Transcript Accounting - SAP Instructional Materials Site

Accounting
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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.
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G/L Accounts
 The SAP FI General Ledger has the following features:
 Automatic and simultaneous posting of all subledger 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
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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
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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
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Balance Sheet Accounts
Assets

What the firm owns, in various
levels of liquidity:
 Cash
 Receivables
 Inventory
 Plant
& Equipment
 Real Estate
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Balance Sheet Accounts
Liabilities

What the firm owes
 Payables—payment
for
materials/services received on credit
 Bank loans
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Balance Sheet Accounts
Equity
The difference between total
assets and total liabilities
 Includes

 Retained
earnings
 Net income on past periods
Assets = Liabilities + Equity
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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
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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
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Reconciliation Accounts
 Reconciliation account

Accounts receivable, Accounts
payable, Assets
 When
you post to an account in the subledger, the system automatically posts to
the corresponding reconciliation account
 The general ledger is automatically
updated
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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
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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
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Account Groups
Financial accounting General ledger accounting
G/L accounts Master Records Preparations
Define Account Groups
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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)
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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
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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
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Automatic Account
Determination
 Transaction Keys:





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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
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Automatic Account
Determination
 Valuation Class



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3000: Raw Materials
7900: Semi-finished
7920: Finished
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Automatic Account
Determination
General
Account
Modifier
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Usage
AUF
Goods Receipt From Production Order
– post to production settlement
BSA
Goods Receipt Into Initial Stock – only
used once for posting inventory offset 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)
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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
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Transaction Keys
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Automatic Account
Determination
 CHFS BSX 00AP 3000
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Account 200000
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Controlling (CO)
CO
FI
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Controlling
Internal Accounting
Cost Accounting
Managerial Accounting
Management Accounting
Flexible – Non-standard
Financial Accounting
External Accounting
Financial Statements
Legal Requirements
Standard
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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
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Cost Elements
 Primary Cost Elements



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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 oneto-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.
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Cost Elements
 Secondary Cost Elements



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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.
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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.
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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:
FS-CC-## (Standard Hierarchy)
##HQ (Cost Center Group / Hierarchy Area)
HQ Cost Centers
A010 – Finance
A020 – H/R
A030 – Sales
A040 – Marketing
A050 – Purchasing
A060 - Administration
##MFG (Cost Center Group / Hierarchy Area)
MFG Cost Centers
P010 – Production
P020 – Warehouse
P030 – Receiving
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Cost Center Groups
 Cost Center Groups can also be defined
to support additional reporting
capabilities:
##HQ (Cost Center Group / Hierarchy Area)
HQ Cost Centers
A010 – Finance
A020 – H/R
A030 – Sales
A040 – Marketing
A050 – Purchasing
A060 - Administration
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## Sales group
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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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