top of page

SAP FI Global Settings

Updated: 5 days ago

Company code Global setting refer to a set of mandatory parameters that needs to be maintained for a company code.

Below parameters need to be maintained for the company code:

Variant Principle - This Principle is a Three step method in SAP system to assign particular properties to one or more objects.


There are 3 Steps in Variant Principle :

1. Define

2. Determine Values

3. Assign to Company Code


Path: - In IMG Screen >>


Fiscal Year Variant:


Fiscal Year Variant - Here we have to define Companies Financial year for Posting Journal Vouchers and to generate Financial Period End Reports.

Countries Like India Follow APR-MAR (V3), USA & European Countries Follow JAN-DEC (K4), Singapore Follows NOV-OCT Period depending on the Countries Legal Requirement.

Here we also mention the Number of Periods and Number of Special Periods Required,

whether it is Shortened Year,

whether the Fiscal Year Requires Year Shift Alignment or Not.

Maintain Fiscal Year Variant - (T-Code OB29)

Year Shift - Allows you to align the fiscal year with a different calendar year. This is Useful for organizations that have fiscal years that do not match the standard calendar year.

Shortened Fiscal Year - This option allows you to define a fiscal year with fewer posting periods than the standard 12-month calendar year. This Can Happen due to Company Restructuring, New Implementation, or Regulatory Requirements. To create Shortened year, it must always be a Year Dependent.

For Example, if your fiscal year starts in April here you can set a Year Shift of -3 months. This means that when you start posting transactions in April (according to your fiscal year), they will align with the first quarter of the calendar year.

Month

Current Year

Posting Period

Year

Year Shift

01

JAN

10

2022

-1

02

FEB

11

2022

-1

03

MAR

12

2022

-1

04

APR

01

2023

0

05

MAY

02

2023

0

06

JUN

03

2023

0

07

JUL

04

2023

0

08

AUG

05

2023

0

09

SEP

06

2023

0

10

OCT

07

2023

0

11

NOV

08

2023

0

12

DEC

09

2023

0

Year Dependent & Year Independent

Year Dependent - With a year-dependent fiscal year variant, you can define a different fiscal year structure for each calendar year. This means that the fiscal year variant can change from one calendar year to another. If Every Year is different (either the number of Posting periods or Days in period).

Like:

Year

Period

JAN

FEB

MAR

APR

2020

10

31

29

31

30

2021

11

31

29

31

30

2022

10

31

28

31

30

Year Independent - Fiscal Year Variant is a type of fiscal year variant configuration that remains constant across all calendar years. This maintains the same fiscal year structure regardless of the calendar year. Every Year have the Same Number of Period and Same number of Days.

Like:

Year

Period

JAN

FEB

MAR

APR

2020

10

31

28

31

30

2021

10

31

28

31

30

2022

10

31

28

31

30

Assign Company Code to Fiscal Year Variant. (T-Code OB37)


Posting Period Variant:


Posting Period Variant - controls and defines the posting periods that are open for financial transactions within a specific fiscal year variant. This Variant defines the periods during which financial transactions can be posted. Here we can control which periods are Open and Close for Postings.

Different company codes within the same SAP instance can have different Posting Period Variants, allowing flexibility in managing multiple entities with different financial processes.


Define Variant for Open Posting Period (T-Code OBBO)



Assign Posting Period Variant to Company Code (T-Code OBBP)

Open & Close Posting Periods for your Company Code - (T-Code OB52)


There are Normally 3 Period Intervals in posting Period Variant -

Normal Period -(Period-1)

Special Period -(Period-2)

Controlling Area Period -(Period-3)

This can also be linked to user authorization roles. This means that only authorized users can post transactions in open periods, preventing unauthorized.

Special Periods - This Periods are kept for making Year-End Adjustments which are not part of the regular posting period for example if your Current F.Y is 2023-24 you can maintain Special Periods for Previous Year 2022-23 related special Adjustments like corrections related to Tax Authorities, Management etc.


Account Type - is classification that categorizes financial accounts based on their nature and purpose of accounting for posting.

Like :

'+' = Main gate (This must be Open in order to post Transactions)

'A' = Assets

'D' = Customer

'K' = Vendor

'M'= Materials

'S' = Normal General Ledger


Field Status Variant:


Field Status Variant - this controls the field status of various fields in financial documents. It determines which fields are Hidden/Suppress , Display, Required, Optional during the entry of financial transactions, such as creating invoices, posting journal entries, or processing accounts payable and accounts receivable transactions.

It is always Recommended to Copy all Field Status Groups from available Standard Field Status Variant of Company Code 1710 and Alter or Add according to client's requirement instead of Creating from Scratch.


Define Field Status Variant (T-Code OBC4) - (Field Status Variant is 4-Digit Alphanumeric Code)


Field Status Group - is a grouping of fields that are assigned a specific field status within a Field Status Variant. Each field within a document is assigned to a particular field status group. The field status of a group determines whether the field is Hidden, Displayed, required, or optional field on the document entry screen.



Here we Maintain Fields for its behavior at the time of Posting , whether the Fields to be Hidden, Required or Optional.



Assign Company Code to Field Status Variant (T-Code OBC5) - It is recommended to have Separate Field Status Variant for each company Code so that any changes in one Variant wouldn't affect the other Company Codes.


Chart of Account


Chart of Account - (CoA) is a structured list of all the general ledger accounts used by a company Codes. It provides a structured and systematic way to categorize and classify various financial transactions and events. This serves as the foundation for the entire financial accounting process within SAP.

Path: To Chart of Account -

Edit Chart of Account List- (OB13) *

(CoA is 4-Digit Alphanumeric Code)

length of G/L Account Number-Max 10 Digit Alphanumeric Code

"✔" Block Check Box- is to Block CoA not to use, if no longer needed.


Assign Company Code to Chart of Account (T-Code OB62)


There are basically 3 Charts of Account:


1. Operational CoA (Mandatory)- is a specific Chart of Accounts that is primarily designed and used for operational purposes within a particular company code. Focuses on capturing detailed transactions and financial data for day-to-day operational activities. It must be assigned to every Company Code in order to carry out Postings.

Like:

Company Code

Chart of Account

AB01

CoA1

AB02

CoA2

AB03

CoA3

2. Group CoA (Optional) - consolidated version of the individual operational Chart of Accounts used by different company codes within an organization. It serves as a way to standardize and streamline financial reporting and analysis across multiple entities while still accommodating their unique operational accounting needs.

Like:

Company Code

Chart of Account

Group Chart of Account

AB01

CoA1

CoA4

AB02

CoA2

CoA4

AB03

CoA3

CoA4

3. Country CoA (Optional /Alt.CoA) - It is a specialized type of Chart of Accounts designed to meet the specific legal and regulatory reporting requirements of that country.

This CoA is required when all Company Codes are using same CoA and some Country require Specific CoA for its Legal Reporting.

Like :

Company Code

Chart of Account

Alternate Chart of Account

AB01

CoA1

AB02

CoA1

CoA2

AB03

CoA1

Click below to Watch related Video.



For complete video package visit the link below

https://www.gauravconsulting.com/product-page/sap-s-4-hana-finance-beginners-videos


New SAP S4 HANA FICO online batch starting from 05th Sep'23

Check details: https://www.gauravconsulting.com/product-page/sap-s-4-hana-finance-beginners-live-training



475 views0 comments

Recent Posts

See All
bottom of page