FI/CO CONFIGURATION MATERIAL WITH BLUE PRINT

Complete SAP FI/CO 420 page self study material available with step by
step
configuration in detail with transaction codes configuration paths
along
with entries in fields by SAP project manager implementation CD
loaded
with snapshots in word and pdf format of different modules REAL TIME
business blue prints so that 1 can know what happens in real time is
available for sale at a very affordable price.
GL AP AR AM CO CCA PCA CEA PA also integration with SD MM PP LOGISTICS
perfect for home study.
All topics covered,few copies left contact immediately before you
regret.

Course contents-SAP

1. WHO ARE SAP CONSULTANTS?
The parametric knowledgeable person who gains the skills to implement and upgrade sap product are known as consultant.

2. HOW DOES SAP TRAINING HELP ONE?
SAP Training develops skills and experience in the practical management and ERP (SAP) technology. SAP training helps you maximize and accelerate the return on your investment in SAP solutions and gain the competitive advantage from your SAP solutions.

3. I HAVE NO KNOWLEDGE AND EXPERIENCE IN SAP BUT WOULD LIKE TO TAKE UP SAP COURSES. WHAT ARE THE RECOMMENDED COURSES?
Beginners are encouraged to take up level 1 course. There is SAP01 overview course which are relevant to beginners.

4. WHAT ARE THE PRE-REQUISITES FOR ATTENDING SAP TRAININGS?
SAP E-Academy trainings are intensive in nature. It is essential to have good domain

knowledge to undertake SAP Trainings. Candidate must possess appropriate academic qualification, backed by domain knowledge.

Minimum required qualification is graduation with two years of domain experience. Those who don’t have a degree must have eight to ten years of domain experience to undertake the training. Longer duration of domain experience covering various aspects of the domain is very useful for functional trainings in particular. You need to be strong in programming concepts to take the technical module of SAP E-Academy.
The preferred qualification for undertaking training in various modules is given below:
FICO Master’s degree in Commerce, Finance, CA, CFA, ICWA
HR Master’s in HR
PP Masters in Production
MM Master’s in Materials
SD Master’s in Marketing
ABAP All Computer Graduates and Post Graduates

5. WHAT IS SAP TRAINING?
There are 2 types of SAP Trainings:
ILT: Instructor-led Training
OLT: Online (e-learning) Training

Instructor-led Training

• Fixed days and schedule

• Repetition of lessons is not possible

• Certification to be taken immediately after training

• More expensive
Online (e-learning) Training

• Flexible and time conscious

• Repetition of previous lessons can be taken any no. of times

• Certification can be taken at ease

• Cost effective

6. HOW DOES ONLINE (E-LEARNING) TRAINING WORK?

SAP has introduced a new learner-centric approach to training: a range of highly interactive Web-based courses designed specifically to deliver effective knowledge transfer - wherever and whenever it’s needed.

To provide flexible, targeted SAP training, the courses in the series are built to support a blended learning approach – where it is possible to build a learning path which takes into account both the best of traditionally instructor-led class-room training with the benefits of cutting-edge e-learning technology. e-Learning courses enable you to :

Improve the return on your training investment
Increase productivity & reduce TCO (total cost of ownership)
Boost motivation
Transfer business process knowledge related to SAP effectively
Use your time in the most efficient way
Plan your training to suit your schedule
Revisit or revise content at later date
Monitor your performance
Identify additional learning needs
7. CAN I TAKE A SAMPLE SESSION TO REVIEW THE E-LEARNING FACILITY AND ITS SUITABILITY FOR MY EDUCATION AND TRAINING?
YES. Candidates are advised in their own interest to take a sample DEMO session before joining the course to ensure that there are no issues regarding the structure of the course.
8. WHEN CAN I DO MY E-LEARNING? WHAT ARE THE DAYS AND TIMINGS WHEN I CAN TAKE MY E-LEARNING LESSONS?
Training timings for e-academy is very flexible and time conscious, one can attend according to their connivance any day any time (24/7) except national holidays.

9. WHAT IS SAP CERTIFICATION PROGRAM?
In the business world, SAP certification is most valuable in establishing your credentials. Those who hold it have honed their skills through rigorous study or direct experience. They have demonstrated their abilities by passing demanding, process-oriented exams. Regardless of whether you are an SAP partner, customer, or user, SAP certification can give you a distinct competitive advantage.

10. WHAT ARE THE PRE-REQUISITES FOR CERTIFICATION?
There are two ways by which a person can get certified.
1. by undergoing training at any of the Authorized Education Partners of SAP.
2. Should have at least 2 Implementation, were the Company authenticates and sponsor for the candidate. The Company, which is sponsoring the candidate, needs to be a SAP Partner

11. CAN I TAKE UP THE CERTIFICATION EXAMINATION ALONE, IF I HAVE UNDERTAKEN SAP TRAINING IN OTHER INSTITUTIONS (OTHER THAN THE SAP PARTNERS)
SAP does not recognize trainings undertaken at any institute other than the SAP EDUCATION PARTNERS. Certification is not available to such candidates.


12. WHAT IS THE FORMAT OF THE EXAMINATION?
The certification exam for core modules consists of 80 questions, which lasts for 3 hours. The no. of questions/duration may vary for advanced area. The questions are objective in nature. These examinations are release specific and reflect the actual tasks of an SAP consultant. The exams are standardized worldwide and carried out under the supervision of SAP.

13. HOW DOES ECC 6.0 TRAINING DIFFER FROM ECC 5.0?
SAP India has introduced SAP training in version ECC 6.0 for all core modules from 24th Dec 2007. Earlier version was ECC 5.0.
The following are the changes brought in for trainings in ECC 6.0
i. Training and training material pertains to version ECC 6.0.
ii. A component of ‘e-Learning’ has been introduced for SD, MM, HR, FI & PP modules.
a. ‘e-Learning’ enables participant to complete a portion of training at their own pace.
b. The participant has an option to do the ‘e-Learning’ portion of the training at the Training Centre or at their own place/office.
c. Major portion of the ‘e-Learning’ has to be completed by the participant before the instructor-led class-room training starts as per the schedule. Hence, candidates must complete the required ‘e-Learning’ trainings in the previous week itself. All that is needed is a good connectivity to internet, a good PC with sound card and speakers or head phones to do ‘e-Learning’ from own place/office.
d. When you choose to do e-Learning at your own place/office, the total number of days away from own place/office is just 20 days as against 25 days earlier.
e. It is highly recommended to register nominations at least three weeks in advance along with fees to block the seat. Candidate will need to exercise their choice of place (own place/office or Training Centre) to do the ‘e-Learning’ at the time of registration.
f. Please Note: There is NO e-Learning component for trainings in PS, PM, QM & ABAP modules as of now & hence the training duration for the instructor-led training at the training centre remains the same for these trainings.

14. IS THERE ANY CHANGE IN FEE STRUCTURE FOR ECC 6.0 TRAININGS?
No. There is no change in the fee structure for ECC 6.0. On the other hand, candidates have greater flexibility in doing some portion of learning at their own end (less time away from work) at their own pace with the help of powerful user-friendly interface, with slide show, voice-over training material delivered by SAP over internet to registered candidates.

15. WHAT IS THE PROCEDURE FOR RIGESTRATION AT MYM?
For registration candidate as to come to our centre along with DD of training fees, copy of resume and 2 passport size photography

16. IS SAP TOO UNDER RECESSION?

1. The SAP Consulting Market seems to be very strong. Indicators include the fact that 50% or more of the people we try to recruit for direct-hire roles only want consulting. Bill rates are strong. Great SAP Talent is always on project and can easily get multiple contract offers in a fairly short time.
2. Major companies are committing to NEW SAP implementations and major upgrades creating large-scale hiring projects and opportunities for consulting partnerships.
3. 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. I see a little slow down with Manufacturing, Food/Beverage, CPG, and Chemical industries....
4. Companies are still seeking SAP Direct-Hire talent and are willing to pay very healthy fees & relocation to get the talent they seek.
5. 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)
6. Lastly, certain SAP skills seem to be in HIGH Demand including: Net weaver, XI, Enterprise Portals, BI 7.0, APO, CRM, SCM/SRM, WM, IS-Retail, AFS, HCM, and as always FI/CO!
SOURCE:INTERNET

SAP CONTROLLING-FUNDAMENTAL

Controlling Area:

The controlling area is the central organizational unit of the Controlling (CO) component. You use the controlling area to carry out cost accounting.

If you implement the Controlling component, postings are forwarded from Financial Accounting to Controlling. During posting, you can specify any additional account assignments relevant for cost accounting (for example, cost center or internal order). You must assign a controlling area to your company code to ensure that this data is forwarded to Controlling for further processing for cost accounting.

The company code and controlling area do not have to exist in a one-to-one relationship. You have the following options for this assignment:

· The company code can correspond to exactly one controlling area

· Several company codes can correspond to one controlling area

Internal business transactions are portrayed in the controlling area. Primary costs are transferred from external accounting and classified according to managerial accounting perspectives. If the primary costs are direct costs, then they are assigned to cost objects. If they are overhead costs, then they are assigned to cost centres or overhead cost orders. The system then allocates them using internal allocation techniques, according to their source.

When you create master data, the system always assigns the Controlling objects to a controlling area and a company code.

The level of detail provided by the Controlling component enables you to track specific information for cost monitoring, business decisions and sales control. For example, the Controlling component contains subdivisions such as cost centres and internal orders in addition to accounts.

Cost Elements

A cost element corresponds to a cost-relevant item in the chart of accounts.

Primary Cost Element:

A primary cost or revenue element is a cost or revenue-relevant item in the chart of accounts, for which a corresponding general ledger (G/L) account exists in Financial Accounting (FI). You can only create the cost or revenue element if you have first defined it as a G/L account in the chart of accounts and created it as an account in Financial Accounting. The SAP System checks whether a corresponding account exists in Financial Accounting.

Examples of primary cost elements include:

· Material costs

· Personnel costs

· Energy costs

Secondary Cost Element:

Secondary cost elements can only be created and administrated in cost accounting (CO). They portray internal value flows, such as those found in internal activity allocation, overhead calculations and settlement transactions.

When you create a secondary cost element, the SAP System checks whether a corresponding account already exists in Financial Accounting. If one exists, you cannot create the secondary cost element in cost accounting.

Examples of secondary cost elements include:

· Assessment cost elements

· Cost elements for Internal Activity Allocation

· Cost elements for Order Settlement

The assessment cost elements are used in transfer of costs between cost centres.

Cost elements for internal activity allocation are used activity types.

Cost elements for order settlement are used for calculation and posting of Work-in-progress.

Cost Element Group

You can collect cost elements with similar characteristics in cost element groups.

You can use cost element groups in the information system, for example. You can use the cost element group structure to define the row structure of your reports. Totals are calculated in the report for each node.

You can also use cost element groups whenever you want to process several cost elements in one transaction. For example, in cost center planning, distribution or assessment

Cost Center:

The Cost centre is used in Legacy Package to analyse those expenses, which are recurring in nature, and detailed analysis is required for such expenditure.

Organizational unit within a controlling area that represents a clearly delimited location where costs occur. You can make organizational divisions on the basis of functional, settlement-related, activity-related, spatial, and/or responsibility-related standpoints.

The Term Cost center means the specific area or individual department, Item where we would like to capture our expenses based on the same the expenditure analysis can be done.

Cost Center Groups

You can collect cost centres according to various criteria into groups. This enables you to use cost centres to depict the structure of the organization in the SAP System.

You can use the groups to build cost center hierarchies, which summarize the decision-making, responsibility, and control areas according to the particular requirements of the organization. The individual cost centres form the lowest hierarchical level.

There must be at least one group that contains all cost centres and represents the entire business organization. This cost center group is described as the standard hierarchy. You can assign more cost center groups to the standard hierarchy.

You can also create any number of alternative groups. You can structure these, for example, according to organizational and/or functional viewpoints. Cost center groups enable you to perform evaluations for each decision-making, responsibility, or control area. They also support the processes during planning and internal allocations.

You can assign each cost center to only one group in the standard hierarchy, but to as many alternative groups as you require.

ACTIVITY TYPE

Activity types classify the activities produced in the cost centres within a controlling area.

To plan and allocate the activities, the system records quantities that are measured in activity units. Activity quantities are valuated using a price (allocation price).

In Overhead Cost Controlling, costs based on the activity quantity of an activity type are posted separately in fixed and variable portions. When you divide the activities of a cost center into activity types, you should consider whether the costs could be allocated effectively to the activity types.

The prices of the activity types of a cost center can be either entered manually, or calculated by the system based on the costs allocated to the activities. Prices can be calculated either using plan costs or actual costs.

You can plan, allocate, and control costs either at the activity type level of a cost center, or at the cost center level. You can enter actual costs at the cost center level. Costs entered at the cost center level are assigned using splitting.

When the activities produced by a cost center are used by other cost centres, orders, processes, and so on, this means that the work centers of the sending cost center are being used by the other objects.

You can assign one activity type, multiple activity types, or no activity types to a cost center.

Internal Orders

· You use statistical orders to evaluate costs that cannot be itemized in detail in Cost Element Accounting or Cost Center Accounting.

· You achieve this by assigning the costs to both the statistical order and the responsible cost center, which directly displays the costs on the order (statistical, for information purposes only) and the cost center (real costs).

· The cost center to which you want to post costs can be stored in the master data. This enables the system to find the cost center automatically. Normally you need to specify the cost center and the order so that the posting document is complete.

· You also have the option on a statistical order whether to record a company code and business area on the order master record. If you make these assignments, you can only post transactions to controlling objects, such as cost centres, which belong to the same company code and business area

· You can neither settle statistical orders nor apply overhead to them.

Standard Cost:

Normal expected cost of an operation, process or product including labour, material and overhead charges computed on the basis of past performance costs, estimates of work measurement. This is used as measurement against the actual. In other words, it’s a provisional cost that is used as the basis for the budget and is founded in past cost records and technical specifications, which serves as a benchmark against which to compare the actual cost.

Actual Cost:

An actual costing system determines the actual labour, material and overhead expenditures for the period and assigns them directly to cost objects, The amount of overhead applied, therefore, is always equal to the amount of overhead incurred.

Variance:

It is the difference between the estimated cost of an activity and the actual cost of that activity.

Product:

A finished good made after allowing it to undergo the various processes of manufacturing, based on the specifications given by the customers, that is intended to be useful for the end user as tile allowing the customer to give it a unique name, that is, a product name.

Machine hour:

It is the cost incurred in running the Machine per hour and includes the cost of repairs and maintenance, depreciation, insurance etc.

Material Saving:

It is the difference between Standard Cost and Actual Cost for the Actual Yield, achieved due to the skill and efficiency of the work force and adoption of better systems in the manufacturing process.

Types of the planning:

Each planning screen has the option of 1) Free Planning 2) Form Based planning. For example, we have assigned four cost elements to a group. We are in the process to plan cost elements for cost centers. In the former case, the planning screen for a cost center will be empty and we have to manually input the requisite cost elements numbers and their values for planning. While in the second case all the four cost elements numbers will be automatically displayed in the planning screen of the cost center and we need to simply key in the amounts.

Cycles:

Many of the processes like reposting, distribution, assessment, indirect activity allocation etc. uses cycles for transferring cost from one cost centers (called sender cost centers) to the other cost centers (called receiver cost centers). The other receivers in the cycle could be internal orders, cost objects, WBS elements.

Cost Element Accounting

Cost and Revenue Element Accounting provides you with an overview of the costs and revenues that occur in an organization. Most of the values are moved automatically from Financial Accounting to Controlling. Cost and Revenue Element Accounting only calculates costs, which either do not have another expense or only one expense in Financial Accounting.

Cost Centre Accounting

You use Cost Centre Accounting for controlling purposes within your organization. It is useful for a source-related assignment of overhead costs to the location in which they occurred.

Internal Order Accounting

Internal orders are normally used to plan, collect, and settle the costs of internal jobs and tasks. The SAP system enables you to monitor your internal orders throughout their entire life-cycle; from initial creation, through the planning and posting of all the actual costs, to the final settlement and archiving.

Product Cost Controlling

Product Cost Controlling calculates the costs that occur during manufacture of a product, or provision of a service. It enables you to calculate the minimum price at which a product can be profitably marketed.

FI CONFIGURATION MANNUAL

B.Jyotiraditya,ACA,MBA(FIN),SrSAP FI/CO CONSULTANT

SAP – FI/CO

SYSTEMS, APPLICATIONS AND PRODUCTS

IN DATA PROCESSING

Financial Accounting – General Topics

The Financial Accounting (F1) application component fulfills all the international requirements that must be met by the financial accounting department of an organization. It provides the following features:

1 Management and representation of all accounting data.

All business transactions are recorded to the document principle, which

provides an unbroken audit trail from the financial statements to the individual documents.

2 Open an integrated data flow

Data flow between financial Accounting and the other components of the SAP System is ensured by automatic updates.

3 Preparation of operational information to assist strategic decision-making within the organization.

Integration of Financial accounting with other component

All accounting-relevant transactions made in Logistics (LO) or Human Resources (HR) components are posted real-time to Financial Accounting by means of automatic account determination. This data can also be passed on to controlling (CO). This ensures that logistical goods movements (such as goods receipts and goods issues) are exactly reflected in the value-based updates in accounting.

The Financial Accounting application component comprises the following sub-components.

4 General Ledger (FI-GL)

5 Accounts Payable (FI-AP)

6 Accounts Receivable (FI-AR)

7 Assent Accounting (FI-AA)

Organizational Units and Basic Settings

Definition

Elements of the SAP System logical structure, important for Financial Accounting

Organizational units are used to structure business functions and for reporting. The Organizational units of Financial Accounting are used for external reporting purposes, that is. They fulfill requirements that your business is subject to from external parties. For example, legal regulations. The financial statements for example, are created based on the Organizational units of Financial Accounting.

Basic settings in Financial Accounting are Customizing settings that you have to make in order to be able to carryout process in Financial Accounting.

Use

You create your company-specific organizational structure in the SAP System by defining the organizational units and making the basic settings. Defining organizational units for Financial Accounting is obligatory, that is, you have to define these units in order to be able to implement the Financial Accounting component.

Organizational unit	Definition
Client	Obligatory
Company	Optional
Company Code	Obligatory
Business Area	Optional
Basic Settings
Chart of accounts	Obligatory
Fiscal year	Obligatory
Currencies	Obligatory

In the SAP System, you define the relevant organizational units for each component that you are implementing. For example, for Sales and Distribution, you define sales organizations, distribution channels, and divisions (product groups). Similarly, for Purchasing, you define purchasing organizations, evolution levels, plants, and storage locations. The organizational units are independent of one another at this stage.

Components and Organizational Units PAGE 4

Component	Organizational Units
Sales and Distribution	Sales Organization
Logistics	Purchasing Organization
Financial Accounting	Company Code

Controlling	Controlling Area
Human Resources	Employee groups

To transfer data between the individual components. You have to assign Organizational units to each other; you only make to need these assignments once in the system. Whenever you enter data subsequently. It is automatically transferred.

Define Organizational Units

Creaton of company (i.e., Group Company):

The smallest organizational unit for which individual financial statements can be drawn up according to relevant commercial law. A company can consist of one or more company code. All company codes with in a company must use the same transaction chart of accounts and the same fiscal year breakdown. The company code currencies be different.

A company has one local currency I which its transaction figures are recorded.

Tools – Customizing – Img (implementation guide) – Edit project – SPRO Select SAP Reference IMG button.

SPRO- Enterprise structure Definition – Financial accounting – Define company.

Select New Entries button

Company : TGCO

Company Name : Tata Group Companies

Address of Company: Optional Fields

Country : IN

Currency : INR

Language : EN

Ctrl+S to Save Data

Define Credit Control Area

In this step you define your credit control areas. The credit control area is an organizational unit that specifies and checks a credit limit for customers.

A credit control area can include one or more credit control area. It is not possible to assign a company code to more than one control area. With in a credit control area, the credit limits must be specified in the same currency.

SPRO- Enterprises Structure- Definition- PAGE 5

Financial Accounting- Define Credit

Credit Control Area TCCA

Currency INR

Update 000012

Fiscal Year V3

Ctrl+S to Save Data

Creaton of Company Code

Definition

Smallest organizational unit of external accounting for which a complete, self-contained set of accounts can be created. This includes the entry of all transactions that must be posted and the creation of all items for legal individual financial statements, such as the balance sheet and the profit & loss statement, the definition of the Company code organizational unit is obligatory.

Use

The Company codes create a legally independent the SAP System with one company code. However, you can also define a company code according to other criteria. A company code could also be a separate, but not independent. Commercial place of work. This is necessary for example; if the place of work is actually situated in a different country and evaluations therefore have to be carried out in the appropriate national currency and in accordance with other tax and legal specifications.

If you want to manage the accounting for several independent companies simultaneously, you can set up several company codes in one client. You must set up at least one company code in each client.

To define a company code, choose the following in Customizing for the

SPRO- Enterprise Structure – Definition – Financial accounting – Edit, Copy, Delete, Check Company Code ---OX02

Double Click on Edit Company code Data

Select New Entries button

Company Code TCS

Company Name Tata Consultancy Services

City Hyderabad

Country IN

Currency INR

Language EN

Ctrl+S to save data and give Address Details

Select New Entries button

Company Code TSL

Company Name Tata Steel Limited

City Bangalore

Country IN

Currency INR

Language EN

Ctrl+S to save data and give Address Details

Define Business Area

Definition

Organizational unit of external accounting that corresponds to a specific business segment or area of responsibility in a company. Movements in value entered in Financial Accounting are assigned to business areas.

Financial statements can be created for business areas for internal purposes.

The definition of the business area organizational unit is optional.

Use

Business areas are used in external segment reporting (over and above company codes) based on the significant areas of operation of a company for example, product lines, and branches.

To define business areas, choose the following in customizing for the

SPRO - Enterprise structure - Definition - Financial Accounting - Define Business Area ----OX03

Select New Entries button

Business Area Description

HYD Hyderabad Business Area

BAN Bangalore Business Area

MUM Mumbai Business Area

DEL Delhi Business Area

Ctrl+S to Save data

Define Functional Area

Definition

Account assignment characteristic that sorts operating expenses according to functions.

For example:

Production

Administration

Sales

Research and Development

Use

If you want to use cost of sales operating expenses according to functions areas to sort your operating expenses.

You define your functional areas in Customizing under.

SPRO - Enterprise Structure - Definition - Financial accounting - Define functional Area

Select New Entries button

Functional Area Description

PRM Production

ADM Administration

SAL Sales

R & D Research and Development

Crtl+ S to Save Data

Maintain financial Management area

In this step. you create your financial management (FM) areas. The financial management area is an organizational unit within accounting which structures the business organization from the perspective of Cash Budget Management and Funds Management.
You define the functional characteristic of FM areas separately for both Cash Budget Management and Funds Management in the implementation guide for each of these areas.

SPRO - Enterprise Structure - Definition - Financial accounting - Define Functional Area

Select New Entries button

FM Area FM Area Test FM Area Currency

TFMA Tata Fin Management Area INR

Ctrl+S to Save Data

Assign Organizational Units

Assign company code to company

In this step you assign the company code which you want to include in this group accounting to a company

SPRO - Enterprise Structure - Assignment - Financial Accounting -Assign company code of company

Company Code Company

TCS TGCO

TSL TGCO

Ctrl+S to Save Data

Assign company code to credit control area

In this step, you assign company codes to a credit control area

SPRO - Enterprise Structure - Definition - Financial accounting - Assign company code to a credit control area

Company Code Company

TCS TCCA

TSL TCCA

Ctrl+S to Save Data

Assign business area to consolidation business area

In this step you allocate the business areas to consolidation business areas, as required for consolidations.

SPRO - Enterprise Structure - Definition - Financial accounting - Assign business area to consolidation business area

Business Area Consolidation Business area

HYD SOTH

BAN SOTH

MUM NOTH

DEL NOTH

Ctrl+S to save data

Assign company code to financial management area

In this IMG activity you assign each company code which is relevant to cash budget Management or Funds Management to FM area.

In the case cross company code Cash Budget Management/Funds Management. You can combine several company codes in a single FM area. You must assign all the company codes in question to the same FM area.

SPRO - Enterprise Structure - Definition - Financial accounting - Assign company code to financial management area

Company Code FM Area

TCS TFMA

TSL TFMA

Ctrl+S to Save Data

Fiscal Year

Maintain Fiscal Year Variant

Definition

Usually a period of twelve months for which a company regularly creates financial statements and check inventories.

The fiscal year may correspond exactly to the calendar year, but this is not obligatory. Under certain circumstances a fiscal year may be less than 12 months (shortened fiscal year)

Structure

A fiscal year divided into posting periods. Each posting period is defined by a start and finish date. Before you can post documents you must define posting periods. Which i turn define. The fiscal year.

In addition to the posting periods you can also define special periods for year end closing. In Gender Lender Accounts a fiscal year ca have a max of 12 posting periods and for special periods you can define up to 366 posting periods in Special Purpose Year?

Use

In order to assign business transactions to different term periods, you must define a fiscal year. with posting periods, Defining the fiscal year is obligatory.

You define your fiscal year as fiscal year variations which assign to your company code.

One fiscal year variant can be used by several company codes. You have the following options for defining fiscal year variants

· Fiscal Year same as Calendar Year

· Fiscal Year differs from calendar year. The posting periods can also be different to the calendar months

Apr -- Mar + 4 Special Periods V3

July -- June + 4 Special Periods V6

Oct -- Sep + 4 Special Periods V9

Jan -- Dec + 4 Special Periods K4

You define your fiscal year variants in customizing for Financial Accounting as follows:

SPRO - Enterprise Structure - Definition - Financial accounting Global settings – Fiscal Year – Maintain Fiscal year Variant (Maintain Shortened Fiscal Year)

TC---OB29

Select V3 Variant and Press Company as Button.

Define User Defined Variant Name T3 then save it

Then Double Click on Periods and Select Yes

Month Day Period Year Shift

1 31 10 -1

2 28 11 -1

3 31 12 -1

4 30 1 0

5 31 2 0

6 30 3 0

7 31 4 0

8 31 5 0

9 30 6 0

10 31 7 0

11 30 8 0

12 31 9 0

Assign Company Code to Fiscal Year Variant

For every company code, you must specify which fiscal year is to be used.

SPRO - Enterprise Structure - Definition - Financial accounting Global settings – Fiscal Year – Assign Company Code to a Fiscal Year Variant

Company Code Fiscal Year Variant

TCS T3

TSL T3

Chart of Accounts

Edit Chart of Accounts List

Definition

This is a list of all G/L accounts used by one or several company codes. For each G/L account, the chart of accounts contains the account number, account name, and the information that controls how an account functions and how a G/L account is in a company code.

Use

You have to assign a chart of accounts to each company code. This chart of accounts is the operating chart of accounts and is used for the daily postings in this company code. You have the following options when using multiple company codes.