Can anyone supply FI-CO material in SAP.?

Can anyone supply FI-CO material in SAP.?..

Answer / sirisha

What is the?
SAP FI Module
- Introduction -
Page 1 of 4
Introduction
The SAP FI Module has the capability of meeting all the
accounting and financial needs of an organization. It is
within this module that Financial Managers as well as other
Managers within your business can review the financial
position of the company in real time as compared to legacy
systems which often times require overnight updates before
financial statements can be generated and run for
management review.
The real-time functionality of the SAP modules allows for
better decision making and strategic planning. The FI
(Financial Accounting) Module integrates with other SAP
Modules such as MM (Materials Management), PP (Production
Planning), SD(Sales and Distribution), PM (Plant
Maintenance),and PS (Project Systems).
The FI Module also integrates with HR(Human Resources)
which includes PM(Personnel Management), Time Management,
Travel Management, Payroll. Document transactions occurring
within the specific modules generate account postings via
account determination tables.
The FI (Financial Accounting) Module components.
The FI Module comprises several sub-modules as follows:
o Accounts Receivables
o Accounts Payable
o Asset Accounting
o Bank Accounting
o Consolidation
o Funds Management
o General Ledger
o Special Purpose Ledger
o Travel Management
Accounts Receivables records all account postings generated
as a result of Customer sales activity.
These postings are automatically updated in the General
Ledger. It is within the Accounts
Receivables Module that you can monitor aging of the
receivables and generate customer analysis. The Accounts
Receivable Module also integrates with the General ledger,
Sales and Distribution, and Cash Management Modules.
Accounts Payable records account postings generated as a
result of Vendor purchasing activity. Automatic postings
are generated in the General Ledger as well. Payment
programs within SAP enables the payment of payable
documents by check, EDI, or transfers.
Asset Accounting is utilized for managing your company’s
Fixed Assets. SAP allows you to categorize assets and to
set values for depreciation calculations in each asset
class.
Bank Accounting allows for management of bank transactions
in the system including cash management.
Consolidation enables the combining of financial statements
for multiple entities within an organization. These
statements provide an overview of the financial position of
the company as a whole.
Funds Management allows management to set budgets for
revenues and expenses within your company as well as track
these to the area of responsibility.
General Ledger is fully integrated with the other SAP
Modules. It is within the General Ledger that all
accounting postings are recorded. These postings are
displayed in real-time providing up-to-date visibility of
the financial accounts.
Special Purpose Ledger is used to define ledgers for
reporting purposes. Data can be gathered from internal and
external applications.
Travel Management provides management of all travel
activities including booking trips and handling of expenses
associated with travel.
What is the?
SAP FI Module
- Configuration -
Page 2 of 4
Primary configuration considerations:
Client, company and company code
Once a business has decided to use the SAP FI (Financial
Accounting) Module, there are several Configurations
prerequisite steps that must be completed. Determining the
organizational structure is one of the first steps in
setting up the business functions in SAP as well as your
reporting requirements.
The Organizational structure is created by defining the
organizational units consisting of the following:
o Client
o Company
o Company Code
o Business Area
A Client is the highest unit within an SAP system and
contains Master records and Tables. Data entered at this
level are valid for all company code data and
organizational structures allowing for data consistency.
User access and authorizations are assigned to each client
created. Users must specify which client they are working
in at the point of logon to the SAP system.
A Company is the unit to which your financial statements
are created and can have one to many company codes assigned
to it. A company is equivalent to your legal business
organization. Consolidated financial statements are based
on the company’s financial statements. Companies are
defined in configuration and assigned to company codes.
Each company code must use the same COA (Chart of Accounts)
and Fiscal Year. Also note that local currency for the
company can be different.
Company Codes are the smallest unit within your
organizational structure and is used for internal and
external reporting purposes. Company Codes are not optional
within SAP and are required to be defined. Financial
transactions are viewed at the company code level. Company
Codes can be created for any business organization whether
national or international. It is recommended that once a
Company Code has been defined in Configuration with all the
required settings then other company codes later created
should be copied from the existing company code. You can
then make changes as needed. This reduces repetitive input
of information that does not change from company code to
company code as well as eliminate the possibility of missed
data input.
When defining company codes, the following key are as must
be updated:
o Company Code Key- identifies the company code and
consists of four alpha-numeric characters. Master data and
business transactions are created by this key.
o Company Code Name- identifies the name of the
business organization within your organizational structure.
o Address- identifies the street address, city,
state, zip code for the company code created. This
information is also used on correspondence and reports.
o Country- identifies the country to which your
business is based. Country codes within SAP are based on
ISO Standards.
o Country currency- identifies the local currency for
the company code that you have defined.
o Language- identifies the language to be used for
you company code and is also used for text in your
documents. SAP unlike other applications, offers over
thirty languages including EN( English) , ES (Spanish), FR
(French), DE (German), EL (Greek), IT(Italian), AR(
Arabic), ZH (Chinese) , SV (Swedish) , and JA (Japanese) to
name a few.
What is the?
SAP FI Module
- More Configuration -
More FI configuration considerations:
Business Area, COA, GL, Fiscal year and Currencies
Business Area is optional and is equivalent to a specific
area of responsibility within your company or business
segment. BA (Business Area) also allows for internal and
external reporting.
Another configuration requirement for set-up in SAP are the
Basic settings consisting of the following:
o Chart of Accounts(COA)
o Fiscal Year Variants.
o Currencies
The COA (Chart of Accounts) lists all General Ledger
accounts that are used by the organization. It is assigned
in configuration to each company code and allows for daily
General Ledger postings.
The General Ledger accounts are made up of such data as
account number, company code, a description of the account,
classification of whether the account is a P & L Statement
Account or a Balance Sheet Account.
• Control data of the GL Account is where currency is
specified, Tax category (posting without tax allowed) ,
marking the account as a reconciliation account ( e.g.
Customer, Asset, Vendors, Accounts Receivable) or not.
• Marking the G/L Account as a “reconciliation”
account allows for postings to an Asset Account ( for
example) as well as automatic update to the G/L Account.
• Configuration prevents direct postings to
reconciliation accounts thereby assisting in maintaining
integrity of the data.
• This allows reconciliation between the sub-ledger
and general ledger to always be guaranteed.
• Within the General Ledger control data , you can
also designate whether line item display is possible in the
account. The system then stores an entry per line in an
index table which links back to the account. (Display of
line item details are then available for reporting
purposes ,etc.)
• Open Item Indicators can be set on the G/L Account
allowing for better management of open items. Examples
include: Bank Clearing Accounts, GR/IR Clearing Accounts,
Payroll, etc.
Fiscal Year configuration is a must and can be defined to
meet your company’s reporting periods whether Fiscal (any
period combination that is not calendar) or Calendar (Jan-
Dec).
• Posting Periods are defined and assigned to the
Fiscal Year.
• Within the periods you specify start dates and
finished dates.
• SAP allows for 12 posting periods along with
specially defined periods that can be used for year-end
financial closing.
Currencies are another basic configuration setting
requirement which defines your company’s legal means of
payment by country.
• It is recommended that all Currency set-ups in SAP
follow the ISO Standards.
• The ISO Standards ensure Global conformity across
businesses worldwide utilizing SAP
What is the?
SAP FI Module
- Integration Points -
Page 4 of 4
What are some of the integration points of the FI module?
SAP is marketed as a fully integrated system, therefore
knowing some of the integration points enable the Users to
better understand the Modules.
• Organization units are not only defined in FI
(Financial Accounting) but also in other SAP Modules. The SD
( Sales & Distribution) Module requires the set-up of Sales
Organizations, Distribution Channels and Divisions ;
Purchasing requires purchasing organizations, plants, and
storage locations; and CO (Controlling) requires a
Controlling area to be defined.
• To transfer data between FI(Financial Accounting)
and CO (controlling) as well as other modules, a Company
Code must be assigned to each of the Modules.
• Business Areas must be entered when generating
business transactions if you would like visibility of those
transactions impacting a certain BA(Business Area). You can
also update your Master Records to include BA(Business
Area) for example Cost Center.
• Document postings are automatically posted in the
year and periods that you created in the Fiscal Year
variant set-ups based on the month, start and end dates to
which postings are allowed within a given period as
defined.
• There are several integration points in SAP, the
above lists a few .
We hope you have enjoyed reading this tutorial.

What is the?
SAP CO Module
- Introduction -
Page 1 of 4
Introduction
The SAP CO (Controlling) Module provides supporting
information to Management for the purpose of planning,
reporting, as well as monitoring the operations of their
business. Management decision-making can be achieved with
the level of information provided by this module.
Some of the components of the CO(Controlling) Module are as
follows:
• Cost Element Accounting
• Cost Center Accounting
• Internal Orders
• Activity-Based Costing ( ABC)
• Product Cost Controlling
• Profitability Analysis
• Profit Center Accounting
The Cost Element Accounting component provides information
which includes the costs and revenue for an organization.
These postings are automatically updated from FI
(Financial Accounting) to CO (Controlling). The cost
elements are the basis for cost accounting and enables the
User the ability to display costs for each of the accounts
that have been assigned to the cost element. Examples of
accounts that can be assigned are Cost Centers, Internal
Orders, WBS(work breakdown structures).
Cost Center Accounting provides information on the costs
incurred by your business. Within SAP, you have the ability
to assign Cost Centers to departments and /or Managers
responsible for certain areas of the business as well as
functional areas within your organization. Cost Centers can
be created for such functional areas as Marketing,
Purchasing, Human Resources, Finance, Facilities,
Information Systems, Administrative Support, Legal,
Shipping/Receiving, or even Quality.
Some of the benefits of Cost Center Accounting : (1)
Managers can set Budget /Cost Center targets; (2) Cost
Center visibility of functional departments/areas of your
business; (3) Planning ; (4) Availability of Cost
allocation methods; and (5) Assessments/Distribution of
costs to other cost objects.
Internal Orders provide a means of tracking costs of a
specific job , service, or task. Internal Orders are used
as a method to collect those costs and business
transactions related to the task. This level of monitoring
can be very detailed but allows management the ability to
review Internal Order activity for better-decision making
purposes.
Activity-Based Costing allows a better definition of the
source of costs to the process driving the cost. Activity-
Based Costing enhances Cost Center Accounting in that it
allows for a process-oriented and cross-functional view of
your cost centers. It can also be used with Product Costing
and Profitability Analysis.
Product Cost Controlling allows management the ability to
analyze their product costs and to make decisions on the
optimal price(s) to market their products. It is within
this module of CO (Controlling) that planned, actual and
target values are analyzed. Sub-components of the module
are:
• Product Cost Planning which includes Material Costing
( Cost estimates with Quantity structure, Cost estimates
without quantity structure, Master data for Mixed Cost
Estimates, Production lot Cost Estimates) , Price Updates,
and Reference and Simulation Costing.
Cost Object Controlling includes Product Cost by Period,
Product Cost by Order, Product Costs by Sales Orders,
Intangible Goods and Services, and CRM Service Processes.
• Actual Costing/Material Ledger includes Periodic
Material valuation, Actual Costing, and Price Changes.
Profitability Analysis allows Management the ability to
review information with respect to the company’s profit or
contribution margin by business segment. Profitability
Analysis can be obtained by the following methods:
• Account-Based Analysis which uses an account-based
valuation approach. In this analysis, cost and revenue
element accounts are used. These accounts can be reconciled
with FI(Financial Accounting).
• Cost-Based Analysis uses a costing based valuation
approach as defined by the User.
Profit Center Accounting provides visibility of an
organization’s profit and losses by profit center. The
methods which can be utilized for EC-PCA (Profit Center
Accounting) are period accounting or by the cost-of-sales
approach. Profit Centers can be set-up to identify product
lines, divisions, geographical regions, offices, production
sites or by functions. Profit Centers are used for Internal
Control purposes enabling management the ability to review
areas of responsibility within their organization. The
difference between a Cost Center and a Profit Center is
that the Cost Center represents individual costs incurred
during a given period and Profit Centers contain the
balances of costs and revenues.
Primary configuration considerations
There are several configuration steps that must be
considered when implementing the CO (Controlling) Module.
Creating the Controlling area is one of the first steps in
the CO (Controlling) configuration process. SAP has
provided standard controlling areas and company codes which
can be utilized as a basis for creating your company’s
Controlling Area. The SAP Standard for Controlling Area
is “0001” and for company code is “0001”.
It is recommended that these be used as a basis to create
the Controlling Area or Company Code that you would like
to define . Certain defaults setting such as number ranges
have already been set-up in the standard SAP settings,
thereby eliminating the need to redo this configuration
requirement. Through the SAP Configuration process, you can
create a copy of the Standard Controlling Area and Company
Code, then update the other fields as needed including the
four character alpha numeric field which identifies these
areas. (You may want to change the controlling area
from “0001” to “A001” and the Company Code from “0001” to “
AA01” as an example.)
Keep in mind that Company Codes are assigned to Controlling
Areas and affect the COA (Chart of Accounts), the Fiscal
Year Variants, and Currency set-ups. Cost Center hierarchy
and Reconciliation ledger settings are also include in the
Controlling Area set-up.
The Control Indicator activates and deactivates certain
functions in the Controlling Area. The Controlling Area can
also be used for cross-company code business transactions.
To enable this function the Controlling Area must be
assigned to all company codes used for cross-company code
accounting.
Number ranges
Configuration in the CO (Controlling) Modules requires
maintenance of number ranges for documents generated from
business transactions. A systems’ generated document number
is assigned for every CO (Controlling) posting. These
numbers are sequential and are required to be assigned to
number range groups. The number range groups consists of
two number intervals, one for internal document numbering
and one for external document numbering. The SAP R/3 system
keeps track of those document numbers that are externally
generated and fed to SAP via batches and User manual input,
otherwise, the system generates the next internally
assigned document number for the transaction posted.
As previously stated when defining the Controlling Area,
you have the ability to copy the Standard SAP Controlling
Area “0001” which already has the number ranges defined
eliminating the need for maintenance of number ranges.
Keep in mind that you also have the flexibility to change
number ranges and number range groups to meet your business
needs. As a caution, never overlap number intervals in a
group . For example, if you decide to assign number range
interval 10000000 thru 199999999 to the number range
group “05”, you can not assign it to number range
group “06”. Number ranges should never be transported for
data consistency purposes, therefore create these manually
in each system.
Within the CO (Controlling) Module, you can configure Plan
Versions. Maintaining Plan Versions allows for set-up of
planning assumptions and determination of plan rates for
allocation and plan activity purposes. The SAP Standard
Version “000” is created for a five year fiscal year plan.
It is recommended that the standard version be utilized for
your plan/actual comparisons if you do not require multiple
plan versions. SAP always allows the flexibility to create
additional Plan versions by coping the Standard
Version “000” and changing certain fields as required.
There is also the option of defining and creating a totally
new Plan Version.
Other configuration
After the Controlling Area, Number Ranges, and Plan
Versions have been defined and maintained, then settings
for the other components in the CO(Controlling) Module
should be maintained. (Cost Center Accounting, Cost Element
Accounting, Activity-Based Costing, Internal Orders,
Product Cost Controlling, Profitability Analysis, and
Profit Center Accounting.)
The Account Assignment Logic allows configuration for
Validation and Substitution Rules whose purpose is to check
certain input values as defined by the User.
More specifically, Validations allow for business
transactions to either post or not post documents based on
the criteria defined in the validation rule. Certain input
conditions are checked as defined by the User and if those
conditions are met then the document(s) are updated and/or
posted in the system. If the condition is not met, then an
error message is generated to the User with a brief
explanation of the error. These messages are defined in
Configuration and can be identified as a warning, error, or
a note. You also have the option to deactivate messages.
Substitutions on the other hand, checks input values and
replaces the values with another value if the criteria as
defined is met.
Maintaining Currency and Valuation Profiles allows for the
definition of valuation approaches to be used in accounting
components . These valuation profiles are checked in the
system when activated in the Controlling Area. Certain
rules apply if there is a need to maintain the currency and
valuation profiles: (1) Company Code Currency must be
assigned to a legal valuation approach, (2) Valuation
approaches must also be maintain in the material ledger,
and (3) Profit Center valuations can only be maintained if
you are using Profit Center Accounting.
The CO(Controlling)Module has multiple configuration steps
that must be followed for complete implementation of this
module. Each sub-component of the CO (Controlling) Module
has it’s level of configuration requirements. Once you have
defined your business needs in the Controlling Area, a
determination can be made as to what should be configured
and what you do not need.
We hope you have enjoyed reading this tutorial.

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