Introduction What is an ERP system? And why should businesses use it? Today, small and medium-sized businesses (SMEs) also face some of the problems that large enterprises do. One of them being planning and managing their resources. SMEs face similar complexities but have limited resources to deal with them. Small businesses (like their bigger counterparts) have to: Do accounts to track their sales/purchases. Do their taxes. Pay their employees. Manage deliveries within promised timelines. Deliver quality goods and services. Communicate with customers, answer their queries. Large enterprises invest millions of dollars in highly sophisticated systems like SAP. SAP and similar systems are able to handle requirements from these large enterprises to bring their multi-country , multi-company , multi-currency , global businesses into a single platform. This has helped them achieve consolidation of data/records in the fundamental processes such as accounting, taxation,...
A company is defined as the smallest unit for which financial statements can be created in accordance with commercial legal regulations. In SAP FI, a company can comprise of multiple codes, however it acts as a single unit for which financial statements are available. All the company codes must use the same chart of accounts list and fiscal year, however each code can have a different local currency. A chart of accounts list consists of all the chart of accounts that can be used and each code must have one chart of account. A fiscal year normally consists of twelve months’ time period where company creates the financial statements. SAP FI – Create Company Login to SAP FICO Use T-code SPRO → click on SAP Reference IMG → New window will open. Expand SAP Customizing implementation guide → Enterprise Structure → Definition → Finance Accounting → Define Company → click on Execute (see the pointer in the screenshot). A new window will open → click on New Entries → New Entries: Det...
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