Transcript Enterprise Engineering with R/3

Enterprise Wide Information Systems
Financial Modules
Instructor: Richard W. Vawter
University of
Southern California
Objectives
 After this week, you should be able to:

Define the SAP R/3 organizational elements for Financials.

Discuss the financial and management reporting capabilities in
the system.

Identify financial integration points with the logistics chain.

Execute financial and management reports in the SAP R/3
System.
University of
Southern California
Topics
 Organizational Elements
 Reporting and Analysis
University of
Southern California
Financial Modules
The primary SAP R/3
application modules that
support Accounting are:

Financial Accounting



Core financial
accounting
General Ledger as well
as subledger
information
Sales &
Distribution
Financial
Accounting
Materials
Mgmt.
Controlling
Production
Planning
Fixed Assets
Mgmt.
R/3
Client / Server
ABAP/4
Quality
Mgmt.
Plant
Maintenance
Human
Resources
Project
System
Workflow
Industry
Solutions
Controlling

Management accounting
for tracking overhead
and production costs
University of
Southern California
The Financial Applications
EC
Enterprise Controlling
TR
FI
Cash Mgmt
General Ledger
Treasury Mgmt
CO
Overhead
Production
Subledgers
Funds Mgmt
IM
Profitability
Capital Investment and Financing
University of
Southern California
Accounting Organizational Units
FI
Financial Accounting
Chart of
accounts
Group
company
Company
code
Contains all
account
numbers
Consolidation
of company
codes
Independent
balancing
unit used for
legal reports
Used enterprise
wide
CO
Controlling
Business
area
Used to create
internal
balance sheets
Controlling
area
Cost
center
Profit
Center
Organizational Organizational Organizational
unit for cost
unit for cost
unit for
accounting
control
internal profit
analysis
Cost
accumulator
Cost and
revenue
centers
University of
Southern California
Organizational Elements in FI
The SAP R/3 Financial Accounting and Reporting
business processes use the following R/3 organizational
elements:
Company acme xyz

34500
34800
35100
35400
Charts of Accounts
34600
34900
35200
35500
34700
35000
35300
35600
Company Codes
ACME US, ACME GERMANY,
ACME PERU, ACME JAPAN

Group Company
ACME AMERICAS
ACME EUROPE
ACME ASIA

Business Areas

West
East
University of
Southern California
Organizational Units in Controlling (CO)
FI
Chart of Accounts
Controlling
Area
Operating
Concern
Profit
Centers
Cost
Accumulation
Cost Center
Categories
Cost element
Order
Activity type
Project
Statistical key Figures
University of
Southern California
Summary of Accounting Organizational Elements
OPERATING
CONCERN
Profit or
cost centers
Business area
Company
Code
Controlling
area 1
Company
Code
Company
Code
Company
Code
Controlling
area 2
Profit
Centers
Business area
Cost centers
Business area
Business areas across
company codes
Co’s in area1 must be
on same fiscal year
Fiscal year of area 2 may
be different than area 1
University of
Southern California
Topics
 Organizational Elements
 Reporting and Analysis
University of
Southern California
Internal and External Accounting
Executive Officers
Internal
Administrative
Staff
Senior
Management
Controllers
Operations Staff
External
Auditors
CO
FI
Insurers
Tax Authorities
Shareholders
Journalists
Bankers
Legal Authorities
Financial Analysts
University of
Southern California
Reporting: Standards vs. Flexibility
University of
Southern California
Reporting: Views of the Enterprise
FI
CO
TR
CO
University of
Southern California
Reporting: The Audit Trail
Reports
Balances
Line Items
Document
Transactions
Original
Document
University of
Southern California
General Ledger and its Subledgers
University of
Southern California
Financial Integration in Logistics
Some of the relevant financial activities resulting from
business events at the different stages in the supply chain
include:
Procurement
Inventory
• Commitment
• Inventory
bookkeeping
• Valuation
• Liquidity
strategies
• Exchange rate
hedging
• Invoice verification
• Cost management
• Payments
Production
• Product costing
• Material usage
• Work-inprogress
Sales
• Credit checking
• Discounting
• Billing
• Payment clearing
• Dunning analysis
• Profitability analysis
• Marketing budget
University of
Southern California
Controlling Features
FI
Revenue Ledger
Balance
Sheet
A
L
P&L
Expense Ledger
Revenue
Expen.
Special Ledgers
Monitoring of postings to
dimensions / data combinations
Monitoring plus control
through modern profit /
cost controlling methods
•
•
•
•
•
Region
Customer Group
Product
Process
Activity Based Costing
University of
Southern California
General Controlling Goals
 Support of strategic and tactical management
leadership
 Optimizing the individual organizational areas

Directing towards the goals

Profit orientation

Market and customer orientation
 Orientation to the target group

Current / summarized data

Decision-relevant data

Meaningful, easily understandable display
 Rounded Controlling model

How the system rounds numbers

The limits for rounding errors
University of
Southern California
Overview: Transaction-Based Postings
Human
Asset
Resources Mgmt.
• Invoices
Financial
Materials
Accounting Mgmt.
• Material
withdrawals
• Orders
• Purchase
requisitions
Controlling
• Repostings
• Activity
allocation
• Statistical
key figures
• Funds
reservation
University of
Southern California
In Summary:
 Organizational elements are definable structures that
represent the legal and /or organizational views of your
enterprise.
 The SAP R/3 System offers standard and flexible
financial and management reporting capabilities to
satisfy external and internal accounting requirements.
 FI/CO integration with the Logistics modules occurs
throughout the value chain with the posting of
transactions in the system.
University of
Southern California