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TFIN 50
BASIC SETTINGS
ORGANIZATIONAL UNITS
Organizational units are used to structure business functions and for reporting. The
organizational units of Financial Accounting are used for external reporting
purposes, that is, they fulfil requirements that your business is subject to from
external parties, for example, legal regulations. The financial statements for
example, are created based on the organizational units of Financial Accounting.
Use
You create your company-specific organizational structure in the SAP System by
defining the organizational units and making the basic settings. Defining
organizational units for Financial Accounting is obligatory, that is, you have to
define these units in order to be able to implement the Financial Accounting
component.
Integration
In the SAP System, you define the relevant organizational units for each
component that you are implementing. For example, for Sales and Distribution, you
define sales organizations, distribution channels, and divisions (product groups).
Similarly, for Purchasing, you define purchasing organizations, evaluation levels,
plants, and storage locations. The organizational units are independent of one
another at this stage.
To transfer data between the individual components, you have to assign the
organizational units to each other. You only need to make these assignments once
in the system. Whenever you enter data subsequently, it is automatically
transferred.
The client is the highest level in the SAP ERP system hierarchy. Each client is a
technically independent unit with separate master records and a complete set of
tables and data.
The most important organization unit of financial accounting is the company code.
A company code represents an independent balancing/legal accounting entity.
And is the minimum structure necessary in SAP ERP Financials.
Every organization for which a financial statement and profit and loss statement
(P&L) is to be created must be stored as a company code in the SAP system.
Client
Definition
A commercially, organizationally, and technically self-contained unit within an SAP
System. Clients have their own master records and set of tables.
The definition of the client organizational unit is obligatory.
Use
You only need to make these specifications, or enter this data once. This ensures
that the data is consistent.
Users must enter a client key when they log on to the SAP System. This defines
the client in which they wish to work. All the entries you make are saved per client.
Data processing and analysis is also carried out per client.
Company
Definition
The smallest organizational unit for which individual financial statements are
created according to the relevant legal requirements. A company can include one
or more company codes.
The definition of the company organizational unit is optional.
Client
Company
Code
Business area
Profit Center
Segment
Highest Level
Specifications or data valid for all organizational units
Each Client is an independent unit
Corporate group or group of affiliated companies
Independent balancing/legal accounting entity
Minimum structure necessary
Usually created per country
Alphanumeric ID
Business area: 4 digit ID
Segment: 10 characters ID
Company
Controlling
area
Use
A companys financial statements also form the basis of consolidated financial
statements.
All of the company codes within a company must use the same chart of accounts
and fiscal year. However, each company code can have a different local currency.
Company Code
Definition
Smallest organizational unit of external accounting for which a complete, self-
contained set of accounts can be created. This includes the entry of all
transactions that must be posted and the creation of all items for legal individual
financial statements, such as the balance sheet and the profit and loss statement.
The definition of the company code organizational unit is obligatory.
Use
The company code is the central organizational unit of external accounting within
the SAP System. You must define at least one company code before implementing
the Financial Accounting component. The business transactions relevant for
Financial Accounting are entered, saved, and evaluated at company code level.
You usually create a legally independent company in the SAP System with one
company code. However, you can also define a company code according to other
criteria. A company code could also be a separate, but not independent,
commercial place of work. This is necessary for example, if the place of work is
actually situated in a different country and evaluations therefore have to be carried
out in the appropriate national currency and in accordance with other tax and legal
specifications.
If you want to manage the accounting for several independent companies
simultaneously, you can set up several company codes in one client. You must set
up at least one company code in each client.
Integration
If you use other components of the SAP System, you have to make assignments
between the company code as the central organizational unit of Financial
Accounting, and the organizational units of the other components. This is
necessary to ensure that data can be transferred between the components.
Copy an existing company code.
Address data is required for correspondence and is recorded on evaluation
reports.
Currency Accounts are managed in the company code currency. Other
currencies are interpreted as foreign. The system translates the amounts
posted in a foreign currency into the company code currency (local
currency).
Language key
Country key This is important for business or payment transactions, since
different forms are required for foreign payment transactions.
In addition to the company code there are further important organizational units in
Financial Accounting. These are optional:
Separate reporting
Separate financial statement
Other important organizational units in Financial Accounting:
The controlling area is the most important organizational element in Controlling. A
self-contained organizational structure for which costs and revenues can be
managed and allocated. More than one company code can be assigned to one or
more controlling areas. Assigning more than one company code to the same
controlling area is possible only if all the assigned company codes use the same
operating chart of accounts and have the same fiscal year variant.
Other important org. units
Business area Represent separate areas of operation, can be used
cross-company codes
Profit Center
Evaluates the success of indipendent areas within a company. Internal analysis
of profits
Segment Business segments (IFRS)
Company
For consolidation functions. It can contain one or more company
codes
Functional area
In cost-of-sales accounting, operating
costs are sorted according to function
Controlling
Company Code 1 Company Code 2 Company Code 3
Chart of accounts
(+ Fiscal Year variant)
Controlling area (most important in controlling) identifies a self-contained organizational
structure, here cost and revenue can be managed and allocated. Represents a separate unit of
cost accounting.
More than one company code can be assigned to one or more controlling areas. This enables a
cross-company code cost accounting between the assigned company codes. It is possible if all the
assigned company codes use the same operating chart of accounts and have the same fiscal year
variant. However, as there are important relationships between financial and management
accounting we will also regard this area as a whole. (Reporting purposes).
BASIC SETTINGS IN GENERAL LEDGER ACCOUNTING
Define which elements separates reports are necessary
G/L accounting (new) enables to use of parallel valuations approaches/parallel accounting
through the use of different ledgers
Each client has exactly one leading ledger, while additional non-leading ledgers are used for other
requirements. The main ledger reflects the accounting principle used to draw up consolidated
financial statements. It is integrated with all subledgers and is updated in all company codes.
Leading ledger 0L, non-leading ledgers (parallel accounting). This is known as the
ledger approach in the new General Ledger, is not necessary to define an
additional ledger per company code, a non-leading ledger is sufficient for the
purpose.
You have the option of defining a different fiscal year in non-leading ledgers. Only
the values from the leading ledger are posted to CO in the standard system. The
accounts approach, different valuation approaches and valuations are posted to
different accounts.
Accounts approach Vs. Ledger approach
You cannot define your own scenarios. The scenarios provided are assigned to
the ledgers in Customizing. A ledger (always the leading ledger) can be assigned
one or more scenarios, or even all six at once. You do not need a ledger for each
scenario!
Account Approach
Leading Approach
-No specific account area -No change to chart of accounts
-Minimum one retained earnings acc. for ALL GAAP
-Standard Financial Statement definition
-Relevance of posting for Local or Int. GAAP specified at the acc. level
-ONLY the leading valuation can be posted to CO
-Specific accounts groups -Complex chart accounts
structure
-Minimum one retained earnings acc. for EACH GAAP -Complex financial statement
definition
-Relevance of posting for Local or Int. GAAP specified
at the acc. level
-ALL valuation approaches can be posted to CO
VARIANT PRINCIPLE
Three step method used in SAP system to assign particular properties to one or more objects . The
main advantage is that it is easier to maintain properties which are common among several
business objects.
The variant principle is used for:
Field status
Posting periods
Fiscal year
()
The main advantage for using variants is that it is easier to maintain properties
which are common among several business objects. You define the fiscal year as
a variant that is assigned to the company code. The fiscal year variant contains the
Scenarios
Cost Center Update
-Update os sender cost and receiver cost center fields
Preparation for Consolidation
-Update for consolidation tx type & trading partner fields
Business Area
-Update of trading partner business area and reciever
business area fields
Profit Center Update
-Update of profit center and partner profit center fields
Segment Reporting
-Update of segment, partner
segment and profit center fields
Cost of Sales Accounting
-Update of partner business area and receiver functional
area field
Define
Determinine Values
Assign to the objects
definition of posting periods and special periods. In total, you can define 16
periods.
FISCAL YEAR
To assign business transactions to different periods, is necessary define a fiscal
year with posting periods. Define as a variant assigned to a company code.
Fiscal year variant contains the definition of POSTING PERIODS and SPECIAL
PERIODS, this ones (special periods) are used for postings that NOT assigned to
time periods but to the business process of YEAR-END-CLOSING. (In total you
can define until 16 periods).
The system derives the posting period from the posting date. If the posting date
falls within the last normal posting period, you can post the transaction in one of
the special periods.
The fiscal year variant does not specify whether a period is open or closed (this data is managed in another table). FY variant only defines the number of periods and their start and finishes dates.
CURRENCIES
Currency Key: need to be assigned. Use International standard currency keys
(USD, JPY,GBP, MXN etc.) Each currency key can have a validity date.
For every combination of two currencies, can be maintain different exchange rates
which are distinguished by an exchange rate type. Then, use different exchanges
rates for different purposes, such a validation, conversion, translation and planning.
Exchange rate types:
Fiscal Year
Year Indipendent
The number starts and end dates for the periods are the
same for every year
Calendar Year: Posting periods are equal to the months of the year (12
posting periods)
Non-Calendar Year: posting periods by assigning end
dates to each periods. (1-16 postin periods) If not start on 1st January must has +1 or-1
indicator
Year Specific/Dependent
Periods can be vary from year to year
Conditions: a)Start/end of posting periods are different dates between one year and
other. b) Some FY use a different number of posting
periods.
Shortended FY: One fiscal year of a fiscal year variant has less
periods than the others. Is assigned a lower number of
posting periods. It need to be defined and number of
postinmg periods beofre be defined period dates.
Historical rate
Bank selling rate
Bank buying rate
Average rate
The rate on certain key dates
The relationship between currencies must be maintained per exchange rate type
and currency pair using translation ratios (usually has to be performed only
once). Since inflation can deeply influence the relationships between currencies,
translations ratios are maintained on a time period basis.
Is possible reduce the amount of work involved in the maintenance of exchange
rates by using one of the following TOOLS:
Base currency
Exchange rates spreads
Inversion
Exchange rate spreads between the bank buying/selling rate and average rate
usually remain constant. If the exchange rate spread of an exchange rate type is
entered in the system, only is necessary maintain the average rate since buying
and the selling rate can be derived by adding/subtracting the exchange rate spread
to/from the average rate.
(Combination of base currency and exchange rate spreads). Efficient combination
of the exchange rate tools is:
Using base currency for the average rate
Using the exchange rate spreads to calculate the buying and selling rates
The exchange rate is defined or communicated using the direct or indirect method
of quotation depends of the market standard or the individual business transaction.
The use of indirect quotation is neither application nor country-specific(it affects all
the components in which exchange rates are used).
Worklists for Maintaining Exchange rates
Maintenance for exchange rate table with several employees, problems can be
occur:
Maintain incorrect exchange rates (unknowingly or unintentionally)
Maintain the exchanges rates with the incorrect quotation (indirect instead
direct or vice versa)
The table is very large, maintaining is very time-consuming (scrolling is
necessary)
Table TCURR cannot be maintained by more than one user simultaneously
Advantages using Tx TCURMNT to define workilsts and maintain the exchanges
rates>
Only relevant exchanges can be maintained. (Option to assign
authorizations for worklists)
Only the relevant quotation can be maintained
Direct: One unit of foreign currency is
quoted for the local currency
1USD = 1.2663 EUR
Indirect: One unit of the local currency is
quoted for the foreign currency
1EUR = 0.7897 USD
Local: EUR Foreign: USD
The worklists is smaller and therefore clearer
Parallel processing of different worklists is possible
Additionally, maintenance can be do it with two prefixes, that can be used to
differentiate between direct and indirect quotation exchange rates during input and
display. If you do not enter the standard setting is valid:
(blank, without prefix) Direct quotation exchange rates
/ Indirect quotation exchange rates
MASTER DATA
GENERAL LEDGER ACCOUNTS
The chart of accounts is a variant that contains the structure and the basic
information about General Ledger accounts. It is defined with a four character-
ID, also is defined the individual components of the chart of account (language,
length of G/L account number, group chart of accounts, status). The chart of
Scenarios
Standard Setting:Works mainly with direct quotation
and rarely use indirect.
" " Direct
"/" Indirect
Alternative prefix for both: increasingly use
direct quotation as well direct quotation
"*" Direct
"/" Indirect
Indirect quotation is the most widely used
notation
"*" Direct
" " Indirect
accounts must be assigned to every company code for which accounts are to be
set up based on the structure concerned.
Chart of accounts: to create chart of accounts, consider the same steps as
the variant creation
Definition
Maintenance languages is in which account descriptions are maintained.
The length of the G/L account numbers can be between 1 to 10 numbers.
Via integration G/L accounts and cost types, it is possible control to what extent the
cost master record is maintained when do this in G/L account master records of
P/L statement accounts. It could be manually or automatically . You can maintain
cost types manually, however, you also have the option of maintaining them
automatically. When you save a new G/L account, the corresponding cost type is
created automatically. The prerequisite however, is that a default value for the cost
element category is defined for this cost element, since if no default value exists,
the system assumes that no cost element is to be created.
Once is assigned a group account number for each G/L account, it supports to
use for cross-company code reporting if the company uses a different chart of
Define Chart of accounts (+ Define
properties)
Contains: -Chart of accounts Key -Description
General Inf.: -Maintenance Language -Length of the G/L acc. number
CO integration: -Manual or automatic creation of cost elements
Consolidation: -Group chart of acc.
Status: -"Blocked" Indicator
Assign to company codes
Which company code with which chart of accounts.
accounts. If you enter a group of chart of accounts number in the corresponding
field in the G/L account definition (required field entry) and checks whether the
group account number entered exists in the group chart of account. When chart of
accounts is not completed can be blocked so that no company code can use it
until it is ready. You can get a directory of the G/L accounts in your chart of
accounts for information or for documentation purposes
Assigning
Every company code must have a chart off accounts assigned to it. One chart of
accounts can be assigned to several company codes (variant principle).
Controlling component uses the same Financial Account component, in case to
cross-company code controlling, use the same chart of accounts.
Chart of accounts segment
The chart of accounts contains basic information about the accounts, it is
summarized in a chart of accounts segment. Contains:
Account number
Name of the account (short/long text)
Control fields
Consolidation fields
If the chart of accounts has not been translated into the appropriate logon
language, the account name appears in the maintenance language.
Information entered in the chart of account segment for G/L account applies to all
company codes. (information entered once). Texts entered for the chart of
accounts segment is managed by text ID and language. Use key words to search
account numbers.
Is possible define and change the layout of the tab tables for individual processing
of the G/L account master data, define:
Number of tab pages
Title of tab pages
The field groups that you require and their position on the tab pages
Select layouts for central processing, and processing in the chart of
accounts and company code-specific area. (You can copy these
layouts, adjust them to meet your requirements, and then assign them to
your chart of accounts or your account groups.)
Chart of accounts segment
(Groups of Fields)
Type/Description -Control in Chart of
accounts -Description
-Consolidation data in chart of accounts
Key word/Transaltion
-Keywords in chart of accounts
-Translation
Information -Information in chart of
accounts -G/L texts in chart of
accounts
Company code segment
To use one of the accounts from the assigned chart of accounts in your company
code, you must create a company code segment for the account. This company
code segment is added to the chart of accounts segment, and together they form
the account. Contains information to refers exclusively to company code
concerned.
The company code segment for the same G/L account can be different depending
on the requirements of the company code. To define the information that is
relevant to each company code:
Currency
Taxes
Reconciliation account
Line item display
Sort key
Field status group
House bank
Interest calculation information
Company Code segment (Several
groups of fields)
Control Data: -Account Control
-Account Management -Joint Venture
Bank/Interest: -Documentation
Creation -Bank/Financial
Details -Interest Calculation
Information: -Information
-G/L Account texts
Texts are managed by text ID and language.
One Chart of Accounts, Several Company Codes
Every company code that wants to use an account from the assigned chart of
accounts has to create it is own company code segment. Because the number
and name of the account is maintained in the chart of accounts, the account has
the same name and number in all assigned company codes.
Balance sheet and P&L Statements Accounts
In the chart of accounts segment, is necessary to specify whether the account is a
balance sheet or a P/L statement account.
Two types of accounts that are treated differently in the closing procedure
1. For balance sheet accounts, the balance is carry out forward to the same
account
2. For P/L statement accounts, the balance is carried forward to a retained
earnings account and the P/L statement account is set to zero. A key is
assigned to the account to which balance is carried forward. (Enter the key
in the field P&L statement type in the chart of accounts segment)
In customizing, users define the retained earnings account that is assigned to
expense accounts during G/L account master record creation. If there is only one
retained earnings account, the system automatically uses the one defined in
customizing. If there is more than one retained earnings account, when you create
a master record, you can select the retained earnings account for each P&L
statement account.
Account groups for G/L accounts
Since a chart of accounts contains many different types of accounts, they can be
grouped into different account groups. Usually, one account group groups
accounts with the same tasks within the G/L. By assigning a number of range to
an account group, it can ensure that accounts of the same type are within the
same number range. Number intervals go G/L account master records can overlap.
At the moment to enter the account group in the chart of accounts segment, it
controls the appearance of the company code segment of a G/L account. In
customizing, for your Cash Accounts account group, change the field status to
make line item display a required entry. (SAP ERP delivers predefined account
groups).
Field Status
It enables to you to control the display and maintenance of an accounts master
data:
Certain fields are grouped together and their field status is valid for the entire
group. The fields Account currency and Field status group are ALWAYS
required entry fields, this status cannot be changed. For fields which are supressed
may contain values, and these values still take effect.
Field Status for Master Data
Hide
Fields that are not used
Display Fields whose values must
not be changed
Required
Fields where must be enter value
Optional Fields that can contain an
entry, but are not required
The field displayed in the general ledger account master record are not only
controlled by the account group, but also by the transaction that you are using to
edit the master data (transaction-specific control). If have not the certain fields to
be modifiable after the creation of master record, specify that a particular field is
not modifiable in the Change Master Data transaction in customizing assigning
the status Display to the relevant field.
For each field, the field status definitions from account group and the transaction
are taken into consideration and the one with higher priority is used.
Fields that are accessed with the transaction Display Master Data are always
either displayed or hidden since you cannot make an entry in a display
transaction. If is not wished to use the transaction-specific control, set the field
status for all fields to optional. Since this field status has the lowest priority, the
account group specific control is always used.
Reconciliation Accounts
Are general ledger accounts assigned to the business partner master records to
record all transactions in the subledger. All posting to the subledger accounts are
automatically posted to the assigned reconciliation accounts. The general ledger is
always up to date.
To define a G/L account as reconciliation account by entering one of the following
account types in the field Reconciliation account for account type:
Accounts Receivable (D)
Accounts Payable (K)
The reconciliation account is then ONLY valid for the account type specified.
Typical reconciliation accounts are the accounts receivables and payables.
Amounts cannot be posted directly to reconciliation accounts
Line Item Display
Is a control field in the company code segment of an account.
Transaction figures are the totals of line item postings on the debit or credit side.
The balance is the difference between the debit and the credit transaction figure.
Since the line item display takes up additional system resources, you should only
use it if there is no other way of looking at the line items. Not activate Line Item
Display for:
Reconciliation accounts: line items are managed in the subledgers
Revenue accounts: line items are managed by the Sales Order
Management application
Material stock accounts: line items are managed by purchasing
management application
Tax accounts: tax items are only useful in connection with the document;
the tax amounts were already checked when the document was posted
All necessary information is in subledgers. In New General Ledger accounting, the
statement regarding the control of line item management in the account refers only
to the entry view of documents. The active new general ledger accounting has an
Entry view and a General ledger view for a document. In general ledger view,
the line items on all accounts are always visible.
Open Item Management
Items in accounts with open item management are specified as OPEN or
CLEARED. Accounts with open item management must have line item display
activated.
Open item management is a prerequisite if is necessary check whether there is an
offsetting posting for a given transaction. It is possible display open and cleared
items separately, and therefore it is easy to see which business transactions still
need to be cleared.
Open Item management should be used for the following accounts:
Accounts with: -The most important data from the posted line items is sorted in special index table -This data is also sorted in the documents, it is redundant and nedds additional storage and system time -To looks this account online, is possible view the balance and individual line items
Accounts without:
-Only the transaction figures are updated when a document is posted to this account. -To look this account online , only is possible view the balance
Bank clearing account
Clearing accounts for goods receipt/invoice receipt
Salary clearing accounts
Is possible to activate or deactivate open item management if the account has zero
balance.
Account in Local currency
As standard, the local currency is proposed as the account currency when is
created a G/L account. For account currency there are two options:
1. Local currency
2. Foreign currency
If the account currency is the local currency, the account can be posted to in any
currency. The other currencies are converted into the local currency for each line
item.
Only balances in local currency
If the indicator Only balances in local currency is selected in the master data
record, transaction figures are only managed for amounts converted into local
currency.
The indicator must be set in cash discount and GR/IR clearing accounts. The
indicator is usually set in balance sheet accounts that are not managed in foreign
currencies and not managed on an open item basis.
Account in foreign currency
Accounts with a foreign currency as account currency can only be posted to in this
foreign currency.
Create Manually
With the two step method, creation of chart of accounts segment separately
from the company code segment. This allows to create the G/L account only in
the chart of accounts segment or in multiple company code segments.
Use the one-step method to create the G/L account in specified company code.
Repeat step 2 of the two-step method, that is, creation in the company code
segment, to create the G/L account in additional company code as needed.
Create G/L accounts by copying
To create an account that has the same properties as an existing account,
that is, another cash account, create the new account with reference to the
existing account and change the account name accordingly.
If all of the G/L accounts in an existing company code are required in
another company code, you can copy the entire company code segment to
the new company code.
You can also copy the entire chart of accounts to a new chart of accounts,
including the account determination. Is possible, also copy the financial
statement version
Data Transfer
To reduce data entry, programs (RFBISA00, Batch input interfaces for G/L
acc. Master data) can be modified to transfer new chart of accounts.
Collective Processing
Collective processing functions for G/L account master records. The system
allows to change at the same time master data in:
Manually
One Step: Create both segments simultaneously (centrally)
Two Step: -Chart of accounts Segment
-Company Code Segment
Copying
Copying an individual G/L acc. w/reference to other G/L acc.
Copy the entire Company Code Segment
Copy the entire chart of accounts segment
Data Transfer
Transfer a new chart of accounts from an external system
Chart of accounts segment
Company code segment
Description (such names of several G/L accounts)
For internal purposes, cross company code reporting may be useful. It is not
problem if all company codes use the same chart of accounts. If some company
codes may have to use special chart of accounts because of legal requirements, is
necessary apply the following procedure for internal reporting:
Can use a group chart of accounts, it must contain all of the group of
accounts
The group chart of accounts must be assigned to each operational chart of
accounts. If this is done, the field Group account number in the chart of
accounts segment s of operational charts of accounts is a required entry
field
Must enter the group account number in the chart of accounts segment of
the operational account. Different accounts of one operational chart of
accounts can refer to the same group account.
Must use a financial statement version for the group chart of accounts
(Disadvantage: because the company codes uses different operational chart of
accounts, no inter-company code controlling can be performed)
Country Chart of Accounts
An alternative to using a group of chart of accounts is to use a country chart of
accounts, all company codes uses the same operational chart of accounts.
Company codes that nevertheless required a special chart of accounts for external
reporting have the following option:
A chart of accounts is assigned
The country chart of accounts number (alternative account number) is
entered in every company code segment. Every country chart of accounts
number can only be used once
Since all company codes post into the same operational chart of accounts, cross-
company code controlling is possible.
(Disadvantage: Accounting clerks who may be familiar with the country charts of
accounts first have to get used to using the operational chart of accounts)
PROFIT CENTER AND SEGMENT
Every company can define for itself which elements/objects can be used to create
the reporting (balance sheet/ P&L). The segment is often chosen as the element
here.
The segment field/characteristic is a new standard account assignment object in
order to create evaluations for objects/entities below the company code level.
The objective is to give a detailed look at the various business activities at (broad-
base) enterprise. segment reporting. Alternative account assignments already
used which are still available:
Profit Center
Business area
Profitability segment of CO-PA
User defined field
Segments can be used to meet the requirements of international principles
regarding segment reporting.
The business area or profit center objects can be used as alternatives. The
segment is provided in addition because the business area and/or profit center
were frequently used for other purposes in the past and thereby to meet other
requirements.
Derivation of a Segment
System enables save a segment in the master data of a profit center. The segment
is posted automatically when the profit center is posted to.
If the profit center does not have a segment, there is no segment account
assignment either. The standard method is to derive the segment from the profit
center. (Customers can also program solutions/derivations themselves.)
The segment is derived from the characteristic profit center because this already
exists in various SAP objects, and the characteristic segment is automatically
derived from this. Segments can only be derived automatically using profit centers.
If it is not possible to derive the characteristic Segment from a profit center master
record, other ways must be found of assigning a segment. Document splitting
provides the following options:
Manual entry
BAdI implementation (FAGL_DERIVE_SEGMENT)
Defining substitution rules
Standard account assignment.
CUSTOMER/VENDOR ACCOUNTS
These accounts have two segments as G/L accounts:
1. Client level, contains general data. This data can be accessed throughout
the whole organization.
2. Segment at company code level, contains company code-specific data.
Any company code that wishes to do business with specific customer or
vendor has to create a company code segment for this customer or vendor.
This also creates a customer or vendor account.
Because the sales and distribution department also stay in contact with a customer
and has to know specific data about this customer, a sales area segment can be
created for each customer. Any sales area that wants to do business with a
customer has to create a sales area segment first. The sales area segment
contains sales area-specific data.
The Materials Management point of view of the vendor account, just as there is a
sales area segment for customers, and purchasing organization segment for
vendors. Any purchasing organization that wants to do business with a vendor has
to create a purchasing organization segment first, it contains purchasing
organization-specific data.
Usually the sales area segment must at least be created for the sales area
assigned to the company code. The account number is assigned to the
customer/vendor at client level. This ensure that the account number for a
customer/vendor is the same for all company codes and sales area.
Usually at least the purchasing organization segment for purchasing organization
assigned to the company code must be created.
Centralized Vs. Decentralized Maintenance
The system offers two separate functions for maintaining customer/vendor master
records depending on the requirements of the organization. These data records
can be maintained centrally for all areas or separately for financial accounting
and Materials Management., sales and distribution (customer case).
Complete Customer Account
General data in a client level
Company code segment
Sales area segment
Complete Vendor Account
General data in a client level
Company code segment
Purchasing organization segment
Compare Master Data
It is easier to create customer/vendor master records centrally to ensure that they
are set up correctly. In some cases Purchasing Management/Sales Order
Management create their own segments of the master record and accounting
creates its own segments of master record, in this case there is the risk of creating
incomplete or duplicate master records. To prevent the creation of duplicate
accounts as follows:
Use the match code before create a new account
Activate the automatic duplication check
Pages of the customer/vendor account
Important fields
Search terms: enter an abbreviation for the customer/vendor name in these
fields. The format is defined by company guidelines and practices
Group: Customer or vendors who belong to the same corporate group can
be bundled together under a user-defined group key. This group key can be
used for running reports, transaction processing, or for matchcodes.
Clerk/accounting: the name of the accounting clerk must be saved under
an ID. You can also use this ID for sorting dunning and payment proposal
lists.
Explanatory texts can be entered in every segment. Line item display and open
item management are configured as standard for every customer/vendor account.
As a recommendation, you create a reference account for every account group.
Account groups
When is created a customer/vendor master records, enter de account group on the
initial screen. In Financial Accounting, once the customer/vendor account has been
created, you can no longer change the account group. The account groups
controls:
Each account segment consists of several pages with different groups of fields
General Data -Adress
-Control data
-Payment transactions + texts
Company Data -Acc. information
-Payment transactions
-Correspondence
-insurance
-withholding tax + texts
In Status of the fields in the Master Record the account group is used to control the
fields displayed in the master record.
Controlling the field status
The layout of customer/vendor master data screens can be affected by several
factors:
Account group-specific control: field status is usually controlled only by
the account group. All accounts of one account group have the same screen
layout.
Transaction-dependent control: field status can be dependent on the
master data transaction (create, change or display). The transaction-
dependent field status should be set to display for the change transaction
if the field is not to be changed after it has been created.
Company code-dependent control: control the field status for fields in the
company code segment of customer/vendor master records via the
company code-specific screen layout. Hide fields that are not used in
specific company code, but enter values in these fields in other company
codes.
The account group-specific status, transaction specific-field status and company
code-specific field status are compared and the field status with the highest priority
is used.
Divided into smaller number ranges (it must not overlap)
Internal: assigned by the system
External: entered by the user who creates the record (alphanumeric)
Each number ranges can be assigned to one or more account groups
Number ranges
The account group is used to control the fields displayed in the master record
Status of the fields in master records
Created for rarely business with customer/vendor
Contains receivables and payables for one-time
It doesnot contain any specific information
It should be hidden fields
Entered in the document during posting
One time customer/vendor account (Normal
Account)
Dual control principle
It define that one person makes changes to customer/vendor master data while
another person is responsible for confirming the changes, usually for critical
changes. If it is define a field in the customer/vendor master record as sensitive,
the corresponding customer/vendor is blocked for payment if the entry is changed.
The block is removed when a second person with authorization check the change
and confirms or rejects it.
The confirmation for the changes can be made for a single customer/vendor or
using a list. It can be restricted by:
Customer/vendor
Company code
Accounts not yet confirmed
Accounts rejected
Accounts to be confirmed by me
Display the changes to the customer or vendor master record for all
accounts (reports RFDABL00 or RFKABL00)
Customer/Vendor Clearing
If a customer is also a vendor or vice versa, the payment and the dunning program
can clear open items against each other. The open items of the assigned
account can also be displayed in the line item display and the open item selection
screens. To clear open items, follow the steps:
Enter de vendor account number in the customer account and vice versa
Each company code can decide separately whether it wants to clear open
items between customers and vendors. If clearing is to be used, select
Clearing with vendor field in customer account or corresponding field in
vendor account.
Alternative Payer/Payee
At the client and company code level, you can enter an alternative payer/payee.
The entry in the company code segment has higher priority than the entry at client
level. If you set the Individual Entries indicator when creating an invoice, you can
enter information about an individual payer/payee for a customer/vendor that has
not been created in mySAP ERP. If the alternative payer/payee is an existing
customer or vendor, you can enter the customer/vendor account number as
permitted payee/payer in the master record.
Head Office/Branch
Customer in some industries place orders locally, but pay invoices centrally, there
is a difference between the goods flow and cash flow. All items posted to a branch
account automatically transferred to the head office account. Usually dunning
notices go to the head office and it is the head office that make and receives
payments. If the Decentralized processing field is selected in the head office
master record, the dunning and payment programs use the branch accounts
instead.
DOCUMENT CONTROL
DOCUMENT STRUCTURE
Document principle, a document is saved for every posting. The document
remains as a complete unit in the system until it is archived. Every document is
uniquely identified by the following fields:
Document number
Company code
Fiscal year
Each document contain the following:
Document header, information that applies to entire document
Between 2 and 999 line items (information that is specific to the line
item). When you post documents via the AC interface (for example, from
Sales Order Management, Purchasing Management, or other applications),
it creates items in the accounting document that are identical in almost all of
the fields.
Is possible display detailed data for the document header and line items. Two
important control keys:
Document type for the document header
Posting Key for the line items
The SAP system generates at least one document for every business transaction.
The system can assign the document numbers or the user can assign the number
when entering the document.
Related documents are linked in the system so that you have an overview of every
business transaction in the system.
Document type
Controls the document header and is used to differentiate the business
transactions to be posted. Documents types are defined at client level and are
therefore valid for all company codes. The standard system is delivered with
document types that can be changed or copied.
Document types define the following:
Number ranges for document numbers
Account types permitted for postings
Document types also define the following:
The field status of the document header text and reference number
fields in the document header
Whether invoices are posted with the net procedure
If the original document has an external number:
Enter the external number of the original document in the Reference Number
field in the header of the system document
Note the number of the system document in the original document
Document type AB allows postings to all account types. To transfer billing
documents from the SAP ERP billing system, you need one of the following
document types:
RV, the default document type for Sales Order Management billing documents
(customer invoices).
RE, the default document type for Materials Management billing documents
(vendor invoices).
When internal number assignment is used, the system assigns a new number to
each document in the Financial Accounting component. In external number
assignment, the system transfers the billing document number to the accounting
document, providing this number has not already been assigned.
Document number ranges
Defines the range of numbers that must be assigned as document numbers. It
must not overlap.
General Documents
(AB)
Customer Invoices (DR)
Customer Credit Memos
(DG)
Customer Payments (DZ)
GL Acc. Postings (SA)
Vendor Invoices (KR)
Vendor Credit Memos (KG)
Vendor Payments (KZ)
Vendor net invoices and
credit memos (KN)
Internal numbering: The system saves the last document number that was
taken from the number range in the current number field and assigns the
number following the current number as the text document number.
External numbering: The user enters the number of the original document,
or the number is transferred automatically from another system. The number
is usually not assigned in sequence, which is why the system cannot store a
current number. It can be alphanumeric.
The document number range must be defined for the year in which it is used.
There are two options:
1. Fiscal Year in the Future: at the beginning of a new fiscal year, the system
continues to use the number after the current number as the next number. It
does not restart at the first number of number range.
2. To Every Fiscal Year: at the beginning of a new fiscal year, the system
starts again with the first number of the number range. This helps to ensure
that the number range is sufficient.
In new General Ledger Accounting, different ledgers can use different fiscal year
variants. This is a very rare case. It is then necessary to make special settings for
these ledgers in Customizing:
Document number ranges are stored for the general ledger view.
The number ranges are assigned to the document types for the general ledger
view.
Internal number assignment must be set for these number ranges. One number
range can be assigned to several document types.
Functions of Posting Key
The posting key has control functions within the line items. It controls:
To which type of account the line item can be posted to
If the item is posted as a debit or credit
The field status of additional details
Like document types, posting keys are also defined at client level. In addition to
control functions, posting key also specifies:
Whether the line item is connected to a payment transaction. This
information is required for analysing the payment history and creating
payment notices
Whether the posting is sales-relevant and the sales figure of the account is
to be updated by the transaction
In the standard transactions, posting keys are labeled debit and credit. The
following default values:
For GL account posting: Debit is posting key 40, credit is posting key
50.
For customer invoices: Debit is posting key 01, credit is posting key 50.
For customer invoices: Debit is posting key 31, credit is posting key 40.
Document Field status
At the moment to enter documents, different fields are displayed depending on the
transaction and the accounts used. What information is displayed when a
document is processed is controlled by the field status.
As general rule, define the account-dependent field status for general ledger
accounts in customizing. For customer and vendor data, define the posting key-
dependent field status in customizing according the requirements.
Exceptions
If business areas are used, the business are field must be ready for input.
You can activate it by enabling business area financial statements for the
company code. You can only use the field status to define whether the field
is a required or an optional entry field.
Entries in tax fields are only possible if the general ledger account is
relevant for tax.
The hide field status cannot be combined with the required entry field status.
This combination causes an error.
Field Status Group
For each group of general ledger accounts, is necessary define the status of every
document entry. When documents are entered for these G/L accounts, should the
text field be required, optional or hidden??
This information is divided into field status groups for each group G/L accounts.
Is assigned field status groups to the respective general ledger accounts in the G/L
account master records. The field status group are summarized in one field status
variant. The field status variant is assigned to your company code(s). No posting
can be made until this is complete. If a document is posted to a subledger account,
the field status group of the reconciliation account is used.
Standard Posting Keys
By changing the field status definition posting keys and the field status group, you
can make the field status transaction-dependent or account-dependent.
Since the subledger accounts do not have a field status group, postings are
differentiated mainly by means to different posting keys. For this reason, there are
numerous posting keys for subledger accounts.
Mandatory fields are also controlled centrally for document splitting objects (such
as the segment or profit center) when document splitting is used.
Postings to G/L accounts are mainly differentiated by means of different field status
groups. Therefore, only two posting keys are required for G/L account postings.
POSTING PERIODS
Posting periods are defined in the fiscal year variant. To prevent documents from
being posted to an incorrect posting period, as advise close certain posting
periods. Usually the current posting period is open and all other periods are closed.
At the end of a period this period is usually closed and the next period is opened.
Open a posting period by entering a range in the posting period variant that
compasses this period.
During period closing, open special periods for closing postings. During closing,
two periods intervals must be open at the same time. Therefore, two periods
intervals can be entered in the posting period table.
Posting Period Variant
Several company codes can use the same posting period variant. For all company
codes assigned, the posting periods are opened and closed simultaneously. This
simplifies the period maintenance.
Periods check by account type
In the document header, the periods assigned to the account type+ are checked.
This is the first check. Therefore the account type + must be open for all periods
that are supposed to be open for any other account type. The posting period
variant must contain at least the account type +. If the posting periods for
different account types are all to be handled in the same way, the control by means
of the + entry is sufficient.
Posting periods can be handled differently for different account types; that is, for a
certain posting period, postings to customer accounts may be permitted while
postings to vendor accounts may not.
At the line item level, the system check the account type of the posting key to
ensure that the period is open for the assigned account type.
The account interval always contains G/L accounts. By entering certain
reconciliation accounts behind subledger account types, these subledger accounts
can be treated differently to accounts that have different reconciliation account.
During closing, two periods intervals must be open at the same time. An
authorization group may be assigned to the first period interval. Then, only users
belonging to this authorization group have the permission to post in the first period
interval. It makes sense to use the first range for the special periods and authorize
only the accountants involved in closing to post in the special periods.
A third period interval is possible. In this interval, open periods are stored for real-
time integration CO FI really should be able to be posted in the periods. If the
third period is not filled, the entries in intervals 1 and 2 are also valid for these
postings.
With the new General Ledger Accounting, there is also the option to control more
precisely which values for which individual account assignment objects can be
posted, and when.
Determination of posting periods during posting
When entering a document, among other items, enter the posting date, the system
automatically determines the posting period and fiscal year based on the posting
date entered.
In the document overview the posting date, posting period and fiscal year are
displayed. The posting period determine is entered in the document and the
transaction figures for this posting period is updated. If display the balance of an
account, the transactions figures for the posting periods are displayed.
POSTING AUTHORIZATIONS
The upper limits for posting transactions within tolerance groups.
The maximum amounts are defined per company code in tolerance groups. This
is also where the processing of payment differences is controlled.
Maximum amounts
Upper limits for posting transactions within tolerance groups. Is possible enter the
following:
Total amount per document
Amount per customer/vendor item
Cash discount a user with this tolerance group is able to grant
(Local currency of the company code).
Assigning posting authorizations
Is possible to create many tolerance groups, every user can be explicitly assigned
to a tolerance group. For any employees who have especially high or low limits, a
special tolerance group be created and assigned to their user logon IDs.
SIMPLE DOCUMENTS IN FINANCIAL ACCOUNTING
The SAP Financials Accounting component uses one posting transactions for
several different postings. Header and Item data, also the entry screen contains an
information area where is displayed the balance.
Enjoy Posting Screen
The easy to use ENJOY transactions. You can define a document type for each
transaction, which then appears as a general default value. You can overwrite this
proposed document type at any time as long as the document type field is ready
for input during document entry. Via the button Tree, you can access screen
variants, account assignment templates, and held document that you can select as
templates.
G/L acc. postings
Customer invoices
and credit memos posting
SIMPLE POSTINGS
Vendor invoices
and credit memos posting
You can select from Park, Post, or Hold, to complete the document entry
transaction once the balance is zero. For complex postings you can access the
complex posting transaction via the menu. You cannot return to the initial screen
from this complex posting transaction. You can enter an explanatory text for the
line item. This item text can be used internally and externally.
POSTING CONTROL
DOCUMENT SPLITTING
Is only for customers who have to or want to enter further characteristic (such as
segment) on the balance sheet, in addition to company code.
A financial accounting document ALWAYS has two views:
Data entry view: view of how a document appears to the document
creator and therefore how it is shown in the subledgers
General ledger view: view of how a document appears only in the
general ledger
Besides the leading ledger, may also see the document in other, non-leading
ledgers in the general ledger view.
Displaying a document in the entry view and general ledger view is defined in the
new G/L accounting an cannot be switched on or off using customizing. New G/L
accounting offers the following aspects for balance sheet analysis below the
company code level.
Displaying P&L statement by profit center, business area or segment is never
problematic, since the positions which have an effect are always provided with
unique corresponding objects by the original controlling object. If a balance sheet is
created for one of these objects, the problem is that line items cannot be split in the
entry view. This only happens in the general ledger view, using document splitting.
The entities defined as splitting characteristics (balancing characteristics) are
inherited in non-account-assigned posting lines. Document splitting (also called
online split) ensures that companies can create complete balance sheets for
desired objects. If document splitting is not activated, there is usually no difference
between the entry view and G/L view.
Document splitting is activated in customizing. Since document splitting can be
activated for each client and deactivated for each company code, the decision of
whether to split the document or not is made at company code level. All company
codes of a client can only use one document splitting procedure, that is, different
procedures cannot be assigned to different company codes.
Inheritance If an account assignment object is unique in a document, it is
inherited online in all missing positions.
Default acc. asisgnment
It is possible to work with default acc. assignment, that is, if the position is not provided with necessary object for any reason then a default value can be set automatically
Document splitting process
Document splitting can be activated subsequently by migrating existing data. The
document splitting settings generally cannot be changed after this.
Standard splitting characteristics
Always set the Zero balance indicator if you want to create a financial statement for
the characteristic.
Business area
Profit Center
Segment
(User-defined characteristics can also be used for document splitting)
Document splitting characteristics determine which objects document splitting is
used for (where to divide/balance)
The mandatory field indicator has two meanings:
1. It is an extension of the field status for accounts in which characteristics
cannot be entered during document entry, and/or for accounts that cannot
be controlled using the field status.
2. It is a check as to whether a business process-equivalent business
transaction variant was selected (which determines whether a splitting rule
can be found)
The mandatory field indicator works in addition to field status control in the account
or in the posting key.
Pas
sive
Sp
lit
During clearing, the entities of the document being cleared are copied to the clearing document without being change
Act
ive
Split
For documents which do not show clearing, individual distribution rules can be created in customizing to decide which positions of a document are divided according to which basic positions. The document type is the basis for the rule C
reat
ing
clea
rin
g lin
es/
zero
b
alan
ce f
orm
atio
n
Is always used if, in addition to the total document, the objects to be balanced within the document should be balanced to zero
A splitting procedure, defined in brief, is the total of all splitting rules of all business
transactions. As such, the splitting procedure defines how and under which
circumstances document splits will be performed. In detail, it means each splitting
procedure defines how each item category will be handled in the individual
business transactions.
DEFAULT VALUES
Parameter IDs allow users to set default values for fields whose values does not
change very often, when is executed the transaction, these values appear in the
corresponding fields automatically. Therefore, is not necessary enter values
manually and can prevent input errors. Using the editing options, configure the
screens for the followings areas:
Receipt entry: users can hide fields that may not be relevant for their jobs,
such as foreign currency or cross company code transactions. Can also use
special editing options for the single screen transactiosn
Document display: using the List Viewer, the user can select different
display options for displaying documents
Open items: users can choose line layout displays and postings options for
processing open items, in other words, they can enter the amount of a
partial payment or the balance of the new open item.
Defines which itmes categories can/should be split (item categories ti be processed) and at the same time defines which foundation (case) can be used (based item categories)
Is the semantic description for the document split. Technical map of the posted line items. Describes the items that appear within a document
is a specific version of the predifined business transactions provide by SAP and the (technical) modeling of a real business process for document splitting
Is a general breakdown of the actual business porcesses that sap provides and is assigned a wide variety of item categories
BUSINESS TRANSACTION
BUSINESS TRANSACTION
VARIANT
INDIVIDUAL SPLITTING RULE
ITEM CATEGORY
When users log on to the SAP ERP system, their user ID has specific properties
that apply to it throughout the system: logon language, date format, and decimal
notation. Users can also set a default printer for themselves.
System and Accounting Defaults
The system provides you with basic default values for document entry. The system
proposes the company code that you entered in the last document. The system
works on the basis of the Document Principle: All documents must balance
before they can be posted to.
At company code level, enter the maximum difference permitted between the
exchange rate in the document header of a business transaction and the exchange
rate in the exchange rate table.
CHANGE CONTROL
Changing documents
Users can change documents that have already posted, based on different rules,
only certain fields can be changed. These rules can either be predefined by the
system or be user-specific.
Certain fields in both the document header and the line items can be changed.
Document header: Only the reference number and document header text
can be changed
Line items: the system does not allow changes to the amount, the posting
key, the account, or any others fields that would affect the reconciliation of a
posting
As users make changes to documents, the following information is logged:
The field that was changed
The new and old values
The user who made the change
The time and date of the change
Differentiation between document change rules according to the following criteria:
Acc. Type: allows users to define rules for customer, vendor and G/L
accounts
Transaction class: are only used for the special G/L transactions bill of
exchange and down payment
Company code: if the field is blank, the rules applies to every company
code
The CONDITIONS for changing a field predefined:
The posting period is still open
The line item is not yet cleared
The line item is either a debit in a customer account or a credit in vendor
account
The document is not a credit memo for an invoice
The document is not a credit memo from a down payment
DOCUMENT REVERSAL
Once in a while, a document is entered and posted incorrectly. It must be reversed
and re-entered correctly. Users can make errors when they enter documents. As a
result, the document created contains incorrect information. In order to log the
adjustments, the incorrect document must first be reversed. The document can
then be re-entered correctly.
The system provides a function to reverse G/L, customer, and vendor documents,
both individually or in a mass reversal. A document can be reversed by:
a) Normal reversal posting: causes the system to post the incorrect debit as
a credit or vice versa. It causes an additional increase in the transaction
figures.
b) Negative posting: also post the incorrect debit as a credit and vice versa.
This time the posted amount is not added to the transaction figures, but is
subtracted from the transaction figures of the other side of the account. This
sets the transaction figures back to as they were before incorrect posting
took place.
When you reverse a document, you have to enter a reversal reason that explains
the reversal. The reversal reason also controls whether the reversal date is allowed
to be different to the original posting date. Documents with cleared items cannot be
reversed. The document must first be reset.
The normal reversal posting causes the system to post the incorrect debit as a
credit and the incorrect credit as a debit. The negative posting also posts the
incorrect debit as a credit and the incorrect credit as a debit. Is subtracted from the
transaction figures of the other side of the account.
Normally the system uses the normal reversal posting to reverse documents. The
following prerequisites must be fulfilled to enable negative postings:
The company code permits negative postings
The reversal reason must be defined for negative reversal
Negative posting can also be used to perform transfer postings of incorrect line
items. The item is removed from the wrong account by a negative posting
(resetting the transaction figures) and posted to the correct account by a normal
posting. This can only be done with a document type that explicitly allows negative
postings.
When is applied a reverse a document, enter a reversal reason that explains the
reversal. The reversal reason also controls whether the reversal date is allowed to
be different to the original posting date.
Documents with cleared items cannot be reversed, the document must first be
reset.
PAYMENT TERMS AND CASH DISCOUNTS
Terms of payment are conditions agreed between business parameters for the
payment of invoices. The conditions define the due date and the cash discount
offered for payment of the invoice within a certain period.
Some terms of payment are predefined in the system; is possible add news if it is
necessary.
Terms of payment enable the system to calculate a cash discount and invoice
due date. In order to this, the system needs the following data:
Baseline date: the date from which the due date is derived
Cash discount terms: the terms which the cash discount can be taken
Cash discount percentage rate: the percentage rate used to calculate
cash discount
When a document is process, enter the terms of payment so that the system can
calculate the required conditions of payment. If you have entered terms of payment
in the master record, these are proposed. You can also enter or change them
during processing.
Is possible enter terms of payment in the company code segment, sales area
segment, purchasing organization segment of a customer/vendor master record.
Invoice related credit memos
Credit memos can be linked to the original invoice by entering the invoice number
in the invoice reference field during invoice entry. In this case, the terms of
payment are copied from the invoice so that the invoice and the credit memo are
due on the same date
Other credit memos
Terms of payment in other credit memos are invalid. These credit memos are
due on the base line date. To activate the payment terms on these non-
invoice related credit memos.
Payment Control
A block key and payment method, defined in terms of payment are defaulted in the
line item when the terms of payment are used.
Using block keys, which can be entered in line items or accounts, can block
line items or accounts for payment or collection. These block keys can also
be entered in payment terms
A payment method (for each country, the system has payment methods
defined that you can use in that country) is entered in the line items or the
accounts. Like payment blocks, payment methods can be entered in the
terms of payment.
Baseline Date
Is the starting date the system uses to calculate the invoice due date. The following
rules apply for the calculation of the baseline date:
Gen
eral
The DAY LIMIT is the calendar day to which the terms of payment are valid. It allows store single or multi-part termsof payment in a terms of payment key The DESCRIPTION for terms of payment includes the following elements: an
explanation generated automatically by the system which can be replaced by user explanation of the terms of payments and a Sales Order Management text for
printing on invoices
The Account type defines the subledger in wich terms of payment can be used.
The default values from which the baseline date can be determined are as
follows: no default, document date, posting date or entry date
Specifications for calculating the baseline date: fixed day used to overwrite
the calendar day of the baseline date.
The number of month(s) to be added to the calendar month of the baseline month.
Cash discount
To calculate the cash discount, enter a percentage rate in the terms of payment,
also enter the number of days that the percentage is valid for in the same line. You
can also add fixed days and months. Also, system allows enter up three cash
discount periods.
Discount percentage rates
Discount periods
The days and months specified in the terms of payment are used in conjunction
with the baseline date to calculate the correct cash discount amount for the
payment date. Enter up to three cash discount periods.
Day limits
It enables date-specific terms of payment in one terms of payment key. Is possible
define several versions of terms of payment, with each version having a different
day limit.
The day limit is the baseline date up to which the payment term version applies.
For terms of payment that are dependent, allows to enter two-part terms of
payment under the same terms of payment key. The entry for specified day limit is
added to the terms of payment key. This results in two entries where different
terms of payment can be defined. The following terms of payment REQUIRE the
specification of a day limit:
Documents with invoice date up to the 15th of the month are payable on the
last day of following month
Documents with later invoice date are payable on the 15th of the month after
Instalment Payment
An invoice can be paid over several months using an instalment plant, or a portion
of the invoice amount may be retained for payment at later date. The total invoice
amount is divided into partial amounts due on different dates.
The system carries out this split automatically if instalment payment is defined in
the terms of payment. Consider:
Instalment number
Percentage
Payment terms for instalments
The percentage rates specified must total 100%. The system creates a line item for
each installment specified.
The line item amounts correspond to the percentages of the total amount. The total
of the line item amounts corresponds to the total amount. The terms of payment for
the line items are the terms of payment defined for the individual instalments.
Cash discount base amount
Depending on the international regulations of each country, the cash discount base
amount is the net value or gross value. For each company code or tax jurisdiction
code, specify which value the system is to use as cash discount base- this setting
belongs to the global parameters of a company code.
Posting cash discount
Gross procedure
The cash discount amount is entered either manually or automatically by the
system using the rates in the terms of payment. You can still change the cash
discount after you post the invoice. When an open item on a customer or vendor
account is cleared, the possible cash discount is posted automatically to an
account for cash discount expense or cash discount received. Define the
accounts for cash discount expense or cash discount revenue in the configuration.
Net Procedure
The amount posted to expense or balance sheet account is reduced by the cash
discount amount. The same amount is also posted to a cash discount clearing
account to clear the posting. When is used the net procedure, the cash discount
amount is automatically posted when the invoice is posted.
When you use the net procedure, the cash discount amount is automatically
posted when the invoice is posted. When the invoice is paid, the system carries
out a clearing posting to the cash discount clearing account. If the invoice is paid
after the cash discount deadline, the cash discount loss is posted to a separate
account. The cash discount clearing account must be managed on an open item
basis.
TAXES
When posting an invoice SAP allows for taxes to be levied on the invoice amount
as:
Tax on sales/purchase
US sales tax
Additional taxes (country-specific)
Withholding tax
Two taxation types are possible:
1. Federal/country level, with uniformly defined rates
2. State/jurisdictional level, with rates defined by the state or jurisdiction
In some countries taxes are even levied in both levels
The expense or revenue mount is the base amount is the base amount, which can
include a cash discount (tax base is gross) or exclude a cash discount (tax base is
net). Tax code is used for the calculation procedure required to perform taxation
functions on the SAP system.
National regulations determine whether the tax base amount must be:
Net amount: taxable expense or revenue items minus cash discount
Tax Support
Provides support for
Calculate tax amounts
Posting to defined tax
accounts
Performing tax
adjustments Tax reporting
Calculates tax amounts from
Base amounts with or
without a cash discount
Tax codes to check or
calculate the tax amount
Gross amount: taxable expense or revenue items including cash discount
User can define which amount is to be used for each company ode or for
the highest level of the jurisdiction code.
Tax on Sales and Purchases
The output tax is levied on the net value of the goods and is billed to the
customer. It is a liability of the company to the tax authorities.
Input tax is levied on the net invoice amount and is billed by the vendor. The input
tax is a receivable which the company claims from the tax authority. The tax liability
minus deductible input tax is the tax payable. Tax authorities can define that part of
the input tax is not deductible. This tax amount can be posted to a separate
expense account
Tax calculation procedure
For carrying out tax calculations is assigned to every country.
Condition types are tax calculations that are valid for the country. The base amount
is an expense or revenue item.
Jurisdiction key/code
A jurisdiction code is a combination of codes of tax authorities that tax movements
of goods and use their own tax rates. There are four possible levels below national
level:
1. State
2. County
3. City
4. District
Tax calculation procedures contain:
THE ORDER OF STEPS: which have taken in the tax calculation procedure (the "from step" indicates where the system calls the base of value for "step")
TAX TYPES (CONDITION TYPE): apply for the country. The system is delivered w/consition types necessary for ech type of taxcalculation
ACCOUNT KEY / TRANSACTION KEY: covers additional specification and is used for the automatic auccount determination for the taxes concerned
The tax jurisdiction codes must be defined on every level. You can enter the taxes
per jurisdiction code or per tax level.
Using tax jurisdiction codes involves two steps:
a) Define the length of the individual elements of the code for the format of the
jurisdiction code. This activity also automatically switches over tax
processing for this tax jurisdiction code method
b) The tax jurisdiction codes must be defined on every level
When are post taxes with jurisdiction code, it allows enter the taxes per jurisdiction
code or per tax level.
Tax code
Verify the amount of tax
Calculate the amount of tax
Calculate additional tax portion
Verify the tax type
Determine de G/L account
Show tax correctly on tax forms
Enter a the tax code when post the document and this is the main connection to
the tax calculation. This connection is different depending on whether the country
uses tax calculation procedure with tax jurisdiction codes or not . Tax code is linked
with either of the following
Country key
Combination of country key and tax jurisdiction code
The tax codes with a jurisdictional taxation method are date-specific. In the
configuration, choose whether the document date or the posting date is valid
for the tax calculation.
Tax rates
It are assigned to the tax types used in the tax calculation procedure. A tax code
may have several tax rates entered for different tax types (if a line item is to be
taxed with several tax types), but usually one tax rate is entered.
Some posting to tax-relevant G/L accounts must have a tax rate of zero. This
applies to:
Items that are tax-exempt but have to be reported to tax authorities. For
these items a special tax code with a tax rate of zero is created.
Items that are created by tax exempt transactions such as goods issue,
goods movement, and so on. A special tax code must be assigned to these
transactions in configuration.
The tax type definition determines if the base amount is percentage included or
percentage separate.
If the system detects a deviation between the tax calculated and the tax amount
entered, it either issues an error message (check indicator set) or a warning
message (check indicator not set).
Tax Postings
The taxes calculated by the system are usually posted via a separate line item to
a special tax account. This is the standard scenario.
Taxes with certain transaction/account keys (for example, NVV) are distributed to
the relevant expense/revenue item. This is the case for sales tax payables or other
non-deductible input taxes.
Tax account determination
To enable to automatic tax account determination, it has assigned the following
data to the account/transaction keys that generate the tax item during posting:
Posting keys
Rules that determine which fields the account determination is based on
(tax code or account key)
Tax accounts
When exchange rate differences occur because of tax adjustments in foreign
currencies, these exchange rate differences are usually posted to the normal
TAX POSTINGS
Standard Scenario: The taxes calculated by the system are usually posted via a
separate line item to a special tax account.
Taxes with certain transaction/account keys are distributed to the relevant expense/revenue item. (Sales tax
payables or other non-deductible input taxes)
account for exchange rate differences. The resulting differences are posted to a
special account.
Tax accounts
Means accounts to which tax items are posted, in the field tax category by
entering one of the following signs:
< for input tax
> for output tax
The properties of the tax code define whether or not the tax posted is an
input or output tax
Post automatically only option must be selected if it does not want to post tax
manually.
Other G/L Accounts
If the Postings Without Tax Allowed field is selected, you can post to this G/L
account without specifying a tax code. This is especially necessary for tax postings
within a jurisdiction code tax calculation procedure to foreign customers who do not
have a jurisdiction code.
Accounts for cash discounts need an entry in the Tax category field if the system is
supposed to post tax adjustments
Special Tax Codes
The acquisition tax code generates two posting items: it posts the acquisition tax
to credit side of the acquisition output tax account and the same amount to