Handout2

Handout2 - Reporting SEC etc These reports give a...

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Reporting – SEC etc These reports give a consistent view of the company’s financial health. There are two types of audiences: Internal and External. Internally: The employees who run the company. This gives them the information needed to make decisions. Externally: Anyone who has a financial stake in the company. This could be shareholders, creditors, government (taxes, fraud, etc.) insurance companies, or anyone who would like to purchase shares of the companies stock. The Financial Accounting (FI) application component fulfills all the international requirements that must be met by the financial accounting department of an organization. It provides the following features: Management and representation of all accounting data All business transactions are recorded according to the document principle, which provides an unbroken audit trail from the financial statements to the individual documents. Open and integrated data flow Data flow between Financial Accounting and the other components of the SAP System is ensured by automatic updates. Data is available in real time within Financial Accounting. Postings made in the sub ledgers always generate a corresponding posting in the general ledger. Preparation of operational information to assist strategic decision-making within the organization General Ledger Accounting Purpose The central task of G/L accounting is to provide a comprehensive picture for external accounting and accounts. Recording all business transactions (primary postings as well as settlements from internal accounting) in a software system that is fully integrated with all the other operational areas of a company ensures that the accounting data is always complete and accurate. Accounts Receivable Account Receivables application component records and administers accounting data of all customers. It is also an integral part of sales management. All postings in Accounts Receivable are also recorded directly in the General Ledger. Different G/L accounts are updated depending on the transaction involved (for example, receivables, down payments, and bills of exchange). The system contains a range of tools that you can use to monitor open items, such as account analyses, alarm reports, due date lists, and a flexible dunning program. The correspondence linked to these tools can be individually formulated to suit your requirements. This is also the case for payment notices, balance confirmations, account statements, and interest calculations. Incoming payments can be assigned to due receivables using user-friendly screen functions or by electronic means such as EDI and data telecommunication Accounts Payable The Accounts Payable application component records and administers accounting data for all vendors. It is also an integral part of the purchasing system: Deliveries and invoices are managed according to vendors. The system automatically makes postings in response to the operative transactions. In the same way, the system supplies the Cash Management application component
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Handout2 - Reporting SEC etc These reports give a...

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