1> Basic Configuration to start posting entries in SAP. To give demo to the Client.

2> Accounting Entries in FI-SD process flow along with Tax entries, And CIN Tax entries if possible.

3> If we have given Advance Payment of 35 Rupees, and the total Invoice is 100 Rupees, Thru APP how we can clear the payments. What wuld be the posting entries and how much the APP will clear. 4 Is it possible to pay thru APP some payments by BANK and some Payments by Cheque.

5> Why sometimes SAP gives errors for some Document Number and very next Movement it can find the same document Number. Example. DocNumber1 is found. DocNumber2 is not Found. DocNumber3 is Found. And immediately we can find DocNumber2 also. Then why did sap gave error in finding DocNumber2 previously. As I know SAP does not archives single document. is this a database problem. 6> How are special GL A/c configured ?

6. what is credit control management. how to do credit control how to evaluate foreign currency? 7. How to view trial balance how to prepare balance sheet how to carry forward balceces of G/L ACCOUNTS, VENDORS, CUSTOMERS AND FIXED ASSETS 8. what is the data associated while uploding data using lsmw? 9. what is withholding tax? when we use withholding tax? what are the procedure in steps for calculating tds.. 10. We had two controling areas with different Fiscal years. A year later we changed the FY so both Controlling areas now have same fiscal year. we want to get rid of one controlling area and bring all the company codes into one controlling area. What is the fastest and safest way to do it? 12. Wt is BDC..?? 13. With out invoice ceation can we delivery the stock to Customer. If Yes - How , What is the process. ( when the credit limit exceeds) 14. What is meant by Out Put Control? 15. How to run manual depreciation. .? 16. In APP, what is Evalute option? 17. What are the disadvantages of Business Area. 18. What is Born in sale?

Depreciation Keys?
Ans)Depreciation keys = depreciation method + depreciation rate. depreciation method could be slm(straight line method), wdv(written down value method)etc depreciation rate is nothing but the percentate like 5%, 6%,etc hence dep key = slm + 5 % A Depreciation key can be considered as a box which houses all the depreciation methods You are aware that every fixed asset keeps losing value as time progresses and the loss of value is called as depreciation. Depreciation Keys are pre-defined mathematical functions which perform number crunching so as to reduce the value of asset (usually) with the passage of time. A Depreciation Key is a bundle of various methods of standardized depreciation. A depreciation key contains a. Base method (such as straight line depreciation etc.) b. Declining Balance Method ( more affectionately known as WDV method, Written Down Value Method) this method includes both the declining balance method sum of the years digits method. the normal declining balance method of dep multiplies the straight line % by a given factor usually the factor would be 2/2.5/3 which means that your depreciation would be 2/2.5/3 times more under this method as compared to SLM this is just to accelerate the initial depreciation so that you have earmarked a sizable portion of your initial profits. c. Maximum Amount Method ( an arbitrary pre-defined amount up to which depreciation of an asset can be carried out) d. Multi-level method ( which is a mixed bag of one or more of the aforesaid methods ) . Usually it has been mathematically proved that the Declining Balance Method cannot be effective in writing off the value of an asset in full ( viz. reduce to zero balance) in a finite period of time. In order to avoid this complication, you can use multi-level method which effects a change-over from declining balance method to straight line method under certain conditions pre-defined in the depreciation methods/ keys) each level represents a validity period for a given percentage rate.

e. Period Control Method ( this tells you the date on which capitalization / de-activation, start of depreciation could commence with regard to asset acquisition, additions to it, retirement and transfer ). All these depreciation methods are bundled into a depreciation key which is assigned to the asset master record. in the class field of dep key we select the actual method There are many depreciation keys available and you can create them too. Usually they are country-specific. Assignment of a suitable depreciation key to the asset master helps in the fair valuation of assets and profits / losses ( through fair estimation of depreciation of assets).

4.6 ASSETS ACCOUNTING (FI-AA)

Depending on business requirements, the following steps may be configured for assets accounts.

Table 4.6.
Function Name and Path Minimum Configuration: Check Country-specific Settings: IMG Financial Accounting Assets Accounting Organizational Structures Check Country Specific Settings Copy Reference Chart of Dep./Dep. Areas: IMG Financial Accounting Assets Accounting Organizational Structures Copy Reference Chart of Dep./Dep. Areas T-code OA08

EC08

Table 4.6.
Function Name and Path Specify Description: IMG Financial Accounting Assets Accounting Organizational Structures Copy Reference Chart of Depreciation/Dep. Area Copy/Delete Depreciation Areas: IMG Financial Accounting Assets Accounting Organizational Structures Copy Reference Chart of Depreciation/Dep. Area Assign COD to Co. Code: IMG Financial Accounting Assets Accounting Organizational Structures Chart of Depreciation to Co Code Define Number Range Interval: IMG Financial Accounting Assets Accounting Organizational Structures Assets Class Define Number Range Interval Specify Account Determination: IMG Financial Accounting Assets Accounting Organizational Structures Assets Class Specify Account Determination Define Assets Class: IMG Financial Accounting Assets Accounting Organizational Structures Assets Class Define Assets Class Define How Depreciation Areas Post to General Ledger: IMG Financial Accounting Assets Accounting Integration with General Ledger Define how depreciation areas post to general ledger T-code EC08

OADB

OAOB

AS08

SPRO

OAOA

OADX

Table 4.6.
Function Name and Path Assign Input Tax Indicators for Non-taxable Acquisitions: IMG Financial Accounting Assets Accounting Integration with General Ledger Assign input tax indicators for Non-Taxable Acquisitions Specify Fin Stat Version for Assets Reporting: IMG Financial Accounting Assets Accounting Integration with General Ledger Specify Fin. Stat. version for assets reporting Specify Document Types for Posting Depreciation: IMG Financial Accounting Assets Accounting Integration with General Ledger Post depreciation to the general ledger Specify document types for posting of dep. Specify Intervals and Posting Rule: IMG Financial Accounting Assets Accounting Integration with General Ledger Post depreciation to the general ledger Specify intervals and posting rule Determine Depreciation Areas in the Assets Class: IMG Financial Accounting Assets Accounting Valuation Determine Depreciation areas in the assets class Specify Maximum Amount for Low Value Assets + Assets Class: IMG Financial Accounting Assets Accounting Valuation Amount Specification (Company Code/Chart of Depreciation) Specify Max. Amount for low value assets + Assets Class Specify the rounding of net book value and/or depreciation: IMG Financial Accounting Assets T-code OBCL

OAYN

OA71

OAYR

OAYZ

OAY2

OAYO

Table 4.6.
Function Name and Path Accounting Valuation Amount Specification (Company Code/Chart of Depreciation) Specify the rounding of net book value and/or depreciation Determine Depreciation Areas: IMG Financial Accounting Assets Accounting Depreciation Ordinary Depreciation Determine Depreciation Areas Define Base Method: IMG Financial Accounting Assets Accounting Depreciation Valuation Method Depreciation Key Calculation Method Define Base Methods Define Decline Balance Method: IMG Financial Accounting Assets Accounting Depreciation Valuation Method Depreciation Key Calculation Method Define Decline Balance Method Maintain Period Control: IMG Financial Accounting Assets Accounting Depreciation Valuation Method Depreciation Key Calculation Method Maintain Period Control Methods Main Depreciation Key: IMG Financial Accounting Assets Accounting Depreciation Valuation Method Depreciation Key Maintain Depreciation Key AFAMA OABN T-code

SPRO

SPRO

Asset Accounting in SAP FiCo

Asset Accounting
Copy Reference Chart of Depreciation Define Tax Codes for Sales / Purchases Define Depreciation Area Specify Account Determination Create Screen layout Define Asset Class Define Depreciation Methods Maintain Depreciation Key Creation of Asset Master Depreciation Run

Chart of Depreciation
Definition: The account group is a classifying feature within customer master records. The account group determines: o in which number range the customer account number should be; o whether the number is assigned by the user or by the system; o which specifications are necessary or possible in the master record.

Copy Reference Chart of Depreciation Menu Path: IMG Financial Accounting Asset Accounting Organizational Structure Copy reference Chart of Depreciation/Depreciation Area T Code : EC08

Steps: 1. Click Original Object 2. Click Copy org. object 3. Enter From Chart of Depreciation 4. Enter To Chart of dep. - Press Enter - SAVE the settings Assign Chart of Depreciation to Company Code Menu Path: IMG Financial Accounting Asset Accounting Organizational Structure Assign Chart of Depreciation to Company code T Code : OAOB

Steps: 1. Click Position 2. Select Co. Code

3. Enter Chart of Dep. 4. SAVE the settings

Define Tax codes for Sales / Purchases Menu Path: IMG Financial Accounting Financial Accounting Global Settings Tax on Sales / Purchases - Calculation Define Tax Codes for Sales / Purchases T Code : FTXP

Steps: Enter Country Code 1. Enter Tax Code - Press Enter 2. Enter Description 3. Enter Tax type - Press Enter

Define Tax codes for Sales / Purchases Menu Path: IMG Financial Accounting Financial Accounting Global Settings Tax on Sales / Purchases - Calculation Define Tax Codes for Sales / Purchases T Code : FTXP

Steps: 1. Enter Tax %age 2. SAVE the settings

Assign Tax codes for Non Taxable Transactions Menu Path: IMG Financial Accounting Financial Accounting Global Settings Tax on Sales / Purchases - Posting Assign Tax codes for Non Taxable transactions T Code : OBCL

Steps: 1. Click Position 2. Enter Co. Code 3. Enter Input Tax code 4. Enter Output tax code 5. SAVE the settings

Depreciation Area
Definition: An area showing the valuation of a fixed asset for a particular purpose (for example, for individual financial statements, balance sheets for tax purposes, or management accounting values).

Along with "real" depreciation areas, you can define derived depreciation areas. The values for these derived areas are calculated from those of two or more real areas. Depreciation area, which is managed in the system as a real depreciation area (not a derived depreciation area). Each depreciation area is set up to handle depreciation for a particular purpose (e.g. book depreciation, tax depreciation, group depreciation, cost-accounting depreciation, etc.) Define Depreciation Area Menu Path: IMG Financial Accounting Asset Accounting Valuation Determine Chart of Depreciation T Code : OADB Steps: Enter Chart of Dep. - Select All field except 01 Book Depreciation - Click Edit in Main Menu Click Delete - Click Save - Keep pressing Enter - SAVE the settings - Click Back button

Account Determination
Definition: The account determination determines the reconciliation accounts in the general ledger, as well as their offsetting accounts, that are to be posted when certain business transactions are carried out. You must enter an account determination in the asset class. Several asset classes can use the same account determination, if they use the same chart of accounts and post to the same general ledger accounts. Specify Account Determination Menu Path: IMG Financial Accounting Asset Accounting Organizational Structure Asset Class Specify Account Determination T Code : SPRO

Steps: Click New Entries 1. Enter Account determination 2. Enter Name of A/c determination 3. SAVE the settings

Screen Layout Rule

Definition: Screen layout for maintaining asset master data. Using the screen layout rule, you can define: o which fields are - required - optional - suppressed o the maintenance level in the asset hierarchy o which fields are copied, when creating an asset using another asset master record as a reference. You can define screen layout rules for general master data and for depreciation parameters within depreciation areas. Create Screen Layout Rule Menu Path: IMG Financial Accounting Asset Accounting Organizational Structure Asset Class Create Screen layout Rule T Code : SPRO Steps: - All Screen layouts are SAP pre defined, If we Want we can create New Screen Layout Rules.

Number Range Interval

Definition: Identifies a number range interval within an object or sub object. The Number Range Interval contains Two digit ID, From Number, To Number and Check box for External Numbering or Internal Numbering. Define Number Range Interval Menu Path: IMG Financial Accounting Asset Accounting Organizational Structure Asset Class Define Number Range Interval T Code : AS08 Steps: - Enter Co. Code - Click Change Interval 1. Click Insert Interval 2. Enter Number range 3. Enter From Number 4. Enter To Number 5. SAVE the settings

Asset Class

Definition: The main criterion for classifying fixed assets according to legal and management requirements. For each asset class, control parameters and default values can be defined for depreciation calculation and other master data. Each asset master record must be assigned to one asset class. Special asset classes are, for example: o Assets under construction o Low-value assets o Leased assets o Financial assets o Technical assets

Define Asset Class Menu Path: IMG Financial Accounting Asset Accounting Organizational Structure Asset Class Define Asset Class T Code : OAOA Steps: - Click New Entries 1. Enter Asset Class 2. Enter Text & short text 3. Select Acct. determ. 4. Select Scr. layout rule 5. Enter No. range 6. SAVE the settings

Assign GL Accounts to Fixed Assets Menu Path: IMG Financial Accounting Asset Accounting Integration with General Ledger Assign General Ledger Accounts T Code : AO90

Steps: - Enter Chart of Dep. - Select Chart of Dep. - Double Click Account determination - Select Account determ - Double Click Balance Sheet Accounts 1. Enter Asset GL A/c 2. Enter Asset Acquisition GL A/c 3. Enter Relevant GL A/c 4. Double click Depr.

Assign GL Accounts to Fixed Assets Menu Path: IMG Financial Accounting Asset Accounting Integration with General Ledger Assign General Ledger Accounts T Code : AO90

Steps: 1. Enter Acc. Dep. A/c 2. Enter Depreciation A/c 3. SAVE the settings

Determination of Depreciation Area in Asset Class Menu Path: IMG Financial Accounting Asset Accounting Valuation Determination of Depreciation Area In Asset Class T Code : OAYZ Steps: - Select Asset Class - Double click Dep Areas 1. Deactivate check box 2. Enter Layout 3. SAVE the settings

Depreciation Posting Intervals

Definition: Number of periods between two depreciation runs. You specify the interval between two depreciation posting runs in this field. Define this interval by entering the number of posting periods that should be in the interval. Example Key to the entries when using a fiscal year version with 12 normal posting periods: 1 = monthly posting 3 = quarterly posting 6 = semi-annual posting 12 = annual posting Note Depreciation posting runs, which result from changes to valuation due to year-end closing and take place after the end of the fiscal year, can be posted as unplanned depreciation posting runs in the special periods of the given fiscal year version.

Depreciation Posting Rules

Definition: Monthly : Depreciation of fixed assets is posted in each Financial Accounting posting period. Bi-Monthly : Depreciation of fixed assets is posted in every second Financial Accounting posting period. The field is not ready for input if the number of Financial Accounting posting periods is not '12'. Quarterly : Depreciation of fixed assets is posted each quarter, that is in every third Financial Accounting posting period. The field is not ready for input if the number of Financial Accounting posting periods is not '12'. Semi-Annually : Depreciation of fixed asset is posted semi-annually, that is in every sixth Financial Accounting posting period. The field is not ready for entry if the number of Financial Accounting posting periods is not '12'. Annual : Depreciation for fixed assets is posted once a year.

Specify Intervals and Posting Rules Menu Path: IMG Financial Accounting Asset Accounting Integration with General Ledger Post Depreciation To General Ledger Specify Intervals and Posting Rules T Code : OAYR

Steps: - Select Co. Code - Double click Posting Rules - Double click 01-Book Depreciation 1. Select Period and Month 2. SAVE the settings

Specify Rounding off Net Book value and/or Depreciation Menu Path: IMG Financial Accounting Asset Accounting Valuation Amount specification Specify rounding Off Net Book value and/or Depreciation T Code : OAYO Steps: - Select Co. Code - Double click Rounding specifications - Double click 01-Book Depreciation 1. Select Period and Month 2. SAVE the settings

Define Screen Layout for Asset Master Data Menu Path: IMG Financial Accounting Asset Accounting Master Data Screen layout Define Screen Layout for Asset Master data T Code : SPRO Steps: - Double click Define Screen layout for Asset Master data - Select Layout - Double click Logical Field groups - Select 2-Posting Info - Double click Field group rules 1. Select Required fields 2. SAVE the settings

Define Screen Layout for Asset Depreciation Area Menu Path: IMG Financial Accounting Asset Accounting Master Data Screen layout Define Screen Layout for Asset Depreciation Area T Code : AO21

Steps: - Select 2000 - Double click Field group rules 1. Select Required fields 2. SAVE the settings

Base Method
Definition: Base method of the depreciation key for calculating depreciation or imputed interest. Define Base Method Menu Path: IMG Financial Accounting Asset Accounting Depreciation Valuation methods Depreciation Key Calculation Methods Define Base Method T Code : SPRO

Steps: 1. Check Base Method 0014 is there or not 2. SAVE the settings

Declaiming balance Method

Definition: Declining-balance method of the depreciation key for calculating depreciation or imputed interest. The multiplication factor is used in determining the depreciation percentage rate for declining-balance depreciation. The system multiplies the depreciation percentage rate resulting from the total useful life by this factor.

Define Declaiming Balance Method Menu Path: IMG Financial Accounting Asset Accounting Depreciation Valuation methods Depreciation Key Calculation Methods Define Declaiming Balance Method T Code : SPRO

Steps: 1. Check Decl bal Method 001 is there or not 2. SAVE the settings

Multi level Method

Definition: Multi-level method of the depreciation key for calculating depreciation or imputed interest. Define Multi Level Method (Straight Line Method) Menu Path: IMG Financial Accounting Asset Accounting Depreciation Valuation methods Depreciation Key Calculation Methods Define Multi Level Method T Code : AFAMS

Steps: - Click New Entries 1. Enter Multi lev. Methd 2. Enter Description 3. Double Click Levels

Define Multi Level Method (Straight Line Method) Menu Path: IMG Financial Accounting Asset Accounting Depreciation Valuation methods Depreciation Key Calculation Methods Define Multi Level Method T Code : AFAMS

Steps: - Click New Entries 1. Enter Acq. year 2. Enter Year 3. Enter Period

4. Enter Base value 5. Enter Percentage 6. SAVE the settings - Click Back button 3 times

Define Multi Level Method (Written Down Value Method) Menu Path: IMG Financial Accounting Asset Accounting Depreciation Valuation methods Depreciation Key Calculation Methods Define Multi Level Method T Code : AFAMS

Steps: - Click New Entries 1. Enter Multi lev. Methd 2. Enter Description 3. Double Click Levels

Define Multi Level Method (Written Down Value Method) Menu Path: IMG Financial Accounting Asset Accounting Depreciation Valuation methods Depreciation Key Calculation Methods Define Multi Level Method T Code : AFAMS

Steps: - Click New Entries 1. Enter Acq. year 2. Enter Year 3. Enter Period 4. Enter Base value 5. Enter Percentage 6. SAVE the settings - Click Back button 3 times

Period Control Method

Definition: Period control method of the depreciation key for calculating depreciation or imputed interest.

Maintain Period Control Method Menu Path: IMG Financial Accounting Asset Accounting Depreciation Valuation methods Depreciation Key Calculation Methods Maintain Period Control Method T Code : AFAMP Steps: - Enter Chart of Dep.

- Click New Entries 1. Enter Prd Cntrl Methd 2. Enter Description 3. Enter Acquisition type 4. Enter Addition type 5. Enter Retirement type 6. Enter Transfer type 7. SAVE the settings

Depreciation Key
Definition: The depreciation key (valuation key) controls the valuation of the asset in the particular depreciation areas. The depreciation key consists of the following: o Calculation method for the automatic calculation of interest, ordinary and special depreciation o Possibly a cutoff value key o Various control indicators

Maintain Depreciation Key Menu Path: IMG Financial Accounting Asset Accounting Depreciation Valuation methods Depreciation Key Maintain Depreciation Key T Code : AFAMA

Steps: - Enter Chart of Dep. - Click New Entries 1. Enter Dep. Key 2. Enter Description 3. Select Period control according to fiscal yr 4. Double click Assignment of Calculation methods

Maintain Depreciation Key Menu Path: IMG Financial Accounting Asset Accounting Depreciation Valuation methods Depreciation Key Maintain Depreciation Key T Code : AFAMA

Steps: 1. Select Ord Dep. 2. Select From the start of depreciation 3. Select Base method 4. Select Decl. bal. metd 5. Select Prd cont 6. Select Multilev method

7. Select Class 8. Click Back button

Maintain Depreciation Key Menu Path: IMG Financial Accounting Asset Accounting Depreciation Valuation methods Depreciation Key Maintain Depreciation Key T Code : AFAMA

Steps: 1. Select Ord Dep. 2. Click Activate 3. Click Back button

Asset Master
Definition: The asset master record contains all information relating to an asset that remains unchanged over a long period of time: Technical master data Organizational allocations (usually time-dependent) Depreciation terms The system stores all the values and transaction data per each asset master record. You can differentiate between different types of assets in the FI-AA component. The structure of the master record is identical for all asset main numbers, asset sub-numbers and group assets. Therefore, the basic procedure for creating any of these objects is essentially the same.

Creation of Asset Master Menu Path: Easy Access Accounting Financial Accounting - Fixed Assets Asset Create T Code : AS01

Steps: 1. Select Asset Class 2. Select Co. code 3. Click Master Data

Creation of Asset Master Menu Path: Easy Access Accounting Financial Accounting - Fixed Assets Asset Create

T Code : AS01

Steps: 1. Enter Description 2. Enter Name 3. Enter Capitalization date 4. Click Depreciation areas

Creation of Asset Master Menu Path: Easy Access Accounting Financial Accounting - Fixed Assets Asset Create T Code : AS01

Steps: 1. Enter Dep Key 2. Enter Useful life 3. Enter Percentage 4. Enter Dep. Start date 5. SAVE the settings

Creation of Sub-Asset Master Menu Path: Easy Access Accounting Financial Accounting - Fixed Assets Asset Create Sub Number Create T Code : AS11

Steps: 1. Enter Asset 2. Enter Co. Code 3. Click Master Data

GL Master Records to be created in AR

ASSETS Fixed Asset (Recon) A/c Accumulated DepreciationA/c. Asset Acquisition INCOME Sales of Asset Profit on Sale of Asset LIABILITIES EXPENSES Loss on Sale of Asset

Loss due to Asset Scrap Depreciation Configurations testing End user part Post Asset Purchase Invoice Depreciation Run Asset Purchase Posting Menu Path: Easy Access Accounting Financial Accounting - Fixed Assets Postings Acquisition External Acquisition with Vendor T Code : F-90

Steps: 1. Enter Doc date, Post date, Doc type, Period, Co. Code, Currency 2. Enter Post Key 3. Enter Vendor Code - Press Enter

Asset Purchase Posting Menu Path: Easy Access Accounting Financial Accounting - Fixed Assets Postings Acquisition External Acquisition with Vendor T Code : F-90

Steps: 1. Enter Amount 2. SAVE the document

Depreciation Run Menu Path: Easy Access Accounting Financial Accounting - Fixed Assets Periodic Processing Depreciation Run - Execute T Code : AFAB

Steps: 1. Enter Co. Code 2. Enter Fiscal Year 3. Enter Period 4. Select Planned posting run 5. Select Test Run 6. Click Execute - Press Enter

Depreciation Run

Menu Path: Easy Access Accounting Financial Accounting - Fixed Assets Periodic Processing Depreciation Run - Execute T Code : AFAB

Steps: - After Test run is done The screen will appear With total depreciation Amount and the amount Of depreciation is to be Charged to particular Period

Depreciation Run Menu Path: Easy Access Accounting Financial Accounting - Fixed Assets Periodic Processing Depreciation Run - Execute T Code : AFAB

Steps: 1. Enter Co. Code 2. Enter Fiscal Year 3. Enter Period 4. Select Planned posting run 5. De Select Test Run 6. Click Program 7. Click Execute in Back ground - Enter Output Device - Click Continue - Click Immediate - SAVE the settings

Depreciation Run Menu Path: Easy Access Accounting Financial Accounting - Fixed Assets Periodic Processing Depreciation Run - Execute T Code : AFAB Steps: - Go to System>Service >Jobs>Job overview - Click Execute button - Select the Job - Click Spool button - Select the Line Item - Click Display button - Final Screen will appear for posting Depreciation

Here are steps for interest calculation:

1. Define terms of payments: T.code: OBB8 path: img ->fin. accting -> AP AR :-> Business transactions :->outgoing invoice and credit memo :-> maintain terms of payment 2. Define Interest Cal indicators / type: T.code: ob46 path: img ->fin. accting -> AP AR :-> Business transactions :-> interest calculation global settings :-> define interest cal types here in int cal type select 'p' for int cal on line items 3. Make Interest Indicator Available to Interest Run Program: T.Code: ob82 path: img ->fin. accting -> AP AR :-> Business transactions :-> interest calculation global settings :-> prepare int. on arreas 4. Create Reference Interest Rate: T.code: OBAC path: img ->fin. accting -> AP AR :-> Business transactions :-> interest calculation :-> interest calculation -> define reference interest rate 5. Assign interest indicators to ref. int rate or define time dependant terms: T.code: ob81 path: img ->fin. accting -> AP AR :-> Business transactions :-> interest calculation :-> interest calculation -> define time dependant terms here in sequnece # always use 1 for line item interest 6. Interest calculation account assignment: Here we will mention how and which accounts the interest program should post. T.code: obv1 path: img ->fin. accting -> AP AR :-> Business transactions :-> interest calculation :-> interest posting -> prepare interest on arreas calculation (customers)

Down payments will be created in the billing plan. For this the billing plan type must be assigned to your Sales document type/item category. The path for configuring billing plans is: SPRO-->Sales and Distribution-->Billing-->Billing Plan. Here you have many options. There are two types in billing plan types. 1.Milestone billing 2.Periodic billing. You have to choose the required one as per your requirement.After that apply billing plan to your document type/item category.

Configuration steps for Down Payments.

Customized settings required for down payment processing: Settings for the billing plan - To activate the billing plan function, maintain the materials, for which you wish to process down payments, with item category group 0005 (milestone billing). This gives the item type TAO via item type determination. The item type TAO calls up the billing plan function. The following activities should be implemented in the billing plan for down payments: Maintain deadline category - This determines the billing rule (percentage or value down payment) for the down payment request. The system assigns billing type FAZ (payment request) defined in the standard system with billing category P. (For the billing type FAZ there is the cancellation billing document type FAS in the standard system). Maintain the deadline proposal - Use the down payments that are due for the proposed deadlines. Maintaining a Pricing Procedure with the Condition Type AZWR: In the standard system the condition type AZWR is delivered for the down payment value already provided but which has not yet been calculated. You must include this condition type in the relevant pricing procedure before output tax. Enter condition 2 (item with pricing) and the calculation formula 48 (down payment clearing value must not be bigger than the item value) for the condition type AZWR. Before the condition AZWR you can create a subtotal with the base value calculation formula 2 (net value). If the condition AZWR is changed manually, you can get information on the original system proposal from the subtotal. Maintain the printing indicator - The pricing procedure can not be marked as a transaction-specific pricing procedure (field Spec.proc.) The condition type AZWR has the calculation type B (fixed amount) and the condition category E (down payment request / clearing). Maintaining the Billing Document - In the standard system there is the billing type FAZ (down payment request) and the billing type FAS for canceling . The down payment is controlled using the billing category P of the billing type. A billing type becomes a down payment request when the billing category P is assigned. You have to maintain blocking reason 02 (complete confirmation missing) for the billing documents and assign it to billing type FAZ. Copying control - Copying requirement 20 must be entered in copying control at item level for the down payment request. In the standard system the order type TA for copying control is set up according to the billing type FAZ for the item category TAO. Copying requirement 23 must be entered in copying control at item level for down payment clearing. In the standard system the order type TA for copying control is set up according to the billing type F2 for the item category TAO. Financial Accounting settings - A prerequisite for down payment processing is that the account is assigned to the underlying sales document. To do this, change the field status settings in Customizing as follows: Set reconciliation accounts (transaction OBXR) - For the `received down payments' and `down payment requests' from the G/L accounts you have selected, you should assign the field status definition G031. Maintain accounting configuration (transaction OBXB) - For the down payments (posting key ANZ in the standard system) and the output tax clearing (posting key MVA in the standard system), you must maintain the posting key. You must also carry out a G/L account number assignment for the tax account.

Maintain the posting key (transaction OB41) - For posting key 19, set the sales order as an optional field !!! Maintain the field status definition (transaction OB14) - For field status variant 0001, field status group G031, set the sales order as an optional field !!! Assign the company code to the field status variants (transaction OBC5)

Asset Accounting (FI-AA) SAP allows to categorize assets and to set values for depreciation calculations in each asset class
Utilized for managing companys Fixed Assets SAP allows to categorize assets and to set values for depreciation calculations in each asset class. Features: The Asset Accounting component consists of the following parts:

Traditional asset accounting: encompasses the entire lifetime of the asset from purchase order or the initial acquisition (possibly managed as an asset under construction) through its retirement. The system calculates, to a large extent automatically, the values for depreciation, interest, insurance and other purposes between these two points in time, and places this information at your disposal in varied form using the Information System. There is a report for depreciation forecasting and simulation of the development of asset values. Processing leased assets Preparation for consolidation Information System Basic Functions for Asset Valuation:

determine the values of all fixed assets at a given point in time You use depreciation areas to calculate different values in parallel for each fixed asset for different purposes. Depreciation Area Features: are grouped together, according to the requirements of a specific country or economic area, into a chart of depreciation. It identified by two-digit numeric keys, enter the depreciation terms in the asset class or directly in the asset master record of the particular asset. Standard Depreciation Areas: - Book depreciation area: only for depreciation allowed by commercial law - Special Tax Depreciation area for Acquisition and Production Costs in the Individual Balance Sheet - Special Reserves area due to Special Tax Depreciation: for example,

Special tax depreciation (such as, transfer of reserves i.e. Deferred Gain) Differing depreciation methods (book depreciation/tax depreciation) Differing useful life (book depreciation/tax depreciation)

- Valuation of Net Assets area: specify valuation rules for net worth tax.

- Balance Sheet area for Tax Purposes: used for the management of values for an alternative balance sheet for tax purposes. - Cost-Accounting Depreciation Area:depreciates the replacement values and simultaneously appreciates accumulated past depreciation. Depreciation is carried out below net book value zero and cost-accounting interest is calculated. - Consolidated Balance Sheet in Local Currency Area: for gross transfers are carried between affiliated companies - Consolidated Balance Sheet in Group Currency Area: When a company belongs to a corporate group that reports in another currency. It is managed in the group currency. - Balance Sheet in Foreign Currency Area: In order to correctly determine the intercompany profit and loss from intercompany asset transfers. - Investment Support Managed Area on the Assets Side: Where it reduces the acquisition and production costs. - Investment Support Managed Area on the Liabilities Side: Where it posted as an adjustment item for the acquisition and production costs on the liabilities side during the periodic posting run. Depreciation Methods: The standard calculation methods are an integral part of the system defined in the depreciation key. Calculation Method Base Method Declining-Balance Method Maximum Amount Method Multi-Level Method Period Control Method Control Parameters Depreciation type (ordinary or special depreciation, interest) Depreciation calculation method (for example, Stated percentage) Treatment of the end of depreciation Declining-balance multiplication factor, maximum and minimum percentage rate Maximum amount, currency, validity date

assign a scrap value key to each depreciation key in its definition. Special Valuation: to calculate asset values for specialized purposes, such as; - Insurance Values: certain values and information relevant to the insurance policies. - Leased Assets: There are two different options: -Capital Lease: to capitalize and depreciate certain leased assets. -Operating Lease: Periodic rent expense, flows into the profit and loss statement, not relevant to the fixed assets of the lessee. It is therefore sufficient to do one of the following: - Manage as statistical assets in the Asset Accounting component (with no active depreciation areas) - Manage only as cost-accounting values (or for group accounting) in the corresponding dep. areas capital lease method: The system calculates the acquisition value from the present value of the future lease payments in the leasing agreement. i.e. maintain the following leasing conditions in the asset master records:

Amount of lease payment Number of payments Payment cycle

In order to calculate present value, also enter an interest rate. The system requires that you post a leasing partner as a vendor in the asset master record at the time of the acquisition posting (opening posting). Include the net amount (that is, the amount without input tax) of the liabilities for a leased asset Debit input tax and credit vendor at the time of payment. - Calculation of Interest: The system enables you to calculate this interest per depreciation area. Master Data Maintenance: It consists of two main parts: -General Master Data: The following field groups exist:

General information (description, quantity, etc.) Account assignment Posting information (for example, capitalization date) Time-dependent assignments (for example, cost center) Information for plant maintenance Entries for net worth tax Information on real estate Leasing conditions Investment support measures Information on the origins of the asset Physical inventory data Insurance data User fields/evaluation groups

Data for Calculating Asset Values: You can specify depreciation terms in the asset master record for each depreciation area in the chart of depreciation. In order for you to make these specifications, the master record contains an overview of the depreciation areas. In addition, there is a detailed display available for each depreciation area. If there are depreciation areas that are not needed for a specific asset, it is possible to deactivate these depreciation areas at the asset level. Basic Functions of Transactions All business transactions that affect fixed assets, group into:

Transactions that influence the acquisition and production costs of fixed assets These include: Acquisitions, retirements, transfer postings, post-capitalization Down payments Investment support measures Manual depreciation

Write-ups

Asset Accounting (FI-AA) Create view

Organizational Structure: Check- Country Specific Settings

Maximum LVA amount for posting: Here we define the maximum amount for checking posting to low value assets. Net book value for changeover of depreciation method: If you enter an amount in this field, the system changes over the calculation of depreciation to the changeover key defined in the depreciation key, as soon as the net book value is less than the amount entered here. You must be using a depreciation key with an internal calculation key defined with changeover method 3 (changeover as soon as the net book value is smaller than the changeover amount). If you use any other changeover methods, this amount is ignored. Indicator transfer down payments from previous years: When you set this indicator, the system ignores downpayments during the line item settlement of assets under construction. The total amount of the closing invoice is then always transferred to the capitalized asset using the transaction type based on the year of the closing invoice. Copy Reference Chart of Depreciation/ Depreciation Areas

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. You must assign a chart of depreciation to each company code that is defined in Asset Accounting. SAP provides country-specific charts of depreciation with predefined depreciation areas. These charts of depreciation serve only as a reference for creating your own charts of depreciation, and are therefore not directly accessible in the SAP system. When creating a chart of depreciation, you have to copy the reference chart of depreciation.

You can define depreciation areas for the parallel valuation of fixed assets for a particular purpose. This is done using "real" depreciation areas and derived depreciation areas . The values in the derived depreciation area are calculated from the values of two or more real areas, using a formula you define. The system does not permanently store the values from the derived depreciation area. They are determined dynamically at the time of the request. Otherwise, derived depreciation areas have the same system functions as real areas. Most important, they can be evaluated in the same way, and posted to the general ledger (for example, for showing special reserves). The country-specific charts of depreciation (for example, 0US for the USA) contain fully defined standard depreciation areas, for example, for

book depreciation tax depreciation

cost-accounting depreciation special reserves investment support

These standard depreciation areas provide a reference. From the point of view of SAP, this reference meets all requirements for accounting and legal considerations. You always have to copy one of the standard depreciation areas in order to create a new depreciation area. Therefore, you should delete standard depreciation areas only after careful consideration. It is usually better to avoid deleting them, and instead set them to inactive in the asset class. 1. Check the definition of the depreciation areas that were created by reference to a standard chart of depreciation (in the detail screen). 2. If necessary, define new depreciation areas, by copying an already existing depreciation area. 3. Specify the characteristics of your depreciation area in the detail screen: a) Specify the type of value management that is allowed. You must allow APC and positive remaining book value in all areas in which you want to depreciate capitalized asset balances (the usual procedure). Allow negative net book values in depreciation areas that depreciate below zero, and in areas for managing value adjustments posted on the liabilities side (special reserves). The second of these also are not allowed to manage APC or net book values. Specify if the asset values/depreciation of the area should be posted automatically to the general ledger or to cost elements (asset balance sheet values: online/periodic). The system can only post asset balance sheet values from one depreciation area in online. Generally, this area is the book depreciation area. Other areas (for special reserves or cost accounting depreciation) can be posted automatically to the general ledger using background processing (application menu: Periodic processing), when the automatic posting indicator is set. Depreciation can be posted only periodically. You specify the reconciliation accounts and offsetting accounts for automatic posting in other steps in the implementation process.

If you need depreciation areas that derive their values from other depreciation areas, you can define derived depreciation areas. For this purpose, enter the depreciation areas that are to form the basis for its values. Enter whether the values from these areas should be included as positive or negative values in the formula. Make sure that the indicator "real area" is not set.

The derived depreciation area can be for reporting only (that is, its values are not posted to reconciliation accounts). In this case, you can specify that the system does not perform a value check for this derived area (indicator: "for reporting purposes only"). 4. Check the standard type of the depreciation area. The depreciation areas in the standard chart of depreciation all have a type. When you create a chart of depreciation, the system takes over these types from the referenced standard chart of depreciation. For example, the type of depreciation area 01 is "book depreciation." If you are also using the IM (Investment Management) component, the depreciation area with type 07 (cost accounting valuation) has special importance. At the present time, you cannot transfer capitalization differences as nonoperating expense to this depreciation area. This limitation is required in order to make sure that all noncapitalized debits on a capital investment measure are accounted for in controlling. It is also possible to delete a depreciation area. The depreciation area to be deleted must meet the following requirements:

It cannot be the master depreciation area (01).

The depreciation area cannot be a reference for another area (for acquisition values, depreciation terms). The depreciation area cannot be part of the calculation rule for a derived depreciation area. In this case, you have to change the calculation rule for the derived depreciation area in question. The depreciation area cannot be defined for automatic posting of its values to the general ledger.

The system then deletes the selected depreciation area in the chart of depreciation and in the valuation specifications for all affected assets and asset classes. Depreciation areas that are not used can still be activated at a later point in time (after the production startup). A newly activated depreciation area can take over values from another depreciation area. It also contains the rules for the evaluation of assets that are valid in a specific country or economic area. Each company code is allocated to one chart of depreciation. Several company codes can work with the same chart of depreciation. The chart of depreciation and the chart of accounts are completely independent of one another Depreciation Area: which is managed in the system as a real depreciation area (not a derived depreciation area). Each depreciation area is set up to handle depreciation for a particular purpose (e.g. book depreciation, tax depreciation, group depreciation, cost-accounting depreciation, etc.) Every depreciation area belongs to at least one chart of depreciation , and is managed independently from other depreciation areas. However, you can define depreciation areas so that it is possible to use one area to check the values of another area, or so that one area can take over values from another area. You can also define derived depreciation areas . The values in a derived depreciation area are determined from the values of real depreciaton areas, using a mathematical relationship, which you define (for example, reserve for special depreciation). The Depreciaiton Area 1 and 30 cannot be deleted as this is required by the system for posting the depreciation in the G/L account and for the purpose of consolidation. Real Dep. Area: Set this indicator if you want the system to store the values of this depreciation area in the database (meaning that the area is not a derived depreciation area). The values in this area are then updated each time a posting is made, and can be immediately evaluated 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. Acquisition Value: In this field, you specify whether the real acquisition value (without taking investment support into account) in this depreciation area should have a positive or negative balance. Net book Value: You can specify here that the net book value balance in this depreciation area is always either positive or negative

Assign Chart of Depreciation to Company Code

Specify Number Assignment across Company Codes

Asset Classes Specify Account Determination

Create Screen Layout Rules

Define Number Range Interval

Define Asset Classes

Inventory indicator: Set this indicator if you want the asset to be counted in a physical inventory. This indicator ensures that the asset is included in the standard inventory list of Asset Accounting. Assets without this indicator are not output by the report. Asset under construction without line item settlement: Specifies that assets under construction in this asset class are managed without the option of line-item final settlement to receiver assets or cost centers. The summary management of the asset under construction has the following affects:

Only complete transfers or simple partial transfers are possible (in other words, you can only transfer either prior-year acquisitions or current-year acquisitions in one given posting transaction). You can only transfer to one target asset per posting transaction. You have to enter the amount of the transfer manually. There is no connection to the original asset under construction in the capitalized asset. Therefore, there is no exact proof of origin for the original postings

Asset class is blocked: Set this indicator to prevent new assets from being created in this asset class. Asset is managed historically: Set this indicator if you want the system to manage the asset with a history. Active history management has the following effects:

The asset is displayed in an asset chart. The asset and the values/transactions belonging to it cannot be reorganized until the asset is deactivated.

Specify Chart of Dep Dependent Screen Layout/ Acct Assignment

Define How Depreciation Areas post to General Ledger

This step is already completed while defining the depreciation area and therefore no need to define it once again here. Assign G/L Accounts

Change the Field Status Variant of the Asset G/L Accounts

Assign Input Tax Indicator for Non- Taxable Acquisitions

Specify Financial Statement Version for Asset Reports

Here we assign the Financial Statement Version to a depreciation area. That means a company can have different financial statement version for reporting purpose and can select appropriate financial version for each depreciation area. The financial statement version is to be created using the END use menu and the step will be explained in the subsequent document for Financial Statement Version. Post Depreciation to the General Ledger Specify Document type for Posting of Depreciation

In this processing step you determine the document type for each company code for posting depreciation. SAP supplies document type AF for depreciation posting. o It must be a document type for batch input. o It must be defined with external document number assignment. Specify Intervals and posting Rules

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. You must have specified which depreciation areas should post automatically to the general ledger.

Period Interval: You specify the interval between two depreciation posting runs in this field. Define this interval by entering the number of posting periods that should be in the interval. Valuation Set Chart of Depreciation

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 this chart. If you have created more than one chart of depreciation, the system asks you to identify the chart of depreciation affected the first time you call up a function that affects the chart of depreciation. The chart of depreciation you select at this point remains active during your log-on, unless you specifically enter a new chart of depreciation. If you had set one chart of depreciation, and now want to work with a new one, you set the new chart of depreciation in this processing step. Depreciation Areas Define Depreciation Areas

Specify Transfer of Depreciation Terms

Determine Depreciation Areas in the Asset Class

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. Deactivate Asset Class for Chart of Depreciation

In this step, you can lock asset classes for entire charts of depreciation. In this way, you can prevent an asset class from being used inadvertently in a chart of depreciation for which it is not intended. Valuation Methods Depreciation Key Calculation Methods Define Base Methods

In this step, you maintain base methods. Base methods are valid in all charts of depreciation Base method of the depreciation key for calculating depreciation or imputed interest. Depreciation calculation method: With this indicator you specify which depreciation calculation method the base method should use. Reduce useful life to the end of fiscal year: If you set this indicator, the system reduces the planned useful life so that the end of depreciation always coincides with the end of the fiscal year. Depreciation after end of planned life: Set this indicator, if you want the system to continue depreciation after the end of the planned useful life. Define Declining-Balance Methods

In this step, you define declining-balance methods. You then assign them to depreciation keys. SAP supplies commonly-used calculation methods. 1. Maintain declining-balance methods and their descriptions. 2. For each declining-balance method, specify: o A multiplication factor for determining the depreciation percentage rate o An upper limit for the depreciation percentage rate o A lower limit for the depreciation percentage rate

Define Multi-Level Methods

Maintain Period Control Methods

Maintain Depreciation Key

Define Screen Layout for asset master Data

Define Screen Layout Rules for Asset Depreciation Area

Maintain Field Status Varients

Change View "Filed Status Varients": Overview

New Entries: Overview of Added Enries

New Entries: Overview of Added Enries

Double click on Revenue clearing account Maintain Field status Group: Overview

Double click assets accounting

Maintain Field status Group: Asset Accounting

Save it Maintain Field status Group: General data

Maintain Field status Group: Additional account assignments

Maintain Field status Group: Matrials mangement

Maintain Field status Group: Payment transactions

Maintain Field status Group: Asset Accounting

Maintain Field status Group: Taxes

Maintain Field status Group: Foriegn payments

Maintain Field status Group: Consolidation

Maintain Field status Group: Real estate mangement

Maintain Field status Group: Financial assets mangement

Copy the setting to all other Fields status groups

Display IMG

New Entries: Details of Added Entries

Create User "su01" Display IMG

Maintain User

Maintain User

Maintain User

Maintain User

Maintain User

Next creation of GL account thru Individual user login

SAP Easy Access

For Tax setting

Display IMG

Display IMG

CLICK Define procedures 27.08.2006

Create G/L Account Centrally

Create G/L Account Centrally

Create G/L Account Centrally

Save it In case of Balance Sheet Items:

Create G/L Account Centrally

Click "Only Balance in Local CRCY