Professional Documents
Culture Documents
Prerequisites
Prior to attending this course, you should have attended or completed the following:
SAP Basic Navigation
Course Agenda
Introduction Learning Objectives Overview General Ledger Overview General Ledger Accounts Profit Center Park/Post Journal Entries Accruals Recurring Journal Entry Reports Month End Process
Introduction
Training Instructors
Housekeeping Breaks Restrooms
Introduce Yourself
Name Department History with AOI Class Expectations
Ground Rules
Be mentally engaged Assume best intentions when dealing with conflict Remain open minded Respect each others time including punctuality, scheduling and communication Be respectful in our use of electronics One person speaks at a time with the attention of all Offer input; everyone has value to add Understand what is being said, or ask for clarification No side conversations; its distracting and excluding Leave mental baggage at the door Enforce all ground rules Share all relevant information within the allotted time and park other ideas for later Be Positive!
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Project Overview
SCOPE OF PROJECT
Shop Floor
Back Office
Finished Good Inventory Management Sales Order to Cash cycle Logistics Finance / Accounting Treasury Tax Consolidation Planning Dec 08 Argentina & Guatemala 6 May 09 Asia & Africa Aug 09 Europe
Aug 08 US
Finance Overview
Other Modules
Finance
Other Modules
Controlling (CO)
Accounts Payable
Banks
Accounts Receivable
General Ledger
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Perform SAP Transactions related to G/L Accounting Run Reports related to G/L Accounting
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Course Components
Concepts Demonstrations Exercises Task support
Work instructions Context sensitive help Participant guides
Evaluation
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FI
CO
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FI Account Integration
Generate standard reports
General Ledger
Automatic Postings
Manual Postings
Reverse Documents
Held Documents
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Organizational Units in FI
The Client
The client is the highest hierarchical level in the SAP System. Specifications that you make or data that you enter at this level are valid for all company codes and for all other organizational structures. Each client is a self-contained unit with separate master records and a complete set of tables.
The Company
A company is the smallest organizational unit for which legal individual financial statements such as balance sheets and profit and loss statements can be created according to the respective commercial legislation. A company can include one or more company codes. The financial statements of a company are also the basis of a consolidated financial statement.
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Organizational Structure
FI/CO - Organizational Structure
CLIENT
CHART OF ACCTS CHART OF ACCTS
CONTROLLING AREA
CONTROLLING AREA
COMPANY CODE
COMPANY CODE
COMPANY CODE
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Terminology
Company Code Smallest organizational unit of external accounting for which a complete, self-contained set of accounts (COA) can be created. Similar to what is now considered a legal entity.
Chart of Accounts A framework of GL accounts for the recording of values to ensure an orderly rendering of accounting data. The operational chart of accounts is used by financial accounting and cost accounting. The items in a chart of accounts can be expense or revenue accounts in FI and cost or revenue elements in cost accounting. Each company code is assigned to a chart of accounts.
Profit Center An organizational unit in Accounting used for Controlling purposes. Similar to what is now considered an origin.
Cost Center An organizational unit that represents a defined location of cost incurrence. Similar to what is now considered a department.
Customer Master Customer data that includes addresses, account balances, and credit limits that are maintained centrally to prevent duplication.
Vendor Master
Vendor data that includes addresses, payment details, and account balances of all vendors with which AOI conducts business. Vendor master records are centrally maintained to prevent duplication.
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Terminology (Cont.)
Posting Key A two-digit numerical key that determines the way line items are posted. This key determines several factors including the account type, type of posting (debit or credit) and layout of entry screens.
Account Group Used to categorize accounts that have similar master data requirements. It determines the required master data needed for creating G/L accounts. It also determines the number range in which the customer account should be placed, and whether that number is to be assigned by the user or by the system.
Ledger In G/L Accounting, you can use several ledgers in parallel. This allows you to produce financial statements according to different accounting principles, for example.
Fiscal Year Variant A period as defined by the financial calendar. The fiscal year variant contains the number of posting periods in the fiscal year and the number of special periods. You can define a maximum of 16 posting periods for each fiscal year in the Controlling component (CO).
Posting Period Variant You can specify which company codes are open for posting in a posting period variant. Posting period variants are cross-company code and you have to assign them to your company codes. The posting periods are then opened and closed simultaneously for all company codes via the posting period variants.
Reconciliation Account Summary account for subledgers such as Accounts Receivable, Accounts Payable, and Asset Accounting. No direct postings to reconciliation accounts are allowed.
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Terminology (Cont.)
Cost Element A cost element classifies the organization's valuated consumption of production factors within a controlling area. A cost element corresponds to a cost-relevant item in the chart of accounts.
Primary Cost Element A cost element whose costs originate outside of CO and accrual costs that are used only for controlling purposes.
Open Item Management A stipulation that the items in an account must be used to clear other line items in the same account. Items must balance out to zero before they can be cleared. The account balance is therefore always equal to the sum of the open items.
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Organization Data
Company Code Chart of Accounts
Master Data
General Ledger Master Record Vendor Master Record Customer Master Record Profit Center Cost Center
Transactional Data
Journal Entry Vendor Invoice Document Reversal Credit Memo Customer Invoice Closing
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Changing Processes
Current Process
Manual Entries are posted directly (in some locations)
Chart of Accounts: Local accountants will not be able to create new accounts. A request will have to be made to the master data administrator at a central location.
Some countries dont currently require an account number and cost center on a purchase order.
It is a requirement for an account number and cost center to be entered in a purchase order.
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known as
The account group specifies the account number range and determines the account field layout (Required, Optional or Suppressed) Company code-specific data include the:
Currency type and indicator Tax information Reconciliation account type 31
Name
The G/L Account Number is included in both sections of the master record
Acct Management
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Currency
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Chart of Accounts
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Parallel Accounting SAP breaks the GL Account structure into 3 different fields:
Company Code: 4 digits Formerly called Financial Entity GL Account: 7 digits Cost Center: 10 alphanumeric characters Represents the department that is responsible for the cost
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Company Code
6424000
GL Account
10103601US
Cost Center
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Parallel Accounting
In SAP, each GAAP (Generally Accepted Accounting Principle) is represented by a ledger. Except for the Brazil, all the countries (company codes) will have two ledgers for accounting transactions. (Brazil will have three ledgers).
Leading ledger i.e. local GAAP, general local (financial) year Non leading ledger i.e. US GAAP and fiscal(financial) year
All the transactions will be made to leading ledger and will automatically be flowed to non-leading ledgers. However, for any adjustment for local requirements all countries will post to only non-leading ledgers through specific transactions. All the ledgers are also capable of providing reports in Group currency or any other additional currency.
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Profit Center Accounting enables internal profit to be calculated for profit centers. It generates a balanced and complete Balance Sheet and Profit and Loss Statement for each Profit Center. It also compares the overall period costs of the company or profit center with the revenues and internal activities for the same period. It allows real-time evaluations, reporting and analysis on posted plan and actual data.
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Cost Center Accounting Cost Center Accounting is utilized to collect and report operating activity within an organizational unit. A cost center is essentially a department within the company Cost centers represent a distinct and separate accounting unit and may be organized by area of responsibility, location, or activityrelated aspects Each cost center is assigned to the Controlling Area CAOI Cost centers can be structured into multiple alternate hierarchies, according to organizational/functional aspects The cost center is the lowest level of the hierarchy expenses are rolled up to superior levels Cost Center Accounting covered in detail in the AOI Cost Center training course
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Cost and Revenue Element Accounting provides you with an overview of the costs and revenues that occur in an organization. Cost elements describe the origin of costs. Cost Elements are at the center of all the transactional activity in Controlling. Each posting in Controlling is linked to a Cost Element and at least one controlling object , such as a cost center or an internal order or a WBS (work breakdown structure) element. Cost element are also links to the General Ledger in FI module as no primary cost element can exist without its General Ledger account first being created in FI.
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Demo
Ex
Enter & Park G/L Account Document for Ledger Group Parked Documents Post/Delete Clear G/L Account F-03 FB08 FBV0
Reversal Document for Individual Reversal Display G/L Account Balances (New)
FAGLB03
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General Ledger Account Posting (Journal Entry) For manual journal entries, you enter your document header data (document date, document type, company code, posting date, and currency) and data for the individual line items. The following two functions are available: Enter & Park G/L Account Document Enter & Park G/L Account Document for Ledger Group These are both single-screen transactions, meaning that you can enter, hold and park documents on one screen with a minimum amount of entries. Manual journal entries (G/L Account Postings) will be done using the Park and Release Process
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AOI will use this transaction to create and and park G/L account documents For G/L Account Postings, you enter your:
Document header data, which includes document date, document type, company code, posting date, and currency Data for the individual line items
Demonstration
Task Exercise
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Input G/L Account from Chart of Accounts Select Debit/ Credit Indicator Input amount Input cost center
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Enter and Park G/L Account Document for Ledger Group (FV50L)
AOI will use this transaction to enter and park G/L account documents for a ledger group. Demonstration and Exercise
Use the work instruction Enter and Park G/L Account Document for Ledger Group to complete the exercise scenario on the system
Demonstration
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You can also post or delete parked documents in this transaction. If you know the document number, enter the company code, document number, and FY. If you do not know the document number, click the Document List box. On the selection screen that follows, enter the appropriate selection criteria and choose Execute. The system then generates a list containing the documents that match these criteria. From there you can select the required document(s) and Delete. Make sure to Save!
Demonstration
Task Exercise
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The SAP System offers the following procedures for accounts with open item management:
Posting with clearing Manual account clearing
The following prerequisites must be fulfilled in order for open items to be cleared:
The accounts must be managed on an open item basis. The items to be cleared cannot trigger a posting, for example, cash discounts or exchange rate differences. The items cannot be special G/L transactions. You use special functions to clear these items.
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Clear G/L Account (F-03) In this transaction, you can only clear open items from one account. You can use this function to clear debits and credits that balance to zero (for example, invoices and payments that you have already entered). Result: The system assigns the clearing date and clearing document number to each open item cleared. Demonstration and Exercise
Use the work instruction F-03 Clear G/L Account to complete the exercise scenario on the system Refer to your data sheets for appropriate data Demonstration Task Exercise
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Reversing a Document
There are times when a manual journal entry that has been previously posted needs to be reversed. This can occur for a variety of reasons such as to correct data entry errors, accruals, etc. The main reason for doing a reversal is that some data field (such as G/L account, cost center, vendor, customer) was entered incorrectly. If you have entered an incorrect document, you can reverse it, thereby also clearing the open items. However, AP invoices can't be reversed once they've been paid. Instead of User A creating another manual journal entry to reverse the posted entry (which must then be parked, until approved and posted by User B), the previously posted entry can just be reversed. Only a user that is authorized to post a journal entry can reverse a journal entry.
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Demonstration
Task Exercise
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Demonstration
Task Exercise
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Accruals
An accrual entry is created to record expenses incurred in the current period, which will not be paid until the next period Accruals are performed for reporting purposes so that period profits can be accurately calculated After an accrual is created in SAP, the Reverse Accrual Documents transaction is performed, at the beginning of the next period, to reverse the accrual which was posted when the expense was incurred Accruals do not automatically reverse in the following period The accruals are reversed with a batch job running the first day of every month as part of the month end process The reversal date of the accruals should always be the first day of each month The document type xx has been created for accrual postings
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Freight Accruals
Freight accrual will be made from the shipment cost document Different scenarios where AOI will pay the freight for a sales order
Customer may ask AOI to pay the freight on their behalf and bill them on the invoice for the sale Freight cost is an AOI expense and will be paid by AOI The freight cost is not known at the time of shipping and its a customer cost
The decision as to whether or not to accrue freight will be made on the terms of sale. The accrual for freight will be based on a shipment cost condition type which identifies the account numbers. The amounts to accrue will be based on freight rates and shipping points, which will maintained by OTC.
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SAP Tasks General Ledger Accounting Other Posting Processes Process (T-Code)
Create/Change Recurring Document Entry (FBD1/FBD2) Posting Recurring Entries Execute (F.14) Posting Recurring Entries Lists (F.15) Automatic Clearing of Accounts (F.13)
Demo
Ex
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Recurring Journal Entries will be exactly the same each time Recurring Journal Entries are not posted to the system on creation, but stored as a transaction to be posted at specific intervals Recurring Journal Entries can be posted during the month-end closing process or during periodic processing Recurring Journal Entries cannot be used for cross-company transactions If necessary, a recurring document entry can be reversed using transaction FB08.
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Recurring Journal Entry (Cont.) Change recurring documents Similar to changing any other document, except that you can also change the amounts in the individual line items and the recurring posting data Delete recurring documents You must set the deletion flag in the header You can display recurring documents: To be carried out in a particular period Not to be carried out in a particular period To be carried out during the next run of the recurring entry program
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Recurring Journal Entry Periodic Processing Once the necessary information has been entered, the next step is to use transaction F.14 to manually create posting documents from recurring documents.
Document and posting dates are the same as the settlement period It is not possible to execute the same settlement run twice The settlement period has to agree with the frequency defined at the time the recurring document entry is entered
The third step is to use transaction F.14 to post the recurring Journal Entry into the SAP system
Only at this point the document is posted in SAP
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Demonstration
Task Exercise
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Posting Recurring Entries - Execute (F.14) Create Posting Documents from Recurring Documents This transaction is used to post recurring documents. The program selects any recurring entry document whose next run data is the same as the date of the settlement period and creates a batch input session. To post the accounting documents and update the recurring entry documents, you have to process the batch input session created by the program.
Demonstration
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Posting Recurring Entries - Lists (F.15) Use this transaction to view recurring entry original documents, when there is a requirement to view recurring entries for a Company Code. Recurring entries are set up to be posted in regular intervals in the future. This process provides the ability to generate a list of all such entries that have been set up. This list can be used to identify changes to amounts or accounts needed as well as a checklist to make sure all such entries are posted at the right time.
Demonstration
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Automatic Clearing (F.13) Automatic Clearing is used clear open items from customer, vendor and G/L accounts automatically. This applies to GR/IR clearing accounts in particular. It selects all accounts specified in the value sets that have debit and credit postings. Only documents with a matching debit and credit will be cleared.
Demonstration
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Reporting
There are a variety of standard SAP reports which can be run on-line or printed To run a report it is necessary to set the report parameters on the initial screen and then execute it to run it on-line With most reports, it is possible to drill-down on the individual line items and access the document entry screens which generated the postings
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Reports
Reports
B/S P & L
Balances
Line Items
Document/Transaction
Original Document
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Reports
FAGLB03 Display Balances (New) FAGLL03 Display/Change Line Items S_PL0_86000028 Financial Statement Actual/Actual Comparison S_PL0_86000029 Financial Statement Plan/Actual Comparison S_PL0_86000031 - Transaction Figures: Account Balance S_PL0_86000032 - Structured Account Balances S_ALR_87012394 - Record of Use and Sales Taxes (USA) S_ALR_87012301 - Totals and Balances S_ALR_87012293 - Display of Changed Documents
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Reports (contd)
S_AC0_52000887 - Receivables: Profit Center S_AC0_52000888 - Payables: Profit Center S_ALR_87012346 - Recurring Entry Documents S_ALR_87012347 - Line Items Extract S_PL0_86000031 - Transaction Figures: Account Balance S_PL0_86000032 - Structured Account Balances S_ALR_87012326 - Chart of Accounts S_ALR_87012328 - G/L Account List S_ALR_87012317 - Open Item Account Balance Audit Trail from the Document File
Please refer to the month end cycle course materials for a list of all activities required to close a period
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Summary
You now have an understanding of the important concepts and activities that are used in SAP General Ledger Accounting. Now you should be able to perform the following tasks: Display General Ledger Account Master Data Perform specific SAP FI-G/L transactions such as creating/parking journal entries Describe the concept of parking documents and utilizing the function Create and maintain recurring documents Reverse journal entries Display G/L account balance and line items Run various SAP reports related to G/L Accounting
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2. Super-users
Super-users will be identified from each department or location to help you with your daily tasks after go-live.
3. Help Desk
Submit Help Desk Ticket to local IS Help Desk via phone or e-mail
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Thank You!
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