8 Review Material Management-Questionnaire OS-MM-000.
12
10 Review Financial Reporting Questionnaire OS-FI-010 and Managerial Accounting and Reporting Questionnaire OS-CO-000. The Financial Accounting(FI) application in SAP records all movements of goods and services and all other business transactions between the company and its customers and vendors. The FI module represents from an accounting perspective a company’s general ledger. The controlling module is where all management reporting is performed in SAP. In controlling you are able to slice and dice your company up in many different ways to fulfill different management objectives. The controlling module in SAP supports: cost center accounting, internal order accounting, project accounting, product costing, profit center accounting, and profitability analysis. Both the information stored in the financial module and the controlling module comprise the population of data from which financial and managerial reporting will be derived. Both modules data are updated through either transaction postings which originated in SD and MM or can be directly updated through transactions in Accounts Receivable, Accounts Payable, and GL. For example, you may receive an invoice from SAP for consulting services for which an original purchase order was recorded under the procurement system.When the invoice is posted in SAP, the Vendor SAP will be credited and the following could be updated under the Financial and Controlling Module G/L Account called Professional Fees - Consulting (FI) Project called SAP Installation (CO) Cost Center called Internal Systems (CO) Profit Center called Internet
18 A company is an independent legal accounting unit within a client. It is the only hierarchical element in SAP that must represent a true legal entity. The legal requirements of a balance sheet and profit and loss statement are fulfilled on the company code level. The balance sheet has a complete shareholder equity section. At the moment of entering a transaction, all debits must equal all credits at the company level. Thus, you are guaranteed a balanced set of books. Multiple company codes can be set up for each client, thus enabling accounting data to be managed simultaneously for several independent companies.
20
25 This is the systematic listing of all G/L account master records that are required in one or several company codes. This is the G/L accounts to which all postings will be made. Thus, when a document is entered, the user would use an account number in the operational chart of accounts. The G/L account in SAP can have a maximum of a 10 digit code and it traditionally represents what most organizations refer to as the natural account. For example, travel expense, sales revenue, etc. SAP does not embed in the G/L account the management reporting structures(i.e. cost centers, job order, divisions, regions, etc.) Most other systems embed the management reporting structures (like cost center, job order, division, regions) in the account code. This means that they have hardcoded their management hierarchies within the chart of accounts . This makes hierarchy reorganisations difficult and management reporting inflexible. In SAP, the managerial coding block(department, profit center, etc.) is defined under the Controlling module.