Fi Overview

Accounting in SAP R/3vepaIntelligroup, Inc. - Proprietary
Application Management - * - Slide: *
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vepaIntelligroup, Inc. - Proprietary
SAP stands for Systems Applications and Products in Data Processing
R/3 stands for Real Time, Three tier architecture( Presentation, Application and Data Base)
Presentation server is the front end
vepaIntelligroup, Inc. - Proprietary Application Management - * - Slide: *
Insert Prospect Logo on Slide Master
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General Ledger
Accounts Receivable
Accounts Payable
SAP FI component is fully integrated with the following modules
Materials Management
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Financial Accounting-GL
Consolidated Balance Sheet and Profit and Loss Accounts of group companies
Balance Sheet and Profit and Loss Account can be drawn in different currencies like Local currency, Group company currency and Company code currency
Different Financial Statement Versions to meet the requirements of Legal and Managerial Purposes
Balance Sheet and Profit and Loss Account as per Product/Division/Branch
Financial Accounting.. continued
In built system controls for validation and posting of the data
Authorization profiles ensures strict compliance with Internal Control Procedures of the management
Planning at GL level
Automatic generation of postings for bank charges,taxes and discounts etc.,
Automatic carry forward of year end balances to the next year
Revaluation of foreign currency items through program with necessary adjustment postings.
Interest is automatically calculated by the system on bank,customer and vendor balances and entry is generated with an option to post or not to post
Speedier entry of transactions through g-l fast entry screens, sample documents etc.,
For recurring expenses like insurance,rents etc., recurring entries can be defined.
These can be scheduled and jobs are automatically generated on the scheduled dates and get posted
Work flow concept facilitates paper less office. Documents entered can be passed on to superiors through workflow for approval and postings.
Additional four posting periods for year end closing operations.
Automatic regrouping of vendor debit balances and customer credit balances at the year end.
Grouping of customer,vendor and g-l accounts through work lists to know the total balances
Flexible reporting system covering various parameters , which can be defined dynamically.
Tracking of security deposits and guarantees to customers and vendors through special g l indicators.
Automatic translation of currency in case of foreign currency transactions and fluctuations are posted automatically
Automatic generation of depreciation entries.
FI-Accounts Receivable and Payable
Vendors dues and settlement of accounts possible with a single stroke through Automatic Payment Program
Vendor can also be defined as customer and net balance can be arrived at effortlessly
Vendor accounts are blocked for payment for quantity and quality rejections
System ensures that credit policy of management is strictly adhered to through Credit Management
Timely reminders on customer over dues ensures effective monitoring of customer dues
Customer and Vendor evaluations can be done on the basis of due date break down, currency risk, DSO analysis
FI-Banks
Electronic transfer of bank data in to SAP R/3 system facilitates speedier reconciliation of bank accounts ensuring the accuracy of the bank accounts
FI-Asset Accounting
Simulation of book and tax depreciation for subsequent years facilitates tax planning
Posting of depreciation in Group currency and Company code currency and with different terms simultaneously possible to meet reporting requirements
Tracking of movement of assets between plant to plant, location to location and among asset groups ensures better control over assets
A snapshot picture of entire asset history can be known at any point of time
Various reports facilitate explanations for year end closing
FI-Consolidation
Consolidation of companies, business areas , profit centers is possible in SAP
This facilitates viewing of the financials of the company thru different angles for analysis and decision making purpose and also to meet internal management and external statutory requirements
Special Purpose Ledger
Special Purpose Ledger is a reporting tool which enables the management to create its own reports spanning across different modules.
Alternative fiscal years with different posting periods can be defined for weekly monthly reports. For example, for accounting purposes, calendar year may be used but for tax reporting financial year may be required. In such cases, Special Purpose Ledger can be used .
SPL is a receiver system and not a sender system
Funds Management
Budgets all revenues and expenses to individual areas of responsibility (fund centers)
Information is available against Budget Vs Actual
Early warning system on reaching stipulated percentage of utilization of budgeted amounts or absolute amounts
Facilitates budget supplements, transfers and releases
Sources meant for budget can be identified and fixed thereby preventing unauthorized use
Travel Management
Travel Management covers the entire gamut of travel from request for the trip, travel plan , advance and accounting of travel expenses after the trip is completed
It is integrated with HR,FI,CO and Funds Management modules
Information about the persons as to where they are, the cost of trip etc. can be obtained online
Technically the set of data base tables
Highest in the organization structure
Company Code:
Chart of Accounts:
List of GL accounts in a structured manner. Chart of Accounts must be attached to a company code
A chart of accounts can have more than one company code
Company code can be assigned to only one chart of accounts
Integration FI-MM
In materials management each material is assigned to valuation class in the material master.
Each valuation class is linked to general ledger accounts through automatic accounts assignments.
For all types of material movements like, goods receipt, goods issue, transfer postings. Relevant stock/consumption clearing accounts are automatically updated.
Vendor Invoice verification is done through the system ensuring compliance with the terms and conditions of the purchase order
At the time of invoice verification, vendor/freight/tax accounts are automatically updated.
Integration with SD
Sales and distribution module’s integration with FI is vital as they provide the source of revenue to the organization.
In SD , pricing is defined by means of pricing elements which in turn refers to individual condition types. Each condition type is attached with an account key, which is linked, to a general ledger account.
Pricing elements like basic prices, discounts and surcharges, taxes and freight automatically passed on to respective general ledger accounts.
Integration with CO
In controlling, expenses and revenue accounts of the financial accounting module are treated as primary cost elements.
For each primary cost element, there has to be a corresponding general ledger account.
The system checks, at the time of creation of primary cost element, whether a corresponding general ledger account exists. If the account does not exist, the primary cost element can not be created.
On line updating of cost centers/production orders at the time of document entry itself.
Integration with Asset Accounting
In asset accounting each asset is attached to an asset class.
Asset class consists of master data.
Each asset class is linked to general ledger account, which is a reconciliation account, through account determination key.
Thus, the assets are maintained in the asset accounting module and the summary values are reflected in general ledgers.