unit 1 - fi & co overview

7/28/2019 Unit 1 - FI & CO Overview

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Financial Accounting

(FI)

- Overview -

Unit 1


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July 2007 SAP AG and The Rushmore Group, LLC 2007 2

SAP Enterprise System

R/3

FIFinancial

Accounting

COControlling

PSProject

SystemWFWorkflow

ISIndustry

Solutions

MMMaterials

Mgmt.

HRHuman

Resources

SDSales and

Distribution

PPProduction

Planning

QMQuality

Mgmt.PM

Plant Maintenance

SMServiceMgmt.

Client / Server

Integrated Business

Solution

ECEnterpriseControlling

AMFixed Assets

Mgmt.


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January 2008 SAP AG - University Alliances and The Rushmore Group, LLC2008. All rights reserved.

3

Unit 1, Part 1 Overview

Financial Accounting (FI) Goals and Objectives

Target Audience

Components

Managerial Accounting (CO)

Goals and Objectives

Target Audience

Components

Comparisons and Relationships


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R/3

FIFinancial

Accounting

COControlling

PSProject

SystemWFWorkflow

ISIndustry

Solutions

MMMaterials

Mgmt.

HRHuman

Resources

SDSales and

Distribution

PPProduction

Planning

QMQuality

Mgmt.PM

Plant Maintenance

SMServiceMgmt.

Client / Server

Integrated Business

Solution


AMFixed Assets

Mgmt.

Financial Accounting (FI)


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Financial accounting is designed to collect all of

the data needed to support the preparation of

financial statements for external users


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Target Audience

Internal

Executives

Senior Management

Accounts Administration Staff

Employees

External Legal Authorities

Banks

Auditors

Shareholders

Insurance

Taxing Authorities

Media Financial Analysts


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Components of Financial Accounting

Financial

Accounting

(FI)

Accounts

Receivable

Accounts

Payable

Special

Purpose

Ledger

Fixed

Assets

Banks

General

Ledger


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R/3

FIFinancial

Accounting

COControlling

PSProject

SystemWFWorkflow

ISIndustry

Solutions

MMMaterials

Mgmt.

HRHuman

Resources

SDSales and

Distribution

PPProduction

Planning

QMQuality

Mgmt.PM

Plant Maintenance

SMServiceMgmt.

Client / Server

Integrated Business

Solution


AMFixed Assets

Mgmt.

Controlling (CO)


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Managerial accounting is designed to collect

data for the preparation and analysis of reports

for use by internal users


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Target Audience

Executives

Senior Management

Department Managers

Controllers

Cost Accountants


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Components of Managerial Accounting

Controlling

(CO)

Cost

ElementAcct

Cost

Center

Acct

ProductCost

Controlling

Internal

Orders

Activity

Based

CostingProfit

Center

Acct

Profitability

Analysis


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Comparison

Managerial Accounting

Cost Center Accounting

Profit Center Accounting

Product Costing Profitability Analysis

Different Valuations

Flexibility


External Accounting

Balance Sheet

Profit & Loss Statement Legal Requirements

Standards


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Comparative Reporting

Financial Accounting (FI)

External

Reporting

Managerial Accounting (CO) ProductCostsReports

Internal

Reporting

CostCenterReports

ProfitCenterReports

ProfitMargin

RetainedEarningsReport

LiquidityCalculation

Income

Statement

BalanceSheet


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Income Statement Bal. Sheet


(FI) TransactionDocument

Amount

G/L Account #

Cost Center1900012432

(CO) Transaction

Document

Cost Center

Cost Element

20000657 Controlling

100100

BankSupplies Exp.

Cost Center

100

Interrelated and Closely Connected


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(FI)

- The Basics -


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Unit 1, Part 2 Overview

General Ledger

Chart of Accounts

Balance Sheet Assets

Liabilities

Equity

Income Statement Revenues

Expenses


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General Ledger

The General Ledger provides a complete recordof all "acceptable" business transactions fromthe viewpoint of an accountant

An acceptable business transaction has the

following traits Affects the financial position of the entity

Measurable in a currency

Affects at least two accounts

Assets = Liabilities + Equity Debits = Credits


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Chart of Accounts

The foundation for the General Ledger is the

Chart of Accounts

A Chart of Accounts contains a complete list of

all of the accounts utilized in the General Ledgerfor a given company

Financial accounting reports are prepared from

the balances contained in the General Ledgers

Chart of Accounts


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Chart of Accounts (continued)

There are five types of accounts contained in aChart of Accounts Assets

Liabilities

Equity Revenues

Expenses

There are two primary accounting reports

prepared from the General Ledger Chart ofAccounts Balance Sheet

Income Statement


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Balance Sheet Assets

Things of value that a company owns or controls

that accountants have agreed to measure in

monetary terms.

Examples of these accounts include: Cash

Accounts receivables

Plant and equipment

Inventory


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Balance Sheet Liabilities

Things that a company owes or must provide

services in order to settle that accountants have

agreed to measure in monetary terms.

Examples of these accounts include: Accounts payable

Notes payable

Bonds payable

Unearned revenue


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Balance Sheet Equity

Equity is simply the mathematical difference

between assets and liabilities.

Includes the monetary amounts collected with

respect to all preferred and common stocktransactions, the aggregate net income reported

since organization of the company, and a

reduction for dividends that have been paid to

stockholders.


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Balance Sheet


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Income Statement Revenues

The monetary amounts collected from

customers in settlement for goods purchased

from our company or services rendered by our

firm to them during the current fiscal year.


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Income Statement Expenses

The monetary amounts paid to vendors in

settlement for goods purchased by our company

or services rendered to our firm by other

companies during the current fiscal year.


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Income Statement


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The End of Unit 1

unit 1 - fi & co overview

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