The major components of Chart of Accounts are: a) Chart of account key b) Name c) Maintain Language d) Length GL account number e) Controlling Integration f) Consolidation-Group chart of accounts g) Block...

By using transaction code OB45 or path you can create Credit Control Area in SAP SPRO> enterprise structure >maintain structure>definition>financial accounting>maintain credit control area...

A short-end fiscal year results when you change from a normal fiscal year to a non-calendar fiscal year, or other way around. This type of change happens when an enterprise becomes part of a new co-corporate...

The purpose of ” Document type” in SAP is a) Number range for documents are defined by it b) Types of accounts that can be posted are controlled by it, e.g Assets, Vendor, Customer, Normal GL account...

The Vendor and Customer codes are stored at the client level. It means that by extending the company code view any company code can use the customer and vendor code.

Tolerance determines whether the payable places matching or tax hold on the invoice. The following are the instances of tolerance can be defined for Logistic Invoice Verification. a) Small differences...

APP stands for ‘Automatic Payment Program’; it is a tool provided by SAP to companies to pay its vendors and customers. APP tools help to avoid any mistakes taken place in posting manually. Also, when...

Payment terms are created in the configuration and determine the payment due date for vendor/customer invoice. They are stored on the customer or vendor master record and are pulled through onto the customer/vendor...

In certain companies, especially the one dealing with high cash transactions, it is not practical to create new master records for every vendor trading partner. One time vendors allows a dummy vendor code...

The following steps are the standard stages of the SAP payment run a) Entering of parameters ( Vendor Accounts, Company Codes, Payment Methods) b) Proposal Scheduling – the system proposes the list...

‘Residual payment’ and ‘Part payment’ are the two methods for allocating partial methods from customers. For example, an invoice for $100 is generated, customer has paid $70. Now this $70 will...

‘Dunning’ is the process by which payment chasing letters are issued to customers. SAP can determine which customers should receive the letters and for which overdue items. Different letters can be...

At the end of the year, profit and loss accounts are cleared down to the retained earnings balance sheets account. The field contains an indicator which is linked to a specific GL (General Ledger) accounts...

Recurring entries can eliminate the need for the manual posting of Accounting documents which do not change from month to month. For example, an expense document can be generated which can be scheduled...

Value fields are number or value related fields in profitability analysis such as quantity, sales revenue, discount value etc.

Statistical internal orders are dummy cost objects used for reporting and analysis purposes. It must be posted to in conjunction with a real object such as a cost center.

You can use internal orders for a) Overhead Orders: It monitors internal jobs settled to cost centres b) Investment Orders: It monitors internal jobs settled to fixed assets c) Accrual Orders: Offsetting...

The next step after the sales have been made is to keep a record of goods sold and money collected. This can also be done in the SAP SD module. The following are the key features of credit management:...

A special agreement is granted to the user on a specific sales volume over a particular time, known as a rebate agreement. To customize rebate processing, follow these steps: Define rebate agreement...

Create an accurate account estimate of demand using past purchasing patterns. Work with the supplier to track when back-ordered items are available. Increase stocking capacity. Diversify suppliers,...