Agenda

1 2 3 4 5

Course Objectives Financials Overview Navigation basics in SAP Organization Structures Key Configuration items

SAP ECC Solution Scope

Financial Accounting (FI) Controlling (CO) Financial Supply Chain Management (FSCM) Materials Management (MM) Sales and Distribution (SD) Production Planning (PP) Plant Maintenance (PM) Quality Management (QM) Project Systems (PS) Human Capital Management (HCM)

SAP FI
General Ledger Accounting Accounts Receivable Accounts Payable Bank Accounting Asset Accounting Special Purpose Ledger Travel Management Real Estate Accounting Funds Management Consolidation

SAP CO

Cost Element Accounting Cost Center Accounting Internal Orders Activity Based Costing Product Cost Controlling Profitability Analysis Profit Center Accounting

Basic Screen Layout

Easy Access Menu Tree

Status Bar

Help Functions

Quick Info Field Help F1 and F4 Application Help SAP Library

Basic Org Structure

Client (Technical) Operating Concern

Controlling Area 1

Controlling Area 2

Company Code 1

Company Code 2

Plant 1

Plant 2

Financial entities
Organisation Structure FI
Company Code 1 Company Code 2

Bus Area 1

Bus Area 2

Bus Area 3

Bus Area 4

Business areas are used for internal purposes to create balance sheet and profit and loss statements or alternatively can be used to meet external segment reporting requirements. Every business area can be used by every company code, i.e., Business Areas cut across the Company Codes.

Contd..

1. Terms we shoud know

Terms you should Know
Accounts Receivable
Accounts Receivable monitors and controls customer accounts. Account analysis, due date analysis as well as flexible dunning system, make it easier to pursue open items.

Accounts Payable
Accounts Payable records account postings generated as a result of Vendor purchasing activity. Automatic postings are generated in the General Ledger as well. Payment programs within SAP enables the payment of payable documents by check, EDI, or transfers.

Asset Accounting
Asset Accounting is utilized for managing your companys Fixed Assets. SAP allows you to categorize assets and to set values for depreciation calculations in each asset class.

Contd..

2. Terms we shoud know

Terms you should Know
Bank Accounting
Bank Accounting allows for management of bank transactions in the system including cash management.

Consolidation
Consolidation enables the combining of financial statements for multiple entities within an organization. These statements provide an overview of the financial position of the company as a whole.

Funds Management
Funds Management allows management to set budgets for revenues and expenses within your company as well as track these to the area of responsibility.

Contd..

3. Terms we shoud know

Terms you should Know
General Ledger Accounting
General Ledger is fully integrated with the other SAP Modules. It is within the General Ledger that all accounting postings are recorded. These postings are displayed in real-time providing up-to-date visibility of the financial accounts.

Special Purpose Ledger

Special Purpose Ledger is used to define ledgers for reporting purposes. Data can be gathered from internal and external applications.

Travel Management
Travel Management provides management of all travel activities including booking trips and handling of expenses associated with travel.

Contd..

4. Terms we shoud know

Terms you should Know
Client
In commercial, organizational and technical terms, a self-contained unit in an R/3 System with separate master records and its own set of tables.

Company Code
A Company is the unit to which your financial statements are created and can have one to many company codes assigned to it. A company is equivalent to your legal business organization. Consolidated financial statements are based on the companys financial statements.

Company Code
The smallest organizational unit of Financial Accounting for which a complete self-contained set of accounts can be drawn up for purposes of external reporting.

Contd..

5. Terms we shoud know

Terms you should Know
Business Area
An organizational unit of financial accounting that represents a separate area of operations or responsibilities within an organization and to which value changes recorded in Financial Accounting can be allocated. You can create financial statements for business areas, and you can use these statements for various internal reporting purposes.

Cost Center
An organizational unit within a controlling area that represents a defined location of cost incurrence. The definition can be based on: Functional requirements Allocation criteria Physical location Responsibility for costs

Profit Center
An organizational unit in Accounting that reflects a management-oriented structure of the organization for the purpose of internal control.

Contd..

6. Terms we shoud know

Terms you should Know
Functional Area
This area displays profit and loss calculations according to cost-of-sales accounting. This is in comparison to period accounting, which differs depending on the request. By grouping functional areas, such as administration and manufacturing, cost-of-sales accounting shows what company costs were incurred for what and displays business expenses for the operation.

Corporate Group
Complex organizations need to have the big picture. Corporate group financial statements have grown in importance compared to individual statements. Another trend is the need to portray the corporate group to the public by making conscious balance sheet policy decisions.

Currencies
Currencies are another basic configuration setting requirement which defines your companys legal means of payment by country. It is recommended that all Currency set-ups in SAP follow the ISO Standards. The ISO Standards ensure Global conformity across businesses worldwide utilizing SAP Contd..

7. Terms we should know

Terms you should Know
Chart of Accounts
A classification scheme consisting of a group of general ledger (G/L) accounts. For each G/L account, the chart of accounts contains the account number, the account name, and technical information. A chart of accounts must be assigned to each company code. This chart of accounts is the operative chart of accounts and is used in both financial accounting and cost accounting. Other charts of accounts include: Country-specific charts of accounts These are structured in accordance with legal requirements of the country in question Group chart of accounts This is structured in accordance with requirements pertaining to Consolidation.

Contd..

8. Terms we should know

Terms you should Know
Cost Element Accounting
Cost Element Accounting is the part of accounting where you enter and organize costs incurred during a settlement period. It is thus not an accounting system as such, but rather a detailed recording of data that forms the basis for cost accounting.

Cost Center Accounting

Cost Center Accounting for controlling purposes within your organization. The costs incurred by your organization should be transparent. This enables you to check the profitability of individual functional areas and provide decision-making data for management. This requires that all costs be assigned according to their source. However, source-related assignment is especially difficult for overhead costs.

Contd..

9. Terms we should know

Terms you should Know
Internal Order Management
Internal orders are normally used to plan, collect, and settle the costs of internal jobs and tasks. The SAP system enables you to monitor your internal orders throughout their entire life-cycle; from initial creation, through the planning and posting of all the actual costs, to the final settlement.

Cost Center Accounting

Activity-Based Costing provides a process-oriented, cross-functional view of overhead, in contrast to the traditional location-oriented view provided by Cost Center Accounting. Activity-Based Costing thus complements and enhances Cost Center Accounting.

Contd..

10Terms we should know

Terms you should Know
Product Cost Controlling
Product Cost Controlling allows management the ability to analyze their product costs and to make decisions on the optimal price(s) to market their products. It is within this module of CO (Controlling) that planned, actual and target values are analyzed.

Profitability Analysis
Profitability Analysis (CO-PA) enables you to evaluate market segments, which can be classified according to products, customers, orders or any combination of these, or strategic business units, such as sales organizations or business areas, with respect to your company's profit or contribution margin.

Profit Center Accounting

Profit Center Accounting provides visibility of an organizations profit and losses by profit center. Profit Centers are used for Internal Control purposes enabling management the ability to review areas of responsibility within their organization. The difference between a Cost Center and a Profit Center is that the Cost Center represents individual costs incurred during a given period and Profit Centers contain the balances of costs and revenues.

Contd..

Logistics Terms
Terms you should Know
Sales Organisation
An organizational unit in Logistics that structures the company according to its sales requirements. A sales organization is responsible for selling materials and services.

Distribution Channel
Distribution Channel through which saleable materials or services reach customers. Distribution channels include wholesale, retail, and direct sales. You can assign a distribution channel to one or more sales organizations.

Division
An organizational unit based on responsibility for sales or profits from saleable materials or services.

Sales Area
A combination of sales organization, distribution channel, and division.

Contd..

2. Logistics Terms
Terms you should Know
Purchasing Organisation
An organizational unit in Logistics, subdividing an enterprise according to the requirements of Purchasing. A purchasing organization procures materials and services, negotiates conditions of purchase with vendors, and is responsible for such transactions.

Purchasing Group
A key for a buyer or group of buyers responsible for certain purchasing activities. Internally responsible for the procurement of a material or a class of materials.

Purchasing Area
A purchasing group in a purchasing organization is assigned to one purchasing area only.

Contd..

3. Logistics Terms
Terms you should Know
Plant
In Logistics a plant is an organizational unit for dividing an enterprise according to production, procurement, maintenance, and materials planning. A place where materials are produced, or goods and services are provided.

Storage Location
An organizational unit allowing differentiation between the various stocks of a material in a plant.

Shipping Point
The Organisational Unit in Logistics that performs shipping processing. The shipping point is the part of the company responsible for the type of shipping, the necessary shipping materials and the means of transport. E.g., Company Mail Depot or Plant Rail Station.

IDES Org Structure

IDES Company Codes

Org Str Key settings

Company Code Company Controlling Area Business Area Chart of Accounts Assignments

Kick-off FI Configuration
1. 2. 3. 4. 5. 6. 7. 8. Define company Define company code Assign company code to company Define business area Cerate chart of accounts Assign company code to chart of accounts Define account groups Define field status variant

Kick-off FI Configuration
9. 10. 11. 12. 13. 14. 15. Assign company code to field status variant Define posting period variant Open and close the posting period variant Assign company code to posting period Maintain fiscal year variant Assign company code to fiscal year variant Define document types and the number ranges

Kick-off FI Configuration
16. Define tolerance group for GL accounts and employees 17. Define posting keys 18. Maintain company code global parameters

Define company
SPRO Enterprise Structure Definition - Financial Accounting Define Company New Entries Company = AB01 Company Name = AB USA Inc. Street = 123 Wall street PO Box = Postal Code = 100005 City = New York Country = USA Language Key = EN Currency = USD SAVE

Define company code

SPRO Enterprise Structure Definition Financial Accounting Edit, Copy, Delete, Check Company Code Edit Company Code Data New Entries\ Company Code = AB01 Company Name = AB USA INC. City = New York Country = USA Currency = USD Language = EN SAVE

Assign Company code

SPRO Enterprise Structure Assignment Financial Accounting Assign Company Code to Company Position Company code- company AB01 AB USA INC Save

Define business area

SPRO Enterprise Structure Definition Financial Accounting Define Business Area Business area XY01 XY02 Description Business area for AB01 Business area for AB01

Define chart of accounts

SPRO Financial Accounting General Ledger Accounting G/L Accounts Master Records Preparations Edit Chart of Accounts List New Entries Chart of Accounts = ABUS Description = Chart of Accounts for ABUS Maint. Language = English Length of GL Account Number = 6 Controlling Integration = Manual Creation of Cost Elements SAVE

Assign Co.Cd to COA

SPRO Financial Accounting General Ledger Accounting G/L Accounts Master Records Preparations Assign Company Code to Chart of Accounts - Position Company Code AB01 Company Name AB USA Inc. City New York Chart of Accounts ABUS SAVE

Define Account Groups

S P R O F in a n c ia l A c c o u n tin g G e n e r a l L e d g e r A c c o u n tin g G /L A c c o u n ts M a s te r R e c o rd s P re p a ra tio n s D e fin e A c c o u n t G ro u p N e w E n trie s C h a r t o f A c c ts. A BU S A BU S A BU S A BU S A BU S A BU S A A A A B B B B U U U U S S S S A ccou n t G rou p SCPL RSPL A CD N SCLN U N SL CLPR FA ST CA ST SA LE O T IN RM CN M FRG A D M N SLD N D e s c r ip tio n S h a re C a p ita l R e se rv e s & S u rp lu s A c c u m u la te d D e p re c ia tio n S e c u re d L o a n s U n secu red Loans C u r. L ia b ilitie s & P ro v is io n s F ix e d A s s e ts C u rre n t A s s e ts S a le s O th e r In c o m e s R a w M a te ria l C o n s u m p tio n M a n u fa c tu rin g E x penses A d m in is tra tiv e E x penses S a le s & D is trib u tio n E x penses In te re s t & F in a n c ia l C h a rg e s D e p re c ia tio n From A ccou n t 100000 100100 100200 100300 100400 100500 200000 200100 300000 300100 400000 400100 400200 400300 T o A ccou n t 100099 100199 100299 100399 100499 100599 200099 200199 300099 300199 400099 400199 400299 400399

A BU S A BU S A BU S A BU S

A BU S A BU S SA V E

IN T R D EPR

400400 400500

400499 400599

aintain
Ste 1: ai tai

iel Stat s aria ts

inancial ccounting inancial ccounting lobal ettings ocument ine Item ontrols aintain ield tatus Variants elect the tandard 0001 ield tatus Variant. Then select o y s icon and hange the ield tatus 0001 to 01, then press ter and select o y ll Icon. iel Stat s aria t B01 SAVE iel Stat s ame ield tatus or B01

Assign Co.Cd to FS
SPRO Financial Accounting Financial Accounting Global Settings Document Line Item Controls Assign Company Code to Field Status ariants Position Company Code AB01 SAVE Company AB USA Inc. City New York FSV AB01

e ine oc.Types/ um. Ranges

SPRO inancial ccounting inancial ccounting lobal Settings ocument ocument Header e ine ocument Types Position umber Range In ormation hange Intervals Interval

m er 01

ear 2007

rom 1

m er

m er

rre t m er

100000

SAVE

Define Tolerence Grps

S t e p 1 : D e f in e T o le r a n c e G r o u p s f o r G /L A c c o u n t s S P R O F in a n c ia l A c c o u n tin g G e n e r a l L e d g e r A c c o u n tin g B u s in e s s T r a n s a c tio n s O p e n It e m C le a r in g C le a r in g D if f e r e n c e s D e f in e T o le r a n c e G r o u p s f o r G / L A c c o u n ts N e w E n tr ie s C om pany C ode A B01 T o l. G r o u p N a m e o f T o l. G roup T o le r a n c e G ro u p fo r ABUS D e b it C r e d it

SAVE S t e p 2 : D e f in e T o le r a n c e G r o u p s f o r E m p lo y e e s S P R O F in a n c ia l A c c o u n tin g G e n e r a l L e d g e r A c c o u n tin g B u s in e s s T r a n s a c tio n s O p e n It e m C le a r in g C le a r in g D if f e r e n c e s D e f in e T o le r a n c e G r o u p s f o r E m p lo y e e s N e w E n tr ie s C om pany C ode = A B 01 A m o u n t p e r D o c u m e n t = 5 ,0 0 0 ,0 0 0 A m o u n t p e r O p e n It e m A c c o u n t Ite m = 5 ,0 0 0 ,0 0 0 C a s h D is c o u n t p e r lin e ite m = 2 % SAVE

Co.Cd Global Parameters

Step 3: M aintain Com pany Code G lobal Param eters

SPRO Financial Accounting Financial Accounting Global Settings Com Code pany Enter Global Parameters Position
y Business Area Financial Statem ents y Propose Fiscal Year y Define Default alue Date y Negative Posting allowed SAVE

Posting Period Variants

SPRO i a cial Acco ti g i a cial Acco ti g Glo al Setti gs oc me t Posti g Perio s efi e Varia ts for Ope Posti g Perio s e Entries

V RI AB01

T Posting Perio Variant for ABUS

SAV

Open Posting Periods

SPRO inancial Accounting inancial Accounting lobal Settings Posting Periods Open lose Posting Periods e ntries ocument Var. A/c rom o rom Acct. Acct. Perio 1 1 ear o Perio 12 rom Perio 2 2007 13 ear ear o Perio 16 ear

AB01 SAVE

2007

2007

2007

Assign o. d to PPV
SPRO inancial Accounting inancial Accounting lobal Settings ocument Posting Periods Assign Variants to ompany ode Position

COM PANYCODE AB01

VARIANT AB01

SAVE

Fiscal Year Variant

SPRO Financial Accounting Financial Accounting Global Settings Fiscal Year Maintain Fiscal Year Variant New Entries

FV

Description

Year Dependent

Calendar Year

No. of Posting Periods

No. of Special Periods

K4

April to March for ABUS

-----

-----

12

SAVE

Assign o. d to

V
iscal Y ear

SPR O inancial A cco nting inancial A cco nting G lo al Settings A ssign C om pany C o e to a iscal Y ear V ariant Position

om pany A B 01

ode

am e A B U SA Inc.

iscal K4

ear V ariant

escription A pril to M arc for ABUS

SA V

Define Posting Keys

SPRO Financial Accounting Financial Accounting Global setting Document Line item Controls Define posting keys

Coming upNext week

General Ledger Accounting Documents and Posting Controls Business Partners (Customers and endors) Accounts Receivables Processes Taxes