Answer Key
- SAP FI (Financial Accounting) is used to store an organization’s financial data to help analyze the company’s financial condition in the market. It can integrate with other SAP modules such as SAP SD (Sales and Distribution), SAP PP (Production Planning), SAP MM (Materials Management), and SAP SCM (Supply Chain Management).
- A Company is the smallest unit for which financial statements can be created, and it can comprise multiple Company Codes. A Company Code is the smallest organizational unit for which a complete set of financial statements, like a profit-loss statement, can be generated.
- Holding a document is a way to temporarily save an incomplete or incorrect G/L document for later completion. Parking a document allows a user without sufficient authorization (e.g., for a high amount) to save the document for review and posting by a user with the appropriate authority; the amount is not posted to G/L accounts until it is approved.
- A Posting Key is a two-digit numerical key used to determine the type of posting (debit or credit) and the account type. The five main account types are A (Assets), D (Customers), K (Vendors), M (Materials), and S (General Ledger Account).
- Business Areas are used to differentiate transactions that come from different lines of business within a company, such as manufacturing, marketing, and sales. Using Business Areas is often a better option than creating separate company codes because they can be shared across multiple company codes and are easier to configure.
- The Automatic Payment Program (APP) is used to automatically post accounts payable, such as payments to vendors based on their invoices. It finds due or overdue invoices and processes a list of customer and vendor invoices to make payments in a single run.
- A Cost Center is a component in an organization that adds to the cost and indirectly contributes to the profit. Examples include departments like Marketing and Customer Service, where costs are easily measured.
- An Internal Order is used to monitor the costs (and sometimes revenues) of a time-restricted job or specific activity. When the job is complete, the costs collected in the internal order are settled to one or more receivers, such as cost centers or fixed assets.
- The two types are Costing-based Profitability Analysis and Account-based Profitability Analysis. Costing-based groups costs and revenues by value fields for short-term reporting, while Account-based is permanently reconciled with financial accounting.
- A dunning letter is a reminder sent to a customer who has missed a payment due date for an outstanding invoice. The dunning system can trace liable customers and manage the process from reminders to collections, covering documents like open A/R invoices, credit memos, and installments.