SAP FICO ( EPISODE - 27 )

Nilkamal: - to successfully deal with General Ledger in SAP FICO, we need to ask some questions to ourselves to make the process look smooth like butter. The first question is that how to open a G/L account and then post a transaction? After posting a transaction, how we should view a document as well as a G/L Account? Then as an accountant or a Finance Manager, you need to do Document Processing and Management of Accounts. Also, you need to do foreign currency Postings if it is MNC or it deals with foreign exchange.

Suhash: - What is Document Processing, Sir?

Nilkamal: - It is just about how you will process a document. The different ways of Document Processing are: - Holding of a document, parking of document, Recurring document and Sample document. Similarly, in Management of Accounts, there are 4 steps: - Open Item Management, Blocking of G/L Account, Changing G/L Account and Reversals. Now, let us focus on how to open a G/L Account. The path is: - SAP Easy Access -> Accounting -> Financial Accounting -> General Ledger -> Master Records -> G/L Accounts -> Individual Processing -> FS00 – Centrally. Here, the transaction code is FS00.

Paul: - Sir, we can see a form in the screen, which shows two rows. One is for G/L Account Number and another one is for Company Code. The Company Code, we know, but what will we enter for the G/L Account Number?

Nilkamal:- Do you remember that for the transaction code :- OBD4, we configured LIABILITY (L) in the range of 100000 – 199999, for ASSET(A) the range is 200000-299999, for INCOME (I) the range is 300000-399999 and for EXPENSE(E) it is 400000-499999. As per the type of accounts, we will enter an account number within that defined range. That is, if the account is of liability type, then we will enter 100100 or any other number within 100000 to 199999 but we cannot enter any number within the range of 200000 to 499999.

Rinky: - Below these two rows in this form, there are some button types. What are these, Sir?

Nilkamal: - These are not buttons. These are known as Views. There are 6 types of views and they are:- Type/Description, Control Data, Create Bank/Intent, Keyword/Translation, Information at Chart of Accounts Level and Information at the Company Code Level. Now, tell me, what you are viewing, when you are clicking on the View ‘Type/Description’ tab.

Dulal: - There are several rows in the form. They are: - ‘Control in Charts of Accounts’, ‘Types of Accounts’, ‘Description’, and ‘Consolidation Data in Charts of Accounts. What do we need to select for these rows or labels, Sir?

Nilkamal: - The ‘Control in Chart of Accounts’ can be of four types: - LIABILITY Expense, INCOME Expense, ASSETS Expense and EXPENSE Expense. Whatever you will select, it should abide by the accounting norms. Suppose if it is a Liability account, then the ‘Types of Account’ will be of P&L accounts type but not the Balance Sheet type. So, be careful, while selecting the radio button. If you commit a mistake in this case, you can only edit before any G/L post. After that, you cannot edit the setting of ‘Types of Accounts’. For the ‘Description’ label, the short text has the limit for maximum 20 characters and for long text it has the maximum limit for 40 characters. In the ‘Consolidation of Charts of Accounts, you need to mention the Group Company or Trading Partner ID. Always remember that under section 509, there has to be a group consolidated G/L Account and Group P&L statement and Balance Sheet. Basically, you need business consolidation to get all consolidated results in Business Intelligence (BI) and Strategic Enterprise Management (SEM). Now, click on the ‘Control Data’ tab and tell me what you are viewing in that View.

Sarita: - Sir, we can view three labels or rows inside this tab. They are :- ‘Account Control in Company Code’, ‘Account Management in Company Code’, ‘Joint Venture data in Company Code’. Sir, can we take a short break before learning about this tab?

Nilkamal: - Ha ha ha …ok, ok, sure, take a break and come back with a fresh mind after a sip of tea or coffee.

SAP FICO ( EPISODE - 26 )

Govinda: - What is the matter, Rinky? You are giving more attention to your friends of SAP FICO training institute than your college friends.

Rinky: - What the hell are you trying to mean?

Govinda: - No, I just heard some whispers in our college campus that sometimes people see you with some other friends, who are not from our MBA College? Maybe, they are from different MBA Colleges. But, they are learning about SAP FICO under the same roof.

Rinky: - So? What? Have I ever questioned you when you roam in different places with your colleagues?

Govinda: - Maybe, you don’t love me that much, as I have the feeling towards you? Maybe, you are not at all possessive about me? That’s why, you don’t even care, if I have any love affair with any girl.

Rinky: - What nonsense you are speaking, I really don’t understand. You love me, which is ok. I accepted your proposal, which is also fine. We are now lovebirds, but that does not mean that we will sacrifice our own personal freedom.

Govinda: - I am not telling you to sacrifice your own personal freedom. I am not telling that I will sacrifice mine. What I want you to feel is that you are now committed in a relationship. You just cannot afford to have another love affair with any other guy.

Rinky: - I am not having any love affair with any other person. I am yours girlfriend only. You are having doubts on me? How shocking it is indeed to digest mentally.

Govinda: - Then, who is Arindam? Why were you having a fantastic time with him in the compound of Birla Mandir, when I was busy in finalizing a deal with one of my family business clients?

Rinky: - Have you gone crazy or what? On every second Saturday, I went to Birla Mandir with my mom to perform Puja. I just met Arindam there and was gossiping with him for some time. What is wrong with you? If you keep on yelling at me like this, then I will surely go for a break-up, as simple as that.

Govinda: - I think that Sarita is not lying. I can sense from your body language that you are fooling me.

Rinky: - Sarita is poisoning your ears and you are yet to understand that. Sarita is very jealous of me and my healthy personal life. That’s why, she is doing these things. There is no point in arguing on these silly things, while sitting inside CCD. At least, kuch romantic baatein toh karo, dear.

*******************

Ravi: - Kya yaar, tu kabhi nahi sudhrega? Jab dekho, online chatting karta rahata hain. What is the guarantee that with whom you are chatting is a girl but not a boy?

Arindam: - Abbey, kya farak parta hain. In the midnight, there is nothing to do. So, I am just doing time-pass by online chatting. Raat ko internet connection unlimited hain, so, there is nothing to worry about.

Manoj:- Chatting karo, thik hain, but don’t fall in any trap, boss. Have you read the newspaper, yesterday? One boy went for a date with an unknown girl; with whom he used to do online chat in facebook. Later, it was found that it was not a girl’s id, but a boy was chatting with everyone by creating a facebook account in the name of a girl. The culprit kidnapped the boy and demanded money. Today only, that culprit has been arrested by Policemen. So, please don’t go for a date, with any of these fake girl’s id in facebook, with whom you are chatting and even if you go, don’t go alone. Always keep us, as your backup.

Arindam: - Ha ha ha…Have you ever heard that a robber has dared to rob inside the house of a dacoit? It has never happened, because the robber knows that in the next day, the dacoit will show the dacoity skills on robber’s house. Don’t worry, I have become such an experienced online chatter, that I can easily recognize, which is a fake id. But, recently, in my Yahoo Messenger, there is a user, who is chatting with me for long hours in a very romantic style. The id is ‘RomanticRadha4u’. Strange!!!

SAP FICO ( EPISODE - 25 )

Jalan: - Why you people are not practicing SAP FICO in the computer labs? Nilkamal Sir has already taught you about the basic settings. Now, you people should practice it in the labs, otherwise, you will forget everything, whatever you have learned. In SAP, practice makes you perfect. The more you practice, the more there is a chance that you will get employed in a reputed MNC as a Functional Consultant.

Arindam: - There are some PCs in this computer lab, which are not connected to the main server. Last week, when I tried to practice some basic settings, it was not working at all.

Jalan: - There were some problems last week. We shifted some machines from the old lab to the new lab and also the server configuration was getting changed. On that week, troubleshooting of network was going on. Maybe, that’s why, you faced such problems. Now, you can login to any PCs in the lab, and please keep on practicing as much as you can.

Sarita: - Yeah, we should practice a lot. Come on, guys; let us do the practical of SAP FICO inside the computer lab.

********************

Govinda: - Hello! Sweetheart, where are you now?

Rinky: - I am in the computer lab of SAP FICO Training Institute. I am practicing the basic settings of SAP FI module. Why?

Govinda: - Don’t ask me, dear. I am mentally tired after two days of successive night shifts. Can we please meet at CCD today at 5 PM? Please, aa jaao naa…I have not seen you for 4 days. Also, I am not going to college nowadays.

Rinky: - Why? What about your final year assignment? Is it completed? Yours project was on ‘Web Services in ICICI Bank’, right? Hmm…have you not completed it?

Govinda: - Haan….haan…complete kar lenge….yeh sab baatein choro…I will wait for you there at 5 PM.

*******************

Manoj: - Kiska phone tha, Rinky?

Rinky: - Govinda ne call kiya tha. He is feeling very stressed out at his job.

Arindam: - Oho, it’s a (heart) breaking news for me…he he he….By the way, Govinda is also a final year student of your MBA college. The final semester results are yet to be declared. How come, Govinda is doing a job? Where is he working?

Rinky: - Govinda’s father is a businessman of Hyderabad. Govinda is studying MBA, so that he can utilize this knowledge to run his family business. He is doing a job in BPO as a Voice Trainee – Process Associate in US shift, just to earn some money, that’s all.

Ravi: - The guys like Govinda are always lucky. They have nothing to lose. If they don’t get any job also, they can still earn money for their living by running their ancestral family business. But, look at us, we have no other option rather than to look for a job.

Chaitanya: - Why you always think in a negative way? You are all MBA guys. Do you know; what is the best career for a MBA guy? It is none other than entrepreneurship. If you cannot setup your own company, then maybe, you are compromising with your managerial skills that you have learned in your MBA course.

Dulal: - It is very easy to say, but that much difficult to do. To setup a business, you need a good investment. Who will provide us the money? Even if the banks give you a loan to setup a small business, what is the guarantee that you will not take at least 5 years to reach the break-even point.

Sarita: - Patience, my dear friend, patience. If you don’t fall down while running on a track in the darkness, then how will you rule on that track to reach the places, where there are street lights? Businessmen who burned their hands at the first instant, but still kept on fighting in that business market always emerged as successful entrepreneurs.

Paul: - It is easier said than done. These things are not the cup of tea for everyone. Let us now concentrate on our SAP FICO practical rather than debating on the topic, ‘MBA Degree and Entrepreneurship’.

SAP FICO ( EPISODE - 24 )

Nilkamal: - Ok, now someone tell me the answer of a very simple question? What is the meaning of tolerances?

Arindam: - a maximum limit, beyond which the standard value should not vary.

Nilkamal: - to some extent, you are right, but you should use the exact terms in your definition. In a simple sentence, the word Tolerance means, accepted deviation from specified values. Here, we have to deal with two types of tolerances. The first one is to ‘Define Tolerance Groups for G/L accounts’ and the second one is to ‘Define Tolerance Groups for employees’. The path for the defining 1^st tolerance group is:- SPRO -> SAP Reference IMG -> Financial Accounting -> G/L Accounting -> Business Transactions -> Open Item Clearing -> Clearing Differences -> Define Tolerance Groups for G/L Accounts. The transaction code is OBAO. The transaction code for defining the 2^nd tolerance group is OBA4. Select the ‘New Entries’ button and then select the company code. What are you seeing in your screen?

Suhash: - Sir, a form appears with three rows: - ‘Amount per document’, ‘Amount per item account’ and ‘Cash discount per item’.

Nilkamal: - Yeah, ok. Enter the value 999,999.00 in the first row and second row. Enter cash discount per item as 5% as of now. Now, press the ‘Save’ button. The settings for tolerance groups are completed.

Ravi: - Why have you given 5% for cash discount? It can be 10% or 15% also.

Nilkamal: - No, no, it is not a vague assumption at all. This is basically the open item payments and open item receipts. In a company, for any sales people, maximum discount limit is only 5%. This entire setting can be seen in a Table. The table name is T043T.

Sarita: - Sir, our brains are not working at all. We are learning about ‘settings’ in these classes. It was so boring.

Nilkamal: - Ha ha ha…you are learning SAP for the first time, so, it will be not so easy to grasp it at the first go. Anyway, now, let me start with the General Ledger module. We will take the other settings at a later stage. Hey, Chaitanya, can you tell me the activities involved, when a sales take place in a company to the top management getting the report about that sales in the form of a MIS report?

Chaitanya: - Hmm…When a sales take place, it is recorded as a business transaction.

Nilkamal: - Ok, but how are you going to record a business transaction?

Manoj: - Very simple, Sir. We will use a Journal Entry.

Nilkamal: - Oh! Come on. In a Journal entry, there is no scope of applying the golden rules of accounting.

Suhash: - The Journal Entries flow to General Ledger account, Sir.

Nilkamal: - Are the figures of both sides always in balanced form?

Dulal: - We try balance the figures in the Trial Balance. From this Trial Balance, we will get the P&L accounts and Balance Sheet at the next stage. The combination of the Balance Sheet and P&L Account will help us to generate the desired MIS report.

Nilkamal: - So, the water started its course from Gangotri, flowed through the land in the form of Ganges River and ultimately reached the Bay of Bengal. Therefore, the activities are:- Sales of an item -> Business Transaction -> Journal Entry -> General Ledger -> Trial Balance -> P& L Account + Balance Sheet -> MIS Report (Financial report only). Today, we will end here. Next day, we will learn to open a G/L account in SAP FI module.