FINANCE IN SAP HANA

BRIEF HIGH LEVEL OVERVIEW

 COMPANY CODE GLOBAL PARAMETERS

• The Company Code is the organizational unit within a Client that represents
an independent legal entity for external reporting purposes.
• Chapter Objectives
• Define fields involved in establishing global parameters for a Company Code.
• Create a Company Code.
• Explain the relationship between Fiscal Year Variants and Posting Periods.
• Define a Field Status Variant.
• Define the various Account Types used in the FI module.

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COMPANY CODE DEFINITION

General Data

Company Code: USXX Company Name: Price Waterhouse

City: Philadelphia Country Key: US
Currency: USD Language: E

Global Data

Accounting Organization Processing Parameters

Chart of Accounts CAXX Field Status Variant 0001
Credit Control Area CCXX Posting Period Variant XXXX
Fiscal Year Variant K4

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FISCAL YEAR VARIANT

Fiscal Year Variant Description

K2 Calendar year, 2 special periods
K4 Calendar year, 4 special periods
V3 Fiscal year, 4 special periods

Properties of Fiscal Year Variant “K4”

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 POSTING PERIOD VARIANT

Var. A From Acct. To Acct. From Per. 1 Year To Per. Year

0001 ALL 1 2000 12 2000

0001 Cus 0 99999 1 2000 12 2000
0001 Ven AAAAAAAAAA ZZZZZZZZZZ 2 2000 12 2000

Account Type (A)

+ = Valid for all Account Types (masking)

A = Assets
D = Customers (A/R)
K = Vendors (A/P)
M = Materials
S = General Ledger Accounts |
 CHART OF ACCOUNTS

• Chart of Accounts is a list of all G/L accounts used by one or several company codes. For
each G/L account, the chart of accounts contains the account number, account name, and
information that control how an account functions and how a G/L account is created in a
company code.

GL accounts will be grouped as

- Liabilities
- Assets
- Incomes
- Expenditure
- Cross Company Code
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 GL- FEATURES

• The central task of G/L accounting is to provide a comprehensive picture for external
accounting and accounts. Recording all business transactions (primary postings as well as
settlements from internal accounting) in a software system that is fully integrated with all the
other operational areas of a company ensures that the accounting data is always
complete and accurate.

• The SAP FI General Ledger has the following features:

- Automatic and simultaneous posting of all sub-ledger items in the appropriate
general ledger accounts (reconciliation accounts)
- Simultaneous updating of general ledger and cost accounting areas
- Real-time evaluation of and reporting on current accounting data, in the form of
account displays, financial statements with different financial statement versions and
additional analyses.
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GL- FEATURES

• Essentially, the general ledger serves as a complete record of

all business transactions. It is the centralized, up-to-date
reference for the rendering of accounts. Actual individual
transactions can be checked at any time in real-time processing
by displaying the original documents, line items, and transaction
figures at various levels such as:
Account information
Journals
Totals/transaction figures
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Balance sheet/profit and loss evaluations
 ACCOUNT GROUP
The account group is a summary of characteristics that control the
creation of master records.

Sl.No. Account Group Number Interval from Number Interval to

1 Liabilities

2 Assets

3 Incomes

4 Expenditures

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 G/L ACCOUNT MASTER DATA

• The following objects play a central role in the creation and

management of master records:
Chart of accounts
Account group

• The chart of accounts can be valid for one or more company codes. It
contains information which applies to the master records in the
company codes which use the chart of accounts.
• The GL account Master Data is distributed over two areas; the Chart
of Accounts area and the Company Code Area
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GL MASTER DATA –IMPORTANT FIELDS.

Important fields in the GL master data are:

Name
Description
Currency
Balances in Local Currency Only
Tax Category
Posting Without Tax Allowed
Reconciliation Account
Open Item Management
Line Item Display
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THE DOCUMENT PRINCIPLE

One financial transaction generates one FI document

with a unique Document Number.

Invoice - SD Document - FI
Number: 999 Number: 9999999999

To: ABC Sandwiches Line items:

From: Fruits & Vegetables Ltd.
DR. ABC Sandwiches $60
1 box of tomatoes $60 CR. Sales Revenue $60

Total $60

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DOCUMENT TYPES

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 DOCUMENT NUMBER RANGES

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 POSTING KEY

Posting Key Description Debit/Credit Account Type

01 Invoice Debit Customer
40 Debit Entry Debit G/L Account
50 Credit Entry Credit G/L Account
15 Incoming Payment Credit Customer
. . . .
. . . .

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FINANCIAL STATEMENT VERSIONS

• The General Balance Sheet & the Profit & Loss Account will be
components of the Financial Statement Versions.

• All the requisite GLs will be assigned to this Financial Statement

Versions.

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PERIODIC CLOSING/ANNUAL CLOSING

• Periodic/Annual closing steps include

- Posting Depreciation Run.

- Carry forward Asset Balances.

- Carry forward balances of AR/AP.

- Copying Number ranges to the next Financial year.

- Closing open posting periods including special periods.

- Foreign Currency Valuation

- Customer/Vendor Revaluation

- GR/IR Clearing

- Bank Reconciliation
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FINANCIAL ACCOUNTING – GL MASTER
 CHART OF ACCOUNTS

Client

Chart of Accounts Chart of Accounts

CAUS CAEU

Company Company Company

Code Code Code
US01 US02 EU01

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 BLOCKING A MASTER RECORD

This
master record
is blocked ONLY in this
Company Code

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THE DOCUMENT PRINCIPLE

One financial transaction generates one FI document

with a unique Document Number.

Invoice - SD Document - FI
Number: 999 Number: 9999999999

To: ABC Sandwiches Line items:

From: Fruits & Vegetables Ltd.
DR. ABC Sandwiches $60
1 box of tomatoes $60 CR. Sales Revenue $60

Total $60

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 LINE ITEM DISPLAY

Document & Master Display Variant

Record Maintenance Assignment
controls
Field

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PROCUREMENT CYCLE

Purchase Planned MRP PP SD

Order Run Prod Sales
A/P Cash Requisition Order Order

X X (MM)
Request for Quotation
Quotation
Vendor
Purchase
Payment
Order
(FI)
(MM)

Invoice
FI Verification Goods FI
A/P GR/IR (MM) Receipt Inventory GR/IR

23 X X (MM) X X
POSTING A GOODS RECEIPT

Stock GR/IR Clearing

Inward movement on
goods receipt

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INVOICE VERIFICATION

Materials Management Financial Accounting

PO
Open Items

Goods Invoice
Receipt Verification

Invoice
POSTING THE INVOICE

Stock GR/IR Clearing Vendor

Goods Receipt

Invoice Receipt
(Invoice Verification)
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PAYMENT IN THE PROCUREMENT CYCLE

MM Purchase Order

MM Goods Receipt

MM Invoice Posting

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FI Payment
ACCOUNTS PAYABLE

PO

GR FI
Invoice
Accounts Payable (A/P)

Display Vendor
Account Balances

Create, Display Process Process

and change Down Payment Outgoing
Vendor Master and Payment
Records Credit Memo

Create Vendor
Display / Change Invoices Manually
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Vendor Line Items (no MM)
PAYMENT PROCESSING

Vendor A Vendor A Vendor B Vendor C

Invoice In Invoice In Invoice In Invoice

Manual Payment
Payment Program

OR

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Check Bank Transfer
 AP-INTEGRATION

• Accounts Payable Accounting is integrated with the general

ledger in real-time.
• All postings to vendor accounts will also be made to the
general ledger at the same time.
• Depending on the transaction, the system updates various
general ledger accounts (such as payables and down
payments).
• Flexible account analysis features and due date forecasts
provide with an overview of individual vendor account status.
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VENDOR MASTER RECORD

The vendor master record provides the following:

an overview of all data for a given vendor

flexible data access
baseline data used to control payment transactions and to represent business
processes (preliminary invoice posting)
In addition, the vendor master record's flexible design is well suited for special
needs.
MASTER DATA STRUCTURE

Each master record contains three data categories. They help you represent various
organizational structures within a given operation:

• General Data:
- Data that applies equally to each company code and purchasing
organization within a company.

• Company Code Data:

- Data that reflects the Company’s specific arrangements with the
vendor.

• Purchasing Organization Data:

- Data that varies from one company's purchasing organization to
another.

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THE BANK ACCOUNTING PROCESS IN SAP HANA

Bank Accounting components include:

House Banks as Master Data elements

Incoming Payments
Outgoing Payments
Payment methods
The Bank Reconciliation process
Cash Journals
OUTGOING PAYMENTS – BUSINESS PROCESS

• Outgoing Payments will be in most cases through the Automatic

payment Program. (T Code F110)

• Automatic check generation per payment document will be

facilitated.

• The following Accounting entry will get generated:

Vendor (Reconciliation A/c)…………..Dr.
Bank Outgoing payments A/c………...Cr.
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 ACCOUNTS RECEIVABLES IN SAP HANA

• About Accounts Receivable

• Customer master record
• Incoming Payment
• Special GL Transaction

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 ACCOUNTS RECEIVABLE ACCOUNTING

• Accounts receivable accounting in SAP maintains and manages

customer accounting data. It is also an integral component of
sales management.

• If a customer order results in delivery and subsequent invoicing,

then these transactions are posted automatically in the
accounting system.

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 CUSTOMER MASTER RECORD

The customer master record is characterized by the following features:

 It provides an overview of all of customer’s data at any time.

It forms the data base that controls automatic dunning and automatic
payment transactions.
The layout of customer master records also leaves room for special
requirements.

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MASTER DATA STRUCTURE

The three-part structure of master records makes it possible to flexibly depict

the various organizational structures of an operation:

 General Data: This is data that is equally relevant to every company code
and every sales organization within a company.
 Company Code Data: This is data that reflects the company-specific data for
the customer.
 Sales Organization Data : This is data with different characteristics for a
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company’s sales organizations and distribution channels.
 SPECIAL GL TRANSACTIONS

• These transactions find place in alternate reconciliation accounts and are not posted
to the normal reconciliation accounts of the customer.

• These are basically of the nature of Down Payments, Security Deposits etc.

• In respect of Down payments, the system will prompt the existence of the same at the
time of Invoice posting and the same can be cleared using the “Down payment
clearing” or the “Customer-Account Clear” functionalities.

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PAYMENT TERMS

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CUSTOMER MASTER RECORD - SALES AREA DATA

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CUSTOMER INFORMATION SYSTEM

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 THANK YOU

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