Finance Process Overview

Introductions

Course Structure / Rules

Silence Beepers and Mobile Phones Refrain from Side Discussions (We all want to hear
what you have to say)

Feel free to ask questions

If your question is off topic or will be discussed later in the training course, we will write it down to be sure we cover it

Clean-up behind yourself

Keep the training room free of clutter, empty water bottles, food etc.
3

What is SAP?

SAP is the largest enterprise software provider in the world. It is

a key tool in developing and implementing standardized best practice procedures, based on a consistent technology and platform that drives efficiencies and lowers maintenance costs.

SAP provides an integrated system that contains components to

support business processes of nearly every function within an organization. SAP is used by more than 40,000 companies globally.

Why SAP?

Best practice business processes World class technology Integrated system linking all processes Real-time data for real-time decisions Controls for Sarbanes-Oxley compliance Validation for Good Manufacturing Practices Self-sufficiency Solid platform for future growth One-company culture
5

Agenda

Course Objectives FICO Applications and Integration FICO Organization Structure & Master Data FICO Terms & Concepts

Objectives
Upon completion of this course, you will be able to:

Grasp FICO integration within the context of SAP

applications

Comprehend the Purpose and Functionality of FI, CO

and Related Applications

Understand overall SAP organizational hierarchy, FICO

organizational hierarchy, FICO Master Data and their evolution from the legacy CA Masterpiece Chart of Accounts

Attain a working knowledge of new SAP Financial

terms and concepts

Agenda
Course Objectives FICO Applications and Integration FICO Organization Structure & Master Data FICO Terms & Concepts

SAP Applications

FI Finance (GL, AP, AR)

SD MM PP

FI CO AM

CO Controlling (Cost Center Accounting, Profit Center Accounting, Product Cost AM Asset Management PS - Project Systems SD Sales Distribution MM Materials Management PP Production Planning

QM PM HR

SAP ECC

PS WF IS

Business Process Overview

SD SD

FI FI

Order to Cash
Sales Order Sales Order Processing Processing Customer Customer Payment Payment

Delivery Delivery

Billing Billing

Financial Integration Financial Integration

A/R

Sales

Cash

A/R

10

Business Process Overview

MM MM

FI FI

CO CO

Procure to Pay
Purchase Purchase Order Order Goods Goods Receipt Receipt Invoice Invoice Verification Verification Vendor Vendor Payment Payment

Requirement Requirement for Goods // for Goods Services Services

Financial Integration Financial Integration

Inventory

Receipt Clearing Account

Receipt Clearing Account

A/P

A/P

Cash

11

Relative Roles of FI and CO

FI
Financial Accounting, External Reporting

CO
Controlling, Internal Mgmt Reporting

General Ledger Accounts Payable Accounts Receivable Asset Management Financial Statements Budgeting & Planning

Cost Centers Profit Centers Projects (Work Breakdown Structures) Product Cost Accounting Profitability Analysis

This combination is the SAP Finance backbone.

12

Integration of SAP FI and CO

The link between the Finance and Controlling applications is

contained within the definition of the Chart of Accounts (CoA).
Finance Controlling

Profit & Profit & Loss Loss Statement Statement Chart of Accounts (General Ledger Accounts) Balance Balance Sheet Sheet

Primary Cost Elements

13

Basic Inter-Module Integration Examples

Controlling (CO) Asset Accounting
Asset Master Account Assignments. Asset Master Account Assignments. Depreciation Account Determination. Depreciation Primary Cost Elements serve as Primary Cost Elements serve as

Sales & Distribution (S&D)

Extensions of P&L Accounts. Extensions of P&L Accounts. Cost Centers and assigned to Cost Centers and assigned to Profit Centers. Profit Centers. Profit Centers: use GL accounts for Profit Centers: use GL accounts for Reporting. Reporting.

Invoicing and Sales Return Processing Invoicing and Sales Return Processing

Post Automatically to FI and CO. Post Automatically to FI and CO. Customer Master has a credit view Customer Master has a credit view which Resides in FI. which Resides in FI.

Project Systems

WBS Elements serve as Cost WBS Elements serve as Cost

Objects with Primary Cost Elements Objects with Primary Cost Elements serving as reporting rows and are serving as reporting rows and are assigned to Profit Centers. assigned to Profit Centers.

Finance (FI)

Material Management (MM)

profit center. profit center.

Chart of Accounts (COA) Chart of Accounts (COA) Functional Areas Functional Areas

Material Masters are assigned to a Material Masters are assigned to a

Production Planning (PP)

Production Orders are Production Orders are

Accounts Receivable

Accounts Payable
Vendor Masters are assigned to an Vendor Masters are assigned to an

Considered a Cost Object. Considered Cost Object. Master Data: Work Center are Master Data: Work Center are Assigned to Cost Centers. Assigned to Cost Centers.

Customer Masters are assigned to Customer Masters are assigned to

An AR account in the G/L COA on a An AR account in the G/L COA on a company code-specific level. company code-specific level.

AP account in the G/L COA on a AP account in the G/L COA on a company code-specific level. company code-specific level.

14

SAP Translates a Functional View to a Process View

Functional Orientation
Legacy System

Process Orientation
SAP

Manufacturing Manufacturing

Order to Cash

Purchasing Purchasing

Purchasing Purchasing

Finance Finance

Finance Finance

R&D R&D

Sales Sales

R&D R&D

Sales Sales
15

Procure to Pay

Accounting to Reporting Make to Order

Agenda

Course Objectives FICO Applications and Integration FICO Organization Structure & Master Data FICO Terms & Concepts

16

Organization Structure & Master Data Objectives

Upon completion of this topic, you will be able to:

Understand the SAP Organization Structure Define the Elements of FICO Understand the SAP FICO Hierarchy Describe the integration of FICO with other SAP modules Understand Master Data

17

What is SAP Organizational Hierarchy?

What is hierarchy?
The informational elements necessary to manage and control business activities within application modules.

What do the elements in the hierarchy represent?

The companys legal (ex-company code), physical (plant), managerial (sales org) and control structure (cost center).

Why does hierarchy matter?

Hierarchy expresses organizational design and facilitates control and reporting.

How is hierarchy defined?

Some elements are defined globally across the organization (Ex Controlling Area, Operating Concern (Customer/Sales Profitability Database), some are at a business (Profit Center) or at a site level (Plant).

18

SAP Hierarchy Impacts

Master Data definition Complexity of transaction processing How business requirements are fulfilled Intra/Inter-organizational processing Reporting

19

SAP Data Structure

The fundamental data framework within the SAP system

Organization Structure

SAP Client

SAPs static informational and processing/parameter data

Master Data

On-line tasks which combine to form integrated business processes

Transactions

20

Simplified Finance Organization Structure SAP

Company Company Controlling Area (WPS) Company PA Company FL
Profit Center Standard Hierarchy Cost Center Standard Hierarchy

Group Chart of Accounts Operational Chart of Accounts

Controlling Area Company Code Profit/Cost Center Group Profit/Cost Center

Profit Center #1

Cost Center #1

21

Comprehensive View Of SAP Hierarchy Across Applications

Operating Concern Chart of Accounts Controlling Area Controlling Area

Company Code

Company Code

Purchasing Organization Purch Group Purch Group Cost Center

Profit Center

Plant

Plant

Cost Center

Sales Area

Sales Organization Work Center Distribution Channel Division Storage Location Storage Location Work Center

Financial

Matls Mgt

Sales/Distrib

Production
22

FICO Organizational Hierarchy

Client Chart Of Accounts Company code Controlling Area Cost Center / Cost Center Standard Hierarchy Profit Center / Profit Center Standard Hierarchy

23

Client
Definition
Unique, logical independent representation of The Companys business. There will be only one production client.

Key Relationships

Key Functionality

Highest Hierarchical Level in SAP

Client

Company Code

Company Code

Highest Hierarchical Level within an SAP instance Full functional and data integration within a client (minimal integration available across clients) Financial consolidations are possible across clients Data specified at client level is entered one time and applies to all company codes Can be used to differentiate between a Development, Quality Assurance, and Production System within ECC ... Must have one of these A logical grouping of company codes ... all areas of an organization that are to be integrated into the SAP ECC Production System should be included under one client A client key is used in all master records which ensures standardized data Data processing and analysis is carried out by client Access authorization is assigned by client
24

Chart of Accounts
Definition
A group of logically numbered accounts used to break down assets, liabilities, expenses and revenues in SAP

Key Relationships

Key Functionality

Defined on Client level

Client

Chart of Accounts

Company Code

Company Code

Each CoA can have several assigned Company Codes. The assignment of a Company Code to a CoA specifies all allowed General Ledger accounts for a company. If several companies are assigned to one CoA, it is possible to manage the accounts of several independent companies at the same time The Chart of Accounts contains the account number, the account name and control information for each G/L account master record. Several charts of accounts can be created per Client. Each Company Code must be assigned to one Chart of Accounts Each originating FI transaction in the SAP system is identified with an account from the chart of accounts. Meets the needs of both the internal management reporting requirements and the external reporting requirements. Minimum structure required to use FI (i.e., mandatory structure)
25

Chart of Accounts Overview - Illustration

.
70110620 FL Tax 70100 .PA Tax 610

.
18000520 - Investment 2 18000510 - Investment 1 .

..

54060500- Salaries 50010500 - Materials 40100100 - Sales

11000130 Cash Acct 3 11000120 Cash Acct 2

11000110 Cash Acct 1

Operating Chart of Accounts WPS1

Used Each

P & L Accts

Balance Sheet Accts

by all company codes GL account is mapped to a group acct

Company Code 1080 Company Code 1080 Company Code 1060 Company 1040 Company Code Code 1050 Company Code 1030 WPS-FL Company Code 1020 WPS-FL
4010010- Sales 5001050 - Materials 5405050 - Salaries 70100620 FL Tax

XXXXX - PA State Tax XXXXX - Office Supplies XXXXX - Telephone XXXXX - Material XXXXX - Investment XXXXX - Cash

Group Chart of Accounts WPSG

Summary Multiple

Level Account

operating GL accounts are

Company Code 1010 WPS-PA

4010010- Sales 5001050 - Materials 5405050 - Salaries 70100610 PA Tax

mapped to one group account

SAP

Group Account level is similar to

Hyperion account level

Note: Not all accounts defined within the chart of accounts must be used by every company code assigned to the chart
26

Group (Corporate) Chart of Accounts

Operational Account Assets
161200100 161200110 161200200 161200210 161200300 161200310 161200400 161200410

1xxxxxxxx
Buildings Buildings - FX adjustment Buildings in leasing Buildings in leasing - FX Building Improvements Building Improvements - FX Building Leasehold improvements Building leasehold improvements - FX

Group Account 1 xxxxx

161200 161200 161200 161200 161200 161200 161200 161200 Buildings Buildings Buildings Buildings Buildings Buildings Buildings Buildings

Group Accounts (Financial Statement Items) are true groupings of operational accounts At a group chart of accounts level, mapping is at a 1:1 level with Hyperion. Operational Account consist of 9-digits. Group Account consist of first 6-digits Advantage
-

Reduced number of accounts in Consolidations (Summarized) Ease of reconciliation

27

Legacy to SAP Coding Block Mapping

CA-Masterpiece
WPS PA (HFM) Kinston Company Org. Unit 101

SAP
Company Code Profit Center 1010 10110

PM&A

Statement Line

651

Functional Area

501

Plant General Salaries Not used

Department Major Minor

023 553

Cost Center

1011000006

Account 1

61111000

28

Components of G/L Master Data

CONTROL DATA FINANCIAL CONTROL

G/L Master Data

AUTHORIZATION

ACCOUNT MANAGEMENT

29

G/L Account Master

Master data elements are defined at a variety of organizational structure levels.
Level Data
Account Number Name Account type (Balance Sheet / Profit & Loss) Functional Area Account group Reconciliation Account Auto-post Only Document entry control (field selection) Currency Tax relevancy

Client

Company Code

30

G/L Account Master Data Characteristics

Company 1
Account Account

Control Management Entry Control

Document

Operating Chart of Accounts

G/L

Bank

and financial details

Account Number (P&L, Balance

Language

Description

Sheet)
Control Consolidation

Company 2
Account Account

Control Management Entry Control

Document Bank

and financial details

31

Types of GL Accounts

Auto-Post Only Accounts

Postings from SAP source modules or interfaces No manual journal entries allowed

Reconciliation Accounts
Control Accounts for subledgers (AR, AP, AA, MM)

Manual Posting Accounts Open Item Managed Accounts

For accounts which track offsetting postings AR and AP Reconciliation accounts are automatically Open Item Managed Account Clearing
Automatic or Manual With or Without Posting

32

Controlling Area
Definition
Organizational unit used to represent a closed system for cost accounting purposes.

Key Relationships
Linked to company codes Contain cost centers, WBS
Controlling Area Company Code Cost Center Company Code

Key Functionality
A controlling area may include single or multiple company codes that may use different currencies. For this implementation, there are multiple company codes assigned to one Controlling Area (WPS). Tool for standardizing cost centers, internal orders, and projects across companies Highest level for Controlling reporting across which information can shared and viewed within the Controlling Module (umbrella view of the enterprise). Allocation of costs between cost centers take place within one Controlling Area Company codes assigned to a Controlling Area must have the same Chart of Accounts and Fiscal Year

WBS

33

Company Code
Definition
Represents a legal entity where full financial statements are produced. Have a company code-specific dimension of the chart of accounts.

Key Relationships

Key Functionality

Company codes are linked to a controlling area

Controlling Area Company Code Company Code

The minimum structure required to use FI (i.e., mandatory structure) Assignments required at this level include: Home country Fiscal Year Chart of Accounts Accounting Currency Base Language Periods, postings, and currencies are driven by company code Represents a legal/tax entity Level of External Reporting or Legal Sets of Books

34

Numbering Conventions for Company Codes Company Code: 4 positions

1xxx 2xxx 3xxx 4xxx
Asia Pacific Region Europe Region South America Region North America Region

Profit Center: 5 positions

1st position: geographic region (1=NAR, 2 = SAR, 3=Europe, 4=AP) 2nd position: number block is assigned to different business segments/units 3rd to 5th position: sequential number within each business segment/unit

Cost Center: 10 positions XXXXX XXXXXX

Sequential counter North America Region
35

Controlling Area and Company Codes Overview

Chart of Accounts WPS1

Controlling Area
WPS-PA 1010
WPS-DE Acquisition

WPS-FL 1020 MediMop 1060

WPS-DE 1030 Intl Sales 1070

Maumee Lab 1040

1050

WPS
36

Future Company Codes

Profit Centers
SAP Definition
The Profit Center is a subdivision of a business organization that is set up for internal management control purposes. Profit Centers are used to categorize revenue and expense by responsibility within the organization. These areas of responsibility (Profit Centers) could be based upon regions, functions, or products.

Definition pertaining to this implementation

The company requires P&L and balance sheet reporting at the plant level, hence a profit center is created for each plant. Profit centers are also created for other responsible profitability areas. Profit center number convention is as follows: 1st position: geographic region (1=NAR, 2 = SAR, 3=Europe, 4=AP) 2nd position: number block is assigned to different business segments/units 3rd to 5th position: sequential number within each business segment/unit. Initial assignment is in increments of 10 (general rule).

37

Profit Centers Hierarchy

SAP Definition
The standard hierarchy is a tree structure that displays the organization of all the Profit Centers in one Controlling Area. Profit Centers can be grouped in a standard hierarchy so that they roll into a user-defined management entity. All Profit Centers must be assigned to the standard hierarchy.

Definition pertaining to this implementation

One standard profit center hierarchy is defined to reflect the current management reporting structure. Additional Profit Center hierarchies (Profit Center groups) can be created so that more than one roll-up view is possible.

38

Profit Centers Standard Hierarchy

39

Example of Profit Center Master Data

40

Cost Centers
SAP

Definition

A Cost Center is the lowest organizational unit representing a clearly defined location where costs are incurred. Cost centers are linked to a single controlling area, a single profit center, and to a single company code.

Definition

pertaining to this implementation

Cost Centers are established for each facility within a company code. The criteria for defining the companys cost centers is:
Organizational unit where managerial responsibility can be clearly defined Organizational unit where costs incurred in the proposed area are significant enough to justify its establishment Cost Center should have a responsible person assigned Cost Centers cannot cross physical locations (i.e. profit center) and/or legal entities

Cost centers will be linked to a profit center to gain a divisional view of expenses.

41

Cost Centers Standard Hierarchy

42

Example of Cost Center Master Data

43

Functional Areas

SAP Definition
A functional area is an organizational unit within accounting that structures your business organization according to the requirements of Cost-of-sales accounting. Each cost center is assigned to one functional area, and is irrevocable after cost posted. Functional areas allow a higher level of summarization of operating expenses in reporting. Cost Center categories are used to map to the functional area.

Definition pertaining to this implementation

The company will use a number of functional areas in order to achieve functional Profit & Loss analysis. The functional areas will be derived from the respective cost center master record. Functional Area is defined with a 3-digit number.

44

Functional Area Hierarchy

SAP Definition
A functional area is an organizational unit within accounting, which structures your business organization according to the requirements of Cost-of-sales accounting. Functional areas allow a higher level of summarization of operating expenses in reporting. Cost Center categories are used to map to functional area.

Definition pertaining to this implementation

The company will use a number of functional areas in order to achieve functional Profit & Loss analysis. The following functional areas will be derived via the substitution rules referenced above. Functional Area is defined with a 3-digit number. See next slide. Functional Area Hierarchy is defined for summary level reporting purposes.

45

Functional Area Hierarchy (1)

46

Functional Area Hierarchy (2)

47

Functional Area Hierarchy (3)

48

Reporting: Balance Sheet

Reporting Levels
Company Company Company Code Code Code
- Primary Balanced Books - Balanced Books at Statutory / Legal Entity Level Balance Sheet
As at xx/xx/xx

Assets
FI

xxxxx xxxxx xxxxx

Liabilities FAGLFLEXT (0L) Main Financial Summary Table Equity

Profit Center Profit Center Profit Center

- Secondary Balanced Books* - Balanced Books at a Divisional / Business Unit Level

Segment Company Segment Code

- Secondary Balanced Books* - Balance Books at a management Segment Level

- Report line definition based on groupings or sets of accounts - Standard FI account grouping called Financial Statement Version - Sets of accounts may also be maintained using standard account grouping and/or set functionality NB The set concept permeates SAP

49

Reporting: Profit and Loss Statement

Reporting Levels
Company Company Company Code Code Code
- Statutory / Legal Entity Level P&L
FI

P&L
Statement

Actual vs. Plan

Sales COGS

xxxxx xxxxx

Profit Center Profit Center Profit Center

FAGLFLEXT (0L) Main Financial Summary Table

G&A xxxxx FIN xxxxx MKTG xxxxx LEGAL xxxxx . . Non-Op xxxxx

- Management Divisional / Business Unit Level P&L Cost Center Group

- Report line definition based on combinations of groups or sets of accounts AND/OR Functional Area - 100% reconciliation between FI/CO - Management reporting* driven via the Profit Center Hierarchy - Management reporting may be run independently from Legal Entity reporting - Ideally, single account set hierarchy should be maintained and used as source for all P&L maintenance once, use everywhere NB The set concept permeates SAP
50

Cost Center

Cost Center

- Management Divisional / Department Level Cost

Segment Company Segment Code

Assets
Profit Center Hierarchy Profit Center Hierarchy
Company Company Code Code Company Code 11 Company Code Company Code 22 Company Code Company Code 33 Company Code

Profit Profit Center Center

Plant 1 Plant 1
Balance Sheet Asset Cost xxxxxx Accum. Depr. xxxxxx P&L Statement Depr. Exp. xxxxxx

Plant 2 Plant 2
Balance Sheet Asset Cost xxxxxx Accum. Depr. xxxxxx P&L Statement Depr. Exp. xxxxxx

Plant 3 Plant 3
Balance Sheet Asset Cost xxxxxx Accum. Depr. xxxxxx P&L Statement Depr. Exp. xxxxxx

Cost Cost Center Center

Cost Center 1 Cost Center 1

-Depreciation

Cost Center 2 Cost Center 2

Expense
-Depreciation

Cost Center 3 Cost Center 3

Expense
-Depreciation

Expense

Asset 1 Asset 1

Asset 1 Asset 1

Asset 2 Asset 2
Depreciation Area
51

Asset 3 Asset 3

Topic Review
Now that you have completed this topic, you should be able to:

Understand the SAP Organization Structure Define the Elements of FICO Understand the SAP FICO Hierarchy Describe the integration of FICO with other SAP modules

52

SAP Master Data

Master Data records are created once and reused throughout the system

SAP Master Data includes the following examples:

Vendors: Materials:
Material Master Description of each product When to purchase When to purchase or produce Storage instructions Shipping restrictions Contract information Reconciliation Account

Customers:
Past sales Credit information Special shipping information Pricing Address Banking details

Assets:

Asset description Remaining life Book Value Indentification information

53

FICO Master Data

Vendor Master Customer Master

54

Vendor Master Data

Vendor Master Design

NAME ADDRESS TELEPHONE FAX E MAIL BANK ACCOUNT VAT REGISTRIATION NUMBER LANGUAGE

GENERAL DATA

PURCHASING ORGANISATION DATA Order Currency Incoterms

ACCOUNTING DATA

Company Code Specific

RECONCILIATION ACCOUNT PAYMENT TERM BANK INFORMAITON

55

Customer Master Data

Customer Master Design

NAME ADDRESS TELEPHONE FAX E MAIL BANK ACCOUNT VAT REGISTRIATION NUMBER LANGUAGE Credit Control Area Specific
Credit Management Information

GENERAL DATA

SALES ORGANIZATION DATA Order Currency Incoterms

ACCOUNTING DATA

RECONCILIATION ACCOUNT PAYMENT TERM BANKING INFORMAITON

Company Code Specific

56

Agenda
Course Objectives FICO Applications and Integration FICO Organization Structure & Master Data FICO Terms & Concepts

57

Transactional Data

Document Process

Data is pulled from Org Structure and Master Data and populated on SAP documents SAP does not re-read Org Structure and Master Data for the latest updates for documents that are already created SAP Programs utilize Process Data for Document processing logic

Process Data

Posting Keys Document Types Order Types Order Numbers Invoice Numbers
58

Delivery Types Purchase Order Types Movement Types Item Categories Condition Types

Document Principle

SAP term for any business activity (transaction) entered into the
system

Journal Entry Goods receipt

Documents contain the following:

Header information Individual line items (includes) Document type (e.g., invoice, journal entry) Unique document number within each type

Provides an audit trail to the originating source document and

all related internal SAP documents

59

Document Types

2 Character key that distinguishes the business transactions to

be posted.

The document type Determine Plants where the document is

stored as well as the account types to be posted.

Document type

Purpose Postings to G/L

Reversal Document type

SA

AB

60

Standard Document Types

Document types differentiate business transactions

and control document filing.
AA AB AN DA DG EU EX KA KG KR KZ ML PR RA RE Asset posting Accounting document Net asset posting Customer document Customer credit memo Euro rounding diff. External number Vendor document Vendor credit memo Vendor invoice Vendor payment ML settlement Price change Sub.cred.memo stlmt Invoice - gross RN RV SA SB SU TB TP TR WA WE WI WL ZR Invoice - net Billing doc.transfer G/L account document G/L account posting Adjustment document Treas. Elec. Bnk Stm Treas. Payment Rev. Treas. Posting Goods issue Goods receipt Inventory document Goods issue/delivery Bank reconciliation

61

Document Posting

The SAP document principle ensures that every transaction

posted in each module creates a document.

All documents are cross-referenced.

A material movement document is linked to its related FI G/L document Inter-company documents are linked to the corresponding documents in each company code G/L documents are linked to cost objects if related to P&L accounts

62

Posting Keys Key that controls how line items are posted Specify posting logic Debit versus credit entry Assigned to account types which allows account validation
Posting Keys 01 11 31 21 15 25 40 50 Description Customer Invoice Customer Credit Memo Vendor Invoice Vendor Credit Memo Incoming Payment Outgoing Payment GL Debit GL Credit
63

Parked Documents

Used to enter and store (park) incomplete documents without

carrying out extensive system check.

Two reasons to used Parked Documents

To change any of the entered data without having to reset/reverse a document To comply with approval procedures

64

Open Items

Unfinished transactions are Finished when:

The identical offsetting amount is posted to the account The offsetting amounts are cleared manually or automatically
For example, a vendor invoice that has not been settled remains in the vendor account as an open item until it is paid. Accounts that can be managed on an open item basis G/L Accounts G/L Accounts Customers Customers Vendors

65

Account Clearing

Procedure by which the open items belonging to an account

are indicated as cleared (paid).

Open items can be cleared if the credit amount used to clear

the item equals the debit amount of the item to be cleared.

Credit US$45 Debit US$45

Clearing

Balance ZERO

G/L account before Clearing

66

G/L account after Clearing

Posting in the GL to Create Documents

In this example, a posting for depreciation expense and accumulated
depreciation is made in the FI ledger.

As the depreciation posting is an expense, it also creates a posting in the

CO ledger. The FI and CO ledgers will be in balance with each other.

FI

Posting

640001 Depreciation 100

150094 Accum. Depreciation 100

CO Posting

Cost Center 10900

Cost Element Amount 640001 100

67

Course Review
Now that you have completed this course, you should be able to:

Define the new SAP terms and concepts in Finance Describe the Finance business processes Define the FICO organization hierarchy Describe the integration with other SAP modules Describe the basics of General Ledger in SAP Define the basics of data and documents in Finance

68

Congratulations you have Completed the Finance Process Overview Course

69

Questions

70