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SAP FI Define Posting Keys

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 − Select

SAP FI - Field Status Variant and Field Status Group

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 variants

SAP FI Posting period variant

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

SAP FI Deleting GL Account

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.

SAP FI BLOCK GL ACCOUNT

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

SAP FI GL Account

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 Statement Acc

SAP FI Retained Earnings

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.

SAP FI GENERAL LEDGER

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 can create a new

SAP FI - DEFINE CREDIT CONTROL

Credit Control in FI is used to check the credit limit for the customer and it can use one or more codes. It is used for credit management in Application components such as Account Receivable (AR) and Sales and Distribution. The credit control area is determined in the following sequence − User exit Distribution channel Customer master Company code for the sales organization How to define a Credit Control Area? A Credit Control Area is defined in accordance with the areas of responsibility for credit monitoring. Use the T-code SPRO → click SAP Reference IMG. It will open a new window. Expand SAP Customizing implementation guide → Enterprise Structure → Definition → Finance Accounting → Define Credit Control Area → Execute. Click Execute → New entries → Enter the below details → Save. Now you have successfully configured the Credit Control Area. Once you create the Credit Control Area, the next step is to assign a company code to the credit control area. Expand Enterprise structure →

SAP FI - Functional Area

Function Areas in finance accounting are used to define the expenses in a company according to individual function units. The most common Functional Areas are − Manufacturing Sales and Distribution Production Administration How to Define a Functional area in SAP FI? You can define a Functional Area using the T-code FM_FUNCTION (Earlier it was OKBD, but this is obsolete). It will open a new window. Click on Create Functional Area as shown below and a new window will open. Enter the following details − Name of Functional Area. Description Validity to and from date Expiration date and Authorization. Once all the details are provided, click the Save button at the top. Once you click Save, you will see a message at the bottom that a new functional area has been created. Functional Areas are used to create Profit and Loss statements using the cost of sales accounting and they are also used to analyze the cost of sales accounting. For this, you need to activate the cost of sales accounting

SAP FI - Business Area

Business Areas are used to differentiate transactions that come from different lines of business in a company. Example There is a big company XYZ which runs multiple businesses. Let us assume it has three different domains like manufacturing, marketing, and sales. Now you have two options − First is to create different company codes. And the other better option is to create each of these business lines into the business areas. The benefits of using Business Areas in this case are as follows − You can use these business areas if other company codes require the same areas. It is easy to configure if you use a Business Area, as you just need to attach to the company code and the other details in that business area will get attached automatically. By using Business Areas in controlling, you can create Profit and Loss statement, Balance Sheet, etc. for business areas. Hence it is used for management accounting in a few companies. Note − Business areas are used more in Controlling as compar

SAP FI - Company Basics

A company is defined as the smallest unit for which financial statements can be created in accordance with commercial legal regulations. In SAP FI, a company can comprise of multiple codes, however it acts as a single unit for which financial statements are available. All the company codes must use the same chart of accounts list and fiscal year, however each code can have a different local currency. A chart of accounts list consists of all the chart of accounts that can be used and each code must have one chart of account. A fiscal year normally consists of twelve months’ time period where company creates the financial statements. SAP FI – Create Company Login to SAP FICO Use T-code SPRO → click on SAP Reference IMG → New window will open. Expand SAP Customizing implementation guide → Enterprise Structure → Definition → Finance Accounting → Define Company → click on Execute (see the pointer in the screenshot). A new window will open → click on New Entries → New Entries: Details of a