Financial Accounting - Assignment by Company

Financial Accounting Steps

1. Company Codes

• Survival of next step
• Warning: Company currency differs from company code currency

2. Global Settings: Financial Accounting

• Ledger Settings
  • Maintain fiscal year variant
  • Assign fiscal year variant and company code (e.g., C45)
• Field Status Variants
  • Assign field status variants to company code (C45)

3. General Ledger Accounting

• Chart of Accounts
  • Assign company code (C45)
  • Account Group: C45
  • Copy AA4 to C45
  • Define retained earnings account
• General Ledger Master Data
  • Define and prepare GL accounts
  • Assign company code to chart of accounts (C45)

4. Business Transactions: Document Processing

• Splitting documents per profit centers (e.g., C45)
• Copy and create entries from AA42 to C45

Controlling Steps

Maintain Controlling Area

• Settings
  • Create controlling area (C45)
  • Define currency valuation (K4)
• Activate Components
  • Start from a specific year (e.g., 2003)
  • Component: Activity-Based Costing
• Assignment of Company Codes
  • Assign company code to controlling group

Profit Center Accounting

• Basic Settings
  • Maintain controlling area settings
  • Define standard hierarchy (e.g., C45)
  • Confirm currency (e.g., PKR)
  • Types of valuations: Group, Profit Center, Legal

Master Data

• Profit Center Hierarchy
  • Create lower level and same level profit centers
  • Example groups: Champion group, South operations, North operations
• Create Dummy Profit Center
  • Code: C45
  • Add basic data (dummy)
  • Segment often necessary for activation

Defining Profit Centers

• Create Individual Profit Centers
  • North operations, South operations (example)
  • Segments: e.g., automobile, chemicals
• Head Office Profit Center
  • Create HQ profit center
  • HQ does not have a specific segment

Financial Accounting: Segments

• Financial accounting defines segments
• Segments are independent entities

Document Splitting and Profit Centers

• Activate profit center accounting
• Define profit center hierarchy and groups
• Assign default profit center to accounts

General Ledger Accounts

• Validate GL accounts using various transaction codes
• Examples: SC16N, SM30

Example GL Accounts Created

• Different Types
  • Liquid funds, equity retained earnings, local vendor accounts
  • Control data and tax categories assignment

Key Operations

• Ensure posting dates, tax categories, sort keys
• Creation involves specifying details like balance sheet account type

Final Steps

• Ending with balance technology validation

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Important: Follow steps methodically to ensure compliance and accuracy in financial reporting.