FI Config NewGL

Last changed on: Last changed by: FI Team Version: 0 Page: Date:07

th May ‘05 Page 1 of 231

Version No : 1.0

Date : 07.05.2005

Financial Accounting

Customization Document

Consultant - SAP Core Team Member Signature

Pankaj Gupta

Sibichan Thomas

Ajay – Project Manager SAP – Project Manager Videocon



1. General Settings

1.1. SAP NetWeaver� General Settings

Config-ID and Title: General Settings for FI

Organization/Area: FI

ERP Responsible: FI Team

File Name: FI Configuration Document - Mission Excellence.doc

Responsibility: FI Team Status: Open / Closed

Header Details

Description: General Settings

Transaction Code: SPRO

Menu Path: IMG � SAP NetWeaver� General Settings � Set Country-specific checks

Client dependent settings: Yes / No

Active Settings:

In this step, the standard settings are retained for the country IN along with the Regions and Currency settings including the exchange rate types. You also specify the country specific checks that are to be carried out for all transactions and in Master data. This has been set up as below:



2. Enterprise Structure

2.1. Enterprise Structure � Definition � Financial Accounting

Enterprise Structure � Assignment � Financial Accounting Config-ID and Title: Maintain Enterprise Structure for FI





Header Details

Description: Maintain Enterprise Structure


Menu Path: IMG � Enterprise Structure � Definition � Financial Accounting� Define Company

IMG � Enterprise Structure � Assignment � Financial Accounting� Assign Company code to Company


Active Settings: Company has been defined as VIDC - Videocon International Limited to which all the 5 company codes are

assigned.

2.2. Enterprise Structure�Definition�Financial Accounting�Define Credit Control Area

Config-ID and Title: Define Credit Control Area





Header Details

Description: Define Credit Control Area


Menu Path: IMG � Enterprise Structure � Definition � Financial Accounting �Define Credit Control Area


Active Settings:

The Credit Control Area is an organizational unit that specifies and checks a credit limit for customers. A credit control area can include one or more company codes. It is not possible to assign a company code to more than one control area. Within a credit control area, the credit limits must be specified in the same currency Remarks:



The credit control areas are defined based on the divisions that are relevant to the marketing operations.



2.3. Enterprise Structure�Definition�Financial Accounting�Edit , Copy Delete, Check Company Code

Config-ID and Title: Define Company Code





Header Details

Description: Define Company Code


Menu Path: IMG � Enterprise Structure � Definition � Financial Accounting � Edit , Copy Delete, Check Company Code


Active Settings: The company code is an organizational unit used in accounting. It is used to structure the business organization from a financial accounting perspective Remarks: SAP recommends single company codes at legal entity level. However, considering the specific reporting requirements of Videocon and the independent functioning of certain operations, Videocon International Ltd (the legal entity VIL) has been configured under three Company codes namely: 1000 Videocon Manufacturing Co (VMFG) 1100 Videocon Marketing Co (VMKT) 1200 Videocon Narmada Glass Co (VVNG) Other Company codes created are: 1500 Videocon Appliances Ltd 1800 Videocon Communications



2.4. Enterprise Structure �Definition �Financial accounting �Define Business Area

Config-ID and Title: Define Business Area





Header Details

Description: Define Business Area


Menu Path: IMG � Enterprise Structure � Definition � Financial Accounting � Define Business Area


Active Settings: A business area is an organizational unit within accounting that represents a separate area of operations or responsibilities in a business organization. Analysis of financial statements is possible at the level of Business area provided all the transactions are assigned to the business areas. Remarks: List of Business Areas defined for the Company VIL is below. Combination of product and branch formed the basis to determine the Business areas that numbered 1072 as of go-live date. Listing is contained in the link file given below.

C:\Documents and Settings\i029638\Desktop\List of Business Area.doc



2.5. Enterprise Structure �Definition�Financial Accounting � Maintain Financial Management Area

Config-ID and Title: Maintain Financial Management Area





Header Details

Description: Maintain Financial Management Area


Menu Path: IMG � Enterprise Structure � Definition � Financial Accounting � Maintain Financial Management Area


Active Settings:

The financial management area is an organizational unit within accounting which structures the business organization from the perspective of Cash Budget Management and Funds Management

Remarks:

No FM Area has been created for VIL



2.6. Enterprise Structure � Assignment � Assign company code to Credit Control Area

Config-ID and Title: Assign company code to Credit Control Area





Header Details

Description: Assign company code to Credit Control Area


Menu Path: IMG � Enterprise Structure � Definition � Financial Accounting � Assign company code to Credit Control Area


Active Settings:

In this step Company code is assigned to Credit Control Area. As no single credit control area can be assigned to the company codes, the system has been configured to take modifications to the credit control area field during document input. Credit control areas are assigned to each customer at the sales area master.



2.7. Enterprise Structure � Assignment � Assign company code to Financial Management Area

Config-ID and Title: Assign company code to Financial Management Area





Header Details

Description: Assign company code to Financial Management Area


Menu Path: IMG � Enterprise Structure � Definition � Financial Accounting � Assign company code to Financial Management Area


Active Settings:

In the step the company code is assigned the Financial Management Area.

Remark

No Assignment is made to the company codes as the FM has not been activated.



3. Financial Accounting Basic Settings (New) 3.1. Financial Accounting (New)� Financial Accounting Basic Settings (New)

3.1.1. Financial Accounting (New)� Financial Accounting Basic Settings (New) � Ledgers

Config-ID and Title: New Ledgers





Header Details

Description: New Ledgers


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Ledgers


Active Settings:

Ledger 0L is the leading ledger that will reflect all the entries based on the default fiscal year variant V3. In addition, further ledgers have been created to enable analysis of results on a cycle (4 weeks) or on a weekly basis and for the accounting year of Oct to Sept.

All ledgers have been assigned only INR as the currency for posting. No additional currencies have been assigned. The ledger settings are given below with varying fiscal year variants assigned to each. Fiscal year variant W2 represents 13 cycles of 4 weeks each; W1 represents 52 weeks and V9 represents 12 calendar months from Oct – Sept. Scenarios for update are Cost center, Business area and Profit center areas.





Two ledger groups have been created namely 0L and Z3. Ledger group 0L has been assigned ledgers 0L, Z1 and Z2. Ledger Z3 has been assigned to ledger group Z3 to allow separate additional postings to that ledger group.



3.1.1.1. Financial Accounting (New)� Financial Accounting Basic Settings (New) � Ledgers � Fields �Define Field Status Variants

Config-ID and Title: Define Field Status Variants





Header Details

Description: Define Field Status Variants


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Ledgers� Fields �Define Field Status Variants


Active Settings:

In this activity you can define and edit field status variants and groups. You group several field status groups together in one field status variant. You assign the field status variants to a company code in the activity Assign Company Code to Field Status Variants . This allows you to work with the same field status

groups in any number of company codes.

You can also define and process field status groups. You must define a field status group in the company code-specific area of each G/L account. The field status group determines which fields are ready for input, which are required entry fields, and which are hidden during document entry. Bear in mind that additional account assignments (i.e. cost centers or orders) are only possible if data can be entered in the corresponding fields

Remarks:

Standard SAP Field Status Variant has been copied to create a new field status variant VCON (Field Status for VIL) for the all company codes. New groups have been added with Y and Z prefix to include certain fields

like Business area, Profit center mandatory. Refer to the html file for details.

"FSG details.HTM"



3.1.1.2. Financial Accounting (New)� Financial Accounting Basic Settings (New) � Ledgers � Assign Company Code to Field Status Variants

Config-ID and Title: Assign Company Code to Field Status Variants





Header Details

Description: Assign Company Code to Field Status Variants


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Ledgers� Assign Company Code to Field Status Variants


Active Settings:

In this activity you can define and edit field status variants and groups. You group several field status groups together in one field status variant. You assign the field status variants to a company code in the activity Assign Company Code to Field Status Variants. This allows you to work with the same field status

groups in any number of company codes.

You can also define and process field status groups. You must define a field status group in the company code-specific area of each G/L account. The field status group determines which fields are ready for input, which are required entry fields, and which are hidden during document entry. Bear in mind that additional account assignments (i.e. cost centers or orders) are only possible if data can be entered in the corresponding fields

Remarks:

Standard SAP Field Status Variant has been copied to create a new field status variant VCON (Field Status for VILL) for all company codes of VIL. The field Status Groups are as follows



3.1.1.3. Financial Accounting (New)� Financial Accounting Basic Settings (New) � Ledgers � Ledger�Define Currencies of Leading Ledger

Config-ID and Title: Define Currencies of Leading Ledger





Header Details

Description: Define Currencies of Leading Ledger


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Ledgers� Ledger�Define Currencies of Leading Ledger


Active Settings:

In the following steps define Currencies of Leading Ledger for each company code in financial accounting is defined

No additional local currencies is maintained since no requirement from VIL



3.1.1.4. Financial Accounting (New)� Financial Accounting Basic Settings (New) � Ledgers � Fiscal Year and posting periods� Maintain Fiscal Year Variant (Maintain Shortened Fisc. Year)

Config-ID and Title: Maintain Fiscal Year Variant (Maintain Shortened Fisc. Year)





Header Details

Description: Maintain Fiscal Year Variant (Maintain Shortened Fisc. Year)


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Ledgers� Fiscal Year and posting periods� Maintain Fiscal Year Variant (Maintain Shortened Fisc. Year)


Active Settings:

A fiscal year consists of several posting periods and if necessary, special periods that can be posted to after a temporary year-end closing.

You define how your fiscal year is set up in the SAP System by creating a fiscal year variant at client level. Each company code is assigned a fiscal year variant. Several company codes can use the same fiscal year variant.

In the Fiscal Year variant we can define the following areas

• how many posting periods a fiscal year has

• how many special periods you need

• how the system is to determine the posting periods when posting

Standard SAP Settings is taken into consideration for Fiscal Year Variant.



Additional fiscal year variants have been defined for assignment to the parallel ledgers Z1, Z2 and Z3. The settings for the fiscal year variants W1 and W2 are given below. They will be year dependent and as such will be defined at the start of each year. Variant V9 is a standard variant. Refer to the attached file for the details of the 52 weeks variant W1.

W2 represents 13 cycles in line with the periods followed by the marketing department.

"Fiscal year variant W1.HTM"





3.1.1.5. Financial Accounting (New)� Financial Accounting Basic Settings (New) � Ledgers � Fiscal Year and posting periods� Assign Company Code to a Fiscal Year Variant

Config-ID and Title: Assign Company Code to a Fiscal Year Variant





Header Details

Description: Assign Company Code to a Fiscal Year Variant


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Ledgers� Fiscal Year and posting periods� Assign Company Code to a Fiscal Year Variant


Active Settings:

Every Company code has to be assigned to Fiscal Year Variant. Remarks:

VIL Company Codes are assigned to the Fiscal year Variant V3 that corresponds to non calendar year and uses four additional Special Periods



3.1.1.6. Financial Accounting (New)� Financial Accounting Basic Settings

(New) � Ledgers � Fiscal Year and posting periods� Open and Close Posting Periods

Config-ID and Title: Open and Close Posting Periods





Header Details

Description: Open and Close Posting Periods


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Ledgers� Fiscal Year and posting periods� Open and Close Posting Periods


Active Settings:

Every Company code has to be assigned to Open and Close Posting Periods Variant. Remarks:

VIL Company Codes are assigned to the Open and Close Posting Periods Variants



3.1.1.7. Financial Accounting (New)� Financial Accounting Basic Settings (New) � Ledgers � Fiscal Year and posting periods� Open and Close Posting Periods� Define Variants for Open Posting Period

Config-ID and Title: Define Variants for Open Posting Period





Header Details

Description: Define Variants for Open Posting Period


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Ledgers� Fiscal Year and posting periods� Open and Close Posting Periods� Define Variants for Open Posting Period


Active Settings:

In this activity, you can define variants for open posting periods Remarks:

In the standard setting, a separate variant for posting periods is defined for every company code. The name of this variant is identical to the company code name. Every company code is allocated to this variant with the same name. Thus nothing has changed in the system yet: Every company code has its own variant Variants as below are created respective company for the Posting Period.

3.1.1.8. Financial Accounting (New)� Financial Accounting Basic Settings (New) � Ledgers � Fiscal Year and posting periods� Open and Close Posting Periods� Assign Variants to company code

Config-ID and Title: Assign Variants to company code





Header Details

Description: Assign Variants to company code


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Ledgers� Fiscal Year and posting periods� Open and Close Posting Periods� Assign Variants to company code


Active Settings:



In this activity you specify for each variant which posting periods are open for posting. Two intervals are available for doing this (period 1 and period 2). For every interval, enter a lower period limit, an upper period limit and the fiscal year.

You close periods by selecting the period specifications so that the periods to be closed are no longer contained.

Remarks:

Posting Period Variants and the Account type used are as Follows + Valid for all account types A Assets D Customers K Vendors M Materials S G/L accounts

Separate posting period variants have been created for each of the company codes. For example variant 1000 has been assigned to company code 1000 and variant 1100 has been assigned to company code 1100.

3.1.1.9. Financial Accounting (New)� Financial Accounting Basic Settings (New) � Ledgers � Real-time integration of Controlling with Financial Accounting

Real-time integration of Controlling with Financial Accounting has not been activated.



3.1.2. Financial Accounting (New)� Financial Accounting Basic Settings (New) � global parameters for Company Code 3.1.2.1. Financial Accounting (New)� Financial Accounting Basic Settings

(New) � global parameters for Company Code � Enter global parameters

Config-ID and Title: Enter global parameters





Header Details

Description: Enter global parameters


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � global parameters for Company Code � Enter global parameters


Active Settings:

In the following steps other structures and master records and control specification for each company code in Financial accounting is defined. Most Important, specification of the company code can be overviewed any point of time. This includes Chart of Accounts Fiscal year variant, FM Area, Field Status Variant, posting period Variant Etc. Remarks:






(New) � global parameters for Company Code � Tax settings�

Activate Extended Withholding Tax Config-ID and Title: Activate Extended Withholding Tax





Header Details

Description: Activate Extended Withholding Tax


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � global parameters for Company Code � Tax settings � Activate Extended Withholding Tax


Active Settings:

Extended With Holding Tax offers the following features.

• Withholding tax for accounts payable

• Withholding tax calculation during payment

• Withholding tax code per vendor line item

• Multiple withholding taxes per customer or vendor line item

• Withholding tax calculation for partial payments

• Enhancements in withholding tax calculation

• Withholding tax calculation during invoice entry and during payment

For the company VIL Extended withholding tax option is activated here in this customization.



3.1.3. Financial Accounting (New)� Financial Accounting Basic Settings (New)

� Documents

Config-ID and Title: Documents





Header Details

Description: Documents


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Documents


Active Settings:

In the following you make the relevant settings for documents.




(New) � Documents �Document types

Config-ID and Title: Document typs





Header Details

Description: Documents


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Documents�document types


Active Settings

In this IMG activity, you have to define for your leading ledger the document types for the documents. You do this in the entry view and assign at the same time a number range interval to the document types.

C:\Documents and Settings\i029638\Desktop\doc type list.doc

Document types have to be defined for each of the non-leading ledgers. These are required for the postings to be made into these ledgers for providing the general ledger view of the transactions. The document types are assigned to each of the non-leading ledgers with a separate number range for each one. For the sake of uniformity, the number ranges assigned have been retained similar to those defined for the entry view except in the case of external number ranges. For those document types that have external number ranges in the entry view, the same ranges have been maintained for the non-leading ledgers but with internal numbers defined for each.

"Doc types with number range Z1.HTM"





3.1.3.2. Financial Accounting (New)� Financial Accounting Basic Settings (New) � Documents � Number Ranges

Config-ID and Title: Number Ranges





Header Details

Description: Number Ranges


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Documents� Number Ranges


Active Settings:

A number range must be assigned to each document type in the SAP System. Via the document types, you distinguish the postings according to the different business transactions, for example customer payment, vendor credit memo, and so on. To store documents separately according to document types, you must assign a separate number range to each document type.

In the following activities:

• You define your document number ranges.

• You can determine which intervals of document number ranges are to be copied from one company code into another.

• You can determine which intervals of document number ranges are to be copied from one fiscal year into another.

In this activity you create number ranges for documents. For each number range you specify (among other things):

• a number interval from which document numbers are selected

• the type of number assignment (internal or external)

You assign one or more document types to each number range. The number range becomes effective via the document type specified in document entry and posting.

Number ranges X3 and X4 have been defined as External number ranges for assignment to the RE and RV document type postings respectively to originate from MM and SD modules respectively. This has been done to ensure that the accounting document in FI takes the same number as the documents generated for the invoice verification in MM and the billing document raised in SD.



Note:

All number ranges in FI are year dependent and therefore have to be maintained for each fiscal year before any entry is posted. These number ranges can be copied from one fiscal year to the other and across company codes.

It should be noted that separate number ranges are to be maintained for non-leading ledgers namely Z1, Z2 and Z3.

3.1.3.3. Financial Accounting (New)� Financial Accounting Basic Settings (New) � Documents � Define Posting Keys

Config-ID and Title: Define Posting Keys





Header Details

Description: Define Posting Keys


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Documents� Define Posting Keys

Client dep settings: Yes / No

Active Settings:

In this activity you define posting keys. Users specify a posting key before entering a line item. The posting key controls how the line item is entered and processed.

For each posting key, you define among other things:

• which side of an account can be posted to,

• which type of account can be posted to, and

• which fields the system displays on the entry screens and whether an entry must be made (field status).

Remarks: Standard SAP Defined Posting Keys are used for the Transaction processing. List of Posting Keys defined are as follows

C:\Documents and Settings\i029638\Desktop\Posting Key.doc



3.1.3.4. Financial Accounting (New)� Financial Accounting Basic Settings (New) � Documents � Rules for changing documents� Document Change Rules, Document Header

Config-ID and Title: Document Change Rules, Document

Header Organization/Area: FI




Header Details

Description: Document Change Rules, Document Header


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Documents� Rules for changing documents� Document Change Rules, Document Header


Active Settings:

In this activity, you determine under which circumstances fields within posted documents can be changed.

For a number of fields, the system itself determines that they can no longer be changed after posting. This includes all fields which are central to the principles of orderly accounting, for example, the amount posted and the account.

The system also prevents the update objects from being changed in documents which have already been posted, independent of the document change rules. Update objects are elements in the system for which transaction figures or line items are updated, for example, business area or cost centers (if cost center accounting is used in the SAP system). Update objects are entered as additional account assignments during posting.

Remark

For VIL no specific field are kept open



3.1.3.5. Financial Accounting (New)� Financial Accounting Basic Settings (New) � Documents � Rules for changing documents� Document Change Rules, Line Item

Config-ID and Title: Document Change Rules, Line Item





Header Details

Description: Document Change Rules, Line Item


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Documents� Rules for changing documents� Document Change Rules, Line item


Active Settings:

In this activity, you determine under which circumstances fields within posted documents can be changed.

For a number of fields, the system itself determines that they can no longer be changed after posting. This includes all fields which are central to the principles of orderly accounting, for example, the amount posted and the account.

The system also prevents the update objects from being changed in documents which have already been posted, independent of the document change rules. Update objects are elements in the system for which transaction figures or line items are updated, for example, business area or cost centers (if cost center accounting is used in the SAP system). Update objects are entered as additional account assignments during posting.

Remark



3.1.3.6. Financial Accounting (New)� Financial Accounting Basic Settings (New) � Documents � Tolerance Groups � Define Tolerance Groups for Employees

Config-ID and Title: Define Tolerance Groups for Employees





Header Details

Description: Define Tolerance Groups for Employees


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Documents� Tolerance Groups � Define Tolerance Groups for Employees


Active Settings:

In this activity, you predefine various amount limits for your employees with which you determine:

• the maximum document amount the employee is authorized to post

• the maximum amount the employee can enter as a line item in a customer or vendor account

• the maximum cash discount percentage the employee can grant in a line item

• the maximum acceptable tolerance for payment differences for the employee.

Payment differences are posted automatically within certain tolerance groups. This way the system can post the difference by correcting the cash discount or by posting to a separate expense or revenue account.

In this respect you define:

• the amounts or percentage rates up to which the system is to automatically post to a separate expense or revenue account if it is not possible to correct the cash discount or

• up to which difference amounts the system is to correct the cash discount. In this case the cash discount is automatically increased or decreased by the difference. using tolerance groups.

You can also additionally differentiate these settings by company code. Since the same rules usually apply to a group of employees, enter the values for employee groups. You can then enter amount limits and tolerances per employee group and company code.



Remarks: Standard Tolerance group defined by SAP is blank which is used for the company codes of VIL



3.1.3.7. Financial Accounting (New)� Financial Accounting Basic Settings (New) � Documents � Define Texts for Line Items

Config-ID and Title: Define Texts for Line Items





Header Details

Description: Define Texts for Line Items


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Documents� Define Texts for Line Items


Active Settings:

In this activity, you can store texts under keys which can be transferred to the line item. When entering a document, the key is entered in the text field.

Remarks: Transaction type details have been mentioned in the Text line Item. List of details are as follows





3.1.4. Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax 3.1.4.1. Financial Accounting (New)� Financial Accounting Basic Settings

(New) � Withholding Tax � Extended Withholding Tax Config-ID and Title: Extended Withholding Tax





Header Details

Description: Extended Withholding Tax


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax � Extended Withholding Tax


Active Settings:

In the following activities you make the basic settings for extended withholding tax.



3.1.4.2. Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax � Extended Withholding Tax � Basic Settings

Config-ID and Title: Basic Settings





Header Details

Description: Basic Settings


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax � Extended Withholding Tax� Basic Settings


Active Settings:

In the following activities you make the basic settings for extended withholding tax.



3.1.4.3. Financial Accounting (New)�� Financial Accounting Basic Settings (New) �� Withholding Tax �� Extended Withholding Tax �� Basic Settings�� Check Withholding Tax Countries

Config-ID and Title: Check Withholding Tax Countries





Header Details

Description: Check Withholding Tax Countries


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax � Extended Withholding Tax� Basic Settings� Check Withholding Tax Countries


Active Settings:

In this activity you check the withholding tax countries.

The withholding tax country is needed for printing the withholding tax form. Since the list of country IDs prescribed by law is different from the list in the system, you have to define the withholding tax countries again.

Remarks: Following settings is made.



3.1.4.4. Financial Accounting (New)�� Financial Accounting Basic Settings (New) �� Withholding Tax �� Extended Withholding Tax �� Basic Settings�� Define official Withholding Tax Codes

Config-ID and Title: Define official Withholding Tax Codes





Header Details

Description: Define official Withholding Tax Codes


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax � Extended Withholding Tax� Basic Settings� Define official Withholding Tax Codes


Active Settings: National Tax Authorities use official withholding tax keys to identify the different withholding tax types, you can define these official names for your tax codes here.

Remarks: Official Withholding Tax keys defined are as follows



3.1.4.5. Financial Accounting (New)�� Financial Accounting Basic Settings (New) �� Withholding Tax �� Extended Withholding Tax �� Basic Settings�� Check Recipient Types

Config-ID and Title: Check Recipient Types





Header Details

Description: Check Recipient Types


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax � Extended Withholding Tax� Basic Settings� Check Recipient Types


Active Settings:

The type of recipient categorizes the vendor, which is necessary for printing the withholding tax form.

Remarks: List of Recipient Types defined are as follows

C:\Documents and Settings\i029638\Desktop\With holding tax type.doc



3.1.4.6. Settings (New) �� Withholding Tax �� Extended Withholding Tax �� Basic Settings�� India �� Define Business Places

Config-ID and Title: Define Business Places for section code





Header Details

Description: Define Business Places for section code


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax � Extended Withholding Tax� Basic Settings� India � Define Business Places


Active Settings:

In this IMG activity, you define your business places. The use of business places is mandatory.

Remarks: All statutory registered TDS Business place for VIL have been created as Business place for the section code purpose. The list is as follows



3.1.4.7. Settings (New) �� Withholding Tax �� Extended Withholding Tax �� Basic Settings�� India �� Assign Factory Calendars for Business Places

Config-ID and Title: Assign Factory Calendars for Business Places





Header Details

Description: Assign Factory Calendars for Business Places


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax � Extended Withholding Tax� Basic Settings� India � Assign Factory Calendars for Business Places


Active Settings:

In this IMG activity, you effectively specify which days the tax offices that you work with are open. The system uses this information when you post a vendor invoice, so that it can allow for public holidays when it determines the tax due date.

This activity is optional. If you do not make any entries, the system still determines the tax due date, but without reference to any factory calendar.

Remarks: For the business places factory calendar is assigned with tax due date rule. Customization settings as follows



3.1.4.8. Settings (New) �� Withholding Tax �� Extended Withholding Tax �� Basic Settings�� India �� Maintain Tax Due Dates

Config-ID and Title: Maintain Tax Due Dates





Header Details

Description: Maintain Tax Due Dates


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax � Extended Withholding Tax� Basic Settings� India � Maintain Tax Due Dates


Active Settings: In this IMG activity, you maintain the various tax due dates. Because due dates can differ, depending on the withholding tax type and recipient type, you can maintain the dates at this level.

Remarks:



3.1.4.9. Settings (New) �� Withholding Tax �� Extended Withholding Tax �� Basic Settings�� South Korea �� Define Section Codes

Config-ID and Title: South Korea � Define Section Codes





Header Details

Description: Define Section Codes


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax � Extended Withholding Tax� Basic Settings� South Korea � Define Section Codes


Active Settings: For TDS purpose all the area offices are defined in the section codes. Moreover TAN no company address and other details are filled which is reflected in the TDS form while printing so when transaction is made this section code has to be filled in order to deduct TDS. The list that are defined are as follows



3.1.4.10. Settings (New) �� Withholding Tax �� Extended Withholding Tax �� Calculation

Config-ID and Title: Calculation





Header Details

Description: Calculation


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax � Extended Withholding Tax� Calculation


Active Settings:

In the following activities, you make the settings for calculating extended withholding tax.



3.1.4.11. Settings (New) �� Withholding Tax �� Extended Withholding Tax �� Calculation�� Withholding Tax Type

Config-ID and Title: Withholding Tax Type





Header Details

Description: Withholding Tax Type


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax � Extended Withholding Tax� Calculation� Withholding Tax Type


Active Settings:

The withholding tax type controls the essential calculation options for extended withholding tax, whilst the withholding tax code only controls the percentage rate of the withholding tax.

The system recognizes two categories of withholding tax type depending on when the withholding tax amounts are posted:

• Posting with invoice

• Posting with payment



3.1.4.12. Settings (New) �� Withholding Tax �� Extended Withholding Tax �� Calculation�� Withholding Tax Type�� Define Withholding Tax Type for Invoice Posting

Config-ID and Title: Define Withholding Tax Type for Invoice Posting





Header Details

Description: Define Withholding Tax Type for Invoice Posting


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax � Extended Withholding Tax� Calculation� Withholding Tax Type� Define Withholding Tax Type for Invoice Posting


Active Settings:

In this activity you define the withholding tax type for the posting at the time of entering an invoice. This withholding tax type does not have any effect on the payment.

Remarks: Details of the Customization setup for withholding tax type for invoice posting is as follows



3.1.4.13. Settings (New) �� Withholding Tax �� Extended Withholding Tax �� Calculation�� Withholding Tax Type�� Define Withholding Tax Type for Payment Posting

Config-ID and Title: Define Withholding Tax Type for Payment Posting





Header Details

Description: Define Withholding Tax Type for Payment Posting


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax � Extended Withholding Tax� Calculation� Withholding Tax Type� Define Withholding Tax Type for Payment Posting


Active Settings: In this activity you define the withholding tax type for posting at the time of paying. You also have to enter the withholding tax information when entering the document for this withholding tax type.

Remarks: Following codes have defined for payment posting with the following settings. They are as follows



3.1.4.14. Settings (New) �� Withholding Tax �� Extended Withholding Tax �� Calculation�� Withholding Tax Type�� Define Rounding Rule for Withholding Tax Type

Config-ID and Title: Define Rounding Rule for Withholding Tax Type





Header Details

Description: Define Rounding Rule for Withholding Tax Type


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax � Extended Withholding Tax� Calculation� Withholding Tax Type� Define Rounding Rule for Withholding Tax Type


Active Settings:

In this activity you define rounding rules for the individual withholding tax types.

The defined rounding rules only apply to the posting of withholding tax amounts in the appropriate company code; they do not apply to other amounts posted in that company code.

Withholding Tax types are rounded to unit 1. Details as follows



3.1.4.15. Settings (New) �� Withholding Tax �� Extended Withholding Tax �� Calculation�� Withholding Tax Type�� Assign Condition Type to Withholding Tax Type

Config-ID and Title: Assign Condition Type to Withholding Tax Type





Header Details

Description: Assign Condition Type to Withholding Tax Type


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax � Extended Withholding Tax� Calculation� Withholding Tax Type� Assign Condition Type to Withholding Tax Type


Active Settings:

In the following activities you make the settings for Assign Condition Type to Withholding Tax Type

You only need to carry out the following activity if you are implementing FI together with SD.

Withholding tax in FI is determined from the combination of withholding tax type and withholding tax code per customer/vendor. In contrast, the withholding tax in SD is determined from the combination of withholding tax condition type and withholding tax code per material. It is therefore necessary to assign the withholding tax types from FI to the withholding tax condition types from SD.

You can use the condition types in SD to represent the withholding tax per customer and per material item. When posting from SD to FI, the system then carries out the following conversions:

• The withholding tax condition type is converted into the withholding tax type.

• Material items with different combinations of withholding tax condition type and withholding tax code are converted to different customer items

Remark

Since Section code can not be assigned condition, presently there is a short coming in TCS challan preparation, maintain the Chelan number, printing certificate.



3.1.4.16. Settings (New) �� Withholding Tax �� Extended Withholding Tax �� Calculation�� Withholding Tax Codes

Config-ID and Title: Withholding Tax Codes





Header Details

Description: Withholding Tax Codes


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax � Extended Withholding Tax� Calculation� Withholding Tax Codes


Active Settings:

In the following activities you make the settings for the withholding tax code.

The withholding tax code determines the withholding tax percentage.



3.1.4.17. Settings (New) �� Withholding Tax �� Extended Withholding Tax �� Calculation�� Withholding Tax Codes �� Define Rounding Rule for Withholding Tax Type

Config-ID and Title: Define Withholding Tax Codes





Header Details

Description: Define Withholding Tax Codes


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax � Extended Withholding Tax� Calculation� Withholding Tax Codes � Define Withholding Tax Codes


Active Settings: For all the Tax codes % is defined. This is defined for both TDS and Surcharge

Remarks: The percentage rates defined for the codes are as follows



3.1.4.18. Settings (New) �� Withholding Tax �� Extended Withholding Tax �� Calculation �� Withholding Tax Codes �� Define formulas for Calculating Withholding Tax

Config-ID and Title: Define formulas for Calculating Withholding Tax





Header Details



Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax � Extended Withholding Tax� Calculation � Withholding Tax Codes � Define formulas for Calculating Withholding Tax


Active Settings:

In this activity you define formulas (scales) for calculating withholding tax.

These formulas consist of:

• Currency key

• Withholding tax type

• Withholding tax code

• Withholding tax country key

• Validity date

Remarks: Formula Method can be used for sec 194I Rent where up to Rs.120000 TDS should not be deducted and any amount above TDS has to be deducted.



3.1.4.19. Settings (New) �� Withholding Tax �� Extended Withholding Tax �� Calculation�� India �� Surcharges�� Maintain Surcharge Calculation Methods

Config-ID and Title: Maintain Surcharge Calculation Methods





Header Details

Description: Maintain Surcharge Calculation Methods


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax � Extended Withholding Tax� Calculation� India � Surcharges� Maintain Surcharge Calculation Methods


Active Settings:

In this IMG activity, you specify which method you want to use to handle surcharge taxes, according to whether you wish your business to show basic withholding tax and surcharges separately, or whether they can be combined. SAP R/3 offers you two choices:

• You can define tax codes that contain both the basic tax and the surcharge tax.

• You can define separate tax codes for basic tax and surcharge tax respectively.

For each company code, specify which method you want.

Remarks:

Surcharge Calculation Method Controls whether surcharge tax rates are maintained independently of basic withholding tax,.

1) Check box ticked: Separate tax types and tax codes for basic withholding tax and surcharge.

2) Check box not ticked: Combined tax types and tax code for basic withholding tax and surcharge.



3.1.4.20. Settings (New) �� Withholding Tax �� Extended Withholding Tax �� Calculation�� India �� Surcharges�� Maintain Surcharge Tax Codes (Separate Tax Codes)

Config-ID and Title: Maintain Surcharge Tax Codes (Separate Tax Codes)





Header Details

Description: Maintain Surcharge Tax Codes (Separate Tax Codes)


Menu Path:

IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax � Extended Withholding Tax� Calculation� India � Surcharges� Maintain Surcharge Tax Codes (Separate Tax Codes)


Active Settings: In this IMG activity, you maintain the tax codes that you want to use for surcharges.

You must only perform this activity if you have specified that you want to use a separate tax code for surcharges in the previous IMG activity (Maintain Surcharge Calculation Methods). Otherwise, use the next activity (Maintain Surcharge Rates).

Remarks: Since for VIL separate Tax Codes for Surcharge Tax Codes are maintained, this activity is mandatory



3.1.4.21. Settings (New) � Withholding Tax � Extended Withholding Tax � Calculation� India � Surcharges� Maintain Surcharge Rates (Surcharges Combined with Basic WH

Config-ID and Title: Maintain Surcharge Rates (Surcharges Combined with Basic WH





Header Details

Description: Maintain Surcharge Rates (Surcharges Combined with Basic WH


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax � Extended Withholding Tax� Calculation� India � Surcharges� Maintain Surcharge Rates (Surcharges Combined with Basic WH


Active Settings: In this IMG activity, you maintain the tax codes that you want to use for surcharges.

You must only perform this activity if you have specified that you want to use a separate tax code for surcharges in the previous IMG activity (Maintain Surcharge Calculation Methods). Otherwise, use the next activity (Maintain Surcharge Rates).

Remarks:

Since for VIL separate Tax Codes for Surcharge Tax Codes are maintained, this activity is not required.



3.1.4.22. Settings (New) � Withholding Tax � Extended Withholding Tax � Calculation� India � Exemption and deductions � Define Exemption Reasons

Config-ID and Title: Define Exemption Reasons





Header Details

Description: Define Exemption Reasons


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax � Extended Withholding Tax� Calculation� India � Exemption and deductions � Define Exemption Reasons


Active Settings:

In this and the following IMG activities, you define withholding tax codes that you use to post the following invoice items and payment items under Sections 194 A, 197, and 197 A of the Income Tax Act:

• Items subject to a reduced rate of withholding tax

• Items that are exempt from withholding tax

When you come to prepare a TDS return, the return shows how many rupees' worth of business you taxed at a reduced rate and how much was exempt from tax.

In this IMG activity, you create the following exemption reasons:

Reason Section Explanation Legal status

AC 194 A (3) (iii) Interest is less than INR 2,500 Legal person

BC 194 A (3) (i) Financial institutions Legal person

CC 197 A (1A) Exemption certificate holders Legal person

AO 194 A (3) (iii) Interest is less than INR 2,500 Natural person

BO 194 A (3) (i) Financial institutions Natural person

CO 197 (A1) Exemption certificate holders Natural person

Remark: No specific requirement from VIL



3.1.4.23. Settings (New) � Withholding Tax � Extended Withholding Tax

� Company Code � Assign withholding Tax Types to Company Codes

Config-ID and Title: Assign withholding Tax Types to Company Codes





Header Details

Description: Assign withholding Tax Types to Company Codes


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax � Extended Withholding Tax� Company Code � Assign withholding Tax Types to Company Codes


Active Settings:

In this activity you assign withholding tax type to company codes.

Remarks: All the withholding Tax types are assigned to the company codes. The List as follows



3.1.4.24. Settings (New) �� Withholding Tax �� Extended Withholding Tax �� Company Code �� Activate Extended Withholding Tax

Config-ID and Title: Activate Extended Withholding Tax





Header Details

Description: Activate Extended Withholding Tax


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax � Extended Withholding Tax� Company Code � Activate Extended Withholding Tax


Active Settings:

In this activity you activate extended withholding tax.

Extended withholding tax provides the following additional features

• Withholding tax for accounts payable

• Withholding tax calculation during payment

• Withholding tax code per vendor line item

• Multiple withholding taxes per customer or vendor line item

• Withholding tax calculation for partial payments

• Enhancements in withholding tax calculation

1. Withholding tax calculation during invoice entry and during payment



3.1.4.25. Settings (New) �� Withholding Tax �� Extended Withholding Tax �� Postings

Config-ID and Title: Postings





Header Details

Description: Postings


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax � Extended Withholding Tax� Postings


Active Settings: In the following activities you carry out the prerequisites for posting the extended withholding tax



3.1.4.26. Settings (New) �� Withholding Tax �� Extended Withholding Tax �� Postings�� Accounts for Withholding Tax

Config-ID and Title: Accounts for Withholding Tax





Header Details

Description: Accounts for Withholding Tax


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax � Extended Withholding Tax� Postings � Accounts for Withholding Tax


Active Settings: In the following activities you carry out the prerequisites for posting the extended withholding tax



3.1.4.27. Settings (New) �� Withholding Tax �� Extended Withholding Tax �� Postings 8 Accounts for Withholding Tax �� Define Accounts for Withholding Tax to be paid over

Config-ID and Title: Define Accounts for Withholding Tax to be paid over





Header Details



Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax � Extended Withholding Tax� Postings � Accounts for Withholding Tax � Define Accounts for Withholding Tax to be paid over


Active Settings: In this activity you define the accounts for the withholding tax to be paid over

Remarks: Codes created for both TDS and surcharge are assigned to the relevant G/L accounts. The details as follows



3.1.4.28. Settings (New) �� Withholding Tax �� Extended Withholding Tax �� Postings �� Accounts for Withholding Tax �� Define Accts for W/hold.Tax for "Gross.Up" Offsetting Entry

Config-ID and Title: Define Accts for W/hold.Tax for "Gross.Up" Offsetting Entry





Header Details

Description: Define Accts for W/hold.Tax for "Gross.Up" Offsetting Entry


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax � Extended Withholding Tax� Postings � Accounts for Withholding Tax � Define Accts for W/hold.Tax for "Gross.Up" Offsetting Entry


Active Settings: This activity you define the accounts for the offsetting entry for withholding tax. Tax codes are created with posting code is set to "2" ("grossing up"), the system automatically creates

two withholding tax line items with opposing debit/credit signs. The withholding tax amount is then increased by the factor 1/(1-p), where p is the withholding tax rate. You cannot choose this option if withholding tax scales apply.

Remarks: No requirement for grossing up the value for accounting the TDS and charging off the same to revenue account.



3.1.4.29. Settings (New) �� Withholding Tax �� Extended Withholding Tax �� Postings �� Accounts for Withholding Tax �� Define Accounts for Withholding Tax Offsetting Entry

Config-ID and Title: Define Accounts for Withholding Tax Offsetting Entry





Header Details

Description: Define Accounts for Withholding Tax Offsetting Entry


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax � Extended Withholding Tax� Postings � Accounts for Withholding Tax � Define Accounts for Withholding Tax Offsetting Entry


Active Settings: This activity you define the accounts for the offsetting entry for withholding tax. Tax codes are created with posting code set to "3", the system automatically creates two withholding tax items with opposing debit/credit signs.

Remarks:

Service tax liability where client required to arrive and remitted to government is defined with this functionality.

Separate GL for ECESS is maintained to avail VAT



3.1.4.30. Settings (New) �� Withholding Tax �� Extended Withholding Tax �� Postings �� India �� Remittance Challans�� Document Types �� Specify Document Type (Accounts Payable)

Config-ID and Title: Specify Document Type (Accounts Payable)





Header Details

Description: Specify Document Type (Accounts Payable)


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax �

Extended Withholding Tax� Postings � India � Remittance Challans� Document Types � Specify Document Type (Accounts Payable)


Active Settings:

In this IMG activity, you specify which document type the system uses when you create a remittance challan for tax that you have withheld from vendors.

This document transfers the tax from the withholding tax payable account to the bank account that you want to transfer the tax from.

Remarks:



3.1.4.31. Settings (New) �� Withholding Tax �� Extended Withholding Tax �� Postings �� India �� Remittance Challans�� Document Types �� Specify Document Type (Accounts Receivable)

Config-ID and Title: Specify Document Type (Accounts Receivable)





Header Details

Description: Specify Document Type (Accounts Receivable)


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax � Extended Withholding Tax� Postings � India � Remittance Challans� Document Types � Specify Document Type (Accounts Receivable)


Active Settings: Document type is specified Accounts Receivable Transaction

Remarks: Following document type is defined



3.1.4.32. Settings (New) �� Withholding Tax �� Extended Withholding Tax �� Postings 8 India 8 Remittance Challans �� Assign Number Ranges to Number Groups

Config-ID and Title: Assign Number Ranges to Number Groups





Header Details

Description: Assign Number Ranges to Number Groups


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax � Extended Withholding Tax� Postings � India � Remittance Challans � Assign Number Ranges to Number Groups


Active Settings:

In this and the following IMG activities, you set up the numbering for the remittance challans.

Since you must create one challan for the taxes in each section of the Income Tax Law (official withholding tax keys), and for separate tax offices (business place), you must create different number range objects for each permutation of official withholding tax key and business place.

Remarks: Number group is created and that is assigned the number ranges. The details as follows Use T.code SM30



3.1.4.33. Settings (New) � Withholding Tax � Extended Withholding Tax � Postings � India � Withholding tax certificates for vendors and customers � Maintain Number Groups and SAPscript Forms

Config-ID and Title: Maintain Number Groups and SAPscript Forms





Header Details

Description: Maintain Number Groups and SAPscript Forms


Menu Path: IMG � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Financial Accounting (New)� Financial Accounting Basic Settings (New) � Withholding Tax � Extended Withholding Tax� Posting � India � Withholding tax certificates for vendors and customers � Maintain Number Groups and SAPscript Forms


Active Settings:

In this IMG activity, you specify which SAPscript forms you want to use to print the withholding tax certificates. These forms are used when you:

• Print withholding tax certificates for vendors

• Print withholding tax certificates for customers

You have created the SAPscript forms already. You may need to use separate forms for each of your tax offices (business places) and different types of withholding tax (in the system, represented by the official withholding tax keys).

Country Version India comes with a form, J_1IEWTCERT, which you can use as the basis for creating your own forms.

For each type of withholding tax (official withholding tax key):

• Specify which SAPscript form you want to use

If different tax offices require different forms, you can enter different forms for different offices.

• Specify what number group you want for each certificate.

This information determines which number range the system uses to number the certificates. You assign the number range to the number group in the next two activities.



General Ledger Accounting



3.2. General Ledger accounting (New)� Master Data � GL Accounts

3.2.1. General Ledger accounting (New)� Master Data 3.2.1.1. General Ledger accounting (New)� Master Data � GL Accounts

Config-ID and Title: GL Accounts





Header Details

Description: GL Accounts


Menu Path: IMG � Financial Accounting (New)� General Ledger accounting (New Master Data � GL Accounts General Ledger accounting (New)� Master Data � GL Accounts.


Active Settings:

In the following activities you make the settings for General Ledger Accounting. These settings affect:

• G/L account creation

• G/L business transactions

• Information system

• Bank-related accounting



3.2.1.2. General Ledger accounting (New)� Master Data � GL Accounts� preparations� Edit Chart of Accounts List

Config-ID and Title: Edit Chart of Accounts List





Header Details

Description: Edit Chart of Accounts List


Menu Path: IMG � Financial Accounting (New)� General Ledger accounting (New Master Data � GL Accounts General Ledger accounting (New)� Master Data � GL Accounts� preparations� Edit Chart of Accounts List.


Active Settings:

In the chart of accounts list you enter the charts of accounts that you want to use in your organization (at client level).

Remarks: Chart of Account VCON is created with length of the G/L account number as 6 and with manual creation of cost elements



3.2.1.3. General Ledger accounting (New)� Master Data � GL Accounts� preparations� Define Account Group

Config-ID and Title: Define Account Group





Header Details

Description: Define Account Group


Menu Path: IMG � Financial Accounting (New)� General Ledger accounting (New Master Data � GL Accounts General Ledger accounting (New)� Master Data � GL Accounts� preparations� Define Account Group.


Active Settings:

When creating a G/L account, you must specify an account group.

The account group determines:

• the interval in which the account number must be

• which fields are required and optional entries when creating and changing master records

• which fields are suppressed when creating and changing master data.

It enables you to control the layout of screens.

Remarks: Account group is classified as Follows





3.2.1.4. General Ledger accounting (New)� Master Data � GL Accounts� preparations� Define Retained Earnings Account

Config-ID and Title: Define Retained Earnings Account





Header Details

Description: Define Retained Earnings Account


Menu Path: IMG � Financial Accounting (New)� General Ledger accounting (New Master Data � GL Accounts General Ledger accounting (New)� Master Data � GL Accounts� preparations� Define Retained Earnings Account


Active Settings:

You assign a retained earnings account to each P&L account by specifying a P&L statement account type in the chart of accounts area of each P&L account.

At the end of a fiscal year, the system carries forward the balance of the P&L account to the retained earnings account. You can define one or more P&L statement account types per chart of accounts and assign them to retained earnings accounts.

Remarks:



3.2.1.5. General Ledger accounting (New)� Master Data � GL Accounts� Define Financial Statement Versions

Config-ID and Title: Define Financial Statement Versions





Header Details

Description: Define Financial Statement Versions


Menu Path: IMG � Financial Accounting (New)� General Ledger accounting (New Master Data � GL Accounts General Ledger accounting (New)� Master Data � GL Accounts� Define Financial Statement Versions


Active Settings:

• You define the versions you need to create a balance sheet and profit and loss statement.

You can define versions for a specific chart of accounts, for a group chart of accounts, or without any specific assignment.

• You then determine the financial statement items for your version.

You assign groups of accounts to the items at the lowest levels of the hierarchy. You can select the criteria that determine which items the accounts are displayed in. For example, accounts or groups of accounts can be assigned to particular items based on their balance. Alternatively, you can also assign functional area intervals at the lowest level of the structure, instead of account intervals. Either account intervals or functional area intervals can be assigned to a financial statement item. You must explicitly define financial statement versions to which functional areas are assigned as such. You do this by setting the "Fun.area allowed" indicator. This financial statement version can then also be used by the notes to financial statement in the G/L account information system.

Remarks:



3.2.2. General Ledger accounting (New)� Business Transaction

Config-ID and Title: Business Transaction





Header Details

Description: Business Transaction


Menu Path: IMG � Financial Accounting (New)� General Ledger accounting (New Master Data � GL Accounts General Ledger accounting (New)� Business Transaction


Active Settings:

Several specifications are necessary for entering and posting accounting transactions in General Ledger accounting. You make these in the following activities.



3.2.2.1. General Ledger accounting (New)� Business Transaction� Document Splitting

Config-ID and Title: Document Splitting





Header Details

Description: Document Splitting


Menu Path: IMG � Financial Accounting (New)� General Ledger accounting (New Master Data � GL Accounts General Ledger accounting (New)� Business Transaction � Document Splitting


Active Settings:

You can use the document splitting procedure to split up line items for selected dimensions (such as receivable lines by profit center) or to effect a zero balance setting in the document for selected dimensions (such as segment). This generates additional clearing lines in the document. Using the document splitting procedure ensures that you can draw up complete financial statements for the selected dimensions at any time.

You can choose between displaying the document with the generated clearing lines either in its original form in the entry view or from the perspective of a ledger in the general ledger view.

For document splitting to be possible, the individual document items and the documents must be classified. Each classification corresponds to a rule in which it is specified how document splitting is to occur and for which line items. SAP delivers a set of standard rules that should usually prove sufficient. If not, you can define your own set of rules and adapt these according to your needs.

Remarks: For VIL is enabled and Business area is considered as lead segment



3.2.2.2. General Ledger accounting (New)� Business Transaction� Document Splitting� Classify G/L Accounts for Document Splitting

Config-ID and Title: Classify G/L Accounts for Document

Splitting





Header Details

Description: Classify G/L Accounts for Document Splitting


Menu Path: IMG � Financial Accounting (New)� General Ledger accounting (New Master Data � GL Accounts General Ledger accounting (New)� Business Transaction � Document Splitting � Classify G/L Accounts for Document Splitting


Active Settings:

Each business transaction that is entered is analyzed during the document splitting procedure. In this analysis, the system determines for each line item whether it is an item that remains unchanged or an item that should be split.

In order that document splitting recognizes how the individual document items are to be handled, you need to classify them. You do this by assigning them to an item category. The item category is determined by the account number. In this IMG activity, you need to assign the following accounts in the system:

• Revenue account

• Expense account

• Bank account/cash account

• Balance sheet account

The classification of all other accounts is known to the system, so you do not have to enter them here. You

can enter an account interval since the system recognizes SAP-specific classifications and does not allow SAP settings to be overwritten by your own settings.





3.2.2.3. General Ledger accounting (New)� Business Transaction� Document Splitting� Classify Document Types for Document Splitting

Config-ID and Title: Classify Document Types for Document

Splitting





Header Details

Description: Classify Document Types for Document Splitting


Menu Path: IMG � Financial Accounting (New)� General Ledger accounting (New Master Data � GL Accounts General Ledger accounting (New)� Business Transaction � Document Splitting � Classify Document Types for Document Splitting


Active Settings:

Every business transaction that is entered is analyzed during the document splitting process. In this process, the system determines which splitting rule is applied to the document. In order that the system can determine the splitting rule, you must assign a business transaction variant to each document type.

To ensure that a splitting rule is used appropriately, the relevant documents must meet certain requirements. These requirements relate in particular to certain item categories that either must or must not be available.

This information is specified for each business transaction variant and is checked against the current document during posting. If the document does not meet these requirements, the system rejects the posting.

Example

The accounting transaction 0200 (customer invoice), variant 0001 (standard), is delivered. In this accounting transaction, the following item categories are allowed: customer, value added tax, withholding tax, expense, revenue, exchange rate differences, and company code clearing.

Standard settings

SAP includes business transactions in the standard system. The item categories that are allowed for each accounting transaction are also defined. Accounting transaction variants are also included. These are additional limitations of the accounting transaction.

You cannot define additional business transactions. However, you can define your own business transaction variants to the the standard business transactions.

Activities

Assign your document types to an accounting transaction and a business transaction variant.

Remarks:





3.2.2.4. General Ledger accounting (New)� Business Transaction� Document Splitting� Define Zero-Balance Clearing Account

Config-ID and Title: Define Zero-Balance Clearing Account





Header Details

Description: Define Zero-Balance Clearing Account


Menu Path: IMG � Financial Accounting (New)� General Ledger accounting (New Master Data � GL Accounts General Ledger accounting (New)� Business Transaction � Document Splitting � Define Zero-Balance Clearing Account


Active Settings:

For account assignment objects for which you want to have a zero balance setting, the system checks whether the balance of account assignment object is zero after document splitting.

If this is not the case, the system generates additional clearing items. In this activity, you have to create a clearing account for these additional clearing items.

Activities

Create a clearing account for your chart of accounts.



3.2.2.5. General Ledger accounting (New)� Business Transaction� Document Splitting� Define Document Splitting Characteristics for General Ledger

Config-ID and Title: Define Document Splitting Characteristics

for General Ledger





Header Details

Description: Define Document Splitting Characteristics for General Ledger


Menu Path: IMG � Financial Accounting (New)� General Ledger accounting (New Master Data � GL Accounts General Ledger accounting (New)� Business Transaction � Document Splitting � Define Document Splitting Characteristics for General Ledger


Active Settings:

In this IMG activity, you specify for which characteristics you want to perform document splitting in General Ledger Accounting. You can define the following:

• Whether you want to apply a zero balance setting for the characteristic

• Whether you want to use a partner field to document a sender/receiver relationship in the clearing

lines generated additionally in the document

• Whether you want the characteristic to be a required entry field (whereby the system only accepts

postings when this field can be filled with a value from the document splitting)

Requirements

The characteristics that you specify should be maintained in at least one of your ledgers.

Remark:



3.2.2.6. General Ledger accounting (New)� Business Transaction� Document Splitting� Activate Document Splitting

Config-ID and Title: Activate Document Splitting





Header Details

Description: Activate Document Splitting


Menu Path: IMG � Financial Accounting (New)� General Ledger accounting (New Master Data � GL Accounts General Ledger accounting (New)� Business Transaction � Document Splitting � Activate Document Splitting


Active Settings:

In this IMG activity, you actives document splitting. The splitting method used is that delivered by SAP as standard, which contains the splitting rules for the different business transactions. If this splitting method does not meet your requirements, you can first define and then select your own method in Customizing for document splitting. You do this under Extended Document Splitting -> Assign Splitting Method.

The activation then applies for the entire client. You can explicitly exclude individual company codes from document splitting. This means, however, that you are then no longer able to create any cross-company-code transactions containing company codes that have divergent settings for document splitting.

Remark:



3.2.2.7. General Ledger accounting (New)� Business Transaction� open item clearing � Prepare Automatic Clearing

Config-ID and Title: Prepare Automatic Clearing





Header Details

Description: Prepare Automatic Clearing


Menu Path: IMG � Financial Accounting (New)� General Ledger accounting (New Master Data � GL Accounts General Ledger accounting (New)� Business Transaction � open item clearing � Prepare Automatic Clearing


Active Settings:

In this activity you enter the criteria for grouping an account's open items for automatic clearing. The clearing program clears the open items that are grouped together if their total balance equals zero in local and foreign currency.

You must enter the following standard criteria:

o account type

o account number or a number interval

You can also enter a further five criteria.

You select these five additional criteria from the fields in table BSEG or BKPF. If possible, you should choose fields that are also contained in table BSIS (G/L accounts), BSID (customers), or BSIK (vendors). You can determine the field names by displaying the tables in the Data Dictionary, which you reach by choosing

Remark:



3.2.2.8. General Ledger accounting (New)� Business Transaction� Interest calculation global setting � Define Interest Calculation Types

Config-ID and Title: Define Interest Calculation Types





Header Details

Description: Define Interest Calculation Types


Menu Path: IMG � Financial Accounting (New)� General Ledger accounting (New Master Data � GL Accounts General Ledger accounting (New)� Business Transaction � Interest calculation global setting � Define Interest Calculation Types


Active Settings:

In this activity, you create your interest indicators and specify that they are to be used for account balance interest calculation.

The master record of an account must contain an interest indicator so that it is taken into consideration during interest calculation.

Activities

1. Create the required interest indicators. 2. Make sure an interest indicator is entered in the master records of the required accounts

Remarks:



3.2.2.9. General Ledger accounting (New)� Business Transaction� Interest calculation � Define Reference Interest Rates

Config-ID and Title: Define Reference Interest Rates





Header Details

Description: Define Reference Interest Rates


Menu Path: IMG � Financial Accounting (New)� General Ledger accounting (New Master Data � GL Accounts General Ledger accounting (New)� Business Transaction � Interest calculation � Define Reference Interest Rates


Active Settings:

In this activitiy, you define your reference interest rates by entering a key and a mnemonic name. All other fields are purely informative.

Define your reference interest rates. Specify the interest rates for the reference interest rates in the "Enter Interest Values" activity.

Remark:

Reference rate is the PLR rate which vary based on RBI recommendation which is maintained regularly.



3.2.2.10. General Ledger accounting (New)� Business Transaction� Interest calculation � Define Reference Interest Rates

Config-ID and Title: Define Reference Interest Rates





Header Details

Description: Define Reference Interest Rates


Menu Path: IMG � Financial Accounting (New)� General Ledger accounting (New Master Data � GL Accounts General Ledger accounting (New)� Business Transaction � Interest calculation � Define Reference Interest Rates


Active Settings: In this activity, you specify how the interest rate is to be determined for each interest indicator. You can make this specification dependent on currency and a validity date. You specify a condition for each entry. This determines which interest type it is (debit or credit interest). In this activity, you also specify which interest rates are to be used. You have the following choices for doing this:

• You specify a reference interest rate for which the interest rate is stored

• You specify the required interest rate directly in the Surcharge field without specifying a reference interest rate

• You specify a reference interest rate and, in addition, an interest rate in the Surcharge field. The

interest surcharge is added to the reference interest rate when paying interest

• You can specify interest rates in graduated form using the "From amount" field.

Remarks:

Here the required premium interest is maintained on over the reference rate which fixed by the user banker



3.2.2.11. General Ledger accounting (New)� Business Transaction� Interest calculation � Enter Interest Values

Config-ID and Title: Enter Reference Interest Rates Values





Header Details

Description: Enter Reference Interest Rates Values


Menu Path: IMG � Financial Accounting (New)� General Ledger accounting (New Master Data � GL Accounts General Ledger accounting (New)� Business Transaction � Interest calculation � Enter Interest Values


Active Settings:

In this activity, you specify the required interest rates dependent on the date for the reference interest rates.

The interest rates defined here are used when determining a variable interest rate that is linked with one of these reference interest rates, for example.

You can make new entries and/or change or delete existing entries. You can use the functions "Copy as", "Undo change", and "Position" to help you make your entries.

Remarks:



3.2.3. General Ledger accounting (New)� Periodic Processing � Valuate Config-ID and Title: Valuating





Header Details

Description: Valuating


Menu Path: IMG � Financial Accounting (New)� General Ledger accounting (New Master Data � GL Accounts General Ledger

accounting (New)� Periodic Processing � Valuate


Active Settings:

In the following activities you make the settings for foreign currency valuation.



3.2.3.1. General Ledger accounting (New)� Periodic Processing � Valuate� Define Valuation Methods

Config-ID and Title: Define Valuation Methods





Header Details

Description: Define Valuation Methods


Menu Path: IMG � Financial Accounting (New)� General Ledger accounting (New Master Data � GL Accounts General Ledger

accounting (New)� Periodic Processing � Valuate� Define

Valuation Methods


Active Settings:

In this IMG activity, you define your foreign currency valuation methods for the open items. With the

valuation method, you group specifications together which you need for the balance and individual valuation.

Remarks:



3.2.3.2. General Ledger accounting (New)� Periodic Processing � Valuate� foreign currency valuation � Define Valuation Methods � Prepare Automatic Postings for Foreign Currency Valuation

Config-ID and Title: Prepare Automatic Postings for Foreign

Currency Valuation





Header Details

Description: Prepare Automatic Postings for Foreign Currency Valuation


Menu Path: IMG � Financial Accounting (New)� General Ledger accounting (New Master Data � GL Accounts General Ledger accounting (New)� Periodic Processing � Valuate� foreign currency valuation � Define Valuation Methods � Prepare Automatic Postings for Foreign Currency Valuation


Active Settings:

In this activity you define the numbers of the accounts to which you want the system to automatically Post exchange rate differences when valuating open items and foreign currency balances.

You can also define the accounts for realized exchange rate differences during open item clearing. For more information on this, see the Define Accounts for Exchange Rate Differences activity.

You can use the currency type to control account determination during open item valuation and exchange

rate difference posting. You could, for example, post gains in local currency and gains in group currency to separate accounts.

When valuating open items the system posts to a balance sheet adjustment account and to an account for

exchange rate differences that occur during the valuation. Exchange rate differences could be either a gain or a loss. You store the account numbers accordingly.

The valuation of foreign currency balances requires a special key that is assigned the gain and loss

accounts for posting any exchange rate differences that occur during valuation. You can freely define this key. You then enter it in the master records of the accounts that you want to valuate. To post the differences that are determined from a group of G/L accounts to the same gain or loss accounts, enter the same key for all these G/L accounts.

Remarks:





3.2.3.3. General Ledger accounting (New)� Periodic Processing � reclassify � Define Adjustment Accounts for GR/IR Clearing

Config-ID and Title: Define Adjustment Accounts for GR/IR

Clearing





Header Details

Description: Define Adjustment Accounts for GR/IR Clearing


Menu Path: IMG � Financial Accounting (New)� General Ledger accounting (New Master Data � GL Accounts General Ledger accounting (New)� Periodic Processing � reclassify� Define

Adjustment Accounts for GR/IR Clearing


Active Settings:

The goods receipt/invoice receipt (GR/IR) clearing account is posted to whenever you receive goods that have not been invoiced yet or whenever you receive invoices for goods that have not been delivered yet.

In this activity you define the numbers of the adjustment and target accounts for the automatic postings for the GR/IR clearing account.

Transfer postings have to be made at the balance sheet date to reflect the goods invoiced but not delivered and the goods delivered but not invoiced. The program that analyzes the GR/IR clearing account adjustments this account by posting any outstanding amounts to an adjustment account. It makes the offsetting entry to the account for goods delivered but not invoiced or to the account for goods invoiced but not delivered (target account).

Activities

Specify the account numbers you require for the adjustment account and the target account.

Additional information

For more information about the GR/IR clearing account, see the SAP Library under Financial Accounting -> Closing and Reporting.

Remark:



3.2.3.4. General Ledger accounting (New)� Periodic Processing �

reclassify � transfer and sort receivable and payable account � Define Sort Method and Adjustment Accts for Regrouping Receivable & payable account

Config-ID and Title: Define Sort Method and Adjustment Accts

for Regrouping Receivable & payable account





Header Details

Description: Define Sort Method and Adjustment Accts for Regrouping Receivable & payable account


Menu Path: IMG � Financial Accounting (New)� General Ledger accounting (New Master Data � GL Accounts General Ledger accounting (New)� Periodic Processing � reclassify� transfer and sort receivable and payable account � Define Sort Method and Adjustment Accts for Regrouping Receivable & payable account


Active Settings:

In this activity you define your sort method.

You define the periods for the remaining terms of receivables and payables. For each period, you can specify whether transfer postings are to be made for customer, vendor, or G/L accounts



3.2.3.5. General Ledger accounting (New)� Periodic Processing � Carry forward � Define Retained Earnings Account

Config-ID and Title: Define Retained Earnings Account





Header Details

Description: Define Retained Earnings Account


Menu Path: IMG � Financial Accounting (New)� General Ledger accounting (New Master Data � GL Accounts General Ledger accounting (New)� Periodic Processing � reclassify� transfer and sort receivable and payable account � Define Sort Method and Adjustment Accts for Regrouping Receivable & payable account


Active Settings:

You assign a retained earnings account to each P&L account by specifying a P&L statement account type in the chart of accounts area of each P&L account.

At the end of a fiscal year, the system carries forward the balance of the P&L account to the retained earnings account. You can define one or more P&L statement account types per chart of accounts and assign them to retained earnings accounts.

Remark:



Accounts Receivable and Accounts Payable



3.3. Account Receivable & account payable 3.3.1. Account Receivable & account payable� customer accounts

3.3.1.1. Account Receivable & account payable� customer accounts �preparation for creating customer master data �

Config-ID and Title: preparation for creating customer master data





Header Details

Description: preparation for creating customer master data


Menu Path: IMG � Financial Accounting (New)� Account Receivable & account payable� customer accounts �preparation for creating customer master data �


Active Settings:

In the following steps, you make the settings for preparing to create customer master records. To do this, you need the following objects:

• Number ranges.

The number range determines the number interval from which the account number for the master record is to be selected. The account number must be assigned when creating a customer master record. Using the number range, you also determine whether the numbers are assigned internally by the system or externally by yourself.

• Account group

The account group is a grouping of properties which control the creation of master records. It determines which fields have to be or can be filled when creating the master record. A number range is allocated to the account group. The type of number assignment and a number interval are determined using it. Accounts which require the same master record fields and use the same number range are created using the same account group.

• Field status

The field status definitions determine the status of the fields on the screens for the master data. You define the status dependent on the account group. You can also determine the status dependent on the processing type (transaction) and on the company code



3.3.1.2. Account Receivable & account payable� customer accounts �preparation for creating customer master data � Define Account Groups with Screen Layout (Customers)

Config-ID and Title: Define Account Groups with Screen Layout

(Customers)





Header Details

Description: Define Account Groups with Screen Layout (Customers)


Menu Path: IMG � Financial Accounting (New)� Account Receivable & account payable� customer accounts �preparation for creating customer master data � Define Account Groups with Screen Layout (Customers)


Active Settings:

In this step, you determine the account groups for customers.

You can also define reference account groups for one-time accounts. You can use these to control the fields of the one-time account screen so that, for example, certain fields are displayed as required fields or are hidden.

When creating a customer account, you must specify an account group. You can specify a reference account group under "Control" in the "General data" part of a one-time account's master data. If you do not specify a reference account group, then, as previously, all fields of the one-time account screen are ready for input during document entry.

You use the account group to determine:

• the interval for the account numbers

• whether the number is assigned internally by the system or externally by the user (type of number assignment)

• whether it is a one-time account

• which fields are ready for input or must be filled when creating and changing master records (field status)

C:\Documents and Settings\i029638\Desktop\Account group for customer.doc



3.3.2. Account Receivable & account payable� Vendor accounts 3.3.2.1. Account Receivable & account payable� Vendor accounts �

Master Data � preparation for creating vender master data Config-ID and Title: Preparation for creating vender master data





Header Details

Description: Preparation for creating vender master data


Menu Path: IMG � Financial Accounting (New)� Account Receivable & account payable� Vender accounts � Master Data �preparation for creating vender master data


Active Settings:

In the following steps, you make the settings for preparing to create vendor master records. To do this, you need the following objects:

• Number ranges The number range determines the number interval from which the account number for the master record is to be selected. The account number must be assigned when creating a vendor master record. Using the number range , you also determine whether the numbers are assigned internally by the system or externally by yourself.

• Account group The account group is a grouping of properties which control the creation of master records. It determines which fields have to be or can be filled when creating the master record. A number range is allocated to the account group. The type of number assignment and a number interval are determined using it. Accounts which require the same master record fields and use the same number range are created using the same account group.

• Field status The field status definitions determine the status of the fields on the screens for the master data. You define the status dependent on the account group. You can also determine the status dependent on the processing type (transaction) and on the company code.



3.3.2.2. Account Receivable & account payable� Vendor accounts � Master Data � preparation for creating vender master data � Define Account Groups with Screen Layout (Vendors)

Config-ID and Title: Define Account Groups with Screen Layout (Vendors)





Header Details

Description: Define Account Groups with Screen Layout (Vendors)


Menu Path: IMG � Financial Accounting (New)� Account Receivable & account payable� Vender accounts � Master Data �preparation for creating vender master data � Define Account Groups with Screen Layout (Vendors)


Active Settings:

In this step you determine the account groups for vendors.

You can also define reference account groups for one-time accounts. These enable you to control the fields in the one-time account screen. You can, for example, make certain fields required fields and suppress others.

When creating a vendor account, an account group must be specified. You can enter a reference account group in the "General data" section of the one-time account master record under "Control data". If you do not specify a reference account group, all fields in the one-time account screen for document entry are ready for input (as before).

Via the account group you determine

• The interval for the account numbers

• Whether the number is assigned internally by the system or externally by the user (type of number assignment)

• Whether it is a one-time account

• Which fields are ready for input or must be filled when creating and changing master records (field status)

3.3.3. Account Receivable & account payable� Business Transactions



3.3.3.1. Account Receivable & account payable� Business Transactions � Incoming Invoices/Credit Memos

Config-ID and Title: Incoming Invoices/Credit Memos





Header Details

Description: Incoming Invoices/Credit Memos


Menu Path: IMG � Financial Accounting (New)� Account Receivable & account payable� Business Transactions � Incoming Invoices/Credit Memos


Active Settings:

You can make new document settings here, or check existing settings, so that they correspond to the business transaction you are currently processing:



3.3.3.2. Account Receivable & account payable� Business Transactions � Maintain Terms of Payment

Config-ID and Title: Maintain Terms of Payment





Header Details

Description: Maintain Terms of Payment


Menu Path: IMG � Financial Accounting (New)� Account Receivable & account payable� Business Transactions � Maintain Terms of Payment


Active Settings:

In the step Maintain terms of payment, you can define rules with which the system can determine the

required terms of payment automatically. The rules are stored under a four-character key. You assign the terms of payment specified to the vendors in the master record via the key. The key and the terms determined with it are proposed when entering a document to the vendor account.

Remarks:



3.3.3.3. Account Receivable & account payable� Business Transactions � Define Terms of Payment for Instalment Payments

Config-ID and Title: Define Terms of Payment for Instalment

Payments





Header Details

Description: Define Terms of Payment for Instalment Payments


Menu Path: IMG � Financial Accounting (New)� Account Receivable & account payable� Business Transactions � Define Terms of Payment for Instalment Payments


Active Settings:

In this step you can determine whether an invoice amount is to be divided into partial amounts with different due dates. For these terms of holdback/ retained payment, you must determine the amount of the holdback/ retained in percent and the terms of payment for each holdback/ retained payment. If you then post an invoice with terms of holdback/retained payment, the system generates the corresponding number of line items due to your specifications for the holdback/retained.

Remarks:



3.3.3.4. Account Receivable & account payable� Business Transactions � Business Transactions � Out Going Payments � Outgoing Payment Global Settings � Define Accounts for Cash Discount Taken

Config-ID and Title: Define Accounts for Cash Discount Taken





Header Details

Description: Define Accounts for Cash Discount Taken


Menu Path: IMG � Financial Accounting (New)� Account Receivable & account payable� Business Transactions � Out Going Payments � Outgoing Payment Global Settings � Define Accounts for Cash Discount Taken


Active Settings:

In this step, you define the account numbers of your cash discount received accounts. The system posts the cash discount amount to these accounts when clearing open items.



3.3.3.5. Account Receivable & account payable� Business Transactions � Business Transactions � Out Going Payments � Outgoing Payment Global Settings � Define Accounts for Bank Charges

Config-ID and Title: Define Accounts for Bank Charges





Header Details

Description: Define Accounts for Bank Charges


Menu Path: IMG � Financial Accounting (New)� Account Receivable & account payable� Business Transactions � Out Going Payments � Outgoing Payment Global Settings � Define Accounts for Bank Charges


Active Settings:

In this step, you define the account numbers of your bank charges accounts. The system posts the charges amount you specify for a bank item when settling payment to these accounts Following G/L account assigned for the Bank Charges



3.3.3.6. Account Receivable & account payable� Business Transactions � Business Transactions � Out Going Payments � Outgoing Payment Global Settings � Automatic Outgoing Payments � Payment Method/Bank Selection for Payment Program � Setup Payment Program

Config-ID and Title: Setup Payment Program





Header Details

Description: Setup Payment Program

Transaction Code: SPRO / FBZP

Menu Path: IMG � Financial Accounting (New)� Account Receivable & account payable� Business Transactions � Out Going Payments � Outgoing Payment Global Settings � Automatic Outgoing Payments � Payment Method/Bank Selection for Payment Program � Setup Payment Program


Active Settings:

In this activity you make the settings that control the payment program. You determine:

• Which company codes are included in payment transactions and which company codes make payments.

• Which payment methods can be used.

For the payment method, you make specifications that are either dependent on the country or on the paying company code.

• Whether you want to use payment method supplements.

You can group payments using payment method supplements (mailstop codes) and therefore, for example, control the sending of checks.

• From which bank accounts payment is made.

The payment program can select the bank account according to defined rules or you can specify from which account a payment is to be made.

• With which form payment is made.

The forms are to be defined in the system using SAPscript. For every paying company code, you specify which form is used per payment method.



Requirements

You have created your house banks in the Define House Banks activity.

Activities

1. Find out which forms are used for payment transactions in your company. a) Check whether the forms you use are defined in the system. b) Change the predefined forms if necessary, or create new forms.

2. Find out which company codes pay and which company codes participate in payment transactions. 3. Make the settings for payment transactions for all company codes. Choose the activity Set Up All Company Codes for Payment Transactions. If you wish to use payment method supplements, activate the relevant attribute. Choose Company code -> All , and then the required company code. Select the Payment method supplements attribute. If you wish to display the payment method supplement field in line item display for customers or vendors, you can define appropriate display variants. The same applies when displaying payments and paid items in the function for displaying payment proposals. Choose the following activities:

a) Define Line Layout b) Make Settings for Displaying Payments c) Make Settings for Displaying Line Items

4. Make the settings for payment transactions for the paying company codes. Choose Set Up Paying Company Codes for Payment Transactions

5. Find out which payment methods are generally used in your company and which payment methods are used in the individual paying company codes. When defining a payment method, you enter keys which must have been defined previously. These include:

o The document type for posting the payment

o The special G/L indicator for posting a bill of exchange

o The forms for printing payment media, payment advice notes, and check/bills of exchange

a) Check whether the payment methods your company needs are defined in the system. To do this, choose Set Up Payment Methods per Country for Payment Transactions. b) Make the payment method settings for each company code. To do so, choose Set Up Payment Methods per Company Code.

6. Make sure that the payment methods to be used to pay the open items of a customer/vendor are entered in the relevant customer/vendor master records. 7. For the paying company codes, specify the bank accounts to be used for making payments. To do so, choose Set Up Bank Determination for Payment Transactions.

a) Enter the banks and the bank ranking order. Select the paying company code, and double-click Ranking. b) Define the bank accounts. Select the paying company code and double-click Bank accounts. c) Define the available amounts. Select the paying company code and double-click Available amounts. d) Define the value date. Select the paying company code and double-click Value date. e) Define the charges for bill of exchange payments. Select the paying company code and double-click Expenses/Charges.

8. Order the required forms. If you want to issue payment forms in different currencies, you should print the currency key using the print program. The forms should then not contain a currency key.



3.3.3.7. Account Receivable & account payable� Business Transactions � Business Transactions � Out Going Payments � Outgoing Payment Global Settings � Automatic Outgoing Payments � Payment Method/Bank Selection for Payment Program � Set up all company codes for payment transactions

Config-ID and Title: Set up all company codes for payment transactions





Header Details

Description: Set up all company codes for payment transactions


Menu Path: IMG � Financial Accounting (New)� Account Receivable & account payable� Business Transactions � Out Going Payments � Outgoing Payment Global Settings � Automatic Outgoing Payments � Payment Method/Bank Selection for Payment Program � Set up all company codes for payment transactions


Active Settings:

In this activity, you make specifications for all company codes involved in payment transactions.

For each company code, you make the following specifications:

• Paying company code

You assign a paying company code to each company code. This means that you can have one company code process payment transactions centrally for several company codes

• Separate payment per business area

• Use payment method supplements



3.3.3.8. Account Receivable & account payable� Business Transactions � Business Transactions � Out Going Payments � Outgoing Payment Global Settings � Automatic Outgoing Payments � Payment Method/Bank Selection for Payment Program � Set up paying Company Codes for Payment

Transaction Config-ID and Title: Set up paying Company Codes for Payment

Transaction





Header Details

Description: Set up paying Company Codes for Payment Transaction


Menu Path: IMG � Financial Accounting (New)� Account Receivable & account payable� Business Transactions � Out Going Payments � Outgoing Payment Global Settings � Automatic Outgoing Payments � Payment Method/Bank Selection for Payment Program � Set up paying Company Codes for Payment Transaction


Active Settings:

In this activity, you make the following specifications for the paying company codes:

• Data for controlling the payment program

Here you specify the minimum amount for which an incoming or outgoing payment is created, for example. You can define additional amount limits for the payment method. To do so, choose the activity Set Up Payment Methods per Company Code for Payment Transactions.

• Specifications for paying with bills of exchange

You can show or hide the settings for paying with bills of exchange.

• Forms and sender details for advice notes and EDI accompanying sheets

If you wish to print payment advice notes or an EDI accompanying sheet, specify the form name. Specify also the SAPscript text modules that contain details about the sender that are to be printed on the payment advice note. You can go directly from this transaction to the transaction for editing forms and text modules.





3.3.3.9. Automatic Outgoing Payments � Payment Method/Bank Selection for Payment Program � Set Up Payment Methods Per Country for Payment

Transactions Config-ID and Title: Set Up Payment Methods Per Country for

Payment Transactions





Header Details

Description: Set Up Payment Methods Per Country for Payment Transactions


Menu Path: IMG � Financial Accounting (New)� Account Receivable & account payable� Business Transactions � Out Going Payments � Outgoing Payment Global Settings � Automatic Outgoing Payments � Payment Method/Bank Selection for Payment Program � Set Up Payment Methods Per Country for Payment Transactions


Active Settings:

In this activity, you specify which payment methods are to be used in each country. You enter the following

details for the payment method:

• Country-Specific Specifications for the Payment Method:

o Payment method either for incoming or outgoing payments

o Characteristics for classifying payment method

Here you specify the type of payment method in question (such as check or bank transfer) and any other features of that payment method (the payment method is used for personnel payments, for example). When you select a payment method, only the characteristics that are appropriate for that payment method are displayed. This means that you can only select fields that are relevant for the selected payment method.

o Required entries in master record

Here you determine which specifications in the master record control whether the payment method is used (such as bank details or collection authorization).



3.3.3.10. Automatic Outgoing Payments � Payment Method/Bank Selection for Payment Program � Set Up Payment Methods Per Company Code for Payment

Config-ID and Title: Set Up Payment Methods Per Company Code for Payment





Header Details

Description: Set Up Payment Methods Per Company Code for Payment


Menu Path: IMG � Financial Accounting (New)� Account Receivable & account payable� Business Transactions � Out Going Payments � Outgoing Payment Global Settings � Automatic Outgoing Payments � Payment Method/Bank Selection for Payment Program � Set Up Payment Methods Per Company Code for Payment


Active Settings:

In this activity, you specify which payment methods can be used per company code and determine the

conditions under which a payment method should be used.

• Amount limits for payments within which the payment program can select the payment method

Note:

You always have to specify a maximum amount, otherwise the payment method cannot be used. If you specify the payment method in an open item, the payment program ignores the amounts you enter here.

• Specifications for grouping items for payment (such as single payment for marked items)

• Specifications for foreign/foreign currency payments

• Specifications for optimizing bank selection

• Specifications for the form to be used for the payment medium

• Specifications for issuing payment advice notes









3.3.3.11. Automatic Outgoing Payments � Payment Method/Bank Selection for Payment Program � Set Up Bank Determination for payment Transactions

Config-ID and Title: Set Up Bank Determination for payment Transactions





Header Details

Description: Set Up Bank Determination for payment Transactions


Menu Path: IMG � Financial Accounting (New)� Account Receivable & account payable� Business Transactions � Out Going Payments � Outgoing Payment Global Settings � Automatic Outgoing Payments � Payment Method/Bank Selection for Payment Program � Set Up Bank Determination for payment Transactions


Active Settings:

In this activity, you make settings that the payment program uses to select the banks or bank accounts from which payment is to be made. You define the following:

• Ranking order of banks

You specify which house banks are permitted and rank them in a list.

• Bank accounts

For each house bank and payment method (and currency, if required), you specify which bank account is to be used for payments.



Note: - This setting holes well for F-58 transaction (Cheque Printing) where the bank transaction hits to bank sub account

• Available amounts

For each account at a house bank, you enter the amounts that are available for the payment run. You enter separate amounts for incoming and outgoing payments. Specifying available amounts enables you to control which bank account is to be used for payments. You can specify the amounts depending on the value date at the bank.

Customizing settings are as follows:



3.3.3.12. Incoming Payments � Incoming Payments Global Settings � Define Accounts for cash Discount Granted

Config-ID and Title: Define Accounts for cash Discount Granted





Header Details

Description: Set Up Bank Determination for payment Transactions


Menu Path: IMG � Financial Accounting (New)� Account Receivable & account payable� Business Transactions � Incoming Payments Incoming Payments Global Settings � Define Accounts for cash Discount Granted


Active Settings:

In this step, you define the account numbers for your cash discount expense accounts. The system posts the cash discount amount to these accounts when clearing open items.



3.3.3.13. Dunning � Dunning procedure � Define Dunning Procedures

Config-ID and Title: Define Dunning Procedures





Header Details

Description: Define Dunning Procedures


Menu Path: IMG � Financial Accounting (New)� Account Receivable & account

payable� Business Transactions � Dunning � Dunning procedure � Define Dunning Procedures


Active Settings:

In this activity you enter the settings that control the dunning program by:

• Specifying the company codes to include in dunning. You specify these company codes when configuring the dunning program.

• Setting up the dunning procedure you want to use. Dunning procedures are company code independent. They determine the dunning interval, the grace periods for the due date determination, and the number of dunning levels. You can also set the dunning level at which you want to list all due items from an account in the dunning notice.

• Setting the dunning charges. You can either specify a fixed charge or have the system calculate the charge on the basis of a percentage rate you specify.

• Specifying the net payment due date at which a particular dunning level is reached.

Specifying the dunning notice you want to send to your customers. You have to define one or more forms for the notice.



3.3.3.14. Dunning � Dunning procedure � Define Interest Rates

Config-ID and Title: Define Interest Rates





Header Details

Description: Define Interest Rates


Menu Path: IMG � Financial Accounting (New)� Account Receivable & account

payable� Business Transactions � Dunning � Dunning procedure � Define Interest Rates


Active Settings:

In this activity, you specify for each interest indicator

• Which interest rate is to be used for debit or credit balances

• The currency in which the interest is to be calculated

• The date as of which the entry for the interest indicator is valid



3.3.3.15. Dunning � Print out � Assign Dunning Forms

Config-ID and Title: Assign Dunning Forms





Header Details

Description: Assign Dunning Forms


Menu Path: IMG � Financial Accounting (New)� Account Receivable & account payable� Business Transactions � Dunning � Print out � Assign Dunning Forms


Active Settings:

Assign Dunning Forms

In this activity you specify the forms you want to use for the standard dunning procedure and the legal dunning proceedings per dunning procedure, company code, and account type.



3.3.3.16. Down Payment Received� Define Reconciliation Accounts for Customer Down Payments

Config-ID and Title: Define Reconciliation Accounts for Customer Down Payments





Header Details

Description: Define Reconciliation Accounts for Customer Down Payments


Menu Path: IMG � Financial Accounting (New)� Account Receivable & account payable� Business Transactions � Down Payment Received� Define Reconciliation Accounts for Customer Down Payments


In this step, you define an account in which the customer down payments or down payment requests are managed in the general ledger. In the case of down payments or down payment requests, the posting is automatically made to this account instead of to the normal receivables account (reconciliation account). Active Settings:

List Special G/L indicators which have been added are as follows.

List of Reconciliation accounts added for special g/L indicators are as follows





3.3.3.17. Down Payment Made� Define Alternative Reconciliation Account for Down Payments

Config-ID and Title: Define Alternative Reconciliation Account for Down Payments





Header Details

Description: Define Alternative Reconciliation Account for Down Payments


Menu Path: IMG � Financial Accounting (New)� Account Receivable & account payable� Business Transactions � Down Payment made� Define Alternative Reconciliation Account for Down Payments


Active Settings:

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

List of Special G/L indicators that have been created are as follows

Reconciliation accounts that have been assigned to each special g/l indicator are as follows







3.3.3.18. Alternative Reconciliation Account� Other Special G/L Transactions� Define Alternative Reconciliation Account for Customers

Config-ID and Title: Define Alternative Reconciliation Account for Customers





Header Details

Description: Define Alternative Reconciliation Account for Customers


Menu Path: IMG � Financial Accounting (New)� Account Receivable & account payable� Business Transactions � Alternative Reconciliation Account� Other Special G/L Transactions� Define Alternative Reconciliation Account for Customers


Active Settings:

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

The specification is dependent on account type, special G/L indicator, chart of accounts and reconciliation account.



3.3.3.19. Alternative Reconciliation Account� Other Special G/L Transactions� Define Alternative Reconciliation Account for Vendors

Config-ID and Title: Define Alternative Reconciliation Account for Vendors





Header Details

Description: Define Alternative Reconciliation Account for Vendors


Menu Path: IMG � Financial Accounting (New)� Account Receivable & account payable� Business Transactions � Alternative Reconciliation Account� Other Special G/L Transactions� Define Alternative Reconciliation Account for Vendors


Active Settings:

In this step, you define accounts which show the posting of a corresponding special G/L transaction to the general ledger. The postings are made to these accounts instead of to the normal reconciliation account.




Bank Accounting



3.4. Bank accounting � Bank accounts�

3.4.1. Bank accounting � Bank accounts� Define House Banks

Config-ID and Title: Define House Banks





Header Details

Description: Define House Banks


Menu Path: IMG � Financial Accounting (New)� Bank accounting � Bank accounts� Define House Banks


Active Settings:

Each house bank of a company code is represented by a bank ID in the SAP system, every account at a house bank by an account ID.

In the SAP system, you use the bank ID and the account ID to specify bank details. These specifications are used, for example, for automatic payment transactions to determine the bank details for payment.

Remark:

House bank represent the local bank where the account is. Address is maintained through bank key

Account id represent the type of bank account eg: CC account, current account, for that house bank for each account maintained in that bank. GL is linked to account ID.

Suppose you have five current accounts in a particular bank, you have to create five Account IDs under the same house bank and cheque lots are created for each Account ID.

Bank account number this field contains the number under which the account is managed at the bank (only an informative field)

3.4.2. Bank accounting � Business Transactions



Config-ID and Title: Business Transactions





Header Details

Description: Business Transactions


Menu Path: IMG � Financial Accounting (New)� Bank accounting Business Transactions


Active Settings:

In the following activities you make all the settings necessary for business volume in banking-related accounting.



3.4.2.1. Bank accounting � Business Transactions� Check Deposit

Config-ID and Title: Check Deposit





Header Details

Description: Check Deposit


Menu Path: IMG � Financial Accounting (New)� Bank accounting�Business Transactions� Check Deposit


Active Settings:

In the following steps you will make all the settings necessary for check deposit.



3.4.2.2. Bank accounting � Business Transactions� Check Deposit � Create and Assign Business Transactions

Config-ID and Title: Create and Assign Business Transactions





Header Details

Description: Create and Assign Business Transactions


Menu Path: IMG � Financial Accounting (New)� Bank accounting�Business Transactions� Check Deposit � Create and Assign Business Transactions


Active Settings:

This step you store transaction indicators for check deposit and allocate these indicators to a posting rule.

You specify this indicator in the "Transaction" field on the initial screen of check deposit.

Following transaction are created where customer is credited immediately with clearing the balance or with out clearing the balance or crediting with special GL indicator and debited with bank receivable account (2 serious)



3.4.2.3. Bank accounting � Business Transactions� Check Deposit � Define Posting Keys and Posting Rules for Check Deposit

Config-ID and Title: Define Posting Keys and Posting Rules for Check Deposit





Header Details

Description: Define Posting Keys and Posting Rules for Check Deposit


Menu Path: IMG � Financial Accounting (New)� Bank accounting�Business Transactions� Check Deposit � Define Posting Keys and Posting Rules for Check Deposit


Active Settings:

In this activity you store the posting keys and posting rules for check deposit.

Creating Keys for Posting Rules

Under this node, you define a posting rule for check deposits. The key determines the posting rules for general ledger and sub ledger accounting. The posting rule represents the business transactions typical of the check deposit, such as:

• Incoming check to check clearing

• Check clearing to customer

• Bank to incoming check

Defining Posting Rules

You specify the posting rules for either one or two posting areas, depending on whether the posting transaction affects only the general ledger or also the subledger.

For example, you need only one posting area if you do not use any clearing accounts, but instead directly debit the bank account and credit the incoming check account.

Creating Account Symbols

You then control the account determination for each posting transaction and set up an account symbol for this.

In account determination, an account symbol previously setup depending on various modification factors is replaced by an account to be posted to.

Account symbols are used to group together similar business transactions (such as incoming checks) and to direct them to different accounts according to a pre-determined differentiation. This enables you to have flexible account determination for clearing accounts that are to be posted to differently.



In the above rules posting area is set as 2 i.e. which are relevant for sub ledger posting and posting types are maintained either 8 or 3 Posting type 8 which clear the customer balances while crediting and posting type 3 which post with out clearing any line item i.e. accounted “on account basis”.



3.4.2.4. Bank accounting � Business Transactions� Check Deposit � Define Variants for Check deposit

Config-ID and Title: Define Variants for Check deposit





Header Details

Description: Define Variants for Check deposit


Menu Path: IMG � Financial Accounting (New)� Bank accounting�Business Transactions� Check Deposit � Define Variants for Check deposit


Active Settings:

In this step you can create your own account assignment variants for check deposit in order to modify the arrangement and/or selection of account assignment fields according to your company-specific requirements.

New active variant VID04 has been created for the check deposit processing



3.4.2.5. Bank accounting � Business Transactions� Bill of Exchange transactions � Bill of exchange receivable � Post bill of exchange receivable� Define Alternative Reconciliation Acct for Bills/ Exch. Receivable

Config-ID and Title: Define Alternative Reconciliation Acct for Bills/ Exch. Receivable





Header Details

Description: Define Alternative Reconciliation Acct for Bills/ Exch. Receivable


Menu Path: IMG � Financial Accounting (New)� Bank accounting � Business Transactions� Bill of Exchange transactions � Bill of exchange receivable � Post bill of exchange receivable� Define Alternative Reconciliation Acct for Bills/ Exch. Receivable


Active Settings:

In this activity you define the accounts in which bill of exchange payments are recorded in the general ledger. When you post bills of exchange, the system will post the entries to these accounts instead of to the normal receivables account (reconciliation account). This way it is possible to keep bills of exchange separate from the normal receivables. A transfer posting for balance sheet purposes is no longer necessary.

Note

The specification of accounts depends on the account type, special G/L indicator, chart of accounts, and reconciliation account for normal receivables.





3.4.2.6. Bank accounting � Business Transactions� Bill of Exchange transactions � Bill of exchange receivable � Post bill of exchange receivable� Define Accounts for bill of exchange Transactions

Config-ID and Title: Define Accounts for bill of exchange Transactions





Header Details

Description: Define Accounts for bill of exchange Transactions


Menu Path: IMG � Financial Accounting (New)� Bank accounting � Business Transactions� Bill of Exchange transactions � Bill of exchange receivable � Post bill of exchange receivable� Define Accounts for bill of exchange Transactions


Active Settings:

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

Note

You store the accounts depending on the chart of accounts. For some transactions you can also break them down according to tax codes

Debit Bill of exchange receivable account (140000) with spl. Gl. Indicater W

Credit customer regular acount





3.4.2.7. Bank accounting � Business Transactions� Bill of Exchange transactions � Bill of exchange receivable � Present bill of exchange receivable at bank � Define Bank Sub accounts

Config-ID and Title: Define Bank Sub accounts





Header Details

Description: Define Bank Sub accounts


Menu Path: IMG � Financial Accounting (New)� Bank accounting � Business Transactions� Bill of Exchange transactions � Bill of exchange receivable � Present bill of exchange receivable at bank � Define Bank Sub accounts


Active Settings:

You specify the bank sub accounts that display the bill of exchange liability from the point of view of the bank. The bill of exchange liability results from the bill of exchange usage.

Note

You can break down your specification according to usage indicator, special G/L indicator, and reconciliation account for receivables.

When B/E presented to Bank either for discounting or for collection

Debited with house bank masked with +++++++2 for bank receivable account and

Credited with House bank masked with +++++++6 for customer contingent clearing account



3.4.2.8. Bank accounting � Business Transactions� Bill of Exchange transactions � Bill of exchange receivable � Present bill of exchange receivable at bank � Maintain Account Determination

Config-ID and Title: Maintain Account Determination





Header Details

Description: Maintain Account Determination


Menu Path: IMG � Financial Accounting (New)� Bank accounting � Business Transactions� Bill of Exchange transactions � Bill of exchange receivable � Present bill of exchange receivable at bank � Maintain Account Determination


Active Settings

In this step you maintain the types of charges for each house bank and each transaction. You can define as many types of charges as you require for each bank and account or in general.

To post the charges, you have to specify the expense account to which the system charges the fees. You can also have the system just calculate the fees.

With the tax code, you specify the tax rate used to tax the charges that are liable to tax.

You need the bank account details to post the expense from bank debit memos or charges. You can also specify interim accounts so that you can check whether the posted amounts were calculated correctly. Once you have checked the amounts, you can transfer the interim postings to the G/L account.



3.4.2.9. Bank accounting � Business Transactions� Bill of Exchange transactions � Bill of exchange receivable � Present bill of exchange receivable at bank � Maintain House Bank Details

Config-ID and Title: Maintain House Bank Details





Header Details

Description: Maintain House Bank Details


Menu Path: IMG � Financial Accounting (New)� Bank accounting � Business Transactions� Bill of Exchange transactions � Bill of exchange receivable � Present bill of exchange receivable at bank � Maintain House Bank Details


Active Settings

In this step, you define the details for the house bank. These details are dependent on the company code and house bank.

You can make specifications about the maturity of a bill of exchange, for example, the minimum days till maturity when presenting for collection.

You can also specify whether the amounts in a collection or in discounting are posted first to a subaccount or directly to a G/L account.



3.4.2.10. Bank accounting � Business Transactions� Bill of Exchange transactions � Bill of exchange receivable � Present bill of exchange receivable at bank � Enter Bank Charges

Config-ID and Title: Enter Bank Charges





Header Details

Description: Enter Bank Charges


Menu Path: IMG � Financial Accounting (New)� Bank accounting � Business Transactions� Bill of Exchange transactions � Bill of exchange receivable � Present bill of exchange receivable at bank � Enter Bank Charges


Active Settings

In this step, you define the fees for bill of exchange deposit for each house bank account and bill of exchange usage. You can define either a percentage or a fixed amount for the fees.

Remarks:-



3.4.2.11. Bank accounting � Business Transactions� Bill of Exchange transactions � Bill of exchange Payable � Create bill of exchange payable � Define Alternative Reconciliation Account for Bills of Exchange

Config-ID and Title: Define Alternative Reconciliation Account for Bills of Exchange





Header Details

Description: Define Alternative Reconciliation Account for Bills of Exchange


Menu Path: IMG � Financial Accounting (New)� Bank accounting � Business Transactions� Bill of Exchange transactions � Bill of exchange Payable � Create bill of exchange payable � Define Alternative Reconciliation Account for Bills of Exchange


Active Settings

In the following step, you make specifications which are necessary for posting bills of exchange.

If you wish to post and create bills of exchange with the payment program, you have to carry out further steps when you configure the payment program.

In this case, you define an account in which the bill of exchange payments are managed in the general ledger. In the case of bill of exchange payments, the posting is automatically made to this account instead of the normal payables account (reconciliation account).

Note


Remarks:-

Note



Following entry will create automatically if you use F110 transaction

1200 1 25 255001 "KAYPEE MECHANICAL INDIA PVT. 440.000,00

1200 2 39W 255001 "KAYPEE MECHANICAL INDIA PVT. 440.000,00-

1200 3 50 160745 BANKOF RAJ BARODA LC payable account 440.000,00-

1200 4 40 804000 LC Clearing Account 440.000,00

While FF67 manual bank statement using transaction type ZV20 bill of exchange payable honouring can be possible



3.4.2.12. Bank accounting � Business Transactions� Payment transactions � Payment handling � Bank clearing account determination� Define account determination

Config-ID and Title: Define Account Determination





Header Details

Description: Define Account Determination


Menu Path: IMG � Financial Accounting (New)� Bank accounting � Business Transactions� Payment transactions � Payment handling � Bank clearing account determination� Define account determination


Active Settings

In this activity you can define the bank sub-accounts to be posted to in the general ledger for payment transactions with bank accounts. The accounts are specified by house bank account, payent method and currency. If a currency is not specified, the account applies to all currencies.



3.4.2.13. Bank accounting � Business Transactions� Payment transactions � Manual bank statement � Create and Assign Business Transactions

Config-ID and Title: Create and Assign Business Transactions





Header Details

Description: Create and Assign Business Transactions


Menu Path: IMG � Financial Accounting (New)� Bank accounting � Business Transactions� Payment transactions � Manual bank statement � Create and Assign Business Transactions


Active Settings

In this step you store an indicator for each business transaction and allocate a posting rule to each business transaction. Several business transactions usually refer to the same posting rule.

Example

To differentiate business transactions, you assign to the "Credit memo, domestic" transaction an indicator different from the one for "Credit memo, foreign" or " Credit memo, rent". Since posting is the same for these transactions, you can allocate all three to one posting rule (credit memo).



3.4.2.14. Bank accounting � Business Transactions� Payment transactions � Manual bank statement � Define Posting Keys and Posting Rules for Manual Bank Statement

Config-ID and Title: Define Posting Keys and Posting Rules for Manual Bank Statement





Header Details

Description: Define Posting Keys and Posting Rules for Manual Bank Statement


Menu Path: IMG � Financial Accounting (New)� Bank accounting � Business Transactions� Payment transactions � Manual bank statement � Define Posting Keys and Posting Rules for Manual Bank Statement


Active Settings

In this activity you store the posting keys and posting rules for check deposit.

Under this node, you define all the posting rules you need for bank statement entry, including a key for each rule. The key determines the posting rules for general ledger and subledger accounting. The posting rule represents the business transactions recorded in the bank statement, such as:

Incoming check

Credit memo

Debit memo

Defining Posting Rules

In this step you define posting rules for each posting transaction you defined for bank statement entry. You specify posting rules for one or two posting areas, depending on whether a posting transaction concerns only the general ledger or also affects the sub ledger. Following are the posting rules created for VCON chart of account





3.4.2.15. Bank accounting � Business Transactions� Payment transactions � Manual bank statement � Define Variants for Manual Bank Statement

Config-ID and Title: Define Variants for Manual Bank Statement





Header Details

Description: Define Variants for Manual Bank Statement


Menu Path: IMG � Financial Accounting (New)� Bank accounting � Business Transactions� Payment transactions � Manual bank statement � Define Variants for Manual Bank Statement


Active Settings

In this step you can create separate account assignment variants for the manual bank statement in order to adapt the arrangement and/or the selection of account assignment fields to your company-specific requirements.

One variant is delivered as a default. It cannot be modified.

If you do not want to work with the standard variant, you can deactivate it. New variants must be activated after you create them

VID03 Videocon Final is a input variant created for Bank statement inputting for VIL



3.4.2.16. Bank accounting � Business Transactions� Cash Journal � Set up cash Journal

Config-ID and Title: Set up cash Journal





Header Details

Description: Set up cash Journal


Menu Path: IMG � Financial Accounting (New)� Bank accounting � Business Transactions� Cash Journal � Set up cash Journal


Active Settings

To set up a new cash journal for a company code, enter the appropriate data for the following fields:

• Company code

Company code in which you want to run the cash journal

• Number

Random number for cash journal identification; You can run several cash journals in each company code

• G/L account

G/L account to which you want to post the cash journal business transactions, usually the petty cash account.

• Currency

The currency in which you want to run the cash journal is defining. You are free to choose the cash journal currency.

The settings t hat have defined are as follows











3.4.2.17. Bank accounting � Business Transactions� Cash Journal � Create , Change , Delete Business Transactions

Config-ID and Title: Create, Change , Delete Business Transactions





Header Details

Description: Create , Change , Delete Business Transactions


Menu Path: IMG � Financial Accounting (New)� Bank accounting � Business Transactions� Cash Journal � Create , Change , Delete Business Transactions


Active Settings:

In this activity, you can create, change, and delete business transactions for the cash journal.



Following are the transaction type used

C Receipt from bank account

B Payment to bank account

R Revenue

E Expense

D Customer posting

K Vendor posting

Please note in the bellow transactions are created with GL assignment to facilitate the deposit of cheques in hand to specific bank and generate the list of cheques submitted to bank.

1100 8 B 161162 PRESENT CHQ ICICI306 CMS

1100 9 B 162712 PRESENT CHQ GTB-VIL089CMS

1100 10 B 161502 PRESENT CHQ CORP CMS



3.4.2.18. Bank accounting � Business Transactions� Cash Journal � Set Up print Parameters for Cash Journal

Config-ID and Title: Set Up print Parameters for Cash Journal





Header Details

Description: Set Up print Parameters for Cash Journal


Menu Path: IMG � Financial Accounting (New)� Bank accounting � Business Transactions� Cash Journal � Set Up print Parameters for Cash Journal


Active Settings:

In order to print the cash journal and the cash journal receipts, you have to set up the corresponding print program parameters per company code.



Asset Accounting



3.5. Asset accounting

3.5.1. Asset accounting� Organizational Structures

Config-ID and Title: Organizational Structures





Header Details

Description: Organizational Structures


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Organizational Structures


Active Settings:

In this section, you define the features of the FI-AA organizational objects (chart of depreciation, FI company code, asset class). All assets in the system have to be assigned to these organizational objects that you define. In this way,

• you can represent your organizational structures that are relevant to Asset Accounting in the system

• you can classify your assets according to asset accounting criteria.



3.5.2. Asset accounting� Organizational Structures� Copy Reference Chart of Depreciation / Depreciation Areas

Config-ID and Title: Copy Reference Chart of Depreciation / Depreciation Areas





Header Details

Description: Copy Reference Chart of Depreciation / Depreciation Areas


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Organizational Structures� Copy Reference Chart of Depreciation / Depreciation Areas


Active Settings: In this step, you define your charts of depreciation . The chart of depreciation is a list of depreciation areas arranged according to business and legal requirements

Chart of Depreciation VCON ( Videocon Chart of depreciation) is created for the Company VIL.



3.5.3. Asset accounting� Organizational Structures� Assign Chart of Depreciation to the Company Code

Config-ID and Title: Assign Chart of Depreciation to the Company Code





Header Details

Description: Assign Chart of Depreciation to the Company Code


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Organizational Structures� Assign Chart of Depreciation to the Company Code


Active Settings:

In Asset Accounting, you can only use company codes that have already been defined in Financial Accounting as being generally valid. In addition to the general FI data for a company code, you have to

make additional specifications that apply for Asset Accounting. One of the most important of these specifications is the assignment of a chart of depreciation to the company code.

In this step, you assign a chart of depreciation to each company code.



3.5.4. Asset accounting� Organizational Structures� Specify Number Assignment across Company Codes

Config-ID and Title: Specify Number Assignment across Company Codes





Header Details

Description: Specify Number Assignment across Company Codes


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Organizational Structures� Specify Number Assignment across Company Codes


Active Settings:

Specify Number Assignment across Company Codes

In the FI-AA module, you can assign the main asset number across company codes. Therefore, for every

company code, you can determine from which (other) company code number assignment is to be carried out. In this step, you define a cross-company code assignment of the main asset number. If you do not want a cross-company code number assignment, you do not need to define any system settings here.



3.5.5. Asset accounting� Organizational Structures� Asset Classes

Config-ID and Title: Asset Classes





Header Details

Description: Asset Classes


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Organizational Structures� Asset Classes


Active Settings:

The following step, you define your asset classes and the control parameters for asset classes. The most important control parameters are:

• the account determination

• the screen layout rule

The number interval that the system should use for assigning asset main numbers in the asset class



3.5.6. Asset accounting� Organizational Structures� Asset Classes� Specify Account Determination

Config-ID and Title: Specify Account Determination





Header Details

Description: Specify Account Determination


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Organizational Structures� Asset Classes� Specify Account Determination


Active Settings:

In this step, you define the account determinations for Asset Accounting (key and description). The key of

an account determination must be stored in the asset class. In this way, the account determination links an asset master record to the general ledger accounts to be posted for an accounting transaction using the asset class.

Account determination are created on the following basis



3.5.7. Asset accounting� Organizational Structures� Asset Classes� Create screen layout

Config-ID and Title: Create screen layout





Header Details

Description: Create screen layout


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Organizational Structures� Asset Classes� Create screen layout rules


Active Settings:

In this step, you create your screen layout rules. The screen layout specifies the status of the fields in the asset master record. You use the screen layout to determine if fields are required entry or optional entry fields, or if they are suppressed completely, for example.

In this step, you create only the keys and descriptions of the screen layout controls. You define the field group rules for the screen layouts themselves in the step Master Data.

You can enter a screen layout rule in one of two places: either in the part of the asset class valid in the entire client, or in the part of the asset class valid for the chart of depreciation. The screen layout rule is then valid either for all assets in the asset class, or for all assets in the asset class/chart of depreciation.

Following screen layout are used for our customizing setting purpose



3.5.8. Asset accounting� Organizational Structures� Asset Classes� Define Number Range Interval

Config-ID and Title: Define Number Range Interval





Header Details

Description: Define Number Range Interval


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Organizational Structures� Asset Classes� Define Number Range Interval


Active Settings:

In this step, you define the number ranges for this company code for assigning the main asset number. You

can roughly classify your asset portfolio using the number ranges.

In the asset class, you can specify the number range for the assignment of numbers for that asset class.

Following Number range series are used for our customization purpose





3.5.9. Asset accounting� Organizational Structures� Asset Classes� Define Asset Classes

Config-ID and Title: Define Asset Classes





Header Details

Description: Define Asset Classes


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Organizational Structures� Asset Classes� Define Asset Classes


Active Settings:

In this step, you define the asset classes. The asset class is the most important criteria for structuring fixed

assets from an accounting point of view. Every asset has to be assigned to exactly one asset class. The asset class is used to assign the assets (and their business transactions) to the correct general ledger accounts. Several asset classes can use the same account assignment. You can see that it is possible to make finer distinctions at the level of the asset class than at the level of the general ledger accounts. The most important tasks of the asset classes are:

• the assignment of default values when creating assets (particularly depreciation terms)

• the grouping of assets for reporting purposes

You define the asset classes in the system in a series of steps. The asset class is structured in three parts:

• control parameters

• default values for general master data

• default values for depreciation terms in the chart of depreciation

You can assign depreciation terms to an asset class for any number of charts of depreciation. This makes it possible to manage an asset class catalog that is valid for an entire corporate group, independent of the country-specific charts of depreciation.

In this step, you define the asset classes and their control parameters. In further steps, you add further to the asset classes by supplying default values for certain logical field groups in the asset master record.

Following customization settings have been done for each asset class and the screen shot for the each asset class are as follows



For the following Asset class, one to one “account determination Key” are not created, but are maintained as below:-

Asset class Account determination key maintained

100201 MOULDS (LOCAL) 100200 PLANT & MACHINERY

100202 P&M IMPORTED 100200 PLANT & MACHINERY

100203 MOULDS (IMPORTED) 100200 PLANT & MACHINERY

100301 BUILDING NON FACTORY 100300 BUILDING

100601 VEHICL EXCEPT TRUCKS 100600 VEHICLES

101300 CAPITAL WIP THRO PM ORDER 101200 CAPITAL WIP



3.5.10. Asset accounting� Organizational Structures� Asset Classes� Specify Chart – of – Dep. – Dependent Screen Layout / Acct Assignment

Config-ID and Title: Specify Chart – of – Dep. – Dependent Screen Layout / Acct Assignment





Header Details

Description: Specify Chart – of – Dep. – Dependent Screen Layout / Acct Assignment


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Organizational Structures� Asset Classes� Specify Chart – of – Dep. – Dependent Screen Layout / Acct Assignment


Active Settings:

Generally, the control specification (the screen layout and the account determination) for the asset class applies throughout the client, that is, for all charts of depreciation. It is therefore sufficient to make control specifications once per asset class.

You only need to carry out this step, if, contrary to the usual case, you want these control specifications to be country-specific (that is, different depending on the chart of depreciation). The system then uses the entries you make here depending on the chart of depreciation in the given company code. The system then ignores the control specifications in the asset class that are independent of the chart of depreciation.

This setting is not required for VIL.



3.5.11. Asset accounting� Integration with the General Ledger

Config-ID and Title: Integration with the General Ledger





Header Details

Description: Integration with the General Ledger


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Integration with the General Ledger


Active Settings:

The system settings and entries you make in this section are required for the integration of Asset Accounting with the General Ledger:

• Depreciation areas that post depreciation/APC automatically to the General Ledger

• G/L accounts that are relevant for Asset Accounting (reconciliation accounts and accounts that are posted using batch input)

• Screen layout controls for G/L accounts

• Default input tax indicator for transactions not subject to tax

• Specifications for periodic posting of depreciation to the General Ledger



3.5.12. Asset accounting� Integration with the General Ledger � Define How Depreciation Areas Post to General Ledger

Config-ID and Title: Define How Depreciation Areas Post to General Ledger





Header Details

Description: Define How Depreciation Areas Post to General Ledger


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Integration with the General Ledger � Define How Depreciation Areas Post to General Ledger


Active Settings:

In this step, you specify the depreciation areas that post their APC transactions and/or depreciation to the general ledger.

The system can post the APC transactions of one depreciation area to the general ledger online automatically. Usually this is the book depreciation area 01.

For depreciation purpose depreciation area 01 for Book depreciation and depreciation area 15 for IT Depreciation are used.

Post to G/L account

Specifies if changes to balance sheet values and/or depreciation from this depreciation area are to be posted to the general ledger, and how they are to be posted.

Book depreciation area 01 posts APC transactions automatically to the general ledger online and depreciation automatically to the general ledger (using batch), since the Post to GL 1 is maintained.



3.5.13. Asset accounting� Integration with the General Ledger � Assign G/L Accounts

Config-ID and Title: Assign G/L Accounts





Header Details

Description: Assign G/L Accounts


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Integration with the General Ledger � Assign G/L Accounts


Active Settings:

In this step, you specify the balance sheet accounts and the depreciation accounts for Asset Accounting. List of G/L accounts assigned for balance sheet and depreciation are as follows

C:\Documents and Settings\i029638\Desktop\Account determination.xls



3.5.14. Asset accounting� Integration with the General Ledger � Specify Posting Key

Config-ID and Title: Specify Posting Key





Header Details

Description: Specify Posting Key


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Integration with the General Ledger � Specify Posting Key


Active Settings:

In this activity you define posting keys which are used for automatic postings when posting to fixed asset accounts.

Standard SAP Defined posting Keys are used for asset Accounting



3.5.15. Asset accounting� Integration with the General Ledger � Assign Input Tax Indicator for Non – Taxable Acquisitions

Config-ID and Title: Assign Input Tax Indicator for Non – Taxable Acquisitions





Header Details

Description: Assign Input Tax Indicator for Non – Taxable Acquisitions


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Integration with the General Ledger � Assign Input Tax Indicator for Non – Taxable Acquisitions


Active Settings:

In this step, you specify an input tax indicator per company code. The system then uses this indicator when you post acquisitions that are not subject to tax, but which are posted to accounts that are tax-relevant.



3.5.16. Asset accounting� Integration with the General Ledger � Specify Financial Statement Version for Asset Reports

Config-ID and Title: Specify Financial Statement Version for Asset Reports





Header Details

Description: Specify Financial Statement Version for Asset Reports


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Integration with the General Ledger � Specify Financial Statement Version for Asset Reports


Active Settings:

In this step, you determine, per depreciation area, which financial statement version the system is to use as a default. This default applies when the financial statement version is contained in the sort version used for a given report.

Book Depreciation 01 and IT depreciation 15 are assigned to Financial Statement Version MCFL



3.5.17. Asset accounting� Integration with the General Ledger � Post Depreciation to General Ledger

Config-ID and Title: Post Depreciation to General Ledger





Header Details

Description: Post Depreciation to General Ledger


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Integration with the General Ledger � Post Depreciation to General Ledger


Active Settings:

Asset depreciation is a two step process in the system.

1. First, the system determines the planned depreciation values for the fiscal year for each asset. 2. Posting these values to the expense accounts in Financial Accounting is carried out using batch input. You have to initiate this batch input posting. It is one of the periodic processes in the system.



3.5.18. Asset accounting� Integration with the General Ledger � Post Depreciation to General Ledger � Specify document type for posting of Depreciation

Config-ID and Title: Specify document type for posting of Depreciation





Header Details

Description: Specify document type for posting of Depreciation


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Integration with the General Ledger � Post Depreciation to General Ledger � Specify document type for posting of Depreciation


Active Settings:

In this processing step you determine the document type for each company code for posting depreciation.

Standard SAP defined document type is used for Depreciation posting (AF)



3.5.19. Asset accounting� Integration with the General Ledger � Specify Intervals and Posting Rules

Config-ID and Title: Specify Intervals and Posting Rules





Header Details

Description: Specify Intervals and Posting Rules


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Integration with the General Ledger � Specify Intervals and Posting Rules


Active Settings:

In this step, you define the posting rules for the depreciation areas that post depreciation values to Financial Accounting. You define the posting cycle (how often depreciation is posted) and the account assignment rules for the depreciation posting run.

Depreciation posting is on monthly basis.



3.5.20. Asset accounting� Integration with the General Ledger � Additional Account Assignment Objects � Activate Account Assignment Objects

Config-ID and Title: Activate Account Assignment Objects





Header Details

Description: Activate Account Assignment Objects


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Integration with the General Ledger � Additional Account Assignment Objects � Activate Account Assignment Objects


Active Settings:

In this step, you make settings for additional account assignment objects (for example, cost center, investment order) during posting in Asset Accounting.



3.5.21. Asset accounting� Integration with the General Ledger � Additional Account Assignment Objects � Specify Account Assignment Types for Account Assignment Objects

Config-ID and Title: Specify Account Assignment Types for Account Assignment Objects





Header Details

Description: Specify Account Assignment Types for Account Assignment Objects


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Integration with the General Ledger � Additional Account Assignment Objects � Specify Account Assignment Types for Account Assignment Objects


Active Settings:

The possible account assignment types for account assignment objects are: APC balance sheet posting or account assignment of depreciation. In this step, you assign account assignment types to the account assignment objects. These assignments are dependent on

• Company code

• Depreciation area

• Transaction type

Cost center is made active. And the setting is made as follows



3.5.22. Asset accounting� Valuation

Config-ID and Title: Valuation





Header Details

Description: Valuation


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Valuation


Active Settings:

In this section, you make all configurations that have to do with the valuation of fixed assets. The following basic functions are available in the R/3 FI-AA System for the valuation of assets:

• You can define country-specific charts of depreciation. You can define and manage all valuation

and depreciation parameters in the chart of depreciation. In each chart of depreciation, you can calculate asset values in parallel for different purposes using depreciation areas.

You can modify the periods in the FI fiscal year to meet the needs of depreciation calculation



3.5.23. Asset accounting� Valuation� Set Chart of Depreciation

Config-ID and Title: Set Chart of Depreciation





Header Details

Description: Set Chart of Depreciation


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Valuation � Set Chart of Depreciation


Active Settings:

You only need to carry out the following step if you have created more than one chart of depreciation. Some of the definitions in the following Customizing steps depend on the chart of depreciation you want to work with. If you have recently created several charts of depreciation (NOT standard charts of depreciation), you therefore need to specify the chart of depreciation you want to configure. The work you do in the system after this point will affect that chart of depreciation. The system therefore determines the chart of depreciation that you are working on according to the following logic:

• If you have created only one chart of depreciation, the system automatically uses the existing chart

VCON Chart of depreciation is created and which is used for all company codes of VIL



3.5.24. Asset accounting� Valuation� Depreciation Areas

Config-ID and Title: Depreciation Areas





Header Details

Description: Depreciation Areas


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Valuation � Depreciation Areas


Active Settings:

When you create a chart of depreciation, the SAP system takes over the depreciation areas from the

reference chart of depreciation in the new chart of depreciation. In addition to the depreciation areas taken over from the reference chart of depreciation, you can also create your own depreciation areas. You need to copy an existing depreciation area in order to create your own depreciation area.

You define the characteristics of your depreciation areas in this step. It is important to specify the relationships between the depreciation areas in regard to posting values and depreciation terms.



3.5.25. Asset accounting� Valuation� Depreciation Areas� Define Depreciation Areas

Config-ID and Title: Define Depreciation Areas





Header Details

Description: Define Depreciation Areas


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Valuation � Depreciation Areas � Define Depreciation Areas


Active Settings:

In the following activities, you will make the global settings for the central objects in Financial Accounting (i.e. company code, fiscal year document etc.).

Depreciation Area 01 and 15 are being used for our company code

Note:- THIS CUSTOMISATION NEEDS TO BE RELOOKED FOR BOOK DEPRECIATION AREA 01 BASED ON DECISION OF “VIL”THAT “NO DEPRECIATION RUN AND POSTING OF DEPRECIATION”

WITH POST TO GL CODE “6 AREA POSTS ONLY APC DIRECTLY” HAS TO INTRODUCED







3.5.26. Asset accounting� Valuation� Depreciation Areas� Specify Transfer of APC Values

Config-ID and Title: Specify Transfer of APC Values





Header Details

Description: Specify Transfer of APC Values


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Valuation � Depreciation Areas � Specify Transfer of APC Values


Active Settings:

The standard system copies the asset balance sheet values from depreciation area 01 to all other depreciation areas during posting. (The only exceptions to this rule are areas for revaluation and for investment support, as well as derived depreciation areas.) Therefore, you only need to carry out this step if you want to copy posting values from a different depreciation area, not depreciation area 01.

In this step, you define transfer rules for the posting values of depreciation areas. These transfer rules let you ensure that certain depreciation areas have identical asset values.



3.5.27. Asset accounting� Valuation� Depreciation Areas� Specify Transfer of Depreciation Terms

Config-ID and Title: Specify Transfer of Depreciation Terms





Header Details

Description: Specify Transfer of Depreciation Terms


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Valuation � Depreciation Areas � Specify Transfer of Depreciation Terms


Active Settings:

In this step, you define transfer rules for the depreciation terms of the depreciation areas. Using these transfer rules, you can determine that depreciation areas copy the depreciation terms from other areas. (optional or mandatory takeover). You then do not have to/cannot maintain depreciation terms for the copying depreciation areas in the asset master record. In this way, you can ensure that certain depreciation areas are uniformly depreciated.



3.5.28. Asset accounting� Valuation� Depreciation Areas� Determine Depreciation Areas in the Asset Class

Config-ID and Title: Determine Depreciation Areas in the Asset Class





Header Details

Description: Determine Depreciation Areas in the Asset Class


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Valuation � Determine Depreciation Areas in the Asset Class


Active Settings:

Generally, the assets in an asset class use the same depreciation terms (depreciation key, useful life). Therefore, you do not have to maintain the depreciation terms in the asset master record. Instead, they can be default values from the asset class.

In this step, you determine the depreciation terms that are to be used in your asset classes. Depending on the definition in the screen layout control used, these depreciation terms are offered either as optional or mandatory defaults when you create an asset.

For each asset class, you can maintain as many charts of depreciation with their depreciation areas as you need. This allows you to use the asset class in all countries belonging to the client.

Default Dep Key Asset class

Book dep. IT dep Asset class

100000 GOODWILL

100100 LAND

IN5 100200 PLANT & MACHINERY

IN5 100201 MOULDS (LOCAL)

IN5 100202 P&M IMPORTED

IN5 100203 MOULDS (IMPORTED)

IN1 100300 BUILDING FACTORY

IN1 100301 BUILDING NON FACTORY

IN3 100400 FURNITURE & FIXTURE

100500 PATENT, TRADE MARK

IN4 100600 VEHICLES

IN4 100601 VEHICL EXCEPT TRUCKS

IN8 100700 COMPUTERS

IN5 100800 ELECTRICAL INSTALLAT

IN5 100900 OFFICE & FACTORY EQU

IN5 101000 E.S.P. A/C

IN5 101100 FURNACE

101200 CAPITAL WIP

101300 CAPITAL WIP THRO PM ORDER 101500 GROUP ASSET FOR IT



3.5.29. Asset accounting� Valuation� Depreciation Areas� Amount Specifications (Company Code/Depreciation Area

Config-ID and Title: Amount Specifications (Company Code/Depreciation Area





Header Details

Description: Amount Specifications (Company Code/Depreciation Area)


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Valuation � Amount Specifications (Company Code/Depreciation Area


Active Settings:

In the following step, make the following entries for the calculation of depreciation and/or net book value per company code/depreciation area:

• rules for rounding

• memo value

• changeover amount



3.5.30. Asset accounting� Valuation� Depreciation Areas� Specify Max Amount for Low Value Assets + Asset Classes

Config-ID and Title: Specify Max Amount for Low Value Assets + Asset Classes





Header Details

Description: Specify Max Amount for Low Value Assets + Asset Classes


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Valuation � Specify Max Amount for Low Value Assets + Asset Classes


Active Settings:

In this step, you determine the maximum amount for low-value assets (LVAs). You enter a maximum amount per company code or per depreciation area. The system checks this maximum amount during every acquisition posting, providing the corresponding LVA indicator is set in the asset class.



3.5.31. Asset accounting� Valuation� Depreciation Areas� Amount Specifications (Company Code/Depreciation Area � Specify Rounding of Net Book Value and / or Depreciation

Config-ID and Title: Specify Rounding of Net Book Value and / or Depreciation





Header Details

Description: Specify Rounding of Net Book Value and / or Depreciation


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Valuation � Amount Specifications (Company Code/Depreciation Area � Specify Rounding of Net Book Value and / or Depreciation


Active Settings:

In this step, you define rounding specifications for net book values at the end of the year, and for automatically determined depreciation. These specifications are for each depreciation area and company code

The standard system rounds net book values to whole currency units by means of depreciation. The same thing has been retained for our processing also.



3.5.32. Asset accounting� Valuation� Fiscal Year

Config-ID and Title: Fiscal Year





Header Details

Description: Fiscal Year


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Valuation � Fiscal Year


Active Settings:

In this section, you make entries for the fiscal year in Asset Accounting. In particular, you can define the FI (General Ledger) fiscal year with different periods for calculating depreciation in Asset Accounting.



3.5.33. Asset accounting� Valuation� Fiscal Year� Fiscal year Variants

Config-ID and Title: Fiscal year Variants





Header Details

Description: Fiscal year Variants


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Valuation � Fiscal Year� Fiscal year Variants


Active Settings:

The fiscal year version defines the number and relation to the calendar of the depreciation periods in the

fiscal year in Asset Accounting. Asset Accounting generally uses the same fiscal year version as Financial Accounting (general ledger). In this case, the depreciation periods of Asset Accounting correspond to the posting periods of Financial Accounting (without special periods). The system therefore automatically defaults the fiscal year version of FI-GL when you define the FI-AA system settings for a company code. You do not need to make any system settings in this section if your depreciation periods and G/L posting periods are identical.

In some cases, however, the G/L posting periods are not suitable for determining depreciation in Asset Accounting. In this step, you define the FI-AA-specific fiscal year versions when this is the case.

You can specify your own fiscal year version in the following implementation activities

• in the FI-AA definition of the company code

• below the company code for each FI-AA depreciation area



3.5.34. Asset accounting� Valuation� Group Assets

Config-ID and Title: Group Assets





Header Details

Description: Group Assets


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Valuation � Group Assets


Active Settings:

As a general rule, the system calculates depreciation at the level of individual assets. Certain types of calculation needs or tax requirements make it necessary, however, to calculate depreciation at a higher level. For this purpose, you can group assets in the FI-AA system together into so-called group assets. You can group assets together per depreciation area to form group assets.



3.5.35. Asset accounting� Valuation� Group Assets� Specify Depreciation Area for Group Assets

Config-ID and Title: Specify Depreciation Area for Group Assets





Header Details

Description: Specify Depreciation Area for Group Assets


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Valuation � Group Assets � Specify Depreciation Area for Group Assets


Active Settings:

In this step, you determine the depreciation areas that you also want to manage on group asset level. In

these depreciation areas, it is then possible to make an assignment to a group asset. You make this assignment in the specifications for the depreciation area in the asset master record. When you post an acquisition to this kind of asset, the system duplicates the line items from this depreciation area on the given group asset.

Following customizing setting is made in the group asset area.



3.5.36. Asset accounting� Valuation� Group Assets� Specify Asset Classes for Group Assets

Config-ID and Title: Specify Asset Classes for Group Assets





Header Details

Description: Specify Asset Classes for Group Assets


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Valuation � Group Assets � Specify Asset Classes for Group Assets


Active Settings:

It is basically possible to use all asset classes for creating group assets. However, under certain

circumstances, you need to set aside particular asset classes for use in conjunction with group assets. These asset classes are then reserved solely for group assets, and are not allowed to be used for normal assets.

Asset Class 101500 is created IT Block purpose. This asset class is enabled for Group asset purpose



3.5.37. Asset accounting� Depreciation

Config-ID and Title: Depreciation





Header Details

Description: Depreciation


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Depreciation


Active Settings:

In the following section, you make system settings for fixed asset depreciation.



3.5.38. Asset accounting� Depreciation� Ordinary Depreciation

Config-ID and Title: Ordinary Depreciation





Header Details

Description: Ordinary Depreciation


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Depreciation� Ordinary Depreciation


Active Settings:

In this section, you define system settings for determining and posting ordinary depreciation



3.5.39. Asset accounting� Depreciation� Ordinary Depreciation� Determine Depreciation Areas

Config-ID and Title: Determine Depreciation Areas





Header Details

Description: Determine Depreciation Areas


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Depreciation� Ordinary Depreciation� Determine Depreciation Areas


Active Settings:

In this step, you determine the depreciation areas in which you want to manage ordinary depreciation. This specification means that this value type is allowed in the depreciation area (that is, the system does not issue an error message when you enter corresponding depreciation terms in the asset master record).



3.5.40. Asset accounting� Depreciation� Valuation Methods

Config-ID and Title: Valuation Methods





Header Details

Description: Valuation Methods


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Depreciation� Valuation Methods


Active Settings:

Depreciation calculation in the FI-AA system is not hard-coded, but is instead based on a flexible method of using keys to define the calculation. Therefore, it is possible to represent many different depreciation terms using correspondingly defined calculation keys and calculation methods.

Calculation keys and calculation methods for the most common types of depreciation are supplied in the system.

In the following section, we define our own calculation keys and calculation methods for the automatic calculation of depreciation.



3.5.41. Asset accounting� Depreciation� Valuation Methods� Depreciation Key

Config-ID and Title: Depreciation Key





Header Details

Description: Depreciation Key


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Depreciation� Valuation Methods� Depreciation Key


Active Settings:

Depreciation keys contain the calculation methods for depreciation calculation and parameters that

control

• Ordinary depreciation

• Special depreciation

• Scrap value (cutoff value)

• Calculation of interest

You can enter a separate depreciation key for each depreciation area in the asset master record.



3.5.42. Asset accounting� Depreciation� Valuation Methods� Depreciation Key� Calculation Methods

Config-ID and Title: Calculation Methods





Header Details

Description: Calculation Methods


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Depreciation� Valuation Methods� Depreciation Key � Calculation Methods


Active Settings:

In this step, you define calculation methods that are assigned to a depreciation key.

Chart-of-depreciation-independent calculation methods:

• Base methods

Chart-of-depreciation-dependent calculation methods:

• Declining-balance methods

• Maximum amount methods

• Multi-level methods

• Period control methods



3.5.43. Asset accounting� Depreciation� Valuation Methods� Depreciation Key� Calculation Methods� Define Base Methods

Config-ID and Title: Define Base Methods





Header Details

Description: Define Base Methods


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Depreciation� Valuation Methods� Depreciation Key � Calculation Methods� Define Base Methods


Active Settings:

In this step, you maintain base methods. Base methods are valid in all charts of depreciation. You assign base methods to depreciation keys. Following Base methods are used which are assigned in the depreciation Keys 0002 : Ordinary: no automatic depreciation



VIDI created for Videocon

IND1 : Base Method for IT Block Purpose



3.5.44. Asset accounting� Depreciation� Valuation Methods� Depreciation Key� Calculation Methods� Define Multi Level Methods

Config-ID and Title: Define Multi Level Methods





Header Details

Description: Define Multi Level Methods


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Depreciation� Valuation Methods� Depreciation Key � Calculation Methods� Define Multi Level Methods


Active Settings:

In this step, you define multi-level methods. You then assign them to depreciation keys. Each level represents a validity period for a given percentage rate.

List of Multilevel Method used are as follows





3.5.45. Asset accounting� Depreciation� Valuation Methods� Depreciation Key� Calculation Methods� Maintain Period Control Methods

Config-ID and Title: Maintain Period Control Methods





Header Details

Description: Maintain Period Control Methods


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Depreciation� Valuation Methods� Depreciation Key � Calculation Methods� Maintain Period Control Methods


Active Settings:

In this step, you maintain period control methods. You then assign them to depreciation keys. For IT purpose only Standard SAP Defined Period Control IN1 is used.



3.5.46. Asset accounting� Depreciation� Valuation Methods� Depreciation Key� Default Values

Config-ID and Title: Default Values





Header Details

Description: Default Values


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Depreciation� Valuation Methods� Depreciation Key � Default Values


Active Settings:

In this step, you maintain default values for depreciation keys:

• At the level of company codes and depreciation areas

• At the company code level



3.5.47. Asset accounting� Depreciation� Valuation Methods� Depreciation Key� Maintain Depreciation Key

Config-ID and Title: Maintain Depreciation Key





Header Details

Description: Maintain Depreciation Key


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Depreciation� Valuation Methods� Depreciation Key � Maintain Depreciation Key


Active Settings:

In this step, you maintain depreciation keys by assigning calculation methods to them. List of Depreciation Keys used for Book Depreciation 01 calculation are as follows







For IT Block purposes following Depreciation Key are used

For the IT BLOCK PURPOSE following Depreciation Keys are used and the customization settings are as follows













3.5.48. Asset accounting� Depreciation� Valuation Methods� Period Control

Config-ID and Title: Period Control





Header Details

Description: Period Control


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Depreciation� Valuation Methods� Period Control


Active Settings:

In this step, you define the time periods that are to be used for determining the start and end of depreciation for acquisitions and retirements (period control)..

Note

SAP provides the most commonly used period controls (such as the first year convention). In general, you do not need to make any settings in this step.



3.5.49. Asset accounting� Depreciation� Valuation Methods� Period Control� Maintain Period Control

Config-ID and Title: Maintain Period Control





Header Details

Description: Maintain Period Control


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Depreciation� Valuation Methods� Period Control � Maintain Period Control


Active Settings:

The system determines the start or end of depreciation based on the asset value date of a transaction (of the acquisition or retirement) using the period control. The period control is therefore an important part of

the depreciation key. You can enter a separate period control for each period control method of the depreciation key for the following transaction types:

• Acquisitions

• Subsequent acquisitions in later years

• Retirements

• Transfers

In this step you can define new rules if the standard period controls are not sufficient for your installation. You define the calendar assignment for newly defined or copied period controls in a further step.

For our customizing purpose for Book Depreciation area 01 period control is not required because Depreciation is calculated on No. of day basis. So this period control method will not be required. Only for IT Depreciation purpose Period control has to be defined. Standard SAP Defined Customizing value is used.



3.5.50. Asset accounting� Depreciation� Valuation Methods� Period Control� Define Calendar Assignments

Config-ID and Title: Define Calendar Assignments





Header Details

Description: Define Calendar Assignments


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Depreciation� Valuation Methods� Period Control � Define Calendar Assignments


Active Settings:

The system uses the assignment rules in the period control to establish the connection between the asset value date of an asset acquisition or retirement and depreciation periods or fiscal year periods. The assignment rules determine the relationship between posting intervals and periods in the given fiscal year version. These entries have to be changed in the following cases:

• You use period control rules you defined yourself.

• You change the definition of the periods in the fiscal year version in Financial Accounting.

Standard SAP defined rules have been retained for the IT purpose calculation. Customization details as follows

Since the fiscal year variant is used for VIL is V3 and standard Key for period control in transactions is used.

The system determines the starting or ending period for depreciation based on the asset value date of the transaction and the specifications in the period control.





3.5.51. Asset accounting� Depreciation� Valuation Methods� Period Control� Further Settings� Define the Cut off Value Key

Config-ID and Title: Define the Cut off Value Key





Header Details

Description: Define the Cut off Value Key


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Depreciation� Valuation Methods� Period Control � Further Settings� Define the Cut off Value Key


Active Settings:

For certain types of valuation, it makes sense, or is legally required, that you end depreciation when a certain value is reached. You can enter an absolute scrap value in the asset master record. Or you can enter a percentage scrap value (cut-off value) in the calculation key.

In this step, you define the calculation key for automatically determining scrap values. For each calculation key, you can specify

• the percentage of the depreciation base that should be used as the cut-off value percentage

• whether the cut-off value percentage should be deducted at the start or the end of the calculation of depreciation

• at what point in time the system should start calculating the validity period

You can enter several cut-off percentages for each scrap value key. You can define the cut-off percentages/levels per acquisition year, and the validity period can be of any length.

Here only 95% of the value of the asset has to be depreciated. So cut off value key has been created with 5% as scrap. Following key is used for cut off value.





3.5.52. Asset accounting� Master Data � Screen Layout

Config-ID and Title: Screen Layout





Header Details

Description: Screen Layout


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Master Data � Screen Layout


Active Settings:

In this step, you define the screen layout control for asset master data. The screen layout control contains the specifications for the field groups in the asset master record. You enter the screen layout control in the asset class. This method allows you to structure the master record individually for each asset class.

Following Master Screen layout settings are made and the details as follows



3.5.53. Asset accounting� Master Data � Screen Layout� Define Screen Layout for Asset Depreciation Areas

Config-ID and Title: Define Screen Layout for Asset Depreciation Areas





Header Details

Description: Define Screen Layout for Asset Depreciation Areas


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Master Data � Screen Layout� Define Screen Layout for Asset Depreciation Areas


Active Settings:

In this step you define the screen layout control for the depreciation terms (depreciation key, useful life, and so on) in the asset master record. This screen layout control is similar to the one for the general master data section of the asset master record. You can use it in a similar way to control the features of the depreciation areas in the aset master record. It is possible to make different specifications in each depreciation area.



3.5.54. Asset accounting� Master Data � Screen Layout� Specify Tab Layout for Asset Master Record

Config-ID and Title: Specify Tab Layout for Asset Master Record





Header Details

Description: Specify Tab Layout for Asset Master Record


Menu Path: IMG � Financial Accounting (New)� Asset accounting� Master Data � Screen Layout� Specify Tab Layout for Asset Master Record


Active Settings:

Because of the large number of fields that it can contain, the asset master record in the Asset Accounting (FI-AA) component is divided up into several tab pages (that look like index cards). In this step, you define the layout of these tab pages (the tab layout).

You can specify which tab pages are seen for each asset class (or if needed, by chart of depreciation within the asset class). For each tab page, you can specify which field groups appear in which positions on the tab page.

Standard SAP defined Layouts are used

Date post:	01-Jul-2015
Category:	Documents
Upload:	sureshvasudeva
View:	324 times
Download:	12 times