Activate FI Validations – OB28 or GGB4

FICO Configuration Series – Part 11

Activate Validations

Financial Accounting >> Financial Accounting Global Settings >> Document >> Line Item >> Define Validations for Posting

Transaction Code: OB28 or GGB4

OB28 takes you specifically to the FI validation application area. Using GGB4, you can manage the activation of all validations in the system for any application area or callup point.

CC: Four digit character identifier company code you want to activate your validation with. Only one validation can be active per company code per callup point. You can add additional steps to your validation in order to carry out more validations.

CallPnt: Enter the callup point you want your validation to be executed with.

Validation: Enter the identifier of the validation that you want to activate

Activtn Level: Enter the activation level for validation. Valid values are 0 (not active), 1 (activated throughout the system) and 2 (activated except for batch input)

Define FI Validations – GGB0

FICO Configuration Series – Part 10

Define Validations

Financial Accounting >> Special Purpose Ledger >> Tools >> Maintain Validation/Substitution/Rules >> Maintain Validation

Transaction code: GGB0

Validations are used to check settings and return a message if the prerequisite condition is met. You can use validations to supplement existing SAP logic to fit your business needs. A validation is valuable tool that can be used in many of the financial and controlling modules. In this section, we will configure an FI validation to fulfill our requirement of allowing postings from one particular company code to be posted only one particular business area.

In the screen follow the menu path (Validation >> Create) and enter the Name of validation, application area and callup point. The available options are as follows:




Asset Management




Financial Accounting


Special purpose ledger


Joint Venture Accounting


Enterprise Controlling (only Substitutions)


Legal Consolidation


Management Consolidation


Project System


Callup points determine when the validation is run. The callup points that are available are dependent upon the application area that is selected. For the FI application area, the following callup points are available:

Callup Point



Document Header: entries are stored in BKPF table


Line Item: Entries are stored in BSEG table


Complete Document


In the next screen, enter the description of the validation and then click the insert entry button to add a step to the validation. Enter the prerequisite and checks using Boolean logic. The message is also typed in/selected after defining them as Error(E), Warning(W), Cancel(A) or Information(I). After all the details have been typed in, click the check syntax icon. Saving the validation generates ABAP code to perform the validation.

Business Areas – OX03

FICO Configuration Series – Part 9

Define Business Areas (click here for short version with screenshots)

Enterprise Structure >> Maintain Structure >> Financial Accounting >> Maintain Business Area

Transaction code: OX03

The function of a business area is to create balance sheets and profit and loss statements below the company code level. Some common uses of business are to produce divisional financial statements or SEC segment-level reporting. It is important to note that business area functionality can be duplicated using profit center accounting. The decision to use or not to use business areas should be made early on in the design phase of your project. Many new projects are leaning away from business areas and towards profit centers, but ultimately, the decision is an individual project decision based on what fits in the overall system design of the project implementation. Some of the deciding factors are the need to report business lines across company codes, the need for full balance sheets at the divisional or business line level, as well as the cost and the benefits of business areas versus profit centers.

Business areas are independent of any other FI enterprise structure. Therefore, business areas are designed to cut across company codes. A common mistake that some companies make is to force one-to-one relationship defeats the entire purpose of business areas. The purpose of business areas is to be able to report on similar activities that occur across company codes. There is no residual benefit to configuring business areas in that manner. As a matter of fact, it often causes a lot of reconciliation problems because business areas are not linked to company codes in standard configuration.

In this screen enter Alphanumeric identifier for the business (up to 4 char) are and description

Saks Apparel has decided to use three business areas. The CFO has determined that he would like a cross-company balance sheet for both the apparel and textile industries in which Saks Apparel conducts business activity. In order to better track non-value-added administrative assets and expenses, the services business area was created. The new shared services department that provides centralized administration functions for the organization is being implemented as part of the business process reengineering effort portion of the SAP project implementation. It is important to remember that the idea is for all company codes to share all the business process reengineering effort portion of the SAP project implementation. It is important to remember that the idea is for all company codes to share all the business areas. The one exception is that the accounting department wants to ensure that postings one particular company code are only posted to one particular business area.

Although Business Areas are not linked to any other FI Enterprise Structures, they can be linked to other organizational elements in the system. Some of them are listed below:

Enterprise Structure

Why is this linked to the Business Area?

Plant/Valuation Area & Division

Very useful to link Business area to plant/valuation area and division because single plants usually produce products for one Business Area

Plant & Division

Similar to previous. The decision whether to link or not is taken by the MM team

Sales Area

In sales organizations which sell a single grouping of products, business areas are linked to sales areas to ensure revenue postings are made to correct business area

Cost Centers

Sometimes, it makes sense to map business areas to cost center


In the company code, if the Business Area Balance Sheet indicator is enabled, business area becomes a required field fixed asset class module

Consolidation Business Areas

Consolidate business areas for reporting purpose

Define Parallel Currencies – OB22

FICO Configuration Series – Part 8

Define Parallel Currencies

Financial Accounting >> Financial Accounting Global Settings >> Company Code>> Parallel Currencies >> Define additional local currencies

Transaction Code: OB22

Company Code: Enter the four-digit identifier of the company code that you wish to configure.


1st Local Currency: These fields will fill in automatically with default information based on the currency defined in the company code definition.


2nd and 3rd Local Currency: As explained earlier, each company code can have two additional parallel currencies that can be used in conjunction with local currency defined for the company code


Curr. type: The currency type field specifies which type of parallel currency you want to configure. The following options are available.


Group Currency: Group currencies are defined at the client level in table T000. Group currencies are used to enable cross-company postings in controlling for company codes that use different company code currencies.


Hard Currency: Hard currencies are used for subsidiaries in countries with a lot of inflation. Hard currencies allow you to better valuate transactions in an inflationary economic environment.


Index-Based Currency: Index-based currencies are used for statutory reporting purposes for subsidiaries in some countries that have extreme amount of inflation.


Ex. Rt. Type: The exchange rate type determines how foreign currencies are revalued at the time of foreign currency revaluation and translation. The number of possible entries is too numerous to list here J


Srce Curr: Enter the source currency that the foreign currency is to be translated against. The possible entries are as follows:


Translation taking transaction currency as basis: This option always tries to translate the parallel current against the transaction currency of the document.


Translation Taking First Local Currency as Basis: This option always translates the parallel currency against the first local currency (company code currency).


TrsDte Typ: This setting is used to determine which date is used for foreign currency translations. The available options are as follows:


1. Document Date: Select this option if you want the translation calculation to use the exchange rate that was In effect on the day the document was dated.

2. Posting Date: Select this option if you want the translation calculation to use the exchange rate that was in effect on the posting date in the document.

3. Translation Date: Select this option if you want the translation calculation to use the exchange rate that is in effect on the date of the foreign currency translation.

Saks Apparel has decided to use a hard currency to help offset the inflationary pressures of its Mexican based company code. US dollars are used as hard currency. The peso is the company code currency for the Mexican division. Saks Apparel has decided to use the transaction currency as the base currency for translation and to use translation date to determine proper exchange rate. Because we have company codes with different currencies using the same controlling area, we also configured a group currency of US dollars for all company codes. The group currency will allow us to make cross company code postings in the controlling module. We will also need to make entries for all of the US company codes to add the group currencies to their records.


Define Countries – OY01

FICO Configuration Series – Part 7

Define Countries

Global Settings >> Set Countries >> Define Countries

Transaction Code: OY01

In the first screen, you need to select the country (MX) – the next screen that pops up will require the following details:

Hard Currency: Enter the key of you want to set as hard currency for the country. Hard currencies are used in countries with high inflation to improve the value of the transactions. When a hard currency is selected, the document is automatically updated in the local currency and the hard currency.

Index-Based Currency: Index currencies are used for statutory purposes in some countries with very high inflation. The way index currency valuation reporting works depends on the rules of each specific country. Enter the key of the currency that you want to set as index currency, if applicable, for your country.

Date Format:
Enter Date preference. Also keep in mind whether Europeans may use the same database at some future time.

Decimal Format:
Decimals using periods or commas. Also keep in mind whether Europeans may use the same database at some future time.

Although hard currency has been configured at country level, to activate this feature, hard currency needs to be configured at the company code level be defining parallel currencies.

Company Code Global Parameters – OBY6

FICO Configuration Series – Part 6

Company Code Global Parameters

Here is where we link the company code to the chart of accounts, fiscal year variant and posting period variant among other settings.

Financial Accounting >> Financial Accounting Global Settings >> Company Code >> Enter Global Parameters

Transaction Code: OBY6


Company: Company consists of one or more company codes. Used generally in legal consolidation module to roll up financial statements of several company codes. Use a 6 character alphanumeric identifier that relates to this company.

FM Area/Financial Management Area: They are used in treasury module, specifically for funds management. Funds Management allows the organization to budget commitment and financial resources. If you are using Funds Management, enter the four character identifier of FM Area. If you are using Investment Management along with Funds Management, the FM areas must be assigned to controlling areas assigned to your company codes. FM areas can contain more than one company code.

Credit Control Area: Credit Control Area controls the credit limits for the organization’s customers. A Credit Control Area can be assigned to many company codes, but a company code can linked to only one credit control area.

Ext.Co. Code: If you are using ALE, Check this field.

X-System Co. Code: If Ext. Co. Code is checked (i.e. if ALE is used), the corresponding external company code ID is entered here. For Example, Company Code of 1001 might have been linked to Company Code ID of EXCC01 that relates to Company Code 1001 in the other ALE system.

Company Code is Productive: (This setting is done only in production client). Once the company code is set to productive, it becomes impossible to delete transactional data from the SAP system.

VAT Registration Number: If company is subject to EU regulations, enter VAT registration number here.

Business Area balance Sheet: Set this indicator if Business Areas are used for the organization.

Document Entry Screen Variant: This setting controls country-specific on- screen gelds for accounting documents. The most common U.S. setting is 21 this setting is for countries with withholding tax, like the U.S.

Assign the company code to the chart of Accounts (SACA), fiscal year variant (SA) and posting period variant (US01). Currently legal consolidation funds management and fixed assets are beyond our scope. Saks Apparel has used document entry screen variant 2 because company code 1000 is a US-based company that utilizes withholding taxes. The CFO has determined that a 10% exchange rate deviation is acceptable. The standard field status variant 0001

Company Code Configuration – OX02

FICO Configuration Series – Part 5

Company Code

Company code is representative of a stand-alone legal entity that requires its own set of accounting records for reporting purposes. For detailed description of company codes with examples click here. For SPRO path for Company codes, Click here.

Enterprise Structure >> Maintain Structure >> definition >> Financial Accounting >> Define, Copy, delete, Check Company Code

Transaction Code: OX02

Enter the Company code details such as description, country and address details. All Address details are stored in table SADR. SAP recommends that all the address details are not transported – rather they are to be maintained by hand in the production client.

Company Code: Enter the four-digit alphanumeric identifier (normally number from 1000 upwards are used)

For Saks Apparel, the company has decided to all numeric company codes. In the contents post we assumed 4 legal entities – Saks Woolen Inc, Saks knitwear, Saks Textile and Saks International. Saks International is based on Mexico. All 3 others are based in USA.

Next: Define Company Code Global Parameters

Posting Period Variant – OBBO

FICO Configuration Series – Part 4

Posting Period Variant

This controls which posting periods (normal and special) are applicable for each company code. It is possible to have a different posting period variant for each company code. The posting period variant is independent of the fiscal year variant.

Financial Accounting >> Financial Accounting Global Settings >> Document >> Posting Period >> Define variants for open posting periods

Transaction Code: OBBO

Assignment: With the implementation of SAP, Saks Apparel has decided to streamline its back office functions. Before SAP implementation, each company within Saks Apparel operated its own accounting department independently. Using SAP, there will be only two accounting departments: one for the US based companies and the one for the Mexican based company. Because of this change only two posting period variants, US01 and MX01, are needed. All US based companies will be closed at the same time. The Mexican based company (and any additional future Mexican based companies) will be closed at the same time (different from the time US companies are closed).

Fiscal year Variant – OB29

FICO Configuration Series – Part 3

Fiscal year variant

The fiscal year variant determines the posting periods to be used by the client’s company. SAP allows a maximum of 16 posting periods each fiscal year – normally 12 regular posting periods and 4 special posting periods are used. The special posting periods are used for posting audit or tax adjustments to a closed fiscal year.

Financial Accounting >> Financial Accounting Global settings >> Fiscal Year >> maintain Fiscal year variant (maintain shortened fiscal year)

Transaction Code: OB29

You can copy existing values or create ones from scratch.

Financial Year Variant: Enter the two-digit alphanumeric identifier of your fiscal year variant. Avoid using K or V as the first character as SAP delivered financial year variants use them.

Calendar Year: Set this indicator if the fiscal year is also the calendar year.

Year-Dependent: Set indicator if fiscal year is changing from year to year.

Number of Posting Periods: Enter the Number of normal posting periods (maximum is 12) [correction based on comment – can be more than 12, thanks to Singh]

Number of Special Periods: Enter the Number of special posting periods

Annual Displacement: Enter values as -1, 0 or +1. For years which have the fiscal year same as the calendar year, always use 0. For -1 and +1 are used to offset whenever calendar year is different from the fiscal year.

Assignment: Saks Apparel operates on an April-March calendar month fiscal year. (So, copy any existing year variant that uses April-March year). Create a Financial year variant SA. We also setup 12 regular posting periods and 4 special posting periods.

Some more details on fiscal year variants configuration