1. Financial Accounting (FI)
ECC 6.0
January 2008
Unit 9
Financial Accounting (FI)
- Transactions -
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2. Business Process Integration
ECC 6.0
January 2008
Business Process Integration FI
Transactions
January 2008
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3. ECC 6.0
January 2008
Transaction Data
Includes internal and external exchanges that describe business activities
Unlike master data, aggregate transactional data is dynamic – each transaction is unique
January 2008
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4. Financial Accounting (FI)
ECC 6.0
Financial Accounting (FI)
January 2008
R/3 FI
Financial
Accounting CO
Controlling PS
Project
System WF
Workflow IS
Industry
Solutions MM
Materials
Mgmt. HR
Human
Resources SD
Sales and
Distribution PP
Production
Planning QM
Quality PM
Plant Maintenance SM
Service
Client / Server
Integrated Business
Solution EC
Enterprise AM
Fixed Assets
Green ones (and blue): Logistics
Start out with sales and distribution
Yellow HR was added later in SAP’s life (1990)
Red: Tracking side of house. (Financials)
Purple:Workflow is the least understood by faculty and students
Allow the movement of information in the enterprise to the people who need it.
(e.g. Credit limit – s, updates)
Industry Solutions: Each install is tracked by SAP and the configuration is monitored by industry. This way SAP knows the whole set of answer of how industries works with their best business practices.
January 2008
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5. Unit 9 – Overview Document Principles Document Types Posting Keys
ECC 6.0
Unit 9 – Overview
January 2008
Document Principles
Document Types
Posting Keys
January 2008
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© SAP AG and The Rushmore Group, LLC 2008

6. ECC 6.0
January 2008
Document Principles
Each completed accounting transaction writes data to the database and creates a unique electronic document
Each document contains information such as:
Responsible person
Date and time of the transaction
Commercial content including company codes
Definition
The result of a posting in Financial Accounting. There are two types of documents: Original documents and processing documents.
Examples of original documents:
Receipts
Invoices
Checks
Bank statements
Examples of processing documents:
Accounting documents
Sample documents
Recurring entry documents
The accounting document represents the original document in the system. The other processing documents can be used to simplify document entry. The document remains as a connecting unit in the system until it is archived.
Use
You can only check whether postings are correct in the compact journal and general ledger by means of documents. Every posting must therefore have a document.
Documents are the link between the business transaction and the posting in accounting.
Only complete documents can be posted. A document is complete when its debit and credit items balance to zero. You must enter the minimum account assignments designated by the system: For example, document date, posting date, document type, posting key, account number, and amount. Data must also be entered in all other fields that were defined as required fields when making system settings.
January 2008
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7. Document Principles – (continued)
ECC 6.0
January 2008
Document Principles – (continued)
An accounting document captures the entire transaction in a manner that facilitates recall for reporting purposes
It remains as a complete unit in the system until archived
Once created, a document can not be deleted from the database
Data is of no value unless you can generate report from them.
They can only be archived if complete
All line items cleared
January 2008
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8. Document Principles – (continued)
ECC 6.0
January 2008
Document Principles – (continued)
The SAP R/3 document principle provides a solid framework for a strong internal control system
Audit trails allow an accountant to begin with an account balance on a financial statement and trace through the accounting records to the transactions that support the account balance or to trace individual transactions to the effected account balance(s) on a financial statement
Once you create a document in financial accounting you cannot delete it.
You must reverse it.
Not all transactions are reversible
January 2008
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9. Document Principles – (continued)
ECC 6.0
January 2008
Document Principles – (continued)
Each posted accounting document has a header
This is the header screen you get to see.
The part of a document that contains information valid for the whole document, for example, document date and number. It also contains controlling information such as the document type.
If you don’t want a field to show up, suppress it.
January 2008
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10. Document Principles – (continued)
ECC 6.0
January 2008
Document Principles – (continued)
Each posted accounting document has at least two lines (e.g., debit and credit)
You have to have at least 2-line items : Double entry system
You can have as many as you want: Debits have to equal credits
This transaction is using master data. We did not enter the G/L account manually
January 2008
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11. Document Types A way to categorize different transactions
ECC 6.0
January 2008
Document Types
A way to categorize different transactions
Many different document types are supplied in the system
Document types are associated with number ranges
All documents of the same document type are stored in the system by document number
Determine the type of account that can be posted to
A key that is used to classify accounting documents and distinguish between business transactions to be posted. The document type is entered in the document header and applies to the whole document.
Use
The document type has the following functions:
Differentiating between business transactions. The document type tells you instantly what sort of business transaction is in question. This is useful, for example, when displaying line items for an account.
Controlling the posting to account types (vendor, customer, or G/L accounts). The document type determines which account types that particular document can be posted to.
Assigning document numbers. A number range is assigned to every document type. The numbers for the documents you create are taken from this number range. The original documents from one number range should be stored together. In this way, the document type controls document storage.
If you don’t like the document type out there… create a new one
Never change the defaults. You cannot go back
January 2008
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12. Document Types – (continued)
ECC 6.0
January 2008
Document Types – (continued)
SA – General ledger account documents
DR – Customer invoices
DG – Customer credit memos
DZ – Customer payments
KR – Vendor invoices
KG – Vendor credit memos
KZ – Vendor payments
KN – Vendor net invoices and credit memos
Document types have already been defined in the standard system. The most important document types are these.
January 2008
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© SAP AG and The Rushmore Group, LLC 2008

13. ECC 6.0
January 2008
Posting Keys
Determine whether the item to be posted is a debit or a credit
Determine the type of account that can be posted
Two-character numerical key that controls the entry of line items. The posting key determines:
Account type
Debit/credit posting
Layout of entry screens Use
When you enter a posting, enter a posting key for each item. This key determines how the item is posted. Posting keys are defined at client level and therefore apply to all company codes. The posting key determines:
The data you can enter in the line item
How data you post is processed
How the system updates the data you enter
Posting keys are differentiated by customer, vendor and G/L accounts. Apart from the General Ledger Accounting (FI-GL) and Accounts Receivable and Payable (FI-AR/AP) components, there are also posting keys for asset and material accounts
January 2008
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© SAP AG and The Rushmore Group, LLC 2008

14. Posting Keys – (continued)
ECC 6.0
Posting Keys – (continued)
January 2008
The posting key (PK) has a control function that pertains to the document line items.
It determines the following:
Account type for posting the line item
Debit or credit posting of line items
Field status for additional information
Keeps track of line items and where these line items are posted to.
The document type specifies which account types you can post to. The posting key specifies which account types you can post to. A posting key can only be entered for an account type which is permitted for that document type.
January 2008
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© SAP AG and The Rushmore Group, LLC 2008

15. Posting Keys – (continued)
ECC 6.0
January 2008
Posting Keys – (continued)
General Ledger 40 50
Vendors 2 3
Common
Posting
Keys
Assets 70 75
Material 89 99
Customers 1
General Ledger
40 Debit entry Debit G/L account
Credit entry Credit G/L account
Assets
70 Debit asset Debit Asset
75 Credit asset Credit Asset
Material
89 Stock inwrd movement Debit Material
Stock outwd movement Credit Material
Vendors
02 Reverse credit memo Debit Customer
Bank charges Debit Customer
Customers
00 Act assignment model
01 Invoice Debit Customer
January 2008
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© SAP AG and The Rushmore Group, LLC 2008

16. Unit 9 – Exercises Review Document Types
ECC 6.0
Unit 9 – Exercises
January 2008
Review Document Types
Post Initial Cash Investment by Owners
Post Purchase of Operating Supplies
Display and Review General Ledger Account Balances and Individual Line Items
January 2008
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© SAP AG and The Rushmore Group, LLC 2008