SAP Financial Accounting (FI)SAP Financial Accounting (FI)

Mamunur Rahman, CISA, EEEAudit Lead - TechnicalWarid Telecom/ Airtel

Email: mrahman2k4@yahoo.com; mamunur.rahman@waridtel.com.bdCell: 01610006106, 01711007213

Version 2.0Last updated: 18-Sep-2010

SAP Major Certification Areas for ERP

Procurement (MM)

TSCM 50, 52

Sales & Distribution (SD)

TSCM 60, 62

Production Planning & Control (PP)

TSCM 40, 42

Financial Accounting (FI)

Financial Accounting : TFIN 50, 52

Management Accounting / Controlling (CO)

Management Accounting : TFIN 20, 22

Introducing the participants to

Concept of ERP Modular organization of SAP Key terms & concepts in FI General Ledger (GL) functionalities Banking functionalities Accounts Payable (AP) functionalities Accounts Receivable (AR) functionalities Asset Management functionalities New FI features & Custom reporting

Objectives of this Training

Finance Professionals Knowledgeable & skilled staff Know various options available in the system how the Financial processes

may be implemented Preferred in recruitment in Finance streams

Auditors Get a clear insight of the systems, processes & data Know the controls points in the system Know in advance clearly how data are processes & 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 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

How Participants are Benefited thru FI Knowledge

We would conduct the training as

PPT Slides, where necessary Using a Model Company to understand the course better Practising the Topics in an SAP system (IDES version) Open Discussion to explain things better

Methodology

Organization of this Training Course

This course is organized in seven parts (15 sessions):

Part-1: Business Organization and Accommodation in SAP Part-2: GL Functions Part-3: AR Functions Part-4: AP Functions Part-5: FA Functions Part-6: New FI Functions Part-7: Custom Reporting

Each session spans over 03 hours.

Course Outline

Part-1: Business Organization and Accommodation in SAP Day1 – Introduction to SAP and a simplified Case Study of a company Day2 – Enterprise Modeling & SAP Terminologies Day3 – Preparing the SAP Environment

Part-2: GL Functions Day4 – Defining GL Master Data Day5 – GL Journal Posting & Basic Reporting

Part-3: AR Functions Day6 – Defining AR Master Records Day7 – AR Transaction Posting & Basic Reporting

Part-4: AP Functions Day8 – Defining AP Master Records Day9 – AP Transaction Posting & Basic Reporting

Part-5: FA Functions Day10 – Defining FA Master Records Day11 – FA Transaction Posting & Basic Reporting

Course Outline … …

Part-6: New FI Functions Day12 – New FI Introduction & Master Data Day13 – New FI Processing & Reporting

Part-7: Custom Reporting Day14 – SAP Query Tool Day15 – External Reporting Tools, e.g., Crystal Reports, MS Access, etc

SAP

Stepping into the FI Course

Day-1: Introduction to SAP and a Case Study

Part-1: Business Organization and Accommodation in SAP

Topics to cover

Introduction to ERP (FICO & SCM) Organization of SAP ERP Modules Adopting a Model Organization to Explain SAP Features Focusing on Financial Accounting (FI)

Enterprise Resource Planning (ERP)

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

Enterprise Resources• Money, Men, Machines & Materials• Lands, Licenses & Goodwill, Relationships, Knowledge, Time,

etc

Functions of ERP applications• Helping the organization to plan, operate & control enterprise

resources for optimal utilization

Famous Names of software in ERP domain:• SAP• Oracle Apps• JDE• PeopleSoft• BAAN, etc

Enterprise Resource Planning (ERP)

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

ERP is a generic collection of back-office applications, and it is purely a business application. It is process-oriented rather than function-oriented.

Segregation in ERP suites• Financials (FI, AM, CO, etc)• Supply Chain (MM, PP, SD, etc)• Human Resources

Evolution of ERP (business applications):• 1960s: Inventory Control • 1970s: Material Requirement Planning (MRP) • 1980s: Manufacturing Resources Planning (MRP-II) • 1990s: Enterprise Resource Planning (ERP)

How ERP is implemented (ASAP Methodology)

ASAP Phase-1: Project Preparation

ASAP Phase-2: Business Blueprint

ASAP Phase-3: Realization

ASAP Phase-4: Final Preparation

ASAP Phase-5: Go Live & Hyper-care

How ERP is implemented in Generic Statements

Part-1: Business Organization and Accommodation in SAP

Study the manual Business Operations

Identification of Core & Sub-processes under scope

Identify the practice of deviation & get the commitment from senior management & domain owners to stick to agreed-processes

Map the Business Processes to SAP supported processes

Map the required controls in each Process

Identify the necessity of customization

Configure SAP to implement the Processes

Obtain the management’s objectives and scope of implementation

Apply the customizations in the system

Complete system deployment, documentation, training & handover

Major Business Processes

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

PreSales

SOP

Requisition

Sell

Make

Buy

SalesOrder

DeliveryNote

GoodsIssues

Billing Payment

MPS MRPPlanned

OrderProduction

Order

ShopFloor

Control

ContractsVendor

SelectionPurchase

OrderGoods

ReceiptInvoiceReceipt

VendorPayment

Financial Accounting

Controlling/Management Accounting

Human Resources Plant Maintenance

Sales & Distribution Process

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

1. Pre Sales Activities

2. Sales Order Processing

3. Inventory Sourcing

4. Delivery

5. Billing6. Payment (Collection)

Procurement Process

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

PurchasingRequirement

SourceDetermination

VendorSelection

Order Processing

OrderFollow-up

GoodsReceipt

InventoryManagement

InvoiceVerification

Payment &Reconciliation

Manufacturing Planning & Execution Process

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

ForecastingSales

OperationPlanning

Demand Management

MPS

MRP

ProductionOrders

OrderSettlement

Reporting &Analysis

SalesInformation

SystemCO-PA

Inventory

Costing

CAPACITY

Production Master Data

ProcurementPlanning

Execution

SAP

Stepping into SAP implementation of ERP

SAP Evolution

Part-1: Business Organization and Accommodation in SAP

SAP R/3 Enterprise 4.7

2002

mySAP ERP

2003

SAP ECC 5.0

(ERP Central Component)

2004

SAP ECC 6.0

2005

Recent Evolutions in SAP:

Builds on R/3

R/3 is replaced by ECC

Introduces NetWeaver Platform

SAP Milestones over 30 years

Part-1: Business Organization and Accommodation in SAP

Organization of SAP ERP Modules

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

R/3R/3

Client / ServerClient / ServerABAP/4ABAP/4

FIFIFinancialFinancial

AccountingAccounting

COCOControllingControlling

AMAMFixed AssetsFixed Assets

Mgmt.Mgmt.

PSPSProjectProjectSystemSystemOCOC

Office &Office &Communi-Communi-

cationcationISISIndustryIndustry

SolutionsSolutions

MMMMMaterialsMaterials

Mgmt.Mgmt.

HRHRHumanHuman

ResourcesResources

SDSDSales &Sales &

DistributionDistribution

PPPPProductionProductionPlanningPlanning

QMQMQualityQualityMgmt.Mgmt. PMPM

PlantPlantMaintenanceMaintenance

Major SAP Modules

SD – Sales & DistributionMM – Materials ManagementPP – Production PlanningPM – Plant MaintenanceQM – Quality ManagementAM – Asset ManagementPS – Project SystemFI – Financial AccountingCO – ControllingHR – Human ResourcesWF – Work Flow

Major SAP Modules

SD – Sales & DistributionMM – Materials ManagementPP – Production PlanningPM – Plant MaintenanceQM – Quality ManagementAM – Asset ManagementPS – Project SystemFI – Financial AccountingCO – ControllingHR – Human ResourcesWF – Work Flow

Financial Modules

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

ECEnterprise Controlling

COControlling

FIFinancial Accounting

TRTreasury

GL

AP

AR

General Ledger

AccountsPayable

AccountsReceivable

CCA

PC

PA

Cost CenterAccounting

ProductCosting

ProfitabilityAnalysis

TM

CM

FM

TreasuryManagement

CashManagement

FundsManagement

IM – Capital Investment & Financing

MASTERDATAAA

Asset Accounting

Assumptions

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

Participants have moderate:

knowledge on financial accounting &

Skills on financial reporting

Concept Check : Basic Accounting Equation

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

The Accounting Equation,

Assets (A) = Liabilities (L) + Owners’ Equity (C)

A = L + C, [where C = I – E + Cp]

A = L + I – E + Cp

A + E = L + I + Cp

For simplicity,

A + E = L + I + CA + E = L + I + C

Debit Credit

Concept Check : T-Accounts

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

Debit CreditDebit Credit

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

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

Debit CreditDebit Credit

GL Head which will be debited ……… 50,000.00

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

Or, simply,

Concept Check : Accounting Journal

Journal No. …………………………..

Date………………………..................

Classification ………………………..

Narration…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..………………………………………………………………………………………………………………………….

GL Head GL Description Debit, Tk. Credit, Tk.

Extended Fields …

GL Head-1 Paper price 50,000/-

GL Head-2 Freight-in 5,000/-

GL Head-3 Labor charge 1,000/-

GL Head-4 Petty Cash 56,000/-

Concept Check : Trial Balance

Concept Check : Income Statement (P&L Account)

Concept Check : Balance Sheet

Concept Check : Cash Flow

Concept Check : Changes in Owners’ Equity

Case Study – MR Batteries Limited

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

SAP - FI

Hope that you enjoyed the class.☺

End of Day-1

Thank you…