In SAP FI, If customer misses the payment for the outstanding invoice by payment due date You can generate dunning letter using SAP FI and send it to 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.
The dunning system covers below documents −
T-code: FD32 is used to define the credit control area in SAP FI.
Posting keys determine whether a line item entry is a debit or a credit as well as the possible field status for the transaction. Posting keys are SAP delivered. If u want changes like making additional fields optional on payment type posting keys then the best possible action is to copy the posting key that needs to be modified and then modify it.
The Special periods in a fiscal year variant can be used for things like posting audit or tax adjustments to a closed fiscal year.
The FI-Asset Accounting (FI-AA) component is used for managing the fixed assets in FI system. In Financial Accounting, it serves as a subsidiary ledger to the General Ledger, providing detailed information on transactions involving fixed assets.
Integration with other components − As a result of the integration in the SAP System, Asset Accounting (FI-AA) transfers data directly to and from other SAP components.
A controlling area may include one or more company codes which must use the same operative chart of accounts as the controlling area. A Controlling Area can contain multiple company code assignments but a single company code can be assigned to only one controlling area.
Document type is the identifier of differentt account transactions like SA for G/L,AA for Asset Accounting etc.The doc. Types controls things like type of the account that can be posted to, the number range assigned to it, and required doc header fields.
Field status groups control the additional account assignments and other fields that can be posted at the line item level for a G/L account.
Account must be managed on the open item management. This tick is there in the General Ledger Master Record called open item Management. it helps you to manage your accounts in terms of cleared and uncleared items. A typical example could be GR/lR Account in SAP(Goods Received/invoice Received Account).
When you change a master record, the system logs these changes and generates change documents. For each field, it stores the time of change, the name of the user, and the previous field contents.
You can display all the changes for the following −
For several vendor master records, following changes are displayed separately −
Common Document types Key are −
The Posting period variant controls which posting periods, both normal and special, are open for each company code. It is possible to have a different posting period variant for each company code in the organization. The posting period is independent of the fiscal year variant.
There are various G/L reports that can be generated in SAP FI. Most common are:
SAP FI Accounts Receivable component records and manages 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).
Exchange Rates are used to define relationship between two currencies and also to maintain exchange rates are used to translate an amount into another currency.
You define exchange rates in the system for the following purposes −
Posting and Clearing : To translate amounts posted or cleared in foreign currency, or to check a manually entered exchange rate during posting or clearing.
Exchange Rate Differences : To determine gains or losses from exchange rate differences.
Foreign Currency Valuation : To valuate open items in foreign currency and foreign currency balance sheet accounts as part of the closing operations.
Shortened Fiscal Year: a financial year, which has less than 12 periods.
Tolerance group stores Posting amount defaults. Tolerance groups are assigned to User ID’s that ensures only authorized persons can make postings.
fb50,f-02 and others could be used for adjustments. These adjustments are to correct any financial representation that has already been booked into the accounts.
Sales Returns in SAP FI is used to manage full products that the customer has returned due to a complaint. These are used in consumer good industry.
All returns are related to quality defects and not incorrect deliveries. The path that the returned merchandise takes often has to be tracked in detail. Returned item has to be sent for inspection.
A company is the organizational unit used in the legal consolidation module to roll up financial statements of several company codes.The Company Code is the smallest organizational unit for which a complete self-contained set of accounts can be drawn up for purposes of external reporting.
Once the company code is live this check box helps prevent deletion of many programmes accidently. This check box is activated just before go live.. Accounts Receivable and Accounts payable.
In SAP FI, you can also post outgoing partial payments for vendor. Partial payment from vendor will be open as open item and no clearing document will be generated.
In SAP FI, you can also post partial payments from customer. These partial payments are posted as separate open items.
Customer can see clearly what all invoice has been issued to customer and what payments he has made. But it keeps the multiple open items, until the invoice is fully paid/ cleared.
Example : There is a customer with an outstanding amount of 1500 and makes a payment of 500 as partial payment then there will two separate open items of 1500 Debit and 500 Credit in FI system and there will be no clearing document is created.
Validations are used to check settings and return a message if the prerequisite check condition is met. Substitutions are similar to validations; they actually replace and fill in field values behind the scenes without the user’s knowledge unlike validations that create on-screen msgs to the user.
The Controlling Area is the central organizational unit within CO module. It is representative of a contained Cost Accounting envt where costs and revenues can be managed.
No. Business area is at client level. Which means other company codes can also post to the same business area.
Credit control in FI is used to check the credit limit for the customer and it can use one or more codes. It is used for credit management in Application components- Account Receivable (AR) and Sales and Distribution.
The credit control area is determined in the following sequence −
One or more Operative Chart of Accounts can be assigned to a company code.
A COA must be aasigned to a company code. This COA is the operative COA and is used in both FI and CO. One Chart of Account can be assigned to many Company codes i.e., Multiple company codes can either share the same or have separate COA. But a company code (Country specific Company code or International Company code) can have a country specific COA also along with Operative COA. The link between the regular COA and the country COA appears in the alternate number field of the G/L master record.
Eg: If a company’s subdidiaries are located in both US & Mexico. We need to configure 2 Company codes – one for US and another for Mexico,for eg U100 and M10@The same way we create 2 COA’s one for US & one for Mexico, USCA and MXCA. Mexico has different govt reporting requirements than the US so we will need to define a company code specific to Country Mexico and also create a country specific COA to be used, in addition to normal COA. In tcode OBY6(Comp Code Global Parameters) of CC M100 we define normal COA i.e.,USCA in Chart of Accounts field and MXCA in Country Chart/Accts field.
The customer and vendor code are at the client level. That means any company code can use the customer and vendor code by extending the company code view.
Fiscal Year is a period of 12 months and SAP provides 4 special periods to posting adjustment Entries. Fiscal year determines posting periods. Posting periods are used to assign business transactions. Fiscal year may be year dependent or year independent.
There are loads of tables that get copied over when copying co codes. This might be incomplete in a manual copy, and hence the manual route is not advisable.
In SAP FI, month end closing involves activities in posting a closing period. You can carry out the following activities as part of month-end closing −
Open and close posting periods.
You close one or more posting periods in the past for posting, and permit posting to be made to one or more current or future posting periods.