1. Agenda – SAP FICO SAP FICO processes and Components
G/L: General Ledger
AP: Accounts Payable
AR: Accounts Receivable
AA: Assets
All modules will be reviewed through most important organizational elements, functions and useful transactions
Period end activities will be presented

2. 1. Basic principles in Finanace, Legislation
Financial statements have to be created according to local accounting standards like; IFRS, U.S. GAAP, HGB
Balance sheet – ”Tase”
P&L profit and Loss – ”Tuloslaskelma”

3. 2. SAP FICO Processes and Components
General Ledger Accounting (FI-GL):
The central task of G/L accounting is to provide a comprehensive picture for external accounting by means of accounts
Accounts Payable (FI-AP):
The accounts Payable application component records and administers accounting data for all vendors. It is also an integral part of purchasing system, where deliveries and invoices are managed according to vendors.
Accounts Receivable (FI-AR):
The Accounts receivable application component records and administers data of all customers. It is also an integral part of sales management.
Asset Accounting (FI-AA):
The Asset Accounting component is used for managing and supervising fixed assets with the SAP System. In Financial Accounting, it serves as a subsidiary ledger to general Ledger, providing detailed information on transactions involving fixed assets.
Scope of the training: GL, AP, AR, AA (external accounting)
CO internal accounting

4. SAP Financial organizational structure
General ledger accounting is kept at the company code level. It is used to create the legally required balance sheets and profit-and-loss statements for a company code.
The company code must be specified for every financial transactions in SAP ERP. This is done either; manually, or by deriving the company code from other data elements.
Each company code has a local currency.
FICO Structure = Company Code
A unique, four-character key which can be alphanumeric

5. General Ledger New G/L accounting Chart of accounts Account display
G/L transaction entry

6. New G/L accounting New G/L => manage parallel ledgers
As of SAP ERP, new Genral Ledger Accounting is available. It allows you (within General Ledger Accounting) to manage multiple ”general ledgers” in parallel and in this way create different financial statements (ledger approach).
In the new General Ledger Accounting, one ledger has the role of ”leading” ledger.
However, as previously in old releases, you can still manage accounts in parallel using additional accounts (accounts approach), despite new general Ledger Accounting. In this case, there is only exactly one ledger in new General Ledger Accounting – the leading ledger.

7. New G/L organizational structure
Profit center, before part of CO (master data)
Segments can be used as dimension in reporting
In new General Ledger Accounting, profit centers can be part of Financial Accounting. As company codes, the profit centers function as an dimension for financial reporting.
A profit center can represent many things:
An organizational unit within the company (such as a plan)
A line of business
A geographical location
Unlike the other dimensions in the new General Ledger Accounting, profit centers are still considered as master data, despite being a organizational unit.
The segment is a new organizational unit available with new General Ledger Accounting. Segments can also be used as a dimension for reporting purpose – keyword: segment reporting in IFRS and U.S. GAAP.
The aim of segment reporting is to:
Provide an insight into different business activities of a diversified company
Provide information about the general environment
The purpose of segment reporting is to:
Provide a better overview of a company’s economic performance
Improve forecasting of potential sales and financial reserves of a company
Better anticipate risks and opportunities of a company

8. Chart of accounts Unlimited amount of charts of accounts
Country-specific chart of accounts in standard system
Account definition; P&L or Balance type of account
Chart of accounts can be used by multiple company codes
you can create company code specific settings (currency)
Account groups used for manage and organize accounts
Chart of Accounts:
Each general ledger is set up according to a chart of accounts. The chart of accounts contains the definitions of all G/L accounts in ordered form. The definitions consist mainly of the account number, account name, and the type of G/L account, that is, whether the account is a P&L-type account or a balance-sheet-type account
Account group:
Account groups are used to organize and manage a large number of G/L accounts.
Accounts with the same account group normally have similar business functions. You could, for example, have an account group for: cash accounts, expense accounts, revenue account and other balance sheet accounts.
The account groups are assigned number ranges.

9. Accounts - Reconciliation
Subsidiary ledgers connected to GL are; AP, AR and asset ledger
Reconciliation accounts connect subsidiary ledgers with the general ledger in real time. This means that a posting to a subsidiary ledger posts to the corresponding reconciliation account in the general ledger at the same time.
The subsidiary ledgers, which are connected to the general ledger via reconciliation accounts are; accounts payable, accounts receivable and asset ledgers.

10. Account display in SAP One transaction for debit and credit
Profit centers, segments or business area are also linked to the transactions (if used)
Transaction
FAGLL03
A transaction figure describes the total of all posting on an account in debit or credit. One transaction figure for debit and one transaction figure for credit are always kept for each account in the SAP system.
If a G/L account has line item display marked in its master record, one can drill down from the balance of account to the line items and then to the documents.
If using profit centers, segments or business areas, transaction figures are also kept per profit center, segment or business area.
The balance display and the item display are provided to display account data. The line item display (Display/Change Line Items FBL3N) can be used only for G/L accounts for which the corresponding function has been activated in the master record. The balance display (Display/Change Items (New) FAGLL03) is always available
Transaction
FBL3N

11. GL Transaction entry Previous transaction FB01 / FB03 Transaction FB50
You can easily create and post G/L account document using a single-screen transaction. The entry screen is divided into the following areas:
Work templates: here you can select screen variants, account assignment templates, or held documents as references. A held document is an document that a user saves without posting it, with the idea that the user will complete and post the held document later.
Header data: header data applies to the whole document, such as postings date and document type. Some of the header data can be in display format only, or hidden from the user via editing options
Line item information: here the line items of the document are entered
Information area: here, the debit and credit balances are displayed by using traffic light icon.

12. Document type & Posting key
Document type = used to distinguish and order various accounting documents, header information
Posting key = telling which account type to be used and whether a posting is debit or credit
Document types are used to distinguish between and order various accounting documents easily. Each document is assigned to a document type, which is entered in the document header. Document numbers are provided by the document number ranges assigned to one or more document types.
Note, for G/L account postings, document type SA is most often used, although other documents types are possible, such as accrual/deferral documents, valuation documents, and so on.
Each line item contains exactly one posting key. The instrument is used for internal control and is entered in the complex posting screen to tell the system:
which account type is being posted to
Whether the line item is a debit or credit posting
In the SAP system, there are a large number of standard posting keys. Each posting key is used for posting either a debit or a credit to one account type.
For postings in the general ledger, you need only two posting keys:
Posting key 40 for debit items
Posting key 50 for credit items

13. Accounts Payable - AP Vendor Accounting transactions
Document splitting
CO account assignment
Payment
Purchase process

14. Vendor Master record – FK03 (XK03)
General data and company code specific data
Payment condition, reconciliation account
Different account groups
As with G/L accounts, vendor accounts are made up of the two areas of general data and company code settings:
General data: A vendor account is defined for all company codes at the client level. General data, such as the vendor’s name and address, is stored here.
Company code: Postings cannot be made to the account for a company code until company code-specific settings have been created. These settings refer only to the relevant company code and include details, such as agreed payment conditions or a reconciliation account.
Vendor account group: vendor accounts can be divided into various account groups in the same way as G/L accounts. They can be organized and managed more easily. The account group controls the screen layout of all areas of the vendor master record, not just the company code data as in the case of G/L account groups.

15. AP manual transaction entry
Vendor invoice without reference to purchase order
Operating expenses => cost accounting relevant assignment (cost center, internal order)
G/L account need to have a primary cost element
You can easily create and post vendor invoices or credit memos using one-screen transaction. This type of vendor invoice entered directly in A/P is miscellaneous invoice, without reference to a purchase order.
Work templates: here, you can select screen variants, account assignment templates, or held documents as reference
Header and vendor data: Document header and vendor line item data is entered here.
G/L account items: the G/L line items for the document are entered here
Information area: The document balance and information about the vendor is displayed here
This transaction can also be used to create documents in foreign currency. The foreign currency amount is translated into local currency using defined exchange rates.
When entering an expense item for an operating expense, you must also enter a cost accounting-relevant assignment, such as cost center or internal order. This means that when the item is posted, documents are created in management Accounting and Accounting. A primary cost element must exist for the G/L account in order for this to happen.

16. Document splitting (New G/L)
A document have multiple assignment objects
Balance sheets required on segment level
Automatically derivation of objects
SAP supports derivation of segments from profit center
Profit centers derrived from Cost centers, internal orders, projects
Currently, SAP supports derivation of the segment from the profit center. In turn, the profit center can be derived, for example from the following:
Cost center
CO internal order
Project
Document splitting, You can specify in Customizing that the system is to complete the missing entries automatically.
The document splitting is only possible in new general Ledger Accounting, that is, not until SAP ERP.

17. CO account assignment
Accounts with primary cost elements (CO) requires an account assignment object
Real or statistical account assignment objects
One real controlling object in each posting
Cost center is always a real object but can be used in both real and statistical postings
In order to post to accounts in Financial accounting that have got a primary cost element in CO, you need to assign a CO account assignment object.
The account assignment object itself can either be a real or a statistical object.
Note: the cost center is an exception to this rule. This is always a real object. It can be posted to in both real and statistical postings.
Note the following rules for account assignments:
You need to specify a real controlling object in each posting item
You cannot assign a CO-object such as a statistical internal order without also specifying a real controlling object
You cannot assign costs to more than one real controlling object in one post
The only, exception to this is that you can post to a cost center and one real controlling object. In this case, the posting is actual for the additional controlling object and statistical for the cost center.

18. Recurring entry
Used for postings that are repeated at regular interval
Stored in the system as recurring entry orginal document
Contains date of first and last postings
Accounting documents generated by recurring entry program
You can use recurring entry program for postings that are repeated at regular intervals, such as rent payments and payments of fees and property taxes. With this program, the necessary documents are generated automatically.
Recurring business transactions must be stored in the system as recurring entry original documents for this to be possible. Each recurring entry original document contains the date of the first and the last postings, the frequency at which postings should be made, and the date of the next planned postings.
The recurring entry program must be started at regular intervals within a specific period. The program selects all recurring entry original documents in which the date of the next postings falls within the specified period; and the generates a batch input session.
With the batch input session is run, an accounting document that corresponds to the original document is posted, and the date of the next postings is updated in the original recurring document.

19. Outgoing Payments
Standard system contains common payment methods and forms for each country
Automatic payment process steps:
Maintain parameters
Run a payment proposal
Check the payment proposal
The payment run
Print payment media
A payment transaction can be carried out either manually or automatically using the payment program.
The standard system contains common payment methods and corresponding forms that have been defined separately for each country.
Automatic payment process comprises the following steps:
Maintain parameters
Run a payment proposal
Check the payment proposal
The payment run
Print payment media

20. Procurement to Pay process
The procurement cycle:
Demand determination: The department responsible can register a requirement for materials manually via purchase order to Purchasing.
Determining the source of supply: The purchase responsible is supported by the system in determining possible sources of supply. One possibility for determining the source of supply is creating queries and subsequently entering the quotations. Furthermore, you can access purchase orders and conditions that already exist in the system.
Supplier selection: Comparing the prices in different quotations makes selecting supplier easier. Letters of rejection can be sent automatically.
Purchase order handling: When creating a purchase order, the system provides you in the entry process
Purchase order monitoring: The purchase can monitor the processing status of the purchase order in the system. For example, he can determine whether the goods or the invoice have been received for the corresponding purchase order item. Dunning processes are also supported.
Goods receipt: the system checks the amount of goods received against the purchase order quantity
Invoice verification: the vendor invoices are checked to see if the accounting and the content are correct
Payment processing: the vendor payment is usually done in Financial accounting.

21. ”Three-way-match” Purchase order - Goods receipt - Invoice receipt
Purchase order history in PO displays documents
The three-step verification, commonly referred as the ”three-way-match”, is the standard procedure for posting procurement transactions in Materials management. The procedure contains three steps:
Purchase order: Create a purchase order in Materials management (MM). Do not make any postings in Financial accounting
Goods receipt: To update the receipt of inventory or consumable material, generate a material document in MM. At the same time, create a document in FI that posts the value of the goods to the merchandise account as a debit and the goods receipt/invoice receipt (GR/IR) to the clearing account as a credit in the general ledger.
Invoice verification: Post a vendor invoice in MM using invoice verification. This automatically generates a document in FI. The accounting document contains the invoice amount that gets posted to the GR/IR account (debit) and vendor account (credit)

22. Customer AR transaction Payments Dunning Sales process
Accounts Receivable
Customer
AR transaction
Payments
Dunning
Sales process

23. Customer Master record – FD03 (XD03)
General data and company code specific data
Different account groups
As with G/L accounts, vendor accounts are made up of the two areas of general data and company code settings:
General data: A customer account is defined for all company codes at the client level. General data, such as the customers’s name and address, is stored here. General data applies for all company codes that do business with the customer.
Company code: Postings cannot be made to the account for a company code until company code-specific settings have been created. The company code segment information that pertains to just one company code, such as terms of payment.
Customer account group: In the same way as for G/L acoounts and vendor accounts, customer accounts are stored in various account groups, so that they can be organized and managed more easily. Account groups define the layout of all parts of the customer master record. That is, they determine which fields are optional. Mandatory, displayed, or hidden.

24. AR manual transaction entry
Invoices and credit memos created commonly through integration with sales order management
Nearly all invoices and credit memos from customers reach the accounts receivable component through integration with sales order management component. In exceptional cases, if there is no reference to a sales order, invoices and credit memos can be entered using the Enjoy transaction:
Work templates: Here you can select screen variants, accounts assignment templates, or held documents as reference
Header and customer data: Document header and customer line item data is entered here.
G/L account items: The G/L line items for the document is entered here
Information area: The document balance and information about the customer are displayed here. It also contains a link to the master data and open items.
This transaction can also be used to create documents in foreign currency. The foreign currency amount is translated into local currency using the defined exchange rate.

25. Incoming Payments
Complete payment: full amount or with agreed discounts
Minor payment difference: within tolerance group settings
Outher payment dealt with manually, methods for postings:
Partial payment: the short paid item isn’t cleared
Residual item: the open invoice is cleared and a new open item is created
Incoming payments can be dealt with in several ways in different companies and countries. Incoming payments are basically posted as shown in the figure.
The items are cleared if the customer pays open items in full amount or with agreed cash discount
If a minor payment difference exist, this can be charged off automatically. The maximum amount that constitutes a minor payment difference is defined in the tolerance group settings
Any payment difference outside the tolerance group must be dealt with manually. The two methods of posting payment differences are:
Partial payment: the item being short-paid does not clear. A new open item amount of the payment is created on the credit side. The credit entry shows up right above the open item being paid and it reference the open item being short-paid
Residual item: The open invoice is cleared and a new open item (residual item) in the amount of the payment difference is created.

26. Dunning process Dunning is controlled by dunning procedure
Must be entered in every customer account
The SAP system provides you with a tool that automatically analyzes all the open items and duns any items that are overdue. The system determines a dunning level, which corresponds to the number of days in arrears. The dunning level determines the dunning charges and interest levied, as well as the dunning test is elected. The dunning history keeps records of which dunning notices have been issued.
You can trigger automatic dunning for a single account (individual dunning notice), or you can have a dunning program carry out automatic dunning for a selected number of accounts.
Dunning is controlled by the dunning procedure. A dunning procedure must be entered in every customer and/or vendor account that is to be included in the automatic dunning.
Dunning runs: During the dunning run, accounts are selected and checked for overdue items. The system then checks whether dunning notices have to be sent and assign the relevant dunning levels. All dunning data is stored in a dunning proposal.

27. Sales process The sales order processing:
Customer query: You create and send a quotation
Order processing: You create a sales document
Procurement: The system deterimines the supplier of goods using the data stored by you
Shipping processing: You organize and execute the delivery of the goods
Invoicing: You create the invoice and transfer all required data to accounting
Payment processing: You check open items and post incomming payments

28. Sales and financial documents
Document flow, shows all documents created
PGI
Sales order: The sales order forms the basis of the sales process. Once a customer has placed an order, a sales order must be created at the start of the process. The sales order is generated at the distribution chain level. The ordered items can be from different divisions. The sales order is a document in sales order management and does not cause any postings in financial accounting.
Outbound delivery: On the day of the shipping, an outbound delivery documents is created. Billing for the delivery can take place only when goods have been taken from the warehouse stock and posted as goods issue.
Picking: The warehouse management function is used for picking. A transfer order has to be created, which generates the pick order. The requested goods are taken from the warehouse and prepared for delivery.
Goods issue: The goods to be delivered are posted as a goods issue. A goods issue document is created in materials management, and an accounting document is created in accounting so that the goods issue is posted to the correct G/L accounts.
Billing: A billing document is created in the sales order management, and a printed invoice is sent to the customer. At the same time, a document is created in accounting so that the receivable and the revenue can be posted to the correct accounts.
Document flow: This is a tool that allows you to view the related documents in the process.

29. Asset accounting Asset master Asset class Transactions
Assets under construction

30. Asset master record
Asset = intended for long-term use and can be identified in the balance sheet
Posting to one company code
Asset master records; An asset is typically an object, a right, or an item owned by enterprise that is intended for long-term use, and can be identified individually in the balance sheet. Each asset belongs to a company code. All postings made for the asset (acquisitions, retirements, depreciation, and so on) are posted in the assigned company code.
Note: Additionally, you can assign the asset to a business area, a profit center, a segment, and to various management accounting objects, like cost center, internal order, or work breakdown structure (WBS) element.

31. Asset class Each asset has one asset class
Also asset classes for intangible assets
Different asset classes for each balance sheet line item
Special asset class; under-construction and low-value
The asset class is the main criterion when defining the asset. Each asset must be assigned to one asset class. In the asset class, you define certain control parameters and default values for depreciation and other master data.
Note: You can also create asset classes for intangible assets and leased assets. Functions are available for processing leases.
Assets that do not appear in the same line item of the balance sheet (such as buildings and equipment) are typically assigned to different asset classes (with different account determination keys). Additionally, there is at least one special asset class for assets under construction and one low-value assets.

32. Transaction type Always included when posting to an asset account
Distinguishing characteristic of various asset postings
Transaction types: the transaction type is an addition to the asset posting keys 70 (debit) and 75 (credit). It has to be included when posting to an asset account. The transaction type is necessary for asset accounting. It specifies exactly where the asset posting is listed in the asset history sheet.
The transaction type is the distinguishing characteristic of various asset postings, for example:
Buying and selling
Credit memos
Acquisitions from internal production
Adjustment postings
Retirements without revenue
Depreciation and appreciation

33. Asset transactions Posted in 3 different ways
Asset transactions (acquisitions, retirements) can be posted with various ways to meet the organizational and business requirements of the company. In asset accounting, you can post in the following ways:
Without a vendor or a purchase order: The offset entry is made to a G/L clearing account
To a vendor: There is no reference to a purchase order
With materials management: using the following functions: purchase order, goods receipt, and invoice receipt
When posting to accounts of two subsidiary ledgers, that is, to the asset and to the vendor, the reconciliation accounts of both subsidiary ledgers are updated with general ledger.

34. Asset explorer (AW01N)
Possted transactions, asset depreciation, transactions
Asset explorer:
The asset explorer offers an overview of the activities for an asset. You can use the Asset explorer to display and manage the following asset-related elements:
Posted transactions: view all transactions that have been posted to the asset
Asset depreciation: Display the planned and posted depreciation per depreciation area, per period, for each fiscal year
Transactions: View the details of accounting transactions

35. Asset under construction
Handled with or without IM
When a AuC is completed following actions are required: create master data and settle the values
Assets under construction:
The expenses for assets under construction (AuC) can be managed in two ways:
Investment management: In the investment management component, you can create, post, and manage investment orders or investment management projects. These orders or projects are the reconciled with AuC. The investment management component provides extensive function for supporting investment procedures.
Without investment Management: If the Investment management component is not used, the AuC can be posted to directly in the Asset accounting.
Once the asset is complete, you must perform the following actions:
Create Master data: Master data must be created (if it does not already exist) for the asset to with the AuC will be settled
Settle Asset Values: The values from the AuC account have to be settled to one or more completed assets. The costs are distributed to one or more assets with the help of settlement rule. This rule specifies which percentage of the AuC is settled with which asset.

36. Period end
General AP AR
Asset
G/L

37. Period-End activities
Technical: closure and open periods
FI processes to be reviewed in next slides
The pre-closing activities that occur on the last day of previous month are as follows:
Technical – Open a new accounting period in Financial Accounting (FI), close the previous month in Materials Management (MM), close subledgers in FI, and perform a preliminary close of general ledger (G/L) in FI
FI – As part of pre-closing activities, enter accruals and deferrals, process recurring entries, and process bad debt expenses in Account Receivable (AR).
MM – Maintain the goods receipt and invoice receipt (GR/IR) clearing account and post material revaluations.
Human Resource (HR) – Post payroll expenses
Sales and Distribution (SD) – Post goods issue for deliveries to customers
The managerial closing activities are as follows:
Perform Controlling (CO) allocations and reposting.
Lock the old accounting period.
Reopen the G/L for adjustment postings
The closing activities for external reporting purposes are as follows:
FI – Perform valuations of open item in foreign currency
Technical – Close the previous period
FI/CO – Create document reports like tax reports, asset history sheet for external reporting, and managerial reports for internal purposes.

38. Year-End activities Own year-end activities exist
For the final period of the fiscal year, in addition to regular month-end closing activities, year-end closing activities are performed.
The pre-closing activities that begin in the old moth are as follows:
Technical – Open the first accounting period of the new fiscal year in FI and perform fiscal year change in Asset Accounting (AA) and balance carryforward in FI.
MM – perform a physical inventory count (may be performed on up to a monthly basis)
Production planning (PP)/CO – Update product cost estimates (may be performed more frequently)
MM – perform lowest value determination and LIFO/FIFO valuation
AA – perform asset valuations and investment support
FI – Conduct balance confirmations for customer or vendors
The closing activities for external reporting are as follows:
FI –GR/IR clearing account analysis, receivables and payables reclassification, reconsiliation of prior year to new year, and other adjustment postings
Technical – Final closing of the old period (accounts receivable and accounts payable (AR/AP) and G/L.
FI/CO – Creating external and internal reports

39. Accounts Payable
Year-end closing can be divided into two main sections.
Legal requirements (procedures required by the government authorities)
Technical and organizational requirements (procedures that are technically required or needed to support the accounting organization)
At the beginning of the fiscal year, the balances carry forward program is run, carrying forward the balances of the vendor accounts to the next fiscal year.
The posting periods of the old fiscal year are blocked and special periods for closing postings for fiscal year-end adjustments are opened.
Afterwards, the balances with selected vendors are confirmed, the foreign currency documents valuated, and the accounts payable are regrouped according to remaining life (required only in certain countries).

40. Foreign currency valuation
Valuation based on period closure exchange rate
Cannot be posted directly to payables account
A foreign currency valuation is necessary if vendor accounts contain open items in a foreign currency. The amounts of these open items are translated to the local currency at the time they are entered, using the exchange rate that is valid on the posting date. The exchange rate is probably different at the time of closing, and the open items need to be valuated again. A program valuates the open items using the new exchange rate and enters the valuation difference in the valuated line item.

41. Accounts receivable
At the start of the new fiscal year, the balance carry forward program is run. It ensures that the balances on customer accounts is carried forward to the new fiscal year. The posting periods of the old fiscal year are then blocked and the special periods for closing entries are opened. After this, the following closing operations are carried out:
Balance confirmations are sent and evaluated
Foreign currency documents are valuated
Value adjustment are varied out for overdue receivables
Accounts receivable are reclassified in short and long-term categories for financial statement
The special periods can then be closed.
Balance confirmations, foreign currency valuations, and regroupings are carried out in the same way as in the accounts payable.
The following options are available for creating value adjustments for receivables:
You enter individual value adjustments (IVA) as special G/L transaction E.
You use program SAPF107 (”Additional valuations”) to carry out a flat-rate individual value adjustment
Once you have determined the amount of the value adjustment, you adjust the flat-rate value by making a manual G/L account posting. The posting record is: Expense from flat-rate value adjustment to value adjustment

42. Value Adjustments Option for value adjustment of receivables
The following options are available for creating value adjustments for receivables:
You enter individual value adjustments (IVA) as special G/L transaction E.
You use program SAPF107 (”Additional valuations”) to carry out a flat-rate individual value adjustment
Once you have determined the amount of the value adjustment, you adjust the flat-rate value by making a manual G/L account posting. The posting record is: Expense from flat-rate value adjustment to value adjustment

43. Assets
Closing in fixed assets (FI-AA) can roughly be divided into two types of work.
Legal requirements (mandates required by the government)
Technical and organizational requirements (Preparatory stepss that are necessary technically required or needed to support the accounting organization)
With the fiscal year (FY) change program, the new year is opened in FI-AA. This allows you to post to assets in the new fiscal year. The FI-AA program to open a new fiscal year has nothing to do with the opening/closing of FI periods (in general ledger accounting).
In contrast, the year-end closing program checks the following issues:
Asset value postings: Depreciation values and periodically posted APC values (Acquisitions and production costs) must be posted completely
Asset master record information: Asset master records must not contain any errors or be incomplete.
If the year-end closing program finds no errors, it updates the last closed fiscal year for each depreciation area and blocks posting in the asset accounting for the closed fiscal year.

44. Depreciation run
Posts (in one run) the depreciation of all depreciation areas to general ledger accounting.
The depreciation posting run posts (in one run) the depreciation of all depreciation areas to general ledger accounting.
All types of depreciation (normal depreciation, special depreciation, and unplanned depreciation) are calculated and initially kept in the form of planed values in the Fixed assets application. After the periodically started depreciation posting run, depreciation values are also displayed in the G/L accounts and the financial statement.
Beside the postings to the corresponding depreciation accounts in general ledger accounting, it is possible to post depreciation values to management Accounting (controlling or CO) objects, for example, cost centers, internal orders, or work breakdown structure (WBS) elements assigned to the asset master record. Typically the values of depreciation area (Cost accounting) are transferred to CO.

45. General Ledger
At the start of the new fiscal year, the balance carry forward program is run. This then ensures that the balances of the G/L accounts are carried forward to the new fiscal year.
The posting periods of the old fiscal year are then blocked and special periods for closing entries are opened. Foreign currency documents are the evaluated, accrual/deferral documents are posted and GR/IR clearing accounts are analyzed. Following that, the respective accounts are updated.
The special periods can be closed.
For documentation purpose, the balance audit trail is made and financial statements are created. Additional reports are prepared for legal reporting purposes.

46. General ledger - Accruals
Example of insurance invoice (120,-) for an asset that need to be spread for all months
Revenue and expenses, which are posted in a specific posting period, often originate in a different period. For this reason, such revenues and expenses must be accrued; that is, they must be divided over the periods in which they are incurred.
Accruals: The expenses or revenue belongs to the current period, from an accounting point of view, but is not posted until a later period, because the invoice has not been sent or received.
Deferrals: The expense or revenue was posted in the current period (invoice sent/received), but the actual business transaction, or part of it, is actually incurred in a future period.
Invoice is received: the invoice for 120 EUR is received in accounts payable in the first periods and is posted there. The posting record is: Expense account to vendor account
Amount is transferred from the expense account to the invoice deferral account: Using an opening posting, the entire amount is transferred from expense account to an account for invoice deferral items. The posting record is: Prepayment and accrued income to expense account
Amount posted back to the expense account: During the period-end closing, part of the amount gets posted back to the expense account, that is, prepayments and accrued income get prorated. The posting record is: Expense account to prepayments and accrued income
Residual amount is posted to an expense account: If the contract is terminated prematurely, the entire residual amount is posted to an expense account. The posting record is: Expense account to prepayments and accrued income

47. GR/IR (Goods received/Invoice received)
Asset balance
Billed goods, invoiced but not received
Liability balance
Delivered goods, received but not invoiced
The clearing account for goods received and invoice received (GR/IR) contains a list of all goods and invoices received. If, at the end of a period, the balance of this account is not zero, one of the following reasons could apply:
Billed Goods: Goods were billed but have not yet been delivered
Delivered goods: Goods were delivered but have not yet been invoiced
When the books are closed, the balances need to be listed as either asset or a liability in the finacial statement. Assets and liabilities can briefly be described in the following way:
Asset balance: Listed in the account for goods that have been billed but not yet delivered
Liability balance: Listed in the account for goods that have been delivered but not yet invoiced
The GR/IR is analysed using a program that enables balances to be posted either as an asset or as liability. The postings are reversed on the first day of the next period, since reposting during daily business would lead to erroneous figures.

48. Summary
Any questions?
FEEDBACK really needed !

49. SAP trainings – Autumn 2016 09/2016: 22.9.
SAP Clinic – What the F*** is SAP?
Basic overview of ERP and SAP as application with focus upon business process testing
09/2016: 22.9.
Introduction to Solution Manager
An introduction to Solution manager testing functionality
10/2016: 25.11
SAP “technical” introduction
Useful ”technical” information to help you survive a SAP testing project. Information of Idoc, authorization, batchjobs, SPRO (configuration), ABAP, BAPI
10/2016:
Easy Landing to SAP FICO
Smooth and simple entry to SAP FICO process areas and master data,  through an overview to Order-to-Cash and Procurement-to-Pay processes.
09/2016:
Solution Manager – hands on training
Hands on training of SAP Solution Manager testing functions
11/2016
SAP ECC E2E business processes
Get a picture of SAP navigation through Order-to-Cash and Procurement-to-Pay processes in SAP.
12/2016: 8.12.
Solution Manager 7.2
What will change when SAP Solution Manager face lift version is launched during 2017
12/2016
SAP ®egression testing
What is needed for successful ERP regression testing and what are the testing tools available. Sharing of customer experience.
11/2016:

50. SAP Training – other forums
SAP Learning Hub on SAPin ylläpitämä pilvipohjainen oppimisalusta, jonka kautta käyttäjät pääsevät käsiksi kaikkiin SAP Koulutuksen koulutusmateriaaleihin, virtuaalikursseihin ja muihin itseopiskelumateriaaleihin (5100+ kappaletta) 24/7, 12 kuukauden ajan.
Tavoite: SAP Finnish User Group ry SAP Finug) on itsenäinen ja riippumaton käyttäjäyhdistys, jonka tavoitteena on ylläpitää ja kehittää yhteistyötä SAP:n sovelluksia käyttävien organisaatioiden välillä sekä toimia keskustelukanavana niiden ja SAP:n välillä.
Toiminta: Yhdistys toteuttaa tavoitettaan, järjestämällä jäsenilleen erilaisia seminaari-, ajankohtais- ja kokemuksienvaihto -tilaisuuksia sekä työryhmätoimintaa. Tapahtumista tiedotetaan yhdistyksen omilla nettisivuilla sekä sähköpostitse jäsenille. Yhdistys toimii noudattaen verohallinnon ohjeistusta
Interested ?
Contact: Monica Saukkonen

51. Sources SAP learning hub course material:
AC010: Business Processes in Financial Accounting
AC205: Financial Closing