Scenario
In the SAP system, the accounting component is divided into the areas of Financial Accounting, Controlling, and Funds Management on the basis of its business functions.
The Financial Accounting (FI) application component fulfills all the international requirements that must be met by the financial accounting department of an organization. It provides the following features:
It facilitates the management and representation of all accounting data. All business transactions are recorded according to the document principle, which provides an unbroken audit trail from the financial statements to the individual documents.
Open and integrated data flow with automatic, real-time updates of data within other components. Postings made in the subledgers generate a corresponding posting in the general ledger.
Preparation of operational information to assist strategic decision-making within the organization.
Controlling provides you with information for management decision-making. It facilitates coordination, monitoring, and optimization of all processes in an organization. This involves recording both the consumption of production factors and the services provided by an organization. As well as documenting actual events, the main task of controlling is planning. You can determine variances by comparing actual data with plan data. These variance calculations enable you to control business flows. Income statements such as contribution margin accounting are used to control the cost efficiency of individual areas of an organization, as well as the entire organization.
The Funds Management functions support you in creating and executing budgets. Funds Management budgets all relevant revenues and expenditures for individual areas of responsibility, and controls future funds movements according to a distributed budget. It also prevents the exceeding of a budget. You can adapt the budget to changes in conditions by entering releases, supplements, returns, and transfers.
