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Procurement of Financial Management System (FMIS)

Electricite du Laos (EDL)

Financial Accounting

GENERAL LEDGER (G/L)

Speaker:
Vientiane, 2017

www.fis.com.vn
G/L OVERVIEW
TRAINING OBJECTIVES

At completion of this course, you


will be able to:
Understand G/L purpose, benefits
and key concepts
Understand main functions and
business processes within G/L
module
CONTENTS

1. G/L OVERVIEW & BENEFITS

2. G/L MASTER DATA & BASIC CONCEPTS

3. G/L BUSINESS PROCESSES

4. SUMMARY
1.1 G/L OVERVIEW

The general ledger (G/L) contains all financial transactions and


their summarizations for a defined reporting entity, for example a
company.
1.1 G/L OVERVIEW

Controlling (CO)

Account receivable (AR) Account payable (AP)

General ledger (GL)

Asset accounting (AA)


Cash management (CM)

Financial reports
1.2 BENEFITS

Tracking real-time processing


status
Decreasing invoice processing
time
Generating various Reporting
Recording all business
transaction ensures complete
and accurate accounting data
CONTENTS

1. G/L OVERVIEW & BENEFITS

2. G/L MASTER DATA & BASIC CONCEPTS

3. G/L BUSINESS PROCESSES

4. SUMMARY
2. MASTER DATA & BASIC CONCEPTS

Company code (CC)

A company code is an independent accounting entity (the smallest


organizational element for which a complete self-contained set of
accounts can be drawn up). It has a unique, four character key.
The general ledger is kept at the company code level and is used to
create the legally required balance sheets and profit/loss statements.
2. MASTER DATA & BASIC CONCEPTS

Company code (CC)


E.g.
2. MASTER DATA & BASIC CONCEPTS

Chart of Accounts
Each general ledger is set up according to a chart of accounts. The chart
of accounts contains the definitions of all G/L accounts in an ordered
form; consist mainly of the account number, account name, and the type
of G/L account.

A chart of accounts can be used by multiple company codes. The


general ledgers of these company codes have the identical structure.
2. MASTER DATA & BASIC CONCEPTS

Company code Specific Settings


Account definition in CoA

Cash

PLUS PLUS

Company code Company code


specific settings specific settings

Head Office Transmission


(CC 1000) (CC 2000)

Cash account in Head Office Cash account in Transmission


2. MASTER DATA & BASIC CONCEPTS

A G/L account is an item within the General Ledger, is used for creation
of Financial Statement (e.g. Balance Sheet and Profit/Loss Statement)

In order to organize and manage a large number of G/L accounts better,


they are arranged in account groups
2. MASTER DATA & BASIC CONCEPTS

Line items contain information relating to account number, amount,


debit/credit, etc.
In FI document (accounting document), it refers to a credit/debit
transaction against a particular G/L account.
2. MASTER DATA & BASIC CONCEPTS

Account Types: When posting line items, there are 5 types of


accounts that may be entered: Asset, Customer, Vendor,
Material, and G/L Account.

No. Account Type Description


1 A Asset
2 D Debtors (Customer)
3 K Creditors (Vendors)
4 M Materials
5 S General Ledger
6 + Represents all of the above
2. MASTER DATA & BASIC CONCEPTS

Posting key is a 2 digits numerical key that determines the type of


transaction entered in a line item

Posting key determines:


a. Account Types (Assets, General Ledger, Customer, Vendor,
Material)
b. Type of postings (Dr, Cr)
E.g.
Account Type Debit (Dr) Credit (Cr)
General Ledger 40 50
Asset 70 75
Vendor 21 31
Customer 01 11
2. MASTER DATA & BASIC CONCEPTS

Document type: a key that distinguishes the business transactions to


be posted. The document type determines where the document is
stored and specifies the account types to be posted.

E.g. Some document types are used in FI module:


SA: G/L account document
KR: Vendor invoice
DR: Customer invoice
KZ: Vendor payment
DZ: Customer payment
ZP: Payment document

Each document is assigned to one document type, and this is entered in


the document header. Document numbers are provided by the
document number ranges assigned to one or more document types.
2. MASTER DATA & BASIC CONCEPTS

Document header contains information that is valid for the


whole document such as:
- Document Date
- Document Type (Control information)
- Document Number
- Posting Date
- Posting Period
- Company Code

Other information can be editable later such as:


- Document header text
- Reference
2. MASTER DATA & BASIC CONCEPTS

A fiscal year is the twelve-month period over which an entity reports on


the activities that appear in its annual financial statements. This period
does not have to correspond to the calendar year.

The currencies are defined per the international ISO standard. Each
currency is represented by a three-character ISO code (LAK, USD, VND,
etc.). Currency is one of Company Code specific setting.

SAP maintains exchange rates in the exchange rate table for accurate
currency translation.
CONTENTS

1. G/L OVERVIEW & BENEFITS

2. G/L MASTER DATA & BASIC CONCEPTS

3. G/L BUSINESS PROCESSES

4. SUMMARY
3. BUSINESS PROCESSES

1 Journal voucher posting process

2 Journal voucher adjustment

3 Month end process

4 Year end process

5 G/L Accounts Management Process

6 T-code List of Main Reports


3.1 Journal voucher posting process

Create a G/L document

Create recurring entry


3.1.1a Create a G/L document

Objective:
This process is used to record transactions which were not posted in
other submodule (not track partner information)
For example: record salary expense; record prepaid expense, etc.

Check
Record
Recorded
Transaction
Document
3.1.1a Create a G/L document
3.1.1a Create a G/L document
3.1.1a Create a G/L document

Documents can later be called on for completion and posting. While


parking a document, the system does not carry out the mandatory
validity checking and the transaction figures (account balances) are
not updated.

During a transaction when you do not have a piece of required


information, you can Hold the Document and complete it later. As in
the case of parked documents, here also the document does not
update the transaction figures.
3.1.1b Check posted document
3.1.2 Create recurring entry

Objective:
Create recurring entry for transactions that happen regular such as:
Interest from lending, Rent expense, insurance expense, etc.

Create Run
Create View Delete
recurring program
recurring recurring recurring
entry to create
entry entry entry
batch document
3.2 Journal voucher adjustment

Objective:
This process is applied to adjust or delete posted transactions in the
system.

Cancel
Update general
incorrect
information
document
3.2.1 Update general information
3.2.2 Cancel incorrect document

Reversal Reason
- Negative Posting
- Reversal Posting
3.3 Month-end process

Objective:
This process is used to handle operations at the end of the month:
close current period and open next period, clear GRIR account,
categorize GRIR account and make adjustment.
Assess exchange rate difference.

Open the Categorize Foreign Close


Clear GRIR Make
next GRIR Currency current
account adjustment
period account Valuation period
3.3 Month-end process

Opening period (OB52)


3.3 Month-end process

The GR/IR (Goods Receipt Invoice Receipt) account is an intermediary


clearing account in SAP for goods and invoices in transit.
The account gets cleared after the Invoice (IV) is done.

1. After GRN is raised:


Dr. Material A/c
Cr. GR/IR A/c

2. After IV is done:
Dr. GR/IR
Cr. Vendor A/c

3. After payment:
Dr. Vendor A/c
Cr. Bank
3.4 Year-end process

Objective:
This process is used to handle operations at the end of the year.

Foreign
Open the next Currency Make Run balance
period Valuation adjustment carry forward
3.4 Year-end process

Carry forward Receivables/Payables (F.07)


3.4 Year-end process

Carry forward G/L balances (FAGLGVTR)


3.5 G/L Accounts Management Process

Objective:
- This process is used for managing information of GL accounts in the
system.
- Each account in system can be created at 2 level:
- Chart of account
- Company Code

Create a new
Create/Update GL account at
Create/update
at Company Company code
at COA level
code level level existed at
COA

FS00 FSS0 FSP0


3.6 T-code List of Main Reports

T-Code Description
S_ALR_87012333 G/L Accounts List

S_ALR_87012332 G/L Account Statements

S_PL0_86000030 G/L Account Balances (New)

S_ALR_87012301 Totals and Balances

S_PL0_86000028 Financial Statement: Actual/Actual Comparison

S_PL0_86000029 Financial Statement: Plan/Actual Comparison

S_ALR_87012284 Financial Statement


3.6 T-code List of Reports

Financial Statement (S_ALR_87012284)


CONTENTS

1. G/L OVERVIEW & BENEFITS

2. G/L MASTER DATA & BASIC CONCEPTS

3. G/L BUSINESS PROCESSES

4. SUMMARY
4. SUMMARY

The general ledger contains a record of


all relevant accounting transactions
from a business point of view in the G/L
accounts.

G/L integrates highly with other


submodules in FI and generates real-
time reporting.
Q&A
THANK YOU!