Fiscal year variants in SAP

A financial year is termed as a fiscal year. A fiscal year may or may not be the calendar year depending on the country. Fiscal year variants defined in SAP are:

  • V3 – April to March
  • K4 – January to December
  • V6 – July to June
  • V9 – October to September
any new calendar can also be created, remember to use Z as the first byte of the fiscal year variant.

Business Area – OX03

Business area is an org. unit in which the company codes‘ operations take place.
Business area is NOT assigned to any company code but the business area is given while posting to a company code manually.
SPRO > Enterprise Structure > Definition > Financial Accounting > Define Business Area
For more details on business area, click on the link

Define Enterprise Structure – Steps

Note: BA1, BA2 etc in the picture are business areas. FA1, FA2, etc in the picture are functional areas.
Configuration links – screenshots and Transaction codes are mentioned above, please click on them or open them in a new window.

Assignment of Company Code to Company – OX16

SPRO > Enterprise Structure > Assignment > Financial Accounting > Assign Company Code to Company


In this step, multiple company codes are assigned to the company.

Company codes: company = N: 1


  1. Click position
  2. Enter company code
  3. Enter Company
  4. Save

Create Company Code – OX02

Company code is the central organizational unit used for financial accounting purposes. This is the most important organizational unit in SAP (without which FI cannot be implemented). Every legal entity is created as a company code in SAP. This is the central organizational unit to which all other organizational units of other modules will be assigned.

Examples of dependency to other modules

  • Plants of MM Module assigned to company code
  • Sales organization of SD is assigned to company code
  • Personnel area of HR is assigned to company code
All financial postings in SAP are done with reference to the company code.
SPRO > Enterprise Structure > Definition > Financial Accounting > Define, Copy, Delete, Check Company Code
The smallest organizational unit for which a complete self-contained set of accounts can be drawn up for the purposes of external reporting. The process of external reporting involves recording all relevant transactions and generating all supporting required for financial statements (balance sheets, profit and loss statements and so on.)

Define a Company

Company: Smallest organizational unit for which individual financial statements can be drawn up according to the relevant commercial law. A company can consist of one or more company codes.

A company is generally used in the legal consolidation module to roll up financial statements of several Company-Codes. A company can consist of one or more Company-Codes. It is important to make the distinction that a Company is NOT the same as a Company-Code.

Company code links – What is a company code? Company code Configuration

Menu Path:

SAP Reference IMG -> Enterprise Structure -> Definition -> Financial Accounting -> Define Company

Click on “New entries”

Enter the details for the fields listed below:
Company (Enter a six-character alphanumeric identifier)
Company Name
Name of your Organization
Street Street Address
Postal Code / ZIP
Country US
Language Key EN
Currency USD

Click on SAVE

A notification screen pops up showing that your request was carried out. Click on “Enter” to continue on the pop up screen showing compliance of request

At the bottom of the screen in the “Status Bar” another message is given showing that the Data was saved.


These are the steps in GL configuration.

1. Creating company code

2. Create chart of accounts

3. Assign company code to chart of accounts

4. Define Account group

5. Define retained earnings Account

6. Maintain Fiscal year variant

7. Assign company code to a Fiscal year variant

8. Define Posting Period variant

9. Define variants for open periods posting

10. Assign Posting period variant to company Code

11. Create document number ranges for company code

12. Define document type and assign document number range

13. Enable Fiscal year default

14. Enable default value date

15. Maintain field status variants

16. Assign company code to field status variants

17. Screen variants for document entry

SAP Internal Order Configuration – Screenshots

The Steps for Internal Order configuration are:

  1. Organizational Structure
    1. Activate Order Management in Controlling area
  2. Order Master Data
    1. Define Order Types (KOT2_OPA)
    2. Maintain Number Ranges for Orders (KONK)
    3. Define Model Orders
  3. Planning
    1. Maintain User-Defined Planner Profiles
    2. Maintain Planner Profile for Overall Planning (OKOS)
  4. Settlement
    1. Maintain Allocation structure
    2. Maintain Settlement Profile
    3. Maintain Number Ranges for Settlement Documents

Internal Order – Introduction

Let’s say in an organization there are various events such as trade fairs, training seminars, which occur during the year. Now let’s assume for a second that these Trade fairs are organized by the Marketing cost center of the organization. Therefore in this case marketing cost center is responsible for all the trade fairs costs. All these trade fairs costs are posted to the marketing cost centers.

Now if the management wants an analysis of the cost incurred for each of the trade fair organized by the marketing cost center how would the marketing manager get this piece of information across to them?

Now this is where Internal Order steps in .If you go through all cost center reports this information is not readily available since all the costs are posted to the cost center.

SAP, therefore provides the facility of using internal orders which comes in real handy in such situations. In the above scenario the controlling department would then need to create an internal order for each of the trade fair organized. The cost incurred for each of the trade fair will be posted to the internal orders during the month. At the month end, these costs which are collected in the internal order will be settled from these orders to the marketing cost center. Thus the controlling person is now in a position to analyze the cost for each of the trade fair separately.

Thus internal order is used to monitor costs for short term events, activities. It helps in providing more information than that is provided on the cost centers. It can be widely used for various purposes . If used intelligently it is a real handy tool. Thus Internal order is basically a cost object which is used to monitor cost of a time restricted job. There are various types of internal order the common ones being a Real order where you collect costs and settle it at the month end. Ther others are statistical orders and we also have capital orders for capital projects