Sap Erp: - Balance Sheet - Income Statement - Statement of Cash Flows
Sap Erp: - Balance Sheet - Income Statement - Statement of Cash Flows
Internal External
- Executives - Legal Authorities
- Senior Management - Banks
- Administrative Staff - Auditors
- Employees - Shareholders
- Insurance
- Taxing Authorities
- Media
- Financial Analysts
Client
- An independent environment in the system
Company Code
- Represents an independent legal accounting unit
- Balanced set of books, as required by law, are prepared at this level.
- A client may have more than one company code
United States
Germany
United Kingdom
Australia
Liabilities &
Assets
Owners Equity
Chart of Accounts
- A classification scheme consisting of a group of general ledger (G/L) accounts
- Provides a framework for the recording of values to ensure an orderly
rendering of accounting data
- The G/L accounts it contains are used by one or more company codes.
Company
Global Bike Inc. Global Bike Germany GmbH Code
A listing of the accounts (assets, liabilities, equity, revenues, and expenses) that are
contained in the General Ledger
A chart of accounts must be assigned to every company code in order to create the
General Ledger for that company
Several company codes can use the same chart of accounts
950
Customer 135 Customer 123
400 150
850
Vendor 100621 Vendor 100846
100 300
Balance Sheet
- Presentation of an organizations Assets, Liabilities, and Equity at a
point in time
- Assets: What the company owns
- Liabilities: What the company owes
- Equity: The difference between Assets and Liabilities
- Assets = Liabilities + Equity
Assets Liabilities
Cash 1,000 Accounts Payable 750
Accounts Receivable 3,000 Taxes Payable 250
Equipment 500 Total Liabilities 1,250
Total Assets 4,500
Equity
Common Stock 2,000
Retained Earnings 250
Total Equity 2,250
Total Liabilities
and Equity 4,500
Income Statement
- Presentation of an organizations revenues and expenses for a given
period of time (e.g. monthly, quarterly, or yearly)
- Revenues, in a simple sense, are inflows of cash as a result of selling
activities or the disposal of company assets.
- Expenses, in a simple sense, are outflows of cash or the creation of
liabilities to support company operations.
- Revenues - Expenses = Net Income
Revenue
Sales 11,000
Deductions 750
Total Revenue 10,250
Operating Expenses
Cost of Goods Sold 4,500
Operating Expenses 3,750
Total Expenses 8,250
Once written to the SAP database, a financial document (one impacting the
financial position of the company) can not be deleted from the database.
It can be changed to some degree.
The SAP document principle provides a solid and important framework for
a strong internal control system a requirement of law for companies that
operate in the United States and in most other countries in the world.
Client
- An independent environment in the system
Company Code
- Represents an independent legal accounting unit
- Balanced set of books, as required by law, are prepared at this level.
- A client may have more than one company code
United States
Germany
United Kingdom
Australia
Liabilities &
Assets
Owners Equity
Chart of Accounts
- A classification scheme consisting of a group of general ledger (G/L)
accounts
- Provides a framework for the recording of values to ensure an orderly
rendering of accounting data
- The G/L accounts it contains are used by one or more company
codes.
Controlling Area
- A self-contained, organizational unit for which the management of
revenues and expenses can be performed
- May include one or more company codes; therefore, an enterprise can
perform management accounting analyses and reports across several
companies
- A way to identify and track where revenues and costs are incurred for
evaluation purposes
Operating Concern
- Represents a part of an organization for which the sales market is
SAP AG structured in a uniform manner Page 7-27
- A operating profit for the individual market segments can be
SAP ERP GBI 2.0 Structure for Controlling
Operating
Global Concern Concern
Company
Global Bike Inc. Global Bike Germany GmbH Code
Profit Center
- Responsible for revenue generation and cost containment
- Evaluated on profit or return on investment
- Enterprises are commonly divided into profit centers based on
Region
Function
Product
Cost Center
- Responsible for cost containment, not responsible for revenue
generation
One or more value-added activities are performed within each cost center.
Unit that is distinguished, for example, by area of responsibility, location, or
type of activity
Copy center
Security department
Maintenance department
Internal Order
- Temporary cost center responsible for cost containment, not
responsible for revenue generation
- It is used to plan, collect, and monitor the costs associated with a
distinct short-term event, activity, or project
Company picnic
Trade show/Fair
Recruiting campaign
Revenue Element
- A one-to-one linkage (mapping) between General Ledger revenue
accounts and CO revenue elements is established to permit the
transfer of FI revenue information to CO.
- Posting in FI that impact revenue accounts lead to a posting in CO to
a revenue element.
- In other words, revenue account = revenue element just different
SAP AG words depending on whether FI object or CO object. Page 7-30
SAP ERP CO Master Data
Cost Element
- A one-to-one linkage (mapping) between General Ledger expense
accounts and CO cost elements is established to permit the transfer of
FI expense information to CO.
- Postings in FI that impact cost accounts lead to a posting in CO to a
cost element.
- In other words, expense account = cost element just different words
depending on whether FI object or CO object.
Managerial Financial
Accounting Accounting
(CO) (FI)
Income Balance
Statement Sheet
Revenue
Accounts
This figure shows an example of statistical key figures. A project cost center has 12
hours worth the activity. The statistical key figure is hours and is split at:
30% to the Work Center
50% to maintenance
20% to IS
All costs for the labor will be allocated in this fashion
SAP AG Page 7-33
SAP ERP CO Processes
1,500 1,500
Cost Center
Primary Cost Element
A
1,500 1,500
Distribution
- Method for periodically allocating primary cost elements
- Primary cost elements maintain their identities in both the sending and
receiving objects
- Sender and receiver cost centers are fully documented in a unique
Controlling (CO) document.
Assessment
- A method of allocating both primary and secondary cost elements
- Primary and/or secondary cost elements are grouped together and
transferred to receiver cost centers through use of a secondary cost
element.
- Sender and receiver cost centers are fully documented in a unique
Controlling (CO) document.
In Distribution and Assessment, you further allocate costs (or quantities for Indirect Activity Allocations)
collected on a cost center during the accounting period to receivers, according to user-defined keys.
These are therefore indirect allocation methods, because the exchange of activity is not the basis for
allocating costs/quantities. Instead, user-defined keys such as percentage rates, amounts, statistical
key figures, or posted amounts provide the cost/quantity assignment basis.
The advantage of these methods is that they are easy to use. You usually define the keys and the
sender/receiver relationships only once.
Distribution and assessment are used primarily for cost centers. This is because direct cost allocation is
not possible here due to the variety of transactions, the lack of clearly defined individual activity types
and the fact that the entry of the activity is too time-consuming. For example, the costs of the company
cafeteria may be assigned based on the number of employees in each cost center. Telephone costs are
seldom allocated directly to the individual cost centers, but are collected on a clearing cost center for
each period. They are then reposted or distributed at the end of the period according to the number of
telephone units or telephone installations in each cost center.
Assessment is a method of allocating primary and secondary costs in Cost Center Accounting and
Activity-Based Costing. The following information is passed on to the receivers:
The original cost elements are assigned cumulatively, or in groups, to assessment (secondary) cost
elements. The original cost elements are not recorded on the receivers.
Sender and receiver information (sender cost center, receiver cost center, or business process)
appears in the Controlling (CO) document.
A015
A020 150
100
S010 100 S005
200
A015
A020 $75
$50
S010 $50 S005
$100
Primary and
secondary cost
elements D010 10%
A005 15%
A020 IT
A010 5%
Software Expense
$4,200 D005 20%
Assessment A015 10%
A020 IT
Supplies Expense A020 0%
S010 10% S005 30%
$500
Primary and
secondary cost
elements
A005 $705
A020 IT D010 $470
Software Expense
A010 $235
$4,200 D005 $940
Assessment A015 $470
A020 IT
A020 $0
Supplies Expense
$500 S010 $470
S005 $1,410
Fully integrated with other SAP modules including, but not limited
to:
- Financial Accounting (FI)
- Materials Management (MM)
- Sales and Distribution (SD)
- Production Planning and Execution (PP)