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  • What is SAP FICO?
  • SAP FICO Training Tutorials for Beginners
  • SAP FICO Define Account Group
  • SAP FICO Reverse Clearing Document
  • Foreign Currency Valuation Configuration
  • SAP FICO User Exit for Vendor Master
  • FICO Vendor Account Group Table
  • SAP FICO Withholding Tax
  • SAP FICO Dunning Area
  • SAP FICO Cash Management Group
  • Assessment Cycle vs Profit Center
  • SAP FICO Asset Accounting
  • SAP FICO Posting Key for Bank
  • SAP FICO Document Type
  • SAP FICO Document Number Ranges
  • SAP FICO Parked Workflow Configuration
  • SAP FICO Classic GL vs New GL
  • SAP FICO GL Account for Cash Journal
  • SAP FICO Accounts Receivable Process Cycle
  • SAP FICO Accounts Receivable Configuration
  • GR/IR Accounting Entries and Journal Entries
  • SAP FICO Chart of Accounts
  • SAP FICO Transaction Codes
  • SAP AS11 Create Asset Sub-Number
  • SAP Business Area and Profit Center
  • SAP Inconsistent Withholding Tax Info
  • SAP Active vs Passive Document Splitting
  • Reverse MIRO Document in SAP
  • SAP FICO Scope and Opportunity
  • FICO Certification Cost in India
  • SAP FICO Interview Questions
  • SAP FICO Tree Menu

What is Account assignment in SAP FICO ?

Updated Apr 01, 2023

Account assignment is a critical aspect of financial accounting and management in any organization. It refers to the process of allocating financial transactions to specific cost or profit centers, projects, or business processes. By properly assigning financial transactions to the appropriate account, organizations can accurately track their expenses, revenues, and profitability. This information can then be used to make informed decisions about resource allocation, cost control, and overall financial management. 

In SAP FICO, account assignment is a core module that offers various types of account assignment options, including cost center accounting, profit-center accounting, internal order accounting, and WBS element accounting. These options provide organizations with greater visibility into their financial performance, enabling them to optimize their operations and drive greater value for their stakeholders.

Types of  Account Assignment 

There are several types of account assignments in SAP FICO, including:

  • Cost center accounting 
  • Profit center accounting
  • Internal order accounting
  • WBS element accounting

i) Cost center accounting 

Cost center accounting is the process of tracking and analyzing costs associated with each department, function, or unit of an organization. SAP FICO provides a module that allows organizations to create and manage cost centers, allocate expenses, and generate reports to track performance.

By tracking expenses at a granular level, organizations can make informed decisions about resource allocation, identify areas of inefficiency, and make changes to improve overall performance, reducing costs and increasing efficiency.

ii) Profit center accounting

Profit center accounting is a process that allows organizations to track revenues and expenses at a granular level, providing insights into the profitability of individual business units, product lines, or geographic regions. By allocating revenues and expenses to specific profit centers, organizations can generate reports that help identify areas of high profitability or inefficiency.

SAP FICO provides a comprehensive profit center accounting module that enables organizations to create and manage profit centers, allocate revenues and expenses, and generate reports to analyze profitability. This information can be used to make informed decisions about product lines, investments, and resource allocation, enabling organizations to optimize their profitability and drive growth.

iii) Internal order accounting 

Internal order accounting is a process that allows organizations to track and control expenses associated with a specific project, event, or business process. By assigning costs to a specific internal order, organizations can monitor actual expenses versus budgeted expenses, and ensure that resources are allocated efficiently.

iv) WBS element accounting

WBS (Work Breakdown Structure) element accounting is a process that allows organizations to track and control expenses associated with a specific project or work breakdown structure. It involves breaking down large projects into smaller, manageable tasks or work packages, each of which is assigned a WBS element.

Expenses are then allocated to each WBS element to track actual versus planned expenses and ensure that resources are allocated efficiently.

Advantages of  Account Assignment 

The advantages of account assignment in SAP FICO include:

Better visibility: Account assignment allows organizations to track expenses and revenues at a granular level, providing better visibility into financial performance.

Resource allocation: By tracking expenses and revenues, organizations can make informed decisions about resource allocation, ensuring that resources are allocated efficiently.

Cost control: By identifying areas of inefficiency or waste, organizations can make changes to control costs and improve profitability.

Accurate reporting: Account assignment provides accurate reporting and analytics, enabling organizations to make informed decisions about their financial performance.

Compliance: Account assignment helps organizations comply with regulatory requirements and accounting standards.

How to Define Account Assignment?

Please follow the steps below to define the account assignment:

Execute t-code OKB9 in the SAP command field as shown in the image below.

OKb9

On Change View "Default account assignment": Overview you will see the list of default account assignments.

List

Next, click the  New Entries button to create a new account assignment.

New Enteries

In the next window, enter the following fields:

  • Cost Ctr 

Details

Now click on the Save button to save the new account assignment.

save

Now in order to post a test document to check that the account assignment works, execute t-code FB50 in the SAP command field.

Test

On the next popup enter Company Code as shown below.

Ccode

Now on the next window, click Tree On button.

Test

Next, select the Screen Variant in the next window and click Tree Off button.

Tree off

In the next window, enter the following fields according to your requirements:

Details

To make the document assignment, click the Post button.

Post

The account assignment is now defined and can be used for tracking expenses and revenues at a granular level in SAP FICO.

  • 04 Dec 2013 7:51 am rekha Account assignment is used in Sap Fico if you frequently use the same broad account assignments, such as a distribution of amounts to several company codes, accounts, or cost centers, you can use the account assignment model method to save input time and avoid input errors. The use of account assignment models is limited to G/L account items. T-code OK17 is used in the account assignment. If you have CO-FI real-time integration active you need this account assignment.

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ERProof » SAP CO » SAP CO Training » SAP CO Account Assignment

SAP CO Account Assignment

SAP CO Account Assignment

Normally, when a financial document is entered in SAP FI module , user has the option of entering the cost center in the financial document. However, when documents are entered from different modules or a cross-module financial transaction occurs, such as from MM or SD , there is no option of entering the cost center in the document. In this situation, the SAP system will derive the cost center through automatic SAP CO account assignment, substitutions, or through default settings made in the primary cost element.

Automatic SAP CO Account Assignment

The automatic account assignment has to be configured in the transaction code OKB9 . For posting made in external accounting, such as for price differences, exchange rate differences, etc., the SAP system automatically checks entries in the OKB9 settings and derives the cost center.

If you do not enter a CO object (order, cost center, or project) in external accounting postings made in FI, MM or SD modules and the posting is cost relevant, then the automatic account assignment checks the relevant cost center and makes the posting.

Here are examples of automatic account assignments:

  • Banking fees, exchange rate differences and discounts in FI
  • Minor differences and price differences in MM

The account assignment objects that can be maintained in the transaction OKB9 are:

  • Cost center
  • Profit center (profitability segment)

Normally, the automatic account assignment runs on the company code level along with the CO object. However, if the user wants to make the posting on the business area level, valuation area level or profit center level, it is also available in OKB9 settings. So basically it includes the following levels:

  • Company code level
  • Business area level
  • Valuation area level
  • Profit center level

The above 3 excluding the company code level are used in cases when the account assignment is needed below the company code level.

Prerequisites

Here are the prerequisites of activating automatic SAP CO account assignment:

  • Activation of the cost center accounting
  • Creation of cost centers
  • Maintenance of cost elements

Additionally, you can also create orders and profit centers as per the business requirements.

Settings in Transaction OKB9

Let’s discuss settings that are possible for automatic SAP CO account assignment in OKB9 transaction.

Start SPRO transaction and navigate to the following path:

Controlling – Cost Center Accounting – Actual Postings – Manual Actual Postings – Edit Automatic Account Assignment (OKB9)

Alternatively, you can start OKB9 transaction directly from the command bar.

Transaction OKB9 – SAP CO Account Assignment

  • If you want to have the setting on the company code level only, then enter the company code and the cost element along with the corresponding CO object, i.e. a cost center, an order or a profit center.
  • If you want to have the settings on the valuation area level, then enter the company code and the cost element and chose the ‘valuation area’ option in the account assignment detail as ‘1’.
  • Similarly, if you want to have the settings on the business area or profit center level, then choose the option ‘2’ or ‘3’ respectively.

If you have chosen account assignment detail ‘1’ or ‘2’, then click on ‘Detail per business area/valuation area’ on the left sidebar.

Transaction OKB9 – Details per Business Area / Valuation Area

Default SAP CO Account Assignment

In order to determine the correct CO account assignment, the SAP system performs several checks in the following sequence. First it checks the document which a user is posting. If the cost center is empty in the document, then the system checks if any substitutions are maintained for the particular G/L account . Next, if the substitution is also missing, then the system moves on to the OKB9 settings for automatic SAP CO account assignments. Finally, if these settings are also missing, the SAP system checks master data of the primary cost element (G/L Account) under the tab of Default Account Assignment . You can display this master data using the transaction KA03 .

You can maintain the cost center and the order in the master data of the primary cost element.

SAP Cost Element Master Data

So, basically the order of checks the system makes is:

  • Financial document – Cost center
  • Substitutions – transaction OKC9
  • Automatic account assignments – transaction OKB9
  • Default account assignments – transaction KA03 / KA02

Lastly, if any of the above is not maintained, then the SAP system throws an error ‘Account X requires an assignment to a CO Object’ and doesn’t allow posting of a document.

SAP CO Account Assignment using Substitution

In cases where you don’t need OKB9 or default account assignment, the user can go for user exits where a specific G/L account is mentioned under the company and the value in the cost center is substituted by the cost center given in the substitution.

The transaction for maintaining the substitution is GGB1 .

SAP Create Substitution Transaction

Usage of substitutions for SAP CO account assignment is justified by the business requirement and usually SAP CO account assignment requirements are fulfilled by OKB9 or default account assignments.

Did you like this tutorial? Have any questions or comments? We would love to hear your feedback in the comments section below. It’d be a big help for us, and hopefully it’s something we can address for you in improvement of our free SAP CO tutorials.

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4 thoughts on “SAP CO Account Assignment”

it is helpful material i ask for more clear details for using substitution method for Account Assignment. thanks in advance

Sir, I am not receiving the training mails from yesterday 7/1/2019. I have completed my training till here(SAP CO Account Assignment) please do send the rest of the training emails for SAP CO. Hope you will do the needful.

I am getting the same error “Account 500911 requires an assignment to a CO object”. In OKB9, we have given company code, Cost element and ticked the check box ‘Indicator: Find profitability segment using substitution’ (V_TKA3A-BSSUBST) and not filled anything like cost center, order and profit center. in OKC9 we have created substitution. All the process happening through Idoc Message Type SINGLESETTRQS_CREATE and inside BAPI BAPI_SINGLESETTREQS_CREATEMULT triggering and raising this error. Cost center is not maintained in 1. Financial document – Cost center 2. Automatic account assignments – transaction OKB9 and 3. Default account assignments – transaction KA03/KA02 But we have substitution in transaction OKC9 to determine cost centre.

Where woulbe be the issue?

good explanation

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  • Knowledge Base

SAP CO Account Assignment

  • Created 2021-09-19
  • Author SAP Online Tutorials
  • Category SAP CO

Welcome to the tutorial about  SAP CO Account Assignment . This tutorial is part of our free SAP CO training. You will learn how account assignment works in SAP ERP and what are different sources of information about account assignment that the SAP system uses.

Normally, when a financial document is entered in SAP FI module, user has the option of entering the cost center in the financial document. However, when documents are entered from different modules or a cross-module financial transaction occurs, such as from MM or SD, there is no option of entering the cost center in the document. In this situation, the SAP system will derive the cost center through automatic SAP CO account assignment, substitutions, or through default settings made in the primary cost element.

Automatic SAP CO Account Assignment

The automatic account assignment has to be configured in the transaction code  OKB9 . For posting made in external accounting, such as for price differences, exchange rate differences, etc., the SAP system automatically checks entries in the  OKB9  settings and derives the cost center.

If you do not enter a CO object (order, cost center, or project) in external accounting postings made in FI, MM or SD modules and the posting is cost relevant, then the automatic account assignment checks the relevant cost center and makes the posting.

Here are examples of automatic account assignments:

  • Banking fees, exchange rate differences and discounts in FI
  • Minor differences and price differences in MM

The account assignment objects that can be maintained in the transaction  OKB9  are:

  • Cost center
  • Profit center (profitability segment)

Normally, the automatic account assignment runs on the company code level along with the CO object. However, if the user wants to make the posting on the business area level, valuation area level or profit center level, it is also available in  OKB9  settings. So basically it includes the following levels:

  • Company code level
  • Business area level
  • Valuation area level
  • Profit center level

The above 3 excluding the company code level are used in cases when the account assignment is needed below the company code level.

Prerequisites

Here are the prerequisites of activating automatic SAP CO account assignment:

  • Activation of the cost center accounting
  • Creation of cost centers
  • Maintenance of cost elements

Additionally, you can also create orders and profit centers as per the business requirements.

Settings in Transaction OKB9

Let’s discuss settings that are possible for automatic SAP CO account assignment in  OKB9  transaction.

Start  SPRO  transaction and navigate to the following path:

Controlling – Cost Center Accounting – Actual Postings – Manual Actual Postings – Edit Automatic Account Assignment (OKB9)

Alternatively, you can start  OKB9  transaction directly from the command bar.

  • If you want to have the setting on the company code level only, then enter the company code and the cost element along with the corresponding CO object, i.e. a cost center, an order or a profit center.
  • If you want to have the settings on the valuation area level, then enter the company code and the cost element and chose the ‘valuation area’ option in the account assignment detail as ‘1’.
  • Similarly, if you want to have the settings on the business area or profit center level, then choose the option ‘2’ or ‘3’ respectively.

If you have chosen account assignment detail ‘1’ or ‘2’, then click on ‘Detail per business area/valuation area’ on the left sidebar.

Default SAP CO Account Assignment

In order to determine the correct CO account assignment, the SAP system performs several checks in the following sequence. First it checks the document which a user is posting. If the cost center is empty in the document, then the system checks if any substitutions are maintained for the particular G/L account. Next, if the substitution is also missing, then the system moves on to the  OKB9  settings for automatic SAP CO account assignments. Finally, if these settings are also missing, the SAP system checks master data of the primary cost element (G/L Account) under the tab of  Default Account Assignment . You can display this master data using the transaction  KA03 .

You can maintain the cost center and the order in the master data of the primary cost element.

So, basically the order of checks the system makes is:

  • Financial document – Cost center
  • Substitutions – transaction  OKC9
  • Automatic account assignments – transaction  OKB9
  • Default account assignments – transaction  KA03 / KA02

Lastly, if any of the above is not maintained, then the SAP system throws an error ‘Account X requires an assignment to a CO Object’ and doesn’t allow posting of a document.

SAP CO Account Assignment using Substitution

In cases where you don’t need  OKB9  or default account assignment, the user can go for user exits where a specific G/L account is mentioned under the company and the value in the cost center is substituted by the cost center given in the substitution.

The transaction for maintaining the substitution is  GGB1 .

Usage of substitutions for SAP CO account assignment is justified by the business requirement and usually SAP CO account assignment requirements are fulfilled by  OKB9  or default account assignments.

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Guru99

SAP FICO: What is, Introduction, Full Form & FICO Module

Ryan Bennett

What is SAP FICO?

SAP FICO is a module of SAP ERP which is used for financial reporting both externally and internally. The objective is to record all financial transactions that are posted by an entity and produce financial statements that are accurate at the end of the trading period. The SAP FICO full form is FI (Financial Accounting) and CO (Controlling).

This SAP FICO basics tutorial is going to explain SAP FICO overview and the major functionalities of the SAP FICO module.

SAP FI is made up of SAP FICO sub modules. The sub-modules that are often used are accounts receivables, accounts payables, asset accounting, general ledger Accounting and bank accounting.

All the sub modules are interlinked and integrate in real time. A trial balance can be extracted at an time and it will always balance because all the sub modules are connected. The diagram below shows the the integration between FICO SAP modules.

SAP FICO

General ledger accounting

All general ledger accounts that are used for reporting are managed through general ledger accounting. In SAP a set of all general ledger accounts used by a company or a group of companies is called a chart of accounts. These are the accounts that will be used for the preparation of financial statements. Most of the transactions are recorded in sub modules and they are reconciled with the general ledgers in real time. Transactions that can be done in direct in general ledger Accounting include journal vouchers which are posted to adjust or correct transactions. Reversals can also be done from general ledger accounting. Balances in general ledger accounts can be displayed and trial balances extracted from the system.

Accounts receivables

Accounts receivables in FICO SAP is a sub module that captures all transactions with customers and manages customer accounts. Separate customer accounts will be maintained and when transactions are posted in customer accounts, reconciliation accounts in general ledger are updated with the figures in real time. Transactions in accounts receivables include invoice posting, credit memo posting, down payments, invoice payment, dunning and executing customer reports.

Accounts payables

Accounts payables is a sub module that captures all transactions with vendors and manages vendor accounts. Separate vendor accounts are maintained and when transactions are posted in customer accounts, reconciliation accounts in general ledger are updated with the figures in real time. Transactions in accounts payables include invoice posting, credit memo posting, down payments, invoice payment, automatic payment program and executing vendor reports.

Asset accounting

Asset accounting in SAP FICO manages all transactions related to assets for an entity. When transactions are posted in asset accounts, reconciliation accounts in general ledger are updated in real time. Transactions in asset accounting include asset acquisition, asset retirement, asset sale, asset transfer, asset revaluation and asset depreciation.

Bank accounting

Bank accounting captures all transactions with the banks. Bank reconciliation is done to reconcile all transactions recorded on bank statements comparing them to transactions in the system.

All SAP FI sub-modules are integrated and transactions are updated in real time which means accurate financial statements can be extracted from the system at any time.

  • SAP FICO introduction: SAP FICO module is a module of SAP ERP which is used for financial reporting both externally and internally.
  • SAP FICO meaning: SAP Financial Accounting (FI) and Controlling (CO)
  • All general ledger accounts that are used for reporting are managed through general ledger accounting. In SAP a set of all general ledger accounts used by a company or a group of companies is called a chart of accounts.
  • Accounts receivables is a sub module that captures all transactions with customers and manages customer accounts.
  • Accounts payables is a sub module that captures all transactions with vendors and manages vendor accounts.
  • Asset accounting manages all transactions related to assets for an entity.
  • Bank accounting captures all transactions with the banks.
  • FD32 in SAP: Credit Control Area Tutorial
  • Step by Step Guide to Create Vendor Master Data in SAP
  • How to Create One Time Vendor FK01 in SAP
  • FB60 in SAP: How to post a Purchase Invoice
  • How to post a Purchase Return FB65 in SAP FI
  • How to post Outgoing Vendor Payment F-53 in SAP
  • Withholding Tax in SAP during Vendor Invoice & Payment Posting
  • How to perform Dunning: SAP F150

Defining General Ledger (G/L) Accounts and Cost Elements

After completing this lesson, you will be able to:

  • Define a G/L account

Chart of Account

what is assignment in sap fico

Each G/L is set up according to a chart of accounts. The chart of accounts contains the definitions of all G/L accounts. The definitions consist of the account number, the account name, and the type of G/L account (e.g. balance sheet, non operating expenses/revenues, primary costs/revenues, secondary costs or cash accounts).

Assignment of Company Codes to Chart of Accounts

A chart of accounts can be used by multiple company codes so that the general ledgers of these company codes have an identical structure.

General Ledger Account and Cost Element

The two segments of the G/L master record from a Financial Accounting perspective are as follows:

The chart of accounts segment contains a description of the account, the account type that classifies how the account can be used in FI and/or CO and, the account group that controls the company code segment fields, and the consolidation account number.

The company code segment contains values specific to how the company code will manage that account.

Account Groups

what is assignment in sap fico

Accounts with the same account group normally have similar business functions. You can, for example, have an account group for:

Cash accounts

Expense accounts

Revenue accounts

Other balance sheet accounts

The account groups are assigned number ranges. You can control which account numbers are permissible for cash accounts, expense accounts, and so on, through the number ranges.

Account groups also control the appearance of the company code segment of G/L accounts. Account groups control:

The fields that are required for data entry

The fields that are optional for data entry

The fields that are display only.

The fields that do not show up at all in the company code segment

Reconciliation Accounts

Expenditures versus costs.

In the economical theory, there are two approaches for values:

In the first approach, the values in Financial Accounting and Management Accounting are the same:

Controlling provides additional reporting opportunities by separating the FI documents along additional characteristics, such as segments, profit centers, projects, stored in a coding block. The results may be P&L statements and balance sheets per segment, per profit center or per project.

In the second approach (most used in central Europe), Management Accounting is based on cost and revenues. Costs are only those expenditures, which are as follows:

Related to the business of the company

Exactly assigned to periods (source specific)

For example, a gift to a welfare organization is an expenditure, but not a cost, because it is not the business of the company to make gifts.

Expenditures, which do not meet the definition of costs, are only reflected in Financials, and not in Management Accounting. They are called neutral expenditures.

SAP provides the opportunity to realize each of the theories. In SAP S/4HANA revenues, expenditures, and cost are represented by financial accounts and separated by the Account Type of the accounts. Based on the account type, the accounts used in CO are also called cost elements.

Account Types

what is assignment in sap fico

The controlling area-specific data is only needed for Secondary Costs and Primary Costs or Revenue accounts. In the controlling area-specific data, you assign a Cost Element category. This category determines which account can be used for which business transaction in CO.

Create a Primary Cost Account

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SAP FICO Enterprise Structure Setting and Configuration Steps

Sap fi enterprise structure settings.

Enterprise Structure :- The SAP Financial Accounting enterprise structure is an organizational structure representing an Enterprise Structure in SAP. Enterprise Structure is the key building block to the entire organization.

SAP Training Tutorials

Below are the Steps of Enterprise Structure Setting and configuration with screenshots

Define Company

Define Company Code

  • Assign Company Code to Company
  • Define Business Area
  • Define Functional Area

Define Credit Control Area

  • Assign Company Code to Credit Control Area

Step 1 :- Define Company

SAP Menu Path :- SPRO –> IMG –> Enterprise Structure –> Definition –> Financial Accounting –> Define Company

Transaction Code:- OX15

Step 2 :-   Define Company Code

 SAP Menu Path :- SPRO –> IMG –> Enterprise Structure –> Definition –> Financial Accounting –> Edit, Copy, Delete, Check Company Code

Step 3: – Assign Company Code to Company

  • Sap Menu Path :- SPRO –> IMG –> Enterprise Structure –> Assignment –> Financial Accounting –> Assign Company Code to Company
  •   Transaction Code:- OX16

Assign Company code to Company SAP

Step 4 :-  Define Business Area

  •  SAP Menu Path :- SPRO –> IMG –> Enterprise Structure –> Definition –> Financial Accounting –> Define Business Area
  • Transaction Code:- OX03

Define Business Area SAP

Step 5 :- Define Functional Area

 SAP Menu Path :- SPRO –> IMG –> Enterprise Structure –> Definition –> Financial Accounting –> Define Functional Area

Define Functional Area SAP

Step 6 :- Define Credit Control Area

  •   SAP Menu Path :- SPRO –> IMG –> Enterprise Structure –> Definition –> Financial Accounting –> Define Credit Control Area
  • Transaction Code:- OB45

Step 7 :- Assign Company Code to Credit Control Area

  • Sap Menu Path :- SPRO –> IMG –> Enterprise Structure –> Assignment –> Financial Accounting –> Assign Company Code to Credit Control Area

Assign Company Code to Credit Control Area

Read More for a complete SAP FICO module tutorial with real-time scenarios.

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Display sap mm-fi automatic account assignment.

SAP Press Salehttps://shrsl.com/43z0d

by John Jordan

JJ new

Table of Contents

Introduction, display obyc accounts with se16n, more information.

You use configuration Transaction OBYC to assign SAP General Ledger (GL) accounts in Financial Accounting (FI) to movement types in Materials Management (MM), also known as SAP MM-FI Automatic Account Determination or Assignment.

End users do not typically have the authorization to run configuration Transaction OBYC. 

You can easily display automatic account assignments as follows:

View table T030, which stores OBYC configuration settings, with Transaction SE16N.

Type in Table T030 and press Enter to display the selection screen shown in Figure 1.

41 001

Figure 1 : Table T030 Selection Screen To Display SAP MM-FI Configuration Settings

You restrict the table entries displayed on the subsequent results screen by making entries in the Selection Criteria section. To display G/L accounts posted during goods issues (GI) to production orders, make the following entries:

  • Chart of Accounts : Restrict your selection by your chart of accounts, INT in this example
  • Transaction : You display inventory movements with Transaction  GBB
  • Valuation Grouping Code : A group of company codes (set up with transaction OMWD)
  • Account modifier : VBR for GI to production orders
  • Valuation Class : You assign a valuation class in the Costing 2 view 

Click the execute icon to display the screen shown in Figure 2.

41 002

Figure 2 : Table T030 Entries Display SAP MM-FI Configuration Settings

This screen displays the G/L Accounts posted during goods issues to production orders.

For more information on entries in table T030, follow IMG menu path: 

Materials Management • Valuation and Account Assignment • Account Determination • Account Determination Without Wizard • Configure Automatic Postings

Figure 3 displays the menu path.

41 003

Figure 3 : Configure Automatic Postings Menu Path

Click the paper and glasses icon to the left of Configure Automatic Postings at the bottom to display standard SAP documentation on setting up automatic postings.

  

Activity Type

An activity type identifies activities provided by a cost center to manufacturing orders. The secondary cost element associated with an activity type identifies the activity costs on cost center and detailed reports

Alternative Hierarchy

While there can only be one cost center standard hierarchy, you can create as many alternative hierarchies as you like. You create an alternative hierarchy by creating cost center groups

Automatic Account Assignment

Automatic account assignment allows you to enter a default cost center per cost element within a plant with Transaction OKB9.

Condition Type

A condition type is a key that identifies a condition. The condition type indicates, for example, whether the system applies a price, a discount, a surcharge, or some other pricing, such as freight costs and sales taxes.

Cost Center Accounting

A cost center is a function within an organization that does not directly add to profit but still costs money to operate, such as the accounting, HR, or IT departments. The main use of a cost center is to track actual expenses for comparison to the budget.

Cost Estimate

A cost estimate calculates the plan cost to manufacture a product or purchase a component. It determines material costs by multiplying BOM quantities by the standard price, labor costs by multiplying operation standard quantities by plan activity price, and overhead values by costing sheet configuration.

Cost Object

An SAP Cost object such as a cost center or internal order describes where the cost occurs. A cost element or account describes what the cost is.

Costing Lot Size

The costing lot size in the Costing 1 view determines the quantity cost estimate calculations are based on. The costing lot size should be set as close as possible to actual purchase and production quantities to reduce lot size variance.

Goods Issue

A goods issue is the movement (removal) of goods or materials from inventory to manufacturing or to a customer. When goods are issued, it reduces the number of stock in the warehouse.

Goods Receipt

It is a goods movement that is used to post goods received from external vendors or from in-plant production. All goods receipts result in an increase of stock in the warehouse.

Internal Order

An internal order monitors costs and revenue of an organization for short- to medium-term jobs. You can carry out planning at a cost element and detailed level, and you can carry out budgeting at an overall level with availability control.

Production Variance

Production variance is a type of variance calculation based on the difference between net actual costs debited to the order and target costs based on the preliminary cost estimate and quantity delivered to inventory. You calculate production variance with target cost version 1.

Profit Center

A profit center receives postings made in parallel to cost centers and other master data such as orders. Profit Center Accounting (PCA) is a separate ledger that enables reporting from a profit center point of view. You normally create profit centers based on areas in a company that generate revenue and have a responsible manager assigned.

If PCA is active, you will receive a warning message if you do not specify a profit center, and all unassigned postings are made to a dummy profit center. You activate profit center accounting with configuration Transaction OKKP, which maintains the controlling area.

Purchasing Info Record

A purchasing info record stores all of the information relevant to the procurement of a material from a vendor. It contains the Purchase Price field, which the standard cost estimate searches for when determining the purchase price.

Scheduling Agreement

A scheduling agreement is a longer-term purchase arrangement with a vendor covering the supply of materials according to predetermined conditions. These apply for a predefined period and a total purchase quantity.

Standard Hierarchy

A standard hierarchy represents your company structure. A standard hierarchy is guaranteed to contain all cost centers or profit centers because a mandatory field in cost and profit center master data is a standard hierarchy node.

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Standard Price

The standard price in the Costing 2 view determines the inventory valuation price if price control is set at standard (S). The standard price is updated when a standard cost estimate is released. You normally value manufactured goods at the standard price.

You can apply surcharges to material prices and activity prices in order to take into account increases or decreases in item prices over time when calculating the lifecycle costs for a project.

Target Costs

Target costs are plan costs adjusted by the delivered quantity. For example, if the quantity delivered to inventory is 50% of the plan quantity, target costs are calculated as 50% of the plan costs.

Material Master

A material master contains all of the information required to manage a material. Information is stored in views, and each view corresponds to a department or area of business responsibility. Views conveniently group information together for users in different departments, for example, sales and purchasing.

Origin Group

An origin group separately identifies materials assigned to the same cost element, allowing them to be assigned to separate cost components. The origin group can also determine the calculation base for overhead in costing sheets.

Price Control

The Price control field in the Costing 2 view determines whether inventory is valuated at standard or moving average price.

The price unit is the number of units to which the price refers. You can increase the accuracy of the price by increasing the price unit. To determine the unit price, divide the price by the price unit.

Process Order

Process orders are used for the production of materials or provide services in a certain quantity and on a certain date. They allow resource planning, process order management control, and account assignment and order settlement rules to be specified.

Procurement Alternative

A procurement alternative represents one of a number of different ways of procuring a material. You can control the level of detail in which the procurement alternatives are represented through the controlling level. Depending on the processing category, there are single-level and multilevel procurement alternatives. For example, a purchase order is single-level procurement, while production is multilevel procurement.

Production Order

A production order is used for discrete manufacturing. A BOM and routing are copied from master data to the order. A sequence of operations is supplied by the routing, which describes how to carry out work-steps. An operation can refer to a work center at which it is to be performed. An operation contains planned activities required to carry out the operation. Costs are based on the material components and activity price multiplied by a standard value.

Product Drilldown Reports

Product drilldown reports allow you to slice and dice data based on characteristics such as product group, material, plant, cost component, and period. Product drilldown reports are based on predefined summarization levels and are relatively simple to setup and run.

Production variance is a type of variance calculation based on the difference between net actual costs debited to the order and target costs based on the preliminary cost estimate and quantity delivered to inventory. You calculate production variance with target cost version 1. Production variances are for information only and are not relevant for settlement.

Production Version

A production version determines which alternative BOM is used together with which task list/master recipe to produce a material or create a master production schedule. For one material, you can have several production versions for various validity periods and lot-size ranges.

Purchase Price Variance

When raw materials are valued at the standard price, a purchase price variance will post during goods receipt if the goods receipt or invoice price is different from the material standard price.

Profitability Analysis

Costing-based profitability analysis enables you to evaluate market segments, which can be classified according to products, customers, orders (or any combination of these), or strategic business units, such as sales organizations or business areas concerning your company’s profit or contribution margin.

SAP Profit Center is a management-oriented organizational unit used for internal controlling purposes. Segmenting a company into profit centers allows us to analyze and delegate responsibility to decentralized units.

A purchasing info record stores all the information relevant to the procurement of a material from a vendor. It contains the Purchase Price field, which the standard cost estimate searches for when determining the purchase price.

Raw Materials

Raw materials are always procured externally and then processed. A material master record of this type contains purchasing data but not sales.

A routing is a list of tasks containing standard activity times required to perform operations to build an assembly. Routings, together with planned activity prices, provide cost estimates with the information necessary to calculate labor and activity costs of products.

Sales and Operations Planning

Sales and operations planning (SOP) allows you to enter a sales plan, convert it to a production plan, and transfer the plan to long-term planning.

S&OP is slowly being replaced by SAP Integrated Business Planning for Supply Chain (SAP IBP), which supports all S&OP features. S&OP is intended as a bridge or interim solution, which allows you a smooth transition from SAP ERP to on-premise SAP S/4HANA and SAP IBP. See SAP Note 2268064 for details.

SAP Fiori is a web-based interface that can be used in place of the SAP GUI. SAP Fiori apps access the Universal Journal directly, taking advantage of additional fields like the work center and operation for improved variance reporting.

Work in process (WIP) and variances are transferred to Financial Accounting, Profit Center Accounting (PCA), and Profitability Analysis (CO-PA) during settlement. Variance categories can also be transferred to value fields in CO-PA.

Settlement Profile

A settlement profile contains the parameters necessary to create a settlement rule for manufacturing orders and product cost collectors and is contained in the order type.

Settlement Rule

A settlement rule determines which portions of a sender’s costs are allocated to which receivers. A settlement rule is contained in a manufacturing order or product cost collector header data.

You need setup time to prepare equipment and machinery for the production of assemblies, and that preparation is generally the same regardless of the quantity produced. Setup time spread over a smaller production quantity increases the unit cost.

Simultaneous Costing

The process of recording actual costs for cost objects, such as manufacturing orders and product cost collectors in cost object controlling, is called simultaneous costing. Costs typically include goods issues, receipts to and from an order, activity confirmations, and external service costs.

Source Cost Element

Source cost elements identify costs that debit objects, such as manufacturing orders and product cost collectors.

Source List

A source list is a list of available sources of supply for a material, which indicates the periods during which procurement is possible. Usually, a source list is a list of quotations for a material from different vendors.

You can specify a preferred vendor by selecting a fixed source of supply indicator. If you do not select this indicator for any source, a cost estimate will choose the lowest cost source as the cost of the component. You can also indicate which sources are relevant to MRP.

The standard price in the Costing 2 view determines the inventory valuation price when price control is set at standard (S). The standard price is updated when a standard cost estimate is released. You normally value manufactured goods at the standard price.

Subcontracting

You supply component parts to an external vendor who manufactures the complete assembly. The vendor has previously supplied a quotation, which is entered in a purchasing info record with a category of subcontracting.

Tracing Factor

Tracing factors determine the cost portions received by each receiver from senders during periodic allocations, such as assessments and distributions.

Universal Journal

The efficiency and speed of the SAP HANA in-memory database allowed the introduction of the Universal Journal single line-item tables ACDOCA (actual) and ACDOCP (plan). The Universal Journal allows all postings from the previous financial and controlling components to be combined in single items. The many benefits include the development of real-time accounting. In this book, we discuss both period-end and event-based processing.

Valuation Class

The valuation class in the Costing 2 view determines which general ledger accounts are updated as a result of inventory movement or settlement.

Valuation Date

The valuation date determines which material and activity prices are selected when you create a cost estimate. Purchasing info records can contain different vendor-quoted prices for different dates. Different plan activity rates can be entered per fiscal period.

Valuation Grouping Code

The valuation grouping code allows you to assign the same general ledger account assignments across several plants with Transaction OMWD to minimize your work. The grouping code can represent one or a group of plants.

Valuation Type

You use valuation types in the split valuation process, which enables the same material in a plant to have different valuations based on criteria such as batch. You assign valuation types to each valuation category, which specify the individual characteristics that exist for that valuation category. For example, you can valuate stocks of a material produced in-house separately from stocks of the same material purchased externally from vendors. You then select procurement type as the valuation category and internal and external as the valuation types.

Valuation Variant

The valuation variant is a costing variant component that allows different search strategies for materials, activity types, subcontracting, and external processing. For example, the search strategy for purchased and raw materials typically searches first for a price from the purchasing info record.

Valuation Variant for Scrap and WIP

This valuation variant allows a choice of cost estimates to valuate scrap and WIP in a WIP at target scenario. If the structure of a routing is changed after a costing run, WIP can still be valued with the valuation variant for scrap and WIP resulting in a more accurate WIP valuation.

Valuation View

In the context of multiple valuation and transfer prices, you can define the following views: – Legal valuation view – Group valuation view – Profit center valuation view

Work Center

Operations are carried out at work centers representing; for example, machines, production lines, or employees. Work center master data contains a mandatory cost center field. A work center can only be linked to one cost center, while a cost center can be linked to many work centers.

Work in Process

Work in process (WIP) represents production costs of incomplete assemblies. For balance sheet accounts to accurately reflect company assets at period end, WIP costs are moved temporarily to WIP balance sheet and profit and loss accounts. WIP is canceled during period-end processing following delivery of assemblies to inventory.

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Define Functional Area in SAP | Create Functional Area

How to define functional area in sap fico.

The following SAP tutorials explains how to define functional area in SAP financial accounting step by step based on real time business scenarios.

Before referring this configuration steps, we recommend to read how to define company code in SAP and how to create business area in SAP .

What is Functional Area?

In SAP , functional area is an organizational unit that sorts operating expenses incurred based on the activities. For example Production, Administration, sales, research & development, etc.

  • Functional areas allows to create financial statements to meet the US GAAP requirements.
  • If the organization  is following cost of sales accounting, it is mandatory to create functional area in SAP and properly assign in various master data.
  • G/L account
  • Cost element
  • Cost center
  • WBS elements, etc.

Scenario: – In this configuration, we are going to define the following functional areas in order to meet the organizational requirements.

You can define functional area in SAP by using any one of navigation method or transaction code.

  • SAP Menu Path: – SPRO – IMG – Enterprise Structure – Definition – Financial Accountin g – Define functional Area
  • T – code: – OKBD , FM_FUNCTION
  • Database Table: – TFKB , TFKBT .

Step 1) Enter transaction code “FM_FUNCTION” in the sap commend filed and enter to continue.

what is assignment in sap fico

Step 2) From process functional area screen, enter the four digits key that identities functional area in SAP and click on create functional area button to define the functional areas as per the organizational requirements.

what is assignment in sap fico

Step 3) Now update description of functional area.

Define Functional Area in SAP

Step 4) Click on save button and save the configured functional area details. You get a message as “Functional area TK11 has been saved.

what is assignment in sap fico

Successfully we have created new functional area “TK11” in SAP system.

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Document Splitting in SAP FICO (S4 HANA Finance)

Published by pradeep on may 27, 2019 may 27, 2019.

Last Updated on July 16, 2022 by Pradeep

What is Document Splitting in SAP?

Document Splitting in SAP is the new functionality introduced in SAP ECC 6.0 New GL t o create segment financial statements. However, now it is mandatory in SAP S/4HANA technology. It is used to allocate one expense line item into two segments in New General Ledger.

Here, you cover the SAP FI Document split and the Segment via “segment field” which is a standard field in the totals table in the New General Ledger “FAGLFLEXT.

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Before we start ahead, I need to mention, that the functionality of Document Splitting in SAP FICO and S/4HANA Finance is the same. Hence, either if you are working on ECC technology or S/4HANA, its process will remain the same. So, let’s start the learning of Document splitting in SAP.

How to activate Document Splitting in SAP S/4HANA Finance?

  • To activate document splitting in SAP, first, you need to enable Document splitting at the client level customizing.
  • Then you can activate or deactivate the document splitting in each company code .
  • By activating inheritance you can create a customer invoice from a revenue line item.
  • As a result, the Business areas or segments populate automatically in the general ledger view. It shows the customer and tax line items.
  • Noteworthy, SAP recommends activating ‘Inheritance” with document splitting. Since it does not require the business to then create “rules” for a business process to ensure that account assignments are projected.

Read: SAP FICO Interview Questions Blog Series

Active and Passive Splitting in SAP New GL

Document splitting in SAP New GL is divided into two types. The Passive Split and the Active Split (rule-based) or Clearing Lines by the document.

Passive Splitting

With passive document splitting , the system inherits the account assignments of the items to clearing line items during the clearing of a document.

Active Splitting

Active splitting works on the principle of defining splitting rules. You configure splitting rules which the SAP system uses to make a document split.

Document splitting is one of the Key functionalities enabled in SAP New GL to help deliver segmented financial statements.

Get Details: SAP S4 HANA Finance Training

Document splitting under Profit Center Accounting

As per the New GL Profit Center Accounting (PCA), there are two entry-views. The Entry view and The General Ledger view.

You can find the SAP New GL document splitting under the General Ledger view.

Understand this with an example:-

Material purchased for two different profit centers under one invoice.

Expenses A/c (Dr) Rs. 100 (Profit Center 1)

Expenses A/c (Dr) Rs.100 (Profit Center 2)

To Vendor A/c   (Cr)    Rs. 200

In General Ledger View

Expenses A/c (Dr) Rs.100 (Profit Center 1)

To Payable A/c (Cr) Rs.100 (Profit Centers 1)

To Payable A/c (Cr) Rs.100 (Profit Centers 2)

Benefits of Documents Splitting in SAP

  • If you see the general ledger view, you can find the object of document splitting. While, under the Business Area concept , you cannot find this facility.
  • Likewise, Document Splitting allows you to display documents using a differentiated representation. In the representation, line items are split according to the dimensions you choose. Thus, you can draw up complete financial statements with those dimensions at any time.
  • Furthermore, using the document splitting procedure, you can also create a segmented display of a (Partial) balance sheet. Either according to a set of legal requirements (For Example IAS) or according to areas of responsibility.
  • In addition, you can allocate additional costs to the controlling account assignment objects at the time of posting. Such as realized or evaluated exchange rate differences. This is to which the costs relate.
  • Subsequently, you can also capitalise on an asset at the time of posting.

Document Splitting Implementation

Consider the following points:

  • Make settings in Customizing and other preparations for document splitting.
  • Use the General Ledger Migration cockpit. (If you are already using new General Ledger Accounting in your production system and subsequently want to implement document splitting).

Document Splitting Integration

Document splitting affects subsequent processes, such as closing operations and processes in Controlling (CO) .

Further, you can use the document splitting procedure in two situations. First, to split up line items for selected dimensions (such as receivables lines by profit center). Second, to effect a zero balance setting in the document for specified dimensions (such as segment).

Thus, it generates additional clearing lines in the document.

Document Splitting Process

To do the document splitting successfully, the system classifies the individual line items as well as the documents. This takes place using your settings in Customizing.

Moreover, the splitting rule selected for a document specifies the process and line items to split the document. It also depends on how the system classifies a document.

Although, SAP delivers a set of standard splitting rules. However, you can also define your own rules.

Passive document splitting

The system creates references to existing account assignments. You use these account assignments as the base for line items to split.

The system applies all account assignments that you define as document splitting characteristics in customizing.

If you have set zero Balance settings indicator for the document splitting characteristic, the system then creates any necessary clearing lines. This is to ensure that the characteristics produce a balance of zero in each document.

Active Document Splitting

If you split a document in this subfunction, the line items are split according to the settings in customizing. This is the classification of the document and the splitting rule assigned to the document.

Subsequent Process- You can also use CO account assignment relating to the costs for the clearing process. Such as while realizing the exchange rate differences, you can use CO account assignments to post the difference in the rates occurring in this subsequent process.

Closing Operation

You can perform closing operations according to the document splitting characteristics defined. An example of this is Foreign Currency Valuation.

Document Splitting Simulation

During document entry, you can simulate the postings you want to generate. From the simulation in the general ledger view, you can call the expert mode. Further, in the expert mode, you can obtain detailed information about the split document as well as about the document splitting rules applied.

Therefore, it allows you to view the customising settings for document splitting. These settings are specific to the business transaction. Thus they display the split Document.

You can display a document as follows:

  • In its original form in the entry view.
  • Split from the view of the ledger in the general ledger view and with the generated clearing lines.

Document Splitting Configuration in SAP

As an overview, I here mention the basic steps we follow to configure document splitting in the SAP system.

  • First, classify the General Ledger Account – As per the nature of the business transaction, we classify the GL considering the item categories.
  • In step 2, classify the Document types – Here we assign the “Business Transaction” and “Business Transaction Variant” to document types.
  • Next, Define a zero balance clearing account – This we need to do when the system is not able to balance out the transaction entry based on its own. I have explained below in detail with steps.
  • Defining Characteristics for GL – It is a mandatory step in document splitting configuration in SAP. I.e. defining characteristics of document splitting.
  • Modifying constants – In this step the constants are defined which helps to assign the default account assignment when is not able to derive from any of the sources.
  • Inheritance Settings – This is a part of Activating Document Splitting itself. Here you also apply some more settings such as Inheritance. This means inheriting account assignments from other line items to those who do not have them of their own.

How to define a zero balance clearing account in SAP

Sometimes when the system does not balance out the transaction entries on its own, then, we need to define the zero balance clearing account. This helps to generate and balance out financial entries not done on their own.

Y ou should refer to the following path:-

SPRO => SAP Reference IMG => Financial Accounting (New) => General Ledger Accounting (New) =>  Business Transaction => Document Splitting => Define Zero Balance Clearing Account

In this blog, I tried to cover many aspects of Document Splitting in SAP. Though to understand the configuration of document splitting, the best way is to do it yourself in the system which gives you a stable knowledge of this process. A theoretical guide will help you conceptually, but these things are best understood in practical.

Document Splitting is an important part of GL Accounting and is very important for SAP S/4HANA Finance Consultants .

Being so important, employers usually put the topics of document splitting in SAP S4 HANA Finance or SAP FICO interviews .

Learn Document Splitting with: SAP S4 HANA Finance Training

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  1. SAP FICO Assignment.docx

    what is assignment in sap fico

  2. What Is a Profit Center in SAP S/4HANA?

    what is assignment in sap fico

  3. SAP FICO Assignment.docx

    what is assignment in sap fico

  4. What is Account assignment in SAP FICO

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  5. What is Sap FICO Account Assignment Model in Telugu

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VIDEO

  1. SAP FICO S4 HANA DAY 16 FI Organization Structure Creation & Assignment 06 01 2024

  2. SAP FICO S4 HANA Enterprise Structure Definition & Assignment Session 17 03 04 2023

  3. SAP FICO Project Overview

  4. 019 Account Assignment Model SAP FICO

  5. SAP FICO Enterprise Structure

  6. SAP FICO Class 3 Assign Company Code to Credit Control

COMMENTS

  1. What is Account assignment in SAP FICO

    In SAP FICO, account assignment is a core module that offers various types of account assignment options, including cost center accounting, profit-center accounting, internal order accounting, and WBS element accounting. These options provide organizations with greater visibility into their financial performance, enabling them to optimize their ...

  2. Account Assignment Models

    Definition. A reference for document entry that provides default values for posting business transactions. An account assignment model can contain any number of G/L account items and can be changed or supplemented at any time. In contrast to sample documents, the G/L account items for account assignment models may be incomplete.

  3. SAP CO Account Assignment Tutorial

    This tutorial is part of our free SAP CO training. You will learn how account assignment works in SAP ERP and what are different sources of information about account assignment that the SAP system uses. Normally, when a financial document is entered in SAP FI module, user has the option of entering the cost center in the financial document.

  4. Account Assignment

    The account assignment category determines: The nature of the account assignment (cost center, sales order, and so on) Which accounts are to be charged when the incoming invoice or goods receipt is posted. Which account assignment data you must provide. Account Assignment Categories. Description. Required account assignment data.

  5. Explaining Financial Accounting (FI)

    The FI application component fulfills all the international requirements that must be met by the FI department of an organization. FI focuses on General Ledger Accounting and the processing of receivables (FI-AR), payables (FI-AP), and Asset Accounting (FI-AA). Important tasks of FI include the recording of monetary and value flows as well as ...

  6. account assignment model in SAP

    Definitions by Module. A template used for document creation in which default values are provided for the posting of a business transaction. An account assignment model may contain any number of G/L line items, and can be changed or enhanced as needed. Unlike sample documents, account assignment models may contain incomplete G/L line items ...

  7. SAP CO Account Assignment

    This tutorial is part of our free SAP CO training. You will learn how account assignment works in SAP ERP and what are different sources of information about account assignment that the SAP system uses. Normally, when a financial document is entered in SAP FI module, user has the option of entering the cost center in the financial document.

  8. SAP FICO Account Assignment Model

    Use with TCode F-02, enter document date, posting date, company code, and currency. Click Account Assignment Model button, choose your model from the pop-up screen. The system populates the entry ...

  9. Account Assignment Model_SAP FICO

    In this video I have explain how to make account assignment model Document and how to use account assignment model Document in sap fico so…… keep touch with ...

  10. SAP Financial Accounting Configuration Steps

    Sap Menu Path :-SPRO -> IMG -> Enterprise Structure -> Assignment -> Financial Accounting -> Assign Company Code to Company. ... Bank Accounting:-Bank account is an important module in SAP fi used to handle accounting transactions that you process with your bank. Bank Accounting includes the management of organization Bank Master data ...

  11. SAP FICO Training Course Tutorial: Learn SAP FI & CO Modules

    SAP FICO Tutorial Summary. SAP FICO is the Finance and Cost controlling module in SAP ERP, where FI stands for Financial Accounting, and CO stands for Controlling. SAP FICO module is very robust and covers almost all business processes encountered in various industries. It is one of the very important and widely implemented modules in SAP.

  12. SAP FICO: What is, Introduction, Full Form & FICO Module

    SAP FICO is a module of SAP ERP which is used for financial reporting both externally and internally. The objective is to record all financial transactions that are posted by an entity and produce financial statements that are accurate at the end of the trading period. The SAP FICO full form is FI (Financial Accounting) and CO (Controlling).

  13. Getting an Overview of the Core Terms in Margin Analysis

    Manual FI posting to profitability segment. In the case of an attributed account assignment to a profitability segment, the costs and revenues are only shown in reports. Follow-on processes, which read line items from the database and transform them into new line items do not take attributed profitability segments into consideration.

  14. Defining General Ledger (G/L) Accounts and Cost Elements

    General Ledger Account and Cost Element. The two segments of the G/L master record from a Financial Accounting perspective are as follows: The chart of accounts segment contains a description of the account, the account type that classifies how the account can be used in FI and/or CO and, the account group that controls the company code segment ...

  15. Asset Accounting in SAP FICO (Step by Step Guide)

    SAP Asset Accounting process includes Acquisition, Asset Capitalization, retirement, transfer, depreciation calculation and posting of fixed assets. It is surely one of the important submodules of SAP ERP Financial Accounting. Hence, the knowledge of the sap asset accounting process is very important for project implementation and configuration.

  16. Enterprise Structure configuration Settings in SAP FICO

    Enterprise Structure is the key building block to the entire organization. Below are the Steps of Enterprise Structure Setting and configuration with screenshots. Step 1:- Define Company. SAP Menu Path :- SPRO -> IMG -> Enterprise Structure -> Definition -> Financial Accounting -> Define Company.

  17. Display SAP MM-FI Automatic Account Assignment

    Type in Table T030 and press Enter to display the selection screen shown in Figure 1. Figure 1: Table T030 Selection Screen To Display SAP MM-FI Configuration Settings. You restrict the table entries displayed on the subsequent results screen by making entries in the Selection Criteria section. To display G/L accounts posted during goods issues ...

  18. Account Assignment Models

    Definition. A reference for document entry that provides default values for posting business transactions. An account assignment model can contain any number of G/L account items and can be changed or supplemented at any time. In contrast to sample documents, the G/L account items for account assignment models may be incomplete.

  19. Define Account Group in SAP

    Menu Path: - SPRO - Financial Accounting - General Ledger Accounting — G/L Accounts — Master Data — Preparations — Define Account Group. Step 1) Enter T Code "OBD4" in the SAP command field and enter. Step 2) On change view "G/L Account Groups" overview screen, click on new entries to maintain the accounts. Step 3) On new ...

  20. Document Type in SAP FICO

    The document type is a factor with which we can classify accounting documents in SAP. It is entered in the document header that distinguishes business transactions and helps in managing document storage. We define the Document Type at the client level, which gets applied to the whole document. In SAP, Document Type is part of the document ...

  21. Define Functional Area in SAP

    Step 1) Enter transaction code "FM_FUNCTION" in the sap commend filed and enter to continue. Step 2) From process functional area screen, enter the four digits key that identities functional area in SAP and click on create functional area button to define the functional areas as per the organizational requirements. Step 3) Now update ...

  22. Document Splitting in SAP FICO HANA

    Noteworthy, SAP recommends activating 'Inheritance" with document splitting. Since it does not require the business to then create "rules" for a business process to ensure that account assignments are projected. Read: SAP FICO Interview Questions Blog Series