SAP FICO Training - Complete SAP FICO Video Based Course

hi welcome to the first training of SPF SEO module this is a video based training and it covers complete SPF SEO module let's start with what we will be doing in today's training today's training is divided into three parts first an overview on the SPF SEO module second we will be covering the course contents and in third we'll be taking up a practical example in the SPF SEO part and we'll see how it works within the ESP system as life now as discussed the table of content which includes SPF SEO overview and then the course content the course content is divided into two parts one is FA sub modules overview and then the controlling some what deals overview and then the other topics now moving on to the SPF is your module overview SPF SEO module refers to the Finance which refers to Fi and the controlling which is Co module fi ants you are the core modules of SP system fi which is Finance refers to financial accounting whereas Co refers to controlling and generally it is termed as the managerial accounting fi is updates for external reporting and Co is used for internal reporting purposes the module is tightly integrated with sales and distribution module which is called st where is material management which is called mm module so fi Co is very much tightly integrated with the st and the MM module part this Fi and zo are two different sub parts which is termed as we have seen when is termed as FA which is for external reporting purposes whereas Co which is for internal reporting purposes this will now this diagram will give you a better picture of the FI Co part there are two kinds of reporting been done that is external and internal accounting or reporting as you can see on the on the diagram on the picture that the external parties over here are the external parties who need various informations from the company's accounts in finance department whereas within the box these are the internal parties which need informations for internal purposes like for auditors they need accounts and the financial statements for auditing perspective similarly for Texas oddities they need different text related information which is a part of fi that is financial accounting similarly stockholders banks legal authorities these all needs the financial statements that is profit and loss account in the income statement and which has been generated from the external accounting that is SPF a module whereas for internal reporting like administrators or the management managers controllers to control various cost within the company they need the internal reports which is a part of controlling module so these are two different parts which we will be taking up in two different parts in which we will be first taking up the fa module and then after that we'll be going to the CEO module because without fa module you cannot implement Co module in any any organisation as all the data flows from the FI that is the finance and accounting to the controlling part or to the managerial accounting part moving on the training which we are going on which you will be taking up will include these three things one is step by step configurations step by step transaction processing and a step by step report generation whatever the efface your whole course or the complete FSU module part will be providing you each and every configuration the steps what you have to do what kind of a configurations to be done and once you have done the configuration we will be going for transaction processing so as to check that whatever the configurations are done are successful and up to the mark and will be able to deliver the results and once you have completed the configuration under transactions then we will be looking for the reports as the various reports are needed within an organized for external reporting as well as for internal reporting so moving on to the next now these are the various topics in the fa module which we will be covering this is the part of the course content the course content is divided into two parts when is Fi and another is U so in the FI sub module overview it includes your enterprise structure general ledger accounting then accounts payable accounts receivable bank accounting assets accounting so if you go to these one by one the enterprise structure as you can see on the screen is the organizational structure that represents an enterprise in the ACP system it is a portrayal of an enterprise hierarchy where there is a client and then there is a company and the company code that the business area and the functional areas whereas moving on to the next is your general ledger accounting the general ledger accounting holds all the accounts for balance sheet and income statements the ledge general ledger accounting includes your chart of account account grow master data then posting journal entries recurring entries accrual and deferens parking reversals and mass reversals then again interest calculations and clearing a note of clearing financial statement versions and reports so this is a part of general ledger this is just an overview what we'll be covering as a course content and later on we'll be going for each of these topics in detail how these have been done again moving on to the next accounts payable accounts payable which is basically related to the vendors or the suppliers in this it is a real-time integration with the general ledger part then it's integrated with the material management as a part of your procurement cycle and it includes your outgoing payment program then the vendor master data invoice posting payments down payment then the period and Ear and activities and the various reports related to the vendors or supply as you can see if we move on to accounts receivable now in this also it is a real time integration with the general ledger it is highly integrated with sales and distribution module and then material and management module as a part of sale cycle the receivables includes customer invoice posting incoming payment down payment from customer then interest calculation on the customers if the payment has been delayed the dunning for sending notices to the customers for their payment due then the pier and year and activities and the various reports related to customers bank accounting bank accounting which includes all your banking transactions like incoming payment from the various parties than the outgoing payment to suppliers and others and to employees all those will be covered in this so we'll be including your banking configurations then the cheque management how the cheque have been issued where it has been been maintained within the ACP system if the cheque has been bounced how he would you believe how we would be dealing with that and how we can get the reports related to the cheques and related to the banking balances and all those will be deal in it then automatic payment run can also be done bank reconciliation a real-time bank reconciliation is possible in other SOP system and then the cast journal which includes your d to recast transactions the next comes is the asset accounting asset accounting is a real-time integration with the general ledger and it is also highly integrated with different other modules like material management accounts receivables then accounts payable and the cost accounting or we can say controlling that is the CEO mature asset accounting we will be including the asset master data various asset transactions like purchasing of assets retirement of asset to scrap then transfer of asset from one department to the department or one place to another place within the organization how Debra sees in calculation is done then again the period end and ear and activities to be taken care of and the various reports with India's asset accounting part so these are the major modules in the SP fi part and apart from this will be taking up other topics with the SI p fi co fa part which you should be knowing you should know as a as a consultant like sale and purchase text the different kind of a Texas been imposed by the the government or by the legal authorities or they take securities related to sale in purchases I've been taking here over here then the withholding takes part which take care of the Texas on your or text deposit on your withholding takes refers to the text deducted at source so the amount of text which is detected on your income or the salaries which has been deposited to the gum and directly by the employer so that will be taken up within the withholding text part even the vendor payment and when they invoice have been subjected to the withholding text all the tedious will be taken up in this then they are various foreign currency valuations will be taken care like the fluctuation in foreign currencies and the foreign currency transactions if your your particular company's currency dealing in the in in dollars and suppose you are having transaction in euros or yen or some other currencies how you would be taking care of that so that will be taken care in the foreign currency valuation part then again the financial statement version which take care of your finance is a statement how it will be reflected how you want to see your financial statements within the ICP system you can design that so that is financing the statement version and broadly in the FA part what are the different ear period and the ear and activities we will be taking care of that as a consolidated part and part from this another important part is integration with other now the integration includes Fi and Cu that is the financial accounting and controlling module in degrees and then the FI n mm that is the material management that refers to procure-to-pay and fi energy that is ordered to cash so a real-time transactions flows from various modules in the fi module for for the reporting perspective and that is why this integration is very very important to be taken care of any it's very important for you to understand this very seriously so this is a part of ASAP fi module content which we'll be covering and moving on to the next is your SP Co overview and the SPC of content which you will be taking here in the training path so controlling is the term by which SP refers to managerial accounting controlling provides information for management decision-making it basically refers to the minimizing the cost and maximizing the profit through actual and plan analysis so they are various major reports which gives you the status of what were the actual spends actual cost and what were the plan cost and accordingly the analysis can be done that where the cost has been exceeded in Y and it has been exceeded and the things have can be taken care of that so it is a fully integration with other modules controlling and financial accounting are independent components in the asset assist but yet they are very much linked to each other as due to the integration paths the data flow between the two components take place on a regular basis that is a real-time basis so moving on to the course content which we'll be covering up in the controlling module that includes your cost element accounting fic or reconciliation so the reconciliation over here is done on a real-time basis you don't have to go for any manual reconciliation of fi NCO it will be done by the system automatically on the real time cause Center accounting in the cost center accounting will also look after the cost Center planning how it has been done so you can also plan for your cost or for your expenses which have been incurred in the organization the next come up is the profit Center accounting then the internal orders internal order planning product costing and profitability analysis if you understand if we just go for a brief of each of these so if we move on to cost Center accounting the first part as a Content in the controlling the costs in the revenue element accounting provides an overview of the cost and revenues that occur in an organization most of the values are moved automatically from financial accounting to the controlling part cost Center accounting the cost cent of accounting is for controlling purposes within your organization it is useful for a source related assignment of overhead cost to the location in which they occur cause enter accounting defines the smallest area of responsibility within the company that causes and influence the cost the lowest level to which you can meaningfully assign direct and indirect cost so basically cost center accounting in a simple words take care of your different cost or expenses that have been incurred we can have the report with the basis of this cost centers then comes the profit Center accounting profit Center accounting is providing the opportunity to analyze and report to the management regarding internal profitability of subunits so as many profit centers you create within a particular organization it gives you more lip more options to analyze the profitability of those particular sub unit parts so it is profit center can be otherwise can be termed as a company within a company where you can get different reports or even you can generate financial statements for that particular profits a profit center which you have defined to a subunit part so profit center can be set up according to your product line or divisions even as per your geographical factors or reasons and offices also and it could be even function like production and sales so it depends how the organization wants to reporting how the management wants its profitability to be checked within internally and accordingly they can go for designing their profit centers then fill moving off to the internal orders internal orders are normally used to plan collect and settle the cost of internal jobs and tasks internal orders are used for short-term purpose like job fairs project etc whereas cost center are used for long-term purposes to capture the day-to-day cost so you can even assign budgets for these jobs which the system monitors to ensure that they are not exceeded moving to the next is product costing product costing is the process of tracking and studying all the various expenses that are accrued in the product in the production and sale of a product it's roughly comprises of the raw material expenses process cost like wire gas or electricity which has been consumed and other elements such as transportation tool cost staff cost welding etc so overall it the product costing basically is used for costing a product so it basically includes the the all the manufacturing expenses all the expenses which have been incurred on manufacturing of a product so as to know what is the cost of a product manufactured whereas profitability analysis profitability analysis enables us to analyze the profitability of market segments according to the following characteristics like products customers sales districts and others so if you want your profitability to be analyzed as per different market or different segments you can define those market segments as a product so you can analyze your profitability product to product wise or even if you want the market segments to be define as customers so you can calculate or you can even analyze the profitability from customer to customer or even it can be as per the region wise like you can define the profitability for market segments like US East or US ways west or even the whole country as US and the country to country you can take different as a segment and accordingly you can can you can have a reporting analysis that from which particular product or customer or region you are getting more profit from the business so these are the basic major sub modules in the controlling part apart from this we'll be covering some of the important topics for SPF ICO and these are certain parts which you will not get anywhere else as a training part because these are something which is highly advanced topics which nobody pro has been interested to give an overview or a full nel knowledge regarding topics like tables and fills overview so table and fields overview basically is technicals about fi Co how the ways data have been used how they have been saved and then with the basis of those data how a customized report can be created so if you want to create anything as a customized apart from the standard recipe system you must have the knowledge of tables fills apart if you don't have that you will not be able to do any customization in the SOP so to give you a better more idea in esse P whatever the data with punch or we whatever the transactions we do into the asipi system basically the transactions are saved at the backend with different tables and if you want to know there are more than 400 million tables in SP where the data is stored from different modules so over here we'll be looking after what are the different FA and co tables which are important to four different transactions will be taken currently table in the fields overview moving to the next is SP fury SP fury is a new technique a new technology which has been taken up by SP and with the help of SP fury Espie is able to provide you different applications so that you don't have to stick to your your personal PC or your desktop system or to your to your office seat that for doing any particular work you need to be to be on on that particular restricted mode know s if it's you different applications and with the help of those applications you can do your work wherever you are you are not being restricted to a particular per personal computer or a tablet or a mobile phone you can go parallel to any of these options now and you can do your work wherever you are it is not a necessity that you have to reach back to your seat or to your purse to your PC so as to get those particular work done just like for an example if a manager has to approve the leaves or the project or to the travel request of any of the employees or colleagues in that case he don't need to go back to a simpie system for those approvals if he has got those applications on his phone with the help of a CD fury which is a sippy has tried and provided many of the different applications the manager can do his jobs on the move from his mobile phone or from a tablet as well so there are different new applications within the SPF SEO module also which I in the market and people have been able to use that with their tablets and with it with this smartphones as well so it is what will be looking after in the asipi fury what it is all about and what are the different applications which are they in the market which will be used as an application on a smartphone or a tablet on or on a PC as such moving to the next is LS MW l smw is basically a legacy system migration workbench this is one of a very important tool from SCP which is used for data migration data migration which is a part of any implementation project whenever we go for any implementation project of any any SP from then in that case you need to move the data from the legacy system of decline to the HCP system so to do that this Alice MW is very very helpful and with the help of LS MW only we move those data are from the legacy system to the ASAP system so that now the client can will be able to use the SCP system for the future reference and the next comes up is the report painter so report painter is again a tool for various information systems for Finance and controlling module basically the PUD painter is been defined or has been created for controlling what you so all the different reports in controlling have been created with the help of report painter and it is very simple and easy to use and any anyone can easily create their reports within the asipi system so there are different reports there are different modules for whom for which the reports have been created in the report painter only from the controlling side like there is cost center accounting profit center accounting product costing or maybe internal order or profitability analysis so whatever the kind of reports you need out of these different modules those reports can be directly created in the report painter and in that case the functional consultant is not dependent on the technical that is the app consultant for their programming for the new report so you can create your new reports of its own however sp even provide many of those standard reports in the report painter also for the controlling part and now these days even the report painter is used for SPF I part as well for different financial reports so if you want you can create your financial reports with the help of report bender easily into the system so this is what we have done with the first and the second part we have we have covered the overview on their face you module and then we have these are the different course content that we'll be covering in the SPF I and CEO module and these are certain important topics apart from that like table fills yes if you fury LS MW and report painter which will be as a extra topics for you so as to learn extra things which will be which will be giving you few extra fruits from the training part so now we'll be moving to the third part that is a practical example so we'll be taking up a practical example which will give you a more understanding of how the SOP system works so what we'll be doing is we'll be moving with the first sub module in the SPF a path that is enterprise structure and we'll see how those structure can be created within the ACP system so if you talk about a structure as whenever you you go for any of the implementation project or any of the project you are working with you first need if you want to create those things it in the in DSP system you need to first define a layout that how you will be taking up things in the ACP system so what will be your company what will be the business areas what will be the declined and all those things so you need to have a structure organizational structure that there will be a group companied and the group will have how many number of companies will it have and then within that what are the different functional areas and business areas so we'll be discussing those all things one by one so if you talk about the enterprise structure as you can see the diagram on the screen this structure is something like this that there is a client and within the client in which we work there is a group company in group company as if it is called as a company then within the group company there are a number of different company codes the company codes refers to the legal entities with which we have been working with and those legal entities can be defined in the ACP system as the company code and then the different business areas so we'll be discussing each of these things one by one so these are the different configuration steps that need to be defined within the enterprise structure like you need to define a company then you need to define the company code and you need to put these together as a link so that they can decide among each other that how they are related to each other so we need to assign the company to the company code and then defining the business area and then define the credit control area and assigning the credit control area to the company code so let's take this one by one if we move on to the first configuration step that is to define the company if talk about a company companies the smallest organizational unit for which individual finance statements can be drawn up according to the relevant commercial law basically in essa Peka knees are referred as company what is in general terms we'll talk about a particular company as a legal entity but in S opee there is a slight change that the group companies are termed as company in the asipi system a company can consist of one or more company codes that means a company can consist of one legal entity or it can have more than one legal entities so if you have got number of different legal entities or organizations they are together termed as company in the asipi system all company codes within a company must use the same chart of account and the same fiscal year so that will talk about once we will be at the chart of account part now moving on to the next is company code so the company code is again the smallest organizational unit of financial accounting for which a complete self-contained set of accounts can be drawn up for purpose of external reporting so whenever you go for any external reporting part this company code becomes entity this includes recording of all relevant transactions and generating all supporting documents required for financial statements so company code basically refers to a legal entity or you can say any an organization so if you got if you have got number of different legal entities they all together is termed as a company in esse P and one single entity is termed as a company code so how we can create this company and company code in the ACP system that is what we will be looking for so now let's move on to the ACP system and we'll see how we can create these so now moving on to the ACP system one thing which need to be discussed is whenever we go for configuration steps how you will be configuring it there are two way out of going for any of the configuration steps one is with the help of menu path which gives you a path one to one how we can reach to that particular configuration step and the another part is transaction code transaction code is a four character code by execution of that you can directly reach out to the screen to which you want to do the configuration but for each different configuration part there are different code for that so that is why remembering the transaction code is very tough that's why we refer it that we should always use the menu path so as that will give you a better idea and you will be able to remember it for a longer period of time so - moving on to the path this first an important transaction which need to be executed and that particular transaction is termed as s P ro this s PR or transaction is very important for a consultant without this without excess of this to you you will not be able to do any configuration steps in the asipi system so you need to first execute this transaction over here in this transaction filled s P ro and then enter so once you enter it takes you to the next screen and you can see now the screen has changed to customizing execute project this particular screen is a very important screen in this screen you will find three options over here one is SP reference IMG and another is IMG information and then the project analysis now what is important for you is the first option that is SP reference IMG in this d IMG refers to the implementation right so this is the tab which takes you to the implementation guide where we do all the configurations related to the implementation part or related to any of the configuration part so once you click onto this SP reference IMG now it will take you to the next screen where you will find all the different module options so this is the screen now which displays UD IMG that is implementation guide and this is the guide where every consultant does their configurations as this particular screen covers all your different modules as you can see for financial accounting there is fi module is there then if you go for controlling is there they are different other modules like sales and distribution material management quality management then project system production planning so all different modules you will find over here only now what we need to do is we need to structure ah we need to create our own enterprises structure so for enterprise structure you will find even that you there is an option of enterprise structure on this particular screen so what we need to do is we need to expend this part to expand you need to go to this arrow over here and you to click on to that and it will expand so once you have clicked onto this it has been ik it has explained now if edom again click on to this it will collapse so you need to go to this enterprise structure and you need to expand it and then you need to go to definition so once you again click on to this definition it will get expended and within definition you will find there are different options so what we need to do is we need to go to financial accounting as we are doing SP fi module so we need to expand the financial accounting and as you expand now you will find a number of different options so here you can find define company so if you want to create your own company that is your own group company then you need to go to this define company so the path is simple first you need to go to execute the asset SPR o transaction code and then you need to go to s P reference IMG and f2 click on that and it will take you to this particular screen and once you reach onto the screen you need to then click on to the enterprise structure then to financial to definition and then to financial accounting and then to define the company now if you want to define the company you need to execute this option over here as you can see this symbol you need to click on to it and it will take you to define company so now click as clicked on to it you can see now a new screen has been generated on the system and now you can go and you can create your own group company over here so suppose I want to create a group company I can go to this new entries and once I click on to this new entries now there are certain options coming on your screen so this company over here is over here you need to define a maximum of six character code that can be taken up so if you want I can take it as 1 0 0 0 0 0 has a code or even if you want you can have a smaller 1 SL so suppose I take a code as 2 0 0 0 as a group code and over here you can define a company name that is the group company name suppose I take the group company name as ABC group and the simple part and then you need to move on to the next and you need to fill your street box and all those things suppose I take this street as one two three a box number over here then the postal number you can take whatever you is to and then you can take this city as suppose I take it as Texas and then you can select your country there are options you can go to this select options and will give you all the country list so you can find the list of the companies as on the screen dad around 256 entries that means they are around 256 countries has on this and you can select your own country over here suppose I take it as United States so that is the US you have taken it and if you want to now select the language and you do not know what language has to be taken then you can go to this option over here or the f4 key on your keyboard and once you click onto that it will give you the list of different languages available in essa P so if you'll find there is again 41 entries found that means there are 41 different languages in SP can be used in so we need to go to this English language and now we can select this language as English and then you can go to currency now to decide the currency you need to again go for f4 option on the keyboard so that you can get the list of currencies so they are around 240 14 entries that means they are 214 currencies within the asipi system on which the transaction can be done so for the currency over here we need dollar so you can find USD that is United States taller which can be taken up so double click on it and it will be selected so this is are the parameters which you need to fill up over here and once you have filled these now I can go to save the option over on the screen so once you save your company will be defined so as I clicked on to the save option and the system asked me for a request so whenever you do any of the configuration our customizes in steps if the system will always ask you for a request so what you need to do is you need to go to this new that is create request and you can create a request of you own like I am putting up a request like creating or I can simply say customizing SF v fi Co simple and I can save it now so what will happen now is whatever customized is in which we will be doing will be saved in this request and on the basis of this request only these customizations move to the next client from one client to the another client and to the live system so now we can click on to this right button or enter on the screen and it will be taken up in the request so you can see now the message generated data was saved that means the company has been defined and now we can go back with this back option over here on the screen back or the f3 key can be used to go back so once you go back you can find the option over here that your company or your group company 2 0 0 0 has been defined and the name of the company has also been reflected to your way up so this is how we have created or we have defined a company now moving to the next is the company code now we have created a group company now company over in SP refers to a group company now moving on to the next we'll be defining a company code a company code is the legal entity or the smallest organizational unit in the financial accounting and on the basis of this company code only all the different financials accounting transactions are done so for financial accounting part company code is the most important because without a legal entity you cannot maintain any finances or any any financial statement or accounting in SP or any other software for that matter so will now create a company code or a legal entity in the NCP system so let's move on to again to the ACP screen and in the same part you will find in the same path over here there is an option of edit copy delete check company code so this is for creating the company code so what we need to do is we need to execute this company code over here so once you execute the company code you will find a pop up a screen which gives you two options one is copy delete check company code and another this edit company code data so now what we need to do is we need to go to the second option that is edit company code data so once I double click on to the edit company code data it takes you to the next screen and you can see now change view company code overview in this to create your own company code or your own legal entity in sp you need to go to the new entries so once you click on to the new entry it will take you to the next screen that is as you can see on your system so now over here you can define your company code or your legal entity so suppose my legal entity is again it can be a four character maximum of four character code so it can be alpha it could be numeric as well so it is preferred to have a numeric code so I will be having two one zero zero and I can name it over here the company name as so suppose I take the name of the company or the legal entity as ABC Consulting LLC and I take the city now over here's Texas and then you can take the country as US and your currency is USD and your language is e and that is English and these are the options which you have taken and now we can go and we can save this option so as you will go for save the system will ask you further more details related to your entity so as I save now now you will find that a new screen or the new pop-up has been generated now in this unit TOEFL you need to fill the further details Liggett related to the entity as a legal entity has their respective addresses telephone numbers a particular name and all those details which need to be filled over here so you can select the title their titles could be any of these like a select s company so I need to put the name again ABC Consulting LLC and now if you want a short term you can give a short text with like ABC if you want you can put the country at is US and then within the US you can select the reason to which reason that particular company belongs to there's many different country names over on your screen Alaska American Samoa California Florida and all Hawaii then Indiana Illinois owes a lot of different names so whichever reason you feel you can take that up over here suppose I take it as NY that is New York so that is what has been taken now moving on you can fill your options like address over here as well whatever you need to fill it as so you can take all those things like I have taken even you want to change city then you can change your reason also over here as per the city now so you can search for Texas so that is over here TX that is Texas reason has been taken up and now if you want you can fill these further details on the below part however these are optional you can fill or you can leave them blank also but it is better if you have the details it should be filled so that these data can be picked up in any of the reports and other details but if you leave them blank you will not be able to generate these things in anywhere any reports or any printout or anything as such so it's up to you if you want to put the communication detail over here you can put the communication details as well else we can move on and we can click on to this the green write tick mark or we can enter on the screen and this data will be taken out so entered so you can see now the data has been taken up in the requests now so the same request will be taken up now and in the same request we'll be saving again and again the same customization however we can create multiple requests for the same as well but we don't need it at this point of time so we'll be taking it in the same request number the customization of company code also and now we can click on to this continue and your configurations are saved with the request so you can see the message has been generated data was saved so now we have created a company code also that is this step which has been done so now moving to the configuration steps the first step we have completed we have completed the second one as well and now we need to move on to the third configuration step that is to assign the company to the company code so if you don't assign one company to the another company to the company code you will not be able to correlate or you cannot you will not be able to put a relation to each other so that is why we need to assign these to each other so that the relation can be set or the link can be set between one another so for the assignment now we need to go back to the path we can clone we can now close this this pop screen over here and then we have moved now over here onto the screen so you can see now there are certain options like define or definition and then assignment so for creating any any configuration step in the enterprise structure we need to go to the definition and for assigning one to another we need to go to the assignment so let's go to the assignment explained and then expand the financial accounting part also and once we have expanded the financial accounting you can find the first option that is a sign company code to company now we can go and we can click on to this symbol or execute and now once we have it we'll take you to the next screen so over here you can find your company code on the first column this is C OCD which refers to come in code and you can find your company code is over here - 1 0 0 and your cities Texas and now we can define the company so the company means the group company so you can assign the group company over here so now we can go if you don't remember your group company what was the code what was the four digit or six digit character code you had then you can go to this option over here click on it and it will give you the list of different companies within the SFA system so you can see now the one which we have created was 2 0 0 0 that is ABC groups and we can enter on it so once entered this particular company has been selected over here so you can see now the company code - 1 0 0 has been assigned with the company - 0 0 0 and now we can save this screen so once you save the relationship is set and the assignment is done as you can see a sign company code - company so now the company code has been assigned to the company as you can see the message data was saved that means the relationship law has been saved so this is how we have defined the assigning the company to the company code and now moving on to the next is defining the business area so now before moving on to defining the business a that is important to understand what is business area all about so business area is an organizational unit of financial accounting that represents a separate area of operations or responsibilities within an organization and to which value changes recorded in financial accounting can be allocated even with the help of business ADA you can create financial statements and you can use this statements for various internal reporting purposes so in simple terms a business area is used to divide your business or your organization business into different operations or responsibilities or it can be can be reasons or can be branches also or even a more practical example can be taken that like in a manufacturing concern they have got different number of plants for manufacturing purposes so every plant can be given a business area so what happened with that is that when every plant has got a business area so whatever the transactions which take place in the asipi system for any of the plant they need to they need to put that particular business area while posting those transactions so those business area become mandatory for those plants whenever they do the transactions to put the business area so when you put those business area as a mandatory part the every transactions get recorded with the that business area so with that business area we are the organization is able to find the financial statement for a particular plant also so it gives you an advantage that till before SP the organization was been able to have the financial statement as a for a legal entity but now the enterprise Rd the organization can have financial statement as per the plant also on the basis of the business area so they can they can simply have a look of the financials and they can decide the income statement the liabilities and the assets of a respective plant and they can analyze accordingly as per the different plant to plant but financial status or financial statement health similarly you can divide your final business area that is one of the scenario that you can use the business area as a as per plant to plant and practically this has been has been used in many of the clients which has been done so otherwise you can even use business area for different reasons also so every reason can be given a business area so for that particular reasons for that particular transactions that business area has to be assigned or has to be put in so that the transaction can be posted with the business area basis and it will be able to generate reports for reason to reason why is also so how we can do in the asipi part let's see how we can create the business area so moving on to the HCP system to create we need to again go to the definition part so we need to go back to this definition then expend moving to the finals and accounting then again expanding it and in this you can find define business area so once you want to go and define the business area you need to click on to this symbol and now you can see the screen has been generated so over here you have got the option now that you can go to new entries and it is up to you whether you want to go for the business area as per plan twice or as per the reason wise or as per the branch number wise or as for the different operations so it varies from client to client or from organization to organization as per the requirement so suppose I create a business area of two zero zero zero and then 2 0 1 0 similarly you can create 2 0 2 0 2 0 3 0 and you can name them as different reason or different plant like I gave it as plant one the next can be given a bass plant too similarly you can give it as plant 3 the third one and you have any plant a specific name then you cannot even assign the plant name away as well so these are the different plant name has been assigned I have given these are the name wise you can put a different plant to plant description accordingly and once you have created these you can go and you can save this screen so once you say if your business area has been defined so this is how you need to create your enterprise structure that we have been talking about a while back so this is what we have been talking about that you need to create a group company that is a company necessity then you need to go for creating a business a company code and within the company code you need to create business area so within a company code you can have n number of business area depending upon your requirement how you want to have those reports or the reporting has to be done so the most important part is business area is used is that at the end of the day at the end of the month you can have reports you can have the financial statements and even the income statements on the basis of the business area and which can give you a a reason to reason or plant to plant wise details detailed financials and the management can take internal decisions on the basis of that so moving up to the next step of the enterprise structure is credit control area the credit control area is an organization entity which grants and monitors a credit limit for customers a credit control area can include one or more company codes so the credit control area is used as a credit management for the accounts receivable and sales and distribution part in the asipi system so as to restrict the credit limit to the customers and it can be reviewed the credit limit can be monitored for the customers and it can be changed later on as better as per the credit ability of the customer accordingly so you need to maintain the credit control area with respect to the customers for the company code so using the credit control you can minimize your credit risk by defining a credit limit for the customer and in that case the chances of getting bad depths or chances of getting the outstanding receivables or bad dips can be minimized so you can define or you can assign the same credit control area to more than one company code as well even and the same credit control data can be used for multiple company codes but one particular company code Canon cannot have multiple credit control area so to a company code only one credit control area can be assigned so let's see how we can create a credit control area into the ACP system and as per the configuration steps as you can see we need to define the credit control area and then we need to assign the credit control area to the company code as well so that the relationship can be set and the credit control area can be becomes applicable to the company code the credit control arrays here we can execute now we can define our own with the help of new entries so in this we have to fill a four digit alpha four character alphanumeric code not suppose I put up again is 1200 why because I always want my company code to be taken up the same code with the others so as not to get confused with too many codes currency USD you don't need to fill the this particular part because this is for sales and distribution module now coming up next risk categories again you don't have to take it this is been defined with the help of credit management which is a different module what you have to do over here is just to define the credit limit for the customers so the limit which you define over here suppose I put it over here is 1 million that can be taken up over here has a tolerance for the customers has been defined now I can save this so the tolerance for the customers have been defined as 1 million if you want to increase it you can increase it over here if we want to reduce you can reduce it as well now after it we can save it over here data was saved means your tolerance your credit control area has been defined now you need to assign the credit control area to the company code so moving up we have not in other description need to be filled for the credit control area so we always have to put it over here suppose my company code is 1200 so I put it as 1200 and now we'll be saving it again going back now I need to assign it to the company code so I have to go to the assignments of collapsing definition and then going to the assignment expanding spending the financial accounting and then assigning company code to the control area so execute and in this search your company code with the position your company code is 1200 and now over here you can define your credit control area which you just create it if you don't remember you can press the f4 button on your keyboard and the list of all the grade control yeah will be reflected in which you can search your own and you can double click on that and it will be selected over here now once this has been done you can save it and your linkage between the grade control area and the company code is defined so as of now we have completed with the enterprise structure setting this is your organizational structure and that is what we have defined in s appeases now as we have seen so we can go back now as you can see the plant 1 2 3 4 has been created so this is how you need to create your enterprise structure similarly and this is what all about which we have covered in the first training of the SPF SEO part so we will see you with each of these topics covered from the next training sessions so till then take care thank you

Channel: SAP Training by T E K V D O . C O M

Views: 557,483

Rating: 4.8739667 out of 5

Keywords: SAP FICO Training, SAP FICO, SAP FICO Videos, SAP FI Training, SAP FI, SAP FI Videos, SAP CO Training, SAP CO Videos, SAP FICO Tutorials, SAP Financial Accounting, sap training, sap online training, sap fico video tutorials full, sap fico tutorial for beginners, sap fico training videos, sap fico tutorial, learn sap fico, sap fi training videos, fico sap training, sap fico training full video, sap fico full course, sap fico training - complete sap fico video based course

Id: 0b8FtP9x5_c

Length: 64min 55sec (3895 seconds)

Published: Sun Jan 18 2015