INTRODUCTION TO SAP FICO

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SAP FICO MODULE
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PRESENTATION PATH

• Introduction to ERP
• Introduction to SAP
• Configuration Aspects - SAP FI Module.
• Configuration Aspects - SAP CO Module
• Career Planning in SAP.

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Introduction to ERP

• What is ERP?
• ERP is Enterprise Resource Planning
• ERP automates the tasks involved in performing a
  business process.
• ERP enables planning of all the resources (Men,
  Machine, Materials and Money) in an organization

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Introduction to ERP

• ERP products available in the Market are
• 1. SAP
• 2. ORACLE APPLICATIONS
• 3. JDEDWARDS
• 4. BAAN
• 5. PEOPLE SOFT etc.
• SAP is having a market share of over 65.

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Introduction to SAP

• SAP is a leading ERP Package.
• SAP enables an enterprise to undertake its day
  to day and long term activities in an effective
  and efficient way.
• Use of this package makes it possible to track
  and manage, in real-time, sales, production,
  finance accounting and human resource activities
  in an enterprise.

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Introduction to SAP
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Introduction to SAP

• SAP is both the name of the Company as well as
  their ERP Product.
• SAP system comprises of a number of fully
  integrated modules, which covers virtually every
  aspect of the business

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Introduction to SAP

• SAP Systems Applications and Products in Data
  Processing.
• Brief History
• Found in the year 1972 by Wellenreuther, Hopp,
  Hector, Plattner and Tschira
• Renamed in 1977.
• Before 1977 Systems Analysis and Program
  Development .

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Introduction to SAP
Sales
Finance accounts
Inventory
SAP
Purchasing
Production Planning
Since all the modules are integrated data gets
automatically updated with SAP
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Introduction to SAP
SAP Conceptual Areas
Application Area (Initiate and execute SAP
transactions) (Functional)
Basis Area (The technical administration of the
system) (Authorizations/Ids/etc)
Development Area (1. A developers workbench 2.
Create Test ABAP/4 programs) (Technical)
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Introduction to SAP

• SAP Application Modules
• Financial accounting (FI)
• Controlling (CO)
• Materials management (MM)
• Sales and Distribution (SD)
• Production Planning (PP)
• Plant maintenance (PM) Customer Service (CS)
• Human resources (HR)
• People with respective domains will enter in to
  the respective functional or application areas

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INTRODUCTION TO FI MODULE

• Key elements Of FI Module
• General ledger
• Accounts payable Sub ledger
• Accounts receivable Sub ledger
• Asset Management Sub ledger

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INTRODUCTION TO FI MODULE

• FI Module is needed to generate PL A/C and
  Balance sheet of a firm. In order to generate the
  financial statements transactions are recorded in
  the general ledger
• GENERAL LEDGER
• All the activities needed to post a transaction
  are undertaken.
• Preparation of Chart of Accounts.
• Creation of General Ledger Accounts.
• Posting of a transaction.
• Generation of reports.

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INTRODUCTION TO FI MODULE

• ACCOUNTS PAYABLES
• Activities related to purchase of Raw Materials
  and purchase of other items on credit are
  recorded in this module.
• Accounts payable in SAP is treated as a
  sub-ledger.
• A G/L account Sundry creditors is maintained at
  the G/L Level.
• At the Sub- ledger level a record Vendor Master
  is created.
• All transactions are posted to sub-ledger.
• Transactions posted to the sub-ledger are
  maintained at two levels- one in the sub-ledger
  and the same data gets transferred to the General
  ledger .

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ACCOUNTS PAYABLE

• SUB
  LEDGER
• 
  

VENDOR MASTER
VENDOR X
VENDOR Y
GENERAL LEDGER
SUNDRY CREDITORS RAW MATERIAL
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Introduction to Accounts Receivables

• ACCOUNTS RECEIVABLES
• Activities related to sale of finished goods and
  sale of other items on credit are recorded in
  this module.
• Accounts Receivable in SAP is treated as a
  sub-ledger.
• A G/L account Sundry debtors is maintained at the
  G/L Level.
• At the Sub- ledger level a record Customer
  Master is created.
• All transactions are posted to sub-ledger.
• Transactions posted to the sub-ledger are
  maintained at two levels- one in the sub-ledger
  and the same data gets transferred to the General
  ledger .

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Accounts Receivables


SUB
LEDGER

SUB
LEDGER

CUSTOMER MASTER
CUSTOMER X
CUSTOMER Y
GENERAL LEDGER
SUNDRY DEBTORS SALES
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Introduction to FI Module Asset Accounting.

• Activities related to purchase ,sale, transfer
  and scraping of fixed assets are undertaken in
  this module.
• Lifecycle of a fixed asset becomes a part of
  Asset accounting.
• Asset Accounting is treated as a sub-ledger in
  SAP.
• At the Sub-ledger level Asset Master is created
  to record every asset separately.
• Asset class is created to know the total value of
  the assets.
• Asset Master is linked to the Asset class.
• All transactions are posted to the Asset master.

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Introduction to FI Module Asset Accounting.

• Asset Class is linked
• To the asset master

ASSET CLASS
ASSET MASTER
Plant machinery 1
Plant machinery 2
Plant machinery 3
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Module CO Controlling

• Data flow in Controlling will be from FI
• The module is needed for Internal management
  reporting
• CO Reporting
• Reports by cost centers.
• Orders and Projects.
• Budget/plan.
• Actual vs. plan.
• Reporting the variances.
• Taking corrective action.

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Module CO Controlling

• Represents the flow of cost and revenue
• Instrument for organizational decisions
• Key elements of the CO application module include
  
• Cost center accounting - provides information on
  the costs incurred by the business cost center
  wise . E.g Salaries paid to finance or HR
  departments employees, Travelling expenses paid
  to particular departments employee.

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Module CO Controlling

• Internal Orders - Provide a means of tracking
  costs of a specific job, service, or task. E.g
  Marketing department wants to find out the cost
  incurred for conducting an advertising campaign.
• Profit center accounting - A profit center will
  have revenues as well as costs. For a profit
  center we will be booking the revenues as well as
  costs and do the result analysis for the
  respective profit center.
•  

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Module CO Controlling

• Profitability analysis It will enable A Grp to
  analyze the profitability of market segments
  according to the following characteristics
• Products
• Customers
• Sales Districts (i.e. USA West, USA East, Saudi
  Arabia etc.)
• Others.
• E.g Sale of a product in specific area for a
  specific time period.
• FI-MM AND FI-SD INTEGRATION

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How Can a Career be Planned?

• After completing the course, one can be-
• Functional Consultant.
• Support Consultant
• End User

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ROLE OF FUNCTIONAL CONSULTANT

• Functional Consultant in an End To End
  Implementation Project

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ROLE OF FUNCTIONAL CONSULTANT IN END TO END
IMPLEMENTATION

• Functional consultant is expected to have
  knowledge about the current business process.
• He is expected to design current business flows
  into SAP .
• His main task will be to customize the respective
  business processes.

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ROLE OF SUPPORT CONSULTANTS

• The main job of the support consultant is to
  provide assistance to the customer or the
  organization where SAP is already implemented
• Primarily responsible for solving the problems
  of end users.
• When a problem arises the support consultant has
  to diagnose, analyze and solve the issue

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ROLE OF END USER

• End user will be using the ERP Software
  implemented in the Organization.
• His role is restricted to data entry.
• He undertakes activities like passing the JVs,
  entering the data related to invoices etc.

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Thank You!