Localization Guide

8/27/2002

English

SAP AG Neurottstr. 16 69190 Walldorf Germany

Vertical Solutions Development Kit

© SAP AG English - 8/27/2002 Page 2

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Contents

VERTICAL SOLUTIONS DEVELOPMENT KIT: LOCALIZATION GUIDE ................................................. 8

1 COUNTRY-INDEPENDENT LOCALIZATION GUIDE ......................................................................................... 8 1.1 How to Set Up Localized Solutions................................................................................................. 8

1.1.1 System Environment ................................................................................................................ 8 1.1.1.1 Language Import and Code Page ..................................................................................... 9 1.1.1.2 Comparison Client Without Test Data ............................................................................... 9 1.1.1.3 Comparison Client with Test Data..................................................................................... 9 1.1.1.4 Development Client ........................................................................................................... 9 1.1.1.5 Test Client........................................................................................................................ 10 1.1.1.6 Client for the Country Installer Program .......................................................................... 10

1.1.2 Country Installer Program ...................................................................................................... 10 1.1.2.1 Use with Business Configuration Sets ............................................................................ 10 1.1.2.2 Direct Use in Development Client.................................................................................... 11

1.1.3 Creation of a New Company Code Using the Country Installer............................................. 12 1.1.3.1 Notes on the Use of the Country Installer Program ........................................................ 12 1.1.3.2 Organizational Requirements .......................................................................................... 12 1.1.3.3 Copying Company Code 0001 to Target Company Code............................................... 13 1.1.3.4 Maintaining Company Codes .......................................................................................... 13 1.1.3.5 Removing Assignments to Company Codes no Longer Needed.................................... 14 1.1.3.6 Maintaining Address and Currencies .............................................................................. 15 1.1.3.7 Integrating the New Company Code into the Enterprise Structure ................................. 17 1.1.3.8 Deleting G/L Accounts..................................................................................................... 19 1.1.3.9 Deleting Company Codes that are not Used................................................................... 19 1.1.3.10 Copying Document Number Ranges to New Company Code ...................................... 20

1.1.4 Use of Standard SAP Chart of Accounts ............................................................................... 20 1.1.4.1 Maintaining Cost Elements in Controlling Area ............................................................... 21 1.1.4.2 Changes in the Controlling Area...................................................................................... 21

1.1.4.2.1 Changing Cost Elements in Activity Types ............................................................... 22 1.1.4.2.2 Changing Cost Elements in Overhead Structures.................................................... 22 1.1.4.2.3 Changing Cost Elements in Distribution Cycles ....................................................... 23 1.1.4.2.4 Changing Cost Elements in Assessment Cycles...................................................... 24 1.1.4.2.5 Changing Cost Elements in Indirect Activity Allocation ............................................ 24 1.1.4.2.6 Changing Cost Elements in Indirect Costing Sheets................................................ 25 1.1.4.2.7 Changing Cost Elements in Settlement Rule of Internal Orders .............................. 26

1.1.4.3 Maintaining Revenue Account Determination ................................................................. 26 1.1.4.4 Maintaining Materials Management Account Determination........................................... 27

1.1.5 Currencies .............................................................................................................................. 27 1.1.5.1 Maintaining Client Group Currency ................................................................................. 27 1.1.5.2 Maintaining Currencies in Organizational Data ............................................................... 28

1.1.6 Other ...................................................................................................................................... 29 1.1.6.1 Maintaining Field Status Groups ..................................................................................... 30 1.1.6.2 Language Import (Notes)................................................................................................. 30

1.1.6.2.1 Required Notes ......................................................................................................... 30 1.1.6.2.2 Recommended Notes ............................................................................................... 31

1.2 How to Add a New Chart of Accounts .......................................................................................... 32 1.2.1 Creating New Chart of Accounts............................................................................................ 32 1.2.2 Adding Account Groups ......................................................................................................... 33 1.2.3 Deleting Delivered Accounts in the Company Code .............................................................. 33 1.2.4 Assigning Chart of Accounts to Company Code and Controlling Area.................................. 34 1.2.5 Maintaining Accounts in Chart of Accounts ........................................................................... 35 1.2.6 Maintaining Controlling Area .................................................................................................. 35

1.2.6.1 Changing Cost Elements in Controlling Area .................................................................. 35 1.2.6.2 Changing Cost Elements in Activity Types...................................................................... 36 1.2.6.3 Changing Cost Elements in Overhead Structures........................................................... 37 1.2.6.4 Changing Cost Elements in Distribution Cycles .............................................................. 38 1.2.6.5 Changing Cost Elements in Assessment Cycles ............................................................ 38 1.2.6.6 Changing Cost Elements in Indirect Activity Allocation................................................... 39 1.2.6.7 Changing Cost Elements in Indirect Costing Sheets ...................................................... 40



1.2.6.8 Changing Cost Elements in Settlement Rule of Internal Orders ..................................... 40 1.2.7 Automatic Account Determination (Financial Accounting) ..................................................... 41

1.2.7.1 Taxes ............................................................................................................................... 41 1.2.7.2 Cash Discounts, Exchange Rate Differences and Other Differences............................. 41 1.2.7.3 Down Payments (Accounts Receivable / Accounts Payable) ......................................... 42 1.2.7.4 Special G/L Transactions ................................................................................................ 42 1.2.7.5 Payment Program (Automatic Payments) ....................................................................... 42 1.2.7.6 Period-End Closing.......................................................................................................... 43 1.2.7.7 Automatic Postings from Other Applications ................................................................... 43

1.2.8 Automatic Account Determination (Asset Accounting) .......................................................... 43 1.2.9 Automatic Account Determination (Materials Management) ................................................. 44 1.2.10 Automatic Account Determination (Sales and Distribution) ................................................. 44 1.2.11 Defining Financial Statements ............................................................................................. 45

2 COUNTRY-DEPENDENT LOCALIZATION GUIDE.......................................................................................... 45 2.1 FR - Localization Guide France .................................................................................................... 45

2.1.1 Organizational Units and Currency ........................................................................................ 46 2.1.1.1 Maintaining Currency Settings......................................................................................... 46 2.1.1.2 Maintaining Company Code – Defining Global Parameters............................................ 47

2.1.2 Chart of Accounts................................................................................................................... 48 2.1.2.1 Maintaining Chart of Accounts List .................................................................................. 48 2.1.2.2 Defining Financial Statement Versions ........................................................................... 49

2.1.3 Sales Tax Calculation ............................................................................................................ 49 2.1.3.1 Assigning Country to Calculation Procedure................................................................... 49 2.1.3.2 Defining Tax Codes ......................................................................................................... 50 2.1.3.3 Assigning Company Code for Non-Taxable Transactions .............................................. 51

2.1.4 Sales Tax Reporting............................................................................................................... 52 2.1.4.1 Defining Automatic Tax Payable Transfer Posting.......................................................... 52

2.1.5 Financial Reporting – Legal Requirements............................................................................ 52 2.1.5.1 Specifying G/L Account for Balance Carried Forward..................................................... 52 2.1.5.2 Defining Adjustment Accounts for Investments............................................................... 53

2.1.6 Financial Reporting – Other Requirements............................................................................ 54 2.1.6.1 Defining Reasons for Reversal Posting........................................................................... 54

2.1.7 Payments ............................................................................................................................... 54 2.1.7.1 Defining Accounts for Exchange Rate Difference Postings ............................................ 54 2.1.7.2 Maintaining Terms of Payment........................................................................................ 55 2.1.7.3 Defining Accounts for Cash Discount Received.............................................................. 56 2.1.7.4 Defining Accounts for Bank Charges .............................................................................. 57 2.1.7.5 Defining Accounts for Overpayments / Underpayments ................................................. 58 2.1.7.6 Defining Accounts for Down Payments Received........................................................... 58 2.1.7.7 Defining Accounts for Down Payments Made ................................................................. 59 2.1.7.8 Specifying Bill of Exchange Posting ................................................................................ 60 2.1.7.9 Specifying Payment Methods .......................................................................................... 62

2.1.8 Correspondence – Dunning ................................................................................................... 64 2.1.8.1 Defining Dunning Procedure ........................................................................................... 65 2.1.8.2 Specifying Dunning Forms .............................................................................................. 65

2.1.9 Fixed Assets........................................................................................................................... 66 2.1.9.1 Checking Country-Specific Settings ................................................................................ 66 2.1.9.2 Assigning Chart of Depreciation to Company Code........................................................ 66

2.2 GB - Localization Guide United Kingdom ..................................................................................... 67 2.2.1 Organizational Units and Currency ........................................................................................ 67

2.2.1.1 Maintaining Currency Settings......................................................................................... 67 2.2.1.2 Company Code – Defining Global Parameters ............................................................... 69

2.2.2 Chart of Accounts................................................................................................................... 71 2.2.2.1 Maintaining Chart of Accounts List .................................................................................. 71 2.2.2.2 Cost of Sales Accounting ................................................................................................ 71 2.2.2.3 Defining Financial Statement Versions ........................................................................... 72

2.2.3 Value Added Tax.................................................................................................................... 73 2.2.3.1 Calculation – Defining Tax Codes ................................................................................... 74 2.2.3.2 Assigning Company Code for Non-Taxable Transactions .............................................. 74 2.2.3.3 VAT Number Validation ................................................................................................... 75 2.2.3.4 Foreign Currency Invoices and Domestic VAT ............................................................... 75 2.2.3.5 Defining Account for Exchange Rate Difference Posting................................................ 76



2.2.3.6 Value Added Tax Reporting ............................................................................................ 77 2.2.4 Withholding Tax...................................................................................................................... 78

2.2.4.1 Withholding Tax - Configuration ...................................................................................... 78 2.2.4.2 Extended Withholding Tax – Basic Settings.................................................................... 79 2.2.4.3 Extended Withholding Tax - Calculation ......................................................................... 79 2.2.4.4 Extended Withholding Tax – Company Code ................................................................. 80 2.2.4.5 Extended Withholding Tax - Postings ............................................................................. 80 2.2.4.6 Extended Withholding Tax – Vendor Master................................................................... 81 2.2.4.7 Withholding Tax Reporting .............................................................................................. 81

2.2.5 Financial Reporting – Legal Requirements............................................................................ 83 2.2.5.1 S16 TMA.......................................................................................................................... 83

2.2.6 Customer/Vendor Master Data .............................................................................................. 83 2.2.7 Payments ............................................................................................................................... 84

2.2.7.1 Configuration of Payment Methods ................................................................................. 84 2.2.7.2 Payment by Bank Transfer (BACS)................................................................................. 85 2.2.7.3 Building Society Accounts ............................................................................................... 88 2.2.7.4 Other Information on Report RFFOGB_T ....................................................................... 88 2.2.7.5 Direct Debits .................................................................................................................... 89 2.2.7.6 Payment by Cheque ........................................................................................................ 89 2.2.7.7 Cheque Numbering ......................................................................................................... 90 2.2.7.8 Prenumbered Cheques ................................................................................................... 90

2.2.8 Bank Reconciliation................................................................................................................ 91 2.2.9 Fixed Assets........................................................................................................................... 95

2.2.9.1 Checking Country-Specific Settings ................................................................................ 95 2.2.9.2 Specifying Chart of Depreciation ..................................................................................... 95 2.2.9.3 Assigning Chart of Depreciation to Company Code........................................................ 96 2.2.9.4 Sundry UK Asset Topics.................................................................................................. 96

2.2.9.4.1 Depreciation.............................................................................................................. 97 2.2.9.4.2 Revaluation ............................................................................................................... 97

2.2.10 Purchasing ........................................................................................................................... 97 2.2.11 Sales .................................................................................................................................... 97 2.2.12 Appendix .............................................................................................................................. 98

2.3 IT-Localization Guide Italy ............................................................................................................ 99 2.3.1 Organizational Units and Currency ........................................................................................ 99

2.3.1.1 Maintaining Currency Settings......................................................................................... 99 2.3.1.2 Maintaining Company Code .......................................................................................... 100

2.3.2 Chart of Accounts................................................................................................................. 100 2.3.2.1 Maintaining Directory of Charts of Accounts ................................................................. 101 2.3.2.2 Defining Financial Statement Versions ......................................................................... 101

2.3.3 Sales Tax Calculation .......................................................................................................... 102 2.3.3.1 Defining Non-Taxable Transactions .............................................................................. 102 2.3.3.2 Defining Tax License Number Check (Lettera di esenzione)....................................... 102 2.3.3.3 Defining Tax on Sales and Purchases - Tax Codes ..................................................... 103

2.3.4 Sales Tax Reporting............................................................................................................. 103 2.3.4.1 Monthly Reporting of Sales Tax .................................................................................... 103

2.3.5 Withholding Tax Calculation................................................................................................. 105 2.3.5.1 Activating Extended Withholding Tax............................................................................ 105

2.3.6 Withholding Tax Reporting................................................................................................... 105 2.3.6.1 Sending Vendor Letters and Withholding Tax............................................................... 105 2.3.6.2 Monthly and Yearly Reporting of Withholding Tax ........................................................ 106 2.3.6.3 Reporting Withholding Tax – Modello 770 .................................................................... 107

2.3.7 Financial Reporting – Legal Requirements.......................................................................... 108 2.3.7.1 Defining Fiscal Year Closing Procedure........................................................................ 109

2.3.8 Financial Reporting – Other Requirements.......................................................................... 109 2.3.8.1 Defining Document Journal ........................................................................................... 109

2.3.9 Maintaining Customer/Vendor Master Data......................................................................... 110 2.3.10 Payments ........................................................................................................................... 111

2.3.10.1 Specifying Bank Transfer Settings .............................................................................. 111 2.3.10.2 Specifying Bill of Exchange Posting ............................................................................ 112 2.3.10.3 Specifying Bill of Exchange Payment.......................................................................... 114

2.3.11 Fixed Assets....................................................................................................................... 115 2.3.11.1 Checking Country-Specific Settings ............................................................................ 115



2.3.11.2 Specifying Chart of Depreciation................................................................................. 115 2.3.11.3 Assigning Chart of Depreciation to Company Code................................................... 116 2.3.11.4 Asset Register ............................................................................................................. 116

2.3.12 Purchasing ......................................................................................................................... 117 2.3.12.1 Customizing Purchase Account .................................................................................. 118 2.3.12.2 XAB Number................................................................................................................ 119

2.3.13 Sales .................................................................................................................................. 120 2.3.13.1 Pricing Scheme ........................................................................................................... 121

2.3.14 Appendix ............................................................................................................................ 121 2.3.14.1 Tax Codes ................................................................................................................... 121

2.4 US – Localization Guide USA..................................................................................................... 122 2.4.1 Financial Accounting ............................................................................................................ 122

2.4.1.1 Chart of Accounts .......................................................................................................... 122 2.4.1.2 Cost of Sales Accounting .............................................................................................. 123 2.4.1.3 Tax on Sales/Purchases................................................................................................ 124

2.4.1.3.1 Jurisdiction Codes................................................................................................... 125 2.4.1.3.2 Tax Accounts Definition .......................................................................................... 125 2.4.1.3.3 Tax on Sales/Purchases......................................................................................... 125 2.4.1.3.4 External Tax Calculation ......................................................................................... 127

2.4.2 Connecting and Activating External Tax Software............................................................... 127 2.4.2.1 Activation in R/3............................................................................................................. 127 2.4.2.2 Connecting R/3 to Vertex .............................................................................................. 128

2.4.2.2.1 Defining Physical Destination ................................................................................. 128 2.4.2.2.2 Assigning Country to Calculation Procedure .......................................................... 128 2.4.2.2.3 Specifying Structure for Tax Jurisdiction Code....................................................... 128 2.4.2.2.4 Allocating Company Code to Non-Taxable Transactions....................................... 129 2.4.2.2.5 Creating Number Range for External Tax Document............................................. 129 2.4.2.2.6 Defining Logical Destination ................................................................................... 129 2.4.2.2.7 Activating External Tax Calculation ........................................................................ 130 2.4.2.2.8 Activating External Updating................................................................................... 130

2.4.3 Configuration in R/3 ............................................................................................................. 130 2.4.3.1 Creating Tax Code for External Tax Calculation ........................................................... 130 2.4.3.2 Updating Jurisdiction Codes in R/3 Addresses ............................................................. 131

2.4.3.2.1 Changing Jurisdiction in Company Code Address ................................................. 131 2.4.3.2.2 Changing Jurisdiction in Plant Address .................................................................. 132 2.4.3.2.3 Changing Jurisdiction in Cost Center Addresses ................................................... 132

2.4.3.3 Changing Jurisdiction in Master Data Address ............................................................. 132 2.4.4 Payment ............................................................................................................................... 132

2.4.4.1 Creating Payment Terms............................................................................................... 132 2.4.4.2 1099 Tax Reporting ....................................................................................................... 133

2.4.5 Electronic Bank Statement Reconciliation ........................................................................... 133 2.4.5.1 Configuration ................................................................................................................. 133 2.4.5.2 Make Global Settings for Electronic Bank Statement ................................................... 135

2.4.5.2.1 Creating Transaction Type ..................................................................................... 135 2.4.5.2.2 Assigning Banks to Transaction Types and Currency Classes.............................. 135 2.4.5.2.3 Creating Keys for Posting Rules............................................................................. 135 2.4.5.2.4 Defining External Transaction Codes ..................................................................... 136 2.4.5.2.5 Assigning External Transactions to Posting Rules ................................................. 137 2.4.5.2.6 Defining Posting Rules for Electronic Bank Statement........................................... 137 2.4.5.2.7 Account Symbols .................................................................................................... 138

2.4.5.3 Bank Statement Upload Program.................................................................................. 139 2.4.6 Lockbox Processing ............................................................................................................. 139

2.4.6.1 Overview........................................................................................................................ 139 2.4.6.2 Customer Master Data .................................................................................................. 140 2.4.6.3 General Ledger Accounts.............................................................................................. 140 2.4.6.4 Defining Lockboxes for House Banks ........................................................................... 141 2.4.6.5 Defining Posting Data.................................................................................................... 141 2.4.6.6 Defining Control Parameters ......................................................................................... 141 2.4.6.7 Worklist .......................................................................................................................... 142

2.4.7 Payment Program ................................................................................................................ 142 2.4.8 Bank Selection / Setting Up the Payment Program ............................................................. 143 2.4.9 Asset Management .............................................................................................................. 146



2.4.9.1 Asset Classes................................................................................................................ 146 2.4.9.2 Depreciation Areas ........................................................................................................ 147 2.4.9.3 Luxury Automobiles ....................................................................................................... 150

2.4.10 Materials Management....................................................................................................... 150 2.4.10.1 Units of Measure ......................................................................................................... 150 2.4.10.2 Defining Units of Measure Groups .............................................................................. 151 2.4.10.3 Vendors ....................................................................................................................... 151

2.4.10.3.1 Defining Account Groups and Field Selection ...................................................... 152 2.4.10.4 Tax Jurisdiction............................................................................................................ 157 2.4.10.5 GR-Based IV, Reversal of GR Despite the Invoice..................................................... 157 2.4.10.6 Purchase Requisition Releases .................................................................................. 158

2.4.10.6.1 Defining Document Types .................................................................................... 158 2.4.10.6.2 Creating Characteristics........................................................................................ 158 2.4.10.6.3 Creating a Class ................................................................................................... 158 2.4.10.6.4 Assigning the Classification to the Release Procedure ........................................ 159 2.4.10.6.5 Purchase Orders Releases................................................................................... 159 2.4.10.6.6 Creating Characteristics........................................................................................ 160 2.4.10.6.7 Creating a Class ................................................................................................... 160 2.4.10.6.8 Defining Release Procedure................................................................................. 160

2.4.10.7 Price Determination ..................................................................................................... 161 2.4.10.7.1 Defining Condition Types...................................................................................... 161 2.4.10.7.2 Defining Calculation Scheme................................................................................ 161

2.4.11 Sales and Distribution ........................................................................................................ 163 2.4.11.1 Shipping Information.................................................................................................... 163

2.4.11.1.1 Defining Incoterms................................................................................................ 163 2.4.11.1.2 Creating Incoterm Rates....................................................................................... 163

2.4.11.2 Communication Preferences ....................................................................................... 164 2.4.11.3 Prices and Taxes......................................................................................................... 164

2.4.11.3.1 Pricing: Pricing Control ......................................................................................... 164 2.4.11.4 Taxes ........................................................................................................................... 165

2.4.11.4.1 Creating SD Tax Conditions ................................................................................. 165 2.4.11.4.2 Credit Card Processing......................................................................................... 166

2.4.11.4.2.1 Maintaining Card Categories.......................................................................... 166 2.4.12 Appendix ............................................................................................................................ 166



Vertical Solutions Development Kit: Localization Guide Localization projects are supported by procedures and methods that can generally be used in all countries and are therefore country-independent. This guide provides you with further documentation and helpful information that you can use in your project as needed. The Localization Guide has the following sections:

• Chapter 1, Country-Independent Localization Guide. This section covers how to set up your vertical solution to address country-independent issues.

• Chapter 2, Country-Dependent Localization Guide. This sections has chapters for each of the major vertical solution markets, and details country-specific localization information.

Copyright © Copyright 2002 SAP AG. All rights reserved. Version 1.0

1 Country-Independent Localization Guide For information on this section, select the relevant items in the substructure.

1.1 How to Set Up Localized Solutions

Purpose Localization projects are supported by procedures and methods that can generally be used in all countries and are therefore country-independent. This Guide provides you with further documentation and helpful information that you can use in your project as needed.

This documentation does not include country-specific content. For country-specific content please refer to the respective country versions of the Localization Guides.

The guide is based on Best Practices for mySAP.com. It covers localization aspects of solutions based on Best Practices for mySAP.com.

1.1.1 System Environment Depending on the solution, the system requirements have to be determined.



1.1.1.1 Language Import and Code Page This part gives you some information about the installation of languages in SAP R/3. The language import must always be performed in client 000. The supplementation must first be performed in client 000 and can then be scheduled in higher clients. However, only client-specific tables are supplemented. The language import should ALWAYS be executed BEFORE the client copy during the installation. Additional information can be found for every <rel> release; there is a Current note on language import <rel> with comments on known problems and additional information. For more information, refer to the online help in Transaction SMLT and the guide for language transport. Please see the appendix for a list of notes referring to language import.

1.1.1.2 Comparison Client Without Test Data For a comparison client, you should set up a copy of client 000 and install the solution. After that, no changes should be made to the settings in that client. This will ensure that a working client is available for comparison purposes. This client can be used as copy model.

1.1.1.3 Comparison Client with Test Data Here you can perform tests of all processes in the delivered countries. You may also create master data and transaction data (postings) using CATTs (Computer Aided Test Tools).

1.1.1.4 Development Client The development client is set up as a copy of the comparison client without test data (no master data and no transaction data). The country specific Customizing is then added.

If the Country Installer is to be used in the development client, then the development client should be set up as a copy of Client 000. For more detailed information please see the description of the client for the Country Installer.

Recommendations for the Development Client

• The changes for localization purposes should be saved in BC-Sets (Business Configuration Sets). This will not only improve the re-usability of localization settings but it also supports the upgrading of the solution.

• BC-Sets are stored in Workbench Requests. These can be transported to a test system for test purposes (consolidation test).

• Customizing settings can additionally be saved in Customizing Requests. In connection with delivery to customers it has to be decided whether the Customizing Requests are saved locally or whether they are to be used for a further transport.



• When making Customizing changes, remember to do these changes in BC-Sets at the same time.

• In the development client there should be neither master data nor transaction data. • To create master data, you can develop CATTs in the development client. These should however

be created remotely via a test client. For security reasons it should not be allowed to run CATTs in transaction SCC4.

• CATTs that create transaction data are very useful for testing BC-Sets. The effort required to create the CATTs is more than made up by the reduced effort in testing BC-Sets.

1.1.1.5 Test Client The test client is used to test the country-specific Customizing settings. Possible ways to set up the test client:

• Copy of comparison client without test data, activation of BC-Sets for localization, followed by the creation of master data

• Copy of development client, followed by the creation of master data • Copy of comparison client without test data, import of Customizing Requests, followed by the

creation of master data Testing of BC-Sets is only possible in the first case. Depending on the test strategy you may consider setting up different test clients.

1.1.1.6 Client for the Country Installer Program In this client you can start the Country Installer and copy the settings to a transport request and BC-Sets.

1.1.2 Country Installer Program The Country Installer is used to install country-specific settings.

Please note the report documentation for Report RFCICO02 (Country installation program).

1.1.2.1 Use with Business Configuration Sets

Use An empty client (copy of Client 000) is used as basis.

Transport system is active (see transaction SCC4).

The Country Installer is started for the relevant country-specifying a transport request.

Based on the transport request, BC-Sets could be created.



The organizational units in the BC-Sets are converted to variable fields.

The BC-Sets created on the basis of the transport request can be used to copy the settings of the Country Installer in the development client in a flexible way, even with the industry solution already in place. Possible ways of using the BC-Sets (with Country Installer settings):

1. Compare tables with the settings of the target organization areas in the variable fields of the BC-Sets

2. Copy BC-Sets and delete any table entries that are not required

3. Activate the copied BC-Set with settings of the target organization areas in the variable fields of the BC-Sets

1.1.2.2 Direct Use in Development Client

Use Alternatively, you can also use the development client. For this purpose the development client has to be set up as a copy of Client 000. Carry out the following steps:

1. Make a copy of Client 000 as development client

2. Activate transport system

3. Start Country Installer for the relevant country, specifying a transport request. Company code 0001 is thus set.

4. Copy company code 0001 to the target company code

5. Import the preconfigured solution without master data and without transaction data (see section Comparison Client Without Test Data)

As a result of this procedure it can happen that Country Installer settings are overwritten by the preconfigured solution. Then you must either manually change the settings accordingly or correct them afterwards using BC-Sets.

Prerequisites The Country Installer sets up company code 0001. For now you should not make any further settings in the client in addition to that.

Once a preconfigured solution is set up in the client, existing settings can be overwritten by the Country Installer.

Procedure 1. Access the transaction using:

IMG Menu path Enterprise Structure � Country-specific settings � Change country-specific settings

Transaction code O035

2. On the <Customizing: Country Version> screen, enter the necessary data.

Field name

Description R./O./C User action and values Comment

Country Version

Enter



Country to install

<country key> e.g. FR (France), DE (Germany), IT (Italy)

Test Run Result list without change of table entries

Result The Country Installer settings for a specific country are copied.

1.1.3 Creation of a New Company Code Using the Country Installer As part of the localization measures, a new company code is to be created on the basis of the settings of the existing solution for the relevant country.

This documentation contains no further details regarding the adaptation of business processes, due to the fact that these are solution-specific and country- specific.

Technical Requirements

• Development client set up • No Customizing • No master data, no transaction data

1.1.3.1 Notes on the Use of the Country Installer Program

Use To create a new company code in an additional country, you should run the Country Installer for that country before importing the solution. Company code 0001 thus receives the country-specific settings. After that, you should copy company code 0001 to the target company code. Finally, import the transport requests of the solution.

Importing the preconfigured solution can result in the Country Installer settings being overwritten. After importing the solution you may use a BC-Set containing the Country Installer settings (see also section Country Installer), if available, to carry out corrections and adjustments if necessary.

Please note the report documentation for Report RFCICO02 (country installation program).

Procedure See Country Installer.



1.1.3.2 Organizational Requirements The creation of a new company code should only be done by experienced FI/CO consultants.

1.1.3.3 Copying Company Code 0001 to Target Company Code

Use Next, the company code 0001 that was created by the Country Installer has to be copied to the target company code. If the company code is to be newly created, you must first make sure that there is no company code with the same number in the solution.

When copying you should also copy the chart of accounts and the local currency of company code 0001, even if eventually the company’s own chart of accounts is to be used. The conversion to the company’s own chart of accounts is then done in a separate step. Exception: If you want to use some other of the SAP standard chart of accounts, that can be specified.


IMG Menu path Enterprise Structure � Definition � Financial Accounting � Define, copy, delete, check company code

Transaction code EC01

7. On the <Organizational object Company code> screen, enter the necessary data.

Field name Description R./O./C User action and values Comment Copy, delete, check company code

Enter

Copy organ. Object Enter From company code

0001

To company code Target company code

Result The company code is copied.



1.1.3.4 Maintaining Company Codes

Use For all company codes that are to be used, you have to maintain addresses, sales tax ID, fiscal year etc. with the customer’s own data.


IMG Menu path Financial Accounting � Financial Accounting Global Settings � Company Code � Enter Global Parameters

Transaction code -

2. On the <Display Structure> screen, enter the necessary data.

Field name


CoCd Company Code Select new added company code (double click)

3. On the <Display Structure> screen, enter the necessary data.

Field name


Maintain accounting organization

Maintain processing parameters

Maintain address data of company code

Maintain additional details (intrastat, extrastat)

Result The company code data is maintained.

1.1.3.5 Removing Assignments to Company Codes no Longer Needed

Use The company codes of the preconfigured solutions that are no longer needed in the localized version have to be removed from the enterprise structure. This means that you have to remove the existing organizational assignments.

Prerequisites In Controlling there must be no master data or transaction data. Therefore you have to delete the following:

• Cost centers

• Cost elements

• Orders



Procedure 1. Access the transaction using <Delete Cost Centers>:

IMG Menu path Controlling � General Controlling � Production Start-Up Preparation � Delete Test Data � Delete Cost Centers

Transaction code OKC4

2. On the <Delete Cost Centers> screen, enter the necessary data.

Field name Description R./O./C User action and values Comment Controlling Area <assigned controlling area

of cost centers to be deleted>

Execute

3. Access the transaction using <Delete Cost Elements>:

IMG Menu path Controlling � General Controlling � Production Start-Up Preparation � Delete Test Data � Delete Cost Elements

Transaction code OKC5

4. On the <Delete Cost Elements> screen, enter the necessary data.


of cost elements to be deleted>

Execute

5. Access the transaction using <Delete Orders>:

IMG Menu path Controlling � General Controlling � Production Start-Up Preparation � Delete Test Data � Delete Orders

Transaction code OKO5

6. On the <Delete CO Orders> screen, enter the necessary data.


of CO orders to be deleted>

Execute

7. Access the transaction using <Assignment>:

Next, you have to delete all assignments of company codes. The assignments are found under: IMG Menu path Enterprise Structure � Assignment � … Transaction code -

Company code assignments are done in the following IMG activities:

� Financial Accounting

o Assign Company Code to Company o Assign Company Code to Credit Control Area o Assign Company Code to Financial Management Area

� Controlling o Assign Company Code to Controlling Area

� Logistics General o Assign Plant to Company Code

� Sales and Distribution o Assign Sales Organization to Company Code

� Materials Management o Assign Purchasing Organization to Company Code

Result All assignments of the company codes no longer needed are deleted.



1.1.3.6 Maintaining Address and Currencies

Use There are further adjustments to be made in the enterprise structure concerning address, (possibly) currency and chart of accounts.

Prerequisites In the Client Maintenance (transaction SCC4) the currency is entered as group currency.


IMG Menu path Enterprise Structure � Definition � Financial Accounting � Define Credit Control Area

Transaction code -

2. On the <Change View “Credit Control Areas”: Overview> screen, enter the necessary data.

Field name Description R./O./C User action and values Comment CCAr Credit control area Select credit control area Details Currency Check currency Update

currency, if different

Save

3. Access the transaction using:

IMG Menu path Controlling � General Controlling � Organization � Maintain Controlling Area

Transaction code OKKP

4. On the <Change View “Basic Data”: Overview> screen, enter the necessary data.

Field name Description R./O./C User action and values Comment COAr Controlling Area Select controlling Area Details

5. On the <Change View “Basic Data”: Details> screen, enter the necessary data.

Field name Description R./O./C User action and values Comment Currency Type 30 Group Currency Details In the controlling area you can set currency type 30 (group currency). Thus the currency is taken from table T001 which is maintained during the definition of the client.


IMG Menu path Enterprise Structure � Definition � Logistics General � Define, copy, delete, check plant

Transaction code -

2. On the <Change View “Plants”: Overview> screen, enter the necessary data.

Field name Description R./O./C User action and values Comment Plant Select Plant Details

3. On the <Change View “Plants”: Details> screen, enter the necessary data.

Field name Description R./O./C User action and values Comment Address Select Maintain address data Save


IMG Menu path Enterprise Structure � Definition � Sales and Distribution � Define, copy, delete, check sales organization



Transaction code -

5. On the <Change View “Sales Organization”: Overview> screen, enter the necessary data.

Field name Description R./O./C User action and values Comment Sales Organization

Select sales organization

Details

6. On the <Change View “Sales Organization”: Details> screen, enter the necessary data.

Field name Description R./O./C User action and values Comment Address Select Maintain address data save

Depending on the solution specification, the above-listed steps to change currency field and address data can be extended to include further activities that have to be considered for that purpose.

1.1.3.7 Integrating the New Company Code into the Enterprise Structure

Use Before deleting the old company codes that are no longer needed, the newly created company code has to be integrated into the solution’s enterprise structure.

Prerequisites The new company code has already been created (see also section Country Installer).


IMG Menu path Enterprise Structure � Assignment � Financial Accounting � Assign Company Code to Company

Transaction code OBR2

2. On the <Change View “Assign Company Code � Company”: Overview> screen, enter the necessary data.

Field name Description R./O./C User action and values Comment

CoCd Company Code Select Company Add company Maintenance of

new company code

Save


IMG Menu path Enterprise Structure � Assignment � Financial Accounting � Assign company code to credit control area

Transaction code -

4. On the <Change View “Assign Company Code � Credit Control Area””: Overview> screen, enter the necessary data.




CoCd Company Code Select CCAr Credit Control Area Add credit control area Maintenance of

new company code

Save


IMG Menu path Enterprise Structure � Assignment � Controlling � Assign company code to controlling area

Transaction code -



CoCd Company Code Select Assignment of company codes

Select

7. On the <Change View “Assignment of Company Code(s)”: Overview> screen, enter the necessary data.


New entries Select CoCd Company Code Add company code Maintenance of

new company code

Save


Menu IMG Enterprise Structure � Assignment � Logistics General � Assign Plant to Company Code

Transaction code OX18

9. On the <Allocation of Plants -> Company Code: Overview> screen, enter the necessary data.


CoCd Company Code Select Assign plant Save


IMG Menu path Enterprise Structure � Assignment � Sales and Distribution � Assign sales organization to company code

Transaction code OVX3

11. On the <Sales Organization � Company Code: Overview> screen, enter the necessary data.


CoCd Company Code Select Assign sales organization Save


IMG Menu path Enterprise Structure � Assignment � Materials Management � Assign purchasing organization to company code


13. On the <Purchasing Organization -> Company Code: Overview> screen, enter the necessary data.


CoCd Company Code Select Assign purchasing

organization

Save



Result The company code is assigned.

1.1.3.8 Deleting G/L Accounts

Use All G/L accounts of the company codes not needed have to be deleted.


IMG Menu path Financial Accounting � General Ledger Accounting � G/L Accounts � Master Records � Deletion � Delete G/L Account


2. On the <Deleting Master Data> screen, enter the necessary data.


Delete G/L accounts

Select

In Company Code

Enter the not required company code

Test run Select List of entries to be deleted without change of database

Execute

Result The accounts are deleted.

1.1.3.9 Deleting Company Codes that are not Used

Use When all of the above steps have been executed, you can delete the company codes that are no longer needed.

Prerequisites • No master data, no transaction data • No assignments • No G/L account at company code level


IMG Menu path Enterprise Structure � Definition � Financial Accounting � Define, copy, delete, check company code � Copy, delete,



check company code

Transaction code EC01

2. On the <Organizational object Company code> screen, enter the necessary data.


Delete org. object Company Code Enter the company code to

be deleted

Confirm

Result The company code is deleted.

1.1.3.10 Copying Document Number Ranges to New Company Code

Use All document number ranges are copied from company code 0001 to the newly created company code.

Prerequisites • The document number ranges in company code 0001 are maintained (Country Installer). • The new company code has been created.


IMG Menu path Financial Accounting � Financial Accounting Global Settings � Document � Document number ranges � Copy to company code

Transaction code OBH1

2. On the <Document Number Ranges: Copying to Company Code> screen, enter the necessary data.

Field name Description R./O./C User action and values Comment Source Company Code details

0001

Target Campany Code details

Enter the new added company code

Execute

Result The number ranges are copied.

1.1.4 Use of Standard SAP Chart of Accounts If you want to use a chart of accounts delivered by SAP, then the following section gives you a description of how you can convert a newly created company code to that chart of accounts.



In another documentation below, you will also find information on how you can link the new company code to your own chart of accounts.

As the conversion to a chart of accounts can be very much dependent on the solution, the following description may be incomplete. Although the individual points can be used as a check-list, you still need to extend these steps in accordance with content details of the solution that is to be localized.

1.1.4.1 Maintaining Cost Elements in Controlling Area

Use In the controlling area you have to create all the required cost elements. Primary cost elements (costs and revenues) can be copied by batch run from SAP FI. For that purpose, a batch input session is created in the IMG and started. First, you should check the default settings to see whether cost elements are to be created for all of the defined accounts. For example, revenue accounts have to be created in dependency of definitions in the profitability analysis and Profit Center Accounting. Secondary cost elements have to be created manually in the controlling area. Thus they will only exist in the controlling area.

Prerequisites • Chart of accounts (company code) • Controlling area


IMG Menu path Controlling � General Controlling � Cost Element Accounting � Master Data � Cost Elements � Make Default Settings

Transaction code OKB2

2. On the <Automatic Cost Element Generation: Maintain Default Settings> screen, enter the necessary data.

Field name Description R./O./C User action and values Comment New Entries Add cost

elements Delete Remove cost

elements not to be added to the controlling area

Result The default settings for the batch input session are created.

1.1.4.2 Changes in the Controlling Area For information on this section, select the relevant items in the substructure.



1.1.4.2.1 Changing Cost Elements in Activity Types

Use The accounts in the controlling area have to be adjusted.

Prerequisites Cost elements in the controlling area have been created.


IMG Menu path Controlling � Cost Center Accounting � Master Data � Activity Types � Create Activity Types � Change Activity Type

Transaction code KL02

2. On the <Change Activity Type: Initial screen> screen, enter the necessary data.


Activitiy Type Enter activity type Repeat the steps for all activity types to be changed.

Enter

3. On the <Change Activity Type: Basic screen> screen, enter the necessary data.


Cost element Enter cost element Basic Data Save

1.1.4.2.2 Changing Cost Elements in Overhead Structures




IMG Menu path Controlling � Cost Center Accounting � Planning � Planning Aids � Accrual Calculation � Percentage Method � Maintain Overhead Structure

Transaction code KSAZ

2. On the < Maintain CO-OM Accrual Calculation:Overhead Struc. Overview> screen, enter the necessary data.




Overhead structures

Select controlling area with double click

Screen: Overview

Select controlling area Screen: Select assignments

Select plan (actual) assignments

Choose overhead structure Screen: Plan (actual) assignments

Credit Select credit entries with double click

Screen: Overhead struc.detail

3. On the <Maintain CO-OM Accrual Calculation: Credit Detail> screen, enter the necessary data.


Cost element Enter cost element Save

1.1.4.2.3 Changing Cost Elements in Distribution Cycles




IMG Menu path Plan: Controlling � Cost Center Accounting � Planning � Allocations � Distribution � Define Distribution Actual: Controlling � Cost Center Accounting � Actual Postings � Period End Closing � Distribution � Define Distribution

Transaction code KSAZ (plan) KSV2 (actual)

2. On the <Change Actual (Plan) Distribution Cycle: Initial Screen> screen, enter the necessary data.


Cycle Select Cycle Enter

3. On the < Change Actual (Plan) Distribution Cycle: Header Data> screen, enter the necessary data.


Choose First Segment

4. On the < Change Actual (Plan) Distribution Cycle: Segment> screen, enter the necessary data.


Choose sender/receiver Cost element Change cost elements for

senders and/or receivers



Next segment Repeat above steps

Save

1.1.4.2.4 Changing Cost Elements in Assessment Cycles




IMG Menu path Plan: Controlling � Cost Center Accounting � Planning � Allocations � Assessment � Define Assessment Actual: Controlling � Cost Center Accounting � Actual Postings � Period End Closing � Assessment � Maintain Assessment

Transaction code KSU8 (plan) KSU2 (actual)

2. On the <Change Actual (Plan) Assessment Cycle: Initial Screen> screen, enter the necessary data.



3. On the <Change Actual (Plan) Assessment Cycle: Header Data> screen, enter the necessary data.



4. On the <Change Actual (Plan) Assessment Cycle: Segment> screen, enter the necessary data.


Choose segment hdr Cost element Change assessment cost

element




Save

1.1.4.2.5 Changing Cost Elements in Indirect Activity



Allocation




IMG Menu path Plan: Controlling � Cost Center Accounting � Planning � Allocations � Activity Allocations � Indirect Activity Allocation � Define Indirect Activity Allocation Actual: Controlling � Cost Center Accounting � Actual Postings � Period End Closing Allocations � Activity Allocations � Indirect Activity Allocation � Define Indirect Activity Allocation

Transaction code KSC8 (plan) KSC2 (actual)

2. On the <Change Actual (Plan) Indirect Activity Allocation Cycle: Initial Screen> screen, enter the necessary data.



3. On the < Change Actual (Plan) Indirect Activity Allocation Cycle: Header Data> screen, enter the necessary data.



4. On the < Change Actual (Plan) Indirect Activity Allocation Cycle: Segment> screen, enter the necessary data.





Save

1.1.4.2.6 Changing Cost Elements in Indirect Costing Sheets





Procedure Access the transaction using:

IMG Menu path Controlling � Cost Center Accounting � Actual Postings � Period-End Closing � Overhead � Costing Sheets : Components The following Components are to be maintained: Define Calculation Bases Define Credits

Transaction code KZA1

1.1.4.2.7 Changing Cost Elements in Settlement Rule of Internal Orders




IMG Menu path Controlling � Internal orders � Planning � Maintain Settlement

Transaction code OKOA

All steps are to be checked for use of cost elements.

Result The used cost elements in the controlling areas are adapted. Please note that the listed steps provide only an overview of required actions. Depending on the specific solutions other steps have to be considered.

1.1.4.3 Maintaining Revenue Account Determination

Use The account determinations for the sales organizations have to be revised. The entries of the used chart of accounts are copied to the sales organization. Some parts of the account determination can be copied from sales organization 0001 (for account determination types KOFK und KOFI). For maintenance, you should first look for existing entries for the sales organization and the previously used chart of accounts. These can then be maintained for the new chart of accounts.


IMG Menu path Sales and Distribution � Basic Functions � Account Assignment / Costing � Revenue Account Determination � Assign G/L



accounts

Transaction code VKAO

1.1.4.4 Maintaining Materials Management Account Determination

Use The account determination can be copied. Additional entries are needed if there are specific account modifications used in the solution (for example, assignment by account assignment category purchase order). In these cases you have to maintain these for the chart of accounts. Procedure:

• Select GBB (offsetting entry to stock posting) • Select chart of accounts • Enter account modification for all valuation classes • Select G/L account in chart of accounts

Transaction for account assignment categories: OME9


IMG Menu path Materials Management � Valuation and Account Assignment � Account Determination � Account Determination without wizard � Configure Automatic Postings

Transaction code OMWB

The field status group of the G/L account must not be in conflict with the field selection of the account assignment category.

The field status group of the G/L account must allow the field selection of the account assignment category. The procedure of changing the field status group of the G/L account is described in the appendix.

1.1.5 Currencies For information on this section, select the relevant items in the substructure.



1.1.5.1 Maintaining Client Group Currency

Use The currency of the client has to be adapted to the country currency.

Prerequisites


IMG Menu path Tools � Administration � Administration � Client Administration � Client Maintenance

Transaction code SCC4

2. On the <Display View: “Clients”: Overview> screen, enter the necessary data.

Field name Description R./O./C User action and values Comment Select your client Details

3. On the <Display View: “Clients”: Details> screen, enter the necessary data.

Field name Description R./O./C User action and values Comment Std currency <currency> save

Result The client group currency is maintained.

The client independent table T000 will be changed.

1.1.5.2 Maintaining Currencies in Organizational Data

Use The currencies have to be adapted in the organizational data.

The following description is based on Best Practices and does not provide a complete overview of all possibilities. You can find further information in OSS notes.

The following organizational units need a setting for the currency: Company Credit Control Area Company Code Financial Management Area

Controlling Area

Operating Concern Sales Organization Release Strategy Maintenance parameters (client) Default values for Work Breakdown Structure Network defaults Company Code-dependent Release Data



Prerequisites Necessary organizational units are defined and created.


Menu/IMG Company Credit Control Area Company Code Financial Management Area Controlling Area Operating Concern Sales Organization Release Strategy Maintenance parameters (client) Default values for Work Breakdown Structure Network defaults Company Code-Dependent Release Data

Enterprise Structure � Definition � Financial Accounting � Define Company Define Credit Control Area Define Company Code � Edit Company Code Data Maintain financial. management area Enterprise Structure � Definition � Controlling � Maintain Controlling Area Controlling � Profitability Analysis � Structures � Define Operating Concern � Maintain Operating Concern Enterprise Structure � Definition � Sales and Distribution � Define, copy, delete, check sales organization � Define Sales Organization Materials Management � Purchasing � Purchase Requisition � Release Procedure � Set up Procedure � Determination of Release Strategy Plant Maintenance and Customer Service -> Master Data � Basic Settings � Define Currency for Maintenance Statistics Project System � Structures � Operative Structures � Work Breakdown Structure � Create Project Profile Project System � Structures � Operative Structures � Network - Settings for Network � Maintain network profile Financial Accounting � General Ledger Accounting � Bus. Transactions � Carry out and Check Settings for document parking � create workflow variant for document parking

Transaction code -

2. On the Overview/Maintenance screen, enter the necessary data.

Table / Field name

Description Currency Comment

T880 Company Country currency FM01 Financial

Management Area Country currency

T001 Company Code Country currency T014 Credit Control Area Country currency TKA01 Controlling Area Country currency TKEBL Operating concern Country currency TVKO Sales Organization Country currency T161I Release Strategy Country currency T399J Maintenance

parameters (client) Country currency

TCJ41 Default values for Work Breakdown Structure

Country currency

TCN41 Network defaults Country currency VBWF01 Company Code-

dependent Release Data

Country currency

Result All organizational data is adapted to the new currency.



1.1.6 Other For information on this section, select the relevant items in the substructure.

1.1.6.1 Maintaining Field Status Groups


IMG Menu path Financial Accounting � Financial Accounting Global Settings � Document � Line Item � Controls � Maintain Field Status Variants

Transaction code -

2. On the <Change View “Field Status Variants”: Overview> screen, enter the necessary data.

Field name


Select field status variant The field status variant is assigned to the company code

Double click field status groups

3. On the <Change View “Field Status Groups”: Overview> screen, enter the necessary data.

Field name


Select required field status group

The field status group is assigned to accounts

Double click field status groups

1.1.6.2 Language Import (Notes) For information on this section, select the relevant items in the substructure.



1.1.6.2.1 Required Notes

Note No. Title Category

195443 Current Information on Language Import 4.6C Information on installation

195446 Space Requirements for the 4.6 Language Import

Information on installation

97476 Language Availability 4.0x - 4.6x Release planning information

73606 R/3 Language Combinations Recommendations / additional information

15023 Initializing Table TCPDB Information on installation

1.1.6.2.2 Recommended Notes

Note No. Title Category

2857 Which Table Delivery Classes Are There? Importance?

Recommendations / additional information

28148 Table Category Processing During Language Import


48047 Mode of Operation of Report RSREFILL Workaround for missing functions

18601 Frequently Asked Questions on Language Import


136649 R3trans : Selective Language Import Recommendations / additional information

195442 Language Import and Support Packages Recommendations / additional information

More information can be found under: http://service.sap.com/globalization You need your SAPNet R/3 Frontend user (former OSS user) and password to access the SAP Service Marketplace.



More information about code page is available in the following notes: 073606 (R/3 language combinations) 103935 (R/3 Single Code Page (NLS) Installation) 103687 (R/3 SAP Blended Code Page Installation)

1.2 How to Add a New Chart of Accounts The following section gives you a description of how you can convert a Best Practices solution to your own individual chart of accounts. You will find a selection of steps that you can carry out when using Best Practices; however, these steps do not represent a complete list of all possible actions. This documentation does not describe any further country-specific adaptations. (see the country-dependent localization guides). It is a prerequisite for the following measures that a company code has already been installed.

This documentation does not cover automatic account determination used within Human Resources. For further information please refer to the relevant Best Practices documentation.

1.2.1 Creating New Chart of Accounts

Use Unless you want to use a chart of accounts delivered by SAP, you have to create a new chart of accounts.

Prerequisites Company code.


IMG Menu path Financial Accounting � General Ledger Accounting � G/L accounts � Master Records � Preparations � Edit Chart of Accounts List

Transaction code Ob13

2. On the <Change View: “List of all Chart of Accounts”: Overview> screen, enter the necessary data.

Field name


New entries or copy existing template

Add new chart of account

T004-KTOPL

Chart of accounts <chart of account>

T004-DSPRA

Maintenance language for the chart of accounts

Country language

Result The new chart of accounts is maintained.



1.2.2 Adding Account Groups

Use Account groups are to be assigned to the chart of accounts. Further steps include the maintenance of account groups in the account master data records.

Prerequisites Chart of accounts exists.


IMG Menu path Financial Accounting � General Ledger Accounting � G/L accounts � Master Records � Preparations � Define Account Group

Transaction code OBD4

Result The account groups are added.

1.2.3 Deleting Delivered Accounts in the Company Code

Use Best Practices include accounts created in the company code. Before you can use the new chart of accounts with the respective accounts. These have to be deleted before you can use the new chart of accounts with the respective accounts.

Prerequisites There is no transactional data in the company code.


IMG Menu path Financial Accounting � General Ledger Accounting � G/L accounts � Master Records � Deletion � Delete G/L account


2. On the <Deleting Master Data> screen, enter the necessary data.

Field name


Delete G/L accounts

Mark

In company code

Enter company code



Execute

Result The accounts in the company code are deleted.

1.2.4 Assigning Chart of Accounts to Company Code and Controlling Area

Use The newly created chart of accounts has to be assigned to the company code and the controlling area.

First you have to do the assignment to the company code. You can disregard the warning which says that the controlling area has a different company code. Then you can adapt the controlling area.

Prerequisites No transactional data exists in controlling area.


IMG Menu path Financial Accounting � General Ledger Accounting � G/L accounts � Master Records � Preparations � Assign Company Code to Chart of Accounts

Transaction code OB62

2. On the <Change View: “Assign Company Code -> Chart of Accounts”: Overview> screen, enter the necessary data.

Field name


Select your company code and double click

Chrt/accts Enter the new added chart of account

save


IMG Menu path Controlling � General Controlling � Organization � Maintain Controlling Area

Transaction code OKKP


Field name


Select controlling area and double click

5. On the <Change View “Basic Data”: Details> screen, enter the necessary data.

Field name


Chart of accts

Change to new chart of accounts

Save



Result The chart of accounts is assigned to the company code and controlling area.

1.2.5 Maintaining Accounts in Chart of Accounts

Use For the newly added chart of accounts all accounts are to be maintained. That can be done by manually adding every account or by using copy functionality of accounts in other chart of accounts which are similar.

Please consider any newly created account groups.

Prerequisites The accounts are defined. It could be useful to have a list of all accounts with required entries before maintaining the data in the system.

Procedure You can find all related transactions in the implementation guide: Access the transaction using:

IMG Menu path Financial Accounting � General Ledger Accounting � G/L accounts � Master Records � G/L account creation and processing

Transaction code -

Result The accounts are added to the chart of accounts and to the company code.

The company-code-dependent part of the chart of accounts can only be transported manually. For that purpose, you have to create a transport request with the following object list: R3TR TABU SKB1 Key: Client, Company Code, * (for all accounts)

1.2.6 Maintaining Controlling Area When using a new chart of accounts you have to adapt the existing controlling area. For that purpose the cost elements are to be created in accordance with the new chart of accounts, and you have to change all other master data and Customizing settings accordingly. After assigning the chart of accounts (see section Assignment of Chart of Accounts to Company Code and Controlling Area) you can proceed with the following steps in the controlling area.



1.2.6.1 Changing Cost Elements in Controlling Area

Use In the controlling area you have to create all the required cost elements. Primary cost elements (costs and revenues) can be copied by batch run from SAP FI. For that purpose, a batch input session is created in the IMG and started. First, you should check the default settings to see whether cost elements are to be created for all of the defined accounts. For example, revenue accounts have to created in dependency of definitions in the profitability analysis and Profit Center Accounting. Secondary cost elements cannot be created by batch run. They exist only in the controlling area.

The Controlling settings have to be adapted to the new chart of accounts. For that purpose you have to check all master data in Controlling and change any cost elements that need to be changed. The steps to that effect are dependent on the solution. For Best Practices we recommend using CATTs (Computer Aided Test Tools) for this purpose. The CATTs allow you to carry out the necessary master data changes through changes in the variants.

Prerequisites • Chart of accounts (company code) • Controlling area


IMG Menu path Controlling � General Controlling � Cost Element Accounting � Master Data � Cost Elements � Make Default Settings

Transaction code OKB2

Result Cost elements are maintained for the controlling area.

Cost elements groups are frequently used in Best Practices. However, for this purpose we rather recommend adapting the existing cost element groups (converting to new cost elements) instead of creating new ones. Thus you can reduce the need for further effort in Customizing, such as adaptations in the allocation cycles.

For further information on adapting the cost elements in the activity types and the cycles in the Cost Center Accounting please refer to section Use of Standard SAP Chart of Accounts.

1.2.6.2 Changing Cost Elements in Activity Types




IMG Menu path Controlling � Cost Center Accounting � Master Data � Activity Types � Create Activity Types � Change Activity Type



Transaction code KL02

5. On the <Change Activity Type: Initial screen> screen, enter the necessary data.


Activitiy Type Enter activity type Repeat the steps for all activity types to be changed.

Enter

6. On the <Change Activity Type: Basic screen> screen, enter the necessary data.


Cost element Enter cost element Basic Data Save

1.2.6.3 Changing Cost Elements in Overhead Structures




IMG Menu path Controlling � Cost Center Accounting � Planning � Planning Aids � Accrual Calculation � Percentage Method � Maintain Overhead Structure

Transaction code KSAZ

5. On the < Maintain CO-OM Accrual Calculation:Overhead Struc. Overview> screen, enter the necessary data.


Overhead structures

Select controlling area with double click

Screen: Overview

Select controlling area Screen: Select assignments

Select plan (actual) assignments

Choose overhead structure Screen: Plan (actual) assignments

Credit Select credit entries with double click

Screen: Overhead struc.detail

6. On the <Maintain CO-OM Accrual Calculation: Credit Detail> screen, enter the necessary data.


Cost element Enter cost element Save



1.2.6.4 Changing Cost Elements in Distribution Cycles




IMG Menu path Plan: Controlling � Cost Center Accounting � Planning � Allocations � Distribution � Define Distribution Actual: Controlling � Cost Center Accounting � Actual Postings � Period End Closing � Distribution � Define Distribution

Transaction code KSAZ (plan) KSV2 (actual)

6. On the <Change Actual (Plan) Distribution Cycle: Initial Screen> screen, enter the necessary data.



7. On the < Change Actual (Plan) Distribution Cycle: Header Data> screen, enter the necessary data.



8. On the < Change Actual (Plan) Distribution Cycle: Segment> screen, enter the necessary data.





Save

1.2.6.5 Changing Cost Elements in Assessment Cycles






IMG Menu path Plan: Controlling � Cost Center Accounting � Planning � Allocations � Assessment � Define Assessment Actual: Controlling � Cost Center Accounting � Actual Postings � Period End Closing � Assessment � Maintain Assessment

Transaction code KSU8 (plan) KSU2 (actual)

6. On the <Change Actual (Plan) Assessment Cycle: Initial Screen> screen, enter the necessary data.



7. On the <Change Actual (Plan) Assessment Cycle: Header Data> screen, enter the necessary data.



8. On the <Change Actual (Plan) Assessment Cycle: Segment> screen, enter the necessary data.


Choose segment hdr Cost element Change assessment cost

element




Save

1.2.6.6 Changing Cost Elements in Indirect Activity Allocation




IMG Menu path Plan: Controlling � Cost Center Accounting � Planning � Allocations � Activity Allocations � Indirect Activity Allocation � Define Indirect Activity Allocation Actual: Controlling � Cost Center Accounting � Actual Postings � Period End Closing Allocations � Activity Allocations � Indirect



Activity Allocation � Define Indirect Activity Allocation

Transaction code KSC8 (plan) KSC2 (actual)

6. On the <Change Actual (Plan) Indirect Activity Allocation Cycle: Initial Screen> screen, enter the necessary data.



7. On the < Change Actual (Plan) Indirect Activity Allocation Cycle: Header Data> screen, enter the necessary data.



8. On the < Change Actual (Plan) Indirect Activity Allocation Cycle: Segment> screen, enter the necessary data.





Save

1.2.6.7 Changing Cost Elements in Indirect Costing Sheets




IMG Menu path Controlling � Cost Center Accounting � Actual Postings � Period-End Closing � Overhead � Costing Sheets : Components The following Components are to be maintained: Define Calculation Bases Define Credits

Transaction code KZA1

1.2.6.8 Changing Cost Elements in Settlement Rule of



Internal Orders




IMG Menu path Controlling � Internal orders � Planning � Maintain Settlement

Transaction code OKOA

All steps are to be checked for use of cost elements.

Result The used cost elements in the controlling areas are adapted. Please note that the listed steps provide only an overview of required actions. Depending on the specific solutions other steps have to be considered.

1.2.7 Automatic Account Determination (Financial Accounting) In Financial Accounting you have to maintain the automatic account determination completely for all relevant activities for the new chart of accounts. The following section gives you an overview of the account determinations which are delivered as part of Best Practices.

1.2.7.1 Taxes


IMG Menu path Financial Accounting � Financial Accounting Global Settings � tax on sales / purchases � Posting � Define tax accounts




1.2.7.2 Cash Discounts, Exchange Rate Differences and Other Differences in Balancing Open Items


IMG Menu path Financial Accounting � Accounts receivable and accounts payable � Business Transactions � Outgoing payments � Outgoing payments global settings � …

Transaction code -

1.2.7.3 Down Payments (Accounts Receivable / Accounts Payable)


IMG Menu path Financial Accounting � Accounts receivable and accounts payable � Business Transactions � Down payments received / down payments made � …

Transaction code -

1.2.7.4 Special G/L Transactions


IMG Menu path Financial Accounting � Accounts receivable and accounts payable � Business Transactions � Postings with alternative reconciliation account � Other special G/L transaction � Generate List for Special General Ledger

Transaction code OBl3



1.2.7.5 Payment Program (Automatic Payments)


IMG Menu path Financial Accounting � Accounts receivable and accounts payable � Business Transactions � Outgoing payments � Automatic outgoing payments � Payment Method/Bank Selection for Payment Program � Set up Bank Determination � for Payment Transactions (choose bank accounts)

Transaction code -

1.2.7.6 Period-End Closing


IMG Menu path Financial Accounting � General Ledger Accounting � Business Transactions � Closing � …

Transaction code -

1.2.7.7 Automatic Postings from Other Applications


IMG Menu path Financial Accounting � General Ledger Accounting � Business Transactions � Integration � …

Transaction code -

Tables T030 and T074 contain the account determinations and can be evaluated for Best Practices analysis purposes (display through transaction se16).



1.2.8 Automatic Account Determination (Asset Accounting)

Use In Asset Accounting, all account determinations have to be revised.


IMG Menu path Financial Accounting � Asset Accounting � Integration with the General Ledger � Assign G/L Accounts

Transaction code AO90

1.2.9 Automatic Account Determination (Materials Management)

Use For scenarios and processes in Materials Management, the account determinations have to be revised.

Please note that Warehouse Management is not covered.


IMG Menu path Materials Management � Valuation and Account Assignment � Account Determination � Account Determination Without Wizard � Configure Automatic Postings (account assignment)

Transaction code OMWB

1.2.10 Automatic Account Determination (Sales and Distribution)

Use For scenarios and processes in Sales and Distribution, the account determinations have to be revised.

This documentation does not consider specific processes dealing with the integration with Controlling, such as, for example, the profitability analysis.




IMG Menu path Sales and Distribution � Basic Functions � Account Assignment/Costing � Revenue Account Determination � Assign G/L Accounts

Transaction code VKOA

1.2.11 Defining Financial Statements

Use The accounts have to be newly assigned to the financial statement structure.

You can copy the delivered Best Practices structure. After that you have to adapt the accounts manually.


IMG Menu path Financial Accounting � General Ledger Accounting � Business Transactions � Closing � Documenting � Define Financial Statement Versions

Transaction code FSE2

2 Country-Dependent Localization Guide For information on this section, select the relevant items in the substructure.

2.1 FR - Localization Guide France

Purpose This document should help to localize an existing SAP solution according to the typical requirements of a French company. Therefore it lists the most important customizing activities where the settings are likely to be different from other countries, and gives hints and proposals for these settings. The description also covers the settings made by the country installation program. Account determination settings are only described if there are specific functionalities, which are not covered by the general country-independent documentation. For all other settings on account determination please refer to the country-independent localization guide. This present documentation is based on SAP R/3 Release 4.6C. Differences in SAP Enterprise are documented if already known at the time of writing this. Wherever possible we refer to other information like country documentation and SAP Notes, which are constantly updated. The French country documentation is available in the SAP Library under Cross-Application Components � Country Versions � Europe and Africa � France.



Additionally there is the French Localization Manual available, which describes the French specific developments. Access through SAP Service Marketplace alias Globalization � Country information � Country-Specific Documentation � France.

2.1.1 Organizational Units and Currency For information on this section, select the relevant items in the substructure.

2.1.1.1 Maintaining Currency Settings

Use All French organizational units are using currency Euro (EUR). The following organizational units need a setting for the currency: Company Credit Control Area Company Code Financial Management Area Controlling Area Operating Concern Sales Organization Release Strategy Maintenance parameters (client) Default values for Work Breakdown Structure Network defaults Company Code-dependent Release Data

Prerequisites The necessary organizational units are defined and created.


IMG Menu

Company

Credit Control Area

Company Code

Financial Management Area

Controlling Area

Operating Concern

Sales Organization

Enterprise Structure – Definition - Financial Accounting – Define Company Define Credit Control Area Define Company Code – Edit Data Maintain financ. management area Controlling - Maintain Controlling Area Controlling – Profitability Analysis –Structures - Define Operating Concern – Maintain Operating Concern Enterprise Structure - Definition - Sales and Distribution - Define, copy, delete, check sales organization – Define Sales Organization Materials Management - Purchasing - Purchase Requisition - Release Procedure - Set up Procedure – Determination of Release Strategy Plant Maintenance and Customer Service - Master Data – Basic Settings – Define Currency for Maintenance Statistics



Release Strategy

Maintenance parameters (client)

Default values for Work Breakdown Structure

Network defaults

Company Code-Dependent Release Data

Project System - Structures - Operative Structures - Work Breakdown Structure – Create Project Profile Project System - Structures - Operative Structures – Network - Settings for Network - Maintain network profile Financial Accounting - General Ledger Accounting - Bus. Transactions - Carry out and Check Settings for document parking - create workflow variant for document parking

Transaction code -


Table / Field name

Description Currency Comment

T880 Company EUR

FM01 Financial Management Area

EUR

T001 Company Code EUR

T014 Credit Control Area EUR

TKA01 Controlling Area EUR

TKEBL Operating concern EUR

TVKO Sales Organization EUR

T161I Release Strategy EUR

T399J Maintenance parameters (client)

EUR


EUR

TCN41 Network Defaults EUR

VBWF01 Company Code-dependent Release Data

EUR

2.1.1.2 Maintaining Company Code – Defining Global Parameters

Use Definition of company code





Transaction code OBY6

2. On the Display structure screen, enter the necessary data.

Field name


T001- LAND1

Country key R FR

T001-WAERS

Currency Key R EUR

T001-SPRAS

Language key R FR

T001-KTOPL

Chart of accounts R CAFR

T001- STCEG

VAT registration number O FR_ _ _ _ _ _ _ _ _ _ _

T001-BUVAR

Document entry screen variant

R 2 Maintained by CI

T001- XEINK

Purchase Account Processing

R X (Checked) Maintained by CI

T001-XMWSN

Base amount for tax is net of discount

R Blank Maintained by CI

T001- XSKFN

Discount base amount is the net value

R Blank Maintained by CI

2.1.2 Chart of Accounts For information on this section, select the relevant items in the substructure.

2.1.2.1 Maintaining Chart of Accounts List

Use Definition of the CoA (frame) for France


IMG Menu path Fin. Accounting � General Ledger Acc. � GL acc./Master Records � Preparation � Edit CoA List


2. On the List of CoA - Details screen, enter the necessary data.

Field name




T004-KTOPL

Chart of accounts R CAFR Maintain by Country Installer (CI)

T004-DSPRA

Language R French Maintain by CI

T004-SAKLN

Significant length of the G/L account number

R 6

2.1.2.2 Defining Financial Statement Versions

Use Definition of the Balance sheet and P&L structure

Prerequisites The CoA must be implemented.


IMG Menu path Fin. Accounting � General Ledger Accounting � Business Transactions � Closing � Documenting

Transaction code SPRO

2. On the Fin. Stat. Versions screen, enter the necessary data.

Field name


T011-VERSN

Financial Statement Version

R BAFR Maintain by CI

T011-DSPRA

Language R F Maintain by CI

T011-KTOPL

CoA R CAFR

Result The Financial Statement Items can now be maintained manually (Customizing access available by this transaction code).

2.1.3 Sales Tax Calculation For information on this section, select the relevant items in the substructure.



2.1.3.1 Assigning Country to Calculation Procedure

Use In this activity, you enter the key for the calculation procedure, which determines the conditions which are allowed per document and which defines the sequence of the conditions in the document for each country.

Prerequisites Each calculation procedure which you enter must contain the necessary specifications for calculating and posting the taxes on sales/purchases.


IMG Menu path Financial Accounting � Financial Accounting Global Settings � Tax on Sales/Purchases � Basic Settings � Assign Country to Calculation Procedure


2. On the Overview screen, enter the necessary data.

Field name


T005-KALSM

Procedure R TAXF For country: FR

2.1.3.2 Defining Tax Codes

Use The tax code represents a tax category, which must be taken into consideration when making a tax return to the tax authorities. Tax codes are unique per country. The tax rate calculation rules and further features are stored in a table for each tax code.


IMG Menu path Financial Accounting � Financial Accounting Global Settings � Tax on Sales/Purchases � Calculation � Define Tax Codes for Sales and Purchases

Transaction code FTXP

2. On the Tax code screen, enter the necessary data.

Field name


T007A-MWSKZ

No Output VAT Exempt output VAT Output VAT 18,6% Output VAT 20,6% Output VAT 19,6% Output VAT (Incoming Payment) 18,6% Output VAT (Incoming Payment) 20,6%

R A0 A1 A3 A4 A5 B3 B4

Target tax code A3 Target tax code A4



Output VAT (Incoming Payment) 19,6% VAT 18,6% CE VAT 20,6% CE VAT 19,6% CE Export to CE No Input VAT of Assets Input VAT of Assets 18,6% Input VAT of Assets 20,6% Input VAT of Assets 19,6% Input VAT of Assets 18,6% (Incoming payment) Input VAT of Assets 20,6% (Incoming payment) Input VAT of Assets 19,6% (Incoming payment) No Input VAT Exempt Input VAT Input VAT 18,6% Input VAT 20,6% Input VAT 19,6% Input VAT 18,6% (50%) Input VAT 20,6% (50%) Input VAT 18,6% (Incoming Payment) Input VAT 20,6% (Incoming Payment) Input VAT 19,6% (Incoming Payment)

B5 E3 E4 .E5 E6 I0 I3 I4 I5 J3 J4 J5 V0 V1 V3 V4 V5 V8 V9 W3 W4 W5

Target tax code A5 Target tax code I3 Target tax code I4 Target tax code I5 Target tax code V3 Target tax code V4 Target tax code V5

2.1.3.3 Assigning Company Code for Non-Taxable Transactions

Use In this activity you define an incoming and outgoing tax code for each company code, to be used for posting non-taxable transactions to tax-relevant accounts. Transactions posted like this are, for example: goods issue delivery, goods movement, goods receipt purchase order, goods receipt production order, order accounting.


IMG Menu path Financial Accounting � Financial Accounting Global Settings � Tax on sales/purchases � Posting � Assign Co. Code for non-taxable transactions

Transaction code OBCL

2. On the Allocate Co. Code for non-taxable transactions screen, enter the necessary data.

Field name




T001- MWSKV

Input tax Code R V0

T001- MWSKA

Output tax Code R A0

2.1.4 Sales Tax Reporting For information on this section, select the relevant items in the substructure.

2.1.4.1 Defining Automatic Tax Payable Transfer Posting

Use Program RFUMSV00 can, if required, create a batch input session for the automatic transfer of the tax payable. Before the batch input functions can be used, you must assign an individual tax payable account to the transaction key "UMS " in the chart of accounts used. The tax balances are transferred to this account as long as you do not enter a different account on the report selection screen.

In this activity, you enter the number of the tax payable account and the posting keys for the debit and credit postings to this account for the chart of accounts used.


IMG Menu path Fin. Accounting � General Ledger Acc. � Business Transactions � Closing � Reporting � Sales-Purchases Tax returns


2. On the Automatic posting screen, enter the necessary data.

Field name


Chart of Accounts R CAFR T030-KONTS

Account Determination for transaction “UMS”

O 445510

2.1.5 Financial Reporting – Legal Requirements For information on this section, select the relevant items in the substructure.



2.1.5.1 Specifying G/L Account for Balance Carried Forward

Use You assign a retained earnings account to each P&L account by specifying a P&L statement account type in the chart of accounts area of each P&L account. At the end of a fiscal year, the system carries forward the balance of the P&L account to the retained earnings account. You can define one or more P&L statement account types per chart of accounts and assign them to retained earnings accounts.


IMG Menu path Financial Accounting � General Ledger Acc. � Business Transactions � Closing � Carrying Forward � Define Retained Earnings Account


2. On the Automatic posting screen necessary data.

Field name


Chart of Accounts R CAFR T030- KONTS

Account Determination for transaction “BIL”

O 120000

2.1.5.2 Defining Adjustment Accounts for Investments

Use In this step you define the numbers of the accounts needed for adjustment posting in the case of capital investments on the debit side and capital investments on the credit side. Postings are made to these accounts for the sorted list of the open items. Listing the open items is necessary to enable the display of receivables and payables according to the legal requirements for financial statements.


IMG Menu path Financial Accounting � Accounts Receivable and Accounts Payable � Business Transactions � Closing � Regroup � Define Adjustment Accounts for Investments

Transaction code OBBX

2. On the Automatic postings screen, enter the necessary data.

Field name


Chart of Accounts R CAFR

T030R- KTOSL

Transaction key R INH

T030U- HKONT

Reconciliation O 401XXX



T030U- KORRK

Adjustment Account O 401XXX

T030U- ZIELK

Target Account O 404XXX

2.1.6 Financial Reporting – Other Requirements For information on this section, select the relevant items in the substructure.

2.1.6.1 Defining Reasons for Reversal Posting

Use In this activity you define the reasons for making a reverse posting or reversal. The reason for reversal is displayed in the reversed document. It also controls:

• Whether an alternative posting date is allowed • Whether a reversal document comprises negative postings.

Find here the “delta” customizing to standard concerning reason for reversal posting.


IMG Menu path Fin. Accounting � General Ledger Acc. � Business Transactions � Adjustment Posting/Reversal �Define Reasons for Reversal


2. On the Reasons for reverse posting screen, enter the necessary data.

Field name


T041C-STGRD

Reason for reversal posting

R “05” Accrual/deferral posting

T041C-XNEGP

Negative posting R Blank

T041C-XABWD

Alternative posting date allowed

R X (Checked)

2.1.7 Payments For information on this section, select the relevant items in the substructure.



2.1.7.1 Defining Accounts for Exchange Rate Difference Postings

Use In this activity you define the numbers of the accounts to which you want the system to automatically post exchange rate differences when valuating open items and foreign currency balances. You can also define the accounts for realized exchange rate differences during open item clearing.


IMG Menu path Financial Accounting � General Ledger Acc. � Business Transactions � Closing � Valuate � Foreign Currency Valuation � Automatic Posting for FX-Valuation

Transaction code OBA1

2. For the transaction KDB “Exch.rate diff. in forgn.curr.balances”, enter the necessary data.

Field name


Chart of Account R CAFR T030S- KSOLL

Expense account R 666000

T030S- KHABN

E/R gain account R 766000

3. For the transaction KDF “Exchange rate difference in open items”, enter the necessary data.

Field name


Chart of Account R CAFR T030H-LSREA

Loss account R 666000

T030H-LHREA

Gain account R 766000

T030H-LSBEW

Account for Loss from Valuation

R 476000

T030H-LHBEW

Account for Gain from Valuation

R 477000

2.1.7.2 Maintaining Terms of Payment

Use In this step, you can define rules with which the system can determine the required terms of payment automatically. The rules are stored under a four-character key. You assign the terms of payment specified to the vendors in the master record via the key. The key and the terms determined with it are proposed when entering a document to the vendor account. You can specify a key in the master data area for Financial Accounting and Sales + Distribution. You should use the same key.



You can use the same key for the terms of payment for both customers and vendors who have the same payment terms. SAP recommends, however, that you use different terms of payment keys for customers and vendors and limit the permitted account type correspondingly within the terms of payment. This, for example, then has an advantage if the sales department of your company changes a payment term for a customer. You can then adapt the accompanying customer terms of payment key without vendors being affected by the same terms of payment. The most common terms of payment have already been set in the standard system. These include specifications on the payment conditions, for example the day limit or the payment period baseline date.

Find here additional terms of payment for France.


IMG Menu path Financial Accounting � Accounts Receivable Accounts Payable � Business Transaction � Incoming Invoices-Credit Memo � Maintain Terms of Payment or … …/Business Transaction � Outgoing Invoices-Credit Memo � Maintain Terms of Payment


2. On the Terms of payment overview screen, enter the necessary data.

Field name


T0552-ZTERM

Name definition is free, example: 3000 30FM 3010 6000 60FM 6010 9000 90FM 9010

O 30 days 30 days end of month 30 days e. of m. the 10th 60 days 60 days end of month 60 days e. of m the 10th 90 days 90 days end of month 90 days e. of m. the 10th

2.1.7.3 Defining Accounts for Cash Discount Received

Use In this step, you define the account numbers of your cash discount received accounts. The system posts the cash discount amount to these accounts when clearing open items.


IMG Menu path Financial Accounting � Accounts Receivable Accounts Payable � Business Transaction � Outgoing Payment � O. P. Global settings � Define Accounts for Cash Discount Taken (Trans. SKE) ...� Incoming Payment � I.P. Global settings � Define Account for Cash Discount Granted (Trans. SKT)





Field name


Chart of Account R CAFR T030-KONTS

Account Determination for transaction “SKE”

O 765000

T030-KONTS

Account Determination for transaction “SKT”

O 665000

2.1.7.4 Defining Accounts for Bank Charges

Use In this step, you define the account numbers of your bank charges accounts. The system posts the charges amount you specify for a bank item when settling payment to these accounts.


IMG Menu path Financial Accounting � Accounts Receivable Accounts Payable/Business Transaction/Outgoing Payment/O. P. Global settings � Define Accounts for Bank Charges-Vendors (Trans. BSP) or…� Incoming Payment � I.P. Global Settings � Define Account for Bank Charges (Trans. BSP)



Field name



Account Determination for transaction “BSP”

O 627800



2.1.7.5 Defining Accounts for Overpayments / Underpayments

Use In this activity you define the numbers of revenue and expense accounts to which the system posts if the following requirements are fulfilled:

• There is a difference in payment. The difference can result from an underpayment or an overpayment.

• The difference is within the tolerance limits for an automatic adjustment posting.

• The difference cannot be posted via cash discount adjustments.

Prerequisites Specify the tolerances for customers. These tolerances are used for dealing with differences in payment and residual items, which can occur during payment settlement. Specify the tolerances under one or more tolerance groups. Allocate a tolerance group to each customer via the master record. If you want to work with uniform tolerances for all customers in a company code, create a tolerance group with the key "blank" in that company code. In this case, it will not be necessary to enter a tolerance group in the customer master record. You can also use the "blank" tolerance group if you want to more specifically control tolerances for certain customers than for others, for example. To achieve this, create tolerance group "0001" for the customers who should have restricted tolerances, and enter this group in their master records. This will cause all other customers to automatically have the "blank" tolerance group. Make sure that you can also define tolerances for your employees. During clearing, the lower limit from the specifications for the customer and for the group of employees will be valid.


IMG Menu path Financial Accounting � Accounts Receivable Accounts Payable � Business Transaction � Outgoing Payment � O. P. Global settings � Define Accounts for Overpayments- Underpayments (Trans. ZDI) or…� Incoming Payment � I.P. Global Settings � Define Account for Overpayments-Underpayments (Trans. ZDI)



Field name



Account Determination for transaction “ZDI”

O 665500



2.1.7.6 Defining Accounts for Down Payments Received

Use Down payment received from customers


IMG Menu path Financial Accounting � Accounts Receivable and Accounts Payable � Bus. Transactions � Down Payment Received � Define Reconciliation Accounts for Customer Down Payments

Transaction code OBXR

2. On the Maintain Special GL Account screen, enter the necessary data. For A - Down payment

Field name


T074-UMSKZ

Special G/L Indicator R A

T074-KOART

Account type R D

Chart of Account R CAFR T074-HKONT

Reconciliation account 411xxx

T074-SKONT

Special GL Account 419xxx

R074-BSCHS

Debit posting key 09

R074-BSCHH

Credit posting key 19

2.1.7.7 Defining Accounts for Down Payments Made

Use Definition of an account in which the vendor down payments are managed in the general ledger. The down payment posting is then automatically made to this account instead of to the normal payables account (reconciliation account).


IMG Menu path Financial Accounting � Accounts Receivable and Accounts Payable � Bus. Transactions � Down Payment Made � Define Alternative Reconciliation Accounts for Down Payments

Transaction code OBYR

2. On the Maintain Special GL Account screen, enter the necessary data. For A - Down payment on current assets

Field name


T074- Special G/L Indicator R A



UMSKZ T074-KOART

Account type R K



T074-SKONT


R074-BSCHS


R074-BSCHH


3. On the Maintain Special GL Account screen, enter the necessary data. For I - Intangible asset down payment

Field name


T074-UMSKZ

Special G/L Indicator R I

T074-KOART

Account type R K



T074-SKONT


R074-BSCHS


R074-BSCHH


4. On the Maintain Special GL Account screen, enter the necessary data. For M - Tangible asset down payment

Field name


T074-UMSKZ

Special G/L Indicator R M

T074-KOART

Account type R K



T074-SKONT


R074-BSCHS


R074-BSCHH


2.1.7.8 Specifying Bill of Exchange Posting

Use Here you specify the settings for the following bill of exchange types:



• Bill of exchange receivable

Define the accounts in which bill of exchange payments are recorded in the general ledger. When you post bills of exchange, the system will post the entries to these accounts instead of the normal receivables account (reconciliation account). Thus it is possible to keep bills of exchange separate from the normal receivables. A transfer posting for balance sheet purposes is no longer necessary.

• Bill of exchange payable

In the following step you make specifications which are necessary for posting bills of exchange. If you wish to post and create bills of exchange with the payment program, you have to carry out further steps when you configure the payment program. In this case, you define an account in which the bill of exchange payments are managed in the general ledger. In the case of bill of exchange payments, the posting is automatically made to this account instead of the normal payables account (reconciliation account).


IMG Menu path Financial Accounting � Bank Accounting � Bill of Exchange transactions � B/E receivable � Define Alternative recon. Account for B/E receivable or …� Bill of Exchange transactions � B/E payable � Define Alternative recon. Account for B/E payable

Transaction code OBYN or OBYM

2. On the Maintain Special GL Account screen, enter the necessary data. For R - B/e payment request (B/E Receivable)

Field name


T074-UMSKZ

Special G/L Indicator R R

T074-KOART

Account type R D


Reconciliation account O 411xxx

T074-SKONT

Special GL Account O 413999

R074-BSCHS

Debit posting key R 09

R074-BSCHH

Credit posting key R 19

T074U- ZUMKZ

Target Sp. Ledger ind. R W

3. On the Maintain Special GL Account screen, enter the necessary data. For W - Bill of exch. (bankable) - (B/E Receivable)

Field name


T074-UMSKZ

Special G/L Indicator R W

T074-KOART

Account type R D



T074-SKONT


R074- Debit posting key R 09



BSCHS R074-BSCHH


T074U- ZUMKZ

Target Sp. Ledger ind. R Blank

4. On the Maintain Special GL Account screen, enter the necessary data. For W - Bill of exch. (bankable) - (B/E Payable)

Field name


T074-UMSKZ


T074-KOART

Account type R K



T074-SKONT


R074-BSCHS


R074-BSCHH


T074U- ZUMKZ


2.1.7.9 Specifying Payment Methods

Use Specifications for the paying company codes:

• Data for controlling the payment program

Here you specify for example the minimum amount for which an incoming or outgoing payment is created. You can define additional amount limits for the payment method. To do so, choose the activity Set Up Payment Methods per Company Code for Payment Transactions.

• Specifications for paying with bills of exchange

You can show or hide the settings for paying with bills of exchange.

• Forms and sender details for advice notes and EDI accompanying sheets

If you wish to print payment advice notes or an EDI accompanying sheet, specify the form name. Specify also the SAPscript text modules that contain details about the sender that are to be printed on the payment advice note. You can go directly from this transaction to the transaction for editing forms and text modules.


IMG Menu path Financial Accounting � Accounts Receivable and Accounts Payable � Bus. Transactions � Automatic Outgoing or Incoming Payment � Payment Method � Bank Selection for Payment program


2. On the Paying company code screen, enter the necessary data.



Field name


T042B- AFORN

Form for the payment advice

O F110_FR_AVIS

T042B- EFORN

EDI Accompanying Sheet Name

O F110_EDI_01

3. On the Payment method for Company code screen, enter the necessary data. For Payment method “1 – B/E Pay. Req.(Traite à l'acceptation)” (T042E- ZLSCH)

Field name


T042ZL- XEINZ

Indicator for Incoming Payment

R Checked

T042ZL- XWANF

B/E Paym. Req. R Checked

T042ZL- UMSKZ

Sp. G/L indicator R “R”

T042ZL- PROGN

Program for Form printout R RFFOD__S

T042E- ZFORN

Form Name R F110_FR_CLT_EAR

4. On the Payment method for Company code screen, enter the necessary data. For Payment method “2 – B/E Received (Billet à ordre (reçu))” (T042E- ZLSCH)

Field name


T042ZL- XEINZ


R Checked

T042ZL- XWECH

Create B/E posting R Checked

T042ZL- UMSKZ

Sp. G/L indicator R “W”

T042ZL- PROGN


5. On the Payment method for Company code screen, enter the necessary data. For Payment method “3 – B/E Payment received (Paiement sur relevé)” (T042E- ZLSCH)

Field name


T042ZL- XEINZ


R Checked

T042ZL- XWANF

B/E Pay. Req. R Checked

T042ZL- UMSKZ

Sp. G/L indicator R “R”

T042ZL- PROGN


T042E- ZFORN

Form Name R F110_FR_CLT_RELE

6. On the Payment method for Company code screen, enter the necessary data. For Payment method “C – Check (Chèque)” (T042E- ZLSCH)

Field name


Indicator for Outgoing Payment

R Checked

T042ZL-XSCHK

Check R Checked

T042ZL- Sp. G/L indicator R “ ” (Blank)



UMSKZ T042ZL- PROGN

Program for Form printout R RFFOUS_C

T042E- ZFORN

Form Name R F110_FR_CHEQUE

7. On the Payment method for Company code screen, enter the necessary data. For Payment method “E – B/E Send (Billet à ordre (émi))” (T042E- ZLSCH)

Field name



R Checked

T042ZL- XWECH

Create a B/E posting R Checked

T042ZL- UMSKZ

Sp. G/L indicator R “W”

T042ZL- PROGN


T042E- ZFORN

Form Name R F110_FR_FRN_BOR

8. On the Payment method for Company code screen, enter the necessary data. For Payment method “T – Bank transfer International (Virement bancaire étranger)” (T042E- ZLSCH)

Field name



R Checked

T042ZL- Bank Transfer R Checked T042ZL- UMSKZ

Sp. G/L indicator R “ ” (Blank)

T042ZL- PROGN

Program for Form printout R RFFOF__T

T042E- ZFORN

Form Name R F110_FR_VIREMENT

9. On the Payment method for Company code screen, enter the necessary data. For Payment method “V – Bank transfer domestic (Virement bancaire domestique)” (T042E- ZLSCH)

Field name



R Checked

T042ZL- Bank Transfer R Checked T042ZL- UMSKZ

Sp. G/L indicator R “ ” (Blank)

T042ZL- PROGN

Program for Form printout R RFFOF__V

T042E- ZFORN

Form Name R F110_FR_VIREMENT

T042E-XFWAE

Foreign currency R “ “ (Blank)



2.1.8 Correspondence – Dunning For information on this section, select the relevant items in the substructure.

2.1.8.1 Defining Dunning Procedure

Use Specifying a public holiday calendar key is the only way to ensure that the overdue items are not paid on a weekend or public holiday. The payment date is printed in field 'F150D-ZIELD' of the dunning notice and is arrived at by adding any payment period granted to the issue date of the dunning run.

Prerequisites The calendar must have first been created via the menu path Tools � Business engineering � Customizing � Implement. projects � SAP Reference IMG � Global settings � Maintain calendar.


IMG Menu path Financial Accounting � Accounts Receivable and Accounts Payable � Bus. Transactions � Dunning �- Dunning Procedure � Define Dunning Procedures

Transaction code FBMP

2. On the Dunning procedure: Overview screen, enter the necessary data.

Field name


T047A-KALID

Public holiday calendar ID R FR

2.1.8.2 Specifying Dunning Forms

Use In this activity you specify the forms you want to use for the standard dunning procedure and the legal dunning proceedings per dunning procedure, company code, and account type.

Prerequisites The dunning procedure must be configured. The layout of the form is defined in the SAPscript word processing tool using the key specified here.


IMG Menu path Financial Accounting � Accounts Receivable and Accounts Payable � Bus. Transactions � Dunning � Printout � Assign Dunning Forms




2. On the Dunning procedure: Forms screen, enter the necessary data.

Field name


T047E-FORNR

Form O F150_FR_DUNN_01 For Dunning Level (T047E-MAHNS) “1” & “2”

T047E-FORNR

Form O F150_DUNN_02 For Dunning Level (T047E-MAHNS) “3” & “4”

2.1.9 Fixed Assets For information on this section, select the relevant items in the substructure.

2.1.9.1 Checking Country-Specific Settings

Use Some of the system settings in the FI-AA system are subject to different laws and guidelines in different countries. SAP provides these settings, for the most part, already preconfigured. However, SAP cannot take responsibility for their completeness. The system uses the country-specific data in each company code that agrees with the country in the definition of the FI company code (FI Customizing). All country-specific system settings are dependent on the company code. The system assigns the settings you make in this step to the company code (one time only!) as soon as you initially assign a chart of depreciation to the company code.

Prerequisites You must have defined your company codes in Customizing for the FI system, and assigned countries to them.


IMG Menu path Financial Accounting � Asset Accounting � Organizational Structures � Check Country Specific Settings

Transaction code OA08

2. On the Asset Accounting: Country information screen, enter the necessary data.

Field name


T005A-LAND1

Country key R FR (France)

T005A-KZRBWB

Indicator post net book value for retirement

R X (Checked)



2.1.9.2 Assigning Chart of Depreciation to Company Code

Prerequisites Copy the delivery Chart of Depreciation for France on your own (TA-code EC08).


IMG Menu path Financial Accounting � Asset Accounting � Organizational Structures � Assign Chart of Depreciation to Company Code

Transaction code OAOB

2. On the Maintain company code in Asset Accounting screen, enter the necessary data.

Field name


T093C-AFAPL

Chart of depreciation (CoD) for asset valuation

R Put in here your copy of the French CoD Id

2.2 GB - Localization Guide United Kingdom

Purpose This document should help to localize an existing SAP solution according to the typical requirements of a British company. Therefore it lists the most important customizing activities where the settings are likely to be different from other countries, and gives hints and proposals for these settings. The description also covers the settings made by the country installation program. Account determination settings are only described if there are specific functionalities, which are not covered by the general country-independent documentation. For all other settings on account determination please refer to the country-independent localization guide. This present documentation is based on SAP R/3 Release 4.6C. Differences in SAP Enterprise are documented if already known at the time of writing this. Wherever possible we refer to other information like country documentation and SAP Notes, which are constantly updated. The British country documentation is available in the SAP Library under Cross-Application Components � Country Versions � Europe and Africa � United Kingdom.





Use All UK organizational units would normally use the currency pounds sterling (GBP). The following organizational units need a currency setting:

Company Credit Control Area Company Code Financial Management Area Controlling Area Operating Concern Sales Organization Release Strategy Maintenance parameters (client) Default values for Work Breakdown Structure Network defaults Company Code-dependent Release Data

Prerequisites Necessary organizational units are defined and created. Please note that the most important currency fields are filled by the country installer (where the comment Maintained by the CI is shown).


IMG Menu

Company

Credit Control Area

Company Code

Financial Management Area

Controlling Area

Operating Concern

Sales Organization

Release Strategy

Maintenance parameters (client)

Default values for standard networks and profiles

Default values for Work Breakdown Structure

Network defaults

Company Code-Dependent Release Data

Enterprise Structure – Definition - Financial Accounting – Define Company Define Credit Control Area Define Company Code – Edit Data Maintain financ. management area Controlling - Maintain Controlling Area Controlling – Profitability Analysis –Structures - Define Operating Concern – Maintain Operating Concern Enterprise Structure - Definition - Sales and Distribution - Define, copy, delete, check sales organization – Define Sales Organization Materials Management - Purchasing - Purchase Requisition - Release Procedure - Set up Procedure – Determination of Release Strategy Plant Maintenance and Customer Service - Master Data – Basic Settings – Define Currency for Maintenance Statistics Project System - Structures - Templates - Standard Network –General settings for standard and operative networks – Maintain standard network profile Project System - Structures - Operative Structures - Work Breakdown Structure – Create Project Profile Project System - Structures - Operative Structures – Network - Settings for Network - Maintain network profile Financial Accounting - General Ledger Accounting - Bus. Transactions - Carry out and Check Settings for document parking - create workflow variant for document parking

Transaction code -




Table / Field name

Description R./O./C Currency Comment

T880 Company R GBP Maintained by the CI

FM01 Financial Management Area

R GBP Maintained by the CI

T001 Company Code R GBP Maintained by the CI

T014 Credit Control Area


TKA01 Controlling Area R GBP Maintained by the CI

TKEBL Operating concern


TVKO Sales Organization


T161I Release Strategy


T399J Maintenance parameters (client)


TCA41 Default values for standard networks and profiles




TCN41 Network Defaults


VBWF01 Company Code-dependent Release Data


2.2.1.2 Company Code – Defining Global Parameters

Use Definition of company code





Field name Description R./O./C Value Comment

T001-LAND1 Country key R GB T001- Language key R EN



SPRAS T001-KTOPL Chart of accounts R INT See section 3 T001- STCEG

VAT registration number

R GBXXXXXXXXX See section 4.4. Although the UK VAT number is often printed with 2 gaps, eg GB 123 456789, it is recommended that the length of 11 is used instead of 13 for entry validation purposes.

T001-BUVAR

Document entry screen variant

R 2 The normal setting for the UK is 2 even if you do not use the withholding tax functionality

T001-WT_NEWWT

Indicator: Extended withholding tax active

C blank See section 5 about the use of this functionality

T001-XEINK Indicator: Purchase Account Processing is Active

O blank This functionality is not required in the UK.

T001-GSBE Business area fin.statements

O ? The project must check whether this setting is relevant for the company. Currently set to X by CI.

T001-XMWSN

Base amount for tax is net of discount

R X In the UK, the base amount for VAT calculation is after any offered prompt payment discount (see section 4). Maintained by CI.

T001- XSKFN

Discount base amount is the net value

R X In the UK there is no discount on the base amount including VAT. VAT is calculated after offered discount (see section 4). Maintained by CI.

The following is only necessary if you have to configure the system for the UK CIS Scheme (see section 4). If you are a contractor for CIS purposes and wish to provide files using EDI to the Inland Revenue, you should maintain the following parameters for the relevant company code(s) in the Additional company code details table: Using the Additional details button, go to the next screen and enter the necessary data.

Field name

Description R./O./C Value Comment

T001Z-WT_EDI

Withholding Tax EDI Referen.No

C XXXXXXXXXXXXX 13 character Tax Reference provided by Inland Revenue (overwrite the entry provided by the country-installer)

T001Z-WT_TAX

Withholding Tax Reference No.

C XXXX 4 character EDI ID provided by Inland Revenue (overwrite the entry provided by the



country-installer)


2.2.2.1 Maintaining Chart of Accounts List

Use As there is no prescribed chart of accounts in the UK, unlike France and Belgium, etc, the delivered chart of accounts for non-productive use of the software is called INT. It is supplied as a sort of international version so that people can start to acquaint themselves with pre-configured business processes. The country installer actually changes the company code G/L master records to a subset delivered for the country GB. The majority of customers will already have their own charts of accounts and will either use their current chart or take the opportunity, during the project, to revise the chart for group reporting purposes. As the general ledger is core to the integration in SAP, the delivered chart INT can be a useful guide to the configuration needed when implementing a customer’s chart of accounts.

Prerequisites Define new chart of accounts.


IMG Menu path Financial Accounting � General Ledger Accounting � G/L accounts � Master Records � Preparations � Edit Chart of Accounts List


2. On the Change View: “List of All Charts of Accounts” screen, enter the necessary data.

Field name


T004-KTOPL

Chart of accounts O INT or other value Enter here your chart of accounts.

T004-DSPRA

Maintenance language for the chart of accounts

R English

T004-SAKLN

Length of the G/L account number

R X Set here the length of your G/L accounts



2.2.2.2 Cost of Sales Accounting

Use In the preparation of the Profit and Loss account for external publication, a classification of expenses by function, such as manufacturing (cost of goods sold), distribution, research and development and administration, is employed to make a basic distinction between production and non-production activities. This is the most common approach in the United Kingdom because it recognizes a separation of production transactions from non-production transactions, and matches costs and expenses with related revenues. For example, the profit and loss account should provide a distinction between salary expenses associated with distribution activities vs. salary expenses associated with administrative activities. If you wish to report using the cost of sales method, then you should implement the Cost of Sales accounting functionality. This functionality uses functional areas to facilitate cost of sales reporting.

Profit and Loss Account - Presentation There are four permissible formats for the profit and loss account under schedule 4 of the Companies Act 1985. These are:. Layout Expenses classification Frequency of use 1. Vertical By function Most common in UK 2. Vertical By type Less common in UK 3. Separate columns for income & expenditure

By type Rare in the UK

4. Separate columns for income & expenditure

By type Rare in the UK

There follows the most common vertical profit and loss account statement format used by a UK company: Turnover Cost of sales

Gross profit or loss

Distribution costs Research and development expenses Administrative expenses Other operating income Income from shares in group undertakings Income from shares in participating interests Income from other fixed asset investments Other interest receivable and similar income

Amounts written off investments

Interest payable and similar charges Tax on profit or loss on ordinary activities Profit or loss on ordinary activities after taxation To produce a financial statement above, the system has to be capable of classifying expenses in categories, such as manufacturing, distribution, and administration.

Prerequisites You have defined the chart of accounts, the cost elements, the cost center categories and the internal order types.

Procedure To activate cost of sales accounting, please refer to the online documentation of the implementation guide. The starting point is IMG Menu path Financial Accounting � Financial Accounting Global Settings �

Company Code � Cost of Sales Accounting Transaction code




Use Definition of financial statement version for the UK company code. SAP delivers the financial statement version BAGB. This is based on the delivered Chart of Accounts called INT. The Financial statement items can be maintained manually, as a customizing access is available by transaction code FSE2. You can copy the financial statement version BAGB and adapt it the chart of accounts to be used for the productive company code.

Prerequisites Chart of accounts is defined.


IMG Menu path Financial Accounting � General Ledger Accounting � Business Transactions � Closing � Documenting � Define Financial Statement Versions


2. On the Change View: Financial Statement Versions screen, enter the necessary data.

Field name


T011-VERSN

Financial Statement Version

O XXXX Enter BAGB or your own defined F.S.Version

T011-DSPRA

Language key R EN

Please note that you cannot report the Cost of Sales functional area using a financial statement version and the report RFBILA00. This is despite the fact that functional areas can be assigned to a Financial Statement version. See SAP note 302385. You should use either the report writer tool or the drill down reporting tool. For the latter there are two example reports for the UK in transaction FSI0. The examples are under Report type 5, 0GB-BLNCE-01 - UK Balance sheet and 0GB-RESUL-01 - UK Profit and Loss account. These reports use the Financial Statement version BAGB (see the report parameters – general selections) as well as report painter forms 0GB-BLNCE-01 and 0GB-RESUL-01 for the basic rows and columns.

In R/3 Enterprise, the report RFBILA10 is delivered. This report can read data from different ledgers. This will simplify the reporting aspect.

2.2.3 Value Added Tax

Introduction As a global ERP system, Value Added Tax in SAP is called “Taxes on Sales/Purchases” in both the application menu and the SAP implementation guide. For example, the standard VAT report for the VAT return is called “Advance return for tax on Sales/Purchases” (RFUMSV00). SAP delivers standard settings for VAT. A tax procedure is linked to a country code. For the UK, tax procedure, TAXGB, is linked to country code GB. TAXGB contains the necessary condition types for European VAT calculation. Based on the country you create VAT codes that are used for sales, purchase and general ledger transaction processing.



2.2.3.1 Calculation – Defining Tax Codes

Assigning Country to Calculation Procedure

Use SAP delivers standard settings for VAT. A tax procedure is linked to a country code. For the UK, tax procedure, TAXGB, is linked to country code GB. TAXGB contains the necessary condition types for European VAT calculation. In this activity, you enter the key for the calculation procedure, which determines the conditions which are allowed per document and which defines the sequence of the conditions in the document for each country.


IMG Menu path Financial Accounting � Financial Accounting Global Settings � Tax on Sales/Purchases � Basic Settings � Assign Country to Calculation Procedure



Field name


T005-KALSM

Procedure R TAXGB For country: GB

In the appendix is a list of delivered tax codes relevant for the United Kingdom (according to SAP standard delivery release 46C). It is not a complete list as, for example, there are no codes for zero-rated input or output VAT. The reduced rate VAT code is currently 5% (and not 8% as delivered in 46C). In any SAP implementation, the delivered VAT codes should be checked against the customer’s requirements. Additional codes should be created using the copy function.

2.2.3.2 Assigning Company Code for Non-Taxable Transactions

Use In this activity you define an input and output tax code for each company code, to be used for posting non-taxable transactions to tax-relevant G/L accounts. Transactions posted like this are, for example: goods issue delivery, goods movement, goods receipt purchase order, goods receipt production order, order accounting.


IMG Menu path Financial Accounting � Financial Accounting Global Settings � Tax on sales/purchases � Posting � Assign Co. Code for non-taxable transactions





Field name


T001- MWSKV

Input tax Code R V0 Maintained by CI

T001- MWSKA

Output tax Code R A0 Maintained by CI

2.2.3.3 VAT Number Validation

Use At country level there are country-specific field checks. One of these covers the VAT registration number. Where known, SAP has coded country-specific validations for European VAT numbers. Although the UK VAT number is often printed with 2 gaps, e.g. GB 123 456789, it is recommended that the length of 11 is used instead of 13 for validation purposes.


IMG Menu path General Settings � Set countries � Set country-specific checks


2. On the Change view “Country Field Checks“ :Details screen for the GB entry, check the following data.


V_005_B_UINLN Length – VAT registration number

O. 11 (e.g. GB494703129)

V_005_B_PRUIN Checking rule –VAT registration number

O. 1 Maximum length check – no gaps

V)005_B_XPRSO Other data O. X This will switch on country-specific VAT number validation checking

Please note that UK government departments and UK Health Authorities have VAT numbers that do not satisfy the general modulus 97 rule. The Other data check must be deactivated if a customer trades with these business partners.

2.2.3.4 Foreign Currency Invoices and Domestic VAT

Use When purchasing in a foreign currency and the invoice has UK VAT on it, the sterling VAT amount must be posted to the input VAT account. A system conversion of the foreign currency amount is not permitted.



As the supplier has accounted for VAT in sterling at the rate of exchange when he invoiced his customer, the supplier will either state the exchange rate used on the invoice or it can be derived from the foreign currency and sterling total amounts. The customer must reclaim the same sterling amount and therefore it is important to enter the exchange rate used for the UK VAT on invoice entry.

Prerequisites The company code has been defined.


IMG Menu path Financial Accounting � Financial Accounting Global Settings � Tax on sales/purchases � Calculation � Change foreign currency translation

Transaction code

7. On the Change view: Foreign currency translation for tax items: Overview screen, enter the necessary data.

Field name


V_T001_V-BUKRS

Company code R Your company code

V_T001_V-BUTXT

Company name R Defaults

V_T001_V-TXKRS

Tx crcy tr R 1 Manual exchange rate entry possible

2.2.3.5 Defining Account for Exchange Rate Difference Posting

Use As the use of a different exchange rate for the VAT amount will create an exchange difference, an account is needed to post this difference.

Prerequisites The chart of accounts has been defined.


IMG Menu path Financial Accounting � Financial Accounting Global Settings � Tax on sales/purchases � Posting � Define account for exchange rate difference posting.

Transaction code OBYY

2. On the Maintain FI Configuration: Automatic Posting - Accounts screen, enter the necessary data for the internal processing key KDT .

Field name

Description R./O./C User action and values

Comment

T030-KONTS Debit R XXXXXX Enter the relevant G/L account

T030-KONTS Credit R XXXXXX Enter the relevant G/L



account

Result As result of the above configuration, the user can now enter an exchange rate used by the supplier to calculate the VAT amount in pounds sterling, and SAP will now post the same amount of VAT and, in addition, an exchange difference in local currency.

2.2.3.6 Value Added Tax Reporting

Use There is no UK country-specific report for Value Added Tax Reporting. The standard SAP report for VAT reporting is report RFUMSV00.

Procedure The report RFUMSV00 is found under Accounting � Financial Accounting � General ledger � Reporting � Tax reports � General � Advanced report for taxes on sales/purchases. The report provides the figures to complete the VAT100 form. As these forms are sent by HM Customs & Excise to UK companies and include a barcode, there is no form (preprinted or plain paper) printing option. UK specifics requirements to watch are:

To avoid penalties for incorrect VAT returns

• ensure that deliveries are billed in the same period; • ensure that input VAT is not reclaimed in the period before the tax point.

HM Customs & Excise require VAT to be accounted based on tax point date. The tax point date should be the posting date in SAP, so that VAT input and output totals can be agreed to the VAT accounts at the end of a period. In the UK, input VAT can be reclaimed as long as an invoice has been received by the company. It does not need to have been posted to the books of account. So if invoices are registered using the SAP document park functionality in SAP, the report RFPUMS00 is designed to pick up the VAT on these items and post the total. The total is reversed in the following period to net against the VAT posted on posting of the invoice.

EC Sales List The UK paper version of the EC Sales list (VAT 101form) can be created using the report RFALSM00. This report should be run with the form F_ASL_GB. At the time of writing there is no option to provide a UK file version but this is being developed by the UK VAT authority, HM Customs & Excise.

Intrastat Intrastat is the system for collecting statistics on the physical trade in goods (i.e. the actual movement of goods) between the Member States of the European Union (EC). It has been in operation since the beginning of the Single Market on 1 January 1993 and replaced customs declarations as the source of trade statistics within the EC. The requirements of Intrastat are similar in all Member States of the EC but the reporting differs. The country-specific report for the UK paper Intrastat return is RVEXPAIU. Plain paper submissions are no longer allowed but the report can be used to print values on the UK pre-printed form supplied by HMC&E. Other methods of submission are outlined on the HMC&E website: http://www.hmce.gov.uk/business/importing/intrastat/howto-sub.htm Starting with SAP Release 4.5B, the intrastat data can be sent via EDI or a diskette, using the EDI format INSTAT/CUSDEC (an EDIFACT standard). You would use the report RVEXCUGB. The transaction is VEI7. This program selects data from the VEIAV worklist in order to create the INTRASTAT declaration in the CUSDEC/INSTAT EDIFACT format for submission via diskette. The standard reports RMIMST00 (for arrivals) and RVEXST00 (for despatches) provide the data in the worklist VEIAV for the reports RVEXPAIU/ RVEXCUGB.



2.2.4 Withholding Tax In August 1999 a new construction industry scheme (CIS) was introduced by the Inland Revenue in the UK. Under the new scheme, the definition of the terms “subcontractor” and “contractor” are now wider than previously used. Contractors include not just construction companies and building firms but also Government departments and local authorities. Businesses which spend less than £1 million on construction work are not contractors and are not covered by the Scheme. Subcontractors are those businesses which carry out building work for contractors. For more information see the Inland Revenue booklet IR14/15(CIS) available from the local Tax Enquiry Office or on the internet at http://www.inlandrevenue.gov.uk/index.htm.

Some SAP customers will be “contractors” as defined by the Inland Revenue rules. Implementers need to ascertain whether this section is relevant. Otherwise it can be ignored.

In SAP, the Financial Accounting component (and the Accounts Payable component) contains withholding tax functionality. This functionality is designed to meet the needs of customers who need to determine, based on valid exemption certificates provided by a vendor, whether the vendor can be paid in full or whether a deduction (withholding tax) has to be made. (This functionality should not be confused with the use of the term “withholding tax” on interest payments as used in the treasury/banking world). With Release 4.0 of R/3, additional functionality was delivered to order to meet worldwide withholding tax requirements. This is the “Extended Withholding Tax” functionality. So, for example, the tax deduction can be made at time of invoice posting and it can now be used with Accounts Receivable. Although most of the “Extended Withholding Tax” functionality is not required for the UK scheme, it is the main functionality in this area and should be used with new installations to meet the requirements of the UK CIS scheme.

2.2.4.1 Withholding Tax - Configuration

Prerequisites Before you start the main configuration for extended withholding tax, please check the document entry screen variant for the relevant company code(s) (T001-BUVAR). See section Company Code – Defining Global Parameters in this guide. The setting has important implications for the sequence of screens in document entry. For new SAP implementations, the extended withholding tax should be used to meet the requirements of the UK CIS scheme. Before configuring this section, however, ensure that the extended WT is activated at company code level.


Menu Financial Accounting � Financial Accounting Global Settings � Company Code � Activate Extended Withholding Tax

Transaction code

2. On the screen Change View Enhanced withholding tax functions active: overview, enter the necessary data.

Field name Description R./O./C Values Comment

T001_EXT-BUKRS

Company Code R Enter your company code

T001_EXT- WT_NEWWT

Ext w/tax R X Not set by the CI



2.2.4.2 Extended Withholding Tax – Basic Settings

Use Please note that there are differences in terminology between the SAP system and the UK CIS scheme. A withholding tax certificate and the associated numbering in SAP is used for vendor payments in Argentina and NOT the UK. In the UK a “certificate”, as issued by the Inland Revenue, is the “exemption number” that is stored in the vendor master. The payments to UK subcontractors are reported either by file (EDI) or preprinted vouchers. This is covered in the section on Reporting.


IMG Menu

Financial Accounting � Financial Accounting Global Settings � Withholding tax � Extended Withholding Tax � Basic settings � Check Withholding tax countries


2. On the screen Change View Country codes for withholding tax: overview, enter the necessary data.

Field name Description R./O./C Values Comment T005Q_LAND1 Country Code R GB T005Q-QLTXT Text R United

Kingdom

The IMG activities “Defining reasons for exemption”, “Checking income type” and “Checking withholding tax country key” are not required in the UK. You can configure “Change message control for withholding tax” as you require.

2.2.4.3 Extended Withholding Tax - Calculation


IMG Menu path Financial Accounting � Financial Accounting Global Settings � Withholding tax � Extended Withholding Tax � Calculation � Withholding tax type � Define Withholding Tax Type for Payment Posting


IMG activity “Define Withholding Tax Type for Invoice Posting” is not relevant in the UK. Deductions are required at time of payment. ”Define Exchange Rate Type for Withholding Tax Type” is usually not relevant in UK as all invoices are in pounds sterling. The IMG activities “Define Rounding Rule for Withholding Tax Type” and “Assign Condition Type to Withholding Tax Type” are not relevant.

4. On the screen Change View Withholding tax type definition: posting at time of payment, check the delivered tax types and amend or add more if necessary.

The delivered withholding tax types are



04 CIS 4 Registration Card

05 CIS 5 Construction Tax Certificate

06 CIS 6 Subcontractors Tax Certificate

99 net with manual base amt (for use with temporary cards)


IMG Menu path Financial Accounting � Financial Accounting Global Settings � Withholding tax � Extended Withholding Tax � Calculation � Withholding tax codes � Define Withholding Tax Codes


Define Formulas for Calculating Withholding Tax is not relevant.

6. On the screen Change View Withholding tax code: Overview, check the delivered tax codes and amend or add more if necessary. Some customers like to define a code OS to allocate to invoices that may be “outside the scope” of the CIS scheme.

The last two IMG menu paths under “Calculation” are not relevant for the UK.

2.2.4.4 Extended Withholding Tax – Company Code

Use The following IMG activities are required for the UK. The country installer assigns 4 predefined types, 04.05,06 & 99. Flag the relevant company code(s).

Procedure 1 Access the transaction using:

IMG Menu

Financial Accounting � Financial Accounting Global Settings � Withholding tax � Extended Withholding Tax � Company code � Assign Withholding Tax Types to Company Code


2 Access the transaction using:

IMG Menu Financial Accounting � Financial Accounting Global Settings � Withholding tax � Extended Withholding Tax � Company code � Activate Extended Withholding Tax


2.2.4.5 Extended Withholding Tax - Postings


IMG Menu Financial Accounting � Financial Accounting Global Settings � Withholding tax � Extended Withholding Tax � Postings � Accounts for Withholding Tax � Define Accounts for Withholding Tax to be Paid



Over

Transaction SPRO

The IMG activities “Define Accts for W/hold.Tax for "Gross.Up" Offsetting Entry”, “Define Accounts for Self-Withholding Tax” and “Define Accounts for Withholding Tax Offsetting Entry” are not relevant for the UK.


IMG Menu Financial Accounting � Financial Accounting Global Settings � Withholding tax � Extended Withholding Tax � Postings � Generic withholding tax reporting

Transaction SPRO

See the section on Reporting in this guide. There are delivered report variants and output types for UK use.

2.2.4.6 Extended Withholding Tax – Vendor Master


Menu path Accounting � Financial Accounting � Accounts payable � Master Records � Create/change

Transaction FK01/FK02

2. On the <Withholding tax accounting> screen, enter the necessary data.


LFBW-WITHT With.type R. Enter applicable withholding tax type(s)

LFBW- WT_WITHCD

W/tax code R. Enter applicable withholding tax code(s)

LFBW-WT_SUBJCT

Liable R. X or space Flag if the business partner is subject for withholding tax

LFBW-WT_QSREC

Rec.type Blank Not used in the UK

LFBW-WT_EXNR

Exemption number R. Enter exemption certificate number

LFBW- WT_EXRT

Exem.% R. Enter Exemption rate

LFBW- WT_WTEXRS

Exmpt resn O. Enter Reason for exemption

LFBW-WT_EXDF

Exempt from R. Date on which exemption begins

LFBW-WT_EXDT

Exempt to R. Date on which exemption ends

During document entry the system will default the withholding tax code(s) into the invoice and the user must ensure that the correct base and exemption amounts are filled. On payment, the system will automatically determine, based on the valid exemption certificates, whether withholding tax deductions are necessary or not.



2.2.4.7 Withholding Tax Reporting

Use The generic withholding tax report RFIDYYWT should be used to meet the UK CIS reporting requirements. In R/3 46C this report replaces the country-specific report RFKQST90 which was available in earlier releases. The Inland Revenue has stipulated that monthly returns can be submitted, either using their own pre-printed (and pre-numbered) vouchers, or electronically via EDI. Contractors are not allowed to design or submit their own reports. Because contractors with many subcontractors will not want to manually complete the pre-numbered, report RFIDYYWT can create flat files for use with an EDI sub-system. It can also be used to print the values on the vouchers (on continuous stationery available from the Inland Revenue). If a customer (contractor) is to report using EDI then the contractor must register this interest first with the Inland Revenue.

CIS4 holders If a subcontractor has a CIS4 registration card, then a tax payment voucher CIS25 must be sent to the Inland Revenue. There are two methods: Paper CIS25 – this is a three part pre-printed voucher which can be either completed manually (CIS25M) or using an impact printer (CIS25I - with sprocket holes). The top copy goes to Inland Revenue, the second copy goes to the subcontractor and the contractor keeps the third copy. Electronic CIS25 – this is the same information but submitted using EDI. A paper copy is still required for the subcontractor and this is printed on a single copy paper voucher (not pre-numbered) (CIS25E).

CIS6 holders If a subcontractor has a CIS6 registration card, then a three-part gross payment voucher (CIS24) is provided by the subcontractor to the contractor. The subcontractor should complete it with details of payments received and the contractor must enter his reference number. The contractor sends the top copy to the Inland Revenue, the second copy to the subcontractor and keeps the third copy. No specific SAP report is provided here.

CIS5 holders If a subcontractor has a CIS5 registration card, then a gross payment voucher CIS23 must be sent to the Inland Revenue. There are two methods: Paper CIS23 – this is a two-part pre-printed voucher which can either be completed manually (CIS23M) or using an impact printer (CIS23I - with sprocket holes). Electronic CIS23 – this is the same information but submitted using EDI. A paper copy is not required for the CIS23. The report options in summary are: • CIS23E : Construction Gross Payment voucher : 1 flat file is created for the Inland Revenue. This

would be the input file to an EDI subsystem. • CIS23I : Construction Gross Payment Voucher : 2 part paper vouchers are printed : 1 for the Inland

Revenue, 1 for the company. • CIS25E : Tax Payment Vouchers : 1 flat file is created for the Inland Revenue and paper vouchers

are sent to the vendors (subcontractors). • CIS25I : Tax Payment Vouchers : 3 part paper vouchers are printed : 1 for the Inland Revenue, 1 for

the vendor, 1 for the company. • CIS36 : Contractor’s End of Year Return Form (paper) • CIS36E : Contractor’s End of Year Return by flat file for EDI submission

Prerequisites If you plan to use EDI, you will obtain a contractor EDI Identification and a contractor tax reference from the Inland Revenue. For the global company code parameters available for this data see section Company Code - Defining Global Parameters. You can also maintain these fields by clicking on “Proceed” in the relevant section of the report documentation.



Procedure The report RFIDYYWT is delivered with some predefined variants to meet most of the above requirements: • SAP&UK_CIS „Standard UK“ : This variant is used to display values on screen and for a printed list.

There is no file output or printing on vouchers. You can restrict the output to specific withholding tax codes to obtain output for manual voucher completion.

• SAP&UK_CIS23E „Standard for UK - CIS23E“ : This variant is to generate the flat file for CIS23E vouchers. No paper voucher is required.

• SAP&UK_CIS23I „Standard for UK - CIS23I“ : This variant is to print values on preprinted CIS23 paper vouchers.

• SAP&UK_CIS25E „Standard for UK - CIS25E“ : This variant is to generate the flat file for CIS23E vouchers. A paper voucher is also required.

• SAP&UK_CIS25I „Standard for UK - CIS25I“ : This variant is to print values on preprinted CIS25 paper vouchers.

• SAP&UK_CIS36E „Standard for UK - CIS36E“ : This variant is to generate the flat file for the CIS36E end of year return.

2.2.5 Financial Reporting – Legal Requirements In R/3 46C there are no country-specific reports delivered for the UK for legal reporting in Financial Accounting.

2.2.5.1 S16 TMA In R/3 Enterprise there is a reporting solution for S16 TMA requests using extended withholding tax codes and the Data Medium Exchange (DME) creation tool. Under the terms of Section 16 of the Taxes and Management Act, the Inland Revenue may require an SAP customer to file a return with a list of external service providers, to whom payments of over GBP 1,000 for a specific tax year have been made. Some service providers, such as utility companies, or those already covered by the construction industry scheme, are exempt. You are not required to withhold any tax on such payments. The Inland Revenue is only interested in the amounts of the payments themselves.

2.2.6 Customer/Vendor Master Data

Use There are no UK-specific vendor / customer master record fields. However, as already mentioned in Section “Withholding Tax” above, if you have to configure the system for the UK CIS scheme, there is a requirement, for certain subcontractors, ie vendors, to store and report their National Insurance number. As there is no specific field for the UK National Insurance number in Accounts Payable, it is recommended that you use the tax code field (LFA1-STCD2).


SAP Menu Financial Accounting � Accounts Payable/Receivable � Master Records � Create/Change



Transaction code FK01, FK02

4. On the <Control> screen, enter the necessary data.


LFA1-STCD2 Tax Code 2 R. AB123456C Use to store the National Insurance number of a vendor with a CIS4(P) registration card

5. Entries in the Withholding tax accounting screen have already been covered in the relevant section above.

2.2.7 Payments Supplier payments: The main payment methods in the UK are cheques and bank transfers. The use of EDI with UK banks is not common. Customer payments: As most corporate customer like to control their cash flow they tend to use cheques or bank transfers to make payments to suppliers. Generally a paper remittance advice is sent or faxed to advise the recipient of the invoices being paid. Cash matching is still very much a manual process. If there is sufficient information on the bank statement, cash matching can take place during the bank reconciliation process. In the UK direct debits are becoming more common when collecting regular variable or fixed payments from non-coporate bodies.

2.2.7.1 Configuration of Payment Methods

Use Payment methods are to be defined in the Financial Accounting configuration menu, where the following steps are to be carried out:

1. First of all, make all specifications that are required for a country-specific payment method.

2. Then define per company code the terms under which a payment method can be used.

All payment methods are displayed in the customer or vendor master record in the screen for selecting the payment method. Here you select the required payment method by marking it; the system transfers the payment methods to the customer/vendor master record.


IMG Menu path Financial Accounting � Accounts Receivable and Accounts Payable � Bus. Transactions � Automatic Outgoing Payments � Payment Method/Bank Selection for Payment Program


11. Using the path Set Up Paying Company Codes for Payment Transactions and for the paying company code enter the necessary data:

Field name


T042B- AFORN

Form for the payment advice

O F110_IN_AVIS



12. Using the path Set Up Payment Methods per Country for Payment Transactions check or amend the payment methods for country GB. There are four delivered payment methods and these are allocated to the company code 0001 by the country installer:

• C - Cheques

• D - Direct Debit

• E - BACS transfer

• V - International Clearing

2.2.7.2 Payment by Bank Transfer (BACS) This document will concentrate on the BACS transfer payment method. The organisation called BACS, which stands for Bankers' Automated Clearing Services, is a central data processing centre for UK payments. It assigns user numbers (BACS IDs) for companies that transmit transaction data. (For more information on BACS see www.bacs.co.uk ) The domestic bank transfer (BACS) for the UK is supported by program RFFOGB_T. The country-specific report RFFOGB_T creates payment media for domestic (non-AUDDIS) direct debits and supplier/employee direct credits (payments) in the UK. As SAP does not provide a BACSTEL telecommunications link to BACS, a customer must purchase a third party product or prepare a file that can be imported by a bank-specific PC application. See SAP note 13674 for details of suppliers. The report RFFOGB_T supports (for historical reasons) two third party formats which contain standard BACS transaction and contra records. The two formats are MicrogenTelesmart’s BACWAY format and Bottomline Technologies’ PT2000 format (formerly called BACSBOX). This does not mean that you have to work with these products as other companies can often convert payment files from SAP.

Please note there are separate formats for the Republic of Ireland (EFTS and EMTS).

The program supports the creation of daily files, multi-processing day files, multi-file (bureau) submissions, and the alternative user number functionality. For UK bank reconciliation purposes, an internal reference "SAPBACS" number is specified in field 9 (or I) of each contra data record. With this reference the payment document numbers can be found again for clearing (See section Bank Reconciliation). A payment advice note is not normally required when creating a BACS file. You would normally send your supplier a remittance advice during or after the running of the payment program.


IMG Menu path Financial Accounting � Accounts Receivable and Accounts Payable � Bus. Transactions � Automatic Outgoing Payments � Payment Method/Bank Selection for Payment Program � Set Up Payment Methods per Country for Payment Transactions


14. On the Change view Payment method/Country details screen, enter the necessary data For Payment method “E – BACS transfer” (T042E- ZLSCH)

Field name


Payment method for Outgoing Payments

R Checked

Payment method classification – bank transfer

R Checked

T042ZL- XZWHR

Allowed for Personnel Payments

O Checked Should be checked if UK



Payroll payments are made through BACS

T042ZL-XBKKT

Bank Details R Checked Payments by bank transfer must be able to find vendor bank details

T042ZL- PROGN

Payment medium program

R RFFOGB_T This report is used to create BACS payment files

Using the path Set Up Payment Methods per Company Code for Payment Transactions enter, for the relevant paying company code(s), the following data:

15. On the Payment method for Company code screen, enter the necessary data For Payment method “E – BACS transfer” (T042E- ZLSCH)

Field name Description R./O./C User action and values

Comment

T042E-VONBT Minimum Amount O Not normally set T042E -BISBT Maximum Amount R The payment method is

only selected by the payment program if the payment amount does not exceed the limit specified here.

T042E -XEIPO Single payment for marked item

O Leave blank It is common in the UK to pay a number of items due for a specific period

T042E -XZFAE Payment per due day O Flag this if you want to create BACS multi-processing day (MPD) files

See section

Fields for foreign payments/currencies

O Leave blank – BACS payments are usually only in GBP and for UK domestic payments only.

See SAP note 94720 on the use of the Euro for UK BACS files

T042E -KOPTI Bank selection – no optimisation

O Check this field as it is not common to optimise UK payments using these fields

For the payment method E – Bank transfer, you use the report RFFOGB_T to generate a BACS payment file. Before you do this, some more configuration is needed. If only one user number applies to all SAP company codes (one paying company code), only one table entry needs to be made. The fields "Company code" and "Bank number" both contain their initial value. You should enter the six- character user number in positions 5 - 10. Example: If the user number is "123456, you must enter "....123456" in the field "Bank user number". If each of the paying company codes have different user numbers, you must maintain these for each company code. The "Bank number" field retains its initial value. With different user numbers, a BACS multi-file is produced. Normally this is the bureau service. You only make an entry in the "Bank number" field if you are using multiple BACS user numbers within one paying company code; in this case you enter a key of your choice for each BACS number. When the data medium is generated, you must specify this "Alternative search key" for each number.

1. Maintain the BACS user number(s): Access the transaction using:



IMG Menu path Financial Accounting � Accounts Receivable and Payable � Business Transactions � Outgoing Payments � Automatic Outgoing Payments � Payment Media � Country-specific settings for payment media � Define User Number at Bank in Norway, United Kingdom, and Ireland


2. On the Change View “User Numbers at the Bank”: Overview screen, enter the necessary data. (table T042M)


Comment

T042M- BUKRS

Company code C Leave blank unless a bureau service is needed (see section “Other information …………”)

T042M-LAND1

Country R GB

T042M-BANKL

Bank number C Leave blank unless using alternative user numbers (see section “Other information …………”)

T042M-BNKID

User number R ….123456

T042M-PWDOW

Password C X Required for the BACWAY format

3. Each BACS file contains a number of standard payment records and one or more contra records. These records need transaction codes. The bank transaction codes to be used must be defined for each payment method. If there is only one user number for all SAP company codes, you can leave the "Bank number" field empty. Example: For the payment method "BACS transfer", you must specify that the recipient is paid with transaction code 99 (bank giro credit) and that the company account is debited (bank transaction code 17).

Please ensure you test this customizing thoroughly before creating real payment files to ensure payments contain the correct BACS transaction codes.

4. If you are using multiple BACS user numbers, enter the appropriate Alternative search key in the "Bank number" field. The codes are kept in Table T042N. To Check/Maintain the BACS transaction codes, access the transaction using:

IMG Menu path Financial Accounting � Accounts Receivable and Payable � Business Transactions � Outgoing Payments � Automatic Outgoing Payments � Payment Media � Country-specific settings for payment media � Define Bank Transaction Code for United Kingdom


5. On the Change View “User Numbers at the Bank”: Overview screen, enter the necessary data (table T042N).


Comment



T042N-LAND1

Country R GB

T042N-ZLSCH

Payment method R E

T042N-BANKL

Bank number C See above paragraph

T042N-BKTCP

Partner bank trans code R 99 Credit records need code 99

T042N-BKTCH

House bank trans code R 17 Debit records need code 17

2.2.7.3 Building Society Accounts

Procedure Although there has been a trend recently in the UK for Building Societies to convert to public companies and become banks in their own right, there are still building societies which use a clearing account with a major UK clearing bank. There is therefore an implication for payments to suppliers and employees who have their main bank account with a building society. If a vendor (or employee for the HR payroll) has a bank account with a UK building society, then BACS requires further information in the file: The building society “roll number” must be stored as well as the building society name. The roll number is stored in the vendor master field – Reference Details (LFBK-BKREF) or in the HR personnel master record (field P0009- PSKTO). See also SAP Note 119956.

6. The Building Society name is stored in Table T042R. Check the need for Building Society names: Access the transaction using:

IMG Menu path Financial Accounting � Bank Accounting � Bank Accounts � Enter name of Building Society

Transaction code

2. On the <Change View “Building Society”: Overview> screen, enter the necessary data. (table T042R)


Comment

T042R-LAND1

Country R GB

T042R-BANKL

Bank key R Vendor/Employee UK Bank Sort code

T042R-BANKN

Bank account R Vendor/Employee UK Bank Account number

T042R-BSNAM

Building Society R Building Society name



2.2.7.4 Other Information on Report RFFOGB_T Alternative user number : In addition to the general selection parameters on the selection screen of the payment medium program, the following format-specific parameter exists: “Alternative search key“. This is used to find and use a second BACS user number if more than one is used within one paying company code. (See SAP note 50286).

BACS multi-file submission – a submission from a bureau containing one or more files. Only a bureau may transmit multi-file submissions. A Bureau is an organisation making multi-file submissions on behalf of one or more users. It is identified by a 6 figure number, in the format of Bnnnnn (where n is number). The scenario is many paying company codes each with their own authorised BACS user number but submitted under the bureau number. (See SAP Note 50286).

BACS MPD files: An MPD file is a file containing payment records with different future BACS processing dates. The report RFFOGB_T will create multi-processing day files if the payment method is flagged for „Payment by due date“ (see 5. above).

SAP R/3 Enterprise: As of SAP R/3 Enterprise Core 4.70, you can create a BACS payment file using the Payment Medium Workbench (PMW). The relevant DMEE format tree is called GB_BACS. Please refer to the standard online documentation for more information. SAP will discontinue maintenance of the existing program, RFFOGB_T, and any changes required by BACS in the future will be made to the PMW format only.

2.2.7.5 Direct Debits The UK has moved to a more electronic and secure direct debit process. This process is known as AUDDIS. The previous paper based process is known as non-AUDDIS. The current SAP Standard solution in Accounts Receivable does not provide full support for the AUDDIS direct debit process.

Not all SAP customers need to use direct debit as it is commonly used in the insurance, utility and telecommunications industries, where regular payments are collected from personal bank accounts.

At the moment a project solution has to be implemented if the customer needs the full AUDDIS direct debit functionality.

2.2.7.6 Payment by Cheque

Procedure The payment method C in the GB country list is still a common form of payment in the UK. As a cheque is normally sent by post, the payment method should ensure that the vendor “Street or PO Box” is included in the master record.


IMG Menu path Financial Accounting � Accounts Receivable and Accounts Payable � Bus. Transactions � Automatic Outgoing Payments � Payment Method/Bank Selection for Payment Program � Set Up Payment Methods per Country for Payment Transactions

Transaction code

17. On the Change view Payment method/Country details screen, enter the necessary data For Payment method “C – Cheque” (T042E- ZLSCH)

Field name


Payment method for R Checked



Outgoing Payments T042ZL-XSCHK

Payment method classification –check

R Checked

T042ZL- XZWHR

Allowed for Personnel Payments

O Checked Should be checked if UK Payroll payments are made by cheque

T042ZL-XSTRA

Street, P.O. Box or P.O. Box pst code

R Checked Payments by cheque need key address data

T042ZL- PROGN

Payment medium program

R RFFOUS_C There is no UK specific report to print cheques. The standard report is this one.

2.2.7.7 Cheque Numbering Because of cheque fraud, there are now strict rules in the UK concerning the design and printing of cheques. Cheques must be printed by specialist printers. A MICR (Magnetic Ink character recognition) line is required so that machines can read what has been printed. It is recommended that the SAP system is not used to print more than the supplier name and cheque amount on the cheque. As the cheque number is usually required on the MICR line, if cheques without numbers are used, then the SAP system will need to print the cheque number and the relevant data on the MICR line. This may involve the use of specially approved printers. The use of cheques without numbers is possible (as is common in Germany) and the number SAP would use on the cheque would be the FI payment document number. This cheque number can then easily identify the payment document on the uncleared cheques account during the bank reconciliation process.

2.2.7.8 Prenumbered Cheques

Procedure To avoid issues with cheque number printing, a customer can use prenumbered cheques. For security reasons, cheques must be kept securely and the usage of each cheque maintained. It is then necessary to enter and maintain the cheque number ranges used using the SAP check lot functionality.

IMG Menu path Financial Accounting � Accounts Receivable and Payable � Business Transactions � Outgoing Payments � Automatic Outgoing Payments � Payment Media � Check Management � Define number ranges for checks

Transaction code FCHI

On the Check lots screen enter the Paying company code, House bank ID and Account ID to reach the Maintain check lots screen. As it is a standard audit requirement you must account properly for all cheques received. This includes unused cheques. You should define reason codes to link to individual cheque numbers. These will typically cover test prints, cheques lost in the post, torn, destroyed, etc.

IMG Menu path Financial Accounting � Accounts Receivable and Payable � � �



Business Transactions � Outgoing Payments � Automatic Outgoing Payments � Payment Media � Check Management � Define void reason codes

Transaction code FCHV

Use or extend the range of delivered void reason codes.

2.2.8 Bank Reconciliation

Use For use in the UK there is a report RFEBGB00 which exists to upload and process a bank transaction file in the UK APACS format. If however you work with a bank that can supply bank transaction files in other formats, for example BAI or SWIFT MT940, then please use the main report RFEBKA00. SAP offers a certification to banks if they can supply a file in a SWIFT MT940 format. This file would also be imported using RFEBKA00.

The report RFEBGB00 was first developed to clear paid cheques using bank specific magnetic tape files. More recently it is now common for customers to have a PC with access to their bank account details. These PCs can download bank transaction data in the formats offered by the bank.

At the time of writing the current UK supported bank formats are:

B036 36 letters in Barclays/Midland Bank check (ie cheque) records

BACS UK APACS (BACS) Inter Bank Standard (100/106 letters)

N028 National Westminster Bank Plc 28 letters standard service

R128 Royal Bank of Scotland Plc Royline Standard

RW96 Royal Bank of Scotland (Williams & Glyns) 96 letters

There are a number of points to bear in mind with bank reconciliation. The matching of transactions depends on the quality of the data provided. If the transaction codes and detail provided by the bank are insufficient or unclear then matching will be difficult. Some banks provide data in different file structures and this causes problems for standard software. Either the file needs to be edited before uploading or the SAP program needs adapting to the file structure provided by the bank. For security reasons, it is not always wise to remove headers and trailers. A bank statement comprises transactions that need to be posted in FI. It may also contain transactions that have been posted to bank interim (or clearing) accounts, which now need clearing (or matching) with a posting to the main G/L account. Cheque payments are matched based on cheque number as assigned by the cheque print program, RFFOUS_C. The cheque encashment date (field BANCD in Table PAYR) will be updated by the posting from the bank reconciliation. For BACS payments, the BACS file creation program RFFFOGB_T will create a contra record with a SAPBACS reference. This reference is stored within the SAP system. If this reference appears on the bank transaction record for the total amount paid, then the matching of the individual vendor payments (which make up the total) on the bank clearing account will occur using this SAPBACS reference.

Prerequisites A chart of accounts has been defined.


IMG Menu path Financial Accounting � Bank Accounting � Business Transactions � Payment transactions � Electronic Bank Statement � Make Global Settings for Electronic Bank Statement




Enter the chart of accounts in use.

There are then a further list of options, starting with account symbols. For information on these, please refer to the online documentation of the implementation guide. This document will mention some UK-specific points. They can also be found in the SAP note 48854.

There is one delivered transaction type for the UK, called GB-APACS. For this transaction type, there are a number of external transaction codes assigned to posting rules. These are 11, 17, 17 SAPBACS, 74 and 93. The external codes are based on the codes used by LloydsTSB when first developed and must be adapted when using another bank or if the codes have changed.

2. On the Change View “Assign external transaction types to posting rules”: Overview screen, enter the necessary data for the relevant transaction type. (Table T028G)

Field name


Comment

T028G-VGEXT

External business transaction

R These codes will depend on the bank

T028G-VOZPM

+/- of the incoming amount R + = cash inflow (CR on statement) - = cash outflow (DR on statement)

T028G-VGINT

Posting rule R These are user-defined

T028G-INTAG

Interpretation algorithm R These are pre-defined by SAP

T028G-DADET

Planning type, transaction O For use with cash management

T028G-PFORM

Processing type R These are pre-defined and important for the UK (see below)

Processing type The report RFEBGB00 uses processing types more than interpretation algorithms. After the dummy entry, the top 9 in the list are UK specific. They are listed here (description) with the associated numbers that are stored in the table

01 Clearing with check(cheque) 02 Closing balance 03 Opening balance 04 Clearing with allocation number 05 Bank transfer BACS, Bank collection BACS, customer cash inflow 06 Bank charges, interest, dividends 07 Total cash outflow per file 08 Total cash inflow per file 09 Refused transfer/ bank collection

But there is still an important link between some interpretation algorithms and the processing types. Below you see the main configuration to process two UK specific bank statement transactions, a paid prenumbered outgoing cheque and an outgoing BACS payment (also based on codes used by LloydsTSB).

To clear prenumbered outgoing cheque Define account symbols in T033I Eg, BANK to find the G/L account for the bank account statement being posted OUTGOING-CHEQUE to find the G/L account for the outgoing cheques account for the bank account.

Define posting rules in T028D



Eg GB11.

1. On the Change View “Define posting rules”: Overview screen, enter the necessary data for the defined posting rule (Table T033F)

Field name


Comment

T033F-EIGR1

Posting rule R. GB11 User defined (in Table T028D)

T033F-EIGR2

Posting area R. 1

T033F-BSCH1

Posting key C. Leave blank

T033F-SHBK1

Special G/L indicator C. Normally blank

T033F-KTOS1

Acct (debit) R. OUTGOING CHEQUE

Account symbol as defined in T033I

T033F-BSCH2

Posting key C. 50 Credit key for bank account posting

T033F-SHBK2


T033F-KTOS1

Acct (Credit) R. BANK Account symbol as defined in T033I

T033F- ATTR1

Document type R. Eg SB Document type per Table T003

T033F- ATTR2

Posting Type R. 4 As the system will do the matching on the outgoing cheques account, posting type 4 is required

2. On the Change View “Assign external transaction types to posting rules”: Overview screen, enter the necessary data for the relevant transaction type. (Table T028G)

Field name


Comment

T028G-VGEXT


R 11 Code as used by LloydsTSB

T028G-VOZPM

+/- of the incoming amount R - - = cash outflow (DR on statement)

T028G-VGINT

Posting rule R GB11

T028G-INTAG

Interpretation algorithm R 011 Outgoing check: check no diff. from pymt. document

T028G-PFORM

Processing type R 01 Clearing with check



To clear outgoing BACS payment Define account symbols in T033I E.g., BANK to find the G/L account for the bank account statement being posted OUTGOING-TRANSFER to find the G/L account for the outgoing BACS account for the bank account.

Define posting rules in T028D E.g. GB18

1. On the Change View “Define posting rules”: Overview screen, enter the necessary data for the defined posting rule (Table T033F)

Field name


Comment

T033F-EIGR1

Posting rule R. GB18 User defined (in Table T028D)

T033F-EIGR2

Posting area R. 1

T033F-BSCH1

Posting key C.

T033F-SHBK1


T033F-KTOS1

Acct (debit) R. OUTGOING TRANSFER

Account symbol as defined in T033I

T033F-BSCH2

Posting key C. 50 Credit key for bank account posting

T033F-SHBK2


T033F-KTOS1

Acct (Credit) R. BANK Account symbol as defined in T033I

T033F- ATTR1

Document type R. SB Document type per Table T003

T033F- ATTR2

Posting Type R. 4 As the system will do the matching on the outgoing BACS account, posting type 4 is required

2. On the Change View “Assign external transaction types to posting rules”: Overview screen enter the necessary data for the relevant transaction type. (Table T028G)

Field name


Comment

T028G-VGEXT


R 17 SAPBACS A BACS outgoing payment is external transaction 17 but to distinguish it from other statement debits the text SAPBACS should be used .

Code as used by LloydsTSB.

T028G- +/- of the incoming amount R - - = cash



VOZPM outflow (DR on statement)

T028G-VGINT

Posting rule R GB18

T028G-INTAG

Interpretation algorithm R 019 Reference No (DME management)

T028G-PFORM

Processing type R 05 Bank Transfer BACS,…..

Please note that, for BACS payment clearing, the above entry is needed in addition to the code “17” entry, e.g.:

Code Posting rule Int. Alg. Proc. type

17 GB17 001 5

17 SAPBACS GB17 019 5



Use The UK entry GB in transaction OA08 does not really influence the configuration for fixed assets. The country versions are more relevant for other countries, where there are legally defined amounts for low value assets and depreciation changeover rules.



IMG Menu Financial Accounting � Asset accounting � Organizational Structures � Check Country-Specific Settings


2. On the Change View Asset Accounting: Country information screen, enter the necessary data.

Field name


T005A-LANDX

Country key GB

T005A-WAERS

Currency GBP



2.2.9.2 Specifying Chart of Depreciation

Use The UK delivered sample chart of depreciation, 0GB, is a list of depreciation areas arranged according to business and legal requirements. This chart is unlikely to meet your business needs. You should copy the chart of depreciation, adapt it, and then assign it to your company code. The country installer will assign chart 1GB for use in company code 0001 but you need to create the chart by copying chart 0GB.


IMG Menu Financial Accounting � Asset accounting � Organizational Structures � Copy Reference Chart of Depreciation


2. Choose activity Copy Reference Chart of Depreciation.

3. Click on the icon Copy Org.object (F6) and when the dialog box appears, enter 0GB in field “From Chart of Depn.” and 1GB in field “To Chart of Depn”. Now execute and the reference chart of depreciation is copied.


Use Assign the relevant chart of depreciation (the sample 1GB or your copy) to your UK company code.

Prerequisites Define company code and chart of depreciation.


IMG Menu Financial Accounting � Asset Accounting � Organizational Structures � Assign Chart of Depreciation to Company Code


2. On the Copy/Delete Depreciation Areas screen, enter the necessary data.

Field name


T093C_00-BUKRS

Company Code XXXX Enter your company code

T093C_00-AFAPL

Chart of depreciation 1GB Maintained by the CI. Alter if you use another chart.



2.2.9.4 Sundry UK Asset Topics For information on this section, select the relevant items in the substructure.

2.2.9.4.1 Depreciation

Depreciation Types In the UK ordinary depreciation and unplanned depreciation are the most common depreciation types used. Special depreciation is not normally used as tax depreciation in the UK is not known. In the UK, the government allows capital allowances for capital expenditure against profit to determine taxable profits.

Depreciation Methods Unlike some European countries, the UK Companies Acts and Accounting Standards do not prescribe in great detail how to depreciate fixed assets. In most companies, straight line depreciation is sufficient (and the simplest to implement) but other methods are allowed.

Period control Here again UK GAAP does not prescribe in detail specific rules for period control. Tax rules do not influence the accounting rules. It is usual to depreciate assets in the month of acquisition and for depreciation to cease in the month of disposal.

2.2.9.4.2 Revaluation Although company accounts in the UK are prepared under the historical cost convention, it is possible to incorporate revaluations of fixed assets, in particular freehold and leasehold property, into the accounts. Revaluations should be kept up to date. So it may be necessary to allow revaluations in the book depreciation area. Alternatively the use of a separate depreciation area may be advantageous for reporting the difference between historical and revalued amounts. In the public sector there is often the requirement to revalue assets using indexation (modified historical cost convention). Here again a separate depreciation area is recommended to store indexed revaluations.

2.2.10 Purchasing There is no specific UK functionality in the Purchasing area. There is one topic to mention in this section and that is self-billing.

Self billing In the UK it is possible that some customers may want to self-bill. Self-billing is common with hauliers who own a weighbridge, or publishers and broadcasters who purchase material from freelances. The UK tax authority, HM Customs & Excise, requires customers to obtain approval from them for any self-billing arrangements with certain suppliers. In the R/3 system, self-billing is the functionality called Evaluated Receipt Settlement.



2.2.11 Sales There is no specific UK functionality in the Sales area. There are two topics to mention in this section, proof of delivery and foreign currency invoices for UK taxable supplies.

Proof of delivery Proof of delivery functionality was first introduced in SAP R/3 Release 4.0A. As this was often requested by UK customers using earlier releases, it is mentioned here for information. Please see the 40A release note (under Logistic Execution System) and the online documentation for more information.

Foreign currency invoices and domestic VAT In the unlikely event that UK customers make taxable supplies but invoice in a foreign currency, it is important to note that the UK tax authority, HM Customs & Excise, requires the conversion of all values for VAT purposes into sterling. This is primarily the the sterling equivalent of the VAT and the invoice total calculated using the correct rate of exchange for the day. HM Customs & Excise issue exchange rates weekly in their internet site.

There is no legal requirement to print the exchange rate used. This has an impact on the SAP invoice print routine in SD as the standard routine prints the amounts in order currency only. The Online Service Note 62158 explains how to print tax conditions in local currency, if the local currency and the document currency in the sales document are different.

2.2.12 Appendix

Tax codes Here is a list of tax codes relevant for the United Kingdom (according to the SAP standard delivery release 46C). It is not a complete list as, for example, there are no codes for zero-rated input or output VAT. The reduced rate VAT code is currently 5% and not 8%. In any SAP implementation, the delivered VAT codes should be checked against the customer’s requirements.

Field name

Description Values Comment

T007A-MWSKZ

Taxcode A0 Exempt from output VAT

A1 Standard rated output VAT: 17.5%

A3 Delivery of goods within EU

A4 Sevices within the EU

A5 Subcontracting within EU

V0 Exempt from input VAT

V1 Standard rated input VAT: 17.5%



V2 Standard rated, non-deductible VAT: 17.5%

V3 Delivery of goods within EC

V4 Sevices within the EU

V5 Subcontracting within EU

V6 Standard rated input VAT: 8%

V7 Input VAT: 17.5% - 50% non-deductible (allocated)

V8 Input VAT: 17,5% - 50% non-deductible (not alloc.)

2.3 IT-Localization Guide Italy

Purpose This document should help to localize an existing SAP solution according to the typical requirements of an Italian company. Therefore it lists the most important customizing activities where the settings are likely to be different from other countries, and gives hints and proposals for these settings. The description also covers the settings made by the country installation program. Account determination settings are only described if there are specific functionalities, which are not covered by the general country-independent documentation. For all other settings on account determination please refer to the country-independent localization guide. This present documentation is based on SAP R/3 Release 4.6C. Differences in SAP Enterprise are documented if already known at the time of writing this. Wherever possible we refer to other information like country documentation and SAP Notes, which are constantly updated. The Italian country documentation is available in the SAP Library under Cross-Application Components � Country Versions � Europe and Africa � Italy. Additionally there is the Italian Localization Manual available, which describes the Italian specific developments. Access through SAP Service Marketplace alias Globalization � Country information � Country-Specific Documentation � Italy.





Use All Italian organizational units are using currency Euro (EUR). In the country-independent guide you will find information on which organizational units need to be adapted and where you will find the settings.

2.3.1.2 Maintaining Company Code

Use Assign Italian specific settings to the company code.

Prerequisites Definition of company code in organizational units.


IMG Menu path Financial Accounting � Financial Accounting Global Settings - Company Code � Enter Global Parameters



Field name Description R./O./C Value Comment

T001-LAND1 Country key IT

T001-SPRAS Language key IT

T001-KTOPL Chart of accounts ?

T001- STCEG VAT registration number ITxxxxxxxx

T001-BUVAR Document entry screen variant

2

T001-WT_NEWWT

Indicator: Extended withholding tax active

X

T001-XEINK Indicator: Purchase Account Processing is Active

X

T001-XMWSN Base amount for tax is net of discount

Blank

T001- XSKFN Discount base amount is the net value

Blank




2.3.2.1 Maintaining Directory of Charts of Accounts

Use In this step you define the chart of accounts for the Italian company code. In the original delivery of SAP, the Italian company code is assigned to the general chart of accounts INT. Italian companies however usually use a chart of accounts which is adapted to the requirements of the secondo IV direttiva CEE (predefined balance sheet structure for Italy).

Prerequisites A new chart of accounts has to be defined. For details please refer to country-independent guide, section Chart of Accounts.


IMG Menu path Financial Accounting � General Ledger Accounting � GL Accounts � Master Records �Preparations � Edit Chart of Accounts List


2. On the <Change View: List of all Charts of Accounts: Overview> screen, enter the necessary data.


T004-KTOPL Chart of accounts INT or other value

T004-DSPRA Maintenance language for the chart of accounts

Italian


Use In the original delivery of SAP, the Italian company code IT01 is assigned to the general financial statement version of INT. Italian companies however use a financial statement version in accordance with the secondo IV direttiva CEE (predefined balance sheet structure for Italy). The Financial statement items could be maintained manually, a customizing access available by transaction code FSE2.

Prerequisites The chart of accounts is defined.




IMG Menu path Financial Accounting � General Ledger Acc. � Business Transactions � Closing � Documenting � Define Financial Statement Versions


2. On the <Change View Financial Statement Versions: Overview> screen, enter the necessary data.


T011-VERSN Financial Statement Version

INT or other value

T011-DSPRA Language key Italian

2.3.3 Sales Tax Calculation For information on this section, select the relevant items in the substructure.

2.3.3.1 Defining Non-Taxable Transactions

Use In this activity you define an incoming and outgoing tax code for the company code, to be used for posting non-taxable transactions to tax-relevant accounts. Transactions posted like this are, for example: goods issue delivery, goods movement, goods receipt purchase order, goods receipt production order, order accounting. As in Italy you usually have to show in the transaction the reason why this transaction is non-taxable, we suggest that you enter in the description of the tax code the relevant article of the law. E.g. IVA acquisti 0%, Art. 9.

Procedure 1. Define tax codes for input and output tax with 0% rate.

SAP Menu Financial Accounting � Financial Accounting Global Settings � Tax on sales/purchases � Posting � Assign Co. Code for non-taxable transactions




T001- MWSKV Input tax Code A0 tax code defined by SAP

T001- MWSKA Output tax Code V0 tax code defined by SAP



2.3.3.2 Defining Tax License Number Check (Lettera di esenzione)

Use Italian companies may be exempted from value added tax in certain circumstances. Please see section Accounting: Taxes in the Italian country documentation for information on how to implement the tax license number check.

2.3.3.3 Defining Tax on Sales and Purchases - Tax Codes

Use You have to define tax codes representing a tax category, which are taken into consideration when making a tax return to the tax authorities. Tax codes are unique per country. The tax rate calculation rules and further features are stored in a table for each tax code.

Prerequisites Ensure that the relevant tax calculation procedure (standard SAP: TAXIT) is assigned to the country Italy.


IMG Menu path Financial Accounting � Financial Accounting Global Settings � Tax on sales/purchases � Calculation � Define Tax codes for sales and purchase


2. On the Tax code screen, enter the necessary data.

The relevant tax codes are listed in the Appendix.

Deferred Tax

Deferred tax is common in Italy for sales/purchases on goods sold to public institutions. In this case tax can only be deducted on settlement. Tax codes relevant for deferred tax require an entry in the target tax code field. See example tax code S9. For further details on deferred taxes, please see the SAP Library and the documentation of report RFUMSV25.

2.3.4 Sales Tax Reporting For information on this section, select the relevant items in the substructure.



2.3.4.1 Monthly Reporting of Sales Tax

Use Program RFUMSV00 creates the monthly tax declaration. The program can, if required, create a batch input session for the automatic transfer of the tax payable. In Italy it is required that the documents reported in the VAT declaration must have a sequential numbering. In SAP you can use table TRVOR to ensure the sequential numbering. Furthermore in the monthly report it is required to display the previous month balance, this is also stored in TRVOR. If you start SAP during a calendar year, you have to enter the balance to TRVOR, the balance for the following month will be calculated and saved automatically. Before you run RFUMSV00 for Italy the first time, you have to make a first entry to TRVOR. The different VAT registers as required in Italy can be obtained by running RFUMSV00 separately for each VAT register.

Prerequisites Maintain tax codes, tax calculation procedure and account determination for tax codes and tax payable for Italy. Please refer to the country-independent localization guide for information on how to define the account determination for tax codes and tax payable posting.


Menu Not available in menu Transaction cde SM30 – table V_TRVOR

2. On the <Change View Control Statements: Overview> screen, enter the necessary data.


TRVOR-REPID

ABAP Program Name e.g. 00 Enter report ID

TRVOR-BUKRS

Company Code Enter company code

TRVOR-GJAHR

Fiscal Year Enter fiscal year

TRVOR-BUDAT

Posting Date in the Document

Enter posting date of the first period (only before first run, later updated automatically)

TRVOR-SUMSO

Cumulative Debit Amount in Local Currency (18 character)

Enter carried forward amount if debit

TRVOR-SUMHA

Cumulative Credit Amount in Local Currency (18 characters)

Enter carried forward amount if credit

TRVOR-VZAHL

Counter Enter first counter for sequential document number

TRVOR-CPUDAT

Accounting Document Entry Date

If you want to have different sequential numbering for the different VAT registers, you can define a report ID (field REPID - ABAP Program Name) per register and assign a different counter (field TRVOR-VZAHL). For further information refer to report documentation of RFUMSV00.



2.3.5 Withholding Tax Calculation For information on this section, select the relevant items in the substructure.

2.3.5.1 Activating Extended Withholding Tax

Use In Italy extended withholding tax functionality is used. Using the extended withholding tax functionality allows (among other things) to post two withholding tax types in a document and to specify fractions (e.g. 1/3) as the withholding tax rate, which is required by Italy.

Prerequisites The company code has to be defined.


IMG Menu path Financial Accounting � Financial Accounting Global Settings � Company Code � Activate Extended Withholding Tax


2. On the screen Change View Enhanced withholding tax functions active: overview, enter the necessary data.

Field name Description R./O./C Values Comment T001_EXT-BUKRS

Company Code Enter your company code

T001_EXT- WT_NEWWT

Ext w/tax X

For further information on official withholding tax codes, withholding tax types and how to setup withholding tax for Italy please see the Italian country documentation and information in SAP note 433443.

2.3.6 Withholding Tax Reporting Italian companies are required to submit monthly and yearly withholding tax reports and a separate yearly withholding tax report for withholding tax for self-employed persons.



2.3.6.1 Sending Vendor Letters and Withholding Tax

Use You can send a letter to the vendors to inform them on the withholding taxes, which you have deducted and reported for them during a certain period. The vendor letter is produced by program RFKQST00 (release 4.6C) and by program RFIDYYWT (for releases > 4.6C). To print the vendor letter on withholding tax information you have to create a copy of the SAP Script F_RFKQST60_20 which is delivered as a template and adapt it to your need. Then assign your own SAP Script to the withholding tax report.

Prerequisites Definition of withholding tax types, codes, official withholding tax codes (as described by SAP note 433443). Assignment of withholding tax types to the company code.


IMG Menu path Financial Accounting � Financial Accounting Global Settings � Withholding Tax � Extended Withholding Tax � Reporting � Define Form Names for Extended Reporting


2. On the <Change View Forms: Overview> screen, enter the necessary data.


LIFNR Program name RFKQST00 BUKRS Company Code Enter your company code EVENT Form ID Enter a form ID if you want to

use different forms, otherwise leave blank

FORNR Form Enter the name of your form (copy of F_RFKQST60_20)

To print the vendor letters, use the report RFKQST00 in the same way as for the withholding tax declaration. Please see the description below.

2.3.6.2 Monthly and Yearly Reporting of Withholding Tax

Use The monthly and yearly withholding tax report is produced by program RFKQST00 (release 4.6C) and by program RFIDYYWT (for releases > 4.6C).

Prerequisites Definition of withholding tax types, codes, official withholding tax codes (as described by SAP note 433443). Assignment of withholding tax types to the company code.


SAP Menu Accounting � Financial Accounting � Accounts Payable � Withholding Tax � Italy � Withholding Tax Report for the vendor

Transaction code SE38 – RFKQST00 or RFIDYYWT

2. On the <Withholding Tax Return> screen, enter the necessary data.




LIFNR Vendor Account BUKRS Company Code STIDA Open items at key date Enter month end date of the

reporting month AUGDAT Clearing date Enter reporting period P_VARIA Country Variant IT KANTIVA Tax on sales/pur. acct

dwn pyt Enter G/L account for

downpayment VAT QSTSAKO G/L account for Enasarco Enter G/L account, which was

posted with enasarco expenses

UNAUSGEG Also open invoices Flag, to select open invoices/partly paid invoices

DP_SELEC Including open downpayments

Flag, to select open downpayments

S_DPDAT Posting date for downpayment

Enter reporting period, to select only open downpayments posted during this period

FORMULAR Form print out Flag, to print vendor information letter

2.3.6.3 Reporting Withholding Tax – Modello 770

Use Modello 770 is the Italian withholding tax report for remuneration of self-employed persons. In an SAP system the major part of the data necessary for this report is available from HR. Only a certain part is available from FI i.e. invoice from self-employed persons registered and paid from FI-AP. Report RF0KST5 generates a file containing the FI data. The legal specifications for modello 770 tend to change slightly every year, therefore please make sure to check the latest information on it, which is published through an SAP Note.

Prerequisites Maintain the general settings for withholding tax calculation as described under Withholding Tax Calculation. Additional settings required for modello 770 have to be maintained in table RF07:


IMG Menu path No menu available until 4.7 Release 4.7: Financial Accounting � FI Global Settings � Withholding Tax � Extended Withholding Tax -- Reporting � Define Settings for Modello 770 (Italy)

Transaction code SM30 (table maintenance) –> V_RF07

2. On the Change view: modello 770: maintenance view for RF07 (Italian specific) screen, enter the necessary data.

Field name Description R./O./C Values Comment RF07- BUKRS


RF07-GJAHR Fiscal Year Enter the fiscal year for which you submit the report

RF07-LIFNR Account number of Enter the vendor accounts which



vendor are liable to withholding tax accd. to modello 770

RF07-CAUS Reason for payment of service

Enter the reason for the payment according to the legal specifications

RF07-REGIO_SF

Region Enter the region according to the legal specifications in table SF

RF07- NASSC Annual Amount Enter the annual amount not subject to w/tax

RF07-CDINAIL Number INAIL Entry/reporting no longer required RF07- DTINIZ Starting date of

INAIL insurance covering

Entry/reporting no longer required

RF07- DTFINE Ending date of INAIL insurance covering

Entry/reporting no longer required

RF07- CDCOMU Municipal code Enter municipal code RF07- REP_LIFNR

Foreign vendor representative (Italy)

In case of a foreign vendor, enter the account number of his Italian representative.


Menu No menu available

Transaction code SE38 – RF0KQST5

2. On the Withholding tax report for Italy: Modello 770 screen, enter the necessary data.

Field name Description R./O./C Values Comment LIFNR Vendor account

number Select the vendors to be

processed BUKRS Company Code Select the company code P_GJAHR Year of Presentation Enter the reporting year BUCHDT Payment date Enter reporting periods AUGDAT Clearing date Enter reporting periods S_HKNBA Accts excluded from

paid tot Select G/L accounts which

should be excluded from the declaration

S_HKASP Advance - Expenditures Select G/L accounts for advance payments

KANTIVA Advance - VAT Enter G/L account for downpayment VAT

P_FILE Create File Flag, to create a file P_PC Export to PC Flag, to export to your PC P_OUTPUT File path Enter the path and file name

For further description please see the documentation for modello 770, which is available on SAPSERV and SAP note for the respective year e.g. note 518061 for 2001.

2.3.7 Financial Reporting – Legal Requirements For information on this section, select the relevant items in the substructure.



2.3.7.1 Defining Fiscal Year Closing Procedure

Use The year-end closing report RFSUMB00 creates posting documents for closing profit and loss accounts and closing and opening balance sheet accounts in accordance with the legal requirements in Italy. The posting and closing of profit and loss accounts involves three posting steps. - Account balances for expense and revenue accounts are posted to the retained earnings accounts. - The balance of retained earnings is posted to a closing P&L account. - The balance of the P&L closing account is posted to the retained earnings account. The balances of the balance sheet accounts are initially posted to balance sheet closing account and then transferred back to the balance sheet accounts via a balance sheet opening account. For further description see the program documentation.

Prerequisites Define Chart of Accounts, maintain account determination for retained earnings accounts. Please refer to the country-independent localization guide on how to define the retained earnings accounts. For further details on the required settings and other activities for RFSUMB00 please see the program documentation


Menu Not available in 4.6C In Enterprise: Financial Accounting � General Ledger � Periodic Processing - Closing � Opening/Closing Entries � Italy

Transaction code SE38 – select RFSUMB00

2. On the <Year End Postings> screen, enter the necessary data.

Field name Description R./O./C Values Comment ACT_VERS Current Version Choose Italy KTOPL Chart of accounts SAKNR G/L account BUKRS Company code

3. Enter the necessary data on the <Selections>, <Accounts> and <Postings> screen.

2.3.8 Financial Reporting – Other Requirements For information on this section, select the relevant items in the substructure.



2.3.8.1 Defining Document Journal

Use The document journal report RFBELJ10 provides document journal according to the legal requirements in Italy. With the help of the table TRVOR it is possible to print the debit and credit balance of the previous reporting period. The program also uses TRVOR to provide a consecutive document number.


SAP Menu Accounting � Financial Accounting � General Ledger � Periodic Processing - Closing � Report � General Ledger Reports � Document � General � Document Journal

Transaction code -

2. On the <Document Journal Screen> screen, enter the necessary data.

Field name Description R./O./C Values Comment BUKRS Company code Enter your company

code GJAHR Fiscal Year Enter the fiscal year

For further Italian-specific settings see the country documentation for Italy.

2.3.9 Maintaining Customer/Vendor Master Data

Use For the correct reporting which is based on business partner data, it is important to maintain the correct fields in the business partner master data. Please refer to SAP Note 163554 and 486366 to find information on the validation checks implemented for Italian VAT registration numbers. For withholding tax reports referring to natural person esp. modello 770 it is necessary to fill not only the fields on the screen withholding tax but also the section Person subject to withholding tax on the control screen.


SAP Menu Financial Accounting � Accounts Payable/Receivable � Master Records � Create/Change

Transaction code FK01, FK02

7. On the <Control> screen, enter the necessary data.


LFA1-STCD1 Tax Code 1 xxxxxxxxxxxxxxxx LFA1-STCD2 Tax Code 2 xxxxxxxxxxx Is checked against the

region in the address LFA1-STCEG VAT reg. Number ITxxxxxxxxx Necessary for EU

business partners LFA1- STKZN Natural person X or blank LFA1-GBDAT Date of birth Enter date of birth LFA1-GBORT Place of birth MI Milano Enter place of birth,

preceeded by the



province of birth LFA1-SEXKZ Sex 1 or 2 LFA1-PROFS Profession Enter the profession

8. On the <Withholding tax accounting> screen, enter the necessary data.


LFBW-WITHT With.type Enter applicable withholding tax type

LFBW- WT_WITHCD

W/tax code Enter applicable withholding tax code

LFBW-WT_SUBJCT

Liable X or space Flag if the business partner is subject for withholding tax

LFBW-WT_QSREC

Rec.type Blank Not used in Italy

LFBW-WT_EXNR

Exemption number Enter exemption certificate number

LFBW- WT_EXRT

Exem.% Enter Exemption rate

LFBW- WT_WTEXRS

Exmpt resn Enter Reason for exemption

LFBW-WT_EXDF

Exempt from Date on which exemption begins

LFBW-WT_EXDT

Exempt to Date on which exemption ends

2.3.10 Payments For information on this section, select the relevant items in the substructure.

2.3.10.1 Specifying Bank Transfer Settings

Use The domestic bank transfer (Bonifico bancario) for Italy is supported by program RFFOIT_B. The program generates files according to the Italian SETIF format. For further information on this program, please see the program documentation.

Prerequisites Maintain account determination as described in the country-independent localization guide.


IMG Menu path Financial Accounting � Accounts Receivable and Payable � Business Transactions � Outgoing Payments � Automatic Outgoing Payments � Payment Method/Bank Selection � Set up Payment Methods per Country for Payment Transactions

Transaction code FBZP



8. On the <Payment methods per country> screen, enter the necessary data. (table T042ZL)

Field name


Comment

LAND1 Country IT ZLSCH B Bonifico bancario XAUSZ Outgoing payments X PROGN Payment medium program RFFOIT_B


IMG Menu path Financial Accounting � Accounts Receivable and Payable � Business Transactions � Outgoing Payments � Automatic Outgoing Payments � Payment Method/Bank Selection � Set up Payment Methods per Company Code for Payment Transactions


10. On the <Payment methods per company code> screen, enter the necessary data. (table T042E)

Field name


Comment

ZBUKR Paying company code Enter your company code

WFORN Next Form F110_IT_DTA

11. Maintain Form for Payment advice: Access the transaction using:

IMG Menu path Financial Accounting � Accounts Receivable and Payable � Business Transactions � Outgoing Payments � Automatic Outgoing Payments � Payment Method/Bank Selection � Set up Paying Company Codes for Payment Transactions


12. On the <Change View Paying Company Codes: Details> screen, enter the necessary data. (table T042B)


Comment


AFORN Next Form F110_IT_AVVISO EFORN EDI Form F110_EDI_01

In addition to the customizing settings, you have to enter an advice form for the bank on the selection screen of the printing program RFFOIT_B.


Comment

PAR_AFOR Payment advice for bank

F110_IT_AVVISO_B



2.3.10.2 Specifying Bill of Exchange Posting

Use Bill of exchange is a common payment method in Italy. The bill of exchange is issued after receipt of invoice and payment occurs before the bill due date.


IMG Menu path Financial Accounting � Bank Accounting � Business Transactions � Bill of Exchange Transactions � B/E Receivable � Post B/E Receivable � Define Alternative recon. Account for B/E receivable or … Bill of Exchange transactions � B/E payable � Create B/E Payable � Define Alternative recon. Account for B/E Payable

Transaction code OBYN or OBYM

2. On the Maintain Accounting Configuration: Special GL-List, enter the necessary data. Choose R - B/e payment request (B/E Receivable)

Field name


T074-KOART

Account type R D

T074-UMSKZ

Special G/L Indicator R R

KOPL Chart of Account R Enter your chart of account

T074-HKONT

Reconciliation account O XXXXXX 411XXX (INT)

Enter relevant reconciliation account

T074-SKONT

Special GL Account O XXXXXX 127000 (INT)

Enter G/L account for bills of exchange presented

R074-BSCHS


R074-BSCHH


T074U- ZUMKZ

Target Sp. Ledger ind. R W

3. On the Maintain Accounting Configuration: Special GL-List, enter the necessary data. Choose W - Bill of exch. (bankable) (B/E Receivable)

Field name


T074-UMSKZ


T074-KOART

Account type R D

KOPL Chart of Account R Enter your chart of account

T074-HKONT

Reconciliation account O XXXXXX 411XXX (INT)

Enter relevant reconciliation account

T074-SKONT

Special GL Account O XXXXXX 125000 (INT)

Enter G/L account for bills of exchange



receivable R074-BSCHS


R074-BSCHH


T074U- ZUMKZ


2.3.10.3 Specifying Bill of Exchange Payment

Use The bill of exchange can be issued by the payment program.

Prerequisites Create a copy of F110_D_WECHSEL for printout of the bill of exchange and adapt it to your needs.


IMG Menu path Financial Accounting � Accounts Receivable and Payable � Business Transactions � Outgoing Payments � Automatic Outgoing Payments � Payment Method/Bank Selection � Set up Payment Methods per Country for Payment Transactions


2. On the <Payment methods per country> screen, enter the necessary data. (table T042ZL)

Field name


LAND1 Country IT ZLSCH R Ricevuta bancaria XAUSZ Outgoing payments X XWECH Bill/exX X Flag to create a

bill of exchange PROGN Payment medium

program RFFOD__W


IMG Menu path Financial Accounting � Accounts Receivable and Payable � Business Transactions � Outgoing Payments � Automatic Outgoing Payments � Payment Method/Bank Selection � Set up Payment Methods per Company Code for Payment Transactions


4. On the <Payment methods per company code> screen, enter the necessary data. (table T042E)

Field name



ZFORN Form for payment transfer medium

Enter your copy of F110_D_WECHSEL





Use Check the country settings for the Italian country version.



SAP Menu Financial Accounting � Asset accounting � Organizational Structures � Check Country-Specific Settings

Transaction code -

3. On the < Change View Asset Accounting: Country information> screen, enter the necessary data.

Field name


T005A-LANDX

Country key IT

T005A-WAERS

Currency EUR

T005A-GWGWRT

Maximum low-value asset amount

516,46 Be sure to confirm that this amount is still valid

2.3.11.2 Specifying Chart of Depreciation

Use The chart of depreciation is a list of depreciation areas arranged according to business and legal requirements. In the past according to Italian law it was allowed to do a revaluation on asset values i.e. increase to asset values to allow for a reduction in the value of a currency because of inflation. In the sample chart of depreciation 1IT, which is delivered by SAP, there are several depreciation areas according to the revaluations.



Please check the chart of depreciation 1IT whether it is defined according to your business needs. If necessary copy the chart of depreciation and adapt it, then assign it to your company code.


SAP Menu Financial Accounting � Asset accounting � Organizational Structures � Copy Reference Chart of Depreciation

Transaction code -

5. On the < Copy/Delete Depreciation Areas> screen, enter the necessary data.

Field name


T093_00-AFAPL

Chart of depreciation 1IT


Use Assign the relevant chart of depreciation (the sample 1IT or your copy) to your Italian company code.



IMG Menu path Financial Accounting � Asset Accounting � Organizational Structures � Assign Chart of Depreciation to Company Code


4. On the < Copy/Delete Depreciation Areas> screen, enter the necessary data.

Field name


T093C_00-BUKRS


T093C_00-AFAPL

Chart of depreciation 1IT Sample 1IT or your copy

2.3.11.4 Asset Register

Use The asset register displays all transactions regarding fixed assets such as acquisitions, retirements, transfers, depreciation and revaluation.



There are two reports available to fulfill Italian specific requirements. The Italian asset register has to be printed according to special sort criteria (location, year, description, license plate number). You can define the sort sequence in FI-AA Customizing and use report RAITAR01 to print the asset register according to Italian requirements. For the Italian Asset Register by Third Party Locations use the specific report RAITAR02. For the Italian Asset Register it is necessary to define in advance in the customizing which fields should appear and should be used as a sort key for each company code, account determination and asset class.



IMG Menu path Financial Accounting � Asset accounting � Information System � Asset History Sheet � Define Asset Register for Italy


2. On the <Change View Selection table for Italian Asset Register:Overview> screen, enter the necessary data.

Field name


T088-BUKRS

CoCode Enter your company code

KTOGR Account Determination Enter the relevant account determination groups

XPRSTO Indicator: Print the location in the asset register

X or blank

XPRTXT Indicator: Print asset text in the asset register

X or blank

XPRKNZ Indicator: Print indicator in asset register

X or blank

XPRZUJ Indicator: Print acquisition year in asset register

X or blank


SAP Menu Financial Accounting � Fixed Assets � Information System � Notes to Financial Statements � Country Specific � Italy � Asset Register (Italy) � Asset Register by Third Party Locations (IT)

Transaction code -

4. On the <Asset Register (Italy)> screen, enter the necessary data.


BUKRS Company Code Enter your company code

BERDATUM Reporting date Enter the reporting date

PA_GITVS Asset History Sheet version

005 Asset History Sheet version for Italy



2.3.12 Purchasing For information on this section, select the relevant items in the substructure.

2.3.12.1 Customizing Purchase Account

Use In Italy for material management purchase account posting is used. The delivered price or the inventory posting is posted as a value to the purchase account.

Prerequisites Activate Purchase Accounting in the Italian company code (see also maintaining company code).


IMG Menu path Materials Management � Valuation and Account Assignment � Account Determination � Account Determination w/o Wizard � Purchase Account Management � Activate Purchase Account in Company Code


2. On the <Change View Definition of Purchase Account Mgmt: Overview> screen, enter the necessary data.

Field name Description R./O./C User action and values Comment V_001_MPUR-BUKr


V_001_MPUR-XEINK

Indicator: Purchase Account Processing is Active

X


IMG Menu path Materials Management � Valuation and Account Assignment � Account Determination � Account Determination w/o Wizard � Purchase Account Management � Calculation of Value for Purchase Account


4. On the <Change View Set up Calculation of Value for Purchase Account> screen, enter the necessary data.

Field name Description R./O./C User action and values Comment V_001K_EK-BWKEY

Valuation Area Enter your valuation area

V_001_MPUR- BUKRS


V_001K_EK-XEWRX

Post purchase account with receipt value

X

V_001K_EK-XEFRE

Del. costs to price diff. acct when purch. acct active

Blank


IMG Menu path Materials Management � Valuation and Account Assignment �



Account Determination � Account Determination w/o Wizard � Purchase Account Management � Separate Account Document for Purchase Account Postings

Transaction code -

6. On the <Configure separate accounting document> screen, enter the necessary data.

Field name Description R./O./C User action and values Comment V_001K_EK2-BWKEY

Valuation Area Enter your valuation area

V_001K_EK2-BUKRS


V_001K_EK2-X2FDO

Two FI documents with purchase account

X


IMG Menu path Materials Management � Valuation and Account Assignment � Account Determination � Account Determination w/o Wizard � Purchase Account Management � Automatic Postings


8. On the <Automatic Posting> screen, choose Account Assignment and enter the necessary data.

Field name


T004-KTOPL

Chart of accounts Enter your chart of accounts

T030R-KTOSL

Transaction Key EIN Purchasing Account

T030- KONTS

Account XXXXXX 379998 (INT)

Enter your purchase account number

T030R-KTOSL

Transaction Key EKG Purchase Offsetting Account

T030- KONTS

Account XXXXXX 379999 (INT)

Enter your purchase offsetting account number

2.3.12.2 XAB Number

Use According to Italian law, any goods which are transported on public roads must be accompanied by the Bolla di accompagnamento beni viaggianti, the so-called XAB document. See country manual Italy for more information on the XAB document. In SAP R/3 XAB is a standard functionality as of Release 4.0A, with a specific transaction MBXA - XAB printing.

1. Start Transaction MBXA. (The XAB-Printing Transaction)

2. Try to print different movements. 3. Examine the behavior of the transaction with multi item Material-Documents.



Prerequisites XAB-Number functionality must be activated for the Italian plant and for the important movement types. Copy the sample layout set MB_XAB and adapt it to your needs, then assign it to the print program.


IMG Menu path Materials Management � Inventory Management � Number Assignment � Define Number Assignment for Goods Receipt/Issue Slips


2. On the <GR/GI Slip Number> screen, choose Plant and enter the necessary data.


V_159L_XA-WERKS

Plant Enter your Italian Plant


IMG Menu path Materials Management � Inventory Management � Print Control � Assign Forms (Layout Set) for Print Reports


4. On the <Change View Layout Set Version: Details> screen, enter the necessary data.

Field name


V_159N-REPID

Report SAPLMBXA Enter report XAB processing for Italy

V_159N-TDFORM

Form Your form or MB_XAB


SAP Menu path -

Transaction code MBXA

6. On the <Printout of XAB Documents> screen, enter the necessary data.

Field name


MXABK-MBLNR

Material Doc. Number of material document

MXABK-MJAHR

Mat. doc. year Material doc. year

MXABK-XABLN

GR/GI Slip no. Goods receipt/issue slip number

MXABK-VBELN

SD document Sales and distribution document number



2.3.13 Sales For information on this section, select the relevant items in the substructure.

2.3.13.1 Pricing Scheme

Use The Italian specific pricing scheme considers the following legal requirements: tax exemption license and invoice stamp duty (bollo in fattura). Please consider also the Italian country documentation and SAP Note 446854.

Prerequisites Assign the pricing scheme RVAAIT to your sales organization/distribution channels and so on. Alternatively, create a copy of RVAAIT, which contains the necessary conditions LCIT and BOLL.


IMG Menu path Sales and Distribution � Basic Functions � Pricing � Pricing Control � Define and Assign Pricing Procedure � Define Pricing Procedure Determination


2. On the <Change View Pricing Procedures: Determination in Sales Doc.:Overview> screen, enter the necessary data.

Field name


T683V-VKORG

Sales Organization Enter your sales organization

T683V-VTWEG

Distribution Channel Enter your distribution channel

T683V-KALSM

Pricing Procedure RVAAIT

2.3.14 Appendix For information on this section, select the relevant items in the substructure.

2.3.14.1 Tax Codes Tax codes relevant for Italy (according to SAP standard delivery release Enterprise)



Field name

Description Values Comment

T007A-MWSKZ

Taxcode 00 Fuori campo vendita 0%

99 Fuori campo acquisti 0%

A0 IVA acquisti 0%

A1 IVA acquisti 10%

A9 IVA acquisti 19%

E0 IVA acquisti 0%, Art. 9

E1 IVA vendite CEE 0%

I9 IVA acquisti 19%, 50% non detraibile

S9 IVA vendite 19%, in sospeso

T1 codice 4% per corrispettivi



V0 IVA vendite 0%

V1 IVA vendite 10%

V9 IVA vendite 19%

X1 IVA acquisti CEE 10%



2.4 US – Localization Guide USA For information on this section, select the relevant items in the substructure.

2.4.1 Financial Accounting For information on this section, select the relevant items in the substructure.

2.4.1.1 Chart of Accounts While it is not possible to deliver a chart of accounts that suits the needs and requirements of all U.S. organizations, at a minimum, it must provide the flexibility to support the Generally Accepted Accounting Principles (GAAP) in the United States. It should accommodate a general structure similar to the following:

• Assets



• Liability

• Capital/Equity

• Revenue and Deductions

• Cost of Sales

• Operating Expenses

• Other Expenses

• Other Income and Expenses

The pre-delivered Chart of Accounts for North America [CANA] is a template that can be used to create your own U.S. based chart of accounts.

2.4.1.2 Cost of Sales Accounting In the preparation of income statements, a classification of expenses by functions, such as manufacturing (cost of goods sold), merchandising, administration, and sales, is employed to make a basic distinction between operating and non-operating activities. This is the most common approach in the United States because it recognizes a separation of operating transactions from non-operating transactions, and matches costs and expenses with related revenues. For example, the income statement should provide a distinction between salary expenses associated with selling activities vs. salary expenses associated with administrative activities. Functional areas are used to facilitate cost of sales reporting.

Income Statement Presentation Following is a typical income statement format reported by a US company:

• Sales

• Cost of sales

• Gross profit

• Other operating expenses

• Selling expenses

• General and administrative expenses

• Research and development expenses

• Income from operations

• Other income and expenses

• Interest expense

• Other income (net)

• Minority interest

• Income before taxes

• Provision for income taxes

• Net income

• Basic earnings per share of common stock

To produce a financial statement above, the system has to be capable of classifying expenses in categories, such as selling, G&A and R&D expenses.



Activating Cost of Sales Accounting for Preparation

Use To make the Functional area field available for entry in the master data of G/L accounts, cost elements, and some CO account assignment objects, you must activate the cost of sales accounting for your company code.

Procedure To carry out this activiy, choose:

IMG path Financial Accounting � Financial Accounting Global Settings � Company Code � Cost of Sales Accounting � Activate Cost of Sales Accounting for Preparation

Transaction code OBZL

Make sure your Company Code has the status Active.

Entering Functional Area in Cost Center Categories

Use In the previous step the cost of sales accounting was activated. To specify the functional area master data choose the activity Activate Cost of Sales Accounting for Preparation.

Procedure To carry out this activity, choose:

IMG path Financial Accounting � Financial Accounting Global Settings � Company Code � Cost of Sales Accounting � Enter Functional Area � Enter functional area in Cost Center Categories

Transaction code

Following is an example of the functional area settings you would make to link the cost center categories to a corresponding functional area. CCrC Name FA F Production YPRD V Sales YSLS W Administration YADM

2.4.1.3 Tax on Sales/Purchases In the United States, tax on sales and purchases is known as sales and use tax. Sales and use tax is levied on the sale of tangible personal property and is imposed by tax authorities on transactions. Most states in the United States impose a sales tax on sales of goods. As a general rule, the consumer bears the tax and the vendor merely acts as a collector for the jurisdiction. Most jurisdictions that impose sales tax also impose a complimentary use on the use or consumption of goods originating from another state. Transactions are generally subject to sales or use tax, but not both, and payment is generally self-imposed by the buyer or seller. Sales tax is levied on the sale of taxable goods and is imposed by the tax authorities on transactions that occur within a state. If you are a seller in an intrastate transaction, you must collect and remit sales tax to the tax authorities. If you are a purchaser in an intrastate transaction, the vendor must collect sales tax from you and remit it to the tax authorities. Use tax is a tax imposed on the purchaser of sales originating from another state. The purchaser, not the seller, is liable to accrue and pay the use tax in the jurisdiction where the goods and services are consumed. Generally, there is an exemption from use tax for goods purchased for resale or production materials. If you purchase and consume goods from another state, the vendor does not charge tax on the invoice. Therefore, you are required to remit use tax to your local tax authority. If you sell goods to a



purchaser in another state, you do not charge sales tax. The purchaser is liable to remit use tax to the tax authority where the goods are consumed. Tax calculations are based on tax rates (percentages) imposed by tax jurisdictions at the state, county, city, and/or local level. Due to the large number of tax jurisdictions in the United States, and the overhead associated with maintaining the changing tax rates and jurisdictions, many companies rely on third party tax packages to provide the relevant information. Vertex and Taxware are two of the most common software packages used. Following is a description of the configuration required to implement external tax determination using Vertex.

2.4.1.3.1 Jurisdiction Codes Standard R/3 delivers example state-level jurisdiction codes with the following format: XX0000000, where XX is the two letter state abbreviation. Tax Codes For all 50 state jurisdiction codes percentages must be created for the following tax codes: Tax Code Description I0 A/P Sales Tax, Exempt I1 A/P Sales Tax, Taxable, Distribute to Line Items

O0 A/R Sales Tax, Exempt O1 A/R Sales Tax, Taxable U1 A/P Use Tax, Taxable, Self-assessed

2.4.1.3.2 Tax Accounts Definition The following G/L accounts must be assigned to the Sales & Use tax codes: Tax Code Account Key Description O0 and O1 MW1 Sales Tax Accrued (AR) – State O0 and O1 MW2 Sales Tax Accrued (AR) – County O0 and O1 MW3 Sales Tax Accrued (AR) – City O0 and O1 MW4 Sales Tax Accrued (AR) – Others U1 MW1 Use Tax Accrued (AP) – State U1 MW2 Use Tax Accrued (AP) – County U1 MW3 Use Tax Accrued (AP) – City U1 MW4 Use Tax Accrued (AP) – Others I0, I1 and U1 NVV N/A

2.4.1.3.3 Tax on Sales/Purchases

Assigning Country to Calculation Procedure

Procedure Enter the key for the calculation procedure that determines the conditions that are allowed per document and defines the sequence of the conditions in the document for each country. Each calculation procedure



you enter must contain the necessary specifications for calculating and posting the taxes on sales/purchases. To carry out this activity, choose:

IMG path Financial Accounting � Financial Accounting global settings � Tax on Sales / Purchases � Basic Settings � Assign Country to Calculation Procedure

Transaction code

Assign the tax procedure that contains jurisdictions to the US, for example TAXUSJ.

DefiningTax Codes for Sales and Purchases

Use You have to define a separate tax on sales/purchases code for each country in which one of your company codes is located. Each code contains one or more tax rates for the different tax types. It is common in the US to have tax-exempt or non-taxable sales to the tax authorities. Therefore, it is necessary to have a tax rate with the value 0.


IMG path Financial Accounting � Financial Accounting global settings � Tax on Sales / Purchases � Calculation � Define tax codes for sales and purchases


Please refer to the Appendix for examples of tax codes and rates.

Defining Tax Accounts

Use You must specify the accounts to which the different tax types are to be posted. The system determines these accounts for automatic postings.

Procedure To carry uot this activity, choose:

IMG path Financial Accounting � Financial Accounting global settings � Tax on Sales/Purchases � Posting � Define tax accounts


For the chart of accounts defined for your company code, you must make the following assignments. Although the Account column has been left blank, it is necessary for you to assign an account to each grouping. Transaction Tax Code Account MW1 (Sales Tax 1) O0 MW1 (Sales Tax 1) O1

MW1 (Sales Tax 1) U1 MW2 (Sales Tax 2) O0 MW2 (Sales Tax 2) O1 MW2 (Sales Tax 2) U1 MW3 (Sales Tax 3) O0 MW3 (Sales Tax 3) O1 MW3 (Sales Tax 3) U1 MW4 (Sales Tax 4) O0 MW4 (Sales Tax 4) O1 MW4 (Sales Tax 4) U1



Assigning Tax Codes for Non-Taxable Transactions

Use It is necessary to define an incoming and outgoing tax code for each company code, to be used for posting non-taxable transactions to tax-relevant accounts. Transactions posted like this are, for example; goods issue delivery, goods movement, goods receipt purchase order, goods receipt production order, order accounting.


IMG path Financial Accounting � Financial Accounting global settings � Tax on Sales/Purchases � Posting � Assign tax codes for non taxable transactions


Enter your Company Code in the CoCd field. Input tax I0, Output tax 00 and your Jurisdiction Code. CoCd Input Tax Output Tax Jurisdiction Code Your company code I0 00 Your Jurisdiction Code

2.4.1.3.4 External Tax Calculation Quantum and eQuantum by Vertex are third-party products, external to mySAP.com, that calculate and report taxes on sales and purchases There are two products that Quantum by Vertex delivers: Quantum is the traditional product to determine taxes in an ABAP based environment such as R/3 or CRM. R/3 has a sales tax application-programming interface (API), which defines how to communicate with an external tax system. The Translink application needs to be installed on each application server to properly communicate via RFC calls. The external tax interface is called via the API: During address maintenance to retrieve the appropriate tax jurisdiction code for customer, vendor, cost center, plant, and company code address During order and invoice processing out of SD to retrieve tax amounts and/or determine exemptions During the execution of the SAP update utility program, which updates Quantum by Vertex’s audit files with the appropriate tax information EQSUT (eQuantum) is for the Java environments and is not discussed in this document.

2.4.2 Connecting and Activating External Tax Software For information on this section, select the relevant items in the substructure.

2.4.2.1 Activation in R/3

Prerequisites • Quantum by Vertex has been installed.

• Fully configured backend R/3 system.



The following steps assume you are on release 4.6C. The IMG menu path and the screenshots may also look different in older R/3 releases.

2.4.2.2 Connecting R/3 to Vertex Communication between SAP and Quantum by Vertex gets established by using SAP RFC (Remote Function Calls). An RFC destination must be created that specifies the type of communication and the directory path in which Quantum by Vertex’s RFC target program is installed.

2.4.2.2.1 Defining Physical Destination


SAP menu Tools � Administration � Administration � Network � RFC Destinations

Transaction code SM59

Create an RFC connection with the following settings:

Field name


RFCTYPE Connection type R T .

RFCEXEC Program O /opt/vertex/verrfc

2.4.2.2.2 Assigning Country to Calculation Procedure


IMG path Financial Accounting � Financial Accounting Global Settings � Tax on Sales/Purchases � Basic Settings � Assign Country to Calculation Procedure

Transaction code

Assign the country US to the tax calculation procedure TAXUSX.



2.4.2.2.3 Specifying Structure for Tax Jurisdiction Code


IMG path Financial Accounting � Financial Accounting Global Settings � Tax on Sales/Purchases � Basic Settings � Specify Structure for Tax Jurisdiction Codes

Transaction code

Assign structure 2, 3, 4, 1 to the tax calculation procedure TAXUSX.

2.4.2.2.4 Allocating Company Code to Non-Taxable Transactions


IMG path Financial Accounting � Financial Accounting Global Settings � Tax on Sales/Purchases � Posting � Assign Tax Codes for Non-Taxable Transactions

Transaction code

Assign your US company code to dummy jurisdiction code XX0000000.

2.4.2.2.5 Creating Number Range for External Tax Document


IMG Menu Financial Accounting � Financial Accounting Global Settings � Tax on Sales/Purchases � Basic Settings � External Tax Calculation � Define Number Ranges for External Tax Returns

Transaction code

Create a number range for the external tax document type.

2.4.2.2.6 Defining Logical Destination


IMG path Financial Accounting � Financial Accounting Global Settings � Tax on Sales/Purchases � Basic Settings � External Tax Calculation � Define Logical Destination

Transaction code



Assign the physical destination VERTEX_MAXTAX to the logical destinations for Quantum by Vertex (V in the first column stands for Vertex).

2.4.2.2.7 Activating External Tax Calculation


IMG path Financial Accounting � Financial Accounting Global Settings � Tax on Sales/Purchases � Basic Settings � External Tax Calculation � Activate External Tax Calculation

Transaction code

Assign the external tax calculation id for Vertex V to TAXUSX.

2.4.2.2.8 Activating External Updating


IMG path Financial Accounting � Financial Accounting Global Settings � Tax on Sales/Purchases � Basic Settings � External Tax Calculation � Activate External Updating

Transaction code

Activate the component EXTX for external updating.

2.4.3 Configuration in R/3 For information on this section, select the relevant items in the substructure.

2.4.3.1 Creating Tax Code for External Tax Calculation


IMG path Financial Accounting � Financial Accounting Global Settings � Tax on Sales/Purchases � Calculation � Define Tax Codes for Sales and Purchases


Create the following five tax codes for the tax procedure TAXUSX and country US: Tax Code

Description Condition types Tax Type Relevant to Tax

Tax Category



Tax Code

Description Condition types Tax Type Relevant to Tax

Tax Category

O0 A/R Sales Tax Exempt

Condition types XR1–XR6 are maintained with a 100% rate.

A (Output tax)

2

O1 A/R Sales Tax Condition types XR1–XR6 are maintained with a 100% rate.

A (Output tax)

0

• I0 • A/P Tax Exempt

• Condition types XP1I–XP6I are maintained with a 100% rate.

• V

• (Input tax)

• 2 •

• I1 • A/P Sales Tax

• Condition types XP1I–XP6I are maintained with a 100% rate.

• V

• (Input tax)

• 0 •

• U1 • A/P Self Assessment Use Tax

• Condition types XP1I–XP6I are maintained with a 100% rate. Negative 100% is entered for condition types XP1U–ZP6U to force the credit entry to the tax liability accounts.

• V

• (Input tax)

• 0 1 (Consumer Use Tax)

The values in the Relevant to Tax column can be interpreted as follows: • Setting the Relevant to tax indicator to 2 will bypass the call to the external tax system, which

saves processing time. If handling exemptions occur within Quantum by Vertex, then this indicator must be set to 0 or space, because the call must be made to Quantum by Vertex to access its exemption handling.

• Leaving the Relevant to tax indicator blank means that the tax code is relevant to tax and a call will be made to Quantum by Vertex to decide the tax rate.

Note that if condition types are maintained at 0%, when choosing Enter, the 0% values disappear. However, the lines become highlighted, indicating they are active.

2.4.3.2 Updating Jurisdiction Codes in R/3 Addresses After activating external tax determination the entire existing jurisdiction codes in your master data and your configuration must be changed for Vertex to be able to determine it.

It is crucial that a correct address with matching city, state, and zip code are provided to Quantum by Vertex for the jurisdiction code determination.

2.4.3.2.1 Changing Jurisdiction in Company Code Address


IMG path Financial Accounting � Financial Accounting Global Settings � Company Code � Enter Global Parameters




Delete the jurisdiction codes in the address of your U.S. company code. When you leave the transaction and save your settings, it will be automatically determined by Vertex and be filled in.

2.4.3.2.2 Changing Jurisdiction in Plant Address


IMG path Enterprise Structure � Definition � Logistics-General � Define, copy, delete, check plant


Delete the jurisdiction codes in the addresses of your US plants. When you leave the transaction and save your settings, it will be automatically determined by Vertex and be filled in.

2.4.3.2.3 Changing Jurisdiction in Cost Center Addresses


IMG Menu Controlling� Cost Center Accounting � Master Data � Cost Centers � Create Cost Centers

Transaction code KS02

Delete the jurisdiction codes in the addresses of your cost centers. When you leave the transaction and save your settings, it will be automatically determined by Vertex and be filled in.

2.4.3.3 Changing Jurisdiction in Master Data Address

After the activation of Vertex, all customer and vendor master records must be changed.

Procedure 1. Delete all the jurisdictions in all addresses (you may have to create a batch update program for this if

you have a lot of master data records).

2. Vertex will update these fields with its own jurisdiction codes provided the address information is valid, that is city, state and zip match.

2.4.4 Payment For information on this section, select the relevant items in the substructure.



2.4.4.1 Creating Payment Terms


IMG Menu Financial Accounting � Account Receivable and Accounts Payable � Business transactions � Incoming invoices/ credit memos � Maintain Terms of payment

Transaction code OBB8

Create the following payment terms, which are are common in the US: Payment Terms Description NT00 Payable upon receipt NT30 Net 30

NT45 Net 45 NT60 Net 60

2.4.4.2 1099 Tax Reporting Payments made to individuals who are not employees may be subject to Form 1099-MISC reporting. It is the company’s responsibility to send vendors subject to this requirement information on how much was paid to them in a format specified by the Internal Revenue Service (FORM 1099) at the end of the calendar year. In addition, this information must be forwarded to the Internal Revenue Service in either electronic media or paper copy. The standard system contains the appropriate configuration settings that enable you to keep track of 1099 eligible payments for each vendor subject to the requirement (note that not all payments to vendor may be classified as 1099 payments), and create the 1099 forms and electronic media output. The specifications for the output are dictated by the IRS and may change from year to year.

2.4.5 Electronic Bank Statement Reconciliation

Overview The SAP bank statement reconciliation program offers customers daily reconciliation of cash in transit postings made during the prior day. BAI is the most common file format for the bank statement used in the United States. Although it is regulated by the Bank Administration Institute, the format is loosely interpreted by most banks and can vary significantly from bank to bank. For this reason, the SAP system offers a wide range of flexibility when importing bank statements from each bank. The program RFEBKA00 imports account statements into the R/3 System, and then offers three options: • Create batch input sessions for updating the general ledger and the subledger. • Post immediately to the general ledger and subledger. • Create memo records. There is also the option to post only to the general ledger and then run the program again at a later time to post to the subledger. The most common usage is to post immediately.



2.4.5.1 Configuration

General Ledger Accounts The bank statement processing uses two-step posting logic. Theoretically, any entries made to the general ledger are posted to clearing accounts. The only postings made to the main general ledger account assigned to the bank account are made automatically by the bank statement program. The first posting is made by the user and the second is made automatically by the bank statement which clears the item from the clearing account and posts to the master account. Since SAP does not supply a banking subledger, it must be created in the general ledger. As a rule, each bank account is assigned ten general ledger accounts, one master account (ending in “0”) and nine clearing accounts. Not all accounts require all nine clearing accounts, but the logic should be consistent. For example, a controlled disbursement account would only have an outgoing check clearing account, possibly an outgoing ACH clearing account, and a ZBA transfer account for funding. The following table describes the general ledger accounts used and the logic in the numbering. Create the following accounts: Name and Description Relevant Settings Concentration Account – <Bank name> This is the master account. The balance in this account should always be the same as the balance in the bank account. All master accounts should end with a “0.”

This account should have line item display, but not be open item managed. Planning level B0 should be assigned to this account.

Concentration Account - Wires Out This is the clearing account for outgoing wire transfers from the concentration account. All outgoing wire accounts should end with a “1.”

This account should have line item display and be open item managed. Planning level B1 should be assigned to this account.

Concentration Account - Wires In This is the clearing account for incoming wire transfers to the concentration account. All incoming wire accounts should end with a “2.”


Concentration Account – ACH Out This is the clearing account for outgoing ACH transfers from the concentration account. All outgoing ACH accounts should end with a “3.”


Concentration Account - ACH In This is the clearing account for incoming ACH transfers to the concentration account. All incoming ACH accounts should end with a “4.”


Concentration Account – Checks Out This is the clearing account for outgoing Checks from the concentration account. All outgoing Checks accounts should end with a “5.”


Concentration Account - Checks In This is the clearing account for incoming Checks to the concentration account. All incoming Checks accounts should end with a “6.”


Concentration Account – ZBA Transfers This is the clearing account for ZBA transfers to and from the concentration account. All ZBA transfer accounts should end with a “7.”


Concentration Account – Other Transfers This is the clearing account for Other transfers to and from the concentration account. All Other transfer accounts should end with an “8.”


Concentration Account – Treasury Transfers This is the clearing account for Treasury transfers to and from the concentration account made by the treasury module. All Treasury transfer accounts should end with a “9.”




2.4.5.2 Make Global Settings for Electronic Bank Statement In this activity you make the global settings for the account statement. There are four main steps to be carried out: • Create Account Symbol • Assign Account to Account Symbol • Create Keys for Posting Rules • Create Transaction Types

2.4.5.2.1 Creating Transaction Type


IMG path Financial Accounting → Bank Accounting → Business Transactions → Payment Transactions → Electronic Bank Statement → Make Global Settings for Electronic Bank Statement→ Folder: Create Transaction Types

Transaction code OBBY

Create transaction type BAI. A transaction type is freely definable by the customer and only one is required for bank statement processing. It may be necessary to create more than one if the various banks use the BAI transaction codes differently. It is recommended that all bank accounts be initially assigned to the same transaction type. More transaction types can be created at a later time if necessary. Transaction Type Name BAI Bank Administration Institute (USA)

2.4.5.2.2 Assigning Banks to Transaction Types and Currency Classes


IMG path Financial Accounting → Bank Accounting → Business Transactions → Payment Transactions → Electronic Bank Statement → Make Global Settings for Electronic Bank Statement Folder: Assign Banks to Transaction Types and Currency Classes.

Assign each bank account with its corresponding ABA number to the transaction type created in the previous step.



2.4.5.2.3 Creating Keys for Posting Rules


IMG path Financial Accounting → Bank Accounting → Business Transactions → Payment Transactions → Electronic Bank Statement→ Make Global Settings for Electronic Bank Statement→ Folder: Create Keys for Posting Rules

Transaction code OT57

Create the following posting rules

Posting Rule Text

Y02 Debit Master; Credit Wires In

Y04 Debit Master; Credit ACH In

Y06 Debit Master; Credit Checks In

Y07 Debit Master; Credit ZBA Transfers

Y08 Debit Master; Credit Other Transfers

Y09 Debit Master; Credit Treasury Transfers

Y10 Debit Wires Out; Credit Master

Y30 Debit ACH Out; Credit Master

Y50 Debit Checks Out; Credit Master

Y70 Debit ZBA Transfers; Credit Master

Y80 Debit Other Transfers; Credit Master

Y90 Debit Treasury Transfers; Credit Master

Posting rules must be defined to tell the import program how to treat the external BAI transaction codes. The logic in the design of the rules incorporates the logic used in defining general ledger clearing accounts and also planning levels used in cash management. A “0” designates the general ledger account which is assigned to the main bank account defined in house bank customizing. Each of the other numbers refers to a clearing account associated to the main account.

2.4.5.2.4 Defining External Transaction Codes


IMG path Financial Accounting→ Bank Accounting→ Business Transactions→ Payment Transactions→ Electronic Bank Statement→ Make Global Settings for Electronic Bank Statement→ Folder: Assign External Transaction Types to Posting Rules

In this step you define the specific BAI transaction codes (external) used by the bank.

External Transaction Code Description

115 Incoming Deposit

165 Preauthorized ACH Credit

195 Incoming Money Transfer



214 Foreign Exchange Credit

246 Commercial Paper

275 ZBA Credit

399 Miscellaneous Credit

455 Pre-authorized Debit

475 Check Paid

495 Outgoing Money Transfer

514 Foreign Exchange Debit

546 Commercial Paper

575 ZBA Debit

699 Miscellaneous Debit

2.4.5.2.5 Assigning External Transactions to Posting Rules

Use In this step, the external BAI transaction codes are assigned to internal posting rules. If an external code appears on the bank statement which has not been configured, it is posted using the rule set up for the “UNALLOCATED” code.


IMG path Financial Accounting → Bank Accounting → Business Transactions → Payment Transactions → Electronic Bank Statement → Make Global Settings for Electronic Bank Statement→ Folder: Create Transaction/Assign External Transactions to Posting Rules


The way in which the import program interprets the code is also assigned here. The standard algorithm searches by document number first, then the reference document number, and finally by amount. The Outgoing check algorithm has been assigned to code 475, which is an outgoing check. This allows the program to find and encash the check, as well as clear the payment document. The rule also assumes that the check number is different from the payment document number and that the check register is used. The reference number (DME management) is used for clearing batched ACH payments.

2.4.5.2.6 Defining Posting Rules for Electronic Bank Statement




IMG path Financial Accounting → Bank Accounting → Business Transactions → Payment Transactions → Electronic Bank Statement → Make Global Settings for Electronic Bank Statement→ Folder: Define Posting Rules


Posting area. This refers to the area of the system: 1 = General Ledger 2 = Subledger Account symbols. These refer to specific general ledger accounts (see below). Posting type. This tells the program how to make the postings: 1 – Post to G/L account. The item will be posted with no check to see if it can clear an open item in the clearing account. 4 – Clear G/L account in debit. The program will attempt to clear an item from the clearing account. If it cannot clear the item, there will be no posting. 5 – Clear G/L account in credit. Same as above. 8 – Clear subledger account in credit. Same as above but for subledger accounts.

Pmt/Acct posting key. This works in combination with the posting types 4 and 5. If the program is not able to clear an item, it will make an on account posting.

For posting rules which use both posting area 1 and 2, the system must be configured as above. When the program runs, posting area 1 posts first, then area 2. In this case, the rule for posting area 1 cannot be set to try to clear since there will never be an offsetting posting in the clearing account. The offsetting entry is put in when the subledger item is cleared. Since the subledger is posted second, there will never be an open item in the clearing account which can be cleared by the general ledger posting. The result is that there will be two offsetting entries in the clearing account but they will still be open.

2.4.5.2.7 Account Symbols The account symbols are mapped to general ledger accounts of the chart of accounts using masking. Once again, the symbols follow the logic of the general ledger accounts. The account determination configuration is generic but typical for U.S. companies. For symbol Y0, the import program determines the account. The account is in the house bank’s account id definition and the program finds this based on the account and ABA number in the file. All of the other postings are made by replacing the 0 in the master account with the number that corresponds to the associated clearing account. The plus sign (+) in the table is used as a wildcard. Account Symbols Account Assignment Acct Symbol Description Acct Symbol Acct

Modification Currency G/L Account

Y0 Master Account

Y0 + + ++++++++++

Y1 Wires Out Y1 + + +++++++++1 Y2 Wires In Y2 + + +++++++++2 Y3 ACH Out Y3 + + +++++++++3 Y4 ACH In Y4 + + +++++++++4 Y5 Checks Out Y5 + + +++++++++5 Y6 Checks In Y6 + + +++++++++6 Y7 ZBA Transfer Y7 + + +++++++++7 Y8 Other Transfer Y8 + + +++++++++8 Y9 Treasury Y9 + + +++++++++9



Transfer

2.4.5.3 Bank Statement Upload Program

Interpretation of the Note to Payee Fields For incoming payments, the notes to payee lines of the account statement can be searched either for document numbers or reference document numbers by specifying the selection field (BELNR or XBLNR). Thus, the relevant information for clearing customer payments is obtained. If a selection field is not specified, the note to payee fields is not interpreted. For outgoing payments, one always searches for the document number. Accelerated processing time can be achieved by narrowing the search for document numbers or reference document numbers. Values that do not correspond to the predefined length and are outside the specified number interval are ignored by the report and are not used as clearing information.

Unallocated Business Transaction Code The report checks whether the business transaction codes (external transactions) used by the bank were allocated to an “internal transaction” within the default settings. This check is necessary because the update on the G/L accounts and the subsidiary accounts is carried out through posting rules that are stored for an internal transaction. If the report encounters an external transaction that is not maintained in the corresponding table, posting is carried out based on an “unallocated” designation.

Output The output of the program displays information by posting area on all postings made by the program. In addition, the external business transaction codes and the internal transactions controlling the updates are listed. The processing statistics show how many postings were created and how many postings could not be created due to an error.

Most banks will provide a document that explains the file layout of the BAI format and a list of all the transaction codes.

2.4.6 Lockbox Processing For information on this section, select the relevant items in the substructure.

2.4.6.1 Overview Banks offer lockbox service to help companies process incoming check payments. A company with a lockbox account asks its customers to send check payments to a post office box serviced by the bank. Bank personnel open the envelopes, deposit the checks, and enter data such as the check amount and the invoices being paid. The bank then transmits this data electronically to the company, in one of two formats: BAI or BAI2. The Bank Administration Institute defines these formats. In practice, the standards published by this organization are not followed strictly. Banks usually offer several variations of each format, including the BAI and BAI2 formats that R/3 reads. The BAI2 format is newer and contains more information than the BAI format. The main difference between the two formats is the invoice information associated with each check.

• BAI Check, amount, invoice, invoice,...



• BAI2 Check, amount, invoice_and_amount, invoice_and_amount, ...

The extra information on the BAI2 format allows better automatic matching of payments to customer open items when the data is imported. If automatic matching fails, your accounts receivable (A/R) clerk must manually clear the payments against open items. When importing a BAI format file, unless the check amount matches exactly the total open invoice amount in R/3 (or within configured payment difference tolerances), none of the invoices clear and the entire check enters R/3 either as an:

• “On account” posting (if the payment and invoice totals do not match)

• “Unprocessed” posting (if no customer account and no documents could be identified)

With BAI2 format files there is also a “partially applied” status. A check is partially applied when the import program can match and clear some, but not all, of the invoices within the check total. As a result, the hit rate—the percentage of matched invoices in each transmission—is higher with BAI2 than with BAI.

For a list of all lockbox-specific transactions and tables, see SAPNet – R/3 Frontend note 45436.

For more information on the BAI and BAI2 formats see the following documentation:

In the IMG, choose Financial Accounting → Bank Accounting → Business Transactions → Payment Transactions → Lockbox → Define control parameter

2.4.6.2 Customer Master Data The following fields need to be maintained in the customer master record in order to be able to use lockbox processing for this customer: • Bank Details

Here you maintain the customer’s MICR (Magnetic Ink Character Recognition) data: o Bank Key = the ABA routing number (American Bankers Association) of the bank o Bank Account = the customer’s account number at the bank

• Alternative Payer If a different customer pays the bills, you would enter the customer number of the paying customer in the Alternative payer field.

• Lockbox It is optional to assign a lockbox number to the customer master record. This indicator is accessed during customer billing in SD. The remit-to address on the invoice will use the address from the lockbox bank instead of the company’s address.

2.4.6.3 General Ledger Accounts Lockbox processing uses the following G/L accounts. There are field settings that have been maintained to enable proper A/R lockbox functioning. Description Relevant Settings Lockbox Account – Checks In This account will be cleared out through the electronic bank statement processing into the main Lockbox account.

Accounts Receivable - Lockbox Unapplied Cash This account records the receipt of customer payments.

Not tax-relevant Relevant to cash flow (to allow payments to clear items across an alternate payer worklist)

Over/Underpayments and Unallowed Deductions Not tax-relevant



Customer Discounts Not tax-relevant

2.4.6.4 Defining Lockboxes for House Banks

Use Your bank gives you a lockbox number. You can link this number to the appropriate house bank. It will include this in the transmitted files in a field of seven characters, right-justified, zero-padded left.


IMG path Financial Accounting → Bank Accounting → Bank Accounts → Define Lockboxes for House Banks


Assign your lockbox number to your company code and house bank.

2.4.6.5 Defining Posting Data

Use Here you store information needed to process particular lockbox data and generate postings.


IMG Menu Financial Accounting → Bank Accounting → Business Transaction → Payment Transactions → Lockbox → Define Posting Data

Transaction code OBAX

Your bank will include a Destination and Origin name pair in its transmissions file (BAI2 record type 1 and 5). The import program reads this information and uses it to look up the posting parameters defined here. The House bank and Account ID combination is important to define the currency of the file. If a house bank account is not specified, the currency of the file is assumed to be the currency of the company code.

2.4.6.6 Defining Control Parameters

Use In this activity you store control data for the lockbox procedure. Currently, only the procedure LOCKBOX is supported. This data is needed for importing lockbox files sent by banks. Currently, only BAI and BAI2 file formats are supported by SAP.


IMG path Financial Accounting → Bank Accounting → Bank Accounts → Payment Transactions � Lockbox � Define Control Parameters



Transaction code OBAY

BAI Format The Document number length defines the size of document number data fields in a BAI file. Data must be right justified, blank, or zero-padded left. The Num. of doc. Numbers in type x fields specify how the information on the invoices that are paid by a check is sent. The first 3 invoices go in a type 6 record. The remaining invoices go in type 4 records, up to 6 per record. Only the last record (per check) may have less than the maximum, in which case the fields are populated left to right.

BAI2 Format The BAI2 format settings are the same as BAI format settings. However, the Record format settings do not apply to BAI2 and are therefore left blank.

2.4.6.7 Worklist

Use It is common in the US to have customers that use an alternative payer. If this is the case, you must activate the automatic worklist for alternative payers.


IMG Menu Financial Accounting → Accounts Receivable and Accounts Payable → Customer Accounts → Line Items → Display Line Items → Display Line Items without ALV → Maintain Worklist


1. From the Maintain Worklists: Objects screen, select the object KUNNR.

2. Now choose Edit →→→→ Automatic worklist →→→→ Alternative payer.

3. Enter Display length 7 (length of customer number) and save your setting.

Result The system now automatically updates the worklist whenever an alternative payee is used. This then allows you to display and pay items that belong to different customers but are paid by one and the same customer.

2.4.7 Payment Program Since checks are the most commonly used payment method in the United States, the payment program must be configured accordingly. Within R/3, there are several ways of handling the check printing. In the sections below, we describe the steps required to configure the payment program using several payment options. In practice, you will not use them all, but the most common ones are described. There are two different ways of handling page overflow, as described below: Void overflow If you are paying more items than fit on the remittance portion of the check form, the system voids the check and continues printing on subsequent pages until all items have been printed. The last page will contain the valid check. Separate remittance advice



If you are paying more items than fit on the remittance portion of the check form, the system lists all items on a separate remittance advice (which can be sent to a different printer with plain paper). It prints the check with reference to the remittance advice for more details, which avoids wasting checks. In addition to these two methods of handling page overflow, you must choose the appropriate output type and print form: • prenumbered checks • unnumbered checks Of the four possible combinations, typically, you would only use one of the methods described above. We recommend that you delete the unused methods. In addition to the payment methods for checks, we recommend you also configure a payment method Z for ACH payments.

Configuring the Print Program To carry out this activity, choose:

Menu Financial Accounting → Accounts Receivable and Accounts Payable → Business Transactions → Outgoing Payments → Automatic Outgoing Payments → Payment Method / Bank Selection for Payment Program


2.4.8 Bank Selection / Setting Up the Payment Program IMG path Financial Accounting � Account Receivable and Accounts

Payable � Business transactions � Outgoing payments � Automatic outgoing payments � Payment method/Bank selection � Set up all Company Codes for Payment Transactions


Enter the appropriate company codes as the paying company and sending company.

Setting Up the Paying Company Codes for Payment Transactions Procedure To carry out this activity, choose:

IMG path Financial Accounting � Account Receivable and Accounts Payable� Business transactions � Outgoing payments � Automatic outgoing payments � Payment method/Bank selection � Set up the paying Company Codes for Payment Transactions


In this transaction you assign the appropriate SAPScript form used for the payment advice.

Setting Up Payment Methods per Country for Payment Transactions Procedure To carry out this activity, choose:

IMG path Financial Accounting � Account Receivable and Accounts Payable � Business transactions � Outgoing payments � Automatic outgoing payments � Payment method/Bank selection � Set up payment methods per country for payment transactions


Create four payment methods to handle the different check formats

Field name


LAND1 Country R US .



ZLSCH Payment method R 1 – Prenum/Void Overflow

2 – Prenum/Remit Overflow

3 – Unnum/Void Overflow

4 – Unnum/Remit Overflow

Payment method for

Outgoing payments

XSCHK Payment classification

Check

XZWHR Payment allowed for personnel payments

X

XSTRA Required master record specifications

Street, PO box, or PO box post code

PROGN Payment medium program

R RFFOUS_C

Create an additional payment method to handle bank transfers (ACH).

Field name


LAND1 Country R US .

ZLSCH Payment method R Z – ACH payment

Payment method for

R Outgoing payments

XSCHK Payment classification

R Bank transfer

XSTRA Required master record specifications

O Street, PO box, or PO box post code

XBKKT Required master record specifications

O Bank details

PROGN Payment medium program

R RFFOUS_T

Setting Up Payment Methods per Company Code for Payment Transactions Procedure To carry out this activity, choose:

IMG path Financial Accounting � Account Receivable and Accounts Payable � Business transactions � Outgoing payments � Automatic outgoing payments � Payment method/Bank selection � Set up payment methods per Company Code for payment transactions


Enter the appropriate SAPScript forms for checks and remittances for each of the payment methods you created.

Setting Up Bank Determination for Payment Transactions Use



In this activity, you make settings that the payment program uses to select the banks or bank accounts from which payment is to be made.


IMG Menu Financial Accounting � Account Receivable and Accounts Payable � Business transactions � Outgoing payments � Automatic outgoing payments � Payment method/Bank selection for Payment Program � Set up Bank Determination for Payment Transactions


Select the company code for the US and choose the Ranking Order folder from the left. Make the following settings:

Payment Currency Ranking Order House Bank 1 Check-Prenum/Void Overflow

USD 1 Your house bank

2 Check-Prenum/Remit Overflow


3 Check-Unnum/Void Overflow


4 Check-Unnum/Remit Overflow


Z USD 1 Your house bank

Select the Bank Accounts folder from the left and make the following settings:

House Bank

Payment Method

Currency Account Id

Bank Subaccount

Clearing Account

Change Ind

Business Area

Your house bank

1 USD CHECK (your subaccount)

Your house bank


Your house bank


Your house bank


Your house bank

T USD CHECK (your subaccount)

Select the Available Amounts folder from the left and make the following settings:

House Bank

Account Days Currency Available for Outgoing Payment

Scheduled Incoming Payment

BANKB CHECK 999 USD 999,999,999.000

Do not enter any values in the Value Date and Expense/Charges folders.

Assigning Payment Forms for Payment Method in Company Code Use It is necessary to assign the forms you created to each payment method defined for a company code.


IMG path Financial Accounting � Account Receivable and Accounts Payable � Business transactions � Automatic outgoing payments � Payment Media � Make Settings for Classic Payment Media � Assign Payment Forms for Payment Method in Company Code



Transaction code

Select the company code for the US.

Assign the appropriate forms for checks and remittance advices to each payment method.

Assigning Payment Medium Program for Payment Method in Country

Use In this activity, for each payment method you assign the classic payment medium program (RFFO*) that is used for creating payment media in that country.


IMG path Financial Accounting � Account Receivable and Accounts Payable � Business transactions � Outgoing Payments � Automatic outgoing payments � Payment Media � Make Settings for Classic Payment Media � Assign Payment Medium Program for Payment Method in Country

Transaction code

Select US and assign the program RFFOUS_C to the check payment methods and RFFOUS_T to the bank transfer payment method.

Defining Number Ranges for Checks Use The prenumbered checks are generally divided into lots to be able to print or fill them in at different locations. A check lot in the SAP System represents a stack of prenumbered checks.


IMG path Financial Accounting � Account Receivable and Accounts Payable � Business transactions � Outgoing Payments � Automatic outgoing payments � Payment Media � Check Management � Define number ranges for checks

Transaction code

Select the appropriate company code, house bank and account (checking). Create two lots, one for prenumbered checks and one for unnumbered checks.

2.4.9 Asset Management Integrated Asset Management allows customers to manage and analyze their fixed asset portfolios. To make the integrated functionality of this component available, the following items should be configured:

Asset classes most often used by U.S. customers.

Account determination assignments for asset acquisition, retirement, and depreciation postings

Depreciation areas according to U.S. GAAP and tax laws.

Depreciation keys according to the U.S. midmonth/midquarter convention.



2.4.9.1 Asset Classes Asset classes should be defined to facilitate the processing and reporting of assets for tax and financial purposes. Since the tax depreciation rules associated with fixed assets in the United States are largely dependent on the type of asset, the following asset classes should serve as a basis in your configuration: Asset Class* Description 1000 Land 1100 Buildings 1200 Land Improvements 1500 Leasehold Improvements 2000 Machinery 3000 Furniture, Fixtures, and Office Equipment 3100 Vehicles 3200 Computer Hardware 3210 Computer Software 4000 Assets Under Construction 4001 Assets Under Construction in Investment Measures 5000 Low Value Assets 6100 Leasing (Capital) 8200 Goodwill 9000 Tax-only and Negative Value Assets * The asset class numbers used here are for example purposes only. You are free to create your own numbering scheme.

2.4.9.2 Depreciation Areas

Use The standard delivered U.S. depreciation areas can be modified to fulfill the tax and financial depreciation requirements of U.S. companies. The suggested depreciation areas are listed below: Depreciation Area Description 01 Book depreciation in local currency 10 Federal tax ACRS/MACRS 11 Alternative minimum tax 12 Adjusted current earnings 13 Corporate earnings and profits 30 Consolidated balance sheet in local currency 31 Consolidated balance sheet in group currency

Procedure For configuration of the depreciation areas, choose the IMG menu path:

IMG path Financial Accounting � Asset Accounting � Valuation � Depreciation Areas � Define Depreciation Areas

Transaction code OADB

The configuration should include: Only depreciation area 01, book depreciation, posts to the G/L. Depreciation is only calculated, not

posted, for all other areas.

Acquisition and production costs are managed for all depreciation areas.

Positive net book value is allowed for all depreciation areas. Negative net book value is only allowed for depreciation area 01.

IMG path Financial Accounting � Asset Accounting � Valuation � Depreciation Areas � Specify Transfer of APC Values

Transaction code OABC



Transfer value rules should be modified to allow the federal tax basis (depreciation area Federal tax ACRS/MACRS) to differ from the book depreciation basis (depreciation area Book depreciation in local currency) for acquisition and production costs (APC). In addition, Alternative Minimum Tax, Adjusted Current Earnings, and Corporate Earnings & Profits should be modified to receive all relevant APC depreciation values from depreciation area Federal Tax ACRS/MACRS. Changes to APC values in these areas should not be allowed. In most cases, assets added under older tax regulations such as ACRS or ADR should be fully depreciated. However, in exceptional cases, such as in the steel or oil and gas industries, certain long-lived assets may still be depreciating under those regulations. In such cases, you may consider creating additional depreciation areas to manage those values.

IMG Menu Financial Accounting � Asset Accounting � Valuation � Fiscal Year � Use of Half-Months in the Company Code

Transaction code

The use of half periods is needed to represent the U.S. midquarter/midmonth prorate convention. With this requirement, it is important for the determination of depreciation whether an acquisition takes place in the first or the second half of a period. When you specify the use of half periods in the definition of an asset company code, half periods are automatically specified in all other company codes that use this fiscal year version. Half periods cannot be used with non-calendar fiscal months. The use of half periods cannot be reversed once the specification has been made. To ensure compliance with the U.S midquarter/midmonth requirements, period controls should be based on the fiscal year for the following calculation keys:

ACE ACE, S/L - half year - all lives

EP1 E&P S/L - half year - all lives

M150 MACRS 15, 20 year property

M200 MACRS 3, 5, 7, 10 year property

MCAR US Auto - limited base value

NA0 Alt Min Tax, 150% declining balance

NA2 Alt Min Tax, S/L - all lives except 40 Year

S175 SMACRS 10 years property

The following table shows the suggested depreciation controls that should be established for each asset class to comply with U.S. tax regulations and U.S. GAAP guidelines: Asset class

Deprec. Area

Depreciation Key

Useful life

1000 01 0000 50 10 0000 50 11 0000 50 12 0000 50 13 0000 50 30 0000 50 31 0000 50 1100 01 LINA 40 10 MSTL 39 11 NA1 40 12 ACM 40 13 EP2 40 30 LINA 40 1200 01 LINA 10 10 M150 15 11 NA0 20 12 ACM 20 13 EP2 20 30 LINA 10



31 LINA 10 1500 01 LINA 10 10 MSTL 39 11 NA1 40 12 ACM 40 13 EP2 40 30 LINA 40 31 LINA 40 2000 01 LINA 12 10 M200 7 11 NA0 12 12 ACE 12 13 EP1 12 30 LINA 12 31 LINA 12 3000 01 LINA 10 10 M200 7 11 NA0 10 12 ACE 10 13 EP1 10 30 LINA 10 31 LINA 10 3100 01 LINA 5 10 MCAR 5 11 NA0 5 12 ACE 5 13 EP1 5 30 LINA 5 31 LINA 5 3200 01 LINA 5 10 M200 5 11 NA0 5 12 ACE 5 13 EP1 5 30 LINA 5 31 LINA 5 3210 01 LINA 5 10 M200 3 11 NA0 3 12 ACE 3 13 EP1 3 30 LINA 5 31 LINA 5 4000 01 0000 10 0000 11 0000 12 0000 13 0000 30 0000 31 0000 4001 01 0000 10 0000 11 0000 12 0000 13 0000 30 0000 31 0000 5000 01 LVA 1 10 LVA 1



11 LVA 1 12 LVA 1 13 LVA 1 30 LVA 1 31 LVA 1 6100 01 LEAS 10 10 M200 10 11 NA0 10 12 ACE 10 13 EP1 10 30 LEAS 10 31 LEAS 10 8200 01 LINA 20 10 LINA 15 11 NA0 15 12 ACE 15 13 EP1 15 30 LINA 20 31 LINA 20 9000 01 0000 10 M200 11 NA0 12 ACE 13 EP1 30 0000 31 0000

2.4.9.3 Luxury Automobiles Per U.S. tax requirements (based on IRS Publication 53, 1998 Edition, Table 1A - MACRS 200%), depreciation expense for luxury automobiles is limited to a prescribed amount. Depreciation calculation key MCAR, is delivered with a limited base value, and should be used with a period control according to the fiscal year.

2.4.10 Materials Management For information on this section, select the relevant items in the substructure.

2.4.10.1 Units of Measure

Use The table below contains common US units of measure. The units of Measure listed should be flagged as a primary unit of measure and have an ISO code maintained. This is important for the use of EDI functionality.




IMG Menu General Settings � Check Units of Measure

Transaction code CUNI

Unit of Measure Primary Code ISO Code Area

ACRE X ACR

FT2 (SQUARE FOOT) X FTK IN2 (SQUARE INCH) X INK MI2 (MILE SQUARED) X MIK YD2 (SQUARE YARD) X YDK Dimensionless PAA (PAIR) X PAA Volume FT3 (CUBIC FOOT) X FTQ YD3 (CUBIC YARD) X YDQ FOZ (FLUID OUNCE US) X OZA GAL (GALLON, US) X GLL PT (PINT US) X PT QUART (QUART US) X QT IN3 (CUBIC INCH) X INQ

Mass

OZ (OUNCE) X ONZ

LB (POUND) X LBR TON (TON, SHORT) X STN

2.4.10.2 Defining Units of Measure Groups

Use Dozen is a common unit of measure in the US. It is beneficial to assign a conversion factor to Dozen.


IMG path Logistics - Generals � Material Master � Setting for key fields � Define units of measure groups

Transaction code OMS1

Field name


MEINH Alt unit R DZ

MSEHL Measure R Dozen

UMREZ Numerator R 12

UMREN Denominator R 1



2.4.10.3 Vendors For information on this section, select the relevant items in the substructure.

2.4.10.3.1 Defining Account Groups and Field Selection

Use There is a minimum of four account groups required for the US, which include Domestic Vendor, Foreign Vendor, One-Time Vendor, and Employee Vendor.


IMG path Logistics - Generals � Business partners� Vendors � Control � define account groups and field selection

Transaction code OMSG

The table below shows the RECOMMENDED field settings for small and mid-sized companies. Depending on your business processes, these settings may or may not be appropriate for you. However, the highlighted field settings are REQUIRED for companies doing business in the US.

*S=SUPPRESS, R=REQUIRED, O=OPTIONAL, D=DELETE

Domestic Vendor Foreign Vendor One-Time Vendor

Employee Vendor

Field S R O D S R O D S R O D S R O D

General-Address Name 1 X X X X Form of Address X X X X Search Term X X X X Name 2 X X X X Name 3, Name 4 X X X X Postal code, city X X X X Street X X X X Location X X X X Region X X X X P.O. Box X X X X P.O. Box Postal Code

X X X X

P.O. Box City X X X X Sort term B X X X X C/o name X X X X Street 2 X X X X Street 3 X X X X Street 5 X X X X Buildings X X X X Floor X X X X Room number X X X X Company postal code

X X X X

Comments X X X X Time Zone X X X X Delivery District X X X X Street 4 X X X X Retional structure grouping

X X X X



Alternative place of residence

X X X X

P.O. Box without number

X X X X

P.O. Box Country X X X X P.O. Box Region X X X X P.O. Box City X X X X


Employee Vendor


General Communication

Telex, ax, tel. X X X X Teletex X X X X Telebox X X X X Data line X X X X Standard comm. type

X X X X

Internet address X X X X Internet mail address

X X X X


General - Control Customer X X X X Corporate group X X X X Tax code 1 X X X X Sales equalization tax

X X X X

International location number

X X X X

Fiscal Address X X X X Industry X X X X VAT registration number

X X X X

Train Station X X X X Existing quality assur. Systems

X X X X

Authorization X X X X Trading Partner X X X X Reference Account Group (OTA)

X X X X

Tax Jurisdiction Code

X X X X

Tax Code 2 X X X X Taxes on Sales/Purchases

X X X X

Natural Person X X X X Person Subject to withholding Tax

X X X X

Carrier Details X X X X Transport Statistics X X X X Credit Information X X X X Transportation Zone

X X X X

Ext. Manufacturer X X X X Business Place X X X X



Tax Type X X X X Special Insurance X X X X Tax number 3 X X X X Tax Number 4 X X X X Tax Split X X X X Reduced Tax Base X X X X

Tax Categories X X X X


Employee Vendor


Payment Transactions

Bank Details X X X X Alternative Payee Account

X X X X

Alternative Payee in Document

X X X X

DME Details X X X X POR Subscriber Number

X X X X

Contact Person- Suppress all for all

Comp Code Data – Account Management

Reconciliation Account

X X X X

Cash Management Group

X X X X

Previous Account Number

X X X X

Sort Key X X X X Head Office X X X X Authorization X X X X Preference Indicator

X X X X

Minority Indicator X X X X Withholding Tax Code (1)

X X X X

Withholding Tax Exempt, withholding Tax 1

X X X X

Interest Calculation

X X X X

Withholding Tax Catalog Exempt Reason (1)

X X X X

Withholding Tax Country

X X X X

Personnel Number X X X X Release approval Group

X X X X

Gross Income Tax X X X X


Employee Vendor




Company Code Data-Payment Transactions

Terms of Payment X X X X Double Invoice Validation

X X X X

Payment Block X X X X Payment Methods X X X X Alternative Payee Account

X X X X

Clearing with Customer

X X X X

Bill of exchange Limit

X X X X

Cashed Checks Duration

X X X X

Invoice Verification Tolerance Group

X X X X

Tolerance Group X X X X House Bank X X X X Payment Advice via EDI

X X X X

Single Payment, group key, PM Supl.

X X X X

Credit Memo terms of Payment

X X X X

Alternative Payee in Document

X X X X

Company Code Data Corresp

Accounting clerk’s communication

X X X X

Dunning Data X X X X Local Processing X X X X Account at Vendor X X X X Accounting Clerks X X X X Users at Vendor X X X X Account Memo X X X X Bank Statement X X X X


Employee Vendor


Company Code Data – w/h tax data w/h tax 2 – all suppressed

Purchasing Data Purchase Order Currency

X X X X

Terms of Payment X X X X Incoterms X X X X Minimum order value

X X X X

Name, tel. (salesperson)

X X X X

ABC Indicator X X X X



Goods-Receipt-Based Inventory Verification

X X X X

Order Acknowledgement requirement

X X X X

Automatic Generated Purchase Order

X X X X

Vendor Schema Group

X X X X

Mode of Transport X X X X Office of Exit X X X X Control Pricing Date

X X X X

Evaluation Receipt Settlement Deli

X X X X

Purchasing Group X X X X Planned Del Time X X X X Price Marking X X X X Rack-jobbing X X X X PO entry; vendor X X X X


Employee Vendor


Purchasing Data, cont.

Pricing Hierarchy X X X X Free Goods X X X X Vendor sort criterion

X X X X

Confirmation Control Keys

X X X X

Returns with Shipping Process

X X X X

Units of Measure Group

X X X X

Rounding Profile X X X X Subsequent Settlement

X X X X

Subsequent Settlement Index

X X X X

Doc. Index Active X X X X Business Volume comparison/agrmnt nec.

X X X X

Order optimizing Restrictions

X X X X

Service Level X X X X Account with Vendor

X X X X

Evaluation Receipt Settlement. Returns

X X X X

Relevant to Agency Business

X X X X

PROACT control prof.

X X X X



New Value Method X X X X Shipping Conditions

X X X X

Service based invoice verif

X X X X

Purchasing Data – Partner Usage

Business Partner Assignment

X X X

Add. Purchasing Data (suppressed for all)

Purchasing Sub-range (suppressed for all)

Purchasing Plant (suppressed for all)

2.4.10.4 Tax Jurisdiction

Use Plants are required to have a tax jurisdiction code assigned to them unless their purchases are tax-exempt or they hold a resale certificate. Therefore, for simplicity, it is recommended to assign a default tax jurisdiction code to each plant.


IMG path Materials management � Logistics Invoice Verification � Define Tax jurisdiction


2.4.10.5 GR-Based IV, Reversal of GR Despite the Invoice

Use In GR-based invoice verification, it is common in the US to allow a reversal with reference to the purchase order or a return delivery to be entered, even if the invoice relating to the goods receipt document has already been posted.


IMG path Materials Management � inventory management � Goods Receipt � For GR-based IV, reversal of GR despite invoice

Transaction code OMBZ

Activate reversal for GR and PO reversal (102) and return to vendor (122).



2.4.10.6 Purchase Requisition Releases Release strategies are commonly used in the US. Configuring release strategies is a four-step process, which includes defining a document type to support release strategy, creating characteristics, creating a classes from the characteristics, and finally, assigning a release classification to the release procedure.

2.4.10.6.1 Defining Document Types

Use Header-level release strategies are commonly used in the US. Since SAP does not deliver a document type to support the header-level release strategy, it is necessary to create a document type to support this.


IMG path Materials management � Purchasing � Purchase requisition �Define document types

Transaction code OMEB

Create a new document type to support the header-level release strategy by copying document type NB with all dependencies and then choose the ‘OverRe’ box.

2.4.10.6.2 Creating Characteristics

Use In the procedure to release purchase orders and purchasing documents with classification, characteristics are used. Below are EXAMPLES of characteristics that are commonly created for release strategies.


SAP menu Logistics �Central Functions � Classification � Master Data � Characteristic

Transaction code CT04

All characteristics have restrictions of 02:release strategy and for requisition release strategies. • PLANT (Table Name: CEBAN, Field Name: WERKS) • MAT_GRP (Table Name: CEBAN, Field Name: MATKL) • ACCT_CAT (Table Name: CEBAN) • ITEM_VALUE (Table Name: CEBAN, Field Name: GSWRT)



2.4.10.6.3 Creating a Class

Use Characteristics need to be assigned to classes. Characteristics describe the objects classified in a class. Below are EXAMPLES of classes commonly used in the US, such as item-level release, and header-level release class.


SAP menu Logistics � Central Functions � Classification � Master Data � Class

Transaction code CL02

Create a class, for example, FRG_EBAN (item-level release) and assign some characteristics, for example:

PLANT

MAT_GRP

ACCT_CAT

ITEM_VALUE

Create a class, for example, FRG_EBAN_HEADER (header-level release) and assign some characteristics, for example:

PLANT

MAT_GRP

ACCT_CAT

2.4.10.6.4 Assigning the Classification to the Release Procedure

Procedure Use the following transaction code to set up a release strategy procedure.

IMG path Materials Management � Purchasing � Requisitions � Release Procedure � Procedure with Classification � Set up procedure with classification

Transaction code OMGQ

2.4.10.6.5 Purchase Orders Releases Release strategies are commonly used in the US. Configuring release strategies is a four-step process, which includes defining a document type to support release strategy (see Purchase Requisition Releases), creating characteristics, creating classes from the characteristics, and finally, assigning a release classification to the release procedure.



It is a common practice in the US to use a release procedure for purchase orders. Release procedures are often required for purchase orders over a certain amount or in combination with EDI technology. EDI technology allows documents to be automatically faxed to business partners.

2.4.10.6.6 Creating Characteristics

Use In the procedure for releasing purchase orders and purchasing documents with classification, characteristics are used. Below are examples of some characteristics that are commonly created for release strategies.


IMG path Materials Management � Purchasing � Purchase Order � Release Procedure for Purchase Orders � Edit Characteristic

Transaction code CT04

All characteristics have restrictions of 02:release strategy and for requisition release strategies. ORDER_TYPE (Table Name: CEKKO, Field Value: BSART) PO_VALUE (Table Name: CEKKO, Field Value: GNETW)

2.4.10.6.7 Creating a Class

Use Characteristics need to be assigned to classes. Characteristics describe the objects classified in a class. Below is an EXAMPLE of a class commonly used in the US, purchase order release class.


IMG path Materials Management � Purchasing � Purchase Order � Release Procedure for Purchase Orders � Edit Class

Transaction code CLO2

Create a class, for example, FRG_EKKO (Purchase Order Release) and assign some characteristics, for example: ORDER_TYPE PO_VALUE

2.4.10.6.8 Defining Release Procedure

Procedure Use the following transaction code to set up a procedure for the release strategy for purchase orders. To carry out this activity, choose:

IMG path Materials Management � Purchasing � Purchase Order � Release Procedure for Purchase Orders � Define Release Procedure for Purchase Order



Transaction code OMGS

2.4.10.7 Price Determination For information on this section, select the relevant items in the substructure.

2.4.10.7.1 Defining Condition Types

Use Tax Codes are required in the US. To simplify the determination of tax codes, it is recommended to set up the automatic determination of tax codes.


IMG path Materials Management � Purchasing �Conditions � Define Price Determination Process � Define Condition types

Transaction code M/06

Assign access sequence 0003 (tax classification) to condition type NAVS (non-deductible tax).

2.4.10.7.2 Defining Calculation Scheme

Use The US requires that the tax charges and freight charges appear as separate line items on purchasing documents. To facilitate this, changes to the purchasing scheme RM0000 (purchasing document – big) must be made. The procedure should be defined according to the table below.


IMG path Materials Management � Purchasing � Conditions � Define Price Determination Process � Define Calculation Schema

Transaction code M/08

Step Cntr Ctyp Desc Fro To Man Mdt Stat P SubT Reqt AltC ActC AltK Ac

1 1 PB00 Gross Price 9

1 2 PBXX Gross Price 9 5 2 0 VA00 Variants/Quantity 3 0 VA01 Variants % 4 0 GAU1 Orign Price of Gold X 31 5 0 GAU2 Actual Price of Gold 31 32 32 10 1 RB00 Discount (Value) X X 10 2 RC00 Discount/Quantity X X 10 3 RA00 Discount % on Net X X 10 4 RA01 Discount % on 1 X



Gross 10 5 HB00 Header

Surch.(Value) X X

10 6 ZB00 Surcharge (Value) X X 10 7 ZC00 Surcharge/Quantity X X 10 8 ZA00 Surcharge % on

Net X X

10 9 ZA01 Surcharge % on Gross

1 X X

10 10 HB01 Header Disc.(Value)

X X

10 11 RL01 Vendor Discount % 1 X 10 15 MM00 Minimum Qty

(Amount) X X

10 16 MM01 Minimum Qty (%) 1 X X 10 17 REST Account Discount % X 17 0 EDI1 Confirmed Price X 53 18 0 EDI2 Value Variance 53 40 20 0 Net Value S 7 21 1 NAVS Non-Deductible Tax X 60 21 2 NAVM Non-Deductible Tax X 29 24 0 Tax 21 23 S 25 0 Net including tax &

discount 20 23

31 1 FRA1 Freight % 20 X X FRE FR31 2 FRB1 Freight (Value) 20 X X FRE FR

31 3 FRC1 Freight/Quantity 20 X X FRE FR

31 4 RUE1 Neutral % Accruals 20 X X FRE RU

31 5 RUB1 Neutr.Accruals(Val.) 20 X X FRE RU

31 6 RUC1 Neutral Accruals/Qty

20 X X FRE RU

31 7 ZOA1 Customs % 20 X X FRE FR

31 8 ZOB1 Customs (Value) 20 X X FRE FR

Step Cntr Ctyp Desc Fro To Man Mdt Stat P SubT Reqt AltC ActC AltK Ac31 9 ZOC1 Customs/Quantity 20 X X FRE FR

31 10 FRA2 Freight % 20 X X FRE FR

31 11 FRB2 Freight (Value) 20 X X FRE FR

31 12 FRC2 Freight/Quantity 20 X X FRE FR

32 1 MAR1 Neutral % Accruals 20 X 12 FRE RU

35 1 SKTO Cash Discount 20 X 17

36 0 A001 Rebates 20 X 26 EIN B0

37 0 A002 Material Rebate 20 X 26 EIN B0

39 0 Freight/Customs 30 32 S

40 0 Actual Price 25 38 S

41 0 Total Amount 25 32 S

70 0 GRWR Statistical Value 20 X 8

75 0 GWLB Stat. Val. LB-Comp. X 54 60

79 0 Border crossing value

70 78 X C 8

The following entries must be deleted.



Step Cntr Ctyp Desc Fro To Man Mdt Stat P SubT Reqt AltC ActC AltK Accr

22 0 Net incl. Tax

20 21

38 0 A002 Material Rebate

20 X 26 EIN B01

2.4.11 Sales and Distribution For information on this section, select the relevant items in the substructure.

2.4.11.1 Shipping Information For information on this section, select the relevant items in the substructure.

2.4.11.1.1 Defining Incoterms

Use Incoterms can be used to calculate the shipping and handling costs on deliveries.


IMG path Sales and Distribution � Master Data � Business Partners � Customers � Billing Document � Define Incoterms

Transaction code OVSG

These are the most common methods used in the U.S.: Incoterms Description Location Mandatory AIR Airborn Express X EMY Emery World Wide X DHL DHL Worldwide Express X FED Federal Express X UPS United Parcel Service X USP United States Postal Service X Y2D 2-Day Deliver YOV Overnight Delivery YST Standard Delivery Based on the shipping method, the shipping & handling rate will be calculated upon order processing.



2.4.11.1.2 Creating Incoterm Rates

Procedure You must create a rate for each incoterm. To carry out this activity, choose:

IMG path

Transaction code VK31

2.4.11.2 Communication Preferences

Use It is important to maintain the customers’ preferences for methods of communication. Some typical types of communication or correspondence are:

Special offers, including notice of sales

New store openings

Important new store features

Contests

Other promotional announcements

Research surveys

New products similar to those the customers have purchased in the past

Legal notices about the terms and conditions of conducting business with us

Typical methods of communication are:

By both e-mail and postal mail

By e-mail only

By postal mail only

2.4.11.3 Prices and Taxes Pricing calculation must include tax calculation according to the US jurisdiction system. Please see



2.4.11.3.1 Pricing: Pricing Control

Defining and Assigning Pricing Procedures Maintaining Pricing Procedures

Use To determine the procedure, you allocate the customer determination procedure and the document pricing procedure to a pricing procedure within a sales area.


IMG path Sales and Distribution � Basic Functions � Pricing � Pricing Control � Define and Assign Pricing Procedures � Maintain Pricing Procedures

Transaction code V/08

Make sure that you have condition types for tax calculation as follow. In case of internal tax calculation: Step Condition Type Description 910 UTXJ Tax Jurisdiction Code 911 JR1 Tax Jurisdiction Code Level 1 912 JR2 Tax Jurisdiction Code Level 2 913 JR3 Tax Jurisdiction Code Level 3 914 JR4 Tax Jurisdiction Code Level 4 915 DIFF Rounding Off 919 Total Tax In case of external tax calculation: Step Condition Type Description 910 UTXJ Tax Jurisdiction Code 911 XR1 Tax Jurisdiction Code Level 1 912 XR2 Tax Jurisdiction Code Level 2 913 XR3 Tax Jurisdiction Code Level 3

914 XR4 Tax Jurisdiction Code Level 4 915 XR5 Tax Jurisdiction Code Level 5 916 XR6 Tax Jurisdiction Code Level 6 917 DIFF Rounding Off 919 Total Tax

2.4.11.4 Taxes For information on this section, select the relevant items in the substructure.



2.4.11.4.1 Creating SD Tax Conditions

Procedure You must create all relevant tax conditions for each state. To carry out this activity, choose:

IMG path

Transaction code VK11

For UTXJ Select Country/State/Customer Classif. 1/Material Classificaiton enter US for country and enter the following data (repeat all four entries for each US): Field Entry 1 Entry 2 Entry 3 Entry 4 Region <state> e.g. CA <state> e.g. CA <state> e.g. CA <state> e.g. CA TaxCl1Cust 0 1 0 1 TaxClMat. 0 1 1 0 Tax Code O0 O1 O0 O0

2.4.11.4.2 Credit Card Processing The most frequently used credit cards in the US must be maintained.

2.4.11.4.2.1 Maintaining Card Categories

Use You define number ranges for each card type. The system uses these ranges to automatically determine the category of a card when you enter a card number in the sales order. The system processes the card according to the card category.


IMG path Sales and Distribution � Billing � Payment Cards � Maintain Card Categories � Determine Card Categories � Define Incoterms

Transaction code

Type Seq. Option Paym. Cards from Payment cards to Cat. Description

AMEX 2 BT 3000 0000 0000 000 3999 9999 9999 999 01 Credit Card MC 3 BT 5000 0000 0000 0000 5999 9999 9999 9999 01 Credit Card VISA 1 BT 4000 0000 0000 0000 4999 9999 9999 9999 01 Credit Card



2.4.12 Appendix R/3 Screen Copy

Country key US USA Example shown for Jurisdiction code CA0000000 California. Note: The tax rates shown below are for illustration purposes only, and may not be current. [But all other 49 states need to be maintained too.] Tax code I0 A/P Sales Tax, exempt Procedure TAXUSJ Valid from 01/01/2001 Percentage rates Tax type AccKy Tax percent.rate Jurisdic.cde A/P Sales Tax 1 Inv. NVV 0.000 CA0000000 [all other 49 are the same] Tax code I1 A/P Sales Tax, taxable, distributed to line items A/P Sales Tax 1 Inv. NVV 6.000 CA0000000

.

AK0000000 0.000 AL0000000 4.000 AR0000000 4.500 AZ0000000 5.000 CA0000000 6.000 CO0000000 3.000 CT0000000 6.000 DC0000000 5.750 DE0000000 0.000 FL0000000 6.000 GA0000000 4.000 HI0000000 4.000 IA0000000 5.000 ID0000000 5.000 IL0000000 6.250 IN0000000 5.000 KS0000000 4.900

KY0000000 6.000 LA0000000 4.000 MA0000000 5.000 MD0000000 5.000 ME0000000 6.000 MI0000000 6.000 MN0000000 6.000 MO0000000 4.225 MS0000000 7.000 MT0000000 0.000 NC0000000 4.000 ND0000000 5.000 NE0000000 5.000 NH0000000 0.000 NJ0000000 6.000 NM0000000 5.000 NV0000000 6.500

NY0000000 4.000 OH0000000 5.000 OK0000000 4.500 OR0000000 0.000 PA0000000 6.000 RI0000000 7.000 SC0000000 5.000 SD0000000 4.000 TN0000000 6.000 TX0000000 6.250 UT0000000 4.875 VA0000000 3.500 VT0000000 5.000 WA0000000 6.500 WI0000000 5.000 WV0000000 6.000 WY0000000 4.000

Tax code O0 A/R Sales Tax, exempt A/R Sales Tax 1 MW1 0.000 CA0000000 [all other 49 are the same] Tax code O1 A/R Sales Tax, taxable A/R Sales Tax 1 MW1 6.000 CA0000000

AK0000000 0.000 AL0000000 4.000 AR0000000 4.500 AZ0000000 5.000 CA0000000 6.000 CO0000000 3.000 CT0000000 6.000 DC0000000 5.750 DE0000000 0.000 FL0000000 6.000 GA0000000 4.000 HI0000000 4.000 IA0000000 5.000 ID0000000 5.000 IL0000000 6.250 IN0000000 5.000 KS0000000 4.900

KY0000000 6.000 LA0000000 4.000 MA0000000 5.000 MD0000000 5.000 ME0000000 6.000 MI0000000 6.000 MN0000000 6.000 MO0000000 4.225 MS0000000 7.000 MT0000000 0.000 NC0000000 4.000 ND0000000 5.000 NE0000000 5.000 NH0000000 0.000 NJ0000000 6.000 NM0000000 5.000 NV0000000 6.500

NY0000000 4.000 OH0000000 5.000 OK0000000 4.500 OR0000000 0.000 PA0000000 6.000 RI0000000 7.000 SC0000000 5.000 SD0000000 4.000 TN0000000 6.000 TX0000000 6.250 UT0000000 4.875 VA0000000 3.500 VT0000000 5.000 WA0000000 6.500 WI0000000 5.000 WV0000000 6.000 WY0000000 4.000

Tax code U1 A/P Use Tax, taxable, self assessed A/P Sales Tax 1 Inv. NVV 6.000 CA0000000 A/P Sales Tax 1 Use MW1 100.000- CA0000000



AK0000000 0.000 AK0000000 0.000 AL0000000 4.000 AL0000000 100.000- AR0000000 4.500 AR0000000 100.000- AZ0000000 5.000 AZ0000000 100.000- CA0000000 6.000 CA0000000 100.000- CA0000000 6.000 CA0000000 100.000- CO0000000 3.000 CO0000000 100.000- CT0000000 6.000 CT0000000 100.000- DC0000000 5.750 DC0000000 100.000- DE0000000 0.000 DE0000000 0.000 FL0000000 6.000 FL0000000 100.000- GA0000000 4.000 GA0000000 100.000- HI0000000 4.000 HI0000000 100.000- IA0000000 5.000 IA0000000 100.000- ID0000000 5.000 ID0000000 100.000- IL0000000 6.250 IL0000000 100.000- IN0000000 5.000 IN0000000 100.000- KS0000000 4.900 KS0000000 100.000-

KY0000000 6.000 KY0000000 100.000- LA0000000 4.000 LA0000000 100.000- MA0000000 5.000 MA0000000 100.000- MD0000000 5.000 MD0000000 100.000- ME0000000 6.000 ME0000000 100.000- MI0000000 6.000 MI0000000 100.000- MN0000000 6.000 MN0000000 100.000- MO0000000 4.225 MO0000000 100.000- MS0000000 7.000 MS0000000 100.000- MT0000000 0.000 MT0000000 0.000 NC0000000 4.000 NC0000000 100.000- ND0000000 5.000 ND0000000 100.000- NE0000000 5.000 NE0000000 100.000- NH0000000 0.000 NH0000000 0.000 NJ0000000 6.000 NJ0000000 100.000- NM0000000 5.000 NM0000000 100.000- NV0000000 6.500 NV0000000 100.000-

NY0000000 4.000 NY0000000 100.000- OH0000000 5.000 OH0000000 100.000- OK0000000 4.500 OK0000000 100.000- OR0000000 0.000 OR0000000 0.000 PA0000000 6.000 PA0000000 100.000- RI0000000 7.000 RI0000000 100.000- SC0000000 5.000 SC0000000 100.000- SD0000000 4.000 SD0000000 100.000- TN0000000 6.000 TN0000000 100.000- TX0000000 6.250 TX0000000 100.000- UT0000000 4.875 UT0000000 100.000- VA0000000 3.500 VA0000000 100.000- VT0000000 5.000 VT0000000 100.000- WA0000000 6.500 WA0000000 100.000- WI0000000 5.000 WI0000000 100.000- WV0000000 6.000 WV0000000 100.000- WY0000000 4.000 WY0000000 100.000-