People who interested in financial statements are :

• Internal audit : Versi Financial statement IN01
• External Audit : Versi Financial statement EX01
• external auditor : Versi Financial Statement AU01

The financial statement version enables you to configure the report format. You determine the following :

• Which items are to be included annd the sequence and hierarchy of these items
• The text describing the items
• The chart of account and the individual account relevant to the report
• The totals to be displayed

You define the financial statements version in two steps :

• Enter it in the directory of financial statement version
• Define hierarchy levels and assigns account

Each versions must have the following “special items”

• Asset
• Lialibilites
• Profit
• Loss
• Profit and Loss result
• Account not assigned
• Notes to financial statement

The net profit or net loss is only determined from account that are assigned to asset and lialibilities items. a financial statement versions consist of a maximum of 20 hierarchy levels.

• Assigns items to each level. The system calculates a total/subtotal for each items, which is then displayed when the program run.
• Assigns text to each item
• Assigns the accounts whose balance and account name are to be listed to the lowest level

Drilldown Reporting

Drilldown reporting is a tool that enables you to analyse G/L account transaction figures and financial statements.

You can also carry out variance analyses such as plan/actual comparisons, fiscal year comparisons and so on.

Drilldown reports make navigation through your data simple. you can move to different details level, or in different object for analysis purposes, or change between a drilldown view and a detailed view.

Drilldown reporting also provides functions for processing lists, such as sorting, conditions (Threshhold values), ranking list and so on.

You can also access SAP graphic, SAPmail, and the excel listviewer from your report.

Pre Closing activities that begin in the old month include :

• Technical : Open new accounting period (FI)
• FI : Enter accrueal / deferral, process recurring entries and bad debt expense in AR, post depreciation and interest expense in asset accounting
• Technical : Close sub ledger (FI) preliminary close of G/L

Closing activities for external purposes include :

• Foreign currency valuations and financial statement adjustments
• Final closing of the old period
• Creating external and internal reports

Year end closing process, are performed in addition to the regular month-end closing process for the final period of the fiscal year.

Pre-closing activities that begin in the old month include :

• Technical : Open the first accounting period of the new fiscal year
• Balance Confirmation for customer / vendor
• Fiscal year change and balance carry forward

Closing activities for external purposes :

• GR/IR clearing account analysis, receivables and payables reclassification, reconciliation of prior year to new year and other adjustment postings
• Final Closing of the old period
• Creating external and internal reports

• The flow data in locbox process
• The component of the process
• The configuration of lockbox program

a Lockbox is a service that bank provide to facilitate the orderly collection and processing of incoming payment.

Instead of sending their payments to your office, customer mails their payments and payment advice notes directly to a central bank location, usually a post office box.

Bank receives the payment and create a data file from the payment advice information and payment amounts. the check are then credited to your bank account.

The lockbox file contains the following information :

• Customer Name
• Customer Number
• Customer Mirc Number
• Check amount
• Invoice Number

The advantage of using lockbox :

• Reducing processing time in your accounting department
• Increasing cash flow
• Cutting processing customer

Customer send their checks and payment advice notes to your lockbo. The lockbox files are transmitted using various methods such as tapes, diskette and direct dial and download.

This chapter explain about :

• The document involving in check processing
• Create Check Manually
• View check information
• Void Check
• Use Void Check Reason code

There are 3 document involved in payment process :

• Vendor Invoices : it can be entered directly into account payable or generated through the PO cycle
• Payment Documents : Record The payment of the invoice and clear the open invoice
• Check : Preprinted checks, check number is generated by SAP system

Checks

You can only print check in the SAP system if the system contains a payable, such as an invoice

the payment process creates a payment document that records the payment of the payable and clean the open invoice.

The payment Document and check and created in separate process. when the checks is created, the check number, bank information, and the check recipient are printed on both the payment document and the open invoice.

If error made, user have to decide, whether to reprint or void the check or whether to void and reverse the check and the payment document.

Several Methods to create payment document and check information :

• Payment Document
  • Entered Manually
  • Automatic Payment Program
• Post and Reprint
  • The User Manually selects the invoices for payment
  • You use this functions to pay specific vendor or invoices
• Post
  • You use this function to pay a vendor or a specific invoices using pre printed checks that are filled out manually or with type writer

Those following information entered on the payment document and the invoice when a check is created :

• Bank Details
  • House Bank and Bank Key
  • Account ID and Number
  • Bank Name and City
• Check Recipient
  • Name
  • City
  • Country
  • Region
• Check Information
  • Check Number
  • Payment Date
  • Currency and amount paid
  • Cash Discount amount
  • encashment Date

Voiding Check and Reversing Payment

Check can be voided before the print run if they are :

• Accidentally damaged
• Stolen
• Destroyed

Check can be voided after the print run if they are :

• Not required because the cash payment is made instead
• Torn during printing
• used for test print

in each case, you have to decide whether the payment document need to be reversed. the system allows you to :

• Reverse The check
• Reverse The check then the payment document separately
• Reverse the check and the payment document simultaneously

Check Register

The check register program is an ABAP program that is shipped as a standard system. this program is a dynamic report that provide the following information :

• All checks
• Outstanding Checks
• Checks Paid
• Void Checks

You can run the dynamic report program by :

• Payment run
• Issue / Creation / Cashing Date

in The SAP business workflow, The four Dimensions :

• Organisational structure (Who)
• Process structure (when, what order)
• Function (what)
• Information (With which data)

are combined to allow business process to be carried out as efficiently as possible.

the process to be displayed as workflow is stored in the system in parameters using a graphic definition tools.

The SAP business workflow :

• is a tool for automation of business process in SAP system and between systems
• is not tied to a particular application and can be adapted to customer requirement
• Works the same way in all applications
• coordinates all integrated tasks
• Support the user actively
• Supports process of your company within SAP systems. it also supports te communication between business processes operated on different system
• Provides the end user with all infomation required to perform the next step

Workflow Management Architecture

in short, workflow means getting the right work to the right employee at the right time.

The SAP business workflow is structured in three layers :

• The right Work : whatever you wish to perform during the workflow, it must be implemented in the business object repository as a method of a business object type
• at The Right point of time : The process level describe the business process in a sequence of individual steps. The workflow definition is the total of all steps put together. Workflow builder is the tool used for the maintenance of the process level
• to The Right Processor : The organisational level establishes a link to the organisational strucure.

a Document number is assigned by means of the document type with the “park Document” function. With “hold document”, the user assigns a designation.

One workflow variant can be used for several company code.

it is possible to create multilevel workflow sequences

Individual task can usually be assigned several possible processor

• a business transaction can create one or more document
• Document in SAP include document header and 2 – 999 line items
• a Document remains a complete unit in the R/3 system until archieved
• SAP records at least one document for every business transaction and each document receives a unique document number
• every document, uniquely identified by following field :
  • Company Code
  • Document Number
  • Fiscal Year
• Two important control keys for document are :
  • Document Type (for doc header)
  • Posting Keys (for line items)
• Document type controls the document header and is used to classify the business transaction
• Most Important control functions of document type are :
  • Number Range for Document Numbers
  • Account types permitted for postings
• Document Type defined at client level and valid for all company code. it controls the following :
  • Which account to be posted
  • Number Range
  • Field status for document header text and reference
  • Whether invoices are posted with net procedure
• if no reversal document type is specified, the reversal document has the same document type as original document
• You specify a number range for each document type. However you can copy the intervals of document number ranges from one company code t another or copy intervals from one fiscal year to another
• Document number can be internal or eksternal
• The internal range can be year specific or year independent
• external number range maybe alphanumneric

Posting Keys and Field Status Group

posting keys defined at client level and must important control functio for a posting key are :

• Determine which account type can be posted
• Side of account (debit or credit)
• Field status of additional details or layout of entry screen
• Specifies whether the line item is connected to payment transaction or not

Standard posting keys for cutomer/vendor invoices are :

• Debit : 01 (Customer) , 4 (Vendor)
• Credit : 50 (Customer), 31 (Vendor)

Standard posting keys for G/L account postings :

• Debit : 40
• Credit : 50

Subledger dont have field status group and therefore a lot of posting key are used.

Field status of document fields influenced by field status group and posting key and is determined by three factors :

• Account Type (S,K,D)
• Field status of posting keys
• field status of account

as a general rule, the account specific field status for G/L account is customized and for customer / vendor account posting key specific field is customized.

Field status group control the field display during document entry

for each group of G/L account, you have to define the status of every document entry field (Required, optional, hidden)

You assign field status group to respective G/L account in the G/L account master record. each G/L account has a field status group.

if a document is posted to the subedger account, the field status group of reconciliation account is used.

Posting Periods

posting periods defined in the fiscal year variant

system usually propose the current date as posting date

To prevent document from being posted to an incorrect posting period, you can close certain posting period

You open a posting period by entering a range in posting period variant that encompasses this period. you can have as many periods open as desired

as many periods as required can be open simultaneously. However, only two periods intervals can be open at the same time during closing.

Posting Authorization

The maximum amount are defined per company code in tolerance group. here the processing of payment differences is controlled

in tolerance group, you can enter upper limits for the following :

• Total amount per document
• Amount per customer/vendor item
• Cash Discount which a user in a tolerance group can grant

When setting limits, the currency used is local currency of company code.

you can create as many tolerance group as you like

a tolerance group can be assigned to one or more company code

if User not assigned to any tolerance group, then default tolerance group valid for them.

Name three document used in payment process :

• Vendor Invoice
• Payment Document
• Checks

What Methods you can create a checks ?

• Manual Checks
• Automatic Payment Program

You can void the check without reversing document (TRUE)

You can void a check and reverse the payment document at the same time (TRUE)

You can void a check and reverse the payment document and vendor invoice all at the same time (FALSE). Reversing vendor invoice is a separate transactions from voiding the checks and reversing the document.

• Holding Document
• Parking Document

Hold Document:  It is for short term and is used when tranaction Dr or Cr is uncertained and generally its is used for external purpose.  eg: Advance from potential customer

Parking Document: Its is for longer period generally used for internal purpose.  eg: Advance made for employes.

Parking documents is used when we need to get any clarification regarding some account

Hold Document

With hold document, data which has been entered can be saved temporarily in order to continue the entries at a later time. Document held by the system do not have tobe complete. No Account balances are updated and the data of the document is not available for evaluation. No document number is assigned.

Holding Document :

• No Document number assignment
• Free Assignment of the designation
• No Update of the transaction figures
• Not Taken into account for evaluation

Held document can be completed and posted or deleted at a point of time.

Parking Document

There are several reasons you might want to park a document:

• Some organizations use this as a security/separation of duties control: an accountant might create the entry and park it, does not have authorization to post, so a manager reviews the entry and posts it later
• The entry may be long and you are interrupted and need to come back to it later. Better to park an entry and come back to it than to leave it sitting open on your desktop
• You may build up a entry throughout the month, entering the pieces as you go along and parking it at month-end. I wouldn’t recommend this, but it is done.

you can enter incomplete document in the SAP document in the SAP system without having to check the entries extensively by parking document.

When parking document, the system assign a document number via the document type in the same way as with “normal” financial accounting posting.

Parking Document :

• Transaction Figures are not updated
• Document Number are assigned (internal number assignment) or the assignment is checked (external number assignment) depending on the document type and number area
• Some document can be included in evaluation / reports

substitution are not supported by the document parking feature. substitution can only be made with posting transaction after turning parked document into accounting documents.

The park document function are more effective than hold document function. additional park document function :

• Displaying authorization, approval
• principle of dual control
• responsibilities
• acceleration of work procedure

Parking Document & Processing Park Document

You can alternatively check parked document for their incomplete resg, such as :

• Whether document balance is zero
• Whether all mandatory fields (posting key, account number) are filled out
• Account assignment templates can be used, but not reference document

Cross company code transactions can also be parked. only one parked document is created in the initial company code for such transactions.

When Parking Document :

• No transaction figures, asset value, control total are updated
• No automatic posting are created
• the balance is not checked
• Its displayed in the document overview of parked document

Ways of using document parking :

• Customer account (Invoice and credit memo)
• Vendor Account (invoice and credit memo)
• G/L account (G/L account postings)

Further process of parked documents are :

• Edit Parked Document
• Post Parked Document
• Parked Document Should only be deleted in exceptions

Editing Parked Document

a number of header and item fields can be edited including amounts.

The currency, The document type/number and the company code cannot be changed.

Dates, amount, account assignment objects can be changed. Changes can be made as often as required. multiple changes are possible.

Changes can be made to individual document, individual items, to several document by means of lists or with the line item list.

Changed to parked document can be displayed either before or after posting item.

Posting Parked Document

You can post parked document as standard transaction individually or via a selection list

if you post several document via a selection list, the system subsequently issues a list, indicating whether the document have been posted succesfully.

What happen when a parked document is turne into a “proper” document :

• The usual inspections are performed when posting documents
• a Normal complete financial accounting is created
• History is documented
• The document number remains the same
• The transaction figures are updated
• The parked document are deleted after creating a normal FI document

Workflow

Workflow are usually initiated by a triggering event. Event are used to display in the changes in status of objects within the system. like the method, they are defined in the objects repository for each object type. events are initiated in the respective applications.

2. a Plant can be assigned to more than one company code (false). a plant can be assigned to only one company code

3. The costumer / vendor account can be maintained centrally or decentrally

4. A complete vendor account consist of following parts :

• Purchasing Organisation segment
• General Data
• Company Code Segment

5. Bussines area are not directly assigned to company code.

6. The most important control functions of the document type :

• Number Range for document number
• Account types for permitted postings

7. Standard posting key for G/L Account :

• Debit, Posting Key 40
• Credit, Posting Key 50

8. Every company code may define its own document number range. The document number uniquely identifies each document in a company code within the fiscal year. Therefore, Document number range are defined dependent on the company code.

9. at The beginning of a new fiscal year, The system always starts The document number assignment again at the start of number range (False).

• The system only restart numbering at the beginning of new year if the document number range is defined per fiscal year

10. You maintain a costumer / vendor master record centrally if you create financial segment at the same time as the sales order management / purchasing management segment.

11. You can carry out cross company code controlling if each company code uses the same operational chart of account

12. G/L account that are managed in local currency can be posted in any currency

13. G/L Account that are managed in a foreign currency can only be posted to in this currency  

Document with open items cannot be archived and stay in the system until all open items are cleared. SAP provide two basic transactions for clearing :

• Post with clearing
• clearing an account

Clearing transactions is always create clearing document.

when you use “posting with clearing”  function, enter the amount and then select the open items that are to be cleared.

• if the total amount of selected open items equals the amount of the clearing document, the system clears the open items by creating one or more clearing items.
• if the total amount of selected open items does not equal the amount of the clearing document, the system allows you to post the difference.

Posting with clearing can be carried out for several accounts, account types and for any currency simultaneously. you can carry out the “posting with clearing” transaction manually or automatically using the automatic payment program.

Account Clearing

using the account clearing function, choose those open items from an account that balance to zero. the system marked them as cleared and creates a clearing document. The clearing document number and clearing date is entered in the cleared items. The clearing date can be current date or date that the user determine.

The account clearing function works for any account managed with open items in the general ledger and subledgers. The account clearing transaction may be performed manually or automatically by using automatic clearing program.

Step in clearing program :

• group items for each account
• if balance is zero, marked the items for clearing

Prerequisite for clearing :

• User criteria must be defined in customizing
• accounts to be cleared must be defined for automatic clearing

Items that are not cleared :

• Noted items
• statistical postings, bill of exchange postings
• items with holding tax entries

The program groups items from an account together where they have the same entries in the following fields :

• Reconciliation account number
• currency
• Special G/L indicator
• Five freely defined criteria from document header or line items

The clearing number is derived from the document number of the clearing document

you will also able to do a partial clearing when you are unable to match open items exactly. in this case, the balance amount not cleared is posted as a new open item.

You may also configure clearing tolerance and also define rules on how to tackle the situation where the net amount after clearing is not zero (such as writing off, posting the difference).

• Account balance interest calculation
• Interest on arrears

account balance interest calculation is applied to the entire balance of G/L or costumer account using a specific interest rate over a specified period of time.

Interest on arrears is applied to individual items in account receivable or account payable. a certain interest rate is applied to those items that are still open or unpaid at a specific date.

Configuring Interest Calculation

Configuring interest calculation program involving defining setting in five areas :

• Interest calculation Indicator. Which contains two information : interest ID and interest calculation type
• General Term : explaining out how each interest calculation indicators work
• Time Based Term : Set validity dates and relationship to interest rate
• Account Determination : establish the account to which the result of the interest calculation are posted

Interest calculation type specifies whether it used for account balance interest calculation or item interest calculation. Every account for which SAP will calculate interest, must have an interest calculation indicator in its master records.

The system requires a separate interest calculation indicator for each combination of interest calculation frequency, calender type, currency, interest rate, So On.