Definition: dunning area

1.What is Dunning area where it will represent?

An organizational unit within a company code from which dunning is conducted.
The dunning procedure is controlled and the dunning notices are sent separately per dunning area. A
dunning area can represent the following:

Division

Distribution channel

Sales organization

Business area

Use
If different responsibilities or different dunning procedures exist within a company code, you can set up
corresponding dunning areas.
All dunning notices are made separately according to dunning areas , and if necessary with different
dunning procedures.

Dependencies
The dunning area must be noted in the line items. As long as documents are copied from preliminary work
areas (billing documents), the dunning area can be derived from details such as division or sales area, if
necessary.
2.When can we use Dunning area?
Dunning areas are used when several organizational units are responsible for dunning within a company
code (these organizational units are known as dunning areas). The dunning area can represent a division,
a distribution channel, a sales organization, or a business area.
Q. What are the different steps that are configured in Dunning procedure?
A pre-defined procedure specifying how customers or vendors are dunned.
For each procedure, the user defines

Number of dunning levels

Dunning frequency

Amount limits

Texts for the dunning notices

Q. What are different fields that a customer master data screen contains under correspondence?
Dunning procedure, dunning receiptent, last dunned, duncheck, dunning block, dunning level, grouping key,
Dunning areas, Legal Dunning procedure.
Q. What a grouping key represents in setting dunning steps in customer master?
The grouping key represents a rule according to which the open items of the account are to be grouped
together for dunning notices.
You must define one field from the open items for each grouping key. All items which have the same
contents in this field are then grouped together in a single dunning notice. With credit memos, ensure that
the contents in this field match those in the same field in the invoice; if this is not the case, the items will
either be included in a different dunning notice or will not be dunned at all.
Example:
If you install Financial Assets Management, you can define a rule which creates a separate dunning notice
for every rent object.

3.What is Company Code?

The company code is the smallest organizational unit in Financial Accounting for which a complete selfcontained set of accounts can be drawn up for the purposes of external reporting.
4.What is Line Item and what it controls?
The part of a document containing information on a single item.
This information includes the:

Amount
Account number

Whether the item is a debit or credit

Additional information depending on the transaction to be posted

5. Define Sales area?

A combination of sales organization, distribution channel, and division.
6. What is division and division category?
Company-internal key for the division category that is predefined by the Utilities Industry (IS-U) component.
One or more divisions are allocated to the division category.

For example, a utility company might divide the division category water into drinking water and waste water.
Q. Define receivables and what are the subdivisions of receivables?
A claim for payment on the recipient of goods or services supplied.
Receivables are shown in the balance sheet under current assets.
subdivisions, such as receivables from goods and services and receivables from consolidation companies.
Q.What is Accounting document what happens if a accouting document is posted?
The accounting documents record changes in values in a company code arising from accounting
transactions.
When posting an accounting document, the SAP system updates the transaction figures in the accounts to
which the document is posted.
An accounting document is a representation within the SAP System of the document (for example, an
invoice) that triggered the posting
Q. What is Screen variant Why it is used?Examples
In some cases screens with country-specific features are needed when entering accounting documents.
You determine which screen variant is to be processed per company code.
ScrV 1 for Austria and Switerzerland
ScrV 2 France and countries with withholding tax
Q What is use of Workflow variant?
To group together several company codes. You must define the same local currency for the company
codes assigned to this workflow variant. This local currency must correspond to the currency of the workflow
variant.
Q. Define ?
A type of profit and loss statement that matches the sales revenues to the costs or expenses involved in
making the revenue (cost of sales).
The expenses are listed in functional areas such as:

Manufacturing

Management

Sales and distribution

Research and development

Cost of sales accounting displays how the costs were incurred. It represents the economic outflow of
resources.
Q. What is the use of maintaing functional area?
Functional central organizational unit for Cash Budget Management and Funds Management.
Financial Management areas subdivide an organization into units in which you can conduct independent
cash budget management and independent funds management.
An FM area is an organizational unit which plans, controls and monitors funds and commitment budgets
Q. Can a Company can have more than one company code

A company can consist of one or more company codes. A company can consist of one or more
company codes.
All company codes within a company must use the same transaction chart of accounts and the same fiscal
year breakdown. The company code currencies can be different.
A company has one local currency in which its transaction figures are recorded

Q. Why should one company will have one company code?

For consolidation purposes, a company can only be assigned one company code.
Q. What is credit control area. How it is defined?
The credit control area is the organizational unit that contains all of a customers receivables. You can also
define the credit control area on a cross-company code basis. This means that you can track the customer
credit that has been granted outside a company code, in other words, outside the legally independent unit
The credit control area is an organizational entity which grants and monitors a credit limit for customers. A
credit control area can include one or more company codes.
You can also enter the credit control area separately for each posting, if this was marked in the appropriate
company code.
When entering an order, the credit control area can also be determined from the business area and the
sales area segement of the payer's master record or using a user exit.
It follows that company codes and credit control areas are not linked.
The only thing that you define in the company code table is the default credit control area. This is used either
for payments on account to credit these payments, or where you did not enter a credit control area or the
system could not determine one.
There is also an allocation table of permitted credit control areas per company code which is used to check
entries only

Q.What are the different types of chart of accounts?

Three types

Operative chart of accounts

This chart of accounts must be assigned to each company code. This chart of accounts is the operative
chart of accounts and is used in both financial accounting and cost accounting. Other charts of accounts
include:

Country-specific charts of accounts -

These are structured in accordance with legal requirements of the country in question
Group chart of accounts -

This is structured in accordance with requirements pertaining to Consolidation

Q. What are determinants of Account Group
In which number range the customer account number should be;

whether the number is assigned by the user or by the system;

which specifications are necessary or possible in the master record.

Q. Can we change bank account number length, Account Key length etc,
Yes path is

-> General settings

-> Set countries
-> Set country-specific checks
Q. For which type of document entries reference document number is necessary

The reference document number has been specified as a required entry field for the
following document types:
Type
Reference document number
Required during document
entry
DA
X
DG
X
DR
X
DZ
X

Q. Can we define tolerance groups for GL accounts what is the use

Yes, When G/L accounts are cleared, tolerance groups are used to define limits within which differences are
accepted and posted automatically to predefined accounts. The groups defined here are assigned in the G/L
account master record.

Validation in Accounting Documents T Code OB28

In this activity, you define additional checks for accounting documents in the form of validations for each of
your company codes. You can assign a validation for the document header and one for the line items to
each company code. The assigned validations are valid both for manual entry of documents as well as for
the automatic creation of documents (for example, payment program).
For every company code to which you want to assign a validation, you store the following information:

Validation callup point

Here you enter key "1" for "Check document header" and key "2" for "Check line item".
Validation

Here there are the names of validations which already exist which you can display or change. A
new validation must firstly be created by you. Afterwards the name appears in the overview.
Description of the validation

Activation level
Here you enter key "0" for inactive, key "1" for active and key "2" for active except for batch input.

Example
For example, you can use the validation for the following situation: You want to make sure that postings to
the expense account "Telephone costs" can only be posted to the services cost center "Telephone". You can
carry out the checks needed for this by using the validation.
Activities
If you want to define new validations, go through the following activities:
1. Place the cursor on a line in which company code and callup point are entered (you can enter
company code and validation callup point via Edit -> New entries).
2. Afterwards select Environment -> Validation. You reach the first screen for maintaining a
validation.
3. Select Validation -> Create. Enter the required name. After pressing ENTER, you come to an
overview screen of the validation activities belonging to the validation.
4. Select Insert entry. On the next screen you can describe a new validation activity. You describe
the check requirements and the actual check for this. The syntax to be used for this is described in
the online help (F1 help) for the input fields for Requirements and Check. You can also define a
message (warning or error message) which is sent if the check is not successful.
If you want to change validations which already exist, proceed as follows:
1. Place the cursor on an already existing entry and select Goto -> Validation.
2. On the next screen select Validation -> Display or Validation -> Change . After pressing ENTER,
you get to the overview screen of the validation activities belonging to the validation. If you select
Insert entry, you can carry out changes if necessary.

Q. What is the importance setting Max Exchange Rate difference?

Permissible exchange rate deviation for postings in foreign currency.

Use
For postings in foreign currency, you can specify the exchange rate in the document header . In this case,
the system carries out a comparison with the exchange rate table. If the system finds a deviation which
exceeds the percentage rate specified here, then a warning message is given. In this way, incorrect entries
can be recognized and corrected in time

Q.What is validation?

Definition: validation
Meter Reading (IS-U-DM-MR)
Test of meter reading data for plausibility before it is entered into the system. Data is validated using fixed
values, such as zero consumption or number of meter readings by customer and automatic estimations.
Data can also be validated based on expected consumption, such as in the case of tolerance limit
validations.
Validations are divided into the following categories:

Independent

Dependent

Special Purpose Ledger (FI-SL)

The process of checking values and combinations of values as they are entered into the SAP System.
Entered values are checked against a user-defined Boolean statement (this is a prerequisite). If the
statement is true, the SAP System validates the data using a second Boolean statement (as a check). If the
check statement is true, the SAP System posts the data. If the checkstatement is false, it issues a userdefined message. Depending on the message type, the posting may be blocked.
Validation occurs before the data is posted, so that only valid data is posted.

Cross-Application Components (CA) (FI-SL/FI-LC/EC-CS)

Process of checking values and combinations of values as they are entered into the SAP R/3 System.
Entered values are checked against a user-defined Boolean statement (prerequisite). If the statement is
true, the system validates the data using a second Boolean statement (check). If the check statement is true
, the system posts the data. If the check statement is false, the system issues a user-defined message.
Depending on the message type, the posting may be blocked.
Validation occurs before the data is posted so that only valid data is posted.

Consolidation (FI-LC)
The process of checking values and combinations of values as they are entered into the SAP System.
Entered values are checked against a user-defined Boolean statement (this is a prerequisite). If the
statement is true, the SAP System validates the data using a second Boolean statement (as a check). If the
check statement is true, the SAP System posts the data. If the check statement is false, it issues a userdefined message. Depending on the message type, the posting may be blocked.
Validation occurs before the data is posted, so that only valid data is posted.

Consolidation (EC-CS)
A process of checking values and combinations of values as they are entered into the SAP System.
Entered values are checked using a user-defined Boolean statement (this is a prerequisite). If the statement
is true, the SAP system validates the data using a second Boolean statement (as a check).

If the check statement is true, the system posts the data.

If the check statement is false, the system displays a user-defined message.

Whether the entry can be posted depends on the message type.

Validation occurs before the data is posted so that only valid data is posted.

Marketing (CRM-MKT)
Trade Promotion Management process: Checking and validation of adherence to the given agreements in
the context of a trade promotion. Physical checking that an agreed-to activity took place.

Accounts Payable Down Payments

Use
The following settings have been made in Customizing for the down payments received:
1.
1.1

Down Payment Requests

Properties

Fields

Contents

Account Type

K Vendors

Special G/L Ind.

F Down payment request

Noted Item
Rel. to Credit Limit
Commitments Warning
Target Sp. G/L Ind.

AIMB

Debit

29 Down payment request

Credit

39 Down payment request

1.2

Account Assignment

Chart of accounts: IKR (Chart of accounts - industry)

Account type: K (Vendor)
Special G/L indicator: F (Down payment request)
Recon. Acct
Special G/L Account
Planning Level
440000
230100
FF
440010
230100
FF
445000
230100
FF
445010
230100
FF
2.
Down Payments
2.1
Properties
Fields
Contents
Account Type
K Vendor
Special G/L Ind.
A Down payment
Noted Item
Rel. to Credit Limit
Commitments Warning

Target Sp. G/L Ind.

Debit
29 Down payment
made
Credit
19 Reverse down
payment
2.2

Account Assignment

Chart of accounts: IKR (Chart of accounts - industry)

Account type: K (Vendor)
Special G/L indicator: A (Down payment)
Recon. Acct
Special G/L Account
Planning
Level
440000
230000
FF
440010
230000
FF
445000
230000
FF

Input Tax
Clearing
A
A
A

Input Tax Clearing

-----

445010

3.

230000

FF

Other Special G/L Transactions

Except for the special G/L account and the indicator for tax clearing, the settings for the
other special G/L indicators have been made in the same way as for indicator A:
Special G/L Ind.
Special G/L Account Planning
Input Tax
Level
Clearing
B
170000
FF
B
I
040000
FF
I
M
090000
FF
M
O
448000
FF
O
V
230000
FF
V
4.

Tax Clearing

Chart of accounts IKR (Chart of accounts - industry)

Transaction VVA (Input tax clearing on down payments)
Special G/L
Tax clearing
Account
indicator
A
230290
B
170090
I
040090
M
090090
V
230090
5.

Posting Keys for Incoming Invoices/Credit Memos - ENJOY

The standard posting keys 29 and 39 have been defined for transaction EGX (Vendor
item with special G/L indicator).