FI Overview GL AM AR FI CON AP Special Ledger Financial Accounting G/L Reporting Legal or external reporting • Balance sheet • Income Statement • Statement of Financial Position Financial Accounting External Accounting Stockholders Financial Position Profit & Loss Balance Sheet Bankers, Lenders External Auditors IRS, Taxing Authority SEC CO/EC Overview COMPONENT VIEW ROLE Cost Center Acctg - CO-CCA Costs Cost Tracking Internal Orders CO-OPA Costs Small Projects Projects - PS Costs Large Projects Product Costing - CO-PC Costs Product Costing Activity Based Costing Costs Cost Management Profitability Analysis-CO-PA Profits Margin by multi-cuts Profit Center Acctg-EC-PCA Profits Profit & Loss Repsons. Executive Info. System-EC-EIS Any data Cross-module reports Controlling CO Reporting Internal management reporting Reports by cost centers or other cost “objects” and cost elements Cost centers Orders and Projects Budget/plan Actual vs. plan Controlling Internal Accounting Executives Department Managers Departmental Expense Report Salaries 10,000 Overhead 8,000 Other 5,000 Total 23,000 Controllers Senior Management FI and CO comparison FI CO Legal or external reporting Reports by accounts Balance Sheet Income Statement Internal management reporting Reports by cost centers and cost elements Cost Center Reports FI/CO Organizational Structures • Client • Company • • • • • Chart of Accounts Company Code Business Area Credit Control Area Controlling Area CLIENT Client • Highest hierarchical level in an SAP system • A complete database containing all the tables necessary for creating a fully integrated system • Master records are created at the client level CLIENT COMPANY Company • Consolidated financial statements are created at the company level • A company can include one or more company codes – All company codes must use the same chart of accounts and fiscal year CLIENT COMPANY CHART OF ACCOUNTS Chart of Accounts • A listing of the accounts • A chart of accounts must be assigned to every company code • Several company codes can use the same chart of accounts – A different chart of accounts can be used if a different grouping of the chart of accounts is required CLIENT US CHART OF ACCOUNTS Co code 1000 Co code 2000 Co code 3000 GERMAN CHART OF ACCOUNTS Co code 4000 Co code 5000 CLIENT COMPANY COMPANY CHART OF ACCOUNTS CHART OF ACCOUNTS COMPANY CODE COMPANY CODE COMPANY CODE Company Code A BALANCED SET OF BOOKS • A required structure • A legally independent entity • The smallest organizational unit for which accounting can be carried out • • • The level where business transactions are processed The level where accounts are managed The level where legal individual financial statements, such as the balance sheet and the profit and loss statement, are created CLIENT COMPANY COMPANY CHART OF ACCOUNTS CHART OF ACCOUNTS CREDIT CONTROL AREA COMPANY CODE COMPANY CODE CREDIT CONTROL AREA COMPANY CODE Credit Control Area • An organizational unit or area of responsibility created to control customer credit limits • A company code is assigned to one and only one credit control area • Multiple company codes can be assigned to one credit control area CLIENT COMPANY COMPANY CHART OF ACCOUNTS CHART OF ACCOUNTS CONTROLLING AREA CONTROLLING AREA COMPANY CODE COMPANY CODE COMPANY CODE Controlling Area • An organizational unit defining the company's cost/ managerial accounting operations • A company code is assigned to one and only one controlling area • A controlling area can have multiple company codes assigned to it – This allows cross company cost allocations and reporting Fiscal Year Variant •Determines the fiscal year DECEMBER •Calendar year or non-calendar year •Allows the use of special FEBRUARY periods to aid year-end closing JANUARY •Is assigned to a company 1 2 3 4 5 6 7 code