Overview of SAP-FI

Introduction
 The SAP Financial Accounting (FI) module provides integrated,
on-line, real-time functionality for processing, recording and
maintaining the financial accounting transactions of the business
for external reporting purposes.

 Financial accounts are the records of the financial dealings of the

business, their every day transactions.

 The main role of financial accounting is to:

Record financial transactions; e.g. collecting money from sales, paying
suppliers, salaries and wages.

Prepare key financial documents such as P&L statement, Balance

Sheets on a regular basis
mySAP ERP Solution Map
Benefits of SAP-FI
 Key benefits of Financial Accounting in mySAP ERP:

 Determine the value of and record financial data as the basis for all cost
and revenue reporting
 Generate a balanced set of books by business unit, profit center, or any
other reporting dimension in your organization
 Analyze profitability by product, market, customer, service, or channel
segment
 Optimize cash flow through improved billings, receivables, collections,
payments, and treasury management
Sub-Modules of FI
 General Ledger

 Accounts Receivable

 Accounts Payable

 Banks

 Fixed Assets

 Special Purpose Ledger

SAP Hierarchy Structure
FINANCIAL MATERIALS MANAGEMENT
Bus. Area
Sto.Loc.
Company 1000
Plant 0001
0001
Bus. Area 0001
Sto. Loc.
2000
Client 0002
Company
Bus. Area
3000 Code Sto. Loc.
Company Plant 0003
0002 0002

Company Plant
0003 0003

SALES & DISTRIBUTION Company Code

Sales
Organization 1000 2000 3000

Distribution
Channel 10 20 10 10

Division 01 02 01 02 01 02 01
Client (Organizational Structure)

Client

General Electric
 Client - Company Code
(Organizational Structure)
Client

General Electric

Company Code Company Code Company Code Company Code

Aviation Services Lighting Appliances Aircraft Engines
Client - Company ID -
Company Code
Client
GE

Company ID Company ID
Consumer
Aviation
Products

Company Company Company Company

Code Code Code Code
Aircraft Aviation
Lighting Appliances
Engines Services
Client - Chart of Accounts -
Company Code
Client
General Electric

Chart of Accounts Chart of Accounts

CAUS CAEU

Company Code Company Code Company Code

Aircraft Engines Aviation Services Global Finance
Company Code Definition
General Data

Company Code: USXX Company Name: IBM

City: Philadelphia Country Key: US
Currency: USD Language: E

Global Data

Accounting Organization Processing Parameters

Chart of Accounts CAXX Field Status Variant 0001
Credit Control Area CCXX Posting Period Variant XXXX
Fiscal Year Variant K4
Accounting Organization Data
Fiscal Year Variant
Fiscal Year Variant Description
K2 Calendar year, 2 special periods
K4 Calendar year, 4 special periods
V3 Fiscal year, 4 special periods

Properties of Fiscal Year Variant “K4”

Fiscal Year Definition
The Fiscal Year

13 14 15 16
 The fiscal year c
as...
12 01  Year-independen
11 02
 ==> the same n
10 03 for the periods
09 04  Year-dependent
08 05  ==> periods ca
07 06 year

 SAP AG 1999
General Ledger Account Master
Records
 A General Ledger Account master record contains information about
the account that controls how business transactions are posted to it and
how it is managed.

 “Account”
A record in the general ledger that is used to collect and store similar
information.
 Rental Expenses
 Sales Revenues
 Cash Account
 Loans Account
G/L Account Master Record
The FI Document
 The system is based on the Document Principle which
states that every business transaction creates a
document.

 Each and every business transaction is recorded in

SAP by means of an FI Document

Some common transactions for FI Documents are

 F-02: Enter GL Account Posting

 FB03: View FI Document
 FB02: Change FI Document
 FB50: Enter GL Account Posting
 FB60: Enter Vendor Invoice
 FB70: Enter Customer Invoice
The Document Principle
One financial transaction generates one FI document
with a unique Document Number.

Invoice - SD Document - FI
Number: 999 Number: 9999999999

To: ABC Sandwiches Line items:

From: Fruits & Vegetables Ltd.
DR. ABC Sandwiches $60
1 box of tomatoes $60 CR. Sales Revenue $60

Total $60
Structure of a Document
Document Header
Document Number Document Type
Posting Date Company Code
Document Date Currency

Line Item 1
Posting Key Account Amount

Line Item 2
Posting Key Account Amount

Debits = Credits
Document Types
Posting Key

Posting Key Description Debit/Credit Account Type

01 Invoice Debit Customer
40 Debit Entry Debit G/L Account
50 Credit Entry Credit G/L Account
15 Incoming Pmt Credit Customer
Document Entry - Enjoy Posting
Clearing Line Items
Open items are incomplete transactions, such as a vendor invoice
which has not been paid.

In order for an open item transaction to be considered complete, the

transaction must have been cleared.

Customer ABC
(1) 2,000.00 5,000.00 (3)

(2) 3,000.00

Can Be Cleared
Clearing an Account
1
Line Item Tables in Clearing
Customer BSID BSAD
Items

Vendor
Items BSIK BSAK

G/L
Items BSIS BSAS
Q &A