Integrated

Click
 Financial
to edit Master titleModules
style

Inbound Logistics Financial Accounting Outbound Logistics

(FI/CO)
Materials Management • General Ledger
Sales & Distribution (SD)
(MM) • Accounts Payable • Sales Order
• Purchase Order • Accounts Receivable • Delivery
• Goods Receipt • Asset Accounting • Invoice
• Invoice Receipt • Cost & Profitability

Real-time Integration
Click
 toOrg
SAP editStructure
Master Principles
title style
Transaction Data

Business events are recorded as ORG

transactions in SAP. STRUCTURE

• Financial transactions are

recorded in financial modules
MASTER
& submodules DATA

e.g. Journal entries,

AP + AR Invoices etc.
TRANSACTIONAL DATA
 Core
Click to edit Master
Finance title style Elements
Organizational
Operating Concern – Global Bikes

Controlling Area – Global Bikes Cost & Profitability

Company
Legal Corporate Global Bikes

Profit center
Commuter
Chart of Accounts - Global Country chart

Segment
Leisure
Company Company Company
code ABC Inc code XYX Inc code GB LTD

Profit center
Race
Cost Center 1 Cost Center 4 Cost Center 7

Cost Center 2 Cost Center 5 Cost Center 8

Segment
Sport
Cost Center 3 Cost Center 6 Cost control

Profit center
Triathlon
Plant –Mnf. Plant –Mnf.

Inventory
Click
 to edit Payable
Accounts Master –title style Process
Business

Source
Purchasing

Request Place
Products Receive
Dept.

Vendor Purchase
from Goods
record Order
Start Suppliers

Approve & Receive

Create Vendor Supplier
Accounts Payable Department

Master Record Invoice

Payment
Monitor AP Due?
Post Prepare
Open Items
Supplier AP Payment
due for Yes
Invoice Proposal
payment
No
Execute Payments
Automatic posted & AP
Payment open Items
Run cleared End
 APto– edit
Click Master
Manage title Payments
Supplier style
Manage Automatic Payments

• The SAP Payment program is used to process mass outgoing payments to suppliers
on a regular cadence, optimized according to the Suppliers payment terms and
early payment discounts scenarios.

• AP Open Item invoices are selected according to criteria – i.e. Vendor a/c’s, Due
date, Payment method etc..

• First a payment proposal is made, the proposal should be reviewed and approved
before the Final Payment run is posted & money is paid.

Not SOX / audit

approved controls
approved
Supplier
Payment Payment
Invoice OK? Supplier
Proposal Run
Open items

Clear Open Invoice after payment is posted

Click
 to edit Receivable
Accounts
Sales Dept. Master title style Process
– Business

Receive Request
Create Sales Deliver
Order from Customer
Order Goods
Customer record
Start

Approve &
Set Customer
Accounts Receivable Department

Create Customer Bill/Invoice

Credit Limit Customer
Master Record

Invoice
Monitor AR Match? Cash
Post Receive Yes
Open Items allocated &
Customer AR Customer
due for AR open
Invoice Payment
payment Items cleared
No
Resolve dispute Create
differences Customer
Dispute End
 ARto– edit
Click Master
Manage title style
Customer Payments
Manage Incoming Payments

• The SAP AR & Bank modules can process manual receipts, however for
large volumes & more efficiency you can integrate with your bank to
electronically process bank statements, lockbox etc..
• AR Open Item invoices are selected according to criteria – i.e. Customer
a/c’s, Invoice Reference numbers, invoice date etc..
• First cash is received into a bank clearing account, then it is subsequently
processed & matched with customer invoices.
• “Matching to Invoices” can be manual or automated. SOX / audit
Match to controls
AR Open
Items?
Bank Import Bank Run Match &
creates statement matching Clear AR
Payment file into SAP algorithm Yes Open Items
Customer No
Payments sent Unallocated cash
to the Bank In bank clearing a/c
Click
 to edit
Asset Master–title
Accounting
Procurement style Process
Business

Receive Request
request to Asset Create Receive
Purchase Master Asset PO Asset
Start Fixed Asset record

Approve &
Create Asset
Receive
Asset Lifecycle Management

Master Record AP
Supplier
process
Invoice

Post Asset Capitalize asset

Acquisition &
place in service

Disposal
End of Life ?
Post Asset Yes Post Disposal/
Depreciation
salvage etc..
monthly
No End
 AAto– edit
Click
 Logistics Integration
Master title style continued…
Not all assets are directly purchased

• SAP also supports Assets Under Construction (AUC) processes

• AUC’s are managed as a separate asset class until ready to capitalize
• E.g. Constructing a Plant or Building

• Assets can be manufactured using SAP Production Planning (PP)

• Assets could be built up as a project using SAP Project Systems (PS)

Asset Under Construction

Procurement
Process Project Systems (PS)
(MM)
Final Asset
Start
AUC Placed in
Depreciation
Capitalize costs Service
Manufacturing
Process
(PP)
 AAto– edit
Click
 Logistics Integration
Master title style continued…
Plant Maintenance (PM) module in SAP
• PM can be used to manage repair & maintenance of fixed assets
i.e. Plant & Machinery equipment

Assets G/L
e.g. Asset
Mixing Financial a/c
Machine G/L, AP, Assets etc.

Plant Maintenance (PM) Materials

Management (MM) Financial
Equipment – Engine transactions
Procurement
Equipment - Pump of Parts &
Services
Equipment - Cooling

• Equipment records can hold data like service schedules & warranty dates
• Procurement associated with repairs & maintenance is also fully integrated