FI Overview

GL

AM
FI

AR AP
Special Ledger

CON

Financial Accounting
G/L Reporting
Legal or external reporting
Balance sheet Income Statement Statement of Financial Position

Financial Accounting
External Accounting
Financial Position Profit & Loss Balance Sheet

Bankers, Lenders

Stockholders

External Auditors IRS, Taxing Authority SEC

CO/EC Overview
COMPONENT VIEW ROLE

Cost Center Acctg - CO-CCA

Internal Orders CO-OPA Projects - PS Product Costing - CO-PC Activity Based Costing Profitability Analysis-CO-PA Profit Center Acctg-EC-PCA Executive Info. System-EC-EIS

Costs
Costs Costs Costs Costs Profits Profits Any data

Cost Tracking
Small Projects Large Projects Product Costing Cost Management Margin by multi-cuts Profit & Loss Repsons. Cross-module reports

Controlling
CO Reporting
Internal management reporting Reports by cost centers or other cost objects and cost elements Cost centers Orders and Projects Budget/plan Actual vs. plan

Controlling
Internal Accounting
Departmental Expense Report Salaries 10,000 Overhead 8,000 Other 5,000 Total 23,000

Executives

Controllers

Department Managers

Senior Management

FI and CO comparison
FI
Legal or external reporting Reports by accounts Balance Sheet Income Statement

CO
Internal management reporting Reports by cost centers and cost elements Cost Center Reports

FI/CO Organizational Structures

Client Company Chart of Accounts Company Code Business Area Credit Control Area Controlling Area

CLIENT

Client
Highest hierarchical level in an SAP system A complete database containing all the tables necessary for creating a fully integrated system Master records are created at the client level

CLIENT

COMPANY

Company
Consolidated financial statements are created at the company level A company can include one or more company codes
All company codes must use the same chart of accounts and fiscal year

CLIENT

COMPANY

CHART OF ACCOUNTS

Chart of Accounts
A listing of the accounts A chart of accounts must be assigned to every company code Several company codes can use the same chart of accounts
A different chart of accounts can be used if a different grouping of the chart of accounts is required

CLIENT US CHART OF ACCOUNTS

GERMAN CHART OF ACCOUNTS

Co code 1000

Co code 2000

Co code 3000

Co code 4000

Co code 5000

CLIENT COMPANY CHART OF ACCOUNTS

COMPANY CODE

COMPANY CHART OF ACCOUNTS

COMPANY CODE

COMPANY CODE

Company Code

A BALANCED SET OF BOOKS

A required structure A legally independent entity The smallest organizational unit for which accounting can be carried out

The level where business transactions are processed The level where accounts are managed The level where legal individual financial statements, such as the balance sheet and the profit and loss statement, are created

CLIENT COMPANY CHART OF ACCOUNTS CREDIT CONTROL AREA COMPANY CODE COMPANY CODE COMPANY CHART OF ACCOUNTS CREDIT CONTROL AREA COMPANY CODE

Credit Control Area

An organizational unit or area of responsibility created to control customer credit limits A company code is assigned to one and only one credit control area Multiple company codes can be assigned to one credit control area

CLIENT

COMPANY CHART OF ACCOUNTS

COMPANY CHART OF ACCOUNTS

CONTROLLING AREA
COMPANY CODE COMPANY CODE

CONTROLLING AREA
COMPANY CODE

Controlling Area
An organizational unit defining the company's cost/ managerial accounting operations A company code is assigned to one and only one controlling area A controlling area can have multiple company codes assigned to it
This allows cross company cost allocations and reporting

Fiscal Year Variant

DECEMBER Determines the fiscal year Calendar year or non-calendar year Allows the use of special periods to aid year-end closing Is assigned to a company 7 code

FEBRUARY
JANUARY 1 2 3 4 5 6