Document type purpose is to segregate the documents based on nature of business transaction.
Let’s consider below example to understand:
In real business scenario, thousands of accounting documents are posted every single day. Let’ say there are thousands of documents from which you need to segregate the documents which are customer invoice, customer payment, vendor invoice, vendor payment, asset depreciation.
One way to segregate documents is to look at each & every document and decide if it’s a customer invoice or customer payment or vendor invoice or vendor payment or asset depreciation etc.
Other way, while posting a document follow below rule:
If documents are posted with above rule, then document segregation can be done on the basis of document type itself. No need to look at each & every document to decide document belongs to which business transaction.
In sap, no accounting document can be posted without document type.
Document type controls below:
What account types can be posted:
Out of below predefined account types in sap, which accounts cab be posted
A: Asset
K: Vendor
D: Customer
M: Material
S: General ledger
Example: Vendor cannot be posted with type DR. Customer cannot be posted with type KR.
Number range:
Every document type is assigned a number range. When a document gets posted, document number created is always within the assigned number range.
Document number range can be internal or external
Internal number range: When a document is posted, system decides the document number as last posted document number + 1.
External number range: While posting document, document number can be manually assigned. Assigned document number should fall under the number range assigned to the type.
Screenshot showing parameters maintained in document type in sap.
(Number 18 refers to a number range like 100000 to 199999)
How document type helps in building reports?
Different reports are needed by management. Reports are prepared by fetching appropriate data and displaying on report as per requirement.
Document type plays crucial role in filtering documents to arrive at appropriate data for the report.
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