What is transaction type in SAP FI-LC - Consolidation?

SAP Term: transaction type

• Component: FI-LC

• Component Name: Consolidation

• Description: The types that are used to show the make up of financial statement items. They are used, for example, to show: The changes in fixed assets, from opening to closing balance The changes in provisions The changes in equity In , transaction types can also be used to define statistical reports such as Revenue and Expense according to: Areas of activity Divisions Product groups Extracted values such as the closing balance of an item can be defined using totals formulas. For the sake of properly recording the transactions of the current year which influence the opening balance of the following fiscal year, the SAP System enables you to carry forward transaction types to other transaction types within the procedures for carrying forward balances.

Smart SAP Assistant

• Key Concepts: 
  Transaction type is a feature of the FI-LC Consolidation component of SAP software. It is used to define the type of transaction that is being processed. Transaction types are used to differentiate between different types of transactions, such as sales, purchases, and transfers. 
  
  How to use it: 
  Transaction types are used to define the type of transaction that is being processed in the FI-LC Consolidation component. This helps to ensure that the correct accounting entries are made for each transaction. To set up a transaction type, users must first define the characteristics of the transaction, such as the account type, document type, and posting period. Once these characteristics have been defined, users can then assign a transaction type to each transaction. 
  
  Tips & Tricks: 
  When setting up a transaction type, it is important to ensure that all of the characteristics are correctly defined. This will help to ensure that the correct accounting entries are made for each transaction. Additionally, it is important to ensure that all transactions are assigned a unique transaction type so that they can be easily identified and tracked. 
  
  Related Information: 
  For more information on setting up and using transaction types in SAP FI-LC Consolidation, please refer to the SAP Help documentation. Additionally, there are many online resources available which provide detailed instructions on how to set up and use transaction types in SAP FI-LC Consolidation.