unit 1 - power point handout(2)

Version 6.1 August 2014

© SAP AG and The Rushmore Group, LLC 2014 1

Business Processes,

Integration, and

Configuration in a

SAP Environment

Chapter 1

August 2014 © SAP AG and The Rushmore Group, LLC 2014 2

Two Differing Learning Approaches

• Standard training

– Level 1: Introductory

– Level 2: Business processes

– Level 3: Configuration

• Our Approach

– Cross functional

– Understand business processes and their relationships to SAP's organizational structure

– Highlight integration/configuration!!


Learning by Creating a Model

Business

• Understanding business processes and their integrative nature

• Understanding SAP organizational structures

• Combining business processes and SAP organizational structure (i.e., configuration)

• Test the newly configured system

• View system outputs - statistics, reports, and graphics




Pen Incorporated

• Start-up company in the promotional pen business

• Initially buys and re-sells different lines of promotion pens

• Sells to both wholesale and retail – procure and distribute

• Later in Phase Two we will add a production facility to manufacture our own product – make-to-stock environment

SAP R/3 and

Business Processes

- Overview -


Pen Incorporated

Procure for Sales Order

Pre-Sales Activity

Sales OrderDelivery Billing

General Ledger

Accounts

Purchase Requisition

Purchase Order

Goods Receipt

In Inventory

Plant or Warehouse

Invoice Receipt

Availability Check

NO

YES

Goods to Delivery

Goods from Purchase Order

InventoryPostings

AccountsReceivable

AccountsPayable




Pen Incorporated

Produce for Sales Order

Pre-Sales Activity

Sales Order

Delivery Billing

Planned Order

Production Order

Completion Confirmation

In Inventory

Plant or Warehouse

Availability Check

NO

YES

Goods Issued to Delivery

Goods from Production Order

General Ledger

Accounts

InventoryPostings

AccountsReceivable

AccountsPayable

Issue Goods to Production

Order


Logistics

• Materials Management (MM)

• Sales and Distribution (SD)

• Production Planning (PP)

• Quality Management (QM)

• Plant Maintenance (PM)

• Service Management (SM)


Accounting and Finance

• Financial Accounting (FI)

• Controlling (CO)

• Enterprise Controlling (EC)

• Fixed Asset Management (AM)

• Project Systems (PS)




Human Resources

• Human Resources (HR)


Components of Materials Management

MaterialsManagement

(MM)

LogisticsInvoice

Verification

MaterialMaster

Physical

Inventory

Valuation

MRP

ServiceEntrySheet

ServiceMaster

ProductCatalog

Purchasing

Inventory

Mgmt.

ForeignTrade/

Customs


IntegrationProcurement Process(Procure-to-Pay)

PurchaseRequisition

Paymentto Vendor

Notify Vendor

VendorShipment

InvoiceReceipt

GoodsReceipt

Purchase Order




Components of Sales and Distribution

Sales andDistribution

(SD)

SalesSupport

Sales

CreditMgmt.

ShippingTransport

Billing

ForeignTrade

SalesInformation

System

MasterData


Sales Order Process(Order-to-Cash)

Integration

Sales OrderEntry

Post GoodsIssue

Invoice Customer

PickMaterials

Receipt ofCustomer Payment

Pack Materials

CheckAvailability


Components of Financial Accounting

Financial

Accounting

(FI)

AccountsReceivable

AccountsPayable

SpecialPurpose

Ledger

FixedAssets

Banks

GeneralLedger




IntegrationProcurement Process(Procure-to-Pay)

PurchaseRequisition

Payment

to Vendor

Notify Vendor

VendorShipment

Invoice

ReceiptGoods

Receipt

Purchase

Order



Integration

Sales OrderEntry

Post Goods

Issue

Invoice

Customer

PickMaterials

Receipt of

Customer Payment

Pack Materials

CheckAvailability

SAP R/3 Configuration

- Overview -




Business Process Integration

• “The Stool”

– Components

• Organizational Data

• Master Data

• Rules (Internal Controls)

• Transactions



Ru

les

FI

MM

SD

FI SDMM


Organizational Data

• A hierarchy in which the organizational units in an enterprise are arranged according to tasks and functions

• Are static data and are rarely changed

• The definition of organization units is a fundamental step, it is a critical factor in how the company will be structured




Master Data

• Master data is relatively fixed

– Material master data

– Vendor master data

– Purchasing information record

– General Ledger master data

• Before making the master data configurations, you must have completely defined the organizational structures


Rules (Internal Controls)

• Defines the parameters for Master Data and Transactions

• Determines functionality for Master Data and Transactions

• Relatively fixed

• Changes as policy changes


Transaction Data

• Includes internal and external exchanges that describe business activities

• Unlike master data, aggregate transactional data is dynamic – each transaction is unique




Functional Areas – When

• Phase One

– Financial Accounting (FI)

– Materials Management (MM)

– Sales and Distribution (SD)


Functional Areas – When

• Phase Two

– Financial Accounting (FI)

– Controlling (CO)

– Materials Management (MM)

– Production Planning (PP)

– Quality Management (QM)

– Sales and Distribution (SD)

The Basics

- Logging On -

Chapter 2 – Part 1




Overview

• Logging on• Logging off


Logging On - SAP R/3 Initial Screens


Logging On - The Client

• This is a numeric field• This number defines a

whole business entity




Logging On - User

• Enter the name of the SAP user

• Users of SAP system are client-specific– User identification on

one client will only allow access to that client on that server


Logging On - Password Rules

• Letters• Numbers• Easy to remember• At least 6 Characters

long• No 3 Characters can

be the same• Do not start with a ?

or an !• Can not use previous

5 passwords


Logging On - Language

• SAP supports multi-national character sets and languages on the same system, at the same time

• Default languages are English and German




Logging On - Data Record

Table

Valid Valid

Client User Password From To

820 N123451 ******** 1/1/2014 12/31/2014

820 N123452 ******** 1/1/2014 12/31/2014

820 N123453 ******** 1/1/2014 12/31/2014

821 N123454 ******** 2/1/2014 8/31/2014

821 N123455 ******** 2/1/2014 8/31/2011

821 N123456 ******** 2/1/2014 8/31/2011


Logging Off

• System > logoff• Exit button • Control box

For security purposes it is important to log off SAP whenever you leave your PC. Your user name is linked with all transactions you perform providing an audit trail.


1. Logging on the SAP System

Chapter 2 – Part 1 Exercises



The Basics

- Navigation -



Overview

• SAP screens• Basics of data entry• Working with multiple sessions• Reporting• On-line help and system messages• Setting user defaults


SAP Screen

• Easy Access desktop

• System menus

• System navigation

• Transaction name

• Transaction icons

• Transaction work area

• Status messages




SAP Screen - Easy Access Desktop

System Menus

TransactionName

TransactionIcons

TransactionWork Area

Status Messages

System Navigation


SAP Screen - Easy Access Desktop

Favorites

Folder andSub-Folder

Transactions


SAP Screen - System Menus




SAP Screen - System Navigation


SAP Screen - Transaction Name


SAP Screen - Transaction Name




SAP Screen - Transaction Icons

• Screen or view dependant– (e.g. materials master will differ from sales order

entry will differ from the main menu)


SAP Screen – Transaction Work Area


SAP Screen – Status Messages

System Message

System Information




SAP Transaction Screen

TabsHeader

Line Item

Line ItemDetail


SAP Master Data Screen

Tabs


• Using menus • Using transaction codes • Open a different transaction

in the same window• Using /n before the

transaction code• Opening another session in a

different window• Using /o before the

transaction code

Basics of Data Entry





• Types of entry fields

• Moving between fields

• Radio buttons and check boxes

• Possible entry fields

• Match-codes

• Saving data

• Canceling data



Cancel

Check Box

Pull Down

Entry (Input) FieldTabs

Save



• There are three types of entry fields:

– Required

– Default entry

– Optional entry field




Working with Multiple Sessions

Opens another session


Working with Multiple Sessions

• An SAP session is a window in which the user may perform a particular task

• Users may have up to six sessions open at one time


Reporting

• Three basic steps to running a report

– Access the report

– Enter selection criteria

– Execute the report




Reporting

Access Selection

Execution


On-line Help


On-line Help

• Help on screen fields - F1– Extended help

– Reference information

– Technical information

• Displaying possible entries - F4

• Using the Help menu– Extended help

– R/3 library

– Getting started




F1 - Key

F4 - Key

On-line Help


System Messages

• E = Error– An invalid entry has been made– The cursor moves to the field where the

error has occurred

• W = Warning– A possible error has been made– The user can continue without changing

• I = Information– Feedback from the system


Setting User Defaults



The Basics

- Business Processes -



Sales Order Process

Sales OrderEntry

CheckAvailability

ProcurementProcess

PickMaterials

PurchaseRequisition

Purchase Order

GoodsReceipt

InvoiceReceipt

Paymentto Vendor

Post GoodsIssueInvoice

Customer

Receipt ofPayment

BPI – I - Exercise

Roadmap

Run MRP

Sales Process Exercise

Order-to-Cash





Sales OrderEntry

Post GoodsIssue

Invoice Customer

PickMaterials


Pack Materials

CheckAvailability


1. Logging on the SAP System

2. Create Vendor Master

3. Create Material Master

4. Create Customer Master

5. Create Customer Quotation

6. Create Sales Order with Reference to Customer Quotation

7. Check Stock Status

Chapter 2, Group 1 Exercises

Procurement Process

Exercise

Procure-To-Pay




Procurement Process(Procure-to-Pay)

PurchaseRequisition

Paymentto Vendor

Notify Vendor

VendorShipment

InvoiceReceipt

GoodsReceipt

Purchase

Order

3-Way

Match


8. Run Materials Requirement Planning –Single Item, Single Level

9. Convert Purchase Requisition to Purchase Order

10. Create Goods Receipt

11. Create Invoice Receipt from Vendor

12. Post Payment to Vendor


Sales Process Exercise

Continued

Order-to-Cash





Sales OrderEntry

Post GoodsIssue

Invoice Customer

PickMaterials


Pack Materials

CheckAvailability



13. Create Delivery Note for Sales Order


15. Pick Materials on Delivery Note

16. Post Goods Issue


18. Bill Customer

19. Post Receipt of Customer Payment

20. Review Document Flow

Financial Accounting

(FI)

- Overview -





Chapter 3, Part 1 Overview

• Financial Accounting (FI)

– Goals and Objectives

– Target Audience

– Components

• Managerial Accounting (CO)

– Goals and Objectives

– Target Audience

– Components

• Comparisons and Relationships


Goals and Objectives

• Financial accounting is designed to collect all of the data needed to support the preparation of financial statements for external users


Target Audience

Internal

• Executives

• Senior Management

• Accounts

• Administration Staff

• Employees

External

• Legal Authorities

• Banks

• Auditors

• Shareholders

• Insurance

• Taxing Authorities

• Media

• Financial Analysts




Components of Financial Accounting

Financial

Accounting

(FI)

AccountsReceivable

AccountsPayable

SpecialPurpose

Ledger

FixedAssets

Banks

GeneralLedger


Goals and Objectives

• Managerial accounting is designed to collect data for the preparation and analysis of reports for use by internal users


Target Audience

• Executives

• Senior Management

• Department Managers

• Controllers

• Cost Accountants




Components of Managerial Accounting

Controlling(CO)

CostElement

Acct

CostCenter

AcctProduct

Cost

Controlling

InternalOrders

ActivityBased

CostingProfit

Center

Acct

ProfitabilityAnalysis


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


Comparative Reporting

Financial Accounting (FI)

External Reporting

Managerial Accounting (CO)ProductCosts

Reports

Internal Reporting

CostCenter

Reports

ProfitCenter

Reports

ProfitMargin

RetainedEarnings

Report

LiquidityCalculation

Income Statement

BalanceSheet




Income Statement Bal. Sheet


(FI) TransactionDocument

AmountG/L Account #Cost Center1900012432

(CO) Transaction Document

Cost Center Cost Element

20000657 Controlling

100100

BankSupplies Exp.

Cost Center

100

Interrelated and Closely Connected


(FI)

- The Basics -


Chapter 3, Part 1 – Basics

• General Ledger

• Chart of Accounts

• Balance Sheet– Assets

– Liabilities

– Equity

• Income Statement– Revenues

– Expenses




General Ledger

• The General Ledger provides a complete record of all "acceptable" business transactions from the 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


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 Ledger for a given company

• Financial accounting reports are prepared from the balances contained in the General Ledger’s Chart of Accounts


Chart of Accounts (continued)

• There are five types of accounts contained in a Chart of Accounts– Assets

– Liabilities

– Equity

– Revenues

– Expenses

• There are two primary accounting reports prepared from the General Ledger Chart of Accounts– Balance Sheet

– Income Statement




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


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


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 stock transactions, the aggregate net income reported since organization of the company, and a reduction for dividends that have been paid to stockholders.




Balance Sheet


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.


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.




Income Statement


(FI)

- Organizational Structures -







Organizational Data





Chapter 3, Part 2 – Org Structures

• Organizational Structures– Client

– Company

– Chart of accounts

– Company code

– Credit control area


Client

• Highest hierarchical level in an SAP environment

• A complete database containing all the tables necessary for creating a fully integrated information system

• Master records are created at the client level




Client


Company

• Consolidated financial statements are created at the company level

• A company can include one or more company codes

• All company codes must use the same chart of accounts and fiscal year

• Company is not required in the definition of an enterprise (optional)


Client

Company

Organizational Structure




Company Code

• A legally independent entity

• The smallest organizational unit for which accounting can be carried out

• Business transactions are processed at this level

• Accounts are managed at this level

• Legal financial statements, such as the balance sheet and the income statement, are generated at this level using the General Ledger balances


Client

Company

CompanyCode



Chart of Accounts

• A listing of the accounts (assets, liabilities, equity, revenues, and expenses) that are contained in the General Ledger

• A chart of accounts must be assigned to every company code in order to create the General Ledger for that company

• Several company codes can use the same chart of accounts




CompanyCode 010

CompanyCode 038

CompanyCode 110

CompanyCode 117

United States Chart of

Accounts

CanadianChart of

Accounts

Chart of Accounts


Client

CompanyChart of

Accounts

CompanyCode



Fiscal Year Variant

• Specifies the accounting fiscal year for reporting purposes

• Special periods are created to aid in the quarterly or year-end adjusting process completed prior to preparing financial statements

• A single fiscal year variant is assigned to each company code




Client

CompanyChart of

AccountsFiscal Year

Variant

CompanyCode



Credit Control Area

• An organizational unit or area of responsibility created to control customer credit limits

• A company code is assigned to one default credit control area

• Multiple company codes can be assigned to one credit control area


Client

CompanyChart of

Accounts

CompanyCode

Fiscal YearVariant

Credit ControlArea





Client

CompanyChart of

Accounts

CompanyCode

Fiscal YearVariant

Credit ControlArea



Consolidation and Business Areas

Company

• A company is an organizational unit in Financial Accounting which represents a business organization according to the requirements of commercial law in a

particular country.

Business Areas

• A unit in an enterprise that groups product and market combinations as homogeneously as possible for the purpose of developing unified business policy.


Client

GeneralMotors

GM Corp.Chart of Accts

GMC CadillacChevrolet

CorporateFiscal Year Var.

GM–CorporateCredit CA

Cars Cars

Trucks Trucks Trucks

Business Areas

Consolidation of Company Codes

Optional Organizational Structures




Client 100

Chart ofAccounts

CompanyCode

Fiscal YearVariant

Credit ControlArea

Pen Inc.


Chapter 3 – Exercises

21. Create Company Code

22. Create Chart of Accounts

23. Assign Company Code to Chart of Accounts

24. Assign Company Code to Fiscal Year Variant

25. Create Credit Control Area

26. Assign Company Code to Credit Control Area

27. Assign Permitted Credit Control Area to Company Code

Material Management

(MM)

- Organizational Structures -

Chapter 4






Organizational Data





Chapter 4 – Overview

• Purchasing and SAP

• Procurement Process

• Organizational Structures

• Organizational Relationships

• Warehouse Management




Unit Concept

• The purchasing process involves the acquisition of goods and services to support the creation of goods and services in the organization

• In this unit the structure required for the purchasing process is presented


Purchasing and SAP

• The purchasing process exists in the Materials Management (MM) and Financial Accounting (FI) module

• The structure includes elements of the MM and FI modules

• Master data for the purchasing process exists in the MM and FI modules

• The purchasing process can and does interface with the Production Planning (PP), Warehouse Management (WM), and Quality Management (QM) modules


Components of Materials Management

MaterialsManagement

(MM)

LogisticsInvoice

Verification

MaterialMaster

PhysicalInventory

Valuation

MRP

ServiceEntrySheet

ServiceMaster

ProductCatalog

Purchasing

InventoryMgmt.

ForeignTrade/

Customs





PurchaseRequisition

Paymentto Vendor

Notify Vendor

VendorShipment

InvoiceReceipt

GoodsReceipt

Purchase

Order

3-Way

Match


Organizational Structures

• Valuation Area

• Plant

• Storage Locations

• Purchasing Organizations

• Purchasing Groups


Valuation Area

• The valuation area determines at which level a material is valuated (inventory value is established)

• SAP allows valuation at the company code or plant level, but recommends valuation area be set at the plant level




Plant

• Lowest valuation area

• Organizational level where Material Requirements (MRP) runs

• Generally used to describe a production site, a distribution center or centralized warehouse

• May be a physical or logical unit


Storage Location

• Subdivision of a plant

• Where materials are managed (inventory management)

– Raw Materials

– Maintenance, Repair, and Other (MRO)

– Finished Product

• May be a physical or logical unit


Organizational Relationships

• Plant/Storage Location

Storage Location20 - Quality

Storage Location10 - Inventory

Plant P001




Purchasing Organization

• Organizational unit responsible for the procurement of materials and services.

• SAP requires that purchasing organizations be assigned at the plant level

• A purchasing organization can be assigned to more than one plant

• A purchasing organization can be assigned to a company code


• Plant/Purchasing Organization (1)

One plant – multiple purchasing organizations

Purchasing Organization – P002


Plant P001




Each plant has its own purchasing organization


Plant P002


Plant P001


(Continued)





One purchasing organization for multiple plants

Plant – P002Plant – P001



(Continued)



(continued)


One purchasing organization for multiple company codes

Company CodeC002

Company CodeC001


Plant – P002Plant – P001


Purchasing Group

• Responsible for specified purchasing activities

• Often used to identify individual buyers

• Used for reporting





• Purchasing Organization/Purchasing Group

Purchasing Group002

Purchasing Group001





Company CodeC001

Storage Location20 - Quality

Storage Location10 - Inventory

Plant P001

Purchasing Group

001


Warehouse Management

• Not required for the purchasing functionality of SAP

• Is a separate module in the SAP environment

• Many functions and elements can be performed outside of the module




Warehouse Management Elements

• Receiving, identifying and sorting goods

• Placing goods into storage bins

• Monitoring and inspecting goods in storage

• Preplanning distribution of materials

• Picking and accumulating orders


Company C001

Plant P001

Storage Loc. 10

Warehouse 1

Aisle 1

Rack 1

Aisle 2

Rack 1

Aisle 3

Storage Loc. 20

Plant P002

Storage Loc. 30

Warehouse 1

Aisle 1

Rack 1

ABC123

Aisle 2

Storage Loc. 40

Warehouse Management Relationships

Inventory Management(MM)

Warehouse Management (WM)

Company Code

Plant

Storage Loc.

Warehouse

Aisle

Storage Rack

Bin



28. Verify Valuation Area

29. Define Plant (P_ _ _)

30. Define Storage Locations for Inventory and Quality

31. Define Purchasing Organization

32. Create Purchasing Groups

33. Assign Plant to Company Code

34. Assign Purchasing Organization to Company Code

35. Assign Purchasing Organization to Plant

36. Setup Parameter ID




- Rules (Internal Controls) -

Chapter 5


Rules






Chapter 5 – Rules

• Rules– Account groups

• BS – Balance Sheet Account Group

• PL – Income Statement Account Group

• RA – Reconciliation Account Group

– Field status variant

• Field status groups

– Fiscal year variant




Account Groups

• Identifier that controls which fields must be entered when an account is created

• Determine a valid number interval for each of the groups (types) of General Ledger accounts that have common attributes

• Must be created before General Ledger Chart of Accounts master records can be created

• You must assign each account to an appropriate account group


Account Groups

Chrt/accts Acct group Description From ToCHRT BS Balance Sheet 100000 399999 CHRT PL Income Sheet 400000 999999CHRT RA Reconciliation 110000 310000


Account control Suppress Req. entry Opt. entry Display

CurrencyTax categoryReconciliation account

…

Account Group BS

Account controlAccount managementDocument entryBank/financial detailsInterest calculationJoint venture

Account Groups




Field Status

• Field status controls how the data will be entered for a field when an accounting master record is being used in a transaction

• Determining whether a field is required, optional, suppressed, or display only

• Field status controls are also relevant to a specific activity — create, change, or display


Field Status Variant

Fld status groupTextZALL All AccountsZBSA Balance Sheet AccountsZEXP Expense AccountsZGRI Material Management (GR/IR) AccountsZRCN Reconciliation AccountsZREV Revenue Accounts


Field status variant (V000) - Group ZBSA - Balance Sheet Acct.

General dataAdditional account assignmentsMaterials managementPayment transactionsAsset accountingTaxes

...

General Data Suppress Req. entry Opt. entry Display

Assignment numberTextInvoice reference…

Field Status Variant





37. Create Account Groups

38. Define Retained Earnings Account

39. Review Field Status Variant

40. Assign Company Code to Field Status Variant


- Master Data -

Chapter 6






Master Data

• Master data is relatively fixed

– Material master data







• General Ledger Master Data

– Chart of Accounts Data

– Company Code Data

– Reconciliation Accounts• Accounts Receivable

• Accounts Payable

• Goods Receipt/Invoice Receipt

• General Ledger Account Balances


General Ledger – Master Data

• A unique master record is created for each General Ledger account

• General Ledger accounts are created at the client level

• Business transactions are posted to the portfolio of General Ledger accounts made available to a company through the assignment of a specific Chart of Accounts




General Ledger – Master Data

(continued)

• Contains control information for:– Data entry

– Data processing

• Specifies the account type:– Balance sheet

– Income statement


General Ledger

Organization of the Data

• Contains one or more Chart of Accounts specific information areas

• Contains one or more Company Code specific information areas

• In this way, a General Ledger master account can be shared by several combinations of Charts of Accounts and Company Codes


100101

CPEN

X

BS

Account numberChart of accounts

Account groupP&L statement acct type Balance sheet account

General Ledger

Chart of Accounts Data

• Account number• Name of the Chart of

Accounts• Account group provides

information that controls the creation of the master record for a company code




General Ledger

Company Code Data

• Local currency

• Foreign currency

• Tax category

• Open item management

• Line item display

• Sort key


General Ledger

Company Code Data (continued)

• Local currency

– Specify the currency in which the account is to be posted

– Transaction figures are always updated and displayed

in local currency


General Ledger


• Foreign currency

– Specify the alternative currency in which the account is to be posted

– It is possible to select up to two alternative currencies

– Transaction figures will be updated in both the local and alternative currencies




General Ledger


• Tax category

– Specify the type of tax on purchase and sales (input or output taxes) that can be posted to the account

– If the account is not tax relevant, do not make a specification in this field


General Ledger


• Open item management

– Indicates that the account is subjected to an affirmative clearing process involving the matching of debits to credits with the purpose of closing each individual line item

– For example, reconciliation accounts

– You can only archive an accounting document if all of its individual line items have been cleared


General Ledger


• Line item display

– Select if it is desirable to view all the debit and credit detail for the account

– Remember that when posting items to such accounts and displaying line items, additional storage space and system time are required




General Ledger


• Line item display should not be used for the following accounts:

– Reconciliation accounts

– Accounts that have a summation function and are analyzed by another application such as revenue or stock accounts

– Output and input tax accounts, since tax information is required only in connection with the document


General Ledger


• Sort Key

– Necessary when line item display is selected

– Determines the data field that will be used to sort the line items

• Posting date

• Document date

• Cost center


General Ledger


• Reconciliation accounts

– When you post to a sub-ledger, the system automatically concurrently posts to the corresponding reconciliation account in the general ledger

– In this way, the general ledger is automatically updated and remains in balance with the individual account totals




SubsidiaryLedger Accounts

A/R, A/P, Assets

General Ledger Reconciliation Accounts

A/R, A/P, Assets

General Ledger


Debit Credit

Debit Credit

A/P

Debit Credit

A/R

Debit Credit

Assets

$$ $$

$$ $$$$ $$$$ $$

GeneralLedger


Accounts Receivable

Reconciliation Account

Accounts Receivable

Reconciliation

950

300

Customer 142

150

Customer 123

400

Customer 135

100

Customer 189


Accounts Payable Reconciliation Account

Accounts Payable

Reconciliation

950

250

Vendor 100435

200

Vendor 100234

100

Vendor 100621

300

Vendor 100846




Line Item Display

Account number 100999 Bank Account

Company code C999

Period Debit Credit DC bal. Balance

C/f bal. 750,000.00

Period 1 5,250.00 3,540.00 1,710.00 751,710.00

Period 2 25,000.00 15,000.00 10,000.00 761,710.00

Period 1

Doc. no. DT Doc.date Currency Amount

1500000013 KZ 01/05/04 USD 1,800.00 -

1500000014 KZ 01/06/04 USD 990.00 -

100000012 SA 01/08/04 USD 750.00 –

1400000342 DZ 01/14/04 USD 5,250.00


Chapter 6, Group 1 – Exercises

41. Create Bank Account

42. Create Accounts Receivable Reconciliation Account

43. Create Trading Goods Inventory Account

44. Create Operating Supplies Inventory Account

45. Create Accounts Payable Reconciliation Account

46. Create Goods Receipt / Invoice Receipt Reconciliation Account

47. Create Output Tax Account

48. Create Input Tax Account

49. Create Retained Earnings Account

50. Create Common Stock Account


51. Create Trading Goods Consumption Expense Account

52. Create Operating Supplies Expense Account

53. Create Utilities Expense Account

54. Create Purchase Price Difference Expense Account

55. Create Information Technology Expense Account

56. Create Miscellaneous Expense Account

57. Create Cost of Goods Sold

58. Run General Ledger List of Accounts Report

Chapter 6, Group 2 – Exercises




Materials Management

(MM)

- Master Data and Rules -



Ru

les

MM


Master Data

• Master data is relatively fixed– Material master data








Chapter 7 – Part 1 – Overview (Master Data)

• Unit Concept

• Procure-to-Pay Process

• Vendor Master Data

• Purchasing Information Record


Unit Concept

• The purchasing process involves the acquisition of goods and services to support the creation of goods and services in the organization

• Master data and rules required for the purchasing process is presented



PurchaseRequisition

Paymentto Vendor

Notify Vendor

VendorShipment

InvoiceReceipt

GoodsReceipt

Purchase Order

3-Way

Match




Master Data – General

• Business rules and supportive information are stored in master data records

• Each master data record is unique in name or number

• Internal or external number ranges are possible

• Usually created or converted (legacy system) in the beginning

• Maintained by numerous organizations


Master Data – General (continued)

• Vendor master records are maintained by both accounts payable (A/P) and purchasing

• Material master records are maintained by purchasing, sales, production, accounting, etc.

• Purchasing information records are maintained primarily by purchasing


Vendor Master – Account Group

• Vendor masters are assigned to a vendor account group

• Through field status maintenance, vendor account groups can be setup for one-time vendors, regional vendors, and internal vendors

• The vendor account group controls both type and number range assignment for vendors




Vendor MasterOrganization of the Data

Vendor 10001

General Data

Company Code DataFinancial Accounting (FI)

Purchasing Organization Data (MM)


Vendor Master Data

• A master record must be created for every vendor

• General data, Company Code data (Financial Accounting - FI), and Purchasing Org data (Material Management - MM)

Purch. org data

Purchasing dataPartner functions

Company code data

Account management

Payment

transactions

General data

AddressControl data

Payment

transactions


Vendor Master

• Includes all data necessary for processing business transactions and corresponding with vendors

• Information is shared between the accounting and purchasing departments




Vendor Master – Typical Screens

• Address

• Control

• Payment Transactions

• Accounting Information

• Correspondence

• Purchasing Data

• Partner Functions


General Data – Address

AddressVendor NameSearch TermStreet addressCity, Region Postal codeCountry

CommunicationLanguageTelephone, Fax, E-Mail

Vendor Master General Data – Address


Vendor Master

General Data – Control Data

• Account Control– Customer– Authorization– Trading partner– Group key

• Tax Information– Tax codes– Fiscal address– Country code– City code

• Reference Data / Area– International locator number– Industry– Transport zone




Vendor Master General Data – Payment Transactions

• Bank Details– Bank Key

– Bank Account

– Account Holder

– Partner Bank Type

• Payment Transactions– Alternative Payee

– Instruction Key


Vendor Master – Company Code –

Accounting Information

• Accounting Information– Reconciliation Account

– Sort Key

– Release Group

• Interest Calculation– Interest Calculation Indication

– Interest Calculation Frequency

• Withholding Tax– Withholding Tax Code

– Exemption Number



Payment Transactions

• Payment Data– Payment Terms

– Tolerance Group

– Check Double Invoice

– Check Cashing Time

• Automatic Payment Transactions– Payment Methods

– Alternate Payee

– Payment Block

• Invoice Verification– Tolerance Group





Correspondence Accounting

• Dunning Data

– Dunning Procedure

– Dunning Block

– Dunning Recipient

– Date of Legal Dunning Procedure

• Correspondence– Local Processing

– Accounting Clerk

– Account With Vendor


Vendor Master – Purch. Org. Data –

Purchasing Data

• Conditions

– Order Currency

– Terms of Payment

– Incoterms

– Minimum Order Value

• Sales Data

– Salesperson

• Control Data

– Acknowledgement Required

– Returns to Vendor

– Automatic Purchase Order

• Default Data Material

– Purchasing Group

– Planned Delivery Time


Vendor Master – Purch. Org. Data –

Partner Functions

• Partner Functions– Partner Function– Partner Name




Purchasing Info Record

• The purchasing info record provides continuously updated information about the relationship of a specific material with a specific vendor

• Order unit, price, price changes, tolerances, reminder infos, historic data, statistics, texts

• Choice of automatic or manual updating


Source List

• The source list stores information about where to acquire a given material for a given period of time

• It specifies whether this source should be used by Materials Requirement Planning (MRP)


Chapter 7, Part 1 – Exercises

59. Vendor Account Groups

60. Create Vendor Master Accounting Record

61. Create Vendor Master Purchasing Record

62. Create Vendor Master Record Centrally







(MM)




Ru

les

MM


Chapter 7 – Part 2 – Overview (Rules)

• Fiscal Period

• Plant Parameters

• MRP




Rules






Fiscal Period

• In order to execute any material postings, the current fiscal period has to be activated

• By initializing the company code for material management, the first major integration between Financial Accounting (FI) and Logistics is completed


Plant Parameters

• Material Requirements Planning (MRP) controllers

– Individuals responsible for running and maintaining Material Requirements Planning data and reports

• Negative stock allowance

– If a material is allowed to go negative for inventory stock




Plant Parameters – (continued)

• Purchasing

– Special purchasing rules

– External purchasing only settings

• Planned orders

– Rescheduling

– Conversion to purchase requisitions


Plant Parameters – (continued)

• Document number ranges

– Planned orders

– Purchase requisitions

– Material Requirements Planning (MRP) lists

– Reservations


Material Requirements Planning

• Detailed planning level

• Primary Functions

– Monitor inventory stocks

– Determine material needs• Quantity

• Timing

– Generate purchase or production orders




Materials Requirements Planning

(continued)

• Integrates Production Planning (PP) module with the Materials Management (MM) module

• Prerequisites for Materials Requirement Planning (MRP)– Activate Material Requirements Planning (MRP) for a

plant

– Material Master created• Material Requirements Planning view

• Material Requirements Planning type



Basic Process

• Exploding the Bill of Material (if using production)

• Netting Out Inventory

• Lot Sizing

• Time-phasing requirements



Net Requirements

• Material Requirements Planning (MRP) calculates the quantity of material needed, if any, based on

– Sales Orders

– Material Reservations

– Repair Parts

– Inventory

– Purchase Orders

– Etc…




• If adequate inventory is not available to meet Material Requirements Planning (MRP) needs then the system generates

– Planned Production Orders

– Planned Purchase Orders


Net Requirements – (continued)



Lot Sizing

• Static

– Based on fixed values in the Material Master

• Periodic

– Groups net requirements together from multiple periods

• Optimum

– Calculates the optimum lot size for a several periods of net requirements


Chapter 7 – Part 2 – Exercises

65. Initialize Fiscal Period for Company Code

66. Maintain Plant Parameters for Material Management

67. Activate Materials Requirements Planning





(MM)




Ru

les

MM


Master Data

• Master data is relatively fixed– Material master data









Overview (Material Master)

• Industry Sector

• Material Type

• Maintenance Features

• Organizational Levels

• Primary Views


Material Master – Industry Sector

• Records are grouped according to industry sector and material type

• Determines the industry specific data that will appear on the master record


Material Master – Material Type

• Material types group materials with the same attributes

• Material type information determines:– What views are maintained

– Whether internal or external procurement is allowed

– If changes in material quantity are updated

– Which general ledger accounts are updated




Material Master – Material Types

• Standard material types are used in all industries.

– ROH: Raw Materials

• Purchased externally only

• No sales view

– HAWA: Trading Goods • Always purchased externally

• Sold without any change to the material

• No manufacturing views exist


Material Master – Material Types

(continued)

– FERT: Finished Products• Are produced internally

• Normally no purchasing views exist


Material Master

Additional Material Types

• HIBE: Operating Supplies

• VERP: Customer returnable packaging

• LEER: Empty containers

• KMAT: Configurable material

• ERSA: Spare parts

• DIEN: Services




Material Master

Additional Material Types (continued)

• NLAG: Non-stock, non-valuated material

• UNBW: Non-valuated, stocked material

• FHMI: Production resources/tools

• WETT: Competitive products

• PROD: Product group

• IBAU: Maintenance assembly (Plant Maintenance)


Material Master Maintenance

• Defaults - speeds entry of data by using the most frequently used field values (plant, purchasing organization, etc.)

• Reference Material - speeds entry of data by copying data from existing material master

• Profiles - speeds entry of data by copying standard data created in a profile into a selected view Materials Requirements Planning (MRP)

• Collective entry of storage location data - speeds creation of multiple storage locations


Material Master Data

• Material master data can be related to all organizational levels

• General information of a material (description, number, base unit of measure)

– Has to be related to the highest level of organization -the client




Material Master – Levels

• Client

– Description

– Units of measure

– Material number

– Engineering data

• Plant

– Planning data

– Manufacturing data

– Purchasing data


Material Master – Levels (continued)

• Storage Location– Stock quantities


Material Master – Views

• Basic data 1, 2

• Classification

• Sales: sales organization data 1, 2

• Sales: general/plant data

• Sales text

• Purchasing

• Purchase order text

• Forecasting




Material Master – Views (continued)

• MRP 1, 2, 3, 4

• Work scheduling

• Storage

• Warehouse management

• Quality management

• Accounting 1, 2

• Costing 1, 2


Material Master – Material Management

• Basic Data

• Purchasing

• MRP 1,2,3

• General Plant Data/Storage

• Accounting 1

Barrel Pen


Material Master – Basic Data

• General data– Basic Unit of Measure

• Unit of measure in which stocks of the material are managed

– Material Group• Key that you use to group together several materials or

services with the same attributes

– Division• Used to determine the sales area and the business area for a

material, product, or service




Material Master – Basic Data

(continued)

• Dimensions/EANs– Gross weight

• Used to check storage capacity in warehouse

– Net weight• Weight excluding packaging and extras – this is needed for

sales and distribution

– Weight Unit• Unit of Measure for weight

– Volume• The space that the material occupies per unit of volume


Material Master – Purchasing View

• General Data– Order Unit

• The unit of measure in which a company purchases the product

– Purchasing Group• Key for a buyer or a group of buyers, who is/are responsible

for certain purchasing activities.

• Purchasing Values– Purchasing Value Key

• Define the reminder days and tolerance limits for purchasing


Material Master – Plant Data/Storage 1

• General Data– Container Requirements

• Define the regulations that govern which type of container the material must be stored and shipped in

– Storage Conditions• Defines the conditions on how a material must be stored or

warehoused

• Shelf Life Data– Minimum remaining shelf life

• Minimum time the material must keep upon goods receipt for the goods receipt to be accepted by the system

– Total Shelf Life• Period of time the material will keep in total, from the date

of production or receipt to the shelf life expiration date




Material Master – MRP 1

• General Data– Purchasing Group

• The buyer(s) who are responsible for certain purchasing activities

• MRP Procedures– MRP Type

• Determines whether and how the material is planned

– Reorder Point• If stock falls below this point, the system is flagged to create

a planned order

– MRP Controller• The person(s) responsible for the material planning


Material Master – MRP 1 (continued)

• Lot Size Data– Lot Size

• The lot sizing procedure to calculate the quantity to be produced or procured

– Minimum Lot Size• The smallest order quantity

– Fixed Lot Size• The quantity to be ordered



• Scheduling– Planned Delivery Time

• Number of calendar days needed to obtain the material

– Scheduling Margin Key• Used to determine the floats required for scheduling

• Net Requirement Calculation– Safety Stock

• Specifies the quantity whose purpose is to satisfy unexpectedly high demand in the coverage period





• Availability Check– Specifies whether and how the system checks

availability and generates requirements for materials planning


Material Master – Accounting 1

• Current Valuation– Valuation Class

– Allows the stock values of materials of the same material type to be posted to different G/L accounts.

– Allows the stock values of materials of different material types to be posted to the same G/L account.

– Determines together with other factors the G/L accounts updated for a valuation-relevant transaction (Material Movements)

– Price Unit– Number of units to which the price refers


Material Master – Accounting 1

(continued)

• Current Valuation– Price Control Indicator

– The price control used to valuate the stock of a material (e.g, Standard or Moving Average Price)

– Standard Price– The valuation of material stocks at standard prices

means that all goods movements are valuated at the same price over an extended period

– Moving Average Price– The system calculates the moving average price

automatically by dividing the material value in the stock account by the total of all storage location stocks in the plant concerned




Chapter 7 – Part 3 – Exercises

68. Define Attribute for Material Types (Set Updating/Deselect Classification)

69. Create Material Master for Trading Goods

70. (Optional Exercise) Create Material Master for Operating Supplies


(FI)

- Rules -

Chapter 8



Ru

les

FI




Rules







• Posting Periods

• Tolerance Groups for Account Postings

• Accounts Payable Settlement

• Document Numbers


Posting Periods

• Before it is possible to post documents, it is necessary to define posting periods

• Fiscal years are divided into one or more posting periods

• Each posting period is delimited by both a start and finish date

• A common division of a fiscal year involves defining 16 posting periods -- 12 months and 4 quarter ending posting periods




Tolerances Groups for

Account Postings

• Internal control – amount limits that serve to define the maximum authorization levels for your employees– Must be at least one entry for every company code

– Can be defined for an employee group with employees being assigned to a given group to effect the control

– Can be undefined at the group level meaning that the control is effective for everyone who is not a member of a group


Tolerances Groups for

Account Postings (continued)

• Internal control – amount limits that serve to define the maximum authorization levels for your employees with respect to: – A single transaction

– A customer or vendor account line item

– Discount percentage granted to a line item

– Payment differences that can be accepted in settlement of an account (e.g., accounts payable)


Accounts Payable Settlement

Purchase

Order

Goods

Receipt

Invoice

Receipt

Debit Credit

Payment

Program

Verification





(continued)

• Select payment method and bank

• Select items for payment

• Calculate the payment amount, taking account of cash discount periods

• Post the payment document

• Print payment medium


Document Numbers

• All posted transactions must have a unique number assigned to it

• Usually these numbers are system generated

• The numbers serve to specifically identify the business content of a transaction so that it may be recalled at a later time

• The actual system stored document number includes information respecting the year, date, and company codes


Document Numbers – (continued)

• Before any documents can be posted to a company or company code, there must be a number range assigned to the document type

• New transaction document number ranges must be created at the start of each new fiscal year




71. Define Posting Periods Variant

72. Open and Close Posting Periods

73. Assign Posting Periods Variant to Company Code

74. Create Tolerance Groups for Account Postings

75. Setup Payment Program

76. Create Tolerance Groups for Accounts Receivable and Accounts Payable

77. Create Financial Accounting (FI) Document Numbers



(FI)

- Transactions -

Chapter 9



FI




Transaction Data





• Document Principles

• Document Types

• Posting Keys


Document Principles

• Each completed accounting transaction writes data to the database and creates a unique electronic document

• Each document contains information such as:

– Responsible person

– Date and time of the transaction

– Commercial content including company codes




Document Principles – (continued)

• An accounting document captures the entire transaction in a manner that facilitates recall for reporting purposes

• It remains as a complete unit in the system until archived

• Once created, a document can not be deleted from the database



• The SAP document principle provides a solid framework for a strong internal control system

• Audit trails allow an accountant to begin with an account balance on a financial statement and trace through the accounting records to the transactions that support the account balance or to trace individual transactions to the effected account balance(s) on a financial statement



• Each posted accounting document has a header





• Each posted accounting document has at least two lines (e.g., debit and credit)


Document Types

• A way to categorize different transactions

– Many different document types are supplied in the system

• Document types are associated with number ranges

– All documents of the same document type are stored in the system by document number

• Determine the type of account that can be posted to


Document Types – (continued)

• SA – General ledger account documents

• DR – Customer invoices

• DG – Customer credit memos

• DZ – Customer payments

• KR – Vendor invoices

• KG – Vendor credit memos

• KZ – Vendor payments

• KN – Vendor net invoices and credit memos




Posting Keys

• Determine whether the item to be posted is a debit or a credit

• Determine the type of account that can be posted


The posting key (PK) has a control function that pertains to the document line items.

It determines the following:

• Account type for posting the line item

• Debit or credit posting of line items

• Field status for additional information

Posting Keys – (continued)


Assets

70 75

General Ledger

40 50

Material

89 99

Customers

0 1

Vendors

2 3

Common

Posting

Keys

Posting Keys – (continued)





78. Review Document Types79. Post Initial Cash Investment by Owners80. Post Purchase of Operating Supplies81. Display and Review General Ledger Account

Balances and Individual Line Items


(FI)

- Transactions -

Chapter 10



FI




Transaction Data





• Monthly Rent Cycle

• Invoice Receipt

• Invoice Entry

• Accounts Payable Settlement


RentalAgreement

AccountsPayable

InvoiceReceipt

Monthly Rent Cycle




Invoice Receipt

Invoice

Receipt

Invoice

Verification


Vendor Information

Invoice Entry



• Select payment method and bank

• Select items for payment

• Calculate the payment amount, taking account of cash discount periods

• Post the payment document

• Print payment medium





82. Create Vendor Master Record for Landlord

83. Create Rent Expense Account

84. Create Invoice Receipt for Rent Expense

85. Display and Review General Ledger Account Balances and Individual Line Items

86. Display and Review Vendor Account Balances and Individual Line Items

87. Post Payment to Landlord

88. Display and Review General Ledger and Vendor Account Balances and Individual Line Items

unit 1 - power point handout(2)

Documents