Overview of the FI Module 4.6fi_01.1 Chapter 1 Overview of the FI Module • The SAP Financial Accounting (FI) module provides integrated, on-line, real-time functionality for processing, recording and maintaining the financial accounting transactions of the business for external reporting purposes. • Chapter Objectives – Provide a general overview of the Financial Accounting module and its sub- modules. – Highlight the various integration points among the FinanciaI Accounting sub-modules and other SAP modules.
The SAP Menu Structure4.6fi_01.*
The SAP Financial Accounting (FI) module provides integrated,
on-line, real-time functionality for processing, recording and
maintaining the financial accounting transactions of the business
for external reporting purposes.
Chapter Objectives
Provide a general overview of the Financial Accounting module and
its sub- modules.
Highlight the various integration points among the FinanciaI
Accounting sub-modules and other
SAP modules.
4.6fi_01.*
Logistics
Accounting
Human Resources
Within the Accounting category, you will find the three core
applications covered in the PwC SAP Training Program:
Financial Accounting (FI)
Treasury (TR)
Controlling (CO)
In this overview, we will present the core applications within the
FI module (G/L, A/R, A/P, Asset Accounting, and Special Purpose
Ledger). We will also briefly mention the differences between the
main areas within the Treasury module (Cash Management and Treasury
Management).
The CO module applications will be discussed later in the
course.
Overview of the FI Module
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Funds Management
Travel Management
General Ledger: (FI-GL) is the sub-module in which all of the
financial accounting data for the legal entity is recorded either
manually or automatically through integrated processes.
Accounts Receivable: (FI-AR) is the sub-module in which the
financial accounting transactions involving customers are recorded
and administered.
Accounts Payable: (FI-AP) is the sub-module in which the financial
accounting transactions involving vendors are recorded and
administered.
Fixed Assets (Asset Accounting): (FI-AA) is the sub-module in which
fixed (physical) assets are created and monitored.
Legal Consolidations: (FI-LC) is the sub-module with the central
task of combining the financial operating results of the companies
within a group to provide overall results for the group.
Special Purpose Ledger: (FI-SL) (also known as Special Ledger and
previously known as the Extended Ledger) provides summary
information from multiple applications at a level of detail that
the user defines.
Funds Management: (FI-FM) is the sub-module that supports financial
checking and control using budgeting techniques.
Travel Management (FI-TM): processes business trip and expense
data. It may be integrated with HR (Personnel Data and
Payroll).
Overview of the FI Module
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Financial Data Entry
Multiple Currencies
Flexible Report Generator
Business transactions with a financial accounting impact are posted
to the FI-GL sub-module on a real-time basis either directly or
through integration from other SAP modules and FI
sub-modules.
Reporting in the General Ledger is available on-line with a range
of sorting and presentation options.
Overview of the FI Module
4.6fi_01.*
Real-time integration with the General Ledger
Integration with Sales and Distribution (SD) and Materials
Management (MM) as a part of the Sales Cycle
Integration with Treasury
All postings in FI-AR are also recorded simultaneously in
FI-GL.
The components of FI-AR are closely integrated with components of
SD and MM which, when properly configured, support an automated
Sales Cycle.
The FI-AR sub-module contains the following features:
A component to control customer credit exposure (Credit
Management)
A reporting function to monitor customer activity
Incoming Payment processing (electronic or manual)
A component to monitor past due customer invoices (Dunning)
Overview of the FI Module
4.6fi_01.*
Real-time integration with General Ledger
Integration with Materials Management as a part of the Procurement
Cycle
Integration with Treasury
Outgoing Payment Program
All postings in FI-AP are also recorded simultaneously in
FI-GL.
The components of FI-AP are closely integrated with components of
MM which, when properly configured, support an automated
Procurement Cycle.
The sub-module contains the following features:
A reporting function to monitor vendor activity
An Outgoing Payment program, which supports all of the standard
Payment Methods (including checks and wire transfers) in printed
form as well as in electronic form (data medium exchange on
diskette and data transmission)
Balance confirmations, account statements and other forms of
correspondence with vendors to support business requirements
Overview of the FI Module
4.6fi_01.*
Batch processing and posting of depreciation expense, interest and
replacement values.
Integration with:
All postings such as asset acquisitions, transfers and retirements
are also recorded simultaneously in FI-GL. Depreciation expense,
interest and replacement values are posted using a batch.
FI-AA supports accounting of traditional assets, assets under
construction (AuC), leased assets and real estate assets.
As a result of the integration in the R/3 System, FI-AA transfers
data directly to and from other systems.
The Materials Management (MM) or Production Planning (PP)
components can post directly to FI-AA. When an asset is purchased
or produced in-house, you can directly post the invoice receipt,
goods receipt, and/or the withdrawal from the warehouse to
FI-AA.
FI-AA or FI-AR can post directly to an asset and a customer account
if an asset is sold.
FI-AA or FI-AP can post directly to an asset and a vendor account
if the vendor invoice is not posted using Material Management
(MM).
You can pass on depreciation and interest to Cost Accounting (CO)
in order to track expenses by cost center and profit center.
Internal orders, within CO, can also be used to collect and control
capital expenditures.
The Plant Maintenance (PM) component can settle maintenance
activities that require capitalization to assets.
Overview of the FI Module
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Special Purpose Ledger (FI-SL)
Provides summary information from multiple SAP applications at a
user defined level
Flexible Reporting Tool
FI-SL provides enhanced tools to manage financial data to support
legal and managerial reports.
Special Purpose Ledgers are defined to meet specific business
requirements through the ability to combine, summarize, allocate,
and plan data that originate from other SAP modules and external
systems.
Overview of the FI Module
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Treasury
TR
The Treasury module consists of Cash Management, Cash Budget
Management, Treasury Management, Loans, Market Risk and Information
Systems.
Cash Management is utilized as a planning tool for cash control and
up-to-date liquidity analysis of a company.
Treasury management has become a standard part of SAP since version
4.0. Its main objective is to ensure liquidity, minimize financing
costs, optimize investment returns, and hedge against fluctuations
in revenues and expenses.
Loans used to be a part of Treasury Management; however, as of
version 4.6, it is a separate sub-module of Treasury. This
sub-module is responsible for processing and administering loans
and mortgages.
Market Risk also was a part of Treasury Management prior to version
4.6. Like Loans, it is now a separate sub-module of Treasury.
Market Risk concerns the management and hedging of currency and
interest rates.
Overview of the FI Module
4.6fi_01.*
The technical integration of the logistics, accounting, and
information flow features is one of SAP’s greatest benefits.
The features of Integration are:
Common organizational structure throughout the system
Seamless processing of common data between applications
Comprehensive support and reference tools
Object and application linking and overall system
communication
Integration of application data
Each time an application module changes, the R/3 System
automatically updates the data in the other application modules
that are affected.
The data entered is updated in the database used by the
applications. All application modules have the same architecture
and user interface.
Interactive processing
The R/3 System interactively processes the user’s input and checks
to ensure that the data is consistent.
Integration of several languages
Several users can work in an application using different languages
because the R/3 System updates the data that was entered in
different languages at runtime.
Overview of the FI Module
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Elimination of duplicate entries
Minimization of system interfaces and maintenance requirements
while maintaining portability
Immediate reflection of financial impacts
Capture of decisions at the source for better control
and accuracy.
Data is available to anyone who needs it, anywhere, anytime.
Processes can run concurrently rather than consecutively, which
reduces processing time.
Data moves across business applications automatically, avoiding
duplication of effort and minimizing missing and erroneous
data.
Overview of the FI Module
4.6fi_01.*
Key Terms:
SAP Financial Accounting module - The Financial
Information/Accounting System that collects all accounting data
within an organization. This system enables the user to evaluate
general ledger, accounts receivable, and accounts payable
information.
General Ledger sub-module (FI-GL) - Records all of the financial
accounting data for the legal entity either manually or
automatically through integrated processes.
Accounts Receivable sub-module (FI-AR) - Records and administers
the accounting data for all customers. In addition, it is an
integral part of the sales system, which includes deliveries and
orders for each customer.
Accounts Payable sub-module (FI-AP) - Records and administers the
accounting data for all vendors. In addition, it is an integral
part of the purchasing system, which includes receipts and invoices
for each vendor.
Asset Accounting ( FI-AA) - Records transactions impacting an asset
from purchase order through retirement. The system can
automatically calculate the values for depreciation, interest, and
insurance.
Legal Consolidation (FI-LC) is the sub-module responsible for
combining the financial operating results of the companies within a
group to provide overall results for the group.
Overview of the FI Module
4.6fi_01.*
Key Terms:
Special Purpose Ledger (FI-SL) - Collects data and provides summary
information from multiple applications at a level of detail that
the user defines.
Funds Management (FI-FM) - Supports financial checking and control
using budgeting techniques.
Cash Management (TR-CM) - Ensures an optimum amount of liquidity to
meet required payments as they come due. TR-CM also monitors cash
inflows and outflows.