What is SAP FI Document Control configuration

In this blog, you will be looking at the purpose of Document Control and the application of important Document types in SAP S4HANA. What are Posting Keys, and what is the importance of different Posting Keys?

Document Control

Hundreds of documents are created by companies as a result of transactions arising from business operations. To be able to manage documents storage in the SAP system, it is important that documents posted in the system are categorized and stored sequentially for easy of retrieval. Once a transaction is posted, then the system generates a document, assigns a document number to the document, and saves the generated document in the system.

Every posting in the SAP system generates a document and the document remains open in the system until the document is cleared and archived. For example, when a transaction is posted in the system, the system generates a document and assigns it a number, and it remains open in the system until cleared.

As mentioned earlier, hundreds of transactions are posted in SAP S4 HANA. Identifying a single transaction in an environment where you have hundreds of transactions stored in the same system can be very daunting. To eliminate this problem, SAP uses a document-control technique that allows the system to structure documents storage in the system in a systematic way using document numbering, company code, and fiscal year.

The document number assigned to a document is obtained from the number range you will define in an activity later for your company code and your company’s code fiscal year. Hence when defining document number range the following items are important:

• Document number: This is a unique number that is assigned to a document by the system automatically from the number range you have defined in the system. We will be looking at how to define number range in this chapter.
• Company code: This is your company’s identification code. We looked at how to define company code in chapter 1.
• Fiscal year: This is your company’s accounting year. Normally, the accounting year is a 12-month period.

When entering a document in SAP S4HANA, the user must specify a document type and a posting key. Every document in SAP is controlled by two items:

• Document types.
• Posting key.

Document types – Document types are defined at the client level. This makes document types available to all company codes within the client. Document types are used to control different business transactions in SAP R/3.

Document types controls the following items:

• The appropriate account type to be posted,
• Document header fields, and
• The number ranges for document numbers.

Context:

1. Document Type

2. Document Number Range

3. Posting Key

4. User Tolerance Group 

Path to configure the above settings in SAP >> IMG Screen:  

Document Type

A document type is identified by two-character values and plays a very significant role in SAP S4 HANA. The purpose of document types is specifically to distinguish between different business transactions and the accounts the system will post a transaction to in the system for ease of identification and classification, such as Vendor invoice, customer invoice, Vendor invoice payment, and so on.We have provided a list of some of the important document types presented by SAP in the system in Table 3-1.

Define New Document Type or Utilize SAP Pre-Delivered Document Types for your Company Code.

How to Define or Create a document type in SAP?

In the company code, we may have a leading ledger and several non-leading ledgers, but a document type example “JV” has the same effect on all the ledgers. Let’s define this new document type:-

IMG => Financial Accounting => Document-Document Types => Define Document Type or Transaction Code => OBA7

On the resulting screen, the following appears:-

Document Type => Enter JV as two character identifier for the document type

The document type controls the following:

• The nature of business transactions and the account types where they are posted. The importance of this is that it is easier to display line items based on the type of business transactions involved.
• Account Types Allowed : Posting to account types when you assign appropriate document types to business transactions. For example, the document type DR will post to a customer account, KR will post to a vendor account, and so on. During document posting, you enter the document types in the document header field. This enables the system to differentiate between accounts where transactions are posted.
• Number Range Assignment : The number ranges for document numbers. The system assigns a number range to a document during posting, using the number range you created. The number range allows the system to store documents in the system based on similar number ranges. Number ranges therefore control document storage in the system.
• Reverse Document Type : Defines which document type is used when reversing a document.

1. KR reversed by document type REExample:
2. SA reversed by AB
3.  Enter the document type to be used for reversal transactions. When this field is left blank, the system uses the original document type for reversal as well. You may leave this field blank. Select all the checkboxes under Account Types Allowed because the document type JV is used in all these cases.

👉 Controls classification of reversal entries separately from originals.

• Negative Postings Permitted : Determines whether negative postings are allowed.

If enabled → System reverses without increasing transaction volume

If disabled → Standard reversal posting required

Used in environments where financial totals must remain clean (no artificial turnover increase).

When you select this, you can reverse the original postings without altering the trial-balance transaction figures. This is possible only when you configure the company code to receive negative postings.

👉 Important for countries with strict statutory requirements.

• Intercompany Transactions Allowed : Controls whether document type can be used for postings involving multiple company codes.
• Required for cross-company postings
• Ensures proper clearing entries between company codes
• Select this to have cross-company account assignments within a single document. This enables account assignment to several partners. We won’t select this for JV

👉 Critical in group accounting environments.

• Exchange Rate Type : Specifies which exchange rate type (e.g., M, B, G) is used for currency conversion.
• Controls foreign currency valuation logic
• Determines which rate table is referenced

👉 Important in multinational environments.

• Header Text / Reference Field Status : Document type can control whether:

• Reference field is mandatory
• Document header text is required
• Fields are optional or suppressed

👉 Ensures documentation quality and audit compliance.

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S4 comes with standard document types, which you can use as your document types. Some of the document types delivered by SAP are listed in Table 3-1. It is also possible to create your own document types, but we advise that you use the document types supplied by SAP, instead of creating your own from the scratch. The reason we recommend that you use the standard document types supplied by SAP is that they meet your requirements.

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Posting Key

Posting Key – Used for line items.

Posting keys are defined at the client level and are available to all company codes within the client.

Importance of posting keys:

• Controls which account is to be post to.
• Controls whether the line item will be posted as a debit or credit.
• Determines field statuses.

SAP S4 HANA comes with predefined posting keys with the following default posting key values.

Figure 3-1. Important Posting keys

We recommend that you use the predefined posting keys supplied by SAP in the system instead of creating your own posting keys, as the supplied posting keys in the system are sufficient for your requirements. To access the screen where posting keys are defined follow this menu path: IMG: Financial Accounting ➤ Financial Accounting Global Settings ➤ Document ➤ Define Posting Keys.

Posting Key Controls

1️⃣ Debit / Credit Indicator

Determines whether the line item is:

Debit

Credit

Example:

40 → G/L Debit

50 → G/L Credit

01 → Customer Debit

11 → Customer Credit

👉 Ensures accounting equation integrity.

2️⃣ Account Type

Defines which type of account can be posted with that posting key:

D – Customer

K – Vendor

S – G/L Account

A – Asset

Example:

Posting key 40 → Only G/L accounts

Posting key 21 → Vendor credit

👉 Prevents wrong account category usage.

3️⃣ Sales Related Indicator

Used mainly in SD-FI integration.

If marked as sales-related:

Line item can carry SD fields (e.g., sales order, billing reference).

Enables revenue integration scenarios.

👉 Important for revenue postings from SD billing.

4️⃣ Special G/L Transaction

Determines whether posting is:

Normal item

Special G/L (Down payment, Bill of exchange, Guarantee, etc.)

Example:

Vendor Down Payment

Customer Down Payment

👉 Controls posting to alternative reconciliation accounts.

5️⃣ Reversal Posting Key

Defines which posting key is used during reversal.

Example:

If original posting key is 40 (Debit),

Reversal posting key becomes 50 (Credit).

👉 Ensures automatic debit-credit swap during FB08 reversal.

6️⃣ Payment Transaction Indicator

Specifies whether line item is related to:

Incoming payment

Outgoing payment

Used for:

Clearing logic

Payment program (F110)

Open item management

👉 Important in AP/AR clearing and automatic payment runs.

Posting Key Controls Fields of Document Line Items -

Posting Key Codes for Account Type -

Definition of Number Range Intervals
A document type in SAP S4 HANA must be assigned a number from a predefined number range you have defined. A document type is assigned to a number range. When a transaction is posted, the system will automatically assign a number to the document from the number range you have defined via the document type you assigned to the document. You can either define your own number ranges or you can copy the predefined number ranges provided by SAP in the system.

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Note During your configuration you can define whether you want the system to assign a number from the number ranges you have defined automatically or whether you want the user to manually assign a number to a document during posting. Tthis decision is based on your client requirements

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There are three steps to create number range intervals in SAP S4 HANA. We will be looking at each of these steps in turn in this activity.

In this activity, we will be looking at how to define your own number ranges by copying a subject from another company code.

Defining Document Number Ranges using Copy Subobject Function

The number ranges you defined in the activity will be automatically assigned by the system sequentially to documents during posting. To go to the screen where to define your own number ranges follow this menu path: Financial Accounting ➤ Financial Accounting Global Settings ➤ Document ➤ Document Number Ranges➤ Define Document Number Ranges.in Figure 3-2.

Figure 3-2. Copying another company code number ranges using the Copy Subobject function

The first Interval button from the right on the screen will allow you to look up existing number ranges in the system. The second Interval button will allow you to create your number interval. Since you want to copy another company code number ranges using Copy Subobject. Click Copy Subobject at the top of the screen. Copy Company Code dialog box appears. Enter the company code you want to copy in the From field and enter you company code in the To field and click Copy at the bottom of the Copy Company Code dialog box. The Number Range Interval Transport message screen will be displayed with the message “The intervals are not included in automatic recording of customizing change…” as in Figure 3-3.

Figure 3-3. Number range interval transport message

Click Enter, which is the green tick at the bottom right of the screen. The Edit Intervals: Accounting document, Object RF-BELEG screen has the message your source company code was copied to your company code. To view the number ranges you have copied, click the Display Intervals button (this is the intervals button with a goggle icon), which is the first button from the left side of the screen. The Edit Intervals: Accounting document, Object RF-BELEG, Subobject (your company code) screen is displayed (Figure 3-4).

Figure 3-4. Number range intervals you copied to your company code

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Note A assigning years to your number ranges has a drawback. this means each year you have to define other number range intervals for the year that are missing from your number ranges. Tto ensure that you never run out of number ranges, you can enter 9999 in the year column. For example, instead of using years like 2018, 2019, 2020, and so on, you enter 9999 in all of the year column. Tthis means your number ranges are valid infinitely. Tthis will save the time of maintaining number range intervals each year.

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Tolerance Groups

User/Employees Tolerance Group is a configuration that specifies the degree of tolerance or permissible limit a user or group of users is allowed for posting and clearing documents or line items.

Define FI Tolerance Group for Users (OBA4) *

In this activity, we specify the various amount limits for users. These limits determine:

• The maximum amount up to which an employee is permitted to post a document.
• The maximum amount up to which an employee is permitted to enter a line item in a customer or vendor account.
• The cash discount percentage an employee is permitted to enter in a line item.
• Up to what amount payment differences can be accepted.
• Permitted Payment Differences - The amounts or percentage rates that the system is to automatically post to a separate expense or revenue account if the cash discount cannot be adjusted.

Group: Leave this field blank. The system will treat a blank tolerance group as a default tolerance group. A default tolerance group is a minimum requirement for all employee groups in the system. This is applicable when employees are not assigned to any specific tolerance group.

Company Code: Enter your Company Code in the Company Code field. The company code will serve as the company code for your tolerance groups for employees

    In the Upper limits for posting procedures section enter the maximum amount an employee can post in the system in the following fields:

• Amount per document: This is the maximum amount per document an employee is authorized to post. It is important to note that an employee will not be able to exceed the amount defined here during document posting.
• Amount per open item account item: This is the maximum amount per open item that an employee can enter in the line item in a vendor/customer account. An employee can post only an amount up to the specified amount defined here per open item. Any amount exceeding this amount will be rejected by the system during posting.
• Cash discount per line item: The maximum cash percentage cash discount per line item the employee can grant. When an employee grants a discount during document posting, the system will check to make sure that the discount granted is within the acceptable levels per line item you define here.
• In the Permitted payment differences section of this screen, specify the Amount, Percentage, and Cash Discount adjustment in Revenue/Expense fields as permitted difference. During payment difference posting, the system will automatically check the amount posted against the percentage specified and use whichever is lower.

When you have updated the New Entries: Details of Added Entries screen (Figure 4-5), save you work by clicking the Save button at the bottom right of the screen. The system will notify you that your data was saved at the Status bar at the bottom of the screen.

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Note dot (.) is used to separate thousands and comma (,) is used to separate pence/cents. For example 190,222.22 is represented in as 190.222,22

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Assign Users to Tolerance groups (OB57) *

It allows certain users to handle financial transactions with specified Limit.

For Users that you do not assign to a group, you must define tolerance values for which you leave the Group field 'Blank' and only specify the company code. Keeping blank is the minimum tolerance limit

Document change rule:

What is " Document Change Rules " in SAP ?

In SAP, Document Change Rules refer to the configuration settings that determine which fields in financial documents can be changed/restricted from change after they have been posted. 

This involve errors correction, information update, adjusting values, changing dates, and other relevant non-editable restrictions.

For example, certain fields such as document text, value date and payment method may be restricted from being changed or allowed to change after posting to maintain accurate financial records and audit trails.

Document Change rules can be for the following :

Account type : A, D, K, M, S

Transaction Type : Special GL Transactions

Company Code.

How to apply Rule for changing field on Document ?

When there’s a necessity to modify the non-editable data in an SAP document, without reversing the document, SAP Document Change Rules can be applied. 

The Document Change Rules can be applied on :

1. Header Level
2. Line-Item Level

Go to Change Document - (T. code - FB02) 

Open the Posted Document Number for which you want to make changes :

• Click on " Document Header " - as you can see below, here the Document Header Text field of header is editable.

• Double-click on one of the " Line Item "

• as you can below, here Assignment field is editable.

Suppose, if we want to edit the Reference field in Document Header and Text field in line item of the same Posted document.

Configuration Steps to Change Fields of Document Header :

STEP 1: Select and then Press Function key "F1" on the field for which you want to change

STEP 2 : Click on Technical information icon as shown below

STEP 3 : Copy the "Table Name" and "Field Name" fields 

STEP 4 : Go to Transaction Code - OB32  and click on 'New Entries' >>

STEP 5 : Enter, 

• Table Name-Field Name (copied from STEP 3)
• Company code
• Check "✓" Field can be changed and save.

Now, you can change the Document header text field of Posted GL Document.

Now, you can change the Document header text field of Posted GL Document.

Configuration Steps to Change Fields of Document Line-Item :

Settings to make the line-Item field editable is similar to that of Document Header field.

STEP 1 : Select the field and copy the Table name and Field name.

STEP 2 : Go to T.Code OB32 >> Enter values in fields as shown below :

• Field Name - Technical Name of the Field (Copied from STEP 1)
• Account Type - This determines whether it's a Customer(D), Vendor(K), Asset(A), Material(M), General Ledger(S) Line-Item.
• Transaction Type - Enter Special G/L Transaction type i.e., 'A' (Down payments) or 'W' (Bills of Exchange) or Keep it blank for all others.
• Company Code - Enter your company code or Keep it  " " blank for all.
• Field can be Changed - "✓" tick to modify / " " untick to restrict changes.

Now, you can change the document Line-Item field of Posted GL document.

By following these steps, you set up a rule in SAP that decides when and where changes can happen to specific fields in posted documents.

negative posting allowed or not is done by 3 level