Fitter Snacker Module 3 - PowerPoint PPT Presentation

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Fitter Snacker Module 3

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  1. Fitter Snacker Module 3 G/L Account Creation

  2. Fitter Snacker Configuration

  3. 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.

  4. 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

  5. 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

  6. The procurement process

  7. 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

  8. Balance Sheet Accounts • Assets • What the firm owns, in various levels of liquidity: • Cash • Receivables • Inventory • Plant & Equipment • Real Estate

  9. Balance Sheet Accounts • Liabilities • What the firm owes • Payables—payment for materials/services received on credit • Bank loans

  10. Balance Sheet Accounts • Equity • The difference between total assets and total liabilities • Includes • Retained earnings • Net income on past periods Assets = Liabilities + Equity

  11. 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

  12. 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

  13. 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

  14. 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

  15. 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

  16. Account Groups Financial accounting General ledger accounting G/L accounts Master Records Preparations Define Account Groups

  17. 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).

  18. Field Status Setting All 5 Account management settings are optional

  19. Corresponding G/L Account Screen All 5 Account management fields are displayed

  20. Field Status Setting Two account management settings are suppressed

  21. Corresponding G/L Account Screen Only 3 Account management fields are displayed

  22. 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

  23. 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

  24. Tax Category • Determines whether the account is a tax account, or a tax-relevant account

  25. 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.

  26. 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

  27. The procurement process

  28. 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

  29. 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