What is tree type in SAP (FI - Financial Accounting)?

SAP Term: tree type

• Component: FI

• Component Name: Financial Accounting

• Description: An application for which a format tree is created in the Data Medium Exchange Engine. For example, the tree type PAYM represents the payment program in . Format trees of the tree type PAYM are used for creating DME files for outgoing payments.

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• Key Concepts: 
  Tree type is a feature in SAP Financial Accounting (FI) that allows users to create and maintain a hierarchical structure of accounts. This structure is used to group accounts into categories, such as assets, liabilities, and equity. The tree type feature also allows users to assign different characteristics to each account, such as currency, company code, and account group. 
  
  How to use it: 
  To use the tree type feature in SAP FI, users must first create a tree type. This can be done by navigating to the Tree Type Maintenance screen in the SAP system. Once the tree type is created, users can then assign accounts to it. This is done by selecting the appropriate tree type when creating or editing an account. 
  
  Tips & Tricks: 
  When creating a tree type, it is important to consider how the accounts will be grouped together. For example, if you are creating a tree type for assets, you may want to group them by asset class or location. Additionally, it is important to ensure that all accounts assigned to a tree type have the same characteristics, such as currency and company code. 
  
  Related Information: 
  For more information on using the tree type feature in SAP FI, please refer to the SAP Help documentation or contact your local SAP support team. Additionally, there are many online resources available that provide detailed instructions on how to use this feature.