SAP ERP - S/4 HANA IMPLEMENTATION GUIDE

FINANCE AND CONTROLLING

S4 HANA with FIORI – General Ledger - I

I am writing the document for individuals who want to Learn SAP FICO modules.
I'm using the Tata Consumers Products FMCG Company as an example so that you all can easily connect and learn
every potential setup and sequence
Details are captured from the Latest Financial statement 2022-2023 published by Tata Consumer Products FMCG Company
https://www.tataconsumer.com/investors/investor-information/annual-reports
The Book's Objective
This book aims to provide a comprehensive guide for SAP S/4HANA Finance configuration, covering all key financial and
controlling functionalities for new installations.

 Greenfield implementations are new SAP S/4HANA implementations

 Brownfield implementations are upgrades from a previous SAP version.

This book is based on the SAP S/4HANA 2020 release

This document will be publicly available and shareable with anyone interested in learning SAP ERP systems.
I hope this document serves as a reference and makes life easier in SAP consulting in General Ledger Accounting.

SAP ERP - S/4 HANA | BHARATH MUDIGONDA MBA, (PH.D)OU.

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SAP OVERVIEW
SAP ERP products were built as standard software to fulfill a variety of industrial requirements around the world. Standard softwear
cannot be used as is. The software must be adapted to the needs of various sectors, including cross-country functionality and cross-
industry business procedures. The standard integrated product has to be customized or configured with the specific industry
requirements.
Customization task: Many organizations do not understand how to represent their organization structures and business processes in
the standard software. Customization of Business processes requires a specialist organization i.e. called an Implementation Company.
The implementation company selects and forms a group of expert people. This group of people is called a Consultant group.
This consultant group has not only expertise in the standard software definitions but also in understanding the organization’s
structures and business processes. The Consultant team and core team have to define the Deliverable Milestones and accordingly
monitor the project. This document is a guide for the implementation of a project. This document is called ASAP METHODOLOGY OR
SOLUTION MANAGER. It is a road map for the consultant, to customize the business processes.

“The success or failure mainly depends on the methodology we have adopted during the project implementation”

In this Book we are adopting ASAP Methodology and the details are below.
ASAP Methodology is designed to accelerate the implementation process, providing preconfigured templates, best practices, and
tools to speed up the configuration and customization of SAP systems.
The ASAP Methodology consists of five phases:
Project Preparation:
Define the project scope, objectives, and overall strategy.
Assemble the project team and allocate resources.

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Establish the project organization and infrastructure.

Develop a high-level project plan and budget.
Business Blueprint:
Gather and document detailed business requirements.
Create a comprehensive blueprint that outlines how SAP will meet these requirements.
Conduct workshops and interviews with key stakeholders to finalize the design.
Document the as-is and to-be processes.
Realization:
Configure the SAP system based on the finalized blueprint.
Develop any necessary customizations or enhancements.
Conduct unit testing to ensure individual components work correctly.
Develop end-user documentation and training materials.
Final Preparation:
Perform system integration testing to validate the entire solution.
Conduct user acceptance testing (UAT) with key stakeholders.
Train end-users and support teams. Finalize data migration and cutover plans.
Go-Live and Support:
Deploy the SAP solution to the production environment.
Monitor system performance and resolve any issues that arise during the initial period after go-live.

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Provide ongoing support and maintenance.

Conduct a project review and document lessons learned.

Understanding SAP S/4 HANA

SAP HANA is an in-memory relational database management system developed by SAP. Here are some key points about SAP HANA:

In-Memory Computing: SAP HANA is designed for in-memory computing, meaning it stores and processes data in RAM (Random
Access Memory) instead of reading from and writing to traditional disk storage. This architecture enables high-speed data processing
and real-time analytics.

Columnar Storage: Data in SAP HANA is stored in a columnar format, which is optimized for analytical queries and allows for faster
data retrieval and aggregation.

Parallel Processing: SAP HANA leverages parallel processing techniques to distribute computing tasks across multiple CPU cores, which
enhances performance and scalability.

Advanced Analytics: Besides traditional relational database functionalities, SAP HANA offers advanced analytics capabilities such as
predictive analytics, text analytics, geospatial processing, and machine learning algorithms. These features empower organizations to
derive valuable insights from their data.

Overall, SAP HANA is a powerful and versatile database platform that not only supports transactional and analytical workloads but
also enables advanced data processing and analytics capabilities to drive digital transformation and innovation within businesses.

Release Strategy for SAP S4Hana Annual Updates:

The release strategy for SAP S/4HANA involves annual updates, which originally used a naming convention that includes the name and
year of the release. Starting in 2020, the naming convention switched to just include the full year. As of the writing of this book, the
following SAP S/4HANA releases had been released:

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• SAP S/4HANA Finance 1503: March 2015

• SAP S/4HANA 1511: November 2015
• SAP S/4HANA Finance 1605: May 2016
• SAP S/4HANA 1610: October 2016
• SAP S/4HANA 1709: September 2017
• SAP S/4HANA 1809: September 2018
• SAP S/4HANA 1909: September 2019
• SAP S/4HANA 2020: October 2020
This book is based on the SAP S/4HANA 2020 release.

Significant Advancements in Finance:

SAP S/4HANA has brought several significant advances in finance and accounting processes for organizations. Here are some of the
key advancements in the finance area in SAP S/4HANA
Universal Journal:
The Universal Journal, the most fundamental advancement in SAP S/4HANA Finance, combines all finance relevant data into a single
table, table ACOOCA, which is often referred to as the single source of truth.
Material Ledger:

 Actual costing: The system stores price differences during any material movement. At the end of the month, the actual costing
run calculates the actual prices for inventory in stock and for inventory for consumption.
 Parallel currencies and parallel valuations: The material ledger provides valuations in multiple currencies and valuation
principles
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Margin Analysis:
In SAP S/4HANA, account-based profitability analysis is mandatory, whereas costing-based version is optional. The account-based
option is fully integrated with the Universal Journal so it should be able to fulfill both profitability analysis needs and accounting
reconciliation needs. One of the main reasons that account-based profitability analysis now should fulfill all needs is that it provides
cost of goods sold (COGS) split functionality.
New Asset Accounting:
This capability offers real-time integration with the Universal Journal.

GENERAL LEDGER ACCOUNTING

Requirement Gathering, Configuration and unit testing
In SAP, the enterprise structure refers to the organizational framework that represents the various elements and entities within an
organization. It is a fundamental concept in SAP as it forms the basis for configuring and managing different modules and processes.
The key components of the enterprise structure in SAP include:
Client:

 The highest level in SAP's organizational hierarchy.

 Represents a self-contained unit with its data, settings, and configurations.
 A client can be considered as an independent company or business entity within the SAP system.
Company Code:

 Represents a legal entity or an independent accounting unit within the organization.

 Each company code has its financial accounting data, balance sheet, profit, and loss statement.
 Transactions are posted at the company code level, and financial reports are generated based on company code data.

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Requirement Gathering Question to Ask:

How many locations are these legal entities located?
Business Reply:
Canada USA UK & Europe Middle East South Africa India Australia

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Fiscal Year:

 A fiscal year is a specific time period used for financial reporting and accounting purposes.
 It typically represents a 12-month period, but it can be customized based on the organization's requirements.
 The fiscal year variant defines the start date, end date, and length of each fiscal year.
Requirement Gathering Question to Ask:
Are they all using the same accounting calendar?
Describe your closing process?
How long does it take to close at year end?
Is the closing schedule consistent across all companies?
Do you use a period 13 at year end closing?
Business Reply:
Canada USA UK & Europe Middle East South Africa India Australia
1st April to 1st January to 1st April to 1st May to 1st April to 1st April to 1st July to
31st March 31st December 31st March 30st June 31st March 31st March 31st August
12 Periods 12 Periods 12 Periods 12 Periods 12 Periods 12 Periods 12 Periods

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General Ledger (G/L) Ledger:

 The General Ledger (G/L) ledger is the primary ledger in SAP that contains all financial transactions for a company code.
 It records postings related to general accounting tasks such as accounts receivable, accounts payable, asset accounting, and
cost center accounting etc.
 The G/L ledger is the central repository for financial data and is used for generating financial statements and reports.
Parallel Ledgers:

 SAP allows for the creation of parallel ledgers to meet different reporting and accounting requirements.
 Parallel ledgers can be used to maintain accounting records based on different accounting principles (e.g., local GAAP, IFRS)
or for reporting in different currencies (e.g., local currency, group currency, global currency).
 Each parallel ledger is linked to the same G/L accounts but may have different fiscal year variants, currency types, and
reporting structures.
Requirement Gathering Question to Ask:
How many currencies do you use and what are they?
What is your policy on changing currency rates?
Do you generate reports in multiple currencies?
Do you do translations monthly into foreign currencies?
What account values do you use for cumulative foreign currency gain or loss?
Business Reply:
Ledger Currency Canada USA UK & Europe South Africa India Australia

1 0L 1st Local Currency CAD USD GBP EUR INR AUD

Leading Ledger 2nd Hard Currency USD USD USD USD USD USD
3rd Group Currency INR INR INR INR INR INR
2 T1 - USGP 1st Local Currency CAD USD GBP EUR INR AUD
US GAAP Ledger 2nd Hard Currency USD USD USD USD USD USD
3rd Group Currency INR INR INR INR INR INR
3 T2 1st Local Currency CAD CAD GBP EUR INR AUD
Tax Reporting 2nd Hard Currency USD USD USD USD USD USD
Ledger 3rd Group Currency INR INR INR INR INR INR

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Field Status Variants in Master Data:

 Field Status Variants are commonly used in master data maintenance for G/L accounts, cost elements, cost centers, profit
centers, vendors, customers, and other master records.
 The field status variant determines which fields in SAP transactions are mandatory, optional, or suppressed based on
predefined settings.

Requirement Gathering Question to Ask: Not to Business (Consultant Question)?

Document Type:
Document Type is a key parameter used in various modules such as Financial Accounting (FI), Materials Management (MM), Sales
and Distribution (SD), and Controlling (CO) to differentiate between various types of business transactions and to control how these
transactions are processed within the system. Here are the key aspects of Document Types in SAP:
Purpose:

 Document Types are used to categorize and differentiate different types of business transactions or documents within SAP.
 Each Document Type is associated with specific processing rules, number ranges, and field status settings that determine
how transactions of that type are handled in the system.

Requirement Gathering Question to Ask: Not to Business (Consultant Question)?

Tolerance Group:

 Tolerance groups are used to specify the maximum permissible deviations or tolerances for financial transactions such as
invoice verification, payment postings, and expense reimbursements.
 They help organizations enforce control over financial processes by defining acceptable limits for variations in amounts,
quantities, prices, and currency conversions.

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Requirement Gathering Question to Ask: Not to Business (Consultant Question)?

Chart of Accounts:
In SAP, the Chart of Accounts (CoA) is a foundational element of the Financial Accounting (FI) module. It represents the structure and
organization of a company's general ledger accounts, providing a framework for recording, classifying, and summarizing financial
transactions. Here are key points about the Chart of Accounts in SAP:
A chart of accounts is a classification structure for the general ledger accounts you're using. Three types of charts of accounts exist:
Operational chart of accounts
The operational chart of accounts is your main chart of accounts and is assigned to the company code. This chart of accounts is used
to make postings in financial accounting.
Group chart of accounts
The group chart of accounts links one or more operational G/L account numbers to a group account number. This chart of accounts
is used in the consolidation process.
Country chart of accounts
This chart of accounts can be used on the country level to portray local requirements. This chart of accounts is optional and can be
used for only some countries. When the country chart of accounts is assigned to the company code, you can assign an alternative
account number in the master record of the operational general ledger account.
Requirement Gathering Question to Ask:
Do all companies use the same chart of accounts?
How often do you perform this consolidation?
What does your current chart of accounts look like (e.g., number of fields, size of each field)?
Describe the function served by each field in your chart of accounts.
What are the deficiencies in your current chart of accounts?
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Controlling Area:

 Represents an organizational unit in Controlling (CO) module responsible for cost accounting and internal reporting.
 Controlling areas are used for cost center accounting, profit center accounting, and other management accounting
processes.
 Each controlling area can be assigned to one or more company codes.
Requirement Gathering Question to Ask:
Will Group Level reporting be done in INR?
Business Reply – Yes in INR Currency for Consolidation Reporting

Profit Center:
Profit Centers are used to analyze and track the financial performance of individual segments or business units within an
organization.
They help in evaluating the profitability of products, services, regions, departments, or any other business segment.
Profit Centers facilitate internal reporting, cost allocation, and decision-making by providing insights into revenue, costs, and
profitability at a granular level.
Requirement Gathering Question to Ask:
How do you want to report profit and loss (e.g., by Business Area, product line)?
Business Reply: Yes, by Product Line

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Document Splitting:
• Document Splitting is used to split financial transactions into multiple line items based on various criteria such as profit
centers, cost centers, business areas, segments, or other dimensions.
• The primary purpose is to enable detailed reporting and analysis of financial data by different segments or business units
within the organization.

Requirement Gathering Question to Ask: Not to Business (Consultant Question)?

Organization Structure

Operating Concern

Controlling Area

Chart of Accounts

Canada USA UK & Europe Middle East South Africa India Australia

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S.No General Ledger – Implementation Transaction Tables Implementation

Codes for USA
Codes
Company

Configuration - General Ledger

1 Enterprise Structure

1.0 Define Company (Group) OX15 T880 TGBL - Tata Global

Beverages Limited

1.1 Edit, Copy, Delete, Check Company Code OX02 T881 TCPL - Tata
Consumer Products

1.2 Define Credit Control Area OB54 T014,T014T TCPL - TCPL Credit
Control Area

1.3 Define Business Area OX02 TGSB,TGSBT 1000: Canada

1010: USA
1020: UK & Europe
1030: Middle East
1040: South Africa
1050: India
1060: Australia

1.4 Define Segment FAGL_SEGM TC01: Tea

TC02: Coffee
TC03: Food
TC04: Liquid
Beverages
TC05: Out of Home

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1.5 Maintain Financial management OKBD FM01T TCPL Tata Consumer

Product Lim - USD

1.6 Assign Company Code to Company OX16 T001 TCPL ->TGBL

1.7 Assign company code to credit control area OB38 T001 TCPL->TCPL

1.8 Assign company code to financial management OF18 TOO1 TCPL->TCPL

area

2. Fiscal Year Variant

2.1 Maintain Fiscal Year Variant (Maintain Shortened OB29 T009,T009T K4 – Jan to Dec
Fisc. Year)

2.2 Assign Company Code to a Fiscal Year Variant OB37 T001,T882 TCPL – K4

2.3 Define Variants for Open Posting Periods OBBO T010O,T010P TCPL

2.4 Assign Variants to Company Code OBBP T001 TCPL->TCPL

2.5 Open and Close Posting Periods OB52 T001B TCPL

3. Ledger

3.1 Define Settings for Ledgers and Currency Types FINSC_LEDGER FINS_CUST_CONS_CHK_P 0L – Leading Ledger
FINS_CUST_CONS_CHK
T1 - US GAPP
T2 - IFRS

4. Field Status Variant

4.1 Field status variants OBC4 T001F,T001W TCPL

4.2 Assign Company Code to Field Status Variants OBC5 T001 TCPL->TCPL

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5. Document Type

5.1 Define Document Types OBA7 T003,T003T Standard

5.2 Define Document Types in a Ledger 2L & Z2

5.3 Define Document Number Ranges FBN1 -

6. Tolerance Group

6.1 Define Tolerance Groups for Employees OBA4 T043T TCPL

6.2 Define Tolerance Groups for G/L Account OBA0 T043S TCPL

6.3 Define Tolerances for Vendor/Customer OBA3 TO43GT TCPL

6.4 Define Posting keys OB41 Standard

6.5 MIRO - Tolerance OMR6 - PP (Optional)

7. Chart of Accounts

7.1 Edit Chart of Accounts List OB13 T004,T004T GCOA-TGBL, OCOA-

TCPL, CCOA-TCOA

7.2 Define Account Group OBD4 T077S,T077Z

7.3 Define Retained Earnings Account OB53 - X-300004

7.4 Assign Company Code to Chart of Accounts OB62 T001 TCPL->TCPL

8. Controlling

8.1 Maintain Controlling Area OKKP TKA00,TKVST TGBL

9. Profit Center

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9.1 Maintaining Controlling Area Setting

9.2 Define Profit Center Standard Hierarchy in
Controlling Area

9.3 Define Standard Hierarchy

9.4 Create Dummy Profit Center KE59

9.5 Activate Profit Center (LSMW) KE51

9.6 Assign Scenarios and Customer Fields to Ledgers FAGL_LEDGER _SCEN

10. Document Splitting

10.1 Define Document Splitting T8G17

10.2 Define Zero-Balance Clearing Account T8G30B

10.3 Define Document Splitting Characteristics for

General Ledger Accounting

*** Create New Transport Request for GL

Configuration

MASTER DATA CREATION

Creation of GL Account Centrally

1 Creation of Zero Balance GL Account FS00 SKAT, SKA1, SKB1

2 GL/L Creation through ( LSMW ) FS00

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TRANSACTION POSTINGS T-code Fiori App Table

GL Document Posting & Reports

1 General Entry Posting F-02/FB01 Post General Journal Entries ACDOCA

2 GL Account Posting – Enjoy Documents FB50 Manage Journal Entries

3 Change Document FB02 Manage Journal Entries

4 Display FB03 Manage Journal Entries

5 GL Line item Display FBL3N Display G/L Account Line

Items

6 Display Change Line Item FAGLL03 Display Line Items in General

Ledger

7 Balances FS10N Display G/L Account

Balances

Parking Document

1 Parking Document F-65 Park Journal Entries

2 Post Parking Document FBV0 Post Parked Journal Entries

Sample Document

1 Define Number Range for Sample Document (X2) FBN1

2 Sample Document F-01 Create Sample Journal

Entries

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3 To View or Change Sample Document FBM2 Change Sample Journal

Entries

4 Posting Sample Document F-02 Create G/L Account Postings

5 Delete Sample F.57 Delete Sample Journal

Entries

Recurring Document

1 Define No Ranges for Recurring Document (X1) FBN1

2 Create Recurring Doc FBD1 Enter Recurring Entry

3 Execute Recurring Doc F.14 Carry Out Recurring Entries

Account Assignment Model

1 Create Account Assignment Model FKMT Create Account Assignment

Models

2 Post document using AAM F-02 Create G/L Account Postings

Reversals

1 Individual Reversal FB08 Manage Journal Entries

2 Mass reversal F.80 Manage Journal Entries

3 Reversal of a Reversal Document FBR2 Manage Journal Entries

5 Accrual, Deferral Reversal F.81 Manage Journal Entries

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GENERAL LEDGER CONFIGURATION

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S.No Instructions FI-GL Configuration Screen shot

1.Enterprise Structure
AA Define Company (Group)
=>Click on New Entries
Application Path:
SPRO-> SAP Reference
IMG-> Enterprise
Structure=> Definition=> It will give the following window – Enter the details
Financial Accounting=>
Define company

Click on Execute

Enter the Details:

Company: TGBL
Company Name: Tata
Global Beverages Limited
Detailed Information:
Street: 1, Bishop Lefroy
Road, Pincode: 700020
City: Kolkata, West
Bengal
Country: IN
Language Key: EN Click on Save
Currency: INR (Group
Currency)

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AB Save Configuration in
New transport

Click on Create to
create new transport

AC Enter Short Description:

TGBL: RTR: Enterprise

Structure_04012024

Click on Save

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AD Click on Continue to Save

the configuration

Customization Transport
: S4HK902753

1.1 Edit, Copy, Delete, Check

Company Code
Application Path:
SPRO-> SAP Reference
IMG->Enterprise
Structure=> Definition=>
Financial Accounting=>
Edit, Copy, Delete, Check
Company Code

Click on Execute

Click by Selecting Edit

Company Code Data

Click on Click on New Entries

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It will give the following window – Enter the details

AA Enter the details:

Company Code: TCPL

Company Name: Tata
Consumer Products

Additional Details:
Street: 155 Chestnut
Ridge Rd
City: Montvale
State: New Jersey
Country: US
Language: EN

Click on Address:

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AB Enter the details as

shown in the screen shot

Tata Consumer Products –

USA | LinkedIn

Click on continue to Save

Go to main screen SPRO

1.2 Define Credit Control

Area Click on New Entries to enter the details
Application Path:

SPRO-> SAP Reference

IMG->Enterprise It will give the following window as below – Enter the details
Structure=> Definition=>
Financial Accounting=>
Define Credit Control
Area

Click on Execute

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Enter the below details:

Credit Control Area: TCPL
Currency: USD

Click on Save

Click Back

AA Enter description: TCPL

Credit Control Area

Click on Save
Data was Saved.

1.3 Define Business Area

Application Path: Click on New Entries in displayed window

SPRO-> SAP Reference

IMG->Enterprise
Structure=> Definition=>

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Financial Accounting=>
Define Business Area.

Click on Execute

Click on New Entries

Enter the details as
shown

Click on Save
Business Area
1000: Canada
1010: USA
1020: UK & Europe
1030: Middle East
1040: South Africa
1050: India
1060: Australia

1.4 Define Segment

Click on New Entries
Application Path:

SPRO-> SAP Reference

IMG->Enterprise
Structure=> Definition=>
Financial Accounting=> It will give the following window as below – Enter the details
Define Segment.

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Click on Execute

Click on New Entries

Enter the details as
shown
Click on Save
Segments
TC01: Tea
TC02: Coffee
TC03: Food
TC04: Liquid Beverages
TC05: Out of Home

1.5 Maintain FM Area

Click on New Entries
Application Path:

SPRO-> SAP Reference

IMG->Enterprise
Structure=> Definition=>
Financial Accounting=> It will give the following window as below – Enter the details
Maintain FM Area.
Click on Execute

Enter TCPL, Currency

USD, Click on Save

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1.6 Assign Company Code to

Company
Application Path:

SPRO-> SAP Reference

IMG->Enterprise
Structure=>Assignment=
>Financial Accounting=>
Assign company code to
company.

Click on Execute to
display the following
window
Enter TGBL to Company
code
Click on Save

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1.7 Assign company code to

credit control area
Application Path:

SPRO-> SAP Reference

IMG->Enterprise
Structure=>Assignment=
> Financial Accounting=>
Assign company code to
credit control area

Click on Execute to
display the following
window
Enter TGBL Credit
Control Area
Click on Save

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1.8 Assign company code to

financial management
area
Application Path:
SPRO=> SAP Reference
IMG=>Enterprise
Structure=>Assignment=
> Financial Accounting=>
Assign company code to
financial management
area
Click on Execute to
display the following
window
Enter TGBL Tata
Consumer Product Lim
Click on Save

2. Fiscal Year Variant

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2.1 Maintain Fiscal Year

Variant (Maintain
Shortened Fisc. Year)
Application Path:
SPRO->SAP Reference
IMG->Financial
Accounting=.Financial
Accounting Global
Settings=>Ledgers=>Fisc
al Year and Posting
Periods=>Maintain Fiscal
Year Variant Reporting Year for USA – Tata Consumer Product company reporting year - 1st January to 31st
December (Using Standard Fiscal Year K4 SAP Defined)
2.2 Assign Company Code to
a Fiscal Year Variant
Application Path:
SPRO->SAP Reference
IMG->Financial
Accounting=>Financial
Accounting Global
Settings=>Ledgers=>Fisc
al Year and Posting
Periods=> Assign
Company Code to a
Fiscal Year Variant
Enter K4 Fiscal Year

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Click on Save

2.3 Define Variants for Open

Click on New Entries
Posting Periods
Application Path:

SPRO->SAP Reference
IMG->Financial
Accounting=>Financial It will give the following window as below – Enter the details
Accounting Global
Settings=>Ledgers=>
Fiscal Year and Posting
Periods=> Posting
Periods=> Define
Variants for Open
Posting Periods

Click on Execute

Enter Variant – TCPL:

TCPL Posting Periods

Click on Save

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2.4 Assign Variants to

Company Code
Application Path:

SPRO->SAP Reference
IMG->Financial
Accounting=>Financial
Accounting Global
Settings=>Ledgers=>
Fiscal Year and Posting
Periods=> Posting
Periods=> Assign
Variants to Company
Code
Enter TCPL Variant, Click on Save
Click on Execute

2.5 Open and Close Posting

Periods
Application Path:

SPRO-> SAP Reference

IMG->Financial
Accounting=>Financial Click on New Entries
Accounting Global
Settings=>Ledgers=>
Fiscal Year and Posting
Periods=> Posting

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Periods=> Open and It will give the following window as below – Enter the details
Close Posting Periods
Enter Posting Period:
TCPL

Click on Continue
Enter the details as shown
in screen shot

Click on Save

3. Ledger
3.1 Define Settings for
Ledgers and Currency
Types
Application Path:

SPRO-> SAP Reference

IMG->Financial
Accounting=> Financial
Accounting Global
Settings=> Ledger=>
Define Settings for
Ledgers and Currency
Types

Click on Execute

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Click on Continue on the Click on Currency Type – Validate Currency Type as shown in screen shot
Popup

AA Click on Global Currency

Conversion Settings

Validate the config as per

screen shot

AB Click on Currency
Click on New Entries
Conversion setting for
Company Code

Click on New Entries

It will give the following window – Enter the details
Enter the details as
shown in the screen shot

Click on Enter from the

Key board

Click on Save

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AC Click on Ledger
Click on New Entries
Click on New Entries

It will give the following window – Enter the details

Enter Ledger T1 & T2 as

shown in the screen shot
Click on Save
T1 – US GAAP Ledger
T2 – IFRS Ledger

Click on Save

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AD Select the Ledger T1

Double click on Company

Code settings for Ledger

AE Click on New Entries

It will give the following window – Enter the details

Enter the details as

shown in the screen shot

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Click on Enter

Click on Continue

Click on Save

AF Select the Ledger T2

Double click on Company

Code settings for Ledger

AG Click on New Entries

It will give the following window – Enter the details

Enter the details as

shown in the screen shot

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Click on Enter

Click on Continue

Click on Save

AH Select Ledger T1

Double click on
Accounting Principles for
Ledger

Enter Ledger – T1
Company Code – TCPL

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Click on Continue

AI Click on New Entries

Click on New Entries

It will give the following window – Enter the details

Enter Accounting
Principle: USAP – US
GAAP

Click on Continue

Click on Save

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AJ Select Ledger T2

Double click on
Accounting Principles for
Ledger

AK Enter Ledger – T2
Company Code – TCPL

Click on Continue

AL Click on New Entries

Click on New Entries

It will give the following window – Enter the details

Enter Accounting
Principle: IFRS –
International Financial
Reporting Standards

Click on Save
4. Field Status Variant

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4.1 Field status variants

Application Path:
SPRO-> SAP Reference
IMG->Financial
Accounting=> Financial
Accounting Global
Settings=>Ledger=>
Fields=> Define Field
Status Variants

Click on Execute
Select by clicking Standard
FSV - 0010

Click on Copy

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AA Enter Field Status: TGBL

Click on Enter from Key

Board

AB Click on Copy All

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AC
Click on Continue

Click on Save

4.2 Assign Company Code to

Field Status Variants
Application Path
SPRO-> SAP Reference
IMG->Financial
Accounting=>Financial
Accounting Global
Settings=> Ledger=>
Fields=> Assign Company
Code to Field Status
Variants

Click on Execute

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Enter Fiels Status: TGBL

Click on Save

5. Document Type
5.1 Define Document Types
for Entry View
Application Path
SPRO-> SAP Reference
IMG->Financial
Accounting=> Financial
Accounting Global
Settings=> Document=>
Define Document Types

Click onExecute
Validate

Sap has provided all standard document types. No new Documents Types required
5.2 Define Document Types
for Entry View in a
Ledger
Application Path

Click on New Entries

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SPRO-> SAP Reference

IMG->Financial
Accounting=> Financial
Accounting Global It will give the following window – Enter the details
Settings=> Document=>
Define Document Types in
a Ledger

Click on Execute
Ledger – T1

Click on Continue

Click on New Entries

Enter the Number Range

for T1 parallel ledger as
shown in the Screenshot

Click on Save Note: Detailed number range were available below for more understanding

AA Ledger – T2

Click on Continue
Enter the Number Range
for parallel ledger as Click on New Entries
shown in the Screen shot

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Click on New Entries

Enter the Number Range

for T2 parallel ledger as It will give the following window – Enter the details
shown in the Screenshot

Click on Save

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5.3 Define Document

Number Ranges for Entry
View
Application Path
SPRO-> SAP Reference
IMG->Financial
Accounting=> Financial
Accounting Global
Settings=> Document=>
Document Number
Ranges=> Define
Document Number
Ranges

Click on
Enter the Number range
Click on Save
for the DT by clicking
Note: Detailed number range are provided below for more understanding
6. Tolerance Group
6.1 Define Tolerance Groups Click on New Entries
for Employees
Application Path
SPRO-> SAP Reference
It will give the following window – Enter the details
IMG-> Financial
Accounting=> General
Ledger Accounting=>
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Business Transactions=>
Open Item Clearing=>
Clearing Differences=>
Define Tolerance Groups
for Employees

Click on Execute
Enter the details as shown

Click on Enter from Key

board

Click on Save

6.2 Define Tolerance Groups

for G/L Account Click on New Entries
Application Path
SPRO-> SAP Reference
IMG-> Financial
Accounting=> General It will give the following window – Enter the details
Ledger Accounting=>
Business Transactions=>
Open Item Clearing=>
Clearing Differences=>
Define Tolerance Groups
for G/L Account

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Click on Execute

Enter the details as

shown
Company Code: TCPL

Company Code: TCPL

Click on Save

6.3 Define Tolerances for

Vendor/Customer Click on New Entries
Application Path
SPRO-> SAP Reference
IMG->Financial
Accounting=>Accounts It will give the following window – Enter the details
Receivable and Accounts
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Payable=>Business
Transactions=>Outgoing
Payments=>Manual
Outgoing
Payments=>Define
Tolerances (Suppliers)

Click on Execute

Enter the details as

shown in the screen shot

Click on Save

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6.4 Define Posting keys

Application Path
SPRO-> SAP Reference
IMG->Financial
Accounting=>Financial
Accounting Global
Settings=>Document=>D
efine Posting Keys

Click on Execute
SAP Provided Standard
Posting Keys. No new
Posting Keys Required

7. Chart of Accounts
7.1 Edit Chart of Accounts
Click on New Entries
List
Application Path
SPRO-> SAP Reference
IMG->Financial It will give the following window – Enter the details
Accounting=>General
Ledger Accounting=> TGBL – Group Chart of Accounts
Master Data=> G/L
Accounts=>Preparations
=>Edit Chart of Accounts
List

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Click on Execute
Click on New Entries
Enter the details as
shown in the screen shot
COA : TGBL Group Chart
of Account

Click on Save Operating Chart of Accounts

Click on New Entries

Enter the details as

shown in the screen shot

COA : TCPL Operating

Chart of Account

Click on Save
Click on New Entries Country Specific Chart of Accounts

Enter the details as

shown in the screen shot

COA : TCOA Country

Chart of Account

Click on Save

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7.2 Define Account Group

Application Path
SPRO-> SAP Reference Account Group for GCOA – Group Chart of account
IMG-> Financial
Accounting=>General
Ledger
Accounting=>Master
Data=>G/L
Accounts=>Preparations
=> Define Account Group

Click on Execute
Account Group for OCOA – Operating Chart of account
Click on New Entries
Enter the details a shown
in screenshot

Account Group for Group

COA: TGBL

Account Group for CCOA – Country Chart of account

Account Group for
Operating COA: TCPL

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Account Group for

Country COA: TCPL

Click on Save

7.3 Define Retained Earnings

Account
Application Path
SPRO-> SAP Reference
IMG-> Financial
Accounting=>General
Ledger Accounting=>
Master Data=>G/L
Accounts=>Preparations
=> Define Retained
Earnings Account

Click on Execute
Enter COA: TGBL

Click on Continue

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Enter P&L : X
Account: 3000004

Click on Save

**Replicate the same

steps for TCPL and TCOA

Click on Save

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7.4 Assign Company Code to

Chart of Accounts
Application Path
SPRO-> SAP Reference
IMG-> Financial
Accounting=>General
Ledger Accounting=>
Master Data=>G/L
Accounts=>Preparations=>
Assign Company Code to
Chart of Accounts

Click on Execute

Enter COA – TCPL

Alternative CAO – TCOA

Click on Save

8. Controlling

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8.1 Maintain Controlling

Area
Application Path
SPRO-> SAP Reference
IMG-> Controlling=>
General Controlling=>
Organization=> Maintain
Controlling Area
Double click on Maintain
Controlling Area

AA Click on New Entries Click on New Entries

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Enter the details as

shown in the screen shot

Click on Enter

AB Click on Yes

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AC Select Assignment of
Company Codes

AD Click on New Entries

Enter Company Code:

TCPL

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AE Click on Activation
Components

AF Enter the details as

shown in the screen shot

Click on Save

9. Profit Center

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9.1 Maintain Controlling

Area Settings

Application Path:

SPRO->SAP Reference
IMG->Enterprise
Controlling=> Profit
Center Accounting=>
Basic Settings=>
Maintain Controlling
Area Settings

Enter the details as

shown in the screen shot

Click on Save

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9.2 Define Profit Center

Standard Hierarchy in
Controlling Area
Application Path
SPRO-> SAP Eassy
Access-> Accounting=>
Controlling=> Profit
Center Accounting=>
Master Data=> Standard
Hierarchy
Click on KCHI – Create
Enter the details as
shown in the screen shot
Click on Create

AA Enter the details as

shown in the screen shot
Click on Lower Level
Enter Profit center
hierarchy
For same level click on
Same level

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9.4 Create Dummy Profit

Center
Application Path
SPRO-> SAP Reference
IMG->Controlling=>Profit
Center Accounting=>
Basic Settings=>Master
Data=>Profit Center

Click on Execute

Dummy Profit Center:

TGBL_Dummy
Click on Basic Data

Enter the details as

shown in the screen shot

Click on Save

10. Document Splitting

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10.1 Define Document

Splitting
Application Path
SPRO-> SAP Reference
IMG-> Financial Click on New Entries
Accounting=> General
Ledger Accounting=>
Enter details as shown
Business Transactions=>
Document Splitting=>
Classify G/L Accounts for
Document Splitting
Click on Execute
Enter COA: TGBL
Click on Continue
Click on New Entries

For more details please follow Notes at the bottom

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Reperate the same steps

for COA: TCPL

Click on Execute
Enter COA: TCPL
Click on Continue
Click on New Entries

Update the details as shown in the screen shot

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Reperate the same steps

for COA: TCOA

Click on Execute
Enter COA: TCOA
Click on Continue
Click on New Entries

10.2 Define Zero-Balance

Clearing Account
Application Path
SPRO-> SAP Reference
IMG-> Financial
Accounting=> General
Ledger Accounting=>
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Business Transactions=>
Document Splitting=>
Define Zero-Balance
Clearing Account
Click on Execute
Select Account Key 000
Click on Accounts
Enter COA – TGBL
Enter Account 999999
Click on Save

Repeate the same steps

Click on Execute
Select Account Key 000
Click on Accounts
Enter COA – TCPL
Enter Account 999999
Click on Save

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Repeate the same steps

Click on Execute
Select Account Key 000
Click on Accounts
Enter COA – TCOA
Enter Account 999999
Click on Save

10.3 Define Document

Splitting Characteristics
for General Ledger
Accounting

Application Path
SPRO-> SAP Reference
IMG-> Financial
Accounting=> General
Ledger Accounting=>
Business Transactions=>
Document Splitting=>
Define Document
Splitting Characteristics
for General Ledger
Accounting

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Click on Execute
Activate Profit center “
Mandatory field
Click on Save

***Include all the above Objects/Configuration in Same transport

MASTER DATA CREATION – Configuration is based on group-level reporting, hence the creation of GL will be different compared
to the standard.
Creation of GL Account Centrally
1 Transaction Code FSP0
Click on Create to create
Group GL account

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2 Enter GL Account – 241000

Chart of Account: TGBL
Click on Continue

3 Enter the details as shown

in the screen shot

Click on Save

Group GL Account Created

4 Create GL Account -
Operating Chart of
accounts

Enter the details as shown

in screen shot
Click on Continue

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5 Enter the details as shown

in the screen shot

Operating Chart of
accounts created

6 Country Specific Chart of

accounts

Enter the details as shown

in the screen shot

Click on Continue

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7 Enter the details as shown

in the screen shot

Click on Save

8 Transaction Code – FSS0

Enter the details as shown

in the screen shot

Click on Continue

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9 Enter the details as shown

in the screen shot

10 Click on Create bank

interest

Enter the details as shown

in the screen shot

Click on Save

TRANSACTION POSTINGS – Will share a New Document with Testing and Publish shortly

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SAP NOTES Extracted from Demo Client for decent understanding of Customization
Define company
In this step you can create companies. The company is an organizational unit in accounting that allows you to organize your enterprise to meet certain
legal requirements in a country/region.

You store basic data for each company in company definition. You only specify particular functions when you customize in Financial Accounting.
Company G0000 is preset in all dependent tables.

In the SAP system, consolidation functions in Financial Accounting are based on companies. A company can contain one or more company codes.

When you create a company you should bear in mind the following points relating to group accounting:

 If your organization uses several clients, the companies which only appear as group-internal business partners, and are not operational in each
system, must be maintained in each client. This is a precondition for the account assignment of a group-internal trading partner.

 Companies must be cataloged in a list of company IDs that is consistent across the group. The parent company usually provides this list of
company IDs.

 It is also acceptable to designate legally dependent branches 'companies' and join them together as a legal unit by consolidation.

Recommendation

It is recommended that you keep the preset company ID G00000 if you only require one company. In this way you reduce the number of tables that you
need to adjust.

Activities

Create your companies.

Further notes

All company codes for a company must work with the same operational chart of accounts and fiscal year. The currencies used can be different.

Edit, Copy, Delete, Check Company Code

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In this process step, you create your company codes. The company code is an organizational unit used in accounting. It is used to structure the
business from a financial accounting perspective.

We recommend that you copy a company code from an existing company code. This has the advantage that you also copy the existing company code-
specific parameters. If required, you can then change certain data in the relevant application. This is much less time-consuming than creating a new
company code. For more details about copying a company code, see "Recommendations".

If you do not wish to copy an existing company code, you can create a new company code and make all the settings yourself. You define your company
codes by specifying the following information:

 Company Code Key

You can select a four-character alpha-numeric key as the company code key. This key identifies the company code. It must be entered when
posting business transactions or creating company code-specific master data, for example.

 Company code name

 Address data

The address data is necessary for correspondence and is printed on reports, such as the advance return for tax on sales/purchases.

 Country-/region currency

Your accounts must be managed in the currency of the country/region. This currency is also known as the local currency or the company code
currency. Amounts that are posted in foreign currency are translated into local currency.

 Country-/region key

You use the country-/region key to specify which country/region is to be regarded as domestic. All other countries/regions are interpreted by the
system as abroad. This is significant for business and payment transactions because different forms are used for foreign payment transactions.
This setting also enables you to use different address formatting for foreign correspondence.

 Language key

The system uses the language key to determine texts in the language of the country/region automatically. This is necessary when issuing checks,
for example.

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You do not specify the functional characteristic of the company code until configuring the relevant application.

You can set up several company codes in a client to manage the accounts of independent organizations simultaneously. At least one company code
must be set up in each client.

To take full advantage of SAP system integration, you must link company codes to the organizational units of other applications. For example, if you
specify a Funds Management account assignment (such as a cost center or internal order) when creating a document in Financial Accounting, the
system must determine a controlling area so that it can transfer the data to Controlling. You must specify how the corresponding controlling area is to be
determined.

The system derives the controlling area from the company code if you assign it directly to a company code. You can also assign several company codes
to one controlling area.

Standard settings

Company code 0001 has already been created in clients 000 and 001 for the country DE (Germany). All country-specific information ("parameters") is
preset in this company code, such as the payment methods, tax calculation procedures, and chart of accounts typical for this country.

If you want to create a company code for the USA and its legal requirements, you must first of all run the country/region installation program in client 001.
The country/region of company code 0001 is then set to "US" and all country-/region-specific parameters related to it are set to the USA. For more
information, see the Set Up Clients activity under "Basic Functions" in the Customizing menu.

Recommendation

Keep the preset company code number 0001 if you only require one company code. This keeps the number of tables you need to set up to a minimum.

You can copy a company code by using a special Customizing function. Company code-specific specifications are copied to your new company code. The
target company code does not need to be defined. This occurs automatically when the company codes are created.

SAP recommends the following procedure when creating company codes:

1. Create the company code by using the "Copy Company Code” function.
2. Enter your special company code data by using the "Edit Company Code Data” function.

You can also use the "Edit Company Code Data" function to create a company code. However, in this instance, the "global data" of the company code is
not copied. If you create a company code by using the "Copy" function, most of the "global data" is also copied.

Further notes

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Create a company code according to tax law, commercial law, and other financial accounting criteria. As a rule, a company code in the SAP system
represents a legally independent company. The company code can also represent a legally dependent operating unit based abroad if there are external
reporting requirements for this operating unit, which can also be in the relevant currency of the country/region.

For segment reporting according to Anglo-American accounting practices, you need to represent the areas in which the company has significant dealings.
This reporting data can be generated entirely on the basis of company codes.

For processing company codes, there are extended functions that you can access with the function call "administer" or "Copy, delete, check company
code". The entry in the company code table is processed in these functions as well as all dependent Customizing and system tables in which the plant is a
key.

For more information about the extended functions, see Copy/Delete/Check/Process Project IMG.

In addition to these functions, there is also the "Replace" function. Use this function if you want to change a company code key. This is only possible if no
postings have been made in the company code to be replaced. You should therefore only use this function for newly-created company codes.

Activities

1. Create your company codes. Create your company codes based on the reference (company code 0001) delivered with the SAP standard
system. SAP recommends you use the function "Copy Company Code" to create your company codes.
2. Go to the activity "Edit Company Code Data" and change the name, description, address, and currency. Maintain the company code data that
is not to be copied.
3. Use the project IMG view to postprocess data that is changed automatically. You can also carry out postprocessing at a later stage since the
system retains the generated project view.

Define Credit Control Area

In this step, you define your credit control areas. The credit control area is an organizational unit that specifies and checks a credit limit for customers.

Note

A credit control area can include one or more company codes. It is not possible to assign a company code to more than one control control area. Within
a credit control area, the credit limits must be specified in the same currency.

Standard settings

The credit control area 0001 is defined in the SAP standard system.

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Activities

Define your credit control areas.

Define Business Area

Use

In this section you create business areas. A business area is an organizational unit within accounting that represents a separate area of operations or
responsibilities in a business organization.

When defining a business area, you enter a four-character alphanumeric key and the name of the business area.

In a client, you can set up several business areas to which the system can assign the postings made in all company codes defined in this client. To
ensure consistency in document entry, you should give business areas the same name in all company codes.

You make all other specifications for your business areas in the Financial Accounting Implementation Guide.

Activities

If necessary, create business areas.

Further notes

For more information about business areas, see the SAP Library under Financial Accounting -> General Ledger Accounting -> Business Area.

Define Segment
Short Text

Segments are used for segment reporting. If you define your profit centers, you can enter an associated segment in the master record of a profit center.
The segment is then derived from the assigned profit center during posting.

Use

In this Customizing activity, you define your segments.

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If you then define your profit centers, you can enter an associated segment in the master record of a profit center. The segment is then derived from the
assigned profit center during posting.

If you want to derive the segment by other criteria, you can implement a Business Add-In (BAdI). To do this, go to Customizing for Financial Accounting
and choose Derive Segment.

Maintain FM Area
In this step, you create your financial management (FM) areas. The financial management area is an organizational unit within accounting which
structures the business organization from the perspective of Cash Budget Management and Funds Management.

You define the functional characteristics of FM areas separately for both Cash Budget Management and Funds Management in the implementation guide
for each of these areas.

To be able to take advantage of the high degree of integration in the SAP system, you must link the FM areas with organization units from other
applications. For example: if you assign a Financial Accounting document to a Funds Management object (such as a commitment item or funds center),
the system has to determine an FM area, so that it can record the data in Funds Management. For this reason, you must specify how the appropriate FM
area is to be determined.

The FM area is taken from the company code when you assign a company code to an FM area. More than one company code can be assigned to an
FM area.

You make this assignment in the second step by assigning the company code (relevant to Cash Budget Management or Funds Management) to an FM
area. For more information on this, see step "Assign company code to FM area".

Standard settings

FM area 0001 has already been installed in the standard SAP system.

Activities

Create your FM areas under a four-character key and define a name and currency for each FM area you create.

The FM area currency need not be the same as the currency in any of the assigned company code.

In the event that you later want to change the FM area currency, bear in mind that you cannot do this after you have posted any actual data for this
FM area in the front-end systems (Financial Accounting, Materials Management).

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You maintain the other FM area parameters, such as the fiscal year variant, later.

Assign company code to company

Short Text

To enable consolidation, ensure that each company code is assigned to a company.

Use

In this step, you assign the company codes that you want to include in the group accounting to a company.

Prerequisites

You must have first completed the steps "Create Company Code" and "Create Company".

Activities

Assign the company codes to a company.

Assign company code to credit control area

Short Text

In this step, you assign company codesto a credit control area.

Prerequisites

You must first have performed the steps "Create company codes" and "Create credit control area".

Standard settings

Examples of company codes assigned to credit control areas have been defined in the SAP standard system.

Activities

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1. Assign each of the company codes to a credit control area as you require.
2. Ensure that the appropriate credit limit is specified for the credit control areas and/or for the individual customers. You determine the credit
limits via the Accounts Receivable area menu.

Assign company code to financial management area

In this IMG activity, you assign each company code which is relevant to Cash Budget Management or Funds Management to a FM area.

In the case of cross-company-code Cash Budget Management/Funds Management, you can combine several company codes in a single FM area. You
must assign all the company codes in question to the same FM area.

Prerequisites

You have carried out the following activities: 'Create company codes' and 'Create FM area'.

Activities

Assign the relevant company codes to FM areas.

Further notes

You can only change the assignment if:

 Neither Funds Management nor Cash Budget Management is active

 No actual data has been posted yet

 No commitment items have yet been posted in any of the G/L accounts in the company code in question.

Maintain Fiscal Year Variant

Short Text

Check the definition of your fiscal year variant.

A fiscal year variant has the following properties:

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 How many posting periods a fiscal year has.

 How many special periods you need.

 How the system determines the posting periods when posting.

When defining your fiscal year, you have the following options:

o Your fiscal year is the same as the calendar year

In this case, you just need to select the Calendar Year field.

o Your fiscal year differs from the calendar year and is not year-related

In this case, you first enter the number of your posting periods in the field Number of Posting Periods. To define your posting periods,
select your fiscal variant and choose Periods on the navigation screen. Enter the month and day of the period end and the period here.

o Your fiscal year differs from the calendar year and is year-related

In the field Number of Posting Periods, enter the number of your posting periods and select the field Year-Specific. To define your
posting periods, select your fiscal year variant and choose Periods on the navigation screen. You are asked the calendar year for which
your year-dependent fiscal year variant applies. You then specify the month and day of the period end and the period for each of your
posting periods.

You can also define descriptions for the periods of a year-independent fiscal year variant. To do this, select your fiscal year variant and choose Period
Texts on the navigation screen. You can enter a three-character abbreviation (Jan, Feb, Mar...) and a 20-character long text (January, February, March).

Default Settings

The following fiscal year variants are created in the standard system:

 Variants for which the fiscal year corresponds to the calendar year with an additional one, two, three, and four special periods

 Variants for shortened fiscal years. Read the section Defining Shortened Fiscal Years.

 Variants for non-calendar fiscal years:

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o April to March with four special periods

o July to June with four special periods

o October to September with four special periods

 Variant on a weekly basis. You can only use this variant for the Special Purpose Ledger (FI-SL) application component.

Activities

1. Check the standard fiscal year variants.

2. If necessary, change the existing variants or create your own variants.

Defining Shortened Fiscal Years

A fiscal year that contains less than twelve months and for which a year-end closing is to be created is called a shortened fiscal year. The definition of a
shortened fiscal year is always year-dependent, since this fiscal year represents a year-related exception. When defining a fiscal year variant, you must
always define a complete calendar year. The year-related fiscal year variant therefore contains not only the periods of the shortened fiscal year, but also
other periods of the previous or next fiscal year.

There are two ways of defining shortened fiscal years:

 If you only use the application component Financial Accounting (FI) without Asset Accounting (FI-AA), each fiscal year can start with any
period.

Example
If your shortened fiscal year ranges from January to September, you can assign the periods 004 to 012. You assign the periods 001 to 003 of the
new fiscal year to the months October to December.
For the fiscal year variant, you specify the number of periods (12 periods in the example above).

Note
Note that the last period of a fiscal year must correspond to the number of periods. Therefore, if you want to define twelve periods, the last period
of a fiscal year must be 12.

 If you also use the application component Asset Accounting (FI-AA) or another application component, such as Materials Management
(MM) or Controlling (CO), each fiscal year must start with period 001 so that the depreciation calculation in Asset Accounting runs correctly.

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For a fiscal year variant, enter the required periods and also the number of periods for the shortened fiscal year. Each fiscal year of the fiscal year
variant can therefore start with period 001.
Example
If you define a fiscal year with twelve periods, it can contain a shortened fiscal year with nine periods (from period 001 to 009). The remaining
calendar year then forms the first three periods of the new fiscal year (periods 001 to 003).
For information on other special features when using Asset Accounting, see the documentation on Asset Accounting.

Note

You define your shortened fiscal year and the following normal fiscal years under the same fiscal year variant. Note that it must be possible generally to
post to a prior period to previous fiscal years.

As long as you are still posting to or before the shortened fiscal year, or transferring legacy data from this time, you must retain the year-dependent fiscal
year variant. As soon as you convert the fiscal year variant from year-dependent to year-independent, the year-dependent definitions are deleted.

Caution

The fiscal year variant is used in several application components of the SAP system, for example, FI, FI-AA, CO, SD, MM, HR. In some application
components, the calendar-year-dependent definition of fiscal periods and years is still required even if the shortened fiscal year is in the past. If a
shortened fiscal year exists in your system, this shortened fiscal year must always be marked as Year-Specific. You must not change this setting, even if
the shortened fiscal year is in the past.

Default Settings

Two variants for shortened fiscal years are delivered with the standard system: variant R1 for a shortened fiscal year in Financial Accounting and variant
AM for a shortened fiscal year if Asset Accounting is used.

Activities

1. If you need to define a shortened fiscal year, clarify which of the above options you use to define the year.
2. Define your shortened fiscal year.
To define the shortened fiscal year for Asset Accounting, choose Navigation -> Shortened Fiscal Year.

Assign Company Code to a Fiscal Year Variant

For every company code, you must specify which fiscal year variant is to be used.

Requirements

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You have defined the relevant fiscal year variant. The variant does not contain more than 16 periods. For more information, see Maintain Fiscal Year
Variant.

Standard settings

The standard company code is assigned to the fiscal year variant that corresponds to the calendar year and uses four additional special periods.

Activities

Assign a fiscal year variant to each company code.

Define Variants for Open Posting Periods

Short Text

Maintain the variants for open posting periods.

A posting period variant must be assigned to each company code since the opening and closing of posting periods takes place for each posting period
variant.

Standard settings

In the standard setting, a separate variant for posting periods is defined for every company code. The name of this variant is identical to the company
code name. Every company code is assigned to this variant of the same name. Thus, nothing has changed in the system yet: Every company code has its
own variant. If you want to and can continue working on this basis (for example, if you manage with only a few company codes), you do not have to make
any changes in the configuration.

If however, you want to use identical variants in several company codes, you must change the default settings as described in the "Activities" section.

Activities

1. Change the name in one of the variants.

2. Allocate all company codes, for which you want to use identical variants for open posting periods, to this variant.
For detailed information on this, see the chapter "Allocate company code to variant".
3. Delete the variants no longer required.

Assign Variants to Company Code

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In this activity, you make the specification that is necessary to be able to work in several company codes with the same variant for open posting periods.
For this reason, you assign the same variant key to the company codes you want to group together.

Activities

Assign the same variant to the corresponding company codes.

Open and Close Posting Periods

Use

In this Customizing activity, you can specify for each variant which posting periods are open for posting. For this, you can choose between period intervals
1 to 3.

You can use period intervals 1 and 2 for all normal posting processes in regular and special periods.

For period interval 1, you can enter a group of authorized users. This means that, for month-end or year-end closing, for example, you can open posting
periods for specific users only. You make the necessary authorization settings in the optional authorization object Accounting Document: Authorizations
for posting periods (F_BKPF_BUP).
We recommend using period interval 1 for special periods because authorizations can only be managed here.

Period interval 3 is used for postings from Controlling (CO) to Financial Accounting (FI).

 If you do not make an entry for period interval 3, the check on these postings is made from Controlling against period intervals 1 and 2.

 If you make an entry for period interval 3, the check on these postings is only made against period interval 3.

For each interval, you specify the lower and upper limits of the posting period as well as the fiscal year.

For each posting period that should be open, you need to create a minimum entry. You enter a + in column K, while the From Account and To Account
columns must not contain entries. When you enter the posting date in the document header, the system uses the minimum entry to check whether the
postings can be made to the posting period. You can only use account type + for period interval 3.

To open a posting period just for postings to specific accounts, for example, you can additionally differentiate the period intervals by account interval.
Enter the account type and the corresponding G/L account numbers. For accounts and subledgers, specify the account type and the reconciliation
account.

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You close a period by defining the period interval so that it no longer includes the periods to be closed.

Activities

Specify the periods permitted for posting:

1. Create a minimum entry for all posting periods that you want to be open (account type +).
2. If you want to restrict the periods further for specific accounts, complete the entries for account types or account areas.
3. If you want to limit user access, enter an authorization group for each time period 1.

Define Settings for Ledgers and Currency Types

Use

In this Customizing activity, you edit the currency types and currency conversion settings that you use in Accounting. Furthermore, you define the
corresponding ledger settings and assign accounting principles for ledgers and company codes.

Currency Types

To supplement the standard SAP currency types (document currency 00, company code currency 10, controlling area currency 20, group currency 30,
etc.), you can also create your own currency types.

Ledgers

Only one ledger can be designated as the leading ledger.

There are two types of ledger:

 Standard Ledger

A standard ledger contains a full set of journal entries for all business transactions.

 Extension Ledger

An extension ledger is assigned to a standard ledger and inherits all journal entries of the standard ledger for reporting. The underlying ledger
must be a standard ledger. Postings made explicitly to an extension ledger are visible in that extension ledger but not in the underlying standard

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ledger. This concept can be used to avoid duplication of journal entries if many business transactions are valid for both ledgers and only a few
adjustments are required in the extension ledger.

Prerequisites

 Company codes are created and configured with currency, fiscal year variant, and open period variant.

 Controlling areas are configured with currency type and fiscal year variant.

 Company codes are assigned to controlling areas.

 Upgrades: Migration of ledger Customizing is completed.

Standard settings

 The standard currency types are listed in the Currency Types view.

Note: If you are using transfer prices, the following additional currency types are available for the different valuation views: legal valuation
(last digit -0), group valuation (last digit -1), and profit center valuation (last digit -2).

 Ledger 0L is the leading ledger.

 All companies are assigned to the leading ledger.

Activities

Define Currency Types and Currency and Conversion Settings

Currency Types view:

Check your currency settings and create additional currency types if required. Your own currency types can be made up of a combination of letters and
digits or of letters only, but must begin with the letter Y or Z, for example Y1, Y2, ZA, or ZB.

For each currency type you add, decide whether you want the corresponding currency conversion settings to be valid globally for all company codes or
you want to define the currency conversion settings on company code-level.

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You can’t make any changes to the SAP standard currency types Document Currency (00) and Company Code Currency (10). For the other standard
currency types, you can define whether the corresponding currency conversion settings are valid globally or on company code-level.

Note: If you are using transfer prices, create the required number of currency types (depending on the valuation methods you need) and
select the valuation view you need (legal, group, or profit center valuation). For the currency types with group or profit center valuation,
you need to enter the base currency type, meaning the currency type with the legal valuation view on which the transfer prices valuation
will be based. For each base currency type there can be only one currency type using group valuation and one using profit center
valuation. The base currency type defines the currency key and how the currency type settings are handled (globally or on company
code-level).

Depending on whether you selected Global or Company Code-Specific settings to be made for your currency types, proceed with one of the two views
below for the currency conversion settings:

o Global Currency Conversion Settings view

For your own currency types, enter the currency into which the conversion is to be made (Currency field), and the currency from which
currency conversion is to be made (Source Currency field). In addition, enter the exchange rate type and the date on which the
translation is to be carried out (document date, posting date, or translation date). You can also decide whether the currency conversion
shall be done in real-time. If you don’t select the Real-time Conversion checkbox, you can do this at period-end closing using the foreign
currency remeasurement run.

o Currency Conversion Settings for Company Codes view

For each combination of company code and your own currency types, make your settings as described above.

Caution

If you add new currency types to a combination of company code and ledger already in productive use, your system configuration will become
inconsistent. Use transaction "Adaption of transactional data for new currency types" (FINS_ADAPT_CTP) in order to update the new currency key to
existing transaction data. For more information, see Adaption of Transactional Data for New Currency Types.

In test systems you can add new currency types by first deleting all test data for all company codes of the same controlling area.

Define Ledger Settings

Note

If you are setting up parallel accounting, SAP strongly recommends that you use separate ledgers for each accounting principle. For example, one ledger
with US GAAP assigned to it and another one with a local accounting principle. In this case, you only need to make the corresponding settings in the
Ledger view and in the Company Code Settings for the Ledger view.

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The Accounting Principles for Ledger and Company Code view is only relevant if you intend to use one ledger with more than one accounting principle
assigned to it (not recommended). In this case, you first need to choose the Parallel Accounting Using G/L Accounts option as described below.

Ledger view:

Create additional ledgers if required. You can create different currency settings for each ledger.

If you create an extension ledger, be sure to specify the ledger type and the underlying standard ledger for this ledger.

Company Code Settings for the Ledger view:

Configure company code assignments to ledgers. Assign the currency types needed for each ledger. If you are using transfer prices, there is a
dependency between currency types in the company code settings for a ledger - and CO versions.

Configure the fiscal year variant and open period variant for non-leading ledgers. Note that you can’t change the currency and fiscal year variant settings
for ledgers/company codes for which postings already exist. Set the Parallel Accounting Using G/L Accounts indicator if you want to use several
accounting principles within one ledger.

Tip: For each ledger, you can display a detail screen by double-clicking the relevant row.
If you expand the details, you can see whether the general ledger has calculated a currency that is not kept in a particular subledger by
approximation. If slight deviations are possible for a particular area, this is indicated by the checkbox “Deviation in <area>”.

Accounting Principles for Ledger and Company Code view:

Caution

Only use this view if you implement parallel accounting using additional accounts, that is, within one ledger instead of using separate ledgers.

For each combination of ledger and company code, assign the relevant accounting principle. Make sure, however, that you don’t make any changes to
currency types in production systems.

Prerequisite

If you use a parallel accounting with G/L accounts and need to assign more than one accounting principle to the ledger, make sure that, in the Company
Code Settings for the Ledger view, you have selected the Parallel Accounting Using G/L Accounts indicator.

For more information, see SAP Note 3065695.

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Define Countries/Regions
You must include all countries with which your company has business relationships. You need the following information for each country:

 General data

 Foreign trade characteristics

 Further test data

This data is then checked during master data maintenance.

Standard settings

In the SAP standard delivery system, all countries are defined according to the international ISO standard.

SAP recommendation

SAP recommends that you use the ISO standard for your additional entries.

If your entries do not correspond to the ISO standard, you cannot implement data exchange in international communication (e.g. payment transactions
with banks).

Activities

1. Check that the country entries are complete.

2. Add the missing countries, if necessary.
3. Use the ISO standard for your entries.
4. For each country, maintain the associated detail screen. In the detail screen you must, for example, create test data.

Define Field Status Variants

Short Text

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Field status variants use field status groups to specify which fields are ready for input, which fields must be filled, or which fields are suppressed when
entering postings. Note that additional account assignments (that is, for cost centers or orders) are possible only if data can be entered in the
corresponding fields. The groups defined here can be assigned in the company code part of the general ledger account master record.

Use

In this activity, you can define and edit field status variants and groups. You group several field status groups in one field status variant. You assign the
field status variants to a company code in the activity Assign Company Code to Field Status Variants. This allows you to work with the same field
status groups in any number of company codes.

You can also define and process field status groups. You must define a field status group in the company-code-specific area of each G/L account. The
field status group determines which fields are ready for input, which are required entry fields, and which are hidden during document entry. Bear in mind
that additional account assignments (for example, cost centers or orders) are only possible if the corresponding fields are ready for input.

Standard Settings

In the standard SAP system, the field status variant 0001 is entered for company code 0001. Field status groups are already defined for this field status
variant.

Note

Some fields cannot be defined with a field status. This includes, for example, fields from the document header. Some fields from the document header
can, however, be defined as required or optional fields in the document type.

The field status group you enter in the reconciliation accounts affects the corresponding customer or vendor accounts when posting. You cannot enter a
field status group in customer and vendor accounts. Field status groups are determined for customer and vendor accounts from their respective
reconciliation accounts, via the G/L account number in their master records.

In addition to the field status group, other factors influence the field status. These include:

 The field status, which is defined for the posting key.

The status "optional entry field" was assigned to posting keys 40 and 50 in the standard system. These are the standard posting keys for G/L
account postings. The status "optional entry field" does not have any influence on the field status.

 Specifications for document type.

There you can, for example, specify that a reference number and a document header must always be entered.
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Recommendation

Determine the field status using the field status groups in the G/L accounts. You then have an account-specific screen layout. No differentiation via posting
keys is possible since there are only two posting keys for postings to G/L accounts.

It acts differently with the reconciliation accounts. For these special G/L accounts, you do not define the field status differently using the master record. For
this, you use the debit and credit postings keys.

Activities

1. Create new field status variants using Edit -> New entries. You can also use the copy function to create new field status variants. To do this,
select Edit -> Copy as. When copying field status variants, the accompanying field status groups are also copied.
2. Look at the standard field status groups.
3. Find out which fields on the entry screens for the G/L Accounts in your company:

o Are to be ready for input

o Are required to have an entry

o Are to be hidden

You do not make this specification for each individual account, but for groups of accounts. In this case, use the standard field status groups as a
reference.
4. If necessary, change the standard field status groups, or define your own for each field status variant.
5. If there are any field status variants you no longer need, you can delete them by choosing Edit-> Delete. The accompanying field status groups
will also be deleted.

Assign Company Code to Field Status Variants

Use

In this IMG activity, you assign the company codes in which you want to work with identical field status groups to the same field status variant.

You define your field status group per field status variant. For more information, see Define Field Status Definition Groups.

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Standard settings

In the SAP standard, a field status variant of the same name is assigned to company code 0001.

Activities

Assign the company codes concerned to the same field status variant.

Define Document Types

Short Text

Define document types for posting journal entries.

Use

In this activity, you define your document types. Document types are used to differentiate the business transactions and to manage how documents are
stored. This documentation describes the special procedure for setting up document types for New General Ledger Accounting.

For general information about defining document types, see Define Document Types.

Activities

 If you only work with one ledger (the leading ledger), proceed as follows:
In this activity, define for all postings the document types for the documents in the entry view. Also assign a number range to the document
types.

Example:
Document Type SA, G/L Account Document, Number Range 01
Document Type SB, G/L Account Posting, Number Range 12

 If you work with a leading ledger and with non-leading ledgers, proceed as follows:
Since the majority of postings have the same effect in all ledgers, in this Customizing activity, define the document types for the entry view for
postings that affect all ledgers. Also assign a number range to the document types.

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Example:
Document Type SA, G/L Account Document, Number Range 01
Document Type SB, G/L Account Posting, Number Range 12
In the case of postings that do not have the same effect on all ledgers, proceed as follows:

o Postings only for the leading ledger:

Define a separate document type for these postings. Assign a unique number range to this document type.

Example:
Document Type SX, Closing Postings, Number Range 90

o Postings for non-leading ledgers:

You make these settings under Define Document Types for Entry View in a Ledger.

Note

By segregating the ledger-related postings (here, the leading ledger) in a separate number range, you ensure the contiguous assignment of document
numbers at the ledger level for each number range.

When editing and copying a document type, you cannot change the reversal document type and the attributes of the account types. This ensures the
consistency of the attributes of document types and the completeness during document splitting.

Document Type Description Document Type Description Document Type Description

AA Asset Posting RN Invoice - Net KR Vendor Invoice
AB Journal Entry RP Spl Inv Price Change KZ Vendor payment
AD Accruals/Deferrals RR Rev Rec Document M1 MCA Journal
AF Depreciation Pstngs RT Retentions M2 FX Swap
AN Net Asset Posting RV Billing doc.transfer M3 P&L Lock
AP Periodic asset post SA G/L Account Document M4 P&L Close
AR Asset Reorg Posting SB G/L Account Posting M5 P&L Transformation
CC Sec. Cost CrossComp. SC Transfer P&L to B/S M6 FX Valuation
CH Contract Settlement SD MENA Cust Debit Memo M7 MAR & Restatement
CL CL/OP FY Postings SE Inventory Postings M8 IFX Correction
CO Secondary Cost SJ Cash Journal Doc M9 Reversal
DA Customer document SK Cash Document MD Data Load

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DG Customer credit memo SU Intercomp./Clearing ML ML Settlement

DR Customer invoice TN ZR Bank reconciliation
DV Customer interests UE Data Transfer ZS Payment by Check
DZ Customer Payment UF Data Transfer FI-CA ZV Payment Clearing
ER Manual ExpenseTravel WA Goods Issue ZZ Billing doc.transfer
EU Euro Rounding Diff. WE Goods Receipt MV Open Item Revaluat.
EX External Number WI Inventory Document PF Payment Factory
KA Vendor Document WL Goods Issue/Delivery PR Price Change
KG Vendor Credit Memo WN Net Goods Receipt RA Sub.Cred.Memo Stlmt
KN Net vendors WP Warranty Credit RB Reserve for Bad Debt
KP Account maintenance WR Warranty Debit RE Invoice - Gross
Y1 Invoice - Gross WS RK Invoice Reduction

Define Document Types in a Ledger

Short Text

Assign number ranges to document types for non-leading ledgers.

Use

Here, you make the settings specifying the document type for postings to non-leading ledgers.

Under Define Document Types for Entry View, you make the document type settings for postings in the entry view that effect all ledgers int he same
way and for postings to the leading ledger.

Prerequisites

You work with a leading ledger and with non-leading ledgers.

Activities

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To define document types for postings to non-leading ledgers, proceed as follows:

Set up a separate document type for these postings. Assign a unique number range to this document type for each ledger.

Example:
Document Type SX, Closing Postings, Ledger L2, Number Range 91
Document Type SX, Closing Postings, Ledger L3, Number Range 92

Note

By encapsulating the ledger-related postings (here, for the non-leading ledgers) in a separate number range, you ensure the contiguous assignment of
document numbers at the ledger level for each number range.

Within a ledger group, the representative ledger determines the document types and number ranges applied. For this reason, you cannot perform this
Customizing activity for a ledger group.

If you use a ledger group to make account assignments for postings, it is only possible to verify that document numbers are assigned contiguously at the
ledger level for the representative ledger.

Controlling Area Currency Type in Journal Entries

The universal journal integrates postings of Financial Accounting (FI) and Controlling (CO). To be more specific, it unifies the general Ledger view of FI
with CO. As a consequence, each journal entry contains the currency type of the controlling area, regardless of whether this currency type is defined as
second or third local currency in FI. Each journal entry always contains the postings from CO.

If the currency type of the controlling area is defined as second or third local currency in FI, this currency type is filled not only in the general ledger view of
the FI postings (table ACDOCA, field KSL) but also in the entry view (table BSEG, fields DMBE2 etc.). The controlling area currency is thus integrated with
FI.

Notes
By default, the system defines the currency type of the controlling area as the second or third local currency in FI when:

 you create a new controlling area; or

 you assign a new company code to the controlling area.

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Having the currency type of the controlling area as second or third local currency in FI is the recommended setting. You can, however, overwrite this
currency setting manually, if needed. To check or change your setting, use transaction FINSC_LEDGER (section Company Code Settings for the Ledger
for the leading ledger) or transaction OB22.

Further notes
 The global currency in the journal entry (table ACDOCA, field KSL) always contains the controlling area currency (see transaction OKKP).

 The local currency in the journal entry (table ACDOCA, field HSL) always contains the company code currency (currency type 10).

Please note the following special case: If the controlling area currency type defined in transaction OKKP is 10, this currency type is contained in the
journal entry twice. Table ACDOCA then contains identical values in fields HSL and KSL.

Define Document Number Ranges

Short Text

Define and manage number ranges for journal entries.

Use

In this Customizing activity you create number ranges for the journal entries. For each number range, you specify the following (among other things):

 A number interval from which the document numbers are to be chosen

 The type of number assignment (internal or external)

Assign the number ranges to a document type or to multiple document types. The number range becomes effective via the document type when you are
entering or posting a document.

You can use one number range for several document types. This gives you the option to differentiate documents by document type, but merge them again
for archiving of the original documents.

Note

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The type of number assignment is of special importance. Therefore, for each document type you should check whether a separate number range must be
used and which type of number assignment is most appropriate.

One example of a case where external number assignment would be suitable is when you transfer documents from a feeder system. The numbers must
be unique. The number range is not displayed for external number assignment. You must therefore ensure that you do not skip any numbers when
assigning document numbers manually (for organizational reasons).

The number ranges for the documents are company-code-dependent and are also fiscal year-dependent, depending on Customizing. You must therefore
create your number ranges for each company code in which the document type is used, namely with the same number range key.

The number intervals must not overlap. If you use year-dependent number ranges, you can specify the same interval with the same key several times for
different to-fiscal years (the limit up to which a number range is still valid). If you want to define number ranges that are independent of the to-fiscal year,
enter 9999 in the To-Fiscal Year field.

Caution

For sample documents, use a number range with key X2 for recurring entry documents with key X1. These keys may not be used for other number
ranges.

Dccument Standard Non Non Standard Fiscal From To

Type Number Leading Leading Number with Year
assigned Ledger Ledger Unique Count
Number_T1 Number_T2
AA 01 70 80 00 2024 00000001 999999
AB 01 70 80 01 2024 1000000 1099999
AD 01 70 80 02 2024 2000000 2099999
AF 03 70 80 03 2024 3000000 3099999
AN 01 70 80 04 2024 4000000 4099999
AP 02 70 80 05 2024 5000000 5099999
AR 01 70 80 12 2024 12000000 12999999
CC 24 70 80 13 2024 13000000 13999999
CH 01 70 80 14 2024 14000000 14999999
CL 00 70 80 15 2024 15000000 15999999
CO 23 70 80 16 2024 16000000 16999999
DA 16 70 80 17 2024 17000000 17999999
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DG 16 70 80 18 2024 18000000 18999999

DR 18 70 80 19 2024 19000000 19999999
DV 16 70 80 20 2024 20000000 20999999
DZ 14 70 80 22 2024 22000000 22999999
ER 22 70 80 23 2024 23000000 23999999
EU 02 70 80 24 2024 24000000 24999999
EX 02 70 80 47 2024 47000000 47999999
KA 17 70 80 48 2024 48000000 48999999
KG 17 70 80 49 2024 49000000 49999999
KN 01 70 80 50 2024 50000000 50999999
KP 48 70 80 51 2024 51000000 51999999
KR 19 70 80 52 2024 52000000 52999999
KZ 15 70 80 53 2024 53000000 53999999
M1 01 70 80 54 2024 54000000 54999999
M2 01 70 80 RB 2024 55000000 55999999
M3 01 70 80 WY 2024 56000000 56999999
M4 01 70 80 Z1 2024 90000000 90999999
M5 01 70 80 ZZ 2024 91000000 91999999
M6 01 70 80 70 2024 70000000 70999999
M7 01 70 80 80 2024 80000000 80999999
M8 01 70 80 X1 2024 92000000 92999999
M9 01 70 80 X2 2024 93000000 93999999
MD 01 70 80
ML 47 70 80
MV 01 70 80
PF 01 70 80
PR 48 70 80
RA 51 70 80
RB RB 70 80
RE 51 70 80
RK 53 70 80
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RN 51 70 80
RP 51 70 80
RR 01 70 80
RT 51 70 80
RV Z1 70 80
SA 01 70 80
SB 12 70 80
SC 01 70 80
SD 18 70 80
SE 54 70 80
SJ 13 70 80
SK 13 70 80
SU 01 70 80
TN 50 70 80
UE 04 70 80
UF 04 70 80
WA 49 70 80
WE 50 70 80
WI 49 70 80
WL 49 70 80
WN 50 70 80
WP WY 70 80
WR WY 70 80
WS 50 70 80
Y1 52 70 80
ZP 20 70 80
ZR 20 70 80
ZS 05 70 80
ZV 20 70 80

Define Tolerance Groups for Employees

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In this activity you can define different amount limits for your employees. You use these limits to determine:

 The maximum amount for which an employee is permitted to post a document

 The maximum line item amount an employee is permitted to enter in a customer, vendor or general ledger account

 The percentage amount an employee can enter in a line item

 The maximum acceptable payment difference

Payment differences within certain tolerance groups are posted automatically. The system either adjusts the discount or posts the difference to a separate
expense or revenue account.

To do this, you have to define:

 The maximum amounts or percentage rates that the system should automatically post to a separate expense or revenue account if an adjustment
to the discount is not possible, and/or

 The difference amounts for which the system should adjust the discount. In this case the discount is automatically increased or reduced by the
amount of the difference.

You can also differentiate according to company codes. Since the same limits usually apply for a group of employees, enter the limits for employee
groups. You then define the amount limits and tolerances per employee group and company code.

Note

You can also define tolerances without defining a tolerance group. In this case, leave the field Grp blank. The tolerances so defined then apply to all
employees that are not assigned to a group. There must be at least one entry for each company code.

You can also define tolerances for clearing transactions in the Customers, Vendors or G/L account master records. The lower limits from the
specifications for the trading partner and the employee group then apply for clearing.

Standard settings

Example tolerances are defined in the system for the standard company codes delivered.

Activities
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1. For each company code, establish whether tolerances should be defined and whether differentiation according to employee group is required.
If you want to define different tolerances for your employees, specify different amount limits for different groups. If the tolerance limits are to apply
to all employees, leave the field "Group" blank.
2. Define the tolerances accordingly.
3. If you have defined different tolerance groups, you must then assign your employees to a specific tolerance group. To do this, select the
activity Assign User Tolerance Groups.

Define Tolerance Groups for G/L Accounts

Short Text

Check the tolerance groups for your G/L accounts.

Use

For G/L account clearing, tolerance groups define the limits within which differences are accepted and automatically posted to predefined accounts. The
groups defined here can be assigned in the general ledger account master record.

Define Tolerances (Suppliers)

In this step, you specify the tolerances for vendors. These tolerances are used for dealing with differences in payment and residual items which can occur
during payment settlement. Specify the tolerances under one or more tolerance groups. Allocate a tolerance group to each vendor via the master record.
For each tolerance group, specify the following:

 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

Note

Bear in mind that you can also define employee tolerances. When clearing, the lower limit for the customer specifications and employee group
specifications are taken.

Activities

1. Specify the tolerances for your vendors.

2. Make sure that the required tolerances are allocated to the vendors in the master record.

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Define Posting Keys

In this activity you define posting keys. Users specify a posting key before entering a line item. The posting key controls how the line item is entered and
processed.

For each posting key, you define among other things:

 which side of an account can be posted to,

 which type of account can be posted to, and

 which fields the system displays on the entry screens and whether an entry must be made (field status).

Note

The system also uses the field status group you specify in a G/L account to determine the status of fields in document entry. Field status groups are
defined within a field status variant.

Recommendation

Use the posting keys delivered with the standard system.

Activities

1. Check the standard settings.

2. Modify them if necessary.
In particular, you may need to make changes to customer and vendor posting keys if a different field status is required.

Postin Description Debit/Credi Account Type Postin Description Debit/Credi Account

g Key t g Key t Type
00 Act assignment model 37 Other clearing Credit Vendor
01 Invoice Debit Customer 38 Payment clearing Credit Vendor
02 Reverse credit memo Debit Customer 39 Special G/L credit Credit Vendor
03 Expenses Debit Customer 40 Debit entry Debit G/L account

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04 Other receivables Debit Customer 50 Credit entry Credit G/L account

05 Outgoing payment Debit Customer 70 Debit asset Debit Asset
06 Payment difference Debit Customer 75 Credit asset Credit Asset
07 Other clearing Debit Customer 80 Stock initial entry Debit G/L account
08 Payment clearing Debit Customer 81 Costs Debit G/L account
09 Special G/L debit Debit Customer 83 Price difference Debit G/L account
0A CH Bill.doc. Deb Debit Customer 84 Consumption Debit G/L account
0B CH Cancel.Cred.memoD Debit Customer 85 Change in stock Debit G/L account
0C CH Clearing Deb Debit Customer 86 GR/IR debit Debit G/L account
0X CH Clearing Cred Debit Customer 89 Stock inwrd movement Debit Material
0Y CH Credit memo Cred Debit Customer 90 Stock initial entry Credit G/L account
0Z CH Cancel.BillDocDeb Debit Customer 91 Costs Credit G/L account
11 Credit memo Credit Customer 93 Price difference Credit G/L account
12 Reverse invoice Credit Customer 94 Consumption Credit G/L account
13 Reverse charges Credit Customer 95 Change in stock Credit G/L account
14 Other payables Credit Customer 96 GR/IR credit Credit G/L account
15 Incoming payment Credit Customer 99 Stock outwd movement Credit Material
16 Payment difference Credit Customer 24 Other receivables Debit Vendor
17 Other clearing Credit Customer 25 Outgoing payment Debit Vendor
18 Payment clearing Credit Customer 26 Payment difference Debit Vendor
19 Special G/L credit Credit Customer 27 Clearing Debit Vendor
1A CH Cancel.Bill.docDe Credit Customer 28 Payment clearing Debit Vendor
1B CH Credit memo Deb Credit Customer 29 Special G/L debit Debit Vendor
1C CH Credit memo Deb Credit Customer 31 Invoice Credit Vendor
1X CH Clearing Cred Credit Customer 32 Reverse credit memo Credit Vendor
1Y CH Cancel.Cr.memo C Credit Customer 34 Other payables Credit Vendor
1Z CH Bill.doc. Cred Credit Customer 35 Incoming payment Credit Vendor
21 Credit memo Debit Vendor 36 Payment difference Credit Vendor
22 Reverse invoice Debit Vendor

Edit Chart of Accounts List

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Short Text

Maintain the charts of accounts that you need and their attributes.

Use

Standard settings

In the chart of accounts list, you enter the charts of accounts that you want to use in your organization.

The chart of accounts list already contains sample charts of accounts for some countries. Charts of accounts GKR and IKR, for example, have been
entered for Germany.

Activities

1. Check whether you can use one of the charts of accounts supplied with the standard system. To do this, you can display the charts of accounts
on the screen or print them out using the Chart of Accounts report. Alternatively, you can use the Manage Chart of Accounts Fiori app.
2. If you want to create your own chart of accounts, enter it in the chart of accounts list.

Define Account Group

Short Text

You use account groups to combine accounts by criteria (for example, a P&L account group, asset account group, or a material account group).

Use

When creating a G/L account, you must specify an account group.

You use the account group to determine the following:

 The range for the account numbers

 Which fields are required or optional entries when creating and changing master records

 When creating and changing master records, which fields can be hidden to control the screen output

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Note: Account groups for G/L accounts are dependent on the chart of accounts.

Define Retained Earnings Account

You assign a retained earnings account to each P&L account by specifying a P&L statement account type in the chart of accounts area of each P&L
account.

At the end of a fiscal year, the system carries forward the balance of the P&L account to the retained earnings account. You can define one or more P&L
statement account types per chart of accounts and assign them to retained earnings accounts.

Note

Your specification depends on the chart of accounts.

Requirements

The chart of accounts must be specified in the chart of accounts list.

Standard settings

Account 332000 was defined for chart of accounts IKR and account 900000 was defined for GKR, using the key "X" respectively.

Activities

1. Change the standard settings if necessary.

If you do not use one of the standard charts of accounts, you must specify the P&L statement account type(s) and the retained earnings accounts
for each new chart of accounts you set up.
2. Make sure the accounts you specify are created.

Assign Company Code to Chart of Accounts

Short Text

Check and maintain the assignment of charts of accounts to company codes.

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Prerequisites

The chart of accounts that you need must be defined in the chart of accounts list. Use the Edit Chart of Accounts List step to enter a chart of accounts in
the chart of accounts list.

Standard settings

For each company code, ensure that the relevant chart of accounts is assigned. One chart of accounts can be used by several company codes.

Corresponding charts of accounts were assigned to the standard company codes.

Activities

1. If you use a standard company code, check whether the chart of accounts you require is assigned to it.
2. Assign the required chart of accounts to your company code.

Maintain Controlling Area

In this step, you can:

 Create a controlling area

 Change the settings for an existing controlling area

 Copy the controlling area "0001"

Basic Data

The deciding factor for basic data characteristics is the organization of cost accounting, meaning the assignment of company code(s) to a controlling
area.

If you have already created master data, you cannot then remove the company codes already assigned. However, you can assign more company codes
to the controlling area.

Note on number of controlling areas

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The way you assign company codes and controlling areas affects your currency settings, in other words, the currency type, the currency, and the
currency-related updating, as well as the chart of accounts, and the fiscal year variant of the controlling area.

Further basic data for a controlling area includes the cost center standard hierarchy and the settings for the reconciliation ledger.

Control indicator

You can use the control indicator to activate or deactivate particular components and functions in Controlling per fiscal year.

Assignment

If you require cross-company code cost accounting, you need to explicitly assign the company codes to the controlling area.

Prerequisites

 In your organizational structure, you specified whether you require cross-company code cost accounting or whether the controlling area is used in
a 1:1 relationship with the company code.

 In Customizing, under Global settings, you have defined the currencies that you require.

 In Customizing, under Enterprise Structure -> Maintain Structure -> Definition -> Financial Accounting, you created one or more company codes.

 In Customizing, under Financial Accounting -> Financial Accounting Global Settings -> Fiscal Year -> Maintain Fiscal Year Variants, you have
defined the fiscal year variants that you require.

 As a minimum, you have defined the currency, the fiscal year variant and the chart of accounts in the Global Parameters of the company code.
To do so, in Customizing choose Financial Accounting -> Financial Accounting Global Settings -> Company code -> Enter Global Parameters.

 You must have system authorization for table maintenance from the standard tool (authorization object S_TABU_DIS).

Standard settings

The standard SAP system includes controlling area 0001. Company code 0001 is assigned to this controlling area.

Recommendation

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It is recommended that you copy controlling area 0001 to a user-defined controlling area and adjust it according to your requirements. You can for
example use the country-specific installation program to enter the appropriate country-specific/region-specific default settings you require. Default
parameters, such as the definition of number ranges, are already maintained for this controlling area.

Activities

Copy the controlling area "0001"

1. Adapt the default settings to your country.

a) To do this, choose Enterprise Structure -> Localize Sample Organizational Units in Customizing.
b) Choose Country version.
2. Create your own controlling area with company code as a Copy of controlling area "0001" with company code "0001".
3. Adjust this copy to your requirements.
a) To do so, in the dialog box, choose Maintain controlling area.
b) Select your controlling area and change the settings.

Delete controlling area

You can delete the controlling areas supplied by SAP if you:

 Create all organizational units afresh.

 Have created all organizational units using the SAP delivery data.

To do so, create your own controlling area with company code as a copy of the controlling area "0001" with company code "0001".
Now delete the controlling areas you no longer require.

To delete a controlling area supplied by SAP, proceed as follows:

1. In the dialog box, choose Delete SAP Delivery Data.

2. From the list, select the controlling areas you want to delete.
3. Choose Delete.

Note on Deleting SAP Standard System Data

Create controlling area

1. From the dialog box, choose Maintain controlling area.

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2. Choose New entries and enter the basic data.

3. Maintain the control indicator
4. Maintain the assignment of company codes

Change controlling area

1. From the dialog box, choose Maintain controlling area.

2. Choose the corresponding controlling area.
3. Maintain the settings that are still missing.

Notes on transporting

To transport controlling area settings, see the function in Customizing for General Controlling.

Further notes

For more information on organization in Controlling and on maintaining controlling areas, see SAP Library under Financials -> Controlling (CO) ->
Controlling -> Organization in Controlling.

For more information on cross-company-code cost accounting, see SAP Library under Financials -> Controlling (CO) -> Cost Element Accounting -> The
Reconciliation Ledger.

Maintain Controlling Area Settings

In this IMG activity you define the general control parameters for the current controlling area.

Controlling area settings

 The first step you need to take is to enter the name of the standard hierarchy of profit center master data.

The system creates the standard hierarchy automatically when you save. You can then maintain it under Master data -> Standard hierarchy in
Customizing.

 The dummy profit center receives all the postings in your system to objects which are not assigned to a profit center. This ensures that your
data will be complete in Profit Center Accounting.

This field is displayed here for informational purposes only. You create the dummy profit center under Master data -> Dummy center.

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 The checkbox Elim. of internal business lets you eliminate internal business volume in your controlling area. If you check off this field, the
system will not update transaction data between objects which are assigned to the same profit center in account-based EC-PCA.

Example: When you make a secondary allocation from one cost center to another, and both cost centers are assigned to the same profit center,
this information will only be updated to Profit Center Accounting if elimination of internal business is not active.

 In the field Currency type, you enter the type of currency you want to use as the special profit center report currency. The system uses this
currency in some standard reports, which display data in this currency.

The transaction data in Profit Center Accounting is updated in up to three currencies:

o transaction currency (optional): currency in which the transaction was carried out.

o company code currency (mandatory)

o the so-called third currency (mandatory): a special profit center local currency

In the Profit center local currency type field, you set the type of special profit center local currency you want to use. This is used, for example,
for standard reports which display values in this currency.
You can choose from between the

o group currency (30)

o controlling area currency (20) and the

o special profit center currency which you can define (90). If you choose the last option, you need to enter that currency in the next field.

 If you choose the group currency or controlling area currency as the profit center report currency, the field profit center local currency must
remain blank. The system will determine the currency automatically as data is posted. If you choose the special profit center currency, enter that
currency here.

 The field Store transaction currency lets you decide whether the system should also update the transaction data to Profit Center Accounting in
the transaction currency.

This is only possible, however, if you selected legal valuation view. Deactivating this flag reduces your data volume. However, it is then no
longer possible to analyze your data in the transaction currency.

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 The field "Valuation" determines whether the data in Profit Center Accounting is stored using the transfer price from the legal view, the group
view, or the profit center view in this controlling area. For a detailed description of the different valuation methods and views in transfer pricing,
see the online documentation for Profit Center Accounting.

You can only set a different valuation than the legal one if you are using transfer prices. To activate this function, you must carry out the steps
described in Customizing for Controlling, under Multiple Valuation Methods/Transfer Prices). If you use a currency and valuation profile that
calls for profit center valuation, you must use profit center valuation here.
If you store your data in Profit Center Accounting in the transaction currency, you can only use legal valuation here.
(See also Transfer Prices.)
A distribution method determines whether and how data in Profit Center Accounting is distributed across systems using ALE (Application Link
Enabling). For more information, see Set Up Distribution of Profit Center Data.

Note

In most cases, you can no longer change these settings once data has been posted to Profit Center Accounting in the controlling area.

An exception to this is changing the currency type: where the type of currency being used is the same, it is possible, even after postings have been
made, to change the currency type from 90 to 20 or 30, from 20 to 30 and from 30 to 20.

You can also change the ALE distribution method after postings have already been made. However, you also need to perform a number of additional
activities to do this. Note the long texts for the messages which appear when changing the distribution method, and see the information under Set
distribution of profit center data.

Control indicator

This flag activates Profit Center Accounting in the controlling area beginning with the specified fiscal year.

This flag lets other components easily see whether they need to perform activities for Profit Center Accounting. If the indicator is not set, no data is posted
to Profit Center Accounting.

Actions

Maintain the desired control indicators for the current controlling area.

Then enter the control parameters for transferring actual data.

If you want to transfer plan data, you also need to create the desired plan versions.

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Select the checkbox in the line with the correct fiscal year to activate Profit Center Accounting.

Note

In the view "Control Indicators for Profit Center Accounting", the system only displays those combinations of controlling area and fiscal year for which
other control indicators in Controlling already exist. This means that other functions in CO must be active for the corresponding controlling area and fiscal
year as well. These might include: Cost Center Accounting, Orders, Projects, Sales Orders, Profitability Analysis, etc. Since Profit Center Accounting
takes its data primarily from these applications (the profit center is automatically posted in the background), it only makes sense to activate Profit Center
Accounting if at least one of these other applications is also active.

To obtain additional entries in this view, proceed as follows:

 Choose the function Environment -> Controlling area in another application, such as Cost Center Accounting or Internal Orders.

 Position the cursor on the desired controlling area.

 Choose the function Goto -> Control indicators.

 Make a new entry with the appropriate indicators for the desired "From" fiscal year, and save your changes.

 For more information, see the Implementation Guide for Cost Center Accounting in the section Activate cost center accounting in controlling
area

Notes on transporting

You can transport the Customizing settings for Profit Center Accounting under Transport Connection.

Define Standard Hierarchy

If you do not use the Enterprise Organization function, create the standard hierarchy for profit centers in this IMG activity and make any necessary
changes.

The standard hierarchy is a tree structure for organizing all the profit centers belonging to a controlling area. In the standard hierarchy, there are two types
of node as structure elements:

 Profit centers can be assigned directly to an end node.

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 Summarization nodes do not themselves contain profit centers. Instead, they summarize other nodes (end nodes or summarization nodes).

The system divides the nodes into these types automatically. If you have already assigned profit centers to a node, you can no longer attach any
subnodes to it. Similarly, profit centers cannot be assigned to a node that already contains subnodes.

Prerequisites

The following prerequisites apply for this function:

 In Profit Center Accounting: When defining the settings for the relevant controlling area, you need to have entered the name of the standard
hierarchy.

 In new General Ledger Accounting (with the scenario Profit Center Update): You need to have performed the activity Define Profit Center
Standard Hierarchy in Controlling Area.

Recommendation

First create a special group for the dummy profit center of the controlling area. You create this special group directly under the hierarchy root node, which
has generally already been created automatically. This makes it easier later in the information system to display the nonassigned costs and revenues for
this controlling area.

Activities

Subsequently, in the definition of the master data, the actual profit centers are assigned to the hierarchy areas. With this function, only the hierarchical
structure for the profit center groups of the standard hierarchy is defined.

Further notes

You have the option of copying the standard hierarchy of Cost Center Accounting so that you can use it as a template.

Notes on transporting

You can transport the Customizing settings for Profit Center Accounting under Transport Connection.

Create Dummy Profit Center

This function lets you create the dummy profit center for the current controlling area.
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The dummy profit center is updated in data transfers whenever the object to which the data was originally posted (cost center, order, and so on) is not
assigned to a profit center. This ensures that the data in Profit Center Accounting is complete. You can later send the data on the dummy profit center to
the other profit centers using assessment or distribution.

You create the master record for the dummy profit center using this special transaction. To change or display it, use the normal profit center maintenance
functions.

The name of the dummy profit center is displayed in the controlling area settings for Profit Center Accounting.

Prerequisites

The standard hierarchy must exist for the current controlling area.

Actions

Enter the name of the dummy profit center. The rest of the steps are the same as when you create a normal profit center.

Choose the function Extras -> Set controlling area first to make sure that the correct controlling area is set.

Notes on transporting

You can transport the Customizing settings for Profit Center Accounting under Transport Connection.

Define Profit Center

With this function you create profit center and change profit center master data.

Prerequisites

 Set the desired controlling area beforehand.

 The standard hierarchy for the controlling area must have been created either directly of via the enterprise organization.

Actions

See the SAP Library for Profit Center Accounting, under Basic

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Functions -> Master Data -> Profit Center for detailled instructions.

Further notes

You can copy cost centers to profit centers and then change these as desired.

Notes on transporting

You can transport the Customizing settings for Profit Center Accounting under Transport Connection.

Information on Document Splitting

You can use the document splitting procedure to split up line items for selected dimensions (such as receivable lines by profit center) or to effect a zero
balance setting in the document for selected dimensions (such as segment). This generates additional clearing lines in the document. Using the document
splitting procedure is the prerequisite for as well as an essential tool for drawing up complete financial statements for the selected dimensions at any time.

You can choose between displaying the document with the generated clearing lines either in its original form in the entry view or from the perspective of a
ledger in the general ledger view.

For document splitting to be possible, the individual document items and the documents must be classified. Each classification corresponds to a rule in
which it is specified how document splitting is to occur and for which line items.
SAP delivers a set of standard rules that should usually prove sufficient. If not, you can define your own set of rules and adapt these according to your
needs.

Example

Example 1: Invoice

Suppose a vendor invoice containing the following items is entered:

Posting Key Account Segment Amount

31 Payables -100
40 Expense 0001 40
40 Expense 0002 60

Document splitting then creates the following document in the General Ledger view:

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Posting Key Account Segment Amount

31 Payables 0001 -40
31 Payables 0002 -60
40 Expense 0001 40
40 Expense 0002 60

Example 2: Payment

The payment for the above vendor invoice then contains the following items when entered:

Posting Key Account Segment Amount

50 Bank -95
25 Payables 100
50 Cash Discount Received -5

Document splitting then creates the following document in the General Ledger view:

Posting Key Account Segment Amount

50 Bank 0001 -38
50 Bank 0002 -57
25 Payables 0001 40
25 Payables 0002 60
50 Cash Discount Received 0001 -2
50 Cash Discount Received 0002 -3

Document Splitting

G/L Accounts From To Empty Splitting rule G/L Accounts From To Empty Splitting rule
100000 119999 01000 240000 249999 04000
120000 120500 07000 250000 254999 02000
120501 129999 05100 255000 259999 03100
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130000 139999 05200 260000 299999 01000

140000 149999 01000 300000 399799 30000
150000 154999 03000 399800 399899 40100
155000 159999 02100 399900 399999 40200
160000 199899 01000 400000 409999 06000
199900 199997 40200 410000 499799 20000
200000 209999 07000 499800 499899 40100
210000 219999 01000 499900 499990 40200
220000 229999 05100 499991 499999 20000
230000 239999 06000 800000 800100 01000

Define Zero-Balance Clearing Account

For account assignment objects for which you want to have a zero balance setting, the system checks whether the balance of account assignment object
is zero after document splitting.

If this is not the case, the system generates additional clearing items. In this activity, you have to create a clearing account for these additional clearing
items.

Activities

Create a clearing account for your chart of accounts.

Define Document Splitting Characteristics for General Ledger Accounting

Short Text

Define account assignment objects (such as segment or profit center) for which you want to perform document splitting.

Use

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In this Customizing activity, you specify for which characteristics you want to perform document splitting in general ledger accounting. You can define the
following:

 Whether you want a balance sheet with a zero balance for the characteristic under Field

 Whether you want to use a partner field to document a sender/receiver relationship in the clearing lines generated additionally in the document

 Whether you want the characteristic to be a required entry field for the characteristic under Field (whereby the system only accepts postings when
this field is filled with a value from the document splitting)

For more information, see the product assistance for SAP S/4HANA on SAP Help Portal. In the area Finance -> Accounting and Financial Close ->
General Ledger Accounting, search for Document Splitting.

Prerequisites

The characteristics that you specify should be maintained in at least one of your ledgers.

Standard settings

If you have not yet entered any characteristics, the system proposes appropriate fields that are updated in your ledgers.

Activities

Check the settings and then save.

Correct the Customizing settings for ledgers for the universal journal
Message No. FINS_ACDOC_CUST201

Diagnosis
There are inconsistencies in the Customizing settings for ledgers for the universal journal.

System Response
To prevent database mismatches, postings are not allowed as long as the customizing settings are not consistent.
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Procedure
Check the Customizing settings using transaction FINS_CUST_CONS_CHK.

If this message was displayed during a posting activity, use transaction FINS_CUST_CONS_CHK_P to check the specific Customizing settings for the
relevant company codes and ledgers.

Define Ledger for CO Version

Use

In this activity, you assign G/L ledgers to controlling (CO) versions. This means that controlling will then read the actual data (postings) from the G/L
ledgers you specify here.

Prerequisites

In the ledger settings of the you enter here, all company codes must have the same fiscal year variant as the controlling area.

Activities

You need to assign each actual version of the controlling area to a G/L ledger. Please be aware of the following constraints:

 CO version 000 must be assigned to the leading ledger.

 You can't assign a CO version to an extension ledger.

 Assign all productively used actual versions, but don't assign delta versions in case you converted them from ECC.

Further notes
More information about the dependency between currency types, ledgers and CO versions.

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