| Financial Accounting — Overview | All about balance sheet and Profit & loss statement.
1. Post all financial transactions.
2. Keep them unchanged in the system for reporting purposes.
3. Meet the legal requirements of financial reporting standard. |
| Components of Management Accounting | 1. Product costing
2. Overhead management
3. Profitability accounting
4. Profit center accounting
5. Cost element accounting |
| Organizational Levels in SAP S/4HANA Financials | 1. Operating concern
2. Controlling areas
3. Company code
A CO area and its company codes must use the same operating Chart of accounts and the same fiscal year variant. |
| Segment | Segment is an organization unit; it controls some sub-activities. The aims of segment reporting are providing information about the general environment. The purposes are reviewing the company’s economic performance, improve the forecasting of the potential sales, and avoid risks and increase opportunities of that company. |
| Account Groups | Accounts with the same account group often have similar business functions.
They are assigned number ranges.
You can control account numbers through the number ranges.
It also can control the appearance of the company code segment of general ledger accounts. |
| G/L Account Type | Balance sheet
Non-operating expense or income
Primary costs or revenue
Secondary costs
Cash account |
| Profit Center Assignments | You assign a profit center to each object. When you post the data to the original object, the system automatically posts this data to the Profit Center. a profit center is the summary of all posted values for all assigned objects. |
| Functions of the Posting Keys | Each document line item contains one Posting Key (PK)
A Posting Key control the:
– Account type
– Debit or credit
– Layout screens
In short – PK determines how the item is posted. |
| Business Partner — General Data | SAP S/4HANA offers a single point of entry to create, edit, and display master data for business partners, customers, and vendors. It has 3 parts, Business partner category, business partner role, and Business partner grouping. |
| Payment Process | Select payment method and bank.
Select items for payment.
Calculate the payment amount.
Post the payment document.
Create payment media. |
| Asset Class | There are 3 classes, standard assets, assets under construction, low value assets.
Asset Classes are the most important means of building fixed assets.
Asset Classes apply to all Company codes. |
| Transaction Type | The transaction type is an addition to the asset posting keys 70 (debit) and 75 (credit). It
must be included when posting to an asset account. The transaction type is necessary for AA, which is asset acquisition. |
