In payment term configuration what are the options available for setting a default baseline date?

There are 4 options available:-
1) No default
2) Posting date
3) Document date
4) Entry date

How are input and output taxes taken care of in SAP?

A tax procedure is defined for each country and tax codes are defined within this. There is flexibility to either expense out the Tax amounts or Capitalize the same to Stocks.

Will this advance amount be considered for credit check?

There is an advance given by the customer which lies in a special GL account indicator A. Will this advance amount be considered for credit check?
It depends on the configuration setting in the special GL indicator A. If the “Relevant to credit limit” indicator is switched on in the Special GL indicator A the advances will be relevant for credit check, otherwise it will not be relevant.

What is the impact on the old balance when the reconciliation account in the vendor master is changed?

What is the impact on the old balance when the reconciliation account in the vendor master is changed?
Any change you make to the reconciliation account is prospective and not retrospective. The old items and balances do not reflect the new account only the new transactions reflect the account.

‘Automatic postings’ in SAP for the specific G/L accounts in SAP FICO

What is the accounting entry in the Financial books of accounts when the goods are received in unrestricted use stock?
Also mention the settings to be done in the ‘Automatic postings’ in SAP for the specific G/L accounts.
On receipt of the goods in unrestricted-use stock, the Inventory account  is debited and the GR/IR account gets credited. In customization, in the automatic postings, the Inventory G/L account is assigned to the
Transaction event key BSX and the GR/IR account is assigned to the Transaction event key WRX.

What is a Financial Statement Version?

A FSV (Financial Statement Version) is a reporting tool and can be used to depict the manner in which the financial accounts like Profit and Loss Account and Balance Sheet needs to be extracted from SAP. It is freely definable and multiple FSV's can be defined for generating the output for various external agencies like Banks and other Statutory authorities.

Can we change the reconciliation account in the vendor master?

Yes. Reconciliation account can be changed in the vendor master provided that the authority to change has been configured. Normally we should not change the reconciliation account.

How are Tolerances for Invoice verification defined?

The following are instances of tolerances that can be defined for Logistic
Invoice Verification.
c. Small Differences
d. Moving Average Price variances
e. Quantity variances
f. Price variances
Based on the client requirement, the transaction can be “Blocked” or
Posted with a “Warning” in the event of the Tolerances being exceeded.
Tolerances are nothing but the differences between invoice amount and
payment amount or differences between goods receipt amount and
invoice amount which is acceptable to the client.

What is the purpose of a “Document type” in SAP?

A Document type is specified at the Header level during transaction entry and serves the following purposes:

· It defines the Number range for documents
· It controls the type of accounts that can be posted to eg Assets, Vendor, Customer, Normal GL account
· Document type to be used for reversal of entries
· Whether it can be used only for Batch input sessions Document Type is created for differentiating business transactions. Eg Vendor Invoice, Credit Memo, Accrual Entries,Customer Invoice. It is a two digit character.

Explain the entire process of Invoice verification from GR to Invoice verification in SAP with accounting entries?

These are the following steps:
A goods receipt in SAP for a purchased material is prepared referring a purchase order.
When the goods receipt is posted in SAP the accounting entry passed is:- Inventory account Debit

GR/IR account credit
A GR/IR (which is Goods receipt/Invoice receipt) is a provision account which provides for the liability for the purchase. The rates for the valuation of the material are picked up from the purchase order.

When the invoice is booked in the system through Logistics invoice
verification the entry passed is as follows:-
GR/IR account debit
Vendor credit

What is a field status group?

Field status groups control the fields which come up when the user does the transactions. There are three options for field selection. They are:

Display only
Suppressed
Mandatory

So basically you can have any field either for display only or you can totally suppress it or make it mandatory.
The field status group is stored in the FI GL Master Record.

Which is the payment term which actually gets defaulted in transaction

Which is the payment term which actually gets defaulted in transaction (accounting view or purchasing view)?

The payment term in the accounting view of the vendor master comes into picture if the transaction originates from the FI module. If an FI invoice is posted (FB60) to the Vendor, then the payment terms is defaulted from the accounting view of the vendor master. The payment term in the purchasing view of the vendor master comes into picture if the transaction originates from the MM module. A purchase order is created in the MM module. The payment terms are defaulted in the purchase order from the purchasing view of the vendor master.

moving average price of the material in the material master in SAP FICO

If the answer to the above question is ‘Yes’, then list the scenario in which the moving average price of the material in the material master changes when the goods are issued.
The moving average price in the material master changes in the scenario of Split Valuation which is sometimes used by many organizations. If the material is subject to split valuation, the material is managed as Several
partial stocks and each partial stock is valuated separately. In split valuation, the material with valuation header record will have ‘v’ moving average price. This is where the individual stocks of a material are managed cumulatively. Here two valuation types are created, one valuation type can have ‘v’ (MAP) and the other valuation type can have ‘s’(standard price).
In this case, whenever the goods are issued from the respective valuation types, always the MAP for the valuation header changes.

Where are Payment terms for vendor master maintained?

Where are Payment terms for vendor master maintained?
Payment terms for Vendor master can be maintained at two places i.e. in the accounting view and the purchasing view.

Which is the payment term which actually gets defaulted when the transaction is posted for the customer

Which is the payment term which actually gets defaulted when the transaction is posted for the customer (accounting view or the sales view)?
The payment term in the accounting view of the customer master comes into picture if the transaction originates from the FI module. If an FI invoice is posted (FB70) to the customer, then the payment terms is defaulted from the accounting view of the customer master.
The payment term in the sales view of the customer master comes into picture if the transaction originates from the SD module. A sales order is created in the SD module. The payment terms are defaulted in the sales order from the sales view of the customer master.

material master during issue of the stock assuming in SAP FICO?

Does the moving average price change in the material master during issue of the stock assuming that the price control for the material is Moving Average?
The moving average price in the case of goods issue remains unchanged. Goods issue are always valuated at the current moving average price. It is only in goods receipt that the moving average price might change. A
goods issue only reduces the total quantity and the total value in relation to the price and the moving price remains unchanged. Also read the next question to learn more about this topic.

Where are Payment terms for customer master maintained?

Payment terms for customer master can be maintained at two places i.e. in the accounting view and the sales view of the vendor master record.

What is a Account group and where is it used?

An Account group controls the data that needs to be entered at the time of creation of a master record. Account groups exist for the definition of a GL account, Vendor and Customer master. It basically controls the fields which pop up during master data creation in SAP.

Valuation class in the material master in SAP

Can we change the valuation class in the material master once it is assigned?
Once a material is assigned to a valuation class in the material master record, we can change it only if the stocks for that material are nil. If the stock exists for that material, then we cannot change the valuation class. In such a case, if the stock exists, we have to transfer the stocks or issue the stocks and make the stock nil for the  specific valuation class. Then only we will be able to change the valuation class.

Where do you attach the check payment form?

Where do you attach the check payment form?
It is attached to the payment method per company code.

How do you configure the automatic payment program?

The following are the steps for configuring the automatic payment program:-
Step 1 Set up the following:
Co. code for Payment transaction
Define sending and paying company code.
Tolerance days for payable
Minimum % for cash discount
Maximum cash discount
Special GL transactions to be paid

Step 2 Set up the following:
Paying company code for payment transaction
Minimum amount for outgoing payment
No exchange rate diff
Separate payment for each ref
Bill/exch payment
Form for payment advice


Step 3 Set up the following:
Payment method per country
Whether Outgoing payment
Check or bank transfer or B/E
Whether allowed for personnel payment
Required master data
Doc types
Payment medium programs
Currencies allowed


Step 4 Set up the following:
Payment method per company code for payment transactions
Set up per payment method and co. code
The minimum and maximum amount.
Whether payment per due day
Bank optimization by bank group or by postal code or no
optimization
Whether Foreign currency allowed
Customer/Vendor bank abroad allowed
Attach the payment form check
Whether payment advice required



Step 5 Set up the following:
Bank Determination for Payment Transactions
Rank the house banks as per the following
Payment method, currency and give them ranking nos
Set up house bank sub account (GL code)
Available amounts for each bank
House bank, account id, currency, available amount
Value date specification

examples of GL accounts that should be posted automatically through the system and how is this defined in the system.

Stock and Consumption accounts are instances of GL accounts that should be automatically posted . In the GL account master record, a check box exists wherein the automatic posting option is selected called “ Post Automatically Only”

How are Vendor Invoice payments made?

Vendor payments can be made in the following manner:
Manual payments without the use of any output medium like cheques etc.
Automatic Payment program through cheques, Wire transfers, DME etc.

What is Valuation Class in SAP?

The Valuation Class in the Accounting 1 View in Material Master is the main link between Material Master and Finance. This Valuation Class along with the combination of the transaction keys (BSX,WRX,GBB,PRD ) defined above determine the GL account during posting. We can group together different materials with similar properties by valuation class. Eg Raw material,Finsihed Goods, Semi Finished
We can define the following assignments in customizing :
All materials with same material type are assigned to just one valuation class.
Different materials with the same material type can be assigned to different valuation classes.
Materials with different material types are assigned to a single valuation class.

what level are the customer and vendor codes stored in SAP?

At what level are the customer and vendor codes stored in SAP?
The customer and vendor code are at the client level. That means any company code can use the customer and vendor code by extending the company code view.

What is Valuation and Account assignment in SAP?

What is Valuation and Account assignment in SAP?
This is actually the link between Materials Management and Finance. The valuation in SAP can be at the plant level or the company code level. If you define valuation at the plant level then you can have different prices for the same material in the various plants. If you keep it at the company code level you can have only price across all plants. Valuation also involves the Price Control .Each material is assigned to a material type in Materials Management and every material is valuated either in Moving Average Price or Standard Price in SAP. These are the two types of price control available.

If there are two company codes with different chart of accounts how can you consolidate their activities?

In this case you either need to write an ABAP program or you need to implement the Special Consolidation Module of SAP. If both the company codes use the same chart of accounts then standard SAP reports give you the consolidated figure.

Can posting period variant be assigned to more than 1 company code?

Can posting period variant be assigned to more than 1 company code?
Yes. Posting period variant can be assigned to more than one company code.

How do you keep the FI posting period open only for certain GL codes?

In transaction code OB52 click on new entries and maintain an interval or a single GL code for the account type S with the posting period variant. If the GL codes are not in sequence then you need to maintain further entries for the posting period variant and account type S.

Is it possible to keep the FI posting period open only for certain GL codes?

Is it possible to keep the FI posting period open only for certain GL codes?
Yes. It is possible to keep open the FI posting period only for certain GL codes.

Do you require to configure additional ledger for parallel currencies?

Where only 2 currencies are configured (Company code currency and a parallel currency) there is no need for an additional ledger. In case the third parallel currency is also configured and if it is different than the second currency type, you would then need to configure additional ledger.

How many currencies can be configured for a company code?

A company code can have 3 currencies in total. They are local currency ie company code currency) and 2 parallel currencies. This gives the company the flexibility to report in the different currencies.

Is it possible to generate a financial statement form automatically?

Is it possible to generate a financial statement form automatically?
Yes. It is possible to generate a form automatically.

What is a year dependent fiscal year variant ?

In a year dependent fiscal year variant the number of days in a month are not as per the calendar month. Let us take an example:- For the year 2005 the period January ends on 29th, Feb ends on 27th, March ends on
29. For the year 2006 January ends on 30th, Feb ends on 26th, March ends on 30th. This is applicable to many countries especially USA. Ever year this fiscal year variant needs to be configured in such a case

How do you configure the SAPscript form financial statement version?

It is possible to generate a form from the financial statement version and print the financial statements on a SAPscript form. In the customizing for financial statement version select the FSV you created and choose Goto
à Generate form à One column or Two column form. You can also copy form from the standard system.

Is it possible to print the financial statement version on a SAPscript form?

Is it possible to print the financial statement version on a SAPscript form?
Yes. It is possible to print the financial statement version on a SAPscript form.

What are the options in SAP when it comes to Fiscal years?

Fiscal year is nothing but the way financial data is stored in the system.SAP provides you with the combination of 12 normal periods and also four special periods. These periods are stored in what is called the fiscal year variant.
There are two types of Fiscal Year Variant
· Calendar Year – e.g. Jan-Dec
· Year Dependent Fiscal Year .

What are the functionalities available in the financial statement version?

In the financial statement version the most important functionality available is the debit credit shift. This is more important in case of  Bank overdraft accounts which can have a debit balance or a credit balance. Thus in case of a debit balance you would require the overdraft account to be shown on the Asset side. In case of credit balance you would require the account to be shown on the Liability side.