SAP FICO SUB MODULE WISE PPT_14.10.2015(1).ppt

FiCo

1. FINCANCE
&
CONTROLLING

2. Page 2
Financials vs. Controlling
1
2
3
Page 2

3. SAP FICO CONTENT
FINANCIAL ACCOUNTING BASIC SETTINGS :
oDefine company
oDefine Company code
oAssign company code to company
oDefine Chart of accounts
oAssign Chart of Accounts to Company code
oDefine Fiscal Year
oAssign Company Code to Fiscal Year
oDefine Posting Period Variant
oAssign posting period to company code
oDefine posting period
oOpen and close posting periods
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4. SAP FI(Sub modules overview)
Page 4

5. SAP FI General Ledger Accounting
Purpose:
oThe main task of G/L accounting is the overall presentation of Financial
Accounting. The general ledger is the complete record of all business
transactions.
oThis scenario describes the process by which you define the G/L accounts and
plan your general ledger. It also describes the postings you make in the general
ledger.
oIntegrated with other application modules and FI sub-modules
oFinancial Data Entry
oUser-defined balance sheet / profit and loss statement versions
oMultiple Currencies
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6. General Ledger Overview
Page 6

7. Master Data
Account Groups:
oThe account group determines the number interval from which the account number is
selected when a G/L account is created.
oThe screen layout for creating G/L accounts in the company code-specific area
Maintenance:
Creation at 2 levels:
oChart of accounts data
oCompany code data
Change
Block
Delete
Cost Elements
oCreation
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8. G/L Accounts Integration
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9. SAP FI Accounts Payables
Purpose:
oAccounts payable departments often do more than simply pay incoming bills and
invoices.
oReal-time integration with General Ledger
oIntegration with Materials Management as a part of the Procurement Cycle
oOutgoing Payment Program
oVendor Correspondence
In Accounts Payables having:
oMaster Data
oTransactional Data (Invoice, Credit note, Payments etc..)
oReporting
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10. Structure of the vendor master record
oKey terms for vendor master record consist of:
oGeneral Data: Is data that applies to all company codes such as vendor
address and telephone numbers
oCompany code data/accounting data: Is information specific to
accounting such as payment transaction data and the number of reconciliation
account
oPurchasing data: Is information relevant to purchasing, such as contact
parsons and terms of delivery
oAccount Groups controls:
•The screen layout which is the field that must be populated and the fields
that are optional
•Automatic generation of vendor numbers
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11. Accounts Payables process
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12. Accounts Payables Configuration Steps:
oDefine Account Groups with Screen Layout (Vendors)
oCreate Number Ranges for Vendor Accounts
oAssign Number Ranges to Vendor Account Groups
oCreation of GL Reconciliation Accounts (Sundry Creditors)
oDefine Tolerances (Vendors)
oDocument Types and Number Ranges -OBA7
oCreation of Vendor Master -XK01
oHouse Bank
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13. SAP FI-MM Flow:
oFI-MM Means the financial impact arising out of relevant to the inventory movements
are automatically update in the financial accounting
oMaterial requisition:the production department will send the material requisition
to the stores department then
oPurchase Requisition :The stores department will send the purchase requisition
to the Purchase department then
oComparative Statement : the purchase department will do the call for enquiries
and they will get the quotations and they will do the price comparisons
oRaise PO by Purchase Department : Purchase order consisting of Vendor no.,
Material No., Quantity, Rate, Delivery Terms, Payment Terms etc..
oFI-MM Integration Rule is :
oIn the Material Master we will specify the Valuation Class
oFor Valuation class we will assign GL Accounts based on the nature of
transaction.
oAt the time of material receiptor issuethe stores department person will enter
the material number, Qty, and Movement Type and then accounts will be
updated automatically, based on accounts assignment to valuation class, which
is specified in material master.
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14. Procure to Pay Cycle
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15. SAP FI Accounts Receivable
oTheAccounts Receivableapplication component records and manages
accounting data of all customers. It is also an integral part of sales
management.
oAll 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).
oThe system can use to monitor for open items, such as account analyses,
alarm reports, due date lists, and a flexible dunning program.
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16. Structure of the Customer master record
Page 16

17. General data:
oIt does not depend on the company code or the sales and distribution
organization
oApplies to one business partner for all company codes and in all sales areas and
includes
oCompany names
oAddress
oTelephone numbers
oData that is unique to a customer and shared by all departments
Company code data:
oIt is only applies to one company code (Legal business) this data only relevant
for financial accounting
oIf you edit master record you must specify the customer number and company
code to access the screens containing company code data
oYou can only invoice payer (partner function) if you have entered data in
financial accounting view.
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18. Sales and distribution data:
oThe data for one customer can differ for each sales area. The sales area is a
combination of sales organization, distribution channel and division. Some data
is only relevant to sales and distribution and includes:
oPricing data
oDelivery priority
oShipping priority
oIf you edit customer record you must enter the customer number and sales area
in order to access screens contains the sales and distribution data
oYou can only process the sales and distribution transitions, e.g.: a sales order
after entering the sales and distribution data for a customer
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19. Master data: Partner Functions
Page 19

20. Master Data: Account Groups
Page 20

21. Accounts Receivable process
Page 21

22. Accounts Receivable Configuration Steps
oDefine Account Groups with Screen Layout (Customers)
oCreate Number Ranges for Customer Accounts
oAssign Number Ranges to Customer Account Groups
oCreation of GL Reconciliation Accounts (Sundry Debtors)
oCreation of Customer Master -XD01
oDocument and Number Ranges -OBA7
oBill of Exchange & Dunning
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23. Order to Cash Cycle
Page 23

24. Fixed Assets -Asset Accounting (FI-AA)
oAA Overview:
oAsset Class
oChart of Depreciation
oMaster Data
oCreate/Change Asset Master Record
oAcquisitions
oSettlement of an Asset Under Construction (AUC)
oRetirement
oDepreciation
oTransfers
oPeriod / Year End Closing
oReporting
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25. Asset Accounting Configuration Steps
oCopy Reference Chart Of Depreciation/Depreciation Area -Ec08
oAssign Chart of depreciation to company code -OAOB
oSpecify Account Determination –
oCreate Screen layout rules –
oDefine no. range intervals -AS08
oAsset Class -OAOA
oDefine screen layout for Asset Master –
oDefine screen layout for Asset Depreciation –
oDetermine Depreciation Area in the Asset Class -OAYZ
oCreation of GL Accounts for business transactions wise
oAssignment of Account for Automatic posting -AO90
oSpecific Document type for posting of Depreciation -OBA7
oSpecify Intervals and Posting rules –
oMaintain period control method -AFAMP
oCreation of asset master -AS01
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26. Asset Accounting process
Page 26

27. Account Determination
Using the FI-AA component, you can automatically update all
relevant transactions to the general ledger. These include all
accounting transactions that are posted to assets, and all changes
to asset values that are automatically calculated by the system
(particularly depreciation). This update takes place immediately
online for one depreciation area, or as part of periodic processing
for all other depreciation areas.
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28. Asset Classes
oThe asset class contains default values and control elements which are passed on to
the individual assets when you open a new asset master record.
oBy entering useful default values, you reduce time and effort needed for creating
new asset master records. You also ensure that the records in a given class are
handled uniformly.
oThe asset class is the most important criteria for structuring fixed assets from an
accounting point of view. Every asset has to be assigned to exactly one asset class.
The asset class is used to assign the assets (and their business transactions) to the
correct general ledger accounts. The most important tasks of the asset classes are:
oThe asset class is used to:
osub-classifythe General ledger accounts and
ogroup master records by specific criteria.
oAsset Classes configured:
910000 Land
910001 Building
910002 PlantandMachinery
910003 Vehicles
910004 Assetunderconstruction
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29. Function of Asset Classes
Asset Class
Account
allocation
Screen
layout
Number
assignment
Status of
AUC
Default
values
Assets Liabilities
Asset portfolio
Real estate
Machinery
Finance. assets
Fixtures fit.
. . .
Bal. sheet items
Acct. determination
Asset class
Create
asset
1
Assets
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30. Asset Classes in the Chart of Depreciation
Areas
Depreciation
key
Proposed
useful life
Minimum
useful life
Maximum
useful life
Book dep.
10/00
_
_
DG30
decl-bal.
3 X
Tax dep.
10/00
_
_
SNFG
invest.
support
Group
8/00
_
_
LINR
str.-line
Book dep.
12/00
_
LINB
str.-line
Group
8/00
_
_
LINR
str.-line
ACRS
. . . .
_
_
. . . .
. . . .
. . . .
8/00
. . . . . .
Class
Chart of
depreciation
Machines
USAGermany
1
Page 30

31. Controlling Organizational structure:
Operating
Concern
(AZOM)
Controlling
Area
(AZOM)
Company
Code
(AZOM)
Company
Code
(AZOM)
Page 31

32. Operating Concern
oOperating Concernrepresents an organizational unit in your company for which the
Sales and Market has a uniform structure. It is the valuation level for Profitability
Analysis (CO-PA).
oIt is an Organizational unit in the CO
oHaving the costing based and account based Profitability Analysis.
oIt collect the maximum data from SD, Market segment
oIt is required only for controlling profitability analysis
CO
PA
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33. Controlling Area
oAn organizational unit within a company, used to represent a closed system for cost
accounting purposes.
oA controlling area may include single or multiple company codes that may use
different currencies. These company codes must use the same operative chart of
accounts.
oAll internal allocations refer exclusively to objects in the same controlling area.
oControlling is a function which supports the business analysis and management
decision making process
oIt is controlling organizational unit
oRecord the OH related activities
oRecord the manufacturing related activities
oRecord the internal units.
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34. Company Code
At this level, recording and tracking the financial transactions, book keeping and
preparing or extracting the financial statements like P&L and Balance sheet.
The company code usage is the external purpose.
Page 34

35. Master Data in Cost Center Accounting
Activity
Type
Statistical
Key
Figure
Cost
Center
Cost
Element
Page 35
Profit Center
Internal Order

36. Cost Element Accounting
A component of Controlling (CO) that collects and summarizes
postings that arise within CO in a reconciliation ledger.
The Cost Element is divided in to Two types:
Primary Cost elements
Secondary Cost elements
COFI
G/L
Account
Primary
Cost
Element
Automatic
Interface
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37. Primary cost Element Category : These Primary cost elements are main
integration point between FI and CO. A cost element whose costs originate outside of
CO and accrual costs that are used only for controlling purposes
It represent a G/L Account in FI
01 is Primary Cost Element Category
11 is Revenue cost Element Category
12 is Sales Deduction cost Element Category
22 is External Settlement cost Element Category
Secondary cost Element Category : A cost element that is used to allocate
costs for internal activities.
Secondary cost elements do not correspond to any G/L account in Financial
Accounting. They are used only in Controlling and consequently cannot be defined in
FI as an account.
21 is Internal cost Element Category
31 is WIP cost Element Category
41 is IOH cost Element Category
42 Assessment cost Element Category
43 is DOH cost Element Category
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38. Cost Center Accounting
oWe use Cost Center Accounting for controlling purposes within your organization.
oThe costs incurred by your organization should be transparent.
oThis enables you to check the profitability of individual functional areas and provide
decision-making data for management.
oCost Center Hierarchy
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39. Cost Center Hierarchy
Cost Centers are Structured into Organizational and/or Functional Hierarchical Groups .This is
known as the Cost Center Hierarchy.
The Hierarchy created for Operational Management is called the Cost Center Standard Hierarchy
Multiple Alternate Hierarchies can be created for Functional Management. These are simply
called Cost Center Groups
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40. Page 40AZITO AZITO

41. Activity Type
oActivitytypesdefinefunctionsorservicesperformedbyacostcenter,andareused
toallocatethatcenter’scoststoothercostobjects.
oActivitytypesarefrequentlyusedintheallocationofoverheadtoproduction.
Cost Center Cost Object
Allocation
Activity Type
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42. Cost Center Planning
oInput Planning: we will do plan for CE Vs.
CC wise is nothing but expenditure
planning. The same we call as a CE
planning
oIt is divided in to Two types
o Activity Independent Planning
o Activity Dependent Planning
oOutput Planning: In output planning we
will do the planning with reference to
Cost Center Vs. Cost Element Vs. Activity
Type
o The prerequisite need to be maintain
output planning then only we can
maintain Activity Dependent Planning (CC
Vs. Activity type)
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43. Internal Order (IO)
Purpose:
oInternal ordersare 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, to the final settlement and archiving.
Use:
oYou can use master data to assign certain characteristics to your internal orders,
which enables you to control which business transactions can be used with the
internal order.
oInternal order planning enables you to roughly estimate the costs of a job before
the order starts and to make an exact calculation at a later date. You can choose
between various planning approaches to compare the effectiveness of different
methods. You can assign and manage budgets for internal orders.
oYou apply the actual costs incurred by a job to your internal orders using actual
postings. In Financial Accounting, you can assign primary cost postings directly
to internal orders.
oIn period-end closing you can use various different allocation methods (for
example, overhead costing) to allocate costs between different areas of Cost
Accounting.
oOrder settlement enables you to transfer the costs incurred by an order to the
appropriate receivers.
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44. Internal Order Types:
Two Types of Internal Order :
oStatistical Internal Order: It is only for reporting purpose , we
can'tuse for settlement.
oWhile posting any entry if we mention both Cost Center and Internal
Order system will check IO is real or statistical if IO is real system will
give priority to IO , If IO is statically Cost center is priority...
oReal Internal Order: If you want to settle any cost to different
object i.e. Cost Center, Internal Order, G/L, Asset etc... we use Real
order.
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45. Profit Center Accounting
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46. Purpose of Profit Center Accounting
Aprofit centeris 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”.
The main aim of Profit Center Accounting is to determine profit for internal areas of
responsibility. It lets you determine profits and losses using either period accounting
or the cost-of-sales approach.
Every profit center is assigned to the organizational unitControlling area. The profit
centers in a company code belong to a standard profit center hierarchy that is also
assigned to the controlling area.
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47. Thank You
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