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com

Financial Accounting Course

5101 Camden Lane, Pearland, TX 77584

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Introduction
SAP stands for Systems, Applications and Products in Data Processing. Five German Engineers
founded it in 1972. SAP is an ERP software which large organizations use to manage their
business. SAP has several modules, each of which represent a business-process. Modules are
usually abbreviated for the business process they represent. For instance, HR is Human
Resources, FI for Financial Accounting and SD is Sales & Distribution and so on. All together
there are some nineteen modules.

These modules are highly integrated in real-time, which means that if information is shared
between modules then the data is entered only once. This reduces the chances of error arising
from repetitive entry and also reduces the man-hours. Managers and decision makers always
have information at their fingertips and this helps then in effective decision making.

SAP has been around for over three decades. Nine out of ten Fortune-500 companies have
already implemented SAP (not counting the thousands of to-be Fortune-500 companies that have
SAP). There are well over 10 million SAP users worldwide and jobs keep popping up all around
the world.

SAP is the leading ERP (Enterprise Resource Planning) software. Because of it’s liberal open-
architecture, there are millions of programmers working around the world to provide interaction
between thousands of major software and SAP.

SAP is usually implemented in phases. The first phase is when organizational structure and
accounting components are configured, tested and then taken live. Gradually more modules are
turned on.

FI Course
The purpose of this book is to learn step-by-step general configuration methods for the FI module
which has always been the backbone of all SAP implementations. The course is built on menu
path navigation of the Implementation Guide (IMG) and the application area.

LearnSAP
LearnSAP strives to help students develop SAP skills and knowledge needed to complete in the
employment market and adapt to future changes. The training course combines classroom theory
of SAP technology with hands-on practice.

LearnSAP strives to evolve with the marketplace, delivering skills-based education that is
sensitive to market needs and convenient to students. Our goal is to help people develop into
employees who are equipped to meet the challenges of a marketplace where change is the one
constant.

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Table of Contents
Preface
Introduction
FI Course
LearnSAP
SAP Logon
Step 1 Reaching Implementation Guide (IMG)
Step 2 Define a Company
Step 3 Define a Company Code
Step 4 Assign Company Code to Company
Step 5 Define Chart of Accounts
Step 6 Assign Company Code to Chart of Accounts
Step 7 Setup Account Groups and their Number Ranges
Step 8 Assign Fiscal Year Variant to Company Code
Step 9 Assign Posting Period Variant to Company Code
Step 10 Document Number Ranges for the Company Code
Step 11 Assign Field Status Variant to Company Code
Step 12 Define Employee Tolerance
Step 13 Define Retained Earnings Account
Step 14 General Ledger Account Introduction
Step 15 Reconciliation Accounts
Step 16 Expense and Revenue GL Accounts
Step 17 GL Postings
Step 18 Display Balance of a GL account
Step 19 Display Line Item
Step 20 Reverse Entries
Step 21 Park Documents in General Ledger
Step 22 Post a Parked transaction
Step 23 Recurring Entries
Step 24 Account Assignment Model
Step 25 Setup tolerance for customers and vendors
Step 26 Customer Account Groups
Step 27 Create number ranges for customer accounts
Step 28 Assign number ranges to customer groups
Step 29 Customer Master Record
Step 30 Create Vendor Groups
Step 31 Create number ranges for vendor accounts
Step 32 Assign number ranges to vendor groups.
Step 33 Create Vendor Master
Step 34 Post a customer invoice
Step 35 Clear open items by incoming payments
Step 36 Post partial payment against an invoice
Step 37 Residual Payment
Step 38 Create underpayment account and Over payment accounts
Step 39 Assign under/over payment account to Process Key ZDI
Step 40 Create cash discount granted account
Step 41 Assign Cash discount granted account to process key ZDI
Step 42 Create Cash Discount take account
Step 43 Assign Cash Discount taken account to process key SKT
Step 44 Payment within tolerance (incoming)
Step 45 Payment within tolerance (outgoing)
Step 46 Payment within tolerance with 3% discount
Step 47 Configure Automatic Payment Program
Step 48 Financial Statement Version

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SAP Logon
Client = 800
Username = <your user name>
Password = <password>
Click on Enter

System Messages pops up, check the enter

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You come to the SAP initial screen. You can see the SAP menu divisions of SAP modules,
Office, Logistics, Accounting, Human Resources, Information Systems and tools. Each of these
modules are further divided into sub-modules and most of the work that we will be doing during
the course will be within Accounting or the IMG (Implementation Guide). And within Accounting
majority of training will be in Financial Accounting and Controlling.

Note that after each step, you can use the Back Button to quickly return to the IMG menu
screen.

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Step –1 Reaching the IMG

The setting or customizing of SAP is done via the IMG (Implementation Guide). The route to
reach the SAP Reference IMG will be as follows:

Menu Path:
SAP Main Screen > Tools > Accelerated SAP > Customizing > Edit Project (double click)

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Click on the “SAP Reference IMG” button

You will then see the IMG Menu Screen

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Step –2 Define a Company

A company is generally used in the legal consolidation module to roll up financial statements of
several Company-Codes. A company can consist of one or more Company-Codes. It is important
to make the distinction that a Company is NOT the same as a Company-Code.

Menu Path:
SAP Reference IMG > Enterprise Structure > Definition >Financial Accounting > Define Company
(double click on )

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Click on “New entries”

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Enter the details for the fields listed below:

Company (Enter a six-character alphanumeric identifier)

Company Name Name of your fictitious Organization
Street Street Address
Postal Code ZIP
City City
Country US
Language Key EN
Currency USD

Click on SAVE

A notification screen pops up showing that your request was carried out. Click on “Enter” to
continue on the pop up screen showing compliance of request

At the bottom of the screen in the “Status Bar” another message is given showing that the Data
was saved.

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Step 3 Define a Company-Code

A Company-Code is representative of a stand-alone legal entity that requires its own set of
accounting records for reporting purposes. The process of external reporting involves recording
all relevant transactions and generating all supporting documents for financial statements such as
balance sheet and profit and loss statements.

Menu Path:
SAP Reference IMG > Enterprise Structure > Definition > Financial Accounting > Define, copy,
delete, check Company Code (double click )

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Put the cursor on “Edit Company Code” and click on “Choose”

Click on “New entries”

Enter the detailed information:

Company Code: Key in four-character alphanumeric identifier
Company Name
City
Country
Currency
Language

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Click on Save

A new pop window will open enter the following information:

Title
Name (of the company)
Search terms
Street / house number
Postal Code/City
Country
Region
Language

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A notification screen pops up showing that your request was carried out. Click on “Enter” to
continue on the pop up screen showing compliance of request.

At the bottom of the screen in the “Status Bar” another message is given showing that the Data
was saved.

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Step 4 Assign a Company-Code to a Company

All objects defined are independently floating objects unless tied together in a relationship. By
assigning Company-Code to the company we define the relationship.

Menu Path:
SAP Reference IMG > Enterprise Structure > Assignment > Financial Accounting > Assign
Company Code to Company (double Click )

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Click on “Position”

Enter your Company-Code on the pop-up window. Click on Enter ( ) to continue

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Under the column “Company” and against your Company-Code, enter the six-character indentifier
for your company and click on Save

A notification screen pops up showing that your request was carried out. Click on “Enter” to
continue on the pop up screen showing compliance of request.

At the bottom of the screen in the “Status Bar” another message is given showing that the Data
was saved.

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Step 5 Chart of Accounts

A Chart of Accounts is a detailed listing of all the accounts the company uses for recording
transaction that represent both Balance Sheet and Profit & Loss accounts. Before configuring any
part of the enterprise structure it is vital to have drawn out and agreed upon what your structure
will look like. From a purely technical point of view the order in which you configure the chart of
accounts, the fiscal year variant and company code does not matter. In this step, we will show
you how to define Chart of Accounts.

Menu Path:
SAP Reference IMG > Financial Accounting > General Ledger Accounting > G/L Accounts >
Master Records > Preparations > Edit Chart of Accounts List (Double click )

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Click on “New entries”

Enter the following information:

Chart of Accounts = Key in four-character alphanumeric identifier
Description = Chart of Account for <your company name>
Maint Language = English
Length of G/L Account Number = 6 (the valid range is 4 to 10)
Controlling Integration = Manual creation of Cost Elements

Click on Save

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A notification screen pops up showing that your request was carried out. Click on “Enter” to
continue on the pop up screen showing compliance of request.

At the bottom of the screen in the “Status Bar” another message is given showing that the Data
was saved.

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Step 6 Assign Company-Code to Chart of Accounts

In this step, we will assign Company-Code to Chart of Accounts

Menu Path:
SAP Reference IMG > Financial Accounting > General Ledger Accounting > G/L Accounts >
Master Records > Preparations > Assign Company-Code to Chart of Accounts (double click )

Click on “Position”

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Enter your Company-Code on the pop-up window and hit enter (doing this will bring your
Company-Code on the top of the list)

Now that your Company-Code shows on the top of the list, enter your Chart-of-Accounts, 4
character identifier in the chrt/accts column and then click save .

A notification screen pops up showing that your request was carried out. Click on “Enter” to
continue on the pop up screen showing compliance of request.

At the bottom of the screen in the “Status Bar” another message is given showing that the Data
was saved.

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Step 7 Setup Account Groups and their Number Ranges

In this step we will show you how to configure Account Groups and their Number Ranges within
a Chart of Accounts. Account Groups determine which fields you can configure on the General
Ledger Master record. At the minimum it is necessary to have at least two account groups, one
for the Balance Sheet accounts and one for the Income Statement accounts. It is best to set up
all of your account groups.

Menu Path:
SAP Reference IMG > Financial Accounting ? General Ledger Accounting > G/L Accounts >
Master Records > Preparations > Define Account Group (Double Click )

Click on “New entries”

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Although there is no limit on how many account groups you create, in our example here we will
setup six account groups;

General Ledger

Balance Sheet Profit & Loss

Asset Liability Equity Revenue Expenses

Char/accts Acct Group Name From To

4 Character Identifier ASST Asset Group 100000 199999
4 Character Identifier LIAB Liability Group 200000 299999
4 Character Identifier REVN Revenue Group 300000 399999
4 Character Identifier EXPN Expenses 400000 499999
4 Character Identifier OTHR Other Income &
Expenses 500000 599999
4 Character Identifier EQTY Equity Group 600000 699999

click save .

A notification screen pops up showing that your request was carried out. Click on “Enter” to
continue on the pop up screen showing compliance of request.

At the bottom of the screen in the “Status Bar” another message is given showing that the Data
was saved.

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Step 8 Assign Fiscal Year Variant to Company-Code

In this step we are showing how to assign a Fiscal Year Variant to a Company-Code. Fiscal Year
Variant determines the posting periods to be used by your client’s company. As the name implies
it should be configured to match your client’s accounting year. The Fiscal Year Variant is very
flexible and can be configured to match any organization’s fiscal calendar. SAP allows a
maximum of 16 postings within a fiscal year. The 16 posting periods normally comprise of 12
regular posting periods and 4 special periods, which can be used for such things as posting
audits or tax adjustments to a closed fiscal period. Having four special posting periods gives you
a lot of flexibility. You may want to use one special period for each quarter and year-end audit
and/or tax adjustments. When you close a period or year in SAP you define which regular and
which special posting periods are allowed for posting. Because the default period for each posting
is one of the 12 regular posting periods you can be safe by keeping open one or more special
posting periods for posting.

Menu Path:
SAP Reference IMG > Financial Accounting > Financial Accounting Global Settings > Fiscal Year
> Assign Company Code to a Fiscal Year Variant ( Double click )

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Click on “Position”

Enter your Company-Code on pop-up window and hit enter (so that your Company-Code
shows up at the top of the list).

Once your Company-Code is showing at the top of the list, enter “K4” under the Fiscal Year
Variant column then click on Save

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A notification screen pops up showing that your request was carried out. Click on “Enter” to
continue on the pop up screen showing compliance of request.

At the bottom of the screen in the “Status Bar” another message is given showing that the Data
was saved.

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Step 9 Assign Posting Period Variant to Company

Posting Period Variant controls which posting periods, both normal and special, are open for
posting for each Company-Code. It is possible to have a different posting variant for each
Company-Code in your organization. The posting period variant is independent of fiscal year
variant. The number of posting period variants is determined by the closing schedule of each
company code.

Menu Path:
SAP Reference IMG > Financial Accounting > Financial Accounting Global Setting > Document >
Posting Periods > Assign Variants to Company Code (Double Click on )

Click on “Position”

Enter your Company-Code on the pop-up window and hit enter ( so that your Company-Code
shows at the top)

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Once your Company-Code is on the top of the list enter “0001” under “Variant” column then click
on Save

A notification screen pops up showing that your request was carried out. Click on “Enter” to
continue on the pop up screen showing compliance of request.

At the bottom of the screen in the “Status Bar” another message is given showing that the Data
was saved.

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Step 10 Document Number Ranges for Company-Code

There is one final piece of configuration that is needed before you can post entries in the system.
This step is setting up the document types and assigning their number ranges. SAP comes
delivered with several different document types that are assigned to different transactions in the
system. Each document type must have a number range assigned to it. The number ranges are
what determines the document number. The document number along with fiscal year is the audit
trail that is used in the system. As you are well aware, SAP utilizes the document principle,
meaning that every posting in the system is done through a document, thus providing detailed
drill down to the source of posting entries in the system.

Menu Path:
SAP Reference IMG > Financial Accounting > Financial Accounting Global Settings > Document
> Document Number Ranges > Define Document Number Ranges (Double Click on )

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Enter Company-Code = 0001 (This is SAP sample Company-Code or one you are copying from.
Since defining document number ranges is beyond the scope of this course, we copy from SAP
pre-configured company code.)

Click on the Copy Button

In the pop-up screen “From” will already contain the Sample Company Code (0001). Enter your
Company-Code in “To” field and click on copy button in the pop-up window.

Click on Enter on the next pop-up screen to continue, which is actually just a notice.

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SAP displays a message in the status bar at the bottom of the screen saying that Co Code
(XXXX) was copied to your company code (yyyy)

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