Transcript Document
Module 3
G/L Account
Creation
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G/L Accounts
In the SAP R/3 system, each transaction that has a
financial impact on the organization 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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G/L Account
From: help.sap.com
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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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Reconciliation Accounts
Reconciliation accounts are a special type of
balance sheet account that record the total
amount of accounts receivable and accounts
payable:
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When you post to an account in the sub-ledger (e.g.
customer account, supplier (vendor) account), the
system automatically posts to the corresponding
reconciliation account, and the general ledger is
automatically updated
Reconciliation accounts provide a summary of the
company’s accounts receivable and accounts
payable
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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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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 were created for Fitter Snacker
Balance Sheet Accounts
Profit and Loss Accounts
Reconciliation Accounts
Already created in the Chart of Accounts for entire
class
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Account Groups
Financial accounting General ledger accounting
G/L accounts Master Records Preparations
Define Account Groups
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Field Status Groups and
Variants
Data in the SAP R/3 system is entered in Fields on a
screen. Because SAP is a general purpose program,
not all fields on all screens will require an entry for a
particular company’s implementation. Conversely,
some fields will require an entry, while others will be
optional.
Field Status Groups and Variants can be used to
configure the General Ledger account screens to
define each field as a required entry, optional entry or
suppressed (hidden).
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Field Status Setting
All 5 Account
management
settings are optional
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Corresponding G/L Account
Screen
All 5 Account
management fields
are displayed
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Field Status Setting
Two account
management settings
are suppressed
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Corresponding G/L Account
Screen
Only 3 Account
management fields
are displayed
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Field Status Groups and
Variants
Field status groups are combined into a Field
Status Variant, which is then assigned to a
company code.
The use of Field Status Groups and Variants
is optional—its only purpose is to simplify
G/L Account screens for the user
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Account Currency
Account Currency
Currency that the account will use to record
transactions
Only balances in local currency
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This setting determines how transactions
are handled if postings to this account are
made in currencies other than the account
currency
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Tax Category
Determines whether the account is a tax
account, or a tax-relevant account
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Open Item Management
Indicates that the G/L account entries
requires clearing
Accounts with open item management
require offsetting entries to be assigned
to the postings made to the account.
Postings to these accounts represent
incomplete transactions.
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Open Item Management
Example: Clearing accounts such as the
Goods Receipt/Invoice Receipt (GR/IR)
account
When goods are received for a purchase
order, a credit is created in the GR/IR account
to show that an invoice must be received
When the invoice is received, a debit entry is
created to clear the goods receipt entry
You can only archive documents if all line
items are cleared
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Line item display
If this item is selected, then all debit and
credit detail for the account is available
When posting items to such accounts and
displaying line items, additional storage space and
system time are required
Line item display should not be used for
reconciliation accounts, accounts that have a
summation function and are analyzed by
another application, such as the accounts
"Revenue" and "Stock“ and input and output
tax accounts
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Sort key
Necessary when Line Item display is
selected
Determines the field that will be used to
sort the line items, for example:
Posting date
Document date
Cost center
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