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What are the various organizational assignments to acompany code?Company Code is a legal entity for which financialstatements like Profit and Loss and Balance Sheets aregenerated. Plants are assigned to the company code,

Purchasing organization is assigned to the company code,and Sales organization is assigned to the company code

How many Chart of Accounts can a Company code have?A single Company code can have only one Chart of Account.The Chart of Accounts is nothing but the list of GeneralLedger Accounts.

What is a year dependent fiscal year variant?In a year dependent fiscal year variant the numbers of daysin a month are not as per the calendar month.

Let us take an example:-For the year 2005 the period January ends on 29th, Feb endson 27th, March ends on 29. For the year 2006 January endson 30th, Feb ends on 26th, March ends on 30th. This isapplicable to many countries especially USA. Ever year thisfiscal year variant needs to be configured.

How does posting happen in MM (Materials Management) duringspecial periods?There is no posting which happens from MM in specialperiods. Special periods are only applicable for the FI

module. They are required for making any additional postingsuch as closing entries, provisions. Which happen duringquarter end or year end.

How many currencies can be configured for a company code?A company code can have 3 currencies in total. One which iscalled the local currency (ie company code currency) and 2parallel currencies can be configured. When you do that thesystem has the flexibility to report in the differentcurrencies.

Do you require configuring additional ledger for parallelcurrencies?In case 2 currencies are configured. (Company code currencyand a parallel currency) there is no need for an additionalledger. In case the third parallel currency is configuredand is different than the second currency type, you need toconfigure additional ledger.

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If there are two company codes with different chart ofaccounts how can you consolidate their activities?In this case you either needs to write an ABAP programmeror you need to implement the Special Consolidation Moduleof SAP. If both the company codes use the same chart of

accounts then standard SAP reports give you the consolidatefigure.

What is a Financial Statement Version?An FSV(Financial Statement Version) is a reporting tool andcan be used to depict the manner in which the finalaccounts like Profit and Loss Account and Balance Sheetneeds to be extracted from SAP. It is freely definable andmultiple FSV's can be defined for generating the output forvarious external agencies like Banks and other statutoryauthorities.

Is it possible to maintain plant wise different GL codes?The valuation group code should be activated. The valuationgrouping code is maintained per plant and is configured inthe MM module. Account codes should be maintained pervaluation grouping code after doing this configuration.

Is Business area at company code Level?No. Business area is at client level. Which means othercompany codes can also post to the same business area.

What are the different scenarios under which a BusinessArea or a Profit Center may be defined?This question is usually very disputable. But both BusinessAreas and Profit centers are created for internalreporting. Each has its own pros and cons but manycompanies now days go for Profit center as there is afeeling that business area enhancements would not besupported by SAP in future versions.There are typical month end procedures which need to beexecuted for both of them and many times reconciliation

might become a big issue. A typical challenge in both ofthem is in cases where you do not know the Business Area orProfit Center of the transaction at the time of posting.

What are the problems faced when a Business area isconfigured?

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The problem of splitting of account balance is morepertinent in case of tax accounts. Also SA

Is it possible to configure the system to pick up adifferent exchange rate type for a particular transaction?

Yes it is possible. In the document type definition of GL,you need to attach a different exchange rate type.

What are the Customizing prerequisites for documentclearing?Account must be managed on the open item management. Thistick is there in the General Ledger Master Record calledOpen Item Management. It helps you to manage your accountsin terms of cleared and uncleared items. A typical examplewould be GR/IR Account in SAP (Goods Received/Invoice

Received Account)

Explain the importance of the GR/IR clearing account.GR/IR is an interim account. In legacy system if the goodsare received and the invoice is not received the provisionis made, in SAP at the Goods receipt It passes theaccounting entry debiting the Inventory and crediting theGR/IR Account. Subsequently when an invoice is recd thisGR/IR account is debited and the Vendor account iscredited. That way till the time that the invoice is not

received the GR/IR is shown as uncleared items.

Under the Chart of depreciation all the depreciationcalculations are storedExplain the importance of asset classes. What asset classes

are there?

The asset class is the main criterion for classifyingassets. Every asset must be assigned to only one asset class. Examples of asset classare Plant& Machinery, Furniture & Fixtures and Computersetc. The asset class also contains the Gl accounts which

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are debited when any asset is procured. It also containsthe gl accounts for depreciation calculation, scrapping etc

Whenever you create an asset master you need to mention theasset class for which you are creating the required asset.

In this manner whenever any asset transaction happens thegl accounts attached to the asset class is automaticallypicked up and the entry passed.You can also specify certain control parameters and defaultvalues for depreciation calculation and other master datain each asset class.

How are depreciation keys defined?

The specifications and parameters that the system requiresto calculate depreciation amounts are entered in

Calculation methods. Calculation methods replace theinternal calculation key of the depreciation key.Depreciation keys are defaulted in Asset Master from theasset class. Refer to the configuration for more details ofhow depreciation is calculated.

What steps do you have to take into account to ensure thatintegration into thegeneral ledger for the depreciation posting run works?

For each depreciation area and company code, specify the

following:_the frequency of posting depreciation(monthly, quarterlyetc)_CO account assignment (cost center)_For each company code you must define a document type forautomatic depreciation posting only: This document typerequires its own external number range._You also need to specify the accounts for posting.(Account determination)_To ensure consistency between Asset Accounting andFinancial Accounting, you must process the batch input

session created by the posting report.If you fail to process the batch input session, an errormessage will appear atthe next posting run. The depreciation calculation is amonth end process whichis run in batches and then once the batch input is run thesystem posts the accounting entries into Finance.

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How you change fiscal year in Asset Accounting?

_The fiscal year change program opens new annual valuefields for each asset. In next year_The earliest you can start this program is in the lastposting period of the current year._You have to run the fiscal year change program for yourwhole company code._You can only process a fiscal year change in a subsequentyear if the previous year has already been closed forbusiness.

Take care not to confuse the fiscal year change programwith year-end closing for accounting purposes. This fiscalyear change is needed only in Asset Accounting for varioustechnical reasons.

Is it possible to have depreciation calculated to the day?Yes it is possible. You need to switch on the indicator Depto the day in the depreciation key configuration.

Is it possible to configure that no capitalization beposted in the subsequent y

ears?Yes it is possible. You need to set it in the depreciationkey configuration.

How are Capital WIP and Assets accounted for in SAP?Capital WIP is referred to as Assets under Construction inSAP and is represented by a specific Asset class. Usuallydepreciation is not charged on Capital WIP

. All costs incurred on building a capital asset can bebooked to an Internal Order and through the settlement

procedure can be posted onto an Asset under Construction.Subsequently on the actual readiness of the asset forcommercial production, the Asset Under Construction getscapitalized to an actual asset.

What is the purpose of defining internal orders?

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Internal Orders are basically used for tracking of costs,which are proposed to be incurred over on a short termbasis and time tracking is not of much essence.Eg An Advertisement campaign. Sales promotion andexhibition expenses etc.

How do you go about setting the FI MM accountdetermination?

FI MM settings are maintained in transaction code OBYC.With in these there are various transaction keys to bemaintained like BSX, WRX, GBB, PRD etc. In each of thesetransaction keys you specify the GL accounts which getautomatically posted at the time of entry.Few examples could be:BSX- Stands for Inventory Posting Debit

GBB-Stands for Goods Issue/Scrapping/delivery of goods etcPRD- Stands for Price Differences.We will give a detailed document on this so that you can gothrough.

At what level are the FI-MM, FI-SD account determinationsettings?

They are at the chart of accounts level.

What are the additional settings required while maintaining

or creating the GL codes for Inventory accounts?

In the Inventory GL accounts (Balance sheet) you shouldswitch on the Post automatically only tick. It is alsoadvisable to maintain afore said setting for all FI-MMaccounts and FI-SD accounts. This helps in preserving thesanctity of those accounts and prevents from having anydifference between FI and MM, FI and SD.

How do you configure FI-SD account determination?

The FI-SD account determination happens through an accesssequence. The system goes about finding accounts from morespecific criteria to less specific criteria

.Thus first it will access and look for the combination ofCustomer accounts assignment GRP/ Material accountassignment GRP/ Account key. If it does not find accountfor the first combination it will look for Customer account

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assignment GRP and account key combination. Further if itdoes not find accounts for the first 2 criterias then itwill look for Material account assignment GRP/Account key.If it does not find accounts for the all earlier criteriasthen finally it will look for Account key and assign the GL

code.

Thus posting of Sales Invoices into FI are effected on thebasis of a combination of Sales organization, Account type,or Customer and Material Account assignment groups andfollowing are the options available.a. Customer AAG/Material AAG/Account typeb. Material AAG/Account typec. Customer AAG/Account typeFor each of this option you can define a Gl account. Thusthe system uses this g

l account to automatically pass the entries.

What is Valuation and Account assignment in SAP?

This is actually the link between Materials Management andFinance.The valuation in SAP can be at the plant level or thecompany code level. If you define valuation at the plantlevel then you can have different prices for the samematerial in the various plants. If you keep it at the

company code level you can have only price across all theplants. Valuation also involves the Price Control.Eachmaterial is assigned to a material type in MaterialsManagement and every material is valuated either in MovingAverage Price or Standard Price in SAP. These are the twotypes of price control available.

What is Valuation Class?

The Valuation Class in the Accounting 1 View in MaterialMaster is the main link between Material Master and

Finance. This Valuation Class along with the combination ofthe transaction keys (BSX, WRX, GBB and PRD) defined abovedetermines the GL account during posting.

We can group together different materials with similarproperties by valuation class. E.g. Raw material, FinishedGoods, Semi Finished

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We can define the following assignments in customizing:All materials with same material type are assigned to justone valuation class.Different materials with the same material type can beassigned to different valuation classes.

Materials with different material types are assigned to asingle valuation class.

Can we change the valuation class in the material masteronce it is assigned?

Once a material is assigned to a valuation class in thematerial master record, we can change it only if the stocksfor that material are nil. If the stock exists for thatmaterial, then we cannot change the valuation class. Insuch a case, if the stock exists, we have to transfer the

stocks or issue the stocks and make the stock nil for thespecific valuation class. Then only we will be able tochange the valuation class.

If the material is assigned a moving average price in thematerial master and the stock of such material is issued,then does the moving average price change in the materialmaster?

The moving average price in the case of goods issue remainsunchanged. Goods issues are always valuated at the current

moving average price. Consequently, a goods issue reducesthe total quantity and the total value in relation to theprice and the moving price remains unchanged.

If the answer to the above question is Yes, then list thescenario in which the moving average price of the materialin the material master changes when the goods are issued.

The moving average price in the material master changes inthe scenario of Split Valuation. If the material is subjectto split valuation, the material is managed as

Several partial stocks and each partial stock are valuatedseparately.

In split valuation, the material with valuation headerrecord will have v moving average price. This is wherethe individual stocks of a material are managedcumulatively .Here two valuation types are created, one

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valuation type can have v (MAP) and the other valuationtype can have s(standard price).In this case, whenever the goods are issued from therespective valuation types, always the MAP for thevaluation header changes.

What is the accounting entry in the financial books ofaccounts when the goods are received in unrestricted usestock? Also mention the settings to be done in theAutomatic postings in SAP for the specific G/L accounts.

On receipt of the goods in unrestricted-use stock, theInventory account is debited and the GR/IR account getscredited. In the customization, in the automatic postings,the Inventory G/L account is assigned to the Transactionevent key BSX and the GR/IR account is assigned to the

Transaction event key WRX.

If a material has no material code in SAP, can you defaultthe G/L account in Purchase order or it has to be manuallyentered.

If a material has no material code in SAP, we can still,default the G/L account with the help of material groups.We can assign the valuation class to a material group andthen in FI-automatic posting, we can assign the relevantG/L account in the Transaction event key. The assignment of

a valuation class to a material group enables the system todetermine different G/L accounts for the individualmaterial groups

What is the procedure in SAP for Initial stock uploading?Mention the accountingentries also.

Initial stock uploading in SAP from the legacy system isdone with inventory movement type 561.Material valuated at standard price: For a material

valuated at standard price,the initial entry of inventory data is valuated on thebasis of standard price. If you enter an alternative valueat the time of 561, then the system posts the difference tothe price difference account.

Material valuated at moving average price: The initialentry of inventory data

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is valuated as follows : If you enter a value when enteringinitial data, the quantity entered is valuated at thisprice. If you do not enter a value when entering initialdata, then the quantity entered is valuated at the MAPpresent in the material master.

The accounting entries are:Inventory account is debited and Inventory Historicalupload account is credited.Logistics Invoice Verification

Can you assign multiple G/L accounts in the Purchase orderfor the same line item?

Yes, we can assign multiple G/L accounts in the Purchaseorder for the same line item. The costs can be allocated ona % or quantity basis. If the partial goods receipt and

partial invoice receipt has taken place, then the partialinvoice amount can be distributed proportionally, i.e.evenly among the account assigned items of a Purchase orderor the partial invoice amount can be distributed on aprogressive fill-up basis, i.e. the invoiced amount isallocated to the individual account assignment items oneafter the other.

What is Credit memo and subsequent debit in LogisticsInvoice verification?

The term credit memo refers to the credit memo from thevendor. Therefore posting a credit memo always leads to adebit posting on the vendor account. Credit memos are usedif the quantity invoiced is higher than the quantityreceived or if part of the quantity was returned.Accounting entries are : vendor account is debited andGR/IR account is credited.Subsequent debit: If a transaction has already beeninvoiced and additional costs are invoiced later, thensubsequent debit is necessary. In this case you candebit

the material with additional costs, i.e. GR/IR accountdebit and Vendor account credit. When entering theSubsequent debit, if there is no sufficient stock coverage,only the portion for the available stock gets posted to thestock account and Rest is posted to the price differenceaccount.

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What do you mean by Invoice parking, Invoice saving andInvoice confirmation?

Invoice parking: The functionality wherein we can save theLIV(Logistics Invoic

e Verification) document as Parked, so that the documentgets created in SAP, but its status is Parked.The advantage is where in we just want to create thisdocument in database and we are not concerned whether theentries are balanced or not, correct/ incorrect.The accounting document is not created when the invoice isin the Parked mode.We can later on rectify the Parked invoice.Invoice saving: This is also called Invoice processing orInvoice posting. The accounting document gets created whenthe invoice is posted in SAP.

Invoice confirmation: There is no terminology in SAP asInvoice confirmation.

What are planned delivery costs and unplanned deliverycosts? What is the basis on which the apportionment isdone?

Planned delivery costs: are entered at the time of Purchaseorder. At goods receipt, a provision is posted to thefreight or customs clearing account.e.g. FRE is the account key for freight condition, hencethe system can post the freight charges to the relevantfreight revenue account and FR3 is the accountkey for Customs duty, hence the system can post the customsduty to the relevant G/L account. These account keys areassigned to the specific condition types in the MM Pricingschema.

In terms of Invoice verification: If the freight vendor andthe material vendoris the same : then we can choose the option : Goods serviceitems + Planned delivery costs.

If the freight vendor is different from the materialvendor: then for crediting only the delivery costs, we canchoose the option: Planned delivery costs.

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Unplanned delivery costs: are the costs which are notspecified in the Purchase order and are only entered whenyou enter the invoice.Unplanned delivery costs are either uniformly distributedamong the items or posted to a separate G/L account.

For a material subjected to Moving average price, theunplanned delivery costs are posted to the stock account,provided sufficient stock coverage exists.For a material subjected to Standard price, the unplanneddelivery costs are posted to the Price difference account.

What is ranking order in automatic payment program?

Its the priority assigned to each house bank which helps Automatic Payment program

choose the house bank for payment in case there are more than one bank satisfying the

payment program.

If a payment program ends up selecting more than one(say 4) bank for payment, the

ranking of the banks helps it select one bank from the list of (say 4) selected banks

What is SAP APO?

Answer1:

SAP APO stands for Advanced Planner and Optimizer, which is one area of SCM and

application component of My SAP product. Its is designed to provide solutions for

companies in Demand planning, network design, supply network planning, production

planning and global available to promise, transportation and scheduling.

Answer2:

Prior to SCM4.0 (-APO3.1) APO was a system, now from SCM4.0 APO is a function of

SCM not a system as SCM now includes ECH and CM

What are the support tickets given in SAP fico module? please give some

examples.

Support tickets are basically the problems that arise in day to day usage of SAP.

So any sap fico consultant who is resolving the day to day production issues is actually

supporting the tickets.

How is bank reconciliation handled in SAP?

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The following are the steps for BRS:

1. Create Bank Master Data - This can be created through T.Code FI01 or you can also

create the house bank through IMG/FA/Bank accounting/Bank account

2. Define House Bank

3. Set up Bank selection payment program- IMG/FA/ARAP/BT/AUTOIP/PM/Bank

selection for payment prg.

a. setup all co codes for payment transaction - Customer and vendors

b. setup paying co codes for payment transactions

c. setup payment method per country

d. setup payment method per co code for payment transaction

e. setup bank determination for payment transaction

Please go for Cheque management using T code FCHI (IMG/FA/ARAP/BT/OP/Auto

Op/Payment Media/ Check Management) and for void reasons FCHV. You can create

Bank Reconciliation statement by TC FF67 (SAP/AC/Treasury/CashManagement/Incomings/Manual Bank Statement) . Don't forget to keep the opening

Balance as zero. Use FBEA for post process.

All the steps together will lead to (FF67) Bank reconciliation statement.

What is dunning?

Dunning is actually the process by which you bill or invoice a customer for past due

items.

With regards bad Checks for example dunning procedure could follow these steps:

Step 1: Phone call to customer on receipt of bad check at this stage, perform the

journal posting outlined in section on Returned Checks

Step 2: Letter to customer (+10 days)

Step 3: Letter to CO (+7 days)

Step 4: Legal letter to customer (? DD139) (+13 days)

Step 5: Issue DD139 (+10 days)

Step 6: Follow-up on DD139 (dispersing officer) (+45 days)

Step 7: Write-off (after 6 months)Steps 2-6 above will be handled by dunning levels in SAP.

Configuration before dunning can be carried out

1. Defining Dunning Area

2. Define Dunning Keys

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3. Define Dunning Block Reasons

4. Dunning Procedure

Define Dunning Procedure (T. Code FBMP), To set up a Dunning Procedure, the

following must be specified: number of Dunning Levels (1-9) Dunning Texts, Standard

Text can also be included in the Dunning Texts. Dunning Procedure major parameters:

Dunning Interval, Number of Dunning Levels, Grace Period

5. Assign Dunning Procedure to Customer / Vendors Accounts (T. Code XD02)

6. Define Correspondence Types (T. Code OB77)

7. Assign Company Codes to Correspondence company Codes

8. Assign Programs for Correspondence Types (OB78)

9. Dunning Run: Transaction Code: F150

Menu Path: accounting > financial accounting > accounts receivable > periodic

processing > dunning.

Note: Whenever you schedule more than one dunning run a day, the "Identification"

number must change. You may run several dunning runs on the same date but the"Identification" name must be different as well as certain parameters such as the

Dunning Date and Documents Posted up to date

How many types of document splitting procedure?

1) Active Document Splitting2) Passive Document Splitting3) Zero Balancing

What is meaning of residual paymentsFull settlement of customer or vendor account. If the customer is notable to pay the full amount of invoice. Then we can use residualaccount and we can close the customer account.

If there is a balance on GR; what we need to do?GRIR is a clearing account so the account should always be clearedwithout balances it means there is some invoice pending for paymentwe have to post the invoice , if there is no invoice we have to credit tovendor payable liability account later if vendor provides balanceinvoice again debit liability account and credit GRIR account then againdebit GRIR credit vendor account .So that clearing account will beclosed.

Can we post Invoice directly? (If there is No PO; NO GR) How?Invoice (IR) can be posted directly FB60 screen. Which does notgenerate the material document. The posting will directly hit the FI andother parallel ledgers.

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I have set up 2 Banks suppose 1) ICICI and 2) SBI and I want toprint the passbook for both ...where we customize thesesettings (T.code)?Go to F110 t code and click on print out data medium, select thevariant (first need to create house bank with name of respective bank)

Selecting the same by clicking pop up box and click on maintainvariant and maintain the details. After maintaining variant go to FCHIto maintain the check lot and enter the house bank name and chequenumbers serious.

Why we have to give GL no between 6 to 10?No u can use whatever the no u want. Minimum is 1 and maximum nois 10 only.

Why do we use down payment in customers? Normally it isused for vendors right?

Actually we use down payments for customers only. We take advanceamount from customers for mfg of goods. This amount will be takenaccording to the order of the customer. We can use same way forvendors also.

Can two banks assign one house bank?Yes you can assign two banks in one house bank by giving the rankingorder.

After dunning run has carried out the customer has notreceived the dunning note... what all could be the possible

reason...?Fill the dunning field in the customer master. Go to XDO2 changecustomer master go the company data and fill the dunning field ofrelevant customer.

Tell me about Configuration of Group/country chart of account?Group chart of accounts are used for consolidation purpose. For ex: ifin all your company codes maintaining one chart of accounts thenthere is no need to maintain group chart of accounts. If al l yourcompany codes are maintain ing di f ferent chart of accounts then theris a need to maintain group chart of accounts to consol ida te al l yo

company codes chart of accounts . Country chart of accounts . Theseare structured in accordance with legal requi rements of the countryquestion.

What is the difference between field status group and fieldstatus variant?

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Field states group controls the transactions fields. Means whatevercoming in the header and in the line items when we are posting adocument.E.g.: document date, due date, text, tax etc.,

This type of Field states groups are available in field status variant.One FSV(field status variant) contain n-number of FSG(Field statesgroup), FSG is assigned in account master data. That account FSGcontrols that account transactions fields.

What is the mean of group of accounts and examples?Group account means a similar kind of accounts. In chart of accountscontain number of Group accounts.E.g.:-Group description number rangeFAST fixed assets -- 100000-199999

Foreign currency revaluation why it is required?Foreign currency valuation is necessary if vendor accounts containopen items in a foreign currency. The amounts of these open itemswere translated into the local currency at the time they were enteredusing the current exchange rate.

for example: - USD 500 to EUR 600, the loca l currency. The exchangerate is probably dif fe rent at the t ime of clos ing, and open it ems nto be valuat ing again . A program valuates the open i tems using thenew exchange rate and enters the valuat ion di f ference EUR 10 in the

valuated l ine items. It also creates the valuation posting . Where ethere is transaction involving foreign currency, wil l do valuation same to arr ive at gain/ loss with a change in exchange rate

What's the 'free selection' tab in the Automatic payment program(T.code F110) stand for?If you want to exclude any values from the payment run you have todefine the field name in the free selection tab

What are the segments in AP, AR AND GL? AP Segments are AR Segments are

GL Segments are1. General Data Segment 1. General Data Segment 1.Chart of Accounting2. Company Code Segment 2. Company code segment 2.Company code segment3. Purchase Organization Segment 3.sales organization segment3.

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What are the steps in ASAP methodology? Please give meanswer step by step?ASAP METHDOLOGY CONSISTS OF 6 STEPS1. PROJECT PREPERATION.2. BUSINESS BLUE PRINT.

3. REALIZATION.4. FINAL PREPERATION.5. GO LIVE.6. RUN. (This is the new phase of ASAP)Project Preparation consists of AS-IS Process means we have to defineactual business process of the client. And TO-Be process, in this wehave to show the client how SAP is mapped according to them.Business Blue print we have to prepare a document all the SAPconfigurations AS-IS and TO-BE.

Realization Stage doing all configurations.

Final preparation Stage we do testing related to Unit and Integration,giving training to client core team members, and submitting project tothe client.

Go Live stage Production and support to the client

What is assets class?Classifying fixed assets in the organization as per particular countrylegal requirements.

For e.g. Repairs a/c drVehicles a/c dr

to Bank a/cAssets accounting is based on 4 rules:

1. Sub assets master is to be created with reference to the mainassets master.

2. Main assets master is to be created with assets class3. Account determinations is to specified in asset class4. For account determination we assign G/L account based on

nature of transaction.

What is a house bank, bank key, bank ID, and account ID?A house bank represents a branch of a bank or a bank i tse l f . A houbank may consist of more than one account .A bank key is a unique key used by a bank for the t rans fe r of moneyfrom one bank to another onl ine . Each key represents a part icu la r bbranch. General ly , you wil l use SWIFT codes as the bank key.

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A Bank ID is an ID for house banks that the company code uses fortransact ing business.An Account ID represents a parti cu la r account at a parti cu la r brancLet us assume you have three accounts at the ICIC I Bank Vashi ,Mumbai. In this si tuat ion , the house bank will be ICIC I Bank, Vashi

Mumbai. Indiv idual accounts represent an account ID.

What are some examples of standard document types?The standard document types provided in SAP solutions are: SAGeneral entry, DACustomer document, KAVendor document, DZCustomer payment, and KZVendor payment. You can create newdocument types using T-code OBA7.

What is a tolerance group?A tolerance group is a variant that restricts the user from postingcertain transactions that they are not authorized to do. On the other

side, a tolerance limit for customers and vendors determines whatvariations would be allowed while clearing an open item. There arefour types of tolerance group: (1) employee tolerance, (2) G/L accounttolerance limit, (3) customer tolerance limit, and (4) vendor tolerancelimit.

Can you configure cash discount terms?Yes, this is configurable through payment terms. While configuringpayment terms, you will define the cash discount if payment is madewithin the defined date. You can configure payment terms using T-code OBB8.

What additional setup is required if more than one cash journalis maintained in a location?These are the additional steps required if an entity wants to have morethan one cash journal:

Creation of a cash journal G/L account: An additional cash G/L account is required if you want to maintain more than one cash journalin the same currency.

Cash journal setup: This is where you assign the document type of the G/L account to the cash journal.

What configurations steps are required for a special-purposeledger?These are the following steps for a special-purpose ledger:

1. Define table group (T-code GCIN) IMG menu pathFinancialAccounting Special Purpose Ledger Basic Settings Tables Definition Define Table Group

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2. Maintain field movement (T-code GCF2) IMG menu pathFinancialAccounting Special Purpose Ledger Basic Settings Master Data MaintainField Movements

3. Maintain ledger for statutory ledger (T-code GCL2) IMG menu pathFinancial Accounting Special Purpose Ledger Basic Settings Master Data Maintain Ledgers Copy Ledger

4. Assign company code (T-code GCB3) IMG menu pathFinancialAccounting Special Purpose Ledger Basic Settings Master Data Maintain Company Codes Copy Company Code Assignments

5. Assign activities (T-code GCV3) IMG menu pathFinancialAccounting Special Purpose Ledger Basic Settings Master Data

Maintain Activities Display Activity

6. Define versions (T-code GCW1) IMG menu pathFinancialAccounting Special Purpose Ledger Periodic Processing Currency Translation Define Versions

7. Set up exchange rate type (T-code OC47) IMG menu pathFinancialAccounting Special Purpose Ledger Periodic Processing Currency Translation Set Up Exchange Rate Type

8. Create number ranges (T-code GC04) IMG menu pathFinancial

Accounting Special Purpose Ledger Actual Posting NumberRanges Maintain Local Number Ranges

9. Create currency translation document type (T-code GCBX) IMGmenu path Financial Accounting Special Purpose Ledger ActualPosting Maintain Valid Document Type

10. Create posting period variant (T-code GCP1) IMG menu pathFinancial Accounting Special Purpose Ledger Actual Posting Posting Period Maintain Local Posting Period

What is an automatic payment program? What are the steps toconfigure it?An automatic payment program is a program through which you areable to pay and generate checks for all vendors/customers you owe asper payment terms. This can be configured through T-code FBZP.Follow these configuration steps while you customize payment terms:

1. All company codes you are defining parameters for

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a. Company code that processes paymentb. Intercompany payment relationshipc. Cash discount amount and percentaged. Tolerance days for paymentse. Customer and vendor Special G/L transaction to be processed

2. Paying company codea. Minimum amount for incoming and outgoing paymentb. Specification for bills of exchangec. Forms for payment advice and electronic data interchange (EDI)format

3. Payment method per countrya. Types of payment method allowed at country levelb. Master data lookup for payment processingc. Document type to be used for payment

d. Currencies allowed for this payment method

4. Payment method per company codea. Minimum and maximum payment amount at company code level fora payment methodb. Whether or not foreign payment is allowedc. What foreign currencies are allowed for payment?d. Bank and postal code optimization

5. Bank determinationa. Rankingthe order in which payments will be processed

b. AmountAvailable amount for paymentc. AccountG/L account to which posting will be made for paymentd. Expenses and chargesAccount to be posted to if any expenses areincurred while processing paymente. Value dateRelevant for cash management module

What are the steps for configuration of withholding tax?You need to configure the following steps for extended withholding tax:

Define withholding tax typesInvoice posting Define withholding tax typesPayments posting Define withholding tax codes for withholding tax types Define recipient types Assign withholding tax types to company Define accounts for withholding tax Activate the withholding tax code and type to the company code Assign the withholding tax type to the vendor

What journal entries are passed in the system from the time ofgood receipt until payment is made to the vendor?

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In a simple business scenario, you will pass the following accountingentries from the time of goods receipt until payment to vendor.

1. Transaction code MIGOMaterial Account debit

GR/IR Account credit

2. Transaction code MIROGR/IR Account debitVendor Account credit

3. Transaction code F-28Vendor Account debitBank Account credit

What do you test in an automatic payment program? How is it

done and what type of errors are you likely to get?Use T-code F110 to test the payment program.1. Enter data in the Parameters tab.2. Save.3. Edit the proposal and press Enter. The proposal will be completed.4. Display the proposal.5. Any errors will show under Exceptions.If there is an exception, check the logs that the system displays to seewhat you have not done. If everything is correct, the system will showan amount in place of Exceptions. Then you need to run the payment.Remember that you can edit or delete the proposal before the

payment is run.

Any errors may be because you have not defined the payment methodin the vendor master, the vendor may be blocked for posting, or theline item might have blocked the payment.

What settings do you need to adjust before running theautomatic payment program?There are five steps for running the automatic payment program:1. Status In this tab page, the system will provide a message aboutthe current status of the payment program.

2. Parameters this tab page holds important parameters for theautomatic payment program. These are (1) Posting date (2) Documententered up to, (3) Company code, (4) Payment method, (5) Nextpayment date, and (6) Vendor or Customer numbers.

3. Free selection in this tab page, you can enter additionalparameters to search in the automatic payment program.

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4. Additional log with the help of the additional log, you can defineadditional information for the automatic payment program.5. Print out data mediumin this tab page, you enter a variant namefor the house bank. You also define the house bank, account ID, checklot, and print medium.

You have four house banks. The end user has to use the thirdbank (rank order) only for check payments. Can you makepayments through the third house bank? If so, how is itpossible?Customize the priority as 1 for the third house bank. Otherwise, whileposting the invoice, you can specify the house bank from which youintend to make the payment.

What are the steps for linking customers and vendors?When the customer is also a vendor, or the vendor is also a customer,

you need to follow these steps:1. Create the customer master and vendor master records.2. Assign a customer account number in the vendor master record anda vendor account number in the customer master record.3. In the customer master record in the company code data segment,select the Payment Transactions tab, and then select the check boxlabeled Clearing with Vendor.4. In the vendor master record in the company code data segment,select the Payment Transactions tab, and then select the check boxlabeled Clearing with Customer.5. Now when you try to clear using T-codes F-28 or F-53, it will show all

of the transactions related to vendor and customer. You can just paythe balance amount after net off transaction between vendor andcustomer.

How can you clear two general ledgers?You can clear two general ledgers through transaction code F-04(posting with clearing), provided both general accounts are open itemmanaged accounts.

Is it possible to update the reference field in the header of apayment document when the check numbers are generated by

the system? If so, what is the procedure to do it?Using T-code FCHU, fill out the company code, house bank, andaccount ID, and provide the check number and payment documentnumber for which you want to update the check number. In the Targetfield selection for the check number section, select the field for whichyou want to update the check number and execute.

Explain the steps of dunning configuration?

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Use T-code FBMP to define the dunning configuration. In the dunningprocedure, you are defining the following:

Dunning parametersDunning levelsCharges

Minimum amount Dunning textsSPL G/L indicators

Besides the preceding settings, the following optional steps may needto be configured according to the requirements:

Define dunning areas (T-code OB61)Define dunning keys (T-code OB17)Define dunning block reason (T-code OB18)Define dunning groupings (T-code OBAQ)Define interest rates

Why do you use bank type in customer/vendor masterrecords?The bank type is used to identify the bank through which the customeror vendor will carry out the transaction. This field is also importantfrom the point of view of an automatic payment program. For example,Vendor X supplies materials and services. Vendor X also maintains twoseparate bank accounts, one for services and another one formaterials. The vendor requests that payments for services be remittedto his bank account that is meant for services. In this circumstance,you may select the appropriate bank account when posting atransaction.

Suppose in 2005 I have depreciation key AB and in 2006 I havechanged to depreciation key CD. In what ways would mybalances be affected, e.g., accumulated depreciation, assets,etc.?Changes in depreciation are required under varied circumstances, suchas changes in law, etc. A new depreciation key certainly has an effecton the depreciation rate, the accumulated depreciation account, andthe depreciation expenses account. The difference in the depreciationthat was already posted with the old depreciation key and what shouldbe posted with the new depreciation key will be posted in the current

accounting period.

How do you calculate depreciation retroactively from itsacquisition date after changing the depreciation key?After changing the depreciation key in the asset master depreciationarea, you have to execute T-code AFAB (Depreciation Run) and selectthe Repeat Run radio button. In the repeat run, the system posts

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changes to depreciation, as compared to the depreciation amountsfrom the previous run.

What is an asset master? What does it control for sub assetmasters?

An asset master represents the master record and information about aparticular asset. According to the screen layout of the asset master, itcontrols the following for sub assets:

Sub assets master number assignmentAssignment of the depreciation keyDetermination of life of assetsDetermination of assignment of group asset

How do you upload assets in SAP solutions without creatingsingle assets through T-code AS01?These are possible ways of uploading the assets master:

A legacy upload can happen through T-code AS100 (using XL), buthere the group assets (used for tax purposes) future cannot be used. If group assets are required, using the BDC approach ensures that the legacygroup assets are created prior to upload. forcurrent year acquisition, use T-code ABZON.

Is it possible to create an asset class automatically?Yes, you can generate asset classes automatically. There are two waysto do so:(1) Create an asset class with reference to an existing asset class or(2) Generate an asset class through the asset class transaction code

ANKL.In the latter case, executing T-code ANKL gives you predefined steps tofollow and the system will automatically generate an asset class foreach G/L account.

How can you create multiple assets?There are various ways to create multiple assets for the same assets class:

Create assets one by one with transaction code AS01. If the attributes of the assets are the same, you can create similar assets by

entering the appropriate values in the Number of similar assets fields.You can create a BDC session.

Of the preceding methods, if you want to create more than one asset of a similarkind, the second option is the best one. For example, say you have purchased threelaptops and you want to create three assets (all of which are laptops).

Explain various ways to acquire assets and the correspondingaccounting entries.Assets can be acquired in the following ways:1. Outright Purchase: This is the common way for purchase of an asset. In case ofoutright purchase, you can acquire an asset from your supplier.

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2. Assets under Construction: These are assets that clients generate or build withintheir environment, i.e., construction of building, plant, and machinery.3. Intercompany Transfer: Someones company code transfers certain assets toanother company code within a corporate group.

In all these cases accounting entries differ from others.

1. Outright Purchase:Debit Assets $Credit Vendor $

2. Assets Under Construction (AUC):Debit AUC $Credit Vendor $

3. Intercompany Transfer:Debit Assets $Credit Company $

Explain various ways assets may be retired and the relatedaccounting entries.

The following chart provides various ways that assets are retired. To retire an asset,

one of the following options may be considered.

Assets

Retireme

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Sale ofassets

Scrap ofassets

Withrevenue

Withoutrevenue

Withcustomer

Withoutcustomer

With

customer

Without

customer