SAP FI General Ledger

Table of Contents

GL

Overview Sub Processes

Master Data Transaction Processing Account Analysis / Reconciliation Periodic Processing Reporting

Financial Accounting / Controlling

Financial Accounting
Legal / Statutory Accounts Standard Ledgers Master Data Integrates with Controlling

Controlling
Management Accounts Manage Budget Expenditure

General Ledger - Integration

The general ledger holds all accounts for balance sheet and income (profit and loss) statements. The general ledger contains a number of sub ledgers: Accounts Payable records all accounting transactions for dealings with suppliers. Much of its data is obtained from procurement (Materials Management). Accounts Receivable records all accounting transactions for dealings with customers. Much of its data is obtained from Sales and Distribution. Asset Accounting records all accounting transactions relating to the management of assets. Bank ledger supports the posting of cash flows. All general ledger account postings that post to business expense accounts automatically send the expenses as costs to Controlling. The balances of general ledger accounts are used to calculate financial statements.

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
COA YCCA 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 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 Interval

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 P&L Balance 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 Expense accounts 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

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

Each type of document is assigned to a number range. The document number range is the key which identifies each document in a company code and defines the allowable range in which a document number must be positioned and cannot overlap. The document number range has to be defined for the year in which it is used. Document number ranges can be defined: Until a fiscal year in the future: At the beginning of each fiscal year the system continues to take the next number after the current number. It does not restart at the lower limit. Per fiscal year: At the beginning of each fiscal year the document numbering starts again at the lower limit. This helps to avoid reaching the upper limit of a range. One number range can be assigned to several document types.

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 Open items are incomplete transactions, such as an invoice for which goods or services have not yet been received. In order for an open item transaction to be considered complete, the transaction must be cleared. A transaction is considered cleared when an offset value is posted to it, so that the resulting balance of the items is zero. In the above example:
Two invoices are posted to the Customer account. These invoices are regarded as the open items because at this point the corresponding payment has not been received. The payment is received and the invoices are set off against it. The transaction is now cleared and the resulting balance is zero.

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
Product
Cost 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) Click 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