Customizing Financial Accounting in SAP (H3210)

Description

* Understand business processes, functions, and customizing options

* Find real-world, practical examples to illustrate configuration concepts and processes

* Benefit from detailed, step-by-step instructions and tips and tricks based on expert knowledge

There's no need to look any further! This comprehensive book teaches you how to customize Financial Accounting in SAP ERP for all of your unique business scenarios. Whether you want to change your screen layout for end users or need to define new process variants in any FI component, this book makes configuring your solution easy for any business requirement.

Practical Knowledge

Acquire the knowledge behind the customizing actions. After reading this book, you'll be able to take over an implementation in any stage, or start one of your own.

Integration with SAP Modules

Learn how to integrate FI with Controlling (CO), Sales and Distribution (SD), Materials Management (MM), Production Planning (PP), and more.

Learn How to Customize as You Read

Discover step-by-step instructions, real-world examples, and see helpful screenshots to aid you in customizing your FI system.

Comprehensive Coverage

Find information on seldom-covered topics: Lease Accounting, Contract Accounts Receivable and Payable, and much more.

Case-Study Approach

Follow along with a fictitious global enterprise as the implementation team configures FI in SAP to meet business-specific needs and requirements.

CONTENTS:

... Acknowledgments ... 21

... Preface ... 23

1 ... Financial Accounting in SAP Financials ... 27

1.1 ... SAP Enterprise Resource Planning 6.0 ... 27

1.2 ... SAP ERP Financials ... 29

1.2.1 ... Key Functionality ... 30

1.2.2 ... Business Benefits ... 32

1.3 ... SAP ERP Financials Financial Accounting ... 32

1.3.1 ... What's New ... 33

1.3.2 ... Components ... 35

1.4 ... Summary ... 37

2 ... New General Ledger ... 39

2.1 ... New G/L Architecture ... 40

2.1.1 ... Totals Table ... 41

2.1.2 ... Ledger-Specific Line Items Tables ... 42

2.1.3 ... Table for Storing Valuations for Year-End Closing in Selected Parallel Ledgers (BSEG_ADD) ... 42

2.2 ... New Features in New G/L ... 43

2.2.1 ... Ledger Concept ... 44

2.2.2 ... Functionality ... 46

2.3 ... Summary ... 56

3 ... Customizing SAP ... 57

3.1 ... The Implementation Guide ... 58

3.1.1 ... IMG Settings ... 58

3.1.2 ... IMG Variants ... 60

3.1.3 ... Logical Components of IMG ... 61

3.2 ... Creating a Customizing Project ... 63

3.3 ... Alternate Method to Customize Through IMG ... 68

3.4 ... Summary ... 69

4 ... Enterprise Structure ... 71

4.1 ... Organizational Units in Financial Accounting (FI) ... 72

4.2 ... Localize Sample Organizational Units ... 73

4.3 ... Define Company ... 77

4.4 ... Define Company Code ... 80

4.4.1 ... Create Company Code without Copying from an Existing Company Code ... 82

4.4.2 ... Create Company Code by Copying an Existing Company Code ... 85

4.4.3 ... Assign Company Code to Company ... 88

4.5 ... Define Credit Control Area ... 89

4.5.1 ... Centralized Credit Management ... 90

4.5.2 ... Decentralized Credit Management ... 91

4.5.3 ... Mixed Credit Management ... 91

4.5.4 ... Assign Company Code to Credit Control Area ... 96

4.6 ... Define Business Area ... 97

4.7 ... Define Segments ... 100

4.8 ... Define Financial Management Area ... 103

4.9 ... Define Functional Area ... 107

4.10 ... Define Controlling Area ... 109

4.10.1 ... Create New Controlling Area ... 110

4.10.2 ... Assign Controlling Area to Company Code ... 113

4.11 ... Define Profit Centers ... 115

4.12 ... Summary ... 120

5 ... Financial Accounting Global Settings (New): Company Code Global Parameters ... 123

5.1 ... Activate New General Ledger Accounting ... 123

5.2 ... Fiscal Year and Posting Periods ... 125

5.2.1 ... Maintain Fiscal Year Variant (Maintain Shortened Fiscal Year) ... 130

5.2.2 ... Define Variants for Open Posting Periods ... 135

5.2.3 ... Open and Close Posting Periods ... 137

5.3 ... Settings for Standard Fields ... 140

5.3.1 ... Maintain Transaction Types for Consolidation ... 141

5.3.2 ... Activate Cost of Sales Accounting for Preparation ... 143

5.3.3 ... Enter Functional Area ... 144

5.4 ... Settings for Customer Fields ... 145

5.4.1 ... Edit Coding Block ... 145

5.4.2 ... Include Fields in Totals Table ... 148

5.4.3 ... Define Master Data Check ... 150

5.4.4 ... Include Customer Fields in Enjoy Transactions ... 152

5.4.5 ... Define Subscreens for Coding Blocks ... 153

5.5 ... Field Status ... 153

5.5.1 ... Define Field Status Variants (FSVs) ... 156

5.5.2 ... Assign Company Code to Field Status Variants ... 158

5.6 ... Ledgers for G/L Accounting ... 159

5.6.1 ... Define Ledgers for G/L Accounting ... 160

5.6.2 ... Define Currencies of Leading Ledger ... 161

5.6.3 ... Define and Activate Non-Leading Ledgers ... 164

5.6.4 ... Define Ledger Group ... 165

5.6.5 ... Display Scenarios for G/L Accounting ... 167

5.6.6 ... Activate Cost of Sales Accounting ... 170

5.7 ... Parallel Accounting ... 171

5.7.1 ... Define Accounting Principles ... 171

5.7.2 ... Assign Accounting Principle to Ledger Groups ... 172

5.7.3 ... Assign Valuation Areas and Accounting Principles ... 173

5.8 ... Real-Time Integration of CO with FI ... 175

5.8.1 ... Define Variants for Real-Time Integration ... 176

5.8.2 ... Assign Variants for Real-Time Integration to Company Codes ... 178

5.9 ... Chart of Accounts ... 178

5.9.1 ... Revise Chart of Accounts ... 180

5.9.2 ... Assign Company Code to Chart of Accounts ... 182

5.10 ... Enter Company Code Global Parameters ... 183

5.11 ... Summary ... 190

6 ... Financial Accounting Global Settings (New): Documents ... 193

6.1 ... Document Components ... 194

6.2 ... Document Types ... 197

6.2.1 ... Define Document Types for Entry View ... 199

6.2.2 ... Define Document Types for Entry View in a Ledger ... 203

6.2.3 ... Define Document Types for General Ledger View ... 203

6.3 ... Document Numbering ... 204

6.3.1 ... Types of Number Assignment ... 204

6.3.2 ... Number Range Validity ... 205

6.3.3 ... Changing/Deleting Number Ranges ... 206

6.3.4 ... Number Range for Reversal Documents ... 206

6.3.5 ... Number Range for Special Documents ... 207

6.3.6 ... Document Storage ... 207

6.3.7 ... Define Document Number Ranges for Entry View ... 207

6.4 ... Screen Variants for Document Entry ... 211

6.5 ... Document Change Rules ... 211

6.5.1 ... Document Change Rules, Document Header ... 211

6.5.2 ... Document Change Rules, Line Item ... 212

6.6 ... Posting Keys ... 213

6.7 ... Tolerance Groups ... 215

6.7.1 ... Define Tolerance Groups for Employees ... 216

6.7.2 ... Assign Users to Tolerance Groups ... 220

6.8 ... Define Texts for Line Items ... 221

6.9 ... Default Values ... 222

6.9.1 ... Define Default Values ... 223

6.9.2 ... Enable Fiscal Year Default ... 224

6.9.3 ... Default Value Date ... 224

6.9.4 ... Change Message Control for Document Processing ... 225

6.10 ... Document Parking ... 226

6.10.1 ... Change Posting Date for Parking Documents ... 226

6.10.2 ... Develop Enhancements for Parking Documents ... 227

6.11 ... Validation and Substitution of Accounting Documents ... 228

6.11.1 ... Validation in Accounting Documents ... 228

6.11.2 ... Substitution in Accounting Documents ... 231

6.12 ... Account Document Archiving ... 232

6.12.1 ... Archiving, Account Type Life ... 232

6.12.2 ... Archiving, Document Life ... 234

6.13 ... Summary ... 235

7 ... Financial Accounting Global Settings (New): Tax and Correspondence ... 237

7.1 ... Tax on Sales and Purchases ... 238

7.1.1 ... Basic Settings ... 239

7.1.2 ... Calculation ... 255

7.1.3 ... Posting ... 261

7.2 ... Withholding Tax ... 263

7.2.1 ... Activate Extended Withholding Tax ... 265

7.2.2 ... Basic Settings ... 265

7.2.3 ... Calculation ... 268

7.2.4 ... Posting ... 282

7.2.5 ... Certificate Numbering for Withholding Tax ... 284

7.2.6 ... Report ... 287

7.2.7 ... Withholding Tax Changeover ... 291

7.3 ... Correspondence ... 295

7.3.1 ... Using Correspondence Types ... 295

7.3.2 ... Assign Programs for Correspondence Types ... 296

7.3.3 ... Define Sender Details for Correspondence Form ... 297

7.3.4 ... Determine Call-Up Functions ... 298

7.3.5 ... Develop Enhancements for Correspondence ... 298

7.4 ... Summary ... 299

8 ... General Ledger Accounting (New) ... 301

8.1 ... G/L Account Master Data ... 301

8.1.1 ... Preparations ... 303

8.1.2 ... G/L Account Creation and Processing ... 309

8.2 ... Business Transactions ... 323

8.2.1 ... Adjustment Posting and Reversal ... 323

8.2.2 ... Bank Account Interest Calculation ... 325

8.2.3 ... Prepare Cross-Company Code Transactions ... 339

8.2.4 ... Document Splitting ... 342

8.2.5 ... Manual Accrual ... 351

8.2.6 ... Open Item Clearing ... 366

8.3 ... Periodic Processing ... 376

8.3.1 ... Planning ... 376

8.3.2 ... Closing Operations ... 382

8.4 ... Tools ... 387

8.5 ... Reporting ... 388

8.6 ... Summary ... 390

9 ... Accounts Payable (FI-A/P) ... 391

9.1 ... Vendor Master Data ... 392

9.1.1 ... Function and Structure ... 392

9.1.2 ... Preparatory Settings to Create Master Data ... 393

9.1.3 ... Creation of Vendor Master Records ... 398

9.2 ... Business Transactions ... 401

9.2.1 ... Maintain Terms of Payment ... 401

9.2.2 ... Define Cash Discount Base for Incoming Invoices ... 405

9.2.3 ... Release for Payment ... 405

9.3 ... Outgoing Payments ... 413

9.3.1 ... Global Settings ... 414

9.3.2 ... Manual Outgoing Payments ... 418

9.3.3 ... Automatic Outgoing Payments ... 424

9.3.4 ... Define Payment Forms ... 445

9.4 ... Reporting ... 447

9.5 ... Summary ... 449

10 ... Accounts Receivable (FI-A/R) ... 451

10.1 ... Customer Account Master Data ... 452

10.1.1 ... Structure ... 452

10.1.2 ... Prepare for Creating Customer Masters ... 453

10.1.3 ... Create Customer Master Records ... 458

10.2 ... Business Transactions ... 462

10.2.1 ... Maintain Terms of Payment ... 462

10.2.2 ... Define Cash Discount Base for Outgoing Invoices ... 463

10.2.3 ... Define Tax Accounts for Outgoing Invoices ... 463

10.2.4 ... Incoming Payments ... 464

10.2.5 ... Payments with Payment Cards ... 468

10.2.6 ... Down Payment Received ... 470

10.3 ... Credit Management ... 472

10.3.1 ... Assign Permitted Credit Control Areas to Company Code ... 473

10.3.2 ... Define Preliminary Settings for Credit Management ... 473

10.3.3 ... Define Groups ... 475

10.3.4 ... Define Risk Categories ... 476

10.3.5 ... Define Credit Representative Groups ... 477

10.3.6 ... Define Credit Representatives ... 478

10.3.7 ... Define Intervals for Days in Arrears in Credit Management ... 479

10.3.8 ... Credit Check: Static and Dynamic ... 480

10.4 ... Interest Calculation ... 481

10.4.1 ... Prepare Interest on Arrears Calculation ... 482

10.4.2 ... Prepare Item Interest Calculation ... 484

10.5 ... Dunning ... 485

10.5.1 ... Define Dunning Keys ... 488

10.5.2 ... Define Dunning Block Reasons ... 489

10.5.3 ... Define Dunning Forms ... 490

10.5.4 ... Define Dunning Procedures ... 491

10.5.5 ... Define Dunning Areas ... 502

10.5.6 ... Generate List for Dunning Configuration ... 503

10.6 ... Reporting ... 504

10.7 ... Summary ... 505

11 ... Contract Accounts Receivable and Payable (FI-CA) ... 507

11.1 ... Organizational Units ... 508

11.1.1 ... Set Up Company Code for Contract Accounts Receivable and Payable ... 508

11.1.2 ... Define Company Code Groups ... 510

11.1.3 ... Assign Company Codes to Company Code Groups ... 510

11.2 ... Basic Functions ... 511

11.2.1 ... Activate Additional Checks for Master Data Changes to a Business Partner ... 511

11.2.2 ... Contract Accounts ... 512

11.2.3 ... Postings and Documents ... 516

11.2.4 ... Open Item Management ... 520

11.2.5 ... Check Management ... 522

11.3 ... Business Transactions ... 523

11.3.1 ... Payments ... 523

11.3.2 ... Interest Calculation ... 526

11.3.3 ... Define Dunning Procedure ... 528

11.3.4 ... Configure Returns Reasons ... 528

11.4 ... Integration ... 529

11.4.1 ... Define Posting Specifications for General Ledger Transfer ... 529

11.4.2 ... Sales and Distribution ... 530

11.4.3 ... Cash Management ... 531

11.5 ... Information System ... 533

11.6 ... Summary ... 533

12 ... Bank Accounting (FI-BL) ... 535

12.1 ... Bank Master Data ... 535

12.1.1 ... Bank Directory ... 535

12.1.2 ... House Banks ... 537

12.1.3 ... Define a Business Partner's Bank ... 543

12.1.4 ... Define Lockboxes for House Banks ... 543

12.2 ... Bank Chains ... 545

12.2.1 ... Define Scenario ... 546

12.2.2 ... Activate Scenario ... 547

12.2.3 ... Create General Bank Chain ... 547

12.2.4 ... Define Partner-Specific Bank Chains ... 548

12.3 ... Business Transactions ... 548

12.3.1 ... Manual Bank Statement ... 549

12.3.2 ... Electronic Bank Statement ... 554

12.3.3 ... Lockbox Processing ... 557

12.3.4 ... Cash Journal ... 560

12.4 ... Summary ... 565

13 ... Asset Accounting (FI-AA) ... 567

13.1 ... Organization Structures ... 568

13.1.1 ... Check Country-Specific Settings ... 568

13.1.2 ... Chart of Depreciation ... 570

13.2 ... Structuring Fixed Assets in FI-AA ... 576

13.3 ... Asset Classes ... 579

13.3.1 ... Generate Asset Classes from G/L Accounts (One-to-One) ... 579

13.3.2 ... Manual Creation of Asset Classes ... 582

13.4 ... Valuation ... 588

13.4.1 ... Define Depreciation Areas ... 589

13.4.2 ... Specify Transfer of APC Values ... 593

13.4.3 ... Specify Transfer of Depreciation Terms ... 594

13.4.4 ... Set up Areas for Parallel Valuation ... 595

13.4.5 ... Define Depreciation Areas for Foreign Currencies ... 596

13.4.6 ... Specify the Use of Parallel Currencies ... 596

13.4.7 ... Determine Depreciation Areas in the Asset Class ... 597

13.4.8 ... Specify Maximum Amount for Low-Value Assets and Asset Classes ... 598

13.4.9 ... Specify Rounding of Net Book Value and/or Depreciation ... 599

13.4.10 ... Specify Changeover Amount ... 600

13.4.11 ... Specify Memo Value ... 601

13.5 ... Integrating FI-AA with the General Ledger (FI-G/L) ... 602

13.5.1 ... Define How Depreciation Areas Post to G/L ... 603

13.5.2 ... Assign G/L Accounts ... 603

13.5.3 ... Specify Posting Keys for Asset Posting ... 605

13.5.4 ... Assign Input Tax Indicator for Non-Taxable Acquisitions ... 605

13.5.5 ... Change the Field Status Variant of the Asset G/L Accounts ... 605

13.5.6 ... Specify Financial Statement Version for Asset Reports ... 606

13.5.7 ... Specify Document Type for Posting Depreciation ... 607

13.5.8 ... Specify Intervals and Posting Rules ... 608

13.5.9 ... Activate Account Assignment Objects ... 610

13.5.10 ... Specify Account Assignment Types for Account Assignment Objects ... 611

13.6 ... Depreciation ... 613

13.6.1 ... Depreciation Keys ... 614

13.6.2 ... Maintain Depreciation Key ... 617

13.6.3 ... Ordinary Depreciation ... 621

13.6.4 ... Special Depreciation ... 622

13.6.5 ... Unplanned Depreciation ... 622

13.7 ... Special Valuation ... 623

13.7.1 ... Reserves for Special Depreciation ... 623

13.7.2 ... Interest ... 624

13.7.3 ... Revaluation of Fixed Assets ... 625

13.8 ... Master Data: Screen Layout ... 627

13.8.1 ... Define Screen Layout for Asset Master Data ... 628

13.8.2 ... Define Screen Layout for Asset Depreciation Areas ... 630

13.8.3 ... Specify Tab Layout for Asset Master Record ... 631

13.9 ... Transactions ... 632

13.9.1 ... Define Transaction Types ... 632

13.9.2 ... Define Account Assignment Category for Asset Purchase Orders ... 633

13.9.3 ... Assign Accounts ... 634

13.9.4 ... Allow Down Payment Transaction Types in Asset Classes ... 635

13.9.5 ... Capitalization of Assets Under Construction ... 635

13.10 ... Asset Data Transfer ... 637

13.10.1 ... Set Company Code Status ... 637

13.10.2 ... Specify the Sequence of Depreciation Areas ... 638

13.10.3 ... Data Transfer Parameters ... 638

13.10.4 ... Automatic Data Transfer ... 640

13.10.5 ... Manual Online Transfer ... 641

13.10.6 ... Legacy Data Transfer using Microsoft Excel ... 641

13.11 ... Preparing for Production Startup ... 642

13.11.1 ... Maintain Authorizations ... 642

13.11.2 ... Assign Workflow Tasks ... 643

13.11.3 ... Check Consistency ... 645

13.11.4 ... Overview for Experts ... 646

13.11.5 ... Production Startup ... 646

13.12 ... Information System ... 649

13.12.1 ... Define Sort Versions for Asset Reports ... 650

13.12.2 ... Define Simulation Variants for Depreciation Reports ... 651

13.12.3 ... Asset History Sheet ... 651

13.13 ... Summary ... 653

14 ... Consolidation Preparation (New) ... 655

14.1 ... General Specifications ... 656

14.1.1 ... Assign Scenarios and Customer Fields to Ledgers ... 656

14.1.2 ... G/L and FS Charts of Accounts ... 657

14.1.3 ... Transaction Types ... 662

14.2 ... Company Consolidation ... 665

14.2.1 ... Master Data Assignments ... 665

14.2.2 ... Maintain Document Types for Transaction Processing ... 667

14.3 ... Summary ... 668

15 ... Lease Accounting (FI-LA) ... 669

15.1 ... Lease Accounting Engine (FI-LAE) ... 670

15.2 ... Basic Settings ... 672

15.2.1 ... Assign Accounting Principles to Company Code ... 672

15.2.2 ... Create Company Code Grouping Key ... 673

15.2.3 ... Assign Company Code to Grouping Key ... 673

15.2.4 ... Assign Interest Calculation Method to Company Code ... 674

15.2.5 ... Specify Dates for Postings ... 675

15.3 ... Value Determination ... 676

15.3.1 ... Settings for Value Transfer ... 676

15.3.2 ... Value Determination using Determination Method ... 680

15.3.3 ... Value Determination using Substitution ... 681

15.4 ... Complete Mandatory Settings in Customizing ... 682

15.5 ... Reports ... 683

15.6 ... Summary ... 684

16 ... Travel Management (FI-TV) ... 685

16.1 ... Travel Management Process Flow ... 686

16.2 ... Set Up Travel Management ... 688

16.3 ... Set Up Trip Number Ranges ... 690

16.4 ... Travel Request ... 692

16.4.1 ... Define Other Travel Services ... 693

16.4.2 ... Define Travel Mediums and Estimated Costs to Be Approved ... 694

16.5 ... Travel Planning ... 696

16.5.1 ... Master Data ... 696

16.5.2 ... Rates and Discounts ... 701

16.5.3 ... Trip Rules and Profiles ... 704

16.5.4 ... Travel Policy ... 707

16.5.5 ... Process Control ... 711

16.6 ... Travel Expenses ... 713

16.6.1 ... Master Data ... 714

16.6.2 ... Trip Reimbursement Amounts ... 718

16.6.3 ... Wage Types for Interfaces ... 720

16.6.4 ... Transfer to Accounting ... 722

16.7 ... Employee Self-Service (ESS) ... 724

16.8 ... Integration of Travel Planning and Travel Expenses ... 725

16.8.1 ... Activate Request/Plan/Expense Report in Travel Manager and for Web Dynpro ... 725

16.8.2 ... Activate Integration: Travel Planning - Travel Expenses ... 726

16.9 ... Integration of Travel Management and Payroll ... 726

16.10 ... Reports ... 727

16.11 ... Summary ... 728

17 ... SAP Upgrade and Migration ... 731

17.1 ... SAP Upgrade ... 731

17.1.1 ... Technical and Functional Upgrade ... 732

17.1.2 ... SAP Enhancement Packages, SAP Support Packages, and SAP Support Package Stacks ... 732

17.2 ... Upgrade Strategy ... 734

17.3 ... Role of SAP Solution Manager in an SAP Upgrade ... 735

17.4 ... Upgrade Tools ... 736

17.4.1 ... Tools for Upgrades/Enhancement Package Implementation ... 736

17.4.2 ... Technical Upgrade/Implementation Tools ... 738

17.4.3 ... Change Management Tools ... 739

17.4.4 ... Testing Tools ... 740

17.5 ... Upgrade Process ... 741

17.5.1 ... System Preparation ... 741

17.5.2 ... SPDD Adjustments ... 742

17.5.3 ... System Upgrade to SAP ERP 6.0 ... 744

17.5.4 ... SPAU Adjustments ... 744

17.5.5 ... ABAP Remediation of Custom Developments ... 746

17.5.6 ... Testing and Issue Resolution ... 746

17.5.7 ... Cut-Over and Go-Live ... 746

17.5.8 ... Post Go-Live Support ... 747

17.6 ... Best Practices ... 747

17.7 ... Pitfalls and Issues ... 748

17.8 ... Migration ... 749

17.9 ... Summary ... 750

18 ... Miscellaneous ... 751

18.1 ... Factory Calendar ... 751

18.1.1 ... Define Factory Calendar per Currency ... 755

18.1.2 ... Assign Factory Calendar to Plants ... 755

18.1.3 ... Factory Calendar and Room Reservation Management ... 756

18.2 ... Schedule Manager ... 756

18.2.1 ... The User Interface ... 757

18.2.2 ... Individual Functions ... 760

18.3 ... Closing Cockpit ... 762

18.3.1 ... Schedule Manager vs. Closing Cockpit ... 762

18.3.2 ... Components ... 763

18.3.3 ... Transactions ... 763

18.3.4 ... Configuration: Process Flow ... 764

18.4 ... Conclusion ... 769

... The Author ... 771

... Index ... 773