ERP Solutions

  Introduction What is an ERP system? And why should businesses use it? Today, small and medium-sized businesses (SMEs) also face some of the problems that large enterprises do. One of them being planning and managing their resources. SMEs face similar complexities but have limited resources to deal with them. Small businesses (like their bigger counterparts) have to: Do accounts to track their sales/purchases. Do their taxes. Pay their employees. Manage deliveries within promised timelines. Deliver quality goods and services. Communicate with customers, answer their queries. Large enterprises invest millions of dollars in highly sophisticated systems like SAP. SAP and similar systems are able to handle requirements from these large enterprises to bring their  multi-country ,  multi-company ,  multi-currency , global businesses into a single platform. This has helped them achieve consolidation of data/records in the fundamental processes such as accounting, taxation,...

Posting Keys in SAP FI are used to determine Account types (A, D, K, M, and S) and also the type of posting. It is 2-digit numerical key. Different Account Types in SAP FI − A = Assets D = Customers K = Vendors M = Materials S = General Ledger Account Asset Posting Keys Posting Key Description Debit/Credit 70 Debit Asset Debit 75 Credit Asset Credit Material Posting Keys Posting Key Description Debit/Credit 89 Stock Inward Movement Material Debit 99 Stock outward Movement Material Credit There are various Account type posting keys available in SAP FI. How to create a SAP FI Posting Key? Go to SPRO → SAP Reference IMG → Financial Accounting → Financial Accounting Global Setting → Document → Line Item → Controls → Define Posting Keys → Execute. Click the Create icon. Enter the 2-digit numeric code (Example ‘02’) and the name of the posting key and press the Enter key. Now you need to provide the following details − Debit/Credit Indicator  − Select Debit or Credit. Account Type  ...

Field Status Variant is used to define the fields which are used for input like cost center, profit center, plant, etc., which are entry fields, and hidden fields. Field status Variant is a tool which is provided by SAP to assign the same set of properties to more than one object. Example  − We define fiscal year variant and it can be assigned to more than one company code. If a field status variant is assigned to more than one company code, the same set of screen field will be displayed while posting those company fields. Difference between field status variant and field status group Field status variant will have field status groups. Field status group is maintained in GL account and it defines the fields while posting to the GL. How to create Field Status Variant? Go to SPRO → SAP Reference IMG → Financial Accounting → Financial Accounting Global Setting → Document → Line Item → Controls → Define Field Status Variant → Execute. It will open a new window. Select field status vari...

SAP FI Posting period variant is used to maintain accounting periods that are open for posting and all closed period are balanced. This is used for opening and closing period in the fiscal year for posting purpose. You can assign these posting periods to one or more company codes. How to create posting period variants in SAP FI? Go to SPRO → SAP Reference IMG → Financial Accounting → Financial Accounting Global Setting → Document → Posting Periods → Define Variant for open Posting Periods → Execute. It will open a new window. Now, click New Entries. It will open another window, as shown below. Enter the 4-digit Posting Period Variant and name of the field. Click the Save icon to save this variant. Open and Close Posting Periods Go to SPRO → SAP Reference IMG → Financial Accounting → Financial Accounting Global Setting → Document → Posting Periods → Open and Close Posting Periods → Execute. Click the button New Entries, as shown in the following screenshot. Now, you need to provide the ...

Fiscal year variant contains the number of posting periods in a fiscal year and the number of special periods. You can define up to 16 posting periods in a fiscal year in the controlling component CO. You need to specify the fiscal year variant for each company code. When you create a controlling area, you also need to specify the fiscal year variant. The fiscal year variants of the company code and controlling area may only differ in the number of special periods used. You need to ensure that the fiscal year variants match. In other words, they may not have a time conflict. How to create a Fiscal year variant? Go to SPRO → SAP Reference IMG → Financial Accounting → Financial Accounting Global Setting → Fiscal Years → Maintain Fiscal year variant → Execute. It will open the following window. Click New Entries and it will open a new window as shown below. Provide the following details − FV  − Enter 2-digit Fiscal year. Description  − Enter a description of the Fiscal year varia...

The use of Journal Entry (JE) posting in SAP FI is to take a batch, validate it for consistency, and create FI documents and post those entries in various line item accounts needed for subsequent business processing. JE Posting is a process that, with a few exceptions, runs "behind the scenes" and is the heart of Journal Entry. It receives journal entry data (representing financial transactions) from the PRA modules (Valuation, Revenue Distribution, etc.), and summarizes them in batches and posts them to the PRA JE line item tables and to SAP FI. Journal Entry Posting is the link between the journal entries coming from PRA applications and the FI documents and JE line item table items that are created. How to post a journal Entry in SAP FI? Use  T-code  FB50 → Provide the Company code. Enter the document date as shown below − The next step is to provide the following details − G/L Account  − Enter the account to be credited. Short Text  − Description of amount. Amoun...

General Ledger accounts can be used as per legal regulations to generate the final statements. Financial statement versions are used to create the financial statements, to run account balance reports and for General Ledger accounting planning. You can also define multiple financial statement versions to generate financial statements in different formats. Follow the steps given below to create financial statement versions − T-code  SPRO → SAP Reference IMG → Financial Accounting → General Ledger Accounting → Business Transactions → Closing → Document → Define Financial Statement Versions → Execute. Click the button New Entries as shown below − Provide the following details − Enter the Fin. Stmt. Version. Enter the Description of the financial statement version. Maint. Language  − Enter the language key in which you display texts, enter texts, and print statement. Item Keys auto  − It tells keys of financial statement items are assigned manually or automatically when the fi...

In SAP R/3, go to Accounting → Finance Accounting → General Ledger → Master Records → G/L accounts → Individual Processing → Centrally. In the G/L Account, provide the account number of G/L account and the company code key. To delete a G/L account, click the Delete button as shown below. The next step is to select deletion options for the G/L account − Deletion flag COA Deletion flag in company code. Select the correct check box and click the Save configuration. SAP FI – Modify a G/L Account To modify a G/L account, click the Change option. Refer the following screenshot. The next step is to select the changed field − Click the Save button to effect the changes.

In SAP R/3, go to Accounting → Finance Accounting → General Ledger → Master Records → G/L accounts → Individual Processing → Centrally. In G/L Account, provide the account number of G/L account and the company code key. Click the Block button as shown in the following screenshot. Once you click the Block button, you will get different blocking options such as − Block in Chart of accounts. Blocked for creation Blocked for Posting Blocked for Planning Block in Company Code Blocked in posting

General Ledger (G/L) accounts are used to provide a picture of external accounting and accounts and to record all the business transactions in a SAP system. This software system is fully integrated with all the other operational areas of a company and ensures that the accounting data is always complete and accurate. How to Create a New G / L Account? You can use the  T-code  FS00 to centrally define a G/L account. Refer the following screenshot. You can also use the following path − In SAP R/3, go to Accounting → Finance Accounting → General Ledger → Master Records → G/L accounts → Individual Processing → Centrally. In the field G/L Account, enter the account number of G/L account and the company code key and click the Create icon as shown in the following screenshot − The next step is to enter the details in the Charts of Account. Account Group Account Group determines the group for which the G/L account must be created, for example, Administrative Expenses, etc. P&L Stat...

Retained Earnings Account is used to carry forward the balance from one fiscal year to the next fiscal year. You can assign a Retained Earning Account to each P&L account in the chart of accounts (COA). To automatically carry forward the balance to the next fiscal year, you can define P&L statements as per COA and assign them to the retained earning accounts. How to define Retained Earnings Account? There are two ways to define a Retained Earnings Account. You can either use the  T-code  OB53 or by  T-code  SPRO. Go to SAP Reference IMG → Financial Accounting → General Ledger Accounting → G/L Accounts → Preparations → Define Retained Earnings Account → Execute. Enter the Chart of Accounts to define the Retained Earning Account for COA and press Enter. Provide the P&L Account statement account type and account → Press Enter and save the configuration.

You can create a SAP FI chart of accounts group as per your requirement. To effectively manage and control a large number of G/L accounts, you should use COA groups. How to define Chart of Accounts Group? There are two ways you can create a new COA group. The first method is to use the  T-code  OBD4. You can also reach to this screen by following the path − T-code  SPRO → SAP Reference IMG → Financial Accounting → General Ledger Accounting → G/L Accounts → Preparations → Define Account Group → Execute → New window will open → New Entries. Populate the following fields in the COA group: Chart of Account Key, Acct Group, Name, From Acct. and To Account details. After providing the required details, click the Save Configuration option to create the COA group.

The General Ledger is used to record all the business transactions in a software system. SAP FI – Chart of Accounts The FI chart of accounts represents the list of GL accounts that are used to meet the daily needs and the operating country’s legal requirement in a company. The master chart of accounts must be assigned to each company code. Chart of accounts (COA) can be divided into the following types − Operating Chart of Accounts  − It contains all the General Ledger accounts that are used to meet the daily needs in a company. The operating chart of accounts has to be assigned to a company code. Country Chart of Accounts  − It contains a list of all General Ledger accounts that are required to meet the operating country’s legal requirements. You can also assign a company chart of account to the company code. Chart of Accounts Group  − This COA group contains a list of all the G/L accounts that are used by the entire company. How to create a new Chart of Accounts? You ca...