BPI Quiz 1 Study Guide with Complete Solutions

BPI Quiz 1 Study Guide with Complete Solutions Define Company code - Answer-you establish a new company (or in real life a GBI legal entity) located in the US. this company is represented in SAP by a "company code importance of a company code - Answer--the new company code is the basis of financial accounting and will eventually include the GL and sub-GLs. -it will serve as the source for US tax and legal entity reporting. -your company code is assigned to exactly one country (US), on base currency (USD), and one language (ENG) -all your future work (configuration and testing) will be done in your company code Define Business Area - Answer-Financial statements for your Company Code are structured based on Business Areas. Large firms - with diversified products - have more than one Business Area, but GBI operates with only one Business Area (## Bikes) In a later step, you will associate this Business Area with GBI's Plants and Divisions to allow meaningful financial statements for each Business Area. EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024 Page 2/7 Define Empty Chart of Accounts - Answer-(eventually be associated with your Company Code) In later steps you will populate this empty Chart of Accounts with actual General Ledger account numbers, names, and control information. Maintaining Control Area - Answer-(this will eventually be associated with your Company Code) a Mgmt Accting entity that rolls up all Cost Accting data from a Company Code. Larger firms can roll up many Company Codes into one Controlling Area. This allows firm management to have one view of Cost Accounting data across multiple legal entities. Define Credit Control Area - Answer-(eventually associated with your company code) the organizational unit that manages the firm's customers' credit limits -larger firms can roll up many company codes into one credit control area. this allows the firm to manage a global customer's credit across geographic boundaries Define Variants for Open Posting Period - Answer-(this will eventually be associated with your Company Code) This Variant identifies the General Ledger posting periods that can be used during a fiscal year. In this step, you create an empty Variant (GL##). In a later step you will define this Variant to include 13 posting periods per fiscal year. EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024 Page 3/7 Define Field Status Variants - Answer-You will copy and rename a Field Status Variant and its related Field Status Groups from Company Code US00. In a later step, you will associate this Field Status Variant (GL##) with your Company Code. Your Field Status Groups (Expense Account, Balance Sheet Account, etc.) guide the user experience during General Ledger document entry. (ex) the Field Status Group determines which fields are required, which fields are optional, and which fields are hidden during General Ledger document entry. Explain Entering Global Parameters - Answer-You will enter global parameters for your Company Code's financial accounting processes. This is an important step that: • associates many of the entities created in previous steps (Chart of Accounts, Credit Control Area, Field Status Variant, Open Posting Period Variant) to y