Curriculum Congress:
A Look @ R3 FI / CO
Edmund Manrique
Chicago District
Consulting Manager
March 17, 1999
Overview
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Audience
n University Administrators
n Professors
n Students
Purpose
n What is SAP?
n Overview of R/3 modules
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Fi Finance
Co Controlling
The R/3 Integration Model
SD
FI
Sales &
Distribution
Financial
Accounting
MM
PP
CO
Materials
Mgmt.
Production
Planning
AA
Asset
Accounting
R/3
QM
Quality
Mgmt.
Controlling
PM
PS
Client / Server Project
System
ABAP
WF
Plant
Maintenance
HR
Human
Resources
Workflow
IS
Industry
Solutions
Views of an Organization
LEGAL/
EXTERNAL
What will be our
tax liability for the
current period?
RISK &
LIQUIDITY
What is the
minimum level of
liquidity for the given
level of risk?
MANAGEMENT
How profitable
was our service
department?
MARKET ANALYSIS
Which was our least
profitable product
segment in the
Southern region?
Financial and Management Accounting
Tax
Authorities
Shareholders
Journalists
Media
Bankers
Legal
Authorities
Insurers
Auditors
Executive Officers
Senior
Administrative
Management
Staff
Controllers
Operations Staff
Financial
Analysts
SAP Module Integration
Invoices
A/R Balances
Sales and
Distribution
Credit Check
Profitability
Inventory Balances
SD
Financial and
Controlling
Requirements
R/3
Availability Checks
Product Costing
A/P Balances
Materials Management/
Production Planning
MM/PP
FI/CO
Financial (FI) vs. Controlling (CO)
FI
CO
ðExternal Reporting
Internal Reporting
ðRegulatory Compliance
Ad Hoc
ðCPA
CMA
ðStockholders
Internal Management
ðHistorical
Forecasting
R/3 Financial Accounting Applications
FI
Financial Accounting
Modules
FI-GL
General Ledger Accounting
FI-AR
Accounts Receivable
FI-AP
Accounts Payable
FI-LC
Legal Consolidation
FI-SL
Special Purpose Ledger
FI-AA
Asset Accounting
FI-FM
Funds Management
FI-TM
Travel Management
FI: Financial Accounting (1 of 3)
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The Financial Accounting component
meets the international demands of a
company's financial accounting
requirements using an open,
integrated data flow and simplifies
financial decision making.
All postings between different
applications in the R/3 system are
made real-time. For example, if you
post to the "Accounts payable"
subledger, the system automatically
makes an updating entry to the
general ledger.
FI
FI: Financial Accounting (2 of 3)
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FI
The R/3 Financial Accounting component is divided into the following
areas:
n FI-GL General Ledger Accounting. The central task of G/L accounting
is to provide a comprehensive picture of external accounting and of
the accounts involved therein.
n FI-LC Consolidations. Its’ task is to combine the financial operating
results of the companies within a group to provide overall results for
the group. These overall results show the financial position as if the
consolidated companies were a single economic unit.
n FI-AP Accounts Payable. A/P administers the accounting data for all
vendors. It is also an integral part of the purchasing system.
n FI-AR Accounts Receivable. A/R administers the accounting data of
customers. It is also an integral part of sales management.
 SAP AG
FI: Financial Accounting (3 of 3)
n FI-AA Asset Accounting This module encompasses the entire
lifetime of assets from the initial acquisition up to the
retirement. The system calculates the values for depreciation,
interest and other values.
n FI-SL Special Purpose Ledger provides summary
information from multiple applications at a level of detail that is
user defined.
n Funds Management Supports financial checking and control
using budgeting techniques.
n Travel Management The Travel Management module offers a
complete range of procedures for processing business trip data,
from entering and approving a travel request, to posting the
actual trip costs. Integration with Controlling (CO) and Payroll
Accounting (HR Payroll) guarantees correct and efficient
posting, taxation and payment of trip costs.
 SAP AG
FI
CO: Controlling
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CO
Controlling includes all functions required for internal managerial
accounting and covers different areas for control.
n CO-OM Overhead Cost Controlling Overhead costs are costs that
cannot be assigned directly to the cost of goods. They are divided
into direct and indirect costs. The purpose of CO-OM is planning,
allocating, controlling and monitoring overhead costs.
n CO-PC Product Cost Controlling Product costing is a tool for
planning costs and establishing prices for materials. It is used to
calculate the costs of goods sold for each product unit.
n CO-PA Profitability Analysis Lets you evaluate segments of your
business operations -- defined according to products, customers,
orders, and any combination of these or other organizational
structures (such as sales organizations or business areas) -- to
determine their contribution to your company's profits.
 SAP AG
EC: Enterprise Controlling
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EC
Enterprise Controlling is used to control the entire group and help ensure
its long-term success. It provides information about all the factors which
influence the activities of the group and provides the user with important,
up-to-date information, which can be analyzed quickly. Information can be
collected and evaluated from a wide variety of both the group's own
departments and its environment. Enterprise Controlling is divided into
the following areas:
l EC- PCA Profit Center Accounting Lets you analyze
internal profit and loss for profit centers. It is typically
responsibility driven.
n EC- EIS Executive Information System Provides information about all
the factors which influence the business activities of a company. It
combines data from relevant external and internal sources.
n EC- Consolidations- Consolidation groups are created for profit
centers to be consolidated.
 SAP AG
IM: Capital Investment Management
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IM
Capital Investment Management includes functionality for managing
multiple investment budgets and individual capital investment
measures from planning to execution to the settlement of measures in
Asset Accounting or to any receiver (for example a cost center). The
role of investment management in R/3 System accounting is to
support the capital investment and financing process as it relates to
tangible assets.
 SAP AG
Edmund.Manrique@SAP.com