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Posting periods || Account Payable || Taxes || Business Area Toggle navigation SAP FI CO SAP FICO SAP HR Netezza Pega Python Big Data Teradata iExpertify September 27, 2014 Business processes to be covered in SAP FICO implementation Financial Accounting (FI) Management Accounting (CO) Financial supply chain Management (FSCM) module will cover the following business processes: Master Data Maintenance in Accounting. General Ledger Accounting. Accounts Payable. Accounts Receivable / Collection Management /Credit management. Bank Accounting /Cash Management. Asset Accounting. Closing Procedures. Financial Information System in FI. Cost Center Accounting. Profit Center Accounting. Internal Order. Profitability accounting. September 27, 2014 Sections in a SAP FICO Business Blueprint GMC-SAP Implementation 1 Business Scenarios 1.1 FICO Scenarios 1.1.1 Business Processes 1.1.1.1 New general Ledger and Profit Center Accounting 1.1.1.2 Accounts Payable 1.1.1.3 Accounts Receivable 1.1.1.4 Collections Management 1.1.1.5 Bank Accounting 1.1.1.6 Fixed Asset Accounting 1.1.1.7 Financial Closing 1.1.1.8 Controlling 1.1.1.9 Cost Center Acounting 1.1.1.10 Profit Center Accounting 1.1.1.11 Profitability analysis May 16, 2014 Product Cost Controlling • Product Cost Controlling is concerned with all aspects of planning the cost of producing products or services, as well as tracking and analyzing the actual costs that are incurred in the production process. • Product Cost Controlling consists of the following components: – Product Cost Planning (PCP) refers to the creation of cost estimates for the production of goods and services. – Cost Object Controlling (OBJ) focuses on the costs incurred in the production of a product or service, which are collected on a cost object (such as a production order.) Which cost object is used depends on your controlling requirements. It may be a sales order, a production order, a process order or a production cost collector. Cost Object Controlling is used to calculate work in process, scrap costs and variances at period close. These values can be transferred to other modules like CO-PA, EC-PCA and FI. – Actual Costing (ACT) is used to calculate the actual product costs at period close. Actual costing uses the Material Ledger to store material prices in up to three currencies and according to three valuation strategies (group, legal and profit center). Each material movement is recorded in the Material Ledger with a standard price during the period. Material settlement is used to transfer the results to the material master as a weighted average price for the period. May 15, 2014 Overhead Cost Controlling • Overhead costs are costs which cannot be assigned directly to the production of goods or services. You assign all overhead costs to the locations where they occur or to the actions leading to their creation. You have to plan, record and analyze the costs on appropriate objects. • Cost elements are used to record, distribute, and allocate the operational expense of an enterprise on a costing basis. • Cost Element Accounting (CO-OM-CEL) indicates which costs and revenues have occurred and is used for reconciliation of cost controlling with the Financial Accounting (FI) module. • The cost center represents a separate location of cost occurrence within a controlling area. The definition can be based on functional requirements, allocation criteria, activities or services provided, physical location, and/or area of responsibility. • The activity type defines the various activities produced or supplied by a cost center. Activity inputs from one cost center to other cost centers, orders, or business processes represent utilization of the cost center’s resources. Valuation of the activity quantity takes place with a price calculated on the basis of business or managerial aspects. • The business process gathers together sequences of activities within an organization across cost center boundaries. It can be used to structure organizational processes according to function. • Overhead orders are used to plan, collect, and analyze costs of an organizational action (measure). • The different CO objects support multiple methods developed by SAP for allocation of values and quantities, each according to the managerial accounting function of the object in question. May 13, 2014 Purpose of Controlling Components • Controlling includes all functions required to internal managerial accounting and covers different areas for control. • CO-OM Overhead Cost Controlling: Overhead costs are costs that are not directly related to a product, and thus cannot be assigned directly to the cost of goods. They are divided into direct and indirect costs. The purpose of CO-OM is planning, allocating, controlling and monitoring overhead costs. • CO-PC Product Costing Controlling: Product costing is a tool for planning costs and establishing prices for materials. It is used to calculate the costs of goods sold for each product unit. • CO-PA Profitability Analysis: Lets you evaluate segments of your business operations, which can be defined according to products, customers, orders and any combination of these or other organizational structures (such as sales organizations or business areas). The goal is to determine the contributions of those segments to your company’s profits (margin reporting). • CO/EC*-PCA Profit Center Accounting: Provides profitability-oriented performance information for internal organizational units (profit center) and assign respon sibility to their performance. It can be used to generate financial statements for the corresponding organizational units. (* SAP classifies PCA into the Enterprise Controlling (EC) component.) May 12, 2014 Components of the CO module • The various CO components can be classified into different groups. The classification indicates the general purpose of a given component. • Management of an enterprise requires the use of different tools for different situations. If you want to analyze profit, for example, then you need a tool appropriate to the view you wish to take (e.g., by product or by responsibility center). The Profitability Accounting component group has two tools (components) that are available for addressing this business need. • Similarly, the Overhead Cost Controlling and Product Cost Controlling component groups offer tools appropriate to other types of business requirements. • Overhead Cost Controlling: – Cost and Revenue Element Accounting – Cost Center Accounting – Overhead Order Accounting – Activity-Based Costing • Product Cost Controlling: – Product Cost Planning – Cost Object Controlling – Actual Costing/Material Ledger • Profitability Analysis Profit Center Accounting May 12, 2014 External vs. Internal Accounting Standards Versus Flexibility • The SAP application component Controlling (CO) contains all accounting functions necessary for effective controlling. If an organization divides accounting into internal and external viewpoints, CO represents internal accounting because it provides information for managers – that is, to those who are inside an organization and who are charged with directing and controlling its operations. CO includes cost and revenue accounting and, together with the Enterprise Controlling (EC) application components Profit Center Accounting (EC-PCA) and Executive Information System (EC-EIS), covers all aspects of American-style managerial accounting. It offers all controlling opportunities without being limited to legal requirements. • With the SAP application component FI you will create your financial statements, like the balance sheet and the P&L-statement. These procedures have to be according to standards or accepted accounting principles like US-GAAP or IAS. • External accounting is referred to as financial accounting. It produces the financial statement view of the organization. • Internal accounting is referred to as managerial accounting or controlling. It focuses on...