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Question : Subject : Asset with zero depreciation

Hi,

Would you mind telling me how to do if I want to create an asset with zero depreciation.

What customizing needed?

Many thanks in advance

Reply : Subject : Asset with zero depreciation

Use a depreciation key in the book/depreciation area(s) that doesn't calculate depreciation. SAP delivers depreciation key
0000 No depreciation and no interest. When you create the asset and get to the section for depreciation keys, remaining useful life, depr start date...... Put 0000 in all the depr areas where you don't want depreciation to be calculated.

Reply : Subject : Asset with zero depreciation

Hi

You can set the depreciation key to 0000 wich is one of the standard keys.
You don't have to make customizing.

regards

No depreciation for a period of time

If you have an asset which would not be used for production purposes for next six months as the plant is being closed.

Therefore you don't want to retire the asset and neither do you want depreciation to be carried out during these six months period.

Once the plant is opened, from then on, you want to execute the depreciation run.

You can utilize the Asset Shutdown feature on the Time-dependent tab of the asset master record.

Select the Asset Shutdown checkbox - create a time interval - Save.

If you cannot find the checkbox, it could be hidden :-

In AS02 click Environment -> Screen Layout -> Master data

Select the Screen Layout and click Logical Field groups
Select 3 - Time-dependent and click Field group rules
Tick Opt, Mnno and Sbno - Save

Optionally, you can set the Depreciation key in the Deprecation Area Tab.

You can also change the depreciation key to '0000' (No depreciation and no interest) for each of your depreciation books. Just make sure you have run depreciation up through the current month before doing so. When you are ready to put the asset back into service, reset the keys to their original values. The system will calculate no depreciation during the months where you have the key set to '0000'.

Transfer of Fixed Asset

4.6x

Transaction code ABUMN - Enter Asset Transaction : Transfer within Company Code

• Enter Asset to be transferred
• Enter Document date, Posting date and Asset Value date.
• The asset value date is the value date for Asset Accounting. It can deviate from the posting and document date and be in posting periods already closed for Financial Accounting. However, the posting year and asset value year must be the same.
• If you want to enter a new description, you can enter it in the description field. If you want to carry over the existing description, leave the field blank.
• Enter new asset class. Asset class determine the accounts to which depreciation expense is posted.
• If you are transferring from one business unit to another, you should enter the old asset class.
• Click New asset -> Click Master Data
• In the Reference section, it will default to Sending asset
• Enter the business area and cost center to which the asset is to be transferred. If the asset has inventory number plant and location, enter them in the respective fields.
• Click on Additional data to go to the next screen.
• Click on the Tabstrips Depreciation Areas.
• The remaining useful life should be entered. Since the asset will just be transferred, it will be treated as an acquisition in the new business unit.

Note :-

To Change your Asset Classes :-

IMG -> Financial Accounting -> Asset Accounting -> Organizational Structures -> Asset Classes -> Copy Asset Classes from Reference

Changing the YTD depreciation

ABZU - Write-up

Allows you to adjust when you forgot to capitalize an asset in a fiscal year that is now closed.

Depreciation you calculated in the past were too high. You must now correct this error using a write-up in the current fiscal year.

Rules for posting depreciation

Rules for posting depreciation

In transaction OAYR (double click the depreciation area), you can post the depreciation expense to Cost Centers by ticking the field 'Assign cost centers'. This option will let you post the depreciation to the cost centers.

Invoice Verification vs. Logisitics Invoice Verification

Does anyone know the main difference between the old Invoice Verification functioanlity and the new Logistics Invoice Verification functionality in MM?

An LIV posting results in two documents, one for MM and one for Accounting. Conventional IV posting only results in one accounting document.

We implemented LIV just a couple of years ago and find it much faster than Conventional because of the background job processing. It is true that you could manually enter each invoice in LIV and it wouldn't seem that much different. But with batch processing, we enter 4 fields of information in the MIRA screen and run the RMBABG00 program every 1/2 hour to process all the items. If everything matches, it sets up the accounting document with less entry. It also allows the invoice to be entered prior to receipt. Then when the item is finally received and it matches it will be paid.

Be aware you now have to have to add a task of someone monitoring all the invoices that don't match but we feel in the long run we have still saved half of the entry time from entering each invoice online individually in conventional.

Logistics Invoice Verification was developed to take into account requirements (distributing MM and FI, managing mass data) that were technically not possible in the conventional Invoice Verification component.

Certain functions that were possible in conventional Invoice Verification have deliberately been omitted in Logistics Invoice Verification. It is not possible, for example, to post invoices directly to a material or a G/L account without any other reference.

Other functions, on the other hand, have not yet been implemented. Consignment withdrawals, for example, are settled in conventional Invoice Verification.

The following functions in conventional Invoice Verification are not possible in Logistics Invoice Verification:

- Verification of invoices with no reference in the system to a purchase order or a goods receipt
- Posting directly to a G/L account, asset or material
- Changing the account assignment in the purchase order
- Simulation of documents

Some new functions are only possible in Logistics Invoice Verification, including:
- Unlimited multiple selection
- Manual invoice reduction
- Automatic invoice reduction
- Invoice verification in the background
- Verification of invoices with instalment conditions
- Posting across company codes

You can use the conventional Invoice Verification component and Logistics Invoice Verification along side each other. You could, for example, post all invoices with a system reference in Logistics Invoice Verification and those without in conventional Invoice Verification.

Copy Vendor Code Master from One Company Code to Another

You have 2 options:-

1. Create a batch input session that can be executed in the same client.

2. Create an external file that can be executed in the other client.

FK15 - Transfer Vendor Master Data from Source Company Code: Send

FK16 - Transfer Vendor Master Data from Source Company Code: Receive

Print cheques thru F-58 (post & print) option

Print cheques where there are no open items or invoices e.g. advance payment to vendor or some one time party, where no open item exists.

When you complete the transaction F-58, go to transaction code FBZ5 and give the document number which you generate using F-58.

Automatic Exchange Gain/Loss for Vendor

To configure the automatic exchange gain/loss general ledger account determination :-

• OBA1
• Double Click on Exchange rate difference in open items
• Double Click on the General Ledger account
• Enter the accounts for vendors for the differences
• Realized Loss
• Realized Gain
• Valuation Loss 1
• Valuation Gain 1
• Valuation Balance Sheet adjustment 1
• Translation Loss
• Translation Balance Sheet adjustment loss
• Translation Gain
• Translation Balance Sheet adjustment gain

Accounts may be entered for balance sheet adjustment accounts to segregate Revaluation entries for vendor and debtor.

Clearing in Local Currency

Effect of clearing in Local currency :-

Purchase USD 1000 at 1 USD = 2 XXD. The accounting entry in Local Currency is

Purchase account Dr 2000
Vendor account CR 2000

Paid when the exchange rate is 1 USD = 1.8 XXD. In this case, the party is supposed to pay local currency equivalent to Foreign Currency and in this case will be 1800 XXD. When he pays XXD 1800, the following accounting entries area passed :-

Vendor account DR 2000
Bank account CR 1800
Gain on Foreign Currency fluctuation CR 200

At the time of clearing, the system expects the amount to be at the present exchange rates and the difference is posted to the Foreign Currency rate differences account. If this differences are not required or the payment in local currency is expected to be paid at the exchange rates prevailing at the time of sale/purchase transaction took place, then there is a facility in company code Global settings screen to elimate the differences. In this case and in the above example the receipt would be XXD 2000. The differences are not recorded.

To set the clearing in local currency :-

• OBY6 - Company code Global data
• Double click your Company code
• Tick the no ex. rate diff. when clearing in loc. curr

Check the clearing of GR/IR account

I check the unclear documents as follows:

1. Check your settings for program SAPF124 in transaction OB74

2. When executing program SAPF124, tick the "GR/IR account special process" flag and select "Detailed list with error
log"when running SAPF124. Review the log to see why the GRIRs are not clearing

3. Run transaction MR11 in "Prepare list" mode to see why the GR IR's are not clearing.

Payment Terms Plus No. of days/Months

OME2 / OBB8 - Define Terms of Payment

Create a new Payment Term or Copy an existing one and call it say "EX45"
Give it a 'Sales text' - appears on sales invoice if you will use it for Customers
Select applicable for Vendors and/or Customer - tick boxes
Leave 'Baseline date Calculations' blank
Choose 'Document Date' as default for 'Calculation of Baseline Date' - radio button
Leave payment block / payment default blank - unless you wish to have defaults applicable for this payment term only
In the 'Payment Terms' Section - on the 'Term 1' line leave everything blank except put 45 in the 'No/days' column

This means that when you choose this payment term, the baseline date is adopted from the document date and the due date is
equal to baseline date PLUS 45 days.

Terms of Payment

Customer payment time-frame allowed and the discounts amount given for early payment if any.

Day Limit - e.g. if you enter 15

An invoice date on or before the 15th of the month are payable on the last day of the next month

An invoice date after the 15th of the month are payable on the 15th of the month after the next month.

If a customer is also a vendor

You can have the payment program and the dunning program clear customer and vendor open items. You can also select the vendor line items, when you display the customer line items for this account.
Before you can clear between a customer and vendor account, you must:

1. Create a customer master record for the vendor that is also a customer.
2. Enter the vendor account number in the Vendor field in the control section of the general data in the customer master record.
3. Enter the customer account number in the Customer field in the control section of the general data in the vendor master record.
4. Click in the box next to the Clrg with vend. field or Clrg with cust. field (this field will appear in the Automatic Components payment transactions section, only after Vendor field in the control section have been keyed) in the company code data in both the customer and vendor master records. In this way, each company code can decide separately whether it wants to clear the customer with the vendor.

Reused common GL Account Posting (transaction F-02)

Certain GL Account Posting might be repeated, you can do a copy of the posting entry and only key in the amount that are always different.

e.g. Dr 12345 100
Dr 45678 50
Cr 98765 150

Steps:-

• go to transaction FKMT - Account Assignment Model
• Key in the Act Assignment mode e.g. XYZ - Names related to the Entry
• Click Goto -> Line items
• Key in the DR/CR enteris. company code, GL account, TX, BA, Cost Center etc.
• Save

During G/L Account Posting - F-02

• Click the Act Assignment model button

Filled in the Act Assignment mode Names and hit enter to update the entries

Configure the Monthly fixed amount payment

Recurring Document such as fixed phone charges

FBD1 - Enter Recurring Entry
Page 1
Recurring entry run
First run on - when you want to start the recurring entry posting
Last run on - when you want to stop this recurring payment
Interval in months - weekly or monthly payment
Run date - which days you want it to post e.g. 28th of every month

Document header information
Document type Currency/rate
Reference document
Document header text

First line item
Key the entry e.g. Dr/Cr key, General Ledger Code

Continue the rest such as Amount......

At the end of the month, you have to run F.14 - Create Posting Documents from Recurring Documents
Menu steps: Accounting - Financial Accounting - Accounts Payable - Periodic processing - Recurring enteris - Proceed

General Selections
Calculation period e.g. XX.XX.XXXX

Output Control
User name

You need to used SM35 to Process the Batch Input Session. Check the session log for the Accounting Document Numbers.

How To Run Automatic Payment

Procedure on how to run automatic payment. Just follow these steps and you will be fine.

Automatic Payment program ( /nF110)
Db Inventory 100
Cr Vendor 100

Db Vendor 100
Cr Cash Clearing A/c 100

Db Cash Clearing A/c 100
Cr Bank A/c 100

1. To create a Cash clearing GL Account(A/c no. 113104) in (/nFS00)
- Make sure you check Open Item Manage and Line item Manage.

2. Goto /nF110
- in the Menu, Environment -> Maintain Config
then you will see:
- All company codes
- Paying company codes
- Payment methods in Country
- Payment methods in Company code
- Bank Determination
- House Banks

Do no changes for the All company codes, Paying comapany codes and Payment methods in country.

In the Payment methods in comapny code give your companies Address in the Form View field.

Then go to House Banks.

Give your Company Code and hit enter
Select the company code 3000 with Currency as USD and copy it give your own.

House bank:

Hit enter and then say copy all and then give your:
- Account ID
- Bank account Number (9 digits) :
- G/L account no:(cash account 113100)

Then save it and you will get 1 entries copied.

Select Bank Determination and then give your compnay Code and then select
- Ranking order with Pmt Type C and Currency USD , then change the House Bank from 3000 to your House bank no.
- Bank Account select 3000 C USD 3000 113101 and then copy it and give your information
vp02 C USD VP02 113104
and save it

-Available Amounts select 3000 3000 5 USD
999999 9999999 and then copy it to
vp02 vp02 5 USD
999999 9999999
and save it

Ignore Value date and Expense/Charges.

Next Step is to create Check Lot

Goto /nf110
Enviroment -> Check information -> Number Ranges

Give your information
Paying Comapany code:
House Bank:
Account ID:

and then click on change icon(pencile icon)
then click on create, give the following information
Lot Number:001
Check Number:
To:

Short Info:

and save it.

and next is to go to /nse38 and give the program name RFFOUS_C

Note:
RFFOUS_C(to remember, US-Check) is the one you compied in Payment Methods in country under the Environment -> Main Config

Then check on variant and click on change give your variant(VP02) and select copy from CHECK to your variant
(VP02)
and then click on change
and give the following information:
Program run date: (blank)
Identification Feature:(blank)

Paying Comapany Code: VP02
House Bank:VP02
Account ID: VP02
Check lot number:001

Printer: LP01 and check Print Immediately
give Number of sample printouts : 0
and then click on variant Attributes (give your own variant) then save it

Now give /nf110

Rundate:09/21/2006
identification:vp02

In the parameter tab,
Company code Pmt method Next P/date
VP02 C 09/30/2006

Vendor: 1 to 999999

In the Additional Log tab,

select check

Due date check
Pmnt methoed selection if not succesfull
Line items of hte payment documents

In the print out/data medium tab,

Program Variant
RFFOUS_C VP02

and then save it
and then go to status tab and you will see parameters have been
entered.

then click on proposal,
start date: check start immediatly
start time:

and then execute it

Hit enter key till you get started, running and created.

Go to edit -> proposal -> Proposal List

See whether your proposal is been executed without errors.

Note:
If there is error goto edit -> Proposal -> delete proposal.
Not due ones are not payed.

and then go back
and then click on payment run and execute it with start immediatly hit enter till it is 2 generated and 2 completed.

Then click on Printout execute it and then give your Job name(change the last ? to 1) in the status bar you will see your job name to be scheduled.

Make sure the payments are don in /nfb02
giving the document number(2000000000) and make sure
2000000000 ZP (amount)
2000000001 ZP (amount)

Then go to /nsp02, to see the print outs preview.

Its all done.

Fixing of Limit for Auto Payment Programme

Is there any provision in SAP to Fix the Allocation of Amount for the Auto Payment programmes. If so, please
describe about the same.

Anand Kumar

Use tcode OBVCU, here you can enter amont to be available for the payment program.

Kittu

Thanks for your Information.

I understand this code relates to the technical people it seems, can you please let me know more about this code and process for fixing the same.

Anand Kumar

This settings should be made by the functional consultant and not technical team, by OBVCU, you get the screen where you can click your company code and then click bank determination, here you can allocate amount for outgoing and incoming
payments for each bank. I believe that you are referring to amount to be available to payment program. If you are talking about something else, please let me know.

Kittu

Thanks for the information that you have shared with the group.

Is it possible that, when a co has say 3 banks and in the ranking order for auto payment run, can we assign max amount for each bank to pay and if the limits are reached the payment is from the next bank. If possible how to do this.

Siddharth

Yah you can rank the 3 House Banks of your Company and then max limit for each Bank. Thereby one after another based on the max limit set the payments will automatically be made.

The procedue for doing the above customisation is as follows: -

1) SPRO-FA-AR&AP-Business Transactions-Outgoing Payments-Automatic Outgoing Payments-Payment Method/ Bank selection for payment program-Setup Bank Determination for Payment transactions

2) Select your Company Code

3) Double click Ranking Order

4) Select New Entries Button

Payment Method Curre Rank Order House Bank
C INR 1 ICICI
C INR 2 HDFC
C INR 3 SBI

5) Double Click Bank Accounts
Select new entries button
House Bank Pay.Method Curr Acct ID Bank Sub Acct
ICICI C INR ICICI1 200101
HDFC C INR HDFC1 200102
SBI C INR SBI1 200103
Then Save

6)Double click Available Amounts
Select new entries button
House Bank Acct ID Days Curr Availability Outgoing Payment
ICICI ICICI1 999 INR 500000
HDFC HDFC1 999 INR 800000
SBI SBI1 999 INR 600000
Save

I hope I am clear. If any doubts pls get back.

Ashok

Thanks a lot for the information. It works.

FBL1 - Display Vendor Line Items - Configure the line item settings

• 07F4 - Choose line items selection criteria
• O7Z3 - Define line layouts
• O7R1 - Define total variants

How to Void a Cheque/Check?

Accounting->Financial Accounting->Accounts Payable->Environment->Check information->Void-> Unused checks / Issue checks / Cancel payments

A cheque was generated for a vendor, but was voided because the amount is wrong. A new cheque is generated, but again it
was wrongly created. So, it needs to be voided but there is an error message during cancellation of this payment "Voided cheque cannot be processed".

When you void a cheque/checks you have to reverse and reset the payment document.

Accounting->Financial Accounting->Accounts Payable->Document->Reset Cleared items

After reversing, the payment documents becomes an open items (unfinished transactions) to be clear.

Then re-process the payment.ac

Assign the Vendor Number Range

XKN1 - Assign the number range to the Vendor Account Group

After creating the number range, you need to assign it to a Vendor Group with OBAS.

Now, the different vendor group numbering will not overwrite each other.

What is a Vender Account Group?

Usually, company use different Vendor group for different categories of vendor. Each group can be separated as regular or irregualr vendors or one-time vendors.

Each vendor master can have different fields set as required, optional or suppressed.

Start transaction OBD3 to configure the Vendor Account Group for :-

• General data - Valid for vendor master irregardless of the company code used.
• Company code data - Valid at company code level only.
• Purchasing data - Mainly for MM.

Control the Vendor Master Fields

You can control the Vendor Master display of fields in transaction code OBD3. You will need to set this for each Vendor Account Group.

For example, if you does not want to checked for duplicate invoices: Vendor #, Reference #. Date.. in the system.

Goto transaction OBD3,
double click on the Vendor Account Group,
double click on the Company code data
double click on the Payment Transactions
Change the Double invoice validation field to required or optional.

Enter Invoice for Purchase Order

4.6c

MIRO - Enter Invoice

To change the Tax Amount

• Click the Tax Button
• Untick the Calculate Tax
• Change the Tax Amount and ignore the warning for the differences

How is Park Invoice Different from other Invoice

How is park invoice differ from other invoice?

Ashish

In Park document, enter the invoice data. It does not matter if:

- Your entries are complete or incomplete
- The balance of the document is zero or not

The system does not carry out any checks, as you can correct or add more information to a parked document later on.

In two scenerio, Invoice document will be parked.

1. An employee is interrupted or clarify certain issues when entering an invoice. He or she can park the document and continue processing it later on with save at that stage without entering data twice.

2. Organizational process is in such a way that one employee parks invoices without checking them. Another employee then performs invoice verification and posts the parked documents, possibly after changing them

There is difference between Document "Park" and "Hold".

Hope it cleared the concept.

Rahul

Is it possible to make the parking function automatic?

My client wants Invoices to be parked automatically after entering . It should not be available for payment.

Later on another person looks at all parked invoices, verify and release the same for payment run.

Mitesh V. Desai

I could not understand you a means of Automatic function. Duroing invoice entry you use /nMIRO or /nMRHR transaction code and for Invoice parking /nMIR7.

You can use Invoice verification in the background as customizing IMG-MM-LIV-define Automatic staus change.

Rahul

My client’s requirement is very straight forward but I am not having the correct solution.

Client wants to enter invoice through MIRO which should be always parked on saving and not available for payment.

Later on another person looks at all parked invoices and release it for payment manually.

Do you have any solution for this ?

Will you please let me know the detailed configuration settings for Invoice verification in the background as customizing
IMG-MM-LIV-define Automatic staus change ?

Mitesh V. Desai

Here is solution for your client's specific requirement.

1.Use TR "MIRO" for entering Invoice at first stage. Then click for "HOLD". It will create invoice document no.

2.Use TR "MIRO", Click on "Show Worklist". Search created invoice document no. in "Held Documents" which will be under held invoice below "Worklist" .

3.Select that held invoice document and double click on it and "Simulate" as regular after checking (e.g. other person).

4.Then Post/save it. After posting, refresh which will result that invoice document under held category is disappered.

It will give what required by your clients as Document holding and posting through MIRO. He can prepare so many documents under HOLD condition and post it later as and when required after editing or approving.

Configure the Payment Program

FBZP - Maintain Payment Program

ALL COMPANY CODE - Set your company code to be avaliable to the payment program.

PAYING COMPANY CODE DATA - The company code used for payment.

PAYMENT METHOD IN COUNTRY - Payment by checks, Bank transfer etc.

PAYMENT METHOD IN COMPANY CODE - Futher details of payment method.

BANK DETERMINATION - Bank to used

HOUSE BANK - Bank accounts used by company

Check number used for payments

FCHI - Check Lot

• Define the check number range that your company used for payment.

FCHV - Define Void Reason Codes

• Sometimes, you might need to void the check for some reasons. Something like writing a check and then cancelling it.

• FCH3 - Void checks not used
• FCH9 - Void Issued checks
• FCH8 - Cancel Payment Payment

What is the meaning of House Bank in SAP?

Bank that your company used for banking purposes.

It is also the first step for configuring your Account Payable Modules.

FI12 - Configure House Bank

Question : Subject : Different Account Codes For Credit Memo

Hello Guru's

Please suggest me how we can define the seperate Reversal Account Code for the Sales Return Transaction (credit memo) in comparisson to original sales invoice acctg doc with the following conditions:

1. Sales Order will be raised for "Return Delivery" (RE Type Order) with reference to Original Sales Invoice Document No. Therefore, all the data will be copied from the sales invoice to sales order for Return Delivery including Pricing Procedure/Conditions.

2. Account Key is defined agst. Condition type for Automatic Account Determination therefore account codes are determined on the basis of account keys in condition type.

Problem is

Say four lines in Accounting Doc are there in Original Sales Invoice
Line 1 : Sales Revenue A/C
line 2 : Excise Tax A/c
Line 3 : Sales Tax A/c
Line 4 : Customer A/c

At the time of raising the Credit Memo to Customer agst the "Return Delivery" Sales Order, system is reversing the same accounting document using the same account codes for taxes and sales revenue which were used in original sales invoice accounting doc.

Our requiremnt is that Line 1 to 3 for revenue and taxes we want to post in different account code instead of posting to same account code used in original sales invoice acctg doc.

Please tell me how it could be possible WITHOUT changing the "Pricing Procedure/Condition" (as used in original sales order) in the Return Delivery Sales Order.

Reply : Subject: Different Account Codes For Credit Memo

Copy the original pricing procedure and change the account keys and GL accounts u need to assign for the returns... and assign this new pricing procedure to the return billing... I think this will work... actually the conditions in both the pricing procedure are same... this may work... check up...

Thanks & Regards,

Reply : Subject: Different Account Codes For Credit Memo

here is a suggestion. i also used ke30 today for the first time. i found the value fields to be set up the same as in the PA Transfer Structure found thru: IMG-Controlling-Product Cost Controlling-PA Transfer Structure. I had to set these up because we went live on CO-PA well after we went live on R/3.

Question : Subject : VA88 - sales Order Settlement

Hi,

We are trying to automate Transaction VA88 - Sales Order Settlement, but we are unable to save a variant.

Any ideas ?

Reply : Subject : VA88 - sales Order Settlement

hello,

we use a custom abap through se38 to settle our orders nightly. we use va88 to reverse and settle those individual orders which slip past the abap due to various reasons.

Reply : Subject : VA88 - sales Order Settlement

To run in the background in a batch session, we use the program RK07VA88 (in 4.6b). There was an OSS note #172325 that discusses this issue.

Hope this helps.

Reply : Subject : VA88 - sales Order Settlement

Hi,

This is exactly what we need. Thanks a lot.

Define the Customer Account Groups Screen Layout

OBD2 - Define Account Groups Screen Layout

Customer groups allows you to have separate purposes and field status for different types of customer.

For e.g. segregate by sold-to party, ship-to party and bill-to party.

With the different groups, you can make different fields required, optional or suppresed for each of the groups.

SAP SD Credit Management

All business have their own credit management needs, SAP allows you to specify your own automatic credit checks based on a variety of criteria. You can also specify at which critical points in the sales and distribution cycle the system carries out these checks.

SM30 - Table/View

• V_TVTW - Define Distribution Channel
• V_TVTA_KKB - Assign sales area to credit control area
• V_T014 - FI - Define Credit Control Area
• T001CM - FI - Assign Permitted Credit Control Area to company code

OVXG - Set up Sales Areas
e.g. Sales Organization
Distribution Channel
Division
Distribution Channel
Division

FD32 - Customer Credit Management

OVAK - Define credit limit check by sales document type

• Check Credit
• A - Credit limit check and warning message
• B - Credit limit check and error message (no sales order can be created)
• C - Credit limit check and delivery block (block delivery if hit credit limit)
• Options B and C -> used for checking open order values (when you create/change the sales order)
• D - Automatic credit control with open order values
• More control in transaction OVA8 - Automatic credit control
• You check for open orders and deliveries, or just open deliveries.
• or open order values with other options
• Credit group
• Allows you to combine different sales document types for the credit limit check

VKM1 - Blocked SD Documents - Finance have to released the delivery block

OVAD - Define credit limit check by delivery order

• whether the automatic credit check occurs at the time of delivery creation and/or goods issue

OVA7 - Define credit limit check by item category

• Set whether to include/exclude item category for credit limit check

OVA6 - Define credit group. You can groups together different business transactions which should be dealt with in the same manner with regard to the credit check.
You enter the credit groups when you configure the sales document types for credit management and define the (D - automatic credit check).

• SAP default credit groups
• 01 - credit group for sales order
• 02 - credit group for delivery
• 03 - credit group for goods issue

OVA8 - Automatic credit control - Double click on the line items

You can have the followings credit limit check :-

• Static

Depends on the customer total value of open orders, deliveries, billing documents and open items.

• Open items

No of days open
Overdue open items checks is based on the ratio of open items that are overdue by a certain number of days.

Max open items %
The customer balance must not exceed a certain percentage.


• Oldest open items

If you don't want to deliver to the customer at all when even only 1 invoice is overdue.
Tick the Check for Oldest Open Item and Set the field Days oldest item = 1.

Days oldest item
No of days allowed for overdue or payment terms.

Use of the credit check Oldest Open Item. If a user attempts to alter the order quantity of a released sales document
that was previously blocked, it would be reblocked again by the system. The system only reblocks the sales document if the new order quantity is above a certain % amount.

• Released documents are still unchecked

The preset % is whatever you want to set it as when configuring your automatic credit processing. You enter a deviation % and number of days,eg, you can set it so that an order can be changed by up to 10% within 30 days of original order entry date without it going back on credit block.

• Next Review Date

If a customer has a credit limit of 1000 USD, and you would like to restrict this credit limit only to be available in current month (say March). If the document day is in April then the credit limit is zero.

You can use the "NextReview date" and "Number of days" fields and combined it with the "Last int.review" field in customer credit master "Status" view (FD32).

VOKR - Display of work list for credit management (configure the display variant)

IMG Settings for SAP FI Credit Management

Explain credit control area and why do we create them.

The Credit Control Area is an organizational unit that represents an area responsible for granting and monitoring credit. Credit information can be made available per customer within a credit control area. One will use one credit control area that is four characters “JHEN”. All of the available functionality for credit management will not be used since a service has already been provided.

Stopping the billing process is not an option Organizational unit in an organization that specifies and checks credit limits for customers. A credit control area can include one or more company codes. It is not possible to assign a company code to more than one credit control areas. Credit and risk management takes place in the credit control area.

4.6x

OB45 - Maintain Credit Control Area
A company code can be assigned to one credit control area. However, a credit control area can be assigned to more than one company code.

OB38 - Assign Company Code to Credit Control Area.
If your company have different business area, you can assign each with a Credit Control Area. e.g. 0001 for BA-A, 0002 for BA-B, 0003 for BA-C etc. In this case, the same customer master code can have different credit limits for the different Business Area.

OB01 - Define Credit Risk Categories.

OB02 - Define Account Clerk Groups

OB51 - Define Credit Representatives

OB39 - Define Intervals for Days in Arrears for Credit Management

Define the Customer Tolerances

Allows you to specify the :-

• maxiumum payment difference that can be charged to a G/L account,
• maximum cash discount percent amount,
• maximum allowable payment difference in percent terms up to a certain amount.

OBA3 - Define Customer Tolerances

Automatic Postings for residual or G/L postings

Determine the G/L accounts that are posted for each individual reason code.

OBXL - Define Accounts for Overpayments/Underpayments

Default Transaction ZDI.

Maintain the Posting keys (button) and Rules (button).

OBXI - Define Cash Discounts

Default Transaction SKT.

For company that give cash discount to customers.

Reason Code for Overpayment/Underpayment in sap fico

OBBE - Define reason code for Overpayment/Underpayment
Classification of Payment Differences for underpayment and overpayment in AR line items.
With reason code, you can define whether the difference should be charged off to a G/L account or if a residual posting should be made.
A residual item results when a payment is made for less than the actual amount outstanding (1000 paid 700, outstanding 300). You clear the original open item (1000 against the customer account), and the system posts a new open item (300). This new open item is for the same amount as the original open item minus the amount paid.

OBCR - Define reason code Conversion Version

OBCS - Define Conversion of Payment Difference Reason Codes

Billing - Release to Accounting - Error Message Posting period is not open

Solutions:-

• Go to transaction VA02
• Click Header -> Details
• Change the Billing date fields to the period with are open.

Configuring the Interest Calculations Procedure in sap fico

This configuration allows you to charge interest on overdue customer accounts. Interest can be calculated by using the line items or overall account balances. SAP keep tracks of the date of the last interest run and stores it in the customer master record.

First create an Interest Indicator.

• OB46 - Interest Settlement Calculation Type

Int Calc. Type
P - calculate interest based on line items.
S - calculate interest based on account balances.

Secornd, make it avaliable to the interest run program.

• OB82 - Interest Terms

Third, determine the interest rate that will be used by the calculation.

• OBAC - Define Reference Interest Rates
• OB83 - Enter the Reference Interest Rates Value

Fourth, assign the interest indicator to the reference interest rate.

• OB81 - Define Time Dependent Terms

Finally, determine the how and to which accounts the interest program will post.

• OBV1 - Prepare Interest on Arrears Calculation

FICO Topics

SAP FI GL

• Company code configuration which includes creating chart of accounts,
• Creating posting period variant, defining retained earnings account,
• Creating document types. Define tolerance groups for employees
• Configuration for Maximum exchange rate differences
• Configuring parallel currencies
• Configuration for automatic clearing
• Configuration for foreign currency valuation
• Configuration for regrouping of GR/IR clearing
• Creating financial statement version i.e. defining balance sheet and profit and loss account
• Integration - FI- MM automatic account assignment, FI- SD automatic account assignment

SAP AR & AP & Bank accounting

• Configuring account groups for Customers and Vendors, defining screen layout per activity for customers and vendors
• Deleting customer data
• Configuring payment terms
• Automatic account assignment for various AR & AP transactions like bank charges, overpayments/underpayments, exchange rate difference, rounding differences
• Configuring payment block reasons
• Configuring automatic payment program
• Includes House bank configuration
• Configuring the manual bank reconciliation and the electronic bank reconciliation
• Configuration for dunning
• Configuration for special G/L transactions like down payment made, down payment received
• Configuration for regrouping according to maturity

SAP Asset Accounting

• Creating/Copying Depreciation Areas- Assignment to company Code,
• Input Tax Indicator Configuration , Screen Layout Rules
• Specify Account Determination Rules - Define Asset Classes, Number Ranges,
• Critical Check Boxes Notification
• Integration of Asset Accounting with General Ledger, Defining Posting Rules to Cost Center, Specify Financial Statement Versions for Asset Accounting
• Complex Depreciation Calculation Procedures- Setting up of Depreciation Areas, depreciation key, Define Cut off Value key
• Defining the crucial Base Methods, Declining Balance Methods, Multilevel Methods, Maintaining Period Controls
• Pre Production Go Live Activities and Their Configuration

SAP Cost Center Accounting

• Maintaining controlling area settings, which includes defining modules which are active i.e. profit center, profitability analysis, internal orders. Assigning company code to controlling area.
• Multiple valuation approaches/transfer prices - maintaining currency and valuation profile assigning it to controlling area, creating actual versions for parallel valuations
• Cost element accounting - creation of various types of cost elements
• Settings for Reconciliation Ledger which includes defining adjustments accounts for reconciliation postings
• Creating cost center hierarchy, cost center, cost center groups, activity types, statistical key figures
• Creating planning layouts for cost center planning
• Configuring various allocation cycles - Distribution, assessment, indirect activity allocation. Configuring the splitting structure
• Configuring automatic account assignment table.

SAP Product Costing & Material Ledger Configuration (Sells separately for $249)

• Product Cost Planning- Detailed configuration of overhead keys, costing sheets, overhead groups and Complete Cost Component Structure
• Material Cost Estimates - In depth configuration and analysis of the Costing Variants including Valuation variant, Transfer Strategy and Costing Types
• Special Features of Cross Company Costing
• Complete Cost Object Controlling Configuration across various industries including Repetitive Manufacturing
• Complete Integration with Production Planning on Default Order types, parameter checks
• Work in Progress Configuration- Calculation of Results Analysis keys, Valuation Method and Assignments.
• Detailed Variance Calculation configuration and setting up of Variance keys
• Setting up the Settlement Profile, Allocation and Source Structure including the complex PA Transfer Structure
• Detailed configuration for Sales Order Costing - Make To Order (An absolute steal)
• Detailed configuration for Make to Stock ( An absolute steal)
• Detailed configuration of Material Ledger ( A real value add)

SAP Profit Center

• Maintaining profit center settings, creating dummy profit center, making settings for actual flow of data.
• Maintaining profit center hierarchy, creating profit center
• Maintaining settings for transfer prices
• Maintaining planning layout for profit center planning
• Configuring allocation cycles - Distribution, assessment
• Maintaining automatic account assignment of revenue elements
• Maintaining the additional balance sheet and profit and loss accounts (3KEH)

SAP Profitability Analysis (Sells separately for $199)

• Configuring the operating concern which includes maintain characteristics, maintain value fields. Copying customizing from an existing operating concern
• Maintaining user defined characteristics, maintaining characteristics hierarchy
• Define Characteristics derivation
• Configuring valuation strategies. Valuation using standard cost estimate
• Configuring condition tables and costing sheets
• Manual planning, automatic planning, integrated planning
• Configuring the value flow from SD to COPA, configuring the value flow from FI, MM to COPA
• Configuring assessment cycle for value flow from CO to COPA
• Configuring settlement of production variances to COPA
• Configuring Profitability reports for COPA

User Training Documents and Power Point Presentations for Each of the Above FI CO Sub Modules.

User Training Documents

These User Training Documents cover the entire Master Data, Day to Day Transactions and the Month End and Period End Closing Activities for each of the FI-CO Sub Modules laid out above. They come with Step by Step with SAP screen shots & compliment the Configuration Material .

Power Point Presentations

The Power Point Presentations presented are unique. They are not the usual ones you see floating around in the SAP Market. They are tailor made to gel with the Configuration and User Training Documents. They provide Rich Content which you can use to enhance your knowledge and use it in your Blue Printing Phase of Your Project.

Difference Between BW Technical and Functional

In general Functional means, derive the funtional specification from the business requirement document. This job normally is done either by the business analyst or system analyst who has a very good knowledge of the business. In some large organizations there will be a business analyst as well as system analyst.

In any business requirement or need for new reports or queries originates with the business user. This requirement will be recorded after discussion by the business analyst. A system analyst analyses these requirements and generates functional specification document. In the case of BW it could be also called logical design in DATA MODELING.

After review this logical desing will be translated to physical design . This process defines all the required dimensions, key figures, master data, etc.

Once this process is approved and signed off by the requester(users), then conversion of this into practically usable tasks using the SAP BW software. This is called Technical. The whole process of creating an InfoProvider, InfoObjects, InforSources, Source system, etc falls under the Technical domain.

What is the role of consultant has to play if the title is BW administrator? What is his day to day activity and which will be the main focus area for him in which he should be proficient?

BW Administartor - is the person who provides Authorization access to different Roles, Profiles depending upon the requirement.

For eg. There are two groups of people : Group A and Group B.

Group A - Manager

Group B - Developer

Now the Authorization or Access Rights for both the Groups are different.

So for doing this sort of activity.........we required Administrator.

Tips by : Raja Muraly, Rekha

Which one is more in demand in SAP Job, ABAP/4 or BW?

In terms of opportunities a career in SAP BW is sounds better.

ABAP knowledge will help you excel as a BW consultant, so taking the training in ABAP will be worth it.

You can shift to BW coming from either an ABAP or functional consultant background. The advantages of the ABAP background is you will find it easier to understand the technical aspects of BW, such as when you need to create additional transfer structures or if you need to program any conversion routines for the data being uploaded, as well as being familiar with the source tables from SAP R/3.

The advantage of coming from a functional consultant background is the knowledge of the business process. This is important when you're modeling new infocubes. You should be familiar with what kind of data/information your user needs and how they want to view/group the data together.

Will ABAP be Obsolete? Will JAVA Replace ABAP?

You should have heard this rumours more than once.

The story goes like this:

Well the sad news is that SAP is integrating ABAP with JAVA. So in near future ABAP will be obsolete and JAVA will be in. Then the field will be so much populated by java programmers that it will be going to be the
end to ABAPers as JAVApers programmers will be having more value because of their Java experience.
So I think now we should start making move to Jave, at least to fight in the market even if we can't dominate it.

or

Heard some rumours here and there that the eventual plan for SAP is to phrase out ABAP programming? In another word, in a few years time, ABAPers will be redundant. How true is that?? Care to comment ??

or

I have just started my journey into ABAP programming, but I am being discouraged by some people who say, that ABAP is gonna be transitioned out and will be replaced by something else. Just wanted to know how true this is and if I should continue on the track I have taken, cause I dont wanna regret my decision later.

Some response to the above worries :-

This rumours have been around for a couple of years. In the past many programming languages have also become obsolute.
Why waste time worrying about this? I think abapers should spend more times to learn other sap modules to enhance their value.

ABAP can't die because its the easiest development tool . It can be easily seen that if you see development cost ABAP development can be completed in less time as compared to Java. And SAP is not stopping ABAP but just given an option to develop in java. However it will be good for ABAP Developers to learn java.

ABAP is not a replacement for any thing and at the same time no other language is a replacement for ABAP. FYI, ABAP is no more an ABAP/4. It is widely extended with the introduction of Web Application Server starting from release WAS 620.

In Object Oriented Paradigm ABAP is the only langauge that goes very near to all the properties of OOP concepts even comparted to JAVA and C++ starting from release WAS 630. You can developed and extend web applications using ABAP. It is much much more than what we see from R/2 and R/3 3.X releases...

There is nothing to worry about it. Yes SAP is introducing J2EE platform as an alternate to make an implementation faster as in the market there are many JAVA developers compared to ABAP resources.

More than this, ABAP is the SAP proprietary language. Except R/3 kernel, every application/transaction including BASIS is written in ABAP. I don't think SAP is that foolish to replace ABAP with some thing else. Look at the development news in SAP AG official web site for more info. One might need to know Java and JSP for developing mySAP portals but starting from SAP NetWeaver (which is planned to be released officially by the next quarter this year) you can developed
heterogeneous portals using ABAP itself...

Hope the above clarifies how ABAP is moving a head in the programming era.

Role of SAP Consultant In Testing

1. What is the role of SD Consultant in Testing while implementing the project?
2. What is Unit testing and Integration Testing?

Testing : the core team members along with endusers will test whether the postings done in SAP is resulting as per the requirements of the organisation. They will test whether the output documents such as purchase order, invoice document are printed in the required format and showing the correct data.

Unit testing is refer to the module which are going to implement. SD, MM, FICO etc. there will be test script based on that testing will be performed.

Integration testing will be cross the modules. MM-SD-FICO for example. Integration testing is also called SIT ( System integration testing)

Testing mathologies and types: there are 6 types of testings:
1. Unit Testing
2. System Testing
3. System Integration security Testing
4. Performance Testing
5. User Acceptance testing
6. Regression Testing

Unit testing is done in bit and pieces. Like e.g. in SD standard order cycle; we do have 1-create order, then 2-delivery, then 3-transfer order, then 4-PGI and then 5-Invoice. So we will be testing 1,2,3,4 and 5 seperately alone one by one using test cases and test data. We will not be looking and checking/testing any integration between order and delivery; delivery and TO; TO and PGI and then invoice.

Whrereas System testing you will be testing the full cycle with it's integration, and you will be testing using test cases which give a full cyclic test from order to invoice.

Security testing you will be testing different roles and functionalities and will check and signoff.

Performance testing is refered to as how much time / second will take to perform some actions, like e.g. PGI. If BPP defination says 5 seconds for PGI then it should be 5 and not 6 second. Usually it is done using software.

Regression testing is reffered to a test which verfies that some new configuration doesnot adversly impact existing functionality. This will be done on each phase of testing.

User Acceptance Testing: Refers to Customer testing. The UAT will be performed through the execution of predefined business scenarios, which combine various business processes. The user test model is comprised of a sub-set of system integration test cases.

We use different software during testing. Most commonly use are

Test Director: which is used to record requirement, preparing test plan and then recording the progress. We will be incorporating defects that are coming during these testings using different test cases.

Mercury Load Runner: is used for performance testing. This is an automatic tool.

What does the following terms means :
- Technical Unit Testing
- Functional Unit Testing
- IntegrationTesting
- Volume Testing
- Parallel Testing?

Technical Unit Testing= Test of some technical development such as a user exit, custom program, or interface. the test usually consists of a test data set that is processed according to the new program. A successful test only proves the developed code works and that it performed the process as as designed.

Functional Unit Testing= Test of configuration, system settings or a custom development (it may follow the technical unit testing) These usually use actual data or data that is masked but essentially the same as a real data set. A successful test shows that the development or configuration works as designed and the data is accurate as a result.

IntegrationTesting= Testing a process, development or configuration within the context of any other functions that the process, development or functionality will touch or integrate . The test should examine all data involved across all modules and any data indirectly affected. A successful test indicates that the processes work as designed and integrate with other functions without causing any problems in any integrated areas.

Volume Testing= testing a full data set that is either actual or masked to insure that the entire volume does cause system problems such as network transmission problems, system resources issues, or any systemic problem, A successful test indicates that the processes will not slow or crash the system due to a full data set being utilized.

Parallel Testing= Testing the new system or processes with a complete data set while running the same processes in the legacy system. A successful test will show identical results when both the legacy system and new system results are compared.

I would also note that when a new implementation is being done you will want to conduct at least one cut over test from the old system to the new and you should probably do several.

What kind of testings that are carried out in testing server?

1. Individual Testing ( Individually which we've created)
2. Regressive Testing ( Entire Process)
3. Integration Testing ( Along with other integrated modules)

The 3 types of testing is as follows:-

1. Unit testing (where an individual process relevant to a SD or MM etc is tested)

2. Integration testing (where a process is tested that cuts across all areas of SAP).

3. Stress testing (where lots of transactions are run to see if the system can handle the data)

SAP FI Functional Consultant Responsibilities

What is the meaning of SAP FICO Functional and SAP FICO Technical?

SAP FICO Functional means functional knowledge, by which one can proceed in terms of functional process with FICO area as well as FICO configuration knowledge.

Whereas SAP FICO Technical consultant may be an ABAPER, who have short of knowledge of FICO configuration and functional knowledge as well and can proceed for technical jobs e.g. reports development, client requirement, system modification etc.

To become a Pure Hard Core FI functional consultant

Q: Can via T.Code FBL1N by selecting vendor with plant reference in selection using search help field group.

Plant is not a field for finance or in sap it is FI module - this is for PP and MM module, In case required, please define that as FI object for FI reports - like BA and so on. Configure the plant as a BA and in all FI places you can capture BA in line items of vendors.

Spent little time on going through various standard reports of SAP which are very rich in itself - for each report it has options of all fields of master data , all fields of FI document means around in my opinion around 400+ options to select. Hence we should first get an idea of fields in masters and documents and how they are updated.

To become a good consultant.... Every report of SAP standard is a gem - but we always look for FAST FOOD without understanding the quality of how standard is the solutions..

Spent time in understanding - there are lot of chapters available for reading . Suggestions ... Understand the Finance function first upto closing of books and management reportings done in a practical way. Go to sap img screen - you will find all options are there... If you go reverse way , sitting inside the car and asking - anyone can help me in understanding what is the wheel in front of driver used and how to use it??

All the best - take it in the right spirit for a successful future

Report Painter,Relationship between Report Groups and Reports

Subject: Report Painter,Relationship between Report Groups and Reports

Dear Report painter gurus,

What is the relationship between Report Groups and the
Reports assigned to them ? My problem is that, when I leave EMPTY
characteristics in one Report, I cannot Execute ALL other reports
assigned to the same Report Group as the First Report (the report with
the empty characteristics)

So it seems that whatever mistakes I make in one report, affects
ALL the other reports within the same Report Group. Can someone verify
this for me ?

Thanks in advance !

-----Reply Message-----
Subject: RE: Report Painter,Relationship between Report Groups and Reports

I have found that by far the safest way to proceed is to have a one to one
relation ship between a report group and a report. otherwise all sorts of
strange things start to happen.

Cheersy cheers

Report Painter, changing the tables assigned to libraries

Subject: Report Painter, changing the tables assigned to libraries

Dear Report Painter folks,

If I assign the wrong table to a Library, how
do I correct this mistake ?

Regds,

-----Reply Message-----
Subject: RE: Report Painter, changing the tables assigned to libraries

If you just created the Library and assigned an existing table to it, you
can delete the Library using Report Writer, and start over.

-----End of Message-----

Library for Report Painter/Writer

Subject: Library for Report Painter/Writer

Hi Sappers
I just have one question regarding Report Writer/Painter
Is it possible to create new library based on whatever table we want which
is not SAP installed. For exmaple, in PCA, there is standard library
8A2 which si based on GLPCT. Is it possible to create new library based on
table say GLPCA? If so, what's menu path to add table in Library?
I am on 3.1H.

TIA

-----Reply Message-----
Subject: RE: Library for Report Painter/Writer

As consultants always say:
"Do you really want to create reports on table GLPCA?".
All the information is in GLPCT and in addition performance with reporting
on GLPCA would probably be very bad.

I wanted to get period information form PCA. And it looks like GLPCT does
not give records per period (period field is 16 or other value) but only the
cumulative values per period are stored in specific fields. So i thought I
needed a report on GLPCA, but I use libraries based on GLPTC to get the
information from GLPCA. Apparently by selecting periods (RPMAX) in reports,
SAP will show all the GLPCA records for that period, but it will get it from
the summary record in GLPCT. Don't ask me how, but it works.

hope this helps.

Regards,

-----Reply Message-----
Subject: RE: Library for Report Painter/Writer

You should be able to make a dd table available to Report Painter / Writer if you can create an
Evaluation structure for the table.

To create an Eval structure In Logistics:
Tran MCS7 - Create evaluation Structure.
(Path: Logistics >Sales & Distribution >Sales Info System >Flexible Analysis >Evaluation
Structure >Create)

You could name the Eval Structure "ZFGLPCA", (must begin with "ZF").
Then click

( if this is a table and not another Eval structure.)
Enter the DD table "GLPCA". And click the check mark.
Then click and mark all the characteristic fields you want to report on, (if
you right click
you can ), then .
Do the same for
Then generate the Eval structure or

After you created the Eval structure, you can create a library with this Eval structure (table) in it.

GLPCA worked for me. We are on 3.1H P47

Good Luck

-----Reply Message-----
Subject: RE: Library for Report Painter/Writer

The 'tables' that are available for use in Report Painter/Writer are stored in
client-independent table T804A. As far as I know, there is no customizing transaction for this table (at least not in
3.1H).

Please note that the "tables" defined here are not necessarily physical tables; they can also
be 'logical' tables which contain several physical tables, as defined in table T804E (also
client-independent). In your example, the table delivered for PCA report Library 8A2, 'GLPCT' is actually defined in
table T804E to include data from physical tables GLPCT, GLPCA, and GLPCP.

You actually define the Library using transaction GR21/GR22. I have never actually customized a
table definition for use in Report Painter/Writer; but it can be done through tables T804A/T804E.

-----End of Message-----

sap fico Report Painter, How to reverse +/- signs

Subject: Report Painter, How to reverse +/- signs

Dear Report Painter gurus,

I am trying to reverse the +/- signs in my P/L statement, which I
created using Report Painter. Could someone please help me out ?

Regds,

-----Reply Message-----
Subject: Report Painter, How to reverse +/- signs

Try using the Absolute value in your formula as follows:

Ex: (X003 / ABS X002)) * 100, or whatever variables you need to use.

I find that this usually reverses the appropriate signs.

In the report, there is also formatting available that will reverse the
signs.
Do: In Report Writer: Change report screen, (transaction GRR2),
Formatting-->Row-->reverse signs.

However, this will reverse all signs in the statement. You may not want
that.

Try both to see what happens.

Hope this helps.

-----End of Message-----

Cost Component Split In FICO

Can someone brief what is cost component split? What config is to be done?

In addition to standard iteration, price calculation enables you to calculate prices as a cost component split. This means that the output price of an activity type can be split into a maximum of 40 cost components. These cost components represent either:

Individual cost components (such as wages, salaries, or operating supplies) or the costs of complete cost centers (such as energy or maintenance cost centers).

The cost component split enables you to analyze which cost components are contained in the output prices of the activity types.

You can then control cost elements, cost element groups, and also entire cost centers in cost component splits. The corresponding cost center costs and the costs of the cost centers providing the activity are channeled into this cost component split. For example, if you have assigned the salary cost element to component 1 (salaries), then the system displays the salaries (for example, for a production cost center) in this cost component. If a plant maintenance cost center provides services to the production center, then the salaries for the plant maintenance cost center are assigned to this cost component.

Cost center splitting apportions activity independent costs to the activity types of the cost center. It does this by multiplying the total of the activity independent costs by the equivalence number of the activity type, and then dividing by the sum of the equivalence numbers. So if there are two activities, one with equivalence number 1 and the second activity has an eqivalence number of 2, then 1/3 of the activity independent costs will be apportioned to activity one, and 2/3 will be apportioned to activity two.

Activity independent costs are always fixed, so any variable costs will need to be planned as activity dependent costs.

Planned cost center splitting happens automatically when calculating the activity price. You can view what costs will be apportioned during activity price calculation by clicking on the Splitting menu item.

I've ran cost splitting against one cost centre. For this cost centre I know the planned activity rate (per hour) and the planned quantity (in hours) but the target cost calculated for the activity is slightly different to the result of these two multiplied together.

Is this calculation correct please?

Planned act. qty in period @ planned act. rate for period = target costs

If you have only one Activity for the cost center, then you do not need to run splitting. Just run activity price calculation. Splitting is required only if you are allocating the same costs to 2 or more activities.

The calculation is generally right. The other thing to check will be rounding of the time (mins/hours) and value.

sap fico COST CENTER’S

Cost Center’s: Organizational Unit within a controlling area that represents a defined location of cost incurrence. The definition can be based on 1) Functional Requirement, 2) Allocation criteria, 3) Physical location and 4) Responsibilities for cost.

Change Cost center hierarchy - OKEON
Creation of Cost Center - KS01

Distribution: Was created to transfer primary costs from a sender cost center to receiving controlling objects. Distribution is primary cost elements.
Define Distribution - KSV1
Execute “” - KSV5

Assessment: Was created to transfer primary and secondary costs from a sender cost center to receiving controlling objects.
During assessment, the original cost elements are summarized into assessment cost elements (secondary cost element, category=42).

Define Assessment - KSU1
Execute Assessment - KSU5

Activity Types: Categorizes productions and services activities provided by a cost center to the organization and used for allocating costs for internal activities to the originates of the costs.

Creation of Allocation Cost elements - KA06
Creating/Maintaining the Activity types - KL01

Statistical key figures: Are used as the basis (tracing factor) on which to make allocations (assessments & distributions) and to analyze structural key figures.

sap fico COST ELEMENT ACCOUNTING

Cost Elements: Cost Elements Describe the origin of costs. Cost element classifies the organization valuated consumption of production factors within a controlling area.

Primary Cost Elements: These arise through the consumption of productions factors that are sourced externally. Primary cost elements are used for direct posting and must be accompanied in GL a/c’s in FI.

T-code : KA02 : The categories are follows 1) General primary cost element, 03 - Imputed cost element percentage method 4 - Imputed cost element, target = Actual Method, 11- Revenue elements, & 12 - sales deductions.

Secondary Cost Elements: Cost elements arise through the consumption of production factor’s that are provided internally i.e., by enterprise itself. Secondary cost elements are used strictly for internal controlling posting like assessments and settlements. T-code - ka06

Category: 12 - internal settlements, 31 - Result analyses, 41 - overhead’s, 42 - assessments etc. Cost Element Group - kah1

SAP Controlling FAQ

CONTROLLING

Controlling: Controlling provides you with information for management decision-making. If facilitates co-ordination, monitoring and optimization of all process in an organization.

Features of Controlling: Cost Center Accounting, Activity Based Accounting, Internal Orders, Product Costing, & Profitability Analysis.

Controlling Area: Organization unit that represents a closed system Used for accounting purposes.

You can assign one or more company codes to one controlling area.

If you assign more than one company code to one controlling area, then you need to note the following.

1) Consistent Chart of a/c’s (Treat each cost element in all company codes in same way).
2) The Operative fiscal year variants in the company codes must match the fiscal year variant in controlling area.
3) You should execute period end closing in controlling for all company codes at same time.
4) The system only post reconciliation posting across company codes without taxes, which means that it cannot automatically create invoice.
5) Maintain controlling area - OKKP .
6) Maintain no. ranges for controlling documents - KANK
7) Maintain versions - OKEQ

Difference Between Primary and Secondary Cost Element

Explain the difference between primary and secondary cost element? With an example.

Primary cost elements are like materail costs, personnel costs, energy costs... where a corresponding GL account exists in FI..to allow costs to flow...

Secondary cost elements are like production costs, material overheads, production overheads, they can be created and administered in only CO. These are used in internal cost allocation, overhead calculation, settlement transactions., it does not flow to FI...

General - Cost Element
----------------------------------
Basically, cost element are carriers of costs.

Primary Cost Element
--------------------------------
When cost element carriers cost between FI and CO they are called Primary, the link is established GL A/c = Cost element(Primary). A question may arise as to whether all GL accounts are cost element, it again depends upon the business requirement, where COPA is active then revenue account (GL) are also cost elements, where COPA is not active then revenue account (GL) should not be made as an cost element.

Example....
Again cost of goods sold particularly in VAX (make to stock) is not an cost element, where the same COGS in VAY (make to order) is a cost element. Price Difference account should not be made as cost element.

Entry while booking expenses
Travel Expenses A/c - with Cost Centre Dr. Rs.YY
(will be a GL A/c and cost element) - entries flows to CO thru FI
To Cash A/c Cr. Rs.YY

Secondary Cost Element
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When cost element carries cost with in CO, then they are called secondary cost element.

Example.... - Take Product Costing
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On manufacture of the goods the cost of the above product (production order) is arrived at accumulating material cost + operational cost + overheads (%), additive cost if any.

The cost of operation is accumulated in cost centre be it production / production service / service cost centres, while booking FI entries.

Those operational cost has to be allocated to production order based on operational activities carried on and its cost involved in it. Those operation activities in CO are termed as activity types and has to link the same in KP26 with rates and cost centre (ie., sender cost centre and receiver production order).

In order to find the production order cost, the allocation of cost from sender cost centre to production order for the operational activities carried on and its cost associated with it, have to be loaded, hence in CO the cost centre allocate that portion of operational cost to production order, and this cost is carried by a cost element (since there are no FI involvement and entries are flowing within CO by crediting sender cost centre and debiting receiver production order a cost element has to be created.... say "Operational Cost - Activity" the entry will be

Operational Cost - Activity (Production Order) Dr Rs.XX
To Operational Cost - Activity (Cost Centre) Cr Rs.XX
The entries are with in CO. And the cost element created is secondary since it does not has an link with GL Account in FI correspondingly.

In CO the production order and cost centre are co object including but not limited to.

Requires an Assignment to a CO Object

The first time Account 820290 was only created in FI as a primary expense. After that this account was created in CO too as a secondary expense and any posting will appear an error: Account 820290 requires an assignment to a CO object

Question : How to correct this account back to FI only and not to appear in co?

Note :
Account 820290 requires an assignment to a CO object
Message no. KI 235

Diagnosis
You have not defined a CO account assignment for an account that is relevant to cost accounting.

System Response
Account 820290 is defined as a cost element.
This means that you must always specify a CO account assignment.

Procedure
Enter one of the following CO account assignments

Order
Cost center / cost center/ activity type
Sales order item (for a project or cost relevant)
Project / WBS element
Cost object (Process manufacturing)
Network/ Network activities
Business process
Profitability segment
Real estate object
The posting row affected is 000, account 820290.

First, if G/L account was created in FI, you can only create primary cost element in CO.

Secondary cost element can only be created if no account exists in FI.

Second, if you created the primary or secondary cost element in CO, you have to assign CO account assignment.

You can delete cost element in CO (KO04) if dependent objects found.

Third, when you create cost element in CO, documents would be also created in ‘Cost center accounting’ and ‘Profit center accounting’ when posing in FI. If no cost element exists in CO, no related documents would be created in CCA and PCA.

How does one Deactivate a Cost Center

How does one Deactivate a Cost Center?

I can find a tcode to Activate an Inactive one but how do I deactivate a CC. Or is it so simple I cannot see it...

Marios

Go to KS02- Change Cost Center. Go to the Control Tab. Tick on the checkbox for desired transaction activity you want to lock. Any postings made against the cost center under locked activity/ies will not be allowed.

Tiongco, Jezel D.

Thank you, I knew I could block the postings but I want to somehow make the Cost Center Look Inactive.

To explain:
In transaction OKEON (Change Standard Hierarchy) I have Green Dots for Active CC's. The legend (attached) says a Red Dot is for Inactive CC's.

How do you do that?

Marios

Hi Marios, If you want to change the status to inactive, the only optioin as far as my knowledge is concerned is to change the validity period. when you double click the cost centre, details of cost centre will be displayed at the bottom by T code OKEON and you will find the status of cost centre there, just right of that you will find button to change the validity period, change the period to some future date then it turns to inactive status.

Kittu

Excellent! It works.

Thank you very much.

I had changed the Validity Period before but I set it to start right where the previous time horizon ended so looking in the future this was always active.

What is Production Order Settlement?

Settlement is nothing but offsetting the costs to the FI portion. CO objects carry costs, which needs to be re-assignd to the G/L accounts where it comes from.

CO never generates any data, it only tracks the same onto some objects which are analysed for definite purpose of tracking the resources which are debits in FI as costs in G/L).

In simple words, the flow is like following -

1. Direct Costs are incurred ( like material consuption ) in form of issues to prod orders. These are captured in G/L. Whenever you issue, consumption account is debited. But are also debited to prod order as

Consumption...Dr
Inventory.......Cr

2. Indirect costs are incurred in form of debits to Cost centers in G/Ls. These are actually to be allocated & absorbed in Products via Prod Orders. So it is allocated to prod orders via diff media like costing sheet or Indirect activity allocations.
Here again Prod order is debited with some amount.

When the costs are incurred these should be transffered futher when the order is closed or deliverd to stock.
So whenever you deliver the order, the follwing entry is generated-

Inventory....Dr
Cost of Prod /Mfg Variance.....Cr

If your Fin Goods' predetermined cost are same as that of actual costs incurred, there will no price difference account affected. But when your plan cost ( target cost ) & actual costs are differnet, the difference is OFFSET or SETTELLED
to price diff accout as-

Cost of Prod / Mfg Var....Dr
Price diff acc..........Cr

Note that Price diff accont is not created as COST ELEMENT.

If actual cost is less than target cost, entry would be reverse.

Populating Transaction Type during Order Settlement

You have an internal order that you want to settle to a balance sheet account. This accounts field status makes the transaction type (BSEG-BEWAR) required. During settlement you receive error message F5 808 stating that this field is status initial but the field is required. This field is not available to you in the settlement rule definition. Is it possible that this field is suppressed? You could not locate a means to display or require it if so. You attempted to resolve this using a substitution that would popluate the transaction type field. However, during execution you did not hit the breakpoint you put into the user exit. How to overcome this issue?

You can change the requirement of the field in the "Field Status" of the account (Financial Accounting -> General Ledger Accounting -> Business Transaction -> G/L Account Posting -> Carry Out and Check Documents Settings -> Maintain Field Status Variants)

or

In transaction OB41 where you define posting keys and its "Field status". Both "Field Status" are maybe differents, but if in one of them the field is like "required entry" you have to change it. But if you are posting a fixed asset account, you will need this field completed because it defines the movement you are making.

Difference between Cost Centers and Internal Orders

Would any one please tell me that
1. What is the basic difference between Cost Centers and Internal orders?
2. I understand that their functionality is same like assessments, distribution etc. then why there are divided into Cost Centers and Internal orders?
3. How the data flows from Cost Centers and Internal Orders? ie is it first into Internal orders then to Cost Centers or Vice versa? or else the data is maintained independently?
4. Does settlement means running the Assessment cycle and distibuting the costs to various cost centers from an internal order?
5. How you determine the cost of an Order or cost for an order? ie how an Cost in Order is determined?

A cost center as you will know is for fixed reporting for a long time span as part of your company structure (cost center usually = department or work center).

An internal order is used to accumulate cost for a specific project or task for a specific time period. An internal order is therefore used for a short period with a specific deadline.

Your internal order will usually settle to cost centers (and not visa versa) according to the settlement rule in the order setup.

An internal order can therefore be used to group all the expenses incurred to plan and hold a conference over a 3 month period. The order can be settled on a monthly basis to cost centers.

When the conference is finished the order can be settled finally. The cost of the conference will then be spread over 2 or more cost centers, but can be viewed in total on the internal order when needed.

It is important to understand the difference between a settlement and an assessment cycle. An assessment cycle distributes costs from one cost center to various other cost centers. You cannot assess from a cost center to an internal order nor visa versa. Assessment cycles are only between cost centers.

Settlements are used for orders. In the setup of each order is a "settlement rule". In this settlement rule you tell the system to which cost centers the cost in the order must be settled.
Typically, you will execute the following procedure at month-ends:
1. Settle all orders - this will settle all costs on orders to cost centers.
2. Run assessment cycles - Now that you have al costs against cost centers from your orders, you can start distributing costs between cost centers with assessments.

Costs are posted to an order. When you process a purchase order you post to the internal order and not to a cost center. The same applies to journals in FI. You will post the costs to the order and not to a cost center. You will then settle the order on month-ends to post to the relevant cost centers. It is very important to settle these orders otherwise FI and CO will not
balance on your system.

Internal orders can also be used as "statistical" orders. This is also specified in the setup of the order. You do not have to settle statistical orders. When posting costs, you will post to the cost center and the order simultaneously. Both have to be specified when posting journals or purchase orders against statistical orders.

Simple Overview of Product Costing

SAP Product Costing deals with Plan Costing + Actual Costing of Finish products or Services.

CO comprises Product Costing + cost accounting integrated with FI.

It uses Integrated Cost Accounting.

Product costing also has 2 phases depending on the Mfg Scenarios. If you are a normal mfg comp, making goods to stock & sale, you have to first do planning of the costs of products initilally as a STD COST of a product. This is used in many phases in SAP CO acounting. In simple terms, you cost a product by different methods depending on different LIFE CYCLE phases of product. These are Development of new product. Growth stage by modifying it. Mature stage (mass prod). Decline Retirement of that product from Mfg+Mktng)

The whole CO process starts with this PLANNED costs of products & ends with totalling the STD Costs for Actual Production.

This is a simple Std cost Accounting system, in which the end result is calculating Variance bet Planned & Actual & analysing those for further corrective actions.

Product costing is well integrated to FI, but only where overhead cost accounting is used. Otherwise normally it used only for settlement.

All these actual costs of Prod are finally settled/offset to FI or Profitability segments.

SAP CO is a very vast & complicated module of all. It needs deep understanding of the subject.

This give you an overview glimpse of SAP CO.

Using 1099 MISC Reporting

In order to use 1099 MISC reporting is something that needs to be configured or set up in the vendor master records? I am trying to run the report and I don't get anything.

To flag a vendor in SAP as a 1099 vendor, two fields need to be populated.

1. On the Control screen of the vendor master, populate either "Tax Code 1" field with his social security number if his social security number is his tax id. or "Tax Code 2" field with his corporate tax id. if he has been issued a corporate tax id. Input either of the two in their correct format i.e. social security as xxx-xx-xxxx or corporate id as xx-xxxxxxx.

2. On the Accounting Info. screen, populate the "W.tax code" field under the "Withholding Tax" box with the value "07" if it is a US vendor or "42" if it is a foreign vendor.

These are the two fields that specify a vendor as being a 1099 vendor.

Any posts done before this changes were implemented will not show on 1099.

You will need to run program RFWT0020 to flag 1099 items retroactively.

...and/or you can change the "Document Change rules" for BSEG-QSSHB and BESG-QSSKZ for account type "K" so that you can change the Withholding tax code after the line item has been cleared (i.e. after entering the required information in the vendor master record as the user above has recommended) (Refer to OSS Note: 363650).

But if you use MIRO to post invoices, you might want to look at Note 482245 too...

In SAP v40b, the new 1099 report is RFW1099M. It is a neat report since it merges all the three reports that are listed in the AP info system under the withholding tax.

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In my system the witholding tax code field shows only one option Y (back-Up Witholding) instead of 7 and 42. ALso it gives me message "Extended witholding tax functionality is not active".
Do I miss some settings on the global level, or I just need to update the vendor master records?

We are on 40b. If you do not have any w.tax code, you can create them in Tcode OBC7. But I have seen standard w.tax code on this screen provided by SAP. Pl. note that you may only be able to see the w.tax code on the vendor master if you are in change mode. For some unknown reason, when you are in display mode, SAP tells you that there are no w.tax codes.

The first report in 4.0b gives all the correct 1099 vendor numbers as well as the error list of incorrect vendor numbers.

The second report gives all the 1099 line items by vendor posted during the year.

The third report lets you print the actual form for IRS/vendors and also lets you send the file electronically to IRS.

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You mentioned running RFWT0020 - what exactly does this do? I have the same problem that our A/P staff did not update some vendors with the appropriate 1099 data. Now we are getting the data needed - I usually have someone in our IT dept. create a spool manually for those vendors. Will the program above update our vendors' transactions with 1099 info (assuming the vendor master has been updated)?

Yes. This report flags all the past vendor line items as 1099 items retroactively. FYI, we're on 4.0b. One thing that is peculiar about this report is that on the selection screen, you need to put 00000000 to zzzzzzzzz in the vendor number field otherwise it does not flag any records (at least that's what it did with our records).