Definition of Internal Control

Definition of Internal Control:-

Systematic measures (Such are reviews, checks and Balance methods, and procedure) instituted by an organization to

(1)  Conduct its business in an orderly and efficient manner.

(2)  Safe Guard its assets and resources.

(3)  Deter and Detect errors, fraud and theft.

(4)  Ensure accuracy and completeness of its accounting data.

(5)  Produce reliable and timely financial and management information and,

(6)  Ensure adherence to its policies and plans.

Types of Internal Control:

Yes, generally speaking there are two types: preventive and detective controls. Both types of controls are essential to an effective internal control system. From a quality standpoint, preventive controls are essential because they are proactive and emphasize quality. However, detective controls play a critical role by providing evidence that the preventive controls are functioning as intended.

Preventive Controls are designed to discourage errors or irregularities from occurring. They are proactive controls that help to ensure departmental objectives are being met. Examples of preventive controls are:

Ø  Segregation of Duties: Duties are segregated among different people to
reduce the risk of error or inappropriate action. Normally, responsibilities for authorizing transactions (approval), recording transactions (accounting) and handling the related asset (custody) are divided.

Ø  Approvals, Authorizations, and Verifications: Management authorizes employees to perform certain activities and to execute certain transactions within limited parameters. In addition, management specifies those activities or transactions that need supervisory approval before they are performed or executed by employees. A supervisor’s approval (manual or electronic) implies that he or she has verified and validated that the activity or transaction conforms to established policies and procedures.

Ø  Security of Assets (Preventive and Detective): Access to equipment, inventories, securities, cash and other assets is restricted; assets are periodically counted and compared to amounts shown on control records.

Ø Detective Controls are designed to find errors or irregularities after they have occurred. Examples of detective controls are:

Ø  Reviews of Performance: Management compares information about current performance to budgets, forecasts, prior periods, or other benchmarks to measure the extent to which goals and objectives are being achieved and to identify unexpected results or unusual conditions that require follow-up.

Ø  Reconciliations: An employee relates different sets of data to one another, identifies and investigates differences, and takes corrective action, when necessary.

Ø  Physical Inventories

Ø  Audits

SAP FICO Module Training Tutorials

SAP FICO Module Training Tutorials | SAP FI

SAP FICO Stands for FI (Financial Accounting) and CO (Controlling). SAP FICO is the important module of ERP and both FI and CO modules stores the financial transactions data. 

SAP FICO training materials teaches you in a easy method with screen shots step by step. Tutorials is designed for SAP beginners and SAP professionals so that you can configure and implement SAP FICO step by step.

Check below SAP FICO module syllabus and select each topic one by one for better learning .

SAP FI 

SAP FI – Organization Structure

1. Define Company
2. Define Company Code
3. Assign Company Code to Company
4. Define Business Area
5. Define Functional Area
6. Define Credit Control
7. Assign Company Code to Credit Control

SAP FI – Financial Accounting Global Settings

1. Maintain Fiscal Year Variant
2. Assign Company Code to Fiscal Year Variant
3. Define variants for Open Posting Periods
4. Open and Close Posting Periods
5. Assign Posting Period Variant to Company Code
6. Define Field Status Variants
7. Assign Company Code to Field Status Variants
8. Define Posting Keys
9. Define Document Types
10. Define Document Number Ranges
11. Define Tolerance Group for Employees
12. Define Tolerance Group for G/L Accounts
13. Assign Users to Tolerance Group
14. Global Parameters for Company Code

SAP FI – General Ledger

1. Define Chart of Accounts
2. Assign Company Code to Chart of Accounts
3. Define Account Groups
4. Define Retained Earnings Account
5. Create General Ledger Account 

 SAP FI- Accounts Payable :-

1. Create Vendor Account Groups
2. Create Number Ranges for Vendor Accounts
3. Assign the number ranges to Vendor account groups
4. Create Sundry Creditors Account
5. Define Tolerances Group for Vendors
6. Vendor Payment Terms
7. Create Vendor Master Data
8. Automatic Payment Program

SAP FI- Accounts Receivable :-

9. Create Customer Account Groups
10. Create Number Ranges for Customer Accounts
11. Assign Number Ranges to Customer Account groups 
12. Create Sundry Debtors
13. Define Tolerances Group for Customer
14. Customer Payment Terms
15. Create Customer Master Record
16. Dunning procedure configuration

Bank Accounting

1. Create bank key
2. Define House bank
3. Global Settings for Electronic Bank Statement

SAP FI – Asset Accounting

16. Chart of Depreciation
17. Assign Chart of Depreciation to Company Code
18. Specify Account Determination
19. Create Screen Layout Rules
20. Maintain asset number ranges
21. Define Asset Classes
22. Determine Depreciation area in the Asset Class
23. Assignment of General Ledger Accounts
24. Define Screen Layout for Asset master data
25. Define Screen Layout for Asset Depreciation Areas
26. Define Depreciation Methods
27. Maintain Depreciation key
28. Depreciation Run
29. Create Asset Master

SAP FI – Organization Structure

How to Create a Company in SAP | Define Company in SAP FICO

The following tutorial guides you how to define company in SAP step by step with screen shots. Let us discuss briefly about company.

Define Company in SAP

About Company in SAP:- Company is theorganizational unit for which individual financial statements can be drawn according to the relevant commercial law. A company can comprise of one or more company codes. A Company has local currencies in which its transactions are recorded. All company codes within a company must use the same transaction Chart of accounts and the same Fiscal Year. Creation of company in sap is optional.

Path to Define Company in SAP :-  

SAP IMG Path: – SPRO –> Implementation Guide for R/3 Customizing (IMG)  –> Enterprise Structure –> Definition –> Financial Accounting  –> Define Company

Transaction code to “Define Company in SAP” :- OX15

Steps for creation of Company: –  

Step 1 :-  Enter Transaction Code SPRO in the commend field and press enter on the Keyboard

Step 2 :- Next Customizing execute project screen select SAP Reference IMG

Step 3 :- After Selecting SAP Reference IMG, a new screen IMG Path will be displayed. SelectDefine company execute icon for creating a company

Next Screen will be displayed after selecting the define company execute icon

Step 4:- Now Select New entries icon and enter the company details

The following details are to be entered for creating a new company

1. Enter 6 character alphanumeric code key that represents the group of company
2. Enter name of your company
3. In the Detailed information update the address – Street name, PO Box#, Postal code, City.
4. Enter Country Code of the company
5. Enter language key
6. Enter local currency for the company (also known as Company code currency)
7. Click on Save icon or CTRL+S after updating the required information

Thus new Company ADARSH is created in SAP.

How to Create Company Code in SAP | Define Company Code in FICO

The following tutorial guides you how to define company code in SAP FI step by step with screen shots. After configuring company, next step is to configure the company code. Let us discuss briefly about company code. 

Define Company Code

About Company Code :- Company Code in SAP is the smallest organizational unit of Financial Accounting for which you draw individual financial statements like Balance Sheet and Profit & Loss Account for purpose of external reporting. The Creation of company code in sap is mandatory

PATH :-  IMG Reference –> Enterprise Structure –> Definition –> Financial Accounting –> Edit, Copy, Delete Company Code

Transaction code to Define company Code  :- OX02

Steps to Define Company Code: -

Step 1 :-  Enter Transaction Code SPRO in the commend field and press enter

Steps 2 :-  In customizing execute project screen select SAP Refe

rence IMG

Step

3 :- In next screen select Edit, Copy, Delete check Company Code

Step 4 :- The below screen displays after selecting Edit, Copy, Delete Company Code ( Define Company Code )

we can create company code by selecting above two options. By selecting first option copy, Delete, company code all the configuration and tables get copied automatically along with assignments.

Here we are creating company code manually configure all the assignments by selecting second option Edit Company Code Data . Double click on Edit Company Code

Data

Step 5

:- Click on New Entriesand update the following details

1. Update new Company code key AD06

2. Give the company name Adarsh Technologies for identifying the company code key

3. In Additional Data update the details of  City, Country, local Currency of company, Language.

Click on Address and Update the following fields

After updating Address enter Click on Save icon Thus the company code AD06 is created in SAP

How to Assign Company Code to Company in SAP

Assign Company Code to Company

Menu Path :-

SPRO –> IMG Reference –> Enterprise Structure –> Assignment –> Financial Accounting –>Assign Company Code To Company

Transaction Code :- OX16

The following are the steps to Assign the Company Code to Company in SAP F

ICO

Step

1 :- Enter the T-Code SPRO in the commend field

Step 2 :- Click SAP Reference IMG

Step 3 :- Follow the Path as per below screen shot

Step 4 :- Click Position

Update company code for which you wants to assign and Enter

Step 5 :- Update Company ID in Company field and click on save icon

Thus company code AD06 was assigned to Company ADARSH

Define Business Area in SAP FICO | How to Create Business Area in SAP

Define Business Area in SAP

Definition of  Business area :- Business area is a separate area of operations or responsibilities of organizational units of financial accounting that is used for internal and external reporting . Different divisions of each business with in a legal entity are created as Business areas for reporting of each operational areas. So Financial statements can be created for each business area and this financial statements can be used for internal reporting purpose.

 Business areas are not assigned to any company codes.

Transaction Code for Creation of Business Area in SAP :- OX03

Steps for the Creation of New Business Areas in SAP :-

Step 1 :- Enter transaction code SPRO in the commend field

Step 2 :- Select SAP Reference IMG ( Shortcut key F5 )

Step 3 :- After selecting SAP Reference IMG, follow the below structure to configure the Business areas

Step 4 :- After Selecting Define Business Area, Select new entries to configure new Business areas

Step 5 :- Enter the 4 digit code in the business area field and enter the name of business areas in the description field and save the settings.

Thus Business Areas ADKA, ADHY, ADMU are configured in SAP FICO . 

Configuration of Functional Area in SAP FICO | Define Functional Area

Functional Area in SAP

Definition of  Functional Area in SAP:- Functional Area is a organisational unit in accounting that classifies the expenses of an organisation by functions.

Uses of  Functional Area :-

TheFunctional area in SAP is use to create P&L  A/C in Financial Accounting using cost of sales accounting and used to analyse the cost of sales accounting

Examples of Functional Area are :-

• Administration
• sales and distribution
• Manufacture
• Production
• Research and development

Steps for the Creation of Functional Area in SAP

Transaction code :-  OKBD

SAP Menu Path :- SPRO > SAP Reference IMG > Financial Accounting > Financial Accounting Global Settings > Company Code > Cost of Sales Accounting >A ctivate  Cost of Sales Accounting for Preparati

o

n

S

tep 1 :-  Enter T-Code OKBD in the commend filed

Step 2 :- In the Next screen Click  New Entries

Step 3 :- Enter four digits Functional area code in the Functional Area column and update names of the Functional Areas

Thus Functional Areas ADPR, ADSO are created in SAP

Define Credit Control Area for Customer in SAP

The credit control area is an organizational unit that specifies and checks a credit limit for customers. Credit control area can includes one or more company codes 

Steps for Define Credit Control Area :-

Transaction Code to Define Credit Control Area – OB45

IMG Menu Path :-

SPRO –> Implementation Guide –> Enterprise Structure –> Definition –> Financial Accounting –> Define Credit Control Area

Step 1 :- Enter T-Code SPRO in the Command Field and press enter

Step 2 :- Click SAP Reference IMG

Step 3 :- Follow the IMG Menu path

Step 4 :- In next screen click on new entries

Step 5 :- Update the required data

1. Credit Control area :- Enter four digits credit control area code

2. Currency :- Update currency of the credit control area

3. Credit limit :- Update credit limit amount for the customers

Step 6 :- Click on save icon to save the new credit control area

Thus credit control area in SAP was successfully configured

Assign Company Code to Credit Control Area in SAP

Steps for Assign company code to credit control area

IMG Menu Path :-

SPRO > Implementation Guide >  Enterprise Structure  > Assignment > Financial Accounting > Assign company code to credit Control Area

Step 1 :- Enter T-Code SPRO in the Command field and press enter

Step 2 :- Click on SAP Reference IMG ( short cut key F5 )

Step 3 :- Follow the menu path for Assigning Company Code to Credit Control Area

Step 4 :- In next screen click on Position icon and update the company code and press enter

Step 5 :-  In next screen, update the credit control code in the CCAr field and 

Step 6 :- After updating credit control code click on save icon

 Thus company code successfully assigned to credit control area.

Assign Company Code to Credit Control Area in SAP

Steps for Assign company code to credit control area

IMG Menu Path :-

SPRO > Implementation Guide >  Enterprise Structure  > Assignment > Financial Accounting > Assign company code to credit Control Area

Step 1 :- Enter T-Code SPRO in the Command field and press enter

Step 2 :- Click on SAP Reference IMG ( short cut key F5 )

Step 3 :- Follow the menu path for Assigning Company Code to Credit Control Area

Step 4 :- In next screen click on Position icon and update the company code and press enter

Step 5 :-  In next screen, update the credit control code in the CCAr field and 

Step 6 :- After updating credit control code click on save icon

 Thus company code successfully assigned to credit control area.

SAP FI – Financial Accounting Global Settings

Create Fiscal Year Variant in sap | Fiscal year Accounting Period

Fiscal Year Variant in sap

Definition Fiscal year :-
A fiscal year is divided in to number of posting periods and each posting period in a accounting period is defined by a start date and end date

Fiscal year in SAP can be defined as year dependent or Year Independent

Year independent –  Same number and dates for the periods every year
year dependent – Periods can be different from year to year

Define Fiscal year Variant :- Fiscal year variant is used to define the fiscal year
A Fiscal year variant contains the 12 normal posting periods and 4 special periods. We can define maximum 16 posting periods for each year.  Special periods are used for Year end activities

Steps for configure the Fiscal year variant :-

Step 1 :-  

       Enter SPRO Transaction Code in the SAP Commend field and press enter

Step 2 :-

 In the next screen select SAP Reference Img

Step 3 :-

    In the next screen Display Img , follow the Menu path

SAP Reference IMG –> Financial Accounting –> Global Settings –> Fiscal Year –>Maintain Fiscal Year Variant

Step 4 :-

In the next screen select New Entries to create Fiscal year

Step 5 :-

    New entries to Create fiscal year variant screen, update the following information.

1. In the field Fiscal year variant FV enter the two digits unique code

2. In the description field update the name of Fiscal year Variant

3. Select the year-Dependent option if the Periods  are different from year to year

4. Select Calendar yr option  if same number and dates for the periods of every year

5. Update 12 in the Number of Posting periods field

6. Update 4 in the No. of Special Periods Field.

After updating the required data and click on save icon

Step 6 :-

    Block Fiscal Year Variant AD and Double Click on Periods folder

Step 7 :-

          Select New Entries Button

Step 8 :-  Maintain the Periods for the Fiscal Year

First Coloumn - Month

Second Coumn - Day

Third Column - Period

Fourth column - Year Shift

After Maintain Fiscal Year Variant Periods, Click and Save icon.

How to Assign Company Code to Fiscal Year Variant

This Tutorial Guides you How to Assign Company Code to Fiscal Year Variant

Single Fiscal Year Variant can be assigned for multiple company codes. The link between Fiscal Year Variant and Company Code is established through the assigning Company Code to Fiscal Year Variant.

Path for Assign Company Code to Fiscal Year Variant

 SPRO > Implementation Guide for R/3 Customizing (IMG)  –> Finance Accounting –> Finance Accounting Global Settings –> Fiscal Year –> Assign Company Code to Fiscal Year variant

Transaction Code for Assign Company Code to Fiscal Year Variant

T Code > OB37

 Assign Company Code to Fiscal Year Variant Configuration Steps :-

Step 1 :-Type SPRO in the Command Field of the SAP Easy Access Menu Screen and press enter key on the Keyboard.

Step 2 :-  Click SAP Reference IMG Icon, 

Step 3 :- In next screen follow the Path Assign Company Code to Fiscal Year Variant 

Step 4 :-  Click Position  

Step 5 :-  After selecting position, update the company code and press enter

Step 6 :- In next screen Update fiscal year variant field for the required Company Code  and Press enter on the keyboard. 

Step 7 :- Click the Save Icon located at the upper left corner of the screen to save the updated data.

Thus Company Code AD06 is successfully assigned to Fiscal year Variant AD .

How to Create Posting Period Variants | SAP PPV

This SAP Fico Tutorials guides you how to Create posting period Variants

Posting Period Variant  is accountable for the opening and closing of periods in a Fiscal Year for postings to take place. The Posting Period Variants ( PPV ) in SAP  is used to control which accounting period is open for postings and ensuring  that closed period remain balanced and reconciled. we can assign posting period variants to one or more company codes.

Posting Periods are opened and closed for all company codes in SAP by the PPV.

 Steps to Create Posting period variants in SAP :-

Step 1 :-Type SPRO in the Command Field of the SAP Easy Access Menu Screen and press Enter key on the Keyboard.

Step 2 :-  Click SAP Reference IMG Icon

Step 3 :- In next screen follow the menu path to create posting period variant

IMG Menu Path :- SPRO > Implementation Guide for R/3 Customizing (IMG)  –> Finance Accounting –> Finance Accounting Global Settings –> Documents –> Posting Periods –> Define variants for open p osting periods

Step 4 :- The define posting period variants screen is displayed, Click on new entries to create SAP PPV

Step 5:- Enter four digit code in the Variant field, update variant name in the name field. Here we created posting period Variant ADO6

Step 6 :- After updating posting period variant and name fields click on save icon to save the data.

Thus Posting Period Variant AD06 is defined ..

Define Variant for Open and Close Posting Periods | SAP OB52

This FICO Tutorials Guides you how to Define Variant for Open and Close Posting Periods

Purpose of Open and Close Posting periods Configuration:-

The posting periods can be maintained as per account type and the year which is to be open & which is to closed. The Posting Period Variant is used to control which accounting period is to be open for posting and ensuring that closed periods are remain balanced and reconciled

Path for Define open and close posting periods:- 

 Implementation Guide for R/3 Customizing (IMG)  –> Finance Accounting –> Finance Accounting Global Settings –> Documents –> Posting Period –> open and close posting periods

Transaction code open and close posting periods :- OB52

Step 1 :-Type SPRO in the Command Field of the SAP Easy Access Menu Screen and press Enter key on the Keyboard

Step 2 :-  Click SAP Reference IMG 

Step 3 :-  In next screen follow the menu path to Define Variant for open and close posting periods

Step 4 :- Click on New entries to Define Variant for Open and Close Posting Periods

 Step 6 :- In Next screen update the required data as described below

1.Variant:- Enter four digits Posting Period variant Code

2. A:- Select Account Type ( A )
        + = Valid for all Account Types (masking) 
                  A = Assets
                  D = Customers (A/R)
                  K = Vendors (A/P)
                  M = Materials
                  S = General Ledger Accounts. 
3.From Account:- Keep Blank

4.To Account:- Update Account

5. From Period 1:- Enter Starting Period

6.Year:- Enter Year

7.To Period:- Enter Ending Period

8.Year:-  Enter Year

9.From Period 2:- Enter First Special Period

10.Year:- Enter Year

11.To Period:- Enter Special Period

12.Year:- Enter Year

13.Authorization group ( AuGr ):- You can assign authorization groups in which some periods can only be opened for particular users

14. Click on save icon to save the defined open and close posting periods

Thus Open and Close Posting Periods are configured in SAP.

Assign Posting Period Variant to Company Code

This SAP Fico tutorials Guide you how to Assign Posting Period Variant to Company Cod

e 

I

n this activity you assign the same Posting Variant Key to the company codes .

Transaction code for Assign Posting period Variant to Company Code :- OBBP

IMG Menu Path :-

SPRO >  Implementation Guide for R/3 Customizing (IMG)  –> Finance Accounting –> Finance Accounting Global Settings –> Documents –> Posting Period –> Assign Variants to Company code

Steps to Assign Posting Period Variant to Company Code

Step 1 :- Enter transaction code SPRO in the SAP Command field and press enter

Step 2 :- Select SAP Reference IMG 

Step 3 :-  In next screen follow the path

Step 4 :- Click on Position

Step 5 :- After clicks on position enter the company code and press enter on key board

Step 6 :- In next screen update Posting Period variant Code AD06 in the Variant field

Step 7:- After updating Posting period variant Click on Save icon.

Thus Posting Period Variant is Assigned to Company Code .

Define Field Status Variant in SAP | Field Status Group

SAP Fico Tutorials guides you how to define field status variant in sap

The field status group specifies which fields are ready for input, which are required entry fields, and which are hidden when entering documents.

Description and Configuration values of Field Status Group

FStGroup	Text
G001	General (with text, assignment)
G003	Material consumption accounts
G004	Cost accounts
G005	Bank accounts (obligatory value date)
G006	Material accounts
G007	Asset accts (w/o accumulated depreciation)
G008	Assets area clearing accounts
G009	Bank accounts (obligatory due date)
G011	Clearing accounts (with settlement per.)
G012	Receivables/payables clearing
G013	General (obligatory text)
G014	MM adjustment accounts
G017	Freight/customs provisions/clearing (MM)
G018	Scrapping (MM)
G019	Other Receivables/Payables
G023	Plant maintenance accounts
G025	Inventory adjustment accounts
G026	Accounts for down payments made
G029	Revenue accounts
G030	Change in stock accounts
G031	Accounts for down payments received
G032	Bank accounts (obligat. value/due dates)
G033	Cost accounts for external services
G036	Revenue accts (with cost center, PA)
G039	Accts for pmnts on acct made for assets
G040	Personnel clearing accounts
G041	Tax office clearing accounts
G045	Goods/invoice received clearing accounts
G049	Manufacturing costs accounts
G050	Central control clearing accounts
G052	Accounts for fixed asset retirement
G056	Amortization accounts
G059	Inventory accounting material stock acct
G062	Investment support accounts
G064	Other cost accounts (obligatory text)
G067	Reconciliation accounts
G068	Reconciliation accts (payables – Austria)
G069	Cost accounts (travel expenses)
G070	Clearing accounts (travel expenses)
G071	Reconciliation accts ( KIDNO /Foreign payment)

Steps to Define Field Status Variant

Step 1 :-

Enter T-Code SPRO in the Command Field of the SAP Easy Access Menu Screen and press Enter key on the Keyboard

 Step 2 :- In next screen click on Click SAP Reference IMG Icon

Step 3 :-

Implementation Guide for R/3 Customizing  –> Finance Accounting –> Finance Accounting Global Settings –> Documents –> Line Item –> Controls –> Define Field status variants

Step 4 :- In Next screen block 001 Field status variant

Step 5:- After selecting 0001 field status variant click on copy as icon ( short cut Key F6). In next screen update required new Field Status variant Code and Update Field status variant Name

Step 6 :- After updating Field Status variant and Field Status Name,  press Enter key on the Keyboard. Select copy all button

Step 7:- We get a message number of dependent entries copied as 41

Step 8:-  Enter and select save button or CTRL + S

  We successfully configured Field Status variant

Assign company code to field status variants SAP FICO

This SAP FICO Tutorial Guides you how to Assign company code to field status variants in SAP FICO

Transaction Code Assign company code to field status variants :- OBC5

IMG Menu Path :- Implementation Guide for R/3 Customizing (IMG) > Finance Accounting –> Finance Accounting Global Settings –> Documents –> Line Item –> Controls –>  Assign Company code to Field Status Variants

Steps for Assigning company code to field status variants :-

Step 1 :-

Enter T-Code SPRO in the Command Field of the SAP Easy Access Menu Screen and press Enter key on the Keyboard

Step 2 :- In next screen click on Click SAP Reference IMG Icon

Step 3 :- In next screen follow the menu path

Step 4 :- In next screen Click on position and update the company code and press enter

Step 5 :- In next screen update field statues variant in the Fld Stat.Var. field

Step 6 :-  After Assign company code to field status variants, Click on save icon to save the configuration settings

Thus Company code AD06 is successfully assigned to field status variants.

Define Posting Keys

Posting Keys :-  Posting key in SAP is a two digits numerical key that determines the type of transaction entered in a line item 

Posting Keys Determines :-

1. Account Types ( A, D, K, M, S )

2. Type of postings i.e Debit or Credit

Account Types in SAP :-

1. Assets

2. General Ledger

3. Customer

4. Vendor

5. Material

Account Type Customer posting keys :-

Posting Key	Description	Account Type Debit/Credit
1	Invoice	Customer Debit
2	Reverse credit memo	Customer Debit
3	Bank charges	Customer Debit
4	Other receivables	Customer Debit
5	Outgoing payment	Customer Debit
6	Payment difference	Customer Debit
7	Other clearing	Customer Debit
8	Payment clearing	Customer Debit
9	Special G/L debit	Customer Debit
11	Credit memo	Customer Credit
12	Reverse invoice	Customer Credit
13	Reverse charges	Customer Credit
14	Other payables	Customer Credit
15	Incoming payment	Customer Credit
16	Payment difference	Customer Credit
17	Other clearing	Customer Credit
18	Payment clearing	Customer Credit

Account Type General Ledger Posting Keys

Posting Key	Description	Account Type Debit/Credit
40	Debit entry	G/L Debit
50	Credit entry	G/L Credit
80	Stock initial entry	G/L Debit
81	Costs	G/L Debit
83	Price difference	G/L Debit
84	Consumption	G/L Debit
85	Change in stock	G/L Debit
86	GR/IR debit	G/L Debit
90	Stock initial entry	G/L Credit
91	Costs	G/L Credit
93	Price difference	G/L Credit
94	Consumption	G/L Credit
95	Change in stock	G/L Credit
96	GR/IR credit	G/L Credit

Account Type Asset Posting Keys

Posting Key Description  Debit/Credit 70 Debit Asset Debit 75 Credit Asset Credit

Account Type Material Posting Keys

Posting Key	Description	Account Type Debit/Credit
89	Stock inward movement	Material Debit
99	Stock outward movement	Material Credit

Account Type Vendor Posting Keys

Posting Key	Description	Account Type Debit/Credit
21	Credit memo	Vendor Debit
22	Reverse invoice	Vendor Debit
24	Other receivables	Vendor Debit
25	Outgoing payment	Vendor Debit
26	Payment difference	Vendor Debit
27	Clearing	Vendor Debit
28	Payment clearing	Vendor Debit
29	Special G/L debit	Vendor Debit
31	Invoice	Vendor Credit
32	Reverse credit memo	Vendor Credit
34	Other payables	Vendor Credit
35	Incoming paymen		t	V		endor Credit
36	Payment difference	Vendor Credit
37	Other clearing	Vendor Credit
38	Payment clearing	Vendor Credit
39	Special G/L credit	Vendor Credit

Posting key Configuration Steps :- Transaction Code – OB41

Step 1 :- Enter T-Code SPRO in the Command Field and press enter

Step 2 :- Click SAP Reference IMG

Step 3 :- Follow the IMG Menu path

SPRO > Implementation Guide –> Finance Accounting –> Finance Accounting Global Settings –> Documents –> Line Item –> Controls –>   Define Posting Keys

 Step 4 :- Click on Create Icon

Step 5:- Update two digits numerical key code in the Posting key field and update name of the posting key in the name of the posting key field

Step 6 :- Update the following data

1. Debit/Credit indicator :- Select the debit or credit 

2. Account Type :- Select appropriate account type 

3. Other attributes :- Select appropriate attribute i.e Sales related or Special G/L

4. Reversal Posting Key :- Update the reversal posting key

Step 7 :- click on save icon

Posting key successfully configured in SAP

Posting Key	Name	Debit/Credit
70	Debit asset	Asset Debit
75	Credit asset	Credit