Summary of TFIN50_2 ZRH.pdf

Financial Accounting TFIN 50_2 Summary

Prepared by: Zeeshan R Haryani


Prepared By Zeeshan Raza Haryani ACA, ACCA Finalist Certified FICOBW [email protected]

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Contents Unit 1 Fundamentals ...................................................................................................................................... 4 Lesson 1 Customer/Vendor Accounts ....................................................................................................... 4 Lesson 2 Bank Accounts............................................................................................................................ 4 Lesson 3 Simple Documents in SAP Financial Accounting...................................................................... 5 Unit 2 Automatic Payments ........................................................................................................................... 7 Lesson 1 Payment Run............................................................................................................................... 7 Lesson 2 Payment Program Configuration ................................................................................................ 7 Lesson 3 Running Payment Program......................................................................................................... 9 Lesson 4 Payment Medium Workbench .................................................................................................. 11 Lesson 5 Debit Balance Check ................................................................................................................ 13 Lesson 6 - Automating the Payment Process.............................................................................................. 13 Unit 3 Automatic DunningPayments ........................................................................................................... 14 Lesson 1 Dunning Run............................................................................................................................. 14 Lesson 2 Dunning Program Configuration .............................................................................................. 14 Lesson 3 Parameters for Dunning Run .................................................................................................... 16 Lesson 4 Dunning Run.............................................................................................................................. 16 Lesson 5 Editing Dunning Proposal ........................................................................................................ 17 Lesson 6 Printing Dunning Notices ......................................................................................................... 17 Unit 4 Correspondence ................................................................................................................................ 19 Lesson 1 Correspondence Overview ....................................................................................................... 19 Lesson 2 Correspondence Types ............................................................................................................. 19 Unit 5 Country Specifics.............................................................................................................................. 21 Lesson 1 Check Management ..................................................................................................................... 21 Unit 6 Overview of Closing Activities ........................................................................................................ 22 Lesson 1 Month-End and Year-End Closing Processes ............................................................................. 22 Unit 7 Financial Statements ......................................................................................................................... 23 Lesson 1 Financial Statement Version........................................................................................................ 23 Lesson 2 Drilldown Reporting.................................................................................................................... 24 Unit 8 Receivables & Payables.................................................................................................................... 25 Lesson 1 Balance Confirmation.................................................................................................................. 25 Lesson 2 Foreign Currency Valuation ........................................................................................................ 25 Lesson 3 Value Adjustments ...................................................................................................................... 26 Lesson 4 Regrouping .................................................................................................................................. 27 Unit 9 Accruals and Deferrals...................................................................................................................... 28 Lesson 1 Accrual / Deferral Postings.......................................................................................................... 28 Lesson 2 Accrual Engine ............................................................................................................................ 28 Unit 10 Technical, Organizational and Documentary Steps........................................................................ 32 Lesson 1 Technical Steps............................................................................................................................ 32 Lesson 2 Documentary Steps...................................................................................................................... 32 Lesson 3 Document Splitting...................................................................................................................... 32 Lesson 4 CO-FI Reconcialiation................................................................................................................. 32 Lesson 5 Ledger Group Postings ................................................................................................................ 33 Unit 11 Closing Cockpit .............................................................................................................................. 35 Lesson 1 Closing Cockpit ........................................................................................................................... 35

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Unit 12 Additional Material......................................................................................................................... 38 Lesson 1 Financial Statement Adjustments in Classic General Ledger Accounting............................... 38 Lesson 2 Controlling................................................................................................................................ 38 Lesson 3 Cost of Sales Accounting ......................................................................................................... 38 Lesson 4 General Tax Processing ............................................................................................................ 39 Lesson 5 Tax Reporting in USA.............................................................................................................. 40 Lesson 6 Tax Reporting in Germany ....................................................................................................... 40 Lesson 7 Tax Reporting in European Union............................................................................................ 40 Lesson 8 - Reporting in Accordance with German Foreign Trade Regulations......................................... 40 Lesson 9 Consolidation............................................................................................................................ 40

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Unit 1 Lesson 1


Fundamentals Customer/Vendor Accounts

Like G/L accounts, customer/vendor accounts have two segments in the financial accounting view: o One segment at client level that contains general data. This data can be accessed throughout the whole organization. o A segment with company code specific data at company code level. Important fields in master data include: o Search term: You can enter an abbreviation for the customer/vendor name in this field. o Group key: You can group together customers or vendors who belong to one corporate group with a user-defined group key. o Accounting clerk: You must save the name of the clerk under an ID. You can enter this code in the customer/master records, for which the clerk automatically printed on all correspondence. The code is also used to sort dunning and payment proposal lists. o Explanatory texts can be entered in every segment. Line item display and open item management are always preset to ON for every customer/vendor account. As with G/L accounts, you can bundle AP/AR accounts into different account groups which controls o The account number range, to make sure that all the accounts in the group have similar account numbers. o The field status of the account fields. All accounts of an account group have the same screen layout. o Whether the account is used as a one-time account (for one-time customers or vendors). The screen layout for customer/vendor master data is defined by three field status definitions: o Account group-dependent field status - Usually the field status is controlled only by the account group. This way, all the accounts in an account group have the same screen layout o Transaction-dependent field status - The field status can also depend on the master data transaction (Activity). Whereas you can use the account group-dependent field status to define the field status for all three segments, the transaction-dependent field status only provides access to the client and company code segments. Reason: The transactions take effect locally. In other words, they do not affect the sales area segment. o Company code-dependent field status - If the field status is controlled by the company code, you can hide (suppress) certain fields in the company code segment for certain company codes.

Lesson 2

Bank Accounts

The International Bank Account Number (IBAN) 34 alphanumeric characters are an internationally recognized and unique number that identifies a specific bank account. It was designed by the International Organization for Standardization (ISO) and the European Committee for Banking Standards (ECBS) to facilitate the handling of international payment transactions. We can enter it as follows: o The IBAN can only be entered in a vendor or customer master record if the business partner provides his or her IBAN and requests the entry. Page 4 of 41



o When you enter an IBAN for new bank details, the system can generate the country-specific bank details for certain countries. If a customer is also a vendor, or vice versa, the payment and the dunning program can clear open items against each other. To clear open items, the following steps are required: o The vendor account number must be entered in the customer account; the customer account number must be entered in the vendor account o Each company code can decide separately whether it wants to clear open items. If clearing is to be used, you have to select the Clearing with Vendor field in the customer account, or the corresponding field in the vendor account. At the client and company code level, you can enter an alternative payer/payee. The entry in the company code segment has higher priority than the entry at client level. In case of head office and branch accounts, all items posted to a branch account are automatically transferred to the head office account. Each bank that is used must have a bank master record in the bank directory in the system. Bank master data can be copied into the bank directory manually or automatically. Each bank master record in the bank directory is uniquely identified by the bank country and a bank key. The house bank is the bank used for internal business. A bank becomes a house bank when you assign a house bank ID to it. The payment program uses the house bank ID to determine the bank to be used. There are four ways to create bank master data: o When entering bank information in the customer or vendor master record, or in the Customizing for house banks: o Using the Create Bank transaction in the Accounts Receivable/Payable master data menu. o The bank directory can be imported from disk or tape which can be obtained from one of the country banking organizations. o Customers that use the lockbox function can create a batch input session that automatically updates customer banking information in the master record. The house bank ID and the account ID together uniquely identify an account. An account ID can only be used once for each house bank. You can create several accounts, each with a separate account ID, for each house bank. This combination is entered in a G/L account that represents the bank account in the general ledger. A G/L account must be created for each bank account. This G/L account is assigned to the bank account and vice versa. Both accounts must have the same account currency.

Lesson 3

Simple Documents in SAP Financial Accounting

As a rule, at least one document is created for each business transaction. Each document receives a unique document number. Document numbers can be assigned either internally (by the system) or externally (by the user). The number is assigned when the document is entered. Every document is uniquely identified by the following fields: o Document number o Company code o Fiscal year Documents in SAP Financial Accounting consist of: o A document header (information that applies to the entire document) Page 5 of 41



o Between 2 and 999 line items (information that is specific to that line item). Two important control keys: o Document type for the document header o Posting key for the line items

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Unit 2 Lesson 1


Automatic Payments Payment Run

The SAP payment program lets you automatically o Select open invoices to be paid or collected o Post payment documents o Print payment media, use data medium exchange (DME), or generate electronic data interchange (EDI) The settings for the payment program are defined in three places: o In the master record for the business partner, for example: bank details and payment methods o In the items, for example, payment methods in the document, terms of payment, and so on o In Customizing for the payment program The payment process consists of four steps: o Setting parameters: In this step, the following questions are asked and answered: What is to be paid? Which payment method is to be used? When is the payment to be made? Which company codes are to be considered? How are they to be paid? o Generating a proposal: Once you have entered the parameters the system starts the proposal run. It generates a list of business partners and open invoices that are due for payment. Invoices can be blocked or unblocked for payment. o Scheduling the payment run: Once the payment list has been verified, the payment run is scheduled. A payment document is created and the general ledger and sub ledger accounts are updated. o Printing the payment media: The accounting functions are completed and a separate print program is scheduled to generate the payment media

Lesson 2

Payment Program Configuration

There are six configuration areas for the payment program: o 1. All company codes (open items are automatically counted or included) o 2. Paying company codes o 3. Payment method per country o 4. Payment method per company code o 5. Bank selection o 6. House banks The first three areas only require minimum changes. The standard system contains the common payment methods and their corresponding forms, which have been defined separately for each country. 1. All company codes o A. Control Data Payment relationships that apply across all company codes are defined here. Sending Company Code - whose payment methods are accepted (sub ledger accounting) Company code A pays for company code B. Company code B is the Page 7 of 41



sending company code. If no sending company code is defined, the paying company code is interpreted as the sending company code. Paying Company Code: This is the company code that processes outgoing payments. This is the company code that records the bank postings. The sub ledger postings are recorded in the sending company code. Payment Method Supplements: These are two-character alphanumeric codes that are at is transferred to the document when the payment is posted. Advantage: The payment media can be sorted and printed separately according to payment method supplement (such as sent to a vendor in the same building by internal mail; functions as a mail box stop (internal dispatch method)). Vendor/Customer Sp. G/L Transactions to be paid specifies which special general ledger transactions can be processed with the payment program. o B. Cash Discount and Tolerances You can define a minimum discount limit for outgoing payments. If the discount is less than this limit, it is ignored and the payment is not made until the due date for net payment. The maximum discount setting causes the maximum discount to be used, even if the cash discount period has been exceeded. Tolerance days for payables specify the number of days by which the cash discount period and period for net payment may be exceeded (delayed payment). 2. Paying company code o The minimum amount for incoming/outgoing payment specifies the minimum amount required to make an incoming or outgoing payment. o The forms that will be used for each paying company code. o If you choose no exchange rate differences, the full exchange rate differences are not posted until the bank posting has been received. o The Separate Payment for Each Reference setting specifies that a payment can only be used to pay invoices and credit memos that have the same payment reference. o Define how many bills of exchange are created for each account during the payment run for the bill of exchange payment method. o Control which open items for the bill of exchange payment method are to be considered during the payment run using the due date specifications 3. Payment Method per country o Payment method either for outgoing or incoming payment o Characteristics for classifying the payment method: What is the method of payment and what are its characteristics? o Postal bank/postal check account o Allowed for Personnel Payments o Requirements in the master records, for example, address required for check Posting details: o Document types for postings o Payment media info: Print programs; standard programs RFFOD* (such as RFFOD__S) or PAYMENT MEDIUM WORKBENCH o Key in the code line: For the bank; for example, 51 on bank transfers o Permitted currencies (if no entry is made - valid for all currencies) 4. Payment Method per company code

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o Minimum and maximum payment amounts - The breakdown amount has the following function: Payments that exceed this amount are analyzed to see whether a split into several payments is possible, with the specified amount as the maximum. o Whether payments abroad and foreign currencies are allowed Foreign business partner allowed (address) Customer/vendor bank abroad allowed (bank country) Foreign currency allowed o Grouping of items: o Single payment for marked items: Items that contain this payment method are paid individually; if an item does not contain a payment method with the result that the payment method is determined from the master record, it can be paid together with other items. o Payment per due day: Specifies that only items that are due on the same day are paid with a single payment. o Bank Selection Control - Settings for selecting the house bank No optimization Optimization by bank group: Every bank can be freely assigned to a bank group; the program looks for a solution where two banks are used that are assigned to the same bank group. Optimization by post code: Allows you to choose the house bank based on the 4. Bank Selection o The order in which the house banks are used is determined as follows: The payment method/currency determines which house bank is used first, second, third, and so on. o For each combination of house bank and payment method, you can specify the: Offsetting account for the sub ledger posting (bank subaccount) Clearing account: For payments by bill of exchange, the offsetting entry for the bill of exchange liability at the bank is made here. Available funds in each bank. Note that the amount field is not updated automatically after each payment run. o These sub-accounts are managed with open items so that users can manage the status of the payments. o The number of days up to the value date is the probable number of days until a debit memo or credit memo is entered in the bank account. The number of days is usually added to the posting date to produce the expected debit or credit memo date on the bank account for cash management and forecast purposes. o The value date is usually calculated from the posting date of the payment run plus the number of days up to the value date. o The incoming and outgoing payment functions have a bank charges field for entering all types of bank charges. For incoming payments, the system subtracts the bank charges from the clearing amount. For outgoing payments, it adds the charges to the clearing amount. The system also posts the charges to an expense account. To do this, it requires a posting key and an account assignment, both of which are already defined in the standard system

Lesson 3

Running Payment Program

Every payment program run is identified by two fields: Page 9 of 41



o Run Date it is recommended as the actual date when the program is executed. Its main purpose is to identify the program run o Identification - The identification field is used to differentiate between program runs that have the same run date. All documents that were entered up to the Docs entered up to date are included in the payment run. The posting date is the date when the general ledger is updated with the postings. This date is defaulted from the run date on the previous screen. If multiple company codes are listed, they have to be separated by commas. The company codes in a payment run must be in the same country. For each country, we defined payment methods that can be used within that particular country. From these payment methods, choose the ones to be used in the current payment run. If you use more than one payment method in the payment run, remember that the order in which you enter them is important. The method entered first has first priority; the next has second priority, and so on. The system makes the payment using the highest priority possible after the check. What happens in the proposal run? o The items to be paid are selected (based on the search criteria entered with the parameters). o The items for the payments are collected and payment methods and bank details assigned. o If the system cannot find a payment method or bank details, the items are added to the exception list. o The proposal and exception list are generated after the proposal run. How is the due date determined for payables? o A vendor item is paid if the following applies at the next payment run (taking the tolerance days into account): o 1. The discount has expired. o 2. A lower discount should be received. o 3. The net due date would have been exceeded. Once the proposal run is completed, the system generates two reports: the payment proposal list and the exception list. You can edit these reports online or print them. The proposal list shows the business partners and the amounts to be paid or received. Any exceptions are also listed here. Users can drill down several times to view and change the details of the individual payment items There are several ways to configure a payment block: o If a problem arises during the invoice verification process, the invoice is usually blocked for payment. o If there is a reason why a vendor should not be paid, you can create a payment block in the master record. o When an AP invoice is entered, an invoice may be blocked for payment. o You can define additional payment blocks in the system. Users can also specify whether the payment block can be removed when payments are processed. After you have edited the payment proposal, the system uses it as a basis for the actual payments. What happens during the payment run? o Payment documents are created or posted. o Open items are cleared. o Postings are made to general ledger and sub ledgers It is advisable to use bank subaccounts for posting incoming and outgoing payments, for example, accounts for outgoing checks, outgoing transfers, incoming checks and transfers received. Page 10 of 41



There are many advantages to using subaccounts. You can reconcile the bank account balance at any time with the corresponding G/L account. Subaccounts are generally managed on an open item basis and with line item display. The document type for payment documents is defined in the country-specific specifications for the payment method. For cross-company-code payments, you can enter a further document type that is used for the clearing postings. Both document types must be defined using internal number assignment. Documents from the payment run contain the date and identification number (for example, 19940301-ID) of the run in the document header text. For calculating the value date of check payments, you can enter a check cashing time in the master data. This has priority over the days to value date for checks The print run starts the standard print programs, which can both generate the payment media (such as checks) and provide the files (DME) for transfer to the banks. Individual steps: o The payment media, payment advice notes, and payment summary are sent to the print administration o The DME payment data is sent to DME administration o Intermediate documents are created for selected payments and forwarded to the EDI subsystem. A print program is assigned to each payment method for each country. A print program is assigned to each payment method for each country when it is configured. To run the print programs, the system needs at least one variant for each print program and payment method. If several variants are assigned to a print program, the system runs the program once for each variant. The first print program run by the payment program is the print program RFFOEDI1. This program chooses all the payments that were selected for EDI. Intermediate SAP documents are created for these payments and forwarded to the EDI subsystem. The EDI subsystem then transforms the intermediate documents into EDI data, which is sent to the bank. With Data Medium Exchange, a file is created that contains all the relevant payment information in accordance with the banking rules of the country in question. The DME file is stored in Data Medium Administration and can be downloaded to a data medium. You can also print out the DME accompanying note. The data medium and the DME accompanying note are then sent to the bank. The DME file can be either stored in the SAP TemSe (TEMporary SEquential file) within the SAP System or in the PC file system. In the SAP TemSe, the file cannot be accessed by unauthorized external users The print program: o Assigns check numbers to payment documents o Updates the payment documents and original invoice documents with the check information o Prints checks and accompanying documents

Lesson 4

Payment Medium Workbench

PMW is used to create payment media. The user is provided with a generic payment medium program for all payment medium formats whose variants are to be entered in Customizing. The user can create the structure of the note to the payee and choose different notes to the payee according to their origin (vendors, customers, personnel, travel expenses, treasury, online payments, and so on). Developers, consultants, and system administrators have simple tools for changing delivered formats Page 11 of 41



without modification or setting up new formats. Well-known development tools (Data Dictionary, Function Builder, and so on) and the new Data Medium Exchange Engine (DMEE) are integrated, enabling PMW to function like a workbench. Simple, modification-free options for adjusting delivered formats to meet customer or bank requirements (including individual selection parameters for the payment medium program). Simple tools for creating new formats (no programming experience required to use the DMEE). Customizing to structure the note to the payee. Standardized creation of advice notes with the new RFFOAVIS_FPAYM program. Improved performance, especially for large payment runs A payment method becomes a PMW payment method in only four steps: o 1. The payment medium format is assigned to the payment method after you have determined that you want to use PMW. You may have to enter a substitute format. o 2. The note to the payee is assigned to the payment method by origin. Here you can use the examples provided by SAP: SAMPLE 02 as the note to payee for FI-AP and FI-AR and SAMPLE 00 for all others (origin remains blank), for example. o 3. You enter the form for the accompanying sheet provided by SAP in the payment method for each company code (under Next Form). o 4. And finally, you must create and assign selection variants. Additional info on PMW o Set the PMW payment medium formats o Release information on PMW o Documentation on the generic payment medium program o Integration of check management in PMW o Creation of cross-payment run payment media o PMW connection to online payments Conversion Steps for a Payment Method: o 1. Switch to PMW (radio button) in the payment method definition/country. o 2. Enter an existing PMW format in the payment method definition/country. Hint: Note the documentation buttons for the PMW and the individual PMW format. o 3. Assign notes to payee (general and/or origin specific) to the payment method definition/country (for example, SAMPLE 02 for origin FI-AP and FI-AR) o 4. Assign a PMW form for accompanying sheets o 5. Remove the form for document-based payment medium (if you have not already done so) o 6. Create and assign selection variants for each payment group. When the payment media are created for a payment with a PMW payment method, the program SAPFPAYM_SCHEDULE is launched. This first carries out a pre-service. The pre-service processes the data supplied by the payment run again specifically for the PMW: o The payments are sorted according to PMW format and other format-specific fields. o Payment groups are created based on the level of granularity (one payment medium file is usually created later for each group). o The note to payee is formed The granularity is specified in the definition of the payment medium format and determines how the payment media are to be output separately in payment groups. A payment group usually corresponds to one payment file. Every PMW format (with or without a supplement) has up to three types of text fields for reference information (text box on the left in the PMW Format graphic above). o Type 1: Invoice information (classic note to payee) o Type 2: Internal reference (in case the payment media is returned) Page 12 of 41



o Type 3: External reference (for the business partner)

Lesson 5

Debit Balance Check

In some cases, the payment run can result in payments being made even though the account has a debit balance. The debit balance check can be carried out after a payment proposal has been created. The check offsets the entire due debit items without an incoming payment method against the proposed payments. If the resulting debit balance or credit balance is less than the minimum payment amount, the payments are added to the exception list and the account is placed on a list of blocked accounts. The relevant accounts remain blocked even if the payment proposal is then deleted.

Lesson 6 - Automating the Payment Process Program RFF110S is used to schedule the payment program SAPF110S in the background. The selection screen for this program essentially features the same parameters as transaction F110. The program RFF110S, in turn, can automatically run four additional programs consecutively. o To prevent outgoing payments despite a due debit balance, the program RFF110S should first be scheduled as a proposal run. Following this, the program RFF110SSP should be called automatically to perform the debit balance check. o After the debit balance check, the program RFF110S is called again automatically. This time, however, as an update run with possible generation of the payment media The programs can be scheduled to run periodically using job management or the Schedule Manager.

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Unit 3 Lesson 1


Automatic Dunning Payments Dunning Run

During the dunning run, the system chooses the accounts and checks them for items that are overdue. Finally, a check is made whether reminders have to be sent and dunning levels are allocated. All dunning data is saved in one dunning proposal. The dunning proposal can be edited, deleted, and re-created as often as required until the accounting clerk is satisfied with the result. Four steps that have to be taken by the dunning program to perform the automatic dunning procedure. o Maintain parameters o Proposal run o Edit the dunning proposal o Print the dunning notices

Lesson 2

Dunning Program Configuration

The dunning procedure controls how dunning is carried out. Every account that is to be included in the automatic dunning process needs to have a dunning procedure. One-time-accounts also have a dunning procedure that is valid for all one-time customers. The dunning procedure can process standard and/or special G/L transactions Dunning Program settings are divided into following o Dunning procedure o Dunning levels o Expenses/charges o Minimum amounts o Dunning text o Environment Dunning Procedure - The following settings are defined for the dunning procedure: o The key to be used (for example, 0001) o A description of the dunning procedure o Dunning Interval in Days = Dunning Frequency: The system checks whether the run date is at least this number of days after the date of the last dunning run. If this is not the case, dunning is not repeated. o The sum of items due from the dunning level: = Dunning level from which all the due items are totaled. o Minimum days in arrears (account): At least one item in the account must have reached at least this number of days; otherwise, the item is not dunned. An item whose number of days in arrears is less than or equal to the number of grace days is not considered due during this dunning run.

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o Line item grace period: Number of days taken into account when the due date is determined for the dunning run. A line item whose number of days in arrears is less than or equal to the number of grace days is not considered due during the dunning run. o Interest indicator: The interest indicator must be entered to calculate dunning interest. o Dunning letter even if account balance is positive If this flag is not set, the account balance is always checked: Dunning notices are only created if the account balance is in debit (that is, the business partner has an overall payable). o If you choose the Always Dun option, dunning notices are printed even if the dunning proposals have not changed since the last dunning run. A dunning proposal is considered changed if it fulfills at least one of the following criteria: At least one item has reached a different dunning level A new item was added to the dunning notice The dunning level of the account was changed Expenses/Charges o You specify dunning charges for each dunning level. o Dunning charges can be defined for each currency and depend on the dunning level. o You can use the word processing features to print these charges on dunning forms. o Either fixed amount or a percentage of the dunned amount. o Minimum Amount o If the minimum amount for overdue items is not reached in a dunning level, the items in this dunning level are assigned to the next lowest level and the system checks whether a dunning notice can then be created in this dunning level. Dunning Text o The dunning program can generate payment advice notes, dunning notices, and payment forms. Environment Depending on the company code and account type o Company code data: Specifies whether dunning notices for a company code are to be created separately by dunning area rather than by account; in this case the dunning data in the business an organizational entity, that is, a substructure of a company code that is responsible for dunning. o for sorting dunning notices and items by certain criteria o Sender details (footer and header) – Details about your company such as the company logo, bank details in footer, and so on o Dunning areas: Define for each company code Standard texts have to be assigned to a company code and (optionally) a dunning area. A standard text contains the text for the letter header which can include a company logo and a telephone number, for example. o Dunning key: specifies that the line item can only be dunned with restrictions or must be displayed separately on the dunning notice o Dunning block reasons: Dunning blocks prevent accounts and items from being dunned o Interest: Interest rate for maintaining the interest on debit balances (dependent on currency and time) o Dunning grouping Grouping key (document fields with the same contents, for example, financial assets management with identical rental agreements) Page 15 of 41


Lesson 3


Parameters for Dunning Run

Every dunning program run is identified by the following two fields: o Run date - The run date does not have to be the actual date when the program is executed, but this is recommended. Its main purpose is to identify the program run. o Identification - The Identification is used to differentiate between programs that have the same run date. You use the parameters to specify which company codes, documents, and accounts are to be searched for overdue items. The additional log records the individual processing steps in the dunning run.

Lesson 4 Dunning Run The dunning run creates a dunning proposal that can be edited, deleted, and re-created as often as necessary. If necessary, you can automatically print out the dunning notices directly after the dunning run. In this case, you decide not to edit the dunning proposals. The dunning run can be divided into the three steps above for more clarity. o Step 1: Account Selection. In this step the program checks which accounts shall be considered in the dunning run according to the parameters and configuration. The following criteria must be fulfilled: A dunning procedure must be entered in the master data. The date of the last dunning run entered in the account must be earlier than the dunning interval date of the dunning procedure. o Step 2: Dun Line Items. In this step, the system checks which line items are overdue in the selected accounts and which dunning level should be applied. o Step 3: Dun Accounts. In this step, the system checks whether payments have to be dunned for an account and, if so, which dunning level should be used. Usually the payment terms of a credit memo do not apply. Instead, the following rules are valid: o If a credit memo is invoice-related, it has the same due date as the invoice. o All other credit memos are due at the base line date. The due net debit items on the account are cleared with the due net credit items. The credit items are assigned to the debit items with the highest dunning level and are cleared with these items. If you have chosen clearing between customer and vendor, the due net credit items in the vendor account are also cleared with the items with the highest dunning level. The same dunning procedure must be defined for both the customer and vendor. You can create dunning procedures with and without grace days. What effect do grace days have? If no grace days are defined, the system starts the dunning procedure as soon as the due date for net payment is reached. If two grace days are defined, for example, dunning does not take place until two days after the due date for net payment. Due date: Day by which the liabilities should have been paid. Dunning date: Day when the overdue items are dunned. Every dunned item must be overdue, but not all overdue items are dunned. If items are overdue but there is a dunning block in the item, the system adds these items to the blocked items list. If payments have to be dunned for an account, but the account contains a dunning block, the system adds the account to the list of blocked accounts. Page 16 of 41



Each dunning procedure contains up to nine dunning levels. The dunning notice wording is usually influenced by the dunning level. The higher the dunning level, the stronger the formulation in the dunning text. Each item to be dunned is assigned a dunning level according to its days in arrears. By assigning dunning keys to certain items, you can prevent these items from exceeding a certain dunning level. The account can only be dunned if at least one item has reached the minimum days in arrears per account. The account gets the highest dunning level of all the items to be dunned. If all items are dunned with one dunning notice, the dunning text is worded according to highest dunning level. Accounts in a legal dunning procedure are subject to a different rule. If the start date of the legal dunning procedure is entered in the account master data, the account is always dunned if one of the following conditions is fulfilled: o Postings have been made since the last dunning run. o The Always Dun in Legal Dunning Procedure indicator is selected.

Lesson 5

Editing Dunning Proposal

After the dunning proposal has been created, it can be edited by a clerk. To support the clerks work, the following lists can be printed: o Dunning statistics o Dunning list o Blocked accounts o Blocked line items o Dunning history The clerk can: Block an account in the current dunning proposal or remove the dunning block. Block a line item in the current dunning proposal or remove the dunning block. Lower the dunning level of an item in the current dunning proposal. Change the dunning and correspondence data of an account in the master record. o This change does not apply to the current dunning run. Change a document. o This change does not apply to the current dunning run.

Lesson 6

Printing Dunning Notices

The print program for the dunning procedure: o Groups items to be dunned with a dunning notice according to various rules o Generates a dunning notice for each group o Enters the dunning date and level in the dunned items and accounts Items that are to be dunned are grouped together in dunning notices as long as they have the same: o Company code o Dunning area (if dunning areas are used) o Account Page 17 of 41



You can also group items by the following criteria. Examples: o Dunning by dunning level: In the company code specific settings for the dunning program, you can choose whether a separate dunning notice is to be printed for each dunning level. In this case, the text for the dunning notice is selected according to the dunning levels of the grouped items. o Grouping key: You can enter a grouping key in the customer/vendor account to group items in dunning notices that have the same values in the fields assigned to the grouping key. o Decentralized processing: If a customer has a head office with several branch offices, items are posted to the central account. As a result, the head office usually receives one dunning notice with all the due items from its branch offices. If decentralized processing is selected in the branch accounts, dunning are processed locally, that is, the notices are sent to the branch offices. You can use cross-company code dunning to combine overdue items from different company codes in one dunning run. The overdue items from one customer that exist in different company codes are dunned with one dunning notice. The items are grouped according to predefined rules, for example, by dunning levels, dunning areas, or dunning grouping, and assigned to one or more dunning notices. This means that you do not have to send the customer a separate dunning notice for each company code.

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Unit 4 Lesson 1


Correspondence Correspondence Overview

Correspondence is required in many areas of external accounting. Many companies strive to automate their correspondence activities. Periodic correspondence is triggered by specifications made in the master record, such as invoices and account statements. The interval (weekly, monthly, and so on) is specified in the customer/vendor master record The correspondence creation process comprises the following steps: o Step 1: Request the required correspondence. Here, the system initially only notes internally which correspondence types are to be created. o Step 2: The requested correspondence types are printed. Typically, correspondence is printed automatically with a particular frequency, for example, dunning letters, account statements, and so on. In certain cases, it is possible to print certain correspondence types individually and on demand. The print request is sent to the spool system.

Lesson 2

Correspondence Types

Basic types of correspondence: o 1. Collective request with a selection program (for example, periodic bank statement) o 2. Manual individual request (for example, open items list, bank account statement, individual correspondence) o 3. Automatic individual request (for example, payment notice) You can generate correspondence directly from many screens in the system (manual individual request). o Document creation o Display/change line items o Balance display o Line item processing o Payment A correspondence type represents a type of letter in the system. You have to create a correspondence type for every type of letter you need.

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Data from several different company codes can be combined in one letter. Select the Cross Company checkbox in the correspondence type and assign the company codes to correspondence company codes in the IMG.

A correspondence type can have several different form letters. The individual forms are distinguished by their form ID. This ID is assigned to the selection variant to make sure that the right letter is printed. If you are using different types of correspondence depending on the reason code, select the According to Reason Code checkbox.

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Unit 5


Country Specifics

Lesson 1 Check Management The check and payment document are created in two separate steps. When the check is created, the check number, bank information, and the check recipient are printed on both the payment document and the open invoice. If errors are made, users must decide whether to reprint or void the check, or whether to void and reverse the check and the payment document. There are three ways to pay an invoice in the SAP system: o With the automatic payment program: This program creates several payment documents and checks automatically. This program is used to pay several vendors at once. o With Post and print forms: This function creates individual payment documents and checks. The user manually selects the invoices for payment. You use this function to pay a specific vendor or invoice. o Post: Creates individual payment documents after the user has manually selected the invoices for payment. As in the previous example, you use this function to pay a vendor or a specific invoice using pre-printed checks that are filled out manually or with a typewriter. Checks can be voided (you have to give reason) before the print run in the following cases: o Accidentally damaged o Stolen o Destroyed Checks can be voided after the print run in the following cases: o Not required because a cash payment is made instead o Torn during printing o Used for a test print In each case, you have to decide whether the payment document needs to be reversed. The system allows you to: o Reverse the check o Reverse the check then reverse the payment document separately o Reverse the check and the payment document simultaneously When you void a check, the payment document, original invoice, and check register are updated. When you reverse a document, a new reversal document is created. The Check Register is a dynamic report that provides the following information: o All checks o Outstanding checks o Checks paid o Voided checks After notification that the check has been cashed is received, the RFEBCK00 program transfers the check amount from the check clearing account to the cash account. At the same time, the cashing date (date the check was cashed) is entered in the payment document, original invoice, and check register

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Unit 6


Overview of Closing Activities

Lesson 1 Month-End and Year-End Closing Processes

Pre-closing activities that begin in the old month include: o Technical - Open new accounting period (FI), o FI - Enter accruals/deferrals, process recurring entries and bad debt expense in AR, post depreciation and interest expenses in Asset Accounting o MM - Maintain GR/IR clearing account, post material revaluations o HR - Post payroll expenses o SD - Post goods issues for deliveries to customers o Technical - Close old month in (MM), close sub-ledgers (FI), preliminary close of G/L (FI) Managerial closing activities include CO allocations and repostings, locking the old accounting period in CO, and re-opening the G/L for adjustment postings. Closing activities for external purposes include: o FI Foreign currency valuations o Technical Final closing of the old period o FI/CO Creating external and internal reports

Pre-closing activities that begin in the old month (before year end closing) include: o Technical - Open the first accounting period of the new fiscal year (FI), Page 22 of 41



o MM - Perform physical inventory count (may be performed on up to a monthly basis) o PP/CO - Update product cost estimates (may be performed more frequently) o MM - Lowest value determination and LIFO/FIFO valuation o AA - Asset valuations and investment support o FI - Balance confirmations for customers/vendors o Technical - Fiscal year change (AA) and balance carry forward (FI) Closing activities for external purposes include: o FI - GR/IR clearing account analysis, receivables and payables reclassification, reconciliation of prior year to new year, and other adjustment postings o Technical - Final closing of the old period (AR/AP and G/L) o FI/CO - Creating external and internal reports

Unit 7

Financial Statements

Lesson 1 Financial Statement Version The SAP ERP system provides a standard report (RFBILA00) for creating financial statements. Financial statement versions are also used in the structured balance list, drilldown reporting, planning, and transferring data to consolidation. The financial statement version enables you to configure the report format such as whether to create the report at the business area level, segment level, profit center level, company code level, and so on (the document split must be activated to create financial statements for additional entities). You determine the following: o Which items are to be included and the sequence and hierarchy of these items o The text describing the items o The charts of accounts and the individual accounts relevant to the report o The totals to be displayed You define a financial statement version in two steps: o Enter it in the directory of financial statement versions o Define hierarchy levels and assign accounts o Assets o Liabilities o Profit o Loss o Profit and loss results o Accounts not assigned o Notes to Financial Statement o Non Assigned Accounts The net profit or net loss is only determined from accounts that are assigned to the assets and liabilities items. Accounts belonging to the items notes to financial statement (see above) or not assigned are not taken into account A financial statement version consists of a maximum of 20 hierarchy levels. o a) Assign items to each level. The system calculates a total/subtotal for each item, which is then displayed when the program is run. o b) Assign texts to each item. Page 23 of 41



o c) Assign the accounts whose balance and account name are to be listed to the lowest levels. You can write additional texts for each item in a financial statement. You can write up to four lines of text at the beginning and/or the end of an item. You use account group assignment to determine in which cases the balance of a specific account group is to appear in a specific financial statement item. (e.g. Bank with positive or negative balance)

Lesson 2 Drilldown Reporting Drilldown reporting is a tool that enables you to analyze G/L account transaction figures and financial statements. You can also carry out variance analyses such as plan/actual comparisons, fiscal year comparisons, and so on. Drilldown reporting also provides functions for processing lists, such as sorting, conditions (threshold values), ranking lists, and so on. You can also access SAP Graphics, SAPmail, and the Excel List viewer from your report. Characteristics and key figures form the basis of the drilldown report presentation. Characteristics define how your data can be classified or provide a time reference. Key figures include stored values or quantities and calculations based on these values and quantities. In G/L drilldown reports: o Characteristics can include company, company code, business area, segment, profit center, chart of accounts, financial statement item, currency, fiscal year, period, and so on o Key figures can include total credit balance, total debit balance, balance sheet value, accumulated balance, balance carry forward, and so on. Each report consists of a number of lists that are divided into two categories according to their content: drilldown lists and detail lists.

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Unit 8


Receivables & Payables

Lesson 1 Balance Confirmation At the beginning of the fiscal year, the balance carry forward program is run, carrying forward the balances of the customer accounts to the next fiscal year. The posting periods of the old fiscal year are blocked and the special periods for closing postings are opened. The balances are then confirmed, the foreign currency documents valuated, the values adjusted, and the receivables regrouped. Once complete, the special periods can be closed. Balance confirmations are generated, foreign currencies valuated, and receivables regrouped in the same way as in accounts payable accounting. The program for creating balance confirmations automatically creates balance confirmations (including reply slips) for a freely definable number of customers and vendors, as well as a reconciliation list and a results table Reports SAPF130D and SAPF130K create correspondence to and from your customers and vendors to enable you to check the balance of receivables and payables. You can choose from the following procedures: o Balance Confirmation o Balance notification o Balance request For each company code, the reports output a checklist and an error list. You use these to check the receipt of balance confirmations. In the error list, the report logs the errors that occurred during the evaluation You must specify at least one address to which balance confirmations should be sent. Enter an ID or leave the field blank.

Lesson 2 Foreign Currency Valuation You carry out the foreign currency valuation before you create the financial statements. The valuation includes the following accounts and items: o Foreign currency balance sheet accounts, that is, G/L accounts that you manage in a foreign currency (the balances of the G/L accounts in foreign currency are valuated) o Open items (customers, vendors, G/L accounts) posted in foreign currency (the line items are valuated) A valuation cannot be made by a posting to the payables account, since reconciliation accounts cannot be directly posted to. For this reason, the amount is posted to an adjustment account, which appears in the same line of the balance sheet as the reconciliation account. A valuation method determines how the individual line items are valuated. This has to be set up in conjunction with the country-specific valuation regulations. It defines, for example, whether o the lowest value principle, o the strict lowest value principle, or o a general principle (also with revenue from the valuation) is to be used for valuation.

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Although the foreign currency valuation program FAGL_FC_VALUATION requires a valuation area, valuation area Blank is sufficient in account maintenance that is, you define the accounts without a valuation area. A valuation area is assigned exactly one valuation method but the same valuation method can be assigned to multiple valuation areas. In SAP you can tell which valuation approach is used in which ledger (=> values from different valuation areas): In addition to the leading ledger, you need (of course) at least one non-leading ledger You define valuation areas (originating in FI). (=> See slide 1.) You define accounting rules (AR). (=> See slide 2.) You assign an accounting rule to the valuation areas (=> See slide 2.) In turn, you combine the accounting rules with the corresponding ledgers. (=> See slide 3.) You also define which valuation method (e.g. lowest value principle or basic valuation) will be used for each valuation area in Customizing. (=> See 1. in this slide and the previous figure) The posting document generated by the foreign currency program is reversed automatically with the same program, on the first day of the next month. New with SAP ERP: The reversal is independent of the valuation area for which the foreign currency valuation run was started. Foreign currency accounts are valuated by balance. Exchange rate differences in foreign currency balance sheet accounts are posted to various gains and losses accounts based on the exchange rate difference key that you enter in the G/L account master record.

Lesson 3 Value Adjustments The following options are available for creating value adjustments for receivables: o 1. You enter individual value adjustments (IVA) as a special G/L transaction E. o 2. You use the program SAPF107V Additional valuations to carry out a flat-rate individual value adjustment. o 3. Once you have determined the amount of the value adjustment, you adjust the flat-rate value by making a manual G/L account posting. The posting record is as follows: Expense from flat-rate value adjustment to value adjustment. Doubtful receivables are written off as an individual value adjustment (IVA) during year-end closing. The special general ledger method is suitable for this procedure since the transaction is entered in the customer account and is also posted to a special G/L account, Individual Value Adjustments for Receivables. You assign the valuation adjustment key to the master record of any customer account that you want to include in the flat-rate individual value adjustment posting. Page 26 of 41



Lesson 4 Regrouping Payables and receivables have to be listed separately in the balance sheet. Since it is possible for some vendors to have a debit balance, these balances need to be changed to customer-like vendor accounts prior to creating the financial statements. In some countries it is also a requirement that payables are grouped in the balance sheet according to their remaining life. Both regroupings are carried out using a special program. At the same time, these regroupings are removed for the first day of the next period, since regrouping are not necessary for daily processing. Scenario: Your company code has receivables from and payables to a business partner that: o Is a customer as well as a vendor o Is an affiliated company (for example, another company code in your group) Non-SAP system: o In the general control data in the customer and vendor master data, define the same company o We recommend that you define an alternative reconciliation account in the master data (receivables from, payables to affiliated companies).

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Unit 9


Accruals and Deferrals

Lesson 1 Accrual / Deferral Postings

To ensure that expenses are posted to the correct period, you can enter accrual/deferral documents, and then reverse them in a later step (collective processing). The reversal date (indicator) in that document is then regarded as the posting date of the reversal document. When you enter the accrual/deferral document, you have to enter a reversal reason. The reason is noted in the document that is reversed. The reversal reason also defines whether: o The reversal document can have a different posting date o The reversal document can be comprised of negative postings Expenses and revenue posted in one period can often originate in other periods. For this reason, expenses and revenue have to be accrued/deferred, in other words, they are distributed to the periods from which they resulted. A distinction is made between o Accruals Triggering situation: Economically, expenses/revenue belong in the current period and are only posted to a subsequent period once an invoice has been received or issued. o Deferrals Triggering situation: Expenses/revenue were posted to the current period on receipt/issue of an invoice, but economically they belong, at least partially, in a future period.

Lesson 2 Accrual Engine The Accrual Engine is a generic tool for calculating and creating accrual postings. As input it receives basic data that describes the subject matter to be accrued, for example, data for a rental agreement. The Accrual Engine uses this data to calculate the accruals and creates the related periodic postings. The Accrual Engine is used amongst other things for: o Manual Accruals in Financial Accounting o Provisions for Awards o Lease Accounting o Intellectual Property Management The Accrual Engine stores two types of data: Page 28 of 41



o Basic Data - The basic data consists of a description of the subject to be accrued (accrual object) and all other information required for carrying out the accruals. Basic data is timedependent. o Accrual Engine Documents and Totals Records All accruals postings create documents in the Accrual Engine (Accrual Engine documents) and update fiscal year-specific totals records. The Accrual Engine documents automatically create corresponding documents in FI. Various levels of summarization are possible. If errors occur during the FI update, you can trigger this again manually. Usually, two main processes are triggered from the application component: o Create/change basic data Depending on the Customizing settings; an opening posting may be made immediately. o Periodic start of the accrual run or reversal of an accrual run An Info system gives you direct access to totals records and documents in the

To activate an application component of the Accrual Engine you have to carry out the following Customizing activities: o The application component must be assigned to the company codes that are to use it. o The required accounting principles must be defined if this has not already been done. o The application component must be assigned to the required combination of accounting principle and company code. o The current fiscal year must be open for the application component. The Accrual Engine requires only a small number of closing activities of a purely technical nature. o Reconciliation: Accrual Engine/General Ledger - Here, Accrual Engine documents and General Ledger documents are reconciled with one another to check whether the transfer to the General Ledger was complete and without errors. o Balance carry forward - At the end of the fiscal year you have to carry forward the balances of the accruals objects into the next fiscal year. This has nothing to do with the balance carry forward in the General Ledger. In the application component Manual Accruals, you create the basic data manually (subject matter to be accrued based on different contracts) via a simple user interface. The subject to be accrued is defined as an accrual object. You make this definition manually in the application component Manual Accruals Accrual objects in this application component are identified uniquely for each company code using an accrual object number from a defined number range. The accrual objects are grouped in accrual object categories for manual accruals. These summarize the subject matter of similar accrual objects. For example, insurance contracts (accrual objects) can be assigned to the accrual object category Insurances Page 29 of 41



Each accrual object can have several accrual items. An accruals item describes how a related accruals type (usually costs or revenues) is accrued using a specific accounting principle The accrual is calculated for each accrual item, for each combination of accrual type and accounting principle specified. In addition to the amount to be accrued and possibly also a quantity to be accrued, the accrual item contains an accrual method. You can also define derived accruals types. These accruals amounts are calculated from the accrual amounts of other accrual types and not directly. However, derived accrual types are not particularly relevant for manual accruals and are more important for other application components The posting control is defined for each o Company code o Accounting principle o Accrual type You define o How frequently accruals are carried out (for each posting period, daily, monthly, quarterly, every six months, annually) o The level of summarization for postings before the update to FI You can make the following settings No Summarization: A separate line item is created for each accruals item. Summarization at accrual object level: A line item is created for each accrual object. Maximum Summarization: The postings are summarized to the level of different additional account assignments. The purpose of account determination is to o Determine the document type o Determine the debit account (here: target account) o Determine the credit account (here: start account) For each accrual type, you define in Customizing which postings are to be made automatically and, therefore, for which postings account determination is required. o None (the accruals are calculated in the Accrual Engine, but not posted) o Only the opening posting o Only periodic postings (useful, for example, for accruals) o All (opening posting, periodic accruals, and - if the accrual object is terminated prematurely - a closing posting) For parallel accounting, the Accrual Engine supports o Parallel accounts - For parallel accounts, you must configure the account determination of the Accrual Engine accordingly, that is, the accounts must be found depending on the accounting principle. o Parallel ledgers - For the ledger approach, you have to assign the accounting principles in Customizing Accounts are determined using derivation rules. These rules consist of o Conditions under which the derivation rule is executed (optional) o Determination of fields used in the derivation rule Here you define Source fields (derivation rule input) all fields filled from the Accrual Engine. Target fields (derivation rule output) all fields that must be filled for successful account determination, or user-defined parameters that you can use for sequential derivation rules. o The rule entries themselves that derive the input for the target fields from the content of the source fields. Page 30 of 41



In the case of manual accruals (application component ACAC): You define parameters as required in the Data Dictionary structure ACAC_PARAMETERS. The derivation rules are summarized in a set of rules. Depending on how the derivation rules are defined, they are processed either in parallel or sequentially. o Parallel derivation rules are processed sequentially and determine independent results. o Sequential derivation rules must be created in the correct order, because their results are cumulative. The order in which parallel derivation rules are created and processed is irrelevant, since their results are independent of one another. The order in which sequential derivation rules are created and processed is important.

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Unit 10


Technical, Organizational and Documentary Steps

Lesson 1 Technical Steps The system calculates the balance carried forward to the new fiscal year for each balance sheet account. The balance of the P&L accounts is posted to the P&L carry-forward account. In another column in the table you can assign an authorization group to the periods open in the . The authorization group has no effect on the open periods in the period 2 interval. You can, therefore, define that postings in interval 1 can only be made by a specific user group (accounting), but all users can post in interval 2. As part of general ledger month-end closing, the following consistency checks are performed: o Debit and credit transaction figures for customer accounts, vendor accounts, and G/L accounts (table FAGLFLEXT) with the debit and credit totals of the posted documents (table BSEG). o 2. Debit and credit transaction figures for customer accounts, vendor accounts, and G/L accounts (table FAGLFLEXT) with the debit and credit totals of the application index (secondary index tables BSIS/BSAD, BSIK/BSAK,BSIS/BSAK). All the results of the reconciliation are added to historical management. This enables statements to be made about the execution and accuracy of the reconciliation activities on a time basis.

Lesson 2 Documentary Steps The Balance Audit Trail displays the balance at the beginning of a period and the changes to the account to the period end. The main reasons for balance audit trails o To display posting information for a fiscal year and document a status in the financial accounting o To provide a statement for an external audit

Lesson 3 Document Splitting Assumptions for document splitting: The operative process (of document entry) must not be disturbed (changed) by the online check The entities defined as splitting characteristics are inherited in non-account-assigned posting lines

Lesson 4 CO-FI Reconciliation

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The aim of the CO-FI Integration (functionality of the New General Ledger) is to ensure correction postings are made immediately in FI in case cross-organizational unit postings (e.g. profit centers) are executed in CO.

Only the opposite direction, from CO to FI, was not previously possible in real-time. This involves, for example, changes to characteristics in the following processes/transactions such as: Periodic allocations (assessment, distribution, transfer posting) Manual transfer postings to CO [=> transaction KB11(N)] Activity allocations [transaction KB21(N)] Settlement from orders or projects [transactions KO88 and CJ88] Transaction KALC is no longer available (by default) after the new G/L is activated to determine which characteristic changes will generate real-time FI line items; you can use the checkboxes, define Boolean rules, or implement a BAdI with your own program logic. It does not make any sense to select characteristics that you have not assigned to at least one ledger in the scenarios. To transfer secondary cost elements from CO to FI, you have to define an account assignment.

Lesson 5 Ledger Group Postings Sometimes, for the sake of deviating accounting values, it may be necessary to post directly to a ledger group. Different accounting rules can (still) be modeled using the account-based solution in the new G/L. In addition to accounts, however, the new G/L also lets you use different ledgers to save the different valuation approaches this is called the ledger solution (in the new G/L). We recommend that existing customers who upgrade to SAP ERP do not change the leading view. A change of the leading view should always be dealt with in a separate project, as before. The leading ledger is the (only) ledger that is integrated with CO. The use of non-leading ledgers also enables you to use different fiscal year variants within one company code A ledger can be assigned one scenario, several scenarios, or even all six at once. The decision as to how many scenarios to assign depends solely on which "facts"/"business aspects" you want to model in the corresponding (non-leading) ledger.

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The ledger group is option for simplifying and/or accelerating the work in certain cases. No customer should be forced to create their own ledger groups.

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Unit 11


Closing Cockpit

Lesson 1 Closing Cockpit Possible applications of the Closing Cockpit: This support function enables you to create a structured interface for executing transactions and programs that form part of complex processes, such as closing processes. The structural layout supports processes within an organizational structure, such as a company code, as well as scenarios affecting multiple organizational structures. The Closing Cockpit can be used as an application tool in the following cases in particular: o When activities recur periodically o When more than one person responsible may be involved o When the activities are performed within a process that has a fixed chronological sequence or is determined by dependencies o The activities need to be supported by a shared, uniform interface for all involved o The status of all periodic activities needs to be documented and made transparent and available for all involved o The closing tasks are documented for later checks To support the closing process, the Closing Cockpit offers the following options: o Hierarchies to display the organizational objects involved in the closing process o A task list template based on the organizational structure o A detail view of the characteristic values of the individual hierarchy levels used in the task list template o Task lists that are derived from the task list template o A list display in which all tasks to be managed or executed from the respective task list are made available for processing or for monitoring task progress o A monitor that provides an overview of the sequence of tasks, their status and dependencies, and critical paths in graphical form. o Detailed information for evaluating the technical settings of tasks as well as for analyzing background programs (spool, job log information) o Dependencies for displaying the conditions that are prerequisite to processing the individual tasks The Closing Cockpit can be used once a task list template has been created and assigned to an organizational structure (such as controlling area/company code, company code, arc), tasks (subfolders, transactions, programs, flow definitions, notes) have been assigned to the task list template, and a task list has been derived and released for the application. The entry you select in the super ordinate Org. Level field determines the later use of the organizational object in the organizational hierarchy. If you do not define a super ordinate organizational level, the organizational object is only available in the hierarchy as an initial node. You can summarize the data in the task list template across organizational levels by chart of accounts, fiscal year variant, currency, or valuation area. The system proposes the same substructure (subfolder) for the different attributes on one organizational level. The system generates a proposal for a task list template in accordance with the selected hierarchies and using all organizational objects available in the system A template (ten-character technical key) is used to structure the individual steps of a process. In this interface, all users involved in the closing process can access the relevant activities in tasks that are Page 35 of 41



executed online or in background processing. The scope of a template should not be determined by application-related aspects. Instead, its scope should be oriented towards the overall process and the organizational units involved. Task folders are used to arrange organizational levels into substructures in the task list template. Default values for task folders can be stored as subfolders in the generic maintenance of the organizational levels. Users in the Closing Cockpit (CLOCO) application can access the required transaction or background processing for programs and flow definitions directly from the central interface. Four types of task are available: o 1. Programs: with program variant (background processing) Standard programs are generally available for processing activities in the background. If these programs are included in the task list template with corresponding parameters (that is, with a variant), you can later start background processing directly from the Closing Cockpit. Without program variant the report can be started and processed online in the task list of the Closing Cockpit application. o 2. Online transactions: You can start these transactions manually from the task list and go directly from the Closing Cockpit to the relevant application transaction. o 3. Note: Used only as a reminder or milestone. o 4. Flow definition: Flow definitions are used for multiple programs with variants that are to be processed automatically. Such programs are combined to form a logical flow chain with unique predecessor and successor relationships. o When a flow definition is executed (or scheduled to be executed), all of the related programs are processed in the specified sequence, and then the results are made available for analysis under Detailed Information. Task dates: In the graphic display of the Monitor, you can portray the planned runtime on the basis of the scheduling dates. This planned runtime is displayed in the MONITOR accordingly. In this way, you can schedule dates for closing operations. If completion of the task has an essential deadline for closing operations, this activity can be identified as a critical path and then displayed accordingly in the application (CLOCO) To perform programs included in a task list, you need to specify variant values. With the separation of the task list template from the task list, you can define the structured process flow as a generic template and then make a task list available for processing with specific parameter values. Programs and transactions that have been included in the task list template using chronological process steps as part of an organizational structure frequently involve business-related or systemrelated dependencies that need to be portrayed for the process flow to be processed smoothly. The monitor shows you the processing status of the tasks: o Blue: Scheduled o Gray: Initial o Green: Ended without errors o Red: Canceled/Ended with errors o White: Active o Yellow: Ended with warnings o A vertical blue line shows the current time. In addition, the detailed view for a task shows you: o Name and description o Report name and variant name o Processor and person responsible o Start time and end time Page 36 of 41



In the list display, you can display all the details for the tasks as well as the processing status. You can navigate directly to the detail list for a task at any time, where you can immediately check or process: o The spool request o The job log o The batch input session If you change the status of a task, the system updates change documents for the task to make it easier for you to track and document the history of the processes. In the flow definition, you can group tasks that are to be executed in the background in a particular order. You use the workflow to control these flow definitions. You can structure sub flows and include them in a flow definition. To specify your tasks further, you can also store notes and documents for your tasks. In the monitor, you can also display the tasks according to processor or person responsible. In addition, you can send mails to the people assigned to the task list.

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Unit 12


Additional Material

(Not part of TFIN50 Not examinable)

Lesson 1 Financial Statement Adjustments in Classic General Ledger Accounting The financial statement adjustment breaks the receivables, payables, and taxes down into the account items. If an error occurs, you can carry out a reversal run. The reversal posting is made if the adjustment item posted is cleared at the key date of the new run. The profit and loss statement adjustment breaks down cash discount and exchange rate differences which accrue when customer and vendor invoices are paid according to the following additional o o o o o o

Lesson 2

Business area Partner business area (Consolidation) Profit center Partner profit center Some of the CO objects All of the fields you defined in the coding block.

Controlling

In some cases, the general ledger should be updated for the postings internal to CO. This is a requirement when the CO cost flows cross FI organizational units (company codes, business areas, and functional areas). The reconciliation ledger stores all cost flows within controlling in a summarized form. In the SAP System, the reconciliation ledger represents cost element accounting. The reconciliation ledger compares the CO view of data to the FI view and enables you to automatically reconcile controlling with financial accounting.

Lesson 3

Cost of Sales Accounting

The profit and loss statement can be created using two types of accounting: o Period accounting - In period accounting, the total result for a period and the total costs of this period are summarized. o Cost of sales accounting - In cost of sales accounting, the sales revenue for a period and the sales costs of the period are summarized. The cost of goods manufactured is determined when the goods are issued. In period accounting, the

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To assign the remaining costs to their origin, the SAP system requires an additional characteristic: the functional area. Typical functional areas are sales, production, marketing, administration, research & development. Cost of sales accounting requires the use of organizational units called functional areas to divide costs posted to the same expense account to separate report items. As you can see from the slide, you can present the same type of expense in different sections of your profitability analysis. By grouping expenses by function (production, sales, administration), cost of sales accounting also defines the business transaction that each individual expense in the company results from. In cost of sales accounting, the coding block (that is, the list of account assignment objects) is extended to include a field for the functional area. This field is filled by o Manual entries o Automatically entering the functional area using substitution rules o Automatically copying a functional area entered from the master record of the P&L account o Automatically copying a functional area entered from the master record of the CO object The sequence above also indicates the priority of the derivation options. Cost of sales accounting in the classic general ledger accounting:

If additional transaction figures are to be maintained using existing or new account assignment fields, the Special Ledger component must be used to o Extend the coding block o Maintain the additional transaction figures in a separate ledger. These can then be evaluated using the Report Painter, Report Writer or Drilldown Reporting tools. Cost of sales accounting in the new general ledger accounting:

The totals table of the new general ledger (=> FAGLFLEXT) updates the functional areas when the -ofactivate a special ledger in the Special Ledger component

Lesson 4

General Tax Processing

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Lesson 5

Tax Reporting in USA

Lesson 6

Tax Reporting in Germany

Lesson 7

Tax Reporting in European Union

Lesson 8 - Reporting in Accordance with German Foreign Trade Regulations Lesson 9

Consolidation

The individual financial statements of all associated companies forms the basis for consolidation. These aggregated financial statements contain a large number of itemized values that are merely the result of an exchange of services within the group. These values must not be included in the balance sheet, since an external third-party cannot form a realistic picture of the real financial strength and performance of the group. Comparisons cannot be made with other groups until all of the groupinternal values have been eliminated. The economic unit concept, however, states that the consolidated balance sheet cannot include payables and receivables from companies within the same group. The consolidation activity Elimination of intercompany unit payables and receivables eliminates group-internal financial relationships This includes the following: o Down payments made, down payments received for purchase orders o Receivables from affiliated companies, payables to affiliated Companies o Bills of exchange receivable, bills of exchange payable to affiliated companies o Prepayments and accrued income/accrued expenses and deferred income to be offset against the hidden reserves and goodwill. The SAP consolidation software eliminates the relevant transactions in a series of tasks. These tasks KPI reporting based on interpretation models includes: o Measure Builder Database with business-oriented tasks serves as the infrastructure for the SEM-CPM interpretation models. Page 40 of 41



o Measure Tree Display Interpretation model that illustrates the impact of operative value drivers on the KPIs with strategic significance. o Balanced Scorecard (interpretation model) Models strategies, implements them, and measures their effectiveness by linking them to the correct KPIs. The Balanced Scorecard is part of the Management System. o Management Cockpit (interpretation model) Provides an effective means of graphically presenting KPIs online and/or on walls in conference rooms, thus increasing the efficiency of management communication Data model The data basis defines the consolidation data model, that is, the characteristics and key figures, as well as their role in consolidation. The consolidation area can work with a subset of the characteristics and key figures that exist in the data basis. Data Streams The data streams identify where the consolidation data is stored. The consolidation monitor provides a graphical overview of the consolidation units and/or consolidation groups and tasks. This is the central working environment for o Executing tasks (for collecting the overall reported data, standardizing the reported data, and consolidation processing) o Monitoring the process of task processing for individual consolidation units and groups Eliminations are always posted in pairs. To enable the system to eliminate IC trading partner relations, therefore, you need to enter the relevant financial statement item data using trading partner account assignments.

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Summary of TFIN50_2 ZRH.pdf

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