PAAC10 Accounting and Controlling

PAAC10 Accounting and Controlling
0. PAAC10
Copyright
Overview of PAAC10

1. Section: Financial Accounting
Contents (1)
Contents (2)
Contents (3)
Contents (4)
Contents (5)
Organizational Structures in Financial Accounting
Clients in the SAP System
Organizational Structure 1
Organizational Structure 2a
Organizational Structure 2b
Organizational Structure 2 - Consolidation Enterprise View
Summary: Organizational Structures

2. Basic Configuration
Configuration Project Steps
Breakdown Of Configuration Levels
FI Configuration - What To Do (1)
FI Customizing Copy Functions
Summary: Basic Configuration

3. Global Data In The Company Code
Organization of Accounting
Procedural Parameters
Address
Additional Specifications
Summary: Global Data In The Company Code

4. General Ledger Accounts
Accounting Master Data - G/L Accounts
Accounting Master Data - Chart Of Accounts
G/L Account Master Record
Accounting Master Data - Charts Of Accounts
Accounting Master Data - CASH Account Group (Current Assets/
Accounting Master Data - Fields
Accounting Master Data - Status
Summary: General Ledger Accounts

5. Bank Master Data
House Bank Master Data - Banks
House Bank Master Data - Bank Directory
House Bank Master Data - Bank ID
House Bank Master Data - Key Term
House Bank Master Data - Creating House Banks/Bank Accounts
Summary: Bank Master Data

6. Customer Master Data
Accounting Master Data
Customer Master Records - Create
Customer Master Record - Affiliated Company
Customer Master Record - Using Modules
Customer Master Record - Accounting / Sales
Customer Master Record - Accounting
Master Data - Account Groups 1
Number Ranges 1
Summary: Customer Master Data

7. Vendor Master Data
Accounting Master Data - Vendors
Vendor Master Record - Create
Vendor Master Record - Using Modules
Vendor Master Record - Accounting / Purchasing
Master Data - Account Group 2
Number Ranges 2
Summary: Vendor Master Data

8. Documents
Reconciliation Account
Document Principle
Document Structure
Basic Posting - Document Header Data
Basic Posting - First Line Item
Basic Posting - Next Line Item
Posting Keys
Posting Keys - Field Status
Field Status Definitions (G/L Accounts)
Screen Modification
Display / Change Document
Document Change Rules
Document Reversal
Default Values
Summary: Documents

9. Document Control
Valid Posting Periods - Posting Date
Valid Posting Periods - Account Type Keys
Valid Posting Periods - Variants
Valid Posting Periods - Posting Date When Entering Documents
Document Type
Document Types
Document Number Range - Define
Document Number Range - Specify
Posting Keys
Default Values For Fiscal Year and Value Date
Summary: Document Control

10. Postings Transactions
Setting Up New Tax Codes
Tax Accounts
Exchange Rate Differences
Clearing Between Company Codes
Account Determination
Payment Terms
Automatic Postings
Work Lists For Several Company Codes And/Or Accounts
Line Item Display - Automatic Work Lists
Entering Recurring Postings
Recurring Entry Program Flow
Summary: Posting Transactions

11. Accounts and Line Items
Account: Transaction Figures
Balance Display for G/L Accounts
Balance Display for Customers and Vendors
Account Line Items
Master Record Control
Summary: Accounts and Line Items

12. Foreign Currencies
Posting in Foreign Currency
The FI View
Target Group
Options for Additional Currencies (FI)
Two Additional Currencies in FI
FI using LC
Also See Exchange Rates

13. Entry Tools and Special Features
Entry Tools: Entry with Reference
Solution for Recurring Postings
Posting with Account Assignment Model
Sample Documents and Account Assignment Models
Text in Line Items
Hold and Process Document
Cross-Company Code Posting
Cross-Company Code Clearing
Cross-Company Code Posting (2)
Invoice and Credit Memo Fast Entry
G/L Account Line Item Fast Entry
Document Parking
Parking
Changing a Parked Document
Posting
Document Data
Park (1)
Park (2)
Park (3)
Park (4)
Posting
Overview of Release Approval Procedure
Summary: Entry Tools and Special Features

14. Optional Functionality
Cross-System Company Codes

Additional Local Currency
Individual Editing Options
General Editing Options
Maintaining The Line Layout
Defining Processing Methods
Screen Modification - Master Record and Posting Functions
Screen Modifications - Example: Customer Master Record
Screen Modifications - Link Rules - Master Records
Screen Modifications - Link Rules - Posting Transactions
Control Totals
Summary: Optional Functionality

15. Reporting
Reporting - Table TLSEP
Requesting A Report
Defining A Job
Summary: Reporting

16. Company-Specific Modifications
Accounting Environment - Minimum Entries (Employees 1)
Accounting Environment - Minimum Entries (Employees 2)
Accounting Environment - Minimum Entries (FI Tolerance Group
FI Tolerance Groups For Users And Customers/Vendors 2
FI Tolerance Groups For Users And Customers/Vendors 3
Accounting Environment - Minimum Entries for Tax
Accounting Environment - Taxes
Accounting Environment (2)
Accounting Environment - Minimum Entries (Field Status, Curr
Summary: Company-Specific Modifications

17. Posting with Clearing
Posting with Clearing
Posting with Clearing (2)
Selecting Items for Processing
Processing Open Items
Partial Payment
Residual Items
Clearing with Exchange Rate Differences
Clearing in a Third Currency
Clearing between Customer and Vendor (2)
Fast Entry: Incoming Customer Payments
Incoming Payments Fast Entry
Tolerance Groups
Tolerance Groups for Users
Tolerance Groups for Business Partners
Account
Summary: Posting with Clearing

18. Automatic Dunning - Operating the Dunning Process
How Dunning Works
Key Values
Master Record - Dunning Data
Running The Dunning Program
Control Specifications
Dunning Run
Processing the Dunning Proposal
Printing Dunning Notices
Customer - Vendor Clearing
Summary: Automatic Dunning

19. Automatic Dunning - Configuring the Dunning Program
Configuring The Dunning Program
Maintaining The Dunning Program: Overview
Dunning Levels
Minimum Amounts
Dunning Charges
Interest Rates
Dunning Texts
Company Code Data
Sort Fields
Dunning Block Reasons / Dunning Keys
Defining Dunning Areas
Grouping Key
Sender Specifications
Mahnlauf - Ausfhrung des Mahnprogrammes
Summary: Automatic Dunning - Configuring the Dunning Program

20. Automatic Payments - Operating the Payment Program
Possible Payment Methods
Payment Programm Flow
Einflugren
Master Record - Customer/Vendor Bank Details
Master Record - Parameters For Automatic Payment Transaction
Document: Key Values
Control Specifications: Parameters
Control Specifications: Proposal Run
Control Specifications: Payment Proposal
Control Specifications: Processing The Proposal
Control Specifications: Payment Run
Control Specifications: Printing Payment Media
Print Programs - Variants
Customer - Vendor Clearing 2
Summary: Automatic Payments - Operating the Payment Program

21. Automatic Payments - Configuring the Payment Program
Payment Control
Company Codes
Paying Company Codes
Payment Methods Per Country
Payment Methods Per Company Code
Payment Methods Per Company Code II
Payment Program Configuration
Bank Selection
Account Determination - Account ID
Available Amounts
Bank Selection By Postal Code
Value Date
Charges / Fees
Payment Block Reasons
Gruppierungsschlssel
Printing Payment Media
Print Programs
Forms
Data Medium Exchange
Automatic Cashed Checks With Optical Document Entry
Summary Automatic Payments - Configuring the Payment Program

22. Special General Ledger
Special General Ledger Transactions
Posting Methods
Controls
How Special General Ledger Transactions are Displayed
Down Payments
Customer Down Payments
Vendor Down Payments
Down Payments with Tax: Gross or Net Display
Bills of Exchange Receivable
Bills of Exchange Receivable - Collection
Bills of Exchange Receivable - Discounting
Bills of Exchange Payable
Bills of Exchange Payable (2)
Special General Ledger - Summary

23. Introduction to Individual Account Closing
The Individual Financial Closing Process in Overview
External Closing
Asset History Sheet (FI-AA)
Internal Closing
Fundamentals of Closing Operations
Summary: Introduction to Individual Account Closing

24. Closing Operations for Payroll Accounting
Payroll Data on the Balance Sheet
The Payroll Procedure and Subsequent Activities
Posting Personnel Costs Using a Clearing Cost Center
Further Postings Effected for Payroll Accounting
Particular aspects of transfers to FI/CO
Imputed Costs in Cost Accounting
DUEVO (German Data Communications Regulation)
Summary: Closing Operations for Payroll Accounting

25. Closing Operations for Accounts Receivable and Payable

Accounts Receivable and Payable on the Balance Sheet
Transactions in Sales and Distribution Processing
Effects of Creating a Billing Invoice
Consistency
Customizing I : Balance Confirmations
Customizing II : Balance Confirmations
Individual Value Adjustments (IVA) for Doubtful Receivables
Foreign Currency Valuation and the Sorted List
Valuation (with Update)
Valuation (without Update)
Customizing: Exchange Rate Types
Customizing: Valuation Methods
Customizing: Acct Determination for Exch. Rate Differences
Example: Customers with Credit Balance
Changed Reconciliation Account
Customizing: Regroup Receivables and Payables
Documentation
Reports
Summary: Closing Procedures for Accounts Receivable/Payable

26. Closing Operations in Inventory Accounting
Integration of Inventory Accounting in the Balance Sheet
Transactions in Inventory Accounting
Cash Discount
Maintaining the GR/IR Clearing Account
Physical Inventory Procedure
Material Valuation in the SAP System I
Material Ledger Closing
Material Price Changes
Lowest Value Determination
Closing Operations and Documentation
INTRASTAT Declaration
Summary Closing Operations in Inventory Accounting

27. Period Closing in Controlling and in the Project System
Controlling in R/3
Organizational Units in the SAP System from a CO Standpoint
Assignment of Company Codes to a Controlling Area
Combination of Company Codes and Controlling Area
The Chart of Accounts
Cost Elements
Allocating Costs to CO Objects I
Cost Clearing in External Accounting
Reconciliation Ledger
Structure of the Reconciliation Ledger
Reconciliation Postings
Reconciliation Reports
Account-Based and Costing-Based Profitability Analysis
Transfer of Payables/Receivables
Reporting Techniques in Cost Object Controlling
CO-PA Information System
Summary Period Closing in Controlling and Projekts System

28. Closing Operations for Asset Accounting
Assets on the Balance Sheet
Periodic Processing - Overview
Report selection
Settlement of Capital Investment Orders
Capitalization of Assets under Construction
Line Item Settlement of Asset under Construction
Depreciation Posting Program
Documentation: Asset History Sheet
Fiscal Year Change/Year-end Closing
Summary: Closing Operations for Asset Accounting

29. Closing Procedures for Financial Accounting
Accrual/Deferral Postings
Accrual/Deferral Posting: Warehouse Lease
Automatic Postings - Exchange Rate Differences
Exchange Rate Differences in Foreign Currency Balances
Valuating Foreign Currency Balance Sheet Accounts
GR/IR Clearing Account Analysis and Declaring Acquisition Ta
Subsequent BA/PC / Profitablility Segment Adjustment
Flexible Reporting
Financial Statement Versions
Setting Up the Balance Sheet Section of a Fin.Stmnt Version
Setting Up the P+L Section of a Fin.Stmnt Version
Account Group Allocation According to Balance
Texts
Group Evaluations
Grouping within the Company Code
Evaluations by Country Chart of Accounts
Planning
Enter planned values
Plan Versions
Balance Audit Trail (Accumulated)
Volume Problem / Optimizing Run Times
Country-Specific Balance Audit Trail
GL Account = Tax Account
Manual Tax Posting
Non-Deductible Input Tax
Tax Return (RFUMSV00, RFASLM00)
EU Single European Market
Tax Return and Postings
Summary Closing Procedures for Financial Accounting

30. Closing Procedures in Preparation for Consolidation
Scope of Consolidation and Data Transfer
Transferring Financial Statement Data: Periodic Extract
Financial Statement Version for Consolidation
Transferring Financial Statement Data: Realtime Update
Send Data to Consolidation
Carrying Forward via Consolidation Staging Ledger
Summary: Closing Procedures for the Prep. for Consolidation

31. The Individual Financial Closing Process - Integration
Month-End Closing (Example)
Summary Individual Financial Closing Process Integration

32. Financial Calendar
Scheduled Programs and Reports
Status of Scheduled Programs and Reports
Financial Calendar - Monthly Overview
Workflow Integration
Scheduling
Defining Tasks
Schedule
Task + Schedule
Integration
Summary: Financial Calendar

33. Production Startup
Procedure
Data Transfer Methods
Data Transfer Process
Output And Change Program
Scheduling Data Transfer
Preparing for Production Startup
Preparing for Production Startup (2)
Setting the Productive Indicator
Summary: Production Startup

34. Standard Texts And Forms
Forms - Naming Conventions
Forms - Parts Of The Form
Forms - Configuration
Summary Standardtexts and Forms

35. Correspondence and Interest Calculation
Overviews
Automatic Correspondence
Correspondence: Functional Overview 1
Correspondence: Functional Overview 2
From Correspondence Type To Form 1
From Correspondence Type To Form 2
Correspondence - Configuration
Individual Text 1
Individual Text 2
Balance Confirmations
Balance Confirmation
Interest Calculation
Correspondence - Configuration (Interest Calculation Types)
Posting Interest
Summary Correspondence and Interest Calculation

36. Appendix 1: Consolidation Overview
Consolidated Financial Statements (Appendix)
Legal Foundations
Implications of the Single Entity Theory
Disclosure Obligations and Exemptions
Consolidation Functionality
Main Features of Consolidation
Integration of FI-LC Legal Consolidation
FI-LC Implementation Scenarios
Master Data Overview Consolidation
Companies
Subgroups

Classification of FS items
FS Item Attributes
FS items and their Additional Assignments
Preparation for Consolidation
Organizational Structure
Trading Partners in Consolidation
Individual Financial Statements
Overview of Data Input
Data Transfer Monitor
Status Management
Enhanced Integration of FI-LC Additional Account Assignments
Remote Data Entry with MS Access
SAP Data Entry Forms
Validation Checks
Standardizing Entries
Audited Corporate Valuation of Subsidiary Statements
Central Standardizing Entries
Currency Translation
Common Currency Translation Methods
Currency Translation, Translation Sets, Exchange Rates
Consolidation Entries
Intercompany Eliminations
Causes of Elimination Differences
Intercompany Profit/Loss in Transferred Assets
Consolidation of Investments
Information System
Information System, FI-LC Database
Reporting Options
Interactive Reports 1
Interactive Reports 2
Report Writer and Painter for Consolidation Data
Interactive Excel - Reporting with MS Excel
The Principles Behind Interactive Excel
Versions
Simulation Analysis / Version Concept
Version Concept - A Currency Translation Example
Appendix 2: SD and Financial Accounting Integration
Transferring Data from SD
Data Transfer
Reference Numbers / Allocation Numbers
Account Assignment Criteria in the Invoice
Sales Revenue Account Determination
Summary SD and FI Integration
Appendix 3: Overview of Credit Management
Introduction
Composition of Total Liabilities
Local Organization - Central Organization
Credit Limit Per Customer /Group of Customers
Credit Limit for New Customers
Central Data and Data Per Credit Control Area
Disputed Items
When To Review Credit
Summary Credit Management

37. Complex Asset Accounting
Contents Asset Accounting

Organizational Structure of Asset Accounting
Client - Company Code
Chart of Accounts - Chart of Depreciation
Organizational Structure - Example
Asset Accounting Company Code
Cost Accounting Assignment
Client - Asset Class
Summary: Asset Accounting

38. Master Data
Functions of the Asset Class
Definition of the Asset Classes
Account Allocation
Screen Layout for Asset Master Data
Number Assignment
Special Asset Class: Asset under Construction
Special Asset Class: Low Value Assets
Creating the Asset Master Record
Time-dependent Data
Changing assets
The Asset Sub-number
Use of Workflow in Asset Accounting
Bulk Changes using Workflow
Workflow for Bulk Changes (Rule)
Summary: Master Data Asset Accounting

39. Asset Transactions
Asset Accounting as Subsidiary Ledger
Asset Acquisition - Integration
Procedure for Integrated Asset Acquisition
Accounts for Integrated Asset Acquisition
Document Type: Gross or Net
Document Number Range
Transaction Type
Transaction Types and Transaction Type Groups
Asset Acquisition (not integrated)
Asset Accquisition with MM
Asset Acquisition - Master Record
Asset Acquisition - Value Fields
Procedure for Asset Retirement
Accounts for Asset Retirement
Asset Retirement 1
Asset Retirement 2
Workflow for Mass Retirement
Asset Transfer
Assets under Construction
Current-value Depreciation
Summary: Asset Transactions

40. Valuation
The Chart of Depreciation
Comparison of Country-Specific Charts of Depreciation
Asset Classes in the Chart of Depreciation
Depreciation Area XX in the Asset or Asset Class
Valuation Rules
Screen Layout Depreciation Area and Maintenance Level
Depreciation
Depreciation Key
Elements of Depreciation Calculation
Example: Book Depreciation Valuation
Example: Tax Depreciation Valuation
Example: Derived Depreciation Area
Example: Cost-accounting Depreciation Area
Replacement Values
Calculating the Replacement Value
Cost-accounting Interest
Summary: Valuation

41. Periodic Processing
Periodic Processing - Overview
Organizational Procedure for Depreciation Posting
Settings for Posting
Depreciation Posting for Acquisitions During the Year
Year-end Closing
Summary: Periodic Processing

42. Info System
Report Selection
Asset Value Display
Depreciation Simulation
Asset Simulation
Simulation Versions
Depreciation Simulation (Order/Project)
Sort Criteria
Asset History Sheet
History Sheet Changes
Summary: Info System

43. Transfer of Old Assets Data
Transfer of Old Assets Data
Options for Transferring Old Assets Data
Example: Transferring Old Data at Fiscal Year End
Example: Transferring Old Data During Fiscal Year
Automatic Transfer of Old Assets Data
Account Control after Productive Start
Summary: Transfer of Old Assets Data

44. Overhead Cost Controlling
Overhead Cost Controlling Overview
Introduction to Overhead Cost Controlling
Tasks in Overhead Cost Controlling
Overhead Cost Controlling in R/3
Organizational Units in the R/3 System from the CO Standpoin
Assignment of Company Code and Controlling Area
Combination of Company Code and Controlling Area
Summary Overhead Cost Controlling

45. Master Data in Cost Element and Cost Center Accounting
Organizational Units in Cost Element and Cost Center Account
Master Data Groups
Time-Based Creation of Master Data
The Cost Element
Automatic Creation of Cost Elements
The Cost Center
Cost Center Types
Activity Types
Statistical Key Figures
Summary of Cost El. and Cost Center Accoun. Master Data (1)
Summary of Cost El. and Cost Center Accoun. Master Data (2)

46. Transaction-Based Postings
Transaction-Based Postings in Overview
Number Assignment for CO Documents
Account Assignment Logic (1)
Account Testing with Validation and Substitution (1)
Account Testing with Validation and Substitution (2)
Transaction-Based Postings Through Integration
Automatic and Default Account Assignment
Transaction-Based Postings in Controlling
Transaction-Based Reposting
Repost Line Items
Direct Internal Activity Allocation
Activity Recording
Recording Statistical Key Figures
Transaction-Based Postings Summary (1)
Transaction-Based Postings Summary (2)

47. Periodic Allocations
Periodic Allocations in Overview
Imputed Costs
Imputed Cost Calculation: Cost Element Method
Defining the Cost Element Method
Defining the Cost Element Method / Calculation Base
Defining the Cost Element Method / Surcharges
Defining the Cost Element Method / Imputed Object
Imputed Costs: Target=Actual Method (1)
Periodic Reposting
Distribution
Assessment
Applying Periodic Reposting, Distribution, and Assessment
Defining Periodic Reposting, Distribution, and Assessment
Combinable Sender and Receiver Rules
Executing Periodic Reposting, Distribution, and Assessment
Indirect Activity Allocation (1)
Indirect Activity Allocation (2)
Actual Activity Can Be Entered On the Sender
Actual Activity Not Enterable on the Sender
Valuation at Actual Activity Price
Actual Activity Price Calculation
Actual Cost Splitting
Activity Price Calculation with Cost Component Layout
Transferring Statistical Key Figures from the LIS
Periodic Allocations Summary

48. Planning in Cost Center Accounting
Goals of Cost Center Planning
Planning Scope and Techniques/Stat. Key Figures
Planning Scope and Techniques/Activity Types
Planning Scope and Techniques/Costs
Arranging the Planning Screen
Flexible Choice of Planning Views (1)
Versions
Standard Distribution Key: Excerpt (6,7)
Planning Statistical Key Figures
Detailed Planning and Base Unit Costing
Plan Allocation Procedure 3.0C
Activity Type Planning
Activity Price Calculation
Planning Aids
Transfer of Plan Values
Cost Center Accounting Planning Summary (1)
Cost Center Accoutning Planning Summary (2)

49. Activity-Based Costing
Process View versus Cost Center View
Activity-Based Costing Model
Purposes and Goals of Activity-Based Costing

50. Internal Orders: Master Data and Structures
Internal Orders
Advantages of Internal Orders
Order Master Record
Order Type Functions
Status Management for Internal Orders
Order Groups
Order List
Substitution Rules for Orders
Internal Order Master Data Summary

51. Internal Orders: Actual Postings and Commitments
Orders: Flow of Values
Commitments Management: Overview
Real vs. Statistical Orders
Overhead Costing
Surcharges
Settlement: Overview
Settlement Rules in the Order
Settlement with Source Assignment
Hierarchical Settlement
Settlement: Parameters in Customizing
Settlement Structure
Investment Orders
Internal Orders: Actual Postings Summary (1)
Internal Orders: Actual Postings Summary (2)

52. Period Closing in Overhead Cost Controlling
Period Lock
Variance Calculation
Variance Categories: Input Side
Variance Categories: Output Side
Variances: Input Side
Variances: Output Side
Reconciliation Ledger / Reconciliation Postings
Reconciliation Ledger / Reconciliation Reports / Cost Analys
Reconciliation Ledger / Navigation Tool
Reconciliation Ledger Structure
Period Closing Summary (1)
Period Closing Summary (2)

53. Section: Cash Management
Overview Cash Management (1)
Overview Cash Management (2)
Introduction to Cash Management
Problems and Objectives
Procedure for Day-to-Day Planning
Integration: Cash Management Position
Cash Management within the Treasury Environment
Instruments
The Terminology and Contents of Planning
Summary Cash Management

54. Cash Management Position
Displaying the Cash Management Position
Cash Management Position: Groups/Levels
Requirements: Bank Account Structure
Requirement I: Bank-Related Accounting
Requirement II: Bank Accounts
Requirement III: Planning Levels
Currency Display
Features: Cash Management Position
Summary Cash Management Position

55. Customizing the Cash Management Position
Master Record: Planning Level
Bank Account Configuration
House Banks
Bank Accounts
Documents: Value Date
Planning Levels
Cash Management Account Name
Grouping Structure
The Grouping Functions
Summary Customizing the Cash Management Position

56. Cash Concentration
Cash Concentration: Features
Cash Concentration: Cash Management
Cash Concentration: Posting Procedures (Example)
Summary Cash Concentration

57. Customizing Cash Concentration
Cash Concentration - Specifications
Cash Concentration - Settings (Examples)
Cash Concentration - Correspondence
Confirmation: Address and Account No.
Summary Customizing Cash Concentration

58. Manual Planning
Manual Planning: Definition,Use,Maintenance
Creating Payment Advices
Editing Payment Advices
Payment Advice Journal
Summary Manual Planning

59. Customizing Manual Planning
Planning Types
Archive / Automatic Expiration
Archive: Retention Period
Summary Customizing Manual Planning

60. Check Deposit
Check Deposit: Procedure
Account Assignment
Check Deposit Transaction: Initial Specifications
Check Deposit Transaction: Entry Screen for Processing
Check Deposit List
Check Deposit Transaction: Posting/Printing/Overview
Generating the Postings
Summary Check Deposit

61. Customizing Check Deposit
Transactions: Check Deposit
Posting and Account Determination
Simulating the Postings
Creating Screen Variants
Summary Customizing Check Deposit

62. Bank Statement: Manual Entry
Manual Bank Statement: Procedure
Entering the Bank Statement
Processing the Bank Statement (1): Bank / Payment Advices
Processing the Bank Statement (2): Bank Document/Selection
Processing the Bank Statement (3): Further Processing
Summary Bank Statement: Manual Entry

63. Customizing the Manual Bank Statement
Transactions: Manual Bank Statement
Posting: Manual Bank Statement
Account Determination: Manual Bank Statement
Summary Customizing the Manual Bank Statement

64. Bank Statement: Electronic Entry
Electronic Bank Statement: Features (1)
Electronic Bank Statement - New Formats Supported
Interpreting the Note to Payee
Importing the Electronic Bank Statement
Printing the Electronic Bank Statement
Postprocessing the Electronic Bank Statement
Important Notes
Summary Bank Statement: Electronic Entry

65. Customizing the Electronic Bank Statement
Transactions: Electronic Bank Statement
Account Determination: Electronic Bank Statement
Clearing Open Items
Summary Customizing the Electronic Bank Statement

66. Liquidity Forecast
Integration: Liquidity Forecast
Requirement I: Planning Groups
Requirement II: Master Record
Liquidity Forecast: Initial Screen
Payment History - Planning Date
Outstanding Checks and Bills of Exchange
Integration: Payment Blocking Indicator
Integration: Special Transactions
Features: Liquidity Forecast
Summary Liquidity Forecast

67. Customizing the Liquidity Forecast
Master Data: Subledger Accounts
Percentage Distribution
Planning Data: Manual Definition
Blocked Documents
Integrating Special G/L Transactions
Integrating Orders and Purchase Orders: Procedure
Integrating Orders and Purchase Orders: Subledger Accounts
Summary Customizing the Liquidity Forecast

68. Customizing Data Transfer and Reorganization
Data Transfer: Accounts with Open Items / without Open Items
Data Security
Tools: Reorganization
Summary Customizing Data Transfer and Reorganization
PAAC10
PAAC10
SAP Partner Academy SAP Partner Academy

SAP AG
Copyright
Copyright 1996 SAP AG. All rights reserved.
Neither this training manual nor any part thereof
may be copied or reproduced in any form or by any
means, or translated into another language, without
the prior consent of SAP AG. The information
contained in this document is subject to change and
supplement without prior notice.
All rights reserved.

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INFORMIX-OnLine and INFORMIX-ESQL/C are registered trademarks of the INFORMIX
Corporation.

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Topics of PAAC10
Komplex Configuration & Organization in Financial
Accounting
Komplex Asset Management
Komplex Overhead Cost Controlling
Komplex Cash Management

Configuration and Organisation Configuration and Organisation
in Financial Accounting in Financial Accounting

SAP AG
Contents
Chapter 6 Customer Master Data
Chapter 7 Vendor Master Data
Chapter 1 Organizational Structures
Chapter 2 Basic Configuration
Chapter 3 Global Data in the Company Code
Chapter 4 G/L-Accounts
Chapter 5 Bank Master Data

SAP AG
Contents
Chapter 14 Optional Functionalities
Chapter 15 Reporting
Chapter 16 Company-Specific Modifications
Chapter 17 Buchen mit Ausgleich
Chapter 8 Documents
Chapterl 9 Documents Controll
Chapter 10 Postings Transactions
Chapter 11 Konten/Einzelposten
Chapter 12 Foreign Currencies
Chapter 13 Erfassungshilfen

SAP AG
Contents
Chapter 21 Automatic Payments -
Configuration The Payment
Program
Chapter 22 Sonderhauptbuch
Chapter 23 Individual Financial Closing
Procedure
Chapter 24 Closing Operations for Payroll
Accounting
Chapter 18 Automatic Dunning - Operationg
The Dunning Program
Chapter 19 Automatic Dunning - Dunning
Programm Configuration
Chapter 20 Automatic Payments - Operating
The Payment Program

SAP AG
Contents
Chapter 29 Closing Procedures for Financial
Accounting
Chapter 30 Closing Procedures for the
Chapter 31 Integrated Procedure for Individual
Financial Closing
Chapter 32 Finanzkalender
Chapter 33 Produktivstart
Chapter 25 Closing Operations for Accounts
Receivable and Payable
Chapter 26 Closing Operations in Inventory
Accounting
Chapter 27 Closing Operations in Controlling
and in the Projects System
Chapter 28 Closing Operations in Asset
Accounting

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Contents
Chapter 34 Standard Texts And Forms
Chapter 35 Correspondence and Interest Calculation
Chapter 36 Appendix 1: Overview Consolidation
Anhang 2: Integration
Anhang 3: Kreditmanagement

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Chapter Organizational Structures in Financial
Accounting

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Clients In The SAP System
Delivery client
Production client
Test client
Training client

Client: Each client is its own self-enclosed technical entity. General data and tables which are used
by multiple organizational structures are usually stored at this level. Data records carry a client key.
There are only a few client-independent tables (item sorting, for example). A user master record must
be created for each user in the client in which he/she will be working. Access authorization is created
separately for each client.

Delivery system: The SAP system is delivered with clients 000 and 001. These clients contain
settings which you can use as a basis for your own company-specific configurations.

Productive client: The productive client contains company-specific tables, master data and
transaction data for your current business activities.

Test client: You usually perform customizing and testing of old data transferred from other systems in
this client. It will be used later for testing business processes during release updates.

Training client: The training client can be a copy of the test or the productive client, and is used for
internal training. This client is optional.

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Organizational Structure 1 Organizational Structure 1
Financial Accounting Enterprise View
Client
Chart of accounts
Business area
1000
GKR CAUS
001
2000 Make-to-
order prdn.
5000 Repetitive
production
2000 Make-to-
order prdn.
5000 Repetitive
production
3000
Company code

Client: A client is a purely technical entity, it cannot have any actual business-related meaning.
Chart of Accounts: Each company code in the SAP system uses G/L accounts from exactly one
chart of accounts. G/L accounts are uniquely defined within a chart of accounts. You can freely
define IDs for charts of accounts.
Examples for Germany are IKR and GKR
Company Code: In accounting, business transactions are usually entered, stored, further processed
and accounts are managed at the company code level. You can set up several company codes for
each client in order to manage the accounting for multiple independent companies simultaneously.
You must set up at least one company code.
Business area: The business area represents an organizational unit for which you can set up an
internal reporting structure. There can be several business areas in a company code, which may
perhaps even exist in other company codes. Therefore, business areas must have the same
significance in all company codes. The use of this organizational unit is optional. You would use
business areas if you wanted to generate a balance sheet and income statement not only for company
codes, but also for additional internal areas.

SAP AG
G/L account
CoCd segment
Enterprise view: Required reporting for clients with multiple charts of
accounts - option 1
Client
Ch. of accounts
Group ch/accts
Acct no. in Acct no. in
GKR GKR
CAGB CAGB
CAUS CAUS
Company code
G/L account
ch/acct segment
001
GKR CAGB CAUS
INT INT INT
2000
1000 3000
Group
acct no.
Group
acct no.
Group
acct no.
- - - - - - - - -

Client: Each client is its own self-enclosed technical entity. General data and tables which are used
by multiple organizational structures are usually stored at this level. Data records carry a client key.
There are only a few client-independent tables (item sorting, for example). A user master record must
be created for each user in the client in which he/she will be working. Access authorization is created
separately for each client.

Delivery system: The SAP system is delivered with clients 000 and 001. These clients contain
settings which you can use as a basis for your own company-specific configurations.

Productive client: The productive client contains company-specific tables, master data and
transaction data for your current business activities.

Test client: You usually perform customizing and testing of old data transferred from other systems in
this client. It will be used later for testing business processes during release updates.

Training client: The training client can be a copy of the test or the productive client, and is used for
internal training. This client is optional.

SAP AG
Enterprise view: Required reporting in clients with multiple charts of
accounts - option 2
Client
001
Company code
Account no. Account no.
ch/accts INT ch/accts INT
INT
2000 1000 3000
CAGB GKR CAUS
Country ch/acts.
Alternative
account no.
Alternative
account no.
Alternative
account no.
Chart of accounts
G/L account
ch/accts segment
G/L account
CoCd segment
- - -

Client: A client is a technical entity. You determine which structural units will belong to a company
code.

Chart of Accounts: Company codes work with a chart of accounts, so that a unified cost accounting
process can be carried out.

Company Code: Company codes require evaluations based on other charts of accounts. You can
allocate a country-specific chart of accounts to each company code.
In the Alternative account number field, account numbers are stored by each company code, based
on its country chart of accounts.
When generating country-specific balance sheets, set the Alternative account number flag.

SAP AG
Chart of accounts CAGB Chart of accounts CAGB Chart of accounts XYZ Chart of accounts XYZ
SAP
SAP SAP outside SAP outside SAP Client 001 Client 001
Chart of accounts GKR Chart of accounts GKR
Bus.organization Bus.organization
Company code Company code
1000 1000
2000 2000
Company Company
C00002 C00002
Company Company
C00004 C00004
Company Company
C00001 C00001
FS chart of accounts FS chart of accounts
Group Group
Consolidation Enterprise View Consolidation Enterprise View

Company: a company in FI-LC usually represents an independent accounting unit. Every company
code is allocated a single company only.
Companies in FI-LC can represent company codes from various systems (or clients) or even
organizational units from external systems.
Caution: company numbers are 6-character alphanumeric numbers. However, if you have companies
in your group that still work with the R/2 system or dBase PC data entry, you must only assign 4-
character company numbers.
FS chart of accounts: in contrast to the financial accounting module, which uses G/L accounts,
consolidation uses consolidation items.
The information from several G/L accounts may be grouped together to form a consolidation item.

G/L accounts are assigned to consolidation items, both during realtime updates and rollup, on the
basis of the group account number entered in each G/L account, which in each case is matched to a
consolidation item.

If data is entered into the consolidation module by periodic extract, the G/L accounts are assigned to
the consolidation items via a financial statement version whose items correspond to the consolidation
items.

SAP AG
1000
DEM
Financial Accounting/Sales Enterprise View
Client
1100
DEM
3000
USD
3100
USD
1200
DEM
V003
Sales
organization
Credit control area
Company code
001
3000 USD 1000 DEM
V001 V002 V004 V005

Client: The client is a technical entity containing data which can be used by multiple company codes.
Customer master records are subdivided into general and company code-specific data. General data is
valid for all company codes in the client.

Credit control area: Any company code in the SAP system can be allocated to a credit control area
in the same local currency. At this organizational level, you can check receivables due from a
customer in multiple company codes against the customers established credit limit.

Company code: Accounts are generally entered, stored, processed and managed at the company code
level in the SAP accounting system.

Sales Organization: The sales organization is the selling entity in the legal sense. Business
transactions are carried out within a sales organization. A sales organization is allocated to a company
code. You can sell goods and services from multiple plants.

SAP AG
Financial Accounting/Purchasing Enterprise View
Client
001
Company code
1000 2000
E003
E002
Purchasing
organization
E004
E001

Client: A client is a self-enclosed technical entity.

Company Code: Business transactions are entered, stored and processed at the company code level.

Purchasing Organization: Materials and services are created, and conditions of purchase are
negotiated at this organizational level. A purchasing organization can supply multiple plants, and a
plant can be supplied by multiple purchasing organizations. The purchasing organizations should be
assigned to a company code for legal purposes. If this allocation is not defined in Customizing, you
will have to enter the appropriate company code for each document.

SAP AG
Asset Accounting Enterprise View
1 AT
001
1 DE
1000
1200 1100 AT01
AT02
Client
Company code
Chart of depreciation

Client: A client is a self-enclosed, technical entity. General data and tables which are used by
multiple organizational structures are stored at this level.

Chart of Depreciation: This chart is a directory of depreciation areas generated from a business
perspective. The charts delivered with the SAP system include country-specific depreciation
regulations (i.e. depreciation keys). For this reason, all company codes within a certain country will
generally use the same chart of depreciation.

Company Code: Business transactions from Asset Accounting are also usually entered, stored and
evaluated at this level.

SAP AG
Cost Accounting Enterprise View
Client
Chart of accounts
Controlling area
Company code
1000 USA1
GKR CAUS
0001
1000 1100 1200 3000

Client: A client is a self-enclosed, technical entity, often having no business-related significance.

Chart of Accounts: Each company code in the SAP system uses G/L accounts from exactly one chart
of accounts. G/L accounts are unique within a chart of accounts. You can freely define IDs for charts
of accounts.
Examples for Germany are IKR, GKR

Controlling Area: You can carry out complete and self-enclosed cost accounting within a controlling
area. There usually exists a 1:1 relationship between controlling area and company code. You can
allocate multiple company codes to a controlling area for intercompany cost accounting purposes.

Company Code: In the accounting system, business processes are usually entered, stored, processed,
and accounts are managed at the company code level. You can set up multiple company codes for
each client so that several independent firms can be simultaneously managed in the accounting
system.

SAP AG
Summary: Organizational Structures
The delivery client is copied to a test client. This is where
the configuration settings are made and the business
processes and transferred legacy data are tested. The
final settings are then transported into the production
client.
The system contains several organizational units which
you can use to represent the organizational structure of
your business. The reports that you want to make or are
required to make determine the structure of the
organizational hierarchy in the SAP system.
If you are running several integrated SAP modules
together, you must remember to take account of the
requirements of other areas.

SAP AG
Chapter Basic Configuration

SAP AG
Configuration Project Steps
I
I
II II
III
III
Determine the Determine the
organizational structure organizational structure
Adapt to accommodate Adapt to accommodate
company-specific company-specific
features features
Enhance and Enhance and
modify with extra modify with extra
functionality functionality

You can mold the SAP R/3 standard software into a form which is uniquely specific to your
enterprise, using a multitude of table and customizing entries. Which entries you will make depends
entirely on your companys specific needs. Some entries are country-dependent and affect all
industries and/or countries. You do not need to make these entries yourself.

The more your requirements vary from the standard system configuration, the greater your
implementation efforts will be prior to productive startup.
I ) You receive a standard configuration from SAP. You then make company-specific adaptations
which contain data for your own enterprise.
II ) You change and enhance some settings by using default values supplied by SAP.
III ) You require comprehensive adaptations and enhancements and use other functions of the R/3
system.
This course deals mainly with topics listed under I ). Adaptations for points II ) and III ) are covered
in project work.

SAP AG
Breakdown Of Configuration Levels
Global Settings
Accounting Accounting
HR HR
Central Functions
Basis
Logistics Logistics

Global settings are preconfigured to fit country-dependent general data by SAP. You do not need to
modify them. You only need to change the countries table if you have business relationships with
countries which are not included in the standard system.
You define organizational structures based on the legal and business climate in which your firm
operates. This is where you make organizational decisions which are also required in other
applications, such as Cost Accounting, Sales & Distribution, Materials Management, etc.
Project members in the Logistics, Accounting and Human Resources departments will carry out the
customizing activities for those individual applications affecting their areas. For example, if you are
implementing SAP R/3 Logistics and Accounting modules, some common decision-making between
areas must take place in order to make certain settings.
Central functions are not designated as country-dependent and can be used by multiple applications.

Example Authorization concept, Hypertext, Office Communication
Basis settings affect users, hardware components and the software setup.

SAP AG
Maintain global parameters for company code
Create/copy/change company code
Maintain company-specific entries
Check/complete global settings

The countries table belongs to Global Settings. It contains general country data
i.e. ISO code for country and currency
and field parameters, for which formal validations are carried out
i.e. postal code lengths, bank number lengths, VAT registration number check digits.

Therefore, you only have to maintain the countries table if legal changes have taken place affecting
data stored there. You must add to the table if new countries are formed, if you intend to have
business relationships with companies from those new countries.

SAP AG
Create and save transport request Create and save transport request
Transport request allocated a number by system Transport request allocated a number by system
Transport request released Transport request released
Process proposal list Process proposal list
Copy company code Copy company code
Copying a company code:

You can start the copy transaction immediately if you want to copy a company code which matches
the company code template in terms of country, currency and language.

If you do not have an appropriate copying template, create an entry using the Customizing menu for
the new company code Corporate structure Def. Financial Accounting Create company code.
Then, start the copy transaction.

Caution: If currencies are different, number values will not be converted when transferred!
You can find further information on adjustments and transports in the Basis Online Documentation
under the topic BC Workbench Organizer.

SAP AG
R
FI Customizing Copy Functions
Chart of accounts Chart of accounts 100 % 100 %
to another chart of to another chart of
accounts accounts
100 % 100 %
or less or less
to another company to another company
code code
Compare company Compare company
codes codes
selective selective
between one or more between one or more
company codes company codes
Copy according to Copy according to
reference reference
selective selective
in the same or in the same or
different company different company
code code

The copying function duplicates data within a client
The functions illustrated above can:
Copy a chart of accounts: Create accounts in a chart of accounts
Take over account determination
Financial statement/P&L version
-> see G/L Accounts unit.
Copy a company code: Set up a new company code that is 100% (or less)
identical to the reference company code
-> see following pages and G/L Accounts unit.
Compare company codes: Data distribution up to 3.0B; beginning with 3.0C, in the menu
for customers, vendors, and G/L accounts each under Master data
You create company code segments for selected accounts and
company codes.
Copy according to reference: You set up new general ledger accounts.
-> see G/L Accounts unit.

SAP AG
Transport functions:
100 % 100 % into another client into another client
Company code Company code 100 % 100 % into another client into another client
Chart of accounts Chart of accounts
050 050 001 001

The transport function allows duplication of data in other clients. This is how table entries are
transported from the test client (050) to the productive client (001) after a comprehensive test during
release upgrades.

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Allocate organizational units
Define organizational units

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Summary: Basic Configuration
You can tailor the scope of the the project work to meet
your requirements. Create your own project guide,
containing all the critical activities and the optional
activities. Then check which extra functionality you want
to use.
First assign names to your organizational units, then
allocate them.
Check the global settings and add any necessary settings.
Use the copying and transport functions to configure your
system.

SAP AG
Chapter Global Data In The Company Code

SAP AG
Minimum entries
Organization Of Accounting
Chart of accounts Chart of accounts INT INT CAUS CAUS
Fiscal year variant Fiscal year variant K4 K4 K4 K4
Production company code Production company code X X

You have the capability to mold the SAP standard software to fit your company, using a variety of
table and customizing entries. You make these entries according to your companys own requirements.
Some entries are country-dependent and are applicable for all industries and/or companies in those
countries. You do not need to make these entries yourself.

You should not enter the X for the Company code is productive flag until you are ready to start
running your business with the SAP R/3 system.

SAP AG
Minimum entries
Procedural Parameters
Field status variant Field status variant 0001 0001 0001 0001
Var.posting periods Var.posting periods 0001 0001 0001 0001
Maximum exch./rate diff. Maximum exch./rate diff. 10 % 10 % 5 % 5 %

A field status variant is a combination of several field status groups. The field status group defines
which fields will be ready for input during document entry. A field status variant is assigned to each
company code.

Posting periods variant

Maximum difference between exchange rates

SAP AG
Minimum required entries
Address
Title
Name
Street
City
Country
Tel.no.
Fax
USA
Search term
Postal code
Language E

Optional entries are:
Sort.Field Sorting field Field for an additional search term
P.O. BOX P.O. Box Post office box number
Pcode Postal code for the P.O. Box if you enter a P.O.Box number, you must enter
the postal code here
Region Region user-defined, from a table
US = States
D = Bundeslnder
CH = Cantons
F = Departments
Teletex Teletex number
Telex Telex address

SAP AG
Additional Specifications
Z5A Description of industry
Z5A: Acct.clerk and tel.no.
Z5A: (six-character) Reporting no.
Z5A: Federal state number
Z5A: Address of reporting comp.
Minimum Entries

Here you enter company-specific data for reporting required by foreign trade law.
(Form Z5A).
You can obtain your data from previously issued official documents.

SAP AG
Summary: Global Data In The
Company Code
You are now acquainted with the minimum company-
specific entries you need to make for a company code.
You make any other specifications in the appropriate
configuration menu for the function in question. You
usually make such specifications for each company code.
Some functions allow you to use another company code
as a reference for copying. You can copy the extra
specifications to other company codes using the copy
function.

SAP AG XXYYY / 22 - 1
R
Chapter General Ledger Accounts

SAP AG
Vendors
Customers
Banks
G/L accounts

Master data in Financial Accounting consists of the G/L accounts, the bank directory and the vendor
and customer addresses.

G/L accounts in centrally organized companies can be identical across several company codes. If
some of the company codes are in different countries, you have the option of entering an alternative
G/L account number in each countrys chart of accounts.

The bank directory is imported into the R/3 system and is available for all company codes.

Each vendor and customer has a unique subledger account within a client. You can set up control of
these subledger accounts differently in each of your company codes.

Example: Company code 0001 allows a customer (customer account 100000, IDES INC. ) a longer
cash
discount period than the same customer in company code 0002.
Subledger account 100000 and the address are identical in both company codes, however
the terms of payment keys are different.

SAP AG
Chart of acts
INT
Maint.language:
D
Alternative langs:
EFIKN
Group ch./accounts
(optional)
Length of
G/L account number:
6
Vendors Vendors
Customers Customers
Banks Banks
G/L accounts
IKR IKR
Chart of accounts
GKR

The chart of accounts is a user-defined one- to four-digit code which also contains information about
the length of the G/L account numbers. There are country-dependent charts of accounts in clients
000 and 001 which you can use.
Recommendation: If you are use the GKR or IKR charts for German company codes, the G/L
accounts already contain the required settings for an integrated organizational solution.

You can enter account names manually during installation or at a later date.
You define the languages in which the G/L account names should be translated in the chart of
accounts. The name is displayed in the language in which you logged on to the system.

SAP AG
G/L Account Master Record
Company code data
Ch./accounts
G/L account
G/L account
Kontenplan
Sachkontenlangtext
Currency Currency
Tax category Tax category
Reconciliation account Reconciliation account
Open item management Open item management
Line item display Line item display
...... ......
Domestic customer receivables
Dom.cust.recvables
140000
INT

G/L account master records are composed of two areas:
a chart of accounts area
a company code-specific area.

The chart of accounts area shows the specifications which contain cross-company code functions. The
company code-specific area contains those pieces of information which can be formatted differently
in different company codes.

You always enter the chart of accounts area first when creating an account. Then you can enter the
company code-specific area. You can create a G/L account in one step using the Create in company
code function, or with the following 2 steps - 1. Create in chart of accounts, 2. Create in company
code.
You do not need to enter the company code-specific data for a G/L account if it is not needed in a
particular company code.

SAP AG
AS Fixed assets
CASH Current assets/liabilities acts
GL General G/L accounts
MAT Material stock accounts
PL Revenue accounts
Chart of
account
INT

The Financial Accounting component offers a wide range of fields in the G/L account master record
in which you can store company-specific data. You can suppress fields you do not require in order to
give your screen a cleaner appearance. You can configure other fields in such a way that a user entry
is required in order to proceed. You can control these company-specific settings via the account
group.

There are preconfigured account groups in clients 000 and 001 which you can use.

When creating a new account, you are asked to enter the account group. This means that you will
require at least one account group. If you will not be using the account groups to distinguish multiple
number ranges or formats, you can define an account group in Customizing in which all fields of the
G/L account master record are ready for input.

SAP AG
Account groups Account groups
CASH Curr.as/li.acts
Control Control
Currency Currency required required
Recon.acct Recon.acct suppress suppress
Bank details Bank details
House bank House bank optional optional
Account ID Account ID optional optional

The account group represents a number of G/L accounts, which can be grouped by functional areas,
for example. All cash-related or bank G/L accounts have the same fields in the master records, for
example bank details. These bank details fields are not required for G/L accounts pertaining to asset
accounting and can be suppressed in that account group.
Asset portfolio G/L accounts are set up as reconciliation accounts in Financial Accounting, where FI
is integrated with Asset Accounting. The field status in this account group must be set for either
optional entry or required entry so that a valid value can be entered in the G/L account master
record.

SAP AG
Control Control
Currency Currency required required
Recon.account Recon.account suppress suppress
House bank House bank optional optional
Account ID Account ID optional optional
The G/L account field must
contain a valid value
The field is not displayed in
the G/L account
The field is displayed in the
G/L account and can contain
a value (optionally)
Account groups

You can assign one of four different field statuses to a field:
suppress
required entry
optional entry
display.

If a field has required entry status, a question mark appears at the beginning of the field whenever
you create or change a G/L account. You must make a valid entry in this field. Certain fields only
allow entries taken directly from a table containing country or company-dependent data. If entries
made for a field are checked against a table, you can always use the F4 key to check the list of
possible entries.
If the status display was assigned, the field name is displayed in the G/L account master record.
However, you cannot enter a value in the field. You can use this status for fields which were set as
optional entry in a previous step and for which data was then input, so that in later steps the field
will be protected from change, although the original entry will still be visible on the users screen.

You can always change a fields status. These changes will then have immediate effect when you
create or change an account.

SAP AG
Posting document
Amount 100.00
Tax amount 15.00
Tax key V1
Posting document
Amount 100.00
Field control:
Optional
G/L account: 300000
Chart of accts: INT
Name: Raw mat.
Tax category: V1
Chart of accounts:
Field control:
Suppress
Chart of accounts:
G/L account: 113160
Chart of accts: INT
Name: US dollar account

If the suppress status was selected, the field will not be displayed for any G/L accounts in the
account group, and is therefore also not available for data input

If you specify that a field inn a master record should be suppressed for an account group, this will
have an effect on your control of the document entry process.

Fields with optional entry status are available for data input whenever you create or change a G/L
account. Some fields only allow entries taken from a table containing company or country-specific
data. When you make an entry in one of these fields, the value entered will be checked against the
table. In such cases, you can always make use of the F4 key to display possible entries onscreen.
Data input in these fields is optional. You can also input data here at a later point in time when
working in change mode.

SAP AG
Summary: General Ledger Accounts
Delivery clients contain country-specific charts of
accounts that you can use as a reference to set up your
own charts of accounts.
You determine via the account group which fields in the
G/L account master record wil be displayed (and which
fields require an entry). You can usually copy these
configuration settings without changing them.
When you create G/L accounts, the contents of the
optional and required entry fields are checked against
the configuration entries you made for your company.

SAP AG
Chapter Bank Master Data

SAP AG
House Bank Master Data
Import the bank
numbers
Define house
banks
Vendors Vendors
Customers Customers
G/L G/L
accounts accounts Banks
Bank details
Customers
Vendors

You must create master data for those banks
that are your house banks and
that are the house banks of your customers and vendors.

SAP AG
Bank Bank
details details
Batch input:
automatic copying
Create sub-leger accounts:
bank details
One-time account document entry:
bank details
Create bank details:
manual entry

The bank directory is stored in table BNKA.

You can enter bank data into the directory in various ways:
using the appropriate SAP program RFBVD__1 for Germany
RFBVIT_0 for Italy
RFBVCH_0 for Switzerland
importing a disk from your house bank which contains the current bank numbers
via the bank details fields when creating customer or vendor master records
via the bank details fields in documents when posting one-time transactions
via the transaction for creating banks.

When you enter bank details, the system uses the field checks from the country-specific table.

SAP AG
Bank Bank
details details
House bk House bk Ctry Ctry Bank key Bank key
CITBA CITBA US US 672 700 00 672 700 00
WACHO WACHO US US 672 800 00 672 800 00
House bank data:
US US 672 700 00
Address
Bank
Region
Street
City
Control data

For each of your company codes you enter the company-specific names of your house banks under a
user-defined key term. This bank ID can be alphanumeric:

Example:
Citibank CITBA
Wachovia WACHO
Bank of America BOA
Wells Fargo WELLS
First Union UNION
You use these IDs as control parameters for the payment program.

SAP AG
House bk House bk Ctry Ctry Bank key Bank key
CITBA CITBA US US 672 700 00 672 700 00
WACHO WACHO US US 672 800 00 672 800 00
Bank accounts Bank accounts Acct ID Acct ID
Deposit account Deposit account GIRO1 GIRO1
Credit account 1 Credit account 1 GIRO2 GIRO2
Dollar account Dollar account USD1 USD1
Postal check account Postal check account POST POST
or or
120 34 56 78 120 34 56 78 5678 5678
26 83 17-600 26 83 17-600 P600 P600
House bank data:
US US 600 300 10
Address
Bank
Region
Street
City
Control data

For each company code you enter the company-specific bank accounts you have created for each of
your house banks in the system under a user-defined key term. This account ID is unique per
company code and house bank. It can be alphanumeric:

Example:

Checking account 1 GIRO1
Checking account 2 GIRO2
Foreign exchange account 1 DEVI
You use these Ids as control parameters for running the payment program.

You must create a G/L account master record for every bank account. You then define the key terms
for the house bank and the account ID in this G/L bank account.

If you manage accounts in foreign currency, the currency key in the G/L account master must be
identical to the currency of the foreign exchange account.

SAP AG
Creating House Banks/Bank Accounts - Bank Account Data
Ch./accounts
INT
Company code 0001
House bank CITBA
Account ID GIRO1
Bank country US
Bank key 672 700 00
Bank account data
Bank accnt 12345678
Currency USD

The link between the G/L account and the actual bank account is made by the house bank
specifications and the account ID.

However, in the standard FI module, these specifications are merely informative and have no other
function.

To control the payment program you must define both the SAP G/L account and the account ID for
your bank account at your house bank in the account determination table
(see chapter Configuration Of The Payment Program)

SAP AG
R
Summary: Bank Master Data
The banks you want to use for your financial transactions
are defined as house banks in the SAP system. The
specifications made for them in the system effect the
automatic payment function.
There are several ways to set up the bank directory.

SAP AG
Chapter Customer Master Data

SAP AG
Vendors Vendors
G/L accounts G/L accounts
Banks Banks
Customers

Customer accounts are managed in sub-ledger accounting. This is linked to general ledger accounting
via the reconciliation account (G/L receivables account).

You enter important information and control data in the customer master records:
Address
Reconciliation account
Terms of payment
Correspondence data.

You can change or supplement the master data at any time.

SAP AG
Reconciliation acct Reconciliation acct nnnnnn nnnnnn
Payment terms Payment terms ZB01 ZB01
Item sorting Item sorting 0005 0005
Dunning procedure Dunning procedure 0001 0001
: :
Dunning procedure Dunning procedure 0002 0002
: :
Name 1 Name 1
Name 2 Name 2
Address Address
Tel.no. Tel.no.
US 500 500 10 123 456 78 US 500 500 10 123 456 78
Customer Master Record
Client General data
Bank details
Company code
0001 0001 0003 0003
Company code data Company code data

When creating a customer master record you enter
the general data at client level
the company code data for each company code.

The client-level data is available for every company code. The sub-ledger account number is also
assigned at this level. This means that a customer has the same unique customer number in all
company codes.

Recommendation: Before you create a new master record, you should check thoroughly (using
several
matchcodes) that this customer does not already exist in the system. Use several
different search terms (postal code, city, parts of the name of the customer).

The information on the customer may be different in several company codes. When creating a new
master record, you can use an already-defined master record as a reference to speed up the data entry.

SAP AG
Terms of payment Terms of payment ZB01 ZB01
Item sorting method Item sorting method 0005 0005
Dunning procedure 0001
:
Terms of payment Terms of payment ZB20 ZB20
: :
. . . . . .
Trading partner C00001 Trading partner C00001
US 500 500 10 123 456 78 US 500 500 10 123 456 78
Client General data
Bank details
Company codes
0001 0001 0003 0003
Control

Customers and vendors who represent affiliated companies are flagged with the respective company
ID. This is done by maintaining the company ID within the account control. This way a link between
customers or vendors and the company is established.

Affiliated companies are given their own reconciliation accounts. This means that it is not necessary
to create an individual sales revenue account for each affiliated customer. Elimination within
consolidation is carried out via the trading partner who is entered in the document.
The company must have been created as an internal trading partner.

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Sales district Sales district NORD001 NORD001
Sales office Sales office B001 B001
Price group Price group 01 01

General data
Bank details
Accounting
Sales
General
Client
Company code 0001

If you use the Accounting module as a stand-alone application, you must enter all the data necessary to
process business transactions in financial accounting.

If you use the Accounting module together with the Sales and Distribution module, you can use more
fields. You can also access the information in these Sales and Distribution fields from the Financial
Accounting module.

You must enter more data in order to be able to run evaluations in Cash Management.

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Accounting
Financial accounting
Accounts receivable
Master records
Create
= =
Logistics
Sales
Master records
Customer
Create
= =
A
c
c
o
u
n
t
i
n
g
S
a
l
e
s
Company code data
Sales
Company code data

If you use both the Accounting module and the Sales and Distribution module in a fully integrated
system, you can use more fields in the master record. These fields contain information and control
data that is needed to process business transactions in the sales and distribution area.

The fields in the customer master record are divided between the accounting and sales areas. Address
data, such as
Name
Address
Language indicator
Telephone / Fax
are used by both areas.

You can specify which of these fields are required entry or optional entry fields and which are
suppressed from display altogether when you define the field status groups.

Recommendation: Define compulsory rules for the address format that are acceptable in both
accounting and sales.

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Financial accounting
Accounts receivable
Master records
Create centrally
=
Accounting
Company code data
Sales
Company code data
Accounting
+

You can access the information entered in the sales area from the financial accounting area. Using the
central customer master data transaction, you can create, change and display sales data in this way.
Recommendation: When configuring key terms within customizing, be sure to select
widely-known company-specific names or abbreviations that are easy to
interpret.

When defining such key terms and specifying number ranges it is advisable to first consult other
departments in your organization which will be affected by these specifications.

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Customer Master Records
Assignmt
Account
group
Interval Scrn layout Account no.
Master Data - Account Group
Domestic
customers
DEBI DEBI numerical
10,000-
49,999
internal
Title Title
Name Name
Customers
abroad
DEBA DEBA numerical
50,000-
89,999
internal
Title Title
Name Name
Incoterms Incoterms
Affiliated VERB VERB alphanumeric A - Z external
Name Name
One-time CPD CPD numerical 90,000 internal
Title Title
Name Name
Address Address

The account group is a set of characteristics that control the management of master records.

You can define several account groups for the account type customer. The criteria for creating
account types are
number range
field status for the master data.

When you create a master record, you must specify an account group.

You can create a one-time account group for customers who are not likely to buy goods/services
from you more than once. This account group may have the same field status groups as another
account group. The main difference, however, is that the address has to be entered in the document
itself (not usually the case). All that you require is a sub-ledger account for the one-time customer
master record.

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Number Ranges
01 0000010000 0000049999 0
03 0000090000 0000090000 0
02 0000050000 0000089999 X
Define 1st Interval
No. From number To number Current no. Extern.
04 A1 ZZ
X
2nd allocation: number range interval to account
group
DEBI Domestic customers
VERB Affiliated companies
01
04

The sub-ledger account number (customer number) can be up to ten characters long. It may contain
both digits and letters. Any characters you do not use are filled with leading zeroes. You do not have
to enter these zeroes, however, when entering this number anywhere else as a selection criterion.

You can define several intervals. These must not overlap - if you define overlapping intervals the
system issues an error message.

If you are working with external number assignment the system checks whether the customer number
you have entered has not already been used. The system does not, however, check whether any
numbers in the range have been missed out. The number status field does not contain any
information on the last number assigned.
Recommendation: The most efficient way to create master records is to work with number
ranges that use internal assignment.

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Summary: Customer Master Data
The customer master record consists of a header portion,
which contains the data and control information valid for
all company codes, and a company code-specific portion,
which can contain whatever information you require for
each company code.
You control which fields in the customer master record
are displayed (or which ones require an entry from the
user) using the account group. You can generally copy
such configuration settings from the SAP standard
system without changing them.
When a user creates a G/L account, the contents of the
optional and the required entry fields are checked
against the configuration settings you made in your
system.
The number ranges contain the number range interval and
the number assignment method.

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Chapter Vendor Master Data

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Customers Customers
Banks Banks
Vendors

Vendor accounts are managed in sub-ledger accounting. This is linked to general ledger accounting
via the reconciliation account (G/L payables account).

You enter important information and control data in the vendor master records:
Address
Terms of payment
Bank details
Correspondence data

You can change or supplement the master data at any time.

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Name 1 Name 1
Name 2 Name 2
Address Address
Tel.no. Tel.no.
US 500 500 10 123 456 78 US 500 500 10 123 456 78
Vendor Master Record
Client
Company code
1000 1000 1100 1100
General data
Bank details

When creating a vendor master record you enter
the general data at client level
the company code data for each company code.

The client-level data is available for every company code. The sub-ledger account number is also
assigned at this level. This means that a vendor has the same unique vendor number in all company
codes.

Recommendation: Before you create a new master record, you should check thoroughly (using
several
matchcodes) that this vendor does not already exist in the system. Use several
different
search terms (postal code, city, parts of the name of the vendor).

The information on the vendor may be different in several different company codes. When creating a
new master record, you can use an already-defined master record as a reference to speed up the data
entry.

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Purchase order curr. Purchase order curr. USD USD
Minimum order value Minimum order value 1,000.00 1,000.00
Salesperson Salesperson Mr.West Mr.West
Telephone number Telephone number 06122/34-0 06122/34-0

Accounting
Purchasing
General
Client General data
Bank details
Company code 0001

If you use the Accounting module as a stand-alone application, you must enter all the data necessary
to process business transactions in financial accounting.

If you use the Accounting module together with the Purchasing module, you can use more fields. You
can also access the information in these Purchasing fields from the Financial Accounting module.

You must enter more data in order to be able to run evaluations in Cash Management.

Vendors who do not actually ship goods but who are paid with the automatic payment process only
require the accounting data.

EXAMPLES: Civil authorities, health insurance companies, general insurance companies,
service companies and employees (settlement of travel expenses).

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Accounting
Purchasing
Accounting
Vendors
Master data
Create
= =
Materials management
Purchasing
Master data
Vendor
Create
= =
A
c
c
o
u
n
t
i
n
g
P
u
r
c
h
a
s
i
n
g
Company code data
Company code data

If you use both the Accounting module and the Purchasing module in a fully integrated system, you
can use more fields in the master record. These fields contain information and control data that is
needed to process business transactions in the materials management area.

The fields in the vendor master record are divided between the accounting and purchasing areas.
Address data, such as
Name
Address
Language indicator
Telephone / Fax
are used by both areas.

You can specify which of these fields are required entry or optional entry fields and which are
suppressed from display altogether when you define the field status groups.

Recommendation: Define compulsory rules for the address format that are acceptable in
both
accounting and purchasing.

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Vendor master records
Assignmt
Account
group
Interval Scr.layout Account no.
Master Data - Account Group
Domestic
vendors
KRED KRED numerical internal
Title Title
Name Name
Vendors
abroad
KREA KREA numerical
50,000-
89,999
internal
Title Title
Name Name
Incoterms Incoterms
Affiliated VERB VERB alphanumeric A - Z external
Name Name
One-time CPD CPD numerical 90,000 internal
Title Title
Name Name
Address Address
10,000-
49,999

The account group is a set of characteristics that control the management of master records.

You can define several account groups for the account type vendor. The criteria for creating account
types are
number range
field status for the master data

When you create a master record, you must specify an account group.

You can create a one-time account group for vendors who are not likely to supply you with
goods/services more than once. This account group may have the same field status groups as another
account group. The main difference, however, is that the address has to be entered in the document
itself (not usually the case). All that you require is a sub-ledger account for the one-time vendor
master record.

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Number Ranges
01 0000010000 0000049999 0
03 0000090000 0000090000 0
02 0000050000 0000089999 X
Define 1st interval
No. From no. To number Current no. Extern
04 A1 ZZ
X
2nd allocation: number range interval to account
group
KRED Domestic vendors
VERB Affiliated companies
01
04

The sub-ledger account number (vendor number) can be up to ten characters long. It may contain
both digits and letters. Any characters you do not use are filled with leading zeroes. You do not have
to enter these zeroes, however, when entering this number anywhere else as a selection criterion.

You can define several intervals. These must not overlap - if you define overlapping intervals the
system issues an error message.

For numerical intervals you can specify whether the numbers are assigned externally or internally
when you create a master record. Internal number assignment means that the numbers are assigned by
the system automatically. The last number assigned (displayed in the number status field) is
increased by one. If you select external number assignment, you are prompted to enter your own
number when creating a master record.

If you are working with external number assignment the system checks whether the vendor number
you have entered has not already been used. The system does not, however, check whether any
numbers in the range have been missed out. The number status field does not contain any
information on the last number assigned.

Recommendation: The most efficient way to create master records is to work with number
ranges that use internal assignment.

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Summary: Vendor Master Data
The vendor master record consists of a header portion,
which contains the data and control information valid for
all company codes, and a company code-specific portion,
which can contain whatever information you require for
each company code.
You control which fields in the vendor master record are
displayed (or which ones require an entry from the user)
using the account group. You can generally copy such
configuration settings from the SAP standard system
without changing them.
When a user creates a G/L account, the contents of the
optional and the required entry fields are checked
against the configuration settings you made in your
system.
The number ranges contain the number range interval and
the number assignment method.

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Chapter Documents

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Reconciliation Account
Customer 1 Customer 1
1,000
Customer 2 Customer 2
500
Subledger
Reconciliation account Reconciliation account
domestic receivables domestic receivables
500 1000
General ledger

In the master records for customer and vendor accounts, you specify a reconciliation account (for
example, payables, receivables) for each company code.
Every time you post to a customer or vendor account, the system automatically makes a corresponding
posting to the appropriate reconciliation account (in the general ledger).

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Document Principle
Invoice
Date
IDES Inc.
115
3 widgets 100
Tax 15% 15
From
Widgets Inc.
1 business transaction 1 business transaction
= =
1 document 1 document
= =
Document no. 1300001234
Expense 100
Tax 15
Cash 115
1300001234

In the SAP system there is a document for every business transaction. This document is assigned a
unique SAP document number.
You can either have the system assign document numbers (internal assignment) or assign them
yourself (external assignment).
The document number links the original document (filing) to the system document and vice versa.

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Document Structure
Docment header
Document date, Entry date, Entered by Document date, Entry date, Entered by
Document type, Currency, Document number, ... Document type, Currency, Document number, ...
Line item 1
Posting key 01 01
Account Smith Smith
Amount 1,150 1,150
Line item 2
Posting key 50 50
Account Sales revenue Sales revenue
Amount 1,000 1,000
Line item 3
Posting key 50 50
Account Tax Tax
Amount 150 150
Balance = 0

Every document consists of:
a header
The document header contains general data which applies to the entire document.
- posting date
- document number
- document type
- currency and so on.
at least two line items (maximum 999).
Every line item consists of at least
a posting key,
an account number,
an amount.
You can post a document only if its balance equals zero.

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Basic Posting - Document Header Data

Document date MM/DD/YY
Document type SK
Company code 0001
Posting date MM/DD/YY
Document number XXXXXXXXXX
Header text Aaa--25--aaA
______________________________________
Posting key 40 Account 476000

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Basic Posting - First Line Item

Amount 100
Tax code V1
Account... 476000 Office supplies
Company code 0001
Debit entry
Posting key 50 Account 100000

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Basic Posting - Next Line Item

Business area .
Cost center .
Order .
Project .
Allocation
Text
Pst key . . 50 Account 100000

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Posting Keys
Company
Widgets Inc.
Invoice 1800000025
Date 03/25/YYYY
Goods 1,000
Tax 100
Total 1,000
Document type DR Posting key
01 01
50 50
Outgoing invoice Outgoing invoice
Account type D Account type D
Debit Debit
Relevant to sales Relevant to sales
G/L assignment G/L assignment
Account type S Account type S
Credit Credit

Posting keys control the entry of line items.
Example: (S=relevant to sales, N=not relevant to sales)

Debit Customer accounts Credit
01 S Invoice 11 S Credit memo
02 S Reverse credit memo 12 S Reverse invoice
05 N Outgoing payment 15 N Incoming payment

Debit Vendor accounts Credit
21 S Credit memo 31 S Invoice
22 S Reverse invoice 32 S Reverse credit memo
25 N Incoming payment 35 N Outgoing payment

Debit G/L accounts Credit
40 Debit entry 50 Credit entry

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Posting Keys
Field status
General data General data
Additional assignments
Payment transactions
Asset accounting
Taxes
Foreign payments

General data General data Supp. Supp. Req. Req. Opt. Opt.
Allocation number
Text
Invoice reference
Hedging
Allocation __ Invoice reference __
Text __ Hedging __

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Field Status Definitions (G/L Accounts)

Company code: 0001 Company code: 0001
Field status group Text
G001 General text / allocation
G005 G005 Bank accounts Bank accounts
. . .
Account Bank 1
Co. code 0001
Field status group G005 Bank accounts G005 Bank accounts

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Screen Modification

Field status
(Posting keys)
Supp. Req.Opt.
Allocation
Text
. . .
Value date
. . .
Field status
(G/L account master)
Supp. Req.Opt.
Allocation
Text
. . .
Value date
. . .
Linking rules
Supp. Supp. Error Supp.
Req. Error Req. Req.
Opt. Opt. Supp. Supp. Req. Req. Opt. Opt.
O
p
t
.
O
p
t
.
S
u
p
p
.
R
e
q
.
Value date ?
Allocation __
Text Text __ __

Every G/L account has a field status entry in its master record which controls the display of individual
fields depending on the settings made in customizing for document entry. You specify whether entries
in these fields are optional or required.
In customizing you can also set the status of fields under posting keys. The posting keys delivered with
the standard SAP system have field status definitions which are all preset to optional entry. This
means that the field status controls from G/L accounts control document entry.
If you change the standard settings in the G/L account field status and in the posting keys, the
specifications made in posting keys have priority over those made for G/L accounts.
When posting to customer or vendor accounts, the field status of the corresponding reconciliation
account applies to those accounts.

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Display / Change Document
Header
Item 001
Item 002
Item n
01 Invoice
1,000
ZB01 04/01/YY
130000001234 ZB05 04/01/YYYY
Documents Documents Changes Changes
Change rules
Is field changeable?
Field description
in repository
Field documenta-
tion required?
Ax

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Document Change Rules
Act type Trans.Type Field name CC Field description
D BSEG-HBKID House bank
D BSEG-MABER Dunning area
D BSEG-MADAT Last dunned
D BSEG-MANSP Dunning block
D BSEG-MANST Dunning level
Field name BSEG-MANSP Dunning block
Rule is valid for
Account type D Customer items
Transaction type Payments, invoices, credit memos
Company code
Possibility of changing the field
X Field is modifiable
Stipulation for changing
X Line item is not cleared

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Document Reversal
Document 13000012
Document type DR
Posting key 01
Amount 1,150
Posting key 50
Amount 1,000-
Posting key 50
Amount 150-
Customizing
Document type Reverse doc type
DR = DS
Posting key Reverse post key
50 = 40
Document 15000003
Document type DS
Posting key 12
Amount 1,150-
Posting key 40
Amount 1,000
Posting key 40
Amount 150

Every posting key is assigned a reverse posting key in customizing. The reverse posting key contains
specifications for the offsetting entry which reverses the document.
Each document type is assigned a reverse document type as well. When defining document types, you
also specify the interval for the document number range.
You can define other document types to fit your company-specific requirements or use the same
document type for the reverse entry.
If you define for the reverse document type the same number range as in the original document type,
reverse documents will be posted using the same document number range.

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Default Values
Transaction Document type Posting key
F - 01 Enter sample document AB
F - 02 Enter G/L account posting SA 40
. . .
F - 22 Enter customer invoice DR 01
. . .
F - 28 Post incoming payment DZ 15
. . .
F - 43 Enter vendor invoice KR 31

The system can default posting keys and document types for transactions in Financial Accounting.
When you post a vendor invoice, for example, it will default posting key 31 and document type KR.
You can set default values to the document types of the respective company.

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Summary: Documents
Every business transaction is represented by a document
which is posted in the R/3 System.
A document in the R/3 System consists of a document
header and line items. Information in the document header
applies to all the line items. Specifications made in line
items apply to the specified G/L account or
customer/vendor account.
Fields used in document entry are determined based on
the configuration of the field status definitions for G/L
accounts and posting keys.
Documents that are entered incorrectly can be corrected
or reversed.

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Chapter Document Control

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valid posting periods
Valid Posting Periods
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Fiscal year YYYY
05 05 06 06
possible closing
periods
13 13
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
05 05 06 06 07 07 08 08 09 09 10 10 11 11 12 12
01 02 03 04 05 06 07 08 09 10 11 12 13 13 14 15 16
05 05

The posting date which you specify when entering documents determines the posting period to which
the postings are made. The system date is generally entered as the default value in the posting date
field. The posting period is derived from the month specification and is entered in the posting period
field.

Note: The system automatically determines the posting period which differs from the
calendar year in the case of a non-calendar fiscal year.

You can make the following settings in the system:
number of normal posting periods (01-16)
number of special periods (maximum difference up to 16)
which posting periods are open (can be posted to).

You can define as many posting periods which can be posted to as you like within the possible limit
you have set. You can keep all posting periods open throughout the fiscal year or else you can restrict
the open periods in each case to the current posting period only.

Recommendation: In order to be able to compare internal and external reports, it is recommended that
you close posting periods which have ended so that they are blocked for document
entry.

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YYYY - 1 YYYY - 1
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Period 2 - Period 1 -
for acct type A for acct type A
for acct type D for acct type D
for acct type K for acct type K
for acct type S for acct type S

You can break down the periods which can be posted to by differentiating according to account type
and accounts. The account type keys A, D, K, S stand for fixed assets accounts, customer accounts,
vendor accounts and G/L accounts.

Note: The plus sign is necessary as the minimum entry for an undifferentiated posting
period setting.

The specifications for the open posting periods can differ depending on the situation.

Example: The account type D (customers) is closed for month 05, i.e. you cannot enter any
outgoing invoices in this posting period. The account type K (vendors)
allows postings for the months 05 and 06, i.e. you may still enter incoming invoices.

In addition, you can specify different account intervals within the account type.

The account numbers for customers, vendors and fixed assets are the general ledger accounts stored
in the master record.

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2) Posting periods: define periods
1) Define posting period variant
optional:
maintain an
authorization
group
1. 2.
0001
0002
all company codes in the enterprise
A/D/K = prev.month closed,
S = posting permitted
0001 S From acct To acct 5/96 6/96 13/95 13/95 AuGp

The settings stored in customizing are valid for one variant. You can use the specifications in several
company codes by setting one or more variants for each posting period.

Note: You can define several variants corresponding to your different requirements.
One aspect can be the cross-group closing date for postings from one period. By
grouping the same account type and posting period specifications into one variant, the amount
of work involved when updating the respective periods is reduced.

The authorization group field is available as an option. You maintain this field if you want to have
further posting restrictions for particular employee groups.

Example: You allocate the employees working in Accounts Receivable to one
authorization group and employees from G/L accounting to a different authorization group.
By making an additional authorization group specification, you cannot, for example, post any
more outgoing invoices yet the monthly closing entries can still be made.

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2. Posting periods: defining time periods
3. Allocate variant to company codes
1. 2.
1000 Ides Inc., Wilmington 0001
2000 Ides UK, London 0001

the posting is made.

beginning and end of your fiscal year
number of special periods (rest up to 16)
length of posting periods

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Document Type
XXXXX XXXXXXXXX
C
u
s
t
o
m
e
r
s
C
u
s
t
o
m
e
r
s
Outgoing
invoice
Incoming
invoice
Bank
DR KR KR SB SB
Account type Account type
Document no. Document no.
D, S D, S
1800000025 1800000025

The document type is used:
for differentiating the business transactions,
for controlling which account type can be posted to
(customer, vendor, G/L account, fixed asset),
for controlling the document number assignment,
as a search criterion for document information.

Some document types are proposed by the system for the individual screen templates, whereas in other
templates you are requested to enter a document type.

You can add your own definitions to the document types defined in the standard system.

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Document Types
Doc.type Name Number range Accnt types
AA Asset Acctng 01 ADKMS
AF Depreciation pstgs 03 AS
DR Customer invoice 18 ADMS
KR Vendor invoice 19 AKMS
SA G/L accounts (gen.) 20 DKS
SB G/L accounts (banks) 20 DKS

You specify a number range for each document type.

You can also allocate a number range to several document types.

Example: All G/L account document types (SA, SB, SK, WI) are given the number range 20.

Note: If you use the component in this way, the FI clearing invoices which are created in
connection with billing documents are automatically transferred from SD to FI. The
billing document number is also entered into the reference number field. The billing
document number and the FI document number tend not be identical since the billing document
numbers are assigned at client level and the FI document numbers at company code
level. The document number assignment in FI is internal.

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01 1996 0000100001 0000199999 0000100047
02 1999 0000200000 0000399999 X
STOP!
No. Year From number To number Current no. Extern. Extern.
X1
X2
reserved for
sample documents and
recurring entry documents

You can define as many document number ranges (01 to 99 and AA to ZZ) as you wish.

Recommendation: You first of all establish how the documents are to be stored and organized. Only
then should you determine how many number ranges you require.

Allocate the number intervals according to your volume of documents and include a safety buffer.

Determine whether the numbers are to be assigned internally by the system or externally. The last
number assigned is automatically increased by one in the case of internal document number
assignment. You can see the current document number in the number status field.

You can enter the document number when posting a document in the case of external number
assignment. In this case, the system cannot check whether any numbers in the range have been missed
out.

If you integrate several R/3 modules, then the document number in the feeder module (MM, SD) is
assigned using internal number assignment. These documents are then transferred to the recipient
module (FI) and are also given an FI document number which comes from a document number range
flagged as internal.

SAP AG
No. Year From number To number Currrent no. Extern.
copy to fiscal
year(s)
01 1996 0000100001 0000199999 0000100047
02 1999 0000200000 0000399999 X
copy to comp.
code(s)

You can redetermine the document number ranges for each fiscal year. If the number ranges are to be
valid for several fiscal years, then enter the numbers 9999 in the year field.

Define the document number ranges for each individual company code. If you use document number
assignment with the same contents in several company codes, you can copy the data into another
company code using the utilities function.

Recommendation: Organize the way your documents are stored in the same way for all company
codes and use the copy option.

If the document number ranges are defined dependent on fiscal year, copy the existing number
intervals before the beginning of the fiscal year into the entry for the new year.

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Posting Keys
Supp., opt., req.ent., disp.
01 Invoice Debit Customer
11 Credit memo Credit Customer
31 Invoice Credit Vendor
40 Debit posting Debit G/L acct
50 Credit posting Credit G/L acct
P.Key Meaning Debit/credit Account type Field status Field status
A, D, K, M, S A, D, K, M, S

The posting key controls the document entry. For the line item, it determines:
whether the item is posted to the debit or credit side of the account,
whether it is a subledger posting (customer or vendor), a G/L account posting, a material account
posting or an asset posting,
whether particular fields are hidden or displayed or are required fields or optional fields.

Recommendation: Use the standard settings.

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Default Values For Fiscal Year And Value Date
CoCd CoCd Company name City Default FY
1000 IDES Inc. 1000 IDES Inc. New York New York X X
2000 IDES UK 2000 IDES UK London London X X
2100 IDES Ger. 2100 IDES Ger. Frankfurt Frankfurt
CC CC Company name Company name City Default value date
2100 IDES Ger. 2100 IDES Ger. Frankfurt Frankfurt X X

If you have entered year-dependent document number intervals within document number assignment
customizing, this entry makes your input easier for
the document display function and
the document change function.

Select this option for company codes which use a year-dependent document number range.

The Propose value date option is available whatever your document number range characteristics
are.

You can use the value date field for additional information on the line item.
Note: You must set the value date as a required field if you use the Cash Management,
Cash Budget Management and Commitment Accounting modules.

The CPU date (current date of the computer) is proposed as the value date.

SAP AG
With the specifications you make for the posting periods,
you block or allow posting to a certain posting month. If
you only release the current month for postings, you must
change this entry every month.
The optional and required entry fields are controlled
differently for each different business transaction. You
can usually copy the standard configuration settings for
this.
You define the document number ranges and then
allocate them to the document types. A number range can
be allocated to more than one document type.

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Chapter Document Control

SAP AG
valid posting periods
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Fiscal year YYYY
05 05 06 06
possible closing
periods
13 13
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
05 05 06 06 07 07 08 08 09 09 10 10 11 11 12 12
01 02 03 04 05 06 07 08 09 10 11 12 13 13 14 15 16
05 05

the postings are made. The system date is generally entered as the default value in the posting date
field. The posting period is derived from the month specification and is entered in the posting period
field.

Note: The system automatically determines the posting period which differs from the
calendar year in the case of a non-calendar fiscal year.

number of special periods (maximum difference up to 16)

You can define as many posting periods which can be posted to as you like within the possible limit
you have set. You can keep all posting periods open throughout the fiscal year or else you can restrict
the open periods in each case to the current posting period only.

Recommendation: In order to be able to compare internal and external reports, it is recommended that
you close posting periods which have ended so that they are blocked for document
entry.

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YYYY - 1 YYYY - 1
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Period 2 - Period 1 -
for acct type A for acct type A
for acct type D for acct type D
for acct type K for acct type K
for acct type S for acct type S

You can break down the periods which can be posted to by differentiating according to account type
and accounts. The account type keys A, D, K, S stand for fixed assets accounts, customer accounts,
vendor accounts and G/L accounts.

Note: The plus sign is necessary as the minimum entry for an undifferentiated posting
period setting.

The specifications for the open posting periods can differ depending on the situation.

Example: The account type D (customers) is closed for month 05, i.e. you cannot enter any
outgoing invoices in this posting period. The account type K (vendors)
allows postings for the months 05 and 06, i.e. you may still enter incoming invoices.

In addition, you can specify different account intervals within the account type.

The account numbers for customers, vendors and fixed assets are the general ledger accounts stored
in the master record.

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2) Posting periods: define periods
1) Define posting period variant
optional:
maintain an
authorization
group
1. 2.
0001
0002
all company codes in the enterprise
A/D/K = prev.month closed,
S = posting permitted

The settings stored in customizing are valid for one variant. You can use the specifications in several
company codes by setting one or more variants for each posting period.

Note: You can define several variants corresponding to your different requirements.
One aspect can be the cross-group closing date for postings from one period. By
grouping the same account type and posting period specifications into one variant, the amount
of work involved when updating the respective periods is reduced.

The authorization group field is available as an option. You maintain this field if you want to have
further posting restrictions for particular employee groups.

Example: You allocate the employees working in Accounts Receivable to one
authorization group and employees from G/L accounting to a different authorization group.
By making an additional authorization group specification, you cannot, for example, post any
more outgoing invoices yet the monthly closing entries can still be made.

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2. Posting periods: defining time periods
3. Allocate variant to company codes
1. 2.
1000 Ides Inc., Wilmington 0001
2000 Ides UK, London 0001

the posting is made.

beginning and end of your fiscal year
number of special periods (rest up to 16)
length of posting periods

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Document Type
XXXXX XXXXXXXXX
C
u
s
t
o
m
e
r
s
C
u
s
t
o
m
e
r
s
Outgoing
invoice
Incoming
invoice
Bank
DR KR KR SB SB
Account type Account type
D, S D, S
1800000025 1800000025

The document type is used:
for differentiating the business transactions,
for controlling which account type can be posted to
(customer, vendor, G/L account, fixed asset),
for controlling the document number assignment,
as a search criterion for document information.

Some document types are proposed by the system for the individual screen templates, whereas in other
templates you are requested to enter a document type.

You can add your own definitions to the document types defined in the standard system.

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Document Types
Doc.type Name Number range Accnt types
AA Asset Acctng 01 ADKMS
AF Depreciation pstgs 03 AS
DR Customer invoice 18 ADMS
KR Vendor invoice 19 AKMS
SA G/L accounts (gen.) 20 DKS
SB G/L accounts (banks) 20 DKS

You specify a number range for each document type.

You can also allocate a number range to several document types.

Example: All G/L account document types (SA, SB, SK, WI) are given the number range 20.

Note: If you use the component in this way, the FI clearing invoices which are created in
connection with billing documents are automatically transferred from SD to FI. The
billing document number is also entered into the reference number field. The billing
document number and the FI document number tend not be identical since the billing document
numbers are assigned at client level and the FI document numbers at company code
level. The document number assignment in FI is internal.

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01 1996 0000100001 0000199999 0000100047
02 1999 0000200000 0000399999 X
STOP!
No. Year From number To number Current no. Extern. Extern.
X1
X2
reserved for
sample documents and
recurring entry documents

You can define as many document number ranges (01 to 99 and AA to ZZ) as you wish.

Recommendation: You first of all establish how the documents are to be stored and organized. Only
then should you determine how many number ranges you require.

Allocate the number intervals according to your volume of documents and include a safety buffer.

Determine whether the numbers are to be assigned internally by the system or externally. The last
number assigned is automatically increased by one in the case of internal document number
assignment. You can see the current document number in the number status field.

You can enter the document number when posting a document in the case of external number
assignment. In this case, the system cannot check whether any numbers in the range have been missed
out.

If you integrate several R/3 modules, then the document number in the feeder module (MM, SD) is
assigned using internal number assignment. These documents are then transferred to the recipient
module (FI) and are also given an FI document number which comes from a document number range
flagged as internal.

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No. Year From number To number Currrent no. Extern.
copy to fiscal
year(s)
01 1996 0000100001 0000199999 0000100047
02 1999 0000200000 0000399999 X
copy to comp.
code(s)

You can redetermine the document number ranges for each fiscal year. If the number ranges are to be
valid for several fiscal years, then enter the numbers 9999 in the year field.

Define the document number ranges for each individual company code. If you use document number
assignment with the same contents in several company codes, you can copy the data into another
company code using the utilities function.

Recommendation: Organize the way your documents are stored in the same way for all company
codes and use the copy option.

If the document number ranges are defined dependent on fiscal year, copy the existing number
intervals before the beginning of the fiscal year into the entry for the new year.

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Posting Keys
01 Invoice Debit Customer
11 Credit memo Credit Customer
31 Invoice Credit Vendor
40 Debit posting Debit G/L acct
50 Credit posting Credit G/L acct
P.Key Meaning Debit/credit Account type Field status Field status
A, D, K, M, S A, D, K, M, S

The posting key controls the document entry. For the line item, it determines:
whether the item is posted to the debit or credit side of the account,
whether it is a subledger posting (customer or vendor), a G/L account posting, a material account
posting or an asset posting,
whether particular fields are hidden or displayed or are required fields or optional fields.

Recommendation: Use the standard settings.

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Default Values For Fiscal Year And Value Date
CoCd CoCd Company name City Default FY
2100 IDES Ger. 2100 IDES Ger. Frankfurt Frankfurt
CC CC Company name Company name City Default value date
2100 IDES Ger. 2100 IDES Ger. Frankfurt Frankfurt X X

If you have entered year-dependent document number intervals within document number assignment
customizing, this entry makes your input easier for
the document display function and
the document change function.

Select this option for company codes which use a year-dependent document number range.

The Propose value date option is available whatever your document number range characteristics
are.

You can use the value date field for additional information on the line item.
Note: You must set the value date as a required field if you use the Cash Management,
Cash Budget Management and Commitment Accounting modules.

The CPU date (current date of the computer) is proposed as the value date.

SAP AG
With the specifications you make for the posting periods,
you block or allow posting to a certain posting month. If
you only release the current month for postings, you must
change this entry every month.
The optional and required entry fields are controlled
differently for each different business transaction. You
can usually copy the standard configuration settings for
this.
You define the document number ranges and then
allocate them to the document types. A number range can
be allocated to more than one document type.

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Chapter Postings Transactions

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Characteristics
Tax type A Output tax
Check ind. X
EC indicator
Target tax code
Tax accounts
Per
account key for
each account
One account per
tax code
Rules Rules
Setting Up New Tax Codes
A0
A7
V0
V1
V9
A6 A6
Tax category Account Tax percentage Level From level Cond.type
key
Base amount 100 0 BASB
Output tax MWS 16.000 110 100 MWAS
Input tax VST 120 100 MWVS
Travel exp.(% sep.) VST 130 100 MWRK
Non-ded.input tax NAV 140 100 MWVN
T
a
x

c
o
d
e
s
A2
A1

The SAP system contains a tax code for every applicable tax rate.
When you maintain a tax code, you must define the rate and other attributes as required. You only
have to enter tax accounts if the rules you are using specify Account per tax code for the account
key of any of the accounts involved.

You can define any new tax codes you set-up as being country-dependent, using the calculation
procedure to save this specification.

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Tax Accounts
Description Transaction Acct determ.
Outgoing acquisition tax ESA X
Incoming acquisition tax ESE X
Output tax MWS X
Input tax VST X
Chart of accounts INT
Transaction VST
G/L account G/L account
154000 154000

In the R/3 system postings to tax accounts are carried out automatically. This eliminates the
possibility of tax amounts being entered incorrectly.

Enter the appropriate G/L accounts from your chart of accounts for the transactions you use.

Note The posting keys show whether the G/L account posting should be on the debit or
credit side. You do not need to change the specifications made for the rules.

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Realized exch.rate diff. Realized exch.rate diff.
230020 230020
230020 230020
Act determ.for open item ex.rate diffs
Gen.ledger Currency Curr. type
140000
160000 USD 10
160000 DEM 10
230010 230010
230010 230010
Expense 230000
Revenue 280000

In the R/3 system postings to the exchange rate difference accounts are usually made automatically.
This eliminates the possibility of incorrect entries.

You can allocate exchange rate difference accounts to as many G/L accounts that receive foreign
currency open item postings as you like.

You can make a global allocation for all currencies and currency types to a single G/L account. You
can also specify a separate G/L account for automatic postings for every individual foreign currency.
You can further differentiate by currency type (document currency, local currency etc.).

Note In this entry screen you can also define the accounts for valuating open items for
closing purposes.

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Clearing Between Company Codes
2100
1000
Posted in 1000, Posted in 1000,
cleared against 2100 cleared against 2100
Receivable Receivable Payable Payable
194002 194002 194002 194002
Posted in 2100 , Posted in 2100 ,
cleared against 1000 cleared against 1000
Receivable Receivable Payable Payable
194001 194001 194001 194001

You can specify both G/L accounts and customer and vendor accounts for clearing between company
codes.

Note The company codes in which you will make cross-company code postings must
belong to the same taxable entity.

For each possible pair of company codes where cross-company code clearing will take place you must
enter the reverse combination:

Example CoCd 1000 with CoCd 2000 and CoCd 2000 with CoCd 1000
CoCd 2000 with CoCd 3000 and CoCd 3000 with CoCd 2000
CoCd 3000 with CoCd 1000 and CoCd 1000 with CoCd 3000

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AM AM
Asset Asset
Acctg Acctg
CO CO
Controlling Controlling
HR
Human
Resources
SD
Sales
FI FI
Financial Financial
Acctg Acctg
You can make the entries for the automatic G/L You can make the entries for the automatic G/L
account postings either in the modules named account postings either in the modules named
above above
or or
centrally in the general ledger configuration menu centrally in the general ledger configuration menu
Determination of
revenue accounts
Expense accounts
Current assets/liab.accts
Automatic
postings
Automatic
postings

Via the menu path Bus.transactions -> General ledger in the Configuration menu you can enter G/L
accounts that can be used for all automatic postings in the following sub-menus:
Asset management
Overhead cost management
Personnel administration
Sales and distribution

Note You can also make these entries in any module that is integrated with Financial
Accounting.

Recommendation: Decide on a single person/group of people within your overall project who will
make
these settings and any changes to them.

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Terms Of Payment
User-defined explanation: User-defined explanation:
14 days 3%, 30 days 2 %, 45 days net 14 days 3%, 30 days 2 %, 45 days net
Default baseline date Default baseline date
No default No default
Document date Document date
Posting date Posting date
Entry date Entry date
Invoice date
03/25/1996
Receipt /
posting date
03/29/96
Document entered on
04/01/96
ZB01 ZB01
Account type Account type Default Default
Customer Customer Pymt block key Pymt block key
Vendor Vendor Payment method Payment method
X
X

The payment terms are defined as a four-character, alphanumeric user-defined key.

You can supplement the automatically-generated description of the payment terms by
creating your own description ( which is printed along with the correspondence),
permitting the payment terms for vendors only or for customers only or for both
defining a fixed payment date in the month after the invoice is issued (e.g. payment by the 15th of
the next month),
entering a default reason for the payment block (this is automatically entered into the documents as
a value that can be overwritten, e.g. payment block due to debit memo/direct debit with incoming
invoices),
allocate a default value for the payment method (e.g. bank direct debit for outgoing invoices),
specify a value as a basis for calculating the payment period
indicate whether the payment term is for holdback/retainage.

Note: The payment terms keys are managed separately for accounting and
sales/distribution. You should use the same keys in both modules and specify how the information
flow between purchasing and financial accounting or between sales/distribution and
financial accounting can be guaranteed in the event of changes and new
entries.

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Automatic Postings
Bank charges
Cash discount received/paid
Over/under payment
Down payment
SGL
SGL
Special G/L transactions:
Bills of exchange
Check/bill of exchange
Down payment request
Guarantees
Security deposit
Individual value adjustment
Customer Customer

You can define G/L accounts to receive automatic postings for a wide range of accounts receivable
and accounts payable transactions.

Depending on the transaction involved, specify one or more G/L accounts from the chart of accounts
you are using. Where necessary enter a G/L account for every reconciliation account.

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Work Lists For Several Company Codes And/Or Accounts
Value
Account 1
Account 2
Account 3
:
Value
CoCd 1
CoCd 2
CoCd 3
:
Work List
Account
CoCd
Account
Company code
Line Item Display

You can switch on, switch off, display and maintain work lists via the Edit function in the line item
display screen.

A work list is a name (up to 10 characters long) for a combination of accounts and/or company codes
that have been grouped together for processing.

You can define a term for the following objects in the Work list field:
BUKRS (company code)
KUNNR (customer)
LIFNR (vendor)
SAKNR (G/L account)

You specify values for the work lists that you have defined. Line items are then displayed for the
accounts and/or company codes that you allocated to that work list.

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Line Item Display - Automatic Work Lists
Rules for name assignment
Object
Automatic generation of work lists for customers and vendors
KUNNR Customers
:
Prefix
Offset
Display length
Group key: 1234567890
(Customer master record 1)
First account posted to after
the rules were defined.
Work list:
KS - 1234567
KS -
7

Work list GK - 1234567 will display all items posted to customer accounts whose master records
contain an entry beginning with the digits 1234567 in the group key field.

You can only create automatic work processes for customer and vendor accounts based on the group
key and alternative payer fields.

Prefix and display length: max. 10-character

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Entering Recurring Postings
Execution of Recurring Entries
0001
either
or
Description Description Run Run
schedule schedule
0001 Every Wednesday
1) Define the run schedule
: :
0001 0001 Run schedule Run schedule
Run date Run date
12/06/1995
2) Dates acc.to run schedule
: :
12/13/1995
12/20/1995
: :
Configuration Configuration
First run on
Last run on
Interval in months
Run date
Run schedule
:

A recurring entry document is an aid to creating actual documents that must be created at regular
intervals. Recurring entry documents are not therefore actual accounting documents and do not alter
any transaction figures in accounting.

For each recurring document, you can enter either a periodic interval (interval in months, plus a run
date) or a run schedule.

You define your own run schedules in the configuration menu. Then you maintain the dates for them.
These dates must not be periods.

When you are creating a recurring entry original document, you can define a date in the field First
run on that comes before the first date in the run schedule, thus creating an extra actual document.

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Program Flow
Recurring entry data
First run on
Last run on
Next run on
Run interval
Run date
Run plan
Deletion indicator
Number of runs
10/20/1995
Enter recurring entries Recurring entry program starts
Settlement period Settlement period
12/01/1995 12/31/1995 to to
: :
Recurring entry
document update:
Next run on:
Accounting
document
Batch input session Batch input session
process process
0001
12/27/1995

You can use the recurring entry program in accounts receivable and payable and even for G/L account
postings.

In this way you can make settings that recur at more or less regular intervals (receivables, payables,
accruals/deferrals)

No more than a single actual document is generated for each program run and recurring entry
document, provided that the next run date falls within the settlement period.

When the batch input session is processed, the accounting document is created and the recurring entry
document is updated for the next program run.

Caution
You must always start the recurring entry program before running the batch
input session.

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Summary: Postings Transactions
A large amount of postings are generated automatically.
You define the specifications for posting transactions in
the configuration menu for each of the functions.
All postings to the tax accounts are automatic. This
ensures that tax amounts are entered correctly.
The configuration settings for each set of payment terms
determine the periods for the payment conditions. You
can supplement the automatically generated description
for each of these with your own text.

SAP AG
Chapter Accounts and Line Items

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Account: Transaction Figures
General data
Company code
data
Master record Master record
posted posted
Transaction figures
Period D / C
01
02 3000
:
12
.
.
16
CCdata: 01.02.YYYY
Account: BANK
Debit posting / 40
Amount 3.000
Add
O
p
e
n

Transaction figures are the summary representation of our accounting according to a fixed structure.
- Account number
- Company code
- Fiscal year
- Business area (G/L accounts only)
- Currency (G/L accounts only)
- Posting period
- Debit
- Credit

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Currency overview
LC 3.000
FC 1.800
Line items
Item 1
Item n

Cumulative
balance
300-
1.800
Account: US dollar bank account FC
Balance Display for G/L Accounts

Account: US dollar bank account LC
Period Debit Credit Period Cumulative
balance balance
1
2
3
.
.
13
.
16
4.800
500
1.300
500-
3.500
500-
3.000
Work list: ? Company code: ? Year: ? Currency: ?
Account: ?

The balances for debit, credit, period balance and cumulative balance are shown per period in the
balance display.

You can go into the line items of an account from this display

For foreign currency accounts, the balance is displayed both in the foreign currency and in the
company code currency.

SAP AG
Balance Display for Customers and Vendors

Period Debit Credit Period Cumulative
balance balance

1
2
3
.
.
13
.
16
Account: ? Company code: ? Year: ?
Line items
Item 1
Item n
Special G/L
transaction
Down payment _____
Bill of exchange _____
* _____

In addition to general ledger account balances, you can also choose to display the balances for special
general ledger transactions when you are in the sub-ledger accounts.

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Line item display
Account 1
Document 1 Item 2 50,00
Account Line Items
General
data
Company
code
data
Transaction
figures
Account
Account 1 Document 1 Item2
Document 4 Item 1 ...
Document 5 Item 1 ...
Account 2 Document 2 Item1
Document 2 Item 2...
. . .
. . .
. . .
Document 1
Item 1 ...
Item 2 ...
Item 3 ...
Document 2
Item 1 ...
Item 2 ...
.
.
.

You can go into a document from the line item display of an account.

You can total, sort, and select the line item display according to different criteria.

For example, an accounting clerk could also find a document number using the search function.

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Master Record Control

Master Record In company code In company code
Account control ------------------------------------------------------------
Currency ______________________ DEM Deutsche Mark
Exchange rate difference key________ ___
Tax category ________________ ___
Reconciliation account for account type ______ ___
Account management ---------------------------------------------------------
Open item management _______ X
Line item display ____________ X
Sort key ________________ 005 Amount
Document entry control --------------------------------------------
Field status group _______________ GR02 Bank accounts
Automatic posting only ______ ___
Supplement automatic posting ___ ___

Open Item Management X
If you need open item management for a balance sheet account, indicate the field with "X".
Line item display X
If you want to have the saved documents from a general ledger account at your displosal in dialog,
indicate the field with "X".
Sort key 005
If you have decided on line item display for an account, you can specify the sort sequence in the
criteria you enter while you are in the display. You also have the option to re-sort.

SAP AG
Summary:
Accounts and Line Items
The account display gives you an overview of all postings
to a selected account.
From the balance display, you can go to the line item
display and display all documents (debit, credit, debit and
credit).
Amounts are displayed in the local currency (LC) or in the
foreign currency (FC) in which they were posted.

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Unit Foreign Currencies

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Posting in Foreign Currency

Document header Document header
Currency/Rate USD 2.0
Amount 1,000
Translation date
05.31.YYYY

Document lines Document lines
Amount FC: 1,000 USD

Exchange rate Exchange rate
04.30.YYYY USD DEM 1.8
05.31.YYYY USD DEM 2.0
Amount LC: 2,000 DEM
1.)
2.)

When you post in foreign currency, you overwrite the default local currency key in the document
header with the corresponding foreign currency key.
Generally, the exchange rate comes automatically from the exchange rate table. The system sets the
translation date as the posting date. The translation date determines which rate is taken from the
exchange rate table.
You only need to enter the amount in one currency. The system automatically performs the translation
to another currency.
You can specify an exchange rate in the document header yourself, or you can enter the local and
foreign currency amounts in the posting lines and thus override the exchange rate table.

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The FI View
Two additional currencies per company code
Automatic calculation of additional currencies
Display additional currencies in document
Select exchange rate type, base currency, and translation
date type
Valuation differences may be posted separately
FI FI
document document
Transaction Transaction
currency currency
Local Local
currency currency
Additional Additional
currency 1 currency 1
Additional Additional
currency 2 currency 2

SAP AG
Target Group
Organizations that do internal and external reporting in
one or two additional currencies
Organizations in countries with high inflation rates
Multinational corporate groups

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Options for Additional Currencies(FI)
Group currency
Global company currency
Hard currency
Index-based currency

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Two Additional Currencies in FI
Example: Currency types in a multinational corporate group:
German corp. group
Group currency
DEM
US Germany Mexico
Transaction currency
Local currency
Group currency
Hard currency
XXX XXX XXX
USD DEM MXP
DEM DEM DEM
USD

As of Release 2.2a, you can carry two additional currencies per company code in FI (only for test
systems). As of 3.0, you can work with additional currencies in production systems. The following
currency types are available:
Group currency
Hard currency
Index-based currency
Global company currency
You do not have to enter amounts explicitly in additional currencies; the system calculates the
amounts with an exchange rate table. You can define either the document currency or the local
currency as the reference currency.
Exhange rate differences will then appear not only in local currency, but also in the additional
currencies of an organization.

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Example: An American corporate group owns:
1. A company in Holland with a branch in Germany
2. A company in England with a branch in France
FI
Paket
FI using LC
FI
Transact. Transact. Local Local CoCode CoCode Group Group
Company 1 Company 1 currency currency currency currency currency currency currency currency
Germany XXX DEM NLG USD
Transact. Transact. Local Local CoCode CoCode Group Group
Company 2 Company 2 currency currency currency currency currency currency currency currency
France XXX FRF GBP USD
LC Country CoCode Group
currency currency
Gesell.1
Gesell.2
Holland NLG USD
England GBP USD

Description of above example:
For technical reasons, (VAT reporting), branches have to be represented as company codes in the SAP
system even though they are not legally self-contained organizations.
There is no consolidation between the branch level and the level of legal self-sufficiency. In order to
offset, you have to go through the selection of posting methods and chart of accounts. The LC system
begins at the level of legal self-sufficiency.
The companies in Holland and England are not shown on this slide.

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Also See Exchange Rates
As of 3.0, currency translation may be performed
using a reference currency.
The translation would then be as follows: currency A
reference currency currency B.
If you choose this option, the exchange rate only has
to be maintained by the foreign currency in the
reference currency.

For further information, please refer to the release notes for 3.0.

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Chapter Entry Tools and Special Features

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Entry Tools: Entry with Reference
Reference
Document no. ?
Document
13 000 00031
or Sample doc.
92 000 00044
Workflow control
O OO O Reverse posting
O OO O Enter G/L account lines
O OO O No default amounts
O OO O Display items
-
Document
13 000 00032

You can also use references to post.
There are two kinds of references:
- 'actual' documents or
- sample documents (sample documents are entered just like actual documents, only they
do not update the transaction figures).
Workflow control
X Create reverse posting
You create a document with opposite posting keys to the reference document.
X Enter G/L account lines
The G/L account item fast entry screen is displayed. You have the option to make changes in
the reference data.
X No default amounts
You see the reference document without any amounts.
X Display items
All items in the reference document are displayed in succession. You have the option of
posting a similar actual document.

SAP AG
Solutions for Recurring Postings
Document no. 087234098
R
e
f
e
r
e
n
c
e

d
o
c
u
m
e
n
t
PK Acct Amount
40 123000 5000
50 345560 2000
50 907902 3000
Posted document
CoCde: 0001 01.23.95
PK Account Amount
40 123000 5000
50 345560 2000
50 907902 3000
Sample document no. 255
S
a
m
p
l
e

d
o
c
u
m
e
n
t
PK Acct Amount
40 123000 5000
50 345560 2000
50 907902 3000
Hold/set data
Document header & item:
CoCde: 0001 01.23.95
PK Account Amount
40 123000 5000

Reference documents are posted documents that you can copy when posting a new document.
A sample document is a model document that can be copied to a document that is to be posted.
The Hold/set data function allows you to enter certain data with automatic settings while posting.
These functions each have different restrictions and differences.
Account assignment models, which support document entry, are an alternative to sample documents.

SAP AG
Posting with Account Assignment Model
Account assignment model Sample No. 9889 Sample No. 9889
PK Acct Amount
40 123000 5000
50 345560 2000
50 907902 3000
Posted document
Header: 01.23.1995 Company code: 0001 Header: 01.23.1995 Company code: 0001
PK Account Amount
40 123000 5000
50 345560 2000
50 907902 3000

Account assignment models are designed to accelerate the process of document entry. An account
assignment model may contain an unlimited number of line items and the posted amount.
Posting to an account assignment model does not have to be complete. For example, an account can be
contained in the model while the cost center and amount are left blank until the final posting, when the
account assignment model is used.
It is normally used for G/L account postings, and less often for postings to subledger accounts. You
can also call up this function from accounts receivable as well as accounts payable accounting.
The account assignment model consists of several G/L items (defined by the user) that are used in
postings which show a large number of account assignments and are used as models.
This function has the following options:
Maintain and display account assignment model.
Integration with document entry procedure.
Intercompany transactions with account assignment model.
Document entry in list format using screen variants that can be set individually.
Distribute a single amount to various line items using an equivalence number.

SAP AG
Sample Documents and Account Assignment Models
Acct. assign.
model
Sample
doc.
All fields may be changed
Copy existing document/model
Additional line items can be added
after creation
Delete existing items
No No Yes Yes
No No
Yes Yes
No No Yes Yes
No No Yes Yes

The account assignment model is much more flexible than the sample document.
It is also easier to change, copy, and add data to an account assignment model.
Maintaining an account assignment model is more systematic and allows you to administer several
account assignment models that are updated or changed.

SAP AG
Text in Line Items
--Item n
Text Text information Text information
* Plus text = expression of item text in correspondence, dunning notices, checks
--Item n+1
+ +
--Item m
++ ++
= =XXXX XXXX
Text repeated but not displayed in line item
Text repeated and displayed in line item
Standard text (XXXX) is entered in the line item

After the first entry of the required text in a line item, the text can be transferred to a text field in the
following items by entering + or ++.
Entering + effects the transfer of the text without a confirmation message, while entering ++ makes
the transfer with a confirmation message.
In G/L account fast entry as well as fast entry of incoming invoices and credit memos, item text cannot
be used as an entry field. You can transfer an already entered text using accounting items (Mark text
while copying G/L account entry).
By entering = xxxx, you can transfer a standard text ( xxxx : argument in table
s. Customizing ).

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Hold and Process Document

Document entry Document entry
Account 476000
Amount 100
Cost center
Post
Hold Hold Temporary document number 1
User XYZ
Processing Processing
User XYZ Account 476000
Temp. doc. number 1 Process Process Amount 100
Cost center 150895

You can hold a document under a temporary document number of your choosing.
You can process or post the document with this number.

SAP AG


Document header Document header
Company code 1000
Cross-CC no.- - - -
Document entry
Line 1
CC Account Amount
1000 Kreditor 110
Steuer 10 V1
Line 2
CC Account Amount
1000 476000 20 V1
Line 3
CC Account Amount
1100 476000 80 V1
Automatic posting lines

When you make cross-company code postings, enter only the company code in the individual
document lines. Before doing this, indicate Options: Cross-company code documents.
Clearing and value-added tax postings are created automatically by the system (see next page).
The company codes in question must have the same local currency.

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Cross-Company Code Clearing
Customizing for clearing Customizing for clearing
between company codes between company codes
Company code 1= Company code 1= 1000 1000
Company code 2= Company code 2= 1100 1100
For each combination of
company codes, definitions of
O Debit posting key
O Credit posting key
O Debit account
O Credit account
should be maintained for
Customizing receivables and
payables.
Posted to 1000
Cleared against 1100
Receivables Payables
Debit post. key Credit posting key
Debit account Credit account
Posted to 1100
Cleared against 1000
Debit post. key Credit posting key
Debit account Credit account

SAP AG
Cross-company code number
(automatically generated) 0100001420 0100001420 1000 1000 YY YY
Document number in
company code 1000
0100001420 1000
Leading
company code
0100000010
Document number in
company code 1100
1100
Following
company code

The transaction number may be
- generated by the SAP system (no entry in cross-company code number) or
- entered manually (max. 16 digits).
If the SAP system creates the transaction number, it contains
- the document number in the leading company code,
- the number of the leading company code,
- fiscal year (YY).

SAP AG
Invoice and Credit Memo Fast Entry
Default for the following documents Default for the following documents
Company code
Posting date
Document type
Posting period
Default data for the following documents Default data for the following documents
Currency
Document date

The defaults are valid for the following documents until they are deleted (menu option Delete) or
overwritten.
Default data appears in the following templates, where they can also be overwritten.

SAP AG
G/L Account Line Item Fast Entry
Enter document
header
Fast entry

PK Account Amount Tax VAT Cost center
40 476000 50 V1 15 150895
25 V1 250353
477000 25 V1 160447
50 100000 115

There is only one dialog step for fast entry of general ledger account line items.
A choice of templates (Customizing) will fulfill the various conditions for a selection of additional
account assignments.

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Document Park
Parking
Park Change
Post
Tracing
Release
Release
Payment
release

With document parking, account assignments do not have to be complete for you to enter data for
customers, G/L accounts, and fixed assets.
Parking, park, change, and post are all supported functions.
Document tracing and release will be possible in a later release status using Basis workflow
components.

SAP AG
Parking
Item 1
Item 2
Item n Fast entry
Header
Park
Required fields: Company code
Currency
Posting key
Account number
Existence check: : Business area
Cost center
:
No update of transaction figures
No balance review
Document does not have to be complete
Document number assignment like in
document entry

The process of document parking is similar to that of document entry.
Only an existence check is performed in addition to checking the required fields Company code,
Currency, Posting key, and Account number.
Field status definitions set to Required are interpreted as Can.
When a document is parked, a park document (own tables) and a BKPF record with the same
document number are created.
The transaction figures are not updated, but the document can be processed in the line items.

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Change document Change document
Document date Document date
Posting date Posting date
Reference Reference
: :
Changing a Parked Document
Change header Change header
Overview
Doc. type Doc. type
Period Period
Header
Header
Item 1
:
Item n
All account All account
assignments assignments
can be changed can be changed
Currency Currency
Change document Change document

You can change all fields in the document header except Company code, Currency, and Document
number (with the exception of external number assignment).
You can change all fields in the line items. Accounting rules for changing documents do not apply.
You can delete a parked document. Note that the document number cannot be reused. A BKPF entry
remains so that the number is blocked. Change documents also remain.

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Posting
Posting Parked Documents
You can post parked documents individually or from a list
selection.
All account assignments are checked for correctness. Most
importantly, the balance must be 0.
Error messages are output in a list. From this list, you can
correct incorrect documents.
Once posting has been successfully completed, the parked
document is deleted and an accounting document is
generated. Transaction figures are also updated.
All change documents are kept.

There is a new Activity 77 park for the authorization objects that protect documents.

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Document Data
- Document header (VBKPF)
- Customers (VBSEGD)
- Vendors (VBSEGK)
- G/L accounts(VBSEGS)
- Fixed assets (VBSEGA)
- Taxes (VBSET)
- One-time accounts (VBSEC)

Data for documents (posted, not parked) is stored in BKPF and BSEG in the SAP system. Separate
index files (such as BSIK) are created for each account type.
Data is stored in different tables for different account types (see above) for parked documents.

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Park (1)
- Incomplete documents
- No update except for
Cash Management
- Only a few fields necessary
- Existence check (for tax codes,
for example)
- Gradual completion optional
Paket

You can park, constantly update, and post incomplete documents. Data from the parked document
remains available in the system.
After you have entered document header and line item data, and the document has been parked, data is
stored in files. A document number is assigned like in document entry. Neither transaction figures,
asset values, control totals, nor any other data is updated (except for Cash Management data) and no
automatic postings are created. Normally, a balance check is not performed, but you can perform one.
You can check whether data to be parked already exists in the system. Some fields, such as Posting
key and Account number, are required entries.

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Park (2)
- Closing check (optional)
- Document overview and
fast input variants
- Cross-company code
- Separate activity (77)
for authorization
- Parameter transactions
Paket

You can check to see if a document is complete with the COMPLETE function. It checks each line
item for the necessary fields as well as whether the document shows a balance of 0.
You can define fast entry and document overview variants in Customizing.
You can enter cross-company code transactions. Only a parked document in the initial company code
is generated. Several documents are created through posting. You cannot enter a cross-company code
number for cross-company code transactions.
A new activity (77) has been defined for authorization objects F_BKPF_BLA, F_BKPF_BUK,
F_BKPF_GSB, F_BKPF_KOA. This new activity allows you to differentiate between users who may
park a document and those who can post a document.
Parameter transactions for setting default values have been defined. This allows you to set defaults in
Customizing for the posting key and document type in document parking transactions.

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Park (3)
Taxes
- Customer item
- Tax screen
- Automatic
- No tax item
Paket

You can enter tax data as you do in transaction FB01.
The first option is to enter taxes in the customer line item.
The second option is to enter data in the tax screen.
The third option is to allow the system to calculate the taxes automatically.
In a parked document, no tax items are generated, but tax information is stored (VBSEGK, VBSET).
Taxes are reported and can be declared before posting takes place.

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Park (4)
- Change documents
- Delete documents
- Change number or posting date
- Open item list (optional)
- Transaction FB01
- Payment requests

If you change a parked document, the changes are logged. When displaying a parked document, you
can list the changes that were made. If a posted document was also a parked document, you can also
display the changes made to the parked documents.
You can delete parked documents, but the document number cannot be used for new documents.
You can also change the document number or posting date. When you do this, the old document is
deleted and a new one is created.
You can display parked documents in the open item list.
In transaction FB01, you also have the option of parking documents (new in Release 3.0).
It is possible to create payment requests for parked documents. Payment requests are regulated
automatically by the payment program. When the parked document is finally posted, the relation
between the payment request and the document remains.

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Posting
- Posting with CALL-TRANSACTION
- Content of document parking tables
is deleted
- Document number is not changed
- Cash Management data
is transferred

Parked documents are posted with CALL-TRANSACTION.
The content of the document parking tables is deleted.
The document number of the parked document is now the document number of the posted document.
Cash Management data is reversed for the parked document and recalculated for the document.

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Post
doc.
Overview of Release Approval Procedure
RELEASE
entire document
RELEASE
amount
REFUSE
REFUSE
RELEASE
RELEASE
COMPLETE
PARK

SAP will deliver a standard Workflow definition for the release procedure illustrated above. The next
several slides describe this standard release approval procedure for parked documents.
Because the introduction of a release approval procedure for parked documents is based on Workflow
tools (made available through SAP Business Workflow components), the user has the option of
modifying the release approval procedure delivered by SAP. Almost any imaginable scenario can be
illustrated with the release approval procedure available in the SAP system.
The functions PARK (a document) and COMPLETE (a parked document) start the appropriate release
approval procedure.
You can specify the minimum amount produced by the release approval procedure in Cutomizing. For
example, you can specify that every invoice over $1000 requires a further release approval by a
supervisor or manager, while invoices under $1000 do not need release approval.

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Summary:
Entry Tools and Special Features
Entry tools make document entry easier for
the user.

SAP AG
Chapter Optional Functionality

SAP AG
Cross-System Company Code
GL2000
GL1000
GL2200
GL2100
GL4000
GL3000
CoCd Name City Cross-sys co.cd.
1000 IDES Inc. Wilmingt. GL1000
2000 IDES UK London GL2000
2100 IDES Portugal Lisbon GL2100

If you want to continue processing and evaluating documents from external systems in your R/3
system, you should set up a unique allocation.

You can achieve unambiguity by assigning a six-character company code identification which you may
only assign once within the consolidated group.

Define the cross-system company codes in a first step and allocate this identification to the company
codes in all systems.

Note The local currency must be identical in the company codes whose documents you
want to continue processing. That is, the sending and the receiving company code work with
the same local currency.

SAP AG
_ _ Currency type Currency type
_ _ Exch.rate type Exch.rate type
_ _ Base currency Base currency
_
_ Type of translation date Type of translation date
1. Local currency
2. Local currency
3. Local currency
Additional Local Currency
Possible parameters: Possible parameters:

In addition to the currency defined for a company code, you can also define one or two extra currencies
for your internal and external reporting requirements.

For example, in countries with high inflation rates, you can run your company code in a country-
specific hard currency (in addition to the original currency defined for that company code).

In EU member states you can use the ECU as an index currency for carrying out evaluations.

The currency type describes what a currency is used for.

You use the exchange rate type to define whether you will carry out currency translation with the
average rate (M), bank buying or bank selling rate. You must define the daily rates for the exchange
rate type you specify.

If you use this option, you must make certain extra configuration settings governing account
determination for foreign currency valuation and the processing of exchange rate differences.

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Individual Editing Options
Document display Document display
Open items Open items
Line items Line items
Credit management Credit management
Payment advice notes Payment advice notes
FI Application FI Application
General ledger General ledger
standard settings standard settings
X Documents in local currency
Docs w/out sp.G/L transactions
X Text for G/L account entry

In the Financial Accounting module each user can define individual editing options for himself/herself.

Using these options you determine, for example, whether you only post in local currency when entering
documents. If you select this line, the currency and exchange rate fields are no longer displayed.

Other default options for the document entry templates are:
Documents without special G/L transactions
Non-cross-company code documents
Copy text for G/L account fast entry.

Put a cross at the beginning of the line which corresponds to the functionality you require. The field is
no longer displayed after saving the editing option. This way your screen template becomes clearer and
can be filled out more quickly.

You can change editing options at any time. These settings supplement the specifications made in
customizing for Controls by means of the field status groups and are dependent on the definitions made
there.

SAP AG
X Documents in local currency
Docs w/out sp.G/L transactions
X Text for G/L account entry
General Editing Options
Display formats Display formats
Line layout variants for
A1
Open items Open items
Credit management Credit management
Payment advice notes Payment advice notes
Entry screen templates
and line layout variant

Line layout variants already predefined by SAP are delivered with the editing options. These standard
variants determine at what point the selected field contents are displayed on the entry or display
screens.

You can change the sequence and column heading to meet your requirements by setting up new
variants in customizing.

Define the new key term for your line layout variants in a first step. Then in a second step allocate the
new variants in the Financial Accounting application to the different processing options.

You do not have to store your line layout variants in the options.
Recommendation: Do not begin setting up new line layout variants until you have extensive test
data for all business transactions available in your system. Define the line layout with the aim of
displaying information which you need to be able to work through the system
comfortably in the corresponding application area.

SAP AG
Maintaining The Line Layout
Line layout variant Line layout variant
A1
Allocation
Document number
Document type
Posting key
Posting date
Document date
Field list Field list
Invoice no./ Doc.no./ DT/ PK / PoDt/ Doc.date/ .....
Column heading

You set up new line layout variants within customizing. At any time you can create additional variants
or change existing ones as required.

When inserting fields into the line layout variants, you make selections from a list of the available field
descriptions.

In the column heading function you can see the selected fields, their sequence and the field length for
the respective line layout variant. You can create your own descriptions dependent on the field
description and the SAP column headings.
Example Field SAP abbreviation Alternative descriptions
Document type DT Type, doc.type
Account Account Customer, payer
Allocation number Allocation Invoice, billing document, outgoing
invoice
Recommendation: Use the option of working with company-specific descriptions so that it is easier to
get started with the R/3 system.
Note Changes in the line layout is only one way of changing editing forms. On the
next page you will find an overview relating to this.

SAP AG
Bearbeitungsformen definieren
Buchung
Beleg-Zeilenaufbau
Ausgleichsvorgnge
Zahlungsavise
Schnellerfassung
Vorerfassung
Externe Belege
Kontierungsmuster
Konto
Posten anzeigen
Zeilenaufbau
Sonderfelder
Feldauswahl
Vorschlagswerte
Summenvarianten
Sortiervarianten
Stammsatzinfos
Beleg
Anzeigen
Periodisches Arbeiten
Masch. Zahlen Zahlung
Masch. Zahlen Einz.Pos
Zahlungstrger
Kreditmanagement
Korrespondenz

You have the option of changing or extending the display formats listed above in order to meet your
requirements.

Maintaining the line layout for the line item display is only one of these options.

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Screen Modifications
Field selection
based on
company code
Master record
Create
Change
Display
Field selection
based on
activity
Field selection
based on
account group
Master record functions
Additional assignments
Postings
G/L account
field status
group
Posting key
field status
group
Posting functions

You can control document entry screens in the same manner as controlling the screens for master
record functions.

Note: posting transactions:

You can only control additional account assignments.

If you want to control screens based on accounts, choose the value in the G/L account field
status definition (example: value date in bank accounts = required entry).

If you want to control screens based on transaction, enter the field status group of the posting
key (example: segment text always in outstanding receivables (posting key 06) = required
entry).

SAP AG
Company code data Sales data General data
Activity category- Company code- Account group-
related related field related field
field selection selection selection
Example: Customer Master Record Example: Customer Master Record

ber zwei oder drei Feldauswahlen legen Sie fest, wie die Maske gestaltet ist.

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Link Rules - Master Records
?
Off Off
Display Display
Required Required
Optional Optional
Suppress Display Reqd Optn
Suppress
Display
Required
Optional
?
?
?
?
suppressed
displayed
displayed
displayed
Verknpfungs-
ergebnis
Field
is
Display activities Display activities
?
suppressed
displayed
displayed
displayed
Verknpfungs-
ergebnis
Field
is
Change activities Change activities

The pieces of field status information from the control tables are linked to one another in pairs.

Special rules are defined according to the above list for display and change activities.

SAP AG
Link Rules - Posting Transactions
Field status Field status
Off Reqd Optn
Allocation
Text
:
Value date
:
Off Reqd Optn
Allocation
Text
:
Value date
:
Link rules Link rules
Off Off Off
Off Reqd Reqd
Off Reqd Optn
Off
Reqd
Optn Off Reqd Optn
Value date Value date ? ?
Allocation Allocation _ _
Text _ _

The pieces of field status information from the posting key table and from the G/L account master
record are linked with one another.

The final characteristic of a screen field is produced from the result of the link rules.

SAP AG
AcTy From acct To acct Debit amnt Credit amt Curr.
S 100000 299999 123,456.78 123,456.78 USD
Control Totals
1.
2. Enter acct type, accounts, amounts and currency
3. Post documents
4.Compare results with control totals

If you work with control totals, firstly add together all the documents you intend to enter using your
calculator.

Select the control total function from the general ledger menu within Financial Accounting and enter
the account interval and the total determined for all the documents for an account type.

Recommendation: If the documents include both customer and vendor invoices, you can
group all the documents together into one line under the account type S (G/L accounts) using
a corresponding account interval.
Save the entry you have made and then enter all of your documents.

After entering all the documents, check the predefined control total with the total posted in the system.

If the system does not display any difference, delete your control total for the next entry.

SAP AG
Summary Optional Functionality
In addition to the functionality you have seen previously
in the course, the SAP system contains other useful user
options which make your daily work with the system
easier.
You can configure and use these functions from the very
beginning of your project. Alternatively, you can configure
them and enable your users to utilize them at any time
during the project or after the production startup.

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Chapter Reporting

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Periodic processing Periodic processing
Month-end closing Month-end closing
Create balance sheet Create balance sheet
Reporting
. . .
. . .
RFBILA00
Bal.sheet / P+L
RFBILA00
General reporting
Account
evaluations
Document
evaluations
Program
directory
by category
AAAA
BBBB
:
targeted call-up of
individual programs
from the application
menu
general program
directory by program
category

If a list
is created for more than one company code
is required to be divided into more than one list
is created with the option Execute and print
the company code specifications, name and city are taken from table TLSEP

SAP AG
Requesting A Report
- Periodic processing
- Reporting
- Balance lists
- System
- Services
- Reporting
List
Customer 1 - 999
Company code 0001
Op.items ky dt. DDMMYY
Balance -
Acts recvble balances in LC
VAR1 Fr./to Opt. Typ Protec. Variable
Customer S X N1
Comp.cd 0001 EQ S X
Op.itms ky dt. P N2
Balance S
VAR2
Customer 500/599 EQ S X
Comp.cd. 0001 EQ S
Op.itms ky dt. P N2
Balance S
. . .
Variant for RFDSLD00
Progr.: RFDSLD00
X Execute
. . . with variant VAR1
Variable
Name Type fr./to Option
N1 S 1 - 999 EQ
N2 P DDMMYYEQ
. . .

A report can be called up either directly from the application menu or using certain system functions.

To run a report you can either enter the necessary parameters manually or call up a variant (a set of
stored parameters).

You can protect the values entered in your variant ((P=parameters, S=select options) from being
overwritten.

You can use a variable to include a parameter from a data area not evaluated by the report in your
parameters for the report

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Defining A Job
Immediately
Date / time
By job. . .
hourly
daily
weekly
monthly
other intervals
Printer
Spool request
Spool control
Cover sheets
Print format
Start date Repetition period Print details
Defining background processing
Job name SALDENLISTE
Program RFSSLD00
Variant SEMI
User name instructor
Target machine

Before you prepare a program to run in the background, you must create a variant for this program.

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Summary Reporting
The SAP system contains a wide range of different
standard reports which you can use for your evaluations.
By specifying various parameters, you determine the
content and scope of the lists that are generated by each
report.
For reports that are run periodically you define a variant
containing certain parameters. This ensures that these
reports all have similar structure/contents.
You can generate any of the reports either immediately or
at a time you specify.

SAP AG
Chapter Reporting

SAP AG
Month-end closing Month-end closing
Create balance sheet Create balance sheet
Reporting
. . .
. . .
RFBILA00
Bal.sheet / P+L
RFBILA00
General reporting
Account
evaluations
Document
evaluations
Program
directory
by category
AAAA
BBBB
:
targeted call-up of
individual programs
from the application
menu
general program
directory by program
category

If a list
is created for more than one company code
is required to be divided into more than one list
is created with the option Execute and print
the company code specifications, name and city are taken from table TLSEP

SAP AG
Requesting A Report
- Periodic processing
- Reporting
- Balance lists
- System
- Services
- Reporting
List
Customer 1 - 999
Company code 0001
Op.items ky dt. DDMMYY
Balance -
Acts recvble balances in LC
VAR1 Fr./to Opt. Typ Protec. Variable
Customer S X N1
Comp.cd 0001 EQ S X
Op.itms ky dt. P N2
Balance S
VAR2
Customer 500/599 EQ S X
Comp.cd. 0001 EQ S
Op.itms ky dt. P N2
Balance S
. . .
Variant for RFDSLD00
Progr.: RFDSLD00
X Execute
. . . with variant VAR1
Variable
Name Type fr./to Option
N1 S 1 - 999 EQ
N2 P DDMMYYEQ
. . .

A report can be called up either directly from the application menu or using certain system functions.

To run a report you can either enter the necessary parameters manually or call up a variant (a set of
stored parameters).

You can protect the values entered in your variant ((P=parameters, S=select options) from being
overwritten.

You can use a variable to include a parameter from a data area not evaluated by the report in your
parameters for the report

SAP AG
Defining A Job
Immediately
Date / time
By job. . .
hourly
daily
weekly
monthly
other intervals
Printer
Spool request
Spool control
Cover sheets
Print format
Start date Repetition period Print details
Defining background processing
Job name SALDENLISTE
Program RFSSLD00
Variant SEMI
User name instructor
Target machine

Before you prepare a program to run in the background, you must create a variant for this program.

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Summary Reporting
The SAP system contains a wide range of different
standard reports which you can use for your evaluations.
By specifying various parameters, you determine the
content and scope of the lists that are generated by each
report.
For reports that are run periodically you define a variant
containing certain parameters. This ensures that these
reports all have similar structure/contents.
You can generate any of the reports either immediately or
at a time you specify.

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Chapter Posting with Clearing

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Ten Thousand 10,000
Advice note with check
xxxxxxxx xxxxxx
for account 100100
IR 1,000
IR 6,000
IR 3,000
Various
selection options
sorting options
line layout variants
can be used in open item
processing.
Open Item Processing
OI1 1000 Discount 3%

Clearing is a transaction in which open items are indicated as being complete (cleared).
You can clear open items once an amount of equal proportion on the other side of the account can be
applied to them.
When carrying out the posting with clearing function, you make actual postings. For instance, you post
an incoming payment and clear the invoices settled with that payment in a single transaction.
On the open item processing screen, you can select items in one or more accounts (Other accounts).
You can limit the list to specific open items by using the functions:
Selection
The system will propose important fields for selection. You define the values for these fields.
- Automatic search
The system will select items which match the amount you specify for the bank entry.
Click the Process open items button to display the list of open items.

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Account
cleared when
balance = 0
New items are
created for
overpayment
underpayment
payment on acct
partial payment
Open item processing

If you post an incoming payment, you can clear the invoice(s) at the same time.
You can also enter a partial payment or post an outstanding receivable.

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Selecting Items for Processing
Document header
Bank account
Open items
from account 100100 100100
Other accounts
Automatic search
Selection Selection
Posting date
Reference doc.
Document type
Currency

Item 1 Amount Discount
Clearing Amount Discount
Difference
Process Process
open items open items

SAP AG
Process
Open Item Processing
- Item 1 Amount Discount %
+ Item 5 Field 1 Field 2 Field 3 Amount Discount %
Difference Clearing Amount Discount
+
-
+*
-*
++
--
1
2
3
Settings
Line layout
Doc./local currency
Gross/net
Commands on/off Commands on/off
Document Document Find Find Post Post

On the Settings menu, you can choose, in the same manner as in line item display, a particular line
layout to control how the system displays the list of open items.
Within this list, you can display the entire document for individual items (by placing the cursor on the
document number) or make further selections.
You branch to item processing via Commands on (settings in editing options). You now activate or
deactivate open items and edit cash discount terms.
Once the displayed difference is zero (or within the tolerance limit), clearing can be made (Post).
To process an item, you can also activate it by clicking the amount.
Clicking the cash discount amount or cash discount rate, you can directly edit these fields, for example,
enter a different cash discount amount. The cash discount rate would then be adjusted automatically.
Editing options and processing commands make an optimal combination for processing open items.

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Item 1 Partial Payment 970.00 500.00
Item 2 1,000.00 1,000.00
Amount entered 1,500.00
Assigned 1,500.00
On account
Difference 0
Partial Payment
Item 1 1,000.00 30.00 3%
Item 2 1,000.00
Net amount Payment amount
Amount entered 1500
Assigned 1970
On account
Difference 470
Document
Partial pmnt screen
Standard screen
Residual item screen
Goto
40 Bank 1,500.00
15 Customer 500.00
15 Customer 1,000.00

A partial payment can be made for one or more items (see above example).
In the example, item 2 is being clearing and a partial payment is being entered for item 1. Item 1 is not
cleared.
The system uses the Invoice reference and Allocation fields to assign the partial payment to the
invoice.

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Item 1 Residual Item 970.00 500.00
Amount entered 485
Assigned 485
On account
Difference 0
40 Bank 485.00
06 Customer 500.00
40 Customer cash discounts 1,000.00
15 Customer 1,000.00 -
Residual Items
Item 1 1,000.00 30.00 3%
Net amount Payment amount
Amount entered 485
Assigned 970
On account
Difference 485
Document
Partial pmnt screen
Standard screen
Residual item screen
Goto

When you post an outstanding receivable, the original open item is cleared.
How much cash discount can be applied to the item and what payment terms are used for the item
depend on the tolerance group of the customer or vendor.

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Clearing with Exchange Rate Differences
Invoice Invoice Payment Payment
Rate 2,0 Rate 2,5
1,000 USD 1,000 USD
2,000 DEM 2,500 DEM
500 DEM
Posting
Exchange Rate Difference Exchange Rate Difference

If you post an invoice in foreign currency and clear it in the foreign currency as well, the system will
automatically post any exchange rate differences.
You can clear the invoice in local currency but will have to enter the exchange rate difference
manually.

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Clearing in a Third Currency
FC1 LC
1500 4/1 1000
Invoice in FC1
FC1
LC
4/15 1000 1400
Expense: LC ERD
100
Amount
paid in
LC2
Amount
paid in
LC
690
1380
Payment in LC2
120
Expense: FC2 URD Expense: FC2 URD
Expense: LC URD Expense: LC URD
10 10
20 20
Amount Amount
calculated calculated
in FC2 in FC2
700 700

You can carry out manual clearing in any currency you like.
The system translates the amount for all selected open items to the clearing currency.
It translates this amount to the local currency and then from the local currency to the clearing currency.
This means that to clear across currencies, you need to make an additional entry in the exchange rate
table.
Example:
4/1 Invoice 1000 FC1 = 1500 LC [rate 1.5]
4/15 Invoice 1000 FC1 = 1400 LC = 700 FC2
[rate 1.4] [rate 2.0]
Payment 690 FC2 = 1380 LC [rate 2.0]
Total difference 120 LC
(ERD) Exchange rate difference 100 LC
(URD) Unrealized deductions 10 FC2 = 20 LC

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1 1
Clearing between Customer and Vendor
Customer invoice 10,000 3% Cash discount
Vendor invoice 4,000 2% Cash discount
Customer payment 930
Clearing between -
Customer - Widgets Inc. Vendor - Widgets Inc.
930 4,000
5,000 9,070
80
150
2 2
3 3
4 4
1 1 3 3
1 1
4 4
3 3
4 4
4 4 2 2
4 4
4 4
10,000 4,000
Sales discounts
Purchase discounts

Any difference that exists can be carried forward as a new open item.
Cash discount depends on the effective rate of each item.
Example:
1.) Outgoing invoice for 10,000 - 3% cash discount - without tax
2.) Incoming invoice for 4,000 - 2% cash discount - without tax
3.) Payment on account for 930
4.) 1.) cleared with 3.): Outstanding receivable equals 5,000.

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Fast Entry: Incoming Customer Payments
Specifications for the following incoming payments _______________
Company code
Posting date
Bank account
Business area
Special G/L ind.
Document type
Posting period
Default data for the following incoming payments _________
Currency
Reference
Document date
Value date
Additional input fields ____________________
Selection by date
Reference number
Bank charges

The specifications you enter are valid for all the following incoming payments you enter until you
delete the specifications or overwrite them.
You can overwrite default data on the entry screen templates.
If you require additional input fields, select them here.
Click the Enter payments button, to display the screen template for entering incoming payments.
If you keep these specifications, this screen is no longer displayed. To delete or change the
specifications, navigate back to this screen by choosing Goto -> Specifications or pressing F3.

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Incoming Payments Fast Entry
Payment details _____________________________________
Customer
Amount
Document date
Amount in LC
Value date
:
:
:
:
Line items paid _________________________________________
Doc / Reference Amount
:
:
:
:

On the Incoming Payments Fast Entry screen, you enter the data for the incoming payments. Items
that match the selection criteria are activated and displayed on the open item processing screen first.
If there is a perfect match for clearing, you can post those items directly on the open item processing
screen.

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Tolerance Groups
Tolerances for user groups
4 Upper limit for user groups
4 Permitted payment differences
Tolerances for user groups
4 Specifications for clearing procedures
4 Permitted payment differences
4 Details for posting residual items resulting from payment differences
Allocation of accounting clerks to tolerance groups
Allocation of accounting clerks to tolerance groups

You allocate every employee to a user group. For each user group, you define permitted payment
differences and upper limits for posting procedures.
Using the master record field Tolerance group, you allocate each customer or vendor to a group of
business partners.

Tolerance specifications for users and for business partners are linked to each other.

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Tolerance Groups for Users
Tolerances for users
Upper limit for posting procedures
Cash discount per line item 5.000%
Invoice 1000 1000
Cash discount 30 30
Incoming payment 960 940
Difference 10 30
Cash discount 40 /

If the payment difference is too big, than an automatic adjustment cannot be made to the cash discount.
In this case, the user can either:
make a manual cash discount adjustment,
post a residual item,
post a partial payment,
deduct cash discount from the payment,
or write off the difference manually.

SAP AG
Tolerance Groups for Business Partners
Tolerances for business partners
Permitted payment differences
Revenue 10
Expense 5
1.0% 2
1.0% 2
Tolerances for users
Permitted payment differences
Revenue 50
Expense 10
1.0% 2
1.0% 2
Invoice(s) 1000 1000 1000
Cash discount 30 30 30
Incoming payment 969 967 960
Difference 1 3 10
Cash discount: 31 30 /
Unrealized cash discount: 3 /

The above illustration shows three examples of how the system automatically adjusts cash discounts
when there are payment differences.
Tolerance values for users and business partners are linked with each other using a AND logic.
Users who are not allocated a user group work with the tolerance specifications for user group '____'.
Customers or vendors not allocated a tolerance group will have the tolerance specifications for user
group '____'.

SAP AG
Account
Clear
Example of a bank clearing account
Checks receivable
1000 1000
Item is cleared

If there are debit and credit items in an account that can be allocated to each other and therefore
cleared, you can carry out this function by choosing:
Account
Clear
You can use this Clearing function for customer and vendor accounts as well as G/L accounts
managed on an open item basis.

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Summary:
There are a number of selection and sorting functions
for processing open items.
Many types of posting are made by the system using
automatic account determination and posting facilities.

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Chapter Automatic Dunning - Operating The
Dunning Process

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How Dunning Works
Dunning program
OI 1
OI 2
OI 3
:
OI n
Overdue item(s)
Name, address, bank
details (optional)
Master record
Payment terms
Payment method
Dunning method
bi-weekly bi-weekly
4 levels 4 levels
: :
Configuration:
2nd d.notice 2nd d.notice
1st dunning 1st dunning
notice notice
Customer/vendor Customer/vendor
Goods 1, invoice 1
Goods 2, invoice 2
Receivable 3
Receivable n

Der Geschftspartner erhlt die Mahnungen entsprechend der berflligkeit der Posten.
ber die Tabelle "Buchungskreisdaten" im Customizing steuern Sie, ob pro Mahnlauf
ein Mahnschreiben (Stufe enspricht der Stufe des ltesten, nicht zum Mahnen gesperrten Postens)
oder
ein Mahnschreiben je Mahnstufe der Posten
erstellt wird.
Wann wieder gemahnt wird, hngt von der Periodizitt des im Stammsatz hinterlegten Mahnverfahrens
und dem Datum der letzten Mahnung (Stammsatz) ab.
Die aktuelle Mahnstufe wird aus den Posten ermittelt. Die letzte Mahnstufe im Stammsatz hat darauf
keinen Einflu. Sie hat nur informativen Charakter.
Die Mahnstufe und das letzte Mahndatum werden nach einem Mahnlauf im Stammsatz aktualisiert.

SAP AG
Customer/vendor
master record
Document Basic parameters Current settings
Key Values For The Payment Program
- Address - Address
- Control - Control
- Pymt transactions - Pymt transactions
- Company code - Company code
data data
- Acct management - Acct management
- Correspondence - Correspondence
Cash disc.flds Cash disc.flds
Pymt method Pymt method
Pymt block Pymt block
Item selection Item selection
Bank selection Bank selection
Pyt meth.selection Pyt meth.selection
Minimum amounts Minimum amounts
Planned amounts Planned amounts
. . . . . .
Payment date Payment date
Account selection Account selection
selection selection
Next payment date Next payment date
. . . . . .

ber die Aussteuerung der Konten nehmen Sie Einflu, welche Debitoren/Kreditoren gemahnt werden
knnen. Voraussetzung sind:
Korrekte Anschriftsdaten, da die Mahnungen in Briefform erstellt und i.a. mit der Post verschickt
werden.
Ein gltiges Mahnverfahren.
Keine Einzugsermchtigung (liegt Einzugsermchtigung vor, knnen nur die zum Regulieren
gesperrten Posten gemahnt werden).
Sie knnen nur offene Posten mahnen, die berfllig sind.
Im Customizing-System stehen Ihnen eine Reihe von Tabellen fr die Aussteuerung der Mahnverfahren
sowie deren Mahnstufen zur Verfgung.
Beim Starten des Mahnprogrammes grenzen Sie die zu mahnenden Belege, Konten und
Buchungskreise ab.

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Master Record - Dunning Data
Dunning proced.
Dunning recipient
Last dunned
Dunning clerk
0001 Dunning block
Leg. dunn. proc.
Dunning level
Grouping key
Dunning areas
Dunning data

Mahnverfahren: Sie definieren und steuern es aus im Customizing; beliebig viele
Mahnverfahren sind mglich ( Customizing).
Mahnempfnger: Soll die Mahnung an einen abweichenden Empfnger gehen (z.B.
Konkursverwalter), legen Sie diesen als Debitor an und hinterlegen die
Debitoren-Stammsatznummer.
Mahnsperre: ber einen (zuvor im Customizing definierten) Eintrag knnen Sie das Konto
zum Mahnen sperren. Sie knnen die gleichen Kennzeichen zum Sperren von
Posten und Konten verwenden ( Customizing).
Gerichtl. Mahnen: Sie tragen hier manuell das Datum ein, an dem ein gerichtliches Mahnverfahren
eingeleitet worden ist. Es werden dann keine Mahnungen mehr fr den Partner
erstellt, sondern nur noch interne Mitteilungen.
Letzte Mahnung, Hier wird durch das Mahnprogramm das Datum der letzten Mahnung hinterlegt
Mahnstufe: sowie die entsprechende Mahnstufe.
Sachb. Mahnung: Sie tragen die Nummer des zustndigen Sachbearbeiters ein.
Gruppierungs- Diesen Schlssel knnen Sie frei definieren und damit festlegen, welche Posten
schlssel: in einer Mahnung zusammengefat werden ( Customizing).
Mahnbereiche: Sie hinterlegen, welche Mahnbereiche bei diesem Konto zum Tragen kommen
knnen. Pro Beleg geben Sie dann den jeweils zutreffenden Mahnbereich ein.
Die Definietion des Mahnbereichs im Buchungskreis sowie die Festlegung, da
Mahnungen je Mahnbereich erfolgen, hinterlegen Sie im ( Customizing).

SAP AG
Dunning Run
Master Master
record record
Documents Documents
Dunning Dunning
dataset dataset
Current
settings
Basic
parameters
- Run -
- Print -
Process
Dunn.level
Dunn.block
Test print
Dunning
notices
Dunn.
lists

With the execution of the dunning program, you receive a dunning proposal which can be edited. You
have the option of setting dunning levels in the items lower as well as blocking or unblocking
individual items from dunning. The changes are logged and can be printed if necessary. However, they
do not cause any database changes to the documents.
After you have executed the Print function, dunning notices are created and the dunning date and
level are stored in the accounts and documents.
With the Sample printout function, you can create dunning notices without updating the database for
accounts and documents. In this way, you can print repeatedly, using other forms if necessary.

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Control Specifications
Status
Maintain
Run date
Identification
01/15/1996
xyz
Additional log Selection criteria Copy
Issue date
All docs posted by
01/15/1996
01/10/1996
Company code
1000
Customers (to/from) Vendors (to/from)

Parameters let you control which items in which accounts are to be dunned.
If you select the "Exclude values " function, you will have selection criteria for accounts and/or
documents in addition to specifications for field name and values.

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Dunning Run
Status
Run date
Identification
01/15/1996
xyz
Dunning selection job is finished
Dunning run
Print
dunn.notices
Display log
Change dunning notice
Change log
Lists
- dunn. statistics
- dunning list
- blocked accts
- blocked items
Schedule
Display log
Test print

You can change the dunning proposal that is generated ( next page).
The dunning selection is logged ( TRACE).
If necessary, there is a log of changes to the dunning proposal, and, if executed, a log for the printing of
the dunning notice.
Dunning statistics are always created in addition to a list of blocked accounts and/or items, if they exist.

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Processing The Dunning Proposal
Specifications from to
Customer
Vendor
Company code
:
Change dunning notices
List
Totals
Due items 5,000
Blocked items 1,000
Blocked, not due 0
Balance 10,000
Customer 1 Dunning
level 2
. . . Arrs Cl Lv Lv Bl Bl . . .
Item 1 . . . 35 1 2 2 _ _
Item 2 . . . 10 0 _ _ A A
: : : : :

You can process the generated dunning proposal in its entirety (without using any delimiting options)
or in sections.
You can set new item dunning levels (St) at lower levels. In addition, you can set or take off a blocking
reason (Sp).
You can call up totals for each account informatively.
Changes are logged and can be printed out if necessary.

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Status
Run date
Identification
01/15/1996
xyz
Parameters have been entered
Printing Dunning Notices
Schedule print
Status
Dunning run scheduled for 01/15/1996 at 18.00:00
Dunning run is finished
Print d.notices scheduled for 01/15/1996 at 20:00:00
Dunning notices printed
Start date
Start time
Start immed.
Printer
01/15/1996
HH:MM:SS

You can define the output (printing) time for dunning notices. Either specify a start time or click on the
Start immediately line.

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Customer - Vendor Clearing
Vendor
Clear with
vendor
Dunning proc.
B
X
AAAA
Customer A Customer A
Debitor
Clear with
customer
Dunning proc.
A
X
AAAA
Vendor B Vendor B
Dunning notice: Dunning notice:
Level Level
Item 1 Item 1 40,000 40,000 2 2
Item 2 Item 2 10,000 10,000 1 1
Item 3 Item 3 -20,000 -20,000 2 2
Total Total 30,000 30,000
40,000 40,000
10,000 10,000
Vendor B Vendor B
20,000 20,000

If you have both vendor and creditor relations with one organization, store the vendor number in the
customer master record and vice versa. Store the same dunning procedure in both master records.
This ensures that dunning will only occur in the event of a common debit balance.
Customer documents must have exceeded the due date for net payment.
Vendor documents are balanced against the dunning volume of the highest dunning level.

SAP AG
Summary Automatic Dunning -
Operating the Dunning Process
The dunning procedure is determined for the dunning run
on the basis of the dunning data from the customer
master record.
Depending on your specifications, the program selects
only overdue items or all open items.
The dunning proposal run can be processed online. After
the dunning notices are printed, the dunning-relevant data
in the document and the customer master record is
updated.

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Chapter Automatic Dunning - Dunning
Program Configuration

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Configuring The Dunning Program
Dunning Procedure Dunning Procedure
Dunning Procedure
Dunn. proced. Minimum amnts Dunn.charges Dunn. texts
Company code data Sort fields Dunning texts
Dunning areas Dunning keys Dunning block reasons
Interest Dunning groups

You define a number of dunning levels (1-9), minimum amounts, dunning charges, and the dunning
text for a dunning procedure.
You also make general specifications for all dunning procedures when you store company code data,
sort fields, and sender specifications.

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0001 Vierstufige Mahnung, 14-tgig
Procedure Procedure Description Description
Maintaining The Dunning Procedure: Overview
General data
Dunning interval in days
Number of dunning levels
Total due items from dunning level
Minimum no.of days in arrears (account)
Line item grace days
Interest indicator
Public holiday calendar ID
Dunning standard transactions
Dunning special G/L transactions
Reference data
Reference dunning procedure for texts 0001
14
4
10
3
Select Select

The dunning procedure is a four-figure alphanumeric term.
The most important parameters are the dunning interval (frequency), the number of dunning levels,
grace values, and defining which items may be dunned.
The field Dunning of Special G/L Transactions is activated when you have activated at least one
special G/L indicator from the list of special G/L transactions.

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Dunning Levels
Days in arrs/interest
Days in arrears 2 16 30 44
Description Four-level dunning, bi-weekly
Dunning level 1 2 3 4
Calculate interest?
Print parameters
Always dun
Always dun
Always dun
10
X X

Using days in arrears, you define when an account gets the next dunning level. The interval can be
larger than or the same as the dunning interval.
The Keep dunning indicator allows you to force a dunning notice when the dunning interval has been
reached for an unchanged dunning proposal. This gives you monitoring capability for accounts that are
involved in a legal dunning dispute.
If you wish, you can print all items (that is, also those that are not yet due).
You can set a payment period to be placed in the dunning text. By entering a holiday ID in the dunning
procedure control, you can ensure that it does not fall on a weekend or holiday (see previous
illustration).

SAP AG
Minimum Amounts
Dunn.level Minimum amount Minimum %. Min.amount Interest
Dunning proced. 0001
1 1,00 1,00 USD
2 2,00 5,00 USD
3 5,00 10,00 USD
4 10,00 10,00 USD
Dunn. balance Level 1 Level 1 9,000 9,000
Dunn. balance Level 2 Level 2 950 950
Dunn. balance Level 3 Level 3 50 50
Account balance Account balance 20,000 20,000
Highest possible dunning level: 2 Highest possible dunning level: 2

You define minimum amounts in terms of currency. If an account manages only open items in one
currency, the system uses your default entries for minimum amounts in that currency. Otherwise, the
default entries are used in local currency.
If a dunnable balance exceeds the minimum amount of a dunning level, the corresponding dunning
level is activated.
If a dunnable balance exceeds the value produced by Account balance* minimum percentage of
dunning level, the corresponding dunning level is activated.
In this way, you can prevent trifling amounts from causing a dunning notice or very small amounts
from obtaining a high dunning level.
If you have activated calculation of interest for a dunning level ( dunning levels), interest rates are
only output when the minimum amount of interest is exceeded.

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Dunning Charges
Dunn.level Minimum amount Dunning charge Dunn.charge %
1 10 5.00 USD
2 10 10.00 USD
3 10 15.00 USD
4 10 15.00 USD
1 100 10.00 USD
4 100 20.00 USD

You define dunning charges in terms of a currency. If an account manages only open items in a
currency, the system uses your default entries for dunning charges in that currency. Otherwise, the
system uses local currency for your default entries.
Within one dunning level, you can define dunning charges in terms of the dunning amount.
If you store the dunning charge in a percentage, the total of all overdue items in this account are
multiplied by this percentage to produce the dunning charge.

You cannot enter both a fixed dunning charge and a dunning charge in a
percentage at the same time.

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Interest Rates
Interest Interest
Interest ind. Curr. Valid from Debit% Credit%
01 USD 01/15/1996 9.25 6.00

You can store an interest indicator for each dunning procedure. If another interest indicator is already
stored in the master record, it has higher priority.
In the above table, you can store daily debit and credit percentages for each interest indicator and
currency.

Dunning charges and interest rates are printed, but not posted by the dunning
program if the appropriate settings are made.

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Dunning Texts
Company code 1000
Account type D
Dunn.level Area Form List name
Standard dunning procedure Standard dunning procedure
1 1 Y150_DUNN_01 Y150_DUNN_01 LIST1S LIST1S
... ... . . . . . .
Legal dunning procedure Legal dunning procedure
Y150_DUNN_03 Y150_DUNN_03 LISTXS LISTXS

You define a form type for each dunning level, and you can link several dunning levels using the same
form type.
Legal dunning procedure requires a separate form.
You define the forms using SAPscript.
You will need different dunning forms if you use dunning procedures that differ in terms of:
number of dunning levels
line layout for items
number of totals lines.

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Company Code Dunn per Separate dunning Reference comp.
dunning area notice per dunn.level code for texts
Company Code Data
X
1000 1000
2000 2000
3000 3000
4000 4000
: :
X
1000 1000
XX
2000 2000
XX
3000 3000
XX
4000 4000
Company Code Data

Using company code data, you specify whether separate dunning notices should be created for each
dunning level and dunning area (if you use dunning area).

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Sort Fields
Dunn.letters/Dunn.List
Prior. Field name Offset Length. .
1 MHNK-BURKS Company code 4
2 MHNK-MAHNS Dunning level 1
: :
Dunning items
Prior. Field name Offset Length. .
1 MHND-FAEDT Net due date 8
2 MHND-BLDAT Document date 8
: :
Sort meth.
Descending

In the sort fields, you define how dunning notices or the items within a dunning notice are to be sorted.
You can store up to five sort fields respectively.

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Block Text
Dunning Block Reasons / Dunning Keys
X
A
B
Dunning Block Reasons
Manual block reason B
Manual block reason A
Dunn.key Max. level Print sep. Text
Dunning Keys
X
Level 1
Level 2
Payment made
1
2
Z
1
2

You can use dunning block reasons for documents and sub-ledger accounts.
You use dunning keys to indicate special documents (such as residual items that should not activate
higher dunning levels).

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Defining Dunning Areas
CoCd. Area Text
1000
1000
Dunning Areas (Definition)
01
02
Domestic customers
Customers abroad

Dunning areas stand for organizational units like sectors, products, or sales organizations.
To create dunning notices for each dunning area, proceed as follows:
1. Define all dunning areas required for a company code in the above table.
2. Set the Dunning notice per dunning area indicator in the "Company code data" table.
3. Store the applicable dunning areas in the corresponding master records.
4. Enter the appropriate dunning area in the document.

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Grouping Key
Grouping key
Description
Text
Application of rule
for customers
for vendors
Fields for grouping payments
Field 1
Field 2
Field 3
Name Meaning Offset Length

If you want to dun the open items of a business partner as a group from certain standpoints, create
corresponding grouping keys.
For each key, you may include one or two fields from line items.
Store the corresponding grouping key in the master record of your business partner.
Items whose content is the same in these fields are dunned as a group.
You can apply dunning areas and grouping keys together.

SAP AG
Sender Specifications
Area Header Footer Signature Sender
Company Code 1000
F_0001_HEADER F_0001_HEADER F_0001_FOOTER F_0001_FOOTER F_0001_SIGNATURE F_0001_SIGNATURE F_0001_SENDER F_0001_SENDER
01 01 F_0101_HEADER F_0101_HEADER F_0101_FOOTER F_0101_FOOTER F_0101_SIGNATURE F_0101_SIGNATURE F_0101_SENDER F_0101_SENDER
02 02 F_0001_HEADER F_0001_HEADER F_0001_FOOTER F_0001_FOOTER F_0001_SIGNATURE F_0001_SIGNATURE F_0001_SENDER F_0001_SENDER
IDES Inc.

If you dunn according to dunning areas within a company code, you can feed various standard texts
into the dunning forms.
You define standard texts using SAPscript.
You define standard texts for each company code/dunning area.

SAP AG
Dunning Run
Master Master
record record
Documents Documents
Dunning Dunning
dataset dataset
Current
settings
Basic
parameters
- Run -
- Print -
Process
Dunn.level
Dunn.block
Test print
Dunning
notices
Dunn.
lists

The dunning program selects dunnable accounts and their items and saves this information to databases
MHNK, MHND and F150D.
MHNK contains master record information.
MHND contains document information.
F150D contains totals specifications from the respective account master data.
The print program takes its information from databases MHNK, MHND, and F150D. It also has access
to master record tables, document tables, and control tables.

SAP AG
Summary Automatic Dunning -
Dunning Programm Configuration
The dunning procedure contains specifications on
dunning levels, intervals, charges, interest on arrears,
forms (dunning notices) and the parameters governing the
printing of dunning notices.
You can configure the dunning parameters differently for
each of your company codes
All the forms and standard texts are language-dependent.
This means that you must translate your own company-
specific texts into each of the languages that you require.

SAP AG
Chapter Automatic Payments - Operating The
Payment Programm

SAP AG
Payment methods for outgoing pymts
C Check (incl. check management)
K Bank check for payments abroad
L Payments abroad
O Order check
P Postal giro transfer
R EU internal transfer
S Check
T Check/bill of exchange
U Bank transfer
V Clearing (within group)
W Bill of exchange (outgoing pymt)
Pyt methods for incoming pyts
A Bank direct debit
E Bank collection

SAP AG
Process
Master Master Documents Documents
Print dataset Print dataset
Current
parameters
Payment
control
Proposal run
Print program
Process
proposal
Proposal dataset Proposal dataset
Paym.
advice
Accomp.
list
Check
Payment
medium
Bank Bank
transfer transfer
Payment run Payment run

You can use the payment program to settle both outgoing payments and incoming payments, based on
the open, due items from customer and vendor accounts.
The payment program has the following functions:
automatic selection of the items to be paid and the exceptions (for example, blocked items)
creation of payment lists and logs
creation of payment documents (customer/vendor)
creation of payment media (forms, payment advice notes, diskettes).

You generally carry out a payment proposal run first of all. In this case, a proposal dataset which can
be processed before the production run is created.

Companies which pay daily often do without proposal runs. A return call to the bank prevents any
unwanted payment transactions.

SAP AG
Customer/vendor
master record
- Address - Address
- Control - Control
data data
. . . . . .
selection selection
. . . . . .

The account determination keys for automatic payments are:
master record information,
document information,
payment parameters,
current control for the payment program.

SAP AG
Master Record: Customer/Vendor Bank Details
Pyt transactions
Alternative payee Payee in document
DME indicator
Instruction key
PBC / POR number
Bank details
Ctry Bank key Bank acct CK BnkT Ref. details Collection.
US 67292200 987653
Volksbank Wiesloch
Bank data. . . Delete bank details

You can define as many bank details as you wish for each customer/vendor master record. The exact
address and possibly also the SWIFT code must be maintained for each bank. This data can be
imported by means of programs. The bank directory is updated automatically during manual entry
(also see the chapter on Bank master data).

If you have maintained several bank details for one customer/vendor, you should also fill in the
BTyp (partner bank type) field. By entering the corresponding partner bank type, you determine
which customer/vendor bank detail is used to settle the respective item at document level.

You can create alternative payees as master records in the system and enter this number in the
company code or client segment. If you flag Payee in document, then you can trigger a further
screen template for an alternative payee when posting.

SAP AG
Master Record: Parameters For Automatic Payment Transactions
Outgoing payments Outgoing payments
Incoming payments Incoming payments
_ A Bank direct debit
_ E Bank collection
Payment data
Payment terms
Automatic payment transactions
Payment methods
Alternative payee
Individual payment
Clear with customer
Pymt block
House bank
SU
F4
_ P Postal check
X S Check
X U Transfer

You specify which payment methods are supported for an account in the customer/vendor master
record. The possible payment methods have already been defined in the system.

For credit balances, you can sometimes specify both the payment method for the incoming payment
(such as a bank direct debit) as well as for the payment (such as a bank transfer) in the customer
master record.

If you specify, for example, several payment methods for an outgoing payment, it depends on the
current settings for the payment program as well as on the tables in customizing as to which payment
method is chosen.

SAP AG
Amount
Cash discount base Cash disc.amnt
Payment terms ZB01 Days / perc.. 14 / 3.000 30 /
Baseline date Fixed
Payment block
Payment method
House bank
Partner bk type
further data

The payment program settles open items (outgoing payments) which have to be paid straight away,
since otherwise by the time it comes to the next payment run either
the cash discount will have expired or
the due date for net payment will have been exceeded.

In principle, customers take cash discount when paying using a debit memo procedure. A payment is
not made until just before the end of the period for the highest discount.

You can define as from which percentage rate cash discount is to be considered by making individual
specifications in the system.

Depending on the settings in the master record, you can determine
whether an item is to be paid and
which payment method (check, bank transfer...) is to be chosen
by using the Payment block and Payment method fields.

SAP AG
Run date 01/15/1996
Identification xyz
Posting date 01/15/1996
All docs posted by 01/14/1996
Company code Payment methods Next posting date
0001 US 01/22/1996
Vendors (from/to) Customers (from/to)
1 9999 1 9999
Additional
log
TRACE
Maintain Maintain
Status
No parameters yet entered

The payment program selects the items to be paid based on the Next posting date entry in
conjunction with the terms of payment for the items.

You can request an Additional log for test purposes when processing the parameters.

Use the Copy function if the parameters are similar to those used during a previous run.

SAP AG
Run date 01/15/1996
Identification xyz
Status
Parameters entered
Status
Parameters entered
Payment proposal created
Schedule proposal Schedule proposal
Start date Start date 01/15/1996 01/15/1996
Start time Start time HH:MM:SS HH:MM:SS
Start immed. Start immed.
Target machine Target machine

The payment proposal is run in the background where you can also choose to execute it immediately.

The status shows you the current state of the payment proposal job.

You can do without the proposal run and start the payment run straight away.

SAP AG
Control Specifcations: Payment Proposal
Proposal Proposal
dataset dataset
Proposal Proposal
list list
Exception Exception
list list
Proposal Proposal
log log
TRACE TRACE
Payment settlement list
Amounts by business area
Amounts by country
Amounts by currency
Amounts by payment method
Amounts by bank
List of
blocked
accounts/
items
Job log
Check due date
Pyt method selection
Payment documents
Process

The payment proposal generates the total list and partial lists according to different criteria.

If there are blocked accounts or items, then exception lists are generated.

If you have requested an additional log, then you are informed in detail about the individual steps of
the payment run.

SAP AG
Doc. Doc. CoCd CoCd Curr. Curr. Terms Terms CshDsct CshDsct Amount Amount
Doc. 1 Doc. 1 1000 1000 USD USD 3 3 300 300 10,000 10,000
: :
Doc.n Doc.n
Payments/ Exceptions
Vendor Custmr BuAr Itm PM House bk Cur CshDsct Amnt
Acct 1 1 * * * Exceptions * * *
Acct n 1 U CITB USD 300 9700
. . . . . . . . . . . . . . . . . . . . .
Change Change Selection Selection
Change line items Change line items
Pymt method Pymt method U
House bank House bank CITB GIRO
Due date Due date 01/15/1996
Payment block Payment block
Payment terms Payment terms
: :
Acct selected Reallocate

You can change the payment method, the house bank (bank ID and account ID) and the due date for
the account on which you have positioned your cursor using the Change function.

You can view the items selected by the proposal run using the Choose function. The following
editing options refer to one item in each case.

You have the following editing options at item level:
set / remove payment block
select a different cash discount line
make a new allocation regarding payment methods, house bank or due date.

All changes are taken into consideration by the payment program but are not recorded in the master
record or document.

SAP AG
Status
Parameters entered
Payment proposal released
Payment run started
Posting orders: n generated, n completed
Payment run completed
Schedule payment Schedule payment
( )
Run date 01/15/1995
Identification xyz
Status
Parameters entered
Start date Start date 01/15/1995
Start time Start time HH:MM:SS
Run immed. Run immed.



SAP AG
Bank transfer
Payment
summary
Euroscheck
Check
Payment Payment
dataset dataset
Program run date Program run date 08 June 08 June
Identification Identification XYZ XYZ
: :
Paying company code Paying company code 0001 0001
: :
No.of test prints No.of test prints _ _
Print Print
Payment Payment
list list
Exception list Exception list TRACE TRACE
Documents
25 vendors
50 outgoing cash
Program RFFOD_ _X
Py.Adv.
File Transfer File Transfer

You can integrate printing of the payment media, payment advice notes and payment summary
information into the payment run. To do this, you must specify variants for the print programs (->
following page).

You can also start the print programs directly from the system menu. To do this, you must also enter
the program run date and the identification.

SAP AG
Print prog. Requested variants
BK1000
BK1000
:
RFFOAVIS
RFFOD__X
:
List report Requested variants
Sach01
:
RFZALI00
:

The system proposes the print programs based on the payment methods from the payment run.

You store pre-defined variants for the individual programs.

You can only start printing the payment media from the payment menu if you have allocated a variant.

In addition, you can include printing of the payment lists or exception lists.

SAP AG
Customer/Vendor Clearing
Vendor
Clear with vendor
B
X
Customer
Clear with
customer
A
X
Vendor B Vendor B
Payment: Payment:
Item 1 Item 1 25,000 25,000
Item 2 Item 2 -10,000 -10,000
10,000 10,000
Vendor B Vendor B
25,000 25,000

If a company is both a customer and a vendor, you can offset the receivables against the payables
using the payment program.

To do this, you must make sure that the other account number has been entered in the respective
Customer or Vendor field and that both master records have been set up in exactly the same way
as regards payment transactions.

SAP AG
Summary: Automatic Payment -
Payment Program
If you want to settle an account automatically, the address
data and/or bank data must be correct depending on the
payment method.
You can store several payment methods in a master
record.
The payment method used depends on the current
settings for the payment program and the customizing
table settings.
The open items due are settled. A different logic is applied
to Accounts Payable/Accounts Receivable.
The payment program generates the payment documents
and the dataset for creating the payment transfer media.
Creation of the payment transfer media can be integrated
into the payment run or performed subsequently.

SAP AG
Chapter Automatic Payments - Operating The
Payment Programm

SAP AG
Payment methods for outgoing pymts
C Check (incl. check management)
K Bank check for payments abroad
L Payments abroad
O Order check
P Postal giro transfer
R EU internal transfer
S Check
T Check/bill of exchange
U Bank transfer
V Clearing (within group)
W Bill of exchange (outgoing pymt)
Pyt methods for incoming pyts
A Bank direct debit
E Bank collection

SAP AG
Process
Print dataset Print dataset
Current
parameters
Payment
control
Proposal run
Print program
Process
proposal
Proposal dataset Proposal dataset
Paym.
advice
Accomp.
list
Check
Payment
medium
Bank Bank
transfer transfer
Payment run Payment run

You can use the payment program to settle both outgoing payments and incoming payments, based on
the open, due items from customer and vendor accounts.
The payment program has the following functions:
automatic selection of the items to be paid and the exceptions (for example, blocked items)
creation of payment lists and logs
creation of payment documents (customer/vendor)
creation of payment media (forms, payment advice notes, diskettes).

You generally carry out a payment proposal run first of all. In this case, a proposal dataset which can
be processed before the production run is created.

Companies which pay daily often do without proposal runs. A return call to the bank prevents any
unwanted payment transactions.

SAP AG
Customer/vendor
master record
- Address - Address
- Control - Control
data data
. . . . . .
selection selection
. . . . . .

The account determination keys for automatic payments are:
master record information,
document information,
payment parameters,
current control for the payment program.

SAP AG
Master Record: Customer/Vendor Bank Details
Pyt transactions
Alternative payee Payee in document
DME indicator
Instruction key
PBC / POR number
Bank details
Ctry Bank key Bank acct CK BnkT Ref. details Collection.
US 67292200 987653
Volksbank Wiesloch
Bank data. . . Delete bank details

You can define as many bank details as you wish for each customer/vendor master record. The exact
address and possibly also the SWIFT code must be maintained for each bank. This data can be
imported by means of programs. The bank directory is updated automatically during manual entry
(also see the chapter on Bank master data).

If you have maintained several bank details for one customer/vendor, you should also fill in the
BTyp (partner bank type) field. By entering the corresponding partner bank type, you determine
which customer/vendor bank detail is used to settle the respective item at document level.

You can create alternative payees as master records in the system and enter this number in the
company code or client segment. If you flag Payee in document, then you can trigger a further
screen template for an alternative payee when posting.

SAP AG
Master Record: Parameters For Automatic Payment Transactions
Outgoing payments Outgoing payments
Incoming payments Incoming payments
_ A Bank direct debit
_ E Bank collection
Payment data
Payment terms
Automatic payment transactions
Payment methods
Alternative payee
Individual payment
Clear with customer
Pymt block
House bank
SU
F4
_ P Postal check
X S Check
X U Transfer

You specify which payment methods are supported for an account in the customer/vendor master
record. The possible payment methods have already been defined in the system.

For credit balances, you can sometimes specify both the payment method for the incoming payment
(such as a bank direct debit) as well as for the payment (such as a bank transfer) in the customer
master record.

If you specify, for example, several payment methods for an outgoing payment, it depends on the
current settings for the payment program as well as on the tables in customizing as to which payment
method is chosen.

SAP AG
Amount
Cash discount base Cash disc.amnt
Payment terms ZB01 Days / perc.. 14 / 3.000 30 /
Baseline date Fixed
Payment block
Payment method
House bank
Partner bk type
further data

The payment program settles open items (outgoing payments) which have to be paid straight away,
since otherwise by the time it comes to the next payment run either
the cash discount will have expired or
the due date for net payment will have been exceeded.

In principle, customers take cash discount when paying using a debit memo procedure. A payment is
not made until just before the end of the period for the highest discount.

You can define as from which percentage rate cash discount is to be considered by making individual
specifications in the system.

Depending on the settings in the master record, you can determine
whether an item is to be paid and
which payment method (check, bank transfer...) is to be chosen
by using the Payment block and Payment method fields.

SAP AG
Run date 01/15/1996
Identification xyz
Posting date 01/15/1996
All docs posted by 01/14/1996
Company code Payment methods Next posting date
0001 US 01/22/1996
Vendors (from/to) Customers (from/to)
1 9999 1 9999
Additional
log
TRACE
Maintain Maintain
Status
No parameters yet entered

The payment program selects the items to be paid based on the Next posting date entry in
conjunction with the terms of payment for the items.

You can request an Additional log for test purposes when processing the parameters.

Use the Copy function if the parameters are similar to those used during a previous run.

SAP AG
Run date 01/15/1996
Identification xyz
Status
Parameters entered
Status
Parameters entered
Schedule proposal Schedule proposal
Start date Start date 01/15/1996 01/15/1996
Start time Start time HH:MM:SS HH:MM:SS
Start immed. Start immed.



You can do without the proposal run and start the payment run straight away.

SAP AG
Control Specifcations: Payment Proposal
Proposal Proposal
dataset dataset
Proposal Proposal
list list
Exception Exception
list list
Proposal Proposal
log log
TRACE TRACE
Payment settlement list
Amounts by business area
Amounts by country
Amounts by currency
Amounts by payment method
Amounts by bank
List of
blocked
accounts/
items
Job log
Check due date
Pyt method selection
Payment documents
Process

The payment proposal generates the total list and partial lists according to different criteria.

If there are blocked accounts or items, then exception lists are generated.

If you have requested an additional log, then you are informed in detail about the individual steps of
the payment run.

SAP AG
Doc. Doc. CoCd CoCd Curr. Curr. Terms Terms CshDsct CshDsct Amount Amount
Doc. 1 Doc. 1 1000 1000 USD USD 3 3 300 300 10,000 10,000
: :
Doc.n Doc.n
Payments/ Exceptions
Vendor Custmr BuAr Itm PM House bk Cur CshDsct Amnt
Acct 1 1 * * * Exceptions * * *
Acct n 1 U CITB USD 300 9700
. . . . . . . . . . . . . . . . . . . . .
Change Change Selection Selection
Change line items Change line items
Pymt method Pymt method U
House bank House bank CITB GIRO
Due date Due date 01/15/1996
Payment block Payment block
Payment terms Payment terms
: :
Acct selected Reallocate

You can change the payment method, the house bank (bank ID and account ID) and the due date for
the account on which you have positioned your cursor using the Change function.

You can view the items selected by the proposal run using the Choose function. The following
editing options refer to one item in each case.

You have the following editing options at item level:
set / remove payment block
select a different cash discount line
make a new allocation regarding payment methods, house bank or due date.

All changes are taken into consideration by the payment program but are not recorded in the master
record or document.

SAP AG
Status
Parameters entered
Payment proposal released
Payment run started
Posting orders: n generated, n completed
Payment run completed
Schedule payment Schedule payment
( )
Run date 01/15/1995
Identification xyz
Status
Parameters entered
Start date Start date 01/15/1995
Start time Start time HH:MM:SS
Run immed. Run immed.



SAP AG
Bank transfer
Payment
summary
Euroscheck
Check
Payment Payment
dataset dataset
Program run date Program run date 08 June 08 June
Identification Identification XYZ XYZ
: :
Paying company code Paying company code 0001 0001
: :
No.of test prints No.of test prints _ _
Print Print
Payment Payment
list list
Exception list Exception list TRACE TRACE
Documents
25 vendors
50 outgoing cash
Program RFFOD_ _X
Py.Adv.
File Transfer File Transfer

You can integrate printing of the payment media, payment advice notes and payment summary
information into the payment run. To do this, you must specify variants for the print programs (->
following page).

You can also start the print programs directly from the system menu. To do this, you must also enter
the program run date and the identification.

SAP AG
Print prog. Requested variants
BK1000
BK1000
:
RFFOAVIS
RFFOD__X
:
List report Requested variants
Sach01
:
RFZALI00
:

The system proposes the print programs based on the payment methods from the payment run.

You store pre-defined variants for the individual programs.

You can only start printing the payment media from the payment menu if you have allocated a variant.

In addition, you can include printing of the payment lists or exception lists.

SAP AG
Customer/Vendor Clearing
Vendor
Clear with vendor
B
X
Customer
Clear with
customer
A
X
Vendor B Vendor B
Payment: Payment:
Item 1 Item 1 25,000 25,000
Item 2 Item 2 -10,000 -10,000
10,000 10,000
Vendor B Vendor B
25,000 25,000

If a company is both a customer and a vendor, you can offset the receivables against the payables
using the payment program.

To do this, you must make sure that the other account number has been entered in the respective
Customer or Vendor field and that both master records have been set up in exactly the same way
as regards payment transactions.

SAP AG
Summary: Automatic Payment -
Payment Program
If you want to settle an account automatically, the address
data and/or bank data must be correct depending on the
payment method.
You can store several payment methods in a master
record.
The payment method used depends on the current
settings for the payment program and the customizing
table settings.
The open items due are settled. A different logic is applied
to Accounts Payable/Accounts Receivable.
The payment program generates the payment documents
and the dataset for creating the payment transfer media.
Creation of the payment transfer media can be integrated
into the payment run or performed subsequently.

SAP AG
Chapter Automatic Payments - Configuration
the Payments Program

SAP AG
Payment Control
all company codes all company codes
paying company codes paying company codes
Payment methods Payment methods
Banks Banks
per country per country
per company code per company code
Account determination Account determination
Available amounts Available amounts
Bank selection by postal code Bank selection by postal code
Charges / fees (bills of exch.only) Charges / fees (bills of exch.only)
Value date Value date
House banks House banks
Bank accounts at Bank accounts at
the house banks the house banks
Accounts in SAP Accounts in SAP
system system

The payment control is divided into three areas:
company code parameters
payment method parameters
bank parameters.

SAP AG
Company Codes
Company code Company name City Sdr. co.cd Pyg co.cd.
1000 IDES Inc. Wilming. 1000
0001 . . . . . . . . . 0001
0002 . . . . . . . . . 0001
Control data
Sending company code
Paying company code 1000
Tolerance days for payable 3
Outgoing pymt with cash discount from 1%
Always maximum cash discount
Separate payment per business area
Vendor
Special G/L transactions to pay A F
Sp.G/L transactions for exception list
Customer
Special G/L transactions to pay F
Special G/L transactns for exception list
Select Select

For each company code you define the sending and the paying company code.

In addition you also define, for example,
the number of tolerance days (for vendors only) which you give yourself in addition to the due date
as from which cash discount percentage rate you pay
which special G/L transactions you pay automatically.

SAP AG
Paying Company Codes
Sender Sender
General specifications____________________________
Minimum amount for incoming payments 1.50 USD
Minimum amount for outgoing payments 5.80 USD
No exch.rate differences
Form for payment advice note F110_D_AVIS
Group items for bill/exch.payment
O One bill per due date interval
One bill per due date interval
O One bill per invoice
Due date of bill/exch./bill request for incoming payments.
Due at latest in 90 days
Bill on demand for due date in up to 10 days
Due date of bills of exchange for outgoing pyts
Earliest due date in 10 days
Due at latest in 170 days
Paying Company Codes Paying Company Codes
Paying co. Company name City
1000 IDES Inc. Wilmington
. . . . . .
Select Select

You define the minimum amounts and the form for the payment advice for each paying company code.

You define how many bills of exchange are created for each account during the payment run for the
bill of exchange payment method.

You control which open items for the bill of exchange payment method are to be considered during the
payment run using the due date specifications.

You allocate company code-dependent standard texts to the payment forms using the sender
function.

Make use of the option of one company code paying for several others.

SAP AG
Pym Mth. Description (in relevant lang.) Pym Mth. Description (in relevant lang.)
. . . . . . . . . . . .
U Bank transfer
. . . . . .
Payment Methods Per Country
Select Select
Cntry Name
. . . . . .
US USA
. . . . . .
Select Select
Payment method classification
Check will becreated
POR payment procedure
Postal giro / Postal scheck
EU internal transfer
Payment method for incoming pymts
Allowed for personnel payments
x
Check/bill of exchange
Bill of exchange will be created
Create bill/exch.before due date
Bill of exch.request
Payment demand
Bill/exch.was accepted
Required master record specifications
Street or P.O. box
Bank details
Collection authorization
x
Posting specifications
x
Document type for pymnt ZP
Clearing doc.type ZV
Sp.G/L ind.bill/ex./bill req.
Form printout
Name of the print program RFFOD_U
Name of the print dataset LIST 35
Print dataset for bill/exch.
Key in code line 51

The payment methods are defined country-specifically.

You can only use a particular payment method if the necessary specifications have been made in the
subledger account master record.

The clearing entry for the customer/vendor is carried out using the specified document type.
Recommendation: The Payment methods in country table should not be changed (exception:
entries for document types).

SAP AG
Payment Methods Per Company Code
Amount limits
Minimum amount
Maximum amount 200
HW*
Foreign payments/foreign currency payments
Allowed for pymts to cust/ven.abroad x
Pymts abroad via cus/ven acct?
Foreign currency allowed x
Bank selection control
Optimize by bank group
Optimize by postal code
Posting specifications
Individual pymts for marked items
Post bill liability at bank
Bill of exchange requests
Days until due date
Form data
Company code Company code Comp.name Comp.name
1000 IDES Inc.
. . . . . .
Pyt Mthd Pyt Mthd Description (in relevant lang.) Description (in relevant lang.)
S Check
U Bank transfer . . .
x
x

You can
make a payment method dependent on amount
allow a payment method for foreign payment transactions.

If you select Optimize by bank group then the payment program can, for example, try to pay from a
bank within the same clearing house system (ACH).

If you select Optimize by postal code then the system tries to pay from a bank whose postal code
area is the same as that of the target bank.

Form data is allocated to each payment method (-> following page).

SAP AG
Payment Methods Per Company Code II
Forms
Form for the payment medium Z110 ...
Next form
Correspondence sort vrnt
Paid items printout
Line items per form
Payment advice note if form is full
Extra forms if form is full
Line item sort variant
Details on the form
Issuer IDES Inc.
:
Wilmington
:
Form data

An individual payment medium form is allocated to each payment method.

If you limit the number of items per form, then the payment method is only taken if fewer / the same
number of items are to be paid for one account.

SAP AG
Payment Program Configuration
Sequence Sequence
Company code Company name City
1000 IDES Inc. Wilmingt.
. . . . . . . . .
Position cursor on company code and select:
Bank selection
Payment program configuration
Amounts Amounts Accounts Accounts Value date Value date PstCd PstCd Charges Charges
of banks
(house banks)
planned for
each bank and
each account
for incoming
and outgoing
payments
bank accounts
at your house
banks and
related G/L
accounts
Days to due
date
PstCd

Banks
as
applicable

For each company code you define:
the house banks as well as the accompanying bank accounts and G/L accounts,
the available amounts,
the days until the value date,
the bank selection dependent on the postal code in the customers/vendors address (if you have
selected Optimize by postal code within Payment methods in company code).

You will find the individual tables explained in detail on the next few pages.

SAP AG
Bank Selection
Company Code Company name
1000 IDES Inc.
. . . . . .
Pymt Mth Currency Sequence HB HB for bills/exch. Account for bills
S LC* 1 Bank 1
S LC 2 Bank 2
U LC 1 Bank 1
U LC 2 Bank 2
LC = local currency LC = local currency
HB = house bank HB = house bank

You define a bank ranking order from which payments are to be made for each company code, payment
method and currency.

You have defined the banks previously in the system as house banks under the respective bank ID.

SAP AG
Company code Company name
1000 IDES Inc.
. . . . . .
House bk Pymt Mth Currency Bank acct Bk sub-acct Clrg acct Chrg type BuAr
Bank 1 S LC GIRO Bank 1 - S 0001
Bank 1 S LC GIRO Bank 1 - U 0002
. . . . . . . . . . . . . . .
Bank 2 S LC GIRO Bank 2 - S
Bank 2 U LC GIRO Bank 2 - U
Bank 2 W LC GIRO Bank 2 - W Bank 2 - G.clg
. . . . . . . . . . . . . . . . . .

You allocate the corresponding bank account using its account ID to the respective house bank,
payment method and possibly also the currency. The account ID keeps its identity when setting up the
house bank.

Define a bank sub-account (G/L account) for the clearing entry to the subledger account for each bank,
payment method and currency.

You manage the bank sub-accounts on an open item basis so that you always have a record of the
payments which are on their way.

The SAP system generates an additional offsetting entry for bill of exchange payments. To do this, you
must define a clearing account for payment method W.

SAP AG
Available Amounts
1000 IDES Inc.
. . . . . .
House bk Acct ID Days Currency Outgoing payment Incoming payment
Bank 1 GIRO 3 LC* 100,000 1,000,000.00
. . . . . . . . . . . . . . .
Bank 2 GIRO 3 LC* 200,000 1,000,000.00
. . . . . . . . . . . . . . .
LC* = local currency

You can limit the amount available for each house bank account for the payment run. The system then
pays from one particular bank until such time as the available amount has been used up.

The payment program notes the amount remaining in each case after processing an account.

You can make planning more detailed by using the Days specifications. The Cashed checks
duration master record field corresponds with this date limit as well as with the Days until value
date table.

You may only use the identifications entered in the tables for house banks and house bank accounts in
the respective fields.

SAP AG
Bank Selection By Postal Code
Company code Name d. Firma
1000 IDES Inc.
. . . . . .
Ctry Lower limit Upper limit House bank
DE 10000 19000 Bank 1
DE 20000 89000 Bank 2
. . . . . . . . . . . .

If you have selected Optimize by postal code for a payment method, then the bank in whose postal
code area the subledger accounts postal code lies makes the payments.

SAP AG
Value Date
Company Code Company name
1000 IDES Inc.
. . . . . .
Pyt Meth House bk Bank acct Amount limit Currency Days to value date
S Bank 1 GIRO 1,000 LC 3
S Bank 2 GIRO 5,000 LC 2
. . . . . . . . . . . . . . . . . .

The posting date of the payment run is entered as the value date for the bank posting or the latter can be
set as being dependent on amount. (Value date = payment run posting date + days until value date).

The Days until value date correspond with the day specification for the Available amounts.

SAP AG
Charges / Fees
1000 IDES Inc.
. . . . . .
Charge type Amount limit Currency Charges 1 Charges 2
G1 1,000 LC 10 5
G1 2.000 LC 20 10
. . . . . . . . . . . . . . .

Charges types can be defined for the bill of exchange payment method (only used in Spain).

You can use the charges types in the account determination table for the bill of exchange payment
method.

SAP AG
Payment Block Reasons
P Meaning Can be changed Block man.
in payment proposal payment
Released for pymnt
A Blocked for payment x
R Invoice verification
... . . . . . . . . .
P Meaning Day/% Block key Explanation
ZB01 0 A within 14 days 3% cash discount
within 20 days 2% cash discount
within 30 days net
... . . . . . . . . . . . .
Define payment block reasons Define payment block reasons
Default values for payment block in payment terms Default values for payment block in payment terms

The payment block reasons defined can be used at both account and document level.

If you define a block reason within a term of payment, then this appears automatically as the default
value when posting a document. You can still overwrite the proposal when posting the document.

SAP AG
Grouping Key
Grouping key
Description
Text
Application of rule
for customers
for vendors
Fields for grouping payments
Field 1
Field 2
Field 3
Name Meaning Offset Length

You can determine a rule according to which the open items of an account are to be paid together by
using a grouping key. You define the key in the customer/vendor master record.

You can make reference to a maximum of three fields for each grouping key.

SAP AG
Pyt adv.
Payment Payment
summary summary
Check
Payment
medium
Printing Payment Media
Payment program Payment program
REGUD
Tables Tables
Bank
transfer
Print program Print program
RFFOD__* RFFOD__*
REGUH
REGUP

The payment program creates the REGUH, REGUP and REGUD datasets.

Data on the payee or payment method is, for example, to be found in REGUH.

Information from the individual documents is to be found in REGUP.

The complete bank data and the amount specifications are to be found in REGUD.

The print program creates the payment media (and payment advice notes if needed) as well as the
payment summary from the information contained in REGUH, REGUP and REGUD. Information can
also be taken from the payment tables.

SAP AG
Main pymt method Main pymt method
e.g. e.g. U= bank transfer U= bank transfer
A= bk direct debit A= bk direct debit
E= bank collection E= bank collection
Print Programs
R F R F F O F O D_ _ D_ _ U U
Application Application
Form
printout
Country

An individual print program exists for each main payment method and for each country.

You allocate the print programs to the payment methods in the Payment methods in country table.

SAP AG
Forms
Country/Form Country/Form
F110_X_YYYYYYYY
F110_D_AVIS
F110_D_SCHECK
F110_D_UEBERWEIS
F110_D_Z1
F110_D_DTA
F110_D_WECHSEL

The forms listed above are defined as standard forms using SAPscript.

You allocate a form to a payment method in the Payment methods in company code table.

If you permit a payment advice for a payment method in the case of a form not fitting on one page, then
only one payment advice note is printed on the payment method form. The F110_X_AVIS form is also
created.

You can copy all the forms using a name beginning with X or Z and change them accordingly to meet
your requirements.

SAP AG
Data Medium Exchange
House bank
DME data
Carry out pymnt method
- as - - -
- by - - -
Payment meth. for comp.code
Form data
extra form
(data medium accomp.sheet)
TemSe TemSe
Print data Print data
DME data DME data
. . . . . .
Print data
mgmnt
DME
mgmnt
File system File system
DME sheet DME sheet
Adv.notes Adv.notes
Payment Payment
summary summary
Print program
Data medium exchange
__ Print medium

The above is reached via the following menu path:
Accounts payable or Accounts receivable menu -> Periodic processing ->Payments -> Environment -> DME
administration

SAP AG
Automatic Cashed Checks (Optical Doc. Entry)
Vendor Vendor
Checks Checks
House bank
vendor
checks
House bank House bank
R/3 appl. R/3 appl.
Optical Optical
document document
entry entry
SAP R/3 application
Batch Batch
input input
session session
MAOBE-
Daten
Cashed
checks
RFSHRU00
Accounts Accounts
payable payable
Payment
program
Checks with SAP doc.no.
in OCR line

Advantages of the automatic cashed checks function:
the optical document entry format is supported by all major banks
the number of manual postings necessary is reduced
automatic clearing takes place via check numbers
processing logs
diskettes can be imported directly at the accounting clerks workplace.

SAP AG
Summary Automatic Payments -
Configurint The Payment Programm
The payment method contains the specifications
governing minimum amounts, payment documents, forms
and print control
The configuration parameters can be defined differently
for each company code
All forms and standard texts are language-dependent.
This means that you must translate your own individual
texts into the languages you require for them.

Chapter Special General Ledger

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SAP AG
Special General Ledger Transactions
Down payment
receivables
Down payment
Bill of exchange
payment request
Bill of exchange
Reverse note
Single bill of exchange
Guarantee of payment

Special general ledger transactions are those transactions which are not posted to reconciliation
accounts in subledger accounting, (although they would appear to belong there), but to special general
ledger accounts.

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SAP AG
GENERAL LEDGER
Posting methods
Down pmts received Down pmts made
CUSTOMERS VENDORS
5,000
2,000
2,000
5,000
1,000
3,000
Down pmts
1,000
3,000
Down pmts

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SAP AG
Controls

Special G/L indicator
Posting key
A Down payments received
F Down payment requests
I Down payment on
intangible assets
M Down payment on
tangible assets
W Bill of exchange
. .
. .
09
19
29
39

Down payments are displayed separately on the balance sheet and are therefore posted to their own
separate accounts. These may in turn depend on the customer or vendor reconciliation account.
Down payments are posted using individual posting keys and special general ledger indicators. This
prevents the payment from being posted to the normal reconciliation account for Receivables or
Payables. The special general ledger indicator is then used to locate the special general ledger
account (e.g. down payments).
Posting keys and special general ledger indicators are predefined in the system and do not generally
need to be entered.

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SAP AG
How Special General Ledger Transactions are
Displayed
Customer / Vendor Customer / Vendor
Balance display Line item display
x with special G/L transactions
Special G/L transactions
0.00 Balance carr. fwd
A Down pmt 10,000 10,000 Debit curr. year
20,000 Credit curr. year
10,000 Current balance
Docs. affecting balance
Down payment request
Down pmt
Special G/L balance

Special general ledger transactions are displayed separately when displaying balance and line items.

R
SAP AG
Down Payments
no. days due
Down payment
request
Down
payment
Final
settlement
Down pmnt Anzahlungs-
clearing
Payment
settlement
Vendors = automatic payment
Customers = automatic dunning

The way in which down payments are processed is almost identical for both customers and vendors. As
a rule, you first post a down payment request which is then responded to by a dunning program (for
customers) and a payment program (mainly for vendors) as appropriate. These programs mean that
down payments are made automatically.
Down payments are then cleared and entered payments to the down payment account until the invoice
can be fully cleared.

R
SAP AG
30,000 10,000 30,000 10,000
20,000 20,000
Down pmt requests.. Down pmt requests.. Down payments received Down payments received
10,000 10,000 10,000
- -- -
Down payment requests Down payment requests
Down pmts....... Down pmts....... _____
10,000 10,000 - -- -
Revenues Revenues
30,000
Bank Bank
10,000
20,000
Down payment request Dunning notice?
Down payment posting (following account statement or automatically)
Final settlement and
down payment clearing
Clearing (following account statement or automatically)
Customer Down Payments
1
2
3
4
5
Customer Customer
3 4
5
Receivables Receivables
3 4
5
1
2
4
1
2
2
5
3
2 4
2

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SAP AG
Down payment request automatic payment
Down payment posting automatically
Final settlement and automatic payment
down payment clearing
Clearing (through automatic payment)
Vendor Down Payments
1
2
3
4
5
Vendor Vendor
3 4
5
Payables Payables
3 4
5
1
2
2
1
2
2
5
3
2 4
4
10,000 10,000 10,000 30,000
20,000 20,000
Down pmt request..... Down pmt request..... Down payments received Down payments received
10,000 10,000 10,000
- -- -
Down payment requests Down payment requests
Down pmts.......... Down pmts.......... _______
10,000 10,000 - -- -
Revenues Revenues
30,000
10,000
20,000

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SAP AG
Down Payments with Tax: Gross or Net Display
Down payments received
Tax category + B
Down payments received
Tax category +
Gross display Gross display
Bank Bank Customer Customer
Down pmt received Down pmt received
Output tax clearing Output tax clearing
Sales tax Sales tax
Bank Bank Customer Customer
Down pmt received Down pmt received
Output tax clearing Output tax clearing Sales tax Sales tax
Net display Net display
Master
record
11,000
11,000
__________
11,000
1,000 1,000
11,000
1,000
10,000
__________
10,000

Down payments with tax amounts may be displayed net or gross depending upon the tax category
defined in the master record for general ledger accounts for down payments received or down
payments made.
Where down payments are displayed gross, sales/purchase tax is automatically offset on a
sales/purchase tax clearing account for down payments.

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SAP AG
Bill of exch.
usage
no. days due
Customer Bill of Exchange
t
Invoice Payment by
bill of exch.
Cash receipt Reverse bill
liability
+ Payment period for bill
I = Collection
D = Discounting
F = Forfaiting
I = Collection
Due date

a rule, you first post a down payment request which is then acted upon by the corresponding dunning
program (for customers) or payment program (mainly for vendors) as appropriate. These programs
mean that down payments are made automatically.
Down payments are then cleared and entered as payments to the down payment account until the
invoice can be fully cleared.

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SAP AG
Outgoing invoice
Payment by bill of exchange
Bill of exchange collection (automatic)
Cash receipt
Reverse bill liability (automatic)
Bills of Exchange Receivable - Collection
1
2
3
4
5
Customer Customer Receivables Receivables
2 1
5
1 2
2
1
3
4
2 5
3 4 5
10,000 10,000 10,000 10,000
Bill of exchange......... Bill or exch. receivable
10,000 10,000 10,000 10,000
Revenues
10,000
Bank
10,000
Bank Bill Collection Clearing Bill collection
10,000 10,000 10,000 10,000

R
SAP AG
Outgoing invoice
Bill of exchange discounting
Reverse Bill liability
Bills of Exchange Receivable- Discounting
1
2
3
4
2 1
4
1 2
2
1
3
3
2 4
4
3
2 2
2
2
22,000 22,000 22,000 22,000
627 627
Bill of exch........... Bill of exch........... Bill of exch. receivable Bill of exch. receivable
22,000 22,000 22,000 22,000
57 Revenue Revenue
20,000
Bank Bank
21,800
Discount revenue Discount revenue Bank: Contingent liability Bank: Contingent liability
550 22,000 22,000
Collection charges Collection charges Discount expense Discount expense
20 200
Customer Customer

The above example is based on the following terms and conditions
- Bill life 90 days
- Discount rate 10%
- Collection charges 20
- Tax rate 10%

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SAP AG
Payment by bill of
exchange
Invoice
Bill of exchange pmt
=
Cash disburse. acct
Bill of exchange
payable
cancelled at bank
Terms of payment
automatic payment

a rule, you first post a down payment request which is then acted upon by the corresponding dunning
program (for customers) or payment program (mainly for vendors) as appropriate. These programs
mean that down payments are made automatically.
Down payments are then cleared and entered as payments to the down payment account until the
invoice can be fully cleared.

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SAP AG
Incoming invoice
Payment of a bill of exchange
Cancellation of current bank bill of exch.
1
2
3
4
Vendor Vendor Receivables Receivables
1 2
2
2 1
3
1
2
3
3 2
4 4 2
10,000 10,000 10,000 10,000

Biil of exch...................... Biil of exch...................... Bill of exch. payable Bill of exch. payable
10,000 10,000 10,000 10,000
Expense Expense
10,000
Bank Bank
10,000
Offset. curr. bills of exch. Offset. curr. bills of exch. Curr. bills of exch. payable Curr. bills of exch. payable
10,000 10,000 10,000 10,000

The above example is based on the following terms and conditions
- Bill life 90 days
- Discount rate 10%
- Collection charges 20
- Tax rate 10%

R
SAP AG
Special General Ledger - Summary
Special general ledger transactions are posted to a
separate reconciliation account and as such are not
posted to the master record reconciliation account.
The R/3 system contains a special menu for processing
down payments and bills of exchange.
When processing down payments, posting can be
integrated with other components by means of an
appropriate account assignment object such as assets.

SAP AG
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Chapter Individual Financial Closing Procedure
External Closing
Internal Closing

SAP AG
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The Individual Financial Closing Process in
Overview
External Closing
Internal Closing

In this course, an individual financial closing refers to the closing activities of a legally independent enterprise.
External and internal aspects of closing operations are both treated here.
This course does not handle closing operations from a corporate group perspective, but focuses on the preparatory
activities in individual companies which are required to later generate a group closing report.
The course begins by looking at closings in various sub-ledgers (Payroll Accounting, Accounts
Payable/Receivable, Material and Asset Accounting) and also includes a look at internal accounting (controlling).
It continues with closing activities in Financial Accounting. Finally, the process for all closing activities are
described from a chronological and integration perspective. The following format was selected for describing
closing activities in the sub-ledgers:
- Counting and checking
- Valuating and reclassifying
- Documenting
- Reporting
The sequence of these activities may vary in the different areas.

SAP AG
R
External Closing
Assets Liabilities Profit and Loss
Statement
Sales revenues
Changes involving stocks
Other capitalized internal
activities
Material expenses
Personnel expenses
Depreciation
Financial results
Equity
Provisions
Payables CO CO CO
SD SD SD FI FI FI
Fixed assets
Current assets
Stocks
Receivables
Securities
Checks, Bank
MM MM MM
FI-
AA
FI- FI-
AA AA
AR AR AR
TR TR TR
TR TR TR
PP PP PP
MM MM MM
FI-
AA
FI- FI-
AA AA
FI FI FI
HR HR HR
FI FI FI
FI FI FI
MM MM MM
AP AP AP
Bal.Sheet

External closing covers closing activities in the commercial sense.
It is assumed that the fiscal year is the closing period. You can carry out closing activities for shorter periods of
time (month, quarter or half-year). References will be made to these alternative time periods.

There are no technical features of SAP software which would necessitate a separate daily closing.

SAP AG
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Asset History Sheet (FI-AA)
Book value
FY start
Book value
FY end
DM
DM DM
$
$$
DM
DM DM
$
$$
+ + - -
Dep.
Dep. Dep.
Acquistns Retiremts Transfer
Postings
Deprecia-
tions

Closing operations in Asset Accounting are documented in the asset history sheet.

SAP AG
R
Internal Closing
Cost Elements Cost center or Cost center group
Actual Plan Deviation Deviation
total %
Material costs
Personnel costs
External services
Depreciation
primary cost elements
secondary cost elements
Total costs
Crediting
secondary cost elements
Cost center over-/under-
absorption
Assessment
Internal
cost
allocation
IAS (CO)

Internal closing in this course refers to closing activities for cost and sales accounting.
Only an overview of cost accounting closing activities is provided since these operations are also covered in
Controlling courses. Only closing activities which have a direct effect on the commercial closing will be covered
here in detail.
The overviews presented in this course should not be substituted for participation in the Controlling courses.

SAP AG
R
Fundamentals of Closing Operations
Current data, due to online processing
Integrated Data Flow in Financial Accounting
Main sub-ledger functions:
Checking and Counting posted data
Valuation and Reclassification by balance sheet key date
Documenting the posting data
Reporting to external institutions

SAP AG
R
Summary Individual Financial Closing
Process
The emphasis in this course is on closings in accounting
in the commercial sense.
You can trace data from the balance sheet/P+L all the way
back to the sources of the data.
Data sources for Financial Accounting are the classic
business areas represented by the sub-ledger accounts.
This souce data must be prepared before you can
generate a balance sheet/p+l statement, partially because
of legal issues (attention:country-specific) or also due to
business considerations.

SAP AG
R
Chapter Closing Operations for Payroll
Accounting
Payroll data on the balance sheet
Counting / checking
-calculating payroll expenses
Regrouping/valuating
-posting personnel expenses to other payables
-debiting and crediting to the clearing cost center /
cost centers in CO
Documentation
-revision support
-other lists
Notifications
-social insurance contribution
-DUEVO (German data communications regulation)
-tax

SAP AG
Payroll Data on the Balance Sheet
Assets Liabilities The Profit and
Loss Statement
Sales revenues
Balance sheet changes
Other capitalized
internal activities
Material expense
Personnel expense
Depreciation
Financial results
Equity
Provisions
Payables CO CO CO
SD SD SD FI FI FI
Fixed assets
Current assets
Stocks
Receivables
Securities
Checks, bank
MM MM MM
FI-
AA
FI- FI-
AA AA
AR AR AR
TR TR TR
TR TR TR
PP PP PP
FI FI FI
FI FI FI
FI FI FI
MM MM MM
AP AP AP
B.sheet
MM MM MM
HR
HR HR
FI-
AA
FI- FI-
AA AA

SAP AG
The Payroll Procedure & Subsequent Activities

Data medium exchange
Remuneration statement
Master data Master data
Changes to
master data
Prepare reporting
Transfer to FI/CO
Contributions statement for HI
FI FI
CO CO
...
May May June June
Release payroll
Exit payroll
Pay.res. May
Subsequent activities per payroll period
Payroll and
correction
Example for Germany

SAP AG
Posting Personnel Costs using a Clearing Cost
Center
Posting summarized
expenses / costs to a clearing
cost center
Repost costs from
clearing cost center to
real cost centers
HR
FI FI
Pass summarized
expenses / costs on to
CO
Document
CC for pers.clearing
Sal. 600
Sal. -100
Sal. -200
Sal. -300
CC 1000
Salaried 100
CC 1001
Salaried 200
CC 1002
Salaried 300
CO CO
Expenses / costs to other
using CCC payables
600.-- 600.--

Two activities are triggered by HR:
1. A complete, summarized document for payroll expenses is posted to a clearing cost center
2. Expenses on the clearing cost center are allocated to the target cost centers

The reasons why summarized data is posted to financial accounting are as follows:

- Cost center-related information that is not required in Financial Accounting is not included in FI
documents
- FI documents contain only one line item per account, which may need to be reconciled and checked.
- FI document data can be reorganized independently from CO data
- You can separate the processing of CO repostings from an FI session.

You might also want to carry out the follow-up FI activities listed below:
- reconciliation of payments / posted amounts
- verification of withholdings for advances
- verification of withholdings for claims
- clearing cross-company code transactions
You might want to carry out the follow-up CO activities listed below:
- reconciliation of the clearing cost center

SAP AG
Further Postings Effected for Payroll
Accounting
Posting
payroll
data
Payment to
employee
Tax
HI funds
Posting document
Payment list
Employment tax notification
Statement of contributions paid
Costs
Expense
automatic
manual
manual
manual
Example for Germany
Payr. to pay
Tax to pay
Payr. to pay
Abzuf. SV
Bank
clearing
Bank
clearing
Bank
clearing
Accounts affected by subsequent activity
FI FI
FI FI
FI FI
FI FI
FI FI
FI FI
CO CO
HR HR
HR HR
HR HR
HR HR
SI to pay
FI FI
SI to pay
FI FI
FI FI
Tax to pay FI FI

SAP AG
Particular Aspects of Transfers to FI/CO
Particular
aspects
Retroactive accounting and
posting to special periods
Calculating imputed costs
Specify personnel no.
for clearing in FI
Advances
500.-
600.-
800.-
444 444
445 445
447
500.-
600.-
Advances
Travel expenses paid
via payroll
Personnel costs
FI FI
Further revision
support
800.-
Examples
CO CO
FI FI
CO CO
Docs.
Salaried KST 711 7,000.-
Wage type MA20
Pers.no. 444 4,000.-
Pers.no. 445 3,000.-
Overtime KST 711 220.-

SAP AG
Imputed Costs in Cost Accounting
Jan Feb Mar April May June July Aug Sep Oct Nov Dec
12,000 12,000 12,000 12,000 .... .... .... .... .... .... .... ....
1,200 1,200 1,200 1,200 .... .... .... .... .... .... ....

14,400
Pay
Imputed,
pay scale
vacation
allowance
(10% of pay)
Cost center 4430 Cost center 4430 Object for imputed costs Object for imputed costs
Period Period Period Period
Imp. cost amounts & Imp. cost amounts &
costs actually incurred costs actually incurred
Imp. cost amounts Imp. cost amounts
01
02
03
04
05
06
+ 1,200
+ 1,200
+ 1,200
+ 1,200
+ 1,200
+ 1,200
. . .
- 1,200
- 1,200
- 1,200
- 1,200
- 1,200
- 1,200
+ 15,000
600
01
02
03
04
05
06
. . .
12 balance :
Periodic calc.
of imp. costs
Rules for imp. costs for periodic calc. of imp. costs
Paid vacation
allowance:
15,000

When imputed costs are calculated, rules for imputed costs are defined in the system which are then used for
calculating imputed costs on a periodic basis.
When imputed costs are calculated on a periodic basis, imputed cost amounts are debited to cost centers and
credited to the object for imputed costs (cost center or internal order).
An object for imputed costs, which "collects" imputed amounts, must be defined for periodic calculations of
imputed costs.
During the actual vacation allowance posting, HR can provide
a) either the imputed cost object
b) or the clearing cost center.
Repostings of the complete amounts in CO can be made from the clearing cost center to the
imputed cost object.
This procedure has the following advantages:
cost centers are debited on a steady, periodic basis so that irregular cost fluctuations are avoided
imputed costs actually incurred can be balanced using the object for imputed costs and analyzed using line items.

SAP AG
DUEVO (Data Communications Regulation)
Start payroll accounting
Start DUEVO
Create notifications Create notifications
Maintain personnel data (as required)
(monthly)
(monthly)
List of administrators List of administrators Statements Statements Data medium Data medium

When a DUEVO run is performed, employee data is scanned for anything that is relevant to DUEVO notifications.
The system recognises DUEVO-relevant data using an employees master and time data, and creates notifications
automatically.
A DUEVO run is performed each month after the payroll run for employees who are liable to social insurance
contributions. The system reads the master data and payroll results and scans them for DUEVO-relevant data.
You must first create an events table that contains all of the data relevant to DUEVO.
The events table is then used to create a list of all DUEVO notifications. You can choose to format the list in such
a way that a list is created of DUEVO-relevant data that must be processed manually as part of DEVO (German
Data Entry Regulation).
You can also create DUEVO notification statements for your employees.
Furthermore, it is possible to create a file that contains all DUEVO notifications. The file is copied to a data
medium and transferred as appropriate.

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Chapter Summary Closing Operations for
Payroll Accounting
The payroll accounting run calculates personnel
expenses for external accounting, as well as the
resulting payables and payments.
With regard to internal accounting, the payroll
accounting run calculates personnel costs for cost
centers or orders.
A variety of reporting procedures can be used to
document and create notifications for the payroll
results.

SAP AG
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Chapter Closing Operations for Accounts
Receivable and Payable
Receivables and Payables Presented on the Balance
Sheet
Counting and Checking
- Creating Balance Lists and Balance
Confirmations
Regrouping and Valuation
- Posting Individual Value Adjustments
- Valuating Open Items in Foreign Currency
- Regrouping Receivables and Payables
Documents
- Creating Journals and Account Lists
Reporting
- According to Foreign Trade Regulations

SAP AG
Accounts Receivable and Payable on the Balance
Sheet
Profit and Loss
Statement
Sales Revenue
Balance Sheet Changes
Other Activated
Internal Activities
Material Expenses
Personnel Expenses
Depreciation
Financial Results
CO CO CO
MM MM MM
FI-
AA
FI- FI-
AA AA
FI FI FI
HR HR HR
Assets Liabilities
Stockholders
Equity
Accrued
Liabilities
Accounts
Payable
FI FI FI Fixed Assets
Current Assets
Inventories
Accounts
Receivable
Securities
Cash, Checks
FI-
AA
FI- FI-
AA AA
TR TR TR
FI FI FI
FI FI FI
MM MM MM
Balance
Sheet
SD
SD SD
MM MM MM
AR
AR AR
AP
AP AP
TR TR TR
PP PP PP

SAP AG
Transactions in Sales and Distribution Processing
M M
A A
T T
E E
R R
I I
A A
L L
S S
M M
A A
N N
A A
G G
E E
M M
E E
N N
T T
Sales Sales
Information Information
System System
USD
Sales support Sales support
Sales Sales
Shipping Shipping
Billing Billing
Financial Accounting Financial Accounting
Delivery
Debit
memo
Credit
memo
Invoice
Delivery
free of charge
Subsequent
delivery free
of charge
Returns
Sales
order
Contract
Scheduling
agreement
Sales
activity
Inquiry
Quotation
Shipment

SAP AG
Effects of Creating a Billing Document
Delivery Delivery
Sales order Sales order
Billing
document
Customer
credit
account
Profitability analysis
Accounts
receivable
Sales information
system

When you create a billing document, the system
automatically creates all documents for financial accounting:
- General Ledger
- Profit Center
- Profitability Analysis
- Controlling
- Accounting
and updates the following:
- status in all related sales, delivery, and billing documents
- credit management customer account
- sales statistics for the sales information system
- controlling elements such as profitability analysis and profit center accounting

SAP AG
Consistency
Counting
correspondence : balance confirmation
SAPF130D : customers
SAPF130K : vendors
Letters
Balance confirmations
+ Replies
Checking
Accounts receivable and payable Accounts receivable and payable
information system information system
Balances in local currency
Subledger and G/L ledger
Documents
SAPF190
RFDSLD00 (customers) RFDSLD00 (customers)
RFKSLD00 (vendors) RFKSLD00 (vendors)
Comparison period:
posting period
fiscal year
Time period
balance carried
forward,
debit or credit
balance

You can access other reports for various evaluations using the accounts
receivable and payable information system (report selection).
You process balance confirmations by using correspondence.

SAP AG
1 1
Customizing I : Balance Confirmations
SAPF130D
SAPF130K
Form
Define form names for printing Define form names for printing
correspondence correspondence
2 2
SAPF130D
SAPF130K
Define sender details for Define sender details for
correspondence form correspondence form
Element
Balance confirmation 510 510
Balance notification F130_CONFIRM_01 511 511
Balance request 512 512
Form ID
Check list F130_LIST_01 LI LI
Error list F130_ERROR_01 ER ER
Results table F130_RESULT_01 RE RE
Standard texts
Header F_0001_HEADER
Footer F_0001_FOOTER_01
Signature F_0001_SIGNATURE
Sender F_0001_SENDER

SAP AG
Customizing II : Balance Confirmations
3 3
Define reply addresses for balance Define reply addresses for balance
confirmation confirmation
Company code
Address ID
is specified in program
"Reply to"
Form of address
Name
Street
City
Telephone . . .
4 4
Specify selection criteria for Specify selection criteria for
balance confirmation balance confirmation
variant DEBI account type D, table name KNA1, KNB1, BSEG
variant KRED account type K, table name LFA1, LFB1, BSEG
SAPF130G
These settings depend on the client, and enable you to access additional
selection options from the above tables when you execute SAPF130D
or SAPF130K.
5 5
Prepare balance confirmations for Prepare balance confirmations for
customers and vendors customers and vendors
Create variants for programs SAPF130D and SAPF130K.

SAP AG
Individual Value Adjustments (IVA) for Doubtful
Receivables
D Receivables C
100 000
IVA for receivables
1 500
Allowance for IVA
1 500
Customer
1000 doubtful
500 receivables
IVA
1500*
* net method, without
taxes
General
General General
ledger
ledger ledger
Special G/L
Special G/L Special G/L
account
account account
reconciliation
posting
General Ledger

Doubtful receivables are written off as an individual value adjustment in year-end closing. The special general
ledger method is suitable for this procedure since the transaction is entered in the customer account but is also
posted to a special GL account, Individual Value Adjustments for Receivables.
Valuation adjustment is made if the receivable is determined to be uncollectible. An adjustment must then be made
to taxes on sales and purchases also.

SAP AG
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Foreign Currency Valuation and the Sorted List
Valuing open items in foreign
currency SAPF100
Accounts receivable and payable,
G/L accounts
Different valuation methods in
customizing
-> Parallel currencies can be valued
separately.
Determining the valuation difference
-> Only as a list, no posting entries
-> Valuation at balance sheet key date
+ reversal
-> Balance sheet key date valuation
with update
(note: only for fiscal year-end, no
reverse document)
Direct posting, no batch input, log
Listing Receivables and Payables
SAPF101
By remaining life
Balance Sheet
Current Assets
. . .
Receivables
life less than one year
life more than one year
Vendors with debit balance
Customers with credit balance
Changed reconciliation account
Batch input
Invoice
$ 100 Rate 1.50 CAD
Payment period 01/01/1999
1 1
2 2

Currency codes you use must be defined under global settings in customizing for the entire system. In addition, you
have to specify the number of decimal places that are managed for the individual currencies in the system.
You define the translation rates in the table for exchange rates. The system determines the rates for document entry
and for key date valuations by using the various currency rate types that you also define under global settings in
customizing. Translation rates receive a validity date.

SAP AG
Valuation (with Update)
With translation With translation
Translation Transl. offsetting
20 20
Receivable
C CC C 180 180 C CC C
- -- - - -- -
C CC C 20
Realized
C CC C 10
Bank
C CC C 150
Revenue
180 C CC C
Adjustment
C CC C 20 20 C CC C
Valuation
C CC C 20
1. Invoice 100 FC 1.8
2. Valuation 1.6
3. Payment 1.5
not posted to the
reconciliation account,
only updated in the
document

The accounts above show the posting transactions when valuing items in foreign currency with an update of the
valuation difference in the document line item.
When following the strict lowest value principle, you can use the valuation with an update only for the year-end
valuation.
If you valuate a document line item, the SAP System stores the valuation difference in the document line item. The
system also includes this valuation in clearing the payment.
Exchange rate differences that are not realized as valuation differences in the payment settlement are posted as an
exchange rate translation. You specify how the exchange rate translation is posted for each company code. This is
relevant in certain countries.

SAP AG
Receivable
C CC C 180 180 C CC C
- -- - - -- -
Realized
C CC C 30
Bank
C CC C 150
Revenue
180 C CC C
Adjustment
C CC Cb 20 20 C CC Ca
Valuation
C CC Ca 20 20 C CC Cb
1. Invoice 100 FC 1.8
2. Valuation 1.6
3. Payment 1.5
Valuation (without Update)
a) key date
b) key date + 1

The above accounts show the posting transactions when valuing items in foreign currency without an update of the
valuation difference in the document line item.

SAP AG
Customizing: Exchange Rate Types
Type Inverse Base currency Usage
. . .
B E EE E E EE E Standard translation, selling rate
G E EE E E EE E Standard translation , buying rate
M E EE E E EE E Standard translation , average
. . .
Exchange rates
Type From To Valid from Exch. rate
M USD DEM 01/01/YYYY 2.00000
. . . . . . . . . . . . . . .

Exchange rate types are used for the posting and valuation transactions.
The standard system uses
rate type M for the posting transactions
rate types B and G for the valuation transactions
You define the translation rates for the exchange rate types in the exchange rate table.
If you select the option Inverse, the system determines the inverted rate for currencies combined with only one
entry from the exchange rate table.
You can easily maintain several different combinations of currencies by defining these combinations with a basis
currency

SAP AG
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Customizing: Valuation Methods
Valuation procedure
o Display by line item o Lowest value principle
o Display by open item account o Strict lowest value principle
o Display by reconciliation account o Always valuate
Write extract
Document type SA
Exchange rate determination
Rate type for debit balance Use exchange hedging
Rate type for credit balance
o Determine rate type from account balance
o Determine rate type from item with same invoice ref.
Valuation method KTO
Description FC balance per acct . . .

You can define different valuation methods for valuing foreign currency.
For each valuation method, you specify:
the parameters for the valuation procedure
the parameters for the exchange rate determination
You can use different rate types for determining the exchange rate.

SAP AG
Customizing: Account Determination for
General ledger Currency Currency type
n n Realized exchange rate difference Realized exchange rate difference
Loss
Gain
n n Evaluation Evaluation
Loss
Gain
Balance sheet adjustment
n n Translation Translation
Loss
Balance sheet adjustment loss
Gain
Balance sheet adjustment gain
Chart of accts
INT
Transaction: KDF

To evaluate foreign currency in accounts managed on an open item basis, you define account entries for:
realized exchange rate gains and losses,
valuated exchange rate gains and losses, and
translated exchange rates
for each reconciliation account in subledger accounts.
You execute the evaluation runs using program SAPF100.

SAP AG
Open Item Analysis
Customer 2
100
20
Customer 3
200
Customer 1 Receivables
Adjustment
600
(200)
600
= receivables <= 1 year
100
20
200
< 1 year
1 - 5 years
> 5 years
(VH1)
(VH2)
(VH3)
<= 1 year
> 1 year (VS2)
Example: Customers with Credit Balance
N
o
t p
e
r
m
itte
d
N
o
t p
e
r
m
itte
d
N
o
t p
e
r
m
itte
d
N
o
t

p
e
r
m
i
t
t
e
d
N
o
t

p
e
r
m
i
t
t
e
d
N
o
t

p
e
r
m
i
t
t
e
d
200 200
100 100
20 20
Balance sheet
adjustment
(100)
(20)

The balance of an account determines whether the system displays it as a receivable or payable.
Receivables and payables are displayed separately by remaining life.

SAP AG
Changed Reconciliation Account
Customer
Old rec. 300
Old rec. 400
New rec. 100
Receivables adjustment
700 700
Old receivables
700
Balance: 0
Balance:
700
100
+ 800
New receivables
Receivables adjustment

You can change the reconciliation account in the customer/vendor master record during a fiscal year.
You then can display the receivables at the balance sheet key date by using the old reconciliation account.
You have to restructure the old receivables according to the changed accounting information.

SAP AG
Customizing: Regroup Receivables and Payables
Receivables
<= 1 year > 1 year
(VS2)
Payables (customers with credit balance)
<= 1 year 1 - 5 years > 5 years
(VH1) (VH2) (VH3)
Payables
(VH2) (VH3)
Receivables (vendors with debit balance)
<= 1 year > 1 year
(VS1) (VS2)
Receivables
<= 1 year > 1 year
(VS2)
Payables
(VH2) (VH3)
Vendors
G/L accounts
Customers

An account assignment is not required for representing areas which are not in the subledger. Values are produced
by balancing the reconciliation account against the appropriate open-item account.

SAP AG
Documentation
Journal (documents) Account lists (master
records and documents)
RFBELJ00
Open item balance audit trail
customers / vendors
RFKKBU00
(or RFKKBU10 from data extract)
Company code Document number Amount
.
.
.
Totals sheet
G/L accts Customers Vendors
CC Period Debit Credit Debit Credit Debit Credit
1000 01/1999
02/1999
Customer / vendor
Cleared items
Open items
Totals
01/1999
02/1999

The compact document journal is a condensed list of all documents within the posting period you specify. As a
compact journal, it is suitable for reconciliation purposes (totals sheet). The system creates a separate list for
normal documents, recurring entry documents, and so on.
The balance audit trail is described in more detail in the chapter Closing Procedures for Financial Accounting.

SAP AG
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Reports
Foreign trade regulation
- reports Z2, Z3, Z4: program RFAWVZ40
- report Z5A: program RFAWVZ5A
Advance return for tax on sales and purchases
- See the chapter Closing Procedures for Financial
Accounting.
EC sales list
- See the chapter Closing Procedures for Financial
Accounting.

SAP AG
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Summary Closing Procedures For
Accounts Receivable And Payable
The closing procedures for accounts receivable
and accounts payable are supported by various
programs and reports. The range of tools runs from
documents and lists to programs that can post
items in balance sheet valuations.
In an integrated system, accounts receivable is
supplied with data from the sales department, and
accounts payable is supplied with data from the
purchasing department.

SAP AG
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Chapter Closing Procedures in Inventory
Accounting
Integration of Inventory Accounting
Counting/checking
- Maintaining the GR/IR clearing account
- Physical inventory in Materials Management
Valuation/reclassification
- Lowest value, LIFO, FIFO
- Standard cost estimate
- Inventory cost estimate
- WIP calculation
Documentation
- Stock lists
Reporting
- Intrastat

SAP AG
Integration of Inventory Accounting in the
Balance Sheet
Profit and Loss
Sales revenue
Stock changes
Other capitalized
internal activities
Material expenses
Personnel expenses
Depreciations
Financial results
CO CO CO
FI-
AA
FI- FI-
AA AA
FI FI FI
HR HR HR
Assets Liabilities
TR TR TR
FI FI FI
FI FI FI
MM MM MM
AP
AP AP
TR TR TR
SD SD SD
AR AR AR
Balance
Sheet
Equity
Provisions
Payables
FI FI FI
Fixed assets
Current assets
Stock on hand
Liabilities
Securities
Checks, Bank
FI-
AA
FI- FI-
AA AA
MM
MM MM
PP
PP PP
MM
MM MM

SAP AG
Sales & Sales &
Distribution Distribution
Internal and external Internal and external
accounting accounting
Requirements determined by Requirements determined by
Materials Planning Materials Planning
Master data
Invoice Invoice
Verification Verification
Inventory Management Inventory Management
Goods
receipt
Goods
issue
Transfer
posting
Warehouse Warehouse
Management Management
A
B
Materials
Batches
Vendors
G/L accounts
Customers
Storage bins
.
.
.
Internal procurement Internal procurement
Production Production
External procurement External procurement
Purchasing Purchasing
Invoice
receipt
?

Inventory Management transactions affecting accounting are goods receipts, goods issues or transfer postings (for
example, stock transfers between two plants or a transfer posting from one material to another). Depending on how
a material is valuated, these transactions can lead to a change in the value of a material.
Invoice Verification postings can also affect material valuation.

SAP AG
Cash Discount
Payment
program
Invoice
Gross Net
Gross
Goods receipt Net
Net
Invoice receipt
Payment program
Non-operat-
ing result
Cash Cash
discount discount
deducted deducted
Stock account
credited

Goods receipts are valuated either net or gross (this is defined in the Customizing system). When goods receipts
are posted net, the cash discount granted by the vendor leads to a reduction in the value of the goods receipt.
Irrespective of the time at which a payment is made, a cash discount of 1 % is generally used.
Invoice receipts can be posted either net or gross, depending on the document type used. When a material is
valuated at moving average price, a net posting leads to a crediting of the stock on hand. Independent of the time at
which a payment is made, a cash discount of 1 % is generally used.
When invoices are paid that were posted gross, the payment program checks which cash discount percentage is
valid at the time. The cash discount amount is then posted to a Revenue from cash discount account.

SAP AG
Input tax
( 2 ) 14.70
( 1 ) Goods receipt for 100 pc 1
( 2 ) Invoice receipt for 98 pc 1
( 3 ) Account maintenance
Stock
( 1 ) 100 2 ( 3 )
GR/IR clearing account
( 2 ) 98 100 ( 1 )
( 3 ) 2
Vendor
112.70 ( 2 )

The GR/IR clearing account is maintained in Materials Management when the quantity of a material delivered and
the quantity invoiced differ and no further receipt is expected.
We recommend you maintain the GR/IR clearing account on a monthly basis to ensure that purchase orders (and
therefore also the relevant account postings) that are considered by the system as still open are matched up in good
time with real events.
Closing operations in Financial Accounting also involve analyzing the GR/IR clearing account and ensuring that
the balance is zero (goods delivered, not invoiced/goods invoiced, not delivered).

SAP AG
Print PI
document
Difference
list
3
5
Initiate a recount
5b
Change
count
5a
Batch
Input
Batch
Input
Post differences
6
Create physical
inventory document
1
Actual count
4
Blocking indicator
2

With the continuous inventory method, stocks are counted throughout the whole fiscal year. Every material has to
be physically counted at least once in the course of the year.
With the periodic inventory method, all stocks are physically counted on the balance sheet key date. Every material
has to be counted on this day. During the count the whole warehouse is blocked for any material movements.
Cycle counting is a physical inventory method which involves materials being counted at regular intervals in the
course of a fiscal year. The interval or cycle in which a material is counted depends on the cycle counting indicator
set for the material.
The actual quantity counted within the course of a physical inventory is entered in the material master as the new
quantity for the material. The difference between the quantity counted and the quantity recorded in the system is
posted in Materials Management and if this results in a reduction in stock a posting is made in Financial
Accounting as follows:
Debit Expenses from physical inventory differences, credit Stock.

SAP AG
How material movements and usually material stocks are
valuated within a fiscal year for FI and CO
Material master:

Price control indicator: ?
V price
(average)
S price
(standard)
Moving
average
price
x qty moved
and/or stock
qty
Periodic
unit price
using the
material ledger
x qty moved
and/or stock
qty
Price from
released standard
cost estimate
x qty moved
and/or stock
qty

SAP AG
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Material ledger closed for all
materials in a valuation area
Value differences broken down
New periodic unit price
calculated
Material revaluated, whereby
the price can be changed
manually
Program can be executed
online
or
in the background
No manual price change possible
Material ledger closed
for a material

When the material ledger is closed for a material, the price difference postings are broken down and the balance
posted to the stock account, if sufficient stock coverage exists. If stock coverage is insufficient, the balance is
posted in the relevant proportions to the stock account and to the price difference account.
The new periodic unit price is calculated by dividing the total value by the total stock and remains the same until
the material ledger is closed or a price change made. A manual price change can only be made via the Material
closing function.

SAP AG
Material price change => Revaluation document
Price
change
Price: 4.00
Total stock: 10 pc
Total value: 40.00
Price : 4.50
Total stock : 10 pc
Total value : 45.00
Expenses/revenue reval.
5
Stock account
5
Old valuation Old valuation New valuation New valuation

The change in the valuation price of a material is not a master data change but an accounting transaction that leads
to the revaluation of the total stock of a material in a valuation area.
When a material is valuated at standard price, it can often be necessary to change the valuation price when there is
a large difference between the moving average price (which reflects developments in the delivered cost of the
material) and the standard price.
When a material is valuated at moving average price, the valuation price changes in accordance with the delivered
cost of the material. A manual price change is therefore only necessary in exceptional circumstances - for example,
if no movements have taken place over a long period of time.

SAP AG
Commercial/tax price 1
Material master
As per rate of
movement or
range of coverage
Percentage
devaluation
Commercial/tax
price 1
minus devaluation
Multi-level
As per current
market prices
Lowest
current price
Valuation
price
Lowest
current
market price
Minimum
Single-level
As per rate of
movement or
range of coverage
Percentage
devaluation
Valuation price
minus devaluation
Lowest
current price
Lowest
current
market price
Valuation
price
Minimum
As per current
market prices
Single-level

Both methods to determine the lowest value can be used separately (single-level procedure) or in combination
(multi-level procedure).
Market prices can be determined by analyzing receipts for purchase orders (goods receipts and invoice receipts).
Market prices from purchasing info records, purchase orders and contracts can also be used.
Materials that are slow/non-moving or that have a long range of coverage can be devaluated by a percentage.
The results of lowest value determination can be used for drawing up a balance sheet for both tax and commercial
purposes. Material stocks can also be revaluated.
To update the results of lowest value determination in the material master and to create a batch input session for
revaluating material stocks, you have to run these programs in the background.

SAP AG
R
Closing Operations and
Documentation
Once a month at the start of a new period the period closing program has
to be run in Materials Management. This program is run in the background
and does the following:
It closes the period before last and opens a new period to which
postings are made in Materials Management. Materials
Management postings can only be made to the current period and
the previous period.
It updates stock and consumption values for the previous month
and the current period.
If the new month coincides with a new year, the previous year
fields are also filled.
A number of reports are available in the Logistics Information System to
enable Materials Management to document stock and consumption figures.

SAP AG
Vendor
master record
Import data
Import data
Material
master
record/
info record
Data
selection
Reporting period
03/1994
INTRASTAT
declaration
Paper
PC file
PO
Vendor 123
Paris
100 pc mat XY
GR: 10.03.
IR: 12.03.
Error
log

Data required for INTRASTAT declarations can be maintained in purchase orders placed with foreign vendors
whose legal headquarters are situated in a European Community country.
If import data has been maintained in the vendor master record or in the material master record, this appears as
default data in the purchase order.
An INTRASTAT declaration is created in two steps:
- The goods receipts are selected for those purchase orders that are to be included in the declaration.
- The declaration is created based on the goods receipts selected.

SAP AG
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Summary Closing Operations in
Inventory Accounting
The quantities counted during a physical inventory
form the basis for valuating stocks.
How material values are determined for the current
assets calculation depends on the origin of the
materials: lowest value determination in combination
with either LIFO or FIFO methods is used for
materials procured externally; product costing is
used for materials produced in-house and WIP
calculation for work in progress.
A number of reports are available in the Logistics
Information System to enable you to document stock
and consumption figures.

SAP AG
R
Chapter Closing Procedures in Inventory
Accounting
Integration of Inventory Accounting
Counting/checking
- Maintaining the GR/IR clearing account
- Physical inventory in Materials Management
Valuation/reclassification
- Lowest value, LIFO, FIFO
- Standard cost estimate
- Inventory cost estimate
- WIP calculation
Documentation
- Stock lists
Reporting
- Intrastat

SAP AG
Integration of Inventory Accounting in the
Balance Sheet
Profit and Loss
Sales revenue
Stock changes
Other capitalized
internal activities
Material expenses
Personnel expenses
Depreciations
Financial results
CO CO CO
FI-
AA
FI- FI-
AA AA
FI FI FI
HR HR HR
Assets Liabilities
TR TR TR
FI FI FI
FI FI FI
MM MM MM
AP
AP AP
TR TR TR
SD SD SD
AR AR AR
Balance
Sheet
Equity
Provisions
Payables
FI FI FI
Fixed assets
Current assets
Stock on hand
Liabilities
Securities
Checks, Bank
FI-
AA
FI- FI-
AA AA
MM
MM MM
PP
PP PP
MM
MM MM

SAP AG
Sales & Sales &
Internal and external Internal and external
Requirements determined by Requirements determined by
Materials Planning Materials Planning
Master data
Invoice Invoice
Verification Verification
Inventory Management Inventory Management
Goods
receipt
Goods
issue
Transfer
posting
Warehouse Warehouse
A
B
Materials
Batches
Vendors
G/L accounts
Customers
Storage bins
.
.
.
Internal procurement Internal procurement
External procurement External procurement
Invoice
receipt
?

Inventory Management transactions affecting accounting are goods receipts, goods issues or transfer postings (for
example, stock transfers between two plants or a transfer posting from one material to another). Depending on how
a material is valuated, these transactions can lead to a change in the value of a material.
Invoice Verification postings can also affect material valuation.

SAP AG
Cash Discount
Payment
program
Invoice
Gross Net
Gross
Goods receipt Net
Net
Invoice receipt
Payment program
Non-operat-
ing result
Cash Cash
discount discount
deducted deducted
Stock account
credited

Goods receipts are valuated either net or gross (this is defined in the Customizing system). When goods receipts
are posted net, the cash discount granted by the vendor leads to a reduction in the value of the goods receipt.
Irrespective of the time at which a payment is made, a cash discount of 1 % is generally used.
Invoice receipts can be posted either net or gross, depending on the document type used. When a material is
valuated at moving average price, a net posting leads to a crediting of the stock on hand. Independent of the time at
which a payment is made, a cash discount of 1 % is generally used.
When invoices are paid that were posted gross, the payment program checks which cash discount percentage is
valid at the time. The cash discount amount is then posted to a Revenue from cash discount account.

SAP AG
Input tax
( 2 ) 14.70
( 1 ) Goods receipt for 100 pc 1
( 2 ) Invoice receipt for 98 pc 1
( 3 ) Account maintenance
Stock
( 1 ) 100 2 ( 3 )
GR/IR clearing account
( 2 ) 98 100 ( 1 )
( 3 ) 2
Vendor
112.70 ( 2 )

The GR/IR clearing account is maintained in Materials Management when the quantity of a material delivered and
the quantity invoiced differ and no further receipt is expected.
We recommend you maintain the GR/IR clearing account on a monthly basis to ensure that purchase orders (and
therefore also the relevant account postings) that are considered by the system as still open are matched up in good
time with real events.
Closing operations in Financial Accounting also involve analyzing the GR/IR clearing account and ensuring that
the balance is zero (goods delivered, not invoiced/goods invoiced, not delivered).

SAP AG
Print PI
document
Difference
list
3
5
Initiate a recount
5b
Change
count
5a
Batch
Input
Batch
Input
Post differences
6
Create physical
inventory document
1
Actual count
4
Blocking indicator
2

With the continuous inventory method, stocks are counted throughout the whole fiscal year. Every material has to
be physically counted at least once in the course of the year.
With the periodic inventory method, all stocks are physically counted on the balance sheet key date. Every material
has to be counted on this day. During the count the whole warehouse is blocked for any material movements.
Cycle counting is a physical inventory method which involves materials being counted at regular intervals in the
course of a fiscal year. The interval or cycle in which a material is counted depends on the cycle counting indicator
set for the material.
The actual quantity counted within the course of a physical inventory is entered in the material master as the new
quantity for the material. The difference between the quantity counted and the quantity recorded in the system is
posted in Materials Management and if this results in a reduction in stock a posting is made in Financial
Accounting as follows:
Debit Expenses from physical inventory differences, credit Stock.

SAP AG
How material movements and usually material stocks are
valuated within a fiscal year for FI and CO
Material master:

Price control indicator: ?
V price
(average)
S price
(standard)
Moving
average
price
x qty moved
and/or stock
qty
Periodic
unit price
using the
material ledger
x qty moved
and/or stock
qty
Price from
released standard
cost estimate
x qty moved
and/or stock
qty

SAP AG
R
Material ledger closed for all
materials in a valuation area
Value differences broken down
New periodic unit price
calculated
Material revaluated, whereby
the price can be changed
manually
Program can be executed
online
or
in the background
No manual price change possible
Material ledger closed
for a material

When the material ledger is closed for a material, the price difference postings are broken down and the balance
posted to the stock account, if sufficient stock coverage exists. If stock coverage is insufficient, the balance is
posted in the relevant proportions to the stock account and to the price difference account.
The new periodic unit price is calculated by dividing the total value by the total stock and remains the same until
the material ledger is closed or a price change made. A manual price change can only be made via the Material
closing function.

SAP AG
Material price change => Revaluation document
Price
change
Price: 4.00
Total stock: 10 pc
Total value: 40.00
Price : 4.50
Total stock : 10 pc
Total value : 45.00
Expenses/revenue reval.
5
Stock account
5
Old valuation Old valuation New valuation New valuation

The change in the valuation price of a material is not a master data change but an accounting transaction that leads
to the revaluation of the total stock of a material in a valuation area.
When a material is valuated at standard price, it can often be necessary to change the valuation price when there is
a large difference between the moving average price (which reflects developments in the delivered cost of the
material) and the standard price.
When a material is valuated at moving average price, the valuation price changes in accordance with the delivered
cost of the material. A manual price change is therefore only necessary in exceptional circumstances - for example,
if no movements have taken place over a long period of time.

SAP AG
Material master
As per rate of
movement or
range of coverage
Percentage
devaluation
Commercial/tax
price 1
minus devaluation
Multi-level
As per current
market prices
Lowest
current price
Valuation
price
Lowest
current
market price
Minimum
Single-level
As per rate of
movement or
range of coverage
Percentage
devaluation
Valuation price
minus devaluation
Lowest
current price
Lowest
current
market price
Valuation
price
Minimum
As per current
market prices
Single-level

Both methods to determine the lowest value can be used separately (single-level procedure) or in combination
(multi-level procedure).
Market prices can be determined by analyzing receipts for purchase orders (goods receipts and invoice receipts).
Market prices from purchasing info records, purchase orders and contracts can also be used.
Materials that are slow/non-moving or that have a long range of coverage can be devaluated by a percentage.
The results of lowest value determination can be used for drawing up a balance sheet for both tax and commercial
purposes. Material stocks can also be revaluated.
To update the results of lowest value determination in the material master and to create a batch input session for
revaluating material stocks, you have to run these programs in the background.

SAP AG
R
Closing Operations and
Documentation
Once a month at the start of a new period the period closing program has
to be run in Materials Management. This program is run in the background
and does the following:
It closes the period before last and opens a new period to which
postings are made in Materials Management. Materials
Management postings can only be made to the current period and
the previous period.
It updates stock and consumption values for the previous month
and the current period.
If the new month coincides with a new year, the previous year
fields are also filled.
A number of reports are available in the Logistics Information System to
enable Materials Management to document stock and consumption figures.

SAP AG
Vendor
master record
Import data
Import data
Material
master
record/
info record
Data
selection
Reporting period
03/1994
INTRASTAT
declaration
Paper
PC file
PO
Vendor 123
Paris
100 pc mat XY
GR: 10.03.
IR: 12.03.
Error
log

Data required for INTRASTAT declarations can be maintained in purchase orders placed with foreign vendors
whose legal headquarters are situated in a European Community country.
If import data has been maintained in the vendor master record or in the material master record, this appears as
default data in the purchase order.
An INTRASTAT declaration is created in two steps:
- The goods receipts are selected for those purchase orders that are to be included in the declaration.
- The declaration is created based on the goods receipts selected.

SAP AG
R
Summary Closing Operations in
Inventory Accounting
The quantities counted during a physical inventory
form the basis for valuating stocks.
How material values are determined for the current
assets calculation depends on the origin of the
materials: lowest value determination in combination
with either LIFO or FIFO methods is used for
materials procured externally; product costing is
used for materials produced in-house and WIP
calculation for work in progress.
A number of reports are available in the Logistics
Information System to enable you to document stock
and consumption figures.

SAP AG
R
Chapter Period Closing in Controlling and in
the Projects System
Scope of cost accounting and its
relationship to financial accounting
Restructuring/Valuation
Periodic allocations within cost accounting
and settlements to financial accounting
Documentation
Information systems
Reporting
Reporting for internal and external
purposes

SAP AG
Controlling in R/3
Cost elements
Cost centers Cost centers
Material stocks Material stocks
C
o
n
t
r
o
l
l
i
n
g
a
r
e
a
P
r
o
f
i
t
C
e
n
t
e
r
s
Person-
nel
Material
Cost objects Cost objects
Profitability segments
Assets Assets
External
procure-
ment
Overhead ord. Overhead ord.
Overhead proj. Overhead proj.
Processes Processes
CO- CO-
PA PA
Billing
doc.
CO- CO-
PA PA Revenue types
FI FI
MM MM
HR HR
Capital AM AM
CO- CO-
OM- OM-
CEL CEL
CO- CO-
OM- OM-
CCA CCA
CO- CO-
ABC ABC
CO- CO-
OPA OPA
CO- CO-
ABC ABC
AA AA MM MM
CO- CO-
PC PC
SD SD
Accr.
EC- EC-
PCA PCA
.
.
.

Controlling in the R/3-System consists of:
Overhead Management (CO-OM)

- Reconciliation Ledger
- Cost Center Accounting
- Overhead Orders and Projects
- Activity Based Costing
Product and Production Management
Profitability Analysis
Profit Center Accounting can also be used to provide internal views of the enterprise from Enterprise Controlling
(EC).

SAP AG
Organizational Units in the SAP System from a CO Standpoint
Financials
Company
code
Organizational
unit in external
accounting
Business
area
Independent
accounting
unit (for internal
balance sheets)
Profit Profit
center center
area area
Organizational
unit in
Controlling
Organizational
unit in
Profitability
Analysis
Organizational
unit in
Profit Center
Accounting
Client
Cross-
application
unit (technical
sub-division)
Logistics
Plant
Operating Operating
concern concern
Organizational
unit in
Cost Center
Accounting
Cost Cost
center center
Organizational
unit in Materials
Management
and PPS

The company is defined for financial accounting using company codes and business areas, and for cost accounting
using a controlling area, an operating concern, cost centers and profit centers.
The controlling area represents the structure of the enterprise from the standpoint of controlling. A company code
is a unit for which financial statements are created in Financial Accounting. This can be but need not be identical to
the controlling area.
The operating concern is an organizational unit for which the sales market is segmented in a uniform way.
In addition to these units, another important unit in Controlling is the plant, which represents a business location or
branch of a company. The plant is an organizational unit in Materials Management, Logistics and Production
Planning, and is assigned to a company code -- and therefore also to a controlling area -- via its assignment to a
valuation level.

SAP AG
Assignment of Company Codes to Controlling Areas
Company
code
Company
code...
Company
code 1
Company
code n
area area
area area

You can combine company codes and controlling areas in different ways. This makes it possible to represent
companies with different organizational structures.
If more than one company code is assigned to a controlling area, you can perform cost accounting across company
code boundaries. This means, for example, that you can allocate data to different company codes.

SAP AG
Combination of Company Codes and
Controlling Area
Business area 0001 Business area 0001
Company code 1 Company code 2
area 1000 area 1000
FI
CO
Reconciliation ledger Reconciliation ledger

If you work with business areas in a company code, these business areas are also used in cost accounting.
If more than one company code or business area is assigned to a controlling area, it may become necessary to
reconcile the data in Financial Accounting and Controlling if you have cross-company or cross-business-area
allocations. This is possible using the reconciliation ledger. The reconciliation ledger creates the reconciliation
postings which are needed for this in Financial Accounting.

SAP AG
0 1 2 3 7 8 9
Current
financial
assets
and
short-
term
capital
4
Non-
operating
expenses
and
profits
Stoffe -
Bestnde
primary
cost
ele-
ments
Transfer
of FI
postings
Imputing
costs
Distrib.
5 6
secon-
dary
cost
ele-
ments
Assess-
ment
Stock of
semi-
finished
and
finished
goods
Income/
Changes
in stock/
capitalized
internal
activities
Transfer
of FI
postings
Clo-
sing
secon-
dary
cost
ele-
ments
Internal
alloca-
tions
Order
settle-
ment
Financial Accounting Financial Accounting CO Accounts CO Accounts Financial Accounting Financial Accounting
Overhead
Management
Profitability
Analysis
Example: GKR

The chart of accounts contains all the accounts in Financial Accounting and all the cost elements in Controlling.
From the cost accounting point of view, this represents an integrated accounting system, since the expense and
revenue accounts in Financial Accounting correspond to the primary cost elements and the revenue elements, and
the postings are passed on to cost accounting in realtime.

SAP AG
Primary cost elements
Primary cost elements
Cost elements for
imputed costs
Secondary cost elements
Allocation cost elements
Assessment cost elem.
Overhead surcharges
Cost elements for order
settlement
Revenue elements
Revenue elements
Sales deductions
Account
G/L accounts Subs.ledger accts
Inc.statemt accts Bal.sheet accts Mat. stock accts
Expense accts Fxd asset accts
Accounts that
can receive Customer accts
direct postings
e.g. reconc.accts Vendor
accounts
Vendor
payables Vendor 1111
1,000
1,000
Revenue accts
Accounts that
can receive Financial asset
direct postings mgmt accts
e.g. bank accts
Cost Elements

Expense accounts in Financial Accounting are stored in cost accounting as primary cost elements. The primary cost
elements need to be defined as G/L accounts in Financial Accounting before you can create them in cost
accounting.
Primary cost elements must always be assigned to a cost-bearing object, such as a cost center.
Secondary cost elements are used exclusively in cost accounting. They cannot have a corresponding G/L account
in Financial Accounting. These are only defined in Controlling.
If you want to analyze revenues in cost accounting, you need to create revenue elements in cost accounting, similar
to the primary cost elements. Revenues in cost accounting are purely statistical.
Each cost element is assigned a cost element type which determines which activities the cost element can be used
for. For example, cost element type "3" (Imputed cost element/cost element %) is used to assign imputed costs for
overhead. This cost element type also allows primary costs to be posted from Financial Accounting.

SAP AG
Allocating Costs to CO Objects I
Allocation
Criteria
Receiver Sender
Allocation cost center Allocation cost center
"periodic reposting" "periodic reposting"
Service cost center Service cost center
"Distribution" "Distribution"
Service cost center Service cost center
" Internal activity " Internal activity
allocation " allocation "
Primary cost center
Internal order/Project
Retain original cost
elements
Retain original cost
elements
Use cost elements for
internal activity
allocation
Cost center
Internal order/Project
Cost center, Internal order,
Project, PP order
Credit object Credit object
Cost ctr / accrual mgt order Cost ctr / accrual mgt order
"Accruals" "Accruals"
Use settlement cost
elements
Cost center
Service/ Primary cost center Service/ Primary cost center
"Activity clearing at actual "Activity clearing at actual
activity price" activity price"
Use cost elements for
internal activity
allocation
Cost center

Whereas the first four accounting methods listed in the picture are only used in Overhead Management, the other
two can also be used for objects outside of Overhead Management.
All allocations can be repeated as often as you want.

SAP AG
Cost Clearing in External Accounting
l Settlement from internal accounting to external
accounting takes place through:
n Settlement of investment orders to assets under
construction or assets
n Settlement of overhead cost orders to general
ledger (e.g. to fixed asset clearing account, where
FI-AA cannot be used)
n Settlement of production controlling to inventory
accounting
n Settlement of projects (for settlement of orders)

SAP AG
...
General ledger
Reconciliation postings
Controlling
001 002
001 002 001 002
Company codes
Business areas
Reconciliation postings
Navigations
aids
Reconciliation
reports /
Cost
analyses

The reconciliation stores all the costs in all of Controlling in summarized form. The reconciliation ledger
represents cost element accounting in the R/3 system.
For cross-company or cross-business-area postings in Controlling, the system only creates line items in
Controlling. This information is not automatically passed on to Financial Accounting. The reconciliation ledger
lets you reconcile these postings with Financial Accounting.
Apart from reconciling Controlling and Financial Accounting, the reconciliation ledger also has the following
functions:
CO cost analyses with short runtimes
Navigation tools and an introduction into Controlling from the standpoint of profit and loss statements.

SAP AG
Structure of the Reconciliation Ledger
Account
Company code
Business area
Origin
Object type
Object class
Function area
Account
Company code
Business area
Origin
Object type
object class
Function area
Transaction
Debit/credit indicator
Controlling area currency Controlling area currency
Company code currency Company code currency
Group currency Group currency
Quantity Quantity
Object Object
Partner Partner

This picture shows the structure of the summary records in the reconciliation.
In the reconciliation ledger, the postings are distinguished according to
company code
business area
origin (sub-division of the cost elements)
object type (cost center, order, project, etc.)
object class
function area
All the objects in Controlling (cost centers, orders, etc.) are assigned in some way to an object class. Depending on
the assignment, the reconciliation ledger updates one data record for the object class for each posting to that object.
This gives you the high degree of summarization.
For internal allocations, the fields listed in the graphic are stored for partners as well (senders, receivers). This
makes it easy to represent transfers between company codes.
In addition, the records are updated according to the business transaction and according to credits and debits.
Three currency amounts (controlling area, company code and group currency) and one quantity are updated.
The reconciliation ledger is updated either simultaneously with each posting or later using a special posting
program.

SAP AG
Company code:
Object class:
Company code:
Object class:
Activity:
Debit/Credit:
Value:
0001
Overhead
001
Overhead
Transfer
Credit
$500-
0002
Overhead
001
Overhead
Transfer
Debit
$500+
of the
receiver
of the
sender
Profit/loss accts:
Internal transfers
500
500
500
500
Account determination
$500
Company code
0002
Company code
0001
Reconc.
ledger
General
ledger
Allocation accounts

Postings in Controlling which affect different company codes, business areas or function areas can be passed on to
Financial Accounting in order to create reconciliation postings there.
You can create reconciliation postings at any time. However, be sure to do so after the last relevant CO postings
have been made.
Prerequisites for reconciliation postings are:
Adjustment and clearing accounts must exist in Financial Accounting
The adjustment accounts must be assigned to business transactions or object types, or a combination of these.
Utility functions are available when you create reconciliation postings. These include the functions Detail list
and Test run.

SAP AG
Difference Difference
due to due to
transfers transfers
OK OK
General General
ledger ledger
FI FI CO CO
Reconciliation Reconciliation
ledger ledger
Reconciliation Report
for company code 0001
Account FI CO Balance
400000 200000 150000 50000 50000
415000 500000 500000 0

Special cost element reports are available to let you analyze the reconciliation ledger.
These reports display the figures in cost accounting and in the general ledger.
You can analyze the reconciliation ledger across application boundaries to determined the costs incurred. You can
display the costs according to object types, function areas, object classes, company codes or business areas.

SAP AG
Account-Based and Costing-Based
Profitability Analysis
Account Plan Actual
800000 Revenues
808000 Sales deductions
890000 Cost of goods mfd
550000 Cost center assessment
231000 Price difference account
- Display in account form
- Reconciliation with Financial Accounting
at account level
Value field Plan Actual
Sales quantity
Revenues
Sales deductions
Variable material costs
Variable production costs
Var. misc. cost of goods mfd
Var. cost center under/overabsorp.
Variable price variance from prod.
Variable qty variance from prod.
Other variable variances from prod.
- Display in items of the contrib.
margin scheme
- Reconciliation at a higher level
(account groups, item groups)
Account-based
procedure
Costing-based
procedure

Profitability Analysis uses two different approaches, which you can use individually or at the same time:
the account-based approach
Costs and revenues are displayed in accounts structured according to those in Financial Accounting.This makes it
possible to reconcile your data in Profitability Analysis with that in Financial Accounting at the account level.
the costing-based approach
Costs and revenues are displayed in values fields which you yourself define. The cost elements are then assigned
to these value fields. In addition to value fields, you can also use quantity fields. Value fields let you break down
costs to different items -- independently of the breakdown in financial accounting -- where you see it as
important. This means, for example, that you can decide in how much detail you want to see the production
variances and define your value fields accordingly.

SAP AG
Transfer of Payables/Receivables
Item 1 Profit center A 1,000 Item 1 Profit center A 1,000
Item 2 Profit center B 2,000 Item 2 Profit center B 2,000
Item 3 Profit center C 3,000 Item 3 Profit center C 3,000
1st step: Carry out period-closing activities for payables and receivables in
FI (payables and receivables are sorted according to profit center)
2nd step: Run transfer program in Profit Center Accounting
Sales order
Posting in FI
to revenue 1,000 PrCtr A to revenue 1,000 PrCtr A
Receivables to revenue 2,000 PrCtr B Receivables to revenue 2,000 PrCtr B
to revenue 3,000 PrCtr C to revenue 3,000 PrCtr C
Receivables Profit center A 1,000 Receivables Profit center A 1,000
Receivables Profit center B 2,000 Receivables Profit center B 2,000
Receivables Profit center C 3,000 Receivables Profit center C 3,000
FI FI
SD SD
EC- EC-
PCA PCA

Before you can transfer payables and receivables, you first need to calculate the payables and receivables to be
split in Financial Accounting. In this step, the payables and receivables are broken down according to profit center
and business area. The results are saved and displayed as a list.
Then you can transfer the data to Profit Center Accounting. You receive a list of all the company codes in the
current controlling area. Select the desired company codes and choose the periods you want to transfer. The
payables and receivables are posted to Profit Center Accounting in the reconciliation accounts in the general
ledger. No Financial Accounting documents are created in the process.
If you choose line items, the system creates a line item for each customer and vendor in Profit Center Accounting.
The system displays an error log when processing is finished. You can analyze the posted data using standard
reports in Profit Center Accounting. The reports show the closing balance for the selected period.
Note: The program first transfers the closing balance of open payables and receivables. It also finds the closing
balance for the previous period and posts this with a negative sign. Consequently, the summary records in each
period contain the movements in the payables and receivables, as is usually the case in Financial Accounting.

SAP AG
Report Techniques in Cost Object Controlling
Auftrag123 Auftrag123 Target Target Actual Actual
Material Material 1,800 1,800 3,000 3,000
Internal activities Internal activities 600 600 600 600
External activities External activities 400 400 400 400
Plant activity Plant activity 2,800 2,800 - -
Balance Balance 1,200 1,200
Plant 01 Plant 01 Target Target Actual Actual
Material A Material A 6,000 6,000 6,000 6,000
Material B Material B 12,000 12,000 17,500 17,500
Material C Material C 5,500 5,500 7,500 7,500
Material B Material B Target Target Actual Actual
Order Order 123 123 2,800 2,800 4,000 4,000
Order Order 345 345 3,500 3,500 4,500 4,500
Order Order 456 456 2,500 2,500 3,000 3,000
Order selection
Product drill-down
Material
Cost center/
activity type
WBS element
Cost object
Order
Cost element report
Itemization Origin Line items
Order/cost
object hierarchy
Plant 01 Plant 01
Material B Material B
Order Order 123 123
Order Order 345 345
Object list

You can call up reporting either directly in cost element reporting or via the product drill-down, order selection or
order/cost object hierarchy.

SAP AG
CO-PA Information System
Flexible hierarchy
Division Division
Product group Product group
A A B B C C Z Z
. . . . . .
Report type "segment
list/ranking list"
Revenues
Sales deductions
Net revenues
CGM
CM I
CGM
variable
fixed
-
-
-
Z
X
A
B
xx
xx
xx
xx
. . .
Report type
"step-down"
. . .
Exception reporting
yy > 25,000 USD
Product group A
Product 1 yy
Product 2 yy
Product 3 yy
Product Product

A number of methods are available to let you analyze the profitability of the segments of your business:
flexible hierarchies of characteristics, navigation within these hierarchies and display of reports in step-down
form for value fields or accounts
displaying a ranking list of profitability segments, sorted according to criteria which you can define
display of profitability segments which fulfill certain criteria and highlighting of especially critical segments
You can define your own reports to meet your companys requirements. There are two types of report which you
can define:
a basic report, which you can define quickly and easily in order to analyze specific information spontaneously
a form report, which provides you with all the available formatting and display functions, primarily for use as
standard reports for repeated analyses

SAP AG
R
Summary Period Closing In
Controlling And Projects System
The main organizational unit in Overhead
Management and Production Controlling is the
controlling area, which can store cross-company-
code as well as cross-business-area data.
The reconciliation ledger makes it possible for you to
transfer the data in cost accounting to financial
account for the purpose of reconciliation.

SAP AG
R
Chapter Closing Operations for Asset
Accounting
Assignment of assets to balance sheet
Count/check
- Report tree (e.g. asset lists)
Restructure/assess value
- determining depreciation
- settling investment orders to assets under
construction or assets
- capitalization of assets under construction
- post cost-acct. depreciation/imputed interest
- posting book/tax depreciation
Document
- asset history sheet
Report
- property list

SAP AG
. . .
Company code 1001
Balance Sheet Balance Sheet
1000
Company code 1000
1000 2000 3000 - - -
Assets Assets
intangible assets intangible assets
fixed assets fixed assets
financial assets financial assets
Profit + loss statement Profit + loss statement
Expenses Expenses
depreciation depreciation
- - -
Business area
Client Client
Assets on the Balance Sheet
Software Software
Machines Machines
Securities Securities
100
50

The client is the highest level in the SAP System hierarchy. Specifications which you make on this level apply to
all company codes.
Each company code is an independent accounting unit. The legally required balance sheet and profit and loss
statement are created on this level.
A business area is a separate unit in business terms for which an internal balance sheet and profit and loss
statement can be created.

SAP AG
Cost center Order
ACTUAL PLAN
Posting asset values
Investment
support
Periodic Processing - Overview Periodic Processing - Overview
Index figures
Year Index fig.
yyyy 100.000
yyyy+1 105.125
yyyy+2 109.857
CO CO
Revaluation
Depreciation
posting run
Primary cost
planning
Depreciation area XY: Example Depreciation area XY: Example
periodic posting of asset values periodic posting of asset values
Asset balance Asset balance Account Account
10000 10000
31
Dec
Calendar
Fiscal year change
31
Dec
Calendar
Fiscal year change
Year-end closing
Fiscal Year change/
Year-end closing
Settings
. . .
Periodic Periodic
processing processing

Periodic processing comprises those tasks in Asset Accounting which must be performed at periodic intervals.
Also included are tasks to be performed as part of the special valuation of fixed assets (for example, calculating
replacement values).
Replacement values and insurable values are updated in the system with the help of index series. You need to
define the characteristics of the index series in Asset Accounting Customizing. The specification of current
index figures is a regular Asset Accounting task.
Investment support is a subsidy which a company has received for certain asset investments. Assets which are
eligible for such a subsidy are marked in the asset master records with an investment support key (for further
information, see the System Administration Guide). All specifications for claiming the investment support are
stored in the definition of this key. You can post the claim manually or in a mass procedure.
At present only the values of one depreciation area can be automatically posted online in Financial Accounting:
Therefore, the changes to asset values (transactions) from other areas with automatic posting have to be posted
periodically to the appropriate reconciliation accounts. In the case of derived depreciation areas which do not
record acquisition and production costs, the program posts proportional value adjustments due to retirements,
transfers, post-capitalization and so on.
If you want to plan primary costs on a cost center basis, you can periodically determine planned depreciation
and interest and pass these on to primary cost planning in the CO system via a report.

SAP AG
Report Selection
Asset list
Balance sheet explanations
Explanations for P&L
Cost accounting
Depreciation forecast
Special valuations
Reconciliation
Preparations for closing
Daily total
Taxes
History
Individual asset

The Asset Accounting Information system consists of a report tree. The report tree is a freely definable
hierarchical structure. You specify the structure of the report tree in Asset Accounting Customizing under
Information system.
When you double-click on a node of the hierarchy, the system calls up a standard report. SAP provides a
standard report tree (FIAA) for Asset Accounting. You can copy this tree and modify it as needed:
remove branches of the structure
add branches to the structure
change the report call (call of a user report)
The report tree is found in the application menu for Asset Accounting under Info system. The standard report tree
contains all the standard reports for Asset Accounting. The system always displays the report tree that is currently
defined in FI-AA Customizing.
You can copy and modify the standard report tree or the report tree of another user, under Edit B User tree. In
this way, you can set up the information system according to the needs of the individual user.

SAP AG
Bus.transactions during
"under construction"
phase
Cost center
Settlement of Cap. Investment Orders
Capital Investment Measure
Order
Asset under construction
Asset history
sheet
Periodic
settlement
Asset 1 Asset 1
Asset 2 Asset 2
Asset 3 Asset 3
Final
settlement

The SAP-IM Investment Management component enables you to create orders that automatically have an attached
asset under construction. This is possible when you enter an investment profile in the master record of the order.
During the construction phase, you post all business transactions to the order. During the monthly settlement, all
items that are not settled directly to receivers in controlling (such as cost centers) are settled directly to the asset
under construction. In your monthly financial reports, the capital investment measure appears under assets.
At the final settlement, you settle the asset under construction to the final receivers. You enter these receivers in
the settlement rules for the order. The asset under construction is cleared automatically at the time of the final
settlement.
For this special type of order, you can use both the usual methods of settlement for internal orders, as well as a
special line item settlement.

SAP AG
Asset 3 Asset 3
Asset 2 Asset 2
Asset 1 Asset 1
Gen. master
data
Depreciation
areas
Acquis. Retmt. Transfers
Asset under Asset under
construction construction
Acquisitions Acquisitions
Investment Investment
support measures support measures
Down payments Down payments
Special Special
Depreciation areas Depreciation areas
T
r
a
n
s
f
e
r
s
A
c
q
u
i
s
i
t
i
o
n
s
Capitalization of Assets under Construction
Asset history
sheet
Completed assets
A.u.C.
Buildings
General master data General master data
Automatic handling of special
depreciation and investment support!

Assets you produce yourself have two phases that are relevant to Asset Accounting:
the under construction phase
the useful life.
Generally, the assets have to be shown in two different balance sheet items during these two phases. Therefore,
they have to be managed using a different object or asset master record during the under-construction phase than
for the completed asset. The transfer from the under-construction phase to completed asset is referred to here as
capitalization of the asset under construction. You can manage assets under construction in the FI-AA System
in two ways (depending on the functions you need):
as a 'normal' asset master record
as an asset master record with line item management.
The capitalization of the asset under construction is basically the transfer to a completed asset. This transfer is
handled differently in the two instances.
When you capitalize the asset under construction, the system automatically separates the transactions from the
previous year from the transactions from the current year:
TTY 340 - Acquisitions from previous years transferred from asset under construction
TTY 341 - Acquisitions from previous years transferred to completed asset
TTY 345 - Acquisitions from current year transferred from asset under construction
TTY 346 - Acquisitions from current year transferred to completed asset
If you have more extensive capital investment measures, we recommend using the R/3 IM (Investment
Management) System. Using this system, you can represent capital investments simultaneously as assets under
construction (for accounting purposes) and internal orders or projects (for controlling purposes). For more
information, see the documentation for the IM (Investment Management) System.

SAP AG
Asset u. Const. Asset u. Const.
Invoice Invoice
Engineers, Inc. Engineers, Inc.
steel girders steel girders
excavation excavation
Invoice Invoice
Constructo, Constructo, Inc. Inc.
beams beams
Invoice Invoice
Electro, Ltd. Electro, Ltd.
copper cable copper cable
Installation Installation
1 1
2 2
3 3
100% 100%
70% 70%
20% 20%
10% 10%
10% 10%
80% 80%
Office building Office building
Heating system Heating system
Lighting Lighting
Cost Center Cost Center
Supplier
Withdraw from
stock
Internal activity
Order
A
S
S
E
T
S
EX-
PENSE

When performing a line item settlement of an asset under construction to one or more completed assets, you
should proceed as follows:

1. Select all line items which you want to settle in the same proportion to the same receiver.

2. Define the distribution rule for these line items.

3. Post the settlement of line items in the desired manner to the specified receivers.

Please note that this posting procedure settles all line items to which a posting rule is allocated.

SAP AG
Ordinary
depreciation
Special
depreciation
Periodic
revaluation
I
n
d
e
x
I
n
d
e
x
manually
planned
deprecia-
tion
Dep. Dep.
- -
P P
O O
S S
T T
I I
N N
G G

P P
R R
O O
G G
R R
A A
M M
Cost center Order
Cost element
CO CO
Individual assets
Accounts
FI FI
Interest
10 %
. . . . .
FI-AA FI-AA

The calculation and planning of depreciation, interest and revaluation is controlled by keys in the Asset
Accounting system. They can also be entered manually using a special posting transaction (for more
information, see current-value depreciation). In both cases, these planned values in Asset Accounting have to be
periodically posted to the corresponding expense and asset balance sheet accounts in the general ledger. This
periodic posting takes place using a batch input session. The posting session also posts the different depreciation
types, interest and revaluation, in addition to the writing-off and allocation of special reserves. The system does
not create individual documents, only summarized posting documents (per general ledger account).

SAP AG
Documentation: Asset History Sheet
APC FY start
- Dep. FY start
= Book val. at FY start
+ Acquisition
- Dep. on acquis.
Post-capitaliz.
- Retirement
+ Dep. on ret.
Down payment
Transfer
Dep. on transfer
Inv. support
= Current APC
Accum. dep.
+
Write-up
=
Curr. book val.
0 10 20 30 99

The asset history sheet is the most important and most comprehensive year-end report or intermediate report.
You can create it using any sort versions, and with totals at any group level, just like any other report. In
addition, you can create a compact totals list that does not contain information on the individual assets.
Basic versions of the asset history sheet:
You can now freely define line and column structure of the asset history sheet. SAP supplies country-specific
versions of the asset history sheet. These meet the legal requirements in the given country. There are also
additional history sheet versions.
You can define your own history sheet version. You can freely define
the size (maximum of 10 lines by 8 columns),
the headers of the history sheet items,
supplying of values to the history sheet items
Enter this history sheet version as a parameter when you request the asset history sheet.

SAP AG
Asset values
at fiscal year start Year 2
Transaction 10000 0
APC 10000 10000
Ordinary dep. 3000 - 2100-
Net book value 7000 4900
Asset values
Transaction 0 10000
APC 0 10000
Ordinary dep. 0 3000 -
31
Dec
Calendar
Fiscal Year Change
31
Dec
Calendar
Fiscal Year Change Year-end closing
Year-end closing program Year-end closing program
- Check: - Check:
Can the year-end closing be carried out? Can the year-end closing be carried out?
- Maintenance of the last closed fiscal year - Maintenance of the last closed fiscal year
Closing reports Closing reports
- Asset history sheet - Asset history sheet
- Asset list - Asset list
- . . . - . . .
Depreciation posting run Depreciation posting run
1. 1.
2. 2.
3. 3.
Year-end closing
Fiscal year change Fiscal year change
Fiscal Year Change

The fiscal year change program opens new annual value fields for each asset.
The earliest you can start this program is in the last posting period of the old year.
You have to run the fiscal year change program for your whole company code.
SAP provides you with a check report for year-end closing. It checks
whether the fiscal year change was completed for all assets,
whether depreciation was fully posted,
whether errors exist for any assets.
In addition, if the program finds no errors, it updates the last closed fiscal year for each depreciation area.

SAP AG
R
Summary: Closing Asset Accounting
The report tree in Asset Accounting provides numerous reports for
counting and checking assets. There is also a query provided for the
inventory directory.
Reclassify/assess value
Depreciation and interest are determined automatically using
depreciation keys. These keys are entered in the individual
assets. Depreciation (and/or interest) is displayed in the
individual depreciation areas (book depreciation, tax
depreciation, cost-accounting depreciation, and so on).
Assets under construction can be posted directly, and are
capitalized using the functions of Asset Accounting. There are
also assets under construction used in conjunction with capital
investment orders and projects. These assets under
construction are capitalized at the final settlement of the
measure (order or project) attached to them.
The planned depreciation (or interest) is posted to the general
ledger using the depreciation posting program.
The asset portfolio can be documented using list reports. External
reporting needs are met by the asset history sheet.

SAP AG
R
Chapter Closing Procedures For Financial
Accounting
Check/count
- occurs in the subledgers
Valuate/regroup
- accrual/deferral postings
- valuation of foreign currency balance sheet accounts
- GR/IR clearing account analysis
- BA/PC subsequent adjustment/prof.segm.adjustment
Document
- flexible reporting
- financial statement version
- group evaluations
- planning
- balance audit trail (accumulated)
Report
- tax

SAP AG
Anticipated(accrued) Transitory(deferred)
Service transctn
Payment transctn
Payment transaction
Service transaction
now
later
Example: Example:
Example:
Prepaid rent, taxes on
company car, etc. affecting
the following year
Leasing expenses
must be allocated to proper period

To ensure that expenses are posted to the correct period, you can enter accrual/deferral documents, and then cancel
them in a later step (collective processing). The cancellation date (flag) in that document is then regarded as the
posting date of the cancelling document.
If you need to do accruals/deferrals often, the recurring entry program is recommended.

SAP AG
Accrual/Deferral Posting: Warehouse Lease
Start of warehouse lease
Rent prepayment: quarterly basis
Full expense
1500
Period 12
1/31 2/28
Accrual/Deferral
-1000
12/31
01/01
- 0
Expenses hit
Periods 01 and 02
Cancellation posting
1000
12/1

Prepayment of rent on 12/1
Posting: Debit Occupancy costs credit Bank 1500

Accrual/Deferral posting on 12/31
Debit Accrued income credit Occupancy costs 1000

Cancellation posting on 01/01
Debit Occupancy costs credit Accrued income 1000

SAP AG
Automatic Postings - Exchange Rate Differences
Exch.rate diff. Exch.rate diff.
for open items for open items
Sub-ledger acct G/L account
Currency LC Currency LC
OI management OI management
OI1 = 100 USD OI1 = 200 GBP
OI2 = 500 USD OI2 = 800 GBP
OI3 = 300 CHF OI3 = 400 NLG
OIn = 900 FRF OIn = 500 NLG
LC = Local currency
FC = Foreign currency
Exch.rate diff.in
foreign currency
balances
G/L account
Currency FC
Transactn Transactn
figures figures
in in
LC FC

Use program RFSBEW00 to valuate foreign currency balances.
Use program SAPF100 to valuate accounts managed on an open item basis.
You can only use G/L accounts as foreign currency balance sheet accounts. You can only post to these accounts in
the currency defined in the account.

SAP AG
Exchange Rate Differences in Foreign Currency
Balances
Chart of accts
AAAA
Key Expense accpount Revenue account
|___| Losses from foreign Gains from foreign
currency valuation 1 currency valuation
FW FW Losses from for.curr.val.2 Currency gains 2
. . . . . .
G/L Account
Account number 123456 Bank FC
Chart of accounts AAAA
Company code 0001
Currency FC
Exch.rate diff. key Exch.rate diff. key FC FC

Foreign currency accounts are valuated by balance.
You can calculate exchange rate differences and post them via batch input using the RFSBEW00 program.
Exchange rate differences in foreign currency balance sheet accounts are posted to various gains and losses
accounts based on the exchange rate difference key in the G/L account master record.

SAP AG
Valuating Foreign Currency Balance Sheet Accounts
Posting
rates
Foreign curr. balance sheet acct. Exchange rate
losses account
1,6
1,5
1,4
1000
100
2000
1600
150
2800
480 480
FC LC LC
Document
Account valuation Account valuation
Valuation rate
at key date:
1,3
FC balance X
rate at key date
= 2900 x 1,3
= 3770
Cumulative balance
in local currency
4250
Difference = 480
Batch Batch
Input Input
if required
Adjustment posting Adjustment posting
in local currency in local currency
Valuation
method

Depending on the valuation method used and the balance of the foreign currency balance sheet account, you may
end up devaluing or revaluing your accounts.
You can run the valuation run with the same selections as many times as you like.
If new transactions requiring valuation have been entered since the last valuation, they will be the only items in the
current run included in the valuation process.

SAP AG
GR/IR Clearing Account Analysis and Declaring
Acquisition Tax
700 700
20 20
Situation
Adjustment postings
Balance sheet
Goods GR/IR clearing Vendor
100
200
100
200
(V1)
(E1)
400 (V1) 400
Not yet delivered GR/IR adjustment Not yet calculated
400 400
300 300
Interim account Acquisition tax-incoming
20 (V0) 20 (E1) 20
Acquisition tax-outgoing
20
B a l a n c e S h e e t
Batch Batch
Input Input
( + Reversal docs: key date + 1 )
Analysis
Logs
Entered during
program run

Adjustment postings to the GR/IR clearing account are made whenever you recognize
- Goods which were delivered by the key date, but not yet invoiced, or
- Goods which were invoiced by the key date but not yet delivered.

Additionally, you can declare the acquisition tax for goods received but not yet invoiced.
You can also balance goods receipts with their accompanying invoice receipts, if necessary.
Acquisition tax is then posted for any remaining balance.

SAP AG
Subsequent BA/PC / Profitability Segment Adjustment
Invoice (open items, flagged
for subsequent debit)
- - Receivables / Payables Receivables / Payables
- G/L account item 1
Business area 0001
Cost center 0001
Profit Center 0001
- G/L account item 2
Business area 0002
Cost center 0002
Profit Center 0002
- - Tax item Tax item
1 Calculate subsequent debit
(Information in document)
2 Post subsequent debit Business area 0001 / 0002
Cost center 0001 / 0002
3 Special functions: Profit center 0001 / 0002
Posting run log
Start reversal run (erroneous run) Zero-balance posting
Subs.BA/PC Adjustment Subs.BA/PC Adjustment
Payment (clearing)
- Receivables / Payables
- G/L account item
- - Cash disct item Cash disct item
Profitability Segment Adj. Profitability Segment Adj.
(cash disct distrib.; still:
definite ex.rate diff.)
Business area 0001 . . . Profit center 0001 . . . Cost center report 0001 . . .
Bal.Sht P + L
Receiv-
ables . . .
Taxes
Cash dsct
Revenues
. . .
Payables
. . .
Receivables
Payables
. . .
Costs
Cash disct paid
Batch Batch
Input Input

The subsequent business area/profit center adjustment breaks the receivables/payables and taxes down into the
additional account assignments Business area and Profit Center, which are stored in the G/L account items. In
case of an error, you can set up a reversal run.
The cancellation posting is carried out if the adjustment item posted is cleared at the key date of the new run.

The profitability segment adjustment breaks down cash discount and exchange rate differences which accrue when
customer and vendor invoices are paid according to the following additional account assignments from the cleared
documents G/L account assignment:
-business area
-Partner business area (Consolidation)
-Profit center
-Partner profit center
-some of the CO objects
-all of the fields you defined in the coding block.

SAP AG
Flexible Reporting
Bal.
Receivables
Bal.
Payables
Bal.
Expenses
Bal.
Revenues
Bal.Sht / P + L
User-specific
report tree
Actual / Actual comp. Actual / Actual comp.
Plan / Act. compare Plan / Act. compare
Time series
Drilldown
. . .
Reports
Forms
Standard list
SapScript form
Report
Painter
ABAP/4

You have many flexible options available for designing profitability reports. Multiple data collection and
preparation functions (SAP-EIS tools, ABAP/4, Report Painter, SAPScript forms) exist.
You can place any kind of evaluation in your own user-specific report tree.

SAP AG
Financial Statement Versions
Directory of Financial Statement Versions
Structure Description
XXXX Balance sheet acc.to natl regs

Balance sheet / P+L items Balance sheet / P+L items
Financial stmt version XXXX Bal.sht acc.to natl regs
Hierarchy level 1
_________________________________________________________
1 ASSETS
2 LIABILITIES
3 Profit and Loss
4 Accounts not assigned
Level forwd Text Accnt
Maint.language D
Group acct number
Chart of accounts XXXX

You define a financial statement version in two steps:
- Entry in the directory of financial statement versions
- Define hierarchy levels and assign accounts
Each version must have the following special items:
- Assets
- Liabilities
- Balance sheet profit/loss
- Profit and loss results
- not allocatable.

The balance sheet profit/loss is calculated by the ABAP/4 program RFBILA00 from the assets and liabilities totals
and placed in the Balance sheet results profit/loss item. The Profit and Loss results are determined from all
accounts not assigned to either assets or liabilities, and are placed in the proper position.

SAP AG
Setting Up the Balance Sheet Section of a Financial
Statement Version
Balance sheet
version XXXX
Level 1 ASSETS LIABILITIES
Subscribed
Level 2 capital Formation Fixed Current Equity Reserve
unpaid expenses assets assets funds
Level 3 Intangible Tangible Financial
assets assets assets
Machinery Down payment
Level 4 Real Technical and made for asset
estate assets equipment under constr.
Level 5 Acquisition Value
value adjustment
. . .
max. 10

A financial statement version consists of a maximum of ten hierarchy levels.
You allocate items to each level. The system forms a total/subtotal for each item which is then displayed when
the program is run.
Allocate texts to each item which are also displayed.
Allocate the accounts whose balance and account name are to be listed here in the lowest levels of the items.

SAP AG
Setting Up the Profit and Loss Section of a
Financial Statement Version
Annual profit before tax Annual profit before tax
Results of the Results of the
business transactions business transactions
Level 1 Level 1 Operating Financial Non-operat. Taxes Approp.of
result result profit net income
Level 2 Level 2 Sales Material Personnel
revenue expenses expenses
Level 3 Level 3 Revenue Sales
deductions
Profit / loss

SAP AG
Account Group Allocation According to Balance
G/L account G/L account G/L account
BANK1 BANK1 BANK1
113100 113101 113102
Balance Balance Balance
- 100 + 30 + 50
+ + - -
? ?
Credit at BANK1 Payables at BANK1
----------------------------- ------------------------------
Acct no. D C Acct no. D C
from / to from / to
113100 X 113100 X
113101 X 113101 X
113102 X 113102 X
Position varies based on Position varies based on
changing balance changing balance

You use account group allocation to determine in which cases the balance of this account group is to appear in this
financial statement item.

D C

X Only if the joint balance of all accounts listed under
this item is a debit balance does it appear here.

X Only if the joint balance of all accounts listed under
this item is a credit balance does it appear here.
The settings listed above are only appropriate for accounts with a fluctuating balance.
Example: Bank accounts.

X X This will always appear here irrespective of the balance
of the accounts.
Example: receivables accounts

SAP AG
Texts

Financial statement version XXXX Bal.sheet acc.to natl regs
Hierarchy level n
_________________________________________________________
nnnn1 Stocks
nnnn2 Receivables
nnnn3 Securities
nnnn4 Checks, Cash on hand . . .
Text
nnnn4 Checks, Cash on hand
Start of group
Checks, Cash on hand, Central bank and postal giro
accounts, other bank accounts
__
End of group Display total
__
. . .
Graduated total Display total

You can write additional texts for each item in a financial statement. You can write up to four lines of text at the
beginning and/or the end of the item.
A graduated total is tallied along with the control level processing. It can be called up from any point within the
financial statement structure.
You output the profit and loss part of the structure in the standard system using the graduated total functionality.

SAP AG
Group Evaluations
Chart of accts Chart of accts
specification specification
in the grp ch/ac. in the grp ch/ac.
G/L accts in the G/L accts in the
company code company code
Cht of accts
AAAA
Acct no. 175000
Group
acct no. 175000
CC CC
0001 0002
Chart of accts
BBBB
Group chart of
accounts
AAAA
Acct no. 150000
Group
acct no. 175000
CC
0003
Chart of accts
AAAA
Group chart of
accounts
AAAA
Acct no. 170000
Group
acct no. 175000
CC CC
0004 0005

If you want to combine multiple company codes (with different charts of accounts in some cases) under one
group view in your evaluations, you must follow these steps:
Define which group chart of accounts is the common one among the corresponding chart of accounts definitions.
For the charts of accounts involved, enter each G/L accounts group account number in the Group account
number field, which is found in the cross-company code section of the G/L account master records. This
creates a check to see if the account exists in the group chart of accounts.
For G/L accounts in the group chart of accounts, the contents of the group chart of accounts field should be
identical to the G/L account number (self-referencing).
In financial statement version you want to use for the group evaluation, specify that the group account number,
not the account number, is the criterion under which accounts are represented (combining various accounts from
various charts of accounts).

SAP AG
Grouping within the Company Code
Master record Master record Account allocation
Account 175000 Account 150000 Other assets
Taxes Taxes
Chart of accts AAAA Chart of accts BBBB
____________________ ______________________ Account no. D C
from / to
Group Group
account number 175000 account number 175000 175000 X
Financial statement version XXXX
Group account number
X Chart of accts ______

You can also set the balance sheet program so that all accounts are grouped under their joint
group account number when evaluating a company code individually. Here you also have to select a
financial statement version which references the group account number. This therefore has the
effect of a group term.
You use this type of grouping to examine a company code from a corporate group viewpoint.

SAP AG
Evaluations by Country Chart of Accounts
Chart of accts
specification
Operative ch/ac Operative ch/ac
AAAA AAAA
Country ch/ac
BBBB
Country ch/ac
CCCC
G/L account
in chart of accts
Acct no. 175000 Acct no. 175000
Description: nnn ... Description: nnn ...
Acct no. 150000
Description Description : xxx ...
Acct no. 170000
Description Description : zzz ...
G/L account
in comp.code
CC CC CC CC CC CC CC CC CC CC
0001 0001 0002 0002 0003 0003 0004 0004 0005 0005
AltAc. AltAc. AltAc.
150000 170000 170000

A country chart of accounts can be assigned to each company code in addition to the operative chart of accounts
(company code table). This gives you the capability to do evaluations from a country perspective.

You must also maintain the Alternate account number field in the company code section of the G/L account
master record. When this entry is made, the system checks whether the account exists in the alternate chart of
accounts.

In the balance sheet program, you can select whether the account numbers and names (descriptions) come from the
operative chart of accounts or from the country-specific one.
If no country chart of accounts is assigned to the company code, users can use the 'Alternate account number' field
for other purposes.

SAP AG
Planning
- generate SETs (per fin.stmt version)
- create PArameters changeable
- create Plan version } or
- create Plan version parameters enhanceable
- per fiscal year
Preparation
Planning periods

If you want planning values to be displayed in a balance sheet, you have to prepare the planning for each financial
statement version. In doing so, the system generates the required datasets on its own and at the same time creates
plan parameters, plan versions, and plan version parameters.
If you change a structure, you have to regenerate the sets.
You can create additional plan versions for a financial statement version. You also define the plan version and
plan version parameters.
Plan periods must be open for each fiscal year.

SAP AG
Entering Planned Values
Company code 0001
Fiscal year JJJJ
Version XXX
Financial stmt version XXXX
Maintain
Fin.stmt version XXXX Bal.sheet acc.to natl regs
Hierarchy level N
1 Assets
2 Liabilities
3 Profit and Loss
4 Accounts not allocated
Plan
Acct number Loc.Curr. Dist.Key
nnnn1 1000000 1
nnnn2 50000 1
nnnn3 3000000 1
. . . . . . . . .
Post

Planned values are entered using financial statement version and plan version number within this structure.
You can also plan at a higher level (all accounts for a financial statement item) or at the account level. In this case,
you may want to use a distribution key (possible entries help).

SAP AG
Plan Versions
RFBILA00
Fin.stmnt vers. AAAA
Plan version 001
Ist Plan Abw.
500 400 -100
Enter planned
values
X
Prepare using
financial statement
version AAAA
Account
100000
CC 0001
FY YYYY
Plan version 001
Acct no. Acct no. Actual Actual
values values
: :
100000 100000 500 500
110000 110000 -20 -20
120000 120000 -60 -60
130000 130000 40 40
Planned
values V001
400
100
- 150
- 50
V002

Enter a financial statement version in the evaluation (RFBILA00). This way you have the same
structure for the actual data and planned data. By specifying a plan version number, you
select a particular version of planned values for which the structure remains the same.

SAP AG
Balance Audit Trail (Accumulated)
Open item balance audit trail
(open item-managed accounts)
Documents Documents
Master Master
records records
RFKKET00 RFKLET00
KK New dataset KL New dataset
RFKKBU10
D, K, S
RFKLBU10
D, K, S
RFKKBU00
D, K, S
RFHABU00
S
Old KK/KL Old KK/KL
dataset dataset
Historical balance audit trail
(general ledger)
Accumulated
extract
Accumulated
extract
Evaluation Evaluation
From the
document
file
From the
document
file

You organize the retention period of your documents in the SAP system according to your hardware
capability and your requirements. It may be that you have to reorganize your documents during the year.
You must then save the documents previously in the (accumulated) balance audit trail.
Document data and master data is always extracted, sorted and merged into a sequential dataset before document
reorganization takes place.
At the end of the year, this dataset contains the document volume for the year, sorted by account.
The accumulated balance audit trail is extracted from this.
If all the data you require is still in the system., you can access this data using the RFKKBU00 and RFHABU00
programs.

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Volume Problem / Optimizing Run Times
1st run: " one-time "
complete
selection
Work files
Company Company
code 1000 code 1000
Company Company
code 2000 code 2000
Company Company
code 3000 code 3000
1 1 2 2 3 3
2nd run:
RFKLET00
Old dataset
(Company code 1000
Period 01)
New dataset
(Company code 1000
Period 01 + 02)
Documents Documents
Master Master
records records
Period: 02
RFKLET00
3rd run: 4th run:
- SORT
- Merge

If you are working with very large data volumes, it is advisable to only run the program for the complete dataset in
the system one time. This will set the data up into previously defined work files (per company code, for example).
Then you can generate your balance audit trail per company code with much shorter run times.

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Country-Specific Balance Audit Trail
G/L account
Account
number 123 123
Alternate 6789 6789
account
number
Dataset from cumulative
balance audit trail
. . .
Account no. 123 123
Document 1 500
Document 2 8.000
Document 3 700
Account no. 124 124
. . .
- Replace account no. 123 123
with alternate account number 6789 6789
- Sort
. . .
Account no. 6789
Document 1 500
Document 2 8.000
Document 3 700
Account no. 6790
. . .
Reporting acc.
to local
company codes
requirements
A
B

The 'Alternate account number' field in the company code section of the G/L account master record can be used to
ensure that you generate the balance audit trail according to company code-specific definitions (national
regulations on balance sheet reporting, for example).

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OUTPUT TAX
GL account GL account
>
GL Account = Tax Account
OUTPUT TAX
<
INPUT TAX
:
Tax category <
:
can only be posted
to automatically
OUTPUT TAX
:
Tax category >
:
can only be posted
to automatically X
allowed
tax codes
A0
A1
A2
:
T
a
x

t
y
p
e

A
T
a
x

t
y
p
e

V V0
V1
V2
:

The tax account assignment items determined automatically during document entry must refer to GL accounts
which are flagged as a tax account (<, >).
In addition, you can define as many other GL accounts as tax accounts as you require.
You can exempt each tax account from being posted to manually.

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Manual Tax Posting
Document display: Tax data Document display: Tax data
General ledger Amount Base Cd %
IMPORT TAX 300 3,000 U1 10.000
IMPORT SALES/PURCHASES TAX
:
Tax category <
:
can only be posted
to automatically
Acct: IMPORT SLS/PURCH.TAX
Debit posting / 40
Amount 300
Base amount 3,000
Tax code U1

Account assignments to a tax account require you to enter the tax base amount
(* = automatic determination).
The tax data determined in this way is considered in the tax return.

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Non-Deductible Input Tax
Vendor
Expense
1,040
VST
60
Vendor
1,100
Expense
VST
NAV
Tax code N1
Input tax VST 6 %
Non-deduct.input tax NVV 4 %
can be allocated (NVV) can be allocated (NVV) cannot be allocated (NVV) cannot be allocated (NVV)
Tax code
Input tax
Non-deduct.input tax
Example: 10 % input tax, of which 40 % is non-deductible
N2
VST 6 %
NAV 4 %
1,100
1,000
60
40

Companies which are not or are only partly authorized to deduct input tax must set up tax codes for the transaction
keys NVV or NAV.
NVV = can be allocated.
The non-deductible input tax value is allocated to the expense.
NAV = cannot be allocated.
The non-deductible input tax value is allocated to a special expense account.
The incoming posting via NVV or NAV is to be marked with asterisks for the acquisition tax.

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Tax Return
RFUMSV00
RFASLM00
D
CH
I
GB

You must create a tax return regularly for the tax authorities.
There are country-specific programs available in the system for doing this.

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Customer line item Customer line item
EU Single European Market
Customers Customers
X1 = delivery of goods
X2 = service
VAT VAT
registration number registration number
for the company code
for the customer

Transfer of the reg.no.
into the document
EC sales list
Tax codes Tax codes
RFASLMOO
Vendors Vendors
Tax code Tax code
Automatic posting Automatic posting
Y1 = acquisition tax
Acquisition tax Acquisition tax
100 100
RFUMSV00
Tax return

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D
Sales/purch.tax Sales/purch.tax
advance return advance return
Tax Return and Postings
DB DB
CH
I
GB
Form Form
data data
Batch Batch
input input
Print Print
form form
Post tax Post tax
payable payable
List List
RFUMSV00
Input tax Output tax Tax payable
100 250 100 250

You must create a tax return regularly for the tax authorities.
There are country-specific programs available in the system for doing this.

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Summary Closing Procedures For
Financial Accounting
You have learned how to define manual accrual/deferral
postings.
You have learned which accounts you should valuate /
analyze before the balance sheet run.
You now know how to prepare the business areas if you
use the business area balance sheet and profit and loss.
You can use the flexible reporting functions and are in a
position to create your own financial statement version.
You know when and how to generate an account balance
audit trail.
You know how to create the advance return for tax on
sales/purchases.

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Chapter Closing Procedures for the
Reclassification
Creating a periodic extract
Realtime update or rollup

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Active cons. types Active cons. types
Company cons.
Business area cons.
o Profit center cons.
l FI-LC
m EC-MC
m RF-KONS
Actual data Actual data
m Realtime update
m Rollup
l Periodic extract
Plan data Plan data
l Rollup
m Periodic extract
Group: Currency: Fiscal year variant:
Consolidation system Consolidation system
Ledger Version File format
Details
Rollup

The procedure of data transfer from the FI-GL or FI-SL (Special Purpose Ledger) components into the
Consolidation component of the parent company can be defined in the Preparations for Consolidation
Implementation Guide in the parent or subsidiary system.
The data type (IDOC, PC, Unix) must be specified for all procedures except for realtime update. Since FI-GL and
FI-LC versions do not need to be identical, a relationship must be defined between the two.
The settings apply for all company codes/companies in the sender system . All company codes (in the case of data
extract) or companies (in the case of realtime update) are assigned to the standard consolidation processing ledgers
in the background.
If data transfer is flagged as relevant for both company and business area consolidation, two parallel data streams
will be created; either during realtime update or in the form of two separate extract files.

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Additional account
assignments:
Partner
Transaction type
Acquisition year
Account
Company code
Business area
Fiscal year
Periodic extract with
summarization according to:
Company
FS item
Partner
Transaction type
Acquisition year
Consolidation
functions
Consolidation
Post
document
Consolidation Consolidation
staging ledger staging ledger
General General
ledger ledger
database database
Financial
statement
version
Data extract Data extract
+

Information generated in Financial Accounting by the balance sheet program (RFBILA00) can be duplicated as
data in Consolidation.
In order for this to happen, the Financial Accounting extract is triggered when the balance sheet/income statement
is created (switch: Extract to FI-LC). The layout of the data extract corresponds with the output list on the
screen.
The link between general ledger accounts and consolidation items is created in a financial statement version, whose
items correspond with the consolidation items.
The transfer of periodic extracts enables individual financial statement data to be transmitted across system
boundaries.
The consolidation staging ledger is managed in the sending system.
Data transfer is controlled in Consolidation using the data transfer monitor.

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Financial Statement Version for Consolidation
List of financial statement versions
FS version version description
XXXX corporate balance sheet

Definition of the statement layout Definition of the statement layout
Statement layout XXXX Corp. balance sheet
Hierarchy level 1
_________________________________________________________
0010000000 ASSETS
0020000000 LIABILITIES AND EQUITY
0030000000 Profit and Loss
0040000000 Accounts not assigned
Level forward Text Acct.
Maint.language D
Group account no.
Chart of accounts XXXX

In order to transfer data via periodic extract from Financial Accounting into Consolidation, it is necessary to use a
financial statement version whose FS items correspond to the consolidation items (e.g., Assets: 0010000000).
In the financial statement version, define numeric item numbers using leading zeroes.
Number assignments are made manually.
The SAP standard delivery system includes a financial statement version for the group (INT) which corresponds to
the example above.
The corporate parent determines the FS chart of accounts; this is maintained in Customizing.

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Account
Company code
Business area
Fiscal year
Realtime update of:
Company
FS item
Partner
Transaction type
Acquisition year
Consolidation
functions
Consolidation
Post
document
General General
ledger ledger
database database
Sachkonto ________
KonzernktoNr. ________
G/L account _______
Group acct no._______

Realtime updates of Consolidation data or rollups (for example from a user-defined ledger in FI-SL) are
alternatives to the periodic creation of extracts. In these procedures, general ledger accounts are assigned to
consolidation items by means of the group account number entered in the general ledger account.
A corporate chart of accounts must exist, in which the account numbers correspond with the consolidation FS
items.
Parent and subsidiary share the same system and client.
The control of account group allocations may not be balance-related. Only in a later consolidation step is this
possible.

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Send Data to Consolidation
Fin.stmt.version
PC file
Unix file
Send data Send data
Fiscal year
Posting period
Version
Realtime update
Rollup
Extract
Group
Actual data
Generate financial statements Generate financial statements
* Data extract to Consolidation *
ASSETS
Machines
. . .
100,000
. . .
. . . Data transfer . . . Data transfer
. . . company code selected (if appl.)

The Send transaction is an alternative to transferring data during the RFBILA00 run (FI view). It performs the data
transfer to Consolidation according to the Customizing settings (that apply to periodic extracts and rollups).
When making the Extract settings, the system automatically triggers the generation of financial statements
(balance sheet and income statement) using the financial statement structure stored. You can also select the
company code(s). You can also achieve the same results by generating financial statements using the report switch
Extract to FI-LC.
In Customizing, you can define the location in the file system for storing the data extract for each internal trading
partner.
The Rollup setting triggers the corresponding rollup that has been defined.

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Carrying Forward via Cons. Staging Ledger
Field movement 1001
Transaction types
TTY C-Fwd Description
100 100 Opening
balance
120 100 Acquisition
Control Carryforward
Ledger Bal.sheet Field
account movement
09 1002
09 X 1001
Carryforward Bal.sheet
Receiver GLU1
Sender table(s) GLU1 GLU1
Reciever Sender Sender field Exit
RACCT GLU1 RACCT
RASSC GLU1 RASSC
RBUSA GLU1 RBUSA
RMVCT GLU1 RMVCT S01
...
Ledger Acct. TTy Balance
09 11000 100
FI-SL
carryforward
Ledger Acct. TTy Balance
09 11000 120 20,000
Old year carry forward New year

Besides carrying forward balances in Financial Accounting, when transferring data into Consolidation via periodic
extract, carrying forward of balances must be performed in the consolidation staging ledger as well.
Consolidation posts the transaction type, which is needed for generating spreadsheet-like presentations, such as
asset history sheets, changes in provisions worksheets, etc.
How transaction types are carried forward is defined in the Consolidation system; an example of this would be the
carrying forward of an acquisition from the previous year onto the opening balance of the current year.
To ensure that the Consolidation carryforward logic is also applied to the consolidation staging ledger, a field
movement must be defined. You can then assign the carry-forward field movement to the consolidation staging
ledger in Ledger Maintenance.
Since Release 3.0C the standard delivery includes the field movement codes 1001 and 1002; these are already
assigned to the consolidation staging ledger (ledger 09).
The carrying forward of balances is performed within the special purpose ledger.

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Summary: Closing Procedures for
As a sender of consolidation data, define the partner
company in the cross-company section of the sub-ledger
account master records for those accounts which
represent affiliated companies. You must also define a
reconciliation account in the company code section of
each subledger account master record.
You can carry out data transfers by periodic extract,
realtime update or rollup. When performing a periodic
extract (RFBILA00 or sending transaction), the system
transfers data into a group financial statement version
defined for this purpose. During realtime updates or
rollups, the system uses the group account number
defined in the GL account master record to assign GL
accounts to consolidation items.

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Chapter The Individual Financial Closing
Process - Integration

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Month-End Closing (Example)
Reconciliation
Carry out
closing
Documentation
FI
Post to old year
GR / IR clearing
Valuate for.curr.bal.sh.accts
For.curr.OI valuation
HR
Revaluations
Material settlement
CO
Internal orders-/Project-related tasks:
period. trnsf post./ surcharges/ project interest calc./ progress
determ./ results analysis / Settlement to CO receiver, to Asset
under con.(period.) or finished Asset(total), to G/L account
Product-/ Production-related tasks :
Release std cost est./ create inventory costing
period.trnsf.post./ surcharges/ variance determination
req.expense-related invoice if needed (and post in SD)
determin. WIP/ results analysis/ settlement
Cost center-related tasks:
period. trnsf.post./ distribution/ assessment/ indirect activity
accounting/ key figures transfer/ cost center variance/
splitting/ actual activity price calculation
Profitability-related tasks:
Periodic actual posting valuations/ external data transfer
distribution/ assessment/ trnsf. balance sheet items in PCA
Post imputed dep./ interest
commercial/tax depreciation
FI-AA
PP
Reconcil.
ledger list
Profitability
segment
adjust-
ment
Block old month
G/L accounts
Block old month
Accts Recv/Payable
FI
CO
Annual
tax on
sales/pur
report
Month-end clos.pgm.
Material
Old Month New month
Maint. GR/IR
clearing acct
Post to
reconcil.
ledger
CO
CO/PS
Bal.sheet / P+L
Key figures
IAS
CO Reporting
prepara-
tory
postings
Open new month
AcctsRec/Paybl/GL
CO
SD
monthly outward
goods movements
and invoices
Forward to
payroll
accounting
MM
Recurring
entries

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Summary Individual Financial Closing
Process Integration
Overviews have shown you the chronological sequence of
activities involved in generating a year-end closing, and a
sample month-end closing, in the integrated SAP system.
The sequence of activities goes from
- preparatory postings in the sub-ledgers and internal
accounting, to
- reconciliation, to
- carrying out the actual closing, and also
- documenting a closing in the various accounting
information systems.
Even if your firm has not implemented the full SAP system,
the activities and their sequence remain basically the same.
In these cases, you will be responsible for preparing and
exchanging the required data with other areas.

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Chapter Financial Calendar

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Scheduled Programs and Reports Scheduled Programs and Reports
An overview of the task schedule is often required if
tasks are scheduled in Financial Accounting.
05/15/1995 05/15/1995
Payment Payment
program program
Tasks Tasks Schedule Schedule
07/20/1995 07/20/1995
Dunning Dunning
program program
06/11/1995 06/11/1995
Financial Financial
statements statements

After you have scheduled tasks in Financial Accounting, it is often inconvenient to have to look at
each individual program run which you entered in order to find information on its scheduled runtime
and status.
Answers are often required for the following questions:
- Which payment program runs are scheduled for future months?
- What tasks in Financial Accounting are to be carried out, or were carried out in July and
August of this year?
An overview of the scheduled tasks shows them in relationship to each other, and answers questions
such as:
- In what order are the payment and dunning programs scheduled for this month?

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Status of Scheduled Programs and Reports Status of Scheduled Programs and Reports
It is also important to have an overview of the statuses It is also important to have an overview of the statuses
for the scheduled program runs, including the date on for the scheduled program runs, including the date on
which their status changed. which their status changed.
Payment Payment
program program
Tasks Tasks
Dunning Dunning
program program
Financial Financial
Entered Entered Started Started Finished Finished Released Released
Current date: 06/05/96 Current date: 06/05/96
05/15/96 05/29/96 05/29/96 05/30/96
06/01/96 06/15/96
04/01/96 04/14/96 04/16/96 04/17/96

When looking at the programs or reports which have already been entered, you often need to know the
status of the program run and the date on which the status changed.
Without the financial calendar, it is only possible to view this information in the batch input session
log for the programs or reports you entered.

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Financial Calendar - Monthly Overview Financial Calendar - Monthly Overview
The financial calendar gives you a month-by-month The financial calendar gives you a month-by-month
overview of Financial Accounting tasks scheduled in overview of Financial Accounting tasks scheduled in
the system. the system.
June 1995 June 1995
MON TUE WED THUR FRI SAT SUN
Payment Payment
Payment
Dunning
notice
Dunning
notice
Dunning
notice
Fin.
stmts
Payment

The financial calendar gives you a quick overview of scheduled or completed Financial Accounting
tasks for a certain month or year.
The financial calendar can be used to generate a graphic showing scheduled Financial Accounting
tasks, for example dunning runs, payment runs, automatic and manual closing operations.
The following are available:
- A list of all tasks which must be performed on a certain date or within a certain time period
- A list of all deadlines relating to a certain task
- Direct access to the detail screen for the relevant task (payment run, etc.)
The advantage of this function is that you can allocate each task to be performed manually or
automatically in the various areas of Financial Accounting to certain deadlines, and show this in a
graphic form in the financial calendar. This enables you to centrally monitor and plan these tasks as
they arise.

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Workflow Integration Workflow Integration
The financial calendar allows you to assign and monitor tasks The financial calendar allows you to assign and monitor tasks
using workflows. using workflows.
June 1996 June 1996 July 1996 July 1996 August 1996 August 1996
Mo Mo Di Di Mi Mi Do Do Fr Fr Sa Sa So So Mo Mo Di Di Mi Mi Do Do Fr Fr Sa Sa So So Mo Mo Di Di Mi Mi Do Do Fr Fr Sa Sa So So
Message:
Mrs Smith, please
could you confirm
the results of the
payment programs
for June...
Paket

You can use workflow functions to send messages to certain users at a pre-defined time.
By using workflow functions, the financial calendar enables you to allocate task messages which are
linked to the scheduled Financial Accounting tasks.
By including instructions, descriptions or sequences related to organization (using long text), you can
enhance the financial calendar so that it can be used as a general organizational tool. Messages which
are linked to scheduled tasks are sent with a time stamp on a certain day.
(These messages can only be sent to users on the same or lower levels in the personnel hierarchy. A
clerk cannot send a message (or task) to a head of department, for example.

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Scheduling
The first step in the procedure is to schedule tasks
and programs.
Financial
statements
Payments
Dunning
June 1995 June 1995
July 1995 July 1995
Mo Mo Di Di Mi Mi Do Do Fr Fr Sa Sa So So

You need to execute or schedule programs and reports as in the usual FI application environment
before you can see any tasks in the calendar.
The following need to be entered for each scheduled task:
- The variant used (for reports such as RFBILA00)
- The identification number for payment and dunning programs
- The text name for manual workflow tasks

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Defining Tasks Defining Tasks
The next step when generating a financial calendar
overview is to define a task.
A task is defined by allocating parameters to a
function.
TASK TASK
+
+
TECHNICAL NAME TECHNICAL NAME PARAMETERS PARAMETERS
Report name Report name: :
RFBILA00 RFBILA00
Dunning run Dunning run: :
F150 F150
Payment program: Payment program:
F110 F110
Workflow message: Workflow message:
TS0007408 TS0007408
Report variant Report variant
Identification Identification
number number
Text name Text name

The next step is to create a task. This identifies the task which should be included in the calendar
overview.
As described above, you need to allocate a parameter to each task to show which report or program
run should be used.
The parameter type is dependent on the task category:
- For reports, the parameter is a report variant
- For the dunning and payment programs the parameter is an identification number
- For a workflow message or a manual workflow task the parameter is the text name
The combination of these parameters and report/program types provides the search criteria for
selecting the relevant task.

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Schedule
The third step in setting up the financial calendar is
to define the schedule.
The schedule contains the calendar type to be used
and also the allocated organizational unit.
SCHEDULE SCHEDULE
ORGANIZATIONAL UNIT (PD)
Work center Work center
Job Job
Organizational unit Organizational unit
Employee Employee
Position Position
User User
CALENDER TYPE
USA USA
Austria Austria
Factory calendar Factory calendar
Public holiday (USA) Public holiday (USA)
Public holiday (D) Public holiday (D)

The schedule is a requirement for using the financial calendar function.
The schedule identifies the calendar type to be used and the allocated organizational unit.
The calendar type defines the type of financial calendar to be displayed.
The organizational unit is an optional characteristic and a concept found in the component PD
(Personnel Planning and Development, formerly HR - Human Resource Management). The
organizational unit can be a work center, a job, an organizational unit, an employee, a position or a
user. It can also have dependent units. The schedule could contain the scheduled tasks for these
dependent units. The advantage of this is that if the schedule is allocated to an employee to whom
further employees are allocated, this first employee can include all the tasks in his/her financial
calendar which are contained in the schedules of his/her subordinates.
(The maintenance of organizational structures is discussed in the training courses and documentation
for the component PD - Personell Planning and Development in the SAP system).

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Task + Schedule Task + Schedule
You need to allocate the task(s) to the schedule so that this relationship is
clear for the financial calendar.
This is the final precondition which must be fulfilled before the overview
can be generated.
SCHEDULE SCHEDULE
TASK: TASK: RFBILA00 RFBILA00 TASK: TASK: Payments Payments TASK: TASK: Dunning Dunning
June 1995 June 1995 July 1995 July 1995 August 1995 August 1995

In order to call up a task overview, the financial calendar requires the relevant schedule and task(s).
You therefore need to define a relationship between the schedule and the task.

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Integration Integration
The function can be used for any report type. You only need to enter the
technical name and report variant.
June 1995 June 1995 July 1995 July 1995
FI
reports
CO
reports
MM
reports
SD
reports
August 1995 August 1995

The calendar function is designed mainly for activities in Financial Accounting. However, it is
possible to display a task in any SAP component for which a report has been run or scheduled.
To display scheduled reports using the financial calendar function, you simply need to:
- Schedule the report with a variant
- Enter the technical name of the report in the financial calendar
- Enter the variant name in the financial calendar

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Summary: Financial Calendar
This overview shows the relationships between the
elements of the financial calendar.
SCHEDULE SCHEDULE
RFBILA00 RFBILA00
Payments Payments
Dunning Dunning
Financial calendar Schedule
Organizational unit
Tasks Schedule activities
RFBILA00 RFBILA00
Variant Variant
Dunning Dunning
Identifier Identifier
Payment Payment
Identifier Identifier
Workflow message Workflow message
Text name Text name
Message Message
August 1995 August 1995
September 1995 September 1995

Activities must be scheduled before they can be displayed in the financial calendar. You need to
generate a task with an appropriate variant for each activity, define a schedule and assign the various
tasks to this.
The procedure used for creating and scheduling messages using workflow functions is different from
that for executing reports and programs.

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Chapter Production Startup

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Procedure
Master data
Transaction data
Master data
in current
system
Transaction
data in current
system
Individual reports
Standard report
Call transaction
Direct input
R/3 R/3
R/3 R/3

If you have not implemented any enterprise computing system as yet, then you need to enter the master
data and transaction data manually, that is using the online functions.
If you already have a computing system (mainframe, minicomputer or PC) and want to continue using
this data, carry out a data transfer.
To save yourself the effort of entering a large amount of master data manually, write a program in your
current system which makes the data available for R/3.
You define the requirements of the program according to the data you use and the information you
require.
There are SAP standard programs available to help you import your old data into R/3. Alternatively,
you can import the data directly into the database by means of call transaction or direct input.
Note Importing the data by means of call transaction or direct input is quicker in the
case of large datasets since the system does not carry out any checks. In comparison,
the batch input program is slower. The data is not written to the database straight
away but instead is firstly compared against the table entries.
You can also create these programs yourself to meet your specific requirements.

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Data Transfer Methods

It might be conceivable to enter old data manually into the R/3 System in the following situations:
Small amount of master data or transaction data,
New organizational structures concept which cannot be derived from the old data,
Extensive amendments with new, additional information which is not available in the old system.

It is possible to import data by means of diskettes or magnetic tapes in the following situations:
Different hardware platforms,
Physical distance without an electronic data interchange line.

For most projects it will be technically possible to make the data available in a file format as files
which can be processed using batch input programs in R/3.

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Data Transfer Process
Master and transaction data in the current system
Output and change program in batch input
format for
Transfer report
Batch input session log

In the output program which you are going to create, enter the data which you want to use in the R/3
system into a file to be processed further.

For the data to be read, you need to prepare the information in a format which can be read and checked
by the batch input program.

An online entry is simulated when processing the transfer program (session), that is key terms are
checked against the customizing entries. Records with missing or wrong key terms are rejected and
listed in an error log.

The system creates a session which can be processed after correcting
the customizing entries,
or the master data,
or the input data.

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Output and Change Program
Current Current
system system
R/3 R/3
Data in current system
Data in R/3 System
Country indicator ( D )
Currency ( DM )
Tax code ( 11 )
Term of payment ( 20 )
Account number ( 1600 )
= Country key DE
= Local currency DEM
= Account group DEBI
= Tax key A1
= Term of payment ZB01
= Account 160000

In the output and change program which you are going to create, there are generally a large number of
translations which you need to carry out.

In customizing, define a translation table for the key terms which differ from your current keys.

For key terms which are newly available in the R/3 System, create derivation rules for the translation
table.
Example: You do not have the term account group in your current system. This entry is,
however, important for the R/3 System since certain field controls are carried out
using the account group. You must find unique criteria which allow an allocation for the
account group CASH. This can be, for example, the account number within an
interval. All bank accounts in the legacy system are between 1100 and 1399 and are
therefore given the key term account group CASH with the indicator for account relevant
to cash flow.

SAP AG
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Scheduling Data Transfer
Programming the output program
1997
Transfer and integration test
Transfer of master data
Posting closed in current system
Transfer of open items
Reconciliation of closing balance
sheet with opening balance sheet
24 25
31

For scheduling the data transfer it is important that:
The transfer programs have been extensively tested (all old data can be processed)
The master data is current (transfer shortly before the productive start)
The data transfer sequence has been determined (for example, first of all the G/L accounts since
account numbers which must be available are defined for the customer and vendor accounts, assets
and material master data)
Enough time is allowed for checking that the data is complete and accurate

SAP AG
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Customizing (IMG) -> Financial Accounting -> Financial
Accounting Global Settings -> Delete transaction data
Delete transaction data
General selections
Company code 1000
Program control Before the production
Test run run, generate a log in
X Delete CO data a test run
Regenerate credit limits
Delete own matchcodes

SAP AG
R
Customizing (IMG) -> Financial Accounting -> General
Ledger Accounting -> G/L Accounts -> Master Data -> Delete
-> Delete G/L account
Delete master data
Deletion quantity selection: X Customers
X Vendors
X G/L accounts
Deletion depth: only general master data in chart of accts INT
X with general master data in company code 1000
Program control
Test run
X Note deletion flag
G/L account detail log
Customer detail log
Vendor detail log

SAP AG
R
Setting the Productive Indicator
Customizing (IMG) -> Financial Accounting -> Financial
Accounting Global Settings -> Company Code -> Set
company code to productive
Productive indicator for the company code
CC Company name City Productive
1000 IDES AG Frankfurt X
2000 IDES UK London
2100 IDES Portugal Lisbon X

SAP AG
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Summary: Production Setup
Data can be transferred either manually or automatically
from the legacy system, depending on the individual
circumstances. Usually a transfer program for master data
and transaction data is created. This adapts the structure
and content of old data to match the new system.
Before transferring old data you need to test the transfer
program and check the data.
You need to set up an organizational plan for the transfer
and reach an agreement with the departments involved.

SAP AG
Chapter Standardtexts and Forms

SAP AG
Forms
Form naming conventions
SAP Standard SAP Standard
Form Form
F150_DUNN_01 F150_DUNN_01
Y150_DUNN_01
or
Y150_1000_01
or
Z_MAHNBRIEF

Letter texts for correspondence with customers/vendors are delivered in the standard client. You can
copy these letters (forms) and adapt them to meet your company-specific requirements.

When assigning a name, you should note the convention of using an X, Y or Z as the first letter. You
can use the print program name ( 150_DUNN ) or define a new name.

Design a form which is used by all company codes so that the appearance is similar across the
corporate group. You define the company code-specific company data in standard texts. The name of
the standard text is defined in customizing for each company code.

If the company codes use letters formatted differently, you copy the SAP form into different forms
( Y150_CCD1000, Y150_CCD2000 ) and define the form name in customizing for that particular
company code.

Note: You can considerably reduce the amount of work involved by using a standard form and
company code-specific standard texts.

SAP AG
Forms
Header Header
Address Address
Info window Info window
Main window Main window
Footer Footer
Parts of the form
COMPANY LOGO
Recipient
Information
on text
Letter text and
line item list
Company data (bank details)

The letter consists of several windows which can be formatted differently for each page. For example,
you do not always need the window with the recipients address on the second page. You can delete it
there if required.

The order of the various windows and the size as regards length and width can be changed.

Note The names for the windows are predefined. Changes which you make are not converted
by the respective print programs.

SAP AG
BANKEN_1000
Forms
BANKEN_1000
Forms Forms
Name of standard text
BANKEN_1000
Contents of standard text
printed in form
Standard text Standard text
Bank details: bank 1: account number, bank number
bank 2: account number, bank number
Footer text
Signature
Sender
Header text

You define sender details for each company code in customizing. These are issued automatically
when printing forms. This sender data concerns the letter header (company name), the sender address
in the recipients address field, the greeting, closing and signature lines and possibly details regarding
management, entry in the register of companies and bank details.

If you use an existing company letter-head which already has the company data on, then you do not
need to maintain the company code-specific header, address and footer details.

SAP AG
Summary Standard Texts and Forms
The forms stored in the SAP delivery system can be used
as a model for your own forms, i.e. you can modify them
to meet your specific needs.
The SAPscript editor, which is used to create the forms, is
an integrated tool which is also used for the
Implementation Guide and programming in ABAP.
Which data is printed in the form is controlled by
specifications made in the print program.
The forms are printed after the parameters for the various
programs have been made.

SAP AG
Chapter Correspondence and Interest
Calculation

SAP AG
Overviews
in response to requests in response to requests
periodically periodically
Interest calc. Interest calc.
Interest on arrears Interest on arrears
Acct balance interest calculation Acct balance interest calculation
Bal.confirmation Bal.confirmation
Correspondence Correspondence

SAP AG
B./exch.
Automatic Correspondence
Print programs
Docs Docs
Line Line
items items
Accts Accts
Standard Standard
form form
texts texts
Corres-
pondence
requests
Payment notification Payment notification
Account statement Account statement
Bill/exch.charges statement Bill/exch.charges statement
Individual letter/form letter Individual letter/form letter
Internal document Internal document
Document extract Document extract
Trigger
Incoming
payments
Account
processing
Business Business
transactions transactions
Other Other
reasons reasons
Periodic Correspondence
Rules for Rules for
payment payment
notifications notifications
Periodic account statements Periodic account statements
Internal documents Internal documents
Maintain Maintain
Delete Delete

You can generate correspondents in different ways:
periodically,
according to requirements during the online session,
bill of exchange charges statements and the notification of failed payments are always triggered by
the corresponding programs,
in the case of payment differences, you can always define in customizing that automatic
correspondence is triggered.

SAP AG
Correspondence: Functional Overview
Individual
correspondence
requests
Payment notices with line items
Payment notices without line items
Account statement
Open item list
Bill of exchange charges statement
Internal document
Individual correspondence
Document extract (credit memo)

SAP AG
Correspondence: Functional Overview
Print correspondence requests
Correspondence
requests and
print for bulk data
Periodic account statements
Internal document
Maintain
correspondence
requests
Print view
Maintain text
Repeat print
Delete
Balance confirmation

SAP AG
From Correspondence Type To Form
Company code Correspondence type Program Form name
SAP Standard
SAP01 SAP01 Pyt not.w.line items Pyt not.w.line items RFKORD00 SAP01 SAP01 Y140_PAY_CONF_01 Y140_PAY_CONF_01
SAP02 SAP02 Pyt not.w/o line items Pyt not.w/o line items RFKORD00 SAP02 SAP02 Y140_PAY_CONF_01 Y140_PAY_CONF_01
SAP06 SAP06 Acct statement Acct statement RFKORD10 SAP06 SAP06 Y140_ACC_STAT_01 Y140_ACC_STAT_01
SAP08 SAP08 Open item list Open item list RFKORD10 SAP08 SAP08 Y140_ACC_STAT_01 Y140_ACC_STAT_01
SAP07 SAP07 B./exch.chrg stmnt. B./exch.chrg stmnt. RFKORD20 SAP07 SAP07 Y140_BILL_CHA_01 Y140_BILL_CHA_01
SAP09 SAP09 Internal document Internal document RFKORD30 SAP01 SAP01 Y140_INT_DOCU_01 Y140_INT_DOCU_01
SAP10 SAP10 Individual corresp. Individual corresp. RFKORD40 SAP10 SAP10 Y140_IND_TEXT_01 Y140_IND_TEXT_01
SAP11 SAP11 Doc.extract (cr.mem.) Doc.extract (cr.mem.) RFKORD50 SAP11 SAP11 Y140_DOCU_EXC_01 Y140_DOCU_EXC_01
SAP12 SAP12 Failed payment Failed payment RFKORD60 SAP12 SAP12 Y140_FAIL_PAY_01 Y140_FAIL_PAY_01
SAP13 SAP13 Customer statement Customer statement RFKORD11 SAP13 SAP13 Y140_CUS_STAT_02 Y140_CUS_STAT_02
SAP14 SAP14 Op.item list w.pyt adv. Op.item list w.pyt adv. RFKORD11 SAP14 SAP14 Y140_CUS_STAT_02 Y140_CUS_STAT_02
Variant ID

Note that when defining correspondence types the table is client-dependent.

If you work with SAPs standard correspondence, then you must check whether the program variants
meet your requirements and make any adjustments if necessary.

SAP AG
From Correspondence Type To Form
Company code Correspondence type Program Variant Form name
Example of enhancements
ZAO01 ZAO01 Pyt notice with line Pyt notice with line
items and indiv. text items and indiv. text
RFKORD00 ZAP01 ZAP01 IT IT F140_PAY_CONF_01 F140_PAY_CONF_01
ID
SAP01 SAP01 Pyt notice with line Pyt notice with line
items and indiv.printer alloc. items and indiv.printer alloc.
RFKORD00 BK001 BK001 __ __ F140_PAY_CONF_01 F140_PAY_CONF_01 0001 0001

SAP AG
Base parameters
Types
Report allocation
Forms (also bal.conf.)
Sender specifications (also bal.conf.)
Call options
Payment notice
Payment notice control
Report variants
Account statements
Control
Report variants
Bill of exch. charges stmnt
:
Document extract
Report variants
Balance confirmations
Reply addresses
Selection criteria
Report variants

SAP AG
Individual Text
Preparing the correspondence type (using SAP10 as an example)
Cor.Typ Cor.Typ Indiv. Text Indiv. Text Report Report Text proposal Text proposal Form name Form name
SAP10 SAP10 x x RFKORD40 RFKORD40 F140_IND_TEXT F140_IND_TEXT F140_IND_TEXT F140_IND_TEXT
1. 1.
Maintaining the standard text F140_IND_Text
Text name Text name F140_IND_TEXT F140_IND_TEXT
Text ID Text ID FIKO FIKO
Language Language E E
2. 2.

SAP AG
Individual Text
Maintaining the form F140_IND_Text
/: INCLUDE & RF140-TDNAME& /: INCLUDE & RF140-TDNAME& OBJECT OBJECT BKORM BKORM
ID ID FIKO FIKO
LANUAGE LANUAGE &RF140-TDSPRAS& &RF140-TDSPRAS&
3. 3.
Entering data, maintaining and printing the correspondence
/: /: During the printing process, variable RF140-TDNAME contains the During the printing process, variable RF140-TDNAME contains the
name of the text proposal that belongs to that particular name of the text proposal that belongs to that particular
correspondence type (standard text nnn). correspondence type (standard text nnn).
Variable RF140-TDSPRAS contains the entry or output language of the Variable RF140-TDSPRAS contains the entry or output language of the
text. text.
4. 4.

SAP AG
Balance Confirmations
Prepare balance confirmations for customers
Specify selection criteria
Prepare balance confirmations for vendors
Define reply addresses

You define the addresses to which the customers and vendors are to send their replies. Since this
address is often different from the company code address, it is important that you make this
specification.

In addition to the existing selection criteria, you can also make selections from a list.

You can create a series of selection variants for both programs.

SAP AG
____ ____ _ _
Balance Confirmation
Company code Correspondence type Report Form name
Customers
Saldenbesttigung Deb. Saldenbesttigung Deb. SAPF130D SAPF130D ____ ____ _ _ F130_CONFIRM_01 F130_CONFIRM_01
Variant ID
- Check list - Check list LI LI F130_LIST_01 F130_LIST_01
- Error list - Error list ER ER F130_ERROR_01 F130_ERROR_01
- Results list - Results list RE RE F130_RESULT_01 F130_RESULT_01
Vendors
Vendor balance confirmation Vendor balance confirmation SAPF130K SAPF130K F130_CONFIRM_01 F130_CONFIRM_01
- Check list - Check list F130_LIST_01 F130_LIST_01
- Error list - Error list F130_ERROR_01 F130_ERROR_01
- Results list - Results list F130_RESULT_01 F130_RESULT_01
LI LI
ER ER
RE RE

The allocation of forms for the balance confirmation is also carried out via Base parameters -> Define
form names.

SAP AG
Accounts receivable Accounts receivable
Accounts payable Accounts payable
Interest on arrears
Interest calculated on items Interest calculated on items
paid after their due date paid after their due date
Accounts receivable Accounts receivable
Accounts payable Accounts payable
Account balance interest
Interest calculated on the Interest calculated on the
value of the account balance value of the account balance

SAP AG
General interest terms
Interest on arrears
Account balance interest
Special G/L transactions
Time-dependent terms
Reference interest rates
Definition
Values
Forms
Postings
Calc.of interest on arrears (customers and vendors)
Account balance interest calculation (G/L accounts)
Account balance interest calc.(accounts receivable)
Account balance interest calc.(accounts payable)
Transaction types
Interest calculation types Interest calculation types

SAP AG
Posting Interest
Application 0004 = G/L account interest scale
1000 Interest earned 1000 Interest earned
1010 Val.dt in past 1010 Val.dt in past Minus deb. int. Minus deb. int.
1020 Val.dt in past 1020 Val.dt in past Debit Debit
1030 Settlement 1030 Settlement Debit Debit
2000 Interest paid 2000 Interest paid
2010 Val.dt in past 2010 Val.dt in past Minus cr.int. Minus cr.int.
2020 Val.dt in past 2020 Val.dt in past Credit Credit
2030 Settlement 2030 Settlement Credit Credit
Business transactions
Business transaction Business transaction 1000 1000
Company code Company code + +
Interest indicator Interest indicator X1 X1
Business area Business area + +
Posting details
D 40 Acct sysmbol D 40 Acct sysmbol A A
C 50 Acct sysmbol C 50 Acct sysmbol B B
Differentiation options
Interest indicator Interest indicator
Business area Business area
Chart of accts Chart of accts INT INT
Act.symb. Act.symb. Currency Currency G/L account G/L account
A A + + ++++++ ++++++
B B + + Interest earned 1 Interest earned 1
B B USD USD Interest earned 2 Interest earned 2
Accounts
Doc. type xx

The applications are predefined in the SAP system
(for example, 0002 Calculation of interest on arrears
0004 G/L account interest scale).

The business transactions for the applications are already defined in the SAP system.

Define the document type for each application.

Allocate posting keys and account symbols to each business transaction.

Define the corresponding G/L account for each account symbol.

SAP AG
Summary Correspondence and
The SAP system contains a wide range of forms which
you can use to carry out various evaluations of your
customers. Some of these correspondence types can be
run by calling up a program, others can be started from
the document processing screens.
You can use the text processing menu in SAPscript to
alter the layout and texts of the letters to suit your
business standards.

SAP AG
Appendix 1: Consolidation Overview
Consolidation Entries
Information System
Versions
Overview
Master Data
Preparations for Consolidation
Individual Financial Statements
Standardizing Entries

SAP AG
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Konzernabschlu
Consolidated financial statements
The merged individual financial statements of legally independent
organizations (subsidiaries) which are economically dominated by a
superior entity (parent company).
Theory of a single legal entity
"The consolidated financial statements present the assets, financial
situation and income of a consolidating group as those of a single
organization. (297 Clause 3 Section 1 German Commercial Code)

SAP AG
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Legal Foundations
7th EC Directive (of 5/16/1983)
Objective: The standardization of regulations governing consolidated
accounting, in order that all consolidated financial statements within
the EC are comparable.
German Accounting and Reporting Law (of 12/19/1985)
Incorporation of the 7th EC Directive into German law.
3rd book of the HGB (German Commercial Code),
290-315
Implementation of the 7th EC Directive, among others
Disclosure Law

SAP AG
R
Implications of the Single Entity Theory
A double entry of investment and debt relationships in
the consolidated financial statements is prevented
All business transactions taking place between group
companies are treated as goods and service
transactions within a single enterprise
The consolidated statements are balanced and
valuated according to the laws governing the parent
company

Consolidation of investments ( 301 German Commercial Code)
Elimination of intercompany payables and receivables ( 303 GCC)
Elimination of intercompany profit and loss ( 304 Clause 1 GCC)
Elimination of intercompany profit and loss in inventory/transferred assets
Elimination of intercompany revenue and expense ( 305 GCC)
Reclassification of items from the individual balance sheet in the consolidated balance sheet
Uniform valuation ( 308 Clauses 1 + 2 Section 1 GCC)

SAP AG
R
Disclosure Obligations and Exemptions
Legal form
Common control (290 Clause 1 GCC)
Control principle ( 290 Clause 2 GCC)
Principle of worldwide financial statements
Size-related exemptions
Consolidated financial statements allowing exemption

Legal form: In principle, all corporations (for example AG, KGaA, GmbH in Germany)
Common control: The parent company coordinates the operating policies of the subsidiaries and
other basic issues concerning their management.
Control principle: The parent has either:
- the majority of the voting rights in a subsidiary
- the power to appoint the majority of the members in the administrative, governing or
supervisory body of the subsidiary
- the power to exercise a dominating influence over the subsidiary
Worldwide financial statements: Included in the consolidated financial statements are:
- the domestic parent company
- all subsidiaries, regardless of the location of their registered office
Consolidated financial statements providing exemption: In a multi-level group, each parent company
usually obliged to prepare consolidated financial statements (for their subgroup) including all
subsidiaries.
- Contradiction of the single entity theory
- Limited information value
- A parent is not obliged to prepare consolidated financial statements if it and all its subsidiaries
are included in higher-level consolidated financial statements.

SAP AG
Reports Reports
Data input Data input
Forms Forms PC data entry PC data entry SAP R/2, R/3 SAP R/2, R/3
Consolidation Functionality
FI-LC FI-LC
totals, totals,
documents documents
Versions Versions
Simulations Simulations
Restatements Restatements
Excel Excel
Gewinn- und Verlustrechnung
1
2
3
C A
Umsatz
B
50
FI-LC FI-LC
Interactive Interactive
Reports Reports
FI-LC Totals FI-LC Totals
reports reports
Report Writer Report Writer
Report Painter Report Painter
Companies Companies Subgroups Subgroups FS items FS items
Transfer to EIS Transfer to EIS
Consolidation steps Consolidation steps
n n Standardizing entries Standardizing entries
n n Currency translation Currency translation
n n Intercompany elimination Intercompany elimination
n n IC profit/loss in inventory IC profit/loss in inventory
n n IC profit/loss in tr'd assets IC profit/loss in tr'd assets
n n Consolid. of investments Consolid. of investments
n n Reclassification Reclassification

You can customize your variants and valuation options in the Implementation Guide (IMG).
The functions can be run individually or bundled together.
All activities are started and monitored on the screen.
Posting entries are automatically generated for all consolidation steps.
Group accounting is performed in accordance with the document principle, and features the carrying forward of
balances.

SAP AG
Main Features of Consolidation
n Flexible consolidated entities
n Integration with the SAP systems which generate individual
financial statements
n Online entry of non-integrated financial statements
n Remote PC data entry
n High level of functionality in automated consolidation
n Flexible adjustments to meet international requirements
n Group accounting with carry-forward of balances, using the
document principle
n Comprehensive standard reporting
n Simple definition of additional standard reports
n Ability to process large volumes of data
n Version concept for simulations and planning data

SAP AG
Integration of FI-LC Legal Consolidation
Executive
Information
System
FI-LC
Consolid-
ation
Remote
processing
of business
transact.
EIS EIS
Company Company
consolidation consolidation
Business Business
area consol. area consol.
Open Open
usage usage
FI-GL FI-GL
General General
Ledger Ledger
FI-AA FI-AA
Asset Asset
SD SD
Sales & Sales &
Distrib. Distrib.
CO - PCA CO - PCA
Profit Profit
Center Center
CO - PA CO - PA
Profitability Profitability
Analysis Analysis
MM MM
Materials Materials
Mgmt Mgmt
Operational SAP Systems

FI-LC is integrated in two ways with other SAP modules:
Applications which handle day-to-day business transactions transfer data to FI-LC in summarized form.
Consolidation Reporting supports a drilldown back to these applications.
Consolidated data is transferred to the EIS (Executive Information System), which collects highly summarized
data from all enterprise areas (including Logistics and Human Resources) for one company or the group as a
whole.
FI-LC supports the consolidation of any consolidation unit, providing the required financial data is supplied.
Through the integration of SAP applications, data can be made available for the consolidation of companies
(legally independent units) and business areas (subdivisions of companies for the purpose of external segment
reporting).
EC-MC Management Consolidation will also support the consolidation of cost accounting units (profit center,
cost center, profitability segment).

SAP AG
FI-LC Implementation: Scenarios
FI FI
productive productive
FI - LC FI - LC
at later date at later date
R/3
+ +
FI / CO FI / CO
AM / MM AM / MM
FI - LC FI - LC
only only
R/3
+ +
FI - LC FI - LC
R/3 R/3
RF / RA RF / RA
RM / RK RM / RK
R/2 R/2
Release 2.2 / 3.0 Release 4.0
INTEGRATED CONSOLIDATION
STAND-ALONE APPROACH
SATELLITE APPROACH
LC AS PREDECESSOR TO MC
FI - LC FI - LC EC - MC EC - MC
SD SD
MM MM
PP PP
QA QA
PM PM
HR HR
FI FI
CO CO
AM AM
PS PS
WF WF
IS IS
R/3 R/3

Consolidation module implemented after or in parallel with a productive FI installation
This is the most common scenario for Consolidation implementation. During preparation for consolidation, the
chart of accounts often needs to be enhanced, and organizational adjustments may be required for intercompany
posting.
Consolidation module as the first/only SAP application
The focus in this case is on data input from external sources (remote PC data entry and flexible PC data-upload).
You will also need to learn about the administration of the R/3 system, the database and the operating system.
Consolidation module as an R/3 satellite of an operative R/2 system
A small application which affects few users could be used as an introduction to the world of R/3. An interface
with periodic data transfer and similar preparation for consolidation functions is available in the R/2 system.
FI-LC prior to Management Consolidation (EC-MC)
As of release 4.0, FI-LC functionality will be contained in the EC-MC module, and automatic migration to
enhanced data structures will be available. You can start a project with FI-LC and later enhance it by adding
consolidation dimensions.

R
Chapter Master Data
Companies
Subgroups
Financial statement items

SAP AG
Companies
SAP SAP
SAP SAP
SAP SAP
Parent
Sales
SAP SAP
Production
SAP SAP
Base unit for data input and consolidation
Attributes Attributes
Global parameters: address, country, language
Control parameters: currency translation
validation checks
data transfer methods
SAP SAP
SAP SAP SAP SAP

A company master record must be created for each organization that is included in the consolidated financial
statements.
Some company attributes are time- or version-dependent (such as the tax rate for deferred income tax, and the
currency translation method). Therefore, when entering company data you must specify the fiscal year and period,
a version and a ledger, also.
You can print a list of the master records with all company-related data

SAP AG
R
Subgroups
reporting entity
any combination of companies
balance sheet, income stmt.
quarterly
USD
balance sheet, income stmt.
semi-annual
DEM
Plastics
income stmt.
monthly
CHF
80% 60%
40%
Total Europe
100%
60% 50% 75%

A subgroup is a combination of multiple companies for reporting purposes.
Definition:
- any combination of subgroups (time- and version-related)
- each subgroup can use a different group currency
- different consolidation frequencies can be chosen
- variable consolidation steps for each company
Technique:
- Elimination according to company pair relationships
- subgroup comparison reports across columns
Multi-hierarchy groups can portray individual hierarchy levels with subgroups (see Step Consolidation).

SAP AG
Classification of FS items
INDIVIDUAL STATEMENT INDIVIDUAL STATEMENT
Acct.no. Acct.no. Name of account Name of account Item no. Item no.
: :
0100 0100 Plants Plants 10320100 10320100
0200 0200 Undeveloped land Undeveloped land 10320100 10320100
0300 0300 Office buildings Office buildings 10320100 10320100
: :
Chart of accounts A
INDIVIDUAL STATEMENT INDIVIDUAL STATEMENT
Acct.no. Acct.no. Name of account Name of account Item no. Item no.
: :
4000 4000 Land Land 10320100 10320100
5000 5000 Buildings Buildings 10320100 10320100
: :
Chart of accounts B
CONSOLIDATED STATEMENT CONSOLIDATED STATEMENT
Item no. Item no. Name of account Name of account
: :
10320000 10320000 Fixed assets Fixed assets
10320100 10320100 Real estate Real estate
10320200 10320200 Plant equipment Plant equipment
10320300 10320300 Other fixed assets Other fixed assets
: :
standardized
FS chart of
accounts
FI-LC FI-LC
FI FI

Different charts of accounts may exist within one group due to local statutory accounting requirements in
individual countries or the acquisition of new companies.
If different charts of accounts exist within a group, all of the accounts must be assigned to a standard financial
statement (FS) chart of accounts for the group.
You can consolidate at the operational account level by selecting an FS chart of accounts that is identical to the
operational chart of accounts.

SAP AG
Attributes of Financial Statement Items
Item number Item number
10 characters, alphanumeric 10 characters, alphanumeric
Item type Item type
asset item asset item
liability/equity item liability/equity item
income statement item income statement item
other other
Item category Item category
value item value item
totals item (range or set) totals item (range or set)
ratio ratio
Indicators Indicators
consolidation-only item consolidation-only item
partial breakdown partial breakdown
contra item contra item
additional accounts assignments additional accounts assignments

Financial statement (FS) items are the main posting units in the Consolidation system.
The following options are available for creating a FS chart of accounts:
implementation of SAPs standard FS chart of accounts, which can be post-edited manually,
adoption of the structure of the FS chart of accounts while automatically changing the item numbers,
creation of a new, custom FS chart of accounts (requires a high degree of customizing time!),
automatic copying of FS items from the FI module,
- copy from chart of accounts,
- copy from financial statement version.
Additional account assignments minimize the number of items that need to be defined.
You can enter values or quantities on FS items.
You can use validation checks for validating the values in (statistical) sub-level item ranges against those in main-
level ranges.

SAP AG
FS items and their Additional Assignments
Transaction types Transaction types
fixed assets fixed assets
reserves for special depreciation reserves for special depreciation
provisions provisions
appropriations, stockholders' equity appropriations, stockholders' equity
Trading partners Trading partners
loans to affiliated companies loans to affiliated companies
receivables from/payables to affiliated companies receivables from/payables to affiliated companies
investments, ownerships in affiliated companies investments, ownerships in affiliated companies
revenue from/expenses for affiliated companies revenue from/expenses for affiliated companies
Currencies Currencies
receivables from/payables to affiliated companies receivables from/payables to affiliated companies
loans to affiliated companies loans to affiliated companies
Years of acquisition Years of acquisition
fixed assets (for historical currency translation) fixed assets (for historical currency translation)

The system supports both individual additional account assignments as well as business-economical combinations
of additional account assignments.
The additional account assignments are made for each FS item during the configuration of the system.
The assignments affect data entry, validation checking, posting and reporting.
FI-LC also supports three user-definable additional fields not listed above.

R
Chapter Preparation for Consolidation
Data integration
Organisational structures
Parallel valuation in individual financial statements
Trading partners
Balance reconciliation

SAP AG
non-SAP
Chart/accts CCC
Organization
SAP
Client 001
Company
code 0003
Chart/accts BBB
Company
code 0001
Company
code 0002
Chart/accts AAA
FS chart of accts
Company
C0001
Company
C0002
Company
C0003
Company
C0004
Group
FI FI
. . . . . .
FI-LC FI-LC

Organizational Units in FI:
The client is at the top level of the hierarchy in the SAP system. The definitions you make here apply to all
underlying levels.
G/L accounts are defined at the chart of accounts level. Each client can accommodate any number of charts of
accounts.
Company codes are units which contain a complete self-contained set of accounts and generate a balance sheet
and income statement at the end of the fiscal year. Exactly one chart of accounts is assigned to each company
code.
Several or all company codes can employ an identical chart of accounts.
Organizational Units in FI-LC:
Companies are individual business and legal entities which are included in the consolidated financial statements.
A company code in the FI system corresponds to a company in the FI-LC system. The company codes may
reside in various R/3 systems.
The Consolidation system can also include companies that generate their individual financial statements on non-
SAP systems.
All of the companies in the Consolidation system use a common financial statement (FS) chart of accounts.

SAP AG
Trading Partners in Consolidation
Company
GER
Company
USA
Customer SAP-USA
Trading partner USA USA
Vendor SAP-GER
Trading partner GER GER
Outgoing invoice
Partner
Customer USA USA 1000
SAP-USA
Revenue USA USA 1000-
Incoming invoice
Partner
Vendor GER GER 1000-
SAP-DEU
Expense GER GER 1000
FS item FS item Company Company Partner Partner
Receivables Receivables GER GER USA USA 1000 1000
- - GER GER USA USA 1000- 1000-
Payables Payables USA USA GER GER 1000- 1000-
- - USA USA GER GER 1000 1000
Revenue Revenue GER GER USA USA 1000- 1000-
O OO O O OO O GER GER USA USA 1000 1000
Expense Expense USA USA GER GER 1000 1000
O OO O O OO O USA USA GER GER 1000- 1000-
Consolidation
- - Elimination of interco. Elimination of interco.
payables and receivables payables and receivables
O OO O O OO O Elimination of interco. Elimination of interco.
revenue and expense revenue and expense

The allocation of indicators to group-internal posting transactions is a particularly important form of data
preparation for individual financial statements Even in small groups, the chart of accounts would often become
overloaded if company-specific accounts were used.
Instead, the SAP system puts the sender-receiver relationship on the document level in Financial Accounting,
and manages the balances in Consolidation with the additional account assignment trading partner.
Customers/vendors that are affiliated companies are marked as such by an appropriate trading partner ID in their
master records.
In open item posting, the trading partner assignment is read from the master record and duplicated in all the
document lines. It is therefore available for the elimination of intercompany payables and receivables/revenue and
expense in Consolidation.
Alternatively, you can also set the trading partner manually.
As it is duplicated in the document, the trading partner must be unique. However, document types for which
several trading partner assignments are possible can be defined for business transactions not relevant to
consolidation.

SAP AG
R
Active cons. types Active cons. types
E Company cons.
E Business area cons.
E Profit center cons.
FI-LC
O EC-MC
O RF-KONS
Actual data Actual data
O Realtime update
O Rollup
Periodic extract
Plan data Plan data
Rollup
O Periodic extract
Group: Currency: Fiscal year variant:
Consolidation system Consolidation system
Ledger Version File formation
Details
Rollup

In the Preparations for Consolidation Implementation Guide of the parent or subsidiary system, the procedure for
the transfer of data from the FI-GL or FI-SL (Special Purpose Ledger) components into the Consolidation
component of the parent company can be defined. A check is run in the parent system to see if the selected
procedure agrees with the specifications in the company master record.
For all procedures apart from realtime update, the file type (IDOC, PC, Unix) must be specified. Since FI-GL and
FI-LC versions do not need to be identical, a relationship must be defined between the two.
The settings apply for all company codes/companies in the sender system. In the background, all company codes
(in the case of data extract) or companies (in the case of realtime update) are assigned to the standard consolidation
processing ledgers.
If the transfer is flagged as relevant for company and business area consolidation, two parallel data streams will be
created; either during realtime update or as two separate extract files.
Data from profit center accounting can only be transferred to the forthcoming EC-CS Management Consolidation
module.

SAP AG
R
Chapter Individual Financial Statement
Overview of data transfer
Data transfer monitor
Status management
Data transfer from Financial Accounting
Remote entry with MS-Access
Flexible upload
Central entry with data entry forms
Validation check

SAP AG
Overview of Data Input
FI-LC FI-LC
Legal Consolidation Legal Consolidation
Forms Forms
Manual entry
mail
disk/
network
FI-AA FI-AA CO CO SD SD MM MM
FI-LC FI-LC
FI-GL FI-GL
FI-SL FI-SL
disk/
network
Step
consoli-
dation
Extract Realtime
update
Rollup
R/3 integration
SAP PC entry
ext.
G/L
HOST HOST
R/2
non-SAP system

Data input
Realtime updates by other SAP modules in the same system
Periodic data extracts from FI-GL
Rollups from a (user-defined) FI-SL ledger
Periodic data extracts from another FI-LC system (Step Consolidation)
Data extracts and rollups can be transferred from other SAP systems via ALE without any problems.
Flexible uploads of data extracts generated by non-SAP systems
Data output
Data transfers to a predefined aspect of the EIS database
SAP reports available in the Consolidation system
Interactive accessing with Microsoft Excel or downloading of a data extract

SAP AG
Data Transfer Monitor
Sender system Sender system
Subsidiary Subsidiary 2 2
Parent Parent Receiver system Receiver system
IDOC IDOC
S00002 S00002
No data posted No data posted
User: Smith User: Smith
Date: 15/03/95 Date: 15/03/95
Program: RGCMBU00 Program: RGCMBU00
Co.ID Co.ID
PC
upload
I
n
f
o
e
x
e
c
u
t
e
execute
Company Company Name Method Status
P00001 Parent co. Realtime update Data
S00001 Subsidiary 1 R/3 extract (IDOC) Data
S00002 Subsidiary 2 R/3 extract (PC) Error
S00003 Subsidiary 3 Manual entry No data
S00004 Subsidiary 4 R/3 extract (direct) Data
Subgroup SG1 Version 100 Year / Period 1995 / 003 Year / Period 1995 / 003
Data Data
input input

The data input procedure is displayed for all companies of a subgroup.
FI-LC supports realtime update, rollup from FI-SL, data extract from FI-GL, data extract from R/2 RF, data extract
from Step Consolidation, upload from the PC data entry program or a user-defined record layout, and manual data
input.
Some procedures have variants (e.g. realtime update, IDOC, PC file, unix file).
Status of data input
Three values are possible: data (has been posted successfully), error (transfer had been started but no data
available), and no data (transfer has not been started yet).
Detail information by company, e.g. number of posted database records or possible reasons for status error.
Starting data input out of the data transfer monitor
By company
For several companies grouped by data input procedure or sender system

SAP AG
Status Management
Subgroup SWW [DEM] Subgroup SWW [DEM]
Germany France USA
DEM FRF / PC upload USD / extract
Data entry Data entry
Calculate retained earnings Calculate retained earnings
Standardizing entries Standardizing entries
Validate local currency Validate local currency
Lock data entry Lock data entry
Consolidation entries Consolidation entries
Validate subgroup Validate subgroup
Lock subgroup Lock subgroup
Translate local currency
Validate group currency
Lock currency translation

Data entry
You can start data entry and standardizing entries immediately upon the creation of your companies. Standardizing
entries are possible until data entry is blocked.
Companies which use realtime update from FI-GL, rollup, or periodic extract from R/2 as their data entry method,
should start the program for calculating retained earnings. This program is displayed and controlled in status
management.
Currency translation
Currency translation is automatically opened when data entry is blocked.
Display of currency translation on the detail screen. Provisional translation is not displayed.
There is no need to perform translation for companies whose local currency is the same as the group currency, and
which do not use the proportional consolidation method.

SAP AG
Additional account
assignments:
Partner
Transaction type
Acquisition years
Account
Company code
Business area
Fiscal year
Individual financial statements (FI)
Periodic extract with
summarization according to:
Company
Item
Partner
Transaction type
Acquisition year
Consolidation
functions
Consolidation
Post
document
staging ledger staging ledger
General General
ledger ledger
database database
Financial
statement
version
Data extract Data extract
+

Information generated in Financial Accounting by the balance sheet program (RFBILA00) should be duplicated as
closing data in Consolidation.
In order for this to happen, the Financial Accounting extract is triggered when the balance sheet/income statement
is created (switch: Extract to FI-LC). The layout of the data extract corresponds with the output list on the
screen.
The link between general ledger accounts and consolidation items is created by a financial statement version whose
items correspond with the consolidation items.
FI-AA transaction types are assigned to FI-LC transaction types in Customizing and summarized correspondingly
in the extract.
Periodic extract transfer allows individual financial statement data to be transmitted across system boundaries.
The consolidation staging ledger is managed in the sending system.
Data transfer is controlled in Consolidation using the data transfer monitor.
At year-end, consolidation data, in addition to FI data, must be carried forward.

SAP AG
Account
Company code
Business area
Fiscal year
Individual financial statement (FI)
Realtime update of:
Company
Item
Partner
Transaction type
Acquisition year
Consolidation
functions
Consolidation
Post
document
General General
ledger ledger
database database
G/L account _______
Group acct no._______

Realtime update of Consolidation data or rollup (for example from a user-defined ledger in FI-SL) are alternatives
to the periodic creation of extracts. In these procedures, general ledger accounts are assigned to consolidation
items by means of the group account number entered in the general ledger account.
A corporate chart of accounts must exist whose account numbers correspond with the consolidation items.
Realtime update can only be used if Financial Accounting (parent or subsidiary) and Consolidation are in the same
system and client.
There should be no balance-dependent control of account groups. Contra items will be handled in a later step in
the Consolidation system.

SAP AG
Enhanced Integration of FI-LC Additional Account Assignments
Accounting document
- Functional area
- Customer country
- Business area
- Cost center...
Customer
master record
(Customer
country)
Sustitution
rules
(Functional
area)
Consolidated
income statement:
cost of sales
accounting
Consolidated
income statement
according to
business areas
External data
entry via
MS-Access
4 options of variable
additional account
assignments
Consolidated
sales revenue
by customer
regions
Periodic
rollup
Realtime
update
FI CO
Consolidation
totals database
R/3 R/3
FI FI
CO CO
AM AM
PS PS
WF WF
IS IS
MM MM
HR HR
SD SD
PP PP
QM QM
PM PM

4 variable additional account assignments, including transaction type, are available in Consolidation. As part of
integration, these can also be provided on realtime update from Accounting, as of Release 3.0D. This was
previously only possible using a periodic rollup.
New functional area and customer country information is available in accounting documents (as of 3.0E), in
addition to business area, cost center and general ledger account.
Using the functional area, you can assign business transactions according to cost-of-sales accounting principles,
and also prepare a corresponding consolidated income statement.
A business area consolidation procedure is available with Release 3.0. A prerequisite for this is that balance
sheet items have been assigned to the combination company/business area in FI, thereby enabling postings to be
broken down into these business areas. If you only require (a) a breakdown by business area for the income
statement and (b) consolidation results as totals, and not per business area, you can use the (simpler) company
consolidation procedure. The operational business area in FI restricted to income statement items is
duplicated in an additional account assignment and posted simultaneously during the elimination of intercompany
revenue and expense.
In Customizing, you can generally specify the items (= corporate accounts) for which various information will be
duplicated in the additional fields.

SAP AG
Translation Translation Reporting Reporting Transfer Transfer
MS Access MS Access
MS Access MS Access
database database
R/3 R/3
Parent Parent
I
m
p
o
r
t
I
m
p
o
r
t
Master data Master data Data entry Data entry Validation Validation
MS Excel MS Excel
Non-SAP Non-SAP
system system
E
x
p
o
r
t
E
x
p
o
r
t
Remote Data Entry with MS Access

As an enhancement to the R/3 system, the Consolidation component contains a user-friendly and powerful PC data
entry program for subsidiaries which do not have an SAP system. The program is based on the relational database
system MS Access, and includes the following functionality:
- Manual data entry and interface with MS Excel
- Validation
- Currency translation
- Reporting
Master data (for example financial statement items) and control parameters (for example data entry forms,
validation rules) are provided by the group parent and imported into the local subsidiary system.
Financial data is periodically exported and transferred to the group parent. Data changed at the group head office
can be transferred back to the subsidiary.
Data is currently transferred via PC uploads and downloads. RFC (Remote Function Call) is currently planned as
an additional option.
Integration with MS Excel
- Definition of the interface in MS Access
- Activities are started from within MS Access
- Standard MS Excel functions are used

SAP AG
SAP Data Entry Forms
Item Curr.yr. Prev.yr.
1030 Assets
1031 Real estate 8,0
1032 Equipment 3,0
1033 Other assets 1,0
1034 Asst u.constr. 30,0
* Assets ( ) (42,0)
Balance sheet
Position TTy Curr.yr. Prev.yr.
1031 Real estate ( ) (16,300)
Open.bal. 100 12,100
Acquisitions 120 5,000
Retirements 140 800
Asset history sheet
l Multilingual
l Comparison with previous year
l Flexible modification
l Data entry audit trail
D e f i n i t i o n
Lines Lines Columns Columns Texts Texts

Manual entry of individual financial statement data is supported
Multi-language capability
Flexibility in changing data entry forms
Balance check and summation levels supported during data entry
Data entry audit trail supported
Data entry is subject to status control

SAP AG
Validation Checks
Validation rules Validation rules
Group Group Categ. Categ. Rule Rule
A A P P 1000 = 2000 1000 = 2000
F F Total Assets unequal Total Liab./Equity Total Assets unequal Total Liab./Equity
A A P P 1041>(V)1041 + '% 20' 1041>(V)1041 + '% 20'
W W Inventory: curr. year > 20% of prev. year Inventory: curr. year > 20% of prev. year
Inventory
Status Management Warning
Pr. year
Current
year
liabilities
& equity
assets assets
Balance sheet
Error

Callup points / objects to be checked
local valuation (local currency, company)
corporate valuation (group currency, company)
consolidated values (group currency, subgroup)
User-specific definition
Validation categories
item formulas
totals items
comparison of constants
previous year comparison
breakdown total checking
changes in investment table comparison
changes in investee equity table comparison

R
Chapter Standardizing Entries
Document principle
Document types
Validation

SAP AG
P
a
r
e
n
t
S
u
b
s
i
d
i
a
r
y
+ =
+
=
? Global
adjustments
Cross-
company No inspection by
group auditor
=
INDIVIDUAL EVALUATION INDIVIDUAL EVALUATION
Inspection + report by auditor Inspection + report by auditor
Indiv.fin.stmt
data for the
company
+
Central
standardizing
entries
Summarized
financial
statements
Local
valuation
Indiv.fin.
statement
Decentralized
standardizing
entries and
reclassifications
Corporate valuation
Indiv. fin. statement
according to group
valuation guidelines
Cons.
entries
Consolid.
financial
statement
Inspection
by auditor
Audited Corporate Valuation of Subsidiary Statements

FI-LC saves the central postings relating to a company separately as standardizing entries.
Financial reporting data and central standardizing entries can be evaluated separately in reporting.

SAP AG
Central Standarizing Entries
Consolidation - Posting Consolidation - Posting
DOCTYP DOCTYP
Co.ID Co.ID
SUBGRP SUBGRP
TEXT TEXT
AP AP
S00001 S00001
ITEMNO ITEMNO TTY TTY PARTNER PARTNER AMOUNT AMOUNT
10320100 10320100
30710100 30710100
50.000+ 50.000+
50.000- 50.000-
Standardizing entry Standardizing entry
Diff.declin.bal./straight line depr. Diff.declin.bal./straight line depr.

Function for manually entering central standardizing and consolidation entries
Standardizing entries are valid in all subgroups which include the company posted to.
Pairs of consolidation entries are only valid in those subgroups which include both companies and use the
purchase or proportional method of consolidation.
Subgroup-dependent consolidation entries are valid for one subgroup only.
Account assignment by FS item number and, if necessary, transaction type, trading partner and additional field
Account determination for automatic posting (adjustments to retained earnings, provisions for deferred taxes)
Reference and reversal function
Classification of entries using document types:
simple analysis by the user (document evaluation, interactive reporting)
differentiation according to business functions
mass reversal function

SAP AG
R
Chapter Currency Translation
Translation methods
Translation keys
Analysis of translation differences

SAP AG
Common Currency Translation Methods
FS item FS item Pure current Pure current Modified curr. Modified curr. Temporal Temporal
rate method rate method rate method rate method method method
l l Assets Assets
n n Fixed assets Fixed assets S S S S S S S/D S/D H H H H H H
n n Investments Investments S S S S S S S/D S/D H H H H H H
n n Inventory stock Inventory stock S S S S S S S S H H S S S S
n n Other assets Other assets S S S S S S S S S S S S S S
l l Liabilities Liabilities
n n Stockholders equity Stockholders equity S S H H S S S S H H S S S S
n n Retained earnings Retained earnings S S S S S S S S S S S S S S
n n Other liabilities Other liabilities S S S S S S S S S S S S S S
l l Income statement Income statement
n n Revenue & expenses Revenue & expenses S S D D D D D D D D D D D D
n n Consumptn invent.stcks Consumptn invent.stcks S S D D D D D D H H D D D D
n n Depreciation Depreciation S S D D D D D D H H D D H H
n n Appropriation of net inc. Appropriation of net inc. S S S S S S S S S S S S S S

SAP AG
Local Group Diff.
Assets H = 3.0 S = 2.0
Buildings 500 1500 500
Machinery 500 1500 500
Inventory S = 2.0 S = 2.0
Raw matrl 500 1000 0
Audit trail by item
C
u
r
r
e
n
c
y
C
u
r
r
e
n
c
y
USD CHF
Sets
Inventory
Assets
1995
1996
Year
Analysis of translation difference
Translation set Translation set
Inventory Inventory Assets Assets
Exchange rates Exchange rates
Curr. Curr.
-rate -rate
Historical Historical
1995

You can define any common currency translation method for your FS chart of accounts: temporal method, current-
rate method and so on.
You can select a currency translation method for each
- company
- period
- version
Currency translation differences can be posted with or without an effect on net income.
Rounding differences can be handled.
Multi-dimensional analysis of currency translation differences is supported in reporting.
Translation differences (for example in fixed assets using the current-rate method) can be separately displayed.

R
Chapter Consolidation Entries
Intercompany elimination
Elimination of intercompany profit/loss in inventory
Elimination of intercompany profit/loss in transferred
assets
Consolidation of investments

SAP AG
Elimination of
loans
Elimination of
interest income
Intercompany Eliminations
Elimination sets
Elimination of
interco. sales
. . .
ITEM G2 G3 TW
RCBL 230 115
PYBL 200- 110-
30 5
Exchange
rate 2.0
20 10
Currency Other
difference difference
CoID PART GC DIF
G1 G2 500 500- 0
G1 G3 120 100- 20
G2 G3 230 200- 30
Difference
Pickup
Handling of differences
Elimination of
interco.pay/rec.
G2 G3 230 200- 30
Balance reconciliation

There are three prerequisites for intercompany eliminations:
You should post elimination entries at company pair level. Individual financial statement data must be entered
with reference to a trading partner.
You need to create freely-definable elimination sets in the system. In these sets, you specify which items will
be eliminated against each other, for example payables and receivables.
You should define elimination rules.
Differences arising from intercompany eliminations can be separated into currency differences and other
differences, for example posting differences.
Elimination can be simplified by using one-sided data entry.
Automatic reclassification during proportional consolidation.

SAP AG
2560 ? 2560 ?
What to do What to do
with difference with difference? ?
Company C1
(Currency USD)
Causes of Elimination Differences
Company C2
(Currency FRF)
Receivables 1 1500 SFR
Exch.rate = 0.6
900 USD
Payables 1 1500 SFR
Exch.rate = 0.3
4500 FRF Translation differences Translation differences
Receivables 2 2000 USD
Goods under way (different posting date) Goods under way (different posting date)
Value adjustment to
receivables 2 400 USD
Rec. SFR 1500 USD 900
Rec. USD 1600 USD 1600
USD 2500
Payables 1200 SFR 3600 FRF
3600 FRF
Translation into group currency
Payables = 1440 DEM
Exch.rate
= 0.4
Receivables = 4000 DEM
Exch.rate
= 1.6
Reversal 300 SFR
Exch.rate = 3.0
900 FRF Invoice not (fully) recognized Invoice not (fully) recognized
Value adjustment Value adjustment
? ?

Corporate policy usually specifies procedures for handling temporal posting differences, individual value
adjustments to receivables, and the partial recognition of payables.
The currency translation difference can be shown in FI-LC, as long as companies prepare their reports in
transaction currency as well as local currency. This takes place automatically when data is transferred from
Financial Accounting.

SAP AG
In the year of transfer: excess revenue (revenue - net book value)
acquisitions/retirements in asset history sheet
mid-year depreciation adjustments
In subsequent years: depreciation adjustment
external retirements, group-internal resale
Intercompany Profit/Loss in Transferred Assets
The retiring company
The elimination
The acquiring company
- Depreciation method
Open. Clos.
bal. Acq Ret. Trfr. bal.
------ 300 ------ ------ 300
- acquisition cost
- accum. depreciation
- depreciation method
- revenue (= acquisition amount at
the acquiring company)
Open. Clos.
bal. Acq Ret. Trfr. bal.
1000 ------ 200 ------ 800

The retiring company reports its acquisition costs, accumulated depreciation, revenues and depreciation methods.
The acquiring company reports the acquisition amount and the depreciation method.
The IC profit/loss is eliminated and computed as follows:
revenue - remaining book value = IC profit/loss
Elimination of the acquisition and retirement for the asset history sheet
Depreciation is adjusted for both companies

SAP AG
Consolidation of Investments
Rule - Share
purchase method 51 - 100 %
pooling of interest 90 - 100 %
proportional consolidation e.g. 50 %, 33 1/3 %
equity method 20 - 50 %
(book value, revaluation, proportion of equity method)
Methods
Functionality
80 90
50 70 60
- minority share of ownership
- hidden reserves
- goodwill
- one run per subgroup
Activities
- first consolidation - increase/reduction in capitalization
- subsequent consolidation - investment amortization
- step acquisition - divestiture
- transfer

The main purpose of consolidation if investments is to eliminate the intertwined equity of the groups
organizations. The parent companys investments in its subsidiaries are cleared against the subsidiarys
proportionate stockholders equity.
Various methods can be applied, depending on the parent companys level of influence in the subsidiary:
purchase method, proportional consolidation, equity method.
When processing fair value adjustments (hidden reserves), you determine if and how these are to be eliminated.
When the investment share in a company is less than 100%, minority shares of ownership are taken into
consideration.
Techniques:
Simultaneous consolidation of all companies of the subgroup
Calculation of shares according to the matrix multiplication procedure (multi-level calculation of group shares)
Step consolidation when the subgroup is defined hierarchically
Transactions:
automatic and manual entries
numerous extra reports (investments, equity, fair value adjustments, goodwill)

SAP AG
R
Chapter Information System
Overview of Reporting Options
Report Selection
Totals reports
Interactive Reporting
Journal Entry Reports
Reporting of Master/Financial/Control Data
Report Writer and Report Painter
Integration with EIS
Interactive Excel

SAP AG
Information System
R/3 R/3
FI-LC FI-LC
Database Database
Totals reports
Report Writer
Report Painter
Interactive
Reporting
Journal entry
reports
Reports of
l master data
l control paras
l financial data
Transfer
to
EIS
Inter-
active
Excel
1
2
3
C A
Erlse
B
50

FI-LC totals reports
A consolidation-specific "Report Writer" for evaluating the totals database
A comprehensive reporting system is delivered
Report Writer and Report Painter
User-friendly, powerful SAP standard tools for generating reports
Specific selections for processing the version and time dependencies of the subgroups
Interactive Reporting
Interactive analysis of the FI-LC totals database, including drilldowns to the consolidation documents and the
FI Financial Accounting module
Journal entry reports
Flexible journal entry evaluations including custom designs (display/totals variants), sorts and searches of
information, drilldowns, access to master data
Interactive Excel
Interactive R/3 database access and use of all MS EXCEL functions

SAP AG
Interactive
reporting
Reporting Options
Formulas List header Lines Columns Texts
Bundling
Individual call-up
Scaling
Multilingual

Report Report
program program
Department
Menues F keys or Spreadsheet
Windows Scrolling host printer Extract Wordprocessing
O u t p u t m e d i a
SAP Orgware SAP Orgware Accountant Accountant
Report Definition Report Definition

Numerous standard reports are supplied by SAP as Orgware. User departments can define further reports.
Elements in a report:
List header
Line layout
Column layout
- Values: values from the database or formulas
- Texts
You can call up reports individually or as a bundle (several reports).
You can request a report in various languages.
You have the option of scaling (Thou., Mill. and so on).
Output
screen (ad hoc information)
printer
data carrier (data passed on to higher-level group)
PC (inclusion in text, visual formatting)
Large volumes of data can be handled by separating data selection and evaluation.

SAP AG
Interactive Reports (1)
Balance Sheet
Fixed assets 20
Curr. assets 30
* ASSETS 50
Equity 40
Liabilities 10
* EQY/LIAB. 50
Income Stmt.
Revenue 60
Expense 40
Taxes 5
* ANP 15
Ratios
CASHFLOW
EQY_RATIO
.
.
.
Company Company
ownership ownership
Subitems / Subitems /
comparisons comparisons
Changes local/ Changes local/
corp./cons. value corp./cons. value
Switch Switch
valuation valuation
MENUES FUNCT KEYS WINDOWS
system-operator interaction
D e t a i l d i s p l a y

Predefined primary displays
Choice of items, quantities, ratios
User interaction with the system by positioning the cursor, using the function keys and mouse
Hierarchy and business graphics
Interface to the individual financial statement data in FI

SAP AG
Interactive Reports (2)
Company
ownership
Subitems /
comparisons
Changes fr. local/
corp./consd.value
Change in
valuation
FI account
balances
FI journal
entries
FI entire
document
Scaling
Individual
entries
Entire
document
Miscellaneous
Reports
Balance sheet
diagram
Subgroup
Company
master record
Chart of value changes
companies
Year
C01 C02 C03
Owner equity item
90
91
92
Corporate structure diagram

SAP AG
Balance sheet value changes: local - corporate - consolidated
FS item Local Stdg. Corp. IC IC elim. C/I Consd
val. entries val. elim. Inv.,TA value
Fixed assets 100 5 105 - 15- 25- 65
Tangible assets 60 5 65 - 15- 5 55
Intangible assets 40 - 40 - - 30- 10
Current assets 80 10- 70 15- 10- - 45
Inventory 50 - 50 - 10- - 40
Receivables 30 10- 20 15- - - 5
Total 180 5- 175 15- 25- 25- 110
FI-LC FI-LC
Report
Writer
Report
Painter
Report Writer and Painter for Consolidation Data

The Report Writer is a powerful tool for creating reports. It has been a component of the SAP system for a long
time and is used within several applications (e.g. FI-SL, CO-OM).
It is more easy now to report consolidation data with the Report Writer. A special data selection takes care of the
version and time dependency of subgroups and of the FI-LC concept of different posting levels.
Special group reports, which use the same criterion in lines as well as columns, must have additional fields for
such a criterion at their disposal (e.g., the transaction type in multi-line asset history sheets; or the FS item for
aged receivables/payables). The standard delivery system includes the corresponding fields.
To make the work of creating reports easier, SAP has developed the Report Painter which provides an interface
between the user and the Report Writer. The Report Painter can be learned quickly and can be used by users who
have little or no knowledge of Report Writer concepts, such as sets.
The SAP standard system includes several Report Writer and Report Painter reports for consolidation data. They
are stored in library 4LC and can be imported from client 000 into your client.

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Income statement Income statement
1
2
3
C A
Revenue
B
50
Spain 4% Spain 4%
Switzerland 21% Switzerland 21%
France France
10% 10%
Germany
15%
USA 50% USA 50%
Excel Excel
R/3 R/3
FI-LC FI-LC
R/3 R/3
Active
link
Automatic
update
Changes
Interactive Excel - Reporting with MS Excel

The functions are available as add-ins to MS Excel.
Activities are started from MS Excel.
An active data link is provided via RFC (Remote Function Call). RFC makes direct communication with R/3
application function modules possible..
RFC allows you to directly access data, and also supports authorization checks.

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The Principles Behind Interactive Excel
Version: 001- Version: 001-
actual value actual value
Balance sheet
Year: 1994
Period: 12
Column layout
Line layout
Value
matrix
/ Diff. FS item
Header
data
totals database totals database
Group: SWW
Selection of
individual
values from
list fields
Vector
transfer
Active access
to values in
R/3
Microsoft Excel Microsoft Excel
Control tables Control tables
Line layouts Line layouts
FI-LC / R/3 FI-LC / R/3
Column layouts Column layouts
Standard
Excel
Version:001- Actl.

You generate a spreadsheet step by step, using the functions mentioned earlier.
As soon as you have run FI-LC data selection, you can immediately see R/3 value changes in the spreadsheet.
If parameters (for example version or year) change, values and diagrams are automatically updated via the active
link.
Advantage: The layout only needs to be defined once and is then always filled with updated data.
The snapshot function allows you to save the spreadsheet without the active link.

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Chapter Versions
The concept of versions
Version concept - an example from currency
translation

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production production
Simulation Analysis / Version Concept
simulation simulation
version N version N
plan plan
Queries: effects of valuation options
simulation using different exchange rates / financial data
consolidation of investments
elimination of intercompany profit and loss
elimination of intracompany sales of merchandise
elimination of intercompany payables/receivables
currency translation / differences
standardizing entries / reclassifications (corporate valuation)
Copy indiv.
fin. stmt. data
Enter
plan statement
Enter indiv.
fin. stmt. data

The use of multiple versions provides you with the following simulation options:
the effects of valuation options
the effects of different exchange rates
the effects of different consolidated entities (restatement)
comparison of different reported financial data (e.g., plan/actual)
Special versions for the financial data and the methods for each of the consolidation steps are assigned to a
consolidation version.
You can create new data (local data, for instance) by copying an existing version.

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Version Concept - A Currency Translation Example
Individual statement Individual statement Exchange rates Exchange rates
Consolidated statements Consolidated statements
Actual/local
REV REV 100 100
EXP EXP 80 80
NETINC NETINC 20 20
Plan/local
REV REV 150 150
EXP EXP 120 120
NETINC NETINC 30 30
Actual
USD
1.5
Plan
USD
1.8
Actual data - Act.rates
Version 001
REV REV 150 150
EXP EXP 120 120
NETINC NETINC 30 30
Actual data - Plan rates
Version 002
REV REV 180 180
EXP EXP 144 144
NETINC NETINC 36 36
Plan data - Plan rates
Version 003
REV REV 270 270
EXP EXP 216 216
NETINC NETINC 54 54

The version concept can be applied to
alternative individual FS data
alternative exchange rates
any combination of the above alternatives

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Appendix 2 SD and Financial Accounting
Integration

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Transferring Data from SD
Invoice
Sales organ.: 0001
Distrib. channel: 01
Division: 01
Accounting document
100.-
100.-
Value: 100.-
Company code: 0001
Customer
Sales revenue

The system transfers billing data from invoices, credit memos and debit memos to Financial
Accounting and posts it to the proper accounts.
Prior to creating the posting document, the following billing data can be changed:
billing date
pricing
account determination
output determination
After the data has been transferred to Financial Accounting, only the output determination can be
modified.

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Data Transfer
Invoice
Invoice
Posting
block
Accounting
Accounting
Release

Basically accounting data is transferred automatically to Financial Accounting.
You can set a posting block on particular invoices. The corresponding accounting document is
created only after the invoice is released.
When customizing your system, you can define a posting block for each type of invoice.

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Reference Numbers / Allocation Numbers
Sales order
Sales order number
Customer purchase order number
Reference number
Allocation number
Delivery
Delivery number
External deliver number
Invoice
Invoice number
Allocation number
Reference number
Accounting document (FI)
Reference number
Customer line item
Allocation number

The reference number and allocation number in an accounting document can be assigned
automatically with numbers from SD objects.
For example, the customer purchase order number can be transferred to the invoice and then passed
on as the reference number to Financial Accounting.
Under the copying control for invoices in customizing, you can define what numbers are transferred
as reference numbers and as allocation numbers.
A - Customer purchase order number
B - Sales order number
C - Delivery number
D - External delivery number
E - Invoice number

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Account Assignment Criteria in the Invoice
Invoice
Chart of accounts
Sales organization
Acct assgnmnt group
Acct assgnmnt group
Account key Calculation procedure
Price 100.- ERL
Discount 10.- ERS
: : :
Account key
ERL = Sales revenue
ERS = Sales deduction
: :
Company code
Payers master record
Material master record
Assignment
Account
determination
key
in standard
system
Account

In the standard system, you can make account determination based on
the chart of accounts,
A chart of accounts is a classification scheme for all accounts in accounting. Several company codes
can use the same chart of accounts.
the sales organization,
the account assignment group of the customer,
The account assignment group enables you to combine customers for account assignment purposes.
the account assignment group of the material, and
This group enables you to combine materials for purposes of account assignment.
the account key.
The account key allows you to combine condition types for account assignment needs.

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Sales Revenue Account Determination
Records: condition type KOFI
No valid record exists
Valid record exists
Access sequence: KOFI
1. Sales organization chart/accounts Group Group, account key
customer material
2. Sales organization chart/accounts Group Account key
customer
3. Sales organization chart/accounts Group Account key
material
4. Sales organization chart/accounts Account key
5 Sales organization chart/accounts
Invoice
Item 10 10
Price 1000.-USD
Deduct 10 % 100.-USD
Sales
deduction
100
Account
Sales deduction Sales deduction
KOFI00 acct determination
Condition type KOFI
Access sequence: KOFI

You can set up posting to sales revenue accounts according to various criteria.
In some instances these criteria are irrelevant.
You can differentiate account determination by using the access sequence.

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Summary SD and FI Integration
SD and Financial Accounting are integrated so that billing
data from invoices, credit memos and debit memos is
transferred to Financial Accounting.

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Appendix 3: Overview of Credit Management
Introduction to credit management
Composition of total liabilites
Decentralized organization - centralized organization
Credit limit per customer or group of customers
Credit limit for new customers
Centralized data and data per credit control area
Disputed items
Timing of credit checks

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Introduction
Vendor Vendor
A
GOODS / SERVICES
CASH
Vendor Vendor
B
Customer B Customer B
GOODS / SERVICES
CASH

In order to minimize the credit risk in goods delivered and services rendered, credit management has
been integrated into the SAP system as a separate function alongside Financial Accounting and
Sales/Distribution. This makes it possible to use the credit management functionality to determine the
credit policy for each of your customers and to ensure that this policy is enforced in each individual
business transaction.
The automatic credit control function and the blocks it makes on business transactions are linked to
sales and shipping processing. From a workstation the credit control clerk can access all information
he/she requires to monitor and control critical business transactions at the push of a button.
Note on the online credit management documentation:
R/3 system online help: FI Financial Accounting - Accounts Receivable - Credit Management
R/3 system online help: SD Sales and Distribution - Credit Management
The Implementation Guide contains information on credit management in the following chapters:
IMG: Financial Accounting
IMG: Sales and Distribution.

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Receivables
Composition of Total Liabilities
TOTAL
LIABILITIES
Tilia Inc.
Special liabilities
Open billing
document value
Open
delivery value
Open
order value
+/-
+
+
+
Exceeded Exceeded
CREDIT LIMIT Tilia Inc.

Open order value:
Value of the order items that have not yet been delivered.
The open order value is calculated on the basis of confirmed quantities (confirmed quantities * cost of
credit = open value of an order). An order that is blocked due to credit review does not receive any
confirmed quantities. In addition, it does not increase the open order value as long as it is blocked.
Open delivery value:
Value of delivery items that have not yet been billed.
Open billing document value:
Value of billing document items that have not yet been entered into the accounts.
Receivables from sales are added to the total liabilities unless they are flagged as disputed items.
Receivables from special G/L transactions (e.g. down payments, guarantees) that are flagged as
relevant to the credit limit check are passed on as special liabilities into the total liabilities.
The payer is the decisive factor in updating these values.

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Local Organization - Central Organization
CCA 1: EUROPE
CO.CD.: Germany
EURO EURO
DEM DEM
CCA 1: ASIA
CO.CD. : JAPAN
USD USD
JEN JEN
CO.CD. : UK
GBP GBP
CO.CD. : KOREA
USD USD
Sales org. 1
Sales org. 3
Sales org. 2
Sales org. 4

A credit control area is an organizational unit that assigns and monitors customer credit limits. A
credit control area may comprise one or more company codes.
Local credit monitoring involves a system in which each credit control area has only one company
code assigned to it.
Central credit monitoring on the other hand is a system in which a credit control area is assigned more
than one company code.
A single currency is defined for each credit control area.
If a credit control area contains any company codes whose local currency differs from that of the
credit control area, the receivables are translated into the currency of the credit control area.
In the same way, all open order, delivery and billing document values are translated into the credit
control area currency as well.

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Credit Limit Per Customer / Group of Customers
CUSTOMER: West Inc.
CREDIT ACCOUNT: West Inc.
LIMIT: 200,000
A Limit per customer
CUSTOMER: Dillon Inc.
CREDIT ACCOUNT: Dillon Inc.
LIMIT: 50,000
CUSTOMER: Kruger Inc.
CREDIT ACCOUNT: Kruger Inc.
LIMIT: 100,000
B Limit for group of
customers
CUSTOMER: West Inc.
CREDIT ACCOUNT: West Inc.
LIMIT: 300,000
CUSTOMER: Dillon Inc.
CREDIT ACCOUNT: Dillon Inc.
LIMIT: 0
CUSTOMER: Kruger Inc.
CREDIT ACCOUNT: Kruger Inc.
LIMIT: 0

When a group of affiliated companies exists, the credit data for customers of the group can be
specified at a head office. Data such as risk category and credit limit that is agreed upon then applies
to all affiliated companies in the group.
The open order values and the receivables from all customers of the group are managed under the
same credit account.

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Credit Limit For New Customers
CUSTOMER: NOVUS Inc.
LIMIT: 10,000
Novus Inc.
New customer
-
-
-
Novus Inc.
-
-
-
List: customers w/o credit data
Manual creation
CUSTOMER: NOVUS Inc.
LIMIT: 10,000
Risk category: New customers
Credit rep.grp: New customers
LIMIT: 10,000
Control via credit control area
Automatic creation
A B

In variant A, where no credit data has been created, customers are not subject to credit control.
In variant B, credit data is created for new customers as soon as they are acquired. This means that
these customers are subject to credit monitoring from the first moment they are in the system.

Caution: Credit controls can only be carried out if credit data has been maintained
for customers.

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Central Data and Data Per Credit
Control Area
CUSTOMER: TILIA Inc.
TOTAL LIMIT: 100,000
Max. individ.limit: 60,000
CURRENCY: USD
Central data
CCA: USA
LIMIT: 50,000
CURRENCY: USD
CCA: Germany
LIMIT: 30,000
CURRENCY: DEM
Data per
CCA
30,000 DEM = 20,000 USD
50,000 USD
20,000 USD
70,000 USD
Maximum individual limit ok
Total limit ok

Total credit limit:
This determines the total permissible credit for a customer across all credit control areas. The sum
total of all the individual credit amounts granted to that customer in all the control areas he belongs to
may not be greater than the total credit limit for that customer.
Maximum individual credit limit:
Valid for all control areas, this limit sets a ceiling on the amount of credit that may be granted to the
customer in any one credit control area in your system.
Individual credit limit:
The individual credit limit determines the actual credit limit for a certain customer in a certain control
area. This individual limit must not exceed the maximum individual credit limit for that customer
(which is valid for all control areas). When setting up credit control areas you can set a default value
for the individual credit limit. Specifying a default value ensures that the credit limit is set at the
appropriate amount when you create a customer in a company code, i.e. credit master records are
created for each customer automatically when it is created.

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Disputed Items
Incoming payment TILIA Inc.
Open items 12,000
Incoming payment 11,000
Difference 1,000
Configuration: Financial Accounting- Incoming payments
Reason code
01
02
Disputed
yes
no
TILIA Inc.
Receivables: 1,000
TILIA Inc.
Receivables: 0
Reason code
01
02
TILIA Inc.
Receivables: 1,000
TILIA Inc.
Receivables: 1,000
Customer account Credit account

Reason codes are defined for each company code to enable the system to process payment
differences. Reason codes are assigned if, for example, cash discount deadlines were exceeded, or
cash discount was taken even though the customer was required to pay the full amount, or if the
customer simply miscalculated the amount paid.
You can define an indicator for each reason code specifying whether or not the system should create a
disputed item for a payment difference. Disputed items do not increase a customers receivables total
recorded in credit management.
Disputed items are also not included in credit checks on the earliest open item and the amount of
open items with a certain number of days in arrears as a percentage of all open items.

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When To Review Credit
Order
Credit status: blocked
Credit control
Delivery
Credit status: blocked
Credit control
Goods issue
Credit control

In system configuration you specify at what points in the above example you will carry out a credit
review. You can, for example, configure your system to check credit only during order processing.
If a credit review is blocking a document, it cannot be processed any further by functions in sales and
shipping.
A credit review at the goods issue stage cannot block any transactions, since this is the final shipping
transaction. However, if a customer is found to have exceeded his credit at the goods issue stage, the
system will not allow you to post the goods issue for that delivery, and instead issues an error
message.

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Summary Credit Management
The flexible credit management functionality allows you to
easily create credit control areas which represent the
organizational structures of your company or group in the
system
Since the credit functionality is integrated into the order
management process, you can carry out credit reviews on
transactions at a very early stage.
To learn more in detail about credit management including
how to configure this functionality, we would recommend
you visit cours LO645.

Asset Accounting
Asset Accounting

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Contents
Chapter 41 Periodic Processing
Chapter 42 Info System
Chapter 43 Transfer of Old Assets Data
Chapter 37 Organization Structure of Asset
Accounting
Chapter 38 Master Data
Chapter 39 Asset Transactions
Chapter 40 Valuation

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Chapter Organizational Structure of Asset
Accounting
l Client, company code, chart of depreciation, chart of
accounts
l Assignment to Cost Accounting
l Asset class

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Company code 1001
1000
Company code 1000
1000 2000 3000 - - -
Assets Assets
n n intangible assets intangible assets
n n fixed assets fixed assets
n n financial assets financial assets
Expenses Expenses
n n depreciation depreciation
- - -
Business area
Client Client
Client - Company Code
Software Software
Machines Machines
Securities Securities
100
50

The client is the highest level in the SAP System hierarchy. Specifications which you make on this
level apply to all company codes.
Each company code is an independent accounting unit. The legally required balance sheet and profit
and loss statement are created on this level.
A business area is a separate unit in business terms for which an internal balance sheet and profit and
loss statement can be created.

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Chart of Accounts - Chart of Depreciation
Client Client
Country A
:
Chart of deprec. Chart of deprec.
Book deprec. Book deprec.
Tax deprec. Tax deprec.
Cost-acc. dep. Cost-acc. dep.
Group deprec. Group deprec.
Chart of accounts
Company code Company code Company code Company code
1000 2000 3000 - - - -
Chrt of acts. INT Chrt of acts. INT Chrt of acts. CAUS Chrt of acts. XXX
Chart of deprec. Chart of deprec. Chart of deprec. Chart of deprec.
1DE 1GB 1US 1XX

You can create a number of charts of accounts for Financial Accounting and a number of depreciation
areas for Asset Accounting in the system.
General ledger accounts are defined on the level of the chart of accounts.
You define the necessary depreciation areas in the chart of depreciation. You can define a separate
depreciation area for each type of valuation.
You will usually want to create one chart of depreciation for each country. It makes sense for all the
company codes in a country or in a business/industrial sector to used the same chart of depreciation.
Each company code uses exactly one chart of accounts and one chart of depreciation.
Several (all) company codes can work with one chart of accounts and one chart of depreciation.

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Organizational Structure - Example
Charts of depreciation Charts of depreciation
Country A Country A Country B Country B
Machine Tools,
Inc.
Country A
Financing
Services, Ltd.
Country A
Charts of accounts
Client Client
Industry Banking
Asset Cons-
truction, Inc.
Country B
Asset
Financing Co.
Country B

There is no set relationship defined in the system between the chart of accounts and chart of
depreciation.
One possibility is to set up charts of accounts according to branches of industry and charts of
depreciation by country.
SAP provides model charts of depreciation for many countries, with pre-defined depreciation areas.

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Asset Accounting Company Code
Chart of
accounts
Chart of Chart of
Company Code
+
Data for Asset Accounting
Asset Accounting Asset Accounting
Company Code Company Code
= =

You have to set up company codes in Financial Accounting first.
Then assign them to a chart of depreciation, and add the data necessary for Asset Accounting.
You can use the company code for Asset Accounting only after making these modifications.

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Cost Accounting Assignment
Controlling
area
1000
Company code
1000
Company code
1001
Cost center
Act. Plan
Asset - Forklift
Cost center
Order
Vehicles Vehicles
Book deprec.
Tax deprec.
C-acc. deprec.
Order
Vehicles Vehicles
Act. Plan
Depreciation Depreciation
Interest Interest
Client Client

You can assign an asset to the following Controlling objects:
cost center
activity type
order
maintenance order
When you assign an asset to a cost center, the system automatically assigns it to a controlling area.
A controlling area can include one or more company codes.

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Client - Asset Class
Astor House 1
Vehicle 4711
Computer 11
Printer 6C
Fixtures and Fittings
Vehicles Vehicles
Buildings Buildings
Asset Classes
Book deprec.
1DE 1DE
Tax deprec.
Cost-acc.dep.
Book deprec.
1US 1US
Tax deprec.
Group
Book deprec.
1XX 1XX
Asset Class Fixtures and fittings
Control data
Default values
Assets

You create each asset in an asset class.
Asset classes consist of a master data section and a section for determining values.
The master data section must be assigned to at least one chart of depreciation. This assignment
enables you to complete the asset class with the data for determining values.
You can suppress individual depreciation areas in each asset class, for example investment support
areas which are only applicable to certain classes.
For each depreciation area, the depreciation terms for the assets can either be proposed by the system
with the option of changing, or they can be mandatory.
Several charts of depreciation can also be assigned to an asset class. This ensures that the asset class
catalog is uniform despite using different depreciation areas.

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Summary: Organizational Structures in
Asset Accounting
l The organizational structures of Asset Accounting are
presented in this chapter:
n The chart of depreciation:
The chart of depreciation contains the necessary
depreciation areas for different types of valuation.
Every company code is assigned to exactly one chart
of depreciation.
n The depreciation area:
The depreciation area shows the valuation of assets
for a given purpose (such as, book or tax
depreciation, or depreciation for cost accounting).
n The asset class is the means of structuring the asset
portfolio according to different legal and business
requirements.

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Chapter Master Data Asset Accounting
l Functions of the Asset Class
l Master Records
l Bulk Changes using Workflow

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Functions of the Asset Class
Asset class
Account Account
allocation allocation
Screen Screen
layout layout
Number Number
assignment assignment
Special Special
features features
Default Default
values values
Selection Selection
features features
Assets Liabilities
Asset portfolio
Real estate
Machinery
Financ. assets
Fixtures+fit.
. . .
. . .
. . .
Bal. sheet items Bal. sheet items
Acct. determination Acct. determination
Asset class Asset class
Assets
Lathe Lathe
02200000 02200000
Create Create
asset asset
Drill Drill
press press
02115000 02115000
1

The asset class contains default values and control elements which are passed on to the individual
assets when you open a new asset master record.
By entering useful default values, you reduce time and effort needed for creating new asset master
records. You also ensure that the records in a given class are handled uniformly.

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Definition of the Asset Classes
Client level Client level
Account allocation
Screen layout rule
Number range
Default values
Chart of depreciation Chart of depreciation
level level
Section for
valuation data
Selection of
depreciation areas
Default values
Master data
section
Asset classes

Asset classes are made up of a master data section and a section for valuation data.
You define the master data section of an asset class once on the client level.
The valuation data section is dependent on the assigned chart of depreciation, which in turn is
directly linked to the company code.

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Account Assignment
. . . . . .
Account
determination
10000
Real estate
20000
Technical assets
30000
Fixtures and fittings
Class
Chart of accounts CAUS
Chart of accounts INT
Book Book
Cost-acc. Cost-acc.
Deprec. Interest
Acquis. Retmt.
D C
D C
D C
D C
D C
D C
D C
D C
D C
Deprec.
D C
D C
D C
D C
- - -
Account
allocation

By means of the account allocation, all asset class master records are assigned to certain general ledger
accounts. These accounts are simultaneously posted in Financial Accounting when a business
transaction takes place. The balances of these accounts are in turn entered in the corresponding
balance sheet items.

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Screen Layout for Asset Master Data
Computer 11
Asset
Fixtures and Fittings 3000 Screen layout
Feldgruppe
Screen layout Maint. levels
Req. Opt. Sup.
Dis-
play
Class Main no. Sub-no.
Description
Inventory no.
Cost center
x x x
x x
x x
x x
Asset master
Description ?
Inventory number
Cost center ?
Fixtures and
Fittings
:
Screen layout
3000
- - -

The screen layout and the maintenance level are the most important elements in the asset class for
making control settings. .
The screen layout specifies for asset master records:
which fields and/or field groups are displayed in the asset master record
whether these fields appear as required entry or optional entry fields.
This allows you to reduce the number of master data fields to those that are specifically needed for the
asset class, and to ensure that certain important control information has to be entered.
The maintenance level determines where maintenance of each data field and/or field group is allowed.
The possible maintenance levels are
asset class
asset main number
asset sub-number.

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Number Assignment
Company code -
number assignment
Company code
1000
1000 1001
2000 3000
2000 3000
4711 4711 4711
4712 4712 4712
4713 4713 4713
4714 - - - - - -
4715
4716
- - - - - -
Asset
numbers

You enter the number range in the asset class. The number range controls the assignment of asset
numbers, and is defined either as internal or external.. Internal numbers are automatically assigned by
the system, external numbers are assigned by the user.
You can assign a company code its own number ranges, or link it to those of other company codes.
You enter the company code for number assignment in the Asset Accounting company code (for
number assignment across company codes).

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15 15
Transaction type groups
Special Asset Class: Assets under Construction
Class: Assets u. const.
Extras Extras
AuC status AuC status
Down payment Down payment
16 16 Down payment carried forward Down payment carried forward
from previous years from previous years
n n AuC managed as total AuC managed as total
n n line item settlement line item settlement
n n capital investment measure capital investment measure
areas areas
deprec. deprec.
key key
Book dep. Book dep. 0000 0000
Tax dep. Tax dep. 0000 0000
Cost-acc. Cost-acc. LINA LINA
negative values allowed negative values allowed
depreciation is not calculated in depreciation is not calculated in
depreciation areas intended for the depreciation areas intended for the
balance sheet balance sheet

Assets under construction require their own asset class.
Choosing the depreciation key 0000 ensures that depreciation is not calculated for the asset under
construction in depreciation areas that are posted to the balance sheet (in accordance with the legal
requirements in most countries). However, special tax depreciation and investment support are
possible even on uncompleted assets.
Assets under construction have to be shown separately in the balance sheet.
It is possible to post down payments on assets under construction if you enter transaction type group
15.
You can enter credit memos on the asset under construction after its complete capitalization, if you
allow negative acquisition and production costs (APC).
The component IM (Investment Management) is available for managing more extensive asset
investments from a controlling-oriented perspective.

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Asset class - Depreciation area

Low value assets - Individual check
Exactly 1 asset per master record
Low value assets - Quantity check
Any number of assets per master record
When posting: Check against
the allowed maximum amount
or
Special Asset Class: Low Value Assets

You can choose whether to manage low value assets (LVAs) using individual management or
collective management.
For each type of management, you have to set up a separate asset class.
If you choose collective management of LVAs, you have to enter a base unit of quantity in the asset
class.
You request the maximum amount check in the depreciation area in the asset class. You enter the
maximum allowed amount in the IMG under Activities at the level of the company code.

SAP AG
Creating the Asset Master Record
using a reference using asset class
taking over the default
values from the asset class
'copying' an
existing asset
Create Create
asset asset

When you create the asset master record, you have two options:
You can use the asset class, to which the asset will belong, to provide default values. The asset
class then supplies the most important control parameters in the asset master record.
Or you can use an existing asset as a reference for creating the new asset master record. (Possibly
the reference asset has default values that are more suitable than those in the asset class.)
Enter additional information, such as an asset text.
When you save, you receive an asset number (if the asset class is assigned to a number range that uses
internal number assignment).
This asset number is also the account number of the individual asset account.

SAP AG
Time-dependent Data
ASSET MASTER RECORD
- Time-dependent data -
Enter period under consideration Enter period under consideration
Valid from Valid from MMDDYYYY MMDDYYYY
Valid to Valid to MMDDYYYY MMDDYYYY
Cost center A from 01/12/YY to 08/27/YY
Cost center B from 08/28/YY to 11/30/YY
Cost center C from 12/01/YY to 03/14/YY
. . . . .
. . . . .
. . . . .
New Interval
01
Month
Calendar

Some information in the asset master record can be managed as time-dependent data. This is of
particular significance for cost accounting assignments (for example, cost center, order, project).
Shift operation and asset shutdown, both of which can have a direct effect on depreciation, should
also be recorded on a monthly basis as part of this time-dependent data.
The history of time-dependent assignments is stored in the system over the entire life of an asset.

SAP AG
Changing Assets
Document for this
field change
Document number
Date of change
Name of user who
made change
Fields changed
Old and new
contents of field
Change asset
List of fields that
were changed
Field 1
Field 2
Field 3
List of
changes per field
Change 1
Change 2
Change 3
All for
document
2 x
on asset on asset on field on field
Change documents for asset Change documents for asset
Display asset
Environment Environment
complete change
document with
all fields
Document for this change
DOCUMENT NO:
DATE:
CHANGED BY:
OLD/
NEW FIELD CONTENTS
Asset
Cost center X
2 x

Each time you change an asset master record, the system creates a change document, which contains
all necessary information.
When a large number of assets are affected by a change, you can make a bulk change. Using this
procedure, you can carry out freely-definable master data changes, mostly automatically. (An
example is the change of assignment to a cost center when the cost center plan has been changed.)

SAP AG
The Asset Sub-number
Asset number 4711
Production plant Synthetic material
Sub-number
2000
De-aerator Reactor
Sub-number
1000
Extruder
Sub-number
3000
Pipe
Sub-number
9000

If an asset consists of several components, it might be advisable to manage the individual components
separately as sub-number master records. This might be useful for both technical and accounting
reasons. You might divide up assets by sub-number, if :
you want to manage the values for subsequent acquisitions in following years (for example
buildings) separately,
you want to manage the values for individual parts of assets separately,
you want to divide the asset according to various technical aspects.
You can work directly with a specific sub-number, all sub-numbers belonging to an asset, or a
selection from a list display of sub-numbers. You can also evaluate accumulated depreciation and the
book values for previous fiscal years separately for the individual asset components.

SAP AG
Use of Workflow in Asset Accounting
Reporting Reporting
Value display Value display
General Workflow General Workflow
procedure procedure
work list
of
selected
assets
Generate Generate
Check & Check &
release release
Process Process
Select Select

Workflow is currently used in FI-AA for mass retirements and bulk changes.
There are three central steps:
1. Select the objects (assets) to be changed
2. Assign the task to be performed on the objects
3. Release and process the Workflow
You can create a work list
- from the asset value display
- from the asset master record
- from the asset Information System
- using general Workflow procedures
You can select the assets to be changed via almost any field in the asset master record.

SAP AG
Bulk Changes using Workflow
2 Create work list
List of the assets to be changed List of the assets to be changed
(such as the asset list or asset directory) (such as the asset list or asset directory)
Short text: Short text:
Bulk change: Bulk change:
Cost center 4711 replaced by 8936 Cost center 4711 replaced by 8936
Task: Task: Bulk change
Replacement rule A
Condition:
If <cost center> = '4711'
Replacement:
Field Value
Cost center 8936
Entries for bulk change
n Replacement rule A
3
1
Pre-defined Workflow task Pre-defined Workflow task
for bulk change: for bulk change: BULK CHANGE
The user's SAPoffice The user's SAPoffice
inbox inbox
Option of releasing
or processing the
worklist
4

To perform bulk changes, proceed as follows:

1. Enter a substitution rule to specify which fields you want to change.
2. Generate a list of assets to be changed (for example by running a report with the appropriate
selections).
3. Click on the button Create work list in the list display. You can then enter the task number for
your Workflow.
Bulk changes are predefined as a standard task in the system.
4. When you specify a task, a popup appears in which you can enter your substitution rule.
5. The Workflow will then appear in the users SAPoffice inbox, where it can be released and
processed (if the user has authorization).

SAP AG
Substitution COST 1
Step 001 Change cost center 4711 to 8936
Prerequisite
More ... <ANLZ> &KOSTL = 4711
Continue
Substitutions (when prerequisite is met)
Field Contant value Sub. Exit
Cost center 8936
Entry 1 of 1
Constant value or program exit, Constant value or program exit,
if condition is met if condition is met
Definition of conditions Definition of conditions
using Boolean rules using Boolean rules
Workflow for Bulk Changes (Rule)

The substitution rule consists of preconditions, which must be met before the rule can run, and of the
replacement rules themselves.
Enter a constant value or your own user exit as a replacement rule.
You can find further information on substitutions in the R/3 Library in the Financial Accounting
section under Special Ledger.

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Summary Master Data Asset
Accounting
l Master data is explained in this chapter:
n The asset class:
In each asset class, you define control parameters and
default values for depreciation calculation and for other
master data.
n The asset:
A fixed asset is an item in the company assets which is
identified as a single commodity in the balance sheet and
which is used in the company's business activities.
n The sub-number:
A complex fixed asset can be represented in the system
using several master records, that is, sub-numbers.
n Workflow:
In FI-AA, Workflow is used for making mass changes to
master data.

SAP AG
Chapter Asset Transactions
l Asset Accounting as Subsdiary Ledger
l Integrated Asset Acquisitions
l Document Types
l Document Number Ranges
l Transaction Types
l Asset Retirement
l Asset Transfer
l Capitalization of Assets under Construction
l Current-value Depreciation

SAP AG
Asset Accounting as Subsidiary Ledger
Asset Asset
Material Material Customer Customer
Machine press Machine press
1000 1000
Vendor Vendor
1000
G/L Accounts G/L Accounts
General Ledger
Fixed assets
Vendor
Payables
1000 1000

Along with the integration of accounting and logistics functions, the integration of the subsidiary
ledgers with the general ledger is also extremely important. Every transaction in customer and vendor
accounts in Accounts Payable and Accounts Receivable, and in the asset accounts has a direct affect
on the corresponding accounts of the general ledger. The subsidiary ledgers are reconciled with the
general ledger in this way.

SAP AG
Asset Acquisition - Integration
FI FI
MM MM
CO CO
Asset Asset
Transactions
Acquisitions
Retirements
Goods
receipt
document
Settlement of
order/project
Depreciation areas
Posting
document
2000.-
.
.
.
...
2000
...
1800
...
2100
Book Tax C-acc . . .
line items

The acquisition posting can be created in the department that is primarily responsible for the
transaction.
Acquisition from vendor is when an asset is obtained from a business partner (as opposed to
Acquisition from in-house production). This acquisition of an asset from a third party can be
posted in different ways, and in different organizational units (R/3 components):
- in Asset Accounting (FI-AA), without reference to a purchase order, but integrated with
Accounts Payable
- in Asset Accounting, without reference to a purchase order, and without integration with
Accounts Payable (posting to a clearing account - with/without clearing)
- in Materials Management (MM), with reference to a purchase order, at goods receipt or invoice
receipt
Acquisition from in-house production" is the capitalization of goods or services that are partially
or completely produced in your own enterprise. For these in-house produced goods (such as
replacement parts) or services (such as maintenance measures), you have to capitalize costs to assets
that were also produced in your enterprise. Generally, you carry out the capitalization of production
costs or maintenance by settling an order to an asset. For more information, see the documentation
for the R/3 System CO-OPA (Order Project Accounting - R/3 library). If there is no order, you can
also manually post production or maintenance costs to an asset.

SAP AG
Procedure for Integrated Asset Acquisition
Integrated- posted to vendor
Doc. date Doc. type Company code
Posting date
PK 70 Account Asset Trans. type 100
Amount Tax amount
Tax indicator
Asset value date
PK 31 Account Vendor
Amount
Tax indicator
Post
Vendor line Vendor line
Posting: Posting:
Asset line Asset line

You can post to the asset and to the vendor in one document in Asset Accounting, using the menu path
Postings B Acquisition B External acquisition B with vendor in the Asset Accounting menu.
You can freely determine the sequence of the posting lines.
The posting debit asset, credit vendor is often made in Accounts Payable. This posting then fills the
requirements of both Financial Accounting and Asset Accounting at the same time.

SAP AG
Accounts for Integrated Asset Acquisition
Posting key Posting key Account Account Amt. Amt. Trans.type Trans.type Ast. val. date Ast. val. date
- Integrated posted to vendor -
Simplified example: Simplified example:
Posting w/out discount and w/out tax on 09/01/YYYY
ASSET ASSET
VENDOR VENDOR
Payables Payables Fixed Assets Fixed Assets
ACCOUNTS ACCOUNTS
Entry Entry
70 Asset 1000 1000 100 09/01/YY 09/01/YY
31 Vendor 1000 1000 --- ---
in general ledger in general ledger
in subsidiary ledger in subsidiary ledger
A
u
t
o
m
.
p
o
s
t
i
n
g
1000 1000
1000 1000

When you post to a vendor or an asset account, the relevant general ledger accounts (payables and
fixed assets) are automatically posted at the same time.

SAP AG
Document Type: Gross or Net
AN AN
AA AA
Caution: Caution: If you deduct the discount If you deduct the discount
at the time of payment, you have at the time of payment, you have
to reverse the discount amount to reverse the discount amount
on the asset subsequently. on the asset subsequently.
1. 1. Net Net : : Asset invoice Asset invoice
Doc. type Doc. type : :
Acct. type Acct. type : : A,K,M,S A,K,M,S
Procedure Procedure : : gross amount gross amount
minus minus input tax input tax
minus minus discount discount
capitalized amount capitalized amount
2. 2. Gross Gross : : Asset invoice Asset invoice
Doc. type Doc. type : :
Acct. type Acct. type : : A,D,K,M,S A,D,K,M,S
Procedure Procedure : : gross amount gross amount
minus minus input tax input tax
capitalized amount capitalized amount

You have to enter a document type for each document that you post (or the system automatically
enters a default document type).
You freely define the document type in Customizing. It is a two character, alpha-numeric entry that
systematizes how the documents are stored.
You assign exactly one number range to each document type.
You specify account types that are allowed when making entries with this document type.
The net document type determines how the posting is processed:
with document type AA you post gross, that is, without deducting a discount
with document type AN , on the other hand, the amount capitalized to the asset is reduced by the
discount deducted.

SAP AG
Maintain
interval

Company code: 1000
Number range 01
Year YYYY
from number 0100000000
to number 0199999999
Number status 1000010000
External __

You define a separate number-range for documents for each company code.
If you do not want the numbers defined as year-dependent, then enter a future year under year.

SAP AG
Transaction Type
Acct. assignment Retirement/Transfer Other features
- capitalize asset - retirement w/ revenue - past activity
- deactivate asset - gain/loss from retirement - posting to affil. company
- debit/credit indicator - TTY of offsetting posting - consolidation procedure
- acct. assgmt. to project - acquisition in same year - not for manual use
- document type - repayment of investment
support
controls
Transaction type

It is not sufficient to identify an asset transaction as a credit or a debit, since the assets have to be
represented in the asset history sheet, for example, as acquisitions, retirements, transfers, and so on.
In order to more precisely identify asset transactions, therefore, transaction types are used. You
always need to enter a transaction type when posting.
The transaction type specifies
which accounts in an account allocation
which depreciation areas and
which value fields
should be updated. In addition, you have to make additional entries to indicate retirements/transfers or
other characteristics of the transaction.

SAP AG
Transaction Types/Transaction Type Groups
210
Retirement -
sale
100
Acquisition -
purchase
110
Acquisition
in-house
production
200
Retirement -
scrapping
34n
Transfer -
asset under
construction
3nn
Transfer -
affiliated
company
Transaction type groups
10 Acquisition Acquisition 2n Retirement Retirement 3n Transfer ... Transfer ...
Retirement list
210
200
201
Retmt. Retmt.
Retmt. Retmt.
Retmt. Retmt.
Sale Sale
Scrapping Scrapping
Act of God Act of God
Asset history sheet
Retmt.
. . .
Acquis.
. . .
Transfer
. . .
Closing
balance
Starting
balance
Transaction types
. . .

Every transaction type belongs to a transaction type group. The most important control factors of a
transaction type come from the transaction type group. The transaction type group categorizes the
following business transactions:
those that influence the acquisition and production costs of an asset. This includes acquisitions,
retirements, transfers, post-capitalization.
down payments
investment support measures
manual depreciation
write-ups
The transaction type groups are fixed and cannot be changed.
You can define your own transaction types in order to be able to represent certain transactions
separately in reports.
For certain transaction types, you can specify that they are limited to certain asset classes (for
example, down payments allowed only in the asset class for assets under construction).
You have to organize the use of the appropriate transaction types within the hierarchy of your
enterprise.

SAP AG
Non-integrated Asset Acquisition
- non-integrated, posted to vendor -
CLEARING ACCOUNT CLEARING ACCOUNT VENDOR VENDOR
ASSET ASSET
1
2
Accounts Payable Accounts Payable
Asset Accounting Asset Accounting
1000 1000 1
1000
1000 2
2
1000 1000 1

When the asset acquisition is posted in two different departments, the following problem arises:
You normally use a clearing account. In order to guarantee that this account has a zero balance, you
use a general ledger account with open item management. Therefore, you also have to clear this type
of account.
For the posting Postings B Acquisition B External acquisition B Automatic offsetting entry, the
clearing account has to be cleared in an additional step. (Usually this task is performed in Financial
Accounting.)
For the posting Postings B Acquisition B External acquisition B Clearing offsetting entry , the
clearing account is automatically cleared at the same time you post credit to asset, debit to clearing
account.

SAP AG
Asset Acquisition with MM
G/L
Re-
lease
AP
Payment G/L
Purchase
order
request
Purchase
order
Goods
receipt
Logistics Logistics
Financial Financial
Invoice receipt
(preliminary
entry)
Asset Asset
Asset master record
valuated
or
unvaluated
Capitalization
of asset
Actual
Preliminary
actual
PO
commitment
Cost center
or order
Purchase order
requests Cost
center or order

When you are using both the FI-AA System and the MM (Material Management) System, you can also
post an asset acquisition within the framework of purchasing (see the System Administration Guide ).
Unlike most other accounting transactions, this involves working through a series of steps to be
performed at different times:
(1). creation of a purchase requisition
(2). creation of the purchase order
(3). There are a number of different possibilities for the next step:
- The goods receipt takes place before the invoice receipt and the values are not yet posted to Asset
Accounting. The line items are created and the values are updated instead at the time of the
invoice receipt. However, the system uses the date of the goods receipt as the capitalization date.
- The goods receipt takes place before the invoice receipt and the values are posted directly to Asset
Accounting. The asset is capitalized, line items are created, and the value fields in the asset are
updated. When the invoice is received later, there may be differences between the invoice amount
and the amount posted at the time of the goods receipt. In this case, the corresponding adjustment
postings are made to the asset.
- The invoice receipt takes place before the goods receipt. The asset is capitalized, line items are
created and the value fields are updated.
The account assignment type (A=asset) determines whether the goods receipt is posted directly to
Asset Accounting or not. For business accounting purposes, it makes sense to post the goods
receipt directly to Asset Accounting, since this date is usually date that determines when the asset
belongs to the enterprise.

SAP AG
Asset Acquisition - Master Record
Master Record Master Record
Asset value date: Asset value date: 09/01/YYYY 09/01/YYYY
Vendor: Vendor: 1 1
Purchase price: Purchase price: 10,000 10,000 net net
Document Document
Asset 4711
Capitalization on 09/01/YYYY
Orig. acquis. on 09/01/YYYY
Acquis. period CY09
Depreciation area Dep. start
01 07/01/YYYY
02 07/01/YYYY
20 09/01/YYYY
: :

The following information is automatically set in the asset master record at the time of the first
acquisition posting (this applies to assets that are capitalized normally):
date of capitalization and the first acquisition
acquisition period
depreciation start date per depreciation area.

SAP AG
Asset Acquisition - Value Fields
Depreciation calculation
area key
01 LINR
: (str.-line, half yr. rule)
:
20 LINA
(str.-line, pro rata)
Value fields Value fields
Useful life = 10 years
annual dep. = 1000
Depreciation area Dep. start Planned dep.
01 07/01/CY
20 09/01/CY
Asset value date:
09/01/CY
Document Document
Master Record Master Record
Dep. start
07/01/CY
09/01/CY
500
333
CY = Current year

The system uses the asset value date of the initial acquisition posting to determine the depreciation
start date of the asset. This determination takes place using the control of the depreciation start in the
depreciation key of the asset. The system enters this start date in the asset master record.
The system determines the planned annual depreciation and the planned interest.
When further transactions are posted to the master record, these values are corrected acordingly.

Caution: The posting date and the asset value date always have to be in the same fiscal year!

SAP AG
Procedure for Asset Retirement
Example of partial Example of partial
retirement : retirement :
Integration with FI
Posting: Posting:
Document date 07/01/YYYY
Posting date 07/01/YYYY
PK 01 Account: Customer
Amount 3300
Calc. tax Tax indicator
PK 50 Account:Revenue from asset retmt.
Amount * Tax indicator
Asset retirement
Customer line Customer line
Revenue line Revenue line
- Acquis. date 01/01/YYYY- 2, APC 10000
- Retmt. of 50% of APC on 07/01/YYYY
- Revenue 3000 + 300 sales tax
Asset............... ASSET NO.
Sub-number...
Transaction type.. 210
Ast value date... 07/01/YYYY
Max. amount........
Quantity...............
Percentage rate...... 50

Select the field asset retirement in the revenue account. You reach a window, in which you can
enter
the number of the asset
the retirement transaction type
the asset value date
the portion of historical APC being retired, or the indicator for complete retirement.

SAP AG
Accounts for Asset Retirement
A/R posting A/R posting
Customer Customer
3300 3300
Retirement Retirement
revenue revenue
3000 3000
Tax Tax
300 300
Assets posting Assets posting
Asset Asset
10000 10000
1250 1250
Clearing of Clearing of
retirement retirement
3000 3000
Loss Loss
750 750 5000 5000
1
3
2
1
2
3
Example for partial Example for partial
retirement: retirement: - Acquis. date 01/01/YYYY - 2, APC = 10000
- Retirement of 50% of APC on 07/01/YYYY
- Revenue 3000 + 300 sales tax
APC
amount retired
proportional value
adjustment

In Asset Accounting, you can post a retirement with the function Postings B BB B Retirement B BB B Asset sale B BB B
No customer for entering asset transactions. The accountant responsible for accounts receivable must
then carry out the revenue posting, if necessary.
Both these procedures can also be performed in one function, that is with one document. This
involves three steps:
Create the invoice lines in the customer open line item account.
Post the invoice to the customer open line item account.
Post the APC being retired to the asset.
The system automatically posts the proportional accumulated depreciation of the asset and the gain or
loss from the sale.

SAP AG
Asset Retirement
Acquis. date 01/01/YYYY-2, UL = 10
APC 10000.-
Dep; str.-line from APC 1000.- per year
Value date of retirement: 07/01/YYYY
Portion retired: 50% of APC
Determining proportional value adjustments Determining proportional value adjustments
Value adjustments in Value adjustments in
past periods: past periods:
2000; of which 50% 2000; of which 50% = 1000 = 1000
Value adjustments in Value adjustments in
the current period: the current period:
1000; of which 50% for 1/2 year 1000; of which 50% for 1/2 year = 250 = 250
= 1250

When you use the standard transaction types provided with the system, the system automatically
creates certain postings. When there is a gain or loss, in addition to the postings to the asset balance
sheet account and the adjustments to accumulated depreciation, the system automatically posts gain or
loss, as well as revenue clearing. The gain/loss postings, as well as the revenue clearing postings, are
dependent on transaction types. They are created automatically when the indicator Gain/loss from
retirement is set in the definition of the transaction type. If not needed, you can deselect this
indicator. In that case, you have to make the required postings manually.

SAP AG
Asset Retirement
Asst. value date Asst. value date 07/01/YYYY 07/01/YYYY Debit/credit 8300 Debit/credit 8300
Item Posting Account Tax Tax Amt.
key indicator
001 01 Customer A1 3300
002 50 Retirement revenue A1 300- 3000-
003 50 Taxes 300-
004 75 Asset 5000-
005 70 Asset 1250
006 40 Retirement clearing 3000
007 40 Retirement loss 750
Item Item 004, 005: 004, 005: retired APC and proportional value adjustments for the asset retired APC and proportional value adjustments for the asset
Document Document
}

The system determines the reference period for the asset retirement based on the asset value date and
period control. The system automatically determines the value adjustments (depreciation) up to this
period on the portion of the asset being retired. This amount is then retired at the same time using the
same transaction.

SAP AG
Workflow for Mass Retirement
List of assets to be retired List of assets to be retired
(such as, asset list, master data list...) (such as, asset list, master data list...)
Anlage
Anlage
Entries for Entries for
mass retirement mass retirement
n posting date
n document date
n transaction type
n asset value date
n revenue distribution
l prop. to APC
l prop. to net book value
n revenue
User's SAPoffice User's SAPoffice
inbox inbox
Option to release or
process the work list
Create work list
1
2
3
Predefined tasks for asset retirement:
l retirement without revenue
l retirement with revenue
Short text: Retirement Short text: Retirement
Plant 0001 Plant 0001
Task: Task: Retmt. w/ revenue Retmt. w/ revenue

To perform a mass retirement proceed as follows:

1. Generate a list of assets to be retired (for example by running the appropriate report with the
desired selection).
2. Use the function key Create work list in the list display to enter the task number for your
Workflow.
Mass retirement with and without revenue is predefined as a standard task in the system.
3. When you specify a task, a popup appears in which you can enter additional information for the
retirement.
4. The Workflow will then appear in the users SAPoffice inbox, from where it can be released and
processed (if the user has authorization).
If errors occur during the Workflow, the system automatically generates a new Workflow containing
the assets for which errors occurred. It then processes this Workflow in the foreground so you can
correct the errors.

SAP AG
Asset Transfer
Asset XXXX
Posting date MMDDYYYY
Transaction type
Asset ZZZZ
Asset value date MMDDYYYY
Complete transfer
Posted amount ....
Percentage rate
transfer to transfer to
Business area 1000
Business area 2000
automatic determination automatic determination
and posting of proportional and posting of proportional
value adjustments value adjustments !
300

Asset Accounting distinguishes between the following types of transfer, depending on the
circumstances:
Stock material (current assets) is transferred to a fixed asset, for example, the installation of a
replacement part (see online documentation for a detailed explanation of the procedure).
An asset under construction is settled and transferred to a completed asset.
You transfer an asset within a corporate group to a different company code. This procedure is
described in the section for asset transfer (see online documentation for a detailed explanation).
You want to split up an asset or install part of an asset in another asset (transfer from asset to asset).
(See change of location below for an explanation of the procedure.)
The asset has changed location. As a result, you have to change organizational allocations (such as,
asset class, business area) in the master record that cannot otherwise be changed.
- Enter a transfer transaction type. In the screen that follows, enter the asset to which you want to
make the transfer, and the amount of APC that is being transferred.
- The system automatically determines the proportional value adjustments, as it does for
retirements.

SAP AG
Asset 3 Asset 3
Asset 2 Asset 2
Asset 1 Asset 1
Gen. master
data
Depreciation
areas
Acquis. Retmt. Transfers
Asset under Asset under
Acquisitions Acquisitions
Investment Investment
support measures support measures
Down payments Down payments
Special Special
T
r
a
n
s
f
e
r
s
A
c
q
u
i
s
i
t
i
o
n
s
Assets under Construction
Asset history
sheet
Completed assets
A.u.C.
Buildings
General master data General master data
Automatic handling of special
depreciation and investment support!

Assets you produce yourself have two phases that are relevant to Asset Accounting:
the under construction phase
the useful life.
Generally, the assets have to be shown in two different balance sheet items during these two phases.
Therefore, they have to be managed using a different object or asset master record during the under-
construction phase than for the completed asset. The transfer from the under-construction phase to
completed asset is referred to here as capitalization of the asset under construction. You can
manage assets under construction in the FI-AA System in two ways (depending on the functions you
need):
as a 'normal' asset master record
as an asset master record with line item management.
The capitalization of the asset under construction is basically the transfer to a completed asset. This
transfer is handled differently in the two instances.
When you capitalize the asset under construction, the system automatically separates the transactions
from the previous year from the transactions from the current year:
TTY 340 - Acquisitions from previous years transferred from asset under construction
TTY 341 - Acquisitions from previous years transferred to completed asset
TTY 345 - Acquisitions from current year transferred from asset under construction
TTY 346 - Acquisitions from current year transferred to completed asset
If you have more extensive capital investment measures, we recommend using the R/3 IM (Investment
Management) System. Using this system, you can represent capital investments simultaneously as
assets under construction (for accounting purposes) and internal orders or projects (for controlling

purposes). For more information, see the documentation for the IM (Investment Management)
System.

SAP AG
Asset u. Const. Asset u. Const.
Invoice Invoice
Engineers, Inc. Engineers, Inc.
steel girders steel girders
excavation excavation
Invoice Invoice
Constructo, Constructo, Inc. Inc.
beams beams
Invoice Invoice
Electro, Ltd. Electro, Ltd.
copper cable copper cable
Installation Installation
1 1
2 2
3 3
100% 100%
70% 70%
20% 20%
10% 10%
10% 10%
80% 80%
Office building Office building
Heating system Heating system
Lighting Lighting
Supplier
Withdraw from
stock
Internal activity
Order
A
S
S
E
T
S
EX-
PENSE

When performing a line item settlement of an asset under construction to one or more completed
assets, you should proceed as follows:

1. Select all line items which you want to settle in the same proportion to the same receiver.

2. Define the distribution rule for these line items.

3. Post the settlement of line items in the desired manner to the specified receivers.

Please note that this posting procedure settles all line items to which a posting rule is allocated.

SAP AG
Current-value Depreciation
Choose depreciation area Choose depreciation area
x x 01 01 Book depreciation Book depreciation
x x 02 02 Special tax depreciation Special tax depreciation
x x 30 30 Group USD Group USD
x x 31 31 Group DEM Group DEM
e.g. transaction type 640 e.g. transaction type 640
Max. amount 1000
Value date MDDYYYY
Offset account

In addition to the automatic calculation of depreciation using depreciation keys, you can also plan
manual depreciation (for example unplanned depreciation) for individual assets in the FI-AA system.
When you enter the transaction type, the system recognizes that you want to perform manual
depreciation (for example, current-value depreciation).
In an additional window, you can select the depreciation areas for which you want depreciation to be
posted (for example, current-value depreciation alowed for balance sheet depreciation, but not for tax
depreciation).
After you have manually planned depreciation, the system does not yet create a related FI general
ledger document. This document is generated by the depreciation posting program.
Verification:
You can verify manually planned depreciation using a special report (Info system B Report selection B
Depreciation lists B Manual depreciation).
Similarly, you can post write-ups or post-capitalization by choosing the appropriate transaction type
and the depreciation areas you want to post.

SAP AG
Summary: Asset Transactions
l This chapter explains asset transactions. During the life of an
asset there a number of changes that affect the value of the
asset. The FI-AA System recognizes a wide range of business
transactions. Transaction types make it possible to handle all of
the necessary postings appropriately.
l The asset transaction can be entered directly in the department
in which the transaction originates:
n For acquisitions, for example, the posting can be made in
one of the following areas: Financial Accounting (FI) ,
Warehouse (goods receipt/invoice verification) (MM),
Controlling (order/project settlement) (IM/PS/CO),
Maintenance
n For retirements, the posting is usually made in Accounts
Receivable, etc..
SAP applications are particularly efficient when the user exploits
the high degree of integration.

SAP AG
Chapter Valuation
l Chart of Depreciation
l Asset Classes in the Chart of Depriciation
l Depriciation Areas
l Depriciation
l Depriciation Keys
l Replacement Values
l Interest

SAP AG
The Chart of Depreciation
Chart of
depreciation
Depreciation
area 01
Depreciation
area 02
Depreciation
area 03
Depreciation
area 20
Book
deprec.
Tax
deprec.
Special
reserves
Cost-acc.
deprec.
Depreciation
area 30
Group
deprec.

You will generally need values for fixed assets for various business and legal purposes (for example,
for book depreciation, cost-accounting depreciation and so on). In the R/3 FI-AA system, it is
therefore possible to manage values in parallel in as many depreciation areas as you want. The chart
of depreciation is therefore best described as a catalog of depreciation areas structured according to
various business aspects. You can specify the characteristics and thereby the significance of the
individual depreciation areas in each chart of depreciation.
The country-specific charts of depreciation, which are supplied as standard, are for reference purposes
only.
You can only open a new chart of depreciation by using an existing chart of depreciation as a
reference.

SAP AG
Chart of depreciation Germany Chart of depreciation USA
Germany
01
02
03
10
15
20
30
31
32
41
51
Book depreciation
Special tax depreciation
Special depreciation reserve
Valuation of net assets
Balance sheet for tax purposes
Cost-accounting depreciation
Consolidated balance sheet (local curr.)
Consolidated balance sheet (group curr.)
Book depreciation in group currency
Investment support (reducing APC)
Investment support as a reserve
USA
01
10
11
12
13
20
30
31
33
40
41
42
43
Book depreciation
Federal tax ACRS/MACRS
Alternative Minimum Tax
Adjusted Current Earnings
Corporate Earnings & Profits
Cost depreciation
Consolidated balance sheet in local currency
Consolidated balance sheet in reporting curr.
State modified ACRS
Difference between Book and MACRS
Difference between MACRS and ALT MIN
Difference between MACRS and ACE
Difference between MACRS and E&P
Comparison of Country-Specific Charts of
Depreciation (Example: Germany and USA)

SAP supplies typical country-specific charts of depreciation as references. They contain various
depreciation areas based on the requirements of each country. You cannot use these charts of
depreciation directly. You have to first open an active chart of depreciation. You can then copy the
depreciation areas you want to use from the reference chart of depreciation into your own chart of
depreciation. You can leave out those you do not require.

SAP AG
Areas
Depreciation
key
Proposed
useful life
Minimum
useful life
Maximum
useful life
Book dep. Book dep.
10/00 10/00
_ _
_ _
DG30 DG30
decl-bal. decl-bal.
3 X 3 X
Tax dep. Tax dep.
10/00 10/00
_ _
_ _
SNFG SNFG
invest. invest.
support support
Group Group
8/00 8/00
_ _
_ _
LINR LINR
str.-line str.-line
Book dep. Book dep.
12/00 12/00
_ _
LINB LINB
str.-line str.-line
Group Group
8/00 8/00
_ _
_ _
LINR LINR
str.-line str.-line
ACRS ACRS
. . . . . . . .
_ _
_ _
. . . . . . . .
. . . . . . . .
. . . . . . . .
8/00 8/00
. . . . . .
Class
Chart of
depreciation
Machines Machines
USA USA Germany Germany
Asset Classes in the Chart of Depreciation
1

You can define any number of asset classes in Customizing. You use the asset classes to categorize
assets according to the needs of your enterprise. The asset classes are valid across company codes.
The catalog of asset classes, therefore, applies uniformly to all company codes. This is true, even if
the company codes use different charts of depreciation, and therefore different depreciation areas.
You can assign different charts of depreciation to an asset class, so that all assets in this class will be
treated differently in each country.

SAP AG
Depreciation Area XX in the Asset or Asset Class
Depreciation key Depreciation key
Useful life Useful life
Ord. deprec. start Ord. deprec. start
Changeover year Changeover year
Index Index
Variable dep. amount Variable dep. amount
Scrap value Scrap value
What kind of depreciation? What kind of depreciation?
For how long? For how long?
When does the useful life begin? When does the useful life begin?
When do you want to change from When do you want to change from
declining balance to straight-line declining balance to straight-line
depreciation? depreciation?

Do you want to calculate annually Do you want to calculate annually
increasing replacement values? increasing replacement values?
How much depreciation should be How much depreciation should be
weighted by the shift factor when you weighted by the shift factor when you
use shifts? use shifts?
Do want to end depreciation when Do want to end depreciation when
this scrap value is reached? this scrap value is reached?
01
Jan
Calendar
Years

You have to enter depreciation keys in the different depreciation areas. The depreciation key contains
all the control amounts for the calculation of planned annual depreciation. You can enter a
depreciation key in the asset master record in each depreciation area.

SAP AG
Rules for Valuation
Management of values
Revaluation/Indexing
Functions ("real" or "derived" )
Dependent on other dep. areas
Control of depreciation posting
Depreciation key/Calculation key
Transaction types
Asset values Asset values
APC
Depreciation
Replacement
values
01
Book dep.
30
Group USD
31
Group DM
Values
Depreciation
terms
Monthly?
Number
range 02?
. . .,
Rules for valuation Rules for valuation
in the chart of in the chart of
1DE 1DE
1US 1US
1xx 1xx

The depreciation areas are identified in the system by a two-character numeric key. You can specify
depreciation terms specifically for each asset. You make this specification in the asset classes or
directly in the given asset master record.
You can calculate values in a depreciation area for a specific purpose (for example, for the balance
sheet, for cost accounting, for taxes). All of the depreciation terms and values necessary for this can
be managed at the level of the depreciation area. The system allows you to define an almost indefinite
number of depreciation areas. This feature enables you to handle a large number of different types of
valuation in parallel.
The types of values the depreciation area manages are the most important factors in determining its
significance for accounting.
You can set up depreciation areas that take over their APC as well as their depreciation terms from
another depreciation area.
You can automatically post the asset balance sheet values (APC/ accumulated depreciation) and
depreciation from each depreciation area to the corresponding general ledger accounts. You can
choose direct posting in online, or periodic posting to Financial Accounting.

SAP AG
Screen Layout in Dep. Area & Maintenance Level
Maintenance Maintenance
level level
Screen layout Screen layout
for area for area
Dep. area Dep. Use. life
01 Book dep. DG30 5
02 . . . SNFG 5
:
Uniform control Uniform control
of valuation of valuation
Chart of dep. ABCD per country's legislation
01 Book dep. DG30 1000
02 . . . SNFG 1000
:
Dep. area Deact. Dep. Use. life Index Layout

You enter the screen layout for the valuation fields of the depreciation areas in the asset class, per
depreciation area.
You make sure that valuation is uniform by means of the maintenance level. There are three options:
Asset class
This maintenance level ensures uniform control of valuation at the level of the asset class. The
entries made in the asset class are passed on to the asset master record, and you cannot overwrite
them.
Asset main number
The control of valuation is uniform for the asset master record as whole. A default value from the
asset class can be changed in the main number, but all component assets (sub-numbers) are required
to take over the value from the main number, without the option of changing it.
Asset sub-number
The control of valuation can be determined on an individual basis. The sub-numbers can have their
own treatment of valuation.

SAP AG
Ordinary
depreciation
Special
depreciation
Unplanned
depreciation
Depreciation
Reasons for depreciation:
Years
Determine depreciation areas

Define account determination
Define depreciation key
Define unit-of-production depreciation

In each depreciation area, you can specify the type of depreciation and the transaction types you want
to manage. The system supports the following direct types of depreciation or transaction types:
Ordinary depreciation
Ordinary depreciation is the planned reduction in asset value due to normal wear and tear.
Special depreciation
Special depreciation represents depreciation that is solely based on tax regulations. This form of
depreciation usually allows for depreciating a percentage of the asset value. This percentage may
be staggered within a tax concession period, without taking the actual wear and tear on the asset
into consideration.
Unplanned depreciation
Ordinary depreciation reflects the normal depreciation of the asset due to normal use. Unplanned
depreciation is concerned with unusual circumstances, such as damage to the asset, that lead to a
permanent reduction in its value.

SAP AG
Depreciation Key
area key
01 LINR
: (straight-line, 1st yr.conv.)
:
20 LINA
(straight-line, pro rata)
Internal Calculation Key Internal Calculation Key
Ordinary depreciation Ordinary depreciation
Special depreciation Special depreciation
Interest Interest
Cut-off value key Cut-off value key
controls controls
- depreciation type - depreciation type
- class - class
- method - method
- base value - base value
- declining balance deprec. - declining balance deprec.
- changeover - changeover
- period control - period control

You can manage different types of depreciation in parallel in one depreciation area.
You specify the automatic calculation of the different types of depreciation using depreciation keys
and the internal calculation key.
You define the required depreciation keys per chart of depreciation.
In the depreciation key , you can enter a separate calculation key for ordinary depreciation, special tax
depreciation and for the calculation of interest.
In addition, you can enter a cut-off value key for the calculation of a scrap value, if this is needed.
The internal calculation keys specify the actual method of calculation.
They control the
depreciation type
method
base value
percentage rate
period control
changeover
calculation after end of useful life
treatment of shutdowns
validity of calculation key
interest calculation

SAP AG
Elements of Depreciation Calculation
l D Percentage
rate from useful
life
l G Full
percentage in
concession
period
l P Explicit
percentage rate
l M Mean value
from several
areas
l S Unit of prod.
/ Total number
of units
l . . .
l Acquisition
value
l Half of
acquisition
value
l Replacement
value
l Net book value
l . . .
l Pro rata per start
of period
l Pro rata to mid-
period per start of
period
l Pro rata per mid-
period
l First year
convention of a
half year
l Per start of fiscal
year
l Per mid-year
l Per year-end
(= start in next
year)
l Per mid-quarter
l Ordinary
depreciation
l Special tax
depreciation
l Interest
Methods Methods
Base Base
value value
Period Period
control control
type type
Decl.-balance Decl.-balance
l Multiplication
factor
l Maximum
percentage rate
l Minimum
percentage rate
Changeover Changeover
l Changeover
method
l Changeover
depreciation key
l Net book value
for initiating
depreciation
changeover
l Straight-line
depreciation
l Decl.-balance
depreciation
l Other
depreciation
l No assignment
Class Class

Every transaction on an asset master record automatically results in a depreciation amount being
calculated. This amount is calculated according to the depreciation key in the asset master, and is
displayed in the value fields of the asset. The most important influences on the calculation of
depreciation are:
the value date of the document: it controls, in conjunction with with the depreciation key, the
determination of the period. It is used to set the depreciation start date in the asset.
the depreciation key
the transaction type
The depreciation calculation method is the most important feature of the internal calculation key. It is
used to carry out the different types of depreciation calculation in the system. It determines which
other settings of the calculation key are required entries and which are not.
The base value is closely related to the selection of the depreciation method. Since many depreciation
methods cannot be used with all base values, the depreciation method often determines the base value.
The period control determines the start and end date for depreciation. You can specify a period
control for each of the four transaction types (acquisitions, subsequent acquisitions/post-capitalization,
transfers, retirements). In this way, you can set the start of depreciation at the beginning of the year
for all acquisitions in a year, and the end of depreciation for retirements either at the first or last day of
a period, for example. The system uses the value date of the transaction (acquisition or retirement) as
a basis, and then determines the start or end of depreciation by means of the period control.

SAP AG
Values Values
Year Deprec. Net book value
1 1000 9000
2 1000 8000
3 1000 7000
4 1000 6000
5 1000 5000
6 1000 4000
7 1000 3000
8 1000 2000
9 1000 1000
10 1000 0
Example: Example:
Book depreciation valuation Book depreciation valuation
- Declining balance 30% from - Declining balance 30% from
net book value - net book value -
Example: Valuation for Book Depreciation
Depreciation area 01 Book depreciation Depreciation area 01 Book depreciation
Depreciation key Depreciation key LINK LINK
Useful life Useful life 10 years 10 years
Ord. dep. start Ord. dep. start 01/01/YYYY 01/01/YYYY

In the book depreciation area, the system calculates book depreciation (depreciation allowed by
commercial law), without special depreciation.

SAP AG
Example: Valuation for Tax Depreciation
Depreciation area 02 Tax depreciation Depreciation area 02 Tax depreciation
Depreciation key Depreciation key SNFG SNFG
Ord. dep. start Ord. dep. start 01/01/YYYY 01/01/YYYY
Special dep. start Special dep. start 01/01/YYYY 01/01/YYYY
Example: Example:
Tax depreciation valuation Tax depreciation valuation
Special depreciation Special depreciation: 50% of : 50% of
APC; APC; alongside ordinary dep. alongside ordinary dep.
Values Values
Year Ord. dep. Spec.dep. Net book val.
1 1000 5000 4000
2 1000 - 3000
3 1000 - 2000
4 1000 - 1000
5 1000 - 0
6 0 - 0
7 0 - 0
8 0 - 0
9 0 - 0
10 0 - 0

In the tax depreciation area, the system manages special tax depreciation, without creating reserves for
special depreciation.

SAP AG
Example: Derived Depreciation Area
Depreciation area 03 Special reserves Depreciation area 03 Special reserves
determined determined as the difference between
depreciation areas 01 and 02
Example: Example:
Tax valuation Tax valuation
- Creation of special reserves - - Creation of special reserves -
Values Values
Book dep. Book dep. Tax dep. Tax dep. Special reserves Special reserves
Year Year 01 01 02 02 03 03
1 1 1000 1000 6000 6000 -5000 -5000
2 2 1000 1000 1000 1000 0 0
3 3 1000 1000 1000 1000 0 0
4 4 1000 1000 1000 1000 0 0
5 5 1000 1000 1000 1000 0 0
6 6 1000 1000 0 0 +1000 +1000
7 7 1000 1000 0 0 +1000 +1000
8 8 1000 1000 0 0 +1000 +1000
9 9 1000 1000 0 0 +1000 +1000
10 10 1000 1000 0 0 +1000 +1000
01
Book
depreciation
02
Allowed
tax dep.
03
Special
reserves
+ =
Formula

Special reserves are created in a third, derived depreciation area, in which the difference between tax
depreciation and book depreciation is calculated.
The values of a derived depreciation area are calculated from the values of two or more real
depreciation areas, using a calculation formula. The values are not stored in the database. They are
calculated internally each time the information is requested.
One possible use for the derived depreciation area is the calculation of special reserves as the
difference between tax depreciation and book depreciation. In this case, you need two real
depreciation areas.
Both depreciation areas (tax depreciation and book depreciation) have to use identical acquisition
values.
The rules for the book value in a derived depreciation area are always checked against the rules in the
real areas from which it is derived. This check takes place at the time of each posting and each
change to depreciation.

SAP AG
Example: Cost-accounting Depreciation Area
Depreciation area 20 Cost accounting Depreciation area 20 Cost accounting
Depreciation key Depreciation key LINA LINA
Ord. dep. start: Ord. dep. start: 01/01/YYYY 01/01/YYYY
interest calculation and indexing interest calculation and indexing
negative net book value allowed negative net book value allowed
Example: Example:
Cost-accounting valuation Cost-accounting valuation
- Straight-line from APC, also - Straight-line from APC, also
below zero, indexing of APC below zero, indexing of APC
and calculation of imputed and calculation of imputed
interest - interest -
Values Values
Year Year Rep.val Rep.val Dep. Dep. NBV NBV Interest Interest
1 1 10000 10000 1000 1000 9000 9000 500 500
2 2 10300 10300 1030 1030 8270 8270 515 515
3 3 10609 10609 1061 1061 7518 7518 530 530
4 4 10927 10927 1093 1093 6743 6743 546 546
5 5 11255 11255 1126 1126 5945 5945 563 563
6 6 11593 11593 1159 1159 5124 5124 580 580
7 7 11941 11941 1194 1194 4278 4278 597 597
8 8 12299 12299 1230 1230 3406 3406 615 615
9 9 12668 12668 1267 1267 2508 2508 633 633
10 10 13048 13048 1305 1305 1583 1583 672 672
11 11 13439 13439 1344 1344 630 630 672 672
: : : : : : : : : :

You define whether interest should be calculated for the cost-accounting depreciation area, and
whether depreciation should continue below zero. You make these specifications when you define the
depreciation areas.
Furthermore, you can decide if you want to use index series for indexing of the replacement value.

SAP AG
Depreciation area Depreciation area
Replacement Values
20 Cost-acc. dep.
: :
Revaluation of Revaluation of
X X APC APC
X X acc. dep. acc. dep.
: :
Master data
Depreciation area
:
20 Cost-acc. LINW 10 00001
:
1 1 Replacement values Replacement values
Assets Assets
Index figure by fiscal year Index figure by fiscal year
Age Age
Historical indexing Historical indexing
Index class Index class
Index series Index series
Index figures Index figures
Asset master record Asset master record
Index Index 00001
Class Class 1 1
Simulation Simulation 103.6 103.6
Index Index 00001
YYYY YYYY 101.1 101.1
YYYY YYYY 103.6 103.6

If revaluation (indexing) is planned for a depreciation area, you can specify an index series for
calculating the replacement value. You enter the index series in the asset or in the asset class.
The index series must be assigned to an index class. This class contains the essential control
parameters for the index series. In this case, you should assign the class Replacement value of
assets.
For each fiscal year, you should specify index figures for the index series.

SAP AG
Calculating the Replacement Value
YEAR - 3 YEAR - 2 YEAR - 1 YEAR
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
"normal"
historic
Replacement values at end of fiscal year
Years
130
120
= 18904 = 17450
130
100
= 19500 = 15000
Year
Acquis.
year
Year - 2
Year - 1
Current
year
. . .
Index
100
110
120
130

. . .
Acquisition 10000
Acquisition 5000
Rep. value (curr. yr.) Rep. value (curr. yr.) = Rep. value
Index (curr. yr.)
Index (prev. yr.)
Index (curr. yr.) Index (curr. yr.)
Index (aquis. yr.) Index (aquis. yr.)
Rep. value (curr. yr.) = APC Rep. value (curr. yr.) = APC
*
*
* *
*

You can calculate the current replacement value in two different ways:
calculation based on the replacement value of the previous year (normal calculation)
calculation based on a historical replacement value (historical calculation)
(When you use historical calculation, then all acquisitions are related to this acquisition year, and
are indexed with the index figure of the capitalization year.)

SAP AG
Cost-accounting Interest
Cost center
Actual Plan
Cost center
Order
Vehicles Vehicles
Book dep.
. . .
Cost-acc.
Order
Vehicles Vehicles
Actual Plan
Asset
Dep. key Dep. key LINW LINW
Ord. dep. Ord. dep. : : . . . . . .
Interest Interest : : ZAHO ZAHO
Imputed interest Imputed interest
Interest calculation
Calculation key ZAHO
Dep. type : after end of use.life
Dep. method : below book value 0 :
Base value : (Half of acquis. value)
. . .
Percent :
Z Z _ _
P P _ _
2 2
10.000 10.000
10 %
. . . . .

If you want to have interest calculated for a depreciation area, make the following settings in the
system:
Specify that interest should be managed in the depreciation area.
Specify for depreciation posting that interest should be posted in this company code and this
depreciation area.
Use a depreciation key to which an internal calculation key is assigned for calculating interest (or
define your own key).
The system posts interest simultaneously during the periodic depreciation posting run. It posts to the
accounts which are entered in the relevant account determination for each depreciation area.
Furthermore, an additional account assignment can be made to the cost center entered in each asset
master record (as is the case with depreciation).

SAP AG
Summary: Valuation
l This chapter describes the methods of valuation in Asset
Accounting. The FI-AA System determines depreciation
and other valuation of assets within the framework of
integrated asset management.
l For each of your calculation needs, you can use
n special depreciation types (ordinary depreciation,
special depreciation, and so on)
n different depreciation terms (depreciation methods,
useful life, and so on)
n different base values for depreciation calculation
(acquisition and production costs, replacment value,
and so on)
l You need your own depreciation areas with special
depreciation and valuation parameters for this flexible
valuation. You can manage each asset with any number
of different base values.

SAP AG
Chapter Periodic Processing
l Periodic Processing - Overview
l Depreciation Posting
l Fiscal Year Change
l Year-end Closing

SAP AG
Cost center Order
ACTUAL PLAN
Posting asset values
Investment
support
Periodic Processing - Overview Periodic Processing - Overview
Index figures
Year Index fig.
yyyy 100.000
yyyy+1 105.125
yyyy+2 109.857
CO CO
Revaluation
Depreciation
posting run
Primary cost
planning
Depreciation area XY: Example Depreciation area XY: Example
periodic posting of asset values periodic posting of asset values
Asset balance Asset balance Account Account
10000 10000
31
Dec
Calendar
Fiscal year change
31
Dec
Calendar
Fiscal year change
Year-end closing
Fiscal Year change/
Year-end closing
Settings
. . .
Periodic Periodic
processing processing

Periodic processing comprises those tasks in Asset Accounting which must be performed at periodic
intervals. Also included are tasks to be performed as part of the special valuation of fixed assets (for
example, calculating replacement values).
Replacement values and insurable values are updated in the system with the help of index series.
You need to define the characteristics of the index series in Asset Accounting Customizing. The
specification of current index figures is a regular Asset Accounting task.
Investment support is a subsidy which a company has received for certain asset investments. Assets
which are eligible for such a subsidy are marked in the asset master records with an investment
support key (for further information, see the System Administration Guide). All specifications for
claiming the investment support are stored in the definition of this key. You can post the claim
manually or in a mass procedure.
At present only the values of one depreciation area can be automatically posted online in Financial
Accounting: Therefore, the changes to asset values (transactions) from other areas with automatic
posting have to be posted periodically to the appropriate reconciliation accounts. In the case of
derived depreciation areas which do not record acquisition and production costs, the program posts
proportional value adjustments due to retirements, transfers, post-capitalization and so on.
If you want to plan primary costs on a cost center basis, you can periodically determine planned
depreciation and interest and pass these on to primary cost planning in the CO system via a report.

SAP AG
Ordinary
depreciation
Special
depreciation
Periodic
revaluation
I
n
d
e
x
I
n
d
e
x
manually
planned
deprecia-
tion
Dep. Dep.
- -
P P
O O
S S
T T
I I
N N
G G

P P
R R
O O
G G
R R
A A
M M
Cost center Order
Cost element
CO CO
Individual assets
Accounts
FI FI
Interest
10 %
. . . . .
FI-AA FI-AA

The calculation and planning of depreciation, interest and revaluation is controlled by keys in the
Asset Accounting system. They can also be entered manually using a special posting transaction (for
more information, see current-value depreciation). In both cases, these planned values in Asset
Accounting have to be periodically posted to the corresponding expense and asset balance sheet
accounts in the general ledger. This periodic posting takes place using a batch input session. The
posting session also posts the different depreciation types, interest and revaluation, in addition to the
writing-off and allocation of special reserves. The system does not create individual documents, only
summarized posting documents (per general ledger account).

SAP AG
Organizational Procedure for Depreciation Posting
C
o
n
s
i
s
t
e
n
c
y
!
Preconditions: Preconditions:
Posting settings Posting settings
Document type with own Document type with own
external number range external number range
Posting prodecure Posting prodecure
Accounts Accounts
Monthly?
Number
range 02?
. . .
Posting run Posting run
BDC session Update of
RABUCH assets
Process!!!
Update of
G/L accounts

For each depreciation area and company code, specify
the frequency
the distribution method
the additional account assignment
for posting.
For each company code you must define a document type for automatic depreciation posting only.
This document type requires its own external number range.
You also need to specify the accounts for posting.
To ensure consistency between Asset Accounting and Financial Accounting, you must process the
session created by the posting report.
If you fail to process the session, an error message will appear at the next posting run.

SAP AG
Settings for Posting
10000 1000 10000 1000
10000 10000 1000 1000 1000 1000
1000 1000 1000 1000
10000 10000 1000 1000 1000 1000
Depreciation area 01: Book depreciation
Automatic online posting of asset values Automatic online posting of asset values
Periodic posting of depreciation Periodic posting of depreciation
Depreciation area 20: Cost-accounting
Depreciation area XY: Example
Periodic posting of asset values Periodic posting of asset values
Asset Asset
Fixed assets Fixed assets Expense Expense Value adjustmt. Value adjustmt.
Fixed assets Fixed assets Expense Expense Value adjustmt. Value adjustmt.
Subsidiary
ledger
General
ledger
Back- Back-
ground ground
Online
Cost-accounting Cost-accounting Offset acct. for Offset acct. for Imputed Imputed
depreciation depreciation cost-acc. dep. cost-acc. dep. interest interest . . . . . .
Back- Back-
ground ground

For each depreciation area, specify whether you want to:
automatically post asset values online,
post asset values at periodic intervals,
post depreciation at periodic intervals
to the general ledger
Currently you can only automatically post asset values online in area 01 (book depreciation).

SAP AG
Dep. Posting for Acquisitions during Year
Example: Dep. posting cycle : monthly
Acquis. on 5/1/YY : 6000
Planned useful life : 5 years
Period control : half year convention
0
50
100
150
200
250
300
350
400
450
500
1 2 3 4 5 6 7 8 9 10 11 12
Acquis. on 1/1/YY
smoothing
catch-up method
Depreciation posted
Month

The system supports two methods for distributing forecasted depreciation to the posting periods.
Catch-up method
The catch-up method calculates the posting amount in this posting period, based on the difference
between the planned and the posted depreciation up to this period.
Smoothing
In contrast to the catch-up method, smoothing distributes the difference between forecasted annual
depreciation and already posted depreciation to the posting periods that are still open.
The difference between the two methods is seen in the treatment of acquisitions or post-capitalizations
that take place during the fiscal year:
Using the catch-up method, the depreciation on the transactions during the fiscal year (from the
period in which depreciation starts, per period control, up to the current period) is posted as a lump
sum. The depreciation posting program posts this amount in the posting period, in which the value
date of the transaction lies.
Using smoothing, this amount is distributed evenly to the periods from the current depreciation
period up to the end of the fiscal year (regardless of the value date of the transaction).

SAP AG
Asset values
Transaction 10000 0
APC 10000 10000
Ordinary dep. 3000 - 2100-
Asset values
Transaction 0 10000
APC 0 10000
Ordinary dep. 0 3000 -
31
Dec
Calendar
Fiscal Year Change
31
Dec
Calendar
Fiscal Year Change Year-end closing
Year-end closing program Year-end closing program
- Check: - Check:
Can the year-end closing be carried out? Can the year-end closing be carried out?
- Maintenance of the last closed fiscal year - Maintenance of the last closed fiscal year
Closing reports Closing reports
- Asset history sheet - Asset history sheet
- Asset list - Asset list
- . . . - . . .
Depreciation posting run Depreciation posting run
1. 1.
2. 2.
3. 3.
Year-end closing
Fiscal year change Fiscal year change
Fiscal Year Change

The fiscal year change program opens new annual value fields for each asset.
The earliest you can start this program is in the last posting period of the old year.
You have to run the fiscal year change program for your whole company code.
SAP provides you with a check report for year-end closing. It checks
whether the fiscal year change was completed for all assets,
whether depreciation was fully posted,
whether errors exist for any assets.
In addition, if the program finds no errors, it updates the last closed fiscal year for each depreciation
area.

SAP AG
Year-end Closing
Depreciation posting Depreciation posting
Year-end closing Year-end closing
program program
Archiving Archiving
OK? OK?
Adjustment posting Adjustment posting
(Bulk) changes (Bulk) changes
Dep. simulation Dep. simulation
No
OK? OK? No
OK? OK? No
Yes
Yes
Yes
Depreciation
Bal P&L
Asset history sheet
Depreciation lists
Retmt.
. . .
Acquis.
. . .
Transfer
. . .
Closing
balance
Assets

After the depreciation lists and asset history sheet have been checked, depreciation is posted.
Once depreciation has been posted, a balance sheet and profit and loss statement can be created in FI.
If the final result is not satisfactory, you can carry out depreciation simulation or (bulk) changes, or
make adjustment postings.
If you change any depreciation values, you must run depreciation posting again..
The logical year-end closing is completed with the final balance sheet.
The year-end closing program then makes all necessary system checks.
If no errors are found, the program blocks posting in Assets Accounting for the closed fiscal year.
If a closed fiscal year is subsequently released for posting, it can only be blocked again once the year-
end closing program has been re-run.

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Summary: Periodic Processing
l This chapter deals with periodic processing:
n Depreciation posting:
Along with depreciation calculation, depreciation
posting to the appropriate general ledger accounts is
one of the central tasks of integrated Asset
Accounting. In FI-AA, you can post depreciation
planned on periods by means of depreciation keys,
as well as depreciation that is forecasted manually,
at any chosen intervals.
n Year-end closing:
The year-end closing primarily consists of creating
and checking the asset history sheet and other
reports on asset transactions.

SAP AG
Chapter Info System
l Report Selection
l Asset Value Display
l Asset Simulation
l Simulation Versions
l Sort Criteria
l Asset History Sheet

SAP AG
Report Selection
Asset list
Balance sheet explanations
Explanations for P&L
Cost accounting
Depreciation forecast
Special valuations
Reconciliation
Preparations for closing
Daily total
Taxes
History
Individual asset

The Asset Accounting Information system consists of a report tree. The report tree is a freely
definable hierarchical structure. You specify the structure of the report tree in Asset Accounting
Customizing under Information system.
When you double-click on a node of the hierarchy, the system calls up a standard report. SAP
provides a standard report tree (FIAA) for Asset Accounting. You can copy this tree and modify it as
needed:
remove branches of the structure
add branches to the structure
change the report call (call of a user report)
The report tree is found in the application menu for Asset Accounting under Info system. The
standard report tree contains all the standard reports for Asset Accounting. The system always
displays the report tree that is currently defined in FI-AA Customizing.
You can copy and modify the standard report tree or the report tree of another user, under Edit B User
tree. In this way, you can set up the information system according to the needs of the individual user.

SAP AG
Depreciation on
transactions
Display of documents
for the asset
Goods
receipt
document
all values
display dep.
calculation
dep.recalculation
dep. terms
current
book values
Asset Value Display
Display values Display values
one year, one area
one year, several areas
several years, one area
several years, several areas
with simulated change of with simulated change of
depreciation terms depreciation terms
with simulated transactions with simulated transactions
Simulated fiscal Simulated fiscal
year change year change
Asset value display
.
.
.
Posting
document
2000.-

The asset value display offers extensive possibilities for evaluating individual asset master records.
By entering the sub-number *, you can request cumulative evaluations for a main number and the
sub-numbers belonging to it.
The function display depreciation calculation provides a detailed display of the calculation of
depreciation in the system.
You can start reports from within the asset value display transaction via the menu option Environment.
You specify the reports(with different selection versions) that can be started from the respective menu
option in Customizing.

SAP AG
Depreciation Simulation (Order/Project)
Year 1 Year 1 10,000 10,000
Year 2 Year 2 15,000 15,000
Year 3 Year 3 35,000 35,000
Year 4 Year 4 42,000 42,000
: :
Depreciation Simulation Depreciation Simulation
Dep. simulation Dep. simulation
with planned with planned
investments investments
CO order CO order / / CO project CO project
Planned costs Planned costs
Year 1 Year 1 100,000 100,000
Year 2 Year 2 50,000 50,000
Year 3 Year 3 200,000 200,000
Year 4 Year 4 70,000 70,000
: :
planned start-up date 1/1/year 1 planned start-up date 1/1/year 1
Depreciation terms Depreciation terms
Area Area Dp.key Dp.key Use. life Use. life
: : : :
20 20 LINA LINA 10 10
: : : :

The simulation list provides a forecast of future depreciation.
In the initial screen, you make the following choices (along with others):
Should the forecast also include your planned capital investments for the future, or only the
currently existing assets?
Do you want to simulate the use of a different depreciation method in the forecast?

SAP AG
Course of depreciation for
Individual assets
N
e
t

b
o
o
k

v
a
l
u
e
Time
Display asset Display asset
values values
Report for all Report for all
assets assets
Time
A
s
s
e
t

v
a
l
u
e
s
U
s
e
. life
5
y
r.
U
s
e
.

l
i
f
e

4
y
r
.
Development of asset values
Asset class: Vehicles
Simulation version Simulation version
- depreciation areas
- asset class
- depreciation key
- useful life
- valid from / to
Simulated Simulated
asset transactions asset transactions
- acquisitions
- retirements
- transfers
. . .
Simulated Simulated
depreciation terms depreciation terms
- depreciation key
- useful life
- index
P+L
Operating profit Operating profit
with spec. dep.
w/out spec. dep.
Asset Simulation

Simulation, in this context, refers to an experimental change to parameters affecting the valuation of
assets. This change can apply to a single asset, the entire asset portfolio (or parts of it), or to a test
depreciation area. This change is carried out by means of a transaction or a standard report. When
you simulate the development of asset values, you can change all of the important depreciation terms
(depreciation key, useful life, index series). Two types of simulation should be distinguished:
simulation of depreciation for future fiscal years, using a special simulation report and simulation
version
simulation of accumulated depreciation in the past, using a new depreciation area
You can also include planned capital investments (in the form of orders or projects and capital
investment programs) in the simulation.

SAP AG
Simulation Versions
Report date Report date MMDDYYYY MMDDYYYY
Assets Assets
Cap. invest. program Cap. invest. program
Project Project
Order Order
Simulation version Simulation version XY
AB AB . . . . . . . .
XY Str.-line not decl. bal.
Area Area Class Class Dep. key Dep. key Dep. key Dep. key . . . . . .
01 01 1000 1000 DG30 DG30 LINR LINR . . . . . .
For all assets in class 1000, straight-line For all assets in class 1000, straight-line
depreciation is simulated instead of declining depreciation is simulated instead of declining
balance depreciation. balance depreciation.

Simulation versions allow you to simulate a change in depreciation method for each report.
For each area, asset class and depreciation key, you specify which depreciation key and useful life
should be chosen as alternatives for simulation.

SAP AG
Depreciation Simulation
Do you want simulation into the current fiscal year? Do you want simulation into the current fiscal year?
Do you only want simulation for planned capital Do you only want simulation for planned capital
investments? investments?
Do you want to include transactions from the current year in the Do you want to include transactions from the current year in the
simulation? simulation?
Do you want to include planned capital Do you want to include planned capital
investments, that are represented by orders or investments, that are represented by orders or
projects, in the simulation? projects, in the simulation?
Do you want to simulate a change in Do you want to simulate a change in
depreciation terms for the depreciation depreciation terms for the depreciation
forecast? forecast?

You have the option of including depreciation for your planned capital investments in the forecast. In
order to take advantage of this option, you have to be managing the planned investment amounts as
planned costs on an order or project in CO. By assigning depreciation terms and a planned start-up
date to the order or project, you make it possible for the planned depreciation to be displayed.

SAP AG
Sort Criteria Sort Criteria
R e p o r t d e f i n i t i o n
Assets Values
1000
900
700
600
Ranking
list
Individual
list
Totals
report
Sort.... Values Assets Values
*
Report call-up Report call-up
Field Total
BUKRS Company code - -- -
GSBER Business area - -- -
ERGSO Bal. sheet item - -- -
KTANSW Bal. sheet acct. - -- -
ANLKL Class - -- -
Total/individual Total/individual
Ranking list Ranking list
Sort version Sort version 001
Sort version 001
Balance sheet perspective,
management perspective,
and more...

All reports allow you to sort/total data in different ways using freely definable sort criteria.
A sort version consists of a maximum of 5 sort levels which are determined via Data Dictionary fields.
You can call up the technical field names of the required fields using F4. The sort levels are found in
the table ANLAV (asset master data). For lists which process exactly one depreciation area (for
example, the depreciation list), you can also use sort levels from table ANLB.
The report can output a total and a statistic for each sort level.
In the column Total you can specify the levels on which you want totals to be output.
By selecting the indicator 'Statistics' it is also possible to further break down the total of a level in
some lists. You can get a breakdown by depreciation key (for depreciation lists) or transaction type
(for transaction lists).
Generally, you can use any sort version with any report.

SAP AG
APC FY start
- Dep. FY start
= Book val. at FY start
+ Acquisition
- Dep. on acquis.
Post-capitaliz.
- Retirement
+ Dep. on ret.
Down payment
Transfer
Dep. on transfer
Inv. support
= Current APC
Accum. dep.
+
Write-up
=
Curr. book val.
0 10 20 30 99
. . .
. . .
. . .
. . .
Acquisition X
. . .
Retirement . . . .
Transfer .
Post-capitalization .
. . .
History sheet Transaction Ordinary Special Unplanned . . .
group deprec. deprec. deprec.
Asset History Sheet

The asset history sheet is the most important and most comprehensive year-end report or intermediate
report. You can create it using any sort versions, and with totals at any group level, just like any other
report. In addition, you can create a compact totals list that does not contain information on the
individual assets.
Basic versions of the asset history sheet:
You can now freely define line and column structure of the asset history sheet. SAP supplies country-
specific versions of the asset history sheet. These meet the legal requirements in the given country.
There are also additional history sheet versions.
You can define your own history sheet version. You can freely define
the size (maximum of 10 lines by 8 columns),
the headers of the history sheet items,
supplying of values to the history sheet items
Enter this history sheet version as a parameter when you request the asset history sheet.

SAP AG
110 In-house acquis.
100 External asset acquis. 10 Acquis. Acquisition
120 Goods receipt
15 Down paymt.
40 Post-capitalization
Changes to Asset History Sheet
Transaction type Hist. sheet group
Item
11 Acq.- In-house prod. Acq.- In-house prod.
110 In-house acquis.
100 External asset acquis. 10 Acquis. Acquisition
120 Goods receipt
15 Down payment
40 Post-capitalization
History sheet
version A

History sheet
version B

You specify which values from which asset history sheet group should be entered in each column/line
item. In the standard system, the asset history sheet group is identical to the transaction type group.
You can create history sheet groups that are different from the transaction type groups. You need
them only if you want to handle different transaction types in the same transaction type group
differently in the asset history sheet.

SAP AG
Summary: Info System
l This Chapter discusses how Asset Accounting information is
placed at your disposal:
n Report tree:
Standard reports and any reports you have developed
yourself can be grouped together in a report tree.
n Asset value display:
Using this transaction, you can display planned, as well as
already posted asset values and depreciation for an asset.
The information is available in various forms and can be
summarized at various levels.
n Asset simulation:
When you are also using IM (Investment Management), you
can include investment orders, projects and capital
investment programs in the depreciation forecast.
n Asset history sheet:
The asset history sheet is often a required appendix to the
balance sheet. This report provides an overview of the
course of asset values for the individual balance sheet items.

SAP AG
Chapter Transfer of Old Assets Data
l Options for Data Transfer
l Options in Customizing
l Examples
l Automatic Transfer of Old Assets Data
l Account Control after Productive Start

SAP AG
Transfer of Old Assets Data
Previous system
o r
FI-AA FI-AA
Automatic transfer
(Direct data import)
Dialog transfer
(for small volume of data)
Create Create
old asset old asset
A
s
s
e
t
s
Batch input procedure

Data transfer from a previous system is usually the first activity you need to perform in a new
productive system after configuration and asset classification. You can either transfer data
automatically from an old system using a batch input procedure, or you can manually enter the data
using a transaction for old asset data. Please note that in both cases only the relevant asset master data
and line items in Asset Accounting are updated and not the general ledger accounts in Financial
Accounting. Balance reconciliation with the relevant general ledger accounts must therefore take place
separately.

SAP AG
Chapter 7 Transfer of Old Assets Data
l Options for Data Transfer
l Options in Customizing
l Examples
l Automatic Old Data Transfer
l Account Control after Productive Start

You can transfer old assets data from a previous system for any date in the past. If you choose a date
during the fiscal year, you can also enter business transactions (made between the end of the last fiscal
year and the transfer date) during the transfer transaction.
When entering cumulative values, you can also enter the net book value instead of accumulated
depreciation. The system then calculates the accumulated depreciation on the transfer date from the
difference between the acquisition value and the net book value.
When you specify the sequence of the depreciation areas for transfer, the depreciation areas with the
most values to be entered manually should appear first on screen. For the book depreciation area and
investment areas you need to enter values explicitly. For all other areas, values can be transferred from
preceding areas. You can arrange it so that you cannot change values during this procedure.
If you did not manage insurable values in your old system, you can calculate them when you transfer
old assets data.
If you did not manage replacement values in your old system, you can calculate them when you
transfer old assets data, if the depreciation area allows it.
You can use the option "recalculate accumulated depreciation" for testing.
If depreciation was already posted in the old system when old assets data was transferred during the
fiscal year, you can enter the last posting period in the depreciation area.

SAP AG
Transferring Old Data at Fiscal Year End
FI-AA
FI

Asset 1
2000 10000
Asset 2
4000 20000
Asset u. cons.
100
300
Non-curr. assets

30000
Value adjustments
6000
AuC G/L account

400
Asset 1
2000 10000
Asset 2
4000 20000
Asset u. cons.

100
300
SAP System SAP System
Previous system Previous system

The transfer date is the cut-off point in time for the transfer of data from your previous system. The
date represents the status of posting (balances) effective for the transfer of old data. If the transfer date
is the end of the last closed fiscal year, you transfer only the master data, the APC and the
accumulated depreciation as they stood at the end of the last closed fiscal year. You also have to
transfer the balances of the corresponding general ledger accounts at this same level.

SAP AG
Transferring Old Data During the Fiscal Year
FI
Non-curr.assets

10000
1000
Value adjustments
2000
275

Values from previous years Values from previous years
Values from the current year Values from the current year
Values from previous years Values from previous years
Values from the current year Values from the current year
Asset values on 12/31 of previous year Asset values on 12/31 of previous year
Changes during the current year Changes during the current year
Value adjustments up to 12/ 31 of previous year Value adjustments up to 12/ 31 of previous year
Changes during the current year Changes during the current year
FI-AA
Asset
2000
275
10000
1000
SAP System SAP System
Previous System Previous System
Asset
2000
275
10000
1000
Transactions in the current year 500
500 Transactions in the current year

If the transfer date is after the close of the last fiscal year, the transfer is sub-annual.
You not only need to transfer the general master data and accumulated values as they stand at the start
of the fiscal year from the previous system, but also the following values:
Depreciation posted
Transfer depreciation posted in the current fiscal year up to the point of the transfer. In Asset
Accounting Customizing, you need to specify the last posted depreciation period in the previous
system for each depreciation area. You do this in the specifications for old assets data transfer in the
asset company code.
You have the option, instead of transferring posted depreciation, of subsequently posting the total
depreciation for the current fiscal year up until the transfer date. This is done by performing a
posting run for unplanned depreciation. In this case, the FI-AA system posts depreciation that it
calculates for this time period.
Transactions
When transferring old assets data during the fiscal year, you also have to enter transactions which
took place between the end of the last closed fiscal year and the transfer date.

SAP AG
Records with errors Records without errors
Automatic Transfer of Old Assets Data
Previous system
Interface program
Transfer program RAALTD01
DIALOG INTERFACE
ANLH
ANLA
ANLB
ANLC
:
Old data in transfer format
BALTD + BALTB
Batch
Input

Using an interface program, you convert the old data in your previous system to the format of the
Dictionary tables BALTD (master data) and BALTB (transaction data) and place them in a sequential
file.
The old assets data transfer program RAALTD01 supplies the data, using background processing, to
an old assets data transfer transaction. The records without errors are transferred immediately. Records
with errors are stored in the form of a batch input session, and have to be processed later.
The documentation for the RAALTD01 program contains detailed instructions for
the structuring of the sequential transfer file by the interface program
test options
avoiding errors and interpreting errors that occur
the procedure in the event of program termination.

SAP AG
Before FI-AA is introduced
Account Control following Productive Start
Account control in productive FI Account control in productive FI
After FI-AA is introduced
P
r
o
d
u
c
t
i
v
e

s
t
a
r
t
S
e
t

r
e
c
o
n
c
i
l
i
a
t
i
o
n

a
c
c
o
u
n
t
s
1000 1000
1000 1000
1000
Vendor Asset
Fixed assets (Reconc. acct.)
Vendor Fixed assets (can be posted directly)

Please note the following special considerations if you are already using a productive SAP Financial
Accounting (FI) system:
All balance sheet and accumulated depreciation accounts are up-to-date in a productive SAP FI
system. You therefore will not need to copy general ledger account balances Up until the transfer date
(date which determines the status of old assets data you transfer from the previous system), assets are
managed in the non-SAP asset accounting system. Prior to transfer you should make asset postings in
parallel in SAP-FI and the non-SAP system.
After the transfer date, you can create and post to new assets in the SAP system. However, in order to
do this you have to redefine all balance sheet and accumulated depreciation accounts as reconciliation
accounts (FI-AA Customizing: Set reconciliation accounts). These accounts can therefore no longer be
directly posted to after the transfer date.

SAP AG
Summary: Transfer of Old Assets Data
l This chapter is concerned with the transfer of old data
from your previous system:
n Transfer transaction
The old asset must be assigned to an asset class.
Values (APC and depreciation, or net book value)
and possibly transactions (such as, for assets under
construction) have to be transferred to the SAP
system. Which values and transactions are
transferred depends on the transfer date and on
other options you specify.
n Automatic transfer
Automatic data transfer is possible using the transfer
program RAALTD01.

Overhead Cost Controlling
Overhead Cost Controlling

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Overview
Chapter 44 Overhead Cost Controlling
Chapter 45 Master Data in Cost Element and
Cost Center Accounting
Chapter 46 Transaction-Based Postings
Chapter 47 Periodic Allocations
Chapter 48 Planning in Cost Center
Accounting
Chapter 49 Activity-Based Costing
Chapter 50 Internal Orders: Master Data and
Structures
Chapter 51 Internal Orders: Actual Postings
and Commitments
Chapter 52 Period Closing in Overhead Cost
Controlling

SAP AG
Chapter Introduction to Overhead Cost
Controlling
Overhead cost controlling: Tasks
Overhead cost controlling in the R/3 System
Organizational units in the R/3 System from the CO
point of view
Company code and controlling area:
Possible assignments

SAP AG
Tasks in Overhead Cost Controlling
Reporting Period . . . . . . . 1 to 13 1995 Status . . . 0
Cost Elements / Cost Centers Actual Costs Target Costs Var. (abs.)
** Other Administrative Costs 3,238,900.00 3,238,900.00 -
2210 Electricity 56,000.00 56,000.00 -
* 481000 Imp. Depreciation. RA 56,000.00 56,000.00
*+ Imputed Costs 56,000.00 56,000.00
2110 Receiving Control 283,000.00
2120 Warehouse Receiving 424,500.00
2130 Warehouse Shipping 707,499.92 707,499.92 -
2310 Admin Building 295,000.00 - 295,000.00
2320 Warehouse Building 450,000.00 - 450,000.00
2330 Assembly Buildings 670,000.00 - 670,000.00
* 511111 Floorspace Planning
2110 Receiving Control 638,579.96 638.579.96 -
Var. abs. %
Tgt Act
** Cost Element/Cost Center Actual / Target **
- Cost Element/Cost Center Report Actual / Target: Result Cost Element/Cost Center Report Actual / Target: Result
13:32:20
07.12.95

Tasks in Overhead Cost Controlling can be divided into
planning
allocation
management
monitoring
of overhead costs.
All overhead costs are assigned to the locations where they occur or to the actions leading to their
creation. Further allocation is made possible by a number of techniques available for correct
assignment of costs to causes.
At the end of the period, the plan costs as adjusted by the operating rate (target costs) are compared
with the corresponding actual costs. The resulting target/actual variances can be analyzed as to their
originators and used as a basis for further management measures within Controlling (CO).

SAP AG
Overhead Cost Controlling in R/3
Cost Elements
Cost Centers
Material Master
C
o
n
t
r
o
l
l
i
n
g
A
r
e
a
P
r
o
f
i
t
C
e
n
t
e
r
Personnel
Material
Cost Objects
Profitability Segments
Available Assets
External
reference
Orders
Projects
Processes
CO- CO-
PA PA
Billing CO- CO-
PA PA Revenue Types
FI
MM
HR
Capital AM
CO-
CCA
CO-
CCA
CO-
ABC
CO-
OPA
CO-
ABC
AA MM
CO-
PC
SD
Imputed
CO- CO-
PCA PCA
.
.
.

In the SAP R/3 System, Overhead Cost Controlling is divided into:
Cost Element Accounting
Cost Center Accounting
Internal Orders and Projects
Activity-Based Costing

SAP AG
Organizational Units in the R/3 System from the CO
Standpoint
Financial
Accounting
Company
Code
- Organizational
unit in external
accounting
Business
Area
- Balanceable
unit (for
internal
balances)
Cost Cost
Center Center
Area Area
- Organizational
unit in internal
accounting
- Organizational
unit in
Profitability
Analysis
- Organizational
unit in
Cost Center
Accounting
Client
- Application-
wide unit
(technical
subunit)
Logistics
Plant
Profitability Profitability
Segment Segment
- Organizational
unit in
Profit Center
Accounting
Profit Profit
Center Center
- Organizational
unit in Materials
Management
and the PPC

The organization is defined in Financial Accounting with the aid of the company code and the
business area, and in Controlling with the controlling area, profitability segment, cost center, and
profit center.
The controlling area structures an organization from the Controlling standpoint. The company code is
the balancing unit in Financial Accounting. This can be identical to a controlling area but need not be.
The profitability segment is an organizational unit used for a standard segmentation of the sales
market.
Alongside these organizational units, the unit plant may be of use for displaying a factory or branch
office. The plant is used in Materials Management, Logistics, and Production Planning and Control,
and is assigned through a valuation level of a company code, and thereby to a controlling area as well.

SAP AG
Assignment of Company Code and Controlling Area
Company
Code
Company
Code ..
Company
Code 1
Company
Code X
Area Area
Area Area

Company code and controlling area can be combined with each other in different ways. These
combinations illustrate different organizational structures.
If multiple company codes are assigned to a controlling area, one speaks of cross-company-code cost
accounting. Allocations can be carried out in CO that refer to more than one company code.

SAP AG
Combination of Company Code and Controlling
Area
Business Area 0001 Business Area 0001
Company Code 1 Company Code 2
Area 1000 Area 1000
FI
CO
Reconciliation Ledger Reconciliation Ledger

If business areas are used in the company codes, they are also included in Controlling.
If multiple company codes or business areas can be assigned to one controlling area, a need for
reconciliation between Financial Accounting and Controlling can ensue during cross-company-code or
cross-business-area allocations within Controlling. The reconciliation ledger is available for the
creation of reconcilation postings to Financial Accounting.

SAP AG
Summary: Overhead Cost Controlling
The tasks within overhead cost controlling can be
subdivided into planning, allocation, control and
monitoring of overhead costs.
The company code constitutes an accounting unit, the
controlling area structures an enterprise from the
Controlling point of view.
One or several company codes can be assigned to a
controlling area.
If business areas are used, these are also managed within
Cost Accounting.

SAP AG
Chapter Master Data in Cost Element and Cost
Center Accounting
Master data and transaction data
Master data: Cost elements, cost centers, activity
types, statistical key figures
Master data groups
Chart of accounts and cost elements
Automatic creation of cost elements
Standard hierarchy
Cost center types

SAP AG
Organizational Units in Cost Element and Cost
Center Accounting
Cost elements
Cost centers
Activity types
Statistical
key figures
Line items
Totals records
Master Data
Transaction Data
E
V
A
L
U
A
T
I
O
N

In Overhead Cost Controlling one differentiates between master data and transaction data.
Cost elements: Which costs have occurred?
Primary: Costs originating outside the company
Secondary: Costs originating from the companys internal activities
Cost centers: Responsibility areas in the company that create costs and can influence them.
Activity types: Tracing factors or quantity units used to allocate costs of internal activities to their true
originators.
Statistical key figures: Vital statistics of a cost center or cost center/activity type. They can serve as
tracing factors for distribution and assessment, among others, as well as for key figure combinations.

SAP AG
Master Data Groups
Cost Elements Cost Elements Cost Centers Cost Centers Activity Types Activity Types Stat. Key Figures Stat. Key Figures
Personnel Personnel
Wages Wages Salaries Salaries
Motor Pool Motor Pool
F1 F1 F2 F2 F3 F3
Hours Hours
PHR1 PHR1 PHR2 PHR2
Employees Employees
Temps Temps Tenured Tenured
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.

Master data can be combined into groups. As many groups as necessary can be created. These groups
are used when several of the affected master data records are to be processed in a transaction, such as
during planning or in the information system (overhead allocation sheet row = cost element group).
A special group exists for cost centers, the standard hierarchy. All controlling area cost centers must
be assigned to the standard hierarchy. Alongside the standard hierarchy, group maintenance can be
used to create as many alternative cost center hierarchies as necessary.

SAP AG
Time-Based Creation of Master Data
Examination Period: Cost Center Manager
01.01. . . . - 06.30. . . . Hoffer
07.01. . . . - 12.31. . . . Kung
Cost Center 4110
Valid from 01 Jan . . . to 31 Dec . . .

Master data in Cost Center Accounting is always stored as time-based. The exceptions here are the
statistical key figures.
Time-based storage means that, for instance, you can create a cost center for several fiscal years.
If you want to extend the validity period of an existing master data record, use master data
maintenance to create a master data record for the affected extension period. You can use the existing
master data record as a reference and thereby avoid having to repeat filling out the master data fields.

SAP AG
0 1 2 3 7 8 9
Finance:
Current
assets
and
short-
term
capital
4
Non-
opera-
ting
costs,
revenues
Material
inventory
Primary
cost
ele-
ments
Transfer
of FI
postings
Imputed
costs
Distrib.
5 6
Secon-
dary
cost
ele-
ments
Assess-
ment
Inventory
of incom-
plete
and
complete
products
Revenues/
inventory
changes/
active
internal
activity
Transfer
of FI
postings
Closing Secon-
dary
cost
ele-
ments
Activity
alloca-
tion
Order
settle-
ment
Financial Accounting Financial Accounting Cost Accounting Cost Accounting Financial Accounting Financial Accounting
Cost Accounting Cost Accounting
Overhead Cost
Controlling
Profitability
Analysis
Example: German Joint Standard Accounting System

The chart of accounts records all accounts from Financial Accounting and all cost elements in
Controlling.
From the cost controlling viewpoint, a circular system exists because the expense and revenue
accounts in Financial Accounting correspond to the primary cost elements and revenue elements and
the postings are passed on circularly in realtime to cost controlling.

SAP AG
Primary Cost Element
Primary cost element
Imputed cost element
Secondary Cost Element
Allocation cost element
Assessment cost
element
Overhead surcharge
Order settlement cost
element
Revenue Element
Revenue element
Sales deduction
Account
General Ledger Sub-Ledger
Accounts Accounts
Income Account Bal. Sheet Acct. Mat. Stock Acct.
Expense Account Fxd Asset Acct.
Indirectly
posted account, Customer Acct.
such as Recon-
ciliation Acct. Vendor
Account
Vendor Payables
Account Vendor 1111
1000.-
1000.-
Revenue Account
Directly
posted account, Asset Mgmt.
such as Bank Account
Account
The Cost Element

The expense accounts in Financial Accounting (FI) are recorded as primary cost elements in
Controlling (CO). In order to do so, the primary cost elements must first be created in FI as general
ledger (G/L) accounts before they can be created in CO.
Primary cost elements always require the account posting of a cost-carrying object, such as a cost
center.
Secondary cost elements are used exclusively in CO. They do not use corresponding G/L accounts in
FI and are defined only in CO.
If revenues are to be analyzed in cost controlling, they are recorded as revenue elements in CO, analog
to the primary cost elements. Revenues in Cost Center Accounting can be treated statistically only.
Each cost element is assigned a cost element category in the master data record, determining for which
transactions a cost element may be used for. For example, category 3 (imputed cost element/
surcharge) is used for account assignment of imputed costs in the surcharge accounting framework. An
additional primary cost posting (say, from FI) can also be made through this primary cost element
category.

SAP AG
Automatic Creation of Cost Elements
Default Setting
Acct. From Acct. To Cat. Short Description
400000 415000 01 Primary CElem
.
.
.
510000 42 Assessment CElem

Cost elements can be created automatically. With default settings you can enter cost element and cost
element category.
Primary cost elements are created only if the corresponding G/L accounts exist in the chart of
accounts. The cost element name is taken from the G/L account master data record in FI and can be
changed in CO.
Secondary cost elements must possess an explicit entry. The name is taken from the cost element
category.
The cost elements are created with the aid of a batch input session.

SAP AG
The Cost Center
S01000 S01000
Acme Inc Acme Inc
S01100 S01100
Board of
Managers
1100
Board of
Managers
S02100
Storage Storage
S02200
Energy Energy
S02300
Buildings Buildings
2110
Incoming
Inspection
2210
Strom
1100
Admin
Building
2120
Receiving
2220
Water
1100
Warehouse
Buildings
2130
Shipment
2230
Gas
1100
Production
Buildings
S03000 S03000
S04000 S04000
S02400
Motor Pool Motor Pool
S02000
Logistics Logistics

Each cost center master data record indicates its location in a higher hierarchy area.
The hierarchy area is a collection of several cost centers.
Multiple areas themselves can be collected into higher hierarchy areas, ultimately creating a hierarchy
of cost centers (at the lowest level) and areas (at higher levels).
Cost Center Accounting (CO-CCA) supports parallel administration of as many hierarchy areas as
required.
A selected hierarchy is the standard hierarchy, already defined during the creation of the controlling
area. All cost centers created must be assigned to an area in this hierarchy. This ensures that all cost
centers in the controlling area are collected together in the standard hierarchy.

SAP AG
Cost Center Types
CCtr Type CCtr Type
Production Administration Warehouse
1100 1100
1200
x
x
1300
.
.
x

Cost center types offer the option of assigning similar cost centers a standard characteristic. For
example, you have the option of allowing particular activity types only for particular cost centers. This
is useful for, say, preventing production activities from being posted mistakenly on administrative cost
centers. The cost center type can also be used for imputed cost calculation where, for example, it
decides the amount of the imputed cost percentages.
Special indicators can be stored for each cost center type which then serve as defaults when the
corresponding cost centers are created. These include lock indicators for primary or secondary
postings, revenue postings, etc.

SAP AG
Activity Types
S04100 S04200
Services Services Production Production
Cost Center Repair CCtr Production
Machinists hours Prod. I hours
CCtr Production
Prod. II hours
S01000 S01000
Managers Managers
S04000 S04000

Activity types serve as measurements for cost creation. They are used to carry out internal activity
allocation.
Internal activity allocation is carried out via secondary cost elements, stored in the master data record
of the activity types as default values.
By entering up to eight cost center types (or * for all types) in the activity type master record, you can
delimit the use of the activity type to particular cost centers.
The activity type category determines whether and how an activity type is entered and allocated. For
example, some activities can be allocated directly whereas others are allocated indirectly
(automatically).

SAP AG
Statistical Statistical
Key Fig. Key Fig.
01
02
03
.
.
.
10
11
12
5000
4520
.
.
.
3000
.
.
100
.
.
.
Total 1-12 83.3 23595
Months Months
100
100
100
Employees (Fixed Value) Employees (Fixed Value) Long-Distance Calls (Total Value) Long-Distance Calls (Total Value)

Statistical key figures illustrate activities and key figures of a cost center or a cost center/activity type.
They can be posted to cost centers and orders in plan and actual.
Statistical key figures can be used as the reference basis for periodic transactions, such as distribution
or assessment, for creation of key figures for cost centers and orders.
Two types of key figures are defined:
Fixed value: The value is updated starting from the period entered for all following periods of the
same fiscal year (such as Employees).
Totals value: The value is not transferred to the following period but is to be entered anew in each
following period (such as Long-Distance Calls).
Statistical key figures can be taken from the Logistics Information System (LIS).

SAP AG
Summary: Master Data (1)
In cost element and cost center accounting, the cost
element, cost center, activity type and statistical key
figure master data are managed.
Master data can be grouped together.
Primary cost elements must exist as G/L accounts in
Financial Accounting before they can be defined as cost
elements for controlling purposes. Primary cost elements
can be generated automatically from existing G/L
accounts.
The cost element type assigned to each cost element
determines for which activities a cost element can be
used.

SAP AG
Summary: Master Data (2)
The standard hierarchy groups all cost centers of a
controlling area. Every cost center master record refers to
a node of the standard hierarchy.
For every cost center a cost center type can be specified
in the cost center master record.
Activity types describe the output of a cost center and are
used as a basis for measuring costs by cause.
The activity type determines how an activity type can be
recorded or settled.
Statististical key figures can be posted to cost centers.
They can be taken over from LIS.

SAP AG
Chapter Periodic Allocations
Imputed cost calculation
Periodic reposting
Distribution
Assessment
Indirect activity allocation
Valuation with actual activity prices
Actual cost splitting
Activity price calculation with cost component layout
Transfer of statistical key figures from the LIS

SAP AG
Periodic Allocations in Overview
Imputed cost calculation
Periodic reposting
Distribution
Assessment
Indirect activity allocation
Actual activity price calculation
Transfer of statistical key figures

In the periodic allocation framework, a variety of different methods and functions are available which
will be examined closer in the following unit.

SAP AG
Imputed Costs
Imputed Costs Imputed Costs
Opportunity Costs: Opportunity Costs:
No equivalent in No equivalent in
Outlay Costs: Outlay Costs:
Different equivalent in Different equivalent in
Examples:
- Imp. manage-
ment bonus
- Imp. rent
- Imp. interest
Examples:
- Imp. deprecia-
tion
- Imp. interest
- Imp. risks
Examples:
- Imp. holiday
bonus
- Imp. insurance
- Imp. deduction
Examples:
- Imp. interest
- Imp. material
Other Other
Quantity Quantity
Units Units
Other Other
Price Price
Units Units
Other Sub- Other Sub-
Yearly Settle- Yearly Settle-
ment Periods ment Periods

Organizational expenses often are allocated differently in Financial Accounting (FI) than in Controlling
(CO).
In order to avoid cost fluctuations within Cost Center Accounting, irregularly-occuring expenses should
be allocated appropriate to time and origin to the months in question. This even distribution of an
irregular expense is termed time-based imputed cost calculation.
In the SAP R/3 System, imputed costs can be taken into account in cost controlling for cost centers
(cost centers/activity types). Along with time-based imputed cost calculation, other imputed costs such
as opportunity costs can be included in cost controlling.

SAP AG
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
12,000 12,000 12,000 12,000 .... .... .... .... .... .... .... ....
1200 1200 1200 1200 .... .... .... .... .... .... ....

14,400
Wage Costs
Imputed
vacation
bonus
(10% of
wage costs)
Imputed Cost Object
Period
Imputed cost object and
effective actual costs
- 1200
- 1200
- 1200
- 1200
- 1200
- 1200 + 15,000.-
- 1200
+ 600
01
02
03
04
05
06
. . .
12
Balance:
Rules for Periodic Imputed Cost Calculation
Vacation
bonus paid:
15,000
Imputed Costs: Cost Element Percentage Method

With the aid of the cost element percentage method, imputed costs can be determined on the basis of a
percentage surcharge on a base cost element.
The advantage of this method when compared with imputed cost calculation using continuous posting
to FI is that imputed costs are determined on the basis of the costs actually posted.
This method is useful, for example, in imputed cost calculation of non-wage costs such as holiday
bonuses.
In the imputed cost calculation framework, the amounts of the imputed costs are debited to the cost
centers. Simultaneously, an imputed cost object defined by you (cost center or internal order) is
credited. The effective actual costs are also posted on the imputed cost object in order that a possible
balance between expenses from FI and imputed costs from CO can be calculated, analyzed, and
allocated further.
The cost element percentage method of imputed cost calculation takes place using its own cost element
category (3 = Imputed cost element/surcharge). This means that the cost center debits in addition to the
credit object credits are posted under this cost element.

SAP AG
Defining the Cost Element Percentage Method
Costing Sheet
Rows Basis Surcharge Name From To Credit
10 i-B1 Wages
20 i-B2 Salaries
30 iZ1 Imp. vacation pay 10 20 E1
40
50
.
.
.
.
.
.
.
.
.
.
.
.
.

SAP AG
Costing Sheet
Row Basis Surcharge Name From To Credit
10 i-B1 Wages
20 i-B2 Salaries
40
50
.
.
.
.
.
.
.
.
.
.
.
.
.
Calculation
Base
420000 Prod. Wages
421000 Service Wages

SAP AG
Costing Sheet
10 i-B1 Wages
20 i-B2 Salaries
40
50
.
.
.
.
.
.
.
.
.
.
.
.
.
Calculation
Base
420000 Prod. Wages
Surcharge
Rates
Plan 10%
Actual 10%

SAP AG
Costing Sheet
10 i-B1 Wages
20 i-B2 Salaries
40
50
.
.
.
.
.
.
.
.
.
.
.
.
.
Calculation
Base
420000 Prod. Wages
Surcharge
Rates
Plan 10%
Actual 10%
Imputed Cost
Object
Cost element: 434000 Imp. vac. pay
Order: "Implied Vacation Pay"

The cost element percentage method requires a surcharge layout. The following rules for imputed cost
calculation must be stored there:
For which cost element(s) should surcharges be levied?
Under which cost element should the surcharge be posted?
How high should the surcharge percentage be?
Which imputed cost object whould be credited?
The surcharge layout connects all parts of the cost element percentage method. All the necessary data
can be maintained in the layout.
By using dependencies you have the option of determining the conditions under which a surcharge is
calculated for a cost center. For example, you can post different surcharges to different cost centers
depending on the cost center type. The dependency is assigned to the surcharge key. You can create
user-defined dependencies to join the standard SAP R/3 System dependencies.

SAP AG
Imputed Costs: Target=Actual Method
Plan Cost Center 4310 Cost Center 4310
Activity type PHR 100 hrs
Cost / activity 481000
dependent
Var. Fxd
500.- 500.-
Cost element category 04

SAP AG
dependent
Var. Fxd
500.- 500.-
Act. Activity type PHR 90 hrs (ORate = 90%)
Target Actual
481000 950.-

SAP AG
dependent
Var. Fxd
500.- 500.-
Act. Activity type PHR 90 hrs (ORate = 90%)
Target Actual
481000 950.-
After Imputed Cost Calculation After Imputed Cost Calculation
Cost Center 4310 Cost Center 4310
Plan Target Actual
481000 500.- 500.- 950.- 950.-

The target=actual method is used for imputed cost calculation of activity-dependent costs. Activity-
dependent primary costs are planned using an imputed cost element. After actual costs, target costs are
calculated automatically by the SAP R/3 System on the basis of the operating rate. These target costs
are set in the actual value fields in the imputed cost calculation framework.
If the imputed amount is activity-independent, you can use the plan=actual method, where the complete
plan costs are set in the actual value fields.
As in the cost element percentage method, an imputed cost object (cost center or order) collects the
credits. In customizing, only the credit object and the validity period of the affected cost elements need
to be defined.
The target=actual method uses its own cost element category as well (4 = Imputed cost
element/target=actual). This means that the debited cost centers as well as the credit objects are posted
under this cost element.

SAP AG
Periodic Reposting
Allocation Rule
Statistical key figures
(telephone meter units)
Meter Units Meter Units Meter Units
2000 2000 1000
Administration 1 Administration 1 Administration 2 Administration 2 Administration 3 Administration 3
473100 +6000.- 473100 +6000.- 473100 +3000.-
Communications
473100 +15,000.-
473100 - 15,000.-
Telephone
January

Periodic reposting is used purely as a posting aid.
Primary postings (such as telephone costs) are collected on an allocation cost center and allocated
accordingly at period closing according to an user-defined key.
Only primary costs can be reposted. The original cost element remains intact.
Line items are recorded for both the sender and receiver sides in order to document the allocations
exactly.
Periodic reposting can be carried out as often as desired.

SAP AG
Distribution
Electricity
January
Electricity Cost Center
416100 +23,000.-
416100 - 23,000.-
Distribution Rule
Fixed percentages
30% 20% 50%
Production 1 Production 1 Production 2 Production 2 Production 3 Production 3
416100 +6900.- 416100 +4600.- 416100 +11,500.-

Distribution is intended for primary cost appropriate allocation from cost centers where, in comparison
with periodic reposting, only cost centers may serve as senders.
Primary postings (such as energy costs) are collected on an allocation cost center and allocated at
periods end according to user-defined keys.
Only primary costs can be distributed. The original cost element remains intact.
In comparison to periodic reposting, distribution updates the partner in the totals record so that it may
be identified on the totals record level in the information system.
The sender-receiver information (sender cost center) is updated in the receiver-side line items.
Distribution can be repeated as often as desired.

SAP AG
Assessment
Allocation Rule
Statistical key figure
(employees)
Employees Employees Employees
30 10 50
Production Production Administration Administration Sales Sales
520000 +3000.- 520000 +1000.- 520000 +5000.-
420000 Wages
January
416000 Electricity
613000 Maintenance
Cafeteria
420000 6000.-
416000 1000.-
613000 2000.-
9000.-
520000 -9000.-
Assessment (Cafeteria)

Assessment is designed for the allocation of primary and secondary costs in Cost Center Accounting.
Primary and secondary postings are allocated at period closing according to user-defined keys.
In the assessment framework, the original cost elements are converted to assessment cost elements
(category 42, secondary cost element). The relationship between original and assessment cost element
can be freely determined per segment.
Line items are recorded for the sender and receiver sides in order to document the allocations in detail.
As in distribution, the partner is updated in the totals record during assessment.
Assessment can be repeated as often as required.

SAP AG
Applying Periodic Reposting, Distribution, and
Assessment
Allocation Method Allocation Of Allocation With Allocation With
Information in Information in
Line Items Line Items
Application Application
Periodic
reposting
Primary
costs
Original Original
cost cost
element element
Posting aid for Posting aid for
collecting and collecting and
reposting primary reposting primary
costs costs
Distribution Primary
costs
Original Original
cost cost
element element
Sender and Sender and
receiver receiver
object object
Allocation of Allocation of
primary costs primary costs
Assessment Primary and
secondary
costs
Assessment Assessment
cost element cost element
(= secondary) (= secondary)
receiver receiver
object object
Allocation of Allocation of
primary and primary and
secondary costs secondary costs
receiver receiver
object object

The following information must be stored in the R/3 System for periodic reposting, distribution, and
assessment:
Who wants to settle/allocate the costs?
To whom are the costs settled/allocated?
Which costs are to be allocated?
From a system performance standpoint, periodic reposting is preferred to distribution because no
sender-receiver relationships are recorded on the totals record level during periodic reposting.
Assessment achieves the best results because a conversion freely defined by the user occurs between
debit and credit cost elements.

SAP AG
Defining Periodic Reposting, Distribution, and
Assessment
Cost Center "Admin Building" Cost Center "Admin Building" Cost Center "Administration" Cost Center "Administration"

Allocation Allocation 100% 100% actual costs actual costs Tracing factor: Tracing factor: m m
2 2
floor space floor space
Cost Center "Energy" Cost Center "Energy" Cost Center "Administration" Cost Center "Administration"

Allocation Allocation 30% 30% actual costs actual costs Tracing factor: Tracing factor: m m
2 2
heated space heated space
Cost Center "Energy" Cost Center "Energy" Cost Center "Production" Cost Center "Production"

Allocation Allocation 70% 70% actual costs actual costs Tracing factor: Tracing factor: Gas consumption Gas consumption
per meter reading per meter reading
Standard / same value Same tracing factor determination
determination for senders for receivers
S
e
g
m
e
n
t
S
e
g
m
e
n
t
1 1
S
e
g
m
e
n
t
S
e
g
m
e
n
t
2 2
S
e
g
m
e
n
t
S
e
g
m
e
n
t
3 3
Sender Receiver

The rules for periodic reposting, distribution, and assessment are combined hierarchically in cycles and
segments.
A segment takes sender cost centers, in which values to be allocated are determined according to the
same rules, and combines them with receiver objects, in which tracing factors are determined according
to the same rules.
Multiple segments are combined in a cycle. As a rule you can define a cycle for the entire controlling
area. From system performance and allocation standpoints, however, you also can create several cycles
which are proecessed one after the other. Cycles are created separately for plan and actual allocations.

SAP AG
Combinable Sender and Receiver Rules
Receiver
Fixed
Amounts
Fixed Fixed
Percentages Percentages
Fixed Fixed
Portions Portions
Variable Variable
Portions Portions
Posted
Amounts
Fixed
Amounts
Fixed
Activity Prices
Sender
X X X
X
X X
X X X X
X X
X X
X X
X X
X X
Combinable sender and receiver rules for
periodic reposting, distribution, and assessment

According to the above rules, you can combine sender and receiver relationships in the frameworks of
periodic reposting, distribution, and assessment.
Sender values can be posted amounts, fixed amounts, or fixed activity prices. You have the option of
defining a percentage portions of the amount to be allocated that results in the corresponding residual
amount remains with the sender cost center.
On the receiver side, fixed amounts, fixed percentages, fixed portions, and variable portions can be
stored as rules. The variable portions include, among others, costs, consumption, statistical key figures,
and activities.
Another of the many options available is that of allocating plan costs in actual.

SAP AG
Executing Periodic Reposting, Distribution, and
Assessment
.
.
.
Cycle
Segment Segment
Segment Segment
Segment Segment
Cycle
Segment Segment
Segment Segment
Segment Segment
.
.
.

When executing allocations, you can choose how processing should be carried out. The following
options are available:
Test run
Detailed list
Background processing
After processing finishes a log can be examined in order to control and check the processing run. Any
errors that occurred can be analyzed by means of the SAP R/3 System messages.

SAP AG
Indirect Activity Allocation
Inspection Inspection
Goods receipt Goods receipt
Finished goods Finished goods
Activities can be entered on the
sender object
Cost Center
"Quality Control"
Tester hours Tester hours

SAP AG
Indirect Activity Allocation
Activities can be entered on the
sender object
Activities cannot be entered on
the sender, or only with great effort
Cost Center
"Quality Control"
Cost Center
"Quality Control"

Indirect activity allocation is a tool for automatic allocation of activities in actual and plan.
In contrast to direct activity allocation, you can allocate activities by means of user-defined keys.
Two different processing methods are available, depending on the category of the activity types to be
allocated.
For senders whose activities are not measurable, or measurable only after a great deal of effort, the
activity quantities are determined indirectly from the receiver activities.
Indirect activity allocation, like the other periodic allocation methods, uses segments and cycles in
order to define sender and receiver relationships. The methods are determined per segment and can
appear together in a cycle.

SAP AG
Actual Activity Can Be Entered On the Sender
Allocation Rule
Statistical key figures
(number of testing items)
8000 Items 6000 Items 6000 Items
Production 1 Production 1 Production 2 Production 2 Production 3 Production 3
400 tester hours 300 tester hours 300 tester hours
Cost Center
"Quality Control"
Tester hours 1000 Tester hours 1000 h

Some activity types allow total quantities produced to be determined per sender. With indirect activity
allocation, these posted activity quantities are distributed from the senders to their receivers according
to their tracing factors as defined in the segment.
For activities which can be entered for the sender object, use activity type category 3 (manual entry,
automatic allocation).
The corresponding segment must use the sender rule Posted quantities. The receiver rule may use any
option except Fixed quantities.

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Actual Activity Not Enterable on the Sender
Cost Center
"Quality Control"
Tester hours: 10000 hr Tester hours: 10000 hr
Allocation Rule
(number of test items)
4000 Items 6000 Items
Production 1 Production 1 Production 2 Production 2
4000 tester hours 6000 tester hours

For activity types for which produced quantities cannot be determined, or determined only after a great
deal of effort, activity determination is necessary -
either via receiver tracing factors (with weighting factors which can be defined per sender)
or given explicitly in the segment definition (as a fixed sender or receiver quantity)
This form of indirect activity allocation uses activity type category 2 (indirect entry, automatic
allocation).
The corresponding segment must use either the sender rule Indirectly determined quantities with any
receiver rule, or the identical sender and receiver rules Fixed quantities. If sender rule Indirectly
determined quantities is used, the sender-specific weighting factors named above are determined by
using the function Sender values (default value = 1).

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Valuation at Actual Activity Price
Actual Cost
Accounting
Actual Actual
activity activity
price price
Quantity flow via
activity allocation
Actual activity price
calculation
Revaluate qty. flow
with activity prices

Actual cost allocation does not require cost and activity price planning. The quantity flow is posted
initially without a valuation. The valuation with actual costs takes place at period-end closing through
actual activity price calculation.
If you use a preliminary valuation with plan activity prices, you have the option in actual activity price
calculation of revaluating the difference between the previous plan activity price valuation and the
actual activity price valuation. This can take place either in separate data records or through changing
the existing allocation postings.
Activity price calculation may be carried out with any of the following:
periodic activity price
average activity price
cumulated activity price

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Actual Activity Price Calculation
Cost Center B Cost Center B
Activity Type MHR
Activity 100 hr
Primary Costs
Wages 5000.-
Salaries 5000.-
Energy 1000.-
Secondary Costs
Activity from CCtr A
50 hr
Cost Center A Cost Center A
Activity Type REP
Activity 1000 hr
Primary Costs
Wages 10,000.-
Salaries 5000.-
Energy 1000.-
Secondary Costs
Activity from CCtr B
10 hr
10hr 10hr
50hr 50hr

The example above illustrates the activity price calculation procedure.
The activity price for Cost Center A is determined with the formula:
(16000 + (10 X Activity price of Cost Center B/Activity Type MHR) ) / 1000 hours
The activity price for Cost Center B is determined with the formula:
(11000 + (50 X Activity price of Cost Center A/Activity Type REP) ) / 1000 hours
The exact activity type price is calculated iteratively.

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Actual Cost Splitting
Dividing actual costs to
activities
Precondition for actual
activity price calculation
and variance analysis
Plan and actual made
comparable at the
activity level
Cost Center
Production
Produc-
tion
hours
Machine
hours

Actual costs in Cost Center Accounting can be posted only to cost centers, not to activity types. In
order to carry out actual activity price calculation, however, the actual costs must be distributed to the
activity types. Actual cost splitting is required for the comparison of actual costs with target costs and
comparison of variances in the activity types.
Actual costs are split in two steps -
Step 1: Actual cost center costs are broken down according to the target costs onto the activity types.
This step is made per cost element. If no target costs exist for a cost element, the splitting takes place
according to the target costs of the assigned cost element group. All target costs of cost elements in this
group are drawn upon as a basis for splitting. If no target costs exist in the entire group, the costs are
split in the second step.
Step 2: Remaining actual cost center costs are broken down according to definable splitting rules onto
the activity types. If no rules are defined, the cost center costs are divided according to equivalence
numbers onto the individual activity types.

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Activity Prices with Cost Component Layout
Switch layout
Personnel
Primary Energy
Secondary
Material

Personnel

Sec. Energy
Sec. Material
Sec. Mat.
Material Material
Energy Energy

With activity price calculation using the cost component layout you have the option of making the
structure of an activity type price transparent. This is useful, for example, for determining the portion of
personnel costs and secondary material costs included in the activity type price.
You have the option of deactivating the cost component layout for particular cost centers/activity types.
This is done by using the switch layout.

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Transferring Statistical Key Figures from the
Logistics Information System
4000 Purchase Orders 4000 Purchase Orders
Procurement Procurement
Stat. key figure: Stat. key figure:
Number of Number of
purchase orders purchase orders
Ship.No. No. of Orders
0005
0100
1500
2500
Ship.No.: 1 - 1000 Ship.No.: 1 - 1000
Material No.: * Material No.: *
Procur. Org.: * Procur. Org.: *
... ...

You can transfer key figures recognized by the LIS to cost accounting as statistical key figures, for use
as, for example, a reference basis for allocations.
The preconditions are:
You have activated the LIS
You have created statistical key figures and activated the LIS interface in the corresponding master
data records
Statistical key figures can be transferred as activity-independent or activity-dependent to Cost Center
Accounting.

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Summary
The SAP R/3 System offers a variety of techniques for
carrying out periodic allocations:
- Imputed cost calculation
- Periodic reposting
- Distribution
- Assessment
- Indirect activity allocation
By using valuation with actual activity prices, you can
revalue the quantity flow from activity allocations at the
end of the relevant period.
Actual cost splitting is the precondition for actual activity
price calculation. Actual costs are thereby divided among
the activities.
Statistical key figures can be transferred from the
Logistics Information System (LIS).

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Chapter Planning in Cost Center Accounting
Goals of cost center planning
Planning scope and techniques
Versions
Arranging the planning screen
Flexible selection of the planning views
Distribution key
Detailed planning and base object costing
Plan reconciliation
Plan cost splitting
Activity price calculation
Budget management
Planning aids

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Goals of Cost Center Planning
Planning structures for
the companys future
Managing
business strategy
Economic management

The goals of cost center planning can be divided into three groups:
Planning the organizational future for a particular timeframe
Managing the business strategy during the current settlement period
Checking the companys competitiveness after closing the settlement period
To achieve these goals, the SAP R/3 System offers a wide variety of intruments to choose from.

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Planning Scope and Techniques
Planning Scope in Cost Center Accounting
Statistical Key Figures Statistical Key Figures
Manual
Stat.
key
figure
planning
Automatic
Transfer
from LIS

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Activity Type Activity Type
Manual
Activity
type
planning
Automatic
Indirect
activity
allocation
Statistical Key Figure Statistical Key Figure
Manual
Stat.
key
figure
planning
Automatic
Transfer
from LIS

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Costs Costs Activity Types Activity Types
Manual
Activity
type
planning
Automatic
Indirect
activity
allocation
Statistical Key Figures Statistical Key Figures
Manual
Stat.
key
figure
planning
Automatic
Transfer
from LIS
Manual
Primary
Activity-
independent
primary cost
planning
Activity-
dependent
primary cost
planning
Secondary
Activity-
independent
secondary
cost planning
Activity-
dependent
secondary
cost planning
Automatic
Primary
Imputed costs
Distribution
Periodic
reposting
Secondary
Assessment
Indirect
activity
allocation

Cost center planning distinguishes between:
Planning statistical key figures
Planning activity types
Planning value-based and quantity-based primary and secondary costs as well as planning revenues
These planning techniques and their usage will be examined in the course of this unit.
At the end of this unit is an illustration of a possible planning procedure which is suggested if you are
to use all the planning techniques listed above.

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Arranging the Planning Screen
Distribution
Administration
Production
User
Profile Layout Planning Scope
CElem
ATyp
CCtr
ATyp
ATyp
CCtr
Cost Center
Cost elem. Value
Cost Center
Cost elem. Value
Actv. type Value
+
+
CCtr
CElem
CElem

Entering CO plan data is accomplished with entry screens which can be arranged as desired in system
configuration for planning. These screens are known as planning layouts.
Planung layouts include one planning area each. They can be used to define multiple lead columns as
well as arranging the value columns as well.
Via the planner profiles, you can control the shape and extent of planning. Layouts are assigned to the
planner profiles, making authorizations for planning manageable through assigning authorization
groups to a profile.
Standard planner profiles and planning layouts that cover most if not all of the possible planning
situations are included in the standard SAP R/3 System. You also have the option of defining your own
profiles and layouts.

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Flexible Choice of Planning Views
S04000 S04000
S04100
Services Services
Cost Cost
Center Center
4110 4110
Cost Cost
Element Element
420000 420000
S04110
Machinist
. . .

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S04000 S04000
S04100
Services Services
Cost Cost
Center Center
4110 4110
Cost Cost
Element Element
420000 420000
S04110
Machinist
. . .
Cost Cost
Center Center
Group Group
S04200 S04200
Cost Cost
Element Element
Group Group
"Wages" "Wages"
S04200
Area AI Area AI
S04220
Line I
S04220
Line II
S04220
Line III
420000
421000
430000
431000
434000
435000

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S04000 S04000
S04100
Services Services
Cost Cost
Center Center
4110 4110
Cost Cost
Element Element
420000 420000
S04110
Machinist
. . .
Cost Cost
Center Center
Group Group
S04200 S04200
Cost Cost
Element Element
Group Group
"Wages" "Wages"
S04200
Area AI Area AI
S04220
Line I
S04220
Line II
S04220
Line III
S04300
Area BI Area BI
S04400
Area CI Area CI
. . .
S04220
Line III
. . .
. . .
420000
421000
430000
431000
434000
435000
4430 4430
Cost Element Cost Element
Group "Wages" Group "Wages"
420000
421000
430000
431000
434000
435000

With the aid of the flexible entry screens, it is possible to carry out central planning (such as planning a
cost element for all cost centers) as well as decentralized planning (such as planning for individual cost
centers). Similarly, the planning views for planning activity types and statistical key figures may also be
chosen.
Depending on the arrangement of the entry screen, the option exists when entering the screen of using
individual values, intervals, or groups. SAP recommends creating cost element or cost center groups for
future use in the R/3 System.

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Versions
Version 000 Version 000
Year Locked Line Items . . . Rate Type . . .
1994 X X
1995
1996
1997
1998
Version 001
Version 002

A closed cost plan is always found in a version within the SAP R/3 System.
When creating a controlling area, the R/3 System automatically creates version 000, which is valid for
five fiscal years.
Actual data is always referred to through version 000.
To create alternative plans, you can define new versions.
You can undertake basic settings in the version affecting planning in general, including:
Locking the version
Releasing a version for copying or preventing any copying
Storing exchange rate types for currency translations
Activating planning integration
Making settings for activity price calculation

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Standard Distribution Key: Excerpt (6,7)
Given period value is Total value distributed
copied to the following to the periods according
periods to the number of
calendar days
O: 24,000 P Old Entry New 24,000 24,000 P Value
N: 31,000 1 2000 2000 1 2032.79
2 2000 3000 3000 3000 2 1901.64
3 2000 3000 3 2032.79
4 2000 3000 4 1967.21
5 2000 3000 5 2032.79
6 2000 3000 6 1967.21
7 2000 2500 2500 2500 7 2032.79
8 2000 2500 8 2032.79
9 2000 2500 9 1967.21
10 2000 2500 10 2032.79
11 2000 2000 2000 2000 11 1967.21
12 2000 2000 12 2032.79
Distribution Key 6 Distribution Key 7

For period-appropriate distribution of total values, you require a distribution key.
Keys are stored in the standard SAP R/3 System which are useful for distribution of complete values
according to different criteria.
In addition to the standard distribution keys, you can define as many company-specific distribution keys
as desired (for example, according to shift plans).

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Planning Statistical Key Figures

= 18 Employees
= 1200 Telephone meter
units
. . . . . .
Cost Center: Motor Pool Cost Center: Motor Pool

Statistical key figures can be planned in order to -
construct managerial key figures for cost centers
prepare receiver tracing factors for internal allocations

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Detailed Planning and Base Unit Costing
Primary Cost Element 420 000 / Wages
Employees Category A 20,000.-
Employees Category B 5000.-
Employees Category C 2000.-
All Employees 27,000.-

In the activity-independent primary cost planning framework, detailed planning makes planning
beneath the cost element level possible. You can, for example, differentiate the cost element Wages
into different employee categories with detailed planning. The results of detailed planning are
identified on the cost element level.
Detailed planning can also access base unit costing, an application used in Logistics but with partial
application in Controlling. Base unit costing can be used to make cost-based planning for a single
object made up of several raw materials, internal activities, or unfinished products (for example,
internal service activities).
If you want to use detailed planning, please note the following.
Detailed planning can be carried out only in controlling area currency.
The results from detailed planning can only be evaluated in cost center planning, not in the
information system. Cost center planning carries out identification on the cost element level.
Values created in detailed planning may only be changed in detailed planning.
If detailed planning is used for the first quarter of a fiscal year, the entire year must be planned with
detailed planning as well.

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R
Plan Clearing Procedure (Corresponding to Actual)
Selection: cost element percentage method
Periodic transfer to plan
Plan distribution
Plan assessment
Indirect activity allocation to plan

Using the cost element percentage method within the framework of plan selection, you can plan
imputed costs in Cost Center Accounting.
Periodic transfer is envisioned as a posting tool to allocate primary postings from one CO object (such
as collection cost center) to another. The basis for these allocations are keys that can be defined by the
user.
Plan distribution is generally chosen for costs that are entered in a collection cost center and are
allocated to the cost centers where they originated using distribution. As in actual, allocation is
performed using the cycle segment technique with keys like statistical key figures or fixed
percentages.
Like plan distribution, plan allocation allows you to allocate costs from one cost center to another
using keys such as statistical key figures.
With indirect activity allocation, activities can be allocated automatically. There are two different
methods for doing this:
- Activities may be entered in the sender cost center
- Activities may not be entered in the sender cost center at all or entered with a great deal of difficulty

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Activity Type Planning
CCtr 4000 Production A
Activity Type "Production Hours 1"
Plan activity 10,000 hrs
Cost element 615 000
Equivalence number 1
Activity price: Fixed _____ Variable _____
Activity Type "Production Hours 2"
. . .
. . .
. . .
. . .

Activity types serve as activity controls for cost centers. They are used to describe the quantity output
of a cost center and can be used to determine an operating rate and target costs.
Activity types are allocated under a secondary cost element, which is stored as a default value in the
activity type master data record.
The activity type allocation price is either determined per cost center/activity type in automatic activity
price calculation or is determined manually. In automatic activity price calculation, all primary and
secondary costs planned as activity-dependent or activity-independent for the appropriate cost centers
are included in the allocation price. Cost center costs are divided by the plan activity or plan capacity.
If several activity types are planned on a cost center, the activity-independent plan costs are broken
down (split) onto these activity types for activity price calculation.

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Activity Price Calculation
Cost Center B Cost Center B
Activity Type MHR
Plan Activity 100 hr
Primary Costs
Wages 5000.-
Salaries 5000.-
Energy 1000.-
Secondary Costs
Activity of Cost Center A
50 hr
Cost Center A Cost Center A
Activity Type REP
Plan Activity 1000 hr
Primary Costs
Wages 10,000.-
Salaries 5000.-
Energy 1000.-
Secondary Costs
Activity of Cost Center B
10 hr
10hr 10hr
50hr 50hr

The example above illustrates the activity price calculation procedure.
The activity price for Cost Center A is determined with the formula:
(16000 + (10 X Activity price of Cost Center B/Activity Type MHR) ) / 1000 hours
The activity price for Cost Center B is determined with the formula:
(11000 + (50 X Activity price of Cost Center A/Activity Type REP) / 1000 hours
The exact activity type price is calculated iteratively.
If you use manual activity prices in addition to iterative prices, you have the option of setting an
indicator in the version which allows the purely iterative activity prices to be calculated in addition.

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Planning Aids
Copy planning
Revaluation
Transfer of plan values from other applications

Within cost center planning, you can find planning aids that simplify planning tasks.
The Copy planning function gives you the option to copy planned values selectively from one plan
version to another.
Revaluation can increase or reduce planning results as a percentage.
In the framework of planning integration, you can transfer data from systems external to cost center
accounting directly to cost center planning.

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Transfer of Plan Values
Personnel costs Personnel costs
Depreciation / interest Depreciation / interest
Statistical key figures Statistical key figures
Activity requirements Activity requirements
Asset Management
Human Resources
AM AM
HR HR
PP PP
Logistics Information System
(LIS)
Production Planning
C
O
S
T

C
E
N
T
E
R

P
L
A
N
N
I
N
G

Planning integration allows transfers of data from Cost Center Accounting feeder systems to cost center
planning.
If this data was planned in the feeder systems and is to be transferred unchanged to cost center
planning, the planning of the corresponding data in Cost Center Accounting is not necessary.
To use planning integration, various preconditions in Cost Center Accounting and in the feeder systems
must be met first. For example, the personnel costs in Human Resources can be transferred to primary
cost planning in Cost Center Accounting only if valid cost centers are available to which the affected
personnel master data records are assigned.

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Summary (1)
In order to plan statistical key figures, activity types, and
costs, the SAP R/3 System provides a wide variety of
instruments to choose from.
Complete planning takes place in a version in the SAP
System. Along with this version, any number of alternative
plans are possible.
The planning screen can be arranged according to
individual taste.
You have the option of adjusting the planning views to
meet your special requirements.

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Cost Center Accounting Planning
Summary (2)
The distribution key supports period-based distribution of total values.
You can use detailled planning and base object costing in the activity-
independent primary cost planning framework.
The SAP R-3 System offers various planning aids:
- Copy planning
- Revaluation
- Transfer plan values from other applications

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Chapter Activity-Based Costing
Process flow view versus cost center view
Purpose and goals of activity-based costing
Model of activity-based costing in the SAP R/3
System

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Process View versus Cost Center View
Process Process
Purchasing Purchasing Accoun- Accoun-
ting ting
Sales Process
Shipping
Order Creditors
Debitors

Analysis and optimization of business processes is being pursued energetically by many companies in
widely differing industries. Along with optimization of lead times and quality, cost reduction is the
focus of interest.
The traditionally-oriented Cost Center Accounting assigns overhead costs according to organizational
structures and responsibility areas. Activity-Based Costing (ABC) examines them according to the
process organization in which they are assigned to business processes. ABC makes monitoring of the
cost effects of business process optimizing possible.
Whereas Cost Center Accounting answers where costs occur, ABC answers the reasons why.
In contrast to Cost Center Accounting, which requires local cost optimization procedures for cost
centers, ABC makes the effects of decisions transparent for the entire organization.
For example, Procurement decides to simplify order settlement. Accounting thereby has greater
expenditures in accounts payable. This is visible after viewing the procurement business process.

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Activity-Based Costing Model
Cost Centers
Cost Objects
Financial Financial
Processes Processes

In a simplified illustration of general cost allocation, the direct costs from feeder systems are posted
directly on cost objects while cost center overhead costs are assigned according to responsiblities.
Traditionally, overhead costs are allocated with various methods (surcharges, assessment, activity
accounting, etc.) from cost centers to cost objects. Such allocation is frequently not based on the cost
originator. Rather, as with surcharges, it is based on the ratio of overhead costs to direct costs. This
can results in a false indentification of product costs resulting in mistaken decisions. The growing
quota of overhead costs among total costs makes appropriate allocation of costs to their origins ever
more important.
With ABC you have the option of first allocating overhead costs from cost centers to processes, and
afterwards assigning the costs to cost objects based on the originators and the actual consumption of
processes.
ABC does not replace Cost Center Accounting, but rather complements it with another view of
overhead costs. Direct assignment to processes (say from FI) while avoiding Cost Center Accounting
entirely is not planned at this time.
The CO-ABC component is integrated fully in the SAP R/3 System , allowing you access to a
transaction-oriented, cross-functional examination of the organizational cost structures.

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Transparency Transparency
Resource consumption Resource consumption
of processes of processes
Capacity use of Capacity use of
indirect areas indirect areas
Complexity costs Complexity costs
Costs of product and Costs of product and
process changes process changes
Parallel quantity and Parallel quantity and
value flow value flow
Purposes and Goals of Activity-Based Costing
Efficiency Efficiency
Continuious Continuious profitability profitability
monitoring of internal monitoring of internal
processes processes
Interface management Interface management
through process-oriented through process-oriented
thinking thinking
Reduction in overhead Reduction in overhead
through corporate through corporate
reengineering reengineering
Costing Costing
Strategic cost view Strategic cost view
Origin-appropriate Origin-appropriate
allocation of internal allocation of internal
activities activities
Determination of information relevant to Determination of information relevant to
managerial decision-making managerial decision-making
Avoidance of strategic managerial mistakes Avoidance of strategic managerial mistakes

Due to the huge percentage rise in overhead costs in recent years, traditional function-oriented cost
center accounting no longer suffices to control overhead costs efficiently.
Activity-based costing improves overhead cost transparency. It is an important requirement for more
efficient shaping of business processes. On the basis of origin-appropriate allocation of internal
activities in costing, expenses arising from a change in product or methodology can be costed more
precisely.
CO-ABC enables intuitive modelling of organizational process chains and business processes.
Improved transparency results in an entirely new information base which you can use to make
complex decisions.

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R
Chapter Internal Orders:
Master Data and Structures
Managerial aspects
Organizational presentation
Substitution rules
Order types
Status management

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Internal Orders
Internal Orders
Results analysis Results analysis
orders orders
Cost Accounting Functions Cost Accounting Functions
Orders with Orders with
revenue revenue
Overhead cost Overhead cost
orders orders
Capital- Capital-
investment orders investment orders

Internal orders in the SAP R/3 System describe simple actions within a controlling area. Orders support
action-oriented planning, monitoring, and allocation of costs.
Internal orders may be used for a variety of purposes:
Control of internal actions settled to cost centers
(= overhead cost order)
Control of internal actions settled to fixed assets
(= investment order)
Inclusion of offset postings of imputed costs calculated in CO
(= imputed cost order)
Display of cost controlling parts of SD customer orders and inclusion of revenues not affecting the
core business of the company
(= order with revenues)
Combined forms of overhead cost orders and internal orders exist as well.

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MMM
M MM
MMM
M MM
Advantages of Internal Orders
Cost Center
l _____________
l _____________
l _____________
l External Costs
l Internal
Activities
Cost Center
l _____________
l _____________
l _____________
l External Costs
l Internal
Activities
Without orders
With orders
Trade
Fair 1
Trade
Fair 1
Trade
Fair 2
Trade
Fair 2
EXTERNAL COSTS
Internal Activities
Ext. Costs
Internal
Activities
External Costs
Internal Activities
Ext. Costs
Internal
Activities
1
2
Settlement
Settlement
Order 1 Order 1
Ext: Ext:
Int. Activities Int. Activities
Order 2 Order 2
Ext: Ext:
Int. Activities Int. Activities

This example illustrates the main purpose of internal order use in Overhead Cost Controlling. In the
first case, after concluding both actions (here, measurement), no further comparison analysis can take
place. Because external costs and internal activities are treated with the same cost elements on the same
cost center, it is no longer possible to determine which action created which costs. If, however, each
action receives its own internal order, as in the second case, the costs can be collected separately and
analyzed afterwards - even if settlement on the cost center has been executed already.
A further advantage is found in the wide variety of planning and budgeting functions offered for orders.

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Order Master Record
Assignments
Company Code
Business Area
Plant
Controlling Area
Profit Center
WBS Element
- - -

The internal order is assigned to a company code and a controlling area, like the cost center. If you
want to create business area balances in Financial Accounting, you must also enter a business area.
If you wish to transfer values posted on internal orders to a profit center, you enter the profit center in
the order master record. All actual postings to the internal order are passed along automatically to the
profit center. Plan values also may be transferred to profit center planning if required.
If you assign an order to a WBS element, you can monitor the value of the order in the project system
orders. In addition, you have the option of highlighting the settlement of all orders assigned to the
project automatically during project settlement.
The remaining criteria possess informative value, meaning they can be evaluated in the internal order
information system. This information has no influence on the posting of plan or actual costs.

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Order Type Functions
Control Control
Commitments management
CO partner update
Revenue postings
Classification
Planning integration
Reference
Order type Order type
- Settlement profile
- Planning profile
- Status structure
- Reference request
external internal
Number assignment
Numbers Numbers
Required entry
Optional entry
Display only
Hide
Field selelction Field selelction
Field . . .
Status Status
Status structure
Order Order
Liste
X
X
X
X
X
X
X
7
12
718
2
34
0

The most important indicators and parameters for default values, number assignment, field selection,
and status administration are found in the order type.
The indicator CO partner update can have a large impact on system performance; activate it only
when absolutely necessary.

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Status Management for Internal Orders
System
status
Set Set
automatically automatically
SAP
Set Set
manually manually
User
Active
status
Transactions
Transactions
REV. WARN. UPDT.
1 X
2 X
3 X
4 X
REV. WARN. UPDT.
1 X
2 X
3 X
4 X
Order
Transactions
REV. WARN. UPDT.
1 X
2 X
3 X
4 X

Status management controls which business transactions are allowed for an order at any given time.
The standard SAP R/3 System includes certain system status settings that are active for an order, for
example, when it is released or when settlement rules are entered, or whether an order has been closed.
If the standard system status settings are not detailed enough, you can create user-defined status
indicators for further subdivisions. For example, it may be necessary to switch to a planning approval
procedure for very large orders before they are released.

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Order Groups
Painter Painter Electrician Electrician Locksmith Locksmith
30 31 32
44 45 46
33 42 43
Area A Area C Area B
INST01 INST01
Plant Maintenance

As in Cost Center Accounting, you can gather internal orders in hierarchically arranged order groups.
Groups maintenance is also similar to the Cost Center Accounting maintenance function.
You can assign an order to several groups. However, in contrast with Cost Center Accounting, it is not
possible to define a standard hierarchy.
Order groups offer the option of planning and settling costs, calculating surcharges, and creating reports
for as many combinations of orders as desired.

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Order List
Selection Variant
Order number
Responsible cost center
Order type
. . .
Order list
Order Text Responsible cost center
4711 Repair A 4250
8023 Repair 4250
9738 Repair 4250
BASIC DATA
Detailed information
about individual orders
VIEWS
Additional information
about the list
Create
order group

Selection variants are used to collect orders according to various criteria in order to settle or report on
the entire group. Along with using the order fields, you can -
define Boolean rules for selection
select according to the order classification data
choose according to the order settlement receivers
The selected orders can be combined at the touch of a button to an order group for use in creating, for
example, the standard reports for the group.

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Substitution Rules for Orders
Example:
For Order type 0100 and
Responsible cost center 4520,
Profit Center 1000
should always be entered.
1. Prerequisites
<Order type> = '0100'
<Resp. cost ctr> = '4520'
2. Substitution
<Profit Center> = '1000'
Order Collective Processing Order Collective Processing
Substitution Rule
Automatic Changes Automatic Changes
According to the Substitution Rule According to the Substitution Rule

Order collective processing offers comfortable options for changing multiple orders in one step.
The precondition, as when working with the order list, is the definition of a selction variant that
includes the orders to be processed.
The definition of substitution rules is used to undertake collective changes for orders based on any
desired criteria.

SAP AG
R
Summary
You use SAP R/3 System Internal Orders to monitor costs according to actions taken
before they are allocated further. Controlling transparency is enhanced by Internal
Orders when compared to simple cost center accounting.
In the internal order master record you can store a profit center and a WBS element.
Actual and plan values in the order can be copied to the profit center. You can
include the orders assigned to the project in reporting and when settling the project.
You can edit several orders simultaneously in the master data. Using substitutions
(user-defined replacement rules), you can execute mass changes for the orders.
The order type is the central control parameter in customizing. Here you store,
among others, the rules for number range assignment, a sample order as a copy
reference, and information on status administration.
Order status determines which management transactions are to be carried out on the
order at a particular time. Along with the SAP default system status, you can
undertake further delimitations of the valid transactions with a user status structure.

SAP AG
R
Chapter Internal Orders:
Actual Postings and Commitments
Commitment management
Overhead surcharges
Settlement: Functions
Settlement: Special features for capital investment
orders
Statistical orders

SAP AG
Orders: Flow of Values
Material
Management
Controlling
External
Accounting
Internal Accounting
Internal orders Internal orders
n n Maintenance Maintenance
n n Investment Investment
n n Repairs Repairs
n n etc. etc.
Deliveries Deliveries
Services Services
Withdrawal Withdrawal
Internal activities Internal activities
Overhead Overhead
n n G/L account G/L account
n n Asset Asset
n n Cost center Cost center
n n Order Order
n n Project Project
n n Prof. segment Prof. segment
n n Network Network

Order debiting occurs due to:
Primary cost postings to FI
Movement of goods (procurement orders, goods receipt, reservations, or goods issue) in Materials
Management
Internal activity allocation, primary cost and revenue reposting, and overhead cost surcharges in
Controlling
Order crediting occurs due to settlement to receivers in external accounting (G/L account, asset) or
internal accounting (cost center, order, project, network, profitability segment). It is not necessary to
settle an order.

SAP AG
Commitments Management: Overview
Purchase requisition Purchase requisition
or purchase order or purchase order
Material Wood beams
Quantity 50 pc
Price 10/pc
Order Order 4712 4712
0 0 0 0 0 0
0 0 0 0 0 0
Order 4712: Repairs Order 4712: Repairs
CElem CElem Cmnt Cmnt Actual Actual Allotted Allotted
Order
400000 400000 500.- 500.- 0 0 500.- 500.-
500.- 500.- 0 0 500.- 500.-
Order
Plant: ABC
Storage location: XY
Material: Wood beam
Quantity: Quantity: 50 pc 50 pc
400000 400000 0 500.- 0 500.- 500.- 500.-
0 0 500.- 500.- 500.- 500.-
Order

Commitments management gives an overview of costs that will be posted on your order in the near
future. At this time, a commitment can be placed on an order if a procurement or material order is
entered for the order. The constant precondition for the commitment is that the corresponding option is
selected in the desired order type and that commitments management is active for the controlling area.
In the information system, the commitment is identified separately. The column Available shows the
total of actual and commitment. In addition, the commitment origin (procurement or order) is stated.
The graphic displays the commitment structure through goods receipt. If, however, the indicator
Unevaluated goods receipt is set in the order item, the commitment is created only after the billing
arrives.
For non-quantifiable activities, or those quantifiable only after much effort, the option exists of making
the commitment proportional to value, not quantity. The deciding factor here is an indicator in the
quantity unit.

SAP AG
Real vs. Statistical Orders
Order Order
"Real" order
Statistical order
Docu-
ment
Order Order
Docu-
ment
Posting
Posting
Posting
Settlement
Cost center
Cost center

No settlement takes place for a statistical order. You see the costs directly on the cost center based on
the transaction.
From a system performance standpoint you are spared the effort of settlement, but a posting to a
statistical order is somewhat less useful than that to a real order.
The cost center to be posted can be stored in the order master data record. The entry of the cost center
need not be performed for later postings.

SAP AG
Overhead Costing
Direct material costs
+ =
Material overhead
Direct labor costs
+ =
Production overhead
Overhead
Costing Sheet
Material costs
+
Production costs
=
Manufacturing costs
+
Administrative overhead
+
Sales overhead
=
Cost of goods sold

Overhead costing is used to allocate overhead costs. The SAP R/3 System offers the option, alongside
that of the pure full cost basis, of dividing the surcharge amounts according to fixed and variable
components - similar to those of the originating cost elements. It is equally possible to calculate
surcharges oriented towards the quantities posted in the documents.
The rules for surcharging (meaning which cost elements are to be surcharged, which cost centers or
orders are to be credited via the surcharges, etc.) are gathered together in a surcharge costing sheet.

SAP AG
Surcharges
Surcharge Costing Sheet
Calculation base
Cost element
Origin
Surcharge fixed or variable cost elements only?
Proportional surcharge
Percentage rates
Dependencies
Quantity-related surcharge
Amount per quantity unit
Dependencies
Credit
Cost element
Origin
Object
Fixed/variable breakdown of surcharge cost elements
Order Order

The surcharge costing sheet combines three central elements:
1. The calculation base defines which cost elements are to be surcharged. An origin field enables
you to
differentiate according to different materials posted under the same cost element to the order.
2. The surcharge defines:
- The percentages used on the different calculation bases as surcharges, or the amounts per quantity
unit used as surcharges. In the latter case, quantities must be recorded in CO. Either the cost element
must record the quantity, or the material master indicator Material origin must be set. Mateirals
with differing quantity units must be differentiated extra in the origin group field if they are to be
updated together under the same cost element.
- The dependencies. Via dependencies, you have the ability to differentiate surcharges according to
plants, company codes, locations, and other criteria.
3. The crediting defines which objects (cost centers or internal orders) are credited under which cost
elements when surcharges are calculated.

SAP AG
Settlement: Overview
Rechnung
+

x
%
Costs Costs Invoices Invoices Surcharges Surcharges
Cost Order WBS Sales Asset Net- G/L Profitab.
center element order work acct. segment
Order Order

The costs gathered on an order can be settled on a great variety of account assignment objects.
In customizing you define the valid receivers for each order type using different settlement profiles.
Order settlement is not a mandatory requirement.

SAP AG
Settlement Rules in the Order
Settlement profile Settlement profile
Settlement structure Settlement structure
Profitability structure Profitability structure
Source structure Source structure
Hierarchy number Hierarchy number
Receiver Receiver
Distribution rule Distribution rule
Distribution type Distribution type
M
A
S
T
E
R
D
A
T
A
S
E
T
T
L
E
M
E
N
T
P
A
R
A
M
E
T
E
R
S
D
I
S
T
R
I
B
U
T
I
O
N
R
U
L
E
Cost center or G/L account Cost center or G/L account
Cost element Cost element
or or

The settlement profile, settlement structure, PA settlement structure, and source structure are suggested
as a rule based the order type. Their functions are described in more detail on the following pages, as is
the hierarchy number.
Settlement rules determine the following.
Which portions are to be settled to which receivers.
How costs are to be apportioned - percentage-based or amount-based division are possible, or the
division according to equivalence numbers.
The settlement type PER serves to settle the costs of exactly one period, which makes sense for all
settlements within Controlling. The settlement type ALL settles all costs on a sender object up to the
settlement period, which is used for settlement to external receivers such as assets or profitability
segments.
To settle an order to exactly one cost center or G/L account, you can maintain the settlement rule
directly in the order master data record.

SAP AG
Settlement with Source Assignment
Customizing: Source Structure
U12:
420 000 - 429 999
U11:
400 000 - 419 999
Receiver 1 Receiver 1
65,000.- 65,000.-
Receiver 2 Receiver 2
500,000.- 500,000.-
Order
Settlement rule:
Source structure: U1
Rules
OAss OAss U11 U11 Rcvr Rcvr 1 Rcvr Rcvr 1
OAss OAss U12 U12 Rcvr Rcvr 2 Rcvr Rcvr 2
Cost elements
410 000 410 000 60,000.- 60,000.-
415 000 415 000 5000.- 5000.-
420 000 420 000 500,000.- 500,000.-

To settle to different receivers dependent on the originating cost elements posted on an order, use the
source group technique. Cost elements in the source structure are grouped according to source groups,
and the structure entered in the order settlement parameters so that the settlement rules can differentiate
according to structure. It then becomes possible, for example, to treat external and internal activities
separately during settlement.

SAP AG
Hierarchical Settlement
Repair order Repair order
Hierarchy 100 Hierarchy 100
Costs... Costs...
Settlement 651000 20,000.- Settlement 651000 20,000.-
Maintenance order Maintenance order
Costs ... Costs ...
Settlement 652000 1000.- Settlement 652000 1000.-
Order: Turbine Order: Turbine
651 000 Repair 651 000 Repair
652 000 Wartung 652 000 Wartung
Order: Cooling Order: Cooling
.... Repair .... Repair
Order: Power station Order: Power station
Repair Repair
Repair order Repair order
Costs ... Costs ...
Settlement 651000 20,000.- Settlement 651000 20,000.-

Hierarchical settlement can be used, for example, to display summarized information on the purpose of
the partial orders (such as repairs, maintenance, etc.) on an end order.
For smaller hierarchies, a hierarchical settlement can replace order summarization as long as no other
receiver is absolutely necessary.

SAP AG
Order type Order type
Planning integration
Settlement profile Settlement profile
proposes
Settlement structure Settlement structure
(source -> settlement cost element)
PA settlement strcture PA settlement strcture
(cost elements -> PA value fields)
Source structure Source structure
(settlement by cost element)
determines
allowed settlement receiver
allowed distribution methods
(% rates, equivalence numbers, amounts)
"Do not settle" indicator

The central control parameter for settlement is the settlement profile, which is entered in the order type
and gives the settlement structure, PA settlement structure, or source structure for the orders of that
type.
The settlement structure controls the assignment of original cost elements to settlement cost
elements according to the individual receivers. The option of settling according to cost element also
exists.
The PA settlement structure controls the assignment of cost elements to value fields in Profitability
Analysis. It is used only if you settle internal orders directly to profit.
If you want to settle to different receivers dependent on the original cost elements posted on the order,
use the source structure.
To settle orders in planning, set the parameter planning integration in the order type. For more
information on this parameter, see the unit on Internal Orders: Planning and Budgeting.

SAP AG
Settlement Structure
Cost elements
Material (ext.)
400000
400100
400200
Material (int.)
410000
410100
Labor
420000
420100
$
Receiver
Cost center
Oper. profit
. . .
Fixed asset
Cost center
Oper. profit
. . .
Fixed asset
Cost center
Oper. profit
. . .
Fixed asset
Settlement
cost elements
650000
650100
811000
651000
811000
... or ... Cost element
related
X

The settlement structure controls the conversion of cost elements to settlement cost elements, making
the option of cost element based settlement possible. It is especially useful, for example, in settlement
of external activities (such as material procurement) to external receivers (such as assets) because the
swelling of the profit and loss accounts due to ongoing activation costs does not occur. You should note
nevertheless that cost element based settlement will have negative results on system performance
during the settlement run.
Similarly, the PA settlement structure converts cost elements into the value components used in
Profitability Analysis. It is required only if settlement to a profitability segment is to take place.

SAP AG
Cost center
Investment Orders
Capital Investment Measure Capital Investment Measure
Order
Asset under construction
Asset history
sheet
Periodic
settlement
Asset 1 Asset 1
Asset 2 Asset 2
Asset 3 Asset 3
Activities during the
construction phase
Final
settlement

The illustration of capital investment operations is offered by the SAP R/3 System application
Investment Management (IM), which can be used to create orders automatically including an asset
under construction. The precondition is the entry of an investment profile in the order master data
record.
In the construction phase, you first post all transactions to the order. During monthly settlement, all
items that are not to be settled to receivers in Controlling (cost centers, etc.) are settled directly to the
asset under construction. The monthly evaluation balances display the capital investment undertaking in
the asset inventory.
In complete or partial activation, you enter the final asset in the order distribution rules which is to be
the basis for the settlement of the asset under construction. The asset under construction is
automatically credited.
The settlement side includes a line item settlement procedure for this particular order type in addition to
the standard settlement methods for internal orders.

SAP AG
R
Summary (1)
Actual posting to orders is similar to actual posting to cost centers.
If you post purchase requisitions or purchase orders for orders, a
commitment in the amount of the order value is set up on the order.
If you want to post the costs as they occur to the order and the cost
center, use a statistical order. With a statistical order, you post both
receivers simultaneously. There is no order settlement.
When a overhead costing sheet is defined in the order, the R/3 System
automatically calculates overhead surcharges. The costing sheet
consists of the calculation base, the surcharge, and the credit.
Orders are settled using individual or bulk processing. As a prerequisite,
a settlement rule must be entered in all orders. The R/3 System uses this
settlement rule to determine the receivers of the order costs.

SAP AG
R
Summary (2)
The settlement profile is taken over as a default value in the individual
orders via the order type. The settlement profile determines the receivers
allowed during settement, as well as the settlement structure. In the
settlement structure, you control the assignment of source cost elements
to settlement cost elements. Using the source structure, you can specify
which cost element groups are to be always settled together to the same
receiver.
The capital-investment order automatically includes an asset under
construction. The monthly settlement settles the order values to the asset
under construction if you do not enter anything else. For final settlement,
you enter the final asset(s) in the settlement rule. Settlement is then done
from the order or the asset under construction to these final asset(s).

SAP AG
Chapter Period Closing in Overhead Cost
Controlling
Period lock
Variance calculation
Reconcilation ledger

SAP AG
Period Lock
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Reposting
Distribution
Assessment
.
.
.
X
X
X
.
.
.

Using the period lock, you can lock plan and actual transactions for a combination of controlling area,
fiscal year and version.
You can choose from a list of all transactions in actual and plan the individual transactions that should
be locked.
You can also lock individual transactions for all periods in the fiscal year or all transactions for specific
periods.

SAP AG
Variance Calculation
Where does the Where does the
over/under-absorption over/under-absorption
come from? come from?
Area Area
Target Actual
16,000.-
-16,000.-
0.-
20,000.-
-15,000.-
5,000.-
Cost Cost
Center 1 Center 1
Target Actual
9,000.-
-9,000.-
0.-
10,000.-
7,000.-
3,000.-
Cost Cost
Center 2 Center 2
Target Actual
7,000.-
-7,000.-
0.-
10,000.-
-8,000.-
2,000.-
Responsibility Responsibility
own own
external external

Variance calculation is an analysis tool.
Cost center variances result from:
Too many / too few costs being debited
Too many / too few costs being allocated
There are two types of variances:
Actual balance: Cost center debits and activity allocation credits do not have the same amount. This
balance in actual equals the total of the variances.
Difference between target costs and actual costs: A cost centers target costs are compared with the
actual costs of the cost center (input side) and with the credits through activity allocation (output side).
Variance calculation is a periodic process. It is based on the values that result form all transactions in
cost center accounting. Based on this, the SAP R/3 System determines the target costs, distributes the
actual costs to the activity types, and calculates the variances per cost center/activity type.

SAP AG
Variance Categories
Input variance Input variance
Resource-usage variance Resource-usage variance
Quantity variance Quantity variance
Price variance Price variance
Total Variance Total Variance
Input Side Variances Input Side Variances

SAP AG
Variance Categories
Input variance Input variance
Resource-usage variance Resource-usage variance
Quantity variance Quantity variance
Price variance Price variance
Total Variance Total Variance
Input Side Variances Input Side Variances
Remaining variance Remaining variance
Secondary fixed-cost variance Secondary fixed-cost variance
Volume variance Volume variance
Fixed-cost variance Fixed-cost variance
Ouput price variance Ouput price variance
Output Side Variances Output Side Variances

In variance calculation, the difference between target costs and actual costs is revealed using a variety
of variance categories. In doing this, a distinction between the input side and output side in made: The
input side contains all cost center debits and credits, and the output side the cost centers activity
allocations.
Variance calculation is cumulative; the total of all variances equals the total variance.
If all of the variance categories on the input side are not active, the amount of the variances categories
not activated is displayed on the input variance category.
If all of the variance categories on the output side are not active, the amount of the variance categories
not activated is displayed in the remaining variance category.
If none of the variance categories are active in the variance variants, only remaining variances are
displayed.

SAP AG
Variances: Input Side
Price
variance
Quantity
variance
Resource-usage
variance
Input Side
Variances
Where does the over / under-absorption come from? Where does the over / under-absorption come from?
TARGET
Actual
debit
40 cents 40 cents
50 cents 50 cents
40 cents 40 cents
80 cents 80 cents
60 cents 60 cents
40 cents 40 cents
+20%
+50%
+100%
From varying costs?
Did the
prices change?
Have the consumption
quantities changed?
Have varying input
goods been used?

Input side variances can be divided into the following categories.
Price variance:
Difference between target and actual costs that can be traced back to differences in the plan and actual
prices of consumer goods. In order to calculate the prices and with them the price variances, you must
store quantities in addition to the costs.
Quantity variance:
Difference between target and actual costs that can be traced back to differences between the plan and
actual consumed quantities. In order calculate quantity variances, you must maintain quantities in your
system.
Structure variance:
Difference between target and actual costs that can be traced back to varying usage of consumer goods
in plan and actual.
Input variance:
Difference between target and actual costs that cannot be assigned to any of the above described
categories.
The variance categories on the input side are displayed based on cost elements.

SAP AG
Variances: Output Side
Where does the variance come from? Where does the variance come from?
Output Side
Variances
TARGET TARGET
Fixed cost
variance
Fixed costs
Output price
variance
Actual Actual
debit debit
A
s
s
e
m
b
ly
h
rs
U
S
D
1
0
0
.-
Assembly hrs
USD 40.-
USD 70.-
USD 110.-
From a varying
allocation?
Were incorrect
activity
prices used?
Did the
operating
level change?

Output side variances can be divided into the following categories.
Output price variance:
Difference between the target and allocated actual costs that result from using an allocation price which
does not debit the cost center in the amount of the target costs.
Fixed-cost variance:
Difference resulting from a part of the fixed plan costs not being covered or being overabsorbed in an
actual operating level that varies from the planned operating level. It is calculated from the total
operating level variance and the secondary fixed-cost variance. The variance is displayed based on cost
elements.
Remaining variance:
Difference between target and actual costs that cannot be assigned to any of the above categories.

SAP AG
Reconciliation Ledger / Reconciliation Postings
...
General Ledger
Controlling
001 002
001 002 001 002
Company codes
Business areas

SAP AG
Reconciliation Ledger / Reconciliation Reports /
Cost Analysis
...
General Ledger
Controlling
001 002
001 002 001 002
Company codes
Business areas
Reconciliation
Reports /
Cost
Analysis

SAP AG
Reconciliation Ledger / Navigation Tool
...
Navigation
Tool
General Ledger
Controlling
001 002
001 002 001 002
Company codes
Business areas
Reconciliation
Reports /
Cost
Analysis

All Controlling costs are collected and summarized in the reconciliation ledger, which represents Cost
Element Accounting in the SAP R/3 System.
The R/3 System only generates line items in cross-company-code or cross-business-area postings in
Controlling. This information is not automatically transferred to Financial Accounting. Using the
reconciliation ledger, you can reconcile cross-company-code, cross-business-area, or cross-functional-
area postings with Financial Accounting.
In addition to reconciling CO with FI, the reconciliation ledger offers the following informative
functions:
Cross-Controlling cost analysis with short runtimes
Navigation help and access to Controlling from the income statement

SAP AG
Reconciliation Ledger Structure
Account
Company code
Business area
Origin
Object type
Object class
Functional area
Account
Company code
Business area
Origin
Object type
Object class
Functional area
Transaction
Debit/Credit indicator
Controlling area currency Controlling area currency
Company code currency Company code currency
Group currency Group currency
Quantity Quantity
Object Object
Partner Partner

The structure of totals records postings in the reconciliation ledger is differentiated according to:
Company code
Business area
Origin (cost element sub-group)
Object type (cost center, order, project, etc.)
Object class
Functional area
All objects in Controlling (cost centers, orders, etc.) are fixed or specifically assigned to an object
class. According to the assignment, the reconciliation ledger updates a data record for this object class
when an account assignment takes place to such an object. This is how a high level of summarization is
achieved.
For allocations, the fields listed above are also saved for partners (sender or receiver) in the data record.
Therefore it is easy to validate allocations between company codes, for example.
The records are also updated differentiated according to the postings business-related transaction and
by debit and credit.
In each update, three currency amounts (controlling area currency, company code currency, and group
currency) and one quantity are updated.
The reconciliation ledger is updated with every posting or, alternatively, through follow-up posting.

SAP AG
Company code:
Object class:
Company code:

Transaction:
Debit/Credit:
Value:
0001
Overhead costs
001
Reposting
C
$500-
0002
Overhead costs
001
Reposting
D
$500+
of the
receiver
of the
sender
P&L accounts:
Internal repostings
500
500
500
500
$500 $500
Reconciliation
Ledger
General General
Ledger Ledger
Clearing accounts
Company Code
0001
Company Code
0002

Using reconciliation postings, you can transfer cross-company-code, cross-business-area, or cross-
functional-area postings in Controlling to Financial Accounting. In Financial Accounting, you can
automatically generate reconciliation postings.
You can make reconciliation postings at any time. You should, however, ensure that the reconciliation
postings are carried out after the last relevant CO posting has been made.
Requirements for reconciliation postings are:
Adjustment accounts and clearing accounts need to be created in Financial Accounting
The adjustment accounts need to be assigned to business-related transactions, object classes, or a
combination of both
When executing reconciliation postings, you can use auxiliary functions such as test run and detail list.

SAP AG
Difference Difference
(for example, (for example,
from from
reposting) reposting)
OK OK
General General
Ledger Ledger
FI FI CO CO Reconciliation Reconciliation
Ledger Ledger
Reconciliation Report
for Company Code 0001
Account FI CO Balance
400000 200000 150000 50000 50000
415000 500000 500000 0

You can use specific cost element reports to evaluate the reconciliation ledger.
Controlling and general ledger resulting numbers can be displayed in the reports.
You can evaluate the reconciliation ledger independent of the application and thereby identify which
costs accrued. In doing so, you can make differentiated cost analyses according to object types,
functional areas, object classes, company codes, or business areas.

SAP AG
Summary (1)
Using the period lock, you can lock individual
transactions for a combination of controlling area, fiscal
year, and version.
Variance calculation is a periodic process with which you
can analyze variances.
Variance calculation distinguishes between the input side
and output side of a cost center. This enables you to
activate or deactivate specific variance categories.
In the reconciliation ledger, costs of the complete
controlling area are summarized according to various
criteria.

SAP AG
Summary (2)
In addition to reconciliation of Controlling with Financial
Accounting, you can use the reconciliation ledger to carry
out cost analysis for all of CO with short runtimes. The
reconciliation ledger also serves as a navigation tool and
as access to Controlling from the income statment.

Cash Management
Cash Management

SAP AG
Overview
Chapter 59 Customizing Manual
Planning
Chapter 60 Check Deposit
Chapter 61 Customizing Check Deposit
Chapter 62 Bank Statement: Manual
Entry
Chapter 63 Customizing the Manual
Bank Statement
Chapter 53 Complex Cash Management
Chapter 54 Cash Management Position
Chapter 55 Customizing the Cash
Management Position
Chapter 56 Cash Concentration
Chapter 57 Customizing Cash
Concentration
Chapter 58 Manual Planning

SAP AG
Overview
Chapter 67 Customizing the Liquidity
Forecast
Chapter 68 Customizing Data Transfer
and Reorganization
Chapter 64 Bank Statement: Electronic
Entry
Chapter 65 Customizing the Electronic
Bank Statement
Chapter 66 Liquidity Forecast

SAP AG
Introduction
l Instruments
l Overview of the functionality
l Terminology

SAP AG
Problems and Objectives
1. Ensuring optimum liquidity for
maturing obligations
2. Preparing and transferring short,
medium and long-term funds at
maturity
3. Control over incoming and outgoing
payments
4. Information on managing short-term
cash investments or borrowings
1. Too many bank accounts
2. Accounting by value date is required
3. Unreliable planning tools
4. Investment instruments not used to
their fullest potential
5. Lack of payment strategy
Conclusion Conclusion
All necessary information must be
accessible in the cash management system.
Business Objectives Business Objectives Current Problems Current Problems

SAP AG
Basic Planning Data Basic Planning Data
Planning Planning
Decision Decision
Execute Execute
Invest/Borrow Cash Invest/Borrow Cash
Liquidity Forecast Liquidity Forecast
(liquidity trend) (liquidity trend)
Payments Made Payments Made
(checks, (checks,
bank transfers, . . . ) bank transfers, . . . )
Bank Statements Bank Statements
- electronic - electronic
- manual - manual
Manual Planning Manual Planning
- payment advices - payment advices
- forecast values - forecast values
- sub-accounts - sub-accounts
(e.g. check deposit) (e.g. check deposit)
Money Market Money Market
(interest terms) (interest terms)
Cash Concentration Cash Concentration
(permanent average (permanent average
balances) balances)
(bank orders, documents) (bank orders, documents)
Preparation for the Next Day Preparation for the Next Day
(payment advices, printouts, documentation) (payment advices, printouts, documentation)
Procedure for Day-to-Day Planning

SAP AG
Integration: Cash Management Position

Financial Accounting Financial Accounting Cash Management Cash Management
FI FI
Electronic bank Electronic bank
Planning / Planning /
analyses analyses
FI FI
FI FI
Bank-related accounting
Cash management position

After the bank statements are posted, the account transactions can be displayed in the cash
management position.

SAP AG
Cash Management within the Treasury Environment
Electronic Banking Electronic Banking
l l BTX BTX
l l Datex-P Datex-P
FIS FIS
l l Analyses Analyses
l l Reporting Reporting
Materials Mgmt Materials Mgmt
l l purchase orders purchase orders
MM MM
Trading and Correspondence Trading and Correspondence
Planning and Planning and
forecast forecast
data data
Integrated Financial Management Integrated Financial Management
FI FI
CMF CMF
FI FI
BANK BANK
FI FI
FIS FIS
FI FI
INT INT
FI FI
FA FA
Sales and Distribution Sales and Distribution
l l sales orders sales orders
SD SD
Financial Assets Mgmt Financial Assets Mgmt
l l loans loans
l l securities securities
l l time deposits time deposits
FI FI
FA FA
l l bank-related accounting bank-related accounting
l l accounts receivable accounts receivable
l l payment behavior payment behavior
FI FI

Abbreviations
- FI: Financial Accounting
- CMF (CM): Cash Management and Forecast (Cash Management)
- FIS: Financial Information System
- BANK: Extended Banking and Treasury Functions
- INT: Interest Scale (Interest)
- FA: Financial Assets Management (Fixed Assets)
- SD: Sales and Distribution
- MM: Materials Management

SAP AG
Instruments
Instrument Instrument
Data Data Time Frame Time Frame
1. 1. Cash management Cash management
position position - - bank accounts bank accounts
- - by value date by value date - - bank clearing accts bank clearing accts 0 to 5 days 0 to 5 days
- - payment advices payment advices
2. 2. Liquidity forecast Liquidity forecast
- - projecting cash projecting cash - - accounts receivable accounts receivable
inflows/outflows inflows/outflows - - accounts payable accounts payable 1 to 24 weeks 1 to 24 weeks
- - taxes taxes - - FI, MM, SD FI, MM, SD
- - planned items planned items

SAP AG
The Terminology and Contents of Planning
Cash mgmt position Cash mgmt position Liquidity forecast Liquidity forecast
Source of data Source of data
= =
level level
Account Account
= =
group group
Result: Result:
level level
payment advices,
bank entries
bank accounts,
clearing accounts
manual planning,
invoices,
sales orders,
purchase orders
customers,
vendors,
groups,
planned items
(e.g. personnel expenditures,
taxes)
A qualitative report can be made about
the balance of a group.
(levels explain groups)

SAP AG
Summary
l Cash management position: bank account activity
l Liquidity forecast: ensuring and monitoring
liquidity
l Online integration of bank-related accounting and
subledger accounting

SAP AG
Chapter Cash Management Position
l Features
l Organizational and technical requirements of
integration
l Accessing the cash management position
l The grouping function
l Currency display and currency exposure

SAP AG

Displaying the Cash Management Position
Company code . . . . . . . . . . Company code . . . . . . . . . . FD01 FD01
: :
Cash mgmt position . . . . . . X Cash mgmt position . . . . . . X
: :
Grouping . . . . . . . . . . . . . . . Grouping . . . . . . . . . . . . . . . BANKS BANKS
Display as of . . . . . . . . . . . . Display as of . . . . . . . . . . . . Date Date
: :
Display type . . . . . . . . . . . . K Display type . . . . . . . . . . . . K

On the initial screen specify the selection options for the following accounts analysis:
Company code: company code whose bank data you want to display
---------------------------------------------------------------------------------------------------------------------------
Cash management position: X displays bank data
Grouping: term which stands for a specific bank/account view
Display as of: (aggregated) starting date of the account forecast
Planned currency:
Display in: currency code; affects which documents are selected for summarizing
and how their currency is converted (foreign exchange exposure)
---------------------------------------------------------------------------------------------------------------------------
Increment: time frame (1-99) in days (T), weeks (W) or months (M)
Display type: type of amounts breakdown: K (aggregated = account balance)
D (delta = inflows/outflows)

SAP AG
Cash Management Position: Groups / Levels
Grouping: BANKS Grouping: BANKS
08/01/93 08/01/93 08/02/93 08/02/93 08/03/93 08/03/93
______________________________________________________________ ______________________________________________________________
BANKA BANKA 50 50 70 70 60 60
BANKB BANKB 40- 40- 20- 20- 30- 30-
: :
Groups: BANKA Groups: BANKA 08/01/93 08/01/93 08/02/93 08/02/93 08/03/93 08/03/93
______________________________________________________________ ______________________________________________________________
Account 1 Account 1 60 60 60 60 60 60
Account 2 Account 2 10- 10- 10- 10- 20- 20-
Account 3 Account 3 20 20 20 20
Levels: ACCT1 Levels: ACCT1 08/01/93 08/01/93 08/02/93 08/02/93 08/03/93 08/03/93
______________________________________________________________ ______________________________________________________________
PAYMENT ADVICE PAYMENT ADVICE 20 20 10 10 10 10
B2 Incoming check B2 Incoming check 40 40 50 50 30 30
F0 Bank posting F0 Bank posting 20 20
Allocation Allocation Doc. no. Doc. no. . . . . . . . . . . . . . . Amount Amount
______________________________________________________________ ______________________________________________________________
19930801 19930801 1 1 40,000.- 40,000.-

The grouping term specifies how the system summarizes the data.
The total bank balance is broken down by:
- the groups (accounts) that are posted to (Groups are listed with their cash management account
names.)
- the levels (reasons) of a bank or account transaction.
Line items can be displayed using the list display (top down).

SAP AG
account
Risks
Investments Settlement
Risks
Investments Settlement
Risks
contingent liability,
bill of exchange
liability
Investments
overnight,
long-term cash
investments
Settlement
daily operations,
check deposits,
outgoing checks,
bank transfers,
bank collections,
USD USD USD USD USD USD
DEM DEM DEM DEM DEM DEM
CHF CHF CHF CHF CHF CHF
account
DEM DEM
USD USD
CHF CHF
Requirements: Bank Account Structure
Bank
account

In bank-related accounting a clearing account is to be set up for each type of payment.
Objectives:
- accounts can be reconciled at any time
- foreign currency and local currency are managed parallel
- interest can be calculated
- line item analysis can be made
- contingent liabilities can be monitored
- items posted automatically using automatic payment transactions
- automatic breakdown using electronic banking transactions

SAP AG

Requirement I: Bank-Related Accounting
outgoing checks outgoing checks
transfer A transfer A
foreign transfer A foreign transfer A
01 01
02 02
03 03
04 04
. . . . . . . . . . . . . . . . . . . .
113100 113100
Bank A Bank A
current account current account
2. Bank statements 2. Bank statements
1. Payment transactions 1. Payment transactions
3. Cash management 3. Cash management

1. Payment transactions are posted against the clearing accounts.
2. Bank statements balance the clearing entries against the bank account.
3. Postings are displayed and monitored in Cash Management.

SAP AG

Requirement II: Bank Accounts
Field control Field control
Sort key Sort key
Open item management Open item management
Planning level Planning level
Value date Value date
Customizing: field status - payment transactions Customizing: field status - payment transactions

027 005
X
X X
F0 Bx
X X
Bank account Bank account Subaccount Subaccount

Bank accounts must be configured so that the bank postings are included in planning.

SAP AG

Requirement III: Planning Levels
BANKA
LEVEL 08/01/93
------------------------------------
F0 60,000.-
Bx 10,000.-
BANKA1 BANKA1 Table Table
BANKA0 BANKA0
Entry: Document Entry: Document
: :
Planning level: Bx Planning level: Bx
: :
Bx: outgoing check Bx: outgoing check
: :
F0: bank posting F0: bank posting
: :
: :
Planning level: F0 Planning level: F0
: :
: :
Planning level: Planning level: F0 F0
Value date: Value date: 08/01/93 08/01/93
: :
Cash Mgmt Position Cash Mgmt Position

Planning level: The planning level field (FD-EBENE) must be activated in the bank account master
record via the field status group.
Posted documents and their amounts are aggregated according to the proposed value at value date and
displayed in the cash management position.

SAP AG
Currency Display

Display Display
in in
In the following illustration LC is the local currency. This means that during posting
the system automatically translates a foreign currency amount into the LC.

Cash Management Position
Company code: 03
Business area: **
:
Display in : LC
Rate FC/LC:
Rate LC/FC:
:
Planned Planned
currency currency
FC/LC FC/LC LC/FC LC/FC Outcome Outcome
LC - posted amounts in local currency
LC LC - - posted LC amounts, without FC
FC FC - - posted FC amounts, without
translation
FC LC - - currency accounts: posted FC amounts
are translated at entry date rate (TCURR)
FC LC 1.64 - posted FC amounts translated at 1.64
FC1 FC2 1.64 1.20 posted FC1 amounts translated into FC2
using local currency: 1.64/1.20 = 1.37

You can display the foreign exchange exposure by using the currency fields.

SAP AG
Features
Bank balances by value date Bank balances by value date
Parallel management of foreign currencies Parallel management of foreign currencies
Automatic revaluations Automatic revaluations
Cash position covering the next few days Cash position covering the next few days
Automatic payment using expected value days Automatic payment using expected value days
Control over cashed checks Control over cashed checks
Liabilities for presented bills of exchange Liabilities for presented bills of exchange
Individual planning Individual planning
Cash Management Position Cash Management Position

SAP AG
Summary
l Cash management position: overview of cash activity in
bank accounts and bank
clearing accounts
l Top-down analysis to the document level
l Detailed account balance analysis by breaking down levels

SAP AG
Chapter Customizing the Cash Management
Position
l Bank account configuration
l Bank-related accounting and house banks
l Planning level structure
l Cash management account name
l Groupings structure

SAP AG

Master Record: Planning Level
Master data G/L accounts Account groups Master data G/L accounts Account groups
G/L account G/L account 113100 113100
Short text . . . Short text . . . Citibank Citibank
: :
Account group . . . Account group . . . FIN. FIN.
ChAct ChAct ActG ActG from from to to Description Description
CAUS CAUS FIN. FIN. . . . . . . . . . . . . Liquid funds Liquid funds
: :
Req. Req. Opt. Opt.
: :
Planning level Planning level X X
: :
FIN. FIN.
: :
113100 113100 . . . . . .
113200 113200 . . . . . .
Financial specifications Financial specifications
Edit Edit
Edit Edit Usage Usage

The master record fields (planning level) required for entering planning data are configured using the
account groups.

SAP AG
Bank Account Configuration
Acct no. Acct no. : : BANKC0
Co. code: : FD00
Reference: : BANKA0
:
:
Open item mgmt : : (X)
Line item display : : X
Sort key Sort key : : 005
:
Planning level : level : F0
________________________
:
House bank: bank: MEIBA
Bank acct Bank acct : : GIRO
:
Bank account Bank account General ledger General ledger Master records Master records

The configuration of bank accounts determines how account transactions are allocated in the cash
management position (see 2-5):
- open item management in sub-accounts,
- line item display for bank accounts and bank sub-accounts,
- sort key 005 (local currency amount) or 027 (planning date),
- The planning level is transferred to the document. It is an allocation characteristic and classifies the
account transaction.
House bank: In Cash Management, correspondence with banks is carried out using the bank ID.

SAP AG
House Banks
House Banks
H. bank Cntry Bank key
HSBA1 US 500 200 10
HSBA2 US 600 300 10
. . . . . . . . .
Bank Directory
House bank data ______________
Bank country US
Bank key 600 300 10
Address ______________
Bank ___
Region ___
Street ___
City ___
Control data ______________
Swift code ___
Bank group ___
Postal giro off. ___
Bank number ___

House banks for each company code are stored under a freely definable ID (maximum five characters).
All details of the house banks are managed in the bank directory.

SAP AG
Bank Accounts
Bank accounts Bank account data
House bank Acct ID Text ...
CITI 1 CHECK chck acct Bank account 12345678
CITI 1 USD USD acct Currency ___
CITI 2 GIRO crrt acct Control key ___
. . . . . . . . . G/L account ___
. . .
House bank belonging to it House bank belonging to it
G/L account Bank directory
Giro account House bank 1 House bank date
Company code 0001 Bank country
Bank key
House bank CITI 2 Address _____________
. . .
Bank account key GIRO Control _____________
. . .

The company code bank accounts are stored under an account ID for the house banks that you define.
A G/L master record is created for each bank account.
You can store the house bank key and account ID in the bank account master record.
If you maintain currency accounts, the currency key in the G/L master record must be the same as the
foreign exchange of the currency account.
During bank correspondence, the system uses the bank ID and account ID to obtain the address
information from the bank directory.

SAP AG
Documents: Value Date
Edit field Edit field
status status
Master data G/L accounts Field status group . . . Master data G/L accounts Field status group . . .
FStV Field status
0001 G0002 Bank
:
Payment trans. Req. Opt.
Value date X X
:
CC . . . Propose value date
0001 X X
: :
Environment Company code value dates

The field status and additional account assignment are entered per account group.
Bank postings are scheduled by value date.
You can have the system automatically propose the current date as the value date.

SAP AG
Planning Levels
Master data G/L account Planning levels Master data G/L account Planning levels
Source Description
_______________________________
BNK Bank-related accounting
PSK Subledger accounting
Level . . . Source Short text Long text
________________________________________________________
CA A BNK Advice Payt advice (confirmed)
UA A BNK Advice Payt advice (unconfirmed)
B1 B1 BNK Check paid Checks payable
Di Di SUB Planning General planning
F0 F0 BNK FI banks Bank account posting
:

Planning levels provide information on the type of account transaction and the reason for the
transaction. They are freely definable.
The source symbol is used to check whether data is permitted for the specified level in the cash
management position or in the liquidity forecast.
You can define new planning levels by selecting and copying the standard entries or by entering a
completely new level.

SAP AG
Cash Management Account Name
CC CM acct G/L acct Bank account . . .
_________________________________________________________
FD00 CITI 113100 110113100 . . .
:
Cash management position / Group
Account CC 08/01/93 08/02/93 . . .
_________________________________________________________
CITI FD00 11 11 . . .
:
Structuring Cash management account name Structuring Cash management account name

In Cash Management, the cash management account name is a mnemonic name that replaces the
account number.
The system uses the cash management account name in all transactions and reports (for example, the
cash management position) instead of the account number.
The account name is unique in each company code. Within Cash Management, it enables you to
differentiate the same account numbers in different company codes.

SAP AG
Grouping Structure
Grouping Type Selection Sum. term Sum. acct
_________________________________________________________
BANKS US E ++ **
BANKS US G 0000BANKA0 CITIBANK
:
Grouping Heading Line heading
_________________________________________________________
BANKS US Bank account activity Bank accounts
:
Structuring Groupings Structure Structuring Groupings Structure

Grouping terms are used to combine accounts. Their balances can be displayed per account or as an
aggregate.
Grouping terms are freely definable.
The type shows whether levels (E) or groups (G) are displayed. At least one line in each grouping
should be set as type G.
The selection determines which levels (2 digits) or groups (10 digits) are summarized. You can enter
individual values and partially or fully masked values (see 2-9). Groups must be ten characters long
and if necessary, entered with leading zeros.
The summarization term specifies whether the individual value is displayed or the cumulative value is
displayed (see 2-9).
When you create new grouping entries, you have to define headings for them.

SAP AG

The Grouping Functions
BANKS E ++ **
All levels Summarization term
'**' = no particular identifier;
but summarized
BANKS G ++++++++++ Other
BANKS G 00001131++ American
Groups: identified are Specific
summarized first, then un- identifier;
identified summarized
LEVEL E ++
Immediate individual
breakdown; not
summarized
E = levels ( 2 characters) E = levels ( 2 characters)
G = group (10 characters) G = group (10 characters)
Grouping Grouping Type Type Selection Selection Summarization term Summarization term

Using the grouping term, the system summarizes and aggregates the accounts, or displays them as an
individual value.

SAP AG
Summary
l Planning levels integrate the cash management position
with bank-related accounting.
l The cash management account name enables you to
differentiate bank accounts that have the same G/L
account number in different charts of accounts.
l Groupings are used to select and structure the dataset
you require.

SAP AG
Chapter Cash Concentration
l Concentration proposals
l Correspondence for concentration
l Posting procedures

SAP AG
Cash Concentration
Features Features
Proposal per user criteria Proposal per user criteria
Manual online modification Manual online modification
Transfers generated Transfers generated
Correspondence generated Correspondence generated
Cross-company-code concentration Cross-company-code concentration
Position at 10:30 Position at 10:30 after concentration after concentration
Bank 1 1200 5
Bank 2 100 5
Bank 3 400 1337
Bank 4 -350 3
1350 1350

SAP AG

Cash Concentration
Company code Company code : : FD00
Planned date Planned date : : 08/04/93
Grouping Grouping : : BANK-ACT
Target account Target account : : BANKZ
Target comp. code Target comp. code : : FD00 Planning type : Planning type : CL
Concentration proposal
Planning Cash concentration Planning Cash concentration
Create payment advices Payment orders
Round
Change
. . . . . . . . . . .

For cash concentration, you specify:
- the company code to be included in the cash concentration
- the planned date (transactions with value dates before or on the date you specify are included)
- the grouping of the bank accounts to be included
- the target account and company code where surplus and negative balances are concentrated
- the planning type (payment advice type for cash concentration)
The payment orders are used for bank correspondence.

SAP AG

Concentration: Posting Procedures (Example)
2a) 10,000 10,000 2a) 10,000 10,000 1) 10,000 10,000
2b) 10,000 10,000 1 1) 10,000 10,000 2b) 10,000 10,000
Proposal: Proposal:
(target account BANKZ) (target account BANKZ)
BANKA BANKA
BANKZ BANKZ
10,000.- 10,000.-
0.- 0.-
0.- 0.-
10,000.- 10,000.-
BANKA/CLEAR. BANKA/CLEAR.
BANKZ/CLEAR. BANKZ/CLEAR.
Outcome: Outcome: 2 payment advices 2 payment advices
Before Before
concentration concentration
After After
concentration concentration
Clearing account Clearing account
(T018c) (T018c)
Postings (RFFDBU00) Postings (RFFDBU00)
BANKA BANKA BANKA/CLEAR. BANKA/CLEAR.
BANKZ BANKZ BANKZ/CLEAR. BANKZ/CLEAR.

1. Posting and archiving the payment advices from cash concentration: RFFDBU00
2. Account statement postings: 2a) BANKA
2b) BANKZ

Advantages:
1. Payment advices are automatically archived.
2. Cash management position: concentration clearing account updated online
3. Electronic bank statement: items automatically posted to the bank account,
items cleared in clearing account

SAP AG
Summary
l The concentration proposal is created automatically. The
system obtains the determining factors from table
specifications (customizing) and the grouping.
l Correspondence is prepared using the proposal.
l The clearing entries also result from the proposal. They
are required for electronic statement transfer.

SAP AG
Chapter Customizing Cash Concentration
l Specifications for cash concentration as table
settings
l Examples of clearing procedures
l Automatic correspondence

SAP AG

Cash Concentration - Specifications

Intermediate accounts Intermediate accounts
CC CC Account Account
FD00 FD00 BANKA0 BANKA0
FD00 FD00 BANKB0 BANKB0
: : : :

Details
Intermediate account
Company code FD00
Account BANKD0
Minimum balance 5,000
Planning minimum 5,000
:
Business volume Cash concentration Business volume Cash concentration

You can define basic settings for cash concentration for each bank account:
- The intermediate account is the account through which cash is concentrated (at a state central bank
or regional bank).
- The minimum balance ensures base amounts for planning, for example, in outgoing payments
accounts.
- The planning minimum avoids unnecessary cash concentration procedures.

SAP AG
Cash Concentration - Settings (Examples)
1. BANKA BANKA FD01 FD01 BANKA BANKA FD01 FD01 BANKZ BANKZ FD01 FD01 CONACT/CONBK= CONACT/CONBK=
+ 500.- 500.- TRGACT/BK
2. BANKA BANKA FD01 FD01 BANKA BANKA FD00 FD00 BANKZ BANKZ FD01 FD01 ( (INTACT) INTBK ) INTBK
+ 500.- 500.- 0 TRGACT/BK
3. BANKA BANKA FD01 FD01 BANKB BANKB FD01 FD01 BANKZ BANKZ FD01 FD01
a) + 500.- - 200.- INTACT TRGACT
+ 500.-
_________
+ 300.-
b) BANKB BANKB BANKB FD01 INTBK INTBK = TRGBK
+ 300.- 300.-
Ex. Ex. CONACT CONACT CONBK CONBK INTACT INTACT INTBK INTBK TRGACT TRGACT TRGBK TRGBK TABLE 018C TABLE 018C

Example 1: company code internal cash concentration
Example 2: corporate group cash concentration
Example 3: company code internal cash concentration using an intermediate account

CONACT = concentration account
CONBK = concentration bank
INTACT = intermediate account
INTBK = intermediate bank
TRGACT = target account
TRGBK = target bank

SAP AG
Cash Concentration - Correspondence
CC CC Company name Company name Program Program Form name Form name
FD00 SAP AG RFFDIS50 F_FDIS_BC_AVIS
:
Business volume Forms

Tools
Word processing
Layout set

Confirmation letters for cash concentration are defined as standard forms for each company code.

SAP AG

Confirmation: Address / Account No.

House bank Cntry Bank key
CITI US 100 200 30
:
Address
Bank accounts belonging to it
Acct ID Bank acct Text
CHCK 1234567 . . .
:
Bank master Bank master
House bank House bank : CITI : CITI
Bank account key Bank account key : CHCK : CHCK
BNKA BNKA
Customizing Customizing House banks House banks

The system uses the house bank ID in the bank account master record to determine the bank key and
the bank address.
It uses the bank account ID to determine the external account number.

SAP AG
Chapter Summary
l Table specifications make cash concentration practically
automatic among company codes or even the corporate
group for example.
l The payment advice notes the system creates from cash
concentration provide the necessary data for
correspondence with banks and for planned postings
from bank statements.

SAP AG
Chapter Manual Planning
l Features
l The definition of a payment advice
l Archiving

SAP AG

Manual Planning
Definition Definition
user definable
Possible Applications Possible Applications
cash receipt advice
entry of planning data
entry of noted items, adjustment items
automatic (expiration date) or manual expiration
separate archiving intervals (archiving categories)
extensive selection options to quickly find data
changes easily made
additional information (texts, characteristics, . . .)
checks as to planning on Saturday / Sunday

SAP AG

Creating Payment Advices
Company code: Company code: FD00
Planning type: Planning type: C CA
Planning type Planning type : : CA CA confirmed payment advice
______________________________________________
Value date Value date : : 08/01/93 Expiration date : date : 08/04/93
Cash management account name: account name: BANKA
______________________________________________
Amount : : 10,000
______________________________________________
Allocation : :
Characteristics Characteristics : :

The entry of planned items (memo records) is split into three sections:

1. planning data (date, group, expiration date)
2. amount data (currency, exchange rate, etc.)
3. additional information (allocation, characteristics, description, etc.)

- The planning type determines the entry level, the entry screen and the expiration.
- The expiration date shows how long the payment advice is included in planning.
- The allocation can be freely defined.
- The characteristics are also freely definable. They help you quickly identify the records.
- The transaction type accelerates the comparison of payment advices and bank statements.

SAP AG

Editing Payment Advices
S S CC CC ACCT NAME ACCT NAME PT PT DATE DATE AMOUNT AMOUNT
___________________________________________________
X FD00 BANKA AU 08/04/95 10,000.00
Transfer Transfer
Archive A Archive A
AU = Archive A AU = Archive A
Retention prd : 1 Retention prd : 1

The payment advices for editing can be changed, archived or reactivated (=transfer).
The wide range of selection options simplifies searching for specific payment advices.
Archived payment advices are no longer included in planning.
The planning type (e.g. UC) determines the archive (e.g. A) in which a payment advice is stored.
Archives are freely definable. They are differentiated by the retention period.
The retention period shows how many months a record remains in the system before it is deleted in a
reorganization run.

SAP AG

Payment Advice Journal
Company code : FD00 FD00
Cash Cash mgmt position : X X
:
User : Smith
:
Execute Execute
Journal from 08 08/04/93 04/93
____________________________
Payment Payment advice 1 5,000.00 5,000.00
Payment Payment advice 2 4,000.00 4,000.00
____________________________
Total 9,000.00 9,000.00
Payment Advice Journal Reporting Payment Advice Journal Reporting

In the payment advice journal, the system lists payment advices according the selection criteria you
specify.

SAP AG
Summary
l Payment advices anticipate bank statement postings.
They are also used for adjustment entries.
l When a payment advice is archived or has automatically
expired, its amount is no longer taken into account in your
planning.

SAP AG
Chapter Customizing Manual Planning
l Planning types
l Archiving and automatic expiration
l Archive retention period

SAP AG
Planning Types
CA CA CA CA U U X X 01 01 +++ . . . +++ . . .
: : : : Confirmed advice Confirmed advice
Plan. Plan.
type type
Level Level Archiv. Archiv.
cat. cat.
Auto. Auto.
exp. exp.
Number Number
range range
. . . + . . . 1 . . . + . . . 1
Planning type text Planning type text
Structuring Manual planning Structuring Manual planning

The planning type or payment advice type is freely definable. It specifies the additional characteristics
of the payment advice (level, archiving category, expiration date, number range and field selection).
The level enables you to make a qualitative analysis about the value of a planned item. The system
checks the level.
The archiving category determines how long a manually planned item remains in the archive before it
is reorganized (see 3-4).
The option Automatic expiration indicates whether memo records of a planning type become invalid
automatically (X) after they reach the expiration date or whether they become invalid when they are
archived.
The number range controls number assignment for memo records.
The field status definition is used to control which fields are ready for input.

SAP AG
Planning
type
Archiv.
category
Value
date
field
protect.
manually
entered
not
entered
Reorg. Expiration date
AA A 01/25/96 X 01/26/96 1)
AB 01/25/96 X 01/26/96 2)
AC A 01/25/96 X (01/25/96) 3)
AD 01/25/96 4)

1) If the CPU date is after the expiration date, the payment advice is no longer included in the cash
management position. It can then be archived. A reorganization can be made
a) after the expiration date runs out or
b) after the archive retention period runs out.
2) Same as 1)
Archiving is not possible. Reorganization is carried out after the expiration date runs out.
3) Same as 1)
The expiration date is automatically set as the value date.
4) The payment advice is effective until 12/31/9999 (expiration date set internally).

SAP AG

A 2
B 5
:
Archiving Archiving
category category
Retention Retention
period period
Structuring Retention period Archive Structuring Retention period Archive

The archiving category is freely definable.
The retention period is specified as months.

SAP AG
Summary
l Planning types represent the probability of cash receipt or
cash disbursement that you plan.
l The values of payment advices are eliminated by
archiving or deleting the payment advices after the actual
posting has been made.

SAP AG
Chapter Customizing Manual Planning
l Planning types
l Archiving and automatic expiration
l Archive retention period

SAP AG
Planning Types
CA CA CA CA U U X X 01 01 +++ . . . +++ . . .
: : : : Confirmed advice Confirmed advice
Plan. Plan.
type type
Level Level Archiv. Archiv.
cat. cat.
Auto. Auto.
exp. exp.
Number Number
range range
. . . + . . . 1 . . . + . . . 1
Planning type text Planning type text
Structuring Manual planning Structuring Manual planning

The planning type or payment advice type is freely definable. It specifies the additional characteristics
of the payment advice (level, archiving category, expiration date, number range and field selection).
The level enables you to make a qualitative analysis about the value of a planned item. The system
checks the level.
The archiving category determines how long a manually planned item remains in the archive before it
is reorganized (see 3-4).
The option Automatic expiration indicates whether memo records of a planning type become invalid
automatically (X) after they reach the expiration date or whether they become invalid when they are
archived.
The number range controls number assignment for memo records.
The field status definition is used to control which fields are ready for input.

SAP AG
Planning
type
Archiv.
category
Value
date
field
protect.
manually
entered
not
entered
Reorg. Expiration date
AA A 01/25/96 X 01/26/96 1)
AB 01/25/96 X 01/26/96 2)
AC A 01/25/96 X (01/25/96) 3)
AD 01/25/96 4)

1) If the CPU date is after the expiration date, the payment advice is no longer included in the cash
management position. It can then be archived. A reorganization can be made
a) after the expiration date runs out or
b) after the archive retention period runs out.
2) Same as 1)
Archiving is not possible. Reorganization is carried out after the expiration date runs out.
3) Same as 1)
The expiration date is automatically set as the value date.
4) The payment advice is effective until 12/31/9999 (expiration date set internally).

SAP AG

A 2
B 5
:
Archiving Archiving
category category
Retention Retention
period period
Structuring Retention period Archive Structuring Retention period Archive

The archiving category is freely definable.
The retention period is specified as months.

SAP AG
Summary
l Planning types represent the probability of cash receipt or
cash disbursement that you plan.
l The values of payment advices are eliminated by
archiving or deleting the payment advices after the actual
posting has been made.

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Chapter Customizing Check Deposit
l Internal transactions
l External transactions
l Posting
l Screen templates

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Transactions

Posting Posting
Int. trans. 0003 Int. trans. 0003
Debit Debit 40 40 BANK BANK Bank acct Bank acct
Credit Credit 50 50 Cash rec. Cash rec.
Doc. type Doc. type SA SA
. . . . . .
Allocate Allocate Transactions Transactions
Trans Trans Int trans Int trans Acct mod Acct mod Tran val dte . . . Tran val dte . . .
CHK CHK 0003 0003
: :
Internal transactions Internal transactions
Int trans. Int trans. Text Text
: :
0003 0003 Check deposit Check deposit
: :
Business volume Check deposit Business volume Check deposit

Internal transactions (standard) represent typical bank postings. They are freely definable.
When you allocate the internal transaction to a transaction name, you can then also post the internal
transaction in check deposit. The transaction name is freely definable.
Transaction value date: name of the rule for determining the value date from the posting date (e.g.
posting date + 2 days). You define the rule with the bank terms.
The system uses the internal transaction to determine the information necessary for posting (posting
keys, accounts, document type).

SAP AG
Posting and Account Determination
Posting Posting
Goto Goto Accounts Accounts
: :
Acct symbol . . . Acct symbol . . . Currency Currency G/L account G/L account
INCMING CHCK INCMING CHCK + + ++++++++08 ++++++++08
INCMING CHCK INCMING CHCK USD USD ++++++++19 ++++++++19
CHCK CLEARNG CHCK CLEARNG + + ++++++++17 ++++++++17
: :
Business volume Check Deposit Business volume Check Deposit
Comp Comp
Comp Comp
Internal transaction Internal transaction 0003 0003
Posting area Posting area 1 1
Debit Debit 40 INCMING CHCK
Credit Credit 50 CHCK CLRING
Document type Document type SA Posting type Posting type 1
Internal transaction 0003 Internal transaction 0003
Debit Debit 40 CHCK CLRING
Credit Credit
Document type Document type DZ Posting type Posting type 8

The system uses the posting area to determine whether it should post the items to the general ledger
(1) or subledger (2).
The G/L accounts are found using the account symbols (INCOMING CHECK).
Partially masked entries refer to the clearing account that belongs to the G/L account.
The system uses the entry in the Currency field to send checks in foreign currency to the required
foreign currency account.
Select the compression indicator to have the system post the checks as a total rather than individually.
The posting type determines the posting rules (e.g. G/L posting, subledger posting).
A posting key and account is not entered for posting area 2 (subledger), since the data required for
clearing the item is obtained from the check (issuer, document number, etc.).

SAP AG

Simulating the Postings
Posting Goto Simulation Posting Goto Simulation
: :
Internal transaction Internal transaction 0003
Posting area Posting area 1
: :
Currency Currency USD
Acct to be replaced Acct to be replaced 113100
Simulate Simulate
Debit Credit
: :
G/L account G/L account 113108 G/L account G/L account 113109
Acct symbol Acct symbol Incmng chck Acct symbol Acct symbol Check clearing
: :

By simulating the postings, you can test the effects of postings on the new bank accounts that you
create.
Account to be replaced: Enter the (new) bank account you want to test.

SAP AG

Creating Screen Variants
Business volume Specifications for check deposit Business volume Specifications for check deposit
Maintain variants Maintain variants
Variant Variant VAR1 VAR1
Description Description Variant 1 Variant 1
Number of lines Number of lines 1 1
Continue Continue
: :
Fields of the variant Fields of the variant
Column Offset Current fields Possible fields
1 1 3 3 Amount Amount Amount Amount
2 2 18 18 Customer matchcode Customer matchcode 13-digit check number 13-digit check number
: : : :

The fields required for checks entry are selected in the order you want them displayed on the screen.
To do this, place the cursor on a possible field, and double click on the field or select it using the menu
option.

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Summary
l The allocation of internal transactions to external
transactions facilitates account determination.
l The posting type option triggers the postings.
l You can set up screen templates with selection fields
according to your requirements.

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Chapter Bank Statement: Manual Entry
l Technical procedure
l Entry procedure
l Selection of open customer items

SAP AG

Manual Bank Statement: Procedure
Bank statement Bank statement Manual entry Manual entry Temporary Temporary
dataset dataset
General General
ledger ledger
documents documents
Subledger Subledger
documents documents

SAP AG
Entering the Bank Statement
Start variant Start variant : : SAP1 SAP1
Cust. matchcode ID Cust. matchcode ID : : D D
Vendor matchcode ID: Vendor matchcode ID: K K
Processing type Processing type : : 1 1
Int. bank determin. Int. bank determin. : : X X
Settings Settings Specifications Specifications

The start variant specifies the account assignment variant for the individual postings.
The matchcode ID and the further processing type determine whether the postings in the batch input
session are made online or in the background.
If you select internal bank determination, the system identifies the bank using the internal
identification (house bank, bank account key) you specify on the next screen.

SAP AG
Processing the Bank Statement (1):
Bank and Payment Advices
: :
House bank House bank : : CITI
Bank account ID Bank account ID : : USD
: :
Control Control
: :
Selection of payment advices Selection of payment advices
Planning type Planning type : : AB AB
Statement date Statement date : :
Planning date from Planning date from : : Planning date to : Planning date to :
: :
Further processing Further processing
Bank posting session Bank posting session
: :

House bank or bank account ID: Here you enter the cash management account name (for internal
bank
determination).
Selection of payment advices: You can select the payment advices entered for the bank
statement
using various criteria.
You can also enter the session names for further processing.

SAP AG
Bank Document / Selection
Bank acct 548333 Bank acct 548333 G/L account 113100 G/L account 113100 C.code FD00 C.code FD00 Currency Currency USD USD
Bank statement items Bank statement items
Tran Tran Value date Value date Amount Amount Doc. no. Doc. no. Cust MC Cust MC Allocation Allocation
1 1 12/23/93 12/23/93 10000 10000 1800000000 1800000000 cust. cust. Hugo Hugo
: :
Outgoing invoice
Doc. no. 1800000000
Master Master
Sort field: cust. Sort field: cust
Outgoing invoice Outgoing invoice
:
Amount: Allocation: Hugo

You use the transaction to control which type of bank posting you are processing, for example, credit
memo, wire transfer or check payment. Transaction types are freely definable in customizing.
Individual documents are selected in subledger accounting by using certain criteria (e.g. document
number) or by using the matchcode (account determination) and additional information (document
determination) such as the amount, allocation, posting date or document date. The selection fields the
system displays depend on the account assignment variant and interpretation algorithm you are using.

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Further Processing

: : Specifications
Post Planning types
Deletion indicator
Display
Overview
:
Temporary dataset
FEB FEB
Settings Settings Bank statement Bank statement
Edit Edit

Bank statements you enter can be displayed, changed or deleted before posting.
The Post option generates the batch input sessions required for the bank account postings and
subledger account postings (postings cannot be made twice).

SAP AG
Summary
l The program for manual bank statement entry generates
the postings for the bank accounts and subledger
accounts.
l Account determination and open item selection can be
carried out using various criteria.

SAP AG
Chapter Customizing the Manual Bank Statement
l Allocating statement transactions to internal
transactions
l Account determination using internal transactions

SAP AG
Transactions
Int. trans Int. trans Text Text
0001 0001 cash receipt via interim account cash receipt via interim account
0002 0002 outgoing check outgoing check
: :
Business volume Manual bank statement Manual bank statement
Trans Trans Int. trans Int. trans Acct mod. Acct mod. Algthm Algthm Text Text
0001 0001 0001 0001 Cash receipt Cash receipt
PAYT PAYT 0002 0002 Check payment Check payment
: :

You have to assign a transaction name (freely definable) to the internal transaction. The transaction
name is used during statement entry. The system uses the internal transactions to find the information
required for posting (posting rules and account determination rules).
Using account modification, you can have the system post to accounts that differ from the standard
account assignment.
The interpretation algorithm specifies which fields the system evaluates for the clearing procedure or
for finding the documents.

SAP AG
Postings
0001 0001 Cash receipt via interim account Cash receipt via interim account
: :
Business volume Manual bank statement Posting Business volume Manual bank statement Posting
Posting Posting
Debit Debit 40 BANK Bank account Bank account
Credit Credit 50 CASH REC Cash receipt acct Cash receipt acct
Debit Debit 40 CASH REC Cash receipt acct Cash receipt acct
Credit Credit

The posting rules and other necessary information (posting keys, accounts, etc.) are found using the
internal transactions.
The posting area determines whether the item is posted to the general ledger (1) or subledger (2).
Accounts are specified by using account symbols. The system uses these symbols to determine the
account number.
Advantage: New table entries are not required for the same type of posting at different banks.
The posting type specifies the posting rules (G/L postings, subledger postings, clearing entries, etc.).
One posting key and account is not entered for posting area 2 (subledger), since the data required for
clearing the item is obtained from the statement (document number, matchcode, amount, allocation
etc.).

SAP AG

Customizing: Posting - Goto - Accounts
Application 0001 Bank statement / check deposit
Chart of accts CAUS
Acct symbol Acct symbol Acct modification Acct modification Currency Currency G/L account G/L account
BANK + + ++++++++++
BANK + USD ++++++++19
CASHREC + + ++++++++09
00 + + ++++++++++
01 + + 479000
:
Bank accounts Bank statement
CITI
CHCK
:
House bank : CITI
Account ID : GIRO
:
Bank account : 91005181
G/L account : 113100
:
Business volume Manual bank statement Posting Accounts Business volume Manual bank statement Posting Accounts

Rules for Account Determination:
1. The account symbol determines which G/L account the system posts to.
2. The system determines the G/L account by using the G/L account number (fully masked entry) that
you
assign to an account ID.
3. Partially masked entries refer to the clearing account that belongs to the G/L account.
4. The system uses the entry in the Currency field to post checks in foreign currency to the required
foreign currency account
5. Specifications in the account modification column are user-definable. They are required by the
user exit
for company-specific posting transactions, for example, for breaking down account transactions
according to accounting clerks, incoming or outgoing payments; or for selecting transactions by
delivery
note number.

SAP AG
Summary
l The transactions on the bank statement are allocated to
internal transactions. These internal transactions control
account determination and the procedure for finding
posting information.

SAP AG
Chapter Customizing the Manual Bank Statement
l Allocating statement transactions to internal
transactions
l Account determination using internal transactions

SAP AG
Transactions
0001 0001 cash receipt via interim account cash receipt via interim account
0002 0002 outgoing check outgoing check
: :
Business volume Manual bank statement Manual bank statement
Trans Trans Int. trans Int. trans Acct mod. Acct mod. Algthm Algthm Text Text
0001 0001 0001 0001 Cash receipt Cash receipt
PAYT PAYT 0002 0002 Check payment Check payment
: :

You have to assign a transaction name (freely definable) to the internal transaction. The transaction
name is used during statement entry. The system uses the internal transactions to find the information
required for posting (posting rules and account determination rules).
Using account modification, you can have the system post to accounts that differ from the standard
account assignment.
The interpretation algorithm specifies which fields the system evaluates for the clearing procedure or
for finding the documents.

SAP AG
Postings
0001 0001 Cash receipt via interim account Cash receipt via interim account
: :
Business volume Manual bank statement Posting Business volume Manual bank statement Posting
Posting Posting
Debit Debit 40 BANK Bank account Bank account
Credit Credit 50 CASH REC Cash receipt acct Cash receipt acct
Debit Debit 40 CASH REC Cash receipt acct Cash receipt acct
Credit Credit

The posting rules and other necessary information (posting keys, accounts, etc.) are found using the
internal transactions.
The posting area determines whether the item is posted to the general ledger (1) or subledger (2).
Accounts are specified by using account symbols. The system uses these symbols to determine the
account number.
Advantage: New table entries are not required for the same type of posting at different banks.
The posting type specifies the posting rules (G/L postings, subledger postings, clearing entries, etc.).
One posting key and account is not entered for posting area 2 (subledger), since the data required for
clearing the item is obtained from the statement (document number, matchcode, amount, allocation
etc.).

SAP AG

Customizing: Posting - Goto - Accounts
Application 0001 Bank statement / check deposit
Chart of accts CAUS
Acct symbol Acct symbol Acct modification Acct modification Currency Currency G/L account G/L account
BANK + + ++++++++++
BANK + USD ++++++++19
CASHREC + + ++++++++09
00 + + ++++++++++
01 + + 479000
:
Bank accounts Bank statement
CITI
CHCK
:
House bank : CITI
Account ID : GIRO
:
Bank account : 91005181
G/L account : 113100
:
Business volume Manual bank statement Posting Accounts Business volume Manual bank statement Posting Accounts

Rules for Account Determination:
1. The account symbol determines which G/L account the system posts to.
2. The system determines the G/L account by using the G/L account number (fully masked entry) that
you
assign to an account ID.
3. Partially masked entries refer to the clearing account that belongs to the G/L account.
4. The system uses the entry in the Currency field to post checks in foreign currency to the required
foreign currency account
5. Specifications in the account modification column are user-definable. They are required by the
user exit
for company-specific posting transactions, for example, for breaking down account transactions
according to accounting clerks, incoming or outgoing payments; or for selecting transactions by
delivery
note number.

SAP AG
Summary
l The transactions on the bank statement are allocated to
internal transactions. These internal transactions control
account determination and the procedure for finding
posting information.

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Chapter Bank Statement: Electronic Entry
l Technical procedure
l Interpreting the note to payee
l Entry
l Postprocessing

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Postings can be made immediately (call transaction). Postings can be made immediately (call transaction).
Bank account session and subledger session can be executed Bank account session and subledger session can be executed
together or separately. together or separately.
Note to payee fields can be interpreted via document number Note to payee fields can be interpreted via document number
or reference document number for the clearing procedure or reference document number for the clearing procedure
(standard). (standard).
Posting rules and account determination are freely definable Posting rules and account determination are freely definable
in customizing. in customizing.
Batch input sessions are generated (a session for bank Batch input sessions are generated (a session for bank
accounts and subledger accounts for each bank statement). accounts and subledger accounts for each bank statement).
Data (MultiCash or BCS) are imported into a temporary dataset Data (MultiCash or BCS) are imported into a temporary dataset
in the SAP System. in the SAP System.

SAP AG
l l Number ranges can be specified for interpretation. Number ranges can be specified for interpretation.
l l Customer-specific item identification (customer master) can Customer-specific item identification (customer master) can
be set up using selection rules. be set up using selection rules.
l l Posting entries can be broken down (i.e. by A/R clerk) by using Posting entries can be broken down (i.e. by A/R clerk) by using
the bundling option. the bundling option.
l l User exits can be created for specific interpretation of note to User exits can be created for specific interpretation of note to
payee fields: payee fields:
- - to generate clearing information to generate clearing information
- - to alter account determination to alter account determination
- - to distribute transactions to several sessions per bank to distribute transactions to several sessions per bank
statement and posting area statement and posting area
l l Posting proposals that cannot be cleared can be subsequently Posting proposals that cannot be cleared can be subsequently
processed directly or in the batch input session. processed directly or in the batch input session.
l l Lists: Lists:
- - bank statement bank statement
- - posting proposals posting proposals
- - line items that are not usable line items that are not usable
- - processing statistics processing statistics

SAP AG
Banks Banks
Manual Manual
bank statement bank statement
Check deposit Check deposit
Area-specific
processing
Interpretation
via user exit
Bank Bank
data buffer data buffer
Subledger Subledger
Bank-related Bank-related
Batch Input
Batch Input
SWIFT MT 940 SWIFT MT 940
BACS BACS UK UK
ETEBAC ETEBAC F F
Fides ARS Fides ARS CH CH
Multicash Multicash D D
BCS BCS NL NL
CH CH
A A
Cash Cash
Direct Direct
posting posting
Electronic Bank Statement - New Formats Supported

BCS: Banking Communication Standard (predefined by banks).
Import procedure:
FTAM (not coded), ZVDU (coded). With the bank data, the conversion program (e.g.
MultiCash) generates two files for further processing, a statement file and a line item file
(AUSZUG.TXT, UMSATZ.TXT).
SAP information (chart of accounts, company code, internal transactions, etc.) is added to the data in
these files during conversion. The standard program creates two batch input sessions (general ledger,
subledger) per account statement. A user exit can carry out your company-specific processing
transactions, for example, sessions for cash inflows and outflows, for clearing entries or for each
accounting clerk.
The session for bank postings should be generated and processed first due to system performance
and processing reasons.

SAP AG
Interpreting the Note to Payee
Bank Bank
data data
buffer buffer
Bank index Bank index
BNO.: BNO.: XY XY
ACCT: ACCT: 123 123
CUST: CUST: cust cust
Bank Bank
data data
buffer buffer
Batch Batch
input input
ADVICE ADVICE
ADVK ADVK
ADVP ADVP
ADVR ADVR
Customer
Post-
processing
Item not
identifiable /
cannot be
posted
Name: . . .
. . .
Sel. rule: 001
Customizing
Sel. rule: 001
= reference
document
number
Post
directly
Note to
payee: 007
Wire transfer
. . .
BNO. xy acct

The system determines the payer by using the payers bank details (secondary index).
The selection rule from the customer master record specifies which details the customer pays with
(e.g. reference document number).
The system searches the lines of the note to payee on the bank statement according to these criteria.
You can have the system read and clear the documents it finds either directly or via batch input.
Immediate posting: If a document cannot be identified or cleared (e.g. underpayment), the system
creates a payment advice that you can manually process later.

SAP AG
Electronic Bank Statement
Import Import
X X Import data Import data
Elect. bank statement format Elect. bank statement format M M
Statement file Statement file A:\STATE.TXT A:\STATE.TXT
Line item file Line item file A:\ITEM.TXT A:\ITEM.TXT
PC upload PC upload
Post immediately Post immediately Only bank postings Only bank postings
Generate batch input Generate batch input 1 1 Session names Session names
. . . . . .
Cash mgmt advices Cash mgmt advices 02 02 Planning type Planning type Summarization Summarization
User exit User exit
Selection field Selection field DOCNO DOCNO 12 12
. . . . . .
Bundling Bundling 1 1
. . . . . .
Print bank statement Print bank statement
Print posting log Print posting log

To have the system read the data, select the Import data option.
Format: ID for the format you require, for example M (MultiCash).
Statement file and line item file: Enter the file names including the path name.
The session for bank postings should be generated and processed first due to system performance and
processing reasons. Items cannot be posted twice.
Logs are helpful during program configuration.
Post immediately: posting via call transaction
Cash management advices: A payment advice is created for each line item (only during batch input).
Summarization: One payment advice is created for all line items with the same value
date.
Bundling: Items are combined according to particular criteria (e.g. accounting
clerk).

SAP AG
Electronic Bank Statement: Printout
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
CitiBank
Account holder: Alford Inc.
Bank no.: 66010075 Account number: 179097-756 Statement number: 00051
Currency: USD Statement date: 09/24/1993
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
No. Value Pstng Note to payee Posting text BTC Journal Amount
date date
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Beginning balance 33,900.00
-----------------------------------------------
00001 09/24 09/24 CHECK DEPOSIT 070 30,000.00
00002 09/24 09/24 Document 1500000285 004 - 3,300.00
00003 09/24 09/24 Your invoice 1710000865 CREDIT MEMO 0XX 207,000.00
Doc. date 04/03/93
00004 09/24 09/24 Check 1500000282 001 - 600.00
00005 09/24 09/24 Inv. from 06/03/93 051 10,700.00
Inv. no. 17100008111
cash discount 3 %
00006 09/24 09/24 Inv. from 06/12/93 051 1,000,000,000.00
---------------------------------------------
Debit total 0.00
Credit total 0.00
---------------------------------------------
Ending balance 1,000,277,700.00

Unlike the paper statement, the electronic statement does not separate statements and transaction
explanations.
If the selection field is set to 'BELNR' or 'XBELNR', the system searches for
- the document number or external document number in the Note to payee field when incoming
payments have been made, or
- the document number when outgoing payments have been made.

SAP AG
Company code FD00
House bank CITI
Account ID CHCK
. . .
Statement status 1 All line items
Bundle number
. . .
Posting area 2 Subledger
Posting method A Display all screens
Electronic Bank Statement: Postprocessing

Transactions the system cannot identify or post are manually processed afterwards.
For the required bank statement, you select:
all line items or only those not posted,
the bundling number,
the G/L postings or the subledger postings,
whether all screens or only incorrect screens are displayed.

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Important Notes
Generate / process the session with bank Generate / process the session with bank
account postings first (performance)! account postings first (performance)!
Transactions cannot be posted twice Transactions cannot be posted twice
(status management). (status management).
Once a transaction is in a session, it is Once a transaction is in a session, it is
considered to be posted. considered to be posted.

SAP AG
Summary
l The electronic bank statement generates the postings for
bank accounts and subledger accounts via batch input or
directly.
l Customers are identified by interpreting the note to payee
or the details of the sending bank.
l Open items are identified using the document number or
selection rules (customer master).

SAP AG
Chapter Customizing the Electronic Bank
Statement
l External transactions (BTC) and internal transactions
l Interpretation of the note to payee

SAP AG
Transactions
Allocate Banks Internal transactions
Bank key Bank acct Trans. type
100 200 30 548333 MT940
100 200 30 888333 MT940
300 500 00 6097612 MT940
622 512 50 + MT940
. . .
Int trans. Text
1000 Credit memo
2000 Debit memo
. . .
C CC C
C CC C
Business volume Electronic bank statement Internal transactions Business volume Electronic bank statement Internal transactions
Allocate Transactions C CC C Posting C CC C
Ext. trans. Sign Int trans. Int algthm Internal transaction: 1000
051 + 1000 1 Posting rule
051 - 2000 1 Account assignment
052 + 1000 1
. . .

Recommended customizing procedure:
1.) Define the transaction (user-definable). Transaction types are used to convert typical bank
transactions (external transactions) into system-specific internal transactions.
2.) Define the internal transactions. The system use these transactions to determine the posting rules.
(Usually the internal transactions for the manual bank statement can be used.)
3.) Allocate the external transactions (e.g. outgoing payments) to the internal transactions (Note the
+/- sign!).

Advantage: The same transaction can be used for several external transactions from different
banks.

4.) The system posts to the (internal) bank accounts and subledger accounts by using the internal
transactions and the posting and account determination rules stored for these transactions (see
manual bank statement in customizing).

SAP AG
MT940 051 1000
MT940 Wire transfer 1000
:
Bank statement Bank statement
Customizing Customizing
Trans. type Trans. type Ext. trans. Ext. trans. . . . . . . Int. trans. Int. trans. : :

BTC BTC : : 051 051
. . . . . .
Posting text Posting text : : Wire transfer Wire transfer
: :
C CC C
C CC C
C CC C
Electronic bank statement Posting and bank allocation Electronic bank statement Posting and bank allocation

The system performs a three-step search on the bank statement in order to supply the internal
transactions with the information (external transaction) required for the posting rules and account
determination.

Search Hierarchy
1. Business transaction code (BTC)
If this field is not specified or is specified with 0XX. . .
2. Posting text
3. If there is no entry here, the transaction cannot be posted (subledger).
But if an internal transaction cannot be found for an external transaction, a message to maintain the
appropriate table is output in the log.

SAP AG
Clearing Open Items
OI 1500000285
OI 17100008111
Bank statement
:
Note to payee . . .
Check 1500000285
Inv. no. 17100008111
:
Vendor
Customer

The system requires the following bank statement information for the standard program to find and
clear an open item in the subleger (subledger session):

Customer clearing Vendor clearing

1. document number or 1. document number or
2. reference document number or 2. amount
3. amount

SAP AG
Chapter Summary
l The business transaction code determines the posting
procedure and account determination within bank-related
accounting.
l The interpretation of the note to payee specifies
a) the account determination and
b) document determination within subledger accounting.
l Account determination (subledger) can also be made by
interpreting the details of the sending bank.

SAP AG
Chapter Liquidity Forecast
l Projecting collections and disbursements from FI,
SD and MM
l Individual planning and planned items
l Automatic maintenance (reversal, document change)
l Customer payment history
l Grouping by planning groups
l Additional information (e.g. blocked items, special
transactions)
l Currency exposure
l Variable breakdown of planned items (days, weeks,
months)

SAP AG

Integration: Liquidity Forecast

FI FI FI FI
Planning and
analyses
Financial Accounting Financial Accounting Cash Management Cash Management
Accounts receivable Accounts receivable Liquidity forecast Liquidity forecast
Payment history Payment history
Sales Sales Purchasing Purchasing
customer orders customer orders purchase orders purchase orders
SD SD MM MM

SAP AG
Requirement I: Planning Groups
France (E4) France (E4)
Other Other
foreign(E5) foreign(E5) Cash discount Cash discount
method (E2) method (E2)
Bank collection Bank collection
(E1) (E1)
Net Net
method (E3) method (E3)
France France
FI = FI =
posting /sales posting /sales
FW = FW =
bills of exchange bills of exchange
XA = XA =
block reason 'A' block reason 'A'
Groups : Groups :
- customers with
same history
- of particular interest
Levels: Levels:
balance specifications
by levels
Customers Customers

Like vendors, customers are divided into planning groups
Criteria are user-definable, for example, for net payment method.
Levels provide information about the type of account transaction.

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Account number Account number Cust Cust1
Company code Company code FD00
: :
Planning group E2 Domestic Planning group E2 Domestic
Requirement II: Master Record
Ready for entry Ready for entry
A1 . . . . . .
. .
E2 Domestic
customer
. . .

You have to enter a defined planning group in the master record in order for the system to transfer data
between the customer/vendor accounts and the liquidity forecast.

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Liquidity Forecast
_______________________________________
Liquidity forecast . . . . . X X
:
Grouping . . . . . . . . . . . . . . . TOTAL TOTAL
Display as of . . . . . . . . . . . . . . . Date Date
:
:
Display type . . . . . . . . . . . . . . . . KV KV
Company code . . . . . . . . . . . . . FD00 FD00

The liquidity forecast menus offer the same functionality as in the menus for the cash management
position.
Special feature: Display type CD (cumulative display according to distribution)
DD (delta display; inflows and outflows by distribution)
(see 16-3)

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Payment History - Planning Date
Account number Account number Cust1 Cust1
Company code Company code FD00 FD00
Rec pmnt hist.: X Rec pmnt hist.: X
X : planning date planning date = Csh dis.1 +/- pmnt history Csh dis.1 +/- pmnt history
if customer usually takes if customer usually takes
cash discount cash discount
Net +/- payment history Net +/- payment history
if customer usually makes if customer usually makes
net payment net payment
'_' : planning date = planning date = cash discount 1 due date cash discount 1 due date

The system takes account of the customer payment history (cash discount) when determining the
planning date if you select the Rec pmnt hist. field in the customer master record (record payment
history).
The last three periods in which payments have been made are taken into account (short term payment
history).

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Outstanding Checks and Bills of Exchange
Chart of accounts : Chart of accounts : GKR GKR
G/L account G/L account : : checks payable checks payable
: :

The program for outstanding debts lists balances, line items, and float times of checks and bills of
exchange.

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Integration : Payment Blocking Indicator
Payment blocking indicator A
in the master record
Vendor / customer Vendor / customer
(change not automatic)
Payment blocking indicator A/R
in the line item
X + pay. block indicator X + pay. block indicator
FI document entry FI document entry
in document in document
XA
XR

Automatic maintenance: Items are automatically transferred to the block level after the payment

blocking indicator is set.
Once you set a block in the master record, it applies to all documents posted thereafter.

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Integration : Special Transactions
validation validation
Special G/L level
Transaction type Transaction type
Validation Validation
FI document entry FI document entry
in the document in the document
F0
FF/FW

Line items resulting from special transactions are transferred to a special level.

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Features
Projecting receipts and disbursements from FI, SD and MM
Individual planning and planned items
Automatic maintenance (reversal, document change)
Customer payment behavior included in the forecast
Grouping by planning groups
Additional information (blocked items, special transactions)
Currency exposure taken into account
Variable breakdown of planned items (days, weeks, months)
Liquidity Forecast Liquidity Forecast

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Chapter Summary
l The liquidity forecast is used to monitor incoming and
outgoing payments. All documents posted in subledger
accounting are aggregated online.
l Payment history and document changes are also taken
into account online.
l The cash management position and liquidity forecast
produce the total liquidity of a company.

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Chapter Customizing the Liquidity Forecast
l Field selection and configuration
l Display types
l Screen control
l Levels (blocked)
l Integrating special transactions
l Integrating MM and SD

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Master Data Subledger Accounts
Change customer / vendor Change customer / vendor
Customer / Vendor Controls Customer / Vendor Controls
Account Account
group group
Transaction-dependent Transaction-dependent
field selection field selection
Company-code-dependent Company-code-dependent
field selection field selection

You can control the field status on particular screens directly in the Cash Management IMG. You can
do this at different levels:

- for all customers or vendors of an account group or a company code

- for all customers or vendors that are created or changed in accounting (sales, centrally).

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Level Level +/- sign +/- sign Days Days Percentage Percentage
UA UA
UA UA
UA UA
NI NI
NI NI
NI NI
NI NI
NI NI
0 0
1 1
1 1
0 0
1 1
2 2
1 1
2 2
+ +
- -
+ +
+ +
- -
- -
50 50
30 30
20 20
40 40
20 20
10 10
20 20
10 10
Cash management position Cash management position
Liquidity forecast Liquidity forecast
Display type : Display type : C / D C / D
. .
. .
. .
. .
. .
. .
Structuring Distribution function Structuring Distribution function
Percentage Distribution

When you select the cumulative and distributed display as well as the display distributed by inflows
and outflows, the system will distribute memo records and summary records for each level according to
the specifications that you can define.
Items are distributed before or after the determined value date using the +/- signs, days and percentages
that you specify.

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Planning Data: Manual Definition
Plng group Plng group Level Level SCn SCn Short text Short text Description Description
A1 F1 X D. cust. Domestic customers
E1 F1 High risk High risk customers
:
Customer Customer
CC: FD00 CC: FD00 Extras Extras
: : Additional data Additional data
: : Planning group E1 Planning group E1
: : : :
Planning date Planning date 08/04/93 08/04/93
Planning level Planning level F1 F1
: :
Master data Subledger accounts Master data Subledger accounts

Planning groups differentiate customers and vendors according to particular characteristics (customer
in France), behavior (takes cash discount) or risks (credit rating). They are user-definable and are
entered in the Planning group field in the customer or vendor master record.
If you select the Screen control option (SCn), the Planning date and Planning level fields are
ready for input when documents are entered or changed. You can overwrite the values the system
automatically defaults for these fields.

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Blocked Documents
F1 XX Released for payt
F1 A XA Payment blocked
F1 R XR Invoice verification
:
Level Block ind. Blocked level . . . Description
Structuring Maintain blocked levels

You can allocate blocked levels or block indicators to the standard levels.
The system then assigns the amount to the blocked level when the posting is made with a payment
block. If the document is unblocked, the amount is transferred to the standard level (see 8-9).

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Special G/L Transactions
Structuring Special G/L transaction levels Customer/Vendor Structuring Special G/L transaction levels Customer/Vendor
Special G/L levels Special G/L levels
Special G/L Special G/L
Acct type Acct type Sp.G/L Sp.G/L Sp.G/L ind Sp.G/L ind Description . . . Description . . .
D D F F Pmt req Pmt req Down payment request Down payment request
D D W W Bill/exch Bill/exch Bill of exchange receivable Bill of exchange receivable
: :
Choose Choose
Special G/L indicator Special G/L indicator W W
Recon. acct Recon. acct Special G/L acct Special G/L acct Planning level Planning level
140000 140000 125000 125000 FW FW
: :
Planning levels Planning levels
Level Level Source Source Short text Short text Long text Long text
FW FW SUBLDG SUBLDG Bill of exchange Bill of exchange
: :

Special G/L postings can be displayed and monitored in a special level in the liquidity forecast. Two
levels are already defined in the standard system:

- down payment request (FF)

- bill of exchange receivable (FW)
Even if a bill of exchange is used (discounting), it remains in the planning level until the commitment is
deleted.

Note the incoming payment in the bank clearing account in the cash management position. The
discounted amount of the bill of exchange is displayed in this account until the commitment is deleted.

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Integrating Orders and Purchase Orders
Tools Tools
Production startup Production startup Customizing Customizing
Update MM Update MM : : X X Planning level Planning level
Update SD Update SD : : X X
Source Source
KFD KFD
FDSR FDSR
MM MM
Purchase Purchase
order order
EP EP EP EP
SD SD
Order Order
Invoice Invoice
Cash Cash
discount discount
Table RWCA Table RWCA
Activate CM: X Activate CM: X

Procedure

1. Maintain the source symbol (MM,SD).

2. Maintain the planning levels (MM,SD).

3. Maintain the logistics levels (2 = == = MM etc.).

4. Select the option to integrate SD.

5. Select the option to integrate MM.

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Integrating Orders and Purchase Orders
Level Level
Logistics Logistics
Code Code Short text Short text Level Level
002 002 Purchase order Purchase order MM MM
101 101 Sales orders Sales orders SD SD
Subledger accounts Subledger accounts
Levels Levels
Levels Levels Source Source . . . . . .
MM MM MMF MMF
SD SD SDF SDF
Source Source
Source Source CM posit. CM posit.
MMF MMF
SDF SDF

Purchase orders (MM) and orders (SD) are displayed in special levels within planning.
You can freely define these levels. They require a special source symbol.
The internal code you specify integrates orders and purchase orders into Cash Management.

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Chapter Summary
l Subledger accounting is integrated with Cash
Management by specifying planning groups in the master
records of subledger accounts.
l You can change the planning date that the system
automatically specifies during document entry.
l Down payment requests, bills of exchange, purchase
orders, and orders can be integrated online.

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Chapter Customizing Data Transfer and
Reorganization
l Source symbols
l Data transfer
l Data comparison
l Reorganization

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Cash mgmt Cash mgmt
position position
Liquidity Liquidity
forecast forecast
Tools Set up data Tools Set up data
not on open item basis (line items) not on open item basis (line items) on open item basis (documents) on open item basis (documents)
LC FC
SKC1A SKC1B BSIS BSIK BSID
RFFUEB00 RFFUEB00 RFFDKU00 RFFDKU00
FDSB FDSR
Transferring Data from Accounts with Open
Items and without Open Items

Data for Cash Management should be set up per batch input (performance).

- You can simulate the data transfer online. When doing this, make as many selections as possible.

- You can transfer data from customer or vendor accounts without making any specifications (only
batch).

- The system will propose the minimum selections (fiscal year, reporting period, value date) for
transferring accounts (resident) that are not managed on an open item basis. These minimum
selections are required for summarizing the account balances, and can be overwritten.

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Data Security
Line items
Summary records
FI
BRF
FDSB
SD
FDSR
MM
Same total ? Same total ?
Tools Compare Cash Mgmt Tools Compare Cash Mgmt

To check transferred data, you can break down the summarized documents from FI, MM, SD (planning
date, group, level) and compare the totals with the summary records in Cash Management.
With the open items (customer, vendors, G/L accounts), programs RFFDEP00 (FI), RFFDMM00
(MM) and RFFDSD00 (SD) determine the data that make up the summary records. The format of the
list should be summarization level 1, which represents one summary record (that can be compared).
Program RFFDIS40 displays the summary records that are created during planning. It has the same sort
sequence as the one for the programs described above.

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Tools: Reorganize Cash Management
memo records/ memo records/ bank and clearing bank and clearing customer and customer and
archived archived account summary account summary vendor summary vendor summary
memo records memo records records records records records
activated activated activated activated
memo records memo records planned items planned items
summarized summarized summarized summarized
FDSB FDSR
Reorganization Reorganization
FDES

Tables in Cash Management must be reorganized on a regular basis to increase memory and improve
access time.
The reorganization program

- deletes expired summary records,

- ignores blocked records,

- summarizes summary records at the summarization date
(if value date is before summarization date),

- deletes memo records (if expiration date of memo record is before expiration date you specify for
the reorganization run),

- deletes archived memo records after the retention period has run out, and

- lists all summary records and memo records (if you select this option).

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Summary
l The source symbol specifies which data is integrated into
the cash management position and the liquidity forecast.
l Before data is transferred, Cash Management must be
activated in the respective company code.
l Data from accounts managed on an open item basis and
data from accounts that are not managed on an open item
basis are transferred separately.
l Datasets from FI, SD and MM can be compared with
planning data by using the appropriate programs.

PAAC10 Accounting and Controlling

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Determine depreciation areas

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