Introduction

There may be cases where the user is interested to maintain reports as per their requirement. Sometimes user may want to maintain layout with the document currency and transaction currency and sometimes user may want to have the invoices with cash discount, assignment or text fields to display with the document line item display.

Enter Selection Parameters

Transaction FBL1N and execute.

You can see in application toolbar there are three icons () used for managing report layout.

A) Change Layout (first icon ):

                        This icon will be used for changing layout of the currently executed report. Here you can change the different fields to display or hide.

Select ‘Document Currency’ and ‘Purchasing document’ fields from Column Set and select show selected fields button as showed above screen. Click on OK button (Green Tick Box).

Here you can see additionally added columns to report.

B)  Save Layout (Second Icon):

Save Layout by pressing on Save layout button from application toolbar and specify layout name starting with / slash (/PONO). If you want to make this layout as default whenever you execute this report select ‘Default setting’ check box or if you want to use this layout only for yourself please select ‘User-specific’ check box.

C) Select Layout (third icon):

                      If you want to select existing layout to see the report as required. Please select ‘Select Layout’ button.

Please select required layout and Click on OK button (Green Tick Box).

Making Layout as Default Layout:

Select ‘Settings -> Layout -> Administration' from the menu bar.

Select ‘Default Setting’ row from the required layout and save.

You can change any layout as default layout by select layout administration default settings.

Kind Regards,

Prasad

Introduction:

There is a possibility of generating duplicate DME files from payment run where user select check box for ‘Create payment medium’ at the time of payment proposal and payment run. If the user approves from the BACSTELL (third party) by mistake, the extra file will go to bank and payment may happen twice. This is a company goodwill issue and there is a loss of payment.

Scenario Explanation:

Payment Run: F110

1. User selected ‘Create Payment medium’ check box at the time of proposal.

2.  As per the instructions in user guide, user selected again ‘Create payment medium’ at the time of ‘payment run’.

3. ‘Schedule print’ for remittance advices.

4. Check from the menu: Environment -> Payment medium -> DME administration

5. Here you will see there are two DME files generating which business not expecting.

How to avoid this situation(extra file):

There are two ways to avoid generating duplicate DME files from the payment run.

1. Avoid selecting ‘Create payment medium’ check box at the time of proposal and payment run. DME will generate directly from the ‘print Schedule’ for remittances with variant.
2. Removing activity 15 on authorisation object ‘F_REGU_BUK and F_REGU_KOA’.

Avoiding selection of ‘Create payment medium’ check box at the time of proposal and payment run:

Duplicate file can be avoided by not selecting ‘Create payment medium’ check box at the time of proposal and payment run. Required DME file will generate at the time of ‘print schedule’ directly through the assigned variant in the print program. Disadvantage of this option is ‘Create payment medium’ field appear at the time of proposal and payment run and there is a possibility of user select this option.

Remove activity 15 on authorisation object ‘F_REGU_BUK and F_REGU_KOA’:

      This option removes the ‘Create payment medium’ check box at the time of payment proposal. The ‘Create payment medium’ check box available only at the time of ‘payment run’ and it will create single DME file from the payment run and print schedule.

The below screen shows how payment proposal screen appear after removin

Thanks & Regards,

Prasad

Hi

This document has details on how to activate Terms of Payment while posting a Non invoice related Credit memo

Regards

Praveen

Introduction:

       There will be a requirement to change posting date to system date or actual posting date for parked documents.  Parked documents may go to error when posting date is in previous period. To avoid the situation where documents going to error, we need to change the configuration to allow parked document posted in the closed period. You set the indicator that changes the posting date to the system date. You then park a document. A week later you complete the document and post it. The system changes the posting date to the current system date. If changing the posting date results in a new fiscal year, the system keeps the posting date as it is.

     This document explains the configuration for parked document posting date changes when user post.

Configuration Path:

Configurationindicates what posting date system uses when parked documents processed to approve or post.

Configuration Options:

There are 3 configuration options available in order to maintain the posting date for posted documents from parked status.

Assign required option (as per requirement) from the above to your company code.

Scenario Explanation:

                  The posting date will change based on the option assigned for the company code.

a) ‘ ‘ blank(Posting date is not changed during posting): If you select ‘ ‘ (Blank) for your company code in OBD1. The posting date won’t change from parked status to post. If you select this option document won't change posting date.When user try to post in the closed period system through a error or if workflow activated, workflow task go to error.

Configuration in OBD1

Scenario example:

  Transaction FV60 (Park vendor invoice in previous month)

Approve from the FBV0 or If you activated workflow, from the portal.

Transaction FBV0 (approve parked document/post)

Check posted document posting date, posting date won’t change.

b) 1 (Posting date is changed to system date): Once approver approves from the portal or manual approve/post from FBV0, the posting date will change to the system date. With this option posting date won't change in any situation.

Configuration in OBD1.

Scenario Example:

Transaction FV60 (Park vendor invoice in previous month)

Approve from the FBV0 or If you activated workflow, from the portal.

Check posting date, posting date will change to system date.

c) 2 (Same as 1 only if the posting period is closed): This option works same as option ‘b’ when posting period is closed. This means if the posting date of the document is closed then actual posting date will change to system date. If the period is in open then posting date won't change and it will post same as parked document posting date.

Configuration in OBD1

Scenario Example:

  Transaction FV60 (Park vendor invoice in previous month)

Posting period closed after parking the above document. Period will be closed once month end activities over and there will be some parked invoices which are not processed in the month end activities. In this case system can’t post in the closed period. So, posting date should change to current date. If the posting date in the open period then document will post in the same date from the parked document.

OB52 posting period changed

FBV0 or Portal to approve or post parked document.

Post Document.

Check posting date for the document, the date should be changed to system date since parked document posting period closed.

You can see that posting date got changed to system date.

If the posting period is in open then posting date won't change and document will post in the previous period.

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Thanks & Regards,

Prasad

Hi All, This is a small attempt at helping to change the header rows in above standard reports.

Its a very minor change but ignored many a times. Hope this will be helpful to the new guys in FICO.

By default the report will show the output like below for open items in FBL1N. Here you will not have information like the report generation date or open items date which based on which the report is generated. These are important information for any financial information if you print the data or send out to someone.

There is a option to customize this to business needs. For ex to include report generation date and Open item as of date, please follow below steps.

Step 1. Go to settings > Layout > Current header rows

Step 2: Insert new lines wherever required and update the label name like in this case "Report generated date:" and "Open item as of date"

Under Gen. Variables you can see the various options available. In our case its date of Output.

Step 3: Add text for Open items as of date and this will be a characteristics relate variable. A lot of options will be available here.

Step 4: You can add more fields like address lines for vendors, contact details etc. After that Save the changes.

Step 5: Now the report will be generated with updated fields. You can also save different headers for different layouts also.

Regards....

In a Normal Business scenario, business issues Credit memos also in addition to Normal Invoices. Credit memos are normally issued if an invoice is already been sent to a customer and at later point of time, some part of the amount is to be credited back to Customer. The various reasons for the same can be -

1. Customer returned some or complete part back to Business.

2. Customer paid excess amount

3. Business, by mistake, charged the customer with excess amount and thus, returning it back by issuing credit memos etc.

The Dunning Program in SAP behaves in a different fashion for credit memos and Normal invoices. This doucment tries to explain the credit memo dunning functionality with appropriate examples.

1. Introduction

Dunning, in Lehman Term, is a reminder notice to customer for the payment which has not been received by the business for its services and is overdue. In case of vendors, dunning notices are issued if there is an advance payment made to the vendor for supplying the material and the same has not been received on the delivery due date.

A Credit memo in general term is a transaction to reduce the amount receivable from the customer. It is normally issued if an invoice is already been sent to the customer and at a later point of time, some part of the amount is credited back to the customer.

2. How Dunning Level is determined in SAP for Credit memo

Credit memos can be issued against an invoice or it may be issued alone to refund the amount back to customer.

• In case of Invoice related Credit Memos, the dunning level is determined from the dunning level of the invoice, provided that the invoice is entered in the invoice reference field in Credit memo line item and the dunning run is carried out for both the invoice and the credit memo together. When Dunning is carried out in this case, the dunning level of the invoice is being considered for dunning and is assigned to the credit memo.
• The Non- invoice related Credit memos consider the highest dunning level of the same customer account they have been posted to and are included in the same dunning run. In other words, if a non - invoice related credit memo is dunned with other invoices of the same customer, the credit memo gets dunned with the highest dunning level achieved in this run.

3. Different scenarios for credit memo dunning

Below are the different scenarios and messages which appear when credit memo dunning is done.

A Credit Memo is posted for an account in a co. code

A) Scenario 1

If the Credit Memo (WIthout invoice reference) is dunned alone, it will be dunned with dunning level 0 and the following message appear

Credit Memo has new dunning level 0. WIthout Invoice reference.

This is because, in this particular run, no other invoices are included for this account.

As can be seen above, only credit memo is dunned in this dunning run, hence, it has take dunning level 0.

B) Scenario 2

If the same Credit memo (Without invoice reference) is dunned along with other items of the same customer, it will be dunned with the highest level achieved in dunning. If the highest dunning level achieved is e.g. 2, the following message will appear

Credit Memo has new Dunning level 2. Without Invoice reference

As can be seen in the screenshots above, there are invoices with both dunning level 1 and 2 for the same customer acocunt, however, the credit memo has considered the dunning level 2 (i.e. highest dunning level in this particular run).

C) Scenario 3

If the credit Memo (With Invoice reference) is dunned along with the invoice reference, it will be dunned with the dunning level of invoice in dunning run. If the dunning level of invoice is e.g. 1, the following message will appear

Credit Memo XXXXXXXX has new Dunnning level 1. Invoice reference YYYYYYYY

Credit memo with invoice reference posted

Credit memo # 6851000003

Credit Memo # 6851000001

As can be seen in the dunning log below, invoice 6801000015 is also included in the dunning notice. Hence the credit memo 6851000003 has picked the dunning level of original invoice 6801000015 i.e. dunning level 2.

For Credit memo 6851000001, the original invoice is not included in the dunning run. Hence it has picked the highest dunning level of the account in the dunning run i.e. 2.

D) Scenario 4

If the same Credit Memo (With Invoice reference) is dunned alone, the following message will appear.

Credit Memo XXXXXXXX with invoice reference YYYYYYYY is not in the dunning proposal.

Credit Memo XXXXXXXX has new Dunning level 0. Without Invoice Reference.

As can be seen in the above shown dunning log, because the credit memo is dunned alone without Invoice reference, it has taken the dunning level 0.

E) Scenario 5

Credit Memos and Invoices of different customers are included in the same dunning run with different dunning levels.

As can be seen in the above two screenshots from dunning log, customer account 0132261009 and 0992000011 have been included in the dunning run.

For account 0132261009, the highest dunning level is 2. Hence the credit memo is also dunned with dunning level 2 (If the credit memo is with invoice reference and this reference invoice is also included in the run, credit memo would have taken the dunning level of the invoice)

For acocunt 0992000011, the credit memos are dunned with dunning level 1- the highest dunning level of this account in the dunning run.

F) Scenario 6

In order for the dunning program to take credit memo payment terms in to account, the credit memo must either be reference to an invoice, or the credit memo must be entered with specific due date.

In the former case, the credit memo will be due with the due date of the reference invoice.

For the later, alphabet V needs to be entered in the invoice reference field. The credit memo in this case is due once the baseline date and maximum number of days specified have been exceeded.

e.g. for the below invoice related credit memo, the memo is due with the due date of the reference invoice 2900000023

For the non- invoice related credit memo, the payment term will be considered by the dunning run if the letter V is entered in the invoice reference field and the memo willbe due once the baseline date and maximum number of days specified have been exceeded.

As can be seen in the above scrrenshots, the letter V is entered in Credit Memo Invoice reference field and the due date gets calculated as 22.09.2011 (i.e. it considered the payment term)

For the same credit memo, if the letter V is not entered in invoice reference field, the payment term is not considered for due date calculation (as can be seen in the screenshots below).

Based on this due date, the documents are then considered in the dunning run.

So, in a nutshell, when dunning the credit memos, either they should be referenced to an invoice and the reference invoice should also be included in the dunning run so as to get the same dunning level as invoice. Else, the credit memo will be dunned with the highest dunning level of the account included in the dunning run. When dunned alone, the credit memo takes dunning level 0.

This documnet will explain archiving of FI documents from configuration to, write, delete and retrival of data. This will be helpful for users to understand basics of SAP Data Archiving.

Problems with Large volume and growth of data:

• Expensive Storage System
• Reduced System Performance and Increased Query Time
• Complex Database Administration i.e. Backups, Client Copy and Upgrades
• Manpower Productivity Loss

Data Archiving: The Concept

• Writing Data in Flat Files to External Storage
• Deleting Data from Online Database
• Retrieving Achieved Data

FI Documents Data Archiving Example

Archiving Object used: FI_DOCUMNT

Object Description:  The most important object in financial accounting is FI_DOCUMNT. It assumes special status with respect to data growth, data security, and conformity with legal requirements.

Tables Associated:

AOBJ Configuration:Archiving Object configuration is done in AOBJ T. Code. Specific configuration is done with respect to the archiving object FI_DOCUMNT.

Maximum file size set as 100 MB and Maximum number of Data Objects as 10.

Document lifetime configuration:

The document type life period can be maintained using OBR8 & OBR7.

Here, we have maintained 2196 days i.e. 6 yrs. That means past 2196 days data from current date will not be available for archiving.

SARI configuration

The Archive Information System (transaction SARI) will allow configuring archive information structure. It is only possible to access archived data if such an info structure exists and has been filled.

1. a. Info set Name

SAP_FI_DOC_001 will have to be used for FI_Document object. As this info structure already exists we just need to select it and activate it.

1. b. Info Set activation

In order to able to use an info structure we need to first activate it. Only after an info structure has been activated can it be filled with data from the archive and evaluated. However activate info structures can no longer be modified.

SARA Configuartion

1. 1) To Fiscal Year/Period : 1995 01 to 1998 12

1. Variant Configuration

Click on Maintain button.

For example in selection only one document number is given. However during actual implementation actual fiscal year and period range will be provided

Note:

“Complete” in detail log and “List and Application Log” in Log Output will be selected to see detailed log output of write job.

Enter description of variant and save it.

1. Write Mode

We will first run write job with test mode variant and then will run with production mode variant.

Select immediate for Start date selection and save it.

Select desired printer to print spool, and hit the green tick mark.

Click on execute button and a job will be scheduled.

1. Delete mode

The delete program reads the archived documents in the archive file including the corresponding table entries, and deletes the corresponding records from the database however FI secondary indices are only marked for deletion they are deleted by post processing program.

Select Delete Tab.

Maintain archive selection, start date and Spool Parameters. Select the session name.

Click on execute button, a job will be scheduled. See the status of job by clicking on job button.

SARI Read Mode

During the delete phase of data archiving, all active info structure belonging to an archiving object are automatically filled with data from respective archive file. On basis of the defined infostructure , the archive information system filters the data from the data records in the archive and inserts it into the generated database table together with the achieve file key and the offset of the business object.  These entries will serve as a basis for subsequent search.

1. Info set Read

Click on Archive Explorer and give Archive infostructure name.

Fill company code, document number and fiscal year selection fields.

Click on execute and see the document.

Standard Report/Transaction code to fetch data from archived file:

Introduction: Today I had a simple request from the business asking that no credit items should be shown in customer statements being printed via F.27

Solution: In program RFKORD10/11 you can use the posting key selection criteria for SAP to show only certain items.

Introduction: Business said we want to see only statements with positive numbers. Meaning if the customer has debits and credits on account, we only want to print statements if there is a positive balance on the account.

Solution: In program RFKORD10/11 use the 'Balance in Local Currency' field to show the range in amounts from 1 to 99999999. This way any 0 or credit statements will not show up.

What is Lockbox?

Lockbox is a service provided by multiple banks, wherein the payment for Customer invoices are received in mail and they are directed to a special post office box. This post office box is known as lockbox. The Post Office Box is obtained by the Bank. The Bank picks up the payments from the post office box and deposits them into company’s accounts.  A separate notification is also sent by the bank to the company of the deposits made to it’s accounts.

Companies open Lockbox accounts with their Banks and inform the same to their customers. The customers than send their checks to the lockbox. The Bank collects the receipts and informs the company. There are several distinct advantage of this process when mapped in SAP:

1.       Accelerates collection and deposit of checks to Bank Accounts

2.       Internal processing costs are reduced

3.       Greater automation of the Collection process

4.       Easy Reconciliation of Payments from Customers

Lockbox Process in SAP

The process in SAP follows creation of a direct interface or an upload of an electronic file from the Bank into SAP. The Steps can be listed as under:

The configuration steps for Lock Box in SAP involve:

1.   1.  Defining House Banks

     The House Bank can be created from the customization path or through the transaction code FI12.

After the House Bank have been set up identifying each of the banking partners of the company, it is required to set up individual accounts with the Banking Partners in SAP. This is done through creation of Account ID for a specific House Bank. This is done in Transaction Code FI12.

1.      2. Define Lockbox Account – The next step for customizing for lockbox is to define the lockbox accounts. This is done in the below customizing path:

IM  

           IMG-Financial Accounting-Bank Accounting-Bank Accounts-Define Lockboxes for House Banks

    The customizing transaction code for the same is OB10.

1.    3. Control Parameters – The next step for lock box customization is to define the format of the electronic file which would be received from the Bank. Only BAI  and BAI2 files are supported by standard SAP. However, enhancement spots are available for other EDI Formats. The customizing path for the same is as under:

          IMG-Financial Accounting-Bank Accounting-Business Transactions-Payment Transactions-Lockbox-Define Control Parameters

          The customizing transaction code for the same is OBAY.

1.      4.  Posting Data – There is an additional configuration node for maintaining the parameters for processing of lockbox data and generation of automatic postings. The same is maintained in the customizing path:

IMG-Financial Accounting-Bank Accounting-Business Transactions-Payment Transactions-Lockbox-Define Posting Data

The customizing Transaction code for the same is OBAX.

Lockbox File

The lockbox file is governed by standards of Bank Administrative Institute (BAI). BAI and BAI2 are the two standards supported by SAP, though BAI2 is the most widely used format. Two specific programs are used in SAP to process electronic files from Banks in these formats:

-          RFEBLB00 for BAI Format

-          RFEBLB30 for BAI2 Format

The lock box file in BAI2 format contain various record types. The various record types details are as under:

Record Type 1 – Header

Record Type 2 – Service

Record Type 5 – Detail Header Record

Record Type 6 – Detail Record

Record Type 4 – Overflow Record

Record Type 7 – Batch Total Record

Record Type 8 – Lockbox Total Record

Record Type 9 – Trailer Record

The lockbox file is processed in SAP using Transaction Code FLB2 (Program RFEBLB00). The file should contain all the required details to process the data successfully. The Key details include lockbox origin and Destination Number, date, lockbox no, invoice number and amount, customer account number etc. A typical Lockbox file would look like:

1.       5. Processing Lockbox Files – The lockbox file is fed into SAP using the Transaction code FLB2. In the transaction code, specify the path of the input file along with the checkbox for PC Upload.

Once the file has been processed successfully, the output will contain details like GL Document No, AR Document No, Status of lock box file and checks etc.

Every processing through Lockbox will update the posting area 1 & 2, which is the updation of the GL Document and the AR Document as well. Sometimes, it is required to post process the lock box files as well. This happens when the automatic clearing does not happen in cases such as multiple invoices of same amount, invoice details missing in the lockbox file etc. This activity of post processing happens through transaction code FLB1.

Key Concept

The Investment Management module is closely linked to FI/CO modules and provides management of large scale capital investments. This module provides simultaneous cost accounting and asset accounting sides of capital investment. The investments are managed in the form of overhead cost (Work Breakdown Structure) and links to an AUC. These WBS are the primary CO Objects which can be settled on a periodic basis to AUCs. The WBS element with its AUC can be termed as Investment Measure.

In simple terms, AUC is created to accumulate all the cost that belongs to an asset during the construction phase. The cost is accumulated to a WBS and can then be transferred to an AUC.

Asset under Construction does not have any Depreciation as these are considered as partial assets and hence are not capitalized.  After the desired cost or value is transferred from the WBS to AUC, the value residing in the AUC can be transferred to a Fixed Asset which can then be capitalized.

Setup Process

Create Investment Measure Asset Class

The stepping stone for the process is creating an Investment Measure Asset Class. When we say we are creating an Investment Measure Asset Class it means that Assets for this class cannot be created manually/directly using AS01, ABZON or with any other transaction, assets for this class can only be created automatically with WBS of type AUC.

                              Figure 1: Asset Class Configuration

Account determination of asset class

GL Accounts will be assigned to the investment measure asset class. Please note that only Balance Sheets accounts will be defined for an Investment Measure Class but there would be no Deprecation Accounts, as this class will not have any depreciation.

                                          Figure 2: Balance Sheet Accounts

                                  Figure 3: Depreciation Accounts

Define Depreciation for AUC Class

AUC Asset Class do not depreciate and to make this happen we need to create a Depreciation Key which will charge zero depreciation and assign this key to the various Depreciation Areas in the Asset Class. Also, the layout for this asset class should be different from the layout for a normal asset class. SAP has a predefined layout for AUC Classes.

The AUC Asset Class will have zero depreciation which allows the cost to be collected and posted to a GL account, recognized as capital expenditures and can be capitalized at the desired time.

                                                    Figure 4: Setting Depreciation Key

Create Investment Profile - OITA

Another major step is creation of an Investment Profile. This is the component which controls the creation of assets under construction for Investment Measure. The Investment Measure Asset Class created will be assigned to this Investment Profile.

                     Figure 5: Investment Profile Setting

Create Allocation structure - OKO6

Allocation structure decides which Settlement Cost Element would be the Receiver when the cost is settled to an AUC in other words to which cost element and the corresponding GL account the cost from the AUC WBS will be transferred (More details will be given later in the Settlement Process). Two major components in the allocation structure are defined to handle this process; Source and Settlement Cost Element.

• A Source can be a range of Cost elements or a Cost element group.

                                                    Figure 6: Defining Source

• A Settlement Cost element is defined for the Cost element group defined above in Figure 6. In case if the sender of the cost (Cost Element) lies in the Cost element group defined above then the receiver of that cost will be Settlement cost element 79330000 defined below.

                                                     Figure 7: Settlement Cost Element    

Create Source Structure - OKEU

• A Source can have several source assignments like Capital, Expenses, etc and each of which can have a range of Cost elements or a Cost Center group which are settled using the distribution rules.
• For instance if there are more than one type of cost then we need to have a Source Structure defined.
• If there is a need to generate more than one AUC for a WBS then we have to check the box ‘AUC per source structure’ in (Figure 5).

                                   Figure 8: Source Structure

                                        Figure 9: Cost Element Group Defined for an Assignment

Create Settlement Profile and Assign the Allocation structure - OKO7

Settlement Profile is mainly used to define distribution rules (details will come later in the settlement process) which indeed can be used to determine the Receiver Asset (This would be a Fixed Asset to which Final settlement from AUC to Fixed Asset will take place) and the amount or percentage to be settled to that receiver.

                                         Figure 10: Settlement Profile Configuration

Create Project Profile and Assign Investment Profile and Settlement Profile - OPSA

The linkage between the WBS and the Investment Measure Class is created here; Investment Profile created in Figure5 is assigned to the Project Profile. The Investment Measure Assets Class which is assigned to the investment Profile links to the WBS with this assignment.

                                Figure 11: Project Profile Configuration

Create Pojects and WBS elements of type AUC with the Project Profile

The WBS is created with the Project Profile created above. When checked in the WBS master table PRPS the Investment Profile will be updated as the one created and the type of the WBS would be AC.

When this WBS is released i.e. the status of the WBS changes to RELthen automatically an AUC is created (which belongs to the investment measure asset class as seen in Figure 14below) linked to this WBS. This linkage can be seen in the Asset Master of this AUC in the Origin Tab, the WBS element will be defined.

                                            Figure 12: Creating Project

                            Figure 13: Creating Work Breakdown Structure

Figure 14: Asset Created After Releasing the AUC WBS

Postings on this WBS

Postings to this WBS will be done i.e. various costs will be booked to this CO Object. The document(s) will have one or more line items with this WBS of type AUC.

                                 Figure 15: Posting to AUC WBS

Settlement Process

Maintain Settlement Rule - CJIC

The settlement rule is created for the WBS which will have fields like:

• Category: Would be FXA
• Fixed Asset Number
• Percentage of the value to be transferred to the Fixed Asset

                          Figure 16: Distribution Rule

         Figure 17: Fixed Asset defined in the Distribution Rule

Automatic Settlement - CJ88

The automatic settlement through this transaction ensures that the value or cost sitting in the WBS will get transferred to the AUC and actual posting of the documents takes place.

Please note that the cost/value from WBS to AUC can be transferred till the WBS is closed.

Figure 18: CJ88 Screen for Automatic Settlement

4 Accounting documents/objects are created when the WBS is automatically settled. Please note that receiver would be the Settlement Cost Element defined in Figure 7.

                                Figure 19: Output Screen of the Settlement

                                  Figure 20: Distribution Rules Applied

First document is an FI document which actually depicts how the cost is transferred from WBS to an AUC.

                 Figure 21: FI Posting Document After Settlement

• One of the line item would be a Debit to the recon account of AUC mentioned in the account determination of AUC asset class in Figure 1.
• The other line item will be a credit from the account which is derived based on the allocation structure of settlement cost elements for WBS with Investment Measure (Figure 6 and Figure 7).In the allocation structure different settlement cost elements are defined for a group/range of cost elements. Let me take an example to clarify this point. The GL account mentioned in the line item having AUC WBS when the initial postings are done (Figure 15)on the WBS will have a corresponding Cost element. Now this cost element will have a corresponding settlement cost element which is defined in the allocation structure (Figure 7). So now this settlement cost element will be picked and the GL account corresponding to this settlement cost element will form the account from which the credit of the value will take place.
• So, the document will have one debit line item to recon account of AUC and the other will be a credit line item from the GL account corresponding to the settlement cost element derived based on the allocation structure.

The second document is a Profit Centre document which will update the ledger balance corresponding to the profit centre for the AUC type WBS. The profit centre corresponding to the AUC type WBS can be seen from WBS master table PRPS.

                                     Figure 22: Profit Center Document

The third object/document shows the asset transaction having the transaction type used by which the AUC’s value is updated. For instance TType 116 – Internal Settlement to AUC is used.

                                  Figure 23: Asset Transaction Document

The last document is a controlling document which demonstrates the primary cost posting for the controlling object, which is AUC type WBS in this case.

                                           Figure 24: Controlling Document

Full Settlement - CJIC

After the AUC has the desired value or completed we can transfer the value/cost to a Fixed Asset with what is called Full Settlement. After this is executed the value/cost sitting in AUC will be transferred to the Fixed asset based on the Settlement Rule created above (Figure 16)in CJIC.

    Figure 25: CJ88 Screen for Full Settlement

3 Accounting Documents/Objects are created in Full Settlement.

                         Figure 26: Output Screen After Full Settlement

                             Figure 27: Distribution Rules Applied

First document is an FI document which depicts how the value is transferred from AUC to a Fixed Asset.

               Figure 28: FI Posting for Full Settlement

• One of the line item would be a Debit to the recon account of Fixed Asset mentioned in the account determination of the Fixed Asset (Figure17).
• The other line item would be a credit from the recon account of AUC mentioned in the account determination of the AUC Asset Class.

The second document/object shows 2 asset transactions which will have the transaction type used by which the AUC’s value is transferred to Fixed Asset. For instance TType 336 – Amount is credited from the AUC and TType 339 - Amount is debited to the fixed asset.

                                  Figure 29: Amount Credited From AUC

                                  Figure 30: Amount Debited To Fixed Asset

The last document is a controlling document which demonstrates the primary cost posting for the controlling object, which is the Default Cost Center in the Asset Master of the Fixed Asset as shown in Figure 32.

                                           Figure 31: Controlling Document

Figure 32: Default Cost Center of Fixed Asset

Conclusion

Now after all the cost is transferred to Fixed Asset then the depreciation can be charged according to the Depreciation Key defined for the Fixed Asset.

Below is the Flowchart for End to End process so as to recap what was explained in the paper.

                                   Figure 33: Flowchart of End to End Process

Legacy System Migration Workbench (LSMW) is handy tool for data uploads. In most of the big projects there is a separate development / data migration team is available. However, at times, it would be responsibility of the functional consultant to load the data such as vendor master, customer master and asset master etc. It would be real handy for a functional consultant to know LSMW (at least recording method) and it would help them to successfully complete the task. Hope this document would help many of our functional consultants, as I am seeing number of questions around LSMW. The simple rule is: Follow this document and practice is for number of times possible, then you will become master.

Go to Transaction Code "LSMW" and follow the following steps:

Give some Unique name for Project, Subproject and Object. Click Create (Shift+F1). Now execute or press CTRL+F8.

Give the description for Project, Sub Project and Object and say OK. Now execute or press CTRL+F8.

Select Maintain Object Attributes and Execute (CTRL+F8)

Click Display / Change (it will make you to change). Select the Radio Button Batch Input Recording. Now click on  “Goto” –
Recordings Overview. Click on Create Recording (Ctrl+F1).

Click OK

Give Required Transaction Code (In this case it is FK01)

Create Vendor or Make changes for Entering Withholding tax details in the Vendor.

Press Enter

C

Press Enter

Click on Save Button.

Recording is saved now. Click on “Default All” Button.

Click
Ctrl+Y, a + will come. With this, you can drag and copy whatever you want.  In case if any field is appearing twice you
need to change the field name by double clicking on that. Otherwise, your uploading will get failed.

Copy
the fileds to an excel file. 

Remove the Blank Rows.

Now the field name and descriptions are in one Column. I.e., “A”. You need to
segregate that. To do that, select Column “A” and Select in Excel “Data” – Text
to Column as shown in the following graph.

Now Select the fixed with and say “Next”.

Select Fixed Width and click next.

Keep columns wherever you want by clicking.

Now say Next and then again say “Finish”. Now all fields and texts are divided into two Columns.

Now copy the fields and texts as shown in the Sheet1 (Ctrl+C)

Go
to Sheet2

Keep
the cursor in the Sheet 2 (A1) and then

Edit,

Paste
Special

Check
in Transpose as shown below and say OK.

Now all your rows will become your columns as shown in the blow Screen.

Now
fill the required details exactly as shown below. You should note that you have
to enter ‘0001 for payment method instead of 0001, since if you straight enter
0001 it will become 1, therefore you must ensure whenever it is starting with
“0” should be preceded with ‘.

Now
select the whole sheet2.

Remove
all grids.

No colors should be there in the sheet.

No letter should be typed in different colors. All are in normal color only.

Keep the columns to “LEFT” Margin.

Now,

Format
=> Cells => Number => General as shown in the following screenshot.

Now say OK.

Now copy the whole Sheet2 and paste it in the Sheet3.   Then
delete the header rows as shown below:

Save
this file to your Hard Disk with a simple name. In this case I saved as Vendor.

Now
go to “SAVE AS” in Excel, and

Save
as Text (Tab Delimited) as shown in the above screen shot.

Click on OK button as shown below.

Click on "YES" button as shown below.

Now, Click on "NO" button as shown below.

Press F3 or Click on Back Button.

Now, Click on "YES" to save.

You will reach the below screen.

Again, press F3 or click on back Button.

Click
F4 in the Recording Button, your structure will be populated. In this case it
is “VENDRECO”.

Now click on Save on Ctrl+S to save your recording.

After saving your recording click Back button or press Ctrl+F3 to go back.

Now you will observe that few steps have been disappeared. Only few steps are left
out. This is because of the recording mode that you have been selected. Ideally
there should not be any Idoc related steps should be visible.

Now Step1 is being completed and the system automatically takes you to second step.
Now press CTRL+F8 or Executed.

Click on Display / Change Button or press Ctrl+F1

Now create a Structure by clicking “Create Structure” or Ctrl+F4.

Give Source Structure Name and Description

Your Source Structure Name and Description is shown. Click on Save button

Now Press F3 or Click back button to go back.

Now the second step is completed and system automatically takes you to third step.

Click CTRL+F8 or Press Execute Button, which will take to maintain source fields.

Click on Display / change as shown above OR press Ctrl+F1.

Now press on Table Maintenance as shown above by keeping your cursor on the Source
Structure (in blue color in the above screen shot).

Copy those Fields from Sheet1 and copy it here. (from your excel file)

In case if your fields are came twice in recording, none of the field should be
similar. As already advised that change the field names to different field
names. Whatever, field names that you have changed in the structure should also
appear here. Meaning that in case these fields does not map with your changed
fields in your Structure, uploading will fail.

Enter the Field Type as “C” – Characteristic and Length as 60. If you know the length
enter the exact length. If you do not enter the maximum length 60. You should
not enter the length less than the actual length of the field.

Say “Save”.

Press "Enter". Save the results and Press
F3 or Click on back button to go back.

Now Click Save in this screen and again press F3 to go back.

Now system will automatically takes you to fourth screen.

Click CTRL+F8 or Click on Execute Button.

Select the Structure and click on Display / change button or press Ctrl+F1

Click on Relationship (Ctrl+F4)

Though
it is customary step, you should go to this step. And say OK for the message
that the system has issued. “A source structure is already assigned to target
structure VENDRECO”.

Now press Save and PressF3 or Click on back button to go back.

 
It will take you to the next screen automatically.

Press CTRL+F8 or Click on Execute Button.

In the above screen, select the structure and then click display / change or (Ctrl+F1).

Again Select the Structure,

Go select the auto filed mapping as showing above in the above screen shot.

Say “OK” with this 50 number screen. Do not make any changes.

Keep on Pressing “Accept Proposal” for all the proposal as shown above.

Your entire field mapping should appear as above. Each field should have four rows as above.

Once it is being completed the system issues a statement that “Auto Field Mapping is completed”

Click Save (Ctrl+S) and go back (F3).

Nothing to do with “Maintain Field Values, Transactions, User Defined Routines”

Now Go to “Specify Files” Screen Manually and press “Ctrl+F8” or Execute Button.

Select the first row and click on Display / change Button.

Now Click on Add Entry “Ctrl+F2” as shown above.

Select the “TEXT (Tab Delimited)” file that you have already created and say Open.

Your file has come and Enter some relevant “Name”

Select “Tabulator” Radio Button and say OK.

Now Save (Ctrl+S) and press F3 or Back Button to go back.

Now the system will take you to next step i.e., “Assign Files”. Press Ctrl+F8 or
press Execute Button.

Select Source Structure (as shown in blue colour above) and press Display / Change
Button (Ctrl+F1).

Click on Assignment  (Ctrl+F2)

Though it is a customary step, you need to visit this step compulsory. The system will
issue a message stating that “A file has already been assigned to source
structure “VENDOR_RECORDING”. Say Ok. 

Click on Save (Ctrl+S) and Press F3 or click on back button.

The system will take you to next step i.e., “Read Data”. Click on Execute or Press Ctrl+F8.

Remove the Checks for

Value
Fields -> 1234.56

Date
Value -> YYYYMMDD as shown above. There should not be any check in the above
two check boxes.

Now
Click on Execute (F8)

The system will tell that total 8 records are being read.

Now Click on Back Button or press F3 TWICE, which will take you to initial screen.

Now the system takes you to next step “Display Read Data”

Click on Execute or Press Ctrl+F8.

Here you give the number of lines in your text file and say OK.

Click on Any one row and see whether the fields in SAP and columns in your Text File
are matching.

Once you are satisfied that everything is matching and going fine, press F3 or Click
on Back button TWICE, which will take you to initial screen.

Now you are automatically in “Convert Data” Screen.

PressCtrl+F8 or Click on Execute Button.

Just press F8 or Execute Button.

The following screen will appear. See the screen and press Back Button (F3) twice,
which will take you to initial screen.

Now the system will automatically takes you to “Display Converted Data”.

Press Ctrl+F8 or Click on Execute Button.

Enter the number of lines From 1 to 8 in this case, to see how it is showing in
Converted Data and Say Ok. (Click on Rite Tick).

Click on any one of the converted data line and see how the data is going.

If you are satisfied that everything is going fine, then Click on Go back button
(F3) TWICE, which will take you to initial screen.

You will be automatically taken to “Create Batch Input Session”.

Click Ctrl+F8 or press “Execute” Button.

Select "Keep Batch input Folder(s)?

Just Click on Execute Button (F8).

One Batch input session will be created. The system will state that “1 batch input
folder with 8 transactions created” will be issued. Say OK. (Click Right),
which will take you to initial screen.

Click Ctrl+F8 or Press on Execute Button.

Now you are in SM35 Screen. Select the line that is being created to upload and
press Execute (F8) button as shown above.

Select “Background” Radio Button.

Check in:

Extended log

Expert Mode

Dynpro Standard Size

As shown above and the click on “Process” button.

See the log and click on Line, if there are any problems in your log.

Click on back button (F3) to come out of the session FOUR TIME, which will take you
to Easy Access Screen.

Go to Report
“S_ALR_87012086”

Now You are Viewing the vendor records that you are uploaded. You can also follow
the same steps for Change also.

Please let me know if you have any doubts.

At times, it is a Business or a regulatory requirement to implement the usage of pricing up to 4 decimal points in SD Pricing Procedures. The standard currencies like EUR or USD allow for decimal notation up to 2 decimal places only.

Workaround

The workaround for the same is to have a new currency defined. This would be an internal currency type and currency conversion would have to be maintained at the condition level configuration. The steps involved are as under:

1. Creation of a new internal currency type – The first customization required is the definition of a new internal currency type. Let us take an example, where the document and local currency is EUR and we would need to define a new internal currency type, say EURL.  

The customization path for the same is as under:

IMG-SAP Netweaver – Currencies – Check Currencies Code

The transaction code for the same is OY03

1.  

1. Set the Decimal places for the new internal currency type which has been created. The customization path for the same is:                                                                

IMG – SAP Netweaver – Currencies – Set Decimal Places for Currencie

The customization transaction code for the same is OY04

1.      2. Condition Type – Suppose the condition type PR00 is used to maintain the sales pricing in 4 decimal places. However, as a default the net value of a sales document must be calculated in 2 decimal places, it is necessary to activate currency conversion in the condition type customizing.

The path for the same is as under:

IMG-Sales & Distribution-Basic Functions-Pricing-Pricing Control-Define Condition Types-Maintain Condition Types

The transaction code for the same is V/06

A customizing would be required to take care of exchange rate conversions and also to avoid rounding errors.  We have created an alternative formula 900 and assigned it to pricing condition type PR00 in the pricing procedure:

form frm_kondi_wert_900.

  check: xkomv-waers='EURL' and komk-waerk='EUR'

  data: xkbetr like xkomv-kbetr

  xkbetr=xkomv-kbetr

  if komp-shkzg ne space

     arbfeld=xkbetr*-1

     xkebtr=arbfeld

  endif

  arbfeld= xkomv-kawrt * xkbetr/xkomv-kpein

  arbfeld=arbfeld/100000

  xkwert=arbfeld

  xkomv-kkurs=komp-kursk

endform

The IMG Path is as under:

IMG- Sales & Distribution- Basic Functions-Pricing – Pricing Control- Define and assign Pricing Procedure – Maintain Pricing Procedure

The transaction code for the same is V/08

1.       3. Changes for the output – By default, both currencies EURL and EUR would be printed in the output. However, ABAP Program changes would have to be done to ensure that the output is printed in EUR with amounts from EURL.

Depreciation Calculation Methods

Various depreciation calculation methods are mentioned below:

i.  Base Method

ii. Declining Balance Method

iii. Maximum Amount Method

iv. Multi Level Method

v. Period Control Method

i.     Base Method

Base Method- SPRO> IMG> Financial Accounting (New)> Asset Accounting>Depreciation> Valuation Methods> Depreciation Key> Calculation Methods>Define Base Methods

Base method primarily specifies:

• The Type of depreciation  (Ordinary/ Special Depreciation)
• Depreciation Method used (Straight Line/ Written Down value Method)
• Treatment of the depreciation at the end of Planned useful life of asset or when the Net Book value of asset is zero (Explained in detail later in other related transactions ).

Straight Line Method (SLM)

• This is the simple method of depreciation.
• It charges equal amount of depreciation each year over useful life of asset.
• It first add up all the costs incurred to bring the asset in use and then it divides that by the useful life of asset in years to calculate the depreciation expense.
• E.g.: Say a Computer costs Rs. 30,000 and Rs. 11,000 (as additional set-up/installation/maintenance expenses) = Rs 41,000 and it is anticipated that its scrap value will be Rs. 1,000 at the end of its useful life, of say, 5 yrs.

Total Cost = Cost of Computer + Installation Exp. + Other Direct Costs

Depreciable Amount over No. of years = Total Cost - Salvage Value (At end of useful life)

30,000 +11,000 =41,000 (Total cost)

41,000 – 1,000 = 40,000 as the Depreciable Amount

Depreciable Amount = Rs. 40,000, Spread out over 5 years = Rs. 40,000/5(Yrs) = Rs. 8000/- depreciation per annum.

Written Down Value Method (WDV)

• This method involves applying the depreciation rate on the Net Book Value (NBV) of asset. In this method, depreciation of the asset is done at a constant rate.
• In this method depreciation charges reduces each successive period.
• This method should be used in those assets, where high depreciation should be charged in initial years.
• Assume the price of a depreciable asset i.e. computer is Rs. 40,000 and its salvage value after 10 years is 0.
• In this method NBV will never be zero.

Depreciation Per year = (1/N) Previous year's value, Where N= No. of years

So in our example, the depreciation amount during the first year is

[Rs. 40,000*1/10] =Rs.  4,000

NBV of computer after 1^st year= Rs 40,000- 4,000 = Rs. 36,000

Depreciation for 2^nd year is 

[Rs. 36,000*1/10] =Rs. 3,600

ii.     Declining Balance Method

       Enter Transaction code AFAMD- Change View “Declining Balance Method”

AFAMD- Change View “Declining Balance Method”- SPRO> IMG> Financial Accounting (New)> Asset Accounting>Depreciation> Valuation Methods> Depreciation Key> Calculation Methods> Define Declining-Balance Methods

This is the other name of Written Down Value (WDV) method as mentioned in Base method above.

If the WDV method is specified in Base method then the following additional settings in this method can be used:

• A multiplication factor for determining the depreciation percentage rate. The system multiplies the depreciation percentage rate resulting from the total useful life by this factor.
• A lower limit for the rate of depreciation. If a lower depreciation percentage rate is produced from the useful life, multiplication factor or number of units to be depreciated, then the system uses the minimum percentage rate specified here.
• An upper  limit for the rate of depreciation.If a higher depreciation percentage rate is produced from the useful life, multiplication factor or number of units to be depreciated, then the system uses the maximum percentage rate specified here.

iii.     Maximum Amount Method

Maximum Amount Method- SPRO> IMG> Financial Accounting (New)> Asset Accounting>Depreciation> Valuation Methods> Depreciation Key> Calculation Methods> Define Maximum Amount Method

Generally, If we uses Straight line method, then depreciation amount should be same for all years. But depreciation on asset is subject to change due to many factors e.g. any addition to the asset, change in estimate of useful life, change in estimate of scrap value etc.

So for maintaining better control on the amount of depreciation, SAP has provided this method where we can specify the maximum amount that can be charged as expense in a particular year. If this is specified, user will not be able to post depreciation exceeding the amount specified here.

iv.       Multi Level Method

       Enter Transaction code AFAMS- Change View “Multilevel Method”

AFAMS- Change View “Multi Level Method”- SPRO> IMG> Financial Accounting (New)> Asset Accounting>Depreciation> Valuation Methods> Depreciation Key> Calculation Methods> Define Multi Level Methods

As the name itself suggests, this method provides the flexibility to specify different rate of depreciation for different years/periods. E.g. in some cases depreciation rate required is different in initial years and after that the rate should be changed.  This can be achieved in SAP by using Multi level Method.

In this method, SAP provides us the possibility to  specify different levels during the useful life of an asset. Each level represents the period of validity of a certain percentage rate of depreciation. This percentage rate is then replaced by the next percentage rate when its period of validity has expired. We can specify the validity period for the individual levels of a asset  in years and months.

It also provides the flexibility to us to choose the defined validity period, which can begins with

• The capitalization date.
• The start date for ordinary or tax depreciation.
• The original acquisition date of the asset under construction.
• The changeover year.

v.       Period Control method

       Enter Transaction code AFAMP- Maintain Period Control Method

AFAMP- Maintain Period Control Methods”- SPRO> IMG> Financial Accounting (New)> Asset Accounting>Depreciation> Valuation Methods> Depreciation Key> Calculation Methods> Maintain Period Control Methods

It is one of the most relevant method to keep control on the calculation of depreciation. Here we mention the different rules for periods in case of different scenarios for assets. This method controls the period for which the depreciation is calculated on an asset during the year.

Under this method, we can specify the period for which the depreciation should be calculated in case of :

• Acquisition of Asset/Subsequent acquisition
• Retirements/Scrap
• Sales/Transfers
• Upward/Downward Revaluation

There are some standard methods that has been provided by SAP e.g. Pro rata at

mid period, Pro rata at period start date, at the start of year or At mid year etc. E.g., If client requires to depreciate an asset from the First day of the year in which the asset is capitalised, we can use the method `At the start of the Year` in case of Acquisition.

This method has been explained with the help of one comprehensive example below:

Example: A company wants to charge depreciation as follows. Client follows calendar year from January-December 2013 as

Accounting/Fiscal year.

1.   In case of Asset Acquisition: Depreciation should start from the First day of the year in which asset is acquired.

2.   In case of Asset Addition: Depreciation should start from the Ist day of period  of date of addition.

3.   In case of Asset retirement: Depreciation should be charged upto Mid period regardless of date of retirement.

4.    In case of Asset Transfer: Depreciation for the full year should be charged by the transferee company.

After having knowledge of all the depreciation calculation methods, we can assign the depreciation calculation methods to the depreciation key.

Creation of Depreciation key:

• Asset accounting module of SAP calculates the depreciation on Assets based on the configuration done for Depreciation key. Depreciation Key basically contains the calculation methods which in combination control the following:

  • Period for which Depreciation is charged
  • Method of Depreciation
  • Scrap value, if any
  • Planned change in Method of Depreciation

We enter a separate depreciation key for each depreciation area in the asset master record.

     Creating Depreciation Key:

Enter Transaction code AFAMA- Change View “Depreciation Key”

                 AFAMA- Change View “Depreciation Key”- SPRO> IMG> Financial Accounting (New)> Asset Accounting>Special Valuation> Net Worth Tax>Depreciation Key>Define Depreciation keys

As depreciation key is Chart of  Depreciation dependent, system will prompt to enter chart of Depreciation on accessing transaction AFAMA and screen shown below will be displayed.

Here, we need to specify the following at appropriate fields\check boxes:

• No./Name  of Depreciation key Numeric/Alphanumeric.
• Maximum Amount method (Discussed above in methods of depreciation)
• Cutoff value key to control the scrap value if no absolute scrap value is maintained in the system. The cutoff percentage rate that is determined on the basis of this cutoff value key is only used by the system when:
  • There is no absolute scrap value entered in the the depreciation areas of the asset concerned (an absolute scrap value takes precedence over a cutoff percentage rate)
  • Negative book value is not allowed for the asset

• Whether ordinary depreciation should continue to be charged in a year in which special depriciation is also charged on the asset or not?
• Set `Depreciation to the day` indicator to allow system to calculate the depreciation according to the number of days the asset is used.

If this indicator is set, period control method assigned to depreciation key will be ignored and Asset value date will be considered as the depreciation start date.

Assignment of Depreciation Calculation Method to Depreciation key:

      Select The depreciation key and click on Assignment of Calculation methods. Now  assign different methods to depreciation key.

Introduction

Credit management is the management of credit facility granted to customers as credit exposure allowed. Credit facility is just like telling our customers that they need not pay immediately, they can pay at a future point of time after receiving the goods or services. But, this payment at a future point of time involves risk. So, according to the risk foreseen, the amount and time of credit (Credit Exposure) granted changes. For some customers, the risk perceived may be high such that we may demand payment in advance.

This credit management comes partially under preview of Sales and Distribution (SD) and partially of Account Receivables (AR).

Key challenge: Reducing credit risk without hampering the supply chain.

Dealing with Bad Debt: Before getting involved, ask yourself:

• How do I react to a bad debt?
• Do I block orders from important customers, or do I grab a phone?
• What is the volume of blocked orders my F&A department can handle?
• Can I afford to block customers (small customer base)?
• What do I save?
• What is the cost in terms of damage?

Credit Management in SAP

Assuming that we already have SD and AR implemented, credit management can be broadly used to:

• Assign credit limit to customers
• Facilities like the credit master sheet or early warning list help you monitor the customer’s credit situation
• Automatic credit limit checks as well as to specify the points at which they have to be carried out

Automatically alert the credit representative of a customer’s critical credit situation as soon as order processing starts and he may be able to check a customer’s credit situation quickly and reliably, and, in line with the appropriate credit policy, to decide whether the customer should be granted credit.

Credit Check

Every customer is having a certain credit limit, which is measured and maintained by Finance people. Credit check is done for each and every order/SD documents generated.

Credit check is performed at the following stages of Sales order cycle, Credit check settings present in each SD document is responsible for interacting with FI module.

Figure 1:Stages of Credit Check

Configuration Setting

Define Risk Category

SPRO > Financial Accounting > Account Receivable and Accounts Payable > Credit Management > Credit Control Account > Define Risk Categories

Figure 2:Define Risk Category

Define Credit Control Area

SPRO > Enterprise Structure > Definition > Financial Accounting > Define Credit Control Area

Figure 3:Define Credit Control Area

Figure 4:Define Credit Control Area - Details

The type of update chosen controls when the values of open sales orders, deliveries and billing documents are updated depending upon the type of document being generated. One of the following update groups can be chosen as available in standard SAP

• Blank – If the field is left blank, the SD documents are ignored and only open receivables and open special G/L items are used for calculating credit exposure.
• 000012 – When a new order is created, the open order value is added to the credit exposure. When the order is delivered, the open order value is subtracted and the open delivery value added to the exposure. On billing the delivery, open delivery value is subtracted and the open billing value is added to the exposure. When billing posts to accounting, the open billing value is subtracted and the open A/R value added to the exposure. The exposure is finally reduced when the cash is applied against open A/R.
• 000015 – Calculates exposure without considering open sales order value. When the order is delivered, the open delivery value is added to exposure. On billing the delivery, open delivery value is subtracted and the open billing value is added to the exposure. When billing posts to accounting, the open billing value is subtracted and the open A/R value added to the exposure. The exposure is finally reduced when the cash is applied against open A/R.
• 00018 – This is relevant for non-delivery-relevant orders only. When a new order is created, the open delivery value is added to the credit exposure. When the order is billed, the open delivery value is subtracted and the open billing added to the exposure. When billing posts to accounting, the open billing value is subtracted and the open A/R value added to the exposure. The exposure is finally reduced when the cash is applied against open A/R.

Note: SAP recommends the use of update group 000012

Organizational Unit in Credit Management

The organizational unit used in credit management is Credit Control Area. It represents the area where customer credit limits are specified and monitored.

Depending on the relationship between credit control area and company code, the credit management can be categorized as:

• Decentralized credit management

Every company code has its own credit control area. Hence, we can define credit limits for a customer separately for each company code. This method delivers benefits such as the local payment cultures can be respected, each company code has the independence to make its own decisions.

• Centralized credit management

Multiple company codes are clubbed under the same credit control area. So, if the customer transacts with company codes which are under the same credit control area, the limit is set for all the company codes combined together.

If the currencies of these company codes are different from that of the credit control area, the receivables are converted to the credit control area currency to check with the credit limit set. Centralized credit management has benefits such as easier analysis of credit policy and modifications required, the focus is shifted to other important areas such as bad debt reductions and improved customer relations as there is only a central credit team that needs to be consulted irrespective of the geography etc.

Figure 5: Organisational Unit in Credit Management

Assigning Company Codes to a Credit Control Area

SPRO > Enterprise Structure > Assignment > Financial Accounting > Assign Company Code to Credit Control Area

Figure 6: Company Codes to Credit Control Area

Assigning Sales Area to a Credit Control Area

SPRO > Enterprise Structure > Assignment > Sales and Distribution > Assign Sales Area to Credit Control Area

Figure 7: Sales Area to Credit Control Area

Define Credit Groups

SPRO > Sales & Distribution > Basic Functions > Credit Management and Risk Management > Credit Management > Define Credit Groups.

The credit group specifies which subsequent transaction can be blocked for processing, if the credit limits are exceeded.You can use the default credit groups or create new once.

Figure 8: Define Credit Groups

Assigning Sales Documents and Delivery Documents to Credit Group

SPRO > Sales and Distribution > Basic Functions > Credit Management/Risk Management > Credit Management > Assign Sales Documents and Delivery Documents > Credit Limit Check for Order Types > Credit Limit Check for Delivery Types

Figure 9: Credit Limit Check for Order Type

Figure 10: Credit Limit check for Delivery Type

Simple Credit Check Vs Automatic Credit Check

1. High-volume, low-value requires automation and efficient handling through grouping, with as little personal handling as possible (refuse orders as much as possible)
2. Low-volume, high-value requires individualization with emphasis on reporting and blocked orders or deliveries that can be checked and unblocked.

Figure 11: Simple Credit Check Vs Automatic Credit Check

Simple Credit Check

The simple credit check compares the payer customer master record’s credit limit to the net document value plus the value of all open items.

In case the value of the document and open items is more than the credit limit:

• System may respond with a warning message in the sales order [OR]
• Warning message and a delivery block [OR]
• Error message, which will cause the document not to be saved.

Automatic Credit Check Variations & Recommended Use

Automatic Credit Check - Gives extra parameters to define credit checks like Credit Control Area, Risk Category and…

Figure 12: Automatic Credit Check Maintenance

STATIC CREDIT LIMIT DETERMINATION:

1. Open Sales Orders + Sales Order Value
2. Open Delivery
3. Open Billing
4. Open Receivables

Recommended Use: This is seen to be safer to use as compared to Dynamic Credit Check as it covers all documents due to varying business needs. For high volume and very low risk customers (e.g. Risk Category 001), it is good practice to put deliveries on block and leave the orders untouched. This prevents a level of check.

DYNAMIC CREDIT CHECK: 

1) 2) 3) 4) Above Mentioned                  

5) Horizon Period : Eg. 3 Months.

Here the System will not consider the Open items 1, 2, 3 & 4 values for beyond 3 months.

Recommended Use: If the business is always likely to have fast moving items leaving no chances of Open Orders, Open Deliveries etc for long time period, this is good to use. There can be other business considerations to include only Open items within certain period

Maximum Document Value

The sales order or delivery value may not exceed a specific value which is defined in the credit check. The value is stored in the currency of the credit control area. This check is useful if the credit limit has not yet been defined for a new customer. It is initiated by a risk category which is defined specifically for new customers.

Recommended Use: Use it for Credit Group 01 (Orders) and high risk category customers which you always want to review beyond a particular value. It may also be used for prepaid or one-time customer with Max doc value.

Critical Fields:

This Credit check is initiated by document changes done in credit sensitive fields. One such example is terms of payment. When this field changes, a check is done on the data in sales order against the data in the customer master.

Date of Next Review

System uses the date of the next credit review as a trigger for an automatic credit check. If you process a sales order after a customer's next review date has already gone by, the system automatically carries out a credit check.

Overdue Open Items

The relation between open items which are more than a certain number of days overdue and the customer balance may not exceed a certain percentage. These values are defined in the customizing for automatic credit control.

Recommended Use: Use it for Credit Group 01 (Orders) in conjunction with Static Credit Check for slightly higher risk category customers, where you don’t want to have more than a certain % of open items. The values may be reduced with increase in risk category values.

Oldest Open Item

The oldest open item may not be more than a specified number of days overdue.

Recommended Use: Use it for any Credit Group 01 or 02 (Orders or deliveries) in conjunction with Static Credit Check for slightly Low-Medium risk category customers.

Maximum Number of Dunning Levels Allowed

The customer's dunning level may only reach a specified maximum value exceeding which the item may be blocked if so configured.

User-Defined Checks- For e.g. Cheque received from a customer bounced, then subsequent orders may get blocked.

Credit Management at work

For each customer, credit limits are specified in the particular credit master record. If the customer exists in multiple credit control areas, individual limit can be specified for each credit control area. In addition, a central credit limit can also be specified for all the credit control areas under which the customer exists. Then, the total of the credit limits for each credit control area should not exceed the central credit limit.

FD32 (FI T code)  is used to set credit limit and credit risk category for the customer.

Figure 13: Credit Limit for Customer

Overview Screen

It gives an overview of credit settings of the customer.

• Customer‘s credit limit, credit exposure, percentage of credit limit used and horizon (as applicable in dynamic credit check) are presented as status
• Payment history along with the average number of days taken for payment is shown
• Payment data contains details such as authorized cash discount and unauthorized cash discount that was available for cleared items, the outstanding receivables in sales days
• Dunning data consists of dunning area for the customer, when he was last dunned and the dunning level reached during the last dunning run
• Control contains the credit risk category of the customer, date of the last check on customer credit limit, if the customer is blocked for credit management business transactions, the credit representative group responsible for the customer, the payment history classification, the financial standing of the customer and date when the credit check of the customer was carried out last.

Figure 14: Overview Screen

Central Data Screen

It gives an overview of central credit limit settings of the customer.

• The maximum permitted credit limit as a total of limits across all credit control areas to which the customer is assigned
• The maximum permitted individual credit limit that a customer can have under any one credit control area
• The currency in which the two maximum limits are specified. This is because we can enter the central data in any currency of choice, independently of the currencies of the control areas
• The currently exhausted credit limit as a total (percentage) across all credit control areas to which the customer is assigned (should be less than or equal to max limit)
• The currently assigned largest credit limit across all credit control areas to which the customer is assigned (should be less than or equal to max limit)
• Date on which the most recent general information about the customer was obtained

Figure 15: Central Data Screen

Status Screen

Shows the customer's actual individual details according to particular credit control area

• The credit limit for the credit control area, credit account if the limit is to be specified for a group of customers, the percentage of credit exposure, horizon date to be taken into consideration, the receivables, special G\L transactions and the order value not yet transferred to FI used for the credit exposure calculation as well as the amount of secured receivables is shown under credit limit data
• The credit risk category, credit representative group, customer credit group and customer group used mainly for sorting or reporting, the reference data for customer credit review, if the customer is blocked for credit management business transactions, the last and next internal review date for the customer credit limit as applicable to the particular credit control area are shown under Internal data
• The date of last external review, the credit information number as applicable to external agency, the classification of payment history of the customer as well as the financial standing is shown under external data

Figure 16: Status Screen

Credit Check at work in Sales Order creation

When sales order is created (SD), system verifies the credit limit used by the customer by communicating with values set in FD32 (FI)

Figure 17: Credit Check

Release Sales Documents from Credit Block

Block will be released if the Agent discussed with Customer and / or payment is received from Customer. VKM1, VKM3 and VKM5 are key T codes used to release Sales and Delivery documents from Credit Block. For the document selected, the following options are available:

• Grant the credit and release the document
• Reject the credit and cancel the document
• Forward the blocked document to another processor
• Recheck the blocked document
• Reassign the blocked document and specify a new sequence of documents. This enables to give priority to and release several documents with a low document value until their credit limit is completely used up, instead doing so for a single document with a high document value that has already exceeded its credit limit.

Figure 18: Release Credit Block

Reports

• RFDKLI10 - Customers with missing credit data
• RFDKLI20 - Reorganization of credit limit for customers in credit control areas
• RFDKLI30 - Central and credit control area related data for customer (short overview)
• RFDKLI40 - Overview credit limit (extensive)
• RFDKLI41 - Credit master sheet
• RFDKLI42 - Early warning list
• RFDKLI43 - Master data list especially for printing customer cards along with data from external systems
• RFDKLI50 - Mass change for master data in credit management
• RFDKLIAB - Display changes for credit management data
• RVKRED06- Checking blocked credit documents
• RVKRED08 - Checking sales documents which reach the dynamic credit check horizon (periodic report)
• RVKRED09 - Checking the credit documents from credit view (released documents are checked only if the validity period for the release is up)
• RVKRED77 - Reorganization of open credit, delivery and billing document values especially when update errors occur
• RVKRED88 - Simulation reorganization credit data SD

What is Revenue recognition?

As per the latest book keeping principles and legal regulations like US-GAAP, IAS, FRS and SOX, Revenue should be realized and recorded in books at the time when the ownership of the goods/services is transferred from selling entity to receiving entity (Usually called as Customer). Event of ownership transfer is determined based on the contractual obligations and incoterms (International commercial terms) used in the sale process.

Why is this so important?

Real revenue figures at any given point is important from both internal and external stake holders point of view. Internal stakeholders like management would be interested to see what is actual realized revenues at any given point in time and external stake holders like share holders of the company would be interested to know the revenue position/growth of the company compared to historical figures. So, it is very important to record and disclose correct revenue figures in each period.

Gist of Standard SAP solution:

Let us see the approach of standard SAP solution.

SAP has released complex, efficient and reliable solution for revenue recognition from Sales module.

Below are different methods available.

1. Revenue recognition at the point of billing (standard method)
2. Time-related revenue recognition (the revenues are realized between specific set dates)
3. Service-related revenue recognition (the revenues are realized on the basis of a specific event, e.g. the goods issue for a delivery)
4. Credit/Debit memo request with reference to preceding document
5. Service based revenue recognition, billing related (only for IS-M solution)

Different methods can be used based on business requirements.

Since the process is triggered from sales cycle, revenue recognition method is assigned to item category of sales document. From FI side, two interim accounts are to be defined.

1. Differed revenue account

2. Unbilled revenue account

Once the billing cycle starts and if the revenues are not related to that particular period (This is decided based on different approaches like proof of delivery, events etc), this revenue is recorded to interim accounts. When the revenue actually becomes realizable (Standard t-codes to be run to check this), revenue from interim accounts is transferred to actual revenue account.

With standard SAP solution, there are Pros like reliable solution, downstream support provided by SAP, product experts to implement the solution and cons like once solution is implemented, it is irreversible, business process/ways of working changes might be required to meet the prerequisites of revenue recognition.

Detained user documentation and how to implement standard revenue recognition solution is explained in OSS note 777996.

Alternate simple approach with custom solution:

If the business is not ready to adapt for changes in ways of working and implement the complex standard solution, below alternate approach can be followed.

Based on the business requirement, logical checks (To restrict the revenue recognition functionality for required scenarios) can be placed in delivery user exit MV50AFZ1 and update planned delivery date. To arrive at the date, required calculations can be done in user exit based on characteristics like incoterms, ship from country, ship to country, route etc. When invoice is created for the delivery, billing exit RV60AFZC can be used to update billing date which is copied from planned delivery date.

Based on the calculations, if the billing date (Planned delivery date) is coming in future period, billing document will not be released to accounting as the future period is not yet open and hence accounting books are not updated. Transaction VFX3 can be set up as batch job to release these billing documents to accounting. So, open billing documents for which period is open will automatically be released to accounting through this job. Job frequency can be  decided by business. If the billing date is coming as current month, document would be automatically released to accounting and revenues are recorded in books in same period.

If planned delivery date is already being used for some other purpose in the current set up, new delivery text can be created for this purpose. Also, if there are any legal implications to send the invoice print outs, proforma invoice can be created for the same.

Please note that due date would be affected through this logic as billing date is updated with future date based on the calculations. It makes sense to consider correct baseline date for due date calculation based on ownership transfer.

This solution might not be foolproof. But can be effectively used when customers are reluctant to implement standard solution because of what ever valid reasons.

Your valuable comments are most welcome

Best Regards,

Vinod Vemuru

Data Migration is a key aspect for any SAP Engagement. There are various tools available which enable seamless data migration in a short span of time. During my involvement in various engagements, this has been one of the pain areas. Often, most of us are at pain to use the various tools and have to be dependent.

The tool highlighted below helps to have a common tool that can be used to prepare data upload templates across various modules. This tool calls up a BDC Program in the background. A prerequisite for using this tool is the knowledge of recording a BDC and the basic functions in Excel.

The code for the same is:

REPORT ZR_PP_YSCTA7O.

PARAMETERS : DMODE TYPE C DEFAULT 'A',

             FNAME LIKE RLGRAP-FILENAME OBLIGATORY

                       DEFAULT 'c:\desktop\test\matmas.txt',

             TRANCODE(4) TYPE C OBLIGATORY DEFAULT 'MM01'.

DATA : FLEN TYPE I, FLEN2 TYPE I.

DATA : HASH VALUE '#', PERCNT VALUE '%', L_COMA VALUE ','.

DATA : TEMP1, TEMP2.

DATA PROG_TAG1 TYPE I VALUE 0.

DATA : PROG_NAME(50).

DATA : STR_FLD(50), STR_VAL(40).

DATA : HDR_LINE(5000),

       COMP_HDR_LINE(5000),

       HDR_LINE1(40),

       HDR_LINE2(5000),

       STR_LINE(5000),

       STR_LINE1(40),

       STR_LINE2(5000).

DATA : BEGIN OF MESSTAB OCCURS 0.

        INCLUDE STRUCTURE BDCMSGCOLL.

DATA : END OF MESSTAB.

DATA : BEGIN OF ITAB OCCURS 10,

       ITEXT(5000) TYPE C,

END OF ITAB.

DATA : BEGIN OF BDCDATA OCCURS 0.

        INCLUDE STRUCTURE BDCDATA.

DATA :END OF BDCDATA.

*----------- Possible entries button for Filename SEARCH --------------*

AT SELECTION-SCREEN ON VALUE-REQUEST FOR FNAME.

  PERFORM GET_FILE CHANGING FNAME.

START-OF-SELECTION.

CALL FUNCTION 'WS_UPLOAD'

     EXPORTING

          CODEPAGE            = 'TEST'

          FILENAME            = FNAME

          FILETYPE            = 'DAT'

     IMPORTING

          FILELENGTH          = FLEN

     TABLES

          DATA_TAB            = ITAB

     EXCEPTIONS

          CONVERSION_ERROR    = 1

          FILE_OPEN_ERROR     = 2

          FILE_READ_ERROR     = 3

          INVALID_TABLE_WIDTH = 4

          INVALID_TYPE        = 5

          NO_BATCH            = 6

          UNKNOWN_ERROR       = 7

          OTHERS              = 8.

*perform create_group.

PERFORM GEN_BDC_DATA.

*---------------------------------------------------------------------*

*       FORM CREATE_GROUP                                             *

*---------------------------------------------------------------------*

*       ........                                                      *

*---------------------------------------------------------------------*

FORM CREATE_GROUP.

  CALL FUNCTION 'BDC_OPEN_GROUP'

       EXPORTING

            CLIENT              = SY-MANDT

            GROUP               = 'PPGroup'

            HOLDDATE            = SY-DATUM

            USER                = SY-UNAME

       EXCEPTIONS

            CLIENT_INVALID      = 1

            DESTINATION_INVALID = 2

            GROUP_INVALID       = 3

            GROUP_IS_LOCKED     = 4

            HOLDDATE_INVALID    = 5

            INTERNAL_ERROR      = 6

            QUEUE_ERROR         = 7

            RUNNING             = 8

            SYSTEM_LOCK_ERROR   = 9

            USER_INVALID        = 10

            OTHERS              = 11.

  WRITE :/ 'Function open_group status : ', SY-SUBRC.

  PERFORM GEN_BDC_DATA.

  CALL FUNCTION 'BDC_CLOSE_GROUP'.

1. ENDFORM.

*---------------------------------------------------------------------*

*       FORM GEN_BDC_DATA                                             *

*---------------------------------------------------------------------*

*       ........                                                      *

*---------------------------------------------------------------------*

FORM GEN_BDC_DATA.

  LOOP AT ITAB.

    REFRESH BDCDATA.

    IF ITAB-ITEXT(1) EQ HASH.

      MOVE ITAB-ITEXT TO HDR_LINE.

    ELSEIF ITAB-ITEXT(1) EQ PERCNT.

      MOVE HDR_LINE TO COMP_HDR_LINE.

      MOVE ITAB-ITEXT TO STR_LINE.

      DO.

        IF STR_LINE(1) = '!'.

          EXIT.

        ENDIF.

        SPLIT COMP_HDR_LINE AT L_COMA INTO HDR_LINE1 HDR_LINE2.

        CLEAR COMP_HDR_LINE.

        MOVE HDR_LINE2 TO COMP_HDR_LINE.

        CLEAR HDR_LINE2.

        SPLIT STR_LINE AT L_COMA INTO STR_LINE1 STR_LINE2.

        CLEAR STR_LINE.

        MOVE STR_LINE2 TO STR_LINE.

        CLEAR STR_LINE2.

        FLEN = STRLEN( STR_LINE1 ).

        FLEN2 = FLEN - 1.

        IF STR_LINE1(1) EQ PERCNT.

          IF FLEN GT 1.

            MOVE STR_LINE1+1(FLEN2) TO PROG_NAME.

            CLEAR STR_LINE1.

            MOVE PROG_NAME TO STR_FLD.

            PROG_TAG1 = 1.

          ELSEIF FLEN EQ 1.

            CLEAR STR_LINE1.

            MOVE PROG_NAME TO STR_FLD.

            PROG_TAG1 = 1.

          ENDIF.

        ELSEIF PROG_TAG1 EQ 1.

          MOVE STR_LINE1 TO STR_VAL.

          PERFORM BDC_DYNPRT USING STR_FLD STR_VAL.

          CLEAR : STR_FLD, STR_VAL.

          PROG_TAG1 = 0.

        ELSE.

          PERFORM BDC_FIELD USING HDR_LINE1 STR_LINE1.

        ENDIF.

*     write :/ hdr_line1, '  ', str_line1.

        CLEAR : HDR_LINE1, STR_LINE1.

      ENDDO.

* perform pop_data.

CALL TRANSACTION TRANCODE USING BDCDATA MODE DMODE MESSAGES

                        INTO MESSTAB.

    ENDIF.

* Hash the following loop if not required.

   LOOP AT BDCDATA.

     WRITE :/ BDCDATA-PROGRAM, BDCDATA-DYNPRO, BDCDATA-DYNBEGIN,

           BDCDATA-FNAM, BDCDATA-FVAL.

   ENDLOOP.

  ENDLOOP.

1. ENDFORM.

*---------------------------------------------------------------------*

*       FORM POP_DATA                                                 *

*---------------------------------------------------------------------*

*       ........                                                      *

*---------------------------------------------------------------------*

FORM POP_DATA.

  CALL FUNCTION 'BDC_INSERT'

       EXPORTING

            TCODE     = TRANCODE

       TABLES

            DYNPROTAB = BDCDATA

         EXCEPTIONS

              INTERNAL_ERROR = 1

              NOT_OPEN       = 2

              QUEUE_ERROR    = 3

              TCODE_INVALID  = 4

              OTHERS         = 5.

  WRITE :/ 'Function insert status :', SY-SUBRC.

1. ENDFORM.

*---------------------------------------------------------------------*

*       FORM BDC_DYNPRT                                               *

*---------------------------------------------------------------------*

*       ........                                                      *

*---------------------------------------------------------------------*

*  -->  PROGRAM                                                       *

*  -->  DYNPRO                                                        *

*---------------------------------------------------------------------*

FORM BDC_DYNPRT USING PROGRAM DYNPRO.

  CLEAR BDCDATA.

*write :/ program, dynpro.

  BDCDATA-PROGRAM = PROGRAM.

  BDCDATA-DYNPRO = DYNPRO.

  BDCDATA-DYNBEGIN = 'X'.

  APPEND BDCDATA.

1. ENDFORM.

*---------------------------------------------------------------------*

*       FORM BDC_FIELD                                                *

*---------------------------------------------------------------------*

*       ........                                                      *

*---------------------------------------------------------------------*

*  -->  FNAM                                                          *

*  -->  FVAL                                                          *

*---------------------------------------------------------------------*

FORM BDC_FIELD USING FNAM FVAL.

  CLEAR BDCDATA.

  BDCDATA-FNAM = FNAM.

  BDCDATA-FVAL = FVAL.

  APPEND BDCDATA.

1. ENDFORM.

*&---------------------------------------------------------------------*

*&      Form  GET_FILE

*&---------------------------------------------------------------------*

*       text

*----------------------------------------------------------------------*

*      <--P_FNAME  text

*----------------------------------------------------------------------*

form GET_FILE changing fname.

  CALL FUNCTION 'WS_FILENAME_GET'

       EXPORTING

            DEF_FILENAME     = '*.txt '

            DEF_PATH         = 'C:\'

            MASK             = ',*.txt,*.*.'

            MODE             = 'O'

          TITLE         = 'Open a Text(Tab delimited)(*.txt) file only'

       IMPORTING

            FILENAME         =  FNAME

       EXCEPTIONS

            INV_WINSYS       = 1

            NO_BATCH         = 2

            SELECTION_CANCEL = 3

            SELECTION_ERROR  = 4

            OTHERS           = 5.

  IF SY-SUBRC = 0.

    FNAME = FNAME.

  ENDIF.

ENDFORM.

Steps to execute the process:

1.      1.  Copy the code above and create a transaction for the same.For the custom program, create a new transaction code through SE93

         2. Use the transaction code SHDB to create the recording

1.      3.  The next step is to create the excel template for the upload. After the recording has been done, allow system folder options to allow extensions for known file types.

Now open the excel worksheet and make the below format

Now copy the text from the recording done earlier into the excel sheet

Now go back to the recording in SHDB

Now paste the information into the excel sheet again

Copy all the fields from the recording into the excel file. When a transaction is executed in SAP, it calls up multiple screen along with their variants. It is important to copy the recordings of all the screens into the excel sheet

After all the data of recording has been transferred, please end the row with a “!”

Use the T Code ZBDC to upload the file in SAP

When the transaction is executed, the document is created.

     Posting periods are used to control the postings done in a company code at any given point. Posting periods are defined in posting period variant and posting period variant is assigned to company code.

     In regular production scenario, only one posting period is open at any point in time (Except during month end closing time where 2 period are open to handle MEC activities). This helps to restrict backdated postings in the periods for which, month end reporting has already been completed. However, there is no technical restriction/notification mechanism in the system while opening the previous periods.

     Below technique can be implemented to notify Finance team/people who are required to be informed about unintentional changes to posting periods when ever already closed previous periods are opened by some one. This can't be controlled by authorization as we do need OB52 access for some users to handle MEC. But below solution ensures that, this access can't be exploited by users.

     Current period information is stored in table table T001B and can be maintained using maintenance view V_T001B. Mail notification functionality can be implemented by using table maintenance events.

     There are many table maintenance events provided by SAP which are triggered at different point in times. In this case, event 02 (After saving the data in the database) can be used. ABAP coding can be done under this event to send the e-mail notification with required details like company code, period changes, to which account type(D,K,S,A,M,+) this change was done, user who is doing this change, date and time of change etc. to finance team. Respective team can validate if this change is done with proper approvals or not. This solution helps especially when document posting and MEC activities are outsourced to some other vendor.

I am not explaining about the coding part for sending e-mail here as there are so many articles already published on how to send mail from SAP. Additional checks can be placed in coding based on business requirements.

Your valuable comments are most welcome

Best regards,

Vinod Vemuru.

Dear all,

I would like to explain how to treat customer as a vendor and settle business transactions

We have to ensure following activities in SAP, in order to ensure that the customer and vendor are correlated and function correctly

1. Ensure Customer and Vendor Master Data are linked
2. Open Items are existing i.e. booked as a customer and vendor separately
3. Document Type of Customer Receipt allows settlement with vendor (Type K)
4. Clearing is done considering open items of Customers and Vendors together
5. Automatic Payment program – Requirement in order to ensure that the links APP picks customer and vendor open line items together

Let us have a look into details of each step mentioned above:-

Customer Master linkage to vendor, T.Code xd02 --> Select customer --> Control Data Tab --> Enter the vendor number to which it is to be linked

Go To XK02, Enter Vendor Number --> Control Tab --> Enter the Customer number (Generally it comes automatically once you link the same vendor in Customer Master)

Existence of open items can be checked in FBL5N --> Customer Code -> Open Items (Please select Normal items and Vendor Line items which will also show all the open items of vendors which have been linked above)

We can see below open items which are in existence on account of customer and vendor

Now we’ll try to receive differential amount (Amt. Rs 100) after settling Rs. 112 (receivable as Customer) and Rs. 12 (Payable as Vendor). Key things to be considered (T.Code F-28 – Customer Receipt) are:-

1. Please select ‘Other Accounts’ check box which helps to select open items of other Account type, other than the account type selected (D in our case)
2. Once done, please select ‘Process open items’ which will pop up a screen wherein linked vendor data is to be entered (‘Standard OIs depict checkbox ensures that special GL items will not come in open items). Press enter once done
3. Note - Please ensure that the document type used has Vendor allowed in Account type (T.Code OBA7 --> Select Document type (DA in our case) --> ensure that Vendor checkbox is selected (Screenshot below)

Select line items which are to be cleared and press save. Please note that Rs. 112 was on account of customer and Rs 12 was on account of vendor (which is linked through respective master data). It will show a bank receipt of Rs. 100 and clear both customer and vendor line items

Let us have a look at the Customer line items post bank receipt. Please ensure that Vendor checkbox is ticked in T.Code FBL5N

Now we can see that both customer and vendor line items are cleared, with same clearing document

Automatic Payment Program – In case we want to link customers to vendors while running APP, following master data changes are required in customer and vendor as shown in the below screenshots

Please go through the standard F1 help which is available on the screenshot below when F1 is pressed on ‘Clearing with Vendor’ checkbox

Hope this helps !

Best Regards

Nishu

Key Concept

The Investment Management module is closely linked to FI/CO modules and provides management of large scale capital investments. This module provides simultaneous cost accounting and asset accounting sides of capital investment. The investments are managed in the form of overhead cost (Work Breakdown Structure) and links to an AUC. These WBS are the primary CO Objects which can be settled on a periodic basis to AUCs. The WBS element with its AUC can be termed as Investment Measure.

In simple terms, AUC is created to accumulate all the cost that belongs to an asset during the construction phase. The cost is accumulated to a WBS and can then be transferred to an AUC.

Asset under Construction does not have any Depreciation as these are considered as partial assets and hence are not capitalized.  After the desired cost or value is transferred from the WBS to AUC, the value residing in the AUC can be transferred to a Fixed Asset which can then be capitalized.

Setup Process

Create Investment Measure Asset Class

The stepping stone for the process is creating an Investment Measure Asset Class. When we say we are creating an Investment Measure Asset Class it means that Assets for this class cannot be created manually/directly using AS01, ABZON or with any other transaction, assets for this class can only be created automatically with WBS of type AUC.

                              Figure 1: Asset Class Configuration

Account determination of asset class

GL Accounts will be assigned to the investment measure asset class. Please note that only Balance Sheets accounts will be defined for an Investment Measure Class but there would be no Deprecation Accounts, as this class will not have any depreciation.

                                          Figure 2: Balance Sheet Accounts

                                  Figure 3: Depreciation Accounts

Define Depreciation for AUC Class

AUC Asset Class do not depreciate and to make this happen we need to create a Depreciation Key which will charge zero depreciation and assign this key to the various Depreciation Areas in the Asset Class. Also, the layout for this asset class should be different from the layout for a normal asset class. SAP has a predefined layout for AUC Classes.

The AUC Asset Class will have zero depreciation which allows the cost to be collected and posted to a GL account, recognized as capital expenditures and can be capitalized at the desired time.

                                                    Figure 4: Setting Depreciation Key

Create Investment Profile - OITA

Another major step is creation of an Investment Profile. This is the component which controls the creation of assets under construction for Investment Measure. The Investment Measure Asset Class created will be assigned to this Investment Profile.

                     Figure 5: Investment Profile Setting

Create Allocation structure - OKO6

Allocation structure decides which Settlement Cost Element would be the Receiver when the cost is settled to an AUC in other words to which cost element and the corresponding GL account the cost from the AUC WBS will be transferred (More details will be given later in the Settlement Process). Two major components in the allocation structure are defined to handle this process; Source and Settlement Cost Element.

• A Source can be a range of Cost elements or a Cost element group.

                                                    Figure 6: Defining Source

• A Settlement Cost element is defined for the Cost element group defined above in Figure 6. In case if the sender of the cost (Cost Element) lies in the Cost element group defined above then the receiver of that cost will be Settlement cost element 79330000 defined below.

                                                     Figure 7: Settlement Cost Element    

Create Source Structure - OKEU

• A Source can have several source assignments like Capital, Expenses, etc and each of which can have a range of Cost elements or a Cost Center group which are settled using the distribution rules.
• For instance if there are more than one type of cost then we need to have a Source Structure defined.
• If there is a need to generate more than one AUC for a WBS then we have to check the box ‘AUC per source structure’ in (Figure 5).

                                   Figure 8: Source Structure

                                        Figure 9: Cost Element Group Defined for an Assignment

Create Settlement Profile and Assign the Allocation structure - OKO7

Settlement Profile is mainly used to define distribution rules (details will come later in the settlement process) which indeed can be used to determine the Receiver Asset (This would be a Fixed Asset to which Final settlement from AUC to Fixed Asset will take place) and the amount or percentage to be settled to that receiver.

                                         Figure 10: Settlement Profile Configuration

Create Project Profile and Assign Investment Profile and Settlement Profile - OPSA

The linkage between the WBS and the Investment Measure Class is created here; Investment Profile created in Figure5 is assigned to the Project Profile. The Investment Measure Assets Class which is assigned to the investment Profile links to the WBS with this assignment.

                                Figure 11: Project Profile Configuration

Create Pojects and WBS elements of type AUC with the Project Profile

The WBS is created with the Project Profile created above. When checked in the WBS master table PRPS the Investment Profile will be updated as the one created and the type of the WBS would be AC.

When this WBS is released i.e. the status of the WBS changes to RELthen automatically an AUC is created (which belongs to the investment measure asset class as seen in Figure 14below) linked to this WBS. This linkage can be seen in the Asset Master of this AUC in the Origin Tab, the WBS element will be defined.

                                            Figure 12: Creating Project

                            Figure 13: Creating Work Breakdown Structure

Figure 14: Asset Created After Releasing the AUC WBS

Postings on this WBS

Postings to this WBS will be done i.e. various costs will be booked to this CO Object. The document(s) will have one or more line items with this WBS of type AUC.

                                 Figure 15: Posting to AUC WBS

Settlement Process

Maintain Settlement Rule - CJIC

The settlement rule is created for the WBS which will have fields like:

• Category: Would be FXA
• Fixed Asset Number
• Percentage of the value to be transferred to the Fixed Asset

                          Figure 16: Distribution Rule

         Figure 17: Fixed Asset defined in the Distribution Rule

Automatic Settlement - CJ88

The automatic settlement through this transaction ensures that the value or cost sitting in the WBS will get transferred to the AUC and actual posting of the documents takes place.

Please note that the cost/value from WBS to AUC can be transferred till the WBS is closed.

Figure 18: CJ88 Screen for Automatic Settlement

4 Accounting documents/objects are created when the WBS is automatically settled. Please note that receiver would be the Settlement Cost Element defined in Figure 7.

                                Figure 19: Output Screen of the Settlement

                                  Figure 20: Distribution Rules Applied

First document is an FI document which actually depicts how the cost is transferred from WBS to an AUC.

                 Figure 21: FI Posting Document After Settlement

• One of the line item would be a Debit to the recon account of AUC mentioned in the account determination of AUC asset class in Figure 1.
• The other line item will be a credit from the account which is derived based on the allocation structure of settlement cost elements for WBS with Investment Measure (Figure 6 and Figure 7).In the allocation structure different settlement cost elements are defined for a group/range of cost elements. Let me take an example to clarify this point. The GL account mentioned in the line item having AUC WBS when the initial postings are done (Figure 15)on the WBS will have a corresponding Cost element. Now this cost element will have a corresponding settlement cost element which is defined in the allocation structure (Figure 7). So now this settlement cost element will be picked and the GL account corresponding to this settlement cost element will form the account from which the credit of the value will take place.
• So, the document will have one debit line item to recon account of AUC and the other will be a credit line item from the GL account corresponding to the settlement cost element derived based on the allocation structure.

The second document is a Profit Centre document which will update the ledger balance corresponding to the profit centre for the AUC type WBS. The profit centre corresponding to the AUC type WBS can be seen from WBS master table PRPS.

                                     Figure 22: Profit Center Document

The third object/document shows the asset transaction having the transaction type used by which the AUC’s value is updated. For instance TType 116 – Internal Settlement to AUC is used.

                                  Figure 23: Asset Transaction Document

The last document is a controlling document which demonstrates the primary cost posting for the controlling object, which is AUC type WBS in this case.

                                           Figure 24: Controlling Document

Full Settlement - CJIC

After the AUC has the desired value or completed we can transfer the value/cost to a Fixed Asset with what is called Full Settlement. After this is executed the value/cost sitting in AUC will be transferred to the Fixed asset based on the Settlement Rule created above (Figure 16)in CJIC.

    Figure 25: CJ88 Screen for Full Settlement

3 Accounting Documents/Objects are created in Full Settlement.

                         Figure 26: Output Screen After Full Settlement

                             Figure 27: Distribution Rules Applied

First document is an FI document which depicts how the value is transferred from AUC to a Fixed Asset.

               Figure 28: FI Posting for Full Settlement

• One of the line item would be a Debit to the recon account of Fixed Asset mentioned in the account determination of the Fixed Asset (Figure17).
• The other line item would be a credit from the recon account of AUC mentioned in the account determination of the AUC Asset Class.

The second document/object shows 2 asset transactions which will have the transaction type used by which the AUC’s value is transferred to Fixed Asset. For instance TType 336 – Amount is credited from the AUC and TType 339 - Amount is debited to the fixed asset.

                                  Figure 29: Amount Credited From AUC

                                  Figure 30: Amount Debited To Fixed Asset

The last document is a controlling document which demonstrates the primary cost posting for the controlling object, which is the Default Cost Center in the Asset Master of the Fixed Asset as shown in Figure 32.

                                           Figure 31: Controlling Document

Figure 32: Default Cost Center of Fixed Asset

Conclusion

Now after all the cost is transferred to Fixed Asset then the depreciation can be charged according to the Depreciation Key defined for the Fixed Asset.

Below is the Flowchart for End to End process so as to recap what was explained in the paper.

                                   Figure 33: Flowchart of End to End Process