Define Economic

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lient: In commercial, organizational and technical terms, a self-contained unit in an R/3 System

with separate master records and its own set of tables.

Company Code: 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.

Business Area: An organizational unit of financial accounting that represents a separate area of

operations or responsibilities within an organization and to which value changes recorded in

Financial Accounting can be allocated.

Enterprise structure: A portrayal of an enterprise’s hierarchy. Logical enterprise structure,

including the organizational units required to manage the SAP System such as plant or cost

center. Social enterprise structure, description of the way in which an enterprise is organized, in

divisions or user departments.The HR application component portrays the social structure of an

enterprise

Fiscal year variant: A variant defining the relationship between the calendar and fiscal year. The

fiscal year variant specifies the number of periods and special periods in a fiscal year and how

the SAP System is to determine the assigned posting periods.

Fiscal Year: A period of usually 12 months, for which the company produces financial statements

and takes inventory.

Annual displacement/Year shift: For the individual posting periods various entries may be

necessary. For example, in the first six periods the fiscal year and calendar year may coincide,

whereas for the remaining periods there may be a displacement of +1.

Chart of Accounts: Systematically organized list of all the G/L account master records that are

required in a company codes. The COA contains the account number, the account name and

control information for G/L account master record.

Financial statement version: A hierarchical positioning of G/L accounts. This positioning can be

based on specific legal requirements for creating financial statements. It can also be a self-

defined order.

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.

Field status group: Field status groups control the additional account assignments and other

fields that can be posted at the line item level for a G/L account.

Posting Key: A two-digit numerical key that determines the way line items are posted. This key

determines several factors including the: Account type, Type of posting (debit or credit),Layout

of entry screens .

Open item management: A stipulation that the items in an account must be used to clear other

line items in the same account. Items must balance out to zero before they can be cleared. The

account balance is therefore always equal to the sum of the open items.

Clearing: A procedure by which the open items belonging to one or more accounts are indicated

as cleared (paid).

Reconciliation account: A G/L account, to which transactions in the subsidiary ledgers (such as

in the customer, vendor or assets areas) are updated automatically.

Special G/L indicator: An indicator that identifies a special G/L transaction.Special G/L

transactions include down payments and bills of exchange.

Special G/L transaction: The special transactions in accounts receivable and accounts payable

that are shown separately in the general ledger and sub-ledger.

They include:

• Bills of exchange

• Down payments

• Guarantees

House Bank: A business partner that represents a bank through which you can process your own

internal transactions.

Document type: A key that distinguishes the business transactions to be posted. The document

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

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

Dunning procedure: A pre-defined procedure specifying how customers or vendors are dunned.

For each procedure, the user defines

• Number of dunning levels

• Dunning frequency

• Amount limits

• Texts for the dunning notices

Dunning level: A numeral indicating how often an item or an account has been dunned.

Dunning key: A tool that identifies items to be dunned separately, such as items you are not sure

about or items for which payment information exists.

Year-end closing: An annual balance sheet and profit and loss statement, both of which must be

created in accordance with the legal requirements of the country in question.

Standard accounting principles require that the following be listed:

• All assets

• All debts, accruals, and deferrals

• All revenue and expenses

Month-end closing: The work that is performed at the end of a posting period.

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lient:?In commercial, organizational and technical terms, a self-contained unit in an R/3 System with separate master records and its own set of tables. Company Code:?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. Business Area:?An organizational unit of financial accounting that represents a separate area of operations or responsibilities within an organization and to which value changes recorded in Financial Accounting can be allocated. Enterprise structure:?A portrayal of an enterprise's hierarchy.?? Logical enterprise structure, including the organizational units required to manage the SAP System such as plant or cost center. Social enterprise structure, description of the way in which an enterprise is organized, in divisions or user departments.The HR application component portrays the social structure of an enterprise Fiscal year variant:?A variant defining the relationship between the calendar and fiscal year. The fiscal year variant specifies the number of periods and special periods in a fiscal year and how the SAP System is to determine the assigned posting pe ...
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