FI Overview

1. GL AM AR FI AP CON Special Ledger FI Overview

2. Financial Accounting G/L Reporting • Legal or external • reporting • Balance sheet • Income Statement • Statement of Financial Position

3. External Accounting Financial Position Profit & Loss Bankers, Lenders Balance Sheet Stockholders External Auditors IRS, Taxing Authority SEC Financial Accounting

4. COMPONENT Cost Center Acctg - CO-CCA Internal Orders CO-OPA Projects - PS Product Costing - CO-PC Activity Based Costing Profitability Analysis-CO-PA Profit Center Acctg-EC-PCA Executive Info. System-EC-EIS VIEW Costs Costs Costs Costs Costs Profits Profits Any data ROLE Cost Tracking Small Projects Large Projects Product Costing Cost Management Margin by multi-cuts Profit & Loss Repsons. Cross-module reports CO/EC Overview

5. Controlling CO Reporting Internal management reporting Reports by cost centers or other cost “objects” and cost elements Cost centers Orders and Projects Budget/plan Actual vs. plan

6. Internal Accounting Departmental Expense Report Salaries 10,000 Overhead 8,000 Other 5,000 Total 23,000 Executives Controllers Senior Management Department Managers Controlling

7. FI CO Internal management reporting Reports by cost centers and cost elements Cost Center Reports Legal or external reporting Reports by accounts Balance Sheet Income Statement FI and CO comparison

8. FI/CO Organizational Structures • Client • Company • Chart of Accounts • Company Code • Business Area • Credit Control Area • Controlling Area

9. CLIENT

10. Client • Highest hierarchical level in an SAP system • A complete database containing all the tables necessary for creating a fully integrated system • Master records are created at the client level

11. CLIENT COMPANY

12. Company • Consolidated financial statements are created at the company level • A company can include one or more company codes • All company codes must use the same chart of accounts and fiscal year

13. CLIENT COMPANY CHART OF ACCOUNTS

14. Chart of Accounts • A listing of the accounts • A chart of accounts must be assigned to every company code • Several company codes can use the same chart of accounts • A different chart of accounts can be used if a different grouping of the chart of accounts is required

15. CLIENT GERMAN CHART OF ACCOUNTS US CHART OF ACCOUNTS Co code 2000 Co code 3000 Co code 4000 Co code 5000 Co code 1000

16. CLIENT COMPANY COMPANY CHART OF ACCOUNTS CHART OF ACCOUNTS COMPANY CODE COMPANYCODE COMPANY CODE

17. Company Code A BALANCED SET OF BOOKS • A required structure • A legally independent entity • The smallest organizational unit for which accounting can be carried out • The level where business transactions are processed • The level where accounts are managed • The level where legal individual financial statements, such as the balance sheet and the profit and loss statement, are created

18. COMPANY COMPANY CHART OF ACCOUNTS CHART OF ACCOUNTS CREDIT CONTROL AREA CREDIT CONTROL AREA COMPANY CODE COMPANY CODE COMPANY CODE CLIENT

19. Credit Control Area • An organizational unit or area of responsibility created to control customer credit limits • A company code is assigned to one and only one credit control area • Multiple company codes can be assigned to one credit control area

20. CLIENT COMPANY COMPANY CHART OF ACCOUNTS CHART OF ACCOUNTS CONTROLLING AREA CONTROLLING AREA COMPANY CODE COMPANY CODE COMPANY CODE

21. Controlling Area • An organizational unit defining the company's cost/ managerial accounting operations • A company code is assigned to one and only one controlling area • A controlling area can have multiple company codes assigned to it • This allows cross company cost allocations and reporting

22. DECEMBER FEBRUARY JANUARY 1 2 3 4 5 6 7 Fiscal Year Variant • Determines the fiscal year • Calendar year or • non-calendar year • Allows the use of special • periods to aid year-end • closing • Is assigned to a company • code