What is SAP?
- Money
- Man power
- Materials
- Machine
Why SAP?
R/2
R/3
SAP ECC
SAP
80 Questions 60%-
Organizational units:
Client: Highest level in hierarchy. Each client is an independent unit that contains separate records, a
set of tables and data.
Company code: It represents an independent legal accounting entity. Company code is the minimum
structure required in SAP FI
Business Area: A business area represents separate areas of operation within organization an can be
used across all company codes.
Profit Center: A profit center evaluates the success of independent area that are responsible for
costs and revenue.
20000 2000
20000 2001
20000 2002
20000 2003
Functional Area: In cost of sales accounting, overhead costs are reported according to the functional
areas in which they are incurred.
Country:
Currency: INR
End User
Consultant-
Landscape:
Controlling Area: It identifies a self-contained structure for which costs and revenue can be managed
and allocated.
Cross company code controlling: Assigning more than one company code to same controlling area
Pre-requisites:
All the assigning company codes must use same operational chart of accounts
All the assigning company codes must use same Fiscal year variants
GAAP posting
Depreciation US GL account
Scenarios:
- Business area
- Profit center
- Segment
- Preparation for consolidation
- Cost of sale accounting
- Cost center
Variant Principle:
1. Define Variant
2. Determine values for the variant
3. Assign the variant to object
Ex: Fiscal year variant, Posting period variant, Field status variant and etc..,
Calendar year:
Non-Calendar Year:
Year Specific or Year Dependent: The number and start end dates for the periods may vary year to
year.
Year independent: The number and start and end dates for the periods are the same for every year
Fiscal year variant used to define name and number of posting periods
Apr 2017 - 0
May 2017 -0
June 2017 - 0
Dec 2017 0
Jan 2018 - -1
Feb 2018 1
March 2018 1
Oct -2016 - +1
Nov 2016 - +1
Dec 2016 - +1
Jan -2017 0
Dec -2017 0
US dollar - USD
Exchange rates:
Tools:
- Base currency
- Exchange rate spread
- Inversion
Base currency:
Quotations:
Direct quotation: One unit of foreign currency converted into local currency
Indirect quotation: One unit of local currency converted into foreign currency
1 USD = 67 INR
1 EUR 83 INR
Inversion:
1 USD = 67 INR
INR = 0.0149
Master data: Long term & permanent data. Ex: General ledger accounts, Customer accounts, Vendor
accounts
Transaction data: day to day entries posted using master data. Ex: Invoice, Journal, Sale etc..,
- Language
- Length of GL account number (1- 10 digits)
- Controlling integration (Manually/Automatically creation of cost elements)
- Group chart of accounts consolidation
Legal requirement Cash & Bank GL account : 4 digits 1000 -1999 Cash - 1010
- Account number
- Account group
- Account type(P&L or Balance sheet)
- Description
- Consolidation fields(Group account number/trading partner)
Account type:
P&L accounts: Balances are carry forwarded to P&L carry forward account/Retained earnings account
Balance sheet accounts: Balances are carry forwarded to same balance sheet accounts
- Control data
- Create/Bank/interest
- Information
Account currency:
Foreign currency: While posting document system will only specified foreign currency transactions
S GL accounts
K Vendor
D Customer
A Assets
M - Material
Reconciliation A/Cs: Its main link between GL accounts and sub ledger accounts
- Reconciliation accounts
- Revenue accounts
- Material accounts
- Tax accounts
Number range:
- Internal: Automatically system assign the number from assigned number ranges
- External: User need to enter account number manually. It can be alphanumeric
- Account Group
- Company code
- Transaction or activity
Highest to lowest
Suppress Or Hide
Display
Required
Optional
S-O -> S
O-R->R
D-O ->D
R-O-> R
Dual Control principle: If you made any changes to sensitive fields in the customer/vendor master
records then SAP system blocks the vendor/customer master records and send for authorized person
confirmation. Authorized person can confirm or rejects the changes.
Enter vendor account number in customer master record and Customer account number in
vendor master record
Select clearing with customer in vendor master and clearing with vendor in customer mater
Alternative payer/Payee: We can enter the alternative/payer at general data and company code data
level. Company code date will takes highest priority than general data.
All postings for which the account number of the branch is specified, are automatically
posted to the head office account. The account number of the branch affected is noted in the
line items.
No line items or balances are managed in the branch account.
Document Control:
Document number
Company code
Fiscal Year
Document principle: A document saved for every transaction posting and it will remains in the
system until its archived.
The document type controls document header and helps to differentiate the business transaction
that need to be posted. A document can have only one document header.
Document types are defined at Client level
Internal number:
Line item are controlled by posting keys. In a document we can have 2 999 line items.
Debit/Credit
Account type
Fields status of the document
Reversal posting key
GL debit 40
GL Credit - 50
Highest to lowest
Display
Required
Optional (Lowest)
S O -> S
O-R -> R
O- S -> S
Posting period Variant: Opening & closing of posting periods are controlled by posting period variant
S GL accounts
D- Customers
K Vendors
A Assets
When entering document, you enter the posting date. The SAP automatically determines the posting
period and fiscal year based on the posting date.
Posting authorizations:
- Post
- Park
- Hold
Document Splitting:
ECC6.0 Features:
New GL
Document splitting
Segmentation(Ecc5.0)
CO-FI real time integration
Document splitting: SAP provides document splitting functionality to ensure zero balance for the
additional account assignments (like Profit center)
Data entry view: How the document appears to the document creator
General ledger view: How the document appears in the general ledger
Profit center
Business area
Segment
- Inheritance
- Standard account assignment
Example:
Active splitting:
Passive splitting:
Entry view:
Default Values:
Line Item: Assignment field, text field, base line date and payment terms
The amount, account, posting keys or any other fields that affects the reconciliation of
cannot be changed
Pre-requisites:
- Normal reversal
- Negative reversal
- Negative postings
- Alternative posting date
Terms of payments are condition agreed upon by business partners for the payment of invoices.
Taxes:
SAP Allowed taxes on invoice are:
- Tax on sales/purchase
- US sales tax
- Additional taxes
- Withholding taxes
Taxation levels:
- Federal/Country level
- State/Jurisdictional level
SAP Supports:
From
Level Condition Tax type level Account key
10 BASB Base amount
20 MWAS Output tax 10 MWS
30 MWVS Input tax 10 VST
Account key:
- Rules
- Posting keys
- Tax accounts
Tax codes:
- One company code makes purchases for other company codes (Central procurement)
- One company code pays the invoices for other company code (Central payment)
- One company code sell goods to other company codes
Cross company code document number is combination of first company code document number,
first company code and fiscal year
Taxes are not distributed between company codes based on their expenses. First company code is
responsible to pay the taxes.
Clearing accounts:
To reduce the clearing accounts one company code treated as clearing company code:
1000 2000
3000 - 2000
General ledger
Customer accounts
Vendor accounts
Clearing:
- Clearing an account
- Post with clearing
Clearing date
Clearing document number
Post with clearing can be carried manually or automatically (Automatic payment program)
Cleared item not possible to reverse. We need to reset the clearing and then reverse the
entry.
Payment differences:
Partial Payment: Both items are remains in open items
Residual Payment: Payment clear the invoice and for residual amount new document with reference
to original document
SAP HANA is to create a common database approach for online transaction processing(OLTP) and
Online Analytical processing(OLAP) using an in-memory column database.
Simple finance:
To use the simple finance HANA database is required