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 P&L account, by specifying a P&L statement account type in the chart of accounts area of each P&L account in SAP. We must have a minimum of one retained earnings account. Define retained earnings account is prerequisite step to open the general ledger accounts later. […]
An account group is segregating or grouping similar accounts into a single group. Each account group in SAP is assigned to a chart of accounts, so you can only use the account group if the controlling areas use the same chart of accounts. If we want to check current asset balances or prepare P&L accounts, […]
The definition of business area is an independent organizational unit that has its own area of responsibility within the organization. Which can prepare financial statements for internal & external reporting. The classification of the business areas is either geographical or product-wise as per the requirement of the company. We can define any number of business […]
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.
The tolerance groups can be defined as predefined limits in amounts or percentages by which receivables may be underpaid or overpaid.
SAP ERP is an Enterprise Resource Planning software developed by the German company SAP SE. SAP ERP incorporates the key business functions of an organization.