Ficustomisation Fixed

XYZ INDUSTRIES LIMITED
CUSTOMIZATION DOCUMENT
FINANCIAL ACCOUNTING
Table of Contents
1 INTRODUCTION.............................................................................................5
1.1 SCOPE OF THE DOCUMENT....................................................................................5
1.2 DOCUMENT OBJECTIVES........................................................................................5
1.3 DOCUMENT STRUCTURE.........................................................................................5
1.4 TARGET AUDIENCE...................................................................................................5
2 OVERVIEW OF THE PROPOSED SYSTEM..................................................6
2.1 ORGANISATIONAL STRUCTURES..........................................................................6

2.1.1 Client.........................................................................................................................6
2.1.2 Company Code..........................................................................................................7
2.1.3 Credit Control Area...................................................................................................7
2.1.4 Business Area............................................................................................................7
2.2 MASTER DATA.............................................................................................................7
2.3 INTERFACE WITH NON-SAP SYSTEM...................................................................7
3 CONFIGURATION FOR FI MODULE.............................................................8
3.1 ABBREVIATIONS USED.............................................................................................8
4 GLOBAL SETTINGS......................................................................................9
4.1 SET COUNTRIES..........................................................................................................9

4.1.1 Define countries........................................................................................................9
4.1.2 Set country-specific checks.......................................................................................9
4.1.3 Insert regions.............................................................................................................9
4.1.4 Define country codes...............................................................................................10
4.1.5 Country codes - telephone: Define exceptions........................................................11
4.1.6 Country codes - telex: Define exceptions................................................................11
4.2 CURRENCIES..............................................................................................................11
4.2.1 Check currency codes..............................................................................................11
4.2.2 Set decimal places for currencies............................................................................11
4.2.3 Check exchange rate type........................................................................................12
4.2.4 Maintain exchange rate spreads...............................................................................12
4.2.5 Define rounding rules for currencies.......................................................................12
4.2.6 Define conversion factors for currency conversion.................................................12
4.2.7 Enter exchange rates................................................................................................15
4.3 CHECK UNITS OF MEASUREMENT.....................................................................16
4.4 MAINTAIN CALENDAR............................................................................................16

Page 1 of 135
4.5 MAINTAIN CALENDAR FOR JAPAN.....................................................................17
4.6 MAINTAIN STANDARD SETTINGS FOR SAP BUSINESS WORKFLOW.........17
4.7 FIELD DISPLAY CHARACTERISTICS...................................................................17

4.7.1 Global field display characterisitics........................................................................17
4.7.1.1 Set global field display characteristics.................................................................17
4.7.1.2 Activate global field display characteristics.........................................................17
4.7.2 Make transaction-related field display characteristic settgs.....................................17
5 ENTERPRISE STRUCTURE........................................................................18
5.1 MAINTAIN GRAPHIC...............................................................................................18
5.2 MAINTAIN STRUCTURE..........................................................................................18

5.2.1 Definition................................................................................................................18
5.2.1.1 Financial Accounting...........................................................................................18
5.2.2 Assignment.............................................................................................................20
5.2.2.1 Financial Accounting...........................................................................................20
5.3 CONSISTENCY CHECK............................................................................................21
6 FINANCIAL ACCOUNTING..........................................................................22
6.1 FINANCIAL ACCOUNTING GLOBAL SETTINGS...............................................22

6.1.1 Company Code........................................................................................................22
6.1.1.1 Enter global parameters.......................................................................................22
6.1.1.2 VAT Registration Number (VAT Reg.No.)...........................................................22
6.1.1.3 Prepare cost of sales accounting..........................................................................22
6.1.1.4 Parallel Currencies...............................................................................................23
6.1.1.5 Set company code to productive..........................................................................23
6.1.2 Business Area..........................................................................................................23
6.1.2.1 Enable business area balance sheet......................................................................23
6.1.3 Fiscal Year...............................................................................................................23
6.1.3.1 Maintain fiscal year variant (maintain shortened fisc. year)................................23
6.1.3.2 Allocate company code to a fiscal year variant....................................................24
6.1.4 Document................................................................................................................24
6.1.4.1 Posting Periods....................................................................................................24
6.1.4.2 Document Number Ranges..................................................................................25
6.1.4.3 Document Header................................................................................................27
6.1.4.4 Line Item.............................................................................................................36
6.1.4.5 Default Values for Document Processing.............................................................43
6.1.4.6 External Documents............................................................................................44
6.1.4.7 Recurring Entries.................................................................................................44
6.1.4.8 Changes Display..................................................................................................45
6.1.4.9 Accounting Document Archiving........................................................................46
6.1.4.10 Parked Documents...........................................................................................46
6.1.5 Tax on Sales/Purchases...........................................................................................46
6.1.5.1 Basic Settings......................................................................................................46
6.1.5.2 Calculation...........................................................................................................50
Page 2 of 135
6.1.5.3 Posting.................................................................................................................51
6.1.6 Correspondence.......................................................................................................52
6.1.6.1 Define correspondence types...............................................................................52
6.1.6.2 Allocate programs for correspondence types.......................................................52
6.1.6.3 Define forms for correspondence.........................................................................52
6.1.6.4 Define form names for correspondence print.......................................................52
6.1.6.5 Define sender details for correspondence............................................................52
6.1.6.6 Determine call-up functions.................................................................................53
6.1.6.7 Develop enhancements for correspondence.........................................................53
6.1.6.8 Define sort variants for correspondence..............................................................53
6.1.6.9 Define sort variants for line items........................................................................53
6.1.7 Financial Calendar..................................................................................................53
6.1.7.1 Define tasks in financial calendar........................................................................53
6.1.7.2 Define schedule for financial calendar.................................................................53
6.1.7.3 Allocate tasks to schedule for financial calendar.................................................54
6.1.8 Delete transaction data............................................................................................54
6.1.9 Tools........................................................................................................................54
6.1.9.1 Data Transfer.......................................................................................................54
6.1.9.2 Delete transaction data.........................................................................................54
6.1.10 Authorization Management.....................................................................................54
6.2 GENERAL LEDGER ACCOUNTING.......................................................................55

6.2.1 G/L Accounts..........................................................................................................55
6.2.1.1 Master Data.........................................................................................................55
6.2.1.2 Line Items............................................................................................................60
6.2.1.3 Balances...............................................................................................................65
6.2.2 Business Transactions.............................................................................................65
6.2.2.1 G/L Account Posting............................................................................................65
6.2.2.2 Prepare cross-company code transactions............................................................66
6.2.2.3 Open Item Clearing.............................................................................................66
6.2.2.4 Bank Account Interest Calculation......................................................................68
6.2.2.5 Planning...............................................................................................................72
6.2.2.6 Closing................................................................................................................73
6.2.2.7 Integration...........................................................................................................80
6.2.2.8 Integration...........................................................................................................80
6.2.3 Data Transfer...........................................................................................................89
6.2.4 Information System.................................................................................................90
6.2.4.1 Define report selection.........................................................................................90
6.2.4.2 Define/import ABAP/4 queries............................................................................90
6.2.4.3 G/L Information System......................................................................................90
6.2.5 Bank-Related Accounting........................................................................................91
6.2.5.1 Bank Accounts.....................................................................................................91
6.2.5.2 Business Transactions..........................................................................................94
6.2.5.3 Data Transfer.......................................................................................................94
6.3 ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE....................................95

6.3.1 Customer Accounts.................................................................................................95
6.3.1.1 Master Records....................................................................................................95
6.3.1.2 Line Items............................................................................................................95
6.3.1.3 Balances...............................................................................................................97
6.3.2 Vendor Accounts.....................................................................................................98
Page 3 of 135
6.3.2.1 Master Records....................................................................................................98
6.3.2.2 Line Items..........................................................................................................101
6.3.2.3 Balances.............................................................................................................103
6.3.3 Business Transactions...........................................................................................103
6.3.3.1 Incoming Invoices/Credit Memos......................................................................103
6.3.3.2 Release for Payment..........................................................................................109
6.3.3.3 Outgoing Payments............................................................................................109
6.3.3.4 Outgoing Invoices/Credit Memos......................................................................117
6.3.3.5 Incoming Payments............................................................................................117
6.3.3.6 Dunning.............................................................................................................119
6.3.3.7 Clearing Open Items..........................................................................................121
6.3.3.8 Down Payment Received...................................................................................123
6.3.3.9 Down Payment Made........................................................................................124
6.3.3.10 Bills of Exchange Receivable.........................................................................125
6.3.3.11 Bills of Exchange Payable..............................................................................128
6.3.3.12 Check/Bill of Exchange Transactions Received.............................................128
6.3.3.13 Check/Bill of Exchange Transactions Issued..................................................128
6.3.3.14 Internal Transfer Posting................................................................................128
6.3.3.15 Other Special G/L Transactions......................................................................128
6.3.3.16 Interest Calculation........................................................................................130
6.3.3.17 Closing...........................................................................................................133
6.3.3.18 Integration......................................................................................................135
6.3.4 Tools......................................................................................................................135
6.3.5 Information System...............................................................................................135
6.3.6 Credit Management...............................................................................................135
6.3.7 Additional Components.........................................................................................135
Page 4 of 135
1 Introduction
1.1 Scope of the Document
The Financial Accounting System Document contains the configuration details of the Financial Accounting
(FI) module.
1.2 Document Objectives

The objective of this document is to provide important configuration details of the module to enable the
application system administrator(s) / authorized users in maintaining the system. It is recommended that
not more than 2 key users be identified as the application system administrators. It is also recommended
that this document be a controlled copy in the hands of the target audience mentioned below.
Neither this documentation nor any part of it may be copied or reproduced in any form or by any means or
translated into another language, without the prior consent of DEF Information Systems Limited.
1.3 Document Structure

This document is broadly divided into two main sections namely the proposed system and the
configuration details. Some settings have been given in appendices.
1.4 Target Audience

This document is intended for use by the application system administrators who will be maintaining the FI
system. It may be noted that the document is consistent with the system settings on the date of document
(Date on the Title Page). It is the responsibility of the application system administrators to keep this
document updated and consistent with any further configuration done.
Page 5 of 135
2 Overview of the Proposed System
In order to work with the SAP R/3 system, the corporate structure of the user organization has to be
suitably mapped into the R/3 system. R/3 system provides various organizational entities that are used to
represent the user organization.
2.1 Organisational Structures

In the R/3 System the user can use several structures to represent the legal and organizational structure of
the entity from the point of view of financial Accounting, materials management, and sales and distribution.
It is possible to combine these structures. The organizational structures form a framework in which all
business transactions can be processed. An organizational structure consists of several organizational levels
which are used by different functional groups within an organization. The organizational levels relevant to
financial Accounting (FI) are given below.
2.1.1 Client
The client is the highest hierarchical level in the SAP system. Specifications that you have to make or data
that you enter at this level are valid for all company codes and for all other organisational structures, such
as sales organisation and purchase organisation. Consequently, these specifications are to be entered only
once. Central maintenance ensures standardised data. For example, Customer addresses are stored at client
level so that all company codes can access this central data. Different functional areas also use this data
like the customer’s address used for sending out an order confirmation as well as for printing a dunning
notice (reminder letter).
Each client is a self-contained unit with separate master records and a complete set of tables. A client key
is used in all master records, which ensures that they are stored per client. Each user must specify a client
key when he or she logs on to the system. By doing this, the user specifies the client in which he or she
wishes to work. All entries are stored per client. Data processing and analysis are carried out per client.
For example, it is not possible to produce a report on customer Accounts from different clients in one
dunning notice run. Access authorization is assigned per client. A user master record must be created for
each user in the client where he or she wishes to work.
Page 6 of 135
2.1.2 Company Code
Each company code represents an independent Accounting unit. The balance sheet and the profit and loss
statement, which are required by law, are prepared at company code level.
2.1.3 Credit Control Area

The credit control area is an organizational entity that predefines a credit limit for customers and checks it.
A credit control area can include one or more company codes. A subdivision of a company code into
several credit control areas is not possible.
2.1.4 Business Area

The business area represents an internal organizational unit, for which balance sheet or profit and loss
statement can be created. There can be several business areas for a company code which, however, are
valid for all company codes. Therefore, all business areas must have the same meaning. This is necessary
since any combination of company codes and business areas is possible on document level.
2.2 Master Data

Most of the master data required for the operation of the system is already input to the system during the
customisation process. The user can add more master data when necessary within the security and technical
limits of the system. Some of the important master data maintained in the FI system are given below:
General ledger Accounts

Banks
Business areas
Currencies
Fiscal year variants
Tax details
Field status variants
The customer master and vendor master records are maintained in the SD and MM modules respectively.
The GL accounts, exchange rates, customer and vendor details can be added / changed by the users without
going through the customisation process. The system will not allow addition or modification of any master
data which will create business or technical inconsistencies.
2.3 Interface with NON-SAP System

None
Page 7 of 135
3 Configuration for FI Module
The configuration values or parameters are documented under the following conditions:
 A new value or a set of values has been added in the system. Example: Chart of Accounts or Business
areas or Tax codes.
 A specific value has been chosen when many options were available. Example: Date Format
 Important SAP default settings are used without change. In this case the default settings are just
mentioned. The details of the settings may be omitted. Example: Posting Keys.
The configuration values or parameters are not documented (or only a representative set may be
documented) under the following conditions:
 The values are dynamic in nature and are likely to change within a short time frame. Example:
Currency Exchange Rates. In these cases the users will be able to add / modify the necessary master
data without going through customisation.
 The values are irrelevant to the current configuration. Example: VAT registration number.
3.1 Abbreviations used
Abbreviation Description
JV Journal Voucher
AA Asset Accounting
AR Accounts Receivable
AP Accounts Payable
AM Asset Management
APC Acquisition and Production Costs
AuC Assets Under Construction
CC Company Code
FI Financial Accounting module
LVA Low Value Assets
XYZ XYZ Chart of Accounts
XYZ XYZ Chart of Depreciation
XYZ XYZ INDUSTRIES Ltd.
SPRO SAP transaction which gives the normal customizing menu. This documentation
follows the SPRO structure.
LI Line Item
OI Open Item
INR Indian Rupee
USD US Dollar
CoArea Controlling Area
Page 8 of 135
4 Global Settings
4.1 Set countries
4.1.1 Define countries

You must include all countries with which your company has business relationships. You need the
following information for each country:
 General data
 Foreign trade characteristics
 Further test data
This data is then checked during master data maintenance.
Code Value Description

Country IN
Altern. country key 664
Name India
Nationality Indian
Vehicle country key IND
Language E English
ISO Code IN
Trde stat.short name INDIAN
Procdure TAXINJ
Address Layout Key -
Date Format DD.MM.YYYY
Decimal Format Period
4.1.2 Set country-specific checks

For all countries with which your company maintains business relationships, you must include rules for
checking the following data:
 Bank data
 Postal data
 Control data
This data is then checked during master data maintenance.
Code Length Check Rule Description

Bank Key 4 Assign externally
Postal Code Length 6 4 Length to be kept exactly, numerical, without gaps
Bank Number Length 15 5 Maximum value length
Bank Key 11 1 Maximum value length, without gaps
4.1.3 Insert regions

You enter the required regions in this step.
The region is used for the following functions:
Page 9 of 135
 Part of address
 Tax reporting in FI
 Pricing in SD (only for tax)
The usage can vary from country to country.
Country Region Description

IN AN Andaman & Nicobar
IN AP Andhra Pradesh
IN ARP Arunachal Pradesh
IN AS Assam
IN BH Bihar
IN CD Chandigarh
IN DEL Delhi
IN DH Dadra, Nagarhaveli
IN GDD Goa, Daman & Diu
IN GJ Gujarat
IN HP Himachal Pradesh
IN HR Haryana
IN JK Jammu & Kashmir
IN KAR Karnataka
IN KER Kerala
IN LAK Lakshwadeep
IN MAH Maharashtra
IN MP Madhya Pradesh
IN MZ Mizoram
IN NG Nagaland
IN OR Orissa
IN PB Punjab
IN PY Pondicherry
IN RJ Rajasthan
IN SK Sikkim
IN TN Tamil Nadu
IN UP Uttar Pradesh
IN WB West Bengal
4.1.4 Define country codes

You should maintain dialing codes in table T005K for all countries that you communicate with by
telephone, telefax or telex.
These entries are used when creating telefax or telex messages (SAPcomm or SAPLPD and WinFax).
They are also used for computer-aided telephoning (TAPI).
There are about 190 country codes defined in the SAP standard delivery system. The ISO standard is used
for the country key in accordance with "Define countries".
SAP settings used.
Page 10 of 135
4.1.5 Country codes - telephone: Define exceptions
SAP settings used.
4.1.6 Country codes - telex: Define exceptions
SAP settings used.
4.2 Currencies
4.2.1 Check currency codes

The currency table must have entries for all currencies which occur in your business transactions.
In the SAP standard recipient system, all currencies are defined according to the international ISO standard.
SAP recommends that you use the ISO standard for your additional entries.
If your entries do not correspond to the ISO standard, you will not be able to use data exchange in
international communication (e.g. bank clearing transactions).
Code Value Description

Currency INR
Long Text Indian Rupee
Short Text Rupee
ISO Currency code INR
4.2.2 Set decimal places for currencies

Each currency has a different number of decimal places.
If you are adding new currencies, which do not have two decimal places, you have to enter these currencies
in the menu option 'Decimal places'.
In the standard SAP delivery version, the most important currencies which do not have two decimal places
are pre-set according to the ISO standard.
The following settings have been made :
Table 1
Currency Description Decimal Places
DEM German Mark 5
GBP British Pound 5
JPY Japanese Yen 4
USD American Dollar 5
XEU European Currency Unit 5
(E.C.U.)
Other settings are standard SAP settings.
Page 11 of 135
4.2.3 Check exchange rate type
The exchange rate type is used to store exchange rates for different purposes for the same date in the
system. Existing entries may not be deleted.
The system uses the exchange rate type "M" for foreign currency translation when posting and clearing
documents. This exchange rate type must be contained in the system.
You can calculate the bank buying or selling rates using the average rate and the spread. By spread, we
refer to the difference between the average rate and the bank buying rate, or between the average and
selling rates.
To make this calculation for the buying or selling rate, enter the rate type for the average rate corresponding
to that buying or selling rate.
The standard system includes the exchange rate types for the bank buying rate (G), bank selling rate
(B) and average rate (M).
Type Description (Usage)

B Standard translation at bank selling rate
G Standard translation at bank buying rate
EURB Std translation at selling rate for EURO
EURG Standard translation at bank buying rate for EURO
EURX Std translation at average rate for EURO
M Standard translation at average rate
4.2.4 Maintain exchange rate spreads

No Settings done.
4.2.5 Define rounding rules for currencies

For the combination of company code and currency, where you want the payment transactions carried out
by the payment program to be processed not in the smallest currency unit but in a multiple of it, specify the
currency unit to which rounding off is to occur in this menu option.
This guarantees that resulting amounts take the specified currency unit into consideration, providing it has
also been taken into consideration during the manual entry of amounts. The payment program evaluates
these specifications to determine the cash discount and rounds off the amount accordingly.
No settings done for INR. Other settings are SAP standard.
4.2.6 Define conversion factors for currency conversion

In this step, you enter the exchange rate relation for the currency translation per exchange rate type and per
currency pair.
You must have defined the exchange rate types, under which you want to store your exchange ratios, and
the required currency keys.
Page 12 of 135
Type From To Translation Ratio Alt Exch Valid from
Rt
M DEM INR 1 1 00.00.0000
M FRF INR 1 1 00.00.0000
M GBP INR 1 1 00.00.0000
M INR INR 1 1 00.00.0000
M ITL INR 1,000 1 00.00.0000
M JPY INR 100 1 00.00.0000
M USD INR 1 1 00.00.0000

Rt
B DEM INR 1 1 EURB 01011999
B FRF INR 1 1 00.00.0000
B GBP INR 1 1 00.00.0000
B INR INR 1 1 00.00.0000
B ITL INR 1,000 1 EURB 01011999
B JPY INR 100 1 EURB 01011999
B ATS EUR 1000 1 EURO 01011999
B BEF EUR 1000 1 EURO 01011999
B DEM EUR 100 1 EURO 01011999
B ESP EUR 1000 1 EURO 01011999
B FIM EUR 100 1 EURO 01011999
B FRF EUR 100 1 EURO 01011999
B IEP EUR 1 1 EURO 01011999
B ITL EUR 10000 1 EURO 01011999
B LUF EUR 1000 1 EURO 01011999
B NLG EUR 100 1 EURO 01011999
B PTE EUR 1000 1 EURO 01011999
B USD EUR 1 1 EURB 01011999
B INR ITL 1 1 EURB 01011999
B INR EUR 1 1 EURB 01011999
B EUR ATS 1 1 EURO 01011999
B EUR BEF 1 1 EURO 01011999
B EUR DEM 1 1 EURO 01011999
B EUR ESP 1 1 EURO 01011999
B EUR FIM 1 1 EURO 01011999
B EUR FRF 1 1 EURO 01011999
B EUR IEP 100 1 EURO 01011999
B EUR INR 1 1 EURB 01011999
B EUR ITL 1 1 EURO 01011999
B EUR LUF 1 1 EURO 01011999
B EUR NLG 1 1 EURO 01011999
B EUR PTE 1 1 EURO 01011999
B EUR USD 1 1 EURB 01011999
B USD INR 1 1

Rt
G DEM INR 1 1 EURG 01011999
G FRF INR 1 1 00.00.0000
G GBP INR 1 1 00.00.0000
Page 13 of 135
G INR INR 1 1 00.00.0000
G ITL INR 1,000 1 EURG 01011999
G JPY INR 100 1 EURG 01011999
G ATS EUR 1000 1 EURO 01011999
G BEF EUR 1000 1 EURO 01011999
G DEM EUR 100 1 EURO 01011999
G ESP EUR 1000 1 EURO 01011999
G FIM EUR 100 1 EURO 01011999
G FRF EUR 100 1 EURO 01011999
G IEP EUR 1 1 EURO 01011999
G ITL EUR 10000 1 EURO 01011999
G LUF EUR 1000 1 EURO 01011999
G NLG EUR 100 1 EURO 01011999
G PTE EUR 1000 1 EURO 01011999
G USD EUR 1 1 EURG 01011999
G INR ITL 1 1 EURG 01011999
G INR EUR 1 1 EURG 01011999
G EUR ATS 1 1 EURO 01011999
G EUR BEF 1 1 EURO 01011999
G EUR DEM 1 1 EURO 01011999
G EUR ESP 1 1 EURO 01011999
G EUR FIM 1 1 EURO 01011999
G EUR FRF 1 1 EURO 01011999
G EUR IEP 100 1 EURO 01011999
G EUR INR 1 1 EURG 01011999
G EUR ITL 1 1 EURO 01011999
G EUR LUF 1 1 EURO 01011999
G EUR NLG 1 1 EURO 01011999
G EUR PTE 1 1 EURO 01011999
G EUR USD 1 1 EURG 01011999
G USD INR 1 1
Table 2
EURB DEM EUR 100 1
EURB DEM INR 1 1
EURB EUR DEM 1 1
EURB EUR INR 1 1
EURB EUR ITL 1 1
EURB INR DEM 1 1
EURB INR EUR 1 1
EURB INR ITL 1 1
EURB ITL EUR 10,000 1
EURB ITL INR 1 1
EURG DEM EUR 100 1
EURG DEM INR 1 1
EURG EUR DEM 1 1
EURG EUR INR 1 1
EURG EUR ITL 1 1
EURG INR DEM 1 1
EURG INR EUR 100 1
EURG INR ITL 1 1
Page 14 of 135
EURG ITL EUR 10 1
EURG ITL INR 1 1
EURO ATS EUR 1 1
EURO BEF EUR 1 1
EURO DEM EUR 100 1
EURO ESP EUR 1 1
EURO EUR ATS 1 1
EURO EUR BEF 1 1
EURO EUR DEM 1 1
EURO EUR ESP 1 1
EURO EUR FIM 1 1
EURO EUR FRF 1 1
EURO EUR IEP 100 1
EURO EUR ITL 1 1
EURO EUR LUF 1 1
EURO EUR NLG 1 1
EURO EUR PTE 1 1
EURO FIM EUR 100 1
EURO FRF EUR 100 1
EURO IEP EUR 1 1
EURO ITL EUR 10 1
EURO LUF EUR 1 1
EURO NLG EUR 100 1
EURO PTE EUR 1 1
EURX DEM EUR 100 1
EURX DEM INR 1 1
EURX EUR DEM 1 1
EURX EUR INR 1 1
EURX EUR ITL 1 1
EURX INR DEM 1 1
EURX INR EUR 100 1
EURX INR ITL 1 1
EURX ITL EUR 10 1
4.2.7 Enter exchange rates

The exchange rates are needed to
 Translate foreign currency amounts when posting or clearing or to check an exchange rate entered
manually
 Determine the gain and loss from exchange rate differences
 Evaluate open items in foreign currency and the foreign currency balance sheet accounts
The exchange rates are defined by period ("valid from").
The system have been set to buying & selling rates (B,G,EURX, EURB) exchange rates for foreign
currency translation when posting and clearing documents. An entry must exist in the system for this
exchange rate type. The exchange rates apply to all company codes.
The exchange rate relations for currency translation are maintained here. Read the chapter "Define
translation factors" for information on the actual maintenance.
Page 15 of 135
Note
The rates currently in the system may not be relevant in the production system. This will have to be
maintained by the users as & when required to keep the rates upto-date. The maintenance of these rates is
possible through Accounting menu also.
4.3 Check units of measurement

In applications you often have to make calculations with quantities and physical units. Units of
measurement are needed for their screen display and for internal conversions (such as kilogram <-> gram,
but also centimeter <-> inch). The international system of units (SI) is used for this.
In the standard delivery system, units of measurement are defined according to the international system of
units (SI).
For a new installation, units of measurement are delivered in all clients. For upgrades, new units of
measurements are delivered only in Client 000. They then still have to be transported to the production
clients.
Dimensions and ISO codes are SAP standard.
Measur Unit Commercial Technical Measur Unit of Text

BOX BOX Boxes Box
ECH EA Each Each
FT FT Feet Feet
KI KI Box Box
LAC LAC LAKH
LE LE le
P10 P10 Pack10 Pack of 10
P12 P12 pack12 Pack of 12
PAA PAA PAIR Pair
PAK PAK PAC Pack
PHU PHU Pac100 Pack of 100
PK2 PK2 pack2 Pack of 2
PK6 PK6 Pack6 Pack of 6
ROL ROL ROL Role
ST ST items Items
4.4 Maintain calendar

You can use calendar maintenance to maintain and display the components of the calendar system. The
public holiday and factory calendar data calculated from calendar maintenance is directly available to the
system.
A factory calendar is allocated to your plant via another Customizing function.
The calendar system consists of the following components:
Page 16 of 135
 Public holidays: Definitions for public holidays: Calculation rule for date, religious denomination etc.
 Public holiday calendar: Any composition of public holiday rules.
 Factory calendar: Definition of workdays including special regulations, under the assignment of a
particular public holiday calendar.
Public Holidays relevant to ABC

Settings relevant for 1999
19.01.1999 Ramzan - India
26.01.1999 Republic Day - India
14.02.1999 Sivarathri - India
22.02.1999 Pudussery Vedi - India
15.04.1999 Vishu - India
01.05.1999 May Day
03.05.1999 May Day
15.08.1999 Independance Day - India
25.08.1999 Thiruvonam - India
02.09.1999 Krishna Jayanthi - India
02.10.1999 Gandhi Jayanthi - India
20.10.1999 Vijayadashmi - India
07.11.1999 Deepavali - India
08.11.1999 Deepavali - India
25.12.1999 Christmas - India
Other than the above mentioned days all other days are working.
4.5 Maintain calendar for Japan

Not relevant
4.6 Maintain standard settings for SAP Business Workflow

Not settings done.
4.7 Field display characteristics
4.7.1 Global field display characterisitics
4.7.1.1 Set global field display characteristics
None
4.7.1.2 Activate global field display characteristics

SAP standard settings.
4.7.2 Make transaction-related field display characteristic settgs

SAP standard settings.
Page 17 of 135
5 Enterprise Structure
5.1 Maintain graphic
Not relevant
5.2 Maintain structure
5.2.1 Definition
5.2.1.1 Financial Accounting
5.2.1.1.1 Maintain company (group)

In this step you can create companies. A company is an organizational unit in Accounting which represents
a business organization according to the requirements of commercial law in a particular country.
You store basic data for each company in company definition. You only specify particular functions when
you customize in Financial Accounting. Company G0000 is preset in all foreign key tables.
In the SAP system, consolidation functions in financial accounting are based on companies. A company
can comprise one or more company codes.
Company ABC
Name of the company ABC INDIA LIMITED
Name of company 2
Street
P.O. box
Postal code
City
Country IN
Language E
Currency INR
Company XYZ
Name of the company XYZ INDUSTRIES LIMITED
Name of company 2
Street
P.O. box
Postal code
City
Country IN
Language E
Currency INR
5.2.1.1.2 Maintain credit control area

In this step, you define your credit control areas. The credit control area is an organizational unit that
specifies and checks a credit limit for customers.
A credit control area can include one or more codes. It is not possible to assign a company code to more
than one control area. Within a credit control area, the credit limits must be specified in the same currency.
Page 18 of 135
Setting Description
Credit area GCCA
Description XYZ Credit Control Area
Currency INR
Update 000012
Fiscal variant V3
Risk category
Credit limit
Rep. Group
5.2.1.1.3 Define, copy, delete, check company code

In this activity you create your company codes. The company code is an organizational unit used in
accounting. It is used to structure the business organization from a financial accounting perspective.
You define your company codes by specifying under a key the following information:
 Company code name

 Address data
 Country currency
You must also enter a country key and a language key for each company code. You do not specify the
functional characteristic of the company code until configuring the relevant application.
You can set up several company codes per client to manage the accounts of independent organizations
simultaneously. At least one company code must be set up in each client.
You can also assign several company codes to one controlling area.
Setting Description
Company code ABC
Company name ABC. India Limited
City HYDERABAD
Cntry IN
Currency INR
Language E
Company code XYZ

Company name XYZ INDUSTRIES LTD
City
Cntry IN
Currency INR
Language E
5.2.1.1.4 Maintain business area

In this section you create business areas. A area is an organizational unit within accounting that represents a
separate area of operations or responsibilities in a business organization.
When defining a business area, you enter a four-character alphanumeric key and the name of the business
area. In a client, you can set up several business areas to which the system can assign the postings made in
all company codes defined in this client. To ensure consistency in document entry, you should give business
areas the same name in all company codes.
Business area Description
Page 19 of 135
1000 Business Area
1100 Coimbatore Business Area
1200 Calcutta Business Area
1300 Medak Spinning Business Area
1400 PUNE Business Area
1500 Medak Doubling Business Area
1600 YPU Shadnagar Business Area
1700 Mumbai Business Area
5000 ABC Business Area
5.2.1.1.5 Maintain functional area

In this step you create functional areas. A functional area is an organizational unit within accounting which
structures your business organization according to the requirements of cost-of-sales accounting.
No Settings done
5.2.1.1.6 Maintain consolidation business area

No Settings done
5.2.2 Assignment
5.2.2.1 Financial Accounting
5.2.2.1.1 Assign company code to company

In this step you assign the company codes which you want to include in the group
accounting to a company.
Company code Company

ABC ABC
XYZ XYZ
5.2.2.1.2 Assign company code to credit control area

In this step, you assign company codes to a credit control area.
ABC ABC India Limited HYDERABAD GCCA
5.2.2.1.3 Assign business area to consolidation business area

In this step you allocate the business areas to consolidation business areas, as required for
consolidation.
Page 20 of 135
No Settings done
5.3 Consistency Check

In this step, you check the definition and allocation of OrgUnits in Sales and Distribution. For example, you
can check whether the addresses were maintained for all sales organizations, whether the allocation to a
company code was made and a sales area created.
You receive a list of the missing definitions and allocations and can correct the errors.
Page 21 of 135
6 Financial Accounting
6.1 Financial Accounting Global Settings
6.1.1 Company Code
6.1.1.1 Enter global parameters

In this step, you can make various global specifications for the company code. In addition, you can look at
the most important specifications of the company code at any time in the overview. This includes, among
other things, the chart of accounts and the fiscal year variant.
Company code ABC XYZ

Country key IN IN
Currency INR INR
Language E E
Accounting organization
Chart of Accounts XYZ XYZ
Credit control area GCCA GCCA
FM area
Fiscal year variant V3 V3
Processing parameters
Document entry screen variant 2 2
Field status variant GFS GFS
Posting Period Variant ABC XYZ
CoCd -> CO area 1 1
Business area balance sheet X X

Propose fiscal year X X
Propose value date X X
No Ex. Rate difference in clearing in LC X X
Tax base is net value X X
Discount base is net value X X
Cash management Activated X X
6.1.1.2 VAT Registration Number (VAT Reg.No.)

Not relevant to the current system. No settings have been done under this heading.
6.1.1.3 Prepare cost of sales accounting

Page 22 of 135
6.1.1.4 Parallel Currencies
6.1.1.5 Set company code to productive

In this step, you set the productive indicator for the company codes for which the test phase has been
completed. The productive indicator prevents data within the company code from being deleted by the
programs for deleting test data.
The company code ABC is not set to productive.

Note
The company code can be set to productive after the system goes live and stabilizes.
6.1.2 Business Area
6.1.2.1 Enable business area balance sheet

To be able to create a balance sheet and a profit and loss statement for business areas, the field for the
business area in the line item must be ready for input. In this menu option you have the option of setting the
indicator for the Business area field for each company code. If you set the indicator, the Business area field
is always ready for input when you post documents, independent of the field control of the posting keys and
of the accounts.
Company Code Business area balance sheet

XYZ X
ABC X
6.1.3 Fiscal Year
6.1.3.1 Maintain fiscal year variant (maintain shortened fisc. year)

You can define the following characteristics for a fiscal year variant:
 how many posting periods a fiscal year has.
 how many special periods you need.
 how the system is to determine the posting periods when posting.
No new variants have been created.
Page 23 of 135
6.1.3.2 Allocate company code to a fiscal year variant
For every company code, you must determine which fiscal year variant is to be used.
Company Code Fiscal Year Variant Description

XYZ V3 Apr.- March, 4 special periods
ABC V3 Apr.- March, 4 special periods
6.1.4 Document
6.1.4.1 Posting Periods
6.1.4.1.1 Define variants for open posting periods

In this step, you can define variants for open posting periods.
Variant Name
ABC Variant for ABC
XYZ Variant for XYZ
6.1.4.1.2 Open and close posting periods

You determine which periods are open for posting by specifying two intervals in a table. You specify a
posting period and a fiscal year each as a lower and upper limit. You must make these specifications
separately for each company code. You close a period by making period specifications such that the period
is no longer contained in it. By specifying account numbers, you can open posting periods for specific
accounts.
There must be at least one entry for each variant. This entry must have + in column A; the columns "From
acct" and "To account" may not be filled. In the columns for the posting periods, you specify the periods
which are to be opened for the variant. Via further entries, you determine more specifically which periods
are to be opened for which accounts.
Var. Acct From To From per.1 Year To Year From Year To Year AuGr
acct account period per.2 period
XYZ + 12 1994 12 2005 1 1998 16 1998
ABC + 12 1994 12 2005 1 1998 16 1998
Note
The above mentioned settings can be changed by the authorized user to close or open the
posting periods as and when required.
Page 24 of 135
6.1.4.1.3 Allocate company code to variant
CC Variant
ABC ABC
XYZ XYZ
Initially the variant has only the period March 1998 open to facilitate the entry of balances as on 310399,
which should be changed later.
6.1.4.2 Document Number Ranges
6.1.4.2.1 Define document number ranges

In the following step, you create the number ranges for documents. You specify (among other things) the
following for each number range:
 A number interval from which the system selects document numbers
 The type of number assignment (internal or external)
You assign one or more document types to each number range.

The type of number assignment is of special importance. For each document type you should check
whether a separate number range must be used and which type of number assignment makes most sense.
External number assignment, for example, makes sense if the documents are transferred from a non-SAP
system. The numbers must be unique.
Internal number assignment makes sense if the original documents do not have a unique document number.
This is the case, for example, with vendor invoices.
The number ranges for the documents are company code-dependent. You must therefore create your
number ranges for each company code in which the document type is used, namely with the same number
range key.
The number intervals must not overlap. If you use year-dependent number ranges, you can specify the same
interval with the same key several times for different "to- fiscal years" (the limit up to which a number
range is still valid). If you want to define number ranges which are independent of the to-fiscal year, enter
9999 in the to- fiscal year field.
For sample documents, use a number range with key X2, for recurring entry documents with key X1. These
keys may not be used for other number ranges.
-Edit
No Year From number To number Current number

1 1998 100000000 199999999 100000154
1 1999 100000000 199999999 100000557
1 9999 100000000 199999999 0
2 1998 200000000 299999999 200000011
2 1999 200000000 299999999 0
2 9999 200000000 299999999 0
3 1998 300100000 300199999
3 1999 300100000 300199999
3 9999 300100000 300199999
4 1998 400000000 499999999 400000000
4 1999 400000000 499999999 400000014
Page 25 of 135
5 1998 500000000 599999999 0
5 1999 500000000 599999999 500000058
6 1998 600000000 699999999 0
6 1999 600000000 699999999 600000474
6 9999 600000000 699999999 0
7 1998 700000000 799999999 0
7 1999 700000000 799999999 0
7 9999 700000000 799999999 0
12 1998 1200000000 1299999999 0
12 1999 1200000000 1299999999 0
12 9999 1200000000 1299999999 0
13 1998 1300000000 1399999999 0
13 1999 1300000000 1399999999 0
13 9999 1300000000 1399999999 0
14 1998 1400000000 1499999999 1400000011
14 1999 1400000000 1499999999 1400000014
14 9999 1400000000 1499999999 0
15 1998 1500000000 1599999999 1500000041
15 1999 1500000000 1599999999 1500000153
15 9999 1500000000 1599999999 0
16 1998 1600000000 1699999999 0
16 1999 1600000000 1699999999 1600000004
16 9999 1600000000 1699999999 0
17 1998 1700000000 1799999998 1700000008
17 1999 1700000000 1799999998 1700000011
17 9999 1700000000 1799999998 0
18 1998 1800000000 1899999999 1800000015
18 1999 1909001 1909900 1909008
18 9999 1800000000 1899999999 0
19 1998 1900000000 1999999999 1900000261
19 1999 1900000000 1999999999 1900000103
19 9999 1900000000 1999999999 0
20 1998 2000000000 2099999999 0
20 1999 2000000000 2099999999 0
20 9999 2000000000 2099999999 0
47 1998 4700000000 4799999999 0
47 1999 4700000000 4799999999 0
47 9999 4700000000 4799999999 0
48 1998 4800000000 4899999999 0
48 1999 4800000000 4899999999 0
48 9999 4800000000 4899999999 0
49 1998 4900000000 4999999999 4900002410
49 1999 4900000000 4999999999 4900000395
49 9999 4900000000 4999999999 0
50 1998 5000000000 5099999999 0
50 1999 5000000000 5099999999 5000000341
50 9999 5000000000 5099999999 0
51 1998 5100000000 5199999999 0
51 1999 5100000000 5199999999 5100000267
Page 26 of 135
51 9999 5100000000 5199999999 0
99 1998 9900000000 9900900000 0
99 1999 9900000000 9900900000 0
99 9999 9900000000 9900900000 0
X1 1998 9100000000 9199999999 0
X1 1999 9100000000 9199999999 0
X1 9999 9100000000 9199999999 0
X2 1998 9200000000 9299999999 0
X2 1999 9200000000 9299999999 0
X2 9999 9200000000 9299999999 0
X3 1998 9990000000 9999999999 0
X3 1999 9990000000 9999999999 9990000010
X3 9999 9990000000 9999999999 0
6.1.4.2.1.1 Copy to company code

In this step, you can copy intervals of document number ranges from one company code to other company
codes.
This programme should be executed as and when number range is required for a new company code.
6.1.4.2.2 Copy to fiscal year

In this step, you can determine which intervals of document number ranges are to be copied from one fiscal
year into another per company code.
Not required
Note
This option may be used in future for copying number ranges from one fiscal year to another.
6.1.4.3 Document Header
6.1.4.3.1 Define document types

In this step, you create document types for customer, vendor and general ledger business transactions. The
document types distinguish the business transactions and control the filing of documents.
You specify a number range for each document type. The document number is to be selected from this
number range. You can use one number range for several document types.
The document types are valid for all clients. Specify a number range key for each document type. Create
the required number range intervals for each number range key, depending on company code. This means
that you have the option of specifying intervals of different sizes for the same number range.
The document types maintained in the system are listed below:
Doc. Description Number Account

type range types
Page 27 of 135
AA Asset posting 2 ADKMS
AB Accounting document 4 ADKMS
AF Dep. postings 3 AS
AN Net asset posting 1 AKMS
BA -JRNL VCHR BA ADKS
BB -CASH PAY VCHR BB ADKS
BC -CASH REC VCHR BB ADKS
BD -CUST.INVOICE BD ADKS
BE -CUST.PAYMT. BE ADKS
BF -VEND.INVOICE BF ADKS
BG -VEND.PAYMT. BG ADKS
CA COIMB-JRNL VCHR CA ADKS
CB COIMB-CASH PAY VCHR CB ADKS
CC COIMB-CASH REC VCHR CB ADKS
CD COIMB-CUST.INVOICE CD ADKS
CE COIMB-CUST.PAYMT. CE ADKS
CF COIMB-VEND.INVOICE CF ADKS
CG COIMB-VEND.PAYMT. CG ADKS
CP Cash Payments 6 ADKS
CR Cash Receipts 6 ADKS
DA Customer document 16 DS
DC Delivery costs X3 AKMS
DG Customer credit memo 16 DS
DR Customer invoice 18 ADKMS
DZ Customer payment 14 DKS
EX External number 2 DKS
HA MDK.DBL-JRNL VCHR HA ADKS
HB MDK.DBL-CASH PAY VCH HB ADKS
HC MDK.DBL-CASH REC VCH HB ADKS
HD MDK.DBL-CUST.INVOICE HD ADKS
HE MDK.DBL-CUST.PAYMT. HE ADKS
HF MDK.DBL-VEND.INVOICE HF ADKS
HG MDK.DBL-VEND.PAYMT. HG ADKS
KA Vendor document 17 AKMS
KG Vendor credit memo 17 AKMS
KN Net vendor document 1 ASK
KP Account maintenance 48 ASM
KR Vendor invoice 19 AKMS
KZ Vendor payment 15 AKMS
LA CALCUTA-JRNL VCHR LA ADKS
LB CALCUTA-CASH PAY VCH LB ADKS
LC CALCUTA-CASH REC VCH LB ADKS
LD CALCUTA-CUST.INVOICE LD ADKS
LE CALCUTA-CUST.PAYMT. LE ADKS
LF CALCUTA-VEND.INVOICE LF ADKS
LG CALCUTA-VEND.PAYMT. LG ADKS
MA MDK.SPN-JRNL VCHR MA ADKS
MB MDK.SPN-CASH PAY VCH MB ADKS
MC MDK.SPN-CASH REC VCH MB ADKS
Page 28 of 135
MD MDK.SPN-CUST.INVOICE MD ADKS
ME MDK.SPN-CUST.PAYMT. ME ADKS
MF MDK.SPN-VEND.INVOICE MF ADKS
MG MDK.SPN-VEND.PAYMT. MG ADKS
ML ML settlement 47 MS
NA PUNE-JRNL VCHR NA ADKS
NB PUNE-CASH PAY VCHR NB ADKS
NC PUNE-CASH REC VCHR NB ADKS
ND PUNE-CUST.INVOICE ND ADKS
NE PUNE-CUST.PAYMT. NE ADKS
NF PUNE-VEND.INVOICE NF ADKS
NG PUNE-VEND.PAYMT. NG ADKS
PA MUMBAI-JRNL VCHR PA ADKS
PB MUMBAI-CASH PAY VCHR PB ADKS
PC MUMBAI-CASH REC VCHR PB ADKS
PD MUMBAI-CUST.INVOICE PD ADKS
PE MUMBAI-CUST.PAYMT. PE ADKS
PF MUMBAI-VEND.INVOICE PF ADKS
PG MUMBAI-VEND.PAYMT. PG ADKS
PR Price change 48 MS
RA Sub.cred.memo stlmt 51 AKMS
RE Invoice receipt 51 AKMS
RN Net invoice receipt 51 AKMS
RV Billing doc.transfer 1 ADS
SA G/L account document 1 ADKMS
SB G/L account posting 12 DS
SK Cash document 13 S
SU Readjustment doc. 1 S
TD TDS DOCUMENT 5 KS
WA Goods issue 49 AMS
WE Goods receipt 50 AMS
WI Inventory document 49 AMS
WL Goods issue/delivery 49 AMS
WN Net goods receipt 50 AMS
YA VIZAG-JRNL VCHR YA ADKS
YB VIZAG-CASH PAY VCH YB ADKS
YC VIZAG-CASH REC VCH YB ADKS
YD VIZAG-CUST.INVOICE YD ADKS
YE VIZAG-CUST.PAYMT. YE ADKS
YF VIZAG-VEND.INVOICE YF ADKS
YG VIZAG-VEND.PAYMT. YG ADKS
ZP Payment posting 20 ADKMS
ZV Payment clearing 20 ADKMS
NOTE ON ACCOUNT TYPES :
A = Asset Accounts
D= Customer Accounts
Page 29 of 135
K= Vendor Accounts
M= Material Accounts
S= General Ledger Accounts
6.1.4.3.2 Define validations for posting

In this step, 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).
CC CallPnt Validation Description Activtn level

XYZ 2 XYZVLDN XYZ CoCode Validations 1
ABC 2 CASH 1
VALIDATION NAME - CASH
Validation step 001 PL CHECK,CASH PAYMENT >9,999
Prerequisite
<BSEG> $BSCHL = '50' and

<BSEG> $HKONT = '223000' or
<BSEG> $HKONT = '223005'
Check
<BSEG> $wrbtr <= '9999'
Message ( output if prerequisite is met and check is not fulfilled)
Typ W No. 000 Text PL CHECK, CASH PAYMENT IS EXCEEDING RS 9,999
VALIDATION NAME - XYZVLDN
Validation step 001 DOCUMENT TYPES FOR BUS AREA 1000
Prerequisite
<BKPF> $BLART = 'BA' OR

<BKPF> $BLART = 'BB' OR
<BKPF> $BLART = 'BC' OR
<BKPF> $BLART = 'BD' OR
<BKPF> $BLART = 'BE' OR
Page 30 of 135
<BKPF> $BLART = 'BF' OR
<BKPF> $BLART = 'BG'
Check
<BSEG> $GSBER = '1000' OR

<BSEG> $GSBER = ' '
Typ E No. 001 Text Business area '$' not allowed for document type '$'
Output fields 1 BSEG - GSBER 2 BKPF - BLART
Prerequisite
<BKPF> $BLART = 'CA' OR

<BKPF> $BLART = 'CB' OR
<BKPF> $BLART = 'CC' OR
<BKPF> $BLART = 'CD' OR
<BKPF> $BLART = 'CE' OR
<BKPF> $BLART = 'CF' OR
<BKPF> $BLART = 'CG'
Check

<BSEG> $GSBER = ' '
Prerequisite
<BKPF> $BLART = 'LA' OR

<BKPF> $BLART = 'LB' OR
<BKPF> $BLART = 'LC' OR
<BKPF> $BLART = 'LD' OR
<BKPF> $BLART = 'LE' OR
<BKPF> $BLART = 'LF' OR
<BKPF> $BLART = 'LG'
Check

<BSEG> $GSBER = ' '
Page 31 of 135
Prerequisite
<BKPF> $BLART = 'MA' OR

<BKPF> $BLART = 'MB' OR
<BKPF> $BLART = 'MC' OR
<BKPF> $BLART = 'MD' OR
<BKPF> $BLART = 'ME' OR
<BKPF> $BLART = 'MF' OR
<BKPF> $BLART = 'MG'
Check

<BSEG> $GSBER = ' '
Prerequisite
<BKPF> $BLART = 'NA' OR

<BKPF> $BLART = 'NB' OR
<BKPF> $BLART = 'NC' OR
<BKPF> $BLART = 'ND' OR
<BKPF> $BLART = 'NE' OR
<BKPF> $BLART = 'NF' OR
<BKPF> $BLART = 'NG'
Check

<BSEG> $GSBER = ' '
Prerequisite
<BKPF> $BLART = 'HA' OR

<BKPF> $BLART = 'HB' OR
<BKPF> $BLART = 'HC' OR
<BKPF> $BLART = 'HD' OR
<BKPF> $BLART = 'HE' OR
<BKPF> $BLART = 'HF' OR
<BKPF> $BLART = 'HG'
Page 32 of 135
Check

<BSEG> $GSBER = ' '
Prerequisite
<BKPF> $BLART = 'YA' OR

<BKPF> $BLART = 'YB' OR
<BKPF> $BLART = 'YC' OR
<BKPF> $BLART = 'YD' OR
<BKPF> $BLART = 'YE' OR
<BKPF> $BLART = 'YF' OR
<BKPF> $BLART = 'YG'
Check

<BSEG> $GSBER = ' '
Prerequisite
<BKPF> $BLART = 'PA' OR

<BKPF> $BLART = 'PB' OR
<BKPF> $BLART = 'PC' OR
<BKPF> $BLART = 'PD' OR
<BKPF> $BLART = 'PE' OR
<BKPF> $BLART = 'PF' OR
<BKPF> $BLART = 'PG'
Check

<BSEG> $GSBER = ' '
Validation step 009 Cash payment in excess of 9999
Prerequisite
Page 33 of 135
<BSEG> $HKONT = '223005'
Check
<BSEG> $wrbtr <= '9999'
Message ( output if prerequisite is met and check is not fulfilled)
Typ W No. 000 Text PL CHECK, CASH PAYMENT IS EXCEEDING RS 9,999
6.1.4.3.3 Define substitution in accounting documents
6.1.4.3.4 Define texts for line items

In this menu option, you define text IDs for documents. When entering a document, texts can be entered for
every text ID. This means that you can store information on the document within the document.
Page 34 of 135
0001 Substitute Tax
0002 Telephone charges paid
0003 Payment to party against inv no.
0004 Conveyance charges paid
0005 Reimbursement of charges
0006 Rent paid
0007 Negotiation of bill against invoice no.
0008 Power bill paid
0009 Travelling expenses paid
0010 Acquisition of new fixed asset
0011 Sale of yarn
0012 Bill accepted by customer
0013 Bill negotiated with bank
0014 Bill contingent liability reversed
0015 Purchases made from vendor
0017 Down payment made to Vendor
0018 TDS on payments to Contractor
0019 TDS on payments to Consultant
016 Part payment made to the vendor
6.1.4.3.5 Define document change rules

No settings have been done.
6.1.4.3.6 Specify control paramters for bar code entry

6.1.4.3.7 Maintain document types for bar code entry

6.1.4.3.8 Maximum Exchange Rate Difference
6.1.4.3.8.1 Define maximum exchange rate difference per company

code
In this step, you define, per company code, a maximum difference between exchange rates for postings in
foreign currency. To do this, you specify how much the exchange rate entered manually in the document
header may differ in terms of percent from the one stored in the system.
If an exchange rate or the local and the foreign currency amount were entered manually during document
entry, then a comparison is made with the exchange rates stored in the system. If a deviation does occur and
it exceeds the percentage rate specified here, then a warning appears.
Page 35 of 135
6.1.4.3.8.2 Define maximum exchange rate difference per foreign
currency
In this step, you can specify a maximum difference between exchange rates for the foreign currency/local
currency exchange rate in terms of percent.
6.1.4.4 Line Item
6.1.4.4.1 Controls
6.1.4.4.1.1 Define posting keys

In this step, you define the posting keys. The posting key is entered before entering a line item; it controls
the entry and processing of the line item.
Among other things, specify the following for each key:
 Which side of the account is posted to

 Which account type is posted to with the posting key
 Which fields are contained in the entry screens, and whether the fields must be filled (field status)
The field status of a field is also determined by the field status group which is defined in the G/L account.
You define the field status group via the field status variant.
Posting Description Debit / Credit Account type

Key
00 Act assignment model
01 Invoice Debit Customer
02 Reverse credit memo Debit Customer
03 Bank charges Debit Customer
04 Other receivables Debit Customer
05 Outgoing payment Debit Customer
06 Payment difference Debit Customer
07 Other clearing Debit Customer
08 Payment clearing Debit Customer
09 Special G/L debit Debit Customer
11 Credit memo Credit Customer
12 Reverse invoice Credit Customer
13 Reverse charges Credit Customer
14 Other payables Credit Customer
15 Incoming payment Credit Customer
16 Payment difference Credit Customer
17 Other clearing Credit Customer
18 Payment clearing Credit Customer
19 Special G/L credit Credit Customer
21 Credit memo Debit Vendor
22 Reverse invoice Debit Vendor
24 Other receivables Debit Vendor
25 Outgoing payment Debit Vendor
26 Payment difference Debit Vendor
Page 36 of 135
27 Clearing Debit Vendor
28 Payment clearing Debit Vendor
29 Special G/L debit Debit Vendor
31 Invoice Credit Vendor
32 Reverse credit memo Credit Vendor
34 Other payables Credit Vendor
35 Incoming payment Credit Vendor
36 Payment difference Credit Vendor
37 Other clearing Credit Vendor
38 Payment clearing Credit Vendor
39 Special G/L credit Credit Vendor
40 Debit entry Debit G/L account
50 Credit entry Credit G/L account
70 Debit asset Debit Asset
75 Credit asset Credit Asset
80 Inventory taking Debit G/L account
81 Costs Debit G/L account
83 Price difference Debit G/L account
84 Consumption Debit G/L account
85 Change in stock Debit G/L account
86 GR/IR debit Debit G/L account
89 Stock inwrd movement Debit Material
90 Inventory taking Credit G/L account
91 Costs Credit G/L account
92 Inventory difference Credit G/L account
93 Price difference Credit G/L account
94 Consumption Credit G/L account
95 Change in stock Credit G/L account
96 GR/IR credit Credit G/L account
99 Stock outwd movement Credit Material
6.1.4.4.1.2 Maintain field status variants

In this step you can define field status variants. These allow you to work with the same field status
definition in any number of company codes.
In a second step, you define at least one field status group for each field status variant. You have to define
these in the G/L accounts (company code-dependent area). The field status group determines in which
fields data can be entered, or whether a field requires entry or is suppressed altogether during business
transaction entry. Keep in mind that additional account assignments (i.e. cost centers or orders) are only
possible if data can be entered in the corresponding fields.
The following variant has been defined for ABC and XYZ
GFS - XYZ FIELD STATUS Variant
G001 General (with text, allocation)

G002 General (for Automatic Postings)
G003 Material consumption accounts
G004 Cost accounts
G005 Bank accounts (obligatory value date)
G006 Material accounts
Page 37 of 135
G007 Asset accts (w/o accumulated depreciatn)
G008 Assets area clearing accounts
G009 Bank accounts (obligatory due date)
G010 General (for Cost centre & IO mandatory)
G011 Clearing accounts (with settlement per.)
G012 Receivables/payables clearing
G013 General (obligatory text)
G014 MM adjustment accounts
G017 Freight/customs provisions/clearing (MM)
G018 Scrapping (MM)
G019 Other receivables/payables
G023 Plant maintenance accounts
G025 Inventory adjustment accounts
G026 Accounts for down payments made
G029 Revenue accounts
G030 Change in stock accounts
G031 Accounts for down payments received
G032 Bank accounts (obligat.value/due dates)
G033 Cost accounts for external services
G036 Revenue accts (with cost center)
G039 Accts for pmnts on acct made for assets
G040 Personnel clearing accounts
G041 Tax office clearing accounts
G045 Goods/invoice received clearing accounts
G049 Manufacturing costs accounts
G050 Central control clearing accounts
G052 Accounts for fixed asset retirement
G056 Amortization accounts
G059 Inventory accounting material stock acct
G062 Investment support accounts
G064 Other cost accounts (obligatory text)
G067 Reconciliation accounts
Note
Refer the system for the details of the field status variants.
The field statuses are by and large similar to the SAP standard settings. But changes have been made to
enable postings to the following modules:
 Treasury
 CO (Cost Accounting assignments)
 Asset Accounting
 Materials Management
 Sales and Distribution
Please note the following
 Business Area has been made mandatory wherever possible as Business Area balance sheet has been
enabled.
 Field status of a line item is also controlled by the Posting keys. Most of these settings are ‘optional’.
 Certain fields are controlled by SAP irrespective of the settings done. Certain fields in a line item are
controlled by the setting for the corresponding GL account. For example the tax related fields are
controlled by the tax settings done for the GL account.
 If the field status changes result in a conflict between Posting key and GL account then the system
might give a runtime error. Any change which makes a field ‘Mandatory’ or ‘Suppressed’ must
be done with care.
Page 38 of 135
6.1.4.4.1.3 Allocate company code to field status variants
In this step, you allocate the company codes in which you want to use identical field status groups, to the
same field status variant.
CC Company name City Fld stat.var.

XYZ XYZ INDUSTRIES LTD GFS
ABC ABC INDIA LIMITED HYDERABAD, GFS
KERALA
6.1.4.4.1.4 Select screen variant for document entry

The screen variant which you specify for each company code addresses special screens for documents for
several specific functions. You determine the screen variant dependent on the company code.
Company Code Screen Variant

ABC 2
XYZ 2
6.1.4.4.1.5 Maintain subscreens for coding blocks

6.1.4.4.1.6 Define tolerance groups for employees

In this step, you predefine various amount limits for your employees with which you determine:
 the maximum document amount the employee is authorized to post
 the maximum amount the employee can enter as a line item in a customer or vendor account
 the maximum cash discount percentage the employee can grant in a line item
 the maximum acceptable tolerance for payment differences for the employee.
Payment differences are posted automatically within certain tolerance groups. This way the system can post
the difference by correcting the cash discount or by posting to a separate expense or revenue account.
In this respect you define:
 the amounts or percentage rates up to which the system is to automatically post to a separate expense
or revenue account if it is not possible to correct the cash discount or
 up to which difference amounts the system is to correct the cash discount. In this case the cash discount
is automatically increased or decreased by the difference using tolerance groups.
You can also additionally differentiate these settings by company code. Since the same rules usually apply
to a group of employees, enter the values for employee groups. You can then enter amount limits and
tolerances per employee group and company code.
You can also define tolerances without specifying a tolerance group. Leave the field Grp empty in this
case. The stored tolerances are then valid for all employees who are not allocated to a group. There must be
at least one entry for every company code.
You can also specify tolerances for clearing procedures depending on your customers or vendors. The
lower limits from the customer/vendor specifications and employee group are taken in each case during
clearing.
Page 39 of 135
Group 1000
Company code ABC
Company code XYZ
Currency INR
Upper limits for posting procedures

Amount per document 99.999.999.999,00
Amount per open item Account item 99.999.999,00
Cash discount per line item 10.000 %
Permitted payment differences

Amount Percent Cash discount adj. to
Revenue 10.00
Expense 10.00
6.1.4.4.1.7 Allocate users to tolerance groups

In this step, you allocate Financial Accounting employees for whom you want to assign special tolerances
to a group. Tolerances are defined for a group for posting and clearing documents or line items.
6.1.4.4.2 Define validations for posting

Refer para 6.1.4.3.2
6.1.4.4.3 Define substitution in accounting documents

6.1.4.4.4 Define texts for line items

Refer 6.1.4.3.4
6.1.4.4.5 Define line layout for document posting overview

In this step, you define the line layout variants for document posting by specifying which information you
want to have available onscreen (i.e., document number, account number, company code). You can also
assign a display format to each field.
6.1.4.4.6 Define line layout for document change/display

In this step, you define line layout variants by specifying which information you want to have available
onscreen when executing a "Change document" or "Display document" function.
01 Account
A1 Account / description
AA Posting key/acct/bus.area/desc.
BB Account / allocation / description
CC Company code / document
Page 40 of 135
6.1.4.4.7 Select standard line layout for document change/display
In this step, you select standard line layout default values for displaying or changing documents. These
variants are used when the display or change functions are first called up, if you do not select any other
variant.
Transaction Transaction text Layout

code
FB03 Display Document AA
FB02 Change Document AA
FB09 Change Line Items A1
FBD2 Change Recurring Entry AA
FBD3 Display Recurring Entry AA
FBM2 Change Sample Document AA
FBM3 Display Sample Document AA
FBU2 Change Intercompany Document CC
FBU3 Display Intercompany Document CC
FBV0 Post Parked Document AA
FBV1 Park Document AA
FBV2 Change Parked Document AA
FBV3 Display Parked Document AA
6.1.4.4.8 Define document change rules

In this step, you determine under which circumstances fields within posted documents can be changed.
For a number of fields, the system itself determines that they can no longer be changed after posting. This
includes all fields which are central to the principles of orderly accounting, for example, the amount posted
and the account.
The system also prevents the update objects from being changed in documents which have already been
posted, independent of the document change rules. Update objects are elements in the system for which
transaction figures or line items are updated, for example, business area or cost centers (if cost center
accounting is used in the SAP system). Update objects are entered as additional account assignments during
posting.
6.1.4.4.9 Maintain fast entry screens for G/L account items

In this step you define screen templates for the fast entry of G/L account items when posting documents.
You can generate screen templates with the fields account, amount and company code, for example.
Variant : 0001
Lines :2
Description : Travelling expense
Column Offset Current fields

1 3 Posting key
2 6 Account
3 22 Amount
Page 41 of 135
4 39 Business area
5 44 Value date
6 55 Company code
7 60 Plant
8 65 Personnel number
Variant : 0002
Lines :2
Description : Postage & telephone

1 3 Posting key
2 6 Account
3 22 Tax code
4 25 Amount
5 42 Business area
6 47 Value date
7 63 Cost center
Variant : 0003
Lines :2
Description : Printing & Stationery

1 3 Posting key
2 6 Account
3 22 Amount
4 39 Business area
5 44 Value date
6 55 Tax code
Variant : 0005
Lines :2
Description : Factory expenses

1 3 Posting key
2 6 Account
3 22 Amount
4 39 Business area
5 44 Company code
6 49 Plant
7 54 Cost center
Page 42 of 135
6.1.4.5 Default Values for Document Processing
6.1.4.5.1 Define document type and posting key

In this step, you define default values for document types and posting keys which otherwise must be
entered by the user when processing business transactions. Your specifications depend on the function code.
The following SAP standard settings have been retained.
Transaction Name Doc Type Posting Key

F-01 Enter Sample Document SA
F-02 Enter G/L Account Posting SA 40
F-04 Post with Clearing SA
F-05 Post Forgn Currency Valuation SA 40
F-18 Payment with Printout DZ
F-19 Reverse Statistical Posting DA
F-20 Reverse Bill Liability DA
F-21 Enter Posting DA
F-22 Enter Customer Invoice DR 01
F-25 Reverse Check/Bill of Exch. DA
F-26 Incoming Payments Fast Entry DZ
F-27 Enter Customer Credit Memo CN 11
F-28 Post Incoming Payments DZ 15
F-29 Post Customer Down Payment DZ
F-30 Post with Clearing DA
F-31 Post Outgoing Payments DZ
F-33 Post Bill of Exchange Usage DA
F-34 Post Collection DA
F-35 Post Forfaiting DA
F-36 Bill of Exchange Payment DZ 09
F-37 Customer Down Payment Request DZ
F-38 Enter Statistical Posting DA 09
F-39 Clear Customer Down Payment DA
F-40 Bill of Exchange Payment KZ 39
F-41 Enter Vendor Credit Memo DN 21
F-42 Enter Posting AB
F-43 Enter Vendor Invoice KR 31
F-46 Reverse Refinancing Acceptance KA
F-47 Down Payment Request KA
F-48 Post Vendor Down Payment KZ
F-49 Customer Noted Item DA 09
F-51 Post with Clearing AB
F-52 Post Incoming Payments KZ
F-53 Post Outgoing Payments KZ
F-54 Clear Vendor Down Payment KA
F-55 Enter Statistical Posting KA 39
F-56 Reverse Statistical Posting KA
F-57 Vendor Noted Item KA 39
F-58 Payment with Printout KZ
F-59 Payment Request AB
F-63 Park Vendor Invoice KR 31
F-64 Park Customer Invoice DR 01
Page 43 of 135
F-65 Preliminary Posting SA 40
F-66 Park Vendor Credit Memo KG 21
F-67 Park Customer Credit Memo DG 11
F-90 Acquisition from purchase w. vendor KR 31
F-91 Asset acquis. to clearing account KR 31
F-92 Asset Retire. frm Sale w/ Customer DR 01
6.1.4.5.2 Enable fiscal year default

In this step, you determine that a fiscal year is proposed during document display and for document change
functions. The system uses the year which was last used by the user in the work session. the work session.
This option is only useful for company codes working with year-dependent document number ranges.
CC Propose fiscal year

XYZ X
ABC X
6.1.4.5.3 Define default value date

When entering line items, you may need to enter a value date. In this step you can determine, per company
code, whether the CPU date is proposed as the value date.
CC Propose value date

XYZ X
ABC X
6.1.4.5.4 Change message control for document processing

6.1.4.6 External Documents

6.1.4.7 Recurring Entries
6.1.4.7.1 Define entry screens for account assignment models

In this step you define your own screen temnplates for line-by-line document entry via acccount assignment
model, similar to the fast entry of G/L account items.
To do this, you select the fields you require for your screen template by double-clicking on them from a list
of available fields.
Page 44 of 135
6.1.4.7.2 Define run schedules
Postings which recur time and time again can be made using the recurring entry program. To do this, you
enter a recurring entry document, and then execute the recurring entry program at certain intervals or
schedule it for execution.
Run Name
Schedule
01 Recurring cycle for lease rent HP Payment - on the last day of every month
100 SCHEDULE FOR OUTSTANDING EXP
ELEC MONTHLY PRPVISION FOR ELECTRICITY CHARGES
6.1.4.7.3 Define run dates

In this step, you specify the desired run dates for the run schedules.
Note
These dates have to be maintained as per the current requirements.
6.1.4.8 Changes Display
Page 45 of 135
6.1.4.8.1 Define field groups for documents
6.1.4.8.2 Group document fields

6.1.4.9 Accounting Document Archiving

6.1.4.10 Parked Documents

6.1.5 Tax on Sales/Purchases
6.1.5.1 Basic Settings
6.1.5.1.1 Check calculation procedure
Condition Types
Cond Description Acc Cond Calc Cond Manual Entries

Type Seq Categ Type Class
BASB Base Amount K B A Not Possible
JIP1 A/P Sales Tax TAXJ 1 A D No limitation on amount/percentage or value
JM01 APExcise setoff TAXJ 1 A D No limitation on amount/percentage or value
JAO1 AP Add Ex set TAXJ 1 A D No limitation on amount/percentage or value
JS01 AP Spec Ex TAXJ 1 A D No limitation on amount/percentage or value
JM02 AP Ex Inventory TAXJ 1 A D No limitation on amount/percentage or value
JA02 AP Add Ex Inv TAXJ 1 A D No limitation on amount/percentage or value
JS02 AP Spec Ex Inv TAXJ 1 A D No limitation on amount/percentage or value
JIP3 A/P Sales Tax setoff TAXJ 1 A D No limitation on amount/percentage or value
JIP1 A/P Sales Tax TAXJ 1 A D No limitation on amount/percentage or value
JIP2 A/P L Sales Tax Inv TAXJ 1 A D No limitation on amount/percentage or value
JMOD AR EXCISE TAXJ 1 A D No limitation on amount/percentage or value
JAED AR Add Ex TAXJ 1 A D No limitation on amount/percentage or value
JSED AR SP Ex TAXJ 1 A D No limitation on amount/percentage or value
JCES AR CESS TAXJ 1 A D No limitation on amount/percentage or value
JIN1 AR CST TAXJ 1 A D No limitation on amount/percentage or value
JIN2 AR LST TAXJ 2 A D No limitation on amount/percentage or value
JIN4 CST Surcharg TAXJ 1 A D No limitation on amount/percentage or value
Page 46 of 135
JIN5 LST Surcharg TAXJ 2 A D No limitation on amount/percentage or value
JOCT AR OCTROI TAXJ 1 A D No limitation on amount/percentage or value
ZCES AR CESS TAXJ 1 A D No limitation on amount/percentage or value
ZCVD AR CVD TAXJ 1 A D No limitation on amount/percentage or value
JIPX A/P CST Inv Inc TAXJ 1 A D No limitation on amount/percentage or value
Disc
Access Sequences
The following are the details of the access sequence maintained for XYZ INDUSTRIES Ltd.
Access TAXJ 10 India Taxes with Jurisdiction

Table 53 Taxes using Jurisdiction Code
Condition Doc.struc. Doc.field Long Key word Direct value I

ALAND KOMK ALAND Country
MWSKZ KOMK MWSKZ Tax code
TXJCD KOMK TXJCD Tax jurisdiction cde
Tax Procedure
The calculation procedure TAXINJ has been maintained for company code ABC
Step Co Cond From To Man Req Sub Stat Alt calc Alt Acct A Print M Description
No. unt type step step ual tot type Cond key c line a
er only Base c n
Val r dt
100 0 BASB 0 0 0 0 922 Base Amount

110 0 100 0 0 X 352 0 Calculated call
120 0 0 0 0 X 0 0 Sub Total
200 0 JMO1 100 0 0 354 0 VS1 X A/P Eduty for Setoff
205 0 JAO1 200 0 0 968 0 VS2 X A/P AED for Setoff
207 0 JSO1 100 0 0 368 0 VS3 X A/P SED for Setoff
210 0 JMO2 100 0 0 362 0 NVV X A/P Eduty for Inven
212 0 JAO2 100 0 0 365 0 NVV X A/P AED for Inventry
214 0 JSO2 100 0 0 369 0 NVV X A/P SED for inventry
215 0 0 0 0 X 0 0 Sub total
217 0 JIP3 215 0 0 6 370 0 VS5 A/P Sales Tax setoff
220 0 JIP1 215 0 0 6 371 0 ZV1 A/P C Sales Tax Inv
221 0 JIPX 215 0 0 6 371 923 ZV1 A/P CST Inv Inc Disc
230 0 JIP2 215 0 0 6 371 0 ZV2 A/P L Sales Tax Inv
510 0 JMOD 120 0 0 6 0 0 EX2 A/R Excise Duty
511 0 ZMOD 120 0 0 X 363 0 EXY Ex.Duty(Free Sample)
512 0 JAED 510 0 0 366 0 EX2 A/R Add. Excise Duty
513 0 JSED 120 0 0 360 0 EX2 A/R Sp. Excise Duty
514 0 JCES 120 0 0 367 0 CES A/R Cess
515 0 0 0 0 X 0 0 Sub total
520 0 JIN1 515 0 351 0 0 MWS A/R Centr. Sales Tax
525 0 JIN6 515 0 0 0 0 MW1 A/R CST FOR FI
Page 47 of 135
530 0 JIN2 515 0 352 0 0 MW3 A/R Local Sales Tax
540 0 JIN4 520 520 351 0 0 MWS CST surcharge
550 0 JIN5 530 530 352 0 0 MW3 LST surcharge
560 0 JOCT 100 0 0 0 0 MW4 OCTROI
570 0 ZCES 100 0 0 0 0 CES A/R Cess
580 0 ZSCV 100 0 0 0 0 CVD Countervailing Duty
6.1.5.1.2 Assign country to calculation procedure

In this activity, you enter the key for the calculation procedure which determines the conditions which are
allowed per document and which defines the sequence of the conditions in the document for each country.
TAXINJ is the procedure assigned to India.
6.1.5.1.3 Check and change settings for tax processing
Process Tax type Not Posting indic. Not discnt rel.

deductible
PROCESS Tax Type Not Deductible Posting Ind

ASB 3 2
CES 1 2
CVD 1 2
ESA 1 2
ESE 2 2
EX1 2 2
EX2 1 2
EXY 1 2
EXZ
IU1 1 2
IU2 1 2
IU3 1 2
IU4 1 2
MW1 1 2
MW2 1 2
MW3 1 X 2
MW4 1 2
MWS 1 2
NAV 2 X 2
NVV 2 X 3
ST1 1 2
ST2 1 2
VS1 2 2
VS2 2 X 2
VS3 2 X 2
Page 48 of 135
VS4 2X 2
VS5 2 2
VST 2 2
ZUG 4 3
ZUS 3 2
ZV1 2X 3
ZV2 2X 3
Note: Tax Type 1=Output Tax

2=Input Tax
3=Additional Tax
4=Not Tax Relevant
Posting Indicator 1=No posting required

2=Separate Line Item
3=Distribute to relevant expense / revenue items
6.1.5.1.4 Specify structure for tax jurisdiction code

In this activity, you determine the structure of the tax jurisdiction code. This code is used for calculating
taxes which are defined below the federal level (for example, US taxes, Canadian taxes). The tax
jurisdiction code can be subdivided into a maximum of four levels (for example, state/county/city/district).
This way the tax rate is defined per level and the tax value is calculated individually per level. If an entry
exists for a calculation procedure, then tax processing for this calculation perocedure is switched over
automatically to the tax jurisdiction code method.
Proc. Length Length Length Length Description Tx ln

TAXINJ 02 02 Tax procedure for India X
6.1.5.1.5 Define tax jurisdiction code

In this activity, you specify the tax jurisdiction code per tax calculation procedure. The tax jurisdiction code
consists of up to four parts depending on the tax jurisdiction code structure for the relevant calculation
procedure: the state code, the county code, the city code and a local code component. The system uses these
component parts to determine the tax rate for each tax authority.
DiN Indicates that tax on sales/purchases is not included in the base amount
used for calculating cash discount.
TxN Indicates that the cash discount amount is deducted from the base amount
used for calculating taxes on sales/purchases.
Tax juris.code DiN TxN Description

9900 Dummy
9999 Dummy
IN00 Central Sales Tax (CST)
IN01 Local Sales Tax (LST)
Page 49 of 135
6.1.5.1.6 Change message control for taxes
In this activity you can set system messages to appear as you require them.
You can
 determine whether a message is issued as a note in the dialog box or in the footer
 change warnings into error messages
 switch off warnings and error messages
SAP standard settings are used.
6.1.5.1.7 External Tax Calculation

6.1.5.1.8 Fiscal Regional Codes

6.1.5.2 Calculation
6.1.5.2.1 Define taxes on sales/purchases codes

You have to define taxes on sales/purchases codes for each country in which a company code is located.
Each code represents one or more tax rates for different tax types.
It may be necessary to define a tax code for a tax rate with value 0. This tax code is needed for sales which,
although not taxed, still have to be reported to the tax authorities.
You may not delete or change taxes on sales/purchases codes and their definitions as long as items with
these codes exist in the system. Otherwise, the system would display the tax amounts with incorrect tax
rates in the corresponding reports. In addition, the system would determine incorrect amounts during a tax
adjustment in payment transactions.
Refer Appendix D for details.

Note
The tax rates were being changed even as the document was being prepared.
6.1.5.2.2 Allocate company code to document date for tax

determination
In this step you specify per company code the following data necessary for processing taxes with
jurisdiction codes: whether the baseline date for determining the tax percentages should be the posting date
(default date) or the document date.
The system usually takes the posting date for this purpose. However, if you want the system to determine
tax percentages on the basis of the document date, you must configure the system accordingly at this point.
For ABC India Ltd., the document date is the baseline date.
For XYZ INDUSTRIES Ltd., the document date is the baseline date.
Page 50 of 135
6.1.5.2.3 Specify base amount
In this step, you determine for every company code whether the base amount is to be reduced by the cash
discount part for the calculation of the taxes on sales/purchases.
If taxes are calculated using jurisdiction codes, the settings in the company code table do not have any
effect. Base amount determination is controlled in the jurisdiction code definition. This type of tax
calculation is used, for example, in the US.
This option is set for ABC India Limited

This option is set for XYZ INDUSTRIES Limited
6.1.5.2.4 Change foreign currency translation

The tax amounts are generally translated using the exchange rate predefined by the tax base amounts. If on
the other hand, you want to enter an alternative exchange rate for the translation when entering a document
or have it defaulted, you must make this default setting here.
This option is not set and not relevant for ABC India Limited.
6.1.5.3 Posting
6.1.5.3.1 Define tax accounts

In this step, you specify to which accounts the different tax types are to be posted. The system determines
these accounts for automatic postings.
Refer Appendix D for details
6.1.5.3.2 Define account for exchange rate difference posting

If you use a separate exchange rate for the translation of taxes for postings in foreign currency or want the
exchange rate according to posting date and document date to be proposed, an exchange rate difference in
local currency might result. You must therefore define an account for the exchange rate difference posting.
No settings done for ABC India Ltd.

No settings done for XYZ INDUSTRIES Ltd.
6.1.5.3.3 Allocate tax codes for non-taxable transactions

In this step you define an incoming and outgoing tax code for each company code, to be used for posting
non-taxable transactions to tax-relevant accounts. Transactions posted like this are, for example; goods
issue delivery, goods movement, goods receipt purchase order, goods receipt production order, order
accounting.
Page 51 of 135
Company Code Company Name Input Tax Output Tax Jurisdiction
Code
ABC ABC India Ltd. V0 P1 9900
XYZ XYZ INDUSTRIES V0 P1 9900
Ltd.
6.1.6 Correspondence
6.1.6.1 Define correspondence types

In this step, you create your own correspondence types or change the specifications for the standard
correspondence types. A correspondence type represents the type of letters in the system. You must create a
correspondence type for the possible correspondences for each type of letter, which you need.
6.1.6.2 Allocate programs for correspondence types

In this step, you define the print program and the selection variant corresponding to each correspondence
type. The selection variant is used when printing the requested correspondence.
CC Correspondence Name of print Name of

program variant
XYZ SAP02 RFKORD00 SAP02

ABC SAP02 RFKORD00 SAP02
6.1.6.3 Define forms for correspondence

Sap settings
6.1.6.4 Define form names for correspondence print

Sap settings
.
6.1.6.5 Define sender details for correspondence

Sap settings
.
Page 52 of 135
6.1.6.6 Determine call-up functions
No settings done
6.1.6.7 Develop enhancements for correspondence

No settings done
6.1.6.8 Define sort variants for correspondence

SAP standard settings used.
6.1.6.9 Define sort variants for line items

In this step, you define correspondence sort variants for the line item output sequence in letters.
6.1.7 Financial Calendar
6.1.7.1 Define tasks in financial calendar

In this step, you define the tasks you want to schedule in the system using the financial calendar. You can
schedule tasks such as programs, payment runs and dunning runs.
The following SAP standard settings are used.
Task Name of task Tech.name Parameter Type

SAP_001 Create balance sheet and P+L RFBILA00 * Prog
SAP_002 Carry out payment run F110 * Pmnt Run
SAP_003 Create advance return for tax on RFUMSV00 * Prog
sales/purchases
SAP_004 Carry out dunning run F150 * Dunn Run
SAP_005 Create recurring entry documents SAPF120 * Prog
SAP_006 Automatic clearing of G/L SAPF123 * Prog
accounts
SAP_008 Create correspondence on request SAPF140 * Prog
SAP_009 Preparation for Executive Board TS00007804 SAP_009 Manual
meeting
6.1.7.2 Define schedule for financial calendar

In this step, you define your schedule. In the schedule, all tasks that are to be displayed at the same time are
grouped together.
Schedule ABC
Name ABC India Ltd.
Organization object
Dependent Units
Factory cal.ID PC
Holiday cal.ID PH
Page 53 of 135
6.1.7.3 Allocate tasks to schedule for financial calendar
All the standard tasks have been allocated to the schedule ABC ABC India Limited
6.1.8 Delete transaction data
6.1.9 Tools
6.1.9.1 Data Transfer

No settings have been done under this heading for any data transfer.
6.1.9.2 Delete transaction data
6.1.10Authorization Management
The authorizations are maintained by the System Administrators. No settings have been done under this
heading.
Page 54 of 135
6.2 General Ledger Accounting
6.2.1 G/L Accounts

The chart of accounts XYZ created for ABC India Limited was created using the two step manual process/
The accounts were created using the Accounting Menu. The other options under this heading are not
relevant.
6.2.1.1 Master Data
6.2.1.1.1 Revise chart of accounts
6.2.1.1.2 G/L Account Creation
6.2.1.1.2.1 Copy (Alternative 1)
6.2.1.1.2.2 Copy with Reference (Alternative 2)
6.2.1.1.2.3 One-Step Manual/Automatic (Alternative 3)
6.2.1.1.2.4 Two-Step Manual (Alternative 4)
6.2.1.1.2.4.1 Maintain chart of accounts list

Enter the charts of accounts that you want to use in your organization (at client level) in the chart of
accounts list.
Chart of accts XYZ

Description XYZ CHART OF ACCOUNTS
Maint.language E
Alternative language
Corp.chart/accts
Blocked
Length of G/L account number 6
6.2.1.1.2.4.2 Allocate company code to a chart of accounts

For every company code, you determine which chart of accounts is to be used. Several company codes can
use the same chart of accounts.
Code Company Name Chart of Country Chart

Accoutns of Accounts
ABC ABC India Limited XYZ
XYZ XYZ INDUSTRIES Ltd. XYZ
Page 55 of 135
6.2.1.1.2.4.3 Define screen layout per account group (G/L accounts)
When creating a G/L account, you must specify an account group.
Via the account group, you determine
 The interval in which the account number must be
 Which fields are ready for input or must be filled when creating and changing master records
With the account groups, you group accounts together according to the above-mentioned criteria (group of
the profit and loss statement accounts, group of the asset accounts, group of the material accounts, for
example).
Account Groups
Chart of A/C From To Description

Accounts Group
XYZ APPR 495000 495100 APPROPRIATIONS
XYZ BACA 190000 191999 CLEARING ACCOUNTS
XYZ BCBC 224000 225499 BAL WITH SCHEDULED COMM
BANKS
XYZ BCCH 223000 223199 CASH ON HAND
XYZ BCIS 220000 221799 INVENTORIES
XYZ BCSS 222000 222599 SUNDRY DEBTORS
XYZ BFGL 200000 201799 FIXED ASSETS
XYZ BILS 180000 180399 BANK SUB-ACCTS FOR BILLS
NEGOT
XYZ BITQ 210000 210999 INVESTMENTS
XYZ BLAC 225600 226699 ADVANCES
XYZ BLAD 226900 227299 DEPOSITS - STATUTORY
XYZ BLAO 228000 228199 DEPOSITS - OTHERS
XYZ BLAT 227300 227399 ADVANCE TAX PAID
XYZ BLIA 229000 229099 INTERST ACCRUED ON DEPOSITS
XYZ BLIU 226700 226899 INTER-UNIT TRANSFERS
XYZ BMEP 230200 231499 MISCELLANEOUS EXPENDITURE
XYZ BOBC 225500 225599 BAL WITH OTHER BANKS
XYZ CLPD 150000 164999 PROVISIONS
XYZ CPED 142000 146999 OTHER LIABILITIES
XYZ CPIA 147000 147099 INTEREST ACCURED BUT NOT DUE
XYZ CPSC 140000 140999 SUNDRY CREDITORS
XYZ DUTC 390000 390399 DUTIES & TAXES COLLECTED
XYZ GAFF 227600 227999 GROUP COMPANY ACCOUNTS
XYZ INUT 227420 227599 INTER-UNIT TRANSFERS
XYZ ITPR 492000 492199 INCOME TAX - P&L DEBIT
XYZ MISC 499000 499999 MISCELLANEOUS ACCOUNTS
XYZ PCRO 400000 402399 RAW MATERIAL CONSUMPTION
XYZ PEDN 480000 480999 DEPRECIATION
XYZ PEPA 490000 490099 PRIOR YEAR ADJUSTMENTS
XYZ PIFL 450000 454000 INTEREST & FINANCE CHARGES
XYZ PMCP 420000 420199 CONVERSION & PROCESSING
CHARGE
XYZ PMOD 470000 471499 OTHER DEFERRED EXPENSES
Page 56 of 135
XYZ PMPF 420200 420399 POWER & FUEL
XYZ PMRB 423000 423599 REPAIRS & MAINTENANCE
XYZ PMWC 422500 422999 FACTORY EXPENSES
XYZ POEI 460000 464999 OTHER EXPENSES
XYZ POIC 311200 311399 CONVERSION/PROCESSING INCOME
XYZ POII 310000 311199 OTHER INCOME
XYZ PPCP 410200 410399 PF & ESI CONTRIBUTION
XYZ PPMR 410900 410999 MANAGERIAL REMUNERATION
XYZ PPSW 410000 410199 SALARIES, WAGES & BONUS
XYZ PPWE 410400 410899 WELFARE EXPENSES
XYZ PSDB 440000 440799 SALES & DISTRIBUTION
XYZ PSEI 301000 301199 EXPORT INCENTIVE
XYZ PSFE 300000 300999 SALES
XYZ PYAD 330000 330199 PRIOR YEAR ADJUSTMENTS
XYZ RSAL 111800 112999 ACCUMULATED DEPRECIATION
XYZ RSCR 110000 111799 RESERVES & SURPLUS
XYZ SCEC 100000 100199 EQUITY SHARE CAPITAL
XYZ SCPC 100200 100399 PREFERENCE SHARE CAPITAL
XYZ SHAR 227400 227419 ADVANCE TO SUBSIDIARIES
XYZ SHMR 240000 240099 SHARE MONEY RECEIVABLE
XYZ SLRT 405000 405199 SALES RETURNS
XYZ STBP 320000 321199 INC / DEC IN INVENTORY
XYZ STFR 120000 121999 SECURED TERM LOANS
XYZ SWBP 122000 124499 WORK CAP LOANS - BANKS
XYZ UCDV 147500 147599 UNCLAIMED DIVIDEND
XYZ ULFD 130000 130599 UNSEC LOANS - FIXED DEPOSITS
XYZ ULSB 130600 131399 SHORT TERM LOANS & ADVANCES
6.2.1.1.2.4.4 Define screen layout per activity (G/L accounts)

In this step, you can determine the entry screens depending on the following transactions for the G/L
account master data:
 Display
 Create
 Change
All the fields are optional for all the three transactions listed above. This is the SAP
standard.
6.2.1.1.2.4.5 Develop functional enhancements for G/L accounts
No settings done.
6.2.1.1.2.4.6 Define retained earnings account

Allocate a retained earnings account (balance sheet carry forward account) to every income statement
account via an income statement account type. Enter it in the chart of accounts area of each income
statement account.
Page 57 of 135
At the change of the fiscal year, the balance of the income statement account is carried forward to the
retained earnings account. Per chart of accounts, you can define one or more income statement account
types and allocate them to the retained earnings account.
The posting keys which the system uses for automatic posting are also maintained in this step.
For XYZ CHART OF ACCOUNTS the following account is defined for the Process BIL Balance
carryforward
Income Statement Account Account

X 111400
6.2.1.1.2.4.7 Sample Accounts

No settings have been under this section.
6.2.1.1.2.4.8 Specify text IDs for chart of accounts area

In this step, you define text IDs for the chart of accounts area of a G/L account master record.
Texts can be entered for every text ID in the master record of the G/L account. In this way, you can store
information on the account in the master record, such as the use of the account in Financial Accounting.
The following SAP standard settings have been maintained. (SKA1)
ID Meaning Relevant text

0001 Account assignment info Yes
0002 Accounting note Yes
0003 SAP account assignment info Yes
6.2.1.1.2.4.9 Create G/L account in chart of accounts

In this step, you create G/L account master records in the chart of accounts.
Accounts were created using the Accounting menu option. No settings done under this heading. Refer
Appendix C for details of the GL accounts in XYZ
Note
 The chart of accounts given in Appendix is as it existed in the system on 04.05.1999
6.2.1.1.2.4.10 Specify text IDs for company code area

In this step, you define text IDs for the company code-dependent area of a G/L account master record.
For every text ID, a text can be entered when maintaining the master records. In this way, you can store
information on the account in the master record, such as the use of the account in Financial Accounting.
The following SAP standard settings have been maintained. (SKB1)
ID Meaning Relevant text

0001 Account assignment info Yes
Page 58 of 135
0002 Accounting note Yes
0003 SAP account assignment info Yes
6.2.1.1.2.4.11 Create G/L account in company code

In this step, you create G/L account master records in the company code area.
Accounts were created using the Accounting menu option. No settings done under this heading.
6.2.1.1.3 Delete
No settings done under this heading.
6.2.1.1.4 Transport chart of accounts

6.2.1.1.5 Changes Display

In the following steps, you make the specifications which affect the display of change documents for G/L
account master records. To do this, you first of all define field groups. These are used to select certain fields
in the program for displaying change documents. Afterwards you group together the fields which are to be
evaluated into field groups.
6.2.1.1.6 Matchcodes
6.2.1.1.6.1 Check search fields for matchcodes (G/L accounts)

In this step, you can decide whether you want to use the substitute field SKAT-MCODF for the G/L account
long text or for the G/L account short text.
Field no. Field name Field description

1 TXT50 G/L acct long text
6.2.1.1.6.2 Maintain matchcodes for G/L accounts

In this step, you define matchcodes for the G/L account master records. If you want to change or display a
G/L account master record, but no longer know the account number, you can search for it using a so-called
matchcode. The system saves certain fields from a G/L account master record in the matchcode. You can
search for the G/L account using these fields, the so-called matchcodes.
Apart from standard SAP match codes, one new match code with extended account description display has
been created.
Page 59 of 135
6.2.1.2 Line Items
6.2.1.2.1 Line Item Display

In the following steps, you make the settings for displaying G/L account line items.
6.2.1.2.1.1 Determine standard sorting for line items

In this step, you determine rules by which the system fills the Allocation field during document entry. Data
can be transferred to the field from the document header or from the line item. The field contents determine
the standard sort sequence for the line items. Every rule is stored under a freely assignable key.
Enter the required key for the account in the master records for G/L accounts. This key is proposed for the
account when entering a business transaction.
The following SAP standard setting is used.

Rules for 'Allocation' Field Layout
Sort key Description

000 Allocation number
001 Posting date
002 Doc.no., fiscal year
003 Document date
004 Branch account
005 Loc.currency amount
006 Doc.currency amount
007 Bill/exch.due date
008 Cost center
009 External doc.number
010 Purchase order no.
011 Plant number
012 Vendor number
014 Purchase order
015 Personnel number
016 Settlement period
017 Settl.per., pers.no.
018 Asset number
021 Segment text
022 One-time name / city
023 One-time city / name
024 Document header text
025 CPU date
026 Pmnt per.bslne date
027 Value date
028 Asset number
029 Pstng month, vendor
031 Customer number
032 Pstng yr,month,curr.
033 Cost center
034 Month, cost center
036 Order
037 Currency key
039 Project number
Page 60 of 135
055 Fiscal year, month
060 Test0
061 Test1
065 Test5
100 Material no.
101 Cash discnt clearing
6.2.1.2.1.2 Define line layout

In this step, you determine which information is to be made available on the screen when displaying line
items (for example, document number, document type, amount).
The following variants have been used.
Line layout Description Special

D0 Standard
D1 Payment terms
D2 Clearing data
D3 Dunning data
D4 Branch account
D7 Customer variant 1 X
D8 Standard with billing document
D91 One-time account data X
S0 Standard with PO
S10 Standard with amount in LC & Quantity X
S11 Additional account assignment X
S12 Bill of exchange data X
S13 Std with amt & qty X
SLC Standard with amount in LC
ZZ2 Material details X
ZZI Line layout with internal order
ZZZ Line Layout with Ref Doc No X
6.2.1.2.1.3 Define special fields for selecting/finding/sorting data

In this step, you define special fields for the document which are available for the Sort, Find and Select
functions when displaying line items.
Table Name Field Name

BSEC NAME1
BSEG ANLN1
BSEG BEWAR
BSEG EBELN
BSEG MATNR
BSEG MEINS
BSEG MENGE
Page 61 of 135
6.2.1.2.1.4 Choose selection fields
In this step, you specify the fields via which the system is to make selections when displaying line items.
In addition to standard SAP fields, following has been added:
Field name Description

GSBER Business area
6.2.1.2.1.5 Choose sort variants

6.2.1.2.1.6 Define totals variants

In this step, you define the fields for up to three levels by which the line items are to be totalled.
The following SAP standard settings have been used.
Totals variant Description

SU1 Document type - posting key
SU2 Document type - document date
SU3 Business area - month
SU4 Business area
SU5 Year - month - posting date
SU6 Posting keys
SU7 Currency
SU8 Document date - posting key
SU9 Sp. G/L indicator
SUB Document Type & Qty
SUA Assignment
SUV Tax code
6.2.1.2.1.7 Choose standard line layout and standard totals variant

In this step, you define what information is to be available as a standard when displaying line items and via
which fields the line items are to be totalled as a standard. If you display the line items and have not
selected any other line layout variant, the standard variant is displayed. The same is true of the standard
totals variant.
Transaction Transaction text Line Layout Totals Variant

code
FBL1 Display Vendor Line Items D0 SU1
FBL2 Change Vendor Line Items D0 SU1
FBL3 Display G/L Account Line Items S10 SU7
FBL4 Change G/L Account Line Items S10 SU7
FBL5 Display Customer Line Items D0 SU1
FBL6 Change Customer Line Items D0 SU1
FBRA Reset Cleared Items D2
FCHK Check Tracing Initial Menu D0
FD10 Customer Account Balance D0 SU1
FD11 Customer Account Analysis D3 SU1
FD32 Change Customer Credit Management D0 SU2
Page 62 of 135
FD33 Display Customer Credit Management D0 SU2
FK10 Vendor Account Balance D0 SU1
FS10 G/L Account Balance S10 SU7
6.2.1.2.1.8 Choose additional fields

Standard settings have been retained
6.2.1.2.1.9 Choose search fields

6.2.1.2.1.10 Choose sort fields

6.2.1.2.1.11 Choose totals fields

6.2.1.2.1.12 Define master record information

6.2.1.2.1.13 Maintain work list for line item display

You can group together all G/L accounts for which a common line item and balance display should be
possible, as well as those for which open item processing should be possible, using work lists.
You define work lists for G/L accounts manually. Automatic work list maintenance is not possible.
When manually defining a work list, enter the object keys you want (G/L account numbers, for example)
for objects to be processed together.
No settings have been done. Work lists can be created using transaction menu.
6.2.1.2.2 Open Item Processing

In this step, you determine which information is to be made available on the screen when processing line
items (for example, document type, document number, account number, company code).
The following standard variants are used.
Line layout Description

A1 Allocation / document number
K1 Document number
K2 Line LinelayoutWith Ref Doc(BILL NO)
K3 Account number
K4 Account number / company code
K5 Company code
K7 Bill of exchange payment request
SA Order
Page 63 of 135
SB Purchasing document
SP Project
T1 Original document number
6.2.1.2.2.2 Choose standard line layout

In this step, you define what information is to be available as a standard when processing line items. If you
display the line items and have not selected any other line layout variant, the standard variant is displayed.
The following standard variants are used.
Transaction Transaction text Customer Vendor GL

code
FB05 Post with Clearing K1 K1 A1
FB1D Clear Customer A1
FB1K Clear Vendor A1
FB1S Clear G/L Account A1
FBW2 Post Bill of Exch.acc.to Pmt Request K7 K7
FBZ1 Post Incoming Payments K1 K1 K1
FBZ2 Post Outgoing Payments K1 K1 K1
FBZ3 Incoming Payments Fast Entry K1 K1 K1
FBZ4 Payment with Printout K1 K1
Page 64 of 135
In this step, you specify the fields via which the system is to make selections when processing line items.

In this step, you define the fields via which it is to be possible for the system to find individual items.

In this step, you define the fields via which it is to be possible for the system to sort items.
6.2.1.2.2.6 Maintain work list for processing open items
6.2.1.3 Balances
6.2.1.3.1 Maintain work list for displaying balances
6.2.2 Business Transactions
6.2.2.1 G/L Account Posting
6.2.2.1.1 Carry out or check document settings

In this step you can check the document settings you have already made in the Implementation Guide for
"Financial accounting global settings", or if necessary make the settings for the first time. The
documentation necessary for the various steps can be found in the Implementation Guide for "Financial
accounting global settings".
Settings already documented under the relevant sections.
6.2.2.1.2 Carry out or check settings for parked documents

Page 65 of 135
6.2.2.1.3 Correspondence: Internal Document
Documented under the section Correspondence.
6.2.2.2 Prepare cross-company code transactions

In this activity you define the accounts for the clearing entries the system makes when posting cross-
company code transactions. These clearing entries represent the receivables and payables between company
codes which result from central purchasing or payment.
You can specify G/L accounts as well as customer and vendor accounts for clearing between company
codes.
No settings have been done. Not relevant for the current system.
6.2.2.3 Open Item Clearing
6.2.2.3.1 Define accounts for exchange rate differences

In this activity you define the numbers of the accounts to which you want the system to automatically post
realized exchange rate differences when clearing open items.
In clearing open items, the system posts any realized gains or losses (realized exchange rate differences).
You therefore need to define gain and loss accounts.
To automatically post exchange rate differences when clearing open items, you have to specify the
reconciliation accounts for customers and vendors in the "G/L account" field. If, for example, you want to
clear a foreign currency open item on the debit side, you have to enter a receivables account in the "G/L
account" field.
To automatically post exchange rate differences when clearing bank sub-accounts, you have to enter the
numbers of the bank sub-accounts in the "G/L account" field.
G/L Curr Bal.sheet Real.ex. Real.ex. Transl.l Transl. Val.loss Val.gain Bal.sheet Bal.sheet
account adj. losses gains oss 1 gain 1 1 1 adj.gain adj.loss
120500 USD 120500 453000 300401 499511 499511

120501 120501 453000 300401 499512 499512
120502 120502 453000 300401 499513 499513
120505 120505 453000 300401 499516 499516
120800 120800 453000 300401 499501 499501
120801 120801 453000 300401 499502 499502
120802 120802 453000 300401 499503 499503
120803 120803 453000 300401 499504 499504
120804 120804 453000 300401 499505 499505
120805 120805 453000 300401 499506 499506
120806 120806 453000 300401 499507 499507
120807 120807 453000 300401 499508 499508
121400 121400 453000 300401 499517 499517
121850 120800 453000 300401 499509 499509
140000 140250 453000 300401 453000 300401
140201 140250 453000 300401 453000 300401
140400 140250 453000 300401 453000 300401
140500 140250 453000 300401 453000 300401
Page 66 of 135
140600 140250 453000 300401 453000 300401
222000 222090 453000 300401 453000 300401
222001 222090 453000 300401 453000 300401
Note
If the currency code and the type have been omitted in the above settings, means that the account settings
are applicable for all currencies and types. This is done as no requirement exists for having different
account settings for different currencies or types.
6.2.2.3.2 Define posting keys for clearing

In this step, you define posting keys that the system uses for automatically created line items during
clearing procedures. The payment program uses these posting keys as well.
If you use the posting keys from the standard system, you can take over the defined posting keys without
changing them.
SAP standard settings have been used for the following procedures.
Clearing procedure Description

AUSGZAHL Outgoing payment
EINGZAHL Incoming payment
GUTSCHRI Credit memo
UMBUCHNG Transfer posting with clearing
6.2.2.3.3 Check settings for processing open items

Check whether you have made the settings for manually processing open items.
Settings documented under relevant sections.
6.2.2.3.4 Prepare automatic clearing

In this step, you specify criteria according to which the open items of an account are grouped together for
automatic clearing. The program clears open items of a group if the balance in local and foreign currency is
zero.
Description Additional Rules For Automatic Clearing
AccTy From To Acct Crit1 Crit2 Crit3 Crit4

Acct
D 1 100000 ZUONR BUALT
D A Z ZUONR
K 1 100000 ZUONR BUALT
K A Z ZUONR
S 0 999999 EBELN EBELP
Page 67 of 135
6.2.2.4 Bank Account Interest Calculation
6.2.2.4.1 Interest Calculation Global Settings
6.2.2.4.1.1 Define interest calculation types

In this step, you create your interest indicators and specify that they are to be used for
account balance interest calculation.
Interest indic. Int calc. type Name New ICID
1 P Standard itm int.cal

2 S Standard bal.int.cal
3 S Bal.int.calc.term 2
4 P Item int.calc.term 2
5 S Bal.int.calc.term 3
10 S Pjct interest calc.
B1 S Bal.int for trial
C1 P Standard itm int.cal
C2 S Standard bal.int.cal
P1 P Standard itm int.cal
P2 S Standard bal.int.cal
P3 P Item int.calc.term 2
P4 S Bal.int.calc.term 2
P5 S Bal.int.calc.term 3
PP S Pjct interest calc.
T1 P INTEREST FOR TEST
T9 S Bal.int.calc.term9
6.2.2.4.1.2 Prepare account balance interest calculation

In this activity you make general interest calculation specifications for each interest indicator. These
specifications include the period determination, the interest determination, the interest processing, the
output controls, and the payment terms.
For ABC Interest calculation indicator the following settings are used:
Int.calc.indicator P2
Interest calc.freq. 1
Settlement day 1
Calendar type G 28,….31/365
Page 68 of 135
Settlement day
Calendar type G
Settlement day 1
Calendar type G
Int.calc.indicator PP
Settlement day
Calendar type G
6.2.2.4.2 Interest Calculation
6.2.2.4.2.1 Define reference interest rates

In this step, you define your reference interest rates by entering a key and a mnemonic name. All other
fields are purely informative.
Reference Long text for reference Short Effective Currency

interest rate from
CRINT Credit Interest on balance CRINT 01.04.1997 INR
DRINT Debit Interest on balance DRINT 01.04.1997 INR
6.2.2.4.2.2 Define time-dependent terms
In this step, you specify how the interest rate is to be determined for each interest indicator. You can make
this specification dependent on currency and a validity date.
You specify a condition for each entry. This determines which interest type it is (debit or credit interest).
P1 INR 01.04.1998 1 Debit interest: arrears interest
P1 INR 01.04.1998 2 Credit interest: arrears interest
P1 USD 01.01.1999 1 Debit interest: arrears interest
P1 USD 01.01.1999 2 Credit interest: arrears interest

Page 69 of 135
P2 INR 01.04.1998 1 Debit interest: balance interest
P2 INR 01.04.1998 2 Credit interest: balance interest
P3 INR 01.04.1998 1 Debit interest: arrears interest
P3 INR 01.04.1998 2 Credit interest: arrears interest
PP INR 01.04.1998 1 Credit interest: balance interest
PP INR 01.04.1998 2 Debit interest: balance interest
T1 USD 01.04.1998 1 Debit interest: arrears interest
T1 USD 01.04.1998 2 Credit interest: arrears interest
6.2.2.4.2.3 Enter interest values

In this step, you specify the required interest rates dependent on the date for the reference interest rates.
Page 70 of 135
Reference Short text Valid from Int rate
ABC1 ABC1 01.04.1998 9.0000000
ABC11 ABC11 01.04.1998 9.0000000
ABC1C ABC1 01.04.1998 0.0150000
ABC2 ABC2 01.04.1998 9.0000000
ABC3 ABC3 01.04.1998 9.0000000
T1P T1P 01.04.1998 10.0000000
T2P t2p 01.04.1998 12.0000000
6.2.2.4.2.4 Define transaction types

In this step, you specify your own function modules instead of the modules delivered with the standard.
Long text Short text Function module

Credit interest for Crd.int. CREDIT_INT_RATE_DETERMINE
days overdue
Credit interest acct Crd.int. INT_RATE_DETERMINE
bal.interest calc.
Debit interest for Deb.int. DEBIT_INT_RATE_DETERMINE
days overdue
Debit interest acct Deb.int. INT_RATE_DETERMINE
bal.interest calc.
6.2.2.4.3 Interest Posting
6.2.2.4.3.1 Prepare G/L account balance interest calculation

In this activity you define the specifications for posting interest calculated on G/L account balances.
The system determines the accounts using the posting interface in application 0004 (account interest scale).
No interest posting is planned. But the following settings have been made.
Bus txn Co Interest Debit Account Credit Account

code ind Symb Symb
1000 + + 40 1000 50 0001
1010 + + 40 0011 50 2000
1020 + + 40 1000 50 0013
1030 + + 40 1000 50 0015
Page 71 of 135
2000 + + 40 0002 50 2000
2010 + + 40 2000 50 0012
2020 + + 40 0014 50 2000
2030 + + 40 0016 50 2000
Chrt/accts Account symbol Currency Account

XYZ 0001 + 310002
XYZ 0002 + 450560
XYZ 0011 + ++++++++++
XYZ 0012 + ++++++++++
XYZ 0013 + ++++++++++
XYZ 0014 + ++++++++++
XYZ 0015 + ++++++++++
XYZ 0016 + ++++++++++
XYZ 1000 + 229000
XYZ 2000 + 147000
Account symbol Name

0001 Interest received
0002 Interest paid
0011 Pt vl.min.int.earned
0012 Pst vl.min.int.paid
0013 Pst vl.dt.int.earned
0014 Past val.dt.int.paid
0015 Calc.per.int.earned
0016 Calc.period int.paid
1000 G/L account (earned)
2000 G/L account (paid)
6.2.2.5 Planning
6.2.2.5.1 Prepare planning

In this activity you fulfill the requirements for planning. To do this, you have to:
 Open the periods required for planning.
 Generate structures for the financial statement version you want to plan.
No settings done.
6.2.2.5.2 Define distribution keys

When planning your accounts, you specify amounts that are distributed among the different periods using
distribution keys. The standard system is delivered with distribution keys which cover most of the usual
distribution methods. If you require your own distribution keys, you can create them in this activity.
No settings done.
Page 72 of 135
6.2.2.6 Closing
6.2.2.6.1 Valuate
6.2.2.6.1.1 Foreign Currency Valuation
6.2.2.6.1.1.1 Define valuation methods

In this step, you define your valuation methods for the open items. With the valuation method, you group
specifications together which you need for the balance and individual valuation. Before every valuation
run, you specify the required valuation method.
SAP standard
Valuation method KTO
Description FC bal.per acct,a/c bal -always val- G and B
Document type SA
Display By Line Item
Debit bal.exch.rate type G
Credit bal.exch.rate type B
Principle Always Valuate
Determine rate type from Account Balance
Valuation method KTO1

Description FC bal. always valuate-OI- G & B types-OI
Document type SA
Determine rate type from Invoice Reference
Valuation method ABC

Description FC val exchange rate type B-always valuate-a/c bal
Document type SA
Debit bal.exch.rate type B
Valuation method ABC 1
Description FC val exch rate type B-open item-always-a/c bal
Document type SA
Debit bal.exch.rate type B
Page 73 of 135
Description FC valuation exchange rate type G-always-a/c bal
Document type SA
Credit bal.exch.rate type G

Description FC valuation exchange rate type G For open item
Document type SA
Credit bal.exch.rate type G
6.2.2.6.1.1.2 Prepare automatic postings for foreign currency valuation

In this step, you define the numbers of the accounts to which you want the system to post exchange rate
differences automatically:
 For the valuation of open items and
 For the valuation of foreign currency balances
In the functions offered, you can also set the accounts which are posted to when clearing open items with
realized exchange rate differences. You define expense and revenue accounts for this. For more information
on this, see the chapter "Define accounts for exchange rate differences" in the Accounts Receivable and
Accounts Payable IMG.
When evaluating open items, the system posts to a balance sheet adjustment account and an account for
exchange rate differences from the valuation. The postings can either represent a gain or a loss; you
therefore need to define appropriate account numbers.
For the valuation of foreign currency balances, you define expense and revenue accounts for posting
exchange rate differences resulting from the valuation, under a key. Enter the key in the accounts which are
to be valuated. If the exchange rate differences for a group of G/L accounts are posted to the same expense
and revenue accounts, you enter the same key in the accounts to be valuated. The key can be freely defined
by the user.
Refer section 6.2.2.3.1 Define accounts for exchange rate differences” for details.
6.2.2.6.2 Regroup
6.2.2.6.2.1 Define adjustment accounts for GR/IR clearing

Postings are made to the goods receipt/invoice receipt clearing account (GR/IR) whenever goods are
received for which no invoices exist, or when invoices are received for which no goods were delivered yet.
In this step you define numbers of adjustment and target accounts for the GR/IR clearing account which are
required for automatic postings.
Page 74 of 135
Trnasfer postings will be required at the balance sheet key date in order to reflect the invoiced - but not
delivered - and the delivered - but not invoiced - goods deliveries. The program which analyzes the GR/IR
clearing account makes adjustments to it by posting amounts to the adjustment account. The offsetting
entry is made to the account for showing the delivered but not invoiced goods and/or the account reflecting
invoiced but not delivered goods (target account).
No requirement exists for the account settings for the following processes.
Description Process Act determinatn

Invoiced but not yet delivered BNG
Delivered but not yet invoiced GNB
Foreign currency valuation JV9
The following accounts have been assigned :
Description Process Account Adj A/C Trt A/C
Invoiced but not yet delivered BNG 150000 150002 150003
Delivered but not yet invoiced GNB 150000 150002 150003
6.2.2.6.2.2 Define accounts for readjustment

In this step, you define the numbers of the accounts which are posted to automatically for the profitability
segment adjustment and the business area/profit center adjustment.
A subsequent adjustment carries out a subsequent allocation of line items to particular account assignment
objects (business areas, cost center, profit center, etc.). Clearing postings and adjustment postings are
generated automatically for this allocation.
If you do not set up an adjustment account, items will be posted to the original account. If you want to
separate the subsequent debit postings from other postings, you should create your own adjustment
accounts for this purpose and post to them in this step.
The report requires a clearing account for every business area, in order to carry out postings for each
business area which will not affect balances. Adjustment accounts are also required for reconciliation
accounts and tax accounts as well as for all accounts not designed for direct posting. For accounts designed
for direct posting, the creation of a separate adjustment account is optional. Adjustment accounts must not
be marked as tax-relevant, that is, in the master record of the accounts, the "Tax category" field must not be
filled, and the "Posting without tax allowed" field should be marked.
You also maintain accounts for clearing reconciliation postings from Controlling for cross-business area or
cross-functional area clearings. You have to define the clearing account under the GAO transaction key.
GA0 Clearing account
Chart of Process Clearing

Account account
XYZ GA0 191100
GA1 Adjustment accts for reconciliation accts
Chart of Process Account Adjustment

Account account
XYZ GA1 140000 191200
Page 75 of 135
XYZ GA1 140200 191200
XYZ GA1 140201 191200
XYZ GA1 140400 191200
XYZ GA1 140600 191200
XYZ GA1 222000 191300
XYZ GA1 222001 191300
No settings have been done for the following processes:
GA2 Adjustment accounts for tax accounts

GA3 Adjustment accts for cash discount accts
GA4 Adjustment accts for ex.rate diff.accts
GA5 Adjustment accounts for other G/L accts
Chart of Process Account Adjustment

Account account
XYZ GA5 144000 191600
XYZ GA5 144001 191600
XYZ GA5 144002 191600
XYZ GA5 144403 191600
XYZ GA5 144004 191600
XYZ GA5 144005 191600
XYZ GA5 222001 191600
6.2.2.6.2.3 Develop enhancements for balance sheet readjustment
6.2.2.6.3 Document
6.2.2.6.3.1 Define financial statement versions

In this step:
 You define the versions which you need for a balance sheet/P+L (balance sheet and profit and loss
statement).
 You can define versions for a special chart of accounts, for a corporate chart of accounts or without a
special allocation.
 You then determine the balance sheet/P+L items of your version.
Allocate a group of accounts to the items, in each case at the lowest level of your version. You can also
define in which item accounts are displayed by means of terms. This means you can then allocate accounts
or a group of accounts to a particular item depending on the relevant balance.
Following have been defined
Page 76 of 135
Financial stmt vers. Financial statement version name
XYZ1 FINANCIAL STATEMENT VERSION (ROC) FOR XYZ (detail)
XYZ2 FINANCIAL STATEMENT VERSION (ROC) FOR XYZ (detail)
ABC1 FINANCIAL STATEMENT VERSION (ROC) FOR ABC (detail)
ABC2 FINANCIAL STATEMENT VERSION (ROC) FOR ABC (detail)
The Balance Sheet version “ABC1” has been created for XYZ Chart of Accounts. Refer the Appendix A for
the details. (appendix.doc)
Note
It is possible to create other versions of the balance sheet with the same chart of accounts. This version
“ABC1” should not be changed as it provides a reference for the location of various GL accounts in the
Balance Sheet items. Only corrections, if any, can be carried out in this version.
6.2.2.6.3.2 Define accumulated work files for balance audit trail

No Settings done under this heading.
6.2.2.6.4 Report
6.2.2.6.4.1 Taxes on Sales/Purchases Return

6.2.2.6.4.2 Subsequent Tax on Sales/Purchases Debit

6.2.2.6.4.3 Withholding Tax

This functionality is not used in the current system as the SAP international version 3.1H creates the
withholding tax entries at the time of payment. The client requirement is the entries should be created at the
time of liability creation.
However the settings in the current system are documented, so that, they may be used in future
enhancements.
6.2.2.6.4.3.1 Maintain tax codes

The system needs a withholding tax code in order to be able to determine the withholding tax. You specify
the following for each code:
 The portion subject to tax
 The withholding tax minimum amount for Japanese withholding tax reporting
 The tax rate
Percentage rate which is to be used for the withholding tax base amount for calculating
the withholding tax amount. You can also enter the reunification tax in percent in this
field.
 The reduced tax rate in the case of a valid exemption certificate
 The withholding tax formula
Withholding tax codes are defined for each country.
Page 77 of 135
Refer the Appendix B for the details of the tax codes. (appendix.doc)
6.2.2.6.4.3.2 Maintain countries

In this step, you maintain the withholding tax countries. The withholding tax country is needed for printing
the withholding tax form. Since the list of the country IDs to be used prescribed by law deviates from the
list generally available in the system, the withholding tax countries must be redefined.
6.2.2.6.4.3.3 Maintain formulas

In this step, you define the formulas for a special calculation of withholding tax. The formulas are needed
for the 1042 procedure in the USA and for a special calculation type in Japan, for which the withholding
tax is calculated on a scaled basis with the percentage rates dependent on the amount.
No settings done.
6.2.2.6.4.3.4 Maintain recipient types

In this step, you maintain the type of recipient for 1042 reporting in the USA and withholding tax reporting
in Spain. The type of recipient has to do with categorizing the vendor which is needed for printing the
withholding tax form.
No settings done for India.
6.2.2.6.4.3.5 Define recipient codes

In this step, you maintain the recipient codes for the withholding tax return in Spain. You maintain the
recipient code depending on the type of recipient.
6.2.2.6.4.3.6 Define income types

In this step, you maintain the income types for the withholding tax return in Spain. The income type is a
classification of your (foreign) vendors according to income. You need the income type as a specification
for the withholding tax return.
6.2.2.6.4.3.7 Define accounts for withholding tax

In this step, you define the account numbers of your withholding tax accounts. The system posts the tax
amount to these accounts when clearing open items.
Refer Appendix B for details.
Page 78 of 135
6.2.2.6.4.3.8 Withholding Tax Return to Vendor
In the following steps, you define the necessary information for printing the withholding tax return.
No settings have been done under this heading. The existing layout sets may be copied and modified in
case of future enhancements.
6.2.2.6.4.4 Enter company data for German foreign trade regulations

Not relevant.
Page 79 of 135
6.2.2.7 Integration
6.2.2.7.1 Asset Management
6.2.2.7.1.1 Define posting keys for asset postings

In this step, you define posting keys which are used for automatic postings when posting to fixed asset
accounts.
The following standard SAP settings have been used.
Description Process Debit Credit

Asset posting ANL 70 75
G/L account posting from asset posting ANS 40 50
6.2.2.7.1.2 Ordinary depreciation: Assign accounts
Refer Asset Accounting System document for details.
6.2.2.7.1.3 Special depreciation: Assign accounts
6.2.2.7.1.4 Allocate accounts for unplanned depreciation
6.2.2.7.1.5 Valuation differences: Assign accounts
6.2.2.7.1.6 Transferred reserves: Assign accounts
6.2.2.7.1.7 Investment support: Assign accounts
6.2.2.8 Integration
6.2.2.8.1 Asset Management

Refer Asset Accounting document for details.
Page 80 of 135
6.2.2.8.2 Overhead Cost Controlling
Refer Overhead Cost Controlling document for details.
6.2.2.8.3 Materials Management
6.2.2.8.3.1 Define accounts for Materials Management

In this step, you store accounts for Materials Management transactions that lead to automatic postings in
Financial Accounting.
Process
Val.gp.cde Val.class Account

ABC ER01 422760
ABC ER02 422710
ABC ER03 422760
ABC ER04 422710
ABC ER05 422930
ABC ER06 422910
ABC PK01 422830
ABC PK02 422810
ABC RM01 400460
ABC RM02 400450
ABC TG01 400465
ABC TG02 400465
Process

ABC ER01 400421
ABC ER02 400421
ABC ER03 400421
ABC ER04 400421
ABC ER05 400421
ABC ER06 400421
ABC FG01 320000
ABC FG02 320200
ABC FG03 320150
ABC FG04 320000
ABC FG05 320150
ABC FG06 320600
ABC FG07 320600
ABC PK01 400421
ABC PK02 400421
ABC RM01 400421
ABC RM02 400421
Page 81 of 135
ABC RM03 320000
ABC TG01 320400
ABC TG03 320400
ABC TG04 320500
Process BO1
Rebates
Process
Process

ABC ER01 420005
ABC ER02 420005
ABC ER03 420005
ABC ER04 420005
ABC ER05 420005
ABC ER06 420005
ABC FG01 320000
ABC FG02 320200
ABC FG03 320000
ABC FG04 320000
ABC FG05 320150
ABC FG06 320600
ABC FG07 320600
ABC PK01 420005
ABC PK02 420005
ABC RM01 420005
ABC RM02 420005
ABC RM03 400406
ABC TG01 320400
ABC TG02 420005
Process

ABC ER01 220201
ABC ER02 220200
ABC ER03 220201
ABC ER04 220200
ABC ER05 220401
ABC ER06 220400
ABC FG01 220700
ABC FG02 220800
ABC FG03 221504
ABC FG04 220700
ABC FG05 221504
ABC FG06 221560
Page 82 of 135
ABC FG07 221560
ABC PK01 220301
ABC PK02 220300
ABC RM01 220001
ABC RM02 220000
ABC RM03 220000
ABC TG01 221503
ABC TG02 221502
ABC TG03 221503
ABC TG04 221505
Process CVD
CVD paid
Process
Process
Process
Process
Process
Account
150001
Process
Process

ABC ER01 150020
ABC ER03 150020
ABC ER05 150020
ABC PK01 150020
ABC RM01 150020
ABC TG01 150020
Process
Process
Account
400470
Page 83 of 135
Process
Val.gp.cde Account
ABC 420003
Process
Process
Val.gp.cde Acct modif Account

Val.class
ABC BSA ER01 221600
ABC BSA ER02 221600
ABC BSA ER03 221600
ABC BSA ER04 221600
ABC BSA ER05 221600
ABC BSA ER06 221600
ABC BSA FG01 221600
ABC BSA FG02 221600
ABC BSA FG03 221600
ABC BSA FG04 221600
ABC BSA FG05 221600
ABC BSA FG06 221600
ABC BSA FG07 221600
ABC BSA PK01 221600
ABC BSA PK02 221600
ABC BSA RM01 221600
ABC BSA RM02 221600
ABC BSA RM03 221600
ABC BSA TG01 221600
ABC BSA TG02 221600
ABC INV RM02 440650
ABC PRD TG01 400468
ABC VAX ER01 320000
ABC VAX ER02 320000
ABC VAX ER03 320000
ABC VAX ER04 320000
ABC VAX ER05 320000
ABC VAX ER06 320000
ABC VAX FG01 320000
ABC VAX FG02 320200
ABC VAX FG03 320150
ABC VAX FG04 320000
ABC VAX FG05 320150
ABC VAX FG06 320600
ABC VAX FG07 320600
ABC VAX PK01 320000
ABC VAX PK02 320000
Page 84 of 135
ABC VAX RM01 320000
ABC VAX RM02 320000
ABC VAX RM03 320000
ABC VAX TG01 320400
ABC VAX TG02 400402
ABC VAX TG04 320500
ABC VBO ER01 422950
ABC VBO ER02 422950
ABC VBO ER03 422950
ABC VBO ER04 422950
ABC VBO ER05 422950
ABC VBO ER06 422950
ABC VBO FG01 320000
ABC VBO FG02 320200
ABC VBO FG04 320000
ABC VBO FG05 320150
ABC VBO FG06 320600
ABC VBO FG07 320600
ABC VBO PK01 422950
ABC VBO PK02 422950
ABC VBO RM01 422950
ABC VBO RM02 422950
ABC VBO RM03 400406
ABC VBO TG01 320400
ABC VBO TG02 422950
ABC VBO TG04 320500
ABC VBR ER01 422750
ABC VBR ER02 422700
ABC VBR ER03 422750
ABC VBR ER04 422700
ABC VBR ER05 422920
ABC VBR ER06 422900
ABC VBR FG01 400410
ABC VBR FG04 320000
ABC VBR FG05 320150
ABC VBR FG06 320600
ABC VBR FG07 320600
ABC VBR PK01 422820
ABC VBR PK02 422800
ABC VBR RM01 400401
ABC VBR RM02 400400
ABC VBR RM03 400406
ABC VBR TG01 400403
ABC VBR TG02 400402
ABC VBR TG03 400412
ABC VNG ER01 422750
ABC VNG ER02 422700
ABC VNG ER03 422750
ABC VNG ER04 422700
ABC VNG ER05 422920
ABC VNG ER06 422900
ABC VNG FG01 400410
Page 85 of 135
ABC VNG PK01 422820
ABC VNG PK02 422800
ABC VNG RM01 400401
ABC VNG RM02 400400
ABC VNG TG01 400403
ABC VNG TG02 400402
ABC VQP ER01 440650
ABC VQP ER02 440650
ABC VQP ER03 440650
ABC VQP ER04 440650
ABC VQP ER06 440650
ABC VQP FG01 440650
ABC VQP FG02 440650
ABC VQP FG04 440650
ABC VQP FG05 440650
ABC VQP FG06 440650
ABC VQP FG07 440650
ABC VQP PK01 440650
ABC VQP PK02 440650
ABC VQP RM01 440650
ABC VQP RM02 440650
ABC VQP RM03 440650
ABC VQP TG01 440650
ABC VQP TG02 440650
ABC ZOB FG01 320000
ABC ZOF FG01 320000
ABC ZOF FG02 320200
ABC ZOF FG03 320150
ABC ZOF FG04 320000
ABC ZOF FG05 320150
ABC ZOF FG06 320600
ABC ZOF FG07 320600
ABC ZOF RM02 320000
ABC ZOF TG01 320400
ABC ZOF TG04 320500
Process
Debit 81
Credit 91
Process
Val.gp.cde Val.class Debit Credit

ABC ER01 453000 300401
ABC ER02 453000 300401
ABC ER03 453000 300401
ABC ER04 453000 300401
ABC ER05 453000 300401
Page 86 of 135
ABC ER06 453000 300401
ABC FG01 453000 300401
ABC FG02 453000 300401
ABC PK01 453000 300401
ABC PK02 453000 300401
ABC RM01 453000 300401
ABC RM02 453000 300401
ABC TG01 453000 300401
ABC TG02 453000 300401
Process
Account
400460
Process
Account
150005
Process
Process

ABC ER01 422760
ABC ER02 422710
ABC ER03 422760
ABC ER04 422710
ABC ER05 422930
ABC ER06 422910
ABC PK01 422830
ABC PK02 422810
ABC RM01 400460
ABC RM02 400450
ABC RM03 400450
ABC TG01 400465
ABC TG02 400468
Process
Process
Process
Page 87 of 135
RUE
Prov.
misc.del.c
osts
Process

ABC RM01 453000
Process
Process
Val.gp.cde Account
ABC 150000
Process
6.2.2.8.3.2 Carry out document summarization for Materials

Management
No settings done.
6.2.2.8.4 Personnel Administration

No settings done.
6.2.2.8.5 Sales and Distribution

Refer Sales and distribution customisation documentation
6.2.2.8.6 Local General Ledgers
6.2.2.8.6.1 Carry out link to General Ledger

SAP settings retained.
6.2.2.8.7 Generate list for automatic postings
6.2.2.8.8 Generate error list for automatic postings
Page 88 of 135
6.2.3 Data Transfer
No settings done.
6.2.4 Information System
6.2.4.1 Define report selection

SAP standard report tree has been used.
6.2.4.2 Define/import ABAP/4 queries
6.2.4.3 G/L Information System

SAP standard settings used under this heading.
6.2.4.3.1 Form
6.2.4.3.2 Report
6.2.4.3.3 Constants
No settings done.
6.2.4.3.3.1 Maintain and valuate constants

No settings done.
6.2.4.3.4 Maintain global variables

No settings done.
6.2.4.3.5 Translate reports

No settings done.
Page 89 of 135
6.2.5 Bank-Related Accounting
6.2.5.1 Bank Accounts
6.2.5.1.1 Copy bank directory

Not relevant to the current system.
6.2.5.1.2 Define house banks

Each house bank of a company code is represented by a bank ID in the SAP system, every account at a
house bank by an account ID.
In the SAP system, you use the bank ID and the account ID to specify bank details. These specifications are
used, for example, for automatic payment transactions to determine the bank details for payment.
Company code XYZ
House bank Ctry Bank key

ANZ01 IN G4
ANZFC IN G11
ANZPC IN G12
CBI01 IN G1
CBI02 IN G5
CBI03 IN G6
CBI04 IN G7
CBIFC IN G13
CBIPC IN G14
ICICI IN G10
IDBI1 IN G9
SBI01 IN G2
SBI02 IN G8
SBIPC IN G15
SBT01 IN G3
SBTPC IN G16
Page 90 of 135
House Acct ID Bank Control Curr. G/L acct Discount
bank acct key acct
ANZ01 ANZ01 4 1 INR 224040 452300

ANZFC ANZFC 11 INR 122160 452300
ANZPC ANZPC 12 INR 122020 452300
CBI01 CBI01 1 1 INR 224000 452300
CBI02 CBI02 5 INR 224050 452300
CBI03 CBI03 6 1 INR 224060 452300
CBI04 CBI04 7 1 INR 224070 452300
CBIFC CBIFC 13 INR 122150 452300
CBIPC CBIPC 14 INR 122000 452300
ICICI ICICI 10 1 INR 224110 452300
IDBI1 IDBI1 9 1 INR 224100 452300
SBI01 SBI01 2 1 INR 224010 452300
SBI02 SBI02 8 1 INR 224080 452300
SBIPC SBIPC 15 INR 122010 452300
SBT01 SBT01 3 1 INR 224030 452300
SBTPC SBTPC 16 INR 122100 452300
Company code ABC
House bank Ctry Bank key

ANZ01 IN 4
ANZFC IN 11
ANZPC IN 12
CBI01 IN 1
CBI02 IN 5
CBI03 IN 6
CBI04 IN 7
CBIFC IN 13
CBIPC IN 14
ICICI IN 10
IDBI1 IN 9
SBI01 IN 2
SBI02 IN 8
SBIPC IN 15
SBT01 IN 3
SBTPC IN 16
House Acct ID Bank Control Curr. G/L Discount

bank acct key account acct
Page 91 of 135
ANZ01 ANZ01 4 1 INR 224040 452300
ANZFC ANZFC 11 USD 122160 452300
ANZPC ANZPC 12 INR 122020 452300
CBI01 CBI01 1 1 INR 224000 452300
CBI02 CBI02 5 1 INR 224050 452300
CBI03 CBI03 6 1 INR 224060 452300
CBI04 CBI04 7 1 INR 224070 452300
CBIFC CBIFC 13 USD 122150 452300
CBIPC CBIPC 14 INR 122000 452300
ICICI ICICI 10 1 INR 224110 452300
IDBI1 IDBI1 9 1 INR 224100 452300
SBI01 SBI01 2 1 INR 224010 452300
SBI02 SBI02 8 1 INR 224080 452300
SBIPC SBIPC 15 INR 122010 452300
SBT01 SBT01 3 1 INR 224030 452300
SBTPC SBTPC 16 INR 122100 452300
6.2.5.1.3 Check post office bank branch numbers

6.2.5.1.4 Enter names of building societies

6.2.5.1.5 Define lockbox accounts at house banks

6.2.5.1.6 Make functional enhancements for bank account number

No settings done.
6.2.5.1.7 Develop enhancements for bank data
No settings done.
6.2.5.1.8 Changes Display
6.2.5.1.8.1 Define field groups for bank master data

No settings done.
6.2.5.1.8.2 Group bank master record fields

After you defined the field groups here, you allocate the required master record fields to the field groups.
You specify the complete identification code of the fields from the Data Dictionary as well as a field
description.
Page 92 of 135
No settings done.
6.2.5.1.9 Delete bank master data

No settings done.
6.2.5.2 Business Transactions

No settings done.
6.2.5.3 Data Transfer

No settings done.
6.2.5.3.1 Copy bank directory
6.2.5.3.2 Develop enhancements for bank directory
6.2.5.3.3 Delete bank master data
Page 93 of 135
6.3 Accounts Receivable and Accounts Payable
6.3.1 Customer Accounts
6.3.1.1 Master Records

Refer the SD documentation for the details regarding Customer master records.
6.3.1.2 Line Items

All the details under this heading have been documented under GL accounts. Please refer the relevant
section for further details.
6.3.1.2.1 Customer Line Item Display

Standard settings retained



Account type D- Customers

GSBER Business area
6.3.1.2.1.5 Define sort variants





Page 94 of 135

6.3.1.2.1.12 Define master records info

6.3.1.2.1.13 Maintain work list

No settings have been done. Work lists can be created using accounting menu.
6.3.1.2.1.14 Change message control for displaying line items

No settings done.

All the details under this heading have been documented under GL accounts. Please refer the relevant
section for further details.





Page 95 of 135
6.3.1.2.3 Correspondence
6.3.1.2.3.1 Carry out or check correspondence settings

Refer the relevant sections for details.
6.3.1.2.3.2 Define period types for customers

6.3.1.2.3.3 Define report variants for customer account statements

6.3.1.2.3.4 Define report variants for customer "Customer Statement"

6.3.1.2.3.5 Define report variants for individual customer letters

No settings done.
6.3.1.2.3.6 Specify selection criteria for customer form letters

6.3.1.3 Balances
Page 96 of 135
6.3.2 Vendor Accounts
6.3.2.1 Master Records

Refer the MM documentation for the details regarding MM Vendor master records.
Account group 106
Description Vendor for FI - XYZ

Number range 06
One-time account -
Field status
Suppress Req.entry Opt.entry Display
General data
Address
Name 1 X
Form of address X
Search term X
Name 2 X
Name 3, name 4 X
Postal code, city X
Street X
Location X
Region X
P.O. box
P.O. box postal code X
Country X
P.O. Box city X
Communication
Telex, fax, tel. X
Teletex X
Telebox X
Data line X
Language X
Control
Customer X
Corporate group X
Tax code 1 X
Sales equalization tax X
International location number X
Page 97 of 135
Fiscal address X
Industry X
VAT registration number X
Train station X
Existing quality assur.systems X
Authorization X
Trading partner X
Reference account group (OTA) X
Tax jurisdiction code X
Tax code 2 X
Taxes on sales/purchases X
Sole proprietor X
Person subject to withhold.tax X
Carrier details X
Credit information X
Transportation zone X
Payment transactions
Bank details X
Alternative payee account X
Alternative payee in document X
DME details X
POR subscriber number X
Company code data
Account management
Reconciliation account X
Planning group X
Previous account number X
Sort key X
Head office X
Authorization X
Subsidy (preference) ID X
Minority indicator X
Withholding tax code X
Wthld.tax exempt.no.limited to X
Interest calculation X
Withh.tax cat., exempt.reason X
Withholding tax country X
Personnel number X
Release approval group X
Terms of payment X
Double invoice validation X
Payment block X
Payment methods X
Alternative payee account X
Clearing with customer X
Bill of exchange limit X
Cashed checks duration X
Page 98 of 135
Invoice verification tol.group X
Tolerance group X
House bank X
Payment advice via EDI X
Single pmnt, grp key, PM supl. X
Correspondence
Acctng clerk's fax/Internet X
Dunning data X
Local processing X
Account at vendor X
Accounting clerks X
Users at vendor X
Account memo
Purchasing data
Purchase order currency X
Terms of payment X
Incoterms X
Minimum order value X
Name, tel. (salesperson) X
ABC indicator X
Goods-receipt-based inv.verif. X
Order acknwl. reqmt. X
Autom.generated purchase order X
Vendor schema group X
Mode of transport X
Office of exit X
Control pricing date X
Order-item-based settlement X
Purchasing group X
Planned deliv. time X
Price marking X
Rack-jobbing X
PO entry: vendor X
Subsequent settlement X
Subsequent settlement index X
Bus.vol.comparison/agrmnt nec. X
Partner usage
Business partner assignment X
Additional purchasing data

Plant X
VSR - relevance X
Plant - relevance X
Page 99 of 135
6.3.2.2 Line Items
6.3.2.2.1 Vendor Line Item Display



Account type D- Customers

GSBER Business area
6.3.2.2.1.5 Define sort variants







Page 100 of 135

6.3.2.2.1.12 Define master records info

Maintained through the transaction menu

Line layout K2 LINE LAYOUT WITH REF DOC(BILL NO)
Reference doc.
Document number
Posting key
Business area
Days in arrears




6.3.2.2.3 Correspondence
6.3.2.2.3.2 Define report variants for vendor account statements

No settings done.
Page 101 of 135

6.3.2.2.3.3 Define report variants for vendor "Customer Statement"
No settings done.
6.3.2.2.3.4 Define report variants for individual vendor letters

No settings done.
6.3.2.2.3.5 Specify selection criteria for vendor form letters

6.3.2.3 Balances
6.3.3 Business Transactions
6.3.3.1 Incoming Invoices/Credit Memos

Settings done under the relevant sections.

Settings done under the relevant sections.
6.3.3.1.3 Maintain terms of payment

In the step Maintain terms of payment, you can define rules with which the system can determine the
required terms of payment automatically. The rules are stored under a four-character key. You assign the
terms of payment specified to the vendors in the master record via the key. The key and the terms
determined with it are proposed when entering a document to the vendor account.
Pmnt Own explanatn Days Cash Days Cash Days Acct Hold-
terms from disc % from disc from type back
baseline rate baseline % rate baseline
date for 1 date for 2 date for
payment payment payment
1 2 3
ZTAG1 ZPRZ1 ZTAG2 ZPRZ ZTAG3

2
CAD Cash against Documents 0 0 0 0 0 D

D001 At Sight 0 0 0 0 0 D
D002 30 days from B/L Date 30 0 0 0 0 D
D003 45 days from B/L Date 45 0 0 0 0 D
D004 0 0 0 0 0 D X
D005 60 DAYS from B/L Date 60 0 0 0 0 D
D006 85 Days from B/L Date 85 0 0 0 0 D
Page 102 of 135

D011 10 % before despatch of Material( B/L 0 0 0 0 0D
Date)
D012 Balance 90% on receipt of material 0 0 0 0 0 D
D013 0 0 0 0 0 D X
D014 5 2 30 0 0 D
D015 0 3 0 0 0 D
D017 30 2 60 1 85 D
D018 30 3 90 1 120 D
D019 Within 85 days Due net 85 0 0 0 0 D
D020 15 % before despatch of Material( B/L 0 0 0 0 0 D
Date)
D021 Balance 85% on receipt of material 0 0 0 0 0 D
D022 0 0 0 0 0 D X
D025 0 0 0 0 0 D
D026 0 0 0 0 0 D
D027 0 0 0 0 0 D
D028 0 3 30 2 0 D
D030 100% ADVANCE PAYMENT BEFORE 0 0 0 0 0 D
DESPTACH
F001 A/P 90% in 7 days, 10% in 45 days 0 0 0 0 0 K X
F002 FI A/P 7 days 7 0 0 0 0 K
F003 FI A/P 45 days 45 0 0 0 0 K
L002 30 days from L/R Date 30 0 0 0 0 D
L003 45 days from L/R Date 45 0 0 0 0 D
L006 85 Days from L/R Date 85 0 0 0 0 D
L007 90 Days from L/R Date 90 0 0 0 0 D
MM01 90% After 30 days & 10% after 45 days 0 0 0 0 0 K
MM21 0 0 0 0 0
MM22 100% After 10 days Due net 10 0 0 0 0 K
MM25 100% After 30 days Due net 30 0 0 0 0
MM28 10% advance with PO & balance agnst 0 0 0 0 0 K
desp documents
MM29 20% advance with PO & balance agnst 0 0 0 0 0K
desp documents
MM30 100% against despatch documents thru 0 0 0 0 0K
Bank
MM31 100% against despatch documents 0 0 0 0 0K
MM51 LC 95% sight & 5% after 180 days from 0 0 0 0 0K
B/L date
B/L date
Page 103 of 135

B/L date
B/L date
B/L date
MM56 LC 100% after 180 days from B/L dt libor 0 0 0 0 0K
interest
MM59 LC 100% after 90 days from B/L dt libor 0 0 0 0 0K
interest
MM71 Cash against despatch documents (CAD) 0 0 0 0 0 K
MM72 100% advance alongwith purchase order 0 0 0 0 0 K
MM73 LC 100% Sight 0 0 0 0 0 K
MM74 100% against Proforma Invoice 0 0 0 0 0 K
MM75 100% within 7days of despatch 0 0 0 0 0 K
MM91 Given above 0 0 0 0 0 K
6.3.3.1.4 Define terms of payment for holdback/retainage
In this step you can determine whether an invoice amount is to be divided into partial amounts with
different due dates.
Pmnt terms Holdback Percent Pmnt term
30 1 90 20
30 2 10 26
31 1 90 20
31 2 10 27
32 1 90 20
32 2 10 28
33 1 90 20
33 2 10 29
34 1 90 24
34 2 10 26
35 1 90 24
35 2 10 27
36 1 90 24
36 2 10 28
37 1 90 24
37 2 10 29
39 1 90 26
39 2 10 28
40 1 90 26
40 2 10 27
41 1 90 26
41 2 10 29
D004 1 20 D001
D004 2 50 D002
Page 104 of 135

D004 3 30 D003
D013 1 10 D011
D013 2 90 D012
D022 1 15 D020
D022 2 85 D021
F001 1 90 F002
F001 2 10 F003
6.3.3.1.5 Define SCB indicator for foreign trade regulations

Not relevnat.
6.3.3.1.6 Define cash discount base for incoming invoices

In this step you determine whether the tax amount is to be taken into consideration in the base amount for
calculating the cash discount amount. You make your specifications per company code.
Cocode Discount base net
XYZ X
ABC X
6.3.3.1.7 Invoice/Credit Memo Fast Entry
6.3.3.1.7.1 Define posting keys for fast entry

6.3.3.1.7.2 Define screen templates for G/L account items

SAP standard settings used plus some more templates created
0001 Travelling expenses

0002 Postage & telephone
0003 Printing & Stationery
0004 Miscellaneous Expenses
0005 Factory expenses
SAP01 Standard one line
SAP02 Standard two lines
6.3.3.1.8 Define account for net procedure

No settings done.
6.3.3.1.9 Carry out or check settings for withholding tax
6.3.3.1.9.1 Maintain tax codes
Page 105 of 135

W.tax Description Taxable Rate Post Red.
code portion with rate
paymt
I0 W tax 0%- DUMMY FOR NON TDS CASES 0 0 0

I1 W tax 194C 2.2% Down Payment Contractors 100 2.2 X 0.55
I2 W Tax 194J 5.5% - Down payment services 100 5.5 X 0
I3 W TAX 194J 1.1% - DOWN PMTS AD CONTRACTS 100 1.1 X 0
I4 W TAX 194C 1.1% - DOWN PMT - SUBCONTRACT 100 1.1 X 0
I5 DWN PMT-5.5 %PROF/TECHNICAL SERVICES 100 5.5 X 0
I6 DOWN PAYMENT-22 %RENT - COMPANIES (194I) 100 22 X 0
I7 DWN PMT-RENT 16.5%OTHER THAN COS(194I) 100 16.5 X 0
I8 DOWN PAYMENT-22%INTEREST COMPANIES(194A) 100 22 X 0
I9 DOWN PMT-INTEREST 11 %OTHER THAN COS 100 11 X 0
J1 W tax 194C 2.2% Down Payment Contractors 100 0.55 X 0
W1 W tax 194C 2.2% -Payments to contractors 100 2.2 0.55
W2 W Tax 194J 5.5% - Payments for services 100 5.5 0
W3 W TAX 194J 1.1% - ADVERTISING CONTRACTS 100 1.1 0
W4 W TAX 194C 1.1%-PAYMENTS FOR SUBCONTRACT 100 1.1 0
W5 W TAX 5.5%PROF/TECHNICAL SERVICES 100 5.5 0
W6 W TAX ON RENT 22%- COMPANIES 100 22 0
W7 W TAX ON RENT 16.5%- OTHER THAN COS 100 16.5 0
W8 W TAX ON INTEREST 22%- COMPANIES 100 22 0
W9 W TAX ON INTEREST 11%- OTHER THAN COS 100 11 0
X1 W tax 194C 2.2% -Payments to contractors 100 0.55 0
6.3.3.1.9.2 Maintain countries
6.3.3.1.9.3 Maintain formulas
6.3.3.1.9.4 Maintain types of recipient
6.3.3.1.9.5 Define recipient codes
6.3.3.1.9.6 Define income types
6.3.3.1.9.7 Define accounts for withholding tax

Chart of accounts XYZ XYZ Group Chart of Accounts
Process QST Withholding tax
Tax code Account

Page 106 of 135
I1 144001
I2 144002
I3 144002
I4 144001
I5 144002
I6 144003
I7 144003
I8 144004
I9 144004
K1 144001
K2 144001
K3 144001
K4 144001
W1 144001
W2 144002
W3 144002
W4 144001
W5 144002
W6 144003
W7 144003
W8 144004
W9 144004
Y1 144001
Y2 144001
Y3 144001
Y4 144001
6.3.3.1.10 EDI
No settings done.
6.3.3.2 Release for Payment

No settings done.
6.3.3.3 Outgoing Payments
6.3.3.3.1 Outgoing Payments Global Settings
6.3.3.3.1.1 Carry out or check document settings

6.3.3.3.1.2 Define accounts for cash discount taken

Process SKE Cash discount received
Account
440106
Page 107 of 135

6.3.3.3.1.3 Define accounts for lost cash discount
6.3.3.3.1.4 Define accounts for overpayments/underpayments

Process ZDI Payment differences by reason
Account
461000
6.3.3.3.1.5 Define accounts for exchange rate differences
G/L acct CurrBal. Real.ex. Real.ex. Transl. Transl. Val. Val. Bal.sheet Bal.sheet
sheet losses gains loss 1 gain 1 loss 1 gain 1 adj.gain adj.loss
adj.
120500 USD 120500 453000 300401 499511 499511
120501 120501 453000 300401 499512 499512
120502 120502 453000 300401 499513 499513
120505 120505 453000 300401 499516 499516
120800 120800 453000 300401 499501 499501
120801 120801 453000 300401 499502 499502
120802 120802 453000 300401 499503 499503
120803 120803 453000 300401 499504 499504
120804 120804 453000 300401 499505 499505
120805 120805 453000 300401 499506 499506
120806 120806 453000 300401 499507 499507
120807 120807 453000 300401 499508 499508
121400 121400 453000 300401 499517 499517
121850 120800 453000 300401 499509 499509
140000 140250 453000 300401 453000 300401
140201 140250 453000 300401 453000 300401
140400 140250 453000 300401 453000 300401
140500 140250 453000 300401 453000 300401
140600 140250 453000 300401 453000 300401
222000 222090 453000 300401 453000 300401
222001 222090 453000 300401 453000 300401
6.3.3.3.1.6 Define accounts for bank charges (vendors)

In this step, you define the account numbers of your bank charges accounts. The system posts the charges
amount you specify for a bank item when settling payment to these accounts.
Process BSP Bank charges
Account
452300
Page 108 of 135

6.3.3.3.1.7 Define posting keys for clearing
6.3.3.3.1.8 Enable translation posting

Not relevant.
6.3.3.3.1.9 Carry out or check settings for withholding tax

6.3.3.3.1.10 Payment Block Reasons
6.3.3.3.1.10.1 Define payment block reasons

Using payment blocking reasons, you can differentiate why invoices are to be blocked for payment.
For each block indicator, you must decide whether:
 Changes are allowed in the payment proposal. (If the indicator is not set, the reason for blocking
cannot be set nor removed when a payment proposal is processed)
 Documents defined with the block key are also not to be cleared during manual payment entry.
Block Ind Explanation Change in Manual Not

Payment Prop Payments changeable
Block
Free for payment
* Skip account
A Blocked for payment Yes Yes
R Invoice verification
6.3.3.3.1.10.2 Define default values for payment block

No settings done.
6.3.3.3.2 Manual Outgoing Payments
6.3.3.3.2.1 Define tolerance groups (vendors)

In this step, you specify the tolerances for vendors. These tolerances are used for dealing
with differences in payment and residual items which can occur during payment
settlement. Specify the tolerances under one or more tolerance groups. Allocate a
tolerance group to each vendor via the master record. For each tolerance group, specify
the following:
 Tolerances up to which differences in payment are posted automatically to expense or revenue
accounts when clearing open items
 The handling of the terms of payment for residual items, if they are to be posted during clearing.
Cocode Tol. Rev. Cash Payment Only grant

group disc.terms term from partial cash
displayed invoice discount
Page 109 of 135

XYZ 1000 0* X X
ABC 1000 0* X X
6.3.3.3.2.2 Overpayment/Underpayment
No settings done.
6.3.3.3.2.3 Prepare cross-company code manual payments

Not relevant.
6.3.3.3.2.4 Carry out or check settings for processing open items

Settings done documented relevant sections.
6.3.3.3.2.5 Check payment block reason

Refer relevant section for details.
6.3.3.3.3 Automatic Outgoing Payments
6.3.3.3.3.1 Payment Method/Bank Selection
6.3.3.3.3.1.1 Define payment forms

In this step you can define payment forms.
Not relevant.
6.3.3.3.3.1.2 Configure payment program

In this activity you make the specifications which control the payment program. You determine:
 Which company codes participate in payment transactions and which company codes carry out
payments.
 Which payment methods can be used . The payment method specifies the procedure (for example
check, bank transfer or bill of exchange) to be used when payments are made. For the payment
method, you make specifications which are either dependent on the country or on the paying
company code.
 Whether you want to use payment method supplements. You can group payments using payment
method supplements (mailstop codes) and therefore, for example, control the sending of checks.
 From which bank accounts payment is made. The payment program can select the bank account
according to defined rules or you can specify from which account a payment is to be made.
 With which form payment is made. The forms are to be defined in the system using SAPscript. For
every paying company code, you specify, per payment method, which form is used.
Country Payment Methods

ID DESCRIPTION
C Cheques
L Demand Draft
W Bill of Exchange
Page 110 of 135

Company code payment methods
Paying company code XYZ XYZ INDUSTRIES LTD
Minimum amount for incoming payment 100.00 INR

Minimum amount for outgoing payment 100.00 INR
No exchange rate differences
Form for the payment advice F110_D_AVIS
EDI accompanying sheet form
Latest due date in 90 Days

Bill on demand for due date up until 10 Days
Earliest due date in 10 Days
One bill of exchange per due date interval Yes
Paying company code ABC ABC INDIA LIMITED
PAYING COMPANY CODE DETAILS

Minimum amount for incoming payment 100,00 INR
Minimum amount for outgoing payment 100,00 INR
No exchange rate differences No
Form for the payment advice F110_D_AVIS
EDI accompanying sheet form
Bill on demand for due date up until 10 Days
Earliest due date in 10 Days
One bill of exchange per due date interval Yes
Payment Methods in company code

C-Check Payment with Check Mgmt
Paying co. code XYZ

Pymt method C
Pmnt adv.if form is full
Line items per form 99
Minimum amount 100
Maximum amount 1000000000
Currency
Single payment for marked item X
Allowed for pyts to cust/vendors abroad? X
Foreign currency allowed X
Client 300
Paying co. code XYZ
Pymt method C
Next form
Days until due date 0
Extra forms if form is full
Bill protest ID
Correspondence
Page 111 of 135

Line items
Payment per due day X
Paying co. code ABC

Pymt method C
Pmnt adv.if form is full
Line items per form 99
Minimum amount 0
Maximum amount 5000000
Currency
Single payment for marked item X
Allowed for pyts to cust/vendors abroad? X
Foreign currency allowed X
Client 300
Paying co. code ABC
Pymt method C
Next form
Days until due date 0
Extra forms if form is full
Bill protest ID
Correspondence
Line items
Payment per due day X
Bank Selection Ranking Order

Paying company code XYZ XYZ INDUSTRIES LTD
Pymt Curr. Rank. House House Acct for

meth. order bk bank bill/exc
for h.
b/ex.
C INR 1 ANZ01 ANZ01 ANZ01
C INR 2 CBI01 CBI01 CBI01
C INR 3 CBI02
C INR 4 CBI03
C INR 5 CBI04
C INR 6 SBI01
C INR 7 SBI02
C INR 8 SBT01
C INR 9 ICICI
C INR 10 IDBI1
Amounts
Page 112 of 135

House bk Acct ID Days Curr. Outgoing payment Incoming payment
ANZ01 ANZ01 999 INR 1,000,000,000.00 70,000,000,000.00
CBI01 CBI01 999 INR 1,000,000,000.00 70,000,000,000.00
CBI02 CBI02 999 INR 1,000,000,000.00 70,000,000,000.00
CBI03 CBI03 999 INR 1,000,000,000.00 90,000,000,000.00
CBI04 CBI04 999 INR 1,000,000,000.00 70,000,000,000.00
ICICI ICICI 999 INR 1,000,000,000.00 80,000,000,000.00
IDBI1 IDBI1 999 INR 1,000,000,000.00 70,000,000,000.00
SBI01 SBI01 999 INR 1,000,000,000.00 97,000,000,000.00
SBI02 SBI02 999 INR 1,000,000,000.00 70,000,000,000.00
SBT01 SBT01 999 INR 1,000,000,000.00 88,000,000,000.00
Accounts
House bk Pymt meth. Curr. Acct ID Bank Clear. Charge BusA

subacct acct type
ANZ01 C INR ANZ01 224041 0
CBI01 C INR CBI01 224001 0
CBI02 C INR CBI02 224051 0
CBI03 C INR CBI03 224061 0
CBI04 C INR CBI04 224071 0
ICICI C INR ICICI 224111 0
IDBI1 C INR IDBI1 224101 0
SBI01 C INR SBI01 224011 0
SBI02 C INR SBI02 224081 0
SBT01 C INR SBT01 224031 0
Paying company code ABC ABC INDIA LIMITED
Payment Currency Rank Order House Bank A/C for B/E

Method
C INR 1 ANZ01 ANZ01
C INR 2 CBI01
C INR 3 CBI02
C INR 4 CBI03
C INR 5 CBI04
C INR 6 SBI01
C INR 7 SBI02
C INR 8 SBT01
C INR 9 ICICI
C INR 10 IDBI1
Amounts
House bk Acct ID Days Curr. Outgoing payment Incoming payment

ANZ01 ANZ01 999 INR 1,000,000,000.00 70,000,000,000.00
CBI01 CBI01 999 INR 1,000,000,000.00 70,000,000,000.00
CBI02 CBI02 999 INR 1,000,000,000.00 70,000,000,000.00
CBI03 CBI03 999 INR 1,000,000,000.00 90,000,000,000.00
Page 113 of 135

CBI04 CBI04 999 INR 1,000,000,000.00 70,000,000,000.00
ICICI ICICI 999 INR 1,000,000,000.00 80,000,000,000.00
IDBI1 IDBI1 999 INR 1,000,000,000.00 70,000,000,000.00
SBI01 SBI01 999 INR 1,000,000,000.00 97,000,000,000.00
SBI02 SBI02 999 INR 1,000,000,000.00 70,000,000,000.00
SBT01 SBT01 999 INR 1,000,000,000.00 88,000,000,000.00
Accounts
House Pymt Curr. Acct ID Bank Clear. Charge BusA

bk meth. subacct acct type
ANZ01 C INR ANZ01 224041 0
CBI01 C INR CBI01 224001 0
CBI02 C INR CBI02 224051 0
CBI03 C INR CBI03 224061 0
CBI04 C INR CBI04 224071 0
ICICI C INR ICICI 224111 0
IDBI1 C INR IDBI1 224101 0
SBI01 C INR SBI01 224011 0
SBI02 C INR SBI02 224081 0
SBT01 C INR SBT01 224031 0
6.3.3.3.3.1.3 Define payment grouping

In this step you define grouping keys with which customer/vendor's open items are settled together. For
each key, you specify a maximum of three fields from the database tables BSIK (vendors) or BSID
(customers). Items whose contents correspond to the specified fields are settled together. You determine the
grouping key used to group together the open items of a customer/vendor by entering this grouping key into
the customer/vendor's master record.
The field ZUONR Allocation is used for grouping.
6.3.3.3.3.2 Payment Proposal Processing

6.3.3.3.3.3 Automatic Posting

6.3.3.3.3.4 Payment Media
6.3.3.3.3.4.1 Sort Variants

Page 114 of 135

6.3.3.3.3.4.2 Check Management?????????XYZ
House Bank ANZ01 Account ID ANZ01
Lot Short Text Fr Check No To Check No Next Lot Status
1 ANZ01 133262 133275
2 ANZ01 133376 133425
House Bank CBI01 Account ID CBI01

1 GMF 058349 058400
House Bank CBI02 Account ID CBI02

1 CBI02 068112 068200
2 CBI02 068201 068300
3 CBI02 068301 068400
House Bank SBI01 Account ID SBI01
1 SBI01 187276 187300

2 SBI01 187401 187500
House Bank SBI02 Account ID SBI02

1 SBI02 725816 726000
6.3.3.3.3.4.3 Data Medium Exchange

Not relevant.
6.3.3.3.3.4.4 EDI Payment Orders and Debit Memos

Not relevant.
6.3.3.3.3.5 Payment Run Display

6.3.3.4 Outgoing Invoices/Credit Memos

Settings documented under the relevant sections.

No settings done.
6.3.3.4.3 Maintain terms of payment

6.3.3.4.4 Define terms of payment for holdback/retainage

Page 115 of 135

6.3.3.4.5 Define cash discount base for outgoing invoices
6.3.3.4.6 Define tax accounts for outgoing invoices

The settings have been documented under the relevant sections.
6.3.3.4.7 Outgoing Credit Memo Correspondence

6.3.3.4.7.2 Define report variants for document extracts

No settings done.
6.3.3.5 Incoming Payments
6.3.3.5.1 Payment Receipt Global Settings
6.3.3.5.1.1 Carry out or check document settings

6.3.3.5.1.2 Define accounts for cash discount granted

Process SKT Cash discount expenses
Account
440106
6.3.3.5.1.3 Define accounts for overpayments/underpayments

No settings done.
6.3.3.5.1.4 Define accounts for exchange rate differences

6.3.3.5.1.5 Define accounts for bank charges (customers)

Process BSP Bank charges
Account
452300
For XYZ XYZ Chart of Accounts and for process BSP, account 452300 has been set up.
6.3.3.5.1.6 Define posting keys for clearing

Page 116 of 135

6.3.3.5.1.7 Enable translation posting
No settings done.
6.3.3.5.1.8 Overpayment/Underpayment
6.3.3.5.1.9 Payment Block Reasons

6.3.3.5.1.10 Payment Advice Notes (Incoming)

6.3.3.5.2 Manual Payment Receipt
6.3.3.5.2.1 Define tolerance groups for employees?????

Refer relevant sections for details.
6.3.3.5.2.2 Allocate tolerance groups to users (employees)

6.3.3.5.2.3 Define Tolerances (Customers)

No settings defined.
6.3.3.5.2.4 Prepare cross-company code manual payments

Not relevant.
6.3.3.5.2.5 Carry out or check settings for processing open items

6.3.3.5.2.6 Outgoing Payment Notices
6.3.3.5.2.6.1 Carry out or check correspondence settings??/

6.3.3.5.2.6.2 Control the automatically generated payment notices

6.3.3.5.2.6.3 Define report variants for payment notices

6.3.3.5.2.6.4 Create receipt lot

Page 117 of 135

6.3.3.5.2.6.5 Allocate receipt lots to number ranges
6.3.3.5.2.6.6 Define stamp tax

6.3.3.5.3 Automatic Payment Receipt

No settings done.
6.3.3.5.4 Electronic Payment Receipt

6.3.3.6 Dunning
6.3.3.6.1 Define dunning forms

To be maintained by the client staff.
6.3.3.6.2 Set up dunning program

In this step, you make the specifications for controlling the dunning program. You determine
 Which company codes are to be taken into consideration for dunning. You specify these company
codes when configuring the dunning program.
 With which dunning procedure you want to dun. The dunning procedure is independent of company
code and determines the dunning interval, the grace periods for the due date determination and the
number of dunning levels. You can also set the dunning level as of which all due items from an
account are listed for creating a dunning notice.
 Which dunning charges are to be levied. For this, you can either specify a fixed charge or the system
calculates the charge on the basis of a percentage rate which you specify
 As of which due date for net payment a particular dunning level is reached
 Which dunning letter is sent to the customer For this, you define one or more layout sets.
DUNNING PROCEDURE
Dunn.procedure XYZ
Name DUNNING PROCEDURE FOR XYZ INDUSTRIES
Dunning interval in days 10
No.of dunning levels 4
Total due items from dung level
Min.days in arrears (acct) 7
Line item grace periods
Interest indicator P1 Standard itm int.cal
Public hol.cal.ID
Standard transaction dunning
Dun special G/L transactions ABZ (for Customers)
Ref.dun.proced. 0001 - Four-level dunning notice, every two weeks
Dunning levels and minimum amounts

Page 118 of 135
Spec Level 1 Level 2 Level 3 Level 4
Days in Arrears 20 30 50
Calculate Interest Yes Yes
Always Dunn notice Yes Yes Yes Yes
Print All items Yes Yes Yes Yes
Payment Deadline 1 2 2
Minimum amount INR 5000 10000 20000 30000
DUNNING PROCEDURE
Dunn.procedure XYZ1- DUNNING PROCEDURE FOR XYZ GROUP 1 LEVEL

Dunning interval in days 1
No.of dunning levels 2
Total due items from dunning level
Min.days in arrears (acct) 7
Line item grace periods 2
Interest indicator
Public hol.cal.ID
Standard transaction dunning
Dun special G/L transactions A (for Customers)
Dunning levels and minimum amounts
Spec Level 1
Days in Arrears 5
Calculate Interest
Always Dunn notice Yes
Print All items Yes
Payment Deadline
Minimum amount 1000
INR
6.3.3.6.3 Define dunning areas

No settings done.
6.3.3.6.4 Define dunning keys

6.3.3.6.5 Define dunning block reasons

6.3.3.6.6 Define dunning grouping

No settings done.
Page 119 of 135

6.3.3.6.7 Define interest rates
Interest ID Currency Valid From Debit % Credit %
01 INR 01.01.1999 15.000 18.000
6.3.3.6.8 Generate list for dunning program configuration

No settings required.
6.3.3.6.9 Develop enhancements to the dunning print program

No settings done.
6.3.3.6.10 Known/Negotiated Leave

No settings done.
6.3.3.7 Clearing Open Items
6.3.3.7.1 Define accounts for exchange rate differences

Refer the relevant section in GL for further details.
6.3.3.7.2 Define posting key for clearing open items

6.3.3.7.3 Carry out or check settings for processing open items

6.3.3.7.4 Prepare automatic clearing

Page 120 of 135

6.3.3.8 Down Payment Received

6.3.3.8.2 Define reconciliation accounts for customer down

payments
In this step, you define an account in which the customer down payments or down payment requests are
managed in the general ledger. In the case of down payments or down payment requests, the posting is
automatically made to this account instead of to the normal receivables account (reconciliation account).
The following settings are done for XYZ Chart of Accounts.

Accounts for Downpayments
Acct Sp. G/L Reco. G/L Acct det Plan

type ind acct acct tax clrng level
D A 222000 140610 FF
D A 222001 140620 FF
6.3.3.8.3 Define tax accounts for down payments received

In this step, you specify to which accounts the different tax types are to be posted. The system determines
these accounts for automatic postings.
Refer the relevant section in Taxes for details.
6.3.3.8.4 Define account for tax clearing

In this step, you define an output tax clearing account. This account is needed if you display down
payments gross in the customer account.
The settings for the procedures are SAP standard. No accounts have been set up for Tax clearing.
Page 121 of 135

6.3.3.9 Down Payment Made

6.3.3.9.2 Define alternative reconciliation account for down

payments
In this step, you define an account in which the vendor down payments are managed in the general ledger.
The down payment posting is then automatically made to this account instead of to the normal payables
account (reconciliation account).

Accounts for Downpayments
Acct Sp. G/L Reco. G/L acct Acct det. Plan

type ind acct tax clrng level
K A 140000 225601 FF
K A 140100 225601 FF
K A 140200 225800 FF
K A 140201 225800 FF
K A 140300 225800 FF
K A 140310 225800 FF
K A 140400 226000 FF
K A 140500 226000 FF
K A 140600 225900 FF
K A 140800 225800 FF
K F 140000 225800 FF
K F 140200 225800 FF
K F 140400 226000 FF
K F 140600 225800 FF
K F 140800 225800 FF
6.3.3.9.3 Define account for tax clearing

In this step, you define an input tax clearing account. This account is needed if you display down payments
gross in the vendor account.
Page 122 of 135

The settings for the procedures are SAP standard. No accounts have been set up for Tax clearing.
6.3.3.10 Bills of Exchange Receivable

6.3.3.10.2 Define alternative reconcil. acct for bills/exch.receivable

In this step, you define one or more accounts to which the payments by bill of exchange from your
customers are managed in the general ledger. For bill of exchange postings, the posting is made
automatically to these accounts instead of to the normal receivables account (reconciliation account). This
way it is possible to manage bills of exchange receivable separately from the normal receivables. A transfer
posting for balance sheet purposes is no longer necessary.

Accounts for Bills of Exchange Receivable

R 222000 222100 FW
R 222001 222101 FW
W 222000 222100
W 222001 222101
6.3.3.10.3 Define accounts for bill of exchange transactions

In this step, you define the account numbers and the posting keys for automatic postings which the system
makes when posting the payment by bill of exchange and bill of exchange usage. For some transactions
(posting a bill of exchange payment request, for example) you only need posting keys.

Process BDS Bank discount charges
Account
452300
Page 123 of 135

6.3.3.10.4 Maintain bill of exchange tax codes
Bill of exchange tax codes are used to be able to determine the taxes automatically when posting a bill of
exchange receivable. The tax codes are defined at client level. Later you can specify, on the basis of the
company code, whether the bill of exchange tax is to be posted and which tax code is to be used.
Not relevant.
6.3.3.10.5 Prepare bill of exchange charges statement

Not relevant.
6.3.3.10.6 Define bank sub accounts

In this step, you specify the bank sub accounts which display the bank-related bill liability. The bill liability
results from the bill of exchange usage.
XYZ- XYZ Group Chart of Accounts
BK acct Usage Sp. Customer Bank sub

G/L recon. account
ind acct for liab.
122003 D B 180000
122003 D W 180000
122003 I B 180200
122003 I W 180200
122013 D B 180010
122013 D W 180010
122013 I B 180010
122013 I W 180010
122023 D B 180020
122023 D W 180020
122023 I B 180020
122023 I W 180020
122033 D B 180030
122033 D W 180030
122033 I B 180030
122033 I W 180030
122043 D B 180040
122043 D W 180040
122043 I B 180040
122043 I W 180040
122103 D B 180050
122103 D W 180050
122103 I B 180050
122103 I W 180050
122153 D B 180000
122153 D W 180000
122153 I B 180200
122153 I W 180200
Page 124 of 135

122163 D B 180020
122163 D W 180020
122163 I B 180020
122163 I W 180020
224003 D W 180000
224003 I W 180200
224013 D W 180010
224013 I W 180010
224033 D W 180050
224033 I W 180050
224043 D W 180020
224043 I W 180020
224053 D W 180000
224053 I W 180200
224063 D W 180000
224063 I W 180200
224073 D W 180000
224073 I W 180200
224083 D W 180010
224083 I W 180010
224103 D W 180030
224103 I W 180030
224113 D W 180040
224113 I W 180040
224250 D W 180000
224600 D W 180000
6.3.3.10.7 Define bill of exchange payment period
No settings done.
6.3.3.10.8 Maintain bill of exchange status

No settings done.
6.3.3.10.9 Define additional days for remaining risk

No settings done.
6.3.3.10.10 Bill of Exchange Charges Statement Correspondence

No settings done.
6.3.3.10.11 Failed Payments Correspondence

No settings done.
6.3.3.10.12 Bill of Exchange Payment Request Dunning

No settings done
Page 125 of 135

6.3.3.11 Bills of Exchange Payable

6.3.3.11.2 Define alternative account for bill of exchange postings

No settings done.
6.3.3.12 Check/Bill of Exchange Transactions Received
No settings done.
6.3.3.13 Check/Bill of Exchange Transactions Issued

No settings done.
6.3.3.14 Internal Transfer Posting

No settings done under this heading
6.3.3.15 Other Special G/L Transactions

In the following steps, you make the specifications for special G/L transactions for which an offsetting
entry is generally made to the same G/L account. For example, guarantees are always posted to the same
offsetting account in the SAP System. The special G/L transaction specified are valid for all charts of
accounts.
For these special G/L transactions, you specify the number of the account for the offsetting entry in
addition to the alternative reconciliation account. In order to simplify this posting transaction, the system
makes this posting. To do this, it needs the G/L account number.
You can also add special G/L transactions to the ones delivered in the standard system. You do not
necessarily need an automatic offsetting entry for new special G/L transactions. Certain receivables, for
example, which are only transitory monies, are displayed in an alternative receivables account and in the
customer account. You set up an individual special G/L transaction for this. In this case, however, you do
not need an account for the offsetting entry.
6.3.3.15.2 Define alternative reconciliation account for customers

XYZ XYZ Group Chart of Accounts
Page 126 of 135

D G 222000 140700
D G 222001 140700
D X 222000 222100 FW
D X 222001 222101 FW
6.3.3.15.3 Define alternative reconciliation account for Vendors

In this step, you define accounts in which the postings to a customer account are managed in the general
ledger. The posting is automatically made to these accounts instead of to the normal reconciliation account.
XYZ XYZ Group Chart of Accounts

K G 140000 225850
K G 140050 225850
K G 140075 225850
K G 140100 225850
K G 140200 225850
K G 140201 225850
K G 140300 225850
K G 140310 225850
K G 140400 225850
K G 140500 225850
K G 140600 225850
K P 140000 225801 FF
K P 140200 225801 FF
K P 140201 225801 FF
K P 140400 225801 FF
K P 140600 225801 FF
K P 140800 225801 FF
6.3.3.15.4 Define accounts for automatic offsetting entry

In this step, you define the G/L accounts to which the system automatically carries out an offsetting entry
for specific special G/L transactions. These special G/L transactions include, for example, checks/bills of
exchange or guarantees.
You differentiate the account specification according to chart of accounts and a key which contains the
account type and the special G/L indicator.
Chartof Accounts SPL GL Indicator AutoOffsetting A/C
Page 127 of 135

XYZ DG 225860
XYZ KG 140750
6.3.3.15.5 Generate list for special general ledger

In this step, you call up a list of values stored via configuration for special G/L transactions. The list is
created for one company code in each case. At the end of the list, error statistics are issued.
6.3.3.15.6 Generate error list for special general ledger

In this step, you call up an error list for the configuration of automatic postings. The list is created for one
company code at a time. At the end of the list, the error statistics are issued. You can branch from the list
directly to the configuration of the system to make adjustments.
6.3.3.16 Interest Calculation
6.3.3.16.1 Interest Calculation Global Settings
6.3.3.16.1.1 Define interest calculation types

Refer the relevant section under GL accounting.
6.3.3.16.1.2 Define number ranges for forms

6.3.3.16.1.3 Prepare interest on arrears calculation

Refer the relevant section under GL accounting
6.3.3.16.1.4 Prepare account balance interest calculation

6.3.3.16.1.5 Prepare special G/L transaction interest calculation

No settings done.
6.3.3.16.2 Interest Calculation

6.3.3.16.3 Interest Posting
6.3.3.16.3.1 Prepare interest on arrears calculation (customers)

In this step, you define the specifications for posting the interest calculated as interest on arrears.
Page 128 of 135
The account determination is carried out via the posting interface of application 0002 (interest on arrears).
The following specifications are necessary:
 Account determination keys and posting details
First you determine which account determination keys are used. For the business transaction account
determination key, 1000 (interest earned) and 2000(interest paid) should be entered. The other account
determination keys (company code, interest indicator, business area) are optional. You use them if you want
to define interest posting in more detail.
For every combination of the account determination keys, you specify a debit posting key, a credit posting
key and account symbols (posting details). You use the account symbol 1000 for the customer posting. It is
not necessary to specify an account since the posting is made to the customer account. You do, however,
have to specify the posting keys.
 G/L accounts
For each G/L account symbol, you specify the account allocation for interest earned and interest paid in
full. You can differentiate the account specifications according to currencies.
 Document type
In the Goto menu option you can define a document type for posting the interest. In the standard system,
the document type DA is defined for posting interest.
No interest posting is planned. But the following settings have been made.
Specifications
Value 1000 2000

Value + +
Value + +
Value + +
Posting key 1 40
Special G/L ind
Acct symbol 1000 2
Compression
Posting key 50 16
Special G/L ind
Acct symbol 1 1000
Compression
Value
Value
Symbols
Acct symbol Text

1 Interest received
2 Interest paid
1000 Customer posting
Accounts
Acct symbol Currency G/L acct

1 INR 310002
2 INR 450560
1000 INR ++++++
Page 129 of 135

6.3.3.16.3.2 Prepare interest on arrears calculation (vendors)
No settings done.
6.3.3.16.3.3 Prepare customer account balance interest calculation

No settings done.
6.3.3.16.3.4 Prepare vendor account balance interest calculation
No settings done.
6.3.3.16.4 Define forms for interest indicators

In this step, you can specify which form is to be used for the letter on interest on arrears or account balance
interest for each interest indicator. The forms defined here are used if no other form is specified when
calculating interest.
The form you define with SAPscript (see "layout set") consists of a letter and further
information for the items or account balances on which interest is calculated. This
includes an overview of line items, an interest rate overview and an interest amount
overview.
Int. Co. Form name

ind. code
1 XYZ F_DUZI_01
1 ABC F_DUZI_01
2 XYZ F_D_INT_SCALE_00
2 ABC F_D_INT_SCALE_00
3 XYZ F_D_INT_SCALE_00
3 ABC F_D_INT_SCALE_00
4 XYZ F_DUZI_01
4 ABC F_DUZI_01
5 XYZ F_DUZI_01
5 ABC F_DUZI_01
B1 XYZ F_D_INT_SCALE_00
B1 ABC F_D_INT_SCALE_00
P1 XYZ F_DUZI_02
P1 ABC F_DUZI_02
P2 XYZ F_D_INT_SCALE_00
P2 ABC F_D_INT_SCALE_00
P3 XYZ F_DUZI_01
P3 ABC F_DUZI_01
P4 XYZ F_DUZI_01
Page 130 of 135

P4 ABC F_DUZI_01
P5 XYZ F_D_INT_SCALE_00
P5 ABC F_D_INT_SCALE_00
T1 XYZ F_DUZI_02
T1 ABC F_DUZI_02
6.3.3.17 Closing
6.3.3.17.1 Count
6.3.3.17.1.1 Balance Confirmation Correspondence
6.3.3.17.1.1.1 Carry out or check correspondence settings

6.3.3.17.1.1.2 Define reply addresses for balance confirmation
6.3.3.17.1.1.3 Specify selection criteria for balance confirmation

In this step, you choose the selection criteria which you need for the balance confirmation in addition to the
existing ones from a list.
6.3.3.17.1.1.4 Prepare balance confirmations for customers

In this step, you define selection variants for the program that creates the balance confirmation for
customers.
Variants can be created using the Accounting menu.
6.3.3.17.1.1.5 Prepare balance confirmations for vendors

In this step, you define selection variants for the program that creates the balance confirmation for Vendors.
Variants can be created using the Accounting menu.
6.3.3.17.2 Valuate
Page 131 of 135

6.3.3.17.2.1 Foreign Currency Valuation
6.3.3.17.2.1.1 Define valuation methods

The following valuation methods have been created
Valuation method XYZ KTO KTO1 ABC ABC1 ABC5 ABC6

Display by line item X X X X X
Display by open item account X X
Valuation 2
Determ.exch.rate type fr.acct bal. X X X X
Exch.rate type from invoice reference X X X
Exchange hedging
Debit bal. E/R type B G G B B G G
Credit bal. E/R type B B B B B G G
Lowest value prncple X
Exchange hedging
Debit bal. E/R type B G G B B G G

Credit bal. E/R type B B B B B G G
Lowest value prncple X
Strict lowest value principle
Document type SA SA SA SA SA SA SA
Display by reconciliation acct
Always evaluate X X X X X X
Local curr.type X X X X X X X
Extract
Method Description
KTO FC bal.per acct,a/c bal -always val- G and B
KTO1 FC bal. always valuate-OI- G & B types-OI
ABC FC val exchange rate type B-always valuate-a/c bal
ABC1 FC val exch rate type B-open item-always-a/c bal
ABC5 FC valuation exchange rate type g-always-a/c bal
ABC6 FC valuation exchange rate type G For open item
6.3.3.17.2.1.2 Prepare automatic posting for foreign currency

valuation
Transaction KDB Exchange rate differences in FC balances
E/R diff. key E/R loss acct E/R gains acct Roll.val.exp. Roll.val.rev.
DEM 453000 300401

FXD 453000 300401
Page 132 of 135

JPY 453000 300401
USD 453000 300401
Transaction KDF Exchange rate difference in open items

Refer 6.3.3.3.1.5
6.3.3.17.2.2 Reserve for Bad Debt

No settings done.
6.3.3.17.3 Regroup
No settings done.
6.3.3.18 Integration
No settings done.
6.3.4 Tools
No settings done.
6.3.5 Information System

SAP standard settings have been used under this heading
6.3.6 Credit Management

Refer the SD module documentation for further details.
6.3.7 Additional Components

Page 133 of 135

Ficustomisation Fixed

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Ficustomisation Fixed

Uploaded by

Copyright:

Available Formats

XYZ INDUSTRIES LIMITED

1.1 SCOPE OF THE DOCUMENT....................................................................................5

1.2 DOCUMENT OBJECTIVES........................................................................................5

1.3 DOCUMENT STRUCTURE.........................................................................................5

1.4 TARGET AUDIENCE...................................................................................................5

2 OVERVIEW OF THE PROPOSED SYSTEM..................................................6

2.1 ORGANISATIONAL STRUCTURES..........................................................................6

2.2 MASTER DATA.............................................................................................................7

2.3 INTERFACE WITH NON-SAP SYSTEM...................................................................7

3 CONFIGURATION FOR FI MODULE.............................................................8

3.1 ABBREVIATIONS USED.............................................................................................8

4.1 SET COUNTRIES..........................................................................................................9

4.3 CHECK UNITS OF MEASUREMENT.....................................................................16

4.4 MAINTAIN CALENDAR............................................................................................16

4.6 MAINTAIN STANDARD SETTINGS FOR SAP BUSINESS WORKFLOW.........17

4.7 FIELD DISPLAY CHARACTERISTICS...................................................................17

5.1 MAINTAIN GRAPHIC...............................................................................................18

5.2 MAINTAIN STRUCTURE..........................................................................................18

5.3 CONSISTENCY CHECK............................................................................................21

6.1 FINANCIAL ACCOUNTING GLOBAL SETTINGS...............................................22

6.2 GENERAL LEDGER ACCOUNTING.......................................................................55

6.3 ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE....................................95

1.2 Document Objectives

1.3 Document Structure

1.4 Target Audience

2.1 Organisational Structures

2.1.3 Credit Control Area

2.1.4 Business Area

2.2 Master Data

General ledger Accounts

2.3 Interface with NON-SAP System

3.1 Abbreviations used

4.1.1 Define countries

This data is then checked during master data maintenance.

Code Value Description

4.1.2 Set country-specific checks

This data is then checked during master data maintenance.

Code Length Check Rule Description

4.1.3 Insert regions

The usage can vary from country to country.

Country Region Description

4.1.4 Define country codes

SAP settings used.

SAP settings used.

4.1.6 Country codes - telex: Define exceptions

SAP settings used.

4.2.1 Check currency codes

Code Value Description

4.2.2 Set decimal places for currencies

The following settings have been made :

Other settings are standard SAP settings.

Type Description (Usage)

4.2.4 Maintain exchange rate spreads

4.2.5 Define rounding rules for currencies

No settings done for INR. Other settings are SAP standard.

4.2.6 Define conversion factors for currency conversion

Type From To Translation Ratio Alt Exch Valid from

Type From To Translation Ratio Alt Exch Valid from

4.2.7 Enter exchange rates

The exchange rates are defined by period ("valid from").

4.3 Check units of measurement

Dimensions and ISO codes are SAP standard.

Measur Unit Commercial Technical Measur Unit of Text

4.4 Maintain calendar