Accounting in SAP R/3vepaIntelligroup, Inc. - Proprietary
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vepaIntelligroup, Inc. - Proprietary
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SAP stands for Systems Applications and Products in Data
Processing
R/3 stands for Real Time, Three tier architecture( Presentation,
Application and Data Base)
Presentation server is the front end
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General Ledger
Accounts Receivable
Accounts Payable
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SAP FI component is fully integrated with the following
modules
Materials Management
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Financial Accounting-GL
Consolidated Balance Sheet and Profit and Loss Accounts of group
companies
Balance Sheet and Profit and Loss Account can be drawn in different
currencies like Local currency, Group company currency and Company
code currency
Different Financial Statement Versions to meet the requirements of
Legal and Managerial Purposes
Balance Sheet and Profit and Loss Account as per
Product/Division/Branch
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Financial Accounting.. continued
In built system controls for validation and posting of the
data
Authorization profiles ensures strict compliance with Internal
Control Procedures of the management
Planning at GL level
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Automatic generation of postings for bank charges,taxes and
discounts etc.,
Automatic carry forward of year end balances to the next year
Revaluation of foreign currency items through program with
necessary adjustment postings.
Interest is automatically calculated by the system on bank,customer
and vendor balances and entry is generated with an option to post
or not to post
Speedier entry of transactions through g-l fast entry screens,
sample documents etc.,
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For recurring expenses like insurance,rents etc., recurring entries
can be defined.
These can be scheduled and jobs are automatically generated on the
scheduled dates and get posted
Work flow concept facilitates paper less office. Documents entered
can be passed on to superiors through workflow for approval and
postings.
Additional four posting periods for year end closing
operations.
Automatic regrouping of vendor debit balances and customer credit
balances at the year end.
Grouping of customer,vendor and g-l accounts through work lists to
know the total balances
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Flexible reporting system covering various parameters , which can
be defined dynamically.
Tracking of security deposits and guarantees to customers and
vendors through special g l indicators.
Automatic translation of currency in case of foreign currency
transactions and fluctuations are posted automatically
Automatic generation of depreciation entries.
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FI-Accounts Receivable and Payable
Vendors dues and settlement of accounts possible with a single
stroke through Automatic Payment Program
Vendor can also be defined as customer and net balance can be
arrived at effortlessly
Vendor accounts are blocked for payment for quantity and quality
rejections
System ensures that credit policy of management is strictly adhered
to through Credit Management
Timely reminders on customer over dues ensures effective monitoring
of customer dues
Customer and Vendor evaluations can be done on the basis of due
date break down, currency risk, DSO analysis
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FI-Banks
Electronic transfer of bank data in to SAP R/3 system facilitates
speedier reconciliation of bank accounts ensuring the accuracy of
the bank accounts
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FI-Asset Accounting
Simulation of book and tax depreciation for subsequent years
facilitates tax planning
Posting of depreciation in Group currency and Company code currency
and with different terms simultaneously possible to meet reporting
requirements
Tracking of movement of assets between plant to plant, location to
location and among asset groups ensures better control over
assets
A snapshot picture of entire asset history can be known at any
point of time
Various reports facilitate explanations for year end closing
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FI-Consolidation
Consolidation of companies, business areas , profit centers is
possible in SAP
This facilitates viewing of the financials of the company thru
different angles for analysis and decision making purpose and also
to meet internal management and external statutory
requirements
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Special Purpose Ledger
Special Purpose Ledger is a reporting tool which enables the
management to create its own reports spanning across different
modules.
Alternative fiscal years with different posting periods can be
defined for weekly monthly reports. For example, for accounting
purposes, calendar year may be used but for tax reporting financial
year may be required. In such cases, Special Purpose Ledger can be
used .
SPL is a receiver system and not a sender system
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Funds Management
Budgets all revenues and expenses to individual areas of
responsibility (fund centers)
Information is available against Budget Vs Actual
Early warning system on reaching stipulated percentage of
utilization of budgeted amounts or absolute amounts
Facilitates budget supplements, transfers and releases
Sources meant for budget can be identified and fixed thereby
preventing unauthorized use
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Travel Management
Travel Management covers the entire gamut of travel from request
for the trip, travel plan , advance and accounting of travel
expenses after the trip is completed
It is integrated with HR,FI,CO and Funds Management modules
Information about the persons as to where they are, the cost of
trip etc. can be obtained online
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Technically the set of data base tables
Highest in the organization structure
Company Code:
Chart of Accounts:
List of GL accounts in a structured manner. Chart of Accounts must
be attached to a company code
A chart of accounts can have more than one company code
Company code can be assigned to only one chart of accounts
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Integration FI-MM
In materials management each material is assigned to valuation
class in the material master.
Each valuation class is linked to general ledger accounts through
automatic accounts assignments.
For all types of material movements like, goods receipt, goods
issue, transfer postings. Relevant stock/consumption clearing
accounts are automatically updated.
Vendor Invoice verification is done through the system ensuring
compliance with the terms and conditions of the purchase
order
At the time of invoice verification, vendor/freight/tax accounts
are automatically updated.
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Integration with SD
Sales and distribution module’s integration with FI is vital as
they provide the source of revenue to the organization.
In SD , pricing is defined by means of pricing elements which in
turn refers to individual condition types. Each condition type is
attached with an account key, which is linked, to a general ledger
account.
Pricing elements like basic prices, discounts and surcharges, taxes
and freight automatically passed on to respective general ledger
accounts.
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Integration with CO
In controlling, expenses and revenue accounts of the financial
accounting module are treated as primary cost elements.
For each primary cost element, there has to be a corresponding
general ledger account.
The system checks, at the time of creation of primary cost element,
whether a corresponding general ledger account exists. If the
account does not exist, the primary cost element can not be
created.
On line updating of cost centers/production orders at the time of
document entry itself.
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Integration with Asset Accounting
In asset accounting each asset is attached to an asset class.
Asset class consists of master data.
Each asset class is linked to general ledger account, which is a
reconciliation account, through account determination key.
Thus, the assets are maintained in the asset accounting module and
the summary values are reflected in general ledgers.
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