Unit 1: Introduction

SAP stands for Systems, Applications, and Products in data processing is a ERP – Enterprise Resource Planning; designed to integrate and run all aspects of an organization

The SAP system is a fully-integrated system where activities in one area generate activities in another area

The system provides online, real-time information and one place for input of data

Manages vendor invoicesManages vendor invoices

Manages responsibility Manages responsibility accountingaccounting

Manages all financial accountsManages all financial accounts

Manages customer billingManages customer billing

Manages fixed assets and Manages fixed assets and depreciationdepreciation

Accounts ReceivableFIFI

Controlling

Accounts Payable

Asset AccountingFIFI

COCO

FIFI

General Ledger

FIFI

When you post items to a subsidiary ledger, the system automatically posts the same data to the general ledger (see the following illustration). Each subsidiary ledger has one or more reconciliation accounts in the general ledger. These reconciliation accounts ensure that the balance of G/L accounts is always zero. This means that you can draw up balance sheets at any time without having to transfer totals from the sub ledgers to the general ledger.

The payment program can make payment to a vendor other than the one to which the invoice was posted. Payment is made to an alternative payee, which is specified in the master record.

Alternate Payee in General Data Area or in Company Code Area.

If a vendor is also a customer, or vice versa, you can have the payment program and the dunning program clear the vendor and customer open items against each other. You can also select the customer line items when you display the vendor line items for this account

You can enter payment methods in the payment transactions screen for company code data. Each payment method is represented by a single letter or number.

Special G/L transactions are special transactions in accounts receivable and accounts payable that are displayed separately in the general ledger and the sub-ledger. This is achieved by posting to alternative reconciliation accounts, instead of posting to the reconciliation accounts for receivables and payables

The system requires a special G/L account for each special G/L transaction per chart of accounts. The account is defined dependent on the account type (customer or vendor), the special G/L indicator and the reconciliation account.

special G/L indicators

Vendor line item display by FBL1N

Document TypeDocument Type DescriptionDescriptionKAKA Vendor documentVendor documentKGKG Vendor credit memoVendor credit memoKRKR Vendor invoiceVendor invoiceKZKZ Vendor paymentVendor paymentRERE Gross Invoice postingGross Invoice postingSASA G/L account documentG/L account documentSBSB G/L account postingG/L account postingWEWE Goods receiptGoods receipt

A A document typedocument type is a key that is used to classify accounting documents and is a key that is used to classify accounting documents and distinguish between business transactions to be posteddistinguish between business transactions to be posted

Document generally consists of a document header and line items. Document header – contains data that identifies a document and applies

to the entire document.Date , Document type ,Document number

Line items – generally include Amount ,Account assignment , Additional details specific to the transaction

Document No: SAxxxxxxDOC Type ; SA,KR,KZ,KG,REDate: 05/06/2004Company Code: TC01Currency: USD

HeaderHeader

Line ItemsLine Items

Debits = CreditsDebits = Credits

Revenue A/C

Citibank

DR

DR

CR

CR

Bank 10000

Sale 10000

The posting key controls how the line item is entered and processed 1.Which side of an account can be posted to whether Dr. Side or Cr. Side?2. Which type of account can be posted to A- Asset, K-vendor, D-Debtor, M-Material, and S- General Ledger?

PK Transaction vendor Debit PK Transaction vendor Credit

21 Credit memo 31 Invoice

22 Reverse invoice 32 Reverse credit memo

24 Other receivables 34 Other payables

25 Outgoing payment 35 Incoming payment

26 Payment difference 36 Payment difference

27 Clearing 37 Other clearing

28 Payment clearing 38 Other clearing

29 Special G/L credit 39 Special G/L credit