Monday, February 04, 2008

The Financial Statement Closing Tcodes

1. Maintain Financial Statement Versions
IMG -> Financial Accounting -> General Ledger Accounting -> Business Transactions -> Closing -> Documenting -> Define Financial Statement Versions - OB58

2. Execute a Balance Sheet (RFBILA00)
Information Systems -> Accounting -> Financial Accounting -> General ledger -> Information System-> Balance Sheet

or

Accounting -> Financial accounting -> General ledger -> Information system -> General LedgerReports -> Balance Sheet/Profit and Loss Statement/Cash Flow -> General -> Actual/Actual Comparisons -> Balance Sheet/P+L - F.01

3. Execute a Balance Sheet Drill Down Report
Accounting -> Financial accounting -> General ledger -> Information system -> General LedgerReports -> Balance Sheet/Profit and Loss Statement/Cash Flow -> General - Various

4. Execute a Cost-of-Sales Profit and Loss Report
Accounting -> Financial accounting -> Special Purpose Ledger -> Tools -> Report Painter -> Report -> Display -> Library 0F1, Report 0F-GUV1 -> Display -> Execute - GRR3

Bank Reconciliation

1) 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.

2) 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.

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

4) 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

Cheque Received From Customer

5) Accounting entry at the time of cheque deposit entry
Bank Cheque deposit account DebitCustomer Credit

6) Accounting entry after cheque has been cleared in the Bank statement Main Bank accountDebit Bank

Cheque deposit account Credit

7) 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

8) Accounting entry at the time of cheque issue
Vendor account DebitBank cheque payment account Credit

9) Accounting entry after cheque has been presented in the Bank
Bank cheque payment account DebitMain Bank account Credit

10) 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.

Direct Debit In Bank

11) 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

12) 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 DebitCustomer account Credit
Main Bank A/c Debit
Bank Clearing A/c Credit

Bank Fixed Deposits

13) 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

14) 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.

15) 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


16) 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.

17) 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.

18) 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.

Assets and Liabilities Closing Tcodes

1. Process Depreciation Run Accounting -> Financial accounting -> Fixed assets -> Periodic processing -> Depreciation run -> Execute - AFAB

2. Process Investment Grant Accounting -> Financial accounting -> Fixed assets -> Periodic processing -> Investment grant- AR11

3. Process Revaluation Accounting -> Financial accounting -> Fixed assets -> Periodic processing -> Revaluation for the balance sheet -> Post revaluation - AR29

4. AA Fiscal Year Change Accounting -> Financial accounting -> Fixed assets -> Periodic processing -> Fiscal year change - AJRW

5. AA Fiscal Year Close – Account Reconciliation Accounting -> Financial accounting -> Fixed assets -> Periodic processing -> Year-end closing -> Account reconciliation - ABST2

6. AA Fiscal Year Close Accounting -> Financial accounting -> Fixed assets -> Periodic processing -> Year-end closing -> Execute - AJAB

7. Produce Asset History Sheet Accounting -> Financial accounting -> Fixed assets -> Info system -> Reports on Asset Accounting -> Balance Sheet Explanations -> International -> Asset History Sheet

or

Accounting -> Financial accounting -> Fixed assets -> Info system -> Reports on Asset Accounting -> Balance Sheet Explanations -> Country Specifics - various

8. Produce GR/IR Balance Report Logistics -> Materials Management -> Inventory Management -> Environment -> Balances Display -> List of GR/IR Bals. - MB5S

9. Maintain GR/IR Clearing Account Logistics -> Materials Management -> Invoice Verification -> Invoice Verification -> Further processing -> Maintain GR/IR acct - MR11

10. Material Revaluations – Price Changes (manual) Logistics -> Materials Management -> Valuation -> Valuation -> Price Determination -> Change price - MR21

11. Material Revaluations – Debit/Credit Material Logistics -> Materials Management -> Valuation -> Valuation -> Price Determination -> Debit/cred. material - MR22

12. Product Costing Material Price Change Accounting -> Controlling -> Product Cost Controlling -> Product Cost Planning -> Material Costing -> Price Update - CK24

13. Material Ledger Closing Logistics -> Materials Management -> Valuation -> Actual Costing/Material Ledger -> Periodic material valuation -> Post closing - CKMI

14. Materials Management Closing Logistics -> Materials Management -> Material Master -> Other -> Close period - MMPV

15. Materials Management Closing – Control Posting to Prior Period Logistics -> Materials Management -> Material Master -> Other -> Allow posting to previous period - MMRV

16. Lowest Value Determination – Market Prices Logistics -> Materials Management -> Valuation -> Valuation -> Bal. sheet valuation -> Determ. lowest values -> Market prices - MRN0

17. Lowest Value Determination – Range of Coverage Logistics -> Materials Management -> Valuation -> Valuation -> Bal. sheet valuation -> Determ. lowest values -> Range of coverage - MRN1

18. Lowest Value Determination – Movement Rate Logistics -> Materials Management -> Valuation -> Valuation -> Bal. sheet valuation -> Determ. lowest values -> Movement rate - MRN2

19. Lowest Value Determination – Loss-Free Valuation Logistics -> Materials Management -> Valuation -> Valuation -> Bal. sheet valuation -> Determ. lowest values -> Loss-free valuation - MRN3

20. LIFO Valuation Logistics -> Materials Management -> Valuation -> Valuation -> Bal. sheet valuation -> LIFO Valuation - Various

21. FIFO Valuation Logistics -> Materials Management -> Valuation -> Valuation -> Bal. sheet valuation -> FIFO Valuation - Various

22. Physical Inventory Processing Logistics -> Materials Management -> Physical Inventory - Various

23. Analyze GR/IR Clearing Accounts and Display Acquisition Tax Accounting -> Financial accounting -> General ledger -> Periodic processing -> Closing -> Regroup -> GR/IR clearing -
F.19

24. Define Adjustment Accounts for GR/IR Clearing IMG -> Financial Accounting -> General Ledger Accounting -> Business Transactions -> Closing -> Regrouping -> Define Adjustment Accounts for GR/IR Clearing - OBYP

25. Print Balance Confirmation Accounting -> Financial accounting -> A/P or A/R -> Periodic processing -> Closing -> Check/count -> Balance confirmation: Print

or

Accounting -> Financial accounting -> A/P or A/R -> Periodic processing -> Print correspondence -> Balance confirmation -> Print letters - F.17

26. Configure Balance Confirmation Accounting -> Financial accounting -> A/P or A/R -> Periodic processing -> Closing -> Check/count ->…

or

Accounting -> Financial accounting -> A/P or A/R -> Periodic processing -> Print correspondence -> Balance confirmation - F.1B, F.1A

27. Post Individual Value Adjustment Accounting -> Financial accounting -> Accounts receivable -> Document entry -> Other -> Intern. trans. posting -> Without clearing - F-21

28. Define Account Determination for Flat-Rate Individual Value Adjustment IMG -> Financial Accounting -> Accounts Receivable and Accounts Payable -> Business Transactions -> Closing -> Valuate -> Valuations -> Define Accounts OBB0

29. Configure Flat-Rate Individual Value Adjustment IMG -> Financial Accounting -> Accounts Receivable and Accounts Payable -> Business Transactions -> Closing -> Valuate -> Valuations ->… SPRO

30. Calculate Flat-Rate Individual Value Adjustment Accounting -> Financial accounting -> Accounts receivable -> Periodic processing -> Closing -> Valuate -> Further valuations - F107

31. Writing-Off Doubtful Receivables Accounting -> Financial accounting -> Accounts receivable -> Document entry -> Other -> Intern. trans. psting -> With clearing - F-30

32. Customizing Exchange Rates IMG -> General Settings -> Currencies - Various

33. Maintaining Exchange Rates Accounting -> Financial accounting -> General ledger -> Environment -> Current settings -> Enter exchange rates - OB08

34. Customizing Valuation Methods IMG -> Financial Accounting -> General Ledger Accounting
-> Business Transactions -> Closing -> Valuating -> Foreign Currency Valuation -> Define Valuation Methods - OB59

35. Foreign Currency Open Item Valuation Accounting -> Financial accounting -> General ledger -> Periodic processing -> Closing>>Valuate -> Valuation of Open Items in Foreign Currency - F.05

36. Account Determination for Exchange Rate Differences IMG -> Financial Accounting -> General Ledger Accounting -> Business Transactions -> Closing -> Valuating -> Foreign Currency Valuation -> Prepare automatic postings for foreign currencyvaluation - OBA1

37. Regroup Receivables and Payables Accounting -> Financial accounting -> A/P or A/R -> Periodic processing -> Closing -> Regroup -> Receivables/ Payables - F101

38. Account Determination for Regrouping Receivables and Payables IMG -> Financial Accounting -> Accounts Receivable and Accounts Payable -> Business Transactions -> Closing -> Regrouping - OBBV, OBBW, OBBX

39. Revalue Foreign Currency G/L Account Balances Accounting -> Financial accounting -> General ledger -> Periodic processing -> Closing -> Valuate -> Foreign Currency Valuation of Inventory - F.06

40. Posting Accruals/Deferrals Accounting -> Financial accounting -> General ledger -> Periodic processing -> Closing -> Valuate -> Enter Accrual/Deferral Doc. - FBS1

41. Posting Accrual/Deferral Reversal Accounting -> Financial accounting -> General ledger -> Periodic processing -> Closing -> Valuate -> Reverse Accrual/Deferral Document - F.81

42. Generate Recurring Entry Posting Accounting -> Financial accounting -> General ledger -> Periodic processing -> Recurring Entries -> Execute - F.14