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Introduction

 SAP is abrivated as Systems, Applications & Products.

 SAP is a ERP software in data processing.
 ERP is abrivated as Enterprise Resorce Planning.
 An enterprise can be defined as the a business entity with n number of businesses and
carry various business processes.
 SAP is been invented by 5 german engineers in 1972. They were working at IBM.
 SAP is a integrated software which means a collection of different modules which serve
different business purposes and all these modules are integrated for the ease of the company
processes and its functions.
 SAP runs with two different systems R\2 System, R/3 System.
 R/2 is a 2 tired mainframe architecture.
 R/3 is a 3 tired client\server version of software.
 There are several releases in R/3,Ranging from 2.x to 4.x. The vesion we use now is 4.6.
 There are various modules integrated in SAP which include- ABAP, FICO, BASIS, MM,
SD, TR-TM, Asset Mgmt, Investment Mgmt, Logistics etc..
 FI-CO module is abbrevated as Financial Accounting & Controling.
 The FI-CO module include

Preparing public accounts for the company which focuses on the generation of
financial documents such as profit and loss statement andthe balance sheet( focuses on the
legal requirements for companies that might incur tax liabilities when using borrowed
money & these documents also helps to know the financial status of the company.)

Planning & Controlling of comany's future and making strategic plans for future based
on th current perfrmance of the company aswell controlling the financial parametres
according to the business strategy.

Funding, Investment & Development recognises the importance of having funds

available for planned activities and also maintaining contingency resorces, which can be applied
to anticipate developmets in market oppurtunities based on trends already available.

 ASAP Road Map

1. Project Preparation: The primary focus is to start the project identifying the team
members and developing a high level plan.

2. Business Blue Print: The primary focus is to understand the business goals of the
company and to determine the business requirements.

3. Realisation: The purpose of this phase is to implement all the business

requirements based on the business blue print. You customize the
system step by step in two work packages, baseline and final
configuration.

4. Final Preparation: The purpose of this phase is to complete testing, end user
training, completion of this phase, you will be ready to run your
business in your poductive r/3 system.
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5. Go Live & Support: Transition from a project oriented, pre productive environment to
a sucussfull and live productive operation.

 Various financial applications offer different views of financial position and

performance of a company and allow various control levels.
FI- Financial Accounting
CO- Controlling (Managerial Accounting)
TR- Treasury
IM- Investment Management
EC- Enterprise Controlling
RE- Real Estate
PS- Project system
In this course yo will learn more about FI

3 ORGANISATIONAL UNITS IN R/3 FI (ORGANIZATIONAL STRUCTURE)

The Client: It is the highest level in R/3 system hierarchy. Specifications or data which shall be valid
for all organizational units in all R/3 applications are entered client level. Each client is a self
contained unit which has separate master records and a complete set of tables and data.
Users must enter a client key and have a user master record in the client in order to log on
to the system.
Main FI units:

Company Code: Accompany code represents an independent legal accounting entity. An example
would be a company with in a corporate group.
Business Area: Business areas represent separate areas of operation with in an organization and can
be used across company codes. They are balancing entities which are able to create their own set of
financial statements for internal purposes. The use of business areas is optional.

Consolidated Business Area: The business area which consolidates similar business in different
company codes.

FINANCIAL ACCOUNTING GLOBAL SETTING

Variant Principle :
properties to one or more
The variant principle is a three step method used in R/3 to assign special
R/3 objects.
1. Define the variant,
2. Populate variant with values,
3. Assign the variant to R/3 objects.
The principle is used for field status, Fiscal year, Posting period.

Fiscal year variant:
A variant in the financial year which can either be Jan – Dec or Apr – Mar
is fiscal year variant which is in turn assigned to company code.
FYV consists of defining posting periods and as well special posting
period.
FYV are already pre defined in the system however, we can modify
according to the requirements.
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Master Data Overview

Below we discuss about how the master data in

 G/L Accounts,
 Customer/Vender Accounts,
 Travel Management,
 Bank Master Data,
 Asset Accounting Master

G/L Account Master: G/L Account Master Record Consists of

 Chart of Accounts
 Account Groups
 Reconciliation Accounts

Chart Of Accounts: Chart of Accounts consist of list of different accounts of different countries which
are separated by countries which on a whole group of different countries chart of
accounts make one strategic list of chart of Accounts.

The IDES company codes use the following chart of accounts:

 INT is used by the Company codes 1000, 2000, 2100, 2300, 6000.
 CAUS is used by company codes 3000 and 4000.
 CAFR is used by company code 2200.
 CAJP is used by company code 5000.

Account Groups: In order to manage a large number of G/L accounts better, all the accounts in the
chart of account are separated into groups such as cash, asset, material, p/l etc.

Reconciliation Accounts: Connect subsidiary ledgers with the general ledger in real-time. This means
that a posting to a subsidiary ledger also posts to the corresponding reconciliation account in general
ledger at the same time. The subsidiary ledgers include A/P, A/R, and asset ledgers.

Cost Accounting: The controlling area identifies a self-contained organizational structure for which
costs and revenues can be managed and allocated. It represents a separate unit
of cost accounting.

Master Data in A/P: As with G/L accounts, vendor accounts are made up of two areas:
Vender defined at client level
Postings cannot be made to the account in a company code until company code
–specific settings have been made, such as the agreed terms of payment.
Account Groups for Venders: Venders are again classified into groups such as domestic venders,
foreign venders, one time venders,
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Integration with Material Management: Refer siemens material PG No-154

Master Data in Account Receivable: Account definitions and company code-specific settings.
Account Groups
Same as A/P

Integration with SD: Refer siemens material PG No-166

Credit Management: Credit Control Area (Refer PG-173)

Credit Management Master Data
Credit Control
See topic (Integration with SD) as well as
continuation.

Asset Master Data: Asset Classes

Depreciation Areas

Each asset belongs to a company code and business

area. All postings made for the asset (acquisitions,
retirements, depreciation, etc.) are assigned company
code and business area.

Account Classes: Assets are classified for buildings, Machinery, Business

Equipment which are among standard assets and
assets under construction and low value assets.

Travel Management: Refer PG-184

Master Data in Bank Accounting: PG-189

Document Control: Is part of

 Classify and reconcile R/3 Documents

with the original Documents.
 Influence the fields of the document
header and line.
 Open and close posting periods
 Assign posting authorizations to users
 Post basic FI Documents.
Document Overview:
The document system uses document principle: Postings are
always stored in document form. The document remains as a
complete unit in the system until it is archived

Document types: The two types of documents are the Customer payment where the
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document is created in customer G/L and the vender invoice where
the document is posted in vender G/L. More other document types
are
 Customer invoices (DR)
 Customer Credit Memos(DG)
 Customer Payments(DZ)
 G/L Account Postings (SA)
 Vender invoices(KR)
 Vender Credit Memos (KG)
 Vender Payment (KZ)
 Vender Net invoices and credit memos (KN)
 General Documents
For transfer billing documents from R/3 billing System, the standard
system uses the document types RV: SD Billing Documents and
RE: MM billing Documents.
 The payment program uses the document
type ZP for automatic postings.
Document Number Ranges:

Different types of document number are

>Internal Numbering (Numeric)
>External Numbering(Alpha Numeric)
>Until a fiscal year in the future
>Per Fiscal year in the future
>Per Fiscal yea

Functions of the posting keys: Posting keys have control functions with in the line item.
It defines the document with which account it has to be posted,
Credit or debit & field status of additional details.

For G/L transactions: “ Debit” is posting key 40, “Credit is posting

key 50.
For customer invoices: Debit is posting key 01, “Credit is posting
key 50.
For vender invoices “Credit” is posting key 31, “debit” is posting key
40.

Posting period Variants Posting periods are defined in the fiscal year variant.
To prevent documents from being posted to a wrong
posting periods, certain periods are closed.
>Usually the current posting period is kept open and all
other are closed. At the end of a period it is usually
closed and next period is opened.
Maximum amounts:
Maximum amounts are defined per company code in
tolerance groups. This is also where the processing of
payment differences is controlled.

Assigning Posting authorizations you can assign posting authorizations according to your
company convenience.
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G/L Accounts:

Chart of Accounts: The three steps to create and use chart of accounts are

>Define chart of accounts

>Define components such as language, length, G/L Account
number, Group chart of accounts, status.
>Assign chart of accounts to the company code.

There are three ways of creating Chart of accounts

>Manual> Which is a two step process which include: Chart of account segment and company code
segment or else create both segments simultaneously.

>Copying> Copying an individual account with reference to another GL account/ Copying the entire
Company code segment/ copy the entire chart of account segments.

>Data Transfer> Upload a new chart of accounts from an external system, / egg flat file.

Bank Master Data:

The bank master data constitutes of

>Creating Master Data
>Define your house banks
>Define your accounts banks with in your house banks
>Maintain the link between bank and G/L Accounts.

Create Bank Master Data: Easy asses>FI>Banks>Master Data>Bank Master Record>Create

Define House Bank: IMG: FI>Bank Accounting>Bank Accounts>Define House banks.

Create a G/L Account for the House Bank: IMG>FI>Bank Accounting>Bank Accounts>Define house
banks
Easy Asses>Accounting>FI>G/L>Master
Records>Individual Processing >Centrally.