FI

Combined-Process Harmonization
Results- Finance-
Page 1 of 115115 Process Harmonization Results - FI

Index
FINANCIAL ACCOUNTING.................................................................................................................................. 5
FINANCIAL ACCOUNTING MASTER DATA ................................................................................................................ 5
Chart Of Accounts and Master Data/Manual creation ....................................................................................... 5
Subledger Procedure-Accounts Receivable......................................................................................................... 6
Sub ledger Procedure Accounts Payable............................................................................................................ 8
Sub Ledger Procedure Bank Accounting........................................................................................................... 10
Foreign Currencies ........................................................................................................................................... 11
Banks-Bank Directory Manual .......................................................................................................................... 13
Account Groups ................................................................................................................................................. 14
FINANCIAL ACCOUNTING................................................................................................................................ 17
FINANCIAL ACCOUNTING MASTER DATA .............................................................................................................. 17
Screen Layout .................................................................................................................................................... 17
Field Status Group ............................................................................................................................................ 18
Fiscal Year ........................................................................................................................................................ 19
Fiscal Year - Posting Period Variant ............................................................................................................... 20
Tolerances ......................................................................................................................................................... 22
Credit Management ........................................................................................................................................... 23
Texts .................................................................................................................................................................. 24
Dunning Interest and Program.......................................................................................................................... 25
STANDARD POSTING TRANSACTIONS ..................................................................................................................... 26
Fiscal Year Proposal......................................................................................................................................... 26
Document and Line Item Display ...................................................................................................................... 27
Document Type.................................................................................................................................................. 28
Document Number Ranges ................................................................................................................................ 30
Recurring Entries .............................................................................................................................................. 31
Texts keys........................................................................................................................................................... 32
Vendor Bill Of Exchange................................................................................................................................... 33
Special General Ledger Transaction................................................................................................................. 34
Account Assignment Model ............................................................................................................................... 35
Customer Down Payments................................................................................................................................. 36
Vendor Down Payments .................................................................................................................................... 37
Customer Bill Of Exchange ............................................................................................................................... 38
Payment Grouping............................................................................................................................................. 41
Automatic Clearing ........................................................................................................................................... 42
Payment Grouping-Payment programme.......................................................................................................... 43
Asset Accounting Integration............................................................................................................................. 44
Materials Mgt. Purchase Integration ................................................................................................................ 45
Foreign Currency Valuation ............................................................................................................................. 46
Foreign Currency Valuation Level.................................................................................................................... 47
PAYMENTS ............................................................................................................................................................. 48
Reasons forPayment Block ................................................................................................................................ 48
Payment Terms .................................................................................................................................................. 49
Check Management ........................................................................................................................................... 52
Payment advice.................................................................................................................................................. 54
INTEREST CALCULATION ........................................................................................................................................ 55
Overdue Items.................................................................................................................................................... 55
Balance Interest Calculation ............................................................................................................................. 56
Special General Ledger Interest Calculation .................................................................................................... 57
Interest Posting.................................................................................................................................................. 58
Planning ............................................................................................................................................................ 59

Plan Data Integration with Controlling ............................................................................................................ 60
Correspondence/Financial calendar ................................................................................................................. 61
FINANCIAL ACCOUNTING................................................................................................................................ 62
REPORTS/FINANCIAL ACCOUNTING ....................................................................................................................... 62
Standard Report List, Additional ABAP/4 ......................................................................................................... 62
Ratios................................................................................................................................................................. 63
Migration Financial Accounting ....................................................................................................................... 64
Tax calculation-sales tax other countries.......................................................................................................... 65
Stamp Tax .......................................................................................................................................................... 66
TAX VALUATION AND A/C DETERMINATION............................................................................................ 67
TAX ........................................................................................................................................................................ 67
Withholding Tax ................................................................................................................................................ 67
Taxing-specific VAD Tax rules.......................................................................................................................... 68
REVALUATION........................................................................................................................................................ 69
Price Control..................................................................................................................................................... 69
ACCOUNT DETERMINATION FI/MM....................................................................................................................... 71
Account Determination, Transaction Keys for posting transactions. ................................................................ 71
ACCOUNT DETERMINATION FI/MM....................................................................................................................... 73
Account Determination, Transaction Keys for posting transactions. ................................................................ 73
ACCOUNT DETERMINATION FI/SD......................................................................................................................... 75
Revenue Accounting, Customer Account Group, Materials Account Group..................................................... 75
LOWEST VALUE VALUATION ................................................................................................................................. 78
Valuation Procedure for Balance Sheet Valuation............................................................................................ 78
BANK ACCOUNTING/CASH MANAGEMENT................................................................................................ 82
CASH MANAGEMENT ............................................................................................................................................. 82
Cash Management ............................................................................................................................................. 82
Cash Forecast.................................................................................................................................................... 83
Origin-payment.................................................................................................................................................. 84
Manual Planning ............................................................................................................................................... 85
Account Clearing............................................................................................................................................... 86
Cash Journal ..................................................................................................................................................... 87
Electronic Account Statement............................................................................................................................ 89
Degree Of freedom in cash Forecast................................................................................................................. 91
Complex cash Management............................................................................................................................... 92
Origin ................................................................................................................................................................ 93
Planning Group ................................................................................................................................................. 94
Cheque Deposit ................................................................................................................................................. 95
Electronic Account Statement/Manual .............................................................................................................. 96
ASSET ACCOUNTING .............................................................................................................................................. 98
Limited Base Value............................................................................................................................................ 98
Asset Class....................................................................................................................................................... 100
Default Settings for Asset Class....................................................................................................................... 102
Outline Categories-Asset Number, Sub Number ............................................................................................. 104
Validation Rules .............................................................................................................................................. 105
Default Values ................................................................................................................................................. 106
Long Text Template ......................................................................................................................................... 107
Evaluation Groups........................................................................................................................................... 109
Property Indicator ........................................................................................................................................... 110
ENVIRONMENT AND VALUATION ......................................................................................................................... 111
Unplanned Depreciation. ................................................................................................................................ 111
Insurance Types............................................................................................................................................... 112

FINANCIAL ACCOUNTING-AA....................................................................................................................... 113
REPORTS/LISTING IN ASSET ACCOUNTING ........................................................................................................... 113
Standard Report List, Additional ABAP/4 ....................................................................................................... 113
Asset Accounting data migration..................................................................................................................... 114
Business Area Assignment Revenues/Expenses. .............................................................................................. 115

Main Process Financial Accounting
Level 1 Sub Process Financial Accounting Master Data
Level 2 Sub Process Chart Of Accounts and Master
Data/Manual creation
Process required for:
India:
Japan:
Scala Countries:
Description:
The Chart Of Accounts is a listing of the Account Codes as required by one or more company codes. For
each G/L account, the chart of accounts contains the account number, account name, and the
information that controls how account functions and how a G/L account is created in a company code.
Chart Of Accounts is a 4 digit code and has a description.
You need to assign Chart of Accounts to a company code.
Menu Path:
FinancialAccountingÆGeneralLedgerAccountingÆG/LAccountsÆMasterRecordsÆPreparationsÆChart
Of Accounts.
Results:
Chart Of Accounts:
It was decided to name the Damstardt chart of accounts as YCCA.
The length of the g/l account would be 6 digits.
The general ledger accounts within Chart of Accounts (COA) will be created in 2-step procedure:
The Chart of accounts view shall be created first for all G/L Accounts in the MDA Chart of Accounts.
The company code view shall be created for only the relevant accounts for the respective companies.
This would help in not extending certain accounts to certain CMGs for which the account codes are not
relevant. Also it will prevent an erroneous posting into an account that need not be used for a particular
company code.
See annexure:1 Excel sheet for the master data.
The master data needs to be prepared by users of the respective countries and submitted for uploading
into the R/3 system.
Date of Discussion: 14.05.2001
Participants:
Japan: Mr. Harito, Mr. Mito.

E- India: Ms. Aruna, Mr. Magar, Mr. Ashwin
Darmstadt: Mrs. Bettina.
Singapore: Mr. Milind Nerurgaonkar
SISL: Mr. Abhyuday Rao, Ms. Sharmila

Level 2 Sub Process Subledger Procedure-Accounts Receivable
India:
Japan:
Scala Countries:
Description:
The master record contains data that controls how business transactions are recorded and processed by
the system. It also includes all the information about a customer that you need to be able to conduct
business.
Customer Master Record is divided in three parts:
General Data
Accounts Data
Sales Area Data.
General Data is common across company codes.
Menu Path:
Financial AccountingÆAccounts ReceivableÆ Master records ÆMaintain centrallyÆ Create.
Results:
The accounting view of the customer master data requires a required field, which is the reconciliation
account number.
The following customer reconciliation account will be used in the template, which are as per the
Darmstadt Chart of Accounts:
Trades Receivable 3rd Parties
Trades Receivables Group
However the reporting requirements in India require classification of receivables as follows:
Pharma:
Local
Exports
Chemical:
Local
Exports
Diagnostics
ISD
The above needs to be available location wise. This would be available through reports from sales and
Distribution module
See annexure: 2 Excel sheet for the master data.

Participants:
Japan:
E- India:
Singapore:

Level 2 Sub Process Sub ledger Procedure Accounts Payable
India:
Japan:
Scala Countries:
Description:
The master record contains data that controls how business transactions are recorded and processed by
the system. It also includes all the information about a vendor that you need to be able to conduct
business.
Vendor Master Record is divided in three parts:
General data:
This is data that applies to every company code and every purchasing organization in your company.
General Data is common across company codes.
Company code data:
This is data that is specific to an individual company code. Company code data includes, for example,
the reconciliation account number and payment terms.
Purchasing organization data:
This is data relevant to the purchasing organization of your company. For example, requests for
quotations, purchase orders, and invoice verifications are stored in this section. You need the Materials
Management (MM) application component in order to enter this data
Menu Path:
AccountingÆFinancial AccountingÆAccounts PayableÆMaster RecordsÆCentrallyÆCreate.
Results:
The master data needs to be prepared by users of the respective countries and submitted for uploading
into the R/3 system. Only the account data needs to be prepared by the FI-Users.
See annexure: 3 Excel sheet for master data.
The communications data was discussed with users of Japan. It was decided that Name and Address
would be maintained in both the languages- English and Japanese for local vendors of Japan.
For import vendors, it is sufficient to maintain the name and address data in English. To meet this
requirement, it has been decided that in case of local vendors, the address data in the Basic Data view
will be maintained in Japanese language. The name and address in English will be captured in text
maintained for correspondence.
The vendor reconciliation accounts as applicable to the template are:
• Accounts Payable – Trade, Third Parties
• Accounts Payable – Trade, Group Companies
• Accounts Payable – Trade, Associate Companies (This is applicable for Japan)

However, information relating to outstanding is required for the following categories of vendors:
• Local Suppliers – Materials
• Local Suppliers – Others
• Import Vendors – Materials
• Import Vendors – Duties
• Freight Vendors
• One Time Vendors
• Employee Vendors
• FI-Vendors
The above would be provided through reporting.
Participants:
Japan:
E- India:
Singapore:

Level 2 Sub Process Sub Ledger Procedure Bank Accounting
India:
Japan:
Scala Countries:
Description:
Each house bank of a company code is represented by a bank ID in the SAP system, every account at a
house bank has a G/L account code.
In the SAP system, you use the bank ID and the account ID to specify bank details. These specifications
are used, for example, for automatic payment transactions.
A house bank is in each company code and created for a country.
Menu Path:
Financial AccountingÆBank AccountingÆBank AccountsÆDefine House Banks.
Results:
For domestic banks, the bank number should be entered in the "bank key" field and for foreign banks,
enter the SWIFT code in this field.
House banks are needed for automatic payment transactions, bank reconciliation.
The length of the g/l account would be 6 digits.
The bank general ledger account will be coded as follows:
First two digits will define that it is a bank account.
Next three digits will define the various bank accounts within a bank possibly differentiated by currency.
The last one digit deciding the transaction i.e.
• Transaction for main bank account.
• Transaction for incoming checks.
• Transaction for outgoing checks.
• Transaction for transfers etc.
The above would be necessary for Bank Reconciliation.
Please also refer Annexure: 5 for Bank Master Template.
Date Of Discussion: 23.05.2001
Participants:
Japan: Mr. Harito

India: Ms. Aruna, Mr. Magar
Darmstadt:
Singapore:

Level 2 Sub Process Foreign Currencies
India:
Japan:
Scala Countries:
Description:
Exchange Rate Types
Exchange rates for different purposes for the same date are defined in the system with help of exchange
rate types.
E.g.
M Standard translation at average rate.
G Standard translation at bank buying rate.
B Standard conversion at bank selling rate.
Exchange Rate
Exchange rates are required to be able to:
• Translate foreign currency amounts when posting or clearing or to check an exchange rate
entered manually.
• Determine the gain and loss from exchange rate differences.
• Evaluate open items in foreign currency and the foreign currency balance sheet accounts.
E.g.
Standard translation rates for most of the currencies to USD is maintained
M 30.04.1998 100 JPY = 0.78454 USD
Menu Path:
IMGÆGeneral SettingsÆCurrenciesÆCheck Exchange Rate Types.
Results:
Only the following exchange rate types will be used:
• Average Rate
• Bank Buying Rate
• Bank Selling Rate
The conversions for the following currencies need to be maintained for EMIL:
• USD
• EURO
• DEM
• JPY
• GBP
• CHF
• FRF
• SGD

• AUD
Apart from the above, the conversion factors need to be maintained for the following currencies for Japan:
• INR
• HKD
• Korean WON
Participants:
Japan:
India:
Singapore:

Level 2 Sub Process Banks-Bank Directory Manual
India:
Japan:
Scala Countries:
Description:
The bank directory contains the bank master data. This includes the bank address data and control data,
such as the SWIFT code and Bank Groups. The post office bank details should be specially identified.
There are two ways to create the bank directory:
• Automatically
Using program RFBVALL_0, you can import a bank directory from an ASCII file into the SAP
system. You usually get a national bank directory on a data medium at a banking organization in
your country.
• Manually.
Menu Path:
IMGÆAccountingÆFinancial AccountingÆBanksÆMaster DataÆBank Master RecordÆTransfer Bank
Data.
Results:
The bank master shall be created manually.
Participants:
Japan: Mr. Harito

Darmstadt:
Singapore:

Level 1 Sub Process FI Accounting Master Data
Level 2 Sub Process Account Groups
India:
Japan:
Scala Countries:
Description:
The account group determines:
• the interval in which the account number must be.
• which fields are required and optional entries when creating and changing master records.
• which fields are suppressed when creating and changing master data.
Menu Path:
General Ledger:
IMGÆFinancial AccountingÆG/LÆMaster RecordsÆPreparationÆDefine Account Group.
Accounts Receivable:
IMGÆFinancialAccountingÆFinancialAccountingGlobalSettingsÆAccountsReceivable/PayableÆCusto
merAccountsÆMaster RecordsÆDefine Account Groups.
Accounts Payable:
IMGÆFinancial Accounting ÆGlobal SettingsÆAccounts Receivable/PayableÆVendor
AccountsÆMaster RecordsÆDefine Account Groups.
Results:
General Ledger:
All the companies within the scope of the EMERALD project shall follow the MDA Chart Of Accounts.
Chart Of Accounts being common, it was felt by the team that the account groups as followed by
Darmstadt can be followed for the other countries also. The Account Groups are to be received from
MDA.
Accounts Payable:
Account Groups are defined independent of the company code. If vendor masters in both India and
Japan are created with the same account group (to which a number range is attached) they will follow
one number range. Hence it was decided to create the account groups separately for each country.
Vendor Account Groups:
The vendor reconciliation accounts as applicable to the template are:
• Accounts Payable – Trade, Third Parties
• Accounts Payable – Trade, Group Companies
• Accounts Payable – Trade, Associate Companies (This is applicable for Japan)

However, information relating to outstandings are required for the following catgories of vendors:
• Local Suppliers – Materials
• Local Suppliers – Others
• Import Vendors – Materials
• Import Vendors – Duties
• Freight Vendors
• One Time Vendors
• Employee Vendors
• FI-Vendors
It was decided that this information will be provided by creating account groups for the above mentioned
categories.
Coding logic for the account group:

The account group code in SAP can accommodate maximum four characters. It was decided that the
logic existing for the codification of company code can be followed for defining account groups also.
This means that the first two characters of the account shall represent the country codes alloted for the
Asia-Oceania region. This number shall be between 60 and 79. The third character shall be an alpha
character representing the number of the company code within a country, for e.g A could mean CMG 1
and B could mean CMG2 within the same country. In cases where there is only one company code in a
country, only A will be used as the third character. The last character shall be a running number
identifying the category of the vendors. This would have the values as:
Category of Vendor Running Number

Local Suppliers – Materials 1
Local Suppliers – Others 2
Import Vendors – Materials 3
Import Vendors – Duties 4
Freight Vendors 5
One Time Vendors 6
Employee Vendor 7
Thus account group

“62A1” could mean local suppliers of materials in company code EMIL, (country India for EMIL assumed
as “62”,
“69A1” could mean local suppliers of materials in company code Singapore, (country Singapore for
Singapore assumed as “69”, and
“69B1” could mean local suppliers of materials in company code Santoku Ltd., (country Singapore for
Santoku Ltd. assumed as “69”.
Thus by the alphabet we distinguish between 2 companies within the same country.
Regarding number ranges, it was decided that there shall be a unique number interval for vendors for
every CMG.
Accounts Receivable:
Customer Account Groups:
Account Groups are defined independent of the company code. If customer masters in both India and
Japan are created with the same account group (to which a number range is attached) they will follow
one number range. Hence it was decided to create the account groups separately for each country.
Following account groups will be required for customer:

Ship-to-party )
Sold-to-party ) country specific number ranges for customers
Payer )
Bill-to-party )
Customers-FI
One Time customers
General-External number range.
Excel template for the number ranges is given.
Participants:
Japan:
India:
Singapore:

Level 2 Sub Process Screen Layout
India:
Japan:
Scala Countries:
Description:
In this step you determine, depending on the company code, which company coddependent master
record fields or document level fields:
• are ready for input
• require an entry
• Are hidden.
Menu Path:
General Ledger Master:
IMGÆFinancialAccountingÆGeneralLedgerAccountingÆG/LAccountsÆMasterRecord
ÆPreparationÆAdditional ActivitiesÆDefine Screen Layout.
Receivable/Payable Master:
IMGÆFinancial AccountingÆAccounts Receivable/PayableÆMaster RecordsÆPreparationsÆDefine
Screen Layout
Results:
The screen layout depends on the field status group (document posting) or account groups (master
creation). The field status group chosen is copied from the SAP standard for regional template and the
account group has been configured as discussed.
Date of Discussion: 14.05.2001 and 25.06.2001
Participants:
Japan: Mr. Harito

Darmstadt:
Singapore:

Level 2 Sub Process Field Status Group
India:
Japan:
Scala Countries:
Description:
Field status group controls the status of field during document entry. Field status is attached to the g/l
account. It controls whether field is to have either of the following characteristics:
Suppress
Required
Optional.
In other words, the field status group determines which fields are ready for input, which are required
entry fields, and which are hidden during document entry.
Menu Path:
IMGÆFinancial AccountingÆGlobal SettingsÆDocumentÆLine ItemÆControlsÆMaintain Field Status
Variant.
Results:
Standard field status group was shown and will be used in the template. The standard field status variant
shall be adopted initially. The EMIL , Japan, Singapore team shall revert back about the different field
status groups that are required before the second session of the workshop.
Standard field status variant:
0001 Field status for 0001
Field status group for a field status variant 0001:

G001 General (with text, allocation)
G003 Material consumption accounts
G004 Cost accounts
G005 Bank accounts (obligatory value date)
G006 Material accounts
G007 Asset accts (w/o accumulated depreciation)
Participants:
Japan:
India:
Singapore:

Level 2 Sub Process Fiscal Year
India:
Japan:
Scala Countries:
Description:
A fiscal year consists of several posting periods and if necessary, special periods that can be posted to
after a temporary year-end closing.
One can define the following characteristics for a fiscal year variant:
• how many posting periods a fiscal year has.

• how many special periods you need.
• how the system is to determine the posting periods when posting.
Menu Path:
IMGÆFinancial AccountingÆFinancial Accounting Global SettingsÆFiscal YearÆMaintain Fiscal Year
Variant.
Results:
The fiscal Year to be used by the respective countries are as follows:
EMIL: Calendar year with 4 special posting periods.
Japan: Calendar year with 4 special posting periods.
Scala Countries: Calendar year with 4 special posting periods.
K4- Standard fiscal year variant in R/3.
Note: India also has April to March period for tax reporting.
Participants:
Japan:
India:
Singapore:

Level 2 Sub Process Fiscal Year - Posting Period Variant
Process Required for:

India:
Japan:
Scala Countries:
Description:
Signifies which periods can be kept open or closed for posting in FI. Thus when a document is to be
posted the system checks whether the period specified in the document is open for posting. You can
have as many periods simultaneously open for posting as you like.
Variant Acct From To From Year To Year From To

Type Account Account Period Period Period Period Year
0001 + 3 2000 12 2002 13 2000 16 2000
0001 A ---- ZZZZZZZZZZ 3 2000 12 2002 13 2000 16 2000
0001 D ---- ZZZZZZZZZZ 3 2000 12 2002 13 2000 16 2000
0001 K ---- ZZZZZZZZZZ 3 2000 12 2002 13 2000 16 2000
0001 S ---- ZZZZZZZZZZ 2 2000 12 2002 13 2000 16 2000
You define which periods are open by specifying two intervals, both of which have an upper and a lower
limit. Each of the interval having a posting period and a fiscal year.
Specific period can also be kept open for certain accounts.
Menu Path:
IMGÆFinancialAccountingÆFinancialAccounting Global SettingsÆDocumentÆPosting PeriodsÆDefine
variants for open posting periods.
Results:
The requirements of posting transactions in different CMGs being different, posting period variant will be
defined for each company code.
The posting period variant will have code same as that of the company code.
The posting period variant will have account type wise entry in addition to the general entry represented
by a + sign.
Representatives from all the companies felt that they have a requirement of posting into the future periods but
once a period is closed and MIS generated, no adjustments shall be made for the same. Hence, the posting
period variant in the template shall be defined with all 12 periods of the year open. As and when the MIS of a
particular month is finalized, the month shall be closed for posting.

Participants:
Japan:
India:

Level 2 Sub Process Tolerances
India:
Japan:
Scala Countries:
Description:
The tolerances are used for dealing with differences in payment and residual items, which can occur
during payment settlement. The tolerances are specified under one or more tolerance groups. Allocate a
tolerance group to each customer/vendor via the master record. For each tolerance group, following is
specified:
Tolerances up to which differences in payment are posted automatically to expense or revenue accounts
when clearing open items.
The handling of the terms of payment for residual items, if they are to be posted during clearing.
If the payment difference is immaterial, you can have the system automatically adjust the cash discount
or post the difference to a separate gain or loss account. You have to specify the maximum amount of
any differences that can be posted in this way by setting amount tolerances and percentage limits.
Menu Path:
IMGÆFinancialAcountingÆAccountsReceivable/PayableÆBusinessTranscationsÆIncomingPayments
ÆManual Incoming PaymentsÆDefine Tolerances
Results:
For the regional template the tolerance group for customer/vendor for payment difference will be:
UNI 10 or 1% –Gain or Loss whichever is lower.
Tolerance for employees has been set same as above for the regional template.
For document posting the tolerance for employees is set with the maximum limit and cash discount
percentage equaling 5%.
Date of Discussion: 04.07.2001 and 15.05.2001
Participants:
Japan: Mr. Harito

Darmstadt:
Singapore:

Level 2 Sub Process Credit Management
India:
Japan:
Scala Countries:
Description:
Refer profile in Sales and Distribution Module.
Menu Path:
Results:
Refer profile in Sales and Distribution Module.
Participants:
Japan:
India:
Darmstadt:
Singapore:

Level 1 Sub Process Financial Accounting Master data
Level 2 Sub Process Texts
India:
Japan:
Scala Countries:
Description:
In this step, text IDs for the company coddependent area of a customer master record can be defined.
For every text ID, a text can be entered when maintaining the master records. This means that you can
store information on the customer in the master record.
Menu Path:
IMG Æ Financial Accounting Æ Accounts Receivable and Accounts Payable Æ Customer Accounts Æ
Master Records Æ Preparations for Creating Customer Master Records Æ Define Text IDs for
Accounting Texts (Customers)
Results:
This could be used for storing any additional data for customers. This will be considered during the roll
out.
Date of Discussion: As per phase 1.
Participants:
Japan: Mr. Harito

India: Ms. Aruna, Mr. Magar,
Darmstadt:
Singapore:

Level 2 Sub Process Dunning Interest and Program
India:
Japan:
Scala Countries:
Description:
Sometimes the customers may fall behind on payments. For this a payment reminder or a dunning
notice can be sent to remind them of their outstanding debts. The system duns the open items from
customer accounts.
The dunning program selects the overdue open items, determines the dunning level of the account in
question, and creates a dunning notice.
Menu Path:
IMGÆFinancial AccountingÆAccounts ReceivableÆBusiness TransactionsÆDunning.
Results:
Dunning as a process is required only for India. This will be configured during the roll out stage.
Participants:
Japan: Mr. Harito.

India: , Mr Krishnan.
Singapore:

Level 1 Sub Process Standard Posting Transactions
Level 2 Sub Process Fiscal Year Proposal
Process Required for:

India:
Japan:
Scala Countries:
Description:
Same number range can be defined for several fiscal years. After changing fiscal years, the system
starts assigning numbers again from the lower limit of the interval. The same document numbers are
assigned in each fiscal year, but are uniquely identified by the year specification.
If you do not want to have numbers assigned based on each year, a year which lies far into the future,
must be specified for example "9999".
Menu Path:
IMGÆFinancial AccountingÆFinancial Accounting Global SettingsÆDocumentÆDocument Number
Ranges.
Results:
The document number range will be fiscal year dependent. Please see profile for document number
ranges on page:29
Participants:
Japan:
India:
Singapore:

Level 2 Sub Process Document and Line Item Display
India:
Japan:
Scala Countries:
Description:
The individual line items from the document can be displayed depending on the various variants defined
for line item display. The variants contain the combination of fields, which are to be displayed when the
line items for a particular account are to be displayed.
Menu Path:
IMGÆFinancial AccountingÆG/L AccountingÆG/L AccountsÆLine ItemsÆLine Item DisplayÆChoose
standard line layout.
Results:
At present only the line layout as per standard SAP will be used.
Participants:
Japan: Mr. Harito

Darmstadt:
Singapore:
Mr. Abhyuday Rao.

Level 2 Sub Process Document Type
India:
Japan:
Scala Countries:
Description:
Document types differentiate business transactions and control document filing.
Under the document type properties, an individual reverse document type can be assigned to each
document type.
Number range number is assigned to each document type.
Also the account types to which the document can be posted to can be controlled through the document
type.
Following are the standard document types as defined in the SAP:
• Accounting Document
• Customer Payment
• Customer Credit Memo
• Vendor Credit Memo
• Vendor Payment
• G/L Account Document
• InvoicBilling
• Vendor Invoice
Menu path:
IMGÆFinancial AccountingÆGlobal SettingsÆDocumentÆDocument HeaderÆOverview.
Results:
The requirements of all the countries with respect to the document types and their number ranges were
discussed. It was decided that the standard document types shall be adopted. In addition to the standard
document types, new document types shall be created for Cash Receipts and Cash Payments and document
reversals. All reversals shall be posted using one document type.
The following document types shall be created for the template:
Description Doc Type

Cash Document CJ
Bank Payment KZ
Bank Receipt DZ
Vendor Invoice (For bills with referenc RE
Purchase Orders in
the System)
Vendor Invoice (For bills without refer KR
to Purchase Orders in
The System )

Sales Invoices (From SD) RV
Sales Invoices (In FI) DR
Credit Notes- Purchase KG
Credit Notes- DG
Sales
Assets AA
Depreciation AF
Price Difference PR
Reversal RX
Bank Reconciliation ZR
Export Sales RV
Journal Vouchers SA
Participants:
Japan: Mr. Harito

India: Ms. Aruna, Mr. Magar, Ashwin
Singapore:

Level 2 Sub Process Document Number Ranges
India:
Japan:
Scala Countries:
Description:
Number ranges for documents are company coddependent. One must therefore create number ranges
for each company code in which the document type is used. The number intervals must not overlap. If
year-dependent number ranges are used, the same interval can be specified with the same key several
times for different "to- fiscal years" (the limit up to which a number range is still valid). If number ranges
which are independent of the to-fiscal year are to be defined, enter 9999 in the to- fiscal year field.
Menu Path:
IMGÆFinancial AccountingÆFinancial Accounting Global SettingÆDocumentÆDocument Number
Ranges.
Results:
The document number range would be internal for all the above document types and fiscal year
dependent. The actual number ranges required would be given by each country.
You can have upto a maximum of 10 numbers.
Members Present:
Japan: Mr. Harito, Mr. Mito

India: , Mr. Krishnan
Singapore:
Mr. Abhyuday Rao, Ms Sharmila.

Level 1 Sub Process Standard Posting Transaction
Level 2 Sub Process Recurring Entries
India:
Japan:
Scala Countries:
Description:
The recurring entry method is a document entry tool. If you frequently post the same documents with the
same data, time can be saved and errors avoided by using this method for document entry.
Periodically recurring entries are posted by the recurring entries program based on recurring entry
documents.
Menu Path:
IMGÆFinancial AccountingsÆ Financial Accountings Global SettingsÆDocumentÆRecurring Entry.
Results:
Japan:
The recurring entry data is to be used for monthly provisions. The data for which document will be
created will be provided.
India:
The recurring entry data will be used for rent payments.
Participants:
Japan: Mr. Harito

India: Ms. Aruna, Mr. Magar,
Darmstadt:
Singapore:

Level 1 Sub Process Standard Posting Transaction.
Level 2 Sub Process Texts keys
India:
Japan:
Scala Countries:
Description:
The text, which is to be entered in the document, can be pre configured.
In this activity, you can store texts under keys, which can be transferred to the line item. When entering a
document, the key is entered in the text field.
Menu Path:
IMGÆFinancial AccountingÆFinancial Accounting Global SettingsÆDocumentÆLine ItemsÆTexts.
Results:
The default text values are to be received from the respective countries
Participants:
Japan:
India:
Darmstadt:
Singapore:
Mr. Abhyuday Rao.

Level 2 Sub Process Vendor Bill Of Exchange
India:
Japan:
Scala Countries:
Description:
Bills of exchange are handled as special G/L transactions in the SAP R/3 System. These transactions
are thus maintained independently of other transactions in the subsidiary ledger and are posted to a
special G/L account in the general ledger. This affords you an overview of bills of exchange payable at
any stage.
Menu Path:
IMGÆFinancialAccountingÆBankAccountingÆBusiness TransactionÆBill Of Exchange
TransactionÆBill Of Exchange PayableÆDefine alternative Reconciliation Account for Bill Of Exchange.
Results:
Special g/l transaction “W” will be configured for this type. The information regarding the drawer and the
drawee, due date can be captured in the document itself. On posting the bill of exchange payable the
original open item to vendor gets cleared.
The volume of such transactions (in Japan) for the year is minimal (approx. 40 transactions).
In case of India such transactions are applicable in respect of few parties and the volume is around 7200
Transactions p.a..
The payee who will be primarily the bank should be known after Bills payable is accepted by us.
The entries passed are as follows:
On Invoice:
GR/IR a/c Debit
Vendor a/c Credit.
Bills Payable Accepted:

Vendor a/c Debit
Bills Payable a/c Credit
On Payment:
Bills Payable a/c Debit
Bank a/c Credit
Participants:
Japan: Mr. Harito
India:
Darmstadt:
Singapore:
Mr. Abhyuday Rao.

Level 2 Sub Process Special General Ledger Transaction
Customer

India:
Japan:
Scala Countries:
Description:
Special G/L transactions are special transactions in accounts receivable that are displayed separately in
the general ledger and the sub-ledger. This is achieved by posting to alternative reconciliation accounts,
instead of posting to the reconciliation accounts for receivables and payables. One character code is
defined for every special g/l transaction.
Menu Path:
IMGÆFinancial AccountingÆAccounts ReceivableÆBusiness TransactionsÆPosting with alternative
reconciliation accountÆOther special G/L transactionÆDefine Reconciliation accounts for Down
Payment.
Results:
In the standard SAP system following special G/L transactions exist:
Acct type Sp.G/L Sp.G/L ind Description

D G Guarantee
D H Security deposit
D P Payment request
D Z Interest receivable
D E Reserve for Bad Debt
Posting to special general ledger transaction requires customer master records to prexist.
Following special g/l transaction are required in the respective countries:
India Japan
Reserve for Bad Debt Reserve for Bad Debt
Security Deposit Promisory Note
Bank Guarantee
Participants:
Japan:
India:
Singapore:

Level 2 Sub Process Account Assignment Model
India:
Japan:
Scala Countries:
Description:
An account assignment model is a pattern for document entry. It can contain any number of G/L items
that may be left incomplete.
During the document entry the proposed data could be added or deleted at will.
Also equivalence numbers could be assigned to account assignment model.
Menu Path:
None.
Results:
The general ledger account entries for which account assignment model will be used is to be known
from the respective users.
Participants:
Japan: Mr. Harito

Darmstadt:
Singapore:
Mr. Abhyuday Rao.

Level 2 Sub Process Customer Down Payments
India:
Japan:
Scala Countries:
Description:
Special G/L transactions like customer down payments are special transactions in accounts receivable
that are displayed separately in the general ledger and the sub-ledger. This is achieved by posting to
alternative reconciliation accounts, instead of posting to the reconciliation accounts for receivables and
payables. In most of the countries the legal requirements require advances from customers to be shown
on the liabilities side of the balance sheet instead of clubbing them along with the customer reconciliation
account (shown on the assets side). This requirement can be met through special G/L transactions.
One character code is defined for every special g/l transaction.
Menu Path:
IMGÆAccounts ReceivableÆBusiness TransactionsÆDown Payment ReceivedÆDefine Reconciliation
accounts for Down Payment.
Results:
The requirement for down payments accounting is only for advances received from customer.
Down payment requests are not required.
Customer Down Payments:

India Japan
Advance from customer Advance from customer
Participants:
Japan:
India:
Singapore:

Level 2 Sub Process Vendor Down Payments
India:
Japan:
Scala Countries:
Description:
Special G/L transactions like customer down payments are special transactions in accounts receivable
that are displayed separately in the general ledger and the sub-ledger. This is achieved by posting to
alternative reconciliation accounts, instead of posting to the reconciliation accounts for receivables and
payables. In most of the countries the legal requirements require advances to vendors to be shown on
the assets side of the balance sheet instead of clubbing them along with the vendor reconciliation
account (shown on the liabilities side). This requirement can be met through special G/L transactions.
One character code is defined for every special g/l transaction .
E.g.
Acct type Sp.G/L Sp.G/L ind Description

K A Down payment on current assets
K B Financial assets down payment
K F Down payment request
Menu Path:
IMGÆAccounts PayableÆBusiness TransactionsÆDown Payment MadeÆDefine Reconciliation
accounts for Down Payment.
Results:
Vendor Down Payments:
India Japan
Capital Goods/CWIP Capital Goods/CWIP
Stocks(Raw Mat, Packing Mat) Stocks
Miscellaneous Adv. Miscellaneous Adv.
Participants:
Japan:
India:

Level 2 Sub Process Customer Bill Of Exchange
India:
Japan:
Scala Countries:
Description:
Bills of exchange are handled as special G/L transactions in the SAP System. These transactions are
thus maintained independently of other transactions in the subsidiary ledger and are posted to a special
G/L account in the general ledger. This affords you an overview of bills of exchange receivable and bills
of exchange payable at any stage.
When posting a bill of exchange receivable, you normally clear open items or post the payment as a
payment on account. The system posts a bill of exchange receivable to the customer account and
reduces the receivables from goods and services on the reconciliation account. The bill of exchange
receivable is also automatically posted to the special G/L account for bills of exchange receivable in the
general ledger. If you wish to pass on bills of exchange to a bank, the presentation list required can be
created automatically. If you like, you can also arrange for bill of exchange usage to be posted
automatically or for posting to be prepared.
Menu Path:
IMGÆFinancialAccountingÆBankAccountingÆBusinessTransactionsÆBillOfExchange
TransactionsÆBill Of Exchange Receivable.
Results:
Japan:
The requirement in case of bill of Exchange is for Collection and also for Discounting.
The status for Bill of Exchange is also to be known at any time i.e. On hand or Discounted or sent for
collection.
If sent on collection the customer special g/l account is credited. If discounted the notes discounted
liability account will be credited.
In general the method of accounting as in SAP R/3 will be followed.
India:
None.
Participants:
Japan: Mr. Harito
Darmstadt:
Singapore:
Mr. Abhyuday Rao

Level 2 Sub Process Other Special G/L Transaction-
Vendor
India:
Japan:
Scala Countries:
Description:
Special G/L transactions are special transactions in accounts receivable that are displayed separately in
the general ledger and the sub-ledger. This is achieved by posting to alternative reconciliation accounts,
instead of posting to the original reconciliation accounts for receivables and payables. One character
code is defined for every special g/l transaction.
Menu Path:
IMGÆAccounts PayableÆBusiness TransactionsÆPosting with alternative reconciliation
accountÆOther special G/L transactionÆDefine Reconciliation accounts for Down Payment.
Results:
In the standard SAP system following special G/L transactions exist:
A/C type Sp.G/L Description

K G Guarantee received
K H Security deposit
K P Payment request
Vendor: The requirements of following special g/l transactions exist for the respective countries:
India Japan
Employee: Employee:
Travel Travel
Salary
Loans to parties(LLM) Notes payable
Deposits to parties Rent Deposit for office staff

Loans to employees Loans to Employees
Conveyance
Vehicle

Participants:
Japan:
India:
Singapore:

Level 2 Sub Process Payment Grouping
India:
Japan:
Scala Countries:
Description:
Wherever possible, the payment program will always group items together for payment. However, you
can also specify that an individual payment (a separate payment) is made for a particular item.
The payment program can only group together open items for payment if the open items in an account
have the same:
• Currency.
• Payment method in the item.
• Bank in the item.
• Contents of the grouping fields (if a grouping key is specified in the customer or vendor master
record).
Menu Path:
IMGÆFinancial AccountingÆAccounts Receivable/PayableÆBusiness TransactionsÆOutgoing
PaymentsÆAutomatic Outgoing PaymentsÆPayment MethodÆPayment Groupings.
Results:
The payments are centralized. The grouping is required only as per due date. Hence the open items
from invoices falling due for a vendor as of a particular date will be grouped together for payment.
Date Of Discussion: 04.07.2001.
Participants:
Japan: Mr. Harito

Darmstadt:
Singapore:

Level 2 Sub Process Automatic Clearing
India:
Japan:
Scala Countries:
Description:
You can use the clearing program to clear open items from customer, vendor, and G/L accounts. This
program uses predefined criteria to group together open items per account. If the balance of the group of
open items equals zero in local, foreign, and where applicable, the parallel currency, the items are
marked as cleared.
Menu Path:
IMGÆFinancial AccountingÆAccounts Receivable/PayableÆBusiness TransactionsÆOpen Item
ClearingÆPrepare Automatic Clearing.
Results:
The automatic clearing will be used for G/L account: GR/IR clearing, provision for freight, provision for
custom duty, provision for open item. The clearing will be done on the basis of the purchase order. The
clearing program could also be used for clearing bank sub-accounts.
The clearing program will also be configured for customer and vendor open items. The criteria for
clearing open items could be Document date, document number, allocation field (ZUONR), reference
number.
Participants:
Japan: Mr. Harito

India:
Darmstadt:
Singapore:
Mr. Abhyuday Rao

Level 2 Sub Process Payment Grouping-Payment programme
India:
Japan:
Scala Countries:
Description:
Wherever possible, the payment program will always group items together for payment. However, you
can also specify that an individual payment (a separate payment) is made for a particular item.
The payment program can only group together open items for payment if the open items in an account
have the same:
• Currency.
• Payment method in the item.
• Bank in the item.
• Contents of the grouping fields (if a grouping key is specified in the customer or vendor master
record).
Menu Path:
IMGÆFinancial AccountingÆAccounts Receivable/PayableÆBusiness TransactionsÆOutgoing
PaymentsÆAutomatic Outgoing PaymentsÆPayment MethodÆPayment Groupings.
Results:
The payments are centralized. The grouping is required only as per due date. Hence the open items
from invoices falling due for a vendor as of a particular date will be grouped together for payment.
Date Of Discussion: 04.07.2001.
Participants:
Japan: Mr. Harito

Darmstadt:
Singapore:

Level 1 Sub Process Standard posting Transactions
Level 2 Sub Process Asset Accounting Integration
India:
Japan:
Scala Countries:
Description:
The integration of Asset Accounting with the FI (Financial Accounting, including Accounts Payable and
Accounts Receivable) component makes it possible to carry out
Posting of asset acquisitions and retirements that are integrated with accounts payable and accounts
receivable
Posting of depreciation from Asset accounting to the appropriate general ledger accounts
Menu Path:
IMGÆFinancial AccountingÆAsset Accounting.
Results:
The Asset integration with FI is required thus resulting in automatic generation of FI –accounting
documents for posting in Assets module and also for depreciation.
Participants:
Japan: Mr. Harito

Darmstadt:
Singapore:
Mr. Abhyuday Rao.

Level 2 Sub Process Materials Mgt. Purchase Integration
India:
Japan:
Scala Countries:
Description:
There would be a requirement of MM-FI integration. As a result the goods movements in MM
Would automatically create a document posting in FI.
Menu Path: None.
Results:
There would be a requirement of MM-FI integration. As a result the goods movements in MM
Would automatically create a document posting in FI.
Participants:
Japan:
India:
Singapore:

Level 1 Sub Process Standard posting Transactions
Level 2 Sub Process Foreign Currency Valuation
India:
Japan:
Scala Countries:
Description:
When making valuations, exchange rate differences may occur. This is the case when an exchange rate
revaluation or devaluation takes place before you make your valuation.
When you valuate open items or accounts, each program requires certain specifications such as the
exchange rate and the procedure with which it is to make the valuation.
You use the valuation procedure to determine which valuation procedure is used. You can choose
between the lowest value principle, the strict lowest value principle and posting every exchange rate
revaluation and devaluation.
Menu Path:
IMGÆFinancial AccountingÆGeneral Ledger AccountingÆ Business
TransactionsÆClosingÆValuatingÆForeign Currency Valuation.
Results:
The procedures to be followed for valuation will be always valuate. Hence all revaluation or devaluation-
taking place at the period end will be valuated.
The exchange rate for valuation:
Description India Japan
Imports-Vendors Selling Rate Average Rate
Exports-Customers Buying Rate Average Rate
Bank Buying Rate Average Rate
A separate valuation procedure will be created for vendors, customers and for Bank Balance valuation.
Participants:
Japan: Mr. Harito
Darmstadt:
Singapore:
Mr. Abhyuday Rao.

Level 2 Sub Process Foreign Currency Valuation Level
India:
Japan:
Scala Countries:
Description:
The valuation can be done for the foreign currency balance sheet accounts not managed on open items
or for balance sheet accounts managed on open items basis.
With single valuation, every open line item in an account is valuated. The total difference of all open
items in an account is posted to an adjustment account. This retains the original balance in the
subledger and reconciliation account. The offsetting entry is made to the accounts for exchange rate
gains or losses from valuation.
Menu Path:
IMGÆFinancial AccountingÆGeneral LedgerÆBusiness TransactionsÆClosingÆValuatingÆForeign
Currency Valuation.
Results:
The valuation will be for both:
Accounts managed on open items and
Total account Balance Valuation.
The exchange rate resulting from the valuation will be posted to the valuation for exchange rate gain/loss
accounts.
Participants:
Japan: Mr. Harito

Darmstadt:
Singapore:
Mr. Abhyuday Rao.

Level 1 Sub Process Payments
Level 2 Sub Process Reasons forPayment Block
India:
Japan:
Scala Countries:
Description:
By entering the payment block the specific open line items could be excluded from payment run.
Menu Path:
IMGÆFinancialAccountingÆAccountsReceivable/PayableÆBusinessTransactionsÆOutgoing
PaymentsÆOutgoing Payment global settingsÆPayment Block Reasons.
Results:
The standard reasons for payment block and payment block will be used.
The standard blocks are as follows:
Indicator Reason
Free for payment
A Blocked for payment
R Invoice verification
Participants:
Japan: Mr. Harito

Darmstadt:
Singapore:
Mr. Abhyuday Rao.

Level 2 Sub Process Payment Terms
India:
Japan:
Scala Countries:
Description:
The most important data defined for terms of payment is the due date of the invoice. Thus terms of
payment denotes the date on which invoice falls due.
If defined in the customer or vendor master record, the system then defaults the terms of payment. You
can overwrite these terms during document entry or change them later once the document is created.
Some standard payment terms as maintained in the system are:
Payment Terms Description
001 Payable Immediate
01 002 Within 30 days 2 % cash disc.
Within 45 days Due net
Within 14 days 3 % cash disc.
004 Within 30 days 1 % cash disc
Within 60 days Due net
Within 14 days 3 % cash disc
The invoices chosen during automatic payment run take into consideration the terms of payment.
Menu Path:
IMGÆFinancialAccountingÆAccountsReceivable/PayableÆBusiness TransactionsÆInvoicesÆMaintain
Terms of Payment.
Results:
You can use the same key for the terms of payment for both customers and vendors who have the same
payment terms. SAP recommends, however, that you use different terms of payment keys for customers
and vendors and limit the permitted account type correspondingly within the terms of payment. This, for
example, then has an advantage if the sales department of your company changes a payment term for a
customer.
The requirements for terms of payment as discussed with Japan are:
For Customers:
Promissory Notes payment:
• 30 days
• 45 days
• 60 days
• 90 days
• 120 days
• 180 days
For Vendors:
Bills from the 20th of one month to the 20th of the next month are paid on the end of the following month.
These payments could be by bank transfer, Promissory notes.

Also payment terms are required as follows:
• 90 days
• 60 days
• 45 days
• 30 days
• 15 days
The requirements for terms of payment as discussed with India are:

Customers:
• Pharma (local): Immediate
• Pharma (Outstation) : 21 days
• Vit-E : 7 DAYS, 30 DAYS.
Chemicals:
• 30 days
• 45days
Cash discount is given in case of one party. One such payment term with cash discount will be configured.
Vendors:
• Immediate
• 30 days with 2% cash discount if paid within 30 days
• 45 days
• 30 days 4% cash discount
45 days 2% cash discount
60 days 1% cash discount.
• 90 days
• 120 days
• 180 days.
Participants:
Japan:
Singapore:

Level 2 Sub Process Payment Terms-standard
India:
Japan:
Scala Countries:
Description:
The most important data defined for terms of payment is the due date of the invoice. Thus terms of
payment denotes the date on which invoice falls due.
If defined in the customer or vendor master record, the system then defaults the terms of payment. You
can overwrite these terms during document entry or change them later once the document is created.
Menu Path:
IMGÆFinancialAccountingÆAccountsReceivable/PayableÆBusiness TransactionsÆInvoicesÆMaintain
Terms of Payment.
Results:
The various payment terms like simple payment terms, multi payment terms as required will be
configured in the template as process is harmonized.
Please refer page no: 30 for details.
Participants:
Japan: Mr. Harito.

Singapore:

Level 2 Sub Process Check Management
India:
Japan:
Scala Countries:
Description:
The check management functionality helps you to manage both prenumbered checks and those checks
allocated numbers from your own number ranges.
In the Financial Accounting Configuration menu, the check lots (number ranges) must be defined that
correspond to the actual check lots (in the printer). The print program uses this number range to link the
check with the payment.
The void reason codes will be as per the SAP standard.
Menu Path:
IMGÆFinancialAccountingÆAccount Receivable and Payable ÆBusiness TransactionÆOutgoing
PaymentÆAuto. Outgoing PaymentÆPayment MediaÆCheck Management.
Results:
India:
The prenumebred checks will be provided. Hence there would be check lots configured for the
respective house banks. The check numbers will be 6 digits.
Japan:
The check payment is not a method of payment.
Participants:
Japan:
India:
Darmstadt:
Singapore:
Mr. Abhyuday Rao.

Level 2 Sub Process Terms of Payment for Holdback &
Retainage
India:
Japan:
Scala Countries:
Description:
If an invoice is paid in installments, you must create several invoice items with the appropriate partial
amounts and various due dates when entering the document. You can do this using term of payment key
for holdback/retainage payment.
Menu Path:
IMGÆFinancial AccountingÆAccounts Receivable and Accounts PayableÆBusiness TransactionsÆ
Define terms of payment for holdback and retainage.
Results:
Following Hold back and retainage terms exist in the SAP standard system:
Payment Terms Holdback Percent Payment Terms

0017 1 30.000 0001
0017 2 40.000 0001
0017 3 20.000 0001
0017 4 10.000 0001
R001 1 40.000 ZR01
R001 2 30.000 ZR02
R001 3 30.000 ZR03
Such requirement exists in both India and Japan.

One such payment term will be configured in the common template.
Participants:
Japan:
Singapore:

Level 2 Sub Process Payment advice
India:
Japan:
Scala Countries:
Description:
Menu Path:
None
Results:
Required by Japan .To be discussed in detail during Roll out along with payment programme
Participants:
Japan:
Darmstadt:
Singapore:
Mr. Abhyuday Rao.

Level 1 Sub Process Interest Calculation
Level 2 Sub Process Overdue Items
India:
Japan:
Scala Countries:
Description:
The interest calculation feature allows you to calculate interest on the overdue customer line items.
Interest calculation is controlled by settings made in the interest indicator.
Interest is calculated using the debit interest rate defined for the interest indicator
The interest calculation process is as follows:
• First the program identifies the items on which interest is to be calculated according to the rules
defined in the interest indicator
• The program then determines the days for which interest is to be calculated, taking into account the
calendar type.
• After determining the items on which interest is to be calculated, the program works out the amount
in local currency, if a minimum amount is specified for the interest indicator, it compares the
calculated interest amount with the minimum amount.
Menu Path:
IMG Æ Financial Accounting Æ Accounts Receivable and Accounts Payable Æ Business Transactions
Æ Interest Calculation Æ Interest Calculation Global Settings Æ Define interest calculation types.
Results:
The interest calculation will be used. The interest will be calculated on all cleared items. The rate for
interest is different in both the countries. While in Japan it is 7.3% p.a. it is 20% p.a.in India.
Grace days will be allowed in Japan for calculating the start date of interest. If the amount remains
unpaid after the grace days grace are over the interest gets calculated from due date to the date of
payment.In case of India,the mimimum amount for calculation and passing an entry is 100 UNI –per
Invoice.Further interest calculation on overdue items ,irrespective of the fact,whether it is cleared or not
required for Information
Interest calculation will not be calculated on advance received from the customer.
Participants:
Japan: Mr. Harito

Darmstadt:
Singapore:

Mr. Abhyuday Rao.

Level 2 Sub Process Balance Interest Calculation
India:
Japan:
Scala Countries:
Description:
You can calculate interest on the balance of those of your G/L accounts, which are managed with open
item display by using the balance interest calculation function in the FI system. This function can be
used, for example, to doublcheck the interest calculated on your accounts by the bank.
The interest indicator controls interest calculation
The following data is stored in the system under the interest indicator:
• The calendar type used for defining the days due for interest. You can choose between the
bank, French, Japanese, and Gregorian calendars
• Interest rates and conditions
Menu Path:
IMG Æ General Ledger Accounting Æ Business Transactions Æ Bank Account Interest Calculation Æ
Interest Calculation Global Settings.
Results:
The balance interest calculation will be used for overdraft balances. The value date in the bank
statement will be used as the reference date from which interest will be calculated. This will be
configured during the roll out.
Date Of Discussion: As per Phase I
Participants:
Japan:
Darmstadt:
Singapore:
Mr. Abhyuday Rao.

Level 2 Sub Process Special General Ledger Interest
Calculation
India:
Japan:
Scala Countries:
Description:
The interest calculation feature allows you to calculate interest on the overdue customer line items.
Interest calculation is controlled by settings made in the interest indicator.
Interest is calculated using the debit interest rate defined for the interest indicator
The interest calculation process is as follows:
• First the program identifies the items on which interest is to be calculated according to the rules
defined in the interest indicator
• The program then determines the days for which interest is to be calculated, taking into account the
calendar type.
• After determining the items on which interest is to be calculated, the program works out the amount
in local currency, if a minimum amount is specified for the interest indicator, it compares the
calculated interest amount with the minimum amount.
Menu Path:
IMG Æ Financial Accounting Æ Accounts Receivable and Accounts Payable Æ Business Transactions
Æ Interest Calculation Æ Interest Calculation Global Settings Æ Define interest calculation types.
Results:
The interest calculation will be used. The interest will be calculated on all cleared items. The rate for
interest is different in both the countries. While in Japan it is 7.3% p.a. it is 20% p.a. in India.
Grace days will be allowed in Japan for calculating the start date of interest. If the amount remains
unpaid after the grace days grace are over the interest gets calculated from due date to the date of
payment.
Interest calculation will not be calculated on advance received from the
customer.
Participants:
Japan: Mr. Harito

Darmstadt:
Singapore:

Level 2 Sub Process Interest Posting
India:
Japan:
Scala Countries:
Description:
There is an option in the system to either calculate interest and post as a separate document or
calculate the interest without posting.
The interest indicator controls interest calculation. An interest indicator is assigned to the master
records of the customer and vendor accounts for whom interest is to be calculated.
Menu Path:
IMGÆFinancialAccountingÆAccountsReceivable/PayableÆBusinessTransactionsÆInterest Calculation.
Results:
The purpose of this discussion was to find out for which countries the requirement exists. The
requirement exists only in India where interest is to be calculated. Hence this will be considered during
roll out.
Date of Discussion: 15.05.2001.
Participants:
Japan: Mr. Harito.
India:
Darmstadt: Mrs. Bettina
Singapore:
.

Level 1 Sub Process Closing
Level 2 Sub Process Planning
India:
Japan:
Scala Countries:
Description:
In this you define plan periods and plan versions for Planning in FI financial statement versions.
Menu Path:
IMGÆFinancial AccountingÆGeneral LedgerÆBusiness TransactionsÆPlanning-
Results:
To be discussed in detail during Roll Out
Participants:
Japan: Mr. Harito

Darmstadt:
Singapore:
Mr. Abhyuday Rao.

Level 1 Sub Process Closing
Level 2 Sub Process Plan Data Integration with
Controlling
India:
Japan:
Scala Countries:
Description:
In this activity, you activate integrated planning for a required

planning version in G/L Accounting. This enables you to copy planning
data from the components Overhead Cost Controlling (CO-OM) or
Profitability Analysis (CO-PA) into the required plan version.
Menu Path:
IMGÆFinancial AccountingÆGeneral LedgerÆBusiness TransactionsÆPlanning->integrated planning.
Results:
To be dicussed in roll out.At present manual planning in on and Integration planning is off
Participants:
Japan:

Darmstadt:
Singapore:
Mr. Abhyuday Rao.

Level 1 Sub Process Correspondence
Level 2 Sub Process Correspondence/Financial calendar
India:
Japan:
Scala Countries:
Description:
Menu Path:
None
Results:
To be discussed in detail during India Roll out
Participants:
Japan:
Darmstadt:
Singapore:
Mr. Abhyuday Rao.

Level 1 Sub Process Reports/Financial Accounting
Level 2 Sub Process Standard Report List, Additional ABAP/4
Lists.
India:
Japan:
Scala Countries:
Description:
Standard reports are available for most of the reports required. These reports will be used.
However reports will also be developed through ABAP query, programming, report painter if required.
Menu Path:
None
Results:
Following FI relevant reports are required:

Cash Flow.
Financial Statements as per the foreign reporting and local reporting
Standard SAP reports like:
• Document Journal.
• Accounts Receivable reports.
• Account Payable reports
Debtors Aging etc.
Participants:
Japan: Mr. Harito

Darmstadt:
Singapore:

Level 1 Sub Process Reports/Financial Accounting
Level 2 Sub Process Ratios
India:
Japan:
Scala Countries:
Description:
The financial ratios can be calculated for the data pertaining to the entire company. This can be done
through report painter reports or through programming if required.
The data for report comes from the financial statement version, g/l accounts, and calculation formulas
given.
Menu Path:
None
Results:
Following ratios need to be calculated:

• Return on capital employed
• Debtors turnover ratio
• Stock turnover ratio
• Current Ratio.
• Debt equity Ratio,Returns on Networth,EPS
Participants:
Japan: Mr. Harito

Darmstadt:
Singapore:

Level 1 Sub Process Reports Financial Accounting
Level 2 Sub Process Migration Financial Accounting
India:
Japan:
Scala Countries:
Description:
The data can be transferred to R/3 using batch input for the following data:
G/L Account Master data
Accounting documents
Bank data
Customer data
Vendor Data
Menu Path:
None
Results:
The data will be transferred to SAP R/3 for all the above data. This will be done during the respective
country roll out.
Date of Discussion:
Participants:
Japan: Harito.
India: Aniruddha.
Darmstadt:
Singapore:
Abhyuday Rao

Level 1 Sub Process Tax
Level 2 Sub Process Tax calculation-sales tax other
countries
India:
Japan:
Scala Countries:
Description:
Menu Path:
None
Results:
Participants:
Japan:
Darmstadt:
Singapore:
Mr. Abhyuday Rao.

Level 2 Sub Process Stamp Tax
India:
Japan:
Scala Countries:
Description:
Menu Path:
None
Results:
Required by Japan.To be discussed in detail during Roll out
Participants:
Japan:
Darmstadt:
Singapore:
Mr. Abhyuday Rao.

Main Process Tax Valuation and A/C Determination
Level 2 Sub Process Withholding Tax
India:
Japan:
Scala Countries:
Description:
In some countries, the law provides that invoice recipients must withhold a certain portion of the invoice
amount and pay this as withholding tax on behalf of the vendor.
Withholding tax amounts are reported to the tax authorities at regular intervals and a statement is also
sent to the vendor periodically.
Withholding tax code must be specified to enable the tax amount to be calculated. This code is defaulted
(retrieved from the vendor master record) when entering a line item if tax must be withheld for the
vendor.
If a vendor is exempt from withholding tax, it must specified in the master record. The basis of the
withholding tax exemption is an exemption certificate, possibly temporary. In the master record of the
vendor, the number of this certificate and the date up to which the exemption is valid are specified. If an
exemption exists, the system either posts no withholding tax or posts tax at the reduced rate.
Menu Path:
IMGÆFinancial AccountingÆFinancial Accounting Global SettingsÆWithholding TaxÆExtended
Withholding Tax.
Results:
The Japan team felt that they withhold tax only in case of payments for Audit fees, Lawyers fees and
Royalty. These transactions are very few, some 5 transactions in a year. Furthermore, the vendor’s
invoice itself contains details on the amount to be withheld. Given the above, the Japan team felt that
they could manage the withholding tax function manually.
In case of Singapore also, the withholding tax is applicable only in case of import bills for services.
It was decided that the functionality of withholding tax be configured for India initially. Singapore shall
adopt it during the roll out phase.
The Withholding Tax certificate is required to be printed from the system only in case of EMIL. This shall
be taken up during the roll out phase for India.
Participants:
Japan:
India: Ms. Aruna, Mr. Magar, Mr Krishnan.

Level 2 Sub Process Taxing-specific VAD Tax rules
India:
Japan:
Scala Countries:
Description:
Menu Path:
None
Results:
To be discussed in detail during Roll Out.
Participants:
Japan:
Darmstadt:
Singapore:
Mr. Abhyuday Rao.

Level 1 Sub Process Revaluation
Level 2 Sub Process Price Control
India:
Japan:
Scala Countries:
Description:
The stock valuation is determined as per the price control in the material master. The price control could
be either standard price or moving average price.
The method of moving average price calculates a new price after every goods receipt where P.O. rate is
different from the rate as per the material master or on invoice receipt where the invoice rate is different
than that booked at the time of goods receipt.
The valuation of goods movement at standard price control uses a price that is constant for a period.
Depending on a company’s requirement this period can be defined as a time interval which has to be at
least a month.
Differences between standard prices and actual prices are not adjusted to material stock account
but posted as price difference .
Menu Path: None

The price control is maintained in the accounting view 1 screen of the material master.
Results:
The advantages and disadvantages of adopting the moving average price and standard price were
explained to the team members. Based on discussions, it was decided that the price control for stocks
would be different for different material types.
For E. India:
Raw Material: Moving Average Price.
Intermediate Goods: Standard Price.
Finished Goods (Manufactured): Standard Price.
Finished Goods (Traded): Moving Average Price.
For Japan:
For Singapore and all companies which use Scala currently:


The moving average gets adjusted either on a new goods receipt (where P.O. rate is different from the
rate as per the material master rate) or on invoice posting where the rate is different than that booked at
the time of goods receipt. However the adjustment to the moving average price at the invoice entry only
takes place if there is a sufficient stock existing at that point. In case of insufficient stock at the time of
invoice receipt i.e. there is not enough of stock or no stock to adjust the rate variation between the
invoice and goods receipt, this difference is posted as price difference.
In case of standard price control, the difference if any between the rate as maintained in the material
master and that when goods receipt is done for finished goods from the production order is always
posted to price difference. For all months in the fiscal year the manufactured goods are maintained at
the standard price. At the period-end this finished goods stock may require to be revaluated at the actual
cost for stock valuation as per the accounting requirements.
Participants:
Japan: Mr. Harito

Darmstadt: Mrs. Bettina

Level 1 Sub Process Account Determination FI/MM
Level 2 Sub Process Account Determination, Transaction Keys
for posting transactions.
India:
Japan:
Scala Countries:
Description:
The account determination (G/L Codes) during MM-FI document postings takes place automatically via
the following data:
PlantÆCompany CodeÆ Chart Of Accounts
Material TypeÆValuation Class
Movement TypeÆInternal Processing Key
A material is created for a plant. The plant is attached to the company code, which is attached to the
Chart Of Accounts. Hence when a user enters a company code or a plant when entering a transaction
the R/3 system determines the Chart of Accounts which is valid for company code.
The material type against which the material is created controls the valuation class in the accounting
view of the material master. Thus if a material is created for material type ROH (Raw Material) the
valuation class for raw material say 3000 or 3001 is allowed for entry in the valuation class field.
The G/L ledger code is attached to a valuation class.
Thus if you want to post a goods receipt of a raw material to a different stock account than if the goods
receipt were for trading goods though user enters the same transaction (i.e. goods receipt) the system
will choose the appropriate account code for raw material stock account if material is differentiated
through valuation class.
The movement type determines the internal account key, which is to be used.
Menu Path:
IMGÆMaterial ManagementÆValuation and Account AssignmentÆAccount DeterminationÆConfigure
Automatic postings.
Results:
The following valuation classes have been noted in the workshop:
India:
Material Type Valuation

Class
Raw Material Local
Import
Spare Parts Local
Import
SemiFinished Goods Manufg.
Finished Goods Local
F.G.-Manufg. Samples
Trading – F.G Local
Import
Operating Supplies Local
Import

Packing Material Local
Import
Japan:
Raw Material Local &

Imported
Spare Parts Local &
Imported
Traded Goods Local & Import
Operating Local & Import
Supply
Packing Mat Local & Import
Following general ledger account codes are taken for both India and Japan:
• Accounts for stock- BSX
Raw Material and Packing Material.
Spare Parts
Finished Goods
Trading (F.G.)
Operating Supplies
• Provision on Goods Receipt/ Invoice Receipt: WRX

GR/IR clearing account
• Offsetting Entry: GBB

Goods Receipt to stock from production order
Consumption
• Price Difference: PRD

Price Difference is segregated for
Raw Material
Packaging
Finished Goods
• Revaluation:UMB
Loss/Gain from Revaluation.
• Cost Of Goods Sold
Participants:
Japan: Mr. Harito

Darmstadt:
Singapore:
Mr. Abhyuday Rao, Mr. Raut

Level 1 Sub Process Account Determination FI/MM
Level 2 Sub Process Account Determination, Transaction Keys
for posting transactions.
India:
Japan:
Scala Countries:
Description:
The account determination (G/L Codes) during MM-FI document postings takes place automatically via
the following data:
PlantÆCompany CodeÆ Chart Of Accounts
Material TypeÆValuation Class
Movement TypeÆInternal Processing Key
A material is created for a plant. The plant is attached to the company code, which is attached to the
Chart Of Accounts. Hence when a user enters a company code or a plant when entering a transaction
the R/3 system determines the Chart of Accounts which is valid for company code.
The material type against which the material is created controls the valuation class in the accounting
view of the material master. Thus if a material is created for material type ROH (Raw Material) the
valuation class for raw material say 3000 or 3001 is allowed for entry in the valuation class field.
The G/L ledger code is attached to a valuation class.
Thus if you want to post a goods receipt of a raw material to a different stock account than if the goods
receipt were for trading goods though user enters the same transaction (i.e. goods receipt) the system
will choose the appropriate account code for raw material stock account if material is differentiated
through valuation class.
The movement type determines the internal account key, which is to be used.
Menu Path:
IMGÆMaterial ManagementÆValuation and Account AssignmentÆAccount DeterminationÆConfigure
Automatic postings.
Results:
The following valuation classes have been noted in the workshop:
India:
Material Type Valuation

Class
Raw Material Local
Import
Spare Parts Local
Import
SemiFinished Goods Manufg.
F.G.-Manufg. Samples
Trading – F.G Local
Import
Operating Supplies Local
Import

Packing Material Local
Import
Japan:
Raw Material Local &

Imported
Spare Parts Local &
Imported
Traded Goods Local & Import
Operating Local & Import
Supply
Packing Mat Local & Import
Following general ledger account codes are taken for both India and Japan:
• Accounts for stock- BSX
Raw Material and Packing Material.
Spare Parts
Finished Goods
Trading (F.G.)
Operating Supplies
• Provision on Goods Receipt/ Invoice Receipt: WRX

GR/IR clearing account
• Offsetting Entry: GBB

Goods Receipt to stock from production order
Consumption
• Price Difference: PRD

Price Difference is segregated for
Raw Material
Packaging
Finished Goods
• Revaluation:UMB
Loss/Gain from Revaluation.
• Cost Of Goods Sold
Participants:
Japan: Mr. Harito

Darmstadt:
Singapore:
Mr. Abhyuday Rao, Mr. Raut

Level 1 Sub Process Account Determination FI/SD
Level 2 Sub Process Revenue Accounting, Customer Account Group,
Materials Account Group.
India:
Japan:
Scala Countries:
Description:
System can be set so that account determination is dependent upon the following master data fields:
• Account group for material in the material master record
• Account group for customer in the customer master record
Reasonable subdivisions of materials can, for example, be:
• Revenues for services
• Revenues for packaging
• Revenues for finished products
• Revenues for trading goods
Reasonable subdivisions for customers can, for example, be:
• Revenues for foreign customers at home
• Revenues for foreign customers abroad
• Revenues for affiliated companies
You can select the following criteria for an account determination
• Condition type
• Chart of accounts
• Account group customer
• Account group material
• Account key
• Sales organization

• Distribution channel
G/L accounts are to be allocated for revenue account determination. Allocation is to be made for every
access sequence you have defined beforehand.
E.g. for access sequence:
• chart of accounts/sales organization/account group-customer/account group-material/account key
• chart of accounts/sales org./account keys
Menu Path:
IMGÆSales and DistributionÆBasic FunctionsÆAccount AssignmentÆAssign G/L Accounts.
Results:
The G/L accounts to be assigned for sales revenue are as per the Darmstadt Chart of Accounts.
Following G/L accounts have been determined in both countries:
Domestic, Export, Sales Revenue a/c

Affiliated
Commission, Credit Debit To Sales
Notes
Trade Discount Sales Revenue a/c
Cash Discount Cash Discount a/c -India
Returns Sales Returns
Freight Recovery & Freight and Insurance
Insurance
Consumption Tax Tax account
Debit Memo (Rate Sales Account
Difference)
*Free Goods Issue Sales Promotion
Replacement Special Cost of Sales
Bonus Sales Promotion
*The material code for material to be issued either as bonus item or as normal sale is the same. Goods
issue is normally debited to Cost of Goods Sold.
However the requirement for India, Japan and Singapore is that the goods issue for Bonus items should
be accounted as Sales promotion.
These has to be grouped under material consumption in the Financial Statement version local reporting.
The sales distinction as under would be met through reporting:
Domestic:
Manufactured
Traded
Export:
Traded
Manufactured

Participants:
Japan: Mr. Harito, Mr. Morakami.

India: Ms. Aruna, Mr. Magar, Mr. Vishwanathan, Mr. Karve
Darmstadt:
Mr. Abhyuday Rao, Mr. Namjoshi, Mr. Ananth Narayan

Main Process Tax Valuation and Account Determination
Level 1 Sub Process Lowest Value Valuation
Level 2 Sub Process Valuation Procedure for Balance Sheet Valuation
India:
Japan:
Scala Countries:
Description:
SAP R/3 supports the following methods for year-end valuation:

• Valuation according to lowest value principle
• LIFO valuation
• FIFO valuation
Under the lowest value principle, the lower of two possible valuation rates is determined for year-end
stock valuation.
In the LIFO valuation, the last-in first-out principle is used. The year end stocks represent the earliest
purchases
In the FIFO valuation, the first-in first-out principle is used. With this method, the oldest stocks of a
material are considered to be the first ones used. The year-end value of the stock is therefore calculated
based on the most recent stock received.
Menu Path:
IMGÆLogistics Æ Materials Management Æ Valuation Æ Balance Sheet Valuation Æ Determine Lowest

Value.
Results:
All the methods of year-end stock valuation was explained to the team. All the countries required the
period end valuation of stock on the lower of cost or market price. For capturing the market price, it was
decided that the “Commercial Price 1” field in the material master shall be used. The team required only
a report with the stock adjustment value calculated. This is because the system adjusts the individual
material MAP/Standard price on revaluation & this becomes the new price for valuation. This automatic
revaluation material wise is not desired by the team. The posting for the differential, if any, shall be done
manually
As a part of the Live Toolkit Workshop, the EMIL team required stock valuation on the basis of the FIFO
principle. It was later decided by EMIL that they do not require to valuate their stock on FIFO basis
henceforth. This is because, the EMIL team required that all materials be valuated on FIFO basis. In
case of manufactured items, the requirement was that the material consumption component in the
finished goods be revaluated on FIFO and a FIFO price calculated for the finished goods. However in
SAP revaluation can be done only for existing stock and not for consumed stock. Hence FIFO in real
sense was possible only for procured item and not for mfg. Item. The difficulties and limitations of the
SAP system to do the same was explained to the team. So the team decided that they shall not go for
any FIFO valuation and necessary notes shall be provided in their Balance Sheet in the first year of
change in the valuation method. .
Date of discussion: 21.05.2001.

Participants:
Japan: Mr. Harito

India: Mr. Krishnan, Ms. Aruna, Mr. Magar
Darmstadt:

Main Process Tax Valuation and Account Determination
Level 1 Sub Process Revaluation
Level 2 Sub Process Price Control
India:
Japan:
Scala Countries:
Description:
Please Refer page: 37 for details.
Menu Path: None.
Results:
The process of valuating the Finished Goods manufactured stocks at the standard price which was
earlier unique only to Singapore has now been harmonized and will be applicable for India and Japan as
well.
Participants:
Japan: Mr. Harito.
India: , Mr. Krishnan.

Main Process Bank Accounting/Cash Management
Level 1 Sub Process Cash Management
India:
Japan:
Scala Countries:
Description:
The functionality of cash management provides two reports:

Cash Position.
Liquidity Forecast.
The cash position report denotes the bank and cash position of a particular day. Cash management
position allows you to see what your bank account activity was on any given date as well as predict the
cash balance on any given date based on planned bank and payment transactions.
The cash management position summarizes planning levels for the bank account and cash accounts.
The planning levels are attached to the general ledger account.
Menu Path:
IMGÆTreasuryÆCash ManagementÆToolsÆPrepare Production start up and data set up
Results:
The cash management as functionality, is required to know the cash position of the company as of a
particular date. The break up in the cash position report is possible through planning levels. Following
planning levels will be configured:
Incoming Transfer.
Outgoing transfer.
Incoming Check.
Outgoing Checks.
Others.
Cash.
Participants:
Japan: Mr. Harito.

India: Ms. Aruna, Mr. Magar.
Darmstadt:
Singapore:
Mr. Abhyuday Rao.

Level 2 Sub Process Cash Forecast
India:
Japan:
Scala Countries:
Description:
The liquidity forecast allows you to predict future cash inflow and outflows. A/P transactions e.g. Invoices
that become due, commitments due to purchase orders, purchase requisitions are shown separately.
A/R invoices that are expected to be paid, and sales orders are also shown separately This allows you to
see expected net cash inflow or outflow on any given date in the future.
Cash management position allows you to see what your bank account activity was on any given date as
well as predict the cash balance on any given date based on planned bank and payment transactions.
The net cash flow on any given day can also be predicted by combining the liquidity forecast and cash
management position.
Menu Path:
None.
Results:
This functionality will be required. For this cash management will be activated. The cash forecast will be
displayed planning level wise. The planning level can get drilled down to planning groups. Thus
customers or vendors can be displayed as per the characteristics like risk or category.
Participants:
Japan: Mr. Harito

Darmstadt:
Singapore:

Level 2 Sub Process Origin-payment
India:
Japan:
Scala Countries:
Description:
The source symbols are defined in this step. These symbols are allocated either to the cash position or
the liquidity forecast.
Through this the appropriate planning levels or the planning groups are shown correctly under the
liquidity forecast or the cash position report.
The main purpose of source symbols is to define the module from which the underlying transaction
originated.
The source symbols are also allocated to the MM and SD modules. Through this the Purchase order
commitments or sales order commitment are shown correctly in the report as commitment.
Menu Path:
IMGÆTreasuryÆ Cash ManagementÆBasic SettingsÆSource Symbol.
Results:
The standard source symbols as follows will be used:

Source Description
BNK Bank accounting
MMF Materials Management
PSK Subledger accounting
SDF Sales and Distribution
Participants:
Japan: Mr. Harito
India:
Darmstadt:
Singapore:
Mr. Abhyuday Rao

Level 2 Sub Process Manual Planning
India:
Japan:
Scala Countries:
Description:
Manual planning enables you to enter the memo records. The memo records require the planning type.
The planning type is allocated to the planning level.
The manual planning records are shown in the report.
The memo record does not update any FI transactions.
Menu Path:
IMGÆTreasuryÆCash Management ÆStructuringÆManual Planning
Results:
The memo records will be used for Fixed Deposits liability, Debentures redemption, Loan installment etc.
The repayment amount of the period (in future) can be shown in the report by creating a memo record.
Participants:
Japan: Mr. Harito

Darmstadt:
Singapore:
Mr. Abhyuday Rao

Main Process Bank Accounting/ Cash Management.
Level 1 Sub Process Cash Management.
Level 2 Sub Process Account Clearing.
India:
Japan:
Scala Countries:
Description:
In this step, you maintain the minimum balance for each bank account in regard to cash concentration.
A report is to be run which suggests the amount above the minimum balance entered. This can be done
per cash account grouping name configured.
Menu Path:
IMG->Treasury Æ Business Transactions Æ Cash Concentration Æ Define Intermediate Account and
Minimum Balance
Results:
The cash-grouping name can be entered for the main bank and clearing accounts. Thus cash
concentration for the banks will be known.
Participants:
Japan: Mr. Harito

Darmstadt:
Singapore:
Mr. Abhyuday Rao

Main Process Bank Accounting, Cash Management
Level 2 Sub Process Cash Journal
India:
Japan:
Scala Countries:
Description:
The cash journal is a subledger of Bank Accounting. It is used to manage a company's cash
transactions. The system automatically calculates and displays the opening and closing balances, and
the receipts and payments totals. You can run several cash journals for each company code. Postings to
G/L accounts, as well as vendor and customer accounts can also be carried out.
The system offers you the following options:
• Entering, saving, and posting cash journal entries
• Displaying follow-on documents
You can also display the follow-on documents (FI documents) arising for the cash journal entries
posted.
• Defining cash journal business transactions (transactions that would take place for cash
payments and cash receipts).
• Printing the cash journal
Cash journal document types can be created separately for general ledger transactions, vendor
transactions Receipts, vendor transactions Payments, customer transactions receipts and customer
transaction for payments.
Menu Path:
IMGÆFinancial accountingÆBank AccountingÆBusiness TransactionsÆCash Journal
Results:
The cash box is located at the different locations of the company. Each of these is to be monitored
separately. Hence a separate cash journal will be created location wise.
Cash Journal transactions like:
Cash Transfer from Bank
Cash Transfer to Bank
Cash Sale
Cash Purchase etc.
need to be created. Such business transactions for the respective companies needs to be given
by the respective users.
The cash journal shows the on line position of cash on posting of transaction.
Any advance payment made to an employee cannot be routed through special g/l account as with the
case of other advances but will be directly debited as advance to employee without special g/l indicator.

Participants:
Japan: Mr. Harito

Darmstadt:
Singapore:

Level 1 Sub Process Bank Accounting /Cash Management
Level 2 Sub Process Electronic Account Statement
India:
Japan:
Scala Countries:
Description:
For electronic bank statement to be configured the external transactions as in the bank statement are
required.
External transactions (also known as business transaction codes) are bank-specific codes for business
transactions, each of which involves a different type of payment.
The external transaction code is issued by banks in the electronic bank statement. It converts the bank-
defined codes into its own system-internal transaction codes (known as posting rules), which in turn
trigger certain specific posting transactions in the system.
Menu Path:
IMGÆFinancialAccountingÆBankAccountingÆBusiness TransactionÆPayment TransacionÆElectronic
Statement/Manual Bank statement.
Results:
Japan:
The transactions for the bank statement are to be received.
India:
The transactions for the bank statement are as follows:
Direct Debits
Direct Credits
Check Payments
Check Deposits
Fund Transfer.
The G/L account for the bank sub accounts are as per the CMG chart of Accounts. These accounts are
differentiated for each house bank on the basis of transactions i.e.:
Main Bank Account
Incoming Checks Account
Outgoing Checks Account
Transfer-Domestic
Transfer-Foreign
Bank Collection
Notes Deposit
Cash Receipt

Participants:
Japan: Mr. Harito

Darmstadt:
Singapore:
Mr. Abhyuday Rao.

Level 2 Sub Process Degree Of freedom in cash Forecast.
India:
Japan:
Scala Countries:
Description:
Suggests whether additional planning groups would be required for liquidity forecast.
Menu Path:
IMG->Treasury Æ Cash Management Æ Master Data Æ Subledger Accounts Æ Define Planning
Groups.
Results:
Planning groups can be created any time. At present only planning groups as discussed in the workshop
will be created.
Participants:
Japan: Mr. Harito

India:
Darmstadt:
Singapore:
Mr. Abhyuday Rao

Level 2 Sub Process Complex cash Management.
India:
Japan:
Scala Countries:
Description:
Suggests whether additional planning groups would be required for liquidity forecast.
Menu Path:
IMG->Treasury Æ Cash Management Æ Master Data Æ Subledger Accounts Æ Define Planning
Groups.
Results:
Planning groups can be created any time. At present only planning groups as discussed in the workshop
will be created.
Participants:
Japan: Mr. Harito
India:
Darmstadt:
Singapore:
Mr. Abhyuday Rao

Level 2 Sub Process Origin
India:
Japan:
Scala Countries:
Description:
The source symbols are defined in this step. These symbols are allocated either to the cash position or
the liquidity forecast.
Through this the appropriate planning levels or the planning groups are shown correctly under the
liquidity forecast or the cash position report.
The main purpose of source symbols is to define the module from which the underlying transaction
originated.
The source symbols are also allocated to the MM and SD modules. Through this the Purchase order
commitments or sales order commitment are shown correctly in the report as commitment.
Menu Path:
IMGÆTreasuryÆ Cash ManagementÆBasic SettingsÆDefine Source Symbols.
Results:
The standard source symbols as follows will be used:

Source Description
BNK Bank accounting
MMF Materials Management
PSK Subledger accounting
SDF Sales and Distribution
Participants:
Japan: Mr. Harito
India:
Darmstadt:
Singapore:
Mr. Abhyuday Rao

Level 2 Sub Process Planning Group
India:
Japan:
Scala Countries:
Description:
In this step, the planning groups for customers and vendors is defined. Planning group are used to
segregate customers and vendors into different groups.
A planning group represents particular characteristics, behaviors or risks of the customer or vendor
group. Planning groups are a level below the planning level.
Thus the liquidity forecast can be displayed for a particular group of the vendor or customer in the
liquidity forecast report itself.
Menu Path:
IMG->TreasuryÆCash ManagementÆMaster DataÆSubledger accountsÆDefine planning groups.
Results:
The planning groups are defined as follows:

Customers:
Exports
Domestic
Others
Vendors:
Imports
Bills Payable.
Domestic.
Participants:
Japan: Mr. Harito

India:
Darmstadt:
Singapore:
Mr. Abhyuday Rao

Level 1 Sub Process Bank accounting
Level 2 Sub Process Cheque Deposit
India:
Japan:
Scala Countries:
Description:
Various functions regarding entries of Cheque Deposit for Bank Reconciliation are done her
-Create keys for posting Rules
-Assign Business Transactions
-Define posting rules for check deposit
-Definer variant for Check Deposit
Menu Path:
IMGÆFincial accountingÆBank AccountingÆBusiness TransactionsÆCheque Deposit.
Results:
Various settings done as per requirement

Participants:
Japan:
India: Ms. Aruna, Mr. Magar.

Darmstadt:
Singapore:
Mr. Abhyuday Rao.

Level 1 Sub Process Bank Accounting /Cash Management
Level 2 Sub Process Electronic Account Statement/Manual
India:
Japan:
Scala Countries:
Description:
For electronic bank statement to be configured the external transactions as in the bank statement are
required.
External transactions (also known as business transaction codes) are bank-specific codes for business
transactions, each of which involves a different type of payment.
The external transaction code is issued by banks in the electronic bank statement. It converts the bank-
defined codes into its own system-internal transaction codes (known as posting rules), which in turn
trigger certain specific posting transactions in the system.
Menu Path:
IMGÆFinancialAccountingÆBankAccountingÆBusinessTransactionÆPayment
TransacionÆElectronic Statement/Manual Bank statement.
Results:
Japan:
The transactions for the bank statement are to be received.
India:
The transactions for the bank statement are as follows:
Direct Debits
Direct Credits
Check Payments
Check Deposits
Fund Transfer.
The G/L account for the bank sub accounts are as per the CMG chart of Accounts. These accounts are
differentiated for each house bank on the basis of transactions i.e.:
Main Bank Account
Incoming Checks Account
Outgoing Checks Account
Transfer-Domestic
Transfer-Foreign
Bank Collection
Notes Deposit
Cash Receipt

Participants:
Japan: Mr. Harito

Darmstadt:
Singapore:
Mr. Abhyuday Rao.

Main Process Financial Accounting-AA
Level 1 Sub Process Asset Accounting
Level 2 Sub Process Limited Base Value
India:
Japan:
Scala Countries:
Description:
The base value for depreciation is closely linked to the selection of the depreciation calculation method.
The following base values are defined in the system:
• Acquisition value
• Acquisition value less unplanned depreciation
• Half of acquisition value
• Replacement value
• Half of replacement value
• Current net book value without special depreciation
• Average net book value
• Average net book value without special depreciation
• Current net book value
• Accumulated ordinary depreciation
• Accumulated special depreciation
• Sum of accumulated ordinary and special depreciation
• Limited base value (see below)
• Your own base value based on a customer enhancement
By entering a percentage rate, the base value for depreciation can be reduced. For example, entering
50.000 results in the base value being reduced by half. This reducing percentage rate can be entered in
the level definition of the multi-level method.
Limited Base Value
A maximum acquisition value can be entered as a base value for the calculation of depreciation. You
can enter this limited acquisition value, like all other base values, as a key (05) in the definition of the
multi-level method.
Limited acquisition value means that the system uses a given maximum amount as the base value. If the
actual acquisition value of the asset is smaller than the maximum amount, then the system uses the
actual acquisition value as the basis for depreciation. If the acquisition value of the asset is above this
maximum value, the system depreciates from the maximum value that was set.
Menu Path:
IMGÆFinancial AccountingÆAsset AccountingÆDepreciationÆValuation MethodsÆDepreciation
KeyÆCalculation MethodÆDefine Multi-level method.
Results:

The base value to be selected for Japan would be Acquisition value but with 10% being entered in the
reduction field in the multi-level method. This is because the depreciation, which is on useful life, is
calculated on the 90% of the original cost. For India the base value for depreciation will be the
acquisition cost.
Participants:
Japan: Mr. Harito

Darmstadt:
Singapore:
Mr. Abhyuday Rao.

Level 1 Sub Process Master Data- Asset Accounting
Level 2 Sub Process Asset Class
India:
Japan:
Scala Countries:
Description:
The asset classes can be used to structure the assets according to the requirements. Asset classes
apply in all company codes.
The asset class controls the following:
Default values to all asset master records in the class.
The screen layout, field characteristics (required/optional/suppressed) of the asset master record can be
set for the asset class.
The asset class can control the assignment of asset numbers.
The asset class is a selection criterion in all-standard reports in Asset Accounting.
Menu Path:
IMGÆFinancial AccountingÆAsset AccountingÆOrganization StructuresÆAsset ClassesÆDefine Asset
classes.
Results:
The following asset class will be defined:
India Japan
Freehold Land
Leasehold Land
Buildings Buildings
Annexures
Structures
Plant & Machinery Plant & Machinery
Computers Leased Assets
Furniture, Fixtures, Equipment
Office Equipment
Vehicles Vehicles
CWIP CWIP
Intangible Asset Intangible Asset
Software

Participants:
Japan: Mr. Harito

Darmstadt:
Singapore:
Mr. Abhyuday Rao.

Level 1 Sub Process Master Data Asset Accounting
Level 2 Sub Process Default Settings for Asset Class
India:
Japan:
Scala Countries:
Description:
The default settings for asset class are as follows:
• Account Determination: The key of an account determination must be stored in the asset class. In
this way, the account determination links an asset master record to the general ledger accounts to
be posted for an accounting transaction using the asset class.
• Screen Layout: The screen layout specifies the status of the fields in the asset master record. The
screen layout is used to determine if fields are required entry or optional entry fields, or if they are
suppressed completely
• Number Range Interval: In the asset class, you can specify the number range for the assignment
of numbers for that asset class.
Menu Path:
IMGÆFinancial AccountingÆAsset AccountingÆOrganisational structureÆAsset Classes.
Results:
Account Determination: The G/L accounts to be used will be as per the CMG Chart of Accounts.
Screen Layout:
Description Req. Optional Not Req.

Description x
Asset No x
Manage x
Historically
Cost Center x
Plant x
Location x
Evaluation x
Insurance x
Insurance Co. x
Insurance No x
Start Date x
Number Range: The number range is company code specific and will be internal. The number range will
be copied from SAP standard for the regional template.

Participants:
Japan: Mr. Harito

Darmstadt:
Singapore:
Mr. Abhyuday Rao.

Level 2 Sub Process Outline Categories-Asset Number,
Sub Number
India:
Japan:
Scala Countries:
Description:
Asset Main Number:
The asset main number has 12 alphanumeric characters. Asset class controls number assignment. By
specifying a defined number range, the external or internal number range can be chosen. Several asset
classes can use the same number range.
Asset Sub-Number:
The asset sub-number has 4 numeric characters. The number ranges need not be defined for sub
assignment. In the asset class it is to be defined whether the asset sub number is to be external or
internal.
In case of internal assignment the sub-number are assigned consecutively per main number starting with
“0000”.
In case of external number you can use your own method for assigning numbers.
Menu Path:
IMGÆFinancial AccountingÆAsset AccountingÆOrganisational StructuresÆAsset Class.
Results:
Asset Main Number:
The number range assignment will be internal and per asset class. The number range is defined per
company code.
Asset Sub-Number:
Internal number range is chosen.
Participants:
Japan: Mr. Harito

Darmstadt:
Singapore:
Mr. Abhyuday Rao.

Level 1 Sub Process Asset Accounting Master Data
Level 2 Sub Process Validation Rules
India:
Japan:
Scala Countries:
Description:
The validation rules are used for validating the data entered by the user while creating the asset master.
The system can issue either a warning or error after validating, if data entered is wrong.
These customized check rules supplement the standard check rules. A validation condition consists of
the following:
• Company code
• Specification of the point in time for the check
• Validation rule
A validation rule consists essentially of the following elements:

• Check rule, that cannot be broken (such as depreciation key is GWG1 or GWG2)
• Number of the error message that the system should produce if the check rule is violated
Menu Path:
IMG Æ Asset Accounting Æ Master Data Æ Define Validation.
Results:
Both Japan and India will require the validation. The check rule will be for the depreciation key that will
be used in a particular asset master record. If the depreciation key should not be used in the particular
master record belonging to the asset class a warning message should be given by the system
suggesting a change in the depreciation key.
Participants:
Japan: Mr. Harito

Darmstadt:
Singapore:

Level 2 Sub Process Default Values
India:
Japan:
Scala Countries:
Description:
The default values in the asset master per asset class could be as follows:
Insurance Values
Net Worth Tax
Depreciation Parameter
Leasing
By maintaining the layout in the asset class it is possible to activate or switch off the above parameters.
The fields can be supplied with default values by the respective asset class or maintained directly.
Menu Path:
IMGÆFinancial AccountingÆAsset AccountingÆSpecial Valuation.
Results:
The default values cannot be entered in the asset class, as the asset class is independent of the
company code. These default values will be filled in manually at the time of creation of asset master.
Participants:
Japan: Mr. Harito

Darmstadt:
Singapore:
Mr. Abhyuday Rao.

Level 2 Sub Process Long Text Template
India:
Japan:
Scala Countries:
Description:
Long text templates can be defined and assigned to the asset class. By means of these templates, the
system then supports the long text entry when fixed asset belonging to this asset class is created.
Menu Path:
IMGÆFinancial AccountingÆAsset AccountingÆMaster DataÆLong Text Templates.
Results:
Following long text templates would be used for the respective asset class:
India:
Vehicle:
License Number
Name of person to whom given
Chassis Number
Engine Number
Computers:
Label Number
Model Number
Technical Specification
User Name
Land and Building:

Area
Address

Participants:
Japan: Mr. Harito

India:
Darmstadt:
Singapore:
Mr. Abhyuday Rao.

Level 2 Sub Process Evaluation Groups
India:
Japan:
Scala Countries:
Description:
The evaluation groups and certain user fields allow the assets to be classified using a feature in the
master record.
The evaluation groups are another option for classifying assets for reports or user-defined matchcodes.
In the Info system, you can define the evaluation group as:
• A selection criteria
• sort criterion
Menu Path:
IMGÆFinancial AccountingÆAsset AccountingÆMaster DataÆUser FieldsÆEvaluation Groups.
Results:
The evaluation group will be used for following purpose in case of Japan:
Line of Production: The asset cost and depreciation needs to be known for each asset class. Hence by
creating Evaluation Group 1 as Product line the depreciation per line will be known.
Mortgage: The assets taken on mortgage needs to be known. The evaluation group 2 will be used for
this purpose.
Name of Company: Name of the company from whom the asset is taken on mortgage. Evaluation group
5(Eight characters) can be used for this purpose if required.
Participants:
Japan: Mr. Harito

Darmstadt:
Singapore:
Mr. Abhyuday Rao.

Level 1 Sub Process Environment and valuation
Level 2 Sub Process Property Indicator
India:
Japan:
Scala Countries:
Description:
The indicator puts at your disposal different property types, e.g. leasing or property, for your
assets. If you have different property forms and want to evaluate them, e.g. net worth tax, you
can store the indicator in the appropriate sort version .
Menu Path:
None
Results:
Required by Singapore.To be discussed in detail during Roll out
Participants:
Japan:
Darmstadt:
Singapore:
Mr. Abhyuday Rao.

Level 1 Sub Process Environment and Valuation
Level 2 Sub Process Unplanned Depreciation.
India:
Japan:
Scala Countries:
Description:
Unplanned depreciation can be posted for value correction resulting from long term decrease in asset.
The accounts for unplanned depreciation and the depreciation area to which it will be posted has to be
decided in advance.
Menu Path:
IMGÆFinancial AccountingÆAsset AccountingÆDepreciationÆUnplanned Depreciation.
Results:
Unplanned depreciation could be posted for book depreciation and EMD depreciation area.
Participants:
Japan: Mr. Harito

India: Mr. Magar
Darmstadt:
Singapore:
Mr. Abhyuday Rao.

Level 1 Sub Process Environment and valuation
Level 2 Sub Process Insurance Types
India:
Japan:
Scala Countries:
Description:
In the asset master record you can define information for insurance policies and insurable values,
and you can manage insurable values in their own depreciation area.
It is particularly useful to manage insurance data and insurable values in the master record in the
following instances:
• you need certain insurance data for informentional reasons
(such as liability or collision insurance for vehicles) and
• the valuation method in the existing depreciation areas (APC, indexed APC or net book
value) do not meet the needs of valuation for insurance purposes
(e.g. fire insurance and electronic insurance).
Menu Path:
None
Results:
To be discussed in detail during roll out.required by Singapore.
Participants:
Japan:
Darmstadt:
Singapore:
Mr. Abhyuday Rao.

Level 1 Sub Process Reports/Listing in Asset accounting
Level 2 Sub Process Standard Report List, Additional ABAP/4
Lists.
India:
Japan:
Scala Countries:
Description:
Standard reports are available for most of the reports required. These reports will be used.
However reports will also be developed through ABAP query, programming, report painter if required.
Menu Path:
None
Results:

Participants:
Japan:

Darmstadt:
Singapore:

Level 1 Sub Process Reports/Listing in
Asset accounting
Level 2 Sub Process Asset Accounting data migration
India:
Japan:
Scala Countries:
Description:
The data as per the SAP format for migration of asset data from the old system to the new system is to
take place. For this the data has to be given in a particular file format. This can be uploaded into SAP
through BDC program.
Menu Path:
None
Results:
The file for capturing the data in the required format will be given. The actual data will be loaded during
the roll out.
Participants:
Japan: Mr. Harito

Darmstadt:
Singapore:
Mr. Abhyuday Rao.

Main Process Tax Valuation and Account determination
Level 1 Sub Process Account Determination FI/SD
Level 2 Sub Process Business Area Assignment Revenues/Expenses.
India:
Japan:
Scala Countries:
Description:
Both revenue accounting in Financial Accounting and value postings for goods movements in Inventory
Accounting can be represented separately for each business area.
To do this, allocate business areas to sales areas according to different criteria.
Menu Path:
IMGÆSales and DistributionÆBasic FunctionsÆBusiness Area Account Assignment.
Results:
As the requirement for Business Area no longer exists this no longer needs to be configured.
Date of Discussion:
Participants:
Japan:
India:
Darmstadt:

FI

Enviado por

Dados do documento

Descrição original:

Direitos autorais

Formatos disponíveis

Compartilhar este documento

Compartilhar ou incorporar documento

Opções de compartilhamento

Você considera este documento útil?

Este conteúdo é inapropriado?

Direitos autorais:

Formatos disponíveis

FI

Enviado por

Direitos autorais:

Formatos disponíveis

Combined-Process Harmonization

Page 1 of 115115 Process Harmonization Results - FI

Page 2 of 115115 Process Harmonization Results - FI

Page 3 of 115115 Process Harmonization Results - FI

Page 4 of 115115 Process Harmonization Results - FI

Process required for:

Date of Discussion: 14.05.2001

Japan: Mr. Harito, Mr. Mito.

Page 5 of 115115 Process Harmonization Results - FI

Process required for:

See annexure: 2 Excel sheet for the master data.

Date of Discussion: 14.05.2001

Page 6 of 115115 Process Harmonization Results - FI

Page 7 of 115115 Process Harmonization Results - FI

Process required for:

See annexure: 3 Excel sheet for master data.

Page 8 of 115115 Process Harmonization Results - FI

Date of Discussion: 14.05.2001

Page 9 of 115115 Process Harmonization Results - FI

Process required for:

Please also refer Annexure: 5 for Bank Master Template.

Date Of Discussion: 23.05.2001

Japan: Mr. Harito

Page 10 of 115115 Process Harmonization Results - FI

Process required for:

Page 11 of 115115 Process Harmonization Results - FI

Date of Discussion: 14.05.2001

Page 12 of 115115 Process Harmonization Results - FI

Process required for:

Date Of Discussion: 15.05.2001

Japan: Mr. Harito

Page 13 of 115115 Process Harmonization Results - FI

Process required for:

Page 14 of 115115 Process Harmonization Results - FI

Coding logic for the account group:

Category of Vendor Running Number

Thus account group

Following account groups will be required for customer:

Page 15 of 115115 Process Harmonization Results - FI

Excel template for the number ranges is given.

Date of Discussion: 14.05.2001

Page 16 of 115115 Process Harmonization Results - FI

Process required for:

Date of Discussion: 14.05.2001 and 25.06.2001

Japan: Mr. Harito

Page 17 of 115115 Process Harmonization Results - FI

Process required for:

Standard field status variant:

0001 Field status for 0001

Field status group for a field status variant 0001:

Date of Discussion: 14.05.2001

Page 18 of 115115 Process Harmonization Results - FI

Process required for:

• how many posting periods a fiscal year has.

Date of Discussion: 14.05.2001

Page 19 of 115115 Process Harmonization Results - FI

Process Required for:

Variant Acct From To From Year To Year From To

Date of Discussion: 14.05.2001

Page 20 of 115115 Process Harmonization Results - FI

Page 21 of 115115 Process Harmonization Results - FI

Process required for:

Date of Discussion: 04.07.2001 and 15.05.2001