CO0004: CO Integration with FI

Version 1.0

India SAP CoE, Slide 1

CO Integration with FI
1 2

PrepareMe TellMe
3

ShowMe
Let Me Help Me

3 5

India SAP CoE, Slide 2

CO Integration with FI
1 2

PrepareMe TellMe
3

ShowMe
Let Me Help Me

3 5

India SAP CoE, Slide 3

Agenda

Prepare Me
Purpose

Use
Challenge

India SAP CoE, Slide 4

Purpose and Use Purpose

All functional processes finally end in accounting entries with various cost objects assignments in FI/CO. Being a CO consultant, it is expected to know the FI-CO Integration points. This courseware will contain integration overview between FI-CO Components

Use
On successful completion of this training, Associate will have fair idea on.. - The Integration points between FI & CO.

India SAP CoE, Slide 5

Challenges
Internal Vs. external reporting: Challenge to use different sub-modules in either finance or controlling according to the reporting requirements (whether external or internal) To align the organization structures in Finance and Controlling Few examples: Whether all company codes should be tagged to one controlling area or individual 1 company code :1 controlling area Whether profit center accounting in controlling should be chosen instead of business area in financial accounting. Determining functional area from either in cost center or GL accounts posses an integration challenge To make sure that only relevant general ledger accounts are created as cost elements to align finance and controlling reporting.

India SAP CoE, Slide 6

CO Integration with FI
1 2

PrepareMe TellMe
3

ShowMe
Let Me Help Me

3 5

India SAP CoE, Slide 7

FI-CO Flow Org. Elements

Co.Area Co.Code Co.Code Co.Code COA GL Accounts Primary Cost.Elmnt CO Objects Thru Sec. Cost.Elemnt CO Objects
Controlling

Integration Point

India SAP CoE, Slide 8

Basic Flow And Integration

Basic Modules Accounting in FI
Finance: - AP / AR /GL
- Asset Accounting Funds Management

Source Model (1/2)

Links to Controlling

Respective FI Entries

- Revenue & Cost posting in Cost center, Profit Center and CO-PA. -Asset Creation internally is via Internals Order or Project systems which are Controlling entities - Cost center and Profit center as organization entities linked to Fund Center

Sales & Distribution: Sales Order - Delivery - Billing

Accounting Entry for goods movement -Accounting Entry for Revenue & Accounts Receivable

Accounting entries getting registered in -PCA -COPA getting updated for Revenues and COGS and PCA ->getting updated for revenues

India SAP CoE, Slide 9

Basic Flow And Integration

Basic Modules Accounting in FI
Production Planning: - Production Order - Goods Issue and receipts
- Activity Confirmation

Source Model (2/2)

Links to Controlling

-Accounts for stocks, consumption and cost of goods manufactured -Activity Confirmation is not considered as it happens only in CO Module

Production order is a Cost Object in controlling module -PCA updated with consumption and stock entries and WIP during period end processing -COPA / any other cost object is updated with variance on period end processing -Activity confirmation transfers the cost from cost center to production order. This entries are recognized in profit center accounting

Materials Management: Other Goods Issue like issues to cost center or scrapping

Normal consumption entries posted with the probability the GL accounts for accounting could be different

-Receiver objects are normally cost center or internal order & these entries are recognized in Profit center accounting.

India SAP CoE, Slide 10

CO Integration With FI
In respect of General Ledger Accounts in Finance which are P & L in Nature, a Cost Element is created in Controlling. At the time of Document Entry in Finance, along with the General Ledger Account, a Controlling Object like Cost Centre / Internal Order..etc is being entered. Thereby, data flows from Finance to Controlling Module. Following slides shows the five basic integration points between Finance - Controlling They are..
- Default Account Assignments - Additional Balance Sheet / P&L Accounts - Open / Close Posting Periods

- Maintain Exchange Rates

- Maintain Field Status - Fund Center Accounting

India SAP CoE, Slide 11

Default Account Assignments

(OKB9)

Automatic assignment occurs during postings in external accounting (within the FI, MM, or SD components) if we do not enter a CO account assignment objects like cost center order or project for a cost accounting relevant posting. Below are the few examples where automatic postings are defined and used.. - Discounts, exchange rate differences, and banking fees in FI - Price differences and minor differences in MM Following are the CO Assignments which are assigned to Primary cost elements. - Cost Center - Order - Profit Center

India SAP CoE, Slide 12

Balance Sheet / P&L Accounts

Profit Center Determination In this section, Accounts or Range of accounts are assigned to a profit center for the flow of values.

Dummy Profit Center If No profit center is specified in posting, then Dummy Profit center is used.

Profit Center Derivation This is in addition to the above, we can derive profit center based on Co.Code, Account No, Business Areaetc.,

India SAP CoE, Slide 13

Open/Close Posting Periods

- Consultant can specify which periods to be open / close for posting of documents in Finance (Internally Controls' the Controlling postings as well) - It is mandatory to maintain header entry (+) as a basic to make any postings. - However standard SAP System provides 6 types of accounts if consultant wants to maintain them individually - Consultant can specify Period Lower Limit, Upper Limit & Fiscal Year for the period in question. Following are the type of accounts. Assets (A) Vendors (K) Customers (D) GL Accounts (S) Materials (M) Contracts (C)

India SAP CoE, Slide 14

Maintain Exchange Rates

Basically, maintaining exchange rates are mandatory for plan and actual postings: Besides this, following are the few more situations Finance o Translate foreign currency amounts on posting or clearing o Determine the profit/loss on exchange rate differences o Value open items in foreign currency o Value foreign currency account balances Controlling o Determine the controlling area currency equivalents of amounts posted in different company code currencies o Allow project settlement to take account of different controlling area, sender and receiver currencies. The currency translation rates are time-dependent and can be maintained either manually or through program
India SAP CoE, Slide 15

Maintain Field Status

Co.Code
Field Status Variant

(Field Status Group)

FSV

Field Status

FSG @ MD

Transactional

A/c Group

Field Status Group is the one which controls the document entry fields, whether they are allowed for entry or not. If FSG is not maintained properly in customizing, some important CO Objects may be missed from being postedwhich might cause serious accounting imbalances (SDRO) S-Suppress D-Display R-Required O-Optional

India SAP CoE, Slide 16

Account Assignments (Asset Accounting-

ACSET

Cost center specified for APC Values & Depreciation Run

India SAP CoE, Slide 17

CO Integration with FI
1 2

PrepareMe TellMe
3

ShowMe
Let Me Help Me

3 5

India SAP CoE, Slide 18

Default Account Assignments

OKB9

IMG Path: Controlling Cost Center Accounting-Actual Posting-Manual Actual Postings-Edit Automatic Account Assignment

India SAP CoE, Slide 19

Balance Sheet / P&L Accounts

(1/3)

IMG Path: Controlling-Profit Center Accounting-Actual Posting-Choose Additional BS & P&L Accounts-Choose Accounts

If default Profit Center not specified, Dummy PC is considered

India SAP CoE, Slide 20

Balance Sheet / P&L Accounts

Contd(2/3)

VAT Derivation

BS Derivation

India SAP CoE, Slide 21

Balance Sheet / P&L Accounts

Derivation for VAT accounts thru Plant

Contd(3/3)

Derivation for BS accounts thru Co.Code

India SAP CoE, Slide 22

Open/Close Posting Periods

IMG Path: Financial Accounting Global Setting-Document-Posting Periods- Open/Close Posting Periods

Minimal Requirement for posting -+ Header

India SAP CoE, Slide 23

Maintain Exchange Rates

IMG Path: Enterprise Controlling-Consolidation-Data-Automatic Posting-Currency Translation-Exchange Rates-Maintain Exchange Rates

User can maintain both Direct Indirect Quotation

India SAP CoE, Slide 24

Maintain Field Status

(Field Status Group)

IMG Path: Financial Accounting Global SettingsDocumentLine ItemControls Define FSVariant

India SAP CoE, Slide 25

CO integration with FI
1 2

PrepareMe TellMe
3

ShowMe
Let Me Help Me

3 5

India SAP CoE, Slide 26

Document Entry in FinanceDoc. Entry

Enter Order / Cost centre or any specified CO Assignment Object & POST.

India SAP CoE, Slide 27

Document Entry in Finance.. Doc. No.

Posted document number is displayed

India SAP CoE, Slide 28

Document Entry in FinanceDisplay

Enter the Document number, Company Code, Fiscal Year in TCode FB03 & Press ENTER.

Once we display the document, Click on Accounting Doc. to view the related Controlling Data

India SAP CoE, Slide 29

Document Entry in Controlling..

Order Number to which the Cost is booked is displayed

For every Finance Document posted, a corresponding Controlling Document is generated, as displayed above.
India SAP CoE, Slide 30

CO Integration with FI
1 2

PrepareMe TellMe
3

ShowMe
Let Me Help Me

3 5

India SAP CoE, Slide 31

Points To Remember
- Only General Ledger Accounts of Profit/Loss in nature are created as a Cost Element. (Exception to this rule is Balance sheet Assets GL accounts can be created as statistical Cost elements for budgetary control purposes)

- Validation & Substitution features used in finance will have effect in CO Objects derivation & Postings.

- It is important to know the objective behind reporting either in finance or controlling In two comparative reports, all figures from finance may not tally with controlling. If this is by design then we have an answer and if not then this should have been highlighted in the integration testing between these two modules

India SAP CoE, Slide 32

Points To Remember

..Contd

- OB52 Open / Close posting periods. - OB08 Maintain Exchange Rates for foreign Currency Postings

- Field Status Group is another check point for any missing Postings to CO Objects.

- In New GL Accounting (Flexi Ledger), Profit center accounting is part of Finance rather Internal Accounting (Controlling)

- Funds Management / Functional Areas

India SAP CoE, Slide 33