Document Types in Accounting Process
Let's talk about Document Types in the Accounting Process and their role in SAP
SAP FINANCE
Bhupender Sharma
9/17/20252 min read
What Are Document Types in SAP? Why Are Document Types Important?
Think of Document Types as labels or categories for different kinds of financial transactions in SAP. Just like you might label folders at home—like "Bills," "Receipts," or "Bank Statements"—SAP uses document types to organize and manage financial entries.
They matter for:
Organization & Clarity
They help SAP know what kind of transaction is being recorded—like a customer invoice, vendor payment, or internal posting.
Control & Validation
Each document type has specific rules—such as which accounts can be used, whether a reference number is required, or who is authorised to post it. This helps prevent mistakes.
Automation & Workflow
SAP can trigger specific processes based on the document type. For example, a vendor invoice may automatically be routed to the approval workflow.
Reporting & Analysis
Since transactions are categorised, it’s easier to filter and analyse data. You can quickly find all customer invoices or internal adjustments.
Below image gives a basic example of Document Types and its flow in SAP or any ERP system
How the Document of varous Types be used by different groups within and outside of the Organisation.
Accountants use them to ensure correct entries.
Auditors rely on them to trace and verify transactions.
SAP Consultants configure them to match business needs.
Managers use them indirectly through reports and dashboards.
SAP Configuration Steps for Document Types (FI Module)
Access the Configuration Path
Transaction Code: SPRO
Navigate to:
SAP Reference IMG → Financial Accounting → Financial Accounting Global Settings → Document → Document Types → Define Document Types
Define Document Type
Here, you create or modify a document type.
Document Type Code (e.g., SA, KR, DR)
Description (e.g., "General Ledger Posting", "Vendor Invoice")
Number Range Assignment – Link to a number range interval.
Account Types Allowed – Choose from:
A – Assets
D – Customers
K – Vendors
M – Materials
S – G/L Accounts
Set Control Parameters
Posting Keys – Define debit/credit behaviour.
Reference Number Required – Enforce document traceability.
Negative Posting Allowed – Enable reversal entries.
Document Reversal Type – Specify reversal document type.
Assign Number Ranges
Go to:
Financial Accounting → Financial Accounting Global Settings → Document → Document Number Ranges → Define Number Ranges
Assign ranges to each document type to ensure unique identification.
Test the Configuration
Use transaction codes like FB50, FB60, F-02, etc., to post sample entries.
Verify:
The correct document type is used.
Number range is applied.
Posting keys and account types are functioning as expected
Similarly, for other SAP Modules Like CO, MM, SD the Document Types, their Number ranges are defined and assigned as per each process.