SAP FICO

SAP CO (Controlling) Introduction

2012-12-25T12:32:00.001-05:00

Introduction

The SAP CO (Controlling) Module provides supporting information to Management for the purpose of planning, reporting, as well as monitoring the operations of their business. Management decision-making can be achieved with the level of information provided by this module.

Some of the components of the CO(Controlling) Module are as follows:

· Cost Element Accounting

· Cost Center Accounting

· Internal Orders

· Activity-Based Costing ( ABC)

· Product Cost Controlling

· Profitability Analysis

· Profit Center Accounting

The Cost Element Accounting component provides information which includes the costs and revenue for an organization. These postings are automatically updated from FI (Financial Accounting) to CO (Controlling). The cost elements are the basis for cost accounting and enable the User the ability to display costs for each of the accounts that have been assigned to the cost element. Examples of accounts that can be assigned are Cost Centers, Internal Orders, WBS(work breakdown structures).

Cost Center Accounting provides information on the costs incurred by your business. Within SAP, you have the ability to assign Cost Centers to departments and /or Managers responsible for certain areas of the business as well as functional areas within your organization. Cost Centers can be created for such functional areas as Marketing, Purchasing, Human Resources, Finance, Facilities, Information Systems, Administrative Support, Legal, Shipping/Receiving, or even Quality.

Some of the benefits of Cost Center Accounting :
(1) Managers can set Budget /Cost Center targets;
(2) Cost Center visibility of functional departments/areas of your business;
(3) Planning ;
(4) Availability of Cost allocation methods; and
(5) Assessments/Distribution of costs to other cost objects.

Internal Orders provide a means of tracking costs of a specific job, service, or task. Internal Orders are used as a method to collect those costs and business transactions related to the task. This level of monitoring can be very detailed but allows management the ability to review Internal Order activity for better-decision making purposes.

Activity-Based Costing allows a better definition of the source of costs to the process driving the cost. Activity-Based Costing enhances Cost Center Accounting in that it allows for a process-oriented and cross-functional view of your cost centers. It can also be used with Product Costing and Profitability Analysis.

Product Cost Controlling allows management the ability to analyze their product costs and to make decisions on the optimal price(s) to market their products. It is within this module of CO (Controlling) that planned, actual and target values are analyzed. Sub-components of the module are:

· Product Cost Planning which includes Material Costing( Cost estimates with Quantity structure, Cost estimates without quantity structure, Master data for Mixed Cost Estimates, Production lot Cost Estimates), Price Updates, and Reference and Simulation Costing.

· Cost Object Controlling includes Product Cost by Period, Product Cost by Order, Product Costs by Sales Orders, Intangible Goods and Services, and CRM Service Processes.

· Actual Costing/Material Ledger includes Periodic Material valuation, Actual Costing, and Price Changes.

Profitability Analysis allows Management the ability to review information with respect to the company’s profit or contribution margin by business segment. Profitability Analysis can be obtained by the following methods:

· Account-Based Analysis which uses an account-based valuation approach. In this analysis, cost and revenue element accounts are used. These accounts can be reconciled with FI(Financial Accounting).

· Cost-Based Analysis uses a costing based valuation approach as defined by the User.

Profit Center Accounting provides visibility of an organization’s profit and losses by profit center. The methods which can be utilized for EC-PCA (Profit Center Accounting) are period accounting or by the cost-of-sales approach. Profit Centers can be set-up to identify product lines, divisions, geographical regions, offices, production sites or by functions. Profit Centers are used for Internal Control purposes enabling management the ability to review areas of responsibility within their organization. The difference between a Cost Center and a Profit Center is that the Cost Center represents individual costs incurred during a given period and Profit Centers contain the balances of costs and revenues.

ASAP Methodology/ 6 Phases of Implementation

2012-08-11T15:49:00.000-04:00

6 phases of Implementation SAP

1) Presales

In this phase, SAP and other ERP’s try to sell their products to the clients (i.e. companies). And then company chooses which is more suitable for their requirements (let’s say they chose SAP, then our work starts.)

2) Preparation

Landscape information/ preparation (server info. Cost, how many people going to use it etc.)

· Team size: two teams implementation team and core team

· (Project managers and steering committee from implementation team and core team together called PMO: Project Management Organization)

· As is study: study of current situation, processes, legacy system etc. This is done by core team.

· As is flow chart (tools are Visio, arise etc.)

· Gather all the reports

· Study legacy system

· Information on drawing (handled by Document Management System DMO, also by PP)

· Gather information on interfaces-must have, need to have, nice to have

· Document As Is

· Sign off

3) Business Blueprint

(Requirement analyze phase)

· Gather requirement for legacy

· To be

· GAP analysis (difference between as is and to be)

· To be process flow

· List of interfaces to be finalized (must have done now and need to have will be post go live)

· List of reports

· RICEFW objects (Reports, Interfaces, Conversion, Enhancements, Forms and Workflow)- These are customize reports.

· Functional specification- for all RICEFW objects

· Technical specification

· Sign off on docs above

· Test scripts

· Test cases

· Test scenario-Simple, complicated and complex

· Business process procedure (ASAP)

· Using PowerPoint all functional consultant give a demo

· Using PowerPoint presentation give demo only for your module (workshop)

· Using 800 client give a SAP demo-800 is IDES server (IDES never have customer information)

· Q&A database (to be answered by core team)

· Organization structure

· Collision list (material, vendor and customer, unit of measure)

· To be documentation

· To be sign off (consultant and project manager)

4) Realization

· Carry out baseline testing in 800 clients

· You are provided with a new client 200

· Carry out basis configuration (back end) - done by consultant

· Copy of configuration sent to client 300

· Testing carried out in 200-300 is a golden client; no master data, just configuration so we can’t do testing in 300 (testing by core team)

· You are provided with a new client 400 (basic)

· Carry out additional configuration in 400 (200+400)

· Copy of configuration sent to 300

· Testing carried out in 400 (core team)

· You are provided with a new client 600 (sandbox)

· Carry out additional configuration in 600 (600+200+400)

· Copy all configurations to client 300

· Testing carried out in 600

· Using client 600

· Upload master data across all modules (sample load of few parts or entire data end as per client wants)

· All RICEFW objects must be ready tested by you and ready for testing by business

· Carry out integration testing 1 in client 600 (across all modules)-simple scenario (10) and complicated scenario (10)

· Integration testing in client 600 (across all modules, group test), complex scenario (5)

· Training needs and documents, identify roles and responsibility (based on SOX compliance)

· Training client 910 produced by basis

5) Pre go live phase

· Suggest business to clean up master data in legacy, all configurations from golden client will be moved to 910, 960 and 999

· Master data templates provided by business- if we upload just sample data before then we need to provide templates here otherwise templates provided when entire data uploaded in previous phase)

· Upload master data there are 2 tools: LSMW and interfaces (interfaces like Biz Talk, tibco, XI etc)

· Training session carried out

· You are provided with a new client 910 (Development server)

· Master data upload into 910

· Sometimes Business carried out integration testing 3

· You are provided with a new client 960 (quality and integration test server)

· Master data upload into 960

· You are provided with a new client 999 (production server)

· Master data upload to 999 (this is the live server use for business)

· Cutover activities (in client 999); when to stop legacy, when to start SAP, when to run MRP, controlled start up

6) Post production support:

· Configuration change

· Master data changes

· Transaction level changes

· Some more training

· Master data to be plugged

· Missing authorization

· Complete all documentation work (For both configuration and end use depend upon client)

Depreciation methods

2012-08-09T15:37:00.001-04:00

Here is a example of the depreciation methods and different methods:

Suppose a piece have acquisition and production value of $1000, life value is 10 years and scrap value is $2000

Straight line method without basis reduction:

Cost/life --> $10000/10--> $1000

Straight line method with basis reduction:

(cost-scrap value)/life = $800

Diminishing balance method:

%=1/life= 10%

For 1st year its $1000 and net book value is $9000

For 2nd year its 10% of NBV of first year that is $900 and net book value for second year is $9000-$900= $8100

Accumulated depreciation for first year is $1000, for second year is $1900 etc.

Asset master record AS01

2012-08-09T13:10:00.000-04:00

Assets are created under a folder called asset class. Asset class are nothing but classification of assets.
Asset classes are buildings, vehicles, intangible assets, assets under constructions etc.
We assign number ranges, screen layouts and account determination, default values to the asset class. Account determination contains acquisition cost account, depreciation expense account, accumulated depreciation account, gain/loss account, revaluation account etc.

Asset Accounting

2012-08-04T11:45:00.000-04:00

In SAP FICO, Asset Accounting (FI-AA), is used for managing and supervising fixed assets. It works as a subsidiary ledger to the FI General Ledger.
Asset Accounting is intended for international use, thats why there is no country specific rules in SAP system.
Asset Accounting is highly integrated with other modules and it can post directly to other modules.

Asset life cycle:

iDoc types and applicable message types

2012-08-03T10:31:00.002-04:00

Outbound processing:

BENREP BENEFIT1
CARNOT DELVRY01
CREADV PEXR2001, PEXR2002
DEBADV PEXR2001, PEXR2002
DELFOR DELFOR01
DELINS DELFOR01 (FDS and JIT)
DELJIT DELFOR01
DESADV DELVRY01, DELVRY02, DELVRY03 (previously: DESADV01)
EXPINV EXPINV01, EXPINV02, EXPINV03
GSVERF GSVERF01
IFTMIN SHPMNT03
IMPINV IMPINV01
INVOIC INVOIC01
ORDCHG ORDERS01, ORDERS02, ORDERS03, ORDERS04, ORDERS05
ORDERS ORDERS01, ORDERS02, ORDERS03, ORDERS04, ORDERS05
ORDRSP ORDERS01, ORDERS02, ORDERS03, ORDERS04, ORDERS05
PAYEXT PEXR2001, PEXR2002
PRICAT PRICAT01
PROACT PROACT01
QUOTES ORDERS01, ORDERS02, ORDERS03, ORDERS04, ORDERS05
REMADV PEXR2001, PEXR2002
REQOTE ORDERS01, ORDERS02, ORDERS03, ORDERS04, ORDERS05
SHPADV SHPMNT03
SHPMNT SHPMNT01, SHPMNT02, SHPMNT03, SHPMNT04
SHPORD DELVRY01
WHSORD DELVRY01

Inbound processing:

CREADV PEXR2001, PEXR2002
DEBADV PEXR2001, PEXR2002
DELFOR DELFOR01
DELINS DELFOR01 (FDS and JIT)
DELJIT DELFOR01
DELORD ORDERS03, ORDERS04, ORDERS05 (order with reference to scheduling agreement)
DESADV DELVRY01, DELVRY02, DELVRY03 (previously: DESADV01)
FINSTA FINSTA01
GSVERF GSVERF01
LOCKBX FINSTA01
INVOIC INVOIC01
ORDCHG ORDERS01, ORDERS02, ORDERS03, ORDERS04, ORDERS05
ORDERS ORDERS01, ORDERS02, ORDERS03, ORDERS04, ORDERS05
ORDRSP ORDERS01, ORDERS02, ORDERS03, ORDERS04, ORDERS05
PROACT PROACT01
REMADV PEXR2001, PEXR2002
REQOTE ORDERS01, ORDERS02, ORDERS03, ORDERS04, ORDERS05
SHPADV SHPMNT03
SHPCON DELVRY01
TXTRAW TXTRAW01, TXTRAW02
WHSCON DELVRY01

iDoc transactions in SAP

2012-08-02T21:45:00.000-04:00

The following transactions can be used in iDoc transactions.

WE02: iDoc list report ( It can be used to display and edit iDocs.)
WE19: Test tool for iDoc processing (mock up)
WE20: Partner Profile
WE21: Ports in iDoc processing ( It identifies an external port that controls the iDoc flow to an external system, For example, RFC, File, ABAP-PI etc.
WE41: Outbound process code
WE42: Inbound process code
BD87: Inbound processing
BD88: Outbound processing

SAP iDocs EDI

2012-08-02T19:31:00.002-04:00

The iDoc is an example of Electronic Data Interchange (EDI). EDI is also called paperless exchange.

EDI (Electronic Document interchange) - EDI is the electronic exchange of business documents between the computer systems of business partners, using a standard format over a communication network.

EDI can be of two types: Outbound and Inbound.

Advantages of EDI idocs:

Reduced Data entry errors

Reduced processing time

Availability of data in electronic form

Reduced paperwork

Reduced Cost

Reduced inventories and better planning

Standard means of communications

Better business process

IDOC:IDOC is a container that can be used to exchange data between any two processes.
1. One Control Record.
2. One or many Data Record
3. One or many Status record.

IDocs are defined and considered on two levels, the technical and the business level. The former allows them to support application-independent functions, e.g. routing and handling technical exceptions.

Technical level

Defined by the three record types compatible with the IDoc interface:

Control record

Data record

Status record

Business level

Defined by the segments of an IDoc. Segments are structures used to interpret field SDATA in the data record. An IDoc type is defined by the relevant:

Segments

Attributes of these segments

(e.g. maximum usage, hierarchical sequence, segment status)

Let's see them now.

Control Record:

It contains the general information about that IDoc. It stores the sender identification, receiver identification and IDoc type.Cotrol Records are stored in the data dictionary table EDIDC and it can be views by transaction code SE11.Idoc type is the key information for IDoc processor to interpret the data containing in that IDoc.

Important Fields containing in Control records are

Mestyp: (Logical message type)

Idoctp: (Idoc type -Basic structure of the IDoc)

Cimtyp: (Structure of customer extension)

Rcvprt: (Partner type of the receiver)

Rcvprn: (Partner number of the receiver)

Rcvpfc: (Partner function of the receiver)

Segnam: (Segment type)

Sdata: (Actual data with maximum 1000 byte-long character)

Data Records: It contains the actual data to process.Data records are stored in the data dictionary table EDIDD.Data records consists with two parts segment name and segment data. For each segment type of the IDoc structure, there is a DDIC structure with the same name. A field string with this structure is used for creating a data record. The application data is mapped to the field string. The segment type is written to the field SEGNAM, and the field string is written to the field SDATA. This data record is then included in the internal table with the structure edidd.

The fields in data records are

Status Record: It stores the status of IDOC. The status records are stored in the data dictionary table EDIDS.

The important fields in these records are

DOCNUM

STATUS

STATXT

SEGNUM

iDoc Control Data:

Each iDoc has a control data. It provides administrative data such as iDoc number, sender, receiver, port, message type and iDoc type information.

PORT:
Port is used in the outbound process to determine the name of the EDI subsystem program, the directory path where the IDOC file will be created at the operating system level, the IDOC file names and the RFC destinations.
RFC Destination:
Used to define the characteristics of communication links to a remote system on which a functions needs to be executed.
Partner Profile:
Partner profile specified the various components used in an outbound process (Partner number, IDOC type, message type, Port, Process code), the mode in which it communicates with the subsystem (batch or immediate) and the person to be notified in case of errors.
Message Control:
Used in pricing, account determination, material determination, and output determination. The message control component enables you to encapsulate business rules with out having to write ABAP programs.

Each IDOC is assigned a unique number for tracking and future reference.

IDOC consists of several segments, and segments contain several fields.

Currency in SAP FICO

2012-08-01T17:46:00.003-04:00

There are mostly three type of currencies in SAP FICO

Company code currency :

Parallel Currency

Group currency

If the account currency is same as the company code currency, then you can post to that GL account in any transactional currency. But if Account code currency is different from the company code currency, SAP system thinks that, the GL account is foreign currency GL account and hence should be able to be posted only in that foreign currency of that GL account and not in any other currency including its own company code currency.

For example if a company code currency is USD and GL account currency is also USD then we can post in any transaction currency. But if company code currency is in USD and GL account currency is in EUR then we can post to that GL only in EUR not in any other currency, not even in USD.

Dunning

2012-08-01T16:47:00.000-04:00

Dunning is an important field in customer/ vendor master record in SAP FICO system. It reminds customers to pay bills on time. It has 4 levels and at each level system send message to customer.
In dunning, it is very important to assign dunning parameters to master data. That's how system gets to know how to dun a customer.
We can put a dun block too in the master data.
Dunning can be used to check secure customers in credit management.

General Ledger, GL, G/L Interview/ Certification questions

2012-07-31T18:27:00.002-04:00

I can create G/L at Charts of Account but not at Company Code - True
I can create G/L account in the required Company Code without creating in Charts of Account. -False
I can create Vendor account in purchasing Organization without creating in general data.- False
(Must have to create first in General data)
I have to create G/L in Charts of account and then have to create in all company code.- False
If a vendor account is not created in Company code level, it can not be used for posting. -True

SAP FICO Account Payable Introduction

2012-07-30T12:16:00.002-04:00

from Ketan Patel

Courtesy:http://www.slideshare.net/eddai

Void issued checks FCH9/ reprint checks FCH7

2012-07-27T11:45:00.002-04:00

In case of voiding an issued check for some reason we can do it through FCH9.
It does void check but payment is not going to get reverse.
We have to reprint the check via FCH7. It allows to void and reprint the check.

Void an unused check

2012-07-27T11:43:00.000-04:00

Checks can be printed wrong, ripped during printing etc. So it need to get void.

in SAP FICO system, we can void check through, FCH3. Give the check number you want to void (must be unused) and the void reason.

Now when you want to assign new check it will not allow you to assign the same check number.

Payment through checks/ manual check FCH5

2012-07-27T11:29:00.000-04:00

In FBL1n, if we can see we can not find any check information. What if we want to pay via check ? We have to pass it as cash and then assign it to a check.
For example, we want to assign a check for a line item paid in FBL1n. We want to assign a check for payment document. FCH5 is the answer.
Enter payment document number, company code, house bank in FCH5 screen. It will also ask for check number. Here we need to the next check number available. SAP FICO System will automatically pull adrress and other data. Go ahead and save it.

Check Lots FCHI

2012-07-27T11:21:00.002-04:00

FCHI is the t code to create check lots for given house banks in SAP FICO system.
Here we give company codes, house bank (its the bank through which we want to pay) and account ID (for bank)
Here we can set up check lots their to and from check numbers ranges.

Automatic clearing F.13

2012-07-27T11:07:00.000-04:00

In SAP FICO system, we have many vendors. It is not possible to check for each and every vendors and check for invoice due to clearing . So SAP system provides automatic clearing in which if system found certain criteria match then it will go ahead and clear line items automatically.
Menu path is: Financial accounting --> A/P A/R --> business transactions --> open item clearing --> automatic clearing

Here we set up criteria by account type, charts of accounts, by account ranges etc.

F.13 gives proposal of line items to get clear automatically. If you are ok with the proposal then it will clear all the line items.

Down payment F-48

2012-07-27T10:58:00.004-04:00

In SAP FICO system, we select special G/L indicator. It will select different G/L account for special G/L.
To display dows payment line item, we go in the same T code FBL1n and select special G/L indicator. Here we can see down payment line item with A.
While clearing, select special G/L indicator A to display it.

Clearing

2012-07-26T20:10:00.000-04:00

Line items need to get cleared once it gets posted. For example, if we pay to any vendor through F-53 in SAP FICO system, it stays uncleared. In SAP we can clear it via three ways.

Manual clearing

Clearing with posting

Automatic clearing

Incoming Payment F-28

2012-07-26T20:00:00.004-04:00

In SAP system, Incoming screen is almost same as outgoing payment.
Here we gives bank account through which we receive payment, Customer number and customer account D.
All other concepts are similar as Outgoing payment.

Outgoing Payment to Vendor

2012-07-26T19:20:00.002-04:00

Outgoing payment have following categories:

Partial Payment
Residual Payment
Charge of the difference/ Adjustment posting
Clearing line items
Discount adjustment

Charge of the difference in Vendor Payment/ Adjustment

2012-07-26T19:04:00.001-04:00

Charge of the difference in SAP FICO, used to pay partially when we are not going to pay the rest.

For example, we want to pay $3700 for $4000 line item invoice. We are not paying $300 as we got goods for just just $3700 ( or goods cost of $300 are damaged). Here we do not use Partial payment or Residual posting.

For this scenario we use Charge of difference. Hit the charge of account tab and in next screen enter credit to (Posting key 50) the appropriate G/L Account.

Difference between partial and residual payment

2012-07-26T16:32:00.002-04:00

In the case of Partial payment, SAP system will keep all the partial payments and the invoices as OPEN- however they are linked through a field called "Invoice Reference". By sorting on invoice referencing you will know at any point of time all the payments, invoices and other line items against that invoice references.

If you do the partial payment through "Residual payment" tab, SAP system will CLEAR the original invoice for the full amount and it creates a new line item for the remaining amount yet to be paid. It is the open item.

Lockbox

2012-07-26T15:16:00.004-04:00

Basic Steps in Configuring the Lockbox

1. Maintain Control Parameters -OBAY

2. Maintain Posting Data - OBAX

3. Create Lockbox Addresses for House Banks - OB10 & FI12

Steps in processing of the Lockbox files

1. Test Data Generation for the Lockbox Program - RFEBLBT2 and RFEBLBT3.

2. Importing of the Lockbox file - FLB2

3. Display the documents posted -

4. Post Processing - FLB1

Manual Clearing Vendor open line items F-44

2012-07-26T13:14:00.001-04:00

In SAP FICO, F-53 kept the line items open even if it got paid. How to clear them? Through F-44.
Here give the vendor account number whom we want to clear line items. Process open items will redirect to the new screen. Select which line items to be cleared, simulate and save. It will clear the line items and gives a document number. Upon displaying document it shows a document with no line items but just header data.
It is an important certification question that only clearing document display have just header data and no line items.
All the financial accounting entries saved in tables BKPF and BSEG for header data and line item data respectively. So for most of the documents there is a link between these two tables, but for clearing document there is an entry in BKPF only.