FI/CO Configuration Series (Part I)
This will be a Configuration step by step series, for all users new to SAP configuration. We will try to cover the most basic and essential configuration steps to be done within the Financial Accounting Module. So if you’re struggling your way to learn SAP’s Financial Accounting configuration stay tuned for this series.
Some advices on how to engage and fully take advance this series:
- Be Patient. The Financial Accounting Module requires a lot of patience and dedication, you are dealing with maybe the most complicated and delicate module in SAP so it will take time and practice but if you are reading this post your on the right track.
- Stay Tuned for the whole series. If you start with it, you MUST finish it, I will update this regularly so don’t leave any concepts behind until you have them very clear.
- Try to do things Step by Step. Practice on Sandbox or IDES Client. If you don’t have any just contact me over the form and maybe I can help you with that.
- If you would like to ADD something, or have any questions just leave it on the comments. This post will be updated with your comments.
- If you don’t know what is SAP, Financial Accounting you may want to read first our Introduction series.
Let’s start with the Basic’s.
SAP provides a set of tools to facilitate the process of customizing the system to meet business requirements.
On this First serie you will see:
● A general overview of the SAP system’s customizing tools.
● Definition of the Implementation Guide Structure (IMG).
● General Highlight of the major areas of the Implementation Guide related to the FI/CO modules.
When we mention Configuration remember that is the act of maintaining settings in the system to support customized business requirements. (Customizing) and Application Functionality refers to the performance of the ongoing processes required to record and report business activity. (Usage).
When you are working on the Configuration & Implementation of SAP, each module especially Financial Accounting and Controlling modules must be adapted from the SAP standard application to the company’s processes and structure.
For doing this SAP provides the following Customizing Components:
- The Implementation Guide (IMG) provides the sequence of project steps, the IMG is used as an implementation guide to customize the R/3 system to meet customer’s requirement that explain all steps required to implement each application and all activities for configuring R/3 system. Implementation guide is arranged by hierarchy and by application area. For each module in the IMG, status information can be stored then evaluated by carrying out a Project Analysis.
- Business Workflow helps bring together people, processes and technology by providing a flow of material, information and knowledge between them.
- Business Navigator provides a flow chart view of the various applications within SAP.
- Basic Functions provide the first steps required when installing SAP including recommendations for creating clients, users and authorizations.
- The Procedure Model provides a basic plan for an implementation project. It briefly describes the different phases of the implementation of the SAP system for all applications. – continued
The SAP ERP Procedure Model is structured at three levels:
- Work Package
- Project Activity
The use of these levels will vary depending on the part that they will play in a client’s implementation project. Work Packages serve as structure elements for preliminary planning and controlling. In addition, Work Packages can be used to:
– Maintain project status
– Review implementation recommendations
– Create project documentation
- Also on the Procedure Model there are 4 phases:
– Organizational and conceptual design
– Detailed design and system set-up
– Preparations for going live
– Productive operation
General Settings in Financial Accounting Module
The General Settings contain the highest level of information in the system. The General Settings area of the IMG includes system delivered, general, application independent parameters such as:
- Calendar Table: Non-Client-specific table that delivers and maintains all definitions for public holidays and public holiday rules as well as standard factory workday assignments. Changes affect all Clients.
- Unit of Measurement Table: Units of Measurement are necessary for calculation screen displays that involve quantities and physical units as well as for internal conversions. Units of Measurement are stored centrally in the system for all applications. External display specifications are maintained for each Unit of Measurement Language dependently.
- Country Table: The SAP-delivered Country Table contains country-specific data (e.g, Name, Language, ISO Code, Tax Procedure) and parameters such as Postal Code Format, Bank Data Format, and Date Format. Verification of the data format is performed automatically by the system as transactions are entered. Countries can be added as necessary, but should conform to the International Standards Organization (ISO) naming conventions.
- Currency and Exchange Rate Tables:
– Currencies are identified in the Currency Table by the three character ISO Code along with a name / description and number of decimal places required after the decimal point.
– The Exchange Rate Table allows entry of actual Exchange Rates, Validity Periods, Conversion Factors, and Exchange Rate Types
All the above General Settings are usually defined by the Financial Accounting team.
So this will be all for our first series of the FI/CO configuration. Stay tuned this series will be updated daily. If you have any questions just leave your comment below.