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Configuring the G/L Accounts. G/L Overview. If the transaction appears externally (FI), it’s recorded to the general ledger Via direct posting Via sub-ledger accounts (reconciliation accounts) Via settlements from internal accounting systems

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g l overview
G/L Overview
  • If the transaction appears externally (FI), it’s recorded to the general ledger
    • Via direct posting
    • Via sub-ledger accounts (reconciliation accounts)
    • Via settlements from internal accounting systems
  • It’s the complete, centralized, real-time record of all business transactions
g l overview1
G/L Overview
  • Accounting data is always complete and accurate
  • We can look at (in real time)
    • Detailed account information
    • Summarized account totals
    • Evaluations such as balance sheets and P/L statements
  • G/L accounts and cost accounting areas are updated automatically
financial master data
Financial Master Data
  • It’s data that lives for an extended period of time
    • G/L accounts
    • Customer (A/R) ledger
    • Vendor (A/P) ledger
financial transaction data
Financial Transaction Data
  • It’s short lived data that archived or removed after a period of time
    • Of course, we might archive to our DW or not archive it at all
    • G/L transactions
    • Payments
    • Cash transactions
g l account types 1
G/L Account Types (1)
  • They mimic accounting account types
    • Assets
      • At various levels of liquidity
    • Liabilities
      • At various levels of liquidity
    • Equity (retained earnings)
g l account types 2
G/L Account Types (2)
  • P & L accounts
    • Revenues
    • Expenses
      • SAP predefines comment expense categories
    • Contain a pointer to a “special” retained earnings account so that the P & L accounts can be closed to retained earnings
reconciliation accounts
Reconciliation Accounts
  • Recon accounts (payables and receivables)
  • Each sub-ledger is tied to a G/L reconciliation account
    • Both the sub-ledger and G/L account are always synchronized
g l master records contents
G/L Master Records (Contents)
  • Applicable COA
  • Company code
  • Account number and name
  • Account type
    • Balance sheet or P & L
  • Account group
    • Account groups must be created before G/L accounts can be created
account groups
Account Groups
  • They configure the behavior of G/L accounts
    • G/L accounts belonging to the same account groups work similarly
  • We typically create account groups for
    • Balance sheet accounts
    • P/L accounts
    • Recon accounts
  • The account groups already exist for the simulation
  • Use account groups to define the numeric range of accounts
configuring g l account groups 1
Configuring G/L Account Groups (1)
  • Select G/L Account group and click Field Status
  • Field Status groups are used by account groups and many other configurable SAP screens
    • They are used to configure whether a screen or field is hidden / optional / required /
configuring g l account groups 2
Configuring G/L Account Groups (2)
  • Account Groups or organized into sub groups
configuring g l account groups 3
Configuring G/L Account Groups (3)
  • And finally, select the optional and required fields
g l account currency
G/L Account Currency
  • The currency used to record GL transactions
  • Only balances in local crcy if set, forces accounts to be cleared in the local currency
    • GR / IR accounts for example
tax categories
Tax Categories
  • Think of taxes as one of two types
    • Input tax is used for tax paid on purchases
      • Input for production, for example
      • Usually paid to vendors or the govt.
    • Output tax is charged to customers on sales
      • Charted to customers by us and then paid to the government
  • Look at transaction code FTXP
open item accounting 1
Open Item Accounting (1)
  • “Open Item” accounts are those that require clearing
  • All accounting systems and ERP systems support it
  • An OPEN ITEM is a contractual or scheduled commitment that is not yet reflected in Financial Accounting but will lead to actual expenditures / receipts in the future, e.g. a purchase order that is not shipped in full will list those unshipped items as open items within the shipping invoice
open item accounting 2
Open Item Accounting (2)
  • Bank accounts are typically not cleared
  • Salary / Payroll accounts are cleared
  • GR / IR accounts are cleared
  • Vendor and customer accounts are automatically cleared (Open Item Management is enabled
the gr ir account
The GR/IR Account
  • 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 keys
Sort Keys
  • 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
g l accounts individual vs collective processing
G/L Accounts Individual vs. Collective Processing
  • Individual processing applies changes to a single (G/L) account
  • Collective processing applies changes to a range of accounts