1.

What is Master Data

Master data is all the data that is mission-critical to the running of a business.
It describes people (customers, employees, and suppliers), places (offices
and locations), and things (products and assets). Master data is typically just
a small percentage of all business data, but it is some of the most complex –
and valuable – data in an organization.
Example of Master Data: GL Master data, Customer/Supplier master data,
Asset master data.
Master data is the type of data without which any transaction
cannot be implemented and therefore it is mandatory for every
organization Master data gives detailed information about the things
that interact when a transaction occurs.
Master data is data that remains unchanged over a period of time. It
contains information that is always needed in the same way. For
example, all personal attributes can be stored in various SAP
standard info types as records with specific validity which are called
Master data.

2 Difference Between SAP HANA and SAP ERP.

SAP S4HANA is an ERP (enterprise resource planning) system that uses
sophisticated technologies including machine learning and AI. It is most
commonly used to integrate and manage business functions and is an ideal
solution for large enterprises. The platform includes supplier relationship
management (SRM), customer relationship management (CRM), supply chain
management (SCM), and product lifecycle management (PLM) functionality.
SAP S4HANA offers three different deployment options:
 On-premises
 Cloud
 Hybrid
SAP S4HANA Features
SAP S4HANA has many valuable key features, including:
 Customizable
 ERP, CRM, SRM, SCM, PLM co-deployed
 High throughput
 Fast analytics and reporting
 Smaller total data footprint
 SAP HANA multi-tenancy
 All data: social, text, geo, graph, processing
 New SAP Fiori UX for any device (mobile, desktop, tablet)
 Unlimited workload capacity
 High-volume transaction processing (OLTP)
  High volume real-time analytical processes (OLAP)
 Service Management
 Digital Boardroom Integration
SAP S4HANA Benefits
Some of the benefits of using SAP S4HANA include:
 Speed: S4 HANA applications leverage speed, context, and data accessibility to ensure
you can stay up to date with rapidly evolving technology.
 Improved performance: With SAP S4HANA, you can plan, execute, or generate reports
and analytics based on live data to increase performance.
 Simplicity: SAP S4HANA’s whole infrastructure was designed with simplification in mind
— from the management of the solution to the administration of the IT landscape. The
solution serves as the digital core for business process simplification and enables the
centralizing of hardware and network resources.
 Cost effective: SAP S4HANA is a cost effective solution. It provides the ability to bring
together all the analytical and transactional capabilities of a variety of systems in one
location, enabling better decision making.

SAP ERP addresses the core business software requirements of midsize and large
organizations in all industries and sectors. SAP ERP includes four individual solutions that
support key areas of enterprise resource planning: human capital management,
financials, operations, corporate services.

3. What is a field status group and why do we need it?

Same as answer 160

4. Provisions come under which side of balance sheet and stock
under which side of balance sheet?
Provisions are listed on a company's balance sheet under the liabilities
section.
Inventory stock is a business asset and the ending balance of inventory
is reported on the company balance sheet under current assets
6. What is Document Type ?
Same answer 158

7. What is Chart of Accounts. Same as Qu no 28. Same as Qu no 51. Same

as Qu no 156. Same as Qu no 48. Same as Qu no 99. Same as Qu no 130.
Chart of Account is the list of G/L accounts. You must assign a chart of
accounts to each company code. This chart of accounts is the operating chart of
accounts and is used for the daily postings in this company code.
You have the following options when using multiple company codes:
<1> You can use the same chart of accounts for all company codes:
 If the company codes all have the same requirements for the chart of
accounts set up, assign all the individual company codes to the same chart of
accounts. This could be the case if all
company codes are in the same country.
<2> In addition to the operating chart of accounts, you can use two
additional charts of accounts:
If the individual company codes need different charts of accounts, you
can assign up to two charts of accounts in addition to the operating chart of
accounts. This could be the case if company
codes lie in multiple countries.

There are 3 types of Charts of Accounts:

Operating chart of accounts
The operating chart of accounts contains the G/L accounts that you
use for posting in your company code during daily activities. Financial Accounting
and Controlling both use this chart of
accounts. You must assign an operating chart of accounts to a
company code.
Group chart of accounts
The group chart of accounts contains the G/L accounts that are used
by the entire corporate group. This allows the company to provide reports for the
entire corporate group.
The assigning of an corporate group chart of accounts to a company
code is optional.
Country-specific chart of accounts
The country-specific chart of accounts contains the G/L accounts
needed to meet the country's legal requirements. This allows you to provide
statements for the country's legal requirements.
The assigning of an country-specific chart of accounts to a company
code is optional.
The operating chart of accounts is shared by Financial Accounting as
well as Controlling. The accounts in a chart of accounts can be both expense or
revenue accounts in Financial Accounting
and cost or revenue elements in cost/revenue accounting.

8. What is Cost Centre ?

Follow answer 94.

10. What is Company Code.

Company Code in SAP is the smallest Organizational unit of external
accounting for which you can create a completely self-contained set of
accounts for transaction posting, besides the statutory financial
statements.
 You can also use a company code to represent a legally dependent
operating unit abroad (commercial place of work) if there are external
reporting requirements including segment reporting for that unit in the
local currency of that country.

All the SAP Finance (FI) related business transactions and evaluations
are represented at the company code level. Because company codes
are the central organizational units of an external accounting system.
You must define at least one company code (per client) to implement
the FI component in SAP S4 HANA Financials for your organization. If
you want to manage the accounting for several independent
companies simultaneously, you can set up several company codes for
the same client.

When you implement other components of SAP along with FI, you
need to create assignments between the company codes and other
organizational units to ensure data transfer between them. For
example, you need to assign one or more company codes to a
company, credit control area, controlling area and so on.

11. What is Business Area?

A Business Area in SAP corresponds to specific business segments of

a company and may cut across different Company Codes (Product
Lines). They can further represent various responsibility areas, such as
Branch Units, plant engineering, automotive, etc. Also, its configuration
is optional (not mandatory).

If you want to create financial statements for business areas, you must
make sure that the Business area field is ready for input in all the line
items.

To post items in a business area, enter the business area when you
enter the business transaction. However, the business area can also
be derived from other account assignments, such as the cost center.
To enable the system to do this, you must define the business area in
the cost center master record.

12. What is Fiscal Year

Fiscal is a time period (usually 12 months) for which a company is

required to provide its physical inventory count and balance sheet.

According to SAP, financial accounting year is referred as “Fiscal

Year”. In SAP fiscal year generally contains total 16 posting
periods, out of these 12 are normal posting periods and 4 are
special posting periods.

Every organization records business transaction in set of books

and they have to close the books in certain period. It may depend
on the company and the country’s policy. For e.g. and all
 companies in India have to close their books on 31st March every
year.

13. What is Fiscal Year Variant?

Same as answer 138

19. Posting Keys for GL.

40: Debit Posting Keys
50: Credit Posting Keys’
20. Creating Customer/Vendor Master Records.
Same as answer 102.
22. Reconciliation in FI.
23. Explain tables in FICO Module
Tables in SAP are a storage space in SAP Database that segments
and stores data module-wise. Say, for example, we enter any data like
Configuration Data, Master data, and Transaction data. Here SAP
Tables in SAP FICO store them properly and in order in the SAP
Database.
There are certain Tables, in SAP that when changed will not affect a
similar Table in other clients. There are known as “Client-Dependent”
Tables. On the other hand, if a change is made in one Table, it is
reflected in a similar Table across various Clients. Then such a Table
will be called “Client Independent”.
There are also other types of Tables known as Internal Tables. These
are standard data type objects which exist only during the “runtime” of
an ABAP program. They are used to perform calculations on subsets of
database Tables. Further, they help us to reorganize the contents of
database Tables according to the user’s needs.

29. What is Account Group.

A chart of accounts contains different types of accounts and you can arrange
these accounts into different account groups.
Multiple accounts can be grouped in the following ways: Cash accounts,
Material accounts, Asset accounts, P&L statement accounts.
By assigning a number range to an account group, you can ensure that
accounts of the same type are within the same number range. The numbers of the
account group intervals can overlap.
 You must enter the account group in the chart of accounts segment of the
G/L account master data. The account group controls the appearance of the
company code segment of a G/L account.

53. What is Field Status.

The field status enables us to control the display and maintenance of the
master data of an account. We can set any one of the following as the status of a
field:
Hide: For fields that you do not use
Display: For fields whose values must not be changed
Required Entry: For fields in which you must enter a value
Optional Entry: For fields that can contain an entry, but are not required

You can set a common field status for all fields of a group.
The field status is generally controlled by the account group. You usually only
use transaction specific controls to specify what can be edited when changing
master data.
There may be instances when you do not want specific fields to be modified by
anyone after the master record has been created. For example, you set the currency
of your cash account to INR, and
you do not want anyone to be able to modify it. In this case, in Customizing for
G/L Accounting, under Define Screen Layout for Each Transaction → Change assign
the status Display to the relevant
field.
For each field, SAP S/4HANA takes the field status definitions from the
account group and the transaction into consideration and uses the one with a higher
priority.
The following order applies in SAP S/4HANA, with decreasing priority:
● Hide
● Display
● Required Entry
● Optional Entry

57. How to Create Master Data.

We can use the following methods to create the G/L account, chart of accounts
segment,and company code segment:
1. Create both segments simultaneously (centrally).
2. Create a chart of accounts segment followed by the company code segment.
3. Copy the following components:
- Copy an individual G/L account: Copy it with reference to another G/L
account.
- Copy the company code segment: Copy the entire company code
segment.
4. Transfer Data: S4/HANA Migration

78. What is Posting Key ?

 Posting Key is defined at the client level. Generally Posting Keys are two-digit
numerical keys.
Posting keys are used either to debit the account or credit account. With
definition of posting keys, we can also control field status of accounts.
The posting key also specifies the following features:
Whether the line item is connected to a payment transaction. You will need
this information to analyze the payment history and create payment notices.
Whether the posting is sales-relevant and the sales figure of the account will
be updated by the transaction. For example, by the posting of a customer invoice.

79. Sort Key.

A sort key is a field in your table that determines the order in which the
data is physically stored in the database. Sort Keys are used to populate the
Assignment number field in the line items
of customers or vendors or general ledgers. The content of this Assignment
number field can be populated in a customer or vendor or general ledger document
when the document is created: either
manually. or automatically by the system. Whenever a document is created,
the Assignment number field in the document line items will be populated
automatically, if the requisite sort keys are
assigned to the customers or vendors or general ledgers master record. For
example, if the sort key is set Posting Date in the business partner master record,
then the assignment field in the
business partner line item is filled with the Posting Date. Similarly, if the sort
key is set to the purchase order number in the business partner master record, then
the assignment field in the business
partner line item is filled with the purchase order number.

88. Posting Periods

Posting Periods are define in Fiscal year Variant. Posting period is a period
within a fiscal year for which transactions are posted. When posting a
transaction, transaction dates will be required to
be in an open posting period. When entering a document, among other items,
you enter the posting date – the system automatically determines the posting period
and fiscal year based on the posting
date entered. To prevent documents from being posted to an incorrect posting
period, you can close certain posting periods.
Usually, the current posting period is open and all other periods are closed. At
the end of a period this period is usually closed and the next period is opened.
During period closing, you open special periods for closing postings. During
closing, two period intervals must be open at the same time. Therefore, two period
intervals can be entered in the
posting period table. In the document header, the periods assigned to the
account type "+" are checked.
 This is the first check. The account type.+. must therefore be open for all
periods that are supposed to be open for all other account types. The posting period
variant must contain at least the account
type +.
Posting periods can be handled differently for different account types, that is,
for a certain posting period, postings to customer accounts may be permitted while
postings to vendor accounts may not.

94. What is Profit Centre and Cost Centre?

A profit centre is an organizational unit in SAP that reflects a management-

oriented structure of the organization for the purpose of internal control. You can
analyse operating results for profit centers
using either the cost-of-sales or the period accounting approach. The main
aim of creating a Profit Centre in SAP CO is to analyse the cost of a product line or a
business unit.
You can also generate P&L accounts according to a Profit Centre and also
generate balance sheets, however a Profit Centre should only be used for internal
reporting purpose. The key components of
a profit centre include – name of the profit centre, the controlling area under
which it is assigned, time period, person responsible for the profit centre, standard
hierarchy, etc.
Cost centres are used for spend analysis in all sourcing documents. You can
generate reports to show the activity in your cost centre. A cost centre is an
organizational unit or department (sales,
services, IT, finance, marketing, engineering, and so on) that is used to
allocate the cost of a business activity to an existing budget. Before using Cost
Centre Accounting, we need to activate it
in Controlling Area. Cost centre represents an area of responsibility, that is
an organizational unit within an organization. We have to assign all cost centres to a
cost centre category to create cost
centre Master Data. We use the cost centre categories in activity planning
and default specific characteristics when creating a cost centre.

96. What is Secondary Cost Element?

Secondary Cost Elements are those which are created only in controlling and
does not affect the financials of the company. It is used for internal reporting only.
The postings to these accounts do not
affect the Profit or Loss of the company. It can be used for internal allocation
purpose. Cost Elements track the type of costs or spend.
The following cost element categories can be used for secondary cost
elements :
 21: Internal
settlement. ...
 31: Order/project
results analysis. ...
  41: Overhead rates. ...
 42: Assessment. ...
 43: Allocation of
activities/processes. ...
 50: Incoming orders:
sales revenues. ...
 51: Incoming orders:
other revenues. ...
 52: Incoming orders:
costs.

97. What is Open Item Management

Open item management ensures that all items that have not yet been
cleared are available in the system. Open items arise from every posting
transaction and reflect unfinished business
transactions. For example, an invoice item that has not yet been paid is
recorded as an open item in the account until it is paid and cleared. Open item
management
enables you to check which receivables and payables are outstanding. In
You can only move a document to the cold area of the database after all the open
items have been
cleared. You can see whether an item has been cleared in the line item
display or document display. The total of the items involved in the clearing
transaction must be zero. The account balance is
therefore always the total of the open items. Customer and vendor accounts
are always managed in this way. This allows you to monitor your outstanding
receivables and payables at any time. You
have to define open item management for G/L accounts in the master record.
Open items arise from every posting transaction in a contract account and
reflect unfinished business transactions.
Open item management enables you to check which receivables and payables
are outstanding.

99. Types of Chart of Accounts.

Fallow Answer 7.

102. How to Create Customer/Vendor

In SAP S/4 HANA, the business partner is the master record with which you
manage customers and vendors. The system offers a single point of entry to create,
edit, and display master data for
business partners, customers, and vendors.
Business Partner Categories
 The term “business partner category” is used to classify a business partner as
a natura person (for example, a private individual), group (for example, community of
heirs), or
organization (legal entity or part of a legal entity, such as a department of a
company). When a business partner is created, the business partner category must
be selected (required entry).
Assignment of the business partner category is static and cannotbe changed
once the business partner has been created.
Business Partner Roles
A business partner can have several roles, such as a contract partner (FI-
CA), FI Vendor (FIAP), FI Customer (FI-AR), Customer (SD), Supplier (MM),
prospect (potential customer), or
business partner (general). In general, a business partner (BP) role
corresponds to a business context in which a business partner can appear and
provides the application-specific data.
You can create a business partner in one or more BP roles. Central data such
as name, address and bank details only have to be created once.
Business Partner Role Grouping
Using the SAP Business Partner, it is possible to group roles. If the roles are
grouped, one person can create, in one step, one customer or business partner in
different roles, for
example FI (FI-Customer) and SD (Customer). With this functionality a
centralized maintenance of Business Partners is feasible. Data records for all areas,
for example Financial Accounting, Sales
and Distribution, and Materials Management can be created at once.
Business Partner Grouping
Each business partner has to be assigned to a grouping when you create the
business partner. The grouping determines the number range (external or internal).
You cannot change
the assignment afterwards. You can define the groupings, their descriptions,
and the associated number range in customizing.

108. Chart of Accounts Refer Qu. No 7.

109. Account Group Refer Qu No 29.

110. Field Status Group

Field status group is assigned to GL account. At the time of GL document

posting through field status group, one can define a field as optional, suppressed, or
mandatory.
All these field status groups are clubbed to a field status variant and the Field
status variant is assigned to a company code. With this, field’s status groups from
fields status variant can only be assigned
when a General Ledger account is created for a company code.
 Suppress − The field is hidden on the screen.
  Optional − The field is available on the screen, you can keep it blank or
fill it.
 Require − The field is available on the screen, and you have to fill it.
 Display − The field is available on the screen, but it's grayed out, you
cannot fill anything in here.

If document is posted in the subledger, the field status group of

Reconciliation account is used. \

111. APP Configuration and T-Code.

Tcode is FBZP.

1. Set Up All Company Codes for Payment Transactions

Here you make specifications for all company codes involved in payment
transactions.
For each company code, you make the following specifications:
· Paying company code- You assign a paying company code to each
company code. This means that you can have one company code process payment
transactions centrally for several company codes.
· Cash discount and tolerance- The payment program uses these
entries to determine the cash discount strategy for the company code.
· Special G/L transactions- Specify which special G/L transactions
are to be settled for customers and vendors.
F = Down payment request
A = Down payment on current assets

2. Set Up Paying Company Codes for Payment Transactions

Here you make the following specifications for the paying company codes:
Data for controlling the payment program- Here we specify the minimum
amount for which an incoming or outgoing payment is created. If you do not
want exchange rate difference to be generated when
the payment is in foreign currency you need to select the parameter. If you
want to make separate payment for each reference you need to select the
parameter.

3. Set Up Payment Methods per Country for Payment Transactions

Here you specify which payment methods are to be used in each country.
The following parameters are entered:-
1) whether it is an outgoing payment or incoming payment
2) payment classification – check, bank transfer
3) What master data specification required – address required, bank details
required etc.
4) Document type is attached
5) Which currencies are to be permitted?

4. Set Up Payment Methods per Company code for Payment Transactions

 Here you specify which payment methods can be used per company code
and determine the conditions under which a payment method should be used.
Specifications for foreign/foreign currency
payments

5. Set Up Bank Determination for Payment Transactions

Here you define the following:

Ranking order of banks
You specify which house banks are permitted and rank them in a list.
Bank accounts
For each house bank and payment method and currency, you specify which
bank account is to be used for payments.
Available amounts
For each account at a house bank, you enter the amounts that are available for the
payment run. You enter separate amounts for incoming and outgoing payments.
Specifying available amounts enables you to
control which bank account is to be used for payments. You can specify the
amounts depending on the value date at the bank.

Value date
You specify how many days elapse between the posting date of the payment run
and the value date at the bank, dependent on the payment method, bank account,
payment amount and currency.

115. Park Document and Hold Document Same Qu. 125

Park Document- SAP provides the functionality to park and hold documents
in Financial Module. A parked document in SAP is a document saved but not yet
posted to general ledger accounts. Parked documents can be edited. SAP puts a
limit on the fields that can be edited in a parked document. SAP document parking
allows dual control of the document hence dual principle can be applied. Two
separate users can be involved in the processing of a document. The first user will
park and then the superior will verify and post.

The document parking functionality can be used in accounts payables, accounts

receivables and general ledger accounting.

The system will generate a document number using a document type the same way
it does for posted documents.

Hold Document- When you are entering data, you may be interrupted, or you
may not have all the data you need for entering a document, for example bank
charges or the appropriate cost center.
In this case, you can temporarily save the data you have
entered, and then continue with the document entry at a later time. If you want the
system to hold a document, it does not
 have to be complete. Account balances are not updated
and the document data is not available for evaluation. A document number is not
assigned.

119. SAP Organizational Structure

Organizational Levels
The structure of an enterprise is represented in the SAP R/3 System by the
following organizational levels:
Client - A grouping or combination of legal, organizational, business
and/or administrative units with a common purpose. Example: a corporate group.
Company code- This level represents an independent accounting unit within a
client. Each company code has its own balance sheet and its own profit and
loss statement.Example: a subsidiary company, member of a corporate
group.
Plant- Operational unit within a company code. Example: production facility,
branch office.

Purchasing organization- An organizational unit responsible for procuring

materials or services for one or more plants and for negotiating general
conditions of purchase with vendors. The purchasing organization assumes
legal responsibility for all external purchase transactions.
Purchasing group- The purchasing organization is further subdivided into
purchasing groups (buyer groups), which are responsible for day-to-day
buying activities. A purchasing group can also act for several purchasing
organizations.

SALES ORGANIZATION- The sales organization represents the selling unit in

the legal sense. It is responsible for example for product liability and other
rights of recourse; customer deliveries; business partner contacts; and direct
mailing campaigns. It also helps us to offset business operations internally.
Function of Sales Organization, • Distributing goods and services. •
Negotiating sales conditions. • Product liability and rights of recourse.

SALES DISTRIBUTION CHANNEL- The distribution channel represents the

channel through which saleable materials or services reach customers.
Typical distribution channels include wholesale, retail and direct sales.
Function of Distribution Channel, •Through which materials reach the
customer. • Represents the distribution of goods and/or services to customer.
• Ex: Whole sale trade, retail trade, internet trade and so on.

SALES DIVISION- In the SAP System you can define a division specific
sales organization. Product groups, i.e. divisions, can be defined for a wide-
ranging spectrum of products. Function of Distribution Channel: •Represents a
product line, Ex: Motorcycles, Spare parts, Services and so on.

SAP SALES AREA - SD is organized according to sales organization,

distribution channel and division. A combination of these three organizational
units forms the sales area. Function of Sales Area: •Combination of sales
 organization, distribution channel, and division. •Defines the distribution
channel, that a sales organization uses to sell products of a certain division.

SAP SALES OFFICE - Geographical aspects of the organization in business

development and sales are defined using the term sales office. A sales office
can be considered as a subsidiary. A sales office establishes contact between
the firm and the regional market. Function of Sales Office: •They can be used
for reporting purposes. Sales offices are optional.

SAP GROUP - The staff of a sales office may be subdivided into sales
groups. For example, sales groups can be defined for individual divisions.
Function of Sales Group: •They can be used for reporting purposes.
SAP SHIPPING POINT- Shipping points, are responsible for scheduling and
processing deliveries to customers, as well as replenishment deliveries to our
own warehouses. Function of Shipping Point: •Shipping is an integrated
module of SD processing. •The shipping point is the highest-level
organizational unit of shipping, that controls the shipping activities. •Each
outbound delivery is processed by exactly one shipping point.

122. Who are our Business Partner

SAP Business Partner is a person, organization, group of persons, or group of

organizations that a company has a business interest in. One would use
this business object for a variety of business transactions.
Business Partners are created in Categories. Categories determine the fields
available for general data entry. There are 3 different categories of Business
Partners:
 Organizations
 People
 Groups
126. What is Recurring entry?
A recurring journal entry is a business transaction that is repeated regularly, for
example, the deferral of costs or revenues for an invoice where the same amount is posted
over a period of 12 months. It consists of a
template journal entry and a recurrence rule attached to it. A recurring journal entry
by itself is not a journal entry; rather, you trigger the posting of journal entries from it.
You can copy an existing journal entry to use as a template to create other recurring
journal entries to which you want to apply the same rules.
127. What is AR and AP

The Accounts Payable application component records and administers

accounting data for all vendors. It is also an integral part of the purchasing
system, where deliveries and invoices are managed according to vendors.
The system automatically makes postings in response to the operative
transactions. Payables are paid with the payment program. The payment
program supports all standard payment methods (such as checks and
transfers) in printed form as well as in electronic form (data medium exchange
 on disk and electronic data interchange). This program also covers country-
specific payment methods. Postings made in Accounts Payable are
simultaneously recorded in the general ledger where different G/L accounts
are updated based on the transaction involved (such as payables and down
payments). The system contains due date forecasts and other standard
reports that you can use to help you monitor open items.
The Accounts Receivable application component records and
administers accounting data of all customers. It is also an integral part of
sales management. All postings in Accounts Receivable are also recorded
directly in the general ledger. Different G/L accounts are updated depending
on the transaction involved (for example, receivables, down payments, and
bills of exchange). The system contains a range of tools that you can use to
monitor open items, such as account analyses, alarm reports, due date lists,
and a flexible dunning program.

129. Payment Terms

Terms of payment are conditions agreed between business partners for the
payment of invoices. The conditions define the due date and the cash
discount offered for payment of the invoice within a certain period. Some
terms of payment are predefined in the system; you can add new ones if
necessary.
Terms of payment enable the system to calculate a cash discount and
invoice due date.In order to do this, the system needs the following data:
. Baseline date: The date from which the terms are counted.
. Cash discount terms: The terms for which cash discount is granted.
. Cash discount percentage rates: The percentage rate used to calculate
cash discount.
When you process a document, you enter the terms of payment so that the
system can calculate the required conditions of payment.
If you have entered terms of payment in the master record, these are
proposed. You can also enter or change them during processing.

130. What is chart of accounts? How many are there? Same as answer 7

131. Which one is on the top in hierarchy, company, or company code?

Company
132. What is account receivable?
Same as answer 127.
133. What is reconciliation account
Reconciliation accounts are G/L accounts to which postings are made
automatically whenever a business transaction is entered on a subledger
account (such as accounts receivable, accounts payable, or fixed
 assets). Reconciliation account in SAP is a general ledger account assigned
to the business partner master record to record all transactions in the sub
ledger.
You define a G/L-account as a reconciliation account by entering one of the
following account types in the field Reconciliation Account for Account Type:
. D for Accounts Receivable
. K for Accounts Payable
The reconciliation account is then only valid for the account type specified.
You cannot post amounts directly to reconciliation accounts.
134. About dunning process
Purpose: When the customer misses the payment for the outstanding invoice
within specified payment due date. The dunning letter is generated via sap
program and send at customer address for reminding the customer outstanding
payment
Requirement: The dunning system enables to trace liable customers who have not
paid their open invoices within a given time span. It enables you to handle the
process from, for example, sending a reminder to customers of their
outstanding payments through to referring such customers to collections
agencies.
CONFIGURATION:

1. Define Dunning Procedures

We can create Dunning text, Dunning level, Dunning Charges and Company code
assignment in the dunning procedure.
2. Create Dunning Interval in days to Dunning Procedures
We determine at which intervals the allocated accounts are to be dunned for every
dunning procedure. During every dunning run, the system then checks whether the
run date is at least this number of days since the date of the last dunning run.
3. Define Dunning Levels to Dunning Procedures
In this step, we determine number of dunning level set up in dunning procedure.
4. Define Dunning Charges to Dunning Procedures
In this step we add the dunning charge as per the dunning level. This is like an
administration charge to dun the customer. Currency have to assigned during adding the
dunning charge.
5. Define Minimum Amounts to Dunning Procedures
Minimum Amount are customized to charge the administration charge to customer
with reference to dunning level
6. Assign Dunning Texts and forms to Dunning Procedures
For inserting dunning forms, click Dunning Texts and assign the required forms for
the dunning text with reference to dunning Level. In case the customer has different
language and the form contains different language, then please follow the document
attached to translate the source language to target language.
7. Define Dunning level to Dunning Procedures
Click the dunning levels and input days in Arrears for each dunning levels.
8. Assign Company Code to Dunning Procedures
We have assigned company code with reference to Dunning Level and not by
Dunning area
PREPARATION OF CUSTOMER MASTER DATA FOR DUNNING PROCEDURES:
1. In this step, we insert Dunning procedures in the customer master
(Correspondence tab).
2. We have to maintain the Language field in the customer master data (Address
tab) to print the Dunning Notice as per there language, Dunning Text should also
be maintained in reference to dunning level. So that the content of dunning notice
will be different to dunning level.
 3. For dunning run, this transaction should be performed by F150. This is a month
end duty. Please insert Dunning date, Document posted up to date, Company code,
Customer Number and save
138. Fiscal year variant
Fiscal year variant contains the number of posting periods in a fiscal year and
the number of special periods. You can define up to 16 posting periods in a fiscal
year in the controlling component CO.
You need to specify the fiscal year variant for each company code. When you
create a controlling area, you also need to specify the fiscal year variant. The
fiscal year variant contains the definition of posting periods and special
periods. Special periods are used for postings that are not assigned to time
periods, but to the business process of .year-end closing.. In total, you can
define 16 periods. The system derives the posting period from the posting
date. If the posting date falls within the last normal posting period, you can
post the transaction in one of the special periods.
139. Year Dependent fiscal year variant
A fiscal year variant has to be defined as year-specific if one of the following
conditions is fulfilled: The start and end dates of the posting periods for some
fiscal years are different to the dates for other fiscal years. Some fiscal years
use a different number of posting periods. If all of the fiscal years of a fiscal
year variant have the same number of posting periods, only the different
period dates for the different years have to be defined
If one year of a fiscal year variant has less posting periods than the others, it
is called a shortened fiscal year (see example on the right). This could be
required, for example, if closing has to be carried out before the end of the
normal fiscal year; (for example, if the beginning of the fiscal year should be
changed or if the company was sold). You have to define the shortened fiscal
year and its number of posting periods before you can define the period
dates. For this year, you can only assign a lower number of posting periods.
142. What are there in Financial Statement Version.

Financial statement versions helps to group all the

related accounts to get the Balance sheet and Income
statement for the purpose of reporting. SAP systems
uses the financial statement version (FSV) that
assigned to the company code when creating the
balance sheet and P&L reports.
You can maintain financial statement versions as per
organization requirements. SAP systems has come
with standard financial statement version for all
countries. So you can use those standard version if
your business requirements are limited or you can
create new FSV as per business requirements.
 On change view “Financial Statement
Versions” Overview screen, a list of standard versions
are displayed. Here you can create new versions by
copying from existing standard version or creating
new version with your own settings.
Click on “New entries” to maintain new FSV.
On new entries screen, update the following details.
Fin. Stmt.Version: –

1. Enter the new four digits key that identifies the

financial statement versions in SAP.
Name: –

1. Update the descriptive name of the FSV.

Maint. language: –

1. Update the language key, in which language your

financial statement to be maintain.
Chart of Accounts: –

1. Enter the COA that you want tag to financial

statement version.
Group Account number: –

1. Select this indicator to assign account number from

the group chart of accounts. This configuration is
valid only if we are using consolidation
functionality.
148. Chart of Account
Follow answer 7.
153. What is Automatic Payment Program.
Same as answer 111.
154. What is Sort Key.
Same as answer 79.
155. What is Reconciliation Account
Same as answer 133.
156. What are the types of Chart of accounts?
Same as answer 7.
157. What is Line Item display
 Transaction figures are the totals of line item postings on the debit or credit
side. The balance is the difference between the debit and the credit
transaction figure. The Line Item Display. field is a control field in the company
code segment of an account.
For accounts without. line item display., only the transaction figures are
updated when documents are posted to these accounts. When a user wants
to look at this account online, they can only view the balance.
For accounts with. line item display. the most important data from the
posted line items is stored in a special index table. Because this data is also
stored in the documents, it is redundant and needs additional storage and
system time.
158. What is Document Type
The document type controls the document header and is used to
differentiate the business transactions to be posted, for example, vendor
invoices, customer payments, and so on. Document types are defined at
client level and are therefore valid for all company codes. The standard
system is delivered with document types that can be changed or copied.
Document types define the following:
1. Number ranges for document numbers
2. Account types permitted for postings
Document types also define the following:
3.The field status of the document header fields. Document Header Text. And
Reference Number.
. 4. Whether invoices are posted with the net procedure
159. What is posting key?
Posting keys are defined at client level.
The Posting Keys has control functions within the line items. It controls:
To which type of account the line item can be posted- Asset, Customer,
Vendor, Materials, GL
If the Line item posted as debit or credit.
The field status of line items.
In addition to the above-mentioned control functions, the posting key specifies
the following:
Whether the line item is connected to a payment transaction or not. This
information is required for analysing the payment history and creating payment
notices.
Whether the posting is sales-relevant and the sales figure of the account is
to be updated by the transaction, for example, by the posting of a customer invoice.
160. What is Field Status Variant
Field status variant is the collection of field status groups. Field status group
refers to status of all fields which are available for input while document
posting. Field status variant is assigned to company code. All field status
groups which belong to field status variant are available for assignment to GL
master in the company code. Field status group is assigned to general ledger
account. When document is posted to the GL account, then input fields
behave as per their status in field status group.
 Suppress: The field will not appear in input screen while posting document.

Required: Document can not be posted without providing input in the field.

Optional: Document can be posted with or without providing input in the field.

161. What is Master Data

Master data is all the data that is mission-critical to the running of a business.
It describes people (customers, employees, and suppliers), places (offices
and locations), and things (products and assets). Master data is typically just
a small percentage of all business data, but it is some of the most complex –
and valuable – data in an organization.
Example of Master Data: GL Master data, Customer/Supplier master data,
Asset master data.
Master data is the type of data without which any transaction
cannot be implemented and therefore it is mandatory for every
organization Master data gives detailed information about the things
that interact when a transaction occurs.
Master data is data that remains unchanged over a period of time. It
contains information that is always needed in the same way. For
example, all personal attributes can be stored in various SAP
standard info types as records with specific validity which are called
Master data.
164. Document Splitting
In SAP the document splitting is the most powerful tool is widely and most
commonly used. With this function the document splits the line items based
on the “Characteristics” we define in system. Often this function is used to get
the financial statements correctly for segment reporting.
Concept can be explained of document splitting with the help of one of the
most basic business transaction as “Vendor Invoice”. Suppose we have
vendor invoice as below which consists of two expense line items say 10,000
in total with 1,000 of tax component which sums to 11,000.
1. Expense Item 1 for 8,000 where it is assigned to PC – X
2. Expense Item 2 for 2,000 where it is assigned to PC – Y

Account Amount Profit Centre

Vendor A/c 11000 cr

Expenses 1 8000 dr PC-X
Expenses 2 2000 dr PC-Y
Input Tax 1000 dr
If any person is responsible for PC – X wish to analyze the transactions
performed for PC – X, but unfortunately the user can’t – because of, if you
look at the transaction the “Vendor Balance” and “Input Tax” is cumulative and
hence is not assigned to any of the profit centre either X or Y.
Now if you look at the transaction above it represents that the total expense is
distributed in the ratio of 80% and 20% and same of Profit Centre of X and Y.
So base to this the Vendor Balance and Input Tax should also have split
according to 80%-20% rule.
 The system should have posted the document as per below financial
transaction entry in system –
Account Amount Profit Centre

Vendor A/c 8800 cr PC-X

Expenses 1 8000 dr PC-X
Input Tax 800 dr PC-X
Vendor A/c 2200 cr PC-Y
Expenses 2 2000 dr PC-Y
Input Tax 200 dr PC- Y
Okay so the conclusion for whole exercise is, if the user can post the
document as above, the reporting will be pretty particuar and balanced and there
won’t be a problem – issue is re-solved.
Passive Splitting – This type of splitting is mostly occurs when the payment
transaction is posted for a vendor invoice. Now system splits the payment
document bases on how the vendor invoice was split in place already.
 Active Splitting – In Active Splitting the document is split according to
mySAP ERP predefined rules. SAP almost supports all the business process
transactions but if it doesn’t suit to any requirement the own splitting rules can
be created.
 Zero Balancing Splitting – When the amounts within financial documents
are not able to balance out to Debit of Profit Centre and Credit of Profit Centre
which does not Net Off as its own, SAP then automatically generates new line
item to balance the document.
165. What is APP.
Follow answer 111.