Introduction to SAP FICO, REM & SEM

Bharat Sanchar Nigam Limited

4th August 2009

Structure of FICO Modules

Client

Company Code
The company code is the smallest organisational unit for which you can have complete independent accounting. It is a legal entity for which the financial statements such as Balance Sheet, Profit & Loss Account are created. It may represent a company within a corporate group.

Controlling Area
Organizational unit used for management accounting purposes. A controlling area may contain one or more company codes, which can operate in different currencies, if required. The company codes within a

controlling area must all use the

same operational chart of accounts.

Operating Concern
The Operating Concern is the highest
reporting level within Controlling; defines the organisation from Sales market perspective.

One or more controlling areas can be

assigned to an operating concern.

Corporations have only a single operating concern, which is recommended for the sake of simplicity and convenience if all controlling areas and company codes share the same fiscal calendar.

Plant
A plant is an organisational logistics unit that structures the enterprise from the perspective of production, procurement, plant maintenance and materials planning. A plant can be a manufacturing facility or a branch within a company and responsible for producing some activity (capacity planning).

Storage Location

An organisational unit that allows the differentiation of material stocks within a plant. Inventory management and physical inventory are carried out on a quantity basis at storage location level, within a plant.

Org Levels in Inventory Mgmt

Client

Company Code 0001

Company Code 0002

Plant 1000

Plant 2000

Plant 3000

Storage Loc 0001

Storage Loc 0002

Storage Loc 0003

Purchasing Organisation / Group

A purchasing organisation is an organisational level that negotiates conditions of purchase with vendors for one or more plants or companies. It is legally responsible for completing the purchasing contracts. A purchasing group is the key for a buyer or group of buyers responsible for certain purchasing activities. It is linked only to a material in a plant and not assigned to any other organisational element.

Plant Specific Purchasing Organization

Purchasing Organisation 1

Purchasing Organisation 2

Company Code

Plant 1

Plant 2

Cross Company Code Pur. Org.

Purchasing Organisation 1

Plant 1

Plant 2

Plant 3

Company Code 1

Company Code 2

Company Code 3

Sales & Distribution Sales Organisation

Organizational Units: Sales Organization

Sales organization

Responsible for: distributing goods and services negotiating sales conditions product liability and rights of recourse

Sales & Distribution Distribution Channel

Organizational Units: Distribution Channel

Sales organization

Distribution Channel 1

Distribution Channel 2

is a means through which sales materials reach the customer represents your strategies to distribute goods and / or services to your customer for example: wholesale trade, retail trade, internet trade, ...
SAP AG 1999

Sales & Distribution - Division

Organizational Levels in SD Sales Area Sales Area

Sales organization Distribution channel

Division
2 Motorcycles

1 Frankfurt

2 Berlin

2 Retail trade

5 Internet

1 Wholesale trade

3 Computers

3 Computers

2 Motorcycles

1 Pumps

Sales areas

1 2 2

1 2 3

1 5 3

2 1 2

2 1 1

SAP AG 1999

SD Integration with Finance

Company Code 1

Company Code 2

Sales Org 1

Sales Org 2

Sales Org 1

Sales Org 2

Sales Orgs are assigned to company codes. Multiple Sales Orgs can be assigned to a company code. One Sales Org can belong to only one company code.

SD Integration with Materials Management

Sales Org 1

Sales Org 2

D Chnl 1

D Chnl 2

D Chnl 1

D Chnl 2

Plant 1

Plant 2

Plant 1

Plant 2

Plants are assigned to sales organizations. One plant can be assigned to multiples sales organizations or multiple plants can be assigned to one Sales org.

Organisational Units
Views
Internal Accounting External logistics External Accounting Internal logistics (MRP/Production) Inventory management

Levels
Operating Concern Controlling areas

Sales organizations
Company codes Valuation areas

Purchasing organizations

Plants Storage locations/special stocks

Reporting Requirements

Typical Question in Profit Centre Accounting

Contribution of

Typical Questions an organizational

unit

What is the operating profit

Accounting

for a profit

centre?

Return on Capital

What asset value is attributed to a profit centre?

Cost Management

Which responsibility areas exceeded their plan last month ?

Management of Internal Sales & Services

What goods and services are exchanged within the corporation ?

Typical Questions in Profitability Analysis

Organisation View

Profitability Analysis Data Structure

REGION

Characteristics Region Product State

Values

Rural/ Urban FLPP, Mobile Karnataka

PRODUCT

Value Fields

Profitability segment

Revenues Expenses

800 650

Revenue Expenses

Organisational Units & Master Data

Organizational Units & Master Data
Operating Concern
Profit Segment Profit Segment Profit Segment

Controlling Area
Profit Centers Profit Centers Company Codes Company Codes Profit Centers Company Codes

Sales Organization Cost Center Cost Center Cost Center Cost Object Project Plant
Distribution Channel

Order
SAP AG 1999

Division

General Ledger - Chart of Account

GL Chart of Account Account Group

General Ledger - Chart of Account

General Ledger - Posting Period Variant

GL Standard Posting Document Display

Cost Centre Hierarchy

Profit Centre Derivation

Financial Accounting Other Dimensions

Books can be balanced with in or across a Company code by

Profit Centre
Business Area Segment Any other Custom defined Field

Document Splitting Functionality is used to split the balance sheet items

Financial Accounting Document Splitting

Financial Accounting Document Splitting

Direct Posting to PA Segment

Account assignment easily accessible Entry aids central user-defined

GL Account Balance - Display

Cross Company Code Transactions

Open item clearing

Chart of Account Sub Ledgers Reconciliation Accounts

Customer & Vendor Accounts Groups

Accounts Payable Vendor Master

Vendor Master Different Views

Normal Procurement Cycle

Vendor Invoice Three Stage Verification

Vendor Invoice Payments Program

AR - Customer Master Record

Asset Accounting Asset Class

Asset Accounting Chart of Depreciation

Organisational Units & Master Data

Organizational Units & Master Data
Operating Concern
Profit Segment Profit Segment Profit Segment

Controlling Area
Profit Centers Profit Centers Company Codes Company Codes Profit Centers Company Codes

Sales Organization Cost Center Cost Center Cost Center Cost Object Project Plant
Distribution Channel

Order
SAP AG 1999

Division

Understanding BSNL - Company Codes

Co. Code
1001
1002 1003 1004 1005 1006 1007 1008 1009

Description
BSNL Corporate Office
BSNL Karnataka Circle BSNL Maharashtra Circle BSNL Southern Maintenance Zone BSNL Mumbai Telecom Factory BSNL Mumbai Project Circle BSNL ALTTC, Ghaziabad

Currency
INR
INR INR INR INR INR INR

Understanding BSNL - Karnataka Circle

BSNL Karnataka (1002)
Bangalore SSA Belgaum SSA Mysore SSA Other SSA...

Marketing Operations

Marketing Operations Billing

Marketing Operations Billing

Marketing Operations

Billing
R&D F&A

Billing
R&D F&A

R&D
F&A

R&D
F&A

GL Accounts 1760301 Water Charges 1760302 Electricity Charges 1760303 Fuel Charges

Co. Code Cost Centre

Profit Centre

Understanding BSNL - Revenue Posting

GL Account for Revenue Posting 1310101 Fixed Charge 1310102 Share from Deposit

Financial Accounting

Break up by LOB

1310201Local Calls
1310204 ISD Calls

Posting can be done at Co. Code (for Circle) and at Profit Centre (for SSA)

Can be done using Characteristics in CO-PA (Profitability Analysis)

Co. Code - 1002 Profit Centre Bangalore

Area = Rural/Urban Service = Telephone/ Telex/Telegraphs/WILL Fixed/ WILL- Mobile/VAS/ Broadband Services

Real Estate Management

Transactions
Org Design
Master data

Analysis
Accounting Reporting

Plan

Actuals

Identify Identify Org. Units Org. Units Org. Unit Hierarchy Org. Unit

Business

Occupancy From FI

Accrual /

Entity
Building Land Rental Objects

Planning

Costs Revenues

From CO From Other

Deferrals
Occupancy

Modules

Cash flow
Others

Hierarchy

Business

Partner

End to End SAP Process Road Map

Real Estate Management Master Data

Real Estate Master Data

Rental Objects

Real Estate Contract Management

Real Estate Cost Sharing

Real Estate Integration with Other Modules

Real Estate Integration with PM

Strategic Enterprise Management

SEM Data structure

SEM Business Planning

SEM Business Consolidation

Master data

Data collection
FI interface CO interface Layouts PC Data collection Flex. File Upload Web Access

Manual postings

Currency translation

Automated consolidation
Inter-unit elimination
Profit elimination in inventory

Validation

Monitor OK ERR Active Excel

Versions Simulation Restatement Special Reports

Cons. of investments Reclassification

BW Reporting

Profit and loss Statement

1 2 3

A Sales

B 50

SEM Consolidation Monitor

Cons Groups FS Items Data Monitor Cons Monitor Info system Parameters

US CoA
Status

Report tree World America B/S ... I/S Canada Europe Periods Asia Region F.Area CY / PY

World
America USA Canada Europe Asia

B/S CA

FA
Equity Liab. I/S CF

USA

...

...

...

...

SEM Business Consolidation

1. Balance carryforward 2. Data collection 3. Validation of reported data 4. Standardization of reported data 5. Reconciliation (with manual entries) 6. Currency translation and rounding 7. Allocation 8. Inter unit Elimination 9. Elimination of IU profit/loss in inventory 10. Consolidation of investments 8. Interunit elimination

11. Reclassification
12. Validation of consolidated data

Questions and Answers?

Thank You