ROHINEESH R.BHARDWAJs3903852 Page 1
This study determine about the main two functionality of Accounting i.e. Financial andManagerial Accounting, and how this two activities take place in SAP software.Financial and Managerial accounting have many different activities related to SAPsoftware. I have also mentioned some of these activities
I have tried my level best tomake this paper effective so that it covers all the important part of the given study.
In this case study I have explained the Financial and Managerial Accounting and itsdifferent activities that are used in SAP ERP.The important part of this study is SOX act i.e.
Sarbane-Oxley Act. This act makes thechanges in the current SAP software. I have tried to describe this change with the helpof some case studies, article and research available in the Google. As we all know thereare many stories related with SAP ERP failure and about its success, I have searchedthose company and mention their stories in this paper.
Classification of Financial and Management Accounting throw theiractivities and diagram:
If we want to understand the Financial Accounting then we have to understand its flowin the organization, that how financial accounting leads the financial part of theorganization. We have to understand the fact that financial accounting measures moneyas an economic performance but not as a factor of production
.As I said above that to understand the financial accounting we have to understand itsflow, because financial accounting has its own flow to drive its features in theorganization. So the financial accounting include all the In and Out flows of transactionthat take place in the organization. The main task of the financial accounting is toinclude all controls of money in the organization as revenues, expenses, liabilities andassets.
Now here the question arise that what financial accounting gives us?
And how it’s beneficial to us?
So with reference this question I want to said that financial accounting collects and thensummarizes all the financial transaction that take place in the whole year, and preparethe financial report of the organization such as balance sheet which every companyrelease in the fiscal year and also lenders, tax authorities, investors and otherstakeholders
Here is the flow or we can say the cycle of financial accounting from which wewill able to understand the work or flow of the financial accounting (fig.1.0)