SAP University Alliances

Version

2.2

Authors Simha Magal

Stefan Weidner
Tom Wilder

Phase I: Financial Accounting

Product
SAP ERP 6.0 EhP4
Global Bike Inc.

Level
Beginner

Focus
Configuration: Financial
Accounting

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Agenda

Enterprise Structure
Business rules and parameters
Master data
Process execution (testing)
Exercises

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Enterprise Structure

Enterprise structure elements

- Client
- Financial accounting
Company code
Business area

- Management accounting
Operating concern
Controlling area

- Fulfillment
Credit control area

Define / Maintain
- Including some parameters

Assign

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Enterprise Structure

Operating
Concern

CO-PA

CO-PCA, CO-OM,Controlling
CO-PC
Area
Company
FI
Code

S-Org POrg MM,

Plant,
SD,
etc.
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PP,

Controlling
Area

Company
Code

S-Org POrg Plant,

etc.
etc.
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Company Code

Used to represent a legal entity

Key organizational level for financial accounting
- Books are maintained at the company code level
- Financial statements are generated for company codes

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Company Code

One for each legal entity

One for each country

Buick

GBI USA

Cadillac

GBI Germany

Chevrolet

GBI Australia

GMC
Shanghai GM

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Business Area

Internal divisions of the enterprise

- Define areas of responsibility

Financial statements are generated for business areas

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Operating Concern & Controlling Area

Operating Concern:

GL00

Operating Concern

NA00

Controlling Area

US00

Company Code

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NA##
US##

- Relevant to profitability analysis

- Represents external market
segments
- Several controlling areas can be
assigned to operating concerns

Controlling Area
- Organizational level in controlling
- Costs are allocated within a
controlling area
- Several company codes can be
assigned to a controlling area

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Credit Control Area

Responsible for customer

credit
Centralized
- Once CCA for the
enterprise

Enterprise

GBI

Credit
Control Area
GL00

Company
Code
US00
DE00

GL##
US##

DE##

Decentralized
- Multiple CCA for the
enterprise
- Example: North
America, Europe, Asia

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Agenda

Enterprise Structure
Business rules and parameters
Master data
Process execution (testing)
Exercises

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Business Rules and Parameters

Global parameters (for CC)

Account groups
Field status variants
Posting periods
Number ranges
Tolerance groups

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Business Rules and Parameters

Global parameters (for CC)

- Chart of accounts
- Credit control area
- Fiscal year variant
Define accounting fiscal
year
Create normal posting
periods
Create special periods for
adjustments

Account Groups
- Groups accounts with similar
characteristics

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Define field status

Field status variants
- ZEXP: Expense accounts
- ZGBS: General Balance
Sheet Accounts
- ZMMA: Material Management
GR/IR Accounts
- ZRAA: Reconciliation
Accounts
- ZREV: Revenue Accounts

Demo
- Field status variants
- Note: FI global settings>Ledgers->Fields
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Business Rules and Parameters

Posting Periods
- Define periods
- Assign periods to CC
- Close past periods

Document number ranges

- For various documents

Tolerance groups for employees

- Posting limits

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Agenda

Enterprise Structure
Business rules and parameters
Master data
Process execution (testing)
Exercises

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Master Data

Chart of accounts
General ledger accounts
Subsidiary (sub)ledgers
Cost elements
Cost centers
Statistical key figures

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Chart of Accounts

An orderly definition of accounts in the general ledger

Three types of chart of accounts:
- Operative COA
- Country-specific COA
- Group COA

Multiple charts of accounts exist

- US (CAUS) , Germany (GKR), Canada (CANA)
Country specific to meet reporting requirements

- International Chart (INT)

IFRS

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Chart of Accounts

One COA can be used by

multiple company codes
- Different GM companies
(Buick, Cadillac, GMC) can
use the same (US) chart of
accounts
- Shanghai GM will use the
Chinese chart of accounts

A company must use at least

one chart of account
- Can use more than one
chart of account to create
alternate ledgers

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General Ledger Accounts

Used to record all accounting impact of business transactions

Groups
-

Retained earnings account

Balance sheet accounts
Income statement accounts
Reconciliation accounts

Data in the general ledger accounts are segmented by

organizational level
- Chart of account segment
- Company code segment
- General ledger = COA data + Company code data

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Master Data: General Ledger Accounts

Demo

Show available chart of accounts

Show examples of GL accounts
Show segments of data

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Master Data: Sub-ledger and Reconciliation Accounts

Subsidiary Ledgers

Reconciliation Accounts

Are not part of the general

ledger.

Are general ledger accounts

Used to separate accounting

for customers, vendors, and
assets
Sub ledger
account

Reconciliation
account

Customer

Accounts
Receivable

Vendor

Accounts Payable

Asset (specific)

Assets

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Cannot be posted to directly

Maintain the sum of the
postings in sub-ledgers
Are specified in the definition
of the sub-ledger
Demo

Show sub ledger accounts

Show connection between sub ledger
and GL (Customer <--> AR)
Show non-reconciliation AR and AP
accounts
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Master Data: Sub-ledger and Reconciliation Accounts

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Master Data: Cost Center

Location where costs are

incurred
- Department, individuals,
special projects
- Examples
Copy center
Security department
IT Help desk

Cost bucket used to

accumulate costs
- Typically Overhead costs
Payroll
Rent
utilities

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Responsible for cost

containment
Accumulated costs are then
charged to other cost
centers
Many processes have
orders
- Purchase orders, Production
orders, Sales orders
- Expenses can be charged to
these orders

Collectively objects that can

absorb costs are called
controlling objects
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Master Data: Cost Center Hierarchy

Demo

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Cost center
hierarchy

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Cost Elements

Primary Cost Element

Secondary Cost Element

Associated with expense

accounts in G/L

Secondary cost elements are

defined only within CO and
do not have a corresponding
G/L account

All postings in the G/L expense

account are also
(automatically) posted in the
corresponding cost element
Payroll, rent, utilities, etc
Typically uses the same
number as G/L account

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Used for internal cost

allocation among cost
centers
Example:
- Primary: Electricity, Gas,
Water
- Secondary: Utilities

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Posting in FI and CO

FI
Supplies Expense
Debit

500

Credit

CO
Bank Account
Debit

Credit

PCE

500

500
NAAD1000:
Administrative
Costs
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Master Data: Statistical Key Figures

An allocation base for cost allocation between cost centers

Measurable quantity
-

Number of employees
Square feet
Miles driven
Minutes of time (phone call)

Used in periodic allocations and distributions (CO processes)

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Agenda

Enterprise Structure
Business rules and parameters
Master data
Process execution (testing)
Exercises

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Process execution (Testing)

Recording of value flows ($$) as a result of other processes and

transactions
- General Ledger Accounting
G/L postings for rent, utilities, wages, etc.

- Accounts Payable Accounting

Part of the procurement process

- Accounts Receivable Accounting

Part of the fulfillment process

- Asset Accounting
Acquisition, depreciation, retirement

Processes are executed to test the configuration

- General Ledger Accounting in this Phase
- Other testing will occur in later phases

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Agenda

Enterprise Structure
Business rules and parameters
Master data
Process execution (testing)
Exercises

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Exercises

1.1 - Enterprise Structure

- Configure the enterprise structure

1.2 - Business Rules and Parameters

- Define Business Rules and Parameters

1.3 - Master Data

- Create needed master data (copy from 00 where possible)

1.4 Process Execution (Testing)

- Post several G/L transactions

Appendices
- Exercises provide detailed instructions for one or few objects (e.g.,
once cost center, once vendor, etc.)
- Appendices provide data from additional objects (cost centers, etc.)
- Dont forget them!!!!
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Exercises

Enterprise
Structure

Rules and
Parameters

Master Data

Process
Execution

I.1.1: Define Company Code3

I.1.2: Define Business Area5
I.1.3: Define Empty Chart of Accounts6
I.1.4: Maintain Controlling Area7
I.1.5: Define Credit Control Area8
I.1.6: Define Variants for Open Posting Period9
I.1.7: Define Field Status Variants10
I.1.8: Enter Global Parameters11
I.1.9: Assign Company Code to Controlling Area12
I.1.10: Assign Controlling Area to Operating Concern13
I.1.11: Define Standard Hierarchy14
I.1.12: Assign Permitted Credit Control Areas15
I.1.13: Maintain Company Code for Materials16

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Exercises
Configuration Step

Description: In this task, you define your own company code in the United States.
The company code is the organizational unit that allows you to structure your
enterprise from a financial accounting perspective. A company code possesses
information that is important for financial accounting purposes. For example,
each company code is assigned to exactly one country.

Explanation

Warning: See General Notes and Cautions about table locks.

Navigation

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Exercises

Enter value as
specified
(except for ##)
e.g.: US05, Dallas

Find and enter

appropriate
Code/Value
e.g.: US, USD, EN

Tasks and Data Entry

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Exercises

A note about ## vs. ###

-

User IDs have three digits at the end: GBI-###

Configuration can only have 99 users : 01, 02..99
Exercises reference ##.
Substitute the last two digits from their UserID
User GBI-034 will use 34

Examples
-

Controlling area (North America: NA## -> NA34)

Company code (US company: US## -> US34)
Business area (Bicycles: BI## -> BI34)
Credit control area (Global: GL## -> GL34)
Exception: Operating concern (GL00 for everyone)
Technical reason for not using GL##
Operating concern is a cross client change

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Exercises

Two versions
- Student version
- Instructor version

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Includes screenshots
Notes (need to add more; you can help!)
Cautions and warnings (need to add more; you can help!)
Dont give these to students

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Agenda

Enterprise Structure
Business rules and parameters
Master data
Process execution (testing)
Exercises

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