SAP Financials General Ledger Accounting


Published on

This Document relates to G/L account master data, Business transactions, Periodic processing, Reporting Configuration.

Published in: Software, Technology, Business

SAP Financials General Ledger Accounting

  1. 1. SAP FINANCIALS GENERAL LEDGER ACCOUNTING SAP KNOWLEDGE SHARING DOCUMENTS SAP IDES DEMO SOLUTION – ERP6 EHP5 Pramila Nagaraj SAP Certified Candidate @ Source One Management Services Pvt. Ltd Bangalore 2014 Copy Rights © SourceOne Management Services Pvt. Ltd Bangalore
  2. 2. General Ledger Accounting We have already covered the benefits of the new G/L; we will be covering the following  G/L account master data  Business transactions  Periodic processing  Reporting Master Data Master data in the G/L accounting is made up of G/L master data, profit center master data and segments, we will cover the master data here. The G/L master data determines an account's function, controlling the posting of accounting to G/L these master records help process the transaction postings, each G/L master record is made up of the following Chart of Accounts Area The data that is valid across all company's codes such as the following  account number  description (long and short text)  control fields (account group, sample account, P&L statement account type, balance sheet account and function area)  consolidation fields This also contains information about "created by", "created on" and "group chart of accounts" Company Code Area This area contains several groups of data Group Name Sub-Group Fields Control Data Account Control Account currency, valuation group, tax category, alternative account numbers, tolerance group, inflation key, etc. Account Management Open item management, line item display, sort key, authorization group, etc Joint Venture Recovery indicator Create/bank/ interest Document Creation Field status group, post automatically only and supplement automatic postings Bank/Finance Details Planning level, commitment item, house bank, account ID, etc. Interest Calculation Interest indicator, interest calculation frequency, date of last interest run, etc Information Information Created on, created by, chart of accounts, country key, FM area G/L account texts Account assignment, accounting note, additional info The first preparations is to review the chart of accounts to determine if they are comprehensive enough, you should ask questions like  is the current length of the G/L account number ideal  what kind of name do you want alphanumeric or numeric  do you need to rationalize the current number of G/L accounts (remove redundancy)  do you need more than one retained earnings account You also need to look at the grouping of the G/L accounts, after your analysis you may be able to use the SAP supplied chart of accounts. The account group summarizes characteristics (for screen layout and number intervals) that control the creation of master records, you can determine which field must or can be filled when creating a master records decides pre- defining a number interval for which the numbers for the master records should be chosen. By assigning a number range to an account you can ensure that the accounts of the same type are within the same number range. You can either use the SAP supplied accounts groups or define you own using transaction code OBD4, the screenshot below shows some of the SAP supplied accounting groups
  3. 3. The retained earnings account is a special type of ledger account that allows you to keep track of the profit and loss transferred year on year. All balance sheets are carried forward every year whereas the profit and loss accounts are not. Profits and losses are transferred to retained earnings accounts automatically at the end of the fiscal year by using the carry-forward program, enable to do this you need to enter the number of the retained earnings account in the system. Every profit and loss account is assigned to a retained earnings account via a key, which is entered in the profit and loss statement account type field found in the chart of accounts area of each profit and loss account. You can also see the closing operations section regarding the carry balance forward. Lets define a retained earnings account, you can denote one or more G/L accounts to be a retained earnings account by specifying the P&L account type in the chart of accounts area, if there is only one retained earnings account the system will automatically use that account once you have defined it. If there is more than one retained earnings account, select the retained earnings account for each of the P&L statement accounts when you create the G/L account master records. We will now configure the Data disk Mobile retained earnings account, use transaction code OB53, use the new entries button and enter "X" for the P&L statement acct type and 900000 for the account You can also create sample accounts which you can use to create G/L account master records, a sample account is a master record that is used to create G/L account records in the company code, together with the data transfer rules it determines what value will be transferred and whether you can overwrite the transferred values when creating a new master record. It is optional to have sample accounts but can save you time when creating similar master data records across company codes but want to control the way they are created in each company code. You cannot post to a sample account and you must specify a chart of accounts when you create it. You need to complete the following when using sample accounts  Maintain list of rule types  Define data transfer rules  Assign company code to rule type  Create sample accounts First lets create the rule type, for this we will use transaction code OB15, enter the chart of accounts and create a rule type using a four-character ID as in the below screenshot Now we can define the company code specific data transfer rules to determine whether values that are transferred from a sample account can be overwritten, we will use transaction code FSK2, on the initial screen select the above rule type we created
  4. 4. Then file in the next screen as below  Transfer value - use this if you want the value to be transferred and then overwritten later, you must then select one of the two checkboxes below  Cannot be changed if set - all non-blank field values will be transferred to the G/L account master exactly as in the sample account and you will not be able to modify or change the values later, if the field is left blank then you can still enter a value after the G/L account master record has been created  Cannot be changed if initial - when the field content is blank (initial) no one will be able to enter a new value in that field once the G/L account master record is created from the sample account. However you will be able to change the field content after transfer, if the value is not initial in the sample account Now we need to assign the company codes to the defined rule type, you can assign more than one company code to the same rule type as the data transfer rule is per company code, we will transaction code OB67, you can see in the below screenshot that I have assigned all the company code to the rule type DD01 Lastly we now can create the sample account that will be used when creating similar accounts, for this we will use transaction code FSM1, on the initial screen enter a sample account name (try not to use only numbers, unless you have a good memory) On the next screen you can field values you wish to transfer to the new G/L account master records that will be created from this sample account, I will leave you to populate this screen which depends on the G/L accounts you will create, remember try to fill in as much as you can to save you time when creating a new G/L account
  5. 5. G/L Account Creation and Processing You have two ways in which to create a G/L account  By creating the accounts in the chart of accounts area first, then creating them in the company code area  By creating the record both in the chart of accounts and the company code area in one step You also have the following options for the above methods  create G/L accounts accounts with reference - here you create your G/L accounts by copying existing accounts from a reference company code and editing them later to meet your requirements, you perform collective or single changes, use this method only when you find that a chart of accounts in the standard SAP system meets most of your requirements  transfer G/L accounts from an external system - use this when you have a non-SAP system and want to copy the G/L accounts, you can then collectivity or singularly change the accounts, you will use the data transfer workbench (transaction code SXDA) for transferring the data from the legacy system.  copy G/L accounts (alternative methods) - use this if you find that the G/L accounts in the standard system will meet your requirements exactly Lets have a look at creating accounts using the first option, we will use transaction code OB_GLACC01, first we will create a new entry for company code DD11, I have chosen company code 0006 as my reference but you can select a more appropriate one if you wish, then select the choose detail (spyglass icon near the bottom) At first this screen may appear blank, if it does then select account from reference button and enter the account that you want to create, here I selected them all The screen then populates with the account that you wish to copy, if you notice the account already created column you can see that a number of accounts have already been created, you can also see if the account determination is checked for the accounts, you can also create a G/L master record for an account already displayed but reference it to a different account using the reference G/L account column, you can add/change short text or long text, you can even
  6. 6. delete accounts that you don't need, once you are happy with everything then select the G/L accounts button which will create the accounts, you will be warned if there are any problems. You can make multiple changes to data in the chart of accounts area, company code segment data or the names of several G/L accounts at the same time, for this we will use transaction code OB_GLACC11, you will get a warning dialog screen appear this is to make sure you now that bad things can happen in here, on the next we will select the chart of accounts CAUS We will display all records The main mass maintenance screen is split into two sections, the top section (known as the header) with two rows will be used to apply the changes that you need, this can be to one or more accounts, the bottom screen are the G/L accounts, if highlighted in orange then this means they are selected for change In this screenshot you can see that I have deselected all the G/L accounts and choose just two to update, I have select functional area DD03 for these particular accounts, once you are ready then select the carry out a mass change icon
  7. 7. After the change you should see that both accounts now have DD03 as there functional area, then save your changes When you save you will get a report on what happened, the below screenshot displays the two changes Now lets confirm that the G/L accounts were updated, we will use transaction code FSP0, you can see that G/L account functional area has been updated to use the DD03 functional area On the initial screen you can also add additional fields to search for specific G/L accounts, also remember this is a powerful and damaging utility so be careful There is a similar utility for changing company code data, use transaction code OB_GLACC12, it does have additional options like posting without tax allowed, line item display, etc. I will leave you to have a play around with this utility You can also collectivity change the G/L account names (both short and long text), again this is similar to the above, you can use transaction code OB_GLACC13, again I will leave this for you to play around
  8. 8. Now we will look at one of the alternative methods by copying a company code accounts, use this when you have a chart of accounts that meet 100% of your requirements, we will copy company code DD11 to all of the other company codes (DD12, DD13, DD21 and DD22). We will use transaction code OBY2, the screen is pretty simple, on the initial screen select the company that you want to copy from and the company code that you to copy to, I generally run a test run first If you run a test run you will see all the G/L accounts that will be copied When you do run for real you will see a results screen, check for any errors or problems. You can then use transaction code FSS0 to check and see if the account what created in the company code Now that all the G/L accounts have been created for the company codes, we have to change the operative chart of accounts for the japanese and British company codes, which will meet our country-specific reporting requirements, you can of course use a single operative chart of accounts across countries which can help you easily carry out cross- country code controlling, but it may be a problem for accounting staff to find it difficult to adjust to the operative chart of accounts. So how do you make the connection between the operative and country chart of accounts, you can map both the charts using the alternative account number field in the G/L master record but you first would need to ensure
  9. 9. that you have created the necessary G/L master accounts in the chart of accounts area of the country chart of accounts, which is what we will do next. I will walk through creating the G/L accounts for the DD13 the japanese company, we first use transaction code OBY6 to remove the country chart of accounts Next we will delete the chart of accounts and recreate them with the G/L account master records, we will use transaction OBY8, A check is made (middle screenshot) to confirm that the chart of accounts can be deleted, if there are any problem fix these first and then continue to delete, you will receive a confirmation dialog box when the chart of accounts has successfully been deleted (screenshot on the right) Now we use transaction code OBY7 to recreate the chart of accounts, make sure that all the areas are selected including the finan.stmt.version as the below screenshot Then fill in the details as per below, the financial statement version basically specifies the key which identifies the balance sheet and profit and loss statement version, I have already covered chart of accounts you can use transaction OB58 to check the financial statement version. A summary screen will appear (left screenshot) , to actually copy the chart of accounts select the copy icon (two sheets of paper), once copied you will receive a summary results screen (right screenshot)
  10. 10. Once you have finished you can then assign the chart of accounts to the company code DD13 using transaction OBY6 as above. The last thing to do is to connect the operative and country chart of accounts for company code DD13 and DD22, we will use transaction code OB_GLACC12 which you have used before, on the resulting screen enter the company code, now we need to make the alternative account no column available, select view and then choose fields select alternative account no and add it to the list, the column should then appear As you can see we have the additional alternative account no column next we select the rows that we want to update and as before we add the new entry in the header row and perform a mass update. Now on my system the alternative account no is hidden in the SAP system so i cannot update, so you may have to update the field status to "Optional entry" in all the affected accounts before you proceed further with the mass updates, this may not be the same as your system. Business Transactions There a number of settings for business transactions in G/L accounting which basically define rules (in case of clearing), posting keys, accounts, line layouts, etc. At times you may need to adjust or reverse a posting for reasons such as incorrect postings (in the current period or closed period) or failure to collect a bill of exchange, you can customize how adjustment postings or reversal entries are carried out in the system by regular reversal or negative postings, you can also decide how to create a negative posting for a pre-defined reversal reason in the system. A negative posting (also known as true reversal) enables you to restore the account balance to its original level by correcting an incorrect posting without inflating the trial balance on either side of the account, we discussed the negative posting permitted option when we setup the company code see financial global settings and company code parameters for more details, so if you have not set this up its best to do so now. You can also use transaction code S_ALR_87004651 to check or change these settings as per the below screenshot
  11. 11. You can also define reasons for reversals, you can also can control whether an alternative posting date will be allowed during the reversal or a reversal document will comprise negative postings, the system will display the reversal reason in the reversed document. We will use transaction code S_ALR_87004660, create the below  neg postng - allow negative postings  alt.pos.dt - allow alternative posting date Bank Account Interest Calculation This is also known as the balance interest calculation, it enables you to calculate the interest on the balance of the G/L accounts that are managed on an open-item basis, besides verifying the interest you can also use this to calculate interest on the staff loan accounts managed in the accounts receivable and accounts payable components. SAP controls the interest calculation through the specifications in the G/L account master, interest indicator and interest calculation run, for the interest calculation run you will maintain selection criteria to limit the accounts that will be included in an interest calculation run. The calculation rules, rate of interest, etc are configured in the interest indicator. You can see these details from the G/L account master in the interest calculation information block as per the below screenshot  interest indicator - also known as the interest calculation indictor or interest calculation type and contains the specifications for interest calculation  interest calculation frequency - represents how often the interest calculation program is to be run, this has a higher priority than the interest indicator  key date of last int.calc - used by the system to determine the interest calculation period for an account, this represents the upper limit of the interest calculation period. It is entered in the system when you run the interest calculation program in the background  date of last int.calc run - representing the CPU date of the last balance interest calculation run. First we will start at looking at the interest calculation types (or interest indicators), you need to define the following  A calendar type that is used for defining the number of days due for interest  Interest rates along with the conditions  Forms for the lists
  12. 12. You can also specify if the interest calculation program should use an interest calculation numerator for the calculation (normally the program calculates the interest directly without applying any numerator), when this is complete you can enter it in the indicator of the G/L account as seen in the above screenshot We will use transaction code OB46, select the new entries icon and enter the details as in the below screenshot for L1  int ID - a unique identifier for the interest indicator  name - self explaining  acct - select this checkbox if you want the G/L account number to be used as an external interest indicator in the interest terms.  int calc type - determines whether the interest is to be calculated on arrears (per item) or balance (interest scale), per item is type "P" and balance is "S" For each interest indicator you need to make interest calculation specification such as the period determination, the interest determination, the interest processing, the output controls and the payment terms, lets configure settings for the interest indicator "L1", we will use transaction code OBAA,  interest calc freq - the system adds the months here to the last interest calculation date and arrives at the interest calculation period for automatic interest calculation, for example if you enter 06 with he last interest calculation date of 12/31 the system will calculate the upper limit as 6/30 for the next interest calculation, you will also come across another upper limit that is entered in the interest run (report parameter), if the upper limit for an account exceeds the calculation period as determined in the interest run than that account will not be included in the interest calculation for the current run  settlement day - the system makes use of this field (any value between 01 and 31) together with the information in the interest calc freq and key date of last int calc fields to determine the upper limit of the interest calculation period, for example if the key date of the last interest calculation is 12/31 and the interest calculation frequency is 06, then the system calculates the upper limit of the interest calculation period as 12 (month of last interest calculation) + 06 = 06. The system automatically registers a change to the subsequent year when the month of the key date (12) plus interest calculation frequency (06) exceeds 12; in this case 18. Also if the settlement date is 31 then the upper limit is arrived at 06/30 since all dates like 06/31 will be set to the end date of that month.  calendar type - this is used to determine the number of days per month and year that will be used as the basis for calculating interest on financial investments, the number of days in the year is used as the divisor for the interest rate to calculate the daily interest rate from the annual interest rate. One of the options is the bank calendar (B) which considers a year as 360 days, with a month consisting of 30 days. The other options are French calendar (F), Gregorian calendar (G) and Japanese calendar (J)  month-end indicator - in conjunction with the calendar type B or J, this indicator is used to decide how for example February 28 needs to be treated, if you select this checkbox and have the calendar type B, then the month end will be considered as 30 days not as 28. Accordingly the system will arrive at the number of days for example between January 31 and February 28 as 30, do not select the checkbox as we using the Gregorian calendar.  int cal numerators - the interest will be calculated using the interest calculation numerator  round ic numerators - the system will round off the numerators  interest rates depend on total amount - select this if you want the graduated interest rates (amount-dependant) in the time-dependant terms to refer to the total amount, leave unselected when the interest is applied as per the graduated scale or slab rate  function module - if the interest rate determination is to be carried out through a function module rather than through the standard method (via transaction and business types), you can use transaction code OB85 to see the SAP standard function modules, if you want to add a new function module use transaction code SE37 (function builder).  amount limit - if the interest is calculated per account and currency is larger than the minimum amount entered here, an interest settlement is created, this helps avoid interest settlements being created for interests amounts smaller then delivery charges, for example.  no interest payments - this is to indicate that there will be no interest settlement during the interest payment  number range - use this to number the interest forms so that when you post an interest document the system stores the form number in the reference field. You can use transaction FBN1 for the number range or the interest calculation global settings in the business transactions in the accounts receivable and accounts payable IMG
  13. 13.  balance plus int - this parameter makes the system print the total outstanding amount, including the balance amount plus the interest calculated  terms of payment - determines the terms of payment Lets see an example where the interest is calculated on the total and on the graduated amount for an interest calculation period of one year where the balance is 12,000 Amount Slab Graduated interest scale interest amount considering only total outstanding interest using the graduated interest scale From 0 3% From 5,000 5% 500 (5% on 10,000) From 10,000 10% 1,200 (10% on the entire 12,000) 200 (10% on the excess amount of 10,000 which is 2,000) Total 1,200 700 Now we will define the reference interest rates, we will use transaction OBAC, select the new entries icon and fill in the details below, you can use the copy as icon to save time Now we define the time-dependant terms, with this task you will determine how the interest rate is to be determined for each of the indicators  whether it is to be calculated as debit or credit interest  which interest rate is to be used, reference interest rate, the interest rate specified in the premium field or reference interest rate plus premium We will use transaction code OB81,  int calc indicator - self explaining  currency key - self explaining  eff from - effective date  sequential number - required only in the case of staggered time-dependent terms, this helps to graduate the interest rate from different amounts  term - there are four options two for credit and two for debit you can also select either arrears interest or balance interest  ref interest rate - select the reference interest identifier we created above  premium - this represents premium or discount, if you have not put any value in ref.interest rate but entered a positive rate in this field then the system uses this positive value as the interest rate for the calculation, if you maintain both fields then the effective rate will be the sum of these two, you can even enter a negative value which implies a discount.  amount from - valid for only balance interest calculation this enables staggered interest rate calculation
  14. 14. When you have created the three time-dependent terms you should end up with something like below Now we will define the actual rates that will be used for the calculation, we will use transaction OB83, select the new entries icon and fill in the details below Now we need to prepare G/L account balance interest calculation, the system determines the G/L accounts for posting the interest calculated using the posting interface in application 0004 (account interest scale), the following steps will prepare these accounts  Account determination keys and posting specifications - create at least one set of posting details for the interest earned postings and interest paid postings  G/L accounts - which need to be assigned in full to the account symbols for the respective interest earned posting or interest paid posting  Document type - because the standard system uses the document type SA, make sure that you have already defined this document type while configuring the document types. We will use the SAP standard posting interface in application 0004 as per the screenshot below, on the screen you will see relevant account symbols (like 0001 for interest received, 0002 for interest paid, 1000 for G/L account for posting interest earned, 2000 for G/L account for posting interest paid) and posting keys that have already been configured for each of the business transactions (for instance 1000 representing interest received posting and 2000 representing interest paid posting). A + in the fields like company code, interest indicator and business area indicate that it is a valid across all company codes and business area's or interest indicators. Selecting the comp checkbox will automatically compress the line items before posting. You can also enter a special G/L indicator in the field adjacent to the posting keys, this will determine the reconciliation (G/L) account to be selected for posting for customer or vendor line items (screenshot in the middle). The screenshot on the right is the account symbols. We will use transaction OBV2 if you select the accounts button you can maintain the required G/L accounts for the required account symbols for the chart of accounts CAUS, again a + in a field means that the specifications will be valid for all the currencies, in the case of account symbol 1000 and 2000 you need to make generic specification (by entering "++++++++") in the G/L acct field as this will make it valid for the relevant G/L accounts.
  15. 15. You will come across the need for cross-company code postings in two situations  When your company code acts as the centralized purchasing or paying entity on behalf of several other company codes  When one company code sells products manufactured by the other company You can also use this to minimize the number of transactions for example if a customer (DD12) has paid into the wrong company code (DD11) of your group, in this case you just debit the bank account (DD11) and credit the customer account (DD12) and the system automatically creates the clearing entries. The posting keys have already been defined for cross-company transactions, so we need only to define the accounts for the clearing entries the system will make when posting cross-company code transactions. These entries represent receivables and payables between company codes resulting from central purchasing or payment, you will also specify which company code are to be paid together, if more than two company codes are involved, you need to define the settings for each pair of company codes. We will use transaction code OBYA, on the initial screen we select the company codes that are involved On the maintain FI configuration screen we enter the settings that relate to transactions posted in the company code DD11 but cleared against company code D12 in the company code 1 section, in the company code 2 section we can see the reserve in regard to the posted in and cleared against company codes. The account credit or account debit account can be a G/L account or a customer or vendor account. You can use the list icon to see all the configured automatic posting clearing accounts, you can use the page up and page down buttons to see the entire list. Document Splitting We have already spoken about document splitting in the new G/L new features section, which we mentioned that splitting up the line items in a document for a given dimension (like profit center or segment and business area) with the automatic generation of additional clearing lines items. Document splitting helps you to draw dimension specific balance sheets. The entire process of document splitting is made up of the following 1. Passive split (passive document split) - a non-customer specific generic step in which during clearing (for example during a payment) the account assignments are transferred to the clearing items. This ensures that the account is balanced and also balances the additional dimensions such as business area and segment. 2. Active split (rule-based split) - the system processes a document split based on the splitting rules (standard or customer defined) that are configured 3. Creating clearing lines/zero balance for each financial statement characteristic (and document) - controlled through the zero balance indicator, the system creates new clearing lines to archive the document split.
  16. 16. Document splitting always happens through steps 1 to 3, between steps 2 and 3 document splitting is supported by inheritance and default account assignment, you can use the document splitting wizard (transaction code FAGL_WZ_SPLIT_CONF, screenshot below) or you can configure each step individually. Lets walk through each step first we will start with classifying the G/L accounts for document splitting, the system analyzes a business transaction during transaction entry to determine whether the line items contained in that transaction are to be split or not based upon a classification in the system, this is done by assigning the line item to an item category, which is determined by the account number. SAP comes delivered with seven item categories which are simply the semantic descriptions for the document split, while assigning the accounts/or account intervals to an item category assign only the accounts relating to revenue, expense, bank or cash and balance sheet.  customer  vendor  asset  cash discount offsetting  material  expense  revenue To configure the G/L accounts for document splitting we use transaction code S_ALR_87008943, on the initial screen we select the CAUS chart of accounts, you are then taken to the maintain screen, here you can see that a number of accounts that have already been configured. Now we configure the document types by associating the with the business transaction and a variant, for the system to use a document splitting rule the document type relevant to a specific business transaction has to meet certain requirements which are in turn related to the item categories. These details are defined in a business transaction variant that will control the document splitting. There are already a number of these variant configured in the system already, we will use transaction code S_ALR_87008944, you can see in the below screenshot that a number of document types are have already been setup.
  17. 17. There are a number of business transactions already configured as per the left screenshot, you can see the business variant on the right screenshot Next we define the zero-balance clearing account, the system will check whether the balance of an account assignment object is zero after document splitting, if not then the system generates additional clearing items, which need to be posted to a G/L account that can be defined using this customizing activity for the relevant chart of accounts, we will use transaction GSP_KD, if you highlight account key 000 and select the accounts on the left hand side you will see that G/L account 194500 will be used for zero-balance clearing. Now we can customize the crucial task for document splitting, defining document-splitting characteristics, this is where you make the specifications whether you want any of the following  A zero balance setting for a characteristic  The ability to use a partner field to document a sender or receiver relationship in the clearing lines generated additionally in the document  A characteristic to be a mandatory field, so that the system does not accept the postings when this field is not filled with a volume from the document splitting. We will use IMG and the below path On the resulting screen you will see the system proposed the logical splitting characteristics based on the assigned scenarios  zero balance - select this to activate zero-balance for this characteristic, the system checks whether the balance for the characteristic is equal to zero during posting, otherwise the system generates additional clearing lines on clearing accounts to achieve the zero balance.  partner field - when specified a sender or receiver relationship is then documented in the new clearing lines
  18. 18.  mandatory field - this has two purposes firstly it is an extension of the field status in which the characteristics cant be entered during document entry or for the accounts that cannot be controlled through field status, secondly it is used to check whether a business-process equivalent business transaction variant was selected to determine if a splitting rule can be found and applied. Select this only for fields for which your require a complete balance statement and for which you cannot accept any inaccuracies through unassigned postings. When this indicator is set all postings where no values are set for the specified fields after document splitting are rejected with error messages. To define the document splitting characteristics for controlling such as order, cost center, cost object, network and profitability segment number the system can further sub-divide the line items during some of the G/L accounting processes. The system can subdivide the line items during clearing of customer or vendor line items into cash discounts paid or cash discount received for example. The selected characteristics are only transferred to the specified line items when posting account has also been setup as a cost element. If so the characteristics values will still be transferred even if the field status of a particular G/L account has been set as hidden. If you wish to define some characteristics for controlling you can use the IMG Next we have a look at the defining of post-capitalization of cash discount to assets, again the SAP system comes with a cash discount relating to payment of asset-related invoice that are capitalized to the respective assets. If you don't want this then you need to delete the asset entry using the below from the IMG Lastly we are ready to activate the document splitting method, again we use the IMG When activated document splitting is valid for the entire client and you can exclude individual company codes, you will normally use the standard splitting method 0000000012 that is delivered with the system (screenshot on the left). If you double-click the deactivation per company code folder on the left you get the screenshot on the right,
  19. 19. Manual Accrual Accruals are expenses (insurance premium, outgoing rentals, subscriptions, etc) or revenues (interest income, rentals, etc) that have already occurred but which you have'nt received or generated invoices or accounting documents. The manual accruals component of SAP enables you to calculate and post such accruals in G/L accounting automatically and also supports simultaneous use of parallel valuation methods for different accounting principles, through the accrual engine, it calculates the amounts to be accrued based on one-time data entry. In each period you can start an accrual run, simulate and post the accruals for various business transactions. When you maintain the data for accruals the master data that you specify remains in the manual accruals component. However the posting data required to calculate and post the accruals is transferred to the accrual engine which calculates and post the accruals, if you execute an accrual run to post the accruals, accrual engine documents are created and then transferred to FI automatically, the corresponding accounting documents are then created in FI. The entire process can been seen in the diagram below Defined per company code the accrual object contains all data that the system requires to calculate and post accruals for a business transaction. You can group accruals into accrual object categories to which you can attach the processing parameters including standard and user-defined fields. The accrual type determines how the accruals are calculated and posted in the accrual process which makes the accrual postings for posting periods available in a periodic accrual run. An account determination either directly or through account symbols designates the G/L account for the posting the accruals. The advantage of manual accruals over similar functionality through recurring entries in G/L accounting is that offers greater flexibility the calculated accrual amounts can vary along with the ability to depict complex business rules and call for one-time data entry. We will need to complete the follow tasks for manual accruals  Assign the company codes for which you want the manual accruals  Define and assign accounting principles  Define the accrual object categories  Define the number range intervals for accrual objects  Define accrual types  Define accrual methods  Define posting control/account determination let us first assign the company codes in which you want to calculate and post to the accruals to the manual accruals component, we will use the IMG
  20. 20. Select the new entries and create the below, if you select the productive status then the accrual engine will make a check when carrying forward the balance, a balance can only be carried forward to the fiscal year that immediately follows the current fiscal year. Next we assign the accounting principle to the company code, again we use the IMG Select the new entries button and create the below for the company codes, you might notice that some company codes have more than one accounting principle assigned, this will meet valuation standards for the different accounting principles, in our case since the accruals will be identical for IAS and USGAAP we will assign the US company codes to the accounting principle 90, however we need have separate entries for the UK and Japanese companies to reflect the international accounting principles. Now we will define the accrual object categories, an accrual object contains all the data for an individual business transaction and helps calculate and post the various accruals. The data is similar to a contract or contract item and has the following characteristics 1. The total amount to be accrued 2. Total quantity to be accrued 3. Life over which the amount is to be accrued The following posting data is saved for each accrual object  Line Items (the accrual engine documents are saved as posted line items)  Totals values (the accrual engine documents are summarized at fiscal year level as total values)  Header data (to execute the posting for an accrual object, the object must have a specific status, which is stored in the basic data and in the posting data)
  21. 21. First we will create the accrual object categories, we will use the IMG, I have highlighted a number of the areas we will configure You can create an accrual object using the SAP easy access menu which is accessed via transaction code ACACTREE01 Accrual object categories can be defined by selecting define accrual object categories then using the new entries button create a number of new accrual object categories as per below Now we will define the number ranges for the accrual object for each company The accrual type controls calculation and posting of accruals according to different business views and defines how the accruals are calculated and posted. There are two accrual types  Simple accrual type - you define the view under which the accruals are made and which postings are performed  Derived accrual type - this is derived from other accruals, for example as the total or difference from other accrual types. You can assign all defined postings to an accrual type or to individual postings  Open posting - the entire amount to be accrued is posted as a balance posting to an accrual account
  22. 22.  Periodic posting - the total amount is split over the individual periods according to the accrual method used, when you perform a accrual run in a period the accrual amount for that period is posted to a profit and loss account  Closing posting - only occurs when you deactivate an accrual object prematurely, the amount has not been accrued by the time of the premature deactivation is posted as the deactivation amount. To define the accrual types we will use define accrual types from the above IMG screenshot  Accrl type - self explaining  AccrPs - all (periodic plus opening), only periodic (no opening posting), opening posting only (one-time posting), none (no posting but required for reporting))  opening entry, period psting, closing entry - used to manage the delta entries in accruals, the alternate way without using delta entries is to reverse the previous or the original accrual run before the current one.  derived - if the accrual type is derived You will need to open the fiscal year to enable accrual postings and to make changes to the accrual objects, you cannot make any changes to accruals objects for the last closed fiscal year or for future years. Select the open fiscal year for accrual posting from the IMG screenshot above, if you are in the fiscal year 2013 then completed fiscal year should be 2012, when you save, the current fiscal should get populated, unless you have not closed that fiscal year it will remain blank The accrual methods specifies the amounts that are to be accrued for example by straight-line or declining balance accrual, you must assign a functional module to each accrual method, again we will use the IMG however its in a slight different place as per the below screenshot We will create two new methods as per the below screenshot, one for day specific and one for year specific Now we will link the accounting principle, account type with the accrual methods, using the define standard setting for accrual calculation in the above IMG screenshot, we create for all the combinations of accounting principles and accrual types, do not select the zero V as we want accrual items with a total amount to be accrued equaling zero also be created in the accrual engine.
  23. 23. Now we define the posting control which is basically how you want the accrual postings to be made for each of your company codes/accounting principles combinations, you have to decide between two options, the frequency of the periodic accrual postings (per month, per posting period), etc) and the summarization for transfer to FI. The summarization is how you want to summarize data when transferring accrual postings to FI. if you do not want summarization a document line will be created in FI for each accrual item or type. SAP provides you with the following options as standard setting for postings control  Frequency of the periodic accrual posting: Per posting period  Summarization for transfer to accounting: No summarization active We will use the IMG as per the below screenshot Note that you have several options on this screen  posting frequency - you have per posting period, daily, monthly, quarterly, every six months and annually  summarization - not active means that a document line is created in the accounting document for each accrual item and accrual type in the accrual engine, object level means as few document lines possible are generated in FI accounting for each accrual object with the summarization carried out over the accrual item and accrual type, maximum means maximum amount of accrual engine data is summarized for accounting document when documents are created for I  control reversal FI - this indicator controls which posting logic is applied for the transfer of the reversal accrual engine document to FI, inverse posting or negative posting, in both options the system generates a posting with an inverse +/- sign during reversal. In inverse posting the Dr/Cr sign in FI line item and in FI transaction figures are the opposite of the signs in the document to be reversed, in negative posting the Dr/Cr signs in the FI line item are the opposite of the signs in the document to be reversed but it does not apply to the Dr/Cr signs in the FI transaction figures. Once you have finished defining the posting control you should end up with something like the screenshot below, remember you have to define a posting control for each company code and each accrual type, accrual principle.
  24. 24. The last piece to configure is to define the account determination, you can opt for a simple account determination where basically you map the G/L accounts directly to a set of rules or you can use extended account determination where you use account symbols so that you can summarize accounts from various charts of accounts, thereby making it possible to post to accounts in various company codes during a accrual run. We will setup only a simple determination we need to define a set of rules for defining account determination these rules are made up of individual rules  You can define rules that build on one another by creating them in the order in which you want the system to work through them  You can define parallel rules, here you must remove the flag post error message if no value found from the properties tab when you define the individual rules Account determination is called up when the accrual engine documents are passed on to FI, which means that account determination occurs automatically with every posting (opening entry, periodic accrual posting or closing entry), you must define the following elements  Document type  Start account (such as accrual account)  Target account (such as P&L account) With a set of rules you define the dependencies between the source fields and the target fields from which the document type and the accounts are to be derived. We will use the IMG On the initial screen, in the screenshot below you can see that multiple steps have already been created Lets have a look at steps 1 and 3, you can see the transactions in accrual engine which maps the transactions I = Inception, P = Periodic Recognition, etc) with accrual types and assign a document type for each combination, by default the document type is AB If you look at step 2 and 4 these map the accrual engine transaction accrual type combination to start/target accounts to complete the account determination
  25. 25. When you double-click on a step you will see the definition, condition and attributes defined on the subsequent screen under the various tabs, below is step 4, in this screen you can configure the following elements  Select the desired source and target fields (definition tab)  You can enter a condition for linking source and target fields (condition tab)  you can make extra settings for your rule in the attributes tab for example you can make settings to allow maintenance of time-dependent entries and define whether an error message should be issued when no value is found (attributes tab) Steps 5 and 6 are regarding the insurance INSURA accrual type. Open Item Clearing Open items are unfinished transactions (such as a invoice that has not been paid) that can cleared only when you post an equal offsetting amount to that account, you can clear open items either fully or partially. For partial clearing the system stores the open residual amount for the item and the cleared amount. In the open item you enter a due date for payment, due date for cash discount or a deferral date, if you enter a deferral date the open item is not processed again by the dunning program or payment management program until this date has elapsed. An open item can be cleared in a currency other than the currency in which the open item was posted, if you clear an item in an alternative currency the SAP system performs the necessary translations between the two currencies using the average rate using two steps  Translation of document currency to local currency  Translation of local currency to clearing currency Also in the background if there are any exchange rate differences that lie within predefined tolerance limits, cash discounts and taxes and posts them to the G/L accounts defined in customizing, in automatic clearing the payment amount is assigned to the open items. During clearing the system enters a clearing document number and the clearing date in these items. In a single clearing transaction you can process several accounts of different account types (G/L, vendor, customer) and accounts from different company codes. The rules for clearing an open item are  You can only clear open items that are posted to accounts that are managed on an open-item basis  The accounts that can be cleared automatically must be defined in FI customizing  The items to be cleared cannot trigger another posting for example cash discounts or exchange rate differences  The items cannot be special G/L transactions there are special functions to clear these items.
  26. 26. You normally set open-item management for the following G/L accounts  check clearing accounts (bank clearing accounts)  goods receipt and invoice receipt  payroll clearing accounts There are a number of functions with which you can clear open items  Regular posting - the regular account maintenance allows you to clear open items (full or partially) if the total amount of selected line items is zero  Payment program - all items paid by the payment program in a payment run are cleared  Posting a reversal - when you reverse a clearing document all items that were cleared by the document become open items again  Posting a return - by posting a return all items that were cleared by the payment document are made open again  Resetting clearing - if open items were cleared accidentally with a payment you can reset clearing Several posting keys are defined for each of the clearing transactions as you can see in the below screenshot (left hand side), you can see the posting keys on the right hand side of GUTSCHRI (credit memo), try and use the SAP standard supplied if you need to change then copy and make necessary changes. You can use transaction code OBXH to view or create you own posting keys for clearing Next up we will define accounts that will be used to post any exchange rate differences realized (gain or loss) during clearing an open item. You therefore need to define gain and loss accounts to take care of this, if order to define the accounts you have to specify the reconciliation accounts for customers and vendors in the G/L account field, for example to clear a foreign currency open item on the debit side enter a receivable account in the G/L account field. Enter the numbers of the bank sub-accounts in the G/L account field for posting exchange rate differences when clearing bank sub-accounts. We will transaction code OB09 to create our G/L accounts for exchange rate differences, select CAUS as the chart of accounts, I have select the trade payables G/L account 160000, you can see that the exchange rate differences loss and gain G/L accounts are 23000 and 28000, and you can also see the valuation loss, gain and adjustment G/L accounts.  G/L account - self explaining  Currency and Currency type - self explaining  Exchange rate difference realized - the G/L accounts for loss and gain  Valuation - the system will use these accounts when valuating the first valuation area (local valuation), the bal.sheet.adj.1 represents the local account for adjusting the receivables and payables during foreign currency valuation of open items.
  27. 27. You will need to also copy the above for the following G/L accounts  160001 - trade payables domestic  160010 - trade payables domestic one-time suppliers  161000 - trade payables foreign  161010 - trade payables foreign one-time vendors The clearing rules now need to be defined, these are valid for all clients and help separate and assign clearing entries to accounts, the rules also help in transferring these entries to the appropriate account assignment in the cleared items. For each rule select the appropriate fields as criteria and then assign the rules at the client and account type level so as to define differing classifications. We will use transaction code OBIA, first create a new clearing rule called PR using the new entries button, then highlight the PR and then double-click the clearing rule fields folder and create a new entry as per the below right hand screenshot Now we assign the clearing rule to an account type, we use transaction code OBIB, create a new entry as per the below screenshot Now we prepare for automatic clearing, the clearing program clears open items by grouping them together if their total balance equals zero, (in local and foreign currency), to enable automatic grouping you need to enter certain criteria, SAP comes with a number of standard criteria's, we will use transaction code OB74, create the below if not already created, we leave the chart of accounts blank so that the settings are valid for all charts. Now we must configure the system to manage the clearing differences that might occur during the clearing operation, for this we use tolerance groups for the G/L accounts, we already touched on employees tolerance groups in the document section, you can have two tolerance groups set up for G/L accounts  A default (null) group with a maximum restrictions as tolerance  A relatively liberal group allowing for larger tolerances We will use transaction code OBA0, for each company code we will need to define a null group and a tolerance group, in the below screenshot I am configuring company code DD11 tolerance group, configuring the null group is the same but leave the tolerance group blank and make any changes to the values in the tolerance for groups of G/L accounts in local currency Hopefully you will end up with something like below, now with both the employees and G/L tolerances configured the lower of the two limits will apply when a transaction is processed
  28. 28. Now lets create the accounts for the clearing differences, you can create a single account to post both debits (expenses) and credits (revenue) or two separate accounts, one for debits the other for credits, we will use transaction code OBXZ, we will select the CAUS as the chart of accounts, first we will select the debit/credit selection box and then select the accounts button and fill in the account details, by default the system will use posting keys "40" (debit) and "50" (credit) Periodic Processing There are three types of periodic processing functions that you can perform at regular intervals in G/L accounting  Planning  Closing operations  Balance interest calculation (I have already covered this) We will start with planning, this functions offers you to enter and distribute plan data to create budgets, forecasts and other reports. With multiple plan data entry you can quickly and easily enter large amounts of plan data, you can  Enter the amounts as plan totals that are distributed (automatically or manually) to the planning period  Enter amounts as period amounts that are automatically totaled  Enter a combination of both totals and period amounts You can also transfer plan data from from SAP components likes CO-OM and CO-PA to complete planning in the G/L accounting. First we will define our plan posting periods, you can create permitted posting periods as variants and assign company codes to these variants, which we have already done in the financial global settings and company code parameters section, so all that's left to do is specify the posting periods that will be open for entering the plan data for each of these posting period variants, we will transaction S_ALR_87004668, and create new entries as per the below screenshot You can define one or more plan versions for each ledger and assign the desired fiscal year to a plan version. For each fiscal year you can post plan data to an unlimited number of versions, we will use transaction code GLPV, for each ledger we need to create a plan version, in this case 0L, D1, D2 for version 1
  29. 29. Now we need to assign the appropriate fiscal year and posting period to your plan versions and activate them, you can also lock a plan version if required, we will use the IMG, you can also activate the line items for planning as well Using the new entries we need to create the below The distribution key contains information on the rules for distribution and helps distribute your plan values or plan totals for the year to the individual plan periods, there are a number of SAP supplied distribution keys or you can define your own. Distribution keys are application independent which means that you can use distribution keys that you have created for planning in G/L accounting for CO. The user-defined keys can be referenced keys or independent keys  referenced keys - references to any of the standard keys in which you will not be able to change the posting period or relative factor of the distribution key  independent keys - where the key is created from new without referencing a standard key, you would do this if you want to factor-in variances such as seasonal fluctuation in the distribution We will use transaction code OBP1, create the DD13 distribution key The on the configuration screen we enter the relative factor for each period, here you can see that periods 11,12 and 1 have the largest factors
  30. 30. Now we define a planning layout for each variant of your planning, the planning layout is a form that determines which characteristics or key figures of a totals table (usually FAGLFLEXT) are used to perform planning. SAP again has supplied a number of planning layouts in the standard system, we will use transaction code FAGLPLI You will need one or more planning profiles assigned to the desired planning layouts, a planning profile is a hierarchically structured overview of plan tasks that determines which plan tasks are used in planning and in which order for each totals tables, SAP does supply a number of profiles. You can transfer plan data to the G/L from cost center accounting (CO-OM) and profitability analysis (CO-PA) components of SAP using transaction code OKEV and OKEQ Closing Operations Closing operations are processes and functions that you perform at the end of the fiscal year, these processes re-group and reclassify, valuate, allocation and carry-forward. I also have more details on this in my SAP user guide closing operations section balance carry-forward. When ever you receive goods that have not yet been invoiced or goods that have been invoiced and have not been delivered, the system posts those transactions to the goods receipt or invoice receipt clearing account (GR/IR account), you need to define the G/L account numbers of the adjustment and target accounts, the re-classify program analyses the GR/IR clearing account and makes adjustments by posting outstanding amounts to an adjustment account, this creates the offsetting entry to the account for goods delivered but not invoiced (adjustment account) or to the account for goods invoiced but not yet delivered (target account). We will use transaction code OBYP to create the adjustment and target accounts, you can see the two procedures in the below screenshot
  31. 31. The two procedures have the reconciliation account which the adjustment and target accounts are defined. There are a number of transaction codes that can be use to maintain settings and accounts transfer and sort receivables and payables. Transaction Code Description OBBU define sort method and adjustment accounts for regrouping receivable and payables OBBV define adjustment accounts for receivable and payables by maturity OBBW define adjustment accounts for changed reconciliation accounts OBBX define adjustments for investments For foreign currency valuation (as part of the closing operations) you should have already defined the valuation methods and valuation areas and assigned the valuation areas to accounting principles that in turn were already assigned to the corresponding ledger groups we will use transaction code OBA1, you can see in the below screenshot transactions KDB and KDW have already been defined, also we already defined KDF above in the open-item clearing section. You can allocate both plan and actual data using assignment or distribution through the allocation cycle function, you use the allocation rules to determine how amounts and quantities should be allocated from sender object to receiver object according to the set criteria, using default fields and other settings you make the allocation in G/L accounting for assessments and distributions for the segment and profit-center characteristics. We will use transaction code OBX2, you will need to define the transaction key SPL (use transaction FBKP) and defines its postings keys and create the G/L account The system uses different balance carry forward programs to carry forward the balances from the G/L account, customer accounts or vendor accounts of the completed previous fiscal year, all assignments are also carried forward as well. However no additional account assignments like profit center, functional area, etc will be carried forward for profit and loss accounts and the balance will be carried forward to the retained earnings account, you will use separate programs to carry forward the balances. For G/L accounts we will use the program SAPFGVTR (transaction code FAGLGVTR (see screenshot on the left)) to carry forward the balances retained in the retained earnings accounts, you need to select the balances in retained earnings acct the carried forward balance in the new fiscal will get updated automatically whenever you post to the previous fiscal years. For accounts receivable and payable you will use transaction F.07 (screenshot on the right - program SAPF010) to carry forward the balances to a new fiscal year.
  32. 32. Because the balances are carried forward in a summarized from to the retained earnings account use the transaction code GLCF to define the level of summarization. Tools The new G/L offers a number of new tools for creating reports, checking the settings and performing tests, as well as for summarizing, transferring and migrating data. These tools are used in areas such as planning, validations and substitutions, allocations, rollups, ledger and currency selection and reporting. Sets Sets are used to combine data and to define data hierarchies, so as to store specific values or ranges of values under a set name, you can have different set types  Basic  Data  Single-Dimension  Multi-Dimension Use Transaction code GS02 to create them Rollup determines how data is summarized in a rollup ledger, for certain high-level reports and valuations the data in a ledger may be too detailed but rollup functions can summarize the information contained in one or more original ledgers in a rollup ledger. You can define rollup ledgers, assign company codes to them, define the rollup and specify field moment. Statistical key figures (SKF) SKF can be used in reporting or allocation to represent additional characteristic information relating to organizational units other than monetary data, number of employees, square meters or feet, etc Validation/substitution We have already discussed validation and substitution. Reporting Financial statements provide an overview of a business or person's financial condition in both the short and long term, they contain financial infomration relevant for the business enterprise presented in a structure manner and in an easy to understand format. There are four basic types of financial statements Balance Sheet This is also known as the statement of financial position or condition, the balance sheet is a snapshot of the firm, it shows in summary what a firm owns (assets) what a firm owes (its liabilities) and the difference between the two (the firms equity) at a given point in time Income Statement Also known as profit and loss statement (P&L), the P&L reports on a company's income, expense and profits over a period of time. The P&L account provides information on the operations of the enterprise, including sales and various expenses incurred during the processing state. Statement of retained earnings This explains the changes in a company's retained earnings over a reporting period Statement of cash flows This reports on the company's cash flow activities, particularly its operating, investing and financial activities
  33. 33. There are a number of reports in the new G/L to analyze business transactions, the reports are available for ledgers so try and specify which ledger the report is to be displayed, many of the reports you can drill-down to obtain specific details. Financial statement/cash flow S_ALR_87012284 Financial Statement S_PLO_86000029 Financial Statement: Plan/Actual comparison S_ALR_87012271 Cash Flow (Direct Method) G/L account balances S_PLO_86000030 G/L account Balances (new) S_PLO_86000031 Transaction figures: Account Balance S_ALR_87012301 Total and Balances Line Item display S_ALR_87012332 G/L Account Statements S_ACO_52000887 Open Items: Receivables: Profit Center S_ACO_52000888 Open Items: Payables: Profit Center S_PCO_36000218 Open Items: Receivables: Segment S_PCO_36000219 Open Items: Receivables: Segment Documents S_ALR_87012287 Document Journal S_ALR_87012291 Line Item Journal S_ALR_87012344 Posting Totals Master Data S_ALR_87012333 G/L Accounts List S_ALR_87012308 Display changes to G/L Accounts You can also see all the reports from the easy access menu in each of the paths General Ledger, Account Payable, Accounts Receivable, in the below screenshot you can see the balance sheet reports for the General Ledger, there are many reports so I will leave you to investigate, however I hope to have a section in reporting in the future. For more information on G/L accounts from a users point of view see my other G/L accounting section. Lastly I just want to cover the financial statements which every organization needs to perform and the only way to do this in SAP is to customize your financial statement version. These are then used to prepare and structure balance sheets and P&L statements. This allows you to create one global design for all of your financial statements, however you can design multiple financial statement designs to fulfil local statutory reporting requirements. For example if you run your company in the US but have operations in India, you can create one global version and one separate version according to the Indian requirements. This allows the Indian subsidary to run both versions and ensure that they are in sync. We can use transaction code OB58, to create financial statement versions, SAP provides a few standard ones which you can copy and change, The initial screen you set a number of parameters all of which are self-explaining
  34. 34. If you select the fin.Stmt.version button you are taken to line items that make up the financial statement, when you drill- down you can see what G/L accounts make up the line items. Here you can see that I have drilled down into the cash line item, you can see the G/L accounts To add or remove a G/L account from a line item, highlight the line item then select edit -> assign accounts (or select F6), the accounts dialog box will appear, the C and D represent credit or debit items. The new financial statement version in SAP ERP supports 20 hierarchy levels (previously it was only 10) and 1000 sub items are available per item (previously only 99), you can also transport the financial statement version and have fixed items for financial statements notes. You can create financial statement version according to cost of sales accounting using a standard report OSAPBSPL- 01, the report organizes the profit and loss statement according to your functional areas. You have to select the fun.area perm checkbox in the financial statement configuration initial screen (see screenshot below). However you must consider the following when you are using financial areas for financial statement analysis  Balance-dependent display - you cannot display functional areas dependent on the balance that is you cannot assign functional areas to different items based on their balance  Debit/Credit shift - you cannot define items to which you have assigned functional areas as debit/credit shift items  Check for completeness - you cannot use the check for completeness for financial statement versions with functional areas
  35. 35. Declaration: This is related to my Practice in Demo System ERP6 EHP5 since after my SAP Certification. I have taken guidance from SAP Expert of UK who had given me full instructions on how to go about with certain configurations in Financials. I have successfully completed one Configuration Cycle.