Sample Materials for SAP FICO

SAP ECC 6.0 FICO - Content Version 1.0

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SAP ECC 6.0

SAP FICOFinancial Accounting

Configuration ManualVersion – 01

Property Of :

Sapphire Global Consulting Services


Contents

1. Introduction …………………………………………………………………………..1

1.1 What is ERP ?1.2 Introduction about SAP1.3 What Makes SAP Difference1.4 SAP R/3 Core Business Process1.5 What is the meaning ‘R’ in R/3 System1.6 What is SAP System Landscape

2. Enterprise Structure…………………………………………………………………6

2.1 Define Company2.2 Define Company Code2.3 Define Business Area2.4 Define Credit Controlling Area2.5 Assign Company Code to Company2.6 Assign Credit Controlling Area to Company Code

3. Financial Accounting Global Settings …………………………………………..10

3.1 Company Code Global Setting3.2 Activate Extended Withholding Tax3.3 Define Additional Local Currencies3.4 Set Company Code to Productive3.5 Business Area Global Setting 3.6 Fiscal Year Variant

3.6.1 Maintain Fiscal Year Variant3.6.2 Assign Fiscal Year Variant to Company Code

3.7 Enable Fiscal Year Default3.8 Enable Default Value Date3.9 Posting Period Variant

3.9.1 Define Variant for Open Posting Periods3.9.2 Open & Close Posting Periods3.9.3 Assign Variant to Company Code

3.10Field Status Variant3.10.1 Maintain Field Status Variants3.10.2 Assign Company code to Field Status Variants

3.11Document 3.11.1 Define Document Number Ranges3.11.2 Copy to Company Code3.11.3 Copy to Fiscal year3.11.4 Define Maintain Exchange Rate Differences3.11.5 Per Foreign Currency

3.12Tolerance Group3.12.1 Define Tolerance Group for Employees.3.12.2 Assign Users/Tolerance Groups.3.12.3 Screen Variant for Document entry 3.12.4 Maximum Exchange rate difference3.12.5 Define Text for Line Items.



4. General Ledger Accounting………………………………………………22

4.1 Define Chart of Depreciation4.2 Define Account Groups4.3 Retained earnings Account4.4 Assign Company Code to Chart of Accounts4.5 G/L Master Records

4.5.1 Creation Of G/L Master Records4.5.2 Edit Chart of Accounts Data4.5.3 Edit Company Code Data4.5.4 Delete G/L Accounts 4.5.5 Delete Chart of Accounts4.5.6 Create Additional sort key

5. Cash Journal……………………………………………………………….29

5.1 Create G/L Account for Cash Journal5.2 Define Document types for Cash Journal5.3 Define Number Ranges for Cash journal5.4 Define Number Range intervals for cash journal 5.5 Set up cash journal5.6 Define Business Transactions5.7 Setup Print Parameters for cash journal5.8 Special cash journal designed for the User

6. Foreign Currency Valuation………………………………………………38

6.1 Check Exchange Rate Type6.2 Define Valuation methods6.3 Assign G/L Accounting for foreign currency valuation6.4 Foreign currency valuation at closer6.5 Foreign Translation Loss/Gain

7. counts Receivable…………………………………………………………40

7.1 Define Account Groups7.2 Define Number ranges7.3 Assign number ranges to vendor account groups7.4 Dunning

7.4.1 Define Dunning Area7.4.2 Define Dunning Key7.4.3 Define Dunning Block Reasons7.4.4 Dunning Procedures

7.5 Bill of Exchange Receivable7.5.1 Define Alternative Reconciliation Accounts for Bill of Exchange Receivable.7.5.2 Define Accounts for Bill of Exchange Transactions7.5.3 Define Bank Sub Account

7.6 Down Payments7.6.1 Define Reconciliation Accounts for Customers Down Payments.7.6.2 Dealer Deposits

8. Accounts Payable …………………………………………………………498.1 Define Account Groups8.2 Define Number ranges



8.3 Assign number ranges to customer account groups8.4 House Bank

8.4.1 Define House Bank8.4.2 Configuration Bank Accounts

8.5 Terms Of Payment and cash discount8.5.1 Maintain Terms of Payments 8.5.2 Creation of G/L Account for Cash discount8.5.3 Define Automatic Posting for cash discount received8.5.4 Assign Terms of Payment in Vendor Master Records

8.6 Bill Of Exchange Payable8.6.1 Define Alternative Reconciliation Account for Bill of Exchange Posting

9. Interest Calculation …………………………………………………………..59

9.1 Define Interest Calculation Types9.2 Define Number ranges for Interest Forms9.3 Prepare Interest on Arrears calculations9.4 Prepare Account Balance Interest Calculations.9.5 Prepare SPL. G/L Transaction Interest Calculations9.6 Define Reference Interest Rates9.7 Define Time Based Terms9.8 Enter Interest Values9.9 Specify functional module for Interest rate Determination9.10A/R : Calculation of Interest on Arrears9.11A/R: Balance Interest Calculation9.12A/P : Balance Interest Calculation9.13Assign Forms for Interest Indicators

10. Tax on Sales and Purchase ……………………………………………..72

10.1Check Calculation Procedure10.2Assign Country to Calculation Procedure.10.3Check and Change Setting for tax processing10.4Specify structure for Tax Juristic Code 10.5Define Tax Jurisdiction10.6Define Tax Codes for Sales & Purchase10.7Specify Base Amount10.8Change Foreign Currency Translation10.9Define Tax Accounts10.10 Assign Tax Codes for Non Taxable Transaction

11. Extended Withholding Taxes …………………………………………….8111.1Basic Settings

11.1.1 Check Withholding Tax Countries11.1.2 Define Official Withholding Tax Code11.1.3 Define Reasons for Exemption 11.1.4 Check Recipient type11.1.5 Check Income Type

11.2Calculation11.2.1 Withholding Tax Type 11.2.1.1 Withholding Tax type for Invoice Posting11.2.1.2 Define Withholding Tax Type for Payment posting11.2.1.3 Define Rounding Rule for Withholding Tax Type11.2.2 Withholding Tax Code10.2.2.1 Define Withholding Tax Code



11.3Accounts for withholding Tax11.3.1 Define Accounts for withholding Tax to be paid over11.3.2 Define Accounts for withholding Tax for Gross Up offsetting Entry

11.4Certificate Numbering for Withholding Tax11.4.1 Define Numbering Classes11.4.2 Define Numbering Groups11.4.3 Define Number Ranges11.4.4 Assign Numbering Group to Numbering Class11.4.5 Assign Number Concept to company code country11.4.6 Numbering Concept Option 1 – Assign Numbering Class

12. Creating Balance Sheet & profit and loss Accounts……………….90

12.1Define Financial Statement Version

13. Integration Between

13.1 Integration Between MM and FI ………………………………………9313.2 Integration Between SD and FI ……………………………………….117



1. Introduction

1.1 What is ERP?

Enterprise resource planning software, or ERP, doesn’t live up to its acronym. Forget about planning—it doesn’t do much of that—and forget about resource, a throwaway term. But remember the enterprise part. This is ERP’s true ambition. It attempts to integrate all departments and functions across a company onto a single computer system that can serve all those different departments’ particular needs.

ERP is the acronym of Enterprise Resource Planning. ERP utilizes ERP software applications to improve the performance of organizations' resource planning, management control and operational control. ERP software is multi-module application software that integrates activities across functional departments, from product planning, parts purchasing, inventory control, product distribution, to order tracking. ERP software may include application modules for the finance, accounting and human resources aspects of a business.

1.2 Introduction About SAP

SAP - Systems, Application, Products in Data Processing.ERP software facilitates the flow of information among all the processes of an organization’s supply chain .ERP products are available from several vendors, such as SAP AG, Oracle .The ERP software market leader is SAP AG with the SAP R/3 System

SAP was founded in 1972 in Walldorf, Germany. It stands for Systems, Applications and Products in Data Processing. Over the years, it has grown and evolved to become the world premier provider of client/server business solutions for which it is so well known today. The SAP R/3 enterprise application suite for open client/server systems has established a new standards for providing business information management solutions.

SAP product are consider excellent but not perfect. The main problems with software product is that it can never be perfect.

The main advantage of using SAP as your company ERP system is that SAP have a very high level of integration among its individual applications which guarantee consistency of data throughout the system and the company itself.

1.3 What makes SAP different?• One information system in an enterprise• All applications access common data• Real events in the business initiate transactions• Accounting is done automatically by events in sales and production• Sales can see when products can be delivered• Production schedules are driven by sales

The whole system is designed to be real-time and not historicalSAP R/3 HistorySAP R/3 is an ERP (Enterprise Resource Planning) software Package. In the acronym SAP:

• S Systems



• A Applications• P Products in Data Processing

In 1972, five former IBM programmers formed the company called SAP AG in Germany and released the first version of SAP.

Timeline:• 1972: SAP AG founded in Germany.• 1979: SAP R/2 introduced for mainframe computers.• 1992: SAP R/3 released as client-server application.• 1996: SAP R/3 became partially Internet enabled.• 1997: Developed and launched the new dimension product line including CRM, SCM, and Data Warehousing solutions.• 1999: SAP announced mySAP.com, the next generation of its Enterprise Application System, based on the Internet architecture.• 2000-2005: Introduced mySAP business Suite, NetWeaver, and XApplications.

1.4 SAP R/3 Core Business Processes


Sample Materials for SAP FICO

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