FI-MM: The integration between FI-MM in SAP-FICO

FI-MM: The integration between FI-MM happens in T-code OBYC. 
  1. When PO is created :
       ---- No Entry -----
  2. When GR is posted 
      Inventory Account dr (Transaction Key BSX in OBYC)
            To GRIR account (T.Key WRX in T-code OBYC)
  3. When Invoice is posted
      GRIR account Dr.
      Vendor account  Cr.
  4. Payment made to Vendor
      Vendor A/c Dr
            To Bank Clearing A/c Cr.
Points to know : Movement Types, Assignment of Movement types to T-keys (T-code OMJJ), Value string (I also need some information on this) , OMWN and OMWB transactions.  
There is a close integration b/w FI & MM, actually document flows from MM to FI in the following areas such as,
   
 1. Movement Types:
 
Used to enable the system to find the predefined posting rules determining how the accounts of financial accounting system are to be posted & to update the stock fields in the matrl master data.(Goods Receipt, Goods Issue, etc)
   
 2. Valuation Class:
   
Assignment of material to grp of gl account, used to determine the gl accounts that are updated as a result of goods movement.
   
 3. Transaction/Event key:
   
Used to control the storage or filing of documents & assignment of documents.Used to differeniate b/w various transactions such as goods movement tht occur in inventory.
   
 4. Material Type:
   
Each material should assign mtrl type in mtrl master record used to update whether changes made in qty are updated in material master record & change in value also updated in stock account.


Happy Blogging,
Dinesh

Difference between Posting Key and Field Status Variant

'Posting Key Variant ' Controls- fields of Posting Key and 'Field Status Variant' controls fields of G/L Account.Fields of G/L Account which are controlled by FSV can see in T.Code OBC4 and Fields of Posting Keys in SPRO-FAGS-Document- Line Item.  Both can controls common fields, then SAP applies 'SDRO' rule.
SDRO rule. The fields can be Suppressed, Displayed, Required, Optional.
Posting is key controls 
 - which type of accounts can be posted to
 - whether the line item is debit or credit
 - and the field status of the document line item
Where as FSG (group into Field status Variant) controls only the the document line item for that account.
There are only three field status options during document entry:
 - Suppressed
 - Required
 - Optional
If both Posting key and FSV has the same field as Required and optional, system uses the link rules, takes the one which has the highest priority(in this case required).
But in case of Master record Field status which is controlled by Account Group, there are 4 options of field status:
- Suppressed
- Display
- Required
- Optional
Account group defines: 
 a. length of gl account number 
 b. no. ranges of the gl account numbers 
 c. field status of the GL account master data in the company code segment.(which fields to appear when you create a gl account) (to control...double click on your GL account group in Screen transaction code OBD4) 
Posting key defines: 
 a. whether the line item is a debit or credit 
 b. to which type of account the amount should be posted to(ex: when you use posting key 40,  you will be able to post to gl accounts.  When you use Posting key 01, you will be only able to post to customer account. 
 c. document screen layout during posting of a document. (which fields to appear in a document...double click on the posting key and select field status and make the entries as required /optional etc) 
Field status group defines: 
Document screen layout during posting of a document. (which fields to appear in a document...double click on the field status group and select fields and make the entries as required /optional etc) 
LOGIC: you assign field status variant to the company code, FSV is a bundle of field status groups. 
ex: in FSG G001 you have made the text as required entry...you assigned the field status group g001 to cash account..so when you use cash account and try to post a document it will definitely prompt you to enter the text (text made as required.) 
Both FSG and PK control the same feilds in a document.There is no dominance between FSG and Posting keys..but we should know the allowed combinations.... 
If text is made required in PK and suppressed in FSG..the system will issue a error msg..Rules for PK...and FSG....is set incorrectly for SGTXT field. 
Permissable combinations: 
Pk          R/S     O/S   R/o     R    S  O 
FSG         S/R     S/O   o/r     R    S  O 
Result   e   SD      RD    NP   NP  NP 
  R  = required 
  s   = suppressed 
  e   = error 
SD  = Suppressed dominates 
Rd  = required dominates 
 np  = no problem

What is Hold and Parking of Document?

Hold Document:
It is for short term and is used when tranaction Dr or Cr is uncertained and generally its is used for external purpose.  eg: Advance from potential customer
Parking Document:
Its is for longer period generally used for internal purpose.  eg: Advance made for employes.
What is the main purpose of this document. Why we are using this one to in FI?  How it is useful?
Parking documents is used when we need to get any clarification regarding some account.
We can temporarily park or store this document till we get it cleared or approved.
Then we can post it.
Remember.... parking does not update the accounts....... it just stores the document..... whereas posting will update the accounts....( for example.... the reducing/increasing of the account balances).
The TC for Parking Documents is F-02 -> enter the required details ->go to the menu (at top )  ->Document-> Park.
To post a parked document : FBV0-> go to the menu Document-> Post.
Other TCs used pertaining to Parking of Documents are :
FV50 : Post / Delete : Single Screen Transaction
FBV2 : Change
FBV3 : Display
FBV4 : Change Header
FBV5 : Display Changes
FBV6 : Refuse

Configuration for Special Purpose Ledger

Configuration for Special Purpose Ledger
SAP FI Question:
Why do we use special purpose ledger?
What are the configurations we need to make?
We are using the Special Purpose Ledger for statutory reporting or mangement reporting purpose.  It also help us in doing single entry, adjstment posting like income tax deperication.
Steps for cofig.
- Define Table Group
Financial Accounting -> Special Purpose Ledger -> Basic Settings -> Tables -> Definition -> Define Table Group
- Maintain Field Movement
GCF2
IMG Menu Path :
Financial Accounting -> Special Purpose Ledger -> Basic Settings -> Master Data -> Maintain Field Movements
- Maintain Ledger for statutory ledger
GCL2
IMG Menu Path :
Financial Accounting -> Special Purpose Ledger -> Basic Settings -> Master Data -> Maintain Ledgers -> Copy Ledger
Assign  Co Code
Assign Activities
- Define Versions
GCW1
IMG Menu Path :
Financial Accounting -> Special Purpose Ledger -> Periodic Processing -> Currency Translation -> Define Versions
- Set Up Exchange Rate Type
OC47
IMG Menu Path :
Financial Accounting -> Special Purpose Ledger ® Periodic Processing -> Currency Translation -> Set Up Exchange Rate Type
- Create Number ranges
GC04
IMG Menu Path :
Financial Accounting -> Special Purpose Ledger -> Actual Posting -> Number Ranges -> Maintain Local Number Ranges
- Create Currency Translation document type
GCBX
IMG Menu Path :
Financial Accounting -> Special Purpose Ledger -> Actual Posting -> Maintain Valid Document Type
- Create Posting period variant
GCP1
IMG Menu Path :
Financial Accounting -> Special Purpose Ledger -> Actual Posting -> Posting Period -> Maintain

Steps for BRS

Bank Reconcilliation Statement
The following are the steps for BRS:
Create Bank Master Data - This can be created through T.Code FI01 or you can also create the house bank through IMG/FA/Bank accounting/Bank account
2. Define House Bank
3. Set up Bank selection payment programe-  IMG/FA/ARAP/BT/AUTOIP/PM/Bank selection for payment prg.
   a. setup all co codes for payment transaction - Customer and vendors
   b.setup paying co codes for payment transactions
   c.setup payment method per country
   d.setup payment method per co code for payment transaction
   e.setup bank determination for payment transaction
Please go for Cheque mangement using T code FCHI     (IMG/FA/ARAP/BT/OP/AutoOp/PaymentMedia/CheckManagement) and for void reasons FCHV. You can create Bank Reconcilliation statement by TC FF67 (SAP/AC/Treasury/CashManagement/Incomings/ManualBankStatement) . Don't forget to keep the opening Balance as zero. Use FBEA for post process.
All the steps together will lead to (FF67) Bank reconciliation statement.

Step-by-Step Procedure for Customizing an Electronic Bank Reconciliation Statement

To set up Electronic Bank Statements (EBS) 
Processing in SAP for most customers in North America. 
1. Create House Bank and Account ID (FI12) 
2. Setup EDI Partner Profile for FINSTA Message Type (WE20) 
3. Configure Global Settings for EBS (IMG) 
     - Create Account Symbols 
     - Assign Accounts to Account Symbols 
     - Create Keys for Posting Rules 
     - Define Posting Rules 
     - Create Transaction Types 
     - Assign External Transaction Types to Posting Rules 
     - Assign Bank Accounts to Transaction Types 
4. Define Search String for EBS(Optional) 
    - Search String Definition 
    - Search String Use 
5. Define Program and Variant Selection 
Additional information is also available in the SAP Library under:
Financial Accounting > Bank Accounting (FI-BL) > Electronic Bank Statement > 
Electronic Account Statement Customizing.

SAP Chart of Account

It defines the structure of G/L accounts.  It is a list of G/L accounts
used by one or more company codes. In that Chart of account you have to specify
the length of G/L accounts.
In SAP all the entries are document oriented. so from the balance sheet of
any entry you can identify the root of an entry. so it's like a flow chart in
computer terms. 
There are threee types of Chart of Account are there.
1.Operative Chart of Accounts
2.Group of Chart of Accounts
3.Country Chart of Accounts.
1.Operative Chart of Accounts is a Chart of Account you use for the company
code.
2.For different chart of accounts(operative COA) for different company code,
you can group the chart of account into one chart of account for internal
reporting, but cross company code controlling is not possible, because of
different chart of account for different company code. 
3.For different country you can have different reporting system. so for
different company code you can have different company code, but can have same
Operative Chart of account, so cross company code controlling is possible.

The difference between INVOICE and BILLING in SAP.

Both are same in SD point of view.
- In SD terminology we call as Billing Document and
- In FI terminology we call as INVOICE.
- In MM again only INVOICE will be there for Vendors.
Invoice is document indicating to delivery goods and Billing is a receipt of
payment.
If we receive the goods from vendors that is called bill if we give the
goods to customer that is called invoice. 
Bill means we have to pay the amount against bill invoice means we have to
receive the amount against invoice.
Invoice is for both : Vendor Invoice and Customer Invoice.
Billing Tcodes:
-  VF01 create billing document. The delivery order comes up auto.
-  VF02 the billing doc comes up auto . View the accounting enteries
  
Invoice Tcodes:
-  FB60 Create invoice with respect to rawmaterial and tax.
-  FB70 Invoice entries with respect to sales and tax

SAP FI Question and Answers

QUESTION: 1
Which of the following statements are correct?
A. More than one chart of accounts can be created for each client
B. The chart of accounts contains all the G/L accounts, vendor accounts and customer
accounts
C. More than one company code can be allocated to the same chart of accounts
D. The chart of accounts controls all the customising settings in the R/3 system
E . All accounts within a chart of accounts must have the same tax code
Answer: A
QUESTION: 2
What status reports does Cash Management and forecasting include?
A. Cash management position
B. Liquidity forecast
C. Credit limit report
D. G/L account balances
E. Bill holdings
Answer: A,B,D
QUESTION: 3
Which of the following are clearing procedures in accounts receivable?
A. Incoming payment
B. Down payment request
C. Credit memo
D. Transfer posting
Answer: A,C,D
QUESTION: 4
When creating an Overhead Cost Order, the first order information which must be
entered is:
A. Order status
B. Order type
C. Settlement type
D. Curreny
E. Classification code
Answer: C
QUESTION: 5
When creating an Overhead Cost Order, the settlement rule must be entered in the control
data. Which settlement receivers are available for internal orders?
A. Cost center
B. Orders
C. General ledger accounts
D. Asset
E. Vendor
Answer: A,B,C,D
QUESTION: 6
In Controlling, a distinction is made between master data, planning, actual data and the
information system. Which of the following master data belongs to Controlling?
A. G/L account
B. Work center
C. Cost center
D. Activity type
E. Supplier
Answer: C,D
QUESTION: 7
Withing Overhead Cost Controlling activities are calculated. A Sender/Receiver
relationship exists. However, not all Sender/Receiver combinations are allowed. Which
of the following combinations make business sense?
A. Sender. Cost Center, Order, Project Receiver. Cost Center, Order, Project
B. Sender. Order Receiver. Cost Center, Project
C. Sender. Cost Center Receiver. Cost Center, Order, Project, Cost Object
Answer: C
QUESTION: 8
Period closing activities are also performed in Controlling. This is dependent on certain
prerequisites. Which of the following are MINIMUM criteria before it makes sense to
carry out period closing?
A. The posting period has been closed.
B. Materials have been withdrawn.
C. Personnel costs have been incurred.
D. Overhead has been incurred.
E. An order was closed.
Answer: C
QUESTION: 9
A chart of accounts
A. can be allocated to multiple company code
B. can be defined as the group chart of accounts
C. only contains definitions for G/L accounts
D. can only allocated to one company code.
Answer: A
QUESTION: 10
A client. ( Single Choice)
A. may only contain a single chart of accounts
B. may contain multiple charts of accounts
C. may only use one currency type
D. may only have one controlling area
Answer: B
QUESTION: 11
Identify the correct statement(s) relating to how the main business processes are
integrated in the SAP R/3 System. ( Multi Choice)
A. A purchase requisition is a documented request to purchase goods or services. In SAP
it can be created manually or automatically.
B. A goods receipt is the recording of the movement of materials into the warehouse. In
SAP, a financial document which updates the inventory account and an accrued liability
account is created
C. The Invoice receipt and verification process compares the vendor invoice with the
purchase order and goods receipt. However, the corresponding financial transaction must
be entered through the financial module of R/3.
D. In SAP, payment processing reduces the liability to a vendor and a company¡¯s cash
balance, records discounts taken and disburses payment.
E. A customer delivery is the transfer of the ownership of goods. A customer delivery
includes, creation of a delivery document, picking the goods for shipment; physically
transferring the goods to the customer and financially recording the goods issue.
Answer: A, B, D
QUESTION: 12
Identify the correct statement(s) regarding organizational elements within the R/3
System. ( Multi Choice)
A. The Sales area combines the sales organization, distribution channel, and division.
B. The Purchasing Organization is responsible for the purchasing for the only one plant.
C. A plant is a location in which inventory quantities and values are stored or
manufactured.
D. A Controlling area can comprise several company codes using different chart of
accounts but must operate in the same currency.
E. A profit center is used to generate income statements and operating profit statements.
Answer: A, C, D, E
QUESTION: 13
Identify the correct statements. ( Multi Choice)
A. All areas of an organization that are to be integrated into the R/3 Production system
should be included under one client.
B. The term ¡°client dependent¡± refers to tables or data that relate only to the client
which was accessed during the log on process.
C. Due to the integrated nature of SAP, there are certain core organization element that
cut across the modules. Client and company code are two of these core elements.
D. To determine the number of clients required, the focus is placed on data access and
sharing strategies.
Answer: A, B
QUESTION: 14
Which of the following statements is true ? ( Single Choice)
A. A Company code can belong to more than one controlling area.
B. A plant must be allocated to a company code
C. A controlling area and a company code must have the same local currency.
D. A business area and a company code are assigned to each other in the corporate
structure IMG
Answer: B
QUESTION: 15
Identify the correct statements relating to the Implementation Guide( Multi Choice)
A. When creating a project in the IMG, the application areas and countries are selected
from the Enterprise IMG
B. The number of implementation activities can be reduced by creating Project IMG
views, such as a view for ¡°mandatory activities¡±
C. The Project IMG must include all customizing activities for all R/3 applications.
D. The SAP Reference IMG is generated for the application modules to be implemented
in a company and for the different countries
E. Customizing transactions can be accessed from the SAP Reference IMG, Project IMG
and the Project views.
Answer: Pending. Please put your suggestions to terry@troytec.com
QUESTION: 16
What characteristics do roles have in the Workplace? ( Multi Choice)
A. Roles describe business processes in a company
B. Roles contain a collection of activities that a user who is assigned to this role can
execute
C. Roles represent a range of executable functions in a company that users can assign
themselves to
D. The authorizations required to execute the assigned functions are automatically linked
to roles
E. Roles contain MiniApps
Answer: Pending. Please put your suggestions to terry@troytec.com
QUESTION: 17
What content elements of the mySAP.com Workplace are provided? (Multy)
A. The Workplace contains role-based navigation options for R/3 transactions, reports,
and other links to various systems.
B. The Workplace is a completely personalizable working environment.
C. The Workplace contains role-specific information and role- based access to the
Marketplace.
D. The Workplace is used exclusively as a LaunchPad for Employee Self Service with
information for employees.
E. The Workplace contains personal Favorites.
Answer: Pending. Please put your suggestions to terry@troytec.com
QUESTION: 18
What are MiniApps?(Multy)
A. MiniApps are small applications that are started automatically when the Workplace is
called.
B. Miniapps are small applications that can be called from the Workplace.
C. MiniApps are small applications that communicate continuously with the implemented
SAP products
D. MiniApps are Java Applets that are loaded from the Workplace to the user client.
E. MiniApps are role-specific applications that can contain more activity options.
Answer: Pending. Please put your suggestions to terry@troytec.com
QUESTION: 19
About evolution in the world of business, we can affirmate that (Please choose the correct
sentence):
A. The internet revolution could turn available to companies the use of ERP
functionality.
B. The next generation of “new dimension” products appeared taking functionality
out of the company, to bring value through extending the Internet Revolution.
C. The internet has driven to a collaborative environment where value is created through
collaboration within business comunities.
D. In the first the companies were looking at Cost reduction and efficiency through
integration of business comunities.
Answer: C
QUESTION: 20
About the definition of ERP and e-business functionalities, we can say that (Note: we can
have more than one correct sentence. Please select the sentences you think they are
correct):
A. ERP offers enterprise centric functionality (general ledger, payroll, order entry) to
integrate core, internal processes.
B. ERP is mySAP Financials and mySAP HR.
C. ERP is SAP R/3, while e-business is mySAP.com.
D. About Business Model, ERP can be considered as enterprise centric and e-business, as
extended and collaborative.
E. About Architecture, ERP can be considered as an integrated system and e-business, as
an integrated system and an open integration platform.
F. About Processes, ERP can have them integrated, core within enterprises and
collaborative, beyond company boundaries.
Answers: A, C, D, E.
QUESTION: 21
What is a SAP Business Object (Please choose the correct sentence)?
A. It is all the transaction data generated via transactions.
B. It is the instancied class of the Class Builder.
C. It is composed of tables that are related in a business context, including the related
appplication programs and it is maintained in the Class Repository.
D. It is the representation of a central business object in the real world, such as an
employee, sales order, purchase requisition, invoice and so on.
E. It is a sequence of dialog steps that are consistent in a business context and that belong
together logically.
Answers: D
QUESTION: 22
About BAPI (Business Application Programming Interface), what is true (Note: we can
have more than one correct sentence. Please select the sentences you think they are
correct)?
A. It is a well-defined interface providing access to processes and data of business
application systems.
B. BAPIs offer a stable, standardized interface for integrating third-party applications and
components in the Business Framework.
C. A BAPI is assigned to one and only one business object.
D. In the R/3 Enterprise version (4.7) we can use BAPI to create an internal order inside a
customized ABAP program.
E. A business object in the Business Object Repository (BOR) can have many methods
from which one or several are implemented as BAPIs.
Answers: A, B, C, D, E
QUESTION: 23
What can we say about ALE (Application Link Enabling, Note: we can have more than
one correct sentence. Please select the sentences you think they are correct)?
A. Business processes cannot be distributed using ALE.
B. The ALE concept is related to an enterprise structure with areas that have central tasks
and areas with tasks that are decentralized.
C. The applications are integrated via a central database.
D. The applications are integrated via the message exchange.
E. The ALE concept supports the implementation and operation of distributed SAP
applications.
Answers: B, D, E
QUESTION: 24
A company code is:
A. an independent accounting entity (the smallest organization element for which a
complete self-contained set of accounts can be drawn up).
B. an organizational unit in an enterprise that represents a closed system used for cost
accounting purposes.
C. an organizational unit that provides an additional evaluation level for the purpose of
segment reporting, for example.
D. a dependent accounting entity, according to Fiscal Year.
E. the highest level in the R/3 system hierarchy.
Answers: A
QUESTION: 25
Consider the following sentences:
A. 7.1. The variant principle is a three-step method used in R/3 to assign special
properties to one or more R/3 objects.
B. 7.2. One of the disadvantages to use variants is that it can't deal with the maintenance
of properties, which are common among several business objects.
C. 7.3. For using the variant principle, you must define the variant, populate it with
values and assign it to the R/3 objects.
D. 7.4. This principle is used for Fiscal Years, Posting Periods and so on.
Which of them is false?
A. 7.1 and 7.2.
B. 7.1 and 7.3.
C. 7.1.
D. 7.2.
E. 7.3.
Answers: D
In fact, the main advantage of using variants is that it is easier to maintain properties,
which are common among several business objects.
QUESTION: 26
Consider the following sentences:
A. 8.1. A fiscal year has to be defined by means of separating business transactions into
different periods.
B. 8.2. Special periods are used for postings, which are related to the process of the yearend
closing. In total, 16 special periods can be used.
C. 8.3. The Fiscal Year variant only defines the amount of periods and their start and
finish dates.
D. 8.4. The Fiscal Year is defined as a variant, which is assigned to the chart of accounts.
Which of them are true?
A. 8.1 and 8.2.
B. 8.1 and 8.3.
C. 8.2 and 8.3.
D. 8.2 and 8.4.
E. 8.3 and 8.4.
Answers: B
QUESTION: 27
What is an independent fiscal year variant (Please choose the correct sentence)?
A. It is a variant which the postings periods are only equal to the months of the year.
B. It is a variant which you can define different number of periods, according to the year.
C. It is a variant which each own fiscal year uses the same number of periods, and the
postings periods always start and end at the same day of the year.
D. It is a variant which allows the use of different number of posting periods.
E. It is a variant not normally used because of its particularity.
Answers: C

SAP FI Definitions

Company Code

In
terms of International Accounting Standards (IAS), the legal or independent
accounting unit is the central concept of financial accounting. One of the
basic requirements of an independent accounting unit is the publication of a
balance sheet and a profit and loss statement. In the SAP system, the company
code represents the independent accounting unit. It is the central
organizational entity that integrates accounting data from many different
company areas.

Business Area

Apart
from the company code, organizational units, which represent a specific
business segment or responsibility centre, can also be created to assign value
transactions entered in financial accounting. The business area can contain any
type of entity (division, profit centre, plant, office). In a document, the
business area is included for each line item to allow classification of
postings in the general ledger, which enables generating a number of views of
data that is entered in different company codes. All major items, such as the
complete profit and loss statement, fixed assets, receivables and payables, and
goods in stock are available for evaluations under the business area.

Document

R/3
FI is based on strict adherence to the document principle. Each business
transaction is filed in the system as a transaction-related posting document.
The document is a separate and coherent unit containing information that
results in balances and line items. A uniform document creation system, clear
posting rules, and strict document verification for form and content ensure
that only correct and complete posting documents enters the system. As a
result, all account balances and summary data in the FI component can be traced
back to correctly posted single documents.

Chart of Accounts

The
FI component offers a flexible method for setting up a general ledger to meet
various goals concerning legal issues, value flow, and classification of
postings. The chart of accounts is a classification system defined by
accounting to record values or value flows.

G/L Accounts

Each
account used for posting is defined in the general ledger and contains
information that reflects or describes its function. This information is stored
in the master record of an account. It controls how business transactions are
entered and posted to the account as well as how posting data is processed. G/L
account master data is divided into two areas:

Chart of accounts area:

This
area contains information that applies to the complete master record (G/L
account number, account name, P&L account, or balance sheet account). In
addition, you use it to store data that controls the creation of a master
record in the company code (account group and screen layout).

Company code-specific area:

This
area contains data that controls the entry of business transactions for the
related account and account management in the respective company code
(currency; open item management).

Chart of Depreciation 

Charts of depreciation are used in order to manage various legal
requirements for the depreciation and valuation of assets. These charts of
depreciation are usually country-specific and are defined independently of the
other organizational units. A chart of depreciation, for example, can be used
for all the company codes in a given country