SAP Blog Postings

BUSINESS TRANSACTION EVENTS [ BTE ]

Compared with earlier releases, the software delivery process now looks quite different. Previously, only two parties were involved in the delivery: SAP the Software provider, and the customer who uses it. Customers could enhance this standard using customer exits. However, now that the software is more component-oriented, more parties have become involved in the process.

All of the parties involved in this process are potential users and providers of enhancements. This requirement cannot be satisfied by customer exits, which can only be used once. Consequently, SAP developed a new enhancement technique in Release 4.0, which allows enhancements to be reused.

Business Transaction Events (BTE) allows you to attach additional components, in the form of a function module, for example, to the R/3 system.

This enhancement technique is also called Open FI that were developed for Financial Accounting component

Business Transaction Events use one of the following types of interfaces:

1. Publish & Subscribe interfaces: These interfaces inform external software that certain events have taken place in an SAP standard application and provide them with the data produced. The external software cannot return any data to the R/3 System.

2. Process interfaces: These interfaces are used to control a business process differently than the way in which it is handled in the standard R/3 System. They intervene in the standard process, and return data to the SAP application.

1. Publish & Subscribe interfaces

• Allow you to start one or more (multiple) additional operations when a particular event is triggered. They do not influence the standard R/3 program in any way.

• Multiple operations do not interfere with each other.

• Add-on components can only import data.

• Possible uses: Additional checks (authorizations, existing duplicates, and so on)

2. Process interfaces:

• In process interfaces data exchange takes place in both directions with process interfaces. This influences the number of additions that can be attached to the interface.

• When an event is triggered, a process in the standard program can only be replaced by a single external process using the process interface.

• If you are using an add on from an SAP partner that uses a process interface, this enhancement is processed at runtime. If you choose to use this same process interface for one of your own developments, the partner enhancement is dismissed and your own enhancement is processed at runtime instead.

• How to find out Business Transaction Events? Follow the URL this will guide to find out BTE.
• How to implement Business Transaction Events?  If you are looking for information how to implement Business Transaction Events, here is the URL, which describes steps by step.
• List of Business Transaction Events: This URL gives a ready available list of business transaction events.
• Usage of business transaction events: This article provides a step-by-step guide on the usage of Business Transaction Events, as an Enhancement technique in the Financial Accounting Module of the SAP R/3 system. The Open FI enhancement technique was developed in the Financial Accounting component [ Follow Link……]
• Usage of business transaction events : This URL gives  step by step BTE implementation steps on ” How to Prevent a user to Post a document parked by someone else?”
• SAP Reference documents provides helpful tips for successful implementation of Business Transaction Events.
• Accounts payable department often get duplicate vendor invoices. SAP’s standard solution  of duplicate check box in vendor master is not enough to stop duplicates invoices being accounted and paid by accounts payable department. By implementing BTE to can prevent it  through extra check point

BENEFITS OF SAP GENERAL LEDGER OVER CLASSIC GENERAL LEDGER

The SAP General Ledger ( Formally called New GL) in mySAP ERP has the following advantages over the Classic General Ledger in R/3 Enterprise:

• Parallel Accounting: In the new General Ledger, you can carry out parallel accounting using accounting solution (as in R/3) or using ledger solution ledgers. mySAP provides standard functions and reports to cater  parallel accounting.

•  Segmental Reporting: mySAP comes with a new entity called “Segment”. Now with SAP GL you can use new entity for segmental reporting to comply IAS, U.S. GAAP reporting requirements.

•  Extended Data Structure: in mySAP SAP has provides brand new total table [FAGLFLEXT], actual line item table [FAGLFLEXA], and plan line item table [FAGLFLEXP] with addition field dimension. In addition, you can enhance these new tables with user-defined fields. Many standard reports can evaluate the information from the user-defined fields.

•  Document Splitting: In mySAP financial you can use the new ‘Document Splitting’ function (online split), which helps you to create financial statements at company code level, segment level, profit center level. For each document, the system then creates a zero balance for the relevant entity, for example, for the segment.

• FI CO Reconciliation: Due to document splitting and real-time from FI to CO and CO to FI, you no longer have to carry out time-consuming reconciliation task between FI and CO for the end of period.

•  Tracebility: In mySAP ERP financial, now you can navigate from CO to FI. In addition this new enhanced future, now you can see individual line that originated in CO and posted to FI. In classic general ledger system generate a summarized posting when you run reconciliation posting.  Due to real-time posting, now system generates financial posting for every CO lines those crosses organizational dimensions ( of course you need configuration for this)

•  User Interface: The new General Ledger uses the same interfaces as the General Ledger in R/3. As a result, users do not require any additional training.

•  Reduced Components: In classic general ledger SAP customers uses various SAP components to achieve reporting requirements, for example General ledger accounting, special general ledger, profit center accounting etc.. In SAP GL, SAP has combined together functionalities of these components in a packaged solution.

•  Reduction in closing activities: With implementation of mySAP ERP, you can certainly reduce some of the activities for your closing activities, these are;

• You no need to CO FI reconciliation ledger;

•  In classic GL you need run various transactions for to carry balance carry forward, now in mySAP GL, you can achieve this by running one transaction code.

•  You need not to run balance sheet and income statement adjustment.

•  Drilldown Reporting: In mySAP  SAP provides drilldown reports for general ledger, accounts payable, accounts receivable. In drilldown reports you can navigate from one dimension to another while you are in the reports.

SAP’S GENERAL STATUS MANAGEMENT FUNCTIONALITY

General Status Management replaced order status management functionality in recent SAP releases (4.6C).  This discussion will address general status management, as this is how SAP allows user statuses for controlling objects in this and future releases.

General Status Management applies to internal orders, project definitions, WBS elements, production orders and many other objects in SAP.  For the purposes of this discussion we will concentrate on status management for internal orders and WBS elements.  A list of all objects relevant for status management will be made available upon request.  Here is the URL.

( This is a very good article on order status management. I hope you will like it.)

ACCOUNT DETERMINATION : RETAINED EARNING ACCOUNT

 In accounting, retained earnings refer to the portion of net income which is retained by the corporation rather than distributed to its owners as dividends.

Similarly, if the corporation takes a loss, then that loss called variously retained losses, accumulated losses or accumulated deficit. Retained earnings and losses are cumulative from year to year with losses offsetting earnings.

Retained earnings are reported in the shareholders’ equity section of the balance sheet. Companies with net accumulated losses may refer to negative shareholders’ equity as a shareholders’ deficit.

 The term retained earning account represents a general ledger account where you are accumulating net balance of incomes and expenses.

 After year-end closing, you do year-end balance carry forward  to transfer  balances to  your new fiscal year  through transaction code  F.16 [Menu Path = Accounting  //  Financial Accounting  // General Ledger  //  Periodic Processing // Closing // Carrying Forward // Balance Carryforward ]  in classic ledger and transaction code FAGLGVTR [Menu Path = Accounting  //  Financial Accounting  // General Ledger  //  Periodic Processing // Closing // Carrying Forward // Balance Carryforward ( New) ] . System carry forwards closing balance of balance sheet account to same general ledger account, while system calculates net balances on income statement account (Incomes GL accounts & Expenditure GL accounts) and carry forward the net balances to retained earning accounts.

SAP doesn’t restrict the maximum number of retained accounts you can have, but you need to have at least one retained account for your chart of account. Without a retained account determination you cannot create general ledger master record.

 You can reach the configuration screen of retained earning account determination by following the navigation options given below;

IMG Menu Path:  IMG // Financial Accounting // General Ledger Accounting // G/L Accounts // Master Data // Preparations // Define Retained Earnings Account

Transaction Code: OB53

The above screen shows retained earning account determination for chart of account INT. This is very simple configuration screen.

Field [P & L statement] represent retained account indicator. This is one character ID to identify correct retained earning account.

Field [Account] represents a place holder for GL account.

In the above screen you can assign another GL account with indicator Y (as an example), if you want to add second retained account.

[Note: Retained earning accounts are chart of account specific, not company code specific.]

When you create a general master report, system will come up with a popup window to select retained earning account, in case of multiple retained earning account environment, for assignment of retailed earning account to general ledger master.  In case of single retained earning account, system automatically assigns retained earning account to general ledger master records.

-          System displays highlighted portion of the above screen only when you have multiple retained earning account, if you have defined one retained earning account, you will not see highlighted portion of the above screen

-          System stores retained earning account information in the general master data table “SKA1” and in field “GVTYP”

-          You have assigned multiple retained earning account assigned to your chart of account and while creating general ledger master records you are trying to save it without assigning a retained earning account,  you will get a error message saying “Make an entry in field “P&L statement acct type” Message no. FH740″

 During the year end, when you run balance carry forward transaction code F.16 (in case of SAP GL FAGLGVTR),

• System internally looks for transaction key “BIL” and chart of account to assigned company code.
• Once system found chart of account from company code, system looks an all general ledger accounts with “P&L statement acct” type and from the general ledger master, system finds associated retained account indicator.
• System updates related retained account with net results( Profit = Income – Expenses ), ( Loss = Expenses – Income)

Let us move forward to another account determination process….  Keeps on visiting my blog pages…

 I have one question for all of blog reader. Do you know why we need multiple retained earning accounts?

SAP ACCOUNT DETERMINATIONS

The term account determination is extensively used in SAP financial account while posting a   transaction manually or through interface or through feeder system i.e. Sales and Distribution, Material Management, Human Resources etc. The word account determination itself tells its meaning, this is a process to determine correct general ledger number where system will post financial data.

The account determination process can be either a simple process or more cumber some to understand. In order to determine correct general account, we need to configure SAP system. The configuration of account determination for particular process involves one or more steps. In order to work account determination correctly, the SAP consultant needs to understand the complete business process and business requirements. We can divide account determination process into two types (1) transactions that are originating within financial account and (2) transactions that are originated from outside of financial accounting.

Let us start with financial transactions that are originating within financial accounts. It is not possible to cover all account determination process; however I will try to cover few of them.

1. Account determination for retained earning account; read more…
   
2. Account determination for realized and un realized foreign exchange gains / losses;
3. Account determination for arrears  interest and / or balance interest calculation;
4. Account determination for group general ledger account;
5. Account determination for alternative general ledger master,
6. Account determination for cash discount availed;
7. Account determination for cash discount granted;
8. Account determination for under payment / over payment;
9. Account determination for automatic payment program;
10. Account determination for lock-box posting;
11. Account determination for electronic bank statement;
12.  Account determination for cash journals;

Among the transactions that are originating outside of financial account for which we need to setup account determination few are;

1. Revenue account determination, transactions that are originating from sales and distribution modules;
2. Inventory account determination that where originating from material management modules;
3. Human resources cost  those originates from human resources modules;

 In my SAP Blog pages I will discuss these account determination processes, so keep visiting my blog for new postings or subscribe for RSS feed.