Bonn � Boston
Manish Patel
Discover SAP® ERP Financials
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Contents at a Glance
Overview1 ....................................................................... 27
General Ledger2 .............................................................. 39
Receivables and Payables3 .............................................. 67
Taxation4 ......................................................................... 99
Bank Accounting5 ......................................................... 131
Capitalization of Investments6 ...................................... 165
Travel Management7 ..................................................... 201
Payroll Accounting8 ...................................................... 225
Consolidation9 .............................................................. 259
Overhead Cost Controlling10 .......................................... 291
Project Accounting11 ...................................................... 321
Product Costing12 .......................................................... 351
Profi tability Analysis13 .................................................... 387
Financial Planning14 ....................................................... 419
Collections, Dispute, and Credit Management15 ............ 445
Cash and Liquidity Management16 ................................. 471
Treasury and Risk Management17 ................................... 495
Glossary A ....................................................................... 523
Index ................................................................................. 535
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Contents
Overview 1 ................................................................. 27
What Does SAP ERP Financials Offer You? ............................ 29Where Can You Use SAP ERP Financials? ............................... 32
General Ledger 2 .......................................................... 39
Overview .............................................................................. 39Functions in Detail ................................................................ 40
Corporate Structure ....................................................... 41Basic Settings ................................................................. 43The New GL .................................................................. 47Accounting Transactions ................................................. 53Integration of the New GL .............................................. 58Financial Closing ............................................................. 59Financial Reporting ......................................................... 64
Summary ............................................................................... 65
Receivables and Payables 3 .......................................... 67
Overview .............................................................................. 67Functions in Detail ................................................................ 69
Master Data ................................................................... 69Customer Billing ............................................................. 72Incoming Payments and Cash Application ....................... 77Vendor Invoice Verifi cation ............................................. 79Payment Program ........................................................... 83Document Clearing Process ............................................ 86Dunning Process ............................................................. 88Other Processes .............................................................. 92
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Reporting and Communication ....................................... 95Summary ............................................................................... 96
Taxation 4 ..................................................................... 99
Overview ............................................................................ 100Functions in Detail .............................................................. 101
Setting Up Taxes ........................................................... 101Tax Calculation and Posting .......................................... 106Tax Exemption .............................................................. 109Tax Reporting ............................................................... 110Withholding Tax ........................................................... 112The European Union and VAT Processing ...................... 116Other Tax Scenarios ...................................................... 119
Case Study .......................................................................... 124Summary ............................................................................. 129
Bank Accounting 5 ..................................................... 131
Overview ............................................................................ 132Bank Accounting Functions ................................................. 132
Banks and Bank Accounts ............................................. 133Payment Methods ........................................................ 137Payment Media ............................................................ 140Payment Program ......................................................... 143Payment Aids ............................................................... 146Bank Statement Reconciliation ..................................... 150Processing Electronic Bank Statements .......................... 153Other Bank Transactions ............................................... 157
Case Study .......................................................................... 162Summary ............................................................................. 164
Capitalization of Investments 6 ................................. 165
Overview ............................................................................ 166Functions in Detail .............................................................. 167
Investment Programs .................................................... 167
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Appropriation Requests ................................................ 169Investment Measures .................................................... 173Planning and Budgeting ................................................ 176Structuring Fixed Assets ................................................ 180Asset Transactions ........................................................ 184Additional Functionality ............................................... 188Reporting ..................................................................... 191
Case Study .......................................................................... 194Summary ............................................................................. 199
Travel Management 7 ................................................. 201
Overview ............................................................................ 202Functions in Detail .............................................................. 204
Employee Mini Master ................................................. 204Travel Requests and Approvals ...................................... 207Travel Booking .............................................................. 208Travel Expenses ............................................................. 211Expense Accounting and Reimbursement ..................... 214Compliance and Reporting ........................................... 218
Case Study .......................................................................... 220Summary ............................................................................. 223
Payroll Accounting 8 .................................................. 225
Overview ............................................................................ 226Functions in Detail .............................................................. 228
Process Overview ......................................................... 228Earnings Calculation ..................................................... 230Benefi ts and Deductions ............................................... 233Tax Calculations ............................................................ 240Payroll Processing ........................................................ 243Posting and Payments ................................................... 246Payroll Reporting .......................................................... 249Outsourcing .................................................................. 251
Case Study .......................................................................... 252Summary ............................................................................. 256
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Consolidation 9 .......................................................... 259
Overview ............................................................................ 260Functions in Detail .............................................................. 261
Consolidation Setup ..................................................... 261Data Collection and Postings ........................................ 266Currency Translation ..................................................... 270Elimination Entries ........................................................ 274Elimination of IPI ......................................................... 276Consolidation of Investments ........................................ 279Validations and Reclassifi cations ................................... 282Execution of Consolidation ........................................... 284
Case Study .......................................................................... 285Summary ............................................................................. 289
Overhead Cost Controlling 10 ...................................... 291
Overview ............................................................................ 292Functions in Detail .............................................................. 294
Overview of Controlling ................................................ 294Cost Elements in SAP .................................................... 296Cost Center Accounting ................................................ 299Internal Order Accounting ............................................ 302Activity-Based Costing .................................................. 304Period-End Closing ...................................................... 309Reporting ..................................................................... 314
Case Study .......................................................................... 315Summary ............................................................................. 318
Project Accounting 11 .................................................. 321
Overview ............................................................................ 321Functions in Detail .............................................................. 323
Project Structures in SAP .............................................. 323Project Costs ................................................................ 327Project Revenues .......................................................... 332Payments and Cash Management ................................. 335
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Claims Management ..................................................... 338Integration with Procurement and Production .............. 340Other Functionality ...................................................... 342
Case Study .......................................................................... 346Summary ............................................................................. 349
Product Costing 12 ...................................................... 351
Overview ............................................................................ 351Functions in Detail .............................................................. 353
General Concepts ......................................................... 355Product Costing Overview ............................................ 358Product Cost Planning (CO-PC) ..................................... 362Planning Aids for Costing .............................................. 366Cost-Controlling Activities ............................................ 370Actual Costing .............................................................. 376Product Costing Reports ............................................... 380
Case Study .......................................................................... 382Summary ............................................................................. 384
Profi tability Analysis 13 ............................................... 387
Overview ............................................................................ 387Functions in Detail .............................................................. 389
Profi t Center Accounting (PCA) ..................................... 389Overview of Profi tability Analysis .................................. 392Gathering Actual Data .................................................. 402Planning ....................................................................... 408Information System ...................................................... 413
Case Study .......................................................................... 414Summary ............................................................................. 418
Financial Planning 14 ................................................... 419
Overview ............................................................................ 420Functions in Detail .............................................................. 421
Common Planning Functionalities ................................. 422
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Costs Planning .............................................................. 426Revenue Planning ......................................................... 431Other Planning Elements .............................................. 436
Case Study .......................................................................... 440Summary ............................................................................. 443
Collections, Dispute, and Credit Management 15 ...... 445
Overview ............................................................................ 446Functions in Detail .............................................................. 448
Credit Management Requirements ................................ 448Credit Check and Monitoring ........................................ 451Comparison with SAP R/3 Credit Management ............. 453Dispute Management Overview ................................... 455Processing a Dispute Case ............................................ 457Integration of Dispute Management ............................. 459Collections Management Overview ............................... 461Collections Worklists .................................................... 463Collections Management Integration ............................ 465
Case Study .......................................................................... 466Summary ............................................................................. 470
Cash and Liquidity Management 16 ............................ 471
Overview ............................................................................ 472Functions in Detail .............................................................. 473
Planning Process ........................................................... 474Cash Concentration ...................................................... 478Tools and Reports ......................................................... 480Liquidity Planner .......................................................... 485
Case Study .......................................................................... 490Summary ............................................................................. 493
Treasury and Risk Management 17 .............................. 495
Overview ............................................................................ 496Functions in Detail .............................................................. 497
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Concepts and Terminology ............................................ 497Transaction Management .............................................. 501Accounting and Back Offi ce .......................................... 505Portfolio Analyzer ......................................................... 509Market Risk Analyzer .................................................... 512Credit Risk Analyzer ...................................................... 514Data Maintenance and Reporting ................................. 518
Summary ............................................................................. 522
Glossary A ................................................................... 523
Index ........................................................................................... 543
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