SAP Finance

Table of Contents SAP Accounts Payable SAP AP is a submodule of SAP FI and is used to manage and record Accounting data for all the vendors. It handles vendor invoices, vendor payments and related activities. SAP Accounts Payable will be covered in four post as below SAP Accounts Payable Master Data SAP Accounts Payable […]

Validations are custom rules to check that FI data entered is correct. Validations are defined at company code level
Validations can be set at Document header level, Line item level and whole document level. Transaction code : OB28

Table of Contents SAP New GL SAP New GL offer following additional functionalities Cost of Sales Accounting Segment reporting / Profit Center Accounting. As per US GAAP and IFRS, segment reporting is required if segment external revenue exceeds 10% of total revenue. Using Document splitting balance sheet can be prepared at Segment level Parallel Ledgers

General Ledger

General Ledger master record is stored at 2 level

• Chart of Accounts Level
• Company Code level

At Chart of Accounts Level following data is maintained:

• GL Account number
• GL Account type
• GL Account Group

At Company Code level, following data is maintained

• Account Currency
• Valuation Group
• Tax category
• Alternative Account
• Tolerance group
• Field Status group
• Post automatically only

1. GL Account Group
   1. Maintained at Chart of Account level
   1. It is a mandatory field
   1. The account group determines the fields for the entry screens when you create or change a master record in the company code. The account group also determines in which number interval the account number must be.
2. Indicator Balance Sheet Account or P/L account
   1. Indicates that the G/L account is managed as a balance sheet account or P/L account
3. Group Account Number
   1. The usage of the group account number offers the advantage that by specifying a number; a group of accounts can be assigned immediately to the balance sheet or P+L item.

• Account Currency
  • If a currency other than the company code currency is specified, users can only post items in that currency to this account. If the company code currency is specified, users can post items in any currency to this account.

• Only Manage Balances in Local Currency
  • Typically used for Balance sheet open item clearing accounts. Posting can be made to the account only in company code / local currency. This facilitates clearing of Invoices and GRN. Example below

• Exchange Rate difference Key
  • This applies to a balance sheet GL account which holds foreign currency balances. At month end, foreign currency balances have to be revaluated and differences posted to exchange rate difference account. This is a Profit and loss account. There could be just one account to which any exchange rate difference is posted or multiple accounts depending on key specified in this field

• Tax Category

Determine whether the following apply to the GL Account

Tax Account	Account used exclusively for tax posting
Tax Relevant	GL accounts which will always have a tax posting. We can also specify the tax codes that will be used
Tax Not Relevant	No entry made in this field.

• Posting without Tax Allowed
  • If not selected posting to the GL account not possible unless a tax code is specified at line item level during document entry
  • If selected posting can be made to the GL Account with any tax codes specifications

• Reconciliation Account for account Type
  • An entry in this field characterizes the G/L account as a reconciliation account. The reconciliation account ensures the integration of a sub ledger account into the general ledger.

1. Alternative Account Number
   1. The account number from your legacy system
   1. The account number from a country chart of accounts

1. Account Managed in External System
   1. Relevant in case of distributed scenario. ALE

1. Tolerance Group
   1. Specify the GL account tolerance group for treatment of Open items during clearing

1. Open Item Management
   1. Selected where an account is managed as open item account
   1. Open Item accounts are Balance sheet account
   1. Open Item accounts will have Open line items and Cleared line items.
   1. For e.g. let’s take a vendor account. When vendor invoice is posted to it, it is unpaid and thus it shows as open line item. When Payment is made to vendor for this invoice, SAP Payment program identifies this invoice and clears it against the payment document. So in vendor account we see Open Invoice. These are unpaid invoices. Cleared Invoices. These are paid invoices
   1. Open Item Management typically is used for below types of accounts
      1. Clearing accounts
      1. Bank clearing account
      1. Payroll clearing account
      1. Cash discount clearing account
      1. GR/IR clearing account

1. Line Item display
   1. Enable line item display for GL account. Enable in case of Open Item Managed accounts
2. Sort Key
   1. Specify what information should be entered in the Allocation field in the GL Account line item display. For e.g PO number, Assignment number

1. Field Status Group
   1. Specify Field status of the GL Account

 

Create GL Account Centrally

Transaction code : FS00

Create GL Accounts

Transaction code : FSPO

This is another transaction code used to create GL accounts. This create GL data at chart of accounts level only. To create data both at chart of accounts and company code level use transaction FS00

 

Display the list of GL accounts created in Chart of Accounts

Transaction Code : F.10

 

Permit Negative Posting

A negative posting correct an incorrect posting without influencing the trail balance, for e.g. when a document is reversed , it’s negative amount is posted on the same side of the transaction. 

Transaction code:  S_ALR_87004651

 

Define reason for Reversal

While reversing a FI document a reason for reversal has to be selected. Define reason for reversal of FI document here.

Transaction Code: S_ALR_87004660

Table of Contents SAP Finance  In this article and the following articles we will run through various SAP Financeconfiguration steps in detail. We will be configuring a Model Company in SAP. We willconfigure and test below areas  : Enterprise structure in sap SAP Finance Global Settings General Ledger SAP New GL Foreign Currency Inter-company posting SAP