meljun cortes financial accounting organizations structure part a

Financial Accounting (FI)

- Organizational Structures -

January 2008This is the first step of our implementation of SAP software for our company.SAP AG - University Alliances and The Rushmore

Group, LLC 2008. All rights reserved.

2

Business Process Integration

FI

Org

Dat

a

January 2008© SAP AG - University Alliances and The

Rushmore Group, LLC 2008. All rights reserved.

3

Organizational Data

• A hierarchy in which the organizational units in an enterprise are arranged according to tasks and functions

• Are static data and are rarely changed

• The definition of organization units is a fundamental step, it is a critical factor in how the company will be structured



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Unit 3, Part 3 – Org Structures

• Organizational Structures– Client– Company– Chart of accounts– Company code– Credit control area



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Client• Highest hierarchical level in an SAP

environment• A complete database containing all the

tables necessary for creating a fully integrated information system

• Master records are created at the client level



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Client

Setting Up Clients in Customizing



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Company • A company is the smallest organizational unit for

which individual financial statements can be drawn up according to the relevant commercial law.

• 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• Company is not required in the definition of an

enterprise (optional)



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Client

Company

Organizational Structure



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Company Code

• A legally independent entity • The smallest organizational unit for which

accounting can be carried out • Business transactions are processed at this level• Accounts are managed at this level• Legal financial statements, such as the balance

sheet and the income statement, are generated at this level using the General Ledger balances



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Client

Company

CompanyCode




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Chart of Accounts

• A listing of the accounts (assets, liabilities, equity, revenues, and expenses) that are contained in the General Ledger

• A list of all G/L accounts used by one or several company codes.

• A chart of accounts must be assigned to every company code in order to create the General Ledger for that company

• Several company codes can use the same chart of accounts• For each G/L account, the chart of accounts contains the

account number, account name, account group, and whether it is in a balance sheet or profit and loss account.

Types of COA

• operative COA• country-specific COA• group COA



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GBI US GBI DE

United States Chart of Accounts

CanadianChart ofAccounts

Chart of Accounts

OperativeChart ofAccounts

• Different financial statements for each company code because of regulatory requirements of each country



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CompanyCode 010

CompanyCode 038

CompanyCode 110

CompanyCode 117

United States Chart of Accounts

CanadianChart ofAccounts

Chart of Accounts



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Client

CompanyChart ofAccounts

CompanyCode


• Balances in balance sheet accounts are carried forward into the same account at the end of the year.

• Balances in the P & L accounts are carried forward into different specified accounts.

Ex: Accounts in the GL00 COA

• Profit and Loss Accounts– Sales Revenue– Sales Discount– Miscellaneous Revenue– Revenue Deductions– Gain or Loss on Sale of Assets– Customer Service Revenue– Customer Service Revenue Settlement– Labor

• Profit and Loss Accounts– Raw Material Consumption Expense– Finished Product Consumption Expense– Trading Good Consumption Expense– Semifinished Consumption Expense– Supplies Expense– Utilities Expense– Legal and Professional Expense– Rent Expense

• Profit and Loss Accounts– Insurance Expense-Liability– Payroll Expense-Office– Payroll Expense-Administrative– Sales Expense– Tax Expense-Property– Tax Expense-Income– Miscellaneous Expense– Labor Expense– Cost of Goods Sold Expense Account

• Profit and Loss Accounts– IT Expense Account– Production Order Variance Expense Account– Utilities (electricity and phone)– Mftg Output Settlement– Mftg Output Settlement Variance– Purchase Price Difference– Production Variance– Research and Development– Cost of Good Sold

• Balance Sheet Accounts– Bank Account– Alternate Bank Account– Trade Accounts Receivables– Miscellaneous Account Receivable– Interest Receivable– Inventory-Raw Materials– Inventory-Finished Goods– Inventory-Trading Goods– Inventory-Semifinished Goods

• Balance Sheet Accounts– Inventory-Production Supplies– Inventory-Suspense – Inventory-Operating Supplies– Prepaid Insurance– Prepaid Rent– Notes Receivable– Land– Production Machinery, Equipment and Fixtures– Accumulated Depreciation-Production Machinery,

Equipment and Fixtures

• Balance Sheet Accounts– Office Furniture– Accumulated Depreciation-Office Furniture– Office Equipment and Computers– Accumulated Depreciation-Office Equipment and

Computers– Vehicles– Accumulated Depreciation-Vehicles– Intangible Assets– Accumulated Amortization-Intangible Assets– Payables-Trade Accounts

• Balance Sheet Accounts– Payables-Income Taxes– Payables-Miscellaneous– Payables-Interest– Payables-Short Term Notes– Payables-Ling Term Notes– Payables-Commissions– Goods Receipt/Invoice Receipt Account– Accrued Tax-Output

• Balance Sheet Accounts– Accrued Tax – Input– Unearned Revenues– Common Stock– Additional Paid-in-Capital– Retained Earnings

meljun cortes financial accounting organizations structure part a

Documents

level accounts

account group

company codes

accounts assets

howthe company

gl accounts

atthe company level

sap environment