Unit 10 Financial Accounting FI Transactions Business Process

Unit 10 Financial Accounting (FI) - Transactions -

Business Process Integration FI January 2008 © SAP AG - University Alliances and The

Transaction Data • Includes internal and external exchanges that describe business activities • Unlike master data, aggregate transactional data is dynamic – each transaction is unique January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 3

Financial Accounting (FI) SD FI Sales and Distribution Financial Accounting MM Materials PP Mgmt. Production SM Planning Service Mgmt. R/3 AM Fixed Assets Mgmt. EC Enterprise Client / Server Controlling QM Integrated Business PS Quality Project Mgmt. Solution System PM WF Plant Maintenance January 2008 CO Controlling Workflow HR IS Human Resources Industry Solutions © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 4

Unit 10 – Overview • • Monthly Rent Cycle Invoice Receipt Invoice Entry Accounts Payable Settlement January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 5

Monthly Rent Cycle Invoice Receipt Rental Agreement Accounts Payable January 2008 © SAP AG

Invoice Receipt January 2008 Invoice Verification © SAP AG - University Alliances and The

Invoice Entry Vendor Information January 2008 © SAP AG - University Alliances and The

Accounts Payable Settlement • Select payment method and bank • Select items for payment • Calculate the payment amount, taking account of cash discount periods • Post the payment document • Print payment medium January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 9

Unit 10 – Exercises 82. 83. 84. 85. Create Vendor Master Record for Landlord Create Rent Expense Account Create Invoice Receipt for Rent Expense Display and Review General Ledger Account Balances and Individual Line Items 86. Display and Review Vendor Account Balances and Individual Line Items 87. Post Payment to Landlord 88. Display and Review General Ledger and Vendor Account Balances and Individual Line Items January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 10

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008.

Unit 11 Materials Management (MM) - Rules -

Business Process Integration Rules MM January 2008 © SAP AG - University Alliances and

Rules • Defines the parameters for Master Data and Transactions • Determines functionality for Master Data and Transactions • Relatively fixed • Changes as policy changes January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 14

Materials Management (MM) SD FI Sales and Distribution Financial Accounting MM Materials PP Mgmt. Production SM Planning Service Mgmt. R/3 AM Fixed Assets Mgmt. EC Enterprise Client / Server Controlling QM Integrated Business PS Quality Project Mgmt. Solution System PM WF Plant Maintenance January 2008 CO Controlling Workflow HR IS Human Resources Industry Solutions © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 15

Unit 11 – Overview • Reservations • Tolerances – Purchasing – Goods Receipt – Invoice Receipt • Automatic Account Assignment • Invoice Verification January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 16

Reservations • A request to have a material ready for issue at a future date for a production order, sales order, etc. • The purpose of a reservation is to ensure that a material is available when required and not assigned to another use January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 17

Purchasing Tolerances • A tolerance limit is set for allowed variance before a warning/error message is displayed – Price variance • Compares the price in the purchase order with the valuation price stored in the material master – Maximum cash discount • This tolerance limit is set to assure that cash discounts do not exceed allowable discounts January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 18

Goods Receipts Tolerances • Purchase order price quantity – there are two tolerance levels maintained per item – The maximum percentage variance before a goods receipt postings is not allowed – A percent variance that generates a warning message but allows posting • Moving average price variance – the maximum allowable moving average price change allowed January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 19

Invoice Receipts Tolerances • Many tolerance limits that can be configured for invoice receipts: price, quantity, and blanket purchase orders These tolerances include: – – – Amount for item with or without order reference Form small differences automatically Percentage Over/Under Quantity Variance Exceed amount: quantity variance Blanket purchase order – value and time limit Price variance January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 20

Automatic Account Assignment • Automatic account assignment is created to avoid manual postings of financial transactions which follow goods movements to reflect the values of transferred materials • Automatic account assignment is used across all modules to keep track of the values of materials that are being consumed (e. g. , production), or transferred into other valuation areas of the company January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 21

Automatic Account Assignment (continued) • Automatic account assignment is a set of rules and master data which enable the financial tracking of logistics movement January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 22

Automatic Account Assignment Components • Components of Automatic Account Assignment – – – Chart of Accounts Valuation Grouping Code Transaction Key Modifier for Transaction Key Valuation Class January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 23

Automatic Account Assignment Valuation Grouping Code • Valuation grouping code - groups valuation areas together – Example: valuation area is plant, five plants exist in the company, all five plants use the same accounts. – Multiple valuation groups are possible January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 24

Automatic Account Assignment Valuation Grouping Code G 001 Grouping Code G 002 Plant – P 001 Plant – P 004 Plant – P 002 Plant – P 005 Plant – P 003 January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 25

Automatic Account Assignment Transaction Keys • Transaction Keys – The transaction keys are used to determine accounts or posting keys for line items which are created automatically by the system. – The transaction keys are defined in the system. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 26

Automatic Account Assignment Transaction Keys • Transaction Keys – Inventory Postings • BSX – Offsetting Entry for Inventory Postings • GBB – Materials Management Small Differences • DIF – Cost (price) differences (PPV) • PRD – Goods receipt / inv. receipt clearing acct • WRX January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 27

Automatic Account Assignment Modifier • Modifier – modifies the transaction key for various movement types – Blank – Goods receipt from purchase order with account assignment – VBR – Goods issue to consumption – VAX – Goods issue to sales – post to cost of goods sold – AUF – Goods receipt from a production order – post to production settlement – Etc. – Many others January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 28

Material Types & Valuation Classes • Account category reference: – Builds the link between material types and the valuation class(es) Material Type Account Category Reference Valuation Class ROH 0001 – Reference for Raw Materials 3000/3001/3002/3003 HIBE 0002 – Reference for Operating Supplies 3030/3031 HAWA 0005 – Reference for Trading Goods 3100 FERT 0009 – Reference for Finished Products 7920 January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 29

Material Types & Valuation Classes Valuation Class 3000 (Steel) Material Type ROH (Raw Material) Acct Cat. Ref 0001 – Raw Materials Valuation Class 3001 (Paper) Valuation Class 3003 (Plastics) January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 30

Automatic Account Assignment Valuation Class 3100 (Trading Good) Goods Movement GBB (Goods Issue) Account Modifier VBR (Iss. To Cons. ) Grouping Code G 001 Goods Movement GBB (Goods Issue) Plant P 003 Account Modifier VBR (Iss. To Cons. ) Grouping Code G 000 Valuation Class 3100 (Trading Good) Plant P 002 Goods Movement GBB (Goods Issue) Plant P 001 Grouping Code G 000 Valuation Class 3100 (Trading Good) Account Modifier VBR (Iss. To Cons. ) Account 790000 January 2008 Account 790001 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 31

Automatic Account Assignment Where Valued: Why 1: Why 2: Where Value is recorded: Material Valuation Area Goods Movement Additional Information Chart of Accounts Represented By: Valuation Class Valuation Grouping Code Transaction Event Key Account Modifier G/L Account Points To: Material Type Plant Why 2: Where Value is recorded: Chart of Accounts C 000 790000 What: Where Valued: Why 1: BPEN 000 Plant – P 001 Good Issued to Consumption Represented By: 3100 G 000 GBB VBR Points To: HAWA Plant – P 001 January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 32

Goods Receipt • Materials can be received as stock items or nonstock items • Receipt is possible from external or internal sources • Individually / collectively • Tolerance limits can be set for goods receipt • Special movement type for initial inventory load January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 33

Goods Receipt – (continued) • Stock items can be received into restricted or unrestricted stock • Non-stock items are received into orders, projects, cost centers • Materials that are usually received into inventory can also be received into orders, projects, cost centers January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 34

Invoice Verification • Set parameters for invoice verification – Quantity, price, receiving date, P/O quantity – Updates material master if moving average price – Automatic account assignment for price differences - if allowed • Verify actual versus target January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 35

3 -Way Match Purchase order - Target quantity - Target price - Invoice receipt - Actual price January 2008 Goods receipt - Actual quantity - © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 36

Accounts Payable Settlement Purchase Order Payment Program Invoice Receipt Debit Credit Verification Goods Receipt January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 37

Unit 11, Group 1 – Exercises 89. Set Default Values for Inventory Management Reservations 90. Maintain Purchasing Tolerance Limits 91. Maintain Goods Receipt Tolerances 92. Maintain Invoice Receipt Tolerances 93. Set (Review) Valuation Control 94. Assign Valuation Area Grouping 95. Define (Review) Valuation Classes January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 38

Unit 11, Group 2 – Exercises 96. Configure Automatic Postings for Goods Movement 97. Configure Automatic Postings for Taxes 98. Set Parameters for Invoice Verification 99. Create Default Values for Invoice Verification January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 39