SAP University Alliances

Version 2.2
Authors Simha Magal
Stefan Weidner
Phase I: Financial Accounting
Tom Wilder

Product
SAP ERP 6.0 EhP4
Global Bike Inc.

Level
Beginner

Focus
Configuration: Financial
Accounting

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Agenda

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 Enterprise Structure
 Business rules and parameters
 Master data
 Process execution (testing)
 Exercises

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Enterprise Structure

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 Enterprise structure elements
- Client
- Financial accounting
• Company code
• Business area
- Management accounting
• Operating concern
• Controlling area
- Fulfillment
• Credit control area

 Define / Maintain
- Including some parameters
 Assign

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Enterprise Structure

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Operating
CO-PA Concern

CO-PCA, CO-OM,Controllin
CO-PC
g Area
Controllin
g Area

Company Company
FICode Code

S-Org P- S-Org P-
SD,
Org MM,
Plant, PP, etc.
Org Plant,
etc. etc.

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Company Code

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 Used to represent a legal entity
 Key organizational level for financial accounting
- Books are maintained at the company code level
- Financial statements are generated for company codes

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Company Code

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 One for each legal entity  One for each country

 Buick  GBI USA

 Cadillac  GBI Germany
 Chevrolet  GBI Australia
 GMC
 Shanghai GM

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Business Area

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 Internal divisions of the enterprise
- Define areas of responsibility
 Financial statements are generated for business areas

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Operating Concern & Controlling Area

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 Operating Concern:
GL00
Operating Concern - Relevant to profitability analysis
- Represents external market
segments
NA0
Controlling Area
NA# - Several controlling areas can be
0 # assigned to operating concerns
 Controlling Area
US00
Company Code US## - Organizational level in controlling
- Costs are allocated within a
controlling area
- Several company codes can be
assigned to a controlling area

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Credit Control Area

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 Responsible for customer
credit Enterprise GBI

 Centralized
GL00
Credit Control Area GL##
- Once CCA for the
enterprise
US00 DE00
Company Code US## DE##
 Decentralized
- Multiple CCA for the
enterprise
- Example: North
America, Europe, Asia

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Agenda

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  Enterprise Structure
 Business rules and parameters
 Master data
 Process execution (testing)
 Exercises

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Business Rules and Parameters

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 Global parameters (for CC)
 Account groups
 Field status variants
 Posting periods
 Number ranges
 Tolerance groups

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Business Rules and Parameters

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 Global parameters (for CC)
- Chart of accounts
- Credit control area
- Fiscal year variant
• Define accounting fiscal
year
• Create normal posting
periods
• Create special periods for
adjustments
 Account Groups
- Groups accounts with similar
characteristics
 Define field status
 Field status variants
- ZEXP: Expense accounts
- ZGBS: General Balance
Sheet Accounts
- ZMMA: Material Management
GR/IR Accounts
- ZRAA: Reconciliation
Accounts
- ZREV: Revenue Accounts
 Demo
- Field status variants
- Note: FI global settings-
>Ledgers->Fields

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Business Rules and Parameters

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 Posting Periods
- Define periods
- Assign periods to CC
- Close past periods
 Document number ranges
- For various documents
 Tolerance groups for employees
- Posting limits

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Agenda

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  Enterprise Structure
  Business rules and parameters
 Master data
 Process execution (testing)
 Exercises

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Master Data

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 Chart of accounts
 General ledger accounts
 Subsidiary (sub)ledgers
 Cost elements
 Cost centers
 Statistical key figures

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Chart of Accounts

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 An orderly definition of accounts in the general ledger
 Three types of chart of accounts:
- Operative COA
- Country-specific COA
- Group COA
 Multiple charts of accounts exist
- US (CAUS) , Germany (GKR), Canada (CANA)
• Country specific to meet reporting requirements
- International Chart (INT)
• IFRS

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Chart of Accounts

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 One COA can be used by
multiple company codes
- Different GM companies
(Buick, Cadillac, GMC) can
use the same (US) chart of
accounts
- Shanghai GM will use the
Chinese chart of accounts
 A company must use at least
one chart of account
- Can use more than one
chart of account to create
alternate ledgers

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General Ledger Accounts

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 Used to record all accounting impact of business transactions
 Groups
- Retained earnings account
- Balance sheet accounts
- Income statement accounts
- Reconciliation accounts
 Data in the general ledger accounts are segmented by
organizational level
- Chart of account segment
- Company code segment
- General ledger = COA data + Company code data

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Master Data: General Ledger Accounts

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Demo
• Show available chart of accounts
• Show examples of GL accounts
• Show segments of data

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Master Data: Sub-ledger and Reconciliation Accounts

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Subsidiary Ledgers Reconciliation Accounts
 Are not part of the general  Are general ledger accounts
ledger.  Cannot be posted to directly
 Used to separate accounting
 Maintain the sum of the
for customers, vendors, and
postings in sub-ledgers
assets
 Are specified in the definition
of the sub-ledger
Sub ledger Reconciliation
account account
Customer Accounts
Receivable Demo
• Show sub ledger accounts
Vendor Accounts Payable
• Show connection between sub ledger
Asset (specific) Assets and GL (Customer <--> AR)
• Show non-reconciliation AR and AP
accounts

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Master Data: Sub-ledger and Reconciliation Accounts

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Master Data: Cost Center

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 Location where costs are  Responsible for cost
incurred containment
- Department, individuals,
 Accumulated costs are then
special projects
“charged” to other cost
- Examples
centers
• Copy center
• Security department  Many processes have
• IT Help desk “orders”
- Purchase orders, Production
 Cost bucket used to
orders, Sales orders
accumulate costs
- Expenses can be charged to
- Typically Overhead costs
these orders
• Payroll
• Rent  Collectively objects that can
• utilities absorb costs are called
controlling objects

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Master Data: Cost Center Hierarchy

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Demo
• Cost center
hierarchy

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Cost Elements

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Primary Cost Element
 Associated with expense
accounts in G/L
 All postings in the G/L expense
account are also
(automatically) posted in the
corresponding cost element
 Payroll, rent, utilities, etc
 Typically uses the same
number as G/L account
Secondary Cost Element
 Secondary cost elements are
defined only within CO and
do not have a corresponding
G/L account
 Used for internal cost
allocation among cost
centers
 Example:
- Primary: Electricity, Gas,
Water
- Secondary: Utilities

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Posting in FI and CO

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FI
CO

Supplies Expense Bank Account

Debit Credit Debit Credit PCE

500 500

500
NAAD1000:
Administrative
Costs

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Master Data: Statistical Key Figures

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 An allocation base for cost allocation between cost centers
 Measurable quantity
- Number of employees
- Square feet
- Miles driven
- Minutes of time (phone call)
 Used in periodic allocations and distributions (CO processes)

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Agenda

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  Enterprise Structure
  Business rules and parameters
  Master data
 Process execution (testing)
 Exercises

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Process execution (Testing)

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 Recording of value flows ($$) as a result of other processes and
transactions
- General Ledger Accounting
• G/L postings for rent, utilities, wages, etc.
- Accounts Payable Accounting
• Part of the procurement process
- Accounts Receivable Accounting
• Part of the fulfillment process
- Asset Accounting
• Acquisition, depreciation, retirement

 Processes are executed to test the configuration

- General Ledger Accounting in this Phase
- Other testing will occur in later phases

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Agenda

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  Enterprise Structure
  Business rules and parameters
  Master data
  Process execution (testing)
 Exercises

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Exercises

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 1.1 - Enterprise Structure
- Configure the enterprise structure
 1.2 - Business Rules and Parameters
- Define Business Rules and Parameters
 1.3 - Master Data
- Create needed master data (copy from 00 where possible)
 1.4 – Process Execution (Testing)
- Post several G/L transactions
 Appendices
- Exercises provide detailed instructions for one or few objects (e.g.,
once cost center, once vendor, etc.)
- Appendices provide data from additional objects (cost centers, etc.)
- Don’t forget them!!!!

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Exercises

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Enterprise Rules and Process
Master Data
Structure Parameters Execution

I.1.1: Define Company Code3

I.1.2: Define Business Area5
I.1.3: Define Empty Chart of Accounts6
I.1.4: Maintain Controlling Area7
I.1.5: Define Credit Control Area8
I.1.6: Define Variants for Open Posting Period9
I.1.7: Define Field Status Variants10
I.1.8: Enter Global Parameters11
I.1.9: Assign Company Code to Controlling Area12
I.1.10: Assign Controlling Area to Operating Concern13
I.1.11: Define Standard Hierarchy14
I.1.12: Assign Permitted Credit Control Areas15
I.1.13: Maintain Company Code for Materials16

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Exercises

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I.1.1: Define Company Code Configuration Step

Explanation
Description: In this task, you define your own company code in the United States. The company
code is the organizational unit that allows you to structure your enterprise from a financial
accounting perspective. A company code possesses information that is important for financial
accounting purposes. For example, each company code is assigned to exactly one country.

Warning: See “General Notes and Cautions” about table locks.

Navigation: SAP Customizing Implementation Guide ► Enterprise Structure ► Definition ► Financial

Accounting ► Edit, Copy, Delete, Check Company Code

In the “Choose Activity” pop-up, double-click on Edit Company Code Data.

Navigation

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Exercises

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Tasks and Data Entry:

In the “Change View “Company Code”: Overview” screen, click on the icon.
Enter value as
In the “New Entries: Details of Added Entries” screen, enter the following information: specified
Attribute Description Data Value (except for ##)
Company Code An organizational unit within financial accounting. US## e.g.: US05, Dallas
Company Name Name of Company Code or Company ## Global Bike Inc.
City City name in an address. Dallas
Country The country key contains information which the United States
system uses to check entries such as length of the Find and enter
postal code or bank account number. appropriate
Currency Currency key for amounts in the system. United States Dollar Code/Value
Language The language key designates the language in which English
you display texts, enter texts, or print documents. e.g.: US, USD, EN

Tasks and Data Entry

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Exercises

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 A note about ## vs. ###
- User IDs have three digits at the end: GBI-###
- Configuration can only have 99 users : 01, 02…..99
- Exercises reference ##.
- Substitute the last two digits from their UserID
- User GBI-034 will use 34
 Examples
- Controlling area (North America: NA## -> NA34)
- Company code (US company: US## -> US34)
- Business area (Bicycles: BI## -> BI34)
- Credit control area (Global: GL## -> GL34)
- Exception: Operating concern (GL00 for everyone)
• Technical reason for not using GL##
• Operating concern is a cross client change

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Exercises

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 Two versions
- Student version
- Instructor version
• Includes screenshots
• Notes (need to add more; you can help!)
• Cautions and warnings (need to add more; you can help!)
• Don’t give these to students

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Agenda

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  Enterprise Structure
  Business rules and parameters
  Master data
  Process execution (testing)
  Exercises

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