2 This course covers General Ledger Accounting in SAP, including: General ledger account master records Creating and working with general ledger documents in USD and foreign currency Creating recurring entries in the general ledger Month-end closing procedures Bank transactions Reporting data from general ledger accounts Course Purpose
5 Topic 1 Objectives Upon completion of this unit, you will be able to: List the key steps in the general ledger process flow. Define the key data types in general ledger master records. Describe how general ledger master records are maintained. Identify the sources of general ledger postings. Describe the purposes of general ledger account clearing, balances and reports.
6 Purpose of General Ledger Post journal entries of credit and debit balances in the Chart of Accounts (CoA): Posting can be made on one-time or recurring basis. Postings are in real time: all subsequent transactions are made in light of prior postings. Postings can be made automatically, manually and through interfaces with non-SAP applications. Provide data for balance sheets, profit-and-loss statements and other financial statements and reports for internal and external consumption.
7 General Ledger Master Records General ledger process flow begins with the creation of master records for the G/L accounts in the Chart of Accounts (CoA).
8 Chart of Accounts and the G/L The Chart of Accounts is the collection of all the accounts for the company: Provides a framework for classifying financial and controlling data – revenue, expenses, assets and liabilities - for one or more company codes. G/L account master records contain CoA-specific data. CoA Data Account Name Account Number Account Type Account Group
9 CoA Account Name and Number Account name can have a maximum of 30 alpha- numerical characters. Account number is 6 digits. Related accounts numbers fall in a specific range. I/C Rev Pricing Adjustments Returns DPAs
10 CoA Account Types Account type identifies G/L accounts as: Account types are used to manage debit and credit entries for all business transactions that affect assets, liabilities, revenues and costs. Profit & Loss Accounts Revenue Trading expenses Allocations Cost settlements Balance Sheet Accounts Current assets Non-current assets Current liabilities (AP) Non-current liabilities Shareholders’ equity
11 CoA Account Groups Each G/L account is assigned to an account group when its master record is created. G/L accounts in an account group: Are related in function or purpose. Example: Balance sheet account group Require the same data when creating master records and making journal entries. Have account numbers within a specific range. Financial data from G/L accounts in an account group can be reported separately and collectively in financial statements.
13 Company Codes and the G/L Company is the smallest legal entity with its own balance sheet and profit-and-loss reporting. G/L master records also contain company-code- specific data, such as: Company Data Currency type Tax status Field status group
14 Currency of record appears under Control data. Postings can be made in any currencies, but G/L account balances are maintained and updated in the currency of record. CoCode Currency Type Yen Yuan USD Euro
15 CoCode Tax Status G/L accounts can be taxable or non-taxable: Tax status may mandate the entry of tax data for debits and credits when creating a journal entry.
16 CoCode Field Status Group Different account types (e.g., reconciliation, bank, clearing) require different data in journal entries. Requirements are defined by field status group code.
17 Display G/L Master Records G/L master records contain: Chart of Accounts data shared by all company codes. Company code data that differs from one company code to the next. You can display master records’: CoA data only Company code data only CoA and CoCode data (centrally)
18 G/L Master Record Display - FS00 Chart of Accounts data Company Code data Enter Tabs Click
19 Sub-Ledger Account Displays Display customer and vendor sub-ledger account master records with transactions FD03 and FK03: Reconciliation account is identified under the Account Management tab.
20 General Ledger Process Flow Once the G/L accounts and their master records are created, the G/L process flow can begin: G/L Account Master Record Creation G/L Postings & Recurring Entries G/L Account Balance Inquiries Standard G/L Account Reporting G/L Account Maintenance
21 Triggers, Actions and Outputs Maintain master record by entering or changing: General ledger master records are revised Need for Account Maintenance General ledger accounting documents Month-end accrual Manual one-time journal entries I/C entries Foreign currencies Reevaluations Need for One-time and Recurring Postings Post transactions in general ledger: General ledger account balances reports Review existing G/L accounts as part of monthly analysis of all accounts Need for Account Balances Review activities and balances: Standard general ledger reports At month-end and year-end closings On an ad hoc basis Need for Data on Accounts Create reports on G/L accounts: OUTPUT ACTION REQUIRED TRIGGER Account group Company code Cost center Other relevant data
22 General Ledger Maintenance Once created, G/L accounts and master records must be maintained: CoA and CoCode data can be changed. Accounts can be blocked or marked for deletion. Maintenance can be conducted at CoCode or CoA level: Changes to master records can be displayed with transactions FS04 (centrally), FSP4 (in the CoA) and FSS4 (in a company code). G/L Account Master Record Creation G/L Account Maintenance
23 Blocked and Deleted Accounts Blocking prevents activities in G/L accounts: Postings for one or all company codes to G/L accounts can be blocked. G/L account in one company code cannot be created in another company code. Delinquent customer accounts and inactive accounts can be deleted: Accounts should be blocked from postings before they are deleted. Accounts can be deleted for selected company codes without being deleted from the CoA.
26 General Ledger Postings Once G/L master records are created, financial transactions can be posted to them. G/L Account Master Record Creation G/L Postings & Recurring Entries G/L Account Maintenance
27 Sources of G/L Postings G/L accounts receive posting from: Automated postings from AR, AP, AM and CO modules of costs, revenues, and asset values and depreciations. Interface postings via batch feeds from non-SAP applications (such as payroll and banking). Manual postings by end users: One-time postings with FV50 and other transactions for customer invoices, vendor payments, goods receipts etc. Recurring postings with F.14 and other transactions. Record of postings is an accounting document of a particular document type.
28 FI - G/L Asset Management (FI – AM) Asset Management (FI – AM) Sales Orders (FI - AR) Controlling (CO - CC) Controlling (CO - CC) Automatic postings Batch feeds from external systems SAP manual-entry transactions Uploads from MS Excel Purchase Orders (FI – AP) Purchase Orders (FI – AP) Interface postings Manual postings Sources of G/L Postings
29 AP, AR, AM and G/L Accounts Vendor payments (AP), customer payments (AR) and asset values and book depreciations (AM): Posted manually in sub-ledger accounts. Automatically to G/L reconciliation accounts to create a clearing document. Asset Value/Depreciation Customer Bill Payment AA G/L Clearing Doc Vendor Invoice Payment KR DZ Sub-Ledger PostingDocument Type G/L Clearing Doc
30 CO and G/L Accounts Costs of production, maintenance and projects are collected by cost centers in CO module. Costs are simultaneously posted in the G/L module. See Topic 2 for more information. Posted to a G/L account for PM costs $643 Posted to a cost center for plant maintenance $643 CO FI ManualAutomatic
31 Sub-Ledger Reconciliation Posted in vendor’s sub- ledger account Creates vendor invoice payment document AP Posting Received by AP from vendor Vendor Invoice Automatically posted* in G/L reconciliation account Creates G/L clearing document G/L Posting SAP Posted in customer’s sub- ledger account Creates customer invoice payment document AR Posting Received by AR from customer Customer Payment Automatically posted* in G/L reconciliation account Creates G/L clearing document G/L Posting * No direct postings to reconciliation accounts are allowed. SAP
32 General Ledger Balances Account balances can be displayed for analysis, review in prep for closings, and other purposes: Balances can be displayed for open or cleared items, and for any time periods. G/L Account Master Record Creation G/L Postings & Recurring Entries G/L Account Balance Inquiries G/L Account Maintenance
33 General Ledger Reporting G/L reports can be created at any time (including post-closings) on account reconciliation, balance sheets and P&L statements. G/L Account Master Record Creation G/L Postings & Recurring Entries G/L Account Balance Inquiries Standard G/L Account Reporting G/L Account Maintenance
34 Knowledge Check Under what tab(s) of a G/L master record do you find: Chart of Accounts data? Company code data? What are the four sources of automatic postings to the general ledger? What is the relationship between vendor and customer accounts and the general ledger?