FICO ( SUMMARIZED)FISCAL YEAR

1) Fiscal year types.a) Year Specific/Year dependent Fiscal year.b) Year independent Fiscal year

1) Calendar Year.2) Non Calendar year.

2) Fiscal Year Variant only defines the number of periods and their start and finish dates.

3) SAP determines the posting period from the posting date.4) Posting periods can be defined up to 12 and Special periods up to 4.5) Posting periods can be up to 999 and Special periods can be up to 99 Posting

periods more than 16 (Including special periods) can only be used for special purpose ledger applications.

6) A shortened fiscal year is a fiscal year having less than twelve months. The definition of a shortened fiscal year is always year-dependent, since it represents a year-related exception.

7) For year specific fiscal year Posting periods for each fiscal year needs to be defined in configuration with reference to calendar years.

IMG: Financial A/cing>Financial A/cing Global setting>Fiscal Year>Maintain Fiscal year variant.

CURRENCIES

1) For Every combination of two currencies different exchange rates can be maintained which can be distinguished using Exchange rate types:i) Historical Rate. ii) Bank selling rate. - Biii) Bank buying rate. - G IV) Average rate. - Mv) The rate on certain key dates.

2) A Currency key must be assigned to every currency used. A currency key can have a validity date.

3) The relationship between currencies must be maintained per exchange rate type and currency pair using translation ratios.

4) For maintaining exchange rates for each exchange rate types, one of the following tools can be used.a) Inversionb) Base currencyc) Exchange rate spreads.

5) Using report RFTBFF00/RFTBDF07 (SE38) enables to transfer external market data in multi cash file form to update automatically the exchange rate table.

6) Direct quotation : One unit of foreign currency is quoted for the local currency.

1 US$ = 46 Rs.Indirect quotation: One unit of local currency is quoted for the foreign currency.

1 Rs. = 0.0217 $

IMG path for defining currency IMG>General Settings>Currencies>Check Exchange Rate Types.

MASTER RECORDS

GENERAL LEDGER MASTER RECORDS

1) There are 3 steps to create and use a chart of accounts (COA)a) Define COAb) Define the properties of the COAc) Assign the COA to Company codes.

2) The COAs is a variant that contains the structure and the basic information about general ledger accounts.

3) The Definition of COA contains a) Four digit COA key.b) COA Name.c) Maintenance language,d) Length of the G/L Account number.c) Integration with Controlling (CO) Manual/Auto creation of Cost Elements.d) Group Chart of accounts.e) Status Block indicator.

4) Length of G/L accounts can be from 1 to 10 digits.5) One COA can be assigned to several company codes.6) GL Master contains COA segment and Company code segment. 7) The Information entered in the COA segment for a G/L account applies to all

company codes using that COA.8) The Chart of account segment contains following details:

i) Type/Description - Account group.- P/L or Balance sheet item.- Description Short/Long text.- Group Chart of Account G/L. no.

ii) Key word Translation. Key words in COA- Translation.

iii) Information - Info in COAs- G/L text in COA.s

9) The Company code segment of G/L master contains:i) Control Data. Account Control Only bal in local currency, Exchange rate diff, Tax Category.

A/c Management in Company code.- Open/Line item management,

i) Bank interestii) Information.

10) Account Group Controls - Number ranges of the account.- Status of fields in the company code segment of the master record.

11) Field status has following properties - Hide.- Display.- Required entry.- Optional entry.

12) Fields displayed in G/L account master record are controlled by:

1) Account group2) Transaction specific controls (Create/Change/Display).

13) Field status group assigned to a G/L codes in Company code segment is to control the field status of the financial transaction entered in that G/L account.

14) While creating Reconciliation account G/L master Reconciliation a/c type needs to be assigned i.e. D Accounts receivable or K Accounts payable

15) You cannot post amounts directly to reconciliation accounts.16) You can only activate or deactivate open item management if the account has

a zero balance.17) If the account currency is the local currency the account can be posted to in

any currency.18) Account in Foreign currency as account currency can only be posted to in that

foreign currency.19) The group chart of account is assigned to each operational chat of accounts. If

this is done Group account number in COA segment of the Operational COAs is a required entry field.

20) Country COA/Alternative COA number is entered in company code segment. This makes alternative G/L a/c field in Company code segment of the G/L master record a required entry.

21) Different accounts of one operational COAs can refer to the same group g/l account. However one country chart of a/c GL code can be referred to only one operational GL a/c.

21) Every country chart of accounts number can only be used once.22) If all the companies are using the same operational COA then consolidation is

possible otherwise Group COA is used for Consolidation.23) G/L accounts with open line item management must have line item display

activated. 24) GL account number ranges are always external where as for customer/vendor it

can be internal as well as external number assignment.25) For Cross company code controlling, companies must use the same chart of

a/cs.26) Number intervals for G/L account master data can overlap.27) The fields Account currency and Field status Group are always required

entry fields. This status cannot be changed.28) Reconciliation accounts are general ledger accounts assigned to the business

partner master data to record all transactions in the sub ledger.

IMG: Financial A/cing>G/L A/cing>Master records>Preparations >Additional Activities>Define screen layout for each transaction 9Create/Change/Delete)

CUSTOMER/VENDOR ACCOUNT MASTER

01) Customer/Vendor account masters have three segments.i) General Data at the client level. (Address/Payment/transactions)ii) Company Code Segment. (A/c Management/Payment Transaction/

Correspondence/ Insurance or withholding Tax)iii) Sales (for Customer) /Purchase (Vendor) area segment.

02) The Customer/Vendor account number is assigned at Client level.03) Customer/Vendor Account group Controls:

i) The Number Range of the accounts.ii) Whether the account is a one-time customer/vendor.ii) The status of fields in the master records.

04) Line item Display and open line item management are configured as standard for every customer/vendor account.05) Customer/Vendor accounts can have either internal or external number

assignment.06) There are separate number ranges for customer and vendor accounts. Number

ranges must not over lap for customer/vendor.07) Each number range can be assigned to one or more account groups.08) In customer/vendor account groups account number ranges are assigned by a

variant, however in GL account group number ranges are entered for each a/c group.

09) The lay out of Customer/Vendor master data screens can be affected by :i) Account group specific Field status group.ii) Transaction-specific field status group.iii) Company code specific field status group.

10) Field status of a FI transaction in a Customer/Vendor Sub ledger a/c is also controlled by field status variant assigned to reconciliation account master of Customers/Vendors, while creating.

11) Customer/vendor specific data for one-time customers/vendors is entered in the document during posting.

12) Dual Control Principle: If you define a field in the customer/vendor master record as, sensitive the corresponding customer/vendor is blocked for payment if the entry is changed.

13) If a customer is also a vendor, or vice versa, the payment and dunning program can clear open items against each other.

14) At the client and company code level, you can enter an alternative payer/payee. The entry in the company code segment has higher priority than the entry at client level.

BANK ACCOUNTS

1) Bank Master can be created four ways :i) When entering Customer/Vendor master records or in the customizing

for house banks.ii) Using the create bank transaction in the accounts payable/receivable

master data menu.iv) The bank directory can be imported from disk/tape using program

RFBVALL_O.v) Customers using lock box function can create a batch input session that

automatically updates customer banking information in the master records.

2) Bank key contains - Bank Master data contains Bank name, Region (State), Address

3) Bank key is assigned to a house bank.4) GL a/c code is assigned to the house bank along with Account id.5) Steps to create House bank

i) Create bank master with bank key (E.g. 01)

ii) Create House bank (E.g. ICICI) Enter House bank id, Country, Bank key, Contact person + telephone numbers.

iii) Create bank a/c Enter House bank id already created (It will take bank address from already assigned bank key to that house bank id), Bank id (E.g. SB), Description (E.g.-Savings bank a/c), Bank a/c no, Currency, G/L a/c.

iv) Change G/L a/c in tab -create/bank/interest, enter house bank id and Account id.

Summary(a) Create -Bank key, (b) Create house bank id and add bank key.(c) Create bank a/c with Account id and assign GL a/c.(d) Modify G/L a/c and assign House bank+Account id.

6) For every bank a/c G/L account must be created. This G/L account is assigned to the bank a/c and vice versa. Both accounts have to have the same account currency.

7) In the Customer/Vendor master record, the field Bank Type is used to distinguish between different banks.

8) Using the house bank id and the bank types the payment program determines the banks to be used.

9) Each bank a/c is reflected in the SAP system by a combination of house bank ID and account ID (bank type).

10) The bank group is used for classifying banks. The key is freely assignable. The aim of classification is to group banks together in such a way that payment transactions within a group can be carried out as fast as possible (payment optimization).

11) The SWIFT code is used for identifying banks in international payment transactions.

12) Every bank master record is identified by the bank country and bank key.

DOCUMENT CONTROL

DOCUMENT STRUCTURE / CONTROL

1) A document is saved for every posting. Every Document is uniquely identified by the Document Number, Company Code and Fiscal Year.

2) A Document contains Document header + 2 to 999 line items.3) Document Type : Controls the Document header and classify the business

transactions to be posted.Posting Key : Controls the Line items.

4) Document types are defined at client level. Document types define the following:a) Number ranges for Document number.b) Account types permitted for postings. And alsoc) The field status of document header Text and Reference number in the Document header.d) Whether the invoices are posted with net procedure.

5) Standard Document types are :

KR Vendor Invoice DR Customer Invoice.KG Vendor Cr.Memo. DG Customer Cr.Memo.KZ Vendor Payment DZ Customer Payment.

AB General Document SA G/L a/c posting.6) Document numbers can have internal or external number assignment.7) Up to a future fiscal year Number range will continue irrespective of year end.

For each fiscal year At the start of a new year the system starts the number assignment again at the start of the number range. (You need to define number range for every new fiscal year)

8) The document number range must not over lap.9) Document type AB allows postings to all account types.10) One number range can be assigned to several document types.11) Posting keys are defined at client level.12) Posting keys control:

i) On which type of account the line item can be posted toii) The item is posted as a Debit or Credit.?iii) The field status of additional fields.In addition to this posting key specifies the following:Whether line item is connected to payment transaction or not.Whether posting is sales relevant.

13) Document line item fields are controlled by :a) G/L Account specific field status group assigned to the G/L account

while creating. (Account specific field status groups are summarized under field status variant which is assigned to company code) If thedocument is posted to a sub ledger a/c, the field status group of the reconciliation a/c is used.

b) Posting key specific field status group.(The field status HIDE cannot be combined with the field status REQUIRED entry

which causes an error.)14) Document type does not have default posting key or vise versa. For each FI

transaction (E.g. Invoice, Credit memo, Out going payment) you can define a document type and default posting key at:

IMG:FI A/cing>F.A.Global Settings>Document>Default values for document processing>Default values.

(E.g. When posting outgoing invoices, you use the document type "DR" and posting key "01". You can store these specifications in the system. They are proposed by the system when you call up the corresponding transaction).

POSTING PERIODS

IMG: FI.A/cing> F.A.Global settings>Document>Posting Periods> Open and close posting periods.

1) Several Company codes can use same posting period variant.

2) The SAP system automatically determines the posting period and fiscal year based on the posting date entered. (Only special period needs to be manually changed)

3) The posting period variant is assigned to the company code.4) Posting periods are defined in the fiscal year variant, Closing/opening posting

period are carried out in posting period variant.5) The posting period variant must contain at least the account type +.6) During year closing, two period intervals (Normal and special periods) must be

open at the same time.7) In the document header, the periods assigned to the account type + are

checked with posting date, whether posting period is open for that date or closed. At the line item level, the system checks the account type of the posting key to ensure that the period is open for the assigned account type.

POSTING AUTHORISATION

IMG: FI.A/cing> F.A.Global settings>Document>Doc Item> Define tolerance groups for Employees.

1) The maximum amounts are defined per company code in TOLERANCE GROUP. (This is also where the payment processing of payment differences is controlled)

2) In the tolerance groups you can enter Upper limits for the following :i) Total amount per document. (The posting amount is the total of all

debit items or, similarly, the total of all credit items.)ii) Amount per customer/vendor item. (Limit is per customer, one

document with more than one customer/vendors can be entered) The restriction does not apply to automatically created line items, for example, during payment settlements.

iii) Cash discount which user with this tolerance group is able to grant.3) If a user is not assigned to any special tolerance group, then entries in the

tolerance group ___ (blank) are valid for them. (This is default tolerance group)

SIMPLE DOCUMENTS

1) Document header contains: Document and posting date, Doc, header text, company code, Reference no, etc.

2) For each FI transaction code (E.g. Invoice, Credit memo, G/L entry F-02) you can define a document type and default posting key. (You can over write these default values while entering document.)

3) In Enjoy transactions : while entering customer/vendor Invoice/Cr.Memo transactions Vendor/Customer (Business partner) master data can also displayed along side the a/c name, address and bank details, and open line items can be accessed by pressing Open Items button. Entry screen also contains a/c balance display.

4) In Enjoy transactions via Tree you can access screen variants, a/c assignment templates and held documents at the left side of the screen.

5) You can enter explanatory text for line items with * in front of the text so as to print this text in dunning notices and payment advice notes.

6) In customizing you can define text templates under 4 digit key, these text templates are copied into line item when you enter the relevant key (E.g. DP = DOWN PAYMENT). While entering 4 digit key = needs to be entered before the key.IMG:FI A/cing>Doc>Line Item>Define texts for line items.

POSTING CONTROL

DEFAULT VALUES

1) Parameter IDs allow users to set default values for fields whose value does not change very often, e.g. Company code, Currency.

2) From G/L, A/P, or A/R posting screen, using editing option you can configure your screens for the following areas:i) Document entry: Users can hide irrelevant fields.ii) Document Display: select different display options.ii) Open Items: Users choose line layout displays and posting options for

processing open items.3) User specific default values will be applicable through out the system.4) In the system you can control whether the fiscal year/value date is proposed

when you display or change document.5) Some sources of values that are defaulted by the system for document entry

are:User Master records Parameter memorySystem Data Account master recordAccounting functions.

DOCUMENT CHANGE RULES

1) Certain Fields in both the document header and the line items can be changed.Document Header: Only the reference number and text fields can be changed.Line Items: The System does not permit changes to the amount, the posting key, the account or any other field that would affect the reconciliation of posting.

2) Following information is stored by system when a document is changed :The field that was changed, new and old value, user name who changed, time and date of the change.

3) Conditions for changing a field are predefined, they are: The posting period is still openThe line item is not yet cleared.Line item is either a Dr. in a customer a/c or Cr. in a vendor a/c.The Document is not a Cr. Memo for an invoice.The document is not a credit memo from a down payment.

(Above rules need to be clicked and selected for making it a condition to change a field in any document)

4) You can differentiate between document change rules according to the following criteria:Account Type : Customers/Vendors/G/L a/cs.Transaction Class: Spl G/L transactions for BOE and down payment.Company Code: If the field is blank the rule applies to every company code.

IMG : FI Ai/cing>FI A/cing Global Settings>Doc>Line Items>Document change rules,line items

DOCUMENT REVERSAL

1) A document can be reversed by:Normal Reversal Posting. Negative Posting.

2) The reversal reason key controls whether the reversal date is allowed to differentiate from the original posting date.

3) Documents with cleared items can not be cleared. The document must first be reset.

4) Pre requisites for negative reversal are:i) The company code permits negative postings.ii) The reversal reason must be defined for negative reversal.

5) Negative posting subtracts the amount from wrong amount posted from the same side (Debit or Credit)

IMG: FI A/cing>G/L A/cing>Business transactions>Doc Reversal>Permit negative posting/Define reason for reversal.

TERMS OF PAYMENT AND CASH DISCOUNT

1) The Payment terms are used to define: Base line date for due date calculation, Cash discount periods, and Cash discount percentage rates.

2) Terms of payment (TOP) can be entered in Company code Segment, the Sales area segment, and the Purchasing organization segment of a customer/vendor master record.

3) If the invoice is created in FI or SD or MM the terms of payment is proposed/defaulted from Company code segment, Sales area segment or Purchasing organization segment respectively. The proposed terms from the master data can be over written during document entry.

4) When you enter a vendor invoice, you can also set a fixed cash discount amount or a cash discount percentage rate.

5) Credit memos can be linked to the original invoice by entering the invoice number in the invoice reference field during document entry.

6) To activate the terms of payment in these non-invoice-related credit memos enter a V in the invoice reference field during document entry.

7) Terms of payment enable the system to calculate a cash discount and invoice due date.

8) Day limit is the calendar day to which the terms of payment are valid.

9) Using block keys in line items or accounts, you can block line items or accounts for payment or collection. These block keys can also be entered in the terms of payment. Similarly Payment methods can also be entered in the line items, accounts or in the terms of payment.

10) Base line date is the starting date the system uses to calculate the invoice due date.

11) You can enter up to three cash discount periods.12) An invoice can be paid over several months using an installment plan. 13) The system carries out the line item split automatically if installment payment

is defined the terms of payment by calculating amount due on different dates.14) The cash discount amount is entered either manually or automatically by the

system using the rates in the TOP. You can still change the cash discount after you post the invoice.

15) Cash discount Gross Procedure: When you clear an open item in a customer or vendor account, the cash discount is automatically posted to the account for Cash discount expense or Cash discount revenue. You need to define cash discount expense / cash discount revenue accounts in the IMG configuration.

16) Cash discount Net Procedure: The amount posted to the expense or balance sheet account is reduced by the cash discount amount. The same amount is also posted to a cash discount clearing account to clear the posting. (The cash discount clearing a/c should be managed on an open item basis.) If the amount is paid after the cash discount deadline, the cash discount loss is posted to a separate a/c.

17) Cash discount base amount is the net value or gross value including tax (depending on country regulation), is defined in the global parameters of a company code.

TAX

1) When posting invoices, SAP allows the consideration of the following taxes. Tax on sales and Purchases US sales tax Additional taxes. Withholding tax

2) There are two types of taxation that can be processed in the R/3 System. Federal/Country level State/Jurisdictional level

3) SAP system provides assistance with Calculating the amount of tax. Posting to specified G/L accounts Performing tax adjustments Tax reporting

4) System determines taxes from: A base amount which has discount included or excluded. A tax code to validate or calculate the tax amount.

5) System supports the treatment of taxes as follows. Checks tax amount entered or automatically calculates the

tax Posts the tax amount to tax accounts

Performs tax adjustments for cash discounts or other forms of deductions.

6) The expense or revenue amount is the base amount, which can include a cash discount (tax base is gross) or exclude a cash discount (tax base is net.). You define which amount is to be used for each company code or for the highest level of the jurisdiction code.

7) The tax code is used for the calculation procedure required to perform taxation functions within R/3.

8) A tax calculation procedure is assigned to every country for carrying out tax calculations.Tax calculation procedure contains:

Order of the steps that have to be performed for the tax calculation.

Tax types (Condition types) that apply for the country. Account key/transaction key that covers additional

specifications and is used for the automatic account determination for the taxes concerned.

9) Enter the TAX code when you post the document and this is the main connection to the tax calculation. Tax code is linked with

Country key or Combination of country key and tax jurisdiction code.

10) The tax codes within a jurisdictional taxation method are date-specific. 11) In the configuration, you can choose whether the document date or the posting

date is valid for the tax calculation.12) The tax code contains the tax rates. Tax rates are assigned to the tax types

used in the tax calculation procedure. A tax code may have several tax rates entered for different tax types, but usually only one tax rate is entered.

13) Some posting to tax relevant g/l accounts must have a tax of zero. This applies to:

Items that are tax exempt but have to be reported to the tax authorities. For these items a special tax code with tax rate of zero is created.

Items that are created by tax exempt transactions such as goods issue, goods movement, and so on. A special tax code must be assigned to these transactions in configuration.

14) Tax check indicator should not be set for input tax codes because the user must post the tax amount from the invoice regardless of whether it is correct or not.

15) Tax account determination To enable the tax account determination you have to assign:

Posting keys (40 and 50 recommended) Rules that determine which fields (tax code or account key) the

account determination is based on. Tax accounts.

16) When exchange rate differences occur because of tax adjustments in foreign currencies, these exchange rate differences are usually posted to the normal a/c for exchange rate difference.

17) You define tax accounts, to which tax items are posted, in the field Tax category by entering one of the following signs.

< For input tax.

> For output tax.18) Post automatically only must be selected if manual tax postings are not to be made.19) In company code segment of the all G/L accounts you may have one of the following entries in the field Tax category

(blank) For non tax-relevant postings_ For postings that require an input tax code.+ For postings that require an output tax code.* For postings that require any tax code.xx For postings with the predefined tax code xx

20) When the field posting without tax permitted is selected in G/L master record, you can post to this G/L account without specifying a tax code.

Cross-Company Code Transaction:

1) A Cross company code transaction involves two or more company codes in one business transaction. System creates and posts a separate document in each company code involved by posting to clearing accounts.

2) You can use RFBVOR00 to display cross-company transactions.3) The tax is not distributed between the company codes according to their

expenses.4) Clearing account must be defined in every company code before a cross-

company code transaction may be carried out. 5) The clearing accounts may be

G/L accounts Customer account or Vendor account.

6) In the configuration you must assign clearing accounts to every possible combination of two company codes to allow cross-company code postings between these combinations.

7) Posting keys must be assigned to the clearing accounts to identify their account types.

8) The cross company code document number is a combination of the document number of the first company code, the first company code number, and the fiscal year.

9) Cross company code transactions can be reversed. To do this you can use the reversal function for cross-company code transactions.

OPEN LINE ITEM CLEARING

CLEARING OPEN ITEMS

1) Open items are incomplete transactions, such as invoices that have not been paid. Completed transactions are cleared items.2) Open items can not be archived and stay in the system until all open items are cleared.3) A clearing transaction always creates a clearing document.4) Posting with clearing can be carried out for several accounts, account types, and for any currency simultaneously.

5) You can carry out the posting with clearing transaction manually or automatically using the automatic payment program.6) Clearing document usually contains no line items unless the line items cleared belong to different business area and/or account codes.7) The account clearing transaction may be performed manually or automatically using the clearing program.8) The automatic clearing program groups items from an account together where they have the same entries in the following fields:

Reconciliation account number Currency Special G/L indicator Five freely defined criteria from document header or line item, for

example assignment field, reference number and so on.9) The automatic clearing program does not clear:

Noted items Statistical postings and certain special G/L transactions

(Down payment and BOE) Items with withholding tax.

10) The assignment field of a line item is filled automatically during document entry based on the default sort indicator set in the master record. If sort indicator is not chosen while creating master record of G/L account the assignment field remains blank during document entry in that G/L account.

11) Assignment field can be a combination of up to 4 fields with a maximum of 18 characters.

12) Automatic clearing customization in IMG: Mention account type (D/K/S), Account code range From a/c and to A/c, 5 criterion fields in header/line item fields e.g. Assignment, Business area, Business partner etc..

13) You enter separate criteria for each account type. You can enter an account number interval to determine the accounts to which the criteria apply.

14) FBKP: transaction code for configuring Automatic postings and Special G/L.

INCOMING AND OUTGOING PAYMENTS

1) A manual payment is a transaction that clears an open item, typically an invoice, by manually assigning a clearing account.

2) An incoming payment, typically used in accounts payable, clears an open credit amount.

3) Document header Payment header, details entered/proposed by system are:: Document date, Posting date, Posting period Document type, currency code, exchange rate, Reference document number, document header text,

clearing text.4) Document header Bank date

GL a/c code, Amount, Bank charges (posted automatically to an expense a/c). With

incoming payments, the system adds the bank charges to the payment amount to form the clearing amount. With out going payments, it subtracts the bank charges from the payment amount to determine the clearing amount.

5) Document header - Open item Selection Account & Account type. Normal Open items/special G/L transactions. Payment advice note number Other accounts, additional selections.

6) There are several options for activating or deactivating open line items to clear they are:

Editing option. Double click on the amount. Selection from action menus and function keys.

7) Posting the payment:: Document simulate, enables you to see all of the items in a document including automatically created before posting the document.

8) Users can reset clearing for individual documents. When you reset clearing, the clearing data is removed from the items.

PAYMENT DEFFERENCES

1) There are three types of tolerance rules that define acceptable payment differences during posting, they are:

1. Tolerance group for employees Upper limits for posting procedures Permitted payment differences

2. G/L account tolerance group Permitted payment differences

3. Tolerance group for Customers/Vendors Specifications for clearing procedures Permitted payment differences Specifications for posting residual items from payment

differences. Tolerance for payment advises

2) The tolerance group is defined by a Group key, Company Code, and currency code.3) The group key is a 4 digit alphanumeric key.4) The Key __ (Blank) is the standard tolerance group and is required as the minimum tolerance group.5) If no tolerances are assigned to Employee, Customer/Vendor masters, G/L codes, the default tolerance group ___ (Blank) applies.6) The entries in the tolerance groups are always in local currency.7) Payment differences within Tolerances automatically posted as either cash

discount (If terms of payment permits) adjustment or unauthorized deduction.8) Payment differences outside tolerances processed manually.9) If the payment difference is immaterial, it may be processed automatically by

allowing the system to adjust the cash discount up to a certain amounts or to write off to a special account.

10) If the payment difference is too high to be immaterial, it must be processed manually: The payment may be posted as:

Partial Payment Residual payment Can be posted to an account assigned to a reason code or written of

by manually entering a new posting item.

Can be posted as payment on account.11) The customer/vendor tolerance groups contain entries that control the residual items. They specify:

Whether the Terms of payment (TOP) of a residual item are the same as those of the cleared item or whether the TOP are fixed.

Whether the cash discount is granted only partially and not for the whole amount.

By specifying a dunning key, whether the residual item has a maximum dunning level or is permitted separately.

12) Reason codes are used to describe the reason for the payment difference. To assign more than one reason code to a payment difference, click on distribute difference.

13) Reason codes can be assigned to: Difference postings Partial payments Residual item.

EXCHANGE RATE DIFFERENCES

AUTOMATIC PAYMENT

PAYMENT PROCESS OVER VIEW

1) Over View of Payment process; Invoices are entered Open invoices are analyzed for due date Invoices due for payment are prepared for review Payments are approved and/or modified Invoices are paid.

2) SAP R/3 allows you to automatically Select open invoices to be paid or collected Post payment documents Print payment media, use data medium exchange (DME), or generate

electronic data interchange (EDI)3) Automatic payment handles both incoming and out going payments for customers and vendors.4) Payment Process consists of four steps:

Parameters: What is to be paid, Payment method..? When will be the payment made..? Company codes?

Proposals It generates a list of business partners and open invoices that are due for payment.

Payments A Payment document is created and G/L and sub ledger accounts are updated.

Print. To generate payment media.

PAYMENT PROGRAM CONFIGURATION (FBZP)

1) Most of the settings for the payment program can be accessed directly through the user side of the application.2) The settings are divided into the following categories:

All Company Codes Paying Company Codes Require minimum

configurationchanges. Payment Method/Country Payment Method/Company Code Bank Selection: House banks

3) All Company Codes: Sending Company code Paying Company code Separate payment per business area..? Tolerance days for payable Special G/L transactions to be paid and for exception list.

(For vendors and Customers) Payment method supplement (Allows printing and sorting

payments.)Paying Company Codes:

Minimum amount for incoming and out going payments Forms for Payment advice and EDI. BOE specifications.

Payment method/Country Payment method Payment method classifications like Create a cheque, Bank

transfer, BOE etc. Required master record specifications.(e.g. Address, postal

code, bank details etc) Document types for payment and clearing. Name of the print program Permitted currencies (If there is no entry, the payment

method is valid for all currencies)Payment method/Company code

Eligible payment methods for company code, And define for each payment method

Minimum and maximum amounts to be processed Whether payments abroad and foreign currencies are allowed Grouping options (Payment per due date/Single payment for

marked items..) Bank optimization (By postal code/bank group) Forms for payment

Bank selection: Bank rankings for each payment method Amounts available for payment against each bank (Amount

field id not updated after each payment run) G/L accounts to which bank entries to be posted. Value date Clearing account for BOEs for creating liability.

RUNNING THE PAYMENT PROGRAME INDIVIDUAL STEPS

1) Following are the main steps for running the payment programme:a) Maintain parametersb) Start proposal runc) Edit the proposald) Start payment rune) Schedule printing.

2) Two fields identify every payment program run, they are: Run date Identification

2) I) Parameters Posting date Documents entered yup to (For payment) Company code Payment method (Cheque, Direct debit, Bank transfer) Next payment date Customer and Vendor account intervals

ii) Proposal Run Proposal List Exception list

iii) Editing the Payment proposalIV) Payment RunV) Printing Payment advices/Cheques.

DUNNING

1) Dunning configuration divided into 6 categoriesA) Dunning Procedure

Dunning intervals in days No of dunning levels Minimum days in arrears Line item grace periods Interest indicator

B) Dunning Levels Days in arrears for each level Calculate interest in which levels? Always dun..? which level Print all items in which level Payment deadline

C) Dunning charges Dunning charges can be in percentage or fixed amount Dunning charges from dunning amount? On which level

D) Minimum amountE) Dunning textF) Environment

CONTROLLING

CONTROLLING AREA.

Required fields : Controlling Area code.NameCurrency type(Company code Currency, CA currency, group, hardCurrencyChart of a/csFiscal year variant,Cost center standard hierarchy

COST CENTRE CREATION (30100 fi/co consulting 30200 Junior Consulting0

Required fields : Name,Person Responsible,Cost Centre category, (Admn/Sales/Service)Hierarchy area,Company code, Business area.

SECONDARY COST ELEMENT CREATION (Junior consultant/Senior )

Required fields : Name,Cost element category (42 Asessment/43 internal activity)

ACTIVITY TYPE CREATION (E.g. S00 Senior consultant J00- junior consultant)

Required fields : Name,Activity unit (Hour/Liter/Kg)Cost centre category (For which it is applicable)Activity type category ( Manual entry manual

allocation/Indirect..)Allocation cost element,

STATISTICAL KEY FIGURES CREATION (TELE00)

Required fields : Name,Unit of measurement.& radio button for (key figure category Fixed/Totals value)

INTERNAL ORDER

Required fields : Order type.Short text

PROFIT CENTRE

Required fields : NAME,PERSON RESPONSIBLE,PROFIT CENTRE GROUP/hierarchy.AUTOMATIC PAYMENT PROGRAM

Configuration step of automatic payment program: -1. All company code: -

(A) Inter company payment relationships(B) Company code that process the payment(C) Cash discount amount or percentage(D) Tolerances days for payments(E) The customer and vendor transactions to be processed.

2. Paying company code: -(A) Minimum amount for incoming and outgoing payments.(B) Bills of exchange specification(C) Forms for payment advice and EDI (payment advice format)

3. Payment methods /country: -(A) Payment methods e.g. check, back transfer, bills of exchange etc.(B) Master record requirements e.g. address etc.(C) Document type for posting(D) Currencies. If not set valid for all currencies

4. Payment method company code: -(A) Minimum and maximum payment amounts(B) Foreign payment and foreign currencies allowed(C) Bank optimization(D) Postal code optimization

5. Bank Selection: -(A) Ranking If define the order of the various bank for payments.(B) Amount If define the available amount in bank accounts for payment.(C) Account (D) Expenses / Charges: - If any charges or amount short received the

system post the amount in clearing account in case of outgoing payment and subtracts from incoming payment in case of payment received.

(E) Value date: - This is used for cash management. If specify in how many days payment will actually deducted from account.

6. House Bank

RUNNING PAYMENT PROGRAM

7. Maintain parameters: -(A) Run Date(B) Identification(C) Open item selection: - It defines that document entered up to this date

include in payment run.(D) Posting date: - this is the date on which general ledger is updated. This

is the default date from run date.

(E) Company code selection (may be one company code or multiple company code). In case of multiple company code, comma should be used between two company codes.

(F) If is necessary that all the company code in a payment run must be in same country.

8. Proposal run: - On the basis of parameters system run the proposal. If it found any incorrect payment methods, bank data or payment block it adds these item exception list.

9. On completion of proposal run system create two reports e.g. payment proposal list and exception list.

10. Payment block may configure in following ways: -(A) While invoice verification process(B) In master record(C) During entering of Account Payable invoice

11. Editing payment proposal: - While editing the payment proposal a user can change the payment term, block the payment or remove the block.

12. Start payment run: - On this stage system locked all the selected item in payment proposal for further posting, update the general ledger and sub-ledger and cleared the open item.

13. In some countries books are updated when payment actually credited from bank. In this case systems generate payment order only. Books are updated automatically while transaction with bank. Till then the paid item are blocked for other clearing transaction.

14. Schedule print: - A print program is assigned to each payment method for each country. To run the print program a variant must be assigned to it. The payment medium forms can be for each company code or each payment methods.

15. Debit balance check carried out after creation of payment proposal.16. If debit balance still appears even adjusted with payment system add that

transaction in exception list.17. The relevant accounts remain block even payment proposal deleted.18. Block can be released manually.

DUNNING

Process of configuration of dunning program: -

1. Dunning procedure: -(A) Define dunning interval reminder may be weekly, fortnightly, monthly

etc.(B) Define no. of days is arrears after which dunning notice will be sent(C) Grace period per line item(D) Interest calculation indicator for calculation of dunning interest.(E) Dunning key for dunning procedure.

2. Dunning levels: -(A) The first dunning level included the line item grace period.(B) If option always dun selected, the dunning notice will still printed even

not change have been made in account.

(C) In dunning notice total account balance or item wise detail can be print,

3. Expenses/ changes: -(A) Dunning charges may be depending on dunning level.(B) Dunning changes is either fixed for percentage of amount dunned(C) You can either choose fixed or percentage for dunning charges(D) Dunning charges are define for currency wise

4. Minimum amount or percentage must be specifying for dunning notice. The dunning notice will not generate until overdue item reached up to dunning level.

5. Minimum amount can also be fixed for calculating interest on dunning amount.6. Dunning text must be defined according to the dunning level.7. Predefined form of dunning text is available in SAP8. Dunning program can generate payment advice note, dunning notice and

payment form.9. Environment: -

(A) Company code data(B) Short field(C) Sender detail(D) Dunning areas(E) Dunning key(F) Dunning block reason(G) Interest(H) Dunning grouping

Running of dunning program: -

1. Enter parameters: -(A) Run date(B) Identification(C) Selection of company codes. May be single company or no. of

companies(D) Range of customer/ vendor accounts(E) Document - define up to which posting date include in dunning run.

2. Dunning run: -(A) First system select the account which shell be include in dunning run on

the bases of parameters(B) In second step system check which line is overdue and which dunning

level should be applied.(C) Dunning procedure must be entered in master data of

customer/vendors(D) If a credit memo is invoice related, its due date is same as invoice due

date(E) For non- invoice related credit memos due date is base line date.(F) In case of customer vendor clearing, the credit amount of vendor

account will cleared with highest level of dunning item.(G) Every dunned item must be overdue but not all overdue items are

dunned.(H) If an incoming payment method is defined in item, the item is not

dunned because the payment program is responsible for payment collection. These item can only be done while putting payment block.

(I) The dunning procedure has maximum nine level of dunning excluded of legal notice.

(J) Dunning procedure with only one dunning level are referred as payment reminders.

(K) By assigning dunning key to certain item, can prevent this item exceeding certain dunning level.

3. An account is only dunned if data has been changed since last dunning or option always dun selected.

4. Editing dunning proposal: -(A) For editing purpose printout can be taken for dunning list, blocked

accounts, blocked line item, dunning history and dunning statistics.(B) If dunning proposal not used it must be deleted. Otherwise it blocked

all selected item for other dunning run.(C) While editing proposal account can be blocked, unblocked, dunning

level can be reduce dunning data can be changed in master data.(D) The changes in master record from proposal editing will not apply to

current run.5. Printing dunning notices: -

(A) Item that is grouped together in dunning notice if company code, dunning area and account are same.

(B) One time customer can be dunned together if they have same address.(C) Overdue of on customer in different company code can be dunned in

one dunning notice.

CORRESPONDENCE1. Payment notice, account statement, individual correspondence, open item

list are the example of correspondence.2. Correspondence type can be linked with reason code.3. If you want to issue the same correspondence, entered the correspondence

type in the message-required field.4. If you want to issue different type of correspondence depending on reason

code, you must select ACCORDING TO REASON CODE.5. Payment notices are created according to the reason code carrying same

correspondence type. If reason codes occur with different correspondence type, then payment notice define for tolerance group is sent.

INTEREST CALCULATION

1. Type of interest calculation: -(A) Account balance interest calculation(B) Interest on arrears

2. Interest calculation configuration:-(A) Interest calculation indicators(B) General term(C) Time based terms(D) Interest rates(E) Account determination

3. Different way to calculate the interest: -

(A) Calculate interest on cleared item only and post interest(B) Calculate interest on open and cleared item only and post interest(C) Calculate interest on open and cleared item and dont post

4. Account those are having interest calculation in their master record and are managed in open item can included in interest calculation list

FINANCIAL STATEMENT VERSION

1. As many as financial statement version can be defined for different use.2. Financial statement version is Chart of Account dependent.3. Each financial version must have assets, liabilities, profit, loss, profit and loss

result and account not assigned.4. Financial statement version consists of maximum 10 hierarchy levels.

BALANCE CONFIRMATION

1. You must supply at least one address to which balance confirmation should be sent.

2. The balance confirmation program automatically creates balance confirmation including reply slip.

FOREIGN CURRENCY VALUTION

3. The foreign currency valuation must be carried out before creating financial statement.

4. The foreign currency valuation must be carried for: -(A) All GL account that run in foreign currency(B) All open item that posted in foreign currency

5. Customization for foreign currency valuation: -(A) Currency customization e.g. defines exchange rates.(B) Define expense and revenue account for exchange rate difference.

6. Since foreign currency valuation is carried out for GL accounts therefore you cannot post the valuation in payable account directly because payable accounts are reconciliation account. For this reason, valuation difference post to an adjustment account, which appears in same line of balance sheet as the reconciliation account.

7. In valuation method OPEN ITEM WITHOUT UPDATE system update the valuation in document line item. A posting is made in the period in which valuation is performed to adjust the overall receivable balances. This posting is reversed in next period to bring the receivable balance back.

8. In valuation method OPEN ITEM WITH UPDATE system update the valuation in document line item. The system uses this valuation during payment clearing or for subsequent valuation.

9. For each valuation method you must define parameters for valuation procedure and exchange rate determination.

10. The Balance Valuation procedure means: strictest or lowest valuation principle:

11. If the valuation is carried out for an account, which managed in open item management, you must define the exchange rate gain and loss account for each reconciliation account in sub ledger accounts.

12. Foreign currencies are valuated by balance.13. Value adjustment is made if receivable is determined to be un-collectible.14. Regrouping is only for closing purpose. Regrouping are done though a special

program. On first day of next period these grouping are removed.15. Balance of an account determined whether the system displays it as receivable

or payable.16. Reconciliation account can be change in vendor/customer master record during

fiscal year. The changes will effective from the date of change of reconciliation account.

PROIT & LOSS ACCOUNT

1. Profit & Loss account can be created either by period account or by cost of sales accounting.

2. Payroll results are posted to accounting via FI/CO interface.3. While posting of accrual/deferral you must entered a reason code. The reason

is noted in the document that is reversed.4. The reason code defines whether the reversal document has different posting

date and can be comprised negative posting.5. Accrual means revenue/expenses belong to current period and are posted in

subsequent period once invoice has been issued or received.6. Deferral means revenue/expenses are belonging to future period but posted in

current period.7. Three application components of accrual engine: -

(A) Manual accruals(B) HR - provision for awards(C) SD leasing

8. Accrual engine record two type of data: -(A) Basic data: - The basic data consists of descriptions of the subject to be

accrued. The basic data is time dependent.(B) Accrual engine documents and total records.

9. Advantage of accrual engine: -(A) Accrual calculation automatically(B) Periodic accrual postings are made automatically.(C) Can plan future accruals(D) Perform parallel reporting(E) Extensive information system

10. Closing activities and accrual engine: -(A) Reconciliation: - accrual engine and general ledger are reconciled with

each other to check whether the transfer to the general ledger was complete and without error.

(B) Balance carry forward: - the object of accrual engine can be carry forward to the next fiscal year.

11. Posting control defines for: - each company code, each accounting principle and each accrual type.

SCHEDULE MANAGER1. STEP OF SCHEDULE MANAGER: -

(A) Task list(B) Schedule(C) Monitor(D) Flow definition(E) Work list(F) Work list monitor

2. Advantage to Schedule Manager: -(A) All jobs for period end closing located centrally(B) Access available with authorization only(C) Changes are immediately available and effective

TASK LIST AND MONITOR

3. Task list is a central store in R/3 where all task available with authorization4. New task can be created in task list5. Step in creating new task: -

(A) Collect existing process and flow definition(B) Decide the people and their responsibility(C) Specify the job with organization unit(D) Review and transfer the process flow and structure into R/3

6. Task list can be create for all with authorization7. All the other function of schedule manager depend on task list8. Task list can be created in any structure9. Type of task list: -

(A) Documentary Character example Notes(B) Manual task in system example Transaction(C) Background jobs example program with variant(D) Collection of jobs example flow definitions

10. Task mentioned as Manual cant stat automatically e.g. period lock, external data transfer etc.

11. For every task responsibility can be fixed to an individual to create transparency.12. NOTE cant be schedule13. Program with variant can either run immediately or schedule for future time14. Schedule manager DO NOT give any information regarding completion of job

MONITOR15 Through monitor, jobs process can be view along with technical and

business status of every task.16 Message and results list are available on line. They disappear as soon as you

leave the screen.17 Job source are available e.g. job jog, spool list etc.18 The DETAIL BUTTON in monitor contains the detail summery (runtime, user,

entered parameters and application specific data such as organizational units, periods or fiscal year) about job including messages.

DEFINATION FLOW19. If several jobs execute in sequence, need to monitor sequence manually.20. For jobs post simultaneously, there is no guarantee that the posting is

finished when the actual background job are complete.

21. To monitor the sequence manually, you must remain in system and introduce new task when a job finished.

22. Flow definition is enable you to define a fixed sequence of job that are in SAP Flow definition enable you send E-mail to responsible person to make communication quicker and easier.

23. The complete flow definition STOP until the mail recipient confirms the mail as PROCESSED, on confirmation of mail, the flow continued to next step.

24. Flow definition will continued even server shut down, for precaution, the updated data must be analysis.

25. Flow definition can create directly from task list 26. Cost center accounting application cant use in flow definition.27. Flow definition must be activated.28. Advantage of flow definition: -

(A) Information via E-mail(B) Sequence ensured(C) User error free processing(D) Optimum hardware usages.(E) Optimum atomizationDISADVANTAGE OF FLOW DEFINATION: -

(A) Hardware can be overloaded during parallel processing.(B) Not possible to stop quickly(C) Clarity suffers

WORK LIST/ WORK LIST MONITOR

Scenario without worklist : -29. If we run sequential job, system access the database every time whenever

start new job.30. A job sequence contain FOUR to TEN step31. Only after the job run, you can know if any error occurs during job run.

After rectification you must run jobs again.Scenario with worklist : -

32. System selected the required data for all job on processing of first job. 33. System assigned a mark e.g. incorrect/not relevant/without error etc.

sequence and process next job according to the mark.34. The incorrect object collected by system can process at any time.35. For object containing error, need not to define new selection.36. To correct the faulty object. The responsible person received the SAP Mail

for correcting and after correction job can be start from mail.37. Advantage of work list: -

(A) Can see the flow definition(B) Improved performance(C) Error analysis easy.

38. Work list are extended flow definition,39. Work list are also application specific. You cant run ASSESMENT,

DISTRIBUTION, and PERIODIC REPOSTING AND INDIRECT ACTIVITY ALLOCATION.

40. While double clicking on a job, systems give the information about the currant run.

41. Only information for the last run is available.42. If for a job more then one person is responsible. System sends mail to all

the person. But if any one of them opens the mail, the mail will disappear from others login.

43. Flow definition can itself contain flow definitions (nesting).

SOLUTION MANAGER

1. Solution manager contain relevant aspect on implementation, operation and continuous improvement.

2. User can log into the solution manager according to their following role with authorization: -

(A) Project Manager(B) Application Consultant(C) Development consultant(D) Technical consultant(E) System administrator(F) Support Engineers.

3. Solution manger is a central platform, which contain the documentation and representation for ENTIRE sap solution.

4. Solution manager is a single point access for design, configuration and testing.5. SAP solution manager enables process oriented design, configuration, testing

and on going system monitoring during operation, regardless of the complexity of the system landscape.

6. SAP solution manager enables process oriented v/s components oriented configuration and testing.

7. It contain the pre define business processed; customer can select these process as per their requirement.

8. BUSINESS PROCESS REPROSITORY (BPR) contain reusable predefine process in following scenario: -

(A) Scenario documentation(B) Transaction assignment(C) IMG assignment(D) Configuration guide(E) Preconfigured process delivered via BC sets.(F) Predefine test cases.

9. Phases of implementation: -(A) Project definition define projects and system landscape (B) Business blueprint - identify customer specific solution based on pre

define scenarios in the business process repository and customer define business process.

(C) Realization configure, compare and distribute customizing setup test system organized test and perform.

(D) Final preparation(E) Go live and support

10. Cross function of solution manager: -

(A) REPORTING: - Can obtain information about status of project any time that in blueprint, configuration or testing.

(B) ROADMAP: - To lead the implementation team step by step with Methodology and Supporting.

11. The Road map allow: -(A) Navigate the structure(B) Filter the structure item by ROLE or Subject area(C) Display and assigned document(D) Print individual document or structure(E) Search for specific item(F) Track status and create note(G) Create message.

12. After making initial configuration at realization phase system ready for testing.13. Knowledge where house is a central store for all project documentation.14. Solution manager service infrastructure provide: -

(A) Self service(B) On site service(C) Search for information or services(D) Remote service

15. The sap support process contain following steps:-(A) SAP notes search(B) SAP notes assistance(C) Workflow and E-mail notification(D) Microsoft net meeting for application sharing(E) Interface to SAP service marketplace to send support notification to SAP

active global support.16. SAP software components can be monitored via RFCs or external agents at OS

level, non-SAP software components can be monitor via agents.

ORGANISATIONAL UNITS (CCA)1. Organizational units are operation concern, controlling area, company code and

plants.2. Cost cant allocate outside the controlling area.3. A controlling area may contain more then one-company code.4. Companies under one controlling may include more then one currency.5. All the company code assigned to one controlling area must use same chart of

account.6. Control indicator can be used to activate or deactivate certain controlling components

that is valid for a fiscal year.7. Components of customization of controlling area: -

(A) Define controlling area(B) Name of controlling area(C) Assignment of company codes(D) Currency type and currency(E) Chart of account(F) Fiscal year variant(G) Cost center standard hierarchy(H) Reconciliation ledger activation

8. To an operating concern, more than one controlling can be assigned.9. To a controlling area more then one-company code can be assigned.10. To a company code more than one plant or not plant can be assigned.11. Assignment can be change provided no master or transaction data is created.12. In case of 1:1 assignment: -

(A) Controlling area currency must be same as company code currency.(B) An object currency may be different to controlling area to company code(C) Transaction currency is the currency in which document is posted to CO.(D) Chart of account must be same.(E) The posting period must be same but special posting period may be diff.

13. In case of 1:n assignment: -(A) By assigning multiple company code to one controlling area, cross company

transaction is possible.(B) Controlling area currency and company code currency may be different. But

currency of controlling area must have one of the company code currency.(C) The object can be different if the currency of all company code and controlling

area is same. If the currency of all company code and controlling is different, the company code currency automatically become the object currency.

(D) Transaction currency is the currency in which transaction is posted.(E) The operational chart of account must be same but the country chart may be

different.(F) The fiscal year variants may be different. Also special period may be different

but the no. Of posting period must be same14. 1:n assignments required: -

(A) If cross company code reporting required.(B) If logistic make it necessary(C) Where result will spread all over more then one company code(D) If profit center cover more then one company code

15. Controlling area currency is 20, group currency is 30 and profit center currency is 90.MASTER DATA COST CENTER

1. Before creating a cost center, standard hierarchy must be defined.2. The name of the standard hierarchy is defined at he time of creating controlling area.3. All cost center must be assigned to standard hierarchy.4. The structure of standard hierarchy is depending on the organization requirement.5. Each node or level of standard hierarchy is a cost center group.6. Cost center can be change or create cost center either from user menu or from

standard hierarchy maintenance function.7. Cost center that are created or change in standard hierarchy have inactive status. In

this status it cant handle a controlling assignment object.8. The cost center must be activated either individually or in collective process.9. From the standard hierarchy maintenance function, the cost center can be assigned to

another area in standard hierarchy. The cost center master data need not to be maintaining again.

10. In a fiscal year, the assignment of organizational unit can be change if: -(A) The currency of the old and new company code must be same.(B) Only planning data is posted(C) Cost center should be assigned to HR, fixed assets or work center.

11. Cost center is a cost assignment object, which incurred and influences the cost.12. Cost center category is an indicator in cost center master data.13. The example of cost center category is production, administration, sale etc.

14. Cost center category allows you to post same nature of cost in a similar cost center.15. In customization lock indicator can be assigned to each cost center category.

COST ELEMENT

16. The chart of account contain the general ledger account belong to financial accounting.

17. Entries in FI passed real time to cost and revenue element accounting.18. Secondary cost element is only created in CO.19. Secondary cost elements are used to record internal value flow like activity allocation,

assessments and settlements.20. Primary cost elements cant be created before creation of relevant GL in FI.21. A cost-carrying object e.g. cost center etc. required to carry primary cost element

from FI to identify the origin of the cost.22. Secondary cost element doesnt have corresponding entries in FI.23. Revenue element is always primary cost elements.24. Cost element category 01 for all posting form FI and MM.25. When processing chart of account in FI, you can specify default settings so that cost

element can be generate automatically in CO when GL is created in FI.26. The description of cost element is as in GL. You can change the description of cost

element.27. The secondary cost element is generated for all cost elements. The description of

secondary cost element is taken from cost element category.

ACTIVITY TYPE28. Activity type specifies, specific activity provided by one or more cost centers within an

company.29. Activity type defined at company code level.30. Activity type serves as tracing factors for cost allocation.31. When activities are allocated both quantities and cost are allocated.32. In order to restrict the use of activity type only by certain type of cost center, cost

center category is entered in activity type master data record.33. Maximum 8 cost center category can be entered or can make it unrestricted by

entering * .34. Secondary cost element is stored in activity type master data as default value.35. Activity type category is used to determine whether and how activity type is to be

allocated e.g. direct, indirect or not allocated.36. To enable internal activity allocation you need to specify which cost center provides

which activity at what cost.37. For direct activity allocation plan price for combination cost center/activity type is

used for this calculation.38. You can enter plan price either manually or have it calculated by system

automatically.39. If you set the price manually, you need to set price indicator to 3.40. For direct activity allocation the quantity of activity to be set manually.

STATISTICAN KEY FIGURES (SKF)

41. SKF are figures relating to profit center, cost center and overhead cost orders.42. Both plan and actual SKF.43. SKF are bases for periodic transaction such as assessment and distribution.44. SKF figure are define as fixed value or total values.45. Total value is posted only in that particular period.

46 If any field of cost center, cost element and activity type changed a new master record is created by the system automatically.

47 Due to time dependency of master datas several master record are maintained for each individual master record.

48 Master data fields are made time dependence in customization.49 Assignment of a cost center to a company does, a business area or to a profit center

and defined by SAP as time-dependent. This cant be reduced if posting made to cost center.

50 Cost center assignment to the standard hierarchy area is non-time dependent field.51 Through master data maintenance the validity period of master record can be extend

while creating new master record for extended period.52 SKF can be change or delete through collective process.53 Cost center and activity type can only be display or delete by collective processing.54 Grouping of master data can be done for reporting, analysis, and planning and

allocation purpose.55 Master data group function enables you to create hierarchical structure.56 As many as hierarchical group can be created as per the requirement.57 Alternative cost center hierarchy can be created by using grouping function.58 Selection variant is used for master data selection.59 When you create or change groups you cant create any new selection variants.60 System performance is better for groups if they dont have the selection variants.61 Master data are not time-based.62 Standard hierarchy of groups can be copied adding suffix (name or date up to four

characters) to each group. The hierarchy and groups can now be saved.

63 The standard hierarchy must not contain a suffix.64 If you copy a group which has already a suffix, then this suffix is replaced by another

suffix.

EVENT BASED POSTINGS

1. Primary cost element is posted to an incorrect cost object, can be reposted to correct object.

2. Cost can be reposted using original primary cost element.3. Difference between reposting and allocation: -

(A) In reposting debit side of sender is reduced and new line created on debit side of receiver.

(B) In allocation debit side remain unchanged but separate credit entry is made on sender a/c.

4. A direct activity allocation involves entering quantities that a cost center provides for another account assignment object using secondary cost element?

5. CO process both actual posting and commitments.6. Commitments are though not entered in FI, will result in actual cost through

business transaction that follows.7. Any activity which changed an object is called business transaction.8. A number range must be defined for all business transaction that generates CO

documents.9. Document number range can be copied from one controlling area to another.

10. Number interval can be assigned in two steps: -(A) Group more than one business transaction. If separate number range is to

be assigned to a business transaction then create group for each transaction?

(B) Number range can be assigned to group either internally or externally.11. Number range defined for CO document is independent of fiscal year.12. The document number range can be assigned in ascending order.13. FI posting in CO triggers subsequence real and statistical posting.14. Only real posting can be process/allocate or settled with other CO object.15. Only real posting and only one can be made to CO.16. In profit center always statistical posting are made.17. Account assignment object (cost center/internal orders/profit center) are

determine whether a posting is real or statistical.18. In a real cost both real and statistical posting can be made.19. Profit center is store in master data of cost center.20. If in a transaction row, then in a real account assignment object with real cost

center, then real posting would be made in that other real assignment object and statistical entry to cost center?

21. One real object type can be assigned to each posting row.22. Revenue can only be posted as real posting to profitability segment, sales order,

and sales project or to a real order that can have revenue.23. Revenue posting to profit center is statistical.24. Revenue can be recorded as statistical posting on a cost center.25. Line item and total record are recorded in a separate database table.26. Transaction entered in line item automatically updated in total record file.27. Total record can be analyzing total record using report painter/report writer.

28. Variation function enables you to select a separate report for each element of a groups that was generated during a selection run.

29. Variation function can only be used if you have activated in report definition.30. Report can be saved for cost center group as extract with activated variation.

DEFAULT ASSIGNMENT AND AUTOMATIC ACCOUNT ASSSIGNMENT

31. Automatic account assignment or default account assignment can be defined for primary cot element.

32. Default assignment can be defined for cost center, overheard order and profit center to cost elements.

33. Default assignment can always be overwritten.34. Default assignment is done in cost element master data.35. Account assignment entered at controlling area level and at account level.36. Automatic account assignment is done in customization.37. In automatic account assignment, assignment to business area and profit center

can also be done.38. System derived information first from automatic and then in default (master data).39. Automatic (IMG) account assignment takes priority over default assignment (master

data).40. Accuracy of CO data can be increased by Validation and substitution.41. In validation and substitution system checks if data entered meets one or more

conditions.42. Checks are carried out during data entry.43. Validation and substitution checks are created for a controlling area and for a

particular event.44. Validation carried out validity checks on objects such as cost element or cost

center.45. If condition not match in validation, system display following messages: -

(A) Information message user can ignore it.(B) Warning message user must correct it(C) Error message system cant proceed further.(D) Cancellation - system stops and come out from entry screen.

46. In validation system displays the predefined messages and user has to correct the entries but in case of substitution system automatically correct the entries and dost informs the user.

47. Validation checks can be carried out while making substitution.48. Validation has priority over substitution.49. To correct the posting error, reposting of cost and revenue can be done manually.50. Negative cost may appear on sender side due to no sender check e.g. system

does not check whether cost really exist on sender side. Or not.51. The function of reposting line item enables you to report specific line item from

CO document. This function is design to correct primary posting that you has assigned wrong object.

52. To report lien items of CO documents, it should contain reference to original FI documents.

53. Reposted line item contains reference to the original FI documents.54. System can be used to make event passed pasting automatically.

55. Commitments are payment obligation that is not entered into account. They are incurred in purchasing function in MM components.

56. Commitment management need to be activated in controlling is in CO.57. Additionally cost center may not be locked for commitments.

DIRECT ACTIVITY ALLOCATION

58. An activity type must be created for direct activity allocation. (activity type category type 1 = manual entry manual allocation).

59. Only one cost center from sender can be allocated to controlling object such as cost center, an order, a project and so on.

60. Secondary cost element for direct activity allocation is category 43.61. Direct activity allocation is recorded by line item as sender side and receiver side.62. Cost element used for activity allocation is delivered from activity type master

data.63. This cost element cant be changed in allocation transaction.64. Direct activity allocation can be reposted to correct on error.65. In reposting of internal activity it should be ensured that total quantity of

allocated quantity remains same.66. You can repost in period which is not the same period to which document to be

adjusted belong.67. Reposting create a reference in reposting document to CO source document.

PERIOD END CLOSING

ACCRUAL CALCULATION: -

1. Non-operating expenses are not recorded in CO as cost.2. Accrued cost does not have corresponding entries in FI. They are only accrued for

cost accounting purpose.3. Accrual is made by two reasons: - (A) Valuation difference (B) Additional cost.4. Accrual cost can be entered by:-

(A) Percentage method It is based on actual cost.(B) Plan=Target method - It is activity dependent and activity independent.(C) Target=actual method Activity independent

5. Cost element category 3 is used for accrual calculation.6. An overheads structure is required for accrual calculation: -

(A) Base Which cost element base are to be used for applying overhead rates.(B) Overhead The rate or percentage of overhead.(C) Credit The cost element is to be used for posting overhead.

7. Overhead structure is assigned to controlling area.8. Dependency can be assign on overhead key.9. Cost element category 4 is used for target=actual method.STATISTICAL KEY FIGURES (SKF): -

10. SKF is used as tracing factor for periodic allocation like assessment and distribution.

11. In the master data of SKF define: -

(A) Fixed value category type 01 start updating form corresponding posting period onward.

(B) Total value category type 02 entered only current period. Change period to period.

12. SKF can also entered for an activity type on a cost center ( SKF that are activity dependent).

PERIODIC REPOSTING: -

13. Periodic reposting is used as posting aid.14. Primary posting are collected on an allocation object e.g. cost center, overhead

cost order, business process, wbs element or cost object to restrict no of FI posting as much as possible.

15. The cost is allocated during period end closing to corresponding controlling object using a key define by user.

16. Receiver of periodic reposting can be cost center, wbs element, internal order, cost objects.

17. Number of receiver can be restricted in customization.18. Only primary cost element can be reposted. During reporting original cost element

remain same.19. Line item is posted for sender as well as receiver.20. Total record is not saved during periodic reposting at clearing cost center.21. Periodic reposting can be reversed and reposted as often as required.

DISTRIBUTION: -22. Distribution is also used to transfer primary cost.23. In distribution sender is only cost center or business process.24. Receiver can be cost center, WBS element, internal order, cost object or a

business process.25. Primary cost is distributed by means of user defined key.26. Original cost element remains same.27. Line item is posted for sender as well as receiver side.28. Distribution can be reversed as often as required.29. In distribution system writes total record for credit.30. During periodic reposting system performance is better then distribution.

ASSESMENT: -31. In assessment primary and secondary cost transfer.32. During assessment cost center and business process can be used as sender.33. Receiver can be cot center, WBS element, internal order, cost object and business

process.34. No. of receiver can be restricted in customization35. Line item is posted on sender as well as receiver side.36. Cost element identity is lost at receiver as well sender side.37. More than one assessment cost element can be used for differentiation purpose.38. For assessment cost element category 42 is used.

CYCLE SEGMENT METHOD: -39. Cycle segment is used for periodic reposting, assessment and distribution.

40. In a segment, cost center will allocation value based on the same rules are combined will receiver object that have tracing factor based on same rules.

41. Several segments are grouped into a cycle.42. A cycle can be defined for entire controlling area.43. Separate cycle can be created for plan and actual allocation.44. Sender rule for cycle segment are: -

(A) Posted amount(B) Fixed amount(C) Fixed price

45. Receiver rule for cycle segment are: -(A) Posted amount(B) Fixed amount(C) Fixed price(D) Variable portion.

46. A dependent cycle use result from previous cycle.47. An independent cycle can be processed in parallel if they have same allocation

type.48. Cycle can run parallel to each other only if they belong to different cycle flow

group.49. Once processing is completed, you can check for error using the processing log.50. Iteration indicator can be activated or deactivated in cycle header.51. Cycle cant iterate with each other.52. Segment can iterate with each other provided segments are from same cycle.53. Cycle header contain: -

(A) Formal check: - can use to test individual cycle prior to cycle run.(B) Object search: - using this function a search can be start for cycle object.(C) Overview of segments: - list critical segment data, add copy delete segments

etc.54. Segment can be short or add in cycle in line with your requirement.ASSESMENT ALLOCATION STRUCTURE: -

55. Allocation structure is combination of assessments.56. Allocation structure is then assigned to segments.57. In allocation structure you can assign single cost element, cost element areas or

cost element group to an assessment cost element.58. In allocation structure you define which cost element are to be allocated under

which assessment cost element.59. You specify whether cycle can be carried out cumulatively on the header of cycle

processing.60. Cumulative processing is only possible for distribution, assessment and periodic

reposting.61. Rebooking function can be use only in combination with reversal function.62. Segment adjustment is possible for assessment, distribution and for periodic

reposting.63. Individual segments are reused and rebooked but not whole cycle.

MANUAL COST ALLOCATION: -

64. Manual cost allows you to post primary and secondary cost manually.65. Manual cost allocation does not required any customization.

66. Manual cost allocation is applicable to all cost categories except category 43 (direct activity allocation).

67. Sender and receiver include cost center, internal order, WBS elements, business process, network, cost object real estate objects and customer objects.

68. Manual allocation can be done for actual data only.69. Account determination helps you decide which reconciliation account posting are

to be made.70. Adjustment account is required for secondary cost element.71. Reconciliation posting to FI can be making any time.72. Period lock is used to lock plan and actual business transaction for combination of

controlling area, fiscal year and version.73. It is possible to lock individual business transaction for all period.74. It is possible to lock all business transaction for a particular period.

CCA PLANNING

1. Aims of planning: -(A) Can structure of your business transaction.(B) Benchmark to control(C) Comparison can be done with plan and actual data and target with actual

data(D) Base for valuating business transaction.

2. Plan data can be saved only in alternative version.3. Actual posting always version 04. Definition of version applied for whole controlling area.5. Controlling version create centrally and add application specific settings for PA,

PCA and IO6. When create a controlling, system automatically create version 0 which is valid for

5 fiscal years.7. Planning can be done for: -

(A) Statistical Key Figures(B) Activity type (C) Primary and secondary cost(D) Revenue planning

8. Activity input from other cost center cant plan.9. The planning data is entered in controlling using entry screen, the layout of which

define in customizing. These screens know as planning layout.10. Planning area in cost center accounting: -

(A) Cost element/activity input(B) Activity output/price(C) Statistical key figures

11. For each planning area at least one planning layout should be created.12. Planner controls the planning process.13. Planner profile can have no of planning layouts to any number of planning area.14. Planning can be done centralized or decentralized.15. At a time centralized as well as decentralized planning can be used.16. Planning layout is defined using report painter.17. Planning layout consists of header and multiple lead and value columns.18. Selection criteria of planning defined in header.

19. For activity independent planning, need only one lead column for cost center.20. Planner profile can define with setting for overhead cost planning, profitability

analysis and profit center accounting.21. Sequence for planning: -

(A) Statistical key figures(B) Activity output (C) Price planning each cost center (D) Primary cost planning.

22. Primary cost can be planned manually as well as automatically.23. Automatic planning for primary cost plan periodic reposting, plan distribution,

plan accrual.24. Secondary cost element can be automatically plan ( plan assessment)25. Statistical key figures are used as tracing factors for periodic reposting,

distribution and assessment.26. SKF use to plan: -

(A) Create company key figures on cost center.(B) Provide receiver base for internal allocation.

27. System interprets the value entered in the entry screen as total value for the period.

28. Distribution key is used to do period based distribution of the total value.29. Defaulted as well as standard distribution key cant be changed.30. Standard distribution key 1 used for distribute planning value evenly in all period

and standard distribution key 7 used to distribute planning value in all period by number of calendar days.

31. Customer Distribution key can be defines as many as per the requirement.32. Primary cost that are activity independent, can plan only the fixed costs.33. Resource planning is done for planning primary cost and revenue for cost center,

IO and WBS.34. If resource price are updated, system update plane price automatically.35. You can choose between activity dependent and activity independent planning of

resources.36. By assigning several resources to one cost element, chart of a/c can be reduce

without loosing important information for cost analysis.37. In dependency planning both activity dependent and activity independent primary

cost base on value and quantities.38. Formula planning lets you use calculation dependencies to plan your cost center

cost.39. Formula planning support manual planning.40. Formula planning template can be used in more than one cost center master data.41. Planning process can be locked to prevent changes being made.42. Lock indicator is available in planning version.43. Planning can be locked for a combination of controlling area, fiscal year and

version.44. Planning can be copy: -

(A) Within fiscal year, version and cost centers.(B) Between different fiscal year, periods and version.

45. In revaluation planning data can be increase or decrease on a percentage bases.46. Cost and amount can also be revaluating.47. Revaluation can be done for all the cost elements used in the primary cost element

and revenue planning.

48. Revaluation cant be done for assessment cost elements, input cost element and cost element used in indirect activity allocation.

INTERNAL ORDERS (OVERHEAD ORDERS)

2. In the master data of internal order, we have to decide whether it is REAL or STATISTICAL order.

3. The real orders are used to collect the cost and distribute to other objects.4. Cost on real orders is settled.5. Real orders are assigned to company code when created.6. If business area balance sheet selected in FI, the order MUST assigned to business

area also.7. While posting a transaction if internal orders