FI/CO

Welcome to our SAP FI/CO module category page, where you can find a comprehensive collection of documents, tutorials, and guides. Explore our extensive resources to gain insights into financial accounting, controlling, and related processes, enabling you to master key concepts and optimize your SAP FI/CO implementation with ease.

Direct Allocation Methods of Posting in Controlling

The Direct Allocation of posting in SAP Controlling may be an actual cost entry or a transaction-based posting.
The actual cost entry is the transfer of primary costs from FI to CO, on a real-time basis, through the primary cost elements. You may also transfer transaction data by making the cost accounting assignment to cost objects from other modules such as FI-AA, SD, and MM:

  • FI-AA: Assign assets to a cost center (to post depreciation, etc.)
  • MM: Assign GR to a cost center/internal order
  • SD: Assign or settle a sales order to a cost center or internal order

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What is Splitting in SAP ?

‘Splitting’ is a process in SAP used to assign ‘activity-independent’ plans/actual costs, both primary andsecondary, of a cost center to the individual activity types within that cost center. But the important requirement is that you will use this when there is no account assignment to the activity types.

You may either use the Splitting rules or the Equivalence number to achieve this. When you split the costs from a cost center, the cost center temporarily becomes more than one cost center for the purpose of allocation but again becomes a single cost center when posting happens in the subsequent period.

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Asset Under Construction (AuC) in SAP: Intro with Process Flow Diagram

The goods and/or services produced, in-house, can be capitalized into asset(s). But, there are two distinct phases during this process:

  1. Construction phase (AuC)
  2. Utilization phase (useful or economic life phase)

It then becomes necessary to show the assets under these two phases in two different balance sheet items:
The ‘construction phase’ is one in which you start producing or assembling the asset but it is not yet ready for economic utilization. SAP categorizes these kinds of assets into a special asset class called ‘Assets under Construction’ (AuC).

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Who is an Alternate Payee in SAP?

A customer who pays on behalf of another customer is known as an ‘Alternate Payee’ (or Alternate Payer). Though the alternate payee pays on behalf of another, the system maintains all the transaction details in the account of the original customer. Designating ‘alternate payee’ does not absolve the customer of his/her obligation for payment.

The ‘alternate payee’ can be maintained in Client-specific data or in the Company Code area. When maintained in the Company Code area you can use that payer only in that Company Code; if defined at the Client level you can use it across all Company Codes.

There are three ways to ‘select’ the alternate payee when an invoice is processed:

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Difference Between Parking and Holding of Documents

The ‘Parking of a Document’ in SAP is one of the two preliminary postings (the other being the ‘Holding’ of documents) in the system and refers to the storing of incomplete documents in the system. These documents can later be called on for completion and posting. While ‘parking’ a document, the system does not carry out the mandatory ‘validity checking.’ The system does not also carry out any automatic postings (such as creating tax line items) or ‘balance checks.’ As a result, the transaction figures (account balances) are not updated. This is true in the case of all financial transactions except in the area of TR-CM (Cash management) where ‘parked’ documents will update the transactions.

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What is Document in SAP?

SAP is based on the ‘document principle’ meaning that a document is created out of every business transaction in the system. The Document is the result of a posting in accounting in SAP, and is the connecting link between various business operations. There are two types of documents:

  1. Original Documents: these documents relate to the origin of business transactions such as invoices, receipts, statement of accounts from bank, etc.
  2. Processing Documents: These include ‘accounting documents’ generated from postings in the system, ‘reference documents,’ ‘sample documents,’ etc. The processing documents other than the accounting ones are also known as ‘special documents’ and they aid in the simplification of document entry in the system.

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