SAP FI

General Ledger

Table of Contents

GL Overview
Sub Processes
Master Data
Transaction Processing
Account Analysis / Reconciliation
Periodic Processing
Reporting


SAP Modules - Overview
Sales &
Distribution
SD
MM
PP
QM
PM
HR
FI
CO
AM
PS
OC
IS
Materials
Mgmt.
Product
Planning
Quality
Mgmt.
Plant Maint.
Human
Resources
Financial
Accounting
Controlling
Fixed Asset
Mgmt.
Project
System
Office &
Comm.
Industry
Solutions
SAP R/3
FI Financial Accounting Modules
FI - Financial Accounting Modules
FI
Accounts Payable
Cash Management
Special Ledger
LC
Legal
Consolidation
TM
Travel
Management
Asset and Investment
Management
General Ledger
Accounts Receivable
Financial Accounting / Controlling
Financial Accounting
Legal / Statutory Accounts
Standard Ledgers
Master Data Integrates with Controlling
Controlling
Management Accounts
Manage Budget Expenditure

General Ledger - Integration
A Group Hierarchical Structure
A Grp Common
Chart of Accounts
(YCCA)
Company
Chart of Accounts
Company Codes
Financial Management Area
A Grp FM Area
(9100)
A Ltd (9100)
A1 Ltd (9200)
A Group
Chart of Accounts
The Chart of Accounts
Contains the definitions of
all G/L accounts in an
ordered form
Each general ledger is set
up according to a Chart of
Accounts
Many company codes may
use the same COA
All A Grp. organizational
units use the same Chart
of Accounts: YCCA.
COA
YCCA
Company Code
9100 A Ltd
Company Code
9200 A1 Ltd
Company Code
Company Code
It is an independent accounting entity. A company code is assigned
to a chart of accounts.
Each company code in A Group uses the G/L accounts from only
one chart of accounts for account validation. This is called the
operating chart of accounts.
A chart of accounts can be used by multiple companies provided
they have the same basic account requirements.
General Ledger Process Overview
Transaction
Processing
Master
Data

General
Ledger
Account
Analysis &
Reconciliation
Reporting

Financial
Accounting
Periodic
Processing
Master Data
Account Groups
Maintenance
Creation at 2 Levels
Chart of Accounts Data
Company Code Data
Change
Block
Delete
Cost Elements
Creation
GL Account Groups
YCCA AA 120001 120299 Fixed Assets Accounts
YCCA CASH 110000 118999 Liquid Funds Accounts
YCCA EXP 400000 499999 Expense Accounts
YCCA G.BS 100000 399999 General Balance Sheet Accounts
YCCA MAT 100000 899999 Material Management Accounts
YCCA REV 800000 899999 Revenue Accounts
A Grp COA
Account Groups
Number Ranges
GL Account Master Record
Item management
Posting control...
Currency
Tax-related
Acct number: 119430
Inventory Finished goods
Bal. sheet acct:
Inc. statem. acct:
Chart of
accounts
segment
Company
code
segment
Description:
(Balance c/fwd)
General Ledger
Balance P&L
T T T T T
T T T T T
T T T T T


Balance P&L
T T T T T
T T T T T
T T T T T
Blocking of G/L Accounts
G/L Accounts are blocked at two levels
Chart of Accounts level
Company Code level
In Chart of accounts you block
A master from creating in the Company Code
An account for posting
In Company Code you block
An account for posting

NOTE: You can set or cancel the posting indicator at any time


Mark G/L Accounts for Deletion
G/L Accounts are not physically deleted without taking
preparatory steps
Mark it for Deletion
Specify that record must be archived
Archive the transaction data attached to that master record
Execute the G/L deletion program




9
Controlling Controlling
Revenue
elements
1 2 3
Assets
4
Liabilities Equity
Financial Accounting Financial Accounting
Expense
accounts
8
Revenue
Profit Center Accounting Profit Center Accounting
1
Current
financial
assets
and
short -
term
capital
2
Non -
opera -
ting
costs,
revenue
3
Material
inventory
Cost Elements Chart of Accounts
A Grp. Chart of Accounts - YCCA
Primary
cost
elements
Secondary
cost
elements
4 8
Primary cost elements
Primary cost element
External order settlement
Secondary cost elements
Internal activity allocation
Assessment
Overheads
Internal order settlement
Revenue elements
Revenue element
Sales deduction
Revenue account
Expense accounts
Accounts posted
to directly, such as
bank accounts
Accounts posted
to indirectly, such
as reconciliation
accounts
Balance sheet
accounts
P & L
accounts
G/L
accounts
FI FI
CO CO
The Cost Element
General Ledger Process Overview
Transaction
Processing
Master
Data

General
Ledger
Account
Analysis &
Reconciliation
Reporting

Financial
Accounting
Periodic
Processing
Transaction Processing
SAP R/3 supports the following transactions:
Journal (JV) Processing
Document Principle
Document Structure
Foreign Currency documents
Parked documents
Posting with Reference
Reversing / Canceling documents

Document Posting: Activity Flow
Create G/L
account posting
Create G/L Posting
Fast Entry
Simulate
(Enough Info
to Complete Posting?)
No
Posted Entry
Post Manual
Journal
Create/Display a Parked
Document
Post/Release a
Parked Document
Yes
Holding an incomplete
document
The Accounting Documents
Header
Line items
Document No: 123456
Date: 6/5/1000x
Company Code: 5200
Currency: US$ ,,,,
Total:
Debit Credit
1,000,000
800,000
200,000
1,000,000 1,000,000
Each document consists of two segments: header and line items.
After posting it receives a unique document number.
A Grp. will use the standard document types of SAP. The system
assigns the document numbers automatically.
Document Number Ranges
0000000000
1000000000
2000000000
3000000000
4000000000
5000000000
6000000000
7000000000
8000000000
9000000000
9999999999
00
01
02
Internal
numbering
defined per fiscal
year
External numbering
Internal numbering
defined until fiscal
year in the future
Current numbers
1998
Current numbers
1999 2000 2001...
The Documents Header
Dates:
Document Date,
Posting Date,
Translation Date,
Entry Date (automatic),
Period.
Document Type
Company Code
Currency
Additional information:
Reference,
Short text.
Posting keys
Field
?
P
r
i
o
r
i
t
y

Account
yes
no
suppress
Posted with which
posting key?
Posted on
which account?
PK ...
PK ...
Relevant for postings
on accounts of this type?
Line items
During document entry, certain fields need to be
filled in. For example, when posting expenses, a
cost center and tax information is usually
required.
Tax fields are only ready for entry if the general
ledger account is set up as tax-relevant.
Posting a document
Document entered
correctly

You can now:
Simulate your document - press the Simulate button:
Or post it immediately - press Save button (F11)

Posting functions
Posting in Foreign Currency
Local currency - Functional currency of the company code
Document currency - Currency of the document
Group currency - Alternative currency for group reporting

For every Company Code theres defined a company code currency, ie,
every company code has a local currency.
Every document, posted in different currency than company code
currency, is processed as a foreign currency document.
Accounting documents can be posted in a foreign currency
The foreign currency is converted to local currency and both are stored
in the document along with the exchange rate
Posting in Foreign Currency
1.
3.
2.
1. Exchange rate can be entered manually,
2. Or derived from Exchange Rates Table
3. System automatically translates the foreign currency
into CC currency.

Parking / Holding a Document
After entering the document it is possible:
To post it immediately
To park the document
To hold the document
Reference Documents
Header: 01/03/2003 Comp. Code: 5200
Document # 1 (Reference Document):
Line Items:
PK Account Amount
40 123000 5000
50 345560 2000
50 907902 3000
Document # 2:
Line Items:
PK Account Amount
40 123000 5000
50 345560 2000
50 907902 3000
Reference documents are either accounting documents or sample
documents that are used as a reference to post an accounting document.
Reverse a GL document

Document entered incorrectly



Document corrected by Reversal:
Reverse with a standard reversal
posting
Reverse with a negative posting


Document re-entered correctly


Balance sheet
Assets
Liabilities
Shared equity
Mass Reversal of Documents
Many documents may be reversed at the same time,
Process may be scheduled to be performed in the background.
Mass Reversal
Procedure
General Ledger Process Overview
Transaction
Processing
Master
Data

General
Ledger
Account
Analysis &
Reconciliation
Reporting

Financial
Accounting
Periodic
Processing
Account Analysis / Reconciliation
SAP R/3 supports the following transactions:
Display G/L account balance
Display G/L line items
G/L account analysis functions
Clear outstanding items on G/L account
Account: balance and line items
Account balance
Account Balances display
Opening Balance (Carry forward Balance from previous year)
Totals of all transactions for each posting period broken down for
Debits and Credits

From these figures the system calculates the following for the
account balance function
Balance per posting period
Accumulated balance for the account
Account: balance and line items
Line items
Line items can be displayed on G/L accounts which are managed
with Line Item display
Line items are displayed on-line
Line Items can be totaled and sorted according to user requirements
Additional fields can be added to the Line Item display screen
Alternative custom defined Line Layouts can be defined
Account Analysis Functions
Functions supporting
account analysis are
grouped on the
Application toolbar
Open Item Clearing
1 2
3
The balance of an open item managed
accounts are the reconciliation items.
Open items
represent
transactions
that are
incomplete.
You can only
clear open items
for accounts that
are open item
managed.
Reversal of Clearing
Reversal of documents that were cleared before is not possible,
First the clearing operation must be reset.
Display cleared items
Reversal of clearing
General Ledger Process Overview
Transaction
Processing
Master
Data

General
Ledger
Account
Analysis &
Reconciliation
Reporting

Financial
Accounting
Periodic
Processing
Period End Processing
SAP R/3 supports the following transactions:
Fiscal Year variants & Posting Period
Clear open items, both manually and automatically
Create, maintain and process accrual/deferral transactions
Recurring Entries
Revalue balances in foreign currencies
Reconciliation of documents with monthly debits & credits
Roll over of closing balances to form opening balances can be
performed multiple times and after the beginning of the new fiscal year.
Posting Periods
Every transaction that is posted is
assigned to a particular posting
period
K4 Same as Calendar Year
Shortened Fiscal Year
V3 Non-Calendar Fiscal Year
Company Code Data
Fiscal Year Variants
Company Code 0001
FY Variant
R1 R1
Calendar Year
Year 2003
Periods
FY Variants
Mo. Day Period Year
01 31 10 -1
02 28 11 -1
03 31 12 -1
04 30 01
:
12 31 09
Properties
FY Variants
Calendar Year
Year-Dependent C
No. of Post. Per. 12
No. of Special Per. 2
R1 R1
GL Account Clearing
Bank Statement
Automatic
Payment
A typical example of an open item is, for instance, a bank clearing
account.
A transaction is cleared when an offset value is posted to an item or
group of items, so that the resulting balance of the items is zero.
Automatic Clearing Program
Open items for G/L Accounts, Vendors and Customers can be
cleared automatically by running the Clearing Program
Set up predefined criteria for automatic clearing (Configuration)
Program groups those items from an account that have the same
Trading Partner ID
Reconciliation Number
Currency in which the General Ledger is updated
Four freely definable criteria

Accounts
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xxxxxx
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xxxxxx
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xxxxxx
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Automatic clearing
program
Deferrals & Accruals
Accruals and deferrals can be handled automatically by the SAP R/3
system
Accrual/Deferral Documents are created on a monthly basis to record
expenses/income which were anticipated but not yet realized
Once a transaction has been approved, it can be set up and run
automatically each month.
The recurring entry program helps to maintain Accruals / Deferrals
postings
Standard Journal Posting
Has a reversing date
Reversal Date can be any date in the future
Monthly job is scheduled to reverse all Accrual/Deferral Documents automatically
Recurring Entry Document
Posting Parameters
First run on
Last run on
Interval in months
Run Date
Run Schedule
01/01/2002
12/01/2002
01
15
____
Document ____________
______________________
______________________
03/01/2002
___________________
___________________
___________________
02/01/2002
___________________
___________________
___________________
01/01/2002
___________________
___________________
___________________
Batch Input
Session
Recurring Entry Document (2)
Dates when the first and the last recurring entries are to be
carried out
Document s
Header
Line items
General Ledger Process Overview
Transaction
Processing
Master
Data

General
Ledger
Account
Analysis &
Reconciliation
Reporting

Financial
Accounting
Periodic
Processing
Reporting
SAP system offers number of reports that help analyzing
entered business transactions:
Financial Statement Version (Balance Sheet and P&L)
Account Balances
Line Items
Documents
Master Data
Report can be:
Printed out directly to the printer,
Saved as a local file (txt format, Excel file etc.)
Sent by e-mail
Reporting Requirements
Balance
Sheet
Income
Statement
Cash
Flow
Internal Reporting
External Reporting
FI
CO
Product
Cost
Cost
Center
Profit
Center
Financial Statement Version
Financial Statement Versions are set up to represent the balance
sheet and P+L statement according to your own specific requirements
Can be created for different legal entities
Can be created in different Languages
Are executed in desired currency i.e. Local, Group

Using the Financial Statement you specify
Line items to be included in the Financial Statement
Sequence the line items are displayed
The COA and the accounts that are displayed in the Financial Statement
The totals that are presented on the Financial Statement
Balance
Sheet
Income
Statement
Report Tree
2
1
SAP Menu
Transaction SA38
A user can run the required report in two ways:
Directly from Report Tree
Using transaction SA38, provided the he knows the report name
Report Tree
2
1
SAP Menu
Transaction SA38
A user can run the required report in two ways:
Directly from Report Tree
Using transaction SA38, provided the he knows the report name
Report Execution
Selection of Report Parameters
Report Execution
Variant Selection Dynamic selection
A report can be executed directly or scheduled in the
background
Report Variant
1) Enter the required
criteria on the selection
screen
1
2
3
2) Press Save button
3) Enter the variants
name
General Ledger Process Overview
Transaction
Processing
Master
Data

General
Ledger
Account
Analysis &
Reconciliation
Reporting

Financial
Accounting
Process decompositions are the starting
point for our process documentation.
They summarise what is involved in a
the GL process at a high level
Periodic
Processing