Encyclopedia Archive - BPX


Value-added tax. The main principle for its calculation is to taxation the final customer of goods or services.

WBS (work breakdown structure)

It is a part of a tree-structured decomposition of a profect in project management.

WBS represents a single task or a group of tasks in a project. It enables planning and allocation of costs and revenues of particular parts of a project.

Value field

Value fields are required in costing-based Profitability Analisys where cost of sales are included. Value fields provide information about quantities and values (in different currencies) that are analyzed in CO-PA reports. They represent a profit and loss structure.

Transaction Manager

It is the instrument dedicated to managing, reporting and Mark-to-Market valuations of financial instruments.

Text Determination

Determining which texts are to be shown in the various documents, if texts should be copied to other documents in the process, how documents should be copied and whether they will be printed.

Tax / tax determination

On the sales order and invoice there is a possibility to define tax for sold material. SAP automatically calculates the tax based on the tax classification of the customer, the tax classification of the material, the country of origin and country of destination.


SWIFT code also know as a Bank Identifier Codes (BIC). It’s a international identification code, consisting of 8 or 11 characters which identifies particular bank or financial institution.  These codes are used when transferring money between banks, particularly for international wire transfers.

Statistical postings

Additional postings used for internal analysis or management accounting reporting.

Statistical key figure (SKF)

SKFs are used as the basis for cost allocation. Statistical key figure can represent  square metrage,  man-hour, the amount of employees, etc.

Standard cost estimate

It enables analisys and determination of a standard price for materials in the period. Once released, standard cost estimate cannot be changed in the current periond. Standard price is not influenced by any  price fluctuations.

Shipping point

An organizational unit in the system, which is responsible for the type of transport, the required materials for shipping. From this place we can phisically ship the item. Examplary Shipping point could can be factory or warehouse.


The Single Euro Payments Area within individuals and businesses can make and receive card and electronic payments in euros, across Europe, simply, cheaply and efficiently, regardless of their location.


Securities are the most complicated financial instrument covered by SAP Treasury solution. Issued by the countries or corporates, securities are an alternative funding source. The SAP System supports handling of many types of securities like: shares, warrants, bonds (zero-, fixed- and variable coupon).

Secondary cost element

Defined in SAP CO only to identify internal costs of the entity. It enables monitoring of costs incurred between different objects in SAP CO. Secondary cost elements do not have any corresponding general ledger accounts in SAP FI.

Schedule line / scheduling

In the sales documents data are set on three levels: the header, item and schedule line. Schedule line level is the most detailed, providing information on the product is available on specific dates . The date on which the system will confirm us by controlling the availability of goods is determined by scheduling forward or backward.


SAP is an accounting program and it enables the tax recording. Not only in the finance module, but also in SD and MM. After posting taxes it is possible to download the report from the system and send it to the financial institution, like Tax Agency.

SAP Treasury Management

SAP Treasury and Risk Management is an integrated solution which is used for managing financial instruments of an enterprise. The key elements of this solution are:

  • Market Risk Analyzer,
  • Credit Risk Analyzer,
  • Transaction Manager,
  • Hedge Management,
  • Portfolio Analyzer.

These tools mechanize and support the enterprise in respect of financial instruments and portfolio management, in connection with complete optimalization and financial risk management.

SAP In House Cash

SAP In-House Cash is used to centrally process the internal and external payments and to reduce transaction costs. SAP In-House Cash allows internal and external centralized payments. Central processing of payments allows you to reduce the number of bank accounts held by the company’s subsidiaries. It also provides savings on cross-border payments costs of as well as on currency spreads. Central processing takes place in dedicated units, serving as In-House banks that offer vast account management options like charges, interest calculation and internal bank statements.

SAP Dispute Management

SAP Dispute management helps increase efficiency of Customer complaints resolution and dispute case processing. SAP DM contains functions for processing receivables-related dispute cases. The tool allows to control each dispute case till the end of the process.

SAP Credit Management

SAP Credit Management is dedicated to reduce credit risk through a centralized Customer credit policy.Credit limit data (internal, from SAP and external, provided by scoring agencies) allows manual or automatic setting of Customer credibility and limit amounts.

SAP Cash Management

SAP Cash Management allows cash flow forecasting and monitoring. With data sources such as SAP Finance (bank statements, payment program, GL accounts), sales, logistics and material management it is a powerful tool for high level and micro perspective reporting.

SAP Biller Direct

SAP Biller Direct provides web based Customer service portal. Customers may execute online payments, check account information, list outstanding items like Invoices, Credits and Payments or even enter online queries and complaints. It also offers automatic notifications via email or SMS.

SAP Bank Communication Management

The SAP Bank Communication Management module allows monitoring of the payment process from the payment initiation in SAP to the results of bank processing. The standard feature of SAP BCM is to create the various acceptance path for a payment process that is realized in SAP system. In addition, SAP BCM enables to group payments by the different features and predefined criteria – so that the amount of payments and costs associated with their settlement could be as small as possible.

Sales area

Sales area defines the structure of the company in SD part. Sales area consists of three parts: sales organization, distribution channel and division.


The route, which the material is to be transported from the Shipping point to the Ship-To Party.

Residual item

Payment, which is formed when the compensation is made and remains part of the payment.

Reference document

Reference Document is a document, which we refer to when creating a new or another document in the process.

Real-time integration of CO-FI

Postings created in FI on the basis of allocations in CO. If an allocation in CO leads to a change that should be reflected in G/L account (change any of the organizational structure such as: Profit Center, Functional Area, Business Area etc.) the reconcilation between CO and FI takes place automatically.

Real postings

Real postings originate from financial postings on real SAP CO objects. Real values can be settled to  a G/L account or other SAP CO objects.

Promotion / sales deal

By using promotion and sales campaigns we can define additional pricing conditions for customers. In promotions and sales campaigns we can define the validity period, the customer, material and price conditions to which they relate. Defined promotions and sales campaigns allow the system to automatically reduce the price for customer including defined criteria.

Profitability segment

The combination of CO-PA characteristics that provides information about products, clients, sales etc.

Profit Center

It is an organizational unit representing an area of responsibility for costs and profits in an organization.

Primary cost element

Indicates the origin of external costs incurred by the entity. Primary cost element corresponds directly to a general ledger account. It is a point of integration between SAP FI and SAP CO modules.

Pricing procedure

Pricing procedure contains information about the possible types of pricing conditions, to what extent pricing able to be processed manually or which method SAP should use to calculate percentage surcharges and discounts.

Pricing condition records

Every price condiction (e.g. price, discount, surcharge, taxes, etc.) is separately defined and it contains all the necessary details.


The pricing is a broad concept which includes configuration and any otherarrangements that define the different types of pricing conditions (net price, gross price, discounts, surcharges, taxes, cost of production, profit margin etc.).