SAP FI General Ledger

Table of Contents
GL Overview Sub Processes
• • • • •

 

Master Data Transaction Processing Account Analysis / Reconciliation Periodic Processing Reporting

SAP Modules - Overview
SD FI

Sales & Distribution Materials Mgmt.

Financial Accounting Controlling Fixed Asset Mgmt.

MM

CO

Product Planning

PP

AM

Quality Mgmt.

QM

SAP R/3
PM OC
Human Resources

Project System

PS

Plant Maint.

HR

Industry Solutions

IS

Office & Comm.

FI – Financial Accounting Modules
FI - Financial Accounting Modules
GL
SL
Legal Consolidation General Ledger

Special Ledger

AP GL

Accounts Payable Accounts Receivable

LC TM

FI
CM

AR

Travel Management

AM
&

Cash Management

Asset and Investment Management

IM

Financial Accounting / Controlling

Financial Accounting
• • • Legal / Statutory Accounts Standard Ledgers Master Data Integrates with Controlling Management Accounts Manage Budget Expenditure

Controlling
• •

Integration .General Ledger .

A Group Hierarchical Structure Company A Group Chart of Accounts A Grp Common Chart of Accounts (YCCA) Company Codes A Ltd (9100) A1 Ltd (9200) Financial Management Area A Grp FM Area )9100( .

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. COA “YCCA” • • • Company Code 9100 A Ltd Company Code 9200 A1 Ltd . organizational units use the same Chart of Accounts: YCCA.

Each company code in A Group uses the G/L accounts from only one chart of accounts for account validation. A company code is assigned to a chart of accounts. This is called the operating chart of accounts.Company Code  Company Code • • It is an independent accounting entity. • . A chart of accounts can be used by multiple companies provided they have the same basic account requirements.

General Ledger Process Overview Financial Accounting General Ledger Master Data Transaction Processing Account Analysis & Reconciliation Periodic Processing Reporting .

Master Data  Account Groups  Maintenance • Creation at 2 Levels • Chart of Accounts Data • Company Code Data • Change • Block • Delete  Cost Elements • Creation .

BS YCCA MAT YCCA REV 120001 110000 400000 100000 100000 800000 120299 118999 499999 399999 899999 899999 Fixed Assets Accounts Liquid Funds Accounts Expense Accounts General Balance Sheet Accounts Material Management Accounts Revenue Accounts Account Groups .GL Account Groups A Grp COA Number Ranges YCCA AA YCCA CASH YCCA EXP YCCA G.

a th P cc A er os o M cco un r e t in at u fe g t n er n re c u ia t g on m nc l M ro e tro be gm up da l r ta t : Chart of accounts segment Acct number: 119430 • • Currency Tax-related • • Item management Posting control.GL Account Master Record General Ledger Balance P&L Balance P&L T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T Inventory – Finished goods Bal. statem.. sheet acct: Inc.. Company code segment . acct: )Balance c/fwd( Description: B A ank O ut.

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 .

and revenue shortterm Controlling capital 1 2 3 4 8 9 Profit Center Accounting .YCCA Financial Accounting 1 Assets 2 Liabilities 3 Equity 4 8 Expense Revenue accounts Material Current Nonoperainventory Primary Revenue Secondary financial cost elements cost ting elements elements assets costs. Chart of Accounts .Cost Elements – Chart of Accounts A Grp.

such as reconciliation accounts Revenue account .The Cost Element CO Primary cost elements Primary cost element External order settlement G/L accounts P&L accounts Balance sheet accounts FI Secondary cost elements Internal activity allocation Assessment Overheads Internal order settlement Revenue elements Revenue element Sales deduction Expense accounts Accounts posted to directly. such as bank accounts Accounts posted to indirectly.

General Ledger Process Overview Financial Accounting General Ledger Master Data Transaction Processing Account Analysis & Reconciliation Periodic Processing Reporting .

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 C re .

000.000. A Grp.000 Line items 1.000    Each document consists of two segments: header and line items.000 Total: 1. .000 200. will use the standard document types of SAP.. Debit Credit 800.The Accounting Documents Header Document No: 123456 Date: 6/5/1000x Company Code: 5200 Currency: US$ . After posting it receives a unique document number. The system assigns the document numbers automatically.000 1..000..

.. Current numbers 00 Internal numbering defined per fiscal year DR 00 EX External numbering 02 02 Current numbers 01 Internal numbering defined until fiscal year in the future SB 01 .Document Number Ranges 9999999999 9000000000 8000000000 7000000000 6000000000 5000000000 4000000000 3000000000 2000000000 1000000000 0000000000 1998 1999 2000 2001.

Translation Date. Entry Date (automatic). • Short text. Posting Date. Period.     Document Type Company Code Currency Additional information: • Reference. .The Document’s Header  Dates: • • • • • Document Date.

..Posting keys Field no Relevant for postings on accounts of this type? yes Posted with which posting key? Posted on which account? suppress Account P K P K . .. Po de stin g sta pend key tus en t fi eld ? nt nt u co nde us Ac pe tat de ld s fie Priority ..

Line items   During document entry. . when posting expenses. certain fields need to be filled in. For example. 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.

press the “Simulate” button: Or post it immediately .Posting a document Document entered correctly Posting functions  You can now:   Simulate your document .press “Save” button (F11) .

Functional currency of the company code .Currency of the document . Every document.Posting in Foreign Currency Local currency Document currency Group currency .Alternative currency for group reporting     For every Company Code there’s defined a company code currency. every company code has a “local” currency. ie. 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 .

Or derived from “Exchange Rates Table” 3.Posting in Foreign Currency 1. Exchange rate can be entered manually. . System automatically translates the foreign currency into CC currency. 2. 1. 2. 3.

Parking / Holding a Document  After entering the document it is possible: • • • To post it immediately To “park” the document To hold the document .

. Code: 5200 Document # 2: Line Items: PK 40 50 50 Account 123000 345560 907902 Amount 5000 2000 3000  Reference documents are either accounting documents or sample documents that are used as a reference to post an accounting document.Reference Documents Document # 1 )Reference Document(: Header: Line Items: PK 40 50 50 Account 123000 345560 907902 Amount 5000 2000 3000 01/03/2003 Comp.

Reverse a GL document Document entered incorrectly Balance sheet Assets Liabilities Shared equity Document corrected by Reversal: Reverse with a standard reversal posting Reverse with a negative posting Document re-entered correctly .

 .  Process may be scheduled to be performed in the background.Mass Reversal of Documents Mass Reversal Procedure Many documents may be reversed at the same time.

General Ledger Process Overview Financial Accounting General Ledger Master Data Transaction Processing Account Analysis & Reconciliation Periodic Processing Reporting .

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 Balances display • Opening Balance (Carry forward Balance from previous year) Account balance • 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 Open items represent transactions that are incomplete. The balance of an open item managed accounts are the reconciliation items. . You can only clear open items for accounts that are open item managed.

Reversal of Clearing Display cleared items Reversal of clearing   Reversal of documents that were cleared before is not possible. . First the clearing operation must be reset.

General Ledger Process Overview Financial Accounting General Ledger Master Data Transaction Processing Account Analysis & Reconciliation Periodic Processing Reporting .

.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.

01 02 03 04 : 12 Day 31 28 31 30 31 Period Year 10 -1 11 -1 12 -1 01 09  Every transaction that is posted is assigned to a particular posting period . of Post. of Special Per. 2 2003 R1 Periods FY Variants Mo. 12 No. Per.Posting Periods Company Code Data Company Code0001 R1 FY Variant Fiscal Year Variants K4 Same as Calendar Year R1Shortened Fiscal Year V3 Non-Calendar Fiscal Year Calendar Year Year Properties R1 FY Variants Calendar Year Year-Dependent C No.

for instance. . 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. a bank clearing account.GL Account Clearing Automatic Payment Bank Statement   A typical example of an open item is.

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 xxxxxx ------------------------------xxxxxx ------------------------------xxxxxx ------------------------------xxxxxx ------------------------------- Automatic clearing program .

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 .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.

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 ____________ ______________________ ______________________ Batch Input Session 03/01/2002 ___________________ 02/01/2002 ___________________ ___________________ 01/01/2002 ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ .

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 Financial Accounting General Ledger Master Data Transaction Processing Account Analysis & Reconciliation Periodic Processing Reporting .

) • Sent by e-mail . Excel file etc. • Saved as a local file (txt format.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.

Reporting Requirements Balance Sheet Cash Income Statement Flow FI External Reporting CO Internal Reporting Cost Product Cost Center Profit Center .

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 .e.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. Local.

Report Tree 1 SAP Menu 2 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 1 SAP Menu 2 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 Report Execution Selection of Report Parameters Variant Selection Dynamic selection  A report can be executed directly or scheduled in the background .

Report Variant 2 2( Press “Save” button 1 1( Enter the required criteria on the selection screen 3 3( Enter the variant’s name .

 They summarise what is involved in a the GL process at a high level General Ledger Master Data Transaction Processing Account Analysis & Reconciliation Periodic Processing Reporting .General Ledger Process Overview Financial Accounting  Process decompositions are the starting point for our process documentation.