SAP ERP Financials: Configuration and Design

... Acknowledgments ... 19

1 ... Overview ... 21
... 1.1 ... Introduction ... 21
... 1.2 ... Brief History of SAP ... 23
... 1.3 ... Different Types of Projects ... 24
... 1.4 ... Points to Consider for a Successful SAP Implementation ... 27
... 1.5 ... SAP Navigation Basics ... 30
... 1.6 ... Summary ... 36

2 ... SAP Enterprise Structure ... 37
... 2.1 ... Building an Enterprise Structure ... 38
... 2.2 ... Building a Project's Straw Man ... 39
... 2.3 ... Designing the Straw Man ... 43
... 2.4 ... Configuring the Enterprise Structure ... 44
... 2.5 ... Summary ... 84

3 ... Global Settings for Financial Accounting in SAP ERP Financials ... 85
... 3.1 ... What Is a Document in SAP ERP? ... 86
... 3.2 ... Configuration of Global Settings ... 89
... 3.3 ... Sales and Purchase Tax ... 131
... 3.4 ... Summary ... 143

4 ... New General Ledger ... 145
... 4.1 ... Overview of the GL ... 146
... 4.2 ... Building Your New GL Blueprint ... 152
... 4.3 ... Configuration Steps to Activate the New GL ... 153
... 4.4 ... IFRS Compliance ... 192
... 4.5 ... Summary ... 195

5 ... Accounts Payable ... 197
... 5.1 ... Overview of the P2P cycle ... 198
... 5.2 ... Building an AP Business Model ... 201
... 5.3 ... Master Data ... 202
... 5.4 ... Vendor Account Groups ... 205
... 5.5 ... Vendor Number Ranges ... 213
... 5.6 ... Accounting Clerks ... 219
... 5.7 ... Define Sensitive Fields for Dual Control ... 220
... 5.8 ... House Banks ... 222
... 5.9 ... Invoice Processing ... 228
... 5.10 ... Document Parking ... 231
... 5.11 ... Configuring Special General Ledger Indicators for AR/AP Down Payment Postings ... 233
... 5.12 ... Posting and Clearing Down Payments ... 235
... 5.13 ... Outgoing Payments Processing ... 239
... 5.14 ... Cash Journal ... 257
... 5.15 ... Electronic Bank Statements ... 266
... 5.16 ... Summary ... 279

6 ... Accounts Receivable ... 281
... 6.1 ... Overview of the Order-to-Cash Process ... 281
... 6.2 ... Building an Accounts Receivable Business Model ... 284
... 6.3 ... Master Data ... 285
... 6.4 ... Customer Master Records ... 285
... 6.5 ... Finance Documents Global Settings ... 303
... 6.6 ... Customer Invoice Processing ... 304
... 6.7 ... Configuring Special General Ledger Indicators for AR/AP Down Payment Postings ... 305
... 6.8 ... Customer Payments ... 311
... 6.9 ... Debtor Management ... 319
... 6.10 ... Summary ... 347

7 ... Asset Accounting ... 349
... 7.1 ... Overview of Asset Accounting ... 350
... 7.2 ... Building Blocks of Asset Accounting ... 351
... 7.3 ... Building an Asset Accounting Business Model ... 355
... 7.4 ... Asset Accounting Configuration ... 357
... 7.5 ... Asset Transaction Processing ... 404
... 7.6 ... Current Asset Valuation ... 422
... 7.7 ... Summary ... 429

8 ... Controlling in SAP ERP Financials ... 431
... 8.1 ... Overview and Diagram ... 432
... 8.2 ... Subcomponents of the Controlling Component ... 433
... 8.3 ... Building a Controlling Model ... 434
... 8.4 ... Configuration Settings in Controlling ... 437
... 8.5 ... Concepts of Periodic Reposting, Distribution, and Assessment ... 469
... 8.6 ... Real-Time Integration of Controlling with Financial Accounting ... 476
... 8.7 ... Cost Center Planning ... 480
... 8.8 ... Summary ... 485

9 ... SAP ERP Financials Integration ... 487
... 9.1 ... Automatic Account Determination ... 490
... 9.2 ... Master Data ... 510
... 9.3 ... Integrating SAP Payroll with SAP ERP Financials ... 519
... 9.4 ... Interfaces ... 531
... 9.5 ... The Value of Integration Testing ... 536
... 9.6 ... Summary ... 537

10 ... Data Migration ... 539
... 10.1 ... Key Principles of Data Migration ... 540
... 10.2 ... The Six-Step Migration Model ... 541
... 10.3 ... Inventory Transfer ... 546
... 10.4 ... Open Items Transfer ... 547
... 10.5 ... Upgrade to SAP ERP 6.0 ... 547
... 10.6 ... Asset Accounting Legacy Data Transfer ... 549
... 10.7 ... Create Your Own LSMWs to Assist in Data Migration ... 555
... 10.8 ... Summary ... 572

11 ... Period-End Closing ... 573
... 11.1 ... Fast Close with the New GL ... 574
... 11.2 ... Key Elements of a Period-End Timetable ... 575
... 11.3 ... Dependent Activities Already Completed ... 575
... 11.4 ... Analysis of Period-End Activities ... 575
... 11.5 ... Foreign Currency Valuation ... 582
... 11.6 ... Classic GL versus the New GL ... 595
... 11.7 ... Summary ... 596

12 ... SAP ERP Financials Reporting ... 597
... 12.1 ... Building Your Reporting Suite ... 597
... 12.2 ... Reporting Tools ... 599
... 12.3 ... Common Reporting Requirements ... 600
... 12.4 ... Creating Basic Management Accounting Reports with Report Painter ... 607
... 12.5 ... International Financial Reporting Standards (IFRS) ... 627
... 12.6 ... Parallel Accounting Approaches ... 628
... 12.7 ... Summary ... 631

13 ... Implementing and Supporting SAP ERP Financials ... 633
... 13.1 ... Implementing SAP ... 633
... 13.2 ... Supporting Your SAP ERP Solution ... 646
... 13.3 ... Summary ... 650

... The Authors ... 651

... Index ... 653