SAP FI

General Ledger
Table of Contents

GL Overview
Sub Processes
Master Data
Transaction Processing
Account Analysis / Reconciliation
Periodic Processing
Reporting
SAP Modules - Overview

SD FI
Sales & Financial
Distribution Accounting
MM CO
Materials Controlling
Mgmt.
PP AM
Product Fixed Asset
Planning Mgmt.

QM SAP R/3 PS
Quality Project
Mgmt. System
PM OC
Plant Maint. Office &
Comm.
HR IS
Human Industry
Resources Solutions
FI Financial Accounting Modules
FI - Financial Accounting Modules

General Ledger
GL
Special Ledger
Accounts Payable
SL GL
AP
Legal Accounts Receivable
Consolidation LC FI AR

TM CM
Travel
Management AM Cash Management
&

IM
Asset and Investment
Management
Financial Accounting / Controlling

Financial Accounting
Legal / Statutory Accounts
Standard Ledgers
Master Data Integrates with Controlling
Controlling
Management Accounts
Manage Budget Expenditure
General Ledger - Integration
 A Group Hierarchical Structure

Company A Group

A Grp Common
Chart of Accounts Chart of Accounts
(YCCA)

Company Codes A Ltd (9100)

A1 Ltd (9200)

Financial Management Area A Grp FM Area

)9100(
Chart of Accounts

The Chart of Accounts

Contains the definitions of
COA all G/L accounts in an
YCCA ordered form
Each general ledger is set
up according to a Chart of
Accounts
Many company codes may
use the same COA
All A Grp. organizational
units use the same Chart
of Accounts: YCCA.
Company Code Company Code
9100 A Ltd 9200 A1 Ltd
Company Code

Company Code
It is an independent accounting entity. A company code is assigned
to a chart of accounts.
Each company code in A Group uses the G/L accounts from only
one chart of accounts for account validation. This is called the
operating chart of accounts.
A chart of accounts can be used by multiple companies provided
they have the same basic account requirements.
General Ledger Process Overview

Financial
Accounting

General
Ledger

Master Transaction Account Periodic Reporting

Data Processing Analysis & Processing
Reconciliation
Master Data
Account Groups
Maintenance
Creation at 2 Levels
Chart of Accounts Data
Company Code Data
Change
Block
Delete
Cost Elements
Creation
GL Account Groups

A Grp COA Number Ranges

Account Groups
 GL Account Master Record

General Ledger
Balance P&L
Balance P&L
TT TT TT TT TT
Chart of Acct number: 119430 TT TT TT TT TT

t :
TT TT TT TT TT

gm up
accounts Description:

l M ro
ia g
segment Inventory Finished goods

er nt
at ou
c
Ac
Bal. sheet acct: )Balance c/fwd(

da l r
Inc. statem. acct:

e ro e b
nc n m
r e co u

ta
fe g t n
t
re tin n u
er os o
th P cc
Company

O t. a
Au ank
code

B
Currency Item management
Tax-related Posting control... segment
Blocking of G/L Accounts

G/L Accounts are blocked at two levels

Chart of Accounts level
Company Code level
In Chart of accounts you block
A master from creating in the Company Code
An account for posting
In Company Code you block
An account for posting

NOTE: You can set or cancel the posting indicator at any time
Mark G/L Accounts for Deletion

G/L Accounts are not physically deleted without taking

preparatory steps
Mark it for Deletion
Specify that record must be archived
Archive the transaction data attached to that master record
Execute the G/L deletion program
Cost Elements Chart of Accounts
A Grp. Chart of Accounts - YCCA

Financial Accounting
1 2 3 4 8
Assets Liabilities Equity Expense Revenue
accounts

1 2 3 4 8 9
Current Non- Material
financial opera- inventory Primary
cost
Revenue Secondary
ting elements cost
assets costs, elements elements
and revenue
short-
term
capital Controlling

Profit Center Accounting

The Cost Element
CO FI
Primary cost elements G/L
accounts
Primary cost element
External order settlement
P&L Balance sheet
accounts accounts

Secondary cost elements Expense accounts Accounts posted

to directly, such as
Internal activity allocation bank accounts
Assessment
Overheads
Internal order settlement Accounts posted
to indirectly, such
as reconciliation
Revenue elements
accounts
Revenue element Revenue account
Sales deduction
General Ledger Process Overview

Financial
Accounting

General
Ledger

Master Transaction Account Periodic Reporting

Data Processing Analysis & Processing
Reconciliation
 Transaction Processing
SAP R/3 supports the following transactions:
Journal (JV) Processing
Document Principle
Document Structure
Foreign Currency documents
Parked documents
Posting with Reference
Reversing / Canceling documents
Document Posting: Activity Flow

Create G/L Create G/L Posting Post Manual

account posting Fast Entry Journal

Holding an incomplete
document
Simulate No
)Enough Info
to Complete Posting?(
Create/Display a Parked
Document
Yes

Posted Entry Post/Release a

Parked Document
The Accounting Documents

Document No: 123456

Header Date: 6/5/1000x
Company Code: 5200
Currency: US$ ,,,,

Debit Credit

1,000,000
800,000 Line items
200,000

Total: 1,000,000 1,000,000

Each document consists of two segments: header and line items.

After posting it receives a unique document number.
A Grp. will use the standard document types of SAP. The system
assigns the document numbers automatically.
Document Number Ranges

9999999999
02
9000000000 EX
External numbering 02
8000000000
Current numbers
7000000000
01
6000000000 SB
Internal numbering 01
defined until fiscal
5000000000
year in the future
4000000000
Current numbers
3000000000 00
DR
2000000000 Internal 00
numbering
1000000000 defined per fiscal
0000000000 year
1998 1999 2000 2001...
The Documents Header

Dates:
Document Date,
Posting Date,
Translation Date,
Entry Date (automatic),
Period.
Document Type
Company Code
Currency
Additional information:
Reference,
Short text.
Posting keys

Field

Relevant for postings no suppress

on accounts of this type?
yes

Posted with which Posted on Account

posting key? which account?
PK ...
PK ...

Po
de stin t- t
g
sta pend key n
ou den s
tus en - c
t fi Ac pen tatu
eld de ld s
Priority

fi e
?
Line items

During document entry, certain fields need to be

filled in. For example, when posting expenses, a
cost center and tax information is usually
required.
Tax fields are only ready for entry if the general
ledger account is set up as tax-relevant.
Posting a document

Document entered
correctly

Posting functions

You can now:

Simulate your document - press the Simulate button:
Or post it immediately - press Save button (F11)
 Posting in Foreign Currency
Local currency - Functional currency of the company code
Document currency - Currency of the document
Group currency - Alternative currency for group reporting

For every Company Code theres defined a company code currency,

ie, every company code has a local currency.
Every document, posted in different currency than company code
currency, is processed as a foreign currency document.
Accounting documents can be posted in a foreign currency
The foreign currency is converted to local currency and both are stored
in the document along with the exchange rate
 Posting in Foreign Currency
1.

2.

3.

1. Exchange rate can be entered manually,

2. Or derived from Exchange Rates Table
3. System automatically translates the foreign currency
into CC currency.
Parking / Holding a Document

After entering the document it is possible:

To post it immediately
To park the document
To hold the document
Reference Documents
Document # 1 )Reference Document(:
Header: 01/03/2003 Comp. Code: 5200

Line Items:
PK Account Amount
40 123000 5000
50 345560 2000
50 907902 3000

Document # 2:

Line Items:
PK Account Amount
40 123000 5000
50 345560 2000
50 907902 3000

Reference documents are either accounting documents or sample

documents that are used as a reference to post an accounting document.
 Reverse a GL document

Document entered incorrectly

Balance sheet
Assets

Liabilities
Document corrected by Reversal:
Reverse with a standard reversal
Shared equity posting
Reverse with a negative posting

Document re-entered correctly

Mass Reversal of Documents

Mass Reversal
Procedure

Many documents may be reversed at the same time,

Process may be scheduled to be performed in the background.
General Ledger Process Overview

Financial
Accounting

General
Ledger

Master Transaction Account Periodic Reporting

Data Processing Analysis & Processing
Reconciliation
Account Analysis / Reconciliation
SAP R/3 supports the following transactions:
Display G/L account balance
Display G/L line items
G/L account analysis functions
Clear outstanding items on G/L account
Account: balance and line items

Account balance
Account Balances display
Opening Balance (Carry forward Balance from previous year)
Totals of all transactions for each posting period broken down for
Debits and Credits

From these figures the system calculates the following for the
account balance function
Balance per posting period
Accumulated balance for the account
Account: balance and line items

Line items

Line items can be displayed on G/L accounts which are managed

with Line Item display
Line items are displayed on-line
Line Items can be totaled and sorted according to user requirements
Additional fields can be added to the Line Item display screen
Alternative custom defined Line Layouts can be defined
Account Analysis Functions

Functions supporting
account analysis are
grouped on the
Application toolbar
 Open Item Clearing
1 2

3
You can only
Open items clear open items
represent for accounts that
transactions are open item
that are managed.
incomplete.

The balance of an open item managed

accounts are the reconciliation items.
Reversal of Clearing

Display cleared items

Reversal of clearing

Reversal of documents that were cleared before is not possible,

First the clearing operation must be reset.
General Ledger Process Overview

Financial
Accounting

General
Ledger

Master Transaction Account Periodic Reporting

Data Processing Analysis & Processing
Reconciliation
Period End Processing
SAP R/3 supports the following transactions:
Fiscal Year variants & Posting Period
Clear open items, both manually and automatically
Create, maintain and process accrual/deferral transactions
Recurring Entries
Revalue balances in foreign currencies
Reconciliation of documents with monthly debits & credits
Roll over of closing balances to form opening balances can be
performed multiple times and after the beginning of the new fiscal year.
Posting Periods
Company Code Data Fiscal Year Variants
Company Code 0001 K4 Same as Calendar Year
FY Variant R1 R1 Shortened Fiscal Year
V3 Non-Calendar Fiscal Year

Calendar Year
Year 2003
Properties Periods
FY Variants R1 FY Variants R1
Calendar Year Mo. Day Period Year
Year-Dependent C 01 31 10 -1
No. of Post. Per. 12 02 28 11 -1
No. of Special Per. 2 03 31 12 -1
04 30 01
:
12 31 09

Every transaction that is posted is

assigned to a particular posting
period
GL Account Clearing

Automatic
Payment

Bank Statement

A typical example of an open item is, for instance, a bank clearing

account.
A transaction is cleared when an offset value is posted to an item or
group of items, so that the resulting balance of the items is zero.
Automatic Clearing Program
Open items for G/L Accounts, Vendors and Customers can be
cleared automatically by running the Clearing Program
Set up predefined criteria for automatic clearing (Configuration)
Program groups those items from an account that have the same
Trading Partner ID
Reconciliation Number
Currency in which the General Ledger is updated
Four freely definable criteria

Accounts
xxxxxx xxxxxx xxxxxx xxxxxx
---- ---- ---- ---- ---- ---- ---- ----
---- ---- ---- ---- ---- ---- ---- ----
---- ---- ---- ---- ---- ---- ---- ----
---- ---- ---- ---- ---- ---- ---- ----
---- ---- ---- ---- ---- ---- ---- ----

Automatic clearing
program
Deferrals & Accruals
Accruals and deferrals can be handled automatically by the SAP R/3
system
Accrual/Deferral Documents are created on a monthly basis to record
expenses/income which were anticipated but not yet realized
Once a transaction has been approved, it can be set up and run
automatically each month.
The recurring entry program helps to maintain Accruals / Deferrals
postings
Standard Journal Posting
Has a reversing date
Reversal Date can be any date in the future
Monthly job is scheduled to reverse all Accrual/Deferral Documents automatically
Recurring Entry Document

Posting Parameters

First run on 01/01/2002

Last run on 12/01/2002
Interval in months 01
Run Date 15
Run Schedule ____

Document ____________
______________________
______________________

03/01/2002
___________________
02/01/2002
___________________
___________________
01/01/2002 ___________________
___________________
___________________
___________________
Batch Input ___________________
Session ___________________
Recurring Entry Document (2)
Dates when the first and the last recurring entries are to be
carried out

Document s
Header

Line items
General Ledger Process Overview

Financial
Accounting

General
Ledger

Master Transaction Account Periodic Reporting

Data Processing Analysis & Processing
Reconciliation
Reporting
SAP system offers number of reports that help analyzing
entered business transactions:
Financial Statement Version (Balance Sheet and P&L)
Account Balances
Line Items
Documents
Master Data
Report can be:
Printed out directly to the printer,
Saved as a local file (txt format, Excel file etc.)
Sent by e-mail
Reporting Requirements

Balance Cash
Sheet Flow FI
Income
External Reporting Statement

CO
Internal Reporting
Cost
Product Center Profit
Cost Center
Financial Statement Version
Financial Statement Versions are set up to represent the balance
sheet and P+L statement according to your own specific requirements
Can be created for different legal entities
Can be created in different Languages
Are executed in desired currency i.e. Local, Group

Using the Financial Statement you specify

Line items to be included in the Financial Statement
Sequence the line items are displayed
The COA and the accounts that are displayed in the Financial Statement
The totals that are presented on the Financial Statement

Balance Income
Sheet Statement
Report Tree

SAP Menu

Transaction SA38

A user can run the required report in two ways:

Directly from Report Tree
Using transaction SA38, provided the he knows the report name
Report Tree

SAP Menu

Transaction SA38

A user can run the required report in two ways:

Directly from Report Tree
Using transaction SA38, provided the he knows the report name
Report Execution

Report Execution

Selection of Report Parameters

Variant Selection Dynamic selection

A report can be executed directly or scheduled in the

background
Report Variant

2 2( Press Save button

1( Enter the required

1 criteria on the selection
screen

3( Enter the variants

3 name
General Ledger Process Overview

Financial Process decompositions are the starting

Accounting
point for our process documentation.
They summarise what is involved in a
the GL process at a high level
General
Ledger

Master Transaction Account Periodic Reporting

Data Processing Analysis & Processing
Reconciliation