A ProjectOnCreation of a Virtual Company Using SAP Tool
Prepared ByMr. Sritam Kumar DashEnrollment No: 13DM036Batch:
2013-15, Sec-B
Under the Guidance OfProf. Babuli SahuAs a Part of ERC
Course
Institute of Management & Information ScienceBhubaneswar
Contents1) Introduction to SAP32) Merits and Demerits of ERP33)
SAP architecture44) SAP software45) Creation of Company56) Company
Code67) Chart of account68) Account Group79) Retained Earnings
Account810) Field status variant811) Assign company code to field
status variant912) New General Ledger account913) Check the list of
account1014) Company wise detail1115) Define Business Area1116)
Fiscal Year1217) Assign Company code to Fiscal year1318) Posting
Period1419) Open and close posting period1420) Assign company code
to posting period variant1521) Document type and Number Range1522)
Tolerance Group1723) Assign tolerance group to company1824) Global
Parameter1825) Financial statement version1926) Document
splitting2127) Document/ Voucher Entry2128) Reports2229) Conclusion
& Limits23
Introduction to SAPSAP ERPisenterprise resource planningsoftware
developed by the German companySAP SE. SAP ERP incorporates the key
business functions of an organization. The latest version (SAP ERP
6.0) was made available in 2006. The most recent Enhancement
Package (EHP7) for SAP ERP 6.0 was released in 2013.SAP ERP was
built from modules comprising the formerSAP R/3. SAP R/3 through
version 4.6c consisted of various applications on top of SAP Basis,
SAP's set ofmiddle ware programs and tools. When SAP R/3 Enterprise
was launched in 2002, all applications were built on top of theSAP
Web Application Server. Extension sets were used to deliver new
features and keep the core as stable as possible. The Web
Application Server contained all the capabilities of SAP Basis.As a
result of marketing changes and changes in the industry, new
versions of SAP have been released. The first edition of my SAP ERP
was launched in 2003 and bundled previously separate products,
including SAP R/3 Enterprise, SAP Strategic Enterprise Management
(SEM) and extension sets. The SAP Web Application Server was
wrapped into Net Weaver, which was also introduced in 2003.A
complete architecture change took place with the introduction ofmy
SAPERP edition 2004. R/3 Enterprise was replaced with the
introduction of ERP Central Component (SAP ECC). The SAP Business
Warehouse, SAP Strategic Enterprise Management and Internet
Transaction Server were also merged into SAP ECC, allowing users to
run them under one instance. Architectural changes were also made
to support an enterprise service architecture to transition
customers to a services-oriented architecture.SAP HANAwhich is a
combination ofIn-memorysoftware and hardware can improve data
processing at extremely high speeds.
Merits and Demerits of ERP
Advantages Allows easier global integration (barriers of
currency exchange rates, language, and culture can be bridged
automatically) Updates only need to be done once to be implemented
company-wide Provides real-time information, reducing the
possibility of redundancy errors May create a more efficient work
environment for employees Vendors have past knowledge and expertise
on how to best build and implement a system User interface is
completely customizable allowing end users to dictate the
operational structure of the product.
Disadvantages Locked into relationship by contract and
manageability with vendor - a contract can hold a company to the
vendor until it expires and it can be unprofitable to switch
vendors if switching costsare too high Inflexibility - vendor
packages may not fit a company's business model well and
customization can be expensive Return on Investmentmay take too
long to be profitable Implementations have a risk of project
failure
SAP Architecture
SAP Recent SoftwareSAP software developmentSAP 4.6c->SAP
4.7->SAP ECC5.0->SAP ECC6.0
Creation of CompanyCompany is nothing but a client to whom we
are going to implement in SAP. It represents a corporate group. It
is the highest organization unit in enterprise structure. Company
name APS technology.Path- SPRO-SAP reference IMG-Enterprise
structure-Definition-Financial Accounting-Define Company-New
entries
Company CodeIt is an independent organization unit that
represents subsidiary of company. One company can have many company
code.Path- SPRO-SAP reference IMG-Definition- Financial accounting-
Edit, copy, define and check company code- Edit company code data-
New entries. Company code is C032.
Chart of Account (COA)It is list of GL accounts master records
that are used by the organization. A chart of account must be
assigned to each company code.Path-Chart of account- Name- Maintain
language- GL account- Controlling Integer- Consolidation- Starts.
COA is C032.
Then we have to assign the respected company code to Chart of
account.Account GroupIt is used for consolidation purpose. We have
to define all kind of GL accounts like asset, liability, Income and
expenditure with different number ranges.Path- SPRO-SAP reference
IMG- Financial accounting- General ledger accounting- G/L accounts-
Master data- Preparation- Data account group- New entries.
Retained Earnings AccountIt is used for carry forward the
balance. There may be more than one retained earning account but
one is mandatory.Path- SPRO- SAP reference IMG- Financial
accounting- General ledger accounting- G/L accounts- master data-
preparation- Define retained earning account- Enter chart of
account- C032.
Field Status VariantIt comes true fields or the documents posted
to a G/L account. Field status group is mandatory. To specify field
status or suppress design required. Field status variant is
pr01.Path- SPRO- SAP reference IMG- Financial accounting- General
ledger account- Business transaction- G/L account- Make and check
document setting- Define field status variant- Enter field status
variant key.
To view the list selected in field status variant double click
on field status group.Assign Company Code to Field Status VariantWe
have to assign the company code to created field status
variant.Path- SPRO- SAP reference IMG- Financial accounting- G/L
accounts- Business transaction- G/L account position- Business
transaction- G/L account posting- master document setting- Assign
company code.
New General Ledger AccountWe have to enter G/L account specific
to the series in general chart account. For each and every series
of G/L account. Code s FS00 Give company code. Select create
button. Select account group in group chart account. Select the
account comes under P/L statement and balance sheet. OB-GLACC12- To
display ledger.
Check the List of AccountTransaction code- S_ALR_87012332
Company wise DetailTo show the details of entry in GL account.
Transaction code OB_GLACC12- company code
Define Business AreaTo specify the business related area of the
companySPRO- SAP reference IMG- Enterprise structure- Definition-
Financial Accounting- Defne Business area.
Fiscal YearIt is the time period which is used to prepare the
different financial statement of the company. Its also called as
financial year/ Budget year. It can as per the calendar year or
companys own business rule.It consists of 12 required posting
period and 4 special period for audit or tax purpose depending upon
the quarterly or semiannually entry. In India Fiscal year is from
1st of April to 31st March. For the fiscal year FY15 structure is
as follows. If we consider todays date 25th oct 2014 the structure
isMONTHSM.NODAYSPERIODS IN SAPYEAR SHIFT
JAN 13110-1
FEB 22811-1
MAR33112-1
APR43010
MAY53120
JUN63030
JUL73140
AUG83150
SEP93060
OCT103170
NOV113080
DEC123190
Path- SPRO- SAP reference IMG- Financial Accounting- Financial
Accounting Global setting- Fiscal year variant- New Entries. Code
generated ET.
Assign Company Code to Fiscal YearWe have to assign company code
C032 to the created fiscal year.Path- SPRO- SAP reference IMG-
Financial accounting- Financial accounting Global setting- Fiscal
Year- Assign company code to fiscal year.
Posting PeriodsIt is used to define which periods are to be
define for posting purposePath- SPRO- SAP reference IMG- Financial
accounting- Financial accounting Global setting- Document- Posting
periods. Posting period variant is APS.
Open and Close Periods in Posting PeriodsPath- SPRO- SAP
reference IMG- Financial accounting- Financial accounting Global
setting- Documents- Posting periods- Open and close posting
periods- New entries.
Assign Company Code to posting period VariantsWe have to assign
the posting period variant APS to our company code C032.Path- SPRO-
SAP reference IMG- Financial accounting- Financial accounting
Global setting- Documents- Posting periods- Assign variants to
company code-position- Give details.
Document Type and Number RangeDocument range is defined as
specific intervals with in which documents can be created. It
depends upon the company code and valid for fiscal year.Path- SPRO-
SAP reference IMG- Financial accounting- General ledger accounting-
Business transaction- G/L account posting- make and check document
setting- Define document type- new entries. Document type is
1P.
Number Range
Tolerance GroupTolerance group should be created for G/L
accountCode is OBA0Path- SPRO- SAP reference IMG- General Ledger
accounting- Business transaction- Open item clearing- clearing
difference- Define tolerance group for G/L accounts.
Assign Tolerance Group to Company
Global ParameterPath- SPRO- SAP reference IMG- Financial
accounting- Company Code- Enter Global Parameter.
Financial Statement VersionHierarchical arrangement of G/L
account. It is used to create financial statements, to run variable
report, as basic plan to general ledger accounting.Path- SPRO- SAP
reference IMG- Financial accounting- General ledger account-
Business transaction- Closing period- Documents- Define financial
statement version- New entries.
Documents SplittingCode is FB50Path- SPRO- SAP reference IMG- FA
new- G/L account New- Business transaction- Document splitting-
Classify G/L account.
Documents/ Voucher EntryHere we will do all type of entry before
report generationCode id FB50
Reports
Conclusion and Limits We got the clear idea how companys
different division works in real time and how transaction occurs.
Though it is bit expensive but flexible and scalable. It is
integrated and co-related. It exhibits three- tier distribution
model and supports multi-currency and multi-language. Due to
insufficient time we are not able to complete other parts of FI-
module like account payable and account receivable. Since we were
doing with online software chance of data duplication and missing
was there.
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