SAP New Ledger Configuration


Steps for Activating the New Ledger and Defining Ledgers

Defining Currency Of Leading Ledgers and defining Segment

Defining Document Splitting Char. For GL Accounting

Steps for Activating Document Splitting

Specifying Account Assignment Types For Objects

Defining Account Determination For Real Time Integration

Defining Document Splitting Characteristics For Controlling

Defining Post Capitalization Of Cash Discounts For Assets

Defining and Assigning Variants For Real Time Integration to Company Codes

Classifying G/L Accounts For Document Splitting

Defining Valuation Area and Valuation Methods

Assigning Scenarios And Customer Field To Ledgers

Defining and Assigning Accounting Principles to Ledger Groups

Steps for Carrying Forward Balances of Prior Years

Transfering Documents To New General Ledger Accounting

Defining And Assigning Migration Plan

Executing Migration Cockpit

Complete Month end and Year End Closing Procedures and much more

SAP FI GL

Company code configuration which includes creating chart of accounts,creating posting period variant, defining retained earnings account,creating document types. Define tolerance groups for employees

Configuration for Maximum exchange rate differences

Configuring parallel currencies

Configuration for automatic clearing

Configuration for foreign currency valuation

Configuration for regrouping of GR/IR clearing

Creating financial statement version i.e. defining balance sheet and profit and loss account

Integration - SAP FI- MM automatic account assignment, FI- SD automatic account assignment

4.5 - Quality Management

4.5 - Quality Management

Planning
Execution
Inspections
Certificates

4.4 - Production Planning

4.4 - Production Planning

Capacity planning
Master production scheduling
Material requirements planning
Shop floor

4.3 - Material Management

4.3 - Material Management

Requisitions
Purchase orders
Vendor Selection
Goods receipts
Accounts payable
Inventory management
Master raw materials, finished goods etc

4.2 - Sales & Distribution

4.2 - Sales & Distribution

Sales orders
Pricing
Picking (and other warehouse processes)
Packing and Invoicing
Shipping
Collection

4.1 - Finance and Controlling

4.1 - Finance and Controlling

Finance
General ledger
Accounts receivable
Accounts payable
Asset Accounting
Withholding Tax

Controlling
Cost elements
Cost centre
Profit centre
Internal orders
Product costing

4. Functionality of each Module

4. Functionality of each Module

Finance and Controlling
Sales & Distribution
Material Management
Production Planning
Quality Management
Human Resources

SAP R/3 Modules
Technical Modules
ABAP
BASIS
NETWEAVER
Exchange Information (Xi)

Functional Modules
Finance and Controlling
Sales And Distribution
Materials Management
Production Planning
Plant Maintenance
Project System
Human Resources
Quality Management

Cross-Applications
Advanced Planner and Optimizer
Supply Chain Management
Customer Relationship Management
Supplier Relationship Management
Product Life Cycle Management
Business warehousing

1. Distinct modules of SAP R/3

1. Distinct modules of SAP R/3

SAP R/3 is arranged into distinct modules like :
Technical Modules
Functional Modules
Cross Applications
based on their functionality

Introduction to SAP Modules

Introduction to SAP Modules

Contents
1. Distinct modules of SAP R/3
2. SAP R/3 Modules
3. SAP R/3 Application Modules
4. Functionality of each module
4.1 – Finance and Controlling
4.2 – Sales and Distribution
4.3 – Material Management
4.4 – Production Planning
4.5 – Quality Management
4.6 – Human Resources

5. ASAP Methodology

5. ASAP Methodology

1. Project Preparation, in which the project team is identified and mobilized, the project standards are defined, and the project work environment is set up;

2. Blueprint, in which the business processes are defined and the business blueprint document is designed;

3. Realization, in which the system is configured, knowledge transfer occurs, extensive unit testing is completed, and data mappings and data requirements for migration are defined;

4. Final Preparation, in which final integration testing, stress testing, and conversion testing are conducted, and all end users are trained; and

5. Go-Live and Support, in which the data is migrated from the legacy systems, the new system is activated, and postimplementation support is provided.

4. Different Modules in SAP

4. Different Modules in SAP

Functional Modules
FICO – Finance & Control
PP – Production Planning
MM – Material Management
SD – Sales & Distribution
HR – Human Resources
Technical Modules
ABAP – Advanced business applications programming
XI - Exchange Infrastructure
Net viewer
Basis
BIW – Business Information Warehousing

3. SAP – Leading Software in next few years

3. SAP – Leading Software in next few years


1. J2EE
2. .Net
3. C#
4. Project Management
5. Oracle 8 and 9i
6. SAP
7. Business Analysis
8. VB.net
9. NT Novell
10.Java

2. SAP History

2. SAP History

The 1970s: A Real-Time Vision

In 1972, five former IBM employees launch a company called Systems, Applications, and
Products in Data Processing in Mannheim, Germany. One year later, the first financial
accounting software is complete, forming the basis for the continuous development of other
software components in what later came to be known as the "R/1 system.

The 1980s: Rapid Growth
The SAP R/2 system attains the high level of stability of the previous generation of
programs.

The 1990s: A New Approach to Software and Solutions
SAP R/3 is unleashed on the market. By 1996, the company has earned 1,089 new SAP R/3
customers. At the end of the year, SAP R/3 has been installed in more than 9,000 systems
worldwide.

The 2000s: Innovation for the New Millennium
With the Internet, the user becomes the focus of software applications. Currently, more than
12 million users work each day with SAP solutions. There are now 121,000 installations
worldwide, more than 1,500 SAP partners, over 25 industry-specific business solutions, and
more than 41,200 customers in 120 countries. SAP is the world's third-largest independent
software vendor.

1. What is SAP

1. What is SAP

S – Systems A – Applications P – Products

SAP, started in 1972 by five former IBM employees in Mannheim, Germany, states that it is the world's largest inter-enterprise software company and the world's fourth-largest independent
software supplier, overall.

SAP have a very high level of integration among its individual applications which guarantee consistency of data throughout the system and the company itself.

Introduction to SAP

Introduction to SAP

1. What is SAP
2. SAP History
3. SAP – Leading Software in next few years
4. Different Modules in SAP
5. ASAP Methodology
6. SAP Landscape
7. What is SAP R/3
8. Business Process and SAP R/3 functionality

Causes of ERP failure

Causes of ERP failure

ERP Software
Business process that ERP software supports
Users of ERP system
Hardware and operating system that run ERP applications

Successful factors of ERP implementation

Successful factors of ERP implementation

Project planning
Architectural design
Data requirements
Phased approach
Data Conversion
Organization commitments

ERP Implementation methods

ERP Implementation methods

The Big Bang
The installation of ERP systems of all modules happens across the entire organization at once. The big bang approach promised to reduce the integration cost in the condition of thorough and careful execution

Modular Implementation
The method of modular implementation goes after one ERP module at a time. This limits the scope of implementation usually to one functional department. This approach suits companies that do not share many common processes across departments or business units.

Process oriented Implementation
The process-oriented implementation focuses on the support of one or a few critical business processes which involves a few business units.

ERP Disadvantage

ERP benifits

ERP Vendors

History and Evolution of ERP

History and Evolution of ERP

History:
ERP (Enterprise Resource Planning) is the evolution of Manufacturing Requirements Planning (MRP) II. From business perspective, ERP has expanded from coordination of manufacturing processes to the integration of enterprise-wide backend processes.

From technological aspect, ERP has evolved from legacy implementation to more flexible tiered client-server architecture.

Evolution :

What is ERP and Definition

What is ERP and Definition ?


E – Enterprise R – Resource P - Planning

Definition:
An integrated information system that serves all departments within an enterprise

ERP is a way to integrate the data and processes of an organization into one single system Software solution that addresses the enterprise needs taking the process view of an organizational goals tightly integrating all functions of an enterprise

SAP T Codes ( Financial Accounting)

Here are some T-Codes for Financial Accounting used in SAP

T Codes Details
Financial Accounting
SPRO Enter IMG
OX02 Company Code - Create, Check, Delete
OX03 Create Business Area
OKBD Functional Areas
OB45 Create Credit Control Area
OB29 Maintain Fiscal Year Variant
OB37 Assign Co. Code to Fiscal Year Variant
OB13 Creation of Chart of Account (CoA)
OBY7 Copy Chart of Account (CoA)
OBY9 Transport Chart of Account
OBD4 Define Account Group
OBY2 Copy GL Accounts from the Chart to Co. Code
OB53 Define Retained Earnings
OB58 Maintain Financial Statement Versions
OBC4 Maintain Field Status Variant
OBBO Define Posting Period Variant
OBA7 Define Document Type & Number Ranges
OB41 Maintain Posting Keys
OBA4 Create Tolerance Groups
FBN1 Create GL Number Ranges
OBL1 Automatic Posting Documentation
FBKP Automatic Account Assignment
OBYC MM Automatic Account Assignment
OBY6 Enter Global Parameters
FS00 Creation of GL Master Records
(F-02) Posting of GL Transactions
(FB03) Display of GL Document
(FS10N) Display of GL Accounts
OB46 Define Interest Calculation Types
OBD3 Define Vendor Account Group
(XK01) Creation of Vendor Master
(F-43) Purchase Invoice Posting
(FK10N) Display Vendor Account
F112 Define House Bank
OBB8 Maintain Terms of Payment (ToP)
OBD2 Creation of Customer Account Group
OBA3 Customer Tolerance Groups
(XD01) Creation of Customer Master
(FD10N) Display Customer Account
(F-28) Incoming Payment Posting
OB61 Define Dunning Area
EC08 Copy Reference Chart of Depreciation (CoD)
OADB Define Depreciation Area
OAOB Assign Chart of Depreciation to Co. Code
OAOA Define Asset Class
AO90 Assignment of Account in Asset Class
OAY2 Determination of Depreciation Area in Asset Class
(AS01) Creation of Asset Master
(AS11) Creation of Sub Asset
(F-90) Asset Purchase Posting
(AFAB) Depreciation Run
(F-92) Asset Sale Posting
(AW01N) Asset Explorer

SAP R/3 Installation

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The SAP interested people are very much courious about the SAP contents.
So let us understand the contents of SAP FI/CO Configuration Material.

SAP FI GL

• Company code configuration which includes creating chart of accounts,
• Creating posting period variant, defining retained earnings account,
• Creating document types. Define tolerance groups for employees
• Configuration for Maximum exchange rate differences
• Configuring parallel currencies
• Configuration for automatic clearing
• Configuration for foreign currency valuation
• Configuration for regrouping of GR/IR clearing
• Creating financial statement version i.e. defining balance sheet and profit and loss account
• Integration - FI- MM automatic account assignment, FI- SD automatic account assignment
SAP AR & AP & Bank accounting
• Configuring account groups for Customers and Vendors, defining screen layout per activity for customers and vendors
• Deleting customer data
• Configuring payment terms
• Automatic account assignment for various AR & AP transactions like bank charges, overpayments/underpayments, exchange rate difference, rounding differences
• Configuring payment block reasons
• Configuring automatic payment program
• Includes House bank configuration
• Configuring the manual bank reconciliation and the electronic bank reconciliation
• Configuration for dunning
• Configuration for special G/L transactions like down payment made, down payment received
• Configuration for regrouping according to maturity
SAP Asset Accounting
• Creating/Copying Depreciation Areas- Assignment to company Code,
• Input Tax Indicator Configuration , Screen Layout Rules
• Specify Account Determination Rules - Define Asset Classes, Number Ranges,
• Critical Check Boxes Notification
• Integration of Asset Accounting with General Ledger, Defining Posting Rules to Cost Center, Specify Financial Statement Versions for Asset Accounting
• Complex Depreciation Calculation Procedures- Setting up of Depreciation Areas, depreciation key, Define Cut off Value key
• Defining the crucial Base Methods, Declining Balance Methods, Multilevel Methods, Maintaining Period Controls
• Pre Production Go Live Activities and Their Configuration
SAP Cost Center Accounting
• Maintaining controlling area settings, which includes defining modules which are active i.e. profit center, profitability analysis, internal orders. Assigning company code to controlling area.
• Multiple valuation approaches/transfer prices - maintaining currency and valuation profile assigning it to controlling area, creating actual versions for parallel valuations
• Cost element accounting - creation of various types of cost elements
• Settings for Reconciliation Ledger which includes defining adjustments accounts for reconciliation postings
• Creating cost center hierarchy, cost center, cost center groups, activity types, statistical key figures
• Creating planning layouts for cost center planning
• Configuring various allocation cycles - Distribution, assessment, indirect activity allocation. Configuring the splitting structure
• Configuring automatic account assignment table.
SAP Product Costing & Material Ledger Configuration (Sells separately for $249)
• Product Cost Planning- Detailed configuration of overhead keys, costing sheets, overhead groups and Complete Cost Component Structure
• Material Cost Estimates - In depth configuration and analysis of the Costing Variants including Valuation variant, Transfer Strategy and Costing Types
• Special Features of Cross Company Costing
• Complete Cost Object Controlling Configuration across various industries including Repetitive Manufacturing
• Complete Integration with Production Planning on Default Order types, parameter checks
• Work in Progress Configuration- Calculation of Results Analysis keys, Valuation Method and Assignments.
• Detailed Variance Calculation configuration and setting up of Variance keys
• Setting up the Settlement Profile, Allocation and Source Structure including the complex PA Transfer Structure
• Detailed configuration for Sales Order Costing - Make To Order (An absolute steal)
• Detailed configuration for Make to Stock ( An absolute steal)
• Detailed configuration of Material Ledger ( A real value add)
SAP Profit Center
• Maintaining profit center settings, creating dummy profit center, making settings for actual flow of data.
• Maintaining profit center hierarchy, creating profit center
• Maintaining settings for transfer prices
• Maintaining planning layout for profit center planning
• Configuring allocation cycles - Distribution, assessment
• Maintaining automatic account assignment of revenue elements
• Maintaining the additional balance sheet and profit and loss accounts (3KEH)
SAP Profitability Analysis (Sells separately for $199)
• Configuring the operating concern which includes maintain characteristics, maintain value fields. Copying customizing from an existing operating concern
• Maintaining user defined characteristics, maintaining characteristics hierarchy
• Define Characteristics derivation
• Configuring valuation strategies. Valuation using standard cost estimate
• Configuring condition tables and costing sheets
• Manual planning, automatic planning, integrated planning
• Configuring the value flow from SD to COPA, configuring the value flow from FI, MM to COPA
• Configuring assessment cycle for value flow from CO to COPA
• Configuring settlement of production variances to COPA
• Configuring Profitability reports for COPA












DUNNING
Dunning is a Germany word which means a “ remainder to the party”.

Some times your business partner may fall behind payments. Then you can send them a payment remainder or a dunning notice to remind them about their outstanding debts

You can use the dunning program to dun both the customers and vendors

It may be necessary to dun the vendors if they has a debit balance as result of credit memo

If a customer is also a vendor we can off set the account balances against one another

Dunning program selects the overdue open items, determines the dunning level of the account and creates a dunning notice

The SAP system allows you to use either the automatic dunning program, which duns all overdue items in accordance with your selection criteria or if received you can dun individual customers or vendors

There are some attributes to control the dunning program and these attributes are configured according to the needs of the company

Attributes are :

Dunning procedure
Dunning level
Dunning areas

Dunning procedure:

A predefine procedure specifying how customers or vendors are dunned. For each procedure, the user defines

Dunning frequency
Text for the dunning notice
Number of dunning levels

Dunning level :

SAP has given totally 9 levels. The number of levels we use is depend upon the client requirement

Dunning areas:

Dunning area represents an organizational entity that is responsible for dunning.

Configuration

Define dunning area(OB61)

Define dunning procedure (FBMP)

Assign dunning procedure in customer master (XD02)

Sales posting(F-22)

Dunning(F150)

Define dunning area(OB61)

Here you define dunning area (dunning area is optional)

Define dunning procedure (FBMP)

In this activity you enter the settings that control the dunning program

setting dunning procedure which determines the dunning interval, grace periods and number of dunning levels
setting the dunning charges
Setting the dunning notice
Assign dunning procedure in customer master (XD02)

Here we need to assign the dunning procedure to the party for whom we want to run dunning.

Dunning(F150)

Run date and identification.
Parameters(dun date,doc posted upto,customer,cocod)
Schedule the dunning run (start immediately)
Schedule dunning notice printout (output device name)
Dunning history(account type, co code)
Display dunning notice (Print preview)

Run date:
It is the date on which the program is to carried out as planned. It is also possible to run the program at earlier or later date

Identification:
This is used to distinguish between several runs with the same reconciliation date

Dunning date :
Dunning date has two functions
It is the issue date of the dunning notice
It is also basis for calculating the days in arrears

Documents posted up to:
Only items which have been posted up to this date r included in the processing

INTEREST CALUCULATION

Interest can be calculated on General ledger account, vendor and customer in two ways

Account balance interest calculation (S type)
Item interest calculation (P type)

Interest indicator is a key for allocation of interest terms for respective accounts.
We will assign an interest indicator to the master records of the customer, vendor and general ledger accounts for which we want to calculate the interest.
Interest calculation is controlled by the settings made in the interest indicator
Interest is calculated using debit interest rate defined for the interest indicator.
Credit interest are used when interest is being calculated on items paid prior to due date.

Interest calculation process

Identification of items on which the interest is to be calculated
Number of days for which the interest is to be calculated
Converting into local currency
Correspondence

Configuration

Define interest calculation type(OB46)
Prepare account balance interest calculations (OBAA)
Define reference interest rates (OBAC)
Define time dependent terms(OB81)
Enter interest rates(OB83)
Creation of GL accounts(FS00)
Assignment of accounts for automatic postings(OBV2)
Postings(F-02)
Interest calculation run (F.52)

Define interest calculation type(OB46)

In this step you need to define the interest indicator and specify that it is used for account balance interest calculations or item interest calculations .

Prepare account balance interest calculations (OBAA)

Here , for the above defined interest indicator you need to give specifications like interest cal frequency, settlement day ,calendar type ,output control etc

Define reference interest rates (OBAC)

In this activity, you define your reference interest rates by entering a key and a name.

Define time dependent terms(OB81)

In this activity, you specify how the interest rate is to be determined for each interest indicator. You can make this specification dependent on currency and a validity date. You specify a condition(term) for each entry which determines which interest type it is (debit or credit interest).

Enter interest rates(OB83)

In this activity, you specify the required interest rates, dependent on the date for the reference interest rates.

Creation of GL masters(FS00)

(term loan a/c, interest a/c)
The master record of an account must contain an interest indicator so that it is taken into consideration during interest calculation

Assignment of accounts for automatic postings(OBV2)

In this activity you define the specifications for posting interest calculated on G/L account balances.

Assign accounts in full to the account symbols for the respective interest earned posting or interest paid posting. For the balance sheet account posting, a generic entry is possible.

Postings(F-02)

(term loan receipt, term loan repayment)

Interest calculation run (F.52)

Here you need to give your chart of accounts, GL accounts, company code and calculation period to specify the limits within which interest is to be calculated.