59332955 co fi integration

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India SAP CoE, Slide 1

CO0004: CO Integration with FI Version 1.0


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CO Integration with FI

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Prepare Me

Purpose

Use

Challenge

Agenda


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PurposeAll functional processes finally end in accounting entries with various costobjects assignments in FI/CO. Being a CO consultant, it is expected to knowthe FI-CO Integration points. This courseware will contain integration

overview between FI-CO Components

UseOn successful completion of this training, Associate will have fair idea on..

- The Integration points between FI & CO.

Purpose and Use


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Internal Vs. external reporting:

Challenge to use different sub-modules in either finance orcontrolling according to the reporting requirements (whether externalor internal)

To align the organization structures in Finance and Controlling

Few examples:Whether all company codes should be tagged to one controllingarea or individual 1 company code :1 controlling area

Whether profit center accounting in controlling should be choseninstead of business area in financial accounting.

Determining functional area from either in cost center or GL

accounts posses an integration challenge

To make sure that only relevant general ledger accounts arecreated as cost elements to align finance and controlling reporting.

Challenges


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COA

Co.Code

GL Accounts

Primary Cost.Elmnt

Thru Sec.Cost.Elemnt

CO Objects

CO Objects

Controlling

Co.Area

Co.Code Co.Code

FI-CO Flow Org. Elements

IntegrationPoint



Sales & Distribution:

Sales Order

- Delivery

- Billing

Accounting Entry for goods movement

-Accounting Entry for Revenue & Accounts

Receivable

Accounting entries getting registered in

-PCA

-COPA getting updated for Revenues andCOGS and PCA ->getting updated forrevenues

Basic Flow And Integration Source Model (1/2)

Finance:

- AP / AR /GL

- Asset Accounting

Funds Management

Respective FI Entries

- Revenue & Cost posting in Cost center,Profit Center and CO-PA.

-Asset Creation internally is via InternalsOrder or Project systems which are

Controlling entities- Cost center and Profit center asorganization entities linked to FundCenter

Basic Modules Links to ControllingAccounting in FI



Production Planning:

- Production Order

- Goods Issue andreceipts

- Activity Confirmation

-Accounts for stocks, consumption andcost of goods manufactured

-Activity Confirmation is not consideredas it happens only in CO Module

Production order is a Cost Object incontrolling module

-PCA updated with consumption andstock entries and WIP during periodend processing

-COPA / any other cost object is updatedwith variance on period end processing

-Activity confirmation transfers the costfrom cost center to production order.This entries are recognized in profitcenter accounting

Materials Management:

Other Goods Issue likeissues to cost center orscrapping

Normal consumption entries posted withthe probability the GL accounts foraccounting could be different

-Receiver objects are normally cost centeror internal order & these entries arerecognized in Profit center accounting.

Basic Flow And Integration Source Model (2/2)

Basic Modules Links to ControllingAccounting in FI



CO Integration With FI

In respect of General Ledger Accounts in Finance which are P & L inNature, a Cost Element is created in Controlling.

At the time of Document Entry in Finance, along with the GeneralLedger Account, a Controlling Object like Cost Centre / Internal Order..etcis being entered.

Thereby, data flows from Finance to Controlling Module.Following slides shows the five basic integration points between

Finance - Controlling

They are.. - Default Account Assignments

- Additional Balance Sheet / P&L Accounts

- Open / Close Posting Periods

- Maintain Exchange Rates

- Maintain Field Status

- Fund Center Accounting



Automatic assignment occurs during postings in externalaccounting (within the FI, MM, or SD components) if we do not enter aCO account assignment objects like cost center order or project for

a cost accounting relevant posting.

Below are the few examples where automatic postings are defined and

used..- Discounts, exchange rate differences, and banking fees in FI

- Price differences and minor differences in MM

Following are the CO Assignments which are assigned to Primary costelements.

- Cost Center- Order

- Profit Center

Default Account Assignments(OKB9)



Dummy Profit Center

If No profit center is specified in posting, then Dummy Profit center is used.

Profit Center Determination

In this section, Accounts or Range of accounts are assigned to a profitcenter for the flow of values.

Balance Sheet / P&L Accounts

Profit Center Derivation

This is in addition to the above, we can derive profit center based onCo.Code, Account No, Business Areaetc.,



Open/Close Posting Periods

Assets (A)

Vendors (K)

Materials (M)

GL Accounts (S) Contracts (C)

Customers (D)

- Consultant can specify which periods to be open / close for posting ofdocuments in Finance (Internally Controls' the Controlling postings aswell)

- It is mandatory to maintain header entry (+) as a basic to make anypostings.

- However standard SAP System provides 6 types of accounts if consultantwants to maintain them individually

- Consultant can specify Period Lower Limit, Upper Limit & FiscalYear for the period in question. Following are the type of accounts.



Basically, maintaining exchange rates are mandatory for plan andactual postings: Besides this, following are the few more situations

Finance

o Translate foreign currency amounts on posting or clearing

o Determine the profit/loss on exchange rate differences

o Value open items in foreign currency

o Value foreign currency account balances

Controlling

o Determine the controlling area currency equivalents of amounts

posted in different company code currencies

o Allow project settlement to take account of different controllingarea, sender and receiver currencies.

Maintain Exchange Rates

The currency translation rates are time-dependent and can bemaintained either manually or through program



Maintain Field Status (Field Status Group)

FSV

Co.Code

Field Status

TransactionalFSG @ MD A/c Group

Field Status Group is the one which controls the document entry fields,whether they are allowed for entry or not.

If FSG is not maintained properly in customizing, some important CO

Objects may be missed from being postedwhich might cause seriousaccounting imbalances (SDRO)

S-Suppress D-Display R-Required O-Optional

Field Status Variant



Account Assignments(Asset Accounting-ACSET)

Cost center specified forAPC Values &

Depreciation Run




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Default Account AssignmentsOKB9IMG Path: Controlling Cost Center Accounting-Actual Posting-Manual Actual Postings-EditAutomatic Account Assignment



Balance Sheet / P&L Accounts(1/3)IMG Path: Controlling-Profit Center Accounting-Actual Posting-Choose Additional BS & P&LAccounts-Choose Accounts

If default Profit Centernot specified, Dummy

PC is considered



Balance Sheet / P&L AccountsContd(2/3)

VAT Derivation BS Derivation



Balance Sheet / P&L AccountsContd(3/3)

Derivation for VATaccounts thru Plant

Derivation for BSaccounts thru

Co.Code



Open/Close Posting PeriodsIMG Path: Financial Accounting Global Setting-Document-Posting Periods- Open/ClosePosting Periods

Minimal Requirement forposting -+ Header



Maintain Exchange RatesIMG Path: Enterprise Controlling-Consolidation-Data-Automatic Posting-CurrencyTranslation-Exchange Rates-Maintain Exchange Rates

User can maintainboth DirectIndirect

Quotation



Maintain Field Status (Field Status Group)IMG Path: Financial Accounting Global SettingsDocumentLine ItemControls DefineFSVariant



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CO integration with FI


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Document Entry in FinanceDoc. Entry

Enter Order / Cost centre or any specified CO Assignment Object & POST.


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Document Entry in Finance.. Doc. No.

Posted documentnumber is displayed


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Document Entry in FinanceDisplayEnter the Document number,

Company Code, Fiscal Year in T-Code FB03 & Press ENTER.

Once we display the

document, Click onAccounting Doc. toview the relatedControlling Data


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Document Entry in Controlling..

Order Number to which theCost is booked is displayed

For every Finance Document posted, a correspondingControlling Document is generated, as displayed above.


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Points To Remember

- Only General Ledger Accounts of Profit/Loss in nature are createdas a Cost Element. (Exception to this rule is Balance sheet AssetsGL accounts can be created as statistical Cost elements forbudgetary control purposes)

- Validation & Substitution features used in finance will have effect inCO Objects derivation & Postings.

- It is important to know the objective behind reporting either infinance or controlling In two comparative reports, all figures from

finance may not tally with controlling. If this is by design then wehave an answer and if not then this should have been highlighted inthe integration testing between these two modules


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Points To Remember..Contd

- In New GL Accounting (Flexi Ledger), Profit center accounting ispart of Finance rather Internal Accounting (Controlling)

- Funds Management / Functional Areas

- Field Status Group is another check point for any missing

Postings to CO Objects.

- OB52 Open / Close posting periods.

- OB08Maintain Exchange Rates for foreign Currency Postings

59332955 co fi integration

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