Financial Accounting - Slideshow

FI - 1

FI: Financial Accounting

Sales &Sales &DistributionDistribution

SDSD

MMMM

PPPP

QMQM

PMPM

HRHR

FIFI

COCO

TRTR

PSPS

WFWF

ISIS

MaterialsMaterialsMgmt.Mgmt.

ProductProductPlanningPlanning

QualityQualityMgmt.Mgmt.

Plant Mainte-Plant Mainte-nancenance

HumanHumanResourcesResources

FinancialFinancialAccountingAccounting

ControllingControlling

TreasuryTreasury

ProjectProjectSystemSystem

WorkflowWorkflow

IndustryIndustrySolutionsSolutions

R/3Client/Server

ABAP/4

FI - 2

Chapter 1 FI Structure

Organisational Structure Ledgers Components of FI

FI - 3

ClientClient 00120012

Organisational Structure - Client

Company codeCompany code

0002 HotPans AG0002 HotPans AG

Company codeCompany code

0001 HamPans AG0001 HamPans AG

General General ledgerledger

Company codeCompany code

0007 ColdPans AG0007 ColdPans AG

General General ledgerledger

FI - 4

Organisational Structure - Company Code

Company codeCompany code

00010001 HamPans AGHamPans AG

General General ledgerledger

FI - 5

The Ledgers

CustomersCustomers VendorsVendors

AssetsAssets

General General ledgerledger

FI - 6

The Business Area

businessarea 1

businessarea 2

businessarea 3

CoCd 0001

bus. area 1

bus. area 3

CoCd 0002

bus. area 2

bus. area 1

bus. area 3

CoCd 0003

bus. area 3

FI - 7

The functional Components of FI

FI-GLFI-GL

FI-ARFI-AR

FI-APFI-AP

FI-AAFI-AA

General LedgerGeneral Ledger

Accounts ReceivableAccounts Receivable

Accounts PayableAccounts Payable

Asset AccountingAsset Accounting

FI-SLFI-SL

FI-LCFI-LC

Special Purpose LedgerSpecial Purpose Ledger

Legal ConsolidationLegal Consolidation

FI - 8

Chapter 2 G/L Master Records

Chart of Accounts Account Groups Screen Layout

FI - 9

ClientClient 00120012

What is a Chart of Accounts?

Chart of Accounts INT

011020 deprechiation construction011050 apprechiation plant & machine012000 low value assets012010 depreciation - low value013000 vehicles013010 depreciation - vehicles

FI - 10

What is a Chart of Accounts used for?

Company codeCompany code

0001 HamPans AG0001 HamPans AG

General General ledgerledger

ClientClient 00120012

Company codeCompany code

0002 HotPans AG0002 HotPans AGChart of Accounts INT

011020 deprechiation011050 apprechiation012000 low value ass012010 depreciation -013000 vehicles013010 depreciation -

FI - 11

Chart of acctsBChart of acctsB

G/L Account Master Records

Chart of acctsAChart of acctsA

Company CodesCompany Codes

ClientClient

G/L Acct Phila.Natl.Bank

Bal.sheet acct X

Account group FIN.

00010001 00030003

Currency USDUSD CurrencyCurrency CADCAD

Line itemLine item Line itemLine item

Display Display XX DisplayDisplay XX

FI - 12

What can you do with a G/L Account?

G/L Acct Phila.Natl.Bank

Bal.sheet acct X

Account group FIN.

00010001

Currency USDUSD

Line itemLine item

Display Display XX

Create it in Chart of Accounts

Create it in Company Code

Mark for deletion in CoA

Mark for deletion in CoCd

1

4

5

2

Change it in CoA

Change it in CoCd

3

3

FI - 13

Chapter 3 G/L related documents

Structure Working with Documents Configuration

FI - 14

The Document Principle

InvoiceInvoice

Date

to YourCo.

110

3 Bouquets- red roses 100Tax 10% 10

fromFlowers by Yvonne

1 Business 1 Business TransactionTransaction

== 1 Document1 Document

==

Document No. 1300001234

Expense 100Tax 10Cash 110

1300001234

FI - 15

The Structure of a Document

Document HeaderDocument Header

Document Date Doc. typePosting Date CurrencyDoc.Number

Line itemLine item 11

Posting Key 01Account Customer (A/R)Amount 1.100

Line item 2Line item 2

Posting Key 50Account Sales RevenueAmount 1.000

Line item 3Line item 3

Posting Key 50Account TaxAmount 100

Balance = 0Balance = 0

FI - 16

Integration aspectsAdditional Account Assignment - Examples

Cost Center >>>> CO Cost Center Accounting

Project >>>> PS (Project System)

(Job) Order >>>> PP

Cost Object >>>> CO Internal Orders

Asset No >>>> FI-AA

Cust. Order >>>> SD

. .

. .

. .

FI - 17

change

What can you do with documents?

parked document

posted document

reversal document

create

reverse

post

create + post

change

FI - 18

Chapter 4 Customer / Vendor Master Records

Contents Screen Layout Reconciliation Account

FI - 19

Accounts Receivable / Accounts Payable

CustomersCustomers VendorsVendors

General General ledgerledger

FI - 20

Customer / Vendor Master Record

Company codes

Client

General dataGeneral data Air Coditioners Inc.

Chicago 60609

Bank detailsBank details

USA 500 500 10 123456

CoCd 0001 CoCd 0001 Company Code dataCompany Code data CoCdCoCd 00030003 Company code dataCompany code data

Recon.acctRecon.acct nnnnnnnnnnnn Recon.acct Recon.acct nnnnnnnnnnnnPmnt termsPmnt terms ZB01ZB01 Pmnt termsPmnt terms ZB02ZB02Sort line itemsSort line items001001 Sort line itemsSort line items 002002

FI - 21

The Reconciliation Account

Customer 1

1.000

Customer 2

500

Accounts Receivable/Accounts PayableAccounts Receivable/Accounts Payable

Reconciliation AccountDomestic Receivables

5001000

General LedgerGeneral LedgerGeneral LedgerGeneral Ledger

FI - 22

Chapter 5 Business Processes

postings incoming payment, clearing dunning credit management outgoing payment

FI - 23

Document type

Number of Postings

XXXXX XXXXXXXXX

Outgoing Incoming Bank invoice invoice

DR KR SB

Acct type D, S

Doc. No. 1800000025

CustomersCustomers

FI - 24

Posting an Outgoing Invoice

Doc. HeaderDoc. Header

Document Type DR

Document Date

Company Code 0001

Document EntryDocument Entry

Line Item 1PK 01account customeramount 1150tax code A1

Line Item 2 PK 50account 800000amount *

Automatic Line itemsAutomatic Line items

FI - 25

Payment Terms

Cust.acct:Air Cond.Cust.acct:Air Cond.

- - Master Records -Master Records -

Payment DataPayment DataPaym.Terms Paym.Terms

Your Payment TermsYour Payment Terms

ZB00 ZB00 net / netnet / net

ZB01ZB01 14Days 14Days 3% 3% 20Days20Days 1% 1% 30Days30Days net net

ZB02ZB02 15Days 15Days 1% 1% 40Days40Days net net

ZB01ZB01ZB01ZB01ZB0114 3%, 20 1%, 3014 3%, 20 1%, 30

Open Item AnalysisOpen Item Analysis

Incoming PaymentIncoming Payment

Outgoing PaymentOutgoing Payment

Dunning Procedure Dunning Procedure

DR Air Conditioners

01 Invoice 1.100

FI - 26

Taxes

CompanyAir Conditioners

Invoice 1800000025from 03/25/YYYY

Goods 1.000

Tax 100

Total 1.100

Sales revenueSales revenueDR

Credit 1.100Tax 100

Tax code A1Tax code A1

0101

Tax TableTax Table

A1A1 10%10% Output Output TaxTax

A2A2 5%5% Output Output TaxTax

V1V1 10%10% InputTaxInputTax

V2V2 5%5% InputTaxInputTax

Automatic tax entry is postedAutomatic tax entry is posted

Automatic tax adjustment is calculatedAutomatic tax adjustment is calculatedwhen posting cash discount.when posting cash discount.

FI - 27

Open Items

OI1 1000,- Cash D. 3%OI2 4000,- Cash D. 3%OI3 6000,- Cash D. 0%OI4 3000,- Cash D. 3%OI5 1000,- Cash D. 1%

Incoming Payment

Incoming Payment

2910,-match

FI - 28

Processing Open Items

Line Item 1 Field 1 Field 2 Field 3 Amount Cash D. %

Line Item 2 Field 1 Field 2 Field 3 Amount Cash D. %

Line Item 3 Field 1 Field 2 Field 3 Amount Cash D. %

Line Item 4 Field 1 Field 2 Field 3 Amount Cash D. %

Line Item 5 Field 1 Field 2 Field 3 Amount Cash D. %

processactivate / deactivatePost

FI - 29

Dunning Run

MasterMasterRecordsRecords

DocumentsDocuments

EditEdit

Dunning levelDunning level Dunning blockDunning block

Test print Test print

OnlineOnlineparametersparameters

BasicBasicparametersparameters

Dunning program

Print Program

Dunning letters Dunning list

ProposalProposal

FI - 30

The Dunning Procedure

dunning procedure 0001

Name four-level dunning notice, every two weeks

Dunning interval in days 14

No.of dunning levels 4

Min.days in arrears 6

Line item grace periods 2

Interest indicator 01 standard item interest

FI - 31

Why we need credit management

??Where is

our money?

Customer

FI - 32

ClientClient 00120012

The Credit Control Area

Customer Sunshine Ltd. (CoCd-independent part)

Controling Area Europe

CoCd DE CoCd GB

Controling Area Asia

CoCd JP CoCd KR

Sunshine(CoCd-dep.)

Sunshine(CoCd-dep.)

Sunshine(CoCd-dep.)

Sunshine(CoCd-dep.)

FI - 33

Maintaining Credit Limits

ClientClient 00120012

Customer Sunshine Ltd. (CoCd-independent part)

Controling Area Europe Controling Area Asia

CoCd DE CoCd GB CoCd JP CoCd KR

Sunshine(CoCd-dep.)

Sunshine(CoCd-dep.)

Sunshine(CoCd-dep.)

Sunshine(CoCd-dep.)

total credit limit100.000,00maximum individual credit limit20.000,00

individual credit limitindividual credit limit20.000,0020.000,00

individual credit limitindividual credit limit17.000,0017.000,00

FI - 34

Monitoring Credit Limits

Credit limit 15.000,00

Receivables 6.761,13

Special liabil. 0,00

Order value 0,00

Credit exposure 6.761,13

Credit limit used 45,07 %

CompanyBlueSky

Invoice 1800000025from 10.04.96

Goods 1.000

Tax 150

Total 1.150

Bank transfer

FI - 35

Incoming Invoices

CompanyBlueSky

Invoice 1800000025from 10.04.96

Goods 1.000

Tax 150

Total 1.150

Company codeCompany code

00010001 HamPans AGHamPans AG

General General ledgerledger

FI - 36

The Payment Program

Bank transfer

Payment advice

Paymentsummary

Euro Check

Check

PaymentPaymentcontrolcontrol

CurrentCurrentparametersparameters

MasterMasterrecordrecord

Doc.Doc.

Proposal dataProposal data

Print programPrint program

Editproposal

Proposal runProposal run

Payment runPayment run

Print programPrint program

postpost

FI - 37

Chapter 6 Additional Features

foreign currencies financial calendar

FI - 38

Possible Currencies (FI)

Local Currency (company code)

Transaction Currency

Group (client) Currency

Global Company Currency

Hard Currency (country level)

Index Currency (country level)

FI - 39

Additional currencies in FI

Example of currency types in a Multinational Group:Example of currency types in a Multinational Group:

German GroupGerman GroupGroup Currency Group Currency

DEMDEM

USUS GermanyGermany MexicoMexico

Transact. CurrencyTransact. CurrencyLocal CurrencyLocal CurrencyGroup CurrencyGroup CurrencyHard CurrencyHard CurrencyIndex CurrencyIndex Currency

XXX XXX XXXUSD DEM MXPDEM DEM DEM

USDECU

FI - 40

The Financial Calendar

May 1996May 1996

Mon Tues Wed Thu Fri Sat Sun

FI - 41

The End