SAP FI-CO Demo

Training Session 1

Dec 03, 2014

Trainer : K. Ram
 Agenda
• Introduction to SAP R/3
• Modules in SAP R/3
• Integration of Modules
• Business Processes : what are they ?
• Financial Accounting basic settings
• Enterprise structure
• Key abbreviations and what they mean
• New GL
Introduction to SAP R/3
– Overview of the company
– What is ERP ?
– Evolution of ERP ?
– What does R/3 mean
Introduction to SAP
1972 1981 1991

1972

SAP formed by 5 ex
IBM Employees

Company called Systems Analysis and Program Development

1981
Company product is an integrated
application software

Company name changed to Systems Applications and Products in Data Processing

1991
Company launches SAP R/3

3 Tier Architecture : Y2K Compliant

 Introduction to SAP
1991 1997 2003

Release Features enhanced

3.0D
ECC Core
Release 5.0
3.0F

Release
Release
4.7
3.1H

Release Release
4.0B 4.6C
Industry solution maturity
2003 onwards Release
EHP = Enhancement Packs 4.5
SP = Service Packs (bug fix)
Introduction to SAP
2003 2004 2010 2014

SAP NetWeaver

People Integration  Self services (portal)

Composite Applications

 Internet sales
Information Integration  Composite Applications
 Industry solutions
Process Integration  Enterprise Extensions

Application Platform
 SAP ECC Core (5.0)

mySAP ERP 2004

Introduction to SAP
2000 2006 2010 2014

SAP NetWeaver
Industry solutions (28)

SAP ECC
SAP SRM
SAP CRM
SAP SCM
SAP ERP

SAP ERP 6.0 / ECC

Modules in SAP R/3
SCM MDM XI PLM

SRM SD FI BW

CRM MM CO KM
ECC 6.0
PP AA
+
DOC
mySAP Mgmt

QM + PS

PM Business Suite WF EP

ABAP
HR IS EIS
4
Web
Basis MI BPS
AS
Modules in SAP R/3 : Biz Process
Modules in ECC 6.0 - Overall
FI-CO : Submodules (Upto ECC 5.0)
FI-CO : Submodules (ECC 6.0)
FI (Finance)

GL General Ledger, Closing & Reporting, Posting, Financial Information System, Business Area

Accounts Receivables, Posting, Credit management, Risk management, Financial information

AR
system, Business Area

Accounts Payables, Posting, Credit management, Risk management, Financial information

AP
system, Business Area

Asset Accounting, Closing & Reporting, Posting, Lease Accounting, Financial Information
AA
System, Business Area

BL Bank Accounting, Electronic Bank Statement, Posting, Financial Information System

TV Travel Management, Posting, Financial Information System

FI-CO : Submodules (ECC 6.0)
CO (Controlling)

Cost element accounting, Reconciliation ledger, Master data, Periodic tasks, Information
CEL
system - reporting

Cost center accounting, manual postings, period end closing, year end closing, information
CCA
system - reporting

Internal Orders, master data, planning, Commitments management, Funds commitment,

OPA
Manual actual postings, period end closing, information system - reporting

Activity based costing, master data, process planning, manual actual posting, period end
ABC
closing, ABC information system - reporting

Product cost planning, cost object controlling, actual costing, material ledger, product cost
PC
controlling, information system - reporting

Structures, Master data, planning, flow of actual values, information system – reporting,
PA
Technical aspects – segments, index, drill down reports, physical structure
 FSCM : Financial Supply Chain Management

Biller Direct & Dispute

Biller Management
Consolidator Collections
management

Finance Mgmt Mgmt

Cash Dispute
Working market credit Invoicing Collecting Payments
Projection cases
Capital risks risks

In-House Cash
Treasury and Risk
Management

Cash and Liquidity

Management

mySAP CRM mySAP ERP

Business Processes :
What are they ?
Business process : e.g. Order to Cash

Incoming
Controlling Profitability
Orders Costing
Accounting
Forecast

Sales & Incoming Goods Electronic

orders issue Billing
Distribution

Credit Customer
Accounting Credit revenue revenue Dunning &
Payment
review Collections
(GL Ledgr) (GL Ledger)

Cash Cash
Treasury Cash Electronic
liquidity liquidity
Positioning banking
forecast forecast
Enterprise Structure - overall

Client

Chart of Accounts Chart of Depreciation

Operating Concern

Controlling Area Company Asset Classes

Credit control area

Company Code

MM Module

Plant

One to many relationship

Storage location
Enterprise Structure – example
J&J = Johnson & Johnson – Pharma Company
Client-555
(J&J)-Pharma

Operating Concern : JJ00 Chart of Accounts –JJ10 Chart of Depreciation – JJ00

J&J Group of Companies (J&J)-Pharma J&J – Pharma Group of Cos.

Controlling Area : JJ10 Company – JJ10 Asset Classes – 2000

J&J Pharma (J&J)-N/America : Holding Co Buildings – across J&J

Credit control area : JJ00

Company Code – JJ10 J&J Pharma - CCA
(J&J)-Pharma

MM Module

Plant-Mfg : JJ10
J&J : NJ Pharma Mfg

Storage location - 100 One to many relationship

J&J Raw Material 100
Financial Accounting basic settings
General Ledger

FI-
GL
Reconciliation Accounts Reconciliation Accounts

Balance Sheet

P&LAccount

Assets Banks Vendor

Customer

FI- FI- FI- FI-

AR AA BL AP

Display business transactions Parallel accounting principles (US GAAP, IAS)

Money and value flows Key figure analysis
Display and valuation of positions Group consolidation
Display of profits / losses
Enterprise structure definitions
How calendar year links to fiscal year for company code is called Fiscal Yr Variant
Fiscal Year Variant How many periods per fiscal year is defined, special periods (K4 = 12 posting periods + 4
special periods). You may choose either calendar year or other period (say April – March)

Time period (usually a calendar month) how documents are posted in a company code
Posting period For a fiscal period upto 366 posting periods may be specified using Special Purpose Ledger.
Special periods are used for period closing, audit adjustments, etc

User defined ledgers may be defined for reporting purposes. May be general ledgers or
Special purpose
subsidiary ledgers with various account assignment objects such as account, cost center,
ledger
business area, profit center. It does not impact other SAP functions

You use a posting period variant to specify which posting periods are open, control feature
Posting period
You assign them to a company code(s).
variant
You may control selective range of GL accounts for posting, if required

Represent business transactions for Vendors, Customers, Assets, Bank, Cash Journal, Material
Sub-ledger
Each subledger is separate for representing detailed values for above (A, D, K, M, B, Cjournal)

Defines whether it is a debit or credit posting, and which account type (customer or vendor)
Posting Keys is posted.
SAP provides multiple combination of Dr / Cr posting keys for posting Inv, JV, CN separately

Transactions posted into SAP are identified thru document types

Document types
These are called out separately : Vendor Invoice, Credit Note, Journal Voucher, Sales Invoice

For each document type, separate number ranges are prescribed

Number range for
Each number range has a from & to range
documents
e.g. Invoice (IN) may use Number range 01, beginning from ‘1000000’ to ‘1999999’
Enterprise Structure : Account groups
Enterprise Structure : Sub-ledgers

Sub-ledgers
A : Assets (AA)
D = Debtor (AR)
K = Kreditor (AP)
M = Material
Bank
Cash Journal

Sub-ledgers
General Ledger link is thru separate Reconciliation Accounts in General Ledger
Enterprise Structure : Document types

Document type
To separate documents used for each process area
Enterprise Structure : Posting keys

Posting Key
Denotes “Debit” or “Credit” indicator
Key abbreviations : what they mean
Key abbreviations : what they mean
Key abbreviations : what they mean
New GL – general features
Special Purpose Special purpose ledger features are provided in Gen Ledger : Additional reporting fields –
Ledger + General Segment, Functional Area
Ledger

Real time integration The CO postings to CCA are in parallel to FI-GL making reconciliation a thing of the past
of FI, CO Additional postings to CO are not required

Makes available multiple ledgers, muti currency reporting for

Multiple ledgers -US GAAP - Local GAAP
- IFRS Reporting - Additional Ledger (say Tax Ledger)

Generally document posted in Leading Ledger posts into ‘other ledgers’ defined
Parallel Accounting Facilitate posting directly to ‘other ledgers’ in case of local requirements / group reporting
True multi-currency reporting thru parallel accounting in additional ledgers

Ledgers – Parallel Accounting

New GL : extended data structure

Extended data structure : additional ‘custom fields’ may be defined in New GL Accounting

General Ledger New GL

Field ….. Description Field ….. Description

… … … … ….. …….
BUKRS … Company Code BUKRS … Company Code
RYEAR … Fiscal year RYEAR … Fiscal year
RACCT … Account number RACCT … Account number
RBUSA … Business Area RBUSA … Business Area
… … ……. COST_ELEM Cost Element
… … ……. RCNTR Cost Center
… … ……. PRCTR Profit Center
… … ……. RFAREA Functional Area
… … ……. RBUSA Business Area
… … ……. SEGMENT segment to Seg. Reporting
… … ……. … … …….
… … ……. … ….. …….

Database tables : GL and New GL – fields for comparison

New GL – general features (contd..)
For each document posted into the New GL, two views are available :
 Document View
 General Ledger View

Document splitting functionality is possible

 It is possible to split values in a document at a line item by each account assignment object,
e,g, ‘Segment’

A segment is a characteristic by which each enterprise may conduct its business.

 it may be a line of business (profit center)
 it may be a geography (geolocation)
 it may be a combination of profit center and geo location

Document splitting enables a complex display of documents.

 Line items are split here for selected dimensions, enabling complete financial statements for
such selected dimensions at any time.

Using the document splitting procedure, you can also create a segmented display of a (partial) balance sheet
according to a legal requirement (for example, IAS) or according to areas of responsibility.
New GL : Multiple document view, Document splitting
Example of posting a document for Business transaction :
 Vendor invoice posted for $10,000
 Expense need to be assigned to two Segments A, B
The document may be viewed either in Document entry view or Ledger view

Doc. Number : 120000157 Company code : JJ10 Fiscal Year : 2014

Doc. Date : 06/06/2014 Posting Date : 06/06/2014 Period : 06

Ccode Item PK Account Name Amount Curr Fnc/Area CCtr Segment

1000 1 31 1000 Vendor X 10,000 USD
Document view
2 40 417000 Service 4,000 USD 0400 1050 SEG A
3 40 417000 Service 5,000 USD 0100 2050 SEG B
4 40 154000 Use tax (Input) 1,000 USD

Doc. Number : 120000157 Company code : JJ10 Fiscal Year : 2014

Doc. Date : 06/06/2014 Posting Date : 06/06/2014 Period : 06

Ledger : 0L
Document : : 120000157 Fiscal Year : 2014 Period : 06
Ccode Item PK Account Name Amount Curr Fnc/Area CCtr Segment
1000 1 31 160000 Accts Payable 4,400 - USD SEG A
General Ledger view 1000 2 40 417000 Service 4,000 USD 0400 1050
1000 4 40 154000 Use tax (Input) 400 USD
0.00 USD SEG A
1000 1 31 160000 Accts Payable 5,600 - USD SEG B
1000 3 40 417000 Service 5,000 USD 0100 2050
Document split by Segment 1000 4 40 154000 Use tax (Input) 600 USD
0.00 USD SEG B