Phase 2: IS-U Basic Settings & FI-CA Integration

Prerequisite Check: Phase 1 must be complete. We require: Company Code AEP1, Chart of Accounts CAOH, Controlling Area AEP1, and FI Document Number Ranges/Types. Without these, the IS-U layer has no financial foundation to post against.

Step 2.1 — Set Up Company Code for FI-CA

This step activates the FI Company Code (AEP1) for the FI-CA subledger. Without this, FI-CA will refuse to post any billing or payment documents for this company code.

SAP Screen Flow

1. SPRO → SAP Reference IMG → navigate to path above → Execute (⏩).
2. Click New Entries.
3. Enter Company Code = AEP1.

Fields to Set / Verify

All other fields on this screen: keep at default. Features like Cash Flow Analysis, Escheatment, Payment by Link, and Dispute Management can be activated in later phases as needed.

4. Click Save (Ctrl+S) → confirm transport request.

Step 2.2 — Define Contract Account Number Ranges

SAP Screen Flow

Screen 1 — Number Range Maintenance: Initial Screen

Navigate to the SPRO path above → click Execute (⏩). SAP prompts:

1. Press Enter.

Screen 2 — Number Range Maintenance: Contract Accounts

SAP shows existing number ranges (empty for new system).

2. Click Change Intervals (pencil icon 📝).

Screen 3 — Maintain Intervals

3. Click Insert Interval (➕) and enter:

Range 01 — Residential Contract Accounts

4. Click Insert Interval (➕) again:

Range 02 — Commercial Contract Accounts

5. Click Insert Interval (➕) again:

Range 03 — Industrial Contract Accounts

6. Click Save (💾).

Step 2.3 — Define Contract Account Categories

What this step does: After defining the number ranges in Step 2.2, you must create Contract Account Categories (e.g., Residential, Commercial) and assign those number ranges to them. When creating a Contract Account, the category determines which number range is used.

SAP Screen Flow

Screen 1 — IMG Navigation

1. Navigate to the SPRO path above → click Execute (⏩).

Screen 2 — Contract Account Categories: Table View

2. Click New Entries.

Screen 3 — New Entries: Detail View

3. Click Save (Ctrl+S).

Step 2.4 — Define FI-CA Document Number Ranges

⚠️ Prerequisite: These FI-CA number ranges must be created before FI-CA document types can be defined in table V_TFK003. The document types reference these ranges.

SAP Screen Flow

Screen 1 — Number Range Maintenance: FI-CA Documents

Note: FI-CA document number ranges (Object FKK_BELEG) are maintained at the Client level, unlike FI-GL ranges which are Company Code dependent. When you execute FPN1, it bypasses any Application Area or Company Code prompts.

1. Click Change Intervals (pencil icon 📝).

Screen 2 — Maintain Intervals

2. Click Insert Interval (➕) for each range:

3. Click Save (💾).

Step 2.5 — Define Business Partner Number Ranges

SAP Screen Flow

Screen 1 — Customizing: BP Number Ranges

When you execute BUCF, SAP opens the number range maintenance for Business Partners.

1. Click Change Intervals (pencil icon 📝).

Screen 2 — Maintain Intervals

2. Click Insert Interval (➕):

3. Click Save (💾).

Note: The BP Grouping name BP01 is defined separately in SPRO → Cross-Application Components → SAP Business Partner → Business Partner → Basic Settings → Number Ranges and Groupings → Define Groupings and Assign Number Ranges. In that screen, you create a grouping called BP01 and assign it to number range 01.

Why These Number Ranges (Steps 2.2–2.5)

Every master data record and every transactional document in IS-U requires a unique identifier from a pre-defined pool. If these ranges are not defined, the system will throw error FO 112 (“No number range found”) on every attempt to create a Contract Account, Business Partner, or post a billing document.

Key Configuration Notes

• Internal numbering is used for all ranges — the system auto-assigns sequential numbers. External numbering (user-defined) is avoided to prevent duplicate key errors in mass-processing scenarios.
• The Contract Account ranges are segmented by customer class (Residential, Commercial, Industrial) for reporting and regulatory filing purposes — PUCO requires separate statistical reporting by rate class.

Step 2.6 — Define FI-CA Document Types

Subledger Context: These document types live exclusively in the FI-CA subledger — they are not visible in FI-GL (OBA7). When the IS-U billing engine produces an invoice, or a customer pays on the B2C portal, these are the document types stamped on the FI-CA posting. See Phase 1, Step 1.8 for the architectural overview.

SAP Screen Flow

Screen 1 — Navigate via IMG or SM30

Option A (IMG): Navigate to the SPRO path above → click Execute (⏩).

Option B (SM30): Execute SM30 → Enter Table/View = V_TFK003 → Click Maintain.

Screen 2 — Determine Work Area: Entry

SAP prompts for the specific area before displaying the document types table.

1. Press Enter.

Screen 3 — Maintain Document Types: Overview

SAP displays existing FI-CA document types for Application Area R. The top header displays ApplicationArea [R].

2. Click New Entries.

Screen 4 — New Entries: Overview of Created Entries

For each new document type, enter the following directly into the table rows (matching the columns on screen):

3. Click Save (Ctrl+S).

Why This Step

FI-CA Document Types classify every subledger transaction. They drive:

• Which G/L accounts receive the posting (through account determination) when transferred to the General Ledger
• Whether the document triggers a follow-on process (e.g., a ZD dunning document triggers the disconnect workflow)
• Reporting segmentation in FI-CA standard reports (FPL9, FP04)
• The Z prefix follows SAP’s customer namespace convention (Y/Z range) for custom-defined objects

Key Configuration Notes

• ⚠️ These document types are maintained in table V_TFK003, not in the standard FI document type table (T003). They are completely isolated from the FI-GL document types.
• The number ranges referenced here (02–06) are the FI-CA number ranges from FPN1, not the FI-GL number ranges from FBN1.

Step 2.7 — Define Tolerance Groups for FI-CA

⚠️ FI-CA vs. FI-GL Distinction: FI-CA uses its own tolerance groups to restrict manual postings and handle clearing differences. These are maintained under the Postings and Documents node and are completely separate from standard FI-GL employee tolerance groups (OBA4). Do not confuse the two.

SAP Screen Flow

Screen 1 — Navigate via IMG

1. Navigate to the SPRO path above → click Execute (⏩).

Screen 2 — Change View “Tolerance Groups”: Overview

2. Click New Entries.

Screen 3 — New Entry: Details of Added Entries

🛑 CRITICAL: Numeric Template Format Rule If you receive the error “The entry must comply with the template format”:

1. Do not copy-paste the values from this document. Copying often grabs hidden trailing spaces which break SAP GUI numeric templates. Backspace the entire field to clear it.
2. Type the number entirely manually.
3. Some SAP systems restrict this specific field length. If 999999.99 fails, try a smaller number like 99999.00 or 9999.00.
4. Dependent on your SU3 settings, you may need to use a comma for the decimal (e.g., 99999,00).

Create the default (blank) tolerance group first:

3. Click Save (Ctrl+S).
4. Repeat New Entries for additional groups:

Note: User-to-Tolerance-Group assignment is done in SPRO → Financial Accounting → Contract Accounts Receivable and Payable → Basic Functions → Postings and Documents → Assign Tolerance Groups to Users. In that screen, you map each SAP user ID to a tolerance group.

Why This Step

Tolerance Groups set upper limits on the dollar amounts that users (or batch processes) can post in a single document. For IS-U:

• The billing engine runs unattended — the default tolerance must be high enough to accommodate the largest industrial customer invoice without failing.
• CSR adjustments (credit memos, manual charges) should be capped at $10,000 per line item to prevent accidental mis-postings.

Step 2.8 — Define Division & Assign to Company Code

The EK01/EK02 account determination key includes the Division field. If Division 01 is not assigned to Company Code AEP1 in IS-U table TE001, you will receive the error: “Record AEP1 01 not found in table TE001”.

Part A: Define Division

1. Navigate to the SPRO path above → click Execute (⏩) → double-click Define Division.
2. Click New Entries.

3. Click Save (Ctrl+S).

Part B: Assign Division to Company Code (IS-U Specific)

4. Navigate to the path above or maintain view V_TE001 via SM30. Click New Entries.

5. Click Save (Ctrl+S).

Step 2.9 — Define Account Determination IDs & Assign to Division

Part A: Define Account Determination IDs for Contract Accounts

The EK01/EK02 mapping key includes Acct Det. ID. These IDs must be defined before they can be used in the posting area tables.

1. Navigate to the SPRO path above → click Execute (⏩).
2. Click New Entries.

3. Click Save (Ctrl+S).

Part B: Assign Valid Account Determination IDs to Division (TE097)

Crucial IS-U Prerequisite: The FI-CA Account Determination IDs created above must now be permitted for your specific IS-U Company Code and Division. If skipped, EK01/EK02 will fail with the error: “Record AEP1 [Div] 01 not found in table TE097”.

1. Execute SM30 and enter table TE097 (do NOT use V_TE097), or navigate to the correct SPRO path above.
2. Click New Entries.

⚠️ Note on Division: In your screenshot, you entered Division EL. The documentation uses Division 01. If you created your Division as EL in Step 2.8, you must enter EL in the table above instead of 01, and continue using EL for all EK01/EK02 steps!

3. Click Save (Ctrl+S).

Step 2.10 — Create G/L Accounts for Account Determination

The EK01/EK02 tables reference specific G/L accounts. These must already exist in Chart of Accounts CAOH.

Prerequisites from Phase 1:

• Step 1.1a — G/L Account Groups must be defined (OBD4). Without them: “No account groups are defined in chart of accounts CAOH”.
• Step 1.1b — Retained Earnings Account must be defined (OB53). Without it: “No P&L statement account type is defined in chart of accounts CAOH” — blocks creation of any revenue/expense account.

Accounts to Create:

Note: Account 3900000000 is the Retained Earnings account referenced in Phase 1 Step 1.1b (OB53). It must be created here as a Balance Sheet account so the year-end closing program can carry forward P&L balances.

SAP Screen Flow (repeat for each account):

Screen 1 — FS00 Initial Screen

1. Execute FS00.
2. Enter the G/L Account number (e.g., 1200000000).
3. Enter Company Code = AEP1.
4. Click Create (or press Enter if the account doesn’t exist).

Screen 2 — Tab 1: Type/Description (Chart of Accounts level)

5. Click the Control Data tab.

Screen 3 — Tab 2: Control Data (Company Code level)

6. Click the Create/Bank/Interest tab.

Screen 4 — Tab 3: Create/Bank/Interest (Company Code level)

7. Click Save (Ctrl+S).
8. Confirm the transport request.

⚠️ Important for P&L accounts (4100000000–4300000000): On the Type/Description tab, SAP will show the G/L Acct Type dropdown. Select Primary Costs or Revenue. This simultaneously creates the CO cost element in S/4HANA — no separate KA01 transaction is needed, but you must specify a Cost Element Category (e.g., 11) on the Control Data tab, otherwise SAP will throw an error.

Step 2.11 — Define CO & G/L Account Determination for FI-CA

Part A: Define CO Account Assignment Keys

SAP Screen Flow

1. Navigate to the SPRO path above → click Execute (⏩).
2. Click New Entries.

3. Click Save (Ctrl+S).

Part B: Store CO Account Determination Key (FI-CA Base & IS-U Extension)

🛑 Crucial Architecture Quirk: SAP IS-U is a two-layer architecture. While SAP provides an IS-U specific menu node for this mapped in TE014, the generic FI-CA engine validates against its own base table (TFKCOD) when saving EK02. You MUST map the allocation in both the base FI-CA view and the IS-U view, or EK02 will fail with error >1024.

Step 1: Map the Base FI-CA Allocation (V_TFKCOD)

1. Execute T-Code SM30.
2. Enter Table/View: V_TFKCOD → click Maintain.
3. Click New Entries and enter:

4. Click Save (Ctrl+S).

Step 2: Map the IS-U Extension Allocation (VC_TE014)

1. Navigate to the SPRO path above → click Execute (⏩).
2. SAP opens a View Cluster. Ensure only valid 2-character keys like 01 exist in the top-level overview.
3. In the right pane, locate your key 01.
4. Select the key by clicking the grey square box just to the left of 01 (the row will highlight).
5. With the row highlighted, look at the left pane (Dialog Structure) and double-click the Account assignment allocation folder.
6. A new screen opens on the right. Click New Entries and enter your IS-U specific assignment:

7. Click Save (Ctrl+S).

Part C: Define Main and Sub-Transactions in FI-CA

🛑 FI-CA Layer Prerequisite: Before IS-U Billing can use a transaction combo (like 0010/0010), it must first exist in the base FI-CA settings. If you skip this, SAP throws the error: “Corresponding entry in ‘Configure general settings’ missing” when you try to maintain the IS-U billing tables.

1. Step A: Maintain Main Transactions
   • Navigate to the Main Transactions SPRO path and execute it.
   • Verify or create Main Transaction 0010 (Text: Billing).
   • Save and back out.
2. Step B: Maintain Sub-Transactions
   • Navigate to the Sub-Transactions SPRO path and execute it.
   • Click New Entries and define:

3. Click Save (Ctrl+S).

Part D: Maintain Transactions for IS-U Billing

🛑 IS-U Layer Prerequisite for EK01/EK02: Before you can map a G/L account to a Main/Sub transaction in EK01 or EK02, you must activate the transaction combination for your specific Company Code and Division in the IS-U transaction tables. Without this, SAP rejects the EK02 entry with a “Record not found in TE305” error.

1. Navigate to the exact SPRO path above and click Execute (⏩) on Maintain Transactions for Billing.
2. Click New Entries.
3. Create the combinations you plan to use in EK02:

(Note: Check the Debit/Credit flag as appropriate based on standard TFK001B billing setups. Ensure you use EL for the Division if that is what you created earlier!)

4. Click Save (Ctrl+S).

Part E: Automatic G/L Account Determination — Receivables (EK01)

🛑 Prerequisite: Application Area R must be active If you encounter the error “Posting area R000 is only allowed for appl area R”, the Utilities Application Area has not been activated for this client. Resolution:

1. Navigate to SPRO → Financial Accounting → Contract Accounts Receivable and Payable → Basic Functions → Application Area → Execute (⏩).
2. Set the active Application Area to R (Utilities) → Save (Ctrl+S).
3. Log out and log back in to clear session buffers.

If Application Area R is not available, verify that the IS-U business functions are activated in SFW5 (Switch Framework).

SAP Screen Flow

1. Execute T-Code EK01 to maintain the receivables account assignments (Posting Area R000).
2. Click New Entries and maintain the AR G/L mapping.

🧠 Architectural Design Note You might notice that we map all Account Determination IDs (Residential, Commercial, Industrial) to the identical G/L account 1200000000 for Receivables (EK01), while we split them out into separate 41XXXXX accounts for Revenue (EK02).

This is a best practice in FI-CA subledger design:

1. Balance Sheet (AR): The General Ledger only needs a single high-level aggregated “Trade Receivables” balance. Detailed AR aging, customer-level balances, and class breakdowns are handled exclusively by the FI-CA subledger reports (like FP04).
2. P&L (Revenue): The General Ledger does require discrete tracking of Revenue by customer class for high-level P&L executive reporting. That’s why EK02 gets separate G/L accounts!

3. Click Save (Ctrl+S).

Part F: Automatic G/L Account Determination — Revenue (EK02)

SAP Screen Flow

1. Execute T-Code EK02 to maintain the revenue account assignments (Posting Area R001).
2. Click New Entries and maintain the revenue G/L mapping.

3. Click Save (Ctrl+S).

Why This Step

Account Determination is the mapping engine between IS-U billing line items, the General Ledger, and Controlling.

• Dependency from Previous Instructions: The G/L accounts (Step 2.10), the Division and its Company Code assignment (Step 2.8), the Account Determination IDs (Step 2.9), and the FI-CA Main/Sub Transactions (Part C) must all exist before EK01/EK02 can accept entries. The CO Account Keys from Parts A/B provide the Controlling side of the posting.
• G/L Mapping: When a billing document posts, the system checks Company Code + Division + Acct Det. ID + Main/Sub Transaction to determine the correct AR (R000) and Revenue (R001) G/L accounts.
• Dependency for Next Instructions: These mappings are a strict prerequisite for Step 2.12 (Configure G/L Transfer). The Reconciliation Key process will fail to transfer FI-CA subledger totals to the General Ledger if the underlying account determination is missing.

Key Configuration Notes

• ⚠️ CO Account Assignment Columns in EK02: There are TWO visually similar CO columns in the EK02 grid:
  1. CO acct assg... (checkbox): Do NOT check this. Checking this forces SAP to derive the CO key from contract master data instead of this configuration table.
  2. CO Acct Assignment (far right column): Enter your 2-character key 01 here. Entering an ‘X’ instead of the key, or leaving the Division field blank (which causes SAP to search for a blank-division mapping), will trigger the error: “The system was unable to locate CO data for CO account assignment key 01”.
• The Reconciliation Key that aggregates FI-CA postings depends on these Main/Sub Transaction assignments.

Step 2.12 — Configure G/L Transfer & Reconciliation Keys

Reconciliation Keys are operational objects — they are created on-the-fly during FI-CA posting or manually via T-Code FPE1. They are NOT customizing entries defined in SPRO. This step covers the SPRO settings that govern the G/L transfer process and the operational creation of initial keys.

Part A: Configure G/L Transfer Settings (SPRO)

Screen 1 — IMG Navigation

1. Navigate to the correct Integration SPRO path above → click Execute (⏩).
2. Configure the posting specifications for G/L transfer:

(Note: If you need to define a Summarization Variant to compress the FI-GL document lines, it is done under the adjacent node Define Summarization Variants for General Ledger Transfer)

3. Click Save (Ctrl+S).

Part B: Create Initial Reconciliation Keys (FPF1)

⚠️ This is an operational step, not IMG customizing. Keys can also be auto-created during FI-CA posting transactions.

SAP Screen Flow

Screen 1 — Reconciliation Key: Initial Screen

When you execute FPF1, there is no explicit “Create” button. The system operates on direct entry.

1. Execute FPF1.
2. In the Reconciliation Key field, type your desired key name (e.g., 0001).
3. Press Enter. (Because the key does not exist, SAP automatically transitions into “Create” mode).

Screen 2 — Reconciliation Key: Detail Screen

4. In the detail screen, enter the description and save. Repeat for each transfer grouping:

(Note: There is no “Transfer Frequency” field on this screen; frequency is handled operationally by scheduling the FPG1 batch job daily or monthly).

5. Click Save (Ctrl+S) for each key.

Part C: Execute G/L Transfer (FPG1) — Operational Example

⚠️ DO NOT execute this now. This is an operational, runtime transaction that requires actual FI-CA postings to exist, and the Reconciliation Key must be closed (via FPF2) before it can be transferred. Documenting here for completeness.

When executing FPG1 in a live environment, you fill the following fields:

• Once filled, click Execute (⏩). SAP will compress the DFKKSUM totals and automatically generate an FI-GL document (Type ZC) containing the balances.

Step 2.13 — Define Dunning Area & Levels

SAP Screen Flow

Part A: Define Dunning Area

Screen 1 — IMG Navigation

1. Navigate to the SPRO path above → click Execute (⏩).

Screen 2 — Dunning Areas: Table View

2. Click New Entries.

Screen 3 — New Entry: Dunning Area Details

3. Click Save (Ctrl+S).

Part B: Configure Dunning Levels

SPRO Path: SPRO → Financial Accounting → Contract Accounts Receivable and Payable → Business Transactions → Dunning → Dunning Procedure → Define Dunning Procedures

Screen 4 — Dunning Procedures: Table View

4. Click New Entries → define a dunning procedure.

5. Double-click on the procedure to configure levels.

Screen 5 — Dunning Levels

For each level, enter:

6. Click Save (Ctrl+S).

Why This Step

Dunning is the revenue protection backbone of a utility. Ohio regulations (PUCO Rule 4901:1-18) mandate specific notice periods before service disconnection. The dunning levels must mirror these regulatory requirements. Without a Dunning Area assigned to the Company Code, the FPDN dunning batch run will fail.

Step 2.14 — Define Payment Methods

SAP Screen Flow

Screen 1 — IMG Navigation

1. Navigate to the SPRO path above → click Execute (⏩).

Screen 2 — Payment Methods: Table View

SAP displays a table with columns: Country | Payment Method | Description.

2. Click New Entries.

Screen 3 — New Entry: Payment Method Details

For each payment method, fill in:

3. Click Save (Ctrl+S).
4. Repeat New Entries for each payment method:

Complete Payment Methods

Why This Step

Payment methods must be pre-defined before customers can be set up with payment preferences on their Contract Account. This is directly relevant to IS-U because Payment Method Determination during the billing run stamps each open item with the appropriate settlement path.

Phase 2 — Completion Checklist

🔗 FI-CA integration is now complete. Proceed to Phase 3: Regional & Technical Master Data Foundation.