10 Effective Tips to Maximize Your Existing FI and CO Landscape

Transcription

1 Excerpt from 10 Effective Tips to Maximize Your Existing FI and CO Landscape Paul Ovigele Ovigele Consulting 2012 Wellesley Information Services. All rights reserved.

2 In This Session Walk through 10 proven tips and techniques that you can use to increase the value of your FI and CO landscapes Find out how to optimize your system without the need for any new functionality or external consulting assistance Learn how to make the most of your investment in SAP functionality for financial accounting and controlling Discover simple and practical solutions set up in the SAP system without resorting to complicated and expensive workarounds 1

3 What We ll Cover Using transaction and screen variants Making subsequent postings from FI to CO-PA Using assessments and distributions in SAP General Ledger Enabling multiple account assignments in PO lines Direct Posting to Asset Reconciliation Accounts Setting up G/L Accounts for deferred tax posting Excluding specific cost centers from cost center reports Secondary Cost Element reporting in SAP General Ledger Reversing CO-PA documents Transporting Overhead Rates Wrap-up 2

4 Reasons for Making PCA Adjustments Postings were made to the wrong profit center and now need to be corrected Allocations need to be made to clear out the dummy or default profit centers Document splitting could not find a profit center, hence, the constant profit center was updated which now needs to be cleared Monthly transfers are made from a shared profit center to specific profit centers based on an allocation rule 3

5 Using Distribution Cycles in the SAP General Ledger Transaction FAGLGA31 to create Transaction FAGLGA35 to execute The sender and receiver objects are the SAP General Ledger document splitting characteristics 4

6 Using Assessment Cycles in the New G/L Transaction FAGLGA11 to create Transaction FAGLGA15 to execute Unlike with controlling assessments where you need to specify a secondary cost element as an assessment cost element, here you can specify a balance sheet or P&L account 5

7 Using Journal Entries for PCA Adjustments Transaction FB50 Specify the same G/L account and different profit centers 6

8 What We ll Cover Using transaction and screen variants Making subsequent postings from FI to CO-PA Using assessments and distributions in SAP General Ledger Enabling multiple account assignments in PO lines Direct Posting to Asset Reconciliation Accounts Setting up G/L Accounts for deferred tax posting Excluding specific cost centers from cost center reports Secondary Cost Element reporting in SAP General Ledger Reversing CO-PA documents Transporting Overhead Rates Wrap-up 7

9 Deactivating Classic Profit Center Accounting With the SAP general Ledger, SAP recommends that you eventually deactivate the Profit Center component from your Controlling Area As a consequence, Profit Center Accounting is no longer part of the Controlling module Remove the check from the Profit Center Acctg checkbox Go to transaction OKKP, highlight your Controlling Area, and double click on the folder Activate Components/control indicators 8

10 SAP General Ledger Reports with Profit Centers SAP General Ledger Reports include the below: However, these reports only display primary cost elements (along with balance sheet accounts) 9

11 Activating Business Function FIN_GL_CL_1 Go to transaction SFW5, open up the Enterprise Business Functions folder, and activate the business function FIN_GL_CL_1 This functionality is only available from release ERP 6.0 Enhancement Pack 4 and upwards 10

12 SAP General Ledger Reports with Secondary Cost Elements When you have activated the business function, 2 new folders will appear in the application menu path for SAP General Ledger Reports You will find that there a are a number of new profit center reports which, when executed, show the information for primary and secondary cost elements 11

13 What We ll Cover Using transaction and screen variants Making subsequent postings from FI to CO-PA Using assessments and distributions in SAP General Ledger Enabling multiple account assignments in PO lines Direct Posting to Asset Reconciliation Accounts Setting up G/L Accounts for deferred tax posting Excluding specific cost centers from cost center reports Secondary Cost Element reporting in SAP General Ledger Reversing CO-PA documents Transporting Overhead Rates Wrap-up 12

14 Additional Resources Paul Ovigele, 100 Things You Should Know About Financial Accounting with SAP (SAP PRESS, 2011). Provides little-known tips to optimize the Financial Accounting module Insider Learning Network Financials Blogs by Paul Ovigele: ( Contains several tips and tricks in the Financials and Controlling modules 13

15 7 Key Points to Take Home You can use transaction and screen variants to default certain fields in the customer and vendor master You can use assessments, distributions, and journal entries to make transfer postings between profit centers You can set up multiple account assignment functionality for valuated goods receipt POs You can use selection variants to exclude certain cost centers from cost center reports Secondary cost element reporting is available in the SAP General Ledger if you activate business function FIN_GL_CL_1 CO-PA documents can be reversed using transaction KE4S00 Overhead rates can be imported into a target client using program RKAZUTR1 14

16 Your Turn! How to contact me: Paul Ovigele 15

17 Addendum: Notes from Paul Ovigele s interview on EHP5 for Financials EhP5 Update Paul s Comments Profit Center Reorganization enhancement Parallel Valuation of Cost of Goods Manufactured Enhanced FI/MM reconciliation report If you undergo a restructure of your profit centers - for example, if you delete them or change them or merge them - this business function allows you to automatically update all the map-to-data objects that the profit centers were assigned to, such as materials, sales orders, internal orders, etc. Once you ve chained the profit centers accordingly, you can specify a key date and specify, From this key date, I want all of my master data, which contained the profit center to be chained to the new profit center. That didn't exist before in this nature, and it is very useful to have it now. If you have, for example, depreciation in two different areas - maybe you have a local depreciation area and a group depreciation - this allows you to transfer the depreciation from the parallel area to a parallel actual variant in Controlling. In Controlling, you normally have just one version, but this tool allows you to transfer depreciation to this alternative version, and you can use that to calculate your actual activity rates, and hence calculate an alternative actual cost in Material Cost Ledger. For group companies that have to report different accounting standards, maybe according to U.S. GAAP and according to IFRS, this is a very good tool to accomplish that. This allows you to reconcile inventory balances in the FI/MM modules. It can also allow you, if you just implement it in Material Ledger, to help you reconcile the Material Ledger currency balances to the General Ledger balances. From Paul Ovigele s August 2012 interview on Insider Learning Network: Financials tips from Paul Ovigele on the material ledger, profit center accounting & EhP5 Click here for the full podcast.

18 Addendum: Notes from Paul Ovigele s interview on EHP5 for Financials (continued) EhP5 Update Paul s Comments New Stock in Transit Function Sum Localization This allows you to valuate stock in transit when you transfer goods between plants that belong to different companies within the same group. Previously, when you did that, although in the Logistics module you can see that the inventory is in transit, in the Finance module, you don't get a specific posting that says, "This goes to an in-transit account." Normally this is done by workaround. With this new function, it actually exists in the system. This functionality localizes the national statements for countries like China. It allows you to create the national statement such as balance sheets, profit and loss, and cash flow statement, according to the specific GAAP accounting standards for China. It also allows you to generate official document numbers that can be submitted to the tax authority. This is very good for countries that have specific localized rules. You now have a way of localizing those statements. From Paul Ovigele s August 2012 interview on Insider Learning Network: Financials tips from Paul Ovigele on the material ledger, profit center accounting & EhP5 Click here for the full podcast.

19 Disclaimer SAP, R/3, mysap, mysap.com, SAP NetWeaver, Duet, PartnerEdge, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Wellesley Information Services is neither owned nor controlled by SAP. 18