1. SAP ERP Finance & Controlling Solutions

2. Financial Accounting Scope items

3. Accounting General Ledger Accounting Supports the accounting requirements of an organization by providing a complete record of all business transactions and financial reporting for multiple accounting standards. Accounts Receivable is an integral part of bookkeeping which helps manage transactions with customers and company business partners, and is an integral part of sales processes. Accounts Payable is an integral part of bookkeeping which helps manage transactions with vendors and company business partners, and is an integral part of purchasing processes. Period-End Closing in Financial Accounting Includes those processes required to close the books and prepare financial reports; accruals and reversals, foreign currency revaluations; balance confirmations with customers and vendors. Cash Management Covers a number of functions, including determination of liquidity based on bank account balances (cash position) and open receivables and payables (liquidity forecast) and more. Asset Accounting Manages and supervises fixed assets. It serves as a subsidiary ledger to the General Ledger, providing detailed information on transactions involving fixed assets. Asset Acquisition for Constructed Assets (Investment Orders) Involves the accumulation of costs during the building or construction of fixed assets and the capitalization of costs at the completion of construction. Cost of Sales Accounting Compares the sales revenues for an accounting period with the costs involved in the production of the sold products. Activate Document Splitting Enables you to assign one or more segments (e.g. cost/profit centers) to financial postings for current or future managerial reporting needs, and is a prerequisite for Segment Reporting.

4. Accounting (Contd) Segment Reporting Provides a breakdown of data in financial statements by individual enterprise areas such as divisions, or geographical areas.

5. Key process flows covered Post GL account documents Reverse GL account documents Display Document Journal Display GL account balances (list) Post recurring entries Post accruals Run foreign exchange/currency revaluation Account Maintenance: manual clearing Account Maintenance: automatic clearing Execute Tax Accounting Create account statements Use legal reporting Financial Accounting General Ledger (GL) Business benefits Recording of all business transactions ensures complete and accurate accounting data Simplifies and accelerates faster financial closes Ensures balanced books by any dimension and reconciliation through roll-up of special-ledger postings to GL Supports legal and parallel reporting requirements Provides real-time insight into financial figures and key performance indicators Purpose Supports the accounting requirements of an organization by providing a complete record of all business transactions and financial reporting for multiple accounting standards.

6. Financial Accounting Accounts Receivable (AR) Business benefits Easily handles large numbers of customer invoices and credit notes The payment program can automatically carry out direct debiting and down payments Improves cash flow and liquidity with an optimized receivables management Provides real-time insight in outstanding receivables Purpose Is an integral part of bookkeeping which helps manage transactions with customers and company business partners, and is an integral part of sales processes. Key process flows covered Post AR account documents Post customer invoices Post credit notes with invoice reference Execute down payments clearing manually Post incoming payments manually and using the payment program Clear open items in customer accounts manually and automatically Process account statements manually and reprocess account statement Execute dunning Create One-Time-Accounts postings Set credit limits Display open item and credit control reporting

7. Financial Accounting Accounts Payable (AP) Business benefits Easily handles large numbers of invoices and credit notes The payment program can automatically carry out bank transfers and down payments Improves cash flow and liquidity with automatic payments at optimal payment time Provides real-time insight in outstanding liabilities Purpose Accounts Payable sub-ledger is an integral part of bookkeeping which helps manage transactions with vendors and company business partners, and is an integral part of purchasing processes. Key process flows covered Post AP account documents Post down payment request Post vendor invoices Clear open items manually and automatically Post down payments using the payment program Post outgoing payments manually and using the payment program Post payments and create payment medium using the payment program

8. Financial Accounting Period-End Closing in Financial Accounting Purpose Includes those processes required to close the books and prepare financial reports; accruals and reversals, foreign currency revaluations; balance confirmations with customers and vendors. Key process flows covered Execute day-end closing Execute month-end closing Execute year-end closing Business benefits System supports in creating the balance sheets and profit and loss statements System supports in documentation of posting data Simplifies and accelerates financial closings through automation

9. Financial Accounting Cash Management (CM) Purpose Cash Management covers a number of functions, including determination of liquidity based on bank account balances (cash position) and open receivables and payables (liquidity forecast) and more. Key process flows covered Analyze CM status Execute cash concentration Business benefits Transfers all cash-relevant information from internal and external sources into CM quickly and reliably (inbound data) Performs analysis and reporting of current and future cash flows to support CM decisions (analysis and decision) Communicates with banks and other business partners based on the results of the decision process (outbound data)

10. Financial Accounting Asset Accounting (AA) Purpose Asset Accounting manages and supervises fixed assets. It serves as a subsidiary ledger to the General Ledger, providing detailed information on transactions involving fixed assets. Key process flows covered Post asset acquisitions from purchase with vendor Post asset acquisitions with automatic offsetting entry Retire assets due to scrapping or with revenue Post asset sales without customer Post post-capitalizations Post write-ups Settle assets under construction Post down payment requests for assets under construction Execute depreciation posting run Post acquisition and production costs values Simulate depreciations and plan primary costs Business benefits Simplifies and accelerates financial closings Automatically calculates depreciation and interests Simulates depreciation forecast Covers entire asset lifecycle and provides full integration with other ledgers and components in SAP ERP

11. Financial Accounting Asset Acquisition for Constructed Assets (Investment Orders) Purpose Assets under construction involve the accumulation of costs during the building or construction of fixed assets and the capitalization of costs at the completion of construction. Key process flows covered Create investment orders (with asset under construction master records) Create budgets for investment orders Release investment orders Post AP invoices to investment orders Monitor investment order progress Settle assets under construction Complete investment orders Business benefits Transparent view of an asset for acquisition Ensures automated and efficient processing

12. Financial Accounting Cost of Sales Accounting Purpose Cost of sales accounting compares the sales revenues for an accounting period with the costs involvedin the production of the sold products. Key process flows covered Add functional area in Chart of Accounts Add functional area in posting keys Add cost center categories Post GL account documents with functional area Post customer invoices Post vendor invoices Execute line item reporting (cost object re-assignment) Generate balance sheets and profit and loss statements Generate Cost of Sales Accounting – profit and loss statements Business benefits Operating expenses are often allocated in different ways in Financial Accounting and Cost of Sales Accounting Flexible way to control the functional area by a hierarchic model With this type of grouping, Cost of Sales Accounting clearly identifies where costs originate in a company

13. Financial Accounting Activate Document Splitting Purpose This function enables you to assign one or more segments (e.g. cost/profit centers) to financial postings for current or future managerial reporting needs, and is a prerequisite for Segment Reporting. Key process flows covered Activate Document Splitting based on segments Business benefits Real-time postings (online) Account statements for the selected dimensions can be generated at any time with segment reporting Provides extensibility and flexibility for company- specific and industry-specific enhancements Increases data quality as results of the document split are visible in the document itself Significantly accelerates the closing process when used along with parallel accounting and many automated functions as subsequent processes like foreign-currency valuation may be executed immediately

14. Financial Accounting Segment Reporting Purpose The purpose of segment reporting is to provide a breakdown of data in financial statements by individual enterprise areas such as divisions, or geographical areas. Key process flows covered Post GL account documents with different segments Allocate segments that could not be allocated formerly at period end Generate balance sheets and profit and loss statements Generate Cost of Sales Accounting profit and loss statements Generate AR and AP by segments Business benefits Account statements for the selected dimensions can be generated at any time with segment reporting

15. Controlling Scope items

16. Controlling General Cost Center Planning The managers of non-operational cost centers, such as sales, marketing, administrative, research and development, plan the costs for various cost types or elements for their respective cost centers. Internal Order for Research and Development Planning Involves entering costs, activities and business processes that is incurred during the life cycle of an order. Can compare plan and actual costs and perform a differentiated variance analysis. Internal Order for Marketing Expenses and Other Overhead Planning Internal orders are used to plan, collect, and settle costs for projects like marketing campaigns or other internal projects. Overhead Cost Accounting Actual The purpose of overhead cost controlling is the planning, allocation, control, and monitoring of overhead costs. Internal Order for Research and Development Actual Internal orders are used to monitor costs and provide cost control for an organization, and are the most detailed operational level of cost controlling. Internal Order for Marketing Expenses and Other Overhead Actual Internal orders are used to plan, collect, and settle costs for projects like marketing campaigns or other internal projects.

17. Controlling General Cost Center Planning Purpose The managers of non-operational cost centers, such as sales, marketing, administrative, research and development, plan the costs for various cost types or elements for their respective cost centers. Key process flows covered Check cost center master data Check version validity for current budget period Copy previous year actuals or budgets Execute transfer of planned depreciations from assets Set planner profile Download cost elements to MS Excel for income and expenses budgets Update budget values for income and expenses excluding operations Upload cost elements for income and expenses excluding operations Plan accrual costs and statistical key figures, and execute plan assessments Confirm non-operating cost center budgets Copy AOP version to actual version 0 and lock both versions for planning Business benefits Allows comparison of planned and actual costs and monitoring of costs on cost centers

18. Controlling Internal Order for Research and Development Planning Purpose Involves entering costs, activities and business processes that is incurred during the life cycle of an order. Can compare plan and actual costs and perform a differentiated variance analysis. Key process flows covered Create Research and Development internal orders Set planner profile Plan costs for Research and Development internal orders Settle planned costs for Research and Development internal orders Confirm correct settlement Execute internal order reporting Business benefits Allows comparison of planned and actual costs on internal orders and monitoring of costs and order status

19. Controlling Internal Order for Marketing and Other Overhead Planning Purpose Internal orders are used to plan, collect, and settle costs for projects like marketing campaigns or other internal projects. Key process flows covered Create internal orders Plan cost elements for internal orders Settle internal orders with planned costs Business benefits Enables tracking of planned and actual costs of these projects for various purposes such as cost control, return on investment calculations, tax reporting and so on

20. Controlling Overhead Cost Accounting Actual Purpose Internal orders are used to plan, collect, and settle costs for projects like marketing campaigns or other internal projects. Key process flows covered Process GL account documents for various purposes Plan costs for various cost elements for cost centers Assess shared expenses Record statistical key figures Analyze planned and actual figures Settle internal orders Execute necessary steps for preparation of periodic and year-end activities Business benefits Provides a transparent view for an account of a cost center Helps to plan, control, and monitor cost behavior Increases cost-consciousness Provides various analyses of variances, such as volume, price, input, and quantity variance Supports decision-making to improve profitability

21. Controlling Internal Order for Research and Development Actual Purpose Internal orders are used to monitor costs and provide cost control for an organization, and are the most detailed operational level of cost controlling. Key process flows covered Create Research and Development internal orders Execute consumable purchasing Post goods issues to Research and Development internal orders Settle Research and Development internal orders Business benefits Provides a transparent view of outstanding orders, shipments, and inventory Enables automated and efficient processing

22. Controlling Internal Order for Marketing and Other Overhead Actual Purpose Internal orders are used to plan, collect, and settle costs for projects like marketing campaigns or other internal projects. Key process flows covered Create internal orders Settle internal orders based on actual costs Business benefits Enables tracking of planned and actual costs of these projects for various purposes such as cost control, return on investment calculations, tax reporting, and so on

23. Analytics Scope items

24. Analytics SAP ERP Reports for Accounting Purpose These top SAP ERP reports meet the legal and management reporting needs. Key process flows covered Execute GL Accounting reporting Execute fixed Asset Accounting reporting Execute Cost Element Accounting reporting Execute Cost Center Accounting reporting Execute internal order reporting Execute product costing reporting Execute Profitability Analysis reporting Execute Information System: (actual) costs, revenues, expenditures, receipts Business benefits Provides direct access to information helping to get broader visibility across all areas of the business Lets you uncover business opportunities and anticipate risks Provides you with an understanding of how different business drivers impact financial and operational performance