Tag: FICO

Invoices with 3-Way Match in SAP MM-LIV (Part 2)

In part one of our three part series, we explored the business process and it’s execution in SAP for three way match. In this second part, we’ll work through one way of managing variances for logistics invoices. There are two core approaches that can be used for managing variances. In this article, we’ll use the […]

Invoices with 3-Way Match in SAP MM-LIV (Part 1)

One challenge often faced in accounts payable is how to handle variances in the three way match when posting invoices. SAP has a very robust process for ensuring that invoices are matched against the PO and GR. In this three part series, first, we’ll review the business process and how SAP enables it. Second, we’ll […]

Performing GL Conversions (part III)

In the previous two articles on SAP GL conversions, we discussed the process of GL conversions, journal entry flows, and how to handle reconciliation accounts. In this final article, we’ll look at a couple pain points and keys to success that arise in SAP GL conversions. Currencies In the GL, there is usually more than one currency […]

House Bank Accounts in SAP FICO

House Bank Accounts (HBAs) in SAP are often configured incorrectly during an implementation. This improper configuration causes problems later when additional sub modules such as Electronic Bank Statement (EBS), Cash Forecasting, and Check Reconciliation are brought into scope. In this article, we explore how House Bank Accounts connect to physical bank accounts, some key settings, and common […]

Performing GL Conversions Correctly (part II)

In my previous post, I discussed the basic process for performing GL conversion. In this post, we’ll turn it up a notch and explore the basic journal entry flow as well as examine a few cases of how to handle subledger accounts such as the AP and AR reconciliation accounts. Journal Entry Flow One of the defining features […]

Performing GL Conversions Correctly (part I)

GL Conversion Process (ETL)

It amazes me that GL conversions go so wrong so often. The recipe is straightforward and if the legacy data is good enough, there is rarely an excuse to have trouble during GL conversions. Yet, I’ve seen quite a few go off track. So in this series of posts, I’d like to talk about the […]

SAP Fixed Assets Organization Structure

Asset Balances By Class (Excel)

The SAP fixed assets (FI-FA) module has a unique organization structure to enable accurate reporting for multiple purposes. First, each asset must be valued properly for financial reporting purposes. If multiple standards are being used, such as US GAAP and IFRS, then each of these values must be tracked. Second, assets must be valued properly […]

Currencies in SAP FI

Currency Types in SAP FI

Understanding currency types in SAP FI is critical for both users and consultants. If a user does not understand the currency types, then they will book entries wrong. If the consultant does not understand them, then serious valuation problems can result. Consider the following: We have a Mexico affiliate of a US corporation that is […]