Unit3:FinancialAccounting

FIFocuseson:
1.

G/L

2.

ProcessingofReceivables

3.

AssetAccounting

MajorProcesses:
A/RO2CCustomer
A/PP2PSupplier

PartiesandFactorsInvolved:
4.

Bank

5.

Treasury

6.

FSCM

7.

AssetManagement

8.

BankLedgersupportsbookingofcashflows

ImportantTasksofFI:
9.

Recordingofmonetaryandvalueflows

10.

Evaluationofinventories

TheGeneralLedger
11.

ContainsrecordsofallaccountingrelevantbusinesstransactionsviaG/LAccountsinabusiness
perspective

12.

IsstructuredaccordingtoaChartofAccounts
1.

13.

ContainsDefinitionsofallG/Laccounts
1.

Account#

2.

G/LAccountDesignation

3.

CategorizationofG/LAccountsasI/SorB/S

OftencontainsONLYcollectivepostings
1.

SubledgerspassdataincompressedformtoG/LviaReconciliationAccounts

14.

ManagedatCClevel
1.

B/S&I/Scompliedfromthis

15.

TransactionsenteredintoSubledgers,MM(materialstock)andTreasuryflowintoB/Sinrealtime

16.

ThecomponentTreasury(TR)focusesonfunctionssuchas:

17.

1.

Paymentmeans

2.

TreasuryManagement(financialmeans,Forex,derivatives,bonds)

3.

Loans

4.

MarketRiskManagement

OneLeadingLedgerineachClientforNewG/LAccounting
1.

OtherledgerscanexistwithintheG/L

SAPFSCM:
18.

Helpsenterprisestooptimizetheircashflows

19.

Improvementsininvoicing,reconciliation,preventingarrearandprocessrelateddelaysinpayments
(printing+sendinginvoices)

20.

Representsamajorareaofprocessinnovationandimprovementinabroadrangeofindustries

FourKeyFunctionalities:
1.

EvaluatetheCustomer(SAPCreditManagement)

2.

Helpingtocontactcustomers

3.

Disputemanagement

4.

Collections

ProcessStepsinFSCM:
1.

Checkcreditworthiness

2.

IssueInvoice

3.

ForecastCash

4.

FinanceWorkingCapital

5.

ResolveDisputes

6.

CollectCash

7.

SettleandPay

8.

Reconcile


FSCMComponents:

1.

2.

3.

SAPBillerDirect(ElectronicBillPresentmentandPayment)
1.

Sendandreceiveinvoiceselectronically

2.

Customersaccessinfoviainternet

3.

Reducesmediafragmentation,allowsvendorstointeractw/customers

SAPDisputeManagement
1.

Systemsupportforprocessingpaymentdeductions

2.

Crossdepartmentalresolutionofdisputecases

3.

Collaborationw/customerssupportedbycorrespondencewiththemviainternet(usingSAP
BillerDirect)

4.

Improvesreceivablesmanagementandspeedsupinvoicesettlement

SAPCollectionsManagement
1.

4.

5.

6.

7.

Structure,classify,minimizereceivablesowed

SAPCreditManagement
1.

Providescompaniesw/largecustomerbasetheopportunitytomonitortotalliabilitiesof
customers,usingappropriatecreditlines

2.

Advantageofcentralizedandcompanywidemanagementofcreditlines

3.

Eliminatesriskofcustomerexceedingcreditlimit

4.

DifferentDistributionChannelsusesamedatatocheckcreditworthiness

SAPCashandLiquidityManagement
1.

Effectivelymanageliquidityandcurrencyrisk

2.

Redundantdataentryeliminated

3.

Allcorporatesectorsoperateonuniqueandconsistentdatabase

SAPInHouseCash
1.

Allowsdiversifiedcompaniestooptimizeintragrouppaymenttransactionsbyopeninganin
housebank

2.

Inhousecashcenterisavirtualbankwithinthecorporategroup

3.

Savesoncostsofexternalnettingservices+givesflexibilitywhenprocessingpaymentnetting
transactions

SAPTreasuryandRiskManagement

1.

Setoffunctionsformanagingfinancialtransactionsandrisk

FIvs.CO

FI

CO

Audience

External

Internal

Objective

LegalReporting

InternalManagementofCostsand
Revenues

Requirements

DeterminedbyLaw

Uptocompany

Level

DefinedbyLaw

CostsandRevenuesatahigherlevel
thanFI

*costsandrevenuesfromFIusedinCO
FIOrganizationalLevels

CompanyCode
8.

Shouldcreatebasedontaxlaw,commerciallaw,otherFIcriteria

9.

Usuallycreatedbasedongeographicconsiderations

10.

CCkeyisa4digitalphanumericcode

Segment
11.

AvailableasofSAPERP2004(ECC5.0)

12.

InNewG/L,canbeusedasadimensionforreportingpurposes

13.

Aimistoprovideinsightintodifferentbusinessactivitiesofadiversifiedcompanyandinfoaboutthe
generalenvironment

14.

Purposeistoprovideabetteroverviewofthecompanyseconomicperformance,improveforecasting
andbetteranticipaterisksandopportunities

15.

IASDefinition

16.

1.

BusinessSegmentisasubactivityofacompany,involvingmanufactureofproductorprovision
ofservice,withrisksandrevenuethatdifferfromothersegments

2.

GeographicalSegmentrisksandrevenuesthatdifferfromothergeographicsegmentsinterms
ofeconomicorpoliticalfactors

USGAAPpartofacompanythatincurscosts,generatesrevenue,hasownfinancialdataw/regardto
profit+resourceconsumption

ControllingArea
17.

SelfcontainedOrganizationalStructureforwhichcostsandrevenuescanbemanagedandallocated

18.

Representsaseparateunitofcostaccounting

19.

AssignmultipleCCstocarryoutCrossCCcostaccounting
1.

SameoperatingCOAandfiscalyearrequired

GeneralLedgerAccounting

20.

Representsacompanyssetofbooks

ChartofAccounts
21.

eachG/LsetupaccordingtoaCOA

22.

containsdefinitionsofallG/Laccountsinanorderedform

23.

consistsof

24.

1.

Account#

2.

AccountName

3.

TypeofG/LAccount(B/SorI/S)

Canspecifyanunlimited#ofCOAs

GLAccountMasterRecord
Comprisedof:
25.

26.

ChartofAccountsSegment
1.

Descriptionofaccount

2.

Type:B/SI/S

3.

AccountGroup(controlsCCsegmentfields)

4.

ConsolidationAccount#

CompanyCodeSegment
1.

DetailshowspecificCCwillmanageaccount
1.

Accountcontrol

2.

Accountmanagement

3.

Bank/financialdetails

4.

Jointventures

5.

Interestcalculation

6.

Documentcontrol

AccountGroups
27.

ClassifyG/Laccountsintouserdefinedsegments(cash/asset/material/PL/liabilities,etc)

28.

Determine#rangeofaccountsthatwillfallintothosesegments

29.

Fieldstatus(Supress/Required/Display/Optional)

ReconciliationAccountsandSubledgers
30.

EnsuresrealtimeintegrationofsubledgeraccountswithG/L

FinancialStatementversions
31.

Helpstomeetvariousreportingrequirements

32.

Defineexactlywhichaccountsappearinwhichlineitemsofthefinancialstatements

ProfitCenters(previouslyCOonly,aprofitareaofresponsibility]
33.

LikeCCs,functionasadimensionforreporting
1.

34.

FinancialstatementscanbecreatedforPCs

Canrepresent:
1.

Anorganizationalunit(plant)

2.

Alineofbusiness

3.

Ageographicallocation

35.

SinceSAPERP2004(ECC5.0),arenowanintegralpartofG/L

36.

Stillconsideredmasterdata

G/LAccountPostingpage68

PostingKey

37.

Usedforinternalcontrol

38.

Accounttype/DebitorCredit/FieldStatus

AccountsPayable(P2P)

POGRIVPayment

VendorMasterRecord
39.

Containsdatathatcontrolshowtransactiondataispostedandprocessed

40.

Includesallinfoaboutavendorneededtodobusinessw/them

41.

ClientLevel
1.

Vendorspecificinfo

2.

Name,address,etc

3.

anyCCwillhaveaccesstoVendorGeneralInfo

42.

CompanyCode

43.

PurchasingOrganization
1.

DataspecifictopurchasinginVMRmustbeenteredbeforesuppliersmasterrecordcanbeused

DocumentSplitting
44.

UsedbecausecorporategroupsarerequiredtocreateaB/Satsegmentlevel

VendorPayment
1.

SelectPaymentMethodandBank

2.

Selectitemsforpayment

3.

Calculatepaymentamount,takeaccountofcashdiscountperiods

4.

Postpaymentdocument

5.

Printpaymentmedium


IfAutomatic
1.

Postpaymentdocument

2.

Clearopenitems

3.

Preparedataforprinting

PurchasetoPayProcess(AccountingView)
4.

PurchasingorganizationMUSTcreatepurchasespecificdatainVMRbeforethatcanuseSupplierMaster
record

PO
5.

Noaccountingdocumentsgenerated

GR
6.

Systemchecksquantityofgoodsreceivedvs.Orderquantity

7.

Materialdocumentcreatedtoupdatestock

8.

Atthesametime,FIDocumentcreated(DebitMaterials,CreditGR/IR)

IV
9.

InvoicereceivedinLogisticsinvoiceverification

10.

Vendorinvoicecheckedforcorrectness

11.

Vendorinvoiceposted(POhistoryupdated)

12.

Atthesametime,FIdocumentgenerated(DebitGR/IR,CreditA/P)

Payment
13.

DebitA/P,CreditBankReconciliationwhenpaymentmade

14.

Oncepaymentverified,DebitBankReconciliation,CreditBankAccount

AccountsReceivable(O2C)

SODeliveryBillingPayment

CustomerMasterData
15.

Client

16.

CC

17.

SalesArea(SalesOrg+DistributionChannel+Division)
1.

Salesareaspecificsettings

2.

Mustbedefinedbeforeitcandobusiness

CreditManagement(SAPCreditManagement)
18.

AccountsareprocessedonthebasisofCreditSegmentintheCMR
1.

Creditsegmentdatacontainsalldatarequiredforcheckingcreditwhensalesorderisaccepted
andforresultingorderrelatedcreditdecisions

2.

DataupdatedfromSalesandFI
1.

SDSalesOrderoutbounddelivery(ECC6.0)BillingDocument

2.

FITransferredinreportUKM_TRANSFER_ITEMS

19.

MaintainedinaseparatedatabasisinSAPCreditManagement

20.

Includesallinformationaboutbusinesspartnerrequiredformonitoringcreditrisk

21.

CreditProfile
1.

Containsdatarelatedtoscoring,limitcalculations[RoleUKM00(CreditMgtBusPost)usedto
maintaindata]

SO
22.

SalesOrderCreated(NoFIdocument)

Delivery
23.

Outbounddeliverydocumentcreated(SD)

24.

GoodsdeliveredpostedasGoodsIssue(MM)

25.

Atthesametime,FIGoodsIssue(COGSDebit/InventoryCredit)

Billing
26.

SDBillingdocumentcreated,invoicesenttocustomer

27.

Atthesametime,FIInvoice(A/RCustomerDebit/RevenueCredit)*RevenueRecognized

Payment
28.

FI(CreditA/Rcustomer/DebitBank)

ServiceO2C
29.

Expensesincurredwhenservicesprocuredoutsidecompanyandprovidedinternally

30.

Externalservicespostedwithout,internalservicespostedwithanaccountassignmenttoCostCenter
performingactivity(personnelexpenses)

CustomerPayments
31.

Maximumamountthatconstitutesaminorpaymentdifferenceisdefinedintolerancegroupsettings

32.

Anylargerdealwithmanually
1.

Partialpaymentitemdoesntclear

2.

ResidualItemopeninvoicecleared

3.

Newopenitem(ResidualItem)inamountofpaymentdifferenceiscreated

FixedAssetAccounting

Allowsorganizationsto:
33.

Manageassetinfo

34.

Posttransactionsduringlifeofanasset

35.

Calculateassetdepletion

AssetMasterRecord
36.

EachassetbelongstoaCompanyCodeandBusinessArea(postingsmadeforassetchangeboth)

37.

CanalsoassignassetstoCOObjects(CostCenter/InternalOrder/ActivityType/LogisticsOrg.Units)

38.

AssetsBusinessArea=11//BusinessAreaAssets=1many

AssetClass
39.

EachassetMUSTbeassignedtoone

40.

CoststhatdontappearonsamelineitemofB/Shavetobeassignedtodifferentones

41.

Atleast1specialassetclassforassetsunderconstructionandlowvalueassets(4000,5000)

42.

Canalsocreateforintangibleandleasedassets

43.

ApplicationComponentPM(PlantMaintenance)usedfortechnicalmanagementofassets

44.

ApplicationComponentTR(Treasury)usedformanagingFinancialAssets

10

AssetTransactions(acquisitions,retirements)
45.

Canbepostedinvariousways:
1.

w/oavendororPOoffsettingentrymadetoaG/Lclearingaccount

2.

toavendor,w/oreferencetoaPO

3.

ViaMMusingMMfunctions(PO,GR,InvoiceReceipt)

TransactionType
46.

AnadditiontoPostingKeys70(debit)and75(credit)

47.

Mustbeincludedwhenpostingtoanasset
account

48.

Necessary,becauseitspecifiesexactly
wheretheassetpostingislistedintheasset
historysheet

49.

Detailsthedistinguishingcharacteristicsof
variousassetpostingswhichinclude:
1.

BuyingandSelling

2.

CreditMemos

3.

AcquisitionfromInternal
Production

4.

AdjustmentPostings

5.

Retirementw/oRevenue

6.

DepreciationandAppreciation

This image cannot currently be display ed.

AssetExplorer
50.

Offersoverviewofactivityforanasset

51.

CandrilldowndetailstoFItransactions

11

52.

Possibletobranchmasterdata,cost
objects,performsimulations

DepreciationAreas
53.

Oftenassetbalancesneedtobe
valuateddifferentlyforvarious
purposes

54.

Tokeepmorethanonevaluationbasis,depreciationareasarekeptinSAP

55.

DatastoredinAssetMasterRecord

DepreciationRun
56.

DepreciationonlypostedintoassetaccountingandG/Lafterdepreciationrun

57.

PostedtocorrespondingdepreciationaccountsinG/LandtoassignedCOCostobjectassignedtoAsset
Master

58.

Canberunindirectorbatchmode

12