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What is SAP FI ?
SAP Financial Accounting (FI) is the core module where all the financial processing transactions are captured. This is the module that is used to create statutory Financials Statements for external reporting purposes.
Functions in SAP FI can primarily be divided into General Ledger Accounting (G/L), Accounts Receivable and Accounts Payable(AR/AP) processing, and Fixed Asset Accounting(AA).
What What is SAP CO ?
SAP Controlling module helps provide operational information to the management of a company to support business analysis and decision-making. CO represents the internal accounting viewpoint of an organisation. It provide information to managers to help manage costs and operations of the organization.
SAP refers External Accounting as “Financial Accounting”(SAP-FI) while Internal Accounting is referred as Managerial Accounting(SAP-CO).
what is Account Payable?
When a company orders and receives goods or services in advance of paying for them, we say that the company is purchasing the goods on account or on credit. The supplier or vendor of the goods on credit is also referred to as a creditor. If the company receiving the goods does not sign a promissory note, the vendor's bill or invoice will be recorded by the company in its liability account Accounts Payable or Trade Payables.
As is expected for a liability account, Accounts Payable will normally have a credit balance. Hence, when a vendor invoice is recorded, Accounts Payable will be credited and another account must be debited as required by double-entry accounting. When an account payable is paid, Accounts Payable will be debited and Cash will be credited. Therefore, the credit balance in Accounts Payable should be equal to the amount of vendor invoices that have been recorded but have not yet been paid.
What is a vendor?
A vendor is a person or business that supplies goods or services to a company. Another term for vendor is supplier.
In many situations a company presents the vendor with a purchase order stating the goods or services needed, the price, delivery date, and other terms. Generally, when the vendor delivers the goods or services it will also send an invoice to the company. The company should then match the vendor's invoice with its purchase order and receiving report. If the three documents are in agreement, the company can than arrange for payment to the vendor.
What is Vendor Reconciliation?
Vendor registration is the process of collecting key information from outside suppliers of goods and services and entering that information into a system to manage the relationship. The registration system used is typically electronic or Internet-based, but can be handled through a paper process. Registration is used as a threshold requirement to separate vendors who are eligible suppliers and those who are not.
What is Chart of Accounts?
A chart of accounts is a created list of the accounts used by an organization to define each class of items for which money or the equivalent is spent or received. It is used to organize the finances of the entity and to segregate expenditures, revenue, assets and liabilities in order to give interested parties a better understanding of the financial health of the entity.
What is Document Type Definition?
A Document Type Definition is a specific document defining and constraining definition or set of statements that follow the rules of the Standard Generalized Markup Language or of the Extensible Markup Language, a subset of SGML. A DTD is a specification that accompanies a document and identifies what the funny little codes are that, in the case of a text document, separate paragraphs, identify topic headings, and so forth and how each is to be processed. By mailing a DTD with a document, any location that has a DTD "reader" will be able to process the document and display or print it as intended. This means that a single standard SGML compiler can serve many different kinds of documents that use a range of different markup codes and related meanings. The compiler looks at the DTD and then prints or displays the document accordingly.
What is Field Status Variant?
Field status group is a group configured in FSV to maintain field status for G/L accounts, it controls the fields of the document posted to a particular G/L Account where the group is assigned to, eg - If G/L Account 1000 is created and document is posted to that particular account the fields of that account will appear as specified in the FSV.
What us Document Reversal?
Document reversal is useful if some transaction gets posted wrongly. In SAP we cant go back and change the transaction but to offset a wrong posted transaction we can save a different transaction with revert debit/credit entries. We don’t need to keep posting date if its in same posting period, but if its different period we have to give posting date.Important to note is Reversal of a reversed document is not possible in SAP FICO system.
What is the document of tolerance?
Tolerance document verification compares the balance of all the documents related to the posterior distributions based distribution requisition a tolerance related to a specific Chart field. Chart field background code is generally used in the process of document verification tolerance. For example, a $ 100 application has a distributing fund code 100 having a tolerance of 10 percent. If two orders against the distribution of applications, one for $ 50 and $ 75 for a second were introduced, the first purchase order spend tolerance checking documents, but the second failure would be a purchase order. In this case, the total distribution of requests against 125 USD would tolerance exceeding 10 percent. If you have the proper authority, you can replace the document control tolerance and continue processing the order.
What is Opening and Closing Period?
Open and close accounting periods to control journal entry and journal posting, as well as compute period- and year-end actual and budget account balances for reporting, accounting periods can have one of the following statuses:
Open- Journal entry and posting allowed.
Closed- Journal entry and posting not allowed until accounting period is reopened. Reporting and inquiry allowed.
Open and close accounting periods to control journal entry and journal posting, as well as compute period- and year-end actual and budget account balances for reporting, accounting periods can have one of the following statuses:
Open- Journal entry and posting allowed.
Closed- Journal entry and posting not allowed until accounting period is reopened. Reporting and inquiry allowed.
A type of document that outlines past procedures, actions or strategies as they relate to a particular activity. For example, an employee could create a reference document to outline the procedures undertaken during an infrequent activity to avoid missing steps the next time that the activity is performed.
This document explains the various steps involved to post a FI document using BAPI. This is helpful to SAP Technical consultants as it gives the details of all the required parameters and data in document posting and validation to check if the GL account in which we are posting amounts is present in SAP database. Transaction code for FI documents are FB01/FB50(Create), FB02(Change) and FB03(Display). In one document, more than 999 line item cannot be posted because BAPI can post up to 999 lines in one document. The file should be balanced for the document to be posted i.e. credit amount and debit amount should be equal. In FI, header table for document data is BKPF and line item table is BSEG.
What is Number Ranges for Various Document Types?
Defining the number ranges for sales document type when it is almost finished is part of the SAP SD consultant jobs and it becomes a headache if your company is large and there are many sales document type assign to the same internal number range. It is time consuming if you were to used transaction code and check one sales order type at a time. Furthermore, accuracy is not there.
Defining the number ranges for sales document type when it is almost finished is part of the SAP SD consultant jobs and it becomes a headache if your company is large and there are many sales document type assign to the same internal number range. It is time consuming if you were to used transaction code and check one sales order type at a time. Furthermore, accuracy is not there.
What is Account Assignment?
You specify which account assignment object is to be charged via the account assignment category such as. Which accounts are to be charged when the incoming invoice or goods receipt is posted & which account assignment data you must provide. Account assignment category is used at the time of creation of a purchase order. For normal PO no AAC is used.
What is Account Determination?
You enter the account determination key in the general master data for the asset class. The account determination key defines the reconciliation accounts in Financial Accounting that should be posted during asset transactions. This definition is effective for each chart of accounts and for each depreciation area that is defined as an automatic posting area in the respective chart of depreciation. The chart of depreciation itself is not the key criterion for account determination. This fact is important for company codes that have different charts of depreciation, but use the same chart of accounts. It is not possible to specify reconciliation accounts that are chart-of-depreciation-specific for these company codes.
You specify which account assignment object is to be charged via the account assignment category such as. Which accounts are to be charged when the incoming invoice or goods receipt is posted & which account assignment data you must provide. Account assignment category is used at the time of creation of a purchase order. For normal PO no AAC is used.
You enter the account determination key in the general master data for the asset class. The account determination key defines the reconciliation accounts in Financial Accounting that should be posted during asset transactions. This definition is effective for each chart of accounts and for each depreciation area that is defined as an automatic posting area in the respective chart of depreciation. The chart of depreciation itself is not the key criterion for account determination. This fact is important for company codes that have different charts of depreciation, but use the same chart of accounts. It is not possible to specify reconciliation accounts that are chart-of-depreciation-specific for these company codes.
What is Account Receivable?
Accounts receivable is the money that a company has a right to receive because it had provided customers with goods and/or services. For example, a manufacturer will have an account receivable when it delivers a truckload of goods to a customer on June 1 and the customer is allowed to pay in 30 days. From June 1 until the company receives the money, the company will have an account receivable (and the customer will have an account payable). Accounts receivables are also known as trade receivables.
Accounts receivable is the money that a company has a right to receive because it had provided customers with goods and/or services. For example, a manufacturer will have an account receivable when it delivers a truckload of goods to a customer on June 1 and the customer is allowed to pay in 30 days. From June 1 until the company receives the money, the company will have an account receivable (and the customer will have an account payable). Accounts receivables are also known as trade receivables.
What is Asset Accounting?
Assets are sometimes defined as resources or things of value that are owned by a company. Some examples of assets which are obvious and will be reported on a company's balance sheet include: cash, accounts receivable, inventory, investments, land, buildings, and equipment. In addition, a company's balance sheet will also report prepaid expenses as an asset. For instance, if a company is required to pay its rent at the beginning of each quarter the portion that is prepaid as of the balance sheet date will be listed as a current asset.
Assets are sometimes defined as resources or things of value that are owned by a company. Some examples of assets which are obvious and will be reported on a company's balance sheet include: cash, accounts receivable, inventory, investments, land, buildings, and equipment. In addition, a company's balance sheet will also report prepaid expenses as an asset. For instance, if a company is required to pay its rent at the beginning of each quarter the portion that is prepaid as of the balance sheet date will be listed as a current asset.
What is Asset Classes?
A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same laws and regulations. The three main asset classes are equities, fixed-income and cash equivalents.
A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same laws and regulations. The three main asset classes are equities, fixed-income and cash equivalents.
What is Asset Transfer?
The law recognizes that persons are generally entitled to transfer their assets to whomever they wish and for whatever reason. The most common means of transfer are wills, trusts, and gifts. Increasingly, however, persons are transferring property and money in order to qualify for government-funded nursing care or to avoid paying creditors or the Internal Revenue Service. State and federal laws prohibit transfers that defraud creditors, however. If a creditor can show that a transfer was made in bad faith and for the purpose of avoiding a lawful debt, the transfer will be voided.
What is Company Code?
An organizational unit in accounting software used to identify a business. The code should be developed accordingly with tax laws, commercial laws, and other financial criteria. A company code in the SAP system shows a legally independent company and can also represent a legally dependent operating system oversees if external reporting is required.
What is Tax Code?
Your tax code is how your employer knows how much tax to deduct from your income. Different tax codes apply to different work situations, so it's important that you complete a Tax code declaration form with the right tax code each time you get a new job. The tax code you use depends on how many sources of income you have and whether you have a student loan.
What is Chat of Depreciation?
The chart of depreciation is a list of depreciation areas arranged according to business and legal requirements. The chart of depreciation enables you to manage all rules for the valuation of assets in a particular country.
The law recognizes that persons are generally entitled to transfer their assets to whomever they wish and for whatever reason. The most common means of transfer are wills, trusts, and gifts. Increasingly, however, persons are transferring property and money in order to qualify for government-funded nursing care or to avoid paying creditors or the Internal Revenue Service. State and federal laws prohibit transfers that defraud creditors, however. If a creditor can show that a transfer was made in bad faith and for the purpose of avoiding a lawful debt, the transfer will be voided.
An organizational unit in accounting software used to identify a business. The code should be developed accordingly with tax laws, commercial laws, and other financial criteria. A company code in the SAP system shows a legally independent company and can also represent a legally dependent operating system oversees if external reporting is required.
Your tax code is how your employer knows how much tax to deduct from your income. Different tax codes apply to different work situations, so it's important that you complete a Tax code declaration form with the right tax code each time you get a new job. The tax code you use depends on how many sources of income you have and whether you have a student loan.
The chart of depreciation is a list of depreciation areas arranged according to business and legal requirements. The chart of depreciation enables you to manage all rules for the valuation of assets in a particular country.
What is SAP FSCM?
Financial Supply Chain Management (FSCM) in simple terms means managing demand and supply of cash/cash equivalents. SAP has come out with SAP FSCM functionality or suite of applications to manage this more effectively and efficiently thus helping companies to manage the costs associated with this process better. In this posting we will look at what are the features and functionalities available in SAP FSCM and how it can be leveraged better for the benefit of business.
What is Business Partner Role?
Rights and obligations that can be taken on by a business partner in different business transactions. You can use the business partner role to carry out a business classification of a business partner. The basis for the definition of a business partner role is a business transaction. The attributes of the BP role depend on the particular transaction involved.
What is Business Partner Number Range?
The business partner number is the technical key which identifies the business partner. You can find the business partner number via the student number. The business partner number has the following attributes. Ten-character alphanumeric key
Key field for business partner database tables. The business partner number is displayed in business partner (BP) and Contract Accounts Receivable and Payable (FI-CA) transactions.
What is Master Data Synchronization?
Master data synchronization synchronizes master data objects in an SAP system that are similar from a business, but not from a technical, point of view, and in this way allows you to integrate different SAP applications seamlessly in your business processes.
Financial Supply Chain Management (FSCM) in simple terms means managing demand and supply of cash/cash equivalents. SAP has come out with SAP FSCM functionality or suite of applications to manage this more effectively and efficiently thus helping companies to manage the costs associated with this process better. In this posting we will look at what are the features and functionalities available in SAP FSCM and how it can be leveraged better for the benefit of business.
Rights and obligations that can be taken on by a business partner in different business transactions. You can use the business partner role to carry out a business classification of a business partner. The basis for the definition of a business partner role is a business transaction. The attributes of the BP role depend on the particular transaction involved.
The business partner number is the technical key which identifies the business partner. You can find the business partner number via the student number. The business partner number has the following attributes. Ten-character alphanumeric key
Key field for business partner database tables. The business partner number is displayed in business partner (BP) and Contract Accounts Receivable and Payable (FI-CA) transactions.
Master data synchronization synchronizes master data objects in an SAP system that are similar from a business, but not from a technical, point of view, and in this way allows you to integrate different SAP applications seamlessly in your business processes.
What is Business Partner Role (BP Role)?
Rights and obligations that can be taken on by a business partner in different business transactions. You can use the business partner role to carry out a business classification of a business partner. The basis for the definition of a business partner role is a business transaction. The attributes of the BP role depend on the particular transaction involved. The data that is available for a transaction also depends on the business partner category .
Rights and obligations that can be taken on by a business partner in different business transactions. You can use the business partner role to carry out a business classification of a business partner. The basis for the definition of a business partner role is a business transaction. The attributes of the BP role depend on the particular transaction involved. The data that is available for a transaction also depends on the business partner category .
What is Business partners for Master Data?
Business partners are legal or natural persons with whom you have a business relationship. You enter data on business partners in master records. Master records contain all data, known as master data, necessary for processing business transactions.
Business partners are legal or natural persons with whom you have a business relationship. You enter data on business partners in master records. Master records contain all data, known as master data, necessary for processing business transactions.
What is Active SAP Collection Management?
The components of SAP Collections Management support you in active receivables management. Using collections strategies, you can valuate and prioritize customers from a receivables management view. Customers that fulfil the rules defined in a strategy are distributed to the work lists of the collection specialists. The collection specialists then contact the customers in their order of priority in order to collect receivables.
What is Attribute?
On this tab page, you specify whether the characteristic has display or navigation attributes, and if so, which properties these attributes have. In the query, display attributes provide additional information about the characteristic. Navigation attributes, on the other hand, are treated like normal characteristics in the query, and can also be evaluated on their own.
What is Text Id's?
This control table contains all text IDs supported by SAPscript. Text IDs are always allocated to a text object. The key of this table thus consists of the text object and a four-digit text ID. You can use the SAPscript function modules only to process texts whose IDs are stored in this table.
The components of SAP Collections Management support you in active receivables management. Using collections strategies, you can valuate and prioritize customers from a receivables management view. Customers that fulfil the rules defined in a strategy are distributed to the work lists of the collection specialists. The collection specialists then contact the customers in their order of priority in order to collect receivables.
What is RMS ID's ?
With the Records Management System (RMS), you define the areas that are visible in Dispute Case Processing for SAP Dispute Management. If you are in Dispute Case Processing, then you can choose which RMS you want to work in. You then only see the dispute cases that belong to this RMS. There is no cross-RMS search for dispute cases in Dispute Case Processing. In addition, you cannot use dispute cases or other elements of an RMS as linked objects in a dispute case for another RMS.
With the Records Management System (RMS), you define the areas that are visible in Dispute Case Processing for SAP Dispute Management. If you are in Dispute Case Processing, then you can choose which RMS you want to work in. You then only see the dispute cases that belong to this RMS. There is no cross-RMS search for dispute cases in Dispute Case Processing. In addition, you cannot use dispute cases or other elements of an RMS as linked objects in a dispute case for another RMS.
On this tab page, you specify whether the characteristic has display or navigation attributes, and if so, which properties these attributes have. In the query, display attributes provide additional information about the characteristic. Navigation attributes, on the other hand, are treated like normal characteristics in the query, and can also be evaluated on their own.
This control table contains all text IDs supported by SAPscript. Text IDs are always allocated to a text object. The key of this table thus consists of the text object and a four-digit text ID. You can use the SAPscript function modules only to process texts whose IDs are stored in this table.
What is Status Profile?
A status profile is created in customizing per order type.
Within a status profile you can
Define user statuses and document their function in long texts
Specify the expected sequence of user statuses by assigning a "status number" to each user status
Define an initial status, which is automatically set when the object is created
Specify that a user status should automatically be activated, if a certain business transaction is carried out
Allow or forbid certain transactions, if a status is active
What is Field Status Variant?
During document entry, different fields are displayed depending on the transaction and the account used. For example, when posting expenses, cost center and tax information is usually required. However, when posting cash, this same information is not necessary. These different displays during document processing are controlled by the field status.
For each category of general ledger account, e.g., cash accounts, expenses accounts, you need to determine the status of every document entry field. Will text be required, suppressed or optional for document entry when using these gl accounts? Will cost center be required, suppressed or optional for document entry when using these gl accounts? Etc., etc. these “rules” are grouped in to field status groups for each category of general ledger accounts. The field status groups are collected under one field status variant. The field status variant is assigned to the company code. No posting can be made until this is complete. R/3 delivers a standard set of field status group. It is recommended to copy the standard delivered field status groups and modify as necessary.
What is Tolerance Group for Employees?
For the employees of the accounting dept. we define the upper limits for posting procedures. The following are the posting procedures.
1. The amount of a document an employee can post into gl accounts, vendor accounts, customer accounts and asset accounts
2. The amount of the open item he can deal with
3. The percentage of cash discount he can offer or post
4. The amount of payment difference he can accept.
The FI consultant will define the number of tolerance groups and assign them to the employee user ids. Then the upper limits are applicable to the respective employees as far as the postings are concerned. When the user has to post a business transaction, whose amount is above the upper limit of his tolerance group, the user has to get the approval from the respective higher level employee. For this purpose the user the keeps the document pending for posting. This process is called “parking of documents”
What is Posting Period Variant?
The posting periods are defined in the fiscal year variant. To prevent documents from being posted to wrong posting period, desired periods can be closed. Usually the current posting period is open and all other periods are closed. At the end of period it is usually closed and the next period is opened. A period is opened by entering a range into the posting period variant which encompasses this period. It is possible to have as many periods open as required. During the procedure of financial closing, some special periods may also be open for closing postings. The following activities are involved in the maintenance of the posting period variant
1 Define the posting period variant
2. Assign the posting period variant to the company code
3. Open and close posting period.
What is Case Types?
The case type is a central Customizing object in SAP Dispute Management and controls the structure and properties of the dispute cases. When creating a case in Dispute Case Processing, the user has to select a case type manually; when creating dispute cases from Accounts Receivable transactions, the case type is determined automatically. The dispute case created uses the settings summarized in the case type.
What is Customer Contacts ?
This component logs all customer contacts that were saved from this component or automatically from other components and displays them. This includes contact initiated by the customer, such as telephone calls, as well as contact initiated by the clerk, for example, letters or dunning notices. In the display, you can list customer contacts by type, period, and medium for example. You can evaluate the customer contacts to obtain information about the efficiency of the business processes and the clerk's workload.
A status profile is created in customizing per order type.
Within a status profile you can
Define user statuses and document their function in long texts
Specify the expected sequence of user statuses by assigning a "status number" to each user status
Define an initial status, which is automatically set when the object is created
Specify that a user status should automatically be activated, if a certain business transaction is carried out
Allow or forbid certain transactions, if a status is active
During document entry, different fields are displayed depending on the transaction and the account used. For example, when posting expenses, cost center and tax information is usually required. However, when posting cash, this same information is not necessary. These different displays during document processing are controlled by the field status.
For each category of general ledger account, e.g., cash accounts, expenses accounts, you need to determine the status of every document entry field. Will text be required, suppressed or optional for document entry when using these gl accounts? Will cost center be required, suppressed or optional for document entry when using these gl accounts? Etc., etc. these “rules” are grouped in to field status groups for each category of general ledger accounts. The field status groups are collected under one field status variant. The field status variant is assigned to the company code. No posting can be made until this is complete. R/3 delivers a standard set of field status group. It is recommended to copy the standard delivered field status groups and modify as necessary.
For every field
we can maintain only either of the following status.
- Suppressed status: if this is selected then that particular field is hidden in the document while posting the business transaction.
- Required status: if this is selected for a field then it is compulsory to give the information in that field.
- Optional status: if this selected for field then that field is displayed in the document but we may or may not provide the information in that field.
In
short the field status variant controls the display of fields to be entered at
the time of posting the transactions to the gl accounts (at the time of the
document entry)
All the fields in which we can enter the
information at the time of the document entry are grouped in to 41 groups which
defaulty delivered along with the soft ware. We have to copy all these groups
in to our field status group and make necessary setting.
For the employees of the accounting dept. we define the upper limits for posting procedures. The following are the posting procedures.
1. The amount of a document an employee can post into gl accounts, vendor accounts, customer accounts and asset accounts
2. The amount of the open item he can deal with
3. The percentage of cash discount he can offer or post
4. The amount of payment difference he can accept.
The FI consultant will define the number of tolerance groups and assign them to the employee user ids. Then the upper limits are applicable to the respective employees as far as the postings are concerned. When the user has to post a business transaction, whose amount is above the upper limit of his tolerance group, the user has to get the approval from the respective higher level employee. For this purpose the user the keeps the document pending for posting. This process is called “parking of documents”
What is Document Types And Number Ranges?
The business
transactions are posted in to the system through an accounting process called
“posting”. As evidence of posting, a record is generated and stored in the
database. This record is called DOCUMENT.
There are two
categories of documents.
1. Original
documents. These include the vouchers, cheque book, purchase invoices, copies
of sales invoices and receipts. These are the basis for entering business
transactions in to the system.
2. Processing
documents. These include the recurring documents, sample documents, and
accounting documents.
The accounting
documents represent the posting of original documents into the system.
Every accounting
document contains two parts.
1.Document
Header. This part contains the data such as document date, posting date,
posting period, currency, company code, DOUCMENT TYPE. Etc.
- Document line item part.
Rent a/c
dr 10000 (line item no 1)
To cash a/c 10000 (line item no 2)
A document can
contain up to 999 line items.
The document
line item part contains the data such as posting key, gl account no. and amount
etc. for every line item.
The document
type controls the following.
- The number to be assigned to the document
- It differentiates the business transactions among the account types and for every account type it differentiates among the nature of business transactions.
The document
types are defined at the client level and are therefore valid for all company
codes. The standard system is delivered with documents types which can be used,
changed or copied.
The number
ranges for document types are defined at company code level.
The posting periods are defined in the fiscal year variant. To prevent documents from being posted to wrong posting period, desired periods can be closed. Usually the current posting period is open and all other periods are closed. At the end of period it is usually closed and the next period is opened. A period is opened by entering a range into the posting period variant which encompasses this period. It is possible to have as many periods open as required. During the procedure of financial closing, some special periods may also be open for closing postings. The following activities are involved in the maintenance of the posting period variant
1 Define the posting period variant
2. Assign the posting period variant to the company code
3. Open and close posting period.
The case type is a central Customizing object in SAP Dispute Management and controls the structure and properties of the dispute cases. When creating a case in Dispute Case Processing, the user has to select a case type manually; when creating dispute cases from Accounts Receivable transactions, the case type is determined automatically. The dispute case created uses the settings summarized in the case type.
This component logs all customer contacts that were saved from this component or automatically from other components and displays them. This includes contact initiated by the customer, such as telephone calls, as well as contact initiated by the clerk, for example, letters or dunning notices. In the display, you can list customer contacts by type, period, and medium for example. You can evaluate the customer contacts to obtain information about the efficiency of the business processes and the clerk's workload.
What is Dispute Management ?
This component contains functions for processing receivables-related dispute cases. It supplements the logistics process chain Purchase Order Delivery Invoice Payment in the stage between invoice and payment if there are discrepancies with the customer.
What is Promise Pay ?
If you post an incoming payment for an invoice with a promise to pay , the information on the incoming payment is updated in the promise to pay. The prerequisite is that the promise to pay has not yet been confirmed and the value of the amount paid in the promise to pay does not correspond to the amount promised. Payments are also updated in the promise to pay if their promised for date is in the past.
This component contains functions for processing receivables-related dispute cases. It supplements the logistics process chain Purchase Order Delivery Invoice Payment in the stage between invoice and payment if there are discrepancies with the customer.
If you post an incoming payment for an invoice with a promise to pay , the information on the incoming payment is updated in the promise to pay. The prerequisite is that the promise to pay has not yet been confirmed and the value of the amount paid in the promise to pay does not correspond to the amount promised. Payments are also updated in the promise to pay if their promised for date is in the past.
What is Organizational Structure?
Representation of the reporting structure and the distribution of tasks using organizational units (departments, for example) in an enterprise.
Define Resubmission Reasons?
Documents the requirement that a collection specialist must carry out an activity with regard to the customer on a specific date. If you configure your collection strategy accordingly, you can use the resubmission as a criterion for creating the work list.
Representation of the reporting structure and the distribution of tasks using organizational units (departments, for example) in an enterprise.
Documents the requirement that a collection specialist must carry out an activity with regard to the customer on a specific date. If you configure your collection strategy accordingly, you can use the resubmission as a criterion for creating the work list.
What is General Ledger Accounting?
There are two types of data.
1. Master data: the data which is permanent in existence is called master data. The record which contains the master data is called master record. The master data is again and again used during processing.
2. Transactional data: it is the data which is posted to the master record during the daily management of the business. This is temporary in existence
The General ledger master record contains the data under two segments.
1. Chart of accounts segment: this segment contains the data such as account group, short text and long text etc. When all the company codes are using the same chart of accounts this data is same in every company code.
2. Company code segment: this segment contains the data such as account currency, line item display and sort key etc. This data is specific to every company code.
We can create the general ledger master record in the following ways.
1. At chart of accounts level first then at the company code level
2. Centrally (we can enter the data both in chart of accounts segment and company code segment at the same time)
What is Tolerance Group for Employees?
For the employees of the accounting dept. we define the upper limits for posting procedures. The following are the posting procedures.
1. The amount of a document an employee can post into gl accounts, vendor accounts, customer accounts and asset accounts
2. The amount of the open item he can deal with
3. The percentage of cash discount he can offer or post
4. The amount of payment difference he can accept.
The FI consultant will define the number of tolerance groups and assign them to the employee user ids. Then the upper limits are applicable to the respective employees as far as the postings are concerned. When the user has to post a business transaction, whose amount is above the upper limit of his tolerance group, the user has to get the approval from the respective higher level employee. For this purpose the user the keeps the document pending for posting. This process is called “parking of documents”
what is SAP Collections Management?
The component SAP Collections Management supports you in proactive receivables management. Using collection strategies, you can valuate and prioritize customers from the receivables management point of view. Customers who meet defined rules in a strategy are distributed to work lists. The collection specialists in your company can use them as a basis for contacting customers in their order of priority, and collecting the outstanding receivables.
What is Implementation Roadmap ?
An ASAP Roadmap represents a comprehensive methodology that provides you with all the steps needed to implement an SAP System. The standard Implementation Roadmap has five major phases. Each phase represents a major milestone in the project plan methodology, and contains specific structure elements. The Implementation Roadmap provides a standard repeatable procedure for implementing an SAP System, including project management, configuration of business processes, as well as technical, testing and training aspects.
What is Grouping and Number Ranges?
Business partners must have the same business partner numbers in SAP CRM and SAP Media. When a customer is created in background processing in SAP Media, they must also have the same number as their customer number. For this reason, you must make a number of special settings for number ranges and groupings.
What is Business Partner Settings?
In Customizing, you have made the settings required for SAP Business Partner. In particular, you have created a business partner role that is assigned to the business partner role category. You can use the Business Partner Collections Management role delivered. In Customizing, you have portrayed your organizational structure with reference to Collections Management in the system.
What is Active Synchronization?
User interface for master data synchronization in an SAP system.Using the synchronization cockpit, you can carry out all the steps for master data synchronization in an SAP system. Customizing synchronization, Selection, preparation and starting of synchronization runs. Monitoring of synchronization runs, Post processing of synchronization errors
You can start the synchronization cockpit in Customizing of the Cross-Application Components under Start of the navigation path Master Data Synchronization Next navigation step Synchronization of Mass Data Next navigation step Execute Synchronization Cockpit . End of the navigation path
What is Case Record Model?
The purpose of this procedure is to create a self-defined case record model on the basis of the current supported business object types. You do this by copying the default element types. Element types are defined in the registry of SAP Records Management.
What is Escalating Dispute Cases?
SAP Dispute Management enables you to escalate a number of dispute cases. This can be useful, for example, if dispute cases have exceeded the planned closing date without being closed.
What is Derivation of Element Types?
In SAP Dispute Management, you need certain element types in the Dispute Case Processing system. When you create the element types, you define which types of elements can be used in SAP Dispute Management and which properties the individual element types have.
What is Process Integration with Accounts Peceivables?
With SAP Dispute Management, you can manage dispute cases that refer to objects in Accounting. Examples are underpayments or overdue items. The process integration has the following tasks:
1. Simplify the entry of such dispute cases
2. Make the dispute cases visible in the Accounting transactions
3. Update the information in the dispute case in clearing transactions
This enables accounting clerks to include other colleagues and departments in finding a solution to the dispute case from transactions that they know, and enables these other colleagues and departments to check the current status of the dispute case. The automatic update of dispute cases in clearing transactions means that the processor of a dispute case is always informed about the last activities in accounting and can react in good time.
What is Dispute Case?
All activities in dispute case processing have a common initial screen that you can access as follows:
· Transaction UDM_DISPUTE
· Role menu
· From mySAP ERP 2004 from the SAP Easy Access screen under Accounting → Financial Supply Chain Management → Dispute Management → Dispute Case Processing.
What is Effects of Clearing on Dispute Cases?
Line items that are included in dispute cases as disputed objects also define the value of the dispute case. In clearing transactions, the system analyzes whether the clearing was caused by a payment, a credit memo, or another transaction. It updates the proportion in the amount fields of the dispute case and reduces the disputed amount. The cleared line item is classified as a resolved object and new residual items, which refer to the cleared items, are added as disputed objects.
What is Automatic write off of dispute case?
For dispute cases where the customer does not receive a credit memo and the disputed amount is deemed to be uncollectible, you can write off the disputed amount automatically in Dispute Case Processing. The dispute case is then closed automatically. You can also use the automatic write-off function to write off and close dispute cases with small amounts.
What is Credit Master Data?
All credit-relevant business partner data that you want to use in SAP Credit Management for monitoring credit risks. You define and update credit master data in the master data record of the respective business partner.
What is Credit Limit Utilization?
The analytical app displays the Key Performance Indicator (KPI) Credit Limit Utilization, that is, the utilization of a business partner's credit limit as a percentage value and an absolute amount. You can check which business partners are beyond the threshold value you defined. You can view credit limit utilization and credit exposure according to business partner, credit segment, country, and region. You can drill down by the top 10 business partners with the highest credit limit utilization and by the top 10 business partners with the highest credit exposure
What is Credit Segments?
All credit-relevant business partner data that you want to use in SAP Credit Management for monitoring credit risks. You define and update credit master data in the master data record of the respective business partner.
what is Payment Behavior?
This function enables you to forward changes payment behavior summaries for your business partners from Accounts Receivable Accounting to SAP Credit Management. These summaries contain document-specific data and summarized data. You can use them when calculating the score and the credit limit. For a list of the individual payment behavior summaries, see Credit Master Data, and the section Structure.
What is Bill Release Process?
If you activate this function, all newly posted SD bills are provided with a payment block. Bills that have been blocked in this way are displayed in the Web application SAP Biller Direct on the tab page Bills to be Approved. A user with the appropriate authorization must approve these bills in the Web application. Once approval has been given, the payment block is removed from the bill and the bill is then displayed on the tab page Open Bills. The followingusers participate in this process.
What is Integration with SAP Biller Direct?
The component SAP Biller Direct supports you in the electronic presentation of bills, and their further processing. With SAP Biller Direct, you can offer your customers the option of viewing and paying their bills in the Internet, and of entering inquiries and comments.
There are two types of data.
1. Master data: the data which is permanent in existence is called master data. The record which contains the master data is called master record. The master data is again and again used during processing.
2. Transactional data: it is the data which is posted to the master record during the daily management of the business. This is temporary in existence
The General ledger master record contains the data under two segments.
1. Chart of accounts segment: this segment contains the data such as account group, short text and long text etc. When all the company codes are using the same chart of accounts this data is same in every company code.
2. Company code segment: this segment contains the data such as account currency, line item display and sort key etc. This data is specific to every company code.
We can create the general ledger master record in the following ways.
1. At chart of accounts level first then at the company code level
2. Centrally (we can enter the data both in chart of accounts segment and company code segment at the same time)
What is Tolerance Groups for GL Accounts?
setting the maximum limits equal to which or below which the differences in balance sheet gl accounts are automatically taken to the profit and loss account or some predefined account like sundry balances written off a/c. based on the requirements of accounting department we define different tolerance groups and we assign them in the respective gl account master records. Based on the limits specified in those tolerance limits, the differences in that gl account is automatically transferred to profit and loss account. The limits are applied at account level not for the every transaction level in that gl account.
A tolerance group can be assigned in any no of gl account master records. But a gl account master record can be assigned with only one tolerance group. The upper limits can be specified either for the debit difference or for credit difference separately.
What is Foreign Currency Postings?
Translation ration for currency translation: It is the relation between the minimum units of two currencies in the commercial usage for the conversion purpose. For any pair of currency the translation ration is always 1:1. but for the Japanese Yen the relation is always 1:100
Foreign exchange quotations: There are two types of quotation which we can enter in the foreign currency tables.
1. Direct quotation: for one unit of foreign currency how many number of units of company code local currency. It is convenient to use the direct quotation when the foreign currency is bigger than the company code local currency.
2. Indirect quotation: For one unit of company code local currency, how many number of units of foreign currency. It is convenient to use the indirect quotation when the company code local currency is bigger than the foreign currency.
Transaction currency: It is the currency in which the business transaction occurs. It is also called document currency. For every foreign currency posting the system stores two figures. One in document currency and the other in company code local currency.
setting the maximum limits equal to which or below which the differences in balance sheet gl accounts are automatically taken to the profit and loss account or some predefined account like sundry balances written off a/c. based on the requirements of accounting department we define different tolerance groups and we assign them in the respective gl account master records. Based on the limits specified in those tolerance limits, the differences in that gl account is automatically transferred to profit and loss account. The limits are applied at account level not for the every transaction level in that gl account.
A tolerance group can be assigned in any no of gl account master records. But a gl account master record can be assigned with only one tolerance group. The upper limits can be specified either for the debit difference or for credit difference separately.
Translation ration for currency translation: It is the relation between the minimum units of two currencies in the commercial usage for the conversion purpose. For any pair of currency the translation ration is always 1:1. but for the Japanese Yen the relation is always 1:100
Foreign exchange quotations: There are two types of quotation which we can enter in the foreign currency tables.
1. Direct quotation: for one unit of foreign currency how many number of units of company code local currency. It is convenient to use the direct quotation when the foreign currency is bigger than the company code local currency.
2. Indirect quotation: For one unit of company code local currency, how many number of units of foreign currency. It is convenient to use the indirect quotation when the company code local currency is bigger than the foreign currency.
Transaction currency: It is the currency in which the business transaction occurs. It is also called document currency. For every foreign currency posting the system stores two figures. One in document currency and the other in company code local currency.
For the employees of the accounting dept. we define the upper limits for posting procedures. The following are the posting procedures.
1. The amount of a document an employee can post into gl accounts, vendor accounts, customer accounts and asset accounts
2. The amount of the open item he can deal with
3. The percentage of cash discount he can offer or post
4. The amount of payment difference he can accept.
The FI consultant will define the number of tolerance groups and assign them to the employee user ids. Then the upper limits are applicable to the respective employees as far as the postings are concerned. When the user has to post a business transaction, whose amount is above the upper limit of his tolerance group, the user has to get the approval from the respective higher level employee. For this purpose the user the keeps the document pending for posting. This process is called “parking of documents”
The component SAP Collections Management supports you in proactive receivables management. Using collection strategies, you can valuate and prioritize customers from the receivables management point of view. Customers who meet defined rules in a strategy are distributed to work lists. The collection specialists in your company can use them as a basis for contacting customers in their order of priority, and collecting the outstanding receivables.
An ASAP Roadmap represents a comprehensive methodology that provides you with all the steps needed to implement an SAP System. The standard Implementation Roadmap has five major phases. Each phase represents a major milestone in the project plan methodology, and contains specific structure elements. The Implementation Roadmap provides a standard repeatable procedure for implementing an SAP System, including project management, configuration of business processes, as well as technical, testing and training aspects.
Business partners must have the same business partner numbers in SAP CRM and SAP Media. When a customer is created in background processing in SAP Media, they must also have the same number as their customer number. For this reason, you must make a number of special settings for number ranges and groupings.
In Customizing, you have made the settings required for SAP Business Partner. In particular, you have created a business partner role that is assigned to the business partner role category. You can use the Business Partner Collections Management role delivered. In Customizing, you have portrayed your organizational structure with reference to Collections Management in the system.
User interface for master data synchronization in an SAP system.Using the synchronization cockpit, you can carry out all the steps for master data synchronization in an SAP system. Customizing synchronization, Selection, preparation and starting of synchronization runs. Monitoring of synchronization runs, Post processing of synchronization errors
You can start the synchronization cockpit in Customizing of the Cross-Application Components under Start of the navigation path Master Data Synchronization Next navigation step Synchronization of Mass Data Next navigation step Execute Synchronization Cockpit . End of the navigation path
The purpose of this procedure is to create a self-defined case record model on the basis of the current supported business object types. You do this by copying the default element types. Element types are defined in the registry of SAP Records Management.
SAP Dispute Management enables you to escalate a number of dispute cases. This can be useful, for example, if dispute cases have exceeded the planned closing date without being closed.
In SAP Dispute Management, you need certain element types in the Dispute Case Processing system. When you create the element types, you define which types of elements can be used in SAP Dispute Management and which properties the individual element types have.
With SAP Dispute Management, you can manage dispute cases that refer to objects in Accounting. Examples are underpayments or overdue items. The process integration has the following tasks:
1. Simplify the entry of such dispute cases
2. Make the dispute cases visible in the Accounting transactions
3. Update the information in the dispute case in clearing transactions
This enables accounting clerks to include other colleagues and departments in finding a solution to the dispute case from transactions that they know, and enables these other colleagues and departments to check the current status of the dispute case. The automatic update of dispute cases in clearing transactions means that the processor of a dispute case is always informed about the last activities in accounting and can react in good time.
All activities in dispute case processing have a common initial screen that you can access as follows:
· Transaction UDM_DISPUTE
· Role menu
· From mySAP ERP 2004 from the SAP Easy Access screen under Accounting → Financial Supply Chain Management → Dispute Management → Dispute Case Processing.
Line items that are included in dispute cases as disputed objects also define the value of the dispute case. In clearing transactions, the system analyzes whether the clearing was caused by a payment, a credit memo, or another transaction. It updates the proportion in the amount fields of the dispute case and reduces the disputed amount. The cleared line item is classified as a resolved object and new residual items, which refer to the cleared items, are added as disputed objects.
For dispute cases where the customer does not receive a credit memo and the disputed amount is deemed to be uncollectible, you can write off the disputed amount automatically in Dispute Case Processing. The dispute case is then closed automatically. You can also use the automatic write-off function to write off and close dispute cases with small amounts.
All credit-relevant business partner data that you want to use in SAP Credit Management for monitoring credit risks. You define and update credit master data in the master data record of the respective business partner.
The analytical app displays the Key Performance Indicator (KPI) Credit Limit Utilization, that is, the utilization of a business partner's credit limit as a percentage value and an absolute amount. You can check which business partners are beyond the threshold value you defined. You can view credit limit utilization and credit exposure according to business partner, credit segment, country, and region. You can drill down by the top 10 business partners with the highest credit limit utilization and by the top 10 business partners with the highest credit exposure
All credit-relevant business partner data that you want to use in SAP Credit Management for monitoring credit risks. You define and update credit master data in the master data record of the respective business partner.
This function enables you to forward changes payment behavior summaries for your business partners from Accounts Receivable Accounting to SAP Credit Management. These summaries contain document-specific data and summarized data. You can use them when calculating the score and the credit limit. For a list of the individual payment behavior summaries, see Credit Master Data, and the section Structure.
What is Credit exposure?
When you post a delivery, the commitment of the order delivered is reduced and a commitment with the credit exposure category Delivery Value is created. Both credit exposure changes are transferred to SAP Credit Management. Deliveries without an order reference do not create a commitment; here the credit exposure does not arise until the billing document is transferred to Accounts Receivable Accounting.
What is Biller Direct?
The component SAP Biller Direct supports you in the electronic presentation of bills, and their further processing. With SAP Biller Direct, you can offer your customers the option of viewing and paying their bills in the Internet, and of entering inquiries and comments.
What is User Type in Biller Direct?
User management for the SAP Biller Direct application uses the mechanisms provided with the SAP NetWeaver Application Server Java, for example, tools, user types, and password policies. For an overview of how these mechanisms apply for the SAP Biller Direct application, see the sections below. In addition, we provide a list of the standard users required for operating the SAP Biller Direct application.
What is SAP Biller Direct?
You can use this business function to enable your vendors, within SAP Biller Direct Buy Side, to upload bills via your portal, and then monitor the corresponding account movements there. Additional functions are available to the Web users of SAP Biller Direct.
what if Effects of Clearing on Disputs Cases?
Line items that are included in dispute cases as disputed objects also define the value of the dispute case. In clearing transactions, the system analyzes whether the clearing was caused by a payment, a credit memo, or another transaction. It updates the proportion in the amount fields of the dispute case and reduces the disputed amount. The cleared line item is classified as a resolved object and new residual items, which refer to the cleared items, are added as disputed objects.
If you activate this function, all newly posted SD bills are provided with a payment block. Bills that have been blocked in this way are displayed in the Web application SAP Biller Direct on the tab page Bills to be Approved. A user with the appropriate authorization must approve these bills in the Web application. Once approval has been given, the payment block is removed from the bill and the bill is then displayed on the tab page Open Bills. The followingusers participate in this process.
The component SAP Biller Direct supports you in the electronic presentation of bills, and their further processing. With SAP Biller Direct, you can offer your customers the option of viewing and paying their bills in the Internet, and of entering inquiries and comments.
SAP FICO
One of the foremost and spicy modules of
SAP is (FICO) or Financials and controlling module. Lots
of users value more highly to dive into the venture for obtaining SAP
FICO online training completely. This is often splendidly
accepted as an awfully hot and spicy section of SAP and many learners value
more highly to endure its technical training. It covers the best technical
aspects i.e. Book keeping and management of your business. Lots of
organizations are conducting crash SAP FICO training courses to coach their
staff. Moreover, the IT department has lots of superlative FICO connected jobs
for all those of us who grasp ins and outs of FICO.
Chart of
accounts is the list of general ledger accounts used by the organization. It is
compulsory to define the chart of accounts before creating the general ledger
master record. There are three types of chart of accounts.
OPERATIONAL CHART OF ACCOUNTS: It is the list of the general ledger accounts used by the company code in to which all the daily business transactions are posted. From this chart of accounts the financial statements are prepared. It is compulsory every company code should be assigned with one operational chart of accounts.
COUNTRY SPRECIFIC CHART OF ACCOUNTS: It is the list of general ledger accounts used to meet the country specific legal requirements.
GROUP CHART OF ACCOUNTS: It is the list of general ledger accounts used by the entire corporate group to prepare the consolidated financial statements. The definition of the group chart of accounts is optional.
The chart of
accounts contains the data for every general ledger account such as name of the
account, number of the account, account group and maintenance language etc.
A chart of
accounts can be used by the one or more company codes. In this case the name of
the account, account number and account group is same in all company codes.
This is possible when all the company codes are lying in the same country.
A company code
can be assigned with two types of chart of accounts. I.e. operational chart of
accounts and country specific chart of accounts.
Notes on FI organizational units
COMPANY:
Company represents
the group. It contains up to 6 characters. It is alpha numeric. The definition
of company is optional. A company can have any number of company codes
COMPANY CODE:
It is the organizational unit in
the financial accounting for which a complete set of books of accounts are maintained for
external legal reporting i.e. to prepare the legal financial statements. It is four-character id. It is alphanumeric.
If the boundaries of the particular country are crossed we have to create the
company code. The definition of the company code is mandatory. It is always
required to report the financial
statements legally at the company code
level.
Country:
The
information given in this field is called the home country of the company code
and every other country is considered by the system as foreign country.
Currency:
The
currency entered in this field is called ‘company code local currency’. Every
other currency is treated by the system as foreign currency. This information
is used by the system in identifying the foreign currency. The financial
statements are prepared in the company code local currency.
Language:
The
language entered in this field determines the language in which the books of accounts are maintained,
the checks and correspondence documents are printed.
BUSINESS AREA:
It is the organizational unit in
the financial accounting which structures the organization according the
geographical area of operations or the line of activity to which the business
transactions can be posted. The branches
of the organization can be taken as the business area. The purpose of the
business areas is to prepare the financial statements for the internal
management analysis purpose. The definition of the business areas is optional.
The system identifies the expenses and incomes with the business areas by
specifying the business area while entering the business transactions in the
documents. The business areas are not assigned to any company code. The
business areas are created at client level. This enables any company code can
use the same business area.
Introduction
to SAP FICO
SAP stands for Systems, Applications and
Products in Data Processing. It is also called ERP software or ERP package.
ERP stands for Enterprise Resources
Planning. It is the process of planning for the effective utilizations of the
available resources of the company to maximize the profits. Every company will
have the following resources.
1. Men
2. Materials
3. Machines
4. Money.
These are the natural resources and they
are not available to the companies plenty. So with the limited resources they
want to maximize the profits. For this purpose the company has to plan the
utilizations of these resources in such
a way that the profits are maximized. So
the concept of ERP covers the techniques
and procedures which help the business organization to maximize the profits by
enabling them to utilize the available resources in the most effective manner.
1. Account Payables
11. Document Reversal
12. Document Tolerance Group for Employees
13. Opening And Closing of Period
14. Reference Document
15. Document Using BAPI
16. Defining Number Ranges For Various Document Types
17. Account Assignment
18. Account Determination
19. Account Payable Configuration Steps
20. Account Receivable
21. Asset Accounting
22. Asset Classes
23. Asset Explorer
24. Asset Transfer
25. Assign Company Code To Controlling Area
26. Assign Tax Codes for Non-Taxable Transactions
27. Assignment About Chart of Depreciation in Order to Company Code
12. Document Tolerance Group for Employees
13. Opening And Closing of Period
14. Reference Document
15. Document Using BAPI
16. Defining Number Ranges For Various Document Types
17. Account Assignment
18. Account Determination
19. Account Payable Configuration Steps
20. Account Receivable
21. Asset Accounting
22. Asset Classes
23. Asset Explorer
24. Asset Transfer
25. Assign Company Code To Controlling Area
26. Assign Tax Codes for Non-Taxable Transactions
27. Assignment About Chart of Depreciation in Order to Company Code
Benefits
ERP systems:
1. It
eliminates the data redundancy (it eliminates the data duplication)
2. All
the data is available in the common or central data base
3. Data
is updated and available in real time
4. One
point entry of data: when the data is entered in one department of the
organization , then it will update the relevant data in other departments of the organization.
5. Best
business practices .
6. Modular
system: the separate software are
available within same ERP product to manage different departments
in the organization.
7. Can
be implemented only in the required functions or depart ments
8. Others
modules can be integrated later.
9. Mangers
can utilize their time in analysis and spend less time in co-ordination effort.
10. It
improves the customer satisfaction and quality of the customer service
11. It
reduces the idle time
12. We
can deal with the multiple languages and currencies.
List
of ERP softwares:
1. SAP
2. ORACLE
3. BAAN
4. JD
EDWORD
5. PEOPLESOFT
6. MISCROSOT
DYNAMICS etc.
The ORACLE is specialized in the
management of finance department. BAAN is specialized in the management of
production department. JD EDWARD is
specialized I n the management of sales and distribution department. PEOPLESOFT
is specialized in the management of HR department. But SAP provides the effective solutions for
the management of all most all the departments in the company. It is very user
friendly and can be integrated with any other third party soft wares. With the
SAP software, we can achieve the high level of integration among the
departments in the company. Because of these
reasons SAP is the largest used
ERP soft ware in the world.
SAP PRODUCT DEVELOPMENT
The sap software was developed by a
German company SAP.AG. it was established in the year 1972. Its head quarters are at Waldorf, Germany.
·
In 1972 the company has
developed the product called SAP R/1 SUITE
·
In 1988 the company has
developed the product called SAP R/2 SUITE
·
In 1995 the company has
developed the product called SAP R/3 SUITE.
“R” stands for the real time data
processing. Real time data processing
means, when we process the data elements, the related data base is
instantly updated.
“3” stands for three tier architecture.
It refers to the levels of hardware set up we require to use the
SAP ERP software. Under the three tier architecture the following three layers are available.
1. Data
base server layer
2. Application
server layer
3. Cient/
presentation server layer.
Data base server layer: it is the
computer system in which the data base is organized or hosted. The data base is
managed on the principles of Related Data Base Management systems. Ex: ORACLE,
SQL SERVER ETC.
Application server layer. it is the
server in which the sap application is
hosted . it contains the programming code or processing logic necessary to process the business
transaction.
Client/ presentation server layer: all
the client systems, used by the employees of the company together is called client or presentation server
layer.
Now a days we are suing only the three ties architecture. The
advantage or the reason is that we can increase of decrease the size
of any layer without disturbing the size of
other layers.
The current version sap software is ECC
6.0 EHP 6.
ECC stands for ERP Central component
EHP stands for enhancement package.
There are two types of modules in SAP
R/3 SUITE.
1. Functional
modules: these include
a. FICO
(financial accounting and controlling)
b. MM (materials management)
c. SD (sales and distribution)
d. HR (human resources management)
e. PPC (production planning and controlling)
f. PM (plant maintenance)
g. PS (project systems)
h. REM (rear estate management)
i.
WF (work flow)
j.
FSCM(financial supply
chain management)
k. TRM
(treasury and risk management) etc.
2. Technical
modules: these include
a. ABAP
(advances business application
programming language)
b. BASIS
(business application software
integrated systems)
FICO
FI stands for financial accounting.
Using the financial accounting component we can prepare the financial
statements according to the legal requirements of the country in which the
company is registered and doing the business. The following are the sub modules
in the financial accounting component.
1. General
ledger accounting
2. Accounts
payables
3. Accounts
receivables
4. Asset
accounting.
Co stands for controlling (Cost
accounting). Using this component we can provide the information to the middle
level management (to analyze the performance) and to the top level management (
to assist in the strategic decision making). The
following are the sub modules in controlling component.
1. Cost element accounting
2. Cost
center accounting
3. Internal
order accounting
4. Profit
center accounting
5. Profitability
analysis
6. Product
costing.
SAP FICO Online Training