SAP ERP Financials provides a complete financial management for accounting, reporting, analysis, financial supply chain, treasury management, performance management, and corporate governance
Not the same with other solutions, SAP ERP Financials provides a complete financial management for accounting, reporting, analysis, financial supply chain, treasury management, performance management, and corporate governance. With SAP Financials, company can transform finance from an administrative department into a strategic business partner.
Financial Accounting – FI:
This module collects all the data relevant to financial accounting, from transactions to accounts, into an integrated General Ledger. It provides comprehensive, consolidated financial reports and ties together the different pieces of financial data, accounts payable, accounts receivable and asset management…. It also provides an up-to-the-minute basis for enterprise-wide control and planning, giving a “snapshot” of the enterprise.
The FI module supports international accounting standards such as GAAP and IAS.
All accounting-relevant transactions made in Logistics (LO) or Human Resources (HR) components are posted real-time to Financial Accounting by means of automatic account determination. This data can also be passed on to Controlling (CO). This ensures that logistical goods movements (such as goods receipts and goods issues) are exactly reflected in the value-based updates in accounting.
Financial accounting supports the valuation and reporting of inventory according to different regulations as using Material Ledger component to get inventory values in two additional currencies/valuations and performs all goods movements in the Material Ledger in up to three currencies or valuations. Transferring currency amounts into foreign currencies at historical exchange rates at the time of posting. Supports the determination of actual costs (compared to standard costs) for externally procured materials and materials produced in-house via Actual Costing as uses to valuate material inventories, raw materials, semi-finished and finished products.
Controlling – CO:
The controlling provides you with information for management decision-making. It facilitates coordination, monitoring and optimization of all processes in an organization. This involves recording both the consumption of production factors and the services provided by an organization. It provides you with a clear view of costs, focusing on the external and internal services within your organization. As a result, you can represent individual types of services in details.
Cost and performance controlling capabilities provide you with a variety of methods for clarifying the results and the output of administrative duties based on the types of services, products, processes, projects, and general cost objects. In the cost object controlling area, product and service costs and revenues are represented and evaluated for each individual product and service, as well as for their specific defined groups.
Cost and performance controlling capabilities also generate and control the product and service budget separately, as well as plan and calculate product and service costs exactly. In other words, the system facilitates output orientation and resource control in the new controlling model. The results are represented and analyzed in the profitability analysis – for example, contribution margins.
The controlling includes a variety of planning and control tools for enterprise control systems, following a uniform system of reporting. It provides comprehensive reports to support most common cost-accounting problems, as well as the capability to put together additional reports. As well as documenting actual events, the main task of controlling is planning. You can determine variances by comparing actual data with plan data. These variance calculations enable you to control business flows.
AP (Account Payable):
This function is integrated completely with MM module. All of transactions are reconciled with invoices to make sure that all of payment is valid.
The Accounts Payable application component records and manages accounting data for all vendors. It is also an integral part of the purchasing system: Deliveries and invoices are managed according to vendors.
AR (Account Receivable):
This function is integrated completely with SD module. All of inventory transactions are transferred automatically to AR. The Accounts Receivable application component records and manages accounting data of all customers. It is also an integral part of sales management.
AA (Asset Accounting):
Asset Management component is used for managing and supervising fixed assets with the SAP System. In SAP Financial Accounting, it serves as a subsidiary ledger to the FI General Ledger, providing detailed information on transactions involving fixed assets.
GL (General Ledger):
The central task of G/L accounting is to provide a comprehensive picture for external accounting and accounts. Recording all business transactions (primary postings as well as settlements from internal accounting) in a software system that is fully integrated with all the other operational areas of a company ensures that the accounting data is always complete and accurate.
Cost Centre Accounting
Cost Center Accounting lets company analyze the overhead costs according to where they were incurred within the organization. This module uses to be to control and distribute cost to each department.
Activity Base Accounting
In production process, there have some processes must be run-across to many departments and can’t assign processing cost to one department. In order to solve this problem, the Activity-Based-Accounting (CO-OM-ABC CORP) function analyzes to view via processing cost base on Cost Center Accounting. This not only optimize for using production cost of department but also all of process chain.
Activity-Based Costing provides a process-oriented, cross-functional view of overhead, in contrast to the traditional location-oriented view provided by Cost Center Accounting. Activity-Based Costing thus complements and enhances Cost Center Accounting.
Activity-Based Costing allocates process quantities based on resource and process drivers, allowing you to define cost allocation along the value-added chain more exactly than is possible with overhead rates. Activity-Based Costing also complements and enhances product costing by assigning costs to the business processes where they originated. Cost center resources can allocate to business processes based on their true utilization of activities.
Product Cost Controlling:
This function help to calculate the cost of goods manufactured and cost of goods sold for products such as materials and services. The costs may then be analyzed and business decisions (such as “make or buy” decisions) made
Profitability Analysis (CO-PA) enables company to evaluate market segments, which can be classified according to products, customers, orders or any combination of these, or strategic business units, such as sales organizations or business areas, with respect to your company’s profit or contribution margin.
Profit Center Accounting lets organization determine profits and losses by profit center using either period accounting or the cost-of-sales approach.