ACC FI Training

SAP Training
Finance Module
1
Table of Contents
• SAP Overview
• SAP Organization Structure
• Org. Elements in Finance and Controlling
• Finance Module
2
SAP FICO Training
Day 1
3
SAP Overview
4
SAP Overview
MM
SD FI
FI
Sales &
Materials Financial
Distribution
Mgmt. Financial
Accounting
Accounting
QM CO
CO
SAP
MM
Quality
Materials Controlling
Controlling
Mgmt.
Financial Accounting
PM
QM
R/3 HR
WF
Human
Quality
Plant Mainte- Workflow
Mgmt.
nance Resources
PP
PM SD
IS
Product Sales &
Plant Mainte-
Planning Industry
Distribution
nance Solutions
5
SAP Overview
q The FI Application module is designed for automated management
and external reporting of general ledger, accounts receivable,
accounts payable, and other accounts with a user-defined chart of
accounts.
FI
qAsset Accounting component is used for managing and supervising
fixed assets. It serves as a subsidiary ledger to FI providing detailed
information on transactions involving fixed assets.
q The CO module is designed for cost controlling, product costing,

profit center accounting .
CO q Functions support management reporting, monitoring and planning
areas of responsibility.
6
SAP Overview
q The Materials Management (MM) application module is used
MM for procurement and inventory management. It can for
instance be used for creating requisitions, purchase orders,
goods receipts and invoice processing.
q The Sales and Distribution (SD) module is designed to
improve the efficiency of the tasks and activities carried out in
SD the customer order management cycle.
q Tools of managing the information on sales calls, sales
orders, inquiries, quotations, shipping and billing.
qThe Production Planning (PP) application module is used to

PP
plan and control the manufacturing activities of a company.
7
SAP Overview
q The Plant Maintenance (PM) application module supports the
PM planning, processing, and completion of plant maintenance
tasks.
qThe Quality Management (QM) application module is a

quality control and information system supporting quality
QM
planning, inspection, and control for manufacturing and
procurement.
qThe Human Resources (HR) application module is a

HR complete integrated system for supporting the planning and
control of personnel activities
8
SAP Overview
The Client Principle in R/3
Hardware
SD FI
Sales & Financial
Distribution Accounting
CO
MM
Controlling
PP Materials
Mgmt AM
AM
R/3
Production Asset Mgmt
Planning
R/3-
QM Client / Server PS
Quality
Quality Project
Mgmt PM ABAP/4 WF
System
Plant Main- Workflow
tenanceHR IS
System Clients
Human Industry
Resources Solutions
Development Sand
Delivery Client (000 & 001)
box
You can have different clients Test

Production Client (ex. 777)
for different purposes.
Data can be moved via transport Production
and corrections from one client
to another.
9
SAP Overview
Logging on to the R/3 System
U ser System H elp
SAP R/3
Log off New password
Client
User
Password
Language
iwdf4042 OVR
ã SAP AG1999
10
SAP Overview
Screen Elements
Command field Menu bar Standard toolbar
Menu Edit Favorites Extras System Help

Options
System function name : Activity Title bar
Status setzen
Application toolbar
Input field Input field
Overview
1st selection
Tab
2nd selection
3rd selection
4th selection
Radio button Green light; positive
Yellow light; neutral

5th selection
Display Change
This screen is made
up of various screen
elements. It does not
exist in the system.
1st selection 2nd selection 3rd selection
Checkboxes
Execute Pushbutton
Message I42 (1) (400) iwdf4042 INS Status bar

ã SAP AG 1999
11
SAP Overview
Selecting Functions...
M enu Edit Favorites Extras System Help
Create session
SAP Easy Access End session

User profile
Other menu Create menu A ssign users Documentation
Services
Favorites Utilities
S AP standard m enu List
W orkflow
Links
… using Private notes

Own spool requests
Favorites or the Own jobs
tree structure Short m essages

Status...
Log off
… using the m enu path
/nFD03
… using the technical nam e

(transaction codes)
ã SAP AG 1999
12
SAP Overview
Field Help - F1, F4
D isplay C ustom er: Initial Screen
Display
D isplay C ustom er: Initial Screen
Display Custom er: Initial S creen
Custom er 1000 B ecker B erlin
F1
Com pany code 1000 IDE S
F4
Restrict Value Range
Help - Display Customer: Initial Screen R estrictio ns
Custom er account num ber C ustom e r

A unique key is used to clearly identify the custom er C om p an y co de
within the S AP system. C om p an y n am e
C ity
P rocedure C urre ncy
W hen creating a customer master record, the user
either enters the account num ber of the custom er or
R estrict n um b er to N o restrictio n
has the system determ ine the number when the
record is saved, depending on the type of num ber
assignm ent used..
Possible
Ap plica tion h elp T ech nical info
entries H it list
M essage FD03 iw d f4042 INS
ã S AP AG 1999
13
SAP Overview
System Functions - User Profile
User Edit Goto System Help
Maintaining your user profile
User MUSTER
Last changed by ADMIN 01.01.2000 12:00:00 Status Saved
Address Defaults Parameters
Start menu
Logon language
Output controller Decimal notation

1.234.567,89
1,234,567.89
1 234 567,89
Output immediately
Delete after output Date format
DD.MM.YYYY
Personal timezone MM/DD/YYYY
MM-DD-YYYY
YYYY.MM.DD
CATT YYYY/MM/DD
I42 (1) (400) iwdf4042 INS
14
SAP Overview
15
SAP Overview
Data Types in R/3 Purchase Order
Transactional Data:
1
q A document is created for every business transaction
and activity is recorded in SAP. 2
q Transactional data is the business information.
q For instance purchase order, goods receipt,
accounting posting.
Master Data:
q Master data is core information that is shared across Master
applications. Data
q For instance customer, material, vendor, and asset
data.
Table Data (Customizing):
Plant PlntSection PersResponsiblePhone
q Table data is the data that is specially 1000 010 Weber 1757
configured for the business and controls the 1000 100 Meyer 1964
2000 100 Schultz 7566
operations in the system. 3000 100 Levy 2637
q For instance payment terms, tolerance
settings, pricing condition tables.
16
SAP Overview
q Master data refers to data records that are held for a long period of time in the
database. Master data includes for example customers, suppliers, materials and
accounts. Master data may be used across modules.
q Master data contains information that is always used in the same way. For example the
master data of a cost center: the name, the person responsible and the hierarchy area
remains the same over the time the cost center is used.
q Most of the master data is assigned to organizational units. For example customer master
data shares the sales and distribution and financial accounting data. One customer
master record may be assigned to the following organizational units:
q Company code General Data

(cross-company)
q Sales organization Master Data
q Distribution channel (For example, customer
Accounting Data
master data) (relevant for company
q Division code only)
Sales and
Distribution Data
17
SAP Overview
Reports
q R/3 reports provide transaction-level data.
Financial Reporting
q Reports are organized by application using report trees. Profit & Loss Statement
Balance Sheet
q R/3 contains standard reports for each area, but reports can be P&L year to year comparison
customized to meet specific company requirements. Balance Sheet y-to-y comparison
q Reports include drill-down, sorting and summarizing features and can be

downloaded for the use in other applications, e.g MS-Excel.
Types of reports
q Standard reports q ABAP/4 reports
q Reports delivered with R/3 to meet q Customized reports for particular
standard reporting needs. reporting needs.
q ABAP/4 queries q Report painter / writer

q Provide basic lists, sorted and totalled q An ABAP/4 coded generator, which
by various criteria. allows the end user the opportunity to
define report rows and columns for
customized reporting.
ABAP/4 = Advanced Business Application Programming Language
18
SAP Organization Structure
19
Importance
• The SAP organizational structure serves as the basis for the legal and
operational environment.
• The organizational structure determines how data flows through the system
and is tracked and reported.
• Functional areas(SD, MM, PP, FI/CO) can define certain organizational
elements independent from other functional areas.
• Certain organizational elements can cross many functional areas.
Organizational design decisions in one functional area may impact other
areas.
• An integrated design of the SAP organizational structure is necessary for
proper integration of all functional modules; integrated design decisions can
be influenced by functional requirements in order to fit all company needs.
• Once the organizational structure is defined for Go-live, modification may be
risky or impossible.
20
Drivers for decision making on Organization

Structure
• Ease of conducting transactions on SAP
• Reporting
– Flexibility
– Easiness
• Authorizations
– Access control
• Scalability
• Ease of master data maintenance
• Statutory Requirements
21
Client is a commercial,
organizational unit within
the R/3 system, with its
own data, master data,
and set of tables
• From a business
perspective, the client
forms a corporate group
• Standardized data across
the client
– Vendor number and name
– Customer number and
name
– Material number and
description
– General ledger
22
Org. Elements in Finance and
Controlling
23
Org. Elements in Finance and Controlling
CLIENT
CONTROLLING CONTROLLING
AREA AREA
COMPANY COMPANY COMPANY

CODE 01 CODE 02 CODE 03
24
Controlling Area
• SAP Definition
– A Controlling Area identifies the main self-contained, organizational
element from which cost and managerial reporting can be obtained.
– It contains the common cost accounting configuration for all companies
within it. All companies within the controlling area must have the same
chart of accounts. It represents the operational reporting structure
(internal) of an organization
– Highest reporting level under cost center accounting, across which
information can shared and viewed.
• SAP Characteristics
– A Company Code is assigned to one Controlling Area, but a Controlling
Area can have more than one Company Codes assigned to it.
– This organizational unit defines the groups of companies for which the
cross company analysis may be performed.
25
Client
Chart of Accounts
Controlling Area Controlling Area

Company Company
Profit
Center
Profit Profit
Center Center
Cost Cost
Center Center
26
Chart of Accounts
• SAP Definition
– The chart of accounts provides a control framework to record financial
business transactions undertaken by an organization. It is a master of
the GL accounts required by business
– Each company is assigned to one chart of accounts. More than one
company can be attached to one chart of accounts.
27
Company Codes
• SAP Definition
– Company code refers to the legal entity, where the Balance Sheet and Profit
and Loss Statements are required by law.
– Each Company Code has a country and language key , uses one local
currency & is attached to one chart of accounts.
– A Company Code equals a legal entity. It cannot be removed after financial
postings have taken place.
28
Profit Center
• SAP Definition
– A profit center is a management-oriented organizational unit used for
internal controlling purposes. Dividing your company up into profit
centers allows you to analyze areas of responsibility and to delegate
responsibility to decentralized units, thus treating them as "companies
within the company".
– Profit Center group is a group of profit Centers
– Profit Centers are grouped in hierarchies that allow measurement of
performance by Profit Center or Profit Center Group.
– A Profit Center receives and consolidates costs from one or more Cost
Centers.
29
Cost Center
• SAP Definition
– A cost Center is a responsibility unit within a company and is the lowest
level at which costs need to be controlled and analysed
– Generally, a cost Center must have a person responsible for controlling
and managing costs incurred in the cost Center
– Cost Centers and Cost Center Groups can be summarized for the
purpose of reporting cost information in a required manner. This is
done through maintaining cost centers in a hierarchical manner
– A Standard Hierarchy which must include all Cost Centers must be
maintained in a Controlling Area
– Each company must have its own set of Cost Center codes
30
Learning Checkpoint
§Can a company code be assigned to more than one Controlling

Area?
§Should all the Company Codes attached to one Controlling Area

have the same Chart of Accounts?
§What is a Cost Center? How is it different from Profit Center?
31
Finance Module
32
FI/CO Overview
Financial Accounting (FI)
The FI application module is designed for automated management
of accounts receivable, accounts payable and general ledger
accounts with a user-defined chart of accounts
•
•
General Ledger Accounting
Accounts Receivable
FI
• Accounts Payable
• Asset Accounting
• Closing and Reporting
Controlling (CO)
The objective of the integrated CO application module
is to represent the company’s flow of cost and revenue
•
•
Profit Center Accounting
Cost Center Accounting
CO
• Product Costing
• Internal Order Accounting
33
FI/CO Overview
• Data Flow in FI
SD Sales Revenues
PP Production Orders
MM Purchase Orders
HR Personnel Cost
G/L FI
A/R A/P A/M

Accounts Accounts Asset
Receivable Payable Management
34
FI/CO Overview
FI G/L Expenses Data Flow in CO
MM Purchase Orders
SD Billing
PP Production Cost
AM Asset Management
HR Personnel Cost
CO Controlling
CO- CO- CO- CO-

CCA PC OM PCA
Accounts Accounts Asset
Receivable Payable Management
35
FI/CO Overview
SAP Process Integration Overview –
Finance Management /Accounting & Reporting
FINANCIAL FINANCIAL MANAGEMENT

ACCOUNTING (FI / AM) REPORTING (FI) REPORTING (CO)
COST CENTER
SD ACCOUNTS
ACCOUNTING (CCA)
RECEIVABLE
INTERNAL ORDER
ACCOUNTING (OPA)
GENERAL
MM ACCOUNTS LEDGER
PAYABLE ACCOUNTING
PROFIT CENTER
ACCOUNTING (PCA)
ASSET
MANAGEMENT
PRODUCT COSTING
36
FI/CO Overview
Features of SAP Financial Accounting
• Produces legally required balance sheets and profit and
loss statements
• Automatically updates General Ledger when sub-ledger
(AP and AR) items are posted
• Processes outgoing payments efficiently while
maximising cash discounts
37
FI/CO Overview
Features of SAP Controlling
• Controlling module is used for internal analysis and
management of costs
• Controlling includes both cost center and profit center
accounting and internal order functions
• Actual expenses will be processed real-time. This
results in cost centers being immediately updated when
actual costs are processed
• SAP offers a flexible reporting system which fulfils the
wide-range of requirements for cost center reporting
38
FI/CO Overview
SAP Terminology: The Document Principle
SAP R/3
As a guide-line, each
business transaction
is stored as a document
39
FI/CO Overview
• Documents Header
– Each business transaction in
SAP is stored as a ‘document’
– Each document is assigned a Line Items 2 - 999
unique document number (Note:
number ranges are assigned for specific
transactions)
– Document structure consists of
header data and two or more
line items
40
FI/CO Overview
Document Header
Line Item 1
Line Item 2
Automatic Line Item
• Document Header - contains general data applying to

the entire document: • Document type
• Posting data • Currency
• Document number
• Line Items - Two or more line items (and at most 999)
containing
• Posting key (debit or credit key)
• Account number
• Amount
41
FI/CO Overview
42
FI/CO Overview
• Posting Keys are two-digit numerical keys that control

how line items are entered / reported
Standard Posting Keys

21 Credit Memo
25 Outgoing Payment
31 Invoice
40 Debit
50 Credit
70 Asset Debit
75 Asset Credit
43
FI/CO Overview
Posting Key is the two character numerical key entered in the line item.
The posting key determines:
• Account type
• Debit/Credit Posting
• Layout of entry screen
SAP delivers prefixed posting keys with the standard system.

Some of the posting keys in the standard system:
POSTING KEY DESCRIPTION
• 01 Customer Invoice
• 11 Customer credit memo
The posting Key specifies which account types you can post to. A
posting key can only Be entered for one account type which is permitted for
that document type.
44
FI/CO Overview
Document Types
Document types have been already defined in the standard system.
Some of the important document types are:
Document type Description
• AB General Document
• DG Customer credit memo
• DZ Customer Payment
• DR Customer Invoice
• SA All G/L Account
The document type specifies which account types you can post .
45
FI/CO Overview
46
FI/CO Overview
47
FI/CO Overview
• Automatic Posting
MM SD
48
FI/CO Overview
Learning Checkpoint
•Do we need to reconcile the Sub-ledgers with the General Ledger?
•What is the maximum number of line items in a FI Document?
•What is the use of Posting Key?
•What does the Document Type determine?
•Is there a restriction that only one Finance Posting period can be
open at a point of time?
49
SAP FI – General Ledger Accounting
The main purpose of general ledger accounting is to record

business transactions and to report results by preparing
financial statements
Master Records
Sales and Accounts

Distribution Receivable
General Ledger
Materials Account Posting

Management Accounts Payable
Reporting
Balance Sheets
P&L Statements
50
General Ledger Account Groups

Account Groups are classifying feature of GL account. The
account group assists in screen display. Each master record must
be assigned to Account group. Accounts that require the same
master record fields and use the same number interval are created
with the same account group.
Account Groups
AS - Fixed Assets
CASH - Liquid Funds A/Cs
GL - General G/L A/Cs
MAT - Materials Management A/Cs
PL - Income Statement A/Cs
51
G/L Master Record – Chart of A/Cs Segment

• G/L account master records contain 2 segments
COA contains data

Chart of Accounts that is common for all
company codes using
this COA
Company Codes
Contains data that is

unique to the
requirements of a
specific company code
52
Concept of Retained Earnings account

This account is created for the year end closing run
where the all P&L items are posted to the specific
account mentioned in this field.
53
Tolerance group
When we clear open items in GL the difference during
clearing is debited or credited in a separate Expense
or Income account based on the tolerance given to
that particular account.
54
Field status variant
In this activity we can define field status variants and groups. We
group several field status groups together in one field status
variant. We assign the field status variants to a company code in
the activity Assign Company code to Field Status variants. This
allows us to work with the same field status groups in any
number of company codes. We can also define and process field
status groups. We must define a field status group in the
company code specific area of each GL account. The field status
group determines which fields are ready for input, which are
required entry fields, and which are hidden during document
entry. You cannot enter a field status group in the customer or
vender accounts (sub ledger). Field status groups are
determined for customer and vendor accounts from their
respective reconciliation accounts, via the GL account number in
their master records.
55
SAP FI – General Ledger Accounting`
56
Open Item Management (Clear GL document)

The items in an account must be cleared by other
items in the account. The sum of the items involved in
the clearing procedure must be zero. As a result, the
account balance always results from the sum of the
open items.
57
Financial Statement version

Versions are created to provide row and hierarchy
structure to the Profit and Loss account and Balance
sheet. We can define versions for a special chart of
accounts, for a corporate chart of accounts or without
any special allocation. We assign groups of accounts
to the items at the lowest levels of the hierarchy. In a
financial statement version, you define the format for
displaying your accounts. You assign your accounts
hierarchically in a tree structure.
58
Complete Documents
Only documents with a balance of zero from the debit and
credit items and with all required fields completed can be
posted
Document Type Document Date
Total Debits Posting Date
-
Total Credits
Posting Key
0
Amount
GL account number
59
Parked Documents
A document can be parked if all the required information is
unavailable
Incomplete
Not enough information
Document
60
Recurring Documents
Business transactions that are repeated regularly are called
recurring documents. These can be posted with a specific
frequency in SAP
3rd
15th
11 12 1
10 2
9 3
8 4
7 5
6
12th 20th
...Jan...Feb...Mar...Apr...May...Jun...Jul...Aug...Sep...Oct...Nov...Dec...
61
G/L Account Analysis
• The ability to call up and display the GL account

balances is referred to as ‘GL Account Analysis’
62
Exercises
• GL 1 : Create GL Accounts
• GL 2 : Create a Reconciliation Account
• GL 3 : Park a Document
• GL 4 : Edit Parked Document
• GL 5 : Post GL Documents
• GL 6 : Display / Change Document
• GL 7 : GL Account Analysis
• GL 8 : Reverse Documents
• GL 9 : Clear Line Items
63
Learning Checkpoint
• What is the main Purpose of General Ledger Accounting?
• What do you mean by Reconciliation Account / Special

Reconciliation Account?
• What is the difference between Open Item managed Account and

Account with Line Item Display?
• Why should someone park a document?
64
Summary
• The main purpose of general ledger accounting is to record
business transactions and to report results by preparing financial
statements
• Accounts that require the same master record fields and use the
same number interval are created with the same account group
• A GL Account contains two segments – Chart of Account segment

and Company Code segment
• The Sort Key determines the value to be populated in the

Allocation/ Assignment field.
65
Questions?
66
SAP FI – Accounts Payable
Business
• Real-time integration with general ledger Transaction
• Integration of purchasing and accounting
via invoice verification
Date Explanation DR CR
• Preliminary posting and tracking of invoices 11/15/95 Accounts Payable 500
Cash 500
• Management of one-time accounts
• Online processing of payment
proposal General Ledger
• National and international General Ledger

Cash
payment processes Accounts Payable
• Down payment processing Reconciliation Account
Purchase
• Internal controls
Order
3-Way Match
Goods
Payment
Vendor Receipt
Invoice
67
SAP FI - Accounts Payable
68
Transactions with Vendors
• Vendor’s account is created in the system for conducting transactions
relating to purchase of materials and services
• Order to payment cycle for raw materials, packing materials, consumables
etc. will be handled by the Material Management (MM) module of SAP.
– Therefore vendor’s provisional liability will be credited through MM
module when goods are received, subject to invoice verifications
(wherever required)
• Vendor’s account will also be impacted through Finance Module for
purchase of items that do not take the MM route like
– House-keeping articles, Stationery etc.
– Fixed Assets
– Services like security etc.
69
Reconciliation Accounts
• Reconciliation Account is SAP term used for “Control Account” as understood in
traditional accounting parlance
• Reconciliation Account imbibes the concept of Self Balancing Ledgers between the
– Main General Ledger and Sub Ledger containing the vendor balances
Special GL Indicator
• Special GL indicator enables tracking payments which are not of the regular nature of
a vendor transactions (normal transactions defined as those crediting Vendor
Account)
– E.G. 1 - Advance Payment To Vendor Is Entered With Special Gl Indicator In
The Screen
– E.G. 2 – Bills Payable
• This category of transactions with a special GL indicator is given a separate GL
Control A/c (other than those used for routine transactions like Vendor purchase)
70
Tax Deduction at Source
• The Critical Pre-requisite for Initiating a TDS Entry Is to Define the Vendor
in the Master As TDS Applicable Vendor
– Consequence – Tax Is Deducted at the Specified Rate for Every
Transaction With Vendor
• To Pay the Tax Into Govt. Treasury, SAP Generates a Payment Voucher
and Challan on Due Date
• On the Specified Date, SAP Generates a TDS Certificate for Printing to be
sent to Vendors
• SAP Stores All TDS Information and Generates Annual Return Also
71
Payment Terms
• Payment terms are defined in the vendor master

– These indicate the due date for payment of vendor. Due date is computed from
the date on invoice
• Payment terms also indicate the discount
72
• Accounts payable keeps track of vendors and vendor
transaction data
Accounts Payable
General Ledger
Invoices
Account Posting
Credit Memos
Reconciliation
Account Summary Data
Recurring Entries
Payments
Cheque
Reconciliation
Detailed Data
73
Invoice Verification
transaction data
PURCHASE GOODS RECEIPT INVOICE
ORDER
PAYMENT
74
Payment Program
• The payment program is designed so that outgoing

payments can be processed efficiently while maximizing
discounts
The payment program maximizes cash discounts for outgoing payments
75
Integrated Business Process Overview
Procurement
FI
G/L
G/L COS /
GRIR/Exp Vendor
Inventory/
ense AP Payment
GRIR
Invoice
Material
Quantity and Purchase
MM Value Invoice
Requirement
Purchase Invoice
for Goods/ Goods Receipt
Order Verification
Services
Financial and Managerial Reporting and Analysis
76
Exercises
• AP 1 : Create Vendor Master Record
• AP 2 : Post Vendor Invoices
• AP 3 : Post Vendor Credit Memos
• AP 4 : Post Outgoing Payments
• AP 5 : Vendor Line Item Display
• AP 6 : Vendor Confirm Changes
• AP 7 : Display Documents
77
Learning Checkpoint
• When an invoice is received from a vendor, what does the system

do automatically for each transaction that has occurred?
• If the invoice, purchase order and goods receipt do not match, will
SAP block the invoice from payment until the variance can be
identified?
• Which are the two segments of the Vendor master Records?
78
Summary
• Real time integration with General Ledger.
transaction data.
• All postings in AP are also recorded directly in the
General Ledger. Different G/L accounts are updated
depending on the transaction involved
• On Verification of Invoice the system immediately
updates a GL account for each transaction that has
occurred.
79
Questions?
80
SAP FI - Accounts Receivable
Overview of Accounts Receivable
Invoice
Incoming payment
Advance, down
Invoicing/ payment, deposit
credit memo and Bill of Exchange
Bad debts
Reports
81
Business scenarios and exercises
¶ Customer Master File and Credit Master

¶ Invoice posting in Accounts Receivable
¶ Advance payment/down payment
¶ Collections Received
¶ Bad debt
¶ Receivable reporting
¶ Reports
82
• The Accounts Receivable application 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. Different G/L accounts
are updated depending on the transaction involved (for
example, receivables, down payments, and bills of
exchange).
• Accounts Receivable is not merely one of the branches
of accounting that forms the basis of adequate and
orderly accounting. It also provides the data required for
effective credit management, (as a result of its close
integration with the Sales and Distribution component),
as well as important information for the optimization of
liquidity planning.
83
The Customer account group controls
• The type of number assignment used for the account

number
• A number interval from which the account number is

chosen. The system uses the account number to identify
the customer.
• Which fields are displayed when you enter or change

customer master data and whether or not an entry must
be made in these fields (field status)
• Whether the account is a one-time account
84
Master records are divided into the following areas so that each
company code and each sales organization can store its own
information for doing business with customers:
• General data : -
This is data that applies to every sales organization in your company. The
general area includes, for example, the customer's name, address,
language, and telephone data.
• Company code data : -

This is data that is specific to an individual company code. Company code
data includes, for example, the reconciliation account number, payment
terms, and dunning procedure.
• Sales area data : -

This is data relevant to the sales organizations and distribution channels of
your company. Data that is stored in this area includes, for example, data
on order processing, shipping, and billing.
85
• Real-time integration with general ledger Business
Accounts
Transaction
Receivable
• Flexible credit management for
accounting and sales Date Explanation DR CR
11/15/95 Accounts Receivable
• Online open item tracing
• Easy management of incoming
General Ledger
payments
COGS General Ledger
• Management of one-time accounts Inventory
Accounts Receivable
• Down Payment Processing Reconciliation Account
Sales
Order
Delivery Note
Receipt of
Invoice
Payment
Picking
Goods Issued Quantity
86
Accounting principle
Sub-ledgers
Customer Account Supplier Account
11.000 11.000
General Ledger
Accounts Receivable Accounts Payable

11.000 11.000
Expense
Revenue
10.000
10.000
Tax Tax
1.000
1.000
87
• Accounts Receivable keeps track of customers and
customer transaction data, and is a vital part of the sales
controlling system
Accounts Receivable/Credit Mgmt
Invoice/Credit Memo
Customer Mgmt General Ledger
Credit Control Mgmt Account Posting

Reconciliation
Account
Collection
Reporting/Inquiry
88 Summary Data
Exercises
• AR 1 : Create Customer Master Record
• AR 2 : Post Customer Invoices
• AR 3 : Post Customer Credit Memos
• AR 4 : Post Incoming Payments
• AR 5 : Customer Line Item Display
• AR 6 : Customer Confirm Changes
• AR 7 : Display Documents
89
Learning Checkpoint
• Which are the segments of the Customer master

Records?
• What is the use of Account Groups?
• How does the function of Dual Control work?
90
Summary
• Real time integration with General Ledger.
• Accounts Receivable keeps track of customers and

customer transaction data, and is a vital part of the
sales controlling system
• All postings in AP & AR are also recorded directly in

the General Ledger. Different G/L accounts are
updated depending on the transaction involved
91
Questions?
92
SAP FI – Asset Accounting
Chart of Depreciation
• The chart of depreciation contains the defined depreciation areas. It
also contains the rules for the evaluation of assets that are valid in a
given country or economic area.
• Each company code is allocated to one chart of depreciation.
Several company codes can work with the same chart of
depreciation.
• The chart of depreciation and the chart of accounts are completely
independent of one another.
93
Depreciation Area
• An area showing the valuation of a fixed asset for a particular
purpose (for example, for individual financial statements, balance
sheets for tax purposes, and so on).
• Depreciation areas are grouped together in to chart of depreciation
• Depreciation Area defines the type of depreciation to be used for the
asset based on business and legal requirements
Example
– Book depreciation
– IT depreciation
Depreciation Key
• Depreciation Keys contain the calculation method for depreciation
working
94
Asset Structuring Levels
Asset- related Classification Balance sheet
structure structure structure
Balance
sheet vers.
Balance
sheet item
1 Group- Asset G/ L
asset num. class accounts
2 Asset
main num.
3 Asset
sub-number 1 Asset group
2 Compl. asset
4 3 Asset comp.
Line items
4 Transaction
95
ASSET CLASS
• In SAP, assets are grouped into different asset classes. For
example, asset class XXX1 refers to Freehold Land, XXX2 refers to
Leasehold Land and XXX3 refers to Furniture and Fittings etc.
• There will be a large variety of assets created under each asset

class. For example, under asset class XXX3, there will be different
types of furniture such as Office work stations, chairs, storage units,
steel safe etc.
• Each asset created under an asset class will have an asset number
automatically assigned to it by the SAP System. Some of the basic
input fields for asset master creation are Description, Quantity,
Inventory No. and so on.
96
Asset Type
– Fixed Assets (general)
– Assets under Construction
• The first step in the AM module is to create the

Asset Master Record (for each asset
individually)
• In SAP, before creating any asset, appropriate
asset class needs to be defined as shown in the
earlier slide
97
Depreciation Calculation
Based on following controlling parameters :
• Depreciation Key
• Internal Calculation Key
• Planned useful life of the asset
• Special Functions’ values such as Scrap Value
98
Acquisition
In-house
Production Purchase
with to clearing to clearing via

Vendor account account, Purchasing
with clearing
autom. offsetting
offsettting entry
entry
99
ENTRY
PK Account Amount TTy AVdate
70 ASSET 1,000 100 9/1/CY
31 VENDOR 1,000
ACCOUNTS
ASSET VENDOR
1,000 1,000
Automatic
entries
Assets Liabilities
1,000 1,000
100
Asset Under Construction
• Asset Under Construction is an ‘asset pending capitalization’
• All purchases relating to such asset are first booked under “Asset
Under Construction (AUC)”
• After all expenses have been fully accounted for the AUC and the
installation report is received by finance, a settlement is done in the
system for converting the AUC into asset/assets
• Depreciation is applicable only in respect of capitalized items from
the date of capitalization which is taken as date on which the asset
has been put to use
101
Retirement of Asset
• Sale of Asset with Revenue with Customer
• Sale of Asset with Revenue without Customer i.e. Scrapping
Transfer of Asset
• Inter-location within Company Code
• Inter-Company transfer
102
Exercises
• AA 1 : Create Asset Master Record
• AA 2 : Asset Acquisition
• AA 3 : Asset Display – Asset Explorer
103
Learning Checkpoint
• Can several Company codes use the same Chart of Accounts

though they have different Chart of Depreciation?
• What does Asset Class Determine?
• What is an Asset under construction?
104
Summary
• Depreciation Area defines the type of depreciation to be used

for the asset based on business and legal requirements
whereas Depreciation Keys contain the calculation method for
depreciation working
• Depreciation can be calculated on the basis of number of shifts
105
Questions?
106

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q The CO module is designed for cost controlling, product costing,

qThe Production Planning (PP) application module is used to

qThe Quality Management (QM) application module is a

qThe Human Resources (HR) application module is a

You can have different clients Test

U ser System H elp

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Menu Edit Favorites Extras System Help

Yellow light; neutral

Message I42 (1) (400) iwdf4042 INS Status bar

M enu Edit Favorites Extras System Help

SAP Easy Access End session

… using Private notes

tree structure Short m essages

… using the m enu path

… using the technical nam e

Display Custom er: Initial S creen

Custom er 1000 B ecker B erlin

Help - Display Customer: Initial Screen R estrictio ns

Custom er account num ber C ustom e r

M essage FD03 iw d f4042 INS

User Edit Goto System Help

Maintaining your user profile

Address Defaults Parameters

Output controller Decimal notation

I42 (1) (400) iwdf4042 INS

q Company code General Data

q Reports include drill-down, sorting and summarizing features and can be

q ABAP/4 queries q Report painter / writer

Drivers for decision making on Organization

COMPANY COMPANY COMPANY

Controlling Area Controlling Area

§Can a company code be assigned to more than one Controlling

§Should all the Company Codes attached to one Controlling Area

§What is a Cost Center? How is it different from Profit Center?

A/R A/P A/M

CO- CO- CO- CO-

FINANCIAL FINANCIAL MANAGEMENT

• Document Header - contains general data applying to

• Posting Keys are two-digit numerical keys that control

Standard Posting Keys

SAP delivers prefixed posting keys with the standard system.

•What is the maximum number of line items in a FI Document?

•What is the use of Posting Key?

•What does the Document Type determine?

The main purpose of general ledger accounting is to record

Sales and Accounts

Materials Account Posting

General Ledger Account Groups

G/L Master Record – Chart of A/Cs Segment

COA contains data

Contains data that is

Concept of Retained Earnings account

Open Item Management (Clear GL document)

Financial Statement version

G/L Account Analysis

• The ability to call up and display the GL account

• What do you mean by Reconciliation Account / Special