SAP TERMINOLOGY

FI MODULE S.No SAP-Term 1 Company Code 2 Business Area Account Assignment Additional Account Assignment SAP Definition The smallest organizational unit for which a complete selfcontained set of accounts can be drawn up for purposes of external reporting. Organizational unit of financial accounting that represents a separate area of operations or responsibilities within an organization and to which value changes recorded in Financial Accounting can be allocated.
Specification of which accounts to post to from a business transaction All entries in a line item that are made in addition to account number, amount and posting key. These can include: payment terms payment method

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Account Group

cost center Attributes which determine the creation of master records. The account group determines: The data that is relevant for the master record A number range from which numbers are selected for the master records

An account group must be assigned to each master record.

Account type

Key that specifies the accounting area to which an account belongs. Examples of account types are: asset accounts customer accounts vendor accounts G/L accounts

The account type is required in addition to the account number in order to identify an account, since the same account number can be used for each account type.

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Accounting Document Accounts Payable ledger Accounts Receivable ledger Accrual

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An accounting document is a representation within the R/3 System of the document (an invoice for example) that triggered the posting. Accounting documents record changes in values in a company code arising from accounting transactions. A ledger set up to account for the values from business transactions with vendors. A ledger set up to record the values resulting from business transactions with customers An accrual any expenditure before the closing key date which represents an expense for any period after this date.

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Deferral Acquisition and production costs (Fixed Assets)

Deferred income is any receipts before the closing key date which represent revenue for any period after this date. For external acquisitions; Acquisition costs include all expenses for the acquisition including incidental acquisition costs less reductions to the purchase price. For in-house acquisitions, production costs include: Direct and indirect costs including materials handling overhead Direct labor costs including payroll overhead Special production costs

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Asset Class

Fair administrative expense (can be included) The main criterion for classifying fixed assets according to legal and management requirements.

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Cashed Cheques Clearing Account

Procedure whereby the bank reports the payment of checks.

Account to which postings are temporarily recorded. Clearing accounts are auxiliary accounts that exist for technical reasons and which are repeatedly cleared. Postings may need to be made to a clearing account due to: A time gap between accounting transactions (GR/IR clearing account) Organizational task distribution (bank clearing account)

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Accounting transactions requiring clarification

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Clearing Function

Procedure by which open items are cleared. This procedure enables you to post an incoming payment and clear the invoice(s) paid in a single step.

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Cutoff Value Depreciation Key

Net value of a fixed asset, below which the system does not continue to calculate depreciation. Key for calculating depreciation amounts. The depreciation key is defined by specifying: Calculation methods for ordinary and special depreciation, for interest and for the cutoff value

Various control parameters

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Document Currency Document Date Document Number Document Type Financial Statement Version Foreign Currency Valuation G/L Account

Currency in which a document is posted. Date on which the original document (such as vendor invoice) was created. Key which identifies each document in a company code in a given fiscal year Key that distinguishes the business transactions to be posted. The document type determines where the document is stored as well as the account types to be posted. Format of Balance Sheet

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Procedure for determining at a key date the value of the current assets and liabilities posted in foreign currency.

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A structure that records value movements in a company code and represents the G/L account items in a chart of accounts. A G/L account has transaction figures that record changes to the account during a posting period. These figures are totals that are used for G/L reporting.

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CONTROLLING S.No 1 2 3 4 SAP Term Internal Orders Product Cost Controlling Overhead cost controlling Profitability Analysis SAP Definition
Internal orders are normally used to plan, collect, and settle the costs of internal jobs and tasks. Product Cost Controlling calculates the costs that occur during manufacture of a product, or provision of a service. Overhead Cost Controlling component enables we to plan, allocate, control, and monitor overhead costs Profitability Analysis analyzes the profit or loss of an organization by individual market segments. The system allocates the corresponding costs to the revenues for each market segment

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Business Area Controlling Area

Cost Center

We define business areas if we wish to create a balance sheet and a profit and loss statement for internal areas, in addition to company codes. Internal business transactions are portrayed in the controlling area. Organizational unit in an organization that represents a closed system used for cost accounting purposes. Organizational unit within a controlling area that represents a defined location of cost incurrence. The definition can be based on:

Functional requirements Allocation criteria Physical location

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Cost Center Standard Hierarchy Profit Center Primary Cost Element Secondary cost elements

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Activity Type

Responsibility for costs A cost center hierarchy comprises all cost centers for a given period and therefore represents the whole enterprise A profit center is an organizational unit in accounting that reflects a management-oriented structure of the organization for the purpose of internal control A cost element corresponds to a cost-relevant item in the chart of accounts Cost element that is used to allocate costs for internal activities. Secondary cost elements do not correspond to any G/L account in Financial Accounting. They are only used in Controlling and consequently cannot be defined in FI as an account. Unit in a controlling area that classifies the activities performed in a cost center.

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Activity types in production cost centers are machine hours or finished units. Activity types are used as a synonym of "Allocation base" as used in business publications. Rules used for postings in internal accounting (Controlling).
The fiscal year variant contains the number of posting periods in the fiscal year and the number of special periods During settlement, some or all of the plan or actual costs incurred on an object are allocated to one or more receivers. The system automatically generates offsetting entries to credit the sender object We can use them as the basis for internal allocations, we can use them as the basis for internal allocations, Cost center planning involves entering plan figures for costs, activities, prices or statistical key figures for a particular cost center and a particular planning period. We can then determine the variances from these figures when we come to compare these plan values with the costs actually incurred.

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Account Assignment of Controlling Objects Fiscal Year Variant Settlement

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Statistical Key figures Cost Center planning

PP MODULE

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SAP Term
Baseline date Base Unit of Measure Batch BOM Consumption Based Planning Contracts Conditions Goods receipt 103 Goods Receipt 105 Goods Receipt Invoice Verification

SAP Definition
Date from which the Payment term is applicable from. Stock Keeping unit of measure different production lots, delivery lots, quality grades of a material Bill of materials Consumption Based planning is forward planning based on Re-order point and other methods. Typically applicable for B, C category materials There are mainly two types in it Quantity and Value Basic elements in pricing procedure like Basic price, Excise duty, freight etc Denotes Physical inward movement of goods or materials (Purchase, Production or other receipts) Physical inward movement in blocked stock. (No Stock or Valuation updated) (Purchase) Released Stock to unrestricted from blocked stock (purchase) The matching of documents created during the purchase order process, the goods receipt process,

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and the accounts payable process that is part of the internal controls system within an organization. The master record wherein data specific to vendormaterial combination is maintained e.g. the delivery time for a material by two suppliers can vary. Source of information on the procurement of a certain material from a certain vendor Delivery term like EX works, FOB etc Code for the part It is backward schedule planning Weighted average of Materials, The moving average price is calculated by dividing the value of the material by the quantity of material in stock. It is recalculated automatically by the system after each goods movement or invoice entry. Classification key indicating the type of material movement (for example, goods receipt, goods issue, physical stock transfer). This comprises of Contracts and schedule agreements The indent for procurement either by user or MRP/CBP planning A purchasing organization procures materials and services, negotiates conditions of purchase with vendors, and bears responsibility for such transactions. Approval process Code of Approver T Purchase order with staggered deliveries List of all vendors for a material in a plant The supplier who converts companys components into semi finished goods and returns the semi finished goods back to company with conversion invoice. Supplier

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Info-record/ Purchase Info record INCO Terms Material code MRP planning Moving Average Price

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Movement type Outline Agreement Purchase Requisition Purchase Order Purchase Organization Release Strategy Release Code Request for Quotation Schedule Agreement Source List Sub-contractor Vendor

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MM Module
Sr. No. A SAP Term Material Type SAP Definition Material Type is the Type of material that is being

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used. Finished Product- FERT, Semi-Finished Product-HALB, Spares-ERSA, Raw materials-ROH. Material The system identifies a product as Material, and the transactions for this material is carried out for the material code generated in the system. During the creation of the Material in the Material Master, the Sales, Purchase, MRP, accounting and Production specs of the Material are keyed in. Classification Classification is the classifications of materials under a defined class, which contains the defined characteristics of the material. The values of this characteristics are to be filled for every material Material Group It is a grouping of the material done for reporting purpose in the system. MRP Types The MRP types specify the MRP to be carried out for the Material, whether a Lot-For-Lot MRP or a Consumption based MRP is to be carried out. Lot Sizing During the MRP Run the system creates procurement Procedures elements, where-in the materials are procured in the specified lot-sizes specified. MRP Controller MRP controller is the Person, who evaluates the results of the MRP run in the StockRequirement List StockRequirement MRP controller is the Person, who evaluates the List results of the MRP run in the StockRequirement List BOM Bill of Materials- it is a list of components required to manufacture the material and the quantity of the components is also mentioned. Alternative BOM Alternatives BOM are created for the same material. Route Sequence of Operations to be followed for carrying out production Work center The organizational unit, where an operation is carried out Sales order An object created through which the purchasers requirements are fulfilled MRP run Material Requirement Planning: For every requirement, which comes through a sales order line item, the MRP Run carries out a Material as well as Capacity requirement Planning Planned order Planned order is a mock production order or a Purchase order(When it is a mock Purchase order it is called Purchase requisitions , which the system creates during the MRP Run. These procurement elements are generated only in case of shortage of a Particular material in stock Production order The Production order is a object through which the requirements demanded in the sale order line item

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are produced Production Production schedule is the person , who will be scheduler handling and controlling the particular production order. Scheduling of order Scheduling of the order will schedule the order according to the per piece time recorded in the operations of the route. Costing of order Costing of the order will calculate the planned cost of the order Release of order Releasing will release the order on the shop floor and declare the start order execution. Operation A work center is attached an operation and an activity is carried out at the work center Sub-Operation Sub-Operation is the operations that are carried out so as to carry out the main operation Operation overview Operation overview Screen in the order, shows all the Screen operations involved in the order and its Quantity to be processed, the date of start and finish of the operations Operation quantity Operation quantity is the quantity to be produced at the operation Scheduling Type Forward Scheduling, Backward Scheduling, Current date Scheduling Basic dates Basic Start Date of the order and Basic finish Dates of the order Schedule dates Schedule Start Date and Schedule Finish Date of the order, i.e. (Basic Dates + Buffer Time) Scrap Quantity Scrap quantity is the expected scrap Quantity at the order level or at Operation Level, which is recorded as not useful and would be thrown away or used for any other use Component Component is the Lower level of the material that is under question or production Component It specifies the total number of the components overview screen of required in an order and the quantity committed for the order the order Confirmations Declaring production operation wise and work center wise is called confirmations in the system. Confirmations can be cancelled and re-recording of the output is possible in case the recording done is incorrect Yield Partial Confirmations Final Confirmations Yield is the Output to be declared in the confirmation. Declaring partial output quantity out if the total output quantity Declaring the Total quantity, that is to be confirmed

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20 Activity Types Activity Types are the Activity like Set Up, Machining, and Labor Time to be recorded against that forecasted for the order. Each activity type will have a Per period cost attached to it, thereby calculating the actual cost required for the time required at Set up, machining and labor. This gives Planned versus actual cost analysis Rework refers to the rework of the quantity which is rejected at an operation, that is it will be reworked from the initial operations. The rework operations required can be triggered automatically Committed quantity is the quantity committed by the system against that actual required for executing the order Withdrawn Quantity is the quantity issued to the order Goods Issue is the quantity issued to the order. Goods issue can be to the order or to the cost center. Goods issue can be planned or Unplanned. Goods withdrawal for issuance is always from a Storage location Goods receipt is the receipt of a certain quantity from an production order or from a purchase order (from vendor) in to a storage location Storage location is a place, where the Goods are stored, from where goods are issued or where the goods are received in to. The quantity at the location is valuated at material master price (S-standard price or V-Moving average price) Movement Type suggests the Movement of goods and the type of movement Confirmed Yield is the Confirmed Production order quantity Confirmed Scrap is the Confirmed Operation Scrap quantity Back-flush is the automatic and Proportionate withdrawal of BOM quantity to the order, this is in proportion to the quantity confirmed. Units of measure Batch is the Batch Number and Characteristics given to the material under flow i.e. during material issue or receipt from or to a storage location Co-Product is the product which is produced while production of the main product and which has certain appreciable sale value

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Rework

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Committed Quantity Withdrawn quantity Goods Issue

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Goods receipt

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Storage location

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Movement Type Confirmed Yield Confirmed scrap Back-Flush UOM Batch Co-Product

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33 34 35 36 37 38 39 By-Product Variances Settlement By-Product is the product which is produced while production of the main product and which has very less or nil sale value Variances are the difference between the planned and the actual cost of production. This is a period end activity Settlement is the activity of transferring or allocating of costs from one cost object to the other, i.e. from the production order to WIP to sales order. Alternative Sequence of operations in a route can be of used

Alternative Sequence operations Parallel sequence of Parallel Sequence of operations in a route can be operation used Missing part List Missing part List Provides we with the List of missing parts in the manufacture of the order System status Shows the status of the order and the operations of the order.

SD MODULE

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SAP Term Customer

SAP Definition All parties, related to sales, with whom the company transacts business directly. A customer can either be a sold-to-party, ship-to-party, bill-to-party or payer Division Group of similar products Distribution Channel The distribution channel represents the channel through which saleable materials or services reach customers e.g. wholesale, retail and direct sales. Plant A plant can either be a place of production, or a single storage location, or a combination of closely situated storage locations where stock is kept. Sold-to-Party Person or company that places an order for goods or services. The sold-to party can also perform the functions of the payer, bill-to party or ship-to party. Ship-to-Party Person or company that receives the goods. The ship-to party is not necessarily the sold-to party, the bill-to party or the payer. Bill-to-Party Person or company that receives the invoice for a delivery or service. The bill-to party is not necessarily the payer who settles the bill. Payer Person or company that settles the bill. The payer is not necessarily the bill-to party.

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9 10 11 12 13 14 15 16 17 18 Inquiry Quotation Sales Order Delivery Order Picking Posting Goods Issue (PGI) Invoice Proforma Invoice Credit Memos Debit Memos A document to record customer inquiries. Document type for sending quotations to the customers Document Type to enter the details of the order received from the customer. Document created to initiate delivery of goods to the customer. Taking goods from a storage location as per the needed quantity for shipping When the goods leave the company, issue of goods is posted in the system. This is called PGI. Document used to bill a customer for goods delivery. An invoice that is created on paper to provide the customs, other authorities or customer with evidence of the price of the goods. A sales document created on the basis of a customer complaint. This reduces receivables in Financial Accounting. A sales document created on the basis of a customer complaint. This increases receivables in Financial Accounting.

PM MODULE S.No SAP Term 1. Functional Location SAP Definition The business object functional location is an organizational unit within Logistics, that structures the maintenance objects of a company according to functional, process-related or spatial criteria. A functional location represents the place at which a maintenance task is to be performed. A functional location represents system area at which an object can be installed. A piece of equipment is an individual object that is to be maintained independently. Each piece of equipment is managed independently in the system, so that you can:

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Equipment

Manage individual data from a maintenance perspective for the object Perform individual maintenance tasks for the object Keep a record of the maintenance tasks

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performed for the object

Collect and evaluate data over a long period of time for the object

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Bill of material

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Measuring Point

Pieces of equipment can be installed and dismantled at functional locations. The usage times for a piece of equipment at a functional location are documented over the course of time. Since many of these physical objects are managed as "assets" in Asset Management, the term "piece of equipment" was chosen for objects defined from a technical perspective, in order to avoid confusion with the activated tangible assets. A maintenance bill of material (BOM) is a complete, formally structured list of the components making up a technical object or an assembly. The list contains the object numbers of the individual components together with their quantity and unit of measure. The components can be stock or non-stock spares or assemblies, which in turn can be described using maintenance BOMs. Measuring points in the R/3 System describe the physical and/or logical locations at which a condition is measured. In Plant Maintenance, measuring points are located on technical objects, in other words, on pieces of equipment or functional locations The data transferred to the system after a measurement has been taken at a measuring point or a counter is described in the R/3 System as a measurement document. Agreement required depending on setting before an order may be released or technically completed. You can use permits to ensure that special approval must be obtained before orders are executed. Maintenance task lists describe a sequence of individual maintenance activities which must be performed repeatedly within a company. Task lists are used to standardize these recurring work sequences and to plan them more effectively. Description of the maintenance and inspection tasks to be performed at maintenance objects. The maintenance plans describe the dates and scope of the tasks.

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Measurement Document Permits

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Task lists

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Maintenance plans

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9. Maintenance Strategy A maintenance strategy defines the rules for the sequence of planned maintenance work. It contains general scheduling information, and can therefore be assigned to as many maintenance task lists (PM task lists) and maintenance plans as required. A maintenance strategy contains maintenance packages in which the following information is defined: The cycle in which the individual work should be performed (for example, every two months, every 3,106.86 miles, every 500 operating hours) The work center in plant maintenance represents one person or a group of people who perform the maintenance work .

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Work center

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Maintenance notification

Maintenance notification in maintenance processing in the event of a malfunction or exceptional situation to:

Describe the exceptional technical condition at an object Request the maintenance department to perform a necessary task Document work that has been performed

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Maintenance order

Maintenance notifications document maintenance tasks completely, and make them available for analysis in the long term. You can use them for preliminary planning and execution of tasks. Maintenance order is used for:

Plan tasks in detail with regard to type, scope, dates and resources Monitor the execution of tasks Define rules for account assignment, settlement and budgets Enter, assign and settle the costs which arise from tasks

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