1. Configuring the Financial Accounting System

2. Slide 2 Note As you work through the configuration process, I STRONGLY suggest that you follow along with the SAP IMG Help at http://help.sap.com/saphelp_46c/helpdata/en /e0/71369adc56d11195100060b03c6b76/fra meset.htm http://help.sap.com/saphelp_46c/helpdata/en /e0/71369adc56d11195100060b03c6b76/fra meset.htm

3. Slide 3 The Client At the top of the food chain is the client (instance) Remember that we have different clients for development, test, production, etc… A client can have many companies Financial accounting is a key building block in the organization and usually configured first Remember, financial accounting is for external constituents and reporting

4. Slide 4 The Company Code A company code comprises a legal entity and is structured from a financial accounting perspective Financial statements are produced at this level Financial accounting cannot be carried below the company code level

5. Slide 5 The Company A company has one or many company codes A company is used to aggregate company codes for purposes of consolidated financial statements Company codes must use the same fiscal year and COA to belong to a company Fitter / Snacker has a single company and company code

6. Slide 6 The Chart of Accounts (COA) It’s the chart of accounts you know from accounting We can create custom COAs or use those created for us by SAP Every account in a COA belongs to an account group

7. Slide 7 G/L Account Groups All G/L accounts belong to an account group The assigned account group controls the behavior of the account Balance sheet accounts P/L accounts Etc.

8. Slide 8 Configuring Fiscal Periods All companies have a fiscal year Fiscal years might not correspond to actual years The fiscal year variant is used to configure the regular periods and any special posting periods We can create custom fiscal year variants

9. Slide 9 Configuring Fiscal Year Periods (2)

10. Slide 10 Credit Control Area An SAP organizational unit responsible for maintaining customer credit limits A Company Code has exactly one credit control area One credit control area can be responsible for many company codes

11. Slide 11 Financial Accounting Assignment Fiscal Year variant must be assigned to a COA COA must be assigned to company code Credit Control Area must be assigned to a company code

12. Slide 12 A Word about Controlling Accounting (CO We will do this later as we first need to set up the organizational structures to which we will assign costs