Overview of SAP FI-CO - 1

SAP FI-CO
Overview
Accounting Modules Overview
 The FI Module
- Accumulates accounting data related to
external reporting.
- All accounting data generated by all other modules must
ultimately be recorded within FI for financial reporting
purposes.
 The CO Module
- Accumulates accounting data related to internal reporting,
such as product costing, budgeting
and others.
Sub-Modules of FI & CO
FI – FINANCE
 GL - General Ledger
 AP - Accounts Payable
 AR - Accounts Receivable
 AA - Asset Accounting
 BA – Bank Accounting
CO - CONTROLLING
 CEA - Cost Element Accounting
 CCA - Cost Center Accounting
 IO - Internal Order Accounting
 PCA - Profit Center Accounting
 PC - Product costing
 CO-PA – Controlling -Profitability Analysis
SAP FI
General Ledger
General Ledger (FI-GL)
 GL Overview
Organizational structure
 Master Data
Chart of Accounts
Account Groups
General Ledger Master Record
 Sub Processes
Transaction Processing
Account Analysis / Reconciliation
Periodic Processing
Reporting
Org structure
 Company Code
• It is an independent accounting entity. A company code is assigned
to a chart of accounts.
• Each company code in A Group uses the G/L accounts from only
one chart of accounts for account validation. This is called the
operating chart of accounts.
• A chart of accounts can be used by multiple companies provided
they have the same basic account requirements.
General Ledger (FI-GL) – Master data
Chart of Accounts
COA  The Chart of Accounts

“ INT ” • Contains the definitions of
all G/L accounts in an
ordered form
• Each general ledger is set
up according to a Chart of
Accounts
• Many company codes may
use the same COA
Company Code Company Code
1000 A Ltd 2000 A1 Ltd
General Ledger (FI-GL) – Master Data
Account Group
 It combines the same type of GL accounts under one group
 It control the number ranges of the GL Master Records
 It controls the field status of General Ledger Master Records
 Useful in reporting to take report for a group of GL Accounts

Chart of Accounts Number Ranges
INT AA 120001 120299 Fixed Assets Accounts
INT CASH 110000 118999 Liquid Funds Accounts
INT EXP 400000 499999 Expense Accounts
INT G.BS 100000 399999 General Balance Sheet Accounts
INT MAT 100000 899999 Material Management Accounts
INT REV 800000 899999 Revenue Accounts
Account Groups
GL Account Master Record
General Ledger
Balance P&L
Balance P&L
TT TT TT TT TT
Chart of Acct number: 119430 TT TT TT TT TT
accounts Description: TT TT TT TT TT
segment Inventory – Finished goods
Bal. sheet acct: (Balance c/fwd)
Inc. statem. acct:
Company
code
• Currency • Item management
• Tax-related • Posting control... segment
General Ledger (FI-GL) – Business Process
Transaction Posting
SAP R/3 supports the following transactions:

 Journal (JV) Processing
• Document Principle
• Document Structure
 Foreign Currency documents

 Parked documents
 Posting with Reference
 Reversing / Canceling documents
Transaction Posting
Create G/L Create G/L Posting Post Manual

account posting Fast Entry Journal
Holding an incomplete
document
Simulate No
(Enough Info
to Complete Posting?)
Create/Display a Parked
Document
Yes
Posted Entry Post/Release a

Parked Document
Transaction Posting – Accounting Document
Document No: 123456

Header Date: 6/5/1000x
Company Code: 5200
Currency: US$ ,,,,
Debit Credit
1,000,000
800,000 Line items
200,000
Total: 1,000,000 1,000,000
 Each document consists of two segments: header and line items.

 After posting it receives a unique document number.
 A Grp. will use the standard document types of SAP. The system
assigns the document numbers automatically.
Transaction Posting – Number Ranges
9999999999
02
9000000000
External numbering
8000000000
Current numbers
7000000000
01
6000000000 Internal numbering
defined until fiscal
5000000000
year in the future
4000000000
Current numbers
3000000000 00
2000000000 Internal
numbering
1000000000 defined per fiscal
0000000000 year
1998 1999 2000 2001...
Transaction Posting – Document Header
Dates:
Document Date,
Posting Date,
Translation Date,
Entry Date (automatic),
Period.
Document Type
Company Code
Currency
Additional information:
Reference,
Short text.
Transaction Posting – Line Item
 During document entry, certain fields need to be

filled in. For example, when posting expenses, a
cost center and tax information is usually
required.
 Tax fields are only ready for entry if the general
ledger account is set up as tax-relevant.
Transaction Posting – Posting a Document
Document entered
correctly
Posting functions
 You can now:

 Simulate your document - press the “Simulate” button:
 Or post it immediately - press “Save” button (F11)
Transaction Posting – Foreign Currency
Local currency - Functional currency of the company code
Document currency - Currency of the document
Group currency - Alternative currency for group reporting
 For every Company Code there’s defined a company code

currency, ie, every company code has a “local” currency.
 Every document, posted in different currency than company
code currency, is processed as a foreign currency document.
 Accounting documents can be posted in a foreign currency
 The foreign currency is converted to local currency and both are
stored in the document along with the exchange rate
Transaction Posting – Parking & Holding a Document
 After entering the document it is possible:

• To post it immediately
• To “park” the document
• To hold the document
Transaction Posting – Reverse a GL Document
Document entered incorrectly

Balance sheet
Assets
Liabilities Document corrected by Reversal:

Reverse with a standard
Shared equity reversal posting
Reverse with a negative
posting
Document re-entered correctly

Transaction Posting – Reference Document
Document # 1 (Reference Document):
Header: 01/03/2003 Comp. Code: 5200
Line Items:
PK Account Amount
40 123000 5000
50 345560 2000
50 907902 3000
Document # 2:
Line Items:
PK Account Amount
40 123000 5000
50 345560 2000
50 907902 3000
 Reference documents are either accounting documents or

sample documents that are used as a reference to post an
accounting document.
Account Analysis & Reconciliation

Display G/L account balance
Display G/L line items
G/L account analysis functions
Clear outstanding items on G/L account
Account Analysis & Reconciliation – Account Balance
Account balance
 Account Balances display
• Opening Balance (Carry forward Balance from previous year)
• Totals of all transactions for each posting period broken down for
• Debits and Credits
 From these figures the system calculates the following for the
account balance function
• Balance per posting period
• Accumulated balance for the account
Account Analysis & Reconciliation – Line Items
Line items
Line items can be displayed on G/L accounts which are

managed with Line Item display
• Line items are displayed on-line
• Line Items can be totaled and sorted according to user requirements
• Additional fields can be added to the Line Item display screen
• Alternative custom defined Line Layouts can be defined
Account Analysis & Reconciliation – Analysis Functions
 Functions supporting
account analysis are
grouped on the
“Application toolbar”
Account Analysis & Reconciliation – Open item Clearing
1 2
3
Open You can only
items clear open items
represent for accounts that
transaction are open item
s that are managed.
incomplete
.
The balance of an open item managed

accounts are the reconciliation items.
Account Analysis & Reconciliation –Reversal of Cleared
Display cleared items
Reversal of clearing
 Reversal of documents that were cleared before is not possible,

 First the clearing operation must be reset.
Reporting
 SAP system offers number of reports that help analyzing entered

business transactions:
• Financial Statement Version (Balance Sheet and P&L)
• Account Balances
• Line Items
• Documents
• Master Data
 Report can be:
• Printed out directly to the printer,
• Saved as a local file (txt format, Excel file etc.)
• Sent by e-mail
Reporting – Reporting Requirement
Balance Trail
Sheet Balance FI
Income
External Reporting Statement
CO
Internal Reporting
Cost
Product Center Profit
Cost Center
Reporting – Financial Statement Version
Financial Statement Versions are set up to represent the balance

sheet and P+L statement according to your own specific requirements
• Can be created for different legal entities
• Can be created in different Languages
• Are executed in desired currency i.e. Local, Group
Using the Financial Statement you specify

• Line items to be included in the Financial Statement
• Sequence the line items are displayed
• The COA and the accounts that are displayed in the Financial Statement
• The totals that are presented on the Financial Statement
Balance Income
Sheet Statement
Reporting – Report Execution
Report Execution
Selection of Report Parameters
Variant Selection Dynamic selection
 A report can be executed directly or scheduled in

the background
Reporting – Report Variant
2 2) Press “Save” button
1) Enter the required

1 criteria on the selection
screen
3) Enter the variant’s

3 name
SAP FI
ACCOUNTS PAYABLE
Accounts Payable (FI-AP)
 AP Overview
 Sub Processes
Master Data
Invoice Processing
Payments / Disbursements
Periodic Processing
Reporting
Accounts Payable – Master Data
 Maintenance
• Creation 3 Levels
• General Data (name, address)

• Company Data (reconciliation acct, payment term)
• Purchasing Data (PO currency, incoterms)
• Change
• Block
• Delete
 Account Groups
Accounts Payable – Master Data
Client  General data
230 • Address
• Control data Vendor
• Payment Transactions Master
 Company Code data

Company • Account Management
• Payment Transactions
Code
• Correspondence
9100 A
Ltd.
 Purchasing Organization
• Purchasing Data
• Partner functions
Purchasing
Organization:
9100 A Purch.Org.
Accounts Payable – Invoice Processing
Business Transactions included in Process:
 Sundry
• Invoice
• Credit Memo
• Down Payment (Special G/L)
• Foreign Currency
• Cancel/Reverse Document
• Inter-company (Idoc’s)
Accounts Payable – Invoice
Screen Tab
 All required data on one screen,

 A user can use “tabs” to switch between sub-screens
Accounts Payable – Invoice
OR
Document
Simulation
Accounts Payable – Parked doc. vs. Held doc.
 Park document:
• Assigned number (according to
document type)
• Available for many users (depending on
authorizations in the system)
 Held document:
• Internal document number (defined by
the user)
• Available only for the user who created it.
Accounts Payable – Special GL Transactions
Special GL
Indicator
Vendors’
reconciliation Accounts defined
accounts for Special GL
Transactions
 Special GL Transactions allow the user to post the document to an alternative GL account
instead of “normal” Vendor reconciliation account,
 They are defined in Customizing for Vendor and Customer reconciliation accounts,
 Customer / Vendor account balances are not affected.
Accounts Payable – Posting a Down Payment
Vendor GL Down
Account Bank
Payments
Account
1 1 10
10
10
 A Ltd pays the vendor a down-payment: $10.000,-

 The down payment is booked on Vendor account with a Special GL indicator
 The amount of $10.000,- is shown on Vendor account, but on different GL Account, instead
of Vendor reconciliation account
Accounts Payable – Procurement Cycle
Purchase
requisition
8 1
Payment Determination
Invoice processing of reqmts.
Purchase Quotation
order
10 10
Invoice
7
20 2 20
Source
verification determination
Goods 6 3 Vendor
receipt selection
Purchase
order
10
PO20
PO 5 4 processing
monitoring
Accounts Payable – Impact on Financial Accounting
Cost Element Object GR/IR Acc. Payable
1. 2. 1. 3. 2.
1. Goods received. Bank Clearing Account Bank
4. 3. 4.
2. Invoice received.
3. Vendor paid.
4. Bank account credited/charged

Accounts Payable – Parking
 You can park or hold an invoice before posting it. When you save the
document, the system creates an unposted document that only contains the
data on the initial screen such as the gross invoice amount, tax amount,
terms of payment and allocation, but no item data.
 Later you can use the “Invoice overview” function to change and post the
parked / held document
Accounts Payable – Credit Memo
Purchase
order 123
Credit Memo
100 pcs 10 INR/pc
80 pcs 800 INR 30 pcs 300 INR
Goods Receipt: 50 pcs
Purchase
order 123 Subsequent
Credit
100 pcs 10 INR/pc
50 pcs 800 INR 50 pcs 300 INR
Accounts Payable – Payment & Disbursements

 Manual payments
 Automatic Payment Run
 Outgoing Payments
• Reports
Accounts Payable – Manual Payment
Open items
 This transaction is being used to post vendor outgoing payments that have
not been cleared by the automatic payment program,
 All data on one screen, no posting keys required.
Accounts Payable – Automatic Payment Program
Invoices, Credit
Memos,
Payment Automatic Create Pay. Run &
Yes Schedule
Requests Payment Run maintain
Proposal
Parameters
No
Post Outgoing Proposal
Payment With List
Printout
Checks /
Transfer Edit Proposal
Approval
Send transfers Propos

to Banks and/or al
checks to Approv
Vendors al
Schedule
Payment
Print Payment
Medium
Accounts Payable – APP Cycle
Invoices or
payment
requests
are
Payment entered
Open invoices are
documents
analysed
are printed
Invoices are
Invoices are paid proposed for
payment
Payments are Payments are

approved modified
Accounts Payable –Steps for APP
Maintain Parameters
Parameters are entered
Schedule Proposal
Payment proposals are created
Edit Proposal
Payment proposals are edited
Schedule Payments
Payment run is carried out
Schedule Printing
Accounts Payable – Account Analysis & Reconciliation

Accounts Balance
•Line Item display
Account Clearing
•Internal Post with Clearing
•Clearing with Customer
Accounts Payable – Display Account Balance
 Account balance displays totals of transactions, per month as well as

cumulative values
 The report may be printed or saved as a local file
Accounts Payable – Line Item Display
 “Line items” report displays particular transactions,

 It it possible to change the documents directly from this screen,
 The report may be printed or saved as a local file
Accounts Payable – Open Item Clearing
2 1
Open item account January
Februar
1 2 3 4 5 6 7 1 2 3 4 5 6 7
y
8 9 1011121314 2,000 5,000 8 9 1011121314
16171819202122 16171819202122
23242526272829
3,000 23242526272829
293031 293031
Invoice Goods receipt
Can be cleared
3
Clearing an Post with
account clearing
Accounts Payable – Periodic Processing

LIV invoice variances
•Invoice differences
•Blocked invoices
•Tolerances (not configured)
GR/IR Account Maintenance
Vendor Correspondence
•Standard Letters
•Balance Confirmation
Accounts Payable – Invoice Variances
Quantity
Price
Goods Vendor Invoice
Receipt Purchase order
price quantity
Date
 The system carries out the following checks for each invoice item:
• Quantity variance
• Price variance
• Purchase order price quantity variance
• Date variance
Accounts Payable – GR/IR Account Movements
Purchase Invoice
order Goods
Receipt
97 pcs
100 pcs @ 10.00 USD
100 pcs
@ 10.00 USD
GR / IR Account
Goods Receipt Invoice
Maintenance
Stock account 1,000 + 30 -

GR / IR account 1,000 - 970 + 30 +
Vendor Account 970 -
Accounts Payable – Release the Blocked Invoices
 An invoice is blocked for payment when you post it, because the Payment
block indicator is selected in the vendor line item of the invoice document.
Financial Accounting is then unable to pay the invoice.
 A blocked invoice can be released for payment in a separate step. This
deletes the payment block.
 An invoice is also blocked when the variance between goods receipt and
an invoice exceeds tolerance limits.
 The invoice will not be blocked if the variance is within certain tolerance
limits.
Accounts Payable – Requesting Correspondence
Correspondence request
Mass request Individual request Individual request

selection program manual automatic
Periodic account statement
Internal documents
Standard letter
Open item list

Bill of exchange
Account statement settlement
Individual
correspondence Payment notice
Corre-
spond-
ence
requests
Trigger report
Print programs
Accounts Payable – Balance Confirmation
Letter to the
Vendor Vendor Reply to
the Sender
200.00-
Open items
354.00
126.20-
…….
 This function enables you to create and print letters to the Vendors for
checking the open items.
 System prints also a necessary reply form, so a Vendor can confirm the
outstanding items or specify the differences.
Accounts Payable – Output Type
Printer
Email
Fax
Accounts Payable – Reporting

Standard Reports
•Open Items List
•Cleared Items List
•Account List
•Account Balance List
•Vendor Evaluations
Customised Reports
•Aged Open Items List
Accounts Payable – Accessing Reports
1
SAP Menu
Transaction SA38
 A user can run the required report in two ways:

• Directly from “The Report Tree”,
• Using transaction SA38, provided that he/she knows the report’s
name
Accounts Payable – Evaluations
Evaluation Views
Variable
- Corporate group
- Company code
Currency analysis
Due date analysis
- Business Area
Overdue items
Evaluation types
END OF ACCOUNTS PAYABLE

SAP FI
ACCOUNTS RECEIVABLES
Accounts Receivable (FI-AR)
 AR Overview
 Sub Processes
Master Data
Credit Management
Invoice Processing
Cash Receipting / Payments
Periodic Processing
Reporting
Accounts Receivable – Over View
GENERAL LEDGER
ACCOUNTS RECEIVABLES
SALES & DISTRIBUTION

Accounts Receivable – Master Data
 Maintenance
• Creation 3 Levels
• General Data (name, address)

• Company Data (reconciliation acct, payment term)
• Sales Data (SO currency, incoterms)
• Change
• Block
• Delete
 Account Groups
Accounts Receivable – Master Data Structure
 General data
Client • Address
230 • Control data
• Marketing
• Export data Customer
• Contact persons
Master
 Company Code data
• Account Management
Company • Payment Transactions
Code • Correspondence
• Insurance
1000
A Ltd
 Sales Area data
• Sales
• Shipping
• Billing document
• Partner functions
Sales Organization
1000
Accounts Receivable – Credit Management
 Credit Management can minimize the credit risk by defining

specific credit limits for your customers
 This is particularly useful if your customers are in financially
unstable industries or companies, or if you conduct business
with countries that are politically unstable
 You can specify your own automatic credit checks based on a
variety of criteria
 You can also specify at which critical points in the sales and
distribution cycle (for example, order entry, delivery, goods
issue) the system carries out these checks
 Credit Control Area
• A hierarchical unit for managing customer credit limits
• A credit control area can include one or more company codes
• If a customer is created in several company codes that are assigned to different
credit control areas, a separate credit limit is managed for the customer in each
of the different credit control areas
9400 – Latin 9100 - Asia 9200 - 9300 – Middle

America Pacific America East
 Credit Exposure
• The customer's credit exposure may not exceed their credit limit
• The credit exposure is the total combined value of the following documents:
 Open orders
 Open deliveries
 Open billing documents
 Open items (accounts receivable)
 Executing automatic credit check in sales order processing
• Non-critical fields
Not re-executed for changes made to these fields e.g. Texts
• Critical fields:
 Re-executed for changes made to critical fields e.g. Payment terms, Price,
quantity
Accounts Receivable – Credit Management Reports
Program Function
RFDKLI10 Customers with missing credit data
This report checks the data for the credit limit for completeness, and produces the corresponding error lists . These can be used to re-
maintain the corresponding definitions manually, or per Batch Input .
RFDKLI20 Reorganization of credit limit for customers
This report enables you to reorganize the credit limit information in the control areas .
RFDKLI30 Short overview credit limit
The report lists the central and control area-related data per customer.
RFDKLI40 Overview credit limit
The report provides you with an extensive overview of the customer’s credit situation.
RFDKLI41 Credit master sheet
The credit master sheet enables you to display and print out the customer master data for a single account, which is needed for the
area of credit management.
RFDKLI42 Early warning list
The early warning list enables you to display and print out customers in credit management, who are viewed as critical customers in the
area of credit checks in SD.
RFDKLI43 Master data list
The master data list enables you to display and print out customers ’ credit cards. In particular, you can display information not
contained in the standard system, for example, user-defined fields or external data, which you have created with specific add
RFDKLI50 Mass change credit limit data
This report allows quick mass change for master data in credit management .
RFDKLIAB Change display, credit management
With this report, you can display changes for credit management master data for all accounts .
RVKRED06 Checking blocked credit documents
The report checks all blocked documents from credit view. The report is started in the background, and should run after the incoming
payments programs.
RVKRED77 Reorganization credit data SD
The report enables you to reorganize open credit, delivery and billing document values . It is used, for example, when updating errors
occur.
RVKRED08 Checking sales documents which reach the credit horizon
The report checks all sales documents, which reach the dynamic credit check horizon, as new. The report runs periodically, and should
run at the start of a period. The period for the ‘date of the next credit check’ is proposed from the current date, with
RVKRED09 Checking the credit documents from credit view
Released documents are only checked if the validity period for the release has run out (number days).
RVKRED88 Simulation reorganization credit data SD
Accounts Receivable – Invoice Processing
 Sundry
• Invoice
• Credit/Debit Notes
• Down Payment
• Bill of Exchange Receivable
 Parked Documents
 Foreign Currency
 SD Billing
 Inter-company postings
Accounts Receivable – Effect of creating a Billing Doc
Sales Order Inventory

Processing Sourcing
Invoice
Invoice
Customer Delivery &

Payment Billing Shipping
processing
 Updating the document flow

 Creating documents in Financial Accounting
 Updating the billing status
 Updating the Sales Information System
 Updating the credit account
 Forwarding data to Profitability Analysis
 Printed document / EDI to customer
Accounts Receivable – Period End Activities

Dunning
Accounts Receivable –Dunning
Customer Open Update
Items
Dunning
Program
Print Dunning
Notices
Customer Master
Record
Update
Accounts Receivable – Dunning Levels
Dunning Levels
 A Ltd dunning procedure has three dunning levels.

 The higher the dunning level the more insistent is the dunning text.
 Each item to be dunned gets a dunning level according to its days in
arrears.
 From one dunning run to another the dunning level can only be raised by
one, i.e. no dunning level can be skipped.
Accounts Receivable – Print Dunning Notices 3
1 2 Print Notices
Schedule Check Spool Request(s)
printout
 The print program for the dunning procedure:

• generates dunning notices,
• enters the dun date and the dunning level into the dunned items (e.g.
invoices) and customer master records.
 If one-time customers are dunned, the dunning data is only updated in the
items.
 Dunning notices are printed in a sequence defined by sort criteria.
SAP FI
ASSET ACCOUNTING
(OR)
FIXED ASSETS
Asset Accounting (FI-AA)
Asset Accounting
AA Overview
Asset Accounting as a Sub-ledger
Asset Class
Chart of Depreciation
Master Data
Create/Change Asset Master Record
Acquisitions
Settlement of an Asset Under Construction (AUC)
Retirement
Depreciation
Period / Year End closing & Reporting
Asset Accounting – AA as a Sub Ledger
Asset Accounting is a subsidiary ledger of Financial
Accounting. The appropriate General Ledger accounts are
updated each time you post.
General Ledger
Assets Liabilities
1000 1000
Asset account Vendor

1000 1000
Asset Accounting–Account Determination &Asset Class
The Account Determination is used to :
sub-classify the General ledger accounts
and
The asset class is used to:
group master records by specific criteria.
Asset Accounting– FI & AA Integration
Balance
A L
sheet
GL through
Account
Determination
Buildings Vehicles Assets under Fixtures and

construction fittings
Asset
classes
Asset
master
records
Asset Accounting– Functions of Asset Class
Asset Class
Account Screen Number Special Default Selection

Determination layout assignment features values features
Asset class Acct. determination

Bal. sheet items
Assets Liabilities
Create
asset Asset portfolio
Assets 02200000
Real estate
Lathe
Machinery
...
Fixtures+fit. 02115000
...
1 Finance. assets Drill
press
...
Asset Accounting – Definition of Asset class
Asset classes
Account allocation
Master data Screen layout rule
Client level
section Number range
Default values
Selection of
Section for depreciation areas
Chart of depreciation
valuation data
level
Default values
Asset Accounting– Asset Classes in Chart of Dep
Class Machines
Chart of Germany USA

depreciation
Areas Book dep. Tax dep. Group Book dep. Group ACRS
... ...
DG30 SNFG LINR LINB LINR ....
Depreciation ....
key decl-bal. invest. str.-line str.-line str.-line
3X support ....
Proposed 10/00 10/00 8/00 _ 8/00 ....
useful life
Minimum _ _ _ 8/00 _ _
useful life
Maximum _ _ _ 12/00 _ _
useful life
Asset Accounting – Asset Under Construction
Class: Assets u. const. Transaction type groups
Extras 15 Down payment

16 Down payment carried forward
from previous years
 AuC managed as total

AuC status  line item settlement
 capital investment measure
depreciation deprec.
areas key
depreciation is not calculated in
Book dep. 0000
depreciation areas intended for the
Tax dep. 0000 balance sheet
Cost-acc. LINA
negative values allowed

Asset Accounting– AUC without Line item Settlement
Assets under construction in this asset class are managed without
the option of line-item final settlement to receiver assets or cost
centers. As a result:
Only complete transfers or simple partial transfers are possible (in
other words, you can only transfer either prior-year acquisitions or
current-year acquisitions in one given posting transaction).
You can only transfer to one target asset per posting transaction.
You have to enter the amount of the transfer manually.
There is no connection to the original asset under construction in
the capitalized asset. Therefore, there is no exact proof of origin for
the original postings.
Asset Accounting – AUC with Line item settlement
Assets under construction in this asset class are managed with the
option for final line item settlement to receiving assets or cost
centers. As a result:
On the capitalized asset, you can then see the relationship
between the capitalized asset and original postings to the asset
under construction - you can accurately identify the origin of the
postings.
AUC’s can be settled to multiple final assets / asset classes
Asset Accounting – AUC from Investment Measure
Assets under construction in this asset class to be created solely

for capital investment measures (internal orders or projects).
The assets in this class can not then be directly created and
posted in Asset Accounting. The assets can only be processed by
means of an order or WBS element, to which they are assigned.
Asset Accounting – Summary of AUC
Assets under construction require their own asset class.
Choosing the depreciation key ‘0000’ ensures that depreciation is
not calculated for the asset under construction in depreciation areas
that are posted to the balance sheet.
Assets under construction have to be shown separately in the
balance sheet.
The component IM (Investment Management) is available for
managing more extensive asset investments from a controlling-
oriented perspective.
There are three asset classes for Assets Under Construction
configured. These are:
Asset under Construction
Asset under Construction with Line item settlement
Asset under Construction from Investment measure
Asset Accounting – Chart of Depreciation
Chart of
depreciation
Depreciation Book
area 01 deprec.
Depreciation Tax
area 02 deprec.
Depreciation Special
area 03 reserves
Depreciation Cost-acc.
area 20 deprec.
Depreciation Group
area 30 deprec.
Asset Accounting – Depreciation Area
You will generally need values for fixed assets for

various business and legal purposes (for example, for
book depreciation, cost-accounting depreciation and so
on). In the R/3 FI-AA system, it is therefore possible to
manage values in parallel in as many depreciation
areas as you want.
Asset Accounting – Master Data
Create
asset
using asset class using a reference
taking over the default 'copying' an

values from the asset class existing asset
Asset Accounting – Master Data
When you create the asset master record, you have

two options:
Use the asset class, to which the asset will belong,
to provide default values. The asset class then
supplies the most important control parameters in the
asset master record.
Use an existing asset as a reference for creating
the new asset master record.
Some information in the asset master record can be
managed as time-dependent data. This is of particular
significance for cost accounting assignments (for
example, cost center, order, project).
Asset Accounting – Asset Acquisition 100
Acquisition
110
Acquisition in-
purchase house
production
Assets Accounts Payable
Aqcuisition with Vendor
Fixed Asset Vendor
100 100  Asset transaction integrated
with Accounts Receivable or
Accounts Payable
(Only for direct Asset purchases)
Assets General Ledger No PO
Aqcuisition with Auto-offsetting Entry
Fixed Asset Clg Acct
100 100  Asset transaction posted
using clearing account (not
integrated)
(Only for direct Asset purchases)
Assets Accounts Payable
Aqcuisition with MM-PO
Fixed Asset Vendor  Asset transaction posted
100 100 MM from Materials Management
(MM)
Asset Accounting – MM Integration
Create Master Record
Purchase Requisition
With assignment to
WBS
Building
Purchase Order
required
Goods Receipt
Valuated Non-Valuated
or
Goods Receipt Assignment of
Internal Orders
WBS
To manage
Invoice Receipt budget
expenditure
Asset Accounting - Retirement
Please retire me, I am

no longer productive Types of asset retirement
1. Retirement with revenue - selling

of an asset either at a
market price, net book value or
other settlement price
2. Retirement without revenue -

writing off an asset which is
no longer productive or has no
residual value
Asset Accounting –Retirement with Revenue w/Customer
210 200
Retirement: - Acquis . date 01/01/20xx - 1, APC = 6000 Retirement Retirement
sale scrapping
- Complete retirement of APC on 03/15/20xx
- Revenue 4000
A/R posting P+L or FinStmt Notes
Revenue
Customer Asset Retirmt
4000
4400 4000
Assets posting
P+L
Clearing of
Asset Asset Retirmt Loss
1 6000 6000 2 4 4000 1300
3 700
1 APC 3 Proportional value adjustment

2 Amount retired 4 Clearing of retirement
Asset Accounting - Depreciation
SAP supports the following direct types of depreciation:
Ordinary Depreciation: planned reduction in asset value due

to normal wear and tear.
Special Depreciation: depreciation that is solely based on tax

regulations.
Unplanned Depreciation: depreciation resulting from unusual

circumstances, such as damage to the asset, that lead to a
permanent reduction in its value.
Asset Accounting - Transfers
2
Asset transfers can be one of the following

scenarios:
Transfer within Company Code (ABUMN)
1. Transfer within same Company Code

Eg. From one asset class to another
Intercompnay Transfer (ABT1N)

2. Inter-company transfers between companies in SAP
Eg. From one company to another
Asset Accounting– Fiscal Year Change /Year-End Closing
31 31
Fiscal Year Change Year-end closing
Fiscal Year Change
Fiscal Year Change Year-end closing

Asset values 1. Depreciation posting run
at fiscal year start Year 1
Transaction 0 10000 2. Year-end closing program
APC 0 10000 - Check:
Ordinary Can the year-end closing be carried out?
dep. 0 3000 - Maintenance of the last closed fiscal year per
- company code
Net book value 0 7000
Periodic processing Closing reports
Fiscal year change 3. - Asset history sheet
- Asset list
-...
Asset values
at fiscal year start Year 2
Transaction 10000 0
APC 10000 10000
Ordinary dep. 3000 - 2100 -
Net book value 7000 4900
Asset Accounting– Fiscal Year Change /Year-End Closing
 The fiscal year change program opens new annual value fields for
each asset.
 The earliest you can start this program is in the last posting period
of the old year.
 You have to run the fiscal year change program for your whole
company code.
 SAP provides you with a check report for year-end closing. It
checks whether the fiscal year change was completed for all
assets, whether depreciation was fully posted, whether errors
exist for any assets.
 If the program finds no errors, it updates the last closed fiscal year
for each depreciation area.
Asset Accounting– Reporting
Standard reports are available via the standard SAP menu:
“Fixed Assets / Information System / Reports on Asset
Accounting” Key reports:
S_ALR_87011963 - 70: Asset Balances
A series of query programs based on different selection criteria.
S_ALR_87011979 - 82: Physical Inventory Lists
A series of query programs based on different selection criteria.
S_ALR_87012936: Depreciation on Capitalized Assets (Depn
Simulation)
Simulated depreciation on assets/asset classes and Projects (can
be restricted to specific WBS elements).
S_ALR_87012026: Depreciation Current Year
Depreciation analysis by asset.
S_ALR_87012075: Asset history
Complete detailed history of each asset.

Overview of SAP FI-CO - 1

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What are the main modules in SAP FI and CO?

What are the main modules in SAP FI and CO?

What are the sub-modules of FI and CO?

What are the sub-modules of FI and CO?

SAP FI-CO

COA  The Chart of Accounts

 It combines the same type of GL accounts under one group

 It control the number ranges of the GL Master Records

 It controls the field status of General Ledger Master Records

 Useful in reporting to take report for a group of GL Accounts

Chart of Accounts Number Ranges

INT AA 120001 120299 Fixed Assets Accounts

INT CASH 110000 118999 Liquid Funds Accounts

INT EXP 400000 499999 Expense Accounts

INT G.BS 100000 399999 General Balance Sheet Accounts

INT MAT 100000 899999 Material Management Accounts

INT REV 800000 899999 Revenue Accounts

SAP R/3 supports the following transactions:

 Foreign Currency documents

Create G/L Create G/L Posting Post Manual

Posted Entry Post/Release a

Document No: 123456

Total: 1,000,000 1,000,000

 Each document consists of two segments: header and line items.

 During document entry, certain fields need to be

 You can now:

 For every Company Code there’s defined a company code

 After entering the document it is possible:

Document entered incorrectly

Liabilities Document corrected by Reversal:

Document re-entered correctly

 Reference documents are either accounting documents or

SAP R/3 supports the following transactions:

Line items can be displayed on G/L accounts which are

The balance of an open item managed

Display cleared items

 Reversal of documents that were cleared before is not possible,

 SAP system offers number of reports that help analyzing entered

Financial Statement Versions are set up to represent the balance

Using the Financial Statement you specify

Selection of Report Parameters

Variant Selection Dynamic selection

 A report can be executed directly or scheduled in

1) Enter the required

3) Enter the variant’s

• General Data (name, address)

 Company Code data

 All required data on one screen,

 A Ltd pays the vendor a down-payment: $10.000,-

Cost Element Object GR/IR Acc. Payable

1. Goods received. Bank Clearing Account Bank

4. Bank account credited/charged

Goods Receipt: 50 pcs

Business Transactions included in Process:

Send transfers Propos

Payments are Payments are

Parameters are entered

Payment proposals are created