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GL Account Creation - PowerPoint PPT Presentation


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Fitter Snacker Module 3 G/L Account Creation Fitter Snacker Configuration G/L Accounts

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fitter snacker module 3

Fitter Snacker Module 3

G/L Account Creation

g l accounts
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.
g l accounts4
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
g l account
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
master data
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
balance sheet accounts
Balance Sheet Accounts
  • Assets
    • What the firm owns, in various levels of liquidity:
      • Cash
      • Receivables
      • Inventory
      • Plant & Equipment
      • Real Estate
balance sheet accounts9
Balance Sheet Accounts
  • Liabilities
    • What the firm owes
      • Payables—payment for materials/services received on credit
      • Bank loans
balance sheet accounts10
Balance Sheet Accounts
  • Equity
    • The difference between total assets and total liabilities
    • Includes
      • Retained earnings
      • Net income on past periods

Assets = Liabilities + Equity

reconciliation accounts
Reconciliation Accounts
  • Reconciliation accounts are a special type of balance sheet account that record the total amount of accounts receivable and accounts payable:
    • 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
profit and loss p l accounts
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
profit and loss p l accounts13
Profit and Loss (P&L) Accounts
  • Contain an identifier for the retained earnings account
  • At the fiscal year end, the P&L accounts are ‘closed’ to the retained earnings account
g l master records contain
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
account groups
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
  • 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
account groups16
Account Groups

Financial accounting General ledger accounting

G/L accounts Master Records Preparations

Define Account Groups

field status groups and variants
Field Status Groups and Variants
  • 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).
field status setting
Field Status Setting

All 5 Account management settings are optional

corresponding g l account screen
Corresponding G/L Account Screen

All 5 Account management fields are displayed

field status setting20
Field Status Setting

Two account management settings are suppressed

corresponding g l account screen21
Corresponding G/L Account Screen

Only 3 Account management fields are displayed

field status groups and variants22
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
account currency
Account Currency
  • Account Currency
    • Currency that the account will use to record transactions
  • Only balances in local currency
    • This setting determines how transactions are handled if postings to this account are made in currencies other than the account currency
tax category
Tax Category
  • Determines whether the account is a tax account, or a tax-relevant account
open item management
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.
open item management26
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
line item display
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
sort key
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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