Configuration of Enterprise Structure. -Mohd. Abdul Mateen & Mohd.

Minhajuddin

Sap stands for Systems, Applications, and Products in Data

Processing. SAP is the worlds most widely used Enterprise Resource Planning System. Various Other modules in SAP:

SAP HR SAP SD SAP Basis SAP ABAP And many more.

Inventory

Finance

Sales Team

HR Factory

Customer

Vendor for Spares

Inventory

Finance

Sales Team

Centralized System (ERP)

HR

Factory Customer

Vendor for Spares

Mateens Group of Companies (MATEEN)

Company

Mateens Technologies (1999)

Mateens Pharma (1998)

Company Code

Asia Pacific (A999)

Europe (B999)

Business Area

HIT SPRO

Click IMG Reference

The user will then receive a prompt to create a request id. Request id is an id with reference to which all the creations done in SAP system are stored. Create a new Request Id. Click on new in the below box.

Click the below highlighted option to create company code for Mateens Technologies

Double click on Edit Company Code Data from next screen and select New Entry from next screen.

Check the sample below and create a similar company code. (1999). Once created check the request id and save.

Same path as defining company or code. Click Define Business Area then New Entry and create a business Area

Now that we have created a company and the company codes its time that we create a relationship between them so that company code 1999 should be related to the company Mateen. Use F4 or position to search for company.

Mateens Group of Companies (MATEEN)

Company

Mateens Technologies (1999)

Mateens Pharma (1998)

Company Code

Asia Pacific (A999)

Europe (B999)

Business Area

A quick recap.

As there are various accounting periods in the world thus SAP provides an option to choose the applicable accounting period for our company. Default options exists to choose the suitable. I for our company choose k4 which is Jan-Dec 2012. This is a regular posting period.Special periods are 4 which are used to pass transactions if the period is over. To check the fiscal year variant select k4 and view details. No changes required as I will use these for our company.

Now I choose the fiscal variant k4 for my company code (Mateens Technologies) so now it will have an accounting period which starts from Jan-Dec and then 4 special periods from jan-april next year.

Choose Assign from the below navigation

Put K4 in the below and save and proceed. Thus now the company code is linked to this Fiscal Year Variant.

In this step we define a variant for open posting period for each company code. Choose similar name to company code for easy reference.

Use the below navigation to define a variant.

Save and proceed.

Posting period is independent of fiscal year variant. Posting period determines which period is open for an account type. As there are many accounts like S-Gl, A-Assets, D-Customer, L-Vendors, I can specify which account is open for which period. For simplicity I choose + which means that all account types use one defined posting period which is in synch with Fiscal period.

Click on any existing and do a copy as and rename it for your own posting period. Like the below where I give posting period variant as 1999.

Account type + is used which means all account will have posting period from Jan-2010 to Dec-2010 and special periods to complete activities like tax, reconciliation activities will be next 4 months which will be special posting period.

Now assign the posting period variant to the company code 1999. Below navigation to reach the assignment screen.

In this step we define the specific interval within which documents should be created in SAP. the navigation is shown below. Double click on define document type

Select SA and click on details and then click on Number range as shown below. In the next screen click on change intervals and Add intervals

Enter the range information based on the requirement for the fiscal year and click on save

We have to define field status outside of the master record. Mark the field status you need for each field or field group under a field status group. Then assign the field status group to individual G/L accounts in the G/L account master records. Field status groups are independent of company code, attaching instead to the field status variant. A separate variant exists in each company code for field status groups in the standard delivered system. The variant name is the same as the company code, and each company code is assigned to this variant.

Here we assign the company code m999 to the field status variant 1999 which we created in the previous step

A chart of accounts is a listing of the names of the accounts that a company has identified and made available for recording transactions in its general ledger. Within the chart of accounts you can seggregate accounts into various account groups which will have a range to choose for the account number. Balance sheet accounts Assets Liabilities Owner's (Stockholders') Equity Income statement accounts Operating Revenues Operating Expenses Non-operating Revenues and Gains Non-operating Expenses and Losses

Chart of Account for Mateens Group of companies (1999)

Assets Account Group

100401-Cash 100402-Property 100403-Receivables 100404-Bank Balance

Liability Account Group

Revenue Account Group

100501-Loan 100502-Payable 100503-Advances 100504-Retained Earnings

100836-Sales 100837-Dividends 100838-Fees Received 100839-Interest Earned.

Double click the below navigation path and click on New Entries from the next screen.

Enter the information for new chart of account as per below and save.

Now that we have created the chart of Account-1999. We need to assign the company code to COA. For each Company Code we need to assign the COA to be used. From the previous navigation of step 13 select Assign Company code to chart of account and enter the info as per below.

Mateens Group of Companies (MATEEN)

Company

Mateens Technologies (1999)

Mateens Pharma (1998)

Company Code

(Account Groups with diff ranges for accounts)

X Chart of Account Y Chart of Account

(Account Groups with diff ranges for accounts)

The account group is a summary of accounts based on criteria that effects how master records are created. It determines the number interval from which the account number is selected when a G/L account is created like 100401-100560 is for account group-Assets. Any account required for assets can be selected from this interval only. It is necessary to have at least 2 account groups, one for B/S and another one for P&L accounts. But often they are divided further into many groups viz share capital, secured loans, reserves, current assets Use the below navigation to define account groups and click new entry.

Provide the number range for each account group as per the below and save.

What is Retained Earnings: The percentage of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders' equity on the balance sheet. In most cases, companies retain their earnings in order to invest them into areas where the company can create growth opportunities, such as buying new machinery or spending the money on more research and development. Now lets see how we create the account in SAP.

Use the below navigation give the Chart of Account 1999 and enter the below from 2nd screen to allocate A/C 100831 to Retained Earnings Account. You get an error as master account is not created continue.

Tolerance is a limit assigned to a G/L that is the maximum amount which can be posted to the G/L is restricted. Use the below navigation to define the tolerance group for G/L. And click on New entry from next screen.

This step shows the maximum clearing difference permitted by the system per Debit and Credit.

In this activity, you predefine various amount limits for your employees with which you determine: the maximum the maximum the maximum the maximum document amount the employee is authorized to post amount the employee can enter as a line item in a customer or vendor account cash discount percentage the employee can grant in a line item acceptable tolerance for payment differences for the employee

Update the screen for New Entries as per below and save.

In this activity, 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. Navigation is per below. Check details from the below screen.

Check the highlighted options and save.

There are 2 documents posted in SAP FICO for each transaction by default, thus one should be deactivated so select the below navigation and make the company code inactive.

Select Deactivate from 1st screenshot below and then make 1999 inactive.