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FI Concepts
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zafeer khan
Jul 25, 2007 1:56 PM

Hi all,
I am a layman to FI, can anyone provide me some basic concepts as well as some important
topics where in i can understand the basic structure of FI FLow.

Thanks
Zaf.

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Topics: abap

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Re: FI Concepts

Prasad Dixit Jul 25, 2007 1:58 PM (in response to zafeer khan)
Hi,
Please refer to the following table relationships and table names from the following links
below ->

http://www.erpgenie.com/abap/tables_fi.htm

http://www.erpgenie.com/sap/sapfunc/fi.htm

http://www.ficoexpertonline.com/

FI
http://help.sap.com/printdocu/core/Print46c/en/data/pdf/CAARCFI/CAARCFI.pdf
http://help.sap.com/printdocu/core/Print46c/en/data/pdf/CAARCFI/CAARCFI.pdf

http://www.sap-img.com/sap-fi.htm
http://www.thespot4sap.com/IntroTo/SAP_FI_Module_Introduction.asp
http://www.thespot4sap.com/IntroTo/SAP_CO_Module_Introduction.asp
http://academic.uofs.edu/faculty/gramborw/sap/sapguide.htm
http://help.sap.com/saphelp_40b/helpdata/en/e1/8e51341a06084de10000009b38f83b/applet
.htm
http://www.sapfriends.com/sapstuff.html

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Re: FI Concepts

Vijay Kumar Jul 25, 2007 1:59 PM (in response to zafeer khan)
Hi,

Basically there are 5 major topics/areas in FI,

1. GL Accounting related tables are SKA1, SKB1 Master data

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BSIS and BSAS are the Transaction Data

2. Account Receivables- related to Customer
All the SD related data when transfered to FI these are created.
Related Tables BSID and BSAD

3. Account Payables - related Vendor

All the MM related documents data when transfered to FI these are created
Related Tables BSIK and BSAK
All the above six tables data is present in BKPF and BSEG tables
You can link these tables with the hlp of BELNR and GJAHR and with Dates also.
4. Special Purpose Ledger.. which is rarely used.
5. Asset Managment

In CO there are
Profit center Accounting
Cost center Accounting will be there.

Cross-Application Components -> Financial.

http://help.sap.com/saphelp_470/helpdata/en/e1/8e51341a06084de10000009b38f83b/frame
set.htm

you will go through this link

http://www.sapgenie.com/sapfunc/fi.htm

Check this Link it out

http://www.sap-img.com/sap-download/sap-tables.zip

FI-CO

http://www.sapbrain.com/TUTORIALS/FUNCTIONAL/FI_tutorial.html

http://www.sapbrain.com/TUTORIALS/FUNCTIONAL/CO_tutorial.html

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Re: FI Concepts

Swarna Ramya Jul 25, 2007 2:03 PM (in response to zafeer khan)
Hi,

<b>Document flow confusion in SAP FI</b>

I have a problem understanding basic things like how a document flows in the Sap system.
When posting a customer invoice the subledger will be debited with that amount, now my
confusion is will the same amount be posted to the G/L only or the very same amount will
also be posted to the reconciliation general ledger - making 3 postings or The recon acc is the
G/L . I don't see 3 postings happening because then 2 debits will be Posted against one debit
-please clarify me on this.

Also the different between the G/L, Special ledgers and the recon acc is not clear to me.

<b>Customer and Vendor accounts</b> are maintained in a subledger. Posting to these

accounts will also be posted to the A/R and A/P reconciliation accounts. All Reconciliation
accouints are GL accounts.

All <b>G/L accounts</b> are not reconciliation accounts.

Why is this done?

In large businesses, there will be hundreds/thousands of customers/vendors. All these are

personalaccounts (there are three types of accounts: nominal, personal and real). These
personal accounts are grouped in to sub-ledgers and any posting to them is reconciled to the
G/L
via the reconciliation accounts.

For fulfilling completing the double entry system accounting the Reconciliation accounts i.e.,
Accounts Receivable and Accounts Payable are used. All the Vendors are grouped under
Acounts Payable & Customers are grouped under Accounts Receivable. And also always any
time the balance in reconciliation account shows as zero.

<b>Ex: 1) Vendors transaction:</b>

For Invoice posting:
Inventory A/c Dr
To Vendor A/c................Accounts Payable A/c (Reconciliation Ledger)
(In SAP since we are linking in the G/L Master Accounts Payable with the Reconciliation
Accounts type setting as Vendors. Hence, with one entry 3 Accounts are automatically
updated)

Accounts Payable is Liability & Inventory is Current Assets.

For Payment to Vendor:
Vendor A/c Dr.....Accounts Payable A/c
To Bank/ Cash A/c

<b>Ex:2) Customer Transaction:</b>

Sales Invoice Posting:

Customer A/c Dr...Accounts Receivable A/c (Reconciliation A/c)

To Sales A/c

Receipt Posting:
Bank A/c Dr
To Customer A/c...........Accounts Receivable A/c

In Normal Accounting the Reconciliation Accounts are called as Control Accounts and we pass
2 entries for each transaction i.e., Sale, as following:

1) Customer A/c

Dr

To Sales A/c

(Sales Ledger / Accounts Receivable A/c)

(General Ledger)

2) Accounts Receivable A/c Dr (General Ledger)

To Customer A/c

(Sales Ledger Adjustment A/c)

Hence, any time the Control A/c balance is zero.

These are basic accounting differentiation for different types of accoutns. This is a basic
accounting concept and is not specifically mentioned anywhere in SAP terminology.

<b>Personal accounts:</b>

Accounts in the name of individuals, organizations etc.

For example, Company A A/c, XYZ limited co A/C, Suresh A/C, Indian Bank A/C etc

<b>Real Accounts:</b>

These are accounts related to assets, both real and tangible.

example, furniture a/c, machinery a/c, accounts receivables a/c etc

<b>Nominal Accounts:</b>

These are related to incomes/expenditures and profit/losses.

for example, sales A/c, salary a/c etc

Methodology of a MRP project implementation / alternative techniques MRP

represents an innovation in the manufacturing environment. Thus, its
effective implementation requires explicit management action. Steps need
to be clearly identified and necessary measures be taken to ensure
organizational responsiveness to the technique being implemented.
Cookbook like models for implementing MRP does not exist. Each
organization poses a unique environment and that means that specific
actions need to be taken with due regard to environment specifics. We
approach MRP as an organizational innovation and identify the necessary
measure which management should adopt in implementing it. Motivational
influences underlying MRP implementation include: 1. Recognition of
business opportunity for the timely acquisition of MRP. 2. Recognition of
technical opportunity for the timely acquisition of the technologies
supporting MRP implementation. 3. Recognition of need for solving
manufacturing and/or inventory problems using MRP. Given the above
motivational factors one may readily identify what and how issues
underlying MRP design and implementation. What refers to a generic
process model composed of steps and indicative levels of effort to
implement each step. How refers to management involvement with respect
to the process. MATERIALS REQUIREMENTS PLANNING-MANUFACTURING
RESOURCE PLANNING INNOREGIO project Dr V. Moustakis Technical
University of Crete 5 1.4 Generic model for implementing MRP We set a time
framework of 12 months for implementing MRP. (Time may be shorter
assuming that component activities may be completed earlier). However, a
time span of 12 months is robust and draws from experience in
implementing MRP (or even MRPII) systems. In Exhibit 1-4, there is a
detailed report about the duration that last each phase of the MRP
implementation. Cost is specified in terms of % of total effort and represents
manpower (i.e., in person months). Cost associated with capital acquisition
(hardware or software) is not included. However, capital acquisition often
represents less than 33% of the total cost. In addition, cost associated with
MRP operation is not included (to this end often cost is absorbed by
company overhead). 1.5 Organizational measures for effective MRP
implementation Experience shows that failures in MRP system
implementation draw from two factors, namely: 1. Lack of strategic choices
needed to configure MRP system and processes; and, 2. Implementation,

which spins out of business control. Key to MRP success is organizational

involvement. Successful implementations are, more often than not, linked
with Chief Executive Officer (CEO) involvement in the process. CEO
involvement sets the necessary conditions to concerted organizational
action. Another rule is to avoid system development based on nice to have
features. Information provided by the MRP system should tune with level of
detail required in manufacturing. A system may be impressive; however,
incorporate unnecessary functionality. For example, when a manufacturing
system using Japanese Kanban visual signals needs more raw materials
from a supplier, production workers pull a card and send it to the supplier. It
would therefore be a mistake to place a firewall and to separate current
practice from MRP system implementation. This is the reason that
assessment of current situation (see process model) should be performed
at the level indicated in the diagram (see Exhibit 1-4) to capture and model
organizational specifics and to try to fit MRP around them. Continuous
monitoring of design and implementation activities drives successful MRP
instances. To this end, an issue, which should not be overlooked, is
interfaces with other organizational information resources. Indeed MRP is
part of the organizational information management infrastructure and from
that point of view it contributes to the achievement of broader goals
associated with quality, customer satisfaction, just in time delivery, etc. On
the other hand, monitoring requires metrics. Metrics need not be universal;
instead they should correspond to production planning requirements with
respect to both supply and production output. In Exhibit 1-5, we link product
characteristics with material attributes. In terms of products we distinguish
between three types by focusing on demand profile and production setup
cost. With respect to materials we distinguish between four types of
material by focusing on pattern of usage in production (steady vs. varying
use), degree of cooperation with supplier, demand and cost. Entries of the
table may be used to specify performance metrics with due