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B.Madhusudhan Rao SAP FICO TRAINING -GL Accounting BASIC ACCOUNTING PRINCIPLES

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B.Madhusudhan Rao SAP FICO TRAINING -GL Accounting AccountingAccounting means they way it’s used to store the transactional data in a systematic way based upon Accounting Principles.

There are 2 types of Accounting methods are there.

1) Finance – Financial Accounting for External Reporting purpose2) Controlling – Managerial Accounting or Costing for Internal Reporting purpose.

Basic Accounting PrinciplesBasic accounting principles which are useful to draw the financial statements like Profit & Loss Account and Balance Sheet Statements

Classification of Accounts and Rules of Debit and CreditThe transactions are recorded on the basis of classification of accounts and rules pertain to Debit and Credit.

There are 3 Types of Accounting Principles are there to post the day to day transactions.

1) Personal Accounts2) Real Accounts3) Nominal Accounts

Personal AccountsTransactions relating to persons or firms are come under Personal Accounts

Accounting Rule: Debit is the Receiver and Credit is the Giver

Ex: Ramu Paid cash to Suresh.

Accounting entry:Suresh A/c Dr 10, 000/- To Ramu A/c Cr 10, 000/-

In this example Suresh’s Account will be “Debited” (Receiver)Similarly Ramu Account will be “Credited” (Giver).

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B.Madhusudhan Rao SAP FICO TRAINING -GL Accounting Real AccountsTransactions relating to Properties or assets come under Real Accounts.Accounting Rule: Debit what comes in and Credit what goes out.

Ex: Building Purchased for cash

Accounting entry:Building A/c Dr 5, 00, 000/- To Cash A/c Cr 5, 00, 000/-

Building Account will “Debited”, since it is coming into the businessCash account will be “Credited”, since it is going out of business.

Nominal AccountsTransactions relating to Expenses or losses and Incomes or gain come under Nominal Accounts.Accounting Rule: Debit all expenses and losses and Credit all revenues and gains.

Ex: Salaries Paid – Pertains to Expenses

Accounting entry:Salaries A/c Dr 2, 00, 000/- To Cash A/c Cr 2, 00, 000/-

Salaries Account will “Debited”, since it is nominal accountCash account will be “Credited”, since cash is going out of business.

Ex: Interest Received on Investments – Pertains to Income

Accounting entry:Cash A/c Dr 5 000/- To Interest A/c Cr 5, 000/-

Cash Account will “Debited”, since Cash is coming into business.Interest account will be “Credited”, since it is a nominal account.

Concept of Debit and Credit3

B.Madhusudhan Rao SAP FICO TRAINING -GL Accounting The words “Debit” and “Credit” no specific meaning. They are used only as Accounting Symbols.

In accounting Left Hand Side is called Debit and the Right Side is Called Credit.

Debit is used to denote a receiver or receiving account and Credit is used to denote a giver or giving account.

As such the rules of the Debit and Credit can be expressed as Followers.

Every transaction has a dual effect with one element receiving the benefit and the other element giving the benefit.

Some of the examples:S.no Transaction

Received Benefit - DR

Giving Benefit -CR

1 Purchased Raw Materials Raw Materials Cash

2 Sales Cash Goods3 Paid Salaries Salaries Cash 4 Discount Received Cash Discount5 Commission Paid Commission Cash

Below the Examples to understand the concept clearly.

1) Govind Commenced business with Cash Rs. 10,000/-

Entry: Cash A/c Dr 10,000/-(Real Account) – Debit what comes inCapital A/c Cr 10,000/-(Personal Account) – Credit the giver

2) Opened a Bank Account Rs. 5,000/-

Entry: Bank A/c Dr 5,000/-(Real Account) – Debit the receiverCash A/c Cr 5,000/-(Real Account) – Credit what goes out

3) Bought Goods from Raghav Rs.1000/-

Entry: Purchases A/c Dr 1,000/-(Real Account) – Debit what comes inRaghav A/c Cr 1,000/-(Personal Account) – Credit the giver

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B.Madhusudhan Rao SAP FICO TRAINING -GL Accounting

4) Sold Printer to Praveen on Credit Rs. 1,000/-

Entry: Praveen A/c Dr 1,000/-(Personal Account) – Debit the receiver Printer A/c Cr 1,000/-(Real Account) – Credit what goes out

5) Sold goods for Cash Rs. 400/-

Entry: Cash A/c Dr 400/-(Real Account) – Debit what comes inSales A/c Cr 400/-(Real Account) – Credit what goes out

6) Purchases Goods for cash from Vinay Rs.200/-

Entry: Purchase A/c Dr 200/-(Real Account) – Debit what comes inCash A/c Cr 200/-(Real Account) – Credit what goes out

7) Drew Cash from Bank Rs.500/-

Entry: Drawings A/c Dr 500/-(Personal Account) – Debit receiverCash A/c Cr 500/-(Real Account) – Credit what goes out

8) Paid rent to Land Lord Rs.250/-

Entry: Rent A/c Dr 250/-(Nominal Account) – Debit the ExpensesCash A/c Cr 250/-(Real Account) – Credit what goes out

9) Received cash from Praveen Rs.1,000/-

Entry: Cash A/c Dr 1,000/-(Real Account) – Debit what comes inPraveen A/c Cr 1,000/-(Personal Account) – Credit the giver

10) Took a loan from Shubha Rs.2,000/-

Entry: Cash A/c Dr 2,000/-(Real Account) – Debit what comes inShubha A/c Cr 2,000/-(Personal Account) – Credit the giver

11) Office equipment stolen Rs.500/-

Entry: Loss by theft A/c Dr 500/-(Nominal Account) – Debit the expensesEquipment A/c Cr 500/-(Real Account) – Credit what goes out

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GENERAL LEDGER ACCOUNTING

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B.Madhusudhan Rao SAP FICO TRAINING -GL Accounting INTRODUCTION

The FI (Financial Accounting) Module is geared for external reporting. It produces a Balance sheet (B/S) and Profit and Loss account (P&L), cash flow report. The B/S & P/L is required by management for monitoring its monthly and yearly performance. It is also required for statutory accounts, GAAP reporting and various other legal and tax requirements.

Within the FI module there are various sub modules and the important one are as follows:General LedgerBank AccountingAccounts PayableAccounts ReceivableAsset Accounting

The CO (Controlling) module is geared for Management reporting. It is required more for internal performance analysis. It gives information about the origin of the cost. It helps in controlling the costs of the organization. This module gives another dimension to the way profits are seen, by Product lines, Business segment by customer by region.It also helps in controlling and monitoring the Costs of the product which are manufactured in house.

The important sub modules in CO are as follows:-Cost Center AccountingProfit Center AccountingProfitability AnalysisProduct costingInternal order

The FICO module in SAP is very tightly integrated with all the modules in SAP. Data is posted real-time to FICO module. The important modules from which data is updated into FICO module are as follows:-

Materials Management (MM)Sales and Distribution (SD)Production Planning (PP)Human Resource (HR)

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ENTERPRISE STRUCTURE 1. Define Company T.code: OX15IMG Enterprise Structure Definition Financial accounting Define Company

In the SAP system, consolidation functions in financial accounting are based on companies. A company can comprise one or more company company codes.

Click New entries and update the Following

Save

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BearingPoint -

US

BearingPoint-India GDC

BearingPoint-China BearingPoint-Singapore


2. Define Company Code T.code: OX02IMG Enterprise Structure Definition Financial accounting Edit Copy, Delete, Check Company Code

The Highest organizational unit in the FI module is the company code. It is an organizational unit for which Balance sheet and Profit and loss account is possible. The various organizational units which are assigned to the company code are as follows Purchasing organization is assigned to the Company code. (MM module)Sales Organization is assigned to the Company code (SD module)Plants are assigned to the Company code (Logistics module)

Click New entries and update the Following

Press Enter, it will take us to next screen and update the following.

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3. Assign Company Code to Company T.code: OX16SPRO Enterprise structure Assignment Financial Accounting Assign Company code to company.

4. Define Chart of Accounts T.code: OB13SPRO Financial Accounting General Ledger Accounting G/L Accounts Master Records Preparation Edit chart of Accounts list

For each company code in SAP, you have to specify one chart of accounts for the general ledger. This chart of accounts is assigned to the company code. A chart of accounts can be used by multiple company codes. This means that the general ledgers of these company codes have identical GL structure.

Charts of accounts can have three different functions in the system:1) OPERATING CHART OF ACCOUNTSThe operating chart of accounts contains the G/L accounts that you use for posting in your company code during daily activities. Financial Accounting and Controlling both use this chart of accounts.You have to assign an operating chart of accounts to a company code

2) GROUP CHART OF ACCOUNTSGroup chart of accounts are used for reporting (Consolidation) purposes mostly.

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B.Madhusudhan Rao SAP FICO TRAINING -GL Accounting Take the example of Multinational Company like Coca-Cola

They have companies across the world but at the end of the year if they want to do reporting for the company coca cola as a whole, then they need to consolidate all the accounting stuff across the world. To remove that manual effort, group chart of accounts concept was indicted. Here, we will have one chart of accounts for the whole company, along with operating chart of accounts. Whatever is posted to operating chart of accounts is also posted to Group Chart of accounts. Hence, the whole process of consolidation is automated :)

3) COUNTRY SPECIFIC CHART OF ACCOUNTSThe country-specific chart of accounts contains the G/L accounts needed to meet the country's legal requirements. This allows you to provide statements for the country's legal requirements.The assigning of a country-specific chart of accounts to a company code is optional

Click New Entries and update the following

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B.Madhusudhan Rao SAP FICO TRAINING -GL Accounting 5. Assign Company code to Chart of Accounts T.code: OB62SPRO Financial Accounting General Ledger AccountG/L Accounts Master Records Preparations Assign company code to chart of Accounts.

Country specific charts of Accounts will be assigned here to draw up the financial statements to meet Legal requirement.

6. Define Account Groups T.code: OBD4SPRO SAP Ref IMG Financial Accounting General Ledger Accounting G/L Accounts Master Records Preparations Define Account Group

An Account group controls the data that needs to be entered at the time of creation of a master record. Account groups exist for the definition of a GL account, Vendor and Customer master.It basically controls the fields which pop up during master data creation in SAP.

1. Liabilities - 1.series2. Assets - 2.series3. Income- 3.series4. Expenditure- 4.series

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B.Madhusudhan Rao SAP FICO TRAINING -GL Accounting 7. Define Retained Earnings T.code: OB53SPRO SAP Ref IMG Financial Accounting General Ledger Accounting G/L Accounts Master Records Preparations Define Retained Earning Accounts

At the end of Fiscal year the balance in the profit & loss a/c must be transferred to Retained Earning account. To automatically carry forward the balance by the system to the retained earnings a/c , We have to define one or more profit & loss statement A/c types per chart of accounts and assign them to retained earnings account

Each Profit & Loss a/c is assigned to a Retained Earnings Accounts via key. We have to entered this key in the P & L statement a/c type field found in the chart of a/c are of each P & L a/c. Normally, Companies use one Retained Earnings a/c. For this reason, X can be denoted as the key

8. Define Fiscal Year T.code: OB29SPRO IMG Financial Accounting Financial Accounting Global Settings Fiscal Years Maintain Fiscal Year

Fiscal year is nothing but the way financial data is stored in the system. SAP provides you with the combination of 12 normal periods and also four special periods. These periods are stored in what is called the fiscal year variant.

9. Assign Company Code to Fiscal Year T.code: OB37SPRO IMG Financial Accounting Financial Accounting Global Settings Fiscal Years Assign Company code to Company

10. Define Posting Period Variant T.code: OBBOSPRO IMG Financial Accounting Financial Accounting Global Settings Document Posting Periods Define Variants for Posting Periods

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B.Madhusudhan Rao SAP FICO TRAINING -GL Accounting In this activity, we can define variants for open posting periods. In the standard setting, a separate variant for posting periods is defined for every company code. The name of this variant is identical to the company code name. Every company code is allocated to this variant with the same name.

Thus in our example we will have posting period variant which is identical to the company code i.e. 1000

11. Assign Posting Variant to Company Code T.code: OBBPSPRO IMG Financial Accounting Financial Accounting Global Settings Document Posting Periods Assign Variants to Company Code

12. Define Open and Close Posting Periods T.code: OB52SPRO IMG Financial Accounting Financial Accounting Global Settings Document Posting Periods Open and Close Posting Periods

In this activity we specify for each variant which posting periods are open for posting in SAP

13. Maintain Field Status Variant T.code: OBC4SPRO Financial Accounting Financial Accounting Global Settings Document Line Item Controls Maintain Field Status Variant

Field status groups control the fields which come up when the user does the transactions. There are three options for field selection. They are:

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Display onlySuppressedMandatory

So basically you can have any field either for display only or you can totally suppress it or make it mandatory.

The field status group is stored in the FI GL Master Record.

Select Field Status Variant - 1000Double click on Field Status Groups Folder

Select G001 – General and Double click on General Data.Text make it required entry field.

Save.

14. Assign Company Code to Field Status Variant T.code: OBC5SPRO Financial Accounting Financial Accounting Global Settings Document Line Item Assign Company Code to Field Status Variant

15. Define Tolerance Group for G/L Accounts T.code: OBA0SPRO Financial Accounting General Ledger Accounting Business transactions Open item clearing clearing differences Define Tolerance group for G/L Accounts.

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Debit columns are applicable when posting a loss due to a Payment difference.

Credit Columns are applicable when posting a gain due to a payment difference.

It is mandatory to assign a Tolerance Group to Every G/L, if no Tolerance Group is assigned to a G/L Account, by default system assign the “blank” Tolerance group defined above.

16. Define Tolerance Group for Employees T.code: OBA4SPRO Financial Accounting General Ledger Accounting Business transactions Open item clearing clearing differences Define Tolerance group for Employees.

The tolerance groups for Employees are used as follows:

1) We will define the maximum document amount the employee is authorized to post

2) The maximum cash discount percentage the employee is authorized to post3) The maximum accepted tolerance limit for payment differences

Payment differences are posted automatically with in 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.

If no tolerance group is assigned to a G/L Accounts, by default system assigns the “blank” Tolerance group defined above.

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17. Define Document Number Ranges T.code: OBA7/FBN1SPRO Financial Accounting Financial Accounting Global Setting Document Document Header Define Document Types.

We create the number ranges for documents. For each number range we specify:

· A number interval from which document numbers are selected· The type of number assignment (Internal or External)

Step 1

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Double Click Change Intervals Tab, it will take us to next screenStep 2

Double Click Insert Interval and enter the number rangesStep 3Update the following

Dark Red Colour Indicates – Posting Pertains to General Ledger Accounting

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Number Year

From Number

To Number

Doc Type

1 2009 1 100000 SA19 2009 100001 200000 KR15 2009 200001 300000 KZ17 2009 300001 400000 KA18 2009 400001 500000 DR14 2009 500001 600000 DZ16 2009 600001 700000 DA


Blue Colour Indicates – Posting Pertains to Accounts Payables Green Colour Indicates – Posting Pertains to Accounts Receivables

General Ledger Accounting

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We can create GL Accounts at 3 Stages based up on business requirements.1) Chart of Accounts Level – FSP02) Company Code Level – FSS03) Centrally – FS00

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B.Madhusudhan Rao SAP FICO TRAINING -GL Accounting Mostly we will create the GL accounts centrally i.e. FS00.

Chart of Account Ares

Company Code Area Centrally

FSP0 FSS0 FS00

The below mentioned GL Accounts are required to create to post the transactions.G/L account

CoCd

Account group

P& L statement acct

Balance sheet account

GL Long text

Account currency

Line item display

Sort key

Field status group

Relevant to Cash Flow

100100

1000 Liabilities

X Reserves & Surplus

INR X 001

G001

100110

1000 Liabilities

X Reserves & Surplus -1

INR X 001

G001

100000

1100 Liabilities

X Share Capital

INR X 001

G001

200100

1000 Assets X Cash Account

INR X 001

G005

X

400100

1000 Expenses

X Salaries Account

INR 001

G004

400300

1000 Expenses

X Rent Account

INR 001

G004

1. A) GL Accounts at Chart of Accounts- FSP0:21


When we create a GL Accounts at chart of Accounts level, we can able to create the required parameters under “Type and Description” which includes Account Group, P8 L Statement Account, P& L Account Type, Balance sheet, Description, Consolidation Data in Chart of Accounts.

1. B) GL Accounts at Company Code level- FSS0:

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When we create a GL Accounts at Company Code level, we can able to create the required parameters under “Type and Description” and “Create/Bank/Interest”. Step 1

Step 2

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1. C) Create GL Accounts Centrally T.code: FS00Accounting Financial Accounting General Ledger Master records Individual processing centrally

This is the T.code: FS00 we frequently used to create the GL Accounts.It will cover all the views like “Type/Description”, “Control Data”, and “Create/Bank/Interest”.Step 1

Click Create Button

Step 2

Step 3

Save

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Note: In the similar way we have to create the GL Accounts are 100110, 100000, 200100, 400100, and 400300.

2. Posting of Transactions T.code: F-02Accounting Financial Accounting General Ledger Document entry General posting

Posting Keys40 – G/L Account Debit50-G/L Account Credit

Now we will post the Share Capital Account entry; this posting is used to bring capital into business.

Accounting entry:Cash A/c Dr 1, 00,000/- To Share Capital A/c Cr 1, 00,000/-

1st step

Enter then it goes to next screen

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2nd step

Enter then it goes to next screen3rd step

Save.

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We will post one more document

We will post the Salaries Account entryAccounting entry:Salaries A/c Dr 5, 000/- -40 To Cash A/c Cr 5,000/- - 50

1st step


2nd step


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3rd step

SaveDocument 2 was posted.

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3. GL Document Change/Display T.code: FB02/FB03Accounting Financial Accounting General Ledger Document Change/Display

You wan to change an already posted document. You can change only fields like Text or Assignment.

Document Display for Share Capital

Document Display for Salaries

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4. GL Account Line Item Display T.code: FBL3NThis T.code is used to view a GL account line items for a particular account.We can see the Cash Balance in the Cash Balance Account1st Step

Click Execute Button, it takes you to next screen.

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5. General Information of GL Account TablesTable Description Table Name

GL Master Account Master Data - Company Code SKB1

GL Master Account Master Data - Chart of Accounts SKA1

Accounting Document "Segment" BSEG

Accounting Document "Header" BKPF

GL Accounts Cleared Items BSAS

SKB1 Table for List of GL Accounts

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Month end Closings

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PARKED DOCUMENTS

Parking a document is done either whena) The user has incomplete information concerning a business transactions b) The user is not authorized to post the transaction to the books of accounts

which is then posted by another authorized employee.

The system retains the parked document in its memory without actually posting in to the books of accounts. Therefore entries made in a parked document will not be reflected in the respective Account Balances.

The user can re-open the parked document after he has obtained complete information and post it to the books of accounts after filling in the data.

Note: It is possible to delete a parked document.

The system generates a document number for a parked document from the same no range as in case of a regular posted document. If a parked document is deleted, its document number is lost. In other words, the system does not reassign the document number of a deleted parked document to a new document.

In a Business scenario this implies that by looking at the missing document numbers in a series of posted documents, any auditor in future can estimate the numbers of parked documents were deleted.

Note: It is not possible to “Simulate” a parked document.

When modifying a parked document, we can make changes to the following fields.A) Document Date B) Posting Date C) AmountsD) Posting Keys E) Account No F) Business Area and Other account assignment G) Texts H) Document Type

However you cannot change “Company Code, Currency and Doc No Fields”.

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1. Creation of a Parked Document T.code: F-65Accounting Financial Accounting General Ledger Posting General Document Parking Step 1Update the following things.

Press Enter, then it will take us to next screenStep 2Update the following things.

Press Enter, then it will take us to next screen

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B.Madhusudhan Rao SAP FICO TRAINING -GL Accounting Step 3

Save

2. Check Account Balances T.code: FS10NAccounting Financial Accounting General Ledger Account Display Balances

Enter the GL Account: 400100 – Salaries to view the Account Balances

Parked Document has not been updated.

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B.Madhusudhan Rao SAP FICO TRAINING -GL Accounting 3. Display Parked Document T.code: FBV3Accounting Financial Accounting General Ledger Document Parked Documents Display

Enter Company Code and Double Click “Document List”

Click “Execute” Tab

Double Click on Document No, it will take us to next screen

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It Displays the Parked Document.

4. Modify /Post/Delete Parked Document T.code: FBV0/FBV2Accounting Financial Accounting General Ledger Document Parked Documents Post/Delete

Press Enter

Click Execute, it will take us to new screen

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Double Click the Document No: 3 and do the modifications and Press Save

It will show the log

Log Displays that Document is posted.



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ACCRUAL/DEFERRAL DOCUMENTSAccrued Expenses:These are expenses incurred in the current period, but where cash flow will be in future periods.

Ex: Salaries paid in arrears.

June 30: Dr. Salaries A/c : 400 Accrual DocsCr. Salaries Provision A/c : 400

July 1st: Dr. Salaries Provision A/c :400

Cr. Salaries A/c :400 Reversal Docs

July 5th: Dr. Salaries A/c : 400 Payment DocsCr. Cash A/c : 400

In the above example, the figure of 4000 considered towards salaries for the month of June is only a provisional figure, entered on the last day of the period for the purpose of financial statement preparation. The entry is posted using an Accrual Doc. This provisional entry is reversed on the very next day through reversing the Accrual Doc.

Once the actual Salaries figure is computed and the amount is disbursed among the employees (Say, by the 5th of the next period) the same is entered in the system in the form of a regular posted document.

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B.Madhusudhan Rao SAP FICO TRAINING -GL Accounting 1. Creation of Reversal Reason Code T.code: SPRO Financial Accounting General Ledger Accounting Business TransactionsAdjustment Posting/ReversalDefine Reasons for ReversalClick New Entries

Save

Note:

If the Negative posting is selected, then the entries posted in the reversal document will have a negative sign as follows.

Ex:31st May Dr Salaries Provision 5000

Cr Outstanding Exp 5000

1st June Dr Salaries Provision -5000Cr Outstanding Exp -5000

When you use negative posting, it leads to a reduction of total debits/total credits on the other hand.On the other hand, Reversal without negative posting (Conventional Reversal) leads to increase in total debits/total credits display in the G/L Account Balances.

If the Alternative Posting Date is not selected then the posting date of the reversal document has to be the same as the posting date of the original document.

2. Create GL Accounts Centrally T.code: FS0042

B.Madhusudhan Rao SAP FICO TRAINING -GL Accounting Accounting Financial Accounting General LedgerMaster RecordsIndividual Processing Centrally

G/L Account: 100500 – Outstanding Expenses A/c

Click New Entries and update the following

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Save.

3. Creation of Accrual Document T.code: FBS1Accounting Financial Accounting General Ledger Periodic Processing Closing Valuate Enter Accrual/Deferral Document.

Press Enter, it will take us to next screen

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Press Enter

Save

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4. Check Account Balances Display T.code: FS10NAccounting Financial Accounting General Ledger Account Display Balances

Enter the GL Account: 400100 – Salaries to view the Account BalancesClick Execute

We will see the 400100-Salaries Account Balance is 25000.00

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5) Reverse Accrual Document T.code: F.81Accounting Financial Accounting General Ledger Periodic process Closing Valuate Reversal accrual referral Document.

Click Execute

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6. Check Account Balances Display T.code: FS10NAccounting Financial Accounting General Ledger Account Display Balances


We will see the 400100-Salaries Account Balance is 15000.00

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Reversals

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Reversals

Individual Reversal of Mass Cleared Accrual/DeferralDocument Reverse Reversal Items ReversalReversal Document Reversal

1) GL Account Line Item Change/Display T.code: FB02/FB03Accounting Financial Accounting General Ledger Document Change/Display

Note: Before Clearing GL Account: 400100 – Salaries Accounts, we have to view the Balance and the Balance is Rs.15000

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2) Individual Document Reversal T.code: FB08Accounting Financial Accounting General Ledger Document Reverse Individual ReversalNow we are Reversing the Document: 2Select Reversal Reason Code: 1 {Reversal in current period}

Double Click on “Display before reversal”, it will display the reversal document.

Click Back and Save

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3) GL Account Line Item Change/Display T.code: FB02/FB03Accounting Financial Accounting General Ledger Document Change/Display

Now we will find that 5000/- is reversed.

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4) Reversal of Reverse Document T.code: F-02/FBR2Accounting Financial Accounting General Ledger Document entry General posting From the MENU select DOCUMENT - POST WITH REFERENCE

Select generate reverse posting check boxSelect display line items check boxEnter; it will take us to next screen

Enter once again and Change Text: Reversal for document No. 4

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Press Enter, it will take us to next screen.

Save

Click Continue.5) GL Account Line Item Change/Display T.code: FB02/FB03

Accounting Financial Accounting General Ledger Document Change/Display

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Now we will find that the G/L Account Balance is :15000/-

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RECURRING DOCUMENTS

These are used in case of recurring transactions where the amount, frequency of payment, date of payment, etc. are all fixed.

The contents of a Recurring Document are automatically copied into a regular document and posted by the system at a pre-determined frequency.

Note: For Recurring Documents the system defined document number range label for Recurring document is X1.

Scenario:We will take the example of Deferred Expenses.Deferred Expenses: Cash outflow is in current period but expenses will be incurred in future period.

Ex: Pre-paid Insurance Premium paid in advance for full year (2009-20010)

01.01. 2009 Dr. Pre-paid Insurance Premium A/c: 12,000/-

Cr. Cash A/c : 12,000/-

31.01.2009 Dr. Insurance Expenses A/c :1,000/-

Cr. Pre-paid Insurance Premium A/c :1,000/-

28.02.2009 Dr. Insurance Expenses A/c :1,000/-Cr. Pre-paid Insurance Premium A/c :1,000/-

We have to run the recurring execution every month end and the amount of pre-paid insurance premium A/c will be reduced and update to Insurance Expenses A/c.

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1) Creation of Number Ranges for Recurring Document FBN1SPRO Financial Accounting Financial Accounting Global Setting Document Document Header Define Document Types/Number Ranges

Click Change Interval , it takes us to next screen

Click Insert Interval and update as follows

Press Enter and Save.

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2) Create G/L Accounts Centrally FS00Accounting Financial Accounting General Ledger Master records Individual processing centrally GL Account: 400400 – Insurance Expenses A/c

GL Account: 200400 – Prepaid Insurance A/cG/L account

CoCd

Account group

P& L statement acct

Balance sheet account

GL Long text

Account currency

Line item display

Sort key

Field status group

Relevant to Cash Flow

400400

1000 Expenses

X Insurance Expenses

INR X 001

G004

200400

1000 Assets X Prepaid Insurance

INR X 001

G001

3. Pre-payment of Insurance Premium T.code: F-02Accounting Financial Accounting General Ledger Document entry General posting

Posting Keys40 – G/L Account Debit50-G/L Account Credit

Now we will post the Share Capital Account entry; this posting is used to bring capital into business.

Accounting entry:Prepaid Insurance A/c Dr 12,000/- To Cash A/c Cr 12,000/-

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Press Enter

Press Enter

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Save

4. Creation of Recurring Document T.code: FBD1Accounting Financial Accounting General Ledger Document entry Reference Documents Recurring Entry Document.

Press Enter

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Press Enter

Save

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A) For G/L Account: 200400- Prepaid Insurance, the amount 12,000/- is posted.

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B) For G/L Account: 400400, no balance is there.

6. Display Recurring Documents T.code: F.15Accounting Financial Accounting General Ledger Periodic Processing Recurring Entries List

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7. Execution of Recurring Entries T.code: F.14Accounting Financial Accounting General Ledger Periodic Processing Recurring Entries Execute

Click Execute, Session is created.

Go to Batch Input Session: SM35

Select the Session and Click Process

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Click Process

The Batch input session is completed.

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B.Madhusudhan Rao SAP FICO TRAINING -GL Accounting 8. Check Account Balances T.code: FS10NAccounting Financial Accounting General Ledger Account Display BalancesG/L Account: 400400 – Insurance Expenses

Click Execute

1,000/- updated in Account: 400400 through Recurring Execution.

G/L Account: 200400 – Prepaid Insurance A/c

Click Execute

1000/- reduced in G/L Account: 200400 through Recurring execution.66


Honeywell is a leading supplier of avionics and electronics, consumable hardware, engine controls, environmental controls, landing systems, power systems, propulsion engines, aerospace services and space products and systems for the aerospace industry, including commercial and regional airlines, air cargo carriers, as well as Original Equipment Manufacturers (OEMs) of commercial, regional, business and military aircraft and spacecraft .

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Honeywell Global Rollout ProjectsGlobal Templates have been prepared according to Country legal requirements.

Business Scenario - FINANCEFrom FI, once the Organization chart is released, we have to copy the reference company code based on Global Template, which will cover all the required parameters to meet the company reporting and legal requirements.

1) Copy Company Code from reference Co.code T.code: OX02IMG Enterprise Structure Definition Financial accounting Edit Copy, Delete, Check Company Code

Step 1

Double Clink on Copy, Delete, check company code, it will take you to next screen

Step 2

Double Clink on Copy org.Object or Press F6, it will take you to next screen

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Click Enter, it takes you to next screen

This is our reference Company Code 1000.

This is the Company Code:1100 we are creating from Reference Co.code: 1000.

Step 4

Note: In this step system will ask for copy the GL Accounts for Company code 11oo or not. We have to copy the GL Accounts, and then click yes, it takes you to next screen

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In this step if you want to use the different currency we have to click YES, Otherwise if we want to use same currency INR (we have used for 1000 company code) click NO.

Step 6

In this step we have changed the currency to USD. Now all the GL Accounts have been copied in USD Currency.

Step 7

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In this step all the number ranges and addresses have been copied.

Step 8

Save and Create a Transport Request.

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2) Change the Address of the Company Code T.code: OX02IMG Enterprise Structure Definition Financial accounting Edit Copy, Delete, Check Company Code

Step 1

Double click on Edit Company Code Data, it will

Step 2

Select the Company Code 1100 and Double click

Step 3

We have to change the address details which are shown above in red color.72


Step 4

In this step we have change the Address Details.

Step 5

Now we have to Double click on Address Tab or Shift F5, it will take you to next screen

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Step 6

In this step we have to change the address details of a Company Code 1100.

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Step 7

Save We have updated the address details.

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