Hi,

You can list out the process on the following lines : 1. Chart of accounts to enable you to create GL accounts and then Financial statement Version. 2. Master data creation for Vendors, Customers & Assets. 3. Bank data and the currencies used by the client in their existing transactions. 4. Account receivable process for creation of invoices & receive payment. 5. Account payable process of creation of invoices, make payment, automatic payment 6. Asset acquisition process and depreciation. 7. Capturing input/output tax and Withholding taxes. 8. Bank reconciliation process. 9. Correspondence process like sending payment advices and dunning. 10 Periodic processing like recurring entries and yearly closing. -
Hi friend

The Business Process purely related to FI

1) Down Payment Request

2) Down Payment

3) Invoice

4) Down Payment Clearing

5) Payment

6) APP

-Like SD and MM integration as highlighted before, SAP also cover some of the integration area related to Material Management and Financial Accounting components of SAP R/3. Under this article, some of the important steps related MM-FI Integration have been highlighted. This complete integration is covered in SPRO under the node Valuation and Account Assignment (Account Determination & Automatic Postings). MM-FI Account Determination & Automatic Postings As you know each and every goods movements (goods receipt, issue, consumption etc.) have its impact on quantity and valuation stock of materials moved in or out or consumed. To track this movement in terms of quantity and value youv need to post these movements in different General Ledger accounts of the company. In standard SAP these postings are available automatically in Invoice Verification and Inventory Management for all transactions which are relevant to Material Management and Financial & Cost Accounting. For posting these transactions to appropriate accounts you need to create some General Ledger accounts (Stock account, Consumption account, GR/IR clearing account etc.) in Financial Accounting with assignment to the following so as when posting the goods movement, the user need not to enter a G/L account manually, instead SAP R/3 System should automatically finds these accounts to which these postings needs to be made using the following data:

Chart of accounts of the company code Valuation grouping code for the valuation area Transaction/event key (internal processing key) Account grouping (for offsetting entries, consignment liabilities, and price differences) Valuation class of material or (in case of split valuation) the valuation type Account Category Reference Movement Types Account Groupings for Movement Types Different G/L Accounts Assigned to Different Transaction Keys & Account Grouping

Path: SAP Best Practices --> Baseline Packages --> Based on SAP ECC 5.00 --> Select Country: for eg, Localized for India --> Technical Information --> Building Blocks --> Select Country for eg, India --> List of Basic Configuration & scenarios will be listed

Through T.code Obyc, I configure the BSX Key for Inventory Material. Configure Valutiaon Class, and Valuation Modifier and Given G.L. Account Number and save. After configuration all these, what are step to configure because I have been Interviwed by this question and I don't know what are next step.

Transaction code : OBYC (in easy access) In this transcation we have to specify GL account codes for material valuation created by MM consultants. The process in MM is here below: 1) Purchase Order : Tr code ME21N - here no integration required with FI 2) Goods Issue : Tr Code MIGO - here no integratinwith FI 3) Invoice Reciept - Tr Code MIRO - here when the invoice is recieved & MM process the transaction based on OBYC configuration system will generate FI document. System also generates Material document as well 4) Payment : Tr code F110 - Here also the the transcation affects FI FI-SD integation: This integration done using Tr Code VKOA. here we have to define GL account codes to Condition types. Process : 1) SD Raises Sales Order - No implication in FI 2) SD raises Delivery doc - No implication in FI 3) SD processes billing - no implication in FI 4) SD releases billing doc to FI - FI document gets generated (Tr Code VFX3) The theory of how MM activity triggers A/c posting is: Each movement type has quantity and value string, which decides what to update. Also each movement type has transaction event key (account modifier) which in turn depending upon valuation grouping code and valuation class decides which G/L account to post. The flow is as follows: Material type --> Account Category reference --> Valuation class -->Material. Movement type -->Transaction event key-->Account modifier. You have to do the configuration settings using Tr. code OBYC. Try with Tr.code OMBW to check which G/L accounts are being hit on Plant, Material and movement type

Stock posting (BSX) - This transaction is used for all postings to stock accounts. Such postings are effected, for example: In inventory management in the case of goods receipts to own stock and goods issues from own stock.

In invoice verification, if price differences occur in connection with incoming invoices for materials valuated at moving average price and there is adequate stock coverage. In order settlement, if the order is assigned to a material with moving average price and the actual costs at the time of settlement vary from the actual costs at the time of goods receiptBecause this transaction is dependent on the valuation class, it is possible to manage materials with different valuation classes in separate stock accounts. Caution: Take care to ensure that: A stock account is not used for any transaction other than BSX. Postings are not made to the account manually. The account is not changed in the productive system before all stock has been booked out of it. Otherwise differences would arise between the total stock value of the material master records and the balance on the stock account. Offsetting entry for stock posting (GBB) - Offsetting entries for stock postings are used in Inventory Management. They are dependent on the account grouping to which each movement type is assigned. The following account groupings are defined in the standard system:

AUA: for order settlement AUF: for goods receipts for orders (without account assignment) and for order settlement if AUA is not maintained AUI: Subsequent adjustment of actual price from cost center directly to material (with account assignment) BSA: for initial entry of stock balances INV: for expenditure/income from inventory differences VAX: for goods issues for sales orders without account assignment object (the account is not a cost element) VAY: for goods issues for sales orders with account assignment object (account is a cost element) VBO: for consumption from stock of material provided to vendor VBR: for internal goods issues (for example, for cost center) VKA: for sales order account assignment (for example, for individual purchase order) VKP: for project account assignment (for example, for individual PO) VNG: for scrapping/destruction VQP: for sample withdrawals without account assignment VQY: for sample withdrawals with account assignment ZOB: for goods receipts without purchase orders (mvt type 501) ZOF: for goods receipts without production orders (mvt types 521 and 531)

You can also define your own account groupings. If you intend to post goods issues for cost centers (mvt type 201) and goods issues for orders (mvt type 261) to separate consumption accounts, you can assign the account grouping ZZZ to movement type 201 and account grouping YYY to movement type 261. Caution: If you use goods receipts without a purchase order in your system (movement type 501), you have to check to which accounts the account groupings are assigned ZOB. If you expect invoices for the goods receipts, and these invoices can only be posted in Accounting, you can enter a clearing account (similar to a GR/IR clearing account though without open item management), which is cleared in Accounting when you post the vendor invoice. Note that the goods movement is valuated with the valuation price of the material if no external amount has been entered. As no account assignment has been entered in the standard system, the assigned account is not defined as a cost element. If you assign a cost element, you have to enter an account assignment via the field selection or maintain an automatic account assignment for the cost element. GR/IR clearing (WRX) - Postings to the GR/IR clearing account occur in the case of goods and invoice receipts against purchase orders. Caution: You must set the Balances in local currency only indicator for the GR/IR clearing account to enable the open items to be cleared. Price differences (PRD) - Price differences arise for materials valuated at standard price in the case of all movements and invoices with a value that differs from the standard price. Examples: goods receipts against purchase orders (if the PO price differs from the standard price dardpreis), goods issues in respect of which an external amount is entered, invoices (if the invoice price differs from the PO price and the standard price). Price differences can also arise in the case of materials with moving average price if there is not enough stock to cover the invoiced quantity. In the case of goods movements in the negative range, the moving average price is not changed. Instead, any price differences arising are posted to a price difference account. Depending on the settings for the posting rules for transaction/event key PRD, it is possible to work with or without account modification. If you use account modification, the following modifications are available in the standard system: None for goods and invoice receipts against purchase orders. Purchase account(EIN), purchase offsetting account (EKG), freight purchase account (FRE)

These transactions are used only if Purchase Account Management is active in the company code. Note Due to special legal requirements, this function was developed specially for certain countries (Belgium, Spain , Portugal, France, Italy, and Finland). Before you use this function, check whether you need to use it in your country.

-What is the difference between Journal Entry and Journal Voucher? Explain briefly? Answer: Journal Voucher is a draft which needs to be approved before it is posted to the General Ledger - bottom line is it does not affect General Ledger dollars until it is approved and posted. Journal Entry is a real live document which updates the General Ledger dollars as soon as it is created. Journal Entry is the final Account Posting and Journal Voucher is just a Save as draft in which Journal Entries are saved as draft. When you post Journal Entries from Journal Voucher it gets finalize for accounting. Basically, a clerk will create a Journal Voucher where they believe the dollars should be posted to specific GL Accounts. At this point no dollars are posted to GL. Then a supervisor or manager goes in to review the Journal Vouchers which were created and either approves those vouchers so they become Journal Entries and, therefore, post the actual dollars - OR - the supervisor can change the Journal Voucher with different accounts/amounts - OR - the supervisor can delete the Journal Voucher and have a new one created by the clerk. The whole reason for the Journal Voucher is to give some control to the process so the dollars which are posted are accurate. Think of it basically as a double check to make sure things are going correctly. Now having said that, SAP B1 creates Journal Entries automatically when a document is created - for example, posting dollars to Business Partner and Sales GL Account when an AR Invoice is created. There are many Journal

Entries created by SAP B1 in this way. If you encoded directly in Journal Entry, the entry is automatically posted in the General Ledger. On the other hand, if you encoded in the Journal Voucher, which consists of one or more journal entries, the entries will not be posted to GL not unless the Journal Voucher is approved. You may use the Journal Voucher to group similar journal entries. To get all journal entries posted: Usually we pass journal entry vide SA document type. - Go to FB03 and enter company code and year and click document list. - Enter Fiscal year and Document type as SA ( You can enter other document type as well if you need) - Execute - You get all SA documents - Go to Change layout and select username / session / transaction etc., and other fields and move it to left and sav

-SAP Financial Accounting (SAP FI) The Financial Accounting (SAP FI) module in SAP is designed to capture organizations business transactions in a manner that will satisfy external reporting requirements. Local legal considerations are pre-delivered with the system and the ability to manage and report on multiple companies in multiple countries with multiple currencies is part of standard functionality. Integration with Sales and Distribution, Purchasing and Materials Management allows for the ability to select any financial transaction and "Drill Down" to the originating transaction whether it is a purchase Order, Sales Order or material movement. Financial Accounting includes the following sub-modules:

General Ledger (FI-GL) Accounts Payable (FI-AP) Accounts Receivable (FI-AR) Bank Accounting (FI-BL) Asset Accounting (FI-AA) Funds Management (FI-FM)

Travel Management (FI-TV) Special Purpose Ledger (FI-SL) (I am not sure this is really considered a module anymore)

The flexibility of the Finance modules organizational structure gives the module the ability to handle any economic situation. Whether a smaller organization with a single legal entity or a large organization with numerous companies, consolidations and varying legal requirements, the FI module can support and automate most financial postings and reporting. Below is a listing of the main organizational elements in the Finance module:

Company Code - Represents a legal reporting entity. There can be numerous company codes within an organization. Each has its own balanced books and reports itself as a single economic entity. Credit Control Area - If credit management is being used, this sets the general parameters for how credit is managed. The credit control area can control credit for a single company code representing a decentralized credit management approach or multiple company codes representing a more centralized credit management approach. Chart of Accounts - The system supports single or multiple charts of accounts providing the ability to record transactions and report financially in many different regulatory environments. A chart of accounts can support multiple Company Codes if necessary.

Business process associated with the SAP FI module:

The Finance Module is designed to record financial transactions in a manner consistent with external reporting. External reporting must be in compliance with a country's accounting principles and is required for public entities, regulatory agencies and information required by banks and other lenders. The module also handles legal consolidations, receivables, payables, fixed assets as well as banking functions if required. This is brief review of the components and processes associated with the SAP FI module. For a more in-depth understanding of the Financial Accounting module, please review our available SAP Financial Accounting training. Please Note: The Learn SAP pages on this site are intended to be brief summaries for SAP customers who are encountering SAP for the first time. For more advanced knowledge, please review the articles in our SAP Library, and our SAP Training offerings for both Super Users and Project Teams.