5

1. What is the difference between stock transfer between two plants belongs to same company code and to that of different company code?
In 1st case it is called as intra company stock transfer and the 2nd case is inter company stock transfer.
Stock Transfer between plants of same company code only includes inventory movement without any pricing and so called Stock Transfer Order where Stock Transfer between plants of different company code is same as a purchase order as along with the inventory there is also accounts transfer (pricing) involved.


2. In real time, How listing and exclusion is used?
Listing and exclusion is used in chemical and pharma industries for ex:-Particular customer is not having a valid license of selling some chemical/Medicines and he is ordering the same. in this case listing and exclusion is usefull


3. What is the schema you use in Time Management?
Schema: TC00


4. What is the work relation between SAP-MM, SD and FICO modules?
SAP is the integration of all the modules and the topics are very relevant to each other because basically its management skill set group. From manufacturing the product / goods / services to reaching the customer. All the transaction process is depending on sales area, sales doc, item proposals, shipping, delivery and billing.


5. In SAP-HR, What is the landscape of your project?
Landscape in SAP consists the following:1. IDES = Training Server2. Development Server* Configuration (200 client)* Sandbox (210 client)* Data Change (220 client)3. Quality Server* Standby (300 client)* Testing (310 client)4. Production Server* Pre-Production (400 client)* Real Production (500 client)


6. What is the role of ABAPers? What is the Work Bench?
Abaper is a application programmer who retrieves the data from the database and show it to the end-user with the help of report, out of three layers of SAP the abaper position is on Application Layer in which SAP programs are develop and then transported to the Production server…
Workbench… The ABAP Workbench contains several tools that allow you to edit specific repository objects, like ABAP Editor, Menu Painter etc…


7. How to integrate MM With Fico?
Answer1By using transaction code OBYC we can get the details of MM, Fico integration.
Answer2Go to IMG settings in Financial accounting and do the configuration for MM-FI settings
Answer3Value from MM to FI is defined in OBYC…. on the material master the flow of values are assigned on the Costing, Accounting, etc tabs where the system helps to post the necessary stock values into the appropriate GL accounts. Helps to determine, the GL accounts updated when there is a movement of goods.


8. What is difference between business area or cost centre?
Business area is a place where the product or the produced components are valued in group or for the total transactions carried out, Right from procurement, production and sales of goods.
Where as Cost centre is a particular area where the production or the project is taken up and expenditure is identified separately with a separate GL account


9. How to create Tax Calculation Procedure?
Answer1:Tax calculation procedures based on the countries depended. One country is using deferent of tax procedures. We are creating new country also and at what type calculation procedures present is running on the country and it is assigned which country used.
Answer2:Tax calculation procedures based on the country wise using and which country is used at what percent and it is used on the country. We are creating new country also at what percent it is used and it is assigned to using of this country.

10. What is the difference between business area and profit center?
Answer1:Business area is where the total business is valuated as a whole
Whereas Profit centre is an area where the company/work place allows the outside agency to use its machinery for external profits (Ex: A CNC machine which can run 24 hrs a day is utilized in our company for 15 hrs and the balance 9 hrs is let out for addition to the company’s profit) is known as Profit Centre.
Answer2:Business area is related term to FI module and Profit centre is related to CO module. One business area can have one or more profit centers.


11. What is Legacy System Migration Workbench?
How it can be carried out in SAP SD?Answer1:LSMW is widely used by EDI programmers. EDI Programmers connect the SAP system to Non SAP system. During this Data migration is a necessity. When data migrates from source to destination the destination code is different from the source code. So what LSMW does is* Converts the data in to batch files* Then converts the batch files in to source code batch files* And then migrates data. Standard Interfaces like BAPI or Idoc are used in this process.
Answer2:LSMW is used for migrating data from a legacy system to SAP system, or from one SAP system to another.Apart from standard batch/direct input and recordings, BAPI and IDocs are available as additional import methods for processing the legacy data.
The LSMW comprises the following main steps:* Read data (legacy data in spreadsheet tables and/or sequential files).* Convert data (from the source into the target format).* Import data (to the database used by the R/3 application.
But, before these steps, you need to perform following steps :* Define source structure: structure of data in the source file.* Define target structure: structure of SAP that receives data.* Field mapping: Mapping between the source and target structure with conversions, if any.* Specify file: location of the source file


12. Of all the methods used for data migration like BDC, LSMW, Call Transaction which one is used most of the time? How is the decision made which method should be followed? What is the procedure followed for this analysis?
All the 3 methods are used to migrate data. Selection of these methods depends on the scenario, amount of data need to transfer. LSMW is a ready tool provided by SAP and you have to follow some 17 steps to migrate master data. While in BDCs Session method is the better choice because of some advantages over call transaction. But call transaction is also very useful to do immediate updation of small amount of data. (In call transaction developer has to handle errors).
Bottom line is make choice of these methods based of real time requirements.
These methods are chosen completely based on situation you are in. Direct input method is not available for all scenarios; else, they are the simplest ones. In batch input method, you need to do recording for the transaction concerned. Similarly, IDoc, and BAPI are there, and use of these need to be decided based on the requirement.
Try to go through the some material on these four methods, and implement them. You will then have a fair idea about when to use which.


13. What is the difference between the stock transfer between two plants belonging to same company code and those belonging to different company code?Answer1:A stock transfer from plant to plant generally takes place within a company code. It can, however, also take place between two company codes, if the plants are assigned to different valuation areas, which belong to different company codes.
Unlike a stock transfer from storage location to storage location, a stock transfer from plant to plant affects both accounting and Materials Planning, as follows:
* AccountingAccounting is affected if both plants are assigned to different valuation areas. This means that a stock transfer leads not only to a quantity update but also to a value update (stock value, G/L accounts). Thus, parallel to the material document for stock transfer, an accounting document is created.
* Materials PlanningMaterials Planning is affected because a change of plant stock is taken into account by Materials Planning.
Answer2:The stock transfer from one plant to another belonging to same company code is same as that of belonging to different company code functionally.
In both the types of transfers, there will be a material document generated which will update the QTY in both the plants in the respective storage location.
Accounting document generation will depend on the valuation level of the material. If the materials are being valuated at company level and it is being transferred from one plant to another belonging to the same company code, no accounting entry is generated. However, if the valuation is being done at plant level, the accounting document will be generated in both the cases.


14. What are the fields in purchasing view?-
RFQ/Quotation- Purchase requisition- Purchase order- Master data (Info record, Source list, Conditions, Vendors etc.)v - Outline agreements


15. How do you create movement types?
What are the steps involved? When will you recommend a new movement type?A movement type can be created using T code OMJJ. Copying an existing movement type and modifying the field contents can create a new movement type.
The SAP system is delivered with some pre-defined movement types from 100 to 899. 900 onwards can be used for customized movement types.

4

1. What should be the approach for writing a BDC program?
STEP 1: CONVERTING THE LEGACY SYSTEM DATA TO A FLAT FILE to internal table CALLED “CONVERSION”.STEP 2: TRANSFERING THE FLAT FILE INTO SAP SYSTEM CALLED “SAP DATA TRANSFER”.STEP 3: DEPENDING UPON THE BDC TYPEi)call transaction(Write the program explicity)ii) create sessions (sessions are created and processed.if success data will transfer).


2. What are the problems in processing batch input sessions and How is batch input process different from processing online?
PROBLEMS:i) If the user forgets to opt for keep session then the session will be automatically removed from the session queue(log remains). However if session is processed we may delete it manually.
ii)if session processing fails data will not be transferred to SAP database table.


3. What does an extract statement do in the ABAP program?
Once you have declared the possible record types as field groups and defined their structure, you can fill the extract dataset using the following statements: EXTRACT. When the first EXTRACT statement occurs in a program, the system creates the extract dataset and adds the first extract record to it. In each subsequent EXTRACT statement, the new extract record is added to the dataset EXTRACT HEADER. When you extract the data, the record is filled with the current values of the corresponding fields. As soon as the system has processed the first EXTRACT statement for a field group , the structure of the corresponding extract record in the extract dataset is fixed. You can no longer insert new fields into the field groups and HEADER. If you try to modify one of the field groups afterwards and use it in another EXTRACT statement, a runtime error occurs. By processing EXTRACT statements several times using different field groups, you fill the extract dataset with records of different length and structure. Since you can modify field groups dynamically up to their first usage in an EXTRACT statement, extract datasets provide the advantage that you need not determine the structure at the beginning of the program.


4. Can a transparent table exist in data dictionary but not in the data base physically?
NO. TRANSPARENT TABLE DO EXIST WITH THE SAME STRUCTURE BOTH IN THE DICTIONARY AS WELL AS IN THE DATABASE,EXACTLY WITH THE SAME DATA AND FIELDS.


5. What is the step by step process to create a table in data dictionary?
Step 1: creating domains(data type, field length, range).Step 2: creating data elements(properties and type for a table field).Step 3: creating tables(SE11).


6. What is the difference between updated project and end to end project? ExplainAnswer1:Some organisations select to implement SAP module by module, thus gets updated as per their convenience / schedule. This is called as updated project.
Some organisations simply plan all integrated functional modules and decide to go-live with all functional modules and take their entire operations on SAP. This is called as End to End SAP implementation project.
Answer2:Upgrade Project is a project where in SAP is already in place and it is the version upgrade from a lower end to a higher version.
End to End project is a project where SAP is implemented for the first time.


7. What is Ranking order in automatic payment programme ?
Its the priority assigned to each house bank which helps Automatic Payement program choose the house bank for payment in case there are more than one bank satisfying the payment program.
If a payment program ends up selecting more than one(say 4) bank for payment, the ranking of the banks helps it select one bank from the list of (say 4) selected banks.


8. What is SAP APO?
Answer1:SAP APO stands for Advanced Planner and Optimizer, which is one area of SCM and application component of MySAP product. Its is designed to provide solutions for companies in Demand planning, network design, supply network planning, production planning and global available to promise, transportation and scheduling.
Answer2:Prior to SCM4.0 (-APO3.1) APO was a system, now from SCM4.0 APO is a function of SCM not a system as SCM now includes ECH and CM


9. What are the support tickets given in SAP fico module?
please give some examples.Support tickets are basically the problems that arise in day to day usage of SAP. So any sap fico consultant who is resolving the day to day production issues is actually supporting the tickets.


10. How is bank reconciliation handled in SAP?
The following are the steps for BRS:1. Create Bank Master Data - This can be created through T.Code FI01 or you can also create the house bank through IMG/FA/Bank accounting/Bank account2. Define House Bank3. Set up Bank selection payment programe- IMG/FA/ARAP/BT/AUTOIP/PM/Bank selection for payment prg.a. setup all co codes for payment transaction - Customer and vendorsb.setup paying co codes for payment transactionsc.setup payment method per countryd.setup payment method per co code for payment transactione.setup bank determination for payment transaction
Please go for Cheque mangement using T code FCHI (IMG/FA/ARAP/BT/OP/AutoOp/PaymentMedia/ CheckManagement) and for void reasons FCHV. You can create Bank Reconcilliation statement by TC FF67 (SAP/AC/Treasury/CashManagement/Incomings /ManualBankStatement) . Don’t forget to keep the opening Balance as zero. Use FBEA for post process.
All the steps together will lead to (FF67) Bank reconciliation statement.


11. How do you configure electronic bank statement?A
nswer1:Following is the sequence of configuration to be done for Electronis Bank Statment(EBS):1. create Tranaction types( which helps you group all the house baks with same External transaction code).2. assign them to house banks.3 create and define posting rule keys .4 assign them to external transaction codes.external transaction codes are bank specific codes for buisness tranactions( which it issues in each EBS) each one for each type of payment. eg. transfer order, foreign transfer,bill of exchange etc.5 define posting specification for G/L posting as well as subledger posting6. define account symbols(which determines the G/L account to be posted to) and assign them to posting keys.
Answer2:1. Create account symbols2. Create gl accounts ans assign t account symbols3. Create posting keys:4. Posting rules5. Assing external transactions


12. How do you configure manual bank statement?
Configuration is required during electronic bank statement not in manual bank statement. In manual bank statement you just have to enter the data on screen and save it.


13. What is dunning?
Dunning is actually the process by which you “bill” or “invoice” a customer for past due items.With regards bad Checks for example dunning procedure could follow these steps:
• Step 1: Phone call to customer on receipt of bad check – at this stage, perform the journal posting outlined in section on Returned Checks• Step 2: Letter to customer (+10 days)• Step 3: Letter to CO (+7 days)• Step 4: Legal letter to customer (? DD139) (+13 days)• Step 5: Issue DD139 (+10 days)• Step 6: Follow-up on DD139 (dispersing officer) (+45 days)• Step 7: Write-off (after 6 months)Steps 2-6 above will be handled by dunning levels in SAP.
Configuration before dunning can be carried out1. Defining Dunning Area2. Define Dunning Keys3. Define Dunning Block Reasons4. Dunning Procedure• Define Dunning Procedure (T. Code – FBMP), To set up a Dunning Procedure, the following must be specified: number of Dunning Levels (1-9) Dunning Texts, Standard Text can also be included in the Dunning Texts. Dunning Procedure major parameters: Dunning Interval, Number of Dunning Levels, Grace Period5. Assign Dunning Procedure to Customer / Vendors Accounts (T. Code – XD02)6. Define Correspondence Types (T. Code – OB77)7. Assign Company Codes to Correspondence company Codes8. Assign Programs for Correspondence Types (OB78)9. Dunning Run: Transaction Code: F150Menu Path: accounting > financial accounting > accounts receivable > periodic processing > dunning.Note: Whenever you schedule more than one dunning run a day, the “Identification” number must change. You may run several dunning runs on the same date but the “Identification” name must be different as well as certain parameters such as the “Dunning Date” and “Documents Posted up to” date.


14. What is the difference between profit center accounting and Profitability analysis ?
Profit center accounting is basically done for internal controlling purposes. It lets you determine the profit and loss using the cost of sale approach or period accounting approach. Here you can find the profit from an “area of responsibility or person” point of view, this is account based costing
Whereas in Profitability analysis, market segments based on product, customer, order or any combination of these are studied to find outs the profit. PA provides information to the marketing, sales and planning department so that they can make decisions. PA has two forms account based and CO based.
Both these are tools for profit management, and both are alternative. They are not same.


15. What are the manufacturing cost of a production?
Material cost + Productions cost = Manufacturing cost

3

1. What is chart of account? What is the relevance of defining chart of account?

A. It is the top level  financial structure, contains the GL Accounts we define the all the accounts and one chart of accounts assign to company code and one chart of accounts will assign to many company codes . It is list of Gl accounts and  it contains account no , account name, language, length, cost element, blocking information that controls the how an account functions and how a gl account created in company code . COA Key.

2.  What is account group? What does it control?

A. IT determines the which fields you need to configure on the GL master record. It is necessary to have at least 2, one for B/S and another one for P&L accounts. It controls the number ranges of GL. The Status fields of the master record of GL Belong to company code area.

3.  What is posting key? What is its role?

A. It controls the line item of GL entry debit and credit.

4.  What is business area?

A. Organizational unit of external accounting that corresponds to a specific business segment or area of responsibility in a company. Financial statements can be created for business areas for internal purposes. They are primarily used to facilitate external segment reporting across company codes covering the main operation of a company (product line, Branches). The Business area may be the branch of the company or product lines it deals with

5.  while defining chart of account, there is field " manual creaation of cost element" and "automatic creation of cost element". what is it? A. Generally when ever we are creating cost elements we can create some of exependitures manually some automatically so we can create manually cost elements in defining chart of accounts.

6. After creating a customer/vendor, how can we check that under which account group we have configured this customer/vendor?

A. We can check through customer group and vendor group it was created by ours when we are creating  vendor and customer groups.

7. How the system will know that april is your first posting period?

A. Yes the system will find out april was first posting period. While configuring fiscal year we giving april to 1 may to 2, june to 3, like this system will identify april was the first posting period.

8. Define the term "fiscal year" , "posting period  varient" & " field status varient".

A.  FSGV controls the additional account assignments and other fields that can be posted at the line item level for GL a/c. FSGV can be  control at three level i.e.,  1) In OBC4 (ch of a/c’s) - which controls the screen for a particular GL a/c group, 

2) Posting Keys - which controls the screen for a particular posting key transaction is taken, & 

3) Accounting Groups - which controls the screen for a particular account group i.e., customer group or vendor group.

A. Posting period variant which controls posting periods, both   normal and special periods are open for each company code. The posting period is independent of fiscal year variant.

A. Fiscal year is controls the which type year we are following like calendar year, year dependent year,.   

2

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.  

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

1

1.  How can be or in what way baseline date is important in Automatic Payment Program run? 

The Baseline date is used to calculate the due date by taking into account the payment terms. On the APP, the baseline date helps to pick the relevant invoices for payment. During the APP run when invoices are pulled into the run, the system checks the ‘Next Payment Date’ before picking the invoices to be paid. 

2.  Please tell me the procurement cycle how it works?

Procurement cycle – a sales order is placed on a requirement made by a customer, after which it is passed on to create a purchase order (this could either happen based on the requirements on the SO, or a planned SO). the value flow gets passed on to FI at the time of goods movement. In the case of SD, the impact on FI happens only at the time of billing.

 3.  Difference between Depreciation ,Accumulated Depreciation and APC?       What is APC?

Depreciation – a decrease in the value of an asset due to wear and tear  Accumulated Depreciation – the total amount of depreciation calculated on a particular asset.  APC – refers to Asset transactions other than depreciation 

 4.  What is GR/IR?What  journal entries we should pass for this?

The GR/IR – the goods receipt/Invoice Receipt account is used to post to whenever goods that are not yet invoiced have been received or when invoices arrive b4 the the delivery of goods.

During the time between the invoice being created and delivery of goods, there can be a timing difference, in order to accommodate this timing difference, a GR/IR account is maintained temporarily to record the flow .

 5. What are the  accounting  entries take place in MM and SD?

Value from MM to FI is defined in OBYC…. on the material master the flow of values are assigned on the Costing, acctg, etc tabs where the system helps to post the necessary stock values into the appropriate GL accounts. helps to determine, the GL accounts updated when there is a movement of goods. 

SD-FI - VKOA

 6. Can we assign one Controlling area to two different Company Codes (but the company codes having different       fiscal years/different currencies 

Company code should have same financial year,  may have different currencies.

You can assign 2 or more company codes  to one controlling area as long as the chart of accounts are same. Furthermore, if you have different fiscal year variant in the company code, then make sure that the number of period remain the same.

 7.  While posting transaction, can we give cost centre / production order at time.

Yes it is posiiable , but in such situation cost centre will be real and production order is stastical.

If you assign both cost center and Prd Order then since Prod. Order are real co object, Cost center entry would be statistical.

 8.  Which Master data uploads will be done?

The question is not very clear. If you are talking about CO Master data. Then Cost center need to be uploaded. You can use Data Transfer Workbench or write abap for it.

 9.  Can we run Payment Programe giving ( Hdfc  vendor detailes ) City bank in Payment run programe?

Yes can be possible , this can resolved through ranking order and bank optimization in FBZP.

You use use further selection in proposal paramater, if you would like to filter the open item based on the city

10.  What does document header control?

Field status.

11. After entering a document can you delete the entry? Can you change the document?        Which fields’ can/not is changed?

Document header cannont be changed, after posting the document you cannot  change. only if you want to change the document the reseversal entry.

12. What is a special GL transaction?

The transaction other than A/P and A/R is called the special g/l transaction for ex: Bills of exchange, Interest payable , aqusition

13. How do you reverse cleared documents?

By doing reversal posting.

14.  What is base line date? Why is that used? Can this be changed?

For paymentterms it is used. base line date is the due date.

Assets Capitalization routing through CWIP or AuC with IO

Objective

1. To capitalize fixed assets like Plant & machinery, buildings, Furniture & fixtures, IT assets etc. by routing through CWIP with a budget availability check

2. To capitalize assets which are constructed internally.

3. To capitalize all associated costs related to procurement of assets.

4. To account for any exchange gain/loss.

Process Flow

This method is used for capitalizing assets that are constructed and / or procured like Plant and Machinery, Building, Land Development etc. under any project or otherwise.

To be process flow for capitalizing the assets under this method:

i. In CO-IO an internal order under IM Node is created for such activity with investment profile of Auto creation of AuC and budget is allocated to such IO from the IM Node based on individual capex sanctions.

ii. A CWIP Fixed asset for Capital Work-in-Progress (CWIP) type is also created automatically with following details:

· Description of Assets

· Location

· Sub-Location

· Business Area

iii. In MM Module a PO/SO (with account assignment type ‘0’) is raised against the internal order which is detailed in the MM Module specific scenario. Commitment item will be generated against the internal order.

iv. In MM Module GR/Service acceptance is made which is detailed in the MM Module specific scenario. All values are posted to the specific AUC Account (which by nature is a P&L Account). In this step AUC account will be debited with budget availability check from IO and GR/IR account will be credited.

v. In MM Module, Invoice is posted and the difference if any from the GR is posted to the assigned AUC Account.

vi. Debit/Credit Notes stating foreign exchange interest gains or losses received from Corporate is posted against the internal order. However any gain/loss arising out of forward cover taken by Corporate shall not be capitalized.

vii. In case budget availability check fails, no posting can be made to the account.

viii. In case additional budget is required budget supplement can be provided to IO from Head Office.

ix. In the month end these internal orders are settled to Capital Work–in-Progress (CWIP) asset which is already assigned in the settlement rule of the internal order.

x. Whenever the asset is put to use for commercial purposes and a certificate obtained for the same, the Fixed asset master is created with the following information

· Asset Class

· Description of Assets

· Location

· Sub-Location

· Personnel number (In case of Household Assets provided to employees)

· Business Area

· Cost Centers

· Internal order

· Relevant Insurance data

· Depreciation data for the relevant depreciation areas

· Depreciation keys

xi. Whenever the asset is put to use for commercial purposes and a certificate obtained for the same, the Fixed asset master is created with the following information

xii. Settlement rule is modified in the internal order with recipient being the fixed asset(s) created above. In case of multiple assets, the fixed value for each asset or the ratio of distribution of the values needs to be indicated against each recipient.

xiii. Any cost or expense which is identified as the integral part of asset can be capitalised also and can be maintained as sub-number in the original asset.

xiv. Amount accumulated in CWIP is settled through line item settlement to the specific fixed asset(s)

xv. After the entire process as stated above is completed and IO does not have any commitment item and confirmation is obtained from the originator that the capitalization process is complete, the status of the IO is changed to “COMP”. This indicates that asset procurement process is complete.

xvi. Any unutilized budget is not returned, but reported as a variance in the capex reportback.

Expected Results

· CWIP Asset Master is created

· Accounting entries are posted at month-end to CWIP

· Balance in AUC accounts to be zeroised for each month for each business area, except for amounts appearing in certain AUC accounts, which shall be negated by an equivalent offsetting amount appearing in ‘Transfer to Fixed Assets’ account

· Asset Master is created

· Final settlement is posted and capitalization of Asset takes place

Configuring the Interest Calculations Procedure

The following steps enable the configuration to allow users to charge interest on overdue customer accounts. Interest can be calculated by using the line items or overall account balances. SAP keep tracks of the date of the last interest run and stores it in the customer master record.
Step One: create an Interest Indicator.
OB46 - Interest Settlement Calculation Type Int Calc. Type P - calculate interest based on line items. S - calculate interest based on account balances.
Step Two: make the Interest Indicator available to the interest run program.
OB82 - Interest Terms
Step Three: determine the interest rate that will be used by the calculation.
OBAC - Define Reference Interest Rates
OB83 - Enter the Reference Interest Rates Value
Step Four: assign the interest indicator to the reference interest rate.
OB81 - Define Time Dependent Terms
Step Five: determine the how and to which accounts the interest program will post.
OBV1 - Prepare Interest on Arrears Calculation