SAP FI and Controlling Overview

7/27/2019 SAP FI and Controlling Overview

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Copyright IBM Corporation 20031

SAP R/3

F inancial Accounting & Controll ing


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Financials and controlling

SAP has two distinct modules to handle the financial and management reporting

for an enterprise

FI Module (Financial Module)

CO Module (Controlling Module)


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SAP - FI Module

The Financial Accounting (FI) application component of SAP fulfills all the

requirements that must be met by the financial accounting department of an

organization.

The Financial Accounting module of SAP supports reporting to External bodies

and stakeholders.


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SAP - Controlling Module

Controlling provides information for management decision-making. It facilitates

coordination, monitoring and optimization of all processes in an organization.

Apart from documenting actual events, it also provides for variance analysis

comparing actual with budgets.

Controlling (CO) and Financial Accounting (FI) are independent components in

the SAP system. All data relevant to cost flows automatically to controlling

module from Financial Accounting.


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Record, Recognize, & ReportAccurate and Timely FinancialStatements- General Ledger

- Financial Statements- Accounts Receivable / Payable

- Fixed Assets

mySAP Financials - Accounting


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Account and Document Analysis

Drill down

Line layout can bepersonalized

Account Totals

Single Items

Explanation of document using: Proof of origin Complete document

environment Link to optically archived

original

Document Overview


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Balance Sheet / Profit and Loss StatementDiverse list layout

Navigation

Any number ofhierarchies

Conversion to otherformats



Accounting

Controlling

Integrated Accounts Payable Accounting Process Steps

Payment Cashedchecks

Purchasereq.comm.

Provision.actual

Purchasing

Purchaseorder

Invoicereceipt/parking

Purchaseorder comm.

Actual

Vendor /Release/

Gen.Ledger

Generalledger

GoodsreceiptPurchasereq.



Accounting

Controlling

Reminder PaymentCreditreview

Customer

Gen. ledger

Profitabilityaccounting

Integrated Accounts Receivable Accounting Process Steps

Sales and Distrib.Incoming

orders

Goods

issue Billing

Credit rev.

Gen. ledger



Accounts Receivable

Real-time integration with General Ledger

Consolidation of Receivables across regions

Work lists to enquire on balances of multiple customers

Control account cannot be posted to in other modules ensuring reconciliation

with the General Ledger

Flexible credit control

Tracking of bank guarantees and other statistical postings; advances and

security deposits

Management of one-time-accounts



Useful Lifeof the Asset

Fixed AssetLife Cycle

Capital InvestmentPlanning

ReplacementAcquisition

Asset Procurement

Fixed Asset Life Cycle

A t M t I t t M t


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Planning andBudgeting

Investment proposals

Planned costsAnnual budget

Approved budget

Active availability control

Realization

Projects

OrdersPlanned/actual

commitments

Settlement

Investmentproposal

Budgetingand planning

Investment Activation andconclusion

Asset Management Investment Management


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Assets at a Glance: Asset Explorer

Overview of all valuationareas

Reference to relatedobjects

Complete analysis ofperiod and annual values

Link to asset master

record

Link to depreciationcalculation


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SAP BW

Document Database

Correlations in Accounting

Controlling

Cost center

Project

Profitability analysis

Internal order

Consolidation

Vendor

Customer

HumanResources

Fixed Assets

Material

Subsidiary

Ledger


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SAP R/3 - Controll ing


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EC-PCA

ProfitCenterAccounting

CO

FinancialAccounting

FI

Internal AccountingCost Accounting

Management AccountingFlexibility

Tax

audit

External AccountingFinancial StatementsLegal Requirements

Controlling

Financial & Cost Accounting: External v/s Internal


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ProfitabilityAnalysis

Business

Unit

Profits

PCA

Market

Segment

Report ing

PA

ProductCosting

Components of Controlling

Overhead CostControlling

CostCenters

Internalorders

Different Methods

Mass Process Make to order Cost of Period

Cost of sales

Controlling


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CO Components and Value Flows

Product CostControlling

Profitability Analysis

ProfitCenter

Accounting

HumanResources

Profitabilitysegment

Financial

AccountingAsset

RevenuesFI

S&DMaterials

Management

Expense

Overhead Cost Controlling

Cost centers

Activitytypes

Salesorders

Projects

Warehouseproduction

Internalorders

Materialvaluation

Cost Element Accounting

Production

COPA

COOM

COCEL

EC-PCA

COPC

HR MM SDPP


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Overview of CO Components

Overhead Cost Controlling:

Cost Center Accounting

Internal Orders

Product Cost Controlling:

Product Cost Planning

Cost Object Controlling

Actual Costing/Material Ledger

Profitability Accounting


Profit Center Accounting


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Overhead Cost Controll ing


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Overhead Cost controlling

Overhead Cost Controlling component enables you to plan, allocate, control,and monitor overhead costs

Planning in the overhead area, you can control costs and evaluate plan

against actual overhead costs

All overhead costs are assigned to the cost centers where they were incurred,

or to the jobs that triggered them, in the financials module and is posted in the

controlling module automatically.


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Product CostControlling

ProfitCe

nterAccounting


Internal

orders

COPC

COOM

COPA

EC-PCA

Transaction-based postings

- internal cost allocations

- activity allocations- planning of costs

- plan/actual comparisons

- actual/actual comparisons


Cost Element Accounting


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Cost Center Accounting

Detail monitoring of cost.

Assigning costs to cost centers lets you determine where costs where they

were incurred .

If you plan costs at cost center level, you can check cost efficiency at the point

where costs are incurred. ( Actual Vs Plan)

Prepares base data to valuate semi-finished and finished products in Product

Cost Controlling (CO-PC), and to calculate contribution margins in ProfitabilityAnalysis (CO-PA).


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PrimaryCost

Element

G/LAccount

FI COAutomaticInterface

Primary Cost Elements

Expenses


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Cost Center Hierarchy

Company

Region - North Region - Central

Cost Center 1Cost Center 2Cost Center 3.

Division

Region - East Region - West Region - South

Division Division Division Division Division Division Division

CC Group 1 CC Group 1 CC Group 1

Cost Center 4

Cost Center 5

Cost Center 6

.

CC Group 4 CC Group 5 CC Group 6


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Internal Orders

Internal orders are used to plan, collect, and settle the costs of internal jobs

and tasks.

The SAP system enables you to monitor your internal orders throughout their

entire life-cycle; from initial creation, through the planning and posting of allthe actual costs, to the final settlement


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Product Cost Controll ing


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Product Cost Controlling

OrderMaterial $Prod. Costs $OH Costs $Proc. Costs $Total ...

Plan

Debit

Actual

Variance

Periodic Actual Prices

Multiple Currencies

Overhead

Variances,

Settlement

Product Cost PlanningStandard Cost Estimate

Preliminary CostingSimultaneous Costing

Actual CostingMaterial Ledger Period-End Closing

Multilevel Material Costing

Simulation Costing

Multiple Valuations / Currencies

Standard Price


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Profitabi l i ty Analysis


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Basic Concepts of Co-PA

Value Fields

Sales Region NorthProduct Prod1Product Group Electronics

Customer Cust1Customer Grp WholesaleState IllinoisSales Rep Miller

Characteristics

Revenues 800Sales Deducs. 100Expected Frght 150COGS 650

RevenuesSales Ded.

COGS

Food Bicy. Elec.

PROD. GROUP

REG

ION

S

N

W


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Costing based Profitability Analysis

Operating

Concern

Characteristics

e.g., Market segmentsValue Fields

e.g., Sales Revenue


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Profitability Analysis -An External View

Company Market

Billing DocumentSD

Profitability AnalysisCO-PA

Key Sales Figures:Revenues, Cost of Sales...

Market Segments:Customer, Product,Product Group,Distribution Channel

CO-CO-PAPA

SD

The goal of CO-PA is to determine the p rof i tabi li ty o f m arket segments:


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PS

FI

COSD

PP

Operating concern

REGION

CharacteristicsMarket Segments

Company Code

Sales Organization

Customer

Product

Value FieldsG/L Accounts

Quantities

Revenues

Sales Deductions

Cost of Goods Sold


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Basic Report

CharacteristicValues

Key Figures

Revenue CM 1 CM 2NorthEast

South

Region

You select the desired variables, characteristics, and key figures.

The selected characteristics form the dimensionsof a multidimensional "data cube".

.

Step 1: Identify which type of report is to be created

Step 2: Select the characteristics to be analysed

Step 3: Select the key figures to be analysed

Step 4: Specify value limitations for the variables

Step 5: Select the Output type to be used to display the report

Step 6: Specify miscellaneous items, s uch as print set-up(s)and message reaction


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DetailList

Graphics

DrilldownList

Reporting


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Thank you

SAP FI and Controlling Overview

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