SAP FI GL PPT

SAP FI

Table of Contents



GL Overview



Sub Processes

Master Data Transaction Processing

Account Analysis / Reconciliation Periodic Processing

SAP Modules - Overview

Sales & Distribution SD MM PP QM PM HR FI CO AM PS OC IS Materials Mgmt. Product Planning Quality Mgmt. Plant Maint. Human Resources Financial Accounting Controlling Fixed Asset Mgmt. Project System Office & Comm. Industry Solutions

SAP R/3

FI – Financial Accounting Modules

FI - Financial Accounting Modules

FI

Accounts Payable Cash Management Special Ledger LC Legal Consolidation TM Travel Management

Asset and Investment Management

General Ledger

Financial Accounting / Controlling



Financial Accounting

• Legal / Statutory Accounts

• Standard Ledgers

• Master Data Integrates with Controlling



Controlling

• Management Accounts

A Group Hierarchical Structure

A Grp Common Chart of Accounts (YCCA) Company Chart of Accounts Company Codes

Financial Management Area A Grp FM Area

(9100) A Ltd (9100) A1 Ltd (9200)

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

General Ledger Process Overview

Transaction Processing Master Data General Ledger Account Analysis & Reconciliation Reporting Financial Accounting Periodic Processing

Master Data



Account Groups



Maintenance

• Creation at 2 Levels

• Chart of Accounts Data • Company Code Data

• Change

• Block

• Delete



Cost Elements

GL Account Groups

YCCA AA 120001 120299 Fixed Assets Accounts YCCA CASH 110000 118999 Liquid Funds Accounts YCCA EXP 400000 499999 Expense Accounts

YCCA G.BS 100000 399999 General Balance Sheet Accounts YCCA MAT 100000 899999 Material Management Accounts YCCA REV 800000 899999 Revenue Accounts

A Grp COA

Account Groups

GL Account Master Record

• Item management • Posting control... • Currency • Tax-related Acct number: 119430

Inventory – Finished goods

Bal. sheet acct: Inc. statem. acct:

Chart of accounts segment Company code segment Description: (Balance c/fwd) General Ledger Balance P&L T T T T T T T T T T T T T T T Balance P&L T T T T T T T T T T T T T T T

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

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

9 Controlling Controlling Revenue elements 1 2 3 Assets 4 Liabilities Equity Financial Accounting Financial Accounting Expense accounts 8 Revenue

Profit Center Accounting

Profit Center Accounting

1 Current financial assets and short - term capital 2 Non - opera - ting costs, revenue 3 Material inventory

Cost Elements – Chart of Accounts

A Grp. Chart of Accounts - YCCA

Primary cost elements Secondary cost elements 4 8

Primary cost elements

Primary cost element External order settlement

Secondary cost elements

Internal activity allocation Assessment

Overheads

Internal order settlement

Revenue elements

Revenue element Sales deduction

Revenue account

Expense accounts Accounts posted to directly, such as bank accounts Accounts posted to indirectly, such as reconciliation accounts Balance sheet accounts P & L accounts G/L accounts FI FI CO CO

General Ledger Process Overview

Transaction Processing Master Data General Ledger Account Analysis & Reconciliation Reporting Financial Accounting Periodic Processing

Transaction Processing

SAP R/3 supports the following transactions:



Journal (JV) Processing

• Document Principle

• Document Structure



Foreign Currency documents



Parked documents



Posting with Reference

Document Posting: Activity Flow

Create G/L account posting Create G/L Posting Fast Entry Simulate (Enough Info to Complete Posting?) No Posted Entry Post Manual Journal Create/Display a Parked Document Post/Release a Parked Document Yes Holding an incomplete document

The Accounting Documents

Header Line items Document No: 123456 Date: 6/5/1000x Company Code: 5200 Currency: US$ ,,,, Total: Debit Credit 1,000,000 800,000 200,000 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

Document Number Ranges

0000000000 1000000000 2000000000 3000000000 4000000000 5000000000 6000000000 7000000000 8000000000 9000000000 9999999999 00 01 02 Internal numbering

defined per fiscal year

External numbering

Internal numbering defined until fiscal year in the future Current numbers

1998

Current numbers

The Document’s 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 ? Priority Account yes no suppress

Posted with which posting key?

Posted on

which account?

PK ... PK ...

Relevant for postings on accounts of this type?

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



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 there’s 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.

3. 2.

1. Exchange rate can be entered manually, 2. Or derived from “Exchange Rates Table”

3. System automatically translates the foreign currency

Parking / Holding a Document



After entering the document it is possible:

• To post it immediately

• To “park” the document

Reference Documents

Header: 01/03/2003 Comp. Code: 5200

Document # 1 (Reference Document):

Line Items: PK Account Amount 40 123000 5000 50 345560 2000 50 907902 3000 Document # 2: Line Items: PK Account Amount 40 123000 5000 50 345560 2000 50 907902 3000

 Reference documents are either accounting documents or sample

Reverse a GL document

Document entered incorrectly

Document corrected by Reversal:

Reverse with a standard reversal posting

Reverse with a negative posting

Document re-entered correctly

Balance sheet Assets Liabilities

Mass Reversal of Documents

 Many documents may be reversed at the same time,

 Process may be scheduled to be performed in the background.

Mass Reversal Procedure

General Ledger Process Overview

Transaction Processing Master Data General Ledger Account Analysis & Reconciliation Reporting Financial Accounting Periodic Processing

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

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

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

Account Analysis Functions



Functions supporting

account analysis are

grouped on the

Open Item Clearing

1 2

3

The balance of an open item managed accounts are the reconciliation items. Open items

represent transactions that are

incomplete.

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

Reversal of Clearing

 Reversal of documents that were cleared before is not possible,

 First the clearing operation must be reset.

Display cleared items

General Ledger Process Overview

Transaction Processing Master Data General Ledger Account Analysis & Reconciliation Reporting Financial Accounting Periodic Processing

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

Posting Periods

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

K4 Same as Calendar Year Shortened Fiscal Year V3 Non-Calendar Fiscal Year

Company Code Data Fiscal Year Variants

Company Code 0001 FY Variant R1 R1 Calendar Year Year 2003 Periods FY Variants

Mo. Day Period Year

01 31 10 -1 02 28 11 -1 03 31 12 -1 04 30 01 : 12 31 09 Properties FY Variants Calendar Year Year-Dependent C No. of Post. Per. 12 No. of Special Per. 2

GL Account Clearing

Bank Statement Automatic

Payment

 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

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 ____________ ______________________ ______________________ 03/01/2002 ___________________ ___________________ ___________________ 02/01/2002 ___________________ ___________________ ___________________ 01/01/2002 ___________________ ___________________ ___________________ Batch Input Session

Recurring Entry Document (2)

Dates when the first and the last recurring entries are to be carried out

Document „s Header

General Ledger Process Overview

Transaction Processing Master Data General Ledger Account Analysis & Reconciliation Reporting Financial Accounting Periodic Processing

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.)

Reporting Requirements

Balance Sheet _Income Statement Cash Flow Internal Reporting External Reporting FI CO 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

2 1

SAP Menu

Transaction SA38



A user can run the required report in two ways:

• Directly from “Report Tree”

Report Tree

2 1

SAP Menu

Transaction SA38



A user can run the required report in two ways:

• Directly from “Report Tree”

Report Execution

Selection of Report Parameters Report Execution

Variant Selection Dynamic selection



A report can be executed directly or scheduled in the

background

Report Variant

1) Enter the required criteria on the selection screen

1 2

3

2) Press “Save” button

3) Enter the variant‟s name

General Ledger Process Overview

Transaction Processing Master Data General Ledger Account Analysis & Reconciliation Reporting 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

Periodic Processing