Day 8 — What is a Posting Key in SAP FICO?

What is a Posting Key in SAP FICO?

A Posting Key is a two-digit number that controls how a financial transaction is posted in SAP. It determines: • Debit or Credit entry • Account type (G/L, Customer, Vendor) • Field status during posting Common Posting Keys: • 40 = G/L Debit • 50 = G/L Credit • 01 = Customer Debit • 11 = Customer Credit • 21 = Vendor Debit • 31 = Vendor Credit

A company purchases office chairs worth ₹10,000 from a vendor. Accounting Entry: • Office Expense A/c (Debit) → Posting Key 40 • Vendor A/c (Credit) → Posting Key 31 SAP uses the posting keys to understand which account should be debited and which account should be credited.

1. What is a Posting Key? 2. Why is Posting Key required in SAP? 3. What is the Posting Key for G/L Debit? 4. What is the Posting Key for Vendor Credit? 5. Explain Posting Key with a real-time example.