SAP Internal Order Configuration steps

Define Order types
   

 Define Model orders
   

 Maintain Allocation structure
   

 Maintain Settlement profile
   

 Maintain number range for settlement documents

SAP Product Costing Configuration steps

 Configuring the Costing  sheet for calculating overhead
  

 Configuring the Cost component structure
   

 Configuring the costing variant
   

 Configuration for mixed costing
   

 Configuration for joint product
   

 Configuration for Work in Process calculation
   

 Configuration for Variance calculation
   

 Configuration for settlement of variance
   

 Configuration for Product cost by period  - product cost collector and setting up of variance calculation
   

  Configuration for Product cost by sales order

SAP Profit Center Configuration

 Maintain the profit center settings for Controlling area
  

 Creation of dummy profit center
   

 Creation of Standard hierarchy and creation of profit center master
   

 Configuring the transfer price settings
   

 Profit center planning configuration
   

 Configuring Distribution and Assessment cycle
   

 Configuring the 3KEH table (Balance sheet and profit and loss accounts)

SAP Profitability Analysis Configuration

Creating Characteristics and value fields
  

 Configuring the Operating concern
   

 Copying an Operating concern from an existing operating concern
   

 Maintain Characteristic values, defining characteristics hierarchy
   

 Defining Characteristic derivation
   

 Defining keys for accessing material cost estimate and assigning costing key to characteristics
   

 Planning configuration
   

 Maintaining value field groups
   

 Configuration for value flow from SD to PA
   

 Configuration for value flow form FI to PA
   

 Configuration for settlement of  Product costing variance to PA
   

 Creation of Profitability report
   

 Transporting customizing settings

SAP Cost Center Configuration

Configuring the Controlling area
  

 Maintaining versions in Controlling area
   

 Configuring multiple valuation approaches/ Transfer prices
   

 Cost element accounting set up
   

 Reconciliation ledger configuration
   

 Setting Cost center Hierarchy, cost center master data, activity types
   

 Cost center planning which includes creating planner profile, creating planning layout
   

 Configuring various cycles such as Distribution. Assessment, Indirect Activity allocation
   

 Configuring Splitting structure
   

 Configuring Automatic account assignment (OKB9)

SAP Special Purpose Ledger configuration

Define Table Group
  

 Maintain Fiscal Year Variant
   

 Maintain Ledgers
   

 Maintain Local Posting Periods
   

 Maintain Actual Versions
   

 Maintain Valid Document types
   

 Maintain local number ranges
   

 Perform Diagnosis
   

 Entering an FI-SL document
   

 Define Libraries
   

 Define Report Painter Reports

SAP Asset Configuration (based on New GL)

    With the introduction of  SAP New GL  there is no longer a need to maintain different GL codes for different depreciation areas. The only requirement is to maintain for each reporting 2 additional depreciation areas i.e. one real depreciation area and second derived depreciation
     Configure Depreciation as above
       

     Assign target ledger group to the respective depreciation areas
       

     Wizard to set up Parallel Valuation.

SAP Asset Configuration

 Copying Chart of Depreciation
  

 Define Asset Classes
   

 Configuring account determination for Assets (Integration of Asset with GL)
   

 Deactivate Asset class for Chart of depreciation
   

 Configuring posting of depreciation
   

 Configuring the depreciation key
   

 Configuring asset classes for group assets
   

 Define/Assign Settlement profile
   

 Legacy Asset data transfer

SAP AR & AP configuration

Define Account Groups for Customers and Vendors
  

 Define Accounting clerk
   

 Delete Customer and Vendor Master data
   

 Configuring Payment terms
   

 Configuring various automatic account determination
   

 Defining Tolerances
   

 Configuring Automatic Payment Program
   

 Special GL configuration for down payments from customer and vendors
   

 Configure  regrouping of Customers & vendors per remaining terms of receivables & payables
   

 Dunning
   

 Configuring calculation of Interest on arrears

SAP Bank Configuration

 Define House Banks
  

 Electronic and Manual Bank statement configuration
  

 Check Deposit configuration
  

 Configuring Cash Journal

SAP Cost of Sales Accounting configuration

Cost of Sales accounting needs to be implemented in a manner which makes it more powerful to reconcile the FI and CO module and enable to do a fast close of month end activities.

This functionality needs to be implemented to find out balance on the following:-

	Process/Production orders not settled.
	Networks/WBS not settled
	Internal orders not settled.
	Plant Maintenance orders not settled.

SAP Actual Costing & Material Ledger Configuration steps

 Configuring Material Ledger for Plants
  

 Configuring dynamic price changes
   

 Defining and assigning the material ledger update structure to plants
   

 Configuration of Actual costing and activation of actual cost component split
   

 Production start up activities in Material Ledger

SAP New GL configuration

 Define Ledgers for GL
  

 Define Currencies for Leading Ledger
  

 Define and Activate Non-Leading Ledger
  

 Assign Scenarios and Customer Fields to Ledgers
  

 Define Ledger Group
  

 Activate New GL Accounting
  

 Define Accounting principles and assign to ledger groups
  

 Define Variants for Real-time integration and assign to company code
  

 Define document number ranges for GL view (posting only to specific Ledger)
  

 Define document types for posting only to non leading ledgers
  

 Configuring document splitting
  

 Assigning Default profit center to accounts
  

 Define Worklist for exchange rate entry
  

 Assign Exchange rate to worklist
  

 Configuring Assessment and distribution in New GL
  

 Deactivate update of Classic GL

SAP GL configuration

Company Code configuration

Standard Line item text configuration

Complete GL configuration, defining chart of accounts, defining retained  earnings account

	Validation & Substitution
	Parallel currencies configuration
	Taxes on Sales Purchase configuration
	GL Automatic clearing configuration
	Foreign currency valuation configuration
	GR/IR Regrouping configuration
	Financial Statement version configuration (Creating Balance sheet and Profit and Loss account)
	FI - MM account determination configuration
	FI - SD account determination configuration

SAP FI Module Integration Points

What are some of the integration points of the FI module?

SAP is marketed as a fully integrated system, therefore knowing some of the integration points enables the Users to better understand the Modules.

· Organization units are not only defined in FI(Financial Accounting) but also in other SAP Modules. The SD( Sales & Distribution) Module requires the set-up of Sales Organizations, Distribution Channels and Divisions ; Purchasing requires purchasing organizations, plants, and storage locations; and CO (Controlling) requires a Controlling area to be defined.

· To transfer data between FI(Financial Accounting) and CO (controlling) as well as other modules, a Company Code must be assigned to each of the Modules.

· Business Areas must be entered when generating business transactions if you would like visibility of those transactions impacting a certain BA(Business Area). You can also update your Master Records to include BA(Business Area) for example Cost Center.

· Document postings are automatically posted in the year and periods that you created in the Fiscal Year variant set-ups based on the month, start and end dates to which postings are allowed within a given period as defined.

· There are several integration points in SAP, the above lists a few .

We hope you have enjoyed reading this tutorial.

SAP FI Module More Configuration

More FI configuration considerations:

Business Area, COA, GL, Fiscal year and Currencies

Business Area is optional and is equivalent to a specific area of responsibility within your company or business segment. BA (Business Area) also allows for internal and external reporting.

Another configuration requirement for set-up in SAP are the Basic settings consisting of the following:

• Chart of Accounts(COA)
• Fiscal Year Variants.
• Currencies

The COA(Chart of Accounts) lists all General Ledger accounts that are used by the organization. It is assigned in configuration to each company code and allows for daily General Ledger postings.

The General Ledger accounts are made up of such data as account number, company code, a description of the account , classification of whether the account is a P & L Statement Account or a Balance Sheet Account.

• Control data of the GL Account is where currency is specified, Tax category (posting without tax allowed) , marking the account as a reconciliation account ( e.g. Customer, Asset, Vendors, Accounts Receivable) or not.
• Marking the G/L Account as a “reconciliation” account allows for postings to an Asset Account ( for example) as well as automatic update to the G/L Account.
• Configuration prevents direct postings to reconciliation accounts thereby assisting in maintaining integrity of the data.
• This allows reconciliation between the sub-ledger and general ledger to always be guaranteed.
• Within the General Ledger control data , you can also designate whether line item display is possible in the account. The system then stores an entry per line in an index table which links back to the account. (Display of line item details are then available for reporting purposes ,etc.)
• Open Item Indicators can be set on the G/L Account allowing for better management of open items. Examples include: Bank Clearing Accounts, GR/IR Clearing Accounts, Payroll, etc.

Fiscal Year configuration is a must and can be defined to meet your company’s reporting periods whether Fiscal (any period combination that is not calendar) or Calendar( Jan-Dec).

• Posting Periods are defined and assigned to the Fiscal Year.
• Within the periods you specify start dates and finished dates.
• SAP allows for 12 posting periods along with specially defined periods that can be used for year-end financial closing.

Currencies are another basic configuration setting requirement which defines your company’s legal means of payment by country.

• It is recommended that all Currency set-ups in SAP follow the ISO Standards.
• The ISO Standards ensure Global conformity across businesses worldwide utilizing SAP.

SAP FI Module Configuration

Primary configuration considerations:

Client, company and company code

Once a business has decided to use the SAP FI(Financial Accounting) Module, there are several Configurations prerequisite steps that must be completed.Determining the organizational structure is one of the first steps in setting up the business functions in SAP as well as your reporting requirements.

The Organizational structure is created by defining the organizational units consisting of the following:

• Client
• Company
• Company Code
• Business Area

A Client is the highest unit within an SAP system and contains Master records and Tables. Data entered at this level are valid for all company code data and organizational structures allowing for data consistency. User access and authorizations are assigned to each client created. Users must specify which client they are working in at the point of logon to the SAP system.

A Company is the unit to which your financial statements are created and can have one to many company codes assigned to it. A company is equivalent to your legal business organization. Consolidated financial statements are based on the company’s financial statements. Companies are defined in configuration and assigned to company codes. Each company code must use the same COA( Chart of Accounts) and Fiscal Year. Also note that local currency for the company can be different.

Company Codes are the smallest unit within your organizational structure and is used for internal and external reporting purposes. Company Codes are not optional within SAP and are required to be defined. Financial transactions are viewed at the company code level. Company Codes can be created for any business organization whether national or international. It is recommended that once a Company Code has been defined in Configuration with all the required settings then other company codes later created should be copied from the existing company code. You can then make changes as needed. This reduces repetitive input of information that does not change from company code to company code as well as eliminate the possibility of missed data input.

When defining company codes, the following key areas must be updated:

• Company Code Key- identifies the company code and consists of four alpha-numeric characters. Master data and business transactions are created by this key.

• Company Code Name- identifies the name of the business organization within your organizational structure.

• Address- identifies the street address, city, state, zip code for the company code created. This information is also used on correspondence and reports.

• Country- identifies the country to which your business is based. Country codes within SAP are based on ISO Standards.

• Country currency- identifies the local currency for the company code that you have defined.

• Language- identifies the language to be used for you company code and is also used for text in your documents. SAP unlike other applications, offers over thirty languages including EN( English) , ES (Spanish), FR (French), DE (German), EL (Greek), IT(Italian), AR( Arabic), ZH (Chinese) , SV (Swedish) , and JA (Japanese) to name a few.