Check List for FI Year End Closing

1 Execute Report for InterCompany Activity & Journal Entries

2 Open posting period for next yr

3 Run Business Area's Assignment report.

4 Review list of recurring journal entries

5 Execute Recurring Entries for A/R, A/P, G/L

6 Process Parked A/R, A/P, G/L accounting documents

7 Final Cutoff for the Maintenance of Fixed Asset- Add Transfer and Retire

8 Run Depreciation in Test Run and post

9 Verify Display Log for Depreciation Test Run

10 Capitalize AUC Assets if needed

11 Enter Payroll Data to SAP

12 Verify Depreciation Balances with GL balances

13 Post Depreciation

14 Execute Asset History Report, and retire assets if needed

15 Adjust specific depreciation areas if necessary

16 Reconcile AM subledger with GL

17 Check Bank Data

18 Review AR Open Items

19 Review AP Open Items

20 Execute Pending Invoices

21 Clear Open Item for GRIR, freight

22 Reconciliation of Financial Documents and transactional figures

23 Open new CO Posting Period

24 Compare current (cost estimates) with last current price (Moving Avg)

25 Update current cost price to material master price field.

26 Process Freight charges, Match SD freight to actual

27 Review Internal Order Postings

28 Settle All Orders

29 Verify All Post Goods Issue have been Invoiced (Billing Due List)

30 Review SD Billng Doc from prior mth that have not yet been released to accounting

31 Reconciliation of MM movements in Transit Intra-SAP to NonSAP

32 Reconcile PI Inventory with SAP

33 Perform Manual Adjustment if needed

34 Verify balance of the GR/IR account

35 Post Accruals and Deferrals

36 Clearing of Cancelled Documents

37 Check Profitability Segment Adjustment

38 Aging Report-Reconcile GL balances with subledger balances AP

39 Check the check run numbers

40 Bank reconciliation Data

41 Enter Tax Journal Entry

42 Reconcile GL balances with subledger balances AR/MM/AP

43 Display Balance Sheet Adjustments

44 Post Balance Sheet Adjustments

45 Post Foreign Currency Valuation (foreign exchange)

46 Check generic cost centers for posting with wrong accounts

47 Correct wrong postings on generic cost centers

48 Check Validation dates for Cost Centers, Cost Elements, CO area

49 Check COGI--for both month end and year end

50 Doubtful receiviables

51 Verify In-transist Inventory

52 Reconcile PA to G/L

53 Post Cost Centre Assessments and Distributions

54 Run CO-FI Reconciliation to balance

55 Run BW reports P&L and Balance Sheet

56 Maintain CO yr variant

57 Fiscal Yr Balance carryforward AP/AR/AM

58 Fiscal Yr Balance carryforward CO

59 Fiscal Yr balance carryforward FI

60 Fiscal Yr balance carryforward PCA

61 Set Document number ranges - FI - new year

62 Set Document number ranges AP/AR - new year

63 Generate Financial statement Reports

64 Change Fiscal Year For Assets

65 Year end Closing-- Asset Accounting--final for year end

66 Close CO Posting Period

67 Close Prior A/R Posting Period

68 Close Prior A/P Posting Period

69 Close Prior MM Posting Period

70 Reverse accruals and deferrals for the new month

71 Reconciliation of Financial Documents from old fiscal year and new fiscal year

72 Load Balances, Budget Data for Cost centers, sales

73 Update Retained Earning Account , balance carry fwd

Is There an Automatic Program for MMPV

The client I am working with has an outdated training client. The current posting period right now is November 2004. I have two questions:

1. Does anyone know of a shortcut to get the current posting period updated versus opening each month from Nov. '04 until today.

2. Is there an automatic program that can be set up to change to current period without having to go in manually every month to initiate MMPV.

In IMG, you can go to Logistics - General => Material Master => Basic Settings => Maintain Company Codes for Materials Management. You can then enter the periods that you need to have open.

As far as running something monthly, if you are working only in one general region of the world, you can run program RMMMPERI from SE38 at 00:01:00 on day 1 of each period. You'll need to create a selection variant with a variable to tell it which period to use.

We run into problems with MMPV/RMMMPERI, and have to actually manually schedule it each month. I run it three times - one to open the periods for our Asian plants (at 09:00:00 my time, on the last day of my month), one to open periods for our European plants (at 16:00:00 my time, on the last day of my month), and one to open periods for our US plants (at 00:01:00 my time, on the first day of my month).

I've not been able to schedule recurring jobs for the Asian and European plants, because I can't figure out a way to set up a recurrence for the last day of the month. I can do it on day 1, or day 28, or something specific like that, but since the last day of the month can fall on day 28, 30, or 31, I'm not able to do that.

Variants in OB52 to use Multiple Time Zones

Is there anyway to configure the posting periods variants in OB52 to use multiple time zones? For example, if the US is one company code can multiple variants be setup for the different time zones?

In T-code OBBO you can create, if you are need, for every company code a posting period variant which must assign to company code - T-code OBBP. With OB52 you can determine for every posting period variant a posting period for every account type (A,S,D,K,M and +).

Important: In FI it is possibile only two period ranges have to be open at the same time, during of the closing procedure, one for posting period of fiscal year (1-12) and one for special posting period (13-16).

If my answer it is not sufficient, please give me a example for what you want to say with "to use multiple time zones".

The Last column in OB52 Screen for authorisation group.
I think this field can be effectively to restrict the posting by different users situated in different time zones. Of course if a user is travelling from one time zone to other, this option may not work unless authorisation group in his user Id is changed.

Variants in OB52 to use Multiple Time Zones

Is there anyway to configure the posting periods variants in OB52 to use multiple time zones? For example, if the US is one company code can multiple variants be setup for the different time zones?

In T-code OBBO you can create, if you are need, for every company code a posting period variant which must assign to company code - T-code OBBP. With OB52 you can determine for every posting period variant a posting period for every account type (A,S,D,K,M and +).

Important: In FI it is possibile only two period ranges have to be open at the same time, during of the closing procedure, one for posting period of fiscal year (1-12) and one for special posting period (13-16).

If my answer it is not sufficient, please give me a example for what you want to say with "to use multiple time zones".

The Last column in OB52 Screen for authorisation group.
I think this field can be effectively to restrict the posting by different users situated in different time zones. Of course if a user is travelling from one time zone to other, this option may not work unless authorisation group in his user Id is changed.

Variants in OB52 to use Multiple Time Zones

Is there anyway to configure the posting periods variants in OB52 to use multiple time zones? For example, if the US is one company code can multiple variants be setup for the different time zones?

In T-code OBBO you can create, if you are need, for every company code a posting period variant which must assign to company code - T-code OBBP. With OB52 you can determine for every posting period variant a posting period for every account type (A,S,D,K,M and +).

Important: In FI it is possibile only two period ranges have to be open at the same time, during of the closing procedure, one for posting period of fiscal year (1-12) and one for special posting period (13-16).

If my answer it is not sufficient, please give me a example for what you want to say with "to use multiple time zones".

The Last column in OB52 Screen for authorisation group.
I think this field can be effectively to restrict the posting by different users situated in different time zones. Of course if a user is travelling from one time zone to other, this option may not work unless authorisation group in his user Id is changed.

Allowed OB52 based on company code

If you have several company codes and want your users only to be able to open and close periods
(transaction OB52) belonging to their posting period variant (=company code).

First you configure the Posting Variant :-

1) FI- FI Global Settings - Document - Posting Periods - Define Variants for Posting Periods

2) FI- FI Global Settings - Document - Posting Periods - Assign Variants to Company Code

Second Step:-

Goto SE11 copy the view V_T001B to ZV_T001B_000X (000X indicate the Posting Variant)

In Change mode, tabstrips Selection Conditions Insert line 2 with

Table	Field Name	Operator	ComparativeValue	AND/OR
T001B	BUKRS	EQ	'000X'	AND

Save your entries

Third Step :-

Goto SE54, Options Generated Objects -> Create

Authorizations Group	FC31
Function Group	Z00F0
Maintenance Type	One Type
Overview Screen	65
Single Screen	0

Final Step :-

Goto SE93, Create a new transaction code ZOB52_000X

Start object - Transaction with parameters (parameter transaction)

Transaction SM30, Tick Skip initial screen

Name of screen field	Value
VIEWNAME	ZV_T001B_000X
UPDATE	X

Save your entries.

Now, test your new transaction code ZOB52_000X which will only display the
Posting Variant that you have define in your table view.

Banking Transaction Financial Accounting Entries

Bank Fixed Deposits

28) HZL has a practice of converting any amount above Rs. 1 crore in its Main bank account, to a fixed deposit subject to a minimum of Rs. 1.01 crores. The FDR number can be filled in one of the fields available in the accounting document.

Cheque Management / Cheque Printing Cum Advice

29) The function of cheque management will enable printing of cheque through SAP. Cheque series will be defined for a combination of a Company code and Bank Account. Cheque numbering will be sequential order.

30) Cheque series for automatic payment has to be in sequential order. Cheque printing facility will be available for the bank account.

Cash Management / Liquidity Analysis

31) The day-to-day treasury process in a company includes a number of transactions. This includes determining the current liquidity using bank account balances (cash position), determining open receivables and liabilities (liquidity forecast), manually entering planned cash flows (payment advice notes), through to clearing bank accounts, that is, collecting multiple bank account balances on one target account.

32) The main objective is to ensure liquidity for all due payment obligations. It is also important to control and monitor effectively the incoming and outgoing cash flows.

33) This section shows you the overall liquidity status of your company by displaying together the cash position and the liquidity forecast. The cash position is used in Cash Management to show the value-date-dependent bank accounts and bank clearing accounts, as well as the planned cash flows (payment advice notes). The liquidity forecast comprises the incoming and outgoing cash flows, as well as the planned items on the sub-ledger accounts.

Banking Transaction Financial Accounting Entries

Direct Debit In Bank

26) Direct debit instructions will be given to the bank for example, LC payments or certain bank charges are directly debited in the Bank Statement. In this case accounting entry is passed only after the entry is passed in the bank statement.

Vendor / Expense Account Debit

Bank clearing account Credit

Direct Credit In Bank

27) Customer receipts are sometimes directly credited in Bank. E.g. export receipts. In this scenario accounting entry is passed only at the time of bank statement entry. The following accounting entry is passed

Bank clearing account Debit
Customer account Credit

Main Bank A/c Debit

Bank Clearing A/c Credit

>>>Next Step>>>

Banking Transaction Financial Accounting Entries

Cheque Received From Customer

20) Accounting entry at the time of cheque deposit entry

Bank Cheque deposit account Debit
Customer Credit

21) Accounting entry after cheque has been cleared in the Bank statement Main Bank account
Debit Bank

Cheque deposit account Credit

22) The clearing criteria for updating the bank main account and bank sub account will be amount and document number which will be captured in the allocation field of the bank sub account. The items, which have not been cleared in the bank statement, will remain open in the bank sub account and will form part of the bank reconciliation statement.

Cheque Issued To Vendors

23) Accounting entry at the time of cheque issue

Vendor account Debit
Bank cheque payment account Credit

24) Accounting entry after cheque has been presented in the Bank

Bank cheque payment account Debit
Main Bank account Credit

25) The clearing criteria used for updating vendor account and Bank cheque payment account will be amount and cheque number. The cheques presented to the bank and are cleared are transferred to the bank main account. The remaining cheque issued will form part of the bank reconciliation statement.

>>> Next Step>>>

Banking Transaction Financial Accounting Entries

Bank Reconciliation

16) The Bank reconciliation process is based on the entries passed through the Bank sub account and main account. The process is dependent on the Bank Statement received from the Bank that will be entered into SAP. Accounting rules are to be defined for each transaction type and posting rule for posting accounting entries as per bank statement. Bank statements to be uploaded into SAP.

17) Bank Main account balance is the actual balance as per the bank statement whereas the Bank sub accounts denote the reconciliation items. These sub accounts show those entries, which will flow from the sub account which are not cleared in the bank statement.

18) Adding or subtracting the Bank sub accounts will help in preparing the Bank reconciliation statement.

19) The following scenarios would explain the reconciliation process:

- Cheque received from customer

- Cheque issued to vendors

- Cheque received from Other than Customers

- Direct Debits in Bank Statement

- Direct Credits in Bank Statement

- Fund Transfer between Bank Accounts

>>>Next Step>>>

Banking Transaction Financial Accounting Entries

Settlement Of Tour Advances Domestic/Foreign

1) Settlement of advance will be done by the Accounts Department based on the Travel Expense Statement submitted by the employee, which is approved by the Concerned Department Head.

2) Expenses Account DR
Cash/Bank Account DR (if, refund)
Employee Advance Account CR
Cash/Bank Sub ledger Account CR (if, payable)

3) Banking Operations - Maintenance Of Bank Master

4) A House Bank is a combination of a Bank and a Branch. Account id is the account number. A house bank can have multiple account IDs.. There could be a main account as also payable account, which will be defined as separate account ids. General Ledger accounts have to be created for each combination of a house bank and account ID. The bank master details are to be provided by HZL.

5) General Ledger accounts have to be created for each account ID in the house bank. Bank Account Master data will be maintained by the Finance Department centrally.

6) Each house bank and account ID combination shall have one main general ledger account and several sub accounts mainly based on broad transaction types. These sub accounts are necessary to facilitate automatic bank reconciliation process in R/3 system.

Bank Accounting

7) The accounting entries will be generated automatically according to the posting rules attached to the Transaction type. The following accounting entry is passed by the system in respect of cheque deposit on account of collection from domestic customers.

Bank cheque deposit account Debit
Customer account Credit

8) In this case, a bank sub account is selected based on the transaction code entered by the user. The customer account is cleared i.e. invoice is cleared against the receipt. In respect of any other deposits, the relevant accounts to be credited will depend on the nature of transaction.

9) Payment against bills for collection. Based on the bank advices falling due on a particular day one payment advice is made debiting the vendors and crediting bank.

Cheque Deposit - Customer Receipts

10) All cheques received from customers shall be accounted at the point of receipt. The entry posted shall be

Bank Sub account Dr
Customer Account Cr

Cheque Deposit - Other Than Customer Receipts

11) All other receipts will be accounted through the Incoming Payment Transaction of the Accounts Receivables module.

Cheque Bouncing – Other Than Customer Receipts

12) Based on the information of cheque bounced from the Bank, the accounts Department will pass accounting entries for the cheque that have been bounced. The procedure to handle bouncing of a cheque has been discussed under the following

13) Reset the clearing document – If the document has been cleared i.e. an open outstanding item has been cleared against an incoming receipt, then the clearing document has to be reset to its original status of open item. This process is known as reset of cleared document.

14) Reverse the entry passed for cheque deposited earlier – Once the document has been reset it will be reversed. The following accounting entry will be passed.

FI Customer DR
Bank cheque deposit account CR

15) In case of cheques being damaged while printing, the concerned cheques no. has to be voided and the payment will be rerun.

>>>Next Step>>>

Reversal Entry In Accounting

Why do we pass reversal enteries?

At times some incorrect documents might have been entered in the systems.

If you have entered an incorrect document, you can reverse it.

Note that R/3 can reverse a document only if the following conditions are met:

- Contains no cleared items

- Contains only vendor, customer, or G/L line items

- Was posted within the FI system

- Contains only valid values, such as business areas, cost centers, and tax codes

Ordinarily, you post a reversing document in the same period you posted the original document. The period of the original document must be open to post a reversing document. If the period is not open, you can overwrite the posting date field with a date in an open period, such as the current period.

Reversal can be done individually - FB08 or Mass F.80.

If the document to be reveresed contain cleared items, then cleared item must be reset before the reversal of document.

Vendor Invoice Verification Accounting Entries

VENDOR INVOICE VERIFICATION

The detail process related to invoice verification is documented in Materials Management Document.

On receipt of vendor bill the following entry will be passed:

GR/IR Account DR
Freight Clearing Account DR
Cenvat Clearing Account DR
Vendor Account CR

Invoice Verification for Foreign Vendor
On receipt of vendor bill the following entry will be passed:

GR/IR Account DR
Vendor Account CR

Invoice Verification for Custom vendor

On receipt of Vendor bill the follo wing entry will be passed:

1) RG 23A/RG 23C Part 2 A/c (CVD) A/c DR
Cenvat Clearing A/c CR

2) G/R I/R A/c DR
Cenvat Clearing A/c DR
Vendor A/c CR

3) Cost of Material A/c DR
Vendor A/c (Customs) CR

Invoice Verification for Freight / Clearing Agent
Cost of Material A/c DR
Vendor A/c (Clearing Agent) CR

Invoice Verification for Octroi Expenses
Cost of Material DR
Vendor A/c (Octroi) CR

TDS (Work Contract Tax) for Service Orders shall be calculated and deducted accordingly.
The following entry will be passed on bill passing:

Expenses Account DR
Vendor Account CR
TDS Account CR

The material shall be returned to the vendor using the
Return to vendor movement type in SAP
Creating a Return PO

These transactions will be processed in the MM module.

The accounting entries will be :

Returns after GRN
GR/IR A/c Dr
Stock A/c Cr

The accounting in respect of debit / credit memos for FI vendors, the process will be similar to that of invoice processing.

The accounting entries will be:

On issue of debit note
Vendor Account DR
Expenses Account CR

In respect of import vendor - capital goods exchange differences are to be accounted manually through a Journal Voucher for capitalization.

Exchange rate differences will be accounted at HO. An example of the accounting entry in this case shall be:

Invoice entry @ 40 INR: 1 USD

Asset / Expense A/c DR 100
Vendor A/c CR 100

Payment Entry @ 41 INR: 1 USD
Vendor A/c DR 100
Bank A/c CR 110
Exchange rate loss Capital A/c DR 10

Asset A/c DR 10
Exchange rate loss Capital A/c CR 10

A new G/L account shall be created for the special G/L transactions.

The accounting entry for making the down payment shall be:
Advance to supplier account Debit
Bank A/c Credit

When the invoice is booked the following entry is passed
GR/IR account Debit
Vendor account Credit
Clearing of Invoice against Down Payment
Vendor A/c Debit
Vendor down payment account Credit

Wherever, TDS is applicable, the TDS will be deducted at the time of down-payment to the vendor.
Down Payment for Capital (tangible) Assets

Down payment to vendors for capital acquisitions is to be reported separately in the Balance Sheet under the head Capital Work in Progress. Hence down payment for capital goods would be tracked through a separate special general ledger indicator.

The procedure to be followed is:

Definition of alternative reconciliation accounts for Accounts Payable for posting down payments made for Capital assets

Clearing the down payment in Accounts Payable with the closing invoice.

A new G/L account shall be created for the special G/L transactions.

The accounting entry for making the down payment shall be:

Vendor Advance for Capital Goods Account Debit
Bank A/c Credit
When the invoice is booked the following entry is passed
Asset A/c / Asset WIP Debit
Vendor A/c Credit
Clearing of Invoice against Down Payment
Vendor A/c Debit
Vendor Advance for Capital Goods Account Credit

The Following are the TDS Rates (to be confirmed with the recent changes) Particulars Tax Rate Surcharge Rate Total

Contractors – 194 C 2% 5% 2.10%

Advertising – 194 C 1% 5% 1.05%

Prof. Fees – 194 J 5% 5% 5.25%

Rent – Others – 194 I 15% 5% 15.75%

Rent – Company – 194 I 20% 5% 21%

Commission – 194H 5% 5% 5.25%

Interest - Others – 194 A 10% 5% 10.50%

Interest – Company – 194 A 20% 5% 21%

Special Concessional Tax

Works Contract Tax

SECURITY DEPOSITS /EARNEST MONEY DEPOSIT RECEIVED FROM VENDORS

Bank A/c DR
Security Deposit Vendor CR

EMD to give the age so as to enable the same to be transferred to unclaimed EMD account.
PAYMENT OF TOUR ADVANCE DOMESTIC TOURS

Employee Advances will be paid by the Accounts Department unit wise based on the requisition or recommendation of the respective departmental head.
Employee Travel Advance A/c DR
Cash / Bank Account CR

Sales and Distribution Accounting Entries

INVOICE GENERATION

Invoices will be generated at the Smelters and stock points. The accounting entries for the sale of goods despatched will flow from the Sales invoice generated in SAP Sales and Distribution module.

The following entries shall be passed

Customer Account Dr
Revenue Cr
Excise Duty Payable Cr
Sales Tax Payable (local or central) Cr

Note:

As mentioned above in the FI document, which is created in the background, the SD invoice number shall be captured. However as per the current accounting procedure the accounting entry passed is as follows :-
Customer Account Dr
Revenue Cr
Excise Duty Billed Cr
Sales Tax Payable (local or central) Cr

Excise duty paid a/c Dr
Excise duty payable a/c Cr

EXPORT SALES

There have been very few export transactions in the past. SAP system will be designed to handle export business. Exports are mainly from the mines and will be handled at the mines, however the documentation part will be taken care at the Head Office. The accounting entry is:
Customer Account Dr
Revenue (Exports) Cr

The realisation of export sales will be directly credited to the bank. The accounting entries will be as follow:
Bank Dr
Customer Cr
Exchange Fluctuation Dr/ Cr

The accounting entries will be:
Rebates/Discounts Dr
Customer Cr

DEBIT MEMOS

Debit Memos shall be issued in case of price difference, sale tax difference and interest on usance period and overdue payments.

The accounting entries for two possible scenarios are as follows:
Price Undercharged:
Customer Account Dr.
Revenue Cr.
Sales tax payable Cr.
Sales tax undercharged
Customer Account Dr.
Sales tax adjustment Cr.

Interest on delayed payments/usance period and other charges
Customer Account Dr.
Interest Others Cr.

In case of HZL a complete retirement or a partial retirement of asset is done. The system uses the asset retirement date to determine the amount to be charged off for each depreciation area. The existing accounting policy is to provide depreciation for the full quarter in which the asset is sold/discarded, recommended that the depreciation be provided from the date of acquisition on prorata basis .

Accounting entry for sale of Asset to customers:

Customer Account Dr
Asset Sale Cr
Accumulated Depreciation Dr
Loss on Sale (if applicable) Dr
Asset Sale account Dr
Asset account Cr
Profit on sale (if applicable) Cr

Note:

In case of any Sales Tax /Excise duty applicable for this transaction, SAP will calculate the Sales Tax/Excise Duty based on the Tax Code selected the entry is posted to the GL Account (Sales Tax Payable)

Accounting entry for sale without a customer:

Accumulated Depreciation Dr
Loss on Sale (if applicable) Dr
Asset Sale account Dr
Asset account Cr
Profit on sale (if applicable) Cr

Accounting entry for scrap
Accumulated Depreciation Dr
Loss on Sale of Assets Dr
Asset account Cr

SALE OF SCRAP

The sale of scrap (non-stock) shall be mapped as a direct manual FI entry. The customer will be created as a FI customer. No Logistics module will be involved in the process.

A FI Invoice will be prepared for the sale of scrap with the following entries:
Customer Dr
Sale of Scrap Cr
Excise Duty Payable Cr

ADVANCES FROM CUSTOMERS

Advances are received from the customers against delivery. These advances will be recorded in a special general ledger account. The accounting entry for the same will be:
Bank Account Dr
Advance Customer Payments Cr

These advances will be later on adjusted against the invoices raised on the customers. Advances can be adjusted against more than one invoice at the time of clearing of the invoices against advances.

Adjustment of Advances
Customer Account Cr
Advance Customer Payments Dr

A financial document would be created for each Bank Guarantee received and this document number will be referred to in the Sales Order which would then monitor the value and the validity of the of the Bank Guarantee instrument wise while doing the billing.The letter of credit /Bank guarantee given will be recorded as a noted item.

Accounting Entry for Goods receipt
Stock/Inventory account Dr
GR/IR account Cr
Freight clearing account Cr

Accounting Entry on invoice verification of supplier
GR/IR Dr
Vendor account Cr

Accounting Entry on invoice verification of freight vendor
Freight clearing account Dr
Freight Vendor account Cr

GOODS RECEIPT

Based on the Purchase order and the Quantity actually received Goods Receipts (GR) will be done. Based on the GR done the following accounting entry will be passed in the Financial Accounts

RM/PM Stock Account Dr
GR/IR Account Cr
Freight Clearing Account Cr

EXCISE INVOICE VERIFICATION

On receipt of the excise invoice cum gate pass the following entry will be passed
RG 23 A / RG 23 C Part 2 Account Dr
Cenvat Clearing Account Cr

Inventory Accounting Entries

All the Inventory transactions will look for the valuation class and the corresponding G.L. Accounts and post
the values in the G.L accounts.

For Example: During Goods Receipt

Stock Account - Dr
G/R I/R Account - Cr
Freight Clearing account - Cr
Other expenses payable - Cr

During Invoice Verification

G/R I/R Account - Dr
Vendor - Cr

When the Goods are issued to the Production Order the following transactions takes place:

Consumption of Raw Materials - Dr
Stock A/c - Cr

When the Goods are received from the Production Order the following transactions takes place:

Inventory A/c - Dr
Cost of Goods Produced - Cr
Price difference - Dr/Cr
(depending on the difference between standard cost and actual cost)

When the Goods are dispatched to customer through delivery the following transactions takes place:

Cost of Goods Sold - Dr
Inventory A/c - Cr

When the Goods are issued to a Cost Center or charged off against expenses the following transactions takes place:

Repairs and Maintenance - Dr
Inventory A/c - Cr

When the Goods are stock transferred from one plant to another, the following transactions takes place:

Stock A/c - Dr (Receiving location)
Stock A/c - Cr (Sending location)
Price difference - Dr/Cr
(due to any difference between the standard costs between the two locations)

When the stocks are revalued, the following transactions takes place:

Stock A/c - Dr/Cr
Inventory Revaluation A/c - Cr / Dr

When the Work in Progress is calculated the following transaction takes place:

Work in Progress A/c - Dr
Change WIP A/c - Cr

Physical verification /shortages and excesses : Shortages/excesses on authorizations shall be adjusted using the physical inventory count transaction.

FI/CO Interview Questions

What is APC?

APC stands for Acquisition and Production costs. Acquisition means any asset which you may acquire/ purchase externally. It includes invoice price and other related exp. Associated with it like customs, octroi, freight which you add and arrive at total cost of acquisition for capitalisation of the asset.For ex Say a computer. The total cost which you incurr for the acquisition of the computer including installation will be your APC

Production cost means any asset which is created internally within the organisation. This is normally created by means of AUC and you go on adding cost to the AUC as and when you incurr exp. for the same.For ex. say addition to the office building. Therefore APC incudes any external acquisition or internal construction of exp. which needs to be capitalised.

In OADB under 01 deprn area Acquisition & prod Cost tick is activated.

This is umapathy, I have intereview tomorrow, if anybody have taken interview with any company, kindly let me know what the questions they will be asking, how will be the interview. How the questions will be on configuration, implementation side and other questions plz.. share with me.

Pl. prepare yourself on the following broad lines:

Implementation exp.:

Brief about the project you did: w.r.t. the main activity of the client, How many plants they had, What modules were implemented, Who were the implementers, What’s the implementation team size, How many were in your module team, What’s your role in the project with respect to the activities you partook in the project, The Enterprise Structure with regard to the no. of Company Codes, any Business Areas or Profit Centers defined, Cost Centers defined, What’s the period of the project, When did they Go-Live?, Any issues you’d solved during ‘Support’ phase?

Questions on conceptual understanding:

a) SAP R/3 definition and 3-Tier Architecture

b) ‘Real time integration’ advantage of SAP

c) ASAP methodology

d) Solution Manager

e) Client / Company / Company Code / Business Area

f) Business Area vs Profit Center Approach

g) How effective will be the Financial Statements generated through Business Areas

h) With Holding Taxes vs Extended WHT

i) Field Status Concepts (G/L master fields controlled through Account Group and Document
entry through Field Status Group set in the G/L master)

j) Special G/L transactions

k) Open item management

l) Reconciliation Accounts

m) Subsidiary Ledgers

n) Sort key

o) Negative Postings Allowed

p) Special periods

q) Only balances in local currency

r) Important Posting keys for G/L, A/R, A/P, AA, Stock Entries

s) Assessment vs Distribution

t) Org. Structure for FI

u) Org. Structure for CO

v) Product Costing: How the values flow in the system

Configuration:

a) Extended With Holding Taxes configuration steps – right from creation of WH Tax Types, Codes to Annual Return

b) FI-MM Integration (OBYC configuration with particular reference to Off-Setting entries)

c) FI-SD integration

d) Down Payments transactions

e) Interest – Balances / Arrears

f) Asset Accounting: Asset Class, Main Asset, Sub-Asset, Group Asset, Dep. Areas, Dep. Key,

Transaction No.s (100- External acquisition, 210 – Retirement with Revenue, etc.), Imp.

Transaction Codes.

General questions:

a) Educational Background

b) What influenced you to go in for SAP career?

c) Functional Career

d) Present earnings vs Expected pay

e) Inclination to relocate

FI/CO Interview Questions

What is APC?

APC stands for Acquisition and Production costs. Acquisition means any asset which you may acquire/ purchase externally. It includes invoice price and other related exp. Associated with it like customs, octroi, freight which you add and arrive at total cost of acquisition for capitalisation of the asset.For ex Say a computer. The total cost which you incurr for the acquisition of the computer including installation will be your APC

Production cost means any asset which is created internally within the organisation. This is normally created by means of AUC and you go on adding cost to the AUC as and when you incurr exp. for the same.For ex. say addition to the office building. Therefore APC incudes any external acquisition or internal construction of exp. which needs to be capitalised.

In OADB under 01 deprn area Acquisition & prod Cost tick is activated.

This is umapathy, I have intereview tomorrow, if anybody have taken interview with any company, kindly let me know what the questions they will be asking, how will be the interview. How the questions will be on configuration, implementation side and other questions plz.. share with me.

Pl. prepare yourself on the following broad lines:

Implementation exp.:
Brief about the project you did: w.r.t. the main activity of the client, How many plants they had, What modules were implemented, Who were the implementers, What’s the implementation team size, How many were in your module team, What’s your role in the project with respect to the activities you partook in the project, The Enterprise Structure with regard to the no. of Company Codes, any Business Areas or Profit Centers defined, Cost Centers defined, What’s the period of the project, When did they Go-Live?, Any issues you’d solved during ‘Support’ phase?

Questions on conceptual understanding:
a) SAP R/3 definition and 3-Tier Architecture
b) ‘Real time integration’ advantage of SAP
c) ASAP methodology
d) Solution Manager
e) Client / Company / Company Code / Business Area
f) Business Area vs Profit Center Approach
g) How effective will be the Financial Statements generated through Business Areas
h) With Holding Taxes vs Extended WHT
i) Field Status Concepts (G/L master fields controlled through Account Group and Document entry through Field Status Group set in the G/L master)
j) Special G/L transactions
k) Open item management
l) Reconciliation Accounts
m) Subsidiary Ledgers
n) Sort key
o) Negative Postings Allowed
p) Special periods
q) Only balances in local currency
r) Important Posting keys for G/L, A/R, A/P, AA, Stock Entries
s) Assessment vs Distribution
t) Org. Structure for FI
u) Org. Structure for CO
v) Product Costing: How the values flow in the system

Configuration:
a) Extended With Holding Taxes configuration steps – right from creation of WH Tax Types, Codes to Annual Return
b) FI-MM Integration (OBYC configuration with particular reference to Off-Setting entries)
c) FI-SD integration
d) Down Payments transactions
e) Interest – Balances / Arrears
f) Asset Accounting: Asset Class, Main Asset, Sub-Asset, Group Asset, Dep. Areas, Dep. Key, Transaction No.s (100- External acquisition, 210 – Retirement with Revenue, etc.), Imp. Transaction Codes.

General questions:
a) Educational Background
b) What influenced you to go in for SAP career?
c) Functional Career
d) Present earnings vs Expected pay
e) Inclination to relocate

SAP FI Functional Consultant Responsibilities

What is the meaning of SAP FICO Functional and SAP FICO Technical?

SAP FICO Functional means functional knowledge, by which one can proceed in terms of functional process with FICO area as well as FICO configuration knowledge.

Whereas SAP FICO Technical consultant may be an ABAPER, who have short of knowledge of FICO configuration and functional knowledge as well and can proceed for technical jobs e.g. reports development, client requirement, system modification etc.

To become a Pure Hard Core FI functional consultant

Q: Can via T.Code FBL1N by selecting vendor with plant reference in selection using search help field group.

Plant is not a field for finance or in sap it is FI module - this is for PP and MM module, In case required, please define that as FI object for FI reports - like BA and so on. Configure the plant as a BA and in all FI places you can capture BA in line items of vendors.

Spent little time on going through various standard reports of SAP which are very rich in itself - for each report it has options of all fields of master data , all fields of FI document means around in my opinion around 400+ options to select. Hence we should first get an idea of fields in masters and documents and how they are updated.

To become a good consultant.... Every report of SAP standard is a gem - but we always look for FAST FOOD without understanding the quality of how standard is the solutions..

Spent time in understanding - there are lot of chapters available for reading . Suggestions ... Understand the Finance function first upto closing of books and management reportings done in a practical way. Go to sap img screen - you will find all options are there... If you go reverse way , sitting inside the car and asking - anyone can help me in understanding what is the wheel in front of driver used and how to use it??

All the best - take it in the right spirit for a successful future