SAP ERP Financials and FICO Handbook

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272 CHAPTER 7 SPECIAL AREAS The following steps need to be carried out to use a lockbox: 1. Define House Bank (FI12): In this step, you will create a house bank, bank ID, and account ID. Each house bank of a company code is represented by a bank ID in the SAP system, and every account at a house bank is represented by an account ID. In the SAP system, you use the bank ID and the account ID to specify bank details. These specifications are used, for example, for automatic payment transactions to determine the bank details for payment. Path : SAP Customizing Implementation Guide → Financial Accounting → Bank Accounting → Bank Accounts → Define House Banks 2. Define Lockboxes for House Bank (SPRO) : In this step, you define your lockbox accounts at the house banks. Thus, on the outgoing invoice you can inform your customer of the lockbox to which payment is to be made. By specifying this, you can optimize the payment transactions. The lockbox procedure is currently used only in the United States. Path: SAP Customizing Implementation Guide → Financial Accounting → Bank Accounting → Bank Accounts → Define House Banks 3. Define Lockboxes for House Banks (SPRO) : In this activity, you store control data for the lockbox procedure. This data is needed for importing lockbox files sent by banks. Currently, only BAI and BAI2 file formats are supported by SAP solutions. Path: SAP Customizing Implementation Guide → Financial Accounting → Bank Accounting → Bank Accounts → Define Lockboxes for House Banks 4. Define Posting Data (SPRO) : In this activity, you store information needed to process particular lockbox data and generate postings. The Destination and Origin are routing information and defined by your bank. For every unique destination/ origin, posting information is needed to create the following postings: G/L posting—Debit bank account (incoming checks) and credit payment clearing account A/R posting—Debit payment clearing account and credit customer account n n Path: SAP Customizing Implementation Guide → Financial Accounting → Bank Accounting → Business Transactions → Payment Transactions → Lockbox → Define Posting Data The following steps need to be carried out from the application side: 1. Main Lockbox Program to Upload Data (FLB2): 2. Post Processing of Lockbox Data (FLB1):
7.5 REVENUE RECOGNITION 273 7.5 REVENUE RECOGNITION The revenue recognition principle arises from accrual accounting and the matching principle. Accrual accounting and the matching principle help the user determine how a business entity will determine whether a particular transaction will be treated as an expense or revenue. In accrual accounting, revenues are recognized when you have realized and you have performed, i.e., when goods are transferred or services rendered, no matter when cash is received. In cash accounting, revenues are recognized when you have received cash, regardless of the timing of goods or services sold. Revenue recognition depends upon the nature of the transaction. From an academic point of view, transactions can be broadly divided into four types: (1) selling inventory, (2) selling services, (3) leasing activities, and (4) selling of assets other than inventory. Revenue recognition occurs from four types of transactions: 1. Revenue from selling inventory is recognized at the date of sale, which is often interpreted as the date of delivery. 2. Revenue from rendering services is recognized when services are completed and billed. 3. Revenue from permission to use a company’s assets (e.g., interest for using money, rent for using fixed assets, and royalties for using intangible assets) is recognized as time passes or as assets are used. 4. Revenue from selling an asset other than inventory is recognized at the point of sale when it takes place. Revenue recognition mostly applies when you are billing your customer in advance. For example, you entered a service contract (such as a maintenance contract) with your customer for $12,000 for one year. As per payment terms, you billed your customer in advance. Therefore, as of January 1, you billed your customer for an entire year and the customer paid. At the end of January, you can treat $1,000 as your income and the remaining $11,000 remains as a liability.
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SAP ® ERP Financials and FICO Hand
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THE JONES AND BARTLETT PUBLISHERS S
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World Headquarters Jones and Bartle
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ABOUT THE AUTHOR A graduate in comm
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viii TABLE OF CONTENTS 3.5 Cost Cen
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AN INTRODUCTION TO SAP SOFTWARE SAP
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xiv PREFACE n n n n n Chapter 7—S
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2 CHAPTER 1 INTERVIEW QUESTIONS AND
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10 CHAPTER 1 INTERVIEW QUESTIONS AN
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Chapter 2 CERTIFICATION QUESTIONS A
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2.1 QUESTIONS 97 9. What would be t
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2.1 QUESTIONS 99 21. You can only h
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2.1 QUESTIONS 101 33. State True or
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2.1 QUESTIONS 107 66. Posting keys
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2.1 QUESTIONS 109 79. The company c
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2.1 QUESTIONS 111 92. When you canc
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2.1 QUESTIONS 113 c. You can assign
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2.1 QUESTIONS 115 114. State True o
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2.1 QUESTIONS 117 126. The credit c
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2.1 QUESTIONS 119 140. Negative rev
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2.1 QUESTIONS 121 154. A shortened
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2.2 ANSWERS 123 168. Once you cross
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2.2 ANSWERS 125 80. a-True, b-False
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Chapter 3 ISSUES AND RESOLUTIONS A
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3.2 G/L ACCOUNTING 129 posting key,
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3.2 G/L ACCOUNTING 131 3. Switch of
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3.2 G/L ACCOUNTING 133 The error is
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3.3 AP 135 Ranking order represents
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3.3 AP 137 You can use the BnkT (ba
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3.3 AP 139 transaction code FCHU, w
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3.3 AP 141 Issue No.: 23 While post
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3.4 AM 143 While configuring the pa
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3.4 AM 145 1. Recalculate depreciat
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3.4 AM 147 Issue No.: 36 While capi
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3.4 AM 149 Issue No.: 41 The user i
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3.4 AM 151 for 2007. Now the user w
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3.4 AM 153 If you are trying to put
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3.4 AM 155 In the screen that appea
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3.7 NEW G/L 157 A customer and vend
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160 CHAPTER 4 CONFIGURATION STEPS S
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162 CHAPTER 4 CONFIGURATION STEPS S
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164 CHAPTER 4 CONFIGURATION STEPS F
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174 CHAPTER 4 CONFIGURATION STEPS 4
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182 CHAPTER 4 CONFIGURATION STEPS 4
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Chapter 5 USER TRANSACTION CODES In
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5.1 G/L ACCOUNTING 189 Posting to G
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5.1 G/L ACCOUNTING 191 Display G/L
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5.2 AP 193 Function Name and Path C
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5.2 AP 195 Function Name and Path I
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5.2 AP 197 Period-end Transactions
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5.3 AR 199 5.3 ACCOUNTS RECEIVABLE
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5.3 AR 201 Function Name and Path S
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5.3 AR 203 Period-end Transactions
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5.4 AM 205 5.4 ASSETS MANAGEMENT (A
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5.4 AM 207 Assets Retirement/ Trans
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5.5 CO-CEL 209 Function Name and Pa
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5.6 CO-CCA 211 Function Name and Pa
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5.7 CO-IO 217 Information Systems F
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5.7 CO-IO 219 Function Name and Pat
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5.8 CO-PCA 221 Standard Hierarchy P
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SAP ERP Financials and FICO Handbook

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