AC050--Introduction to Financial Accounting
1.Introduction to Financial Accounting
2.Organizational Structures for Financial Reporting
*A Group Company or Company or Trading Partner is the smallest organizational unit for which individual financial statements must be drawn up according to the relevant commercial law. The Group Company represents the legal entity.
*A company code is an independent accounting entity (the smallest organizational element for which a complete self-contained set of accounts can be drawn up).
*Each Company Code may be assigned to a Group Company.
*The business segments, or branches, in which a group operates can be set up in the SAP system as business areas.Business areas are generally company-code independent; that is, you can make postings to them from any company code.
*A Profit Center can represent many things:
.An organisational unit within the business e.g. a Plant
.A line of business
.A geographical location
*Segments may also be used as a dimension for reporting purposes as with Profit Centers and Business Areas.
*The Controlling Area is the most important organizational element in the Controlling application.
*More than one company code can be assigned to one or more controlling areas.However, assigning more than one company code to the same controlling area is possible only if all the assigned company codes use the same operating chart of accounts and have the same fiscal year variant.
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