SAP Financial Accounting (FI)

Mamunur Rahman, CISA, EEE

Audit Lead - Technical
Warid Telecom/ Airtel

Email: [email protected]; [email protected]

Cell: 01610006106, 01711007213

Version 2.0
Last updated: 18-Sep-2010
SAP Major Certification Areas for ERP

Procurement Production Planning Sales &

(MM) & Control (PP) Distribution (SD)
TSCM 50, 52 TSCM 40, 42 TSCM 60, 62

Financial Accounting (FI)

Financial Accounting : TFIN 50, 52

Management Accounting / Controlling (CO)

Management Accounting : TFIN 20, 22
Objectives of this Training

Introducing the participants to

 Concept of ERP
 Modular organization of SAP
 Key terms & concepts in FI
 General Ledger (GL) functionalities
 Banking functionalities
 Accounts Payable (AP) functionalities
 Accounts Receivable (AR) functionalities
 Asset Management functionalities
 New FI features &
 Custom reporting
How Participants are Benefited thru FI Knowledge
 Finance Professionals
 Knowledgeable & skilled staff
 Know various options available in the system how the Financial processes may
be implemented
 Preferred in recruitment in Finance streams
 Auditors
 Get a clear insight of the systems, processes & data
 Know the controls points in the system
 Know in advance clearly how data are processes & reported; what may go
wrong at which point
 IT Professionals
 Get a strong path into SAP-jobs
 Get a very good exposure into business processes
 Understand the objectives of the underlying technologies & BASIS
 SAP Functional Consultants
 Get the skill & understanding of the Core of SAP
 Understand where to integrate other modules of SAP
 Career Seekers
 Get a very good job-opportunity in related fields
 Understand various options/paths of career in the enterprises
Methodology

We would conduct the training as

 PPT Slides, where necessary

 Using a Model Company to understand the course better
 Practising the Topics in an SAP system (IDES version)
 Open Discussion to explain things better
Organization of this Training Course

This course is organized in seven parts (15 sessions):

 Part-1: Business Organization and Accommodation in SAP

 Part-2: GL Functions
 Part-3: AR Functions
 Part-4: AP Functions
 Part-5: FA Functions
 Part-6: New FI Functions
 Part-7: Custom Reporting

Each session spans over 03 hours.

Course Outline

 Part-1: Business Organization and Accommodation in SAP

 Day1 – Introduction to SAP and a simplified Case Study of a company
 Day2 – Enterprise Modeling & SAP Terminologies
 Day3 – Preparing the SAP Environment
 Part-2: GL Functions
 Day4 – Defining GL Master Data
 Day5 – GL Journal Posting & Basic Reporting
 Part-3: AR Functions
 Day6 – Defining AR Master Records
 Day7 – AR Transaction Posting & Basic Reporting
 Part-4: AP Functions
 Day8 – Defining AP Master Records
 Day9 – AP Transaction Posting & Basic Reporting
 Part-5: FA Functions
 Day10 – Defining FA Master Records
 Day11 – FA Transaction Posting & Basic Reporting
Course Outline … …

 Part-6: New FI Functions

 Day12 – New FI Introduction & Master Data
 Day13 – New FI Processing & Reporting
 Part-7: Custom Reporting
 Day14 – SAP Query Tool
 Day15 – External Reporting Tools, e.g., Crystal Reports, MS Access, etc
SAP

Stepping into the FI Course

Day-1: Introduction to SAP and a Case Study

Topics to cover

 Introduction to ERP (FICO & SCM)

 Organization of SAP ERP Modules
 Adopting a Model Organization to Explain SAP Features
 Focusing on Financial Accounting (FI)

Part-1: Business Organization and Accommodation in SAP

Enterprise Resource Planning (ERP)

Enterprise Resources
• Money, Men, Machines & Materials
• Lands, Licenses & Goodwill, Relationships, Knowledge, Time,
etc

Functions of ERP applications

• Helping the organization to plan, operate & control enterprise
resources for optimal utilization

Famous Names of software in ERP domain:

• SAP
• Oracle Apps
• JDE
• PeopleSoft
• BAAN, etc

Day-1: Introduction to SAP and a Case Study [Part-1]

Enterprise Resource Planning (ERP)

ERP is a generic collection of back-office applications, and it is

purely a business application. It is process-oriented rather than
function-oriented.

Segregation in ERP suites

• Financials (FI, AM, CO, etc)
• Supply Chain (MM, PP, SD, etc)
• Human Resources

Evolution of ERP (business applications):

• 1960s: Inventory Control
• 1970s: Material Requirement Planning (MRP)
• 1980s: Manufacturing Resources Planning (MRP-II)
• 1990s: Enterprise Resource Planning (ERP)

Day-1: Introduction to SAP and a Case Study [Part-1]

How ERP is implemented (ASAP Methodology)
ASAP Phase-1: Project Preparation
ASAP Phase-2: Business Blueprint
ASAP Phase-3: Realization
ASAP Phase-4: Final Preparation
ASAP Phase-5: Go Live & Hyper-care
How ERP is implemented in Generic Statements

Obtain the management’s objectives and scope of implementation

Study the manual Business Operations

Identification of Core & Sub-processes under scope

Identify the practice of deviation & get the commitment from senior
management & domain owners to stick to agreed-processes

Map the Business Processes to SAP supported processes

Map the required controls in each Process

Identify the necessity of customization

Configure SAP to implement the Processes

Apply the customizations in the system

Complete system deployment, documentation, training & handover

Part-1: Business Organization and Accommodation in SAP

Major Business Processes

Controlling/Management Accounting

Financial Accounting

Pre Sales Delivery Goods

Sell Sales Order Note Issues
Billing Payment

Shop
Planned Production
Make SOP MPS MRP
Order Order
Floor
Control

Vendor Purchase Goods Invoice Vendor

Buy Requisition Contracts
Selection Order Receipt Receipt Payment

Human Resources Plant Maintenance

Day-1: Introduction to SAP and a Case Study [Part-1]

Sales & Distribution Process

2. Sales Order Processing

3. Inventory Sourcing
1. Pre Sales Activities

4. Delivery

6. Payment
5. Billing
(Collection)

Day-1: Introduction to SAP and a Case Study [Part-1]

Procurement Process

Source Vendor
Determination Selection

Purchasing Order
Requirement Processing

Order
Follow-up

Payment &
Reconciliation Goods
Receipt
Invoice Inventory
Verification Management

Day-1: Introduction to SAP and a Case Study [Part-1]

Manufacturing Planning & Execution Process

Sales Demand
Forecasting Operation MPS
Management
Planning

C
Sales A Inventory
Information CO-PA P MRP
System A
C
I
T
Y Procurement
Planning

Production
Execution
Orders
Costing

Reporting & Order

Analysis Settlement
Production Master Data

Day-1: Introduction to SAP and a Case Study [Part-1]

SAP

Stepping into SAP implementation

of ERP
SAP Evolution

Recent Evolutions in SAP:

Builds on R/3
SAP R/3 Enterprise 4.7 mySAP ERP
2002 2003

Introduces NetWeaver Platform

SAP ECC 5.0

SAP ECC 6.0 (ERP Central Component)
2005 2004

R/3 is replaced by ECC

Part-1: Business Organization and Accommodation in SAP

SAP Milestones over 30 years

Part-1: Business Organization and Accommodation in SAP

Organization of SAP ERP Modules

Major
MajorSAP
SAPModules
Modules
SD FI
Sales & Financial
Distribution
MM
Accounting SD
SD––Sales
Sales&&Distribution
Distribution
CO
Materials
Controlling
MM
MM – MaterialsManagement
– Materials Management
Mgmt.
PP AM PP
PP––Production
ProductionPlanning
Planning
Production
Planning R/3 Fixed Assets
Mgmt.
PM
PM––Plant
PlantMaintenance
Maintenance
QM
QM – QualityManagement
– Quality Management
AM – Asset Management
AM – Asset Management
PS PS
Client / Server PS––Project
ProjectSystem
QM
Quality Project System
Mgmt. PM ABAP/4 OC System FI
FI––Financial
FinancialAccounting
Accounting
Plant Office & CO – Controlling
CO – Controlling
Maintenance Communi-
HR IS cation HR
HR––Human
HumanResources
Resources
Human Industry WF – Work Flow
WF – Work Flow
Resources Solutions

Day-1: Introduction to SAP and a Case Study [Part-1]

Financial Modules

EC M
Enterprise Controlling
A
TR FI CO S
Treasury Financial Accounting Controlling
T
GL
General

TM Treasury
Management
Ledger
CCA
Cost Center
Accounting
E
R
Cash AP Accounts

CM Management
Payable
PC
Product
Costing D
A
Accounts
Funds AR Receivable

FM Management
PA
Profitability
Analysis
T
AA
Asset
Accounting
A
IM – Capital Investment & Financing
Day-1: Introduction to SAP and a Case Study [Part-1]
Assumptions

Participants have moderate:

 knowledge on financial accounting &

 Skills on financial reporting

Day-1: Introduction to SAP and a Case Study [Part-1]

Concept Check : Basic Accounting Equation

The Accounting Equation,

Assets (A) = Liabilities (L) + Owners’ Equity (C)
A = L + C, [where C = I – E + Cp]
A = L + I – E + Cp
A + E = L + I + Cp
For simplicity,

A+E=L+I+C

Debit Credit

Day-1: Introduction to SAP and a Case Study [Part-1]

Concept Check : T-Accounts

Debit Credit

GL Head which will be debited ……… 50,000.00 ………………………………...…0.00

GL Head which will be credited……………...0.00 ……………………….…… 50,000.00

Or, simply,

Debit Credit

GL Head which will be debited ……… 50,000.00

GL Head which will be credited ……………………………………….............50,000.00

Day-1: Introduction to SAP and a Case Study [Part-1]

Concept Check : Accounting Journal

Journal No. …………………………..

Date………………………..................
Classification ………………………..

Narration……………………………………………………………………………………………
…………………………………………………………………………………………………………
…………………………………………………………………………………..
…………………………………………………………………………………………………………
……………….
GL Head GL Description Debit, Tk. Credit, Extended
Tk. Fields …
GL Head-1 Paper price 50,000/-
GL Head-2 Freight-in 5,000/-
GL Head-3 Labor charge 1,000/-
GL Head-4 Petty Cash 56,000/-
Concept Check : Trial Balance
Concept Check : Income Statement (P&L Account)
Concept Check : Balance Sheet
Concept Check : Cash Flow
Concept Check : Changes in Owners’ Equity
Case Study – MR Batteries Limited
SAP - FI

Hope that you enjoyed the class.☺

End of Day-1

Thank you…

Day-1: Introduction to SAP and a Case Study [Part-1]