SAP Financial Accounting (FI) Bootcamp

Day 1
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Course Objectives
Provide overview of SAP Financial Accounting (FI) functionalities and integration with other modules Introduce FI Organisation structure, master data, business transactions, and reporting Provide hands-on experience with basic FI business transactions Provide hands-on experience with basic FI configuration Share SAP project experience
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Agenda Day 1
Course Introduction Financial Accounting General Ledger Master Data Enterprise Structure General Ledger Business Transactions & Open and Cleared Items

Course Introduction
Ground Rules
Participate - Ask questions! Learn From Everyones Comments Please Turn Off Cellular Phones Honor Time Schedule Relax and Have Fun!

Introduce Yourself
Name, Operating Group, Location Your SAP FI Bootcamp Objective(s)
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Reference Material
Reference Material
SAP Familiarisation Guide
SAP Navigation Assistance

SAP Quick Reference Guide

Provides transaction codes and description

SAP Table Structure Overview

Course Agenda
Financial Accounting General Ledger Bank Accounting House Banks Accounts Receivable Accounts Payable Bank Accounting Electronic Statements Asset Accounting New GL Online Document Splitting Integration with Other Modules Case Studies Day 1 Day 1/2 Day 2 Day 2 Day 3 Day 3 Day 4 Day 4 Day 5 Day 5
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How This Course Fits in ADM

Where does the course fit in Accenture Delivery Method (ADM) for SAP?
https://methodology.accenture.com/finder/Scenarios/homepage/m_accentured eliverymethods.asp#sap_group.xml

3100 Design Application

Course Overview (1 of 5)
Financial Accounting
Overview

General Ledger
General Ledger Master Data Enterprise Structure General Ledger Business Transactions & Open and Cleared Items General Ledger Period End Closing & Reporting

Bank Accounting
House Bank/s
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Course Overview (2 of 5)
Accounts Receivable
Key Concepts Organisation Structure Master Data Configuration Business Transactions Reporting and Conversion Tips

Course Overview (3 of 5)
Accounts Payable
Overview Master Data Invoice Processing Payment Processing Reporting and Conversion Tips Withholding Tax

Bank Accounting
Electronic Bank Statement
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Course Overview (4 of 5)
Asset Accounting
Key Concepts & Organisation Structure Master Data Business Transactions Period End Closing & Reporting

New GL Online Document Splitting

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Course Overview (5 of 5)
Integration with Other Modules
Overview Integration with Material Management (MM) Integration with Sales and Distribution (SD) Integration with Controlling (CO)

Case Studies Course Closing

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Agenda Day 1
Course Introduction Financial Accounting General Ledger Master Data Enterprise Structure General Ledger Business Transactions & Open and Cleared Items

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SAP Solution Map

Source: SAP AC010: Financial Accounting & Reporting

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FI and Statutory Reporting

What is Financial Accounting (FI)?
The module in SAP used to support financial statutory reporting of legal entities

What is included in statutory reporting?

Balance sheet reports the Assets, Liabilities and Equity (value) of a company Profit and loss statement reports revenue, expenditure and profit/loss made year to date. At the end of a fiscal year all accounts in the P&L are reset to zero with the profit/loss transferred to equity in the balance sheet Tax Reports BAS statements Other reports include Company cash flow
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Financial Accounting (FI) vs. Controlling (CO)

What is the FI module used for?
FI is used for reporting a companys financial position and activity to statutory bodies and other external parties
For example, Company Balance Sheet (B/S), Profit and Loss (P&L) and tax reporting FI

What is the CO module used for?

CO is used for internal company reporting (e.g., showing what areas/departments within the company are making money and where the money is being spent (controlling expenditure)).
For example, Department expenditure actual vs. budget CO 16

Financial Accounting (FI) vs. Controlling (CO) (cont.)

Legal requirements dictate content, format and structure of reports in FI The content, format and structure of CO reports are determined by the company All financial reporting must adhere to standard Accounting practices and principles

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General Ledger and Sub Ledgers (1 of 3)

The general ledger is a list of account balances for a specific company. It is used to produce legal financial statements and other statutory reports. All accounting transactions relevant to a company are recorded in the General Ledger; then, if applicable, P&L transactions are posted through to CO. Where it is not practical to list all accounts of a specific category in the GL, e.g., customers, they are totalled and rolled up into one account (reconciliation account). The list of customer accounts (AR) is then a sub ledger of the general ledger. Other sub ledgers are vendors (AP), fixed assets, material stock balances, work orders and capital projects.
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General Ledger and Sub Ledgers (2 of 3)

Transactions posted to sub ledgers are automatically rolled up into the General Ledger reconciliation accounts Customer (AR) and vendor (AP) reconciliation accounts cannot be posted to directly. All other reconciliation accounts need to be set up as post automatically only All transactions from other modules that have a financial impact are integrated with the FI and CO modules; e.g., Material Management - goods receipt

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General Ledger and Sub Ledgers (3 of 3)

GL and Sub Ledgers: Reconciliation Account
Sub Ledger General Ledger

Accounts Payable

Vendor No
e.g., 70042 XYZ Ltd

A/P Reconciliation Account

e.g., 211000 A/P Trade 3rd Party

Manage accounting data for vendor/supplier

Accounts Receivable

Customer No
e.g., 50033 ABC Holding

A/R Reconciliation Accounts

e.g., 113000 A/R Trade

Manage accounting data for customer

Asset Accounting

Asset No
e.g., 5022 Welding machine

Asset Reconciliation Accounts

e.g., 131003 Fixed Asset Machinery 138003 Accumulated Dep. Machinery

Manage entire lifetime of assets and depreciation Detailed information about vendor/customer/asset

Balance summary per account Financial Statement

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Example: FI Integration
FI Integration Example Purchase to Pay
Mtrl Resource Planning Purchase Requisition Purchase Order Goods Receipt Invoice Verification Payment

Module impacted

PP

Material Management Accounts Payable General Ledger Project System

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History of SAP in the Marketplace

Business Requirements
Internal Business Process Focus Inter-Enterprise Co-operation
Shared Business Scenarios

Replace

Leverage
Efficiency & Control
Client Server Architecture

Strategic Value
Enterprise Services Architecture

mySAP ERP

SAP R/3

Automation
Mainframe Architecture

Adaptable Business

SAP R/2

Integrated Business Processes

Advancement in Technology

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Changes to SAP Financials in mySAP ERP with New GL

Classic GL

New GL

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Classic GL vs. New GL

SAPs R/3 Enterprise GL is now called Classic GL Both Classic and New GL are available to our clients
You will have to be familiar with both of them

Throughout this course, we will point out New GL functionality

Core concepts of Enterprise Structure, Chart of Accounts, AR, AP, and Banking have not changed.

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SAP Menu
We can add new nodes through the configuration (for example, for customized reports)

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SAP Configuration
SAP Configuration Implementation Guide (SPRO)

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System Walkthrough 1.1 SAP Configuration

Refer to System Walkthrough 1.1 SAP Configuration in your Faculty Guide.
Navigation for FI transactions within SAP Easy Access Menu and Implementation Guide (SPRO) Structure of various transactions within the FI menu tree, transaction codes, IMG keys Login, use of icons, and menus
Refer to SAP Familiarisation Guide.doc, as needed

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Questions

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Agenda Day 1
Course Introduction Financial Accounting General Ledger Master Data Enterprise Structure General Ledger Business Transactions & Open and Cleared Items

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Core Concept s
Chart of Accounts
Sometimes referred to as the what Describes the nature of an account Examples: Sales, Consulting Expense, Accounts Receivable

Enterprise Structure
Sometimes referred to as the where Describes where in the enterprise a transaction occurred Examples: Accentures OGs, SI&T, etc. Use multiple objects for different views (more later!!)

Together they provide the details required to meet the reporting requirements of the Enterprise.
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Company Code: Basis of Enterprise Structure

Company code represents a legal entity of the organisation. Configure one company code for each legal entity. Financial statements and statutory reporting (B/S, P&L, taxation reporting, etc.) are produced per company code SAP company code configuration includes:
Defining the company code, an alphanumeric field of 4 characters (for example, A001, 0700) Assigning country, currency, language, chart of accounts, fiscal year, tax procedure, posting period variant & field status variant
Note: Company configuration is only required if consolidations is being used.
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General Ledger Master Data

Chart of Accounts Account Groups Retained Earnings Field Status Groups GL Master Data and Maintenance
Account Groups Field Status Groups Account Currency Tax Category Reconciliation Account Line item Display Open Item Management Automatic Posting Sort Key

GL Account Maintenance FI Document Structure FI Document Header FI Document Line Items Document Number Range Tolerance Groups

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Chart of Accounts (1 of 4)
The Chart of Accounts (COA) is a list of all accounts used in the General Ledger; i.e., B/S and P&L accounts At a minimum the COA must have the accounts required to support the statutory reporting requirements and standard account practices. More accounts can be added for more detail and control The COA is assigned to company code in company code parameters configuration Accounts are only to represent the what not the where and what. The where is captured in the Enterprise Structure.
For example, an account for maintenance labour is incorrect. Account for labour is correct.
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Chart of Accounts (2 of 4)
One chart of accounts can be used for > 1 company code.
If an Organisation has multiple company codes, it is recommended that each company use the same COA; i.e., a standard COA. It ensures apples are being compared to apples when external and internal company consolidated reports are created. The New GL functionality allows only one COA.

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Chart of Accounts (3 of 4)
Typical account structure
C G1 G2 N N N

C Account class: 1 = Assets 2 = Liabilities 3 = Equities 4 = Sales 5 = Cost of Sales 6 = Expense, etc. G1 Account group, a breakdown of each account class (1, 2, 3, 4, etc.)

G2 Subgroup, a breakdown of each account group (1, 2, 3, 4, etc.)

NNN sequential number
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Chart of Accounts (4 of 4)
Balance Sheet and Profit & Loss There are two types of accounts in the GL master record: Balance Sheet accounts and P & L Statement accounts. These two types of accounts are treated differently in the closing procedure:
For balance sheet accounts, the balance is carried forward to the same account. Balance Sheet represents the Organisation financial data at any given time; i.e., accumulative figure For P & L statement accounts, the balance is carried forward to a retained earnings account and the P & L statement is set to zero. Profit & Loss represents financial data for a certain period. 36

Account Group
Account groups are used to simplify report design and other processing. Define Account Group - OBD4
IMG Path: General Ledger Accounting>GL Accounts>Master Records>Preparations> Define Account Group

Account Group is defined per Chart of Account

Account range restriction can be defined or left blank

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Retained Earning Account

Retained earnings account is assigned to each P&L account by specifying a P&L statement account type in the chart of accounts area of each P&L account At the end of a fiscal year, the system carries forward the balance of the P&L account to the retained earnings account. You can define one or more P&L statement account types per chart of accounts and assign them to retained earnings accounts Note: It is chart of accounts dependent
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Field Status Group

Not all GL accounts require the same information to be collected for business transactions Configuration of field status groups determines which fields are populated for which accounts Screen layouts are the screens that users will see with selected fields available for use. Different GL accounts may need a certain field that another set of accounts requires. Determines the screen layout for document entry

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Field Status Group (cont.)

Fields can have the following statuses:
Optional entry you can enter data in the field Mandatory entry you must enter data in the field Suppressed the field does not appear on the screen

Use
Enter the field status group in the master record of a GL account. When you enter a document, the definitions stored for the group are effective

Dependencies
The field status when you create a document also depends on the posting key The field status groups available are those grouped together in a field status variant and assigned to your company code
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GL Master Data Creation and Maintenance

GL accounts are split into two levels: Chart of Accounts level and Company Code level Chart of Accounts level holds information that is valid for all company codes assigned to the Chart of Accounts while company code level setup is only applicable for the company code Chart of Accounts level: Account Number and Description B/S or P& L account Account Group
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GL Master Data Creation and Maintenance (cont.)

Company Code level: Account Group Field Status Group Account Currency Tax Category Reconciliation account Line Item Display Open Item Management Automatic Posting Sort Key GL accounts can only be used by company codes where the company code view has been created

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GL Master Data (1 of 6)
Account group: Validates the number range and determines the screen layout (which fields are mandatory/optional/suppressed) when creating a GL account Field status group: Determines the screen layout (which fields are mandatory/optional/suppressed) when the account is used in a transaction

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GL Master Data (2 of 6)
Account currency: Determines allowable currency for the account
Local Account can be posted to in any currencies. Foreign amounts that are posted are converted to local currency Foreign Account can be posted to in ONLY the nominated foreign currency Balance in Local Currency determines whether a foreign exchange gain or loss will be posted when clearing in different currencies (must be an open item-managed account). Transaction figures will only be kept in local currency for the account that has this setting on
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GL Master Data (3 of 6)
Tax category: Determines allowable tax code for the account
Can be specific tax code or can be group of tax codes; for example,
S1 account should be posted with tax code S1 (Note: S1 is configurable) + only output tax allowed (tax on goods sold; i.e., assign to revenue accts) - only input tax allowed (tax on goods bought; i.e., assign to expense accounts) * all tax types allowed

Posting without tax allowed option

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GL Master Data (4 of 6)
Reconciliation account: Defines it as roll-up account from either AR, AP, or asset sub ledgers and prevents it being posted to directly Line item display: Allows the individual entries posted to the account to be displayed rather than just the account balance
System allows this setting to be changed; however, line items will only be available for documents posted when the line item display is checked

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GL Master Data (5 of 6)
Open item management: Used to help with reconciling an account balance. Accounts with this option have each entry flagged as either open or cleared item. Cleared items are a group of debit and credit entries that have been linked together as their total is zero. All clearing accounts need open item management switched on; e.g., bank clearing
As long as the account has any balance; i.e., has some accounting postings to it, system does not allow this setup to be changed Only applicable to balance sheet accounts Line item display must also be activated on the account Cannot be a reconciliation account 47

GL Master Data (6 of 6)
Automatic posting: Accounts with this option could not be directly posted to that the postings should be generated automatically from sub-modules; i.e., reconciliation accounts Supplement for automatic postings: Indicates line items that are generated automatically by the system for this account can be supplemented manually Sort key: Determine default entries in the Assignment field for the account line items for additional reference/informational purpose
For example, posting date, document date
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GL Accounts Maintenance
GL accounts can be blocked to prevent any journals being posted to it. It can be unblocked later on, if necessary - For example, conversion accounts GL Mark for deletion is the flag used by the archiving run to determine which accounts are to be removed. If the account to be marked for deletion is a balance sheet account, it MUST have a zero balance Blocking and mark for deletion can be set at the either the company code or COA levels
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FI Document Structure
Every transaction is recorded in at least one FI document. The document will have unique number per fiscal year - The document number range is set up in the configuration as internally or externally/user defined - External numbering is not widely used because users need to keep track of the last number outside the system. Can be used if it is desirable to have intelligent numbering
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FI Document Structure (cont.)

FI document consists of header and line items
Document header General data applicable to entire document Document line item Debits and credits Posted journal will have balanced debit and credit; i.e., debit amount = credit amount Max 999 lines
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Note: There are other documents in SAP; e.g., CO document, MM document, SD document, etc. Each will have its own numbering and rules

FI Document Structure: Header

Document type:
Used to identify the type of transaction for the benefit of searching, reporting and analysis
Examples: DR
DZ KR KZ SA Customer Invoice Customer Payment Vendor Invoice Vendor Payment GL Journal

Document number ranges are assigned in configuration per doc type. Keep SAP standard where possible Can control the type of accounts that can be used with that document type
For example, prevent entering a vendor in customer invoice
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FI Document Structure: Header (cont.)

Posting date: Determines the posting period the transaction is posted to Document date: Identifies the date of the original document that is used as a basis of posting into the system; e.g., the invoice issue date

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FI Document Structure: Line Items

Posting key: Determines the following for line items:
If the line item is debit or credit Type of account that can be entered
D Debtors; i.e., customers K Creditors; i.e., vendors S General Ledger A Assets
Example:

Debit

01 21 40

Customer Invoice Vendor Credit Memo Debit GL

Customer Credit Memo Vendor Invoice Credit GL

M Materials

Credit 11 31 50

Layout of entry screen; i.e., which fields are optional, mandatory, suppressed
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FI Document Structure: Line Items (cont.)

Account: Indicates the account the entry is posted to (i.e., customer account, vendor account, GL account or asset number)

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Document Number Range

Accounting Document Number Range (FBN1)
IMG Path: Financial Accounting>Financial Accounting Global Settings> Document> Document Number Ranges> Overview

Number Ranges is year dependent User should manually specify the doc number if the External Numbering is checked Last FI document posted within the number range
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Tolerance Groups
In this activity, you predefine various amount limits for your employees with which you determine:
Maximum document amount the employee is authorized to post Maximum amount the employee can enter as a line item in a customer or vendor account Maximum cash discount percentage the employee can grant in a line item Maximum acceptable tolerance for payment differences for the employee
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Tolerance Groups (cont.)

Payment differences are posted automatically within certain tolerance groups. This way the system can post the difference by correcting the cash discount or by posting to a separate expense or revenue account In this respect you define:
The amounts or percentage rates up to which the system is to automatically post to a separate expense or revenue account if it is not possible to correct the cash discount or Up to which difference amounts the system is to correct the cash discount. In this case the cash discount is automatically increased or decreased by the difference. using tolerance groups. Note: The same rules usually apply to a group of employees, enter the values for employee groups. You can then enter amount limits and tolerances per employee group and company , so you can also additionally differentiate these settings by company code 58

System Walkthrough 1.2 Master Data

Refer to System Walkthrough 1.2 Master Data in your Faculty Guide.
GL Account Maintenance (FS00) Account Balance (FS10N) Account Line Item Display (FBL3N) Field Status Group (SPRO)

Account Group (OBD4)

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Account Balance
Account Balance FS10N

Double click on the cell to display the line items (this is only applicable if the account is managed per line item - refer to the GL master data setup)

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Account Line Item Display

Account Line Item Display FBL3N
Open and cleared indicators are only available for account managed as open item (refer to the GL master data setup) - Status column - Open items are in red & cleared items are in green

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Exercise 1.1 Create a GL Account

Refer to Exercise 1.1 Create a GL Account in your Participant Workbook
Your task is to create a GL account

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Exercise 1.2 Create a GL Account with Reference

Refer to Exercise 1.2 Create a GL Account with Reference in your Participant Workbook
Your task is to create a GL account with Reference

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Exercise 1.3 Change a GL Account

Refer to Exercise 1.3 Change a GL Account in your Participant Workbook
Your task is to change the description on an existing GL account

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Exercise 1.4 Configuration: Change Field Status

Refer to Exercise 1.4 Configuration: Change Field Status in your Participant Workbook
Your task is to modify the field status on an existing account

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Questions

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Agenda Day 1
Course Introduction Financial Accounting General Ledger Master Data Enterprise Structure General Ledger Business Transactions & Open and Cleared Items

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Enterprise Structure
Key Concepts and Organisation Structure
Company Code Business Area Cost Centre & Profit Centre Fiscal Year Variant Posting Period Variant Tax Procedure Reports New General Ledger Profit Centre New Segment fields General Ledger Extensions Parallel Accounting
Real Time Integration
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Company Code: A Review

The company code represents a legal entity of the Organisation. Configure one company code for each legal entity Financial statements and statutory reporting (B/S, P&L, taxation reporting, etc) are produced per company code SAP configuration includes:
Defining the company code, an alphanumeric field of 4 characters (for example, A001, 0700) Assigning: country, currency, language, chart of accounts, fiscal year, tax procedure, posting period variant & field status variant

Note: Company configuration is only required if consolidations is being used.

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Business Area
Used to break up a company code into mini-companies Financial reporting (B/S, P&L) can be produced per business area One business area can belong to >1 company code User-defined 4-digit alphanumeric field
Chart of Accounts CoCd 1 CoCd 2 CoCd 3

Business Area 1 e.g. Victoria

Business Area 2 e.g. NSW

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Sample Enterprise Structure 1

ABC Limited
Head Office Victoria Manufacturing Victoria Site New South Wales Site Western Australia Site

Company Code 1
Business Area Vic Business Area NSW Business Area WA

Company Code 2
Business Area Vic

Marketing & Trading Victoria Representative Office Singapore Representative Office

Freight Forwarder Victoria Branch New South Wales Branch Western Australia Branch

EC-CS Consolidation & Controlling Modules

Company Code 3 Company Code 4

Business Area Vic Business Area NSW Business Area WA

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Cost Centre
Cost Centre is an organisational unit within a company that is used to track where costs occurred within the Organisation (i.e., as a cost collector)
Cost Centre hierarchy needs to be defined in the system

The hierarchy represents cost Organisation structure of the company

If Profit Centre is implemented in the system, the Cost Centre is assigned to the Profit centre. Many cost centres can be assigned to the same profit centre. Part of Cost Controlling (CO) - Overhead Management

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Profit Centre
Profit Centre provides information to measure the profitability within the Organisation
Record cost/expense (from the Cost Centre or any other cost object), revenue, and B/S items Profit Centre structure/hierarchy is defined based on the company Organisation structure Profit Centre can go across company codes Part of Cost Controlling (CO) Profit Centre Accounting (Classic GL) or part of General Ledger (New GL) Note: Define Segment so that you can enter an associated segment in the master record of a profit Centre. The segment is then derived from the assigned Profit Centre during posting within New GL.
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Sample Enterprise Structure 2

ABC Limited
Victoria Head Office Manufacturing Marketing & Trading Freight Forwarder New South Wales Manufacturing Freight Forwarder Western Australia Manufacturing Freight Forwarder Singapore Marketing & Trading Company Code 1
Profit Centre Product A (setup in CO) Profit Centre Product B (setup in CO) Profit Centre Product C (setup in CO)

Classic GL

Company Code 2
Profit Centre Product A (setup in CO) Profit Centre Product B (setup in CO)

EC-CS Consolidation & Controlling Modules

Company Code 3
Profit Centre Product C (setup in CO)

Company Code 4
Profit Centre Product A (setup in CO) Profit Centre Product B (setup in CO) Profit Centre Product C (setup in CO)

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Enterprise Structure Example

Company Code Profit Centre Cost Centre
Controlling Area Company Code Profit Centre Hierarchy
G/A

ABC Ltd - AUS Brisbane

AUSTRALIA Profit Centre Hierarchy
Product

Melbourne

Product

Product

Cost Centre Hierarchy

G/A Unit Process X Segment 1

Brisbane CC Hierarchy

Unit Process Y

Unit Process Z

Segments*

Segment2
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* Segments will be covered in New GL section. Segments do not apply to Classic GL.

Fiscal Year Variant (1 of 3)

Fiscal Year
- Fiscal Year Variant Impacts how data is reported to regulatory,

authorities and shareholders. The fiscal year can be configured as a calendar year or user defined For example, Accentures fiscal year begins at 1st Sept A fiscal period can be calendar months or user defined SAP provides 4 special posting periods. These are for use during year end close. Each time the year end figures are reviewed, the adjustments can be posted into a new special period. The use of them is optional. They can only be posted to if the posting date falls in the last fiscal period Periods are closed in the system to prevent documents from being posted to an incorrect posting period after the period closing
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Fiscal Year Variant (2 of 3)

Maintain Fiscal Year Variant (OB29)
IMG Path: Financial Accounting>Finan cial Accounting Global Settings>Fiscal Year>Maintain Fiscal Year Variant

12 normal periods and 4 special periods

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Fiscal Year Variant (3 of 3)

Assign Company Code to Fiscal Year Variant (OB37)
IMG Path: Financial Accounting>Finan cial Accounting Global Settings>Fiscal Year> Assign Company Code to a Fiscal Year Variant

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Posting Period Variant

Posting Period
A function for controlling which accounting periods can be updated as new transactions are posted First we define the Variant for Open period posting and attach the same to the company code, one posting period can be attached to more than one company code Then we attach this variant to the period and year combination which are open for financial posting We can also assign the GL account numbers which will be available for posting during that period
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Posting Period Variant (cont.)

Posting Period (Screen Shot)
With variant we attach the account type for which posting period will be open, the GL account no., period and fiscal year

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Taxes
Tax Procedure Calculate and accurately book tax liabilities for sales and use or VAT type taxes in the GL at the time of GR or IR
Extended Tax Witholding will be covered in Accounts Payable on Day 3

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Tax Procedure
Tax configuration is setup at country level. One country is assigned to one Calculation Procedure
The tax procedure for Australia is TAXAU Calculation procedure consists of condition types i.e. types of tax applicable for the procedure
For example, GST output tax (selling goods), GST input tax (buying goods) Condition type is attached to Account key

Tax code identifies the tax types

Tax code is also setup at country level The tax code is user defined Typical configuration: create a tax code for each relevant G code in the BAS statement
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Tax Procedure (cont.)

The Tax code is linked to a tax account - The tax calculated by the tax procedure is posted to tax accounts in the GL through Account key in Tcode OB40 - The system derives the GL account from the tax types (e.g., output tax, input tax) and tax codes - Typically, we have 2 tax accounts; i.e., one for input tax, the other for output The tax base amount can be configured to be before or after discounts are applied
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Standard FICO Reports

One report that can be taken for GL account balances, Tcode S_PL0_86000030 is shown below.

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Taking Report Output

Output from report is shown below, based on profit centre

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Unified View of the New GL

The new GL creates a unified view of the GL and eliminates the need for many additional ledgers However, special ledgers and other tools can still be used, if required

Classic GL

New GL

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New GL Functionality
Profit centre as part of New GL New Segment fields General ledger extensions Parallel accounting Real time integration Online document splitting (covered later in this course)

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Profit Centre Integration with New GL

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New Segment Fields (1 of 5)

New Segment Account Assignment Object
Segment is a new account assignment object that you can use to segregate your financial position and performance Balanced books per segment can be created Segments are defined to provide financial information by line of business, or by geographical area or management area

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New Segment Fields (2 of 5)

Segment is a new cost object that can be used for segment reporting Segment information can be populated either manually or automatically
Assign segment field in the profit centre master data to derive segment automatically If profit centre master data is not used, custom derivation rules can be defined with BADIFAL_DERIVE_SEGMENT to derive segment automatically Manually update segment information at the time of the financial posting

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New Segment Fields (3 of 5)

It is recommended to populate segment field by assigning segments to profit centres

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New Segment Fields (4 of 5)

You cannot change segments in the Profit Centre master once theyre created and used Segments can be assigned in Profit Centre master data

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New Segment Fields (5 of 5)

To activate segments in the IMG:
Define segments Derive the segments Maintain the field status group in the FI accounts: The Segment field can be found in group Additional Accounts assignments Maintain the field Status of the corresponding posting key Maintain scenarios: The segmentations scenario have to be defined for the corresponding ledger

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Highlights and Key Functionality of ECC 5.0/6.0

Financials Financial Accounting Management Accounting Financial Supply Chain Management

Corporate Governance

New: General Ledger extensions:

Features:
Organisations can add dimensions to General Ledger as needed or as business evolves Extendible General Ledger that uses standard data structure Maintains existing functionality from your current General Ledger in SAP R/3 or R/3 Enterprise Benefits Quickly modify General Ledger to fit business needs Reduce requirements for technical migration or training Eliminates need to maintain separate special ledgers
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One Version of the Truth

Financials Financial Accounting Management Accounting Financial Supply Chain Management

Corporate Governance

New: Parallel Ledger

Features:
Provides additional functionality for parallel ledgers to support parallel accounting and to reduce costs Organisations can use an identical interface and identical functions to process all ledgers in the general ledger, as well as update ledgers individually or simultaneously Benefits: Reduces manual postings to individual ledgers Enables greater efficiency of accounting staff Document numbering improves internal control for managing parallel ledgers
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Parallel Ledgers
Any number of parallel ledgers Same user interface for all ledgers (data entry, functions, reporting) Almost the same functionality for all ledgers Online posting to multiple ledgers Postings per specific ledger Closing activities can be run in parallel ledgers simultaneously Standard reporting for multiple ledgers The use of parallel accounts is still supported within the Sanctioned Party List (SPL)

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Multiple Ledgers
One Leading ledger and multiple non-leading ledgers can be created in the client Features of leading ledger:
Leading Ledger represents the accounting policy and basic books of accounts of the company code Local/Parallel currencies and fiscal year of the leading ledger are adopted from the company code Leading ledger is the default ledger for all postings The leading ledger is based on the same accounting principle as that of the consolidated financial statement. It is integrated with all subsidiary ledgers and is updated in all company codes (if posting is not ledger specific)

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Multiple Ledgers (cont.)

Features of non-leading ledger:
Creation of non-leading ledgers is optional One or more non-leading ledgers may be created to:
Maintain books of accounts for a fiscal year different from company's code fiscal year Post reporting entries, revaluations, readjustments only to the non-leading ledger

Non-leading ledger can follow other the accounting principles/standards applicable for a company code For each ledger that you create, a ledger group of the same name is automatically created
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Ledger Configuration
Multiple ledgers one ledger is defined as leading ledger

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Currencies for the Leading Ledger

Define currencies of leading ledger
Specify the currencies to be applied in the leading ledger. You can make the following settings for each company code:
The local currency (as company code currency) is specified in the company code settings You can define one or two additional local currencies that you store per company code parallel to the first local currency

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Additional Local Currencies for Company Code

Additional local currencies for company code Change the Additional Local Currencies for Company Code view

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Non-Leading Ledger
Define and Activate Non-leading ledger
Activate the non-leading ledgers in the company code. Define additional currencies beyond that of the leading ledger. The first currency of a non-leading ledger is always the currency of the leading ledger. For the second and third currencies of a non-leading ledger, you can only use currency types that you have specified for the leading ledger Different fiscal year variant other than leading ledgers can be assigned to non-leading ledger. If you do not enter a fiscal year variant, the fiscal year variant of the company code is used automatically

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Assign Scenarios & Custom Fields to Ledgers

We assign to our ledgers the following based on our requirement:
Scenarios
Determines what fields in a ledger are updated when it receives posting from other application components

Custom Fields
Enables you add custom fields (that you have already defined) to the ledger

Versions
Enables you to make general version settings for the ledger that depend on the fiscal year. In the versions, you specify whether actual data is recorded, whether manual planning is allowed, and whether planning integration with Controlling is activated

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Activate Cost Of Sales Accounting

In Europe, all publicly-traded companies must submit their consolidated financial statements according to International Financial Reporting Standards (IFRS), some companies can choose to report under the Cost of Sales Method Cost of Sales Accounting
Identifies where costs originate in a company Identifies the economic reason for a particular expense Expenses are classified by functional area

Activating the Cost of Sales Accounting is an optional setting

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Activate Cost Of Sales Accounting (cont.)

Impacts for Cost of Sales Accounting
Cost of Sales Accounting must be activated Functional areas must be used to sort your operating expenses Settings to activate Cost of Sales are:
Define your functional areas Assign a functional area to the master data of the account assignment objects Derive functional areas for postings, and define substitutions Define the ledger for cost of sales

By activating Cost of Sales accounting, the functional areas are derived and updated in the ledger
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Ledger Group
While posting accounting document, ledger group determines which ledgers would get posted One or more ledgers can be added in the ledger group The system creates a ledger group for every ledger

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Ledger Group (cont.)

In the ledger group:
A single ledger has to be identified as representative ledger If the ledger group has leading ledger, then leading must always be defined as representative ledger If all the ledgers in the ledger group have a different fiscal year variant than that of the company code, you can designate any ledger as the representative ledger If on ledger in the ledger group has the same fiscal year variant as that of the company code, then that ledger must be defined as the representative ledger
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Parallel Accounting
In one entity, different accounting principles can be applicable so that need can be handled through Parallel accounting where we can create different accounting principles that are applicable to the entity Assign the accounting principle to the ledger group so that reports based on the principle can be taken

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Example: Parallel Ledgers Posting to a Specific Ledger Group

New transaction allows you to post an FI document to a specific ledger group
Example: post statutory adjustments for ledgers used to produce financial statements based upon different accounting principals
Enter GL Acct Document for Ledger Group

Use new Tcode FB50L to post to a specific ledger

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Document Splitting
Financials Financial Accounting Management Accounting Financial Supply Chain Management

Corporate Governance

New: Online splits

Features:
Allows Organisations to simplify the generation of financial statements and reports on segments or dimensions that are unique to their industry Documents are automatically balanced online by any chosen dimension

Benefits:
Supports transparency and fast closes Simplifies ability to report by industry-specific requirements Greater internal control when generating industry-specific financial statements
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Online Integration between FI and CO Modules

Financials Financial Accounting Management Accounting Financial Supply Chain Management

Corporate Governance

New: Real-time integration

Features:
Supports real-time integration of financial and management accounting in mySAP ERP Any postings from management accounting (e.g., cost centre allocations) are automatically reflected in the general ledger at the appropriate level of detail

Benefits
Eliminates need for separate reconciliation ledger Eliminates reconciliation processes between financial and managerial accounting Increases opportunity to close month end books faster
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Example Classic GL Versus New GL

New GL
Classic GL

Note: The PCA tables are no longer used with the New GL; therefore, the PCA reports are not available You may need to create some custom reports if the Profit Centre reporting in the GL is not sufficient
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System Walkthrough 1.3 Key Concept & Organisation Structure

Refer to System Walkthrough 1.3 Key Concept & Organisation Structure in your Faculty Guide.
FI Document Display (FB03) Open & Close Posting Period (OB52) Company Code (OBY6) Maintain Fiscal Year Variant (OB29)

Assign Company Code to Fiscal Year Variant (OB37)

Accounting Document Number Range (FBN1)
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Questions

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Agenda Day 1
Course Introduction Financial Accounting General Ledger Master Data Enterprise Structure General Ledger Business Transactions & Open and Cleared Items

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General Ledger Business Transactions & Open and Cleared Items

Document Posting
Direct Automatic Recurring Post with Reference Account Assignment Templates Validation Substitution Park Reverse Re-set Open Items

Maintain Exchange Rates Open and Cleared Items

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FI Document Posting
FI Document Posting
Once the document is posted, the system only allows limited fields to be changed Posting Date, Document type, Currency, Exchange Rate, Posting Key, Accounts, Amount, Cost object cannot be changed Reference, Assignment, Text can be changed A document posting may update multiple parts of SAP Financials New GL documents can post to one or multiple ledgers Examples: Classic GL FI & PCA, New GL parallel ledgers An error message will not permit posting; the user must stop A warning message will allow the user to still proceed by pressing Enter.
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FI Document Posting (cont.)

Direct posting:
Directly posted in GL Can only be done to accounts without Automatic Entry option Document type SA, Tcode FB50/FB01 E.g., tax adjustment posting, bank reconciliation

Automatic posting:
From sub-ledger or other modules For accounts with Automatic Entry setup in the master data For example, depreciation (from Asset Management), vendor invoice (from MM)
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FI Document Posting Direct Posting with Template

Recurring entry (Tcode F.14) For posting the same journal into the system (same posting keys, accounts, and amount) Scheduled to run on certain date or periodically for the certain period of time E.g., amortization journal, loan repayment journal, rental payment
Post with reference (Tcode F-01) System will auto populate the fields according to the reference document; i.e., another FI document that has already been posted
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FI Document Posting Direct Posting with Template (cont.)

Account assignment model (Tcode FKMT) Journal template that is created and stored in the system. User selects the account assignment upon posting The account assignment does not need to be balanced. Checking will only be done by the system at document posting

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FI Document Posting Validation

Validation can be set up in the configuration where users should enter certain value(s) for certain kind of posting Set in the configuration using Tcode OB28 Help control data integrity If the validation criteria are not met, error or warning messages could be set up Validation examples:
For document type KR, reference field at the document header should be populated For posting in local currency, only payment term XXX could be used GL account xxxxxx could only be posted to cost centre ABC
Question: What is the difference between warning and error message?
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FI Document Posting Substitution

Substitution is to replace one value with another automatically upon document posting Set in the configuration using Tcode OBBH Help control data integrity Performed before validation; i.e., the values are substituted first and then validated Has no messages Transparent to the users Substitution examples:
All postings to cost centre A in company code 0100 need to be booked to cost centre B
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Other Transactions (1 of 3)
Park document Park transaction can be used if the accounting document is to be saved, but it is not desirable to post the document yet; e.g., the document needs to be reviewed by a supervisor, complete supporting document has not been received yet, etc. Park document does not update GL until the document is released If park facilities is utilized, checking of park document list should be included in the month end activities

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Other Transactions (2 of 3)
Reverse document (Tcode FB08) System will cancel the accounting document; i.e., generate opposite entries for the items Reversal will clear accounts that are managed as open items Reversal cannot be undone Reversal in FI can only be done if the document
Contains no cleared items Was posted directly from Financial Accounting (documents that were posted from other modules such as MM or SD need to be cancelled/reversed in the originated module) All entered values (such as cost centre and tax code) are still valid 124

Other Transactions (3 of 3)
Reverse document (cont.) Reversal Reason
Must be entered Control whether the reversal date is allowed to be different from the original posting date Defined in the configuration

Reset open item (Tcode FBRA) - Breaking the grouping between cleared items and clearing document - System does not allow cleared items to be reversed until the clearing is reset - Use Reset and reverse option to break the link and reverse the clearing document

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Support of Multiple Currencies

Maintain Exchange Rate (Tcode OB08)
There could be more than one valid exchange rate in the system for different purposes; i.e., accounting, tax reporting, costing Accounting will use exchange rate type M for translating document currency (i.e., currency specified at the document header) to local currency (i.e., currency specified at company code definition)
Exchange rate type
Validity date

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Maintain Exchange Rate

Below is the print shot that shows the exchange rate, which is picked from Tcode OB08 table; i.e., 1 USD = 44 INR

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Setting Accounts for Open Item Management

Open and Cleared Items
SAP provides functionality to link and match one item to another (i.e., customer invoice with payment, vendor invoice with payment, invoice with credit memo) to help manage account reconciliation Open items: unfinished transactions. Open items need to be matched/cleared against a clearing document to be settled and become cleared items
Are line items in an account that have not be grouped with any other line item. E.g., an invoice needs payment to be completed open items in the system in this case indicate unpaid invoice or payment that has not been applied to any invoices
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Setting Accounts for Open Item Management (cont.)

Cleared items: the transactions are completed.
Cleared items are a group of debit and credit line items in an account that have been linked together and their total is zero The entries are grouped by the clearing document number Clearing can be done manually by user selection or automatically as set up in the configuration

All clearing and provision accounts should have the open item management flag turned on in the GL account master data
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System Walkthrough 1.4 Business Transactions

Refer to System Walkthrough 1.4 Business Transactions in your Faculty Guide.
FI Document Posting (FB50) Display Document (FB03) Change Document (FB02) Display Changes to FI Document (FB03) Park and Release Document (F-65 FBV0) Reverse Document (FB08) Post with Reference (FB01) Account Assignment Model: Create (FKMT) and Create Journal (F-02) Configuration: Create document header validation (OB28) Maintain Exchange Rate (OB08)
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Create Document Header Validation (OB28)

IMG Path: Financial Accounting Global Settings>Document>Document Header> Validations in Accounting Document
Validation is assigned to company code Can be 1 Header validation 2 Line item validation 3 Both

Needs to be activated; i.e., status = 1 Double click on the validation cell to display the validation rule.
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Create Document Header Validation (OB28) (cont.)

Document header validation is created under this node One validation can have more than one step Line item validation is created under this node

If

Then

Else (if the check is not satisfied)

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Exercise 1.5 Post FI Document

Refer to Exercise 1.5 Post FI Document in your Participant Workbook
Your task is to post a document to correct an error in a previous posting

133

Exercise 1.6 Change FI Document

Refer to Exercise 1.6 Change FI Document in your Participant Workbook
Your task is to change an FI document

134

Exercise 1.7 Park FI Document

Refer to Exercise 1.7 Park FI Document in your Participant Workbook
Your task is to enter a journal for an account and park the document

135

Exercise 1.8 Post Parked Document

Refer to Exercise 1.8 Post Parked Document in your Participant Workbook
Your task is to review and post parked documents

136

Exercise 1.9 Reverse Document

Refer to Exercise 1.9 Reverse Document in your Participant Workbook
Your task is to reverse a document that was entered twice in error

137

Exercise 1.10 Post with Reference

Refer to Exercise 1.10 Post with Reference in your Participant Workbook
Your task is to make a correction posting with reference to another document

138

Questions

139

Knowledge Check (1 of 3)
1. Define the following terms covered:
Company code Cost Centre Profit Centre Leading Ledger

140

Knowledge Check (2 of 3 )
2. True or False:
One leading ledger and one non-leading ledger can be created in the client. Segment is a new account assignment object that you can use to segregate your financial position and performance. Tax configuration is set up at company level.

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Knowledge Check (3 of 3)
3. Define Account Group. 4. Where do you predefine various amount limits for your employees? 5. Explain how to create a GL account. 6. Explain how to post a parked document and the reason for parked documents. 7. Describe at least one difference between Classic GL and New GL.
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End of Day 1 Q & A

143

End of Day 1 Lessons Learned

Use of Financial Accounting module and differences with Controlling module Master data elements in the General Ledger Organisation structure for the General Ledger Configurations related to Organisation structure and master data setup New GL functionality Different business transactions Open and cleared Items

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