New GL Accounting

What Is New General Ledger Accounting

General Ledger Accounting (FI-GL) (New)

The central task of G/L accounting is to provide a comprehensive picture of external accounting and accounts. Recording all business transactions (primary postings as well as settlements from internal accounting) in a software system that is fully integrated with all the other operational areas of a company ensures that the accounting data is always complete and accurate.

Beyond fulfilling the legal requirements, General Ledger Accounting also fulfills other requirements for modern accounting:

- Parallel Accounting

General Ledger Accounting allows you to perform parallel accounting by managing several parallel ledgers for different accounting principles.

- Integration of Legal and Management Reporting

In General Ledger Accounting, you can perform internal management reporting in parallel with legal reporting. For this purpose, the Profit Center Accounting functions are integrated with General Ledger Accounting. Furthermore, you can generate financial statements for any dimension (such as profit center).

- Segment Reporting

General Ledger Accounting supports the segment reports required by the accounting principles IFRS (International Financial Reporting Standards) and US GAAP (Generally Accepted Accounting Principles). For this purpose, General Ledger Accounting contains the Segment dimension.

- Cost of Sales Accounting

You can perform cost of sales accounting in General Ledger Accounting. For this purpose, General Ledger Accounting contains the Functional Area dimension.

Features
General Ledger Accounting comprises the following functions for entering and evaluating posting data:

- Choice between group level or company level

- Automatic and simultaneous posting of all subledger items in the appropriate general ledger accounts (reconciliation accounts)

- Simultaneous updating of the parallel general ledgers and of the cost accounting areas

- Real-time evaluation of and reporting on current posting data, in the form of account displays, financial statements with different balance sheet versions, and additional analyses.

In this way, General Ledger Accounting automatically serves as a complete record of all business transactions. It is the central and up-to-date component for reporting. Individual transactions can be checked at any time in real time by displaying the original documents, line items, and monthly debits and credits at various levels such as:

- Account information

- Journals

- Totals/transaction figures

- Balance sheet/profit and loss evaluations

However, SAP still offers to choose between the New GL and the old Classic GL way of accounting.

There are certain limitations in the new GL and clients are adopting to the new gl concept.

Important Transaction Codes - SAP FICO

1. CHART OF ACCOUNTS

0BY7 = Copy chart of accounts.

2.FISCAL YEAR VARIANTS

OB29=define fiscal year variants

OBB0=define posting periods variants

3.COMPANY CODE CONFIGURATION

OX02=company code creation

OBY6=define company code global parameters

EC01=copy company code

OY01=define countries

OB22=define parallel currencies

4.BUSSINESS AREAS

OX03=define business areas

GGB0=define validations

OB28=activate FI validations

5.FUNCTIONAL AREAS.

OKBD=define functional areas.

GGB1=define substitution

GS01=create sets

OBBZ=create functional area substitution

6.SALES AND USE TAX.

OBBG=assign country to tax calculation procedure

OBCO=specify structure for the jurisdriction code

OBCP=define tax jurisdiction codes

FTXP=define codes on tax and purchases

OBCL=define tax code for non-taxable transactions

GENERAL LEDGER

1. CHART OF ACCOUNTS.

OBD4=define account groups.

FSP3=chart of account display

OB53=define retained earnings account

OB15=define sample account rule types

FSK2=define data transfer rules

OB67=allocate company codes to rule types

FSM1=create sample accounts

FS01=create G/L accounts master records

2. COPYING AND TRANSPORTING G/L ACCOUNTS.

OB49=transport chart of accounts

OBY2=copy company codes

OBC4=define field status groups

3.POSITION KEY CONFIGURATION.

OB41=define position key configuration.

4. AUTOMATIC ACCOUNT DETERMINATION.

FBKP=configure auto act determination

OBY0=define tax accounts auto act assignement

OBYA=define cross company code

5.FINANCIAL STATEMENT VERSION.

OB58=define financial statement version

6.G/L DISPLAY CONFIGURATION.

O7Z3=define line layouts

OBVU=add special fields

O7S7=define sort variants

O7R1=define total variants

7.TOLERENCE GROUPS.

OBAY=define tolerance groups

OB57=allocate isers to tolerance groups

8.NUMBER RANGES AND DOCUMENT TYPES

FBN1=define FI number ranges

OBA7=define FI document types

OBU1=define document types and posting keys

O7E6=define fast entry screen

ACCOUNTS PAYABLE A/P

1. HOUSE BANKS AND ACCOUNTS

FI12=define house banks

FCH1=define check lots

FCHV=define void reason codes

2. PAYMENT PROGRAM CONFIGURATION

FBZP=payment program configuration

3. VENDOR MASTER DATA

OBD=3define vendor groups

XKN1=create number ranges for vendor account groups

OBAJ=assign number ranges to vendor groups

FK15=copy vendor master records

FK16=important vendor master records

ACCOUNTS RESIVEABLR A/R

1. TERMS OF PAYMENTS AND INTEREST CALCULATION

OBB8=define terms of payments

OB46=define interest calculation types

OB82=make the interest indicator avail to interest run program

OBAC=define reference interest rates

OB81=assign reference interest rates to interest indicators

OBV1=interest calculations account assignment

2. REASON CODES.

OBBE=define reason codes

OBCR=define reason codes conversion version

OBCS=map external reason codes to internal reason codes

3. DEFAULT ACCOUNT ASSIGNMENT

OBXL=assign G/L account to reason codes

OBX1=cash discount accounts

4. OVERALL A/R AND EMPLOYEE TOLERENCES

OBA3=define customer tolerance groups

5. CREDIT MANAGEMENT

OB45=define credit control areas

OB01=define credit risk categories

OB02=define credit representative groups

OB51=assign employee credit representitive groups

OB39=define days in arrears calculation

6. CUSTOMER MASTER RECORDS.

OBD2=define customer groups

ACCOUNTS RESIVEABLR A/R

1. TERMS OF PAYMENTS AND INTEREST CALCULATION

OBB8=define terms of payments

OB46=define interest calculation types

OB82=make the interest indicator avail to interest run program

OBAC=define reference interest rates

OB81=assign reference interest rates to interest indicators

OBV1=interest calculations account assignment

2. REASON CODES.

OBBE=define reason codes

OBCR=define reason codes conversion version

OBCS=map external reason codes to internal reason codes

3. DEFAULT ACCOUNT ASSIGNMENT

OBXL=assign G/L account to reason codes

OBX1=cash discount accounts

4. OVERALL A/R AND EMPLOYEE TOLERENCES

OBA3=define customer tolerance groups

5. CREDIT MANAGEMENT

OB45=define credit control areas

OB01=define credit risk categories

OB02=define credit representative groups

OB51=assign employee credit representitive groups

OB39=define days in arrears calculation

6. CUSTOMER MASTER RECORDS.

OBD2=define customer groups

CONTROLLING ENTERPRISE STRUCTURE

1. CONTROLLING AREAS

OX06=controlling area maintenance

OKKP=activate relative CO components within

Controlling area

KANK=maintain number ranges

2. OPERATING CONCERNS

KEP8=maintain operating concerns

OKEQ=version configuration screen

COST ELEMENT ACCOUNTIN

1. AUTOMATIC COST ELEMENT CREATION

OKB2= automatic cost element creation

OKB3= creation of the cost elements

Creation batch run session

SM35= execution of the cost element creation

batch input session

2. MANUAL COST ELEMENT CREATION

KA06= seacondry cost element creation

KA01= primary cost element creation

3. IMPUTED COSTS

KSAZ= manual overhead costing sheet

Creation for imputed cost calculation

4. RECONCILATION LEDGER

KALA= activate the reconciliation ledger

OKKP= assignment of the reconciliation

Table to the controlling area

OBYB= maintain the CO-FI automatic account

Assignment configuration

OK13= assignment to the reconciliation ledger

Document number range

COST CENTER ACCOUNTING

1. C.C.ACCOUNTING STANDARD HIERACHRY

KSH2= C.C.A standard hierachry maint creation.

2. CO AREAS P.C.A MAINT.

OKES= maint the PCA CO area settings

OK59= creating the dummy profit center

3. COST CENTER BASICS

OKA2= cost center category maint

OKEG= maint of the time based fields

KS01=creating/main the cost center M. records

4. ACTIVITY TYPES STATSTICAL KEY FIGURE

KK01=creation / maint of statistical key figs

KVA5= activity independent key figs

KV06= creation of an allocation cost elements

OKEI= time based field maint for activity types

OKL01= creation maint of activity types

5. ASSESMENT –DISTRIBUTION AND REPORTING

KCAV= maint of the allocation character for the sender /receiver

KA06= creation/maint of the assessment cost element

KSWI= creation of the cost center reporting

KSV1= creation of the cost center distribution

KSU1= creation of the cost center assessment

6. COST CENTER ACCOUNTING PLANNING

KP97= copy planning for cost center accounting

KPU1=creation of the plan revaluation

KP65= creation of the cost planning layout

KP34=planning profile creation

OKB9=maint of the CO automatic account

INTERNAL ORDER ACCOUNTING

1. ORDER SETTELEMENT CONFIGURATION

KA01= primary cost element

KA06= secondary cost elements

OK06= settlement structure

OKEV= origin source structure

OK07= settlement profile

SNUM= maintain number range assignment

2. ORDER PLANNING AND BUDGITING

OKEQ= maintain CO versions

OKOS= define planning profile for overall value planning

OKOB= define budget profile

OK14= maintain budget manager

OPTK= define exempt cost element for availability control

KANK= maint number range assignment

OK11= maint number range for planning/ budgeting objects

3. INTERNAL ORDER STATUS MANAGEMENT

KOT2= define order status management

KOV2= define transaction groups

OK02= define status profile

BS52= define authorization keys

4. ORDER TYPE DEVELOPMENT

KOT2= define order types

PROFITABILITY ANALYSIS

1. OPERATION CONCERN DEVELOPMENTS

KEAO= maintain operation concerns

2. CHARACHTERISTIC DERICATION

KE4K= maint derivation

KE04= create derivation structure

KE05= change derivation structure

KE06= display derivation structure

KES1=maintain CO-PA master data

KE07= create derivation rules

KE08= change derivation rules

3. ASSIGNING VALUES TO VALUE FIELDS

KE41=assign condition types to value fields

KE4M= assign SD quantity fields to value fields

KE4W= reset value fields

KEI1= define PA settlement structure

KEU1= create CO-PA cost center assessment

KEV2= change CO-PA cost center assessment

4. CO-PA PLANNING

OKEQ= maintain plan versions

KEF1= define planning revaluation

KE14= create planning layouts

KE15= change planning layouts

KE16= display planning layouts

KP34= define planning profiles

KE4D= define external data transfer structure

KE4Z= define assignment groups

KE4E= define field assignment

KEN2= define plan number ranges

5. ACTIVITY CO-PA

KEKK= assign controlling areas to operating concerns

KEN1= define number ranges to actual postings

6. CO-PA REPORTING

KER1= define report line structure

KE34= create forms

KE35= change forms

KE36= display forms

KE31= create CO-PA reports

KE32= change CO-PA repots

KE33= display CO-PA reports

7. CO-PA TRANSPORTS

KE3I= create CO-PA transports

PROFIT CENTER ACCOUNTING

1. BASIC SETTINGS AND MASTER DATA REVIEW

OKE5= maintain controlling area setups

1KE1=analyze settings

OKE4= update settings

OKE7= maintain time based fields

2. ASSIGNEMENT IN PCA

1KEB= perform fast assignment

OKEM= sales order sub creation

OKEL= sales order dist sub creation

1KE4= PCA assignment monitor

3. ACTUAL POSTING MAINTAINANCE

1KEF= set control parameters for actual postings

GCBX= define document types for actual postings

OKB9= maintain default account assignment

3KEH= maintain add. Bal. sheet and P&L acts.

2KET= activate balance carry format for CO-PA

4. PCA PLANNING

OKEQ= maintain controlling versions

GCBA= define documents types for plan postings

GS01= set maintenance for plan parameters creation

GP41= create plan parameters for plan postings

KE62= copy data to plan

INVESTEMENT MANAGEMENT

1. PROGRAMS TYPES, INVESTEMENT MEASURES

AND INVESTMENT PROFILE

OIT3= define program types

OITA= define investment profiles

2. I.M PLANNING AND BUDGETING PROFILES

OIP1= define investment management plan profile

OIB1= define IM budget profile

OIT5= assign actual value to budget category

OK11= define IM management plan profile

SIMPLE DOCUMENTS

1) Document header contains: Document and posting date, Doc, header text, company code, Reference no, etc.

2) For each FI transaction code (E.g. Invoice, Credit memo, G/L entry – F-02) you can define a document type and default posting key. (You can over write these default values while entering document.)

3) In Enjoy transactions : while entering customer/vendor Invoice/Cr.Memo transactions Vendor/Customer (Business partner) master data can also displayed along side the a/c name, address and bank details, and open line items can be accessed by pressing “Open Items” button. Entry screen also contains a/c balance display.

4) In Enjoy transactions via “Tree” you can access screen variants, a/c assignment templates and held documents at the left side of the screen.

5) You can enter explanatory text for line items with “*” in front of the text so as to print this text in dunning notices and payment advice notes.

6) In customizing you can define text templates under 4 digit key, these text templates are copied into line item when you enter the relevant key (E.g. DP = “DOWN PAYMENT”). While entering 4 digit key “=” needs to be entered before the key.

IMG:FI A/cing>Doc>Line Item>Define texts for line items.

POSTING AUTHORISATION

IMG: FI.A/cing> F.A.Global settings>Document>Doc Item> Define tolerance groups for Employees.

1) The maximum amounts are defined per company code in “TOLERANCE GROUP”. (This is also where the payment processing of payment differences is controlled)

2) In the tolerance groups you can enter Upper limits for the following :

i) Total amount per document. (The posting amount is the total of all debit items or, similarly, the total of all credit items.)

ii) Amount per customer/vendor item. (Limit is per customer, one document with more than one customer/vendors can be entered) The restriction does not apply to automatically created line items, for example, during payment settlements.

iii) Cash discount – which user with this tolerance group is able to grant.

3) If a user is not assigned to any special tolerance group, then entries in the tolerance group “___” (blank) are valid for them. (This is default tolerance group)

POSTING PERIODS

IMG: FI.A/cing> F.A.Global settings>Document>Posting Periods> Open and close posting periods.

1) Several Company codes can use same posting period variant.

2) The SAP system automatically determines the posting period and fiscal year based on the posting date entered. (Only special period needs to be manually changed)

3) The posting period variant is assigned to the company code.

4) Posting periods are defined in the fiscal year variant, Closing/opening posting period are carried out in posting period variant.

5) The posting period variant must contain at least the account type “+”.

6) During year closing, two period intervals (Normal and special periods) must be open at the same time.

7) In the document header, the periods assigned to the account type “+” are checked with posting date, whether posting period is open for that date or closed. At the line item level, the system checks the account type of the posting key to ensure that the period is open for the assigned account type.

DOCUMENT STRUCTURE / CONTROL

1) A document is saved for every posting. Every Document is uniquely identified by the Document Number, Company Code and Fiscal Year.

2) A Document contains Document header + 2 to 999 line items.

3) Document Type : Controls the Document header and classify the business transactions to be posted.

Posting Key : Controls the Line items.

4) Document types are defined at client level. Document types define the following:

a) Number ranges for Document number.

b) Account types permitted for postings. And also

c) The field status of “document header Text” and “Reference number” in the Document header.

d) Whether the invoices are posted with net procedure.

5) Standard Document types are :

KR – Vendor Invoice DR – Customer Invoice.

KG – Vendor Cr.Memo. DG – Customer Cr.Memo.

KZ – Vendor Payment DZ – Customer Payment.

AB – General Document SA – G/L a/c posting.

6) Document numbers can have internal or external number assignment.

7) Up to a future fiscal year – Number range will continue irrespective of year end.

For each fiscal year – At the start of a new year the system starts the number assignment again at the start of the number range. (You need to define number range for every new fiscal year)

8) The document number range must not over lap.

9) Document type AB allows postings to all account types.

10) One number range can be assigned to several document types.

11) Posting keys are defined at client level.

12) Posting keys control:

i) On which type of account the line item can be posted to

ii) The item is posted as a Debit or Credit.?

iii) The field status of additional fields.

In addition to this posting key specifies the following:

Whether line item is connected to payment transaction or not.

Whether posting is sales relevant.

13) Document line item fields are controlled by :

a) G/L Account specific field status group assigned to the G/L account while creating. (Account specific field status groups are summarized under field status variant which is assigned to company code) If the document is posted to a sub ledger a/c, the field status group of the reconciliation a/c is used.

b) Posting key specific field status group.

(The field status HIDE cannot be combined with the field status REQUIRED entry which causes an error.)

14) Document type does not have default posting key or vise versa. For each FI transaction (E.g. Invoice, Credit memo, Out going payment) you can define a document type and default posting key at:

IMG:FI A/cing>F.A.Global Settings>Document>Default values for document processing>Default values.

(E.g. When posting outgoing invoices, you use the document type "DR" and

posting key "01". You can store these specifications in the system. They

are proposed by the system when you call up the corresponding

transaction).

BANK ACCOUNTS

1) Bank Master can be created four ways :

i) When entering Customer/Vendor master records or in the customizing for house banks.

ii) Using the create bank transaction in the accounts payable/receivable master data menu.

ii) The bank directory can be imported from disk/tape using program RFBVALL_O.

iii) Customers using lock box function can create a batch input session that automatically updates customer banking information in the master records.

2) Bank key contains - Bank Master data contains Bank name, Region (State), Address

3) Bank key is assigned to a house bank.

4) GL a/c code is assigned to the house bank along with Account id.

5) Steps to create – House bank

i) Create bank master with bank key (E.g. – 01)

ii) Create House bank (E.g. – ICICI) – Enter House bank id, Country, Bank key, Contact person + telephone numbers.

iii) Create bank a/c – Enter House bank id already created (It will take bank address from already assigned bank key to that house bank id), Bank id (E.g. SB), Description (E.g.-Savings bank a/c), Bank a/c no, Currency, G/L a/c.

iv) Change G/L a/c – in tab -create/bank/interest, enter house bank id and Account id.

Summary

(a) Create -Bank key,

(b) Create house bank id and add bank key.

(c) Create bank a/c with Account id and assign GL a/c.

(d) Modify G/L a/c and assign House bank+Account id.

6) For every bank a/c G/L account must be created. This G/L account is assigned to the bank a/c and vice versa. Both accounts have to have the same account currency.

7) In the Customer/Vendor master record, the field “Bank Type” is used to distinguish between different banks.

8) Using the house bank id and the bank types the payment program determines the banks to be used.

9) Each bank a/c is reflected in the SAP system by a combination of house bank ID and account ID (bank type).

10) The bank group is used for classifying banks. The key is freely assignable. The aim of classification is to group banks together in such a way that payment transactions within a group can be carried out as fast as possible (payment optimization).

11) The SWIFT code is used for identifying banks in international payment transactions.

12) Every bank master record is identified by the bank country and bank key.