Table of Contents Internal Orders Concepts Introduction Internal Orders are used to manage small projects. You can set budget, post actual and do expenditure analysis for these small projects. Internal orders can be used to manage expenditure on Exhibitions, Trade shows, etc. There are two types of Internal Orders – Real / Statistical Real Real […]
SAP Internal Order Read More »
SAP Product Costing Concepts
Find Cost which are part of Product Cost (COGM)
Find optimum Lot size for manufacturing the product
Find Product cost for each manufacturing location / Plant
In Product costing we estimate the product cost. Product cost estimate is also known as standard product cost
Various techniques used to calculate product cost estimate are as below:
BPO: Base Planning Object
Cost Estimate without quantity structure
Cost estimate with Quantity Structure: BOM and Routing
BOM: It is list of Raw material along with their quantity used to manufacture the product
Routing: List of activities like operation 1, operation 2 etc. performed on raw material to convert it into finished goods
Product Costing is divided into 3 different topics as below:
Planning: Calculate standard cost
Cost Object Planning: This will cover period end process, i.e. Planned cost, Actual cost, variance, settle production order
Actual Costing / Multiple valuations: Material Ledger
SAP Product Costing Types
There are two Product Costing Types
MTS (Make to Stock): In this type goods are produced and stocked. They are sold from the stock. Under MTS there are two scenarios
Product Costing by order
Product costing by period
MTO (Make to Order): This is used for large equipment’s, aircraft manufacturing etc. In this type manufacturing of product starts after receiving the sales order.
SAP Product Costing Configuration
This involves settings for below activities
Costing variant for Plan cost
Costing variant for Actual Cost
Period end process:
WIP
Variance (Plan – Actual Cost)
Settlement: This involve settlement of production order
Create PA transfer structure for COPA
FI entries for WIP and variance are posted only at the time of production order settlement
Integration with PP (Production Planning)
For detailed, step-by-step instructions on SAP Product Costing, follow along with my video tutorial below.
SAP Product Costing Training
Costing Sheet Configuration in SAP
Costing Sheet explanation
What is Costing sheet:
The costing sheet integrates all elements of overhead costing. It consists of the following rows that are processed during the calculation:
Base Row: This contain the calculation Base. Calculation base is made up of cost elements on which OH is calculated
OH Rates Row: This contain OH Rates. OH rates contain percentage rate which applied on calculation base to arrive at OH amount
Total Rows: Used to form subtotal or total of earlier rows. No calculation performed on these rows
Set Controlling Area: OKKS
Controlling area: MK14
Define Costing Sheet Components- Calculation base
Path: SPRO – Controlling – Product Cost Controlling – Product Cost Planning – Basic settings for material costing – Overhead – Costing sheet components – Define Calculation base
The calculation base determines to which cost elements overhead is applied together.
Define Costing Sheet Components- % OH Rates
Path: SPRO – Controlling – Product Cost Controlling – Product Cost Planning – Basic settings for material costing – Overhead – Costing sheet components – Define Percentage OH rates
Define percentage overhead rates, for example, 10% in controlling area AUM1.
Select OH Rate 19MH and below entries
Select 19AH OH rate and make the below entries
Define Costing Sheet Components- Credits
Path: SPRO – Controlling – Product Cost Controlling – Product Cost Planning – Basic settings for material costing – Overhead – Costing sheet components – Define Credits
Here you define Cost center which is to be credited with OH cost. Further this credit is recorded under secondary cost element of category 41 (overhead rates)
Define Costing Sheet
Path: SPRO – Controlling – Product Cost Controlling – Product Cost Planning – Basic settings for material costing – Overhead – Costing sheet
Select Base, OH or Credit and click the respective row to see the details configured earlier
Define Costing Variant in SAP
Costing Variant contain Costing Type, Valuation Variant, Date Control, Quantity structure control, Transfer control and reference variant. We will create three costing variants - Standard cost, Planning cost and Actual cost variant
Costing variants is the link between product costing and Customizing,
The costing variant contains all the control parameters for costing.
The costing variant for a material cost estimate contains the following control parameters:
Costing type
Valuation variant
Date control
Quantity structure control
(only relevant for cost estimates with quantity structure)
Transfer control (optional)
Reference variant (optional)
Note:
Costing Type: Determine type of cost is calculated., whether standard cost, Cost for reporting, etc.
Valuation variant determine how Material, Activities, Subcontract, External Operations and OH are valued
Date Control: Determine validity period of costing run
Define Costing Variant-Costing Type
Path: Controlling – Product Cost controlling – Product Cost planning – Material Cost estimate with quantity structure – Costing variant components – Define costing type
Here you define the purpose of a material cost estimate by specifying, field in the material master record to which the costing results can be transferred to:
Update – Material master Fields Cost Estimate (CK40N)
Standard price Standard cost estimate (01)
Tax-based price Inventory cost estimate
Commercial price Inventory cost estimate
Price other than std. price Modified standard cost estimate
In a client there can be only one costing type for standard price. We will keep SAP standard costing type 01 for standard price
Define Valuation Variant in SAP
Path: Controlling – Product Cost controlling – Product Cost planning – Material Cost estimate with quantity structure – Costing variant components
Here you specify parameters to be used for cost estimate
Material Valuation: define the sequence in which the system searches for prices from the accounting view or costing view of the material master record to valuate materials. E.g. We can specify the sequence in which material price is picked - use moving average price, if not available use Standard Price, if not available use Purchase Info record and so on
Activity Price: Sequence in which activity price is picked. For e.g. take Plan activity price, if not available take actual activity price and so on
Overhead costs: Link the costing sheet prepared in earlier steps to pick the OH cost for cost estimates
Activity type price priority
Sub-contracting price sequence
External Operations price sequence
Under OH select the costing sheet created earlier
OH, on Material Components. Not required in our scenario. If costing sheet assigned here OH 10% and 15% defined in costing sheet will be added to the raw material
To display Number in the drop down enable visualization in the options as below
Valuation variant is defined at plant level
Define Date Control in SAP
Path: Controlling – Product Cost controlling – Product Cost planning – Material Cost estimate with quantity structure – Costing variant components
Tcode: OKK6
Date control determines which dates are proposed or displayed when a cost estimate is created, and whether these dates can be changed by the user.
The validity period of the cost estimate
The date on which the quantity structure is determined ( quantity structure date)
The date on which the quantity structure is valuated ( valuation date)
Define Quantity Structure Control in SAP
Path: Controlling – Product Cost controlling – Product Cost planning – Material Cost estimate with quantity structure – Costing variant components
Tcode: OKK5
Check BOM Selection in SAP
Path: Controlling – Product Cost controlling – Product Cost planning – Material Cost estimate with quantity structure – Settings for qty structure - BOM Selection – Check BOM selection
Tcode: OPJI
BOM: BOM (Bill of Material) : This is list of Raw material along with the quantities required to produce Finished Goods
Specify different sequences of priorities of BOM usages according to your requirements
Check BOM Application
Path: Controlling – Product Cost controlling – Product Cost planning – Material Cost estimate with quantity structure – Settings for qty structure - BOM Selection – Check BOM application
Tcode: OPJM
Here you define BOM application area. Now you assign BOM selection ID created earlier to this BOM application area. Selection ID decides the sequence in which BOM are selected during cost estimate for this BOM application area
Check Routing Selection
Path: Controlling – Product Cost controlling – Product Cost planning – Material Cost estimate with quantity structure – Settings for qty structure - Routing Selection – Check automatic routing selection
Tcode: OPJF
Routing: It is sequence of activities. It specifies on which Work Center (A work center typically refers to a machine) what activities are to be performed for how many hours. Raw Material is converted into finished goods at work center
Define a Routing selection ID
Assign it to alternative selection priorities
Specify selection priority for each of these scenarios
ID: A6: Can be any identifier
SP: Selection Priority
Task List: N: Routing, R: Rate Routing
Plan Usage: 1: Production
Status: 4: Released general
Assign BOM application ID and routing selection ID in Quantity structure control
Tcode: OKK5
Define Transfer Control in SAP
Path: Controlling – Product Cost controlling – Product Cost planning – Material Cost estimate with quantity structure – costing variant component – define transfer control
Tcode: OKKM
Transfer Control: The transfer control specifies how the existing cost estimate is to be used in the cost estimate of the other product. For e.g. Costing done at beginning of the year. All components of the product cost have to be costed to arrive at final Standard Cost. Costing of new component during the year. We can use standard cost of components costed at the beginning of the year if they are being used in manufacture of this new Product. Here we will use the transfer control
In this step you define parameters for partial costing. The purpose of partial costing is to prevent the system from creating a new cost estimate for a material when costing data already exists. Instead, the existing costing data is simply transferred into the new cost estimate. This improves performance.
Define Costing Variant in SAP
Path: Controlling – Product Cost controlling – Product Cost planning – Material Cost estimate with quantity structure – Define costing variant
Tcode: OKKN
Select costing component created in earlier steps and assign to Costing variant MK14. Costing type assigned is 01 Standard Cost and not one created earlier as we want to do standard costing
Qty Structure selection
Additive cost. These are transportation, packing cost added to COGM.
Update selection
Itemization: Detailed break up of cost based on its components
Error management selection
Assignment are optional so ignored for now
Define Cost Component Structure in SAP
Path: Controlling – Product Cost controlling – Product Cost planning – Basic settings for material costing – Define Cost component structure
SAP Product Costing Read More »
Table of Contents SAP Cost Center Tutorial SAP Cost centers are responsibility areas for costs within organization and used to capture actual costs of an organization. Costs can be captured as per department wise, area wise, responsibility person wise, etc. Assigning the costs to cost centers determines where the costs are incurred within the organization
SAP Cost Center Accounting Read More »
The Asset Accounting component is used for managing and supervising fixed assets with the SAP System. In Financial Accounting, it serves as a subsidiary ledger to the General Ledger, providing detailed information on transactions involving fixed assets. Asset Accounting will be covered in this tutorial in below steps
| Description | Topics covered |
| Organization Structure | Check Country Specific Settings |
| Copy Reference Chart of Depreciation | |
| Create 0% tax codes for Sales and Purchases | |
| Assign Input Tax indicator for Non-Taxable Asset Acquisitions | |
| Assign Chart of Depreciation to Company codes | |
| Structuring Fixed Assets | Create Asset Class |
| Create Account Determination key | |
| Create Screen layout | |
| Define Number range interval | |
| Define Screen Layout for Asset Master | |
| Assign Screen layout Rule to the Asset Class | |
| Depreciation Areas | Real Depreciation area |
| Derived Depreciation area | |
| Define Depreciation areas | |
| Specify Depreciation area types | |
| Specify Transfer of APC values | |
| Activate depreciation areas that will be used in asset class | |
| Define Screen layout for Depreciation areas | |
| Assign Screen layout to Depreciation Areas | |
| Integration | Create GL accounts |
| Assign GL Accounts to Account Determination key | |
| Specify Posting key for asset posting | |
| Specify Document type to post depreciation | |
| Activate Account Assignment | |
| Specify Controlling Object (WBS, CC, IO) for APC and Dep | |
| Specify Memo Value | |
| Specify Memo Value not considered for an ASSET Class | |
| Depreciation | Depreciation Overview |
| Define Multilevel Depreciation method | |
| Define Period Control Depreciation Method | |
| Maintain Depreciation Key | |
| End Users Transactions | Main Asset creation |
| Sub asset creation | |
| Post Purchase to main assets | |
| Post Purchase to Sub assets | |
| Asset Explorer | |
| Reports to view assets | |
| Monthly Depreciation run | |
| Asset Under Construction | Define Settlement Profile |
| Assign Settlement profile to company code | |
| Create Number range for settlement document | |
| Create AuC Asset Master | |
| Post purchases to AuC | |
| Line Item settlement from AuC to Main Asset | |
| Asset Retirement with Revenue | Create Asset Master Record |
| Post External Acquisition to AMR | |
| Verify in Asset Explorer | |
| Run Planned Depreciation | |
| Retire Asset with Revenue-Customer | |
| Asset Scrap | Create Asset Master Record |
| Post External Acquisition to AMR | |
| Verify in Asset Explorer | |
| Run Planned Depreciation | |
| Asset Scrap | |
| Intra Company Asset Transfer | Create Asset Master Record |
| Post External Acquisition to AMR | |
| Verify in Asset Explorer | |
| Run Planned Depreciation | |
| Intra company transfer asset- Change Asset Class | |
| Asset Accounting Yr .End Closing | Execute Depreciation run |
| Execute Periodic Asset posting | |
| Execute Fiscal Year Change | |
| Asset Accounting Year End close |
Transaction code: OA08
Chart of Depreciation
Tcode: EC08
Path: SPRO – Financial Accounting – Asset Accounting – Organizational Structures– Copy Reference Chart of Depreciation
| Reference COD | Copied COD | Company Codes |
| 0US | MK14 | MK14 |
Transaction Code: FTXP
Create 0% input tax code: V0
Create 0% Output Tax Code: AO
Tcode: OBCL
Tcode: OAOB
Path: SPRO – Financial Accounting – Asset Accounting – Organizational Structures – Assign Chart of Depreciation to Company code
Asset can be structured at below levels:
Transaction code to create asset class: OAOA
Create Below Asset classes in SAP
| Asset Class | Description | Acct Determination | Screen Layout | No. Range | Inventory |
| LANDMK14 | Land | 61000 | 1000 | 01 | X |
| BU_MK14 | Building | 62000 | 1100 | 02 | X |
| PM_MK14 | Plant and Machinery | 63000 | 2000 | 03 | X |
| FF_MK14 | Furniture and Fixtures | 64000 | 3000 | 04 | X |
| VEH_MK14 | Vehicles | 65000 | 3100 | 05 | X |
| AUC_MK14 | AuC | 66000 | 4000 | 06 | Line Item settlement |
AuC: Asset under Construction. Shown as separate Item in BS. When completed transferred to regular assets through line Item settlement (AIAB). Select Depreciation key which does not provide Depreciation for AuC. Select Negative APC in Depreciation areas to allow credit memo posting during capitalization
Asset class establish the connection between the asset master records and the GL account in Financial Accounting through account determination key
Tcode to create account determination key: S_ALR_870009195
Path: SPRO-Financial Accounting- Asset Accounting- Organizational Structures- Asset Classes – Specify account Determination
Tcode: S_ALR_870009209
Whenever you create an asset the system checks first the table ANKP. If you have chart-of-depreciation-dependent account determination, then an entry in the table ANKP is made. If you than make a copy from such an asset class in the asset class there is another account determination than in the table ANKP and the system takes the account determination from the table ANKP and not from the asset class.
Normally you can’t define chart-of-depreciation-dependent assignments (with transaction ANK1) if there is only one chart of depreciation. If you’d like to change (or delete) this assignment you can use following workaround:
SM34 -> View ANKA_ALL -> Maintain
– select asset class ART (for example)
– Then click in the left column on “Chart of dep – dep data”
Tcode: AS08
Enter company code MK14. Now click Change interval button and enter the below details:
Tcode: S_ALR_87009044
Path: SPRO – Financial Accounting- Asset Accounting – Master Data – Screen Layout – Define Screen Layout for Asset Master Data
Select Screen layout 1000-Land and Select folder ‘Logical field group’
Select field group Posting information. Make ‘Capitalization date’ as required field
Transaction code: OAOA
Real Depreciation Area
Derived Depreciation Area
Tcode: OADB
To create new depreciation area, copy and rename an existing Depreciation Area
Transaction code: OADC
Specify Transfer of APC (Acquisition and Production cost) Values
Tcode: OABC
Specify how values are transferred from Real Depreciation Area to Derived Depreciation Area
Depreciation Area. Values transferred from Real Dep area 01 to Derived Depreciation areas
If selected system, ensure that all APC-relevant posting values to this depreciation area are transferred from the transferring depreciation area with no opportunity for changing the values
Tcode: OAYZ
SPRO – Financial Accounting – Asset Accounting – Valuation – Determine Depreciation areas in the Asset Class
SAP Asset Accounting Read More »
FASB 52: is issued by US accounting standard board. It provides guidance on financial reporting of companies operating in foreign countries
Now let’s configure and test foreign currency valuation in SAP
Main topics covered in this tutorial are as below
| s.no | Topics |
| 1 | Configure Parallel currencies |
| 2 | Enter exchange rates |
| 3 | Define New Exchange Rate Type |
| 4 | Specify Exchange Rate type to be used |
| 5 | Specify whether Direct or Indirect quote has to be used |
| 6 | Define Translation ratios |
| 7 | Valuation Method Setup |
| 8 | Define Valuation Area |
| 9 | Assign valuation area to accounting principles |
| 10 | Automatic account determination for open item exchange rate differences |
| 11 | Additional Settings to display valuation differences in FBL1N/ FBL5N |
| 12 | Month End Foreign currency revaluation and end user postings |
| 13 | Post a foreign transaction vendor Invoice |
| 14 | Update Exchange Rate in transaction code OB08 |
| 15 | Run and analyze Month end foreign currency valuation |
Transaction code: OB22
1st Local Currency
Srce curr. : Translation is taking transaction currency as base. We can also select translation using first local currency as base
Exchange Rate Type: M. this exchange rate type will be used for currency translation at the time of monthly valuation and also when posting FI documents in a currency other than company code currency
Tcode: OB08
System will use the latest exchange rate
Path: SAP Net weaver – General Settings – Currencies – Check Exchange Rate Type
Indicator that in the case of a missing exchange rate entry in the system for the required translation from one currency into another, the inverted exchange rate relationship may also be used
Tcode: OBA7
We can specify the exchange rate type to be used by a specific document type ( KR) in transaction code OBA7
Let us change it to ‘M’
Path: SAP NetWeaver – General Settings – Currencies – Define Standard quotation for exchange rate
Path: SAP NetWeaver – General Settings – Currencies
Always use SAP default
Path: SPRO- Financial Accounting (New) – General Ledger Accounting (New) – Periodic Processing – Valuate – Define Valuation Methods
Tcode: OB59
Here define Valuation method for Open Items
Valuation Procedure:
Path: SPRO- Financial Accounting (New) – General Ledger Accounting (New) – Periodic Processing – Valuate- Define Valuation Areas
Define valuation area for closing operations
Assign Valuation method defined in last step to the valuation area
Path: SPRO- Financial Accounting (New) – General Ledger Accounting (New) – Periodic Processing- Assign valuation area to accounting principles
Path: SPRO- Financial Accounting (New) – General Ledger Accounting (New) – Periodic Processing – Valuate- Foreign Currency Valuation – Automatic Posting for foreign currency valuation
Tcode: OBA1
Select transaction ‘KDF’
Here we have Customer / Vendor reconciliation accounts. For these automatic postings at time of foreign currency, revaluation must be specified
Vendor Master: XK03
SAP Foreign Currency Valuation Read More »
The cash position gives information on the current financial situation in your bank accounts and bank clearing accounts.
The cash position displays the activity in your bank accounts. It is derived from the value date of all payments made within a short period of time. Data is supplied from three sources:
Path: SPRO – FSCM – Cash & Liquidity management – Cash Management – Basic Settings – Define Source Symbols
In this step, you define source symbols and allocate them either to the liquidity forecast or to the cash position.
Cash Position: If selected the source symbol is allocated to the cash management position, otherwise it is allocated to the liquidity forecast.
SPRO- FSCM – Cash and Liquidity – Cash Management – Master data – GL Accounts – Define Planning Level
In this step, you define a planning level for each cash account and allocate this planning level to the cash position by using the appropriate source symbol define earlier. Financial transactions in Cash report (FF7A) are displayed using planning levels in order to explain beginning and ending account balances.
In the standard R/3 System, levels starting with “F” or “B” are reserved for automatically updating data during posting.
These are entered in GL accounts master data in FS00. Based on these levels we can know whether amount is Bank, Clearing or Payment advice in the cash flow report
SAP Recommendation
Source Symbol BNK, implies it will affect the Cash Flow Report
These Planning levels are assigned to Cash Position relevant GL accounts in FS00
Relevant to Cash Flow: If selected, can enter House Bank and Account ID in GL account
Path: SPRO – FSCM – Cash and Liquidity Management – Cash management – Master Data – Sub ledger Accounts – Define Planning Groups
In the customer / vendor master record (Transaction code: XD02/XK02), we can allocate customer / vendor to a planning group. A planning group represents a set of customers / vendors with specific risk profile
We will use the SAP standard planning groups as below:
Vendors
Customers
Assign Planning Groups in Customer / Vendor Master Data as below:
Vendor Master : XK02
Customer Master: XD02
FSCM- Cash and Liquidity Management – Cash management – Structuring – Define cash Management Account name
Here you can replace G/L account number with a mnemonic account for each bank account and bank clearing account. This mnemonic name is used with all functions and reports in Cash position report (Transaction code: FF7A) instead of the account number.
CMF: If you select this field, the account specified is regarded as an internal, cash management and forecast account without a G/L master record.
FSCM- Cash and Liquidity Management – Cash management – Structuring – Grouping – Define Grouping and maintain Header.
In this step, you define the groupings, and stipulate the Main headings and the line headings that the system displays in the cash position (FF7A) or liquidity forecast report.
Groupings affect:
Image-9
FSCM- Cash and Liquidity Management – Cash management – Structuring – Grouping – Maintain Structure
In each grouping you must configure one line of type ‘E’ and one line of type ‘G’
Specify:
Field Selection: Here you have to enter the
Which are to be included in the display or excluded from it. The entries can be masked from the right with ‘+’ to allow a generic entry.
It is important for the entry to match the level, account, in length. This means the entry for levels (F0, F1 etc.) must have two characters; that for accounts must usually have 10.
The following are examples of entries for levels:
•’F1′
•’F+’
•’+1′
•’++’
The following are examples of entries for bank accounts:
•’0000113100′ you must enter the leading zeros.
•’000011310+’
•’00001131++’
The company code and chart of account entries are optional. You can use them to restrict the data considered to one or more company codes.
Cash Position report
Selection: Enter Bank Main accounts and Bank Clearing accounts
Maintain Structure for Liquidity Forecast
SAP Cash Management Read More »
In this tutorial we will be discussing Electronic Bank statement in SAP. Below topics will be covered
In SAP bank statement has to be entered in SAP for reconciling with the company data. The bank statement can be manually entered in SAP or an electronic bank statement can be imported into and processed automatically in SAP.
In order to import the electronic bank statement in SAP, the bank statement should be available in specified bank formats such as BAI2, MT940 format
After importing the bank data, the system interprets the bank data based on the transaction types contained in the bank statement. Based on the rules defined for each bank transaction type the bank items are matched with the company data in SAP. On matching the bank transaction with the transaction in company books the item is marked as cleared in SAP and necessary accounting entry is passed to transfer the same from bank clearing account (Bank sub-account) to the bank main account. The items in bank statement which are not matched are available for processing manually. These items have to be processed manually and cleared with the relevant company data (Transaction code FEBAN)
After the process is completed, the bank main account in SAP will match with the bank statement and the other reconciliation items such as checks issued but not presented, bank charges debited by bank but not accounted in books etc. is available in bank clearing sub accounts for review.
In SAP for every Bank account of the company two set of GL accounts are maintained – Bank main account and Bank clearing sub-account.
The Bank clearing Sub-accounts ensure that all incoming and outgoing payments are only posted to the bank Main account when the transaction is debited /credited in the Bank statement. The entries from the bank sub-accounts to bank main account takes place in SAP when the bank statement (EBS) received from the bank is uploaded in SAP.
Accounting Entries – Payment to vendor (Outgoing)-F110
Vendor Account Dr
Bank Clearing Account Cr
Accounting Entries – Post Electronic Bank Statement in sap
Bank Clearing Account Dr
Bank Main Account Cr
Accounting Entries – Customer Payment Received (Incoming)
Bank Clearing Account Dr
Customer Account Cr
Accounting Entries – Post Electronic Bank Statement
Bank Main Account Dr
Bank Clearing Account Cr
Accounting Entries (Bank Charges) – Post Electronic Bank Statement
Bank Charges Account Dr
Bank Main Account Cr
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SAP EBS : Tutorial 1 |
SAP EBS Configuration steps |
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Bank Master Creation
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Create House Bank |
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Update Customer/ Vendor master with bank details |
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Electronic Bank Statement Implementation |
Create Account Symbols |
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Assign Account Symbols to GL accounts |
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Create Keys for Posting Rule |
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EBS Posting Rule |
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Create Transaction Type |
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Assign External Transaction Types to Posting Rules |
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Assign Bank Account to Transaction Type |
For detailed, step-by-step instructions on SAP EBS course follow along with my video tutorial below
Transaction Code: FI01 / FI02 / FI03
Transaction code: FI12
Define Vendor bank to which payment will be made in SAP Payment run (Transaction code #F110)
Where vendor has many banks, identify them with value in field BnkT and enter this in Vendor Invoice line item to identify the bank to which payment will be made
Specify G/L accounts (such as bank, cash receipt, outgoing checks) to which postings are to be made from the account statement. You assign account symbols to the G/L account numbers
IMG Path: Financial Accounting- Bank Accounting – Business Transactions – Payment Transactions – Electronic Bank Statement – Global Settings – Create Account Symbols
| Account Symbol | Account Symbol Description |
| Y0 | Master Account – 113020 |
| Y1 | Wires Out-113023 |
| Y2 | Wire In – 113027 |
| Y3 | ACH Out – 113028 |
| Y4 | ACH In – 113027 |
| Y5 | Check Out – 113025 |
| Y6 | Check In – 113022 |
| Y7 | ZBA Transfer – 113026 |
| Y12 | Bank Charges |
IMG Path: Financial Accounting- Bank Accounting – Business Transactions – Payment Transactions – Electronic Bank Statement – Global Settings- Assign accounts to Account Symbols
Assign account symbols defined in step 1 to GL Accounts
Account Modification: With the help of this field, you can direct the posting to a differentiate bank subaccount instead of a standard one. Leave this field blank (or enter the mask “+”) if you do not want to use an account modification.
| Acct Symbols | Acct Mod. | Cur. | GL Account | Notes |
| Y0 | + | USD | ++++++++++ | Main Bank |
| Y1 | + | USD | 113023 | Wire Out |
| Y2 | + | USD | 113027 | Wire In |
| Y3 | + | USD | 113028 | ACH Out |
| Y4 | + | USD | 113027 | ACH In |
| Y5 | + | USD | 113025 | Check Out |
| Y6 | + | USD | 113022 | Check In |
| Y7 | + | USD | 113026 | ZBA Transfer |
| Y12 | + | USD | 660035 | Bank Charges |
Posting Rules carry out General Ledger and Sub-Ledger postings
IMG Path: Financial Accounting- Bank Accounting – Business Transactions – Payment Transactions – Electronic Bank Statement – Global Settings- Create keys for posting rule
| Keys for Posting Rule | Text |
| Y02 | Debit Master, Credit Wire In |
| Y04 | Debit Master, Credit ACH In |
| Y06 | Debit Master, Credit Checks In |
| Y08 | Debit Master, Credit Other Transfer |
| Y10 | Debit Wire Out, Credit Master |
| Y30 | Debit ACH Out, Credit Master |
| Y50 | Debit Checks Out, Credit Master |
| Y80 | Debit Other Transfer, Credit Master |
Here you specify how a given business transaction is to be posted.
IMG Path: Financial Accounting- Bank Accounting – Business Transactions – Payment Transactions – Electronic Bank Statement – Global Settings- Define Posting rules
Posting Area 1 is for Main Bank Accounting
Posting Area 2 is for Sub ledger Accounting
A posting type “option” is assigned to each rule
| Posting Type | Value |
| Post To G/L Only | 1 |
| Post to Sub-Ledger -DR | 2 |
| Post to Sub-Ledger -CR | 3 |
| Clear GL Account – DR | 4 |
| Clear GL Account – CR | 5 |
| Clear Sub ledger Account – DR | 7 |
| Clear Sub Ledger Account – CR | 8 |
| Posting Rule | Posting Area | PK | ACCT (DR) | PK | ACCT (CR) | DOC TYPE | Posting Type |
| Y02 | 1 | 40 | Y0 | 50 | Y2 | SA | 1 |
| Y02 | 2 | 40 | Y2 | – | – | DZ | 8 |
| Y04 | 1 | 40 | Y0 | 50 | Y4 | SA | 1 |
| Y04 | 2 | 40 | Y4 | – | – | DZ | 8 |
| Y06 | 1 | 40 | Y0 | – | Y6 | SA | 5 |
| Y08 | 1 | 40 | Y0 | – | Y8 | SA | 5 |
| Y10 | 1 | – | Y1 | 50 | Y0 | SA | 4 |
| Y30 | 1 | – | Y3 | 50 | Y0 | SA | 4 |
| Y50 | 1 | – | Y5 | 50 | Y0 | SA | 4 |
| Y80 | 1 | – | Y8 | 50 | Y0 | SA | 4 |
IMG Path: Financial Accounting- Bank Accounting – Business Transactions – Payment Transactions – Electronic Bank Statement – Global Settings – Create Transaction Type
Transaction types are assigned to bank account. This will determine what posting rules are used for a specific BAI code in that bank account
| Transaction Type | Name |
| BAI | Bank Administrative Institute |
IMG Path: Financial Accounting- Bank Accounting – Business Transactions – Payment Transactions – Electronic Bank Statement – Global Settings -Assign External Transaction type to Posting rule
Assign External Transaction types to Posting Rules so that R/3 knows what to do with incoming EBS transactions
Choose + or – depending on whether the transaction increases (+) (deposit) or decreases (-) (withdrawal) the bank account balance
Assign the bank accounts to a transaction type, for which the account statements are to be imported
IMG Path: Financial Accounting- Bank Accounting – Business Transactions – Payment Transactions – Electronic Bank Statement – Global Settings-Assign Bank accounts to Transaction types
| BAI Field | Description |
| Record ID | Always 01 |
| Sender ID | Wells Fargo Routing number (121000248) |
| Receiver ID | Alphanumeric customer ID assigned by Bank |
| File Creation Date | File Creation date (YYMMDD) |
| File Creation Time | File creation time (HHMM) |
| File ID | Two-digit counter 01 |
| Physical record length | Always 080 |
| Block Size | Null (blank) |
| Version Number | Always 2 |
| BAI Field | Description |
| Record ID | Always 02 |
| Ultimate Receiver ID | Alphanumeric customer ID assigned by Wells Fargo / Bank |
| Originator ID | Routing Transit number or Bank identifier code |
| Group status | Always 1 |
| As of Date | YYMMDD |
| As of time | Null |
| Currency Code | Null |
| As of Date modifier | Null |
SAP Electronic Bank Statement Tutorial Read More »
Table of Contents SAP Controlling Controlling module provide information to management for planning, reporting and monitoring of business operations. Controlling and Finance are independent modules in SAP. Data flows between Finance and Controlling module on real time basis. Cost Element provides the integration point between Controlling and Finance. A cost element can be an expense
Accounts Receivable is a submodule of SAP FI and is used to manage and record Accounting data for all the customers. It handles customer invoices, customer receipts, correspondence and related activities. SAP Accounts Receivable will be covered in below post
Transaction code: XDN1 
Customer are classified into various account groups. The account group determines the following:
Transaction code: OBD2 
This control the fields available in Customer master data accessed through transaction code XD01, XD02
Transaction Code: OVT0
Transaction code: OBAR
Transaction code: S_ALR_87003378 IMG Path : SPRO – Financial Accounting – Accounts Receivable and Accounts Payable – Customer Accounts – Master Data – Preparation for creating customer master data – Define sensitive field for dual control (Customers) We can define certain fields in customer master as sensitive fields. Any changes to these have to be confirmed by two users for the change to be effective. Further once a sensitive customer is changed, customer is blocked for sales till changes confirmed This block is removed when the change to sensitive field is confirmed by second user in transaction code FD08. If the change is rejected by second user in transaction code FD08, customer remains blocked for sales. Generally fields like Customer Bank account number, routing number are defined as sensitive fields
Centrally: XD01 Accounting Alone: FD01 Sales area only: VD01 Create customer in account group MKLO created earlier
| S.No. | Description | Transaction |
| 1 | Change Customer Master | XD02 |
| 2 | Display changes to Customer Master record | XD04 |
| 3 | Block / Unblock Customer Master | XD05 |
| 4 | Flag Customer master for deletion | XD06 |
Transaction code: OBR2 Master record can be deleted only if below conditions satisfied:
IMG Path : SPRO – Financial Accounting – Accounts Receivable – Customer Accounts – Line Items – Display line Items – Define Additional fields for Line Item Display Here we can define additional fields from table BKBF, BSEG, BSEC etc. which can be displayed in FBL5N 
| Task | Description | Transaction Code |
| Accounts for Cash Discount | System post to this account when clearing a customer invoice against payment received from customer with tolerances defined | OBXI |
| Define accts for Under/ Over payments | Discussed earlier | OBXL |
| Bank Charges | BNK : Bank Posting BSP : Bank Charges | OBXK |
OBXI 
OBXK 
Purpose When the customer misses the payment for the outstanding invoice within specified payment due date. The dunning letter is generated via sap program and send at customer address / email as reminder of outstanding payment. There are various standard correspondence types available like invoice print, account statement etc. Custom correspondence types can also be created. Correspondences can be created at the time of particular business transaction processing or at a later stage for already created transaction postings. Correspondence can be sent to customer/ vendor in various formats like email, and fax Various correspondence type which exist in SAP and can be copied to create new correspondence types are listed below:
| Correspondence Type | Correspondence Description | Print Program | Required Data | Sample standard SAP Script Form |
| SAP01 | Payment notices | RFKORD00 | Document number | F140_PAY_CONF_01 |
| SAP06 | Account statements | RFKORD10 | Account number and date | F140_ACC_STAT_01 |
| SAP07 | Bill of exchange charges statements | RFKORD20 | Document number | F140_BILL_CHA_01 |
| SAP09 | Internal documents | RFKORD30 | Document number | F140_INT_DOCU_01 |
| SAP10 | Individual letters | RFKORD40 | Account number | F140_IND_TEXT_01 |
| SAP11 | Document extracts | RFKORD50 | Document number | F140_DOCU_EXC_01 |
| SAP13 | Customer statements | RFKORD11 | Customer number and date | F140_CUS_STAT_01 |
IMG Path: – SPRO > Financial Accounting (New) > Accounts Receivable and Accounts Payable > Customer Accounts > Line Items > Correspondence > Make and Check Settings for Correspondence > Define Correspondence Types Transaction Code:-OB77 Here various SAP standard correspondence types are available. You can also create your custom correspondence types. You can specify that what data is required for generating a correspondence, e.g. for account statement you can specify that customer/ vendor master is necessary for the statement. 
IMG Path:-SPRO > Financial Accounting (New) > Accounts Receivable and Accounts Payable > Customer Accounts > Line Items > Correspondence > Make and Check Settings for Correspondence > Assign Programs for Correspondence Types Transaction Code: –OB78 
Here you need to link the correspondence generator program to the correspondence type. You can also specify different programs for different company codes. (Also, you can specify the default variant here for the program to execute. You can create such variant from transaction SE38/ SA38 for the program.) You can also create your own custom program as a copy of the standard program and can make suitable changes to meet any of your client specific need
Path:-SPRO > Financial Accounting (New) > Accounts Receivable and Accounts Payable > Customer Accounts > Line Items > Correspondence > Make and Check Settings for Correspondence > Determine Call-Up Functions Transaction Code:-OB79 
Here you need to specify that at what point of time you can generate the particular correspondence type. The various options available are:-
Path:-SPRO > Financial Accounting (New) > Accounts Receivable and Accounts Payable > Customer Accounts > Line Items Correspondence > Make and Check Settings for Correspondence > Define Form Names for Correspondence Print Transaction Code: –OB96 
Here you need to specify that which forms definition will be used by the correspondence print program. You can also specify a different setting for different company codes. (The SAP Script form is defined using the transaction SE71, where the various data is arranged in the output format to get processed.) You can also use two digit form IDs, by which you can call different forms for different form IDs in the same company code. This form ID can be given in the selection screen of the print program generating correspondence.
Path:-SPRO > Financial Accounting (New) > Accounts Receivable and Accounts Payable > Customer Accounts > Line Items > Correspondence > Make and Check Settings for Correspondence > Define Sender Details for Correspondence Form Transaction Code:-OBB1 
Path:-SPRO > Financial Accounting (New) > Accounts Receivable and Accounts Payable > Customer Accounts > Line Items > Correspondence > Make and Check Settings for Correspondence > Define Sort Variants for Correspondence Transaction Code: –O7S4 
You can specify in which order the correspondence letters will get generated. E.g. if you are generating account statement for multiple vendors, then vendors will get sorted in this order and then the letter will get generated. This Sort Variant can be given in the selection screen of the print program generating correspondence.
Path:-SPRO > Financial Accounting (New) > Accounts Receivable and Accounts Payable > Customer Accounts > Line Items > Correspondence > Make and Check Settings for Correspondence > Define Sort Variants for Line Items Transaction Code: –O7S6 
You can specify that in which order the various line items will appear in a correspondence letters. E.g. if a vendor account statement has multiple invoices, then invoices will get sorted in this order and then the letter will get generated. This Sort Variant can be given in the selection screen of the print program generating correspondence.
Correspondence can be generated at below times:
The correspondence can be generated while you create, change or display the document. Path: Environment > Correspondence and select relevant correspondence type, e.g. below screen in FB70 customer invoice creation:- 
Similarly correspondence can be generated from document display/ change from the transaction, like in FB02/ FB03/ FLB5N, etc.
For existing accounting documents you can use transaction code FB12. Enter company code, Customer number, Posting date etc. as shown below. After that correspondence is requested 
From transaction F.27, you can generate the correspondence (Account Statement) for vendor(s) / customer(s). 
Here “Indicator in Master Record”, the value given should match with the value given in customer/ vendor master data > Company Code > Correspondence.
Correspondence Printing Transaction code : F.61 Correspondence request generated in transactions FB12 and FB70 will be printed here 
Display the correspondence generated/Spool in Transaction code : SP01 
This functionality calculates interest at the specified rate ( in SAP configuration) interest on customer invoices past due and Invoices paid after due date. This interest is debited to customer account and credited to interest received account. Program can also create a correspondence with details of past due customer invoices, interest amount on these invoices. This it can send automatically to customer through various means like email etc.
Path: SPRO – FA – AR/AP – Business Transactions – Interest Calculation – Interest Calculation Global Settings – Define Interest Calculation Types
Here we define the interest indicator. This has to maintain in customer master on whom interest has to be calculated.
Interest Calculation Types:
Path: SPRO – FA – AR/AP – Business Transactions – Interest Calculation Global settings –Prepare Item interest calculation
Here make general settings for item interest calculation:
Path: SPRO – FA – AR/AP – Business Transactions – Interest Calculation – Interest calculation – Define reference interest rates
Here you maintain interest rate for which interest rate percentage is maintained later in the configuration. This percentage is used to calculate interest amount
Path: SPRO – Financial Accounting – AR/AP – Business Transactions – Interest Calculation – Interest calculation- Enter interest value
Path: SPRO – FA – AR/AP – BT – Interest Calculation – Interest calculation- Define Time based terms
In this activity, you specify how the system determines an interest rate for each interest indicator.
Path: SPRO – Financial Accounting – AR/AP – Business Transactions – Interest Calculation – Interest Posting – A/R: Calculation of interest on arrears
In this step, you define the specifications for posting the interest calculated as interest on arrears.
The account determination is carried out via the posting interface of application 0002.
Account determination keys and posting details
For the business transaction account determination key, 1000 (interest earned) and 2000(interest paid) should be entered.
For every combination of the account determination keys, you specify a debit-posting key, a credit posting key and account symbols (posting details). You use the account symbol 1000 for the customer posting.
GL Accounts
G/L accounts: For each G/L account symbol, you specify the account allocation for interest earned and interest paid in full.
Create Account symbols
Tcode: XD02
Path: SPRO – Financial Accounting – AR/AP – Business Transactions – Interest Calculation – Print
Transaction code: FINT
Interest document posted: FB03
For detailed, step-by-step instructions on SAP Lockbox follow along with my video tutorial below
When the customer misses the payment for the outstanding invoice within specified payment due date. The dunning letter is generated via sap program and sent to customer address / email as reminder of outstanding payment.
The dunning system covers the following documents
SAP Accounts Receivable Read More »
Table of Contents SAP Accounts Payable SAP AP is a submodule of SAP FI and is used to manage and record Accounting data for all the vendors. It handles vendor invoices, vendor payments and related activities. SAP Accounts Payable will be covered in four post as below SAP Accounts Payable Master Data SAP Accounts Payable
SAP Accounts Payable Read More »
