Unit 3a Financial Accounting Overview

7/30/2019 Unit 3a Financial Accounting Overview

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Financial Accounting

(FI)

- Overview -

Unit 3

MELJUN

CORTES


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January 2008 SAP AG - University 2

SAP Enterprise System

R/3

FIFinancial

Accounting

COControlling

PSProject

SystemWFWorkflow

ISIndustry

Solutions

MMMaterials

Mgmt.

HRHuman

Resources

SDSales and

Distribution

PPProduction

Planning

QMQuality

Mgmt.PMPlant Maintenance

SMServiceMgmt.

Client / Server

Integrated Business

Solution

ECEnterpriseControlling

AMFixed Assets

Mgmt.


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Unit 3, Part 1 Overview

Financial Accounting (FI) Goals and Objectives

Target Audience

Components

Managerial Accounting (CO)

Goals and Objectives Target Audience

Components

Com arisons and Relationshi s


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R/3

FIFinancial

Accounting

COControlling

PSProject

SystemWFWorkflow

ISIndustry

Solutions

MMMaterials

Mgmt.

HRHuman

Resources

SDSales and

Distribution

PPProduction

Planning

QMQuality


SMServiceMgmt.

Client / Server

Integrated Business

Solution


AMFixed Assets

Mgmt.

Financial Accounting (FI)


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Goals and Objectives

Financial accounting is designed tocollect all of the data needed tosupport the preparation of financialstatements for external users


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Target Audience

Internal Executives

Senior Management

Accounts

Administration Staff

Employees

External Legal Authorities

Banks

Auditors

Shareholders

Insurance

Taxing Authorities

Media

Financial Analysts


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Components of FinancialAccounting

Financial

Accounting

(FI)

Accounts

Receivable

Accounts

Payable

Special

Purpose

Ledger

Fixed

Assets

Banks

General

Ledger


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R/3

FIFinancial

Accounting

COControlling

PSProject

SystemWFWorkflow

ISIndustry

Solutions

MMMaterials

Mgmt.

HRHuman

Resources

SDSales and

Distribution

PPProduction

Planning

QMQuality


SMServiceMgmt.

Client / Server

Integrated Business

Solution


AMFixed Assets

Mgmt.

Controlling (CO)


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Goals and Objectives

Managerial accounting is designed tocollect data for the preparation andanalysis of reports for use by internal

users


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Target Audience

Executives

Senior Management

Department Managers

Controllers

Cost Accountants


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Components of ManagerialAccounting

Controlling

(CO)

CostElement

Acct

Cost

Center

AcctProduct

Cost

Controlling

Internal

Orders

Activity

Based

CostingProfit

Center

Acct

ProfitabilityAnalysis


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Comparison

ManagerialAccounting

Cost CenterAccounting

Profit CenterAccounting

Product Costing Profitability Analysis

Different Valuations

Flexibility

FinancialAccounting

External Accounting

Balance Sheet

Profit & Loss Statement

Legal Requirements

Standards


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Comparative Reporting

Financial Accounting(FI)

ExternalReporting

Managerial Accounting (CO) ProductCostsReports

InternalReporting

CostCenterReports

ProfitCenterReports

ProfitMargin

Retained

Earnings

Report

LiquidityCalculation

IncomeStatement

BalanceSheet


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Income Statement Bal. Sheet

FinancialAccounting

(FI) TransactionDocumentAmountG/L Account #

Cost Center1900012432

(CO) TransactionDocumentCost CenterCost Element20000657 Controlling

100100

BankSuppliesExp.

CostCenter

100

Interrelated and CloselyConnected


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Financial Accounting (FI)

- The Basics -


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Unit 3, Part 2 Overview

General Ledger

Chart of Accounts

Balance Sheet Assets

Liabilities

Equity

Income Statement Revenues

Expenses


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General Ledger

The General Ledger provides acomplete record of all "acceptable"business transactions from theviewpoint of an accountant

An acceptable business transactionhas the following traits Affects the financial position of the

entity Measurable in a currency

Affects at least two accounts

Assets = Liabilities + Equity


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Chart of Accounts

The foundation for the GeneralLedger is the Chart of Accounts

A Chart of Accounts contains acomplete list of all of the accountsutilized in the General Ledger for agiven company

Financial accounting reports areprepared from the balancescontained in the General LedgersChart of Accounts


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Chart of Accounts

(continued) There are five types of accountscontained in a Chart of Accounts

Assets

Liabilities

Equity

Revenues

Expenses

There are two primary accountingreports prepared from the GeneralLedger Chart of Accounts

Balance Sheet


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Balance Sheet Assets

Things of value that a company ownsor controls that accountants haveagreed to measure in monetary

terms.

Examples of these accounts include:

Cash Accounts receivables

Plant and equipment

Inventory


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Balance Sheet Liabilities

Things that a company owes or mustprovide services in order to settlethat accountants have agreed to

measure in monetary terms.

Examples of these accounts include:

Accounts payable Notes payable

Bonds payable

Unearned revenue


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Balance Sheet Equity

Equity is simply the mathematicaldifference between assets andliabilities.

Includes the monetary amountscollected with respect to all preferredand common stock transactions, the

aggregate net income reported sinceorganization of the company, and areduction for dividends that have

been paid to stockholders.


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Balance Sheet


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Income Statement

Revenues The monetary amounts collectedfrom customers in settlement forgoods purchased from our company

or services rendered by our firm tothem during the current fiscal year.


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Income Statement

Expenses The monetary amounts paid tovendors in settlement for goodspurchased by our company or

services rendered to our firm byother companies during the currentfiscal year.


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Income Statement

Unit 3a Financial Accounting Overview

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