Finance Accounting

Finance accounting functions operate over the central database of accounting operations which is constituted by particular accounting processes and used for the purposes of financial reporting. These functions promote a flexible definition of account classification structure.

The general ledger is integrated with subsidiary ledgers of claims and liabilities, and register of fiscal assets. Posting to subsidiary ledgers is always accompanied by a parallel record to the general ledger. Such type of solution does not require operating redundant files of accounting data, guarantees automatic matching of books of accounts, facilitates and achieves efficiency in consolidation of book-keeping information.

Dataflow among general ledger, subsidiary ledgers and other mySAP Business Suite modules is ensured by automatic update in real time.

The major advantages of finance accounting are the following:

·        Updating of general and subsidiary ledgers in real time;

·        Free use of currencies (table of exchange, corporation currency, transactions currency, syndicate currency by consolidation, etc.);

·        Verified support of transition from local currencies to the euro;

·        Multiple free-definable accounting allocation;

·        Automatic bookkeeping (leasing, rental, open-item matching, etc.);

·        Change tracking, book principles;

·        Open items administration of selected processes (control accounts, commissions, risks, etc.);

·        Integration of purchase and sale agenda with purchase or sales ledger, promotion of assets purchase;

·        User defined depreciation plans, each with up to 99 depreciation areas;

·        All kinds of national and international depreciation methods (technical appreciation, accelerated depreciation, full depreciation, straight-line method of depreciation, etc.);

·        Direct transmission of depreciation write-offs and other values to the cost side of the controlling;

·        Extended proprietary record of assets (insurance, asset value, leasing, land register, etc.);

·        Complete standard reporting and flexible reporting (dynamic allocation, reporting options), user generator of statements, arrangements and analyses (Quick Viewer, Report Painter, etc.).

Finance accounting applications include the following functions:

·        General ledger;

·        Active debts;

·        Liabilities;

·        Tangible and intangible assets;

·        Bank statement administration;

·        Bookkeeping of cash transactions;

·        Stock accounting;

·        Tax accounting;

·        Bookkeeping on accrual basis;

·        Tools achieving efficiency in account balancing;

·        Financial reports;

·        Parallel assessing.

General Ledger

General ledger supports all functions required from a finance accounting system, secures accuracy and actuality of all accounting data.

General ledger involves variable structuralization of account classification at the level of a segment or company. It also secures contemporaneous updating of subsidiary ledgers with the general ledger in real time; it avoids time-consuming reconcilement, and enables parallel data display both in the general ledger, and in other respective applications. Origin of the data stored in the general ledger can be tracked at any time by tracing their creation in a particular transaction. General ledger promotes cash register (including cash vouchers and cash book), preliminary acquisition of documents (by means of which authorizing process of purchase-invoice liquidation is executed; for more details see further), document release, posting, display, change, integrated financial schedule for routine activities (balancing processes, leasing-instalment payment schedule, rent schedule, etc.). General ledger enables parallel bookkeeping in foreign and Czech currency as well.

There is also an account-off balance sheet which is a part of the general ledger. It enables to administer non-accounting filing, e. g. rented fiscal assets (leasing, expired leasing up to a certain value), stocks contracted as safekeeping, advertising materials, strictly accountable forms, etc.

General ledger creates a data base for finance balancing statements (balance and statement of income) in conformity with valid book-keeping standards. Special claims posed on bookkeeping can be executed by the form of so called extended general ledger with flexibly defined book-keeping key of particular entries, by transformation of book-keeping entries according to user requirements, by different fiscal periods, etc. Extended general ledger enables to create statements according to US GAAP, HGB, IAS, and other accounting standards.

 

Active Debts and Liabilities (Subsidiary Ledgers of Suppliers and Consumers)

 

The application of subsidiary ledgers of suppliers and consumers provides financial survey of global partnership business relations (all in and out invoices, credit notes, advances, bills of exchange, etc.).

The module utilizes standard business rules for procedures concerning data input and statistical returns systems as well as processing of payments and banking transactions.

Function of active debts and liabilities bookkeeping also include integration of the Internet, document administration, full support of EDI processing including lock-box processing, integration with cash management, and flexible statistical returns system with utilizing information systems for both – customer and supplier. In this area, the module also enables flexible payment reminders, penalization, in-house credit management using workflow integration, automatic payments via electronic transfer and cheque processing, preliminary document provision with different authorizing procedures. The system involves a range of automatic charging (exchange differences, heller differences, automatic balancing, VAT charging, etc.) which result in speeding up and facilitating of user operation.

 

Book-balancing Formation

 

Application for the balancing of books promotes preparation of all required managerial and statutory statements in conformity with the legislation as well as with US GAAP and IAS international accounting standards. Statements of finances are prepared through processing of transaction data recorded in the general ledger. The user is also given an option to prepare statements of finance based on aggregate data stored in the data warehouse.

Except general legislative regulations which the applications involve, the legislative statements are in conformity with public notices of Ministry of Finance in particular.

·        Act number: č. 535/2002 Sb. (16/2001) about the way, terms and range of the data presented to assess the adherence to the state budget, state funds budgets, and budgets of municipal funds;

·        Act number: č. 477/2003 Sb. (505/2002) about bookkeeping for accounting entities which embody municipalities, allowance organizations, state funds, and organizational state bodies.

The solution flexibility enables the users to react swiftly to changing standard requirements in the areas of both statutory and managerial statistical returns system. Due to the integration with other mySAP Business Suite applications it is possible to execute so called “drill-down” from the level of a statement up to the level of a source system transaction within the analysis framework.

The application supports the financial-auditing process at all levels – from the level of financing statements to the level of particular source documents.

The applications for the book-balancing formation have the following key features:

·        Automatic matching of information in the working scheme and ledger;

·        Effective tools for preparing customer-tailored statements;

·        Flexibility enabling solution configuration to meet the requirements of Czech and international accounting standards and tax law; 

The applications for the book-balancing formation have the following crucial functions:

·        Tools enhancing efficiency of balancing operations;

·        Balance, income statement, and enclosure setting;

·        Setting of cash flow sheets;

·        Book-keeping information about segments;

·        Notes;

·        Parallel assessing;

·        Balancing of books according to CAS;

·        Balancing of books according to IAS;

·        Balancing of books according to US GAAP.