Tax on sales and purchases and Withholding tax

Tax on sales and purchasesTaxes on sales and purchases are levied on every sales transaction in accordance with the principles of VAT. This applies to input and output tax, for example.Input tax is calculated using the net invoice amount and is charged by the vendor.Output tax is calculated using the net price of products and is charged to the customer.Companies can offset input tax against output tax, paying the balance to the tax authorities. Tax authorities can set a nondeductible portion for input tax which cannot then be claimed from the tax authorities.

Withholding taxIn some countries, a portion of the invoice amount must be withheld for certain vendors
and paid or reported directly to the tax authorities.SAP currently provides two functions for calculating withholding tax: Classic withholding tax and extended withholding tax.

Extended withholding tax includes all the features of classic withholding tax and, in addition, also fulfills a number of further country-specific requirements.If you wish to implement the withholding tax functions, you should choose extended
withholding tax.

Chart of Accounts and it's types

Charts of accounts can have three different functions in the system:
•        Operating chart of accountsThe operating chart of accounts contains the G/L accounts that you use for posting in your
company code during daily activities. Financial Accounting and Controlling both use this
chart of accounts.
You have to assign an operating chart of accounts to a company code.
•        Group chart of accountsThe group chart of accounts contains the G/L accounts that are used by the entire
corporate group. This allows the company to provide reports for the entire corporate
group.
The assigning of an corporate group chart of accounts to a company code is optional.
•        Country-specific chart of accountsThe country-specific chart of accounts contains the G/L accounts needed to meet the
country's legal requirements. This allows you to provide statements for the country's legal
requirements.
The assigning of an country-specific chart of accounts to a company code is optional.

Assign sales order to profit center

It is necessary to assign SD sales orders to profit centers in order to reflect receivables, sales revenues, and sales deductions on profit centers.

The profit center assignment is also passed on from the sales order through the supply chain: sales order -> delivery note-> goods issue-> billing document. This means that the when a goods issue is posted, the corresponding revenue value for the goods is also passed on to the profit center of the sales order.

Sales orders are divided into header data and item data. Each order item is assigned separately to a profit center, since this is the finer level of detail.

The system proposes the profit center of the material in the supplying plant as the default profit center. Consequently, you usually do not need to enter a profit center manually. This default supports both a product oriented and geographical division of your organization into profit centers.

You might want to divide your company into profit centers according to a sales-oriented structure. In that case, you can define substitution rules in Customizing of classic Profit Center Accounting or new General Ledger Accounting. The system uses these substitution rules to determine the profit center from sales orders. You also need to activate these substitutions for each individual controlling area.

SAP ECC6 FI Tcodes

TCode Transaction Text
F-01 Enter Sample Document
F-02 Enter G/L Account Posting
F-03 Clear G/L Account
F-04 Post with Clearing
F-05 Post Foreign Currency Valuation
F-06 Post Incoming Payments
F-07 Post Outgoing Payments
F-18 Payment with Printout
F-19 Reverse Statistical Posting
F-20 Reverse Bill Liability
F-21 Enter Transfer Posting
F-22 Enter Customer Invoice
F-23 Return Bill of Exchange Pmt Request
F-25 Reverse Check/Bill of Exch.
F-26 Incoming Payments Fast Entry
F-27 Enter Customer Credit Memo
F-28 Post Incoming Payments
F-29 Post Customer Down Payment
F-30 Post with Clearing
F-31 Post Outgoing Payments
F-32 Clear Customer
F-33 Post Bill of Exchange Usage
F-34 Post Collection
F-35 Post Forfaiting
F-36 Bill of Exchange Payment
F-37 Customer Down Payment Request
F-38 Enter Statistical Posting
F-39 Clear Customer Down Payment
F-40 Bill of Exchange Payment
F-41 Enter Vendor Credit Memo
F-42 Enter Transfer Posting
F-43 Enter Vendor Invoice
F-44 Clear Vendor
F-46 Reverse Refinancing Acceptance
F-47 Down Payment Request
F-48 Post Vendor Down Payment
F-49 Customer Noted Item
F-51 Post with Clearing
F-52 Post Incoming Payments
F-53 Post Outgoing Payments
F-54 Clear Vendor Down Payment
F-55 Enter Statistical Posting
F-56 Reverse Statistical Posting
F-57 Vendor Noted Item
F-58 Payment with Printout
F-59 Payment Request
F-60 Maintain Table: Posting Periods
F-62 Maintain Table: Exchange Rates
F-63 Park Vendor Invoice
F-64 Park Customer Invoice
F-65 Preliminary Posting
F-66 Park Vendor Credit Memo
F-67 Park Customer Credit Memo
F-90 Acquisition from purchase w. vendor
F-91 Asset Acquis. Posted w/Clearing Acct
F-92 Asset Retire. frm Sale w/ Customer
F.01 ABAP Report: Financial Statements
F.02 Compact Journal
F.03 Reconciliation
F.04 G/L: Create Foreign Trade Report
F.05 Foreign Currency Valuation
F.06 Foreign Currency Valuation:G/L Assts
F.07 G/L: Balance Carryforward
F.08 G/L: Account Balances
F.09 G/L: Account List
F.0A G/L: FTR Report on Disk
F.0B G/L: Create Z2 to Z4
F.10 G/L: Chart of Accounts
F.11 G/L: General Ledger from Doc.File
F.12 Adv.Retrn for Tax on Sales/Purchases
F.13 Automatic Clearing without Currency
F.14 ABAP/4 Report: Recurring Entries
F.15 ABAP/4 Report: List Recurr.Entries
F.16 ABAP/4 Report: G/L Bal.Carryforward
F.17 ABAP/4 Report: Cust.Bal.Confirmation
F.18 ABAP/4 Report: Vend.Bal.Confirmation
F.19 G/L: Goods/Invoice Received Clearing
F.1A Customer/Vendor Statistics
F.1B Head Office and Branch Index
F.20 A/R: Account List
F.21 A/R: Open Items
F.22 A/R: Open Item Sorted List
F.23 A/R: Account Balances
F.24 A/R: Interest for Days Overdue
F.25 Bill of Exchange List
F.26 A/R: Balance Interest Calculation
F.27 Periodic Account Statements
F.28 Customers: Reset Credit Limit
F.29 A/R: Set Up Info System 1
F.2A A/R Overdue Int.: Post (Without OI)
F.2B A/R Overdue Int.: Post (with OI)
F.2C Calc.cust.int.on arr.: w/o postings
F.2D Customrs: FI-SD mast.data comparison
F.2E Reconciliation Btwn Affiliated Comps
F.2F Management Acct Group Reconciliation
F.2G Create Account Group Reconcil. G/L
F.2I Document Assignment User Settings
F.2K Manage Templates for Notifications
F.30 A/R: Evaluate Info System
F.31 Credit Management - Overview
F.32 Credit Management - Missing Data
F.33 Credit Management - Brief Overview
F.34 Credit Management - Mass Change
F.35 Credit Master Sheet
F.36 Adv.Ret.on Sls/Pur.Form Printout(DE)
F.37 Adv.rept.tx sls/purch.form print (BE
F.38 Transfer Posting of Deferred Tax
F.39 C FI Maint. table T042Z (BillExcTyp)
F.40 A/P: Account List
F.41 A/P: Open Items
F.42 A/P: Account Balances
F.44 A/P: Balance Interest Calculation
F.45 A/P: Set Up Info System 1
F.46 A/P: Evaluate Info System
F.47 Vendors: calc.of interest on arrears
F.48 Vendors: FI-MM mast.data comparison
F.4A Calc.vend.int.on arr.: Post (w/o OI)
F.4B Calc.vend.int.on arr.: Post(with OI)
F.4C Calc.vend.int.on arr.: w/o postings
F.50 G/L: Profitability Segment Adjustmnt
F.51 G/L: Open Items
F.52 G/L: Acct Bal.Interest Calculation
F.53 G/L: Account Assignment Manual
F.54 G/L: Structured Account Balances
F.56 Delete Recurring Entry Documents
F.57 G/L: Delete Sample Documents
F.58 OI Bal.Audit Trail: fr.Document File
F.59 Accum.Clas.Aud.Trail: Create Extract
F.5A Accum.Clas.Aud.Trail: Eval.Extract
F.5B Accum.OI Aud.Trail: Create Extract
F.5C Accum.OI Audit Trail: Display Extr.
F.5D G/L: Update Bal. Sheet Adjustment
F.5E G/L: Post Balance Sheet Adjustment
F.5F G/L: Balance Sheet Adjustment Log
F.5G G/L: Subseq.Adjustment(BA/PC) Sp.ErA
F.5I G/L: Adv.Rep.f.Tx on Sls/Purch.w.Jur
F.61 Correspondence: Print Requests
F.62 Correspondence: Print Int.Documents
F.63 Correspondence: Delete Requests
F.64 Correspondence: Maintain Requests
F.65 Correspondence: Print Letters (Cust)
F.66 Correspondence: Print Letters (Vend)
F.70 Bill/Exchange Pmnt Request Dunning
F.71 DME with Disk: B/Excha. Presentation
F.75 Extended Bill/Exchange Information
F.77 C FI Maintain Table T045D
F.78 C FI Maintain Table T045B
F.79 C FI Maintain Table T045G
F.80 Mass Reversal of Documents
F.81 Reverse Posting for Accr./Defer.Docs
F.90 C FI Maintain Table T045F
F.91 C FI Maintain Table T045L
F.92 C FI Maintain T012K  (Bill/Exch.)
F.93 Maintain Bill Liability and Rem.Risk
F.97 General Ledger: Report Selection
F.98 Vendors: Report Selection
F.99 Customers: Report Selection
F/LA Create Pricing Report
F/LB Change pricing reports
F/LC Display pricing reports
F/LD Execute pricing reports
F00 SAPoffice: Short Message
F000 Accounting
F010 ABAP/4 Reporting: Fiscal Year Change
F01N Debit Position LO Single Reversal
F01O Vacancy RU single reversal
F01P Accruals/deferrals single reversal
F01Q Debit position MC single reversal
F01R MC settlement single reversal
F01S Reversal of Periodic Postings
F01T Reverse General Contract Accr./Def.
F04N Vendor Foreign Currency Valuation
F05N Customer Foreign Currency Valuation
F06N Foreign Currency Val. (G/L Accounts)
F101 ABAP/4 Reporting: Balance Sheet Adj.
F103 ABAP/4 Reporting: Trnsfr Receivables
F104 ABAP/4 Reporting: Receivables Prov.
F107 FI Valuation Run
F110 Parameters for Automatic Payment
F110S Automatic Scheduling of Payment Prog
F111 Parameters for Payment of PRequest
F11CS Config.TR Display Payment Program
F11CU Config.TR Maintain Payment Program
F13E Automatic Clearing With Currency
F15 F15 Interface
F150 Dunning Run
F48A Document Archiving
F53A Archiving of G/L Accounts
F53V Management of G/L Account Archives
F56A Customer Archiving
F58A Archiving of Vendors
F61A Bank archiving
F64A Transaction Figure Archiving
F66A Archiving of Bank Data Storage
F8+0 Display FI Main Role Definition
F8+1 Maintain FI Main Role Definition
F8+2 Display FI Amount Groups
F8+3 Maintain FI Amount Groups
F8+4 Maintain Account Assignment Groups
F8+5 Maintain General Role Definition
F801 Create Payment Request
F802 Change Payment Request
F803 Display Payment Request
F804 Changes to Payment Requests
F805 Delete Payment Request
F806 Create Payment Request
F807 Change Posted Payment Request
F808 Post Payment Request
F809 Post exchange rate differences
F810 Number Ranges Payment Request
F811 Create Collective Payment Request
F812 Change Collective Payment Request
F813 Delete Collective Payment Request
F814 Reverse Collective Payment Request
F815 Display Collective Payment Request
F816 Reset Reversal Coll. Payt Request
F817 Release Collective Payment Request
F820 Coll. Payment Request Number Ranges
F821 Default Doc. Type for Request Type
F822 Set Automatic Payment Block
F823 Revenue Type/Object Class Assignment
F824 Print Request

Currencies are valid in Controlling

Controlling area currency
The system uses this currency for cost accounting. This currency is set up when you create the controlling area. It is based on the assignment control indicator and the currency type.

• Object currency
Each object in Controlling, such as cost center or internal order, may use a separate currency specified in its master data. When you create an object in CO, the SAP system defaults the currency of the company code to which the object is assigned as the object currency. You can specify a different object currency only if the controlling area currency is the same as the company code currency. There is an object currency for the sender
as well as one for the receiver.

• Transaction currency
Documents in Controlling are posted in the transaction currency. The transaction currency can differ from the controlling area currency and the object currency. The system automatically converts the values to the controlling area currency at the exchange rate specified.

The system always translates actual data with the average rate (exchange rate type M).

You store the exchange rate type for each currency. You can specify a different exchange rate type for planning data in the version.

All three currencies are saved in the totals records and the line items. This enables you to use the different currencies for evaluations in the information system. This is only possible if you specified that all currencies should be updated for the given controlling area.

Overhead Cost Controlling

The key areas of Overhead Cost Controlling are:
Cost Element Accounting
Cost and Revenue Element Accounting details which costs and revenues have been incurred. Accrual is
calculated here for valuation differences and additional costs. Cost Accounting and Financial Accounting are
also reconciled in Cost Element Accounting. This means that the tasks of Cost and Revenue Element
Accounting stretch beyond the bounds of Overhead Cost Controlling.
Cost Center Accounting
Cost Center Accounting determines where costs are incurred in the organization. To achieve this aim, costs
are assigned to the subareas of the organization where they have the most influence.

By creating and assigning cost elements to cost centers, you not only make cost controlling possible, but also
provide data for other application components in Controlling, such as Cost Object Controlling. You can also
use a variety of allocation methods for allocating the collected costs of the given cost center/s to other
controlling objects.
Internal orders
Overhead Orders are internal orders used either to monitor overhead costs for a limited period, or overhead
incurred by executing a job, or for the long-term monitoring of specific parts of the overhead. Independently of
the cost center structure, internal orders collect the plan and actual costs incurred, enabling you to control the
costs continuously. You can also use internal orders to control a cost center in more detail. You can assign
budgets to jobs. These budgets are then monitored automatically by the SAP system to ensure that they are
kept to.
Activity-Based Costing
In contrast to the responsibility and function-oriented basis of Cost Center Accounting, Activity-Based Costing
provides a transaction-based and cross-functional approach for activity output in which several cost centers
are involved. The emphasis is not on cost optimization in individual departments, but the entire organization.

Purpose of Controlling

Controlling provides you with information for management decision-making. It facilitates coordination,
monitoring and optimization of all processes in an organization. This involves recording both the consumption
of production factors and the services provided by an organization.

As well as documenting actual events, the main task of controlling is planning. You can determine variances by comparing actual data with plan data. These variance calculations enable you to control business flows.

Income statements such as, contribution margin accounting, are used to control the cost efficiency of individual areas of an organization, as well as the entire organization.

Controlling (CO) and Financial Accounting (FI) are independent components in the SAP system. The data flow between the two components takes place on a regular basis.

Therefore, all data relevant to cost flows automatically 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 relevant accounts in Financial Accounting are managed
in Controlling as cost elements or revenue elements. This enables you to compare and reconcile the values
from Controlling and Financial Accounting.

Although Controlling can be implemented independently of FI, there is some basic configuration that needs to be done in FI.