Posting key is a two digit number which plays a very crucial role in posting an accounting document. As per standard practice, each key is used for a specific business transaction. Standard sap offer large number of predefined key. Custom key can also be created but often not required since large number of predefined key are good enough to serve the business requirement.
Let’s understand with example
Double book keeping mandates that, in every document sum of debit amount should be equal to sum of credit amount. Net of debit and credit in an accounting document should always be zero. Hence every accounting document will have some line items with debit balance and some line items with credit balance.
For example consider below document
Dr. is represented by number 40
Cr. Is represented by number 50
These numbers are called posting key. There are many more keys, each having specific purpose.
Posting key controls below
Type of posting: Debit or Credit
A Posting Key can only perform one action either debit or credit.
Example: key 40 is for debit, key 50 is for credit
Permitted account type: Asset/ customer/ vendor/ material/ GL account
In any accounting document, line item will have below fields entered
Posting Key + account + amount
Posting Key decides which type of account can be used with it.
Field status: Suppress/ display/ optional/ required
As we already know, while posting an accounting document “input fields behave as per their status in field status group which is assigned to GL master”.
But field status group is not the only thing which controls field status; field status is also controlled by posting key(PK).
Field status conflicts between posting key and field status group
For a particular field, status in posting key might be different from status in field status group.
Then sap finalized the status in below order:
First priority Suppress: If the field status is ‘suppress’ in any of the two (posting key and field status group). Field status suppress prevails while posting document.
Second priority Display: If the field status is ‘display’ in any of the two (posting key and field status group). Field status display prevails while posting document.
Third priority Optional: If the field status is ‘optional’ in any of the two (posting key and field status group). Field status optional prevails while posting document.
Last priority Required: This field status gets the last preference.
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