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5/1/2015 1 Accounting. 5/1/2015 2 G/L Accounts  In the SAP R/3 system, each transaction that has a financial impact is recorded in a general ledger (G/L)

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Presentation on theme: "5/1/2015 1 Accounting. 5/1/2015 2 G/L Accounts  In the SAP R/3 system, each transaction that has a financial impact is recorded in a general ledger (G/L)"— Presentation transcript:

1 5/1/ Accounting

2 5/1/ G/L Accounts  In the SAP R/3 system, each transaction that has a financial impact is recorded in a general ledger (G/L) account or sub-ledger accounts that are posted to the G/L via reconciliation accounts.  The central task of G/L accounting is to provide a comprehensive picture for external accounting and accounts. Recording all business transactions (primary postings as well as settlements from internal accounting) in a software system that is fully integrated with all the other operational areas of a company ensures that the accounting data is always complete and accurate.

3 5/1/ G/L Accounts  The SAP FI General Ledger has the following features: Automatic and simultaneous posting of all sub- ledger items in the appropriate general ledger accounts (reconciliation accounts) Simultaneous updating of general ledger and cost accounting areas Real-time evaluation of and reporting on current accounting data, in the form of account displays, financial statements with different financial statement versions and additional analyses.  Can take some getting used to as reports can change continuously

4 5/1/ G/L Account  Essentially, the general ledger serves as a complete record of all business transactions. It is the centralized, up-to-date reference for the rendering of accounts. Actual individual transactions can be checked at any time, in real-time, by displaying the original documents, line items, and transaction figures at various levels such as: Account information Journals Totals/transaction figures Balance sheet/profit and loss evaluations

5 5/1/ Master Data Describes items or objects used in a business such as accounts, materials, vendors, customers that remains unchanged over an extended period of time Transaction data is data that is used for relatively short periods of time, usually to record business transactions (sales orders, purchase orders, production orders, payroll amounts) Transaction data is regularly removed from the system in a process known as archiving. For auditing purposes, it cannot simply be deleted. A master record must be created for every G/L account

6 5/1/ Balance Sheet Accounts  Assets What the firm owns, in various levels of liquidity: Cash Receivables Inventory Plant & Equipment Real Estate

7 5/1/ Balance Sheet Accounts  Liabilities What the firm owes Payables—payment for materials/services received on credit Bank loans

8 5/1/ Balance Sheet Accounts  Equity The difference between total assets and total liabilities Includes Retained earnings Net income on past periods Assets = Liabilities + Equity

9 5/1/ Profit and Loss (P&L) Accounts  Revenues Money obtained by the sale of goods and services to customers  Expenses Money spent to produce the revenue: Materials Utilities Salaries Selling expenses Administrative expenses

10 5/1/ Contain an identifier for the Retained Earnings account At fiscal year end, the P & L accounts are ‘closed’ to the Retained Earnings account Profit and Loss (P&L) Accounts

11 5/1/ Reconciliation Accounts  Reconciliation account Accounts receivable, Accounts payable, Assets When you post to an account in the sub- ledger, the system automatically posts to the corresponding reconciliation account The general ledger is automatically updated

12 5/1/ G/L Master Records Contain:  Chart of Accounts  Company Code  G/L account number  G/L account name  Account type: Balance sheet or Income Statement  Account group

13 5/1/ Account Groups  Identifier that controls which fields must be entered when the account is created  Can determine a valid number interval for the G/L account  Must be created before creating G/L master records— configuration data  Three Account Groups created for Fitter Snacker Balance Sheet Accounts Profit and Loss Accounts Reconciliation Accounts

14 5/1/ Account Groups Financial accounting  General ledger accounting  G/L accounts  Master Records  Preparations  Define Account Groups

15 5/1/ Account Determination  When you enter a goods movement (inventory receipt, inventory withdrawal, variances, etc.), you do not have to enter G/L accounts since R/3 automatically determines the correct accounts.  Automatic Account Determination is set in Customizing (IMG)

16 5/1/ Valuation Grouping Code  Allows the same account determination rules to be used in multiple plants  Assign a valuation grouping code to the valuation area, then use the valuation grouping code in automatic account assignment

17 5/1/ Automatic Account Determination  Hierarchical Process (classification) Chart of Accounts/Company Code Valuation area/grouping code  Transaction/Event Key (from transaction being executed)  Goods Receipt Modifier (if applicable)  Valuation Class (from material master)  All specified at time of transaction

18 5/1/ Automatic Account Determination  Transaction Keys: BSX: Inventory Postings GBB: Offsetting Entry for Inventory Postings DIF: Materials Management Small Differences PRD: Cost (price) differences WRX: Goods receipt / inv. receipt clearing acct

19 5/1/ Automatic Account Determination  Valuation Class 3000: Raw Materials 7900: Semi-finished 7920: Finished

20 5/1/ Automatic Account Determination General Account Modifier Usage AUFGoods Receipt From Production Order – post to production settlement BSAGoods Receipt Into Initial Stock – only used once for posting inventory off- set for initial stock data load VAXGoods Issue To Sales - post to Cost of Goods Sold (COGS) VBRGoods Issue to Consumption - post to material consumption (e.g., goods issue to job or production order)

21 5/1/ Automatic Account Determination  From Transaction: Company Code Chart of Accounts Transaction Key (not same as transaction code) General Account Modifier (if applicable)  From Material Valuation Class  Determines: G/L Account for Posting

22 5/1/ Transaction Keys

23 5/1/ Automatic Account Determination  CHFS BSX 00AP 3000 Account

24 5/1/ Controlling (CO) COFI Controlling Internal Accounting Cost Accounting Managerial Accounting Management Accounting Flexible – Non-standard Financial Accounting External Accounting Financial Statements Legal Requirements Standard

25 5/1/  While there are different requirements for internal and external users of accounting data, the underlying data is usually the same for both purposes and can be “captured” while recording business transactions— purchase orders, goods receipts, material withdrawals, etc. The data can then be presented in different ways for different users.  Info system reports in FI are standard G/L Account Listing  Info system reports in CO are flexible Controlling (CO)

26 5/1/ Cost Elements  Primary Cost Elements Expenses in FI that are relevant to cost accounting are recorded in CO using primary cost element. Primary cost elements can only be created when a G/L expense account exists. Thus, there is a one- to-one relationship between primary cost elements and G/L expense accounts. When an FI posting occurs in a G/L account for which a primary cost element has been defined, a valid controlling object (cost center, order, etc.) is required before posting.

27 5/1/ Cost Elements  Secondary Cost Elements Secondary Cost Elements are used exclusively for certain types of CO transactions. Secondary cost elements have no corresponding G/L account. Secondary cost elements can be used in transferring costs from one cost center to other cost centers. Primary costs are grouped together and transferred to receiver cost centers using a secondary cost element.

28 5/1/ Cost Centers  Cost centers are used to track WHERE costs occur in the organization. As costs are incurred, they are assigned or posted to the appropriate cost center.  The posting and assignment of costs to cost centers is a critical step in using the CO module.  Cost centers are organized in a Standard Hierarchy.

29 5/1/ Cost Center Standard Hierarchy  The cost center standard hierarchy organizes cost centers and provides the ability to organize reports at different levels in the organization:

30 5/1/ Cost Center Groups  Cost Center Groups can also be defined to support additional reporting capabilities:

31 5/1/ Cost Allocation  Frequently, costs like rent, computer expense, utilities, etc. have to be allocated to cost centers to provide accurate cost reporting.  Costs can be allocated using a statistical key figure, which defines some measurable value related to the cost center, like square footage, head count, CPU hours, etc.  Costs can also be distributed using fixed percentages.

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