FI-CO

Advantages in New General Ledger

Advanstages in new general ledger are:

1. The new General Ledger in mySAP ERP 2004 has the following advantages over the classic General Ledger in R/3 Enterprise:
a) In the new General Ledger, you can display the parallel accounting using parallel accounts (as in R/3) or using parallel ledgers. The FI standard functions and reports are available for all parallel ledgers.
b) The ‘Segment’ entity and the relevant reporting that are required for segment reporting according to IAS and U.S. GAAP are available in the new General Ledger.

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Account Receivable Basics

SAP R/3 has a dedicated module FI-AR which is specialized to maintain the accounts receivable sub-ledger of the FI-GL General Ledger. The accounts receivable module stores its own master data, transaction data and has its own reporting system. One important point is that both the general ledger and the AR sub-ledger use the same chart of accounts. Similarly, the master records are also shared with GL. As a concept, every transaction creates an SAP document.

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MM-FI Integration in SAP R/3

Like SD and MM integration as highlighted before, SAP also cover some of the integration area related to Material Management and Financial Accounting components of SAP R/3. Under this article, some of the important steps related MM-FI Integration have been highlighted. This complete integration is covered in SPRO under the node Valuation and Account Assignment (Account Determination & Automatic Postings).

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SAP Controlling Basics

 

Controlling Area: An organizational unit within a company, used to represent a closed system for cost accounting purposes. A controlling area may include single or multiple company codes that may use different currencies. These company codes must use the same operative chart of accounts.
Cost center std Hierarchy : Indicated hierarchy of cost center groups in which all cost centers in a controlling area are gathered together.
Cost element : A cost element classifies the organization’s valuated consumption of production factors within a controlling area. A cost element corresponds to a cost-relevant item in the chart of accounts.

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SAP Finance Basics

 

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

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

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

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