Module 3

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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 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
  sub-ledger 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
• Payablespayment 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 (PL) 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 (PL) 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 sub-ledger,
  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
  recordsconfiguration 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

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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
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Field Status
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Field Status
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Field Status
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G/L Master Records Contain

• Account Currency
• Local currency post to account in any currency
• Default currency
• Transaction figures are always updated and
  displayed in local currency
• System also stores the amounts in any posted
  currencies
• Foreign currency post to account in foreign
  currency only
• Transaction figures and the account balance are
  updated in both the local currency and the
  specified foreign currency

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G/L Master Records Contain

• Tax Category
• You specify the type of tax on sales/purchases
  (input or output tax) that can be posted to the
  account
• If a G/L account is not tax relevant, do not make
  a specification in this field

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G/L Master Records Contain

• Open Item Management
• Indicates that the account requires clearing
• The matching of debits to credits with the
  purpose of closing an item
• Clearing accounts such as the Goods
  Receipt/Invoice Receipt account
• You can only archive documents if all line items
  are cleared

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G/L Master Records Contain

• Line item display
• Select if you would like to view all the debit
  and credit detail for this account
• When posting items to such accounts and
  displaying line items, additional storage space
  and system time are required
• You should not use line item display for the
  following accounts
• Reconciliation accounts
• Accounts that have a summation function and are
  analyzed by another application, such as the
  accounts "Revenue" and "Stock"
• Output and input tax accounts, since tax
  information is required only in connection with
  the document

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G/L Master Records Contain

• 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

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GR/IR Account

• The GR/IR account is used for invoice
  verification. In purchasing, the quantity and
  price can be different between the purchase
  order, received goods and received invoice. The
  GR/IR account is used to properly manage these
  quantity and cost variances.