SAP Financial Accounting

Basic Settings - Fiscal Year Fiscal Year: Fiscal year is the company's calendar year for which it regularly creates the financial statements and checks inventories. For example: In India, fiscal year starts from April to March. In USA, fiscal year starts from October to September. In Germany, fiscal year starts from January to December. So, fiscal year may be same as calendar year or may not be same as calendar year.  In SAP, fiscal year is defined as Fiscal Year Variant and assigned to a Company Code. Posting Periods: A Fiscal Year is divided into 12 posting periods. In addition to posting periods, you can also define special periods for year end closing. The posting period is determined from the posting date. Special Periods: Special periods correspond to periods which subdivide the year-end closing period for adjustments. For example:  For Germany, the fiscal year starts from January to December. So, for any year end adjustments, the period 12 i

Organization Unit - Business Area Organizational unit of external accounting that corresponds to a specific business segment or area of responsibility in a company. Movements in value entered in Financial Accounting are assigned to business areas. Financial statements can be created for business areas for  internal purposes  . The definition of the business area  organizational unit is  optional  . If you have defined business areas, the transaction figures for the G/L accounts are managed separately for internal evaluation purposes. You can therefore create internal financial statements for business areas. To define business areas, choose the following in Customizing Enterprise Structure -> Definition -> Financial Accounting -> Define Business Area Transaction Code: OX03 Technical Information: Below is the view which gets updated when Business area is defined and saved. View - V_TGSB This view contains tables TGSB and TGSBT as shown

Organization Unit - Company & Company Code Organization Unit - Company: The smallest organizational unit for which individual financial statements are created according to the relevant legal requirements.  A company can include one or more company codes. Note:  All of the company codes within a company must use the same chart of accounts and fiscal year. However, each company code can have a different local currency. Also, y ou must assign your companies to your company codes. To define a company, choose the following in Customizing path in SPRO. ( Enterprise Structure ->  Definition ->  Financial Accounting ->  Define Company ) or short transaction code - OX15 ( last four characters of the text under 'Additional information' column in SPRO as shown below ). The definition of the Company  organizational unit is  optional. For example, the text for 'Define Company' in SPRO is 'SIMG_CFMENUSAPCOX15'. So last four characters are

Organizational Unit - Client The client is the highest level in the SAP System hierarchy.  Specifications that you make, or data that you enter at this level are valid for all company codes and for all other organizational structures. You therefore only need to make these specifications, or enter this data once. This ensures that the data is consistent. The definition of the organizational unit client is mandatory/obligatory. Table for client is T000 where all client related information is stored.

Organizational Units Organizational units  are used to structure business functions and for reporting.  The organizational units of financial accounting  are used for external reporting purposes, that is, they fulfil requirements that your business is subject to from external parties, for example, legal regulations.   Basic settings  in financial accounting  are Customizing settings that you have to make in order to be able to carry out processes in financial accounting. Below are the organizational units in SAP FI. Organizational unit Definition Client Obligatory Company Optional Company code Obligatory Business area Optional Basic setting Chart of accounts Obligatory Fiscal year Obligatory Currencies Obligatory