Company code global setting refer to a set of parameters that needs to be maintained for a company code.
As we understand that company code is a legal entity for which books of accounts need to be maintained. Hence whenever any transaction happens, corresponding accounting documents need to be posted in the company code.
But before posting any document in the company code, below parameters need to be maintained for the company code:
Screenshot showing minimum parameters needed for posting an accounting document in the company code
Above parameters (as shown in picture) collectively is called as company code global setting
Fiscal year variant:
Fiscal year corresponds to financial year of accounting.
For example,
In India, financial year of accounting is 1st April to 31st March
In Europe, financial year of accounting is 1st Jan to 31st Dec
Financial year of accounting has 12 months. Each month is referred as a posting period in sap.
Fiscal year variant is used to supply below information to company code:
Start date and end date of financial year of accounting.
Number of normal posting periods and special posting periods.
Number of days in each posting period
Posting period variant
Posting period variant controls weather any accounting document can be posted in the period or not.
Document can be posted only in period which is open for posting.
Standard practice is to keep only current month posting period open for posting.
To restrict document posting in future months and previous months, corresponding posting periods are closed.
Hence accounting document posting in any company code can be allowed or disallowed in the period. This control is enabled by posting period variant which is assigned to company code.
Above picture showing posting period variant
Chart of account:
Assignment of operational chart of account to company code is mandatory.
Link to understand operational chart of account: https://techconcepthub.com/operational-chart-of-account-in-sap/
Field status variant
Field status variant is a collection of field status groups. Field status group refers to status of all fields which are available for input in document line item while document posting.
Field status variant is assigned to company code. All field status groups which belong to field status variant are available for assignment to GL master in company code.
Field status group is assigned to general ledger account. When document is posted to a GL account, then fields behave as per their status in field status group.
Field status variant–> field status group–> fields with their status
Screenshot showing few fields on left and corresponding status on right.
Only few fields are shown in screenshot, there is huge list of fields in field status group.
Without maintaining company code global setting, it is not possible to post any accounting document in the company code.
GL ACCOUNTING
- What is SAP FICO ?What business requirement is fulfilled in this module?
- What is enterprise structure in sap fico?
- What is GL account? What is account group? What is operational chart of accounts?
- What is the need of country chart of account or alternate chart of account? How country chart of account helps fulfill a business requirement?
- What is the need for group chart of account? How group chart of account helps in consolidation of financial data?
- What is non leading ledger in sap fico?
- What is company code global settings? What global parameter is assigned to company code?
- What is fiscal year variant? Why fiscal year variant is assigned to company code?
- What is posting period variant? Why posting period variant is assigned to company code?
- What is field status variant? What is field status group?
- What is document type in sap? Explain the purpose of document type?
- Document date vs Posting date vs Entry date vs Translation date. Explain
- What is posting key? what is the use of posting key?
- Document header & line items capture information of business transaction.
- Everything about currency & exchange rate in sap.
- Foreign currency valuation in sap. Explain with example
- Retained earnings account helps in year end balance carry forward. Explain
- What is the significance of tolerance groups in sap?
- What parameters are maintained in GL master and how does it impact in document posting?
ACCOUNTS PAYABLE
- What is meant by accounts payable in sap?
- Understanding procure to pay (PTP) cycle and accounting document at each step.
- Understanding MM FI integration in very simple terms.
- Purchase order price determination in SAP. Explained in very simple words.
- House bank, Bank key, Account ID in SAP
- What configuration (FBZP) needed for executing F110 in sap ?
ACCOUNTS RECEIVABLE
- How sap overcomes challenges in accounts receivable process?
- What is customer reconciliation account?
- Understanding order to cash cycle in sap.
- Understanding SD FI integration in very simple terms.
- What is lock box? How lockbox helps in collection from customers?
TAX ACCOUNTING
- How sap helps in tax accounting?
- Tax configuration in sap: Tax procedure, Tax code & Tax jurisdiction code
- Concept of tax jurisdiction code & tax jurisdiction structure
- Significance of “Tax category & Posting without tax allowed” in GL master.
- Tax base amount and Discount base amount
- Assigning tax code V0 & A0 for non taxable transaction?
- Deductible input tax vs non deductible input tax
WITHHOLDING TAX
- Withholding tax in sap explained with example.
- How sap overcomes challenges in managing withholding tax?
- Withholding at the time of invoice or payment
- Withholding tax configuration in sap
- Business place & Section code in sap
- Withholding tax certificate numbering in sap
- Withholding tax report for filling tax returns
ASSET ACCOUNTING
- How sap helps in asset accounting?
- What is meant by asset accounting?
- What is the use of asset class?
- What is the use of depreciation key in asset accounting?
- Depreciation area and Chart of depreciation in sap.
- Derived depreciation area VS real depreciation area?
- Understanding asset accounting configuration needed in sap
- GL account determination for posting asset transaction
- Asset transaction and corresponding accounting document?
- How depreciation is posted in sap?
SAP CONTROLLING