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Module 1

Module 1. Company Code And Chart of Accounts. SD. FI. MM. CO. R/3. PP. AM. Client / Server. PS. QM. PM. WF. HR. IS. Financial Accounting (FI). The key building block for the organization Most modules build on the FI organizational elements FI is for External Accounting for:

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Module 1

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  1. Module 1 Company Code And Chart of Accounts

  2. SD FI MM CO R/3 PP AM Client / Server PS QM PM WF HR IS Financial Accounting (FI) • The key building block for the organization • Most modules build on the FI organizational elements • FI is for External Accounting for: • Stockholders • Bankers • Lenders • Auditors • SEC • IRS

  3. Company Code • A company code represents a stand-alone legal entity that requires its own set of accounting records for reporting purposes • The company code represents the smallest organizational unit for which accounting can be carried out: • The level where transactions are processed • The level where accounts are managed • The level where legal individual financial statements, such as the balance sheet and the profit and loss statement, are created

  4. Company • Consolidated financial statements are created at the company level • A company can include one or more company codes • All company codes must use the same chart of accounts and fiscal year • The financial statements of several companies can be “rolled up” to the company level using the legal consolidation module (whatever that is).

  5. Chart of Accounts • A chart of accounts is a listing of the accounts • A chart of accounts must be assigned to every company code, but more than one company code can share a chart of accounts • FI is for external reporting, CO is for internal reporting • In other (usually older) systems,there may be thousands of accounts in the chart of accounts with internal vs. external coding logic. With the FI/CO concept, there are usually fewer accounts in chart of accounts.

  6. Client, Company, Company Code For Fitter Snacker, we will not use the Company structure

  7. Fiscal Year Variant • Determines the posting periods to be used by the company. It should be configured to match the company’s fiscal year. • e.g. Jan 1 to Dec. 31 for most businesses, July 1 to June 30 for most colleges and universities • SAP allows for 12 regular posting periods and up to 4 special posting periods • Special periods allow for posting of audit or tax adjustments to a closed fiscal year • 4 periods allow for quarterly adjustments

  8. Credit Control Area • An organizational unit or area of responsibility created to control customer credit limits • A company code is assigned to one and only one credit control area • Multiple company codes can be assigned to one credit control area • Credit control covered in Module 13

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