document date Type Company code Posting key Reference bill no. Account Enter Amount Business area Text :100000 :AMLH :Sales invoice posting :Todays date :DR :AML :01 :2345 :6600001

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Posting key Account no. Enter Amount Business area Text

:50 :300000 Sales a/c

:* :AMLH :+

Document simulate & Save Manual check deposit Path :Accounting financial accounting Banks Incomings check deposit manual entry (FF68) From the menu select settings Specifications Start variant Enter Bank key Bank account Currency Group Transaction Posting date Value date Currency Enter Amount Reference no. Business area Customer no. Enter & save Save once again From the menu select System >services Batch input Sessions select session name :IDBI-IDBI1 :100000 :2345 (bill no.) :AMLH :6600001 :INR :1 (paying slip no.) :select AML1 (check receipt clear customer ) :Todays date :Todays date :INR :AMLIDBI1 ;AMLIDBI1234 :select AML1

238

Select process button Select Display errors only radio button Select process button We get a message processing of batch in put session completed Select exit batch input button Go and See the customer A/c FBL5N Give the customer no.6600001 Company code :AML Select cleared items radio button Select normal items check box Execute Double click on type DZ Select column document overview button Check deposit credit in bank statement Path :Accounting Financial accounting Banks-Incoming Bank statement manual entry (Tr code is FF67) From the menu select settings specifications Start variant Enter Bank key Bank account Currency Give the statement no. Statement date Opening balance Closing balance Posting date Enter Ignore the warning message press enter :INR :1 :Todays date :0 :100000 :Todays date :AMLIDBI1 :AMLIDBI1234 :select AML2

Transaction

:select AML2 check deposit in bank

239

Value date Amount

:Todays date :100000

Give the reference doc no. :1 (That is paying slip no.) Business area Enter & Save Save once again From the menu select System Services Batch input session Select session name Select process button Select display errors only radio button Select process button Ignore the message and exit batch input button :IDBI IDBI1 :AMLH

Go and see the IDBI check deposit A/c (FBL3N) Give GL A/c No. Company code :200132 :AML

Select cleared items radio button Select normal items check box Execute Double click credit 100000 Select call up document overview button

1.

Purchases

Purchase invoice posting F-43 :Todays date :KR :AML :31 :4200001

Give the document date Type Company code Posting key Account no. Enter

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Give the amount Business area Text Posting key Account no. Enter Amount Business area Text Document Simulate and Save 2.

:20000 :AMLH :Purchase invoice posting :40 :200120 Inventory RM

:* :AMLH :+

Outgoing payment with clearing (Tr code is F-53) :Todays date :KZ :AML :Outgoing payment :200131 (IDBI cheque issue date) :AMLH :20000 :Outgoing payment

Give the document date Type Company code Clearing text Account under bank data Business area Amount Text

Account under open item selection :4200001 Select process open item button Double click on payable amount :20000 From the menu select Document --Simulate & Save 3. Manual check creation (FCH5)

Give the check no.100010 Save 4. Enter manual bank statement (FF67)

Select overview button (F8)

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Keep the cursor on AML IDBI Bank Ltd Select new statement button Closing balance (100000-200000)=800000 Posting date Enter Transaction Value date Amount Bank reference Business area Enter Select save button , save once again From the menu select System Service Batch input Sessions Select session name Select process button Select Display errors only radio button Select process button Ignore the message exit batch input button Go and see IDBI cheque issue account (FBL3N) Give the GL account Company code :AML :200131 IDBI cheque issue account :IDBI-IDBI :AML3 check issue clearing in Bank :todays date :20000 with minus :100010 (cheque no.) :AMLH :todays date

Select cleared items radio button Select normal items check box Execute Double click on debit 20000 Select call up document overview button Bank charges Direct debits Enter manual bank statement FF67

242

Select overview button Keep the cursor on AML IDBI Bank Ltd

Select new statement button Give the closing balance Posting date Enter Transaction Value date Amount Business area Enter & Save :AML4 Bank charges direct debits :Todays date :500:AMLH :79500 :Todays date

Save once again From the menu select System Services Batch input Session Select session name :IDBI IDBI-1 Select process button Select display errors only radio button Select process button Ignore the message and select exit batch input button To view the document posted (FB03) Enter To view bank statements in SAP FF67 Select overview button Double click on AML IDBI Bank Ltd To view the transactions in the statement Double click on statement no.

243

CASH JOURNAL
1) To view daily cash and ban opening balances, Receipts , Payments and closing balance 2) GL Cash account accepts negative cash balance Cash Journal will not accept negative cash balance 3) For petty cash purpose 1. Creation of GL master Petty cash account Current assets-Loans & Advances (FS00) Give the GL A/c No. :200101 Company code Select with template button Give the GL A/c No. Company code Enter Change short text and GL a/c long text to Petty Cash A/c Select create /bank /interest tab Select post automatically only check box Save Define number rage intervals for cash journal documents Path :SPRO-Financial accounting bank accounting Business transactions-Cash journal Define number range intervals for Cash journal Documents (FBCJC1) Give the company code Select change intervals button Select interval button No.range From no. To no. Enter & Save Ignore the warning message press enter :01 :500001 :600000 :AML :200100 :AML :AML

244

Setup cash journal (FBCJC0) Same path Select new entries button Company code Cash journal no. GL A/c No. Currency Document type for GL A/c :AML :0001 :200101 :INR :SA

Document type vendor payment :KZ Document type vendor receipt :KZ :DZ

Document type customer payment

Cash Journal name, Save Press enter to save in your request

:AML HYD petty cash

Create ,Change delete business truncations (FBCJC2) Same path Select new entries button Company code Business transaction type G/L A/c :AML :select R Revenue :300000 :Revenue

Cash journal business transaction Select account modifiable check box Company code Business transaction type GL A/c No. :AML

:select E Expenses :400100 Salaries A/c

Cash journal Business transaction :Expenses Select account modifiable check box Save Press enter to save in your request 245

Setup print parameters for cash journal Select new entries button Company code :AML

Cash journal print program name :RFCASH00 Report variant Correspondence Save Press enter to save in your request Posting to Cash journal Path :Accounting Financial accounting General ledger Posting Cash journal posting (FBCJ) From the menu select Extras Change Cash journal Give your company code Cash journal Enter Select cash receipts tab Business transaction Amount Business area G/L A/c Text Save Select post button Select print cash journal button Ignore the message press enter :select Revenue :5000 :AMLH :300000 Sales A/C :Cash sales :AML :0001 :DEMOEN (Demo English) :select SAP18 Cash document

246

WITH HOLDING TAX (TDS


TDS: Tax deducted at source on Vendors/ Contractors/Local and professional charges TCS: Tax collected at source on Customers/ scrap sale /waste sale TDS is part of CIN (Country India Version) TDS two types Classic with holding Tax Up to 4.6 C SAP CIN from 4.7 EE on words CIN is part of SAP SAP was released in India 1995 SA and CIN February 1996 Finance Budget Govt. made changes to TDS for the changes in Budget. SAP releases Patch (program) February 1997 finance budget changes February 1998 Finance budget changes February 1991 Finance budget changes Extended withholding tax

Released extended with holding tax Original CIN program modified with the budget changes Number changes A) Education cess B) Higher and Secondary Education cess C) Return Contractors annual Return form 26C D) Changed to annual return Form 26 E) Changed to quarterly return Form 26Q F) ETDS TDS on contractors/Professional charges /Rent/Interest other than salaries

247

TDS on contractors (Income Tax Section 194C) 1 Status Company /Partnership firm 2. TDS Rates Basic 2% Surcharges 10% on 2% ED 3% on (basic +Surcharges ) Individual 10% on 2% contract value in the whole year exceed 10 Lakhs other wise NIL 3% on Basic +Surcharge (Note :contract value in the whole year exceeds 1 core other wise NIL)

4. TDS is to be deducted at the time of invoice posting or advance payment posting whichever is earlier 5. If each contract value is less than 20000 and all contract value in the whole year is less than 50000 No TDS is to be deducted. 6. To create only one code for invoice postings and one code for advance postings (Max codes can be created 99) 7. If the contractor does not have taxable income he for lower rate of deduction or NIL rate of deduction . Company has to deduct at lower rate or Nil rate Exemption certificate will be given by Income Tax Dept for each year. 8. In the bill amount includes material cost and conversion charges (composite contacts) To deduct TDS only conversion charges. 9. TDS deducted should be deposited within 7 days from the month end incase of year end credits TDS to deposit within 2 months from the year end. If 7th day comes on public holiday choice to make the payment day before or after. 10. Issue TDS certificate in form 16A to the contractor It can be a monthly certificate or consolidated certificate for the whole year. 11. File quarterly return in form 26Q earlier annual return Form 26 12. Permanent Account Number (PAN) will be allotted at company code level where as Tax Deduction at Source (TDS No./TAN can be obtained at company code level/Business area level/Business places level.

248

Maintain calendar Path :SPRO-SAP Net weaver General settings Maintain calendar Select public holidays radio button Select change button Select create button Select with fixed date radio button Select create button Day Month Short holiday name Long holiday name Enter Ignore the message select Yes button Ignore the message press enter Select back arrow Select holiday calendar radio button Select change button Select create button Calendar ID :A1 (AML HYD Factory Holiday calendar) :1 :select 05 May day :May day :May day

Select assign holiday button Select May day check box Select assign public holiday button Save Ignore the message press enter Select back arrow two times Select factory calendar radio button Select change button Select create button Factory calendar ID Description :A2 :AML HYD Factory calendar

249

Holiday calendar ID

:A1

Work days select Monday to Saturday check boxes Save Ignore the message press enter Check withholding tax countries Path :SPRO-Financial Accounting Financial accounting global settings-With holding tax-Extended withholding tax-basic settings-Check with holding tax countries Select new entries button Country Withholding tax country Description Select save button or Ctrl+S Save in account payable customization request Define withholding tax keys Same path Give the country key :In for India Enter Select new entries button Official withholding tax :194C Name :TDS contractors Save Press enter to save in your request Define Business places (section code ) Path :Up to extend with holding tax the path is same -Basic settings India Define business places Select new entries Company code Section code Name Save Give the name :AML HYD Factory :AML :AMLF :AML HYD factory :IN :IN :India

250

Press enter to save in your request

Assign factory calendars to section code (Business places) Same path Select new entries button Company code Section code Factory calendar ID Rule Save Press enter to save in your request :AML :AMLF :A2 :select day before

Define business place Path: Form the menu select System Services Table maintenance Extended table maintenance (Tr cod is SM30) Table/view Select maintain button Give the company code Enter Select new entries button Business place Description Save Give the name :AML Hyd factory :AMLF :AML Hyderabad factory :AML :J_1BBRANCV

Press enter to save in your request Assign section code to business place (Tr code is SM30) Table /View Select maintain button Give the company code Enter :AML :V_seccode

251

For section code Business place Save

:AMLF :AMF

Press enter to save in your request Define withholding tax type for Invoice posing: Path: Up to Extended with holding tax the path is same Calculation With holding tax type Define with holding tax type for invoice posing Give the country key Enter Select new entries button With holding tax type Description :D1 :section sec 194C contractors Invoice posting :IN

Select gross amount radio button Select with holding tax commercial rounding radio button Select post with hold tax amount check box Select no accumulation radio button Save Press enter to save in your request Define withholding tax for payment posing Same path Give the country key Enter Select new entries button With holding tax type Description :DA :Sec 194 C contractors Advance posting

:IN

Select gross amount radio button Select withhold tax commercial rounding radio button Select no accumulation radio button Select post with holding tax amount check box

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Select central invoice propitiate radio button Select save button or Ctrl+S Press enter to save in your request

Why to select central invoice proportionate for advance payments 2.266% 1. Advance payment F-48 20.11.2008 Party special GL (A) Dr 100000 To Bank 97734 To TDS (To deposit before 07.12.2008) 2266

2. Purchase invoice posting F-43 14.12.2008 Conversion charges Dr 300000 To party 293202 To TDS (to Deposit before 07.12.2009) 6798 3. Transfer of advance from special GL to normal by clearing special GL -54 14.12.2008 Party Dr 97734 TDS Dr 2266 auto debit To Party special GL (A) 100000 TDS payable on 07.12.2008 on 07.12.2008 2266 TDS payable on 07.12.2009 4532 (6798-2266)

Define withholding tax codes Path :Up to extend with holding tax the pat is same Calculation With hold tax codes Define with holding tax codes Give the country key Enter Select new entries button With holding tax type With hold code Description :D1 :D1 :section 194C contractors Invoice (2.266%) :IN

253

Official with holding tax

:section 194 C :100

Base amount percentage subject to tax With holding tax rate Posing indicator :2.266%

:selection 1 (standard posting :Bank /Vendor /Customer line item reduced

Save Press enter to save in your request Select back arrow Select with holding tax type Select copy as button Change with holding tax type :D1 to DA Change with hold tax code Description Enter and Save Check recipient type Path :Up to extended with hold tax the path is same Basic settings Check recipient types Give the country key Enter Select new entries button With holding tax type Recipient type Text :D1 :CO :company :In for India :from D1 to DA :sec 194 C (contractors Advance 2.266% ) :D1

One more With holding tax type Recipient type Text Save Press enter to save in your request :DA :CO :Company

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Maintain tax due dates Path :Up to extend with holding tax the path is same Basic settings India Maintain tax due dates Select new entries button Country Official with holding tax key Recipient type No.of days unit tax due date Save

:IN :194C :CO :777

Assign withhold tax types to company code Path :Up to Extend with holding tax the path is same company code Assign with holding tax types to company code Select new entries button Company code Withholding tax type Recipient type :AML :D1 :CO

Select with hold tax agent check box Withholding tax obligated firm :01.04.2008 Obligated to with hold tax until Save Press enter to save in your request Select back arrow Select company code AML with tax type D1 Select copy as button Change the With holding tax type to DA Enter & Save Activate extended withholding tax : Same path Select position button Give the company code Enter :AML :31.03.2009

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For company code AML select extended with holding tax check box Save Ignore the warning message press enter Press enter to save in your request Combined with holding tax code Path : up to Extend with holding tax the path is same Calculation India surcharges Maintain surcharge rates (Surcharges combined with basic withholding tax codes) Select new entries button Company code Withholding tax code Recipient type Surcharge rate Company code Withholding tax code Recipient type Surcharge Save Press enter to save in your request Creation of 2 GL masters (FS00) 1. Conversion charges under manufacturing group 2. TDS on contractors under Current Liabilities & Provision group FS00 Give the GL A/c No. Company code :400200 :AML :AML :D1 :CO :10 :AML :DA :CO :10

Select with template button Give the GL A/c Company code Enter Change the A/c group to manufacturing expenses :400100 Salaries A/c :AML

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Change short text and GL A/c long text to Conversion changes Save

One more Give the GL Account no. Company code Select with template button Give the GL A/c No.100500 out standing exp. Company code Enter Change short text and GL account long text to TDS on Contractors Save Assignment of accounts for Automatic postings: Path :Up to Extended with holding tax the path is same Posting Accounts for withholding tax Define accounts for withholding tax to paid over Give the Chart of Accounts :AML Enter Select with holding tax code check box And with withholding tax type check box Save Withholding tax type Withholding tax code Account Withholding tax type Withholding tax code Account Save Press enter to save in your request :D1 :D1 :100510 :DA :DA :100510 :AML :100510 :AML

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Maintain company code settings Path :SPRO-Logistic- General Tax on goods movement India Basic settings Maintain company code settings Select new entries button Give the company code AML and Save Press enter to save in your request Specify document type for remittance challans Remittance challans TDS on contractors 1 2 3 4 5 CO OT CO CO TO 1000 (Company) 2000 (Individual) 3000 4000 5000

When we make TDS payment we have to prepare two challans 1 for Companies 2 for Individuals In remittance challan screen recipient type 1 3 4 Company (CO) CO CO CO 1000 3000 4000

TDS on contractors Dr-With Clg 8000 GL To Bank 8000 GL Doc .Type :SA Path :Up to Extended with holding tax the path is same Posting India Remittance challans Document types Specify document type (Accounts payable) Select new entries button Company code :AML :SA

Remittance challan document type Save Press enter to save in your request

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Maintain number groups: Same path Select new entries button Company code Section code Official withholding tax key Number group Save Press enter to save in your request Assign number ranges to Number groups: ( Tr code is J1INO) Same path Select new entries button Internal number range group :08 Internal challan :08 Save Maintain number ranges:(Tr code is J1INUMBER) Same path Select maintain groups button Select group without tax having 08 check box From the menu select Interval Maintain Give the company code Enter Select interval button Year From no. To number Enter & Save Ignore the message press enter :2008 :1 :100000 :AML :08 :AML :AMLF :194C

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Assign remittance challan number group to Business place Tr code is (SM30) Give the Table /View Select maintain button Select new entries button Company code Business place Official with holding Number group Save Assign remittance challan number group to section code :(SM30) Table /view :J_1IEWTNUMGR_1 Select maintain button Select new entries button Company code Selection code Official withholding Number group Save Press enter to save in your request Maintain number groups and SAP script forms Path :Up to Extend with holding tax the path is same Postings India Withholding tax certificates for Vendors and Customers Maintain number groups as SAP script forms Select new entries button Company code Section code Official withholding tax key Form :AML :AMLF :194C :J_11EWT_CERT :AML :AMLF :194C Tax key :08 :AML :AMLF :194C Tax key :08 :J_1IEWTNUMGR

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No group Save

:09

Press enter to save in your request Assign number ranges to number groups Same path Select new entries button Number group :09 Internal number range :09 Save Press enter to save in your request

Maintain number ranges Sam path Select maintain groups button Select group without text having 09 check box From the menu select interval maintain Company code Enter Select interval button Year From number To number Enter & Save Ignore the message press enter Assign withholding tax code in Vendor master Path :Accounting Financial accounting Accounts payable Master recordsMaintain centrally change (Tr code is XK02) Give the vendor no. Company code Select with hold tax check box :4200001 :AML :2008 :100001 :200000 :AML

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Enter Give the withhold tax country :IN (India) With holding tax type Withholding tax code Select liable check box Recipient type Withholding tax type Withholding tax code Select liable check box Recipient type Select CIN details button Ignore the warning message press enter Select withholding tax tab Give the PAN of vendor Select back arrow Save END USER AREA Conversion charges posting (F-43) Document type Type Company code Posting key Account no. Enter Give the amount Business area Business place /section code Enter Text Posting key :Conversion charges posting :40 :100000 :AMLH :select AMLF :Todays date :KR :AML :31 :4200001 :AP4C12345C :CO :CO :DA :DA :D1 :D1

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Account Enter

:400200 conversion charges account

Conversion charges

Option 1 If the bill value is less than 20000 and whole year contract value is less than 50000 No TDS

Remove D1 and DA

Option 2 If the value consists of material 30000 and conversion charges 70000 A) For D1 with holding tax base amount enter 70000 TDS will be deducted on 70000 B) Remove DA

Option 3 If the bill amount is only for conversion charges

A) Remove DA

Remove with hold tax code :DA Enter Amount :* Business area :AMLH Text :+ From the menu select Document Simulate and Save Note : If you get a error message once check it Activate extended withholding tax / Document splitting Create remittance challan Path :Accounting Financial accounting Accounts payable With holding tax India Extended with holding tax Remittance of withholding tax-Create remittance challan (Tr code is J1INCHLN) Company code Fiscal year Business plane/ Second code Posting date Section Recipient type Document date :AML :2008 :AMLF :01.01.2009 to 31.01.2009 :194 C :CO :07.02.2009

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Posting date Bank account Execute (F8) Enter Business area Text

:07.02.2009 :200105 SBI CA

:AMLH :Conversion charges amount

Double click on all open items (by default one rupee can not see in SAP zero) Select document overview button Double click on the line item SBI current A/c with one rupee Amount Save Select clearing document button Select back arrow Enter Bank challan Path: Same path ( Tr code is J1INBANK) Give the company code Fiscal year Challan clearing number :AML :2008 :select document no.37 :*

(Once we select challan clearing number, Internal challan number and internal challan date will be update automatically) Base challan no . Bank challan date Bank key Execute Print TDS Certificate Path :Up to extend with holding tax the path is same Certificates Print (J1INCERT) :789 :07.02.2009 :select SBI

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Company code Fiscal year Business area /Section code Section Posting dates Bank challan dates Certificate date Signatory Designation Place of printing Execute Select print button Output device Select print button To view the print out

;AML :2008 :AMLF :194C :01.04.2008 to 31.03.2009 :01.05.2008 to 30.04.2009 :30.04.2009 :Mr X :Manager :Hyderabad

:LP01

From the menu select System Services Output control Select execute button Select spool no.check box Select display contents button Quarterly return ( Tr code J1INQEFILE) Path for Entering acknowledgement numbers. In TDS certificate we have to specify acknowledgment number for each quarterly return field. Path :System Service Table maintenance Extended table maintenance (Tr code is SM30) Table /View J_1IET_ACKN_N Select maintain button Select new entries button

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Company code Year Section code Period ACK No. Save

:AML :2008 :AMLF :select second quarter :123

Note: Quarterly return not working in pirated softwares patches updated in genuine SAP software Advance posting: 1. Advance payment posting F-48 15.12.2008 50000 1133 TDS to deposit before 07.01.2009 2. Conversion charges posting F-43 02.01.2009 200000 4532 3. Transfer of advance from special GL to normal by clearing special GL F-54 02.01.2009 1133 Auto debit will come before 07.02.2009 to deposit 45321133=3399

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