2. Table of Contents
GL Overview
Sub Processes
• Master Data
• Transaction Processing
• Account Analysis / Reconciliation
• Periodic Processing
• Reporting
3. SAP Modules - Overview
SD
Sales &
Distribution
MM
PP
QM
PM
HR
FI
CO
AM
PS
OC
IS
Materials
Mgmt.
Product
Planning
Quality
Mgmt.
Plant Maint.
SAP R/3
Human
Resources
Financial
Accounting
Controlling
Fixed Asset
Mgmt.
Project
System
Office &
Comm.
Industry
Solutions
4. FI – Financial Accounting Modules
FI - Financial Accounting Modules
FI
AP
Accounts Payable
CM
Cash Management
SL
Special Ledger
LC
Legal
Consolidation
Travel TM
Management AM
&
IM
Asset and Investment
Management
General Ledger
GL
AR
Accounts Receivable
GL
7. A Group Hierarchical Structure
A Group
A Grp Common
Chart of Accounts
(YCCA)
Company
Chart of Accounts
Company Codes
A Ltd (9100)
A1 Ltd (9200)
Financial Management Area A Grp FM Area
)9100(
8. 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
9. 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.
10. General Ledger Process Overview
Transaction
Processing
General
Ledger
Master
Data
Account
Analysis &
Reconciliation
Reporting
Financial
Accounting
Periodic
Processing
11. Master Data
Account Groups
Maintenance
• Creation at 2 Levels
• Chart of Accounts Data
• Company Code Data
• Change
• Block
• Delete
Cost Elements
• Creation
12. GL Account Groups
A Grp COA
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
Account Groups
Number Ranges
13. GL Account Master Record
• Item management
• Posting control...
• Currency
• Tax-related
AAcccctt nnuummbbeerr:: 11119943300
IInnvveennttoorryy –– FFiinniisshheedd ggooooddss
BBaall.. sshheeeett aacccctt::
IInncc.. ssttaatteemm.. aacccctt::
CChhaarrtt ooff
aaccccoouunnttss
sseeggmmeenntt
Company
code
segment
DDeessccrriippttiioonn::
))BBaallaannccee cc//ffwwdd(
General Ledger
Balance P&L
T T T T T
T T T T T
T T T T T
BBaallaannccee PP&&LL
TT TT TT TT TT
TT TT TT TT TT
TT TT TT TT TT
Account group:
Material Mgmt
Bank account number
Aut. Posting control
Other reference data
14. 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
15. 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
16. Cost Elements – Chart of Accounts
9
A Grp. Chart of Accounts - YCCA
Revenue
elements
CCoonnttrroolllliinngg
FFiinnaanncciiaall AAccccoouunnttiinngg
1 2 3
Assets
4
Liabilities Equity
Expense
accounts
8
Revenue
PPrrooffiitt CCeenntteerr AAccccoouunnttiinngg
1
Current
financial
assets
and
short-term
capital
2
Non-opera-ting
costs,
revenue
3
Material
inventory
Primary
cost
elements
Secondary
cost
elements
4 8
17. CCOO FFII
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
Balance sheet
accounts
Expense accounts Accounts posted
Revenue account
to directly, such as
bank accounts
Accounts posted
to indirectly, such
as reconciliation
accounts
P & L
accounts
G/L
accounts
The Cost Element
18. General Ledger Process Overview
Transaction
Processing
General
Ledger
Master
Data
Account
Analysis &
Reconciliation
Reporting
Financial
Accounting
Periodic
Processing
19. 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
20. 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
21. The Accounting Documents
Header
Line items
DDooccuummeenntt NNoo:: 112233445566
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
assigns the document numbers automatically.
22. Document Number Ranges
9999999999
9000000000
8000000000
7000000000
6000000000
5000000000
4000000000
3000000000
2000000000
1000000000
0000000000
02
External numbering
01
Internal numbering
defined until fiscal
year in the future
00
Internal
numbering
defined per fiscal
year
Current numbers
Current numbers
1998
EX
02
SB
01
DR
00
1999 2000 2001...
23. 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.
24. Posting keys
Field
Account-dependent
field status
Posting key-dependent
field
status
?
Priority
Account
yes
no suppress
Posted with which
posting key?
Posted on
which account?
PK ...
PK ...
Relevant for postings
on accounts of this type?
25. 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.
26. Posting a document
Document entered
correctly
You can now:
Posting functions
Simulate your document - press the “Simulate” button:
Or post it immediately - press “Save” button (F11)
27. 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
28. 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
into CC currency.
29. Parking / Holding a Document
After entering the document it is possible:
• To post it immediately
• To “park” the document
• To hold the document
30. Reference Documents
Document # 1 (Reference Document):
Header: 01/03/2003 Comp. Code: 5200
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
documents that are used as a reference to post an accounting document.
31. 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
Shared equity
32. 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.
33. General Ledger Process Overview
Transaction
Processing
General
Ledger
Master
Data
Account
Analysis &
Reconciliation
Reporting
Financial
Accounting
Periodic
Processing
34. 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
35. 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
36. 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
37. Account Analysis Functions
Functions supporting
account analysis are
grouped on the
“Application toolbar”
38. 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.
39. 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.
40. General Ledger Process Overview
Transaction
Processing
General
Ledger
Master
Data
Account
Analysis &
Reconciliation
Reporting
Financial
Accounting
Periodic
Processing
41. 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.
42. Posting Periods
Company Code Data Fiscal Year Variants
Company Code 0001
FY Variant R1 R1
K4 Same as Calendar Year
Shortened Fiscal Year
V3 Non-Calendar Fiscal Year
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
R1 R1
Every transaction that is posted is
assigned to a particular posting
period
43. 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.
44. 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
45. 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
46. Recurring Entry Document
PPoossttiinngg PPaarraammeetteerrss
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
47. Recurring Entry Document (2)
Dates when the first and the last recurring entries are to be
carried out
Document ‘s
Header
Line items
48. General Ledger Process Overview
Transaction
Processing
General
Ledger
Master
Data
Account
Analysis &
Reconciliation
Reporting
Financial
Accounting
Periodic
Processing
49. 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
50. Reporting Requirements
Balance
Sheet Income
Statement
Cash
Flow
External Reporting
Internal Reporting
FI
CO
Product
Cost
Cost
Center Profit
Center
51. 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
52. Report Tree
2
1
SAP Menu
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
53. Report Tree
2
1
SAP Menu
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
54. Report Execution
Selection of Report Parameters
Report Execution
Variant Selection Dynamic selection
A report can be executed directly or scheduled in the
background
55. Report Variant
1) Enter the required
criteria on the selection
screen
2
1
3
2) Press “Save” button
3) Enter the variant’s
name
56. General Ledger Process Overview
Transaction
Processing
General
Ledger
Master
Data
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
Editor's Notes
Page <number>
HR
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.
Travel Management manages and calculates travel costs and supports travel planning and travel expenses.
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.
Page <number>
HR
Different types of accounts can be bundled into different “account groups”. Usually one account group bundles accounts with the same tasks within the general ledger
By assigning a number range to an account group, you can ensure that accounts of the same type are within the same number range. Number intervals for G/L account master records can overlap.
The GL account master record is divided into two segments: A chart of accounts segment and a company code segment.
The chart of accounts area contains the data that is valid for all company codes, such as the account number.
The company code specific area contains data that may vary from one company code to another, such as the currency in which the account may be posted.
The result is that individual company codes can control their business processing requirements, yet the common chart of accounts provides reporting capabilities across company codes.
There are available three different transactions to create a new GL account:
FS00: centrally
FSP0: in chart of accounts (only)
FSS0: in company code
Page <number>
HR
Page <number>
HR
The chart of accounts (YCCA) contains all the general ledger (G/L) accounts belonging to Financial Accounting.
From the cost controlling viewpoint, a circular system exists because the expense and revenue accounts in Financial Accounting correspond to primary cost and revenue elements in Controlling, and because postings in FI are passed on in real-time to Cost and Revenue Element Accounting (CO-OM-CEL).
In addition, it is only in Controlling that you can create secondary cost elements. These are used to record internal value flows like activity allocations, assessments and settlements.
The integrated nature of the R/3 System means that you need to create expense accounts in Financial Accounting with corresponding primary costs elements in Controlling. This ensures that you can reconcile expenses in FI with primary costs in CO. Before you can create primary cost elements in CO, you first need to create them as G/L accounts in FI.
To be able to post to a primary cost element, you require a cost-carrying object (such as a cost center) to identify the origin of the costs. Examples of primary cost elements are material costs and salary costs.
Secondary costs elements are used exclusively in CO to identify internal cost flows such as assessments or settlements. They do not have corresponding general ledger accounts in FI and are defined in CO only.
When you analyze revenues in cost controlling, the R/3 System records them as revenue elements. Revenue elements are primary cost elements.
When you create a cost element, you must assign a cost element category. This assignment determines the transactions for which you can use the cost element. For example, category 01 (general primary cost elements) is used for the standard primary postings from Financial Accounting or Materials Management.
Page <number>
HR
An accounting document represents within the SAP R/3 system the “real” document (an invoice for example) that triggered the posting.
Accounting documents consist of one or more line items (postings), each of which represents an individual transaction posted to an account.
The document header contains information that applies to the entire document, such as the document date and document number.
The line item is that part of a document containing information on a single item. It always includes an amount, an account number, the assignment to debits or credits and further specifications which depend on the business transaction to be posted.
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 document date is the date on which the original document (such as customer invoice) was created.
The posting date is used by the system to determine the accounting period in which the document will be updated. It represents the date on which posting becomes effective.
The translation date is the date on which an amount is translated into another currency.
The entry date is the date on which the document is entered on the system. SAP R/3 uses the system date to enter in this field.
Every line item contains the posting key. The posting key defines:
The account type to be posted
Whether it is a debit or credit posting
Which fields of the line item may have or require an entry
In the new Enjoy transaction, you no longer need to enter the posting key. It does, however, appear in the document and its control functions are still relevant.
When you post a invoice in a foreign currency, you enter the appropriate foreign currency key in place of the local currency key, USD that is defaulted by the SAP R/3. The system stores the amount in both local currency and foreign currency in each line item and checks whether the currency key has been defined and is therefore permitted.
The amount is entered in only one currency, as the system translates this amount into the other currency automatically.
Normally you will use the exchange rate defined in the exchange rate table.
If the exchange rate on the invoice is different than default daily rate the currency exchange rate table can be overridden by entering an exchange rate manually (in the document header), or entering the local/foreign currency amount at line item level.
When posting a document, it is sometimes easier to use a previously posted document as a reference.
In this example, the user copies an existing document to post the new one. This is done by simply indicating the “Reference Document” at the time of posting.
“Nobody’s perfect”. As a result, the posted document may contain incorrect information.
The system provides a function to reverse G/L, A/R and A/P documents both individually or in mass process.
A document may be reversed either by:
entering a standard reversal posting or
entering a negative posting.
To reverse a document user must enter the reason code.
Documents with cleared items cannot be reversed. The clearing document must first be reset.
Page <number>
HR
An account balance shows:
The opening balance (from the previous year),
Total of all transactions per posting period, broken down into debits and credits (transaction figures).
Using these figures the system also calculates the balance per posting period, and the accumulated balance of the account.
Using the report “account line items” you can display the document for each line item by drilling-down on the relevant line item in the line item list.
Both reports can be exported directly to MS Excel or Word, or send by e-mail,
You can display items from more than one G/L account (cross-company code) in a list or you can change individual documents and carry out mass changes to posted line items from the list.
An account balance shows:
The opening balance (from the previous year),
Total of all transactions per posting period, broken down into debits and credits (transaction figures).
Using these figures the system also calculates the balance per posting period, and the accumulated balance of the account.
Using the report “account line items” you can display the document for each line item by drilling-down on the relevant line item in the line item list.
Both reports can be exported directly to MS Excel or Word, or send by e-mail,
You can display items from more than one G/L account (cross-company code) in a list or you can change individual documents and carry out mass changes to posted line items from the list.
Under line item selection you can choose the status and type of items you want to display.
The selection criteria enable you to restrict the items for displaying with various criteria.
You can display individual accounts or a defined account group using the dynamic selection transaction.
The line item list can be displayed according to various line layout options. You can create your own line layout variants.
In the line item list, you can navigate to individual documents and access additional information.
You can access the account master record directly from the line item display screen.
You can print the line item list.
You can choose display -> change in the document display transaction to make the document changes that are permitted by the system.
Page <number>
HR
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.
Page <number>
HR
To prevent documents from being posted to a wrong posting period, desired periods can be opened and closed.
Up to 4 “Special periods” may be defined. They are used e.g. for entering documents, relating to year-end closing (auditor’s requests etc.)
The program groups together items from an account that have the same reconciliation account number, currency, and Special G/L indicator, as well as pre-defined criteria from the document header or item such as the allocation field, reference number and amount.
If the balance, in local currency, of the items within a group is zero, the system automatically clears them and creates clearing documents.
Prerequisites for using the automatic clearing program:
Accounts must be managed on an open item basis.
Accounts to be cleared must be defined in customizing.
The automatic payment program does not clear noted items, statistical posting, down payments, bills of exchange and items with withholding tax entries.
When clearing open items in a foreign currency, differences may occur due to fluctuations in exchange rates. The system automatically posts these differences as realised gains or losses.
Accruals: recognition of expenses and revenues that have not been paid or received as of the year end. Examples: wages, interest expense and revenue, utility costs. The expense or revenue is recorded before the cash flow.
Deferrals: recognition of expenses and revenues at year end which were not recognized at time of payment or receipt of cash during the year. Examples: rent expense (expiration of prepaid rent paid during the year), service revenue (reduction of unearned revenue received during the year, before providing service). The expense or revenue is recorded after the cash flow.
Recurring entries are very effective in streamlining data processing for transactions that occur on a regular basis.
To save time and streamline month-end processing, you use recurring entries to post these transactions.
Additionaly, SAP offers a number of reports that meet country-specific requirements. There is a list of country-specific reports for completing VAT tax forms and reports for additional legal reporting requirements
While there are often different accounting information requirements for internal and external users, much of the underlying data may be relevant for both purposes. But that same data can be presented in very different ways to satisfy the different requirements.
Standardized accounting intended for external users is sometimes termed “financial accounting”. The term “management accounting” generally refers to the non-standardized accounting approach that supports the management decision-making process.
Financial accounting reports typically required include the income statement (or profit & loss statement), and balance sheet. Management accounting reports can be completely unique, although a common example could be departmental actual vs. plan costs for the current accounting period.
Several report variants can be created for a single report so that different users can access the same report with their own specific data
Report variants allow user to access the required data quickly and easily
