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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Configuration Agenda
 Enterprise Structure
 Business rules and parameters
 Master data
 Process execution (testing)
 Exercises
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Configuration 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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Configuration Enterprise Structure
Operating
Concern
CO-PA
CO-PCA, COOM, CO-PC
FI
SD, MM, PP,
etc.
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Controlling
Area
Company
Code
S-Org POrg Plant,
etc.
Controlling
Area
Company
Code
S-Org POrg Plant,
etc.
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Configuration 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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Configuration 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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Configuration Business Area
 Internal divisions of the enterprise
- Define areas of responsibility
 Financial statements are generated for business areas
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Configuration Operating Concern & Controlling Area
 Operating Concern:
Operating
Concern
Controlling
Area
Company
Code
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GL00
NA00
US00
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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Configuration Credit Control Area
 Responsible for customer
credit
 Centralized
- Once CCA for the
enterprise
GBI
Enterprise
Credit Control
Area
Company Code
GL00
US00
DE00
GL##
US##
DE##
 Decentralized
- Multiple CCA for the
enterprise
- Example: North
America, Europe, Asia
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Configuration Agenda
  Enterprise Structure
 Business rules and parameters
 Master data
 Process execution (testing)
 Exercises
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Configuration Business Rules and Parameters
 Global parameters (for CC)
 Account groups
 Field status variants
 Posting periods
 Number ranges
 Tolerance groups
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Configuration 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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Configuration 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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Configuration Agenda
  Enterprise Structure
  Business rules and parameters
 Master data
 Process execution (testing)
 Exercises
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Configuration Master Data
 Chart of accounts
 General ledger accounts
 Subsidiary (sub)ledgers
 Cost elements
 Cost centers
 Statistical key figures
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Configuration 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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Configuration 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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Configuration 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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Configuration Master Data: General Ledger Accounts
Demo
•
•
•
Show available chart of accounts
Show examples of GL accounts
Show segments of data
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Configuration 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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Configuration Master Data: Sub-ledger and Reconciliation Accounts
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Configuration 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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Configuration Master Data: Cost Center Hierarchy
Demo
•
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Cost center
hierarchy
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Configuration 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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Configuration 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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Configuration 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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Configuration Agenda
  Enterprise Structure
  Business rules and parameters
  Master data
 Process execution (testing)
 Exercises
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Configuration 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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Configuration Agenda
  Enterprise Structure
  Business rules and parameters
  Master data
  Process execution (testing)
 Exercises
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Configuration 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.)
- Don’t forget them!!!!
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Configuration Exercises
Enterprise
Structure
Rules and
Parameters
Master Data
I.1.1: Define Company Code
3
I.1.2: Define Business Area
5
I.1.3: Define Empty Chart of Accounts
6
I.1.4: Maintain Controlling Area 7
I.1.5: Define Credit Control Area 8
I.1.6: Define Variants for Open Posting Period
I.1.7: Define Field Status Variants
10
I.1.8: Enter Global Parameters 11
I.1.9: Assign Company Code to Controlling Area
I.1.10: Assign Controlling Area to Operating Concern
I.1.11: Define Standard Hierarchy
14
I.1.12: Assign Permitted Credit Control Areas
I.1.13: Maintain Company Code for Materials
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Process
Execution
9
12
13
15
16
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Configuration Exercises
I.1.1: Define Company Code
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: SAP Customizing Implementation Guide ► Enterprise Structure ► Definition ► Financial
Accounting ► Edit, Copy, Delete, Check Company Code
In the “Choose Activity” pop-up, double-click on Edit Company Code Data.
Navigation
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Configuration Exercises
Tasks and Data Entry:
In the “Change View “Company Code”: Overview” screen, click on the
icon.
In the “New Entries: Details of Added Entries” screen, enter the following information:
Attribute
Company Code
Company Name
City
Country
Currency
Language
Description
An organizational unit within financial accounting.
Name of Company Code or Company
City name in an address.
The country key contains information which the
system uses to check entries such as length of the
postal code or bank account number.
Currency key for amounts in the system.
The language key designates the language in which
you display texts, enter texts, or print documents.
Data Value
US##
## Global Bike Inc.
Dallas
United States
United States Dollar
English
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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Configuration 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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Configuration 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!)
Don’t give these to students
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Configuration Agenda
  Enterprise Structure
  Business rules and parameters
  Master data
  Process execution (testing)
  Exercises
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