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TERP21 Intro Into Processing in Financial Accounting

TERP21 Intro Into Processing in Financial Accounting

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Published by Sandeep Patil

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Published by: Sandeep Patil on Oct 23, 2011
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Audio Transcript

Let us understand the tasks in Financial Accounting. The General Ledger is a critical part of
Financial Accounting. It is in this General Ledger where all the business transactions are recorded
and external accounting is prepared here. Major postings such as Account Receivables from the SD
course and Accounts Payables from the MM module may take place in the sub-ledgers. These sub-
ledgers are connected to the General Ledger with an assignment called the Reconciliation account
in the General Ledger.
These reconciliation accounts are balance sheet accounts that represent “Receivables” and
“Payables” in the Balance Sheet. Since the system updates these accounts online and in real time,
the General Ledger is always up to date and balanced. You will have all the details of individual
posting for customers and vendors in the sub-ledgers and only the total debits and credits, which are
collective postings, are posted in the General Ledger.
Similarly, you can see here that Asset Accounting and the Bank Ledger are connected to the General
Ledger. As SAP ERP has an integrated framework, you will find that all expense postings flow
automatically to Controlling (CO).

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