Configuring SAP® ERP Financials and Controlling (Peter Jones, John Burger(auth.))（Z-Library）

Configuring SAP® ERP Financials and Controlling

Configuring SAP® ERP Financials and Controlling Peter Jones John Burger

Acquisitions Editor: Agatha Kim Development Editor: Kim Wimpsett Technical Editor: Charles Soper Production Editor: Elizabeth Campbell Copy Editors: Judy Flynn, Candace English, Liz Welch Production Manager: Tim Tate Vice President and Executive Group Publisher: Richard Swadley Vice President and Publisher: Neil Edde Book Designer and Compositor: Maureen Forys, Happenstance Type-O-Rama Proofreader: Amy Morales Indexer: Nancy Guenther Project Coordinator, Cover: Lynsey Stanford Cover Designer: Ryan Sneed Cover Image: iStockPhoto Copyright © 2009 by Wiley Publishing, Inc., Indianapolis, Indiana Published simultaneously in Canada ISBN: 978-0-470-42328-8 No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per- copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at . Limit of Liability/Disclaimer of Warranty: The publisher and the author make no representations or warranties with respect to the accuracy or completeness of the contents of this work and specifically disclaim all warranties, including without limitation warran- ties of fitness for a particular purpose. No warranty may be created or extended by sales or promotional materials. The advice and strategies contained herein may not be suitable for every situation. This work is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional services. If professional assistance is required, the services of a compe- tent professional person should be sought. Neither the publisher nor the author shall be liable for damages arising herefrom. The fact that an organization or Web site is referred to in this work as a citation and/or a potential source of further information does not mean that the author or the publisher endorses the information the organization or Web site may provide or recommendations it may make. Further, readers should be aware that Internet Web sites listed in this work may have changed or disappeared between when this work was written and when it is read. For general information on our other products and services or to obtain technical support, please contact our Customer Care Department within the U.S. at (877) 762-2974, outside the U.S. at (317) 572-3993 or fax (317) 572-4002. Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in elec- tronic books. Library of Congress Cataloging-in-Publication Data Jones, Peter, 1953 October 9– Configuring SAP ERP financials and controlling / Peter Jones, John Burger.—1st ed. p. cm. ISBN 978-0-470-42328-8 (cloth) 1. SAP ERP. 2. Accounting—Computer programs. 3. Accounting—Data processing. 4. Investments. I. Burger, John, 1970- II. Title. HF5679.J635 2009 657.0285'53--dc22 TRADEMARKS: Wiley, the Wiley logo, and the Sybex logo are trademarks or registered trademarks of John Wiley & Sons, Inc. and/ or its affiliates, in the United States and other countries, and may not be used without written permission. SAP is a registered trade- mark of SAP AG in Germany and several other countries. All other trademarks are the property of their respective owners. Wiley Publishing, Inc., is not associated with any product or vendor mentioned in this book. 10 9 8 7 6 5 4 3 2 1

Dear Reader, Thank you for choosing Configuring SAP ERP Financials and Controlling. This book is part of a family of premium-quality Sybex books, all of which are written by out- standing authors who combine practical experience with a gift for teaching. Sybex was founded in 1976. More than thirty years later, we’re still committed to producing consistently exceptional books. With each of our titles we’re working hard to set a new standard for the industry. From the paper we print on, to the authors we work with, our goal is to bring you the best books available. I hope you see all that reflected in these pages. I’d be very interested to hear your comments and get your feedback on how we’re doing. Feel free to let me know what you think about this or any other Sybex book by sending me an email at , or if you think you’ve found a technical error in this book, please visit . Customer feedback is critical to our efforts at Sybex. Best regards, Neil Edde Vice President and Publisher Sybex, an Imprint of Wiley

I would like to dedicate this effort to my wife, Lisa, for her unwavering support and help. Without her sacrifice of the time it took to complete this process, I would not have been able to focus on rewriting this book and getting the best possible result. —Peter Jones To my wife, Christine, who has supported me and has never questioned why I felt it necessary to write at the strange hours that I do. Thank you. —John Burger

A C K N O W L E D G M E N T S would like to acknowledge the help and support of SAP during the writing of the second edition of this book. Without the ability to use my experience and knowl- edge in the FI and CO areas that I developed over the time that I’ve been with SAP, I would not have been able to complete this book. Nor would I have been able to offer appropriate views of the current system for FI and CO. I would also like to acknowl- edge Frank Weiss, who was instrumental in my introduction to SAP and the areas of FI and CO. —Peter Jones I would like to acknowledge a few of the mentors who I have been fortunate enough to have over the years, without whom I would not have had the experiences that would have permitted me to write this book. They are Richard Groenewald at SafMarine in Cape Town, Robert Schmidt and Michael Spandau at Deloitte Consulting in Southern California, and Alix Zirbel at McKesson in San Francisco. Lastly, I would like to thank Agatha Kim, the acquisitions editor, who supported me through this interesting and challenging process. —John Burger I

A B O U T T H E A U T H O R S Peter Jones is a principal/platinum business applications consultant with SAP Professional Services Consulting specializing in Controlling (CO), Enterprise Controlling (EC), Auditing, Business Intelligence (BI), Strategic Enterprise Management (SEM) and Corporate Performance Management (CPM), Enterprise Information Architecture, and Enterprise Data Warehouses. He has more than 10 years of consulting and educational experience in a variety of strategic and lead- ership roles, focused on Controlling, Profitability Analysis, Strategic Enterprise Management, Corporate Governance, Data Warehousing, Business Intelligence, and Business Analytics. Peter’s diverse professional background includes not only consulting experience but also participation in the academic areas of Finance, Controlling, Data Warehousing, Enterprise Management, and Corporate Governance. He is serving as an SAP principal/platinum business consultant for areas including CO/BW/SEM. He has been involved with numerous implementa- tions for BI and ECC, from the Blueprint phase to the Go-Live Process. His respon- sibilities include being a subject-matter expert in all the areas listed earlier; an active presenter at conferences including ASUG, BI conferences, and Shappire; and editor/ writer for FICO Expert and BI Expert. Along with consulting, he has been involved with the academic world in developing and presenting numerous topics for the University Alliance, which included topics in the areas of CO, BI, Auditing, and SEM. He has a master’s degree from Drexel University in finance and is SAP certi- fied in the areas of FI, CO, BW, and SEM. Prior to SAP, he owned his own business for 15 years working in the area of accounting and finance. John Burger has a dual finance and law degree from Rhodes University. He has more than 20 years experience in finance and SAP consulting. John’s career has spanned the ship fleet and cargo freight management, high-tech, management con- sulting, and pharmaceutical industries. John has 10 years of experience as a SAP consultant. As a consultant, John has serviced several Fortune 100 companies and led suc- cessful initiatives encompassing major SAP implementations, business process reengineering, and mergers and acquisitions of multibillion dollar companies. The projects resulted in him working in seven countries, across four continents, imple- menting solutions in all of the modules within FI/CO, including ABC and COPA. He now works at McKesson, a Fortune 18 company.

C O N T E N T S AT A G L A N C E Introduction xxiii Chapter 1 Configuration Tools 1 Chapter 2 Financial Accounting Enterprise Structure 29 Chapter 3 General Ledger 95 Chapter 4 Accounts Payable 171 Chapter 5 Accounts Receivable 225 Chapter 6 Financial Supply Chain Management 275 Chapter 7 New GL Accounting 323 Chapter 8 Controlling Enterprise Structure 353 Chapter 9 Cost Element Accounting 391 Chapter 10 Cost Center Accounting 445 Chapter 11 Internal Order Accounting 553 Chapter 12 Profitability Analysis 643 Chapter 13 Profit Center Accounting 749 Chapter 14 Investment Management 803 Chapter 15 FI Closing Cockpit 835 Appendix A Useful Transaction Codes, Tables, and Programs 885 Index 901

C O N T E N T S Introduction xxiii Chapter 1 Configuration Tools 1 Introduction to SAP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 SAP Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 SAP Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 A New Approach to System Customization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 SAP System Environment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Transports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 The Implementation Guide (IMG) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Other Methods of Table Maintenance and Customizing. . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Finding the Table to Configure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 The Data Browser and Common Tables to Display. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 The Service Market Place . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 Modifications to SAP Source Code and User Exits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 Chapter 2 Financial Accounting Enterprise Structure 29 Chart of Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30 Fiscal Year Variant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 Posting Period Variant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40 Company Code Configuration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42 Creating New Companies by Copying Existing Company Code . . . . . . . . . . . . . . . . . . . .53 Configuring International Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54 Business Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59 FI Validations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Functional Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68 Functional Area Organizational Elements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68 Functional Area Substitution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69 Advanced Validation and Substitution Configuration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .80 Validations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .81 Substitutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .81 Setting the User-Exit Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .81 Validations and Substitutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82 Sales and Use Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .87 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .94

X V I C O N T E N T S Chapter 3 General Ledger 95 Continuing with the Chart of Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .96 Account Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .96 Configuring G/L Account Master Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .100 Copying and Transporting G/L Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110 Field Status Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 Posting Key Configuration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119 Automatic Account Determination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .124 Sales/Use Tax Automatic Account Assignment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .126 Intercompany Posting Automatic Account Assignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . .130 Materials Management Automatic Account Assignment . . . . . . . . . . . . . . . . . . . . . . . . .132 Sales and Distribution Automatic Account Assignment . . . . . . . . . . . . . . . . . . . . . . . . . .136 Financial Statement Versions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .137 G/L Display Configuration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .145 Line Item Layouts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .145 Special Fields . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .151 Sort Variants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .153 Totals Variants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .154 Posting Amount Defaults and Tolerance Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .156 Number Ranges and Document Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .159 Number Ranges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .159 Document Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .162 Transaction Default Document Type and Posting Key . . . . . . . . . . . . . . . . . . . . . . . . . . .165 Fast Entry Screens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .165 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .169 Chapter 4 Accounts Payable 171 House Banks and Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .172 Bank Account G/L Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .178 Check Lots and Void Reason Codes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .179 Payment Program Configuration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .182 Company Code Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .184 Paying Company Code Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .188 Country Payment Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .191 Company Code Payment Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .195 Bank Selection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200 Vendor Master Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211 Vendor Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223 Chapter 5 Accounts Receivable 225 Terms of Payment and Interest Calculation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .226 Interest Calculation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 229

C O N T E N T S X V I I Reason Codes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .245 Reason-Code Conversion Versions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .247 Default Account Assignments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250 Overpayments/Underpayments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250 Cash Discounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .252 Overall A/R and Employee Tolerances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254 Credit Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .257 Customer Master Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266 Customer Groups. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .267 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .273 Chapter 6 Financial Supply Chain Management 275 Biller Direct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .276 Process Integration with Accounts Receivable Accounting . . . . . . . . . . . . . . . . . . . . . . .277 Cash and Liquidity Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .285 Liquidity Planner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 296 Collections Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 298 Credit Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .321 Chapter 7 New GL Accounting 323 Overview of the New GL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .324 Initial Configuration Requirements of the New GL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .327 Configuring the New General Ledger Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .327 Configuring Ledgers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .338 Parallel Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 346 Master Data of the New GL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .349 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .351 Chapter 8 Controlling Enterprise Structure 353 The Controlling Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .354 Controlling Area Definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .356 Activating Component/Control Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .363 Assigning Company Codes to Controlling Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .371 Assigning Number Ranges to Controlling Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .373 The Operating Concern . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 380 Operating Concern Definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .381 Maintaining CO Versions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .382 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 390 Chapter 9 Cost Element Accounting 391 Cost Element Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .392 Primary Cost Element Categories. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .393 Secondary Cost Elements Categories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 394

X V I I I C O N T E N T S Creating Cost Elements Automatically . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 394 Defining the Default Settings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .395 Defining a Batch Input Session. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .398 Executing a Batch Input Session . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .401 Creating Cost Elements Manually . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 404 Imputed Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 409 Cost Element % Method. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .410 Overhead Costing Sheet Creation: Copy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .423 Reconciliation Ledger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .424 Activate Reconciliation Ledger. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .427 Clearing Account Creation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .428 Maintain Accounts for Automatic Reconciliation Posting . . . . . . . . . . . . . . . . . . . . . . . .432 Assign Reconciliation Activity to a Number Range . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .436 Reconciliation Ledger Cost Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .439 Explanation of CO Updates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .441 Real vs. Statistical Postings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .441 Corrections and Other Topics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 443 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 444 Chapter 10 Cost Center Accounting 445 Introduction to Cost Center Accounting Configuration . . . . . . . . . . . . . . . . . . . . . . . . . . . . 446 Cost Center Accounting Standard Hierarchy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 447 Adding New Hierarchy Nodes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 449 Changing, Moving, and Deleting Hierarchy Nodes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .453 Controlling Area/Profit Center Accounting Maintenance. . . . . . . . . . . . . . . . . . . . . . . . . . . .455 Profit Center Accounting: Creating the Standard Hierarchy . . . . . . . . . . . . . . . . . . . . . .458 Creating the Dummy Profit Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .459 Cost Center Basics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 460 Cost Center Categories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .461 Time-Based Fields . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 463 Creating and Changing Cost Centers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 465 Establishing a New Analysis Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .471 Making Additional Changes After New Analysis Period . . . . . . . . . . . . . . . . . . . . . . . . . .474 Activity Types and Statistical Key Figures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .475 Creating and Maintaining Statistical Key Figures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .476 Linking to LIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .478 Creating and Maintaining Activity Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 483 Assessments, Distributions, and Periodic Repostings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .492 Periodic Allocations: Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .493 Allocation Receiver Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 494 Assessment Cost Element . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .498 Allocation Creation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 499 Allocation Development Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 511

C O N T E N T S X I X Cost Center Accounting: Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .513 Controlling Area Settings/Version Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .514 Plan Revaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .518 Planning Allocations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .522 Planning Layouts: Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .523 Planning Profiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .538 Planning Profile Miscellanea. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .542 Assigning Accounts Automatically in CO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .543 Automatic Account Assignment Table: TKA3A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 544 Default Account Assignment: Cost Element Master Record Maintenance . . . . . . . . . .549 Account Assignment Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .551 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .551 Chapter 11 Internal Order Accounting 553 Configuring Internal Order Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .555 Controlling Area Maintenance for Internal Order Accounting. . . . . . . . . . . . . . . . . . . . . . . .556 Order Settlement Configuration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .557 Settlement Cost Element . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .558 Allocation Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .559 Source Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .569 PA Settlement Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .574 Settlement Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .576 Maintaining Number Ranges for Settlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .581 Order Settlement Configuration Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 584 Order Planning and Budgeting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 584 Internal Order Planning/Budgeting: Basics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .585 Internal Order Planning/Budgeting: Profile Development . . . . . . . . . . . . . . . . . . . . . . 589 Internal Order Planning and Budgeting Number Range Maintenance . . . . . . . . . . . . 605 Internal Order Status Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 608 Order Status Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 609 General Status Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 615 Order Type Development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .626 Defining Order Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .626 Defining an Internal Order . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .637 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 642 Chapter 12 Profitability Analysis 643 Costing-Based vs. Account-Based CO-PA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 645 Operating Concern Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .647 Operating Concern Attributes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 649 Creating Characteristics for Your Operating Concern . . . . . . . . . . . . . . . . . . . . . . . . . . . .651 Creating Value Fields for Your Operating Concern. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 662 Save, Activate, and Generate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 668 CO-PA Tables. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .673

X X C O N T E N T S Characteristic Derivation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .677 The Derivation Table. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .677 Derivation Structures and Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 682 User-Exit Characteristic Derivation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 688 Assigning Values to Value Fields . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 689 Mapping SD Condition Types to Value Fields (the SD Interface) . . . . . . . . . . . . . . . . . . 690 PA Settlement Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .695 Cost Center to CO-PA Assessments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 700 CO-PA Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .703 Planning Versions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 704 Planning Revaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .705 Planning Layouts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .705 Planning Profiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 706 External Data Transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 706 The Planning Framework in CO-PA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 711 Integrated Planning in CO-PA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .715 Planning Number Ranges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .717 Activating CO-PA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .717 CO-PA Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .718 Key Figure Schemes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .719 Forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .728 Creating the Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .738 CO-PA Transports. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .745 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .747 Chapter 13 Profit Center Accounting 749 PCA Configuration Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .750 Basic Settings and Master Data Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .752 Controlling Area Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .753 Analyze and Update PCA Settings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .755 Master Data Settings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .758 Assignments in Profit Center Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .761 Material Master Assignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .761 Fast Assignment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .763 Sales Order Substitution: Creation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .768 Sales Order Substitution: Activation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .770 PCA Assignment Monitor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 772 Actual Posting Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .773 Set Control Parameters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .774 Define Document Types: Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .776 Number Range Assignment: Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .779 Assign Revenue Elements to Profit Centers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .781 Choose Additional Balance Sheet and P&L Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . .782 Balance Carry Forward Indicator Maintenance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 784

C O N T E N T S X X I Profit Center Accounting: Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .785 Plan Version Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .785 Define Document Types: Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 790 Number Range Assignment: Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .791 PCA Planning Parameters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .792 Planning Parameter Creation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 796 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .801 Chapter 14 Investment Management 803 Investment Management Configuration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 804 Program Types, Investment Measures, and the Investment Profile . . . . . . . . . . . . . . . . . . 806 Creating the Program Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .807 Investment Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .813 Investment Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .814 Investment Management Planning and Budgeting Profiles . . . . . . . . . . . . . . . . . . . . . . . . .824 Investment Management Plan Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .825 Investment Management Budget Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .827 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 834 Chapter 15 FI Closing Cockpit 835 Overview of the FI Closing Cockpit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .837 Using Variants in the FI Closing Cockpit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .838 Development of Organizational Hierarchies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .842 Creating Closing Cockpit Templates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 846 Creating Tasks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .855 Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .858 Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .861 Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .861 Flow Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 868 Creating the Task List . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .875 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 882 Appendix A Useful Transaction Codes, Tables, and Programs 885 Index 901

I N T R O D U C T I O N he purpose of this book is to serve as an introduction to configuring (a form of cus- tomizing functionality) the Financials and Controlling modules within SAP. The FI (Financials) and CO (Controlling) modules are the backbone of most, if not all, SAP implementations. The reason is that most business events culminate in a financial impact. One of SAP’s biggest selling points is its integration capabilities. Integration, in this context, means that for any business event SAP automatically updates the related metrics, be they financial or management accounting metrics. Not only will you learn the foundational configuration elements involved in implementing the core of FI/CO functionality, but you will also learn configuration principals that can be utilized throughout SAP. Another of SAP’s strengths is its incredible breadth of functionality that it offers, both in terms of functions covered (business processes) and in terms of industries catered to. It is for these reasons that it is practically impossible to cover all the functionality or all the configuration options within the FI/CO modules. Instead, we illustrate the configuration theories and steps through the use of a hypotheti- cal business scenario. We use Extreme Sports Inc. to define the business require- ments that are configured and presented throughout the book. The “Case Company Background” section later in this introduction explains Extreme Sports’s business and organizational structure. As the configuration takes place, keep in mind that the screen shots and menu paths that are presented are based on version 6.0. It is important to note that the function- ality covered in this book is generally transferable across SAP versions. The reason is that a lot of the functionality covered is typical to most companies and has been offered through many releases of SAP (a.k.a. the core functionality). In addition, this book focuses on the configuration principals that enable you to understand the logic behind them, regardless of SAP version. Is This Book for You? This book is for anyone who wants to understand how to implement FI/CO, a cen- tral module to SAP’s Enterprise Central Component (ECC), formerly known as SAP R/3. The primary audience to benefit from this book are project implementation team members, developers, and SAP support organizations. We also encourage T

X X I V I N T R O D U C T I O N people who have expertise in other SAP modules to read this book, because it will help tremendously in terms of the understanding integration points. In addition, this book makes an excellent textbook companion for those colleges and universi- ties whose curricula covers SAP design and development. It will take you from the basic concepts all the way through to advanced configuration topics and techniques. How This Book Is Organized This book begins with an explanation of the FI module and its configuration. The similar but different CO module is covered in the same fashion. Each chapter is about a specific submodule within FI/CO. The chapters have been logically ordered so that prerequisite configuration has occurred before you begin configuring a new submodule. If you are new to con- figuration, it is a good idea to begin with Chapter 1 and proceed through the rest of the chapters in order. If you already have configuration experience, you can use the table of contents and chapter headings to skip to the appropriate subject matter. Conventions Used in This Book Throughout this book, we have used some basic conventions to help you understand our instructions. The menu path for configuration steps is included in the text of each chapter. In the appendix, you’ll find all the configuration transaction codes relevant to the topics discussed in book. We have based our project on one business model, Extreme Sports, for ease and continuity. Reference is made to standard SAP commands and button bars (green arrow, Save, Create, and so on). In each case, when we refer to a button, we’ll provide a screen shot that shows the button in question. The SAP course material is an excellent source for more information on the standard SAP nomenclature. Case Company Background One of SAP’s biggest selling points is the software’s flexibility in handling multiple industries and organizations regardless of the complexity of the business solutions.

I N T R O D U C T I O N X X V To accommodate this flexibility, it must allow for numerous solutions using the standard platform of tables and structures. And by introducing unique configura- tion settings for each implementing company, it addresses the need for complex solutions. It would be an impossible task to document the necessary configuration settings for every industry and every business solution. However, it is not inconceivable to pro- vide insight into how to interpret the options available to you when configuring the various modules in FI and CO. To assist in this endeavor, we will describe the configuration for a fictitious com- pany, Extreme Sports, as you progress through the book. Although the company’s configuration will be documented, the discussion will not be limited to that specific solution. We’ll discuss many options and field settings. When configuration must occur in a specific order, we’ll provide the proper sequence. We will now give you some background information about Extreme Sports and an example of its hierarchy solution. Extreme Sports is a U.S.-based manufacturer of sporting equipment and apparel. Founded in 1999, the company has seen its busi- ness grow 60 percent a year over the past three years. The revenues for 2008 were $1 billion. Extreme Sports’s sales organization consists of six regionally based offices located in New York, Chicago, Los Angeles, Atlanta, Seattle, and Kansas City. The sales organization employs approximately 250 sales representatives who sell six distinct product lines: ski equipment, ski apparel, mountaineering/hiking equipment, surf- ing equipment, surfing apparel, and custom boats. To compensate for the extraordinary growth it has enjoyed, Extreme Sports has expanded its manufacturing base from four to six plants. The last two plants have both been constructed in Mexico, and the company is considering building a third next year. Extreme Sports has made the decision to convert to SAP because of the fragmented nature of its current financial, profitability, and manufacturing systems. The corpo- ration consists of four legal entities: ES Ski & Surf, Inc.; ES Mountaineering, Inc.; ES Custom Boats, Inc.; and ES Mexico, S.A. In addition, Extreme Sports has decided to create a shared services organization to support the accounting, human resources, purchasing, accounts payable, and IS functions. The vehicle for this organization will be a fifth company called ES Services, Inc.

X X V I I N T R O D U C T I O N The corporation has moved all its legal entities to a calendar fiscal year, removing the 4-5-4 calendar previously held by ES Custom Boats, Inc. Here’s an illustration of the corporation as it was developed in SAP. Operating Concern ESOC Controlling Area EX01 ES Ski & Surf 1000 ES Mountain 1100 ES Boats 1200 ES Mexico 1300 ES Services 1400 EXCA—Chart of Accounts AES—Apparel Business Area EES—Equipment Business Area SES—Extreme Services Business Area Throughout the book, we will be providing you with the configuration settings to support Extreme Sports’s organization.

CHAPTER 1 Configuration Tools FEATURING: INTRODUCTION TO SAPÑ A NEW APPROACH TO SYSTEM CUSTOMIZATIONÑ THE IMPLEMENTATION GUIDE (IMG)Ñ THE SERVICE MARKET PLACEÑ Configuring SAP® ERP Financials and Controlling by Peter Jones and John Burger Copyright © 2009 Wiley Publishing, Inc.