FICO

Configuration
Document
Step by step FICO configuration docume
Part-3
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Next- Click on Bank accounts on the left.

Click on new entries

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Enter the house bank that you created in the previous step and enter an accoud ID.
An accound ID further breaks down a House bank. E.g. You can have one account ID
for Check and another for Wire.
Enter the bank account number, the currency and the G/L account.

If SAP gives you an error that the G/L account doesn't exist, go to FS00 and create a
G/L account.

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and go back and save.

Click on no when it asks you if the IBAN should be transported.

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The final step is to setup the bank determination.

Note- You have to setup the House bank first and then come back to the bank
determination.
You will see the House bank is listed last, but the bank determination needs to be your
final step.
Click on bank determination to get started.

Select your copmany code and click on the options available on the left.

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Click on new entries

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Add the following

Payment method-Enter all your payment methods over here.
Currency- Enter the currency in which you will be making the payment methods.
Rank Order- Enter 1 if the same payment method doesn't appear in more than one
house bank.
When the payment program (F110) runs, the system tries to determine which house
bank it needs to make the payment from.
Eg.. if you are paying by check and the payment method C is listed in House bank as
well as House bank B, the system needs to know which house bank it needs to use to
make this payment.
If you define the ranking order as 1 for House bank B, the sytem will always use House
bank B to make the payments and only use House bank A if there aren't enough funds
available in House bank B.
House bank -Enter the house bank that this payment method belongs to.

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Bank Accounts- The next step is to click on Bank accounts ( on the left)
Click on new entries and add the following
House bank-The house bank that you added in the previous step.
Payment method- The payment method added in the previous step.
Currency- The currency you added in the previous step.
Account ID- Enter the account ID that you configured in the House bank step. Each
House bank could be further broken down by an account ID. E.g. you have one called
checks that is mapped to account 123456 and another called wire that is mapped to
67890
Bank subaccount- This is the clearing account that the system will use when you are
paying using a payment method corresponding to it.

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Available amounts- Enter the House bank, account ID , days and currency.
Enter 99999999 as the avaialable for outgoing payments value.
Enter 999 in the days field
Click on save and you are done.
You should be able to run your payment program now.

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Terms of Payment

Terms of payment dictate how quickly we need to pay the vendor e.g.do we need to pay
within 30 days, 60 days or immediately
Do we get a discount for paying within a certain time frame.
Whatever the terms you have negotiated with the vendor, need to be created in there.
Follow the menu path below to create a new terms of payment and to view the SAP
defined terms of payment.

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Click on execute and view the standard payment methods.

before creating a custom method, check if there is a standard method that is available.

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Double click on any payment method to view the details of it.

The description of a payment method should reflect how it is setup.
E.g. 0002 shows us a few things
1- Customer- If you check this box, it tells the system that this payment term can be
used for a customer.
2- Vendor- If you check this box, it tells the system that this payment term can be used
for a vendor.
3- Default for baseline date-The default for baseline date determines how the system
calculates the baseline date.
The baseline date determines the start date for calculating the discount date.
E.g. if you create an invoice in the system with a document date of 1/1/2018 and a
posting date of 1/5/2018 and if your payment terms provide you with a discount of 5% if
you pay within 30 days, from what date should the system calcualte the 30 days?
Should it be from the document date or invoice date etc.
We mostly use the document date to calcualte the baseline date.
4- Payment terms - Here you specify the terms. E.g. if you pay within 14 days, you get
a 2% discount and the entire invoice is due within 30 days.

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You can copy a payment method and create a custom one if required.
The payment terms show up when you are creating a vendor invoice.

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Asset Accounting configuration

Asset Accounting is a very popular submoduel in FICO. It helps a company manage its
fixed assets.
Asset accounting involves creation of fixed assets, depreciating them, trasnfering assets,
retiring them etc.
The asset accounting module syncs with the G/L module.
the first step in configuring is to setup a chart of depreciation.
Create a chart of depreciation using the menu path below

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Click on copy reference Chart of Depreciation

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Click on the copy icon

Enter thr chart of depreciation you are copying from. You can use a standard SAP
delivered chart of depreciation and enter the to company code which is your new chart
of depreciation.

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You will see a message which shows the new chart of depreciation.

Click on enter. You will see on the completed activites, chart of depreciation copied to
1000.

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next go back to the next step, specify description for chart of depreciation.

Change the description of the chart of depreciation.

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Depreciation Areas

A chart of depreciation is the highest level under asset acounting.

The depreciation areas are assigned to a chart of depreciation.
Create new depreciation areas by going back and selecting the next option of
copy/delete depreciation areas.

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You will see a list of depreciation areas that were copied when you copied the chart of
depreciation.
Area 1 is the one that posts to the G/L. The rest of the ones are for tax reporting i.e.
there is no actual posting to the G/L. The values are just calculations.

Double click on a depreciation area to view its details.

For book area 01, you will notice that the posting in G/L is set to Area posts in Realtime.
Do a drop down and explore the other optinos.
Under value maintenance, you can specify what types of values are allowed for this
depreciation area.

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Compare this with the tax depreciation areas.

Create your own depreciation areas based on your client's requirements.

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Assign chart of depreciation to company code

You should be used to creating something and then assigning it in the next step by now.
After creating the chart of depreciation, you have to assign it to your company code.

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Enter your chart of depreciation next to the company code and click on save.

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Number range assignment

Next- assign the company code from where the number range will be picked up for this
company code.
Enter the same company code that you created.

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Asset classes

Asset classes are used to group assets together. E.g. you can have one asset class for
vehicles, one for buildings etc.
Each asset class can have different fields show up on the asset master( simialr to the
field status group setting of G/L) and the asset classes can be linked to a different
number range so you can easily differentiate between them just by looking at the asset
number.
Click on define asset classes using the menu path below.

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You will see the existing asset clases.

Select an asset class and click on the copy icon to create your own asset class.

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Enter the new class value and description.

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Account determination- This determines the G/L mapping for this asset class. The
account determination is linked to G/L accounts in AO90. The asset acquisition account,
retirement account etc. are entered in here.
This field determines which account determination this asset class is linked to.
Generally each asset class will have its own account determination. In some cases you
can share one account determination across many asset classes.
Screen Layout Rule- The screen layout rule is like the field status group for G/L
accounts. This controls which fields appear on the screen for this asset class. You can
make the fields optional required or suppressed.
Each asset class can have its own screen layout rule or if the requirement is the same
for all the asset classes, then you can use one screen layout rule for all.
Click on Save and your new asset class is setup.

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Account determination

As explained in the previous step, the account determination ties an asset class to the
G/L accounts.
In AO90 you link the account determination to various accounts.
If you are creating a new asset class, you may need to create a new account
determination as well.
Create an account determination by following the menu path below.

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Copy an account determination by selecting it and click on the copy icon.

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Enter the new value and description.

Have a good naming convention for this. This could be the same number as the Asset
class or you can have another number but make the number consistent, so if you want to
look up the G/L acount info for an asset class, you can easily tell what the account
determination for an asset class is by looking at the asset class number.
E.g if the asset class is 12000, the account determination can also be 12000 or it can be
z1200 so if you find another asset class as 11000, you can easily tell that the account
determination is 11000 or z1100.

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Screen Layout rules

Screen layout rules are like the field status groups for an asset.
This controls which fields appear on the asset master.
Create a screen layout rule by going through the menu path below.
Note- if you are creating a new asset class, you can either create the asset class and
assign dummy values in the screen layout rules and account determination and then go
back and update them after you create the account determination and screen layout
rules or create the screen layout rules and account determination first and then create
the asset class.

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Copy an existing screen layout rule by clicking on the button the next and click on the
copy icon.

Enter the new values for the screen layout rule along with a description and clic on save
to create the new screen layout rule.

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Update the asset class

This step is required if you initially setup an asset class with dummy values.
Go back and update the asset class with the new screen layout rule and account
determination

Double click on your asset class

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and update the new values

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Ao90- How depreciation posts to the G/L

In this step, you link your Account determination to G/L accounts. Basically, this step
determines what is your G/L when depreciation posts for Asset class trucks, which is
the account that SAP should post to when you retire an asset.

Note- There is no direct relationship between an asset class to a G/L account.

An Asset class is linked to an Account determination and the account determination is
linked to a G/L account.
Use the path below or use the tcode A090.

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Select the chart of depreciation from the right of the screen and click on Account
determination on the left.

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You will then see the list of Account determinations that you created for this depreciation
area.
Select the account determination for which you want to assign G/L accounts and click on
Balance sheet accounts field to assign the acquisitions account etc. and click on the
Depreciation field to assign the depreciation account.

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Once you click on Balance sheet accounts you will see this list which shows you the
accounts that you can enter.
Enter the Balancce sheet APC- This is the account that SAP posts to when you post an
acquisition.
Enter an account in the retirement section.
Save after entering this.
You can come back to the rest of the accounts if you are getting an error message. The
error message will tell you that the account is not found.

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Once you are done with entering the Balance sheet Accounts, click on the depreciation
tab and enter the depreciation values.
Enter the Acc. dep account for ordinary depreciation- This is the account that the
accumulated depreciation gets posted to .
Expense Account for ordinary depreciation- This is the expense account that gets hit
when you run depreciation.
These are the two important accounts that get hit when you run depreciation.
You can come back to the rest when you get an error message. E.g. if you run
unplanned depreciation, SAP will give you an error message as there is no account that
it can post to.
I prefer getting more errors while learning as that helps you relate an error message to
a place in configuration.

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Assign tax indicator for non taxable transactions.

This is a mandatory step- Enter a tax indicator and hit save.

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Specify document types for depreciation postings

When you post depreciation, the system will use a document type. This document type
has settings that we covered earlier. The tcode for maintain a document type is OBA7.
Click on execute in the menu path below.

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Click on Define document types if you want to go back to OBA7 where you define all
document types.
Click on Specify Document type for posting of depreciationto assign a document type for
depreciation posting.

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The standard document type AF is generally used for this purpose. Enter the document
type AF next to your company code and click on save.

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Creating a depreciation key

A depreciation key is the most important step in Asset accounting. This determines how
the asset depreciates.
Depreciation is the reduction in the value of an asset.
The depreciation key determines how the asset depreciaties.
There are various steps in the creation of a depreciation key. Let's go to one of the
steps
Define Base methods

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A base method is assigned to a depreciation key. It contains functions like is this used
for normal depreciation or special depreciation. What is the dep method and so on.
SAP has a lot of standard depreciation keys. Please see if the standard ones meet your
requirement before you create a custom one.
Your business will give you the requirements of a depreciation key and you can ask them
questions based on what you see in the configuration screens before proceeding with
creating it.
After you click on execute, you will see a list of methods.

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Double click on any base method to see the settings it has. The text here gives you a
good idea of how this base method operations.
E.g. in base method 0012, you specify a percentage.
In base method 001, SAP calculates a percentage from useful life and so on.

Base method 0011

Type of depreciaiton -Do a drop down to see the types of depreciation, ordinary
depreciation, special depreciation etc.
Dep method - Here you pick whether this is percentage from userful life, explicit
percentage etc.
Initially, when you are getting started, you don't have to know what each and every box,
drop down does. Start with a standard key and then create a custom one and change
one of the settings and see how it impacts the depreciation that you post.

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Declining balance methods

Delclining balance methods controls how depreciaiton is calcualted. E.g. if an asset is

worth 10,000 and it depreciaties 10%, then the depreciation would be $1000 after 10
months, but if the depreciation key has a double declining method, then it will be
$1000*2.
Many of the tax depreciation keys are set to double declining etc.
When you et a request from the business to setup a tax key, they will specify if there is
no declining balance, double decline etc.
Click on execute from the menu path below to access the Declining balance methods

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Here you can see the decimal factor, this controls the value with which the depreciation
gets multiplied.
in our previous example, we discussed how an asset gets assigned a double declining
method. You would select the declining balance method 002 as it has a declining factor
of 2. SAP will multiply the depreciation by 2.
If you don't want any declining balance method, then select the first method. This is
mainly used for book area 01( the one that posts to the G/L)

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Declining balance methods

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A multi level method controls other factors of a depreciation key e.g. should it start
depreciation from the acquisition value or the netbook value etc.
You can assign many levels to this method. Here you specify how the depreciation
works in year 1, 2 etc.
You can have different percentages for every year.
Click on execute and you willl all the multilevel methods.

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