SAP FICO Enterprise Structure

 SAP recommends using separate ledgers for each accounting principle . For example: One ledger assigned to US GAAP Another ledger assigned to local accounting principles Additional ledgers for other reporting standards, if required These different accounting standards must be properly represented in the SAP system. Purpose of Ledgers in SAP HANA Ledgers in SAP HANA are designed to map parallel accounting business transactions in General Ledger Accounting. They provide the flexibility to maintain multiple parallel ledgers , each aligned with a specific accounting principle. This approach allows organizations to: Record the same business transaction under different accounting rules Maintain legal, group, and management reporting in parallel Avoid duplicate postings across separate systems Why Parallel Accounting Is Required In recent years, financial reporting requirements have increased significantly . Organizations are primarily responsible for mee...

 Business Scenario O The company wants to keep a record of management costs and profits O The management wants to have the functionality of cost accounting in SAP system O They want that the internal cost should be calculated in USD which is global/group currency O The management wants to setup the following Cost center and Profit center groups and their related Cost centers and Profit centers: O Inventory O Utilities O Assets O Finance O Production O Marketing O Maintenance O Research & Development Controlling (CO) in SAP – Organizational Setup and Configuration Guide Maintain Controlling Area O In SAP, Controlling area is an organizational unit which is responsible for management of costs and profits O It is used to subdivide the business organization from a cost accounting standpoint O There is one to many relationship between Controlling area and Company code, so many Company codes can be assigned to a single Controlling area O SAP recommends that you create a Controlling ...