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Lecture1v21.pptxLecture1 Finance Review and Introduction to ERP
FIN319
Learning Objectives
Review Finance basic concepts
Introduction to SAP
Review an Introduction to SAP
Understand the definition of ERP and business processes
Understand the inter-related nature of an ERP system and the impact on finance
Explain the silo effect
Review SAP Business Suite and basic concepts (master data and transactional data)
Understand Accounting in SAP
Explain the goal of FI and CO
Understand the basics of SAP navigation
Finance Review
Finance Review Forms of Business Organizations
The corporate form of business is the standard method for solving the problems encountered in raising large amounts of cash.
Review
Sole Proprietorship
A Business own by one person
Partnership
A business own by two or more individuals or entities
General, with unlimited debt liability
Limited, with some partners with limited debt liability
Partnership
A legal person distinct from owners with limited liability
General, subject to double taxation
S Corporation is taxed through its shareholders. Avoid double taxation
Limited liability allows to operation like partnership
Finance Review A Comparison
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Corporation
Partnership
Liquidity
Shares can be easily exchanged
Subject to substantial restrictions
Voting Rights
Usually each share gets one vote
General Partner is in charge; limited partners may have some voting rights
Taxation
Double
Partners pay taxes on distributions
Reinvestment and dividend payout
Broad latitude
All net cash flow is distributed to partners
Liability
Limited liability
General partners may have unlimited liability; limited partners enjoy limited liability
Continuity
Perpetual life
Limited life
Review
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Corporations account for the largest volume of business (in dollar terms) in the U.S. Advantages include limited liability, unlimited life, separation of ownership and management (ability to own shares in several companies without having to work for all of them), liquidity, and ease of raising capital. Disadvantages include separation of ownership and management (agency costs) and double taxation. Recent tax laws reduce the level of double taxation, but it has not been eliminated.
Although the corporate form of organization has the advantage of limited liability, it has the disadvantage of double taxation. A small business of 75 or fewer stockholders is allowed by the IRS to form an S Corporation. The S Corp. organizational form provides limited liability but allows pretax corporate profits to be distributed on a pro rata basis to individual shareholders, who are only obligated to pay personal income taxes on the income. A similar form of organization is the limited liability corporation, or LLC. LLC’s are a hybrid form of organization that falls between partnerships and corporations. Investors in LLC’s have the protection of limited liability, but they are taxed like partnerships. LLC’s first appeared in Wyoming in 1977 and have skyrocketed since. They are especially beneficial for small- and medium-sized businesses such as law firms or medical practices.
A Corporation by Another Name…Corporations exist around the world under a variety of names. Table 1.2 lists several well-known companies, along with the type of company in the original language.
Finance Review The Goal of Financial Management
The goal is to increase the value of the firm by maximizing investments while minimizing financing.
V = Σ CFt / (1+ i)t
Maximize the current value per share of the exiting stock
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Review
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Learning Objective: Apply goals of financial management in making decisions
Possible Goals
Profit Maximization – this is an imprecise goal. Do we want to maximize long-run or short-run profits? Do we want to maximize accounting profits or some measure of cash flow? Because of the different possible interpretations, this should not be the main goal of the firm.
Other possible goals that students might suggest include minimizing costs or maximizing market share. Both have potential problems. We can minimize costs by not purchasing new equipment today, but that may damage the long-run viability of the firm. Many dot.com companies got into trouble in the late 1990’s because their goal was to maximize market share. They raised substantial amounts of capital in IPO’s and then used the money on advertising to increase the number of “hits” on their site. However, many firms failed to translate those “hits” into enough revenue to meet expenses, and they quickly ran out of capital. The stockholders of these firms were not happy. Stock prices fell dramatically, and it became difficult for these firms to raise funds. In fact, many of these companies have gone out of business. The Goal of Financial Management From a stockholder (owner) perspective, the goal of buying the stock is to gain financially. Thus, the goal of financial management in a corporation is to maximize the current value per share of the existing stock. Is it ethical to sell a product that is known to be addictive and dangerous to the health of the user even when used as intended? Is the fact that the product is legal relevant? Do recent court decisions against the companies matter? What about the way companies choose to market their product? Are these issues relevant to financial managers?
How do we go about maximizing shareholder wealth?
Finance Review Agency Cost and Agency Problem
Agency relationship is the relationship that exist between stockholders and management
Principal hires an agent to represent its interests
Stockholders (principals) hire managers (agents) to run the company
Agency cost is the conflict of interest (due to risk tolerance) between stockholders and management
Stockholders goal is to increase the return on its investments (firm’s higher value)
Management may be more concern about its compensation or job security
Agency problem
Conflict of interest between principal and agent
Review
Manager
Stakeholder
Mgt
Owner
Finance Review Do Managers Act in the Stockholders’ Interest?
Alignment between management and stockholders goals?
Managerial compensation
Incentives can be used to align management and stockholder interests
Incentives need to be carefully structured to insure that they achieve their goal
Can management be removed if goals are different?
Corporate control
Proxy fights is the mechanism on which unhappy stockholders can remove management
Poorly manage firms are more attractive to takeovers
Review
Finance Review Regulation
The Securities Act of 1933 and the Securities Exchange Act of 1934
Issuance of Securities (1933)
Creation of SEC and reporting requirements (1934)
Sarbanes-Oxley (“SOx”)
Increased reporting requirements and responsibility of corporate directors
Financial Statements and Cash Flow
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Review
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Historically, most regulation has focused on the disclosure of relevant information, thereby putting all investors on an equal playing field.
The Securities Act of 1933 and the Securities Exchange Act of 1934
These Acts provide the basic regulatory framework for the public trading of securities in the United States. The 1933 Act focuses on the issuance of securities, while the 1934 Act established the SEC and addressed other regulatory issues, such as insider trading and corporate reporting.
Sarbanes-Oxley
Following the scandals at Enron, WorldCom, and Tyco, among others, “Sarbox” was enacted in 2002. This Act significantly increased the auditing and reporting requirements that public firms face, and it also explicitly placed the responsibility for any fraud on the corporate directors.
As with any law, however, there is a cost. In response to the added burden, many (particularly small) firms have delisted and others have foregone going public. For others, the cost of compliance has significantly increased, thereby reducing profits.
Introduction to SAP
SAP as an ERP
SAP Introduction
SAP stands for Systems, Applications, and Products in Data processing
Very successful Enterprise Resource Planning (ERP) solution which is used to highly integrate business processes.
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SAP
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SAP Introduction Name of Company and Software
Name of the Company
SAP AG (Walldorf)
SAP America (New Town Square)
Name of the Software
SAP R/2
SAP R/3
SAP ERP
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SAP
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SAP Introduction Company Statistics
SAP AG
Founded in Walldorf, Germany in 1972
World’s Largest Business Software Company
Enterprise application, Analytics and Business Intelligence software
Revenue 2017: 27.3B EUR
Company Statistics
Over 90,000 employees in more then 50 countries
1500 Business Partners
36,200 customers in more then 120 countries
12 million users
100,600 installations
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SAP
SAP is the world's largest inter-enterprise software company and the world's third-largest independent software provider overall. We have a rich history of innovation and growth that has made us a true industry leader.
SAP Americas
12 Million Users. 100,600 Installations. 1,500 Partners.
SAP Americas is a subsidiary of SAP AG, the world's largest inter-enterprise software company and the third-largest software supplier overall. SAP Americas's corporate headquarters is located in Newtown Square, PA, a suburb of Philadelphia. Our officers and executives lead a team of professionals dedicated to delivering high-level customer support and services.
Founded in 1972 as Systems Applications and Products in Data Processing, SAP has a rich history of innovation and growth that has made us the recognized leader in providing collaborative business solutions for all types of industries -- in every major market. The company, headquartered in Walldorf, Germany, employs more than 37,700 people in more than 50 countries, and serves more than 34,600 customers worldwide.
Experience, Knowledge, and Technology for Maximizing Business
SAP has leveraged our extensive experience to deliver mySAP Business Suite, the definitive family of business solutions for today's economy. These solutions are open and flexible, supporting databases, applications, operating systems, and hardware from almost every major vendor. What's more, mySAP Business Suite allows employees, customers, and business partners to work together successfully -- anywhere, anytime.
By deploying the best technology, services, and development resources, SAP has delivered a business platform that unlocks valuable information resources, improves supply chain efficiencies, and builds strong customer relationships. And through the Global Solution Center, SAP Americas identifies customer needs and develops solutions to meet these needs.
SAP is listed on several exchanges, including the Frankfurt Stock Exchange and the New York Stock Exchange, under the symbol "SAP."
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SAP Introduction From SAP R/3 to HANA
Database layer
From Oracle/ Ms SQL
To SAP HANA
Presentation layer
From SAP GUI
To SAP Fiori
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SAP
Central database stores all data and application programs.
The application gives access to the database to read and write data.
The presentation allows for input/output of data to the users
3-tier client server system
Web server
Internet transaction server
Brings it to a single database across the world.
What is Client-server Computing?
The short answer: Client/server is a computational architecture that involves client processes requesting service from server processes. The long answer: Client/server computing is the logical extension of modular programming. Modular programming has as its fundamental assumption that separation of a large piece of software into its constituent parts ("modules") creates the possibility for easier development and better maintainability. Client/server computing takes this a step farther by recognizing that those modules need not all be executed within the same memory space. With this architecture, the calling module becomes the "client" (that which requests a service), and the called module becomes the "server" (that which provides the service). The logical extension of this is to have clients and servers running on the appropriate hardware and software platforms for their functions. For example, database management system servers running on platforms specially designed and configured to perform queries, or file servers running on platforms with special elements for managing files. It is this latter perspective that has created the widely-believed myth that client/server has something to do with PCs or Unix machines.
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SAP Introduction Software Applications
Industry Solutions (Business Suite & Business All in One)
SAP ERP
SAP CRM
SAP SCM
SAP SRM
SAP PLM
Digital (Business Suite & Business All in One)
SAP S/4 on HANA
Success Factors & Fieldglass
Ariba, Concur
Hybris
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SAP
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SAP Introduction SAP 3-Tier Architecture
3-tier client-server architecture
Database layer
One single data repository
Application layer
One or more, help distribute work load
Client layer (Presentation layer )
Graphical User Interface or Web Interface (GUI)
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SAP
Central database stores all data and application programs.
The application gives access to the database to read and write data.
The presentation allows for input/output of data to the users
3-tier client server system
Web server
Internet transaction server
Brings it to a single database across the world.
What is Client-server Computing?
The short answer: Client/server is a computational architecture that involves client processes requesting service from server processes. The long answer: Client/server computing is the logical extension of modular programming. Modular programming has as its fundamental assumption that separation of a large piece of software into its constituent parts ("modules") creates the possibility for easier development and better maintainability. Client/server computing takes this a step farther by recognizing that those modules need not all be executed within the same memory space. With this architecture, the calling module becomes the "client" (that which requests a service), and the called module becomes the "server" (that which provides the service). The logical extension of this is to have clients and servers running on the appropriate hardware and software platforms for their functions. For example, database management system servers running on platforms specially designed and configured to perform queries, or file servers running on platforms with special elements for managing files. It is this latter perspective that has created the widely-believed myth that client/server has something to do with PCs or Unix machines.
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Enterprise Resource Planning ERP
Enterprise Resource Planning
System that integrate the management of core business processes end to end within an Enterprise
Benefits
Integration: Improve profitability, productivity and reduce TCO
Standardization: Governance/ Single source of truth / Improve productivity
Governance: Audit trail and risk reduction
Reporting: Immediate availability of data, Financial management.
SAP
Process
Integration
Standardization
Governance
Reporting
Regardless of their type or size, successful organizations and industries use processes and enterprise systems to complete the work needed to achieve their goals.
A business process, illustrated in Figure 1-2, is a set of tasks or activities that produce desired outcomes.
Because different functional areas or departments carry out the various process steps, effective communication and collaboration among the departments is essential to the smooth execution of these processes.
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ERP
Purchasing
Manufacturing
Finance
Sales and Distribution
Dashboards
Human Resources
Enterprise Resource Planning Business Processes
Business Processes
Organized group of sequence of tasks or activities that together produce desired outcomes
Characteristics
Inputs (events) / Outputs (results)
Involving end to end flow of business activities
Task by roles in the organization
Processes interrelated with each other
SAP
Key business processes
Regardless of their type or size, successful organizations and industries use processes and enterprise systems to complete the work needed to achieve their goals.
A business process, illustrated in Figure 1-2, is a set of tasks or activities that produce desired outcomes.
Because different functional areas or departments carry out the various process steps, effective communication and collaboration among the departments is essential to the smooth execution of these processes.
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OTC
Order to Cash
PTP
Procurement to Pay
PRD
Production
RTR
Record to report
HTR
Hire to retire
Step 1
Step2
Step3
Enterprise Resource Planning Business process: Order to Cash
Order to Cash
SAP
Covers the process from the contact with the customer and ends with the collection of cash for goods or services
Includes
Sales and Distribution
Planning
Inventory
Finance
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Sales Order
Capacity Materials
Load schedule
Sourcing
Manufacturing
Shipping
Billing
Incoming Payment
Enterprise Resource Planning Business process: Procurement to Pay
Procurement to Pay
SAP
Covers the process sourcing to the vendor until the payment of goods or services
Includes
Purchasing
Quality
Inventory
Finance
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Sourcing
Purchase Order
Receiving
Invoice receipt
Outgoing payment
Enterprise Resource Planning Business process: Production
Production
SAP
Covers the process manufacturing process or the generation of services
Includes
Planning
Inventory
Manufacturing
Quality
Finance
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Review schedule
MRP
Issue raw material
Approve production
Manufacturing (create product)
Receive finish goods
Enterprise Resource Planning Business process: Record to Report
Record to Report
SAP
Covers the process from the recording of a transaction to the analysis
Includes
All areas
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Transaction
Financial consolidation
GL close
Accounting provisions
Analysis
Tax and statutory reporting
Enterprise Resource Planning Business process: Hire to Retire
Hire to Retire
SAP
Covers the process from the requisition of personnel until its retirement.
Includes
Human Resources
Finance
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People Requisition
Training
Compensation and benefits
Hire
Retire
Payroll
Enterprise Resource Planning Integrated Processes
SAP
OTC
PTP
PRD
RTR
HTR
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Schedule
Approval
MRP
Issue material
Mfg
Receive product
Transaction
FI provisions
FI Consolidation
Tax & Statutory
Analysis
GL Close
People requisition
Hire
Training
Payroll
Compensation
Retire
Sales order
Capacity
Schedule
Sourcing
Mfg
Shipping
Billing
Payment
Sourcing
PO
Receiving
Invoice receipt
Payment
Enterprise Resource Planning Business Processes Impact on Finance
ERP covers end to end processes
All process are cross functional requiring inter-dependent tasks between the organization’s groups.
Share responsibilities among functional areas
Each process has a trigger and an outcome
The final outcome of all processes is always financial
SAP
Finance
Procurement
Production
Inventory
Fulfillment
Enterprise Resource Planning Silo Effect and its Implications
Silo Effect
The tendency to focusing on functional objectives without regard to process objectives
Focus optimizing functional goals vs. process goals
Implications
Impossible to manage processes that are geographically dispersed without utilizing modern information systems
Lack of communication/coordination among functions
Reduction of productivity
Reduction of profitability
Lack of standardization
Lack of real time reporting
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SAP
Most companies are organized according to functional departments, which group together related activities and assets under specialized management controls. Although this approach enables companies to focus resources on specific activities, it also creates communication difficulties and delays between the highly specialized groups. Business processes cut across the vertical barriers (silos) that characterize the functional structure. For this reason they require cross-functional communication and collaborative execution. Enterprise systems allow companies to effectively manage business processes across functional areas and institutional boundaries. They perform this task by removing barriers to sharing and accessing information, thereby providing a holistic platform to execute integrated business processes consistently and efficiently. One of the key benefits to managing business processes with an integrated enterprise system is that process data are collected throughout the execution of each step of the process. Managers can then use these data to monitor and improve the organization’s processes. Enterprise systems enable companies to achieve operational efficiency through transparency across functional areas, and they provide consistent information for managerial decision-making. All business processes have an impact on the organization’s financial status, and the real-time impact of process execution can be monitored and analyzed through the use of an integrated enterprise system.
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SAP Business Suite SAP ERP Solution Map
SAP
SAP Business Suite Solutions and SAP ERP (Core)
HR
PP
SD
FSCM
CO
MM
QM
PM
FI
PS
BW
APO
PLM
GTS
CRM
SCM
SNC
ME
SRM
XI
Business Warehouse
Advance Planning
Product Lifecycle
Global Trade
Customer Rel Mng
Supply Collab
Mfg Execution
Supply Chain
Supplier Rel, Mng
Exchange Infrastructure
HR
PP
SD
FSCM
CO
MM
QM
PM
FI
PS
Finance and Controlling
Human Resources and Payroll
Purchasing &
Inventory
Quality
S&D
Plant Mnt
Production Planning
SAP
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SAP Basic Concepts Client and Data Types
Is the highest organizational level in the system.
Each client represents a group of companies or a firm regardless of its size.
Organizational (Configuration)
Used to represent structure in an enterprise
Master data
Reusable data relevant to multiple business processes
Transactional (Application)
Data that reflects outcomes of business processes
Application Server
Client 020
Client 010
Configuration
Master data
Configuration
Master data
Application data (transactions)
Application data (transactions)
SAP
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SAP Basic Concepts Master Data
Master Data
Set of reusable data that will influence the flow of transactional data within the system. It is the most important element of a system design and operational integrity.
Information is organized into views which are assigned to organizational elements.
Data at the client level can be used by all company codes.
Master Data is created centrally and can be used by all applications and all authorized users
Chart of Accounts
Customers
Vendors
Materials
Bill of Materials
Cost Centers
Profit Centers
HR Master record
SAP
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SAP Basic Concepts Tables Relationship (Master Data)
Source: Google.com | Search for “sap tables pdf”
SAP
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SAP Basic Concepts Transactional Data
Transaction Data
Data that represents an event within the system and reflects the consequences of executing process steps
Whenever possible, master data is copied during transaction processing, thus avoiding the re-entry of data.
When a business process transaction is executed in the system and saved, a document is created.
Journal entry (Chart of Accounts)
Billing (Customers)
Invoice (Vendors)
Good receipt (Materials)
Manufacturing (Bill of Materials)
Journal entry (Cost Centers)
Journal entry (Profit Centers)
Payroll (HR Master record)
SAP
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SAP Basic Concepts Tables Relationship (Transactional Data)
Source: Google.com | Search for “sap tables pdf”
SAP
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Accounting on SAP
SAP Finance (FI) and Controlling (CO)
Accounting in SAP SAP ERP Financials Features
Tighter control of overhead
Analysis of profitability
Accurate prediction of future
Cost
Profitability
Standardize business processes
Improved transparency
Single version of truth
Improve control of project initiatives
Accurately and timely reporting
Standard
process
Transparency
Control
Analysis
Prediction
Reporting
Accounting
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Accounting in SAP Financial (FI) and Managerial Accounting (CO)
Fall 2015
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Accounting
What is Managerial Accounting?
There are seven key differences between financial accounting and managerial accounting:
Users: Financial accounting reports are prepared for external parties, whereas managerial accounting reports are prepared for internal users.
Emphasis on the future: Financial accounting summarizes past transactions. Managerial accounting has a strong future orientation.
Relevance of data: Financial accounting data should be objective and verifiable. Managerial accountants focus on providing relevant data even if these data are not completely objective and verifiable.
Less emphasis on precision: Financial accounting focuses on precision when reporting to external parties. Managerial accounting aids decision makers by providing good estimates as soon as possible rather than waiting for precise data later.
Segments of an organization: Financial accounting is concerned with companywide reports. Managerial accounting focuses on the segment reports. Examples of segments include: product lines, sales territories, divisions, departments, etc..
Managerial accounting–no externally imposed rules: Financial accounting conforms to GAAP and IFRS. Managerial accounting is not bound by GAAP and IFRS.
Managerial accounting–not mandatory: Financial accounting is mandatory because various outside parties require periodic financial statements. Managerial accounting is not mandatory.
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Accounting in SAP Finance (FI) and Controlling (CO)
HR
PP
SD
FSCM
CO
MM
QM
PM
FI
PS
Finance and Controlling
Human Resources and Payroll
Purchasing &
Inventory
Quality
S&D
Plant Mnt
Production Planning
Financial accounting (FI) is meant for external reporting.
FI is structured and mandated by legal requirements.
Management Accounting (CO) purpose is for internal management information regarding cost and revenue
Accounting
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Finance (FI) and Controlling (CO) FICO Modules and Corporate Finance
FI-AP
FI-GL
FI-AR
TR
AM
PCA
CCA
IOA
PC
PA
Controller
Treasurer
Cash Manger
Credit Manager
Financial planning Manager
Tax Manager
Cost Accounting Manager
Financial Accounting Manager
FI
CO
TR
Accounting
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Finance (FI) and Controlling (CO) Relationship/Dependency
CO is the foundation for managerial accounting and it is closely intertwined with FI
CO controls the Sales, COGS and expense to determination the profitability element on the balance sheet which is controlled by FI
CO
Profit Centers
FI
Assets
Liabilities
Equity
Sales
COGS
Cost centers
Expense
Sales
COGS
Expense
Accounting
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SAP Finance (FI) Goal
Financial accounting is designed to collect the transactional data that provides a foundation for preparing the standard portfolio of reports.
In general, these reports are primarily, but not exclusively, directed at external parties.
Standard reports include:
Balance Sheet
Income Statement
Statement of Cash Flows
Accounting
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Assets
Fixed
Liabilities+ Equity
Equity
Current
Current
Long term
SAP Finance (FI) Sub-modules
Accounting
General Ledger (GL)
Accounts Receivables (AR)
Accounts Payables (AP)
Asset Management (AM)
Use to record the financial impacts of business process steps. It constrains the data for financial reporting.
Is associated with the fulfillment process and is used to manage money owned by customers for good and services sold
Is associated with the procurement process and is used to managed money owned by vendors for the purchase of materials and services
Is used to record data related to the purchase, use and disposal of assets.
SAP Controlling (CO) Goal
Managerial accounting – termed controlling – is designed to collect the transactional data that provides a foundation for preparing internal reports that support decision-making within the enterprise.
These reports are exclusively for use within the enterprise and include:
Cost center performance
Profit center performance
Budget analysis
Accounting
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SAP Controlling (CO) Sub-modules
Accounting
Cost center Accounting (CCA)
Profit Center Accounting(PCA)
Internal Order Accounting (IOA)
Product Costing (PC)
Profitability Analysis (COPA)
Use to control the cost incurred in the organization by department
Use to control the profit and losses of the organization by business
Use to control certain types of cost that requires monitoring through out the business process
Use to plan for the cost of materials
Use to evaluate profitability by market segments and classify them by multiple dimensions (sales org, business areas, plant, company code, etc)
Summary of Lecture
Finance concepts
Business organizations, goal of finance management, agency cost
Introduction to SAP
SAP and their offering?
ERP and the definition of business processes
The kind of business processes and its impact on finance
Silo effect
Difference between master and transaction data
Understand Accounting in SAP
The goal of SAP Finance (FI) and SAP Controlling (CO)
The difference between SAP FI and SAP CO
SAP Navigation
SAP Navigation SAP Logon Screen
Click on the icon in your desktop.
If not, Find and double-click on the icon depicted on the left side of this page that you can find on your desktop. If it is not there, choose Start ► All Programs ► SAP Front End ► SAP Logo
Select system ID: Mongoose
Navigation
SAP Navigation User Logon Screen
Enter the following information:
Client: 112
User ID: LEARN-XXX
Password: TampaPas
Enter a new password
Navigation
Enter Client, Server and Password
Client is a numeric field and this number represents a whole business entity.
Users are client specific which means that having a user identification in one client will only allow access to that particular client.
The system settings are stored in a file on your machine called the saplogin.ini file. This file is normally preconfigured centrally and then made available to all the users. Once you have been provided with the SAP Logon, you need a username and password to logon to the SAP system. The username and password is unique for each user and you do have the option to change your password using the New password button available on the screen.
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SAP Navigation Application Tool-bar
Enter icon
Command (T-code)
Save icon
Back button
Exit button
Cancel button
Print button
Find/Expand icons
Scroll icons
Create a new session
Create a desktop shortcut
Help icon
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2
3
4
5
6
7
8
9
10
11
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Navigation
Learning objective: basic navigation
You have an option to start an application by directly entering its transaction code in the command field which is hidden as default.
The push buttons in the standard toolbar are shown on every SAP screen. The push buttons that cannot be used in a specific application are deactivated. You can view the flag with the name or function of the push button if you place the cursor on it for a few seconds.
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SAP Navigation User Settings
User specific settings
Use tcode SU3 to define your defaults settings
Language: EN (English)
Decimal notation: 1,234,567.89
Date format: MM/DD/YYYY
Save your entries
Navigation
SAP Navigation SAP Easy Access Structure
The left side of the screen contains a tree hierarchy of the menus available to you in the SAP system.
The menu bar
Logistics
Materials Management
Purchasing (PU)
Inventory Management (IM)
Sales and Distribution (SD)
Production (PP)
Quality (QA)
Accounting
Financial Accounting (FI)
Financial Supply Chain (FSC)
Controlling (CO)
Human Resources (HR)
The transaction code (T-code)
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1
2
Navigation
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SAP Navigation Favorites Folder
If you frequently use a transaction, you can use drag&drop to add it to your favorites (or choose Favorites ► Add).
You can then double-click it to run it without having to navigate through the SAP Easy Access menu. Furthermore you can add folders, reports, files and web addresses as favorites.
Navigation
SAP Navigation Transaction code
Every business transaction (not every screen) has a corresponding transaction code in SAP.
To display transaction codes choose Extras ► Settings and select Display technical names
You can use various control parameters to influence what happens to the session when you call a transaction.
/n. Exits current transaction
/o. Opens a new session
Navigation
SAP Navigation Screen Features
Manu Bar
Title Bar
Customizing display bottoms
Entry
Required field
Default entry field
Optional entry field
Tool bars
Message bar
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1
2
3
4
4
5
6
Navigation
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SAP Navigation System Messages
E –Error
An invalid entry has been made. The cursor moves to the field where the error has occurred.
W-Warning,
Indicates a possible error. The user can continue without changing.
I –Information
Confirms a transaction was posted.
A –Abnormal End,
Indicating serious system error.
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Navigation
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SAP Navigation System Help
F1 Key. It give you help about fields and technical information by providing explanations for fields, menus, functions and messages
F4 Key. It gives you information and possible entries
Further help can be found in the help menu. Choose Application Help for context-sensitive help on the transaction you are currently using. Choose SAP Library to open the online SAP Library. You can also access it on the Internet at help.sap.com
Navigation
SAP Navigation Logging Off
For security purposes it is important to log off SAP at the end of the day or whenever you leave your PC.
Your username is linked with every transaction you perform to provide an audit trail.
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Navigation
When reviewing transactions or running reports the username of the person responsible for entering or maintaining system information is displayed.
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Financial AccountingManagerial Accounting
1. UsersExternal persons whoManagers who plan for
make financial decisionsand control an organization
2. Time focusHistorical perspectiveFuture emphasis
3. VerifiabilityEmphasis onEmphasis on
versus relevanceobjectivity and verifiabilityrelevance
4. Precision versusEmphasis on Emphasis on
timelinessprecisiontimeliness
5. SubjectPrimary focus is onFocus on
companywide reportssegment reports
6. RulesMust follow GAAP / IFRSNot bound by GAAP / IFRS
and prescribed formatsor any prescribed format
7. RequirementMandatory forNot
external reportsMandatory
Sheet1
| Financial Accounting | Managerial Accounting | ||
| 1. Users | External persons who | Managers who plan for | |
| make financial decisions | and control an organization | ||
| 2. Time focus | Historical perspective | Future emphasis | |
| 3. Verifiability | Emphasis on | Emphasis on | |
| versus relevance | objectivity and verifiability | relevance | |
| 4. Precision versus | Emphasis on | Emphasis on | |
| timeliness | precision | timeliness | |
| 5. Subject | Primary focus is on | Focus on | |
| companywide reports | segment reports | ||
| 6. Rules | Must follow GAAP / IFRS | Not bound by GAAP / IFRS | |
| and prescribed formats | or any prescribed format | ||
| 7. Requirement | Mandatory for | Not | |
| external reports | Mandatory |
