Account Determination in SAP

Manish Patel is a senior SAP professional with close to 20 years of experience in the IT industry. After graduating from Bombay University, Manish worked at an Indian software company on various financials projects in Asia Pacific. During his tenure at this company, he gained experience as a finance lead responsible for implementing the company's indigenously developed ERP system. After forming his solid foundation at this company in the various areas of software development and project management, he started his career as an SAP consultant. Over last 15 years, he has worked on variety of SAP projects in number of different industries. He has also conducted several successful SAP trainings at various training locations of SAP America. This breadth of assignments honed his abilities to successfully perform different roles in an SAP project ranging from system configuration to project management. He is also the author of a best selling book SAP Account Determination published by SAP Press, targeted at the technical and consulting SAP community. The book explores vital design elements that carry out automatic determination of GL accounts from business transactions in various SAP components. Manish enjoys working through the challenges and complexities that are inherent in implementation of such an enterprise wide system. He understands that experiences and aftereffects of such implementations can range from justifiably thrilling to maddeningly frustrating. Hence, he thrives in contributing to ease transition of SAP users into the new, integrated world of SAP.

1 Overview 15
1.1 Chart of Accounts 15
1.1.1 Operating Chart of Accounts 16
1.1.2 Country Chart of Accounts 17
1.1.3 Group Chart of Accounts 18
1.2 General Ledger Account Master 20
1.2.1 Account Group 20
1.2.2 P&L Statement Account or Balance Sheet Account 21
1.2.3 Group Account Number 21
1.2.4 Reconciliation Account for Account Type 21
1.2.5 Alternative Account Number 22
1.2.6 Open Item Management 22
1.2.7 Sort Key 22
1.2.8 Field Status Group 23
1.2.9 Post Automatically Only 23
1.2.10 Tax Category 24
1.2.11 Only Balances in Local Currency 24
1.2.12 Authorization Group 24
1.3 Account Determination Techniques 25
1.3.1 Transaction Key Technique 25
1.3.2 Symbolic Account Technique 28
1.3.3 Condition Technique 29
1.4 Summary 31
1.5 Reference 32
1.5.1 Configuration Transactions 32
1.5.2 Tables and Structures 32
2 General Ledger Transactions 35
2.1 Foreign Currency Transactions 35
2.1.1 Open Item General Ledger Accounts 37
2.1.2 Ending Balance General Ledger Accounts 38
2.1.3 Other Accounts Relevant to Foreign Currency 39
2.2 Other General Ledger Transactions 41
2.2.1 Retained Earnings 41
2.2.2 Intercompany Transactions 42
2.2.3 Account Receivable/Accounts Payable Reclassification 43
2.2.4 Bad Debt Reserve 45
2.2.5 Clearing Differences for GL Accounts 46
2.2.6 Subsequent Balance Sheet Adjustments 47
2.3 Accrual Transactions 49
2.3.1 Accrual Engine 49
2.3.2 Simple Account Determination 51
2.3.3 Extended Account Determination 52
2.4 Summary 53
2.5 Reference 54
2.5.1 Configuration Transactions 54
2.5.2 Tables and Structures 55
2.5.3 Enhancements 55
3 Accounts Receivable/Accounts Payable Transactions 57
3.1 Reconciliation Accounts 58
3.1.1 Primary Reconciliation Accounts 58
3.1.2 Alternative Reconciliation Accounts 59
3.1.3 Special Reconciliation Accounts 61
3.2 Basic Accounts Receivable/Accounts Payable Transactions 63
3.2.1 Vendor Discounts 64
3.2.2 Customer Discounts 67
3.2.3 Overpayments and Underpayments 67
3.2.4 Rounding Differences 69
3.2.5 Alternative Payment Currency 70
3.2.6 Bank Charges 71
3.2.7 Down Payments 71
3.3 Payment Card Accounts 72
3.3.1 Clearing House Account 73
3.3.2 Cash Clearing Account 74
3.3.3 Bank Account 75
3.4 Interest Calculation 75
3.4.1 Account Determination Objects 76
3.4.2 General Ledger Account Determination 78
3.5 Summary 80
3.6 Reference 80
3.6.1 Configuration Transactions 80
3.6.2 Tables and Structures 81
3.6.3 Enhancements 82
4 Tax Transactions 83
4.1 Account Determination Objects 84
4.2 General Ledger Account Determination 87
4.2.1 Tax Jurisdiction Code 88
4.2.2 External Tax Systems 89
4.2.3 Non-Taxable Transactions 90
4.2.4 Tax Calculation in Sales 90
4.2.5 Tax Calculation in Purchasing 92
4.3 Other Relevant Information 95
4.3.1 Tax Account Maintenance 95
4.3.2 General Ledger Account Attributes 96
4.4 Withholding Tax 97
4.4.1 Simple Withholding Tax 97
4.4.2 Extended Withholding Tax 98
4.5 Summary 100
4.6 Reference 100
4.6.1 Configuration Transactions 100
4.6.2 Tables and Structures 101
5 Bank Transactions 103
5.1 House Bank and Other Subaccounts 103
5.1.1 House Bank Account 103
5.1.2 Bank Subaccounts by Payment Method 104
5.2 Account Determination Objects 105
5.2.1 Internal Transaction Type 106
5.2.2 External Transaction Type 107
5.2.3 Interpretation Algorithm 108
5.2.4 Posting Rule 108
5.3 General Ledger Account Determination in Banking Processes 109
5.3.1 Electronic Bank Statement 109
5.3.2 Manual Bank Statement 112
5.3.3 Deposited Check Transactions 113
5.3.4 Lockbox Process 113
5.3.5 Payment Request Process 114
5.3.6 Cash Journal 116
5.4 Bill of Exchange Transactions 117
5.4.1 Bill of Exchange Receivable Transactions 117
5.4.2 Bill of Exchange Payable Transactions 120
5.5 Summary 121
5.6 Reference 121
5.6.1 Configuration Transactions 121
5.6.2 Tables and Structures 122
6 Asset Transactions 123
6.1 Account Determination Objects 123
6.1.1 Asset Class 124
6.1.2 Depreciation Area 125
6.1.3 Chart of Depreciation 127
6.1.4 Account Determination 128
6.1.5 Other Asset Accounting Objects 129
6.2 General Ledger Account Determination 131
6.2.1 Basic Transactions 133
6.2.2 Assets Under Construction Transactions 136
6.2.3 Other Depreciation Postings 137
6.2.4 Asset Revaluation Postings 139
6.2.5 Imputed Interest Calculation 140
6.2.6 Investment Support Transactions 140
6.3 Summary 143
6.4 Reference 143
6.4.1 Configuration Transactions 143
6.4.2 Tables and Structures 144
6.4.3 Enhancements 145
7 Travel Expense Transactions 147
7.1 Account Determination Objects 147
7.1.1 Infotypes 147
7.1.2 Features 148
7.1.3 Trip Provision Variant 150
7.1.4 TRVCT Feature 151
7.1.5 Personnel Area 152
7.1.6 Employee Trip 153
7.1.7 Expense Type 155
7.1.8 Wage Type 156
7.1.9 Symbolic Accounts 157
7.1.10 Payroll Area 159
7.2 General Ledger Account Determination 159
7.2.1 Reimbursement from Accounts Payable 160
7.2.2 Reimbursement from Travel Management 161
7.2.3 Reimbursement from Payroll 163
7.2.4 Reimbursement for Corporate Credit Card 164
7.2.5 Handling Private Expenses 165
7.2.6 Trip Advances to Employees 166
7.3 Summary 166
7.4 Reference 167
7.4.1 Configuration Transactions 167
7.4.2 Tables and Structures 167
8 Sales and Purchasing 169
8.1 Sales (Order-to-Cash) 170
8.1.1 Pricing Configuration 170
8.1.2 Technical Objects 172
8.1.3 Business Objects 176
8.1.4 Sales-Relevant Accounts 178
8.1.5 Revenue Recognition Accounts 180
8.1.6 Accrual Accounts 181
8.1.7 Reconciliation Accounts 183
8.2 Purchasing (Procure-to-Pay) 184
8.2.1 Pricing Configuration 184
8.2.2 Technical Objects 186
8.2.3 Business Objects 188
8.2.4 GL Account Determination 189
8.3 Summary 190
8.4 Reference 190
8.4.1 Configuration Transactions 191
8.4.2 Tables and Structures 192
9 Inventory Transactions 193
9.1 Material Valuation 193
9.1.1 How Materials Are Valuated 194
9.1.2 Controlling Object Assignments 195
9.2 Account Determination Objects 196
9.2.1 Stock Type 196
9.2.2 Geographical/Manufacturing Unit 197
9.2.3 Transaction Type 198
9.2.4 Additional Objects 199
9.2.5 Objects for Valuation Areas 200
9.2.6 Objects for Material Types 201
9.2.7 Objects for Movement Types 202
9.2.8 Transaction Keys 202
9.3 General Ledger Account Determination Procurement 204
9.3.1 Inventory Accounts (BSX) 204
9.3.2 GR/IR Clearing Account (WRX) 205
9.3.3 Purchasing Tax (VST) 206
9.3.4 Planned and Unplanned Delivery Costs 206
9.3.5 Price Variance Accounts 208
9.3.6 Other Differences in Logistics Invoice Verification 209
9.3.7 Foreign Currency transactions 210
9.3.8 Differences in Stock Transfer (AUM) 210
9.3.9 Consignment Process 211
9.3.10 Subcontracting Process 212
9.3.11 Volume Rebate Arrangements (BO1 BO3) 213
9.4 General Ledger Account Determination Revaluation and Other Accounts 214
9.4.1 Revaluation Revenue/Expense (UMB) 214
9.4.2 Work in Process Revaluation 214
9.4.3 Revaluation for Inflation 215
9.4.4 Cost Object Hierarchy Settlement 215
9.4.5 Inventory Offsetting Accounts (GBB) 216
9.4.6 Account Grouping Codes 217
9.5 Summary 220
9.6 Reference 220
9.6.1 Configuration Transactions 220
9.6.2 Tables and Structures 221
9.6.3 Enhancements 222
9.6.4 Account Modifier Matrix 222
10 Payroll Transactions 225
10.1 Account Determination Objects 226
10.1.1 Infotype 226
10.1.2 Feature 227
10.1.3 Wage Type 227
10.1.4 Payroll Schema 229
10.1.5 Payroll Components 230
10.1.6 Processing Class 231
10.1.7 Payroll Area 233
10.1.8 Symbolic Accounts 234
10.2 General Ledger Account Determination 236
10.2.1 General Ledger Accounts 237
10.2.2 Customer/Vendor Accounts 238
10.2.3 Technical Accounts 239
10.2.4 Symbolic Account Derivation 240
10.3 Other Transactions 241
10.3.1 Month-End Accruals 241
10.3.2 Bank Account Determination 243
10.4 Summary 243
10.5 Reference 244
10.5.1 Configuration Transactions 244
10.5.2 Tables and Structures 245
10.6 Conclusion 246
Appendices 247
A Field Status Group 249
A.1 An Overview 249
A.2 Field Status Group Configuration 252
B Validations and Substitutions 255
B.1 Validations 255
B.2 Substitutions 259
C The Author 263
Index 265