1. © 2005 myCompany General Ledger Instructor Name

2. 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

3. 3 Course Contents Topic 1 – G/L Overview Topic 2 – Cost Center Master Data Topic 3 – G/L Postings Topic 4 – Recurring Entries Topic 5 – Cleared Items in the G/L Topic 6 – Foreign Currency Topic 7 – Month-End Closing Cockpit Topic 8 – Bank Transactions Topic 9 – G/L Reports

4. © 2005 myCompany General Ledger Topic 1 – General Ledger Overview

5. 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. 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. 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. 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. 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. 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. 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.

12. 12 CoA Data in G/L Master Records

13. 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. 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. 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. 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. 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. 18 G/L Master Record Display - FS00 Chart of Accounts data Company Code data Enter Tabs Click

19. 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. 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. 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. 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. 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.

24. © 2005 myCompany Demonstration #1 Display Changes to G/L Master Record Centrally, in CoA and in CoCode – FS04, FSP4 and FSS4

25. © 2005 myCompany Exercise #1 Display Changes to G/L Master Record Centrally, in CoA and in CoCode – FS04, FSP4 and FSS4

26. 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. 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. 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. 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. 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. 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. 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. 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. 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?