Financial Statement Analysis by using Report Painter

Report painter is an excellent reporting tool that is equipped with useful features which can help us in designing analytical reports quickly without ABAP help.Financial reporting requirement varies as per local accounting practices and GAAPS. In order to cope up with these requirements report painter let us design reports like

1. Profit & Loss Accounts
2. Balance Sheet
3. Cash Flow Statements
4. Ratio Analysis
5. Sources & Application of Working Capital
6. Consolidated Financial statements

In order to make the user familiar with this reporting tool i would restrict this blog to Ratio Analysis. While designing ratio analysis for ratios based on profit and loss figures and balance sheet , one thing has to kept in mind that profit and loss figures are period based and balance sheet figures are taken on To Date basis. Hence we need to handle this behavior while designing ratio analysis report in report painter. I will use start with designing the form and the setting necessary parameters for a classified report output.

Tax Number Duplicity Restriction (CNPJ, CPF, State Inscription)

Since the companies in Brazil must not have 2 partners to the same CNPJ and/or State Inscription (IE), or CPF, you can prevent that 2 customer master records or 2 vendors created to the same Tax ID using SAP Standard (Configuration). Some time ago, this was only possible with coding / user exit.

First, let me explain about the TAX IDs in Brazil:

-Tax Number 1 (STCD1) – CNPJ -- Only for legal entities (companies)

-Tax Number 2 (STCD2) – CPF -- Only for Natural Person

-Tax Number 3 (STCD3) – State Inscription -- Only for legal entities (companies)
If exempt, must contain word “ISENTO”

-Tax Number 4 (STCD4) – Municipal Inscription -- It can contain RG (ID) if vendor is Natural Person
If exempt, must contain word “ISENTO”

 -Sole Proprietr (STKZN) – Natural Person indicator -- Must be active when vendor is not a legal entity but a Natural Person

Revaluate Activity Type at Actual Price

I just want to share if anyone may need. It is complete scenario from configuration to planning, actual posting and final revaluation. I used some of the comments/posts on the forum - That I see it valuable and clear

1. Master data & set up
1.1  KL01-Create activity type

• Set the ‘Price indicator’ to “1” (Plan price, automatically based on activity) in the ‘Allocation default values’ section in order that the plan prices are calculated automatically. -> This means that the cost center budget entered in transaction KP06 will be divided by the quantity entered in transaction KP26 when you run the plan price calculation in transaction KSPI.
• You need to set the ‘Act. Price indicator’ to “5” (Actual price, automatically based on activity) in the ‘Variance Values for Actual Allocation’ section in order that the actual prices are calculated automatically. This means that the actual costs posted a cost center will be divided by the actual quantity consumed in the cost center when you run the ‘Actual Price Calculation’ in transaction KSII.

GL Planning/Budgeting

Purpose

In this Document we will capture GL Planning/ Budgeting Process, Scenarios and requirement of an Organization.
This component is used to handle GL accounting transactions that you can Prepare Future forecast, Allocation in a Particular Department.
You can use the planning function in General Ledger accounting to enter and distribute plan data to create budgets, forecasts, and other reports.
You can quickly and easily enter large amounts of plan data. You have the following options for plan data entry:

1. You can enter amounts as plan totals that are (automatically or manually) distributed to the planning periods.
2. You can enter amounts as period amounts that are automatically totaled.
3. You can enter a combination of both totals and period amounts.

SAP Inventory Valuation through FIFO

The below article will explain one of the approaches through which Inventory can be valued on FIFO basis in SAP -

We have two approaches to present our Inventory on FIFO basis -
1. Batch Input Method - A batch capturing the Receipt Value and the Quantity for every GR is maintained in the system. At the time of Goods Issue, the system will fetch the value from the batches in the ascending order.
2. Balance Sheet Valuation Method - In this approach, the goods are valued at the Moving Average Price throughout the period and at the Period-end date, an adjustment entry is posted to bring the inventory at the FIFO method.

I will discuss the configuration steps of Balance Sheet Valuation Method here.
Before beginning with the configuration of this approach, let me explain with an example for what exactly this approach will do -

Module pool for CO Month End Process

This document is explaining the process of creating a module pool for the SAP CO Month End Process. The objective is to provide a simplified screen to the end user to complete the month end process. Normally this process will be done by an ABPER, but it can be done by a functional consultant with a little bit knowledge on coding which is very simple.

Note: The document is appears to be lengthy because of adding detailed screens for every step.

I have provided the detailed steps to complete the process. Before going into the details, end result of the screen to be developed is as follows:

Error FS 861 in External Tax System

The purpose of this blog is help to identify the root cause of error FS 861 in External Tax System (SABRIX, VERTEX and TAXWARE).

Error FS 861 can be a generic error resulted from RFC_CALCULATE_TAXES_DOC when external tax calculation is used. The cause can be wrong jurisdiction code, jurisdiction code structure, country not supported and so on.

The steps bellow should be followed to identify the root cause of error FS 861.

1. Check if company code is US,CA,PR:

According with SAP Note 1738657, SAP supports external tax systems only for the country codes US, CA and PR (Puerto Rico). This means the country of the company code must be one of these countries so that taxes are calculated using the external tax system and are also updated there.