Accounting Flow

1.
2.
3.
4.
5.
6.

Business transaction
Journal- Business transaction is recorded
General ledger and post entries
Trial balance Balance of G/L
Profit &Loss account
Balance sheet

Golden Rules Accounting

Real- DR- What comes in / CR- What goes out
Nominal- DR- All the expenses and losses / CR- All gains and income
Personal- DR- the receiver / CR- the giver

1. Salary paid for 10000 via cash

Salary a/c DR 10000
To Cash account
2. Mobile bill paid via bank RS15000
Mobile Bill DR 15000
To Bank 15000
3. Rent paid via cash 12000
Rent DR 12000
To Cash 12000
4. Commission paid via bank 3000 and via cash 4000
Commission paid DR 7000
To bank account 3000
To Cash account 4000
5. Interest received via bank 9000
Bank a/c DR 9000
To Interest received 9000

6. Commission received via cash for 8500

Cash a/c DR 8500
To Commission received 8500
7. Goods sold for 6000 to Ram and received money via cash
Cash a/c DR 6000
To Goods a/c 6000
8. Good purchased for 9000 from Shyam and paid via bank
Goods DR 9000
To Bank a/c 9000
9. Goods sold to MR Ram 9000 on credit- Credit Sales Invoice- 9001
Ram a/c DR 9000
To Goods-CR 9000
10.Goods purchased from Shyam for 7000 on credit
Goods DR 7000
To Shyam 7000
11.Received money from Ram 6000
Cash DR 6000
To Ram account 6000
12.Received money from Ram for 3000
Cash DR 3000
To Ram account 3000
13.

Goods purchase on credit from MR X for 8500

Good a/c DR 8500

To MR. X
14.Paid Mr.x 8500 via bank
MR.X- DR 8500
To bank a/c 8500

Assets
Liabilities
Income
Expenses

Credit Sales Process

Mr.X- DR
1000- -500 customer

- Accounts receivable- Reconciliation account-

To Credit sales account

Payment -

800 transactions- 150 customers- 50 not paid

Cash DR
To MR.X CR-

Accounts receivable

Credit Purchase Process

Credit Purchase account DR
To MR.Y

Accounts Payable

MR. Y DR
To Cash account

Sales of furniture
Cash a/c DR
To Furniture

Accounts payable

SAP
Systems Applications Products In data Processing
SAP- ERP
ERP- Enterprise resource planning

MM
PP
SD
FI
HR
MM+PP= MRP1MM+PP+SD= MRP2
MM+PP+SD+FI= SAP
MM+PP+SD+FI+HR= SAP

Functional- MM PP SD FI HR
Technical- BASIS ABAP
FI
Financial accounting- External reporting purposeGeneral Ledger
Accounts receivable
Accounts Payable
Bank
Asset accounting

CO- Controlling

Internal reporting purpose- Management accounting + Cost accounting

ABC
P1- 10
P2-20
P3-30
36000 USD
FI-Salary a/c DR 36000
To Bank account
Co- P1- 10/60*36000=6000
P2- 12000
P3- 18000
Cost center
Profit center
Internal orders
Product costing
CO-PA
FI-MM- Purchase cycle
ReportsMonth and year end
New G/LEnterprise Structure
Organizational Units
Client-Business Area- CCA
TATA CompanyTCS Company code
TATA Steel
Business Area

TATA Motors

Delhi
Mumbai
Bangalore
Chennai
DEV
Sandbox-110
Golden Client- 100- Transport request- TR
DEV TEST-120
QA
UAT/TEST-900
PRD
PRD Client-900
Consolidated Business Area
Delhi + Mumbai = North CBA
Bangalore + Chennai= South CBA
Credit Control area- Client level
CCA1-100000- TCS- TM
CCA2-200000-TS
Definition
1.
2.
3.
4.
5.

Define
Define
Define
Define
Define

Company
company code
Business area
consolidated BA
Credit control area

Assignment
1. Assign company code to company
2. Assign company code to credit control area
3. Assign business area to consolidated BA