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11.05.2018
Organization structure

Enterprise structure is the structure that represents an enterprise in SAP ERP system. It is
subdivided into various organizational units which for legal reason or business related reason are
grouped together. Enterprise structure defines various levels in an organization.

What in the new GL Function in sap

SAP introduced New General Ledger functionality with the Enterprise release (ECC 5). The SAP
FI/CO components for Classic General Ledger, COS Ledger, Reconciliation Ledger, Special Purpose
Ledger and Profit Center Accounting have been merged to provide an integrated solution known as
New GL.

What is the meaning of GL account in SAP?

General Ledger (G/L) accounts are used to provide a picture of external accounting and accounts
and to record all the business transactions in a SAP system. This software system is fully integrated
with all the other operational areas of a company and ensures that the accounting data is always
complete and accurate.

Order to Cash Process

Order-to-Cash is an integration point between Finance (FI) and Sales (SD). It is also known as OTC or
O2C in short form. It is a business process that involves sales order from customers to delivery and
invoice. ... IN SAP {(SD)-Inquiry -Quotation-O

Procure to Pay

Accounts Payable / Procure to Pay (P2P) Process Overview. The Accounts Payable / Procure to Pay
(P2P) overall process covers the complete cycle from Vendor Master Maintenance through
procurement and Vendor Invoice Processing, the resulting Payment Processing to external vendors
and the Period Closing Activities.

Cash Journal

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.

Chart of accounts

1. In SAP, the Chart of Accounts (COA) is defined at the client level and assigned to each company
code. It is a list of General Ledger account's master data that fall under different account groups of
a company code. This grouping mechanism helps to develop better financial reports
2. If you have more than one company code and all the company dodes are using diferent chart of
accounts (COA) then cross company code controlling will not be possibleby using controlling area.
To avoide this problem one can use group chart of accounts a group COA used for consolidation
purpose. when more than one Operational COA is used by diferent company codes Group COA is
usful for internal reporting

To use group COA you need to assign it to the operating COA of a company code when you assign it
group a/c number field in the COA segment of the operating COA becomes a mandatory entry the
group chart of account must contain all the group accounts to get it to entered while creating a GL
Master in operating COA.
You can also assign one accont of GCOA to more than one account of an operating COA.

To get it consolidated you should define a separate financial version for the group chart of account.

The only disadvantage in group COA is, you can not have cross company code controlling. If you
want to have cross company code controlling then the best option is to have one operating COA for
all the company code and those company codes require special COA can get assigned to country
specific COA.

The country specific COA number is entered in the company code segment of a general ledger A/c
master in the field “Alternative Account Number”. Each country specific COA number can only be
used once.
e a decision before its implementation then things will be easy and clear.

A combination of group Chart Of Account, country specific COA, operating COA and cross company
code controlling can be used in SAP.

COA should always be decided with the business process owner before its implementation. As
changing COA after implementation is not possible. SAP financial consultant and financial business
owner from the business side should sit together and decide its COA.

After deciding the COA you need to consider the general ledger account and accounts groups to be
created within it. If you tak

What is r2r cycle?

Record to Report (R2R) is a Finance and Accounting (F&A) management process which involves
collecting, processing and delivering relevant, timely and accurate information. It provides strategic,
financial and operational feedback on how a business is performing.

14.05.2018
What is the importance of GR/IR ( Good Received/ Invoice Received) clearing account?
GR/IR ( Good Received/ Invoice Received) is an interim account. In the legacy system, if the goods
are received and the invoice is not received, the provision is made, in SAP at the goods receipt. It
passes the Accounting entry debiting the Inventory and crediting the GR/IR account. Similarly, when
an invoice is received the vendor account is credited, and the GR/IR account is debited, the GR/IR
will show as an un-cleared items till the time the invoice is not received.

What is parallel and local currency in SAP?

Each company code can have two additional currencies, in addition to the company code, currency
entered to the company code data. The currency entered in the company code creation is called
local currency and the other two additional currencies are called parallel currencies. Parallel
Currencies can be used in foreign business transactions. In order to do international transaction,
parallel currency can be used. The two parallel currencies would be GROUP CURRENCY and HARD
CURRENCY.

In SAP what is the use of FSV ( Financial Statement Version) ?

FSV ( Financial Statement Version) is a reporting tool. It can be used to extract final accounts from
SAP like Profit and Loss Account and Balance Sheet. The multiple FSV's can be used for generating
the output of various external agencies like Banks and other statutory authorities.

Explain what is posting key and what does it control?

In order to determine the transaction type which is entered in the line item, a two digit numerical is
used known as 'Posting Key'
Posting key determines
a) Account Types
b) Types of posting. Debit or Credit

In SAP FI what are the organizational elements?

The organizational elements in SAP FI are:
a) Company Code
b) Business Area
c) Chart of Account
d) Functional Area

What are the other modules to which 'Financial Accounting' is integrated?

The other modules to which 'Financial Accounting' is integrated are
a) Sales and Distribution
b) Material Management
c) Human Resource
d) Production Planning
e) Controlling of financial transaction

For a Company Code how many currencies can be configured?

There are three currencies that can be configured for a Company code, one is a local currency and
two are the parallel currencies.

What are the options in SAP for Fiscal years?

Fiscal year in SAP is the way financial data is stored in the system. In SAP, you have 12 periods and
four special periods. These periods are stored in fiscal year variant that is:
a) Calendar Year: From Jan-Dec, April-March
b) Year dependent fiscal year

What is a 'year shift' in SAP calendar?

SAP system does not know what is broken fiscal year e.g April 2012 to March 2013 and only
understand the calendar year. If, for any business, the fiscal year is not a calendar year but the
combination of the different months of two different calendar year and then one of the calendar
year has to classified as a fiscal year for SAP and the month falling in another year has to be
adjusted into the fiscal year by shifting the year by using the sign -1 or +1. This shift in the year is
known as 'year shift'.

Example: April 2012 to Dec 2012 is our first calendar year, and Jan 2013 to March 2013 is our
second year, now if you are taking April-12 to Dec-12 as your fiscal year, then Jan-13 to March-13
automatically becomes the second year, and you have to adjust this year by using -1 shift, and vice
versa if the scenario is reversed, here you will use +1 shift.

10) What is year dependent fiscal year variant?

In a year dependent fiscal year variant, the number of days in a month is not as per the calendar
month. For example, in year 2005, month January end on 29 th, month Feb ends on 26th etc.
{(SD)-Inquiry -Quotation-Order Processing} (FI) Invoice -Payment processing -Dunning.
 Order to Cash Process
SD FI
1 2
Inquiry Customer Invoicing Billing Comparision

Quotation Payment processing Complaint Incoming payment Posting

Order Processing Dunning Periodical Dunning Run Dunning Proposal

When customer matches the ordered quantity

and received quantity. If any mismatches in
ordered quantity and received quantity customer
Debit Note raises debit note against vendor
 3
Posting
f-22

Payment Run

Dispatch dunning document