Financial Accounting

Financial Accounting

·         General Ledger (FI-GL) General Ledger is fully integrated with the other SAP Modules. It is within the General Ledger that all accounting postings are recorded. These postings are displayed in real-time providing up-to-date visibility of the financial accounts.

·         Accounts Payable (FI-AP) Accounts Payable records account postings generated as a result of Vendor purchasing activity. Automatic postings are generated in the General Ledger as well. Payment programs within SAP enables the payment of payable documents by check, EDI, or transfers.

·         Accounts Receivable (FI-AR) the FI accounts receivable component is responsible for monitoring and controlling customer accounts within SAP R03’s financial accounting component

·         Accounting documents. The accounting document respresent the original document in the system. The other processing documents can be used to simplify documents entry. The document remains as a connecting unit in the system until it is archived.

·         Payments. When you enter documents, the system checks whether the minimum accounts assignments have been made, for example, document date, posting date, document type, posting key, account number and anount.

·         Travel Management (FI-TV) Travel Management provides management of all travel activities including booking trips and handling of expenses associated with travel.

·         Payment and transfer to payroll Accounting

Components of management accounting

The my SAP financial key functional area:

•  Management Accounting is comprised of application components in the Controlling (CO)
•  Enterprise controlling (EC) areas

The components of CO and EC include the following key capabilities: Key Controlling capabilities:

Cost  center Accounting

You use cost center accounting for controlling purposes within your organization. It is useful for a source-related assignment of overhead costs to the location where they occurred

Internal Orders

You use internal orders to collect and control cost according to the job that incurred the cost. Can assign budgets for these jobs, which the system monitors, to ensure that budgets are not exceeded

Activity Based Costing

Activity Based Costing analyze cross-departemental business processes. The goals of the whole organization and the optimization of business flows are prioritized.

Product cost controlling

Product cost controlling calculates the cost that occur during manufacture of a product,or provision of a service. It enables you to calculate the minimum price at which a product can be profitably marketed

Profitability Analysis

Profitability analysis analyzes the profit or loss of an organization by individual market segments.

Key enterprise controlling capabilities

Profit Center Accounting, evaluates the profit or loss of individual, independent areas within an organization

Consilidation, enterprise controlling consilidation (EC-CS) provides the ability to consolidate financial data for both external (legal) and internal (profit center) accounting perspectives.

Master Data

Organization Elements in Controlling

-         contolling area

-         company code

-          profit center

Overhead cost controlling,

The mySAP Financial Overhead Cost Controlling (CO-OM) component helps you plan, allocated, control, and monitor overhead in your organization. By plan in overhead areas, can develop standards that allow you to control cost and valuate internal activities. 

Cost center Accounting, the cost center accounting component determines where cost appear in the organization. By recording and allocating costs, you not only make cost controlling possible, you also lay important groundwork for other Controlling components, such as cost object controlling.

Internal Order, the SAP R/3 enables you to monitor internal ordered throughout their entire cost life cycle; from initial creation, through the planing and posting of all the actual costs, to the final seltemet and archiving.

Activity Based Cost, is a relatively new cost accounting method used by some companies to monitor costs by business process rather than costs centers. The goal of ABC is to determine the cost performing a business process.

Product Cost Controlling, is part of mySAP Financial Controlling aplication component and is a tool for managing costs related to the manufacturing process and the rendering of services.

Product cost controling includes the following tools:

• product cost planing
• cost object controlling
• actual costing
•   information system

Product Cost Controlling can help:

1. plan your product cost accurately
2.  compare alternative cost estimates to optimize your business decisions
3. monitor your product cost in every stage of the manufacturing process
4. carry out detailed variance analysis on each order, product, and product group
5. calculate actual cost by period
6. put alternative values on your inventory for balance sheet purposes
7. answer recurring questions on the cost of goods manufactured by plant, product group, product, or order
8. answer one-of questions about the cost of goods manufactured