Chart of Accounts

CHART OF ACCOUNTS Transaction Code :-OBY7 A Chart of Accounts is a detailed listing of all the accounts the company uses for recording transaction that represent both Balance Sheet and Profit & Loss accounts Contains list of G/L accounts in an ordered form Each general ledger is set up according to a COA Many company codes may use the same COA All a group Organizational units use the same Chart of Accounts TYPES OF COA:1. Operating Chart of Accounts 2. Group Chart of Accounts 3. Country specific Chart of Accounts

Charts of accounts can have three different functions in the system: 1. Operating chart of accounts The operating chart of accounts contains the G/L accounts that you use for posting in your company code during daily activities. Financial Accounting and Controlling both use this chart of accounts. You have to assign an operating chart of accounts to a company code. Operating COA- Used for recording day to day business transactions 2. Group chart of accounts The group chart of accounts contains the G/L accounts that are used by the entire corporate group. This allows the company to provide reports for the entire corporate group. The assigning of an corporate group chart of accounts to a company code is optional. Group COA- used for consolidation purpose in case you have more than one operating chart of account 3. Country-specific chart of accounts The country-specific chart of accounts contains the G/L accounts needed to meet the country's legal requirements. This allows you to provide statements for the country's legal requirements. The assigning of an country-specific chart of accounts to a company code is optional.

country specific COA- if you have two company codes , one is US and one in europe and you have chosen to use one chart of account for the two company codes, then to record country specific transactions , like tax, etc you can use country specific chart of account Required information to create a chart of account: Chart of Accounts = Key in four-character alphanumeric identifier Description = Chart of Account for <your company name> Maint Language = English Length of G/L Account Number = 6 (the valid range is 4 to 10) Controlling Integration = Manual creation of Cost Elements

TYPES OF TESTING IN SAP FINANCIAL Unit Testing When you test every single document is called unit testing. String Testing One transaction full activity is called string testing . For example Vendor invoice, goods received and vendor payment. Integration Testing It is purely with other modules and we have to check whether the FI testing is working with other related modules or not. Regression Testing Testing for whole database. Bring all the data into another server and do the testing is called regression.
Abbreviations in SAP

ABAP APJ

Advanced Business Application Programming Asia Pacific Japan

BCM BAI CO-PA CO-CCA CO-PCA WBS CRM EC-PCA EMEA

Bank communication management Banking And Administrative institute Controling Production Accounting Controlling Cost Centre Accounting COntrolling Profit Center Accounting Work Breakdown Structure on the Project system. Customer relationship management Enterprise Controlling Profit Centre Accounting Europe middle east Africa

FAGLGLEXTG Financial Accounting General Ledger Flexible Table. SOP SPRO SME POS SDN SCN PLM POA SCM Sales Operation Planning System Project Reportery Object Subject Matter Experts Point of sale SAP Developer Network SAP Community Network Product lifecycle management Performance optimization applications Supply chain management Systems, Applications, Products in Data Processing (German: Systeme, Anwendungen, Produkte) Logistic Invoice Variances Strategic Business Units

SAP

LIV SBU

Master Data

What is Master Data?

Master data is any information that is considered to play a key role in the core operation of a business. It may include data about vendors, materials, customers, banks, general ledger accounts, inventory, suppliers, analytics and more. Master data is shared by all AOI groups across an organization and is stored on one system.

Dunning

Dunning is a reminder to the customer or vendor to make payment on outstanding invoices. It typically consists of a letter that summarizes the invoices that are past due and politely requests payment to be made. When you customize dunning you have to create dunning area like at what level you want to use the dunning, like business area level or company code level. After that you have to make settings for dunning procedure, in that you have to define no of due dates and no of dunning levels. there are maximum 9 levels are there.

Dunning Business Processes Dunning is actually the process by which you bill or invoice a customer for past due items. With regards bad Checks for example dunning procedure could follow these steps: Step 1: Phone call to customer on receipt of bad check at this stage, perform the journal posting outlined in section on Returned Checks Step 2: Letter to customer (+10 days) Step 3: Letter to CO (+7 days) Step 4: Legal letter to customer (? DD139) (+13 days) Step 5: Issue DD139 (+10 days) Step 6: Follow-up on DD139 (dispersing officer) (+45 days) Step 7: Write-off (after 6 months) Steps 2-6 above will be handled by dunning levels in SAP. Configuration before dunning can be carried out-Defining Dunning Area -Define Dunning Keys -Define Dunning Block Reasons -Dunning Procedure -Define Dunning Procedure (T. Code FBMP), To set up a Dunning Procedure, the following must be specified: number of Dunning Levels (1-9) Dunning Texts, Standard Text can also be included in the Dunning Texts. Dunning Procedure major parameters: Dunning Interval, Number of Dunning Levels, Grace Period Assign Dunning Procedure to Customer / Vendors Accounts (T. Code XD02) Define Correspondence Types (T. Code OB77) -Assign Company Codes to Correspondence company Codes -Assign Programs for Correspondence Types (OB78) -Dunning Run: Transaction Code: F150 Menu Path: accounting > financial accounting > accounts receivable > periodic processing > dunning. Note: Whenever you schedule more than one dunning run a day, the Identification number must change. You may run several dunning runs on the same date but the Identification name must be different as well as certain parameters such as the Dunning Date and Documents Posted up to date.

Chart of Accounts

CHART OF ACCOUNTS Transaction Code :-OBY7 A Chart of Accounts is a detailed listing of all the accounts the company uses for recording transaction that represent both Balance Sheet and Profit & Loss accounts

Contains list of G/L accounts in an ordered form Each general ledger is set up according to a COA Many company codes may use the same COA All a group Organizational units use the same Chart of Accounts

TYPES OF COA:1. 2. 3.

Operating Chart of Accounts Group Chart of Accounts Country specific Chart of Accounts

Charts of accounts can have three different functions in the system: 1. Operating chart of accounts The operating chart of accounts contains the G/L accounts that you use for posting in your company code during daily activities. Financial Accounting and Controlling both

use this chart of accounts. You have to assign an operating chart of accounts to a company code. Operating COA- Used for recording day to day business transactions 2. Group chart of accounts The group chart of accounts contains the G/L accounts that are used by the entire corporate group. This allows the company to provide reports for the entire corporate group. The assigning of an corporate group chart of accounts to a company code is optional. Group COA- used for consolidation purpose in case you have more than one operating chart of account 3. Country-specific chart of accounts The country-specific chart of accounts contains the G/L accounts needed to meet the country's legal requirements. This allows you to provide statements for the country's legal requirements. The assigning of an country-specific chart of accounts to a company code is optional.

country specific COA- if you have two company codes , one is US and one in europe and you have chosen to use one chart of account for the two company codes, then to record country specific transactions , like tax, etc you can use country specific chart of account

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

What is a Company Code and what are the basic organizational assignments to a company code? Company Code is a unique four alphanumeric characters that represents an independent and legal accounting entity.

Company Code is a legal entity for financial statements like Profit and Loss and Balance Sheets are generated. Plants are assigned to the company code, Purchasing organization is assigned to the company code, and Sales organization is assigned to the company code.

What is the relation between a Controlling Area and a Company code? A Controlling area can have the following 2 type of relationship with a Company code a. Single Company code relation b. Cross Company code relation

Controlling Area is the umbrella under which all controlling activities of Cost Center Accounting, Product Costing, Profit Center and Profitability Analysis are stored. In a similar way Company Codes is the umbrella for Finance activities.

How many Chart of Accounts can a Company code have? The COA is a variant that contain the structure and the basic information about general ledger accounts. COA is used by one or several company codes. Only one COA can be assigned to CCODE. But Country Specific and Group COA are optional. When we use parallel COA like Country specific, we need to choose which one should consider for B/Sheet and P&L account.

What are the options in SAP when it comes to Fiscal years? Fiscal year is nothing but the way financial data is stored in the system. SAP provides you with the combination of 12 normal periods and also four special periods. These periods are stored in what is called the fiscal year variant.

There are two types of Fiscal Year Variant

Calendar Year Year Dependent Fiscal Year

SAP allows maximum of 16 posting periods each fiscal years. The 16 periods normally comprise 12 regular posting period and 4 special positing period which can be used for such things as posting audit or tax adjustments to a closed fiscal year.

K4 = JAN-DEC V3= APR-MAR V6= JUL- JUN V9= OCT-SEP R1= SHORTERNED FISCAL YEAR

What is a year dependent fiscal year variant ? In a year dependent fiscal year variant the number of days in a month are not as per the calendar month.

How does posting happen in MM (Materials Management) during special periods? There is no posting which happens from MM in special periods. Special periods are only applicable for the FI module. They are required for making any additional posting such as closing entries, provisions. which happen during quarter end or year end.

How many currencies can be configured for a company code?

A company code can have 3 currencies in total. They are local currency ie company code currency) and 2 parallel currencies. This gives the company the flexibility to report in the different currencies.

Do you require to configure additional ledger for parallel currencies? Where only 2 currencies are configured (Company code currency and a parallel currency) there is no need for an additional ledger. In case the third parallel currency is also configured and if it is different than the second currency type, you would then need to configure additional ledger.

If there are two company codes with different chart of accounts how can you consolidate their activities? In this case you either need to write an ABAP program or you need to implement the Special Consolidation Module of SAP. If both the company codes use the same chart of accounts then standard SAP reports give you the consolidated figure.