General Ledger Process Overview Financial Accounting General Ledger

General Ledger Process Overview Financial Accounting General Ledger Master Data Transaction Processing Account Analysis & Reconciliation Periodic Processing Reporting

General Ledger Process Overview 10 K, 10 Q Controlling Cost Allocations Transaction Processing And External interfaces Account Analysis & Reconciliation Month End Close Balance Sheet Income Statement Cash Flow Reporting And Consolidation BI and BPC Asset Transactions (Capital and Depreciation) Ledger Entries Taxes, Banking Accruals (Operational) Vendor Invoices (Expense) Master Data GL Accounts Vendor Master Customer Master Asset Master Customer Invoices (Revenue)

SAP Account Receivable lifecycle

SAP Account Receivable Lock box processing

Manual Check Deposit - Activity Flow

Manual Check Deposit - Procedure Check deposit list Electronic / Manual Entry General Ledger Documents Temporary Database Sub-Ledger Check Documents

Check Deposit - Account Assignment Check Deposit List Customer Account Postings O. b. ) 200, - (1 Incoming checks Account 1) 200, - (2 Bank Account 2) 200, -

Asset processing Purchase Order Project WBS Element 1 Settlement PS WBS Element 2 WBS Element 3 Financial Document Depreciation Expense Asset Under Construction Asset #1 Class 123 Asset #2 Class 456 Expense { Transfer Impairment Disposal Sale AM

Asset processing Financial Accounting • AM transactions impact balance sheets and P&L statements Project Systems • Completed capital projects become assets Procurement • Assets acquired via vendor Joint Venture • JV assets operated will be managed by Asset Management Controlling Fixed Asset • Depreciation expense charged to cost canters Lease Cost • Lease information automatically creates transactions

Controlling Processes Planning Master Data Ø Ø Ø Ø Cost Element Cost Centre Activity Type Resource Statistical Key Figures Internal order Groups • • Ø Planning preparation Ø Cost Centre Planning Ø Internal Order Planning Ø Plan cost distribution Plan cost assessment Ø Plan indirect activity allocation Plan settlement of overhead cost orders Actual Posting Manual entries SKF entry Direct activity allocation Indirect activity allocation Order budget Period End Closing • • Reposting Actual Cost distribution Actual Cost Assessment Cost Splitting Calculate Actual Activity Prices Settlement of Overhead Orders Manual Cost Allocation FICO Reconciliation Reporting

Aspects of Profitability Management PCA PA Responsibility Accounting Profitability Analysis By Market segment (Company oriented) (Market oriented) Profitability Segments Revenue 2000 Salaries 468 Discounts 100 Materials 230 COGS 230 Contr. Margin Profit Advertising Profit Centers Ethylene Pharma Power 1440 250 Telecom External Market