Better business it collaboration using a work system perspective - run it as ...
Sap financial reporting
1. SAP Financial Reporting
• Aims & Objectives
– Introduction to SAP financial modules
– Understanding of SAP cost objects
– Overview of University accounting structure
– Outline of available reports
– Confidence in using reports
2. SAP Help
• Documentation
• ISS website
http://www.leeds.ac.uk/iss/infosystems/
• SAP on-line help
• Superusers
• Helpdesk 33333
3. What is SAP?
• Enterprise Resource Planning system
• SAP world’s largest ERP software supplier
• Based in Walldorf, Germany
• Implemented at Leeds in April 1999
• Continuing programme of development
4. Components of SAP
Finance
Human Resources
• Personnel Management
• Payroll
Logistics
• Purchasing
• Sales
• Production
• Project System
5. Reporting Requirements
• Income & Expenditure
• Balance Sheet
• Cash Flow
• Department Costs
• Project costs
• Costs v plan
Financial
Accounting
Financial
Accounting
Management
Accounting
Management
Accounting
7. Components of Controlling
Overhead Cost Controlling
• How high are the costs of organisational activities?
• Are they within budget?
CO
OM
CO
OM
Cost & Revenue Element Accounting
• What costs occur within our organisation?
CO
CEL
CO
CEL
Profit Centre Accounting
• How profitable are the enterprise areas?
EC
PCA
EC
PCA
8. SAP Cost Objects
• Used to track where costs occur within the organisation
Cost
Centres
Internal
Orders
Project
System
WBS
Elements
CO & PSCO & PS
Controlling &Controlling &
Project SystemProject System
Cost Objects
}
Balance
Sheet
Profit
Centres
9. Cost Centres
• An organisational unit within SAP to which costs (and income) can
be assigned
• Six digit number e.g. 252000
• Used to track costs of departments/major activities
10. Cost Elements
• Used to collect and summarise costs according to classification
• Five digit number e.g 50010
• Main ranges:
• 40000 to 49999 External Income
• 50000 to 69999 External Costs
• 70000 to 74999 Internal Income
• 75000 to 75999 Internal Costs
• 80000 to 89999 Secondary Transfers
11. Cost Element Groups
• Cost elements can be combined into groups of the same type
• Used to create reports
• Standard reporting group REP_01
• Displays costs within main University budget headings
Example
• KAH3 - Display cost element group
12. Cost Centre Structures (1)
Standard hierarchy
• Tree structure containing all cost centres
• Reflects University accounting structure
• Core activities - DC
• Other services - DS
• Restricted funds - OR
• Endowment funds - EN
• Research awards - RG
13. Cost Centre Structures (2)
Department Codes
• AUVI - Media Services
• CSER - Careers
• INSS - ISS
• LACE - Language Centre
• LIBR – Library
Example: DC-RC-LIBR – Library core activities
14. Cost Centre Structures (3)
Academic
Services
Library CareersISS
381513
SAP Support
381652
SAP Projects
• Can report on individual cost centres or groups of cost centres
Alternative cost centre groups
15. Cost Centre Structures (4)
Examples
• OKENN - Display cost centre standard hierarchy
• KSH3 - Display cost centre group
16. Internal Orders
• Cost object used to monitor costs at a detailed level
• Eight digit number e.g. 95000001
• Linked to cost centre – provides sub-analysis
• Simplifies cost centre structure
• Used to track costs of individual activities e.g. projects, short courses
17. The Internal Order/ Cost Centre relationship
78500001
Internal Order
78500002
Internal Order
78500003
Internal Order
278520
COST CENTRE
Many to One Relationship
18. Internal Order Groups
• Orders can be grouped into a structure
• Many levels as required
• Maintained by departments – no standard hierarchy
• Used for planning and reporting
21. Reports
• Cost centre reports
• Internal order reports
• Report navigation
• Printing reports
• Exporting to Excel
Editor's Notes
We saw earlier when you post to a cost center, the system generates a statistical posting into a profit center, there’s relationship between the two areas. In the same way, there is a relationship between internal orders and cost centers. Each time a transaction is posted to an internal order, the sap system creates two entries to the management accounting information system.It posts a statistical entry to the order and an actual entry to the cost center. Once again there is the potential to have a many to one relationship between the order and the cost center.
The University uses internal orders in order to provide more detailed analysis of expenditure at resource center level. Once again, it is possible to set up internal order groups in order to facilitate reporting and there are no constraints as to the combination of order groups you can create.
