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Introduction to Financial Introduction to Financial Accounting ManagementAccounting Management
EGN 5622 Enterprise Systems Integration EGN 5622 Enterprise Systems IntegrationProfessional MSEMProfessional MSEM
Fall, 2012 Fall, 2012
Introduction to Financial Introduction to Financial Accounting Management Accounting Management
Theories & ConceptsTheories & Concepts
EGN 5622 Enterprise Systems Integration EGN 5622 Enterprise Systems Integration Professional MSEM Professional MSEM
Fall, 2012 Fall, 2012
January 2007 (v1.0)January 2007 (v1.0)
© 2007 by SAP AG. All rights © 2007 by SAP AG. All rights reserved. SAP University Alliance. reserved. SAP University Alliance. The Rushmore Group, LLCThe Rushmore Group, LLC 33
Financial Accounting (FI)Financial Accounting (FI)
Financial accounting is designed to collect transactional data that provides the foundation for preparing a standard portfolio of reports
In general, these reports are, primarily but not exclusively, directed at external parties
Standard reports include:◦Balance Sheet◦Income Statement◦Cash Flows (Statement)
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 44
Target AudienceTarget Audience
InternalExecutivesSenior ManagementAccount managersAdministration StaffEmployees
ExternalLegal AuthoritiesBanksAuditorsShareholdersInsuranceTaxing AuthoritiesMediaFinancial Analysts
January 2007 (v1.0)January 2007 (v1.0)
© 2007 by SAP AG. All rights © 2007 by SAP AG. All rights reserved. SAP University Alliance. reserved. SAP University Alliance. The Rushmore Group, LLCThe Rushmore Group, LLC 55
FI Organizational ObjectsFI Organizational ObjectsRepresent legal and organizational
views of an enterpriseForm a framework to support business
activities in a manner desired by the management
Accurately collect and organize business information
Enable and support business planning and decisions
January 2007 (v1.0)January 2007 (v1.0)
© 2007 by SAP AG. All rights © 2007 by SAP AG. All rights reserved. SAP University Alliance. reserved. SAP University Alliance. The Rushmore Group, LLCThe Rushmore Group, LLC 66
FI Organizational ObjectsFI Organizational ObjectsChart of AccountsGeneral Ledgers (G/L)
◦Customer Accounts and Accounts Receivable (A/R)
◦Vendor Accounts and Accounts Payable (A/P)
January 2007 (v1.0)January 2007 (v1.0)
© 2007 by SAP AG. All rights © 2007 by SAP AG. All rights reserved. SAP University Alliance. reserved. SAP University Alliance. The Rushmore Group, LLCThe Rushmore Group, LLC 77
Chart of AccountsChart of AccountsIt is a classification scheme consisting
of a group of general ledger (G/L) accounts.
It provides a framework for the recording of values to ensure an orderly rendering of accounting data.
It contains the G/L accounts used by one or more company codes.
January 2007 (v1.0)January 2007 (v1.0)
© 2007 by SAP AG. All rights © 2007 by SAP AG. All rights reserved. SAP University Alliance. reserved. SAP University Alliance. The Rushmore Group, LLCThe Rushmore Group, LLC 88
General Ledger (G/L) AccountsGeneral Ledger (G/L) Accounts
General Ledger is a data storage area created with a unique combination of Company Code and Chart of Accounts
General Ledger contains a listing of transactions effecting each account in the Chart of Accounts and the respective account balance
It is used for preparing financial accounting statements
January 2007 (v1.0)January 2007 (v1.0)
© 2007 by SAP AG. All rights © 2007 by SAP AG. All rights reserved. SAP University Alliance. reserved. SAP University Alliance. The Rushmore Group, LLCThe Rushmore Group, LLC 99
General Ledger (G/L) AccountsGeneral Ledger (G/L) Accounts
Each G/L account with a unique account number is designated into a ◦balance sheet account group and ◦profit and loss account group.
The balance in balance sheet accounts is carried forward into the same account.
The balances in profit and loss accounts is carried forward into a different (specified) account: ◦E.G.: a retaining earning account.
January 2007 (v1.0)January 2007 (v1.0)
© 2007 by SAP AG. All rights © 2007 by SAP AG. All rights reserved. SAP University Alliance. reserved. SAP University Alliance. The Rushmore Group, LLCThe Rushmore Group, LLC 1010
Subsidiary Ledgers (Sub-ledgers) Subsidiary Ledgers (Sub-ledgers) and Reconciliation Accountsand Reconciliation Accounts
Sub-Ledgers: Some financial data are not directly maintained in the general ledger. For example, customers accounts, which track the amounts customers owe and payments they paid, are maintained separately for each customer. Similarly, data about each vendor are maintained in separate accounts. Such accounts are called sub-ledgers, and don’t show up in the general ledger.
January 2007 (v1.0)January 2007 (v1.0)
© 2007 by SAP AG. All rights © 2007 by SAP AG. All rights reserved. SAP University Alliance. reserved. SAP University Alliance. The Rushmore Group, LLCThe Rushmore Group, LLC 1111
Subsidiary Ledgers (Sub-ledgers) Subsidiary Ledgers (Sub-ledgers) and Reconciliation Accountsand Reconciliation Accounts Reconciliation accounts: part of general ledger
accounts that consolidate data from a group of related sub-ledger accounts, such as customers and vendors.
The reconciliation account for customers is accounts receivable.
The reconciliation account for vendors is accounts payable.
Transaction data must first be posted to a sub-ledger account, and automatically posted to its corresponding reconciliation account.
January 2007 (v1.0)January 2007 (v1.0)
© 2007 by SAP AG. All rights © 2007 by SAP AG. All rights reserved. SAP University Alliance. reserved. SAP University Alliance. The Rushmore Group, LLCThe Rushmore Group, LLC 1212
Subsidiary Ledgers (Sub-ledgers) Subsidiary Ledgers (Sub-ledgers) and Reconciliation Accountsand Reconciliation AccountsThe balance in the reconciliation account
(e.g., accounts receivable or accounts payable) is the sum of the postings in the related sub-ledger accounts (for example, customers and vendors, respectively).
January 2007 (v1.0)January 2007 (v1.0)
© 2007 by SAP AG. All rights © 2007 by SAP AG. All rights reserved. SAP University Alliance. reserved. SAP University Alliance. The Rushmore Group, LLCThe Rushmore Group, LLC 1313
Customer and Vendor AccountsCustomer and Vendor AccountsCustomer and Vendor Account
balances are usually maintained in FI through integrated accounts receivable and accounts payable (sub-modules)
Financial postings for Customers and Vendors are made directly to their respective individual accounts and concurrently to the General Ledger
January 2007 (v1.0)January 2007 (v1.0)
© 2007 by SAP AG. All rights © 2007 by SAP AG. All rights reserved. SAP University Alliance. reserved. SAP University Alliance. The Rushmore Group, LLCThe Rushmore Group, LLC 1414
Customer AccountsCustomer AccountsAccounts Receivable Sub-Module
◦Information with respect to customers who purchase the enterprise’s goods and services such as sales and payments made
◦The integration between Sales and Distribution (SD) and FI is important, so that the billings in the SD will generate FI journal entries for sales activity
January 2007 (v1.0)January 2007 (v1.0)
© 2007 by SAP AG. All rights © 2007 by SAP AG. All rights reserved. SAP University Alliance. reserved. SAP University Alliance. The Rushmore Group, LLCThe Rushmore Group, LLC 1515
Customer AccountsCustomer Accounts
Accounts Receivable(General Ledger)
950
300
Customer 142
150
Customer 123
400
Customer 135
100
Customer 189
January 2008January 2008
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Accounts Receivable IntegrationAccounts Receivable Integration
FIFinancial
Accounting
FIFinancial
Accounting
FIFinancial
Accounting
FIFinancial
Accounting
MMMaterials
Mgmt.
MMMaterials
Mgmt.
RevenueIncrease to A/R
GoodsIssue
SalesOrderInvoce
Income StatementBalance Sheet
FIFinancial
Accounting
FIFinancial
Accounting
COGSDecrease to Inventory
SDSales and Distribution
January 2007 (v1.0)January 2007 (v1.0)
© 2007 by SAP AG. All rights © 2007 by SAP AG. All rights reserved. SAP University Alliance. reserved. SAP University Alliance. The Rushmore Group, LLCThe Rushmore Group, LLC 1717
Vendor AccountsVendor AccountsAccounts Payable Sub-Module
◦Information with respect to Vendors from whom the enterprise purchases goods and services such as purchases and payments made
◦The Materials Management (MM) and FI are integrated in SAP, such that the activity of purchase and goods receipt in MM will generate an FI journal entry.
January 2007 (v1.0)January 2007 (v1.0)
© 2007 by SAP AG. All rights © 2007 by SAP AG. All rights reserved. SAP University Alliance. reserved. SAP University Alliance. The Rushmore Group, LLCThe Rushmore Group, LLC 1818
Vendor AccountsVendor Accounts
Accounts Payable(General Ledger)
850
250
Vendor 100435
200
Vendor 100234
100
Vendor 100621
300
Vendor 100846
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 1919
Accounts Payable IntegrationAccounts Payable Integration
MMMaterials
Mgmt.
MMMaterials
Mgmt.
FIFinancial
Accounting
FIFinancial
Accounting
FIFinancial
Accounting
FIFinancial
Accounting
Increase to A/PDecrease to GR/IR
GoodsReceipt
Balance Sheet
FIFinancial
Accounting
FIFinancial
Accounting
Increase to InventoryIncrease to GR/IR
InvoiceReceipt
MMMaterials
Mgmt.
MMMaterials
Mgmt.
January 2007 (v1.0)January 2007 (v1.0)
© 2007 by SAP AG. All rights © 2007 by SAP AG. All rights reserved. SAP University Alliance. reserved. SAP University Alliance. The Rushmore Group, LLCThe Rushmore Group, LLC 2020
Accountants and Audit TrailsAccountants and Audit TrailsAudit trails allow an auditor to begin with
an account balance on a financial statement and trace through the accounting records to the transactions that support the account balance
Audit trails enable an auditor to trace individual transactions to the effected account balance(s) on a financial statement
Introduction to Financial Introduction to Financial Accounts ManagementAccounts Management
SAP Implementation SAP Implementation
EGN 5622 Enterprise Systems Integration EGN 5622 Enterprise Systems Integration Professional MSEM Professional MSEM
Fall, 2012Fall, 2012
R/3
SAP Module ViewSAP Module View
Integrated SolutionClient / Server
Open Systems
FinancialAccounting
Controlling
Fixed AssetsMgmt.
ProjectSystem
Workflow
IndustrySolutions
ProductionPlanning
Sales &Distribution
MaterialsMgmt.
PlantManagement
QualityMaintenance
Human Resources
January 2008January 2008
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Components of Financial Components of Financial AccountingAccounting
Financial Accounting
(FI)
AccountsReceivable
AccountsPayable
SpecialPurposeLedger
FixedAssets
Banks
GeneralLedger
Business Processes IntegrationBusiness Processes Integration
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 2424
MM
PP
SD
Org
Dat
a
Rules
MM
PP
SD
Master D
ata
MM
PP
SD
FI SDMM
FI
FI
FI
PP
January 2008January 2008
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Business Processes IntegrationBusiness Processes Integration
◦Financial Accounting (FI)◦Materials Management (MM)◦Sales and Distribution (SD)◦Production Planning (PP)
January 2008January 2008
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Financial Accounting ModuleFinancial Accounting Module
Organization DataMaster dataRulesTransaction Data
Financial Accounting ModuleFinancial Accounting Module
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 2727
Org
Dat
a
Rules
Master D
ataFI
FI FI
FI
Financial Accounting ModuleFinancial Accounting Module
January 2008January 2008
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Org
Dat
a
FI
FI
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 2929
Organizational Data (review)Organizational Data (review)
A hierarchy in which the organizational units in an enterprise are arranged according to functions and tasks
Are static data and are rarely changed Once the organizational structure is decided, it is not easy to
change it
The definition of organization units is a fundamental step; it is a critical factor in how the company will be structured
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 3030
Organization Structures (Review)Organization Structures (Review)
◦Client◦Company ◦Company code◦Chart of accounts◦Fiscal year variant◦Credit control area
January 2008January 2008
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Client
CompanyChart ofAccounts
CompanyCode
Fiscal YearVariant
Credit ControlArea
Organizational Structure forFinancial Accounting
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 3232
Business AreasBusiness Areas
Business AreasA unit in an enterprise that groups product and
market combinations as homogeneously as possible for the purpose of developing unified business policy.
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 3333
Client
GeneralMotors
GM Corp. Chart of Accts
GMC CadillacChevrolet
CorporateFiscal Year Var.
GM–CorporateCredit CA
Cars Cars
Trucks Trucks Trucks
Business Areas
Consolidation of Company Codes
Optional Organizational Structures
Financial Accounting ModuleFinancial Accounting Module
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 3434
Master D
ataFI
FI
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All The Rushmore Group, LLC 2007. All rights reserved.rights reserved. 3535
Master Data
Financial Accounting• General Ledger
Accounts• Material Master• Vendor Master• Customer Master
Material Management• Vendor Master• Material Master• Customer /
Purchasing Info Records
Sales & Distribution• Customer Master• Material Master• Pricing• Credit Limits • Customer Material
Info Records• Item Proposal
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 3636
FI Master DataFI Master Data
General Ledger Master Data◦Chart of Accounts Data◦Company Code Data◦Reconciliation Accounts
Accounts Receivable Accounts Payable Goods Receipt/Invoice Receipt
General Ledger Account Balances
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 3737
General Ledger – Master DataGeneral Ledger – Master Data
General Ledger accounts are created at the client level
A unique master record is created for each General Ledger account
Business transactions are posted to the portfolio of General Ledger accounts made available to a company through the assignment of a specific Chart of Accounts
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 3838
General Ledger – Master Data General Ledger – Master Data (continued)(continued)
Contains control information for:◦ Data entry◦ Data processing
Specifies what is in:◦ The balance sheet, and ◦ The income statement
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 3939
General LedgerGeneral LedgerOrganization of the DataOrganization of the Data
G/L master account contains◦one or more Chart of Accounts specific
information areas◦one or more Company Code specific information
areasSo that it can be shared by several
combinations of Charts of Accounts and Company Codes
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 4040
100101
CPEN
X
BS
Account numberChart of accounts
Account groupP&L statement acct type Balance sheet account
General LedgerGeneral LedgerChart of Accounts DataChart of Accounts Data
Account numberName of the Chart of
AccountsAccount group which
provides information to control the creation of the master record for a company code
January 2008January 2008
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General LedgerGeneral LedgerCompany Code DataCompany Code Data
Local currencyForeign currencyTax categoryOpen item managementLine item displaySort key
January 2008January 2008
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General LedgerGeneral LedgerCompany Code Data (continued)Company Code Data (continued)
Local currency◦Specify the currency in which the account is to
be posted◦Transaction figures are always updated and
displayed in local currency
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 4343
General LedgerGeneral LedgerCompany Code Data (continued)Company Code Data (continued)
Foreign currency◦Specify the alternative currency in which the
account is to be posted◦It is possible to select up to two alternative
currencies◦Transaction figures will be updated in both the
local and alternative currencies
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 4444
General LedgerGeneral LedgerCompany Code Data (continued)Company Code Data (continued)
Tax category◦Specify the type of tax on purchase and sales
(input or output taxes) that can be posted to the account
◦If the account is not tax relevant, do not make a specification in this field
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 4545
General LedgerGeneral LedgerCompany Code Data (continued)Company Code Data (continued)
• Open item management• It implies that the account is subjected to an
affirmative clearing process involving the matching of debits to credits with the purpose of closing each individual line item
• Used in A/P and A/R • We can clear (archive) an accounting document
only when all of its individual line items have been cleared.
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 4646
General LedgerGeneral LedgerCompany Code Data (continued)Company Code Data (continued)
Sort Key◦Determines the data field that will be used to
sort the line items Posting date Document date Cost center
◦Necessary when line item display is selected
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 4747
General LedgerGeneral LedgerCompany Code Data (continued)Company Code Data (continued)
Reconciliation accounts◦While posting to a sub-ledger, the system
automates concurrently the posting to the corresponding reconciliation account in the general ledger
◦Such that the general ledger is automatically updated and always remains in balance with the individual account totals
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 4848
Subsidiary Ledger Accounts
A/R, A/P, GR/IR
General Ledger Reconciliation AccountsA/R, A/P, GR/IR
General LedgerGeneral LedgerCompany Code Data (continued)Company Code Data (continued)
Debit Credit
Debit Credit
A/P
Debit Credit
A/R
Debit Credit
GR/IR
$$ $$
$$ $$$$ $$$$ $$
GeneralLedger
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 4949
Line Item DisplayLine Item Display
Account number 100999 Bank AccountCompany code C999
Period Debit Credit DC bal. Balance C/f bal. 750,000.00 Period 1 5,250.00 3,540.00 1,710.00 751,710.00 Period 2 25,000.00 15,000.00 10,000.00 761,710.00
Period 1Doc. no. DT Doc.date Currency Amount 1500000013 KZ 01/05/04 USD 1,800.00 -1500000014 KZ 01/06/04 USD 990.00 -100000012 SA 01/08/04 USD 750.00 –1400000342 DZ 01/14/04 USD 5,250.00
Financial Accounting ModuleFinancial Accounting Module
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 5050
Rules
FI
FI
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 5151
RulesRules
Defines the parameters for Master Data and Transactions
Determines functionality for Master Data and Transactions
Relatively fixedChanges as policy changes
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All The Rushmore Group, LLC 2007. All rights reserved.rights reserved. 5252
RulesRulesAccount Groups
BS – Balance Sheet Account Group PL – Income Statement Account Group RA – Reconciliation Account Group
Field status variant◦Field status groups
Automatic Account AssignmentsPosting PeriodsTolerance Groups for Account PostingsAccounts Payable Settlement
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All The Rushmore Group, LLC 2007. All rights reserved.rights reserved. 5353
RulesRules
Financial Accounting• Account Groups • Field Status Variant• Fiscal / Posting
Periods• Tolerance Groups• Document Types• Number Ranges• Automatic Account
Assignment• Valuation Area
Grouping• Parameter IDs
Material Management• Fiscal Periods• Account Groups• Material Types• Plant Parameters• Purc./Rec./Inv.
Tolerances • Automatic
Account Assignment
• Reservations• Material Group• Loading Group
Sales & Distribution• Account Groups• Pricing Procedure
Determination• Shipping Point
Determination• Revenue Account
Determination• Define Availability
Check• Define Credit
Check• Document Types
January 2008January 2008© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. reserved. 5454
Account Groups
Chrt/accts Acct group Description From To CHRT BS Balance Sheet 100000 399999 CHRT PL Income Sheet 400000 999999 CHRT RA Reconciliation 110000 310000
January 2008January 2008
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Account GroupsAccount GroupsControl which fields must be entered when
an account is createdDetermine a valid number interval for each
of the groups (types) of General Ledger accounts that have common attributes
Must be created before General Ledger Chart of Accounts master records can be created
You must assign each account to an appropriate account group
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 5656
Account control Suppress Req. entry Opt. entry Display
CurrencyTax categoryReconciliation account…
Account Group BS
Account controlAccount managementDocument entryBank/financial detailsInterest calculationJoint venture
Account Groups
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 5757
Field StatusField StatusField status controls how the data will be
entered for a field when an accounting master record is being used in a transaction
Determining whether a field is required, optional, suppressed, or display only
Field status controls are also relevant to a specific activity — create, change, or display
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 5858
Field Status VariantField Status Variant
Fld status group TextZALL All Accounts
ZBSA Balance Sheet Accounts ZEXP Expense Accounts ZGRI Material Management (GR/IR) Accounts ZRCN Reconciliation Accounts ZREV Revenue Accounts
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 5959
Automatically posted to Automatically posted to Reconciliation AccountReconciliation Account
Postings to sub-ledgers (such as accounts receivable or accounts payable) are automatically concurrently posted to the corresponding reconciliation account in the General Ledger
In this way, the General Ledger is automatically updated and remains in balance with the customer and vendor individual account totals
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 6060
Posting PeriodsPosting PeriodsBefore it is possible to post documents, it is
necessary to define posting periodsEach fiscal year is divided into one or more
posting periodsEach posting period is delimited by both a
start and finish dateA common division of a fiscal year involves
defining 16 posting periods◦12 months and 4 quarter ending posting periods
January 2008January 2008
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Tolerances Groups forTolerances Groups forAccount PostingsAccount PostingsInternal control – amount limits that define
the maximum authorization levels for your employees◦Must be at least one entry for every company
code◦Can be defined for an employee group with
employees being assigned to a given group to effect the control
◦Can be undefined at the group level meaning that the control is effective for everyone who is not a member of a group
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 6262
Tolerances Groups forTolerances Groups forAccount Postings (continued)Account Postings (continued)Internal control – amount limits that
define the maximum authorization levels for your employees with respect to: ◦A single transaction ◦A customer or vendor account line item ◦Discount percentage granted to a line item ◦Payment differences that can be accepted in
settlement of an account (e.g., accounts payable)
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 6363
Accounts Payable SettlementAccounts Payable Settlement
PurchaseOrder
GoodsReceipt
InvoiceReceipt
Debit Credit
PaymentProgram
Verification
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 6464
Accounts Payable Settlement Accounts Payable Settlement (continued)(continued)
Select payment method and bankSelect items for paymentCalculate the payment amount, taking
account of cash discount periodsPost the payment documentPrint payment medium
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 6565
Accounts Payable Settlement Accounts Payable Settlement ProcessProcess
Determines:◦Open items to be paid◦When they will be paid◦Bank from which payment will be made◦Payment medium◦Who will get paid
Payment process creates a financial accounting document to record the transaction
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 6666
Document NumbersDocument NumbersAll posted transactions must have a
unique number assigned to itUsually these numbers are system
generatedThe numbers specifically identify the
business content of a transaction so that it may be recalled at a later time
The actual document number stored in the system includes information respecting the year, date, and company codes
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 6767
Document Numbers – (continued)Document Numbers – (continued)
Before a document can be posted to a company or company code, a number range must be assigned to each document type
New transaction document number ranges must be created at the start of each new fiscal year
Financial Accounting ModuleFinancial Accounting Module
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 6868
FI
January 2008January 2008© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. reserved. 6969
Integration
Procurement Process (Procure-to-Pay)
Purchase Requisition
Paymentto Vendor
Notify Vendor
VendorShipment
InvoiceReceipt
GoodsReceipt
Purchase Order
January 2008January 2008
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Sales Order Process(Order-to-Cash)
Integration
Sales OrderEntry
Post Goods Issue
Invoice Customer
Pick Materials
Receipt ofCustomer Payment
Pack Materials
Check Availability
January 2008January 2008
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Scheduleand Release
Shop FloorDocuments
Goods Receipt
Order Settlement
GoodsIssue
ProductionProposal
(Planning/Other)
CompletionConfirmation
Capacity Planning
Production Process (Make-to-Stock)
January 2008January 2008
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Transaction DataTransaction DataEach transaction is unique Transactions use organizational structure,
master data, and rules It includes the business activity of the
transaction
January 2008January 2008
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Transaction OverviewTransaction Overview
Account Payable ProcessAccount Receivable Process
January 2008January 2008
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Accounts Payable Settlement Accounts Payable Settlement ProcessProcess
Determines:◦Open items to be paid◦When they will be paid◦Bank from which payment will be made◦Payment medium◦Who will get paid
Payment process creates a financial accounting document to record the transaction
January 2008January 2008
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Goods ReceiptGoods Receipt / Invoice Receipt / Invoice ReceiptReconciliation AccountReconciliation Account
Purchase requisition
Purchase orderMaterials Management (MM) and Financial Accounting (FI)via automatic account assignment
Goods receipt
No impact onFinancial Accounting (FI)
Dr Cr
Inventory
$100
Dr Cr
GR / IR
$100
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 7676
Goods Receipt / Goods Receipt / Invoice ReceiptInvoice ReceiptReconciliation AccountReconciliation Account
Amount owed isassigned and transferred tovendor account payable
Invoice receipt
Dr Cr
Vendor (sub-ledger)
$100
Dr Cr
GR / IR
$100
Dr Cr
A/P
$100
January 2008January 2008
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Vendor PaymentVendor Payment
Amount owed is paid tovendor and account payable is reduced
Bank
Dr CrA/P
$100
Dr Cr
Bank
$100
Vendor (sub-ledger) Dr Cr
$100
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 7878
(FI – MM) Integration Points(FI – MM) Integration Points
Invoice Receipt
Payment Program
Goods Receipt
(Vendor)
Dr Cr
GR / IR
$100
BankDr Cr
Inventory
$100 $100 $100
Dr CrDr Cr
$100 $100
APDr Cr
$100 $100
January 2008January 2008
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Accounts Receivable Settlement Accounts Receivable Settlement ProcessProcess
Determines:◦Open items to be collected◦When they will be collected◦Bank to which payment will be received◦Payment medium◦Who is the customer
Collection of payment process creates a financial accounting document to record the transaction
Goods IssuingGoods IssuingReconciliation AccountReconciliation Account
Sales quotation
Sales order
Materials Management (MM) and Financial Accounting (FI)
Delivery/Goods Issuing
No impact onFinancial Accounting (FI)
Dr Cr
Inventory (Trading, F/G)
$1,000
Dr Cr
COGS
$1,000
Dr Cr
Sales Revenues
$1,250
Billing Billing Reconciliation AccountReconciliation Account
Billing amount isassigned and transferred to
customer account receivableBilling
Dr Cr
Account Receivable (AR)
$1,250
Dr Cr
Customer (sub-ledger)
$1,250
Customer PaymentCustomer PaymentAmount is paid by
Customer and account receivable is reduced
Bank
Dr Cr
Account Receivable (A/R)
$1,250
Dr Cr
Bank
$1,250
Customer (sub-ledger)
Dr Cr
$1,250
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 8383
(FI – SD) Integration Points(FI – SD) Integration Points
Billing Payment Program
Goods Issue
(Customer)
Dr Cr
COGS
$1,000
BankDr Cr
Inventory (F/G)
$1,000
$1,250
$1,250
Dr CrDr Cr
$1,250 $1,250
ARDr Cr
$1,250 $1,250
Dr Cr
Revenue
Exercises:Exercises:FI 4A: Post Transfer of funds to Bank AccountMM6: Create a new vendorMM7: Create material master for trading goodsMM8: Display Stock/Requirements listMM9: Create a purchase requisitionMM10: Display stock/requirements listMM11: Create request for quotation for your requisitionMM12: Maintain quotation from vendorsMM13: Evaluation quotations on priceMM14: Rejecting quotationsMM15: Create a purchase order referencing an RFQMM16: Create a goods receipt for the purchase orderMM17: Verify the purchase receipt of goods MM18: Create an invoice receipt from vendorMM19: Display purchase order history
Exercises:Exercises:MM20: Create a goods receipt for purchase orderMM21: Create an invoice receipt from vendorMM22: Post payment to vendorMM23: Display vendor line itemsMM24: Display and review general ledger account balances and
individual line items