1 Introduction

17

1.1 Content and Structure

18

1.2 Lederwaren-Manufaktur Mannheim

20

2 The Concept of Integrated Value Flows

25

2.1 Explanation of the Term “Integrated Value Flow”

25

2.1.1 Value Flow

26

2.1.2 Integration

28

2.2 Models for Representing Enterprise Processes

30

2.2.1 Porter’s Value Chain Model

30

2.2.2 SCOR Model

31

2.3 Extending the SCOR Model

36

2.4 Interaction Between Process Design and Controlling Approach

37

2.5 Summary

39

3 Basic Principles of Integration in SAP ERP

41

3.1 Structure of SAP Systems

42

3.2 Entity Model

43

3.2.1 Organizational Elements in the SAP System

44

3.2.2 Organizational Elements and Enhancements of the Standard SAP System

51

3.2.3 Excursus: The SAP General Ledger and Changes to the Organizational Structure

52

3.3 International Requirements

53

3.3.1 Parallel Accounting using the Classic General Ledger

54

3.3.2 Options of the SAP General Ledger for the Parallel Rendering of Accounts

56

3.4 Value Flow-Oriented Master Data Concept

58

3.4.1 General Ledger Account and Cost Element

59

3.4.2 Chart of Accounts

63

3.4.3 Material Master

65

3.4.4 Requirements Class

71

3.5 CO-PA as a Central Reporting Tool

73

3.5.1 Forms of CO-PA

74

3.5.2 Structure of Costing-Based CO-PA

75

3.6 Summary

83

4 Procurement Process

85

4.1 Procurement Process in the SCOR Model

86

4.2 Vendor Master as an Integrative Element

89

4.3 Purchase Order as the Basis of the Procurement Process

92

4.3.1 Purchase Requisition

92

4.3.2 Purchase Order

92

4.4 Updating Commitments

98

4.5 Integration of MM and Financial Accounting/Controlling

104

4.5.1 Basic Settings

105

4.5.2 Valuation Class Settings

109

4.5.3 Determining Transactions

114

4.5.4 Rebuild Process for Account Determination

123

4.6 Goods Receipt

128

4.7 Invoice Verification

130

4.7.1 Invoice Verification Process

131

4.7.2 Considering Tolerances

138

4.7.3 Automatically Releasing Blocked Invoices

141

4.8 GR/IR Account

142

4.8.1 Posting to the GR/IR Account

142

4.8.2 Clearing the GR/IR Account

143

4.9 Integration of Accounts Payable Accounting

147

4.9.1 Invoice Receipt Without MM Integration

148

4.9.2 Outgoing Payments

149

4.10 Mapping the Tax on Sales/Purchases

154

4.11 Summary

157

5 Sales and Distribution Process

159

5.1 Sales and Distribution Process in the SCOR Model

160

5.2 Sales Order as the Basis of Further Account Assignment

162

5.2.1 Profit Center Derivation

163

5.2.2 Deriving a Segment

164

5.3 Price Determination as the Basis of Value Determination

166

5.3.1 Conditions and Costing Sheet

166

5.3.2 Price-Determining Elements

170

5.3.3 Costing-Based Elements

173

5.3.4 Special Business Transactions

175

5.4 Goods Issue

178

5.5 Presentation of Receivables

182

5.5.1 Customer Account

183

5.5.2 Determining the Reconciliation Account

186

5.5.3 Integration of SD and Accounts Receivable

193

5.5.4 Mapping of Secondary Businesses

194

5.5.5 Dunning

195

5.5.6 Incoming Payment

196

5.6 Mapping Sales Revenues

204

5.6.1 Time of the Revenue Recognition

204

5.6.2 Presentation of Sales Revenues

205

5.6.3 Transfer to Overhead Cost Controlling

216

5.6.4 Troubleshooting for Revenue Account Determination

218

5.7 Summary

219

6 Production Process

221

6.1 Production Process in the SCOR Model

223

6.2 Basic Product Cost Controlling Data

225

6.2.1 Logistical Master Data

225

6.2.2 Prerequisites in Controlling

229

6.2.3 Basic Product Cost Controlling Settings

231

6.3 Product Cost Planning

241

6.3.1 Types of Product Cost Planning

241

6.3.2 Material Cost Estimate with Quantity Structure

244

6.3.3 Simulation and Base Planning Object

251

6.4 Cost Object Controlling

257

6.4.1 Cost Object Controlling Functions in SAP ERP

257

6.4.2 Period-End Closing

262

6.4.3 Period-Related Product Controlling

281

6.4.4 Order-Related Product Controlling

287

6.4.5 Product Cost by Sales Order

292

6.5 Summary

297

7 Closing and Reporting in SAP ERP

299

7.1 Innovations in SAP General Ledger

300

7.1.1 Activating Different Scenarios

300

7.1.2 Effect of Real-Time Integration of Controlling with Financial Accounting

302

7.2 HR Data Transfer

312

7.3 Inventory

315

7.4 Activities in Asset Accounting

317

7.4.1 Settlement of Assets Under Construction

317

7.4.2 Depreciation Posting Run

320

7.4.3 Periodic APC Values Posting

323

7.4.4 Asset Accounting Inventory

324

7.4.5 Technical Processing

324

7.4.6 Creating the Asset History Sheet

325

7.5 Period Control

326

7.5.1 Period Closing for the Material Master

327

7.5.2 Opening and Closing Posting Periods

327

7.6 Foreign Currency Valuation

329

7.7 Reclassification of Receivables and Payables

333

7.8 Value Adjustment to Receivables

334

7.9 Balance Carryforward

335

7.10 Manual Postings

336

7.11 Assessments and Distributions

338

7.12 Reconciliation

341

7.12.1 Accounting Reconciliation

341

7.12.2 Intercompany Reconciliation

342

7.12.3 Reconciliation Between Financial Accounting and Inventory Management

343

7.12.4 Reconciliation Between Financial Accounting and Controlling

344

7.13 Reporting

345

7.13.1 Reporting in General Ledger Accounting

345

7.13.2 Reporting in Open Item Accounting

349

7.13.3 Reporting in Controlling

349

7.14 Summary

351

8 Reporting with SAP NetWeaver BW

353

8.1 Basic Principles of Business Intelligence

353

8.1.1 Business Explorer Suite—Reporting with SAP NetWeaver BW

361

8.1.2 Business Content

364

8.2 Data Acquisition Examples

369

8.2.1 Financial Reporting

369

8.2.2 Profitability Analysis

373

8.3 Summary and Outlook

378

9 Optimizing Value Flows by Implementing the SAP General Ledger — A Real-Life Example

379

9.1 Project Charter

379

9.1.1 Preliminary Considerations

380

9.1.2 Actual Project Scope

384

9.2 Project Plan

385

9.2.1 Project Plan

387

9.2.2 Test Phases

388

9.3 Redesigning Value Flows

391

9.3.1 Concept for Segment Derivation

391

9.3.2 Value Flows in the Procurement Process

393

9.3.3 Value Flows in the Sales Process

394

9.3.4 Value Flows in Financial Accounting and Controlling

396

9.4 Project Review

397

9.5 Summary

397

Appendices

399

A Sample Closing Procedure Document

401

B Transactions and Menu Paths

407

B.1 Controlling

407

B.2 Financial Accounting

413

B.3 Materials Management

419

B.4 Production

421

B.5 Sales and Distribution

422

B.6 SAP NetWeaver BW – Customizing in SAP ERP

424

B.7 Miscellaneous

424

C The Authors

425