Exd fico zero level training
- 1. Agenda – Zero Level Training Functional Modules Introduction SAP Financials (FI) SAP Controlling (CO)
- 3. SAP Financials Organizational Structure Company Code Client Chart of Accounts Chart of Depreciation
- 4. SAP FICO Organizational Structure Company Code Client Controlling Area Cost Center Profit Center Chart of Accounts Chart of Depreciation
- 5. SAP FICO Organizational Structure Company Code Client Controlling Area Cost Center Profit Center Chart of Accounts Chart of Depreciation Client: The client is the highest level in the SAP System hierarchy. Specifications that you make, or data that you enter at this level are valid for all company codes and for all other organizational structures. You therefore only need to make these specifications, or enter this data once. This ensures that the data is consistent.
- 6. SAP FICO Organizational Structure Company Code Client Controlling Area Cost Center Profit Center Chart of Accounts Chart of Depreciation Company Code: A company code represents an independent legal accounting entity. It is the smallest organizational unit for which complete, independent accounting can be carried out. This includes the entry of all transactions subject to posting and the creation of all items for Legal individual financial statements, such as the balance sheet and the profit and loss statement.
- 7. SAP FICO Organizational Structure Company Code Client Controlling Area Cost Center Profit Center Chart of Accounts Chart of Depreciation Chart of Accounts: The chart of accounts in SAP ( COA ) is a list of GL accounts master record That are used by the organization. The chart of accounts must be assigned to each company code. Chart of Accounts is defined at client level.
- 8. SAP FICO Organizational Structure Company Code Client Controlling Area Cost Center Profit Center Chart of Accounts Chart of Depreciation Chart of Depreciation: Charts of depreciation is used in order to manage various legal Requirements for the depreciation and valuation of assets. The chart of depreciation is usually at a country level and assigned to a company code. It includes all the procedures for the assets assigned under that chart.
- 9. SAP FICO Organizational Structure Company Code Client Controlling Area Cost Center Profit Center Chart of Accounts Chart of Depreciation Controlling Area: Controlling area is the central organizational unit in CO module. It represents a closed system for cost accounting purposes, where costs and revenues can be managed.
- 10. SAP FICO Organizational Structure Company Code Client Controlling Area Cost Center Profit Center Chart of Accounts Chart of Depreciation Profit Center: Organizational unit within a controlling area that represents a location where revenues occur. Profit Center Hierarchy: Profit Center Hierarchy is a tree structure for grouping all profit centers which belong to a controlling area.
- 11. SAP FICO Organizational Structure Company Code Client Controlling Area Cost Center Profit Center Chart of Accounts Chart of Depreciation Cost Center: Organizational unit within a controlling area that represents a location where costs occur. Cost Center Hierarchy: Cost Center Hierarchy is a tree structure for grouping all cost centers which belong to a controlling area.
- 12. Overall SAP Organizational Structure Organizational units are used to structure business functions and for reporting. Company Code Storage Location Sales Organization Distribution Channel Shipping Point (Plant is one of the condition to derive shipping point) PlantDivision Purchasing Organization Controlling Area Profit Center Cost Center Chart of Accounts Chart of Depreciation Client Logistic related Finance & Controlling related A Company Code is a unit for which legal financial statements must be prepared. The Controlling Area is the business unit where Cost Accounting is carried out. Sales Organization is the central organizational element that controls the terms of sale to the customer. Distribution Channel is the element that describes through what channel goods and/or services will be distributed to the customer. Personnel Area HCM related
- 13. SAP Financials Components General Ledger Accounting Accounts Payable Accounts Receivables Asset Accounting Cash & Bank
- 14. SAP Financials Components General Ledger Accounting Accounts Payable Accounts Receivables Asset Accounting Cash & Bank
- 15. General Ledger Master Data The GL master record controls how business transactions are recorded and processed by the system. Specific control checks are assigned in GL master Data which are triggered at the time of transactional posting.
- 16. General Ledger Accounting The General Ledger (G/L) contains records of all posting-relevant business transactions in General Ledger accounts. In order to get a better overview, the general ledger frequently contains only collective postings. The individual posting data is recorded in sub ledgers, which update the general ledger in summarized form. The central task of General Ledger accounting is to provide a comprehensive picture of external accounting and accounts. General Ledger Accounting serves as a complete record of all business transactions. It is the centralized, up-to-date reference for the rendering of accounts. Actual individual transactions can be checked at any time in real-time processing by displaying the original documents, line items, and transaction figures at various levels.
- 17. SAP Financials Components General Ledger Accounting Accounts Payable Accounts Receivables Asset Accounting Cash & Bank
- 18. Accounts Payable Master Data The master record contains data that controls how business transactions are recorded and processed by the system. It also includes all the information about a vendor that you need to be able to conduct business with him. Vendor master data is used by both the accounts and purchasing department in an organization.
- 19. Accounts Payable Accounts Payable component records and manages accounting data of all vendors. It is also an integral part of the purchasing system, where deliveries and invoices are managed according to vendors. Postings made in Accounts Payable are simultaneously recorded in the General Ledger where different G/L accounts are updated based on the transaction involved (such as payables and down payments). The system also maintains forecasts and standard reports that can be used to keep track of all the open items.
- 20. Process Flow-Accounts Payable Process Flow for Accounts Payables Material Management AccountsPayable Raise Purchase Requisitions Create PO with reference to PR Goods Receipt Posting Invoice Verification Payment to Vendor Clearing of Vendor Start End
- 21. SAP Financials Components General Ledger Accounting Accounts Payable Accounts Receivables Asset Accounting Cash & Bank
- 22. Accounts Receivables Master Data The master record contains data that controls how business transactions are recorded and processed by the system. It also includes all the information about a customer that you need to be able to conduct business with him. Customer master data is used by both the accounts and sales department in an organization.
- 23. Accounts Receivables Accounts Receivable component records and manages accounting data of all customers. It is also an integral part of sales management. All postings in Accounts Receivable are also recorded directly in the General Ledger. It also provides the data required for effective credit management.
- 24. Process Flow-Accounts Receivables Process Flow for Accounts Receivables Sales&DistributionAccountsReceivable Raise Sales Order Post Goods Issuance Billing Documents/ Invoice Direct billing document can also be raised in FI Receipts from Customer/ Collection Start End Clearing of Customer ledger
- 25. SAP Financials Components General Ledger Accounting Accounts Payable Accounts Receivables Asset Accounting Cash & Bank
- 26. Asset Accounting Asset Accounting covers the entire life of the asset from the purchase order or initial acquisition (which can be managed as an asset under construction) right through to retirement of the asset. Between these two events, the system handles all asset- related business transactions and ensures integration with the general ledger.
- 27. Process Flow-Assets Process Flow for Asset Accounting Material Management AssetAccounting Raise Technical Purchase Requisitions for Asset Create PO with reference to PR Good Receipts posting/ Capitalization Asset can also be directly capitalized Asset retirement as and when required Start End
- 28. SAP Financials Components General Ledger Accounting Accounts Payable Accounts Receivables Asset Accounting Cash & Bank
- 29. Cash Journals The Cash Journal is a sub ledger of Bank Accounting. It is used to manage a company's cash transactions. The system automatically calculates and displays the opening and closing balances, and the receipts and payments totals. You can run several cash journals for each company code. You can also carry out postings to G/L accounts, as well as vendor and customer accounts.
- 30. Bank Master Data House Bank and Account ID Creation Check lot Maintenance
- 31. Integration Points Integrated with Material Management Integrated with Sales & Distribution Integrated with Human Capital Management Integrated with Controlling
- 32. SAP Controlling
- 33. SAP FICO Organizational Structure Company Code Business Area Client Controlling Area Cost Center Profit Center Chart of Accounts Chart of Depreciation
- 34. SAP FICO Organizational Structure Company Code Business Area Client Controlling Area Cost Center Profit Center Chart of Accounts Chart of Depreciation Controlling Area: Controlling area is the central organizational unit in CO module. It represents a closed system for cost accounting purposes, where costs and revenues can be managed.
- 35. SAP FICO Organizational Structure Company Code Business Area Client Controlling Area Cost Center Profit Center Chart of Accounts Chart of Depreciation Cost Center: Organizational unit within a controlling area that represents a location where costs occur. Cost Center Hierarchy: Cost Center Hierarchy is a tree structure for grouping all cost centers which belong to a controlling area.
- 36. SAP FICO Organizational Structure Company Code Business Area Client Controlling Area Cost Center Profit Center Chart of Accounts Chart of Depreciation Profit Center: Organizational unit within a controlling area that represents a location where revenues occur. Profit Center Hierarchy: Profit Center Hierarchy is a tree structure for grouping all profit centers which belong to a controlling area.
- 37. SAP Controlling Processes PlanningMaster Data Actual Posting Period End Closing Reporting Determine and enter the planned values. E.g., Plan values for Cost Elements, Cost Center, profit center etc. Internal Order Planning Complete allocation of actual figures to the respective cost object. Monthly/Quarter ly/Annual Activity Cost Element Cost Center Internal order Profit Center Monitor actual figures out of upstream systems and modules (FI,SD, HR, etc.). Allocate actual figures to the respective cost Object. Execute reports for Management.
- 38. Controlling: Cost Element Accounting Cost Element Accounting allows Controlling costs and revenues that incur in an organization, serves as an interface between Financial Accounting and Management Accounting and ensures that FI and CO are reconciled.
- 39. Controlling: Cost Center Accounting Cost Center Accounting serves as a tool for monitoring overhead costs and assigning them to the particular location at which they occurred in line with their source. In Cost Center Accounting, Cost Centers can be created according to different department. It helps to achieve the following objectives:- Assigning costs to Cost Centers in a Cost Center hierarchy lets you determine where costs are incurred within the organization. Planning the costs at Cost Center level will help to check the cost efficiency at a particular Cost Center through variance analysis report.
- 40. Controlling: Cost Center Accounting SAP AG 1999 Cost Centers and the Standard Hierarchy H1000: CoCd 2000 H1: IDES Europe H1000: CoCd 1000 H1120: Internal ServicesH1120: Internal Services 1110 Executive Board1110 Executive Board H1010: InternalH1010: Internal H1200: Finance & Admin.H1200: Finance & Admin. H1210: Admin.H1210: Admin. 1200 Cafeteria 1000 Internal services H1200: Finance & Admin. 1110 Executive Board Processing cost centers
- 41. Controlling: Internal Orders Internal order management is the most detailed operational level of cost and activity accounting. Internal orders can be real or statistical. Real 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 and to the final settlement. E.g. Asset Under Construction. Statistical Order is purely for Statistical purpose for Management Analysis purpose. E.g. To analyze vehicle maintenance cost
- 42. Controlling: Profit Center Accounting Profit Center Accounting is used for analyzing internal profit of the company. Profit Centers represent organizational sub-units that operate independently on the market and bear responsibility for own costs and revenues. In other words, in Profit Center accounting a company is divided in to Profit Center according to the companies’ requirement e.g. Profit Centers can be setup according to product (product lines, divisions), geographical factors (regions, offices or production sites) or by department.
- 43. Controlling: Profit Center Accounting SAP AG 1999 H1 IDES EuropeIDES Europe H1010H1010 Vehicles 1110 Model R1100 H1000H1000 StockStock ProductsProducts H2000H2000 Corporate H1110H1110 Motorcycle H1120H1120 Bicycles 1220 Model RX7 1000 Model BX4 1210 Model MX3 1200 Model CV2 H1200H1200 2100 Seats H1210H1210 Bike Parts H1220H1220 Sportwear 2200 Shirts H1230H1230 Helmets 2300 Motorcycle Helmets H1300H1300 Sales & Marketing H1400H1400 Techical Department Accessories The Profit Center Standard Hierarchy 9000 Corporate Admin 9010 Corporate Finance
- 44. Controlling: Profit Center Accounting A1 LtdA Ltd HQ 1000 Cost Centers Cost Center A Cost Center B Company Codes Cost Center C Cost Center D Controlling Area Controlling Profit Center Profit Center Profit Center Profit Center Profit Center Profit Center Profit Center Profit Centers
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