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SAP FI - Chart Of Accounts

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.

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

SAP FI - Submodules

SAP FI has a collection of submodules, as depicted in the following screenshot − Finance Accounting - General Ledger A General Ledger contains all the transaction details of a company. It acts as the primary record to maintain all accounting details. Common general ledger entries are customer transactions, purchases from vendors, and internal company transactions. Common T-codes that are used to maintain G/L accounting − F-06 F-07 FBCJ FB50 FB02 Finance Accounting - Accounts Receivable and Payable (AR / AP) It includes the details of amount that is paid by the customer and the amount that is paid by company to the vendors. In other words, AP includes all the vendor transactions and AR includes all the customer transactions. Common SAP AR T-codes − FD11 FD10 FRCA VD01 Common SAP AR Tables − KNA1 KNVV BSIW Common SAP AP T-codes − XK01 MK01 MK02 FCHU Common SAP AP Tables − LFA1 LFM2 LFBK Finance Accounting Asset Accounting Asset Accounting deals with all the fixed asset of the compa