FIOverview-ClevelandStateUniversity.pptVIP

FI Overview Financial Accounting Financial Accounting CO/EC Overview Controlling Controlling FI and CO comparison FI/CO Organizational Structures Client Company Chart of Accounts Company Code Business Area Credit Control Area Controlling Area Client Highest hierarchical level in an SAP system A complete database containing all the tables necessary for creating a fully integrated system Master records are created at the client level Company Consolidated financial statements are created at the company level A company can include one or more company codes All company codes must use the same chart of accounts and fiscal year Chart of Accounts A listing of the accounts A chart of accounts must be assigned to every company code Several company codes can use the same chart of accounts A different chart of accounts can be used if a different grouping of the chart of accounts is required Company Code A required structure A legally independent entity The smallest organizational unit for which accounting can be carried out The level where business transactions are processed The level where accounts are managed The level where legal individual financial statements, such as the balance sheet and the profit and loss statement, are created Credit Control Area An organizational unit or area of responsibility created to control customer credit limits A company code is assigned to one and only one credit control area Multiple company codes can be assigned to one credit control area Controlling Area An organizational unit defining the companys cost/ managerial accounting operations A company code is assigned to one and only one controlling area A controlling area can have multiple company codes assigned to it This allows cross company cost allocations and reporting * FI AP AR AM GL CON Special Ledger G/L Reporting Legal or external reporting Balance sheet Income Statement Statement of Financial Position Stockholders Bankers, Lenders IRS, Taxing Authority External Audit