134593367-sap-fi-ecc-6-0-bootcamp-day-1

Course ObjectivesProvide overview of SAP Financial Accounting (FI) functionalities and integration with other modulesIntroduce FI Organisation structure, master data, business transactions, and reportingProvide hands-on experience with basic FI business transactionsProvide hands-on experience with basic FI configurationShare SAP project experience

Agenda Day 1Course IntroductionFinancial AccountingGeneral Ledger Master DataEnterprise StructureGeneral Ledger Business Transactions & Open and Cleared Items

Course IntroductionGround RulesParticipate - Ask questions!Learn From Everyones CommentsPlease Turn Off Cellular PhonesHonor Time ScheduleRelax and Have Fun!Introduce YourselfName, Operating Group, LocationYour SAP FI Bootcamp Objective(s)

Reference MaterialReference MaterialSAP Familiarisation GuideSAP Navigation AssistanceSAP Quick Reference GuideProvides transaction codes and descriptionSAP Table Structure Overview

Course AgendaFinancial AccountingDay 1General LedgerDay 1/2Bank Accounting House BanksDay 2Accounts ReceivableDay 2Accounts PayableDay 3Bank Accounting Electronic StatementsDay 3Asset AccountingDay 4New GL Online Document SplittingDay 4Integration with Other ModulesDay 5Case StudiesDay 5

How This Course Fits in ADMWhere does the course fit in Accenture Delivery Method (ADM) for SAP?https://methodology.accenture.com/finder/Scenarios/homepage/m_accenturedeliverymethods.asp#sap_group.xml

Course Overview (1 of 5)Financial AccountingOverviewGeneral LedgerGeneral Ledger Master DataEnterprise StructureGeneral Ledger Business Transactions & Open and Cleared ItemsGeneral Ledger Period End Closing & ReportingBank Accounting House Bank/s

Course Overview (2 of 5)Accounts ReceivableKey ConceptsOrganisation StructureMaster DataConfigurationBusiness TransactionsReporting and Conversion Tips

Course Overview (3 of 5)Accounts Payable OverviewMaster DataInvoice ProcessingPayment ProcessingReporting and Conversion TipsWithholding TaxBank Accounting Electronic Bank Statement

Course Overview (4 of 5)Asset Accounting Key Concepts & Organisation StructureMaster DataBusiness TransactionsPeriod End Closing & ReportingNew GL Online Document Splitting

Course Overview (5 of 5)Integration with Other ModulesOverviewIntegration with Material Management (MM)Integration with Sales and Distribution (SD)Integration with Controlling (CO)Case StudiesCourse Closing

SAP Solution MapSource: SAP AC010: Financial Accounting & Reporting

FI and Statutory ReportingWhat is Financial Accounting (FI)? The module in SAP used to support financial statutory reporting of legal entitiesWhat is included in statutory reporting?Balance sheet reports the Assets, Liabilities and Equity (value) of a companyProfit 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 sheetTax Reports BAS statements Other reports include Company cash flow

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 partiesFor example, Company Balance Sheet (B/S), Profit and Loss (P&L) and tax reporting FIWhat 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

Financial Accounting (FI) vs. Controlling (CO) (cont.)Legal requirements dictate content, format and structure of reports in FIThe content, format and structure of CO reports are determined by the companyAll financial reporting must adhere to standard Accounting practices and principles

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.

General Ledger and Sub Ledgers (2 of 3)Transactions posted to sub ledgers are automatically rolled up into the General Ledger reconciliation accountsCustomer (AR) and vendor (AP) reconciliation accounts cannot be posted to directly. All other reconciliation accounts need to be set up as post automatically onlyAll transactions from other modules that have a financial impact are integrated with the FI and CO modules; e.g., Material Management - goods receipt

General Ledger and Sub Ledgers (3 of 3)GL and Sub Ledgers: Reconciliation Account

Accounts PayableAccounts ReceivableAsset AccountingManage entire lifetime of assets and depreciationManage accounting data for customerManage accounting data for vendor/supplierSub LedgerGeneral LedgerVendor Noe.g., 70042 XYZ Ltd A/P Reconciliation AccountA/R Reconciliation AccountsCustomer Noe.g., 50033 ABC HoldingAsset Noe.g., 5022 Welding machinee.g., 211000 A/P Trade 3rd Party Detailed information about vendor/customer/assete.g., 113000 A/R Tradee.g., 131003 Fixed Asset Machinery 138003 Accumulated Dep. MachineryBalance summary per account Financial StatementAsset Reconciliation Accounts

Example: FI IntegrationFI Integration Example Purchase to Pay

Goods ReceiptPurchase OrderInvoice VerificationMaterial ManagementAccounts PayableModule impactedGeneral LedgerPurchase RequisitionProject SystemMtrl Resource PlanningPPPayment

History of SAP in the Marketplace

Changes to SAP Financials in mySAP ERP with New GLClassic GLNew GL

Classic GL vs. New GLSAPs 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 themThroughout this course, we will point out New GL functionality Core concepts of Enterprise Structure, Chart of Accounts, AR, AP, and Banking have not changed.

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

SAP ConfigurationSAP Configuration Implementation Guide (SPRO)

System Walkthrough 1.1 SAP ConfigurationRefer 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 menusRefer to SAP Familiarisation Guide.doc, as needed

Questions

Core ConceptsChart of AccountsSometimes referred to as the whatDescribes the nature of an accountExamples: Sales, Consulting Expense, Accounts ReceivableEnterprise StructureSometimes referred to as the whereDescribes where in the enterprise a transaction occurredExamples: 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.

Company Code: Basis of Enterprise StructureCompany 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 codeSAP 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.

General Ledger Master DataChart of AccountsAccount GroupsRetained EarningsField Status GroupsGL Master Data and MaintenanceAccount GroupsField Status GroupsAccount CurrencyTax CategoryReconciliation AccountLine item DisplayOpen Item ManagementAutomatic PostingSort KeyGL Account MaintenanceFI Document StructureFI Document HeaderFI Document Line ItemsDocument Number RangeTolerance Groups

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 accountsAt 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 controlThe COA is assigned to company code in company code parameters configurationAccounts 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.

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.

Chart of Accounts (3 of 4)Typical account structureC Account class: 1 = Assets2 = Liabilities3 = Equities4 = Sales5 = Cost of Sales6 = 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

Chart of Accounts (4 of 4)Balance Sheet and Profit & LossThere 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 figureFor 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.

Account GroupAccount groups are used to simplify report design and other processing.Define Account Group - OBD4IMG Path: General Ledger Accounting>GL Accounts>Master Records>Preparations> Define Account GroupAccount Group is defined per Chart of AccountAccount range restriction can be defined or left blank

Retained Earning AccountRetained 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 accountAt 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 accountsNote: It is chart of accounts dependent

Field Status GroupNot all GL accounts require the same information to be collected for business transactionsConfiguration of field status groups determines which fields are populated for which accountsScreen 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

Field Status Group (cont.)Fields can have the following statuses:Optional entry you can enter data in the fieldMandatory entry you must enter data in the fieldSuppressed the field does not appear on the screenUseEnter the field status group in the master record of a GL account. When you enter a document, the definitions stored for the group are effectiveDependenciesThe field status when you create a document also depends on the posting keyThe field status groups available are those grouped together in a field status variant and assigned to your company code

GL Master Data Creation and Maintenance GL accounts are split into two levels: Chart of Accounts level and Company Code levelChart 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 codeChart of Accounts level:Account Number and DescriptionB/S or P& L accountAccount Group

GL Master Data Creation and Maintenance (cont.)Company Code level:Account GroupField Status GroupAccount CurrencyTax CategoryReconciliation accountLine Item DisplayOpen Item ManagementAutomatic PostingSort KeyGL accounts can only be used by company codes where the company code view has been created

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 accountField status group: Determines the screen layout (which fields are mandatory/optional/suppressed) when the account is used in a transaction

GL Master Data (2 of 6)Account currency: Determines allowable currency for the accountLocal Account can be posted to in any currencies. Foreign amounts that are posted are converted to local currencyForeign Account can be posted to in ONLY the nominated foreign currencyBalance 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

GL Master Data (3 of 6)Tax category: Determines allowable tax code for the accountCan 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 allowedPosting without tax allowed option

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 directlyLine 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

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 clearingAs long as the account has any balance; i.e., has some accounting postings to it, system does not allow this setup to be changedOnly applicable to balance sheet accounts Line item display must also be activated on the accountCannot be a reconciliation account

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 accountsSupplement 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 purposeFor example, posting date, document date

GL Accounts MaintenanceGL accounts can be blocked to prevent any journals being posted to it. It can be unblocked later on, if necessary -For example, conversion accountsGL 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 balanceBlocking and mark for deletion can be set at the either the company code or COA levels

FI Document StructureEvery transaction is recorded in at least one FI document. The document will have unique number per fiscal yearThe document number range is set up in the configuration as internally or externally/user definedExternal 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

FI Document Structure (cont.)FI document consists of header and line items

Document headerGeneral data applicable toentire documentDocument line item Debits and creditsPosted journal will have balanced debit and credit; i.e., debit amount = credit amountMax 999 linesNote: 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: HeaderDocument type:Used to identify the type of transaction for the benefit of searching, reporting and analysis Examples: DR Customer InvoiceDZ Customer PaymentKR Vendor InvoiceKZ Vendor Payment SA GL JournalDocument number ranges are assigned in configuration per doc type. Keep SAP standard where possibleCan control the type of accounts that can be used with that document type For example, prevent entering a vendor in customer invoice

FI Document Structure: Header (cont.)Posting date: Determines the posting period the transaction is posted toDocument 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

FI Document Structure: Line ItemsPosting key: Determines the following for line items:If the line item is debit or creditType of account that can be enteredD Debtors; i.e., customersK Creditors; i.e., vendorsS General LedgerA AssetsM MaterialsLayout of entry screen; i.e., which fields are optional, mandatory, suppressedExample:Debit 01 Customer Invoice 21 Vendor Credit Memo 40 Debit GLCredit 11 Customer Credit Memo 31 Vendor Invoice 50 Credit GL

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)

Document Number RangeAccounting Document Number Range (FBN1)

IMG Path: Financial Accounting>Financial Accounting Global Settings> Document> Document Number Ranges> OverviewNumber Ranges is year dependentUser should manually specify the doc number if the External Numbering is checkedLast FI document posted within the number range

Tolerance GroupsIn this activity, you predefine various amount limits for your employees with which you determine:Maximum document amount the employee is authorized to postMaximum amount the employee can enter as a line item in a customer or vendor accountMaximum cash discount percentage the employee can grant in a line itemMaximum acceptable tolerance for payment differences for the employee

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 accountIn 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 orUp 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

System Walkthrough 1.2 Master DataRefer 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)

Account BalanceAccount Balance FS10N

Account Line Item DisplayAccount Line Item Display FBL3N

Exercise 1.1 Create a GL AccountRefer to Exercise 1.1 Create a GL Account in your Participant WorkbookYour task is to create a GL account

Exercise 1.2 Create a GL Account with ReferenceRefer to Exercise 1.2 Create a GL Account with Reference in your Participant WorkbookYour task is to create a GL account with Reference

Exercise 1.3 Change a GL AccountRefer to Exercise 1.3 Change a GL Account in your Participant WorkbookYour task is to change the description on an existing GL account

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

Questions

Enterprise Structure Key Concepts and Organisation StructureCompany CodeBusiness AreaCost Centre & Profit CentreFiscal Year Variant Posting Period VariantTax ProcedureReportsNew General Ledger Profit CentreNew Segment fieldsGeneral Ledger ExtensionsParallel AccountingReal Time Integration

Company Code: A ReviewThe company code represents a legal entity of the Organisation. Configure one company code for each legal entityFinancial statements and statutory reporting (B/S, P&L, taxation reporting, etc) are produced per company codeSAP 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.

Business AreaUsed to break up a company code into mini-companies Financial reporting (B/S, P&L) can be produced per business areaOne business area can belong to >1 company codeUser-defined 4-digit alphanumeric fieldChart of Accounts

Sample Enterprise Structure 1

ABC LimitedManufacturing Victoria Site New South Wales Site Western Australia SiteMarketing & TradingVictoria Representative OfficeSingapore Representative OfficeFreight ForwarderVictoria BranchNew South Wales BranchWestern Australia BranchHead OfficeVictoriaCompany Code 1Business Area VicBusiness Area NSWBusiness Area WACompany Code 2Business Area VicCompany Code 3Company Code 4Business Area VicBusiness Area NSWBusiness Area WAEC-CS Consolidation& Controlling Modules

Cost CentreCost 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 systemThe hierarchy represents cost Organisation structure of the companyIf 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

Profit CentreProfit 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 itemsProfit Centre structure/hierarchy is defined based on the company Organisation structureProfit Centre can go across company codesPart 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.

Sample Enterprise Structure 2

ABC LimitedNew South WalesManufacturingFreight ForwarderCompany Code 2Profit Centre Product A (setup in CO)Profit Centre Product B (setup in CO)Company Code 3Profit Centre Product C (setup in CO)EC-CS Consolidation& Controlling ModulesCompany Code 1Profit Centre Product A (setup in CO)Profit Centre Product B (setup in CO)Profit Centre Product C (setup in CO)VictoriaHead OfficeManufacturingMarketing & TradingFreight ForwarderWestern AustraliaManufacturingFreight ForwarderSingaporeMarketing & TradingCompany Code 4Profit Centre Product A (setup in CO)Profit Centre Product B (setup in CO)Profit Centre Product C (setup in CO)Classic GL

Enterprise Structure ExampleBrisbane CC Hierarchy

Unit Process Y

Product

Company CodeBrisbane

Melbourne Controlling AreaCost Centre HierarchyAUSTRALIA Profit Centre Hierarchy ABC Ltd - AUS

Product

Product

Profit Centre HierarchyUnit Process Z

Unit Process X

G/A

G/A

Company Code Profit Centre Cost CentreSegment 1Segments*Segment2 * 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 definedFor example, Accentures fiscal year begins at 1st SeptA fiscal period can be calendar months or user definedSAP 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 periodPeriods are closed in the system to prevent documents from being posted to an incorrect posting period after the period closing

Fiscal Year Variant (2 of 3)Maintain Fiscal Year Variant (OB29)IMG Path: Financial Accounting>Financial Accounting Global Settings>Fiscal Year>Maintain Fiscal Year Variant12 normal periods and 4 special periods

Fiscal Year Variant (3 of 3)Assign Company Code to Fiscal Year Variant (OB37)

IMG Path: Financial Accounting>Financial Accounting Global Settings>Fiscal Year> Assign Company Code to a Fiscal Year Variant

Posting Period VariantPosting Period A function for controlling which accounting periods can be updated as new transactions are postedFirst 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 postingWe can also assign the GL account numbers which will be available for posting during that period

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

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

Tax ProcedureTax configuration is setup at country level. One country is assigned to one Calculation ProcedureThe tax procedure for Australia is TAXAUCalculation procedure consists of condition types i.e. types of tax applicable for the procedureFor example, GST output tax (selling goods), GST input tax (buying goods)Condition type is attached to Account keyTax code identifies the tax typesTax code is also setup at country levelThe tax code is user defined Typical configuration: create a tax code for each relevant G code in the BAS statement

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 OB40The system derives the GL account from the tax types (e.g., output tax, input tax) and tax codesTypically, we have 2 tax accounts; i.e., one for input tax, the other for outputThe tax base amount can be configured to be before or after discounts are applied

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

Taking Report OutputOutput from report is shown below, based on profit centre

Unified View of the New GLThe 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 requiredClassic GLNew GL

New GL Functionality Profit centre as part of New GL New Segment fieldsGeneral ledger extensionsParallel accountingReal time integrationOnline document splitting (covered later in this course)

Profit Centre Integration with New GL

New Segment Fields (1 of 5) New Segment Account Assignment ObjectSegment is a new account assignment object that you can use to segregate your financial position and performanceBalanced books per segment can be createdSegments are defined to provide financial information by line of business, or by geographical area or management area

New Segment Fields (2 of 5)Segment is a new cost object that can be used for segment reportingSegment information can be populated either manually or automaticallyAssign segment field in the profit centre master data to derive segment automaticallyIf profit centre master data is not used, custom derivation rules can be defined with BADIFAL_DERIVE_SEGMENT to derive segment automaticallyManually update segment information at the time of the financial posting

New Segment Fields (3 of 5)It is recommended to populate segment field by assigning segments to profit centres

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

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

Highlights and Key Functionality of ECC 5.0/6.0 New: General Ledger extensions: Features:Organisations can add dimensions to General Ledger as needed or as business evolvesExtendible General Ledger that uses standard data structureMaintains 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

One Version of the Truth New: Parallel Ledger Features:Provides additional functionality for parallel ledgers to support parallel accounting and to reduce costsOrganisations 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 ledgersEnables greater efficiency of accounting staffDocument numbering improves internal control for managing parallel ledgersFinancialsFinancial AccountingManagement Accounting

Parallel LedgersAny number of parallel ledgers Same user interface for all ledgers (data entry, functions, reporting)Almost the same functionality for all ledgersOnline posting to multiple ledgersPostings per specific ledgerClosing activities can be run in parallel ledgers simultaneouslyStandard reporting for multiple ledgersThe use of parallel accounts is still supported within the Sanctioned Party List (SPL)

Multiple Ledgers One Leading ledger and multiple non-leading ledgers can be created in the clientFeatures of leading ledger:Leading Ledger represents the accounting policy and basic books of accounts of the company codeLocal/Parallel currencies and fiscal year of the leading ledger are adopted from the company codeLeading ledger is the default ledger for all postingsThe 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)

Multiple Ledgers (cont.)Features of non-leading ledger:Creation of non-leading ledgers is optionalOne or more non-leading ledgers may be created to:Maintain books of accounts for a fiscal year different from company's code fiscal yearPost reporting entries, revaluations, readjustments only to the non-leading ledgerNon-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

Ledger ConfigurationMultiple ledgers one ledger is defined as leading ledger

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 settingsYou can define one or two additional local currencies that you store per company code parallel to the first local currency

Additional Local Currencies for Company Code Additional local currencies for company codeChange the Additional Local Currencies for Company Code view

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 ledgerDifferent 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

Assign Scenarios & Custom Fields to Ledgers We assign to our ledgers the following based on our requirement:ScenariosDetermines what fields in a ledger are updated when it receives posting from other application componentsCustom FieldsEnables you add custom fields (that you have already defined) to the ledgerVersionsEnables 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

Activate Cost Of Sales AccountingIn 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 MethodCost of Sales AccountingIdentifies where costs originate in a companyIdentifies the economic reason for a particular expense Expenses are classified by functional areaActivating the Cost of Sales Accounting is an optional setting

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 expensesSettings to activate Cost of Sales are: Define your functional areasAssign a functional area to the master data of the account assignment objectsDerive functional areas for postings, and define substitutions Define the ledger for cost of salesBy activating Cost of Sales accounting, the functional areas are derived and updated in the ledger

Ledger Group While posting accounting document, ledger group determines which ledgers would get posted One or more ledgers can be added in the ledger groupThe system creates a ledger group for every ledger

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

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

Example: Parallel Ledgers Posting to a Specific Ledger GroupNew transaction allows you to post an FI document to a specific ledger groupExample: post statutory adjustments for ledgers used to produce financial statements based upon different accounting principalsEnter GL Acct Document for Ledger Group

Document Splitting New: Online splitsFeatures:Allows Organisations to simplify the generation of financial statements and reports on segments or dimensions that are unique to their industryDocuments are automatically balanced online by any chosen dimensionBenefits:Supports transparency and fast closesSimplifies ability to report by industry-specific requirementsGreater internal control when generating industry-specific financial statementsFinancialsFinancial AccountingManagement Accounting

Online Integration between FI and CO Modules New: Real-time integrationFeatures:Supports real-time integration of financial and management accounting in mySAP ERPAny postings from management accounting (e.g., cost centre allocations) are automatically reflected in the general ledger at the appropriate level of detail BenefitsEliminates need for separate reconciliation ledgerEliminates reconciliation processes between financial and managerial accountingIncreases opportunity to close month end books faster

FinancialsFinancial AccountingManagement Accounting

Example Classic GL Versus New GLNote: The PCA tables are no longer used with the New GL; therefore, the PCA reports are not availableYou may need to create some custom reports if the Profit Centre reporting in the GL is not sufficient

New GLClassic GL

System Walkthrough 1.3 Key Concept & Organisation StructureRefer 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)

Questions

General Ledger Business Transactions & Open and Cleared ItemsDocument PostingDirectAutomaticRecurringPost with ReferenceAccount Assignment TemplatesValidationSubstitutionParkReverseRe-set Open ItemsMaintain Exchange RatesOpen and Cleared Items

FI Document PostingFI Document PostingOnce the document is posted, the system only allows limited fields to be changedPosting Date, Document type, Currency, Exchange Rate, Posting Key, Accounts, Amount, Cost object cannot be changedReference, Assignment, Text can be changedA document posting may update multiple parts of SAP FinancialsNew GL documents can post to one or multiple ledgersExamples: Classic GL FI & PCA, New GL parallel ledgersAn error message will not permit posting; the user must stopA warning message will allow the user to still proceed by pressing Enter.

FI Document Posting (cont.)Direct posting:Directly posted in GLCan only be done to accounts without Automatic Entry optionDocument type SA, Tcode FB50/FB01E.g., tax adjustment posting, bank reconciliationAutomatic posting:From sub-ledger or other modulesFor accounts with Automatic Entry setup in the master dataFor example, depreciation (from Asset Management), vendor invoice (from MM)

FI Document Posting Direct Posting with TemplateRecurring 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 timeE.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

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 postingThe account assignment does not need to be balanced. Checking will only be done by the system at document posting

FI Document Posting ValidationValidation can be set up in the configuration where users should enter certain value(s) for certain kind of postingSet in the configuration using Tcode OB28Help control data integrityIf the validation criteria are not met, error or warning messages could be set upValidation examples:For document type KR, reference field at the document header should be populatedFor posting in local currency, only payment term XXX could be usedGL account xxxxxx could only be posted to cost centre ABCQuestion: What is the difference between warning and error message?

FI Document Posting SubstitutionSubstitution is to replace one value with another automatically upon document postingSet in the configuration using Tcode OBBHHelp control data integrityPerformed before validation; i.e., the values are substituted first and then validatedHas no messagesTransparent to the usersSubstitution examples:All postings to cost centre A in company code 0100 need to be booked to cost centre B

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 releasedIf park facilities is utilized, checking of park document list should be included in the month end activities

Other Transactions (2 of 3)Reverse document (Tcode FB08)System will cancel the accounting document; i.e., generate opposite entries for the itemsReversal will clear accounts that are managed as open itemsReversal cannot be undoneReversal in FI can only be done if the documentContains 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

Other Transactions (3 of 3)Reverse document (cont.)Reversal ReasonMust be entered Control whether the reversal date is allowed to be different from the original posting dateDefined in the configurationReset open item (Tcode FBRA)Breaking the grouping between cleared items and clearing documentSystem does not allow cleared items to be reversed until the clearing is resetUse Reset and reverse option to break the link and reverse the clearing document

Support of Multiple CurrenciesMaintain Exchange Rate (Tcode OB08)There could be more than one valid exchange rate in the system for different purposes; i.e., accounting, tax reporting, costingAccounting 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 typeValidity date

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

Setting Accounts for Open Item ManagementOpen and Cleared ItemsSAP 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 reconciliationOpen items: unfinished transactions. Open items need to be matched/cleared against a clearing document to be settled and become cleared itemsAre 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

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 configurationAll clearing and provision accounts should have the open item management flag turned on in the GL account master data

System Walkthrough 1.4 Business TransactionsRefer 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)

Create Document Header Validation (OB28)IMG Path: Financial Accounting Global Settings>Document>Document Header> Validations in Accounting DocumentValidation is assigned to company codeCan be 1 Header validation 2 Line item validation 3 BothNeeds to be activated; i.e., status = 1Double click on the validation cell to display the validation rule.

Create Document Header Validation (OB28) (cont.)One validation can have more than one stepDocument header validation is created under this nodeLine item validation is created under this nodeIfThenElse (if the check is not satisfied)

Exercise 1.5 Post FI DocumentRefer to Exercise 1.5 Post FI Document in your Participant WorkbookYour task is to post a document to correct an error in a previous posting

Exercise 1.6 Change FI DocumentRefer to Exercise 1.6 Change FI Document in your Participant WorkbookYour task is to change an FI document

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

Exercise 1.8 Post Parked DocumentRefer to Exercise 1.8 Post Parked Document in your Participant WorkbookYour task is to review and post parked documents

Exercise 1.9 Reverse DocumentRefer to Exercise 1.9 Reverse Document in your Participant WorkbookYour task is to reverse a document that was entered twice in error

Exercise 1.10 Post with ReferenceRefer to Exercise 1.10 Post with Reference in your Participant WorkbookYour task is to make a correction posting with reference to another document

Questions

Knowledge Check (1 of 3)Define the following terms covered:Company codeCost CentreProfit CentreLeading Ledger

Knowledge Check (2 of 3 )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.

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

End of Day 1 Q & A

End of Day 1 Lessons LearnedUse of Financial Accounting module and differences with Controlling moduleMaster data elements in the General LedgerOrganisation structure for the General LedgerConfigurations related to Organisation structure and master data setupNew GL functionalityDifferent business transactionsOpen and cleared Items

Note: Throughout these course materials, a generic course name (SAP FI ECC 6.0 Bootcamp) is used. These course materials, however, are used for the following myLearning course entries:SAP ACNINT FI ECC 6.0 Bootcamp (Z65402) for participants from mixed workforcesSAP ACNINT SWF FI ECC 6.0 Bootcamp (Z65590) for Solutions Workforce participants onlyKey Message(s):

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Key Message(s):Financial Accounting and Management Accounting are part of SAP integrated application and designed for management and reporting of GL (General Ledger), AR (Accounts Receivable), AP (Accounts Payable), and Assets.


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Key Message(s):Participants must understand the difference between R/3 and mySAP ERP. Also mention mySAP ERP contains the traditional ERP components in ECC (Enterprise Core Components).The slide shows some of the key focuses:R/2 was a mainframe system and focused on automating.R/3 increased control and gained efficiency and started focusing across processes and cooperating with other partners.mySAP ERP is the newest product and continues to move beyond.


Key Message(s):We need to emphasize that there are two different solutions Classic GL and New GL.The New GL is more integrated, with fewer specialized applications/tables.It allows us to accomplish the same thing in a different way generally better and faster.More online/real-time and less batch/month-end focused.You will encounter both solutions in your work.The benefits can be highlighted at a high level now and more detail later.


Key Message(s):Most configuration is the same, but some small differences occur in transaction codes or reports.Some functionality, such as parallel ledgers and online document splitting (covered later), is only in the New GL.


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Key Messages:Ensure that participants understand (at a high level) the role of the Chart of Accounts and the Enterprise Structure.Before getting too deep in the curriculum, it might help to emphasize how the two building blocks work together.Both of these concepts will be covered in more detail later.


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Additional Information:In ECC 6.0, Tcode FAGLB03 is used to view the GL balances, with New GL functionality being active.Key Message(s):

Additional Information:In ECC 6.0, Tcode FAGLL03 is used to view the GL line items, with New GL functionality being active.

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Additional Information:Key Message(s):We discussed company code earlier during the General Ledger Master Data topic. Lets review it again as we talk about enterprise structure.Note: Companies can have multiple legal entities.


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Key Message(s):This is a Classic GL example because profit centre is set up in CO. Profit centre in New GL will be covered later in this course.


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Additional Information:Key Message(s):The next set of slides will cover New GL functionality.


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Key Message(s):The Profit Centre field is now available within the New GL FI tables. It allows users to report legal entity and profit centres from the same set of tables.You may remember that in the Classic GL, there was a separate application called profit centre accounting, which had independent tables and was sometimes updated at different times then FI.Here is a screen print of the profit centre master record. Note the new field on the profit centre master called Segment. The segment is a key new piece of functionality in the New GL, which we will cover later in more detail.

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Key Message(s):WBS elements and Internal Orders are other cost objects that can be created.


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Key Message(s):Accounting principles represent accounting standards in mySAP ERP. They play an important role in connecting accounting standard-specific postings to the relevant ledger for currency valuation, asset postings, and manual accruals.Here, three accounting principles are defined.


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Key Message(s):Online document splitting will be covered in more detail later.


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Key Message(s):New GL functionality provides new transactions to enable ledger-specific posting.Tcodes include FB50L & FB01L.


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Key Message(s):Highlight the difference between warning and error messages. An error will not let the transaction proceed. A warning will allow the user to continue to the transaction.


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Key Message(s):Explain the use of multiple currencies on an FI document:Emphasize why we need to deal with exchange rates.Introduce transaction currency versus company code currency versus group currency.Allows reporting in multiple currencies to meet local and enterprise or group requirements.

Multi-currency must be explained before exchange rates We track three currencies in a document: transaction, local or company code currency, and group currency.Exchange rates are used to make conversions at the time of document entryAids in all types of reportingExample transaction: Canadian subsidiary of US Parent buys a product from the UKTransaction currency GBP, Local Currency Canadian $, Group Currency USD



Key Message(s):Some accounts are set for open item management; some are not. Example: Bank accounts are not open item managed.SAP standard reports generally suppress the display of cleared items assumes you will manage open items only.


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Key Message(s):Note to faculty: Refer to the Knowledge Checks section in the Faculty Guide for the answers to these review questions.






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Documents

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acce course overview

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bank accounting house

sap ac010

conversion tipscourse

accounts receivableday

accounts payableday