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1.1
COMPANY CODE
It is the smallest organizational unit for which a complete self-contained set of accounts can be
drawn up for purposes of external reporting. The process of external reporting involves recording all
relevant transactions and generating all items and supporting documents required for legal financial
statements (Balance Sheet and Profit and Loss statement).
Only a legally independent company is normally represented by a Company Code in the SAP
system. In financial accounting, business transactions are always entered on the Company Code level
and processed further. The costs are also managed at the Company Code level. By using internal
organizational structures, it is possible to divide this up even further in Controlling.
Tax and Legal requirements: ability to produce an auditable, fully balanced set of financial records.
In CMRI system, there will be one Company Codes where the Statutory Profit and Loss Statement as
well as Balance Sheet will be generated under Schedule VI to the Companies Act, 1956.
Company Code Description
CMRI
Company Code
1000
In the following documentation, we will refer all scenarios with reference to Company Code CMRI.
All scenarios will work identically for the other 2 company codes also. Wherever differences arise,
we will refer in explicit.
Posting Period
Variant
Name
Company
code
1000
1000
1100
Supreme Tradelinks
1100
2000
Quest Retail
2000
CHART OF ACCOUNTS
The Chart of Accounts is a classification scheme consisting of a group of general ledger (G/L)
accounts. It provides a framework for the recording of values, in order to ensure an orderly rendering
of accounting data. The G/L accounts it contains can be used by one or more Company Codes. Every
Company Code must be assigned a Chart of Accounts.
For each G/L account, the Chart of Accounts contains the account number, the account name and
other technical information. A Chart of Accounts must be assigned to each Company Code and will
be used in both financial accounting and cost accounting.
All 3 company codes will use a common chart of account to manage accounting in consistent
manner.
GL Account Creation Process
Step 1 Create GL account in Chart of Account (GL Code, Description, Balance Sheet account /
P&L account)
Step 2 Extend GL account to individual company codes
Chart
of
Accounts Chart of Accounts
Description
PR Chart of Accounts
1000
Following is the proposed Chart of Account structure for Planet Retail -
Natur
e
Account Group
Liabilit
ies
Shareholders Funds
SHAR
LNSE
LNUN
Current Liabilities
CULI
Provisions
PROV
Fixed Assets
FIXD
Investments
INVS
Inventories
INVE
Debtors
DEBT
ADVA
BANK
Group
Code
From To
1000 10999
00 9
1100 1199
00
99
1200 1299
00
99
1300 1399
00
99
1400 1499
00
99
Assets
2000
00
2100
00
2200
00
2300
00
2400
00
2500
2099
99
2199
99
2299
99
2399
99
2499
99
2599
Deferred Tax
Misc Expenditures not
Written Of
DTAX
Revenue
REVE
Other Income
OTIN
COGS
Employees Cost
Gen & Administrative
Expenses
Selling & Distribution
Expenses
EMPL
FINA
Depreciation
DEPR
PTAX
MENW
00
2600
00
2700
00
99
2699
99
2799
99
3000
00
3100
00
3099
99
3199
99
4000
00
4100
00
4200
00
4300
00
4400
00
4500
00
4600
00
4099
99
4199
99
4299
99
4399
99
4499
99
4599
99
4699
99
Incom
e
Expen
ses
ADMN
SELL
CONTROLLING AREA
Controlling area is an Organizational Unit within a company, which is used to represent a system for
management accounting purposes. A controlling area may include single or multiple Company
Codes. These Company Codes must use the same operative Chart of Accounts & the same Fiscal
Year.
All internal allocations refer exclusively to objects in the same Controlling Area. Internal business
transactions are portrayed in the Controlling Area. Primary costs are transferred from external
accounting and classified according to managerial accounting perspectives. All these will help the
company track specific information for cost monitoring, business decisions and sales control.
One controlling area 1000 is recommended for Retail operations to facilitate internal reporting
requirements.
Controlling
Description
PR Controlling Area
Plane
t
Retail
PRH
PL
PRHPL Commo
n
Debenha
ms
Debenha
ms Common
Store 1
Store 1
Fashion
Store 1
Health
Store 1
- Home
Store 2
Store 2
Fashion
Store 2
Health
Store 2
- Home
DCDebenhams
Next
Next Common
Store 3
Store 4
DC - Next
STPL
STPL Commo
n
M&S
M&S Common
Store 5
Store 5
Fashion
Store 5
- F&B
Store 6
Store 6
Fashion
Store 6
- F&B
DC-M&S
QRP
L
QRPL Commo
n
TBS
TBS Common
Store 7
Store 8
DC-TBS
Code Structure:Profit Centers would thus be SITES (which will be Stores / DC) + Major Merchandise Category
(segments). SAP provides a 10 digit Profit Center Code to be defined:
XX
XX
______
XXXX
XX
___
COMPANY CODE
CONCEPT
SITE CODE
SEGMENT CODE
Concept codes, Site Codes and Segment Codes are being discussed and once finalized, Profit Center
Codes will be drawn-up. However, the structure will be as explained above.
Plan
et
Retai
l
PRH
PL
PRHPL
Comm
on
Debenha
ms
Debenha
ms Common
Store 1
Store 1 Fashion
Store 1 Health
Store 1 Home
Store 1 Common
Store 2
Store 2 Fashion
Store 2 Health
Store 2 Home
Store 2 Common
DCDebenhams
Next
Next Common
Store 3
Store 4
DC - Next
STPL
STPL Comm
on
M&S
M&S Common
Store 5
Store 5 Fashion
Store 5 F&B
Store 5 Common
Store 6
Store 6 Fashion
Store 6 F&B
Store 6 Common
DC-M&S
QRP
L
QRPL Comm
on
TBS
TBS Common
Store 7
Store 8
DC-TBS
Code Structure: Cost Centers would thus be sites (which will be Stores / DC) within which Departments / Offices are
defined. SAP provides a 10 digit Cost Center Code to be defined. Since our definition of Cost Center
is Site and within this a Department, we could restrict the Cost Center Code to a 9 digit code as
defined below:
XX
XX
______
XXXX
XX
___
COMPANY CODE
CONCEPT
SITE CODE
SEGMENT/FUNCTION
CODE
Site Codes are being discussed and once finalized, Cost Center Codes will be drawn-up. However,
the structure will be as explained above.