Glossary of SAP Finance Configuration Terms

GLOSSARY OF SAP
FINANCE
CONFIGURATION
TERMS
A Quick Reference Guide to
SAP Finance Terminology
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REFERENCE Glossary of SAP Finance Configuration Terms
MATERIALS
Term Definition
A unique four-digit alphanumeric code that

identifies a company within SAP Finance. It is
Company Code
used to manage the company's financial
transactions, such as GL, AP, AR, and AA.
A list of all the GL accounts used by a

company to record financial transactions. It
Chart of Accounts defines the structure of GL accounts, such as
account numbers, descriptions, and grouping
of accounts.
A set of rules that determines the start and

end dates of a fiscal year. It is used to
Fiscal Year Variant
manage financial transactions within a
specific fiscal year.
A set of rules that determines the open and

close periods for posting financial
Posting Period Variant
transactions. It is used to control the posting
of financial transactions in a specific period.
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MATERIALS
A set of rules that determines the required

and optional fields for entering financial
Field Status Variant
transactions. It is used to ensure the
completeness and accuracy of financial data.
A set of rules that determines the allowed

differences between financial transactions
Tolerance Group
and the corresponding GL accounts. It is used
to control and manage financial risks.
A set of rules that determines the payment

due date, discounts, and penalties for vendor
Payment Terms
and customer invoices. It is used to manage
cash flow and financial risks.
A classification of fixed assets based on their

nature and function, such as land, buildings,
Asset Class machinery, and vehicles. It is used to manage
the acquisition, depreciation, and disposal of
fixed assets.
A sub-division of an asset that tracks the

depreciation and book value of the asset
Depreciation Area
over time. It is used to manage the
accounting and reporting of fixed assets

MATERIALS
A module used to manage an organization's

financial transactions, including accounts
payable, accounts receivable, general ledger,
Financial Accounting (FI)
and financial statements. It provides a
framework for financial reporting and
analysis.
An account used to record transactions in the

GL. It can be a balance sheet account, such as
G/L Account cash or accounts receivable, or an income
statement account, such as sales revenue or
cost of goods sold.
A two-digit code used to determine the type

of transaction being posted to a GL account.
Posting Key It specifies the debit or credit account and
the transaction type, such as a vendor
invoice or customer payment.
A ledger used to manage a specific type of

transaction, such as accounts payable or
accounts receivable. It provides detailed
Subledger
information on transactions, including
vendor or customer data, invoice details, and
payment information.

MATERIALS
A module used to manage an organization's

financial transactions, including accounts
Financial Accounting payable, accounts receivable, general ledger,
(FI) and financial statements. It provides a
framework for financial reporting and
analysis.
An account used to record transactions in the

GL. It can be a balance sheet account, such as
G/L Account cash or accounts receivable, or an income
statement account, such as sales revenue or
cost of goods sold.
A two-digit code used to determine the type

of transaction being posted to a GL account. It
Posting Key specifies the debit or credit account and the
transaction type, such as a vendor invoice or
customer payment.
A geographical area used for determining the

tax rules and tax rates applied to a
transaction. It includes information such as
Tax Jurisdiction
the country, region, and city. It is used for
calculating and reporting taxes and for
compliance with tax regulations

MATERIALS
A code used to represent different types of

taxes, such as sales tax or value-added tax
Tax Codes (VAT). It is used for tax reporting purposes and
helps in calculating the tax liability of an
organization.
A set of conditions agreed upon by an

organization and its vendors or customers
Payment Terms regarding payment for goods and services. It
includes the payment due date, discount
terms, and late payment penalties.
Information on an organization's bank

accounts, such as account number, bank name,
Bank Master Data
and address. It is used for payment processing
and bank reconciliation purposes.
A bank account used by an organization for

payment processing purposes. It is linked to
House Bank the organization's bank master data and is
used for managing outgoing and incoming
payments.

MATERIALS
A method used for processing payments,

such as checks, wire transfers, or electronic
Payment Method payments. It is selected based on the
payment terms agreed upon with the vendor
or customer.
A program used to generate outgoing

payments, such as vendor payments or
Payment Program employee reimbursements. It is based on
payment terms, payment methods, and bank
information stored in the system.
A program used to manage overdue

customer invoices. It generates dunning
letters, which are reminders to customers
Dunning Program
about outstanding payments. The program
can be customized to include different levels
of severity and payment terms.
A group of fixed assets that share similar

characteristics, such as depreciation
Asset Class methods, useful life, or acquisition date. It is
used for managing and reporting on fixed
assets within an organization.

MATERIALS
A set of configuration settings used for

managing and tracking an organization's
tax-related transactions, such as sales tax,
Tax Configuration value-added tax (VAT), and withholding tax.
It includes information such as the tax codes
used, the tax rates applied, and the tax
jurisdiction
An element used to track the costs

associated with a specific business activity,
Cost Element such as production or sales. It is used for
cost accounting and profitability analysis
purposes.
A temporary cost center used to track the

costs associated with a specific project,
Internal Order
event, or activity. It is used for budgeting,
planning, and controlling expenses.
A segment used for profitability analysis

purposes. It represents a product, service,
or business unit within an organization. It is
Profitability Segment
used to evaluate the profitability of
different aspects of an organization's
operations

MATERIALS
A line item used in financial statements,

such as income statements or balance
Financial Statement Item sheets. It represents a specific financial
transaction or event, such as sales revenue
or accounts payable.
A code used to represent different types of

fixed asset transactions, such as acquisition,
Asset Transaction Type
depreciation, or disposal. It is used for
tracking and reporting purposes.
An account used for managing the

reconciliation of subledger accounts, such as
Reconciliation Account accounts payable or accounts receivable,
with the GL. It helps in ensuring accurate
and up-to-date financial data.
A division within an organization responsible

for a specific business function, such as
Functional Area marketing or finance. It is used for cost
accounting and profitability analysis
purposes.

MATERIALS
A unit used for managing and analyzing an

organization's profitability by product, region, or
business segment. It includes information such as
Profit Center the profit center name, the responsible person,
and the cost and revenue data. It is used for
management accounting and profitability analysis
purposes.
A template used for recording and posting

recurring financial transactions. It includes
information such as the account number, the
Recurring Entry
posting period, and the posting frequency. It is
used for saving time and effort when entering
repetitive transactions.
A ledger used for recording and reporting financial

transactions that cannot be managed in the
standard general ledger. It includes information
Special Purpose
such as the data sources used, the period
Ledger
definition, and the layout definition. It is used for
managing special accounting requirements and for
generating custom financial reports.
A unit used for managing and tracking the value of

an organization's inventory and fixed assets. It
includes information such as the valuation
Valuation Area
method, the currency used, and the accounting
principles applied. It is used for inventory
management and asset accounting purposes.

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GLOSSARY OF SAP

Get any SAP Video course -https://zarantech.teachable.com/courses/category/sap

A unique four-digit alphanumeric code that

A list of all the GL accounts used by a

A set of rules that determines the start and

A set of rules that determines the open and

1 Copyright© 2023, ZaranTech LLC. All rights reserved

A set of rules that determines the required

A set of rules that determines the allowed

A set of rules that determines the payment

A classification of fixed assets based on their

A sub-division of an asset that tracks the

2 Copyright© 2023, ZaranTech LLC. All rights reserved

A module used to manage an organization's

An account used to record transactions in the

A two-digit code used to determine the type

A ledger used to manage a specific type of

2 Copyright© 2023, ZaranTech LLC. All rights reserved

A module used to manage an organization's

An account used to record transactions in the

A two-digit code used to determine the type

A geographical area used for determining the

3 Copyright© 2023, ZaranTech LLC. All rights reserved

A code used to represent different types of

A set of conditions agreed upon by an

Information on an organization's bank

A bank account used by an organization for

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A method used for processing payments,

A program used to generate outgoing

A program used to manage overdue

A group of fixed assets that share similar

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A set of configuration settings used for

An element used to track the costs

A temporary cost center used to track the

A segment used for profitability analysis

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A line item used in financial statements,

A code used to represent different types of

An account used for managing the

A division within an organization responsible

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A unit used for managing and analyzing an

A template used for recording and posting

A ledger used for recording and reporting financial

A unit used for managing and tracking the value of

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200+ SAP Customers

"Be a good friend.

Support free content with

3 Copyright© 2023, ZaranTech LLC. All rights reserved

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