2. SAP Over All Finance Presentation.pptx

sap FiCo

1. SAP OVER VIEW Finance & Controlling (FICO) for POWER O&M Company ENDEAVOUR TECHNOLOGIES, INDIA

2. Financial Accounting / Controlling Financial Accounting Legal / Statutory Accounts ( External Reporting) Standard Ledgers, Sub Ledger’s Master Data Integrates with Controlling Controlling Management Reporting (Internal Reporting) Budget and Planning Management

3. FI - Finance GL – General Ledger Accounting AP – Accounts Payable AR – Accounts Receivable AA – Asset Accounting BA – Cash & Bank Accounting PCA – Profit Center Accounting Financial & Controlling Components

4. Data Flow in Finance Asset Accounting AA Accounts Payable A/P Accounts Receivable A/R Cash & Banking BA G/L Finance Payroll/Employee Transactions Goods Receipt /Issues & Invoice Receipt Revenue Direct Posting in FI MM FI/ AR HCM PM Data from PM is not directly flown in to Finance it will be flown through MM

5. Revenue Books of Accounts CO General ledger FI GL FI AA FI AP FI HCM FI BA FI AR MM Balance sheet P&L ... ... ... HCM PM Profit Center Accounting PCA AR

6. Financial Accounting Sub Modules General Ledger: All business transactions (primary postings, settlements from controlling module) are recorded in an integrated business software system. This guarantees that the accounting information is complete and reconciled at all times. Accounts Payable : It is a sub ledger of vendors which records all business transactions of suppliers. Much of its data is obtained from procurement (Materials Management). Accounts Receivable : It is a sub ledger dealing with customers recording all business transactions of customers (including sales, payments, advance) Asset Accounting : FI-AA records all accounting transactions relating to the management of assets as per legal and management requirements by which we can know the Net Book Value of assets. Net book value= Total value of the Asset - Depreciation Bank Accounting : This component is used to handle accounting transactions that you process with your bank. It includes the management of bank master data, cash balance management (check and bill of exchange management), and the creation and processing of incoming and outgoing payments . Profit Center Accounting : It is basically management oriented and is used for internal controlling purpose to analyze both revenues & Costs. And it acts like company in company, and we can generate Financial statements at this Level.

7. CO – Controlling CEA – Cost Element Accounting CCA – Cost Center Accounting PS – Project Systems Controlling Components

8. Data Flow in CO FI AA Personnel Cost (HCM) Asset Accounting Profitability Analysis CO- PA Product Costing CO- PC Overhead Cost Controlling COST CENTER’S CO- CCA Controlling Plant Maintenance Orders Goods Receipts and Issues G/L Expenses MM CO- PCA CO HCM PM Profit Center Accounting Internal Order CO – IO Project Systems PS

9. Overhead Cost Overhead Cost Controlling Controlling Profit Center PrCtr 1 PrCtr 3 PrCtr 2 PrCtr 4 PrCtr 5 Cost & Revenue Element Accounting Cost Center Acc . Activity Cost PM Order & Internal Orders Profit Center Profit Center Accounting Accounting CO Integration with Other Modules Revenue Posted through FI/AR

10. Overhead Cost Controlling Plant Maintenance Cost Center Acc. Overhead Order Accounting PM Order Activity Types FI AA FI MM PM HCM MM Profit Center Acc Profit Center PrCtr PrCtr 1 1 PrCtr PrCtr 3 3 PrCtr 2 PrCtr PrCtr 4 4 PrCtr PrCtr 5 5 Cost & Revenue Element Accounting CO Integration with Other Modules

11. Document Database Vendor Customer Human Resources Fixed Assets Material Subsidiary Ledger General Ledger Controlling Cost Elements Cost Center Internal order Profit Center Accounting Controlling - Integration

12. Controlling - Sub Modules Cost Element Accounting: Cost and Revenue Element Accounting details which costs and revenues have been incurred Cost Center Accounting: Cost Center Accounting determines where costs are incurred in the organization. To achieve this aim, costs are assigned to the sub areas of the organization where they have the most influence (Cost Centers) Internal Order: Overhead Orders are internal orders used either to monitor overhead costs for a limited period, or overhead incurred by executing a job, or for the long-term monitoring of specific parts of the overhead. Independently of the cost center structure, internal orders collect the plan and actual costs incurred, enabling you to control the costs continuously

13. Project Systems The Project System consists of Project and WBS elements. A Project is a complex structure of tasks within a Controlling Area. It is used to control and monitor the schedule, resources, capacities, cost, revenues, and funds availability. A WBS (Work Breakdown Structure) element is an individual structural element representing the hierarchical organization of a Project. It describes either a concrete task or a partial one that can be further subdivided.   Implication: WBS elements are defined at client level under a Project. And can be use for Monitoring and Control of Expenditure (both for Planning and Budget Controls)   Usage: WBS elements are used for Capital Investments and Operating expenditure, which are settled to Cost Centers (P&L) or Fixed Assets (B/S).

14. PROJECT CAPEX Project 1 CAPEX Project 2 CAPEX Project 3 WBS Element 1 WBS Element 2 Purchase Requisition/ Purchase Orders GR Actual Cost Commitment Cost Partial Settlement Asset Under Construction (AUC) Final Asset Final Settlement Planning & Budgeting CAPEX Investment and Project System Process

15. Detailed Overview FINANCE And CONTROLLING Finance . . SAP ECC CO BUDGET MANAGEMENT

16. Budget Management The budget is the approved cost structure This Budget Management can be used based on Budget Object group or Account. Budget Management can also be done through Project Systems and Internal Orders

17. Budget Management The Budget Management for Balance Sheet Items and P & L Items We can maintain the budget based on Budget Items and use the same in PR and PO’s for Procurement of Inventory and Operating Expenses. We can also maintain the Budget based on the GL accounts also. The Budget Management with Project Systems. The budget can be maintained for Capital Expenditure as well as Operating Expenditure In this Case of Capital Expenses the entry will be settled to the Asset and in the Case of Operating Expenses the expenses will be booked on to P&L Items The Budget Management with internal Order. As mentioned above in Project Systems the same can also be done through Internal Order. Where in the final settlements can be posted on to Asset or Expense Account.

18. Finance Integration with Other Modules Materials Management SAP ECC FICO FICO INTEGRATION

19. FINANCE INTEGRATION S U P P L I E R C U S T O M E R S A P ECC Procurement Plant Maintenance Service Finance and Accounting MM PM FI/AR FI CO Business Process Flow in Power O&M Plant Process Flow Human Resource HR

20. FINANCE INTEGRATION PM MM FI CO Revenue AR/FI FI Planned Requirement MRP Requirement on component level Purchase Order Goods Receipt Invoice Verification Accounts Payable Planned PM Order PM Order PM Order C ompleted PM Order Settlement Calculation of Invoice Amount Accounts Receivable Invoicing for Fixed/Variable Fee

21. MM Overview Materials Management SAP ECC MM MATERIALS MANAGAMENT

22. MM Overview Material Requirement Planning External Procurement Purchasing Material/Spares Received from Owner (Zero Value) Invoice V erification Goods R eceipt INVENTORY MANAGEMENT Goods I ssue Transfer Posting Warehouse Management Accounting For Good/ Invoice Receipt Accounting Entry will be posted Good Issue to Cost Center (Inventory will be Cr. & Consumption Acc Dr. ) Good Issued to PM Order (Inventory will be Cr. & Consumption Acc Dr. ) Goods Issues for Repairs Order (Goods Sent out for Repair..and Received back) Goods Scrapping (Inventory Cr. … Scrapping Acc Dr.)

23. A/P(Vendor) GR/IR X X A/P(Vendor) X Cash/Bank X Purchase Requisition (MM ) Purchase Order (MM) Goods Receipt ( MM) Invoice Verification (FI/MM ) Vendor Payment (FI) Inventory X GR/IR X MM & FI INTEGRATION

24. PM Overview Plant Maintenance . . SAP ECC PM PLANT MAINTNANCE

25. Plant Maintenance Inspection : All measures which establish the actual condition of a technical system Preventive Maintenance : All measures which M aintain the ideal condition of a technical system Break Down Maintenance : All measures which Restore the ideal condition of a technical system Other : M easures taken using the maintenance organization

26. Controlling Integration with Plant Maintenance Cost Components 1. Stock Material/Spares Issue(Consumption) 2. External(Non Stock) Material/Spares (Consumption) 3. Internal Services (Man Power) 4. External Services 5. Miscellaneous In Case of Points 1 and 2 the Cost will be derived from the Material or Spare, and in case of Point 4 and 5 the cost will be posted on to PM order based on the Service procured. In case of Point 3 Internal Services (Labor) the cost will be derived form the Activity Type.

27. Controlling Integration with Plant Maintenance Find below the List of Activity Types maintained in Power Plant Maintenance and Operations. Activity Types :- 1.    Mechanical Man Force    Mechanical Supervisor - LMESU       Mechanical Engineer - LMEEN        Mechanical Skilled Labor – LMESK 2.   Electrical Man Force        Electrical Supervisor - LELSU        Electrical Engineer - LELEN    Electrical Skilled Labor - LELSK 3.    Instrumentation Man Force Instrumentation Supervisor - LINSU Instrumentation Engineer – LINEN Instrumentation Skilled Labor – LINSK Separate Activity Rate Per hour will be maintained for the each Activity Type, based on the Activity Hours amount of Internal service will be automatically calculated and charged to the PM Order.

28. Text Cost Display in the Plant Maintenance Order Maintenance Order Internal Processing ( Internal Labor ) Op. 10: ME 3hrs . (Mechanical Labor) Op . 20: EL 1hrs . (Electrical Labor) External Processing ( Externa l Services ) Op. 30: External 1hrs. Stock material ( Internal Material/Spares :- Owner /Procured ) 2 pcs . Material ABC Non-stock-material ( External Material/Spares ) 2 pcs . Material XYZ Costs Internal Processing: 300 External P rocessing : 75 Stock M aterial : 200 Non-Stock-Material : 300 Total Cost of PM Order: 875 The Amount will be calculated based on the Activity type Rate Maintained in the system.

29. Plant Maintenance - Overview Create Work Orders Notifications Planned Work Orders Schedule WO’s Spare Parts /Supplies Labor Preventive/Predictive Maint. WO’s Close & Sett PM Order Reporting Special Tools Pre-defined work steps Emergencies External Services Material Requisitions Shop Papers

30. Planning the Activity Type (CO) PM Order Consumption:- Internal Labor/Material(Spares) (PM ) Confirmation of the PM Order once the Activities are Completed (PM) Once the PM Order is Technically Completed the Actual Costs will be Calculated (PM) Settlement of the PM Order to COST CENTER ( FI/CO) PM & FICO INTEGRATION

31. HCM Overview Human Resources SAP ECC HCM HUMAN CAPITAL MANAGEMENT

32. Cost Center Updation in Employee Masters (HCM/CO) GL Account Assignment to the HCM Wage Types (Accounts for Basic Salary, HRA, Transport..and also Provisions and Deductions ) (HCM/FI) Execution of the Payroll in HR (In this Process HCM Business Owner’s will update the Attendance and Ru n the Payroll, system will calculate the Amounts based on the attendance and Over time as applicable . (HR) Release of Payroll in to Accounting (Under this Process HCM Persons, on checking and confirmation of the Amounts In the Payroll will release the document’s to Accounting (HR) Finance GL Accounts Updation (GL accounts will be updated once the Payroll document’s are released to Accounting, based on the GL assigned to the respective Wage types.. ( FI ) HCM & FICO INTEGRATION

33. Payroll results 3,500 Salaries 3,000 350 35 Expenses Legal Deductions Salaries payable Legal Deduction Payable Payables CO CO FI FI Cost center 1 Cost center 2 3,500 150 Salaries Conveyance Posting document Posting Payroll Results in Accounting Posting Document Posting Run Execution Payroll Run in HCM HCM Conveyance Deductions 15

34. Detailed Overview FINANCE & CONTROLLING Finance . . SAP ECC FI FINANCIAL ACCOUNTING

35. Organizational Structures Management Accounting (Profit Centers/Cost Centers) Financial Accounting Internal Logistics ( MRP) (Maintenance Activities) Inventory Management Organizational Units Client Controlling Areas Company Codes Plants Purchasing Organizations Valuation Areas Storage Locations/Batches/Special Stocks

36. Components of FI FI-GL FI-AR FI-AP FI-AA General Ledger Accounts Receivable Accounts Payable Asset Accounting FI-BA Cash & Banking

37. The Components of FI Configuration Organizational Structures Company Codes Profit Center Organization of Accounting Ledger/Sub-ledger Chart of Accounts Credit Control Setting Credit Limits Master Records G/L Accounts Customers Vendors Banks Chart of Depreciation Depreciation Areas Assets Extended General Ledger Functionality Documents/Transactions Fiscal Year Posting Adjustments Payment Terms Balance Sheets/Income Statements Foreign Currency Closings Taxes On-Line Display Special G/L Transactions Interest Calculation Planning Correspondence Payment Program Fixed Assets Reporting Analysis Legal Consolidations Modules General Ledger Accounts Payable Accounts Receivable Asset Accounting Cash Management and Forecast Treasury

38. General Ledger (FI-GL) Integrated with other application modules and FI Sub-modules Financial Data Entry Multiple Currencies Multiple Ledgers (Books of Accounts) Budgeting /Planning :- Based on Group/ GL Accounts User-defined Balance Sheet / Profit and Loss Statement Flexible Report Generator

39. GL - Business Transaction Chart of Accounts Fiscal Year Variant Document entry GL Account Posting Park document Post with clearing General Posting Change Document Reverse Document Clear Reset Clearing Document Recurring Document Periodic Processing

40. Chart of Accounts A Chart of accounts provides a framework for the recording of values to ensure an orderly rendering of accounting data. Chart of Accounts General Ledger Account Account Group Expenses:- Maintenance Expenditures Operating Expenditure Administration Expenditures Personal Expenditures Sales & Marketing Exp Other Expenditures Incomes:- Revenue Other Revenues Liabilities:- Share Capital Reserves & Surplus Secured Loans Unsecured Loans Current Liabilities Provisions Assets:- Fixed Assets Investments Current Assets Loans & Advances Inventory Accounts

41. Primary Cost Elements Primary Cost E lement External O rder settlement Secondary Cost E lements Internal activity allocation Assessment Overheads Internal order settlement Revenue Elements Revenue element Sales deduction Revenue account Expense accounts Accounts posted to directly, such as bank accounts Accounts posted to indirectly, such as reconciliation Accounts; AR, AP, AA Balance sheet Accounts P & L A ccounts G/L A ccounts FI FI CO CO The GL Accounts/ Cost Element

42. GL - Reports Chart of Accounts General Ledger Account List Document Journal List Display Account Balances Display Account Line Items Budget/ Plan Actual Comparisons Reports Balance Sheet / Profit & Loss / Cash Flow Statements Actual / Plan Comparison Actual / Actual Comparison

43. Accounts Receivable (FI-AR) Real-time integration with the General Ledger Customer Invoice Processing Automatic Dunning Function Correspondence with Customer Credit Management Work Flow Approval Process for Customer Invoice Processing

44. Accounts Receivable Accounting Invoices and Credit memos Down Payments From Customer Handling Incomming payments Payment Run (Bank collection) Dunning Account Clearing Credit Control Management Volume Details from Plant Invoice Preparation Payment Transactions Dunning Notice Invoice Posting/ A/R Accounting Document Cash Management Account: Customer

45. Volume of Power Generated during the Month Calculation of Variable Fee from the above details Preparation of the Invoice for the Month with below Details Fixed Fee Variable Fee Other Expenses incurred on behalf of Customer X Customer (A/R) Revenue Invoice Postings Invoice Sent to Customer X Receive Payment from Customer Customer ( A/R ) Cash/Bank X X Accounts Receivable Accounting

46. AR - Reports Document List Customer Master List Display Customer Balances Display Customer Open / Cleared line Items Due Date Analysis for Open items Invoice/ Credit Memo Printing

47. Accounts Payable (FI-AP) Real-time integration with General Ledger Integration with Materials Management (MM Module) as a part of the Procurement Cycle Vendor Invoice Processing : with/ with out PO Vendor Down Payment Processing : with/ with out PO Vendor Correspondence Budget Approval Process while PO and PR based on Group or General Ledger Accounts. Work Approval Process for Vendor Invoice Processing

48. Accounts Payable Accounting Purchase Order Goods Receipt Payment Transactions Payment Program Cash Mgmt & Forecast Date Cash Mgmt & Forecast Date Invoice Receipt/ Invoice Verification Cash Management Account: Vendor Invoices and Credit Memos Down Payments Automatic Payment Run ( with creation of payment media) Outgoing Payments Manual Bank Reconcilation Account Clearing

49. A/P(Vendor) GR/IR X X A/P(Vendor) X Cash/Bank X Purchase Requisition (MM ) Purchase Order (MM) Goods Receipt (MM) Invoice Verification (MM) Vendor Payment (FI) Inventory X GR/IR X Accounts Payable Accounting Budget Control Approval Process Approval Process

50. AP - Reports Document List Vendor Master list Display Vendor Balances Display Vendor open / cleared line Items Due Date Analysis for open items Payment List Check Register Vendor Invoice Payment/ Debit Memo Printing Vendor Down Payment Printing

51. Fixed Asset Accounting (FI-AA) Real-time integration with the General Ledger. Batch Processing and posting of Depreciation expense, interest and replacement values. Integration with: Material Management ( MM ) - Procurement of Asset through PO Project Systems ( PS ) – Using WBS element for Asset Acquisition. Accounts Receivable ( FI-AR ) - Retirement/Sale of Asset Accounts Payable ( FI-AP ) – Procurement of Asset Cost Accounting ( CO ) – Every Asset is Assigned to a Cost Center (Depreciation Posting )

52. AA – Business Transactions Postings Acquisition Capitalize Asset under construction Transfer Retirement Post Capitalization Periodic Processing Depreciation run Fiscal year change Year end closing

53. Asset Accounting is a subsidiary ledger of Financial Accounting. The appropriate General Ledger accounts are updated each time you post. AA as Sub- Ledger Asset Master Vendor Assets ( GL) Liabilities General Ledger 1000 1000 1000 1000

54. PROJECT CAPEX Project 1 CAPEX Project 2 CAPEX Project 3 WBS Element 1 WBS Element 2 Purchase Requisition/ Purchase Orders GR Actual Cost Commitment Cost Partial Settlement Asset Under Construction (AUC) Final Asset Final Settlement Planning & Budgeting CAPEX Project System’s Module

55. AA - Reports Asset Register Asset Explorer Acquisitions Retirements Transfers Depreciation Asset Balance

56. Cash & Banking CASH Cash Journals In SAP we have Cash Journal Module to maintain all the Petty Cash Transaction in the Organisation. BANKING Payments & Receipts Outgoing Payments : We have two Options in out going Payments. . Automatic Payment: In this Process the System will pick the invoices based on due date an d Payment Terms mentioned in the Vendor invoice. . Manual Payment : In this Process the Invoice’s will be picked randomly and Payment will be made Incoming Payments : We have two Options in Incoming Payment. . Automatic Receipt : This process will be used when we post the incoming Payment through Bank Statement upload in to the SAP. . Manual Receipt : In this Process the Incoming payment will be booked as and when we receive the payment from Customer .

57. Cash & Banking Bank Reconciliation For Bank Reconciliation, in SAP we have three options Automatic Process:- In this Process the Reconciliation will be done by uploading the Bank Statement in to SAP. Manual Process:- In this Process the Reconciliation items will be manually selected and then the Reconciliation entries will be posted in the system. Semi Automatic:- In this Process the Reconciliation items will be listed by the system and only we need to select the Reconciliation items by seeing the Bank Statement and then the Reconciliation documents will be posted on to the System.

58. Cash & Bank Reports CASH The Cash Flow Statements can be designed as per business Requirement Cash Book /Cash Journal can be prepared on line. BANKING Report on Incoming and Out Going Payments Bank Reconciliation Report Cheque Register Reporting:- Cash Journal Cheque Register Cash Flow Statement Bank Payment and Receipts Reports

59. Detailed Overview FINANCE & CONTROLLING Finance . . SAP ECC CO CONTROLLING

60. Components of Controlling Cost Element Accounting Cost Center Accounting Profit Center Accounting

61. Organizational Unit’s & Master Data Cost Centers Mech . Maintenance Elect . Maintenance Company Codes Orders Cost Objects General Admin Opera . Dep Other Cost Objects Controlling Area Controlling Area Power Plant Desal Plant XYZ Plant ABC Plant Head Office ( Corporate Office) Profit Centers (Plant / Business Unit) COMPANY CODE

62. Controlling Area : It is an organizational unit which represents closed system for cost accounting purposes. Cost Centers : Organizational unit within a controlling area that represents a clearly delimited location where costs occur. You can make organizational divisions on the basis of functional and/or responsibility-related standpoints Profit Center : An organizational unit in Accounting that reflects a management-oriented structure of the organization for the purpose of internal control Used to plan, collect and settle the costs of internal jobs and tasks Controlling – Overview

63. Overhead Cost Management The Overhead Cost Controlling component (CO-OM) helps you to plan, allocate, control, and monitor overhead in your organization By planning in overhead areas, you can develop standards, that allow you to control costs and valuate internal activities. Cost Centre Accounting Cost Centre Accounting analyzes where overhead occurs within the organization Costs are assigned to the sub-areas of the organization where they originated. SAP offers a wide variety of methods for allocating posted amounts and quantities. Internal Order Accounting Internal Orders collect and analyze costs based on individual internal jobs. SAP can monitor and automatically check budgets assigned to each job.

64. Overhead Cost Overhead Cost Controlling Controlling Profit Center PrCtr 1 PrCtr 3 PrCtr 2 PrCtr 4 PrCtr 5 Cost & Revenue Element Accounting Cost Center Acc. Activity Cost Revenue Posted through AR PM Order & Internal Orders Profit Center Profit Center Accounting Accounting CO Integration with Other Modules

65. Overhead Cost Controlling Plant Maintenance Cost Center Acc. Overhead Order Accounting PM Order Activity Types FI AA FI MM PM HR MM Profit Center Acc. Profit Center PrCtr PrCtr 1 1 PrCtr PrCtr 3 3 PrCtr 2 PrCtr PrCtr 4 4 PrCtr PrCtr 5 5 Cost & Revenue Element Accounting CO Integration with Other Modules

66. Cost Element’s A cost element classifies the organization's valuated consumption of production factors within a controlling area Primary Element - costs that originate outside the company; relate directly to the income statement in FI and must be included in the FI Chart of Accounts Secondary Element - costs that result from internal allocation activities; NO relation to G/L accounts in FI. These accounts are exclusively for cost accounting and are only maintained in CO

67. Financial Accounting General Ledger Accounts Payable Accounts Receivable Fixed Assets Bank Accounts Controlling Cost Centre Accounting Internal Orders Cost Elements v/s GL Accounts Chart of Accounts Balance Sheet Accounts Adjustment Accounts Cost Elements Secondary Cost Elements Income Statement Accounts Primary Cost Elements No Balance Sheet Accounts in Controlling All primary cost elements linked to Income Statement Accounts No Secondary Cost Elements In Financial Accounting

68. Cost Center Accounting (CCA) Responsibility Accounting for Overhead Costs Depending on business Reporting design and Requirements the Cost Center’s will be Created. The Cost Centers will be Assigned to Profit Center We can maintain the Planning values based on the Cost Element and Cost Center

69. Cost Center Accounting - Actual Postings In actual cost postings, costs are mapped real-time into CO from the module where the original posting took place. FI - Posting of primary costs through FI. Assignment to cost object at time of FI posting. AA - Assignment of asset master made to cost center. Post to cost center at time of depreciation or gain/loss calculation automatically. MM - Goods receipt can be assigned directly to cost object The original document in FI and a parallel document in CO that displays the data from a cost accounting viewpoint Transaction based postings - Re-post Costs Re-post Line Items Manual Cost Allocation Direct Activity Allocation Sender Activities Statistical Key Figure

70. Cost Center Accounting – Period end Closing For the purpose of Overhead Cost Controlling, final costing and the preparation of reconciliation period-end closing is usually executed on a monthly basis. At End of the Month all the Costs in the Cost Object’s need to be Settled to the Cost Center Example:- PM Order, Internal Order, Project etc…

71. Cost Center Accounting – Reporting The information system within Cost Center Accounting enables to evaluate planned and actual data according to various selection criteria. Online information available The report tree can be used to select reports in the information system. It is the central collection point and hierarchical outline of all the reports in an application component. The system provides many standard reports. Comparison reports Line item reports Planning reports Report for activity prices Master data reports Reports for variance analysis Document display Individual reports may be defined using the report painter.

72. Profit Center Accounting (PCA) Part of Enterprise Controlling module. Performs profit and loss analysis by- Region (plants, branch offices) Function (production, sales) Product (product line, product division) Entries posted on to Profit Center will happen as below - Entries to P&L Item will be posted based on the Cost Center - Entries to the Balance Sheet Items will be posted based on the derivation rules or Document Splitting Rules.

73. EC - PCA – Reporting The information system within Profit Center Accounting enables to evaluate planned and actual data according to various selection criteria. The report tree can be used to select reports in the information system. It is the central collection point and hierarchical outline of all the reports in an application component. User defined reports may be defined using the report painter. The system provides many standard reports. Comparison reports Line item reports & summary reports Planning reports Master data reports

74. Detailed Overview FINANCE & CONTROLLING Finance . . SAP ECC FI/CO PERIOD END ACTIVITIES

75. Close Close G/L G/L FI FI Close Close AR/AP AR/AP FI FI Month End Closing Process Old Month New Month Foreign currency valuations FI FI Open new Open new periods periods FI FI Accruals/ deferrals, recurring entries FI FI Payroll expenses HR HR Maintain GR/IR MM MM In voices SD AR/FI Valuations MM MM AUC settlement, depreciation, interest AA AA Month Month - - end end closing closing MM MM Project/ WBS Element CO CO Cost C enters CO CO PM Order Settlement PM Financial statement adjustment FI FI Controlling CO CO FI Documentation Revenue/Purchases Balance Sheet Profit & Loss Internal reports CO

76. ã Year End Closing Process Old Year New Year Close FY for Close FY for AR/AP AR/AP FI FI GR/IR analysis, regrouping of receivables/ payables, other adjustments Lowest value, LIFO/FIFO MM MM Valuations, investment grant AA AA Physical inventory MM MM PM Order Closer/Settlement PM Balance confirm. FI FI FI FI Balance Balance carryfoward carryfoward FI FI Open new Open new year year FI FI Fiscal year Fiscal year change change AA AA Close FY Close FY for G/L for G/L FI FI Close old Close old year year AA AA FI Revenues/purchases Documentation CO Account bals : Old FY to new FY FI FI Asset history sheet Bal . Sheet/ P&L Cum. bal . audit trail Internal reports

77. THANK YOU