SAP FICO (EPISODE - 30) !!!

Nilkamal: - the account ID together with the house book ID, uniquely defines a House Bank and Accounting ID.

Chaitanya: - What is the role of this ‘Interest Indicator’ field then?

Nilkamal: - Here you need to enter an interest calculation indicator if the account is to be included in automatic interest calculation. After that there is a ‘Keyword/Translation’ where it explains the language of your account. Then there is ‘Information at Chart of Account level’. This is the setting which is done when the document is created or saved. Now come to the ‘Information at Company code level’ tab. Here you can view Chart of Accounts (COA) and controlling area. The combination of one COA for a unique company code will recognize a ledger account. Under this tab, there are three things to be taken care of. They are: - Document Control, Posting Keys and Document Principle. In Document Control, the system provides status to the fields in the documents through two ways. One is by Field Status Variant (configured in transaction ID: - OBC4) and assigned to the respective G/L account in transaction ID: - FS00. Another one is the Posting keys, which controls the document display.

Dulal: - but, sir, how are these posting keys controlling the document display?

Nilkamal: - See, these posting keys are those keys through which a system recognizes the debit or credit of an account. For G/L debit, the posting key is 40 and for G/L credit, the posting key is 50. The path for posting keys is:- SPRO -> SAP Reference IMG - > Financial Accounting -> FAGS -> Document -> Line Item -> Controls -> Define Posting Keys. The posting keys control how the line item to be entered and processed. See, you people need to understand the basic function of posting keys by asking some questions like: - Which side an account can be posted to? Which type of an account can be posted to? Which fields the system displays on the entry screen and whether an entry must be made in the field status or not? Accha, another thing you must take note of. It is known as Document Principle. The SAP FI system always recognizes the Document Principle to ensure that the sum of the debits must be equal to the sum of the credits.

Rinky: - Sir, now are we ready to open any G/L accounts? All the settings are done?

Nilkamal: - of course, we can now open several G/L accounts. Our G/L accounts will be ‘Retained Earnings’,’ Share Capital’ & ‘Bank account’. Enter the G/L account number as ‘100000’ and the Company code as ‘RBT’. The technique of creating this account is: - Go to ‘G/L Account’ tab -> Select ‘Create’ button -> Select Accounting Group as ‘Liabilities’ -> Select Accounting type as ‘Balance Sheet’ -> Write the Account Name as ‘Retained Earnings Account’ -> In ‘Control Data’ tab, select ‘balances only in local currency’ -> Set the ‘Line Item Display’ -> Set ‘Sort key’ as ‘001’ -> Select ‘Create/Bank/Interest’ tab -> Enter ‘Field Status Variant’ as ‘G001’ and then Press the ‘Save’ button. Similarly, we will create the ‘Share Capital’ Account also with the G/L Account number as ‘100100’. Now these two accounts of ‘Retained Earnings’ and ‘Share Capital’ are liability related accounts. But, the ‘bank account’ will be an asset related account. Can anyone tell me, how can we create a bank account? Somebody please try.

Manoj:- Sir, the procedure will be:- Enter G/L Account number as ‘200000’ -> Press ‘Create’ button -> Select Accounting Group as ‘Assets’ -> Select Accounting type as ‘Balance Sheet’ -> Write the name of the bank account as ‘SBI’ -> Select ‘Control Data’ tab -> Select ‘balances only on local currency’ - > Select ‘Line Item Display’ -> Select ‘Sort Key’ as ‘001’ -> Select ‘Field Status Group’ as ‘G001’ -> Select ‘Relevant to Cash flow’ and press the ‘Save’ button.