Finance & Controlling Archives

TRM in SAP S4HANA: Overview Presentation

September 24, 2023

The document provides an overview of SAP Treasury and Risk Management (TRM), which is a module within the SAP S/4HANA enterprise resource planning system. The purpose of SAP TRM is to help organizations effectively manage their treasury operations and mitigate financial risks.

The main topics covered in the document include:

Introduction to SAP TRM
Purpose and benefits of SAP TRM
Role and key functions of Treasury and Risk Management
Cash management
Payment management
Multi-bank connectivity
Working capital management
Market rates management
Integration of SAP TRM with other systems

SAP MM-SD and SD-FI Integration Points

September 23, 2023

The integration of SAP modules is essential for efficient business operations. This article explores the key touch points between Materials Management (MM), Sales and Distribution (SD), and Financial Accounting (FI).

Integration Point	Description	Key Considerations for SAP Consultants
MM-SD
Sales Order	SD triggers the creation of a sales order, prompting MM to check material availability in stock or initiate procurement.	Ensure consistent pricing and data across MM and SD.
Delivery	Once a delivery is created in SD, MM ensures the correct goods are picked, packed, and shipped to customers.	Automate delivery processes to minimize manual interventions and errors.
Stock Updates	After goods issue in SD, MM updates inventory levels and triggers relevant accounting entries.	Implement regular stock reconciliation to ensure accurate inventory records.
Returns	When returns occur, MM and SD work together to manage reverse logistics and stock updates.	Establish clear and efficient return procedures to ensure timely and accurate processing.
SD-FI
Revenue Recognition	SD provides data on sales transactions, enabling FI to recognize revenue and record relevant accounts receivable.	Configure revenue recognition rules in FI to align with your accounting policies.
Customer Invoicing	SD generates customer invoices, with FI managing accounts receivable and subsequent cash entries.	Automate the invoicing process to ensure timely and accurate invoices are sent to customers.
Sales Tax	SD calculates taxes like VAT, and FI ensures proper accounting and compliance with tax regulations.	Configure tax codes and rates in FI to ensure accurate tax calculations and compliance.
Credit Management	SD’s credit limits influence FI’s credit exposure and bad debt provisions.	Implement robust credit management policies and procedures to minimize risk and bad debts.

Implications for SAP Consultants

SAP consultants can help businesses achieve seamless and efficient business processes by:

Maintaining consistent and accurate master data across MM, SD, and FI.
Thoroughly testing end-to-end processes to identify and resolve any integration issues.
Encouraging cross-functional training to foster better understanding and collaboration between MM, SD, and FI teams.
Continuously optimizing MM-SD and SD-FI processes to enhance efficiency, reduce manual interventions, and boost productivity.
Staying abreast of SAP updates and advancements.

GST Configuration in SAP S4HANA: Complete Guide

September 16, 2023

GST is a comprehensive indirect tax system implemented in India. All businesses need to obtain a GST Identification Number (GSTIN) and configure GST in their ERP system.
This PDF document provides a comprehensive guide for configuring GST in SAP S/4HANA step-by-step following the IMG menu path. Key configurations covered include business place, condition types, account keys, G/L accounts, account determination, tax procedure definition and assignment.
List of steps covered in the document are:

Activate business place and define business places for company codes.
Define access sequence for GST condition types.
Create condition types for input and output GST – CGST, SGST, IGST.
Define transaction tax account keys for input and output GST accounting.
Create G/L accounts to post GST amounts.
Do account determination to map G/L accounts to tax account keys.
Define tax calculation procedure with condition types, access keys, calculation steps.
Assign GST tax procedure to India in SAP.

SAP CO: End User Manual Sample for Cement Industry

September 14, 2023August 27, 2023

This document [132 Pages PDF] provides an overview of key SAP Controlling processes and transactions for end users in the cement industry. It covers essential day-to-day Controlling activities required for cost tracking, reporting, and management decision making. The manual is intended to serve as a hands-on reference guide for Controlling trainers to educate cement company users on utilizing SAP functionality.

Following list of processes are covered with step-by-step instructions and screenshots in this document:

Maintenance of Master Data
- Cost Center
- Cost Center Group
- Profit Center
- Profit Center Group
- Cost Element
- Cost Element Group
- Activity Type & Activity Type Groups
- Posting Keys
- Document Type
Costing Process
- Planning Process
  - Cost Center Planning
  - Internal Order Planning
  - Manufacturing Cost Center Planning
  - Product Cost Planning
  - Activity Type Planning
  - Cost Element Planning
  - Standard Cost Estimation for Products
- Actual Processing
  - Internal Order Actual Calculation
  - Overhead Cost Calculation
  - Actual Cost Calculation
- Period End Closing Transactions
Reports
- Cost Centers Report
- Internal Orders Report

SAP S/4 HANA Finance New Asset Accounting Depreciation Guide

September 14, 2023August 13, 2023

This document provides an overview of the changes and enhancements in the New Asset Accounting module in SAP S/4 HANA Finance, specifically focusing on depreciation.

The New Asset Accounting module in SAP S/4 HANA Finance replaces the classic Asset Accounting found in ECC 6.0. One of the key changes in the New Asset Accounting module is the introduction of a new depreciation program, FAA_Depreciation_Post, which posts pre-calculated planned values. This is a shift from the ECC 6.0 approach where depreciation was calculated in real-time.

The new functionality is consistent across both S/4 HANA OP Edition 1709 and S/4 HANA Finance OP Edition 1503. Other changes in the New Asset Accounting module include:

Planned depreciation is now updated with each master record change and every posting to the asset.
The depreciation run now posts these pre-calculated values.
Journal entries are updated at the asset level in financial accounting.
Period-end closing can be executed even if there are errors on individual assets.
The depreciation run screen (transaction code AFAB) has undergone changes, including options to run depreciation for multiple company codes and a new tab to display details of the last depreciation run.
The document also discusses the depreciation posting rules in New Asset Accounting, including the removal of the “Smoothing” option.

The document provides a structured approach to understanding the enhancements in the New Asset Accounting module in SAP S/4 HANA Finance, with a focus on depreciation.

Automatic Account Determination Process in SAP MM-FI (ECC / S4HANA)

June 17, 2023

This document is a detailed guide on the Automatic Account Determination Process in SAP MM-FI (ECC / S4HANA). Here’s a summary of the key points from the document:

Integration with SAP MM and FI Module: The FI Module is linked with the MM Module because operations like Goods Receipt and Invoice Receipt directly impact the financial operation of the organization. Inventory postings update the G/L Accounts online in the background.
Roles of Automatic Account Determination: In SAP MM, the procurement process involves costs that need to be paid to the vendor. Some configuration for account determination is done so that the system will automatically determine the correct G/L account that needs to be posted.
Customizing: This involves several steps including:
- Assigning the Company Code to Chart of Accounts
- Setting the Valuation level (T-code OX14)
- Grouping Together Valuation Areas
- Defining Material type (T-code OMS2) and Valuation class
- Defining Account Grouping for Movements Types
- Configuring Automatic Postings
Managing Message number no M8147 Account determination: This issue means that the system cannot update a G/L account for a transaction. You cannot post the transaction. This issue can occur in MIGO (goods receipt) and MI07 (when you post inventory difference in physical inventory). The solution is to use the OBYC t-code and go to the GR/IR clearing account (WRX).
Table (T030) to get the details of OBYC: If you want to know transaction keys based on G/L Account or the G/L Accounts based on Transaction keys / valuation grouping code /Account modifier / chart of accounts, you can use two t-codes: SE11 (to display the structure of the tables (T030)) and SE16N (to see the content of table (T030)).

The document also provides several examples and simulations to illustrate the concepts and steps involved in the Automatic Account Determination Process.

SAP FICO Complete End User Guide: 226 Transactional Process (1142 Pages PDF)

April 20, 2023

This SAP FICO End User Guide (1142 Pages PDF) provides a comprehensive list of 226 no of transactional processes. Each process is accompanied by a Business Process Overview, Tips & Tricks, and Procedural Steps, including screenshots.

SAP Funds Management for Public Sector: End-to-End Implementation Scenario

April 3, 2023

Funds Management component is a part of the SAP Public Sector Management (SAP-PSM) module, which is primarily used by public institutions, agencies, and non-profit organizations to manage their finances. This module integrates various functions such as budget formulation, preparation, execution, and reporting, while adhering to management standards. Funds management involves tracking the flow of funds from source to application and is a crucial task for public sector organizations.
In this implementation guide, a business scenario with an end to end cycle in Funds Management is discussed under following configuration tasks:

Organization Structure
Master Data
Accounting Assignment
Controlling Assignment
Budget Structure
Derivation Rules
Availability Control
Status Management

SAP FI Asset Accounting Presentation for End Users

March 25, 2023

The objective of this training session is to provide end users the required SAP knowledge to be able to perform their
roles within the Fixed Asset Accounting business. This course will enable you to:

Understand the Asset Accounting process in SAP
Identify end user’s role within the process
Understand key concepts, terminology and sub-processes related to the Asset Accounting process
Know about relevant SAP transactions for end users

Product Cost Controlling in SAP S/4 HANA: End User Guide

October 22, 2022

This end user guide provides step-by-step instructions for running daily SAP Product Cost Controlling tasks/processes . Following list of transactions (tcodes) are covered in this guide;

Product Cost Controlling Tasks
- CK51N– Create sales order cost estimates
- CK53N– Display sales order cost estimates
- CK55– Mass sales order cost estimates
- CO03– Display Production Order to see the cost and other detail
- CO03-Display BOM and quantities from the production order
- CO03-Display activities and quantities from the process order
- CO03-Display material and other documents from the process order
Period End Closing Activities
- KBK6-Actual activity price determination
- KSII-Price Calculation
- MFN1 – Individual Processing
- CON2 – Collective Processing
- KGI2 – Overhead – Individual Processing
- CO43 Overhead – Collective Processing
- KKAX-WIP Calculation – Individual Processing
- KKAY-WIP Calculation – Display IndividualProcessing
- KKAO-WIP Calculation – Collective Processing
- KKS2-Variance calculation – Variance calculation
- KKS1-Variance calculation – Collective Processing
- KO88-Settlement- Actual Settlement Production Order – Individual
- CO88-Settlement – Collective Processing
- COHV-Mass Processing – Closing production order
- KKA3-Results Analysis – Individual processing
- KKAK-Results Analysis – Collective processing
- VA88-Sales Order Settlement
- CKMM – Change Material Price Determination
Product Costing Reports
- S_ALR_87013099-Order Comparison
- S_ALR_87013127-List of Orders
- KKAC – For Sales Order with Assigned Orders
- CK87_99 – Costed Multilevel BOM
- CKAPP03 – Display Sales Order Items to be Costed
- S_ALR_87013104 – Sales Order Selection-SO wise profitability