A/R summary

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.

absorption costing

A costing approach that does not differentiate between fixed and variable costs.

Costs are allocated to cost objects without being categorized as fixed or variable.

acceptance of services performed

A process of checking and confirming that services performed by a vendor (subcontractor) against a purchase order and recorded in a service entry sheet have been performed correctly.

The service entry sheet contains a set of service specifications. Outline levels are used to structure these specifications, and service lines contain the service descriptions, quantities, and values to be checked.

The service entry sheet can be processed further in Invoice Verification after acceptance.

The costs can be apportioned among different Controlling objects through the account assignment.

access

A part of the access sequence.

An access identifies the document fields used by the system to search for a condition record.

access sequence

A tool used to calculate overhead percentages for cost centers that take part in the calculation of imputed costs.

The overhead percentages are distinguished according to the type of cost center or the controlling area.

access sequence

A combination of accesses to condition records.

The access sequence defines the order in which the system searches for condition records.

account

A structure that records value transactions within an accounting unit (in this case a company code) as regards an element from a value grouping. The account can refer to an object to which the value transactions are assigned.

The account contains transaction figures, which contain the changes to the values in a summarized form per company code.

account allocation

A definition of the reconciliation accounts in which the SAP system posts the business transactions automatically from Asset Accounting to the Financial Accounting general ledger.

Also included are the offsetting accounts for these accounts.

account assignment

A tool that specifies of which accounts to post to from a business transaction.

account assignment category

A key indicating whether an item is to be assigned to an auxiliary account (such as a cost center).

The account assignment category determines which account assignment datails are required for the item (for example, cost center or account number).

account assignment category

A statement of settlement receivers.

Examples of account assignment categories include:

• Asset
• Cost center
• Cost object
• G/L account

account assignment group

A collection of debit cost elements that are settled under the same settlement cost element

account assignment model

A template used for document creation in which default values are provided for the posting of a business transaction.

An account assignment model may contain any number of G/L line items, and can be changed or enhanced as needed. Unlike sample documents, account assignment models may contain incomplete G/L line items.

account assignment object

An object to which costs or quantities are posted in Controlling.

Account assignment objects can be objects such as cost centers, internal orders, projects, or business processes.

account balance

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 balance interest calculation

A procedure for calculating interest on an account balance.

Example

This procedure could be used to determine the interest on loan accounts managed for the employees of a company.

account determination

A procedure that determines adjustment accounts for reconciliation postings between CO and FI manually, or automatically by means of substitution.

account determination

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

account determination procedure

A procedure in which all account determination types valid for revenue account determination in sales documents are stored in a particular sequence.

account determination type

A key that determines the access sequence and other conditions under which revenue account determination takes place in the sales document.

account group

An object that 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 life

The number of days that items - and therefore documents - in an account should remain in the document file, so that they can be displayed on the screen.

The posting date (or, for accounts with open item management, the clearing date) serves as a reference date.

account maintenance

The clearing of open items in an account.

account management

A specification of how a G/L account is to be managed.

This includes open item management and line item display.

account reconciliation

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.

account residence

The number of months in which items and therefore documents in an account should remain in the document file, so they can be displayed on the screen.

The posting date (or, for accounts with open item management, the clearing date) serves as a reference date.

account type

A key that specifies the accounting area to which an account belongs.

Examples of account types are:

• Asset accounts
• Customer accounts
• Vendor accounts
• G/L accounts

The account type is required in addition to the account number to identify an account, because the same account number can be used for each account type.

account-based profitability analysis

A form of profitability analysis in CO-PA.

Account-based profitability analysis reconciles the data between Financial Accounting and Controlling, since all costs and revenues are stored in accounts.

accounting document

The accounting documents record changes in values in a company code arising from accounting transactions.

They consist of one or more line items (postings), each of which represents an individual transaction posted to an account.

When posting an accounting document, the SAP system updates the transaction figures in the accounts to which the document is posted.

An accounting document is a representation within the SAP System of the document (for example, an invoice) that triggered the posting.

accounting indicator

The criterion according to which costs and revenues can be differentiated within the framework of service processing.

The accounting indicator serves as another distinguishing criterion in addition to distinction by cost element. In this way, incurred costs and earned profits can, for example, be identified by sales volume, warranty or good will.

accounts payable ledger

A ledger set up to account for the values from business transactions with vendors.

The accounts payable ledger records values at company code level.

accounts receivable ledger

A ledger set up to record the values resulting from business transactions with customers.

accounts receivable pledging

The transfer of a receivable from the previous creditor (assignor) to a new creditor (assignee).

accounts receivable pledging indicator

An indicator for receivables from goods and services that is used for financing purposes.

It is merely an indicator that is used for subsequent evaluations; setting the indicator does not trigger any process with a third party (for example, bank or credit provider).

accrual

Method used to distribute expenditures, revenue, receivables and losses to the correct period, based on the origin of these amounts.

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

accrual and deferral

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.

Deferred income is any receipts before the closing key date that represent revenue for any period after this date.

accrual calculation

Method of evenly spreading irregularly occurring costs over the periods involved and distributing them by cause to the appropriate periods.

In Controlling, a business expense can only be transferred with a partial amount. If costs are incurred in large batches for more than one period or for an entire year, then unacceptable cost fluctuations arise from settlement period to settlement period, which affects the prices. Since you have to post the costs in CO by period, the accrual calculation is used to avoid these fluctuations.

accrual order

An object for monitoring period-based accrual between expenses posted in Financial Accounting component (FI) and accrual costs debited in Controlling component (CO).

You can distribute expenses from FI as accrued costs over multiple periods.

You create the associated accrual cost element with cost element category "Accrual cost element/overhead" or "Accrual cost element/ target=actual."

Example

Vacation and holiday bonuses calculated in Cost Center Accounting (CO-OM-CCA). The SAP System debits these costs to the corresponding cost center and credits them to an accrual order.

accrual type

An identifier for an accrual unit that describes and controls a posting transaction.

For the accrual type, you make settings for calculating amounts per accrual unit, as well as for account assignment.

accrued costs

The costs that are not categorized as a business expense (additional costs), or costs that are valuated differently or distributed across periods differently in cost accounting than in Financial Accounting (valuation differences).

acquisition and production costs

The upper limit for valuation of an asset in the balance sheet.

For external acquisitions, acquisition costs include all expenses for the acquisition including incidental acquisition costs, minus reductions to the purchase price.

Incidental costs include:

• Freight charges
• Forwarding costs
• Commissions
• Costs for building a foundation, and so on

Reductions in purchase price can be:

• Rebates
• Cash discounts
• Bonuses
• Price reductions because of defects
• Subsidies granted by a third party, and so on

For in-house acquisitions, production costs include:

• Direct and indirect costs, including materials handling overhead
• Direct labor costs, including payroll overhead
• Special production costs
• Fair administrative expense (can be included)

acquisition list

A report listing all the asset acquisitions for a specific period.

acquisition tax

An acquisition tax is due on the cross-border movement of goods and services within the European Union.

Acquisition tax must be applied by the receiving party at the local rate (but can also be posted as input tax). Any company that is entitled to reclaim input tax does not ultimately pay acquisition tax. When the incoming invoice is posted, the tax amount is posted both as a payable and as a receivable on the tax account.

Acquisition tax is calculated on the base amount of the invoice when it is issued (at the latest, on the 15th day of the month following the month when the goods or services were acquired (In Germany, at the end of this month.)

The tax rates vary between Member States, but correspond to the standard domestic rates in each country.

acquisition year

The fiscal year in which the asset acquisition took place.

action in repairs processing

An activity performed on a serviceable material in repairs processing.

Actions are represented in the repair order as sub-items of the repair request item. Actions include:

• Repair item for managing repairs
• Loaner item for sending temporary replacements to the customer
• Debit memo item for billing for services performed
• Scrap item for recording that a serviceable material is irreparable and must disposed of

active account

A credit account with Orbian.

It is used to post:

• Incoming Orbian Credits, which a company has received from its customers for payment
• Outgoing Orbian Credits, which a company has used to pay its vendors
• Any applicable fees and charges associated with an Orbian transaction

Every Orbian Member has at least one active account per currency with Orbian.

activity input

A business transaction for planning secondary cost quantities of a receiver cost center that uses activity from a sender cost center.

activity input planning

A tool for assigning sender outputs to receivers, such as:

• Cost centers
• Orders
• Business processes
• Work breakdown structure elements

activity output

The creation of a planned credit record for the sender cost centers using an allocation cost element.

This occurs during activity price planning.

activity type

A unit in a controlling area that classifies the activities performed in a cost center.

Example

Activity types in production cost centers are machine hours or finished units.

activity type category

An indicator that determines how an activity type is allocated.

An activity type can be allocated using the following methods:

• Directly
• Using predistribution of fixed costs
• Indirectly (inverse computation of activities)

If it is not allocated, the activity quantity produced is entered on the sender cost centers.

activity type group

An organizational unit to combine several activity types.

activity type planning

A tool for planning the activities to be produced by a cost center.

Also used to plan the following:

• The price with which the activity is to be valuated for allocation purposes
• The capacity to be made available for the output of the activity type

actual cost splitting

The distribution of the actual costs of a cost center to its activity types.

actual costing

An alternative to standard cost accounting, enabling you to assign the costs incurred in the period directly to your materials.

Actual costing in the R/3 System is based on materials that are valuated with a preliminary standard price and then revaluated with the difference between the preliminary price and actual cost.

Each time a transaction is run that is relevant to valuation (such as a goods receipt, invoice receipt, or production order settlement), the system records the preliminary standard price and the variances against that price (such as price differences and exchange rate differences). At the end of the period, you can assign these variances to the material inventories and consumption of the previous period across multiple production levels. The resulting material valuation is based on the periodic actual values.

actual costs

A cost consisting of the total debits made to a cost object.

actual costs

The costs actually incurred.

actual credit

The actual credit of a cost center, business process, or order:

• In Overhead Cost Controlling (CO-OM), the actual credit is calculated by multiplying the actual activity quantity by the allocation price.
• In Cost Object Controlling (CO-PC-OBJ), the actual credit is equal to the amount credited to the order based on the goods receipts.
• In the latter example, if the price control indicator in the material's master record is set to S, and the standard price has not been changed, the actual credit equals the target credit (target credit = quantity delivered x standard price).

If the price control indicator in the material's master record is set to V, the actual credit is the actual activity quantity multiplied by the price selected according to the valuation variant (such as the moving average price).

The difference between the target credit and the actual credit is called the output price variance. In variance calculation, actual credits do not contain credit amounts that are based on settlements.

actual debit

The actual credit is the value with which an object is actually credited.

In Cost Object Controlling, actual credits can result from material withdrawals, activity allocations, and overhead expenses.

actual input quantity

The actual quantity of materials and activities used to produce a material, including work in process and scrap.

actual profit

The profit actually earned from the difference between actual revenues and actual costs.

actual quantity structure

An actual quantity structure is created from goods movements and the associated flows of actual quantities, and is based on procurement alternatives and procurement processes.

It is used for multilevel material price determination in actual costing.

actual results analysis

An analysis on actual outcome data.

actual revenue

The revenue actually received.

In Cost Object Controlling, the actual revenue can be updated to the sales order items and internal orders that can carry revenue. This enables the SAP System to calculate data such as the profit for each cost object.

actual scrap quantity

The quantity of scrap actually incurred in an operation.

actual version

A version that enables multiple sets of actual data for the same object.

ad hoc cost estimate

A cost estimate in Easy Cost Planning for which you do not need to create an object with master data in the SAP System.

ad valorem tax rate

The taxation of any object as a percentage of its value.

This is by far the most common way of levying tax.

Example

Most forms of value-added tax are ad valorem, for example, in the United Kingdom, where the standard VAT rate is 17.5%.

additional account assignment

The entries in a line item that are made in addition to account number, amount and posting key.

These can include:

• Payment terms
• Payment method
• Cost center

additional costs

A cost not classifiable as a business expense and which, therefore, may not be reported in financial accounting.

Example

• Imputed owner's wages
• Imputed rent

additional excise duty

A form of excise duty, in India, levied on a select range of products, for the most part, textiles.

additional expenses for meals

The cost of additional meals is calculated from the actual expenses incurred by the employee for meals, including value-added tax but minus household savings.

additional ledger

A definable ledger used for evaluation and reporting purposes.

An additional ledger records values and quantities at company code or company level.

additional tax

A tax posted in addition to tax on sales or purchases.

This may be investment tax, clearing tax or tax postings necessary under the postponed accounting system used in the Benelux countries.

additional travel expenses

The receipts that do not belong to the classifications:

• Travel costs
• Meals
• Accommodation

additional value days

A number of days that can elapse after the billing date before the terms of payment become effective.

additional version

An actual version that is stored in addition to the operational version.

Additional versions let you store data concurrently using multiple valuation methods.

additive cost

A material-based cost that you can enter manually in the form of a unit cost estimate and then add to an automatic cost estimate with quantity structure.

additive cost estimate

A material cost estimate in which you can enter costs manually in the form of a unit cost estimate, so that the manual costs can be added to an automatic cost estimate with quantity structure.

address list

A list of addresses to which a direct mailing is sent.

The addresses are selected according to selection criteria that you define.

address list version

A list of addresses selected according to selection criteria.

Selection criteria include:

• Customer criteria
• Contact person criteria
• Private addresses
• Business addresses

You can create several versions for one direct mailing campaign. There are editing functions that you can use on the versions. This provides flexibility for creating the final mailing list for the direct mailing. The version used as the mailing list is called the standard version. Other versions are known as additional versions.

adjustment

An additional posting for one or more business transactions that have already been posted, such as in tax adjustment.

adjustment account

A profit and loss account that collects the reconciliation postings between the Controlling (CO) and Financial Accounting (FI) components in the reconciliation ledger.

You can create these accounts with any amount of detail to display in FI the postings made across company code or business area boundaries, according to:

• Debit or credit
• CO transaction
• Object class

adjustment charge

An additional debit posting to one or more business transactions already posted, such as in a tax adjustment amount.

adjustment method

The way that you adjust a G/L account for inflation.

You can either:

• Adjust each line item on the account separately (this is known as the line item method)
• Adjust the account balance only (the balance method)

adjustment to net income

An adjustment to net income occurs when a posted entry between accounts in the income statement and balance sheet leads to an imbalance in these financial statements.

The system calculates the discrepancy, and then posts an automatic balancing adjustment. The type of entry depends on how retained earnings are handled:

• When stating the appropriation of retained earnings at the end of the income statement, an adjustment to retained earnings occurs.
• When stating the appropriation of retained earnings in the balance sheet, an adjustment to annual net income occurs.

adjustment to net income

An adjustment to net income or retained earnings occurs when posting between accounts in the income statement and balance sheet leads to an imbalance in these financial statements.

The SAP system calculates the discrepancy, and then posts an adjusting entry. The type of entry depends on how retained earnings are handled:

• When stating the appropriation of retained earnings at the end of the income statement, an adjustment to retained earnings occurs.
• When stating the appropriation of retained earnings in the balance sheet, an adjustment to annual net income occurs.

advising bank

A bank that advises an exporter of a letter of credit or bank that sends the original letter of credit to an exporter.

affecting net income

The changes made to the financial statements, particularly as a result of postings or currency translation, can lead to a change in the annual net income.

affiliated company

The parent and subsidiary companies in a subgroup are known as affiliated companies (also known as members of a consolidation group).

AFM number

A tax number assigned, in Greece, to legal persons. It is the principal number used by companies to identify themselves in transactions with the tax authorities.

The VAT registration number is the same as the AFM number, but is prefixed with EL. In Greek, the tax number is known as arithmos phoroaogikoy metrooy.

aggregate level

A level in reporting that shows the costs of the upper level, plus the costs of the lower level.

aggregate state

The state of a hazardous material after it has been placed in storage.

Each aggregate state is noted in a file.

aggregation

The summation of the scheduled quantities for a scheduling agreement item within a time period to arrive at a total quantity for each period.

The type of aggregation and the period are controlled by the creation profile. The periods for the aggregation can be defined as follows:

• Daily
• Weekly
• Monthly
• According to planning calendar

Example

In a time interval of 15 workdays, there is one schedule line for each day covering a quantity of 10 pc in each case. The creation profile specifies that schedule lines are to be aggregated weekly. The result of the aggregation process is three aggregate schedule lines of 50 pc each.

agreement

A contract with the customer that is defined in the system.

Agreements can be defined:

• In the customer master record - for example, dates of required payments
• In an individual document - for example, customer-material information, contracts
• As a group of conditions that only apply to one specific customer - for example, rebate agreement or sales deal

agriculture duty

A duty levied for agricultural merchandise or for certain processed products based on special regulations.

air waybill

A type of bill of lading used for air transport.

Air waybills are not negotiable and are consigned to a company or person.

allocated actual costs

A credit of:

• Cost centers and business processes from activity allocations
• Orders from goods receipts (actual credit) and settlements

allocation

The process of assessing or distributing amounts and quantities from one sender object to one or more receiver objects - for example, from one cost center to multiple cost centers.

allocation base

A measure for the cause of costs.

Allocation bases are used in the SAP System whenever output is measured, recorded, and allocated.

allocation category

An indicator that determines how activity quantities are planned and allocated.

There are the following allocation categories:

• Allocation category 1 (manual entry, manual allocation)
• Allocation category 2 (indirect determination, indirect allocation)
• Allocation category 3 (manual entry, indirect allocation)
• Allocation category 4 (manual entry, no allocation)

allocation cost element

A cost element used to illustrate activity allocation in terms of values.

allocation structure

A tool that allocates the costs incurred on a sender by cost element or cost element group.

The allocation structure is used for settlement and for assessment.

An assignment assigns a cost element or cost element group to a settlement or assessment cost element. Each allocation structure contains a number of such assignments.

The allocation structure must meet the following criteria:

• Completeness -

For a settlement or assessment to be executed correctly, the allocation structure must represent all cost elements under which costs are incurred.

• Unambiguity -

There must be only one cost element in an allocation structure.

alternative material cost estimate

A cost estimate for a material that is not the standard cost estimate used to calculate the standard price of the material.

The modified standard cost estimate and the current cost estimate are alternative material cost estimates.

alternative payee

The recipient of a payment other than the creditor to which the payable is due.

alternative unit of measure

A unit of measure defined in the SAP system in addition to the base unit of measure.

Examples of alternative units of measure are:

• Order unit
• Sales unit
• Unit of issue

alternative value

An amount determined when an exception situation occurs when the system attempts to determine the LIFO or FIFO value.

When the stock on hand of a material to be valuated exceeds the total quantity received, the following options are available to provide an alternative value:

• Material price
• Price from last FIFO valuation
• Recalculation of FIFO price
• No valuation

amendment

A proposed change to a letter of credit.

amortization

The process of reducing the value of intangible assets by spreading the costs over the useful life of the asset.

This can also be achieved by making a value adjustment on the balance sheet key date.

From a consolidation point of view, the amortization of goodwill during the first consolidation is relevant.

Typically, the procedures for amortization are governed by external regulatory bodies.

amortization of intangible assets

The process of reducing the value of intangible assets by spreading the costs over the useful life of the asset.

This can also be achieved by making a value adjustment on the balance sheet key data.

From a consolidation point of view, the amortization of goodwill activated during the first consolidation is relevant.

Typically, the procedures for amortization are governed by external regulatory bodies.

For example, German trade law uses an annual amortization rate of 25% as a default.

amount

A figure in the pricing procedure that determines how the system calculates a condition value.

Depending on the condition type, the amount can be expressed as an absolute value or as a percentage value.

amount due to customs

An amount due customs authorities as a result of importing or exporting merchandise.

Annex I goods

Goods that fall under the Common Agricultural Policy (CAP) and are listed in the Annex I List.

A unique CAP products list number is assigned to each goods item in this list. Exporters in the EU receive 100% of the restitution rate set for these goods and do not need to provide a manufacturer's recipe.

application area

A key used only in Contract Accounts Receivable and Payable to denote those application components used and enhanced by FI-CA.

Application areas are stored in every major dataset in FI-CA, enabling data to be processed on an application-specific basis. Examples of application areas are the application components for the insurance, utilities or telecommunication industries.

application form

A company-specific page layout for customer notifications or internal work orders (for example, bill for non residential customer, meter reading by customer).

The application form is based on a form class, such as bill or meter reading order.

apportionment method

An apportionment of the total costs of the joint production process to the primary products.

The costs of the individual primary products may vary. They are apportioned by means of an apportionment structure.

apportionment of follow-up costs

The automatic retrospective assignment of price differences to cost objects.

apportionment structure

A definition of how the total cost of a material is apportioned to the individual co-products.

appropriation of retained earnings

The appropriation of retained earnings is a systematic statement that shows the relationship between the annual net income and the retained earnings of a company or consolidated group.

Companies that represent legal entities disclose the appropriation of retained earnings, stating

• The retained earnings carried forward from the prior year
• The distributions of dividends or earnings to the shareholders of the company
• Other transfers or withdrawals of retained earnings to or from the appropriations accounts

In practice, retained earnings statements are, in part, not prepared for non-legal entities or consolidated groups. The Consolidation system, nevertheless, requires at least a simplified appropriation of retained earnings using dedicated Financial Statements (FS) items for each company.

The appropriations of each company are combined to form the appropriations of retained earnings for the entire group (also called the group appropriation of retained earnings). Additional items can be used during this process to state the changes in minority ownership.

The appropriation of retained earnings can either be integrated on the balance sheet or be stated as an addendum to the income statement:

• In the first case, an FS item at the end of the income statement discloses the transfer of the annual net income to the balance sheet.
• In the latter case, the transfer item is located at the end of the retained earnings statement and states the retained earnings.

The method used affects the retained earnings item on the balance sheet, as well as the balance to be carried forward.

approved manufacturer parts list

A list in which MPN materials are assigned to a firm's own materials taking into account the manufacturer, the plant, a validity period, the revision level, and any reasons for blocking the use of the materials concerned.

archiving category

The memo records that are no longer valid can be stored in archiving categories.

area of responsibility

An organizational unit that defines and controls corporate goals.

You can define areas of responsibilities in order master data and in project master data.

arrangement calendar

A calendar specifying the validity periods of rebate arrangements and their planned settlement dates.

arrival

The movement of inbound goods in your trading area.

Example

In Europe, INTRASTAT deals with "arrivals" and "dispatches" within the Eurpean Union customs territory (economic zone). EXTRASTAT deals with "imports" and "exports" from one customs territory to another, that is, into or out of the European Union.

arrival time

Time when the goods are scheduled to arrive at the customer location.

Based on the customer's goods receiving hours, the system proposes the earliest possible time as the arrival time.

assembly order

A request to assemble pre-manufactured parts and assemblies to finished products according to a sales order.

assessable value

The value of goods that you have manufactured in-house as assessed by an authorized auditor, in India.

This value is used as the base value for calculating excise duty.

assessment

A method of internal cost allocation by which you allocate (transfer) the costs of a sender cost center to receiver CO objects (such as orders and other cost centers) under an assessment cost element.

The method works according to the keys defined by the user. The SAP System supports the following:

• Hierarchical method (where the user determines the assessment sequence)
• Iterative method (where the SAP System determines the sequence) cost centers in proportion to the statistical key figure "employees" for each cost center.

assessment

A business activity used to allocate quantities and amounts (actual and plan values) from one sender object to one or more receiver objects.

The assessment process posts the sender amounts to an assessment account. The SAP system then allocates the amounts from the assessment account to the receiver(s) - not directly from the original sender account.

assessment cost element

A secondary cost element for costs that are assessed between Controlling objects.

Asset Accounting

A subsidiary ledger accounting module in Financial Accounting.

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

asset acquisition

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 catalog

A classification grid that classifies fixed assets by technical criteria.

The asset class catalog classifies assets from a business and legal point of view, and in a similar way (sample master record method) the asset catalog classifies master data by branch-specific, technical criteria.

asset class

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 class catalog

The catalog that contains all the asset classes for an enterprise.

The asset class catalog, therefore, is valid for an entire client. However, there are certain parameters of the asset class that can be specified at the level of the chart of depreciation (for example, the depreciation key).

asset component

A part of a fixed asset.

You can create asset components or sub-assets to manage complex fixed assets. These asset components are represented by sub-numbers of the main asset number.

asset document

An accounting document that provides information on transactions within a company code that are relevant to Asset Accounting.

Asset Explorer

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 fiscal year change

The exact time at the beginning of a new fiscal year at which transactions for that year should start being processed.

The prior fiscal year does not already have to be closed. You can still post in the prior fiscal year.

To open the new fiscal year, you run the asset fiscal year change program, which opens a new fiscal year for Asset Accounting. The running of the program updates the cumulative value fields for assets, and opens new value fields for the current fiscal year.

asset goods receipt

An asset acquisition posting integrated with the SAP Materials Management component.

asset group

A grouping of several fixed assets that belong together, typically based on their related functions.

An asset group can have its own master record. In reports, you can display the fixed assets that belong to the asset group together.

asset history report

A special report that enables you to archive master data and value development of particularly important assets in the form of a hard copy (asset chart).

You can define the structure of the report and the information that it provides by using layout sets that are specifically designedfor particular asset classes.

asset history sheet

A list displaying the progress of a fixed asset´s history from its opening balance through to the closing balance, by means of:

• Acquisitions
• Retirements
• Transfers
• Accumulated depreciation

asset line item

A line item that provides a detailed audit trail of the development of the amounts displayed in an asset.

A line item is created for each transaction for each depreciation area where posting takes place. The line item contains the:

• Transaction type
• Asset value date
• Amount posted
• Depreciation and interest from the transaction
• Proportional accumulated depreciation, if applicable

asset portfolio

The total value of all fixed assets intended for permanent use within a company.

The asset portfolio is shown as a balance sheet item. In gross reporting, the current asset portfolio is calculated from the difference between the balance sheet account for acquisition and production costs and the balance sheet account for accumulated depreciation.

asset purchase order

The integrated posting of a purchase order to an asset using the SAP Materials Management Purchasing component.

If you are using the SAP Purchasing component, you can already make account assignment to a fixed asset when posting a purchase order or purchase requisition.

The SAP system maintains the asset number (to which initial account assignment was made) in the goods receipt document through to the invoice document, which then triggers an acquisition posting to the asset master record.

asset subnumber

A unique number, that in combination with the main asset number, identifies an asset in the SAP System.

Using the asset subnumber, you can represent complex fixed assets in the SAP system.

The fixed asset is identified by the main asset number. Each individual part of the asset, or subsequent acquisitions, can be represented by a subnumber. You have to enter separate master data for each subnumber.

asset transfer

A transaction in which a group company sells one of its assets to another company in the same subgroup.

asset type

A classification for fixed assets in the balance sheet.

Special asset types used include:

• Movable assets
• Operating facilities
• Land and buildings
• Assets under construction
• Low-value assets
• Intangible assets

The asset type is not a separate object in the FI-AA component. You represent an asset type by defining the features of an asset class.

asset under construction

A fixed asset that is in the process of being completed at the time the balance sheet is being produced.

Typically, assets under construction are shown as a separate balance sheet item for the enterprise. Assets under construction can be managed for bookkeeping purposes in the FI-AA component using asset master records in special asset classes.

To also benefit from management accounting functions that go beyond the asset accounting level, you can use capital investment measures in the Investment Management component. Investment measures can be managed in the form of internal orders or projects.

asset value date

The value date of an asset transaction from the asset accounting point of view.

The asset value date can be different from the posting date and document date, and can be in accounting periods that are already closed.

However,the year of posting and the transaction year must be identical.

asset view

A means of assigning the fields and asset processes that are required for a given workplace.

At the same time, the asset view prevents undesired access to asset accounting data from other departments.

There is a predefined asset view for the following user groups:

• Asset accountant
• Management accounting
• Taxes
• Purchasing
• Technical
• Insurance
• Employee
• Manager

You can modify these views. No additional views can be defined in the SAP system.

asset year-end closing

The cut-off date after the end of the fiscal year.

The asset year-end closing program checks all the data for the old fiscal year and blocks the year to changes up to this date.

The year-end closing program checks the following:

• Complete posting of all asset values in the general ledger
• Complete posting of all depreciation
• Adherence to all rules for net book value

assets

The sum of a company´s assets and prepaid or deferred items.

These are displayed on the left-hand side of the balance sheet.

assignment concept

A term under which line items are grouped, or assigned to each other.

assignment control

A method in Controlling for displaying the relationship between the controlling area and the company codes.

Assignment control is supported by the indicator CoCo->COAr, which takes either value 1 or 2:

• Value 1 -

The company code is assigned to only one controlling area.

In this case, the company code, controlling area, currency, chart of accounts, and the number of posting periods must agree in every respect.

• Value 2 -

Costs are managed on a cross-company-code basis.

In this case, you may assign multiple company codes to a controlling area and can select the controlling area. The chart of accounts and the number of posting periods must agree within the controlling area and the assigned company codes. Currencies may differ if the indicator "Variant company code currency" is active.

associated company

An associated company is an internal trading partner that can be influenced significantly by the parent companies within the subgroup.

Typically, significant influence exists when the immediate parent company has an accumulated investment portion of 20 - 50%.

assortment

Grouping of material combinations and quantities frequently ordered.

When entering a sales order, the user can refer to and copy information from a product proposal. Or the system automatically proposes items previously established in the product proposal for a particular customer.

ATC

An alphanumeric tax code used to classify taxes on tax returns used in the Philippines.

In the R/3 System, ATCs are represented by official withholding tax keys.

ATR document

A goods movement certificate that for preferential treatment for goods that are transferred between the European Community and Turkey.

Audit Information System

An auditing tool aimed at improving the quality of audits.

The Audit Information System consists of an audit reporting tree and is a structured, preconfigured collection of SAP standard programs.

audit trail of posted records

An audit trail is a specific detailed report describing the activity and completion of a process - for example, a data entry form containing data.

It can also be a reference accompanying an entry, or posting, to an underlying source record or document.

authorization

An affirmative response from the clearing house forwarded to the merchant to permit a card transaction.

authorization number

A number assigned by the clearing house and sent to the merchant as confirmation of an authorization.

authorized amount

The amount approved by the clearing house.

authorized consignee

A party permitted to receive shipped goods.

To simplify the completion of a shipping procedure, based on Article 406 DVO, authorization can be given to ship goods directly to the receiving company and to carry out customs processing at that location.

authorized consignor

A party granting permission to ship goods.

Customs procedures can be simplified by authorizing shippers to complete export declarations for submission to the customs authorities (Art. 398 DVO) at their place of business.

authorized partner

A party permitted to release against a contract.

Automated Export System

A system used by exporters to electronically file the Shipper's Export Declaration (SED).

Using AES, exporters can file all export shipment data required by several US government agencies. Creating a paper SED is not necessary when reporting exports with AES.

AES replaces Automated Export Program (AERP), phased out on December 31, 1999.

automatic debit transfer

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 dialing

The automated initiation of telephone calls in a call center.

Automatic Payments Centre payment code

A unique three-character code that the Automatic Payments Centre (APC) of the Hongkong Bank assigns to its customers for each set of payment or collection orders.

automatic posting

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.

auxiliary packaging materials

Materials used with other packaging matieral to ensure that requirements for safely packaging materials are met.

These auxiliary packaging materials include equipment, safety and protective packaging. Auxiliary packaging materials can be packaging materials but cannot be used as load carriers. Auxiliary packaging materials include lids, foil, lining, and anything used to wrap or protect materials.

availability calculation

A comparative analysis of warehouse stocks, planned receipts and planned issues on a certain date by Material Requirements Planning.

An order proposal is generated if a shortage (stock undercoverage situation) is detected.

availability check

A stock check that is run automatically after each goods movement and which is intended to prevent the book inventory balances of physical stock categories (such as unrestricted-use stock) from becoming negative.

availability control

An internal active funds controlling system that can identify possible budget underruns or overruns when funds are being committed in respect of transactions assigned to projects.

average balance ledger

An additional ledger assigned to a direct posting ledger that inherits the attributes of the direct posting ledger (such as the fiscal year variant, the table that the direct posting ledger uses).

The average balance ledger stores the average balances per period. It can be used only for reporting purposes and displaying records. It cannot be used for:

• Planning
• Allocation
• Rollup processes

average delivered price

A procedure for balance sheet valuation that can be used to obtain an objective comparison price for lowest value determination.

average rate

A settlement exchange rate used in foreign exchange transactions.

It is the arithmetic mean between the bank buying rate and bank selling rate.