WELCOME TO SAP

WELCOME TO FICO FINANCE & CONTROLLING MODULE

Pioneers of SAP
In 1972 - 5 IBM professionals by name:

Dietmar Hopp H.W. Hector Husso Platner Claus Tchira Klas Reitherman ventured into ERP by name SAP - Systems, Applications, Products in data processing

Their first version of SAP is of Finance Module

Financial Applications

EC

Enterprise Controlling
TR
Cash management and forecast Treasury Management Cash Management

FI

CO
Overhead cost accounting Product cost accounting Profitability analysis

General Ledger Accounting Subsidiary ledgers

IM

Investment Management

PS

Project System

RE

Real Estate

© SAP AG 1999

Data Flow in FI
S D P P M M H R

Sales Revenues Production Orders Purchase Orders Payroll
G/ L A/ R A/ P Accounts Receivable Accounts Payable

Data Flow in FI

FI
A A Asset Accounting

SL Special Ledger

Overview Diagram

CO

FIBL

FITV

FIAA

MM

FIAP

FIGL

General ledger

FIAR

SD

Balance sheet ... P&L ... ...

© SAP AG 1999

Finance Sub-Modules
Foreign Exchange Management Business Analysis

Finance Information System Executive Information System G/L Information System

Cash Management and Forecast

Multiledger Accounts Payable
Invoice Verification Bank Accounts Payables Receivables General Ledger Extended General Ledger

Accounts Receivable
Credit Management

Consolidation

FI Trail/Audit Trail
Balance Sheet Balance Sheet Voucher

Profit & Loss A/c Journal Entry

- Check credit

Consolidation of All Ledger A/cs

Trial Balance

Ledger Accounts

The R/3-FI-Document

Overview Document Number Company Code Fiscal Year Document Date Posting Date Period Currency ... ... .. Items 001 PK Acct Description 002 PK Acct Description . . . . . . . . . . . . Amount + Amount . . .

Detail Document Header DT

Account Line Item 1 / PK Amount Tax Code Additional Details Business Area Cost Center Text ...

© SAP AG 1999

Basic FI Posting: Additional Line Items
Transaction
Basic Data

Invoice
Tax Details Notes

Balance

$0

Payment

Customer Invoice date Posting date Reference Amount Tax Amount Text Company Code

Account # 06.06.2000 06.06.2000 5 000 USD I0 AP Tax Exempt

Customer:

Doc. type

DR

Isis T. Greaca 230 Sterling Ave Chicago IL 60610 United States

IDES Company Code

Bank Account: 994885992

G/L Acct. 475000

Short Text Expense Acct

D/C Debit Debit Debit ...

Doc. Curr. Amt 5 000

Tax Code... I0

© SAP AG 1999

Organizational Units in R/3 FI

Client 000 Client 001 Client 400 ...

Company Code 1000

Company Code 2000

Company Code 3000

Company Code 4000

Business area 1000 Business area 2000

© SAP AG 1999

Chart of Accounts

Each general ledger is set up according to a chart of accounts. The chart of accounts contains the definitions of all G/L accounts in an ordered form. The definitions consist mainly of the account number, account name, and the type of G/L account, that is, whether the account is a P&L type account or a balance sheet type account. You can define an unlimited number of charts of accounts

Charts of Accounts

INT

CAUS

GKR

1000

10000

1000

... and as many additional charts as needed!

2000

20000

2000

© SAP AG 1999

Account Groups
Account Groups for G/L Accounts

Cash accounts

Account Group Controls Number Range and Status of flds in Co.Cd segment of master records. You could, for example, have an account group for cash accounts, one for expense accounts, one for revenue accounts, and one for other balance sheet accounts, etc To better understand Assets/ Liabilities; Expenses/ Income; Inventory; Reconciliation accounts are segregated as groups

Cash C
000000-099999 100000-199999

Company code specific settings Account definition in chart of accounts

Asset
200000-299999

General ledger

Material
300000-399999

400000-499999

P/L

Account groups

Account 001111

Liab.
500000-599999

ccount 000000-099999 A p grou

Cash

...
600000-699999

© SAP AG 1999

Reconciliation A/cs
Reconciliation Accounts

General Ledger

Recon. account. for acct type: D Trade Receivables aa bb

Recon. Account. for acct type: K Trade Payables cc dd

The subsidiary ledgers which are connected to the general ledger via reconciliation accounts are the A/P, A/R, and asset ledgers. Reconciliation accounts are
general ledger accounts assigned to the business partner master records to record all transactions in the sub-ledger. This means that a posting to a subsidiary ledger also posts to the corresponding reconciliation account in the general ledger at the same time.

Sub - ledgers

Customer aa bb

Vendor cc dd

© SAP AG 1999

Accts Rec.

Accts Pay.

Pages of the Customer/Vendor Account
Each account segment consists of several pages with different groups of fields:
Customer 1000 1000 Address Control Data Paym. Trans.

General Data
 Address  Control Data  Payment Transactions + Texts

Customer

Customer 1000 Customer 1000 Company Code 0001 Acc. Info.

Company Data
 Accounting Information  Payment Transactions  Correspondence  Insurance  Withholding Tax + Texts

Customer 1000 Paym. Trans. Company Code 0001 Customer 1000 Correspondence Company Code 0001 Customer 1000 Company Code 0001 Customer 1000 Company Code 0001 Group 1 ... Group 2 ... Insurance Withholding Tax.

© SAP AG 1999

Bank Master Data
House Bank Data Company Code House Bank-ID House bank data Bank country Bank key House bk comm. data ... + DME/EDI-data Customer/Vendor Master Data Client level
Banks

Bank Master Data Bank country Bank key Address Client ... level Control data ...

Customer/Vendor Bank Details Ctry Bank key Account Bank type Collection

© SAP AG 1999

Document Control

 Overview  Document Header
 

Document Types Document Number Ranges

 Line Items
  

Posting Keys Field Status in Posting Keys Field Status Groups

 Posting Periods  Posting Authorizations  Basic FI Documents

© SAP AG 1999

The R/3-FI-Document

Overview Document Number Company Code Fiscal Year Document Date Posting Date Period Currency ... ... .. Items 001 PK Acct Description 002 PK Acct Description . . . . . . . . . . . . Amount + Amount . . .

Detail Document Header DT

Account Line Item 1 / PK Amount Tax Code Additional Details Business Area Cost Center Text ...

© SAP AG 1999

Important Standard Document Types

mer usto s C ice Invo

mer usto C it Cred os Mem

er stom ts Cu men Pay

unt cco a G/L ngs ti Pos

DG

DR

eral Gen ments u Doc net dor Ven ces i invo redit c and os mem

dor Ven ices Invo

dor Ven it Cred os Mem

AB

dor Ven ents m Pay

KG

© SAP AG 1999

KN

KR

KZ

SA

DZ

Document Types

er ustom s C ent Paym 00000 00000 9999 9 09999

Customer Payment

DZ

0000123456

Items Customer G/L

DZ

Original Documents
r Vendo es Invoic 000 00 10000 999 99 19999

R/3 Documents KR 1000234567 Ref. No. 1112 Items Vendor G/L

Vendor Invoice No. 1112

KR

10246 00357

© SAP AG 1999

Functions of the Posting Keys (4)

Detail view Account 1. S, D, K, A, M ?

Line Item 1 / PK Amount 2. debit, Tax Code credit ? Additional Details Business Area Cost Center 3. Field Status ? Text ...

The Posting Key has control functions within the line items. It controls: 1. on which type of account the line item can be posted to 2. if the item is posted as a debit or credit 3. the field status of additional details

© SAP AG 1999

The Fiscal Year

13

14

15

16

 The fiscal year can be defined as...
12 11 10 09 08 07 06 01 02 03 04 05

 Year-independent

==> the same number and dates for the periods every year

 Year-dependent

==> periods can be differ from year to year

© SAP AG 1999

The Posting Period Variant

Posting Period Variant

Company Code 1000

Company Code 2000

Company Code 3000

Company Code 4000

© SAP AG 1999

Two Period Ranges

Open posting periods during the closing procedure open 13 14 15 16 Range 2
op

Range 1

Optional: Authorization Group restricts posting authority to special users

12 11 10 09 08

01

en

02

03 04 07 06 05

© SAP AG 1999

Taxes
When posting an invoice SAP allows for: Taxes to be levied on the invoice amount as  Value-added tax  Tax on Purchases  Additional tax  Withholding tax with the provision for two taxation types:  Federal/country level  State/jurisdictional level

© SAP AG 1999

Maximum Amounts

The maximum amounts are defined per company code in “tolerance groups.” This is also where the processing of payment differences is controlled.
Group Company Code Currency Upper limits for posting procedures Amount per document Amount per open item account item Cash discount per line item Permitted payment differences ...

© SAP AG 1999

Simplifying FI Postings
Reversal of Posted Transaction ➢ Petty Cash Transactions ➢ Cross Company Transactions ➢ Clearing ➢ Recurring Entries ➢ Accruals ➢ Sample Voucher ➢ Account Assignment Model ➢ Document Parking ➢ Cross – Company Code Transactions

Simplifying Postings

Reference document Number 087234098 Line items:
PK 40 50 50 Account 123000 345560 907902 Amount 5000 2000 3000

Sample document Sample doc. No. 255 Line items:
PK 40 50 50 Account 123000 345560 907902 Amount 5000 2000 3000

Hold/Set data Header & line items:
Co.Code: 0001 01/23/95 PK 40 Account 123000 Amount 5000

Header:
PK 40 50 50

23.01.1995
Account 123000 345560 907902 Amount 5000 2000 3000

Comp. code: 0001

Line items: Posted document

© SAP AG 1999

Standard Reversal Postings, Negative Postings

Standard reversal posting Incorrect posting Account 1 2050 2050 0 Negative posting Account 1 2050 2050 -2050 0
© SAP AG 1999

Account 1 2050 2050 2050 2050

Account 2 2050 2050 2050 2050

Account 2 2050 0 2050

Account 2 2050 2050 2050 -2050

2050

0

0

0

Petty Cash
Accounting Transactions Types
Cash X Cash X Cash X Cash X Cash X Cash X
© SAP AG 1999

Expense X Revenue X Bank X Bank X AR X X AP X X X X

Expense (E)

Revenue (R)

Cash transfer from cash journal to bank (B)

Cash transfer from bank to cash journal (C)

Customers-incoming/outgoing payment (D)

Vendors-outgoing/incoming payment (K)

Posting with Clearing (4)

Clearing account 5000

Clearing document
1. Entered manually 2. selected Open item account 2000 3000 1000 5000 3. Created automatically Items D Clearing account 5000 C Open item account 5000

4. cleared
© SAP AG 1999

The Recurring Entry Program
Template: Recurring entry original document First posting Last posting Next posting Interval in Months: Line items 001 40 Expense 002 31 Vendor 01.01.XX 12.01.XX 02.01.XX 1 1000 1000Batch input session Recurring entry program Settlement period: 02.01.XX - 02.29.XX

Actual posting Expense 1000 Vendor 1000

Next posting on 03.01.XX

© SAP AG 1999

Accruals
Reference: Recurring entry original document First posting 01/01/XX Last posting 06/01/XX Next posting 02/01/XX Interval in months: 1 Line items 40 Expense 10 50 Other payables /reserves 10Recurring entry program Accounting period: 01.02.XX - 29.02.XX

Batch input

Actual posting Expense 10 Other payables/res. 10 10 ...

Next posting on 03/.01.XX

from 01/01/XX from 02/01/XX

© SAP AG 1999

What is Document Parking?

Document parking is an alternative way to enter transaction documents in R/3. Unlike "regular" posted documents:
 

Transaction figures are not updated A user can review, change, and then repark the document The document will eventually be posted or deleted

Unlike "held" documents:

Parking a document generates a document number Parked data can be evaluated in various R3 reports

© SAP AG 1999

Documents You Can Park

 Customer accounts (invoices and credit memos)  Vendor accounts (invoices and credit memos)  General ledger accounts (G/L postings)

© SAP AG 1999

Cross-Company Code Transaction (2)

Company Code 1000 Account 1 1000
Document
Items

Document
Items

Company Code 2000 Account 2 1000

D Account 1 C Account 2

D Account 1 C Clearing 2000

Cross-Company Code Transaction 2 Documents 1 cross-company code number

Document
Items

D Account 2 C Clearing 1000

Clearing CC 2000 1000
© SAP AG 1999

Clearing CC 1000 1000

Different Types of Business Transactions

        

Down payment request Down payment Bill of exchange request Bill of exchange Check/bill exchange Ind. value adjustment Security deposit Interest User-defined

With down payments

With bills of exchange

Other

© SAP AG 1999

Special G/L Trans - Alternate Reconciliation Acct
Customer
1000 Down pymt

Vendor
1000 1000 Down pymt

1000

General ledger
Receivables 140000
1000

Payables 160000
1000

Down pymts recvd 170000
1000

Down pymts made 159000
1000

© SAP AG 1999

Bill of Exchange Example (Without Charges)
Reconciliation account Customer
(1) 10000 10000 (2) (2) (2) 09W 10000 10000 (5) (1) 10000 10000 (2)

Bill of exchange rec.
10000 10000 (5)

Revenue
8695.65 (1)

Output tax
1304.35 (1)

Bank Bank bill collection
(3) 10000 10000 (4) (5)
© SAP AG 1999

(4)

10000

Bill collection clearing
10000 10000 (3)

Archiving and Retrieval

SAP R/3 Archiving
Documents

Archive management Info. per archiving/ retrieval run \usr\sap\...

Master records

Retrieval

© SAP AG 1999

Special facilities

Automatic Payment Program Automatic Dunning Credit Management Clearing Customer cum Vendor Foreign Currency Valuations

Automatic Payments: Business Scenario

 Accounts payable invoices have to be paid on time to receive possible discounts  A consistently high volume of invoices have to be processed. The accounting department wishes to perform this processing of invoices automatically, twice per week.

© SAP AG 1999

Automatic Dunning

 Automatic Dunning Overview  Dunning Program Configuration  Parameters  Dunning Run  Editing a Proposal  Printing Dunning Notices

© SAP AG 1999

Credit Control Process
Sales order

Credit control

Rejection

Order block

Review Further processing No
© SAP AG 1999

Release?

Yes

Delivery

Billing d ...

Clearing Customer/Vendor

Cust. A Client level Account control Vendor and Autom. Paym. Tr. Clrg with vend. X Vend. B Client level

Vend. B Account control Customer and Autom. Paym. Tr. Clrg with cust. X Cust. A

Cust. A 10 10

Vend. B 10 10

 
© SAP AG 1999



Foreign Currency Valuation
P&L
Unrealized Loss Expense
...

Balance Sheet (loc.crcy UNI)
Liabilities & equity

100 UNI

- Payables

1100 UNI Payables 500 USD 1000 UNI

Vendor 500 USD 1000 UNI
Valuation difference

FX Adjustment account 100 UNI

100 UNI
© SAP AG 1999

Periodic Processes

Month End Operations Year End Operations Balance Carry forward

Month-End Closing Process
Old Month MM Maintain GR/IR FI Accruals/ deferrals, recurring entries HR Payroll expenses SD Goods issues, invoices FI Open new
periods
© SAP AG 1999

New Month MM FI Valuations
Foreign currency valuations

CO Reconciliation postings

CO Orders/ projects AA AUC settlement, depreciation, interest CO Cost centers CO Product cost contr.

FI Financial statement adjustment

Documentation Taxes on sales/purchases Bal. sheet/ P&L CO Internal reports
Close G/L

FI

CO Profitab. analysis MM Month-end closing FI

Close AR/AP

FI

Technical steps

Year-End Closing Process
Old Year MM Physical inventory PP Product costing New Year MM Lowest value, LIFO/FIFO AA FI GR/IR analysis, regrouping of receivables/ payables, other adjustments

Valuations, investment grant FI Account bals: Old FY to new FY FI

Documentation Taxes on sales/purchases Asset history sheet Bal. Sheet/ P&L Cum. bal. audit trail

FI Balance confirm. FI Open new year AA Fiscal year change

AA Close old
year

CO Internal reports FI
Close FY for G/L

FI Balance carryfoward
© SAP AG 1999

FI

Close FY for AR/AP

Technical steps

Balance Carryfoward
Example: G/L accounts (SAPFGVTR)

Old Fiscal Year Balance sheet account CB 120 Balance sheet account CB 100 P&L account CB 20

New Fiscal Year Balance sheet account CF 120 Balance sheet account CF 100 Ret. earnings account CF 20
CB = Closing balance
© SAP AG 1999

CF = Bal.carried fwd

Financial Statements

Layout of Balance Sheet Layout of Profit & Loss A/C

* Flexible Layout * User Defined Texts * Pre-configured Functions for Totals & for Groupings * Option for Drill Down Reporting
Financial Statement Versions
List of financial statement versions Maint.language Item keys auto. Chart of accounts Group account number Functional area permitted
INT EN

Financial statement items
Financial statement version Hierarchy level 1 1 2 3 4 ASSETS LIABILITIES Profit and loss Accounts not assigned XXXX Balance sheet acc. to country legislation

© SAP AG 1999

Create item

Assign accounts

The Balance Sheet Section of a Financial Statement Version
Fin. statement version XXXX Level 1 Level 2 ASSETS Subscribed equity Fixed assets Current assets LIABILITIES Equity Reserve funds

Level 3

Intang. fixed assets

Tangible assets Machinery and equipment

Financial assets

Level 4

Real estate

Technical assets

Down payment made for asset under constr.

Level 5 ... max. 10

Acquisition value

Value adjustment

© SAP AG 1999

The Profit and Loss Section of a Financial Statement Version
Profit/loss Profit for the year before tax Results of business transactions Operating result Financial result Extraord. profit/loss Approp.of net income

Level 1

Taxes

Level 2

Net sales revenue

Material expenses

Personnel expenses

Level 3

Gross sales revenue

Sales deductions

© SAP AG 1999

FI - MM

INTEGRATION

Valuation Level ==> Valuation Areas

Valuation Level = Company Code Level

or

Valuation Level = Plant Level Material Stock Plant 1000 Company Code 1000 Material Stock Plant 2000

Material Stock Plant 1000+2000 Company Code 1000 Valuation Areas = Company Codes

Plant 1000 Plant 1000
© SAP AG 1999

Plant 2000

Plant 2000

Valuation Areas = Plants

Purchase Procedure: PR > Quotation > PO > GR > IR > Payment
Standard Three-Way Match
Goods Receipt Purchase Order MM
Purchase order Material Document Goods receipt
Document
Items Material GR/IR

Material Stock or Consumption
1

MM
PO amount

FI GR/IR
2 1

FI No document

Invoice Receipt
Invoice Verification Document
Document
Items GR/IR Vendor Tax

Vendor
2

MM
© SAP AG 1999

FI

Valuation of Goods Received

V (Moving Average Price) = Total Value / Total Stock Stock/Consmpt. 250 Accounting 1 Price Control Purchase order amount GR/IR 250

Material Master

S (Standard Price) = fixed price per unit Stock/Comsmpt. 200 Standard price * quantity Price Difference 50 GR/IR 250 Purchase order amount

© SAP AG 1999

FI – SD

INTEGRATION

Sales Organizations, Distribution Channels

Company Code

A A A

A A A

Sales Organization 001

Sales Organization 002

Distribution Channel A
© SAP AG 1999

Distribution Channel B

Distribution Channel C

Sales Process
SD Sales
Sales order

FI No document

Shipping Delivery
Delivery

Warehouse transfer order
Picking

Goods Issue
Goods Issue
Document
Items ... ...

SD SD Billing
Billing document

MM FI
Invoice
Items ... ...

© SAP AG 1999

Valuation of Goods Issued

V (Moving Average Price) = Total Value / Total Stock Stock 254 Accounting 1 Price Control Moving average price * delivered quantity S (Standard Price) = fixed price per unit Stock 200 Cost of goods sold 200 Cost of goods sold 254

Material Master

Standard price * quantity

© SAP AG 1999

FI - HR

Integration

Payroll Procedure and Subsequent Activities

Master data

Changes to master data May St rto p y o a f a r ll
Pa ro a d y ll n co ct n rre io s

End of payroll settlement

June Subsequent activities per payroll period Remuneration statement
Payroll results for May

Posting to Accounting Further country-specific reporting countryData medium exchange

FI CO

© SAP AG 1999

Posting Payroll Results in Accounting
FI

Expenses
Posting Posting run run Salaries HR Posting Posting document document

Payables
Salaries payable

3,500.Social insurance

2,600.Tax payable

Payroll results

550.-

350.Payables from social insurance

1,100.Cost center 1 Salaries

CO

3,000.Cost center 2

Salaries

500.550....

Fixed cost center Social insurance Special purpose ledger, Funds Management and so on

© SAP AG 1999

Asset Accounting
Tab Pages
General General Time-Depend. Allocations Time-Depend. Allocations Origin Origin

General Data

As s

et

Posting Information

Ma

ste

rR ec ord

© SAP AG 1999

Course Overview

FI-AA
Organizational Structure Master Data Asset Transactions LegacyData Transfer Periodic Processing Information System

FI

Balance Sheet

Asset History Sheet

© SAP AG 1999

Chart of Accounts - Chart of Depreciation

Client
Chart of deprec. deprec.
Country A Book deprec. Tax Depr. Cost-acct.depr.

Chart of Accounts

...
Company code 1000 Chrt of acts. INT

Group

Company code 2000 Chrt of acts. INT

Company code 3000 Chrt of acts. CAUS

Company code ???? Chrt of acts. ????

Chart of depr. 1DE
© SAP AG 1999

Chart of depr. 1GB

Chart of depr. 1US

Chart of depr. 1??

Depreciation Areas

Asset xy in year 2000
Balance sheet vals Depreciation Net book value

Book deprec. Taxdepr. Cost acct. depr. Parallel deprec.

100 000

40 000

60 000

100 000

40 000

60 000

100 000

10 000

90 000

100 000

10 000

90 000

© SAP AG 1999

Asset Class and the Asset Master Record

Asset 001111

Class:

1000
000000-099999

et Ass s Clas

Asset Accounting

1000 C
000000-099999 100000-199999

Buildings

2000
200000-299999

Machines Fixtures and fittings Assets under construction Low-value assets

Asset 200003

2000
200000-299999

3000
300000-399999

et Ass s Clas

400000-499999

4000

5000
500000-599999

...
600000-699999

© SAP AG 1999

Asset Acquisition - Integration
Assets Accounts Payable

Fixed asset 100

Vendor 100

 Asset transaction integrated with Accounts Receivable or Accounts Payable

Assets

General Ledger

Fixed asset 100

Clrg Acct 100

 Asset transaction posted using clearing account (not integrated)

Assets

Accounts Payable

Fixed asset 100

Vendor 100

MM

 Asset transaction posted from Materials Management (MM)

© SAP AG 1999

Retirement: G/L Accounts

Retirement: - Acquis. date 01/01/YYYY - 1, APC = 6000 - Complete retirement of APC on 03/15/YYYY - Revenue 4000 + 400 sales tax A/R posting Customer 4400 Assets posting Asset 1 3 6000 6000 700 2 4 Clearing of Asset Retirmt 4000 P+L or FinStmt Notes Revenue Asset Retirmt 4000 Tax 400

P+L
Loss 1300

1 APC 2 Amount retired

3 Proportional value adjustment 4 Clearing of retirement

© SAP AG 1999

Retirement: Calculating Gain/Loss

Master Record: Record: Book Depr. Area Depr. Depreciation key LINR
Straight-line from remaining life to book value zero

APC on 01/01/YYYY-1 straight-line depr. from APC Net book value on 12/31/YYYY-1 Net book value on 01/01/YYYY - Deprec. for Jan. & Feb. = Net book value on 03/01/YYYY Sale on 03/15/YYYY Loss

6000 600 5400 5400 100 5300 4000 1300

Useful life: 10 years Period control method:
Pro rata to mid-period at period start date

© SAP AG 1999

Asset Transfer

Asset Posting Date Transaction Type

XXXX MMDDYYYY 300 (320) Asset:

Transfer to Transfer to ZZZZ MMDDYYYY 4
(May need to create master record in the transaction)

Asset value date:

Automatic determination and posting of proportional value adjustments

!

Transfer variant:

Specifications for partial transfers

© SAP AG 1999

Assets under Construction

Down Payments Special Depreciation

Acquisition Investment Support Measures

Automatic handling of special depreciation and investment support

Completed Assets
Asset 3 Asset 2 Asset 1

s. s ui fer cq s A an Tr

Asset History Sheet
Acquis. AuC Buildings Retmt. Transfers

© SAP AG 1999

Settlement of Capital Investment Measures

Capital Investment Measure
Bus.transactions during "under construction” phase Order/WBS Asset 1 Periodic settlement Final settlement Asset 2 Asset 3 Assets under construction

Asset history sheet
Assets 10
.

Cost center

Balance sheet P&L

© SAP AG 1999

Depreciation Posting Program

DEPRECIATION POSTING PROG.

Ordinary depreciation

FI
Accounts

Special depreciation

FI - AA
Individual assets

Manually planned depreciadepreciation

CO

Periodic revaluation
Index

Cost center

Order

Interest 10 %

Cost element

© SAP AG 1999

Legacy Data Transfer: Transfer Date

At year end or during fiscal year?
12/31/YYYY-1 12/31/YYYY12/31/YYYY-1 (1) 03/31/YYYY (1 + 2)

Date of actual transfer

Legacy system

FI-AA FI(1) (2)

(1) Master data, cumulative values

(2) Depreciation posted, transactions

© SAP AG 1999

Asset Sub-Number

Asset Number 1000 0 Description: Personal computer Sub-number 1 Keyboard Sub-number 2 Monitor

© SAP AG 1999

Organizational Structure in Controlling
Operating Concern Client 010

Controlling Area

Company Code 1000

Company Code 2000

Company Code 3000

Business Area

Business Area

Business Area 1000

Controlling

Data Flow in CO
FI M M S D P P A M H P FI

G/L Expenses Purchase Orders Billing Production Cost Asset Accounting Personnel Cost
C O C OC C A Overhead Cost Controlling

Data Flow in CO

Controlling
C OP C C OP A C OP C Profitability A Analysis

Product Costing

Controlling

Controlling

Components of Controlling
Overhead Cost Controlling
Cost Centers

Product Costing

Profitability Analysis
PA
Market Segment Reporting

Cost of sales
PCA
Internal orders
Business Unit Profits

Different Methods • Batch • Mass • Process • Make to order

Cost of Period

Controlling

CO Organization and Master Data
CONTROLLING AREA: PROFIT CENTRES: ACTIVITY TYPES:
Productive output from a cost CENTRE (labor hours, machine time and equipment setup)

$

COST CENTRES:
Areas of responsibility in the company that incur costs

INTERNAL ORDERS:

STATISTICAL KEY FIGURES:
Numerical measures (number of employees, sq. ft. of heated space in a building)

COST ELEMENTS:
Classification of costs in CO

FI Accounts vs. CO Cost Elements

FI
Balance Sheet Accounts Profit and Loss Accounts

CO

Primary Cost Elements Secondary Cost Elements

FI & Cost Center Accountin
FI - Expenses Wages Salaries Bonus PF Contrb. Welfare Exp. Rent Insurance Selling Exp. Bank Exp. Interest Depreciation
Canteen Cost Center Maintenance Cost Center Production Cost Center

Actual expense posting

Internal Orders
Internal orders are used to collect, monitor and settle the direct and indirect costs incurred by a specific project. They are cost collectors that have a more dynamic nature than cost or profit CENTRES.

G/L

Profit CENTREs Cost CENTREs

INTERNAL ORDERS
Publicity Event 1997 Production Order 146 Research Project 883 Item # 125-96 Sales Order 146 Maintenance Request

Internal orders are used for various detailed reporting needs.

Q&A

Question Time

Thanks

Venkata Ramana