SAP Financial Reporting Aims & Objectives –Introduction to SAP financial modules –Understanding of SAP cost objects –Overview of University accounting structure –Outline of available reports –Confidence in using reports

SAP Help Documentation ISS website SAP on-line help Superusers Helpdesk  33333

What is SAP? Enterprise Resource Planning system SAP world’s largest ERP software supplier Based in Walldorf, Germany Implemented at Leeds in April 1999 Continuing programme of development

Components of SAP

Reporting Requirements Income & Expenditure Balance Sheet Cash Flow Department Costs Project costs Costs v plan Financial Accounting Financial Accounting Management Accounting Management Accounting

SAP Finance Modules Financial Accounting External Accounting Financial Statements Legal Requirements Standards Controlling Internal Accounting Cost Reporting Management Accounting Flexible FI CO

Components of Controlling Overhead Cost Controlling How high are the costs of organisational activities? Are they within budget? CO OM CO OM Cost & Revenue Element Accounting What costs occur within our organisation? CO CEL CO CEL Profit Centre Accounting How profitable are the enterprise areas? EC PCA EC PCA

SAP Cost Objects Used to track where costs occur within the organisation Cost Centres Internal Orders Project System WBS Elements CO & PS Controlling & Project System Cost Objects } Balance Sheet Profit Centres

Cost Centres An organisational unit within SAP to which costs (and income) can be assigned Six digit number e.g Used to track costs of departments/major activities

Cost Elements Used to collect and summarise costs according to classification Five digit number e.g Main ranges: to 49999External Income to 69999External Costs to 74999Internal Income to 75999Internal Costs to 89999Secondary Transfers

Cost Element Groups Cost elements can be combined into groups of the same type Used to create reports Standard reporting group REP_01 Displays costs within main University budget headings Example KAH3 - Display cost element group

Cost Centre Structures (1) Standard hierarchy Tree structure containing all cost centres Reflects University accounting structure Core activities - DC Other services - DS Restricted funds - OR Endowment funds - EN Research awards - RG

Cost Centre Structures (2) Department Codes AUVI - Media Services CSER - Careers INSS - ISS LACE - Language Centre LIBR – Library Example: DC-RC-LIBR – Library core activities

Cost Centre Structures (3) Academic Services LibraryISS SAP Support SAP Projects Careers Can report on individual cost centres or groups of cost centres Alternative cost centre groups

Cost Centre Structures (4) Examples OKENN - Display cost centre standard hierarchy KSH3 - Display cost centre group

Internal Orders Cost object used to monitor costs at a detailed level Eight digit number e.g Linked to cost centre – provides sub-analysis Simplifies cost centre structure Used to track costs of individual activities e.g. projects, short courses

The Internal Order/ Cost Centre relationship Internal Order Internal Order Internal Order COST CENTRE Many to One Relationship

Internal Order Groups Orders can be grouped into a structure Many levels as required Maintained by departments – no standard hierarchy Used for planning and reporting

Internal Orders RC_HECS TEACHINGRESEARCH OTHER Internal Orders Internal Order Groups TEACHING DIRECT TEACHING OTHER

Internal Orders Examples KO03 - Display internal order master data KOH3 - Display internal order group

Reports Cost centre reports Internal order reports Report navigation Printing reports Exporting to Excel