SAP FINANCIALS INTEGRATION  SAP FI ECC6.0 INTEGRATION WITH OTHER MODULESPrepared By:               Ms.Pramila Nagaraj     ...
SAP FI Integration with Other ModulesOverviewFinancial activities from other SAP modules are integrated with FIOverview – ...
SAP FI Integration with Material Management (MM)Procure to Pay   •   Purchasing Master Data           –     Vendor Master ...
Purchasing Data – Vendor Master           © 2010-2012 ALL RIGHTS RESERVED
Purchasing Data – Material Master   •   Pricing control of material: Standard price or Moving Average Price   •   Valuatio...
Purchase Order – Account Assignment   •   Determine purchase order specification           –   For example, what the purch...
Account Assignment = Blank (Material)     Goods Receipt        Dr. Material        Cr. GR/IRAccount Assignment = A (asset...
–   Indicates which account is used at goods receipt and invoicing       Goods Movement – Account Determination (2 of 3)  ...
Account Determination – Example        Account Determination – Configuration           © 2010-2012 ALL RIGHTS RESERVED
Invoice Verification    •   When a vendor invoice is entered through MM invoice verification, automatic posting is        ...
FI Invoice from Purchase Order   •   Transaction code ME23N   •   Go to PO History   •   Click on the Invoice Receipt mate...
FI Invoice from Purchase Order (cont.)            © 2010-2012 ALL RIGHTS RESERVED
SAP FI Integration with SDSales Master Data – Customer Master           © 2010-2012 ALL RIGHTS RESERVED
Customer Credit Management   •   Credit limit is assigned per customerWe can determine when the checking is done: order, d...
Sales Order – Credit Check Example   •   System checks customer outstanding balance against the credit limit allowed befor...
Sales Order – Revenue Account Determination (2 of 3)Account key is assigned to condition typeSales Order – Revenue Account...
Condition type    Sales Org Account keyProfit Center Assignment in Material Master   •   Default profit centre is maintain...
Billing/Invoicing (1 of 3)    •   When a billing document is created, the system automatically creates all relevant       ...
Billing/Invoicing (3 of 3)    •   Display Billing document from FI Invoice:            –    Transaction code FB03         ...
SAP FI Integration with Controlling   •   Controlling (CO) and Financial Accounting (FI) are independent components in the...
Transaction Type: SettlementTransaction Type: Allocation            © 2010-2012 ALL RIGHTS RESERVED
Accounting Documents   •   Accounting documents consist of FI document, Special Ledger document, Profit Centre       docum...
•   List of Accounting docs:        –   FI document        –   Profit centre document        –   Special Ledger document  ...
SAP Purchase to Pay Flow- SAP MMSAP MM (Materials Management)    1. SAP MM (Materials Management) is a module of the SAP E...
4. PO ProcessingIn the previous step, the buyer has selected the vendor which will provide the material/serviceneeded in P...
One of the main areas covered by MM module is Purchasing/Procurement. The purchasing processis initially started when ther...
Some of the main SAP SD transactions are:   1.   VA01 – Create Customer Order   2.   VL01N – Create a Delivery   3.   VA03...
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SAP Financials Integration with MM,SD & CO (ECC6.0)

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This document relates to SAP Financial System ECC6.0 integration with other SAP Modules like MM, SD, and CO. Copyrights of SAPTAC Bangalore.

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SAP Financials Integration with MM,SD & CO (ECC6.0)

  1. 1. SAP FINANCIALS INTEGRATION SAP FI ECC6.0 INTEGRATION WITH OTHER MODULESPrepared 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) © 2010-2012 ALL RIGHTS RESERVED
  2. 2. SAP FI Integration with Other ModulesOverviewFinancial activities from other SAP modules are integrated with FIOverview – Business Process © 2010-2012 ALL RIGHTS RESERVED
  3. 3. SAP FI Integration with Material Management (MM)Procure to Pay • Purchasing Master Data – Vendor Master – Material Master • Procure to Pay – Purchase Order – Account Assignment • Procure to Pay – Goods Movement – Automatic account determination for goods movement (goods receipt, goods issue, transfer) • Procure to Pay – Invoice Verification – Automatic account determination for invoice verification © 2010-2012 ALL RIGHTS RESERVED
  4. 4. Purchasing Data – Vendor Master © 2010-2012 ALL RIGHTS RESERVED
  5. 5. Purchasing Data – Material Master • Pricing control of material: Standard price or Moving Average Price • Valuation Class: determine G/L accounts which needs to be updated for goods movement © 2010-2012 ALL RIGHTS RESERVED
  6. 6. Purchase Order – Account Assignment • Determine purchase order specification – For example, what the purchase order is raised for, e.g., asset, non-stock, services – Only for non-material purchase orders – Nature of the account assignment (cost object), e.g., cost centre, sales order, project – Indicates which account is used at goods receipt and invoicingPurchase Order – Account Assignment (cont.) • Determine purchase order specification – FI posting will be created automatically based on the account assignment and account determination (for material purchase) – Example: © 2010-2012 ALL RIGHTS RESERVED
  7. 7. Account Assignment = Blank (Material)  Goods Receipt Dr. Material Cr. GR/IRAccount Assignment = A (asset) Goods ReceiptDr. AssetCr. GR/IRAccount Assignment: Example Enter Account assignment Cat here List of Account CategoryGoods Movement – Account Determination (1 of 3) • Determine purchase order specification – For example, what the purchase order is raised for, such as asset, non-stock, services – Only for non-material purchase orders – Nature of the account assignment, for example, cost center, sales order, project © 2010-2012 ALL RIGHTS RESERVED
  8. 8. – Indicates which account is used at goods receipt and invoicing Goods Movement – Account Determination (2 of 3) • Determine purchase order specification (cont.) – FI posting will be created automatically based on the account assignment and account determination (for material purchase) – Example:Account Assignment = Blank (Material)  Goods Receipt Dr. Material Cr. GR/IRAccount Assignment = A (asset) Goods Receipt Dr. Asset Cr. GR/IRGoods Movement – Account Determination (3 of 3) • Roadmap to Automatic Posting – Valuation Class is maintained in Material Master – Accounting View • For example, Material 100-401 with Valuation class 7900 – Account determination has been configured for movement type and valuation class • For example, Movement Type 101 (goods receipt) for valuation class 7900 is debited to stock account 304000 © 2010-2012 ALL RIGHTS RESERVED
  9. 9. Account Determination – Example Account Determination – Configuration © 2010-2012 ALL RIGHTS RESERVED
  10. 10. Invoice Verification • When a vendor invoice is entered through MM invoice verification, automatic posting is generated to FI • If the Purchase Order is set with goods receipt, invoice verification is a 3-way matching (e.g., quantity from the goods receipt and price/invoice amount from the PO) • Transaction code MIROPurchase Order from FI Invoice • Purchase Orders can be drilled into from FI invoice and vice versa – Transaction code FB03 – Enter the FI document number – Go to Environment and select Original Document – Click on Purchase Order number to display the PO © 2010-2012 ALL RIGHTS RESERVED
  11. 11. FI Invoice from Purchase Order • Transaction code ME23N • Go to PO History • Click on the Invoice Receipt material document • Click on FI documents button • Double click on the FI doc number to display the accounting journal © 2010-2012 ALL RIGHTS RESERVED
  12. 12. FI Invoice from Purchase Order (cont.) © 2010-2012 ALL RIGHTS RESERVED
  13. 13. SAP FI Integration with SDSales Master Data – Customer Master © 2010-2012 ALL RIGHTS RESERVED
  14. 14. Customer Credit Management • Credit limit is assigned per customerWe can determine when the checking is done: order, delivery, goods issued, etc. © 2010-2012 ALL RIGHTS RESERVED
  15. 15. Sales Order – Credit Check Example • System checks customer outstanding balance against the credit limit allowed before a sales order can be savedSales Order – Revenue Account Determination (1 of 3)  Condition Type determines items included in the Sales Order, for example, material price, tax, discount, etc. © 2010-2012 ALL RIGHTS RESERVED
  16. 16. Sales Order – Revenue Account Determination (2 of 3)Account key is assigned to condition typeSales Order – Revenue Account Determination (3 of 3)Account key and other parameters determine GL accounts for automatic posting during A/Rinvoicing © 2010-2012 ALL RIGHTS RESERVED
  17. 17. Condition type Sales Org Account keyProfit Center Assignment in Material Master • Default profit centre is maintained in Material Master • This profit centre will be taken to Sales Order and then to A/R invoice generated from the Sales Order © 2010-2012 ALL RIGHTS RESERVED
  18. 18. Billing/Invoicing (1 of 3) • When a billing document is created, the system automatically creates all relevant accounting documentsBilling/Invoicing (2 of 3) © 2010-2012 ALL RIGHTS RESERVED
  19. 19. Billing/Invoicing (3 of 3) • Display Billing document from FI Invoice: – Transaction code FB03 – Enter the FI document number – Go to Environment and select Original Document © 2010-2012 ALL RIGHTS RESERVED
  20. 20. SAP FI Integration with Controlling • Controlling (CO) and Financial Accounting (FI) are independent components in the SAP system but the data flow between the two components takes place on a regular basis • All data relevant to cost flows automatically to CO from FI • The system assigns the costs and revenues to different CO account assignment objects like: • Cost centres • Business processes • Projects or orders • All relevant accounts in FI are managed in CO as cost elements or revenue elements, which enables one to compare and reconcile values from CO and FITransaction Type: Purchase © 2010-2012 ALL RIGHTS RESERVED
  21. 21. Transaction Type: SettlementTransaction Type: Allocation © 2010-2012 ALL RIGHTS RESERVED
  22. 22. Accounting Documents • Accounting documents consist of FI document, Special Ledger document, Profit Centre document, Profitability Analysis document, and CO document • Display Billing document from FI invoice: • Transaction code FB03 • Enter the FI document number • Go to Environment and select Accounting Documents © 2010-2012 ALL RIGHTS RESERVED
  23. 23. • List of Accounting docs: – FI document – Profit centre document – Special Ledger document – CO document © 2010-2012 ALL RIGHTS RESERVED
  24. 24. SAP Purchase to Pay Flow- SAP MMSAP MM (Materials Management) 1. SAP MM (Materials Management) is a module of the SAP Enterprise Resource Planning (ERP) package that is used for Procurement Handling and Inventory Management. 2. The module has two important master data – material and vendor. 3. Broadly, the various levels that can be defined for a SAP MM implementation are: Client, Company Code, Plant, Storage Location and Purchase Organization. 4. This is the largest and most complex in all of SAP modules. It can be divided into five major components. There are: materials management, plant maintenance, quality management, production planning and control, and a project management system. Each is divided into number of subcomponents. 5. SAP Materials management covers all tasks within the supply chain, including consumption-based planning, planning, vendor evaluation and invoice verification. 6. It also includes inventory and warehouse management to manage stock until usage dictates the cycle should begin again. Electronic Kanban/Just-in-Time delivery is supported. 7. Material Management covers the functionality required to purchase goods and services, manage inventory, and inspect incoming materials. 8. The Purchasing function includes creation of requisitions, requisition approval, purchase order generation, and receipt of goods and services. 9. Inventory Management includes issuing and transferring inventory, inventory restocking, and the inventory count and adjustment processes.The basic of the purchase to pay flow is explained below.1. Determination of RequirementsIn this step, there is a requirement of material or service, which must be procured externally, fromthe user. The requirement must be recorded as Purchase Requisition (PR) document in SAP MM.Purchase Requisition (PR) is an internal purchasing document in SAP ERP that is used to givenotification to responsible department about the requirement of material/service and to keeptrack of such requirement.2. Determination of the Source of supplyAfter the PR has been created in the previous step, the responsible department must process it.The buyer of the procurement department must determine the possible sources of supply of thematerial/service specified in the PR.3. Vendor SelectionIf in the previous step, there are some outline agreements or info record documents that can beused as references to create a PO, the buyer can select or choose which vendor that will beappointed to provide the material/service at this time. © 2010-2012 ALL RIGHTS RESERVED
  25. 25. 4. PO ProcessingIn the previous step, the buyer has selected the vendor which will provide the material/serviceneeded in PR. In this step, the buyer creates a Purchase Order (PO) based on the PR and thereference document (that can be an outline agreement, an info record, or a quotation).5. PO MonitoringAfter the PO has been sent to the vendor, the buyer has the responsibility to monitor whether thevendor delivers the material/service at the right time on the right place.6. Goods ReceiptWhen the vendor delivers the material or perform the service, the responsible person of thecompany must perform the goods receipt (GR) or service acceptance (SA) transaction. The GR/SAwill update the PO history.7. Invoice VerificationAfter the vendor delivered the material/service, it will send the invoice to the person responsiblein the company. Invoice is a formal document issued by a vendor to the company to request thepayment for the material or service that the vendor has already provide to the company accordingto the terms of payment agreed in the PO.8. Payment ProcessingAfter the Invoice Receipt (IR) transaction has been posted, the vendor’s account payable willincrease and the company must process the payment to that vendor as stated in the terms ofpayment of the PO. The payment transaction will be performed in FI module. After the paymenthas been posted, the vendor’s account payable will be debited and the cash or bank account willbe credited.SAP MM stands for Materials Management and this is part of SAP Logistics includes: 1. Requisitions 2. Purchase orders 3. Goods receipts 4. Accounts payable 5. Inventory management 6. BOM’s 7. Master raw materials, finished goods etcSome of the Main SAP MM Transactions are: 1. ME51N – Create Requisition 2. ME21N – Create Purchase Order 3. MIGO – Goods receipt a PO 4. MIRO – Create Invoice © 2010-2012 ALL RIGHTS RESERVED
  26. 26. One of the main areas covered by MM module is Purchasing/Procurement. The purchasing processis initially started when there is a requirement of material/service from a user. If thematerial/service cannot be obtained from company’s internal resource, the responsible person ofthat company must find the vendor/supplier which can provide it on the required date. Thepurchasing process is ended when the payment processing to the vendor that supply thematerial/service has been done.SAP Order to Cash Flow- SAP SDSAP SD is simply Sales and Distribution 1. It’s all about selling goods & distributing them to relevant parties and gets the payments for relevant parties. 2. Helps to optimize all the tasks and activities carried out in sales, delivery and billing. 3. Key elements are: pre-sales support, inquiry processing, quotation processing, sales order processing, and delivery processing, billing and sales information system. 4. SAP SD application components fulfills many of the international requirements that supports the sales and distribution activities with functions such as pricing and conditions, customer order processing, delivery monitoring, billing, credit and risk management. 5. The SAP sales and distribution is part of the logistics module that support your customers, starting from quotations, sales order and all the way towards billing the customer. 6. It is tightly integrated with the MM and PP functional modules. It allows companies to input their customer sales price, check for open orders and forecast etc.The most important basic functional features in the SD module are: 1. Pricing 2. Availability Check 3. Credit Management 4. Material Determination 5. Output Determination 6. Text ProcessingSAP SD stands for Sales and Distribution and this is the module which is used to manage customer-focused activities, from selling to delivery, including - 1. RFQ 2. Sales orders 3. Pricing 4. Picking (and other warehouse processes) 5. Packing 6. Shipping © 2010-2012 ALL RIGHTS RESERVED
  27. 27. Some of the main SAP SD transactions are: 1. VA01 – Create Customer Order 2. VL01N – Create a Delivery 3. VA03 – Display a Order 4. VL02N – Change Customer Delivery (F20 is to post a good issue) 5. VA05 – List Orders 6. VF01 – Create a InvoiceThe Order to Cash flow roughly follows the following sequence - 1. A customer orders some items from your company by creating a sales order 2. Your company decides to deliver the items ordered by the customer. 3. This is recorded by creating a outbound delivery document 4. Once the items are available for sending to the customer, you post goods issue which reduces your inventory and puts the delivery in transit. This will create a material document. 5. You will post goods but the material document created will be stored in tables. 6. You will then create shipment document to actually ship the items. 7. You finally create a sales billing document. 8. This will have a corresponding accounting document created that will be in different tables. 9. When customer pays to your invoice, it will directly hit your AR account in FI. © 2010-2012 ALL RIGHTS RESERVED

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