ERP-3 Group: 9

Submitted By:

Jaswasi Jashowanta Sahoo-UM20205

Kriti Modi-UM20208
Megha Bharadwaj- UM20209
Meghna- UM20210
Niharika Singh- Um20211
 Best
BestPractices
Practicesin
in Financial
Financial&& Management
Management Accounting
Accounting

Accounts
AccountsPayable
PayableBest
BestPractices
Practices
• The basic process in most companies is to receive three types of information from three sources—an invoice from the
supplier, a purchase order from the purchasing department, and a proof of receipt from the receiving department.

Characteristics
Characteristics

Pay
PayBased
Basedon
onReceiving
ReceivingApproval
ApprovalOnly
Only Reduce
ReduceRequired
RequiredApprovals
Approvals
Automate
Automatepayments
paymentsfor
for
Use
Useprocurement
procurementcards
cardsand
and repeat processing
repeat processing
Route
Routeall
allinvoices
invoicesdirectly
directlyto
toaccounts
accounts
negotiate procurement card rebates
negotiate procurement card rebates payable
payableand
andAdopt
Adoptaastandard
standardinvoice
invoice
numbering convention
numbering convention

Accounts
AccountsReceivable
Receivable

• Accounts Recievable application component is an integral part of sales management that administers and records the
accounting data of all customers while also handling payments, customer invoices, approvals and other allied activities.

Characteristics
Characteristics
Processing
Processingofofcustomer
customerstatements
statements Receipts,
Receipts,payments
paymentsof ofcash
cashand
and
and invoices
and invoices Maintenance
Maintenanceof
ofMaster
MasterData
Data
interest for late payments
interest for late payments

Efficient
Efficientmanagement
managementof
ofCredit
Crediton-
on- Classification
Classificationand
andanalysis
analysisof
ofaccounts
accounts
line
line for Control and Reconciliation
for Control and Reconciliation
Activity-based
Activity-basedcosting
costing
• SAP direct activity allocation is implemented in the cost centre accounting sub module of SAP CO which includes
recording, estimating and portion of the performed administrations.

Methods
Methodsof
ofallocating
allocatingcosts-
costs-

i.i.Push
PushApproach(
Approach(Cost
Costflow
flowmethod)
method)

Push
Pushapproach
approachisisaamethod
methodof ofoverhead
overheadallocation
allocation
where
where we we transfer
transfer the
the cost
cost from
from sender
sender cost
cost
object
object to
to receiver
receiver cost
cost object
object with
with aa flow
flow from
from
sender
sendertotoreceiver.
receiver.

ii.
ii.Pull
PullApproach
Approach(Quantity
(Quantityinput
inputmethod)
method)

Pull
Pullapproach
approachisisaamethod
methodof ofoverhead
overheadallocation,
allocation,
where
wherequantities
quantitiesof
ofreceiver
receivercost
costobjects
objectsare
areused
used
as
as aa base
base to
to take
take the
the cost
cost from
from sender
sender cost
cost
centers.
centers.
 General
GeneralLedger
LedgerBest
Best Practices
Practices
General
GeneralLedger
LedgerBest
BestPractices
Practices
• General Ledger (G/L) accounts are used to provide a picture of external accounting and accounts and to record all the
business transactions in a SAP system. This software system is fully integrated with all the other operational areas of a
company and ensures that the accounting data is always complete and accurate.

Characteristics
Characteristics

Modify
ModifyAccount
AccountCode
CodeStructure
Structurefor
for
Eliminate
EliminateSmall-Balance
Small-BalanceAccounts
Accounts Restrict
Restrictuse
useof
ofjournal
journalentries
entries
Storage of ABC Information
Storage of ABC Information

Reduce
Reducethe
thechart
chartof
ofaccounts
accounts Use
Useautomated
automatederror-checking
error-checking

COST
COSTCENTRE
CENTRE&
&PROFIT
PROFITCENTRE
CENTREACCOUNTING:
ACCOUNTING:
•• The
TheCost
CostCenter
Centerisisthe
thearea
areaofofan
anorganization
organizationwherewherecosts,
costs,expenses
expensesincurred
incurredororcharges
chargescan
canbe
becharged
chargedand
andaccounted
accounted
for.
for. This
This also
also indirectly
indirectly contributes
contributes to
to the
the overall
overall profit
profit of
of the
the organization.Profit
organization.Profit Center
Center Accounting
Accounting (ECPCA)
(ECPCA) allows
allows
you
youto tocalculate
calculateprofits
profitsand
andlosses
lossesby
byprofit
profitcentre
centreusing
usingperiod
periodaccounting
accountingororthe
thecost-of-sales
cost-of-salesmethod.
method.Fixed
Fixedcapital
capitaland
and
so-called "statistical key numbers" (number of employees, square metres, and so on) can also be analysed
so-called "statistical key numbers" (number of employees, square metres, and so on) can also be analysed per profit per profit
centre.
centre.
 Year
YearEnd
Endclose
close
• SAP Year End Closure is normally accomplished by conducting a conventional period end close for the
year's final fiscal period, then processing the year end close utilizing special reports, transactions, and
procedures to clear final year end entries and carry balances forward to the next year. Final period end
closure is often meshed with year-end close and completed jointly in a step-by-step plan coordinated
between financial accountants and SAP functional and basic support staff due to timing constraints
connected to calendar changes and system times.

Characteristics
Characteristics

• • InInF1
F1go
gothrough
throughthe
theLast
LastClosed
ClosedFiscal
FiscalYear
Year
• • Use
Usereport
reportRACHEKO
RACHEKOtotolook
lookfor
forcustomization
customization
• • Check
Checkthe
theassets
assetsthat
thatare
areincomplete
incomplete
• • Check
Checkthe
theIndexes
Indexes
• • Depreciation
Depreciationisisthen
thenrecalculated
recalculated
• • Depreciation
Depreciationposting
postingrun
runisisthen
thenexecuted
executed
• • Implement
Implementaayear-round
year-roundposting
postingprogram.
program.
• • General
GeneralLedger
Ledgerand
andSubsidiary
SubsidiaryLedger
Ledgerisisthen
thenreconciled
reconciled
• • The
TheFiscal
FiscalYear
YearChange
ChangeProgram
Programisisfinally
finallyexecuted
executed
Thank You