sap overview fico

7/31/2019 Sap Overview Fico

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Systems, Applications & Products

in Data Processing

1

Doc. No. 197/120/MS/105/00


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FI/CO ModuleOverview


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AGENDA

Accounting along with Integration

Business Process Overview

FI/CO Organisational Structure

Briefing about the Sub-modules of FI-CO module


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Accounting IntegrationAccounting Alongwith Integration

Accounting

Procurement Inventory Production Sales

Vendor Customer

Controlling

Production Cost Profitability


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Integration Entries in Finance

At the time of Procurement

Inventory A/c Dr.

Gr/Ir Clearing A/c Cr.

At the time of Invoice Verification

Gr/Ir Clearing a/c Dr.Vendor Account Cr.

At the time of Sales invoice

Customer A/c Dr.

Sales A/c Cr.


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6

R

Business Scenarios: Main Elements

Organizational Unit

Master Data

Transaction/Activity

Document

Report

Business Elements


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Data Within R/3

R

Accounting Data Within R/3

2999

2999

20002000

19991999

19981998

Records that remainin the system for anextended period oftime.

Master Records

19981998

Records with a

limited life withinR/3.

Transaction Records

JournalInvoice

Payments

JournalInvoice

Payments

G/LCustomer Master Records

Vendor Master Records

Bank Master RecordsAsset MastersProfit CentersCost

Profitability segmentsInternal

G/LCustomer Master Records

Vendor Master Records

Bank Master RecordsAsset MastersProfit CentersCost Centers

Profitability segmentsInternal Orders


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R

SAP Accounting: External/Internal

External Accounting

External Reporting

Profit &Loss(P/L)

Balancesheet

Liquiditycalcuation

Retainedearnings

report

Internal Accounting

Costcenterreports

Profitcenterreports

Profitmargin

Productcosts

reports

InternalReporting

External and Internal Accounting


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Client

Chart of Accounts

Controlling Area

Co Code 1000Co Code 2000

Plant 1100 Plant 1200Plant 2100 Plant 2200 Plant 2300

Organizational Structure


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Chart of Accounts

R

Chart of Accounts

Operating Chart of Accounts -Provides definition of valid G/L Account Master Records

Chart ofAccounts

CompanyCode

CompanyCode

CompanyCode

Each company codehas only ONE operating

chart of accounts


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R

INDEPENDENTACCOUNTING

ENTITY

=

COMPANY CODE

Assets Liabilities Revenues

Expenses

Profit/Loss

A company code is an independent accounting entity (thesmallest organizational unit for which a complete self-

contained set of accounts can be drawn up). An example isa company within a corporate group.

The Company Code

Company Code


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Financial Accounting

AccountsReceivableAccounting

FI-AR

AccountsPayable

AccountingFI-AP

AssetAccounting

FI-AA

General Ledger

B/S P&L

Product Costs

Overhead Costs

Profit Center

Sales

Purchasing


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SAP R/3 FI - Accounting Applications

FI-GL General Ledger Accounting

FI-AR Accounts Receivable

FI-AP Accounts Payable

FI-AA Asset Accounting

FIFinancial accounting

Modules


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G/L Master Record

GL Account master Data

Balancesheet Account

Profit and Loss AccountCurrency

Open item management

Tax category

Reconciliation Account

Line item display


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The Reconciliation Account and Subledgers

Customer 1

1,000

Customer 2

500

Reconciliation account:

domestic receivables

1,000 500

General ledger

Sub ledgers in Accounting


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Features of General Ledger Accounting:

View and Analysis of General Ledger Accounts

Periodic Processing Activities.

External Reporting Options

Features of GL Accounting


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Accounts Receivable

SD IncomingOrders

SD CODelivery

Invoicing CO

Payment Transactions

Dunning


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Customer Master Record

General Data - Name, Address,

Company code data -Reconciliation Account

Payment Terms

Dunning Procedure

Correspondence


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Features of Accounts Receivable

Integration with Sales & Distribution

Importance of Special GL transaction features

Significance of Reporting , Correspondence, interest

calculations & Dunning..

Features of Accounts Receivable


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Accounts Payable

MMPurchase

Order

MM COGoods

Receipt

Invoice

Receipt/

Invoice

Verification CO

Payment Transactions

Payment Program


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Features of Accounts Payable

Integration with Materials Management

Importance of Special GL transaction features

Features of Bank Payments

Significance of Reporting , Correspondence, interest

calculations

Features of Accounts Payable


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Asset Accounting

R

Asset Accounting

AssetAsset ClassClass

House

Forklift

Vehicles

Building

Assets

Trade LawTrade Law

Chart of Deprec-iation 1 < Land >

ChartChart of Deprecof Deprec--

iationiation 1 < Land >1 < Land >

Taxation LawTaxation Law

CostingCosting

Company Code1000

Cost Center

Actual Plan

Asset: Forklift

Cost center

Order

VehiclesVehicles

Trade law

Taxation law

Costing

Order

VehiclesVehicles

Actual Plan

DepreciationDepreciation

InterestInterest

Company Code

ControllingArea


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Features of Asset Accounting:

Integration with GL accounts

Methods of Asset Acquisition Process

Depreciation calculation Methods

Other transactions like Retirements, Transfers,etc.

Significance of Reporting

Features of Asset Accounting


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TAXES:

Income Tax Deducted at Source

Indirect Taxes (Integrated with MM & SD modules)

Input

Output

Taxes


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Reports In Financial Accounting

General Ledger Reports as on key dates / period / year

Customers balance outstanding on key dates with arrears in days

Vendors balance outstanding on key dates with arrears in days

Assets balances and depreciation forecast for the period


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Controlling

Cost element accounting

Cost Center Accounting

Internal order

Profit Center Accounting

Product cost controlling

Profitability analysis


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R

CONTROLLING AREA 1

COMPANYCODE 1

CONTROLLING AREA 2

COMPANYCODE 2

CONTROLLING AREA 3

COMPANYCODE 3

COMPANYCODE 4

COMPANYCODE 5

A controlling area identifies an independent organizational structurefor which costs and revenues are collected.

Each controlling area can have one or more company codes assignedto it (see below).

The Controlling Area

Controlling Area


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Hierarchies

Hierarchies

One main hierarchy reflects the overall structure of a companys profit

and cost center management, and is mandatory. This is called the

standard hierarchywithin R/3.

Different perspectives on profit and cost center structures can becreated using alternative hierarchiesfor reporting, planning and

allocation purposes.

StandardCost Center

Hierarchy

StandardStandard

Profit CenterProfit Center

HierarchyHierarchy


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Cost Elements

R

A cost element is used to classify and assign values to the consumption of

productive resources.

FI uses G/L accounts toFI uses G/L accounts to

classify resourcesclassify resourcesCO uses cost elements toCO uses cost elements to

classify resourcesclassify resources

Cost ElementTravel Expense #430000General Ledger AccountTravel Expense #430000

General Ledger Account

Travel Expense #430000

Cost Elements within R/3


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Primary Cost Element

R

General LedgerAccount

Travel Expense

#430000

Primary Cost Elements

There are two types of cost elements, primary and secondary.

Controlling Area

Primary

Cost Element

Travel Expense#430000

Primary cost elementsare created within

Controlling, but firstmust exist in the FIChart of Accounts.


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Secondary Cost Element

ControllingArea

Cost Center BSecondary Account

635000

Cost Center ASecondary Account

635000

Secondary Cost Elements

Secondary cost elements exist only in Controlling to facilitateinternal cost movements, such as allocations.

C C


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Cost Center

Cafeteria

The Cost Center

Cost centers are organizational units that collect the costs arisingwithin areas of responsibility.

Snackbar

PublicRelations

Design Printing SalesSourcing Inventory

Cost centers

Purchasing MarketingAdministration

Finance

Manufacturing

Catering Graphic artsPublic

RelationsSales

I l O d


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Internal Order


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Product Cost Controlling

Material Cost from - BOM

Activity prices - Resources (with combination of Cost centers)

(Setup time, man hours, machine hours)

Overheads - On percentage


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Period end activities - controlling

WIP Calculation

Order Settlement

Variance Calculation

Standard Cost estimates

Price Updates into material master


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Profit Center

Profit Centers can be product groups / Geographical hierarchy / functions

Management oriented Organization unit

For internal reporting and better control

Profit and loss A/c and Balance sheet can be drawn

Postings through other modules and direct.

P fit C t


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Profit Center

R

The Profit Center

Profit centerscollect revenues, and costs from the cost centers forwhich they are responsible.

Cost centers collect costs, but do not contain revenues, except

statistically.

Profit

Cost centersCost centers

PublicRelations

PublicRelations

Sales andDistribution

Sales andDistribution

MarketingMarketing

Profit centerProfit center

Revenue

Costs

=


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ITS TIME FOR DISCUSSION..

QUESTIONS???

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