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Accounting 4/13/2017.

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Presentation on theme: "Accounting 4/13/2017."— Presentation transcript:

1 Accounting 4/13/2017

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) 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. 4/13/2017

3 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 4/13/2017

4 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 4/13/2017

5 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 4/13/2017

6 Balance Sheet Accounts
Assets What the firm owns, in various levels of liquidity: Cash Receivables Inventory Plant & Equipment Real Estate 4/13/2017

7 Balance Sheet Accounts
Liabilities What the firm owes Payables—payment for materials/services received on credit Bank loans 4/13/2017

8 Balance Sheet Accounts
Equity The difference between total assets and total liabilities Includes Retained earnings Net income on past periods Assets = Liabilities + Equity 4/13/2017

9 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 4/13/2017

10 Profit and Loss (P&L) Accounts
Contain an identifier for the Retained Earnings account At fiscal year end, the P & L accounts are ‘closed’ to the Retained Earnings account 4/13/2017

11 Reconciliation Accounts
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 4/13/2017

12 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 4/13/2017

13 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 4/13/2017

14 Account Groups Financial accounting General ledger accounting
G/L accounts Master Records Preparations Define Account Groups 4/13/2017

15 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) 4/13/2017

16 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 4/13/2017

17 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 4/13/2017

18 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 4/13/2017

19 Automatic Account Determination
Valuation Class 3000: Raw Materials 7900: Semi-finished 7920: Finished 4/13/2017

20 Automatic Account Determination
General Account Modifier Usage AUF Goods Receipt From Production Order – post to production settlement BSA Goods Receipt Into Initial Stock – only used once for posting inventory off-set for initial stock data load VAX Goods Issue To Sales - post to Cost of Goods Sold (COGS) VBR Goods Issue to Consumption - post to material consumption (e.g., goods issue to job or production order) 4/13/2017

21 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 4/13/2017

22 Transaction Keys 4/13/2017

23 Automatic Account Determination
CHFS BSX 00AP Account 4/13/2017

24 Controlling (CO) Controlling Internal Accounting Cost Accounting CO
Managerial Accounting Management Accounting Flexible – Non-standard CO Financial Accounting External Accounting Financial Statements Legal Requirements Standard FI 4/13/2017

25 Controlling (CO) 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 4/13/2017

26 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. 4/13/2017

27 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. 4/13/2017

28 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. 4/13/2017

29 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: 4/13/2017

30 Cost Center Groups Cost Center Groups can also be defined to support additional reporting capabilities: 4/13/2017

31 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. 4/13/2017

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