ISYS 4213 Exam 1
Revenue
- Sales - Other
Liabilities:
- Short term: payables - Long term: loans
Processes
- recording of value flows ($$) as a result of other processes and transactions
Equity:
- retained earnings - shareholder's equity
Income Statement:
A financial statement showing the revenue and expenses for a fiscal period.
Asset Accounting
Acquisition, depreciation, retirement
Debits
Assets & Expenses + Revenue & Liabilities -
Product Line
Client Company Code Company Code GBI US GBI Germany Business Area Business Area Bicycles Bicycles Business Area Business Area Accessories Accessories
Geographic Region
Client Company Code Company Code GBI US GBI Germany Business Area Business Area GBI North GBI Europe America
Borrow Money:
Debit: Bank Account/Credit Credit: Notes Payable
General Ledger Accounting
G/L postings for rent, utilities, wages, etc.
Income Statement Equation
Revenue - Expenses = Net Income
Invoice
a request for payment for materials shipped
Packing List
accompanies the shipment sent by the vendor
Material Group
includes materials with similar characteristics
Trading Goods
like raw materials, are purchased from a vendor and are resold to customers
CO Documents
record the financial impact of process steps internally
Accounts
represent an organization's income, expenses, assets, and liabilities
Application Layer
what the application allows you to do
Data Layer
where the application stores your work
Procurement Process
"buy"; all the activities involved in buying or acquiring the materials used by the organization
Lifecycle and Data Management Process
"design"; supports the design and development of products from the initial product idea stage through discontinuation of the product
Production Process
"make"; involves the actual creation of the products within the organization; concerned with acquiring materials intentionally vs. procurement, which is externally
Human Capital Management Process
"people"; focus on the people within the organization and include functions such as recruiting, hiring, training, and benefits management
Material Planning Process
"plan"; uses historical data and sales forecasts to plan which materials will be procured and produced and in what quantities
Project Management Process
"projects"; used to plan and execute large projects, such as the construction of a new factory or the production of complex products such as airplanes
Fulfillment Process
"sell"; consists of all the steps involved in selling and delivering the products to the organization's customers
Asset Management and Customer Services Process
"service"; are used to maintain internal assets such as machinery and to deliver after - sales customer service such as repairs
Inventory and Warehouse Management Process
"store"; used to store and track materials
Posting Keys
- Account type for posting the document item - Whether the document item is posted as a debit or a credit - Field status of the additional data
Expenses
- COGS - Payroll - Utilities - Taxes
What goes into Stockholder's Equity?
- Capital Stock - Retained Earnings
Asset Retirement
- Concerned with the disposal or retirement of an asset after its useful life - Retirement may be: + Revenue generating (sold) + Non-revenue generating (scrapped)
Group COA
- Contains group accounts that multiple companies within an enterprise use to consolidate their financial reporting
What goes into Retained Earnings?
- Dividends - Revenues - Expenses
Company Code
- Financial statements are generally prepared at the company code level.
General Ledger Acccounts
- G/L accounts are master data - recording of all accounting-relevant business transactions occurs in a G/L account - data in the general ledger accounts are segmented by organizational level: + Chart of account segment + Company code segment + General ledger = COA data Company code data - balance sheet accounts, income statement accounts, reconciliation accounts (Accounts Receivable, accounts payable, assets)
Business Area
- Internal division of an enterprise that are used to define areas of responsibility or to meet the external reporting requirements of an enterprise segment. - (generate financial statements). - A business area is normally based on either the enterprise's product line or its geographic division.
Standard toolbar
- Located above the ribbon; provides convenient, one-click access to frequently used commands - Icons in the standard toolbar are available on all screens - Icons that you cannot use in the current application are grayed out. - Features 5 important icons: (check mark) = Corresponds to the Enter key and confirms your entries (floppy disk) = Saves your entries on the current screen/transaction (green circle w/ back arrows) = Corresponds to the Escape key and takes you to the previous screen (orange circle w/ up arrows) = Exits the current transactions (red circle w/ X) = Cancels the transaction (in case of system problems)
Cost Center
- Master data in controlling - Location where costs are incurred - Department, individuals, special projects - Cost bucket used to accumulate costs - Accumulated costs are then "charged" to other cost centers - CO process
Client
- SAP systems are client systems - With the client concept several separate companies can be managed in one system at the same time - Clients are the highest organizational level in the system - Each client can represent a group of companies, a company, or a firm (regardless of the size of the organization) - Different clients are identified by their client numbers - A client is therefore a self-contained unit with separate master records and its own set of tables
Business scenario
- a group of related business transactions belonging to a particular organizational area that fulfill a related purpose in the company - for example preparation of the balance sheet, personnel administration, purchasing, service, or production.
Transaction code
- a transaction code is assigned to each transaction (not each screen) in the SAP system - a transaction code has more hints on displaying and finding these codes and other navigation options. - the command field in which you enter transaction codes can be found in the top-left corner. Click the small arrow symbol to display/hide it. - the quickest way to run a transaction in the SAP system is to enter the transaction code - every transaction has a code, which generally has four characters - Extras --> Settings --> Display Technical Names - You may combine the /n and /o with the transaction codes
Posting Keys
- a two-digit code that determines how a line item is posted
Transaction
- an application program that executes business transactions in the system, such as create sales order or post incoming payments.
Chart of Accounts (COA)
- an ordered listing of accounts that comprise a company's general ledger
Organizational Levels
- associated with financial accounting are client, company code, and business area.
Current Assets:
- cash/bank - receivables - inventory - prepaid expenses
Operative COA
- contains the operational accounts that are used to record the financial impact of the organization's day-to-day transactions - the accounts in the operative COA are mapped to alternate accounts
Master data
- data stored in the system over a long period of time for business processes (core data) - represent entities associated with various processes - remember that the goal of financial accounting is to record the financial impact of business activities - chart of accounts, general ledger accounts, and subsidiary ledger accounts are all types of master data. - examples are customer, material, and supplier.
/nMM03
- exits the current session and calls transaction Display Material
/n /i /o
- exits the current transaction - closes the current session - opens a new session
Control Parameters
- influence what happens to the session when you call a transaction - /n /i /o
Fixed (long-term):
- land - building - automobiles
/oMM03
- opens a new session and calls transaction Display Material
Organizational Unit
- organizational grouping of areas of the company that belong together for legal or other business reasons. - examples of organizational units are company, sales office, and plant.
Client
- the highest organizational level in the system; it represents an enterprise that consists of multiple companies - therefore, even the largest enterprise can have only a single client - the various companies within an enterprise are represented by a company code.
Transaction Data
- transaction-specific data that is short-lived and assigned to certain master data, for example a customer. - transaction data created when executing transactions is stored as documents. - examples of documents are sales order, purchase order, material document, and posting document.
Country-specific (COA)
- which are used for special country-specific reporting requirements.
Three types of Chart Accounts
1. Operative COA 2. Country-specific COA 3. Group COA
Credits
Assets & Expenses - Revenue & Liabilities +
Accounting Equation
Assets = Liabilities + Owner's Equity
Accounts Payable Payment
Debit: Accounts Payable Credit: Cash
Accounts Receivable Accounting Credit Sale
Debit: Accounts Receivable Credit: Sales Revenue Debit: Cost of Goods Sold Credit: Merchandise Inventory
Investment in a Company
Debit: Bank account Credit: Common stock
Accounts Receivable Accounting- Payment from customer
Debit: Cash Credit: Accounts Receivable
Asset Depreciation
Debit: Depreciation Expense Credit: Accumulated Depreciation
Payment of Debt
Debit: Notes Payable Credit: Bank account
Purchase of Supplies w/ Cash
Debit: Supplies expense Credit: Bank account
Payments: Rent, Utilities, Wages, etc.
Debit: Wages Expense Credit: Cash
Management Accounting Process
Focus: Internal Purpose: managing the firm in regard to costs and revenues Content: Defined by management needs
Financial Accounting Process
Focus: external Purpose: - legal reporting (financial systems) - tracking financial impact of processes - communicate with investors Content: Defined by laws and regulations - financial accounting is the "heart" of the system because it must accurately reflect the financial status of the firm at any given point in time.
Accounts Receivable Accounting
Part of the fulfillment process
Accounts Payable Accounting
Part of the procurement process
Business Process
a set of tasks or activities that produce desired outcomes; every process is triggered by some event; specific steps in the process are completed in different functional areas
Flexible Analysis
allows users to define the content and format of the analysis; combine available characteristics and key figures as needed to create new key figures
SAP NetWeaver
an application platform that contains the sort of capabilities needed to integrate SAP Systems with non-SAP Systems; SAP Business suite runs on it
Plant
an organizational element that performs multiple functions and is relevant to several processes; factory, warehouse, regional DC, service enter, office; a company code can contain multiple plants, but a plant can only belong to one company code
Accounts Payable
associated with the procurement process; used to track money that is owed to vendors - credit side
Information Structures
capture and store specified transaction data in an aggregated and summarized form that enables users to analyze data as needed
Application Suite
collection of the inter-company systems and the underlying intra-company ERP System
Sales Order
communicates data related to the order to other parts of the organization and tracks the progress of the order
Purchase Order
communicates the company's order to its vendor
Asset Accounting
concerned with tracking financial data related to assets
Supplier Relationship Management
connect a company's ERP system to those of its suppliers
Customer Relationship Management
connects a company's ERP systems to those of its customers
Finished Goods
created by the production process from other materials, such as raw materials and semifinished goods
Period Definition
data collected and aggregated for specific time periods ; quantitative aggregation of data
Selection Parameters
determine which data will be included for the selected documents
Online Lists
display lists of master data and documents that are generated during the execution of a process
Transaction Documents
documents created or utilized as the processes is being executed; ex. Purchase orders, packing lists, and invoices
Reporting
general term used to describe the ways that users can view and analyze both transaction and historical data to help them make decisions and complete their tasks; simple lists and analytics
Service Oriented Architecture
has technical capabilities that allow systems to connect with one another through standardized interfaces called Web Services
Product Lifecycle Management
helps companies administer the process of research, design, and product management
Client
highest organizational level in SAP ERP; represents an enterprise consisting of many companies or subsidiaries
Presentation Layer
how you interact with the software application (using menus, typing, and selecting)
Picking Due List
identifies all customer orders that must be prepared for delivery so that they can be shipped in a timely manner
Work Lists
identify tasks that are scheduled to be completed in a process
Line Items
lists each line item and data specific to line items
Cross-Functional
no single group or function is responsible for their execution
Architecture
of an E.S.; the technical structure of the software, the ways that users interact with the software, and the ways the software is physically managed on computer hardware
Functional Structure
organizations are divided into functions, or departments, each of which is responsible for a set of closely related activities; most common organizational structure; ex. accounting department sends and receives payments, warehouse receives and ships materials
Key Figures
performance measures, like quantities and counts, that are associated with the characteristics ; number of orders, quantities, order value; maintain only statistical summaries, like the total number of orders placed by a customer; aggregated transaction data --> qualitative
Settlement
periodically carried out to assign costs and revenues to appropriate parties
Standard Information Structures
predefined in the SAP ERP system; collect the data needed to generate the most commonly used reports
Online Transaction Processing
primary function is to execute process steps quickly and efficiently; designed to capture and store detailed transaction data; not used to generate sophisticated reports because it lacks the computing power to parse through and analyze the huge amounts of data; used only to generate simple lists and reports
General Ledger
process that records the impacts of various process steps on a company's financial position in the form of accounts
Standard Analysis
provides pre-defined analytics for data in standard information structures
Raw Materials
purchased from an external source and used in the production process
Material Documents
record materials movements; i.e. when materials are received from a vendor
FI Documents
record the financial impact of process steps externally; when a company receives payment from a customer
Transaction Data
reflect the consequences of executing process steps, or transactions; ex. Dates, quantities, prices, and payment and delivery terms A combination of organizational, master, and situational data
Company Code
represents a separate legal entity, the central organizational element in financial accounting; a client can have multiple company codes, but a company code must only belong to one client
Client Server Architecture
separates the three layers into three separate systems; presentation layer, application layer, data layer
Application Platforms
serve as a type of "enterprise operating system" for a company's E.S. landscape by allowing all various systems to communicate seamlessly with one another
Organizational Data
set to represent the structure of an enterprise; ex. Companies, subsidiaries, factories, warehouses, sales regions, etc.
Logistics Information Systems
support all of the logistics processes; acquiring, storing, creating, and distributing materials; purchasing IS, sales IS, inventory control IS, quality management IS, plant maintenance IS, and shop floor (production floor)
Financial Information Systems
supports reporting related to the general ledger, accounts receivable, and accounts payable
Enterprise Resource Planning
systems that are the world's largest and most complex; focus primarily on intra-company processes, or the operations that are performed within an organization, and they integrate functional and cross-functional business processes
Supply Chain Management
systems that connect a company to other companies that supply the materials it needs to make its products
Enterprise Systems
systems that support end-to-end processes and are essential to the efficient and effective execution and management of business processes
Project
temporary in nature and typically associated with large, complex activities
Scalability
the ability of hardware and software to support a greater number of users easily over time
Characteristics
the objects for which data are collected; typically organizational data and master data; an information structure can include up to nine characteristics
Business Intelligence
the overall capabilities a company uses to collect and analyze data from a variety of sources to better understand its operations and make better managerial decisions; SAP Business Warehouse
Header
top part of the document that includes data such as purchase order number, date, and payment terms that are relevant to all line items
Semifinished Goods
typically produced in-house from other materials and are used in production of a finished good
Online Analytic Processing
use information structures to provide analytic capabilities; detailed data analysis
Human Resources Information Systems
used to retrieve information about different HR components such as personnel, positions, and jobs ; Information Systems are part of the OLAP component of SAP ERP
Accounts Receivable
used to track money owed by customers - debit side
User Defined Information Structures
users define their own structures to meet specific reporting requirements
Silo Effect
when workers complete their tasks in their functional silos without regard to the consequences for the other components in the process