Click the option All Company Code in the above screen. A new window will open.

Go to New
Entries.

Enter the company code in the field Paying Company Code. Select the checkboxes Pyt. Meth
Suppl. and Max. Cash Discount as shown below −

Setup Paying Company Codes

Click Paying Company Codes and go to New Entries.

It will open a new window wherein you need to provide the following details −
  Paying company code

 Min amount for incoming payment

 Min amount for outgoing payment

 Exchange rate differences, separate payment for each Ref.,Bill / Exch pymt.

Payment Method in Country

Click the option Payment Method in Country on the main window. Go to New Entries as shown
below.

In the next screen, input the following details −

 Enter Country name, Payment method and Description.

 Select payment method: Incoming/outgoing payment.

  Select payment method classification.

Payment Method in Company Code

Click the option Pmnt. Method in Company Code on the main window. Go to New Entries as
shown below −

In the next screen, enter the following details −

 Enter Paying Co Code and Pymt. Method.

  Enter minimum and maximum amount limits.

 Select Bank selection control option.

 Go to form data as shown below.

Update Form Data Type. Click the Search button and select the value.

Enter the field-drawer of the form and once all the details are supplied, click the Save button.
 Bank Determination
Click the option Bank Determination in the main window. Select Paying Company Code and click
the option Select Block as shown below and go to Bank Account.
Click the button Ranking Order and go to New Entries as shown below −

Enter the new bank account details as shown below to create a bank account.

House Banks
House Banks provide the details of the bank account which is used by a company to make
payments to its vendors and customers.

Click the option House Banks on the main screen and enter the company code as shown below
−
The next window will show a list of all house banks which the company is using to make payments
to its vendors and customers.

While clearing Financial Accounting documents that have been posted in a foreign currency, you
can post the rounding differences that arise to a separate revenue/expense account. Earlier these
differences were displayed as exchange rate differences at the time of clearing.

Rounding differences can be posted to the General Ledger account as Expense or Revenue.

How to post rounding difference in SAP FI?

Go to SPRO → SAP Reference IMG → Financial Accounting → AR and AP → Business Transactions
→ Outgoing Payments → Outgoing Payment Global settings → Define account for rounding
differences → Execute.
Select Chart of Accounts and click . Go to Posting Key.

In the next screen, enter the following details −

 Enter the G/L account to post rounding difference. Click Posting Key at the top

 Enter the Credit and Debit posting key and click the Save icon at the top

 Enter the request customizing number to save the configuration

In SAP FI, month-end closing involves activities in posting a closing period. You can carry out
the following activities as a part of month-end closing −

 Open and close posting periods.

 You close one or more posting periods in the past for posting, and permit posting to be
made to one or more current or future posting periods.

Use the T-code F.05 or FAGL_FC_VAL for new G/L accounts.

It will open a new window wherein you need to enter the following details −

 Company Code for which Foreign Currency Valuation is to be carried out.

 Evaluation Key Date.

 Valuation Method for Exchange Rate Consideration.

 Valuation in Currency Type.

You can filter out Valuation activity by entering the appropriate parameters in the Tab Screens.

Click the Execute button . It will open a list of all G/L accounts selected for foreign currency
valuation.
In SAP FI, if a customer misses the payment for the outstanding invoice by payment due date,
you can generate a dunning letter using SAP FI and send it to the customer address to remind
him of the outstanding payment.

Requirement
The dunning system enables to trace liable customers who have not paid their open invoices
within a given time span. It enables you to handle the process from, for example, sending a
reminder to customers of their outstanding payments through referring such customers to
collections agencies.

The dunning system covers the following documents.

 Open A/R invoices, including invoices that are partially credited or partially paid.

 Invoices that include installments.

 A/R credit memos.

 Incoming payments that are not based on invoices.

How to Create Dunning Keys?

Go to SPRO → SAP Reference IMG → Financial Accounting (New) → AR and AP → Business
Transactions → Dunning → Basic Setting for Dunning → Define Dunning Keys → Execute.
 Define Block Reason for Dunning
Here you define the reason for dunning block reason under a key. It can be defined for an item
or for a customer master. Blocked item or customer account are not considered for dunning
reason.
Exchange Rates are used to define a relationship between two currencies and also to maintain
exchange rates that are used to translate an amount into another currency.

You define exchange rates in the system for the following purposes −
  Posting and Clearing − To translate amounts posted or cleared in foreign currency, or
to check a manually entered exchange rate during posting or clearing.

 Exchange Rate Differences − To determine gains or losses from exchange rate

differences.

 Foreign Currency Valuation − To valuate open items in foreign currency and foreign
currency balance sheet accounts as part of the closing operations.

Go to SPRO → SAP Reference IMG → SAP Netweaver → General Settings → Currencies → Enter
Exchange Rates → Execute.

Exchange rates can be entered as direct or indirect quotations. In direct quotation, we give
multiple of base currency to foreign currency.

Example − 1 USD = 65 × 1 INR

For indirect quotation, it will be 1/65 USD = 1 INR.

How to create direct/indirect quotation in SAP FI?

In the next window, enter the following details −

 Exchange Rate Type.

 Valid From date that is the start date from which the rates are applicable.

 First Currency.

 Quotation Rate.

 Second Currency.

After entering the details, click the Save button. Enter the request number and click the tick
mark.

FBAS Financial Accounting “Basis”

BKPF Accounting Document Header MANDT / BUKRS / BELNR / GJAHR

Accounting Document
BSEG MANDT / BUKRS / BELNR / GJAHR / BUZEI
Segment

Index for Vendor Validation MANDT / BUKRS / LIFNR / WAERS / BLDAT /

BSIP
of Double Documents XBLNR / WRBTR / BELNR / GJAHR / BUZEI

Inter Company Posting

BVOR MANDT / BVORG / BUKRS / GJAHR / BELNR
Procedure

Accounting Document Header

EBKPF MANDT / GLSBK / BELNR / GJHAR / GLEBK
(docs from External Systems)

FRUN Run Date of a Program MANDT / PRGID

MANDT / NKULI / NBUKR / NKOAR / PNTYP /

KLPA Customer / Vendor Linking
VKULI / VBUKR / VKOAR

KNB4 Customer Payment History MANDT / KUNNR / BUKRS

Customer Master Dunning

KNB5 MANDT / KUNNR / BUKRS / MABER
Data

Customer Master Bank

KNBK MANDT / KUNNR / BANKS / BANKL / BANKN
Details

Customer Master Transaction

KNC1 MANDT / KUNNR / BUKRS / GJHAR
Figures

Customer Master Special GL

KNC3 MANDT / KUNNR / BUKRS / GJAHR / SHBKZ
Transactions Figures

LFB5 Vendor Master Dunning Data MANDT / LIFNR / BUKRS / MABER

LFBK Vendor Master Bank Details MANDT / LIFNR / BANKS / BANKL / BANKN
 Vendor Master Transaction
LFC1 MANDT / LIFNR / BUKRS / GJHAR
Figures

Vendor Master Special GL

LFC3 MANDT / LIFNR / BUKRS / GJHAR / SHBKZ
Transactions Figures

Document Header for

VBKPF MANDT / AUSBK / BUKRS / BELNR / GJHAR
Document Parking

FBASCORE Financial Accounting General Services “Basis”

Customer Master (Company

KNB1 MANDT / KUNNR / BUKRS
Code)

Vendor Master (General

LFA1 MANDT / LIFNR
Section)

Vendor Master (company

LFB1 MANDT / LIFNR / BUKRS
Code Section)

G/L Account Master (Chart of

SKA1 MANDT / KTOPL / SAKNR
Accounts)

G/L Account Master (Chart of

SKAT MANDT / SPRAS / KTOPL / SAKNR
Accounts – Description)

Accounts Blocked by
MAHNS MANDT / KOART / BUKRS / KONKO / MABER
Dunning Selection

MANDT / LAUFD / LAUFI / KOART / BUKRS /

Dunning Data (Account
MHNK KUNNR / LIFNR / CPDKY / SKNRZE / SMABER /
Entries)
SMAHSK / BUSAB

FI-GL-GL (FBS) General Ledger Accounting: Basic Functions- G/L Accounts

 G/L Account Master (Chart of
SKAS MANDT / SPRAS / KTOPL / SAKNR / SCHLW
Accounts – Key Word list)

G/L Account Master

SKB1 MANDT / BUKRS / SAKNR
(Company Code)

FI-GL-GL (FBSC) General Ledger Accounting: Basic Functions - R/3 Customizing for G/L Accounts

Settings for G/L Posting

FIGLREP MANDT
Reports

Create G/L account with

TSAKR MANDT / BUKRS / SAKNR
reference

FI-GL-GL (FFE) General Ledger Accounting: Basic Functions - Fast Data Entry

Account Assignment
KOMU Templates for G/L Account MANDT / KMNAM / KMZEI
items

FI-AR-AR (FBD) Accounts Receivable: Basic Functions - Customers

Customer Master Credit

KNKA MANDT / KUNNR
Management : Central Data

Customer Master Credit

KNKK Management : Control Area MANDT / KUNNR / KKBER
Data

Credit Management : FI
KNKKF1 MANDT / LOGSYS / KUNNR / KKBER / REGUL
Status data

Accounting Data – A/R and

RFRR MANDT / RELID / SRTFD / SRTF2
A/P Information System

FI-BL-PT
Bank Accounting: Payment Transactions – General Sections
(BFIBL_CHECK_D)
 MANDT / ZBUKR / HBKID / HKTID / RZAWE /
PAYR Payment Medium File
CHECT

PCEC Pre-numbered Check MANDT / ZBUKR / HBKID / HKTID / STAPL

FI-BL-PT-AP(FMZA) Bank Accounting: Payment Transactions – Automatic Payments

Global Settings for Payment

F111G Program for Payment MANDT
Requests

Cash Management Line Items

FDZA MANDT / KEYNO
in Payment Requests

PAYRQ Payment Requests MANDT / KEYNO

FI-AA-AA (AA) Asset Accounting: Basic Functions – Master Data

ANKA Asset Classes: General Data MANDT / ANLKL

Asset Classes: Fld Cont

ANKP Dpndnt on Chart of MANDT / ANLKL / AFAPL
Depreciation

ANKT Asset Classes: Description MANDT / SPRAS / ANLKL

Asset Classes: Insurance

ANKV MANDT / ANLKL / VRSLFD
Types

ANLA Asset Master Record Segment MANDT / BUKRS / ANLN1 / ANLN2

MANDT / BUKRS / ANLN1 / ANLN2 / AFABE /

ANLB Depreciation Terms
BDATU

ANLT Asset Texts MANDT / SPRAS / BUKRS / ANLN1 / ANLN2

 Asset Master Record User
ANLU .INCLUDE / MANDT / BUKRS / ANLN1 / ANLN2
Fields

Insurable Values (Year MANDT / BUKRS / ANLN1 / ANLN2 / VRSLFD /

ANLW
Dependent) GJAHR

ANLX Asset Master Record Segment MANDT / BUKRS / ANLN1 / ANLN2

Time Dependent Asset

ANLZ MANDT / BUKRS / ANLN1 / ANLN2 / BDATU
Allocations

FI-AA-AA (AA2) Asset Accounting: Basic Functions – Master Data 2.0

ANAR Asset Types MANDT / ANLAR

ANAT Asset Type Text MANDT / SPRAS / ANLAR

FI-AA-AA (AB) Asset Accounting: Basic Functions – Asset Accounting

Document Header Asset MANDT / BUKRS / ANLN1 / ANLN2 / GJAHR /

ANEK
Posting LNRAN

MANDT / BUKRS / ANLN1 / ANLN2 / GJAHR /

ANEP Asset Line Items
LNRAN / AFABE

MANDT / BUKRS / ANLN1 / ANLN2 / GJAHR /

ANEV Asset Downpymt Settlement
LNRANS

Asset Class: Depreciation

ANKB MANDT / ANLKL / AFAPL / AFABE / BDATU
Area

MANDT / BUKRS / ANLN1 / ANLN2 / GJAHR /

ANLC Asset value Fields
AFABE

ANLH Main Asset Number MANDT / BUKRS / ANLN1

MANDT / BUKRS / GJAHR / PERAF / AFBNR /

ANLP Asset Periodic Values
ANLN1 / ANLN2 / AFABER
 FI-SL-VSR (GVAL) Special Purpose Ledger: Validation, Substitution and Rules

GB03 Validation / Substitution User VALUSER

GB92 Substitutions MANDT / SUBSTID

GB93 Validation MANDT / VALID

In addition to invoicing processes delivered by SAP, you can define your own invoicing processes.
For each process, you can adjust the behavior of the SAP invoicing program to your own
requirements such that only the required invoicing functions are run and under the consideration
of your individual settings for these functions. This flexibility is in addition to non-modification
enhancement which includes BAdIs, and events.

Invoicing processes are used as selection parameters for mass activities for "Invoicing in Contract
Accounts Receivable and Payable".

Number ranges for invoicing documents are defined dependent on the invoicing processes.

Invoicing processes are a differentiation characteristic for the activation of optional invoicing
functions.

The individual process steps of "Invoicing in Contract Accounts Receivable and Payable" are
explained below.

Process Steps: Invoice Processes

Invoice processes involve the following steps −

 Data Selection − In data selection, the invoicing orders are selected for the invoicing
process. You define the selection criteria for the data selection for the invoicing process.

 Creation of Invoicing Units − The invoicing orders selected are grouped into invoicing
units for each contract account. You can create several invoicing units for each contract
account. For each invoicing unit, "Invoicing in Contract Accounts Receivable and Payable"
creates one invoicing document. You define the criteria for creating the invoicing units for
the invoicing process.
  Processing of Billing Documents − The billing documents selected for an invoicing unit
are included in the invoicing document. The billing document items are linked with the
items of the invoicing document, and the derivations required for the posting in "Contract
Accounts Receivable and Payable" (FI-CA) are performed.

 Performance of Additional Functions − In addition to processing billing documents, in

"Invoicing in Contract Accounts Receivable and Payable" , you can integrate further
functions of FI-CA. For example, interest calculation, creation of dunning proposals, or the
calculation of charges and discounts. You define which additional functions are performed
for each invoicing process.

 Account Maintenance − Using the account maintenance integrated in "Invoicing in

Contract Accounts Receivable and Payable", you can perform clearing between the posting
documents entered in Invoicing and the open items of the contract account posted before
invoicing. You define the criteria for clearing in the clearing control.

 Update − The invoicing document created for the invoicing unit and the posting
documents are written to the database. The invoicing orders processed are deleted. As
well as the invoicing unit, a correspondence container for invoice printing and an extraction
order for the update to BW are created.

There are many types of reports that can be used for account analysis (A/R) −

 Customer Line Item Analysis

 Balance Analysis

 Customer Evaluation Report

Customer Line item Analysis

T-code: FBL5N

Customer line item report will be generated based on the open items, cleared items, and all
items. It has options available to see transactions based on type: i.e., special G/L, Noted items,
Parked items and vendor items.
 Customer Balance
T-code: FD10N

This report will be generated as customer-wise / period-wise balances, including debit and credit
amount separately. It will also display the balances related to special G/L under different form
and gives the total.

Balances of open Sales Invoice, Debit note and Credit note is available under separate columns
in the same report. Users have the facility to incorporate required fields by changing the report
layout.

Customer Evaluations
T-code: F.30

This report helps in analyzing customer open transactions company-wise, group-wise, Credit
control, etc. Users can define open transactions criteria based on due date, payment history,
currency analysis, overdue items etc.

SAP T-codes to be used for Account Analysis in SAP FI −

 Customer line item display : FBL5N

 Customer Balance Display : FD10N

 Accounts Receivable info system : F.30

There are various reports that you can generate in Account Receivable. Following are the common
reports in SAP FI AR along with their T-codes used to generate the report −

 Bill Holdings (Bill of Exchange Receivable List with ALV facility): S-ALR_87009987

 Customer Balances in Local Currency: S_ALR_87012172

 Customer Line Items: S_ALR_87012197

 Due Dates Analysis for Open Items: S_ALR_87012168

 List of Customer Open Items: S_ALR_87012173

 Customer Evaluation with Open Item Sorted List: S_ALR_87012176

 Customer Payment History: S_ALR_87012177

  Customer Open Item Analysis (Overdue Items Balance): S_ALR_87012178

 List of Customer Cleared Line Items: S_ALR_87012198

 List of Down Payments open at key date: S_ALR_87012199

 Debit & Credit Notes Register u2013 Monthly: S_ALR_87012287

 Customer-wise Sales: S_ALR_87012186

The FI-Asset Accounting (FI-AA) component is used for managing the fixed assets in FI system.
In Financial Accounting, it serves as a subsidiary ledger to the General Ledger, providing detailed
information on transactions involving fixed assets.

Integration with other components − As a result of the integration in the SAP system, Asset
Accounting (FI-AA) transfers data directly to and from other SAP components.

Example
It is possible to post from the Materials Management (MM) component directly to FI-AA. When
an asset is purchased or produced in-house, you can directly post the invoice receipt or goods
receipt, or the withdrawal from the warehouse, to assets in the "Asset Accounting" component.

At the same time, you can pass on depreciation and interest directly to the "Financial Accounting"
(FI) and "Controlling" (CO) components. From the "Plant Maintenance" (PM) component, you can
settle maintenance activities that require capitalization to assets.

Components of Asset Accounting

The "Asset Accounting" component consists of the following parts −

 Traditional asset accounting

 Processing leased assets

 Preparation for consolidation

 Information System

Traditional asset accounting encompasses the entire lifetime of the asset from purchase order or
the initial acquisition through its retirement. The system calculates, to a large extent
automatically, the values for depreciation, interest, insurance and other purposes between these
two points in time, and places this information at your disposal in varied from using the
Information System. There is a report for depreciation forecasting and simulation of the
development of asset values.

The system also offers special functions for leased assets, and assets under construction. The
system enables you to manage values in parallel currencies using different types of valuation.
These features simplify the process of preparing for the consolidation of multinational group
concerns.

The "Plant Maintenance" (PM) component offers functions for the technical management of assets
in the form of functional locations and as equipment. The "Treasury" (TR) component offers
special functions for managing financial assets.

Create New Asset Classes

Use the T-code OAOA or go to SPRO → SAP Reference IMG → Financial Accounting → Asset
Accounting → Organizational Structure → Asset Classes → Define Asset Classes → Execute.

Click New Entries as shown in the following screenshot.

In the next screen, enter the following details −

 Asset class and Short Text

 Asset Type details

 Number Range from number assignment

 Select include asset under inventory

You can also select Asset under construction (AuC).

Click the Save icon to configure the asset class.

This function shows all the values of a fixed asset, including APC values and depreciation, in
various forms and summarization levels. Planned values are displayed as well as the values
already posted. You use this function to display and analyze asset values.

Components of Asset Explorer

Asset Explorer consists of the following components −

 Header − This is the field where you enter the company code and asset number.

 Overview tree − Using overview tree, you can navigate between different depreciation
areas. Overview tree displays objects related to the asset.

 Tab − This is where you analyze plan values and posted values using different parameters,
and compare fiscal years and depreciation areas.

Note − The Asset Explorer uses ALV Grid Control for its table display. You can use it to specify
the contents of the columns.

Header
With the company code and main asset number, you can also enter the asset sub-number. If
you enter an asterisk (*) in the sub number field, the Asset Explorer shows all transactions and
depreciation of all sub numbers of the asset main number. Use “This graphic” is explained in the
accompanying text and “This graphic” is explained in the accompanying text icons to navigate to
different fiscal years.

Overview Tree for Depreciation Areas

Choose the pushbutton above the overview tree, or “this graphic” is explained in the
accompanying text Display master data function, to reach the display transaction for asset
master data.

To navigate between depreciation areas in the overview tree, select the depreciation area you
want. Icons indicate the type of depreciation area. This graphic is explained in the accompanying
text icon indicates a real depreciation area, and the “This graphic” is explained in the
accompanying text icon indicates a derived depreciation area.

Overview Tree for Related Objects

The system automatically searches for objects related to the asset, such as cost center,
equipment, G/L account, WBS element, and displays them in an overview tree. From this
overview tree, you can jump directly to the display transaction of the given master data.

There are additional options if the asset was created or posted from a purchase order. In that
case, you can double click on the Purchase Orders folder to go to a report that displays all
Materials Management documents that are linked to the asset.

When you enter an asterisk (*) for the sub-number in the Asset Explorer, the search for related
objects is deactivated. On the Planned Values, Posted Values, and Comparisons tab pages, the
system shows the total of all sub-numbers for all fields. On the Parameters tab page, the
individual parameters are displayed only if they are the same for the main number and all sub-
numbers. If they are not all the same (for example, the main asset and sub-numbers have
different useful lives), then the field is shown with an asterisk (*).

The Transactions subscreen shows all transactions for all the sub-numbers. The display of
planned/posted depreciation per period shows the total of all sub-numbers for each period. When
you jump to other Asset Accounting reports, these are started without being limited to a sub-
number. The report then displays all sub-numbers.

Limitations of using an asterisk (*) for the sub-number

Display of the depreciation trace (RATRACE0N) − The trace always relates to a specific
asset and it is not possible to add assets together. The report is started for the asset that has
the lowest sub-number.

Display of asset master record (AS03) − It is started for the first existing asset.

The Cash Management field in SAP FI is used to manage cash flows and to ensure that you have
sufficient liquidity to cover your payment obligations.

Integration with other SAP components

SAP FI Cash Management is a sub-component of Financial Supply Chain Management. It can be
integrated with a range of other SAP components.
Example − The liquidity forecast – in a medium- to long-term liquidity trend – integrates
expected incoming and outgoing payments in financial accounting, purchase, and sales.

Features of Cash Management

SAP FI Cash Management Incomings area covers the following topics −

 Electronic and manual bank statements

 Electronic and manual check deposits

 Bill of exchange presentation

 Memo record

 Polling

 Payments

 Lockbox

Compare payment advices, "Interest calculation "and "Returned vendor checks" are dealt with
the Checks topic.

Cash concentration can be found in the Planning topic. Planning also deals with the "payment
program", "payment requests", "bill of exchange presentation", "memo record "and "telephone
list".

The tools topic covers the "distribution" to cash management systems.

The Information System topic deals among other things with the "Liquidity forecast."

Further topics include: Payment advice journal, Compare and check "and "Reconciliation with
cash management.

In the Environment area, you will find functions for transferring market data to the SAP system.
Market data can be transferred using the file interface, real-time data feed, or via a spreadsheet.
SAP Controlling (CO) is another important SAP module offered to an organization. It supports
coordination, monitoring, and optimization of all the processes in an organization. SAP CO
involves recording both the consumption of production factors and the services provided by an
organization.

SAP CO includes managing and configuring master data that covers cost and profit centers,
internal orders, and other cost elements and functional areas.

The main purpose of SAP controlling module is planning. It enables you to determine variances
by comparing actual data with plan data and thus enables you to control business flows in your
organization.

SAP CO Integration with Financial Accounting

Both SAP CO and SAP FI modules are independent components in a SAP system. The data flow
between these components takes place on a regular basis.

Data flows relevant to cost flows to Controlling from Financial Accounting. At the same time, the
system assigns the costs and revenues to different CO account assignment objects, such as cost
centers, business processes, projects or orders.

The key submodules of SAP controlling system are listed below −

 Cost Element Accounting − Cost and Revenue Element Accounting provides you with
an overview of the costs and revenues that occur in an organization. Most of the values
are moved automatically from Financial Accounting to Controlling. Cost and Revenue
Element Accounting only calculates costs which either do not have another expense or
only one expense in Financial Accounting.

 Cost Center Accounting − Cost Center Accounting is used for controlling purposes within
your organization.

 Activity-Based-Accounting − It is used to analyze cross-departmental business

processes.
  Internal Orders − Internal orders in SAP CO are used to collect and control according to
the job that incurred them. You can assign budgets for these jobs that is system monitored
to ensure that they are not exceeded from the set budgets.

 Product Cost Controlling − It calculates the cost for manufacture a product, or to

provide a service. It allows you to calculate the price at which you can profitably marketed
it.

 Profitability Analysis − It is used to analyze the profit or loss of an organization by

individual market segments. Profitability Analysis provides a basis for decisionmaking. For
example, it is used to determine price, conditioning, customer, distribution channel, and
market segment.

 Profit Center Accounting − It is used to evaluate profit or loss of individual, independent

areas within an organization. These areas are responsible for their costs and revenues.

A Cost Center is defined as a component in an organization that adds to the cost and indirectly
adds to the profit of the organization. Examples include Marketing and Customer Service.

A company can classify a business unit in three ways −

 Profit center,

 Cost center, or

 Investment center.

The simple and straightforward division in an organization can be classified as cost center
because cost is easy to measure.

Cost Center Hierarchy

The hierarchy of a cost center looks as follows −
To create a cost center, use the T-code KS01. It will open the following window.

Enter the Controlling Area in the next screen and click the tick mark.

In the next window, enter the following details and click the Master Data.
  New cost center number.

 Validity dates of the new cost center.

You can also create a new cost center with a reference.

Once you click Master Data, a new window will open. Enter the following details in the basic data
tab −

 Enter the name of the new cost center.

 Enter a description for the new cost center.

 Enter the User and Person Responsible.

 Cost Center Category.

 Hierarchy area.

 Company Code.

 Profit Center.
Next, click the Control tab and select the correct indicator.

At the end, click the save icon at the top.

To post to a cost center, use the T-code FB50. It will take you to the following window.

In this window, you need to enter the following details −

 Document date

 Company code

 G/L Account for the Debit Entry which is to be posted to the Cost Center

 Debit Amount

 Cost Center in which the Amount is to be posted

 G/L Account for Credit Entry

 Credit Amount

Click the Save button at the top to post to this cost center.

SAP CO internal order monitors the parts of the costs and in a few cases, it also monitors the
revenues of the organization.
You can create an internal order to monitor the costs of a time-restricted job or the costs for the
production of activities. Internal orders can also be used for the long-term monitoring of costs.

Investment cost related to fixed assets are monitored using Investment orders.

Period-related accrual calculation between expenses in FI and the costing-based costs debited in
Cost Accounting are monitored using Accrual orders.

Costs and revenues incurred for activities for external partners or for internal activities that do
not form a part of the core business for your organization are monitored using order with
revenues.

How to create an Internal Order in SAP CO?

Use the T-code KO04 or go to Accounting → Controlling → Internal Orders → Master Data →
Order Manager.

In the next screen, input the controlling area as shown below −

Click the Create button at the top to create a new internal order and enter the order type.

In the next window, enter the following details −

 Company Code

 Business area

 Object Class of the Order

 Profit Center

 Cost Center responsible for the internal order

After entering the above details, click the Save button at the top to create the internal order.