Once the chart of account created, the next step is to assign a company code to the chart of account. Assigning company code to the chart of account is mandatory. The link is established between the company code and chart of account through assignment.
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Fiscal year is a period of twelve months for a company. The company can regularly creates financial statements and checks inventories in the fiscal year. The fiscal year in SAP is defined as a Fiscal Year Variant. Fiscal year variant contains the number of posting periods and number of special periods in a fiscal year.
After configuration of Fiscal Year Variant, it needs to be assigned to company code. The link between the Fiscal Year Variant and Company code is established through Assignment. The Fiscal Year Variant is taken from the company code when company code assigned to a Fiscal year Variant. Either one or more company codes can be assigned to Fiscal Year Variant.
Posting period variant are used to specify which company codes are open for posting. Posting period variants are cross-company codes and must assign them to company codes.
After creating Posting Period Variants, it needs to be assigned to company code.The link between the Posting Period Variant and Company code is established through Assignment.
Posting periods can be defined in fiscal year variants. Posting periods can be open and close for posting. As many periods as require can be open for posting simultaneously.
Posting Key is a two-digit numeric key.It is defined to control the entry of document line items in a FI Transaction. Posting Key specifies the line item is either debit or credit entry, account type and the screen layout of line items.
Document type key is used to distinguish between business transactions to be posted and classify accounting documents. The document type is entered in the document header and it applies to the whole document.
One or more document types can assign to number range. The number range is defined by document type and is responsible for generate the document number.
Almost every country has taxable transactions. The taxable transactions can be incoming or outgoing where input or output tax should apply. For example, customer/vendor transactions. The creation of tax codes for taxable transactions includes the below steps –