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FI-CO
SAP Systems Application and Products in Data Processing

SAP is one of the ERP product which is developed in 1972 by 5 former IBM engineers

First time SAP was released in 1972 in Germany. SAP Head Quarters are in Germany

Version :4.6,4.7 ECC 5.0,6.0

ECC ERP Central component

ERP Enterprise Resource Planning

Enterprise Resource Planning. It integrates all the systems in one system. It facilitates free flow of data

among departments.

Various Types of ERP Packages: SAP, Oracle-Financials, JD Edwards, BAAN, People soft are various

types of ERP packages available in the Market. Among them SAP is Famous in the world

Enterprise : Enterprise stands for business organization with huge resource.

Resource An enterprise has following resources

Money (finance department)

Men (HR department)

Materials (Purchase and stores)

Manufacture (Production Planning)

Marketing (sales & Distribution)

Planning The bellow Planning activities are Performed in organization to improve

Productivity

Effective

Efficiency

The Moto of ERP systems is planning of resources in the organization in an effective

manner of get more Profits.

USER NAME: Cost of the SAP is based on Number of Users Major Benefit of Users is it fixes the responsibility of
the employee. Who has done ,what can be identified. So the responsibility will be fixed on employees. User name

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is not case Sensitive. We can use either Small Letters or Capital Letters

PASSWORD: Benefit of Passwords are for restricting the Un-authorized use of Users, Length of the Password can
be Minimum 6 and Maximum 40 characters. It is case sensitive. We can use Alphabetic, Numeric's, Alphanumeric
or Special Characters like " * " or "#" etc.

Note: It is not possible to change the password more than once in a Day
System will not permit us to use the last 5 passwords.
If we lost Password it can not be restored. Basis Consultant has to allot New Password

LANGUAGE: Along with package SAP has given 41 languages . If we do not specify the language, by
default system will use English ( EN) as language

If any user want to work on different screens at a single time, he can open up to a max of 6 windows or Sessions

WHAT IS SESSION: A session is a window or screen where SAP user will do day to day activities One user can
open 6 Sessions at a time.

HOW TO CREATE NEW SESSION

To create new session path is Menu Bar---->System---->Create Session

HOW TO MOVE FROM ONE SESSION TO ANOTHER:

Press Alt+Tab to move from One session to another session easily

HOW TO CLOSE SESSION: To close one session, path is Menu Bar---->System---->End Session

WHAT IS TRANSACTION CODE: Transaction Code is a code number given for each activity . SAP has given
some Transaction Codes ( TC's ) which are common in SAP throught the world. If customer / Purchaser want to
give their own TC's it should start either with "Y" or "Z". Other Alphabets are not allowed in SAP.

GOING BACK TO SAP EASY ACCESS SCREEN:

Use /N in Command Window . N is not case sensitive.

ACTIVATING TRASACTION CODES IN SAP MENU Some times TC's will not appear in SAP Easy Access
Menu. To activate them path is Menu Bar---->Extras---->Settings---->Display Technical Names Check Box and
Press Enter

What is Client ?

Client: Each Server can be configured with single client or multiple clients according to the business
requirement.
Each client will have they own set of tables

Normally when a Company ( ex. NCC) intends to start SAP in its Company, it purchases SAP software from SAP-
India. Price of SAP software is based on the Number of Users. Once company purchased the software, it recruits /
engage another Company (ex Cap Gemini) for implementation purpose. Both the purchaser and implementer will
recruit some employees for implementation of SAP. They are called as Core Team Members. Structure of Core
Team will be like below

NCC ( Purchaser) for Module CAP GEMINI( Implementer)

1 . Accounts Manager FICO 1 FI Consultant

2 Costing Manger FICO 2 CO Consultant
3 Purchase Manager MM 3 MM Consultant
4 Sales Manager SD 4 SD Consultant

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Core Team from Purchaser analyze the present situation in the Company and prepare the Process Document for SAP
Implementation

Basis Consultant will install or copy the SAP in Server and Create the Client Numbers
By default SAP-India is allotting 000 (or) 001 (or) 067 (or) 800 as Development Client #
Number of Production Client will be given by Basis Consultant after Discussing with
Purchaser. There will be Minimum of 2 Clients. Some companies are creating 3 clients

1. Development Client ------> for Customization purpose

2. Testing Client ------> for Testing purpose
3. Production Client ------> for Live Data, entering day to day activities

All the Customization will be done at Development Client only.

Server: Server is a physical device used to store organizational data, the server are managed with the database and
all types of data is stored in the table format (Rows &column)

Transport Request: TR are generated for configuration or customization and for development changes.

Transactional data: The day to day business transactions are called transactional data.

Ex: Posting general entries ,customer ,vendor and asset posting ext........

No transport request for transactional data the direct real time transactions are posted in production server by
business users.

Master data: Master data is base for posting transactional data and used for reporting.

Ex: GL Accounts
Customer
Vendor
Asset Master data
Material Master data
Cost Centre Master data
Profit Centre Master data Ext.......

Using upload methods the master data and transactional data will be loaded to quality and production server during
implementation and roll out projects

Upload Methods

LSMW (Legacy System Migration Work Bench)

BDC (Batch Data Conversion )
E-CATT's(Electronic Computer Aided Testing Tool)

FI Finance Accounting (module) is used to meet or achieve all statutory and internal financial
reporting requirements for generating P&L and Balance sheet reports.

Co Controlling is the module used to control the overhead cost and to generate more profits with
in the organization.

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1)Define Company
A company is the organizational unit used in the legal consolidation module to roll up financial statements
of several company codes.

A Company also used for group reporting or consolidated reporting.

A Company can be assigned one or more company codes

In Sap the basic information about company is stored with a key 6digit.

In normal terminology company is used to join independent branches together as a legal unit by the
consolidation.

Path: SPRO-- SAP Reference IMG --Enterprise Structure--Definitions--Financial Acc--Define

company OX15

Click on Define company

Select New Entries Button

Maintain Address Fields

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Click Create Request and Change Short Description

Select Save Button ( or) Ctrl + S Buttons for saving the Company Information

2)Define Credit Control

Credit Control area is an organizational unit which is used to maintain credit limits against customer of the
organization

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One company code must be assigned to only one credit control area, but same credit control area can be
assigned to multiple company codes

Path: SPRO--SAP Reference IMG--Enterprise structure--Definition--Financial Accounting--Define

Credit Control area OB45

Click On Define Credit Control Area

Select New Entries Button

Enter Credit Control Area and Back

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Maintain Description Customer Credit Control Area II02 and Currency INR

SAVE

3)Define Company Code

The Company Code is the smallest organizational unit for which a complete self-contained set
of accounts can be drawn up for purposes of external reporting.

Company Code is central organizational unit and all other logistic payroll controlling module
structure are to be assigned to the company codes

As per business requirements we can create one or more company codes

For Consolidation reporting company code must be assigned to the respective companies

If consolidation module is in scope each company code must be assigned to a company.

Path: SPRO- SAP Reference IMG- Enterprise Structure-Definitions-Financial Acc-Edit Copy

Delete Check Company Code OX02

Click On Edit Copy Delete Check Company Code

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Double Click On Edit Company Code Data

Click On New Entries

Maintain Fields Company Code, Company Name, City ,Country, Currency and Language

Click On Address Details

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Enter and SAVE

4)Define Business Areas

Business area is an organizational unit that corresponds to a specific business segment or area of
responsibility in a company. The financial statements are created business areas
for internal reporting purpose only. you can create as many business areas as you require. the definition
of business area is optional. you cannot assign the business areas to company. 

Path: SPRO-SAP Reference IMG-Enterprise structure-Definition-Financial Accounting-Define

Business Areas OX03

Click On Define Business Area

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Click On New Entries

Maintain the Fields Business Areas and Description

SAVE

5) Define Functional Area

Functional Areas are used to generate cost of sales reporting using departments like
Sales
Production
Marketing
Administration

It is an organizational unit, in accounting used to classify the expenses of an organization by the

departments.
Sap has standard multiple functional areas if they met business requirements so we can use existing
Functional areas.

0100 - Manufacturing
0110 - Direct Production Cost
012 - Overhead Production Cost
0300 - Sales and Marketing
0400 - Administration
0600 - Other operating income

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PATH:SPRO--SAP Reference IMG--Enterprise Structure--Definition--Financial Accounting--Define

Functional Area (FM_FUNCTION) OKBD

Click On Define Functional Area

We Use Existing Functional Areas

6) Define Consolidated Business Areas

Business areas are financial organizational units which are used to generate individual financial
statements at branch level product level

Business areas are maintain independent by the company code these areas are not assign to any
company codes can be used across all company codes.

PATH:SPRO- SAP Reference IMG--Enterprise Structure--Definition-Financial Accounting--Maintain

Business Consolidation Area OCC1

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Click On Maintain Consolidation Business Area

Click On New Entries

Maintain Consolidation Business Areas Vsp,Guntur,Vijayawada

SAVE

Assign Company Code to Company OX16

PATH: SPRO---->Enterprise Structure---->Assignment---->Financial Accounting---->Assign

Company Code to Company

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Click On Assignment and click on Assign Company Code to Company

Click On Position Button and Enter Company Code II02

Enter Company

SAVE

Assign Company code to Credit Control Area OB38

PATH: Same Path as above

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Click On Assign Company Code to Credit Control Area

Click On Position Button and Enter Company Code II02

SAVE

Assign Business Area to Consolidation Business Area OBB6

PATH: Same Path as Above

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Click On Assign Business Area to Consolidation Business Area

Maintain Business area VSP, Guntur, Vijayawada

Enter and SAVE

Chart of Account
Chart of Account consist a list of G/L accounts.

The Chart of Accounts(COA) controls the creation of G/L account.

All financial transactions must be posted to G/L accounts.

COA must be assigned to a company code. One Chart of Account can be assigned to many Company
codes.

Based on business organization structure and reporting requirements of country we can use three types
of chart of accounts.

Operational Chart of Account: The regular business transactions are posted to G\L accounts created
with reference to operational Chart of account

Group Chart of Accounts: Consolidation purpose will use group chart of accounts.

Country Chart of Accounts: As per country legal requirement will use country chart of accounts.

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Path: SPRO--Financial Acc New--General Ledger A/C--GL Accounts--Master

data--Preparations--Edit Chart of Accounts List
OB13

Click On Edit Chart of Account

Click On New Entries

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Maintain Field COA, Description, Language, Length of GL

Enter and SAVE

Same Path as above

Click On Assign Company Code to Chart of Account OB62

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Click On Position Button and Enter Company Code

Enter

Maintain Company Code II02

Enter and Save

Account groups
Account groups determine which fields you can configure on the G/L master record.

The standard SAP require at least two account groups, one for balance sheet accounts and one of the
profit and loss accounts.
 
Account group controls
The no ranges of Documents and Field status of the master records.

Define Account Group

PATH: Financial Accounting New--GL Accounting--Master Data--G/L Account --Preparations--

Define A/c Group OBD4

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Define Account Group

Click On New Entries

Maintain the Groups Liabilities Assets Revenues Incomes Expenses Fixed Assets

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Enter and SAVE

Retained Earnings Account

At the end of a fiscal year, the system carries forward the balance of the P&L account to the retained
earnings account.

PATH: Financial Accounting New--GL Accounting--GL Accounts--Master Data--Preparations--Define

Retained Earnings A/c OB53

Click On Define Retained Earning Account

Enter Chart of Account II02 and Enter

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Maintained P&L Statement Type' X 'and Account '1000100'

Enter and SAVE

Fiscal year Variant

Fiscal year is classified into Two types

1) Calendar fiscal year: Jan to December K4(USA)

2) Non calendar fiscal year : April to March V3(India)

July to June

October to September

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Year Shift: Year shift is the indicator used with non calendar fiscal years convert to two calendar
periods into one financial year

+1 Next Calendar year period

-1 Previous Calendar Year periods

Variant: Variant is a key within which we maintain settings relevant to certain configuration, the variants
are maintained at a client level and assign to the company codes

Fiscal Year is a period of 12 months and SAP provides 4 special periods. Fiscal year determines .Posting
periods are used to assign business transactions. Fiscal year may be year dependent or year
independent.

The Special periods in a fiscal year variant can be used for things like posting audit or tax adjustments.

Year Dependent

The financial year is same as calendar year. Starting from 1st Jan to 31st Dec (where posting periods and
the calendar months are equal)

Year Independent

The financial year is different from calendar year Starting from 1st April to 31st March (where the posting
period months are not equal to calendar year months)

Shortened Fiscal Year

A financial year, which has less than 12 periods.

PATH: Financial Accounting New--Fin. A/c Global Setting--Ledger--Fiscal Year--Maintain Fiscal

Year Variant OB29

Click On Maintain Fiscal Year Variant

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Select Fiscal Year Variant V3 and Click On Copy as Button

Change Fiscal Year Variant from V3 to II

Click On Copy all button

Enter and SAVE

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Financial Accounting--Fin. A/c Global Setting--Fiscal Year--Assigning Company Codes to Fiscal

Year Variant OB37

Click On Assign Company Code to Fiscal Year Variant

Click On Position Button and Enter Company Code II02 and Enter

Maintain Fiscal year Variant II and Enter

SAVE

posting periods

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The Posting period variant controls which posting periods, both normal and special, are open for each
company code. It is possible to have a different posting period variant for each company code in the
organization. The posting period is independent of the fiscal year variant.

PATH: Financial Accounting(new)--Financial Accounting Global Settings(New)--Ledger--Fiscal

Year and Posting Periods-- Posting Periods- - Define Variants for Open Posting Periods OBBO

Click On Define Variants for Open Posting Periods

Click On New Entries

Maintain Variant II02 and Name Posting Period Variant for II02

Enter and SAVE

Assign Posting Period Variant to Company Code

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Financial Accounting(new)--Financial Accounting Global Settings(New)--Ledger-Fiscal Year and

Posting Periods--Posting Periods -- Assign Company Code to a Posting Period Variant OBBP

Click on Assign Variants to Company Code

Click On Position Button and Enter Company Code II02

Enter

Maintain Variant II02 and Enter

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SAVE
Open and Close Posting Periods
PATH: Financial Accounting(New)--Fin A/c Global Settings--Leader--Fiscal year--Posting Periods--
Open and Close Posting Periods OB52

Click On Open and Close Posting Periods

Click On New Entries

Maintain Account Types A D K M S and Maintain Periods From 1 to 12 and Special Periods 13 to 16

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SAVE

Account Types

A Asset

D Customer

K Vendor

M Material

S General Ledger

Field Status Variants

We can control the field at
A Transaction level
B Group level
C Posting key level.

PATH: Financial Accounting New--Financial A/c. Global Settings--Ledgers--Fields--Define Field

Status Variants OBC4

Click On Define Field Status Variants

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Select Standard Field Status Variant 1000 and Click On Copy as Button

Change FSV From 1000 to II02 and Name Field Status for II02

Click On Copy all Button

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Enter and SAVE

If there is any business requirement we need to control the transaction level fields. Select FSTV and
Double click on Field Status variant

Select the field and double click on Field status group

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Double click on Genral data

Maintain Fields based on business requirement

EX: Make it required text field and Save

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When We select Suppress --------- Field will not be visible on Screen at the time of Posting

When We select Required --------- Field will appear with √ Mark. Without entering data in the
field , we cannot go to next field.

When We select Optional --------- Field will appear on Screen, but it is our choice to enter the data
or not

Assign Company Code to Field Status Variants OBC5

PATH: Financial Accounting(New)-Financial Accounting Global Settings(New)-Ledgers-Fields-

Assign Company Code to Field Status Variant

Click On Assign Company Code to Field Status Variant

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Click On Position Button and Enter Company Code II02 and Enter

Maintain Field Status Variant II02 and Enter and SAVE

Document types
Document type is the identifier of different account transactions like SA for G/L,AA for Asset Accounting
etc. The document. Types controls things like type of the account that can be posted , the document
types controls number ranges and it controls the header fields.

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PATH: Financial Accounting New- Financial Accounting Global Settings (New)-- Document--
Document Types-- Define Document Types for Entry View

OBA7

Click On Define Document Types

SAP has standard document types, based on client requirement we can use same document type
or create new document type or copy

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Document Number Range creation

Are defined at the specific interval with in which documents should be created in sap and document
number ranges depends upon company code and valid for the defined year. We can assign one or more
document types to each number range. The number range becomes effective by the document type
specified in document entry and Posting.

We have two types of Number Intervals

External: We need to maintain number ranges Manually
Internal: System will pick the number range automatically

PATH: Financial Accounting New--Financial Accounting Global settings-Documents-Document

number range-Document in Entry View-Define Document Number Ranges for Entry View

FBN1

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Click On Define Document Number Ranges for Entry View

Click On Define Document Number Range and Enter Company Code ' II02' and Click On Change
Interval Button

Click On Insert Interval and Enter No, Year, From No, To Number

Enter and SAVE

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Note: Up to 20 Number ranges we need to created

Posting keys
Posting keys determine whether a line item entry is a debit or a credit as well as the possible
field status for the transaction

PATH: Financial Accounting (New)-- Financial Accounting Global Settings (New)-- Document--
Define Posting Keys OB41

NOTE: SAP has standard Posting Keys, based on Client requirement we can use same Posting
Keys or create new Posting Key.

Click On Define Posting Keys

EX-- If we want to control posting key level double click on 06 posting key.

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Click On Maintain Field status

Which group we want to require .Double Click On Group

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Which field we want to make it Suppress or required or Optional

Enter and SAVE

Tolerance groups

Tolerance group for GL Account :

Tolerance group for account specifying the limit for payment or receipt of payment. it is by the
line item wise and creating the discount for the line item.

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PATH: Financial Accounting New--General Ledger accounts--Business Transactions--Open Item

Clearing--Clearing Differences--Define Tolerance Group for GL A/c
OBA0

Click On Define Tolerance Groups for G/L Accounts

Click On Define Tolerance Group for GL A/c and Click On New Entries

Enter Company Code' II02 ' Tolerance Group Description 'Tolerance Group for II02'

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Enter and SAVE

Tolerance group for Employees :

Tolerance group for Employees specifying the limits to the employees for the receiving
or payment amounts. 

PATH: Financial Accounting New--General Ledger Accounting--Business Transactions--

Open Item Clearing--Clearing Differences--Define Tolerance Group for Employees

OBA4

Click On Define Tolerance Groups for Employees

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Click On New Entries

Enter Company Code 'II02' Amount Per Document' 9999999999'and Cash Discount per line Item '5%'

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Enter and SAVE

Define Calculation Procedure

A calculation procedure is defined for each country, each containing the specifications required to
calculate and post tax on sales/purchases. Each calculation procedure contains several tax types, which
are called condition types in the procedure.
The system defaults condition types when you define a tax code. The condition type (such as input or
output tax) specifies the base amount on which the tax is calculated and the account key that is used to
post the tax. The specifications necessary for calculating and posting tax have been defined for the
condition type and account key.

PATH: Financial Accounting (New)-- Financial Accounting Global Settings (New)-- Tax on
Sales/Purchases--Basic Settings--Check Calculation Procedure OBQ3

Click On Check Calculation Procedure

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Double Click On Define procedures

Click On New Entries

Enter Procedure 'ZTAXIN' and Description' Sales Tax- India' and Select Line Item and Double Click On
''Control Data'

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Enter Fields Same Like Below

Enter and SAVE

Assign Country to Calculation Procedure

PATH: Financial Accounting (New)-- Financial Accounting Global Settings (New)-- Tax on
Sales/Purchases--Basic Settings-- Assign Country to Calculation Procedure OBBG

Click On Assign Country to Calculation Procedure

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Click On Position Button and Enter 'IN 'again Enter

Enter Procedure 'ZTAXIN' SAVE

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