SAP FICO Global Parameters

1. SAP FICO Global Parameters SAP FICO Global Parameters refer to a set of mandatory parameters that needs to be maintained for a company code like Chart of Account, Fiscal Year Variant, Posting Period Variant and Field Status Variant. Below parameters need to be maintained for the company code: Variant 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 >> +91 91583 97940 www.gauravconsulting.com

2. 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) +91 91583 97940 www.gauravconsulting.com

3. 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 +91 91583 97940 www.gauravconsulting.com

4. 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. +91 91583 97940 www.gauravconsulting.com

5. 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) +91 91583 97940 www.gauravconsulting.com

6. 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. +91 91583 97940 www.gauravconsulting.com

7. 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. +91 91583 97940 www.gauravconsulting.com

8. 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) +91 91583 97940 www.gauravconsulting.com

9. 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. +91 91583 97940 www.gauravconsulting.com

10. 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. +91 91583 97940 www.gauravconsulting.com

11. Assign Company Code to Chart of Account (T-Code OB62) +91 91583 97940 www.gauravconsulting.com

12. 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. : 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. : +91 91583 97940 www.gauravconsulting.com

13. 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 Thank you for taking the time to read my blog. I appreciate your support and hope you found this content valuable. Stay tuned and follow me for more insightful articles in future. +91 91583 97940 www.gauravconsulting.com