FI-AR Creating Master Data

So, master record. So, we have created tolerance groups, document number ranges, and, account groups we have created, 2GL accounts we have created. Then now we are going to create the customer master record. 

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Financial accounting, Accounts receivable. And, see we have created FS002 GL accounts we have created. That is the sundry debtors accounts. Sundry debtors for, say, 200301, and 200302. 302, sundry debtors for foreign customers. For foreign customers. 

And this is sundry debtors- domestic customers. 

These 2, the difference between ordinary GL account and Sundry debtors GL account, you should know. That is in control data tab, we have taken recon account type for account type is customers. 

If you don’t select this, this is ordinary GL account. There is a difference between ordinary GL account and recon account. Ordinary GL account, you can post directly to that account. But whereas today, recon accounts, wherever you have selected recon account type, you have to post only through the sub ledger. You cannot post directly to this account. So, there is a main difference. Come back. So okay. Accounts Receivable and master records. So, I’m going to create customer master. Customer master FD01 create. 

Right. And here account group. So, when we are going to create customer, system will ask me what is the account group in which you are going to create. So, already, we have created 2 customer groups that is starting with the DR. Domestic customer group DRLB.  Here, see domestic customer group, DRLB. Domestic customer group.

Here, customer number, I need not give because I have chosen internal number range. When creating the customer master data alright here, define account groups, its customer layouts. 

We have created 2 groups. Those 2 groups are going to be, available here. And when we have created the number range if you remember, create number ranges, assign number range. When we assign number ranges to the groups, say domestic customer group 09 we have created. So, what is 09. 

See, 09 from here to here, and I did not check the box here. If you are going to check box, then that will be external number range. That is manually, I have to give the external number. So, some companies, they follow external number range. Some companies, they may ask us to give okay internal number range. Where they will ask external number, range is where they want to create a customer number like based on, say some alphanumeric number they want to create.  So, in such case, there is no serial number for alphanumeric. So in such case, we are going to give external number range and that external number range means, say, XX , A to ZZZZZ. I can use alphanumeric number, I can use it. And external, even internal number also if you give number from to and give external between these numbers I can create external number range. That is, I can create customer group. So, but now what we have done here, we have not selected external number range. So that’s why system will take internal. I cannot give any number here. Right. 

In domestic customer group, for company code DRLB, I’m going to create. Enter. So, our company is, okay, pharmaceutical company.

And, now I’m going to create customer. Right? Customer, say for example, Sun Pharma Dealers. Hyderabad. And this is, 1, 2, 3, 4, 5, 6, 7, 8, 9. Maximum 10 digits it will take here, Search term. I can take, country India. So here it is going to be Hyderabad. Something like Abids. Some number I can take. 

So, this is and these are the fields which are going to be controlled by define account group with screen layout. So here we have created our, say domestic customer group. Domestic customer group. 

Double click on general data. Address. 

We made address required entry. So that’s why here see? 

Because we have selected required entry, system is showing us required entry here. So, these fields are going to be controlled from here. Similarly, right all fields. See name, search term, see search term A, name to, street, district, everything. All these fields are going to be controlled from there. And only first tab, there are so many tabs are there here. All these tabs are going to be used by sales and distribution consultants not by us. All sales related data is going to be entered and some bank accounts are also. Like here address etc, anyway we need address. That’s why I’m entering here and see control data. All these things we need if vendor is also a customer, we can use this Trading partner, industry. So many details are there. Payment transactions. Marketing, industry, unloading points where if we are going to sell to this party, where I’m going to unload the material, export data, who is the contact person, everything. All these details are going to be entered by sales and distribution consultants. Now apart from the address, I need some company code related data. So, company code related data see here, when you come back, company code data. Right? 

Here, what I have done, account management, double clicked, reconciliation required entry.

Right. Let us see the let us see here. 

Here, company code data. So all these data is what this is customer related data. Company code data means the company code related data towards for a customer. Because if I’m going to make sales through this customer to which GL account I have to post. Right? And similarly, some other information is there. Let us see what is that information. But that is completely related to our company code. Right? Company code related data. Click on company code data and here recon account means see here is a required entry. Because I made here required entry, system is asking required entry. Why should I make it required? Because what I want, see here, if you are going to select drill down, you’ll find GL accounts only recall accounts. 

Other accounts cannot be seen here at all because whatever the entry I’m going to post to this customer Sun Pharma, system will post to pharma this customer account at the same time to Sundry Debtors account. Sundry Debtors domestic customer. I’m selecting here. So, this sun pharma dealer is going to belong to domestic customer. So that’s why I’m assigning my domestic customer, domestic sundry debtors account.

That is domestic customers. So, this 200301. So, any sales whatever I make here to this fellow, that will be automatically posted to this account. And Sun Pharma, customer. Here, this is a customer one is Sun Pharma. Imagine. This is Sundry Debtors account. If I post any entry to Sun Pharma, it’ll be posted to even Sundry Debtors also. That’s what I’m going to set here. So, any entry, whatever you post to this, I want the amount to be posted to recon account also. Here, sorting key. Sorting means, you know, arrangement of line items within the account. In case of this customer account, how you are going to arrange? So, by posting date or invoice date, whatever it may be. 

Let us take G00001. Some other things are there. The head office, authorization group, release group. Interest indicator, if you want to calculate interest on the delayed payments, I have to assign here. This we’ll see when we go to the interest calculations data. Last key date. So, in case of real scenario, whatever the important data that we have and those things we can give, for the time being, not required. Payment transactions. 

In case of payment transactions, terms of payment. So, what are the terms of payment we are going to use to this fellow? So, payment terms are going to be, here standard payment terms are there. 

Payable immediately due net means immediately that seller has to make the payment. Number 2, within 14 days, 3% cash discount, Within 30 days, 2% cash discount, Within 45 days, due net. This means, see, we are going to make sales with 45 days credit period. Though I’m giving 45 days to him, what we are telling to the system is that in case if customer is going to make payment within 14 days, we’ll tell to the customer in order to attract cash discount. We tell him that in case if you are okay. I’m giving you 45 days credit. But in case if you are going to pay me 14 within 14 days, I’m going to give you 3% cash discount. So, for 1 lakh, 3,000. In case, if you are going to make the payment within 30 days, I’ll give you 2% discount. But if you are paying me after 30 days, sorry, I’m not going to give any. But 30 to 45 days, like, 31, 1st day to 45 days, they can make the payment. They will not get any discount. But after 45 days, if they pay, then we are going to charge interest to that fellow. So that is the condition. Like this 3, 4, 5, so many standard payment terms are there. In case if they have any specific payment terms, we have to configure that, sales and distribution consultants’ responsibility is that we are not going to create. SD consultants will do that. So maybe payment term 1,2,3, something like that, they will have. But, anyhow, what I’m taking for the time being, I’m taking 0001. That is payable due net immediately. Tolerance group. So, we have already created a tolerance group. What is the tolerance group? DRLB, DR01, tolerance group for customers. Here, if you remember, I have taken a 3 days grace period like that. So, create memo payment term. If you have anything things like that, we can use. Time until the check paid. See, there are so many fields are there. All fields are not required for us. Only those  receipt, either check payment or whatever it may be that can be given here. These things, right, for the time being, not required for us. And, see, because SAP has been developed keeping in view the requirements of worldwide companies, depending upon the requirements of so many countries, right, all the fields are given. So it doesn’t mean that we need to use all these things. Whatever is required, we’ll use it.

So, in case of Correspondence, dunning. 

Dunning means reminding. I think I told you in the beginning. So, dunning is a topic. We create that and we assign here, under dunning block. And Insurance. 

In fact, here insurance, when I’m going to, transport products to my customers, if something is going to happen in the middle, who is responsible? The customer or me? Until material is going to be reached to the customer, I am responsible, means, as a company, I’m responsible. So that’s why, generally, we take insurance. Even recently in 2012 in one company, they have taken around 10 crores worth of insurance. So, what they do? Whatever the material that they dispatch from the plan that will be entered and what they wanted us is, so whatever the material value that we enter into the system, so the insurance value should get reduced. Out of 10 crores, say for example, today, I have transported material worth of rupees 1 lakh. Right? So, 1 lakh should get reduced. 4 lakh 99,000 should appear in the balance of the insurance. So those things we have to write a program and that will be linked to here. Policy number, institution number, something like that, amount insured, everything can be given with little modifications we have given them. So, for that purpose, we can use it. So, all these things are provided in the customer master record.

So, let me come back. And again, I’ll create one more party. 

See here what we can do, I can create with reference to company code, DRLB, and customer. Whatever just now we have created, I can create. 

So what I’m telling to the system now, I’m creating new customer but with reference to this.  Except first screen, everything every screen will be the same just like the creation of GL account with template. Say for example, this is also company. Alright. Moon Pharma Trading Company. 

Let us check other fields. 

See. Already data is there because we have copied. Everything is there. Save it.

So, 2 customers we have created. Customer is ready now. We have GL account, sales and the sundry debtors is ready. Right now, let us post an accounting entry. First, we’ll post the entry and then we’ll see the GL account, customer account, everything we’ll see. So, in case of real scenario, if you want to raise the customer invoice, right, we don’t raise. Sales and distribution, that is from the warehouse, they’ll raise it and it will be generated and that will be automatically posted into financial accounting. But since we do not have any sales and distribution settings, that is the job of the SD consultant. What we do, whatever the entry that flows into the financial accounting, directly will post that entry into financial accounting. So even that provision is given here.

F-22 invoice general. I can raise an invoice directly. And there is one more here FB70 invoice, we can raise here or here. The difference between this and this is the same what we have the relation between FB50 and F-02. In F-02, line by line we have to enter. Here, multiline terms can be entered at a time. The same relation between FB50 and F-02 is the same relation between FB50 and F-02. So that’s why you can use anywhere. We’ll enter in both the ways, of course. Let us see. F-22 invoice general I’m using. 

So here, documented data. Actually, one more thing I need to tell you here. So, when you are going to make sales, say whenever I’m going to make sales, customer account data to sales. Customer account should be debited. Sales account should be credited and say why I should debit customer and creates sales. So, there is accounting principles. Debit what comes in, credit what goes out. Debit the receiver, credit the given. Debit all expenses, credit all incomes. So, this is this income. So, there are 3 fundamental golden principles there. You have to follow that. Based on that, these entries will be posted. Now we are going to debit the customer account. And as soon as you choose, system will post to sundry debtors account because we have already linked up customer account and sundry debtors, and we’ll be posting to sales. Now in case of GL, we have taken posting key debit 40, credit 50. Similarly, here, we are going to use debit 01, credit 15. Posting keys are going to be debit 40, credit 50. This is for GL. I think you may have a doubt what is the difference between debit and credit. In case of, general accounting system, debit and credit are one and the same. But in case of SAP, this is going to be changed. Why this has to be changed like this? I’ll show you here. 

Now as soon as you come here in the screen F-22, write document date 6. Posting date, 6. DR. What is DR? We have already given. Number range for document types. See customer documents. See, DR is nothing but customer invoice. So, we are raising customer invoice, doctor. Company code, INR.

See here, 01 account. System is showing customer accounts here, not GL accounts. I can select, say, moon pharma. If you take I want to post, say, sun pharma, 610021. Say, in case if I’m going to take 40 here as posting key, what is going to happen? If I take 40, what is that you can see here? 

If you give posting 40, you can see GL accounts. Because GL that is 40 will be used for GL accounts. But here, posting key, you take 01. By difference, it says 01 only. 01 is nothing but customer with invoice. So that’s why I’m taking 01. So, now since I have taken 1, system is going to show you customer debit. Enter. 

Let’s say amount. Let’s suppose 1 lakh 22,000. Here, say, customer, as soon as we take customer account, see here GL account 200301. What is this? This is nothing but recon account, sundry debtors account. I told you that whenever you post any entry to customer, that’ll be posted to recon account GL account. Whenever I am going to post to sales here 122, it is posting to here to, sales. Same here, as soon as I post here, system is posting to GL account. Customer account is sub ledger account. GL account is general ledger account. This is the accounting part. So, business area you can take, what business area you are going to post. You can say, DRHY. Customer sales. Sales means customer only so that’s why. Sales invoice raised. 

Now first line item is going to be invoice. This is debit, customer debit. Second line item should be sales, customer account data to sales. Sales is a GL account. So that’s why here we have to use 40 debit, 50 credit. So, credit 50. 

Right, Sun pharma, 1 lakh 22 My business area. And see payment terms. Payment term by default system has taken triple zero one because we have assigned payment term 0001 to the customer master data. And the B-line date, that is baseline date. Baseline date is nothing but 6/9. The date of invoice will be equal to baseline date. So, for calculation of any credit period etc., system takes this date. I can change this right from the invoice date to this. Print block, I can block a particular payment. Assignment, some number I can give. Here from serial number I can give. Here flow type, discount, percentage, etc. We’ll get it once we allow the discount that we’ll see later. Here, posting key. Now take 50. 50 is nothing but sales. 3 lakhs 1. Save it.

So, second line item, 1 lakh 22,000 sales invoice. 

So, 1 lakh 22,000. Sun Pharma debit, 50 credit sales. Save it. 

18 lakhs 1 posted. 

OBA7. Document type and number ranges. We have raised DR, customer invoice. See, 18 we have given. Let’s check 18. We have given number range. 

Right. For 18, first invoice posted. 18 lakhs 1. So, this is the link. Now second invoice I’m posting. I got one more thing here. What are the document that I have posted? 18 lakhs 1? Go to Document, then display. 

Sun Pharma dealer’s account is debit, 01 Debit, 50 credit. And I want to see Sun Pharma dealer’s account. It is customer account to which GL account it has posted means Sundry debtors account. If you want to see general ledger view. Now what is this view you are presently seeing? This is data entry view. For general ledger view, click on general ledger view. System will show you. 

See. This is general ledger view, sundry debtors, domestic customers. Sundry debtors account is debited and, sales account is created. Now I’ll show you there are 2 views now. one is customer, the other one is general ledger. So, we know that general ledger is nothing but FS10. Here you can see the general ledger. Right here, enter GL account 20301, I’ll show you customer account also, but this is general ledger account.

Here, it will see, 2 lakh 55000 to the one customer we have posted. 122, 133. 

Here, which customer is not given, but only Sundry debtors account it is posted. For me, in Sundry debtors, I’m not bothered. But if I am going to see my customer account, say, Sundry document entry account FD10. This is nothing but account of the customer. If you see this, you can view customer account. Sun Pharma. Just give the customer number. Company code, execute.

See. Balance. Debit. Customer account. Credit is nothing. No balance. 

Here you can see certain things. It is showing red. Red means open item, means we have raised invoice. We have not yet received the payment from customer till now. Document date, due date. Both are same because we have not given payment term is immediate. Red means open. What is meant by cleared? If payment is received, then we call it as cleared. So, clearing of open items is a topic, that we’ll see later. First of all, we have posted the invoices here and customer number, date, address, etc., and company code details, all these things. This is customer account, 2 invoices. If I’m going to receive payment, then this will be created. And here in the customer account, say period just like GL, 1234, now we are in the 6 period September. It’s showing 6 period, and Sun Pharma dealers. Doctor Reddy labs DRL is the company code. Even you can post foreign currency. System will take just like in GL account what we have seen. Same thing can be viewed here also. Here, the special GL, we’ll see when we go to advance. Advance payment is received. Now 255, this is the customer account, and that is general ledger account. So, this is, posting of invoice. Receipt of payment, we’ll see in the next session.