FINANCIAL ACCOUNTING
OVERVIEW
CONTENT
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Chapter 01 - Enterprise structure
Chapter 02 - General Ledger
Chapter 03 - Accounts Payable
Chapter 04 - Accounts Receivable
Chapter 05 - Asset Accounting
Chapter 06 - Cash Management
Chapter 07 - Miscellaneous
Enterprise structure
Organizational Structures in R/3
Operating Concern
CO
CO
Controlling Area
SD
Purchasing Organizations
Company Codes
FI
Valuation Areas
MM
Plants
Sales Organizations
MM
Storage Locations/ Batch/
Special Stocks
MM
MM
Legal entity : company code
Organizational Structures in R/3
Overview Organization Entities in Finance
Client
Chart of
Accounts ONTX
Deprec Area
Belg
Deprec Area
Nede
CoCd
0100
CoCd
0200
Deprec Area
De
CoCd
0300
Deprec Area
TR
CoCd
0310
CoCd
0800
General Ledger
General Ledger
Master Data
–G/L Accounts
Transaction Data
–Document types : header + line items
–Postings
Closing procedures
–Monthly
–Yearly
Reporting
–Group
–Legal
Master data : Chart of accounts concept
Master data : Chart of accounts concept
Client
G/L Account data
Add. G/L
Account data
Chart of
Accounts
ONTX
Company
0100
Company
0800
G/L Account 1730000
Bal. sheet account
Account group
Fin.
.
.
Company
CurrencyYTL
Line item
display x
0800Company
CurrencyEUR
Line item
display x
bank
X
0
Master data : Chart of accounts concept
Master data : take over - mapping
Approach
• Map local accounts to operational accounts
• Identify additional local accounts
• Translate used accounts in Turkish (short/long)
• Copy accounts to company code
• Load alternative (local) chart of accounts
• Timing : finished at end of blueprint phase
Transaction Data : document types
One Business Transaction = One Document
BT
BT
BT
Transaction Data : document types
Structure of a document
Header Data
Line item Data
Transaction Data : document types
Document Header
Document header
Posting date
Line item 1
Document number
Line item 2
Document type
Line item 3
Currency
...
Balance = 0
Transaction Data : document types
Document type = journal
Outgoing
invoice
Incoming
invoice
Bank
e.g. RX
e.g. KR
e.g. SB
Transaction Data : document types
Number Ranges
SAP Documents
Master Data
Internal
Assignment
External
Assignment
Number
Range
Transaction Data : document types
Document Line Item
Document header
Line item 1
Line item 2
Posting keys
Special G/L transactions
Automatic Line items
Additional Account
Line item 3
Balance = 0
Additional Assignment
Transaction Data : document types
Posting keys
DEBITS
PK
01
CUSTOMERS:
02
Credit Memo
05
Payment
PK
21
22
VENDORS:
Invoice
25
Payment
PK
40
G/L a/c:
60
80
Invoice
Reverse
CREDITS
PK
Invoice
11
12
Credit Memo
Reverse
Outgoing
15 Incoming
Credit Memo Payment
PK
31
Invoice
Reverse
32
Reverse
Credit Memo
Outgoing
35 Incoming
Debit entry Payment
PK
50 Debit entry
...
...
70
90
...
...
Transaction Data : document postings
Posting periods : central maintenance
16
Transaction Data : document postings
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Tax Codes are country specific
Taxes on Sales/purchases
Tax base for tax calculation
All required tax rates defined
Determination of due dates for tax payment
Tax calculation procedures
Tax base for cash discount
Dependent taxes as surcharges or deductions
Division into deductible and non-deductible taxes
Month-end closing
General
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Balance sheet preparations
Block postings to previous month (consollidation dpt.)
Advance return for tax on sales & purchases
Balance sheet & P+L statement for the month
– Financial statement versions
• Document and reconcile Posting Data
• Create balance audit trail
• …
Month-end closing
Ontex closing & reporting
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Integrity checks
Splitting up turnover by product group & country (MCSI)
Upload to Frango (ZFR10)
VAT declaration
Stock list (MRN9)
Revaluation (F.05)
Splitting wages & salaries (for consolidation purposes)
Wages upload
Year-end closing
• Maintain posting periods
• Balance lists for previous fiscal year
• Account balances carried forward (Turkish specific)
• Reconcile balances
• Balance sheet preparations
• Block postings to old fiscal year
• Create balance sheet & P+L statements
• Transaction summaries (compact journal + balance lists)
• Balance audit trail
Accounts Payable
Accounts payable
Master Data
–General, legal, purchasing view
Transaction Data
–Logistics Invoice Verification
–Payment program
Closing procedures
–Regrouping
Reporting
Master data : vendors
Vendor master Record
General data:
Weyerhaeuser (900893)
Washington
Bank detail:
BE 685-0497019-59
Client
Company
0100
Company
0800
Company 0100
Reconn.acct 44000000
Pmnt terms ZB01
Sort line
items
001
Company 0800
Reconn.acct 44000000
Pmnt terms ZB02
Sort line
items
002
Master data : vendors
Intercompany
• In each company code, others entity of the Group Ontex are identified as a
customer account and a vendor account.
• In consequence, all internal trade will be done in relation with those numbers.
• Those accounts contain specific trading partner number.
• All intercompany vendors start with V (e.g. V3400 = Astel)*
* Cfr. Customers – but start with I (e.g. I3400 = Astel)
Transaction data : LIV
Purchase
order
Logistics Invoice Verification
MIRO
Goods
receipt
Invoice
receipt
Transaction data : LIV
Transaction data : payment program
Payment Program
Customer/
Vendor
Master
Records
Basic
payment
control data
1
Input
parameters
Payment
proposal
run
Proposal
data
2
Payment
run
Print
program
Print
data
5
4
Edit
Documents
Bank
Transfer
Cheque
3
Summary
Report
Pay
Advice
Closing procedures
• Intercompany reconciliation (F.2E)
• GR/IR clearing : F.13
• GR/IR clearing (incl. tolerances) : MR11
• GR/IR split : F.19
• Regrouping : investment invoices (F101)
• Clear down payments (F-44)
• Clear customers/Vendors (e.g. rebate agreements)
• Balance carry forward
Reporting
Purchasing journal (ZFPJ)
Accounts Receivable
Accounts receivables
Master Data
–General, legal, sales organisation view
–Credit management (FD32)
Transaction Data
–Billing
–Noted item (test)
–Dunning
Closing procedures
–Doubtful debtors
–Revaluation
Reporting
–Aging balance
–Sales journal
–Credit management (f.31)
Master data : customers
Customer master Record
General data:
Lidl België (207)
Gent
Client
Company
0100
Company
0800
Company
Recon.acct
Pmnt terms
Sort line
items
0100
40000000
A114
002
Company
Recon.acct
Pmnt terms
Sort line
items
0800
40000000
A214
001
Transaction data : billing
All customer invoices/credit notes are posted via SD – no manual (financial)
invoices possible !
Transaction data : noted items
Transaction data :dunning
Customer
Vendor
Master
Records
Dunning
notices
Basic dunning
parameters/data
1
Input
parameters
Documents
Dunning
print
&
update of
records
Proposed
dunning
notices
Dunning
program
2
4
Edit
proposal
3
Transaction data :dunning
Dunning Configuration Program
• Dunning procedure
– Dunning interval
– No. of dunning levels
– No. of grace days
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Dunning levels
Dunning notice sort fields
Dunning blocks
Dunning texts
Closing procedures
Transfer
doubtful
debtors
(F103) to
other balance
sheet
reconciliation
account
Reporting
Aging
balance
Reporting
Sales
Journal
Asset Management
Asset Management
Master Data
–Master data, default values & asset explorer
Transaction Data
–Acquisition, transfer, retirement
–Assets under construction
Closing procedures
–Periodic posting
–Depreciation run
Reporting
–Depreciation table/year
Master data : assets
•Divided in different asset classes :
–Per class possibility to assign to different accounts
–Specific screen layouts
–Default values for depreciation areas
•Per country a specific chart of depreciation
•Different valuation per depreciation area – possibility to have different APC value,
depreciation start date, useful life :
–Area 01- Book depreciation
–Area 02- Tax depreciation
–Area 40- IAS (group depreciation)
•Possibility to link multiple sub-assets to a main number
•Integration with CO via cost center or internal order
Transaction data
•Acquisition :
–Via MM – purchase order
–Via FI – from external vendor/affiliated company
•Transfer :
–From one asset to another without losing details
•Retirement :
–Sell with/without gain
–scrapping
•Assets under contruction :
–Gather all costs related : spare parts used, overhead, new parts bought,…
–Follow up budget (if applicable)
–Capitalize final asset(s) via settlement
Closing procedure
Periodic posting (ASKBN)
Closing procedure
Depreciation run
Reporting
Depreciation details
Reporting
Link with balance sheet
Cash Management
SAP is an
integrated package
Integration in the SAP System
Sales and Distribution
Materials
Management
Production Planning
Quality Management
Financial Accounting
SD
FI
CO
MM
PP
QM
AM
R/3 for
Client/Server
PS
ABAP/4
HR
Human Resources
R/3 4.7 :
Client/Server :
ABAP/4 :
Version of the SAP system
Architecture used in SAP
SAP’s programming language
Assets Management
Project System
WF
PM
Plant Maintenance
Controlling
IS
Work Flow
Industry Solutions
Basic Components of the R/3 System…
Long-term
CO
FI
Capital Resources
Short-term
AM
Capital
Investments
Expense costs
Cash
Financial Accounting:
FI
•General Ledger
•Accounts Receivable
•Accounts Payable
Controlling:
CO
AM
•Cost Center Accounting
•Profitability Analysis
•Product Costing
Assets Management
•Control & Identification of property, plant and equipment
Basic Components of the R/3 System…
Logistics Process
Procurement
Production
Purchase Orders
Supplier
Processes
 Materials

Sales
Orders
 Products
Services

MM
Services
PP
SD
Customer
Material Resources
MM
Materials Management
Sales & Distribution
•Receiving
•Inventory Management
•Procurement (purchasing)
•Vendor evaluation
•Order Management
•Quotations
•Pricing
•Credit Management
•Delivery/ Invoicing
SD
Production Planning
PP
•Forecasting
•Master Production Schedule
•Materials Requirements Planning (MRP)
•Production Reporting
•Production Orders
SAP is an integrated tool
Sales Order
Customer
Shipment
Credit Limit
Sales &
Distribution
Material Availability Check
Transfer of Requirements
Goods Issue to SO
Invoice
Sales Forecast / Plan
Production Order
Production Order Receipt
Production
Planning
Production Cost
Materials
Management
Accounting Document
Goods Receipt
Invoice Receipt
Receivable Accounts / Cash Receipt
Finance &
Controlling
Accounts
Payable
Vendor
Integration Points SD, FI-AR, FI-GL, CO-PA
Sales order request (1)
Credit Limit check (2,3)
Customer DB
SD
Send goods and
Send Invoice (4)
Post receivable (5)
Release to
Accounting
Sales cost if.;
product, quantity,
revenue, costs (7)
CO-PA
AR
Post Sales to revenue account; offset
to G/L account receivable post
reduction in e.g. inventory
offset logs (6)
G/L
Receive invoice
payment (8)
Reduce receivable
and offset
cash account (9’)
Integration Points MM, FI-AP, CO, FI-GL
Goods receipt
from vendor ( 4 )
Purchase
order
send to
vendor ( 3 )
MM/PP
Invoice receipt
against
purchase order
(6 )
Open item
cost posted
to
CO-orders or
Cost Center (
2)
CO
Production
order request
(internal from SD) (
1)
Vendor DB
Post payable to vendor account ( 7 )
AP
Invoice payment
to vendor ( 9 )
Post payable
to
G/L account/
offset GR-/
IR account ( 8
)
Reduce payable in
G/L reconciliation
account/ offset cash
account ( 11 )
Post expense on cost center
or production order (14 )
G/L
Settle order (that can be capitalized) to work
in progress account/ offset to expense account (15 )
Questions