Kamesh: QnA 4

What is special purpose ledger?

Special Purpose Ledgers’ (FI-SL) are used in reporting. These are basically user-defined ledgers, which can be maintained either as GL or subsidiary ones with various account assignment objects (with SAP-dimensions such as cost center, business area, profit center, etc., or customer-defined dimensions such as region, area, etc.).

Once defined, this functionality helps you to report at various levels. Ideally you collect the information, combine it, and create the totals. This is something such as an additional reporting feature, and use of this feature will have no effect on the regular functionalities of SAP
It also helps in doing single-entry, adjustment posting, such as income tax depreciation.

In ECC 6 during APP run for say vendor (1000) system is printing single check for few open items and for few open items individual checks are printed. My client ways to print single check for on vendor.

we have to deselect individual payee check box. so that we get single check for All invoice/ bill.

How many charts of accounts can be assigned to a company code?

One chart of accounts can be assigned to several Company Codes. However, the reverse is not possible; i.e., you will not be able assign more than one chart of accounts to a single Company Code.

What ‘Variances’ do You come Across in Invoice Verification?

The system needs to be configured properly with ‘Tolerances’ so that you are not hampered with variances when you try Invoice Verification. You need to define the lower and upper limits for each combination of the Company Code and the tolerance key defined for the various variances. The system then checks these tolerance limits and issues warnings or prevents you from proceeding further when you process an invoice.

‘Variances’ arise because of mismatch or discrepancies between the invoice and the PO against which the invoice has been issued. Normally you will encounter:

1. Price variances: If there is a discrepancy in invoice price and PO item prices.

2. Schedule variances: If the planned delivery date is later than the invoice postings.

3. Quantity variances: If the delivered quantity (or delivered quantity less the previously invoiced quantity) is not the same as that of the invoiced quantity. When the invoiced quantity is more than the GR, the system requires more GRs to square off the situation.

What is a GR/IR account? Why is it maintained?

A GR/IR account represents goods receipts and invoice receipts. This is a clearing account that is maintained to nullify the time difference between goods receipts and invoice receipts from the business partner. The balance in the GR/IR account increases because of the following:

· If the quantity received is less than the quantity invoiced. The system then expects further goods receipts for this purchase order in order to clear this balance.

· If the quantity received is more than the quantity invoiced. The system then expects further invoices for this purchase order to clear this balance.

Explain ‘Invoice Verification’ (IV) in SAP

‘Invoice Verification’ involves:

1. Validating the accuracy of the invoices (quantity, value, etc.).

2. Checking for ‘blocked’ invoices (which vary to a great extent from that of the PO).

3. Matching of invoices received from vendors with that of the Purchase Order/ Goods Receipt. At this point in time, the PO History is updated for the corresponding PO Line Item(s) of the matched invoice.

4. Passing of matched invoices to the FI module. The system posts the following entries:

o Debit: GR/IR Clearing Account

o Credit: Vendor a/c (Accounts Payable open line item)

o Credit: GL Reconciliation Account

The different scenarios in invoice verification include:

4. GR-based Invoice Verification indicator is not set in the PO detail screen: Although this setting enables you to post the invoice referenced to a PO prior to making a GR, the system will block the invoice for payment (this kind of posting results in a Quantity Variance as there has not been a GR).

5. GR-based Invoice Verification indicator is set in the PO detail screen: When the PO number is referenced the system brings up all the unmatched items of GR in the selection screen. You will not be able to post the invoice for its full value, unless the PO has been fully received.

What is a *returned bill of exchange payable*?

Where a bill is returned, the bill is actually being withdrawn by the acceptor to avoid dishonor. A new bill maturing at a later date is given in place of the old bill.

Where do we link country specific chart of account

we can link the country specific chart of account to company code in TR. code

-OBY6 i.e in global parameters Or

-OB62 assignment of chart of account

What is Born in sale?

Born in sale means-Discount sale.

Discounts are born in sale.

"TOLERANCE GROUP FOR EMPLOYEES"

In "TOLERANCE GROUP FOR EMPLOYEES",

we can give TOLERANCE Limit only for Employees. Like giving Limits to employeessuch as,

-Amount per document,

-Amount per open item,

-Discount per line item..

What is business area? Can you assign it to a company?

a seperate area of operaion or responsibility with in organisation
business area are designed to cut across co.code i.e, same business area can be used by all co.code
the business area is available at client level
the business area is not assigned to any co.code

Why assignment of business area to co.code is not required?
we are giving at the time of posting combination of co.code and business area
at the time of ledger display we are giving the combination of co.code and business

What is SAP standard organisation structure?

Organisation Structure

Client

Operating Concern

Controlling Area

Company Code

Business Area ( Optional)

What are the Year End Closing Activities in Finance?

1)To Carry forward vendor and customers balance to next FY as opening balance (F-07)

2)To Carry forward asset Balance
-to check which year is closed for asset accounting (OAAQ)
-to close previous FY for asset accounting (AJAB)
-to open next FY for asset accounting (AJRW)

3)To carry forward G/L Balances

4)To Copy no range intervals for next FY

5)To open posting period for next year

6)To open special periods

What are the Month End Closing Activities in Finance?

1. Recurring Documents.

a) Create Recurring documents

b) Create Batch Input for Posting Recurring Documents

c) Run the Batch Input Session

2. Posting Accruals or Provisions entries at month end

3. Managing the GR/IR Account-Run the GR/Ir Automatic Clearing

4. Foreign Currency Open Item Revaluation-Revalue Open Items in

AR.AP

5. Maintain Exchange Rates

6. Run Balance Sheets –Run Financial Statement Version

7. Reclassify Payables and Receivables if necessary

8. Run the Depreciation Calculation

9. Fiscal Year Change of Asset Accounting if it is year end

10. Run the Bank Reconciliation

11. Open Next Accounting Period

What is a Sort key? What r the different tpes of Sort Keys u have in SAP(FICO)

Sort Key: When u post the line item in GL account, the field called Assignment is populated, and when u run the report of the GL Account ( GL account line item report), the system by default sort the value specified assignment field.

`001 Posting Date

`012 vendor no

`014 Purchase order

`018 Asset number

`031 Customer number

Why we are using sort keys.

Straight answer to this is sort key offers great help in Automatic Clearing.

First we understand how does it function. If you have created Bank GL and there you have used 001 (posting date) as sort key then whenever you make entry for that bank Gl your sort key "Posting date" is automatically updated

in "Assignment" field unless you manually insert anything in assignment field.

Let's take a simple example for why sort keys are helpful.

Suppose, there is GR/IR account created with sort key 014 (Purchase Order) so at the time of

1. Goods receipt Purchase order with item no will automatically filled in assignment field.

Inventory dr. 15000

GR/IR cr 15000.

In GR/IR account item Assignment would be 150000 10.

2. Invoice through MIRO will also feed Purchase Order with item no in assignment field.

GR/IR dr . 15000

Tax dr. 5000

Vendot cr. 20000

In GR/IR account item Assignment would be 150000 10.

Now your entry is over. There are large number of such entries posted in the period for the GR/IR account. So, manual clearing becomes very tedious for GR/IR clearing account. In order to avoid that Automatic Clearing program

is configured in OB74, where you give field ZUONR i.e. assignment in first criterion. So, line items with same assignment and amount will be cleared automatically upon F.13 transaction.