Friday, 25 March 2016

Link Between SAP SD, MM & FI

The link between SD and MM :-


  1. When you create sales order in SD, all the details of the items are copied from Material master of MM.
  2. MRP and availibility check related data is also taken from MM although you control this data in SD also.
  3.  While you create inbound/outbound delivery with reference to a sales order,the shipping point determination takes place with the help of the loading group, plant data, shipping conditions etc. This also refers to Material Master.
  4.  The material which you are entering in a sales order must be extended to the sales area of your sales order/customer otherwise you cannot transact with this material.
There are many such links between SD and MM.

Now the link between SD and FI :-


1. Whenever you create a delivery with reference to a sales order, goods movement takes place in the bacgground. eg. In case of standard sales order, you create an outbound goods delivery to the customer. 
Here movement 601 takes place. This movement is configured in MM. Also, this movement hits some G/L account in FI. Every such movement of good s hits some G/L account.


2. The accounts posting in FI is done with reference to the billing documents (invoice, debit note, credit note etc) created in SD. Thus this is a link between SD and FI

3. Tax determination: In case of a tax determination also, there is a direct link between SD and MM

SD Integration points with other modules

SD module is highly integrated with the other modules in SAP.
Sales Order – 
Integration Points                      Module
•Availability Check             -       MM
•Credit Check                   -       FI
•Costing                        -       CO/ MM
•Tax Determination              -       FI
•Transfer of Requirements       -       PP/ MM
 
Delivery & Goods Issue – 
Integration Points                      Module
•Availability Check             -       MM
•Credit Check                   -       FI
•Reduces stock                  -       MM
•Reduces Inventory $            -       FI/ CO
•Requirement Eliminated         -       PP/ MM
 
Billing -
Integration Points                      Module
•Debit A/R                      -       FI/ CO
•Credit Revenue                 -       FI/ CO
•Updates G/ L                   -       FI/ CO
  (Tax, discounts, surcharges, etc.)
•Milestone Billing              -       PS
 
Return Delivery & Credit Memo -
Integration Points                      Module
•Increases Inventory            -       MM
•Updates G/ L                   -       FI
•Credit Memo                    -       FI
•Adjustment to A/R              -       FI
•Reduces Revenue                -       FI

SD Transaction Code Flow: 

Inquiry / Document type IN 


Tcode for creation VA11,VA12,VA13. tables VBAK,VBAP


Quotation / QT 


Tcode for creation VA21,VA22,VA23. tables VBAK,VBAP


Purchase Order PO 


Tcode for creation ME21,ME22,ME23. tables EKKO,EKPO.


Sales Order OR 


Tcode for creation VA01,VA02,VA03. tables VBAK,VBAP


Delivery LF 


Tcode for creation VL01,VL02,VL03. tables LIKP,LIPS


Billing MN 


Tcode for creation VF01,VF02,VF03. tables VBRK,VBRP



FI-CO Overview

OBJECTIVES
  • Define the SAP R/3 organizational elements for Financial reporting and control
  • Identify financial integration points with the logistics chain
  • Execute financial and management reports in the SAP R/3 system
Financial Accounting is broken down into the following sub-modules:
  • General Ledger accounting
  • Accounts Receivable
  • Accounts Payable
  • Legal Consolidations
  • Special Purpose ledger
  • Asset Accounting
Controlling is broken down into the following sub-modules:
  • Overhead Cost Controlling
  • Product Cost Controlling
  • Sales and Profitability Analysis
  • Activity Based Costing

Organizational Units in SAP Financial Accounting

·         Enterprise controlling (EC)an enterprise-wide view of financial reporting

·         Treasury (TR) control of cash, banking, securities, and funds management

·         Financial Accounting (FI) core financial accounting integrated with sub-ledgers

·         Controlling (CO) management accounting for tracking overhead and profitability as well as production process control Investment Management (IM)

·         Chart of accounts Contains all account numbers

·         Group Company Consolidation of company codes

·         Company Code Independent balancing unit used for legal reporting

·          
·         Business Area Used to create internal balance sheets


Financials Reporting and Analysis

  • External accounting is directed "outwards" and is regulated strictly by tradition and law to ensure comparability.
    • Principles of double entry bookkeeping
    • Profit and loss system
    • Period based accounting
  • Internal accounting is purely for internal use and serves to control and manage the organization. It is constructed along the lines set by management and must be flexible.
The Audit Trail
  • Every transaction in the system is represented by a document
  • A document records a business transaction
  • Documents are accessible in real time and are stored centrally
  • Data resulting from transactions posted to the system can be viewed at every level of detail from the original document to the final report.
  • The system provides an audit trail of the reporting information through the drill down capabilities
General Ledger and its Subledgers
  • Transactions that affect financials update the General Ledger via subledgers that are directly integrated.
  • Subledgers reduce the number of General Ledger accounts shown on the Financial Statement.
  • The balances of subledger accounts are automatically updated in the General Ledger through a Reconciliation Account.