Wednesday, June 11, 2008

SAP FICO FREE STUDY MATERIAL FROM F2F INFOWARE,  BANGALORE 
Finance 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.

st="on"style=""Enterprise  structure: A portrayal of an enterprise's hierarchy. Logical
enterprise structure, including the organizational units required to manage the SAP System such as plant or cost center.

Social enterprise structure, description of the way in which an enterprise is organized, in divisions or user departments.The HR application component portrays the social structure of an enterprise fiscal year variant:  A variant defining the relationship between the calendar and fiscal year. The fiscal year variant specifies the number of periods and special periods in a fiscal year and how the SAP System is to determine the assigned posting periods. Fiscal Year:  A period of usually 12 months, for which the company produces financial statements and takes inventory. Annual displacement/Year shift:  For the individual posting periods various entries may be necessary. For example, in the first six periods the fiscal year and calendar year may coincide, whereas for the remaining periods there may be a displacement of +1. Chart of Accounts:  Systematically organized list of all the G/L account master records that are required in a company codes. The COA contains the account number, the account name and control information for G/L account master record. Financial statement version: A hierarchical positioning of G/L accounts. This positioning can be based on specific legal requirements for creating financial statements. It can also be a selfdefined order. Account group:  An object that attributes that determine the creation of master records. The account group determines: The data that is relevant for the master record A number range from which numbers are selected for the master records. Field status group:  Field status groups control the additional account assignments and other fields that can be posted at the line item level for a G/L account. Posting Key: A two-digit numerical key that determines the way line items are posted. This key determines several factors including the:  Account type, Type of posting (debit or credit),Layout of entry screens . Open item management:  A stipulation that the items in an account must be used to clear other line items in the same account. Items must balance out to zero before they can be cleared. The account balance is therefore always equal to the sum of the open items. Clearing:  A procedure by which the open items belonging to one or more accounts are indicated as cleared (paid). Reconciliation account:  A G/L account, to which transactions in the subsidiary ledgers (such as in the customer, vendor or assets areas) are updated automatically.

  Special G/L transaction: The special transactions in accounts receivable and accounts payable that are shown separately in the general ledger and sub-ledger. They include:  Bills of exchange  Down payments  Guarantees House Bank:  A business partner that represents a bank through which you can process your own internal transactions. Dunning key: A tool that identifies items to be dunned separately. The document type determines where the document is stored as well as the account types to be posted. Noted item:  A special item that does not affect any account balance. For each procedure. Year-end closing: An annual balance sheet and profit and loss statement. accruals. Standard accounting principles require that the following be listed:  All assets  All debts. Account type: A key that specifies the accounting area to which an account belongs. When you post a noted . such as items you are not sure about or items for which payment information exists. both of which must be created in accordance with the legal requirements of the country in question. Examples of account types are:     Asset accounts Customer accounts Vendor accounts G/L accounts Dunning procedure: A pre-defined procedure specifying how customers or vendors are dunned. the user defines     Number of dunning levels Dunning frequency Amount limits Texts for the dunning notices Dunning level: A numeral indicating how often an item or an account has been dunned. Document type:  A key that distinguishes the business transactions to be posted.   Functional area: An organizational unit in Accounting that classifies the expenses of an organization by functions such as:      Administration Sales and distribution Marketing Production Research and development Classification takes place to meet the needs of cost-of-sales accounting.Special G/L indicator:  An indicator that identifies a special G/L transaction.Special G/L transactions include down payments and bills of exchange. and deferrals  All revenue and expenses Month-end closing: The work that is performed at the end of a posting period.

item. or management accounting values). received guarantees of payment).  Deferral Deferred income is any receipts before the closing key date that represent revenue for any period after this date. Statistical postings create statistical line items only. The item can be displayed using the line item display. Certain noted items are processed by the payment program or dunning program . Several company codes can work with the same chart of depreciation. for interest and for the cutoff value  Various control parameters Period control method: A system object that controls what assumptions the system makes when revaluating asset transactions that are posted partway through a period. a document is generated. balance sheets for tax purposes. Accrual and deferral: The assignment of an organization's receipts and expenditure to particular periods.The chart of depreciation and the chart of accounts are completely independent of one another. Valuation area: An organizational unit in Logistics subdividing an enterprise for the purpose of uniform and complete valuation of material stocks. . for example:      Assets under construction Low-value assets Leased assets Financial assets Technical assets Depreciation area: An area showing the valuation of a fixed asset for a particular purpose (for example. down payment requests. Each company code is allocated to one chart of depreciation. control parameters and default values can be defined for depreciation calculation and other master data. Special asset classes are. for purposes of calculating the net income for a specific period. Statistical posting:  The posting of a special G/L transaction where the offsetting entry is made to a specified clearing account automatically (for example. The depreciation key controls the following for each asset and for each depreciation area:  Automatic calculation of planned depreciation  Automatic calculation of interest  Maximum percentages for manual depreciation The depreciation key is defined by specifying:  Calculation methods for ordinary and special depreciation.It also contains the rules for the evaluation of assets that are valid in a specific country or economic area. Chart of depreciation: An object that contains the defined depreciation areas. Depreciation key: A key for calculating depreciation amounts. A distinction is made between:  Accruals An accrual is any expenditure before the closing key date that represents an expense for any period after this date.for example. Each asset master record must be assigned to one asset class. For each asset class. for individual financial statements. Asset class: The main criterion for classifying fixed assets according to legal and management requirements.

an item in the profit and loss statement from the Financial Information System (FIS) can be examined in the reconciliation ledger reports with respect to the relevant costs. functional area. A cost element corresponds to a cost-relevant item in the chart of accounts. They are used only in Controlling and consequently cannot be defined in FI as an account.  It can identify and display value flows in Controlling across company code."  Controlling Controlling Area: An organizational unit within a company. used to represent a closed system for cost accounting purposes. For more detailed analysis. The period control method allows different sets of rules for different types of asset transactions. acquisitions and transfers. . The reconciliation ledger has the following functions:  Reconciles Controlling with Financial Accounting: The reconciliation ledger provides reports for monitoring the reconciliation of Controlling with Financial Accounting by account. These company codes must use the same operative chart of accounts. or business area boundaries  Provides an overview of all costs incurred : Reconciliation ledger reports provide an overview of the costs and are therefore a useful starting point for cost analysis. Secondary cost elements do not correspond to any G/L account in Financial Accounting. for example. Primary cost element: A cost element whose costs originate outside of CO and accrual costs that are used only for controlling purposes Secondary cost element:  A cost element that is used to allocate costs for internal activities. reports from other components within Controlling can be accessed from the reconciliation ledger reports. for example. Cost center std Hierarchy :  Indicated hierarchy of cost center groups in which all cost centers in a controlling area are gathered together."  style="text-decoration: none. The following base values are possible. you can instruct the system only to start revaluating asset acquisitions in the first full month after their acquisition. Cost element :  A cost element classifies the organization's valuated consumption of production factors within a controlling area."  style="text-decoration: none. Cost element category: The classification of cost elements according to their usage or origin. A controlling area may include single or multiple company codes that may use different currencies. Examples of cost element categories are:  Material cost elements  Settlement cost elements for orders Cost elements for allocating internal activities   Reconciliation ledger: A ledger used for summarized display of values that appear in more detailed form in the transaction data.Using the period control method. Depreciation base: The base value for calculating periodic depreciation. For example. for example:  Acquisition and production costs  Net book value  Replacement value style="text-decoration: none.

The following methods are available:  Transaction-based reposting Each posting is made in real time during the current period. . The allocation cost element is the central characteristic used in all CO postings. Allocation cost element :  A cost element used to illustrate activity allocation in terms of values.Production cost center  H .Service cost center Controlling area: An organizational unit within a company. These company codes must use the same operative chart of accounts.     Reposting: A posting aid in which primary costs are posted to a receiver object under the original cost element (the cost element of the sender object). The definition can be based on:  Functional requirements  Allocation criteria  Physical location  Responsibility for costs Cost center category: An attribute that determines the type of cost center. Example  F .Fixed values are carried forward from the current posting period to all subsequent periods. under which the activity type or business process is allocated. Repostings are used to rectify incorrect postings.st="on"style=""Cost  Center: An organizational unit within a controlling area that represents a defined location of cost incurrence. A controlling area may include single or multiple company codes that may use different currencies. used to represent a closed system for cost accounting purposes. Example Activity types in production cost centers are machine hours or finished units.  Total value Totals values are posted in the current posting period only Activity type: A unit in a controlling area that classifies the activities performed in a cost center. Assessment cost element: A secondary cost element for costs that are assessed between Controlling objects. It is therefore also an important criterion for reporting . All internal allocations refer exclusively to objects in the same controlling area.for example. Statistical key figure: The statistical values describing:     Cost centers Orders Business processes Profit centers There are the following types of statistical key figures:  Fixed value . many reports are structured according to the posted cost elements. The allocation cost element is a secondary cost element .

Monitor period-based accrual between expenses posted in Financial Accounting and accrual costs in Controlling. Depending on the system setting. in some instances. The credit on the cafeteria cost center and the debit of the two receiver cost centers are posted using an assessment cost element.  The original cost element is retained in the receiver cost center.  Investment orders . Example: The costs from the cafeteria cost center could be assessed based on the statistical key figure "employee".Monitor the costs and revenues arising from activities for partners outside the organization. which was set up on the receiver cost center. The same order type can be used in all controlling areas in one client.  Orders with revenues . Distribution: A business transaction that allocates primary costs. enabling continous cost control in the enterprise. Periodic reposting Produces the same results as transaction-based reposting. Receiver cost center I has 10 employees. Example     Production orders Maintenance orders Capital investment orders Marketing orders . receiver cost center II has 90. They can also be used for continuous monitoring of subareas of indirect costs. The costs being transferred are collected on a clearing cost center and then transferred at the end of the period according to allocation bases defined by the user. the revenues of an organization. The SAP System supports the following:  Hierarchical method (where the user determines the assessment sequence)  Iterative method (where the SAP System determines the sequence of assessment using iteration). Order type: A tool that categorizes orders according to purpose. The costs of the cafeteria cost center would be transferred (assessed) to receiver cost center I (10%) and receiver cost center II (90%). Assessment:  A method of internal cost allocation by which you allocate the costs of a sender cost center to receiver CO objects (such as orders and other cost centers) using an assessment cost element.For short-term monitoring of the indirect costs arising from jobs. or from activities not belonging to the core business of the organization.  Information about the sender and the receiver is documented in the Controlling document. The order type contains information which is necessary for managing orders.  Accrual orders . Order types are client-specific.Monitor investment costs that can be capitalized and settled to fixed assets. Internal orders can be used for the following purposes:  Monitoring the costs of short-term jobs  Monitoring the costs and revenues of a specific service  Ongoing cost control Internal orders are divided into the following categories:  Overhead orders . Overhead orders can collect plan and actual costs independently of organizational cost center structures and business processes. the total costs or some of the costs for the cafeteria cost center would be Internal order:  An instrument used to monitor costs and.

. It represents the economic outflow of resources. Cost of sales accounting: A type of profit and loss statement that matches the sales revenues to the costs or expenses involved in making the revenue (cost of sales). The expenses are listed in functional areas such as:     Manufacturing Management Sales and distribution Research and development Cost of sales accounting displays how the costs were incurred.

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