Simple questions like ‘how many company codes one can create in SAP ‘may be asked in an interview to test your understanding in SAP. Company Code or CC is used in SAP by almost all sub modules to post financial transactions into SAP. Before answering this question, let us understand why company codes are created in SAP. In SAP, Company code is used to define the smallest … [Read more...] about How many company codes one can create in SAP and how to define it in SAP
SAP FICO Module
How to define Company in SAP and what relationship it has with company codes
A company in SAP is formed as an organizational unit for which financial statements are required to be drawn as per the legal requirements of the country. Its defined at client level. This means its assigned below the client level to which all other units are assigned in SAP. Company can be defined in SAP with transaction code OX15 or through following IMG path; Table … [Read more...] about How to define Company in SAP and what relationship it has with company codes
Why different Posting keys for sub ledgers – Can we create our own posting key
Every day more than thousand financial documents are created and posted in SAP. To get these transactions posted into SAP, we require posting key to make it either a debit entry or credit entry. For recording these transactions, SAP has delivered standard posting keys for use instead of letting you define a new one. Based on the transaction types in sap, these are defined … [Read more...] about Why different Posting keys for sub ledgers – Can we create our own posting key
How many Posting periods can be kept open at a time in an organization
Ledgers and sub ledgers are kept open for posting of your financial transactions into sap. However, to avoid incorrect posting to some other periods or months, SAP has given flexibility of opening and closing posting periods by which we can open and close any month for a relevant year based on our business requirements. You can open as many posting period as you want by … [Read more...] about How many Posting periods can be kept open at a time in an organization
Importance of posting key for a document entry in sap fico
Posting keys in SAP are defined at the client level and assigned to the company code while entering particular line items into sap. Like in the case of document type, posting key also manage lots of things in sap for a document. In this article we will look into the importance of posting key for a document entry in sap fico. Debit or credit posting Each line item in … [Read more...] about Importance of posting key for a document entry in sap fico
Why document number range is so important for a document posting in Sap
In SAP system, at least one document is recorded for every business transaction and such transaction receive a unique number. These document numbers can be assigned by the system or by user while entering a transaction to sap. In certain situations even sap creates more than one document. For example; when goods arrive from a vendor two documents are created. One for material … [Read more...] about Why document number range is so important for a document posting in Sap
Why we have different document types in sap fico
Every day, more than thousand transactions are created in a company. These transactions are identified by their categories or document types and stored in sap. Now the question is why these transactions are to be identified with a category or document type. In this article we will be discussing major reasons of having document types in sap fico. Document entry in SAP … [Read more...] about Why we have different document types in sap fico
How to clear both vendor and customer open items with each other in sap
In a business, you may be required to clear open items related to both customer and vendor with each others. This type of clearing will take place only when vendor and customer of a company are same. For example; it may happen in a business that you are procuring certain raw materials for your finished products and after producing it you are selling certain portion to the … [Read more...] about How to clear both vendor and customer open items with each other in sap
Why line item display is not set for reconciliation account – Sap Fico
Line item display is set for those accounts which are specifically required to display both side of a transaction in its report display i.e. debit and credit side of a transaction. When you post a transaction to gl account which has been set to line item display in its ledger master, system will store it in a special index table in addition to storing it in the documents. When … [Read more...] about Why line item display is not set for reconciliation account – Sap Fico
What is alternative payee or payer in sap fico
Alternative payee is the party to whom you will be making payments on behalf of the original vendor. Alternative payee is a vendor who is recognized as having a right to access to receive some or all the benefits on behalf of the original vendor. Address of the alternative payee will be used for sending reminder. The payment program in sap can make payment to such vendors other … [Read more...] about What is alternative payee or payer in sap fico