SAP FI CO Training

SAP Basics and Organisation Structure

Ravi Sankar Venna
IT Consultant

SAP FI CO Training

10 August 2013

Basic Modules in SAP

Financial Accounting (FI) Controlling (CO) Materials Management (MM) Sales and Distribution (SD) Production Planning (PP) Plant Maintenance (PM) Quality Management (QM) Project Systems (PS) Human Resources (HR)

SAP FI CO Training

10 August 2013

Sub-Modules in FI Module

General Ledger Accounting Accounts Receivable Accounts Payable Bank Accounting Fixed Assets Special Purpose Ledger Retail Ledger Lease Accounting Travel Management

SAP FI CO Training

10 August 2013

Sub-Modules in CO Module

Cost Element Accounting Cost Center Accounting Internal Orders Activity Based Costing Product Cost Controlling Profitability Analysis Profit Center Accounting

SAP FI CO Training

10 August 2013

Organisation Structure FI Client (Technical)

Operating Concern

Controlling Area 1

Controlling Area 2

Company Code 1

Company Code 2

Plant 1
SAP FI CO Training 10 August 2013

Plant 2

Contd..
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Organisation Structure FI

Company Code 1

Company Code 2

Bus Area 1

Bus Area 2

Bus Area 3

Bus Area 4

Business areas are used for internal purposes to create balance sheet and profit and loss statements or alternatively can be used to meet external segment reporting requirements. Every business area can be used by every company code, i.e., Business Areas cut across the Company Codes.
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Terms you should Know

Client
In commercial, organizational and technical terms, a self-contained unit in an R/3 System with separate master records and its own set of tables.

Company Code
The smallest organizational unit of Financial Accounting for which a complete self-contained set of accounts can be drawn up for purposes of external reporting.

Business Area
An organizational unit of financial accounting that represents a separate area of operations or responsibilities within an organization and to which value changes recorded in Financial Accounting can be allocated. You can create financial statements for business areas, and you can use these statements for various internal reporting purposes.
SAP FI CO Training 10 August 2013

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Terms you should Know

Cost Center
An organizational unit within a controlling area that represents a defined location of cost incurrence. The definition can be based on: Functional requirements Allocation criteria Physical location Responsibility for costs

Profit Center
An organizational unit in Accounting that reflects a management-oriented structure of the organization for the purpose of internal control.

Contd..
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Terms you should Know

Chart of Accounts
A classification scheme consisting of a group of general ledger (G/L) accounts. For each G/L account, the chart of accounts contains the account number, the account name, and technical information. A chart of accounts must be assigned to each company code. This chart of accounts is the operative chart of accounts and is used in both financial accounting and cost accounting.

Other charts of accounts include:

Country-specific charts of accounts These are structured in accordance with legal requirements of the country in question Group chart of accounts This is structured in accordance with requirements pertaining to Consolidation.

Contd..
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Terms you should Know

Sales Organisation
An organizational unit in Logistics that structures the company according to its sales requirements. A sales organization is responsible for selling materials and services.

Distribution Channel
Distribution Channel through which saleable materials or services reach customers. Distribution channels include wholesale, retail, and direct sales. You can assign a distribution channel to one or more sales organizations.

Division
An organizational unit based on responsibility for sales or profits from saleable materials or services.

Sales Area
A combination of sales organization, distribution channel, and division.
SAP FI CO Training 10 August 2013

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Terms you should Know

Purchasing Organisation
An organizational unit in Logistics, subdividing an enterprise according to the requirements of Purchasing. A purchasing organization procures materials and services, negotiates conditions of purchase with vendors, and is responsible for such transactions.

Purchasing Group
A key for a buyer or group of buyers responsible for certain purchasing activities. Internally responsible for the procurement of a material or a class of materials.

Purchasing Area
A purchasing group in a purchasing organization is assigned to one purchasing area only.

Contd..
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Terms you should Know

Plant
In Logistics a plant is an organizational unit for dividing an enterprise according to production, procurement, maintenance, and materials planning. A place where materials are produced, or goods and services are provided.

Storage Location
An organizational unit allowing differentiation between the various stocks of a material in a plant.

Shipping Point
The Organisational Unit in Logistics that performs shipping processing. The shipping point is the part of the company responsible for the type of shipping, the necessary shipping materials and the means of transport. E.g., Company Mail Depot or Plant Rail Station.
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Thank You
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