SAP Financials & SAP Controlling


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This document explains about the differences between SAP FI and SAP CO.

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SAP Financials & SAP Controlling

  1. 1. SAP FINANCIALS & SAP CONTROLLING DIFFERENCES BETWEEN SAP FI AND SAP COPrepared By: Ms.Pramila Nagaraj First Class MBA Finance Graduate (2009-10) Global Academy of Technology, Bangalore (VTU- Belgaum) Trained up in SAP FICO @ SAPTAC Bangalore (FRESHER)
  2. 2. SAP FINANCIALS/CONTROLLING © SAPTAC BANGALORE Differences Between: SAP FI & SAP CODeactivation & Retirement of Asset:When asset is sold or scrapped with retirement posting, the asset value date is updated asdeactivation date.You can also plan deactivation of asset by entering future date in deactivation date field assetmaster data.ABGF and AB08:AB08 is used to Reverse the amount posted to an asset - reverses the asset document.ABGF is for passing a credit memo using an adjustment account (offsetting account) in the nextyear.KO88 and KO8G:KO88 is used for settling single order (more like day to day work) used settlement to finalassetKO8G is used periodical to select a group of internal orders used periodical posting for AUCAsset History and Asset History Sheet:the Asset History is a report which shows the complete history of an asset. All information suchas master data, depreciation area definition, development over the years of useful life.Furthermore this report uses SAP Script.The Asset History Sheet is a report which shows the value flow (= value history) for one year inthe asset useful life.Manual depreciation and unplanned depreciation:Manual depreciation is when you use in the asset a Manual depreciation key.Unplanned depreciation you use additional on a Manual or another depreciation rule.GL Planning & Cost element planning:GL Planning would be carried out in FI and can be done for all P&L and B/S GL accounts. Incase controlling is active then you can try for Cost element planning for P&L accounts. TheCost element planning will also be made use of for activity type plan price calculation inproduct costing © 2010-2012 ALL RIGHTS RESERVED
  3. 3. SAP FINANCIALS/CONTROLLING © SAPTAC BANGALOREBADI and USER-EXIT:i) BADIs can be used any number of times, where as USER-EXITS can be used only one time.Ex:- if your assigning a USER-EXIT to a project in (CMOD), then you cannot assign the same toother project.ii) BADIs are oops based.LIV and Normal Invoice document:LIV is useful for verifying goods which related to MM. When goods purchased or when receivedverifying the invoice details like quantity, rate, and invoice number etc., PO with the invoice.LIV is linked to FI and MM. But FI invoice is creating only in FI, it no where linked to anymodule.Entries are different in both cases.Consolidated Business Area and Cost Centre Grouping:Business consolidation is for more of consolidation purpose and cost centre grouping is morefor management reporting purpose for cost control purposes. Both the organizational unitsserve for different purposes. Consolidated business will not have much meaning unless you gowith EC-CS. Cost Centre Groups are much for control purpose and help in managerialreporting. Business Units are part of FI Organizational Structure and Cost Centres are part ofCO organizational structures.COPA & PCA :In Profit Centre Accounting Costs and Revenue are matched to find the profitability of theInvestment Centre. The shared services expenses are allocated equitably in between the profitcentres to find out the accurate ROI of the Investment Centres. Here you will get theSegmental Profit and loss account.Whereas in the case of COPA, we get Product profitability up to Net income before Corporatetax. The Cost of Sales is matched with the revenue to get the gross margin per each product aswell as marketing segment. Then selling overhead and Corporate expenses are allocated to theproducts on the basis of revenue and we get EBITDA (Earnings before Interest, Debentureinterest and tax. The Long term Interest and debenture interest shall also be allocated to theproducts equitably. Consequently, it is able to know the profitability of the products beforepayment of tax. © 2010-2012 ALL RIGHTS RESERVED
  4. 4. SAP FINANCIALS/CONTROLLING © SAPTAC BANGALORETAXINJ & TAXINN:The only difference between TAXINJ & TAXINN is that TAXINJ is formula based tax procedurewhich is dependant to a large extent on routines to calculate taxes at each level.TAXINN on the other hand is condition based tax procedure which is very similar to thestandard pricing procedure & is not dependant on routines and other programs to fetch taxes.It is simply dependant on condition records maintained for each of the tax conditions.Prior to R/3 Enterprise we had only formula-based and from R/3 Enterprise version you willhave the option of Formula-based or Condition-based. If you select TAXINN, it will support onlycondition- based excise determination. And if select TAXINJ, you will have the option ofFormula -based and Condition-based (in SD not MM).If you have future plans for extending your organisation to our new dimension product such asCRM....then using TAXINJ would mean that the formulas would need to be copied/rewritten tothe CRM IPC. Where as you would not be required to do that in TAXINN....So if you do not have any plans for extending SAP solutions in your organisation then you canuse TAXINJ, else it is recommended that you use TAXINN only.Controlling and enterprise Controlling:In controlling module you define the cost centres and in enterprise controlling you define theprofit centres. SAP cannot generate the profit and loss account and balance sheet for everycost centre but can generate P&L and balance sheet for each and every profit centre.Enterprise Controlling is a separate module altogether and consists of Consolidation and PCA aswell. Whereas Controlling is a module which consists of CCA,PA, Product Costing ,IO etcActivity Types & SKFs :Stat key figures are just that they have no financial impact in Controlling but may be used forreporting and allocation purposes etc.Activity type are associated with a sender (usually costcentre with a specific rate). Activity type will always carry rate against it where as SKF won’thave any rate. It means activity type is used for both allocation and absorption where as SKFcan only be used for allocation.Example -Activity types in production cost centers are machine hours or finished units.Stat key figures are just that they have no financial impact in Controlling but may be used forreporting and allocation purposes etc. Activity type are associated with a sender (usually cost © 2010-2012 ALL RIGHTS RESERVED
  5. 5. SAP FINANCIALS/CONTROLLING © SAPTAC BANGALOREcentre with a specific rate). When an activity posting is made with either CATS or KB21 atransfer posting is made for the quantity * rate. This creates a CO posting between 2 differentobjects (sender and receiver) SKF is not a real cost object, it carries statistical posting only=so it solely for reporting and analysis. However activity type is use for cost allocation fromone cost object to another. Activity type for example No of Employee, Production hr which wecan use to charge production over head to production order.CK91 and CK86:CK91 is creating a Procurement Alternative where you define that source of procurement for asaid material / plant whether it would be stock transfer / production etc.Where CK86 costing amaterial based on a Procurement alternative.Production Order and Product Cost:Transaction for product cost collector is KKF6n. the product cost collector for that particularmaterial, plant for repetitive manufacturing, production version it is used. As cost is collectand settle on period base. While the production orders costing done on order base andsettlement also carried for order. In REM settlement is against a period. Because production isnot dependent by order. So to settle the cost for all the orders in certain period ex. for amonth product cost collector is required. In this product cost collector, cost will store for allthe orders. In Production order or process order, settlement against each order. So no need tocreate product cost collector. In production orders can be used as a Cost object. Sinceproduction order is a cost object the costs can be settled to the cost centres or Sales ordersusing the process order as a cost carrying object. In REM there is no Production order. HenceProduct Cost Collectors are used. The cost can be settle period or quantity wise. © 2010-2012 ALL RIGHTS RESERVED