SAP FI General Ledger

Table of Contents

GL Overview Sub Processes

Master Data Transaction Processing Account Analysis / Reconciliation Periodic Processing Reporting

SAP Modules - Overview

Sales & Distribution Materials Mgmt.

SD

Financial Accounting

FI

MM

CO
Controlling Fixed Asset Mgmt.

Product Planning

PP

AM

Quality Mgmt. Plant Maint.

QM

SAP R/3
PM HR
Human Resources Office & Comm.

PS

OC

Project System

IS
Industry Solutions

FI Financial Accounting Modules

FI - Financial Accounting Modules
General Ledger Special Ledger Legal Consolidation Accounts Payable Accounts Receivable

LC TM

FI

Travel Management

Cash Management

Asset and Investment 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
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. organizational units use the same Chart of Accounts: YCCA.

COA YCCA

Company Code 9100 A Ltd

Company Code 9200 A1 Ltd

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

YCCA AA YCCA CASH YCCA EXP YCCA G.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 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

Chart of accounts segment

Acct number: 119430

Inventory Finished goods
Bal. sheet acct: Inc. statem. acct:
(Balance c/fwd)

Description:

Currency Tax-related

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

2
Liabilities

3
Equity

Expense Revenue accounts

1
Current financial assets and shortterm capital

NonMaterial Primary Revenue operainventory cost elements ting elements costs, revenue

9
Secondary cost elements

Controlling Profit Center Accounting

The Cost Element

CO

Primary cost elements Primary cost element External order settlement P&L accounts Secondary cost elements Internal activity allocation Assessment Overheads Internal order settlement

G/L accounts Balance sheet accounts Accounts posted to directly, such as bank accounts Accounts posted to indirectly, such as reconciliation accounts Revenue account

FI

Expense accounts

Revenue elements
Revenue element Sales deduction

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?) No Create/Display a Parked Document

Yes Posted Entry

Post/Release a Parked Document

The Accounting Documents

Document No: 123456
Date: 6/5/1000x Company Code: 5200 Currency: US$ ,,,, Debit Credit

Header

1,000,000 800,000 200,000

Line items

Total:

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

9000000000
8000000000 7000000000 6000000000 Current numbers

External numbering

01 Internal numbering defined until fiscal year in the future Current numbers 00 Internal numbering defined per fiscal year 1998 1999 2000 2001...

5000000000
4000000000 3000000000 2000000000 1000000000 0000000000

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 Posted with which posting key? PK ... PK ... Posted on which account? suppress

Account

Priority

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 Document currency Group currency - Functional currency of the company code - Currency of the document - 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:
Line Items:
PK 40 50 50 Account 123000 345560 907902 Amount 5000 2000 3000

01/03/2003

Comp. 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.

Reverse a GL document

Document entered incorrectly

Balance sheet Assets
Liabilities

Document corrected by Reversal:

Shared equity

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 2

3
Open items represent transactions that are incomplete. You can only clear open items for accounts that are open item managed.

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
Company Code Data Company Code FY Variant 0001 R1 Fiscal Year Variants K4 R1 V3 Same as Calendar Year Shortened Fiscal Year Non-Calendar Fiscal Year

Calendar Year
Year 2003

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

Periods

R1
C 12 2

FY Variants Mo. Day 01 31 02 28 03 31 04 30 : 12 31

R1
Period 10 11 12 01 09 Year -1 -1 -1

Every transaction that is posted is assigned to a particular posting period

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 Income

Cash Flow

FI

External Reporting

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 Sheet

Income 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 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