A fiscal year variant determines the posting periods to be used by your clients company. SAP allows maximum of 16 posting periods each fiscal year. The 16 months periods normally comprise 12 regular posting periods and 4 special posting periods which can be used for such things as posting audit or tax adjustments to a closed fiscal year.

We have to assign a retained earning account for each

An account group is segregating or grouping similar accounts into

The definition of business area is an independent organizational unit

The assignment of company code to the chart of accounts (COA) is the link between company code and chart of accounts it is established through the assignment of company code to chart of accounts in SAP.

A chart of accounts (COA) is a financial organizational tool that provides a complete listing of every account in an accounting system. An account is a unique record for each type of asset, liability, equity, revenue, and expense

Tolerance group for employees is to restrict/control the users for posting the documents. Here we can give user wise maximum limit for tolerance groups.

General ledger account tolerance is mandatory in SAP. Which applicable in receipts and payments. Tolerance means the payment difference. It can be “Amount Tolerance” or “Percentage Tolerance”. It can be debit or credit.