Terminology

A/P invoice (SBO)

An internal document that creates a journal entry and updates the inventory if a
goods receipt PO has not been issued.

This document cannot be changed or deleted once it has been saved in SAP
Business One.

A/R invoice (SBO)

A legally binding document issued to customers itemizing money owed for products
or services rendered.

This document cannot be changed or deleted once it has been saved in SAP
Business One.

Accounts Receivable (FI-AR)

An object that contains all credit-related information from the FI-AR application
component that is used for credit checks during sales order processing in the SD
application component.

In systems where FI is centralized and SD decentralized, the A/R summary can be

used to reduce the number of times data is accessed from the database.

ASAP (AcceleratedSAP) (SV-ASA)

A standard methodology for implementing and continually optimizing SAP software

efficiently.
AcceleratedSAP (ASAP) supports the implementation of the SAP system and of
[Link] components and can also be used for upgrade projects. It provides a
wide range of tools to suport all stages of an implementation project, from project
planning to the continual improvement of the SAP system.

The two key tools in ASAP are the Implementation Assistant and the Question and
Answer database (Q&Adb):

 The Implementation Assistant contains the ASAP Roadmap, and provides a

structured framework for an implementation, optimization or upgrade project.
 The Q&Adb allows you to set your project scope and generate your Business
Blueprint using the SAP Reference Structure as a basis.

Account (FS-BA-SD)

The primary object "account" is a specific occurrence of a template of the template

category "settlement account," "securities position account," "customer position
account," or "G/L account." Each account refers to one specific template version,
and is defined in accordance with the information specified for that template version.

Various account categories are available because customers want to be able to

access different positions via an account (positions pertaining to customer business,
say, or internal positions) and also to reference different financial transactions and
instruments.

Account Assignment (AC)

Accounting - General (AC)

The accounting objects and/or accounts that are posted for a business transaction.
Account Balance (Fi)

A display of the business transactions posted to an account in the form of an

overview, broken down by posting period, debits and credits.

The balance for the posting period and the accumulated balance of the account are
also displayed.

Account Determination (FI)

An automatic function that determines the accounts for posting amounts in Financial
Accounting.

Account Group (FI)

An object with attributes that determine the creation of master records.

The account group determines:

The data that is relevant for the master record

A number range from which numbers are selected for the master records

An account group must be assigned to each master record.

Account Reconciliation (FI)

A procedure for ensuring the reliability of accounting records by comparing the

balances of the business transactions posted.

The account balances of current accounts are compared to the balances of the
reconciliation accounts and the posted business transactions.

Accounting Method (Sbo)

A set of rules that define how business transactions are recorded in an accounting
system.

There are two accounting methods in Israel:

Unilateral - for businesses that use unilateral bookkeeping

Double - for businesses that use double entry bookkeeping; that is, they record every
transaction in at least two different accounts using debits and credits.

Accounting Currency (FS-CMS)

Collateral Management System (FS-CMS)

The currency in which a bank renders its accounts.

Example

Deutsche Bank is a German bank for which the local currency is Euro but the
accounting currency is the USD.

Accounting Statement (FI)

A document containing a number of mandatory parameters that confirms an

accounting transaction; such a document is required by Russian law in cases where
no primary accounting document (such as an invoice, payment order, or goods
receipt) exists to confirm the transaction.

Accounting System (Fi)

Basis for customizing business management within the accounting components

(Accounting Engine, General Ledger, Financial Inventory Ledger).

Accounting systems define separate methods for displaying actual business

transactions. They can apply different accounting principles (such as IAS, US GAAP,
or the German Commercial Code). Each accounting system produces its own type of
document.
Postings can be made to several accounting systems at the same time. This means
that a business transaction can produce a different accounting document
simultaneously in each of the accounting systems.

The chart of accounts and the fiscal year variants are based on the particular
accounting system.

Accounts Payable (SBO)

Liabilities currently owed by a person or business.

These debts arise mainly from the purchase of goods or services.

Accrual (FI-GL)

General Ledger Accounting (FI-GL)

Method used to distribute expenditures, revenue, receivables, and losses to the

correct period and based on the origin of those amounts.

Example:

For the lessor, the lease and the lease term determine the amounts to be accrued.

Accrual And Deferral (FI)

Financial Accounting (FI)

The assignment of an organization's receipts and expenditure to particular periods,

for purposes of calculating the net income for a specific period.

A distinction is made between:

Accruals - An accrual is any expenditure before the closing key date that represents
an expense for any period after this date.
Deferrals - Deferred income is any receipts before the closing key date that
represent revenue for any period after this date.

Financial Accounting (FI)

An additional posting, such as a tax adjustment, for one or more business

transactions that have already been posted.

Allocation (FI-SL)

The process of assessing or distributing amounts and quantities from one sender
object to one or more receiver objects

Example

Allocation from one cost center to multiple cost centers.

Asset (SBO)

All items to which a value can be assigned.

There are two kinds of assets:

Financial (Example: cash)

Physical (Example: machinery)

Asset Accounting (FI-AA)

A subsidiary ledger accounting module in Financial Accounting.

All business activities for fixed assets are recorded in Asset Accounting.

Asset Acquisition (FI-AA)

The acquisition to fixed assets.

There are the following types of asset acquisition:

Purchase acquisition

Acquisition from in-house production

Subsequent acquisition to an already capitalized asset

Post capitalization (in a period after that of the actual acquisition)

Asset Class (FI-AA)

The main criterion for classifying fixed assets according to legal and management
requirements.

For each asset class, control parameters and default values can be defined for
depreciation calculation and other master data.

Each asset master record must be assigned to one asset class.

Special asset classes are, for example:

Assets under construction

Low-value assets

Leased assets

Financial assets

Technical assets

Asset Explorer (FI-AA)

A tool for displaying asset values.

It displays:

Both planned and posted asset balance sheet values and depreciation

All transactions on the asset

Developments in a business area over several fiscal years

Asset Life-Cycle Management (PM)

A component for organizing and managing technical assets and objects.

Asset Life-Cycle Management comprises all the areas of a modern EDP-supported

system for maintenance management. These areas include preventive maintenance,
inspection plans, catalogs to determine causes of damage, spare parts procurement
over the Internet, inventory management, shutdown planning, and external interfaces
to GIS, SCADA and CAD.

Audit (IS-CC)

An administration object that enables to search for certain operations made by users
or requested by external systems.

Automatic Debit Transfer (FI)

A payment procedure by which the payer provides the payee with written
authorization to debit their account with the appropriate payment amount.

Reference to this authorization must be made on the debits.

By contrast, under the direct debiting procedure, the payer authorizes his or her bank
directly.

Automatic Posting (FI)

A posting that is made by the SAP System for certain transactions.

Automatic postings are typically made for:

Output and input tax

Exchange rate differences

Cash discount paid and received

Each automatic posting is represented by a separate line item.

Balance (FI)

An amount resulting from the difference between the debit and credit side of an
account or document.

There are the following types of balances:

Credit balance (credit side is larger)

Debit balance (debit side is larger)

Balance Carryforward (FI)

The transfer of an account balance from the previous year.

Balance Sheet Account (FI)

An account on which the debit and credit entries resulting from business transactions
are recorded.

The balance of a balance sheet account is carried forward at fiscal year-end.

Balance Sheet (SBO)

A statement of the financial position of a company on a given date, usually the last
day of each financial year.
It is a summary of all the account balances of a business.

Bank Master Data (FI)

Informationen about a bank that is required to conduct business transactions with

this bank.

This information is stored centrally in the SAP System.

Example

- Name of the bank

- Address

- Country-specific details

Base Currency (MP-APP-DPE)

The currency that serves as the base for converting bids submitted with alternative
currencies. An initiator sets the base currency when creating an opportunity.

Business Partner (FI)

A natural or legal person or a group of natural or legal persons, not part of the
business organization but with whom a business interest exists.

Business Process (CO-OM-ABC)

Process in a company that uses resources and can involve the activities of different
departments.

A business process can consume the output of multiple cost centers in a controlling
area.
Business Process Model (BC-SYB-PD)

Helps you identify, describe, and decompose business processes. You can analyze
your system at various levels of detail, and focus alternatively on control flow (the
sequence of execution) or data flow (the exchange of data).

Cash Discount (FI)

A discount granted for those payments made within a certain period of time.

Cash Flow (FIN-FSCM-TRM-TM)

A collection of flow records in chronological order (actual and planned records),

including:

Flows generated from contract data (for example, a discount or charges)

Flows generated from conditions in a financial transaction (for example, interest or

repayment)

Flows entered manually using an application function (for example, unscheduled

repayment, disbursement, valuation)

Cash Journal (FI)

A double-entry compact journal managed in account form that records the postings
for cash transactions.

By setting the cash balance at the beginning of the day, the cash journal shows the
cash balance at any time by adding the cash receipts and deducting the cash
expenses. The cash journal also serves as a basis for entries in the general ledger
and thereby represents the "Cash" G/L account.
Chart Of Accounts (FI)

A classification scheme consisting of a group of general ledger (G/L) accounts.

A chart of accounts provides a framework for the recording of values to ensure an

orderly rendering of accounting data. The G/L accounts it contains are used by one
or more company codes.

For each G/L account, the chart of accounts contains the account number, the
account name, and technical information.

Operative Chart of Accounts

A chart of accounts must be assigned to each company code. This chart of accounts
is the operative chart of accounts and is used in both financial accounting and cost
accounting. Other charts of accounts include:

Country-specific charts of accounts -

These are structured in accordance with legal requirements of the country in

question

Group chart of accounts -

This is structured in accordance with requirements pertaining to Consolidation.

Chart Of Depreciation (FI-AA)

An object that contains the defined depreciation areas.

It also contains the rules for the evaluation of assets that are valid in a specific
country or economic area.

Each company code is allocated to one chart of depreciation. Several company

codes can work with the same chart of depreciation.
The chart of depreciation and the chart of accounts are completely independent of
one another.

Clearing Account (FI)

An account to which postings are recorded temporarily.

Clearing accounts are auxiliary accounts that exist for technical reasons and which
are cleared repeatedly.

Postings may need to be made to a clearing account because of:

A time gap between accounting transactions (GR/IR clearing account)

Organizational task distribution (bank clearing account)

Accounting transactions requiring clarification

Client (SAP)

In commercial, organizational, and technical terms, a self-contained unit in an SAP

system with separate msaster records and its own set of tables.

Company (FI)

The smallest organizational unit for which individual financial statements can be
drawn up according to the relevant commercial law.

A company can consist of one or more company codes.

All company codes within a company must use the same transaction chart of
accounts and the same fiscal year breakdown. The company code currencies can be
different.

A company has one local currency in which its transaction figures are recorded.

Company Code (FI)

The smallest organizational unit of Financial Accounting for which a complete self-
contained set of accounts can be drawn up for purposes of external reporting.

This includes recording of all relevant transactions and generating all supporting
documents required for financial statements.

Cost Center (CO)

An organizational unit within a controlling area that represents a defined location of

cost incurrence.

The definition can be based on:

Functional requirements

Allocation criteria

Physical location

Responsibility for costs

Credit Control Area (FI)

An organizational unit that represents an area responsible for granting and

monitoring credit.

This organizational unit is either a single company code or, if credit control is
performed across several company codes, multiple company codes. Credit
information can be made available per customer within a credit control area.

Customer Account (FI-AR)

A structure that records value movements in a company code that affect receivables
or payables against a customer.

customer master record (FI-AR)

A data record containing all the information necessary for any contact with a certain
customer, in particular for conducting business transactions.
This information includes, for example, address data and bank data.

Depreciation (FI-AA)

The reduction of the asset book value because of decline in economic usefulness or
because of legal requirements for taxes.

The SAP System identifies the following types of depreciation:

Ordinary depreciation provides for the planned distribution of the acquisition and
production costs over the useful life of the asset.

Special depreciation allows for depreciation above ordinary depreciation and is

based on tax specifications.

Unplanned depreciation is justified by a foreseeable, lasting reduction in the value of

the asset because of unplanned circumstances.

In the SAP System, depreciation can either be planned automatically on the basis of
keys, or manually. The SAP System can determine ordinary depreciation and special
depreciation using depreciation keys. Unplanned depreciation has to be handled
manually.

Discounting (FI)

The bills of exchange or checks can be "discounted" by being presented at a bank

for payment prior to the due date.

The full value of the bill or check is not received since the bank deducts interest
(discount)for the period between the date it is discounted and the due date, as well
as commission.

Display <-> Change (BC-FES-GUI)

A standard function in R/3 used to to toggle between display mode and change
mode.
Document (FI)

The proof of a business transaction.

Document Type

A key that distinguishes the business transactions to be posted.

The journal entry type determines where the document is stored as well as the
account types to be posted.

Down Payment (FI)

A part of the full price paid at the time of purchase or delivery with the balance to be
paid later.

Down payments are shown separately from other receivables and payables on the
balance sheet.

A distinction is made between:

Down payments made (displayed under fixed and current assets)

Down payments received (displayed under payables)

Dunning (SD-FT)

The process of notifying vendors to ensure the resubmission of vendor declarations

that are about to reach their expiration dates.

If a vendor declaration expires, it is not valid proof of a product's origin.

Financial Year (PA-PM)

The period of time during which an overall budget is valid.

Fiscal Year (FI)

A period of usually 12 months, for which the company produces financial statements
and takes inventory.

A fiscal year need not correspond to the calendar year. Under certain circumstances,
fiscal years containing fewer than 12 months are also permitted.

G/L Account (FI)

A structure that records value movements in a company code and represents the
G/L account items in a chart of accounts.

A G/L account has transaction figures that record changes to the account during a
posting period. These figures are totals that are used for G/L reporting.

Graphical User Interface

Graphical component of the user interface. Displayed in a window. Realized by SAP

GUI in an ABAP-based SAP system.

Implementation Project (SV-ASA)

ASAP (AcceleratedSAP) (SV-ASA)

The grouping and organization of business, technical, and organizational tasks

during the implementation of SAP Software in an enterprise.

In an implementation project, the project team performs tasks that are structured
according to a common project plan and Roadmap. During a global implementation,
in particular, the implementation strategy dictates the timing of the implementation
project ("Big Bang" or phased implementation).
Invoice (FI)

A message to the buyer of goods or services that contains, among other things, the
following information:

Name of the goods or services

Quantity sent

Remuneration due

Line Item (FI)

The part of a document containing information on a single item.

This information includes the:

Amount

Account number

Whether the item is a debit or credit

Additional information depending on the transaction to be posted.

Material Master Record (LO)

A data record containing all the basic information required to manage a material.

This data is sorted according to various criteria including data of a descriptive nature
(such as size, dimension and weight) and data with a control function (such as
material type and industry sector). In addition to this data, which can be directly
maintained by the user, it also contains data that is automatically updated by the
system (such as stock levels).

The remaining monetary value that is reported for an asset in Asset Accounting. The
system determines the net book value from the difference between the acquisition
and production costs and the depreciation on the asset at a given point in time or at
the end of the useful life of the asset.
Open Item (SBO)

In purchasing or sales, a document that has not yet been transferred to a follow-on
document.

Example

Outgoing invoice without incoming payment

P&L close (FI-GL-GL)

The transfer of a balance or line items from a P&L account to a balance sheet
account so that the accounts are balanced independently.

Parent Company (FI-LC)

The parent companies are those companies in a subgroup that have a substantial or
dominating influence over other subgroup companies.

Parked Document (IS-U-CS)

Document created for a particular action within the accelerated move-in / move-out /
move-in/out entry.

Partial Payment (FI)

A payment in partial settlement of an outstanding invoice amount.

Tab Pages (Bw-Bex)

Web item that enables the arrangement of Web items in tab pages.
SAP Special G/L Transactions

Special G/L transactions are special transactions in accounts receivable and

accounts payable that are recorded in the General Ledger in alternative
reconciliation accounts instead of the normal Vendor/Customer reconciliation
accounts. We usually make use of Special G/L Transactions to take care of business
process requirements of down payments, retentions, guarantees etc. In this post we
will discuss the concept of Special G/L Transactions, the system settings for Special
G/L Transactions and some end user activities related to Special G/L Transactions.

Financial Statement Version

General Ledger accounts can be used as per legal regulations to generate the final
statements. Financial statement versions are used to create the financial statements,
to run account balance reports and for General Ledger accounting planning.

You can also define multiple financial statement versions to generate financial
statements in different formats.

Segment Reporting

One use segment reporting to portray the items in the financial statements
by segment. The detailed results are then presented by segment. Annual financial
statements supplemented by the segment information from segment reporting
provide deeper insights into the financial position, asset position, and profit situation
of a company.
Segment reporting is required by some accounting principles, such as US GAAP and
IFRS.

Bank Reconciliation

A bank reconciliation is the process of matching the balances in an entity's

accounting records for a cash account to the corresponding information on a bank
statement. The goal of this process is to ascertain the differences between the two,
and to book changes to the accounting records as appropriate. The information on
the bank statement is the bank's record of all transactions impacting the entity's bank
account during the past month.

Trading Partners

Trading Partner is a term used in trade and commerce and can be generally defined
as “one of the two or more participants in an ongoing business relationship

Financial Closing Cockpit

Financial closing cockpit solutions provide company-wide accessibility so you can

accelerate an accurate financial closing cycle at any level. To truly optimize the
financial close process, you need solutions that provide control over each step of the
close cycle in addition to processing postings and producing reports. SAP Financial
closing cockpit is designed for businesses of all sizes and support a streamlined,
more accurate financial close. It helps you meet regulatory compliance and gain
confidence in your financial reports. SAP Financial closing cockpit solutions span the
entire close cycle, from the entity to corporate level. They include highly automated,
standardized functionality supporting accounting, reconciliation, and consolidation
activities. Scheduling tools help you sequence, monitor, and control workflows
across your organization, so the entire close process moves along efficiently.