Financials and Controlling

Notes on Funds Management (Activation)

2010-04-03T04:29:00.000-07:00

Note 840783 - Error message FAGL_LEDGER_CUST020 or FAGL_LEDGER_CUST023

When I activated first time PSM-FM , Ledgers (0L -Leading Ledger) disappeared from customizing. While searching for solution I found above sap note, which explains the scenarios in which this can happen and solution for the same.

My case - "Funds Management is active, but you are not a public sector customer"

Solution : Execute the report FMGL_CHANGE_APPL_IN_LEDGER (from Note 906397). This report assigns the subapplication PSM to all NewGL ledgers.

This change happens in Table-T881. Value in Fields Sub-application changes from GLF - PSM.

Note 1400563 - When should a PSM customer use FAGLFLEXT or FMGLFLEXT

After applying the above solution we had 2 totals tables to choose from. Above note explains the difference between the two tables.

It is not compulsory to use FMGLFLEXT if we activate Funds Management.

FAGLFLEXT - facilitates Segment Reporting with Scenario FIN_SEGM

FMGLFLEXT - Facilitates Fund Accounting with Scenarios PSM_FAC

2010-03-06T03:33:00.000-08:00

Former Budgeting Vs. Budget Control System

S.No	Features	Former Budgeting	Budget Control System
1	Hierarchy in Budget Values	Yes	No
2	Budget Categories	Yes	Yes
3	Versions	Yes	Yes
4	Budget Types	Yes(SAP)	Yes(Customer)
5	Budgeting Processes	No	Yes(SAP)
6	Budget Release	Yes	Yes
7	Master Data used for Budgeting	Fund Centre	Fund Centre
		Commitment Item	Commitment Item
		Fund	Fund
		Functional Area (Optional)	Functional Area (Optional)
			Funded Program (Optional)
			Grant (Optional)
8	Multilevel Availability Control (AVC)	No	Yes
9	Preliminary Budget Postings	Yes	Yes
10	Tolerance Limits Absolute/Percentage	Yes/Yes	Yes/Yes
11	Document Types for Budgeting Documents	No	Yes
12	Definition of Key Figures	No	Yes
13	Create Budget Document with reference	Yes	Yes
14	Definition of posting object for revenue account assignments	Yes	Yes
15	Budget Structure	One year onward	Per year

Basic Settings - Funds Management

2010-02-27T04:17:00.000-08:00

Activate Global Funds Management Functions (PSM-FM)

Public Sector Management > Funds Management Government > Basic Settings > Activate Global Funds Management Functions (PSM-FM)

1. On the Change View “Activate Additional Functions”: Details screen, set the indicator.

On the Change View “Activate Additional Functions”: Details screen, set the indicator.

2. Choose Save to save the data.

Activate Global Functions for Budget Control System (BCS)
IMG Menu > Public Sector Management > Funds Management Government > Basic Settings > Activate Global Functions for Budget Control System(BCS)

On the Change View “Activate BCS – Budget Control System”: Overview screen, make the following entries

Choose Save to save the data.

Assign Fiscal Year Variant to FM Area

IMG Menu > Public Sector Management > Funds Management Government > Basic Settings > Fiscal Year Variant > Assign Fiscal Year Variant to FM Area

1. On the Change View “Assign FM Area to Fiscal Year Variant”: Overview screen, make the following entries :

2. Choose Save to save the data.

Activate Extension Set IS-PS

2010-02-27T03:59:00.000-08:00

Activate Extension Set IS-PS

IMG Activity > Activation Switch for SAP R/3 Enterprise Extension Set

On the Change View “Activation Switch for Components of SAP R/3 Enterprise”: screen, set the indicator for IS-PS (IBU Public Sector).

Choose Save to save the data. Choose “Activate” for activating the changes you made.

2010-02-27T02:45:00.000-08:00

Difference Between Classic and Extended Withholding Tax

S.No	Individual Function	Classic	Extended
1	Withholding Tax on Outgoing payment	Yes	Yes
2	TDS on Incoming payment		Yes
3	TDS at the time of Invoice		Yes
4	TDS on partial payment		Yes
5	No. of withholding tax from each document	Max1	Several
6	TDS basis
	-Net amount	Yes	Yes
	-Gross amount	Yes	Yes
	-Tax amount		Yes
7	Rounding rule		Yes
8	Cash discount consideration		Yes
9	Accumulation		Yes
10	Minimum/Maximum amt and exemption		Yes
11	Certification Numbering		Yes
12	Calculation Formula	Yes	Yes

Taxation - Tax Procedure (Config) - Part 1 Basics

2010-02-21T07:36:00.000-08:00

Prerequisites

To Implement Taxation one should have basic knowledge of different Taxes Levied and Calculation Process.

For example :- Excise, VAT, Sales Tax etc.

Configuring Tax Procedure

Financial Accounting (New) > Financial Accounting Global Settings (New) > Tax on Sales/Purchases > Basic Settings > Check Calculation Procedure

Under this we have three option we will check one-by-one in the reverse order.

Access Sequences

Define Condition Types

Define Procedures

Define Procedures

The procedure we are going to discuss here is TAXINJ

Select Procedure TAXINJ and go to control data

In Control Data we have 16 fields to help us configure the Tax procedure.

Step - Number that determines the sequence of the conditions within a procedure.

Counter - Access number of the conditions within a step in the pricing procedure.During automatic pricing, the system takes into account the sequence specified by the counter.

Condition Type - The condition type is used for different functions. In pricing, for example, the condition type lets you differentiate between different kinds of discount; in output determination, between different output types such as order confirmation or delivery note; in batch determination, between different strategy types.

Description - Description of the Condition Type

From - Condition step, the value of which is the basis for percentage surcharges.If you specify a "to" reference step at the same time, the condition values of the two steps specified and the conditions values of the steps in between are totaled. In this case, percentage surcharges are calculated on the basis of the total.

To - Condition step up to which the condition values of the previous steps are totalled. Percentage surcharges are calculated on the basis of the total. If you specify a "from" reference step at the same time, the condition values of the two steps specified and the condition values of the steps in between are totalled.

Manual - Conditions, that are given this indicator in the pricing procedure, are only included in determination (price determination, output determination, batch determination) either if they are entered manually, for example, on the condition overview screen in Pricing or if they are transferred from an external process, such as costing.

Required - Indicates whether the condition is mandatory when the system carries out pricing using this pricing procedure

Statistical - This indicator causes a surcharge or discount to be set in the document statistically (that is, without altering the value).

Print - Controls issue of condition lines when printing documents such as order confirmations or invoices.

Subtotal - Controls whether and in which fields condition amounts or subtotals (for example, a customer discount or the cost of a material) are stored.

Requirement - If the requirement is fulfilled (SY-SUBRC = 0), then output determination also takes into consideration output type or the access sequence, for which the requirement has been specified.

Calculation Type (Condition Formula Type) -Alternative formula to the formula in the standard system that determines a condition.

Base Type - Formula for determining the condition basis as an alternative to the standard

Account Key - Key that identifies different types of G/L account.

Account Key Accruals - Key which identifies various types of G/L accounts for accruals or provisions.

Posting Period Variant

2010-02-15T10:51:00.000-08:00

To set open periods in a fiscal year we need to first define a posting period variant. Then we need to assign the same to a company code.

Define Posting Period Variant

Financial Accounting (New) > Financial Accounting Global Settings (New) > Ledgers > Fiscal Year and Posting Periods > Posting Periods > Define Variants for Open Posting Periods (OBBO)

Give a four digit code as variant name.

Financial Accounting (New) > Financial Accounting Global Settings (New) > Ledgers > Fiscal Year and Posting Periods > Posting Periods > Assign Variants to company code (OBBP)

we can assign posting period here or maintain in the global parameters for the company code. We have created Posting Period Variant and assigned it to the company code. Now we can maintain the open periods for the company code.

Financial Accounting (New) > Financial Accounting Global Settings (New) > Ledgers > Fiscal Year and Posting Periods > Posting Periods > (OB52)

Now , In the above screen

Column 1 :- Posting Period for which we would like to maintain open periods
Column 2 :- Account Type for Masking
+ For all account types
A For all Asset
D For Customers
K For Vendors
S For GL Accounts

Column 3 & 4 :- From Account and To Account determines the range of accounts for the given Account type.

Column 5 & 6 : starting period and year for the open period range.
Column 7 & 8 : ending period and year for the open period range.
Column 9 & 10 : starting period and year for the special period.
Column 11 & 12 : ending period and year for the special period.

Column 13 : Authorization Group - we can maintain authorization group in case we need the posting period to be available to restricted group of users only.

Fiscal Year and Posting Period Variants

2010-02-14T20:44:00.000-08:00

Fiscal Year Variant

Financial Accounting (New) > Ledgers >Fiscal Year and Posting Periods >Maintain Fiscal Year Variant (OB29)

Fiscal Year variant contains the characteristics of the Financial Year for Accounting. This contains

a) no. of posting periods in the Fiscal Year

b) no. of special period at the end of Fiscal Year

c) Weather the fiscal year follows a calendar year (Jan-Dec) or some other (Apr-Mar etc.)

d) In case the posting period should be separately for each year.

Ex 1. Jan-Dec with 4 special period

In the above example, we have created N9 Fiscal year variant ;

a) With 12 posting periods and

b) 4 special periods for closing operations

c) This variant follows Calendar year ie. 1^st period will by Jan, 2^nd Feb etc.

d) Finally posting periods will not change year on year i.e. 1^st period of each financial year will be Jan and 12^th period will always be December.

Ex 2. Apr-Mar 4 special periods (ex- year 2010-11)

In the above example, we have created A9 Fiscal year variant ;

e) With 12 posting periods and

f) 4 special periods for closing operations

g) In this example Calendar year check box is not checked. So, this variant does not follows Calendar year ie. 1^st period will not be by Jan or 12th period as Dec etc.

In this case we need to maintain periods i.e. which calendar month will be first month of the Financial year. In this example the first month is Apr. So the periods will be maintained as shown below

In the Periods section,

a. first column Month represents the calendar month i.e. 1 represents Jan, 2- Feb and so on.

b. Second column Day represents no. of days in the month

c. Third column Periods represent the month in the financial year. Now this is important, here 1^st period in the financial year is April so we have maintained 1 representing the first period of financial year against 4^th period in column Month. Similarly Month 5 – period 2, Month 6 – period 3 and so on, finally Month 3(March) will be the 12^th period.

d. In this example the financial year comes in two calendar years. For example Apr 2010 to March 2011, in this case 1^st period to 9^th period will fall in 2010 and 10^th to 12^th periods in 2011.

Now the 1^st month represents 10^th period of the financial year, to make sap understand that 10^th period represents financial year started in 2010 we need to maintain year shift.

For current year we maintain 0 and for the months falling in next calendar year as -1.

h) posting periods will not change year on year i.e. 1^st period of each financial year will be Jan and 12^th period will always be December.

Period Text

Here we can maintain the text for the periods as shown below.

Shortened Fiscal Year and Posting Period Variant will be discussed in next blog...

Chart of Accounts and Account Group

2010-02-07T14:52:00.000-08:00

Define Chart of Account

Finance Accounting (New) > General Ledger Accounting (New) > Master Data > G/L Accounts > Preparations > Edit Chart of Accounts List (OB13)

A Chart of Accounts is list of GL Accounts. A Chart of Accounts can be assigned to Company Code as ;

a) Operation Chart of Account (Mandatory)
b) Group Chart of Account (Optional)
c) Country specific Chart of Accounts

CoA Name can be a 4 alphanumeric characters.

Table :T004

Assign Chart of Accounts to Company Code

We assign Chart of Accounts to Company Code while maintaining the "Global Parameters"(OBY6) for the company code. An Operational CoA and Country Specific CoA is assigned to company code in OBY6, while Group Chart of Account is Assigned to operational Chart of Account inn OB13.

Unless we maintain CoA and FYV in Global Parameters, we will not be able to assign company code to a controlling area.

Change a Chart of Account

Once CoA is assigned to Company Code and Controlling Area, we will not be able to change or delete CoA assignment without resetting company code. We can reset company code by deleting data in company code using transaction OBR1 or OBR2.

After Data is deleted using above transaction first change assignment in Company Code's Global Parameters OBY6 and then Maintain Controlling Area OX06.

Create Account Groups

Finance Accounting (New) > General Ledger Accounting (New) > Master Data > G/L Accounts > Preparations > Define Account Groups (OBD4)

Account Groups is grouping of GL accounts based on certain criteria or similarity in nature of Account.

An Account Group is are used to organize or manage the GL Accounts.

It controls the Number Range in which the Account must be created. Also, it controls Field Status and screen layouts for company code specific area.

Account Groups are created with reference to CoA.

Costing Variant

2010-01-30T08:40:00.000-08:00

Costing Variant determines how a material is costed. Costing variant contains all the parameters and settings for creating a cost estimate.

Controlling > Product Cost Controlling > Product Cost Planning > Material Cost Estimate with quantity structure> Define Costing Variants (OKKN)

This are standard set of costing variants. Select one of the variant to view the details.

A Costing variant contains six tabs
i) Control
ii) Qty Structure
iii) Additive Costs
iv) Update
v) Assignments
vi) Misc

Control

Control tab contains six control parameters.

a) Costing Type - here we define controls like Price update, Valuation View, if date needs to be included key while saving cost estimate, cost sheet for overhead calculation etc.

b) Valuation Variant - here we define strategy sequence for selection of price of material, activity, subcontracting, Ext. Processing, Overhead for Finished Goods and Semi-Finished Goods etc

Costing Type and Valuation Variant are key components of Costing Variants. These components contains important parameters that controls cost estimate.

c) Date Control

d) Quantity Structure control

e) Transfer Control

f) Reference Variant