FI

FI Component Short Description
HELP.CACOMPFI
Release 4.6B

FI Component Short Description SAP AG
Financial Accounting
Copyright
Copyright 2000 SAP AG. All rights reserved.
No part of this brochure may be reproduced or transmitted in any form or for any purpose without
the express permission of SAP AG. The information contained herein may be changed without
prior notice.
Some software products marketed by SAP AG and its distributors contain proprietary software
components of other software vendors.

Microsoft , WINDOWS , NT , EXCEL , Word and SQL Server are registered trademarks of
Microsoft Corporation.

IBM , DB2 , OS/2 , DB2/6000 , Parallel Sysplex , MVS/ESA , RS/6000 , AIX , S/390 ,

AS/400 , OS/390 , and OS/400 are registered trademarks of IBM Corporation.

ORACLE is a registered trademark of ORACLE Corporation, California, USA.
TM
INFORMIX -OnLine for SAP and Informix Dynamic Server are registered trademarks of
Informix Software Incorporated.

UNIX , X/Open , OSF/1 , and Motif are registered trademarks of The Open Group.

HTML, DHTML, XML, XHTML are trademarks or registered trademarks of W3C , World Wide
Web Consortium, Laboratory for Computer Science NE43-358, Massachusetts Institute of
Technology, 545 Technology Square, Cambridge, MA 02139.

JAVA is a registered trademark of Sun Microsystems, Inc. , 901 San Antonio Road, Palo Alto,
CA 94303 USA.

JAVASCRIPT is a registered trademark of Sun Microsystems, Inc., used under license for
technology invented and implemented by Netscape.
SAP, SAP Logo, mySAP.com, mySAP.com Marketplace, mySAP.com Workplace, mySAP.com

Business Scenarios, mySAP.com Application Hosting, WebFlow, R/2, R/3, RIVA, ABAP, SAP
Business Workflow, SAP EarlyWatch, SAP ArchiveLink, BAPI, SAPPHIRE, Management
Cockpit, SEM, are trademarks or registered trademarks of SAP AG in Germany and in several
other countries all over the world. All other products mentioned are trademarks or registered
trademarks of their respective companies.
2 December 1999
SAP AG FI Component Short Description
Icons
Icon Meaning
Caution
Example
Note
Recommendation
Syntax
Tip
December 1999 3
Contents
FI Component Short Description.......................................................................9

Financial Accounting .................................................................................................................. 10
FI General Ledger Accounting ................................................................................................... 11
Basic Functions ........................................................................................................................ 13
G/L Account Master Records .............................................................................................. 14
Standard G/L Account Maintenance .............................................................................. 16
Cross-Company G/L Account Maintenance................................................................... 17
G/L Account Postings.......................................................................................................... 18
Planning............................................................................................................................... 19
Schedule Manager .............................................................................................................. 21
Open Item management ..................................................................................................... 22
FI Closing and Reporting..................................................................................................... 23
Interest Calculation.............................................................................................................. 24
Special Functions ................................................................................................................ 25
External Documents....................................................................................................... 26
Document Parking.......................................................................................................... 27
FI Business Area ...................................................................................................................... 28
Foreign Currency Accounting ................................................................................................... 30
Preparation for Consolidation ................................................................................................... 31
Assignments and Data Transfer.......................................................................................... 32
Assignments................................................................................................................... 33
Realtime Update ............................................................................................................ 34
Rollup ............................................................................................................................. 35
Periodic Extract .............................................................................................................. 36
Transfer of Legacy Data................................................................................................. 37
Company Consolidation ...................................................................................................... 38
Assignments................................................................................................................... 39
Balance Reconciliation................................................................................................... 40
Parallel Currencies......................................................................................................... 41
Parallel Valuation ........................................................................................................... 42
Planning ......................................................................................................................... 43
Business Area Consolidation .............................................................................................. 44
Assignments................................................................................................................... 45
Preparations in Financial Accounting............................................................................. 46
Preparations in Asset Accounting .................................................................................. 47
Preparations in Controlling............................................................................................. 48
Preparations in Materials Management ......................................................................... 49
Preparations in Sales ..................................................................................................... 50
Company Code Consolidation ............................................................................................ 51
Information System ............................................................................................................. 52
Legal Consolidation .................................................................................................................. 53
Basic Functions ................................................................................................................... 54
4 December 1999
Consolidation Procedures .............................................................................................. 55

Master Data.................................................................................................................... 56
Centralized Data Entry ................................................................................................... 57
Online Data Entry...................................................................................................... 58
Automatic Data Transfer........................................................................................... 59
Consolidation Management ........................................................................................... 60
Data Transfer Monitor ............................................................................................... 61
Consolidation Step Monitor....................................................................................... 62
Validation Check ....................................................................................................... 63
Currency Translation...................................................................................................... 64
Posting ........................................................................................................................... 65
Intercompany Elimination............................................................................................... 66
Elimination of IC Profit / Loss in Inventory ..................................................................... 67
Elimination of IC Profit / Loss in Transferred Assets ..................................................... 68
Consolidation of Investments......................................................................................... 69
Other Consolidation Functions....................................................................................... 70
Reclassification ......................................................................................................... 71
Bundling Consolidation Activities.............................................................................. 72
Services ......................................................................................................................... 73
Balance Carryforward ............................................................................................... 74
Copy Function........................................................................................................... 75
Remote Data Entry.............................................................................................................. 76
Data Entry with MS Access............................................................................................ 77
Data Entry with dBase.................................................................................................... 78
Data Entry on Non-SAP Systems .................................................................................. 79
Information System ............................................................................................................. 80
Master Data, Financial Data, Control Parameters ......................................................... 81
Journal Entries ............................................................................................................... 82
Standard Reports ........................................................................................................... 83
Totals Reports........................................................................................................... 84
Report Writer / Report Painter .................................................................................. 85
Interactive Reports.................................................................................................... 86
Interactive Excel........................................................................................................ 87
Data Forwarding............................................................................................................. 88
Data Forwarding for Step Consolidation................................................................... 89
Data Forwarding for EIS ........................................................................................... 90
Accounts Payable..................................................................................................................... 91
Basic Functions ................................................................................................................... 92
Master Data.................................................................................................................... 93
Schedule Manager ......................................................................................................... 94
Invoice Parking............................................................................................................... 95
Invoices and Credit Memos ........................................................................................... 96
Release for Payment...................................................................................................... 97
Manual Payments .......................................................................................................... 98
Down Payments ............................................................................................................. 99
December 1999 5
Bills of Exchange.......................................................................................................... 100

Payment Transactions ................................................................................................. 101
Dunning ........................................................................................................................ 102
Open Item Management .............................................................................................. 103
Correspondence........................................................................................................... 104
Interest Calculation ...................................................................................................... 105
Closing Operations....................................................................................................... 106
Special Functions......................................................................................................... 107
External documents ................................................................................................ 108
EDI .......................................................................................................................... 109
Information System ........................................................................................................... 110
Accounts Receivable .............................................................................................................. 111
Basic Functions ................................................................................................................. 112
Master Data.................................................................................................................. 113
Schedule Manager ....................................................................................................... 114
Invoices and Credit Memos ......................................................................................... 115
Manual Payments ........................................................................................................ 116
Basic Functions....................................................................................................... 117
Payment Advice Notes (Incoming) ......................................................................... 118
Down Payments ........................................................................................................... 119
Bill of Exchange ........................................................................................................... 120
Payment Transactions ................................................................................................. 121
Dunning ........................................................................................................................ 122
Open Item Management .............................................................................................. 123
Correspondence........................................................................................................... 124
Interest Calculation ...................................................................................................... 125
Special Functions......................................................................................................... 127
External Documents................................................................................................ 128
Preliminary Postings ............................................................................................... 129
Credit Management...................................................................................................... 130
Information System ...................................................................................................... 131
Asset Accounting.................................................................................................................... 132
Basic Functions ................................................................................................................. 133
Asset Maintenance....................................................................................................... 134
Basic Valuation Functions............................................................................................ 135
Depreciation Areas ................................................................................................. 136
Derived Depreciation Areas .................................................................................... 137
Calculation of Interest ............................................................................................. 138
Period Control ......................................................................................................... 139
Group Assets .......................................................................................................... 140
Valuation Methods .................................................................................................. 141
Fiscal Year Specifications ............................................................................................ 142
Alternative Fiscal Year Variants.............................................................................. 143
Shortened Fiscal Year ............................................................................................ 144
6 December 1999
Half Months............................................................................................................. 145

Period Weighting (4-4-5 Rule) ................................................................................ 146
Depreciation ................................................................................................................. 147
Ordinary Depreciation ............................................................................................. 148
Special Depreciation ............................................................................................... 149
Unplanned Depreciation ......................................................................................... 150
Transferred Reserves ............................................................................................. 151
Manual Depreciation ............................................................................................... 152
Unit-of-Production Depreciation.............................................................................. 153
Transactions................................................................................................................. 154
Acquisitions............................................................................................................. 155
Down Payments...................................................................................................... 156
Retirements............................................................................................................. 157
Transfer Postings.................................................................................................... 158
Settlement of Line Items for AUC ........................................................................... 159
Manual Value Adjustment....................................................................................... 160
Posting Depreciation to the General Ledger .......................................................... 161
Validations .............................................................................................................. 162
Specific Valuations ............................................................................................................ 164
Reserve for Special Depreciation ................................................................................ 165
Indexed Replacement Values ...................................................................................... 166
Handling of Inflation ..................................................................................................... 167
Investment Support ...................................................................................................... 168
Net Worth Tax .............................................................................................................. 169
Insurance ..................................................................................................................... 170
Leasing Processing ........................................................................................................... 171
Group Requirements ......................................................................................................... 172
Historical Group Currency............................................................................................ 173
Group Valuation ........................................................................................................... 174
Intercompany Profit / Loss due to Asset Transfer........................................................ 175
Standard Reports ......................................................................................................... 177
Individual Report Selection .......................................................................................... 178
Report Links ................................................................................................................. 179
Individual Asset History Sheet Versions ...................................................................... 180
Conversion Methods for the Info System..................................................................... 181
FI - Special Purpose Ledger................................................................................................... 182
Master Data....................................................................................................................... 184
Tables .......................................................................................................................... 185
Ledger .......................................................................................................................... 186
Code Combinations...................................................................................................... 187
Sets .............................................................................................................................. 188
Integrated Master Data ................................................................................................ 189
Table Definition and Installation ........................................................................................ 190
December 1999 7
Direct Data Entry ............................................................................................................... 191

Planning............................................................................................................................. 192
Assessment....................................................................................................................... 194
Distribution ........................................................................................................................ 195
Rollup ................................................................................................................................ 196
Currency Translation ......................................................................................................... 197
Balance Carryforward........................................................................................................ 198
Data Transfer .................................................................................................................... 199
Integration Interface .......................................................................................................... 200
Validation, Substitution and Rules.......................................................................................... 201
Validation........................................................................................................................... 202
Substitution........................................................................................................................ 203
Rules ................................................................................................................................. 204
Information System................................................................................................................. 205
Funds Management................................................................................................................ 206
Basic Data ......................................................................................................................... 207
Budgeting and Availability Control .................................................................................... 209
Postings............................................................................................................................. 211
Recording Actual and Commitment Data.......................................................................... 213
Additional Functions .......................................................................................................... 216
Closing operations ....................................................................................................... 217
Revenues Increasing the Budget................................................................................. 219
8 December 1999
FI Component Short Description
December 1999 9
Definition
The Financial Accounting component meets the international demands of a companys financial
accounting requirements using an open, integrated data flow and simplifies financial decision
making to a large extent.
All postings between the different applications in the R/3 system are made realtime. For example,
if you post to the Accounts payable subledger, then the system automatically makes an
offsetting entry to the general ledger.
The R/3 Financial Accounting component is divided into the following areas:
General Ledger Accounting
Consolidation
Accounts Payable
Accounts Receivable
Asset Accounting
Special Purpose Ledger
10 December 1999
FI General Ledger Accounting

Purpose
The central task of G/L accounting is to provide a comprehensive picture for external accounting
and accounts. Recording all business transactions (primary postings as well as settlements from
internal accounting) in a software system that is fully integrated with all the other operational
areas of a company ensures that the accounting data is always complete and accurate.
Purchasing Sales
Quantity Value P.O.

Invoice
Vendor Customer
Accounts D C Accounts D C
payable X receivable X
Assets HR
Fixed Wages
assets Salaries
l-
era
Gen ger FI - GL
l ed
Features
The SAP FI General Ledger has the following features:
Free choice of level: corporate group or company
Automatic and simultaneous posting of all sub-ledger items in the appropriate general
ledger accounts (reconciliation accounts)
Simultaneous updating of general ledger and cost accounting areas
Real-time evaluation of and reporting on current accounting data, in the form of account
displays, financial statements with different financial statement versions and additional
analyses.
Essentially, the general ledger serves as a complete record of all business transactions. It is the
centralized, up-to-date reference for the rendering of accounts. Actual individual transactions can
be checked at any time in realtime processing by displaying the original documents, line items,
and transaction figures at various levels such as:
December 1999 11
Account information
Journals
Totals/transaction figures
Balance sheet/profit and loss evaluations
12 December 1999
Basic Functions
Basic Functions
Definition
In "basic functions" you can select the basis functionalities for General Ledger accounting.
December 1999 13
G/L Account Master Records

Speziellen Ledger [Page 182]
Definition
G/L account master records contain the data that is always needed by the general ledger to
determine the account's function. The G/L account master records control the posting of
accounting transactions to G/L accounts and the processing of the posting data.
Use
Before you can make postings to a G/L account, you have to create a master record in the
system for the account.
Structure
G/L account master records are divided into two areas so that company codes with the same
chart of accounts can use the same G/L accounts.
Chart of accounts area
The chart of accounts area contains the data that is valid for all company codes,
such as the account number.
Company code specific area
The company code specific area contains data that may vary from one company
code to another, such as the currency in which the account may be posted.
Chart of accounts INT

Account number 100000
Short text Petty cash
Chart of accounts area
.......... ..........
Company code-specific
area
Germany Great Britain USA
Company code 1000 Company code 2000 Company code 3000

Currency DEM Currency GBP Currency USD
.......... .......... .......... .......... .......... ..........
14 December 1999
Integration
In the standard system, all business transactions that are posted to G/L accounts are updated in
the general ledger. Additionally, you can define further ledgers to which data can also be posted.
To do this, you must implement the Special Purpose Ledger.
December 1999 15
Standard G/L Account Maintenance
Standard G/L Account Maintenance

Definition
Standard G/L account maintenance contains all common transactions (create, delete, lock, etc.)
which are related to G/L accounts.
G/L account maintenance is required for the initial setup of all accounts, as well as for the
changes which need to be made to G/L accounts during the course of normal business
operations.
16 December 1999
Cross-Company G/L Account Maintenance
Cross-Company G/L Account Maintenance

Definition
Cross-company G/L account maintenance is necessary if you work with multiple company codes
and/or charts of accounts.
If you want to reuse charts of accounts and G/L accounts, you can copy the charts and create
reference or sample accounts. You can create G/L accounts at the company code or chart of
accounts level. This is necessary in cases where you use the same chart of accounts in multiple
company codes, yet the accounts are set up differently at the company code level.
December 1999 17
G/L Account Postings
G/L Account Postings

Definition
Accounting transactions which affect the General Ledger create G/L account postings.
Postings to sub-ledger accounts (accounts payable/receivable, asset accounting) can cause G/L
account postings to be generated, due to their integration in the FI system.
The line items contain information for each line, such as the posting key, account number and
amount. Further information may also be required, based on the type of transaction being
posted.
There are other types of documents in the system besides the accounting documents described,
such as sample documents and recurring documents. These documents serve to simplify the
data entry procedure.
18 December 1999
Planning
Planning
Purpose
The planning function in the General Ledger enables you to enter plan data based on your
financial statement versions. You can use a budgeted financial statement to compare plan data
with actual data.
Implementation Considerations
Before you can create plan data and use it for various reports, you have to set up planning. For
more information, see Setting Up Planning [Ext.].
Integration
You can use plan data from the following application components in the SAP system for your
planning in the General Ledger:
Overhead Cost Controlling (CO-OM)
Profitability Analysis (CO-PA)
For more information, see Copying Plan Data [Ext.].
Features
You enter the plan data per company code. Within a company code, you can plan for
accounts and/or a combination of both accounts and business areas.
You can plan as follows for each company code:
Accounts only, without business areas
Accounts and business areas
Accounts and selected business areas
In the planning function, you navigate within one of the financial statement versions that you
have already created. You use a financial statement version to define the format of the
financial statements.
You can enter plan data for:
The entire financial statement version
Particular sections of the version
You can define different plan versions. You can use these for entering plan data for different
financial statement versions, for example.
Planning is always made for a year, which means you cannot plan for more than one fiscal
year.
You enter your plan data by entering plan totals and distributing them to the individual plan
periods by means of a distribution key. You can also enter plan data for the individual plan
periods, and have the system total these amounts.
You can enter the plan data either in local currency or in transaction currency.
December 1999 19
Planning
When entering the plan data, you can also display the actual data of the previous year.
You can use report program RFBILA00 to create a budgeted financial statement. The
budgeted financial statement contains the actual data from the financial statements and also
the plan data, for comparison purposes. For more information, see Creating Budgeted
Financial Statements [Ext.].
For information on how to enter plan data, see Entering Plan Data [Ext.].
20 December 1999
Schedule Manager
Schedule Manager
The Schedule Manager enables or facilitates (by extensive automation) definition, scheduling,
execution and control of periodic, iterative tasks, such as period-end closing.
There are four independent components:
Flow Definition [Ext.]
Scheduler [Ext.]
Monitor [Ext.]
Worklist [Ext.]
December 1999 21
Open Item management
Open Item management

Definition
Items belonging to an account with open item management are designated as open or cleared.
The balance of such an account is always derived from the balance of its open items. G/L
accounts are maintained with open item management if you want to bee able to check whether
requisite offsetting entries have already been made for an accounting transaction.
22 December 1999
FI Closing and Reporting
FI Closing and Reporting
December 1999 23
Interest Calculation
Definition
Interest on accounts receivable can be determined by either calculating interest on the balance
or calculating interest on the arrears.
Interest calculation is controlled by the following specifications:
Data entered in the master record of the account, such as the interest indicator to be
used and information for determining the calculation period for the account.
Settings made under the interest indicator, for example, interest rates.
Options set at the time of interest calculation, including selection criteria, for example,
which limit the number of accounts included in the interest calculation.
24 December 1999
Special Functions
Special Functions
Definition
The following General Ledger-related special functions are also available:
external documents
document parking
Selection criteria
You need these components if you want to work with either external documents or document
parking.
December 1999 25
External Documents
External Documents
Definition
This procedure enables the accounting department to create documents for an external SAP
installation, to process these documents further and to store them in an operating system file.
This file is transported to the external system via e-mail or disk, where it is imported into the
proper database.
After examining and, if necessary, further processing these documents, users can select them
and then post them using an internal batch input mode in the external system.
Selection criteria
You only need this component if you interchange documents with external SAP installations and
post them via batch input.
26 December 1999
Document Parking
Document Parking
Definition
When you save a parked document, no transaction figures, asset values or control totals are
updated in the General Ledger. No automatic postings are generated and account balance
checks are not carried out. However, the balance is displayed in the document overview under
parked documents.
The system issues a document number. Document number assignment proceeds as it does for
document entry. The parked document can then be updated at a later date, pending approval or
examination.
December 1999 27
FI Business Area
FI Business Area
Purpose
Business areas are primarily used to facilitate external segment reporting across company
codes, covering the company's main areas of operation (product lines, branches).
You can assign all balance sheet items, such as fixed assets, receivables, payables and material
stock, as well as the entire P&L statement directly to business areas. You can only assign banks,
equity, and taxes manually to business areas if you do this indirectly. For this reason, it is not
possible to create the legally-required financial statements and tax reports at business area level.
Financial statements at business area level are therefore only suitable for use in internal
reporting.
Features
To be able to create a balance sheet and/or P&L statement, the data has to be updated in the
general ledger transaction figures for each business area. There are two different procedures for
doing this:
When posting the original document, the system supplies the business area with the correct
information.
You create a customer invoice. You can assign the sales revenue to exactly one
business area. The same business area is also assigned to the receivable.
Account Business Area Amount
Customer/receivable 0001 200.00
Revenue 0001 200.00-
The business area used in the original posting (particularly when the initial value is not
entered) is changed to the correct value in a second step, using an adjustment posting in the
general ledger. This may sometimes distribute the posting to several business areas.
You create a customer invoice. The sales revenue must be assigned to several
business areas. The receivable is posted without a business area, and a transfer
posting is made in a second step.
Customer/receivable 700.00
Revenue 0001 300.00-
Revenue 0002 400.00-
28 December 1999
FI Business Area
Receivable 700.00-
Receivable 0001 300.00
Receivable 0002 400.00
The following documentation explains how you set the business area in accounting documents
created by accounting transactions from individual SAP applications. In addition, it shows the
steps necessary for creating a business area balance sheet and/or P/L statement.
December 1999 29
Foreign Currency Accounting
Foreign Currency Accounting

Definition
Currency Accounting allows you to manage accounts in multiple currencies.
Transaction and local currencies are maintained for each posting:
Transaction currency Currency in which each document is posted
Local currency Currency in which financial statements are generated
You also have the option of using two additional parallel currencies in accounting transactions.
You can select two of the following currency types:
Hard currency Parallel currency for generating the balance sheet and profit and
loss statement (i.e., for countries with hyperinflation)
Index currency Parallel currency for generating the balance sheet and profit and
loss statement (i.e., for countries with hyperinflation)
Group currency Currency in which the consolidated financial statements are
generated
Global company currency Currency of the company to which the company code belongs
30 December 1999
Preparation for Consolidation
Preparation for Consolidation
December 1999 31
Assignments and Data Transfer
Assignments and Data Transfer

Definition
This component covers general specifications as part of the preparation for consolidation, as well
as various methods for the integrated transfer of individual financial statement data into the
Consolidation system.
Selection criteria
This component must always be selected for the preparation for consolidation.
Please note the following when selecting the data transfer component (next hierarchy level):
Ensure that you choose a uniform data transfer method for all of the company codes set up in the
sender system. Any exceptions to the rule can be portrayed on a company code basis using
tools found in the FI-SL application (Special Purpose Ledger).
Assuming the situation in your system permits all data transfer methods, you should compare the
advantages and disadvantages of each method.
32 December 1999
Assignments
Assignments
Definition
Assignments determine the receiving consolidation system and defines the consolidation
functions in respect to its scope, type of consolidation, and so on.
Selection criteria
This component is mandatory for the preparation for consolidation.
December 1999 33
Realtime Update
Realtime Update
Definition
A data transfer method by which every individual business transaction relevant to the general
ledger is updated in the totals records of the consolidation processing ledger immediately after
posting.
General ledger accounts in FI General Ledger Accounting and FS items in Consolidation are
linked through the corporate chart of accounts, whose accounts correspond with the items. By
assigning general ledger accounts to accounts in the corporate chart, you reassign the general
ledger account as an item and enable the Consolidation processing ledger to be updated.
With this component you set up realtime update and make the necessary settings for account
reassignment.
Selection criteria
A precondition for realtime update is that the sender and receiver of data work in the same R/3
system and client (central scenario).
34 December 1999
Rollup
Rollup
Definition
A data transfer method which selects balances from a specified ledger. Normal reassignment of
organizational units and accounts is made possible by predefined standard exits within the field
grouping code for the rollup processor. You need to enhance the field grouping code in
Customizing for customer-specific additional account assignments.
With this component you set up the rollup and make the necessary settings for account
reassignment.
Selection criteria
This procedure is possible both in a central scenario and also across systems and clients.
A rollup is particularly suitable for transferring individual financial statement data if you enter
customer-specific additional account assignments in General Ledger Accounting and want to
duplicate these in the consolidation processing ledger.
December 1999 35
Periodic Extract
Periodic Extract
Definition
A data transfer method which updates every individual business transaction relevant to the
general ledger in the totals records of the consolidation staging ledger. Data is selected
periodically in an extract and imported into the consolidation processing ledger.
General ledger accounts in FI General Ledger Accounting and FS items in Consolidation are
linked through the group financial statement version. This version must correspond with the
Consolidation FS chart of accounts, enabling general ledger accounts to be reclassified as items
when the extract is imported into the consolidation processing ledger.
With this component you set up periodic extract and make the necessary settings for account
reassignment
Selection criteria
This procedure is possible both in a central scenario and also across systems and clients.
36 December 1999
Transfer of Legacy Data
Transfer of Legacy Data

Definition
Transfer of the data set from a previous system.
This component allows you to create and initial data set in the consolidation staging ledger or the
consolidation processing ledger, and to modify the data set if the additional account assignments
required for consolidation are missing. Furthermore, this component allows you to compare the
consolidation staging ledger and processing ledger with the general ledger and to delete test
data.
Selection criteria
It is recommended that this component always be selected for the preparation for consolidation.
December 1999 37
Company Consolidation
Company Consolidation
Definition
Company consolidation is used to draw up consolidated financial statements based on legally
independent companies. In operational SAP systems, it is usually the company codes which
pass on their individual financial statement data to the Consolidation system.
Selection criteria
This component should be selected for company consolidation and also if you select the
business area consolidation component. The assignments which need to be made for the
company consolidation should also be made for business area consolidation.
38 December 1999
Assignments
Assignments
Definition
This component allows you to assign master data which is used for the automatic account
assignment of trading partners when posting intercompany business transactions.
You can assign the following:
A company ID in the customer/vendor master record. Internal trading partners are
represented in customer/vendor master records.
A company ID in the general ledger (G/L) account master record. If business
relationships with other internal trading partners are not represented in customer/vendor
master records but instead in G/L accounts specifically set up for this purpose, you enter
the company ID directly into the G/L account master record.
Selection criteria
This component is mandatory for preparations for consolidation.
December 1999 39
Balance Reconciliation
Balance Reconciliation
Definition
Balance reconciliation is a procedure for comparing and clarifying differences when handling
postings for partner-related activities in the individual financial statements of internal trading
partners.
The main purpose of balance reconciliation is to recognize any differences early on in
consolidation.
As of Release 3.0E, a balance reconciliation program with various assignment procedures is
available.
40 December 1999
Parallel Currencies
Parallel Currencies
Definition
Parallel currencies are required for consolidation if transactions are to be transferred to the
consolidated financial statements after being translated using the spot exchange rate, and you do
not want to retranslate using periodic, average or current exchange rates.
Two further currencies, such as group currency, can be managed in parallel with the local
currency. You can specify whether a parallel currency will be managed for a company code
(company), and if so which.
With this component you make the necessary settings for parallel currencies in operational
applications.
Selection criteria
Choose this component when implementing parallel currencies.
December 1999 41
Parallel Valuation
Parallel Valuation
Definition
The Consolidation module distinguishes between local valuation (individual financial statements)
and corporate valuation. In operational SAP applications, it is often possible to manage data in
parallel according to both local and corporate valuations.
With this component you make the necessary settings for parallel valuation in operational
applications.
Selection criteria
Choose this component when implementing parallel currencies.
42 December 1999
Planning
Planning
Definition
A budgeted balance sheet and income statement from FI General Ledger Accounting can (like
actual data) be prepared locally and transferred to Consolidation.
The entry of plan data in FI with additional account assignments such as trading partner or
transaction type is currently only possible using the FI-SL (Special Purpose Ledger) application,
and by transferring data to Consolidation in a rollup.
Selection criteria
If you want to transfer plan data to Consolidation in a rollup, you need to select the Rollup
component.
December 1999 43
Business Area Consolidation
Business Area Consolidation

Definition
Consolidation on the basis of consolidation units, which are combinations of one company and
one consolidation business area.
In the individual financial statements, business areas can also be specified as additional account
assignments in posting transactions. Balance sheets can be prepared for business areas. The
SAP Consolidation system (FI-LC) can generate consolidated financial statements for business
areas by performing eliminations between business areas.
Selection criteria
If you select this component, you also need to select the Business area consolidation
component, since the settings for business area consolidation are a prerequisite for business
area consolidation.
44 December 1999
Assignments
Assignments
Definition
With this component you can form consolidation units for business area consolidation.
Selection criteria
This component is mandatory for preparations for business area consolidation.
December 1999 45
Preparations in Financial Accounting
Preparations in Financial Accounting

Definition
This component allows you to modify the settings in Financial Accounting to match the
requirements of business area consolidation.
You need to set up account assignment procedures in Financial Accounting so that one business
area must be specified for each entry posted. Accordingly, you must maintain the field status
definitions for the general ledger entries and create accounts for the subsequent debiting of
business areas.
Selection criteria
This component is mandatory for preparations for business area consolidation.
46 December 1999
Preparations in Asset Accounting
Preparations in Asset Accounting

Definition
This component allows you to modify the settings in Asset Accounting to match the requirements
of business area consolidation.
In Asset Accounting, you can assign an asset to the appropriate business area in the asset
master records. Asset postings then inherit the assigned business area and, where applicable,
the trading partner business area.
Selection criteria
You should only select this component if the FI-AA (Financial Accounting) application is
implemented.
December 1999 47
Preparations in Controlling
Preparations in Controlling
Definition
This component allows you to modify the settings in Controlling to match the requirements of
business area consolidation.
You can make assignments to business areas in the CO account assignment objects such as
cost center, order, or project.
You can use this component to make settings related to inter-business area eliminations for
reconciliation postings between Controlling and Financial Accounting.
Selection criteria
You should only select this component if the CO (Controlling) application is implemented.
48 December 1999
Preparations in Materials Management
Preparations in Materials Management

Definition
This component allows you to modify the settings in Materials Management to match the
You need to make the following master data assignments in order to automatically derive the
business area:
The combination of division and valuation area should be assigned to a business area.
In the material master records, the relevant division should be entered for articles,
products and services.
Selection criteria
You should only select this component if the MM (Materials Management) application is
implemented.
December 1999 49
Preparations in Sales
Preparations in Sales
Definition
This component allows you to modify the settings in Sales and Distribution to match the
You need to select one of the following alternative rules in order to automatically derive the
business area:
Assignment of a business area by plant and division.
Assignment of a business area by sales area
Selection criteria
You should only select this component if the SD (Sales and Distribution) application is
implemented.
50 December 1999
Company Code Consolidation
Company Code Consolidation

Definition
Consolidation using the General Ledger.
You can create consolidated financial statements via G/L accounts in cases involving a small
number of company codes.
December 1999 51
Information System
Information System
Definition
The G/L accounting information system enables you to evaluate information in the general
ledger. Its primary database is the Financial Accounting application. This application is a central
data pool, which collects all accounting data arising within an organization. The purpose of the
financial information system is to evaluate this extensive database online and display the
information in easily-readable form.
G/L account transaction figures and the financial statement versions are the primary sources of
data for the G/L account information system. Balance sheet analyses and balance sheet ratio
reports are the available report types. You can also generate your own user-specific reports.
52 December 1999
Legal Consolidation
Legal Consolidation
Definition
Inclusion of the individual financial statements of group companies in the consolidated financial
statements according to the single legal entity theory. This theory states that consolidated
financial statements should show the assets, financial position and income of a group as if the
group were a single enterprise.
To achieve this, all effects on the consolidated financial statements arising from goods and
services and financial dependencies between the internal trading partners must be eliminated.
In the FI-LC Consolidation system you can consolidate business areas as well as companies.
Selection criteria
You should select this component if you want to prepare consolidated financial statements
according to legal regulations, or periodic financial statements and plan consolidation for
information purposes.
December 1999 53
Basic Functions
Basic Functions
Definition
This component includes the individual consolidation activities.
54 December 1999
Consolidation Procedures
Consolidation Procedures
Definition
The R/3 application Consolidation supports two consolidation procedures:
Simultaneous Consolidation
Simultaneous Consolidation takes into consideration all companies to be included in the
corporate group in a single process. A subgroup, which represents the corporate group
and includes all companies, is created in the Consolidation system. If you need to
consolidate further groups of companies, say, for reporting purposes, you must create
additional subgroups.
Step Consolidation
In Step Consolidation, each company is consolidated "in steps" according to the
hierarchy in the (multi-level) group. A subgroup is created for each hierarchy level. The
consolidated subgroup statements flow into the consolidation for the next higher
hierarchy level.
Each of the subgroup statements are generated according to the procedure Simultaneous
Consolidation. Step Consolidation is the result of the step-by-step processing of the group
hierarchy.
Selection criteria
This component is only intended to inform you about the two different consolidation procedures.
The selection of this component has no effect on the Customizing activities or any activities in a
live Consolidation application.
December 1999 55
Master Data
Master Data
Definition
The master data of Consolidation essentially consists of companies, subgroups and financial
statement items. You can (simultaneously) implement any of the multiple FS charts of accounts
included in the standard SAP system.
This component allows you to maintain master data.
Selection criteria
This component is mandatory for Consolidation.
56 December 1999
Centralized Data Entry
Centralized Data Entry

Definition
Central data entry provides you with (a) the capability of entering input individual financial
statement data into the R/3 Consolidation system using data entry forms (online data entry), and
(b) an integrated automatic transfer of individual financial statement data from other SAP
systems.
December 1999 57
Online Data Entry
Online Data Entry

Definition
Online data entry is available in the Consolidation menu via data entry forms and financial
reporting tables. The data from the companies is input via data entry forms. Certain financial
data tables also accept company data which is needed for performing the individual consolidation
steps.
Selection criteria
It is recommended that the component always be selected for Consolidation in order to enable a
central input of data into the R/3 Consolidation system.
58 December 1999
Automatic Data Transfer
Automatic Data Transfer

Definition
The following options are available for the integrated transfer of individual financial statement
data from other R/3 systems into Consolidation:
Periodic extract
A data transfer method, in which the totals records in the consolidation staging ledger are
updated with each G/L-related business transaction and are imported into the
Consolidation ledger in periodic intervals.
Realtime update
This data transfer method posts each G/L-related business transaction directly to the
totals records of the consolidation ledger. This method is only available in central
scenarios (in which the sender and receiver applications are both located in the same
system and the same client).
Rollup
This data transfer method selects the data from any ledger.
Upload from R/2
You can use an upload to retrieve consolidation data from R/2 systems.
This component allows you to customize the settings required for importing data into the
Consolidation system.
The setting of the data transfer method in the operational systems is part of the preparation for
consolidation.
Selection criteria
If this component is selected, you must also select the component "Preparation for
Consolidation" (in the application FI/General Ledger) in the respective operational systems.
December 1999 59
Consolidation Management
Consolidation Management
Definition
Involves the execution, management and reconciliation of each of the consolidation activities.
The consolidation status shows which activities have been performed. A certain sequence must
be adhered to in order to ensure that consolidation is performed in an orderly fashion.
60 December 1999
Data Transfer Monitor
Data Transfer Monitor

Definition
Monitors the transfers of individual financial statement data into the Consolidation system. The
data monitor has essentially the following functions:
displays the import procedure for each company
displays the import status of each company
executes the import of data for a single company or a bundle of multiple companies
Selection criteria
December 1999 61
Consolidation Step Monitor
Consolidation Step Monitor

Definition
Monitors the consolidation steps. Consolidation entries must be posted at pre-determined
intervals within the consolidation sequence and is therefore controlled by status management in
order to ensure that consolidation is executed in an orderly fashion. Status management is
broken down into the areas of data entry, currency translation and subgroups.
Selection criteria
62 December 1999
Validation Check
Validation Check
Definition
Ensures the integrity of the consolidation data at the following intervals:
after data entry has occurred
after data entry and the standardizing entries have occurred
after the eliminating and consolidation entries have occurred
The validation results are evaluated in consolidation status management.
Selection criteria
This component is mandatory for consolidation.
December 1999 63
Currency Translation
Definition
Currency translation allows for individual translation of data for each company from its local
currency (or even the transaction currency) into the group (reporting) currency. A translation
method is assigned to the companies in each company master record. A translation method
determines which sets of financial statement items are translated and which exchange rate is
used.
SAP provides predefined translation methods. This component also allows you to define your
own translation methods to meet your individual requirements.
Selection criteria
The component must be selected under the following conditions:
The individual financial statement data is to be translated into group currency.
One or more companies are to be included in the consolidated financial statements on a
proportional basis. The individual financial statement data is apportioned during
currency translation.
64 December 1999
Posting
Posting
Definition
The Consolidation system allows four types of entries:
standardizing entries
consolidation entries in pairs
subgroup-consolidating entries with trading partners within the group
subgroup-consolidating entries with group-external trading partners
The component features the maintenance of document types, the maintenance of number ranges
(for assigning document numbers) and the definition of entry validations.
Selection criteria
This component is mandatory for consolidation.
December 1999 65
Intercompany Elimination
Intercompany Elimination
Definition
Eliminates group-internal receivables and payables as well as group-internal revenue and
expenses.
IC elimination is based on partner-based input of financial statement items in the individual
financial statement data. Elimination rules determine which FS items are cleared against each
other and how to treat any elimination differences that might occur.
SAP provides predefined elimination rules. The component also allows you to define your own
rules to accommodate your individual requirements.
Selection criteria
You only gain access to the automatic functions of Intercompany Elimination when this
component is selected. Otherwise, the elimination entries may have to be posted manually.
66 December 1999
Elimination of IC Profit / Loss in Inventory
Elimination of IC Profit / Loss in Inventory

Definition
Eliminates the net income that is generated by group-internal sales and services.
This component interprets intercompany profit/loss as the difference between the group-internal
price of sale and the acquisition and production costs, seen from the group's point of view.
In addition to the individual financial statement data, the elimination of IC profit/loss also requires
the input of additional data in the financial reporting tables, which the system needs to determine
the IC profit/loss to be eliminated.
Selection criteria
You only gain access to the automatic functions of the Elimination of IC Profit/Loss when this
December 1999 67
Elimination of IC Profit / Loss in Transferred Assets
Elimination of IC Profit / Loss in Transferred Assets

Definition
Eliminates group-internal transfers of assets. According to the entity theory in corporate
accounting, the sale of fixed assets between companies within a consolidated group must be
treated as if the asset merely was "shifted" from one plant to another.
As a result, the group needs to (a) eliminate any intercompany profit or loss that was generated
by the sale of the asset, and (b) continue the depreciation of the asset using the method and
valuation that originated at the retiring company.
In addition to the individual financial statement data, the elimination of IC profit/loss in transferred
assets also requires the input of additional data in the financial reporting tables.
Selection criteria
You only gain access to the automatic functions of the Elimination of IC Profit/Loss when this
68 December 1999
Consolidation of Investments
Consolidation of Investments
Definition
Eliminates the investments of parent companies against the proportional equity of the
subsidiaries, joint ventures and associated companies in the group; also processes minority
interest.
The Consolidation system supports all conventional methods for the consolidation of investments
including the various variants:
purchase method using the book value or revaluation method
pooling of interests using the book value method
proportional consolidation using the book value or revaluation method
equity valuation using the book value or proportion of equity method
In addition to the individual financial statement data, the consolidation of investments also
requires the input of additional data in the financial reporting tables. The system uses this data to
recognize the different business transactions, such as first consolidation, subsequent
consolidation, increase in capitalization or change in indirect investment. The generation of
automatic consolidation entries is influenced by the transaction.
SAP provides predefined consolidation methods. The component also allows you to define your
own methods to accommodate your individual requirements.
Selection criteria
You only gain access to the automatic functions of the Consolidation of Investments when this
Since, in this case, no consolidation of investments methods are maintained in the Consolidation
system, Subgroup Maintenance does not provide an option for assigning methods to the
companies. When processing the other consolidation activities, the system uses the purchase
method.
December 1999 69
Other Consolidation Functions
Other Consolidation Functions

Definition
You can select the functions reclassification and bundling of consolidation activities in addition to
the consolidation functions discussed previously.
70 December 1999
Reclassification
Reclassification
Definition
This component enables reclassifications between balance sheet and/or income statement items.
You can post complete or partial reclassifications.
Reclassifications require reclassification rules. You can define these rules according to your
individual requirements.
Selection criteria
You only gain access to the automatic functions of Reclassifications when this component is
selected. Otherwise, the entries may have to be posted manually.
December 1999 71
Bundling Consolidation Activities
Bundling Consolidation Activities

Definition
You can execute consolidation activities in so-called "bundles". Consolidation activity groups
must be defined, to which the bundled activities are allocated. The consolidation activity groups
are then assigned to the subgroups.
Selection criteria
Select the component if you wish to use the bundling function.
72 December 1999
Services
Services
Definition
This component includes additional functions that enable you to automatically transfer the data
into a new fiscal year or into another version.
December 1999 73
Balance Carryforward
Definition
Automatically carries forward the data into the new fiscal year. The data includes:
the local values and the balances of the standardizing and consolidation entries for all
balance sheet items, of which the statistical items are optional, and in certain cases
for individual income statement items
certain control tables
Selection criteria
It is recommended that the component always be selected for Consolidation.
74 December 1999
Copy Function
Copy Function
Definition
Enables you to copy company data. This can be helpful if you wish to test in a new version or if
you wish to copy a company to another ledger because it belongs to a subgroup which uses a
different group currency.
The following copying options are available:
from one ledger to another ledger
within one ledger, from one version to another version
within one ledger and one version, to another year or another period in a year
Selection criteria
Select this component if you intend to use the copy function.
December 1999 75
Remote Data Entry
Remote Data Entry

Definition
PC data entry programs based on MS ACCESS 2.0 and dBase, and interfaces for transferring
data from non-SAP systems are available for the remote entry of individual financial statement
data of subsidiaries and its transfer into the Consolidation system
The component encompasses all settings necessary for remote data entry in the Consolidation
system.
Selection criteria
Select this component if your group includes companies which maintain their financial statement
data locally (decentralized) in PC applications or other non-SAP systems, and intend to transfer
the data to the Consolidation system using the interfaces provided.
When deciding which PC data entry program to use, MS ACCESS or dBase, you should weigh
their advantages and disadvantages. You should especially take the following into consideration:
The MS ACCESS-based data entry program is a WINDOWS application, whereas the
dBase-based program runs under MS DOS.
Your PC must be equipped with MS ACCESS 2.0 in order to run the MS ACCESS-based
data entry program.
When using dBase-based data entry, the master data maintenance in the Consolidation
system is limited in regards to the assignment of keys for companies and financial
statement items.
MS ACCESS-based data entry has the following advantages:
An interface to MS EXCEL exists, which can be used to (a) automatically import data
from MS EXCEL into the data entry program and (b) transfer the data from the data
entry program into MS EXCEL for editing and reporting purposes.
As of Release 3.0D the MS ACCESS-based data entry includes user-defined
additional fields for Consolidation.
MS ACCESS-based data entry provides remote reporting capability.
76 December 1999
Data Entry with MS Access
Data Entry with MS Access

Definition
One option for locally entering individual financial statement data is to use a PC data entry
program with MS Access 2.0. Data for the subsidiary can be entered locally on a PC and
imported into the R/3 Consolidation system after validation.
This component allows you to define the relevant data entry forms and validations in the
Consolidation system, and to assign them to companies whose data will be entered
Selection criteria
The following technical requirements must be fulfilled by the company entering data:
As hardware, a 486 processor with 8 MB of main memory is a minimum.
The following software must be installed:
MS Windows or MS Windows NT
MS Access 2.0
MS Excel 5.0 (if the interface is used)
If the group headquarters uses MS Access 2.0 with a runtime version then it may not be
necessary to install MS Access 2.0 in all the reporting companies.
December 1999 77
Data Entry with dBase
Data Entry with dBase

Definition
One option for locally entering individual financial statement data is to use a PC data entry
program with dBase. Data for the subsidiary can be entered locally on a PC and imported into
the R/3 Consolidation system after validation.
This component allows you to define the relevant data entry forms and validations in the
Consolidation system, and to assign them to companies whose data will be entered decentrally
using dBase.
Selection criteria
The only technical requirements for each company is a PC running under MS-DOS. The
installation of the dBase program is not required.
78 December 1999
Data Entry on Non-SAP Systems
Data Entry on Non-SAP Systems

Definition
A flexible interface, as well as a number of interfaces with pre-defined data formats are available
for transferring data from non-SAP systems. You would need to use them in the following cases:
Where consolidation takes place at the parent company using the FI-LC system and the
subsidiaries use other systems. The necessary data sets from the subsidiaries must be
imported into the FI-LC system.
Where old data is to be transferred once only into the FI-LC system from the previously
used Consolidation system.
This component encompasses the definition of the flexible interface according to the layout of the
transferred data, and the allocation of the interface to the corresponding companies.
Selection criteria
Select this component for Consolidation if you intend to transfer data from non-SAP systems.
December 1999 79
Information System
Information System
Definition
The Information System within Consolidation allows you to prepare the data in the Consolidation
system and to generate reports thereon.
80 December 1999
Master Data, Financial Data, Control Parameters
Master Data, Financial Data, Control Parameters

Definition
For your reference, you can display and print Consolidation-related master data, financial
reporting data and control parameters. Numerous print programs are available.
Selection criteria
It is recommended that this component always be selected for Consolidation.
December 1999 81
Journal Entries
Journal Entries
Definition
As part of the creation of consolidated financial statements, value adjustments must be made to
the individual financial statement data using posting documents. Posting documents are created
for adjustment entries, company-pair elimination entries and subgroup-dependent entries.
You can print journal entry reports to evaluate these entries using sort sequences and
summarizations of your own choice.
The user can interactively modify the layout of the journal entry report. A number of standard
settings are delivered and available. Furthermore, you can define additional reports to
accommodate your specific requirements.
Selection criteria
82 December 1999
Standard Reports
Standard Reports
Definition
Because of the multitude of variants, one of the most complex tasks in the Consolidation system
is the preparation and presentation of the group and company data. You can generate reports
for various purposes and audiences.
December 1999 83
Totals Reports
Totals Reports
Definition
The reporting functionality of the FI Consolidation application includes the preparation and
presentation of group and company data. You can generate reports with totals record data for
various purposes and audiences.
Pre-defined totals reports are available. Furthermore, this component enables the user to define
custom reports according to user-specific requirements.
Selection criteria
It is recommended that this component always be selected for Consolidation so that at least the
standard reports may be used.
84 December 1999
Report Writer / Report Painter
Report Writer / Report Painter

Definition
The Report Writer and the Report Painter can be used to generate reports with Consolidation
data and data of other SAP applications.
You can create reports that meet the specific requirements for reporting.
The functions of the Report Painter are similar to that of the Report Writer. Most of the Report
Writer functionality has been implemented in the Report Painter. However, in order to operate
the Report Painter, you no longer need to learn the Report Writer concepts, such as sets.
Selection criteria
You should select this component if you require additional reports that exceed the functionality of
the totals reports in Consolidation. Both the Report Writer and Report Painter allow you to create
any type of report, accessing all of the fields in the database. For instance, you can report on
document types and additional fields, which is not possible in the totals reports.
December 1999 85
Interactive Reports
Interactive Reports
Definition
An screen-based, user-interactive querying program which accesses reporting data. The query's
initial screen usually accesses global information. From there, the user can interactively request
more detailed information.
The advantage of interactive group reports, as opposed to printed reports, is that they focus on
querying of information. Conventional lists can be voluminous, and therefore confusing,
depending on how detailed the FS chart of accounts is and how company ownership is broken
down.
Selection criteria
86 December 1999
Interactive Excel
Interactive Excel
Definition
Is a part of the integration of the R/3 application Consolidation with Microsoft Office products.
Interactive Excel offers you the capability of enhancing your corporate reporting.
Interactive Excel allows you to directly read Consolidation data from the R/3 system while using
MS Excel. You can then use the spreadsheet functions of MS Excel to further process the data.
This gives you additional capabilities for calculating, formatting and printing your data. As
opposed to downloading the data and using the XXL list viewer, with Interactive Excel you need
to format the reports only once. When Consolidation data changes in the R/3 system, your Excel
tables are automatically updated.
Selection criteria
Prerequisites for using Interactive Excel is a PC with MS Excel 5.0 and access to the R/3 system.
December 1999 87
Data Forwarding
Data Forwarding
Definition
You can create extract files with Consolidation data and forward these to other systems.
Particularly, you can forward data to another corporate group as a part of Step Consolidation, or
to the Executive Information System, SAP-EIS.
88 December 1999
Data Forwarding for Step Consolidation
Data Forwarding for Step Consolidation

Definition
In Step Consolidation, it is necessary to forward the consolidated subgroup data to higher-level
subgroups. This is accomplished with data extract files.
Selection criteria
Select this component for Consolidation if you intend to forward the data.
December 1999 89
Data Forwarding for EIS
Data Forwarding for EIS

Definition
In order to supplement the reporting in the application EC (Enterprise Controlling), you can
transfer Consolidation data to the Executive Information System SAP-EIS. The data is then
evaluated using EIS-specific reports.
Selection criteria
Select this component for Consolidation if you intend to forward the data to SAP-EIS.
90 December 1999
Accounts Payable
Accounts Payable
Definition
Subledger accounting that represents the business transactions with vendors.
Accounts payable accounting records and manages the accounting data for all vendors. It is also
an integral component of the purchasing system; deliveries and invoices are recorded for each
vendor. The system automatically posts data in response to these operating transactions.
Furthermore, the Cash Management component is supplied with values from these invoices in
order to optimize liquidity planning.
December 1999 91
Basic Functions
Basic Functions
Definition
These components enable you to choose the basic functions required for accounts receivable
accounting.
92 December 1999
Master Data
Master Data
Definition
Business transactions are posted to accounts and managed using those accounts. You must
create a master record for each account that you require. The master record contains
information controlling how business transactions are entered and processed in an account.
December 1999 93
Schedule Manager
Schedule Manager
Scheduler [Ext.]
Monitor [Ext.]
Worklist [Ext.]
94 December 1999
Invoice Parking
Invoice Parking
Definition
You can use invoice parking to enter and store (park) incomplete documents in the SAP system
without carrying out extensive entry checks. Parked invoices can be completed, checked and
then posted at a later date - even by a different data entry clerk.
The advantage of parking documents is that you can evaluate the data in the documents online
for reporting purposes from the moment they are parked rather than having to wait until they
have been completed and posted. In this way, for example, you can use amounts from parked
invoices for the advance return for tax on sales and purchases. Similarly, by using payment
requests, parked invoices can be paid on time and with full cash discount.
Selection criteria
Implement this component if you want to be able to enter invoices with unresolved account
assignments into the SAP system.
If a special release approval should be made for documents in document parking before they are
posted, you will have to define this procedure in the workflow for Financial Accounting. You will
then also have to implement SAP Workflow and the HR organizational elements.
December 1999 95
Invoices and Credit Memos

Definition
An invoice is a notice sent to the buyer of goods or services that contains the following
information:
the name of the goods or services
the quantity sent, and
the remuneration due.
A credit memo is a posting that decreases the balance of receivables or payables without
payment for a specific value and reason.
96 December 1999
Release for Payment
Release for Payment

Definition
In the release for payment component, you can block the payment of line items in a posting
document long enough to have the items successfully complete a payment release procedure
and receive approval for payment.
Selection criteria
To implement payment release, you must also choose the components for SAP Workflow and
the HR organizational elements. In both components and in Financial Accounting, you will have
to make settings for the payment release procedure.
December 1999 97
Manual Payments
Manual Payments
Definition
In contrast to the payment program, which automatically makes all payments in one payment run,
this component enables users to process each payment manually.
Settings must be made for the tolerance groups and for open item processing.
98 December 1999
Down Payments
Down Payments
Definition
Payment for goods or services not yet produced or rendered. Down payments are shown
separately from other receivables and payables on the balance sheet. A distinction is made
between down payments made (displayed under fixed and current assets) and down payments
received (displayed under payables).
In the FI system, you post down payments as special G/L transactions. When you post a down
payment to a customer account, the system posts the down payment to a reconciliation account
other than the standard reconciliation account.
December 1999 99
Bills of Exchange
Bills of Exchange
Definition
Promise to pay in the form of an abstract payment paper.
Bills of exchange are treated as special G/L transactions in the FI System. They are managed in
the subledger separately from other transactions and are posted automatically to special
reconciliation accounts in the general ledger. As a result, you can display an overview of bill
receivables and bill payables at any time. Generally speaking, you do not need to transfer any
special G/L postings when you prepare the balance sheet.
The following bill of exchange types can be posted in the FI System:
bills of exchange receivable
bills of exchange payable
incoming and outgoing checks/bills of exchange
Selection criteria
This component allows you to, for example,
keep an automatic bill of exchange list
generate a bill of exchange charges statement for the customer automatically, and
use automatic form printing for discounting bills of exchange.
You should only select this component if you have to process more than five incoming bills of
exchange per month.
100 December 1999

Payment Transactions
Definition
The processing of outgoing and incoming payments of an organization.
In this section, you choose the functions for the automatic payment program. The payment
program is designed so that both outgoing and incoming payments can be processed. These
functions are supported in the same way for both vendors and customers. All the usual payment
methods are set up in the standard system or can be set up within customizing.
December 1999 101

Dunning
Dunning
Definition
A defined procedure specifying how customers or vendors are dunned. The number of dunning
levels, the dunning frequency and the text for the dunning notices are specified for each
procedure.
Dunning is carried out automatically using the dunning program. The program determines the
accounts and items to be dunned, the dunning level of the account, and the dunning notice
based on the dunning level. You print the dunning notices using the print program. The dunning
data determined is saved in the items and in the accounts.
102 December 1999

Open Item Management

Definition
Selecting and activating open items are a part of processing open items. This is the last step
made before a clearing document is posted. When clearing documents are posted, the system
checks the tolerances set up for acceptable payment differences. Depending on the
configuration of your system, it will post minor differences between the debit and credit items to
an account for unearned deductions.
December 1999 103

Correspondence
Correspondence
Definition
A companys printed correspondence with vendors.
It includes all evaluations that are sent to vendors by post.
balance confirmations
account statements and open item lists in letter format
individual and form letters
documents
internal evaluations
104 December 1999

Definition
Interest on accounts payable can be determined by either calculating interest on the balance or
calculating interest on the arrears.
Interest calculation is controlled by the following specifications:
Data entered in the master record of the account, such as the interest indicator to be
used and information for determining the calculation period for the account.
Settings made under the interest indicator, for example, interest rates.
Options set at the time of interest calculation, including selection criteria, for example,
which limit the number of accounts included in the interest calculation.
December 1999 105

Closing Operations
Closing Operations
Definition
Preparation and execution of all procedures that are necessary for:
day-end closing
month-end closing
year-end closing
106 December 1999

Special Functions
Special Functions
Definition
The following special functions are also available in accounts payable accounting.
External documents
EDI
Selection criteria
You need these components if you want to use either external documents or EDI.
December 1999 107

External documents
External documents
Definition
This process allows accounting departments to enter and process documents for an external
SAP installation, and to store them in an operating system file. This file is then transported to
external systems (via E-mail or diskette) where it is imported to the appropriate database.
After processing and viewing a document, it can be selected and posted in an external system
using a batch input session.
Selection criteria
You only need these components if you exchange documents with external SAP systems and
post using batch input.
108 December 1999

EDI
EDI
Definition
In EDI, users can transmit standardized data electronically and further process it automatically.
Selection criteria
To use this component, you have to select the SAP EDI component. You need this component
only if you want to interchange data with other systems via EDI and have it automatically
processed in your system.
December 1999 109

Information System
Information System
Definition
With the accounts payable information system, you can perform analyses on specific business
aspects at any time and as often as you require. These analyses include, among other things,
evaluations of the currency exposure with vendors or the maturity structure with vendors.
Selection criteria
Select this component if you require other evaluations for the decision-making process, in
addition to the standard, legally required evaluations for accounts payable.
110 December 1999

Accounts Receivable
Accounts Receivable
Definition
Subledger accounting that represents the business transactions with customers.
All postings in Accounts Receivable are also recorded directly in the General Ledger. The
system will post to different G/L accounts depending on the transaction involved (for example,
receivables, down payments, bills of exchange). The system provides a range of tools which you
can use to monitor open items; for example, account analyses, alarm reports, due date lists and
a flexible dunning program. The printed material linked to these components can be individually
formulated by you to suit your requirements. This includes payment notices, balance
confirmations, account statements and interest settlements.
December 1999 111

Basic Functions
Basic Functions
Definition
Functions for processing manual payments, for tolerance groups and for open item processing.
112 December 1999

Master Data
Master Data
Definition
All business transactions are posted to accounts and are managed using those accounts. You
must create a master record for each account that you require. The master record information
controls how business transactions are entered and processed in an account.
December 1999 113

Schedule Manager
Schedule Manager
Scheduler [Ext.]
Monitor [Ext.]
Worklist [Ext.]
114 December 1999


Definition
An invoice is a notice sent to the buyer of goods or services that contains the following
information:
the name of the goods or services
the quantity sent, and
the remuneration due.
A credit memo is a posting that decreases the balance of receivables or payables without
payment for a specific value and reason.
December 1999 115

Manual Payments
Manual Payments
Definition
In contrast to the payment program, which automatically makes all payments in one payment run,
this component enables users to process each payment manually.
116 December 1999

Basic Functions
Basic Functions
Definition
This Basic Functions component enables the user to select the main functions for working with
special purpose ledgers.
Selection criteria
You must select this component in order to define the basic FI-SL data structures and to work in
the Special Purpose Ledger system.
December 1999 117

Payment Advice Notes (Incoming)
Payment Advice Notes (Incoming)

Definition
Payment advice notes provide the payee with information on the current open items and on any
changes made to them. The standard system offers the following types of payment advice notes:
payment advice from the lockbox
payment advice from the bank statement
payment advice that is created during a manual clearing procedure
payment advice that is manually entered
payment advice from a self-billing document
payment advice from the customer (EDI)
These payment advice notes are fixed in the system. That is, you are not able to add other types
of payment advice notes.
118 December 1999

Down Payments
Down Payments
Definition
Payment for goods/services not yet produced. Down payments are shown separately from other
receivables and payables on the balance sheet. A distinction is made between down payments
made (displayed under fixed and current assets) and down payments received (displayed under
payables).
You must report vendor down payments separately on the balance sheet as an asset. In the FI
system, you post down payments as special G/L transactions. When you post a down payment to
a vendor account, the system posts the down payment to a reconciliation account other than the
standard reconciliation account.
December 1999 119

Bill of Exchange
Bill of Exchange
Definition
Promise to pay in the form of an abstract payment paper.
Bills of exchange are treated as special G/L transactions in the FI System. They are managed in
the subledger separately from other transactions and are posted automatically to special
reconciliation accounts in the general ledger. As a result, you can display an overview of bill
receivables and bill payables at any time. Generally speaking, you do not need to transfer any
special G/L postings when you prepare the balance sheet.
The following bill of exchange types can be posted in the FI System:
bills of exchange receivable
bills of exchange payable
incoming and outgoing checks/bills of exchange
120 December 1999

Definition
The processing of the outgoing and incoming payments of an organization.
In this section, you choose the functions for the automatic payment program. The payment
program is designed so that both outgoing and incoming payments can be processed. These
functions are supported in the same way for both vendors and customers. All the usual payment
methods are set up in the standard system or can be set up within customizing.
December 1999 121

Dunning
Dunning
Definition
A defined procedure specifying how customers or vendors are dunned. The number of dunning
levels, the dunning frequency and the text for the dunning notices are specified for each
procedure.
Dunning is carried out automatically using the dunning program. The program determines the
subledger accounts and open items to be dunned, the dunning level of the account, and the
appropriate dunning notice based on the dunning level. You print the dunning notices using the
print program. The dunning data determined by the program is saved in the items and accounts.
122 December 1999


Definition
Selecting and activating open items are a necessary part of processing open items. This is the
last step made before a clearing document is posted. When clearing documents are posted, the
system checks the tolerances set up for acceptable payment differences. Depending on the
configuration of your system, it will post minor differences between the debit and credit items to
an account for unearned deductions.
December 1999 123

Correspondence
Correspondence
Definition
A companys printed correspondence with customers.
It includes all evaluations that are sent to customers by post.
payment confirmations
account statements and open item lists in letter format
individual and form letters
balance confirmations
documents
settlements of fees for bills of exchange
124 December 1999

Definition
You can calculate interest for G/L accounts managed with line item display using the account
balance interest calculation procedure. This procedure can be used, for example, if you want to
retroactively post an interest settlement from the bank into the accounting system.
When calculating interest for G/L accounts, a sorted list is created. The interest calculation run
can also be logged.
The following specifications control interest calculation:
Data from the account master records. This includes, for example, the interest indicator
to be used, and data for determining account-specific interest calculation periods.
Definitions made in regard to the interest indicator to be used including such specs as
interest rates.
Specifications made for interest calculation. These include the fact that account balance
as well as item interest calculation are possible.
December 1999 125

Closing Operations
Closing Operations
Definition
The preparation and execution of all procedures required in conjunction with the individual
financial closing process. These will affect the:
day-end closing,
month-end closing and
year-end closing.
126 December 1999

Special Functions
Special Functions
Definition
The following special functions are also available in accounts receivable accounting.
External documents
Invoice parking
Selection criteria
You need these components if you want to use either external documents or invoice parking.
December 1999 127

External Documents
External Documents
Definition
This procedure enables the accounting department to create documents for an external SAP
installation, to process these documents further, and to store them in an operating system file.
This file is transported to the external system via e-mail or disk, where it is imported into the
proper database.
After examining and, if necessary, further processing these documents, users can select them
and then post them using an internal batch input mode in the external system.
Selection criteria
You only need this component if you interchange documents with external SAP installations and
post them via batch input.
128 December 1999

Preliminary Postings
Preliminary Postings
December 1999 129

Credit Management
Credit Management
Definition
With the FI system you can set a credit limit for each customer. This limit is checked in the
accounting and sales departments every time a posting is made to that customer account. If the
amount being posted exceeds this limit, the system issues a warning. You can obtain information
on the customer's credit control limit etc. at any time by using the evaluations in the system.
You can set credit limits for a customer in either a single credit control area or in several. A credit
control area consists of one or more company codes.
When you post a customer invoice with the FI Financial Accounting application, the system
increases the following amounts (depending on the business transaction involved): the overall
receivables, receivables from sales and the special G/L transactions total. When you clear an
invoice item (after the incoming payment has been made), the system reduces the above figures
by the same amount.
Selection criteria
You must select this component if you want to have the system check the credit limit for you
customers. To use this component in Sales as well, you also have to select the credit
management component in that area. To make multiple credit limit checks, you must select the
SAP Workflow component.
130 December 1999

Information System
Information System
Definition
With the accounts receivable information system, you can perform analyses on specific business
aspects at any time and as often as you require. These analyses include, among other things,
evaluations of the customer payment history or cash discount history.
Selection criteria
Select this component if you want to use other evaluations for the decision-making process
besides the standard, legally required evaluations for accounts receivable.
December 1999 131

Asset Accounting
Asset Accounting
Definition
The Asset Accounting component makes it possible to
manage and update values for all fixed assets, and to
monitor the accounting procedures affecting fixed assets
The Treasury component is available for financial assets.
Selection criteria
Choose this component, if you want detailed management of your fixed assets in a separate
subsidiary ledger.
132 December 1999

Basic Functions
Basic Functions
Definition
These components enable you to choose the basic functions required for accounts payable
accounting.
December 1999 133

Asset Maintenance
Asset Maintenance
Definition
The component asset maintenance enables you to enter the master data for your fixed assets
in the form of individual assets. An asset, as defined here, is a part of the asset portfolio of the
enterprise and can be identified at a closing key date as an individual economic good in the long-
term service of the enterprise.
Selection criteria
This component is an integral part of the component Asset Accounting.
134 December 1999

Basic Valuation Functions
Basic Valuation Functions

Definition
The component basic valuation functions provides the functionality for determining the value of
all fixed assets at a given point in time according to legal regulations, and in addition, based on
rules you define yourself.
Selection criteria
December 1999 135

Depreciation Areas
Depreciation Areas
Definition
The component depreciation areas makes it possible to calculate parallel values for an asset for
different purposes (for example, book depreciation, cost accounting depreciation, and so on).
You can manage all necessary depreciation terms and values for each asset at the level of the
depreciation area. Since the system allows you to define an almost unlimited number of
depreciation areas, the number of parallel valuations is also unlimited. You can post the asset
balance sheet values and the depreciation values of the individual depreciation areas to their
own accounts in Financial Accounting.
Selection criteria
This component is an integral part of the component Asset Accounting, since at least one
depreciation area is required for legally stipulated depreciation.
136 December 1999

Derived Depreciation Areas
Derived Depreciation Areas

Definition
The component derived depreciation areas provides for the valuation of fixed assets on the
basis of relationships between existing values established by mathematical formulas (such as,
the difference between two areas). The system manages the values calculated in this way in a
derived depreciation area.
Derived depreciation areas are treated the same as real areas in reports and in their value field
display. You can also post the values of derived depreciation areas to Financial Accounting.
Selection criteria
Choose this component, if you need derived depreciation areas for evaluations or for the balance
sheet. You can use derived depreciation areas, for example, for
special reserves as the difference between book depreciation and tax depreciation
the difference between different types of tax depreciation
December 1999 137

Calculation of Interest
Calculation of Interest
Definition
Using the component calculation of interest, you can calculate the imputed interest on each
fixed asset, showing the interest lost on capital tied up in assets.
Selection criteria
Choose this component if you post imputed interest, and may also want account assignment of
this interest to cost centers.
138 December 1999

Period Control
Period Control
Definition
Using the component period control the system determines the start of depreciation calculation
when an asset is acquired, or the end of depreciation when the asset is being retired.
Particularly for acquisitions, there are specific regulations in many countries regarding the
determination of the date when depreciation becomes effective (asset value date) based on the
acquisition or retirement posting. SAP provides the most common rules, such as pro rata or the
first year convention. You can define your own user-specific rules.
Selection criteria
December 1999 139

Group Assets
Group Assets
Definition
The component group assets makes it possible to group together a number of fixed assets in a
depreciation area for the purpose of common, summarized calculation of depreciation.
Selection criteria
It may be useful to calculate depreciation at the group asset level for a number of assets for the
following reasons:
In order to follow tax regulations (such as ADR in the US), depreciation has to be
calculated at a level higher than that of the fixed asset (such as, all assets in a class and
vintage year).
From a Controlling perspective, it is sometimes useful to use a group of related assets
(such as a production line) for cost accounting analysis, rather than the individual asset
used for bookkeeping.
140 December 1999

Valuation Methods
Valuation Methods
Definition
The component valuation methods allows you to define your own methods for calculating asset
values. These methods are not hard-coded in the system. Instead they are based on a flexible
system of keys. In this way, it is possible to represent your own depreciation needs using
appropriately defined calculation keys and control parameters.
The calculation keys and parameters for the most common depreciation methods are pre-defined
in the system.
Selection criteria
December 1999 141

Fiscal Year Specifications
Fiscal Year Specifications

Definition
The component fiscal year specifications makes it possible to define the FI fiscal year with
different periods for calculating depreciation in Asset Accounting.
Selection criteria
Choose this component
when you do not want your depreciation periods to be identical with the posting periods
in the general ledger
when you are using or have used a shortened fiscal year
when you work with half periods, or
when depreciation posting should not be distributed evenly to the periods in the fiscal
year (but instead according to the 4-4-5 rule, for example)
142 December 1999

Alternative Fiscal Year Variants
Alternative Fiscal Year Variants

Definition
Using the component alternative fiscal year variants, it is possible to use a fiscal year version in
Asset Accounting that is different from Financial Accounting. However, it is still essential that the
start and end date of the fiscal year versions are the same in the FI general ledger and in the FI-
AA subsidiary ledger.
Selection criteria
A different fiscal year version may be necessary, primarily for the exact determination of the
depreciation start and end using the period controls of Asset Accounting. The reason is that
depreciation calculation only works with full periods. For example, you want to calculate a half
years depreciation for acquisitions after June 30, and the FI general ledger uses 13 ordinary
periods. Then depreciation would have to be calculated for 6.5 periods. However, this type of
period definition is not possible in the period control of Asset Accounting. Therefore, you need to
use a different fiscal year version in Asset Accounting, with 12 normal periods instead of the 13 in
FI.
December 1999 143

Shortened Fiscal Year
Shortened Fiscal Year

Definition
The component shortened fiscal year enables you to reflect shortened fiscal years, and the
subsequently changed depreciation, in Asset Accounting. A shortened fiscal year results when
the end of the previous fiscal year is changed. The shortened fiscal year covers the time period
between the end of the last fiscal year according to the old format, and the beginning of the first
fiscal year according to the new format.
You can specify in which areas depreciation should be proportionally reduced for the shortened
fiscal year.
Selection criteria
Choose this component if you are currently using a shortened fiscal year; or if you used a
shortened fiscal year in the past, and want the R/3 System to re-determine depreciation in
conjunction with the takeover of data from your previous system.
144 December 1999

Half Months
Half Months
Definition
Using the component half-months, you can double the number of periods for Asset Accounting,
if the basic number of depreciation periods is 12. When you enter the calendar date on which the
second half of the period begins (such as the 16th of the month), depreciation calculation can
begin and end in the middle of a period.
Selection criteria
Choose this component if you want to use half-periods in Asset Accounting.
December 1999 145

Period Weighting (4-4-5 Rule)
Period Weighting (4-4-5 Rule)

Definition
Period weighting enables you to enter a relative weight for the periods in a fiscal year version.
You can then distribute the planned annual depreciation in different amounts to the individual
posting periods. It is possible to distribute depreciation, for example, according to the number of
days or weeks per period (for the 4-4-5 rule).
Selection criteria
Choose this component if you do not want to post planned annual depreciation equally to the
individual periods in your fiscal year.
146 December 1999

Depreciation
Depreciation
Definition
The component depreciation allows you to manage the following types of depreciation in the
system:
ordinary depreciation
special depreciation
unplanned depreciation
transfer of reserves/reductions to APC
December 1999 147

Ordinary Depreciation
Ordinary Depreciation
Definition
The component ordinary depreciation makes possible the planned depreciation of your fixed
assets using defined depreciation methods.
Selection criteria
Choose this component if you want to manage ordinary depreciation in your system.
148 December 1999

Special Depreciation
Special Depreciation
Definition
The component Special depreciation enables you to use depreciation based on tax regulations
in addition to ordinary depreciation.
In general, this form of depreciation allows you to depreciate a percentage of the APC within a
tax concession period, without considering the actual wear and tear on the fixed asset. Tax
depreciation generally exceeds the usual book depreciation.
Selection criteria
Choose this component if you want to manage special depreciation in your system.
December 1999 149

Unplanned Depreciation
Unplanned Depreciation
Definition
The component unplanned depreciation enables you to make an unplanned value adjustment
based on a foreseeable permanent reduction in the value of an asset.
Ordinary depreciation reflects wear and tear due to the normal use of the asset. Unusual
circumstances, such as damage causing a permanent reduction in value, are reflected using
manual, unplanned depreciation.
Selection criteria
Choose this component if you want to manage unplanned depreciation in your system.
150 December 1999

Transferred Reserves
Transferred Reserves
Definition
The component transferred reserves allows you to transfer undisclosed reserves, which
resulted from gain on the sale of assets, to replacement assets. The gain on the sales reduces
the depreciation base of the newly acquired asset, or is shown as a special depreciation reserve
on the liabilities side.
Selection criteria
Choose this component if you want to manage transferred reserves in your system.
December 1999 151

Manual Depreciation
Manual Depreciation
Definition
This component enables you to manually forecast ordinary and special depreciation, in case it is
necessary to enter separate depreciation amounts. This component enhances the functions of
the component for unplanned depreciation. It provides for making manual value corrections for
the otherwise automatically calculated depreciation types ordinary depreciation and special
depreciation.
Selection criteria
Choose this component if you want to use manual depreciation in your system.
152 December 1999

Unit-of-Production Depreciation
Unit-of-Production Depreciation
Definition
The component unit-of-production depreciation allows you to calculate depreciation based on
units of production. For unit-of-production depreciation, monthly depreciation amounts are
calculated from the ratio of the actual number of units produced in the period to the total number
of units for the asset. This depreciation method takes operating variations account.
Selection criteria
Choose this component if you want to manage unit-of-production depreciation in your system.
December 1999 153

Transactions
Transactions
Definition
The component Transactions allows you to carry out posting transactions during the life of a
fixed asset in an enterprise.
154 December 1999

Acquisitions
Acquisitions
Definition
The component acquisitions makes it possible to
post acquisitions from suppliers while updating the appropriate general ledger accounts,
integrated with the vendor posting
post acquisitions from suppliers in conjunction with the ordering process in Materials
Management
capitalize your in-house production costs
carry out a check for the maximum amount for low value assets during the acquisition
posting
Selection criteria
December 1999 155

Down Payments
Down Payments
Definition
The component down payments allows you to capitalize down payments made to assets under
construction, and to clear them with the closing invoice.
Selection criteria
Choose this component if you want to manage assets and down payments made for them in
Asset Accounting.
156 December 1999

Retirements
Retirements
Definition
The component retirements enables you to
post the sale and scrapping of assets, while updating the general ledger accounts.
Posting of asset sales can be integrated with the customer posting
carry out mass retirements
specify the treatment of gain/loss from asset sales according to given bookkeeping
methods
Selection criteria
December 1999 157

Transfer Postings
Transfer Postings
Definition
The component transfers allows for gross transfer (with historical APC and value adjustments)
of the values of existing assets to other assets. These transfers can be within a company code,
as well as across company codes.
Selection criteria
158 December 1999

Settlement of Line Items for AUC
Settlement of Line Items for AUC

Definition
Using the component line item settlement of asset under construction you can collect costs on
an asset under construction and settle each line item to different receivers. You can collect costs
on an asset under construction as a technical measure, without considering the later creation of
assets. The individual acquisitions can be managed as open items over the course of several
fiscal years. They can be settled to various receivers when the asset under construction is
completed.
Selection criteria
Choose this component if you want your assets under construction to be managed as collective
assets with open item management.
December 1999 159

Manual Value Adjustment
Manual Value Adjustment

Definition
The component manual value corrections enables you to post write-ups and post-capitalization.
You can post gross post-capitalization to a separate master record with a separate depreciation
start date.
Selection criteria
160 December 1999

Posting Depreciation to the General Ledger
Posting Depreciation to the General Ledger

Definition
The component posting depreciation to the general ledger makes it possible to post
depreciation amounts calculated in Asset Accounting to the corresponding balance sheet
accounts and profit and loss accounts in Financial Accounting.
Selection criteria
December 1999 161

Validations
Validations
Definition
Using the component validation you can create your own checks for asset posting, in addition to
the standard checks. When you enter a validation rule, it consists primarily of the following parts:
condition, which determines when the check should be carried out (for example, if the
asset class is for low value assets)
validation rule, which cannot be violated (for example, the depreciation key must be
GWG1 or GWG2)
number of the error message, which should be output if the validation rule is violated
Selection criteria
Choose this component if you want to define additional checks for posting of given business
transactions.
162 December 1999

Closing Operations
Closing Operations
Definition
The component closing operations allows you to
carry out a fiscal year change at the start of a new fiscal year. This opens the new year
for asset posting.
close the old fiscal year and block it to further posting
Selection criteria
December 1999 163

Specific Valuations
Specific Valuations
Definition
The component special valuations allows you to calculate asset values for special purposes
(such as, insurance contracts).
164 December 1999

Reserve for Special Depreciation
Reserve for Special Depreciation

Definition
The component special reserves for special depreciation enables you to identify the difference
between valuation for tax depreciation and book depreciation in a derived depreciation area. You
can use the values from this derived depreciation area to create a special reserve for the balance
sheet.
Selection criteria
if you have special tax depreciation and
you want to show book depreciation on the assets side of the balance sheet, while
showing special tax depreciation as special reserves on the liabilities side of the balance
sheet (or in an appendix to the balance sheet)
December 1999 165

Indexed Replacement Values
Indexed Replacement Values

Definition
The component indexed replacement values enables you to calculate replacement values for all
fixed assets, and to depreciate them based on these replacement values. The replacement
values are determined using index series.
Selection criteria
Choose this component if
you want to use depreciation from the replacement value in your cost accounting (for
example, as a basis for calculating prices)
you want to determine or post the revaluation of assets resulting from the indexing
166 December 1999

Handling of Inflation
Handling of Inflation
Definition
The component handling of inflation makes it possible to carry out upward revaluation for the
balance sheet. This procedure reflects regulations in certain countries which require one-time
revaluation of all fixed assets in order to compensate for inflation.
Selection criteria
Choose this component if the tax laws in your country require you to revalue all assets at given
intervals.
December 1999 167

Investment Support
Investment Support
Definition
The component investment support is concerned with the handling of government subsidies for
particular fixed asset investments. The subsidy can be treated as a reduction of the acquisition
value of the asset, or as a value adjustment on the liabilities side. You can show the amount of
the support separately from the actual acquisition and production costs of the asset.
Selection criteria
you receive investment subsidies and
you do not have to treat the subsidies as revenue. Investment support measures that
are relevant to revenue can be handled directly in the general ledger. They do not have
to shown in Asset Accounting.
168 December 1999

Net Worth Tax
Net Worth Tax

Definition
The component net worth tax makes it possible to calculate asset values in relation to net worth
tax requirements. These values can be used when determining the amount of net worth tax.
Selection criteria
Choose this component if you are required to report net worth tax in your country, and this
requires a separate depreciation area.
December 1999 169

Insurance
Insurance
Definition
The insurance component allows you to manage insurance master data and insurance values.
You can manage the current insurance values in the asset master record, or in a separate
depreciation area. You can also increase or decrease the insurable value using index series.
Selection criteria
Choose this component if you need separate valuation of assets for insurance in a separate
depreciation area.
170 December 1999

Leasing Processing
Leasing Processing
Definition
The leasing processing component is for capitalizing leased assets using the capital lease
procedure. The system uses the present value of future lease payments as the acquisition value.
Selection criteria
if you have leased assets, and
you have to capitalize these assets due to tax regulations in your country
December 1999 171

Group Requirements
Group Requirements
Definition
The component preparations for consolidation is for preparing for legal consolidation of assets
on the basis of Asset Accounting data.
Selection criteria
if your firm belongs to a corporate group required to carry out legal consolidation, and
the corporate group requires data prepared in Asset Accounting for this consolidation
172 December 1999

Historical Group Currency
Historical Group Currency

Definition
The component historical group currency makes it possible to manage depreciation in any
currency (such as, group currency) in Asset Accounting. These currencies may be needed for
consolidation or reporting requirements. In this way, you can have decentralized, historical
currency conversion.
Selection criteria
Choose this component if you want to manage values in Asset Accounting in foreign currencies,
using historical rates of exchange.
December 1999 173

Group Valuation
Group Valuation
Definition
The parallel group valuation component makes it possible not only to determine amounts in
foreign currencies for group consolidation, but also to use bases for valuation (APC/depreciation
terms) that are different from the local valuation.
Selection criteria
you have to provide Asset Accounting data for group consolidation, and
your local requirements for valuation differ from those of the corporate group
174 December 1999

Intercompany Profit / Loss due to Asset Transfer
Intercompany Profit / Loss due to Asset Transfer

Definition
The intercompany profit/loss due to asset transfer component allows you to represent asset
transfers (between subgroups) from the point of view of the corporate group. For this purpose, it
is possible to
represent the business transaction from the viewpoint of the subgroups as an acquisition
or retirement, but as a transfer from the viewpoint of the corporate group
eliminate the gain/loss on the part of the selling subgroup from the viewpoint of the
corporate group
Selection criteria
if you have to provide data from Asset Accounting for the group consolidation
you need to record asset transfers between subgroups
December 1999 175

Information System
Information System
Definition
The component Information system contains a series of standard reports, along with functions
for modifying the Asset Accounting information system to your individual requirements.
176 December 1999

Standard Reports
Standard Reports
Definition
The standard reports component contains a series of standard reports on fixed assets, which
can be adapted to your individual needs.
Selection criteria
December 1999 177

Individual Report Selection
Individual Report Selection

Definition
The component user-specific report selection is for representing the information system of
Asset Accounting in the form of the report selection tree. The report selection tree is a freely-
definable hierarchical structure. The nodes of this tree are used to call up reports. Each user
can create his own user-specific report tree, containing only those reports the user can execute.
Selection criteria
178 December 1999

Report Links
Report Links
Definition
The component report links makes it possible to jump to a different report from a report you are
in. The system starts the second report using the same selection options used in the initial
report. When you started the second report on a totals line, you can break down the total in the
newly displayed report. For example, you can create the individual transaction list for an item in
the asset history sheet.
Selection criteria
Choose this component if you want to change the standard reports. This is particularly important
if you want integrate your own reports in the report links in the Asset Accounting information
system.
December 1999 179

Individual Asset History Sheet Versions
Individual Asset History Sheet Versions

Definition
The user-specific asset history sheet version allows you to freely define the lines and columns
of any number of asset history sheet versions. In addition, you can determine which asset
transactions are shown in which asset history sheet items.
Selection criteria
180 December 1999

Conversion Methods for the Info System
Conversion Methods for the Info System

Definition
Conversion methods for the Info system make it possible to show asset values in standard
reports in any foreign currency. The conversion takes place using a conversion method that can
be defined. The most important parameter in this calculation method is the point in time (for
example, the capitalization date or key date), which is used for determining the currency
exchange rate.
Selection criteria
you want to create asset reports in a foreign currency, and
there is no depreciation area available for this purpose
December 1999 181

FI - Special Purpose Ledger

Purpose
In the application component Special Purpose Ledger, you can define ledgers for reporting
purposes. You can keep these user-defined ledgers as general ledgers or subsidiary ledgers with
various account assignment objects. Account assignment objects can either be SAP dimensions
from various applications (such as account, cost center, business area, profit center) or
customer-defined dimensions (such as region).
The Special Purpose Ledger allows you to report at various levels using the values from the
various application components. The modules in the Special Purpose Ledger allow you to collect
information, combine information, and create totals. You can also modify, assess, and distribute
actual and plan values that are transferred from other SAP applications or external systems to
the Special Purpose Ledger.
The use of the Special Purpose Ledger has no effect on the actual functions of other SAP
applications.
SD
dat al
ern
MM
a
Ext
CO
FI
Correction-
FI-SL
postings
Information
Information system
system
(Report
(Report Painter
Painter // Report
Report Writer)
Writer)
Features
The use of the Special Purpose Ledger offers the following advantages:
Flexible database structures with additional fields
You can create your own database tables and define non-standard dimensions (such as
valuation area) that meet your business needs. With this you are able to combine and
total information for each account assignment combination at the desired level of detail.
Selective data retrieval
182 December 1999

Data flow is flexible in the Special Purpose Ledger. With the assignment of transactions
to specific company code/ledger company/ledger combinations, you decide which
ledgers are to be updated by the data created. You can further limit the number of
ledgers that are updated by entering ledger selection criteria.
Correction postings
In the Special Purpose Ledger you can make adjustment and correction postings. You
are able, for example, to post data to various versions. Correction postings, for example,
are useful for valuating currencies.
Alternative charts of accounts
You can use various charts of accounts in the Special Purpose Ledger (operating, group,
and country-specific charts of accounts).
Alternative fiscal year with various fiscal year variants
In the Special Purpose Ledger, you can define your own posting periods. Accounting
period definitions determine the fiscal calendar, which defines the fiscal year and the
posting periods within the fiscal year.
If you define your own posting periods, you could then create weekly or monthly reports.
Specific modifications for data creation
If you want to ensure that only valid data is received by the Special Purpose Ledger, you
can use validations and substitutions to check and substitute data at the time it is
entered.
Totaled line items from other applications
With the broad function palette of the Special Purpose Ledger, you can total, modify,
asses, or distribute actual and plan data from SAP and external applications.
SAP reporting
With the Special Purpose Ledger, you can evaluate data from various SAP applications
and organizational units and report on this information.
Constraints
The Special Purpose Ledger (FI-SL) is a receiver system to which data created in other SAP
applications is sent. It is not a sender system for other SAP applications.
December 1999 183

Master Data
Master Data
Definition
The following master data is used in the Special Purpose Ledger system:
Tables
Ledgers
Customer-defined characteristics
Sets
Integrated master data
Selection criteria
You must select this component in order to work with the Special Purpose Ledger system, since
the basic FI-SL data structures are created here. Before you set up your FI-SL system and
define your master data, you must determine which reports you want to create using the FI-SL
system. It is very important that you take the time to thoroughly plan the data structures you
require. A carefully planned design leads to efficient running of your productive system and
improves system performance.
In general, it makes sense to select this component only in combination with the components
Table Definition and Installation and Integration Interface.
184 December 1999

Tables
Tables
Definition
Structures for arranging data in table form. The Special Purpose Ledger system uses the
following types of database tables:
Object tables (for account assignment characteristics and transaction attributes)
Object tables enable the user to create tables with more than 16 user-defined dimensions.
In the object table for account assignment characteristics, the variable dimensions can be used
as object dimensions (receiver) and/or partner dimensions (sender).
Summary tables
The business transactions entered in the FI-SL system are updated as totals in the summary
tables.
Actual and plan line item tables
The document lines of the business transactions entered in the FI-SL system and the planning
changes made are stored as line items in the actual and plan line item tables.
Selection criteria
You must select this component to define your own data structures that form the basis for
working with the FI-SL system. At this level, you determine how and to what extent the data you
require is to be accumulated and output.
December 1999 185

Ledger
Ledger
Definition
A ledger is based on any combination of the elements in the coding block. Totals as well as
other figures are stored in a ledger for reporting purposes. Special purpose ledgers are defined
according to specific business and organizational requirements. They contain the dimensions
specified by the user.
When creating a special purpose ledger, the following criteria may be used:
Time (years, quarters, months, weeks, days)
Dimensions or combinations of dimensions
Control parameters (local ledger, global ledger)
Currency (transactions currency, second currency, third currency)
Quantities and/or additional quantities
Via integration interfaces, all special purpose ledgers can use functions such as planning,
allocation, rollups, currency translation, balance carry forward and data transfer, in addition to the
activity-oriented validation, derivation, and accumulation of data. Data can be posted to special
purpose ledgers from other SAP applications, external systems as well as by direct entry into the
Special Purpose Ledger system.
Selection criteria
You have to select this component if you have created and installed your FI-SL database tables
and you want to define your special purpose ledgers. Each FI-SL database table is divided into
individual logical units (special purpose ledgers).
186 December 1999

Code Combinations
Code Combinations
December 1999 187

Sets
Sets
Definition
Structure in which specific values or value intervals are summarized under a set ID. These
values refer to one or more dimensions in a database table. A dimension represents a specific
criterion in a business process. Sets are used throughout the entire Special Purpose Ledger (FI-
SL) system.
Selection criteria
You have to select this component if you want to work with the following modules in the Special
Purpose Ledger system:
Planning
Allocation (assessment/distribution)
Rollups
Currency translation
Reporting
Boolean logic rules
188 December 1999

Integrated Master Data
Integrated Master Data

Definition
All master data created for FI-SL dimensions and other SAP applications. Master data whose
dimensions are affected by direct posting and other FI-SL functions must be validated. When
data is transferred to the special purpose ledgers, a comprehensive check takes place in the
source system to ensure that the data is consistent in all systems. The master data parameters
of the sender systems are used in the special purpose ledgers to extend the account
assignments (cost center, article, and so on).
Selection criteria
Master data validation is only used in FI-SL internal activities (for example, when entering data
directly in FI-SL, in planning, in assessment/distribution, during currency translation and for texts
in reporting).
December 1999 189

Table Definition and Installation
Table Definition and Installation

Definition
Defining FI-SL database tables involves determining which dimensions are to be included in the
tables. It must also be determined how or to what extent the data is to be collected and output.
To ensure that the database tables can be updated with data from the FI-SL programs, the tables
must be activated and installed after they have been defined.
Selection criteria
You must select this component to ensure that your database tables can be used as FI-SL tables
in the Special Purpose Ledger system. You should usually select this component in combination
with the component Master Data.
190 December 1999

Direct Data Entry
Direct Data Entry

Definition
This component enables data to be entered directly into the Special Purpose Ledger system.
The majority of the data intended for the special purpose ledgers is usually posted from other
SAP systems (FI, CO, SD,...). It may be necessary, however, to enter data directly into the FI-SL
system. This normally takes place for one of the following cases:
Adjustment postings and standardizing entries
External data transfer via batch input
Posting documents whose balance does not equal zero
Entering statistical information, which for example, is only relevant to quantities
December 1999 191

Planning
Planning
Purpose
With the Planning function in the Special Purpose Ledger [Ext.], you can enter and distribute plan
data to create budgets, forecasts, and other reports.
You can quickly and easily enter large amounts of plan data. Generally, you can enter plan
amounts in the following ways:
You can enter amounts as plan totals that are (automatically or manually) distributed to the
planning periods.
You can enter amounts as period amounts that are automatically totaled.
You can enter a combination of both totals and period amounts.
Entry Distribution Entry

of of of
plan totals plan totals period
amounts
Summation
Summation of
of period
period amounts
amounts
For information on creating plan data, see Creating Plan Data [Ext.].
Before you can complete planning in the Special Purpose Ledger, you have to set up planning in
Customizing. For more information, see Setting Up Planning [Ext.].
Integration
You can transfer plan data from the following SAP components to complete planning:
Overhead Cost Controlling (CO-OM)
Profitability Analysis (CO-PA)
To transfer data, choose Accounting Financial accounting Special Purpose Ledger
Periodic processing Data transfer CO plan data object/document or CO-PA plan data.
CO plan data is only posted directly to FI-SL when a plan version is defined for the
ledger to which the CO data is to be posted. If you want to post planning data to a FI-
SL ledger, you must maintain a plan version for the ledger in Customizing.
Additionally, you have to activate plan integration in Controlling Customizing.
Features
The following options are available in Special Purpose Ledger planning:
192 December 1999

Planning
Your planning can be completed centrally or decentrally. When setting up planning, you
provide a framework for the individual planners and assign authorizations. You can also
adapt the entry screen layout.
You can use Microsoft Excel to enter the data. The individual planners can enter their plan
data using Microsoft Excel. You can then import this plan data to the SAP System. See Excel
Integration in Planning [Ext.].
You can post plan data to a nearly unlimited number of forecast versions per year. You
define plan versions in Customizing under Accounting Financial Accounting Special
Purpose Ledger Planning Plan Settings Maintain Plan Versions [Ext.].
You can use existing actual and/or plan data (for example, from previous years) as a
reference for a new plan. To do so, choose Accounting Financial accounting Special
Purpose Ledger Planning Copy model plan Local or Global. See Using a Model Plan
[Ext.].
You can compare actual and plan data
You can display totals records of your plan data. Choose Accounting Financial accounting
=Special Purpose Ledger =Planning Display totals. See Displaying Totals Records
[Ext.].
You can display individual plan documents. Choose Accounting Financial accounting
=Special Purpose Ledger =Planning Display plan documents.== Local or global plan
documents. See Displaying Plan Documents [Ext.].
With the allocation functions, you can assess or distribute plan data. To do so, choose
Accounting Financial accounting Special Purpose Ledger Planning Planned close
Plan assessment or Plan distribution.
With rollups [Ext.] you can summarize plan data.
December 1999 193

Assessment
Assessment
Definition
Business activity used to allocate quantities and amounts (actual and plan values) from one
sender object to one or more receiver objects. The assessment process posts the sender
amounts to an assessment account. The system then allocates the amounts from the
assessment account to the receiver(s), but does not allocate directly from the original sender
account.
The quality of company-specific evaluations can be significantly improved through the flexible
assessment of values.
Selection criteria
In assessment, you not only work with values and value intervals, but also with sets in order to
allocate data from a sender to a receiver. You should therefore select this component in
combination with the component Sets.
194 December 1999

Distribution
Distribution
Definition
Business activity used to allocate quantities and amounts (actual and plan values) from one
sender object to one or more receiver object(s). The distribution process distributes the
balance(s) from the original sender(s) to the receivers. The original sender account is credited
and the original receiver account is debited with the allocation.
The quality of company-specific evaluations can be significantly improved using the flexible
distribution function.
Selection criteria
In distribution, you not only work with values and value intervals, but also with sets in order to
distribute data from a sender to a receiver. You should therefore select this component in
combination with the component Sets.
December 1999 195

Rollup
Rollup
Definition
Summarizations which define how data is summarized into a rollup ledger. Since the Special
Purpose Ledger system uses many different types of ledger, it is possible to use ledgers that
contain different levels of detail and/or different dimensions. For some high-level reports and
specific evaluations, a ledger may contain too much detailed information or may contain
dimensions that are not needed in a report. This information can be summarized into a rollup
ledger. By summarizing the data, the rollup helps the user attain improved processing times in
reporting.
Selection criteria
Since rollups use sets for selecting the data that is to be summarized into the rollup ledger, you
have to select this component in combination with the component Sets.
196 December 1999

Definition
Business activity for converting values that were posted to local and global ledgers in the Special
Purpose Ledger system.
Currency translation can take place in the FI-SL system after the data has been updated. If
required, amounts can be revaluated and translated after a posting has been made using criteria
defined by the user.
Selection criteria
Since currency translation uses sets to determine the values that should be translated, you have
to select this component in combination with the component Sets.
December 1999 197

Definition
As in the G/L Accounting, the balances of accounts (actual and planning values) can be carried
forward from the previous year to the opening balance of the current year.
You can carry forward:
balance sheet account balances from the previous year to the current year
the profit and loss account balance from the previous year to the retained earnings
account of the current year
198 December 1999

Data Transfer
Data Transfer
Definition
Using Data Transfer, data can be transferred from the FI, CO, MM and SD systems and from
external systems into the Special Purpose Ledger. The FI-SL system uses standard programs
for transferring data from other systems.
Special purpose ledgers use a standard interface when updating data from external systems.
The transfer of external data is required when external information is to be combined with SAP
data or when the Special Purpose Ledger system is to be set up independent of the other SAP
applications.
December 1999 199

Integration Interface
Integration Interface
Definition
The totals that are updated in the special purpose ledger mainly result directly or indirectly from
business transactions that were entered in various areas of the company. Therefore, internal
and external data can be combined in any way for the purpose of creating totals in special
purpose ledgers.
Data can enter the FI-SL system in any of the three following ways:
from other SAP applications (FI, AM, MM, CO and SD)
When data is updated from other SAP applications, the user defines which business
transactions update the special purpose ledgers: postings from Financial Accounting,
transactions in Materials Management, order settlements, and so on. In doing so, the
user decides how and which ledgers are to be updated by which activity. Based on the
rules and selection conditions that the user defines, the activities are validated, the data
is summarized, and one or more ledgers is updated.
by direct data entry (using the FI-SL document entry function for adjustment postings)
from external systems (for the transfer of external data)
Selection criteria
You have to select this component in order to set up a fully integrated FI-SL system. You should
select this component in combination with the components Master Data and Table Definition
and Installation.
200 December 1999

Validation, Substitution and Rules
Validation, Substitution and Rules

Definition
The validation and substitution components enable data to be validated or substituted at the
original point of entry in either the Special Purpose Ledger system or other SAP applications.
The standard SAP system does not need to be changed in order to carry out validations or
substitutions. When installing the system, the user can define exactly which validations and
substitutions are necessary to ensure data consistency.
December 1999 201

Validation
Validation
Definition
Process of checking values and value combinations that are entered in the SAP System. The
entered values are checked against a logical statement (prerequisite) defined by the user. If the
statement is true, the values are checked against an additional Boolean statement (check
statement). If the check statement is true, the data is posted. If the check statement is false, the
system outputs a user-defined message. The message type determines whether the posting can
be made.
Since the validation takes place before the posting is made, only data that has been checked will
enter the Special Purpose Ledger system.
Selection criteria
Almost all data entering the SAP System can be validated and checked against tables and
master data, regardless of whether the Special Purpose Ledger system is installed. However,
many types of validations cannot be standardized. That is why it is only necessary to select this
component if you want to define your own additional validations to check your data.
202 December 1999

Substitution
Substitution
Definition
The process of replacing values that are entered in the SAP system, but for which a different
value or dimension should be used in the FI-SL system. The entered values are validated
against a logical statement (prerequisite) defined by the user. If the statement is true, the
appropriate values are replaced.
Substitution takes place before the data is updated in the FI-SL summary tables.
Selection criteria
You have to select this component if you also want to replace values with other values when
validating data. For example, you can replace a specific product with a product group.
December 1999 203

Rules
Rules
Definition
A Boolean statement to which other rules or statements can refer. Rules can be used in the
following areas:
Validation
Substitution
Ledger selection
Report Writer selection
Rollups
Selection criteria
When you select this component, you can define complex Boolean statements as rules. Using
the rule name, you can refer to frequently used Boolean statements.
204 December 1999

Information System
Information System
Definition
The Special Purpose Ledger Information System enables the totals and lines items defined by
the user to be evaluated in the form of reports. Such reports are created according to the
company-specific requirements. Using the information system, the user can report on data from
the Special Purpose Ledger system and from other SAP applications.
December 1999 205

Funds Management
Funds Management
Purpose
The functions in this component support you in creating budgets. The tasks of Funds
Management are to budget all revenues and expenditures for individual responsibility areas,
monitor future funds movements in light of the budget available, and prevent budget overruns.
You can adapt the budget to changes in conditions by entering releases, supplements, returns,
and transfers.
Integration
Funds Management is fully integrated with other components in the R/3 System. Which
component is used in each case depends on the specific requirements of your organization. A
basic requirement for use of Funds Management is integration with the General Ledger
Accounting (FI-GL) component.
Integration with Materials Management means that you can, for example, reproduce and monitor
procurement transactions from start to finish.
Integration also ensures that all the data you need to manager your budget is available as and
when you need it.
For detailed information on which data from other components can be updated in Funds
Management, read Actual and Commitments Update [Page 213].
Features
Funds Management enables you to keep a precise check on:
The revenues and expenditures or funds-relevant business transactions in your business
Your budget, with the following questions in mind:
What funds will the responsibility areas receive?
Where do these funds come from (source of funds)?
What are the funds used for? (Application of funds)
The financial equilibrium of your business, by comparing commitment and actual values with
the current budget.
See also:
System Settings for Funds Management [Ext.]
Supplemental Documentation [Ext.]
206 December 1999

Basic Data
Basic Data
Purpose
This component offers all the functions for reproducing the budget structure of your organization
in Funds Management. The organization is split accounting to organizational and functional
viewpoints:
You must set up the following master data according to your individual requirements:
Funds centers
Funds centers are used to represent organizational units (areas of responsibility,
departments, projects) and are arranged in a hierarchy.
Commitment items
Commitment items are used to represent functional aspects (expenditure and revenue
structures) in a hierarchy. They are used to split budgets according to contents and
business transactions affecting liquidity into revenue items and expenditure items.
You can use funds to subdivide budgets.
Funds and applications of funds.
With funds enable you to create an exact proof of origin and application of funds. You
can use funds to manage funds from secondary sources.
Integration
Links Between the Basic Data in Different Components
With the SAP system, you can create a wide-ranging, flexible link between the basic data in
Funds Management and the basic data in other components.
Define a commitment item in the G/L account

Assign the FM account assignment (commitment item, funds center, fund) to
a CO account assignment (cost element, cost center, WBS element, order,
profit center)
Assign funds center or fund to HR master record
These links keep data entry work to a minimum. Entering an FM account assignment is optional.
The system derives the FM account assignment from the relevant assignment. The posting data
relevant to Funds Management can be passed from the feeder systems to Funds Management
automatically.
Cash Budget Management, Project Cash Management, and Funds

Management
Cash Budget Management and Project Cash Management use the same
commitment items as Funds Management. If you are using either of these two
December 1999 207

Basic Data
components as well as Funds Management, remember that changes made to the

basic data affect both components.
Features
Maintaining Master Data
Commitment item hierarchy
The recording of posting data from the Funds Management feeder systems is controlled
by means of the control parameters in the commitment item master records, as is how
they are displayed in reporting.
Funds center hierarchy
Funds and applications of funds
Status Management
By activating status management, you can control the commercial transactions in Funds
Management for:
Individual combinations of commitment items, funds centers, and funds
Individual objects, such as all commitment items or all funds centers
Class Maintenance
You can use the Class System functions in Funds Management to manage a wide range of
information which you cannot define in the master records themselves.
Constraints
The system does not log changes to hierarchy relationships between commitment items and
funds centers in change documents. For this reason, you must not make any changes to the
hierarchy once you have gone live with Funds Management.
208 December 1999

Budgeting and Availability Control

Purpose
This component supports with your functions the budget creation process and the monitoring of
available funds.
Budgeting
The budget is allocated according to a defined budget profile and various budget versions. You
can allocate overall budgets or annual budgets. You can only allocate an overall budget if you
are using a fund.
With the functions of this component, you can allocate your budget on the top-down principle or
the bottom-up principle. You define the basic rules for the budget allocation in the Budget
Structure [Ext.], a procedure which makes allocating budgets at central level or local level easy.
The rules defined in the budget structure include which responsibility area (funds centers) may
use the budget for which expenditure categories (commitment items) and how the budget may be
distributed within the budget hierarchy to the individual funds centers and commitment items.
You can adapt the budget to changes in conditions by entering releases, supplements, returns,
and transfers.
Availability control
Within the budget execution framework you can claim the assigned funds for expected
expenditures via Earmarked Funds [Ext.] Postings in the Funds Management feeder systems,
which refer to these earmarked funds, establish obligations (commitments such as a purchase
order) and actual data (such as through invoices and payments) incurs. These forms of budget
usage are known collectively as assigned funds.
The funds management can use the information system to compare budget usage and funds
currently available. In addition to the funds overview in the information system, which acts as a
passive availability control, the component includes an active availability control facility whose
functions prevent budget overruns.
Integration
Availability control influences the posting procedures in Funds Management - earmarked funds,
funds transfers, budget transfers, supplements - as well as the posting procedures in the
components integrated with Funds Management. For further information on which components
are integrated with Funds Management, see Actual and Commitment Updating [Page 213]
When you enter an activity, such as a purchase order, which is assigned to a funds center and
commitment item, the system checks whether the budget or released funds available are
sufficient.
If you have Controlling [Ext.] integrated use with Funds Management, availability
control can be active both in Funds Management and in Controlling orders and
projects.
For performance reasons, you must decide in which component you want to activate
it.
December 1999 209

Features
This component offers
A wide range of tools for maintaining budgets:
Maintain different budget versions in the Payment Budget [Ext.] and Commitment
Budget [Ext.] .
Maintain budget texts
Use releases to control budget assignments
Use supplements, returns and transfers to update budgets
Displaying periodic budgets

Fine-tune budget monitoring:
Execute availability control against releases
Execute availability control against annual budget or overall budget
Tolerance limits
The defining of tolerance limits allows for an individual definition for each commitment
item, funds center, and fund for individual transaction groups (such as purchase order,
actual posting).
The degree of budget usage (percentage or absolute) from which the system reacts
How the system reacts: With a warning, with a warning and a mail to the budget
manager, with an error message which rejects the posting.
210 December 1999

Postings
Postings
Purpose
This component contains the functions needed to process business transactions in the budget
execution.
The posting data is stored as totals and as line items.
Earmarked funds
Using Earmarked Funds [Ext.]aspects of both revenues and expenditures of funds are handled.
In doing so you can, on the one hand, take expected revenues into account and the incoming
budget funds linked to them. On the other hand, you can earmark the appropriate funds for
expected expenditures, for which the exact application of funds does not have to be known.
Using budget blocks you can completely block access to already allocated budget This budget is
no longer available for other business transactions.
Funds transfers
Using funds transfers you can transfer assigned funds which are in a particular Funds
Management account assignment, to other Funds Management account assignments.
Integration
Integration with Other Components in the R/3 System
Within the framework of budget execution you can claim the earmarked budget funds both via the
business transactions in accounting and via purchasing. The earmarked funds are reduced by
financial accounting documents or purchasing documents. In doing so, the budget is consumed.
Desired function Required components
Reducing earmarked funds with purchasing Purchasing
documents
Reducing with financial accounting documents G/L accounting, accounts payable accounting,
accounts receivable accounting
Illustrating an approval process SAP Business Workflow
The graphic [Ext.] represents the options you have for reducing the earmarked funds by financial
accounting documents and purchasing documents.
With other Funds Management components
Dependent on the valid update profile, earmarked funds affect the budget. Earmarked funds take
part in the active available control(AAC) when they are created and reduced. The AAC checks if
the available budget is still sufficient according to the defined tolerance limits. For more
information, see Availability Control Settings [Ext.].
Earmarked funds are displayed in the information system as commitments.
Features
Expenditures:
The SAP system provides several ways of claiming budget for particular purposes:
December 1999 211

Postings
Funds reservations
Funds precommitments
Funds commitments
Together with Workflow this allows you to differentiate assigned funds of the budget and to
monitor and control budget usage efficiently. For more information see Earmarking Budget for
Expected expenditures [Ext.]
Funds blocking
Revenues: Forecast of revenue
Transfers Funds transfers
212 December 1999

Recording Actual and Commitment Data

Purpose
Funds Management (FI-FM) uses data from various application components in the SAP System,
particularly Financial Accounting (FI), Materials Management (MM), and Human Resources (HR),
to reproduce certain business processes.
Posting data from the other components flows into Funds Management. There, it is recorded as
commitment or actual data and can be displayed in the information system. So, for example,
posting an invoice receipt leads to the payment obligations being updated in Funds Management.
Funds Management differentiates the data according to how advanced processing is in the
system. All data which is entered up until the point of invoice receipt or invoice issue is
commitment data, such as purchase orders and purchase requisitions. All other data is actual
data. Data is recorded on the basis of one of the update profiles [Ext.] we deliver with the
system.
This component supports you when you integrate Funds Management with other R/3
components in line with your own requirements.
FI
TR-
FI-
FM
fuenn gt
fm asuinf g
e
rosccuhraec
in hka
B n.peuEr
P MM
who
Pr pu
o
w
o c rc
ith
ur ha
FI Commitment
Obligo
e m s in
en g Raeviseel keo
internal
activities
e
CO
Int
Tr
ACTUAL
FI-
HR
TV-
xp
steennses
Re
ve
SD
nu
es
s
ource
norneasl-
um
P er
a s g
H ntin
FI accou
HR
Features
Integration with Other Components in the R/3 System
Integration Requirement
December 1999 213

Financial
Accounting
G/L account postings General Ledger Accounting (FI-
GL)
Accounts payable Accounts Payable (FI-AP)
Accounts receivable Accounts Receivable (FI-AR)
Asset postings Fixed Assets Management (FI-AA
Travel expenses Travel Management (FI-TV or
PA-TV)
Personnel Administration (PA-
PA)
Controlling
Actual assessment Overhead Cost Controlling (CO-
OM)
Actual line item reposting
Actual primary cost reposting
Actual distribution
Indirect activity allocation
Order settlement
Actual accrual calculation
Actual activity allocation
Materials
Management
Purchase requisition Purchasing (MM-PUR)
Purchase orders External Services (MM-SRV)
Goods receipts Inventory Management (MM-IM)
Goods issues
Invoice receipts Invoice Verification (MM-IV)
Plant
Maintenance
Plant maintenance orders Maintenance Processing (PM-
WOC)
Project
System
Networks Operative Structures (PS-ST-
OPR)
214 December 1999

Sales and
Distribution
Billing Sales (SD-SLS)
Shipping (SD-SHP)
Billing (SD-BIL)
Human
Resources
Payroll accounting Payroll Accounting (PA-PY)
Personnel Administration (PA-
PA)
The postings which cause expenditures in the R/3 System or lead to a payment
commitment cause a number of documents to be generated in Funds Management.
To generate them, the system uses information from the financial accounting
document which, for example, is generated when a purchase requisition or purchase
order is generated. For postings in other components to be passed on to Funds
Management, you must have General Ledger Accounting (FI-GL) in use.
Integration with Other FI-FM Components
When you post documents in the Funds Management feeder systems, they are subject to active
Availability Control [Ext.]
The Materials Management (MM) component is used for processing purchase

orders. Funds Management is fully integrated with MM. When you post a purchase
order, availability control checks whether sufficient budget is available. If it is, the
posting data is passed automatically to Funds Management and displayed in the
information system [Page 220] as expenditures, under Purchase orders. If there is
not enough budget, the system rejects the purchase order.
December 1999 215

Additional Functions
Additional Functions
Purpose
This component makes all the functions available which you require for fiscal year-change
operations and revenues increasing the budget.
Features
Closing operations [Page 217]
Revenues Increasing the Budget [Page 219]
216 December 1999

Closing operations
Closing operations
Purpose
This component allows you to prepare and execute all year-end closing operations. These
include carrying forward of open commitments (commitments carryforward) and a differentiated
carryforward of unused budgets (budget carryforward of residual budgets) from the old fiscal year
to the new. You use the closing operations to display budgets and assigned values by period.
Old Fiscal Year New Fiscal Year
Carryforward residual
Residual bdgt budget from old fiscal
year
31.12.
Open Open cmmts

commitments brought forward
You perform the closing operations in a series of steps which you must carry out in sequence.
The commitment carryforward always reflects the current state of the data in the Funds
Management feeder systems. However, there is no automatic link to the closing operations in
other components. This means that changes made to documents in other components are not
reflected in Funds Management after you have carried out the closing operations in Funds
Management. For this reason, we recommend you do not carry out Funds Management closing
operations until you have completed the closing operations in the other components.
There is no technical necessity for carrying out closing operations for the fiscal year change. If
you do not, budget already used remains in the old fiscal year and cannot be used in the new
fiscal year. Open commitments are correctly reduced in the old fiscal year if you process them
further in the new. (For example, a purchase order from 1997 can be reduced by an invoice
arriving in 1998.)
The carryforward from commitments and budget is, in principle, dependent on the Update Profile
[Ext.] chosen. Specified in the update profile is whether a carryforward is even possible and for
which value types (e.g. purchase orders, earmarked funds, invoices) a carryforward may take
place.
December 1999 217

Closing operations
Features
You can simulate the tasks to be carried out at the fiscal year change and can schedule them for
different dates, regardless of when your fiscal year actually ends. A number of report programs
are available for the commitment and budget carryforwards. For more information, read
Programs for Closing Operations [Ext.].
Commitments carryforward
You can apply various selection criteria, such as individual funds centers, particular FM
Account Assignments [Ext.] or individual documents. The definition of carryforward
parameters and carryforward rules allows you to exclude many Value Types [Ext.] or FM
account assignments from a carryforward or to carry out account assignment changes.
You can reverse the commitment carryforward for individual documents.
Budget carryforward
Budget for commitments
You can carry forward budget into the new fiscal year, which has become available
due to a commitment carryforward into the new year.
Residual budget
The defining of carryforward parameters and rules allows you to achieve individual
control of residual budget carryforward, thus ensuring that account is taken of
changes to the organizational structure. In the new fiscal year, you can distribute the
residual budget to one or more receivers. It is possible to carry forward partial
amounts.
Balance carryforward in fund
If you work with funds and have allocated an overall budget across several fiscal years,
the balances carryforward in funds will allow for an overview of the balances in the funds.
Unlike the commitment carryforward, this involves summarizing and carrying forward
actual data.
218 December 1999

Revenues Increasing the Budget
Revenues Increasing the Budget

Purpose
This component comprises the functions with which you can increase existing expenditure
budget for particular functional areas due to Additional revenues [Ext.].
Integration
In order for revenue postings to function as budget-increasing, you must use the Financial
Accounting components G/L accounting and Accounts receivable accounting.
Features
Distribution rules [Ext.]
Rules which define which share of a revenue should function as budget-increasing for
which expenditures FM account assignment(s) form the basis.
The rule also determines the FM account assignment, the so-called surplus FM account
assignment, into which residual revenues flow, which do not function as budget-
increasing on the expenditure FM account assignments.
Options for which event allows a budget increase
At the time of the customer invoice or not until the time of the incoming payment.
You can choose to increase the budget automatically or manually
Evaluations
Comparing current budget - budget from revenues
Budget deficit display
Distribution rules list
December 1999 219

Information System
Information System
Purpose
You can use the information system to analyze the business transactions relevant to Funds
Management. This means it is possible, for example, to generate overviews of the budgets (such
as approved and released budget), budget usage (actual and commitment values), and the
residual budget (that is, budget still available) in your organization.
You can carry out both recurring standard evaluations and also create reports for any specific
questions and tasks. You can analyze all data interactively directly after entering it into the R/3
System and trace its origin up to document level. You can also run all reports available online in
the background. This is particularly useful with very comprehensive datasets.
Integration
The components you need depend on the type of evaluations which you want to carry out.
Components needed for the information system
For analyzing/using... ... you need the (FM) component

Master Data Indexes Basic Data
Totals Record Reports Budgeting and Availability control/Commitment and actual updating
Line item reports Budgeting and Availability control/Commitment and actual updating
Year-end closing Closing operations
Analyses Commitments and actual updating; possibly also FI and MM
Depending on the type of integration, you also need other components, such as CO if you are
using original data from CO for assessments.
Features
Master Data Indexes
You generate master data indexes to:
Obtain an overview of the master data created.
Display the assignment of the Funds Management master data objects to master data
objects from other components.
For more information, see: Master Data Indexes [Ext.].
Totals records
You generate totals records reports to provide an overview about the cumulated status of your
data. You can look at the line items belonging to each totals record report.
For more information, see: Totals Record Reports [Ext.]
Line items
You generate line item reports to obtain a more detailed representation of the postings executed.
You can display the respective original document directly from the list of line items found.
220 December 1999

Information System
Line items are generated for each posting. They contain information on the FM account
assignment, the amount posted, the posting date, and the user who made the posting.
Line item reports are usually represented in Funds Management with the ABAP List Viewer. This
enables you to select both the selection criteria and the fields to be displayed in the list
individually.
For information on the standard line item reports in Funds Management, see: Line Item Reports
[Ext.]. For information on the ABAP List Viewer, see: ABAP List Viewer [Ext.].
Year-end closing
You generate the report on year-end closing to obtain an overview of the closing operations
carried out when the fiscal year changes.
The reports on year-end closing display the commitments carried forward, the budget assigned to
these commitments and the other carryforward budget. You can branch from the commitments
carried forward into the corresponding line items and the document display from the report on
year-end closing.
Analyses (matching)
You can use these reports to compare documents from different counters and to specify
differences if desired.
December 1999 221

FI

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

FI

Uploaded by

Copyright:

Available Formats

FI Component Short Description

Copyright 2000 SAP AG. All rights reserved.

SAP, SAP Logo, mySAP.com, mySAP.com Marketplace, mySAP.com Workplace, mySAP.com

FI Component Short Description.......................................................................9

Consolidation Procedures .............................................................................................. 55

Bills of Exchange.......................................................................................................... 100

Half Months............................................................................................................. 145

Direct Data Entry ............................................................................................................... 191

FI Component Short Description

FI General Ledger Accounting

Quantity Value P.O.

G/L Account Master Records

Chart of accounts INT

Germany Great Britain USA

Company code 1000 Company code 2000 Company code 3000

Standard G/L Account Maintenance

Cross-Company G/L Account Maintenance

G/L Account Postings

Open Item management

FI Closing and Reporting

Account Business Area Amount

Foreign Currency Accounting

Preparation for Consolidation

Assignments and Data Transfer

Transfer of Legacy Data

Business Area Consolidation

Preparations in Financial Accounting

Preparations in Asset Accounting

Preparations in Materials Management

Company Code Consolidation

Centralized Data Entry

Online Data Entry

Automatic Data Transfer

Data Transfer Monitor

Consolidation Step Monitor

Elimination of IC Profit / Loss in Inventory

Elimination of IC Profit / Loss in Transferred Assets

Other Consolidation Functions

Bundling Consolidation Activities

Remote Data Entry

Data Entry with MS Access

Data Entry with dBase

Data Entry on Non-SAP Systems

Master Data, Financial Data, Control Parameters

Report Writer / Report Painter

Data Forwarding for Step Consolidation

Data Forwarding for EIS

Invoices and Credit Memos

Release for Payment

100 December 1999

December 1999 101

102 December 1999

Open Item Management

December 1999 103

104 December 1999

December 1999 105

106 December 1999

December 1999 107

108 December 1999

December 1999 109

110 December 1999

December 1999 111

112 December 1999

December 1999 113