SAP Account Determination Material

General Ledger ( G/L ) Accounting is a central component in SAP Financials where monetary values corresponding to all business transactions are recorded.


Throughout the month, more often than not, G/L Accounting is at the receiving end of postings generated in other SAP components. For example, a goods receipt posted in Inventory Management creates a G/L entry to the debit inventory and credit clearing account. Similarly, an expense report posted in Accounts Payable creates a G/L entry to the debit travel expense and credit payables.

At the end of the month, as part of month-end processing, quarter-end processing, or year-end processing (collectively called period-end processing), you must carry out several activities in G/L Accounting in order to prepare financial statements that are in statutory compliance and reflect the state of the business as accurately as possible.

These activities typically include the reconciliation of numbers, the reversal of accrual entries from prior months, the creation of new accrual entries based on current month business, valuation of foreign currency transactions, adjustment postings for errors or reclassifi cation, etc.

Some of these activities must be done manually e.g., adjustment postings to correct errors. However, for some other activities, such as valuation of foreign currency, some level of automation can be introduced.

As you will see in this material, the G/L account determination process in G/L Accounting mostly uses the transaction key technique to obtain the required G/L accounts for business transactions. (SAP-Press.com)

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duplicated invoices function in SAP

In SAP FI, when checking for duplicated invoices, the system compares the following :

Vendor, currency, company code, gross amount of the invoice, reference document number and Invoice document date.


SAP Note: 305201 clarify this in a more detail below:

The following fields must be identical for Duplicate invoice check

Company code (BUKRS)
Vendor number (LIFNR)
Currency (WAERS)
Reference number (XBLNR)
Amount in document currency (WRBTR)
Document date (BLDAT)

If the document is having any one of the above filled different then the system does not consider it as a duplicate invoice and also It will check duplicate invoice check in vendor master data and in posting key is there check box selected for sales related

The setting you making in OMRDC i.e. Materials management->Logistics Invoice Verification-Incoming Invoice ->Set Check for Duplicate Invoices is only valid for MM and not FI invoices posted via FB60/FB65.

You should check the F1 help on field "Check double inv." (LFB1-REPRF) in the relevant vendor master record (transaction FK03).

Please also check, that message F5 117 has been set correctly in the IMG using this path:

Financial Accounting -> Financial Accounting Global Settings ->Document -> Default Values for Document Processing -> Change Message Control for Document Control For Document Processing.

Finally & mainly, go to the relevant posting key is defined as sales related in transaction OB41. You have to flag this field if the duplicate invoice check should work.


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Withholding Tax Configuration – Country India Version

Withholding Tax Configuration – Country India Version Material from SAP.com

Applies to:


Organization within India, which wants to get withholding tax computed on Vendor Invoices. As pointed in help.sap.com - CIN does not contain any modifications of standard SAP System objects; hence technically CIN can exist with other add-ons. However, before you implement CIN with other add-ons, you must test the business procedures in the SAP System to ensure that those in the various add-ons are compatible.
Below configuration is based on SAP ECC 6.0. The configuration can also be held as reference for R/3 470 release and 46C release.

The Withholding Tax configuration enables the system to calculate and report TDS in India. The standard functionality is mainly used in withholding of tax from vendor invoices and depositing the same with the tax authorities.

Download Material here >> WHT Tax Config - India Version

You can also find WHT configuration step - Thailand version at SAP Financial Accounting site

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Customization SAP Guide Free Download

This is the most comprehensive Customization Guide i have ever met which consists of step advise for each topics with screen prints and very clear definitions under:

General Settings
Define Countries, Set Currencies, Set Calendar etc…


Enterprise Structure
Define Company, Maintain Controlling Area, Define Location, Maintain Sales Office, Maintain Storage Location, Assign Company code to company/credit control area/controlling area, Assign Plant to Company code, Assign Sales Organization to Company code, Assign Purchasing Organization to Company code etc…

Logistics-General
Configuring Material Master,Field Selection, Maintain Company Codes for Materials Management, Material Types, Define Material Groups/Divisions/Material Statuses/Number Ranges for EANs/UPCs (Barcode), Maintain Authorizations and Authorization Profiles etc…


Sales And Distribution
Define Customer Groups, Define Delivery Priorities, Define Terms of Payment, Define Incoterms, Define Sales Document Types, Define Purchase Order Types, Define Billing Types, Define Order Types for Intercompany Billing, Define Sales Activity Types etc…

Materials Management
Consumption-Based Planning, Define Number Ranges for Planning Run, Define MRP Controllers, Define Order Profile, Configure MRP List / Stock/Requirements List, Define Tax Jurisdiction, Define Shipping Instructions, Define Terms of Payment, Check Incoterms, Create Purchasing Groups etc…


Download here: SAP Free Download

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More SAP FI configuration considerations

Business Area, COA, GL, Fiscal year and Currencies

Business Area

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)

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

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

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

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.

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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

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

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

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.

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Tax Configuration in SAP

SAP takes care of tax calculation, tax postings, tax adjustments, and tax reporting through the three FI components; namely GL, AP, and AR.

SAP allows taxation at three levels:

• National level or federal level (Europe, South Africa, Australia, etc.)
• Regional or jurisdiction level (USA)
• National and Regional level (India, Canada, Brazil etc.)

As the requirement of tax configuration in SAP you should define the following:

Base Amount for Tax Calculation

For each Company Code you need to define whether the Base Amount includes the cash discount as well. If the base amount includes the discount, then the tax base is called ‘Gross,’ otherwise, it is ‘Net.’ You may also define a similar base amount for calculatingthe ‘Cash Discount.’ This also has to be maintained for each of the Company Codes.

Tax Codes

The Tax Code is a 2-digit code specifying the percentage of tax to be calculated on the base amount. While defining the tax code, you will also specify the ‘Tax Type’ to classify a tax code relating to either ‘Input Tax’ or ‘Output Tax.’ The tax types are country specific and determine how a tax is calculated and posted.

Tax Rate

The Tax Rate is the percentage of tax to be calculated on a base amount. You will be able to define tax rates for one or more tax types when you define a single tax code.

Check Indicators

By using the check indicators, you configure the system to issue Error/Warning Messages when the tax amount entered manually is incorrect.

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A Complete Guide to Company Code and Accounts

With this guide you will get to learn following topics with screenshots of;

Organizational Structures
Company, Company Code
Create Company Code for your company
Chart of Accounts and Fiscal Year Variant
Assign Fiscal Year Variant to Company Code
Assign Company Code to Chart of Accounts
Create Credit Control Area
Assign Company Code to Credit Control Area
Assign Permitted Credit Control Area to Company Code
Determine Tax Version

Download Company Code and Accounts Guide

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Define Posting Keys in SAP

Purpose

In this SAP activity, you define posting keys. During posting of entry, a user is required by the system to specify posting key. It controls how a line item is entered and processed in the system.
For each posting key, you define among other things:

• which side of an account can be posted to
• which type of account can be posted to
• Which fields the system displays on the entry screens and whether an entry has to be made (field status).

Procedure

1. Access the activity using one of the following navigation option:
   SAP IMG Path: Financial Accounting (NEW) → Financial Accounting Global Settings (New) → Document → Define Posting Key.
2. Double-click the posting key.
3. On the next screen choose Maintain Field Status.
4. On the next screen double-click group Additional account assignments.
5. On the next screen set the field status for the three above mentioned fields to Opt. Entry.
6. Then choose Back.
7. Finally choose Save

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Configure Default Baseline Date for Payment

This article is a quick reference on how to set the default value of baseline date for payment in SAP.


A baseline date for payment is the date for which the payment terms apply. It’s the basis of the sytem to determine the cash discount taken (from vendor) or cash discount given (to customer). During entry of customer and vendor invoice transactions, the baseline date field is a required field. You can not proceed with the posting of the transaction not unless the said field is filled-up.

In SAP system, you can customize the default baseline date for payment that appears during transaction entry. You may choose as default either the posting date, document date, entry date or no default date. Do remember you can override the default value of baseline date.

To configure the default value of baseline date for payment, here’s a quick and simple guide:

Transaction Code: OBB8

SAP Path: IMG → Financial Accounting → Accounts Receivable and Accounts Payable → Business Transactions → Outgoing Invoices/Credit Memos → Maintain Terms of Payment.

Select the the default value either posting date, value date, document date or no default. Bear in mind that the default baseline date is applicable for each payment term you maintain. You could have different default baseline date for different payment terms.

Credit: SAP-Knowledge.com

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SAP Extended Withholding Tax Configuration Free Download

This document is a product of sapficoconsultant.com

Introduction

Withholding tax is applicable in few countries. Some of the countries which have withholding tax are United Kingdom, Slovakia, Turkey, Argentina, Brazil, Chile, Colombia, Mexico, India, Philippines , Thailand and South Korea. SAP has given an excellent solution to map the withholding tax scenario.


This material demonstrates how to config extended withholding tax in SAP.

Download here >> SAP Extended Withholding Tax Configuration

Useful SAP Site >> mySAP FI Tutorial

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