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

Sales &
Distribution

FI

Financial
Accounting

CO

MM

PP

Materials
Mgmt.

Controlling

AM

Product
Planning

Fixed Asset
Mgmt.

SAP R/3

QM

Quality
Mgmt.

PS
OC

PM

Plant Maint.

HR
Human
Resources

IS

Project
System

Office &
Comm.

Industry
Solutions

FI Financial Accounting Modules

FI - Financial Accounting Modules
GL

Special Ledger

Travel
Management

Accounts Receivable

FI

LC
TM

AR
CM

AM
&

Asset and Investment

Management

Accounts Payable

AP
L
G

SL
Legal
Consolidation

General Ledger

IM

Cash Management

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

Company

Chart of Accounts

Company Codes

Financial Management Area

A Group

A Grp Common
Chart of Accounts
(YCCA)

A Ltd (9100)
A1 Ltd (9200)

A Grp FM Area
)9100(

Chart of Accounts

The Chart of Accounts

COA
YCCA

Company Code

Company Code

9100 A Ltd

9200 A1 Ltd

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.

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

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

GL Account Groups
A Grp COA

Number Ranges

Account Groups

GL Account Master Record

Chart of
accounts
segment

Description:

B
Au ank
O t. a
th P cc
Ac
er os o
M
c
u
re tin n
at ou
fe g t n
er nt
r e co u
ia g
nc n m
l M ro
b
t
e ro e
gm up
da l r
ta
t :

Acct number: 119430

General Ledger
Balance P&L
P&L
Balance
TT TT TT TT TT
TT TT TT TT TT
TT TT TT TT TT

Inventory Finished goods

Bal. sheet acct:
Inc. statem. acct:

Currency
Tax-related

)Balance c/fwd(

Item management
Posting control...

Company
code
segment

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

Cost Elements Chart of Accounts

A Grp. Chart of Accounts - YCCA
Financial Accounting

1
Assets

1
Current
financial
assets
and
shortterm
capital

2
Liabilities

3
Equity

Expense Revenue
accounts

NonMaterial
Revenue
operainventory Primary
cost
elements
ting
elements
costs,
revenue

9
Secondary
cost
elements

Controlling
Profit Center Accounting

The Cost Element

CO

G/L
accounts

Primary cost elements

Primary cost element
External order settlement

Secondary cost elements

P&L
accounts
Expense accounts

Internal activity allocation

Assessment
Overheads
Internal order settlement

Balance sheet
accounts
Accounts posted
to directly, such as
bank accounts
Accounts posted
to indirectly, such
as reconciliation
accounts

Revenue elements
Revenue element
Sales deduction

FI

Revenue account

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

Create G/L
account posting

Create G/L Posting

Fast Entry

Post Manual
Journal

Holding an incomplete
document
Simulate
)Enough Info
to Complete Posting?(
Yes
Posted Entry

No
Create/Display a Parked
Document

Post/Release a
Parked Document

The Accounting Documents

Header

Document No: 123456

Date: 6/5/1000x
Company Code: 5200
Currency: US$ ,,,,
Debit

800,000
200,000
Total:

Credit

1,000,000

Line items

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

9999999999

02

EX
External numbering 02

9000000000
8000000000

Current numbers

7000000000

01

6000000000

Internal numbering
defined until fiscal
year in the future

5000000000
4000000000

Current numbers

3000000000

00

2000000000

Internal
numbering
defined per fiscal
year

1000000000
0000000000

SB
01

1998

1999

2000

2001...

DR
00

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
no
Relevant for postings
on accounts of this type?
yes

PK ...

Posted with which

posting key?

suppress

Posted on
which account?

PK ...

Priority

Po
de stin
g
sta pend key
tus en t fi
eld

t- t
n
ou den s
c
Ac pen tatu
de ld s
fi e

Account

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

Posting functions

You can now:

Simulate your document - press the Simulate button:

Or post it immediately - press Save button (F11)

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.

2.

3.

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
Document # 1 )Reference Document(:
Header:

01/03/2003

Comp. Code: 5200

Line Items:
PK
40
50
50

Account
123000
345560
907902

Amount
5000
2000
3000

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.

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

Mass Reversal of Documents

Mass Reversal
Procedure

Many documents may be reversed at the same time,

Process may be scheduled to be performed in the background.

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 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

3
You can only
clear open items
for accounts that
are open item
managed.

Open items
represent
transactions
that are
incomplete.

The balance of an open item managed

accounts are the reconciliation items.

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.

Posting Periods
Fiscal Year Variants

Company Code Data

Company Code
FY Variant

0001
R1

K4

Same as Calendar Year

R1
V3

Shortened Fiscal Year

Non-Calendar Fiscal Year

Calendar Year
Year

2003

Periods

Properties
FY Variants
Calendar Year
Year-Dependent
No. of Post. Per.
No. of Special Per.

R1
C
12
2

R1

FY Variants
Mo.
01
02
03
04
:
12

Day
31
28
31
30

Period
10
11
12
01

31

09

Every transaction that is posted is

assigned to a particular posting
period

Year
-1
-1
-1

GL Account Clearing
Automatic
Payment

Bank Statement

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
xxxxxx
-------------------------------

xxxxxx
-------------------------------

xxxxxx
-------------------------------

xxxxxx
-------------------------------

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 ____________
______________________
______________________

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

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

External Reporting

Cash
Income

Flow

FI

Statement

CO

Internal Reporting
Cost
Product
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

Income

Sheet

Statement

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( Press Save button

1( Enter the required

criteria on the selection
screen

3( Enter the variants

name

General Ledger Process Overview

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

General
Ledger

Master
Data

Transaction
Processing

Account
Analysis &
Reconciliation

Periodic
Processing

Reporting