Exd fico zero level training

Agenda – Zero Level Training
 Functional Modules Introduction
SAP Financials (FI)
SAP Controlling (CO)

SAP Financials Organizational Structure
Company Code
Client
Chart of Accounts
Chart of Depreciation

SAP FICO Organizational Structure
Company Code
Client
Controlling Area
Cost Center
Profit Center
Chart of Accounts

Company Code
Client
Controlling Area
Cost Center
Profit Center
Chart of Accounts
Client: The client is the highest level in the SAP System hierarchy.
Specifications that you make, or data that you enter at this level are valid for all company codes
and for all other organizational structures. You therefore only need to make these specifications,
or enter this data once. This ensures that the data is consistent.

Company Code
Client
Controlling Area
Cost Center
Profit Center
Chart of Accounts
Company Code: A company code represents an independent legal accounting entity.
It is the smallest organizational unit for which complete, independent accounting can be carried
out. This includes the entry of all transactions subject to posting and the creation of all items for
Legal individual financial statements, such as the balance sheet and the profit and loss statement.

Company Code
Client
Controlling Area
Cost Center
Profit Center
Chart of Accounts
Chart of Accounts: The chart of accounts in SAP ( COA ) is a list of GL accounts master record
That are used by the organization. The chart of accounts must be assigned to each company
code. Chart of Accounts is defined at client level.

Company Code
Client
Controlling Area
Cost Center
Profit Center
Chart of Accounts
Chart of Depreciation: Charts of depreciation is used in order to manage various legal
Requirements for the depreciation and valuation of assets. The chart of depreciation is
usually at a country level and assigned to a company code. It includes all the procedures
for the assets assigned under that chart.

Company Code
Client
Controlling Area
Cost Center
Profit Center
Chart of Accounts
Controlling Area: Controlling area is the central organizational unit in CO module. It represents
a closed system for cost accounting purposes, where costs and revenues can be managed.

Company Code
Client
Controlling Area
Cost Center
Profit Center
Chart of Accounts
Profit Center: Organizational unit within a controlling area that represents a location where
revenues occur.
Profit Center Hierarchy: Profit Center Hierarchy is a tree structure for grouping all profit
centers which belong to a controlling area.

Company Code
Client
Controlling Area
Cost Center
Profit Center
Chart of Accounts
Cost Center: Organizational unit within a controlling area that represents a location where
costs occur.
Cost Center Hierarchy: Cost Center Hierarchy is a tree structure for grouping all cost centers
which belong to a controlling area.

Overall SAP Organizational Structure
Organizational units are used to structure business functions and for reporting.
Company Code
Storage Location
Sales Organization
Distribution Channel
Shipping Point
(Plant is one of the condition to
derive shipping point)
PlantDivision
Purchasing Organization
Controlling Area
Profit Center
Cost Center
Chart of Accounts
Client
Logistic related
Finance &
Controlling related
A Company Code is a unit for
which legal financial statements
must be prepared.
The Controlling
Area is the
business unit
where Cost
Accounting is
carried out.
Sales Organization is
the central
organizational
element that controls
the terms of sale to
the customer.
Distribution Channel is
the element that
describes through what
channel goods and/or
services will be
distributed to the
customer.
Personnel Area
HCM related

SAP Financials Components
 General Ledger Accounting
 Accounts Payable
 Accounts Receivables
 Asset Accounting
 Cash & Bank

General Ledger Master Data
 The GL master record controls how business transactions are recorded and
processed by the system.
 Specific control checks are assigned in GL master Data which are triggered at the
time of transactional posting.

General Ledger Accounting
 The General Ledger (G/L) contains records of all posting-relevant business
transactions in General Ledger accounts. In order to get a better overview, the
general ledger frequently contains only collective postings. The individual posting
data is recorded in sub ledgers, which update the general ledger in summarized
form.
 The central task of General Ledger accounting is to provide a comprehensive picture
of external accounting and accounts.
 General Ledger Accounting 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.

Accounts Payable Master Data
 The master record contains data that controls how business transactions are
recorded and processed by the system.
 It also includes all the information about a vendor that you need to be able to conduct
business with him.
 Vendor master data is used by both the accounts and purchasing department in an
organization.

Accounts Payable
 Accounts Payable component records and manages accounting data of all vendors.
It is also an integral part of the purchasing system, where deliveries and invoices are
managed according to vendors.
 Postings made in Accounts Payable are simultaneously recorded in the General
Ledger where different G/L accounts are updated based on the transaction involved
(such as payables and down payments).
 The system also maintains forecasts and standard reports that can be used to keep
track of all the open items.

Process Flow-Accounts Payable
Process Flow for Accounts Payables
Material
Management
AccountsPayable
Raise Purchase
Requisitions
Create PO with
reference to PR
Goods Receipt
Posting
Invoice
Verification
Payment to
Vendor
Clearing of
Vendor
Start
End

Accounts Receivables Master Data
 The master record contains data that controls how business transactions are
recorded and processed by the system.
 It also includes all the information about a customer that you need to be able to
conduct business with him.
 Customer master data is used by both the accounts and sales department in an
organization.

Accounts Receivables
 Accounts Receivable component records and manages accounting data of all
customers. It is also an integral part of sales management.
 All postings in Accounts Receivable are also recorded directly in the General Ledger.
 It also provides the data required for effective credit management.

Process Flow-Accounts Receivables
Process Flow for Accounts Receivables
Sales&DistributionAccountsReceivable
Raise Sales
Order
Post Goods
Issuance
Billing
Documents/
Invoice
Direct billing
document can
also be raised
in FI
Receipts from
Customer/
Collection
Start
End
Clearing of
Customer
ledger

Asset Accounting
 Asset Accounting covers the entire life of the asset from the purchase order or initial
acquisition (which can be managed as an asset under construction) right through to
retirement of the asset. Between these two events, the system handles all asset-
related business transactions and ensures integration with the general ledger.

Process Flow-Assets
Process Flow for Asset Accounting
Material
Management
AssetAccounting
Raise Technical
Purchase
Requisitions for
Asset
Create PO with
reference to PR
Good Receipts
posting/
Capitalization
Asset can also
be directly
capitalized
Asset
retirement as
and when
required
Start
End

Cash Journals
 The Cash Journal is a sub ledger of Bank Accounting. It is used to manage a
company's cash transactions.
 The system automatically calculates and displays the opening and closing balances,
and the receipts and payments totals.
 You can run several cash journals for each company code. You can also carry out
postings to G/L accounts, as well as vendor and customer accounts.

Bank Master Data
 House Bank and Account ID Creation
 Check lot Maintenance

Integration Points
 Integrated with Material Management
 Integrated with Sales & Distribution
 Integrated with Human Capital Management
 Integrated with Controlling

Company Code
Business Area
Client
Controlling Area
Cost Center
Profit Center
Chart of Accounts

Company Code
Business Area
Client
Controlling Area
Cost Center
Profit Center
Chart of Accounts
Controlling Area: Controlling area is the central organizational unit in CO module.
It represents a closed system for cost accounting purposes, where costs and
revenues can be managed.

Company Code
Business Area
Client
Controlling Area
Cost Center
Profit Center
Chart of Accounts
Cost Center: Organizational unit within a controlling area that represents a location
where costs occur.
Cost Center Hierarchy: Cost Center Hierarchy is a tree structure for grouping all
cost centers which belong to a controlling area.

Company Code
Business Area
Client
Controlling Area
Cost Center
Profit Center
Chart of Accounts
Profit Center: Organizational unit within a controlling area that represents a location
where revenues occur.
Profit Center Hierarchy: Profit Center Hierarchy is a tree structure for grouping all
profit centers which belong to a controlling area.

SAP Controlling Processes
PlanningMaster
Data
Actual
Posting
Period End
Closing
Reporting
 Determine and
enter the
planned values.
 E.g., Plan values
for Cost
Elements, Cost
Center, profit
center etc.
 Internal Order
Planning
 Complete
allocation of
actual figures to
the respective
cost object.
 Monthly/Quarter
ly/Annual
Activity
 Cost Element
 Cost Center
 Internal order
 Profit Center
 Monitor actual
figures out of
upstream
systems and
modules (FI,SD,
HR, etc.).
 Allocate actual
figures to the
respective cost
Object.
 Execute
reports for
Management.

Controlling: Cost Element Accounting
 Cost Element Accounting allows Controlling costs and revenues that incur in an
organization, serves as an interface between Financial Accounting and Management
Accounting and ensures that FI and CO are reconciled.

Controlling: Cost Center Accounting
 Cost Center Accounting serves as a tool for monitoring overhead costs and assigning
them to the particular location at which they occurred in line with their source.
 In Cost Center Accounting, Cost Centers can be created according to different
department. It helps to achieve the following objectives:-
 Assigning costs to Cost Centers in a Cost Center hierarchy lets you determine where
costs are incurred within the organization.
 Planning the costs at Cost Center level will help to check the cost efficiency at a
particular Cost Center through variance analysis report.

Controlling: Cost Center Accounting
 SAP AG 1999
Cost Centers and the Standard Hierarchy
H1000: CoCd 2000
H1: IDES Europe
H1000: CoCd 1000
H1120: Internal ServicesH1120: Internal Services
1110 Executive Board1110 Executive Board
H1010: InternalH1010: Internal
H1200: Finance & Admin.H1200: Finance & Admin.
H1210: Admin.H1210: Admin.
1200 Cafeteria
1000 Internal services
H1200: Finance & Admin.
1110 Executive Board
Processing cost centers

Controlling: Internal Orders
 Internal order management is the most detailed operational level of cost and activity
accounting.
 Internal orders can be real or statistical.
 Real orders are normally used to plan, collect, and settle the costs of internal jobs and
tasks. The SAP system enables you to monitor your internal orders throughout their
entire life-cycle; from initial creation, through the planning and posting of all the actual
costs and to the final settlement. E.g. Asset Under Construction.
 Statistical Order is purely for Statistical purpose for Management Analysis purpose.
E.g. To analyze vehicle maintenance cost

Controlling: Profit Center Accounting
 Profit Center Accounting is used for analyzing internal profit of the company. Profit
Centers represent organizational sub-units that operate independently on the market
and bear responsibility for own costs and revenues. In other words, in Profit Center
accounting a company is divided in to Profit Center according to the companies’
requirement e.g. Profit Centers can be setup according to product (product lines,
divisions), geographical factors (regions, offices or production sites) or by department.

 SAP AG 1999
H1
IDES EuropeIDES Europe
H1010H1010
Vehicles
1110
Model R1100
H1000H1000
StockStock
ProductsProducts
H2000H2000
Corporate
H1110H1110
Motorcycle
H1120H1120
Bicycles
1220
Model RX7
1000
Model BX4
1210
Model MX3
1200
Model CV2
H1200H1200
2100
Seats
H1210H1210
Bike Parts
H1220H1220
Sportwear
2200
Shirts
H1230H1230
Helmets
2300
Motorcycle
Helmets
H1300H1300
Sales &
Marketing
H1400H1400
Techical
Department
Accessories
The Profit Center Standard Hierarchy
9000
Corporate
Admin
9010
Corporate
Finance

A1 LtdA Ltd HQ
1000
Cost Centers Cost
Center A
Cost
Center B
Company Codes
Cost
Center C
Cost
Center D
Controlling Area Controlling
Profit
Center
Profit
Center
Profit
Center
Profit
Center
Profit
Center
Profit
Center
Profit
Center
Profit Centers

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