Professional Documents
Culture Documents
A company code is an independent accounting entity(the smallest organizational element for which a complete selft-contained set of
accounts can be drawn up). A company code has a unique four character key, which can be alphanumeric.
The general ledger is kept at the company code level and is used to create the legally required balance sheets and profit-and-loss
staterments for the company code
-Financial statements are generally prepared at the company code level.
-the financial data recorded in the general ledger are used to generate the financial statements needed for external report.
-a balance sheet is a snapshot of the organization at a point in time, which indentifies assets, liabilities and equity
-a profit and loss/income statement indicates the changes in a company financial position over a period of time, which
identifies revenues, costs and profit/losses
A company code is specified on every financially based transaction of mySAP ERP. This is done either manually or by derivin the
company code from other data elements. The companies of IDES international are created as company codes in mySAP ERP.
The business segments, or branches in which a group operates can be set up in the SAP system as business areas. Business areas
provide an additional evaluation level for segment reporting.
Business areas are internal divisions of an enterprise that are used to define areas of responsibility or to meet the external reporting
requirements of an enterprise segement.
The Business area field shows up as an additional account assignment when posting to an account as long as the field is turned on in
configuration.
Financial statements are generated for each business area within the enterprise. A business area is often based on either the
enterprise product line or its geographic division, across company codes.
Controlling area is the most important organizational element in Controlling Application.
Controlling area indentifies a self contained organizational structure for which costs and revenues can be managed and allocated.
More than one company code can be assigned to one/more controlling areas.
The goal of financial accounting is to record the financial impact of business activities. More specifically, the GL includes many
accounts that companies use to record financial data. A list of accounts that can be included in a GL is called a chart of accounts.
Each general ledger is set up according to a chart of accounts.
The definitions consist mainly of the account number, account name, and the type of GL account, that is, whether the account is a
Profit n Loss atype account or a balance sheet type account.
Profit/Loss accounts are divided into revenues and expenses.
Balance sheet accounts are grouped into assets, liabilites, and equity. *Assets = company own* *Liabilities = company owe*
For each company code, user must specify one COA for the GL. A COA can be used by multiple company codes.
The GL is an instantiation of the COA for a particular company and can include some or all of the accounts in the COA. Before user can
use an account in a company code, user have to maintain the account definition at thee COA level. User then create commpany code
specific settings, which are only valid in the company code.
Data in GL accounts are segmented by organizational level.COA data include a COA/Client segment and a company code segment.
COA segment(client) = Acc Number, Long text, short text, account group, Balance sheet/income statement acc.
Company code segment = Account currency, tax related, Field status group, Open item management, Line item display, Reconciliation
acc for acc type.
Whenever a new GL account is created, an account group must be specified for it(Account group).
Reconciliation accounts are GL accounts that consolidate data from a group of related subledger accounts. Reconciliation accounts
connect subsidiary ledgers with the GL in real time.
Balance in the reconciliation account is the sum of the postings in the related subledger accounts.
There are 3 types of COA : Operative COA, Country-specific COA and Group COA. The operational COA contains the operational acc
that are used to record the financial impact of an organization day to day transactions.
A financial accounting document(FI document) records the impact(financial data) of a transaction step on financial accounting.
A plant is an operating area/branch within a company.can be a central delivery warehouse, a regional sales office, a manufacturing
facility, a corporate headquarters, or a maintenance plant.
General data include the vendors name, adress, and communication information such as phone and fax numbers.
Purchasing data include various terms related to determining pricces, creating and communicating purchase orders, verifying
invoices, and other steps involved in executing purchases with the vendor.
Procurement cycle : Demand etermination, determining the source of supply, supplier selection, purchase order
handling, purchase order monitoring, goods receipt, invoice verification, payment processing.
The three step verif, commonly reffered to as the three way match is the standard procedure for posting
procurement transactions in MM.
Three steps contains : Purchase Order, Goods to receipt and invoice verification.
PO screen has several subdivisions : Type of document and vendor, header data, position details, and item detail.
Year end closing can be divided into two main sections : legal requirements, technical and organizational
requirements.