Financial Accoounting Module 6

Financial Accounting (FI):

The SAP module designed to collect transactional data that provides a foundation for preparing the standard portfolio of reports.

Client:

An independent environment in the system.

Company Code:

The smallest organizational unit where a legal set of books can be maintained.

Chart of Accounts:

A classification scheme consisting of a group of general ledger (G/L) accounts used by one or more company codes.

Credit Control Area:

An organizational entity that grants and monitors a credit limit for customers.

Business Area:

Represents a separate area of operations or responsibilities within an organization to which value changes recorded in Financial Accounting can be allocated.

General Ledger (G/L) Accounts:

A master data storage area created by the unique combination of Company Code and Chart of Account.

Accounts Receivable Sub-ledger (FI-AR):

Information concerning customers who purchase the enterprise’s goods and services, such as sales and payments made.

Accounts Payable Sub-ledger (FI-AP):

Information concerning vendors from whom the enterprise purchases goods and services, such as purchases and payments.

Balance Sheet:

The presentation of an organization’s assets, liabilities, and equity at a point in time.

Income Statement:

Presents an organization’s revenues and expenses for a period, such as monthly, quarterly, or annually.

Statement of Cashflows:

The associated changes, both inflows and outflows, that have occurred in cash over a given period.

Audit Trails:

These allow an auditor to begin with an account balance on a financial statement and trace through the accounting records up to the transactions that support the account balance

SAP Document Principle:

Provides a solid and important framework for a strong internal control system, a law requirement for companies that operate in most countries