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SAP FICO COURSE

INTRODUCTION TO SAP R/3

INTRODUCTION TO SAP R/3

Introduction to ERP, Advantages of SAP over other ERP Packages

Introduction to SAP R/3 FICO

FINANCIAL ACCOUNTING BASIC SETTINGS:

Definition of company

Definition of company code

Assignment of company to company code

Definition of business area

Definition of fiscal year variant

Assignment of fiscal year variant to company code

Definition of posting period variant

Assignment of posting period variant to company code

Open and close posting period

Defining document type & number rangesMaintenance of field status variants

Assignment of field status variant to company code

Definition of tolerance groups for GL accounts

Definition of tolerance groups for employees

Assignment of tolerance groups to users

Taxes on Sales & Purchases (input & output)

Creation of chart of Accounts

Defining Accounts Groups

Defining Retained Earnings Account.

GENERAL LEDGER ACCOUNTING:

Creation of General Ledger Master (with and with out reference)Display/Change/Block/Unblock of general ledger master

Document Entry posting normal postings and posting with reference

Display and change of documents

Display of GL balances

Display GL account line items

Parked documents

Hold documents

Creation of Sample Document and postings with sample documents

Defining recurring entry document and postings with recurring doc.

Creation of account assignment model and posting

Configuration of line layouts for display of GL line items

Reversal of individual documents, mass reversal , reversal of cleared items and reversal of accrual and

deferral documents

Defining Exchange Rate types and Translation ratios

Define Exchange rates & posting of foreign currency transactions

Interest calculations on term loans

Accrual and Deferral documents

ACCOUNTS PAYABLE

Creation of vendor account groups

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creation of number ranges for vendor master records

assignment of number ranges to vendor account groups

Creation of tolerance group for venders

Creation of vendor master (display/change/block/unblock of vender master)

Posting of vendor transactions (invoice posting, payment posting, credit memo)

Settings for advance payments to parties (down payment) and clearing of down payment against

invoices (special GL transactions)

Posting of partial Payment & Residual Payment

Creation of payment terms,

Creation of house banks and account ids.

Creation of check lots and maintenance of check register

display check register

cancellation of un issued checks

creation of void reasons

cancellation of issued checks

posting of purchase returns

Configuration of automatic payment program

Payment to vendors through APPDefining correspondence & party statement of accounts

ACCOUNTS RECEIVABLE:

Creation of customer account groups

creation of number ranges for customer master records

assignment of number ranges for customer account groups

Creation of tolerance group for customers

Creation of customer master (display/change/block/unblock of vender master)

Posting of customer transactions (sales invoice posting, payment posting, debit memo)

Settings for advance payment from parties (down payment)

Configuration of settings for dunning

generating the dunning lettersdefining correspondence and party statement of accounts

Bills of exchange

posting of sales returns

ASSET ACCOUNTING

Defining chart of depreciation

creation of 0% tax codes for sales and purchased

assignment of chart of depreciation to company code

Defining account determination

definition of screen lay out rules

definition of number ranges for asset classes

Integration with General Ledger & Posting rules

Defining Depreciation key

definition of multilevel methods

definition of period control methods

creation of main asset master records

creation of sub asset master records

Acquisition of fixed assets

sale of fixed assets

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transfer of assets

Scrapping of assets,

Depreciation run

Line item Settlement of assets under construction of capital work in progress

NEW GENERAL LEDGER ACCOUNTING:

Parallel ledgers

document splitting

Segments.

REPORTS

1.Financial statement version

General Ledger, Accounts Payable, Accounts Receivable and Assets Reports

CONTROLLING

BASIC SETTINGS FOR CONTROLLING

Defining Controlling Area

Defining Number ranges for Controlling Area

Maintain Planning Versions

COST ELEMENT ACCOUNTING:

creation of primary cost elements from financial accounting areacreation of primary cost elements from controlling area

display of cost element master records

change cost element master records

primary cost element categories

secondary cost element categories

default account assignments

COST CENTER ACCOUNTING

Defining Cost Center Standard Hierarchy

Creation of Cost Centers and cost center groups

display cost center master records

change cost center master recordscreation of cost center groups

posting to cost centers

reposting of co line items

Repost of Costs

planning for cost centers

Overhead Calculation

creation of secondary cost element master records

Creation and Execution of Distribution Cycle

creation and execution of assessment cycles

cost center reports

Internal Orders

Defining order types

Creation of internal order master records

display internal order master records

change internal order master records

postings to internal orders

planning for internal orders

reposting co line items for internal orders

repost of costs for internal orders

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Report of Variance analysis for internal orders

creation of real internal orders

posting of business transaction to real orders

definition of allocation structures

definition of settlement profiles

definition of planning profiles

settlement of real internal orders

budgeting and availability control

maintain number ranges for budgeting

define tolerances for availability control

specification of exempt cost elements from availability control

maintenance of budget manager

PROFIT CENTER ACCOUNTING

Basic Settings for Profit Center Accounting

Creation of Dummy Profit Centers

maintenance of control parameters for actual postings

Maintaining planning versions for profit centers

maintaining the number ranges for profit center documentsCreation of profit center master records

display of profit center master records

changing the profit center master records

Creation of revenue cost elements

Automatic Assignment of Revenue elements for Profit Centers

assignment of profit centers in cost center master records

creation of account groups in profit center accounting for planning

planning for profit and loss account items

planning for balance sheet items

posting of transactions into profit centers

generating the variance reports for profit and loss account itemsGenerating the variance reports for balance sheet items.

Profitability analysis

Maintaining the operating concern

Define profitability segment characteristics

Assignment of controlling area to operating concern

Activating the profitability analysis

Define number ranges for actual postings

Mapping of SD conditions types to COPA value fields

Creation of reports

Viewing the reports

PRODUCT COSTING:

PRODUCT COST PLANNING:

creation of bill materials

creation of activity type master records

planning for activity hours

activity type price calculation

creation of work center master records

creation of routings

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defining cost sheet( over head structures)

assignment of cost sheet to costing variant

creation of cost estimate with quantity structure

marking

releasing

creation of cost estimate without quantity structure

INTEGRATION

Integration of financial accounting with materials management:

Definition of organizational units in materials management i.e. plant, storage location and purchase

organization

Assignment of organizational units to each other

Definition of tolerance groups for purchase orders

Definition of tolerance groups for goods receipt

Definition of tolerance groups for invoice verification

Definition of vendor specific tolerances

Creation, display and change of material master recordsCreation of plant parameters

Maintenance of posting periods for materials management

Maintenance of parameters for invoice verification

Maintenance of plant parameters for inventory management and physical inventory

Definition of attributes for material types

Assignment of GL accounts for material transactions in financial accounting

(Integration of MM with FI)

Creation of purchase order, posting of goods receipt, invoice verification and

Goods issue for production

INTEGRATION OF FINANCIAL ACCOUNTING WITH SALES AND DISTRIBUTIOIN:

Definition of sale s organizationdefinition of distribution channels

definition of divisions

assignment among various organizational units in SD

definition of partner functions

definitions of shipping point and loading points

definition of pricing procedures

determining the shipping points

determining the pricing procedures

maintenance of SD condition types

maintenance of condition records

assignment of GL accounts for sales transactions( integration of FI with SD)

creation of sales order

initialization of stock

posting the delivery of goods

creating the sales invoice

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Client: In commercial, organizational and technical terms, a self-contained unit in an R/3System with separate master records and its own set of tables.

Company Code: The smallest organizational unit of Financial Accounting for which acomplete self-contained set of accounts can be drawn up for purposes of external reporting.

Business Area: An organizational unit of financial accounting that represents a separatearea of operations or responsibilities within an organization and to which value changesrecorded in Financial Accounting can be allocated.

Enterprise structure: A portrayal of an enterprise's hierarchy. Logical enterprise structure,including the organizational units required to manage the SAP System such as plant or costcenter.

Social enterprise structure, description of the way in which an enterprise is organized, in

divisions or user departments. The HR application component portrays the social structureof an enterprise

fiscal year variant: A variant defining the relationship between the calendar and fiscalyear. The fiscal year variant specifies the number of periods and special periods in a fiscalyear and how the SAP System is to determine the assigned posting periods.

Fiscal Year: A period of usually 12 months, for which the company produces financialstatements and takes inventory.

Annual displacement/Year shift: For the individual posting periods various entries maybe necessary. For example, in the first six periods the fiscal year and calendar year maycoincide, whereas for the remaining periods there may be a displacement of +1.

Chart of Accounts: Systematically organized list of all the G/L account master records that

are required in a company codes. The COA contains the account number, the account nameand control information for G/L account master record.

Financial statement version: A hierarchical positioning of G/L accounts. This positioningcan be based on specific legal requirements for creating financial statements. It can also bea self-defined order.

Account group: An object that attributes that determine the creation of master records.

The account group determines: The data that is relevant for the master record A numberrange from which numbers are selected for the master records.

Field status group: Field status groups control the additional account assignments and

other fields that can be posted at the line item level for a G/L account.

Posting Key: A two-digit numerical key that determines the way line items are posted. Thiskey determines several factors including the: Account type, Type of posting (debit orcredit),Layout of entry screens .

Open item management: A stipulation that the items in an account must be used to clear

other line items in the same account. Items must balance out to zero before they can becleared. The account balance is therefore always equal to the sum of the open items.

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Clearing: A procedure by which the open items belonging to one or more accounts areindicated as cleared (paid).

Reconciliation account: A G/L account, to which transactions in the subsidiary ledgers(such as in the customer, vendor or assets areas) are updated automatically.

Special G/L indicator: An indicator that identifies a special G/L transaction. Special G/Ltransactions include down payments and bills of exchange.

Special G/L transaction: The special transactions in accounts receivable and accountspayable that are shown separately in the general ledger and sub-ledger.

They include:

Bills of exchange Down payments Guarantees

House Bank: A business partner that represents a bank through which you can processyour own internal transactions.

Document type: A key that distinguishes the business transactions to be posted. Thedocument type determines where the document is stored as well as the account types to beposted.

Account type: A key that specifies the accounting area to which an account belongs.

Examples of account types are:

Asset accounts

Customer accounts Vendor accounts G/L accounts

Dunning procedure: A pre-defined procedure specifying how customers or vendors aredunned.

For each procedure, the user defines

Number of dunning levels

Dunning frequency

Amount limits

Texts for the dunning notices

Dunning level: A numeral indicating how often an item or an account has been dunned.

Dunning key: A tool that identifies items to be dunned separately, such as items you arenot sure about or items for which payment information exists.

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Year-end closing: An annual balance sheet and profit and loss statement, both of whichmust be created in accordance with the legal requirements of the country in question.

Standard accounting principles require that the following be listed:

All assets

All debts, accruals, and deferrals All revenue and expenses

Month-end closing: The work that is performed at the end of a posting period.

Functional area: An organizational unit in Accounting that classifies the expenses of anorganization by functions such as:

Administration Sales and distribution

Marketing

Production

Research and development

Classification takes place to meet the needs of cost-of-sales accounting.

Noted item: A special item that does not affect any account balance. When you post a

noted item, a document is generated. The item can be displayed using the line item display.Certain noted items are processed by the payment program or dunning program - forexample, down payment requests.

Accrual and deferral: The assignment of an organization's receipts and expenditure toparticular periods, for purposes of calculating the net income for a specific period.

A distinction is made between:

Accruals -

An accrual is any expenditure before the closing key date that represents an expense forany period after this date.

Deferral -

Deferred income is any receipts before the closing key date that represent revenue for anyperiod after this date.

Statistical posting: The posting of a special G/L transaction where the offsetting entry ismade to a specified clearing account automatically (for example, received guarantees of

payment).

Statistical postings create statistical line items only.

Valuation area: An organizational unit in Logistics subdividing an enterprise for thepurpose of uniform and complete valuation of material stocks.

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Chart of depreciation: An object that contains the defined depreciation areas. It also

contains the rules for the evaluation of assets that are valid in a specific country or

economic area. Each company code is allocated to one chart of depreciation. Severalcompany codes can work with the same chart of depreciation. The chart of depreciation andthe chart of accounts are completely independent of one another.

Asset class: The main criterion for classifying fixed assets according to legal andmanagement requirements.

For each asset class, control parameters and default values can be defined for depreciation

calculation and other master data.

Each asset master record must be assigned to one asset class.

Special asset classes are, for example:

Assets under construction

Low-value assets

Leased assets Financial assets Technical assets

Depreciation area: An area showing the valuation of a fixed asset for a particular purpose

(for example, for individual financial statements, balance sheets for tax purposes, ormanagement accounting values).

Depreciation key: A key for calculating depreciation amounts.

The depreciation key controls the following for each asset and for each depreciation area:

Automatic calculation of planned depreciation Automatic calculation of interest Maximum percentages for manual depreciation

The depreciation key is defined by specifying:

Calculation methods for ordinary and special depreciation, for interest and for the

cutoff value Various control parameters

Period control method: A system object that controls what assumptions the systemmakes when revaluating asset transactions that are posted partway through a period.

Using the period control method, for example, you can instruct the system only to startrevaluating asset acquisitions in the first full month after their acquisition.

The period control method allows different sets of rules for different types of assettransactions, for example, acquisitions and transfers.

Depreciation base: The base value for calculating periodic depreciation.

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The following base values are possible, for example:

Acquisition and production costs

Net book value Replacement value

Controlling Terms

Controlling Area: An organizational unit within a company, used to represent a closed

system for cost accounting purposes. A controlling area may include single or multiple

company codes that may use different currencies. These company codes must use the sameoperative chart of accounts.

Cost center std Hierarchy : Indicated hierarchy of cost center groups in which all costcenters in a controlling area are gathered together.

Cost element : A cost element classifies the organization's valuated consumption ofproduction factors within a controlling area. A cost element corresponds to a cost-relevant

item in the chart of accounts.

Primary cost element: A cost element whose costs originate outside of CO and accrualcosts that are used only for controlling purposes

Secondary cost element: A cost element that is used to allocate costs for internalactivities. Secondary cost elements do not correspond to any G/L account in FinancialAccounting. They are used only in Controlling and consequently cannot be defined in FI as

an account.

Cost element category: The classification of cost elements according to their usage ororigin.

Examples of cost element categories are:

Material cost elements Settlement cost elements for orders

Cost elements for allocating internal activities

Reconciliation ledger: A ledger used for summarized display of values that appear in

more detailed form in the transaction data.

The reconciliation ledger has the following functions:

o Reconciles Controlling with Financial Accounting: The reconciliation ledgerprovides reports for monitoring the reconciliation of Controlling with Financial

Accounting by account.

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o It can identify and display value flows in Controlling across company code,functional area, or business area boundaries

o Provides an overview of all costs incurred : Reconciliation ledger reports

provide an overview of the costs and are therefore a useful starting point for

cost analysis. For example, an item in the profit and loss statement from the

Financial Information System (FIS) can be examined in the reconciliationledger reports with respect to the relevant costs. For more detailed analysis,

reports from other components within Controlling can be accessed from thereconciliation ledger reports.

Cost Center: An organizational unit within a controlling area that represents a definedlocation of cost incurrence.

The definition can be based on:

Functional requirements

Allocation criteria

Physical location

Responsibility for costs

Cost center category: An attribute that determines the type of cost center.

Example

F - Production cost center H - Service cost center

Controlling area: An organizational unit within a company, used to represent a closedsystem for cost accounting purposes.

A controlling area may include single or multiple company codes that may use differentcurrencies. These company codes must use the same operative chart of accounts.

All internal allocations refer exclusively to objects in the same controlling area.

Statistical key figure: The statistical values describing:

Cost centers

Orders

Business processes Profit centers

There are the following types of statistical key figures:

Fixed value - Fixed values are carried forward from the current posting period to all

subsequent periods.

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Total value -

Totals values are posted in the current posting period only

Activity type: A unit in a controlling area that classifies the activities performed in a costcenter.

Example

Activity types in production cost centers are machine hours or finished units.

Allocation cost element : A cost element used to illustrate activity allocation in terms ofvalues. The allocation cost element is a secondary cost element , under which theactivity type or business process is allocated.

The allocation cost element is the central characteristic used in all CO postings. It is

therefore also an important criterion for reporting - for example, many reports arestructured according to the posted cost elements.

Assessment cost element: A secondary cost element for costs that are assessed betweenControlling objects.

Reposting: A posting aid in which primary costs are posted to a receiver object under theoriginal cost element (the cost element of the sender object).

Repostings are used to rectify incorrect postings. The following methods are available:

Transaction-based reposting -

Each posting is made in real time during the current period.

Periodic reposting -

Produces the same results as transaction-based reposting. The costs being transferred arecollected on a clearing cost center and then transferred at the end of the period according toallocation bases defined by the user.

Distribution: A business transaction that allocates primary costs.

The original cost element is retained in the receiver cost center.

Information about the sender and the receiver is documented in the Controllingdocument.

Assessment: A method of internal cost allocation by which you allocate the costs of a

sender cost center to receiver CO objects (such as orders and other cost centers) using anassessment cost element.

The SAP System supports the following:

Hierarchical method (where the user determines the assessment sequence)

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Iterative method (where the SAP System determines the sequence of assessmentusing iteration).

Example:

The costs from the cafeteria cost center could be assessed based on the statistical key

figure "employee", which was set up on the receiver cost center.

Receiver cost center I has 10 employees, receiver cost center II has 90. The costs of the

cafeteria cost center would be transferred (assessed) to receiver cost center I (10%) and

receiver cost center II (90%). The credit on the cafeteria cost center and the debit of thetwo receiver cost centers are posted using an assessment cost element. Depending on thesystem setting, the total costs or some of the costs for the cafeteria cost center would be

Internal order: An instrument used to monitor costs and, in some instances, the revenues

of an organization.

Internal orders can be used for the following purposes:

Monitoring the costs of short-term jobs

Monitoring the costs and revenues of a specific service Ongoing cost control

Internal orders are divided into the following categories:

Overhead orders - For short-term monitoring of the indirect costs arising from jobs.

They can also be used for continuous monitoring of subareas of indirect costs.

Overhead orders can collect plan and actual costs independently of organizationalcost center structures and business processes, enabling continuous cost control inthe enterprise.

Investment orders - Monitor investment costs that can be capitalized and settled tofixed assets.

Accrual orders - Monitor period-based accrual between expenses posted in FinancialAccounting and accrual costs in Controlling.

Orders with revenues - Monitor the costs and revenues arising from activities forpartners outside the organization, or from activities not belonging to the corebusiness of the organization.

Order type: A tool that categorizes orders according to purpose.

The order type contains information which is necessary for managing orders. Order typesare client-specific. The same order type can be used in all controlling areas in one client.

Example

Production orders

Maintenance orders

Capital investment orders

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Marketing orders

Cost of sales accounting: A type of profit and loss statement that matches the salesrevenues to the costs or expenses involved in making the revenue (cost of sales).

The expenses are listed in functional areas such as:

Manufacturing

Management

Sales and distribution Research and development

Cost of sales accounting displays how the costs were incurred. It represents the economicoutflow of resources.

What is the meaning of SAP FICO Functional and SAP FICO Technical?

SAP FICO Functional means functional knowledge, by which one can proceed in terms of

functional process with FICO area as well as FICO configuration knowledge.

Whereas SAP FICO Technical consultant may be an ABAPER, who have short of knowledge of

FICO configuration and functional knowledge as well and can proceed for technical jobs e.g.

reports development, client requirement, system modification etc.

To become a Pure Hard Core FI functional consultant

Q: Can via T.Code FBL1N by selecting vendor with plant reference in selection using

search help field group.

Plant is not a field for finance or in sap it is FI module - this is for PP and MM module, In case

required, please define that as FI object for FI reports - like BA and so on. Configure the plant as

a BA and in all FI places you can capture BA in line items of vendors.

Spent little time on going through various standard reports of SAP which are very rich in itself -

for each report it has options of all fields of master data , all fields of FI document means around

in my opinion around 400+ options to select. Hence we should first get an idea of fields in

masters and documents and how they are updated.

To become a good consultant.... Every report of SAP standard is a gem - but we always look

for FAST FOOD without understanding the quality of how standard is the solutions..

Spent time in understanding - there are lot of chapters available for reading . Suggestions ...

Understand the Finance function first upto closing of books and management reportings done in

a practical way. Go to sap img screen - you will find all options are there... If you go reverse way

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, sitting inside the car and asking - anyone can help me in understanding what is the wheel in

front of driver used and how to use it??