FI Overview

Unit 3
Financial Accounting (FI)
- Overview -
SAP Enterprise System
SD MM
Sales and Distribution
FI
Financial Accounting
Materials PP Mgmt. Production SM Planning Service Mgmt.
CO AM
Fixed Assets Mgmt. EC
R/3
HR IS
Controlling
Enterprise Client / Server Controlling QM Integrated Business PS Quality Project Mgmt. Solution System PM WF Plant Maintenance Workflow
Human Resources
Industry Solutions
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SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.
Unit 3, Part 1 Overview

Goals and Objectives Target Audience Components
Managerial Accounting (CO)

Goals and Objectives Target Audience Components
Comparisons and Relationships

January 2008 SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 3
SD MM
FI
CO AM
R/3
HR IS
Controlling
Human Resources
Industry Solutions
January 2008
Goals and Objectives
Financial accounting is designed to collect all of the data needed to support the preparation of financial statements for external users
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Target Audience
Internal
Executives Senior Management Accounts Administration Staff Employees
External
Legal Authorities Banks Auditors Shareholders Insurance Taxing Authorities Media Financial Analysts
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Components of Financial Accounting
Accounts Receivable
(FI)
General Ledger Accounts Payable
Fixed Assets Banks Special Purpose Ledger
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Controlling (CO)
SD MM
FI
CO AM
R/3
HR IS
Controlling
Human Resources
Industry Solutions
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Goals and Objectives

Managerial accounting is designed to collect data for the preparation and analysis of reports for use by internal users
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Target Audience
Executives Senior Management Department Managers Controllers Cost Accountants
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Components of Managerial Accounting
Internal Orders Cost Element Acct Profitability Analysis
Controlling (CO)
Cost Center Acct
Activity Based Costing
Product Cost Controlling
Profit Center Acct
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Comparison
External Accounting
Balance Sheet Profit & Loss Statement
Managerial Accounting
Cost Center Accounting Profit Center Accounting Product Costing Profitability Analysis Different Valuations Flexibility
Legal Requirements Standards
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Comparative Reporting
Liquidity Calculation

External Reporting
Balance Sheet
Retained Earnings Report
Income Statement
Managerial Accounting (CO)

Internal Reporting
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Product Costs Reports
Cost Center Reports
Profit Center Reports
Profit Margin
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Interrelated and Closely Connected

(FI) Transaction Document Amount G/L Account # Cost Center 1900012432 (CO) Transaction Document Cost Center Cost Element 20000657
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Income Statement
Supplies Exp.
100
Bal. Sheet
Bank
100
Cost Center
100
Controlling
SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 14
- The Basics -
Unit 3, Part 2 Overview

General Ledger Chart of Accounts Balance Sheet
Assets Liabilities Equity
Income Statement
Revenues Expenses
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General Ledger
The General Ledger provides a complete 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
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Chart of Accounts
The foundation for the General Ledger is the Chart of Accounts A Chart of Accounts contains a complete list of all of the accounts utilized in the General Ledger for a given company Financial accounting reports are prepared from the balances contained in the General Ledgers Chart of Accounts
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Chart of Accounts (continued)

There are five types of accounts contained in 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
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Balance Sheet Liabilities

Things that a company owes or must provide services in order to settle that accountants have agreed to measure in monetary terms. Examples of these accounts include:
Accounts payable Notes payable Bonds payable Unearned revenue
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Balance Sheet Equity

Equity is simply the mathematical difference between assets and liabilities. Includes the monetary amounts collected with respect to all preferred and common stock transactions, the aggregate net income reported since organization of the company, and a reduction for dividends that have been paid to stockholders.
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Balance Sheet
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Income Statement Revenues

The monetary amounts collected from customers in settlement for goods purchased from our company or services rendered by our firm to them during the current fiscal year.
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Income Statement Expenses

The monetary amounts paid to vendors in settlement for goods purchased by our company or services rendered to our firm by other companies during the current fiscal year.
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Income Statement
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- Organizational Structures -
Business Process Integration
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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
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Unit 3, Part 3 Org Structures Organizational Structures

Client Company Chart of accounts Company code Credit control area
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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
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Client
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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)
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Organizational Structure
Client
Company
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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
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Client
Company
Company Code
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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
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Chart of Accounts
United States Chart of Accounts Canadian Chart of Accounts
Company Code 010

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Company Code 038
Company Code 110
Company Code 117

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Client Chart of Accounts
Company
Company Code
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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
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Client Chart of Accounts Fiscal Year Variant
Company
Company Code
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Credit Control Area

An organizational unit or area of responsibility created to control customer credit limits A company code is assigned to one and only one credit control area Multiple company codes can be assigned to one credit control area
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Client Chart of Accounts Credit Control Area Company Code
Company
Fiscal Year Variant
Client Chart of Accounts Credit Control Area Company Code
Company
Fiscal Year Variant
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.
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Optional Organizational Structures

GM Corp. Chart of Accts Client
GMCorporate Credit CA
General Motors
Corporate Fiscal Year Var.
Consolidation of Company Codes Chevrolet GMC Business Areas Cadillac
Cars
Trucks
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Cars
Trucks Trucks
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Client 100
Credit Control Area Chart of Accounts
Pen Inc.
Fiscal Year Variant
Company Code
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Unit 3 Exercises
21. 22. 23. 24. 25. 26. 27. Create Company Code Create Chart of Accounts Assign Company Code to Chart of Accounts Assign Company Code to Fiscal Year Variant Create Credit Control Area Assign Company Code to Credit Control Area Assign Permitted Credit Control Area to Company Code
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Unit 3

Financial Accounting (FI)

SAP Enterprise System

Materials PP Mgmt. Production SM Planning Service Mgmt.

Unit 3, Part 1 Overview

Managerial Accounting (CO)

Comparisons and Relationships

Financial Accounting (FI)

Materials PP Mgmt. Production SM Planning Service Mgmt.

Goals and Objectives

Components of Financial Accounting

General Ledger Accounts Payable

Fixed Assets Banks Special Purpose Ledger

Materials PP Mgmt. Production SM Planning Service Mgmt.

Goals and Objectives

Executives Senior Management Department Managers Controllers Cost Accountants

Components of Managerial Accounting

Internal Orders Cost Element Acct Profitability Analysis

Cost Center Acct

Activity Based Costing

Product Cost Controlling

Profit Center Acct

Legal Requirements Standards

Financial Accounting (FI)

Retained Earnings Report

Managerial Accounting (CO)

Product Costs Reports

Cost Center Reports

Profit Center Reports

Interrelated and Closely Connected

Financial Accounting (FI)

Unit 3, Part 2 Overview

Chart of Accounts (continued)

Balance Sheet Assets

Balance Sheet Liabilities

Balance Sheet Equity

Income Statement Revenues

Income Statement Expenses

Financial Accounting (FI)

Business Process Integration

Unit 3, Part 3 Org Structures Organizational Structures

Company Code 010

Company Code 038

Company Code 110

Company Code 117

Fiscal Year Variant

Credit Control Area

Fiscal Year Variant

Fiscal Year Variant

Consolidation and Business Areas

Optional Organizational Structures

Corporate Fiscal Year Var.

Consolidation of Company Codes Chevrolet GMC Business Areas Cadillac

Credit Control Area Chart of Accounts

Fiscal Year Variant

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