Integrated Business Processes with ERP Systems Chapter 3 – Flashcards
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Account determination
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The reconciliation account for each asset in the asset sub ledger account is determined by its association with an asset class
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Account group
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groups together accounts with similar characteristics; final data element in the COA segment.
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Accounts payable accounting
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associated with the procurement process
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Accounts receivables accounting
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associated with the fulfillment process and is used to manage money owed by customers for goods and services sold to them
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Asset Accounting
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used to record data related to the purchase, use and disposal of assets such as buildings, equipment, machinery and automobiles
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Asset class
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a grouping of assets that possess similar characteristics
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General Ledger
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used to record financial impacts of business process steps; contains much of the data needed for financial reporting
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Bank ledger accounting
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concerned with recording data associated with bank transactions
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Balance sheet
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a snapshot of the organization at a point in time
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Income statement
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AKA P&L statement; indicates the changes in a company;s financial position over a period of time.
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Statement of cash flow
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displays all cash receipts and payments over a specified period of time
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Business areas
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internal divisions of an enterprise that are used to define areas of responsibility or to meet the external reporting requirements of an enterprise segment
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segment
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a division of an enterprise for which management monitors performance (revenue, costs, profitability, etc.) separately from other segments
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Chart of accounts (COA)
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an ordered listing of accounts that comprise a company's general ledger
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Assets
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what the company owns, such as cash, inventory of materials, land, buildings, and money owed to the company by its customers (receivables)
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Liabilities
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what the company owes to others, including money owed to vendors (payables) and loans from financial institutions
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Owner's equity
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owner's share of the company's assets
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Revenues
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the monies the company earns by selling its products and services
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Expenses
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the costs associated with creating and selling those products and services.
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Reconciliation accounts
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general ledger accounts that consolidate data from a group of related subduer accounts, such as customers and vendors.
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Financial accounting document (FI document)
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records the impact (financial data) of a transaction step on financial accounting
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parallel accounting
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multiple ledgers in parallel using each ledger for different purposes.
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Cost Center
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associated with a location where costs are incurred
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Depreciation
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decrease in value
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Depreciation areas
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book depreciation, cost accounting depreciation, and tax or legal depreciation
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Asset Explorer
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provides an overview of all the activities related to the asset, including acquisition data, planned and posted depreciation for different depreciation areas and comparisons of data across multiple years.
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Financial statement version
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a hierarchical grouping of general ledger accounts that must be included in the financial statements
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Focus of Financial Accounting
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External Reporting
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Focus of Managerial Accounting
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Internal Reporting
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Purpose of Financial Accounting
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Legal reporting, tracking financial impact of processes, communicating with investors
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Content of financial accounting
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defined by laws and regulations
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Purpose of Managerial Accounting
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Managing the firm with regard to costs and revenues
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Content of Managerial Accounting
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Defined by management needs
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Client
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Highest organizational level in SAP ERP
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Company Code
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represents a separate legal entity and it is the central organizational element in financial accounting.
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Subsidiary Ledger (Subledger)
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Not part of the general ledger; a group of similar accounts whose combined balances equal the balance in a specific general ledger account.
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Procurement, sales, HR, Marketing
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Key integration points between financial accounting & other processes
