CFGModule 3 - GL Account Creation

8/3/2019 CFGModule 3 - GL Account Creation

1/25

5/5/2012 1

Module 3

G/L AccountCreation


2/25

5/5/2012 2

G/L Accounts

In the SAP R/3 system, each transaction that has afinancial impact is recorded in a general ledger (G/L)

account or sub-ledger accounts that are posted to theG/L via reconciliation accounts.

The central task of G/L accounting is to provide acomprehensive picture for external accounting andaccounts. Recording all business transactions (primary

postings as well as settlements from internalaccounting) in a software system that is fully integratedwith all the other operational areas of a companyensures that the accounting data is always completeand accurate.


3/25

5/5/2012 3

G/L Accounts

The SAP FI General Ledger has the following features:

Automatic and simultaneous posting of all sub-

ledger items in the appropriate general ledgeraccounts (reconciliation accounts)

Simultaneous updating of general ledger and costaccounting areas

Real-time evaluation of and reporting on currentaccounting data, in the form of account displays,financial statements with different financialstatement versions and additional analyses.

Can take some getting used to as reports can change

continuously


4/25

5/5/2012 4

G/L Account

Essentially, the general ledger serves as a completerecord of all business transactions. It is the centralized,

up-to-date reference for the rendering of accounts.Actual individual transactions can be checked at anytime, in real-time, by displaying the original documents,line items, and transaction figures at various levelssuch as:

Account information Journals

Totals/transaction figures

Balance sheet/profit and loss evaluations


5/25

5/5/2012 5

G/L Account

From: help.sap.com


6/25

5/5/2012 6

Master Data

Describes items or objects used in a business such asaccounts, materials, vendors, customers that remains

unchanged over an extended period of time Transaction data is data that is used for relatively shortperiods of time, usually to record business transactions(sales orders, purchase orders, production orders,payroll amounts)

Transaction data is regularly removed from the systemin a process known as archiving. For auditingpurposes, it cannot simply be deleted.

A master record must be created for every G/Laccount


7/255/5/2012 7

Balance Sheet Accounts

Assets

What the firm owns, in variouslevels of liquidity:CashReceivablesInventoryPlant & EquipmentReal Estate


8/255/5/2012 8


Liabilities

What the firm owesPayablespayment for

materials/services received on credit

Bank loans


9/255/5/2012 9


Equity

The difference between totalassets and total liabilities

Includes

Retained earningsNet income on past periods

Assets = Liabilities + Equity


10/255/5/2012 10

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


11/255/5/2012 11

Contain an identifier for the RetainedEarnings account

At fiscal year end, the P & L accountsare closed to the Retained Earnings

account

Profit and Loss (P&L)

Accounts


12/255/5/2012 12

Reconciliation Accounts

Reconciliation account

Accounts receivable, Accountspayable, AssetsWhen you post to an account in the sub-

ledger, the system automatically posts to

the corresponding reconciliation accountThe general ledger is automatically

updated


13/255/5/2012 13

G/L Master Records

Contain: Chart of Accounts

Company Code G/L account number

G/L account name

Account type: Balance sheet or IncomeStatement

Account group


14/255/5/2012 14

Account Groups

Identifier that controls which fields must be enteredwhen 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 University Cellular

Balance Sheet Accounts Profit and Loss Accounts

Reconciliation Accounts

Already created in the Chart of Accounts for entire

class


15/255/5/2012 15

Account Groups

Financial accountingGeneral ledger accountingG/L accountsMaster Records PreparationsDefine Account Groups


16/255/5/2012 16

Field Status


17/255/5/2012 17

Field Status


18/255/5/2012 18

Field Status


19/25

5/5/2012 19

Field Status


20/25

5/5/2012 20

G/L Master Records Contain:

Account Currency

Local currency = post to account in anycurrency

Default currency

Transaction figures are always updated and displayed inlocal currency

System also stores the amounts in any posted currencies

Foreign currency = post to account in foreigncurrency only

Transaction figures and the account balance are updated inboth the local currency and the specified foreign currency


21/25

5/5/2012 21


Tax Category

You specify the type of tax onsales/purchases (input or output tax) thatcan be posted to the account

If a G/L account is not tax relevant, do not

make a specification in this field


22/25

5/5/2012 22


Open Item Management

Indicates that the account requires clearing

The matching of debits to credits with thepurpose of closing an item

Clearing accounts such as the Goods Receipt/InvoiceReceipt account

You can only archive documents if all line itemsare cleared


23/25

5/5/2012 23


Line item display

Select if you would like to view all the debit andcredit detail for this account When posting items to such accounts and displaying line

items, additional storage space and system time arerequired

You should not use line item display for the followingaccounts:

Reconciliation accounts

Accounts that have a summation function and areanalyzed by another application, such as the accounts"Revenue" and "Stock"

Output and input tax accounts, since tax information isrequired only in connection with the document


24/25

5/5/2012 24


Sort key Necessary when Line Item display is

selected Determines the field that will be used to

sort the line items Posting date

Document date Cost center


25/25

5/5/2012 25

GR/IR Account

The GR/IR account is used for invoiceverification. In purchasing, the quantity and

price can be different between the purchaseorder, received goods and received invoice.The GR/IR account is used to properlymanage these quantity and cost variances.

CFGModule 3 - GL Account Creation

Documents

Transcript of CFGModule 3 - GL Account Creation