FI Overview
GL
GL
AM AR
AR
FI
CON AP
AP
Special
Ledger
Financial Accounting
G/L Reporting
Legal or external
reporting
• Balance sheet
• Income Statement
• Statement of
Financial Position
Financial Accounting
External Accounting
Financial Position
Bankers, Lenders
Profit &
Stockholders Loss
Balance Sheet
External Auditors
IRS, Taxing Authority
SEC
CO/EC Overview
COMPONENT VIEW ROLE
Cost Center Acctg - CO-CCA Costs Cost Tracking
Internal Orders CO-OPA Costs Small Projects
Projects - PS Costs Large Projects
Product Costing - CO-PC Costs Product Costing
Activity Based Costing Costs Cost Management
Profitability Analysis-CO-PA Profits Margin by multi-cuts
Profit Center Acctg-EC-PCA Profits Profit & Loss Repsons.
Executive Info. System-EC-EIS Any data Cross-module reports
Controlling
CO Reporting
Internal management reporting
Reports by cost centers or other
cost “objects” and cost elements
Cost centers
Orders and Projects
Budget/plan
Actual vs. plan
Controlling
Internal Accounting
Departmental Expense
Report
Salaries 10,000
Overhead 8,000
Executives Other 5,000 Controllers
Total 23,000
Department Senior Management
Managers
FI and CO comparison
FI CO
Legal or external reporting Internal management
Reports by accounts reporting
Balance Sheet Reports by cost centers and
Income Statement cost elements
Cost Center Reports
FI/CO Organizational Structures
• Client
• Company
• Chart of Accounts
• Company Code
• Business Area
• Credit Control Area
• Controlling Area
CLIENT
Client
• Highest hierarchical level in an SAP
system
• A complete database containing all the
tables necessary for creating a fully
integrated system
• Master records are created at the client
level
CLIENT
COMPANY
Company
• Consolidated financial statements are
created at the company level
• A company can include one or more
company codes
– All company codes must use the same
chart of accounts and fiscal year
CLIENT
COMPANY
CHART OF ACCOUNTS
Chart of Accounts
• A listing of the accounts
• A chart of accounts must be assigned to
every company code
• Several company codes can use the same
chart of accounts
– A different chart of accounts can be used if a
different grouping of the chart of accounts is
required
CLIENT
US CHART OF GERMAN
ACCOUNTS CHART OF
ACCOUNTS
Co code Co code Co code Co code Co code
1000 2000 3000 4000 5000
CLIENT
COMPANY COMPANY
CHART OF CHART OF
ACCOUNTS ACCOUNTS
COMPANY CODE COMPANY CODE COMPANY CODE
Company Code A BALANCED SET OF BOOKS
• A required structure
• A legally independent entity
• The smallest organizational unit for which
accounting can be carried out
• The level where business transactions are processed
• The level where accounts are managed
• The level where legal individual financial statements,
such as the balance sheet and the profit and loss
statement, are created
CLIENT
COMPANY COMPANY
CHART OF CHART OF
ACCOUNTS ACCOUNTS
CREDIT CONTROL CREDIT CONTROL
AREA AREA
COMPANY COMPANY COMPANY
CODE CODE CODE
Credit Control Area
• An organizational unit or area of
responsibility created to control customer
credit limits
• A company code is assigned to one and
only one credit control area
• Multiple company codes can be assigned
to one credit control area
CLIENT
COMPANY COMPANY
CHART OF CHART OF
ACCOUNTS ACCOUNTS
CONTROLLING CONTROLLING
AREA AREA
COMPANY COMPANY COMPANY
CODE CODE CODE
Controlling Area
• An organizational unit defining the company's
cost/ managerial accounting operations
• A company code is assigned to one and only
one controlling area
• A controlling area can have multiple company
codes assigned to it
– This allows cross company cost allocations and
reporting
Fiscal Year Variant
•Determines the fiscal year
DECEMBER •Calendar year or
non-calendar year
•Allows the use of special
FEBRUARY periods to aid year-end
closing
JANUARY •Is assigned to a company
1 2 3 4 5 6 7 code