SAP Financial Reporting
• Aims & Objectives
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Introduction to SAP financial modules
Understanding of SAP cost objects
Overview of University accounting structure
Outline of available reports
Confidence in using reports
SAP Help
• Documentation
• ISS website
http://www.leeds.ac.uk/iss/infosystems/
• SAP on-line help
• Superusers
• Helpdesk  33333
What is SAP?
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Enterprise Resource Planning system
SAP world’s largest ERP software supplier
Based in Walldorf, Germany
Implemented at Leeds in April 1999
Continuing programme of development
Components of SAP
Finance
Logistics
• Purchasing
• Sales
• Production
• Project System
Human Resources
• Personnel Management
• Payroll
Reporting Requirements
Financial
Accounting
Management
Accounting
• Income & Expenditure
• Balance Sheet
• Cash Flow
• Department Costs
• Project costs
• Costs v plan
SAP Finance Modules
FI
Financial Accounting
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CO
External Accounting
Financial Statements
Legal Requirements
Standards
Controlling
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Internal Accounting
Cost Reporting
Management Accounting
Flexible
Components of Controlling
CO
OM
Overhead Cost Controlling
• How high are the costs of organisational activities?
• Are they within budget?
CO
CEL
Cost & Revenue Element Accounting
• What costs occur within our organisation?
EC
PCA
Profit Centre Accounting
• How profitable are the enterprise areas?
SAP Cost Objects
• Used to track where costs occur within the organisation
CO & PS
Controlling &
Project System
Balance
Sheet
Cost Objects
Internal
Orders
Cost
Centres
Project
System
WBS
Elements
}
Profit
Centres
Cost Centres
• An organisational unit within SAP to which costs (and income) can
be assigned
• Six digit number e.g. 252000
• Used to track costs of departments/major activities
Cost Elements
• Used to collect and summarise costs according to classification
• Five digit number e.g 50010
• Main ranges:
• 40000 to 49999
External Income
• 50000 to 69999
External Costs
• 70000 to 74999
Internal Income
• 75000 to 75999
Internal Costs
• 80000 to 89999
Secondary Transfers
Cost Element Groups
• Cost elements can be combined into groups of the same type
• Used to create reports
• Standard reporting group REP_01
• Displays costs within main University budget headings
Example
• KAH3
- Display cost element group
Cost Centre Structures (1)
Standard hierarchy
• Tree structure containing all cost centres
• Reflects University accounting structure
• Core activities - DC
• Other services - DS
• Restricted funds - OR
• Endowment funds - EN
• Research awards - RG
Cost Centre Structures (2)
Department Codes
• AUVI - Media Services
• CSER - Careers
• INSS - ISS
• LACE - Language Centre
• LIBR – Library
Example: DC-RC-LIBR – Library core activities
Cost Centre Structures (3)
Alternative cost centre groups
Academic
Services
Library
381513
SAP Support
ISS
Careers
381652
SAP Projects
• Can report on individual cost centres or groups of cost centres
Cost Centre Structures (4)
Examples
• OKENN - Display cost centre standard hierarchy
• KSH3
- Display cost centre group
Internal Orders
• Cost object used to monitor costs at a detailed level
• Eight digit number e.g. 95000001
• Linked to cost centre – provides sub-analysis
• Simplifies cost centre structure
• Used to track costs of individual activities e.g. projects, short courses
The Internal Order/ Cost Centre relationship
78500001
Internal Order
78500002
Internal Order
278520
COST CENTRE
78500003
Internal Order
Many to One Relationship
Internal Order Groups
• Orders can be grouped into a structure
• Many levels as required
• Maintained by departments – no standard hierarchy
• Used for planning and reporting
Internal Orders
RC_HECS
Internal
Order
TEACHING
TEACHING
DIRECT
78515000
RESEARCH
OTHER
TEACHING
OTHER
78515001
78515002
Internal
Orders
Groups
Internal Orders
Examples
• KO03 - Display internal order master data
• KOH3
- Display internal order group
Reports
• Cost
centre reports
• Internal order reports
• Report navigation
• Printing reports
• Exporting to Excel