Define Tolerance Groups For Employees

Significance: This step helps us pre-determine various amount limits for the employees with which we can set: a) The  maximum document amount the employee is authorised to post. b) The maximum amount the employee can enter as a line item in a vendor/customer account. c) The maximum cash discount percentage the employee can grant in [...]

Define Tolerance Groups For GL Accounts

Significance: Tolerance Group is used to maintain control over posting of transactions and their clearing. T-Code: OBA0 Path: SPRO>IMG>Financial Accounting>GL Accounting>Business Transactions>Open Item Clearing>Clearing Differences>Define Tolerance Groups for GL Accounts The steps to be followed are: Choose “New Entries” from Application Bar. Enter the data for fields shown in the screenshot above and choose “Save“.

Define Retained Earnings Account

Significance: Retained Earnings account defines the (P&L Account) to be sued for posting the expenditure and incomes of the year. The balance of this account appears as Reserves & Surplus in the Balance Sheet for the year. T-Code: OB53 Path: SPRO>IMG>Financial Accounting>GL Accounting>GL Accounts>Master Records>Preparations>Define Retained Earnings Account The following steps have to be followed: [...]

Define Account Groups

Significance: Account Groups controls the Master records. It controls the number range of Master record and Field status group (Supress, Required, Optional and Display) also. SAP follows a Grouping principle all throughout SAP to handle the Master Records that may be in GL, AR AP any thing. Note: SAP allows a maximum of 10 digits [...]

Assign Company Code To Chart Of Accounts

Significance: In this step we specify which chart of accounts we are going to use for our company. Since there are already a huge number of pre-defined chart of accounts, we can either choose from those, or assign one that we have custom-created. Only one chart of accounts can be assigned to one company. T-Code: [...]

Define Chart Of Accounts List

Significance: Chart of Accounts List refers to the list of all GL account numbers. It defines the set of accounts within which the transactions of the company will take place. A cahrt of accounts list can be assigned to any number of companies, however one company can have only one chart of accounts list. T-Code: [...]

GL Structure – Index

After the initial customisations regarding the enterprise structure, the next set of customisations involve customising the GL Structure. In this set of steps, we will be customising items relating to fundamental items of the General Ledger that define the broad outline within which the financial activities of the company will be conducted.   The following [...]

Assign Company Code to Financial Management Area

Significance: In this step we assign our company code to the financial management area we have created(or vice versa). By doing this we are enabling the Cash Flow & Funds Flow Management features for our particular company. T-Code: Path: SPRO>IMG>Enterprise Structure>Assignment>Financial Accounting>Assign Company Code to Financial Management Area The following steps should be followed: Use [...]

Define Financial Management Area

Significance: Financial Management Area is a customisation that helps to work on Cash Flow & Funds Flow Management. Without this customisation these features will not be activated. T-Code: Path: SPRO>IMG>Enterprise Structure>Definition>Financial Accounting>Maintain Financial Management Area The following are the steps to be followed: Select “New Entries” on the Application Bar. Enter the details required on [...]

Assign Business Area To Consolidation Business Area

Significance: In this step we assign the various business areas that we want under a particular consolidation area under that particular consolidation business area. It must be noted that a business area can be assigned to more than one consolidation business area in order to enable better reporting and controlling activities. T-Code: Path:SPRO>IMG>Enterprise Structure>Assignment>Financial Accounting>Assign [...]

Define Consolidation Business Area

Significance: This is another controlling tool like Business Area, but on a much larger scale. A consolidation business area is a consolidation of a number of business areas that satisfy certain geographic or demographic criteria(for example, belong to the same state, country, continent, etc. or belong to business areas in cities only/villages only etc.). This [...]

Define Business Area

Significance: A business area is a method of controlling wherein accounts can be maintained unit-wise so that each area can be evaluated as a separate business entity and their relative profitability and contribution to the overall figures can be measured. A business is usually a city/town of operation or an independent store/outlet of the company [...]

Assign Company Code to Company

Significance: In this step, we assign the company code we have created for our company. This ensures that whenever the company code is required to be quoted for any transactions, the resultant entries get passed to our company. T-Code: Path: SPRO>IMG>Enterprise Structure>Assignment>Financial Accounting>Assign Company Code to Company The following are the steps: Click on Position [...]

Define Company Code

Significance: The company code is the single most important of all the fundamental definitions in the enterprise structure customisation. The company code is the identifier by which a company is referred to in all its transactions. It is an independent accounting entity with 4 numeric characters(although the maximum size fixed for it is 4 digits, [...]

Define Company

Significance:- This is the first step that is customised in FI. In this step, the company and company related parameters are defined. Transaction Code(T-Code): OXO2 Path: SPRO>IMG>Enterprise Structure>Definition>Financial Accounting>Define Company Note: Click on any image to enlarge(since the images are of very high resolution you might have to zoom in to see the image in [...]

Enterprise Structure – Index

Enterprise Structure customisation comprises of steps required to customise the settings that affect the Financial and certain other aspects of the entire organisation, i.e. steps that have an enterprise-wide effect. These are the first steps that are carried out before any other steps can begin. The following Enterprise Structure steps will be dealt with as [...]

Consolidated Index of Posts

The following topics will be covered in the blog presently, 1. Enterprise Structure 2. GL Structure 3. Global Structure 4. GL Transactions 5. Accounts Payable 6. House Bank 7. With Holding Tax 8. Accounts Receivable 9. Interest Calculation 10. Bills of Exchange 11. Dunning 12. Tax on Sales/Purchases 13. Automatic Payment 14. Cash Journal 15. [...]