SAP ERP Financial Accounting and Controlling: Configuration and Use Management

SAP ERP Financial Accounting and Controlling: Configuration and Use Management

by Andrew Okungbowa
Released June 2015
Publisher(s): Apress
ISBN: 9781484207161

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Book description

SAP ERP modules are notoriously hard to configure and use effectively without a lot of practice and experience. But as SAP ERP Financial Accounting and Controlling: Configuration and Use Management shows, it doesn't have to be so difficult. The book takes a systematic approach that leads SAP Financial Accounting and Controlling (FICO) users step by step through configuring and using all the program’s facets. This approach makes configuration complexities manageable. The book’s author—SAP expert, trainer, and accountant Andrew Okungbowa—ensures that both you and your end users are up and running quickly and confidently with FICO. He also provides sound and tested procedures that ensure your implementation works without error.

SAP ERP Financial Accounting and Controlling: Configuration and Use Management is in fact the most comprehensive and easy-to-follow SAP FICO configuration book in the market. It incorporates a hands-on approach, with hundreds of screen shots and practical examples, that allows a person without prior configuration training to make SAP FICO ready for use in the enterprise. You’ll find that you don’t need to be a rocket scientist to grasp the concepts explained and apply them to your work—even when the finances are complicated, such as with the ins and outs of taxes, currency conversions, or special general ledger entries such as down payments or bills of exchange.

Providing an in-depth coverage of both configuration and end user procedures, the book covers most aspects of the SAP FICO certification syllabus—SAP’s view of the module’s key tasks and procedures—including:

  • Configuring and using the general ledger and accounts payable and receivable screens
  • Configuring and completing closing procedures, asset accounting, and financial reporting
  • Configuring global settings and enterprise variables
  • Accounting for both profit and cost centers
  • Creating a house bank
  • Integrating FICO with other SAP modules

    • Taking a jargon-free tone and providing an abundance of examples, Andrew Okungbowa provides a clear understanding of configuration techniques and the breadth of functionalities encompassed by SAP FICO. And as an accountant, Okungbowa understands the needs of end users as well as of those answering to the CIO.

    Table of contents

    1. Cover
    2. Title
    3. Copyright
    4. Dedication
    5. Contents at a Glance
    6. Contents
    7. About the Author
    8. Acknowledgments
    9. Introduction
    10. Chapter 1: Customizing Organizational Structure in SAP ERP
      1. Organizational Structure
        1. The Client
        2. Company Code
      2. Let’s Start Customizing
        1. Define a Company
        2. Define a Company Code
        3. Assign Company Code to Company
      3. Business Area
        1. Define a Business Area
      4. Segment
        1. Define a Segment
      5. Fiscal Year Variant
        1. Year Independent
        2. Year Specific or Year Dependent
        3. Maintain Fiscal Year Variant
      6. Assign the Fiscal Year Variant to the Company Code
      7. Opening and Closing Posting Periods
        1. Define Variants for Open Posting Periods
        2. Assign Variants to Company Code
        3. Specify Open and Closing Periods
      8. Summary
    11. Chapter 2: Defining the Chart of Accounts
      1. The Chart of Accounts
      2. Create the Chart of Accounts
      3. Assign Company Code to Chart of Accounts
      4. Define Account Group
      5. Define Retained Earnings Account
      6. Summary
    12. Chapter 3: Document Control
      1. Document Control
        1. Document Type
        2. Posting Key
      2. Defining Number Ranges
        1. How to Display Number Intervals
        2. How to Delete Number Range Intervals
        3. How to Copy Document Number Ranges
      3. Understand and Manage Field Status Variants
        1. Define Field Status Variants
        2. Display Field Status Variants
        3. Assign Company Code to Field Status Variants
      4. Summary
    13. Chapter 4: Defining Tolerance Groups for G/L Accounts and Employees
      1. Tolerance Groups
      2. Define Tolerance Groups for G/L Accounts
      3. Define Tolerance Groups for Employees
        1. Define Default Tolerance Groups for Employees
        2. Define Tolerance Groups for Employees with a Group Key
      4. Assign Users to Tolerance Groups
      5. Summary
    14. Chapter 5: Creating a General Ledger (G/L)
      1. General Ledger
      2. What Is a Master Record?
      3. Creating G/L Account Master Records
        1. Create a G/L Account: Office Supplies
        2. Create a G/L Account (Called Office Expenses) Using a Template
        3. Display G/L Accounts
      4. Summary
    15. Chapter 6: Clearing Open Items
      1. Clearing Open Items
        1. Manual Clearing Overview
        2. Prepare Automatic Clearing
      2. Create Accounts for Clearing Differences
        1. Define a Maximum Exchange Rate Difference
      3. Checking the Company Code Settings
      4. Foreign Currency Valuation
        1. Exchange Rate Types
        2. Define Valuation Methods
      5. Prepare Automatic Postings for Foreign Currency Valuation
        1. Exchange Rate Difference Using the Exchange Rate Key (KDB)
        2. Exchange Rate Differences for Open Items/GL Accounts
        3. Exchange Rate Difference for Open Items–Account Payable
      6. Summary
    16. Chapter 7: Maintaining Currency Types and Currency Pairs
      1. Currencies
      2. Exchange Rate Types
      3. Define a Standard Quotation for Exchange Rates
      4. Enter Prefixes for Direct / Indirect Quotation Exchange Rates
      5. Define Translation Ratios for Currency Translation
      6. Enter Exchange Rates
      7. Summary
    17. Chapter 8: Defining Adjustment Accounts for GR/IR Clearing
      1. GR/IR Clearing
      2. Invoiced But Not Yet Delivered
      3. Delivered But Not Yet Invoiced
      4. Summary
    18. Chapter 9: Defining the House Bank
      1. House Bank
      2. Define House Banks
      3. Define Bank Accounts for Your House Banks
      4. Bank Statements
        1. Electronic Bank Statement
        2. Make Global Settings for Electronic Bank Statements
        3. Configure a Manual Bank Statement
      5. Check Deposits
        1. Define Posting Keys and Posting Rules for Check Deposits
        2. Create and Assign Business Transactions
        3. Define Variants for Check Deposits
      6. Summary
    19. Chapter 10: Defining Tax on Sales and Purchases
      1. Sales and Purchases Tax
      2. Basic Settings
      3. Define Tax Codes for Sales
      4. Define Tax Accounts for Sales
      5. Define Tax Codes for Purchases
      6. Define Tax Accounts for Purchases
      7. Assign Taxable Codes to Non-Taxable Transactions
      8. Summary
    20. Chapter 11: Customizing a Cash Journal
      1. Cash Journal
      2. Create G/L Accounts for a Cash Journal
      3. Specify the Amount Limit for a Cash Journal
      4. Define Number Range Intervals for Cash Journal Documents
      5. Set Up the Cash Journal
      6. Create, Change, and Delete Business Transactions
      7. Set Up Print Parameters for the Cash Journal
      8. Summary
    21. Chapter 12: Financial Statement Versions (FSV)
      1. Financial Statement Versions
      2. Define Financial Statement Versions
        1. Step 1: Create Items
        2. Step 2: Reassign Items as Subordinates
        3. Step 3: Assign FSV Nodes to G/L Accounts
        4. Step 4: Define the Credit/Debit Shift
      3. Check Assigned G/L Accounts to FSV
      4. Summary
    22. Chapter 13: Integration of FI with Other SAP ERP Modules
      1. Integrate FI with Other SAP Modules
      2. Material Management (MM)
        1. Configure Automatic Postings
      3. Sales & Distribution (SD)
        1. Prepare Revenue Account Determination
      4. Summary
    23. Chapter 14: Defining FI Accounts Receivable and Accounts Payable
      1. Accounts Payable and Accounts Receivable
      2. What Is a Customer Account Group?
        1. Define Account Groups with Screen Layout (Customer)
        2. Maintain the Field Status Group for the General Data of the Customer Account Group
        3. Enter Accounting Clerk Identification Code for Customers
        4. Create Number Ranges for Customer Account Groups
        5. Assign Number Ranges to Customer Account Groups
      3. What Is a Vendor Account Group?
        1. Define Account Groups with Screen Layout (Vendors)
        2. Enter a Accounting Clerk Identification Code for Your Vendors
        3. Create Number Ranges for Vendor Accounts
        4. Assign Number Ranges to Vendor Account Groups
        5. Terms of Payment
        6. Installment Plan
      4. Defining a Cash Discount Base for Incoming Invoices
      5. Incoming Invoices/Credit Memos Enjoy Transactions
        1. Defining Document Types for Enjoy Transactions
        2. Defining Tax Code per Transaction
      6. Defining Accounts for Net Procedures
      7. Defining Accounts for Cash Discounts
        1. Defining Cash Discounts Granted
        2. Defining Account for Cash Discount Taken
        3. Defining an Account for a Lost Cash Discount
        4. Defining Account for Overpayments/Underpayments
      8. Manual Outgoing Payments
        1. Define Tolerances for Vendors
        2. Define Reason Codes for Manual Outgoing Payments
        3. Define Accounts for Payment Differences (Manual Outgoing Payments)
      9. Automatic Outgoing Payments
        1. All Company Codes
        2. Paying Company Codes
        3. Payment Methods in Country
        4. Payment Methods in Company Codes
        5. Bank Determination for Payment Transactions
        6. Bank Accounts
      10. Sort Methods and Adjustment Accounts for Regrouping Receivables/Payables
        1. Define Sort Methods
        2. Define Adjustment Accounts for Receivables/Payables by Maturity
      11. Adjustment Posting/Reversal
        1. Permit Negative Postings
        2. Define Reasons for Reversal
      12. Summary
    24. Chapter 15: Defining the Dunning Procedure and Correspondence
      1. Dunning
        1. Define the Dunning Area
        2. Define the Dunning Procedures
      2. Correspondence
        1. Define Correspondence Types
        2. Assign Programs to the Correspondence Types
        3. Define Sender Details for a Correspondence Form
        4. Determine Call-Up Functions
        5. Define Reply Addresses for Balance Confirmation
      3. Summary
    25. Chapter 16: Customizing Special G/L Transactions
      1. Special G/L Transactions
        1. Technical Factors
      2. Down Payments
        1. Down Payment Received
        2. Down Payment Requests (Customer)
        3. Define Account for Tax Clearing (Customer Down Payments)
        4. Down Payment Made
        5. Down Payment Requests for Vendors
        6. Define Account for Tax Clearing (Vendor Down Payments)
      3. Guarantees
        1. Define Alternative Reconciliation Accounts for Customers (Guarantees)
        2. Define Alternative Reconciliation Accounts for Vendors (Guarantees)
        3. Define Accounts for Automatic Offsetting Entry
      4. Summary
    26. Chapter 17: End User - Accounting Document Posting
      1. Customer/Vendor Master Record
        1. Create Customer Master Record
        2. Create Vendor Master Record
      2. Accounts Receivable—Document Entry
        1. Customer Invoice Posting
        2. Posting a Credit Memo
      3. Holding and Parking Documents
        1. Holding Documents
        2. Calling Up a Held Document
        3. Parking Documents
        4. Parking/Editing a Document
      4. Incoming Payments
        1. Posting a Standard Incoming Payment
        2. Posting a Partial Payment
        3. Posting Residual Items
      5. Customer Down Payments
        1. Posting a Customer Down Payment Request
        2. Posting Customer Down Payments
        3. Clearing Customer Down Payments
      6. Display Account Balances
        1. Display Customer Account Balances
      7. Display Line Items
        1. Display/Change Customer Line Items
      8. Correspondence
        1. Request Correspondence
        2. Print Correspondence
      9. Execute Dunning
        1. Display Dunning Details
        2. Print Dunning
      10. Accounts Payable—Document Entry
        1. Vendor Invoice Posting
      11. Manual Outgoing Payment
        1. Outgoing Payment
      12. Automatic Payments
        1. Check Lots
        2. Automatic Payment Program
      13. Use the Cash Journal
        1. Cash Receipts
        2. Cash Payments
      14. Summary
    27. Chapter 18: Customizing the Controlling Module
      1. The Controlling Module
        1. General Controlling
        2. Organizational Controlling
      2. Cost Element Accounting
        1. Make Default Settings for Automatic Creation of Primary and Secondary Cost Elements
        2. Create Batch Input Session
        3. Execute a Batch Input Session
        4. Primary Cost Element
        5. Secondary Cost Elements
      3. Cost Center Accounting
        1. Define the Standard Hierarchy
        2. Create Cost Center Group
        3. Use Statistical Key Figures
        4. Change Activity Output/Prices Planning
        5. Compare Cost Centers: Actual/Plan/Variance
      4. Profit Center Accounting
        1. Basic Settings
        2. Maintain Controlling Area Settings
        3. Create Dummy Profit Center
        4. Set Control Parameters for Actual Data
        5. Maintain Plan Versions
        6. Define Standard Hierarchy for Profit Centers
        7. Define Profit Center
        8. Define Number Ranges for Local Documents
        9. Assign Profit Centers to Cost Centers
      5. Posting Controlling Documents
        1. Display Line Items
        2. Profit Center: Interactive Reporting
      6. Distribution
        1. G/L Account Posting
        2. Display Actual Cost Line Items for Cost Centers
      7. Summary
    28. Chapter 19: Customizing New General Ledger Accounting
      1. New General Ledger
        1. Leading Ledger
        2. Non-Leading Ledger
        3. Define Ledgers for General Ledger Accounting
        4. Define Currencies of Leading Ledger
        5. Define and Activate Non-Leading Ledgers
      2. What Is a Scenario in General Ledger Accounting?
        1. Assign Scenarios and Customer Fields to Ledgers for Leading Ledger
        2. Define Ledger Group
      3. Accounting Principles
      4. Real-Time Integration of Controlling with Financial Accounting
        1. Assign Variants for Real-Time Integration to Company Codes
        2. Account Determination for Real-Time Integration
      5. Document Types
        1. Define Document Types for Entry View in a Ledger
        2. Define Document Types for General Ledger View
      6. Document Splitting
        1. Classify G/L Accounts for Document Splitting
        2. Classify Document Types for Document Splitting
        3. Zero-Balance Clearing Account
      7. Posting General Ledger Accounting Documents
        1. Enter G/L Account Documents
        2. Enter G/L Account Document for Ledger Group
      8. Reverse Document
      9. Document Display
      10. Closing
        1. Foreign Currency Valuation
        2. Balance Carry Forward
      11. Summary
    29. Appendix A: Useful General Ledger Accounts
      1. Chapter 5
        1. General Ledger
      2. Chapter 6
        1. Automatic Clearing Differences
        2. Foreign Currency valuation
      3. Chapter 8
        1. GR/IR Clearing
      4. Chapter 9
        1. House Bank
        2. Bank Statement
      5. Chapter 10
        1. Tax on Sales/Purchases
      6. Chapter 11
        1. Cash Journal
      7. Chapter 13
        1. Integration of FI with Other Modules
      8. Chapter 14
        1. Terms of Payment
        2. Define Sort Method and Adjustment Accts to Regrouping
      9. Chapter 16
        1. Special G/L Transaction
        2. Down Payments
      10. Chapter 19
        1. New General Ledger
    30. Appendix B: Some Useful Transaction Codes
      1. FI
        1. End User: Accounting Document Posting
      2. Controlling
    31. Index

    Product information

    • Title: SAP ERP Financial Accounting and Controlling: Configuration and Use Management
    • Author(s): Andrew Okungbowa
    • Release date: June 2015
    • Publisher(s): Apress
    • ISBN: 9781484207161