SAP Terminology

FI MODULE

SAP TERMINOLOGY

FI MODULE

Sr.NoSAP-TermSAP Definition

1Company CodeThe smallest organizational unit for which a complete self-contained set of accounts can be drawn up for purposes of external reporting.

2Business AreaOrganizational unit of financial accounting that represents a separate area of operations or responsibilities within an organization and to which value changes recorded in Financial Accounting can be allocated.

3Account AssignmentSpecification of which accounts to post to from a business transaction

4Additional Account AssignmentAll entries in a line item that are made in addition to account number, amount and posting key.These can include: payment terms payment method cost center

5Account GroupAttributes which determine the creation of master records.The account group determines: The data that is relevant for the master record A number range from which numbers are selected for the master records An account group must be assigned to each master record.

6Account typeKey that specifies the accounting area to which an account belongs.Examples of account types are: asset accounts customer accounts vendor accounts G/L accounts The account type is required in addition to the account number in order to identify an account, since the same account number can be used for each account type.

7Accounting DocumentAn accounting document is a representation within the R/3 System of the document (an invoice for example) that triggered the posting. Accounting documents record changes in values in a company code arising from accounting transactions.

8Accounts Payable ledgerA ledger set up to account for the values from business transactions with vendors.

9Accounts Receivable ledgerA ledger set up to record the values resulting from business transactions with customers

10AccrualAn accrual any expenditure before the closing key date which represents an expense for any period after this date.

11DeferralDeferred income is any receipts before the closing key date which represent revenue for any period after this date.

12Acquisition and production costs (Fixed Assets)For external acquisitions;Acquisition costs include all expenses for the acquisition including incidental acquisition costs less reductions to the purchase price.For in-house acquisitions, production costs include: Direct and indirect costs including materials handling overhead Direct labor costs including payroll overhead Special production costs Fair administrative expense (can be included)

13Asset ClassThe main criterion for classifying fixed assets according to legal and management requirements.

14Cashed ChequesProcedure whereby the bank reports the payment of checks.

15Clearing AccountAccount to which postings are temporarily recorded.Clearing accounts are auxiliary accounts that exist for technical reasons and which are repeatedly cleared. Postings may need to be made to a clearing account due to: A time gap between accounting transactions (GR/IR clearing account) Organizational task distribution (bank clearing account) Accounting transactions requiring clarification

16Clearing FunctionProcedure by which open items are cleared.This procedure enables you to post an incoming payment and clear the invoice(s) paid in a single step.

17Cutoff ValueNet value of a fixed asset, below which the system does not continue to calculate depreciation.

18Depreciation KeyKey for calculating depreciation amounts. The depreciation key is defined by specifying: Calculation methods for ordinary and special depreciation, for interest and for the cutoff value Various control parameters

19Document CurrencyCurrency in which a document is posted.

20Document DateDate on which the original document (such as vendor invoice) was created.

21Document NumberKey which identifies each document in a company code in a given fiscal year

22Document TypeKey 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.

23Financial Statement VersionFormat of Balance Sheet

24Foreign Currency ValuationProcedure for determining at a key date the value of the current assets and liabilities posted in foreign currency.

25G/L AccountA structure that records value movements in a company code and represents the G/L account items in a chart of accounts.A G/L account has transaction figures that record changes to the account during a posting period. These figures are totals that are used for G/L reporting.

CONTROLLING

S.NoSAP TermSAP Definition

1Internal OrdersInternal orders are normally used to plan, collect, and settle the costs of internal jobs and tasks.

2Product Cost ControllingProduct Cost Controlling calculates the costs that occur during manufacture of a product, or provision of a service.

3Overhead cost controllingOverhead Cost Controlling component enables we to plan, allocate, control, and monitor overhead costs

4Profitability AnalysisProfitability Analysis analyzes the profit or loss of an organization by individual market segments. The system allocates the corresponding costs to the revenues for each market segment

5Business AreaWe define business areas if we wish to create a balance sheet and a profit and loss statement for internal areas, in addition to company codes.

6Controlling AreaInternal business transactions are portrayed in the controlling area. Organizational unit in an organization that represents a closed system used for cost accounting purposes.

7Cost CenterOrganizational unit within a controlling area that represents a defined location of cost incurrence. The definition can be based on: Functional requirements Allocation criteria Physical location Responsibility for costs

8Cost Center Standard HierarchyA cost center hierarchy comprises all cost centers for a given period and therefore represents the whole enterprise

9Profit CenterA profit center is an organizational unit in accounting that reflects a management-oriented structure of the organization for the purpose of internal control

10Primary Cost ElementA cost element corresponds to a cost-relevant item in the chart of accounts

11Secondary cost elementsCost element that is used to allocate costs for internal activities. Secondary cost elements do not correspond to any G/L account in Financial Accounting. They are only used in Controlling and consequently cannot be defined in FI as an account.

12Activity TypeUnit in a controlling area that classifies the activities performed in a cost center.Activity types in production cost centers are machine hours or finished units.Activity types are used as a synonym of "Allocation base" as used in business publications.

13Account Assignment of Controlling ObjectsRules used for postings in internal accounting (Controlling).

14Fiscal Year VariantThe fiscal year variant contains the number of posting periods in the fiscal year and the number of special periods

15SettlementDuring settlement, some or all of the plan or actual costs incurred on an object are allocated to one or more receivers. The system automatically generates offsetting entries to credit the sender object

16Statistical Key figuresWe can use them as the basis for internal allocations, we can use them as the basis for internal allocations,

17Cost Center planningCost center planning involves entering plan figures for costs, activities, prices or statistical key figures for a particular cost center and a particular planning period. We can then determine the variances from these figures when we come to compare these plan values with the costs actually incurred.

PP MODULE


1Baseline dateDate from which the Payment term is applicable from.

2Base Unit of MeasureStock Keeping unit of measure

3Batchdifferent production lots, delivery lots, quality grades of a material

4BOMBill of materials

5Consumption Based PlanningConsumption Based planning is forward planning based on Re-order point and other methods. Typically applicable for B, C category materials

6ContractsThere are mainly two types in it Quantity and Value

7ConditionsBasic elements in pricing procedure like Basic price, Excise duty, freight etc

8Goods receiptDenotes Physical inward movement of goods or materials (Purchase, Production or other receipts)

9103 Goods ReceiptPhysical inward movement in blocked stock. (No Stock or Valuation updated) (Purchase)

10105 Goods ReceiptReleased Stock to unrestricted from blocked stock (purchase)

11Invoice VerificationThe matching of documents created during the purchase order process, the goods receipt process, and the accounts payable process that is part of the internal controls system within an organization.

13Info-record/ Purchase Info recordThe master record wherein data specific to vendor-material combination is maintained e.g. the delivery time for a material by two suppliers can vary. Source of information on the procurement of a certain material from a certain vendor

14INCO TermsDelivery term like EX works, FOB etc

15Material codeCode for the part

16MRP planningIt is backward schedule planning

17Moving Average PriceWeighted average of Materials, The moving average price is calculated by dividing the value of the material by the quantity of material in stock. It is recalculated automatically by the system after each goods movement or invoice entry.

18Movement typeClassification key indicating the type of material movement (for example, goods receipt, goods issue, physical stock transfer).

19Outline AgreementThis comprises of Contracts and schedule agreements

20Purchase RequisitionThe indent for procurement either by user or MRP/CBP planning

21Purchase Order

22Purchase OrganizationA purchasing organization procures materials and services, negotiates conditions of purchase with vendors, and bears responsibility for such transactions.

23Release StrategyApproval process

24Release CodeCode of Approver

25Request for QuotationT

26Schedule AgreementPurchase order with staggered deliveries

27Source List List of all vendors for a material in a plant

28Sub-contractorThe supplier who converts companys components into semi finished goods and returns the semi finished goods back to company with conversion invoice.

29VendorSupplier

MM Module

Sr. No.SAP TermSAP Definition

A Material TypeMaterial Type is the Type of material that is being used. Finished Product- FERT, Semi-Finished Product-HALB, Spares-ERSA, Raw materials-ROH.

BMaterial The system identifies a product as Material, and the transactions for this material is carried out for the material code generated in the system. During the creation of the Material in the Material Master, the Sales, Purchase, MRP, accounting and Production specs of the Material are keyed in.

CClassification Classification is the classifications of materials under a defined class, which contains the defined characteristics of the material. The values of this characteristics are to be filled for every material

CMaterial GroupIt is a grouping of the material done for reporting purpose in the system.

DMRP Types The MRP types specify the MRP to be carried out for the Material, whether a Lot-For-Lot MRP or a Consumption based MRP is to be carried out.

ELot Sizing ProceduresDuring the MRP Run the system creates procurement elements, where-in the materials are procured in the specified lot-sizes specified.

FMRP ControllerMRP controller is the Person, who evaluates the results of the MRP run in the StockRequirement List

GStockRequirement ListMRP controller is the Person, who evaluates the results of the MRP run in the StockRequirement List

1BOMBill of Materials- it is a list of components required to manufacture the material and the quantity of the components is also mentioned.

1aAlternative BOMAlternatives BOM are created for the same material.

2 RouteSequence of Operations to be followed for carrying out production

3Work centerThe organizational unit, where an operation is carried out

4Sales orderAn object created through which the purchasers requirements are fulfilled

5MRP run Material Requirement Planning: For every requirement, which comes through a sales order line item, the MRP Run carries out a Material as well as Capacity requirement Planning

6Planned orderPlanned order is a mock production order or a Purchase order(When it is a mock Purchase order it is called Purchase requisitions , which the system creates during the MRP Run. These procurement elements are generated only in case of shortage of a Particular material in stock

7Production orderThe Production order is a object through which the requirements demanded in the sale order line item are produced

7aProduction schedulerProduction schedule is the person , who will be handling and controlling the particular production order.

7bScheduling of orderScheduling of the order will schedule the order according to the per piece time recorded in the operations of the route.

7cCosting of orderCosting of the order will calculate the planned cost of the order

7dRelease of orderReleasing will release the order on the shop floor and declare the start order execution.

8Operation A work center is attached an operation and an activity is carried out at the work center

8aSub-Operation Sub-Operation is the operations that are carried out so as to carry out the main operation

9Operation overview Screen Operation overview Screen in the order, shows all the operations involved in the order and its Quantity to be processed, the date of start and finish of the operations

10Operation quantity Operation quantity is the quantity to be produced at the operation

11Scheduling TypeForward Scheduling, Backward Scheduling, Current date Scheduling

12Basic dates Basic Start Date of the order and Basic finish Dates of the order

13Schedule dates Schedule Start Date and Schedule Finish Date of the order, i.e. (Basic Dates + Buffer Time)

14Scrap QuantityScrap quantity is the expected scrap Quantity at the order level or at Operation Level, which is recorded as not useful and would be thrown away or used for any other use

15Component Component is the Lower level of the material that is under question or production

16Component overview screen of the orderIt specifies the total number of the components required in an order and the quantity committed for the order

17Confirmations Declaring production operation wise and work center wise is called confirmations in the system. Confirmations can be cancelled and re-recording of the output is possible in case the recording done is incorrect

17aYield Yield is the Output to be declared in the confirmation.

18Partial Confirmations Declaring partial output quantity out if the total output quantity

19Final Confirmations Declaring the Total quantity, that is to be confirmed

20Activity Types Activity Types are the Activity like Set Up, Machining, and Labor Time to be recorded against that forecasted for the order. Each activity type will have a Per period cost attached to it, thereby calculating the actual cost required for the time required at Set up, machining and labor. This gives Planned versus actual cost analysis

21Rework Rework refers to the rework of the quantity which is rejected at an operation, that is it will be reworked from the initial operations. The rework operations required can be triggered automatically

22Committed Quantity Committed quantity is the quantity committed by the system against that actual required for executing the order

23Withdrawn quantity Withdrawn Quantity is the quantity issued to the order

24Goods Issue Goods Issue is the quantity issued to the order. Goods issue can be to the order or to the cost center. Goods issue can be planned or Unplanned. Goods withdrawal for issuance is always from a Storage location

25Goods receipt Goods receipt is the receipt of a certain quantity from an production order or from a purchase order (from vendor) in to a storage location

26Storage location Storage location is a place, where the Goods are stored, from where goods are issued or where the goods are received in to. The quantity at the location is valuated at material master price (S-standard price or V-Moving average price)

26aMovement Type Movement Type suggests the Movement of goods and the type of movement

27Confirmed Yield Confirmed Yield is the Confirmed Production order quantity

28Confirmed scrap Confirmed Scrap is the Confirmed Operation Scrap quantity

29Back-FlushBack-flush is the automatic and Proportionate withdrawal of BOM quantity to the order, this is in proportion to the quantity confirmed.

30UOM Units of measure

31Batch Batch is the Batch Number and Characteristics given to the material under flow i.e. during material issue or receipt from or to a storage location

32Co-Product Co-Product is the product which is produced while production of the main product and which has certain appreciable sale value

33By-ProductBy-Product is the product which is produced while production of the main product and which has very less or nil sale value

34Variances Variances are the difference between the planned and the actual cost of production. This is a period end activity

35Settlement Settlement is the activity of transferring or allocating of costs from one cost object to the other, i.e. from the production order to WIP to sales order.

36Alternative Sequence of operations Alternative Sequence of operations in a route can be used

37Parallel sequence of operation Parallel Sequence of operations in a route can be used

38Missing part List Missing part List Provides we with the List of missing parts in the manufacture of the order

39System status Shows the status of the order and the operations of the order.

SD MODULE


1CustomerAll parties, related to sales, with whom the company transacts business directly. A customer can either be a sold-to-party, ship-to-party, bill-to-party or payer

2DivisionGroup of similar products

3Distribution ChannelThe distribution channel represents the channel through which saleable materials or services reach customers e.g. wholesale, retail and direct sales.

4PlantA plant can either be a place of production, or a single storage location, or a combination of closely situated storage locations where stock is kept.

5Sold-to-PartyPerson or company that places an order for goods or services. The sold-to party can also perform the functions of the payer, bill-to party or ship-to party.

6Ship-to-PartyPerson or company that receives the goods. The ship-to party is not necessarily the sold-to party, the bill-to party or the payer.

7Bill-to-PartyPerson or company that receives the invoice for a delivery or service. The bill-to party is not necessarily the payer who settles the bill.

8PayerPerson or company that settles the bill. The payer is not necessarily the bill-to party.

9InquiryA document to record customer inquiries.

10QuotationDocument type for sending quotations to the customers

11Sales OrderDocument Type to enter the details of the order received from the customer.

12Delivery OrderDocument created to initiate delivery of goods to the customer.

13PickingTaking goods from a storage location as per the needed quantity for shipping

14Posting Goods Issue (PGI)When the goods leave the company, issue of goods is posted in the system. This is called PGI.

15InvoiceDocument used to bill a customer for goods delivery.

16Proforma InvoiceAn invoice that is created on paper to provide the customs, other authorities or customer with evidence of the price of the goods.

17Credit MemosA sales document created on the basis of a customer complaint. This reduces receivables in Financial Accounting.

18Debit MemosA sales document created on the basis of a customer complaint. This increases receivables in Financial Accounting.

PM MODULE


1. Functional LocationThe business object functional location is an organizational unit within Logistics, that structures the maintenance objects of a company according to functional, process-related or spatial criteria. A functional location represents the place at which a maintenance task is to be performed. A functional location represents system area at which an object can be installed.

2. EquipmentA piece of equipment is an individual object that is to be maintained independently. Each piece of equipment is managed independently in the system, so that you can: Manage individual data from a maintenance perspective for the object Perform individual maintenance tasks for the object Keep a record of the maintenance tasks performed for the object Collect and evaluate data over a long period of time for the objectPieces of equipment can be installed and dismantled at functional locations. The usage times for a piece of equipment at a functional location are documented over the course of time.Since many of these physical objects are managed as "assets" in Asset Management, the term "piece of equipment" was chosen for objects defined from a technical perspective, in order to avoid confusion with the activated tangible assets.

3. Bill of materialA maintenance bill of material (BOM) is a complete, formally structured list of the components making up a technical object or an assembly. The list contains the object numbers of the individual components together with their quantity and unit of measure. The components can be stock or non-stock spares or assemblies, which in turn can be described using maintenance BOMs.

4. Measuring PointMeasuring points in the R/3 System describe the physical and/or logical locations at which a condition is measured. In Plant Maintenance, measuring points are located on technical objects, in other words, on pieces of equipment or functional locations

5. Measurement DocumentThe data transferred to the system after a measurement has been taken at a measuring point or a counter is described in the R/3 System as a measurement document.

6. PermitsAgreement required depending on setting before an order may be released or technically completed. You can use permits to ensure that special approval must be obtained before orders are executed.

7. Task listsMaintenance task lists describe a sequence of individual maintenance activities which must be performed repeatedly within a company. Task lists are used to standardize these recurring work sequences and to plan them more effectively.

8. Maintenance plansDescription of the maintenance and inspection tasks to be performed at maintenance objects. The maintenance plans describe the dates and scope of the tasks.

9. Maintenance StrategyA maintenance strategy defines the rules for the sequence of planned maintenance work. It contains general scheduling information, and can therefore be assigned to as many maintenance task lists (PM task lists) and maintenance plans as required. A maintenance strategy contains maintenance packages in which the following information is defined:The cycle in which the individual work should be performed (for example, every two months, every 3,106.86 miles, every 500 operating hours)

10. Work centerThe work center in plant maintenance represents one person or a group of people who perform the maintenance work .

11. Maintenance notificationMaintenance notification in maintenance processing in the event of a malfunction or exceptional situation to: Describe the exceptional technical condition at an object Request the maintenance department to perform a necessary task Document work that has been performedMaintenance notifications document maintenance tasks completely, and make them available for analysis in the long term. You can use them for preliminary planning and execution of tasks.

12. Maintenance orderMaintenance order is used for: Plan tasks in detail with regard to type, scope, dates and resources Monitor the execution of tasks Define rules for account assignment, settlement and budgets Enter, assign and settle the costs which arise from tasks

Documents

SAP Terminology