SAP FI-MM Integration

Material Management is the Costing unit for Org, they spent money so each and every activity which spent money should be captured by the Finance People.

1. Movement Types: 

Used to enable the system to find the predefined posting rules determining how the accounts of financial accounting system are to be posted & to update the stock fields in the material master data.(Goods Receipt, Goods Issue, etc)

All Material Movements in MM happens with respect to a Movement type.

Goods Receipt – Movement type-101

Goods issue to production Order- Movement Type-261

Scrapping of Goods- Movement Type-551

Goods Delivered to the customer- Movement Type-601

Initial Upload to Stock- Movement Type-561

Material Master-Valuation class- Movement type-Transaction key

2. Valuation Class:

Every Material will have a Valuation Class field. Valuation class could be Finished goods, Semi finished Goods and Raw Materials etc. Combination of Valuation class+ The Movement types determines the GL accounts.

Type of Valuation Class:

3000 – Raw Materials

7900 – Semi finished Goods

7920 – Finished Goods

Raw material procures with Valuation Class 3000 and go for processing , converted to semifinished product with Valuation Class 7900 and finally Finished products converted  with Valuation Class 7920 which you can sale Finished products by creating a sale order(VA01).

3. Transaction key: 

Used to control the storage or filing of documents & assignment of documents.Used to differentiate b/w various transactions such as goods movement that occur in inventory.

BSX – Stock Posting / Inventory Posting

PRD – Price difference

GBB – Offsetting entry for stock posting

WRX – GR/IR Clearing

FRI – Freight Clearing

4.Valuation Modifier: Valuation modifier is also called as valuation grouping code. Use OMWM to activate Valuation Grouping code.

OMWD– Assign Valuation Grouping code to Valuation area.

Valuation grouping code is used to group the valuation area to minimize the effort,  In SAP using two types of valuation area

1.Company Code, 2. Plant,  But the SAP recommends you to use the val;uation area at plant level, because valuation will be differ from one plant to another, if need we can maintain the valuation area at company level also,The valuation grouping code makes it easier to set automatic account determination. Within the chart of accounts,based on our requirement to define individual account determination for certain valuation areas or,to define common account determination for several valuation areas

we can maintain the valuation group code in OMWD for the valuation area as Plant or Company within the chart of account

Note: It is mandatory to maintain Valuation Modifier. As Valuation area  cannot be assigned directly to account determinations. Even if you have only one valuation area, it should be assigned to a Valuation Modifier.

5. Material Type:

Each material should assign material type in Material master record used to update whether changes made in Quantity are updated in material master record & change in value also updated in stock account.

ROH:  Raw materials are always procured externally and then processed. Since raw materials cannot be sold, a material master record of this material type contains no sales data.

HALB: Semifinished products can be procured externally (sub-contracting) as well as manufactured in-house. They are then processed by the company. A material master record of this material type can contain both purchasing and work scheduling data.

FERT: Finished products are produced by the company itself. Since they cannot be ordered by Purchasing, a material master record of this material type does not contain purchasing data.

DIEN: Services are procured externally and cannot be stored. A material master record of this material type can always contain purchasing data

HAWA: Trading goods are always procured externally and then sold. A material master record of this material type can contain purchasing and sales data.

FI-MM: The integration between FI-MM happens in T-code OBYC. 

Step1: First you send a Purchase Order to the Vendor.

Here there won’t be any accounting entry as this is simply like telling the Vendor what goods you want, its quantity and the date of delivery etc.,

Step 2: When GR is posted .

When you receive Goods you CAN NOT make the following entry

Inventory A/c Dr

To Vendor A/c

because, some of the goods you have received may be damaged or may not be upto the mark or for any other reason goods may reject, so before posting it to Vendor A/c we keep it in separate place till we verify the goods. And the actual entry will be:

Inventory A/c Dr (Transaction Key BSX @ OBYC)

To GR/IR A/c (Transaction Key WRX @ OBYC)

Here the goods received is Debited to inventory and Credited to a temporary A/c i.e., GR/IR a/c

Step 3: You will post an Invoice to the Goods received.

Here you will post the invoice after you are satisfied with the goods received, the entry will be

GR/IR A/c Dr

To Vendor A/c

Now the goods are moved from GR/IR A/c and Vendor is Credited. Now you got the final entry of Goods to Vendor Account i.e.

Inventory A/c Dr

To Vendor A/c

i.e., Inventory A/c was Debited and Vendor A/c was Credit and GR/IR A/c is Dr and also Credited hence its balance became ‘Zero’, and it has to be Zero always.

Step 4: Payment to Vendor.

Vendor A/c Dr

To Bank Clearing A/c

Step 5: At the time of Bank Statement upload:

Bank Clearing A/c Dr

   To Bank Main A/c

http://155.56.92.22/wiki/pages/viewpage.action?pageId=235963558

Retained earnings account

Undistributed profit will transfer to the Reserve and Surplus Account

The opening balance on a retained earnings account consists of: Opening balance = Closing balance of the previous year + Retained earnings from the P+L accounts

Consequently, the opening balance on a retained earnings account does not correspond to the closing balance of the previous year.

The carry forward balance of the retained earnings account is representing the cumulated year-end balance of the corresponding P&L accounts. In this example the year-end balance of the P&L accounts are assigned to P&L account type ‘X’.

IMG-Financial Accounting- General Ledger Accounting- G/L Accounts-Master Records -Preparations-Define Retained Earnings Account.

T.Code: OB53.

]

Step 1 -New GL balance carry forward Transaction  FALGVTR (Transaction F.16 for Classic GL) :

The program documentation on transaction FAGLGVTR states the following:

This program is used to carry forward the balances of the general ledger or another ledger to the new fiscal year. The program can be run multiple times. Normally, the program does not need to be run more than once, since postings to the previous fiscal year are automatically carried forward to the current fiscal year, if the balance carry forward program has already been run. Generally the balance is carried forward as follows:

Balance sheet accounts are transferred with all additional account assignments.

P&L accounts are carried forward to the retained earnings account. Additional account assignments are not transferred. The transaction currencies are not transferred and are totalled in the local currency. Retained earnings account(s) have to be maintained for the P&L accounts in which all the P&L accounts are totalled.

Click on “Execute”.

Select Retained earnings Account Button

 

In SE16 table FAGL_CARRY_FORW – Last Balance Carryforward per Company Code/Ledger, is updated with new Fiscal year of balance carry forward for company code and ledger.  (Table T882 for classic GL)

The table FAGL_CARRY_FORW (table t882 for classic GL) only contains the carryfoward for the last fiscal year in this example it is 2013

 

You note that the closing balance for 2012 does not match the opeing balance for 2013 via transaction FAGLB03

 

 

Step 2 – Check the cumulative P&L year-end balance of 2012 with report RFSSLD00

The carry forward period of the retained earnings account contains the cumulative amounts of the year-end balances of the P&L accounts which are assigned to this P&L type.

In SE38 enter report RFSSLD00. Specify the P&L type (in this example the value is ‘X’) in the ‘Free selections parameters of the selection screen. Enter Chart of Accounts, Company Code, Fiscal Year and Reporting Periods.

 

Execute

At the end of the balance list you can review that the total balance for the P&L accounts.  The Accumulated balance = 15.307,52

Step 3 – Check closing balance for the Retained earnings account

In SE38 enter report RFSSLD00.  To obtain the closing balance for the Retained earnings account for 2012 remove X from free selections P&L statmt acct type. Enter Chart of Accounts, Company code, G/L Account (retained earnings account), Fiscal Year and Report Periods.

Execute

Step 4 – Display G/L Account Balance

Using transaction FAGLB03 for new GL (FS10N for classic GL)

Enter Account number (Retained earnings account) , Company Code, Fiscal Year (balance carryforward fiscal year) and Ledger

 

Execute

 

This cumulative balance is correct i.e. (Value from step 2 and value from step 3: 15.307,52 + 176,42) = 15.483,94

 

 

Credit Control Area

An organizational unit that represents the area where customer credit is awarded and monitored.

This organizational unit can either be a single or several company codes, if credit control is performed across several company codes. One credit control area contains credit control information for each customer.

Credit control area is an organizational unit which checks the credit limit of the customer .One credit control area can include more company codes .That means the relation is one to many .

Define Credit Control Area: 

IMG – Enterprise Structure > Definition > Financial Accounting > Define Credit Control Area

T Code: OB45

Assign company code to credit control area:

IMG – Enterprise Structure > Assignment > Financial Accounting > Assign company code to credit control area

T.Code: OB38

Credit and risk management takes place in the credit control area. According to your corporate requirements, you can implement credit management that is centralized, decentralized, or somewhere in between.

• For example, if your credit management is centralized, you can define one credit control area for all of your company codes.
• If, on the other hand, your credit policy requires decentralized credit management, you can define credit control areas for each company code or each group of company codes.

Credit limits and credit exposure are managed at both credit control area and customer level.

Customizing settings in Credit Management:

1. Transaction OVFL

Check which credit control area is assigned to the sales area.

Sales area:

Credit control area:

2. Transaction XD02 or VD02

Check which credit control area is assigned to the payer.

Payer:

Credit control area:

3. Transaction SE37

Is user exit EXIT_SAPV45K_001 being used

4. Transaction OBZK

For the settings under items 2 – 4, field “All company codes” must be marked in Transaction OB45, or the credit control area must be entered under the relevant company code in table T001CM of the credit control areas allowed.

Company code:

Credit control areas allowed:

11. Define document groups for credit checking -T.Code: OVA6

The document credit group is used to combine different document types for the purposes of credit management processing.  As a standard part of the SAP system, documents are classified into three document groups:

1. Orders
2. Deliveries
3. Goods Issue

The custom document groups can also be defined here.  The document group is assigned to a document type (in transaction OVAK and OVAD, which are explained later).  The document group is used in conjunction with the risk category in the credit master data and the CCAr to define the automatic credit checks carried out by the system.

7. Transaction OVAD, “Assign document types to document group – Deliveries Types”

Define which delivery types are eligible for credit checking by assigning the credit check to the  document group.

Delivery type:

Credit group for delivery:

Credit group for goods issue:

8. Transaction OB01, Define Risk Categories.

Credit management/Change risk category

Definition of the risk category for each credit control area. This risk category can be assigned to a credit account by using Transaction FD32.

9. Transaction OVA8, Maintain Automatic credit control (individual credit checks for key fields)

Here, the individual credit checks for key fields

o credit control area

o risk category

o credit group are set. Take these key fields from the above settings and go to the detail

screen. In particular, check whether fields “Reaction” and “Status/block” are set correctly. To carry out follow-up actions in case of a credit block, the credit check status must be set (field “Status/block”).

10. Transaction FD32

Credit master data for the payer of the relevant document.

Credit account:

Credit limit:

Risk category:

Currency:

12. Transaction OVA7

Update of the credit value is active for the corresponding item type if the check box is marked. This field corresponds to

field “Active receivable” in Transaction VOV7.

Item type:

Active receivable:

13. Transaction V/08, Maintain pricing procedure for credit management

In the pricing procedure used for pricing, subtotal “A” must be entered in a line for determining the credit value (mark the pricing procedure and doubleclick on “Control”). Usually, the net value plus taxes is used. This way the system is determined to use this subtotal for credit pricing. The credit price is stored in field VBAP-CMPRE and used for update and credit check. You can find the used pricing procedure of the order under “Item -> Condition -> Analysis”.

Pricing procedure:

Line with subtotal = ‘A’:

15. Transaction OMO1, Updating: Sales Information structures

Check which kind of update customer has chosen for structure S066 (Open orders: credit mgmt)? In any case, “Synchronous update (1)” HAS to be chosen as the kind of update. All other settings will lead to errors.

Info structure S067 (Open deliveries/billing documents). This takes its values from S066.

SALES                ⇒         S066

DELIVERY        ⇒         S067

BILLING           ⇒         S067

Transaction: OB12 – Credit management groups (to group customers)

Freely definable grouping term used to group customers together.  Customers can be allocated to a credit group. All customers within a credit group are treated in the same way within credit management. The credit group is assigned to a CCAr.

Open and Close Posting Periods

You define posting periods in your fiscal year variants. You can open and close these posting periods for posting. As many periods as you require can be open for posting simultaneously.Usually, only the current posting period is open for posting, all other posting periods are closed. At the end of this posting period, the period is closed, and the next posting period is opened.Special periods can be open for closing postings during the period-end closing.

In addition to the regular posting period of 12 we have to define special posting period for year end closing. The maximum special posting period that you can define in SAP is 4.

Path:

IMG⇒ Financial Accounting (New)⇒ Financial Accounting Global Settings (New)⇒ Ledgers⇒ Fiscal Year and Posting Periods⇒ Posting Periods⇒ Open and Close Posting Periods.

T Code: OB52

 

⇒ click on “NEW ENTRIES”

Above screen contains following important fields, which are narrated below;

⇒Var.: Posting period variant. Enter here posting period variant that we have created in our earlier step. Here we have entered posting period variant “1900”

⇒A: Account type. All transactions in financial account divided into posting specific areas for convents. We use following account types in SAP.  1^st row of the above screen shows we have entered +. Here + represents allowed for types of accounts. In the subsequent rows we have entered specific account types.

⇒From acct: From account number. In this col. We can enter general ledger account number.

⇒To account: To account number. Along with from account number, general ledger entered in this col represents a range of general ledgers which is starting with from account number and ending with to account no.

⇒From per.1: Field to enter from period i.e. posting period. In this field we will enter a posting period from which we want to open posting period.

⇒Year: Field to enter year: here we can enter fiscal year for which we want to open posting period.

⇒To period: Field for to posting period. Along with from posting period to posting period form a range of posting period for which we want to enter posting periods.

⇒Year: Field from to year. Along with from year to year represent a range of year for which we want to open posting periods.

⇒From per.2: Field to enter from period 2 i.e. posting period. In this field we will enter a posting period from which we want to open posting period. Posting period 2 is used for the special posting period.

⇒Year: Field to enter year: here we can enter fiscal year for which we want to open posting period. This fiscal year is used for the special posting period.

⇒To period: Field for to posting period. Along with from posting period to posting period form a range of posting period for which we want to enter posting periods. Posting period 2 is used for the special posting period.

⇒Year: Field from to year. Along with from year to year represent a range of year for which we want to open posting periods. fiscal year is used for the special posting period

⇒click on “SAVE”

ASAP Methodology

ASAP stands for Accelerated SAP. Its purpose is to help design SAP implementation in the most efficient manner possible. Its goal is to effectively optimize time, people, quality and other resources, using a proven methodology to implementation. ASAP focuses on tools and training, wrapped up in a five-phase process oriented road map for guiding implementation.
The road map is composed of five well-known consecutive phases:
•        Phase 1 Project Preparation

•        Phase 2 Business Blueprint

•        Phase 3 Realization

•        Phase 4 Final Preparation

•        Phase 5 Go-Live and support

 

 

SAP-COPA: Source and Target Fields

Use: You enter the source and target fields for derivation in a derivation step.

Source fields:

You can use the following operating concern fields as source fields:

• All fixed characteristics
• All user-defined characteristics
• All characteristics copied from SAP tables or from the field catalog
• All characteristics copied from customer hierarchies (CO-PA HIE01 to HIE10)
• All quantity unit fields (CO-PA *_ME)

Target fields:

You can use the following fields as target fields for derivation:

• All user-defined characteristics
• All characteristics copied from SAP tables or from the field catalog
• All characteristics copied from customer hierarchies (CO-PA HIE01 to HIE10)
• Only the following fixed characteristics:
• Customer number (CO-PA KNDNR)
• Product number (CO-PA ARTNR)
• Business area (CO-PA GSBER)
• Profit center (CO-PA PRCTR)
• Sales organization (CO-PA VKORG)
• Distribution channel (CO-PA VTWEG)
• Division (CO-PA SPART)
• Plant (CO-PA WERKS)
• All quantity unit fields (CO-PA *_ME)
• Temporary fields (GLOBAL USERTEMP1 to GLOBAL USERTEMP8)

OKP1 – Period Lock

Purpose

Use this procedure to open or close the month on the Controlling module/ledger. This will allow or block postings to the CO ledger, including through posting from FI module. Period locks will be managed on the Controlling Period by the Financial Reporting office, based on when the Fiscal Month has been closed for financial reporting purposes.

There are separate CO period locks & Transaction locks for “Actual postings” and “Plan postings”. 

Trigger

Perform this procedure, together with the FI module close, to indicate the end of the fiscal month, according to the Month-end Closing schedule.

Prerequisites

Before closing a period, the user should make sure that all postings to the CO ledgers (including those originating from revenue & expense accounts into FI ledger) for the current month are completed by the Financial Reporting office and the User Departments. For this purpose, it is necessary to follow the month-end closing schedule, which would outline the sequence of the steps.

Menu Path

SAP menu ⇒ Accounting ⇒ Controlling ⇒ Cost Center ⇒Accounting  Environment ⇒ Period Lock  ⇒ OKP1 – Change

T Code: OKP1

period_lock_unlock

 

Maintain GR/IR clearing account

If there is a quantity variance between the goods receipt and the invoice for a purchase order, this results in a balance on the GR/IR clearing account. The system expects an additional goods receipt or an additional invoice to clear this balance. If this is not done, you must clear the GR/IR clearing account manually.

For a material subject to moving average price control, the offsetting entry for clearing the GR/IR clearing account is posted to the stock account (provided that there is sufficient stock coverage for the quantity difference):

⇒If there is a delivery surplus on the GR/IR clearing account, the material was debited with too high a value when the goods receipt was posted. When the GR/IR clearing account is cleared, the material is credited accordingly.

⇒If there is an invoice surplus on the GR/IR clearing account, the material was debited with too low a value when the goods receipt was posted. When the GR/IR clearing account is cleared, the material is debited accordingly

If there is insufficient stock coverage for this quantity, only the portion corresponding to the available stock is posted to the stock account. The rest is posted to a price difference account.

For a material subject to standard price control, the offsetting entry to clear the GR/IR clearing account is made to a price difference account. Thus, there are no value changes in the material master record.

⇒MR11 GR/IR clearing account and MR11SHOW Cancel/Display account maintaince in MM.

⇒F.19 is used to for GR/IR clearing in FI.

MR11-GRIR-Clearing-Account-Maintenance

Product Costing-SAP

 

PDF DOCUMENT – Product-Costing 

Accounts Payable Transaction Codes- SAP

Document Entry:

FB60 – Invoice
F-43 – Invoice – General
FB65 – Credit Memo
F-41 – Credit Memo – General
FB10 – Invoice/Credit Memo Fast Entry
FV60 – Park or Edit Invoice
F-63 – Invoice Parking – General
FV65 – Park/Edit Credit Memo
F-66 – Credit Memo Parking – General
F-47 – Request Down Payment
F-48 – Down Payment
F-54 – Clearing Down Payment
F-40 – Payment Bill of Exchange
FBW6 – Check/Bill of Exchange
F-52 – Incoming Payment
F-42 – Without Clearing
F-51 – With Clearing
F-55 – Statistical Posting
F-57 – Noted Items
FKMT – Account Assignment Model
FBD1 – Recurring Entry Document
F-01 – Sample Document
F-53 – Post Outgoing Payment
F-58 – Post + Print Forms for Outgoing Payment
F-59 – Payment Request for Outgoing Payment

Document

FB02 – Change
FB09 – Change Line Items
FB03 – Display
FB04 – Display Changes
FBV0 – Post/Delete Parked Document
FV60 – One-Screen Transaction for Posting/Deleting Parked Documents
FBV2 – Change Parked Documents
FV60 – One-Screen Transaction for Changes Parked Documents
FBV3 – Display Parked Documents
FBV4 – Change Header Parked Documents
FBV5 – Display Changes Parked Documents
FBV6 – Reject Parked Documents
FBD2 – Change Recurring Entry Documents
FBD3 – Display Recurring Entry Documents
FBD4 – Display Changes Recurring Entry Documents
F.56 – Delete Recurring Entry Documents
FBM2 – Change Sample Documents
FBM4 – Display Changes Sample Documents
F.57 – Delete Sample Documents
F-56 – Reverse Statistical Posting
F-46 – Reverse Check/Bill of Exchange
FBWD – Process Bill of Exchange Payable
FB08 – Individual Reversal of Document
F.80 – Mass Reversal of Documents
FBU2 – Change Cross-CC Transactions
FBU3 – Display Cross-CC Transactions
FBU8 – Reverse Cross-CC Transactions
FBZ5 – Print Payment Forms

Account

FK10N – Display Balances
FBL1N – Display/Change Line Items
F-44 – Clear
FB12 – Request Correspondence
F.64 – Maintain Correspondence

Master Records

FK01 – Create
FK02 – Change
FK03 – Display
FK05 – Block/Unblock
FK06 – Set Deletion Indicator
FK08 – Single Confirmation of Change
FK09 – List Confirmation of Change
FK04 – Display Changes
F.48 – Purchasing – Accounting
FK15 – Send Company Codes
FK16 – Receive Company Codes
XK01 – Create Centrally
XK02 – Change Centrally
XK03 – Display Centrally
XK05 – Block/Unblock Centrally
XK06 – Set Deletion Indicator Centrally
XK04 – Display Changes Centrally

Periodic Processing

SCMA – Schedule Manager
F110 – Payments Automatic
F110S – Schedule Payment Program Periodically
F.4A – Without Open Items Interest on Arrears Calculation
F.4B – With Open Items Interest on Arrrears Calculation
F.4C – Without Postings Interest on Arrears Calculation
F.47 – Free Selections Interest on Arrears Calculation
F.44 – Balance Interst Calculation Calculation
F150 – Dunning
F.13 – Automatic Clearing
F13E – With Clearing Currency Specified
F.61 – As per Requests Print Correspondence
F.63 – Delete Requests Print Correspondence
F.27 – Periodic Account Statements Print Correspondence
F.62 – Internal Documents Print Correspondence
SO10 – Enter Text Standard Letters
F.66 – Issue Letters Standard Letters
F.18 – Print Letters Balance Confirmations
F.1B – Create Index Balance Confirmations
F.1A – Group Vendors Balance Confirmations
F.14 – Execute Recurring Entries
F.15 – Lists Recurring Entries
S_ALR_87012114 – Bill of Exchange List
S_ALR_87012115 – Extended Bill of Exchange List with ABAP List Viewer
F.18 – Balance Confirmation: Print
F.1B – Balance Confirmation: Create Index
F.1A – Balance confirmation: Group vendors
FB2E – Cross-System Reconciliation of Affiliated Companies
F.05 – Valuation of Open Items in Foreign Currency
FAGL_FC_VAL – Foreign Currency Valuation of Open Items (New)
FJA4 – Inflation Adjustment of Open Items in Foreign Currencies
FJA6 – Inflation Adjustment of Open Payables in Local Currency
F101 – Reclassify Receivables/Payables
FAGLF101 – Sorting/Reclassification (New)
S_ALR_87012098 – Open Item Account Balance Audit Trail from the Document File
F.07 – Balance Carryforward

Withholding Tax

S_P00_07000134 – Generic Withholding Tax Reporting
S_PL0_09000447 – Withholding Tax Report for the Vendor

Information System

S_ALR_87012077 – Vendor Information System
S_ALR_87012082 – Vendor Balances in Local Currency
S_ALR_87012093 – Vendor Business
S_ALR_87012079 – Transaction Figures: Account Balance
S_ALR_87012080 – Transaction Figures: Special Sales
S_ALR_87012081 – Transaction Figures: Sales
S_ALR_87012078 – Due Date Analysis for Open Items
S_ALR_87012103 – List of Vendor Line Items
S_ALR_87012083 – List of Vendor Open Items for Printing
S_ALR_87012084 – Open Items – Vendor Due Date Forecast
S_ALR_87012085 – Vendor Payment History with OI Sorted List
S_ALR_87012104 – List of Cleared Vendor Items for Printing
S_ALR_87012105 – List of Down Payments Open On Key Date – Vendors
S_ALR_87012086 – Vendor List
S_ALR_87012087 – Address List
S_ALR_87012089 – Display Changes to Vendors
S_ALR_87012090 – Display/Confirm Critical Vendor Changes
S_P99_41000099 – Payment List
S_P99_41000101 – Check Register
S_ALR_87012119 – Cashed Checks
S_P99_41000102 – Number Ranges for Checks

P2P:

ME51N- Create Purchase requisition

ME21N-Creare Purchase Order

MIGO- Make Goods Reciept entry

J1IEX-Create Part 2 Excise Invoice

MIRO-Vendor Invoice

f110-Automatic Payment