Professional Documents
Culture Documents
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Traditional Model
EMT Model
• Customer Relations
o Sales Support
o Delivery
o Billing
o Credit
• Logistics
o Procurement
o Production
o Materials Mgt.
• Human Resources
o Payroll
o Organization
o Hiring
• Treasury
o Commitments
o Investments
o Currencies
What is SAP?
SAP has several layers. The Basis System is the heart of the data
operations and should be not evident to higher level or managerial
users. Other customizing and implementation tools exist also. The
heart of the system from a manager's viewpoint are the application
modules. These modules may not all be implemented in a typical
company but they are all related and are listed below:
Each of
these Modules may have sub-modules designed for specific tasks as
detailed below.
System-Wide Features
• Sales
o Pre-sales activity--planning and availability support for
the sales personnel
o Sales Order--The actual entry of the sales order into the
system done by the salesperson at the point of sales
perhaps using a PC and Internet connections.
o Determining where the most efficient source of the
ordered product is in inventory and shipping it.
o Delivery
o Customer Billing
o Customer Payment
• Production
o Sales and Operations Planning SOP where the sales
forecasts are used in a production planning model to
check feasibility.
o Master Production Scheduling MPS--The actual plan for
the whole production process
o Material Requirements Planning MRP--Where the
production plan is actually converted into raw materials
input requirements.
o Planned Order--When materials are available and
capacity exists this plan is created and then converted
into a
o Production Order.
o Shop Floor Control where the actual production takes
place and is registered into the system as finished goods.
• Purchasing
o Requisition--Once the Production manager plans to
manufacture something a requisition for the raw
materials required but not on hand must be prepared.
o Vendor Selection--made by the purchasing department
o Purchase order sent
o goods receipt increasing inventory
o Invoice verification as it is received from vendor
o Payment to vendor.
• Finance and Accounting
o Sales events must be captured at the proper time into the
ledger system
o Inventory must be adjusted to match goods shipped
o Inventory must be adjusted to match raw materials
received
o Inventory must be adjusted to move value from raw
materials to work in process
o Inventory must be adjusted to increase finished goods
when they are produced
o Accounts Payable must be set up for purchases
o Accounts Receivable must reflect goods billed but not
yet paid for
Business Process Engineering must not only identify all these steps
but must also find the most efficient way to minimize redundant
actions. For example, when sales are made, inventory and
manufacturing plans should be automatically updated. When
manufacturing plans are updated raw materials should be
automatically ordered from vendors. When finished goods are
shipped customers should be automatically billed at the same
instant. Real situations are far more complex than the simple
explanation above.
• Office
o Workplace
o Telephone Integration
o Appointment Calendar
o Room Reservations
o Start Workflow
o Business Documents
• Logistics
o Materials Management
o Sales/distribution
o Logistics Execution
o Production
o Production-process
o Plant Maintenance
o Customer Service
o Quality Management
o Logis. controlling
o Project Management
o Environment Health & Safety
o Central Functions
• Accounting
o Financial Accounting
o Treasury
o Controlling
o Enterprise Control
o Investmt Mgt.
o Project management
o Real Estate
• Human Resources
o Managers Desktop
o Personnel admin.
o Time management
o Payroll
o Training and Event Management
o Organizational Management
o Travel
o Information system
• Information Systems
o Executive Information Systems
o Logistics
o Accounting
o Human Resources
o Project System
o Ad Hoc Reports
o General Report System
• Tools
o ABAP/4 Workbench
o Accelerated SAP
o Administration
o ALE
o Business Communication
o Business Documents
o Business Framework
o Business Workflow
o CCMS
o Web Development
o SAPScript
o Hypertext
o Find
FI-CO OVERVIEW
OBJECTIVES
• Client--A self contained unit for technical purposes. Usually refers to the overall
enterprise managed with SAP
• Chart of Accounts--The list of accounts that are posted to everyday.
• Legal Entity--A unit with external reporting requirements, usually a corporation.
• Business Area--A subdivision of a Company Code along the lines of the business,
or a division. Used for internal reporting and profitability analysis
Sales Areas: A sales area is a combination of sales organization, distribution channel and
division.
The Reconciliation Account and Subledgers:
• The General Ledger records all G/L accounts. The Chart of Accounts is used to
organize these accounts. The Income Statement and Balance Sheet are created
from the General Ledger
• Individual G/L reconciliation accounts are recorded in detail in the Subsidiary
Ledgers and summarized in the General Ledger. Important subledgers are
maintained for:
o Accounts Recievable--Customer Accounts
o Accounts Payable--Vendor Accounts
o Asset Accounting--Asset Accounts
• The balance of the G/L accounts is automatically updated when postings are made
to a subledger.
The Purpose and Operation of the Reconciliation Account
Master Data
The concept of master data is an important one in data management. Although it may
seem complex at first glance it is the best method to eliminate duplication of data and to
ensure compatibility of data among transactions. Every customer has master data
associated with it. It is defined only once and in only one location, although there is a
hierarchy of where that data is stored.
• The customer master record is made up of three main areas that contain the
following information:
o General Data including the customer's bank details [at the client level]
o accounting data [at the company code level]
o sales data [at the company code level
• Data that exists at the client level is available to all company codes. Since
numbers are assigned to accounts at this level, a customer receives the same
account number in all company codes.
• Individual company codes store their own information on customers at the
company code level.
• Before you create a new customer master record, you should check whether the
customer already exists in the system.
Account Groups:
• The Account group controls the numbering and screen layout of master records
• You can define several account groups for one account type (D,K,S)
• You must assign an account group to every master record.
Address and Communications:
On the first screen of the customer master record basic data on the customer is listed.
This includes addresses and important numbers for communication. This data is entered
at the client level. Additional information can also be entered at the company code level.
To prevent a customer from being created twice in your system, you need to determine
who in your organization is responsible for creating new customers. Initial contact with a
new customer will probably be made by the Sales Organization and the master record
will need to be completed by the accounting and finance functions.
Bank master data includes the following items to facilitate payments to or from the
customer by check or EDI.
On the next screen of the master record you store the information that is relevant to
accounting at the company code level. This is a critical link between the sales data and
the general ledger systems.
Payment Transaction Data:
The following screen sets the parameters for the accounts receivable administration of the
customer. Payment term groups are defined in the IMG and are assigned to this account.
Likewise, tolerance limits for over and under payments of items are defined in the IMG
and assigned to the account. The days specified for check cashing time are inmportant for
the treasury and cash management modules. There are also fields for payment methods
and lockbox codes which have been defined in the IMG and assigned to this account.
Dunning Data:
The next screen shows the entries for setting up dunning for the account.
Summary: Creating and maintaining customer master records are of critical importance in
SAP. New customer masters can be created by using a reference from another account
and simply changing the relevant data. Much of the data can be automatically filled in by
a pattern created by a Group key which can be selected at the beginning of the generation
process.
Navigation Guide
Accounts Receivable Structure and Master Data
Information about Posting
Retrieving Account Data
SD and Financial Accounting Integration
Lockbox Processing
Manual Postings
Dunning
Reporting and Information Systems
Return to SAP Flows Overview
Credit Management
CRM01
The open order value is the value of all order items which have not yet been delivered.
The open order value is based on confirmed quantifies (Confirmed quantities x Credit
price = Open order value of an order). An order which has been blocked due to a credit
check does not contain confirmed quantities. The open order value does not increase as
long as the block remains in place.
The open delivery value is the value of all delivery items which have not yet been billed.
· Open billing value
The open billing value is the value of all billing items which have not yet been transferred
to Accounting.
· Receivables from sales are included in total commitments as long as they have not been
indicated as disputed items. For more information, see the chapter on processing
incoming payments and commitments.
· Receivables from special G/L transactions are transferred from special commitments to
total commitments if they are relevant to credit limit, for example payments. For more
information, see the chapter on processing incoming payments and commitments.
CRM02
CRM03
CRM04
CRM05
• Use the system settings to specify when you would like to carry out a credit
control check. You could require that checks be carried out only during sales
order processing.
• Subsequent function in Sales and Shipping cannot be carried out as long as the
relevant document is blocked by a credit check.
• A check carried out at goods issue can no longer block the transaction as goods
issue is the final function in Shipping. If a credit check is carried during goods
issue and the transaction exceeds the credit limit, it is not posted for delivery. The
system issues an error message.
CRM06
The credit control area, the risk category of the customer and the business transaction all
influence the type and scope of automatic credit checking.
Credit groups combine different business processes that are to be treated in the same way
with regards to the credit check. These credit groups are assigned to the sales document
types and the delivery document types for which a credit limit check is to be carried out.
You determine for each item category, whether an item of that item category is included
in the credit functions. The credit management field must be activated for item categories
that are to be taken into account during the credit check.
CRM07
• The customer credit exposure can be divided into a static part (open items, open
billing values and delivery values) and a dynamic part (open order value).
o The open order value comprises all partially delivered or undelivered
orders. It is accumulated for the material availability date within an
information structure in freely definable units of time or periods, ( day,
week, month).
o When defining the credit check, you specify a certain number of the
corresponding periods from which the date will be determined in the
future.
o This makes sure that sales orders planned in the future are not taken into
account when determining credit exposure.
• The 'actual date' in this example is the initial date for determining the open order
value on the credit horizon. The 'actual date' is the current date for each check. In
an order, it is the date that the order is created or changed. In a delivery, it is the
date that the delivery is created or changed.
CRM08
• The sales order or delivery value may not exceed the specific value defined in the
credit check. This value is stored in the currency of the credit control area. It is
particularly applicable if a credit limit has not yet been defined for a new
customer. You can initiate this check using a risk category defined for a new
customer.
CRM09
• When carrying out a check of this type, a credit check is triggered by changes
made in the document to values of any of the credit-sensitive fields. These fields
are proposed from the customer master record, and include, for example, terms of
payment and fixed value dates.
CRM10
• Here you must specify a number of days. Without these 'buffer days' the system
will carry out the check as soon as it recognizes that the next check date has been
reached.
CRM11
• The relationship between open items which are more than a certain number of
days overdue and the customer balance may not exceed a certain percentage.
CRM12
• By specifying the number of days, you can determine the days that oldest open
items may be in arrears.
CRM13
• Store the current dunning level in the customer master record with the company
code-specific data. If a customer reaches the dunning level, then the order is
blocked.
Finance Tables
T087J Text
TKVS CO Versions
VTBFHA Transaction