Made detailed documentation based on the all the
requirement received from initial brainstorm/workshop
sessions, project manager had identified the dates and
schedule plan.
FI-SD- Flow
SAP OTC Sales & Distribution
OTC Process Steps Transaction Code Accounting Entries
Inquiry VA11 No
Quotation VA21 No
Sales Order VA01 No
Post Goods Issue (PGI) - VL01n Yes
Delivery VL01n Yes
Billing VF01 Yes
Receipt of Money FB50 Yes
2. PGI done (Post Goods issue)
Cost of Goods Sold (COGS) Dr
To Inventory Account (Configured in OBYC GBB T-Key)
3. Billing document released to Accounting (Sales Invoice - F22/Fb70)
Customer Account Dr
To Sales Revenue Account Cr (ERL T-key in pricing procedure)
Note: The GL account is assigned to this ERL in VKOA
4. Payment Received
(Incoming Payment Invoice – F-28)
Bank Clearing A/c Dr
To Customer A/c
Movement types: Similar to posting keys in FI –
101 Material receipt against purchase order /production order, etc
Difference between 201 and 261
Material issue is identifiable to production orders use movement type 261
Material issue is not identifiable to production orders use movement type 201
Transaction key /process key
a) BSX Inventory postings
b) WRX Goods receipt /Invoice receipt (GR/IR)
c) PRD Price difference /Production order differences
d) GBB Offsetting entry for inventory postings
(i) VBR consumption
(ii) VNG Scrapping
(iii) BSA Opening stocks
(iv) ZOF Production receipt without production order
(v) AUF Production receipt with production order
(vi) VAY Delivery where sales account is created as revenue element (CO implemented)
(vii) VAX Delivery where sales account is not created as revenue element (Co not implemented)
(viii) AUA production order differences
Valuation class:
Valuation class determines the GL accounts to be posted automatically.
FI-MM
PRPOGRIR IR Verification PAYMENT Bank clearing
GR:
Inventory account DR - BSX - OBYC
TO GRIR account - WRX – OBYC
IR verification:
GR/IR A/c Dr – WRX - OBYC
To Vendor A/c –
Now the goods are moved from GR/IR A/c and Vendor is credited. Now you got the final entry of
Goods to Vendor Account i.e.
Inventory A/c Dr
To Vendor A/c
Payment:
Vendor account dr
To bank account
Bank clearing
Bank Clearing A/c Dr
To Bank Main A/c
Integration rules
A) In material master we specify valuation class
B) For valuation class we assign GL accounts based on the nature of transaction
C) At the time of material receipt/Issue stores person enters movement type, material number
and quantity. Our
Accounts will be up dated automatically based on accounts assignment to valuation class which
is specified In material master
Controlling
We can’t make cost center required in field status for balance sheet accounts
Report co line items: Business transaction RKU3
Transfer document wise /line item wise, transfer line item wise
Repot costs (Business transaction RKU1)
This is used when we split a cost center in to number of cost centres or wrong cost center postings.
Cost center report KSB1
Path : Accounting-Controlling-cost center accounting –Actual postings-manual reporting of costs –
Enter
(Transaction code is KB11N)
Actual comparisons –Cost centers: Actual /Plan/Variance (Tr code is S_ALR_87013611)
Creation of assessment cycle: (Tr.codeS_ALR_87005742)
Internal order
Orders will be of 2 types
1) Real orders - Order is real (Automatically cost center will be statistical )
Settlement is possible
We can settle order
2) Statistical orders - Order is statistical (Automatically cost center will be real)
settlement not possible
statistical orders are used for decision making
When we transfer from Internal order settlement.
Eg. Telephone expenses Dr 50000 Cost center Dept
Order Tel no.66110883
To Bank 50000
The cost will be allocation to production orders from CO
In the production order valuation we can’t take.(50000+50000)
We have to take only one time 50000
Profit center:
To view variance report profit center wise for balance sheet items: (Tr code
S_ALR_87013336)
Asset accounting is a submodule in SAP which manages companies fixed asset.
What are the kinds of Assets in SAP?
Asset can be simple asset or complex asset, based upon the requirement assets are
maintained with main asset and sub asset. Complex one may have more sub assets.
5. What is Group asset in SAP? When you will use
this?
A ‘Group Asset’ in SAP is almost like a normal asset, The concept of group asset becomes necessary
when you need to carry out depreciation at a group level, for some special purposes such as tax
reporting. Remember that SAP’s way of depreciation is always at the individual asset level.
What is a Chart of Depreciation? How does it differ
from a Chart of Accounts?
The chart of accounts can be global, country specific, and industry specific based on the needs of the
business. The chart of depreciation is only country specific. The charts are independent of each other.
A chart of depreciation is a collection of country specific depreciation areas. The chart of accounts is a
list of GL accounts used in a Company Code.
Depending on the requirement you may have an ‘operating chart of accounts,’ ‘country specific chart
of accounts,’ ‘global chart of accounts,’ etc. One Company Code uses only one chart of depreciation
How do You Create an Asset Accounting Company
Code?
i. Define the Company Code in FI configuration, and assign a chart of accounts to this Company
Code.
ii. Assign a chart of depreciation to this Company Code in FI-AA configuration.
iii. Add necessary data for the Company Code for use in FI-AA, and your ‘asset accounting Company
Code’ is now ready for use.
What is Depreciation? Explain the Various Types?
Depreciation’ is the reduction in the book value of an asset due to its use over time. The depreciation
can either be planned or unplanned.
In SAP, you will come across three types of depreciation:
1. Ordinary depreciation, which is nothing but ‘planned depreciation.’
2. Special depreciation, which is over and above ‘ordinary depreciation,’ used normally for taxation
purposes.
3. Unplanned depreciation, which is the result of reducing the asset value due to the
sudden occurrence of certain events
Define Depreciation Areas?
Fixed assets are valued differently for different purposes (business, legal, etc.). SAP manages these
different valuations by means of ‘Depreciation Areas.’ There are various depreciation areas such as
01-book depreciation, tax depreciation, and depreciation for cost-accounting purposes, etc
11. How do You Set up Depreciation Area postings to FI
from FIAA?
It can be any one of the following scenarios:
Post depreciation through ‘periodic processing.’
Post both the APC (Acquisition and Production Costs) and depreciation through periodic processing.
Post the APC in ‘real time’ but depreciation through periodic processing.
No values are posted.
Describe Transfer of Legacy Asset Data to SAP?
One of the challenges in the implementation of FI-AA is the transfer of ‘Legacy Asset Data’ from your
existing systems to SAP FI-AA. Though SAP provides multiple options and appropriate tools to carry
out this task, you need a carefully planned strategy for completing this task. You may have to transfer
the old asset values through any one of the following ways:
Batch data inputs (large number of old assets)
Directly updating the SAP Tables (very large number of old assets)
Manual entry (few old assets)
. What is Periodic Processing in FI-AA?
‘Periodic Processing’ in FI-AA relates to the tasks you need to carry out at periodic intervals to plan
and post some transactions.
The tasks include:
Depreciation calculation and posting.
As you are aware, SAP allows automatic posting of values from only one depreciation area (normally
01 -book depreciation). For all other depreciation areas, including the derived ones, you need to
perform the tasks periodically so that FI is updated properly.
Planned depreciation/interest for CO primary cost planning.
Claiming and posting of ‘investment support’ (either ‘individually’ or through ‘mass
change’).
What is a Depreciation Key?
Depreciation is calculated using the ‘Depreciation Key’ and Internal Calculation Key in the system.
Depreciation keys are defined at the chart of depreciation level, and are uniform across all Company
Codes, which are attached to a particular chart of depreciation. The depreciation key contains all the
control amounts defined for the calculation of planned depreciation. The system contains a number of
predefined depreciation keys (such as LIMA, DWG, DG10, etc.) with the controls already defined for
calculation method and type. A depreciation key can contain multiple internal calculation keys.
Explain the Various Steps in a Depreciation Run?
1. Maintain the parameters for the depreciation run on the initial screen of the Transaction AFAB
(Company Code, fiscal year, and posting period).
2. Select a ‘reason’ for the posting run (repeat run, planned posting run, restart run, or
unplanned run).
3. Select the appropriate check boxes in the ‘further option’ block if you need a list of assets, direct FI
posting, test run, etc. Please note that it is a good practice to select the ‘test run’ initially, see and
satisfy the outcome of the depreciation run, then remove this ‘check box’ and go for the ‘productive
run.’
4. Execute the test run (if the assets are less than 10,000, you may then do the processing in the
foreground; otherwise execute the run in the background).
5. Check the results displayed.
6. Once you are convinced that the test run has gone as expected, go back to the previous screen,
uncheck the ‘test run’ check box, and execute (in the background).
7. Complete the ‘background print parameters,’ if prompted by the system. You may also decide to
schedule the job immediately or later. The system uses the ‘depreciation-posting program’
RABUCH00, for updating the asset’s values and generating a batch input session for updating FI-GL.
The ‘posting session’ posts values in various depreciation areas, interest, and revaluation, besides
updating special reserves allocations and writing off, if any. If there are more than 100,000 assets for
depreciation calculation and posting, you need to use a special program, RAPOST00.
8. Process the ‘batch input session’ created by the system in step-7 above. You may use the
Transaction Code SM35. Again, you have the option of processing the session in the foreground or in
the background.
9. System posts the depreciation in FI-GL.
48. Explain Year Closing in FI-AA?
The year-end is closed when you draw the final balance sheet. But, to reach this stage, you need to
ensure that the depreciation is posted properly; you can achieve this by checking the ‘depreciation list’
and also the ‘asset history sheets.’ After this is done, draw a test balance sheet and profit and loss
statement and check for the correctness of the depreciation. Correct the discrepancies, if any, with
adjustment postings. You need to re-run the depreciation posting program if you change any of the
depreciation values. When you now run the ‘Year-End Closing Program,’ the system ensures that the
fiscal year is completed for all the assets, depreciation has fully posted, and there are no errors
logged for any of the assets. If there are errors, you need to correct the errors before re-running the
year-end program. When you reach a stage where there are no errors, the system will update the last
closed fiscal year, for each of the depreciation areas for each of the assets. The system will also block
any further postings in FI-AA for the closed fiscal year. If you need to re-open the closed fiscal year for
any adjustments postings or otherwise, ensure that you re-run the year-end program so that the
system blocks further postings.
ASSET ACQUISITION
The entry that gets generated on processing this transaction is as follows:
Dr Asset a/c
Cr Vendor a/c
The asset value dates are mentioned at the time of purchase. The asset value dates determine the
date from which the depreciation would be calculated.
2) RETIREMENT/SALE OF AN ASSET
The entries that get generated are as below: (with notional figures)
When asset is sold
Dr. Accumulated Depreciation A/c
Dr. Loss on Sale of Asset A/c (if applicable)
Dr. Clearing Account from Asset Sale
Cr. Asset (APC Value) A/c
Cr. Profit on Sale of Asset A/c (if applicable)
When the asset sold is cleared against the customer invoice
Dr. Customer A/c
Cr. Clearing Account from Asset Sale
At the time of payment,
Dr. Bank Incoming A/c
Cr. Customer A/c
3) WRITE-UP OF AN ASSET
The accounting entry that gets generated is:
Dr Accumulated depreciation a/c
Cr Depreciation
4) DEPRECIATION POSTING RUN
The entries that get generated are as below:
Dr Depreciation a/c
Cr Accumulated Depreciation a/c
