FI Overview

GL
GL

AM

AR
AR
FI

CON

AP
AP
Special
Ledger

Financial Accounting
G/L Reporting
Legal or external
reporting
Balance sheet
Income Statement
Statement of
Financial Position

Financial Accounting
External Accounting

Stockholders

Financial Position
Profit & Loss
Balance Sheet

Bankers, Lenders

External Auditors
IRS, Taxing Authority

SEC

CO/EC Overview
COMPONENT

VIEW

ROLE

Cost Center Acctg - CO-CCA

Costs

Cost Tracking

Internal Orders CO-OPA

Costs

Small Projects

Projects - PS

Costs

Large Projects

Product Costing - CO-PC

Costs

Product Costing

Activity Based Costing

Costs

Cost Management

Profitability Analysis-CO-PA

Profits

Margin by multi-cuts

Profit Center Acctg-EC-PCA

Profits

Profit & Loss Repsons.

Executive Info. System-EC-EIS

Any data

Cross-module reports

Controlling
CO Reporting
Internal management reporting
Reports by cost centers or other
cost objects and cost elements
Cost centers
Orders and Projects
Budget/plan
Actual vs. plan

Controlling
Internal Accounting

Executives

Department
Managers

Departmental Expense
Report
Salaries
10,000
Overhead
8,000
Other
5,000
Total
23,000

Controllers

Senior Management

FI and CO comparison
FI

CO

Legal or external reporting

Reports by accounts
Balance Sheet
Income Statement

Internal management
reporting
Reports by cost centers and
cost elements
Cost Center Reports

FI/CO Organizational Structures

Client
Company

Chart of Accounts
Company Code
Business Area
Credit Control Area
Controlling Area

CLIENT

Client
Highest hierarchical level in an SAP
system
A complete database containing all the
tables necessary for creating a fully
integrated system
Master records are created at the client
level

CLIENT

COMPANY

Company
Consolidated financial statements are
created at the company level
A company can include one or more
company codes
All company codes must use the same
chart of accounts and fiscal year

CLIENT

COMPANY

CHART OF ACCOUNTS

Chart of Accounts
A listing of the accounts
A chart of accounts must be assigned to
every company code
Several company codes can use the same
chart of accounts
A different chart of accounts can be used if a
different grouping of the chart of accounts is
required

CLIENT
US CHART OF
ACCOUNTS

Co code Co code Co code

2000
3000
1000

GERMAN
CHART OF
ACCOUNTS

Co code
4000

Co code
5000

CLIENT
COMPANY

COMPANY

CHART OF
ACCOUNTS

CHART OF
ACCOUNTS

COMPANY CODE

COMPANY CODE

COMPANY CODE

Company Code

A BALANCED SET OF BOOKS

A required structure
A legally independent entity
The smallest organizational unit for which
accounting can be carried out

The level where business transactions are processed

The level where accounts are managed
The level where legal individual financial statements,
such as the balance sheet and the profit and loss
statement, are created

CLIENT
COMPANY

COMPANY

CHART OF
ACCOUNTS

CHART OF
ACCOUNTS

CREDIT CONTROL
AREA
COMPANY
CODE

COMPANY
CODE

CREDIT CONTROL
AREA
COMPANY
CODE

Credit Control Area

An organizational unit or area of
responsibility created to control customer
credit limits
A company code is assigned to one and
only one credit control area
Multiple company codes can be assigned
to one credit control area

CLIENT
COMPANY

COMPANY

CHART OF
ACCOUNTS

CHART OF
ACCOUNTS

CONTROLLING
AREA

CONTROLLING
AREA

COMPANY
CODE

COMPANY
CODE

COMPANY
CODE

Controlling Area
An organizational unit defining the company's
cost/ managerial accounting operations
A company code is assigned to one and only
one controlling area
A controlling area can have multiple company
codes assigned to it
This allows cross company cost allocations and
reporting

Fiscal Year Variant

DECEMBER

FEBRUARY
JANUARY
1

2 3 4

Determines the fiscal year

Calendar year or
non-calendar year
Allows the use of special
periods to aid year-end
closing
Is assigned to a company
7 code