General Ledger Process Overview Transaction Processing Master Data General Ledger Account Analysis & Reconciliation Reporting Financial Accounting Periodic Processing

General Ledger Process Overview Transaction Processing And External interfaces Master Data GL Accounts Ledger Entries Taxes, Banking Accruals (Operational) Account Analysis & Reconciliation Balance Sheet Income Statement Cash Flow Month End Close Vendor Invoices (Expense) Customer Invoices (Revenue) Asset Transactions (Capital and Depreciation) Master Data Vendor Master Master Data Customer Master Master Data Asset Master Reporting And Consolidation BI and BPC Controlling Cost Allocations 10K, 10Q

SAP Account Receivable lifecycle

SAP Account Receivable Lock box processing

Manual Check Deposit - Activity Flow

Manual Check Deposit - Procedure Electronic / Manual Entry Temporary Database Check deposit list General Ledger Documents Sub-Ledger Documents Check

Check Deposit - Account Assignment Check Deposit List Customer Account Incoming checks Account O.b.) 200,-200,- (1 1) 200,- 200,- (2 2) 200,- Bank Account Postings

Asset processing Purchase Order Financial Document Asset Under Construction Expense Settlement Project WBS Element 1 WBS Element 2 WBS Element 3 Transfer Impairment Disposal Sale { Asset #1 Class 123 Asset #2 Class 456 Depreciation Expense PS AM

Asset processing Project Systems Completed capital projects become assets Fixed Asset Financial Accounting AM transactions impact balance sheets and P&L statements Lease Cost Lease information automatically creates transactions Joint Venture JV assets operated will be managed by Asset Management Controlling Depreciation expense charged to cost canters Procurement Assets acquired via vendor

Planning MasterData Actual Posting Period End Closing Reporting Controlling Processes Planning preparation Cost Centre Planning Internal Order Planning Plan cost distribution Plan cost assessment Plan indirect activity allocation Plan settlement of overhead cost orders Reposting Actual Cost distribution Actual Cost Assessment Cost Splitting Calculate Actual Activity Prices Settlement of Overhead Orders Manual Cost Allocation FICO Reconciliation  Cost Element  Cost Centre  Activity Type  Resource  Statistical Key Figures  Internal order  Groups  Manual entries  SKF entry  Direct activity allocation  Indirect activity allocation  Order budget

Aspects of Profitability Management Revenue 2000 Discounts 100 COGS 230 Contr. Margin 1440 Revenue 2000 Salaries 468 Materials 230 Profit TelecomPharmaEthylenePower Advertising 250 Profitability Analysis By Market segment (Market oriented) Responsibility Accounting (Company oriented) Profit Centers PCA PA Segments External Market Profitability