What is the difference between company and company code?
A company is the organizational unit used in the legal consolidation module to roll up financial statements of several company codes.The Company Code is the smallest organizational ! unit for which a complete self-contained set of accounts can be drawn up for purposes of external reporting.
How many chart of accounts can be attached to a company code?
One or more Operative Chart of Accounts can be assigned to a company code.
A COA must be aasigned to a company code. This COA is the operative COA and is used in both FI and CO. One Chart of Account can be assigned to many Company codes i.e., Multiple company codes can either share the same or have separate COA. But a company code (Country specific Company code or International Company code) can have a country specific COA also along with Operative COA. The link between the regular COA and the country COA appears in the alternate number field of the G/L master record.
Eg: If a company's subdidiaries are located in both US & Mexico. We need to configure 2 Company codes - one for US and another for Mexico,for eg U100 and M100. The same way we create 2 COA's one for US & one for Mexico, USCA and MXCA. Mexico has different govt reporting requirements than the US so we will need to define a company code specific to Country Mexico and also create a country specific COA to be used, in addition to normal COA. In tcode OBY6(Comp Code Global Parameters) of CC M100 we define normal COA i.e.,USCA in Chart of Accounts field and MXCA in Country Chart/Accts field.
What are substitutions and validations? What is the precedent?
Validations are used to check settings and return a message if the prerequisite check condition is met.Substitutions are similar to validations; they actually replace and fill in field values behind the scenes without the user’s knowledge unlike validations that create on-screen msgs to the user.
What is a controlling area?
The Controlling Area is the central organizational unit within CO module. It is representative of a contained Cost Accounting envt where costs and revenues can be managed.
Define relationship between controlling area and company code?A controlling area may include one or more company codes which must use the same operative chart of accounts as the controlling area. A Controlling Area can contain multiple company code assignments but a single company code can be assigned to only one controlling area.
Showing posts with label download. Show all posts
Showing posts with label download. Show all posts
Monday, August 9, 2010
Sunday, August 8, 2010
SAP FI Module - INTRODUCTION
Introduction
The SAP FI Module has the capability of meeting all the accounting and financial needs of an organization. It is within this module that Financial Managers as well as other Managers within your business can review the financial position of the company in real time as compared to legacy systems which often times require overnight updates before financial statements can be generated and run for management review.
The real-time functionality of the SAP modules allows for better decision making and strategic planning. The FI (Financial Accounting) Module integrates with other SAP Modules such as MM (Materials Management), PP (Production Planning), SD(Sales and Distribution), PM (Plant Maintenance),and PS (Project Systems).
The FI Module also integrates with HR(Human Resources) which includes PM(Personnel Management), Time Management, Travel Management, Payroll.Document transactions occurring within the specific modules generate account postings via account determination tables.
The FI (Financial Accounting) Module components.
The FI Module comprises several sub-modules as follows:
1. Accounts Receivables
2. Accounts Payable
3. Asset Accounting
4. Bank Accounting
5. Consolidation
6. Funds Management
7. General Ledger
8. Special Purpose Ledger
9. Travel Management
Accounts Receivables records all account postings generated as a result of Customer sales activity. These postings are automatically updated in the General Ledger . It is within the Accounts Receivables Module that you can monitor aging of the receivables and generate customer analysis. The Accounts Receivable Module also integrates with the General ledger, Sales and Distribution, and Cash Management Modules.
Accounts Payable records account postings generated as a result of Vendor purchasing activity. Automatic postings are generated in the General Ledger as well. Payment programs within SAP enables the payment of payable documents by check, EDI, or transfers.
Asset Accounting is utilized for managing your company’s Fixed Assets. SAP allows you to categorize assets and to set values for depreciation calculations in each asset class.
Bank Accounting allows for management of bank transactions in the system including cash management.
Consolidation enables the combining of financial statements for multiple entities within an organization. These statements provide an overview of the financial position of the company as a whole.
Funds Management allows management to set budgets for revenues and expenses within your company as well as track these to the area of responsibility.
General Ledger is fully integrated with the other SAP Modules. It is within the General Ledger that all accounting postings are recorded. These postings are displayed in real-time providing up-to-date visibility of the financial accounts.
Special Purpose Ledger is used to define ledgers for reporting purposes. Data can be gathered from internal and external applications.
Travel Management provides management of all travel activities including booking trips and handling of expenses associated with travel.
Selva's Note: I keep posting other elements of SAP FICO in my coming posts.
The SAP FI Module has the capability of meeting all the accounting and financial needs of an organization. It is within this module that Financial Managers as well as other Managers within your business can review the financial position of the company in real time as compared to legacy systems which often times require overnight updates before financial statements can be generated and run for management review.
The real-time functionality of the SAP modules allows for better decision making and strategic planning. The FI (Financial Accounting) Module integrates with other SAP Modules such as MM (Materials Management), PP (Production Planning), SD(Sales and Distribution), PM (Plant Maintenance),and PS (Project Systems).
The FI Module also integrates with HR(Human Resources) which includes PM(Personnel Management), Time Management, Travel Management, Payroll.Document transactions occurring within the specific modules generate account postings via account determination tables.
The FI (Financial Accounting) Module components.
The FI Module comprises several sub-modules as follows:
1. Accounts Receivables
2. Accounts Payable
3. Asset Accounting
4. Bank Accounting
5. Consolidation
6. Funds Management
7. General Ledger
8. Special Purpose Ledger
9. Travel Management
Accounts Receivables records all account postings generated as a result of Customer sales activity. These postings are automatically updated in the General Ledger . It is within the Accounts Receivables Module that you can monitor aging of the receivables and generate customer analysis. The Accounts Receivable Module also integrates with the General ledger, Sales and Distribution, and Cash Management Modules.
Accounts Payable records account postings generated as a result of Vendor purchasing activity. Automatic postings are generated in the General Ledger as well. Payment programs within SAP enables the payment of payable documents by check, EDI, or transfers.
Asset Accounting is utilized for managing your company’s Fixed Assets. SAP allows you to categorize assets and to set values for depreciation calculations in each asset class.
Bank Accounting allows for management of bank transactions in the system including cash management.
Consolidation enables the combining of financial statements for multiple entities within an organization. These statements provide an overview of the financial position of the company as a whole.
Funds Management allows management to set budgets for revenues and expenses within your company as well as track these to the area of responsibility.
General Ledger is fully integrated with the other SAP Modules. It is within the General Ledger that all accounting postings are recorded. These postings are displayed in real-time providing up-to-date visibility of the financial accounts.
Special Purpose Ledger is used to define ledgers for reporting purposes. Data can be gathered from internal and external applications.
Travel Management provides management of all travel activities including booking trips and handling of expenses associated with travel.
Selva's Note: I keep posting other elements of SAP FICO in my coming posts.
Sunday, August 1, 2010
SAP FREE STUDY MATERIAL
SAP FREE E-BOOK FOR YOU
Currently we have more articles about SAP ERP software, such as: SAP modules integration, SAP MM (Inventory Management, Procurement / Purchasing, Material Requirement Planning / MRP), SAP SD (Enterprise Structure, Master Data), SAP FI (General Ledger, Financial Reports, Accounting concept), SAP Navigation, and various SAP tips. The articles explain about the SAP basic concept, business process and configuration guide.
SAP Enterprise Structure
SAP enterprise structure is organizational structure that represents an enterprise in SAP R/3 system. It consists of some organizational units which, for legal reasons or for other specific business-related reasons or purposes, are grouped together. Organizational units include legal company entities, sales offices, profit centers, etc. Organizational units handle specific business functions.
Organizational units may be assigned to a single module (such as a sales organization assigned to Sales and Distribution (SD) module, or to several modules (such as a plant assigned to Materials Management (MM) and Production Planning (PP) module).
SAP ERP system can represent a complex enterprise structure. Its flexibility can integrate the structure of an enterprise by linking its organizational unit. Enterprise structure design is a fundamental process in a SAP implementation project. The design is mainly determined by the business scenarios performed in an enterprise. Once the design is determined, it will affect many things such as how to perform a transaction and generate reports on SAP system. Although it’s possible, it requires great effort to change the enterprise structure. So , we must ensure that the enterprise structure designed in the SAP implementation project can accommodate all business scenarios and enterprise’s requirements for current and future situation.
The SAP Enterprise Structure is a fundamental setting and needs a comprehensive understanding of the business processes and their integration. We have to work with other departments and SAP modules, such as Accounting department (FI module), and Sales department (Sales and Distribution module).
The E-Book contains 50 pages which explains in details about the SAP Enterprise Structure (MM and related modules such as FI, Logistics, and SD) Concept and Configuration Guide. Just like other articles on my SAP Study Materials blog, I wrote the e-book in a simple-to-understand way, so you can learn it easily. You don't need to have extensive SAP knowledge and experience to be able to configure the SAP Enterprise Structure, as the e-book start explaining each step with the basic concept behind it. After understanding the concept, the e-book will show the step-by-step configuration with the screen shots.
The table of contents of the e-book:
Chapter 1: Case Study Business Scenario...page 4
Chapter 2: SAP Enterprise Structure...page 5
Enterprise Structure in Financial Accounting...page 5
Enterprise Structure concept in Financial Accounting...page 5
Define Company...page 7
Define Company Code...page 9
Assign Company Code to Company...page 12
Define Business Area...page 13
Enterprise Structure in Logistics – General...page 14
Enterprise Structure concept in Logistics...page 14
Define Plant...page 15
Define Valuation Level...page 18
Define Division...page 19
Assign Plant to Company Code...page 21
Assign Business Area to Plant/Valuation Area and Division...page 22
Enterprise Structure in Sales and Distribution (SD)...page 26
Enterprise Structure concept in Sales and Distribution...page 26
Define Sales Organizations...page 27
Define Distribution Channel...page 30
Assign Sales Organization to Company Code...page 32
Assign Distribution Channel to Sales Organization...page 32
Assign Division to Sales Organization...page 33
Setup Sales Area...page 34
Assign Sales Organization – Distribution Channel - Plant...page 35
Business Area Account Assignment...page 36
Enterprise Structure in Material Management (MM)...page 38
Enterprise Structure concept in Material Management...page 38
Maintain Storage Location...page 41
Maintain Purchasing Organization...page 45
Assign Purchasing Organization to Company Code...page 46
Assign Purchasing Organization to Plant...page 47
Assign Standard Purchasing Organization to Plant...page 48
Assign Purchasing Organization to Reference Purchasing Organization...page 49
If you want your free E-Book, contact me at: sapjobselva@gmail.com
Currently we have more articles about SAP ERP software, such as: SAP modules integration, SAP MM (Inventory Management, Procurement / Purchasing, Material Requirement Planning / MRP), SAP SD (Enterprise Structure, Master Data), SAP FI (General Ledger, Financial Reports, Accounting concept), SAP Navigation, and various SAP tips. The articles explain about the SAP basic concept, business process and configuration guide.
SAP Enterprise Structure
SAP enterprise structure is organizational structure that represents an enterprise in SAP R/3 system. It consists of some organizational units which, for legal reasons or for other specific business-related reasons or purposes, are grouped together. Organizational units include legal company entities, sales offices, profit centers, etc. Organizational units handle specific business functions.
Organizational units may be assigned to a single module (such as a sales organization assigned to Sales and Distribution (SD) module, or to several modules (such as a plant assigned to Materials Management (MM) and Production Planning (PP) module).
SAP ERP system can represent a complex enterprise structure. Its flexibility can integrate the structure of an enterprise by linking its organizational unit. Enterprise structure design is a fundamental process in a SAP implementation project. The design is mainly determined by the business scenarios performed in an enterprise. Once the design is determined, it will affect many things such as how to perform a transaction and generate reports on SAP system. Although it’s possible, it requires great effort to change the enterprise structure. So , we must ensure that the enterprise structure designed in the SAP implementation project can accommodate all business scenarios and enterprise’s requirements for current and future situation.
The SAP Enterprise Structure is a fundamental setting and needs a comprehensive understanding of the business processes and their integration. We have to work with other departments and SAP modules, such as Accounting department (FI module), and Sales department (Sales and Distribution module).
The E-Book contains 50 pages which explains in details about the SAP Enterprise Structure (MM and related modules such as FI, Logistics, and SD) Concept and Configuration Guide. Just like other articles on my SAP Study Materials blog, I wrote the e-book in a simple-to-understand way, so you can learn it easily. You don't need to have extensive SAP knowledge and experience to be able to configure the SAP Enterprise Structure, as the e-book start explaining each step with the basic concept behind it. After understanding the concept, the e-book will show the step-by-step configuration with the screen shots.
The table of contents of the e-book:
Chapter 1: Case Study Business Scenario...page 4
Chapter 2: SAP Enterprise Structure...page 5
Enterprise Structure in Financial Accounting...page 5
Enterprise Structure concept in Financial Accounting...page 5
Define Company...page 7
Define Company Code...page 9
Assign Company Code to Company...page 12
Define Business Area...page 13
Enterprise Structure in Logistics – General...page 14
Enterprise Structure concept in Logistics...page 14
Define Plant...page 15
Define Valuation Level...page 18
Define Division...page 19
Assign Plant to Company Code...page 21
Assign Business Area to Plant/Valuation Area and Division...page 22
Enterprise Structure in Sales and Distribution (SD)...page 26
Enterprise Structure concept in Sales and Distribution...page 26
Define Sales Organizations...page 27
Define Distribution Channel...page 30
Assign Sales Organization to Company Code...page 32
Assign Distribution Channel to Sales Organization...page 32
Assign Division to Sales Organization...page 33
Setup Sales Area...page 34
Assign Sales Organization – Distribution Channel - Plant...page 35
Business Area Account Assignment...page 36
Enterprise Structure in Material Management (MM)...page 38
Enterprise Structure concept in Material Management...page 38
Maintain Storage Location...page 41
Maintain Purchasing Organization...page 45
Assign Purchasing Organization to Company Code...page 46
Assign Purchasing Organization to Plant...page 47
Assign Standard Purchasing Organization to Plant...page 48
Assign Purchasing Organization to Reference Purchasing Organization...page 49
If you want your free E-Book, contact me at: sapjobselva@gmail.com
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