Professional Documents
Culture Documents
Volume 1 of 4
Purpose
Audience
This document is intended for core users who are familiar with SAP R/3
Financial Accounting module configuration activities.
Organization of Documents
Volume 1
Volume 2
Deals with General Ledger module settings like Chart of accounts, cash
journal, bank accounting, open item clearing, financial statement versions,
retained earnings and integration with other modules
Volume 3
Volume 4
Conventions Used
Typeface/symbol Indicates
Bold 1) Where ever stress has to be made on a
particular point.
Italic For reference notes Example Note
Tcode Transaction codes to go to particular
transaction
PF3020
Document details:
Name Version No. Description
FI CD 1.0 This is the document for configuration of
Finance module in SAP for TEIL SAP
Implementation
Revision details:
Action taken Preceding New Revision
(Add/del/chg) Page No. Page No. Description
PF2060C
TABLE OF CONTENTS
1 ENTERPRISE STRUCTURE......................................................................................................................9
1.1 GENERAL SETTINGS......................................................................................................................................9
1.1.1 Set countries......................................................................................................................................9
1.1.2 Set geocoding....................................................................................................................................9
1.1.3 Currencies.........................................................................................................................................9
1.2 DEFINITION..................................................................................................................................................9
1.2.1 Financial Accounting........................................................................................................................9
1.3 ASSIGNMENT..............................................................................................................................................12
1.3.1 Financial Accounting......................................................................................................................12
2 GLOBAL SETTINGS.................................................................................................................................14
2.1 FINANCIAL ACCOUNTING GLOBAL SETTINGS...................................................................................................14
2.1.1 Company Code...............................................................................................................................14
2.1.2 Vat Registration Number...............................................................................................................15
2.1.3 Business Area..................................................................................................................................16
2.1.4 Fiscal Year......................................................................................................................................17
2.2 DOCUMENT................................................................................................................................................18
2.2.1 Posting Periods...............................................................................................................................18
2.2.2 Document Number Ranges..............................................................................................................19
2.2.3 Document Header...........................................................................................................................20
2.2.4 Line Item.........................................................................................................................................24
2.2.5 Default Values For Editing Documents..........................................................................................31
2.2.6 Recurring Entries............................................................................................................................31
2.2.7 Changes Display.............................................................................................................................31
2.2.8 Accounting Document Archiving....................................................................................................32
2.2.9 Parked Document- standard settings used......................................................................................32
2.2.10 Taxes on Sales/Purchases - Basic Settings..................................................................................32
2.2.11 Taxes on Sales/Purchases - Calculation .....................................................................................33
2.3 WITHHOLDING TAX ...................................................................................................................................35
2.3.1 Extended Withholding Tax..............................................................................................................35
2.4 INDIA LOCALIZATION MENU.........................................................................................................................48
2.4.1 Preparatory Activities.....................................................................................................................48
2.4.2 Global Settings................................................................................................................................48
2.4.3 Accounting......................................................................................................................................51
2.4.4 Forms..............................................................................................................................................54
2.4.5 Tax Deducted at Source - Extended Withholding Tax....................................................................54
2.5 TEXT DETERMINATION.................................................................................................................................61
2.6 NUMBER RANGES ......................................................................................................................................61
2.7 REPORTS....................................................................................................................................................62
2.8 MESSAGE CONFIGURATION...........................................................................................................................62
1 Enterprise Structure
This chapter covers the requirements and the customization details of the Financial Accounting enterprise
structure. This includes configuration for setting up the enterprise structure and assigning organizational
units to the structure defined.
1.1.3 Currencies
In this step , the exchange rates for various currencies are set.
Please note that the above needs to be updated with the current rates every time.
1.2 Definition
The Company code is created here. A company code is a legal entity for which balance sheet and PL
account are prepared. Here STBG company code has been created for the Turbine business Group of
Triveni. All transactions will be with respect to this company code only.
Please note that in production client we will not be able see this details in the given path. We need to
select Edit company code data option to see the details.
Business areas are created for tracking the operations of divisions in a company code.
No configuration done
No configuration done
No configuration done
1.3 Assignment
2 Global Settings
This chapter covers the requirements and the customization details of the Financial accounting global
settings. This includes configuration for business area, fiscal year and document settings.
In this activity, various global specifications for the company code can be made. In addition, one can look
at the most important specifications of the company code at any time in the overview. This includes,
among other things, the chart of accounts and the fiscal year variant.
No configuration done
2.2 Document
2.2.1 Posting Periods
2.2.1.1 Define variants for open posting periods
This configuration is done to facilitate the flexibility of allowing the transactions in the desired period only.
The settings here determine which periods are open for posting.
This configuration is done for specifying the system what number ranges the documents should bear.
Here different document types are created and number ranges are assigned to them.
The document types along with the number range and account types given is as follows
2.2.3.11.1 Define maximum permissible exchange rate difference per company code
2.2.3.11.2 Define maximum permissible exchange rate difference per foreign currency
The posting keys determine the type of transaction, account type and whether debit or credit.
The field status groups created with in a variant are attached to the individual GL accounts master data.
They in turn affect the fields during document entry.
The field status groups for STBG variant are shown below.
Table V_T001D
Transaction Code OB28
Menu Path IMG → Financial Accounting → Financial Accounting Global Settings
→ Document → Line Item → Define validations for posting
Details of the No configuration
configuration
items
Details of the No Configuration
configuration
The frequently used tax jurisdiction codes are IN00 in SD and 0200 in MM transactions.
2.2.10.8 Switch Off Tax Translation between Local and Document Currency
No configuration done
A1 A ALLHABAD-CST
A2 A ALLHABAD-LST
A8 A Service items Interstate - ALLHBD
A9 A Service items Intrastate - ALLHBD
B1 A Bangalore Normal
B2 A Bangalore LST
B4 A DBO Interstate(CST)
B5 A DBO Interstate(LST)
B6 A DBO Out side state(CST)
B7 A Stock transport from Bangalore plant
B8 A Service items interstate
B9 A Service items intrastate
D1 A DELHI-CST
D2 A DELHI-LST
D8 A Service items Interstate - DELHI
D9 A Service items Intrastate - DELHI
E1 A
F0 A Free of Charge
H1 A Hyderabad CST
H2 A Hyderabad LST
H8 A Service items Interstate - HYD
H9 A Service items Intrastate - HYD
K1 A KOLHAPUR-MAH-CST
K2 A KOLHAPUR-MAH-LST
M1 A MUMBAI-MAH-CST
M2 A MUMBAI-MAH-LST
M8 A Service items Interstate - MAH
M9 A Service items Intrastate - MAH
P1 A PUNE-MAH-CST
P2 A PUNE-MAH-LST
V0 V Zero tax
V1 V Excise duty16%
Z1 V Zero Tax for asset acquisitions
ZZ A Zero tax code
Table
Transaction
Details of the No configuration
configuration
Withholding Tax refers to tax deducted at source. In this step, a country needs to be defined to enable
further settings for TDS to be done.
Table T059O
Details of the Section 194H was configured for the purpose of sales commission
configuration
In this step, keys need to be defined for each section under the IT Act. These keys are in a later step
attached to Tax Types.
In this activity, reasons for exemption from withholding tax have to be defined, for country “IN”. These
indicators can be entered in the vendor master record or in the company code withholding tax master
record information. These will be entered as and when needed.
Types of recipients are defined for each Tax Type, for country “IN”. The types defined are CO for
Companies; GO for Government & OT for Others.
No configuration done
2.3.1.2 Calculation
Withhld Tax W D
Type
Description Withholding tax Withholding tax
on Invoice on Advance
verification payment
Note :
Additionally, the checkbox “Liable” in the vendor master and “W/tax” in the customer master must also be
switched on.
In this activity, tax types applicable at the time of posting of payments to vendors need to be defined.
These Tax Types too must be stored in the vendor or customer master, which are subject to TDS
deductions. These Tax Types are specially meant for deduction of TDS at the time of payment of advance
to vendors.
However, it may be noted that if corresponding Tax Codes (refer later chapter), for these Tax
Types, are entered at the time of invoice postings (along with corresponding Tax Codes for Tax
Types for “invoice posting”), TDS will be deducted both at the time of posting invoice and
outgoing payment!!!
Hence, it is advised that while Tax Types both for “invoice posting” and “payment posting” may
be stored in the vendor master, corresponding Tax Code must be stored only for “invoice
posting”. While making a down payment to the vendor, the Tax Code for “payment posting” will
obviously appear blank, and needs to be removed at that point.
No configuration done
In this step, Tax Codes need to be specified. These codes are attached to Tax Types in the vendor and
the customer masters. The codes contain the rates of tax, which includes the surcharge element (e.g. if
tax rate is 10.00% and surcharge is 10%, the rate to be specified in the field “With/tax rate” is 11%).
2.3.1.4.2 Define Processing Key for Modified Tax Amount (No Configuration)
Certain IT sections specify that no TDS should be deducted if the total invoices posted for the vendor do
not exceed a base amount. (e.g. under sec.194C, TDS should not be deducted if the total of invoices
posted during a year for a particular vendor does not exceed Rs.20,000. If it exceeds the base amount,
TDS must be deducted on all invoices posted till date.
In this step, the minimum base amount must be specified. It may be noted that the accumulation (of
invoices per year) is set in the Withholding Tax Type (– indicator under heading “Accumulation Type”).
No configuration done.
In the above activity, the following specifications must be made for each Tax Type:
• Indicators “With/tax agent” and “Subject to w/tx” must be clicked to activate deduction of
TDS on vendors and customers, respectively.
• Validity period must be specified for each Tax Type, under the vendor data. As regard
customers, the validity period is specified in the customer master itself.
• In the field “W/tax number”, the TAN numbers for each section have been stored.
Vendor data
Company Withhold With/tax W/tax Oblig. to W/tax number Subject
Code tax type agent obligated w/tax until to w/tx
from
STBG D X 01.05.2001 31.12.9999 TAN No T0063A X
(S) BGL
STBG W X 01.05.2001 31.12.9999 TAN No T0063A X
(S) BGL
2.3.1.7 Postings
In this step, G/L account determination is done for each Tax Type, for Chart of Accounts “STBG”, for SAP
standard process “WIT”.
The rules for the process key have been configured for account determination to be done at the level of
the tax type.
No configuration done
No configuration done
2.3.1.7.4 Define Accounts for Withholding Tax Offsetting Entry (No Configuration)
No configuration done
2.4.3 Accounting
Same as 2.2.11.5.
DLFC DR MSUSP
EWPO CR CLEAR
EWPO DR RG23AED
EWPO DR RG23BED
EWPO DR RG23SED
GRPO CR CLEAR
GRPO DR ONHOLD
GRPO DR RG23AED
GRPO DR RG23BED
GRPO DR RG23SED
MRDY CR PLAAED
MRDY CR PLABED
MRDY CR PLASED
MRDY CR RG23AED
MRDY CR RG23BED
MRDY CR RG23SED
MRDY DR CLEAR
MRRD CR PLAAED
MRRD CR PLABED
MRRD CR PLASED
MRRD CR RG23AED
MRRD CR RG23BED
MRRD CR RG23SED
MRRD DR CLEAR
MRWO CR PLAAED
MRWO CR PLABED
MRWO CR PLASED
MRWO CR RG23AED
MRWO CR RG23BED
MRWO CR RG23SED
MRWO DR CLEAR
OTHR CR PLAAED
OTHR CR PLABED
OTHR CR PLASED
OTHR CR RG23AED
OTHR CR RG23BED
OTHR CR RG23SED
OTHR DR MSUSP
TR6C CR PONHLD
TR6C DR PLAAED
TR6C DR PLABED
TR6C DR PLACESS
TR6C DR PLASED
UTLZ CR PLAAED
UTLZ CR PLABED
ETT Sub TrnTyp DC ind Acct name
UTLZ CR PLACESS
UTLZ CR PLASED
UTLZ CR RG23AED
UTLZ CR RG23BED
UTLZ CR RG23SED
UTLZ DR CLEAR
S
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BED BED r OH sse Hld
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01 57CM 0000143100 0000143101 0000230003 0000143103 0000143102 0000380000 0000230009 0000143120
01 57CM 01 0000143100 0000143101 0000230003 0000143103 0000143102 0000380000 0000230009 0000143120
01 57FC 0000143100 0000143101 0000230003 0000143103 0000143102 0000380000 0000230009 0000143120
01 57FC 01 0000143100 0000143101 0000230003 0000143103 0000143102 0000380000 0000230009 0000143120
01 57GR 0000143100 0000143101 0000230003 0000143103 0000143102 0000380000 0000230009 0000143120
01 57GR 01 0000143100 0000143101 0000230003 0000143103 0000143102 0000380000 0000230009 0000143120
01 57NR 0000143100 0000143101 0000230003 0000143103 0000143102 0000380000 0000230009 0000143120
01 57NR 01 0000143100 0000143101 0000230003 0000143103 0000143102 0000380000 0000230009 0000143120
01 CAGI 0000143100 0000143101 0000230003 0000143103 0000143102 0000380000 0000230009 0000143120
01 CAGR 0000143100 0000143101 0000230003 0000143103 0000143102 0000380000 0000230009 0000143120
01 CAPE 0000143100 0000143101 0000230003 0000143103 0000143102 0000380000 0000230009 0000143120
01 CEIV 0000143100 0000143101 0000230003 0000143103 0000143102 0000380000 0000230009 0000143120
01 DIEX 0000143100 0000143101 0000230003 0000143103 0000143102 0000380000 0000230009 0000143120
01 DLFC 0000230200 0000230200 0000230003 0000143103 0000143102 0000380000 0000230009 0000143120
01 EWPO 0000143100 0000143101 0000230003 0000143103 0000143102 0000380000 0000230009 0000143120
01 GRPO 0000143100 0000143101 0000230003 0000143103 0000143102 0000380000 0000230009 0000143120
01 GRTR 0000143100 0000143101 0000230003 0000143103 0000143102 0000380000 0000230009 0000143120
01 MRDY 0000143100 0000143101 0000230003 0000143103 0000143102 0000380000 0000230009 0000143120
01 MRRD 0000143100 0000143101 0000230003 0000143103 0000143102 0000380000 0000230009 0000143120
01 MRWO 0000143100 0000143101 0000230003 0000143103 0000143102 0000380000 0000230009 0000143120
01 OTHR 0000230200 0000143101 0000230003 0000143103 0000143102 0000230003 0000230009 0000143120
01 TR6C 0000143100 0000143101 0000230003 0000143103 0000143102 0000380000 0000230009 0000143120
01 UTLZ 0000230200 0000230200 0000230200 0000143103 0000143102 0000380000 0000230009 0000143120
03 57CM 0000143100 0000143101 0000230003 0000143103 0000143102 0000380000 0000230009 0000143120
03 57CM 01 0000143100 0000143101 0000230003 0000143103 0000143102 0000380000 0000230009 0000143120
03 57FC 0000143100 0000143101 0000230003 0000143103 0000143102 0000380000 0000230009 0000143120
03 57FC 01 0000143100 0000143101 0000230003 0000143103 0000143102 0000380000 0000230009 0000143120
03 57GR 0000143100 0000143101 0000230003 0000143103 0000143102 0000380000 0000230009 0000143120
03 57GR 01 0000143100 0000143101 0000230003 0000143103 0000143102 0000380000 0000230009 0000143120
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BED BED r OH sse Hld
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03 57NR 0000143100 0000143101 0000230003 0000143103 0000143102 0000380000 0000230009 0000143120
03 57NR 01 0000143100 0000143101 0000230003 0000143103 0000143102 0000380000 0000230009 0000143120
03 CAGI 0000143100 0000143101 0000230003 0000143103 0000143102 0000380000 0000230009 0000143120
2.4.4 Forms
The following settings have been maintained.
Going to the details screen accesses this transaction. A Business Place has to be defined for every TAN
No. In this activity Business Place has to be defined for TAN Number T-0063A(C) BGL. The address
details for the Business Place need to be maintained. While the TDS Circle and Range need to be
entered in the search field otherwise they will not be printed in the certificate.
2.4.5.2.3 Specify Which G/L Accounts to Post Withholding Tax and Losses to
2.4.5.3.2 Maintain Surcharge Tax Codes (Separate Tax Codes) (No Configuration)
No configuration done
2.4.5.3.3 Maintain Surcharge Rates (Surcharges Combined with Basic WH Tax Codes)
From current
No Year number To number number Ext
1 9999 1000000000 1999999999 1000000000
2.7 Reports
No configuration done.