Dora ppt1

SAP FICO

Topics covered in the Week

By G.DORASANAIAH

Introduction to SAP

Basic settings of FI

New G/L concepts

Document splitting

Tolerance Groups

SAP FICO

ERP Introduction

ERP Stands for Enterprise resource Planning. ERP is a way to integrate the data and processes of an organization into one single system.ERP system will have many components including hardware and software in order to achieve integration.

ERP systems use a unified database to store data for various functions

found throughout out the organizations.ERP solutions seek to streamline and integrate operations process and information flows in the company to synergies the resources of an organization namely men, material, money and machines through the information.

Introduction of ERP

Components of ERPTo Enable the Easy Handling of the system the ERP has been divided into the following Core Sub Systems.

Sales and Marketing

Material Scheduling

Material Requirement Planning

Capacity Requirement Planning

Bill of Material

Purchasing

Shop Floor Control

Accounts Payable/ receivable

Logistics

Asset Management

Financial Accounting

Ideal ERP Software Modules Versions

Manufacturing

Financials

Human Resources

Supply Chain Management

Customer Relationship Management

Data Warehouse

Manufacturing : Functions Include Engineering, Capacity, work flow management, quality control, bills of material, manufacturing process...Financials: Accounts Payable, Receivable, Fixed assets, General Ledgers, and cash management.......

Human Resources : Organization Management, Personal Administration, Time Management, Payrolls ......Supply Chain Management : Inventory, Supply chain planning, Supplier Scheduling, claim Processing, order entry, purchasing.........

Project: Costing, billing, activity management, time and expense, etc.

Customer Relation Ship Management : Sales, marketing, service, Commission,Call centre Support .......

Customer Relation Ship Management : Sales, marketing, service, Commission,Call centre Support .......

Major Features of ERP

ERP Facilitates company-wide integrated Information system covering all functional areas like manufacturing, selling and distribution, payables, inventory, accounts, Human resources, purchases .....ERP bridges the information GAP across the organization

ERP Allows automatic introduction of latest technologies like Electronicfunds transfer (EFT), Electronic data interchange (EDI), Internet, Intranet,Video Conferencing, E- commerce Etc....ERP Eliminates the most of the business problems like material shortage,productivity enhancements, customer service, cash management, inventory problems, quality problems......ERP not only address the current requirements of the company but alsoprovides the opportunity of continually improving and refining business processERP provides business intelligence tools like Decision Support Systems (DSS), Executive Information system (EIS), Reporting, Data Mining, and Early Warning Systems (robots) for enabling people to make better decisions and thus improvise their business processes.

Benefits of ERP

The Benefits accruing to any business enterprise on account of Implementing are unlimited, the below are some of the benefits achieved by implementing the ERP Packages.

Greater Accuracy of the information with detailed content, better presentation, fully satisfactory for the auditors

Improved cost control

Better monitoring and quicker response of queries

Enables quick response to change in business operations and market conditions

Helps to achieve competitive advantage by improving its business process

Improve supply –demand linkage with remote locations and branches in different countries.

Improves International operations by supporting a variety of tax structures, invoicing schemes, multiple currencies, multiple period recording and languages

Provides a unified Data base usable by all applications improves information accesses and management throughout Enterprise

Market Suppliers of ERP

BAAN

CODA

D&B

IBM

JD EDWARDS

MARCARN

ORACLE

PEOPLE SOFT

LATINUM

RAMCO

SAP

SMI

SOFTWARE 2000

SAP EvaluationIn 1972 Dietmar hopp, Hans- Werner Hector, Hasso Plattner, Klaus Tschira, and claus wellenreuther has launched company called System Applications and products. The original name SAP was German Systeme, Anwendugen, Produkte, Currently 12 million users work each day with SAP solutions. There are 121,000 installations world wide, more than 1500 SAP partners, Over 25 industry Specific business solutions, and more than 41,200 customers in 120 countries SAP is the world’s third largest independent software vendor.

SAP are categorized into 3 core functional areas:Logistics Financial

Sales and Distribution (SD)Material Management (MM)Ware house Management (WM)Production Planning (PP)General Logistics (LO)Quality Management (QM)

Financial :Financial Accounting (FI)Costing (CO)Enterprise Controlling (EC)Investment Management (IM)Treasury (TR)

Human Resources

Human Resources :Organizational ManagementPersonal AdministrationTime ManagementPay rolls

SAP R/3 Architecture

GUI(Graphical User Interface)

Presentation Server

Application Server

Data Base Server

R/3 Means Real time 3 tier structure

When ever a user raises a request in the Presentation server (GUI) for any accesses the request goes to Application server for authentication and validates the data from the data base server and provides the accesses to the user.

When ever a user saves a data the data is saved on Data base server for users authorization and access.

Data Base server always uses ABAP4 Language ( Advanced Business Application Program)

System Landscape of SAP

Sand Box

IDES

Development Client

or Golden Master

Testing Client

Quality Client

Production

Client

ID No 100 to 199 200 to 299 300 to 399 400 to 499

Operational Clients

800

Mandate Clients

IDES : Internet Development Evaluation system

Sand box is a online version which is updated when ever a new customization is done in the SAP

Id no’s given for the clients are standard and this may vary in the Real time scenario as per the client requirements.

Client

Definition :

A commercially, organizationally, and technically self-contained unit within an SAP System. Clients have their own master records and set of tables.

The definition of the client organizational unit is obligatory.

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.

Enterprise Structure Configuration

Define Company :

The smallest organizational unit for which individual financial statements are created according to the relevant legal requirements. A company can include one or more company codes.

Path: SPRO – Enterprise Structure – Definition – Financial Accounting – Define Company.

Transaction Code : OX15

Data Base Table : V_T880

By using the above path or transaction code we can define company.Under a company we have more than one company codes.

Define Company Code:

Smallest organizational unit of external accounting for which a complete, self-contained set of accounts can be created. This includes the entry of all transactions that must be posted and the creation of all items for legal individual financial statements, such as the balance sheet and the profit and loss statement.

Path: SPRO – Enterprise Structure – Definition – Financial Accounting – Edit,Copy,Delete,Check Company Code.

Transaction Code : OX02 Data Base Table :: V_T880

By using the above path or transaction code we can define company code. Then this company code is assigned to a company.

Define Business Area:

Organizational unit of external accounting that corresponds to a specific business segment or area of responsibility in a company. Movements in value entered in Financial Accounting are assigned to business areas.

Path : SPRO – Enterprise Structure – Definition – Financial Accounting – Define Business Area.

Transaction Code : OX02

Data Base Table : TGSB, TGSBT

By using the above path we can define business area

Define Functional Area :

Functional Area is a organizational unit in accounting that classifies the expenses of an organization by functions.

The Functional area in SAP is use to create P&L  A/C in Financial Accounting using cost of sales accounting and used to analyze the cost of sales accounting.

Path : SPRO – SAP Reference IMG – Financial Accounting – Define Functional Area

Transaction Code : OKBD

Data Base Table : TFKB, TFKBT

By using the above path or transaction code we can define functional area.

Maintain FM Area : After define FM area we have to maintain this area.

Path : SPRO – Enterprise Structure – Definition – Financial Accounting – Maintain FM Area

Transaction Code : OKBD

Data Base Table : FM01, FM01T

Define Segment :

Division of a company for which you can create financial statements for external reporting.

The characteristic Segment is only released in combination with the characteristic Profit Center. If no segment is specified manually during posting (only possible fortransactions in Financial Accounting), the segment is determined from the master record of the profit center. This profit center can also be assigned manually or derived. If you want to apply different rules to derive the segment during posting, you can define your own rules for this.

Path : SPRO – Enterprise Structure – Definition – Financial Accounting – Define Segment

Data Base Table : FAGL_SEGM, FAGL_SEGMT

By using the above path we can define segment.

Assign Company Code to Company :

After define a company code then we should assign to a company

Path : SPRO – Enterprise Structure – Assignment – Financial Accounting – Assign company code to company

Transaction Code : OX16

Data Base Table : T001

By using the above path or transaction code we can assign a company code to a company.

Assign Company Code to Financial Management Area :

After define FM area we can assigned to a company code.

Path : SPRO – Enterprise Structure – Assignment – Financial Accounting – Assign Company code to Financial Management Area

Transaction Code : OF18

Data Base Table: T001

By using the above path or transaction code we can assigned FM area to a company code.

Maintain Fiscal Year Variant (Maintained Shortened Fisc.Year) :

A fiscal year usually has 12 posting periods. In General Ledger Accounting, you can define up to four special periods. If you do not need 12 posting periods, you can use the posting periods that are not required as special periods. If you use these additional closing periods, you must specify the number you require in the field No. special periods. When defining the fiscal year variants. You cannot exceed a maximum of 16 periods.

Path : SPRO - Financial Accounting (New) – Financial Accounting Global Settings (New) – Ledgers – Fiscal Year and Posting Period – Maintain Fiscal Year Variant.

Transaction Code : OB29

Data Base Table : T009By using the above path or transaction code we can maintain fiscal year varient.

Assign Fiscal Year Variant to Company Code :

After define fiscal Year variant we must assigned to a company code.

Path : SPRO – Financial Accounting (New) – Financial Accounting Global Settings(New) – Ledgers – Fiscal Year and Posting Periods – Assign Company Code to Fiscal Year Variant.

Transaction Code : OB37

Data Base Table : T001, T882By using the above path or transaction code we can assigned fiscal year to a company code.

Posting Periods

The posting period consists of a month and a fiscal year. These are both displayed in the document overview. The posting period determined is entered in the document and the transaction figures for this period are updated.Define Variant for Open Posting Period :

Path : SPRO – Financial Accounting (New) – Financial Accounting Global Settings (New) – Ledgers –Fiscal Year and Posting Periods – Posting Periods –Define variant for open posting period

Transaction Code :OBBO

Data Base Table : T010O,T010By using the above path we can define posting period varients.

Assign Posting period Variants to Company Code :

After define posting period variant we should assigned to a company code.

Path : SPRO – Financial Accounting (New) – Financial Accounting Global Settings (New) – Ledgers –Fiscal Year and Posting Periods – Posting Periods – Assign Variants to Company Code.

Transaction Code : OBBP

Data Base Table : T001

By using the above path or transaction code we can assigned posting period variant to a company code.

Open and Closing Posting Period :

Usually, only the current posting period is open for posting, all other posting periods are closed. At the end of this posting period, the period is closed, and the next posting period is opened. Special periods can be open for closing postings during the period-end closing. You have the following options for opening and closing posting periods.

Path : SPRO – Financial Accounting (New) – Financial Accounting Global Settings (New) – Ledgers – Fiscal Year and Posting Period – Posting Period – Open and Close Posting Period.

Transaction Code: OB52

Data Base Table : T001B

By using the above path or transaction code we can define Open and Closing posting periods.

Define Chart of Accounts :

The chart of accounts contains the account number, account name, and the information that controls how an account functions and how a G/L account is created in a company code. You have to assign a chart of accounts to each company code. This chart of accounts is the operating chart of accounts and is used for the daily postings in this company code.

Path : SPRO – Financial Accounting (New) – General Ledger Accounting (New) – Master Data – G/L Accounts – Preparations – Edit Chart of Accounts List.

Transaction code : OB13Data Base Table : T004,T004T

By using the above path or transaction code we define Chart of accounts.

Assign Chart of accounts to a company code :

After define a chart of accounts we should assigned to a company code.

Path : SPRO – Financial Accounting (New) – General Ledger Accounting (New) – Master Data – G/L Accounts – Preparations – Assign chart of accounts to a company code.

Transaction Code :OB62

Data Base Table : T001

By using the above path or transaction code we can assign chart of accounts to a company code.

Define Account Group :

An object that attributes that determine the creation of master records. The account group determines:

•The data that is relevant for the master record

•A number range from which numbers are selected for the master records

•An account group must be assigned to each master record.

Path : SPRO – Financial Accounting – General Ledger Accounting– Master Data – G/L Accounts – Preparations – Define Account Group.

Transaction Code : OBD4

By using the above path or transaction code we can define account groups.

Define field status variant

• In this activity we can define and edit field status variants and groups. We group several field status groups together in one field status variant. We assign the field status variants to a company code in the activity.

• We must define a field status group in the company code-specific area of each G/L account.

• The field status group determines which fields are ready for input, which are required entry fields, and which are hidden during document entry.

Path : SPRO-Financial accounting-Financial accounting global settings-Document-Line item-Controls-Define field status variant.

Transaction code :OBC4

By using the above path or transaction code we can define field status variant

Assign field status varient to company code

After define field status variant we should assign it to a company code.

Path : SPRO-Financial accounting-Financial accounting global settings-Document-Line item-Controls-Define field status variant.Transaction code :OBC5

By using the above path or transaction code we can assigned field status variant to a company code

Define tolerance group for G/L accounts and employees: We can define tolerance group for G/L account and Employee and assign to users.

Tolerance group for G/L accounts:

For G/L account clearing tolerance groups define the limits within which differences are accepted and automatically posted to pre defined accounts.

Transaction code: OBA0

Tolerance group for Employees:

The maximum amount for which an employee is permitted to post a document

The maximum line item amount an employee is permitted to enter in a customer, vendor or general ledger account

The percentage amount an employee can enter in a line item

The maximum acceptable payment difference.

Transaction code:OBA4

Why use the New GL?

Business Requirement Reporting as per different

GAAP Unified management & legal

Reporting Reporting as per cost of sales accounting. Financial statement below

company code level

New GL functionality Concept of multiple ledgers-

Leading & Nonleading ledger. Profit Centre integrated with

GL Document split functionality Profit Centre integrated with

GL

Basic Settings in New G/L

Define ledgers for general ledger accounting

Define and activate non leading ledger

Define currencies of leading ledger

Assign scenarios and customer fields to ledgers

Activate cost of sales accounting

Define ledger group

G.DORASANAIAH

Thank You