FI/CO Overview

FI/CO Incorporates Financial Accounting and Controlling

SD PP MM

HR

Financials
1

Controlling

Integration of Accounting
Finance Balance Sheet Capital Costs

Purchasing

Production

Sales/Distrib.

Procurement Market

Sales Market

Machines

Operating Resources

Human Resources

The Elements of Financial Accounting

Foreign Exchange Management Business Analysis

Finance Information System Executive Information System G/L Information System

Cash Management and Forecast

Multiledger Accounts Payable

Invoice Verification 4 Bank Accounts Payables General Ledger Extended General Ledger

Accounts Receivable
Credit Management

Consolidation

Data Flow FI
SD PP MM HR Sales Revenues Production Orders Purchase Orders Payroll

G/L

FI

X G/L
Extended General Ledger

A/R
Accounts Receivable

A/P
Accounts Payable

A/M
Asset Management

Financial Accounting Configuration

Financial Acct Global Settings Company code Business area Fiscal year Document General Ledger Accounting Master data Business transactions Data transfer Bank-Related accounting Accts Payable/Accts Receivable Customer accounts Vendor accounts Business transactions Credit management
6

Legal Consolidation Master data Ind financial statement data Currency translation

Asset Accounting Organizational structure Valuation Depreciation Net worth tax Special Purpose Ledger Basic settings Planning Posting Periodic processing

Corporate Structure
Client

Credit Control Area

Chart of Accounts

Operating Concern

Controlling Area Company Code Dunning Area

7

Controlling Area Company Code Business Area Company Code Business Area Dunning Area

Business Area

General Ledger
Multiple charts of accounts User-defined balance sheet/profit and loss statement versions Multiple currencies Integrated bank-related accounting Open item management for selected processes (checking accounts, risks, provisions, etc.) Flexible coding block Complete standard reporting Flexible report generator Assets Liabilities

Owners Equity
8

Accounts Payable
Real-time integration with general ledger Integration of purchasing and accounting via invoice verification Preliminary posting and tracking of invoices Management of one-time accounts Online processing of payment proposal National and international payment processes Down payment processing Internal controls Purchase Order 3-Way Match Payment Vendor Invoice
9
Cash Date 11/15/95 Explanation Accounts Payable Cash DR 500 500 CR

Business Transaction

General Ledger General Ledger Accounts Payable Reconciliation Account

Goods Receipt

Accounts Receivable
Real-time integration with general ledger Flexible credit management for accounting and sales Multivariant dunning procedure Automatic correspondence Integration with treasury Online open item tracing Easy management of incoming payments Interest for days overdue
Receipt of Payment Invoice Goods Issued
10 Business Transaction
Date 11/15/95

Accounts Receivable
DR CR

Explanation

Accounts Receivable

General Ledger COGS General Ledger Inventory Accounts Receivable Reconciliation Account

Sales Order Delivery Note Picking Quantity

Integration Between SAP Modules and FI-SL

Special Purpose Ledger
General ledger A/P and A/R Payroll Other transactions

11

Data Accumulation and Reporting

Invoice Verification Vendor Invoices Closing Entries Customer Invoices Intra-co. Cost Allocation Asset Acquisition

Cash Receipt/ Disbursement

Material Transactions Accounts Receivable

Inventory

Payroll Depreciation

Special Ledger

Asset Disposal

Extended General Ledger Report Writer

Management Reporting 12

Legal Reporting

Consolidation Reporting

Statistical Reporting

Controlling
Internal Orders

Controlling Processes

Profitability Analysis

Product Cost Accounting

13

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15

Controlling Area Currency

Controlling Area

16

The Integrated Planning Cycle

Sales Information System Order Volume Sales Planning Operating Profit Planning

Sales Volume Production Product Costing

Production Costs

Activity Prices Cost Centers Activity Quantities

17

Variances: Cost Center Report

Area
Planned 16,000 (16,000) 0 Actual 20,000 (15,000) 5,000

Where's all this overand under-absorption coming from?

Planned Actual 9,000 10,000 (9,000) (7,000) 0 3,000 Planned Actual 7,000 10,000 (7,000) (8,000) 0 2,000
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Cost Center 1

Cost Center 2

Responsibility Own External

Sources of Variances
Where's all this over- and underabsorption coming from? Due to variant costs? TARGET ACTUAL 2 Painters 2100.+ 5%

Input Side Variance Price Variance

Have the prices changed?

2 Painters 2000.-

Has the consumption volume changed?

Quantity Variance

Were Variant
19

Resource Usage Variance

Sources of Variances
Where does the variance come from? Due to variant calculation? Were the wrong activity prices used?
TARGET

Actual

Variance from the Output Side Allocation Price Variance

Actual costs: 50.30.70.150.Fixed costs

Has the operation level changed?

Volume Variance

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