Accounting 3328 Exam 1(SAP material)

GBI structure for FI

(in order) -client -company code -chart of accounts -business area -credit control area

organizational unit structure

(in order) -client -company code -plant -sales organization -divison -storage location

structure of material management(MM)

(in order) -client -company code -plant -storage location

impact of invoice verification(J/E)

-Debit GR/IR -Credit Vendor -Credit A/P

impact of good receipt(J/E)

-Debit Inventory-Trading Goods -Credit GR/IR

impact of payment processing(J/E)

-Debit Vendor -Debit A/P -Credit Bank Account

When reviewing BS accounts you can see

-G/L account number -Account group(type/description tab) -account currency and if account without tax is allowed(control data tab) -what the bank account is sorted by -field status group(create/bank/interest tab)

When reviewing P/L accounts you can see

-G/L account number for the account needed -account group(type/description tab)

FI Master Data

-G/L accounts(IS, BLS, reconciliation accounts) -chart of accounts -customer and vendor master data(maintained in FI subsidiary ledgers through A/R for customers and A/P for vendors)

outcomes of invoice verification

-GL: vendor account,A/P, GR/IR -PO history -invoice doc added -material master: (if price is different and within tolerance, then moving average price is adjusted)

vendor master data categories:

-General data -Company code data -Purchasing org data

Elements in the FI items(detail) group

-account -description -posting key(debit or credit) -amount

Elements in the G/L account master data for company code segment

-account currency -tax related data -field status group -open line management -line item display -reconciliation account for account type

Elements in the G/L account master data for COA segment (client)

-account number -long text -short text -account group -balance sheet or income statement account

tasks of payment processing

-calculate payment amount(discounts) -post payment document(accounting department)

vendor master data looks at(views) the

-client level(address, vendor number, preferred communication) -company code data(reconciliation account, terms of payment, bank account) -purchasing organization data(purchasing currency, salesman's name, vendor partners)

Organizational data types in ERP systems

-company code -plant -storage location -distribution channel -purchase organization

creation & data for payment processing

-creation: manually or via automatic payment program -data: three-way match -payment method, account, items to pay

Elements in the FI header group

-document date -document type -document number -company code -posting data -currency -reference number

data needed for goods receipt

-documents: PO, delivery doc(packing list) -master data

Master data typically includes:

-general data(across company codes) -financial data(CC specific) -area-specific data(sales, purchasing, plant)

purchasing group(MM Organizational Structure)

-key that represents the buyer or group of buyers who are responsible for certain purchasing activities -channel of communication for vendors

outcome of goods receipt

-material documents -header -details(items) -updates moving average . price in MM file -Financial accounting docs -header -details(items)

Data needed to review BS accounts:

-need the company code(US##) and code for bank account(can search for in the COA)

What does ERP costs include

-new hardware required to run the system -consultant and business analyst fees -includes time required for implementation(disruption of business) -training costs(significant investment)

master data types in ERP systems

-person -material -customer -vendor -condition

purchasing information record contains data on..

-pricing and conditions -last purchase order -tolerance limits for deliveries -specific lead times -availability periods -vendor evaluation data

transaction data types in ERP system

-purchase order -invoice -quotation -sales order -transportation order

material master data looks at(views) the

-sales data -basic data -purchasing data -material planning data -forecasting data -storage data -quality data -controlling data -accounting data

business processes we focused on for GBI

-sell: fulfillment -buy: procurement -track: financial accounting

purchasing organization(MM Organizational structure)

-the buying activity for plant takes place at the purchasing -organization unit responsible for procuring service and materials -negotiates conditions of the purchase with the vendors

tasks of invoice verification

-three-way match(invoice, PO, receiving report)

data for invoice verification

-vendor invoice -purchase order -material document(GR)

task for good receipt

-verify materials receipt -create GR document

Transaction Data

Data that is relatively temporary - Stored at various stages of a business process(customer orders, purchase orders, production orders, customer payments)

J/E for investment in a company(outsider investment into your company)

Debit Bank Account Credit Common Stock

J/E for purchase of supplies with cash

Debit Supplies Expense Credit Bank Account

Chart of accounts(FI)

a classification scheme consisting of a group of general ledger(G/L) accounts -provides a framework for the recording of values to ensure an orderly rendering of accounting data -the G/L accounts it contains are used by one or more company codes

document flow

allows you to find the status of an order at any point in time(order status does this as well) -SAP revises the status at every time a change in a document takes place

client(MM Organizational structure)

an independent environment in the system

credit control ares(FI)

an organizational entity which grants and monitors a credit limit for customers -can include one or more company codes

storage location(MM Organizational structure)

an organizational unit allowing differentiation between the various stocks of a material in a plant

business area(FI)

an organizational unit that represents a separate area of operations or responsibilities within an organization and to which value changes recorded in FI can be allocated

Data needed to review a P/L account

company code and G/L account code needed(ex: code for supplies expense)

material master data

contains all the information a company needs to manage a material -stored in functional segments called views

vendor master data

contains all the necessary information needed to business within an external supplier -used and maintained primarily by the purchasing and accounting departments -every vendor MUST have a master record

documents

data sets that are generated if a business transaction was executed -a record of the business transaction -includes all relevant predefined information from the master data and organizational entities -ex: sales document, purchasing document, material document, accounting document

general data(vendor master):

data that is cross-company code(applies to all company codes in the same client)

purchasing org. data(vendor master)

data that is specific to the specified purchasing organization

company code data(vendor master)

data that is specific to the specifies company code

Cost of ERP?

depends on size and complexity of the software package, which is a function of firm size

goal of financial accounting(FI)

designed to collect the transactional data that provides a foundation for preparing the standard portfolio of reports

Accounts receivable sub-module(FI-AR)

information with resect to customers who purchase the enterprise's goods and services such as sales and payments made *CUSTOMER ACCOUNT* -important integration between SD and FI -Billings in SD generate Fi j/e for sales activity

Accounts Payable sub-module(FI-AP)

information with respect to vendors from whom the enterprise purchases goods and services such as purchases and payments made *VENDOR ACCOUNT* -important integration between MM and FI -purchase and goods receipt activities in MM generate FI journal entries

Enterprise system(ES)

integrates a number of business functions in a single information system(revenues, expenditures, production, HR, accounting, management) -improved the efficiency of operations(feedback) -improved effectiveness of management(analysis)

Enterprise Resource Planning(ERP)-software intended for ES

integrates all computing and data processing -centralized databases independent of applications and modules -data shared and useable by all areas as needed(and if authorized)

Master Data

long-term data that typically represent entities associated with various processes -Data that is relatively stable -Materials, Customers, Vendors

master data

longer term data that represent data sets mostly -ex: Sales and distribution: -customer master -material master -condition master

material master data is used by

most components within the SAP System(sales and distribution, materials management, production, plant maintenance, accounting/controlling, quality management)

plant(MM Organizational structure)

operating area or branch within a company -manufacturing, distribution, purchasing, or maintenance facility

transaction data

process related data that is short-lived and dedicated to certain master data -includes: -organizational level -master data -situational data -example: Customer order -organizational level: client, company code, sales organization -master data: customer master, material master -situational data: date, time, person, amount

J/E for purchase of supplies on credit(and payment)

purchase: Debit Supplies Expense Credit Payables-Misc payment: Debit Payables-Misc Credit Bank Account

Configurations

settings to define the business -fiscal year, chart of account, organizational structures -rarely changed after they go live

company code(MM Organizational structure)

smallest organization unit for which you can maintain a legal set of book

The general ledger shows...

the current balance of the account & individual transactions

Purchasing Information Record

the framework for purchase order(contains the relationship between a vendor and a material) -can be created manually or automatically -allows buyers to quickly determine which vendors have offered or supplied specific materials -serves as default information for purchase orders

posting key describes the

type of transaction (expense, credit memo, stock initial entry, etc)

materials management master data consists of..

vendor master data, material master data, purchasing info record, condition master data, and output master data