Process Reference Models  -  Industry Best Practices

What is Account to Report (A2R)?

The Account-to-Report (A2R) domain covers general ledger accounting, asset accounting, overhead cost controlling, product costing and period end closing activities. It also includes accounts receivables and accounts payables, as well as financial planning and budgeting, treasury, credit management, and tax accounting.

We have structured the Account-to-Report (A2R) domain in three views:

Process groups,

E2E process flows, and

Value flows.

Process groups offer a functional view of Finance and Controlling (FI/CO) processes, while E2E process flows show the sequence of FI/CO processes and interfaces with operational processes. Value Flows depict financial postings and how they are derived from operational processes.

Process Groups

Account-to-Report (A2R) process groups are structured into 17 functional areas:

  • General Ledger

  • Accounts Receivable

  • Accounts Payable

  • Credit Management

  • Tax Accounting

  • Asset Accounting

  • Project Accounting

  • Treasury - Bank Accounting

  • Treasury - Financial Instruments

  • Treasury - Risk Management

  • Treasury - Cash and Liquidity Management

  • Finance Reporting and Analytics

  • Intercompany

  • Financial Planning and Budgeting

  • Financial Compliance

  • Overhead Cost Controlling

  • Product Cost Controlling

Scenario Clusters

Account-to-Report (A2R) process flows are structured into 6 different clusters. Each cluster comprises several E2E processes flows.

E2E Process Flows

The E2E process flows show how Finance and Controlling processes interface with processes from the various operational streams e.g. Sales, Procurement, Production. For instance, we capture the process flow for A2R Customer invoice clearing as follows:

Value Flows

Value Flow representation enriches process documentation by establishing cross references between key Value Flow topics within a business such as COGS, inventory and revenue postings, and the various instances and related E2E scenarios. Our Value Flow approach facilitates the marriage between value creating processes and their Finance & Controlling requirements.

For further information on value flows and our value driven business transformation framework please watch our video podcast.

Planning and Budgeting

  • Integrated financial planning

  • Periodic budgeting

Financial accounting

  • Customer invoice clearing

  • Vendor invoice clearing (Purchase order based)

  • Vendor invoice clearing (without purchase order reference)

  • Intercompany invoice clearing

  • Credit / Debit memo processing AR

  • Credit / Debit memo processing AP

Controlling

  • Production cost controlling

  • Product cost controlling

  • Cost center planning and allocation

  • Internal order processing

Internal projects

  • Intercompany projects

Periodic closing

  • Period end closing

  • Financial consolidation

Supporting activities

  • IDOC monitoring

 
 
 

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