Availability check can be defined in various documents, e.g. at the level of the sales order or delivery. Availibility check can include inventory availability, receipts, issues, production planning and inventory replenishment time. Availability control takes place at the level of the plant, but it can also include warehouses level.
Automatic payment program allows you to automatically generate invoices transfers cost for suppliers.
A process executed at the end of a period, used to allocate primary and secondary costs to SAP CO objects. Senders are debited with a secondary cost element. Costs allocated with an assessment cycle cannot be settled with a distribution cycle. Assessment cycle uses less system data due to the fact that the information sent across between senders and receivers of the cycle is less detailed.
Activity type represents activities performed within a company by cost centers.
Activity allocation is a process of allocating internal business services cost with a usage of an activity type.
SAP FI area, where there is a record of economic events arising from the relationship with customers.
SAP FI area, where there is a record of economic events arising from the relationship with vendors.
After saving the sales invoice, SAP creates a background billing document in FI automatically.
A list of all materials with their corresponding amount, which is needed in the process as inseparable whole. All those materials are the structure of finish good.
The basic functionality provided by this module are:
In SAP SD you can define the customer hierarchy levels and assign them to individual customers. Customer hierarchy can be used, e.g. during setting prices, because the price can be set for different levels of the hierarchy or for specific hierarchy node and then system will automatically apply right price to customers who are assigned to that hierarchy. In this case, there is no need to enter a price for every customer individually.
Data in sales documents are taken from the data set per customer-material. If such entry does not exist then the data are taken from the customer master data , and if there is no entry then the data are taken from the material master data. Sometimes, business partner refers to a specific material with his own name (rather than technical name) in purchase order. Customer-Material Info Record enables You to map customer material name with SAP material code.
Functionality of SAP CRA is focused on analysis and control of credit risks linked directly to your counterparties.The main control tools are the transactional limits. These limits enable you to monitor risk exposure on different risk factors linked to your counterparties, legal entities or even certain portfolios and internal traders.
Credit Memo Request is a document used to create Credit Memo. Before the credit memo is created in the system, the Credit Memo Request should be created (with ref. to the sales order). Credit Memo Request is a place where we can define the values before and after correction, enter the reason for the request, the data to be corrected and then save the document. Credit Memo Request does not generate any account postings and it can be used to verify the Credit Memo Request before Credit Memo is created. As long as the person responsible does not approve the Credit Memo Request for further processing, it can be blocked for billing. Only after unblocking Credit Memo Request we have an ability to create Credit Memo with account postings.
Credit Management allows to impose a credit limit up to which the business partners can place orders. It is able to define what consequences a negative check should have (e.g. block further orders or block partner account).
Indicates the origin of incurred costs. There are two types of costs elements: primary and secondary.
Tree structure representing all cost centers belonging to a controlling area. It is based on the company’s structure.
Indicates the origin of incurred costs. It is used to collect costs at different levels of organisational structure.
Copying Control allows you to create different types of documents (orders, deliveries, invoices) in reference to the other. Setting this configuration are useful for SAP users who do not need to repeat copied parameters to target document anymore.
Controlling area is an organizational unit separated from operating concern. It may contain one or more company codes. All company codes assigned to the same controlling area must have the same Chart of Accounts.
The smallest organizational unit for which you can create a separate accounting principles. Defined at least one entity in the SAP system is mandatory.
List of all general ledger accounts used in the system. Each account has a number, descripption, information about type of account and field status variant, that determines the information supplemented while posting on the GL account.
Criteria used in Profitability Analisys (CO-PA) in analysis of the company’s operating results. The combination of the characteristics values is called a Profitability Segment that provides information about products, clients, sales etc. Characteristics are essential in entity’s profitability analysis.
A special type of document that is used to enter into the SAP system different kinds of information. A separate type of document is created for suppliers, customers, materials, plant and equipment, command postings to the general ledger accounts.
Document flow contains information about the created documents related to each other within the executed process. From the document flow, we are able to see what has been done in the process and preview the details of displaying documents directly from the document flow.
The main part of the document. It specifies the date of issue of the document, posting date, document type, VAT, supplier or recipient, terms of payment, form of payment
A process executed at the end of a period used to allocate primary costs to SAP CO objects. Senders are debited with a primary cost element.
Partners in SAP SD correspond to different types of customers. In SAP they are represented by group account. Roles of partner are assigned to specific group accounts (eg. sold-to party, payer, bill-to party, goods recipient). Depending on system configuration and customer master data, while creating sales order in the sales process, system can automatically determine the appropriate roles we partner. Often in the sales process often another customer is responsible for the order to another location and another customer is invoiced. Thanks to the determination of a partner in the system, we are able to reflect these relationships in a simple way.
Derivatives are a group of financial instruments that are mostly used for hedging purposes. Derivatives supported by SAP may cover currency and interest rate risk linked to external risk exposures. SAP allows processing a wide spectrum of derivatives – starting with very standard and popular Swaps (IRS, CIRS), through CAPs and FLOORs up to many different options (vanilla, barrier, Asian) and option strategies.
Depreciation key defines the amount of depreciation.It is assigned to each asset in its basic data. This enables automatic calculation of the depreciation of each asset.
SAP may help you with comprehensive processing of debt instruments that allow a company to raise extra capital from the market. By offering a good price to the market a company has an outstanding opportunity to get some money from another source than the banks. SAP functionality fully supports the process of security issuance.
By creating list of excluded materials and assigning it to a specific customer, we can prevent ordering those materials by this customer.
The transaction, which allows the posting of SAP entire document using only one screen.
Elixir is a standard system for interbank clearings in Poland allowing to make payments between all banks. Net settlement system is operated by the Polish clearing house KIR and is used for standard payments, all ZUS (social insurance) and tax payments.
SAP system provides the ability to implement discount in nature, which means that after configuration, system automatically calculate how much extra goods should appear in the sales order.
In terms of the FX market, SAP offers you full support of processing:
As with Money Market instruments, SAP supports complete end-to-end processing of the currency transactions – including currency valuation of FX Forwards (which may be processed in one of several ways – manually entered forward rates, spot rates on valuation date, interpolated rate or even on a basis of manually entered NPV).
Each entity records the assets held by groups. This is due to legal and tax purposes. SAP also is reflected and defined group of assets. It is the most important division inside the module FI-AA. Group’s assets also play a role purely technical, as determined displayed in the data record information assets and depreciation of basic data (eg. A group of “Transport” will be available to complete the “Vehicle registration number” and a group of “Assets under construction “will not be amortized. For each group of assets is assigned a range of numbers, which allows for easy identification of an individual component in its issue number.
Field status variant determines which fields are shown or required when creating data records.
Basic Book which collects economic events occurring in the enterprise with the division into general ledger account.
Bank with which the company code has the bank accounts. Created in SAP system bank keeps key information about the bank (country, financial institution’s name, address, IBAN, SWIFT number). Each bank is created in the system with a unique ID.
Facility system to securely access funds, account information and other banking services through a computer over the wide area of network or internet.
SAP system allows you to create, change, display and cancel invoices. Furthermore, invoices can be done automatically. Besides creating a single invoice SAP is also able to create collective invoice.
Internal orders are used to plan, collect and settle the costs of internal activities of the entity. The SAP system enables monitoring of internal orders with standard reports. They are created to control costs of internal activities.
In SD module there is an incompletion log. Incompletion log is a functionality, which allow the user to check what kind of data are required, but missing in the sales document. Incompletion log allows to get into the proper field that should be filled in the document.
By creating a list of materials for a particular customer, we can enable him to order only those materials, that have been included in the list.
Specific items of the document, which define what elements (cost or revenue) consists of the document.
In the area of Money Market you may process transactions concluded on the most popular financial instrument from all over the world. Among these instruments there are: deposits on fixed / floating interest rate, deposits at notice, commercial papers, credits and credit lines. SAP supports you with handling end-to-end processing of the money market transactions – starting with their creation, through settlement, and execution of postings and obligatory period end processing (currency valuation, interest accruals).
In the standard version of SAP system, the product hierarchy consists of up to three levels. That enables you to use it for pricing or statistical analysis. You can also set product structure, for example A-Lotion-500BOT which means that it is a lotion of A brand in 500 ml bottle.
SAP system gives the opportunity to set the automatic substitution of material numbers in sales documents during process. By this option, SAP can substitutes specific material with your own numbers, with EANs or during the specified period.
SAP Market Risk Analyzer is as set of complementary tools to analyse market risk based on current market data and the concluded financial deals stored in SAP Transaction Manager. The solution also enables you to process “What-if scenario” analysis (Sensitivity analysis) based on pre-defined market criteria like interest rate fluctuation, bonds profitability and many other market factors including commodity prices or FX rates.
SAP system provides three types of fields:
Until the required field is not completed the system does not allow us to go further.
Expenses that are incured by functioning of the business but cannot be directy associated with products manufactured by the entity.
This is the highest level in raporting structure in SAP CO that is used to structure and segment the market. You can analize values from CO-PA (Profitability Analisys) at this level.
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.
The combination of CO-PA characteristics that provides information about products, clients, sales etc.
It is an organizational unit representing an area of responsibility for costs and profits in an organization.
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 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.
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.).
SAP Portfolio Analyzer is a set of tools dedicated to multidimensional analysis of transaction / portfolio effectiveness and profitability. It allows you to calculate and measure ROI in several ways (TWRR, MWRR) or to compare the realized results with the beforehand planned targets or with the self-constructed or market benchmarks.
The plant plays a major role in logistics and sales. When we create, process, produce or transport an item, the system automatically determine the related plant of item’s master data. Without a specific plant, any process connected with the item is not possible to process in the system.
Periodic reposting is executed at the end of a period to allocate costs from cost centers to other SAP CO objects.
The route, which the material is to be transported from the Shipping point to the Ship-To Party.
Payment, which is formed when the compensation is made and remains part of the payment.
Reference Document is a document, which we refer to when creating a new or another document in the process.
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 originate from financial postings on real SAP CO objects. Real values can be settled to a G/L account or other SAP CO objects.
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.
Additional postings used for internal analysis or management accounting reporting.
SKFs are used as the basis for cost allocation. Statistical key figure can represent square metrage, man-hour, the amount of employees, etc.
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.
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).
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.
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 and Risk Management is an integrated solution which is used for managing financial instruments of an enterprise. The key elements of this solution are:
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 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 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 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 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 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.
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 defines the structure of the company in SD part. Sales area consists of three parts: sales organization, distribution channel and division.
It is the instrument dedicated to managing, reporting and Mark-to-Market valuations of financial instruments.
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.
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.
Value-added tax. The main principle for its calculation is to taxation the final customer of goods or services.
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.
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.