2.

0 : Master Data

2.1 General Ledger (G/L) Accounts

 The chart of accounts provides structure and basic information about G/L accounts.

The Definition of Chart of Account contains: Chart of account key & description

General Information contains: maintenance language & length of account number

Controlling Integration that is creating manual or automatic cost elements

Consolidation that is Group chart of accounts

Status that is blocked or otherwise

 You can assign the group account number to each G/L account. You must assign group
account number for each G/L account for cross company code reporting if you are using
different chart of accounts group chart of accounts

If you enter a group chart of accounts in the chart of accounts, the system defines that you have to enter a
group account number in the corresponding in the corresponding field in the G/L account field (required
entry) and checks whether the group account number exists in the group chart of accounts

 One chart of account can be assigned to several company codes. The information in chart
of accounts is accessed automatically. The texts entered in the chart of account segment
are managed by Text ID and the language.

 G/L account has one chart of account segment and can have many company code
segments. The company code segment is added to the chart of account segment
and together they form the account
The company code segment contain several groups of fields

Control Data: Account Control; Account management; Joint venture

Bank / Interest: Document Creation; Bank/Financial details; Interest calculation;

Information: Information viz’, currency, taxes, reconciliation account; line item display, sort key; field
status group, house bank; text etc

 You can translate the chart of account into other language. If it is not translated in the log
on language it appears in maintenance language. You can define and change the layout of
the tab page for the individual processing of the G/L account master data.

 You have to have company code segment assigned to chart of account segment before
using the G/L account for the company. The company code segment for all company
codes using the same chart of account segment for the G/L account need not be same.
 Further, it is not necessary that all group company codes have to use all accounts of chart
of account

 The number and the description of company code segments for all company codes are
always same. Because this is maintained in chart of account segment. Further you have to
mention in the chart of account segment whether the account is balance sheet or P&L
statement account.

 During closing procedure, for balance sheet account, the balance is carried forward to the
same account whereas for P/L account the balance is carried forward to the retained
earnings account. There can be different retained earning accounts for different P& L
statements. If the system has one retained earning account, it automatically transfers but if
there are many, you need to mention for each P/L statement account. (The G/L account is
assigned a key that is having the reconciliation account number)

 Account group controls the field status of the account field. In the same chart of accounts
all accounts need not have the same account group. Accounts can be grouped in different
account groups

Since a chart of accounts contains many different types of accounts, they can be grouped into different
account groups. Usually, one account group groups accounts with the same tasks within the general ledger,
for example, cash accounts, material accounts, asset accounts, profit and loss statement accounts, and so on.
By assigning a number range to an account group, you can ensure that accounts of the same type are within
the same number range. Number intervals for G/L account master records can overlap. You must enter the
account group in the chart of accounts segment; it controls the appearance of the company code segment of
a G/L account. The field status enables you to control the display and maintenance of an account's master
data (You can assign fields that you do not use the status Hide; Fields whose values must not be changed
can have the status Display;; For fields where you must enter a value, you can define the status; Required;
Fields that can contain an entry as Optional. Certain fields are grouped together and their field status is
valid for the entire group, eg. Interest calculation indicator, interest cycle, and last interest calculation key
date.

The fields Account Currency & Field Status Group are always required fields. This status cannot be
changed. (Note: A field that is hidden may still contains values that are taken into consideration.) The
fields are not only controlled by the account group, but also by the transaction. The priorities are: Hide;
Display; Required entry; Optional entry.

 Reconciliation accounts are G/L accounts assigned to the business partner master records
to record all transactions in the sub-ledger and all postings to them are automatically
posted to the assigned reconciliation accounts. The G/L is therefore always up to date.

You define a G/L-account as a reconciliation account by entering one of the following account types in the
field Reconciliation Account for Account Type. D for Accounts Receivable; K for Accounts Payable. The
reconciliation account is then only valid for the account type specified. Typical reconciliation accounts are
"accounts payable" and "accounts receivable" (Note: You cannot post amounts directly to reconciliation
accounts.)
 Transaction figures are the totals of line item postings on the debit or credit side. The
balance is the difference between the debit and the credit transaction figure. The Line
Item Display field is a control field in the company code segment of an account. For
accounts without line item display, only the transaction figures are updated when
documents are posted to these accounts. When a user wants to look at this account online,
they can only view the balance. For accounts with line item display the most important
data from the posted line items is stored in a special index table.

Because data is also stored in the documents, it is redundant and needs additional storage and system time.
When a user wants to look at this account online, they can view both the balance and the individual line
items. Since the line item display takes up additional system resources, you should only use it if there is no
other way of looking at the line items. You should not activate the line item display for:

Reconciliation accounts (line items are managed in the sub-ledgers).

Revenue accounts (line items are managed by the Sales order Management application)

Material stock accounts (line items are managed by the Purchasing Management application)

Tax accounts (Tax items are only useful in connection with the document the tax amounts were already
checked when the document was posted.)

 Items in accounts with open item management are specified as open or cleared Accounts
with open item management must have line item display activated. Open item
management is a prerequisite if you need to check whether there is an offsetting posting
for a given business transaction. You can display open and cleared items separately, and
therefore it is easy to see which business transactions still need to be cleared. You can
only activate or deactivate open item management if account has a zero balance.

You should use open item management for the following accounts: Bank clearing accounts; Clearing
accounts for goods receipt/invoice receipt; Salary clearing accounts.

 You can select one of the following currencies as account currency: Local currency.
Foreign currency. As standard, the local currency is proposed as the account currency
when you create a G/L account. If account currency is the local currency, the account can
be posted to in any currency. The other currencies are translated into the local currency
for each line item. Transaction figures are managed for each currency. This applies
whether or not line item display is activated. If the "Only Balances in Local Currency"
checkbox is set in the master data record, transaction figures are only managed for
amounts converted to the local currency. You should select this field for clearing accounts
where you want to clear accounts by assigning items with the same local currency amount
with one another, without necessitating exchange rate difference postings.

The indicator must be set in cash discount and GR/IR clearing accounts. It must not be set in reconciliation
accounts for customers or vendors. The indicator is usually set in balance sheet accounts that are not
managed in foreign currencies and not managed on an open item basis. Accounts with a foreign currency as
the account currency can only be posted to in this foreign currency.
 The system provides collective processing functions for the G/L account master records.
You can change the master data in the chart of accounts segment, company code
Segment, or the names of several G/L accounts at the same time. The G/L accounts can
be from different charts of accounts. You can make changes to the displayed G/L
accounts. (Note: Changes to existing G/L accounts are effective as soon as they have been
saved and could have far-reaching consequences. You should therefore check your
changes before saving.)

 For internal purposes, cross-company code reporting may be useful, eg, financial
statements that contain the items of several company codes. This is no problem as long as
all company codes use the same chart of accounts. However, some company codes may
have to use special charts of accounts because of legal requirements. If this is the case, the
following procedure applies for internal reporting:

A group chart of accounts can be used. This group chart of accounts must contain all of the group accounts.
The group chart of accounts must be assigned to each operational chart of accounts. After you have done
this, the Group Account Number. Field in the chart of account segments of the operational charts of
accounts becomes a required entry field. You must enter the group account number in the chart of accounts
segment of the operational account. The disadvantage is because the company codes use different
operational charts of accounts; you cannot carry out cross-company code controlling

An alternative to using a group chart of accounts is to use a country chart of accounts. All company codes
use the same operational chart of accounts. Company codes that nevertheless require a special chart of
accounts for external reporting have a country chart of accounts is assigned. The country chart of accounts
number (alternative account number) is entered in every company code segment. Every country chart of
accounts number can only be used once. The disadvantage is accounting clerks who may be familiar with
the country charts of accounts will first have to get used to using the operational chart of accounts .

2.2 Profit Center and Segment

 The field /characteristic segment is the new account assignment object in SAP solutions
in order to create evaluation of objects/entities under company code level. Alternate
account assignment objects used already viz., business area, profit center are still
available

 A business segment is a part of company for which there is corresponding financial

information. From dummy profit center, the posting can be made to real segment.
Derivation of segment can be from profit center information from MM, SD or CO and /or
BADI.

2.3 Customer / Vendor Accounts

 Customer/vendor accounts have two segments in the financial accounting:
 One segment at client level that contains general data: This data can be accessed throughout the whole
organization.
A segment with company code specific data at company code level: Any company code that wishes to do
business with a specific customer or vendor has to create a company code segment for the customer or
vendor.

 Explanatory texts can be entered in every segment. Line item display and open item
management are always preset to one for every customer/vendor account

 When creating customer/vendor master records, you enter the account group on the initial
create screen. In FI, once the customer/vendor account has been created, you can no
longer change the account group. Account Group controls: The number ranges; whether
the account is one time customer or vendor; the status of the field in the master record.

 The layout of customer/vendor master data screens can be affected by several factors: viz;
Account group-specific control; Transaction-specific control; Company code-specific
control: You can Hide, Display, make required, or enter Optional fields with the same
order of priority.

 The system cannot generate IBAN (international bank account number) automatically
from transactions and save in master records. IBAN contains maximum of 34 characters
and is structured differently in every country. It contains country code, bank key and
account number. IBAN can be entered in the master records provided the business
partner provides.

 Customers or vendors who belong to the same corporate group can be bundled together
under user defined group key for reporting purpose. In FI, once the customer/vendor
account has been created you cannot change the account group.

 The identification field appearing on customer/vendor master record automatically

printed on all correspondence if the form has been defined accordingly. Group key is a
user defined key used for grouping customer or vendor for the purpose of reporting.

 You can control the field status of company code segment with respect to company code.
The accounting data for customer or vendor contains: Accounting Information; Payment
Transaction; Correspondence; Insurance; Withholding Tax; Text

 If you define a field in the customer/vendor master record as sensitive, the corresponding
customer/vendor is blocked for payment if entry is changed. You can have one person to
make changes to customer / vendor master data to authorize. However, you need to
customize.

 There is a risk of incomplete or duplicate records for customer / vendor master If there is
no accounting view but there are sales area / purchase organization view, which can be
found out by running a report RFDKAG00 / RFKKAG00 respectively
 If a customer is also a vendor or vice versa, the payment and dunning program can clear
open items against each other. Each company code can decide whether it wants to clear
and you have to select clearing with the vendor in customer account or in the
corresponding field in the vendor account

 You can enter alternative payer/payee record in at client and/or company code level. The
entry for field at client level, also appearing in company code segment has lower priority.
For alternative payer /payee you can use individual indicator set in the invoice which will
permit the information of alternative payer / payee for which master record is not created.
Alternatively, you can create master records and as permitted payer /payee you will have
choice during invoice entry.

 The relationship between head office and branch office in goods flow and cash flow can
be different. Normally, head office receives / makes payments and hence the dunning or
payment for branch office will go to head office. Head office is maintained in the sub-
screen. However, if decentralized field is selected in head office master record, the
dunning and payment programs use branch office.

2.4 Bank Accounts

 For every bank that is used in customer / vendor master or as house bank, you have to
create bank master records which are stored centrally. Bank master records include: bank
name, address, control data such as SWIFT code, bank group etc.

 House bank is created in customizing which contain master data information for
electronic payment transaction; bank accounts per house bank and general ledger account
per house bank. House bank is created from bank master records and has the unique
account ID. You must also define bank accounts that are managed as house banks. The
account can be identified by account ID which is unique to house bank. Each bank
account is reflected in SAP by a combination of house bank ID and account ID. The
combination is entered in G/L account that represents the bank account in G/L. A G/L
account should have different currency as house bank currency.

 When you enter an IBAN for new bank details the system can generate the country-
specific bank details for some specific countries. But the system does not fill the
automatically the IBAN. It can propose IBAN which can be entered manually. ( or
alternatively customer or vendor can be approached for the IBAN number)

In the customer / vendor master data the field Bank Type is used to distinguish between
different banks. When processing invoices the customer / vendor have more than one bank
the user can chose a bank by using match-codes in partner bank field
Related IMG Settings, Application Transactions & Reports

 Define Chart of Accounts :

Accounting ® Financial Accounting ® General Ledger ® Information system ® G/L Reports

®Master data ® Chart of Accounts ® Chart of Accounts (OB13)

 Chart Of Accounts segments):

Accounting ® Financial Accounting ® General Ledger ® Master Records ® G/L Accounts ® Individ-
ual processing ® In Chart of Accounts (FSPO)

 Company Code Segment :

Accounting ® Financial Accounting ® General Ledger ® Master Records ® G/L Accounts ®Individ-
ual processing ® In Company code (FSS0)

 Creating Company Code Segment centrally :

Accounting ® Financial Accounting ® General Ledger ® Master Records ® G/L Accounts

®Individual processing ® centrally (FS00)

 G/L Account list

Accounting ® Financial Accounting ® General Ledger ® Information system ® G/L Reports

®Master data ® G/L account list (S_ALR_87012328 & S_ALR_87012333)

 Balance display:

Accounting ® Financial Accounting ® General Ledger ® Account ® Display balances (New)

(FAGLB03)

Accounting ® Financial Accounting ® General Ledger ® Account ® Display balances (FS10N)

Accounting ® Financial Accounting ® General Ledger ® Account ® Display /Change items (new)
(FAGLl03)

 Document Posting :

Accounting ® Financial Accounting ® General Ledger ® Document Entry ® Enter G/L account
Document. (FB50)

 Collective processing of G/L account master data:

 Accounting ® Financial Accounting ® General Ledger ® Master records ® G/L accounts ®
Collective processing ® Chart of account data (OB_GLACC11)

 Reports:

RFSKPL00 – Chart of accounts directory;

RFSKVZ00 – To view the G/L account directory with chart of account – and company code-
specific data;

RFSKTH00 – Account assignment manual report;

RFSEPA01 – For activate the line item display;

RFBISA00 – Copy new charts of accounts from an external system.

 Customer Master Record:

Accounting ® Financial Accounting ® Accounts Receivable ® Master records ® Display (FD03)

Accounting ® Financial Accounting ® Customers ® Information System ® Reports for Accounts Re-
ceivable Accounting ® Master Data ® Customer list (S_ALR_87012179)

Logistics ® Sales & distribution ® Master data ® Business partner ® Customer ® Display ® Sales &
distribution (VD03)

Accounting ® Financial Accounting ® Accounts Receivable ® Master records ® Maintain Centrally

® Display (XD03) or

S & D - Logistics ® Sales & distribution ® Master data ® Business partner ® Customer ® Display ®
complete (XD03)

 Vendor Master Record

Accounting ® Financial Accounting ® Accounts Payable ® Master records ® Display (FK03)

Accounting ® Financial Accounting ® Accounts Payable ® Information System ® Reports for Ac-
counts Payable Accounting ® Master Data ® Vendor list (S_ALR_87012086)

Logistics ® Materials management ® Purchasing ® Master data ® Vendor ® Purchasing ® Dis-

play(current) (MK03)

Accounting ® Financial Accounting ® Accounts Payable ® Master records ® Maintain Centrally ®

Display (XK03) or

Purchasing - Logistics ® Materials management ® Purchasing ® Master data ® Vendor ® Central

® Display (XK03)

 Incomplete customer/vendor accounts:

 Reconciling customers: Accounting ® Financial Accounting ® Accounts Receivable ®
Master records ® Compare ® S & D-accounting (F.2D)

Reconciling vendors: Accounting ® Financial Accounting ® Accounts Payable ® Master

records ® Compare ® Purchasing-accounting (F.48)

 Change customer/vendor Account groups:

Logistics ® Sales & distribution ® Master data ® Business partner ® Sales Prospect ® Change ac-
count group (XD07)

Logistics ® Materials Management ® Purchasing ® Master data ® Vendor® Central ® Account

Group change (XK07)

 Maintaining the bank directory:

Accounting ® Financial Accounting ® Banks ® Master data ® Bank master record ® Create ( FI01 )

 Create bank master data for a customer:

Accounting ® Financial Accounting ® Customers® Master records ® Change

 Posting vendor invoices

Accounting ® Financial accounting ® AP ® Document entry ® Invoice ( FB60 )

 Posting customer invoices

Accounting ® Financial accounting ® AR ® Document entry ® Invoice ( FB70 )

Questions
1 Which of the following statements are true or false?
a One customer/vendor account can have many reconciliation accounts
b Reconciliation account can be used for the purpose of direct accounting
entries by users
c All the account groups of customers can have one common number range
d One account group of vendors can have up to three no. Ranges

2 Which of the following statements are true?

a One customer can have different customer codes in various company
codes
b One customer can have different reconciliation accounts in various
company codes
c Various company codes can have different payment terms with one
customer
d Chart of account segment is mandatory while entering a customer master

3 Which of the following statements are true?

a For creation of vendor master, account group is not required
b A vendor master cannot be created in the absence of a company code
c Changes in customer or vendor master are tracked and can be seen in SAP.
d You can see unconfirmed changes in the master record

4 Customer and vendors are defined in SAP at following level

a At company code level
b At client level
c At controlling area level
d At company level

5 Which of the following is true in terms of account group and number

range?
a Various account groups can have same no. Range
b One no. Range can be allotted only to one account group
c One account group can have only one no. Range
d One account group can have either external or internal numbering system
e One account group can have one internal and one external numbering
system

6 A customer account can be blocked for the following purposes

a From creating in company codes
b From posting in all company codes
c From posting in selected company codes
d Cannot be blocked at all
e If blocked, is blocked for all the purposes in all the company codes
7
Which of the following statements about creating customer master
records are correct?
a An account group always gets assigned to a customer.
b The company code is always a required entry.
c The account number may be assigned by the user externally.
d Information on each screen may be defined in configuration as mandatory,
suppressed or optional, depending upon the account group.

8 When posting to a one time vendor or customer

a It is possible to store the address details of master records
b The address details have to be entered into the master before the
transaction is entered
c The address details are entered as a part of the transaction
d None of the above

9 Which of the following statements are correct for customer master?

If a customer is also a vendor, the system can include outstanding
a
accounts receivable invoice items in payment program.
If a customer is also a vendor, the system can include outstanding
b accounts payable invoice items when you clear incoming payment receipts
for the customer.
The reconciliation account defined on the customer master record is an
c
account used to reconcile co transactions back to FI.
All customers belonging to the same account group must be assigned to
d
the same reconciliation account.

10 Which of following statements are correct?

a
The customer master data comparison the customers in the legacy system
with the customers in theR/3 system.
The customer master data comparison compares which master records
b are already created in financial accounting but not yet created in sales and
distribution.

c The customer master data comparison compares which master records

are already created in purchasing but not yet in sales and distribution.
d
The customer mater data comparison checks whether the customer
master record contains a telephone number.

Answers
1
a T
b F
c T
d F

2
a F
b T
c T
d F

3
a F
b T
c T
d F

4
a F
b T
c F
d F

5
a T
b F
c T
d T
e F

6
a F
b T
c T
d F
e F

a T
b F
c T
d T

8
a F
b T
c T
d F

a
T
b T
c F
d F

10
a F
b T
c F
d F