This document discusses key aspects of financial accounting in SAP, including the enterprise structure, chart of accounts, general ledger, account groups, and currencies. It explains that the enterprise structure forms the basis for other finance modules and includes elements like the chart of accounts and company code configuration. The chart of accounts contains all GL accounts and associated attributes. Account groups help categorize accounts. Multiple currencies can be defined and each company code uses one as its local currency.

2. Group Members:
MahrukhUsmani
RubabFatimashahbaz
Faiza Irshad
Gohar
Iqbal

3. Financial Accounting Enterprise structure
Chart of Accounts
General Ledger
Accounts Groups
Currencies

4. The Financial Accounting (FI) Enterprise Structure is
the key building block to your entire organization.
Most other modules in the system build upon the FI
Organization Elements that you create in the
Enterprise Structure.

5. Features
The Financial Accounting (FI) Enterprise Structure
includes following features:
 Chart of Accounts
 Fiscal Year Variant
 Company Code Configuration
 Business Areas
 Functional Areas
 Advanced Validation and Substitution
 Sales and Use Tax

7. Chart of Accounts
General Ledger
Accounts Groups
Currencies

8.  This is a list of all G/L accounts used by one or
several company codes.
 For each G/L account, the chart of accounts contains
the account number, account name, and the
information that controls how an account functions
and how a G/L account is created in a company code.

10.  You can use the same chart of accounts for all company
codes
 If the company codes all have the same requirements for the
chart of accounts set up, assign all of the individual
company codes to the same chart of accounts. This could be
the case if all company codes are in the same country.

11.  A general ledger (GL) is a chronological accounting record a
business uses to keep track of financial transactions.
Transactions are categorized and summarized into accounts.
 An account is a unique record for each type of asset, liability,
equity, revenue and expense.
 The number and type of accounts that make up the general
ledger is determined by the chart of accounts (COA).

13. G/L Master Record in the Chart of
Accounts
 G/L account master data in the chart of accounts area
contains information about the G/L account that is
valid for all company codes.
 The chart of accounts area also contains data that
controls how a G/L account is created in the company
code-specific area

14. G/L Account Master Records in the
Company Code
 The company code specific area of a G/L account
contains data that is only valid for one company code,
such as the currency in which the account may be
posted

15. Accounts Groups
 The account group is a summary of accounts based on
criteria that effects how master records are created.
 The account group determines:
 The number interval from which the account number is
selected when a G/L account is created.
 The screen layout for creating G/L accounts in the
company code-specific area

16. Use
When you create a G/L
account in the chart of
accounts area, you must
specify an account group.
Using the account group, you
can group the G/L accounts
according to functional area.
The account group also
defines the set up when
creating a G/L account in the
company code and chart of
accounts

17. Currencies
 Legal means of payment in a country.
 For each monetary amount that you enter in the SAP System,
you must specify a currency.
 In Financial Accounting, you have to specify for each of your
company codes, in which currency ledgers should be
managed. This currency is the national currency of the
company code, that is, the local currency (or company code
currency).
 From a company code view, all other currencies are then
foreign currencies.

18. Types Of Currency
There are 5 types of currency in SAP r/3 system.
 Group Currency: You define Group Currency when you define Client
(SCC4)
 Global Company Currency: You define Global Company Currency when
you define Company that is assigned to your company code.
 Hard Currency: YOU define Hard Currency when YOU define the
Country that your Company code assigned to. A hard currency is used in
countries with high inflation.
 Index-Based Currency: You define IB Currency when You define Country
that your company code assigned to. An index-based currency is stipulated
for external reporting (for example, tax returns), in some countries with
high inflation.
 Company code Currency: You define the company code Currency when
you define Company Code.

19. T-Codes
• OB13 COA creation
• OB62 – Assign Company Code -> Chart of
Accounts
• OBD4 define Account Groups
• OB07 Exchange Rate of Currencies
• Creation of G/L account centrally-FS00
• Creation of G/L account in COA- FSS0
• Creation of G/L account in CC- FSP0