How do you configure FI-SD account determination?

How do you configure FI-SD account determination?
The FI-SD account determination happens through an access sequence.
The system goes about finding accounts from more specific criteria to less specific criteria.
This is the sequence it would follow:
1) It will first access and look for the combination of Customer accounts assignment grp/ Material account assignment grp/ Account key.
2) If it does not find the accounts for the first combination it will look for Customer account assignment grp and account key combination.
3) Furthermore, if it does not find accounts for the first 2 criteria’s then it will look for Material account  assignment grp/Account key


4) If it does not find accounts for the all earlier criteria’s then finally it will look for Account key and assign the GL code. Thus posting of Sales Invoices into FI are effected on the basis of a combination of Sales organization, Account type, or Customer and Material Account assignment groups and following are the options available.
a. Customer AAG/Material AAG/Account type
b. Material AAG/Account type
c. Customer AAG/Account type
For each of this option you can define a Gl account. Thus the system uses this gl account to automatically pass the entries.

procedure in SAP for Initial stock uploading

What is the procedure in SAP for Initial stock uploading? Mention the accounting entries also.
Initial stock uploading in SAP from the legacy system is done with inventory movement type 561( a MM transaction which is performed).

Material valuated at standard price: For a material valuated at standard price, the initial entry of inventory data is valuated on the basis of standard price in the material master. If you enter an alternative value at the time of the movement type 561, then the system posts the difference to the price difference account.

Material valuated at moving average price: The initial entry of inventory data is valuated as follows : If you enter a value when uploading the initial data, the quantity entered is valuated at this price. If you do not enter a value when entering initial data, then the quantity entered is valuated at the MAP present in the material master.
The accounting entries are: Inventory account is debited and Inventory Historical upload account is credited.

can you default the G/L account in Purchase order?

If a material has no material code in SAP, can you default the G/L account in Purchase order or it has to be manually entered?.
If a material has no material code in SAP, we can still, default the G/L account with the help of material groups. We can assign the valuation class to a material group and then in FI-automatic posting, we can assign the relevant G/L account in the Transaction event key. The assignment of a valuation class to a material group enables the system to determine different G/L accounts for the individual material groups.

Is it possible to default certain values for particular fields?

Yes it is possible to default values for certain fields where a parameter id is present.
Step 1 Go to the input field to which you want to make defaults.

Step 2 Press F1, then click technical info push button. This would open a window that displays the  corresponding parameter id (if one has been allocated to the field) in the field data section.

Step 3 Enter this parameter id using the following path on SAP Easy access screen System à User profile à Own data.

Step 4 Click on parameter tab. Enter the parameter id code and enter the value you want as default. Save the usersettings.

Which is the default exchange rate type which is picked up for all SAP transactions?

The default exchange rate type picked up for all SAP transactions is M (average rate)

What are the different scenarios under which a Business Area or a Profit Center may be defined?

This question is usually very disputable. But both Business Areas and Profit centers are created for internal reporting. Each has its own pros and cons but many companies nowadays go for Profit center as there is a feeling that business area enhancements would not be supported by SAP in future versions.

There are typical month end procedures which need to be executed for both of them and many times reconciliation might become a big issue. A typical challenge in both of them is in cases where you do not know the Business Area or Profit Center of the transaction at the time of posting.

Is Business area at company code Level?

No. Business area is at client level. What this means is that other company codes can also post to the same business area.

Is it possible to maintain plant wise different GL codes?

Yes. To be able to do so the valuation group code should be activated. The valuation grouping code is  maintained per plant and is configured in  the MM module. Account codes should be maintained per valuation grouping code after doing this configuration.

How do you configure a special GL indicator for Customer?

You can use an existing special GL indicator ID or create a new one. After creating a special GL indicator id, update the chart of accounts and the Reconciliation account. Also as a last step you need to update the
special GL code.

The special GL code should also be marked as a Reconciliation account. Switch on the relevant for credit limit and commitment warning indicators in the master record.

What are Validations and Substitutions?

Validations/Substitutions in SAP are defined for each functional area e.g. FI-GL, Assets, Controlling etc at the following levels
1. Document level
2. Line item level
These need to be specifically activated and setting them up are complex and done only when it is really needed. Often help of the technical team is taken to do that.

What is generally configured in the payment term as a default for baseline date?

Generally document date is configured in the payment term as a default for base line date.

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.