Resume BAB 5 Financials part 1

SAP R/3 Accounting: Financial and Management  Accounting

SAP R/3 Accounting System

The accounting system with its various sub-units is a critical part of the Sap solution. The integration of the various aspects of accounting with each other and with logistics and human resources applications becomes a management tool for all company departments. interfaces with the logistics chain from procurement to sales allow the optimization of operational processes. The efficiency of this kind of solution is increased by including cross-company busines processes with customer, suppliers or financial institutions.

Besides providing accounting data, the acccounting system must concentrate primaly on processing operational data for strategic company decisions. documentations and administration function are generally performed automatically and in the background.

For international companies, SAP R/3 offers flexible software that can be used in different countries. The system meets the needs of the major industrial nations of the world with its multilingual approach, flexible currency handling and country specific functions for taxes, reporting and payment transactions. SAP R/3 provides all the necessary function for developing a uniform accounting system that can be consolidate across international borders.

The SAP R/3 Accounting System consists of several components:

Financial Accounting (FI) includes:

1.     G/L Accounting
2.     Accounts Payable and Accounts Receivable
3.     Asset Accounting

Corporate Finance Management (CFM) includes:

1. Corporate Finance Management ( planning, analysis, decision support, financial transactions,   payment and risk capablities in various group environment)
2. Treasury Management (cash, stock, bonds and derivstives) Enterprise Controlig includes :
3.  EIS
4.  Profit Center Accounting
5.  Legal Consilidation
6.  Planning

Profitability and Sales Accounting includes:

1.       Profitability Analysis

Product Cost Controlling includes:

1.       Product Cost Planning
2.       Cost Object Controling

Overhead Cost Controlling includes:

1.       Cost Centers
2.       Internal Orders
3.       Activity-Based Costing

Investment Management (IM):

Allows company-wide planning of capital inevesment program and control of individual capital invesment measure.

Project Management : 

Allows efficient planning, cost-sensitive control and target-oriented implementation of projrct with comperhensive integration with Controling and Logistic.

As the central integration element in SAP R/3 FI, the general ledger offers a broad range of features for external accounting. The flexsible repoting feature with multiple finacial statement versions provides clear and customizes views of relevant data with the desired level of summarization.

Organizational Elements

Assigning all relevant business transactions to these organizational unit by using explicit or implicit account assigment updates the ledgers. The SAP R/3 FI-SL system also conveys actual values for the integrated controlling objects (cost center, order, cost object, profit center) countained in SAP R/3 Controlling (CO) application. The depiction of current stucture and future strategies has bearing on how you use the orgazational terms in SAP accounting system :

    - Corporate group
    - Company
    - Company Code
    - Business area
    - Functonal area
    - Profit center

In the simplest case, a company that operates as a single company at national level and has no substanial internal reporting requirements is represented as a company code. In more complex corporate structures, the SAP R/3 systems scaling function is used to either separate or integrate company components. This leads to two general company concepts-centralized and decentralized.