SAP FICO ( EPISODE - 15 )

Dulal: - Sir, in the basic settings, when we are defining a company by selecting the ‘New Entries’ button, there is a form, which we need to fill up. Which are the mandatory fields in this form?

Nilkamal: - The most important fields are the ‘Company ID’, ‘Company Name’, ‘City’, ‘Country’ and the ‘Currency’. Here the Currency field will be that currency in which the transaction will take place. For and Indian company, the currency will be ‘INR’. Each Company should have a unique 6 digit alphanumeric ID as their company ID. It can be computer generated also, but it has to be unique one. Besides these mandatory fields, there are other fields like ‘Street Name’, ‘P.O.Box’ and ‘Postal Code’. Always remember that in any setting of real-life SAP projects, you are bound to provide the address of registered office, where the Board of Directors of that particular company is posted.

Paul: - We filled up the entire form and after submitting it, we are finding Prompt Bar, which shows a message ‘View Maintained Date’ and in its corresponding field, it is written as V_T880.

Nilkamal: - Don’t worry about that. Just go ahead. Always remember that all the saved information or data are stored in a table named as T880. This table can be viewed by the ABAP Programmers to do some editing in the future, if required so, for the client’s customization. Now, we will do the 2^nd basic setting, which is ‘Define Company Code’. Company Code is the legal entity for assigning a code for a company, which falls under Section -III.

Rinky: - I am not getting it, Sir. What is the exact definition of Company Code?

Nilkamal: - Ya, I know, you will not understand the legal aspects of a company code at this point. Ok, let me define the company code in simple words. A Company Code is the smallest organizational unit for which a complete self-contained set of accounts can be drawn up for the purpose of external reporting.

Manoj: - External reporting? What kind of reporting is that?

Suhash: - Arrey, yaar. External reports are those reports, which are solely made for the shareholders, Government Authorities, Tax Authorities, Substantial Dividend Holders, Bankers and Financiers.

Nilkamal: - Yes, you are right, Suhash. But, can anyone in this class tell me that what are the contents of an external report?

Chaitanya: - Sir, I think that the process of external reporting involves recording of all transactions and generating all supporting documents for financial statements such as Balance Sheets and P&L accounts.

Nilkamal: - Hmm…you are correct, but you missed out one important word. That word is ‘entity’. External report varies in terms of ‘entity’. The concept of entity is the most important factor, when you are preparing an external report. If you are an individual businessman, then your external report for your clients will be different from the external reports created by a Legal Entity. Private Limited Company, Co-operative Society, Corporation, Hindu Undivided Family (HUF) and Artificial Person are legal entities. The path for defining the company code is: - SPRO -> SAP Reference IMG -> Enterprise Structure -> Definition -> Financial Accounting -> Edit, Copy, Delete, Check Company Code.

Paul: - Sir, after defining the company code, we need to assign this code to the company name?

Nilkamal: - Of course, yes. Unless you assign the company code to the company, how can you generate an external report for that particular company? The path for assigning Company Code to Company is:- SPRO -> SAP Reference IMG - > Enterprise Structure -> Assignment -> Financial Accounting - > Assign Company Code to Company - > Select ‘Position’ button -> Enter Company Code -> Enter Group Company Name/ Company Column. We will end here today. In the next class, we will do the 4^th basic setting. Good bye for today.