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Free and Open Source ERP - ERP next

  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, payroll, reporting
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SAP FI - Business Area

Business Areas are used to differentiate transactions that come from different lines of business in a company. Example There is a big company XYZ which runs multiple businesses. Let us assume it has three different domains like manufacturing, marketing, and sales. Now you have two options − First is to create different company codes. And the other better option is to create each of these business lines into the business areas. The benefits of using Business Areas in this case are as follows − You can use these business areas if other company codes require the same areas. It is easy to configure if you use a Business Area, as you just need to attach to the company code and the other details in that business area will get attached automatically. By using Business Areas in controlling, you can create Profit and Loss statement, Balance Sheet, etc. for business areas. Hence it is used for management accounting in a few companies. Note  − Business areas are used more in Controlling as compar
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SAP FI - Company Basics

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: Details of a
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SAP FI - Submodules

SAP FI has a collection of submodules, as depicted in the following screenshot − Finance Accounting - General Ledger A General Ledger contains all the transaction details of a company. It acts as the primary record to maintain all accounting details. Common general ledger entries are customer transactions, purchases from vendors, and internal company transactions. Common  T-codes  that are used to maintain G/L accounting − F-06 F-07 FBCJ FB50 FB02 Finance Accounting - Accounts Receivable and Payable (AR / AP) It includes the details of amount that is paid by the customer and the amount that is paid by company to the vendors. In other words, AP includes all the vendor transactions and AR includes all the customer transactions. Common SAP AR  T-codes  − FD11 FD10 FRCA VD01 Common SAP AR Tables − KNA1 KNVV BSIW Common SAP AP  T-codes  − XK01 MK01 MK02 FCHU Common SAP AP Tables − LFA1 LFM2 LFBK Finance Accounting Asset Accounting Asset Accounting deals with all the fixed asset of the compa
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SAP FI Intro

  SAP FI stands for Financial Accounting and it is one of important modules of SAP ERP. It is used to store the financial data of an organization. SAP FI helps to analyze the financial conditions of a company in the market. It can integrate with other SAP modules like SAP SD, SAP PP, SAP MM, SAP SCM, etc. SAP FI comprises of the following sub-components − Finance Accounting General Ledger. Finance Accounting Accounts Receivable and Payable. Finance Accounting Asset Accounting. Finance Accounting Bank Accounting. Finance Accounting Travel Management. Finance Accounting Fund Management. Finance Accounting Legal Consolidation. Where Do We Use SAP FI? SAP FI module enables you to manage financial accounting data within an international framework of multiple companies, currencies, and languages. SAP FI module mainly deals with the following financial components − Fixed asset Accrual Cash journal Accounts receivable and payable Inventory Tax accounting General ledger Fast close functions Fin
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SAP Enterprise Structure

  What is an Enterprise Structure? SAP defines the  enterprise structure  as “the definition of specific organizational units that together represent your company’s business units and divisions.” Enterprise structures are the bedrock of the SAP FI solution; without them, you couldn’t integrate and configure your program. You couldn’t run SAP FI at all.   So which enterprise structures do you need in order to run SAP FI? Let’s take a look at them.   Company and Company Codes A company is defined by SAP as “an organizational unit in accounting that represents a business organization according to the requirements of commercial law in a particular country.” This is the highest level of organization for accounting. To get the idea—Alphabet, which oversees many, many businesses such as Google and Calico, could be considered a company. Each of these subsidiary businesses, all doing their own things while united under Alphabet’s organization, is assigned a  company code . These identifiers hel
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