India SAP CoE, Slide 1
CO0004: CO Integration with FI CO0004: CO Integration with FI Version 1.0Version 1.0
India SAP CoE, Slide 2
CO Integration with FI CO Integration with FI
1 PrepareMe
2 TellMe
3 ShowMe
3
5
Let Me
Help Me
India SAP CoE, Slide 3
CO Integration with FICO Integration with FI
1 PrepareMe
2 TellMe
3 ShowMe
3
5
Let Me
Help Me
India SAP CoE, Slide 4
Prepare Me
Purpose
Use
Challenge
Agenda
India SAP CoE, Slide 5
PurposePurposeAll functional processes finally end in accounting entries with various cost All functional processes finally end in accounting entries with various cost objects assignments in FI/CO. Being a CO consultant, it is expected to know objects assignments in FI/CO. Being a CO consultant, it is expected to know the FI-CO Integration points. This courseware will contain integration the FI-CO Integration points. This courseware will contain integration overview between FI-CO Componentsoverview between FI-CO Components
UseUseOn successful completion of this training, Associate will have fair idea on…..On successful completion of this training, Associate will have fair idea on…..
- The Integration points between FI & CO.- The Integration points between FI & CO.
Purpose and UsePurpose and Use
India SAP CoE, Slide 6
Internal Vs. external reporting: Internal Vs. external reporting:
Challenge to use different sub-modules in either finance or Challenge to use different sub-modules in either finance or controlling according to the reporting requirements (whether controlling according to the reporting requirements (whether external or internal)external or internal)
To align the organization structures in Finance and ControllingTo align the organization structures in Finance and Controlling
Few examples:Few examples:
•Whether all company codes should be tagged to one controlling Whether all company codes should be tagged to one controlling area or individual 1 company code :1 controlling areaarea or individual 1 company code :1 controlling area
•Whether profit center accounting in controlling should be chosen Whether profit center accounting in controlling should be chosen instead of business area in financial accounting.instead of business area in financial accounting.
•Determining functional area from either in cost center or GL Determining functional area from either in cost center or GL accounts posses an integration challengeaccounts posses an integration challenge
•To make sure that only relevant general ledger accounts are To make sure that only relevant general ledger accounts are created as cost elements to align finance and controlling reporting.created as cost elements to align finance and controlling reporting.
ChallengesChallenges
India SAP CoE, Slide 7
CO Integration with FICO Integration with FI
1 PrepareMe
2 TellMe
3 ShowMe
3
5
Let Me
Help Me
India SAP CoE, Slide 8
COA
Co.Code
GL Accounts
Primary Cost.Elmnt
Thru Sec. Cost.Elemnt
CO Objects
CO Objects
Controlling
Co.Area
Co.Code Co.Code
FI-CO Flow Org. ElementsFI-CO Flow Org. Elements
Integration Point
India SAP CoE, Slide 9
Sales & Distribution:
Sales Order- Delivery
- Billing
Accounting Entry for goods movement
-Accounting Entry for Revenue & Accounts
Receivable
Accounting entries getting registered in -PCA-COPA getting updated for Revenues and COGS and PCA ->getting updated for revenues
Basic Flow And Integration Basic Flow And Integration Source Model (1/2)Source Model (1/2)
Finance:- AP / AR /GL
- Asset Accounting
Funds Management
Respective FI Entries
- Revenue & Cost posting in Cost center, Profit Center and CO-PA.
-Asset Creation internally is via Internals Order or Project systems which are Controlling entities
- Cost center and Profit center as organization entities linked to Fund Center
Basic Modules Links to Controlling Accounting in FI
India SAP CoE, Slide 10
Production Planning:- Production Order- Goods Issue and receipts
- Activity Confirmation
-Accounts for stocks, consumption and cost of goods manufactured
-Activity Confirmation is not considered as it happens only in CO Module
Production order is a Cost Object in controlling module
-PCA updated with consumption and stock entries and WIP during period end processing
-COPA / any other cost object is updated with variance on period end processing
-Activity confirmation transfers the cost from cost center to production order. This entries are recognized in profit center accounting
Materials Management:
Other Goods Issue like issues to cost center or scrapping
Normal consumption entries posted with the probability the GL accounts for accounting could be different
-Receiver objects are normally cost center or internal order & these entries are recognized in Profit center accounting.
Basic Flow And Integration Basic Flow And Integration Source Model (2/2)Source Model (2/2)
Basic Modules Links to Controlling Accounting in FI
India SAP CoE, Slide 11
CO Integration With FICO Integration With FIIn respect of General Ledger Accounts in Finance which are P &
L in Nature, a Cost Element is created in Controlling.
At the time of Document Entry in Finance, along with the General Ledger Account, a Controlling Object like Cost Centre / Internal Order..etc is being entered.
Thereby, data flows from Finance to Controlling Module.
Following slides shows the five basic integration points between Finance - Controlling…
They are….. - Default Account Assignments
- Additional Balance Sheet / P&L Accounts
- Open / Close Posting Periods
- Maintain Exchange Rates
- Maintain Field Status
- Fund Center Accounting
India SAP CoE, Slide 12
Automatic assignment occurs during postings in external accounting (within the FI, MM, or SD components) if we do not enter a CO account assignment objects like “cost center” “order” or “project” for a cost accounting relevant posting.
Below are the few examples where automatic postings are defined and used…..
- Discounts, exchange rate differences, and banking fees in FI
- Price differences and minor differences in MM
Following are the CO Assignments which are assigned to Primary cost elements….
- Cost Center
- Order
- Profit Center
Default Account AssignmentsDefault Account Assignments(OKB9)(OKB9)
India SAP CoE, Slide 13
Dummy Profit Center
If No profit center is specified in posting, then Dummy Profit center is used.
Profit Center Determination
In this section, Accounts or Range of accounts are assigned to a profit center for the flow of values.
Balance Sheet / P&L AccountsBalance Sheet / P&L Accounts
Profit Center Derivation
This is in addition to the above, we can derive profit center based on Co.Code, Account No, Business Area…etc.,
India SAP CoE, Slide 14
Open/Close Posting PeriodsOpen/Close Posting Periods
Assets (A)
Vendors (K)
Materials (M)
GL Accounts (S) Contracts (C)
Customers (D)
- Consultant can specify which periods to be open / close for posting of documents in Finance (Internally Controls' the Controlling postings as well)
- It is mandatory to maintain header entry (+) as a basic to make any postings.
- However standard SAP System provides 6 types of accounts if consultant wants to maintain them individually
- Consultant can specify “Period Lower Limit”, “Upper Limit” & “Fiscal Year” for the period in question…. Following are the type of accounts….
India SAP CoE, Slide 15
Basically, maintaining exchange rates are mandatory for plan and actual postings: Besides this, following are the few more situations…
Finance
o Translate foreign currency amounts on posting or clearing
o Determine the profit/loss on exchange rate differences
o Value open items in foreign currency
o Value foreign currency account balances
Controlling
o Determine the controlling area currency equivalents of amounts
posted in different company code currencies
o Allow project settlement to take account of different controlling
area, sender and receiver currencies.
Maintain Exchange RatesMaintain Exchange Rates
The currency translation rates are time-dependent and can be maintained either manually or through program
India SAP CoE, Slide 16
Maintain Field Status Maintain Field Status (Field Status Group)(Field Status Group)
FSV
Co.Code
Field Status
TransactionalFSG @ MD A/c Group
Field Status Group is the one which controls the document entry fields, whether they are allowed for entry or not.
If FSG is not maintained properly in customizing, some important CO Objects may be missed from being posted…which might cause serious accounting imbalances (SDRO)
S-Suppress D-Display R-Required O-Optional
Field Status Variant
India SAP CoE, Slide 17
Account AssignmentsAccount Assignments (Asset Accounting-(Asset Accounting-ACSETACSET))
Cost center specified for APC Values &
Depreciation Run
India SAP CoE, Slide 18
CO Integration with FICO Integration with FI
1 PrepareMe
2 TellMe
3 ShowMe
3
5
Let Me
Help Me
India SAP CoE, Slide 19
Default Account AssignmentsDefault Account AssignmentsOKB9OKB9
IMG Path: Controlling – Cost Center Accounting-Actual Posting-Manual Actual Postings-Edit Automatic Account Assignment
India SAP CoE, Slide 20
Balance Sheet / P&L AccountsBalance Sheet / P&L Accounts(1/3)(1/3)
IMG Path: Controlling-Profit Center Accounting-Actual Posting-Choose Additional BS & P&L Accounts-Choose Accounts
If default Profit Center not specified, Dummy
PC is considered
India SAP CoE, Slide 21
Balance Sheet / P&L AccountsBalance Sheet / P&L Accounts…Contd(2/3)…Contd(2/3)
VAT Derivation BS Derivation
India SAP CoE, Slide 22
Balance Sheet / P&L AccountsBalance Sheet / P&L Accounts…Contd(3/3)…Contd(3/3)
Derivation for VAT accounts thru Plant
Derivation for BS accounts thru
Co.Code
India SAP CoE, Slide 23
Open/Close Posting PeriodsOpen/Close Posting PeriodsIMG Path: Financial Accounting Global Setting-Document-Posting Periods- Open/Close Posting Periods
Minimal Requirement for posting -“+ Header”
India SAP CoE, Slide 24
Maintain Exchange RatesMaintain Exchange RatesIMG Path: Enterprise Controlling-Consolidation-Data-Automatic Posting-Currency Translation-Exchange Rates-Maintain Exchange Rates
User can maintain both Direct –Indirect
Quotation
India SAP CoE, Slide 25
Maintain Field Status Maintain Field Status (Field Status Group)(Field Status Group)
IMG Path: Financial Accounting Global Settings–Document–Line Item–Controls– Define FSVariant
India SAP CoE, Slide 26
1 PrepareMe
2 TellMe
3 ShowMe
3
5
Let Me
Help Me
CO integration with FICO integration with FI
India SAP CoE, Slide 27
Document Entry in FinanceDocument Entry in Finance……Doc. EntryDoc. Entry
Enter Order / Cost centre or any specified CO Assignment Object & POST.
India SAP CoE, Slide 28
Document Entry in FinanceDocument Entry in Finance.. .. Doc. NoDoc. No..
Posted document number is displayed
India SAP CoE, Slide 29
Document Entry in FinanceDocument Entry in Finance……DisplayDisplay
Enter the Document number, Company Code, Fiscal Year in T-Code FB03 & Press ENTER.
Once we display the document, Click on Accounting Doc. to
view the related Controlling Data
India SAP CoE, Slide 30
Document Entry in ControllingDocument Entry in Controlling…..…..
Order Number to which the Cost is booked is displayed
For every Finance Document posted, a corresponding For every Finance Document posted, a corresponding Controlling Document is generated, as displayed above.Controlling Document is generated, as displayed above.
India SAP CoE, Slide 31
CO Integration with FICO Integration with FI
1 PrepareMe
2 TellMe
3 ShowMe
3
5
Let Me
Help Me
India SAP CoE, Slide 32
Points To RememberPoints To Remember
- Only General Ledger Accounts of Profit/Loss in nature are - Only General Ledger Accounts of Profit/Loss in nature are created as a Cost Element. (Exception to this rule is Balance created as a Cost Element. (Exception to this rule is Balance sheet Assets GL accounts can be created as statistical Cost sheet Assets GL accounts can be created as statistical Cost elements for budgetary control purposes)elements for budgetary control purposes)
- Validation & Substitution features used in finance will have - Validation & Substitution features used in finance will have effect in CO Objects derivation & Postings….effect in CO Objects derivation & Postings….
- It is important to know the objective behind reporting either in - It is important to know the objective behind reporting either in finance or controlling – In two comparative reports, all figures finance or controlling – In two comparative reports, all figures from finance may not tally with controlling. If this is by design from finance may not tally with controlling. If this is by design then we have an answer and if not then this should have been then we have an answer and if not then this should have been highlighted in the integration testing between these two highlighted in the integration testing between these two modulesmodules
India SAP CoE, Slide 33
Points To RememberPoints To Remember…..Contd…..Contd
- In New GL Accounting (Flexi Ledger), Profit center accounting - In New GL Accounting (Flexi Ledger), Profit center accounting is part of Finance rather Internal Accounting (Controlling)is part of Finance rather Internal Accounting (Controlling)
- Funds Management / Functional Areas- Funds Management / Functional Areas
- “Field Status Group” is another check point for any missing - “Field Status Group” is another check point for any missing Postings to CO Objects.Postings to CO Objects.
- OB52 – Open / Close posting periods.- OB52 – Open / Close posting periods.
- OB08 – Maintain Exchange Rates for foreign Currency - OB08 – Maintain Exchange Rates for foreign Currency Postings…Postings…