SAP is the acronym for Systems Applications and Products in data processing. It’s very widely used across industries because of its flexibility and highest data integrity. It's originally introduced in 1980 by SAP AG (German based company) as SAP R/2. In 1992 they introduced client-server based system and named it SAP R/3. In 2004 they launched mySAP ERP which is now called … [Read more...] about What Is SAP – Systems Applications and Products in Data Processing
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Posting Period Variant Creation, Use and Effect in SAP FI
Posting periods are defined in fiscal year variant. You can open and close such periods in a posting period variant. To prevent wrong posting to a particular month you need to periodically close these periods which as per the business process need to be closed in financial accounting. The best business practice is to always open the current posting period and the period prior … [Read more...] about Posting Period Variant Creation, Use and Effect in SAP FI
How to set Open item Management indicator in GL master
With the help of open item management you can specify a account either to be open or cleared. To get activated open item management in the company code segment of general ledger account line item display needs to be selected. It's a prerequisite for a general ledger account if you need to check whether there is an offsetting for a given business transaction. With the help of … [Read more...] about How to set Open item Management indicator in GL master
Document type and Posting key in SAP FI
Document types are used to distinguish between various accounting documents and controls the header information. While entering a document you enter the document type in the header section. If you are using any specific transaction code then document type will be defaulted. You can change such defaulted document type from the header section while entering a transaction. But … [Read more...] about Document type and Posting key in SAP FI
Line Item Display and the purpose of setting this indicator in GL A/C master
Line item display field in SAP FI is a control field in the company code segment of a general ledger account master. When you set “Line Item Display” field in a company code segment of a general ledger master, all the posted transactions are stored in a special index table of SAP which carries additional storage and system time. When you click on this account transaction, you … [Read more...] about Line Item Display and the purpose of setting this indicator in GL A/C master
Cross Company Code Transactions in SAP FI Module
Cross company code transaction involves two or more company codes in one business transaction. For a cross Company Code transaction, the system will post a separate document in each of the Company Code in sap involved in the business transaction. Examples for cross company code transactions are: One Company Code makes purchases for other Company Code (Called Central … [Read more...] about Cross Company Code Transactions in SAP FI Module
Posting Key used in SAP FI Module
Posting key in SAP is specified or defaulted for each line item and it controls how the line item is entered and processed. These Posting keys in SAP determines three parameters - Account Type, Debit or Credit, Field status of all other fields in the line item. Posting key in SAP determines: What data can be entered in the line itemHow the data that is to be posted is … [Read more...] about Posting Key used in SAP FI Module
How to create company code in SAP
Company is a smallest organizational unit for which individual financial statements can be drawn up according to the relevant law of the country. It can consist of one or more Company Codes. All company codes within a company must use the same transaction chart of accounting (operating chart of accounts) and the same fiscal year. A Company Code in SAP has one local currency … [Read more...] about How to create company code in SAP
What is SAP Business Suite
Last time i have received a mail asking a question on What is SAP Business Suite. We think that many of our readers will be interested to know what is SAP business suite. In this article we have tried to answer that question. Before we start let us have a small introduction about the company. This company was founded in the year 1972 by five former IBM Engineer in Mannheim, … [Read more...] about What is SAP Business Suite