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cleanFiles/bookmap_E2E_Business_Processes_for_the_Intelligent_en-US_learning-sap-com_lsc-prod.zip (MMCP-DROPZONE) - 2024-12-11T09:29:08.000Z

Identifying the Areas of Financial and Management Accounting

<div id="content"><p tabindex="0">As you just learned, Accounting is divided into two major areas: Financial Accounting (FI) and Management Accounting (CO). Let’s start this lesson with Financial Accounting.</p><p tabindex="0"></p><div tabindex="0"><h4>Financial Accounting (FI):</h4></div><p tabindex="0">Financial Accounting itself consists of different areas: The General Ledger (G/L) and various subledgers.</p><p tabindex="0"></p><p tabindex="0">Watch the following video to learn more about Financial Accounting.</p><div class="kalturaVideoLessonWrapper"><div aria-label="" class="kalturaVideoLessonContainer" data-testid="video" id="1_yva9v8n3"></div></div><div class="parentsection"><div class="section"><div tabindex="0"><h3>Test Your Knowledge&nbsp;</h3></div><p tabindex="0">Let’s test your newly acquired knowledge on Financial Accounting. Andy could use a helping hand.</p><div class="iframe-wrapper"><iframe aria-label="" src="/service/media/U3_L2_001_Multiple_Choice/story.html" class="storyline_3"></iframe></div></div></div></div>

Financial Accounting

<div id="content"><p tabindex="0">Alright, it seems that you are now ready to focus on Management Accounting (CO).</p><p tabindex="0"></p><div tabindex="0"><h4>Management Accounting (CO)</h4></div><p tabindex="0">CO contains all the functions necessary for controlling cost and revenue effectively. It covers all aspects of management controlling and includes many tools for compiling information for Bike Company’s management.</p><p tabindex="0">Controlling processes data, which comes from other SAP solutions. The following video introduces the different areas of Controlling and its basic value flow with Financial Accounting.</p><p tabindex="0"></p><p tabindex="0">Watch the following video to get an overview of the areas in CO.</p><div class="kalturaVideoLessonWrapper"><div aria-label="" class="kalturaVideoLessonContainer" data-testid="video" id="1_jtdfedfg"></div></div><div class="parentsection"><div class="section"><div tabindex="0"><h3>Test Your Knowledge&nbsp;</h3></div><p tabindex="0">Let’s test your newly acquired knowledge on Management Accounting. Andy has a question for you, see if you can advise him.</p><div class="iframe-wrapper"><iframe aria-label="" src="/service/media/U3_L2_002_Multiple_Choice/story.html" class="storyline_3"></iframe></div></div></div></div>

Management Accounting

Discovering End-to-End Business Processes for the Intelligent Enterprise

The main purpose of General Ledger Accounting is to fully represent external accounting and the accounts involved in it, recording all business transactions and SAP S/4HANA that is fully integrated with all other operational areas of the bike company, ensures that the accounting data is always complete and accurate. For example a billing document in the sales process results in an automatic increase in receivables in the balance sheet and our revenue posting. Accounts Payable records, accounting data such as incoming invoices or outgoing payments for each individual supplier. Accounts Payable focuses on the management of accounting transactions for individual suppliers. Posting on a supplier account updates the general ledger at the same time. For example, posting a supplier invoice increases the liabilities G/L account and the Balance Sheet of the Bike Company. Accounts Receivable monitors and clears, a company's customer receivables. Similar to Accounts Payable, this subledger focuses on the management of accounting transactions for individual customers. Each customer account is linked to General Ledger Accounting. So, for example, if we receive an incoming payment from a customer, the receivables on their customer account and the total receivables in the General Ledger and the balance sheet are reduced. Asset accounting is used to map the complete financial life cycle of fixed assets, such as buildings, computers, and industrial machines. Asset accounting records detailed information for transactions involving fixed assets. Typical transactions and asset accounting are asset acquisitions, transfers, and asset retirement postings. As with customer and supplier accounts, these transactions are posted to the individual asset as well as the General Ledger Account at the same time through the single transaction.

Management Accounting Overview

In cost element accounting costs and revenues are separated according to objective criteria. Material cost, personnel costs, depreciation costs, and so on. Financial accounting is a primary source of data for management accounting. Most expense or revenue postings in the general ledger result in a cost or revenue posting. In management accounting, these costs or revenues are considered primary costs or revenues. There are also cost flows that originate directly from controlling e.g. facility management provides a service for production or administration. These type of internal costs are considered secondary costs and use special GL accounts called secondary cost accounts. Various types of objects can be cost objects in SAP, e.g. a. Sales order to produce ten bicycles, or a production order for the make-to-stock production of certain bike parts can be cost objects. Costs resulting from these activities can be assigned directly to these accounts. Assignment objects, cost object controlling in product cost, controlling records, and monitors all costs, allowing you to compare it with planned costs. So you can identify where variants arise and to implement corrective measures. Planned costs, or the outcome of product cost planning. This area in product cost controlling calculates the estimated production costs and thus provides a minimum selling price for breaking even. Overhead cost controlling gathers all costs that can be assigned directly to a cost object, e.g. the marketing cost for an advertising campaign. Using a variety of allocations methods. These overhead costs are transferred to product cost controlling, giving a more complete view of the actual costs of a product. Margin analysis. It is important to know what the bike company earns by selling its products. Margin analysis collects all costs and revenues incurred at analyzes the operating results of the company focusing on a market segment view margin analysis, e.g. provides the answer to the following question. What operating profit did we generate with reseller a in the region, North America with our bike parts last quarter.

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