sap fico06 general ledger accounting level 2

7/25/2019 SAP FICO06 General Ledger Accounting Level 2

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Simplilearn Solutions

SAP FI: General LedgerAccounting Level 2

SAP Financials and Controlling


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Objectives

After completing this unit, you will be able to:

Post payments

Post business transactions in the cash journal

Carry out mass reversals and mass changes

Process recurring documents

Treat exchange rates

Run general ledger reports

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Payments Posting

SAP FI: General Ledger

Accounting Level 23


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Allocation Field for General Ledger Accounts

During document entry, the allocation field is populatedautomatically onto line items, based on the default sort indicator set inthe master record.

The allocation field can be a combination of up to 4 fields with amaximum of 18 characters.

It is possible to make a manual entry in the field allocation duringdocument entry to discontinue the default value.

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Manual Payment Process5

A manual payment is a transaction that clears an open item, typically aninvoice, by manually allocating an offsetting amount to the open item.

An incoming payment, typically used in accounts receivable, clears an opendebit amount.

An outgoing payment, typically used in accounts payable, clears an open

credit amount.

A manual payment is processed in three steps:1. The document header information is filled out.2. Open items are selected to be cleared.3. The transaction is saved.


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Document Header Payment Header6

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Document Header Bank Data7

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Document Header Open Item Selection

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Process Open Item9

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The first step in processing openitems is to activate the requiredline items to allocate a payment.The activation or deactivation of aline item may be done in anumber of ways:

1. Edit options for open items: Setflag to selected items initiallyinactive.

2. Mouse click: Double-click themouse on the amount of the

required item.3. Pull-down menus and function

keys: Select items and use pull-down menus or function keys toperform functionality required.


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Posting the Payment

The last step is to do a final check of the document entered. By selecting theoverview option, the line items entered may be reviewed before posting.

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Select document > Simulate > All line items (including any automatically generated)

If the debits do not equal the credits or there has been a mistake duringthe entry, it can be corrected by carrying out one of the followingoptions:o Changing, deleting, or entering a line item;o Selecting additional open items; oro

Editing selected open items.

If the debits and credits balance, then the completed document may beposted.


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Automatic Postings for Clearing Open Items

If necessary, the system performs automatic postings when clearing openitems.

Bank charges may be entered when entering the bank item and areautomatically posted to an assigned general ledger account.

To perform manual cross-company code payments, a clearing procedure(either incoming payments or outgoing payments) has to be assignedto the combination of the clearing company code and the company codewhich has to be cleared.

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Resetting Cleared Items

Clearing transactions can be canceled for individual documents. Whencleared items are reset, the clearing data is removed from the line items.

The changes are logged and can be displayed in changed documents. Inaccounts receivable, the payment history and the credit limit will becorrected, if applicable.

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Tolerance Groups13

In FI, tolerances are divided into two types:

The employee tolerance group is used to control:

o Upper limits for posting procedures (posting authorizations);

o Permitted payment differences.

The customer/vendor tolerance group is used to providespecifications for:

o Clearing procedures;

o Permitted payment differences;o Posting residual items from payment differences;

o Tolerances for payment advices.


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Configuration of Tolerance Group14

Two steps have to be taken to use tolerance groups:

Group definition:

o The tolerance group is defined by a group code, company code, and currencycode.

o The group code is a four character alphanumeric code.

o A blank group code with company code and currency is considered as thedefault tolerance group; and it contains the minimum tolerance required.

Group assignment:

o Employee tolerance groups may be assigned to employees.

o Customer/vendor tolerance groups may be assigned to a customer or vendormaster record.

o If no tolerances are assigned, the default tolerance group applies.


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Permitted Payment Differences

The specifications for permitted payment differencescan be found in bothtypes of tolerance groups. They control the automatic posting of cash discountadjustmentsand unauthorized deductions.

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Payment Differences

A payment difference normally occurs during the clearing of an open item. Thedifference is then compared to tolerance limits of the employee and thecustomer/vendor, and is handled according to: Inside tolerances Posted automatically as either cash discount adjustment

or unauthorized deduction.

Outside tolerances

Must be processed manually.

If the payment difference is too high to be immaterial, then the payment must beprocessed manually.

The payment may be posted as a partial payment.

The payment difference may be posted as a residual item. The payment difference may be posted to an account assigned by a reason code.

The payment difference may be set off by entering a new line item.

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Partial and Residual Payments

If the payment difference is outside tolerances, it has to be processedmanually.

Post the payment as a partial paymentwhere all documents remain as openitems on the account.

Post the payment difference as a residual itemwhere only the new residualitem is left on the account, clearing the original document and the payment. Anew document number is created referencing the original documents.

Post the payment difference as a difference postingto another accountusingreason codes with automatic account assignment or do a manual accountassignment through the charge of the difference.

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Reason Codes

Reason codes are used to describe the reason for payment differences. Toassign more than one reason code to a payment difference, click ondistribute difference.

Reason codes can be assigned to different postings for partial payments

and residual items. The reason code can be used to analyze and post process payment

differences.

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Cash Journal

Overview


Accounting Level 219


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Cash Journal Assignment

The cash journal is a tool that was offered with R/3 release 4.6 to managecash. It supports posting cash receipts and payments.

With this tool, it is possible to: Create separate cash journal for each currency;

Post to customer, vendor, and general ledger accounts; Run several cash journals in each company code; and Choose a random number for cash journal identification (a four-digit

alphanumeric key).

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Setting Up the Cash Journal

To set up a new cash journal for a company code, enter the appropriatevalues for the following fields:

The company code in which the cash journal is to be used.

The four digit cash journal identification and name.

The general ledger accounts to which the cash journal business transactions areto be posted.

The currency in which the cash journal is to be run.

The document types for:

General ledger account postings;

Outgoing payments to vendors;

Incoming payments from vendors;

Outgoing payments to customers;

Incoming payments from customers.

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Business Transaction Types

Standard accounting transaction types and their associated postings are:

Expense (E) Expense/Cash

Revenue (R) Cash/Revenue

Cash transfer:

o Cash journal to bank (B) Bank/Cash Journalo Bank to cash journal (C) Cash Journal/Bank

Accounts receivable (D):o Customer-incoming payment Cash/ARo Customer-outgoing payment AR/Cash

Accounts payable (K):o Vendors-outgoing payment AP/Casho Vendors-incoming payment Cash/AP

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Define a Cash Journal

There are two places where new cash journal accounting transactionscan be defined: in the cash journal itself or in the implementation guide.

Depending on the type of transaction posted, name it accordingly.

To create accounting transaction, select the following:o The company code in which the accounting transaction should be created;o The accounting transaction type;o Select a tax code for E (Expense) and R (Revenue) transactions which

determine the accounting transaction control.

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Posting Business Transactions inthe Cash Journal

The cash journal has the form of a new ENJOY transaction. The screen isdivided into three sections: Data selection; Balance display; Accounting transactions.

The cash journal is one of the new ENJOY-single screen-transactions: It ispossible to create, display, and change cash documents on one screen.

It is possible to: Save cash journal entries locally in the cash journal sub-ledger;

Copy and delete; Print the cash journal entries.

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Mass Reversals and

Mass Changes




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Mass Reversals

Use mass reversal to reverse more than one document at a time.

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Accounting > Financial accounting > General ledger > Document > Reverse >Mass reversal (F.80)

1. Give the company code2. To reverse random numbers: Select multiple selection button beside

document number3. Under single values4. Give document number5.

Select copy button6. Reason for reversal: 017. Select test run check box8. Execute9. Select reverse document button


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Mass Changes

As of SAP R/3 4.0, it is required to process a worklist using financial accountingand asset accounting standard functions in order to carry out mass changes.

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Step 1: Create a substitution rule to specify which fields need to be changed and howto change them.

Step 2: Generate a list of assets to be changed (for example, by running a standardreport with the appropriate selections).

Step 3: Choose the create worklist function.

Step 4: Enter a description and select a purpose for our worklist. The purpose is apredefined standard task in the system (for example, change master data).

Step 5: Choose the appropriate substitution rule for the mass change.

Step 6: If the workflow is not to be used, ensure that the worklist created is notassigned to any user.

Step 7: Check whether the mass change was successful by displaying the assets orrunning an appropriate report.


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ProcessingDocuments




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Create and Process Recurring Documents

For postings that recur on a regular basis, such as payments for rent orinterest, legal fees, and property taxes, use therecurring entryprogramto have the necessary documents generated automatically.

The recurring business transactions must be stored in the system asrecurring entry original documents.

The recurring entry program must be started at regular intervals within aspecified period.

When the session is processed, a financial accounting document thatcorresponds to the original document is posted, and the date of the nextposting is changed accordingly in the recurring entry original document.

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Treating Exchange Rates




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Realized Exchange Rate Differences

When clearing open items in a foreign currency, realized differences mayoccur due to fluctuations in exchange rates.

This fluctuation causes exchange rate differences that the systemautomatically posts as realized gains or losses.

The system automatically posts to the revenue/expense accounts definedfor exchange rate differences in configuration, thus eliminating thepossibility of incorrect entries.

The realized difference is stored in the cleared line item.

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Account Determination

All reconciliation accounts and all general ledger accounts with openitem transactions in foreign currency must be assigned to therevenue/expense accounts for realized losses and gains.

One Gain/Loss account can be assigned to:

o All currencies and currency types;

o Per currencies and currency types;

o Per currency; and

o Per currency type.

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General

Ledger Reports Overview




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Accessing the Reports for General Ledger Accounts34

Access important reports using the information system for each area suchas, G/L, AR, and AP; and on the general report selection screen.

Reports are also included in role-based user menus.

Accessing reports System > System Services > Reporting Enter the report nameOR Use F4 help and placeholders (for example, RFD*)

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Report Names for General Ledger Accounts35

Work out the names of the standard reports from the letters they contain.

Exampleo The name of thevendor account list is RFKKVZ00.o The name of the customer account list is RFDKVZ00.o The name of the G/Laccount list is RFSKVZ00.

The reports that start with RF are differentiated by account type.Reports start with RFK (for vendors), RFD (for customers), RFS (forG/L accounts), and RFB (for document reports).

To display program documentation, choose I.

G l L d I f ti


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General Ledger InformationSystem General Ledger Reports

The general ledger account balance list displays the selected totals figuresby reporting period.

It is possible to see:o

The balance carried forward at the start of the fiscal year;o The total for the carry forward period;o The debit and credit total for the reporting period;o The debit and credit balances at the end of each reporting period;o The total for each company code;o The final total for all company codes for each local currency.

It is possible to choose a sorting method that also permits to summarizedata using summarization levels.

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SAP List Viewer Line Item List37

A generic display tool in intermediate general ledger that creates astandard ergonomic list from predefined data.

Standardizes and simplifies the use of lists in the SAP system byproviding a uniform interface and list preparation function.

Display simple and

hierarchical sequential lists.

Contains a number ofinteractive functions:o Sorting,o Summation,

o Filters, etc.

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SAP List Viewer Display/Change Documents

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Select detail: To get detailed information for an item, select it first. Theeyeglasses icon can be used or double-click the item to display the individualdocument.

Select items: To select an item, select it on the left side of the line item list. Toselect multiple items, select a single item, hold Ctrl, and select the other items.

Carry out a mass change indocuments.

To see the changes in the lineitem list, chooseRefreshList.

Choose whether branch to thedocument item view or the

document overview of thedocument display.


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SAP List Viewer: Generic Functions forGeneral Ledger Accounts

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Select columns: To select a column, click the column heading once. To selectmultiple columns, select a column, hold Ctrl, and select the required columns. ToSort the list in ascending or descending order, sort the list by selecting therequired column and then choosing the corresponding function. Filters can beset and deleted the same way.

Summation: Totals andsubtotals for specific values canbe created. Create totals byselecting the required columnand then choosing theappropriate icon.


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SAP List Viewer Display Variants and Fields40

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Create own display variants.

Define own specific view ofa list.

Select fields that are to be

seen from the fieldsavailable in the columnset.

Hide fields that are notrequired.

Sort fields in the columnselection in the orderrequired.

Classic List and Grid Control in the


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Classic List and Grid Control in theLine Item List for General Ledger Accounts

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ALV Classic List:Essentially the print screenand offers a better overview of the sorted listwhen the items for multiple accounts are displayed.

ALV Grid:

The grid control design has proportionate text and is particularly useful when theindividual accounts is displayedonlinefor the Internet services offered bySAP programs.

User Parameters for the List for


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User Parameters for the List forGeneral Ledger Accounts

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Display and modify the settings using transaction FB00, the accountingediting options on theLine Items tab page.

Display and change parameters using transaction SU3.

Use parameter IDs to enter user default values in fields where the

value usually remains constant.


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Line Item List for General Ledger Accounts43

Use specific selection criteria to choose intermediate general ledger lineitems to be evaluated.

These selection criteria refer to:

o The accounts in which the intermediate general ledger line items in specific

company codes are to be seen.o Selection criteria that can be chosen using search help.

o The selection of intermediate general ledger line items based on their status andcategory.

It is also possible to choose the layout and maximum number of itemsfor the list output.


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Selection of G/L Account44

Use simple andmultiple selection to include or exclude individualaccounts and account intervals from the selection.

If the Worklists Available field is selected, it is possible to activate anddeactivate the input fields for worklists on the selection screen foreach line item list.

Selection Using Search Help for


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Selection Using Search Help forGeneral Ledger Accounts

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When general ledger accounts items are selected using search help, thesystem offers input help for the vendor line item list.

It is possible to select general ledger accounts items for the line item listbased on their status and category.

When open itemsare selected, the general ledger accounts items thatare or were open at a specifictimewill be selected.

If Cleared Itemsare chosen, the system displays general ledger accountsitems that were cleared by the clearing date specified and that werestill open on the key date.

If open and cleared items are to be seen, then chooseAll Items. Thisselection can be restricted using the posting date.

Head Office and Branch Accounts


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Head Office and Branch Accountsfor General Ledger Accounts

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In the SAP system, headoffice and branch accountscan be set up.All items posted to a branch account are automatically forwarded to thehead office account.

If theBranch/Head Office indicator is selected, a dialog box appears foreach branch account.

Choose whether the branch can display items that are managed at thehead office.

If the dialog box is deactivated, the setting made in theItems Managed atHeadOffice field applies automatically.


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Icons in General Ledger Accounts47

In the header of the ALV classic list, it is possible to display the keyfor the icons for the item status (Open, Parked, Cleared), as well asthe icons for the due date (Overdue, Due, Not due).

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Sort Criteria for General Ledger Accounts48

Define sort criteria for sorting and creating subtotals. The assignment field can be a combination of up to four fields with a

maximum of 18 characters.

If the sort key for the Cost Center in aG/L master record is selected, thenthe assignment field will contain thecost center for G/L account line items.

The line items in the line item display

are frequently sorted by the value inthe assignment field.

If thePurchase Order Number sort key is selected in the customer/vendor masterrecord, then the assignment field will contain the purchase order number forcustomers/vendors line items.

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Summary

Here is a quick recap of what was covered: Posting incoming and outgoing payments

Posting transactions in the cash journal

Creating a cash journal and assigning it to a G/L account

Carrying out mass reversals and mass changes Posting documents

Treating currency exchange rates

Running important general ledger reports

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Q and A50


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Knowledge Check 1

1. State if the following statement is True or False.

In incoming payments, the system adds the bank charges to the paymentamount to form the clearing amount. In outgoing payments, it subtracts thebank charges from the payment amount to form the clearing amount.

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Knowledge Check 1


In incoming payments, the system adds the bank charges to the paymentamount to form the clearing amount. In outgoing payments, it subtracts thebank charges from the payment amount to form the clearing amount.

Answer: True

Explanation: The bank may charge bank charges for their services whichare automatically posted to a special expense account. In incoming payments,the system adds the bank charges to the payment amount to form the clearing

amount. In outgoing payments, it subtracts the bank charges from thepayment amount to form the clearing amount. This way, the payer always hasto pay the bank charges.

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Knowledge Check 2


With the cash journal tool, we can create separate cash journal for eachcurrency, post to customer, vendor, and general ledger accounts, run severalcash journals in each company code, and choose a random number for cash

journal identification.

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Knowledge Check 2


With the cash journal tool, we can create separate cash journal for eachcurrency, post to customer, vendor, and general ledger accounts, run severalcash journals in each company code, and choose a random number for cash

journal identification.

Answer: True

Explanation: The cash journal is a tool for managing cash that was offeredwith R/3 release 4.6. It supports posting cash receipts and payments. With thistool, we can create separate cash journal for each currency, post to customer,vendor, and general ledger accounts, run several cash journals in eachcompany code, and choose a random number for cash journal identificationaccounting. This number is a four-digit alphanumeric key.

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Knowledge Check 3


A payment difference normally occurs during the clearing of an open item.Inside tolerances are posted automatically as either cash discount adjustmentor unauthorized deduction.

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Knowledge Check 3


A payment difference normally occurs during the clearing of an open item.Inside tolerances are posted automatically as either cash discount adjustmentor unauthorized deduction.

Answer: True

Explanation: A payment difference normally occurs during the clearing of anopen item. The difference is then compared to tolerance limits of the employeeand the customer/vendor, and is handled accordingly. Inside tolerances are

posted automatically as either cash discount adjustment or unauthorizeddeduction. Outside tolerances must be processed manually.

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Knowledge Check 4


It is not mandatory to assign all reconciliation accounts and all general ledgeraccounts with open item transactions in foreign currency to therevenue/expense accounts for realized losses and gains.

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Knowledge Check 4


It is not mandatory to assign all reconciliation accounts and all general ledgeraccounts with open item transactions in foreign currency to therevenue/expense accounts for realized losses and gains.

Answer: False

Explanation: All reconciliation accounts and all general ledger accounts with open itemtransactions in foreign currency must be assigned to the revenue/expense accounts forrealized losses and gains. When clearing open items in a foreign currency, the realized

differences may occur due to fluctuations in exchange rates. This fluctuation causesexchange rate differences that the system automatically posts as realized gains or losses.The system automatically posts to the revenue/expense accounts defined for exchangerate differences in configuration, thus eliminating the possibility of incorrect entries.

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Knowledge Check 5

5. Select the correct option and fill in the blank.

General ledger account reports start with ____.

a. RFK

b. RFDc. RFS

d. RFB

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Knowledge Check 5

5. Select the correct option and fill in the blank.

General ledger account reports start with ____.

Answers: c.

Explanation: We can figure out the names of the standard reportsfrom the letters they contain. The reports that start with RF aredifferentiated by account type. Reports start with RFK (for vendors),

RFD (for customers), RFS (for general ledger accounts), and RFB (fordocument reports).

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