SAP FICO Terminology

Client: In commercial, organizational and technical terms, a self-contained unit in an R/3 System with separate master records and its own set of tables.Company Code: The smallest organizational unit of inancial !ccounting for which a complete self-contained set of accounts can be drawn up for purposes of e"ternal reporting.Business Area: !n organizational unit of financial accounting that represents a separate area of operations or responsibilities within an organization and to which #alue changes recorded in inancial !ccounting can be allocated.Enterprise structure: ! portrayal of an enterprise$s hierarchy. %ogical enterprise structure, including theorganizational units re&uired to manage the S!' System such as plant or cost center. Social enterprise structure, description of the way in which an enterprise is organized, in di#isions or user departments.The (R application component portrays the social structure of an enterpriseFiscal year variant: ! #ariant defining the relationship between the calendar and fiscal year. The fiscal year #ariant specifies the number of periods and special periods in a fiscal year and how the S!' Systemis to determine the assigned posting periods.Fiscal Year: ! period of usually )* months, for which the company produces financial statements and ta+es in#entory.!nnual displacement/,ear shift- or the indi#idual posting periods #arious entries may be necessary. or e"ample, in the first si" periods the fiscal year and calendar year may coincide, whereas for the remainingperiods there may be a displacement of .).Chart of Accounts: Systematically organized list of all the //% account master records that are re&uired in a company codes. The 01! contains the account number, the account name and control information for //% account master record.Financial statement version: ! hierarchical positioning of //% accounts. This positioning can be based on specific legal re&uirements for creating financial statements. It can also be a self-defined order.Account group: !n ob2ect that attributes that determine the creation of master records. The account group determines- The data that is rele#ant for the master record ! number range from which numbers are selected for the master records.Field status group:ield status groups control the additional account assignments and other fields that can be posted at the line item le#el for a //% account.Posting Key: ! two-digit numerical +ey that determines the way line items are posted. This +ey determines se#eral factors including the- !ccount type, Type of posting 3debit or credit4,%ayout of entry screens .Open item management: ! stipulation that the items in an account must be used to clear other line itemsin the same account. Items must balance out to zero before they can be cleared. The account balance is therefore always e&ual to the sum of the open items.Clearing: ! procedure by which the open items belonging to one or more accounts are indicated as cleared 3paid4.Reconciliation account- ! //% account, to which transactions in the subsidiary ledgers 3such as in the customer, #endor or assets areas4 are updated automatically.Special !" indicator: !n indicator that identifies a special //% transaction.Special //% transactions include down payments and bills of e"change.Special !" transaction: The special transactions in accounts recei#able and accounts payable that are shown separately in the general ledger and sub-ledger.They include-5 6ills of e"change5 7own payments5 /uarantees#ouse Ban$: ! business partner that represents a ban+ through which you can process your own internal transactions.%ocument type: ! +ey that distinguishes the business transactions to be posted. The document type determines where the document is stored as well as the account types to be posted.Account type: ! +ey that specifies the accounting area to which an account belongs.8"amples of account types are-5 !sset accounts5 0ustomer accounts5 9endor accounts5 //% accounts%unning procedure: ! pre-defined procedure specifying how customers or #endors are dunned.or each procedure, the user defines5 :umber of dunning le#els5 7unning fre&uency5 !mount limits5 Te"ts for the dunning notices%unning level: ! numeral indicating how often an item or an account has been dunned.%unning $ey: ! tool that identifies items to be dunned separately, such as items you are not sure about or items for which payment information e"ists.Year&end closing: !n annual balance sheet and profit and loss statement, both of which must be createdin accordance with the legal re&uirements of the country in &uestion.Standard accounting principles re&uire that the following be listed-5 !ll assets5 !ll debts, accruals, and deferrals5 !ll re#enue and e"penses'onth&end closing: The wor+ that is performed at the end of a posting period.Functional area: !n organizational unit in !ccounting that classifies the e"penses of an organization by functions such as-5 !dministration5 Sales and distribution5 ;ar+eting5 'roduction5 Research and de#elopment0lassification ta+es place to meet the needs of cost-of-sales accounting.(oted item: ! special item that does not affect any account balance.