A

Project
On

Creation of a Virtual Company Using SAP Tool

Prepared By

Mr. Sritam Kumar Dash

Enrollment No: 13DM036
Batch: 2013-15, Sec-B

Under the Guidance Of

Prof. Babuli Sahu

As a Part of ERC Course

Institute of Management & Information Science

Bhubaneswar

Contents
1) Introduction to SAP
2) Merits and Demerits of ERP
3) SAP architecture
4) SAP software
5) Creation of Company
6) Company Code
7) Chart of account
8) Account Group
9) Retained Earnings Account
10) Field status variant
11) Assign company code to field status variant
12) New General Ledger account
13) Check the list of account
14) Company wise detail
15) Define Business Area
16) Fiscal Year
17) Assign Company code to Fiscal year
18) Posting Period
19) Open and close posting period
20) Assign company code to posting period variant
21) Document type and Number Range
22) Tolerance Group
23) Assign tolerance group to company
24) Global Parameter
25) Financial statement version
26) Document splitting
27) Document/ Voucher Entry
28) Reports
29) Conclusion & Limits

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Introduction to SAP
SAP ERP is enterprise resource planning software developed by the German company SAP
SE. SAP ERP incorporates the key business functions of an organization. The latest version
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(SAP ERP 6.0) was made available in 2006. The most recent Enhancement Package (EHP7)
for SAP ERP 6.0 was released in 2013.
SAP ERP was built from modules comprising the former SAP R/3. SAP R/3 through version
4.6c consisted of various applications on top of SAP Basis, SAP's set of middle ware
programs and tools. When SAP R/3 Enterprise was launched in 2002, all applications were
built on top of the SAP Web Application Server. Extension sets were used to deliver new
features and keep the core as stable as possible. The Web Application Server contained all the
capabilities of SAP Basis.
As a result of marketing changes and changes in the industry, new versions of SAP have been
released. The first edition of my SAP ERP was launched in 2003 and bundled previously
separate products, including SAP R/3 Enterprise, SAP Strategic Enterprise Management
(SEM) and extension sets. The SAP Web Application Server was wrapped into Net Weaver,
which was also introduced in 2003.
A complete architecture change took place with the introduction of my SAP ERP edition
2004. R/3 Enterprise was replaced with the introduction of ERP Central Component (SAP
ECC). The SAP Business Warehouse, SAP Strategic Enterprise Management and Internet
Transaction Server were also merged into SAP ECC, allowing users to run them under one
instance. Architectural changes were also made to support an enterprise service architecture
to transition customers to a services-oriented architecture. SAP HANA which is a
combination of In-memory software and hardware can improve data processing at extremely
high speeds.

Merits and Demerits of ERP

Advantages

Allows easier global integration (barriers of currency exchange rates, language, and
culture can be bridged automatically)

Updates only need to be done once to be implemented company-wide

Provides real-time information, reducing the possibility of redundancy errors

May create a more efficient work environment for employees

Vendors have past knowledge and expertise on how to best build and implement a
system

User interface is completely customizable allowing end users to dictate the

operational structure of the product.

Disadvantages

Locked into relationship by contract and manageability with vendor - a contract can
hold a company to the vendor until it expires and it can be unprofitable to switch vendors
if switching costs are too high

Inflexibility - vendor packages may not fit a company's business model well and
customization can be expensive

Return on Investment may take too long to be profitable

Implementations have a risk of project failure

SAP Architecture

SAP Recent Software

SAP software development
SAP 4.6c->SAP 4.7->SAP ECC5.0->SAP ECC6.0

Creation of Company
Company is nothing but a client to whom we are going to implement in SAP. It represents a
corporate group. It is the highest organization unit in enterprise structure. Company name
APS technology.
Path- SPRO-SAP reference IMG-Enterprise structure-Definition-Financial AccountingDefine Company-New entries

Company Code
It is an independent organization unit that represents subsidiary of company. One company
can have many company code.
Path- SPRO-SAP reference IMG-Definition- Financial accounting- Edit, copy, define and
check company code- Edit company code data- New entries. Company code is C032.

Chart of Account (COA)

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It is list of GL accounts master records that are used by the organization. A chart of account
must be assigned to each company code.
Path-Chart of account- Name- Maintain language- GL account- Controlling IntegerConsolidation- Starts. COA is C032.

Then we have to assign the respected company code to Chart of account.

Account Group
It is used for consolidation purpose. We have to define all kind of GL accounts like asset,
liability, Income and expenditure with different number ranges.
Path- SPRO-SAP reference IMG- Financial accounting- General ledger accounting- G/L
accounts- Master data- Preparation- Data account group- New entries.

Retained Earnings Account

It is used for carry forward the balance. There may be more than one retained earning account
but one is mandatory.
Path- SPRO- SAP reference IMG- Financial accounting- General ledger accounting- G/L
accounts- master data- preparation- Define retained earning account- Enter chart of accountC032.

Field Status Variant

It comes true fields or the documents posted to a G/L account. Field status group is
mandatory. To specify field status or suppress design required. Field status variant is pr01.
Path- SPRO- SAP reference IMG- Financial accounting- General ledger account- Business
transaction- G/L account- Make and check document setting- Define field status variantEnter field status variant key.

To view the list selected in field status variant double click on field status group.

Assign Company Code to Field Status Variant

We have to assign the company code to created field status variant.
Path- SPRO- SAP reference IMG- Financial accounting- G/L accounts- Business transactionG/L account position- Business transaction- G/L account posting- master document settingAssign company code.

New General Ledger Account

We have to enter G/L account specific to the series in general chart account. For each and
every series of G/L account.

Code s FS00
Give company code.
Select create button.
Select account group in group chart account.
Select the account comes under P/L statement and balance sheet.
OB-GLACC12- To display ledger.

Check the List of Account

Transaction code- S_ALR_87012332

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Company wise Detail

To show the details of entry in GL account. Transaction code OB_GLACC12- company code

Define Business Area

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To specify the business related area of the company

SPRO- SAP reference IMG- Enterprise structure- Definition- Financial Accounting- Defne
Business area.

Fiscal Year
It is the time period which is used to prepare the different financial statement of the company.
Its also called as financial year/ Budget year. It can as per the calendar year or companys
own business rule.
It consists of 12 required posting period and 4 special period for audit or tax purpose
depending upon the quarterly or semiannually entry. In India Fiscal year is from 1 st of April to
31st March. For the fiscal year FY15 structure is as follows. If we consider todays date 25 th
oct 2014 the structure is
MONTH
S
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC

M.NO
1
2
3
4
5
6
7
8
9
10
11
12

DAYS
31
28
31
30
31
30
31
31
30
31
30
31

PERIODS IN
SAP
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12
1
2
3
4
5
6
7
8
9
12

YEAR
SHIFT
-1
-1
-1
0
0
0
0
0
0
0
0
0

Path- SPRO- SAP reference IMG- Financial Accounting- Financial Accounting Global
setting- Fiscal year variant- New Entries. Code generated ET.

Assign Company Code to Fiscal Year

We have to assign company code C032 to the created fiscal year.

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Path- SPRO- SAP reference IMG- Financial accounting- Financial accounting Global settingFiscal Year- Assign company code to fiscal year.

Posting Periods
It is used to define which periods are to be define for posting purpose
Path- SPRO- SAP reference IMG- Financial accounting- Financial accounting Global settingDocument- Posting periods. Posting period variant is APS.

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Open and Close Periods in Posting Periods

Path- SPRO- SAP reference IMG- Financial accounting- Financial accounting Global settingDocuments- Posting periods- Open and close posting periods- New entries.

Assign Company Code to posting period Variants

We have to assign the posting period variant APS to our company code C032.
Path- SPRO- SAP reference IMG- Financial accounting- Financial accounting Global settingDocuments- Posting periods- Assign variants to company code-position- Give details.
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Document Type and Number Range

Document range is defined as specific intervals with in which documents can be created. It
depends upon the company code and valid for fiscal year.
Path- SPRO- SAP reference IMG- Financial accounting- General ledger accountingBusiness transaction- G/L account posting- make and check document setting- Define
document type- new entries. Document type is 1P.

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Number Range

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Tolerance Group
Tolerance group should be created for G/L account
Code is OBA0
Path- SPRO- SAP reference IMG- General Ledger accounting- Business transaction- Open
item clearing- clearing difference- Define tolerance group for G/L accounts.

Assign Tolerance Group to Company

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Global Parameter
Path- SPRO- SAP reference IMG- Financial accounting- Company Code- Enter Global
Parameter.

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Financial Statement Version

Hierarchical arrangement of G/L account. It is used to create financial statements, to run
variable report, as basic plan to general ledger accounting.
Path- SPRO- SAP reference IMG- Financial accounting- General ledger account- Business
transaction- Closing period- Documents- Define financial statement version- New entries.

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Documents Splitting
Code is FB50
Path- SPRO- SAP reference IMG- FA new- G/L account New- Business transactionDocument splitting- Classify G/L account.

Documents/ Voucher Entry

Here we will do all type of entry before report generation
Code id FB50

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Reports

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Conclusion and Limits

We got the clear idea how companys different division works in real time and how
transaction occurs.
Though it is bit expensive but flexible and scalable.
It is integrated and co-related.
It exhibits three- tier distribution model and supports multi-currency and multilanguage.
Due to insufficient time we are not able to complete other parts of FI- module like
account payable and account receivable.
Since we were doing with online software chance of data duplication and missing was
there.

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