3. ERP – Enterprise Resource planning
ERP is an application software that integrates all
departments and functions across a company onto a
single
computer system that can serve all those different
department’s particular needs.
• Thus:
• It integrates data
• It Processes the data and
• It Reproduces the data as per
the requirement
FOR
• ENTIRE ENTERPRISE
4. Object Migration
Program A
Table A
Screen A
Program A
Table A
Screen A
Program A
Table A
Screen A
Development
Corrections and Transport
QA Testing Production
7. Organizational Structure
• The system can be configured to reflect a company’s
• organizational structure and has the flexibility to incorporate
• future changes in that structure.
• Chapter Objectives
– Describe the Organizational Structure
and how it relates to the
– Financial Accounting module.
– Define each Organizational Unit in the
structure related to the
– Financial Accounting module.
18. Country and group charts of accounts
User defined financial statements
Business area balance sheets
Summary accounts for reporting and inquiry
Screen painting based on the account
Value based security
Workflow enabled authorisation
Realtime update of control accounts from
subledgers
Foreign currency revaluations at period end
General Ledger
19. Accounts Receivable (FI-AR)
• Real-time integration with the General Ledger
• Integration with Sales and Distribution (SD)
and Materials Management (MM) as a part of
the Sales Cycle
• Credit Management
• Incoming Payment Processing
• Automatic Dunning Function
20. Account
s
Receivable
30
Customer 1
Accounts Receivable
Fully integrated with G/L
Central Customer Master
Customer created only
once
Identification and
follow-up of all
transactions linked to
receivables management
Sales follow-up and cash collection
Customers follow-up and duning
Customers dunning and interest calculation
Accounts reconciliation and balance confirmation
Various analyses
21. Real-time integration with General Ledger
Integrated with Sales and Distribution
Work lists to enquire on balances of multiple customers
Control account cannot be posted to in other modules
ensuring reconciliation with the General Ledger
Flexible credit control
Tracking of bank guarantees and other statistical
postings; advances and security deposits
Management of one-time-accounts
User definable dunning procedures with multiple
dunning
Accounts Receivable
22. Accounts Payable (FI-AP)
• Real-time integration with General Ledger
• Integration with Materials Management as a part
of the
• Procurement Cycle
• Outgoing Payment Program
• Vendor Correspondence
23. Account
s
Payable
Vendor 1
5
0
Accounts Payable
Fully integrated with G/L
Central Vendor Master
Data
Vendor created only once
Identification and
follow-up of all
transactions linked to
payables management
Purchases follow-up and payment realisation
Accounts reconciliation and balance confirmation
Various analyses
25. Real-time integration with General Ledger
Work lists to enquire on balances of multiple vendors
Management of one-time-accounts
Tracking of bank guarantees and other statistical
postings; advances and security deposits
Customer-vendor relationship for net
payables/receivables
Control account cannot be posted to in other
modules ensuring reconciliation with the
General Ledger
TDS deduction supported
Accounts Payable
26. KKaappi
ittaałłyy
8
0
Controllin
g Ledge
r
CO - Controlling Ledger
Fully integrated with G/L
Fully integrated with all modules
(FI, MM, SD, PP, PM, QM)
Cost Centers accounting,
Orders accounting, Primary and
secondary costs follow up.
Internal costs allocations -
Distribution and assessement cycles.
Internal reporting (Cost Centers, Profit Centers)
Profitability analysis (customer, product, segment, etc ..)
Product costing (plant, family, process, order, etc ..)
Internal orders (maintenance, rework, investments, etc ..)
Planning (budget, estimate, standard costs, etc ..)
Reporting and variance analysis (Act/Plan/Var)
27. 12
0
Fixed
Assets
Building 1
Fixed Assets Ledger
Fully integrated with G/L
Central assets book
Assets groups and
different valuation
and depreciation methods
(Tax, IFRS, etc…)
Registration and follow-up
of all transactions linked to
fixed assets management
Assets creation
Depreciation calculation and booking
Different valuation methods
Assets movements
Assets under construction and investments follow-up
Assets tax calculation and booking.
30. CO Integration Model
Cost elements
Cost centers
Calc.
C
o
n
t
r
o
l
l
i
n
g
a
r
e
a
P
r
o
f
i
t
C
e
n
t
e
r
Cost object
Profitability segments
Orders
Projects
Processes
CO-
PA
CO-
PA Revenue elements Calc.
EC-
PCA
.
.
.
Asset portfolio
CO-
CCA
CO-
CCA
CO-
ABC
CO-
OPA
CO-
ABC
CO-
PC
AA
Labou
r
Confirm-
ation
FI
HR
Equit
y
AM
PM
PP
Ext.
procurmt
Materi
al
MM
Billing doc. SD
31. Profit
Center
Accounting
Product Cost
Controlling
Overhead Cost
Controlling
Profitability Analysis
Balance Sheet
Account
Expense
Account
Revenue
Account
Balance
Sheet
Account
Primary Cost
Element
Revenue
Element
Secondary Cost
Element
Financial
Accounting
Cost Element Accounting
Accrual Cost
Element
EC-
PCA
CO
PC
CO
OM
CO
PA
CO
CEL
FI
Cost Elements and Accounts
32. Cost Centre Hierarchy
Accounts Marketing Admin.
Group
102
202
302
402
101
201
301
401
Accounts 101
Marketing 102
Administration 105
Region A
105
205
305
405
CCG2 CCG3
CCG 1 CCG4 CCG5
Branch B
Accounts 201
Marketing 202
Administration 205
35. Profit
Center
Accounting
Overhead Cost
Controlling
Financial
Accounting
EC-
PCA
CO
OM
CO
CEL
FI
Company Code 0002
Clearing
Account
100
Expense
Account
100
Company Code 0001
Expense
Account
100
Clearing
Account
100
$ 100
Cost Element Accounting
Sender Receiver Relations per:
Cost Element
Company Code
Business Area
Function Area
Cost
Center
Cost Center in
Company
Code
0001
Cost Center in
Company
Code
0002
Reconciliation between FI and
CO
37. Fiscal Year Variant Description
K2
K4
V3
Calendar year, 2 special periods
Calendar year, 4 special periods
Fiscal year, 4 special periods
Properties of Fiscal Year Variant “K4”
Accounting Organization Data
Fiscal Year Variant
38. Var. A From Acct. To Acct. From Per. 1 Year To Per. Year
0001 ALL 1 2000 12 2000
0001 Cus 0 99999 1 2000 12 2000
0001 Ven AAAAAAAAAA ZZZZZZZZZZ 2 2000 12 2000
Account Type (A)
+ = Valid for all Account Types (masking)
A = Assets
D = Customers (A/R)
K = Vendors (A/P)
M = Materials
S = General Ledger
Accounts
Posting Period Variant
39. G/L Account Custome
r
Vendor
Create in ...
Chart of
Accounts and
Company Code
Client
and
Comp
any
Code
Activities
Create
Change
Display
Master Records - General
Information
