From Neelima, UK

Dear Sir,

We pay Bought Ledger Invoices and Subcontractor Payments in respect of our various projects. These are generally costed to both a GL Account Code and also a WBS Code
typically Invoices are coded to one GL & Subcontactor costs to an other
1. In the course of constructing a new building part of the work may need a new technique or process. Eg in the course of building (say) a hospital, the wall alongside the X-RAY room may be constructed in a totally new way to screen the Radiation from reaching to room next door.
The normal business of construction continues, the building is constructed, suppliers & subcontactors are paid for the work done.
However, at the end of the year, when we are calculating the company tax payable to the government, we can claim a tax reduction based on the value of “ R&D – Research and Development – costs” in the year.
Obviously only a relatively small percentage of the invoices/subcontractor certificates processed in a year can be correctly classified as “R&D Relevant”.
While in a few cases we may be able to identify a particular suppliers invoice is “R&D relevant” prior to processing in SAP and coding it in an additional special way
Eg GL Acct 62000n + normal business required WBS code & similarly Subcontractors to
GL Acct 65000n + normal business required WBS code.
(set on the ME21N order for certificate posting information).
It is highly unlikely that all such invoices or subcontractor orders could have their “R&D relevant” status correctly assessed prior to invoice / subcontract certificate SAP FI / CO posting.
a) There are likely to be many invoice / subcontractor certificate postings that need subsequent “identification” “R&D relevant”.
b) It is inevitable that were some items (invoice / subcontractor certificate) identified as “R&D relevant” & coded in some way prior to posting (as 2 above), a subsequent review would identify such items as “finally NOT R&D relevant”.
c) Only a small minority of invoices/subcontractor items processed would be “R&D Relevant”, it would be impractical to attempt to “note / mark up” all non

2. REQUIREMENT
We need the means to be able to retrospectively note particular invoice / subcontractor items costed to Projects as “R&D relevant” or “Not R&D relevant”.
We should be able – on re-review – revise the classification.
we need to be able to list/report on the invoices/subcontractor items costed to a project – for a particular time period subtotalled by classification “R&D relevant” or “Not R&D relevant” or not classified (deemed to be Not R&D relevant).
Can you please advice the best way to meet this requirement in SAP.

Initial thoughts are to use long text field . But can an internal order with out having to settle but just as a memorandom or a flag is possible?
Your assistance is greately appreciated.
Many thanks,
Neelima.

SAP FI Issues

Hello Murthy


Hello, I am having some understanding issue in two of SAP FI’s module terms, “Client” and “Company” at some places it is mentioned that in an organizational structure, “Client” is a corporate group and it can contain one or more company codes, whereas, at some other places it is mentioned that the, “Company” is a corporate group and it can have one or more company codes. So what it is actually, is it the Client or the Company? Or both terms are inter-changeable? Moreover SAP Manual describes two aspects of a client, “Technical view” and “Commercial view” having a complete set of independent master data and a corporate group respectively. Your help in this regard is much appreciated. Thanks

Regards,

Mohsin Nabeel



----------

Hi Mohsin,

Let me explain the difference between client & Company, and a Company code



Client: Client is a part of Landscape of SAP systems which is setup for development/Configuration, Testing, and Production. These clients are setup as a separate boxes (which consists all the master, transactional data, front end to execute various t codes, and back end to perform the configuration of the system as per the requirements of the organization which is going to implement SAP



Initially configuration/development will be done in Configuration/development client (box), moved those changes to Testing client (by way of transport requests) for testing, and once testing is completed successfully, all the changes finally moved to production client.



Company/Company code: Company is called a Corporate group (say Wal-Mart which has its branches in each country, and each branch will have number of stores in that country.



So here Company is called the Wal-Mart Inc

And the Company code is the Branch which is located in each country (with its own currency and a set of GL accounts as per its country requirements.)

Finally the company will report its financials by consolidating all the company codes related data in a Group currency (say US dollars as the Wal-Mart Company is located in USA)

Hope the above explanation clears your doubts.



With Regards

Murthy Pillutla

Dear Murthy garu,

I am Narendra,from Guntur, AP trying for a job on SAP FICO.

I went through your blog and i must congratulate you for the effort you have put in.

I started attending interviews but unfortunately no luck till now.

I had a couple of doubts in FICO:

How to upload Opening balances into SAP.

Configuration steps required for BAD DEBTS and maintaining reserves and surplus

The tricky question in almost every interview i faced till now is " Explain your project"

The project in my resume relates to a manufacturing company.

I didnt know to answer this question.

Please help in this regard.

Thanks and Regards,

Narendra

Murthy's Response:

The Opening balances relating to GL, AR, AP, Assets, all other modules (MM, SD ect), and balances relating to Controlling area will be loaded into SAP system as a single balance or as a line items (based on the client requirement) by using LSMW, or CATT, or by using any custom program through Cut over activity (Cut over activity means – stopping the exiting functions of the system and loading both Master & Transactional data into the system)

Please note that prior to loading opening or transactional data; we need to load all Master data in SAP system. Please find below the Cut over activates which are to be executed once the Configuration/development activity is completed.

Cut Over Activities:

A) Pre – Go Live activities

1. Master data Load into Production system

2. Upload Cost center plan

3. Execute the allocation cycles within cost center accounting

4. Update planned activity

5. Calculate Activity prices

6. Execute product costing run

B) Pre – Go Live activities

1. Ensure all the customizing requests are in the production system

2. Ensure all the number ranges for all the modules have been maintained in

the production system

3. Ensure that Operating concern has been generated

4. Ensure that all the Customer Master data is loaded

5. Ensure all material masters (all material types) have been loaded

6. Ensure that all the Vendor Master data is loaded

C) Upload transaction data into system

1. Upload Open purchase orders.

2. Stock upload

3. Mark and Release the cost estimate

4. Upload Accounts Receivable and Accounts Payable open items

5. Asset Master and value upload

5.1 The upload of asset master and values through AS91

5.2 Transfer Asset balance into profit center

5.3 Remove the GL codes for asset from 3KEH table

5.4 Update the FI entry for asset through transaction OASV

5.5 Reinstate the GL codes for asset in 3KEH

6. Upload General Ledger account balances

2. Bad Debts Process in SAP system

Bad debts process involves the identifying the receivables, based on the client AR aging policy, as bad &writing off the identified AR as bad debts, and finally accounting for the recovered bad debts.

Steps:

1. Display customer account balances (FD10N)

2. Process Write-off transactions (F-30)

3. Perform collection of bad debts (F-21)

3. Reserves & Surplus:

Reserves & Surplus are created and added to the exiting balances based on the client policy. These reserves are the appropriations from the operating profits of the client for every year (like Bad debt/redemption reserves)

4. The other questions like Explain your project and manufacturing Company

These questions are to be answered by the consultant very smartly based on the Resume he/she presented to the client

Hello Murthy garu


I have joined a SAP FICO training course along with pragnya. Today was in my first class and it went well.
I just wanted to let you know that the documentation that you gave me was a big help when I was listening to
the class everything sounded familiar and more clear. I just wanted to say thank you for the guidance and support you have given me in this direction.
with regards
kalyani

Bloger response:

Hi Menka,


Check whether you have done variance calculation inKKS1 or KKS2 by removing test field selection
Then run CO88 (before doing this if you have CO-PA in place you need to enter the PA transfer structure in settlement profile
Settlement Profile (OKO7):
Under Valid Receivers check whether a valid receiver has been assigned (PA transfer structure).
Note: To know which is the valid receiver check the Settlement Rule maintained in the Order for which you are trying to do Settlement in CO88
If you see “Settlement not allowed” change that to optional or required.
Once you change as mentioned above, you will not get any Error

Regards
Murthy

Issue from Menka

Hi Murthy,


It was my pleasure talking to you. I am attaching my 2 tickets which I am struggling.
Can you please call me when you email me back so that I can log on to the system?
Please call me if you need any more screenshots or any other information.
Menka.

There are presently 5 production orders which are not settling and user is getting below error.
Please let me know how to go about with it.
Error message for 4 orders are common.
“Determine Variance before settlement “
As shown in below screen shots.
General Question
How to view the production order status I mean in below screen using SAP Tcode CO03
Under status it reads all TECO PRT PCNF PRC …..
So little confused.
If you can provide me general outline or steps for product costing and copa will be great.
I appreciate and thank you for your help and support
These are high emergency ticket can you please email me back with your reply at your earliest and give me call so that I can log on to my pc.

It is nice to be connecting with you Murthygaru.

I have the following doubt which I have posted on ITTOOLbox today.
Though you would be able to offer a solution:

I had defined Depreciation Areas 01, 60, 61, 62, 64.

But when I as trying to specify rules for transfer of APC values using TC OABC an unconfigured Depreciation Area 51 cropped up. And that is preventing me from going any further with the following message: Depreciation Area 51 not defined in the Chart of Dep/. The detailed message appears as follows:

QUOTE:
Depreciation area 51 in ch.of dep. Z999 not defined
Message no. AC526

Diagnosis
The function module FIAA_WRTAFB_CHECK/FIAA_PARAFB_CHECK checks depreciation area 51 in chart of depreciation Z999. However, this depreciation area is not contained in the table listing all the depreciation areas (T093/T093A) which the module checks.
Procedure
Inform your system Administrator.

UNQUOTE
Kind Regards,
Unnikrishnan
11, Shrivenham Road,
Swindon SN1 2QA

Dear readers,


As a beneficiary of this valuable service, I would like to thank this blog site's administrators, Mr.Murthy and Mr.Pavan for their priceless, noble service. Also, I would like to give heads-up to all those who are naive about SAP market in US, by sharing my own experience using this service.

I joined Mr.Murthy and Mr. Pavan's network few months ago and expressed my interest in pursuing a successful career in SAP FICO area. They immediately extended timely help, advice and guidance without any expectations. Their blog site came handy when I was preparing for SAP interviews and helped me face interviews with confidence. Today, I take pride in saying that I am a product of their networking service. Because of their assistance, I recently landed in an opportunity that meets my career goals and family requirements.

This is a pure, 100% service-oriented network that is keen in identifying talented SAP professionals and reaching out to those who are lacking career guidance. If you think you are talented, deserve to be more than what you currently are, have an obsession for challenge and passion for success; then this is the right time to seek for help. A network of talented SAP professionals, who don't expect anything in return, are at your service. Take advantage of their precious time, feedbacks, experiences, inspirations and testimonies.

Please reach out to Mr. Murthy at and take your first step towards a rewarding and aspiring career in SAP.

With cheers and best wishes,
Laxmi K

Validation rule for Plant-Company code posting

Hello Readers,
I have a scenario in which I have to restrict plant posting when i was posting company codes. Let me give the details.
Lets us say, I have to post a journal entry for a company code A and plant 1 only. We should not allow users to post journal entries other than Plant 1 when you are posting to company code A.
I am thinking of writing a validation saying that only plant1 is allowed to post when posting company code 0061.

I went through configuration transaction code OX18. But even if assign company code A to plant 1, system is still allowing me to post for other plants when I am trying to post in company code A.

Please share your thoughts on this.....

Thanks
Pavan

BAdI: Tax Jurisdiction Code from Delivery Address

Hi Sharavana,

Please find below solution for your issue on populating Tax Jurisdiction Code in a Purchae Order:

The Business Add-In (BAdI) ME_TAX_FROM_ADDRESS provides you with additional functionality to determine the tax jurisdiction code in purchase orders. At item level, the tax jurisdiction code maintained in the delivery address can be used for tax calculation purposes.


You activate tax handling with tax jurisdiction codes in FI Customizing (transaction OBCO). In the standard system, When an Enjoy purchase order (transaction ME21N) is created, the system takes the following sources into account for the jurisdiction code: reference documents (RFQ, contract), plant table, manual user input, account assignment object (if a tax jurisdiction code has been maintained there). In the process, the system overwrites the previous value in this list in each case. If, for example, you have maintained a tax jurisdiction code for a PO item with the account assignment object, this entry "wins" over the entry in the plant table.

If you implement the BAdI ME_TAX_FROM_ADDRESS, when a PO item is created, these tax jurisdiction codes previously determined by the system will be overwritten with the value from the delivery address. This also applies if no value has been maintained in the delivery address. In this case, the field remains empty. However, you can modi fy this behavior in the code of the implementation (cf. the following description of the example implementation). The checks provided in the system (e.g. whether the combination of tax code and tax jurisdiction code in the system is valid) continue to be run. If you implement the BAdI ME_TAX_FROM_ADDRESS, you must thus ensure that a valid tax jurisdiction code is always maintained in the delivery address. One option is to use an external system for tax calculation purposes here (e.g. Tax ware or Vertex). Or you stipulate in the implementation that an empty field is populated with a value from another source.

Manual input of the tax jurisdiction code by the user is taken into account in all cases. If the BAdI is active, however, input is only possible on the "Delivery Address" tab page, not on the "Invoice" tab page.

Requirements

• You can only use the functionality of the BAdI ME_TAX_FROM_ADDRESS in the "new" purchase order transaction ME21N. In the "old" PO transaction ME21, the code is not utilized.

• For the country belonging to the plant/company code of the PO item, tax handling with tax jurisdiction codes must have been activated.

• The system message 06 263 "Tax jurisdiction & of account assignment adopted in item", should be set to ' ' ("no message") in Customizing for Purchasing (transaction OLME -> Environment Data -> Define Attributes of System Messages -> System Messages).

Example

In the example implementation for BAdI ME_TAX_FROM_ADDRESS supplied, the following system behavior is defined:

• The tax jurisdiction code from the delivery address is set.

• If no value has been maintained there:

- A warning message is issued

- The value for the jurisdiction code previously determined by the system is inserted again

- The cursor jumps to the "Delivery Address" tab page, giving the user the opportunity to correct the tax jurisdiction code manually.

The following data is available to control the system behavior in determining the tax jurisdiction code with the BAdI:

• Purchasing document header (EKKO),

• Purchasing document item (EKPO) - old and new status

• Account assignment data for item (EKKN),

• Tax jurisdiction code from delivery address

• Tax jurisdiction code from plant table


Regards

Murthy Pillutla

Jurisdiction code determination in a PO

Murthy,

How the jurisdiction code is determined in a PO? Most of the time it
is defaulted from the plant. When a cost center is entered, the cost
center jurisdiction code overwrites the plant code. Is there any
sequence in the configuration? Or is it from a user exit/BADI?

Thanks,
Sharavana

Hi murthy,

Can u please send me 3 critical issues and solutions in SAP FI
thanks in advance
Thanks & Regards
G.Narayana
8892789544

Hi Narayana,

Please find below some scenarios


Accounts Payables



Question: Problem in running a automatic payment program. Suppose we have a balance of $125000 in my bank account and today we running an Automatic payment run. Total payment of the run is $175000. So when we run Automatic payment run it is not giving any error message. What to do with this problem.

Answer: The Automatic Payment Program does not check the Balance of your Bank Account. (GL A/c. Bal.) What it does check is the min & max amounts that you have maintained in your customization.
In Bank determination (FBZP), you have to fill in the available amounts for each Bank. This is the maximum amount up to which payments will be generated by the Auto. Pay. Run.
So if you want to ensure that on any single day the payment run does not pay more than bank balance, you have to update on a daily basis available balance to match with your bank balance.

Accounts Receivables:

A. How SAP handles the Dunning process?

In SAP system there are 9 predefined payment reminder notices which we can directly use as a notice for the particular customer relating to one dunning area (OB61)

You define your dunning levels in the dunning procedure (FBMP), and you may define as many as 9 dunning levels. To simplify, dunning levels may be understood as counter for the dunning notices you send to your customers:

- for dunning level 1 you will send him a kind payment reminder

- for dunning level 2 you send him a reminder (not so kind)

- for dunning level 3 you add to the reminder a deadline for payment etc...

So the dunning levels will reflect the number of letters sent, also the number of days the items is overdue (Interest will be calculated based on number of days & amount –OB42, and dunning charges will be calculated based on overdue due amount specified in notice),and dunning text(type of notice –Reminder/formal/with interest/) will be specified per dunning level Following a dunning run (F150), the dunning procedure/area/level/ block reasons, is updated in the customer master record (FD01) and in the open items.

B. Lock Box

Question: We are using partial payment option in lockbox (OB10) and we have 0 tolerance at both customer and user level.
The customer has an open invoice of $82500 and that he pays $95000 towards this invoice.
When tested this scenario
- the check status as applied and
- the Invoice and the payment document is still open.
What is the reason for this situation?

Answer: The check status applied is that because of ‘0’ tolerances, lockbox applied the cash to that invoice. If we had any tolerances then overpayment beyond the tolerance amount is not allowed and that the amount sits on the account.
Coming to the point b, because the customer is overpaying the invoice (not exact invoice amount) the invoice is still open.

Asset Accounting:

What is unplanned Depreciation and when we post it?

Unplanned depreciation (ABAA)

Use this procedure to post an unplanned depreciation manually. Ordinary depreciation reflects the deduction for wear and tear during the normal use of the asset. Unusual influences, such as damage that leads to a permanent decrease in the value of the asset, are covered by unplanned depreciation.

CO-PA

Question: Client requires the CO - PA report (KE30) match with their Profit & Loss Account ( F.01). Our doubt is the revenues we can get from SD, But other Incomes (ex : Interest recd, Excess Expenses paid recovered, Excess Taxes paid recovered etc ) and the Expenses how can we get the values in our CO - PA report. So, overall  we want the CO-PA report like Profit and loss account. How it can be achieved?
Answer:

1. For a complete reconciliation between FI P&L with COPA, the best way is to activate Account based COPA and develop reports. Also ensure that all the P&L GL accounts have to be created as Cost elements

                                                                              or
2. All FI postings which were not flown to CO-PA through PA transfer structure can be uploaded directly into CO-PA through T code: KEFC, but prior caution is needed while preparing the upload file where appropriate value fields are to be selected. This way we can run the KE30 report in close proximity to F.01 report.
Correct me if I am wrong in any scenario

Murthy Pillutla

OB52 month end closing issue authorisation group issue

Dear viewers, I had some issues in closing the year earlier this year. I thought it is a good idea to share. In OB52 screen, there are 9 fields after the accounts. PROBLEM1: There were many access issues for many period end transactions all over the company. RESOLUTION: I found out that someone who has access to OB52 had introduced Authorization group 01 for acct type "S", which restricted the access of all the transactions. I made this field(Authorization group) blank as there are only two people who has access to OB52 in the whole company. I found that there is no reason to maintain this field. This field is to be maintained only if you want to segregate the authorization according to "account types". Basis team has to maintain authorization groups assignment in the background. PROBLEM 2: Even after closing the previous period, since the Second period from and to are opened from couple of years back, any user can post in the previous periods. One user posted a journal it in the previous year because of this scenario. Resolution: Second period(from and to) were made restricted to 13 and 16th period of previous year for special period postings only. After few days, business came to me and asked to leave the second (from and to) periods blank. I explained them saying that the first (from and to) periods can be the only one that can be maintained but it is recommended as a best practice to maintain the second(from and to) period as 13 to 16 of previous period.

EXCHANGE RATE TYPE in SAP in OB08 (Foreign currency revaluation issue)

Dear Viewers, Problem: I recently added company codes for swizz, Germany and others. I had to define the exchange rate types in OB08(directly in QAS as this is non transportable), I got a green message saying that "You dont have maintainance authorization" SOLUTION: In order to have exchange rate type to be saved, we have to define the translation ratios in the following config: SPRO-->SAP NETWEAVER-->gen settings-->currencies-->define translation ratio. I defined 1:1 in my case and it worked.

Change in Actual Cost center in Statistical internal order

Dear viewers I got a request from the business asking me to change the Actual cost center field in one of the statistical internal order. I know that the change in the actual cost center field is not recommended. This field will be greyed once you use the internal order on purpose by SAP to avoid the inconsistencies in the internal order postings. Solution: Inorder to change that field in the internal order, we have to implement SAP note: 198036.

R-Block issue in service based POs

Murthy Garu, I would like to share one of the issues I had last week. Problem: In our configuration, tolerance keys PP and PE were defined as 5% or 250% as both the limits. But when we create a SERVICE PO for 1000qty and $1 each, the invoice was not allowing to pay even $1001(not accepting even $1 tolerance also). It was shooting an R-BLOCK in the invoice posting. SOLUTION: In a service based PO, Material field is blank and GR/IR is unchecked in the line item level. In order to resolve this issue, I had put a check mark on Estimated price in the control condition tab in the line item level. If we just check this field(Estimate price), the PO is not going to look at the tolerance keys PP and PE. We have to define PS tolerance key(transaction code OMR6), as the service PO is going to look at PS since we checked Estimated price. Note: PE is defined in the following config: SPRO-->MM-->Purchasing-->Purchase order-->Set tolerance limits for price variance

Depreciation on an Asset without clearing Down Paymens:

Basically unless you own,Capitalize, and put to use of an asset we can not depreciate it.

You can create a PO and with that reference you can make a down payment through F-48 for a particular asset.

Options for depreciating an asset:

1. When you have invoices for down payments the best way is to collect the costs on an AUC. and when all the costs are collected settle the costs to the final asset,Then you depreciate the asset.

2.If you don’t want to create a AUC, thren while making Down Payment don’t enter the asset number. If you want reference you can enter the PO number or info in text column.

Note: If you enter only PO number then the asset number is getting picked up automatically.,thus getting capitalised and depreciaiton is calculated.

3, If you do not want to use AUC, then change the depreciation key to "0000" for the asset getting capitalized through PO, and when it is really in use replace "0000" with correct depreciation key and depreciate start date.

Correct me if I am wrong.

Reg: Depreciation Run

Hi,

I have one doubt. Pls give ur suggestion.

Is it possible to run the depreciation without clearing the downpayment.

Regards,

P.BABU

Issue in changing the subject of PAYMENT ADVICE E-mail

Hi Murthy/Pavan,

 

 

 

Here I have an issue of changing the subject line of an payment advice  that was sent through an email. Can you Guide us. At the same time I want to know the configuration settings that has to be made regarding this email settings.

 

 

Thanks

Venkata Pulagam

SAP FI Consultant

DTT

1 Braxton way, Glen mills, PA, Zip code :19342

Tel/Direct:

vpulagam@deloitte.com | www.deloitte.com

 

 

This message (including any attachments) contains confidential information intended for a specific individual and purpose, and is protected by law.  If you are not the intended recipient, you should delete this message. 

Any disclosure, copying, or distribution of this message, or the taking of any action based on it, is strictly prohibited. [v.E.1]

Message type of error M8 155

Hi Pavan,
You have to change the message type of error M8 155 to an information message or warning with transaction OKZZ. Message M8155 links to message CKPRCH025.

Issue with message M8155

Murthy garu,
In MM02, in costing tab, I want to update the price unit from 183 to 105 for one of my materials. It gives an error saying that Std cost estimates already exists. I open that help on this error, now it says to change the message number M8155. My question is how to change the message number M8155 to wanring

Please suggest

Pavan

SAP Market

Update on the SAP Market


We see or hear about this recession that we're in just about everywhere we turn. I'd like to share some thoughts about what we see in the market about SAP Talent.



Strictly in terms of SAP, we don't see a recession or at least the current indicators are that maybe it hasn't caught up with us yet! Below are some market indicators that we see, and I'm curious to know if any of you are seeing similar indicators or different?

1. All the Fortune 500 clients and SAP Consulting Firms are hiring people at all levels and in all skills sets throughout the United States.

2. The SAP Market seems hot in major markets like: Chicago, Atlanta, Dallas, Houston, St. Louis, Minneapolis, Milwaukee, Florida, NY/NJ, and in California.

3. We see a little bit of a slow down in markets like Detroit, Michigan and Ohio but it isn't dead by any means.

4. The SAP Consulting Market seems to be very strong. Indicators include the fact that 50% or more of the people are in consulting. Bill rates are strong. Great SAP Talent are always on project and can easily get multiple contract offers in a fairly short time.

5. Major companies are committing to NEW SAP implementations and major upgrades creating large-scale hiring projects and opportunities for consulting partnerships

6. Certain industries are really HOT - including Medical Device/Equipment, Pharmaceutical, Banking/Insurance, Aerospace & Defense, Mining (Gold/Copper/Coal), Energy/Utility, Hi-Tech Mfg, and the Public Sector. We see a little slow down with Manufacturing, Food/Beverage, CPG, and Chemical industries.



7. Companies are still seeking SAP Direct-Hire talent and are willing to pay very healthy fees & relocation to get the talent they seek, but many of clients are still very picky and in a very tight candidate-market, it results in open positions for sometimes 3-6 months.

8. Companies & Hiring Authorities that realize we're in a very tight candidate-market are seeing success through a very quick interview-to-offer process.

9. GREAT SAP Talent in today's market, generally speaking, can easily find a very good opportunity to take advantage of their talents. (Especially those in major markets or willing to relocate)

10. The guess is that 40-60% of all companies that run SAP in the U.S. are open to transferring a visa if the person still has 2-3+ years remaining to work on a visa. Even these companies may be picky to hire someone with great soft-skills and very solid SAP technical skills and wait 6 months - 1 year before helping with Green Card Processing.

11. Lastly, certain SAP skills seem to be in HIGH Demand including: Netweaver, XI, Enterprise Portals, BI 7.0, APO, CRM, SCM/SRM, WM, IS-Retail, AFS, HCM, and as always FI/CO!



In summary, the market indicators shows that many of our country's major Fortune 500 companies across industries and across the U.S. are still hiring!



(Thanks to Jeremy Sisemore for his great analysis on SAP market)

Validation and Substitution

Validation(OB28)


A validation rule is basically a check on a certain field's data. When a user is entering a transaction and enters data in that certain field which violates the validation rule, a error message appears for the user and generally will not allow the transaction to continue. The functional analyst designs the validation rule in one of several transactions. You can set them up to be called at the Document Header level, at the Line Item level.
These checks are created in transaction GGB0 and activated for FI in transaction OB28

Substitution(OBBH)

The substitution rule also checks a certain field's data (that you design in configuration). If the field's data matches what has been configured in the substitution rule, the data will be removed. Then specific other data will be substituted into that field. Substitutions can also be set up at the header, line item, or complete document level, and if a certain set of user-defined criteria are met, then a new value is put into a specific field. For instance, if Company = X and Cost Center = Y, then change Profit Center to be Z. It doesn't work on all fields, but can come in handy for Profit Centers or Allocations, and sometimes Texts such as SGTXT.

Substitutions are set up using GGB1 transaction and are activated in FI using transaction OBBH.

Invoice verification

Invoice verification in SAP is a solid and efficient process.


Select Logistics  Materials Management  Logistics Invoice Verification  Document Entry  Enter Invoice.- MIRO



Invoice frication allows you to capture the details of vendor invoices. If the details of an invoice match the expected details that are specified by any related purchase order and goods receipts, the invoice can be automatically made available for payment. Unmatched invoices are excluded from the payment run and need to be investigated and released before payments can be made.

The main aim of any invoice-verifrication process is to ensure that vendors are paid the correct amount at the right time ( not too late but also not too early ). The process should have a high incidence of first-time matching, to ensure that as little time as possible is spent trying to manually match invoices that appear to be incorrect. It is important to include as few steps as possible in the process, considering that the process of handling payments does not in itself add value to the company or to the vendor.

The Main Steps

1. The capture of the vendor’s invoice details (T code: MIRO)

Note: This also includes the automatic release for payment if the match is successful.

- First ensures that the details entered add up mathematically.

- Second checks to see if the invoice should be blocked or made available for payment.

2. Handling of mismatched invoices (T code: MRBR)

The handling of mismatched invoices occurs in transaction MRBR , which also includes the release for payment if the invoice is successfully matched. Mismatched invoices are those where the details on the invoice do not match the details expected according to the purchase order. This transaction lists all of the invoices that have been blocked for payment.

MRBR should be checked regularly, and this transaction should be seen as the sole transaction for managing the release of blocked invoices . You can list blocked invoices by vendor , by date, by purchasing group , or by user, among other criteria. The system will then display the blocked invoices that match the selection options, and you will then be able to release invoices manually.

Using Workflow when Mismatches Occur:

MIRO can trigger a workflow message ( normally an SAP mail or email message that can be formatted to suit your needs ) to an appropriate user whenever a mismatch occurs. This is normally a request to correct a price or complete a goods receipt to make the details match the invoice.

Parking Invoices

Menu option> Edit > Switch to Document Parking

This option is used to address situations where, for whatever reason, the user does not wish to complete the invoice-verification transaction but wishes to keep the data entered so far.

The other option is to start off by using the Invoice Parking function directly, instead of MIRO, using transaction MIR7 . This is used in situations where you know that you will not want to process the invoice at this stage.

Automatic invoice release

There is actually no setting for automatic invoice release for payment as such. If you have an invoice that is blocked because the goods receipt has not yet been posted and then the goods receipt is posted, the invoice will not be automatically released for payment. However you can use transaction MRBR in a scheduled job with the flag release automatically set on, and this will then release all invoices where the blocking reason is no longer relevant. This will then act the same as an automatic release, but will only release when the job has run. Ideally, this should be at least once a day.



3. The release for payment of matched invoices

4. Posting of accounting entries involved

a. During Invoice Verification

G/R I/R Account - Dr

Vendor – Cr

b. during Goods Receipt

Stock Account - Dr

G/R I/R Account – Cr

Invoice verification process in SAP

Hi, I got an interview question that 1.How does an invoice verification process happen in SAP and what are all the steps? 2.What are Valuations and Substitutions and  tell briefly how it works.? If anybody know the answer please help me. Advance thanks, Gopi

Thank you for your solution for account determination problem

Murthy Sir,
I am thankful to you for your timely/prompt support and solution that you had given yesterday regarding the account determination and integration with COPA issue. I greatly appreciate your promptness and motive to help others in an urgent problem situation. I followed the steps in the document (solution) that you provided within one hour. Your solution really worked and it was of great help for me. The accounts were assigned to ERL instead of ERS and that is why I could not get the deductions into accounting. Also cost element category 11 was not assigned which is the reason why revenues were not flowing through COPA. I followed your solution by checking the configuration and tested. It really worked after your solution was implemented.
Not only at this time that I got timely help from you but also right from the beginning of my career. Your timely support is helpful in getting success for me. At this instance, I want to highlight some of scenarios (just to mention a few) where you were helpful to me:
Creating IDoc to interface between legacy systems and SAP at HD
Global COPA/Product costing implementation at Nestle
Design of flash sales between different company codes within SAP
Integration project between FI-SD-COPA-MM
Defining an enhancement to update the credit master in scheduling agreements in SD.
The above are some of the crucial projects that your support really helped me reach my milestones in the projects. You have extremely wide range of knowledge and expertise in all sub modules of SAP FICO and its integration areas.
I restored all the solutions and documents you designed to make things easy. I felt that I want to write this message in your blog as an appreciation of your sincere effort in distributing your great knowledge and expertise thereby helping others.

Thanks,
Pavan Challa

Issue with Credit block for deliveries

Hello Sir,

I hope everything is going fine with you. I have a small issue that I encountered at my client. let me explain the scenario first
Presently whats happening: I create a sales order. I will make the customer of the sales order Bankrupt and give the credit limit as $1 in FD32 and run F.28 to update the sales document. Now If I go to the menu of sales order and deliver, there will be a message saying the sales order is blocked for credit check. Now I go to VKM1 and release the sales order & save. I will go to the menu of the sale order and deliver, it is creating subsequent documents like deliveries and so on.
What business wants: The client wants to have the credit check for deliveries as well. How do I do that? I check the configuration in OVA8, OVAK,OVAD and other credit transactions. Please try a solution for me

Remember that we are using dynamic automatic credit check as the simple credit check is obsolete

Please help me with this issue

Thanks
Pavan Challa

Windows Live Hotmail

Windows Live Hotmail

Question: Why and How we Revalue the Fixed Assets in SAP?

Answer

Purpose of Revaluation
A revaluation of fixed assets is a technique that may be required to accurately describe the true value of the capital goods a business owns. The purpose of a revaluation is to bring into the books the fair market value of fixed assets. This may be helpful in order to decide whether to invest in another business. If a company wants to sell one of its assets, it is revalued in preparation for sales negotiations.

Procedure for Revalue the Fixed Assets:
1. Go to OABW and check both revalue APC and depreciation in the depreciation area where you want to post. This would help in identifying the area where the revaluation will have to be posted.
2. Go to OAYR and select the company code. Then click on the posting rules.
In the book depreciation area, go to other posting settings. Check post revaluation. This setting is required for posting the revaluation amount.
3. Go to AO90 and Create a revaluation APC as well as clearing account. The revaluation APC has to be a recon account and the revaluation clearing a P&L. Similarly create for depreciation as accumulated and a normal P & L.
4. Now go to ABAW, and select the asset to be revalued. Put the transaction type as 800. Press enter.
In the next screen give an asset value date, amount to be posted as revaluation. Now click save. An asset accounting document will be generated.

Note:
This revaluation amount will not be posted automatically. Once depreciation run takes place then only the amount gets posted to the GL account. Hence it is advisable to run at the year end.
Also the depreciation run has to be for the first time in order to get the revalued amount to be posted. Otherwise, the amount will not be posted in the GL account.
Run the Depreciation for a period in AFAB. If you do a test run you would be able to see the revaluation amount that has to be posted and the same would be reflected in the planned values in asset explorer (AW01N).
Same won’t be reflected in the posted values unless the depreciation run was not a test run.
Once the depreciation run is done, revaluation account APC will be debited and the revaluation clearing account will be credited.
This revaluation account will then be transferred to P & L account by passing a manual entry.

Can you please Provide details of Asset Asset Accounting in SAP?

Asset Accounting in SAP
 Asset Accounting records all accounting transactions relating to the management of assets.
It consists of the following
- Asset Master Data
- Accounting Transactions in Asset Accounting
- Closing Procedure in Asset Accounting
 Each asset belongs to a company code and business area. All postings made for the asset (acquisitions, retirements, depreciation, etc.) are applied in the assigned company code and business area.
 Additionally, you can assign the asset to various CO objects (cost center, internal order, activity type) and logistic organizational units (for selection purposes only).

Asset Class
 The asset class is the main criteria for defining the asset. Each asset has to be assigned to an asset class. In the asset class, you can define certain control parameters and default values for depreciation and other master data.
 Assets that do not appear in the same line item of the balance sheet (such as buildings and equipment) have to be assigned to different asset classes. Additionally, there is at least one special asset class for assets under construction and one for low-value assets. The asset classes used by IDES for this are:
 4000 For assets under construction
 5000 For low-value assets
 Note 1: You can also create asset classes for intangible assets and leased assets. There are functions available for processing leases.
 Note 2: The application component PM (Plant Maintenance) is used for the technical management of assets. The application component TR (Treasury) is used for managing financial assets.

Asset Valuation
 It often occurs that asset balances and transactions need to be valuated differently for various purposes. You may, for example, use various valuation methods for:
 Financial statements based on regional requirements
 Financial statements for tax purposes (if a different deprecation method is allowed)
 Controlling (costing)
 Parallel accounting methods for group financial statements (per IAS, US-GAAP, etc.)
 In order to keep more than one valuation basis, so-called depreciation areas are kept in the R/3 System. Separate transaction figures are kept in each area:
 per asset and depreciation area
 For individual value components such as balances, depreciation, remaining book value, etc.
 Various data is stored in the asset master data for depreciation areas and controls the calculation of normal and special depreciation for the special depreciation area. You can thus use a different depreciation method for general business procedures than the depreciation method required by the tax authorities.

Integration of Asset Accounting with General Ledger
 Since the depreciation areas in asset accounting do not exist in the general ledger, these values have to be posted to various G/L accounts in the general ledger. The G/L accounts are then used in various financial statement versions (financial statements per GAAP, financial statements for tax authorities, group financial statements, and so on).
 These G/L accounts are:
 Balance sheet accounts, which record the adjustments to the asset's value
 Depreciation accounts for depreciation and appreciation
 The assignment of the G/L accounts to various valuation areas is saved in a single account assignment key, which is entered in the asset master record. Assets of the same asset class all have the same account assignment key, that is, their values are all posted to the same reconciliation accounts.
 Note: Many companies prefer to keep parallel valuations in Asset Accounting (either statistically or for information purposes) and not in the general ledger. In this case, you do not need to make the related G/L account assignments.
 For reporting purposes, parts of an asset can be kept under asset sub-numbers, and assets can be combined in group assets.
 The main asset is assigned the sub-number 0000, allowing the asset sub-numbers to be assigned as desired.
 A group asset has its own master data. Several main assets can be assigned to a group. This is important in the USA.

Transaction Types in Asset Accounting
 The transaction type is an addition to the asset posting keys 70 and 75 and it has to be included when posting to an asset account. The transaction type is necessary for asset accounting, since it specifies exactly where the asset posting is listed in the asset history sheet.
 The transaction type is the distinguishing characteristic of the various asset postings, which include:
 Buying and selling
 Credit memos
 Acquisitions from internal production
 Adjustment postings
 Retirements without revenue
 Depreciation and appreciation
 and so on
 Asset transactions (acquisitions, retirements) can be posted in various ways to meet the organizational and business requirements of the company. In FI-AA you can post:
 Without a vendor or a purchase order. The offsetting entry is made in a G/L clearing account.
 Integrated with A/P but without reference to a purchase order.
 Via materials management using the MM functions (purchase order, goods receipt, invoice receipt).
 When posting to accounts of two subsidiary ledgers, the reconciliation accounts of both subsidiary ledgers are updated in the general ledger.

Unplanned Depreciation
 Unplanned depreciation is posted if something happens to the asset which permanently lowers the asset's value.
 As with every asset transaction, you need to use a specific transaction type for unplanned depreciation.
 It is possible to enter different values in the various valuation areas for the damages incurred. For example, the company may set the loss higher for cost accounting than for the company's financial statements.
 After posting the transaction, the unplanned depreciation is saved as planned values. The actual amounts are posted when the depreciation posting run is carried out during closing.

Assets under Construction
 The expenses for assets under construction can be managed in two ways:
 In the application component IM (Investment Management), you can create, post, and manage investment orders. These orders are then reconciled with the asset under construction. IM provides extensive functions for supporting investment procedures.
 If IM is not used, the asset under construction can be posted to directly in Asset Accounting, since assets under construction rarely occur.
 Once the asset is complete,
 master data has to be created for the completed assets
 The values from the asset under construction account have to be posted again as completed assets, and the assets have to be activated. To do so, the expenses can be distributed to several asset accounts using a distribution rule.

Asset Explorer
 Asset Explorer offers a clear overview per depreciation area, asset, and fiscal year for:
 Planned values
 Posted transactions
 Posted amounts
 Posted and planned depreciation
 Depreciation parameters

Closing Procedure in Asset Accounting
 Closing can roughly be divided up into two types of work:
 Legal requirements (mandates required by the government)
 Technical/organizational tasks (preparatory steps that are necessary technically or that support the accounting organization)
 The switch to the New Year is completed in the old fiscal year, thus carrying the balances of the asset accounts forward to the new fiscal year.
 At the beginning of the new fiscal year, a technical reconciliation is performed, which compares the transaction figures in Asset Accounting with the corresponding figures in the G/L accounts.
 Afterwards, inventory is taken and adjustment postings are made should any corrections need to be made. The depreciation posting run posts the depreciation to the general ledger.
 Since only one depreciation area can post its asset postings to the general ledger, the additional, relevant depreciation areas are posted to the general ledger using a program (periodic asset account postings).
 The asset history sheet can now be created.
 Note: Different steps in the closing process may be required in certain countries. Your trainer will be able to explain the main features that are specific to your country.

Asset Inventory
 You can create one or several inventory lists with the R/3 System for the inventory process. The lists are given to the employees who complete the inventory check. They note any discrepancies and return the list to the accounting department, and the accountants enter the corrections in the system.

Depreciation Posting Run
 All depreciation (normal depreciation, special depreciation, unplanned depreciation) is initially kept in the form of planned values in Asset Accounting. Only after the depreciation posting run has been completed is the depreciation actually posted in Asset Accounting. Additionally, a batch input is created which contains the postings for the G/L accounts. When this is run, the depreciation is posted to the corresponding depreciation accounts.

Asset History Sheet
 The asset history sheet is the most important and most complete evaluation available for closing. As with financial statements, the structure of the asset history sheet is based heavily on country-specific requirements. It is thus possible to create various asset history sheet versions.
 Each asset history sheet version contains various history sheet groups such as:
 Book values at the beginning of the fiscal year
 Acquisitions
 Retirements
 Adjustment postings
 Depreciation
 Book values at the end of the fiscal year

Configuration Steps for Asset Accounting
1 EC08 - Copy Chart of Depreciation
2 FTXP- Creation of 0% Tax Codes
3 OBCL- Assign Tax Codes for non-Taxable Transactions
4 OAOB- Assign Chart of Depreciation to Company Code
5 IMG -Specify Account Determination
6 IMG - Create Screen Layout Rules
7 OAOA- Define Asset Classes
8 AS08 -Define Number Ranges for Master Classes
9 AO90 -Integration with GL
10 OAYZ –Determine Depreciation Areas in Asset Classes
11 IMG - Define Screen Layout for Asset Master Data
12 AO21 - Define Screen Layovers for Asset Depreciation Areas
13 FBN1 - Define Number Ranges for Depreciation Postings
14 OAYR - Specify Intervals and Posting Rules
15 OAYO - Specify Round up Net Book Valuation
16 Depreciation Keys
17 Define Base Methods
18 AFAMD - Define Declining Balance Methods
19 AFAMS – Define Multi level Methods
20 AFAMP – Define Period Control Methods
21 AFAMA – Define Depreciation Keys
22 AS01 – Asset Master Creation
23 AS11 – Creation of Sub-Asset
24 F-90 – Asset Purchase Posting
25 AW01 - Asset Explorer
26 AFAB – Depreciation Run
27 F-92 – Sale of Asset
28 ABUMN - Transfer of Asset
29 ABAVN - Scrapping of Asset

Asset Accounting: Accounting Entries:

1. Acquisition: With Vendor -F-90
Fixed Asset a/c Dr
(With acquisition cost)
Vendor Cr
2. Asset Disposal – Sales to a Customer: - F-92
Dr. Customer account (A/R)
Cr. Revenue for asset disposal
Cr. Fixed asset – acquisition cost
Dr. Accumulated depreciation
Dr. Clearing account for asset disposal
Cr. Gain/loss of fixed asset disposal
The posting date of the retirement posting will also be updated into the field "deactivation date" in the asset master as the retirement date.
3. Asset Disposal – As a Scrap -ABAVN
An asset could be disposed as a scrap. In this case, no revenue is expected and a loss will be realized in the P&L if the fixed asset being scrapped still carries a net book value.
Cr. Fixed asset – acquisition cost
Dr. Accumulated depreciation
Cr. Gain/loss of fixed asset disposal
4. Asset Transfer within a Company – Reclassification
The NBV(Net Book Value) of an existing asset master record could be transferred to another asset within the same company.
Cr. Asset – acquisition cost (old asset)
Dr. Accumulated depreciation (old asset)
Dr. Asset – acquisition cost (new asset)
Cr. Accumulated depreciation (new asset)
The old asset being transferred will become a retired asset and the transfer posting date will be updated as the retirement date in the asset master record. For the new receiving asset, the transfer will be the same as if it is being acquired. The transfer posting date will be used as the capitalization date.
5. Asset under Construction (AUC)
(Internal Order as Investment Measure)
1. Define the AUC Asset Class (with investment measure) - OAOA
2. Define the Asset Class – for Main Asset - OAOA
3. Define Investment Profile - OITA
 -Assign the AUC Asset Class (Step-1) in the investment profile
4. Assign Investment Profile to Model Order - OITA
5. Define Order Type (Investment) - KOT2
- Settlement Profile - OKO7
- Maintain Allocation Structures - OKO6
- Planning Profile - OKOS
- Budget Profile - OKOB
6. Create an Internal Order - KO01
- With the Investment Profile
- AUC automatically created by the system using Asset Class given in the Investment Profile
1. Post the amounts to IO - FB01
Dr. Material supplied to Asset (Expenditure)
Cr. Cash account
2. Settle the amounts to AUC from IO (Pricing type: Automatic) - KO88
Dr. Asset under Construction account
Cr. Contra Capitalized
Create the Main Asset - AS01
3. Settle the amounts to Main Asset from AUC - KO88
Dr. Final Asset account
Cr. Asset under Construction account
4. Sale of Asset from One Company code to another Company code
A. If Selling and Buying Company is separate Entities:
In Selling Company:
A/R Posting
Dr Customer a/c (for the sale value)
Cr Revenue –Asset Retirement
Asset Posting
Dr Clearing of Asset Retirement
Dr P&L (Loss)
Dr Accumulated Depreciation
Cr Asset
In Buying Company:
Dr Asset
Cr Vendor
Note:
- Posting date of the document will be copied into the asset master as the capitalization date.
- The depreciation start date of each depreciation area will also be determined and updated in the depreciation area data tab page.
- Asset acquisition posting could also be done without PO from the MM module.
- Posting could be done in FI posting only.
B. If selling and buying Company is Inter Companies - ABT1N
An inter company transfer in the asset history sheet can be an asset acquisition in one company code and an asset retirement in another company code. Fixed assets can only be evaluated at client, and not company code level.
In Selling Company:
A/R Posting
Dr Inter Company Customer a/c
Cr Revenue –Asset Retirement
Asset Posting
Dr Clearing of Asset Retirement
Dr P&L (Loss) $1300
Dr Accumulated Depreciation
Cr Asset $6000
In Buying Company:
Dr Asset
Cr Inter Company Vendor
1. Note:
- Posting date of the document will be copied into the asset master as the capitalization date.
- The depreciation start date of each depreciation area will also be determined and updated in the depreciation area data tab page.
- Asset acquisition posting could also be done without PO from the MM module.
- Posting could be done in FI posting only.
2. Note:
The process for posting intercompany transactions is as follows:
- The initial entry is parked.
- Then an email is sent to the other branch to view the document.
- On approval of the transaction, the parked document is then posted to the g/l in both companies. The company receiving the revenue will be the one responsible to book into system using the US dollar as base currency.
5. Month End Processing – Depreciation Run-AFAB
Dr. Depreciation expense
Cr. Accumulated depreciation

Asset Accounting in SAP ECC 6.0
a. Fixed Assets can have multiple depreciation areas to handle multiple GAAP requirements. e.g., Local GAAP vs. US GAAP.
Note: Specify the General Ledger that is posting to Asset Accounting (Define valuation areas for parallel valuation, and Delta valuation area to post valuation deference)
• Depreciation area 01 – Asset valuation area 01 (will always link to the Leading Ledger)
• Depreciation 02 and depreciation area 12 – Other asset valuation areas that can be tied to NLs as required.
b. The program used for transaction ASKB has changed to RAPERB2000 and for AFAB, it is RAPOST2000
c. Functional area assignment is mandatory
d. Previously in 4.6C we use to give the batch ID in the variants in ASKB and AFAB. Now it is mandatory to have direct postings done for depreciation and APC postings. Therefore for document types which handle depreciation, the batch input session must be unchecked.
e. Posting indicators in depreciation area (Old assignments)
1. Post depreciation at periodic intervals to the general ledger.
2. Post asset values & depreciation at periodic intervals
3. Automatically post values online (real time)
Additional Assignments as New GL
4. Post APC directly + depreciation
5. Post APC only on periodic basis
6. Post APC only

Question: Can you specify the Configuration steps required for Fixed Assets Depreciation (Tax)?

Answer1:

Specify the depreciation area type - type of depreciation area – OADC
Define Depreciation keys –AFAMA,
Define Declining Balance Methods in – AFAMD (say for Tax Purpose)
Note: Calculation Methods are assigned to Depreciation key, and the Depreciation key is assigned to the Asset Master Record, Asset master is assigned to an Asset Class, which will govern how system will calculate Depreciation on that Asset.
Use transaction - OAAR to open Book 10 (tax book), to make changes. (See details in OSS note -646691.

Answer2:

Opening a New depreciation area in SAP in post-Production environment
- Assign Financial Statement Version to company code and deprecation area – OAYN
- Make Depreciation Key default available for change by Screen Layout – AO21
Drill into screen layout rule, and then check ‘Asset class’ to maintain at the asset class level
- Assign Tax book to Asset Classes – OAYZ
1. Activate the new depreciation area in the existing asset classes you have as need be. Uncheck the deactivate box and then enter any default depreciation terms and screen layout for the depreciation area in the asset class. These values are proposed when creating the asset and can be overwritten if need be. You must go into each asset class that you want the depreciation area activated in and uncheck the deactivated box. The default depreciation terms are not required.
2. Be sure to activate on the AUC asset class, so APC values can flow from investment measures (WBS or Internal Orders) to the fixed asset.
- Change name of Tax book (optional) – OADB
- Specify the depreciation area type - type of depreciation area - OADC
- Specify rules for value takeover - OABC
Determine how the depreciation area is to get their APC values. They get their values from another book (book X) (most of the time, it comes from book 01). Then determine if new book is to be identical to book X (with No Changes allowed).
Book X being the depreciation area the new book is taking the values from.
Specify depreciation area applicability for transactions
Menu path: Asset Accounting (Lean Implementation) - Depreciation Areas - Specify Allowed Depreciation Types for Depreciation Areas
1. Make Tax book applicable for all activities used by book 01
(Deselecting ‘Ident’ (for identical) here allows different depreciation schedules to book 10 vs. book 01)
- Set Transfer of Depreciation Terms - OABD
You do the same thing for the depreciation terms and the rules of takeover, and you also determine if you want the new book to be the identical to book x (with No changes allowed). Again, book X being the depreciation area new book is taking the values from. If you have more than one Tax book, it is advisable to have the second Tax book take over values from the first so that Tax only adjustments flow automatically to both books.
Create Tax Adjustment Transaction Type(s) for new book
- Copy 100 to Z transaction type - AO73
- Restrict to Book 10 - OAYA
- Determine if you want that depreciation area to calculate ordinary depreciation - OABN
- Same thing with Special Depreciation - OABS
- Determine order of ordinary and special depreciation calculation - AOBK
- Assign accounts for special depreciation if depreciation area will post and have any - AO94
- Determine Unplanned Depreciation - OABU
- Assign accounts for Unplanned Depreciation if necessary - AO95
- Post-Production: Activate on existing asset base - AFBN (program RAFABNEW)
Note: Once the depreciation area is configured to your specifications. You will then need to run a program in the environment. This program is the program that inserts the depreciation area into your existing assets that are already active in your system. It does not insert the depreciation area into assets that have already been deactivated (retired). The program can create the depreciation area with or without values depending on the setting you choose when you run the program, and according to the configuration settings made in OABC (as for what values it will take). You can also copy the depreciation keys from the existing depreciation area into the new depreciation area. If you need to open the new depreciation area on existing AUC assets, you will need to run an SAP-supplied alternate program. Create and run a Z program based on SAP note 317806. It is possible that the settlement from an existing WBS to the final fixed asset will not post to the new depreciation area unless this step is taken.

Bloger Comment:

Hi Syam,

Can you please post your comments in the Blog;
How we have answered  your questions, and to what extent we were able to respond to your questions. It is very much required for the bloggers.
We are spending our valuable time to consolidate our knowledge, and our work experience to help you out to continue in the Project or to get into projects by resolving your issues. We need your compliments for the resolved issues.
or
Ask us more detail solutions.
I will be more than happy to give more detail solutions if we can.
And please spread a word to your friends those who are looking for some answers to their SAP FICO related issues, we here to answer them to the best our knowledge and experience.
(We also got effected very badly with this Global Economic Crisis, but still we are trying to help to those who are in need - This inpsiration is from Mr. Pavan Challa - SAP FICO Consultant in USA who is also a team member of our Blog)

SAP ECC 6.0 - New New GL

Question:
Please give me brief explanation and configuration steps on ECC 6.0 new features:

1. New GL concepts and is there any methods that we can do this for new installations
2. Document Splitting and how many rules are there & what are those?
3. Segments and Segment Reporting
4. Parallel Valuation
5. Migration from Classic GL to New GL

Question: New GL concepts and is there any methods that we can do this for new installations
Answer:
a. Key Design Considerations - New in ECC 6.0:
1. The new GL can fulfill requirements for both legal and management reporting.
2. PCA functions are integrated in the new GL (except for transfer pricing).
3. Segment reporting for IAS and US GAAP is now possible.
4. Contains functional area dimension
5. Real-time integration with CO – no need for reconciliation ledger.
b. Additional dimensions are added in new GL:
- Check dimensions required for Consolidation (Legal and Management).
- Use parallel ledgers for multiple GAAP requirements. Use Lead Ledger for US GAAP.
-Use other ledgers for local GAAP requirements.
Note: The new GL allows you to perform parallel accounting i.e., multiple ledgers in parallel. During posting, you can have data posted to all ledgers, to a specified selection of ledgers or to a single ledger.
c. Functional Area in ECC 6.0
- Functional area is a structure used to classify operational expenses by function such as, administration, sales and distribution, marketing and production.
- Functional area can be defined in the GL Master (Chart of Accounts level), Cost Element or CO cost object. If Functional Area is defined in the GL master, the attribute is taken over to the Primary Cost Element Master, and Functional Area defined in Cost Element master takes precedence over Functional Area defined in Cost Object. (Note: Functional area derivation is determined from the real cost object- like Internal Order, Project, Cost Center, WBS, PA segment, whereas Profit Center is always a statistical object. Therefore, functional area is not derived from Profit Center.)
d. Asset Accounting in ECC 6.0
- Fixed Assets can have multiple depreciation areas to handle multiple GAAP requirements. e.g., Local GAAP vs. US GAAP.
Note: Specify the General Ledger that is posting to Asset Accounting (Define valuation areas for parallel valuation, and Delta valuation area to post valuation deference)
• Depreciation area 01 – Asset valuation area 01 (will always link to the Leading Ledger)
• Depreciation 02 and depreciation area 12 – Other asset valuation areas that can be tied to NLs as required.
- The program used for transaction ASKB has changed to RAPERB2000 and for AFAB, it is RAPOST2000
- Functional area assignment is mandatory
- Previously in 4.6C we use to give the batch ID in the variants in ASKB and AFAB. Now it is mandatory to have direct postings done for depreciation and APC postings. Therefore for document types which handle depreciation, the batch input session must be unchecked.
- Posting indicators in depreciation area (Old assignments)
1. Post depreciation at periodic intervals to the general ledger.
2. Post asset values & depreciation at periodic intervals
3. Automatically post values online (real time)
Additional Assignments as New GL
4. Post APC directly + depreciation
5. Post APC only on periodic basis
6. Post APC only
e. Cost of sales accounting in New GL
- We can activate Cost of Sales Accounting in New GL. Cost of sales accounting is a way to create a profit and loss statement (P&L) for a company by comparing the revenues to the costs or expenses incurred to obtain these revenues. The expenses are mainly divided by functional area such as: Manufacturing, Administration, Sales, and Research and Development
f. Configuration points for New GL:
1. All GL Accounts will need to be Profit Center relevant. Field Status Groups will need to be modified to make profit center required in all Balance sheet accounts.
2. Segments have to define based on the segment reporting requirements and assign them to appropriate profit center
3. Activated document splitting by profit center and each document will be balanced by profit center using a zero balance clearing account.
4. Business transaction variant is assigned to all custom document types.
5. All GL accounts are mapped to an item category.
6. Activated real time integration from CO to FI
7. Assign document splitting rule to business transactions
8. Create new clearing accounts - CO to FI clearing account, and Auto document split clearing account (document using document “YF”.)
9. Defined default profit centers by company code using FAGL3KEH transaction

Question: Document Splitting and how many rules are there & what are those?
Answer:

1. With document splitting, accounting line items are split according to specific characteristics. For example: Profit Center, Segment. This way, you can create financial statements for entities such as Segments and meet legal requirements.
Example: Vendor Invoice is for say $11000 (which includes 2 purchase amounts and taxes)
JE without Document split
Dr Raw Material – A $8000 (Profit Center A)
Dr Raw Material – B $2000 (Profit Center B)
Dr Tax $1000
Cr Vendor $11000
(Here we cannot identify the Tax and Vendor balance for each profit center, and hence this document is not balanced for Profit Centers)
So the document has to be balanced for the specific characteristic (in this example, Profit Center)
- The accounting lines for Vendor and Input Taxes are split according to the pre-defined criteria (Rule)
- The splitting-criteria for Vendor accounts is Purchase expenses (base line Item category) in 80:20 (Purchase proportion)
Cr Vendor A/C $8,800 PC-A
Dr Purchases A $8,000 PC-A
Dr Tax 800 PC-A

Cr Vendor A/C $2,200 PC-B
Dr Purchases B $2,000 PC-B
Dr Tax $200 PC-B
Now the entry got balanced for profit centers.
2. Document splitting can be done automatically, and also you can configure the rules for splitting. The splitting can be divided as - Active split, Passive split, and Clearing lines/zero balance formation by document.
a. Splitting rules for financial transactions
Splitting rules for Vendor Invoice
- Vendor and tax items are accounting items to be split
- Expense items are the base items
Splitting rules for Customer Invoice
- Customer items to be split
- Revenue items to be the base items
b. Splitting method
- The splitting method is the main key used to activate splitting in the new G/L
- It’s the main driver for document splitting
- It’s the list of all splitting rules for all business transactions
- Technically, it’s a collection of splitting rules, business transactions, and business transaction variants
SAP pre-delivered with Splitting Method 0000000001 (split of customer, vendor & tax)
- Document Type (KR)
- Business Transaction (Vendor Invoice 0300), and Business Transaction Variant (Standard variant 0001)
- Splitting Rules
Item Categories to Split (Vendor, Tax)
Base Item Categories (Expenses)
c. Item categories (Item categories are pre-defined in the system)
- Item category is the grouping of new G/L Accounts
- Instead of defining the splitting rules for all expense accounts individually, the item category groups all expense accounts together
- You could have one rule for all expenses
d. Business transaction/business transaction variant
- A business transaction is a general breakdown of an actual business process
Examples of business transactions: Vendor Invoice (0300), Customer Invoice (0200), Depreciation posting (0000), and Asset posting (0000) ect.
- A business transaction variant is a specific version of a business transaction provided by SAP
- There are various business transaction variants already defined in the system
- In Financial Accounting, various document types are linked to the business transactions and business transaction variants
e. Document Types
- To ensure that every relevant financial transaction is considered for document splitting, categorize the document types according to specific business transaction variants
- Assign business transaction and business transaction variants for the document types
- Standard SAP document types are already defined with appropriate values
- All custom documents will start with ‘Z’

Question: Segments and Segment Reporting
Answer:
IAS accounting standards define the statutory requirements for segment reporting. New GL has document splitting functionality that enables segment reporting. Standard Segment Reporting functionality is not available in Classic GL.
- Segments are used for Used for segment reporting.
- Segment (account assignment object) derived from the master data of Profit center, and also segment can be updated from BADI’s (FAGL_DERIVE_SEGMENT).
To post, analyze and display document segment in the new GL, the following steps are required.
- Define the segments in configuration.
- Derive the segments-SAP supports derivation of segment from profit centre master data.
- Maintain the field status variant of the required FI accounts.
- Assign the required scenario to relevant ledgers.

Question: Parallel Valuation
Answer:
Parallel Valuation is used for Parallel Accounting purpose. Different accounting principle applied to different ledgers.
- Can maintain different sets of books to satisfy all different requirements of Financial Statement users accurately, efficiently and effectively. Standard reports are already available and readily available to use.
- A leading ledger is created in the system (0L – ledger = GAAP). Then another ledger should be created and classified as non-leading ledger (1L – ledger = TAX).
- Financial transactions in the system are posted to both ledgers if no ledger is specified in the transaction. If you generate a financial statement or GL account report, both ledgers contain the data of the transaction posted.
- To post only to specific ledger (e.g. 0L – ledger), the Ledger Group field in the header should be filled-up with 0L – ledger. The transaction won’t affect the other ledger (1L – ledger).

Question: Migration from Classic GL to New GL
Answer:
1. New customers use Legacy data transfer to transfer from the legacy to the SAP system with New GL active. The Existing Customers transfer the data from classic ledger to New GL
2. The following are to be considered while doing data transfer to New GL.
a. Which characteristics/entities are to be reported?
b. Whether you want to use PCA or Segment, or both,
c. How you want to derive account assignments,
d. Do you want to use Functional area, preparation for consolidation, analyze CC, and use additional ledgers aside leading ledger, and whether to use existing account-based solution or migrate to Ledger – solution.
3. Based on the above the Configuration steps will be framed.
4. Migration plan: a. Define migration date (current or next fiscal year),
b. Define Company codes to be transferred,
c. Execute the necessary activities in sequence,
d. Start the migration program,
e. Monitor the migration activities in status management.
-merely the balances are transferred (before the migration date), no individual documents are transferred. (Use RFAGL_UPLOAD_CARRY_FORWARD program)
-Open items of the previous years are created based on the items themselves (with or without split info.)
-Current year postings (till the date of migration)-documents are transferred with splitting info. (Use RGURECGLFLEX program)- do the tests run before uploading.
-Migration time line
Phase’0’: single documents are not transferred, only cumulative balances are transferred.
Phase’1’: Documents from phase 1 can be followed up at activation time. Any document split will be posted.
Phase’2’: The new GL is active and use the configuration functions
5. Convert/migrate production data into new GL using SAP migration cockpit
- Load New GL migration cockpit in Development
- Create migration plan for each fiscal year variant and execute steps mentioned in the cockpit.
6. Migration Activities
• Close Posting Periods in the prior Fiscal Year
• Create Work-list/Activate migration plan
• Create Work-list (FAGL_MIG_OPITEMS_FILL) and (FAGL_MIG_RPITEMS_FILL) as background jobs.
• Create work-lists individually/Create work-list for open items.
• Create work-lists individually/Create work-list for documents.
• Enrich the open items with account assignment information
• Transfer open items from previously created work-list
• Build documents splitting information
• Subsequently post documents for current fiscal year from work-list.
• Create GL Line items and balance carry forward for all GL accounts not managed on an open item basis.
• Display log for balance carry forward.
• Reset balance carry forward.
• Repost balance carry forward manually.

Electronic Bank Statement

Question:
I need your help in my project'Automatic Bank Reconciliation' , I'm forwarding the electronic bank scenario(find below). I know the manual process but not the automated one.I'm new to this format. How to upload the MT940 format to SAP system and reconcile it with bank book..Could you forward me the customization procedure also?

Answer: Correct me if I am wrong

A. Electronic Bank reconciliation Process – (FF_5)


Import the bank statements (in MT940 format) received from banks

After the uploading of this statement, the process creates postings in the main bank account. The accounting entries are passed as mentioned below.

Dr Main Bank A/c
Cr Incoming Payment A/c

Dr Outgoing Payment A/c
Dr Main Bank A/c
The un-reconciled items will remain as open items in “un reconciled account” which can be reconciled manually. (As the Accounts are in open item management)

Reprocess Un-reconciled items – FEBAN

• Through this session we can clear the un-posted or un-reconciled items from the above mentioned process.

• The session enables us to select any of the bank statements created by us based on statement date and identification key.

• We can correct the selected items one after another. At the end, post again for all changed items.

B. Customization of Electronic Bank Statement

Manu Path: IMGFinancial AccountingBank AccountingBusiness TransactionsPayment TransactionsElectronic Bank Statement

a. Create Account Symbols
b. Assign Accounts to Account Symbols
c. Create keys for posting rules
d. Define posting rules
e. Create Transaction types
f. Assign Bank Accounts to transaction types

(Note: Separate accounts for Bank Charges (Discount or Collection), and Interest are to be maintained, rules (Keys, account symbols) are to be defined for auto posting to these accounts)

More details on above configuration:

• Bank accounts are assigned to transaction types. Transaction types represent the type of bank statements which company receives. For example, a country has one bank account for payment with Chase bank and one bank account for payment with American Bank. These two bank accounts will be assigned to two different transaction types, as the information provided on the bank statements of both banks will be different.

• External transactions are assigned to transaction types. External transactions are abbreviations on bank statements which indicate the type of transaction (e.g. bank transfer, cheque deposit) from the bank’s perspective.

• Posting rules are assigned to external transactions. Posting rules determine the posting keys and document types used in posting the bank statement. For example, if the external transaction is incoming payment, the posting rule will specify that the incoming payment bank GL account should be posted with posting key 40 and the incoming bank clearing account should be posted with posting key 50. Posting rules also determine if the bank clearing accounts are cleared at the time of bank statement posting. In addition, posting rules determine which GL accounts get posted via account symbols.

• Account symbols are assigned to GL accounts. For the same account symbol, different GL accounts can be assigned for posting using different currencies.

• Additional configuration will be required for each new country due to different bank accounts and bank statement contents.

Data Migration and Cut-over Activities

Question: Explain about Data Migration and Cut-over Activities in SAP

Answer:

A. Data Migration:


Data migration involves transferring the legacy data into SAP system

Those who are implementing SAP solutions, legacy data is exported into a spreadsheet format, and the LSMW generates the input file to load the data into SAP.

The Legacy System Migration Workbench (LSMW) is a tool recommended by SAP that you can use to transfer data from legacy systems into an R/3 System.

The LSM Workbench carries out the following tasks:

- Reads the transfer data from one or more files (for example, spreadsheets, sequential files etc.)

- Converts the data from the source format into the target format



B. Cut-over Activities

Cutover Activities are Master/Transaction Data uploading strategies depending upon the when we are going live. As per that, you have to give the information to your core team. If you going live at the middle you have to upload the all P&L Account items and B/S Items. If you going live at the financial year start, you have to only upload the B/S Items.

Pre-Go live Activities:

a. Master Data uploads into production system

1. G/L Master Upload thru BDC or LSMW (FS00 & FS01)

2. Vendor Master Upload thru BDC or LSMW (Will be Taken Care by MM)

3. Customer Master Upload thru BDC or LSMW (Will be Taken Care by SD)

4. Asset Master Upload (AS90)

5. Cost Element Master Upload

6. Cost Center Master Upload

7. Profit Center Master Upload

b. Transaction data upload

1. G/L Balances (F-02)

2. Vendor Balances (F-43)

3. Customer Balances (F-22)

4. Customer Advances (F-29)

5. Vendor Advances (F-48) - Before uploading Vendor Balances you have to take care of TDS Information.

6. Asset value uploads (AS91).

c. Controlling area related upload

1. Upload Cost center plan

2. Execute the allocation cycles within cost center accounting

3. Update planned activity

4. Calculate Activity prices

5. Execute product costing run.

d. Other Pre-Go live activities

1. Ensure all the customizing request is in the production system

2. Ensure all the number ranges for all the modules have been maintained in the production system

3. Ensure that Operating concern has been generated

4. Ensure all material masters (all material types) have been loaded

5. Upload Open purchase orders

6. Stock upload

7. Mark and Release the cost estimates.

year-end close

Question: On year-end close


While working on year-end close

I am encountering a problem while doing ABST2 .I am founding differences for 13 accounts .I am providing the message while executing the ABST2 which found below:

Differences between assets and G/L accts in the balance carried forward

Message no. MQ 555

Diagnosis

Differences occurred in the balance carried forward when comparing asset summary records and G/L accounts.

Procedure

Using program RFEWSBAL, select the accounts for which differences occurred. To do this, proceed as follows:

1. Changeover package: Active package

Phase: ANALYZE

Origin of change: AS

Proceed

1. Analyze the accounts containing errors using note 104567.

If the document number field contains the entry "W004", this means that although a difference exists in the balance carried forward, this difference was charged off at the key date. Following local currency changeover, the system adjusts the currency differences at the key date only, but not in the balance carried forward.

Answer: Please correct me if I am wrong

Differences between FA and GL will happen when someone posts manually into the GL accounts. Check for those manual entries, if you find any entries, reverse those postings, and then check whether the assets and GL are balanced.

Asset Accounting - Asset Acquisition

Interview Question – On Asset Acquisition


1. Company has purchased a ABC company and the assets are to be transferred from ABC company. So what are the steps to be taken care of .
2. For ex Asset Z has a net book value of $ 950.00 as on 02/01/2010 ( in old company). How do you show the balance in new company and what are the journal entries to be passed in new company. What are the tasks to be fulfilled?
What is the solution for this?



Answer – Please correct me if I am wrong

A. If Selling and Buying Companies are separate Entities:
(Ex: APC Value: $6000, complete retirement or sale value: $4000, Accumulated Depreciation: $700)
Accounting Entries
In Selling Company:
A/R Posting:
Customer a/c Dr (for the sale value) $4000
Revenue –Asset Retirement Cr $4000
Asset Posting:
Clearing of Asset Retirement Dr $4000
P&L (Loss) Dr $1300
Accumulated Depreciation Dr $700
Asset Cr $6000
In Buying Company:
Asset Dr $4000
Vendor Cr $4000
Note:

• Posting date of the document will be copied into the asset master as the capitalization date.

• The depreciation start date of each depreciation area will also be determined and updated in the depreciation area data tab page.

• Asset acquisition posting could also be done without PO from the MM module.

• Posting could be done in FI posting only.

B. If selling and buying Companies are Inter Companies
Accounting Entries
In Selling Company:
A/R Posting
Inter Company Customer a/c Dr (for the sale value) $4000
Revenue –Asset Retirement Cr $4000
Asset Posting
Clearing of Asset Retirement Dr $4000
P&L (Loss) Dr $1300
Accumulated Depreciation Dr $700
Asset Cr $6000
In Buying Company:
Asset Dr $4000
Inter Company Vendor Cr $4000
1. Note:

• Posting date of the document will be copied into the asset master as the capitalization date.

• The depreciation start date of each depreciation area will also be determined and updated in the depreciation area data tab page.

• Asset acquisition posting could also be done without PO from the MM module.

• Posting could be done in FI posting only.

2. Note:

The process for posting intercompany transactions is as follows:

• The initial entry is parked.

• Then an email is sent to the other branch to view the document.

• On approval of the transaction, the parked document is then posted to the g/l in both companies. The company receiving the revenue will be the one responsible to book into system using the US dollar as base currency.

Procure to Pay Business Process Steps

A. Procure to Pay Business Process Steps
1. Create Purchase Requisition - ME51 (Fields: Material/Plant/Quantity/Storage Location)
2. Create Purchase Order - ME21N. (Purchasing org/ Purchasing group/ Company Code/ Payment Terms/ Vendor/ Currency /Material/ Quantity/ Plant/ Inco terms/ Net Price/ Tax code/ Storage Location)
3. Goods receipt Purchase order – MIGO (Enter PO No:/ Goods receipt Purchase order - screen will display/save/ Material document posted will display)
4. Enter Invoice – MIRO (Company Code/ Invoice date/ Reference-PO/ Amount/ Baseline Dt.)
5. Evaluated Receipt Settlement (ERS) with Logistics Invoice Verification – MRRL (Company code/ Plant/ Goods receipt document/ Fiscal year, goods receipt/Vendor/ Purchasing Document)
6. Automatic Clearing without Definition of Clearing Currency – F.13 (Company code/ Fiscal year/ Document number/ Posting date/ Check Select vendors)
7. Automatic Clearing with Definition of Clearing Currency - F13E (same as above)
8. Clear G/L Account – F-03 (Account/ Company code/ Currency/ Select the required document- enter Pstky, Account, Amount, Profit center)
9. Automatic Payment - F110 (parameter tab - Posting date/ Document date/ Company code/ Payment method/ next payment date/ Vendor)

B. Payment Program – FBZP
1. Set up all Company Codes for payment transaction- OBVU
(Specify paying CC, Cash discount and tolerance, Special G/L transactions to be settled)
2. Setup Paying Company Code for payment transaction – OBVU
(Min/Max amt. for out/in payments, Forms advice notes and EDI,)
3. Setup payment method per country for payment transaction - OBVCU
(For each country –Check/Bank transfer/ACH/, master record –Bank/collection auth., posting specifications-Doc. Type, Procedure for print form, allowed Currencies)
4. Set up Payment Methods per Company Code for Payment Transactions – OBVU
(Method ©,Min/Max amount limits, Grouping (single payment for marked items),Foreign payment/currency/customer allowed, Bank selection (optimization of payment, specification for Payment Advice)
5. Set Up Bank Determination for Payment Transactions – OBVCU
Select the Paying CC and specify the following
(Bank selection – Ranking order (Payment Method& House Bank), Bank Accounts (HB/Method/Bank ID/Bank GL a/c/ Bank clearing GL a/c), Available amounts (HB/Bank ID/days/Currency/ Available out/In coming amounts), Value Date (Per each Method select (HB/Bank ID/amount limit/Currency/days to value date) - Value date is the date on which Bank carry out debit or credit to the account.

C. Running Payment Program- F110
a. Enter parameters (Posting date, Company code, Pmt Method, Next p/date, Vendor (Vendor open items)
b. In Additional log tab (Select Due date check, select Payment method selection in all cases, select Line items of the payment documents, and Vendors)
c. Free Selection tab of the payment parameters screen: allow you to enter a field name and value and to use this field as included or excluded selection criteria.- Unneeded vendor open items are blocked)
- Schedule/Start payment proposal,
- Run the Proposal (Select Start immediately and Create payment medium)
- Checks are printed, and FI payment clearing document created.(Dr-Vendor/Vendor down payment, Cr-Bank/Cash Discount)
- To view a report (FCHN- to display a check register, SP01- to display spool requests)
- Check: Payment proposal log, Proposal list,
Exception list (Exception list contains those invoices which are due for payment but are stuck in the system due to some issues). The reason for the exception is represented by an error number.
Blocked items/Special G/L transactions /Items that could not be settled despite being due.

D. EDI Settings for Payment program (For outbound IDOC trigger)
Payment program (F110) generates IDOCs. This is the case usually when the customer must send their payment files to one of their banks via an EDI link - steps to set EDI setting.
1. FBZP – A. define a Payment Method that allows EDI (table T042Z). This payment
Method must be using program RFFOEDI1.
B. Define the customer’s House Bank that will be used for the payments and assign an EDI
Partner number to it.
2. FI12 - look under EDI Partner Profiles
A. Create a Partner Profile of Partner Type "B" (Bank)
(Note: some banks require a specific name or number for the EDI Partner nr. If that is the case, the Bank should let you know and you will need to update the Partner Nr. accordingly).
3. WE20 – A. assign the following Message Types (or only those that you need) to the Partner Profile.
EUPEXR/PAYEXT/ISU_REMADV/CREADV/DEBADV/DIRDEB/PAYEXT/REMADV
B. Check the Receiver Port if necessary. A Basis consultant should help you in this step.
C. Check that the EDI Payment Method you defined is assigned to the relevant House Bank.
4. SA38 - define a Variant for the IDOC generation program RFFOEDI1
- Select: Paying/Sending Company Codes
- EDI-relevant payment method(s)
- House bank(s)
- In the “Print Control”, select "Generate SAP IDOC"
5. FI02- Check that the Bank Nr. and the SWIFT Code is maintained for the relevant House Bank.
6. On your Vendor master data, check the EDI-relevant payment method and the bank Data are maintained.
7. You are now ready for testing: Run the Payment program (F110), once the payments are posted correctly, click on the "Printout/Data Medium" tab to execute the program RFFOEDI1 and generate the payment IDOCs. View the IDOC numbers by clicking on Additional Log.
You can also use T Code WE02 to display the IDOCs.

E. Scenarios - Payment Program: (Which we can refer in the Interview)

1. We are facing a problem in running a automatic payment program. Suppose I have a balance of Rs 100000 in my bank account and today I am running an Automatic payment run. Total payment of the run is Rs 150000. So when I run Automatic payment run it is not giving any error message. What to do with this problem.
Ans. The Automatic Payment Program does not check the Balance of your Bank Account. (GL A/c. Balance.) What it does check is the min & max amounts that you have maintained in your customization. In Bank determination (FBZP), you have to fill in the available amounts for each Bank. This is the maximum amount up to which payments will be generated by the Auto. Pay. Run.
So if you want to ensure that on any single day the payment run does not pay more than bank balance, you have to update on a daily basis available balance to match with your bank balance.

2. I am creating a new company code 'A', in which the paying company code will be 'B' and the sending company code will be 'A'. Now I have to configure for both manual and automated payments. For cross-company payments what do I have to do different in the configuration settings?

Ans: In Customizing Maintain Payment Program : Transaction code FBZP
a) define your company code' A" & "B" both in section tab (All Company code)
b) Define Paying company Code for example "A" paying company
c) Payment Method in country in tab: Country IN (India) - Name of Country - Payment Method "C" is for Check "D" for Demand Draft etc
d) Payment Method in Company code - for example "A" is paying company define payment method in same section
e) In Bank Determination Section - define Ranking Order, Bank Accounts, Available Amount, Value Date, Expenses/ Charges .

3. We have a vendor with payment terms 50% advance and 50% on delivery. Let’s say we made a contract for 100,000 USD. Now as per the terms, we paid him 50,000 USD advance. Now after some time, he provides services for 20,000 USD and raises the invoice for the same. Now as per the terms we have to pay him 50% of 20000 since 50% is already paid in advance. Now when i do the GRN and ERS/MIRO and run the auto payment program, the system proposes entire amount of 20,000 as due for payment. Is there any way where we can configure the system in such a way that it should propose only 10,000 as due for payment. I can do the manual adjustment before doing F110 but just want to know if there is any other way out without the manual interference.

Ans: Attach the payment terms to the vendor which is created under hold and retain option. This will create multiple lines as per payment terms and will pick up only the line item which is due for payment.

4. How to make the Down payment through automatic payment program, through F-110. what are the prerequisites?
Ans. For Down payments to be paid using APP. we have to create a Down Payment request F-47.