Introduction to

Financial Accounting

ERP Consulting Team

FI01.ppt - 1

Financial Accounting

Contents
>1. Organizational Structure in FI
> 2. Integration with other module
> 3. Master Data
> 4. Document
> 5. Account Receivable
> 6. Account Payable
> 7. Closing
> 8. Tax reporting
> 9. Differences between 3.x and 4.x
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FI01.ppt - 2

1. Organizational Structure in FI

Topics
> SAP R/3 Module Diagram
> Organizational Structure Chart
> Organizational Structure Description
> Company code Global data

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FI01.ppt - 3

SAP R/3 Module Diagram

SD

Open
Systems

FI

Sales &
Distribution

MM

CO

Materials
Mgmt.

Controlling

PP

Client / Server
Architecture

Enterprise
Information
System

Enterprise Business
Process Model

AM

R/3

Production
Planning

QM

Integrated
Business
Solutions

Financial
Accounting

Fixed Assets
Mgmt.

Client / Server
ABAP/4

Quality
Management PM
Plant Maintenance

HR

Human
Resources

IS

PS

WF

Integrated
Data Base

Project
System

Workflow

Globalization

Industry
Solutions

Parameter

ERP Consulting Team

FI01.ppt - 4

Organizational Structure Chart

Client
Chart of Acct AAAA Chart of Acct BBBB

Company code Company code

0001 0002 0003

Company code

Business Business Business area area

0001 0001 0001

area

Business Business
area area
0002 0002
Business
area
0003
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FI01.ppt - 5

Organizational Structure Description

Client - SAP system level DB .

Company Code -
R/3 system

Group Company - ,
company

Business Area -
.

Functional Area - FI ( ,
, , , )

Business place - . Plant, Tax office

(From V4.5). Tax.Jcode

Section code - (From V4.5)

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FI01.ppt - 6

Company code Global data

Company code

Global parameters

0001

SAP AG

Accounting Organization
Chart of accounts
Credit control area
Fiscal year variant
Company code is productive . . . . .

Processing parameters

Business area balance sheets

Max. exchange rate deviation
Propose fiscal year. . . .

Address Additional details

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FI01.ppt - 7

2. Integration with other module

Topics
-
-
-
-
-
- Integration with FI

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FI01.ppt - 8

2
1

or

WAREHOUSE

2
1

( )

( )

( )

( )

( )

/ /
/ /...

ERP Consulting Team

FI01.ppt - 9

WAREHOUSE

( )

ERP Consulting Team

FI01.ppt - 10

( )

( )

( )

, ,
, ,
,

Cash mgmt / forecast

Delivery date + payment terms
Historical payment behavior
Updated

Cash mgmt position

Payment settlement by value
date agreed or forecasted
By value date on bank acct
ERP Consulting Team

FI01.ppt - 11

WAREHOUSE

( )

( )

ERP Consulting Team

FI01.ppt - 12

/
+
Historical payment behavior

Payment settlement by value

date agreed or forecasted
By value date on bank acct

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FI01.ppt - 13

Integration with FI

Purchase Order
Goods Receipt
Invoice verification
Goods Issue
......
Backflush

GR document
Invoice doc.

Delivery
Billing

1000

50000

Goods Receipt
Sales Order

1000

1000

50000

55000

1000

50000

55000

50000

Billing

Customer
55000

Vendor
1000

ERP Consulting Team

FI01.ppt - 14

3. Master Data

Topics
> Accounting Data
> Master Data
> General Ledger and sub-ledgers
> Bank Data

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FI01.ppt - 15

Accounting Data
Configuration Data

Configuration
Master Data

G/L Accounts

Account type "S

Sample accounts

Customers

Account type "D"

Vendors

Account type "K"

Banks

Transaction Data

Documents

ERP Consulting Team

FI01.ppt - 16

Master Data
Master Data
create, change, display, block/unblock, mark for deletion, display changes

in Company Code

Master Rec.

centrally

in Chart of Accts

Changes

in Client
in Company Code

Master Rec.

centrally

Customers
Vendors

G/L Accts

Changes
ERP Consulting Team

FI01.ppt - 17

G/L Account Master Records

Client

Chart of accts
A

G/L Acct Phila.Natl.Bank

Bal.sheet acct

Account group

FIN.

Chart of accts
B

Company Codes

0001
Currency

0003
USD

Line item
Display

Currency

CAD

Line item
X

Display

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FI01.ppt - 18

Customer/Vendor Master Record

General data

Client

Air Conditioners Inc.

Chicago
60609

Bank details
USA 500 500 10 123456

Company codes
CC 0001

Company Code data

Recon.acct
Pmnt terms
Sort line items

nnnnnn
ZB01
001

CC 0003

Company code data

Recon.acct
Pmnt terms
Sort line items

nnnnnn
ZB02
002
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FI01.ppt - 19

Customer Master Record

General Data
- Address
- Communication
- Control data
- Payment transactions

Account number
Company code
Account group

Company code data

- Account management
- Payment transactions
- Correspondence
- Insurance

Sales data
- Sales
- Shipping
- Billing
- Partner functions
ERP Consulting Team

FI01.ppt - 20

Vendor Master Record

General Data
- Address
- Control data
- Payment transactions
- Contact persons

Account number
Company code
Account group

Company code data

- Account management
- Payment transactions
- Correspondence
- Withholding tax

Purchasing Org.
- Purchasing data
- Partner functions

ERP Consulting Team

FI01.ppt - 21

General Ledger and Sub-Ledgers

General Ledger

Human Resources
(Payroll)

Inventory Valuation

Accounts Payable

Accounts Receivable

Assets Management

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FI01.ppt - 22

Reconciliation Account
Accounts Receivable/Accounts Payable
Customer 1

Customer 2

1.000

500

General
General Ledger
Ledger
Reconciliation Account
Domestic Receivables
1000
500

ERP Consulting Team

FI01.ppt - 23

Bank Data
Company code 0001
House Bank
House Bank
2401
2402
2403
...

Acct-ID
01
02
03
...

Check1 acct
Check2 acct
Check3 acct
...

G/L Account
Bank Master
Account
11010100
Company Code 0001 Bank Key
Bank Name
House Bank
2403 Adress
...
Bank Account ID
03
...

Bank Account Data

Text ...
Bank acct
3931445100
Currency
___
Control Key
___
G/L Account 11010100
...
Corresponding Bank

Bank Country
KR
24
Hanbit
_____________
Control_____________
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FI01.ppt - 24

4. Document
Topics
> Document Principle
> Structure of a Document
> Document type
> Posting key
> Control of Document Screen Layout
> Taxes on Sales/Purchases
> Payment Terms
> Payment Methods
> Reference Documents
> Basic FI document posting
> Tolerance group
> Displaying change documents
> Reversing a document
> Other Special Features

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FI01.ppt - 25

Document Principle
1 Business
Transaction

1 Document

Invoice
to YourCo.
from
Flowers by Yvonne
3 Bouquetsred roses
Tax 10%

Document No. 1300001234

Expense 100
Tax
10
Cash
110

100
10
110

Date

1300001234
ERP Consulting Team

FI01.ppt - 26

Structure of a Document
Document Header
Document Date
Posting Date
Doc.Number

Doc. type
Currency

Line item 1
Posting Key
01
Account Customer (A/R)
Amount
1,100

Line item 2
Posting Key
50
Account Sales Revenue
Amount
1,000

Line item 3
Posting Key
Account Tax
Amount
100

50

Balance = 0
ERP Consulting Team

FI01.ppt - 27

Document type :

Number of Postings

Outgoing
invoice

Incoming
invoice

Bank

XXXXX XXXXXXXXX

DR

KR

Acct type

D, S

Doc. No.

1800000025

SB

ERP Consulting Team

Customers
FI01.ppt - 28

Posting Key :

Functions of the Posting Keys

Line Items

Detail view
1. S, D, K, A,

Account
Line Item 1
Amount
Tax Code

M?

/ PK
2. debit,
credit ?

Additional Details
Business Area
Cost Center
Text
...

The Posting Key has control

functions within the line items.
It controls:
1.
2.

3. Field Status ?

3.

on which type of account

the line item can be posted
to
if the item is posted as a
debit or credit
the field status of
additional details

SAP AG

ERP Consulting Team

FI01.ppt - 29

Control of Document Screen Layout

Field status
(Posting keys)
Sup. Mand.Opt.
Allocation

Text

...
Value Date

...

Field status
(G/L Account Master)
Sup. Mand. Opt.
Allocation

Text

...
Value Date

...

Sup Sup
Mand Error
Opt
Sup

Error
Mand
Mand

Opt

Mand

Sup

Link rules

Sup
Mand
Opt

Value Date ?
Allocation __
Text
__
ERP Consulting Team

FI01.ppt - 30

Taxes on Sales / Purchases

Post document

G/L Acct Master Record

Company Code Data

1. Line Item
2. Line Item

A1
A1

Tax Category

Tax Code

Automatic postings

Country USA
Tax code
Tax account
Output Tax

Output Tax
A1
A1
1101
10%

MWS 40/50

Automatic posting

50

1101 Output Tax

Amount >
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FI01.ppt - 31

Payment Terms1 :
Cust.acct: C65217
- Master Records -

Payment Data
Paym.Terms
ZB01
ZB01

Your Payment Terms

DR C65217

ZB00 net / net

01

ZB01 14Days
20Days
30Days

3%
1%
net

Invoice 1,100

ZB01
14 3%, 20 1%, 30

ZB02 15Days 1%
40Days net

Open Item Analysis

Incoming Payment

Outgoing Payment

Dunning Procedure
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FI01.ppt - 32

Payment Terms 2
Condition

Day Limit

Terms of payment

ZB01

__

3% cash discount within 14 days

2% cash discount within 30 days
Due net within 45 days

Default for baseline

No Default
X Document date
Posting date
Entry date
Block key
Pmnt method
Term Percent.rate
1.
3.0%
2.
2.0%
3.
45

date Baseline date calculation

Fixed day
__
Additional months
__
Default for payment block
A
__
No. of days / Fixed Day
14
__
__
30
__
__
__
__

Additional months

Explanation
------------------------------------------------------------------------------------3 % cash discount for payment within 14 days
2 % cash discount for payment within 30 days
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Due net within 45 days
FI01.ppt - 33

Payment Methods
Company code Company name Pmnt meth. Name (in language of country)
C
Check
0001
SAP Inc.
T
Bank transfer
W
Bill of exchange ...
...
...

- Payment method classification (Check will be created, Bill of exchange will be created)
- Required master record spec.(Address, Bank detail..)
- Posting spec(Document type for payment, Clearing document type, Specila GL ind..)
- Form pringout(Name of the printout program)
- Amount limit(Min,Max amout)
- Grouping of item (Single payment for marked item, Payment for due day.)
- Form data
- Foreign payments (Foreign currency allowed)
.
.
.

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FI01.ppt - 34

Reference Documents

- Actual Documents
- Sample Documents
( )

- Account Assignment Models

( User Field
)

- Recurring Documents
(
)
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FI01.ppt - 35

Basic FI Document Posting

Basic FI Documents

Entry Header
Detail

Prompt for
Next Line
Repeat

5 Enter Additional
Data

Enter Line Item

Detail

for each

Fast Entry

line item
required

Overview

Complete?

Simulate

Post

SAP AG

ERP Consulting Team

FI01.ppt - 36

Tolerance group
Maximum Amounts

Posting Authorizations

The maximum amounts are defined per company

code in Qtolerance groups. Q This is also where the
processing of payment differences is controlled.
Group
Company Code
Currency

Assigning Posting Authorizations

Posting Authorizations

Upper limits for posting procedures

Group
Company Code
Currency

Amount per document

Amount per open item account item
Cash discount per line item

Upper limits for posting procedures

Low limits

Permitted payment differences

Accounting clerks
...
R

Group
Company Code
Boss
Currency

SAP AG

Chief accountant

Upper limits for posting procedures

Higher limits

SAP AG

ERP Consulting Team

FI01.ppt - 37

Displaying Change Documents

Document
Company Code
Document Number
Fiscal Year
From date of change
Changed by

G/L Account
Chart of Accounts
G/L Account
From date of change
Changed by

List of Fields Changed

Field A
Field B
Field C
:

Date

Field New
Old
MMDDYYYY Field B Val. 3
Val. 2
MMDDYYYY Field B Val. 2
Val. 1
:

Customer / Vend.
Customer / Vend.
Company Code
Dunning Area
From date of change
Changed by

Changed on MMDDYYYY
at hh:mm:ss by user USER
Field B
from Val. 1
to
Val. 2
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FI01.ppt - 38

Reversing a Document : ,

Document to be Reversed

Doc.No.
13nnn
CC
0001
Posting Date_____
POST

Reverse Document

Doc.
13nnn
Doc.
13nnn
Doc.type
Doc.type DR
DR
01
01
50
50
50
50

Doc.
17mmm
Doc.
17mmm
Doc.type
Doc.type DZ
DZ

1,100
1,100

1,000
1,000- - Number Range 13

100
100 - External number
assignment

- Number Range 17
- Internal number

12
12
40
40
40
40

1,100
1,100

1,0001,000

100
100

assignment

- Reverse doc. = DZ

Doc.type
DR

Doc.type
DZ

type

1,100
1,100

1,000
1,000

ERP100
Consulting Team
100
FI01.ppt - 39

Other Special features

- Help Functions
- Fast Entry
- Parked Document
- Workflow
- Validation & Substitution
- Drill down
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FI01.ppt - 40

Help Functions
Document Entry
Document Date

Doc.Type

Company Code

Posting Date

Period

Currency Rate

Document Number

Translation Date

Editing Options
No foreign currency

Document Entry with Option

Document Date

Doc.Type

Posting Date

Period

Com.Code

Document No.
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FI01.ppt - 41

Fast Entry
Document Header
or Line Item

G/L
G/L Line
Line Item
Item

PK

Account

40

Cost 1

50

Cost 2
Cash

Amount TC
50
25
25
110

V1
V1
V1

Tax
10

Cost Center
Order
150895
250353
160447

ERP Consulting Team

FI01.ppt - 42

Parked Document / Workflow

Whole document
release procedure

RELEASE

COMPLETE
REJECT

Post
document
REJECT

RELEASE

PARK

Amount release
procedure

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Paket

FI01.ppt - 43

Validation and substitution

Validations
Input value

Validation

::

Check atSubstitutions
callup point
Special field

FALSE

TRUE
Substitution:

Error or Warning message

Continue

Cost center
4499

(space)
Check

Condition
fulfilled?

Replace

SAP AG

Special field
(New value)

SAP AG

ERP Consulting Team

FI01.ppt - 44

SAP Drill Down

: 4,000
: 1,000
: 5,500

Account Balance

Period Balance
1 400
2 600
1,000

Line Items

990103 100
990124 300
990205 200
990218 400

Document
: 990205
NO:101234
200

200

Line Item
NO:101234
Line Item1

200

ERP Consulting Team

FI01.ppt - 45

5. Account Receivable

Topics
> Customer/Vendor Clearing
> Tolerance Group
> Dunning
> Credit Management
> Account Analysis

ERP Consulting Team

FI01.ppt - 46

Customer / Vendor Clearing

1
2
3
4

Customer Invoice
10,000
Vendor Invoice
4,000
[ FI Document ]
Customer Payment
930
invoice
Clearing
from 1 to 31. Customer
AR 10,000 /
VAT

3% Cash Discount
2% Cash Discount
9,090
910 ( 10 %)

2. Vendor invoice
Expense 4,000 / AP 4,000

Customer
1 10,000
4

5,000

Vendor

3. Customer payment
AR
9,070 / AR 10,000
Bank 930

930

9,070

Cash Disc. Granted

4

150

4,000 2
4,000

4. Clearing of 2 and 3
4,000 * 0.02 = 80 => cash discount taken
9,070 - 4,000 = 5,070 * 0.03 = 150 => cash disc Granted
9,070 - 3,920 (4,000-80) - 150 = 5,000 ( AR)
-------------------------------------------------------------------------------------------AR
5,000
/ AR
9,070
AP
4,000
/ Cash disc taken
80
Cash disc Granted 150

Cash Disc. Taken

80 4
ERP Consulting Team

FI01.ppt - 47

Tolerance Groups
Payment Limits for Employees

Payment Limits for business partners

Upper Limits for posting procedures

Amount
Cash Discount

Details for clearing procedures

Grace period
Display Cash Discount Term

Allowed payment differences

Revenue
Adjustment to
Expense
Adjustment to

Permitted payment differences

Revenue
Adjustment to
Expense
Adjustment to
Residual items from paym.differences
Payment Term
Only grant partial cash discount

The smaller value is valid !

ERP Consulting Team

FI01.ppt - 48

Dunning
Master
record

Basic
parameters

Online
parameters

Doc.

- Dunning run Edit

Dunning
data

Dunning level
Dunning block

Test print

- Print -

Dunning letters

Dunning list

ERP Consulting Team

FI01.ppt - 49

Credit Management
1. Define Credit Data for Customer
Customer #1001
2. Create Sales Order
Sales Order #900001
Customer
#1001
Input Order Price 3,000 JPY
Credit Exceeded
Order Block

Credit limit
Credit limit used
Credit lisk

7,000 JPY
5,800 JPY
Medium

Credit limit avail

1,200 JPY

1,800 JPY

Send R/Mail for Credit manager

4. Create Delivery
Create Delivery for Sales Order

3. Check Mail Box & Blocked Order

Check Mail & Blocked Order
Credit Information System
Customer Contacted
Order Released

Reservation of Material
Shipping, Billing
Incoming Payments
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Sales & Distribution, Financial Accounting

Credit Management
FI01.ppt - 50

Account Analysis
Customer
Company code
Fiscal year

1234
0001
YYYY

Open
Open item
item
In arrears
155-

No.
1
1

5
25
35
45

1
1
1
1

AmountCash disc.
1,000 30
2,000 60

Overdue items
18,000
Payments on account
Due for payment
18,000
Open items not overdue
Total receivables
21,000

3,000 90
4,000120
5,000150
6,000180

0
*
3,000
*
ERP Consulting Team

FI01.ppt - 51

6 Account Payable

Topics
> Clearing
> Automatic Payment
>

ERP Consulting Team

FI01.ppt - 52

Clearing

- Automatic Payment
- Incoming/Outgoing Payment
- Automatic Clear
- Account Clear

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FI01.ppt - 53

Automatic Payment
Master
record

Payment
control

Current
parameters

Doc.

Proposal run
Proposal data

Edit
proposal

Payment run
Print program

Print program
Check
Bank transfer
Euro Check

Payment
advice

Payment
summary
ERP Consulting Team

FI01.ppt - 54

SD/MM/AA

Invoice
Invoice

Report
Report

Customer
Master

Vendor Master

( / )

Report
Report
Report

ERP Consulting Team

FI01.ppt - 55

7. Closing

- Opening and Closing posting periods

- Foreign Currency Valuation
- Business Area Breakdown
- GR/IR Clearing
- Balance carry forward
- Regrouping
- Balance sheet / P&L statement

ERP Consulting Team

FI01.ppt - 56

Opening and Closing Posting periods

Opening and closing Posting Periods

Open posting periods during the
fiscal year

Posting Periods

Open posting periods during the

closing procedure
open

12

02

11
10

03

09

04

08
07 06

13

01

05

14

15

16

Period Checks per Account Type

12

01
02
11
FI-Document
10
03

From Acct

To Acct

09 Document Header
04

08
05
Items
06
07
001 PK

S, D, K, A, or M

ZZZZZZZZZ

S, D, K, A, or M

ZZZZZZZZZ

002 PK
.
.
.
.

SAP AG

Account
Types

Posting Periods

.
.

General ledger accounts

SAP AG

ERP Consulting Team

FI01.ppt - 57

8 .Tax reporting

ERP Consulting Team

FI01.ppt - 58

-
-
-
-

ERP Consulting Team

FI01.ppt - 59

(Check list)

/

/ update

ERP Consulting Team

FI01.ppt - 60

-
-
-
-
- /

ERP Consulting Team

FI01.ppt - 61

-
-
-
-
-

ERP Consulting Team

FI01.ppt - 62

- /
- /
-
- / /
-

ERP Consulting Team

FI01.ppt - 63

9. Differences between V3.x and 4.x

- Alternative Payee
- Extended withholding tax
- Negative posting
- Sales and Purchasing tax FI (Plants abroad)
- Validation in Park document
- Enhancements to Posting and Clearing
- Authorization in FI
- Archive management
- Payment proposal blocking
- Changes of Korean Localization
- Definition of Sensitive fields (4.6)
- Display documents items in List format (4.6)
- Cash journal (4.6)
- Web based GUI (4.6)
- Automatic posting of payment difference
- Alternative payment currency and amount
.
.
.

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FI01.ppt - 64