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, ,

Audit Lead Technology

Airtel

Email: mrahman2k4@yahoo.com; mamunur.rahman@bd.airtel.com

Cell: 01610006106, 01711007213

Version: 3.0

Last Updated: 2-Mar-2011

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SAP Major Certification Areas for ERP

Procurement Sales &Production Planning

(MM)

TSCM 50, 52

Distribution (SD)

TSCM 60, 62

& Control (PP)

TSCM 40, 42

Financial Accounting (FI)

Financial Accounting : TFIN 50, 52

Management Accounting / Controlling (CO)

Mana ement Accountin : TFIN 20, 22

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Finance Professionals

How Participants are Benefited thru FI Knowledge

Knowledgeable & skilled staff

Know various options available in the system how the Financial processes

may be implemented

Auditors Get a clear insight of the systems, processes & data

Know in advance clearly how data are processed & reported; what may go

wrong at which point

IT Professionals

Get a strong path into SAP-jobs

Get a very good exposure into business processes

Understand the objectives of the underlying technologies & BASIS

SAP Functional Consultants and enterpreneurs Get the skill & understanding of the Core of SAP

Understand where to integrate other modules of SAP

Career Seekers

Get a very good job-opportunity in related fields

Understand various options/paths of career in the enterprises

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Methodology

We would conduct the training as

PPT Slides, where necessary

Practising the Topics in an SAP system (IDES version)

Open Discussion to explain things better

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SAP

-

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Introduction to SAP-FI and Org. Units

Topics to cover

Introduction to ERP (FICO & SCM)

Organization of SAP ERP Modules

FI Organizational Units

Part-1: Business Organization and Accommodation in SAP

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Assumptions

Participants have moderate:

Skills on financial reporting

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Concept Check : Basic Accounting Equation

The Accounting Equation,

=

A = L + C, [where C = I E + Cp]

= p

A + E = L + I + CpFor simplicity,

A + E = L + I + C

Debit Credit

Day-1: Introduction to SAP and a Case Study [Part-1]

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Concept Check : T-Accounts

Debit Credit

GL Head which will be debited 50,000.00 ...0.00

GL Head which will be credited...0.00 . 50,000.00

Or, simply,

Debit Credit

GL Head which will be debited 50,000.00

GL Head which will be credited .............50,000.00

Day-1: Introduction to SAP and a Case Study [Part-1]

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Concept Check : Accounting Journal

Journal No. ..

Date..................

..

Narration

..

.

GL Head GL Descri tion Debit Tk. Credit Extended

Tk.

Fields

GL Head-1 Paper price 50,000/-

- - -,

GL Head-3 Labor charge 1,000/-

GL Head-4 Petty Cash 56,000/-

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Concept Check : Trial Balance

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Concept Check : Income Statement (P&L Account)

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Concept Check : Balance Sheet

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Concept Check : Cash Flow

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Concept Check : Changes in Owners Equity

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SAP

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SAP Evolution

Recent Evolutions in SAP:

Builds on R/3

SAP R/3 Enterprise 4.7

2002

mySAP ERP

2003

n ro uces e eaver a orm

SAP ECC 5.0

(ERP Central Component)

2004

SAP ECC 6.0

2005

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Organization of SAP ERP Modules

FIFI

FinancialFinancial

AccountingAccounting

SDSD

Sales &Sales &

DistributionDistribution

Major SAP Modules

SD Sales & Distribution

Major SAP Modules

SD Sales & Distribution

R/3R/3

COCO

ControllingControlling

AMAM

Fixed AssetsFixed Assets

Mgmt.Mgmt.

MaterialsMaterials

Mgmt.Mgmt.PPPPProductionProduction

PlanningPlanning

MM Materials Management

PP Production PlanningPM Plant Maintenance

QM Quality Management

MM Materials Management

PP Production PlanningPM Plant Maintenance

QM Quality Management

Client / ServerClient / Server

ABAP/4ABAP/4

PSPS

ProjectProject

SystemSystemOCOC

Office &Office &

QMQM

QualityQuality

Mgmt.Mgmt. PMPMPlantPlant

AM Asset Management

PS Project System

FI Financial Accounting

CO Controlling

AM Asset Management

PS Project System

FI Financial Accounting

CO Controllingommunommun --

cationcationISIS

IndustryIndustry

SolutionsSolutions

HRHR

HumanHuman

ResourcesResources

a n enancea n enance HR Human Resources

WF Work Flow

HR Human Resources

WF Work Flow

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Financial Modules

Enterprise Controlling

ControllingFinancial AccountingTreasury

General

AP

e ger

AccountsPayable

CCACost Center

Accounting

Product

TM TreasuryManagement

Cash

ARAccounts

Receivable

Costing

Profitability

Management

Funds

Management

AAAsset

Accounting

IM Capital Investment & Financing

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SAP

- FI Organizational Units

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Organizational Units in FI

Company

Company Code

Business Area

Credit Control Area

Dunning Area

Financial Management Area

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Enterprise Structure

An enterprise can consist of several legally independent companies, for which

.

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Enterprise Structure Mapping to SAP

Group ClientClient

Company

Factory

Company codeCompany code

SitePlant

Affiliate

Sales organizationSales organizationSales department

Wholesale DistributionDistributionDistribution channelchannelchannelRetail

Storage locationStorage locationStorage location

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Client & Company

A commercially, organizationally, and technically self-contained unit within an SAP

System. Clients have their own master records and set of tables.

Company:

created according to the relevant legal requirements, e.g., Sanofi Aventis, Novartis,Avery Dennison, etc, enlisted under US SEC. It can include many individual

company codes (CC), e.g., Novartis BD, Novartis IN, Novartis PK, etc.

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Company Code (CC)

CC is the smallest organizational unit of external accounting for which a complete,

- .

in FI. It is usually a legally independent company.

A CC could also be a separate, but not independent, commercial place of work,

. ., , . .

Lanka is another CC.

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Plant (Factory)

The plant is an operating area or branch within a company. A plant has its own

material master data. You can maintain data at plant level for the following viewson a material master record in particular: MRP, Purchasing, Storage, Work

scheduling, Production resources/tools, Forecasting, Quality management, Sales,

Costing.

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Business Area

Corresponds to a specific

business segment or area of

responsibility in a company.

Business areas are used in

external segment reporting(over and above company

codes), based on the significant

areas of operation of a company

(e.g., product lines, branches,

etc).

Financial statements can be

created for business areas for

internal purposes. SBUs may be

implemented as BAs.

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Managerial Grouping

Financial Management Area:

It is an organizational unit within accounting which structures the business

organ za on rom e perspec ve o as u ge anagemen an un s

Management.

Functional Area:

A functional area is an organizational unit within accounting which structures your

business organization according to the requirements of cost-of-sales accounting.

Typical functional areas are Sales, Production, Marketing, Admin and R&D.

Credit Control Area:

It is an organizational unit that specifies and checks a credit limit for customers.

Within a credit control area, the credit limits must be specified in the samecurrency.

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Profit Center [Master Data in CO]

It is a management-oriented organizational unit used for internal controlling

purposes to determine profit for internal areas of responsibility. It lets usdetermine profits and losses using either period accounting or the cost-of-sales

approach.

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Cost Center [Master Data in CO]

An organizational unit within a controlling area that represents a defined location

of cost incurrence. E.g., Production, Service, Administration, Sales & Distribution,etc. It is used to track where costs occurred within the Organisation (i.e., as a cost

collector)

*) A profit center differs from a cost center in that the cost centers merely

represent the units in which capacity costs arise, whereas the person in charge ofthe profit center is responsible for its balance of costs and revenues.

*) The essential di fference between a profit center and a business area is that prof it

centers are used for internal control, while business areas are more geared toward

an external viewpoint.

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Mapping Enterprise Structure to SAP

Mapping the organizational units to the R/3 organizational units could look like this, for

example:

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SAP

SAP Document Structure

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A Sample Document

Doc

Header

Line

Item

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Posting Key & Transaction Code

Posting Key:

It works at the doc line item level. Posting keys serve three main functions in

account ng:

a. Controls which type of account the line item will be posted to.

b. Control whether the line item will be osted as a debit or a credit.

c. Lastly, helps in determining field statuses for additional details.

Default posting key values:

*) GL - "Debit" is posting key 40 and "Credit" is posting key 50.

*) Customer Invoices - "Debit" is posting key 01 and "Credit" is posting key 50.

*) Vendor Invoices - "Debit" is posting key 40 and "Credit" is posting key 31.

Transaction Code:

It is the short-cut to access a particular screen in SAP. For example, FB50 is the

. , -

interface (screen) through which documents are entered or manipulated.

i l

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Fiscal Year

Fiscal Year Variant:

It is the object in which we define our fiscal year policy in SAP. A FY is an

accounting period over which financial reporting is mandatorily done. A FY consist

of several interim eriods, called Postin Periods. A FY usuall includes 12 ostin

periods and at least one special period.

FY Types:

a. FY same as CY, e.g., year 2009 as defined in calendar

b. FY dependent on CY & different than CY, e.g., FY only valid for

2009,2010c. n epen en o eren an , e.g., pr ar w

same period ranges

Postin Periods:

Used to post regular transactions during the year. These are usually months.

Used for entries required after closing the year. Max 4 special periods are possible.

FY C l d Y

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FY same as Calendar Year

The fiscal year begins on January 1. Twelve posting periods are available.

The periods correspond to calendar months. You do not have to define the

individual periods. The system automatically uses the calendar months.

Y I d d t FY

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Year-Independent FY

The fiscal year begins on April 01 every time, for example. It is not same as calendar year, i.e., Jan-Dec; rather Apr-Mar, for example.

Ye i de e de t FY ( e iod diff th le d o th )

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Year-independent FY (period diff. than calendar months)

Year dependent FY

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Year-dependent FY

It is valid for specific calendar years.

It does not begin & end on specific days of the calendar year every time .

It is the only solution when we want to have strictly 30 days for every month, forexample.

In FY 2009: Period-1 starts on Jan 01, 2009

In FY 2010: Period-1 starts on Dec 28, 2009

2009

Period 1 2 3 4 5 6 7 8 9 10 11 12

n o

Period

Year

Displ.

0 0 0 0 0 0 0 0 0 0 0 0

SAP

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SAP

.

Model Company MR Batteries BD Limited

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Model Company MR Batteries BD Limited

For master data, please refer to

supplementary data sheets.

Introduction to SAP-FI

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Introduction to SAP-FI

Hope that you enjoyed the class.

End of Day-1

Thank ou

Day-1: Introduction to SAP and a Case Study [Part-1]