SAP ERP Finance & Controlling Solutions

Financial AccountingScope items

AccountingGeneral Ledger Accounting

Supports the accounting requirements of an organization by providing a complete record of all business transactions and financial reporting for multiple accounting standards.

Accounts Receivableis an integral part of bookkeeping which helps manage transactions with customers and company

business partners, and is an integral part of sales processes.Accounts Payable

is an integral part of bookkeeping which helps manage transactions with vendors and company business partners, and is an integral part of purchasing processes.

Period-End Closing in Financial AccountingIncludes those processes required to close the books and prepare financial reports; accruals and

reversals, foreign currency revaluations; balance confirmations with customers and vendors.Cash Management

Covers a number of functions, including determination of liquidity based on bank account balances (cash position) and open receivables and payables (liquidity forecast) and more.

Asset Accounting Manages and supervises fixed assets. It serves as a subsidiary ledger to the General Ledger,

providing detailed information on transactions involving fixed assets.

Asset Acquisition for Constructed Assets (Investment Orders) Involves the accumulation of costs during the building or construction of fixed assets and the

capitalization of costs at the completion of construction.

Cost of Sales Accounting Compares the sales revenues for an accounting period with the costs involved in the production of

the sold products.

Activate Document Splitting Enables you to assign one or more segments (e.g. cost/profit centers) to financial postings for

current or future managerial reporting needs, and is a prerequisite for Segment Reporting.

Accounting (Contd)

Segment Reporting Provides a breakdown of data in financial statements by individual enterprise areas such as

divisions, or geographical areas.

Key process flows coveredPost GL account documentsReverse GL account documentsDisplay Document JournalDisplay GL account balances (list)Post recurring entriesPost accrualsRun foreign exchange/currency revaluationAccount Maintenance: manual clearingAccount Maintenance: automatic clearingExecute Tax AccountingCreate account statementsUse legal reporting

Financial AccountingGeneral Ledger (GL)

Business benefitsRecording of all business transactions ensures complete and accurate accounting dataSimplifies and accelerates faster financial closesEnsures balanced books by any dimension and reconciliation through roll-up of special-ledger postings to GLSupports legal and parallel reporting requirementsProvides real-time insight into financial figures and key performance indicators

PurposeSupports the accounting requirements of an organization by providing a complete record of all business transactions and financial reporting for multiple accounting standards.

Financial AccountingAccounts Receivable (AR)

Business benefitsEasily handles large numbers of customer invoices and credit notesThe payment program can automatically carry out direct debiting and down paymentsImproves cash flow and liquidity with an optimized receivables managementProvides real-time insight in outstanding receivables

PurposeIs an integral part of bookkeeping which helps manage transactions with customers and company business partners, and is an integral part of sales processes.

Key process flows coveredPost AR account documentsPost customer invoicesPost credit notes with invoice referenceExecute down payments clearing manuallyPost incoming payments manually and using the payment programClear open items in customer accounts manually and automaticallyProcess account statements manually and reprocess account statementExecute dunningCreate One-Time-Accounts postingsSet credit limitsDisplay open item and credit control reporting

Financial AccountingAccounts Payable (AP)

Business benefitsEasily handles large numbers of invoices and credit notesThe payment program can automatically carry out bank transfers and down paymentsImproves cash flow and liquidity with automatic payments at optimal payment time Provides real-time insight in outstanding liabilities

PurposeAccounts Payable sub-ledger is an integral part of bookkeeping which helps manage transactions with vendors and company business partners, and is an integral part of purchasing processes.

Key process flows coveredPost AP account documentsPost down payment requestPost vendor invoicesClear open items manually and automaticallyPost down payments using the payment program Post outgoing payments manually and using the payment programPost payments and create payment medium using the payment program

Financial AccountingPeriod-End Closing in Financial Accounting

PurposeIncludes those processes required to close the books and prepare financial reports; accruals and reversals, foreign currency revaluations; balance confirmations with customers and vendors.

Key process flows coveredExecute day-end closingExecute month-end closingExecute year-end closing

Business benefitsSystem supports in creating the balance sheets and profit and loss statements System supports in documentation of posting dataSimplifies and accelerates financial closings through automation

Financial AccountingCash Management (CM)

PurposeCash Management covers a number of functions, including determination of liquidity based on bank account balances (cash position) and open receivables and payables (liquidity forecast) and more.

Key process flows coveredAnalyze CM statusExecute cash concentration

Business benefitsTransfers all cash-relevant information from internal and external sources into CM quickly and reliably (inbound data) Performs analysis and reporting of current and future cash flows to support CM decisions (analysis and decision)Communicates with banks and other business partners based on the results of the decision process (outbound data)

Financial AccountingAsset Accounting (AA)

PurposeAsset Accounting manages and supervises fixed assets. It serves as a subsidiary ledger to the General Ledger, providing detailed information on transactions involving fixed assets.

Key process flows coveredPost asset acquisitions from purchase with vendor Post asset acquisitions with automatic offsetting entry Retire assets due to scrapping or with revenuePost asset sales without customer Post post-capitalizations Post write-upsSettle assets under construction Post down payment requests for assets under construction Execute depreciation posting run Post acquisition and production costs values Simulate depreciations and plan primary costs

Business benefitsSimplifies and accelerates financial closingsAutomatically calculates depreciation and interestsSimulates depreciation forecastCovers entire asset lifecycle and provides full integration with other ledgers and components in SAP ERP

Financial AccountingAsset Acquisition for Constructed Assets (Investment Orders)

PurposeAssets under construction involve the accumulation of costs during the building or construction of fixed assets and the capitalization of costs at the completion of construction.

Key process flows coveredCreate investment orders (with asset under construction master records)Create budgets for investment ordersRelease investment ordersPost AP invoices to investment ordersMonitor investment order progressSettle assets under constructionComplete investment orders

Business benefitsTransparent view of an asset for acquisitionEnsures automated and efficient processing

Financial AccountingCost of Sales Accounting

PurposeCost of sales accounting compares the sales revenues for an accounting period with the costs involvedin the production of the sold products.

Key process flows coveredAdd functional area in Chart of AccountsAdd functional area in posting keysAdd cost center categoriesPost GL account documents with functional areaPost customer invoicesPost vendor invoicesExecute line item reporting (cost object re-assignment) Generate balance sheets and profit and loss statements Generate Cost of Sales Accounting – profit and loss statements

Business benefitsOperating expenses are often allocated in different ways in Financial Accounting and Cost of Sales AccountingFlexible way to control the functional area by a hierarchic modelWith this type of grouping, Cost of Sales Accounting clearly identifies where costs originate in a company

Financial AccountingActivate Document Splitting

PurposeThis function enables you to assign one or more segments (e.g. cost/profit centers) to financial postings for current or future managerial reporting needs, and is a prerequisite for Segment Reporting.

Key process flows coveredActivate Document Splitting based on segments

Business benefitsReal-time postings (online)Account statements for the selected dimensions can be generated at any time with segment reportingProvides extensibility and flexibility for company-specific and industry-specific enhancementsIncreases data quality as results of the document split are visible in the document itselfSignificantly accelerates the closing process when used along with parallel accounting and many automated functions as subsequent processes like foreign-currency valuation may be executed immediately

Financial AccountingSegment Reporting

PurposeThe purpose of segment reporting is to provide a breakdown of data in financial statements by individual enterprise areas such as divisions, or geographical areas.

Key process flows coveredPost GL account documents with different segmentsAllocate segments that could not be allocated formerly at period end Generate balance sheets and profit and loss statements Generate Cost of Sales Accounting profit and loss statementsGenerate AR and AP by segments

Business benefitsAccount statements for the selected dimensions can be generated at any time with segment reporting

Controlling

Scope items

Controlling

General Cost Center Planning The managers of non-operational cost centers, such as sales, marketing, administrative,

research and development, plan the costs for various cost types or elements for their respective cost centers.

Internal Order for Research and Development Planning Involves entering costs, activities and business processes that is incurred during the life

cycle of an order. Can compare plan and actual costs and perform a differentiated variance analysis.

Internal Order for Marketing Expenses and Other Overhead Planning Internal orders are used to plan, collect, and settle costs for projects like marketing

campaigns or other internal projects.

Overhead Cost Accounting Actual The purpose of overhead cost controlling is the planning, allocation, control, and

monitoring of overhead costs.

Internal Order for Research and Development Actual Internal orders are used to monitor costs and provide cost control for an organization, and

are the most detailed operational level of cost controlling.

Internal Order for Marketing Expenses and Other Overhead Actual Internal orders are used to plan, collect, and settle costs for projects like marketing

campaigns or other internal projects.

ControllingGeneral Cost Center Planning

PurposeThe managers of non-operational cost centers, such as sales, marketing, administrative, research and development, plan the costs for various cost types or elements for their respective cost centers.

Key process flows coveredCheck cost center master data Check version validity for current budget period Copy previous year actuals or budgetsExecute transfer of planned depreciations from assets Set planner profile Download cost elements to MS Excel for income and expenses budgetsUpdate budget values for income and expenses excluding operations Upload cost elements for income and expenses excluding operations Plan accrual costs and statistical key figures, and execute plan assessmentsConfirm non-operating cost center budgetsCopy AOP version to actual version 0 and lock both versions for planning

Business benefitsAllows comparison of planned and actual costs and monitoring of costs on cost centers

ControllingInternal Order for Research and Development Planning

PurposeInvolves entering costs, activities and business processes that is incurred during the life cycle of an order. Can compare plan and actual costs and perform a differentiated variance analysis.

Key process flows coveredCreate Research and Development internal ordersSet planner profile Plan costs for Research and Development internal ordersSettle planned costs for Research and Development internal ordersConfirm correct settlement Execute internal order reporting

Business benefitsAllows comparison of planned and actual costs on internal orders and monitoring of costs and order status

ControllingInternal Order for Marketing and Other Overhead Planning

PurposeInternal orders are used to plan, collect, and settle costs for projects like marketing campaigns or other internal projects.

Key process flows coveredCreate internal ordersPlan cost elements for internal ordersSettle internal orders with planned costs

Business benefitsEnables tracking of planned and actual costs of these projects for various purposes such as cost control, return on investment calculations, tax reporting and so on

Controlling Overhead Cost Accounting Actual

PurposeInternal orders are used to plan, collect, and settle costs for projects like marketing campaigns or other internal projects.

Key process flows coveredProcess GL account documents for various purposesPlan costs for various cost elements for cost centersAssess shared expensesRecord statistical key figuresAnalyze planned and actual figuresSettle internal ordersExecute necessary steps for preparation of periodic and year-end activities

Business benefitsProvides a transparent view for an account of a cost centerHelps to plan, control, and monitor cost behavior Increases cost-consciousness Provides various analyses of variances, such as volume, price, input, and quantity variance Supports decision-making to improve profitability

ControllingInternal Order for Research and Development Actual

PurposeInternal orders are used to monitor costs and provide cost control for an organization, and are the most detailed operational level of cost controlling.

Key process flows coveredCreate Research and Development internal ordersExecute consumable purchasingPost goods issues to Research and Development internal ordersSettle Research and Development internal orders

Business benefitsProvides a transparent view of outstanding orders, shipments, and inventory Enables automated and efficient processing

ControllingInternal Order for Marketing and Other Overhead Actual

PurposeInternal orders are used to plan, collect, and settle costs for projects like marketing campaigns or other internal projects.

Key process flows coveredCreate internal ordersSettle internal orders based on actual costs

Business benefitsEnables tracking of planned and actual costs of these projects for various purposes such as cost control, return on investment calculations, tax reporting, and so on

Analytics

Scope items

AnalyticsSAP ERP Reports for Accounting

PurposeThese top SAP ERP reports meet the legal and management reporting needs.

Key process flows coveredExecute GL Accounting reportingExecute fixed Asset Accounting reportingExecute Cost Element Accounting reportingExecute Cost Center Accounting reportingExecute internal order reportingExecute product costing reportingExecute Profitability Analysis reportingExecute Information System: (actual) costs, revenues, expenditures, receipts

Business benefitsProvides direct access to information helping to get broader visibility across all areas of the businessLets you uncover business opportunities and anticipate risksProvides you with an understanding of how different business drivers impact financial and operational performance