Setup FI Fiscal Year Period

The client wants fiscal year to be set from May 1 – April 30 but they use a 4,4,5 accounting period setup meaning that every month end on the last Friday of the month. I am setting for 2006-2007. As you know, the FYV should be year dependent, so how can the periods be set up.

In IMG go to financial accounting global setting then go to fiscal year variant and set the fiscal year variant on year dependent year and follow the following procedure:

1. enter name of month started from may and end on april
2. enter the number of days in a month you want to close for example in may number of days is 28 instead of 31
3. enter period from 01 to 12 started from may to april
4. enter -1 against the month from jan to april

For Example :

Month Number of Days Period Year Shift
May06 28 01 0
June 35 02 0
July 28 03 0
Aug 28 04 0
Sep 35 05 0
Oct 28 06 0
Nov 28 07 0
Dec 35 08 0
Jan07 28 09 -1
Feb 28 10 -1
Mar 35 11 -1
Apr 31 12 -1

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Check List for FI Year End Closing

Check List for FI Year End Closing


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Check List for FI Year End Closing
1 Execute Report for InterCompany Activity & Journal Entries
2 Open posting period for next yr
3 Run Business Area's Assignment report.
4 Review list of recurring journal entries
5 Execute Recurring Entries for A/R, A/P, G/L
6 Process Parked A/R, A/P, G/L accounting documents
7 Final Cutoff for the Maintenance of Fixed Asset- Add Transfer and Retire
8 Run Depreciation in Test Run and post
9 Verify Display Log for Depreciation Test Run
10 Capitalize AUC Assets if needed
11 Enter Payroll Data to SAP
12 Verify Depreciation Balances with GL balances
13 Post Depreciation
14 Execute Asset History Report, and retire assets if needed
15 Adjust specific depreciation areas if necessary
16 Reconcile AM subledger with GL
17 Check Bank Data
18 Review AR Open Items
19 Review AP Open Items
20 Execute Pending Invoices


21 Clear Open Item for GRIR, freight
22 Reconciliation of Financial Documents and transactional figures
23 Open new CO Posting Period
24 Compare current (cost estimates) with last current price (Moving Avg)
25 Update current cost price to material master price field.
26 Process Freight charges, Match SD freight to actual
27 Review Internal Order Postings
28 Settle All Orders
29 Verify All Post Goods Issue have been Invoiced (Billing Due List)
30 Review SD Billng Doc from prior mth that have not yet been released to accounting
31 Reconciliation of MM movements in Transit Intra-SAP to NonSAP
32 Reconcile PI Inventory with SAP
33 Perform Manual Adjustment if needed
34 Verify balance of the GR/IR account
35 Post Accruals and Deferrals
36 Clearing of Cancelled Documents
37 Check Profitability Segment Adjustment
38 Aging Report-Reconcile GL balances with subledger balances AP
39 Check the check run numbers
40 Bank reconciliation Data
41 Enter Tax Journal Entry
42 Reconcile GL balances with subledger balances AR/MM/AP
43 Display Balance Sheet Adjustments
44 Post Balance Sheet Adjustments
45 Post Foreign Currency Valuation (foreign exchange)
46 Check generic cost centers for posting with wrong accounts
47 Correct wrong postings on generic cost centers
48 Check Validation dates for Cost Centers, Cost Elements, CO area
49 Check COGI--for both month end and year end
50 Doubtful receiviables
51 Verify In-transist Inventory
52 Reconcile PA to G/L
53 Post Cost Centre Assessments and Distributions
54 Run CO-FI Reconciliation to balance
55 Run BW reports P&L and Balance Sheet
56 Maintain CO yr variant
57 Fiscal Yr Balance carryforward AP/AR/AM
58 Fiscal Yr Balance carryforward CO
59 Fiscal Yr balance carryforward FI
60 Fiscal Yr balance carryforward PCA
61 Set Document number ranges - FI - new year
62 Set Document number ranges AP/AR - new year
63 Generate Financial statement Reports
64 Change Fiscal Year For Assets
65 Year end Closing-- Asset Accounting--final for year end
66 Close CO Posting Period
67 Close Prior A/R Posting Period
68 Close Prior A/P Posting Period
69 Close Prior MM Posting Period
70 Reverse accruals and deferrals for the new month
71 Reconciliation of Financial Documents from old fiscal year and new fiscal year
72 Load Balances, Budget Data for Cost centers, sales
73 Update Retained Earning Account , balance carry fwd

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Allowed OB52 based on company code

If you have several company codes and want your users only to be able to open and close periods
(transaction OB52) belonging to their posting period variant (=company code).

First you configure the Posting Variant :-

1) FI- FI Global Settings - Document - Posting Periods - Define Variants for Posting Periods

2) FI- FI Global Settings - Document - Posting Periods - Assign Variants to Company Code

Second Step:-

Goto SE11 copy the view V_T001B to ZV_T001B_000X (000X indicate the Posting Variant)

In Change mode, tabstrips Selection Conditions Insert line 2 with

Table Field Name Operator Comparative Value AND/OR
T001B BUKRS EQ '000X' AND

Save your entries

Third Step :-

Goto SE54, Options Generated Objects -> Create

Authorizations Group FC31
Function Group Z00F0
Maintenance Type One Type
Overview Screen 65
Single Screen 0

Final Step :-

Goto SE93, Create a new transaction code ZOB52_000X

Start object - Transaction with parameters (parameter transaction)

Transaction SM30, Tick Skip initial screen

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Reversal Entry in Accounting

At times some incorrect documents might have been entered in the systems. If you have entered an incorrect document, you can reverse it. Note that R/3 can reverse a document only if the following conditions are met: - Contains no cleared items - Contains only vendor, customer, or G/L line items - Was posted within the FI system - Contains only valid values, such as business areas, cost centers, and tax codes Ordinarily, you post a reversing document in the same period you posted the original document. The period of the original document must be open to post a reversing document. If the period is not open, you can overwrite the posting date field with a date in an open period, such as the current period. Reversal can be done individually - FB08 or Mass F.80. If the document to be reveresed contain cleared items, then cleared item must be reset before the reversal of document.

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Sales and Distribution Accounting Entries

INVOICE GENERATION
Invoices will be generated at the Smelters and stock points. The accounting entries for the sale of goods despatched will flow from the Sales invoice generated in SAP Sales and Distribution module. The following entries shall be passed
Customer Account Dr
Revenue Cr
Excise Duty Payable Cr
Sales Tax Payable (local or central) Cr

Note: As mentioned above in the FI document, which is created in the background, the SD invoice number shall be captured. However as per the current accounting procedure the accounting entry passed is as follows :-
Customer Account Dr
Revenue Cr
Excise Duty Billed Cr
Sales Tax Payable (local or central) Cr

Excise duty paid a/c Dr
Excise duty payable a/c Cr

EXPORT SALES
There have been very few export transactions in the past. SAP system will be designed to handle export business. Exports are mainly from the mines and will be handled at the mines, however the documentation part will be taken care at the Head Office. The accounting entry is:
Customer Account Dr
Revenue (Exports) Cr

The realisation of export sales will be directly credited to the bank. The accounting entries will be as follow:
Bank Dr
Customer Cr
Exchange Fluctuation Dr/ Cr

The accounting entries will be:
Rebates/Discounts Dr
Customer

Cr

DEBIT MEMOS
Debit Memos shall be issued in case of price difference, sale tax difference and interest on usance period and overdue payments.

The accounting entries for two possible scenarios are as follows:
Price Undercharged:
Customer Account Dr.
Revenue Cr.
Sales tax payable Cr.
Sales tax undercharged
Customer Account Dr.
Sales tax adjustment Cr.

Interest on delayed payments/usance period and other charges
Customer Account Dr.
Interest Others Cr.

In case of HZL a complete retirement or a partial retirement of asset is done. The system uses the asset retirement date to determine the amount to be charged off for each depreciation area. The existing accounting policy is to provide depreciation for the full quarter in which the asset is sold/discarded, recommended that the depreciation be provided from the date of acquisition on prorata basis .

Accounting entry for sale of Asset to customers:
Customer Account Dr
Asset Sale Cr
Accumulated Depreciation Dr
Loss on Sale (if applicable) Dr
Asset Sale account Dr
Asset account Cr
Profit on sale (if applicable) Cr

Note: In case of any Sales Tax /Excise duty applicable for this transaction, SAP will calculate the Sales Tax/Excise Duty based on the Tax Code selected the entry is posted to the GL Account (Sales Tax Payable)

Accounting entry for sale without a customer:
Accumulated Depreciation Dr
Loss on Sale (if applicable) Dr
Asset Sale account Dr
Asset account Cr
Profit on sale (if applicable) Cr

Accounting entry for scrap
Accumulated Depreciation Dr
Loss on Sale of Assets Dr
Asset account Cr

SALE OF SCRAP
The sale of scrap (non-stock) shall be mapped as a direct manual FI entry. The customer will be created as a FI customer. No Logistics module will be involved in the process.

A FI Invoice will be prepared for the sale of scrap with the following entries:
Customer Dr
Sale of Scrap Cr
Excise Duty Payable Cr

ADVANCES FROM CUSTOMERS
Advances are received from the customers against delivery. These advances will be recorded in a special general ledger account. The accounting entry for the same will be:
Bank Account Dr
Advance Customer Payments Cr

These advances will be later on adjusted against the invoices raised on the customers. Advances can be adjusted against more than one invoice at the time of clearing of the invoices against advances.

Adjustment of Advances
Customer Account Cr
Advance Customer Payments Dr

A financial document would be created for each Bank Guarantee received and this document number will be referred to in the Sales Order which would then monitor the value and the validity of the of the Bank Guarantee instrument wise while doing the billing.The letter of credit /Bank guarantee given will be recorded as a noted item.

Accounting Entry for Goods receipt
Stock/Inventory account Dr
GR/IR account Cr
Freight clearing account Cr

Accounting Entry on invoice verification of supplier
GR/IR Dr
Vendor account Cr

Accounting Entry on invoice verification of freight vendor
Freight clearing account Dr
Freight Vendor account Cr

GOODS RECEIPT
Based on the Purchase order and the Quantity actually received Goods Receipts (GR) will be done. Based on the GR done the following accounting entry will be passed in the Financial Accounts
RM/PM Stock Account Dr
GR/IR Account Cr
Freight Clearing Account Cr

EXCISE INVOICE VERIFICATION
On receipt of the excise invoice cum gate pass the following entry will be passed
RG 23 A / RG 23 C Part 2 Account Dr
Cenvat Clearing Account Cr

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Example ABAP / SAP Error Code : 0FILA

Filename: 0-F-I-L-A

SAP Program / SAP BW Program: SAPLFILACUST

SAP Transaction Code Description: Customizing LAE Initial Screen

SAP Transaction Code Tag: 0FILA

SAP T-Code ID: 1

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Inventory Accounting Entries

Inventory Accounting Entries
For Example: during Goods Receipt

Stock Account - Dr
G/R I/R Account - Cr
Freight Clearing account - Cr
Other expenses payable - Cr

During Invoice Verification

G/R I/R Account - Dr
Vendor - Cr

When the Goods are issued to the Production Order the following transactions takes place:

Consumption of Raw Materials - Dr
Stock A/c - Cr

When the Goods are received from the Production Order the following transactions takes place:

Inventory A/c - Dr
Cost of Goods Produced - Cr
Price difference - Dr/Cr
(depending on the difference between standard cost and actual cost)

When the Goods are dispatched to customer through delivery the following transactions takes place:

Cost of Goods Sold - Dr
Inventory A/c - Cr

When the Goods are issued to a Cost Center or charged off against expenses the following transactions takes place:

Repairs and Maintenance - Dr
Inventory A/c - Cr

When the Goods are stock transferred from one plant to another, the following transactions takes place:

Stock A/c - Dr (Receiving location)
Stock A/c - Cr (Sending location)
Price difference - Dr/Cr
(due to any difference between the standard costs between the two locations)

When the stocks are revalued, the following transactions takes place:

Stock A/c - Dr/Cr
Inventory Revaluation A/c - Cr / Dr

When the Work in Progress is calculated the following transaction takes place:

Work in Progress A/c - Dr
Change WIP A/c - Cr

Physical verification /shortages and excesses : Shortages/excesses on authorizations shall be adjusted using the physical inventory count transaction.

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