SAP Financial Accounting (FI) Bootcamp

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Course Objectives
• Provide overview of SAP Financial Accounting (FI) functionalities and integration with other modules • Introduce FI Organisation structure, master data, business transactions, and reporting • Provide hands-on experience with basic FI business transactions • Provide hands-on experience with basic FI configuration • Share SAP project experience
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Agenda – Day 1
• Course Introduction • Financial Accounting • General Ledger – Master Data • Enterprise Structure • General Ledger – Business Transactions & Open and Cleared Items

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Operating Group. Location – Your SAP FI Bootcamp Objective(s) 4 .Ask questions! – Learn From Everyone’s Comments – Please Turn Off Cellular Phones – Honor Time Schedule – Relax and Have Fun! • Introduce Yourself – Name.Course Introduction • Ground Rules – Participate .

Reference Material • Reference Material – SAP Familiarisation Guide • SAP Navigation Assistance – SAP Quick Reference Guide • Provides transaction codes and description – SAP Table Structure Overview 5 .

Course Agenda • Financial Accounting • General Ledger • Bank Accounting – House Banks • Accounts Receivable • Accounts Payable • Bank Accounting – Electronic Statements • Asset Accounting • New GL Online Document Splitting • Integration with Other Modules • Case Studies Day 1 Day 1/2 Day 2 Day 2 Day 3 Day 3 Day 4 Day 4 Day 5 Day 5 6 .

xml 3100 Design Application 7 .accenture.com/finder/Scenarios/homepage/m_accentured eliverymethods.asp#sap_group.How This Course Fits in ADM • Where does the course fit in Accenture Delivery Method (ADM) for SAP? https://methodology.

Course Overview (1 of 5) • Financial Accounting – Overview • General Ledger – General Ledger – Master Data − Enterprise Structure − General Ledger – Business Transactions & Open and Cleared Items − General Ledger – Period End Closing & Reporting • Bank Accounting − House Bank/s 8 .

Course Overview (2 of 5) • Accounts Receivable − − − − − − Key Concepts Organisation Structure Master Data Configuration Business Transactions Reporting and Conversion Tips 9 .

Course Overview (3 of 5) • Accounts Payable − − − − − − Overview Master Data Invoice Processing Payment Processing Reporting and Conversion Tips Withholding Tax • Bank Accounting − Electronic Bank Statement 10 .

Course Overview (4 of 5) • Asset Accounting − Key Concepts & Organisation Structure − Master Data − Business Transactions − Period End Closing & Reporting • New GL Online Document Splitting 11 .

Course Overview (5 of 5) • Integration with Other Modules − Overview − Integration with Material Management (MM) − Integration with Sales and Distribution (SD) − Integration with Controlling (CO) • Case Studies • Course Closing 12 .

Agenda – Day 1 • Course Introduction • Financial Accounting • General Ledger – Master Data • Enterprise Structure • General Ledger – Business Transactions & Open and Cleared Items 13 .

SAP Solution Map Source: SAP AC010: Financial Accounting & Reporting 14 .

At the end of a fiscal year all accounts in the P&L are reset to zero with the profit/loss transferred to equity in the balance sheet – Tax Reports – BAS statements – Other reports include Company cash flow 15 . Liabilities and Equity (value) of a company – Profit and loss statement – reports revenue. expenditure and profit/loss made year to date.FI and Statutory Reporting • What is Financial Accounting (FI)? – The module in SAP used to support financial statutory reporting of legal entities • What is included in statutory reporting? – Balance sheet – reports the Assets.

budget  CO 16 .. Company Balance Sheet (B/S). Department expenditure actual vs. Profit and Loss (P&L) and tax reporting  FI • What is the CO module used for? – CO is used for internal company reporting (e.g. Controlling (CO) • What is the FI module used for? – FI is used for reporting a company’s financial position and activity to statutory bodies and other external parties • For example. • For example.Financial Accounting (FI) vs. showing what areas/departments within the company are making money and where the money is being spent (controlling expenditure)).

Financial Accounting (FI) vs. format and structure of CO reports are determined by the company • All financial reporting must adhere to standard Accounting practices and principles 17 . format and structure of reports in FI • The content.) • Legal requirements dictate content. Controlling (CO) (cont.

e.g. material stock balances. if applicable. It is used to produce legal financial statements and other statutory reports. P&L transactions are posted through to CO. 18 . they are totalled and rolled up into one account (reconciliation account). customers.. The list of customer accounts (AR) is then a sub ledger of the general ledger.General Ledger and Sub Ledgers (1 of 3) • The general ledger is a list of account balances for a specific company. work orders and capital projects. then. • Where it is not practical to list all accounts of a specific category in the GL. fixed assets. Other sub ledgers are vendors (AP). • All accounting transactions relevant to a company are recorded in the General Ledger.

goods receipt 19 . e. All other reconciliation accounts need to be set up as post automatically only • All transactions from other modules that have a financial impact are integrated with the FI and CO modules. Material Management .g..General Ledger and Sub Ledgers (2 of 3) • Transactions posted to sub ledgers are automatically rolled up into the General Ledger reconciliation accounts • Customer (AR) and vendor (AP) reconciliation accounts cannot be posted to directly.

Machinery • Manage entire lifetime of assets and depreciation Detailed information about vendor/customer/asset Balance summary per account  Financial Statement 20 ..g..g.g..g.. 113000 A/R Trade • Manage accounting data for customer Asset Accounting Asset No e..g. 131003 Fixed Asset – Machinery 138003 Accumulated Dep. 5022 Welding machine Asset Reconciliation Accounts e. 50033 ABC Holding A/R Reconciliation Accounts e.General Ledger and Sub Ledgers (3 of 3) • GL and Sub Ledgers: Reconciliation Account Sub Ledger General Ledger Accounts Payable Vendor No e..g. 70042 XYZ Ltd A/P Reconciliation Account e. 211000 A/P Trade 3rd Party • Manage accounting data for vendor/supplier Accounts Receivable Customer No e.

Example: FI Integration • FI Integration Example – Purchase to Pay Mtrl Resource Planning Purchase Requisition Purchase Order Goods Receipt Invoice Verification Payment Module impacted PP Material Management Accounts Payable General Ledger Project System 21 .

History of SAP in the Marketplace Business Requirements Internal Business Process Focus Inter-Enterprise Co-operation Shared Business Scenarios Replace x Leverage Efficiency & Control Client Server Architecture Strategic Value Enterprise Services Architecture  mySAP ERP SAP R/3 Automation Mainframe Architecture Adaptable Business SAP R/2 Integrated Business Processes Advancement in Technology 22 .

Changes to SAP Financials in mySAP ERP with New GL Classic GL New GL 23 .

AP.Classic GL vs. and Banking have not changed. we will point out New GL functionality • Core concepts of Enterprise Structure. 24 . New GL • SAP’s R/3 Enterprise GL is now called Classic GL • Both Classic and New GL are available to our clients – You will have to be familiar with both of them • Throughout this course. Chart of Accounts. AR.

for customized reports) 25 .SAP Menu • We can add new nodes through the configuration (for example.

SAP Configuration • SAP Configuration – Implementation Guide (SPRO) 26 .

System Walkthrough 1. transaction codes. – Navigation for FI transactions within SAP Easy Access Menu and Implementation Guide (SPRO) – Structure of various transactions within the FI menu tree.1 – SAP Configuration • Refer to System Walkthrough 1.1 – SAP Configuration in your Faculty Guide. IMG keys – Login. use of icons. as needed 27 . and menus • Refer to SAP Familiarisation Guide.doc.

Questions 28 .

Agenda – Day 1 • Course Introduction • Financial Accounting • General Ledger – Master Data • Enterprise Structure • General Ledger – Business Transactions & Open and Cleared Items 29 .

etc.Core Concept s • Chart of Accounts – Sometimes referred to as the “what” – Describes the nature of an account – Examples: Sales. – Use multiple objects for different views (more later!!) • Together they provide the details required to meet the reporting requirements of the Enterprise. Consulting Expense. Accounts Receivable • Enterprise Structure – Sometimes referred to as the “where” – Describes “where” in the enterprise a transaction occurred – Examples: Accenture’s OG’s. 30 . SI&T.

tax procedure. currency.) are produced per company code • SAP company code configuration includes: – Defining the company code. A001. 0700) – Assigning country.Company Code: Basis of Enterprise Structure • Company code represents a legal entity of the organisation. P&L. chart of accounts. fiscal year. etc. 31 . language. • Financial statements and statutory reporting (B/S. an alphanumeric field of 4 characters (for example. taxation reporting. Configure one company code for each legal entity. posting period variant & field status variant Note: Company configuration is only required if consolidations is being used.

General Ledger – Master Data • • • • • Chart of Accounts Account Groups Retained Earnings Field Status Groups GL Master Data and Maintenance – – – – – – – – – Account Groups Field Status Groups Account Currency Tax Category Reconciliation Account Line item Display Open Item Management Automatic Posting Sort Key • • • • • • GL Account Maintenance FI Document Structure FI Document Header FI Document Line Items Document Number Range Tolerance Groups 32 .

an account for “maintenance labour” is incorrect. i.Chart of Accounts (1 of 4) • The Chart of Accounts (COA) is a list of all accounts used in the General Ledger. 33 . More accounts can be added for more detail and control • The COA is assigned to company code in company code parameters configuration • Accounts are only to represent the” what” not the “where and what”..e. B/S and P&L accounts • At a minimum the COA must have the accounts required to support the statutory reporting requirements and standard account practices. – For example. The where is captured in the Enterprise Structure. Account for “labour” is correct.

a standard COA.Chart of Accounts (2 of 4) • One chart of accounts can be used for > 1 company code. – The New GL functionality allows only one COA. 34 . i. it is recommended that each company use the same COA..e. – If an Organisation has multiple company codes. It ensures apples are being compared to apples when external and internal company consolidated reports are created.

3. a breakdown of each account class (1. G1 – Account group. a breakdown of each account group (1. etc. etc. 4. 2. etc. 3.Chart of Accounts (3 of 4) • Typical account structure C G1 G2 N N N C – Account class: 1 = Assets 2 = Liabilities 3 = Equities 4 = Sales 5 = Cost of Sales 6 = Expense.) NNN – sequential number 35 . 2. 4.) G2 – Subgroup.

– These two types of accounts are treated differently in the closing procedure: • For balance sheet accounts. the balance is carried forward to a retained earnings account and the P & L statement is set to zero. Profit & Loss represents financial data for a certain period.e. the balance is carried forward to the same account. Balance Sheet represents the Organisation financial data at any given time.. accumulative figure • For P & L statement accounts.Chart of Accounts (4 of 4) • Balance Sheet and Profit & Loss – There are two types of accounts in the GL master record: Balance Sheet accounts and P & L Statement accounts. i. 36 .

Account Group • Account groups are used to simplify report design and other processing. • Define Account Group .OBD4 – IMG Path: General Ledger Accounting>GL Accounts>Master Records>Preparations> Define Account Group Account Group is defined per Chart of Account Account range restriction can be defined or left blank 37 .

Retained Earning Account • Retained earnings account is assigned to each P&L account by specifying a P&L statement account type in the chart of accounts area of each P&L account • At the end of a fiscal year. You can define one or more P&L statement account types per chart of accounts and assign them to retained earnings accounts • Note: It is chart of accounts dependent 38 . the system carries forward the balance of the P&L account to the retained earnings account.

Field Status Group • Not all GL accounts require the same information to be collected for business transactions • Configuration of field status groups determines which fields are populated for which accounts • Screen layouts are the screens that users will see with selected fields available for use. • Determines the screen layout for document entry 39 . Different GL accounts may need a certain field that another set of accounts requires.

Field Status Group (cont.) • Fields can have the following statuses: • • • Optional entry – you can enter data in the field Mandatory entry – you must enter data in the field Suppressed – the field does not appear on the screen • Use – Enter the field status group in the master record of a GL account. the definitions stored for the group are effective • Dependencies – The field status when you create a document also depends on the posting key – The field status groups available are those grouped together in a field status variant and assigned to your company code 40 . When you enter a document.

GL Master Data Creation and Maintenance • GL accounts are split into two levels: Chart of Accounts level and Company Code level • Chart of Accounts level holds information that is valid for all company codes assigned to the Chart of Accounts while company code level setup is only applicable for the company code • Chart of Accounts level: – Account Number and Description – B/S or P& L account – Account Group 41 .

) • Company Code level: – Account Group – Field Status Group – Account Currency – Tax Category – Reconciliation account – Line Item Display – Open Item Management – Automatic Posting – Sort Key • GL accounts can only be used by company codes where the company code view has been created 42 .GL Master Data Creation and Maintenance (cont.

GL – Master Data (1 of 6) • Account group: Validates the number range and determines the screen layout (which fields are mandatory/optional/suppressed) when creating a GL account • Field status group: Determines the screen layout (which fields are mandatory/optional/suppressed) when the account is used in a transaction 43 .

Foreign amounts that are posted are converted to local currency – Foreign  Account can be posted to in ONLY the nominated foreign currency − Balance in Local Currency  determines whether a foreign exchange gain or loss will be posted when clearing in different currencies (must be an open item-managed account). Transaction figures will only be kept in local currency for the account that has this setting on 44 .GL – Master Data (2 of 6) • Account currency: Determines allowable currency for the account – Local  Account can be posted to in any currencies.

e. i. i. for example. assign to expense accounts) *  all tax types allowed – Posting without tax allowed option 45 . only input tax allowed (tax on goods bought. assign to revenue accts) .. S1  account should be posted with tax code S1 (Note: S1 is configurable) +  only output tax allowed (tax on goods sold.GL – Master Data (3 of 6) • Tax category: Determines allowable tax code for the account – Can be specific tax code or can be group of tax codes.e..

GL – Master Data (4 of 6) • Reconciliation account: Defines it as roll-up account from either AR. or asset sub ledgers and prevents it being posted to directly • Line item display: Allows the individual entries posted to the account to be displayed rather than just the account balance – System allows this setting to be changed. AP. however. line items will only be available for documents posted when the line item display is checked 46 .

i. Cleared items are a group of debit and credit entries that have been linked together as their total is zero.. Accounts with this option have each entry flagged as either open or cleared item. e.e. All clearing accounts need open item management switched on.. bank clearing – As long as the account has any balance.GL – Master Data (5 of 6) • Open item management: Used to help with reconciling an account balance.g. system does not allow this setup to be changed – Only applicable to balance sheet accounts – Line item display must also be activated on the account – Cannot be a reconciliation account 47 . has some accounting postings to it.

posting date.GL – Master Data (6 of 6) • Automatic posting: Accounts with this option could not be directly posted to that the postings should be generated automatically from sub-modules.e. reconciliation accounts • Supplement for automatic postings: Indicates line items that are generated automatically by the system for this account can be supplemented manually • Sort key: Determine default entries in the Assignment field for the account line items for additional reference/informational purpose – For example. i.. document date 48 .

GL – Accounts Maintenance • GL accounts can be blocked to prevent any journals being posted to it. conversion accounts • GL Mark for deletion is the flag used by the archiving run to determine which accounts are to be removed. it MUST have a zero balance • Blocking and mark for deletion can be set at the either the company code or COA levels 49 . If the account to be marked for deletion is a balance sheet account. if necessary .For example. It can be unblocked later on.

Can be used if it is desirable to have “intelligent” numbering 50 .The document number range is set up in the configuration as internally or externally/user defined .External numbering is not widely used because users need to keep track of the last number outside the system. The document will have unique number per fiscal year .FI Document Structure • Every transaction is recorded in at least one FI document.

e.FI Document Structure (cont..g..e. Each will have its own numbering and rules . i.) • FI document consists of header and line items Document header General data applicable to entire document Document line item • Debits and credits • Posted journal will have balanced debit and credit. MM document. CO document. debit amount = credit amount • Max 999 lines 51 Note: There are other documents in SAP. etc. SD document.

prevent entering a vendor in customer invoice 52 . Keep SAP standard where possible – Can control the type of accounts that can be used with that document type • For example.FI Document Structure: Header • Document type: – Used to identify the type of transaction for the benefit of searching. reporting and analysis Examples: DR DZ KR KZ SA Customer Invoice Customer Payment Vendor Invoice Vendor Payment GL Journal – Document number ranges are assigned in configuration per doc type.

FI Document Structure: Header (cont.) • Posting date: Determines the posting period the transaction is posted to • Document date: Identifies the date of the original document that is used as a basis of posting into the system.. the invoice issue date 53 . e.g.

e. vendors • S – General Ledger • A – Assets Example: Debit 01 21 40 Customer Invoice Vendor Credit Memo Debit GL Customer Credit Memo Vendor Invoice Credit GL • M – Materials Credit 11 31 50 – Layout of entry screen. i.FI Document Structure: Line Items • Posting key: Determines the following for line items: – If the line item is debit or credit – Type of account that can be entered • D – Debtors.. customers • K – Creditors.. mandatory. suppressed 54 . which fields are optional.e..e. i. i.

) • Account: Indicates the account the entry is posted to (i. customer account.e. GL account or asset number) 55 . vendor account.FI Document Structure: Line Items (cont..

Document Number Range • Accounting Document Number Range (FBN1) IMG Path: Financial Accounting>Financial Accounting Global Settings> Document> Document Number Ranges> Overview Number Ranges is year dependent User should manually specify the doc number if the External Numbering is checked Last FI document posted within the number range 56 .

Tolerance Groups • In this activity. you predefine various amount limits for your employees with which you determine: – Maximum document amount the employee is authorized to post – Maximum amount the employee can enter as a line item in a customer or vendor account – Maximum cash discount percentage the employee can grant in a line item – Maximum acceptable tolerance for payment differences for the employee 57 .

• Note: The same rules usually apply to a group of employees. using tolerance groups. so you can also additionally differentiate these settings by company code 58 . You can then enter amount limits and tolerances per employee group and company . enter the values for employee groups. This way the system can post the difference by correcting the cash discount or by posting to a separate expense or revenue account • In this respect you define: – The amounts or percentage rates up to which the system is to automatically post to a separate expense or revenue account if it is not possible to correct the cash discount or – Up to which difference amounts the system is to correct the cash discount.) • Payment differences are posted automatically within certain tolerance groups.Tolerance Groups (cont. In this case the cash discount is automatically increased or decreased by the difference.

2 – Master Data • Refer to System Walkthrough 1.System Walkthrough 1. – GL Account Maintenance (FS00) – Account Balance (FS10N) – Account Line Item Display (FBL3N) – Field Status Group (SPRO) – Account Group (OBD4) 59 .2 – Master Data in your Faculty Guide.

Account Balance • Account Balance – FS10N Double click on the cell to display the line items (this is only applicable if the account is managed per line item .refer to the GL master data setup) 60 .

Account Line Item Display • Account Line Item Display – FBL3N Open and cleared indicators are only available for account managed as open item (refer to the GL master data setup) .Status column .Open items are in red & cleared items are in green 61 .

Exercise 1.1 – Create a GL Account in your Participant Workbook – Your task is to create a GL account 62 .1 – Create a GL Account • Refer to Exercise 1.

2 – Create a GL Account with Reference • Refer to Exercise 1.2 – Create a GL Account with Reference in your Participant Workbook – Your task is to create a GL account with Reference 63 .Exercise 1.

Exercise 1.3 – Change a GL Account in your Participant Workbook – Your task is to change the description on an existing GL account 64 .3 – Change a GL Account • Refer to Exercise 1.

4 – Configuration: Change Field Status • Refer to Exercise 1.Exercise 1.4 – Configuration: Change Field Status in your Participant Workbook – Your task is to modify the field status on an existing account 65 .

Questions 66 .

Agenda – Day 1 • Course Introduction • Financial Accounting • General Ledger – Master Data • Enterprise Structure • General Ledger – Business Transactions & Open and Cleared Items 67 .

Enterprise Structure • Key Concepts and Organisation Structure – – – – – – – – Company Code Business Area Cost Centre & Profit Centre Fiscal Year Variant Posting Period Variant Tax Procedure Reports New General Ledger • Profit Centre • New Segment fields • General Ledger Extensions • Parallel Accounting • Real Time Integration 68 .

Company Code: A Review • The company code represents a legal entity of the Organisation. P&L. tax procedure. etc) are produced per company code • SAP configuration includes: Defining the company code. 0700) Assigning: country. chart of accounts. taxation reporting. language. an alphanumeric field of 4 characters (for example. currency. 69 . fiscal year. A001. Configure one company code for each legal entity • Financial statements and statutory reporting (B/S. posting period variant & field status variant Note: Company configuration is only required if consolidations is being used.

Victoria Business Area 2 e. P&L) can be produced per business area • One business area can belong to >1 company code • User-defined 4-digit alphanumeric field Chart of Accounts CoCd 1 CoCd 2 CoCd 3 Business Area 1 e.Business Area • Used to break up a company code into mini-companies • Financial reporting (B/S.g.g. NSW 70 .

Sample Enterprise Structure 1 ABC Limited Head Office • Victoria Manufacturing • Victoria Site • New South Wales Site • Western Australia Site Company Code 1 • Business Area Vic • Business Area NSW • Business Area WA Company Code 2 • Business Area Vic Marketing & Trading • Victoria Representative Office • Singapore Representative Office Freight Forwarder • Victoria Branch • New South Wales Branch • Western Australia Branch EC-CS Consolidation & Controlling Modules Company Code 3 Company Code 4 • Business Area Vic • Business Area NSW • Business Area WA 71 .

Cost Centre • Cost Centre is an organisational unit within a company that is used to track where costs occurred within the Organisation (i. the Cost Centre is assigned to the Profit centre.e. as a cost collector) – Cost Centre hierarchy needs to be defined in the system – The hierarchy represents cost Organisation structure of the company – If Profit Centre is implemented in the system.Overhead Management 72 . – Part of Cost Controlling (CO) . Many cost centres can be assigned to the same profit centre..

73 . revenue.Profit Centre • Profit Centre provides information to measure the profitability within the Organisation – Record cost/expense (from the Cost Centre or any other cost object). The segment is then derived from the assigned Profit Centre during posting within New GL. and B/S items – Profit Centre structure/hierarchy is defined based on the company Organisation structure – Profit Centre can go across company codes – Part of Cost Controlling (CO) – Profit Centre Accounting (Classic GL) or part of General Ledger (New GL) Note: Define Segment so that you can enter an associated segment in the master record of a profit Centre.

Sample Enterprise Structure 2 ABC Limited Victoria • Head Office • Manufacturing • Marketing & Trading • Freight Forwarder New South Wales • Manufacturing • Freight Forwarder Western Australia • Manufacturing • Freight Forwarder Singapore • Marketing & Trading Company Code 1 • Profit Centre Product A (setup in CO) • Profit Centre Product B (setup in CO) • Profit Centre Product C (setup in CO) Classic GL Company Code 2 • Profit Centre Product A (setup in CO) • Profit Centre Product B (setup in CO) EC-CS Consolidation & Controlling Modules Company Code 3 • Profit Centre Product C (setup in CO) Company Code 4 • Profit Centre Product A (setup in CO) • Profit Centre Product B (setup in CO) • Profit Centre Product C (setup in CO) 74 .

AUS Brisbane AUSTRALIA Profit Centre Hierarchy Product Melbourne Product Product Cost Centre Hierarchy G/A Unit Process X Segment 1 Brisbane CC Hierarchy Unit Process Y Unit Process Z Segments* Segment2 75 * Segments will be covered in New GL section.Enterprise Structure Example Company Code – Profit Centre – Cost Centre Controlling Area Company Code Profit Centre Hierarchy G/A ABC Ltd . . Segments do not apply to Classic GL.

Fiscal Year Variant (1 of 3) • Fiscal Year . – – – authorities and shareholders. The fiscal year can be configured as a calendar year or user defined • For example. The use of them is optional. the adjustments can be posted into a new special period. They can only be posted to if the posting date falls in the last fiscal period Periods are closed in the system to prevent documents from being posted to an incorrect posting period after the period closing 76 – . Accenture’s fiscal year begins at 1st Sept A fiscal period can be calendar months or user defined SAP provides 4 special posting periods. Each time the year end figures are reviewed. These are for use during year end close.Fiscal Year Variant – Impacts how data is reported to regulatory.

Fiscal Year Variant (2 of 3) • Maintain Fiscal Year Variant (OB29) IMG Path: Financial Accounting>Finan cial Accounting Global Settings>Fiscal Year>Maintain Fiscal Year Variant 12 normal periods and 4 special periods 77 .

Fiscal Year Variant (3 of 3) • Assign Company Code to Fiscal Year Variant (OB37) IMG Path: Financial Accounting>Finan cial Accounting Global Settings>Fiscal Year> Assign Company Code to a Fiscal Year Variant 78 .

one posting period can be attached to more than one company code – Then we attach this variant to the period and year combination which are open for financial posting – We can also assign the GL account numbers which will be available for posting during that period 79 .Posting Period Variant • Posting Period – A function for controlling which accounting periods can be updated as new transactions are posted – First we define the Variant for Open period posting and attach the same to the company code.

the GL account no..) • Posting Period (Screen Shot) – With variant we attach the account type for which posting period will be open.Posting Period Variant (cont. period and fiscal year 80 .

Taxes • Tax Procedure – Calculate and accurately book tax liabilities for sales and use or VAT type taxes in the GL at the time of GR or IR • Extended Tax Witholding will be covered in Accounts Payable on Day 3 81 .

GST input tax (buying goods) • Condition type is attached to Account key • Tax code identifies the tax types – Tax code is also setup at country level – The tax code is user defined – Typical configuration: create a tax code for each relevant G code in the BAS statement 82 . One country is assigned to one Calculation Procedure – The tax procedure for Australia is TAXAU – Calculation procedure consists of condition types i.Tax Procedure • Tax configuration is setup at country level. GST output tax (selling goods). types of tax applicable for the procedure • For example.e.

output tax. the other for output • The tax base amount can be configured to be before or after discounts are applied 83 . one for input tax.Typically.The tax calculated by the tax procedure is posted to tax accounts in the GL through Account key in Tcode OB40 .e. i. input tax) and tax codes ..The system derives the GL account from the tax types (e. we have 2 tax accounts.Tax Procedure (cont..g.) • The Tax code is linked to a tax account .

Standard FICO Reports • One report that can be taken for GL account balances. Tcode S_PL0_86000030 is shown below. 84 .

based on profit centre 85 .Taking Report Output • Output from report is shown below.

special ledgers and other tools can still be used. if required Classic GL New GL 86 .Unified View of the New GL • The new GL creates a unified view of the GL and eliminates the need for many additional ledgers – However.

New GL Functionality • Profit centre as part of New GL • New Segment fields • General ledger extensions • Parallel accounting • Real time integration • Online document splitting (covered later in this course) 87 .

Profit Centre Integration with New GL 88 .

New Segment Fields (1 of 5) • New “Segment” Account Assignment Object – Segment is a new account assignment object that you can use to segregate your financial position and performance – Balanced books per segment can be created – Segments are defined to provide financial information by line of business. or by geographical area or management area 89 .

custom derivation rules can be defined with BADIFAL_DERIVE_SEGMENT to derive segment automatically • Manually update segment information at the time of the financial posting 90 .New Segment Fields (2 of 5) – Segment is a new cost object that can be used for segment reporting – Segment information can be populated either manually or automatically • Assign segment field in the profit centre master data to derive segment automatically • If profit centre master data is not used.

New Segment Fields (3 of 5) • It is recommended to populate segment field by assigning segments to profit centres 91 .

New Segment Fields (4 of 5) • You cannot change segments in the Profit Centre master once they’re created and used • Segments can be assigned in Profit Centre master data 92 .

New Segment Fields (5 of 5) • To activate segments in the IMG: – Define segments – Derive the segments – Maintain the field status group in the FI accounts: • The Segment field can be found in group Additional Accounts assignments – Maintain the field Status of the corresponding posting key – Maintain scenarios: • The segmentations scenario have to be defined for the corresponding ledger 93 .

Highlights and Key Functionality of ECC 5.0 Financials Financial Accounting Management Accounting Financial Supply Chain Management Corporate Governance • New: General Ledger extensions: – Features: • Organisations can add dimensions to General Ledger as needed or as business evolves • Extendible General Ledger that uses standard data structure • Maintains existing functionality from your current General Ledger in SAP R/3 or R/3 Enterprise – Benefits • Quickly modify General Ledger to fit business needs • Reduce requirements for technical migration or training • Eliminates need to maintain separate special ledgers 94 .0/6.

as well as update ledgers individually or simultaneously – Benefits: • Reduces manual postings to individual ledgers • Enables greater efficiency of accounting staff • Document numbering improves internal control for managing parallel ledgers 95 .One Version of the Truth Financials Financial Accounting Management Accounting Financial Supply Chain Management Corporate Governance • New: Parallel Ledger – Features: • Provides additional functionality for “parallel ledgers” to support parallel accounting and to reduce costs • Organisations can use an identical interface and identical functions to process all ledgers in the general ledger.

reporting) • Almost the same functionality for all ledgers • Online posting to multiple ledgers • Postings per specific ledger • Closing activities can be run in parallel ledgers simultaneously • Standard reporting for multiple ledgers • The use of parallel accounts is still supported within the Sanctioned Party List (SPL) 96 .Parallel Ledgers • Any number of parallel ledgers • Same user interface for all ledgers (data entry. functions.

It is integrated with all subsidiary ledgers and is updated in all company codes (if posting is not ledger specific) 97 .Multiple Ledgers • One Leading ledger and multiple non-leading ledgers can be created in the client • Features of leading ledger: – Leading Ledger represents the accounting policy and basic books of accounts of the company code – Local/Parallel currencies and fiscal year of the leading ledger are adopted from the company code – Leading ledger is the default ledger for all postings – The leading ledger is based on the same accounting principle as that of the consolidated financial statement.

a ledger group of the same name is automatically created 98 .) • Features of non-leading ledger: – Creation of non-leading ledgers is optional – One or more non-leading ledgers may be created to: • Maintain books of accounts for a fiscal year different from company's code fiscal year • Post reporting entries.Multiple Ledgers (cont. revaluations. readjustments only to the non-leading ledger – Non-leading ledger can follow other the accounting principles/standards applicable for a company code – For each ledger that you create.

Ledger Configuration • Multiple ledgers – one ledger is defined as leading ledger 99 .

Currencies for the Leading Ledger • Define currencies of leading ledger – Specify the currencies to be applied in the leading ledger. You can make the following settings for each company code: • The local currency (as company code currency) is specified in the company code settings • You can define one or two additional local currencies that you store per company code parallel to the first local currency 100 .

Additional Local Currencies for Company Code • Additional local currencies for company code – Change the Additional Local Currencies for Company Code view 101 .

The first currency of a non-leading ledger is always the currency of the leading ledger. If you do not enter a fiscal year variant. you can only use currency types that you have specified for the leading ledger – Different fiscal year variant other than leading ledgers can be assigned to non-leading ledger.Non-Leading Ledger • Define and Activate Non-leading ledger – Activate the non-leading ledgers in the company code. – Define additional currencies beyond that of the leading ledger. For the second and third currencies of a non-leading ledger. the fiscal year variant of the company code is used automatically 102 .

Assign Scenarios & Custom Fields to Ledgers • We assign to our ledgers the following based on our requirement: – Scenarios • Determines what fields in a ledger are updated when it receives posting from other application components – Custom Fields • Enables you add custom fields (that you have already defined) to the ledger – Versions • Enables you to make general version settings for the ledger that depend on the fiscal year. you specify whether actual data is recorded. In the versions. and whether planning integration with Controlling is activated 103 . whether manual planning is allowed.

some companies can choose to report under the Cost of Sales Method • Cost of Sales Accounting – Identifies where costs originate in a company – Identifies the economic reason for a particular expense – Expenses are classified by functional area • Activating the Cost of Sales Accounting is an optional setting 104 .Activate Cost Of Sales Accounting • In Europe. all publicly-traded companies must submit their consolidated financial statements according to International Financial Reporting Standards (IFRS).

the functional areas are derived and updated in the ledger 105 .Activate Cost Of Sales Accounting (cont. and define substitutions • Define the ledger for cost of sales • By activating Cost of Sales accounting.) • Impacts for Cost of Sales Accounting – Cost of Sales Accounting must be activated – Functional areas must be used to sort your operating expenses – Settings to activate Cost of Sales are: • Define your functional areas • Assign a functional area to the master data of the account assignment objects • Derive functional areas for postings.

Ledger Group • While posting accounting document. ledger group determines which ledgers would get posted • One or more ledgers can be added in the ledger group • The system creates a ledger group for every ledger 106 .

Ledger Group (cont.)
• In the ledger group:
– A single ledger has to be identified as representative ledger – If the ledger group has leading ledger, then leading must always be defined as representative ledger – If all the ledgers in the ledger group have a different fiscal year variant than that of the company code, you can designate any ledger as the representative ledger – If on ledger in the ledger group has the same fiscal year variant as that of the company code, then that ledger must be defined as the representative ledger
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Parallel Accounting
• In one entity, different accounting principles can be applicable so that need can be handled through Parallel accounting where we can create different accounting principles that are applicable to the entity • Assign the accounting principle to the ledger group so that reports based on the principle can be taken

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Example: Parallel Ledgers – Posting to a Specific Ledger Group
• New transaction allows you to post an FI document to a specific ledger group
– Example: post statutory adjustments for ledgers used to produce financial statements based upon different accounting principals
• Enter GL Acct Document for Ledger Group

Use new Tcode FB50L to post to a specific ledger
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Document Splitting Financials Financial Accounting Management Accounting Financial Supply Chain Management Corporate Governance • New: Online splits – Features: • Allows Organisations to simplify the generation of financial statements and reports on segments or dimensions that are unique to their industry • Documents are automatically balanced online by any chosen dimension – Benefits: • Supports transparency and fast closes • Simplifies ability to report by industry-specific requirements • Greater internal control when generating industry-specific financial statements 110 .

g.Online Integration between FI and CO Modules Financials Financial Accounting Management Accounting Financial Supply Chain Management Corporate Governance • New: Real-time integration – Features: • Supports real-time integration of financial and management accounting in mySAP ERP • Any postings from management accounting (e. cost centre allocations) are automatically reflected in the general ledger at the appropriate level of detail – Benefits • Eliminates need for separate reconciliation ledger • Eliminates reconciliation processes between financial and managerial accounting • Increases opportunity to close month end books faster 111 ..

Example – Classic GL Versus New GL New GL Classic GL Note: • The PCA tables are no longer used with the New GL. therefore. the PCA reports are not available • You may need to create some custom reports if the Profit Centre reporting in the GL is not sufficient 112 .

− FI Document Display (FB03) – Open & Close Posting Period (OB52) – Company Code (OBY6) – Maintain Fiscal Year Variant (OB29) – Assign Company Code to Fiscal Year Variant (OB37) – Accounting Document Number Range (FBN1) 113 .3 – Key Concept & Organisation Structure • Refer to System Walkthrough 1.3 – Key Concept & Organisation Structure in your Faculty Guide.System Walkthrough 1.

Questions 114 .

Agenda – Day 1 • Course Introduction • Financial Accounting • General Ledger – Master Data • Enterprise Structure • General Ledger – Business Transactions & Open and Cleared Items 115 .

General Ledger – Business Transactions & Open and Cleared Items • Document Posting – – – – – – – – – – Direct Automatic Recurring Post with Reference Account Assignment Templates Validation Substitution Park Reverse Re-set Open Items • Maintain Exchange Rates • Open and Cleared Items 116 .

FI Document Posting • FI Document Posting – Once the document is posted. Currency. Document type. Exchange Rate. New GL – parallel ledgers – An error message will not permit posting. the user must stop – A warning message will allow the user to still proceed by pressing Enter. Text  can be changed – A document posting may update multiple parts of SAP Financials – New GL documents can post to one or multiple ledgers – Examples: Classic GL – FI & PCA. Amount. Posting Key. Accounts. Assignment. 117 . Cost object  cannot be changed • Reference. the system only allows limited fields to be changed • Posting Date.

Tcode FB50/FB01 – E.. vendor invoice (from MM) 118 . depreciation (from Asset Management).g.FI Document Posting (cont. tax adjustment posting. bank reconciliation • Automatic posting: – From sub-ledger or other modules – For accounts with Automatic Entry setup in the master data – For example.) • Direct posting: – Directly posted in GL – Can only be done to accounts without Automatic Entry option – Document type SA.

loan repayment journal.14) – For posting the same journal into the system (same posting keys. and amount) – Scheduled to run on certain date or periodically for the certain period of time – E. rental payment Post with reference (Tcode F-01) – System will auto populate the fields according to the reference document. accounts. another FI document that has already been posted 119 .e.g... amortization journal. i.FI Document Posting – Direct Posting with Template • Recurring entry (Tcode F.

) • Account assignment model (Tcode FKMT) – Journal template that is created and stored in the system. Checking will only be done by the system at document posting 120 . User selects the account assignment upon posting – The account assignment does not need to be balanced.FI Document Posting – Direct Posting with Template (cont.

reference field at the document header should be populated • For posting in local currency.FI Document Posting – Validation • Validation can be set up in the configuration where users should enter certain value(s) for certain kind of posting – Set in the configuration using Tcode OB28 – Help control data integrity – If the validation criteria are not met. only payment term XXX could be used • GL account xxxxxx could only be posted to cost centre ABC Question: What is the difference between warning and error message? 121 . error or warning messages could be set up – Validation examples: • For document type KR.

FI Document Posting – Substitution • Substitution is to replace one value with another automatically upon document posting – Set in the configuration using Tcode OBBH – Help control data integrity – Performed before validation. the values are substituted first and then validated – Has no messages – Transparent to the users – Substitution examples: • All postings to cost centre A in company code 0100 need to be booked to cost centre B 122 . i.e..

the document needs to be reviewed by a supervisor. checking of park document list should be included in the month end activities 123 .g. – Park document does not update GL until the document is released – If park facilities is utilized. e. etc. but it is not desirable to post the document yet..Other Transactions (1 of 3) • Park document – Park transaction can be used if the accounting document is to be saved. complete supporting document has not been received yet.

Other Transactions (2 of 3) • Reverse document (Tcode FB08) – System will cancel the accounting document.e. generate opposite entries for the items – Reversal will clear accounts that are managed as open items – Reversal cannot be undone – Reversal in FI can only be done if the document • Contains no cleared items • Was posted directly from Financial Accounting (documents that were posted from other modules such as MM or SD need to be cancelled/reversed in the originated module) • All entered values (such as cost centre and tax code) are still valid 124 . i..

System does not allow cleared items to be reversed until the clearing is reset .Use Reset and reverse option to break the link and reverse the clearing document 125 .) – Reversal Reason • Must be entered • Control whether the reversal date is allowed to be different from the original posting date • Defined in the configuration • Reset open item (Tcode FBRA) .Other Transactions (3 of 3) • Reverse document (cont.Breaking the grouping between cleared items and clearing document .

Support of Multiple Currencies
• Maintain Exchange Rate (Tcode OB08)
– There could be more than one valid exchange rate in the system for different purposes; i.e., accounting, tax reporting, costing – Accounting will use exchange rate type “M” for translating document currency (i.e., currency specified at the document header) to local currency (i.e., currency specified at company code definition)
Exchange rate type
Validity date

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Maintain Exchange Rate
• Below is the print shot that shows the exchange rate, which is picked from Tcode OB08 table; i.e., 1 USD = 44 INR

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Setting Accounts for Open Item Management
• Open and Cleared Items
– SAP provides functionality to link and match one item to another (i.e., customer invoice with payment, vendor invoice with payment, invoice with credit memo) to help manage account reconciliation – Open items: unfinished transactions. Open items need to be matched/cleared against a clearing document to be settled and become cleared items
• • Are line items in an account that have not be grouped with any other line item. E.g., an invoice needs payment to be completed  open items in the system in this case indicate unpaid invoice or payment that has not been applied to any invoices
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• Cleared items are a group of debit and credit line items in an account that have been linked together and their total is zero • The entries are grouped by the clearing document number • Clearing can be done manually by user selection or automatically as set up in the configuration – All clearing and provision accounts should have the open item management flag turned on in the GL account master data 129 .) – Cleared items: the transactions are completed.Setting Accounts for Open Item Management (cont.

4 – Business Transactions in your Faculty Guide. − − − − − − − − FI Document Posting (FB50) Display Document (FB03) Change Document (FB02) Display Changes to FI Document (FB03) Park and Release Document (F-65  FBV0) Reverse Document (FB08) Post with Reference (FB01) Account Assignment Model: Create (FKMT) and Create Journal (F-02) − Configuration: Create document header validation (OB28) − Maintain Exchange Rate (OB08) 130 .System Walkthrough 1.4 – Business Transactions • Refer to System Walkthrough 1.

. 131 . status = 1 Double click on the validation cell to display the validation rule. i.e.Create Document Header Validation (OB28) • IMG Path: Financial Accounting Global Settings>Document>Document Header> Validations in Accounting Document Validation is assigned to company code Can be 1 – Header validation 2 – Line item validation 3 – Both Needs to be activated.

) Document header validation is created under this node One validation can have more than one step Line item validation is created under this node If Then Else (if the check is not satisfied) 132 .Create Document Header Validation (OB28) (cont.

5 – Post FI Document • Refer to Exercise 1.Exercise 1.5 – Post FI Document in your Participant Workbook – Your task is to post a document to correct an error in a previous posting 133 .

6 – Change FI Document in your Participant Workbook – Your task is to change an FI document 134 .6 – Change FI Document • Refer to Exercise 1.Exercise 1.

Exercise 1.7 – Park FI Document
• Refer to Exercise 1.7 – Park FI Document in your Participant Workbook
– Your task is to enter a journal for an account and park the document

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Exercise 1.8 – Post Parked Document
• Refer to Exercise 1.8 – Post Parked Document in your Participant Workbook
– Your task is to review and post parked documents

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Exercise 1.9 – Reverse Document
• Refer to Exercise 1.9 – Reverse Document in your Participant Workbook
– Your task is to reverse a document that was entered twice in error

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10 – Post with Reference • Refer to Exercise 1.Exercise 1.10 – Post with Reference in your Participant Workbook – Your task is to make a correction posting with reference to another document 138 .

Questions 139 .

Define the following terms covered: − − − − Company code Cost Centre Profit Centre Leading Ledger 140 .Knowledge Check (1 of 3) 1.

Knowledge Check (2 of 3 ) 2. − Segment is a new account assignment object that you can use to segregate your financial position and performance. − Tax configuration is set up at company level. 141 . True or False: − One leading ledger and one non-leading ledger can be created in the client.

Describe at least one difference between Classic GL and New GL. Explain how to post a parked document and the reason for parked documents. 6. Where do you predefine various amount limits for your employees? 5. 7.Knowledge Check (3 of 3) 3. 142 . 4. Define Account Group. Explain how to create a GL account.

End of Day 1 Q & A 143 .

End of Day 1 Lessons Learned • Use of Financial Accounting module and differences with Controlling module • Master data elements in the General Ledger • Organisation structure for the General Ledger • Configurations related to Organisation structure and master data setup • New GL functionality • Different business transactions • Open and cleared Items 144 .