What is income statement by function of expense in SAP (SRD-FIN-ACC - FIN-Financial Accounting)?

SAP Term: income statement by function of expense

• Component: SRD-FIN-ACC

• Component Name: FIN-Financial Accounting

• Description: A form of income statement reporting that classifies expenses according to their function as part of cost of sales. The function of expense method is required for reporting based on US GAAP.

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• Key Concepts: 
  Income statement by function of expense is a financial report in SAP that provides a detailed breakdown of expenses by their respective functions. This report is generated from the SAP SRD-FIN-ACC FIN-Financial Accounting component. It is used to analyze the cost structure of a company and to identify areas where costs can be reduced. 
  
  How to use it: 
  To generate an income statement by function of expense, first log into the SAP system and navigate to the SRD-FIN-ACC FIN-Financial Accounting component. From there, select the “Income Statement by Function of Expense” report. Enter the desired date range and click “Generate Report”. The report will then be generated and can be viewed or printed. 
  
  Tips & Tricks: 
  When generating an income statement by function of expense, it is important to ensure that all expenses are included in the report. This can be done by selecting the “Include All Expenses” option when generating the report. Additionally, it is important to ensure that all expenses are categorized correctly so that they can be accurately analyzed. 
  
  Related Information: 
  For more information on generating an income statement by function of expense in SAP, please refer to the SAP Help documentation at https://help.sap.com/viewer/product/SRD_FIN_ACC/FIN/en-US.