SAP Controlling Information System

SAP Controlling Information System has some good reporting tools.Several totally different reporting tools are used in the Controlling Information System. Every report device has its personal options and range of applications.Report Painter permits you to create reports using data from CO and different R/3 application parts, which you may give you the option to adapt to satisfy your particular person requirements. Lots of your reporting necessities can already be met through the use of the usual studies supplied by the various CO utility components. If these standard experiences don't meet your reporting wants, Report Painter lets you define your specific stories rapidly and easily.Report Painter fulfills a perform much like Report Writer, but is much less complicated to use. A lot of the capabilities present in Report Writer have been built into Report Painter; however, you wouldn't have to be familiar with all Report Author concepts (such as Units) in order to use Report Painter.Drill down reporting is used in Profitability Analysis (CO-PA) and in Product Value Controlling (CO-PC).

This reporting software makes use of characteristics to categorize transaction data. Controlling area, company code, buyer, product group, order, and product are examples of characteristics. The time reference (fiscal 12 months, period) is also a characteristic. Key figures represent specific values of the categorized data. Examples of key figures include direct prices, gross sales, sales deductions, variety of employees, and sales quantity. You'll find a way to carry out calculations with key figures to derive values such as gross sales per worker and contribution margin.

The ABAP Checklist Viewer standardizes and simplifies the operation of lists within the R/3 System. It is used for line item reporting all through CO. A uniform interface and record format is available for all lists. It contains handy features for the dynamic creation of show variants. Utilizing show variants, you may change the format of your list. You may select fields to be added to the display, change the order of the fields, and modify the column width to suit your requirements.

Report Selection

Data is evaluated in Controlling by means of reviews which are provided in the standard system or that you define yourself.You select stories within the information system utilizing the report tree. The report tree comprises all reviews in an utility organized in a hierarchical tree structure.
There's a separate normal report tree in each software area in Controlling. The standard experiences for each utility space are assigned to the nodes of the related report tree. Along with the report tree in the standard system, you can also outline your personal report tree to which you'll give you the option to assign both commonplace reports and your own reports.

Report Writer

In addition to normal reports, you can too use Report Painter and Report Writer to define your own reports. You may then add these customized studies to your reporting tree.Within the interactive information system, you probably can evaluate posted knowledge immediately after its entry into the SAP R/3 System, and comply with its origins all the way down to the document level. Each Report Painter and Report Author reports offer a variety of options to display, kind, filter, and summarize the data.Report Painter has related capabilities to Report Author, but is simpler to use. A lot of the features of Report Author have been integrated into Report Painter, however generally have been designed to be extra intuitive and finish-user oriented.Report Painter experiences will be edited through the use of Report Author, but can then not be maintained by Report Painter. Report Author experiences can't be modified by Report Painter. While you use Report Painter to create your personal studies, you outline the report column and row construction and general information selection. Report Painter can entry the data out of an extract, immediately out of the info base, or out of an archive.The variation characteristic makes it doable to create an individual report for every element of a bunch that you defined within the basic information selection. For example, you presumably can create a person report for the total summary node and every group node in a price center hierarchy.

All studies accessible on-line will be executed within the background at predefined times. This could be significantly helpful throughout a process equivalent to interval-finish reporting, where a number of stories are executed for various customers all through the organization. This characteristic means that you just can process massive quantities of data in periods of lower system use.

Total Values and Line Items

Within the R/3 System, a distinction is made between line gadgets and totals records. These are recorded in separate database tables.A line merchandise is entered for each business transaction. You'll have the option to access these line objects utilizing the line item report.For reporting, all the line objects entered for business transactions are mechanically saved in totals records . The amounts are totalled in the R/3 System based on the price middle/cost component or value center/cost component/exercise type and permits information to be evaluated extra quickly. You may analyze the totals data using a Report Painter/Report Writer report.Usually, you'll analyze a value center using a Report Painter report. For those who require detailed data for particular price components posted to the cost heart, you can call up the corresponding line items.The line item report shows the actual prices, plan costs or commitments as line items and as primarily based on the posting documents. This information is displayed as an inventory (output listing display).

Interactive Information System

You ought to utilize the interactive data system to total and analyze all, or chosen enterprise transactions, in response to varied standards (for example, cost middle / cost ingredient).The totals data within the Report Painter report are usually analyzed, however typically the road gadgets from the summary report are also chosen and examined. You might also move from the road items to the corresponding supply documents. The supply doc may be an FI doc, or for example, an accounting doc from a re posting.You'll be able to call up other studies utilizing the Report/Report interface.

User Settings

You can specify general and consumer-particular default values for the selection standards, and the report currency. The benefit of person settings is that more than one, or all values that you just normally want to enter before executing a report group are routinely displayed. Once you name up a report, the R/3 system checks to see in case you have made all the required entries. If that's so, then the report might be executed without any entries required within the choice screen.You presumably can enter the next default values:
  1. Primary data (controlling space, value heart, or price heart group, cost aspect, and so on)
  2. Settings for extract management
  3. Planning time frame
  4. Reporting time frame
  5. Report foreign money
  6. Other specs, equivalent to, the version

Line Item Report

The R/3 system provides you with standardized show variants. You can define extra variants for global or consumer-specific use.You can select as many fields as required from the group of accessible fields (together with customer specific fields) for a display variant that's enterprise-specific.You want to outline the merchandise (column) within the report, and the column width for each field.Relying on the column width, the R/3 system robotically uses the quick textual content or long text from the sector name. It also uses your log-on language if this is accessible for the report.You presumably can select an ascending or descending type sequence for each column.You presumably can outline filters for every column. Rows that fulfil filter standards usually are not displayed. However, they are included in the totals and subtotals calculation.You'll find a way to outline totals interactively, by selecting a column after which totals. It's potential to select multiple column at a time.

In drilldown reporting you can summarize information in response to the characteristics, after which drill down interactively. At each level of the report, you can display the drilldown list (overview) or detailed data (margin evaluation).The features of drilldown reporting are divided into three ranges in an effort to give each user solely those capabilities that he or she requires.Stage 1 comprises the fundamental functions of drilldown reporting, plus it permits you to send reports by SAP mail.This degree is designed for users who do not require the full performance of drilldown reporting.Degree 2 accommodates the rest of the drilldown functions, plus it enables you to display graphics and download stories to Microsoft Excel.All capabilities affords you all of the capabilities in drilldown reporting, together with the print setup function and the functions for saving report knowledge and defining exceptions. This level is designed for customers who must print and modify reviews in addition to all the interactive drill down functions.

Data Source

For those who save reports in extracts , then you may have sooner access to the info saved. Report extracts for groups assist navigation in the group with the "Variation" function.It is attainable to select data from the database to create an advert-hoc report with probably the most present information.It is usually possible to learn from archive data. Reports are used for offering archived information.To create extracts, you may select Create extract earlier than you run the report, or you'll have the ability to choose Yes on the dialog box that appears when you exit the report. The selection parameter and the time of the report definition mechanically characterize the extract.In Extract Management in customizing, you specify the user-specific settings for the data access.The following options are supplied for this:
  1. New choice : The system re selects the info and doesn't use existing extracts for the specified selection criteria.
  2. Show extract :If current extracts fulfill the choice standards, then the R/3 system displays them in a dialog box for selection. If not one in every of the extracts fulfill the criteria then the R/3 system uses the current data records.
  3. Automatic display of the present extract :The R/3 system automatically displays probably the most present extract. You probably can display all the extracts in an summary, or you'll give you the option to print or delete them, or change the expiration date .

Using the Report Painter

The Report Painter functionality is utilized in a quantity of completely different areas of Controlling.The Report Painter is used to create and execute experiences in the Overhead Value Controlling, Product Value Controlling, and Revenue Middle Accounting components.The performance of Report Painter is also utilized within the definition of planning layouts in Overhead Value Controlling, Profitability Analysis, and Revenue Center Accounting.Drill-down reporting additionally makes use of Report Painter functionality in the definition of forms.Forms are utilized in drill-down reporting within the Product Value Controlling, Profitability Evaluation, and Revenue Middle Accounting areas of Controlling. A kind determines the content and formal construction of a report. A form will be regarded as a semi-completed report, which you complete by specifying (further) characteristics and key figures when you define the person report. The content material of a type is generally fastened and changes only below rare circumstances. Once you change a type, it impacts each report that makes use of that form.

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SAP Financial and Controlling Overview

The general term “Accounting” can be used to explain numerous different capabilities and enterprise processes. The R/3 system provides an architecture of specialized accounting components to deal with these diversified functions.The Treasury component (TR) focuses on capabilities corresponding to money administration, treasury administration (including money market funds, international exchange, derivatives and securities), loans, and market danger management.The Monetary Accounting part (FI) focuses on General Ledger accounting (G/L), Accounts Receivable and Accounts Payable processing, and Fixed Asset accounting.

The Funding Administration component (IM) supplies functions to help the planning,investment, and financing processes for capital investment measures.The Enterprise Controlling part (EC) consists of Profit Middle Accounting, the Govt Information System (EIS), Enterprise Planning (for group-extensive business plans at a excessive level), and EC Consolidation.The Controlling part (CO) offers a variety of instruments that can be utilized to provide operational information to the administration of an organization to help business evaluation and choice-making.

The R/3 System software part Controlling (CO) accommodates all accounting features necessary
for efficient controlling. If a corporation divides accounting into internal and exterior viewpoints, CO represents the inner accounting perspective, as a outcome of it provides data for managers those that are inside a company and are charged with directing and controlling its operations.CO includes value and revenue accounting. Along with the Enterprise Controlling (EC) software parts Profit Heart Accounting (EC-PCA) and Government Info System (EC-EIS), CO covers all facets of managerial accounting. It gives a broad selection of functional tools that could be used to provide managerial accounting data without being restricted to authorized requirements. Financial statements required for external reporting functions (e.g. steadiness sheet and P&L assertion) are created in FI. These external reporting requirements are sometimes established by general accounting requirements like GAAP or IAS, as properly as varied authorized requirements mandated by regulatory authorities.

Reporting Requirements

Whereas there are often completely different accounting data necessities for inner and exterior customers,a lot of the underlying data could additionally be relevant for each purposes. However that very same knowledge may be introduced in very different ways to fulfill the completely different requirements.Standardized accounting meant for exterior customers is typically termed “financial accounting”.The time period “management accounting” usually refers to the non-standardized accounting strategy that helps the management resolution-making process. Monetary accounting stories sometimes required embody the revenue assertion (or profit & loss statement), and stability sheet. Administration accounting reports may be fully uniq ue, though a
frequent instance could be departmental precise vs. plan costs for the current accounting period.

Components of Financials

External and inner accounting are separate accounting systems which can be interrelated but give consideration to totally different methods and dimensions of research to help various varieties of decision making.External accounting is known as monetary accounting. It produces the monetary statement view of the organization.Inside accounting is known as managerial accounting or controlling. It focuses on inside efficiency of the organization.

The Monetary Accounting element meets the worldwide demands of a firm's monetary accounting requirements utilizing an open, integrated data movement and simplifies monetary resolution making.l All postings between different functions in the R/3 system are made actual-time. For instance, for those who submit to the "Accounts payable" sub ledger, the system automatically makes an updating entry to the common ledger.The R/three Monetary Accounting part is split into the following areas:
  1. FI-GL General Ledger Accounting. The central job of G/L accounting is to provide a complete image of exterior accounting and of the accounts concerned therein.
  2. FI-AP Accounts Payable. A/P administers the accounting knowledge for all vendors. It is usually an integral part of the buying system.
  3. FI-AR Accounts Receivable. A/R administers the accounting information of customers. It is usually an integral a half of sales management.
FI-AA Asset Accounting This module encompasses your complete lifetime of assets from the preliminary acquisition as a lot as the retirement. The system calculates the values for depreciation,curiosity and different values. FI-SL Special Function Ledger offers abstract data from multiple functions at a stage of detail that is consumer defined.Funds Administration Helps monetary checking and management using budgeting techniques.Travel Administration The Travel Administration module affords a full range of procedures for processing enterprise trip information, from getting into and approving a journey request, to posting the precise trip costs. Integration with Controlling (CO) and Payroll Accounting (HR Payroll) ensures correct and efficient posting, taxation and cost of journey costs.


The aim of the Treasury system is to make sure efficient liquidity, portfolio and threat administration for companies,from a business viewpoint.It helps processing and accounting for financial investments and borrowings.The link with external information programs (corresponding to current financial market information via an online information feed ) enables you to recognize dynamic changes in monetary markets and react to them.TR is divided into three sub-areas:
  1. TR-CM Money Management allows for daily money standing management and short and medium term forecasts of cash position.
  2. TR- Money funds management or Dedication Accounting - is a budgeting software permitting the structured administration of money budgets.
  3. TR-TM Treasury Management -gives management of international trade, derivatives, and different forms of securities and hedging.

The general ledger accommodates a file of all relevant accounting transactions from a business point of view within the G/L accounts. So as to retain a clear overview, the general ledger often comprises collective postings. In such circumstances, the knowledge posted is displayed in additional element within the subsidiary ledgers, which give their info to the general ledger in summarized type:
  1. Accounts Payable data all accounting transactions for dealings with suppliers. A lot of its knowledge is obtained from procurement (Supplies Management).
  2. Accounts Receivable data all accounting transactions for dealings with customers. Much of its information is obtained from Gross sales and Distribution. . Asset Accounting records all accounting transactions regarding the administration of assets.
  3. Journey Administration manages and calculates travel costs and supports journey planning and journey expenses
  4. Bank ledger supports the posting of cash flows.
All G/L account postings that submit to business expense accounts routinely send the bills as costs to Controlling. The balances of G/L accounts are used to calculate monetary statements.

Components of Controlling

The assorted CO components can be labeled into different groups. The classification signifies the normal objective of a given component. Administration of an enterprise requires the utilization of completely different tools for different situations. If you need to research revenue, for instance, then you want a device acceptable to the view you want to take (e.g.: by product or by accountability middle). The Profitability Management component group has two tools (parts) which are out there for addressing this enterprise want (Profitability Analysis and Profit center Accounting).Equally, the Overhead Price Controlling and Product Cost Controlling component groups provide tools acceptable to different sorts of business requirements.

How can we cut back our overhead costs? Overhead Price Controlling (CO-OM) is the CO component that gives instruments to help answer that question. In lots of organizations, overhead costs have taken an enormous upward jump, together with prices which the group cannot assign directly to either merchandise or services. While manufacturing areas usually display nice progress in controlling prices and optimizing processes, overhead continues to show little cost transparency, so it's difficult to get a transparent image of why these costs are incurred.What prices happen within our organization? Value Element Accounting (CO-OMCEL) classifies the prices and revenues which are posted to CO, and provides the aptitude for reconciliation of costs in CO with the Financial Accounting (FI) module.What are the manufacturing costs of a product? Product Cost Controlling (CO-PC) has two main areas of focus. It is used to develop estimates of what it will value to supply a product (or even a service). It also has capabilities to track the precise prices of production, and provides in depth tools for value analysis.How profitable are individual market segments? Profitability Analysis (CO-PA) supplies a spotlight on the results of an organization’s doing business with the external marketplace. It supplies the ability to define which facets or segments of that market are related for analyzing working results, akin to revenue by buyer, product, geographic space, sales group, etc. And it offers multidimensional drill-down reporting, to provide extremely flexible views of working results.

How worthwhile are particular person enterprise areas? Profit Middle Accounting (EC-PCA) supplies a focus on internal areas of a company which have responsibility for reaching sure revenue or productiveness goals.Price and Income Component Accounting (CO-OM-CEL) is part of the Overhead Cost Controlling component group. It provides the structure for task of CO information via the classification of transaction line objects in response to the nature of the price or income being posted to a given controlling object (e.g. cost center, inner order, etc.).The price flows in CO can le ad to the necessity for reconciliation between inside and exterior accounting in sure cases. Price and Income Aspect Accounting is the CO part providing performance that helps this doable requirement. The Reconciliation Ledger provides reporting capabilities for figuring out the variations in prices between FI and CO, as effectively as a tool for creating reconciliation postings to FI, if desired.

Overhead Maintenance

Overhead Price Controlling has three components. Every addresses certain facets of analyzing and controlling overhead costs. Overhead prices are defined as prices that cannot be assigned directly to price objects (e.g. manufacturing orders, etc.).The percentage of overhead in complete prices has risen sharply in recent years. The number of employees employed in overhead areas grew from 25-30% within the 1950's to more than 50% today. Overhead has grown in both manufacturing and service organizations. Analysis in the United States revealed that overhead makes up approximately eighty% of the prices in the machine and electronics manufacturing industries. As overhead grows, the proportion of instantly assignable production costs shrink. Consequently, it is becoming increasingly vital to investigate and management overhead costs.Similarly, more and more subtle instruments are wanted to facilitate the applying of overhead to manufacturing orders and other price objects.

Cost Center Accounting

The Value Center Accounting element (CO-OM-CCA) tracks where prices happen in your organization. The cost heart is an organizational unit in a controlling area. Value centers might be defined in accordance with several completely different design approaches. A typical approach could be for an enterprise to outline a value middle for every low-stage organizational unit that has accountability for managing costs. As prices are incurred, they're assigned or posted to the suitable price center.These prices might embrace payroll costs, rent and utility costs, or every other prices assignable to a given value center.Each value center is assigned to a class, e.g. Administration value heart, manufacturing price center, etc. Every cost heart grasp report has a subject for the title of the individual answerable for the price center.The posting and task of prices to price centers not solely makes managerial accounting potential;however is a vital step for using the opposite Controlling components. As noted above, cost facilities could be set up based on completely different design approaches, including functional necessities, allocation criteria, actions or companies offered, geographic location and/or space of responsibility. However whichever approach is selected, it needs to be constant throughout the enterprise.Price facilities could be grouped together to supply abstract value information. Actually, a elementary requirement for implementing Price Center Accounting is the creation of a normal hierarchy for a controlling area. The usual hierarchy consists of all value facilities in that controlling area, and supplies the flexibility to research summary prices at every node of the structure.

Internal Orders

An Inner Order is an especially flexible CO device that can be used for a extensive variety of functions to track prices and, in some instances revenues, within a controlling area. Inner orders provide capabilities for planning, monitoring, and allocation of costs.Internal orders may be used for a wide range of functions, and could be grouped into four normal classes:
  1. Overhead orders: Used to watch overhead costs incurred for a specific objective, corresponding to conducting a trade fair, or monitoring prices for maintenance and restore work.
  2. Investment orders: Used to monitor costs incurred in the creation of a exhausting and fast asset, equivalent to building a storage facility.
  3. Accrual orders: Used to offset postings of accrued prices (costs calculated in CO) to price centers.
  4. Orders with revenue: Used to interchange the price accounting elements of SD customer orders if SD just isn't being used, so that each costs and revenues may be tracked; or to observe revenues not affecting the organization's core enterprise (equivalent to miscellaneous revenues).
Activity Based Costing

Traditionally, overhead prices are allocated from price centers to price objects by manner of numerous strategies, reminiscent of surcharges and exercise allocations.By contrast, Activity-Primarily based Costing assigns prices to business processes, without regard for which organizational models could additionally be concerned in generating these costs. A course of is a cross-purposeful object, which can pull sources from any value heart in a controlling area.ABC has been applied in R/3 as an enhancement to the fee administration functionality. All overhead costs are still assigned to price centers. The fee facilities that make the most of resources in carrying out a process allocate the value of those sources to the process. (Instance: a Purchasing price middle would allocate prices it incurred in preparing and distributing a Request for Quotations to a Procurement business process.) The processes are then consumed by cost objects (comparable to manufacturing orders) and the related prices are allocated to those value objects. Process costs not associated to value objects are handed along to CO-PA with the intention to present a extra correct and complete accounting of overhead costs.Value Heart Accounting answers the question of the place costs occur, whereas Exercise-Based Costing solutions the question of why (for what goal) prices occur.

Product Cost Controlling

Product Cost Controlling is concerned with all features of planning the price of producing merchandise or services, in addition to monitoring and analyzing the precise prices that are incurred in the manufacturing process. Product Price Controlling consists of the following elements:

Product Price Planning is used for preliminary costing and can reply the next questions:
  1. What shall be the value of producing a certain services or products?
  2. Is external procurement inexpensive than in-house production?
  3. What are the prices of manufacturing, if we assume a actually perfect scenario? This estimate might then be used as a baseline towards which we are in a position to evaluate different “real world” manufacturing scenarios.
Price Object Controlling focuses on monitoring the precise direct costs of production and the interval end closing process.Precise manufacturing costs are accumulated as raw materials are issued and labor is performed. This info permits detailed comparisons between the deliberate cost and the actual cost of any given manufacturing phase.Interval end closing procedures embrace the application of overhead costs, calculation and posting of the value of products still in manufacturing (work in course of), calculation of variances between customary and actual costs, and settlement of variances to the CO-PA, EC-PCA and FI modules.Actual Costing / Material Ledger is used to calculate precise prices for each materials at the end of the period. Supplies and their actions are valued with a standard worth during the period. Any variances from this customary are collected in the materials ledger when invoices are acquired or orders settled. During interval finish closing these variances are used to calculate an actual value for the material within the closed period. Postings might be made in FI to replicate this price.

Product Cost Planning refers again to the creation of value estimates for the manufacturing of products or services. If a quantity construction (Bill of Materials and routing) is available within the PP (Production Planning) module of the R/3 system, you presumably can create a price estimate automatically utilizing the PP data.If no quantity structure is available in R/3, the price gadgets could be entered manually by the use of unit costing, or could be transferred routinely from a non-SAP system utilizing batch input.In Value Object Controlling, the prices incurred in the production of a services or products are collected on a price object (akin to a manufacturing order). Various varieties of price objects can be utilized, depending in your controlling requirements. These include production orders, sales orders, course of orders or product cost collectors. Price Object Controlling additionally gives tools for calculating Work In Process, scrap costs, and variances at interval finish close.Actual Costing is used to calculate actual product costs at period finish close. The end result may be transferred to the fabric master as a weighted common value for the closed period. The values connected with material movements are collected within the Materials Ledger. Both single-level settlement and multi-degree settlement functions can be found to calculate the actual materials prices at interval end close.

Product Cost Planning

There are numerous generally requested questions that Product Cost Planning may help answer. These would possibly embrace:
  1. How excessive are the value of goods manufactured and the value of goods sold?
  2. Is it currently attainable to supply at this market price in any respect? What is our value floor?
  3. Is it cheaper to produce giant or small tons?
  4. What does my cost structure seem like? How a lot of the full price is materials and how a lot is labor?
  5. What are the consequences of improvements within the manufacturing process?
  6. Which organizational unit most influences the product prices?
  7. Which plant has the lowest production costs?
  8. What is the influence of machine depreciation and energy costs on my product (primary costs)?
  9. A normal cost estimate can be used to valuate the fabric stock.

A Invoice Of Materials (BOM) is an entire, formally structured listing of the elements that make up a product or assembly. The record accommodates the material number of every element, together with the amount and unit of measure. The elements are often recognized as BOM items. A BOM can include materials which have their very own BOMs.The work center is the physical location at which an operation is carried out. When the master file for a piece middle is created in PP, it is linked to a cost heart, and also the varied exercise varieties produced by the cost center. This hyperlink allows access to the exercise type unit prices, that are used in valuing labor (or machine time) equipped by the associated fee facilities in a manufacturing process.The Routing lists the specific steps required to fabricate a product. These “steps” are referred to as operations. The routing specifies the next for each operation:
  1. the work center which carries out the operation
  2. the default values used for calculating dates, capacities and production costs
  3. whether or not the costs of an operation are taken into account for costing
  4. the fabric elements needed to carry out an operation
Cost Object Controlling

Value Object Controlling consists of three principal steps: preliminary costing of the fee object, simultaneous costing, and interval-finish closing.Preliminary costing refers again to the calculation of deliberate prices for a cost object, corresponding to a production order. Planning variances will be decided by comparing the outcomes of preliminary order costing with the standard price estimate for the quantity of fabric to be produced with the order.In Cost Object Controlling, as portions of uncooked materials are issued to be used in a production scenario, either from inventory or from external buy, their value is accumulated on the appropriate price object (corresponding to a production order). Equally, as an exercise type is performed in the manufacturing state of affairs (corresponding to hours of direct labor), the price of that exercise is also accrued on the price object. This process is termed simultaneous costing. It refers to the posting of value to a price object by the identical transaction that paperwork the material problem or activity completion. (The transaction that's used to document the completion of items of an exercise is called a confirmation.) The simultaneous costing idea may generally be known as valuation of amount flows to a cost object.Interval-end closing refers to a series of duties carried out on the end of every accounting period. This includes calculating relevant overhead costs, calculation of labor in course of (WIP), calculation of variances, and settlement (which passes information to Monetary Accounting, Revenue Middle Accounting, and Profitability Analysis).Varied normal reports are offered to research the costs posted to price objects.

Product Cost Control by Order

Order-associated production is lot-based production to stock. Value Object Controlling in order-associated manufacturing gives information about a production order whose prices are settled to stock. Price Object Controlling in order-related manufacturing can be used with or without the Manufacturing Planning module.For each production order, you probably can
  1. Calculate deliberate and actual prices
  2. Go on precise costs to other objects in the R/three System
  3. Analyze deliberate and precise costs
The functions for order-related manufacturing assist you to do the following:
  1. Find out which costs were incurred for manufacturing orders that haven't yet been settled, and cross on the work in course of for every order to Monetary Accounting and Revenue Center Accounting on the end of every period.
  2. Discover out which production variances occurred for each order and pass these values on to FI, Profitability Evaluation, and Revenue Center Accounting as costs for the period.
  3. Find out which prices have been incurred for scrap and go these values on to FI, Profitability Analysis, and Revenue Center Accounting as prices for the period.
  4. Complete the prices for all production orders with particular selection standards and display the results in a summarized form.
Product Cost Control by Period

Repetitive manufacturing refers to manufacturing planning and management utilizing run schedule headers that deliver the semifinished and finished products to stock.The planned necessities for repetitive manufacturing are usually generated automatically by material requirements planning (MRP), though they can be created manually. Production planning and management makes use of the planned orders for capacity planning and scheduling.In contrast to order-associated manufacturing, the deliberate orders are usually not converted into run schedule headers utilizing the lot size. As a substitute, the planned requirements are defined on run schedule headers.Run schedule headers are not based on lots, however exist over a time frame defined by the user.Below some circumstances this era might be the complete life cycle of the product.

Product Cost Control by Sales Order

The Product Value by Gross sales Order part is recommended for make-to-order environments. You ought to utilize the Product Cost by Gross sales Order component within the following situations:
  1. When you're manufacturing in-home just about a sales order.
  2. If you find yourself purchasing merchandise just about a sales order and reselling them to your customers.
  3. If you finish up providing services whose prices are assigned to a gross sales order.
This element means that you simply can do the next:
  1. Calculate and analyze deliberate costs and precise costs by sales order merchandise
  2. Calculate and analyze planned revenues and actual revenues by sales order item
  3. Calculate the value of your inventories of finished and unfinished products
  4. Create reserves mechanically
  5. Switch information to Monetary Accounting (FI)
  6. Switch data to Profitability Analysis (CO-PA)
  7. Switch data to Revenue Heart Accounting (EC-PCA)
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SAP Financial Payment Cards

SAP Financial Payment Cards represent a significant proportion of on an everyday basis enterprise transactions.A number of enterprise companions are involved in cost card processing.The cardboard holder uses the cardboard to buy items and services.The service provider delivers items and/or companies to the customer and accepts the fee card as a means of payment.The clearing home issues authorization for the cardboard and carries out settlement.The house financial institution of the service provider participates within the settlement and fee processes representing the merchant.The issuing bank is liable for issuing the card to the cardboard holder and also participates in the settlement and payment processes.SAP at the moment helps payment card business transactions between the merchant and the clearing
home (in different phrases, printing or card administration for buyer cards just isn't supported).

Fee card processing helps the following features:
  1. A fee card plan is assigned to the gross sales order at header level. This plan comprises information reminiscent of the cardboard quantity, the cardboard sort and the authorization data.
  2. When the supply is created, a validity verify is carried out for the authorization. If the authorization is no longer valid, or if an increase in quantity requires an increase in worth, then the person is required to hold out authorization once more within the sales order.
  3. The cost card data is copied to the billing document from the order.
  4. The cost card information and authorization knowledge are forwarded when the billing document is transferred to Financial Accounting. In Customizing, you'll find a way to configure the system in order that extra knowledge needed for settlement is transferred from SD to FI when procurement cards are involved.
  5. Transactions with payment cards can be posted to deviating accounts (see the sphere Account determination for cost playing cards when controlling the billing varieties).
  6. The ultimate settlement course of is carried out via the clearing house on the premise of this information.
This type of processing takes place in Retail. The Level-of-Sale (POS) is the purpose at which the items are paid for (normally the money register).No sales or delivery documents are created.
n When using Level-of-Sale methods, authorization is carried out in an external system.The relevant data is imported to the R/3 System. The billing document is created in the R/3 System.

Payment card data might be stored within the payer master document through the Cost transactions display screen (Cost playing cards button).Here, you specify the payment card sort (for instance, VISA), the cost card quantity, and the validity periods for this card.A card will also be entered as a default card. It will then seem in the F4 Help for order processing.If a card is blocked, the blocking cause can be entered for the corresponding payment card (purely for info purposes, has no impact on the block in the order).While you enter payment cards within the customer grasp, the following checks are carried out:
  1. The system checks the validity of the cardboard quantity, offered the corresponding verify routines are maintained in Customizing for that card type.
  2. The system additionally checks whether this card has already been entered in a distinct customer grasp record. An equivalent card can't be entered for a couple of customer.
A payment card kind have to be assigned to all gross sales document varieties for which fee card processing is permitted (for instance, if no payment card plan kind is assigned to money sales, then no entry fields for cost playing cards will seem right here).Fee card information can solely be entered at header level.The data needed for fee card processing is saved at completely different levels in the sales order:
  1. The order header comprises information for the payer.
  2. The order items comprise pricing information.
  3. The schedule strains include supply dates and quantities.
  4. The payment card plan accommodates cost card data and authorization data.
  5. The authorization process is triggered mechanically when the order is saved or it could be carried out as a background job.
  6. After authorization, the authorization quantity is saved within the order. This quantity will also be entered manually if, for instance, there are technical problems with the info transfer.
  7. Every of the person authorizations has a detail display, in which you can view further information.
Clearing houses issue authorizations for orders and are also accountable for settlement.A transparent interface to exterior systems allows the service provider to switch and receive data.In the standard R/3 System, perform CCARD_AUTH_SIMULATION is supplied as a template for creating consumer-specific authorization functions.The standard system additionally comprises operate CCARD_SETTLEMENT_SIMULATION, for creation of person-particular settlement functions.

Authorization is often carried out in the order at header level. In other phrases, new authorizations should all the time be created by means of the order.Utilizing checking teams, you possibly can set necessities in Customizing, that management beneath what circumstances authorization is to be determined. You can then set the system so that authorizations are carried out just for full orders.Relying on the checking group, you can too specify the authorization horizon (in other phrases, when authorization is to be determined).In case you use authorization requirement 1 provided in the usual system, authorization is triggered if you save the order. Authorization requirement 2 is provided for background processing.The checking teams have to be assigned to the gross sales document types.In the instance above, an order has been entered right now and is to be paid for utilizing a VISA card.Authorization is to be carried out in the future earlier than supply creation and will in all probability be valid for 14 days.

The next materials availability date in accordance with the schedule line is in three days. This means that the authorization process should be carried out in two days time, in accordance with the authorization horizon specified.The authorizations within the order are used in billing. A status in the order displays which authorizations have already been used.You must use the checking teams in Customizing to regulate whether or not preliminary authorizations (worth 0, if the current date is exterior the authorization horizon) are to be carried out with a purpose to verify the correctness of the card data.

When accounting paperwork are being created from transferred billing documents that embody fee card knowledge, the next postings are made:
  1. Debit and credit score postings to the customer account
  2. Posting of the sales revenue
  3. Posting of receivables to the interim account of the clearing home
This posting course of will be defined in that the authorization guarantees the receivable and the clearing home represents the related companion for payment.An interim account needs to be created for every clearing home so that the condition approach could be used to carry out posting to the related account (all receivables paid with VISA and MC posted to the interim account of the GZS; all receivables paid with AMEX posted to the interim account for the AMEX clearing house, and so forth).

At common intervals, the individual postings can be cumulated within the interim account for the clearing home and posted as a full value to the corresponding interim bank account.Settlement with the clearing home is triggered via this interim financial institution account.This account now accommodates the receivables from the clearing house for which fee is now expected. The receivables were transmitted through a settlement run.The background processing quantity can be used for project functions throughout incoming payments.The interim bank account is cleared upon fee of the receivables by the clearing house.

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SAP Financial Interest Calculation

SAP Financial Interest Calculation in R/3 supplies two kinds of interest calculation.Balance interest calculation is applied to the entire balance of a G/L or customer account, making use of a specific interest rate for a specified interval of time.Interest on arrears is applied to individual items in accounts receivable or accounts payable. A sure rate of interest is applied to the items which would possibly be still open or unpaid at a specified date.

Configuring the interest applications entails working with 5 main areas:
  1. Interest calculation sorts set basic parameters used in calculation. To calculate interest for an account (G/L, buyer, vendor), the grasp data for that account should embody the curiosity calculation indicator that applies.
  2. Normal terms specify further parameters about how each curiosity calculation indicator works.
  3. Time-based mostly terms set validity dates and relationships to curiosity rates.
  4. Rates of interest set up reference rates of interest (like LIBOR or Prime) that interest calculations will be tied to.
  5. Account dedication establishes which accounts the results of an interest calculation will likely be posted to (as needed).
Interest calculation indicators establish primary parameters for R/3 to make use of when calculating interest.Observe that every interest ID must be assigned an curiosity calculation type, indicating whether it is used for balance curiosity calculation or merchandise interest calculation.Each account for which R/3 will calculate interest will have to have an curiosity indicator in its master record.R/3 requires a separate curiosity calculation indicator for every combination of interest variables, such as calculation frequency, calendar sort, forex, interest rate, etc.

Common phrases set financial parameters for each interest calculation indicator.For example, every indicator makes use of a particular calendar type that governs the interest foundation and interval used for interest calculation.Different general terms management maximum / minimum limits on curiosity postings, blocks on outgoing funds, setting fee phrases, and varieties control. Time-dependent interest phrases differ from general phrases in having validity dates.They set, for example, the reference rate of interest that a calculation is tied to, and the premium (or spread) above that reference fee that applies. If the three-month LIBOR rate (London Interbank offered charge) is entered because the reference interest rate and a premium of 3.00% is entered, then with a LIBOR rate of 3.75%, the curiosity calculation rate will possible be 6.75%. When no reference interest rate is entered (as above), the premium rate alone (three%) is used in the calculation.The "amount from" subject specifies that the rate(s) apply solely to balances above a sure dollar amount. Along side the sequence numbers, an R/three user can use this function to construct "tiered' rates of interest, the place interest on balances as a lot as a given quantity calculate at one rate, and balances above that quantity calculate at a distinct one.

R/3 allows the user to arrange reference interest rates. In addition to an interest rate ID, the consumer can supply lengthy and quick text descriptions, an effective date, a currency and a financial center.Account willpower in R/three begins with predefined enterprise transactions which are accessed when the user runs the interest calculation programs.

Transaction 1030 in the instance above if the person needs to calculate the interest for a certain interval and needs to debit the account for which interest is calculated.When the business transaction is mixed with optionally available modifiers like the corporate code and curiosity indicator, R/three determines posting keys and account symbols.Account symbols, when mixed with modifiers like the chart of accounts and foreign money, point to G/L (or vendor or customer) accounts the place the curiosity transactions are posted. The use of account symbols allows corporations with totally different charts of accounts and currencies to use the identical enterprise transactions.

Restrict the variety of accounts included in the curiosity calculation by coming into intervals or individual values for the chart, account quantity, firm code, curiosity indicator and business area. Typically, solely accounts with an curiosity indicator within the master file and that are managed with line item show are included.You could also enter the curiosity calculation interval, date of final interest run, and other options.The output of the program displays an curiosity scale for every month. Select summarization ranges to determine how detailed the curiosity scale will be.To monitor the curiosity calculation run (or maybe explore why it didn't run as anticipated), you can have the system log the run. Limit the log to some G/L accounts - the printout might be lengthy.Run this system as a background job. Set the "Put up interest" indicator in order that posting is completed automatically.

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SAP Financial Lock Box

SAP Financial Lock Box is a service that banks provide to facilitate the orderly assortment and processing of incoming payments. Instead of sending their payments to your office, prospects mail their payments and remittance advices on to a central financial institution location, normally a submit workplace box.Banks obtain the payments, create a data file of the shopper remittance information and payment amounts, and deposit the checks into your financial institution account. Frequently, you obtain this knowledge file for processing to replace your books.Depending on the choice of service together with your financial institution, the lock box file will comprise the following data: buyer name and (SAP) customer quantity, buyer MICR number (bank routing number and account quantity), check quantity, bill number, payment date, payment quantities/deductions per invoice and causes for underpayment. n Some advantages to utilizing a lock box embody lowering in-house-processing time, growing cash move and decreasing processing costs.

Clients ship their checks and remittance advices to your lock box.The bank processes the checks, credits your checking account, and sends you a detailed file of the data along with a day by day total.The lock box records data are transmitted utilizing numerous methods such as tapes, diskettes, and direct dial-in and download.The lock box import program posts a basic ledger entry to replace the corporates money position and creates a payment recommendation file from the financial institution input. The cost advice is compared to the client's open gadgets in accounts receivable and clears any matching items. Any checks that might not be fully processed by the lock box import process are then manually processed in the post processing transaction.

Customers ship their funds to a lock box. The financial institution collects the data and sends an ANSI 823 message to the R/three person's EDI server. The server translates the message utilizing as commonplace EDI interface into an IDOC (middleman doc) and sends it to the SAP server.Once the message is received by the SAP server, the information is saved in the FINSTA01 Lock box table.At the identical time a program is kicked off which generates the next:
  • Examine information is stored in financial institution statement tables
  • Payment advices are created which detail the disposition of the checks i.e. payment amount, invoice numbers, customer numbers, etc.
Then the lock box program is processed and the cost advices are cleared towards buyer open items. Any checks that could not be totally processed by the lock box process will be manually processed using the publish processing transaction.

The financial institution's data file usually follows a typical banking industry format referred to as BAI or BAI2. The BAI format provides basic information akin to examine quantity, examine quantity, financial institution number and bill numbers. This format does not break down the check quantity into particular person amounts per invoice. n The BAI2 format provides larger detail, such as the cost per invoice, deduction quantity per invoice and a motive code for the deduction often leading to a higher variety of cleared invoices.Due to the extra data offered, banks normally charge increased charges for producing this format.The BAI and BAI2 codecs might fluctuate barely by bank.MICR numbers are a standard numbering format used by banks and are located on the backside of every check. The MICR quantity has two components, the financial institution routing quantity (or transit quantity), a unique quantity identifying the financial institution, and the shopper's checking account number. Handbook or automated maintenance of buyer MICR info considerably enhances the hit fee for future money applications. This information is captured on the shoppers grasp file underneath financial institution details.ANSI x.12 codecs are mapped from the EDI subsystem into the SAP IDOC interface.

The lock box import program is most frequently configured to publish an entry to cash and to an unapplied money receipts account. When fee advice info is cleared in opposition to buyer open items, the open merchandise and the posting to the unapplied money receipt account are cleared. Any unapplied checks will stay in the unapplied money receipt account and can have to be manually processed in the publish processing transaction.A cost recommendation accommodates detailed information about an incoming payment. The quantity of element on an recommendation is decided by the information offered by the bank. Extra detailed financial institution info leads to a better rate of automatic clearing.A payment advice could embrace the following information: customer MICR quantity (bank routing number and account quantity), verify quantity, bill number(s), cost date, payment quantities/deductions per bill and reasons for underpayment.The Lock box Import program uses detailed information from the fee advice to mechanically search and match customer open merchandise(s). The document number on the payment advice is matched towards the document number in the customer open merchandise file. Therefore, accurate cost advice knowledge is critical for automated clearing to take place.

If the verify was applied or partially applied, the advice is deleted from the system after processing.If the verify was unprocessed or placed on account of customer, the recommendation is saved on file for additional processing.

The post course of function entails reviewing the status of the checks applied via the lock box function. You could manually clear any checks that were on-account of buyer or not applied to buyer accounts. Checks have 4 statuses: utilized, partially utilized, on-account or unprocessed. The lock box overview display screen details the number of checks in each category. Depending on the standing of the verify, the consumer determines what must occur to apply the check. For example, if the financial institution keyed within the incorrect bill quantity, the Lock box Import program posts the cost on account. In the post processing step, you entry the payment recommendation and correct the document quantity and upon saving the adjustments, the publish course of operate clears the open items, deletes the cost advice, and units the verify status to applied.Checks which can be partially utilized might require additional processing. For example, a examine could have paid five invoices, however one was incorrectly keyed. The primary four invoices would clear. The cost amount for the fifth invoice would be placed on-account and would have to be submit processed to clear.

Any payment that would not be identified either by the shopper's MICR number or the document number would stay unprocessed. Once the cost is researched and the shopper and bill is identified, it could be applied throughout post processing.The post course of operate entails reviewing the status of the checks utilized via the lock box function. You want to manually clear any checks that were on-account of buyer or not utilized to buyer accounts. Checks have 4 statuses: applied, partially applied, on-account or unprocessed.The lock box overview display screen details the number of checks in each category. Relying on the standing of the examine, the user determines what must occur to apply the check.For example, if the bank keyed in the incorrect bill quantity, the Lock box Import program posts the cost on account. In the publish processing step, you entry the cost recommendation and proper the document quantity and upon saving the modifications, the publish process perform clears the open items,deletes the fee recommendation, and units the verify status to applied.Checks that are partially applied might require further processing. For example, a examine could have paid 5 invoices, but one was incorrectly keyed. The first four invoices would clear. The cost amount for the fifth bill could be placed on-account and must be put up processed to clear.

Any payment that would not be recognized either by the customer's MICR number or the document number would remain unprocessed. As quickly as the payment is researched and the client and invoice is identified, it might be utilized throughout publish processing.In the posting knowledge screen, you configure info on who owns the lock box and the sorts of postings generated.You specify the lock box bank knowledge; the company code that owns the lock box, the financial institution and account the information is coming from, and the general ledger accounts that will be used to e-book the postings.You specify additional posting parameters: the document varieties that will be used to create the posting paperwork and the posting keys.

The Lock box Import display screen is where you tell R/3 the place the data is coming from and how you need it processed. You specify the data file title, the file format and the way the cost quantities can be cleared against the open items.

  1. Invoice numbers: Bill numbers may be outlined because the document number or the reference number.Depending on the manner you outline “bill quantity” on your firm, you possibly can choose how the system will match open gadgets; by doc quantity, by reference number, by reference quantity first than doc quantity second, or vice versa.
  2. Enhanced bill checking: This characteristic, when selected, verifies whether or not all of the bill numbers belong to the same buyer or teams of shoppers belonging together.
  3. Extra Account Project: If crucial, you can add a price date, enterprise area and/or revenue center if you would like to assign those values for all line items for bank accounts and sub-accounts, for each check in the lock box file .
  4. When working the lock box program, buyer tolerances established in FI are checked to decide if “Difference is simply too massive for clearing”. Due to this fact, these tolerances have a think about determining if the system clears the open item or locations it “On Account” .
For BAI2 and EDI formats, if the cost has a reason code that displays a cost-off to an account, the merchandise is cleared and the difference related to that motive code is posted to a charge off account.

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SAP Financial Dunning

SAP Financial Dunning has entering parameters in the dunning program offers information on the approach it has to run. The parameters of an previous dunning run may be referenced and the dates adjusted.The dunning run selects the accounts, examines them for overdue objects, checks in the occasion that they must be dunned, and assigns dunning ranges to them. All dunning information is stored in a dunning proposal.The dunning proposal may be edited, deleted and recreated as typically as essential until the dunning clerk is satisfied with the result.If desired, this step will be skipped and the dunning run may be followed straight by the printout of dunning notices.In a single step, dunning notices are printed and dunning data is up to date in the grasp information and related documents.

The dunning procedure controls how dunning is carried out. Each account which is meant to participate within the computerized dunning course of needs to have a dunning procedure.One-time-accounts even have a dunning process which is valid for all one-time customers.Many alternative dunning procedures could be outlined as necessary. The R/3-normal already contains some predefined dunning procedures which can serve as templates for other procedures.The dunning procedure can process commonplace and/or particular G/L transactions.

The principle dunning cost program configuration menu has push buttons for different areas. To be certain that the configuration is complete, we'll begin to work on dunning procedure overview.
Afterwards, we'll work from left to proper by means of every push button.The completely different areas will require minimal configuration changes if we copy an present dunning procedure and adapt only firm code particular configuration. The usual system accommodates some frequent dunning procedures and their corresponding forms.

You want to resolve at which intervals the accounts are to be dunned on your dunning procedure.During the dunning run, the System checks whether the run date is that this number of days since the date of the final dunning run. If this is not the case a new dunning notice can´t be created even when new objects have turn out to be overdue on this account or items would have changed their dunning level.The number of dunning levels represents the highest dunning level which is feasible in this procedure.The minimum days in arrears (account) are the times which at the very least one merchandise in this account should have - in some other case the account received´t be dunned, a dunning discover received´t be created.An item whose days in arrears are smaller or equivalent to the grace durations, is taken as not due for that dunning notice.If you want dunning curiosity to be calculated you have to enter an curiosity calculation indicator.

The number of days in arrears is defaulted by the System: it suggests the line merchandise grace period for the first dunning degree then the dunning interval in days are added to the times in arrears of the previous dunning level.You may specify per dunning level that curiosity is to be calculated.If you happen to set the indicator “always dun”, a dunning notice will nonetheless be printed even if no change (no item has reached another dunning level and no new item was included) has been made to the dunning proposal because the last dunning run.The items might be printed to give the client/vendor an summary of the whole account balance.You can enter numerous days if a cost deadline for payment of the overdue objects is to be entered in the dunning notice. The quantity is added to the date of problem of the dunning run and therefore gives the fee deadline.It´s doable to print a dunning notice in a authorized dunning process, though no additional account movements have occurred.

The dunning charge in dunning foreign money depends upon the dunning level. It can be printed on the dunning kinds by the means of word processing.The dunning cost may be both a hard and fast amount or a proportion of the dunned amount. When you have outlined a dunning charge in %, this precludes you from coming into a fixed dunning charge on the same time.On each dunning level you'll give you the chance to set a minimal quantity for the dunning charges.If the minimum quantity for overdue objects will not be reached in a dunning level, then the gadgets in this dunning degree are assigned to the subsequent lowest and the system checks whether or not a dunning discover can then be created on this dunning level.

If you have specified a minimum share charge, the amount threshold should also have been equaled or exceed.The structure of the shape is defined within the SAPscript phrase processing tool utilizing the key specified here.The dunning program can generate cost advices, dunning notices and cost forms.On screen “Company Code Dunning Control”, you probably can determine if dunning notices are to be created separately by dunning area slightly than per account for a corporation code. In the event you select the option, the dunning knowledge on the business companion grasp document could be updated in response to dunning areas. A dunning space represents an organizational entity, a sub construction of company codes, which might be responsible for dunning.In contrast to straightforward dunning wherein all objects in any respect dunning ranges are dunned with one dunning discover, you may choose if you want a separate dunning notice created inside an account for each dunning stage determined with a unique accompanying text.

If you'd like your dunning notices and items sorted in maintaining with type criteria you may maintain sort variants.Normal texts should be assigned to an organization code and (non-compulsory) a dunning area. A standard text incorporates the text for the letter header which includes, for instance, an organization emblem and a phone number.A dunning key determines that the road item can solely be dunned with restrictions or is to be displayed separately on the dunning notice.A dunning block prevents accounts and items to be dunned.Keep the rate of interest which is for use for the interest calculation of debit balances.

With the parameters, you tell the dunning program which paperwork and accounts in which company codes it should look at for overdue items.It's additionally attainable to activate a further log which - after the dunning run - provides you information about the profitable or unsuccessful completion of the dunning run processing steps. Use this log for testing and coaching functions solely sinceit requires a lot of system resources.

The dunning run creates a dunning proposal which could be edited, deleted, and recreated as usually as necessary.If desired, the dunning run can immediately and robotic ally be followed by the printing of dunning notices. The enhancing of the dunning proposal would due to this fact be skipped.The dunning run can be divided into the three steps above for more clarity.

  1. First step: Account Selection. On this step this system checks which accounts shall be thought-about in the dunning run in maintaining with the parameters and configuration.
  2. Second step: Dunning Line Objects . On this step the system checks objects on the selected accounts to see if they're overdue and on which dunning degree they need to be dunned.
  3. Third step: Dunning Accounts . In this step the system checks if it is essential to dun the account and if that's the case, on which dunning level.

The first step of the dunning run is account selection.This system checks all accounts which have been entered within the parameters as criteria. If they fulfill the criteria they're thought of in the dunning run, if not, they're skipped.The criteria are:
  1. A dunning procedure must be entered in master data.
  2. The date of the final dunning run which is entered within the account needs to be earlier than the dunning interval date of the dunning procedure.
Receivables are due on the due internet date.Normally the fee terms of a credit score memo don’t apply. Instead there are the next rules:
  1. If a credit score memo is invoice-associated, it has the identical due date as the invoice.All different credit memos are due at the base line date.
  2. If the payment terms on a credit memo should apply, a “V” must be entered into the field “bill reference”.
The difference between the due date and the dunning date is the following:
  • Due date: day after which the liabilities ought to have been paid.
  • Dunning date: day when the overdue objects are dunned.
Each dunned item have to be overdue, however not all overdue objects are dunned.Normally all gadgets that are overdue at the date of problem must be dunned.If line merchandise grace durations are entered into the dunning process, only the items that are overdue for a longer time than the grace periods allow are dunned.Each dunning procedure has up to 9 dunning levels.The dunning discover wording is usually influenced by the dunning level. The higher the dunning stage often the more insistent is the dunning text.Each item to be dunned will get a dunning degree in conserving with its days in arrears. For bill-related credit memos, the dunning level is taken from the invoice. From one dunning run to a different the dunning stage can only be raised by one, i.e. no dunning level may be skipped.

When setting up a dunning procedure, the system defaults the variety of days in arrears on the dunning levels screen. For the primary dunning stage, the system suggests the line item grace period; for all additional dunning ranges, the system adds the dunning interval in days to the times in arrears of the earlier dunning level. Notice: These default values may be overwritten but this isn't recommended.Dunning procedures which have only one dunning level are referred to within the system as a fee reminder. Single-level dunning procedures are used for crucial prospects and public companies, thereby guaranteeing that they are sent only a payment reminder.

After dunning information is determined the system checks if it is really necessary to dun. It is normally not necessary to ship a dunning discover if there were no adjustments within the dunning information since the final dunning run. Subsequently, an account is only dunned:
  1. if there are any modifications in the dunning data because the last dunning run, or
  2. if the field all the time dunn. discover is marked for the dunning level. This selection is often marked for the final dunning level as a reminder or if it's a single -level dunning procedure (cost reminder).
A particular rule applies for accounts which are in a authorized dunning process . If the date of the starting of the legal dunning process is entered in the account grasp data, the account is at all times dunned:
  1. if there were any postings because the last dunning run, or
  2. if the box at all times dun in legal proc . is marked.
The system doesn't ship any dunning notices to a customer with authorized dunning process even if there are any adjustments within the dunning data. It just would not make any sense to send a dunning letter to a customer who has clearly not reacted on any earlier dunning notices. If a sued account is dunned based on one of the criteria above, an internal be aware on a particular form is printed and send to the authorized department. To keep away from having any open objects which were posted previous to the beginning of the legal dunning process being forgotten, the checkmark at all times dun in authorized proc. must be set.

It's doable to group items by further criteria. These are:
  1. Dunning per dunning level:In the firm code particular specifications of the dunning program it can be chosen if a separate dunning notice per dunning level shall be printed. If so the dunning textual content is just not selected in protecting with the account’s dunning level but by the dunning ranges of the grouped items.
  2. Grouping key: A grouping key can be entered into the customer/vendor account so that the gadgets are grouped to dunning notices as lengthy as they have the identical content in the fields assigned to the grouping key. The fields of the index tables for open gadgets BSID (clients) and BSIK (distributors) could be used.
  3. Local processing: In a head workplace/department relationship items are posted on the pinnacle office account; therefore, the head office often receives a dunning discover with all overdue objects of its branches. If native processing is marked within the branch accounts, then dunning is processed domestically, i.e. the notices are sent to the branches.
You ought to utilize cross-company code dunning to mix overdue gadgets from different company codes in one dunning run. The overdue gadgets from one customer that exists in different company codes are dunned with one dunning notice. The items are grouped in accordance with pre-outlined rules, e.g. by dunning levels, dunning areas, dunning grouping, and assigned to one or more dunning notices. This chance eliminates the necessity to ship one buyer a separate dunning discover for each firm code.In order to dun different company codes at once, you have to assign the related firm codes to a joint dunning firm code. The dunning process assigned to the account in the dunning firm code is used. The dunning frequency and dunning blocks are checked individually, not simply in the dunning company code.If a date has been specified for an account in the dunning company code which marks it for inclusion in the legal dunning process, this affects also the dependent firm codes.

The layout and the content of the dunning discover is outlined in a SAPscript form. The R/3 standard dunning kinds are named F150_DUNN_01 (with out interest), F150_DUNN_02 (with curiosity), and F150_DUNN_04 (cost reminder).A separate dunning kind may be assigned for each combination of dunning procedure, firm code, account kind, dunning stage, and dunnin g space but additionally it is possible to at all times use the same.Every dunning type has a quantity of text components which contain dunning texts for different dunning levels. For the dunning degree n the textual content component 51n is used. Do not change the numbers of the text elements.Varieties are printed within the language entered in the buyer/vendor master data. As an alternative of specifying the dunning kind you can simply seek advice from the dunning types of another company code and/or another dunning procedure. Forms can solely be maintained by the reference company code within the reference dunning procedure . The reference dunning process and the referring dunning procedure have to have the identical variety of dunning levels.The dunning discover of the final dunning level is just not sent to the shopper/vendor however rather to the authorized department for manual dunning process. The guide dunning process often ends in a legal dunning procedure.

The internal observe within the legal dunning proceedings in the R/3 commonplace is kind F150_DUNN_03 and text factor 520. This type has to be entered in the area legal dunning proceedings.Dunning notices might be printed with an hooked up fee form for bank transfer (Germany) or ESR-Funds (Switzerland). The customer could use this cost type to pay the dunned amount.The cost form can be connected to the principle discover (see above) or may be printed on a separate page. Due to this fact, both the dunning notice type has to be changed so that it incorporates a window for the payment kind or a separate kind for the extra web page needs to be created.The dunning discover should solely comprise gadgets with the corporate code currency.The dunning program can create a fee recommendation which accommodates the gadgets on the dunning notice.When the client pays the dunned quantity, this recommendation can be utilized to assign the incoming cost to the items.The fee recommendation number has 10 digits and begins with 08. The cost recommendation sort 08 must be defined in configuration.The payment recommendation number will be printed on the dunning notice and on the fee type (e.g. in the reference field).

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SAP Financial Cost Management

SAP Financial Cost Management is widely used by most businesses have too many bank accounts, held at too many various banks. This makes it tough to keep an outline of the related account balances.As banks send statements each day, exact, worth-date accounting doesn't happen often. Businesses miss out on the complete advantages of funding devices as a end result of worth date info is lacking.Payments are sometimes made from one account solely, no matter whether it incorporates enough funds.The duties of a cash administration system are to:
  • Analyze monetary transactions in completed accounting periods
  • Determine and reproduce future movements in financial budgeting as exactly as potential
SAP R/3 Money Management gives the next tools, designed to make cash flows clear:
  1. The money position, which illustrates short term actions within the financial institution accounts
  2. The liquidity forecast, which illustrates medium-term movements in sub-ledger accounts too
The money place reveals how your financial institution accounts will transfer in the next few days. In the meantime, the liquidity forecast illustrates liquidity modifications within the subledger accounts. Features are additionally supported which you should use to acquire related data on forecast payment flows. This information appears in the type of memo records within the cash place, or as planned gadgets within the liquidity forecast.Financial budgeting and the long-time period view of money movement (goal/precise comparison) at G/L account stage are usually not supported by SAP R/3 Money Management, but are included as a substitute in SAP R/3 Cash Budget Management.

SAP Cash Management has the identical objectives as typical money administration methods, particularly to:
  • Safeguard firm liquidity so that fee obligations may be met
  • Monitor payment flows
SAP Money Administration uses the cash position to mirror movements in financial institution accounts, while movements within the subledger accounts are represented using the liquidity forecast.The liquidity forecast relies on payments out and in from/to clients and vendors, per the open items. As planning for incoming and outgoing payments covers a bigger timeframe, the likelihood of the payments occurring on the day given is less than in the money position.

The format of the money position and the liquidity forecast is set by two options:
  1. Each reviews contain levels. These provide high-quality data on the industrial causes for a movement in an account - that's, they clarify how the account opening and closing balances came about. For example, ranges give info on whether or not a steadiness in a bank account is the end result of a financial institution posting or of a memo report entered manually.They can additionally be categorized in response to how secure the receipt is - for instance, by confirmed or unconfirmed memo record.
  2. Within the cash position, accounts (bank and bank clearing accounts) provide information on the present balance.
  3. The liquidity forecast comprises groups as an alternative of accounts. Vendors and customers are assigned to a planning group by way of an entry in the grasp records. Each group displays certain options, procedures, or risks.
Cash Position

First, you want to create an instrument which provides you with helpful information about your bank accounts.You employ the money position for this,considering first its particular attributes and aspects of integration.To have the opportunity to use the cash position successfully,you must first arrange your FI bank accounts in a particular construction, and configure them accordingly.After the bank statements are posted in FI, the account transactions will be displayed in the money position.The balances within the financial institution accounts, which you'll show using the money place, type the idea for planning decisions.Treasury transactions may additionally be displayed in the cash place, below certain conditions.

Bank accounting is to provide a financial institution (present) account for every foreign money and, in each case, a clearing account, on a lower level and per processing type.You may tailor the clearing accounts to the needs of your business.Goals:
  1. Accounts could be reconciled at any time
  2. Foreign forex and local foreign money are managed in parallel
  3. Might be managed by worth date
  4. Interest can be calculated
  5. Line item analysis attainable
  6. Contingent liabilities can be monitored
  7. Items posted automatically utilizing computerized payment transactions
  8. Automated breakdown utilizing digital banking transactions
Solely transactions which are, according to the financial institution statement, energetic are posted within the financial institution (current) accounts.Bank accounts should be configured so that the financial institution postings are included in planning.If you need to derive the stability in the money place, which is always managed by value date, you ought to managed the financial institution (current) accounts by value date also. It isn't necessary to manage open items. Knowledge is recorded in G/L account currency. All bank (current) accounts must be assigned to a unique planning stage, the place bank statements and, with them, the actual bank balance are represented. n On the opposite hand, you should manage financial institution clearing accounts on an open item basis. They can, for instance, be sorted by local currency amount. Relying on the sort of financial institution clearing account, a particular planning stage is then assigned - for example, for:
  1. 113102 Financial institution 1 (outgoing bank switch, home): B2 degree
  2. 113109 Bank 1 (buyer cash receipts): a B9 level

You now want to reproduce a home bank - that's,a financial institution the place you hold buyer/vendor accounts and from which you want to name up financial institution assertion info - in your SAP Cash Management installation. You could already have created the bank once you applied SAP FI Monetary Accounting.You must additionally create the related G/L accounts in the system and configure them in line with outlined criteria.To reproduce these accounts within the cash position, give them an acceptable description and assign them to a grouping time period which is responsible for setting up the cash position.

Each G/L account is assigned to an account group. This determines the setup for the second master report screen. You format it using the sphere status. Every account group inside a chart of accounts can have a unique discipline status.

Field Status

The sector standing group is chargeable for the doc format if you're posting to a specific account. For that reason, you have to define the suitable area status group for the bank account.To manage financial institution postings by value date, you have to enter the worth date in all postings to the financial institution account. To this end, you can configure the related discipline status group in such a manner that the "Value date" field is a required entry.You possibly can have the system automatically suggest the present date as the worth date. This makes things easier in coaching courses and system demonstrations, however not in business use as a outcome of errors occur frequently.

Bank Accounts

The company code bank accounts are saved under an account ID for the house banks that you just define. You enter the external account number and its forex with the bank, along with the related G/L account quantity, thereby guaranteeing that postings go to the precise accounts. A G/L grasp document is created for every bank account.In the G/L account master file, you probably can enter the home bank key and the account ID, so as to have entry from the general ledger to the address knowledge retailer for the house bank. That is necessary for bank correspondence, for example throughout cash concentration: the system uses the financial institution ID and account ID to obtain the handle information from the bank directory.If you occur to preserve overseas trade accounts, the foreign money key in the G/L grasp report should be the similar as the currency in the foreign foreign money account.

Planning Levels

You outline a planning degree within the G/L account master file, in order that postings to this account may be seen in the cash position.Planning ranges present data on the sort of account transaction and the reason for the transaction. They are freely definable.The Supply indicator checks verifies that the info for the specified level is permitted in the money position. The BNK source symbol is so outline that every one planning levels assigned to it are displayed in the cash position and never the liquidity forecast.You'll give you the chance to define new planning ranges by selecting and copying the standard entries or by coming into a utterly new level.

Groupings are used to mix accounts and assign summarization terms to them. Their balances might be displayed per account or as an aggregate. You'll have the option to prohibit the show to particular firm codes and charts of accounts.Grouping phrases are freely definable. This means you may tailor the cash position display to your own individual requirements. The degrees selected appear in the display.The type shows whether levels (L) or groups (G) are displayed. In every grouping, you could configure at the very least one line of type L and one among sort G. The choice determines which ranges (2 digits) or groups (10 digits) are combined. You probably can configure maskings or partial maskings for particular person values. Teams must be ten characters lengthy and, if necessary, entered with leading zeros.The summarization term determines whether the individual worth or the cumulative value is displayed.If you create new grouping entries, it's important to outline headings for them.

Liquidity Forecast

The money position exhibits how your financial institution accounts will transfer within the subsequent few days. In the meantime, the liquidity forecast illustrates liquidity changes within the subledger accounts. Functions are additionally supported which you can use to obtain related info on forecast payment flows. This info seems as planned objects within the liquidity forecast. The data is based on funds in and out from/to prospects and vendors, per the open items.As planning for incoming and outgoing payments covers a larger timeframe, the probability of the funds occurring on the day given is lower than in the cash position.The next are examples of sources of planning data for the liquidity forecast:
  • Receivables and commitments as anticipated incoming funds
  • Planned wage and wage payments
As with the cash position, you simply groupings to set up the liquidity forecast structure. The grouping term is used to mix specific levels and planning groups for show purposes.

Percentage Distribution

When you choose the cumulative and distributed show in addition to the display distributed by inflows and outflows, the system will distribute memo records and abstract information for every level according to the specifications you can define.Gadgets are distributed earlier than or after the decided value date using the +/- indicators, days, and percentages that you simply specify.Planning teams differentiate prospects and distributors according to explicit characteristics (customer in France), conduct (takes cash low cost) or risks (credit rating). They're consumer-definable and are entered in the "Planning group" field within the buyer or vendor grasp record.If you select the "Display screen management" option (SCn), the "Planning date" and "Planning degree" fields are prepared for input when documents are entered or changed. You can overwrite the values the system routinely defaults for these fields.

The replace to Cash Management distinguishes between two circumstances:
  1. Different 1 (liquidity forecast):If no fee particulars have been maintained within the transactions - that's, the bank accounts usually are not identified -, the cash movement for a bank account or financial institution clearing account cannot be displayed. However, the amount should seem in Money Administration in some way, so the quantity is displayed re sub ledger accounts. The system then attracts on the planning group specified in the grasp report for the business partner.
  2. Alternative 2 (cash place):If payment details are specified within the transaction - that's, the financial institution accounts are recognized -, the cash flow appears in TR-CM on the level assigned to the related checking account/bank clearing account.
Creating Account Transaction

There are two locations the place you can define a model new money journal accounting transactions: within the money journal itself or within the implementation guide. Relying on the kind of transaction you may be posting,you can identify it accordingly, e.g. for cash sales postings, you'll be able to identify the accounting transaction “Cash Sale”.To create accounting transaction, choose the next:
  1. the corporate code in which the accounting transaction must be created
  2. the accounting transaction sort, (Word: you can not make an entry within the discipline G/L account for accounting transaction types D and K)
  3. select a tax code for E (Expense) and R (Revenue), transactions which determines the accounting transaction control.
As soon as saved, the accounting transaction will be assigned a number automatically. Throughout document entry, the accounting transaction may be called up by it’s name or it’s number.

Cash General Transaction

The money journal has the form of a new ENJOY transaction. The screen is divided into three sections:
  1. Knowledge choice: Right here, the time period of the info may be selected.
  2. Balance show: Displays the totals of incoming and outgoing cash and the start and ending balance.
  3. Accounting transactions Here, the cash journal transactions will be entered.
Accounting transactions are saved individually in the cash journal and are transferred periodically (for instance, daily) to the overall ledger. The transferred transactions will be printed as a journal. A receipt could be printed for each particular person transaction.The cash journal is amongst the new ENJOY-single display-transactions: you'll find a way to create, display and change cash documents on one screen.It can save you money journal entries domestically in the money journal subledger, you could also copy and delete them. The cash journal entries saved are posted to the overall ledger, e.g. at the end of the working day.It´s attainable to print the money journal entries you will have saved (receipts) in addition to the money journal entries posted within the time interval displayed. The print forms are chosen in Customizing.The follow-on paperwork arising from cash journal entries posted in the SAP-System are displayed.Copying and deleting cash journal entries saved and displaying the deleted money journal paperwork are additional features available.

The money journal is a Bank Accounting sub ledger for the management of cash in a business. It might well be used independently of different posting transactions.Cash journal entries are saved locally within the money journal sub ledger. All balances are mechanically calculated and displayed.The money journal entries saved are posted to the normal ledger. The comply with-on documents from money journal entries posted are displayed.

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