accounting in SAP.ppt

7/28/2019 accounting in SAP.ppt

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© 2008 by SAP AG. All rights reserved. 1

Accounting




G/L Accounts

In the SAP R/3 system, each transaction that has afinancial impact is recorded in a general ledger (G/L)

account or sub-ledger accounts that are posted to theG/L via reconciliation accounts.

The central task of G/L accounting is to provide acomprehensive picture for external accounting andaccounts. Recording all business transactions (primary

postings as well as settlements from internalaccounting) in a software system that is fully integratedwith all the other operational areas of a companyensures that the accounting data is always completeand accurate.




G/L Accounts

The SAP FI General Ledger has the following features:

Automatic and simultaneous posting of all sub-

ledger items in the appropriate general ledger accounts (reconciliation accounts)

Simultaneous updating of general ledger and costaccounting areas

Real-time evaluation of and reporting on currentaccounting data, in the form of account displays,financial statements with different financialstatement versions and additional analyses.

Can take some getting used to as reports can change

continuously




G/L Account

Essentially, the general ledger serves as a completerecord of all business transactions. It is the centralized,

up-to-date reference for the rendering of accounts. Actual individual transactions can be checked at anytime, in real-time, by displaying the original documents,line items, and transaction figures at various levelssuch as:

Account information Journals

Totals/transaction figures

Balance sheet/profit and loss evaluations




Master Data

• Describes items or objects used in a business such asaccounts, materials, vendors, customers that remains

unchanged over an extended period of time• Transaction data is data that is used for relatively short

periods of time, usually to record business transactions(sales orders, purchase orders, production orders,payroll amounts)

• Transaction data is regularly removed from the systemin a process known as archiving. For auditingpurposes, it cannot simply be deleted.

• A master record must be created for every G/Laccount




Balance Sheet Accounts

Assets

What the firm owns, in variouslevels of liquidity:CashReceivablesInventoryPlant & EquipmentReal Estate


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Liabilities

What the firm owesPayables—payment for

materials/services received on credit

Bank loans




Equity

The difference between totalassets and total liabilities

Includes

Retained earningsNet income on past periods

Assets = Liabilities + Equity



Profit and Loss (P&L)

Accounts Revenues

Money obtained by the sale of goods and services

to customers Expenses

Money spent to produce the revenue:

Materials

Utilities

Salaries

Selling expenses

Administrative expenses



• Contain an identifier for the Retained

Earnings account

• At fiscal year end, the P & L accounts

are ‗closed‘ to the Retained Earnings

account

Profit and Loss (P&L)

Accounts



Reconciliation Accounts

Reconciliation account

Accounts receivable, Accountspayable, Assets

When you post to an account in the sub-ledger, the system automatically posts to

the corresponding reconciliation accountThe general ledger is automatically

updated



G/L Master Records

Contain: Chart of Accounts

Company Code

G/L account number

G/L account name

Account type: Balance sheet or IncomeStatement

Account group



Account Groups

Identifier that controls which fields must be enteredwhen the account is created

Can determine a valid number interval for the G/L

account Must be created before creating G/L master records—

configuration data

Three Account Groups created for Fitter Snacker

Balance Sheet Accounts Profit and Loss Accounts

Reconciliation Accounts



Account Groups

Financial accounting General ledger accounting

G/L accountsMaster Records Preparations

Define Account Groups



Account Determination

When you enter a goods movement

(inventory receipt, inventory withdrawal,

variances, etc.), you do not have to enter

G/L accounts since R/3 automatically

determines the correct accounts.

Automatic Account Determination is set

in Customizing (IMG)



Valuation Grouping Code

Allows the same account determination rules

to be used in multiple plants

Assign a valuation grouping code to thevaluation area, then use the valuation grouping

code in automatic account assignment



Automatic Account

Determination Hierarchical Process (classification)

Chart of Accounts/Company Code Valuation area/grouping code

Transaction/Event Key (from transaction

being executed)

Goods Receipt Modifier (if applicable) Valuation Class (from material master)

All specified at time of transaction



Automatic Account

Determination Transaction Keys:

BSX: Inventory Postings

GBB: Offsetting Entry for Inventory Postings

DIF: Materials Management SmallDifferences

PRD: Cost (price) differences WRX: Goods receipt / inv. receipt clearing

acct




Automatic Account

Determination Valuation Class

3000: Raw Materials

7900: Semi-finished

7920: Finished




Automatic Account

DeterminationGeneral

Account

Modifier Usage

AUF Goods Receipt From Production Order – post to production settlement

BSA Goods Receipt Into Initial Stock – only

used once for posting inventory off-

set for initial stock data load

VAX Goods Issue To Sales - post to Costof Goods Sold (COGS)

VBR Goods Issue to Consumption - post

to material consumption (e.g., goods

issue to job or production order)




Automatic Account

Determination From Transaction:

Company Code Chart of Accounts

Transaction Key (not same as transaction code) General Account Modifier (if applicable)

From Material Valuation Class

Determines: G/L Account for Posting




Transaction Keys




Automatic Account

Determination CHFS BSX 00AP 3000 Account 200000




Controlling (CO)

CO

FI

Controlling

Internal Accounting

Cost Accounting

Managerial AccountingManagement Accounting

Flexible – Non-standard

Financial AccountingExternal Accounting

Financial Statements

Legal Requirements

Standard




While there are different requirements for internal and

external users of accounting data, the underlying data

is usually the same for both purposes and can be

―captured‖ while recording business transactions—

purchase orders, goods receipts, material withdrawals,

etc. The data can then be presented in different ways

for different users.

Info system reports in FI are standard

G/L Account Listing

Info system reports in CO are flexible

Controlling (CO)




Cost Elements

Primary Cost Elements Expenses in FI that are relevant to cost accounting

are recorded in CO using primary cost element. Primary cost elements can only be created when a

G/L expense account exists. Thus, there is a one-to-one relationship between primary cost elementsand G/L expense accounts.

When an FI posting occurs in a G/L account for which a primary cost element has been defined, avalid controlling object (cost center, order, etc.) isrequired before posting.




Cost Elements

Secondary Cost Elements Secondary Cost Elements are used exclusively for

certain types of CO transactions. Secondary cost elements have no corresponding

G/L account.

Secondary cost elements can be used intransferring costs from one cost center to other costcenters. Primary costs are grouped together andtransferred to receiver cost centers using asecondary cost element.




Cost Centers

Cost centers are used to track WHERE costsoccur in the organization. As costs are

incurred, they are assigned or posted to theappropriate cost center.

The posting and assignment of costs to costcenters is a critical step in using the CO

module. Cost centers are organized in a Standard

Hierarchy .




Cost Center StandardHierarchy

The cost center standard hierarchy organizes cost

centers and provides the ability to organize reports at

different levels in the organization:

FS-CC-## (Standard Hierarchy)

##HQ (Cost Center Group / Hierarchy Area)

HQ Cost Centers

A010 – Finance

A020 – H/R

A030 – Sales

A040 –

Marketing A050 – Purchasing

A060 - Administration

##MFG (Cost Center Group / Hierarchy Area)

MFG Cost Centers

P010 – Production

P020 – Warehouse

P030 –

Receiving

FS-CC-## (Standard Hierarchy)


HQ Cost Centers

A010 – Finance

A020 – H/R

A030 – Sales

A040 –



HQ Cost Centers

A010 – Finance

A020 – H/R

A030 – Sales

A040 –



##MFG (Cost Center Group / Hierarchy Area)

MFG Cost Centers

P010 – Production

P020 – Warehouse

P030 –

Receiving




Cost Center Groups

Cost Center Groups can also be defined

to support additional reporting

capabilities:


HQ Cost Centers

A010 –

Finance A020 – H/R

A030 – Sales

A040 – Marketing

A050 – Purchasing

A060 - Administration## Sales group


HQ Cost Centers

A010 –


A030 – Sales

A040 – Marketing

A050 – Purchasing


HQ Cost Centers

A010 –


A030 – Sales

A040 – Marketing

A050 – Purchasing

A060 - Administration## Sales group



Cost Allocation

Frequently, costs like rent, computer expense,utilities, etc. have to be allocated to cost

centers to provide accurate cost reporting. Costs can be allocated using a statistical key

figure, which defines some measurable valuerelated to the cost center, like square footage,

head count, CPU hours, etc. Costs can also be distributed using fixed

percentages.

accounting in SAP.ppt

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