Field status group: Field status groups control the additional account assignments and
other fields that can be posted at the line item level for a G/L account.
Posting Key: A two-digit numerical key that determines the way line items are posted. This
key determines several factors including the: Account type, Type of posting (debit or
credit),Layout of entry screens .
Open item management: A stipulation that the items in an account must be used to clear
other line items in the same account. Items must balance out to zero before they can be
cleared. The account balance is therefore always equal to the sum of the open items.
Clearing: A procedure by which the open items belonging to one or more accounts are
indicated as cleared (paid).
Reconciliation account: A G/L account, to which transactions in the subsidiary ledgers
(such as in the customer, vendor or assets areas) are updated automatically.
Special G/L indicator: An indicator that identifies a special G/L transaction. Special G/L
transactions include down payments and bills of exchange.
Special G/L transaction: The special transactions in accounts receivable and accounts
payable that are shown separately in the general ledger and sub-ledger.
They include:
Bills of exchange
Down payments
Guarantees
House Bank: A business partner that represents a bank through which you can process
your own internal transactions.
Document type: A key that distinguishes the business transactions to be posted. The
document type determines where the document is stored as well as the account types to be
posted.
Account type: A key that specifies the accounting area to which an account belongs.
Examples of account types are:
Asset accounts
Customer accounts
Vendor accounts
G/L accounts
Dunning frequency
Amount limits
Dunning level: A numeral indicating how often an item or an account has been dunned.
Dunning key: A tool that identifies items to be dunned separately, such as items you are
not sure about or items for which payment information exists.
Year-end closing: An annual balance sheet and profit and loss statement, both of which
must be created in accordance with the legal requirements of the country in question.
Standard accounting principles require that the following be listed:
All assets
Month-end closing: The work that is performed at the end of a posting period.
Functional area: An organizational unit in Accounting that classifies the expenses of an
organization by functions such as:
Administration
Marketing
Production
Accruals
An accrual is any expenditure before the closing key date that represents an expense for
any period after this date.
Deferral
Deferred income is any receipts before the closing key date that represent revenue for any
period after this date.
Statistical posting: The posting of a special G/L transaction where the offsetting entry is
made to a specified clearing account automatically (for example, received guarantees of
payment).
Statistical postings create statistical line items only.
Valuation area: An organizational unit in Logistics subdividing an enterprise for the
purpose of uniform and complete valuation of material stocks.
Chart of depreciation: An object that contains the defined depreciation areas. It also
contains the rules for the evaluation of assets that are valid in a specific country or
economic area. Each company code is allocated to one chart of depreciation. Several
company codes can work with the same chart of depreciation. The chart of depreciation and
the chart of accounts are completely independent of one another.
Asset class: The main criterion for classifying fixed assets according to legal and
management requirements.
For each asset class, control parameters and default values can be defined for depreciation
calculation and other master data.
Each asset master record must be assigned to one asset class.
Special asset classes are, for example:
Low-value assets
Leased assets
Financial assets
Technical assets
Depreciation area: An area showing the valuation of a fixed asset for a particular purpose
(for example, for individual financial statements, balance sheets for tax purposes, or
management accounting values).
Depreciation key: A key for calculating depreciation amounts.
The depreciation key controls the following for each asset and for each depreciation area:
Calculation methods for ordinary and special depreciation, for interest and for the
cutoff value
Period control method: A system object that controls what assumptions the system
makes when revaluating asset transactions that are posted partway through a period.
Using the period control method, for example, you can instruct the system only to start
revaluating asset acquisitions in the first full month after their acquisition.
The period control method allows different sets of rules for different types of asset
transactions, for example, acquisitions and transfers.
Depreciation base: The base value for calculating periodic depreciation.
The following base values are possible, for example:
Replacement value