SAP Financial Reporting

• Aims & Objectives

– Introduction to SAP financial modules– Understanding of SAP cost objects– Overview of University accounting structure– Outline of available reports– Confidence in using reports

SAP Help

• Documentation

• ISS website http://www.leeds.ac.uk/iss/infosystems/

• SAP on-line help

• Superusers

• Helpdesk 33333

What is SAP?

• Enterprise Resource Planning system• SAP world’s largest ERP software supplier• Based in Walldorf, Germany• Implemented at Leeds in April 1999• Continuing programme of development

Components of SAP

Finance

Human Resources• Personnel Management• Payroll

Logistics• Purchasing• Sales• Production• Project System

Reporting Requirements

• Income & Expenditure• Balance Sheet• Cash Flow

• Department Costs• Project costs• Costs v plan

Financial Accounting

Financial Accounting

ManagementAccounting

ManagementAccounting

SAP Finance Modules

Financial Accounting• External Accounting• Financial Statements• Legal Requirements• Standards

Controlling• Internal Accounting• Cost Reporting• Management Accounting• Flexible

FIFI

COCO

Components of Controlling

Overhead Cost Controlling• How high are the costs of organisational activities?• Are they within budget?

COOM

COOM

Cost & Revenue Element Accounting• What costs occur within our organisation?

COCEL

COCEL

Profit Centre Accounting• How profitable are the enterprise areas?

ECPCA

ECPCA

SAP Cost Objects

• Used to track where costs occur within the organisation

Cost Centres

Internal Orders

ProjectSystemWBS

Elements

CO & PSCO & PSControlling & Controlling &

Project SystemProject System

Cost Objects

}

Balance Sheet

ProfitCentres

Cost Centres

• An organisational unit within SAP to which costs (and income) can be assigned

• Six digit number e.g. 252000

• Used to track costs of departments/major activities

Cost Elements

• Used to collect and summarise costs according to classification

• Five digit number e.g 50010

• Main ranges:

• 40000 to 49999 External Income

• 50000 to 69999 External Costs

• 70000 to 74999 Internal Income

• 75000 to 75999 Internal Costs

• 80000 to 89999 Secondary Transfers

Cost Element Groups

• Cost elements can be combined into groups of the same type

• Used to create reports

• Standard reporting group REP_01

• Displays costs within main University budget headings

Example

• KAH3 - Display cost element group

Cost Centre Structures (1)

Standard hierarchy

• Tree structure containing all cost centres

• Reflects University accounting structure

• Core activities - DC

• Other services - DS

• Restricted funds - OR

• Endowment funds - EN

• Research awards - RG

Cost Centre Structures (2)

Department Codes

• AUVI - Media Services

• CSER - Careers

• INSS - ISS

• LACE - Language Centre

• LIBR – Library

Example: DC-RC-LIBR – Library core activities

Cost Centre Structures (3)

AcademicServices

Library CareersISS

381513SAP Support

381652SAP Projects

• Can report on individual cost centres or groups of cost centres

Alternative cost centre groups

Cost Centre Structures (4)

Examples

• OKENN - Display cost centre standard hierarchy

• KSH3 - Display cost centre group

Internal Orders

• Cost object used to monitor costs at a detailed level

• Eight digit number e.g. 95000001

• Linked to cost centre – provides sub-analysis

• Simplifies cost centre structure

• Used to track costs of individual activities e.g. projects, short courses

The Internal Order/ Cost Centre relationship

78500001Internal Order

78500002

Internal Order

78500003Internal Order

278520COST CENTRE

Many to One Relationship

Internal Order Groups

• Orders can be grouped into a structure

• Many levels as required

• Maintained by departments – no standard hierarchy

• Used for planning and reporting

Internal Orders

RC_HECS

TEACHING RESEARCH OTHER

78515000 78515001 78515002Internal Orders

Internal

Order

Groups

TEACHINGDIRECT

TEACHING OTHER

Internal Orders

Examples

• KO03 - Display internal order master data

• KOH3 - Display internal order group

Reports

• Cost centre reports

• Internal order reports

• Report navigation

• Printing reports

• Exporting to Excel