FINANCIAL ACCOUNTING

OVERVIEW
 CONTENT

• Chapter 01 - Enterprise structure

• Chapter 02 - General Ledger
• Chapter 03 - Accounts Payable
• Chapter 04 - Accounts Receivable
• Chapter 05 - Asset Accounting
• Chapter 06 - Cash Management
• Chapter 07 - Miscellaneous
Enterprise structure
Organizational Structures in R/3

Operating Concern CO

Controlling Area CO

Sales Organizations SD Purchasing Organizations MM

Company Codes FI

Valuation Areas MM
Plants
MM

Storage Locations/ Batch/

MM
Special Stocks
Legal entity : company code
Organizational Structures in R/3
Overview Organization Entities in Finance

Client

Chart of
Accounts ONTX

Deprec Area Deprec Area Deprec Area Deprec Area

Belg Nede De TR

CoCd CoCd CoCd CoCd CoCd

0100 0200 0300 0310 0800
General Ledger
 General Ledger

Master Data
–G/L Accounts

Transaction Data
–Document types : header + line items
–Postings

Closing procedures
–Monthly
–Yearly

Reporting
–Group
–Legal
Master data : Chart of accounts concept
 Master data : Chart of accounts concept

Client
G/L Account 1730000 bank
Bal. sheet account X
Account group Fin.
.
Chart of .
G/L Account data Accounts
ONTX
Company 0800Company 0
CurrencyYTL CurrencyEUR
Line item Line item
Company Company display x display x
Add. G/L
Account data
0100 0800
Master data : Chart of accounts concept
 Master data : take over - mapping

Approach
• Map local accounts to operational accounts
• Identify additional local accounts
• Translate used accounts in Turkish (short/long)
• Copy accounts to company code
• Load alternative (local) chart of accounts
• Timing : finished at end of blueprint phase
 Transaction Data : document types

One Business Transaction = One Document

BT BT BT
Transaction Data : document types
Structure of a document
Header Data

Line item Data

 Transaction Data : document types

Document Header

Document header
Posting date
Line item 1 Document number
Line item 2 Document type
Currency
Line item 3
...
Balance = 0
 Transaction Data : document types

Document type = journal

Outgoing Incoming Bank

invoice invoice

e.g. RX e.g. KR e.g. SB

 Transaction Data : document types

Number Ranges

Internal
SAP Documents
Assignment
Number
Master Data Range
External
Assignment
 Transaction Data : document types

Document Line Item

Document header
Posting keys
Line item 1 Special G/L transactions
Automatic Line items
Line item 2
Additional Account
Line item 3
Additional Assignment

Balance = 0
 Transaction Data : document types

Posting keys
DEBITS CREDITS
PK 01 Invoice PK 11 Credit Memo
CUSTOMERS: 02 Reverse 12 Reverse
Credit Memo Invoice
05 Outgoing 15 Incoming
Payment
PK 21 Credit Memo Payment
PK 31 Invoice
VENDORS: 22 Reverse 32 Reverse
Invoice Credit Memo
25 Outgoing 35 Incoming
G/L a/c: Payment
PK 40 Debit entry Payment
PK 50 Debit entry

60 ... 70 ...
80 ... 90 ...
 Transaction Data : document postings

Posting periods : central maintenance

16
 Transaction Data : document postings

Taxes on Sales/purchases

Tax Codes are country specific

• Tax base for tax calculation
• All required tax rates defined
• Determination of due dates for tax payment
• Tax calculation procedures
• Tax base for cash discount
• Dependent taxes as surcharges or deductions
• Division into deductible and non-deductible taxes
 Month-end closing

General
• Balance sheet preparations
• Block postings to previous month (consollidation dpt.)
• Advance return for tax on sales & purchases
• Balance sheet & P+L statement for the month
– Financial statement versions
• Document and reconcile Posting Data
• Create balance audit trail
• …
 Month-end closing

Ontex closing & reporting

• Integrity checks
• Splitting up turnover by product group & country (MCSI)
• Upload to Frango (ZFR10)
• VAT declaration
• Stock list (MRN9)
• Revaluation (F.05)
• Splitting wages & salaries (for consolidation purposes)
• Wages upload
 Year-end closing
• Maintain posting periods
• Balance lists for previous fiscal year
• Account balances carried forward (Turkish specific)
• Reconcile balances
• Balance sheet preparations
• Block postings to old fiscal year
• Create balance sheet & P+L statements
• Transaction summaries (compact journal + balance lists)
• Balance audit trail
Accounts Payable
 Accounts payable

Master Data
–General, legal, purchasing view

Transaction Data
–Logistics Invoice Verification
–Payment program

Closing procedures
–Regrouping

Reporting
 Master data : vendors

Vendor master Record

General data:
Weyerhaeuser (900893)
Washington
Bank detail:
BE 685-0497019-59
Client

Company 0100 Company 0800

Reconn.acct 44000000 Reconn.acct 44000000
Pmnt terms ZB01 Pmnt terms ZB02
Sort line Sort line
Company Company items 001 items 002
0100 0800
 Master data : vendors

Intercompany
• In each company code, others entity of the Group Ontex are identified as a
customer account and a vendor account.

• In consequence, all internal trade will be done in relation with those numbers.

• Those accounts contain specific trading partner number.

• All intercompany vendors start with V (e.g. V3400 = Astel)*

* Cfr. Customers – but start with I (e.g. I3400 = Astel)

 Transaction data : LIV

Logistics Invoice Verification

Purchase MIRO
order

Goods
receipt

Invoice
receipt
Transaction data : LIV
 Transaction data : payment program

Payment Program

Bank
Cheque
Customer/ Transfer
Vendor
Master
Records

Basic Payment
payment proposal Proposal Print Print
control data run data Pay- data program
ment
2 run 5
Input
parameters 4
1

Edit Summary Pay

Report Advice
Documents 3
 Closing procedures

• Intercompany reconciliation (F.2E)

• GR/IR clearing : F.13
• GR/IR clearing (incl. tolerances) : MR11
• GR/IR split : F.19
• Regrouping : investment invoices (F101)
• Clear down payments (F-44)
• Clear customers/Vendors (e.g. rebate agreements)
• Balance carry forward
 Reporting
Purchasing journal (ZFPJ)
Accounts Receivable
 Accounts receivables
Master Data
–General, legal, sales organisation view
–Credit management (FD32)

Transaction Data
–Billing
–Noted item (test)
–Dunning

Closing procedures
–Doubtful debtors
–Revaluation

Reporting
–Aging balance
–Sales journal
–Credit management (f.31)
 Master data : customers

Customer master Record

General data:
Lidl België (207)
Gent

Client

Company 0100 Company 0800

Recon.acct 40000000 Recon.acct 40000000
Pmnt terms A114 Pmnt terms A214
Sort line Sort line
Company Company items 002 items 001
0100 0800
 Transaction data : billing

All customer invoices/credit notes are posted via SD – no manual (financial)

invoices possible !
Transaction data : noted items
 Transaction data :dunning

Customer
Dunning
Vendor
notices
Master
Records

Dunning
Basic dunning
Proposed print
parameters/data Dunning
dunning &
program
2 notices update of
Input records
parameters 4
1

Edit
Documents proposal
3
 Transaction data :dunning

Dunning Configuration Program

• Dunning procedure
– Dunning interval
– No. of dunning levels
– No. of grace days
• Dunning levels
• Dunning notice sort fields
• Dunning blocks
• Dunning texts
 Closing procedures

Transfer
doubtful
debtors
(F103) to
other balance
sheet
reconciliation
account
Reporting

Aging
balance
Reporting

Sales
Journal
Asset Management
 Asset Management

Master Data
–Master data, default values & asset explorer

Transaction Data
–Acquisition, transfer, retirement
–Assets under construction

Closing procedures
–Periodic posting
–Depreciation run

Reporting
–Depreciation table/year
 Master data : assets

•Divided in different asset classes :

–Per class possibility to assign to different accounts
–Specific screen layouts
–Default values for depreciation areas
•Per country a specific chart of depreciation
•Different valuation per depreciation area – possibility to have different APC value,
depreciation start date, useful life :
–Area 01- Book depreciation
–Area 02- Tax depreciation
–Area 40- IAS (group depreciation)
•Possibility to link multiple sub-assets to a main number
•Integration with CO via cost center or internal order
 Transaction data

•Acquisition :
–Via MM – purchase order
–Via FI – from external vendor/affiliated company
•Transfer :
–From one asset to another without losing details
•Retirement :
–Sell with/without gain
–scrapping
•Assets under contruction :
–Gather all costs related : spare parts used, overhead, new parts bought,…
–Follow up budget (if applicable)
–Capitalize final asset(s) via settlement
 Closing procedure
Periodic posting (ASKBN)
Closing procedure
Depreciation run
 Reporting
Depreciation details
 Reporting
Link with balance sheet
Cash Management
 SAP is an
integrated package
 Integration in the SAP System
Sales and Distribution Financial Accounting
SD FI
Materials
Controlling
Management MM CO
Production Planning PP R/3 for AM Assets Management

Client/Server
Quality Management PS Project System
QM ABAP/4
PM WF
Plant Maintenance Work Flow
HR IS
Human Resources Industry Solutions

R/3 4.7 : Version of the SAP system

Client/Server : Architecture used in SAP
ABAP/4 : SAP’s programming language
 Basic Components of the R/3 System…
Long-term Capital Resources Short-term
CO
FI AM
Capital Investments Expense costs Cash

Financial Accounting:
•General Ledger
FI •Accounts Receivable
•Accounts Payable

Controlling:
CO •Cost Center Accounting
•Profitability Analysis
•Product Costing
AM Assets Management
•Control & Identification of property, plant and equipment
 Basic Components of the R/3 System…
Logistics Process

Procurement Production Sales

Purchase Orders Processes Orders
Supplier  Materials
 Services
 Products
 Services Customer
MM PP SD

Material Resources

Materials Management Sales & Distribution

•Receiving •Order Management
MM •Inventory Management SD •Quotations
•Procurement (purchasing) •Pricing
•Vendor evaluation •Credit Management
Production Planning •Delivery/ Invoicing
•Forecasting
PP
•Master Production Schedule
•Materials Requirements Planning (MRP)
•Production Reporting
•Production Orders
 SAP is an integrated tool
Sales Order Material Availability Check
Customer Shipment
Sales & Transfer of Requirements

Credit Limit
Distribution Goods Issue to SO

Invoice
Sales Forecast / Plan

Production Order
Production Production Order Receipt
Materials
Planning Management
Production Cost Accounting Document

Invoice Receipt

Goods Receipt
Accounts
Finance & Payable
Vendor
Receivable Accounts / Cash Receipt Controlling
 Integration Points SD, FI-AR, FI-GL, CO-PA

Sales order request (1) Credit Limit check (2,3)

SD Customer DB Receive invoice

payment (8)
Send goods and AR
Post receivable (5)
Send Invoice (4)
Release to
Accounting Reduce receivable
Post Sales to revenue account; offset
and offset
to G/L account receivable post
cash account (9’)
Sales cost if.; reduction in e.g. inventory
product, quantity, offset logs (6)
revenue, costs (7)

CO-PA G/L
 Integration Points MM, FI-AP, CO, FI-GL
Purchase
order Production
send to order request
Goods receipt vendor ( 3 ) (internal from SD) (
from vendor ( 4 ) 1) Vendor DB

MM/PP Post payable to vendor account ( 7 ) AP

Invoice receipt Invoice payment
against to vendor ( 9 )
purchase order Post payable
(6 ) to
G/L account/
offset GR-/
IR account ( 8 Reduce payable in
) G/L reconciliation
account/ offset cash
Open item account ( 11 )
cost posted
to
CO-orders or Post expense on cost center
Cost Center ( or production order (14 )
CO
2) G/L

Settle order (that can be capitalized) to work

in progress account/ offset to expense account (15 )
Questions