financial accounting overview

FINANCIAL ACCOUNTING

OVERVIEW

CONTENT

• Chapter 01 - Enterprise structure• Chapter 02 - General Ledger• Chapter 03 - Accounts Payable• Chapter 04 - Accounts Receivable• Chapter 05 - Asset Accounting• Chapter 06 - Cash Management• Chapter 07 - Miscellaneous

Enterprise structure

Organizational Structures in R/3

Plants PlantsControlling AreaControlling Area

Operating ConcernOperating Concern

Company CodesCompany Codes

Storage Locations/ Batch/Special Stocks

Storage Locations/ Batch/Special Stocks

Valuation AreasValuation Areas

Sales OrganizationsSales Organizations Purchasing OrganizationsPurchasing Organizations

COCO

MMMMSDSD

COCO

FIFI

MMMM

MMMM

MMMM

Legal entity : company code

Organizational Structures in R/3

ClientClient

Chart ofAccounts ONTX

Chart ofAccounts ONTX

CoCd 0200

CoCd 0200

CoCd 0100

CoCd 0100

CoCd 0300

CoCd 0300

Deprec Area Belg

Deprec Area Belg

Deprec Area Nede

Deprec Area Nede

Deprec Area De

Deprec Area De

CoCd 0310

CoCd 0310

CoCd0800

CoCd0800

Deprec AreaTR

Deprec AreaTR

Overview Organization Entities in Finance

General Ledger

General Ledger

Master Data–G/L Accounts

Transaction Data–Document types : header + line items–Postings

Closing procedures–Monthly–Yearly

Reporting–Group–Legal

Master data : Chart of accounts concept

Company 0800Currency YTLLine itemdisplay x

G/L Account 1730000 bank loanBal. sheet account XAccount group Fin...

ClientClient

Company 0100Currency EURLine itemdisplay x

Chart ofAccounts

ONTX

Chart ofAccounts

ONTX

Company0800

Company0800

Company0100

Company0100

G/L Account data

Add. G/L Account data


Master data : take over - mapping

Approach

• Map local accounts to operational accounts

• Identify additional local accounts

• Translate used accounts in Turkish (short/long)

• Copy accounts to company code

• Load alternative (local) chart of accounts

• Timing : finished at end of blueprint phase

COA Basics

ONTX chart of accounts

Transaction Data : document types

One Business Transaction = One Document

BTBTBTBTBTBT


Structure of a document

Header Data

Line item Data


Document headerDocument header

Line item 1Line item 1



Balance = 0Balance = 0

Posting datePosting date

Document numberDocument number

Document typeDocument type

CurrencyCurrency

......

Document Header

Document type = journal

Outgoinginvoice

e.g. RX

Incominginvoice

e.g. KR

Bank

e.g. SB


Number Ranges

SAP Documents

Master Data

Internal Assignment

ExternalAssignment

NumberRange


Document Line Item

Document headerDocument header




Balance = 0Balance = 0

Posting keysPosting keys

Special G/L transactionsSpecial G/L transactions

Automatic Line itemsAutomatic Line items

Additional Account Additional Account

Additional AssignmentAdditional Assignment


Posting keysDEBITS CREDITS

PK 01 Invoice02 Reverse

Credit Memo05 Outgoing

Payment

PK 11 Credit Memo

12 Reverse Invoice

15 Incoming Payment

PK 21 Credit Memo

22 Reverse Invoice

25 Outgoing Payment

PK 31 Invoice 32 Reverse

Credit Memo 35 Incoming

PaymentPK 40 Debit entry

PK 50 Debit entry

60 . . .80 . . .

70 . . . 90 . . .

CUSTOMERS:CUSTOMERS:

VENDORS:VENDORS:

G/L a/c:G/L a/c:


Posting periods : central maintenance

16

Transaction Data : document postings

Taxes on Sales/purchases

• Tax base for tax calculation

• All required tax rates defined

• Determination of due dates for tax payment

• Tax calculation procedures

• Tax base for cash discount

• Dependent taxes as surcharges or deductions

• Division into deductible and non-deductible taxes

Transaction Data : document postingsT

ax Codes are cou

ntry specific

Month-end closing

General

• Balance sheet preparations

• Block postings to previous month (consollidation dpt.)

• Advance return for tax on sales & purchases

• Balance sheet & P+L statement for the month – Financial statement versions

• Document and reconcile Posting Data

• Create balance audit trail

• …

Month-end closing

Ontex closing & reporting

• Integrity checks

• Splitting up turnover by product group & country (MCSI)

• Upload to Frango (ZFR10)

• VAT declaration

• Stock list (MRN9)

• Revaluation (F.05)

• Splitting wages & salaries (for consolidation purposes)

• Wages upload

Year-end closing

• Maintain posting periods

• Balance lists for previous fiscal year

• Account balances carried forward (Turkish specific)

• Reconcile balances

• Balance sheet preparations

• Block postings to old fiscal year

• Create balance sheet & P+L statements

• Transaction summaries (compact journal + balance lists)

• Balance audit trail

31

Accounts Payable

Accounts payable

Master Data–General, legal, purchasing view

Transaction Data–Logistics Invoice Verification–Payment program

Closing procedures–Regrouping

Reporting

Company 0100Reconn.acct 44000000Pmnt terms ZB01Sort lineitems 001

Company 0800Reconn.acct 44000000Pmnt terms ZB02Sort lineitems 002Company

0800

Company0800

Company0100

Company0100

General data:Weyerhaeuser (900893)WashingtonBank detail:BE 685-0497019-59

Vendor master RecordVendor master Record

ClientClient

Master data : vendors

Intercompany

• In each company code, others entity of the Group Ontex are identified as a customer account and a vendor account.

• In consequence, all internal trade will be done in relation with those numbers.

• Those accounts contain specific trading partner number.

• All intercompany vendors start with V (e.g. V3400 = Astel)*

* Cfr. Customers – but start with I (e.g. I3400 = Astel)

Master data : vendors

Logistics Invoice VerificationMIRO

GoodsGoodsreceiptreceipt

InvoiceInvoicereceiptreceipt

PurchasePurchaseorderorder

Transaction data : LIV

Transaction data : LIV

Payment Program

Paymentproposal

run

Paymentproposal

run Pay-mentrun

Basic paymentcontrol

dataInput

parameters

Customer/VendorMasterRecords

Documents

Proposaldata

EditEdit

Printdata

ChequeBankTransfer

PayAdvice

SummaryReport

Printprogram

Printprogram

1

2

4

3

5

Transaction data : payment program

Closing procedures

• Intercompany reconciliation (F.2E)

• GR/IR clearing : F.13

• GR/IR clearing (incl. tolerances) : MR11

• GR/IR split : F.19

• Regrouping : investment invoices (F101)

• Clear down payments (F-44)

• Clear customers/Vendors (e.g. rebate agreements)

• Balance carry forward

Reporting

Purchasing journal (ZFPJ)

Accounts Receivable

Accounts receivables

Master Data–General, legal, sales organisation view–Credit management (FD32)

Transaction Data–Billing–Noted item (test)–Dunning

Closing procedures–Doubtful debtors–Revaluation

Reporting–Aging balance –Sales journal–Credit management (f.31)

Company 0800Recon.acct 40000000Pmnt terms A214Sort lineitems 001

Company 0100Recon.acct 40000000Pmnt terms A114Sort lineitems 002Company

0800

Company0800

Company0100

Company0100

General data:Lidl België (207)Gent

ClientClient

Customer master RecordCustomer master Record

Master data : customers

All customer invoices/credit notes are posted via SD – no manual (financial) invoices possible !

Transaction data : billing

Transaction data : noted items

Proposeddunningnotices

Dunningprogram

Dunningprogram

Editproposal

Editproposal

Dunningprint

&update ofrecords

Dunningnotices

Basic dunningparameters/

dataInput

parameters

CustomerVendorMasterRecords

Documents

1

2

4

3

Transaction data :dunning

Dunning Configuration Program

• Dunning procedure– Dunning interval

– No. of dunning levels

– No. of grace days

• Dunning levels

• Dunning notice sort fields

• Dunning blocks

• Dunning texts

Transaction data :dunning

Closing procedures

Transfer doubtful debtors (F103) to other balance sheet reconciliation account

Aging balance

Reporting

Sales Journal

Reporting

Asset Management

Asset Management

Master Data–Master data, default values & asset explorer

Transaction Data–Acquisition, transfer, retirement–Assets under construction

Closing procedures–Periodic posting–Depreciation run

Reporting–Depreciation table/year

Master data : assets

•Divided in different asset classes : –Per class possibility to assign to different accounts–Specific screen layouts –Default values for depreciation areas

•Per country a specific chart of depreciation•Different valuation per depreciation area – possibility to have different APC value, depreciation start date, useful life :

–Area 01- Book depreciation–Area 02- Tax depreciation–Area 40- IAS (group depreciation)

•Possibility to link multiple sub-assets to a main number •Integration with CO via cost center or internal order

Assets account determination

Transaction data

•Acquisition :–Via MM – purchase order–Via FI – from external vendor/affiliated company

•Transfer :–From one asset to another without losing details

•Retirement :–Sell with/without gain–scrapping

•Assets under contruction :–Gather all costs related : spare parts used, overhead, new parts bought,…–Follow up budget (if applicable)–Capitalize final asset(s) via settlement

Closing procedure

Periodic posting (ASKBN)

Closing procedure

Depreciation run

Reporting

Depreciation details

Reporting

Link with balance sheet

Cash Management

SAP is an

integrated package

R/3R/3 for for Client/Server Client/Server

ABAP/4ABAP/4

FIFI

COCO

AMAM

PSPS

WFWF

ISIS

MMMM

HRHR

SDSD

PPPP

QMQM

PMPM

Financial Accounting

Controlling

Assets ManagementProduction Planning

Materials Management

Sales and Distribution

Project System

Human Resources

Work Flow

Industry Solutions

Plant Maintenance

Quality Management

Integration in the SAP System

R/3 4.7 : Version of the SAP systemClient/Server : Architecture used in SAPABAP/4 : SAP’s programming language

Basic Components of the R/3 System…

Capital Resources

Capital Investments Expense costs Cash

Long-term Short-termCOCO

AMAMFIFI

COCO

AMAM

FIFI

Financial Accounting:•General Ledger•Accounts Receivable•Accounts Payable

Controlling:•Cost Center Accounting•Profitability Analysis•Product Costing

Assets Management•Control & Identification of property, plant and equipment

Basic Components of the R/3 System…

Purchase Orders Materials Services

Processes Orders Products Services

Procurement Production Sales

Material Resources

Logistics Process

Supplier CustomerSDSDPPPPMMMM

SDSD

PPPP

MMMM

Materials Management•Receiving•Inventory Management•Procurement (purchasing)•Vendor evaluation

Production Planning•Forecasting•Master Production Schedule•Materials Requirements Planning (MRP)•Production Reporting•Production Orders

Sales & Distribution•Order Management•Quotations•Pricing•Credit Management•Delivery/ Invoicing

SAP is an integrated tool

Sales &Distribution

Sales &Distribution

ProductionPlanning

ProductionPlanning

MaterialsManagement

MaterialsManagement

Finance &Controlling

Finance &Controlling

CustomerCustomer

VendorVendor

Sales Order

Shipment

Receivable Accounts / Cash Receipt

Credit Limit

Material Availability Check

Transfer of Requirements

Goods Issue to SO

Goo

ds Receipt

Accounts Payable

Invoice

Accounting DocumentProduction Cost

Production Order

Production Order Receipt

Sales Forecast / PlanP

urchase

Ord

er

Invoice Receipt

SDSD

CO-PACO-PA

Customer DBCustomer DB

ARAR

G/LG/L

Sales order request (1) Credit Limit check (2,3)

Post receivable (5)

Release to Accounting

Sales cost if.; product, quantity, revenue, costs (7)

Send goods and Send Invoice (4)

Post Sales to revenue account; offset to G/L account receivable post

reduction in e.g. inventory offset logs (6)

Reduce receivable and offset cash account (9’)

(9) Post payment to

customer account

Receive invoice

payment (8)

Integration Points SD, FI-AR, FI-GL, CO-PA

Integration Points MM, FI-AP, CO, FI-GL

MM/PPMM/PP

COCO

Vendor DBVendor DB

APAP

G/LG/L

Post payable to vendor account ( 7 )

Open item cost posted

to CO-orders or Cost Center (

2 )

Post expense on cost center or production order (14 )

Invoice receipt against purchase order ( 6 )

Post payable to

G/L account/ offset GR-/

IR account ( 8 )

Reduce payable in G/L reconciliation account/ offset cash account ( 11 )

Reduce payable

vendor account (10 )

Invoice payment to vendor ( 9 )

Goods receipt from vendor ( 4 )

Production order request (internal from SD) ( 1 )

Purchase order send to vendor ( 3 )

Goods issue form

stock to productio

n

( 12 )

Posting inventory account GR- / IR account ( 5 )

Reduction inventory and debit

expense account ( 13 )

Settle order (that can be capitalized) to work in progress account/ offset to expense account (15 )

Questions

financial accounting overview

Documents

used accounts

operational accounts

accounts payablechapter

accounts receivablechapter

additional local accounts

gl account data master

tablissements et

risques et charges et