What are the steps for integration of FICO with other modules SD, MM etc. ?

Some basic information :

FI-MM: The integration between FI-MM happens in T-code OBYC.

1. When PO is created :

---- No Entry -----

2. When GR is posted

Inventory Account dr (Transaction Key BSX in OBYC)
To GRIR account (T.Key WRX in T-code OBYC)

3. When Invoice is posted

GRIR account Dr.
Vendor account Cr.

4. Payment made to Vendor

Vendor A/c Dr
To Bank Clearing A/c Cr.

Points to know : Movement Types, Assignment of Movement types to T-keys (T-code OMJJ), Value string (I also need some information on this) , OMWN and OMWB transactions.

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There is a close integration b/w FI & MM, actually document flows from MM to FI in the following areas such as,

1. Movement Types:

Used to enable the system to find the predefined posting rules determining how the accounts of financial accounting system are to be posted & to update the stock fields in the matrl master data.(Goods Receipt, Goods Issue, etc)

2. Valuation Class:

Assignment of material to grp of gl account, used to determine the gl accounts that are updated as a result of goods movement.

3. Transaction/Event key:

Used to control the storage or filing of documents & assignment of documents.Used to differeniate b/w various transactions such as goods movement tht occur in inventory.

4. Material Type:

Each material should assign mtrl type in mtrl master record used to update whether changes made in qty are updated in material master record & change in value also updated in stock account.

FI-SD Integration: The integration is done in T-code VKOA

1. Sales Order Created

---No Entry---

2. PGI done (Goods issue)

Cost of Goods Sold Dr (Configured in OBYC GBB T-Key)
To Inventory Account

3. Billing document released to Accounting

Customer Account Dr.
To Sales Revenue Account (ERL T-key in Pricing procedure)

Note : The GL account is assigned to this ERL in VKOA

4. Payment Received

Bank Clearing A/c Dr
Customer A/c Cr.

Points to Know : Good to understand the pricing procedure and how the different transaction keys are used like ERL, ERS etc.

Q1-What are adjustment postings and its use? Give t.codes and paths if possible?

Answer: fb50,f-02 and others could be used for adjustments. These adjustments are to correct any financial representation that has already been booked into the accounts.

Q2-Suppose I have purchased goods of 10 units(raw materials or semi-finished goods) worth Rs10000 from vendor A (suppose) and also made payment for the same. Now during the manufacturing process, it was observed that 3 units are defective, now my question is how do we deal with the defective units in SAP as I have already made payment for the 10 units(i.e Rs10000).

Answer: If you have a GRN against these materials, then the same can be return delivered. An appropriate movement type needs to be configured for the same. As for the payment, raise a credit note on the vendor.

* Using Debit Memo you can get the money for defective 3 units. *-- Gnan Eswari

Q.3-We always copy company code or we can create manually also? If possible give reasons also.

Answer: There are loads of tables that get copied over when copying co codes. This might be incomplete in a manual copy, and hence the manual route is not advisable.

Q.4-In case of APP, when bank master data updated?

Q.5-Suppose in 2004 I have depreciation key 'AB&in 2005 depreciation key I have changed to"CD". In what way my balances would be affected like balances of depreciation,accumulated depreciation,assets etc.

Answer: The difference in the depreciation that is posted already, and what should be posted with historical effect will be posted in the current accounting period.

Q.6 How many chart of accounts can be assigned to company code we can assign company code to chart of account through OB62? Now my question is in what way we can assign three types of chart of account to company code in one transaction code (I might be wrong plz correct me)

Answer: Three, although the group and country chart of accounts are optional. The group chart of accounts is assigned to the
operational chart of accounts, and the only mandatory CoA is the Operational CoA.

Q.7 How many financial statement versions can be assigned to co.code?

Answer: As many FSVs as you want can be assigned to the co code i.e. 1:n as of Co Code: FSV.

I have created Company Code and all other configuration related to the CCode. Also in MM I have created purchase order, created vendor, material etc. I couldn't activate the PO due to the following error messages in red:

1. MAINTAIN TOLERANCE LIMITS FOR TOLERANCE KEY PE ACCOUNT ASSIGNMENT
2. CONTROL INDICATORS FOR CONTROLLING AREA DO NOT EXIST.

I have assigned controlling area to company code and I could see the controlling area in existance via master file and gl verification.

1. MAINTAIN TOLERANCE LIMITS FOR TOLERANCE KEY PE ACCOUNT ASSIGNMENT ----> Please follow this link --> SPRO ---> MM---> Purchasing --> Purchase Order --> Set Tolerance limits for price variance --> Here you have to set for Tolerance keys PE and SE. Just copy them from std co. code.

2. CONTROL INDICATORS FOR CONTROLLING AREA DO NOT EXIST. ---->

In Controlling --> General Controlling --> Maintain Controlling Area --> Maintain Controlling Area --> Activate Components/Control Indicators --> You need to check if you want to activate the order management/activity based costing/commitment management etc.

What is the difference between company and company code?
A company is the organizational unit used in the legal consolidation module to roll up financial statements of several company codes.
The Company Code is the smallest organizational ! unit for which a complete self-contained set of accounts can be drawn up for purposes of external reporting.

How many chart of accounts can be attached to a company code?
One or more Operative Chart of Accounts can be assigned to a company code.

A COA must be aasigned to a company code. This COA is the operative COA and is used in both FI and CO. One Chart of Account can be assigned to many Company codes i.e., Multiple company codes can either share the same or have separate COA. But a company code (Country specific Company code or International Company code) can have a country specific COA also along with Operative COA. The link between the regular COA and the country COA appears in the alternate number field of the G/L master record.

Eg: If a company's subdidiaries are located in both US & Mexico. We need to configure 2 Company codes - one for US and another for Mexico,for eg U100 and M100. The same way we create 2 COA's one for US & one for Mexico, USCA and MXCA. Mexico has different govt reporting requirements than the US so we will need to define a company code specific to Country Mexico and also create a country specific COA to be used, in addition to normal COA. In tcode OBY6(Comp Code Global Parameters) of CC M100 we define normal COA i.e.,USCA in Chart of Accounts field and MXCA in Country Chart/Accts field.

What are substitutions and validations? What is the precedent?
Validations are used to check settings and return a message if the prerequisite check condition is met.
Substitutions are similar to validations; they actually replace and fill in field values behind the scenes without the user’s knowledge unlike validations that create on-screen msgs to the user.

What is a controlling area?
The Controlling Area is the central organizational unit within CO module. It is representative of a contained Cost Accounting envt where costs and revenues can be managed.

Define relationship between controlling area and company code?
A controlling area may include one or more company codes which must use the same operative chart of accounts as the controlling area. A Controlling Area can contain multiple company code assignments but a single company code can be assigned to only one controlling area.

What is a fiscal year variant?
Fiscal Year is a period of 12 months and SAP provides 4 special periods to posting adjustment Entries. Fiscal year determines posting periods. Posting periods are used to assign business transactions. Fiscal year may be year dependent or year independent.

What are special periods used for?
The Special periods in a fiscal year variant can be used for things like posting audit or tax adjustments to a closed fiscal year.

What do you mean by year dependent in fiscal year variants?
Year Dependent: the financial year is same as calendar year. Starting from 1st Jan to 31st Dec (where posting periods and the calendar months are equal)
Year Independent: the financial year is different from calendar year Starting from 1st April to 31st March (where the posting period months are not equal to calendar year months)

What are shortened fiscal year? When are they used?
Shortened Fiscal Year: a financial year, which has less than 12 periods.

What are posting periods?
The Posting period variant controls which posting periods, both normal and special, are open for each company code. It is possible to have a different posting period variant for each company code in the organization. The posting period is independent of the fiscal year variant.

What are document types and what are they used for?
Document type is the identifier of differentt account transactions like SA for G/L,AA for Asset Accounting etc.The doc. Types controls things like type of the account that can be posted to, the number range assigned to it, and required doc header fields.

How are tolerance group for employees used?
Tolerance group stores Posting amount defaults. Tolerance groups are assigned to User ID’s that ensures only authorized persons can make postings.

What are posting keys? State the purpose of defining posting keys?
Posting keys determine whether a line item entry is a debit or a credit as well as the possible field status for the transaction. Posting keys are SAP delivered. If u want changes like making additional fields optional on payment type posting keys then the best possible action is to copy the posting key that needs to be modified and then modify it.

What are field status groups?
Field status groups control the additional account assignments and other fields that can be posted at the line item level for a G/L account.

1. Where to assign activity type in cost centers? OR how to link cost centers & activity types?

>> There is no direct assignment. You plan the output for a cost center first in kp26. Then you've to plan the value of that cost center which you budget for a period in kp06. Planned Activity expenditure / Planned Actvty qty gives yoa planned act rate which you can use to valuate your activity confirmations in mfg ordrs. You can also define your own prices,but you have to run the price revaluation if you want to revaluate your actual activity prices.

2. For stat. key figure what is the significance of sender & receiver cost elements & cost centers?

>> Stat key fig are not real account assignments. In simple traditionl terms it is the base to allocate or define praportions with which the cost is allocated. SKFs are used to calculate the debit on a receiver object. These values can be used for assessing common costs which are used by all the other cost centers.

3. How SKF works .. Kindly give me T Codes Also.

>> You create & plan SKF.
Create using KK01 & PLAN the parameters of SKF in KP46

SAP Tips by: Dhiraj

1. Does any one know what is Software life cycle, it was a question asked in an interview.

2. In GL master we have a option "Balance in local currency" and "Account currency". What does it mean?

3. In movement type(MM), what is value & quantity string I know it updates values and quantities in GL with mix of valuvation class, transaction key modifier and GL A/c. But how does it work when doing a mvt type?

4. In FI when doing Special GL transaction what determines the fields statues of the screen and why do we have so many screens followed by it. Is it determined by Posting Keys? is it to determine Account type for which we are using the Special GL and debit and credit?

Q: Software Life Cycle,

Ans: it is nothing but Road Map - five phases like, Project Preparation, Blue print, Realisation, Final preparation and Go-live support.

Q: In GL master we have a option "Balance in local currency" and "Account currency".What does it mean?

Ans: Account currency is that the GL account in which currency do you want to maintain. if you decided that you want maintain in company code currency, you can post any currency in that account.
If not, you want to maintain separate currency for that GL then exchange rate difference will come because the conversion rate.

Balance in local currency - some GL account can't be maintain on open item basis and can't in foreign currency like clearing account and discount account etc., in such case you can assign this indicator to show the balance in local currency.

Q. In movement type(MM), what is value & quantity string I know it updates values and quantities in GL with mix of valuvation class, transaction key modifier and GL A/c. But how does it work when doing a mvt type?

Ans: Basically, the system does not know which GL has to be updated with what. here, we are giving a direction to the system to update the data.

What you said is correct, the system will update the value and qty in the material master. You would have seen some more fields also, like Movement indicator, consumption, value string and transaction event key etc.,

While creating a PO, the system will take the Movement type as a base, with MT, it will identify the MI(movement indicator - used to define whether it is goods movement for production order, purchase order, delivery note etc), and it will identify the consumption,( like it is assets, or consumption or sales order) and it will identify the value string ( it is must to assigned to movement type, through allocation of value string to movement type, system will automatically identify the GL ) and it will post the entry (dr/cr)in the GL based on the transaction and event key figure which is used to determine the debit and credit entry of a GL

1. Whether any FI doccument will be created during PO(Purchase order)? If please mention the entry also.
2. What factors differentiates from one dunning level and other dunning level?
3. APP There will be many banks in a house bank. If the payment should be maid from particular bank GL account. Where it is need to configured.
4. What are various types of servers in SAP R/3
5. Can anybody explain me FI-MM integartion.pl explain in detail
i. movement types
ii. account class
iii. material types
6. Maximum no. of dunning levels are created?
7. In how many ways APP is configured
8. What is diff between AAM, Recurring entries, Sample doccument?

Find here with the answers for your questions

1.Whether any FI document will be created during PO(Purchase order)?If pl mention the entry also?

Ans: There is no document that is created in FI side during PO. But in controlling there can be a commitment posting to a Cost Center. The offsetting entry is posted at the time of GR.

2.What factors differentiates from one dunning level and other dunning level

Ans: The most important thing that differentiates the dunning levels are the dunning texts. The dunning text defines the urgency of the dunning notice. The other things can be the dunning charges, minimum & maximum amounts etc.

3.APP

There will be many banks in a house bank. If the payment should be maid from particular bank GL account. Where it is configured.

Ans: There can be several accounts in the same house bank. We should assign the GL accounts exclusively at the time of creating the Bank master data and the bank accounts. Accordingly we can do the bank determination in FBZP for the individual banks and the corresponding sub accounts.

Tr code for Defining bank : FI12.

4.What are various types of servers in SAP R/3?

Ans: The Typical SAP landscape looks something like figure 1.4 below:

5.can anybody explain me FI-MM integartion.pl explain in detail

i. Movement types:

Classification key indicating the type of material movement (for example, goods receipt, goods issue, physical stock transfer).

The movement type enables the system to find predefined posting rules determining how the accounts of the financial accounting system (stock and consumption accounts) are to be posted and how the stock fields in the material master record are to be updated.

ii. Valuation class

Assignment of a material to a group of G/L accounts

Along with other factors, the valuation class determines the G/L accounts that are updated as a result of a valuation-relevant transaction or event, such as a goods movement.

The valuation class makes it possible to:

- Post the stock values of materials of the same material type to different G/L accounts
- Post the stock values of materials of different material types to the same G/L account

iii. Transaction/Event Key

Key allowing the user to differentiate between the various transactions and events (such as physical inventory transactions and goods movements) that occur within the field of inventory management.

The transaction/event type controls the filing/storage of documents and the assignment of document numbers.

iv. Material Type

Groups together materials with the same basic attributes, for example, raw materials, semifinished products, or finished products.

When creating a material master record, you must assign the material to a material type. The material type you choose determines:

- Whether the material is intended for a specific purpose, for example, as a configurable
material or process material
- Whether the material number can be assigned internally or externally
- The number range from which the material number is drawn
- Which screens appear and in what sequence
- Which user department data you may enter
- What procurement type the material has; that is, whether it is manufactured in-house or
procured externally, or both

Together with the plant, the material type determines the material's inventory management requirement, that is:

- Whether changes in quantity are updated in the material master record
- Whether changes in value are also updated in the stock accounts in financial accounting

6.Maximum no. of dunning levels are created?

Ans: 9 levels maximum.

7.In how many ways APP is configured?

Tr Code: FBZP

8.What is diff between AAM,Recurring entries,Sample doccument?

Account Assignment Model:

A reference for document entry that provides default values for posting business transactions. An account assignment model can contain any number of G/L account items and can be changed or supplemented at any time. In contrast to sample documents, the G/L account items for account assignment models may be incomplete.

Recurring Entries:

A periodically recurring posting made by the recurring entry program on the basis of recurring entry original documents.

The procedure is comparable with a standing order by which banks are authorized to debit rent payments, payment contributions or loan repayments.

Sample Documents:

Special type of reference document. Data from this document is used to create default entries on the accounting document entry screen.

Unlike an accounting document, a sample document does not update transaction figures but merely serves as a data source for an accounting document.

1. There is "company" field in the Company Code global settings. The R/3 help says that it is being used for consolidation. We can use Group Chart of account to do the same.
What is the significance of this field?
What is different between company & company code?

2. When we copy the COA, only one Fin Stat Version is being copied. A COA can have many Fin Stat Version. Why copying of COA allows only one Fin St Ver?

3. What are the information that are not copied to new company code when we copy company code?

4. Whether one group chart of account can be assigned to 2 Operational charts. For Eg. INTA and INTB is being used by group of company as OCA. Whether GCA GRP can be assigned to INTA and INTB?

1A). Company is an organizational unit which is generally used in the legal consolidation to roll up financial statements of several company codes. A company can include one or more company codes. If we are going for Consolidation , we need to enter the 6 character alphanumeric company identifier that relates to this company code.

Company Codes within a Company must use the same chart of accounts and fiscal year. And for consolidation purpose we use Group COA wherein we link the Operating COA thru entering the GL account no. of the Group COA in the GL Account of the Operating COA.

2A). A financial statement version corresponds to the chart of accounts and wherein Individual (operational) accounts are assigned to the corresponding FS item on the lowest level of this version. But as for the rollup of Accounts is not possible in all the FSV which can be copied, n rather can update manually n create multiple FSVs if necessary depending on the Financial Statements which are necessary for the Organisation.

3A). All the Organizational units (Global Data) for a company code will b copied to new company code upon using the copy function except for the transactional data.

4A). Yes, Group COA can be assigned i.e., the GL A/c.No. is linked to the GL Accounts of the both Operating COA . That means Group COA consists of Unique set of Accounts which can be linked to Op.COA –1 and Op.COA –2.

SAP FI/CO Tips by: Sneha Reddy

Ans: Q.No.1. In the SAP system, consolidation functions in financial accounting are based on companies. A company can comprise one or more company codes. for example: Company A have 4 company codes which is existing in different state and / or country. When Company A wants to consolidated the accounts, it will give the common list of accounts which in turn called group chart of accounts. Group chart of account is used to define/ list the GL account uniformly for all company codes.