Configuration Steps

ENTERPRISE STRUCURE
An enterprise structure is the structure that re
Enterprise structure in SAP is an organizatio
It consists of some organizational units of diffe

What is enterprise structure elements?

These elements are: departmentalization - work spec

Company

Com Code To Generate Fincial Statements like Profit and Loss B

Company code is an independent organizational unit

Assign Com. Code. To Company individual financial statements like profit & loss acco

Business Area Business are represent sperate areas of operation or

Under business area you generate Finacial statement

Define Charts Of Accounts Chart of ac is nothing but the list of genrel ledger acc
A chart of accounts is a structure containing the G/L a
You need to assign a chart of accounts to each compa
Assign Charts Of Accounts to Company Code

Define Account Group An account group is a segregating or group

Retained Earnings Account

Define Fical year variant (Financial Year)

Fiscal Year in SAP is the way of Finacial Data
fiscal year contains total 16 posting periods, ou
Define Fical year variant to Company Code Indian companies follow fiscal year from April to M

Define Posting Period Variant

Fiscal year Posting Period is Period for which tranascti
Assign Posting Period Variant to Company Code

Define Open and Close Period

Define Field Staus Variant

filed status groups control the fileds which come up w
Through field status group, one can define a field as o
 filed status groups control the fileds which come up w
Through field status group, one can define a field as o
Assign Field Staus Variant to Company Code

Define Document Types

Define Number Range

Copy Company Code (Document Types)

Copy to Fiscal Year (Document Types)

the document splitting is the most powerfu
Document Splitting “Characteristics”
we define in system.
Tolerance Groups for Employees

Assign Users to Tolerance Groups

Return GL Process

Reversal Reason Configuration

ucture is the structure that represents an enterprise in the SAP
ure in SAP is an organizational diagram that shows how the whole group is mapped in SAP.
e organizational units of different modules.

tructure elements?
departmentalization - work specialization - chain of command - centralization or decentralization - span of control

Statements like Profit and Loss Balance sheet etc Company Code is used

independent organizational unit. Under company code you can generate

statements like profit & loss account and balance sheets. plants -sales organisation - purchase organisation assing to the company code

ent sperate areas of operation or location within an organizatin and can be used across compay codes…
you generate Finacial statements balance sheet and profit loss account for internal reporting. Eg Ahmedabad, mumbai

g but the list of genrel ledger accountn

s a structure containing the G/L accounts used by one or more company codes. ...
a chart of accounts to each company code.

p is a segregating or grouping the similar accounts in to single group. Each account group in SAP is assigned to

P is the way of Finacial Data Stored in the system

s total 16 posting periods, out of these 12 are normal posting periods and 4 are special posting periods. ...
ollow fiscal year from April to March with 12 normal posting periods and 4 special periods.

eriod is Period for which tranasctions figures are upadted.The Posting Period Varients in SAP is accountable to control which accounting

ontrol the fileds which come up when user does the transctions
group, one can define a field as optional, suppressed, or mandatory.
ontrol the fileds which come up when user does the transctions
group, one can define a field as optional, suppressed, or mandatory.

plitting is the most powerful tool is widely and most commonly used. With this function the document splits t
”
tem.
 SAP.

of control

n assing to the company code

bad, mumbai

oup in SAP is assigned to a chart of accounts

periods. ...

le to control which accounting period is open for posting

on the document splits the line items based on the
GL Mater Data General Ledger (G/L) account are used to provide a picature of external accounting and ac

GL Park & Post

GL Hold Document

Document Reversal When an incorrect entry is posted in the SAP system, we have to reverse the same or pass

Recurring Entries Recurring entries are used when you have to create same entries every months or same en
Recurring Entries can elimante the need for mannual posting accounting documents which

Account Payable Account payble used to manage and record accounting data for all vendors. All invoices an
Paybles are mange as per payment program

Down Payment Down Payment is payment made or recived before the physical exchange of goods and Ser
Once the receipt delivery of goods or serivice occurs the dp clear aggainst final invoice

Automatic Payment

Account Receivable Account Recievable is Submodule of SAP FI Used to mange and record Accounting Data for
It Handels customer Invoices, Payments , approvals and Other Allied activites

Credit Memo (Credit Not)

TAX Procedure Every Country has list of different taxes which may be applicable on business tranaction in
country
for Each Country tax procedure is defined and tax code is defined within this, There is Flexi

Bank Reconsilation Bank Reconcilation in SAP Can be done with the help of two kinds of Bank Statements man
if it is manual statement then you need to enter the details of statement manually into SAP
if it is an elctronic statement you can just uplod statment to SAP.
Bank Reco is term that describe process of reconciation between account maintain by bank

Cash General Entry The Cash journal is subledger of bank accounting.it is used to mange a company's cash tran
The System automatically Calculates and display opening Closing balance and the reciept a
You can run several cash journals for each company code
 external accounting and accounts and record all the business Tranacstion in SAP System

to reverse the same or pass a rectification entry.

es every months or same entries on certain dates

ccounting documents which do not change from month to month

r all vendors. All invoices and deliveries as per vendor request .

l exchange of goods and Serivces like advance payment .

ear aggainst final invoice

d record Accounting Data for all customer .

Allied activites
 le on business tranaction in the country in SAP Country Spicify tax procedure created and assigned to

ed within this, There is Flexibalty to either expense out of tax amounts or captilse the same to stock

nds of Bank Statements manual and Electronic.

statement manually into SAP but
AP.
en account maintain by bank and account maintain by you

mange a company's cash tranaction.

ng balance and the reciept and payemnt totals.
1 What are the other modules to which ‘Financial Accounting’ is integrated?
Answer A) Sales And Distrbution
b)Materal Management
c)Human Resource
d)Production Planning
e) Controling of fincial Tranasction

2 In SAP FI What are the Organizatinal Elements ?

Answer A) Company Code
B) Business Area
C) Charts of Account
D) Funcational Area

3 Explain what is posting key and what does it control?

Answer IT it Determine the transaction Type which is entered in line item a two digit numberical is used known
A) Account type
B) Types of Posting. Debit or Credit
C) Field Status of Transction

4 What is the company code in SAP?

To Generate Fincial Statements like Profit and Loss Balance sheet etc Company Code is used
company code is an independent organizational unit. Under company code you can generate
individual financial statements like profit & loss account and balance sheets. plants -sales organisation
Answer organisation assing to the company code

5 How many Charts of Account Company Code Have ?

You Can Have one charts of account for one Company Code which is assigned
What is Group Charts of account ?
It is list of general ledger account's master data that fall under different account groups of company co
This Grouping machnisam helps to devlop better finacial reports.
What is Country charts of account ?
Country Charts of Accounts Contain G/L(General Ledger) accounts needed to meet countary Legal req
What is Oprational Charts of account ?
Answer it is used for day to day activitys.

6 For a Company Code how many currencies can be configured?

There are three currencies that can be configured for a company code, One is local Currency and two
Answer currencies

7 What are the options in SAP for Fiscal years?

 Fiscal Year in SAP is the way of Finacial Data Stored in the system

Fiscal year have 16 Posting Period .it consits 12 regular Posting periods and 4 Special posting Period
Answer which can be use for audit or tax adjusment for already closed Period

8 whats is General Ledger ?

General Ledger (G/L) account are used to provide a picature of external accounting and accounts and record all
Answer Tranacstion in SAP System

9 what is accounts receivable in sap fi ?
Account Recievable is Used to mange and record Accounting Data for all customer . It Handels customer Invoice
Answer approvals and Other Allied activites

10 What is Account Payble in SAP?

Account payble used to manage and record accounting data for all vendors. All invoices and deliveries as per ve
Answer Paybles are mange as per payment program

11 Recurring entries in SAP ?

Answer Recurring entries are used when you have to create same entries every months or same entries on certain date

12 Tax procedure in sap ?

Every Country has list of different taxes which may be applicable on business tranaction in the country in SAP Sp
Answer procedure created and assigned to country

13 Bank reconciliation in sap ?

Bank reconciliation is a term that describes the process of reconciliation between the account maintained by th
Answer account maintained by you.

14 what is cash Journal entry in sap  ?

The Cash journal is subledger of bank accounting.it is used to mange a company's cash tranaction. The System a
Calculates and display opening Closing balance and the reciept and payemnt totals. You can run several cash jo
Answer company code

15 What is down payment in SAP

Answer Down Payment is payment made or recived before the physical exchange of goods and Serivces like advance pa

16 what is Profit Center in sap ?

Profit Center is an organaztional unit in accounting that refelect mangment oriented starture of organazation fo
Answer internal control .Thease are resposible for cost and revenue

17 what is Cost Center in sap ?

Answer Cost Center is the organizational unit within a controlling area that represents a location where costs occur.

18 what is internal Order in sap ?

Answer internal order is used to accumate cost for specific project or task for specific time period.
19 What is Cost Element in SAP ?

Cost Element Classify an organazation's valued Consumtion of Production Factors within Controling area.
They provide information concerning the value flow and value consumption within the organization. A cost elem
Answer corresponds to a cost-relevant item in the chart of accounts.

20 In SAP how input and output taxes are taken care?

for Each Country tax procedure is defined and tax code is defined within this, There is Flexibalty to either expen
Answer amounts or captilse the same to stock

21 In SAP what is the use of FSV ( Financial Statement Version) ?

FSV ( Financial Statement Version) is a reporting tool. It can be used to extract final accounts from SAP like Profi
Answer Account and Balance Sheet.

22 What is a field status group?

‘Field status groups’ control the fields which come up when the user does the transactions.
Answer Through field status group, one can define a field as optional, suppressed, or mandatory.

23 What are the major components of Chart of Accounts?

Answer a) Chart of account key
b) Name
c) Maintain Launague
d) Length GL account number
e) Controling Intergration
f) Consolidation Group Charts of account
g) Block indicator

24 What is posting period variants?

Fiscal year Posting Period is Period for which tranasctions figures are upadted.The Posting Period Varients in SA
Answer to control which accounting period is open for posting

25 What is the purpose of “Document type” in SAP?

Answer The Purpose of Document type in SAP is
a) Number Range of documents are defined by it
b)Types of account that can be posted are controlled by it e.g Assets , Vendor , Customer , Normal GL account
c)it is Used for the reversal of Enteries

26 what Is business area at company code level?

Answer No. Business Area is clinet level which means other company codes can also be posted to the same business are

27 In SAP, Customer and Vendor code are stored at what level?

The Vendor and customer store at client level. It means that by extending the company code view any company
Answer customer and vendor code
28 What is a country Chart of Accounts?
Answer Country Charts of Accounts Contain G/L(General Ledger) accounts needed to meet countary Legal requiremnts

29 In SAP FICO what are the terms of payment and where are they stored?

Payment terms are created in the confugration and detrmine the payment due date for vendor/customer Invoi
Answer Stored on customer or vendor master record

30 What are one-time vendors?

one time vendor allows a dummy vendor code to be used on invoice entery and also infirmation which is usually
Answer data

In Accounts Receivable, what is the difference between the ‘Residual Payment’ and ‘Part Payment’ methods o
31 cash?
in Case of partial payment , all line items will remain as open items.
Answer residual payment the original invoice clear with payment and create a new open item for the differnacial amoun

32 Explain what is recurring entries and why are they used?

Answer Recurring Entries can elimante the need for mannual posting accounting documents which do not change from

33 What is Charts of account in SAP FICO?

The Charts of account assign to each company code. It is list of general ledger account's master data that fall u
Answer account groups of company code. This Grouping machnisam helps to devlop better finacial reports

34 What is Business Area in SAP FI?

Answer Business are represent sperate areas of operation or location within an organizatin and can be used across com

35 What is Conslodited Business Area in SAP Fico ?

Conslodited business area are organazation unit.Conslodited business area are formed for fixed area of activit
Answer with in company in other words conslidated business area is business sagment within company. Zone eg Gujara

36 What is Business Place in SAP FICO ?

The Business Place is an Organazation unit below company code level that is Premarliy used for reporting tax o
Answer purchases

41 What Is Controlling Area in SAP FICO

Controling Area is an organzation unit in an organzation.it represents as closed system used for cost accountig
controing area Contain one or more company code which can operates in different currencies. The Company co
Answer same operatinal charts of account
 43 What is Cost Center Accounting SAP FICO

Cost center lets you analyze overhead costs according where they were incurred within organaztion.in SAP Sy
create investment center in profit center Accounting Component (EC-PCA) You do this by assigning balance item
Answer account

44 What Is Diffrence Between Cost and Profit Center ?

The Main Differnce between two is that cost center only responsible for its cost while profit Center is responsib
Answer revenue and costs

45 SAP Full Forms

Answer Systems Applications Products in data Processing . found in 1972. xerox company first

48 What is T codein SAP ?

T-Code is Tranaction Code used whenever excuting particular task each funcation SAP ERP Has T -code

49 Enterprise Strucature
Answer 1) Company
2) Company Code
3) Charts of account
4) Business Area
5) Profit Center
6) Cost Center

50 differentiate between BSAD and BSID tables

when ever a document is completely cleared a entry is created in BSAD. till its open or partially cleared it will sta
Answer time document is created its present in BSID. when its cleared its removed from this and an entry is created in B
unting’ is integrated? what is document type is sap ?
Document type is nothing just voucher contaning item.
It is key that is used to classify accounting documents.
Suverals business transection can be indentify by documen

Recurringn entries examples?

Such as Rent-Insurance-Emis

Why we use Document Reversal in sap

When an incorrect entry is posted in the SAP system, we have to

em a two digit numberical is used known as posting key

heet etc Company Code is used

ompany code you can generate
alance sheets. plants -sales organisation - purchase

which is assigned

different account groups of company code.

ts.

ounts needed to meet countary Legal requiremnts.

ured?

ny code, One is local Currency and two are the parallel

ods and 4 Special posting Period
d

rnal accounting and accounts and record all the business

or all customer . It Handels customer Invoices, Payments ,

vendors. All invoices and deliveries as per vendor request .

ery months or same entries on certain dates

business tranaction in the country in SAP Spicify tax

tion between the account maintained by the bank and the

e a company's cash tranaction. The System automatically

payemnt totals. You can run several cash journals for each

hange of goods and Serivces like advance payment .

ngment oriented starture of organazation for the purpose of

epresents a location where costs occur.

r specific time period.

uction Factors within Controling area.
umption within the organization. A cost element

ithin this, There is Flexibalty to either expense out of tax

to extract final accounts from SAP like Profit and Loss

r does the transactions.

essed, or mandatory.

e upadted.The Posting Period Varients in SAP is accountable

s , Vendor , Customer , Normal GL account

can also be posted to the same business area.

nding the company code view any company code can use
eeded to meet countary Legal requiremnts

ored?

ayment due date for vendor/customer Invoice.They are

e entery and also infirmation which is usually store in master

ual Payment’ and ‘Part Payment’ methods of allocating

e a new open item for the differnacial amount

nting documents which do not change from month to month

eral ledger account's master data that fall under different

o devlop better finacial reports

an organizatin and can be used across compay codes…

ess area are formed for fixed area of activity or resposiblity

ss sagment within company. Zone eg Gujarat Maharshtra

el that is Premarliy used for reporting tax on sale and

s as closed system used for cost accountig purpose. A

ates in different currencies. The Company code must all use
were incurred within organaztion.in SAP System you can
C-PCA) You do this by assigning balance item in Charts of

e for its cost while profit Center is responsible for both its

972. xerox company first

ach funcation SAP ERP Has T -code

SAD. till its open or partially cleared it will stay in BSID. the
moved from this and an entry is created in BSAD
sap ?
voucher contaning item.
accounting documents.
can be indentify by document type.

in sap
d in the SAP system, we have to reverse the same or pass a rectification entry.
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