Company Code A required structure A legally independent entity The smallest organizational unit for which accounting can be carried out The level where business 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 A BALANCED SET OF BOOKS
CLIENT CHART OF ACCOUNTS COMPANY CODE COMPANY CREDIT CONTROL AREA CREDIT CONTROL AREA
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
CLIENT CHART OF ACCOUNTS COMPANY CODE COMPANY CONTROLLING AREA
Controlling Area An organizational unit defining the company's cost/ managerial accounting operations A company code is assigned to one and only one controlling area A controlling area can have multiple company codes assigned to it –This allows cross company cost allocations and reporting
1 2345 6 7 JANUARY FEBRUARY DECEMBER Fiscal Year Variant Determines the fiscal year Calendar year or non-calendar year Allows the use of special periods to aid year-end closing Is assigned to a company code
The functional Components of FI FI-GL FI-AR FI-AP FI-AA General Ledger Accounts Receivable Accounts Payable Asset Accounting FI-SL FI-LC Special Purpose Ledger Legal Consolidation
General Ledger G/L A ledger contains the accounts of an accounting system. Historically the ledger was a book where the accountant wrote into the postings. The main ledger of an accounting system is the general ledger. The general ledger (G/L) contains all accounts of the accounting system. All other ledgers are subsidiary ledgers (subledgers) of the general ledger. The SAP system contains: accounts payable, accounts receivable and asset accounting.