ASAP Methodology

Phase 1- Project Preparation

Big-Bang implementation or Phased Implementation

Project Steering Committee

Assign resources that would be required to work on the project Plan for proper working environment for project team Sign-off on certain acceptance forms Plan for hardware and location of shared resources within project room You need to size your system at least for the development servers

Phase 2- Business Blueprint business blueprint is a document that specifies all process requirements of client within the identified scope of the ASAP Project
You would need to conduct workshops with the concerned people in order to identify client business requirements and suggestions to improve the efficiency of the process System administrator activities starts here itself, so development system is ready with necessary user logins

Phase 3- Realization to implement all documented requirements in the Blueprint perform integration testing get system setup ready for productive operation This phase is subdivided into: The Baseline configuration Phase The Final Configuration Phase The Unit Testing Phase The Integration Testing Phase Phase 4- Final Preparation It allows SAP trained employees to complete what is left out of the scope of the project This phase also includes unit tests of developed processes Any problem found from such tests should be fixed in the system configuration before moving onto the next stage of the realization phase It requires to perform tests on cross-modular process. Any errors found in the process should be documented and fixed in this phase This phase can also be used to perform volume and stress tests or even tests on external interfaces on your configured system Phase 5- GO-Live and Support The purpose of this phase is to go productive with your production system, dismantle your existing system.

What is SAP Landscape? Landscape: is the arrangement for the servers DEVELOPMENT ---> QUALITY ASSURANCE (QA) ----> PRODUCTION DEVELOPMENT SERVER: is where the consultants do the customization as per the company's requirement. It will have 3 clients Clients: A) Sand Boxit is used to test out configuration ideas and theories at any time. B) Configuration (Golden) (Customizing Client)Once we are comfortable with configuration solution in the sand box recreate the same configuration in configuration client. In this client no transactions or testing should take place. Transport recording will be turned on here--It should be moved to development testing client c) Development-testinggenerally unit testing will be done in this clientIn some project they conduct integration testing also here. QUALITY ASSURANCE (QA) SERVER: Clients: A) Q/A testing Where all final testing is done here before moving to Production client. Normally here integration (end to end business process) testing and user acceptance testing (UAT) is conducted. b) Training clients-For giving training this client will be used PRODUCTION SERVER: is where the live data of the company is recorded.
Automatic Payment Program (APP): is used for paying the vendors. Most of the payments are done in Cheque. Automatic Clearing House (ACH) is also used widely for payments. Where ever ACH method of payment is done to the vendor, a Bank Key (given by the vendors bank to the vendor-similar to bank account number), along with Bank No. is also entered in Payment Transaction tab of vendor master. 1. Give the name of the proposal and run date 2. Give the parameters like company codes, vendors or Customers, payment methods etc...

3. Execute the proposal; the system will pick all the due or overdue items, for payment. 4. If any exception list with errors drill down the error, get it rectified and include them also in the payment List. 5. Finally we need to run the payment run which will clear the vendor open item and posts to bank clearing accounts. 6. We can take print of check, or send payment file DME 7. File or EDI file to bank. How do you configure the automatic payment program?

1) All Co. code for Payment transaction Define sending and paying company code. Tolerance days for payable Minimum % for cash discount Maximum cash discount Special GL transactions to be paid
2) Paying company code for payment transaction

3) Payment method per country

Minimum amount for outgoing payment No exchange rate diff Separate payment for each ref Bill/exchange payment

Whether Outgoing payment Check or bank transfer or B/E Whether allowed for personnel payment Required master data Doc types Payment medium programs Currencies allowed 4) Payment method per company code for payment transactions Set up per payment method and co. code The minimum and maximum amount. Whether Foreign currency allowed Customer/Vendor bank abroad allowed Attach the payment form check Whether payment per due day 5) Bank Determination for Payment Transactions

Rank the house banks as per the following Payment method, currency and give them ranking nos Set up house bank sub account (GL code) Available amounts for each bank House bank, account id, currency, available amount Value date specification

What u configure in accounts receivable module? A) Configuration of Accounts Receivable Module: Creation of Account Group. Creation of Number Range. Assignment of Number to the Account Group Creation of Payment Terms Creation of G/L Customer (Reconciliation A/C). Creation of Master record (Sub ledger) Creation of Special G/L for Customer (for Advance) Linking the Special G/L to Reconciliation A/C Dunning How do you go about configuring Asset accounting? The configuration steps in brief are as follows:a) Copy a reference chart of depreciation areas b) Assign Input Tax indicator for non-taxable acquisitions c) Assign chart of depreciation area to company code d) Specify account determination e) Define number range interval f) Define asset classes g) Define depreciation areas posting to general ledger h) Define depreciation key Asset accounting is based on 4 rules: 1. Sub asset master is to be created with reference to main asset master. 2. Main asset master is to be created with reference to asset class 3. Account determination is specified in asset class

4. For account determination we assign GL accounts based on the nature of transaction. How are Capital Work in Progress and Assets accounted for in SAP? Capital WIP is referred to as Assets under Construction in SAP and are represented by a specific Asset class. Usually depreciation is not charged on Capital WIP. All costs incurred on building a capital asset can be booked to an Internal Order and through the settlement procedure can be posted onto an Asset under Construction. Subsequently on the actual readiness of the asset for commercial production, the Asset under Construction gets capitalized to an actual asset. Accounting entry for sale of Asset to customers: Customer Account DR Asset Sale DR Accumulated Depreciation DR Loss on Sale (if applicable) DR Asset Sale account CR Asset account CR Profit on sale (if applicable) CR Note: In case of any Sales Tax /Excise duty applicable for this transaction, SAP will calculate the Sales Tax/Excise Duty based on the Tax Code selected the entry is posted to the GL Account (Sales Tax Payable) Accounting entry for sale without a customer: Accumulated Depreciation Loss on Sale (if applicable) Asset Sale account Asset account Profit on sale (if applicable) Accounting entry for scrap DR DR DR CR CR

Accumulated Depreciation DR Loss on Sale of Assets DR Asset account CR Sale of Scrap The sale of scrap (non-stock) shall be mapped as a direct manual FI entry. The customer will be created as a FI customer. No Logistics module will be involved in the process. A FI Invoice will be prepared for the sale of scrap with the following entries: Customer Sale of Scrap Excise Duty Payable Advances to the vendors Bank Account Advance Customer Payments Dr Cr Cr Dr Cr

Integration rules: A) B) In material master we specify valuation class For valuation class we assign GL accounts based on the nature of transaction

C) At the time of material receipt/Issue stores person enters movement type, material number and quantity. Our accounts will be updated automatically based on accounts assignment to valuation class which is specified in material master

There is a close integration b/w FI & MM, actually document flows from MM to FI in the following areas such as Movement Types: Used to enable the system to find the predefined posting rules determining how the accounts of financial accounting system are to be posted & to update the stock fields in the material master data. (Goods Receipt, Goods Issue, etc) Movement types: Similar to posting keys in FI 101 Material receipt against purchase order /production order 102/122 Reversal of 101 201 Issue to cost centers 202 Reversal of 201 261 Issue to orders 262 Reversal of 261 521 Production receipt without production orders. 522 Reversal of 521 561 Opening stocks taking 562 Reversal of 561 601 Delivery (sales) 602 Reversal of 601 Transaction/Event key: Used to control the storage or filing of documents & assignment of documents. Used to differentiate b/w various transactions such as goods movement that occur in inventory. a) BSX Inventory postings b) WRX Goods receipt /Invoice receipt (GR/IR) c) PRD d) GBB Price difference /Production order differences offsetting entry for inventory postings (I) VBR consumption (ii) VNG Scrapping (iii) BSA Opening stocks (iv) ZOF Production receipt without production order

(v) AUF Production receipt with production order (vi) VAY Delivery where sales account is created as revenue element (CO implemented) (vii) VAX Delivery where sales account is not created as revenue element (Co not implemented) (viii) AUA production order differences Material Type: Each material should assign material type in material master record used to update whether changes made in qty are updated in material master record & change in value also updated in stock account 1) Raw materials . 2) Stores & spares ROH ERSA

3) Packing & material VERP 4) Finishing goods FERT

5) Semi finished goods HALB 6) Trading goods 7) Services HAWA DIEN

FI-MM: The integration between FI-MM happens in T-code OBYC When PO is created: ---- No Entry ---- When GR is posted Inventory RM Account Dr (Transaction Key BSX in OBYC) To GR/IR account (T.Key WRX in T-code OBYC) Excise Invoice Verification RG 23 A / RG 23 C Part 2 Account Cenvat Clearing Account When Invoice is posted Inv GR/IR account Freight Clearing Account Cenvat Clearing Account To Vendor account Raw material consumption: RM consumption local Dr Dr Cr Dr. Dr Dr

To Inventory RM Account Production Receipt Inventory FG Dr To Inc/Dec in stocks FG

FI-SD Integration: The integration is done in T-code VKOA: 1. Sales Order Created ---No Entry--2. Delivery: Inc/Dec in stocks FG Dr To Inventory FG a/c 3. PGI done (Goods issue) Cost of Goods Sold Dr (Configured in OBYC GBB T-Key) To Inventory Account (Transaction Key BSX in OBYC) 4. Sales billing: Customer a/c Dr To Sales a/c

Bank reconciliation
The Bank reconciliation process is based on the entries passed through the Bank sub account and main account. The process is dependent on the Bank Statement received from the Bank that will be entered into SAP. Accounting rules are to be defined for each transaction type and posting rule for posting accounting entries as per bank statement. Bank statements to be uploaded (FF.5) into SAP. Configuration:
1. Creation of GL masters (FS00)(Main Bank a/c, Check issue a/c,

2. 3. 4. 5.

Check Deposit a/c, Bank charges a/c) Define House bank(FI12) Creation of Check lots (Tr code is FCHI) Define posting keys and posting rules for check deposit Create and assign business transactions (OT53) A) Check Deposit B) Check deposit clearing in bank reversal C) Check issue clearing in Bank D) Check issue clearing in bank (Reversal) E) Bank charges direct debit by bank F) Bank charges direct debit by bank (reversal)

6. Define variants for check deposit (OT45) 7. Create and assign business transactions for manual bank statement 8. Define variants for manual bank statement(OT43) End User Area: 1. Sales invoice posting (F-22) 2. Manual check deposit (FF68) 3. Check deposit credit in bank statement (FF67)

FLOW: Sales invoice posting F-22: Customer A/c Dr To Sales Check deposit IDBI Check deposit a/c To Customer with clearing If the check deposit credit comes in bank statement IDBI main bank A/c Dr To IDBI Check deposit a/c (With clearing)

Purchase invoice posting F-43 Inventory RM Dr To Party A/c Outgoing payment with clearing F-53 Party A/c Dr with clearing To IDBI check issue A/c If the check issue debit is there IDBI check issue Dr with clearing

To IDBI Bank a/c Bank charges direct debits Bank charges Dr

To IDBI main bank a/c

TABLES
BKPF- Header Data BSIS Open items

BSAS Cleared Items BSIK Account types General Data Company Code Data

GL master data SKA1 SKB1

Vendor master data LFA1 General Data LFB1 LFM1 LFM2 Company Code Data Purchasing organization data Purchasing data

Customer master data KNA1 General Data KNB1 KNVV Company Code Data Customer sales data

Material master data MARA General Data MARC Plant details (organization Data)

NEW GL Starts with FAGL FAGLFLEXT FAGLFLEXA Total table Line item