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© 2005 myCompany

General LedgerGeneral Ledger

Instructor NameInstructor Name

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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 PurposeCourse Purpose

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Course ContentsCourse 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

© 2005 myCompany

General LedgerGeneral Ledger

Topic 1 – General Ledger OverviewTopic 1 – General Ledger Overview

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Topic 1 ObjectivesTopic 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.

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Purpose of General LedgerPurpose 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.

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General Ledger Master RecordsGeneral 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).

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Chart of Accounts and the G/LChart 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 DataCoA Data

Account Name

Account Number

Account Type

Account Group

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CoA Account Name and NumberCoA Account Name and Number Account name can have a maximum of 30 alpha-

numerical characters. Account number is 6 digits.

Related accounts numbersfall in a specific range.

I/C Rev

Pricing

Adjustments

Returns

DPAs

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CoA Account TypesCoA 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

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CoA Account GroupsCoA 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.

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CoA Data in G/L Master RecordsCoA Data in G/L Master Records

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Company Codes and the G/LCompany 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 DataCompany DataCurrency type

Tax status

Field status group

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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 TypeCoCode Currency Type

Yen

Yuan

USD

Euro

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CoCode Tax StatusCoCode 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.

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CoCode Field Status GroupCoCode 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.

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Display G/L Master RecordsDisplay 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)

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G/L Master Record Display - FS00G/L Master Record Display - FS00

Chart of Accounts data

Company Code data

EnterEnter

TabsTabs

ClickClick

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Sub-Ledger Account DisplaysSub-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.

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General Ledger Process FlowGeneral 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

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Triggers, Actions and OutputsTriggers, 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 forOne-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 forAccount Balances

Review activities and balances:

Standard general ledger reports

• At month-end and year-end closings

• On an ad hoc basis

Need forData on Accounts

Create reports on G/L accounts:

OUTPUT

ACTION REQUIRED

TRIGGER

• Account group

• Company code

• Cost center

• Other relevant data

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General Ledger MaintenanceGeneral 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 atCoCode or CoA level: Changes to master records can be

displayed with transactions FS04 (centrally), FSP4 (in the CoA) and FSS4 (in a company code).


Creation


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Blocked and Deleted AccountsBlocked 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.

© 2005 myCompany

Demonstration #1Demonstration #1

Display Changes to G/L Master Record Centrally, in CoA and in CoCode – FS04, FSP4 and FSS4


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General Ledger PostingsGeneral Ledger Postings Once G/L master records are created, financial

transactions can be posted to them.


Creation


Entries


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Sources of G/L PostingsSources 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.

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FI - G/LFI - G/L

AssetManagement

(FI – AM)

AssetManagement

(FI – AM)

Sales Orders

(FI - AR)

Sales Orders

(FI - AR)

Controlling(CO - CC)Controlling(CO - CC)

Automatic postings

Batch feeds from

external systems

SAP manual-entrytransactions

Uploadsfrom

MS Excel

Purchase Orders

(FI – AP)

Purchase Orders

(FI – AP)

Interface postings

Manual postings

Sources of G/L PostingsSources of G/L Postings

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AP, AR, AM and G/L AccountsAP, 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/DepreciationAsset Value/Depreciation

Customer Bill PaymentCustomer Bill Payment

AA G/L Clearing DocG/L Clearing Doc

Vendor Invoice PaymentVendor Invoice Payment KR

DZ

Sub-Ledger Posting Document Type

G/L Clearing DocG/L Clearing Doc

G/L Clearing DocG/L Clearing Doc

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CO and G/L AccountsCO 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 PMcosts

$643

Posted to acost centerfor plant

maintenance

$643

CO FI

Manual Automatic

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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

SAPSAP

SAPSAP SAPSAP• 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.

SAPSAP

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General Ledger BalancesGeneral 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.


Creation


Entries



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General Ledger ReportingGeneral Ledger Reporting G/L reports can be created at any time (including

post-closings) on account reconciliation, balance sheets and P&L statements.


Creation


Entries


Standard G/L Account

Reporting


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Knowledge CheckKnowledge 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?

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