Acknowledgments 21 Preface 23 1 Financial Accounting in SAP Financials 27 1.1 SAP Enterprise Resource Planning 6.0 27 1.2 SAP ERP Financials 29 1.2.1 Key Functionality 30 1.2.2 Business Benefits 32 1.

3 SAP ERP Financials Financial Accounting 32 1.3.1 What s New 33 1.3.2 Components 35 1.4 Summary 37 2 New General Ledger 39 2.1 New G/L Architecture 40 2.1.

1 Totals Table 41 2.1.2 Ledger-Specific Line Items Tables 42 2.1.3 Table for Storing Valuations for Year-End Closing in Selected Parallel Ledgers (BSEG_ADD) 42 2.2 New Features in New G/L 43 2.2.1 Ledger Concept 44 2.

2.2 Functionality 46 2.3 Summary 56 3 Customizing SAP 57 3.1 The Implementation Guide 58 3.1.1 IMG Settings 58 3.1.2 IMG Variants 60 3.

1.3 Logical Components of IMG 61 3.2 Creating a Customizing Project 63 3.3 Alternate Method to Customize Through IMG 68 3.4 Summary 69 4 Enterprise Structure 71 4.1 Organizational Units in Financial Accounting (FI) 72 4.2 Localize Sample Organizational Units 73 4.3 Define Company 77 4.

4 Define Company Code 80 4.4.1 Create Company Code without Copying from an Existing Company Code 82 4.4.2 Create Company Code by Copying an Existing Company Code 85 4.4.3 Assign Company Code to Company 88 4.5 Define Credit Control Area 89 4.

5.1 Centralized Credit Management 90 4.5.2 Decentralized Credit Management 91 4.5.3 Mixed Credit Management 91 4.5.4 Assign Company Code to Credit Control Area 96 4.

6 Define Business Area 97 4.7 Define Segments 100 4.8 Define Financial Management Area 103 4.9 Define Functional Area 107 4.10 Define Controlling Area 109 4.10.1 Create New Controlling Area 110 4.10.

2 Assign Controlling Area to Company Code 113 4.11 Define Profit Centers 115 4.12 Summary 120 5 Financial Accounting Global Settings (New): Company Code Global Parameters 123 5.1 Activate New General Ledger Accounting 123 5.2 Fiscal Year and Posting Periods 125 5.2.1 Maintain Fiscal Year Variant (Maintain Shortened Fiscal Year) 130 5.2.

2 Define Variants for Open Posting Periods 135 5.2.3 Open and Close Posting Periods 137 5.3 Settings for Standard Fields 140 5.3.1 Maintain Transaction Types for Consolidation 141 5.3.2 Activate Cost of Sales Accounting for Preparation 143 5.

3.3 Enter Functional Area 144 5.4 Settings for Customer Fields 145 5.4.1 Edit Coding Block 145 5.4.2 Include Fields in Totals Table 148 5.4.

3 Define Master Data Check 150 5.4.4 Include Customer Fields in Enjoy Transactions 152 5.4.5 Define Subscreens for Coding Blocks 153 5.5 Field Status 153 5.5.1 Define Field Status Variants (FSVs) 156 5.

5.2 Assign Company Code to Field Status Variants 158 5.6 Ledgers for G/L Accounting 159 5.6.1 Define Ledgers for G/L Accounting 160 5.6.2 Define Currencies of Leading Ledger 161 5.6.

3 Define and Activate Non-Leading Ledgers 164 5.6.4 Define Ledger Group 165 5.6.5 Display Scenarios for G/L Accounting 167 5.6.6 Activate Cost of Sales Accounting 170 5.7 Parallel Accounting 171 5.

7.1 Define Accounting Principles 171 5.7.2 Assign Accounting Principle to Ledger Groups 172 5.7.3 Assign Valuation Areas and Accounting Principles 173 5.8 Real-Time Integration of CO with FI 175 5.8.

1 Define Variants for Real-Time Integration 176 5.8.2 Assign Variants for Real-Time Integration to Company Codes 178 5.9 Chart of Accounts 178 5.9.1 Revise Chart of Accounts 180 5.9.2 Assign Company Code to Chart of Accounts 182 5.

10 Enter Company Code Global Parameters 183 5.11 Summary 190 6 Financial Accounting Global Settings (New): Documents 193 6.1 Document Components 194 6.2 Document Types 197 6.2.1 Define Document Types for Entry View 199 6.2.2 Define Document Types for Entry View in a Ledger 203 6.

2.3 Define Document Types for General Ledger View 203 6.3 Document Numbering 204 6.3.1 Types of Number Assignment 204 6.3.2 Number Range Validity 205 6.3.

3 Changing/Deleting Number Ranges 206 6.3.4 Number Range for Reversal Documents 206 6.3.5 Number Range for Special Documents 207 6.3.6 Document Storage 207 6.3.

7 Define Document Number Ranges for Entry View 207 6.4 Screen Variants for Document Entry 211 6.5 Document Change Rules 211 6.5.1 Document Change Rules, Document Header 211 6.5.2 Document Change Rules, Line Item 212 6.6 Posting Keys 213 6.

7 Tolerance Groups 215 6.7.1 Define Tolerance Groups for Employees 216 6.7.2 Assign Users to Tolerance Groups 220 6.8 Define Texts for Line Items 221 6.9 Default Values 222 6.9.

1 Define Default Values 223 6.9.2 Enable Fiscal Year Default 224 6.9.3 Default Value Date 224 6.9.4 Change Message Control for Document Processing 225 6.10 Document Parking 226 6.

10.1 Change Posting Date for Parking Documents 226 6.10.2 Develop Enhancements for Parking Documents 227 6.11 Validation and Substitution of Accounting Documents 228 6.11.1 Validation in Accounting Documents 228 6.11.

2 Substitution in Accounting Documents 231 6.12 Account Document Archiving 232 6.12.1 Archiving, Account Type Life 232 6.12.2 Archiving, Document Life 234 6.13 Summary 235 7 Financial Accounting Global Settings (New): Tax and Correspondence 237 7.1 Tax on Sales and Purchases 238 7.

1.1 Basic Settings 239 7.1.2 Calculation 255 7.1.3 Posting 261 7.2 Withholding Tax 263 7.2.

1 Activate Extended Withholding Tax 265 7.2.2 Basic Settings 265 7.2.3 Calculation 268 7.2.4 Posting 282 7.2.

5 Certificate Numbering for Withholding Tax 284 7.2.6 Report 287 7.2.7 Withholding Tax Changeover 291 7.3 Correspondence 295 7.3.1 Using Correspondence Types 295 7.

3.2 Assign Programs for Correspondence Types 296 7.3.3 Define Sender Details for Correspondence Form 297 7.3.4 Determine Call-Up Functions 298 7.3.5 Develop Enhancements for Correspondence 298 7.

4 Summary 299 8 General Ledger Accounting (New) 301 8.1 G/L Account Master Data 301 8.1.1 Preparations 303 8.1.2 G/L Account Creation and Processing 309 8.2 Business Transactions 323 8.2.

1 Adjustment Posting and Reversal 323 8.2.2 Bank Account Interest Calculation 325 8.2.3 Prepare Cross-Company Code Transactions 339 8.2.4 Document Splitting 342 8.2.

5 Manual Accrual 351 8.2.6 Open Item Clearing 366 8.3 Periodic Processing 376 8.3.1 Planning 376 8.3.2 Closing Operations 382 8.

4 Tools 387 8.5 Reporting 388 8.6 Summary 390 9 Accounts Payable (FI-A/P) 391 9.1 Vendor Master Data 392 9.1.1 Function and Structure 392 9.1.2 Preparatory Settings to Create Master Data 393 9.

1.3 Creation of Vendor Master Records 398 9.2 Business Transactions 401 9.2.1 Maintain Terms of Payment 401 9.2.2 Define Cash Discount Base for Incoming Invoices 405 9.2.

3 Release for Payment 405 9.3 Outgoing Payments 413 9.3.1 Global Settings 414 9.3.2 Manual Outgoing Payments 418 9.3.3 Automatic Outgoing Payments 424 9.

3.4 Define Payment Forms 445 9.4 Reporting 447 9.5 Summary 449 10 Accounts Receivable (FI-A/R) 451 10.1 Customer Account Master Data 452 10.1.1 Structure 452 10.1.

2 Prepare for Creating Customer Masters 453 10.1.3 Create Customer Master Records 458 10.2 Business Transactions 462 10.2.1 Maintain Terms of Payment 462 10.2.2 Define Cash Discount Base for Outgoing Invoices 463 10.

2.3 Define Tax Accounts for Outgoing Invoices 463 10.2.4 Incoming Payments 464 10.2.5 Payments with Payment Cards 468 10.2.6 Down Payment Received 470 10.

3 Credit Management 472 10.3.1 Assign Permitted Credit Control Areas to Company Code 473 10.3.2 Define Preliminary Settings for Credit Management 473 10.3.3 Define Groups 475 10.3.

4 Define Risk Categories 476 10.3.5 Define Credit Representative Groups 477 10.3.6 Define Credit Representatives 478 10.3.7 Define Intervals for Days in Arrears in Credit Management 479 10.3.

8 Credit Check: Static and Dynamic 480 10.4 Interest Calculation 481 10.4.1 Prepare Interest on Arrears Calculation 482 10.4.2 Prepare Item Interest Calculation 484 10.5 Dunning 485 10.5.

1 Define Dunning Keys 488 10.5.2 Define Dunning Block Reasons 489 10.5.3 Define Dunning Forms 490 10.5.4 Define Dunning Procedures 491 10.5.

5 Define Dunning Areas 502 10.5.6 Generate List for Dunning Configuration 503 10.6 Reporting 504 10.7 Summary 505 11 Contract Accounts Receivable and Payable (FI-CA) 507 11.1 Organizational Units 508 11.1.1 Set Up Company Code for Contract Accounts Receivable.