SAP FICO06 General Ledger Accounting Level 2

SAP Financials and Controlling
SAP FI: General Ledger

Accounting Level 2
Simplilearn Solutions
Objectives
2
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

Accounting Level 2
3
Payments Posting
Allocation Field for General Ledger Accounts

4
During document entry, the allocation field is populated
automatically onto line items, based on the default sort indicator set in
the master record.
The allocation field can be a combination of up to 4 fields with a
maximum of 18 characters.
It is possible to make a manual entry in the field allocation during
document entry to discontinue the default value.
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Manual Payment Process

5
A manual payment is a transaction that clears an open item, typically an

invoice, by manually allocating an offsetting amount to the open item.
An incoming payment, typically used in accounts receivable, clears an open
debit 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.
Document Header Payment Header

6
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Document Header Bank Data

7
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Document Header Open Item Selection

8
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Process Open Item

9
The first step in processing open

items is to activate the required
line items to allocate a payment.
The activation or deactivation of a
line item may be done in a
number of ways:
1. Edit options for open items: Set

2.
3.
flag to selected items initially

inactive.
Mouse click: Double-click the
mouse on the amount of the
required item.
Pull-down menus and function
keys: Select items and use pulldown menus or function keys to
perform functionality required.
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Posting the Payment

10
The last step is to do a final check of the document entered. By selecting the
overview option, the line items entered may be reviewed before posting.
Select document > Simulate > All line items (including any automatically generated)
If the debits do not equal the credits or there has been a mistake during
the entry, it can be corrected by carrying out one of the following

options:
o Changing, deleting, or entering a line item;
o Selecting additional open items; or
o Editing selected open items.
If the debits and credits balance, then the completed document may be
posted.
Automatic Postings for Clearing Open Items

11
If necessary, the system performs automatic postings when clearing open
items.
Bank charges may be entered when entering the bank item and are
automatically 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 assigned
to the combination of the clearing company code and the company code
which has to be cleared.
Resetting Cleared Items

12
Clearing transactions can be canceled for individual documents. When
cleared items are reset, the clearing data is removed from the line items.
The changes are logged and can be displayed in changed documents. In
accounts receivable, the payment history and the credit limit will be
corrected, if applicable.
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Tolerance Groups
13
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 provide
specifications for:
o
o
o
o
Clearing procedures;
Permitted payment differences;
Posting residual items from payment differences;
Tolerances for payment advices.
Configuration of Tolerance Group

14
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 currency
code.
o The group code is a four character alphanumeric code.
o A blank group code with company code and currency is considered as the
default 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 vendor
master record.
o If no tolerances are assigned, the default tolerance group applies.
Permitted Payment Differences

15
The specifications for permitted payment differences can be found in both

types of tolerance groups. They control the automatic posting of cash discount
adjustments and unauthorized deductions.
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Payment Differences
16
A payment difference normally occurs during the clearing of an open item. The
difference is then compared to tolerance limits of the employee and the
customer/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 be
processed 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.
Partial and Residual Payments

17
If the payment difference is outside tolerances, it has to be processed

manually.
Post the payment as a partial payment where all documents remain as open
items on the account.

Post the payment difference as a residual item where only the new residual
item is left on the account, clearing the original document and the payment. A
new document number is created referencing the original documents.
Post the payment difference as a difference posting to another account using
reason codes with automatic account assignment or do a manual account
assignment through the charge of the difference.
Reason Codes
18
Reason codes are used to describe the reason for payment differences. To
assign more than one reason code to a payment difference, click on

distribute 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.

Accounting Level 2
19
Cash Journal Overview
Cash Journal Assignment

20
The cash journal is a tool that was offered with R/3 release 4.6 to manage
cash. 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).
Setting Up the Cash Journal

21
To set up a new cash journal for a company code, enter the appropriate
values 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 are
to 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.
Business Transaction Types

22
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 Journal
o Bank to cash journal (C) Cash Journal/Bank
Accounts receivable (D):
o Customer-incoming payment Cash/AR

o Customer-outgoing payment AR/Cash
Accounts payable (K):
o Vendors-outgoing payment AP/Cash

o Vendors-incoming payment Cash/AP
Define a Cash Journal

23
There are two places where new cash journal accounting transactions
can 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.
Posting Business Transactions in

the Cash Journal
24
The cash journal has the form of a new ENJOY transaction. The screen is
divided into three sections:
Data selection;
Balance display;
Accounting transactions.
The cash journal is one of the new ENJOY-single screen-transactions: It is

possible 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.

Accounting Level 2
25
Mass Reversals and

Mass Changes
Mass Reversals
26
Use mass reversal to reverse more than one document at a time.
Accounting > Financial accounting > General ledger > Document > Reverse >
Mass reversal (F.80)
1. Give the company code
2. To reverse random numbers: Select multiple selection button beside
3.
4.
5.
6.
7.
8.
9.
document number
Under single values
Give document number
Select copy button
Reason for reversal: 01
Select test run check box
Execute
Select reverse document button
Mass Changes
27
As of SAP R/3 4.0, it is required to process a worklist using financial accounting

and asset accounting standard functions in order to carry out mass changes.
Step 1: Create a substitution rule to specify which fields need to be changed and how
to change them.
Step 2: Generate a list of assets to be changed (for example, by running a standard
report 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 a
predefined 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 not
assigned to any user.
Step 7: Check whether the mass change was successful by displaying the assets or
running an appropriate report.

Accounting Level 2
28
Processing
Documents
Create and Process Recurring Documents

29
For postings that recur on a regular basis, such as payments for rent or
interest, legal fees, and property taxes, use the recurring entry
program to have the necessary documents generated automatically.
The recurring business transactions must be stored in the system as
recurring entry original documents.

The recurring entry program must be started at regular intervals within a
specified period.
When the session is processed, a financial accounting document that
corresponds to the original document is posted, and the date of the next
posting is changed accordingly in the recurring entry original document.

Accounting Level 2
30
Treating Exchange Rates
Realized Exchange Rate Differences

31
When clearing open items in a foreign currency, realized differences may
occur due to fluctuations in exchange rates.

This fluctuation causes exchange rate differences that the system
automatically posts as realized gains or losses.
The system automatically posts to the revenue/expense accounts defined
for exchange rate differences in configuration, thus eliminating the
possibility of incorrect entries.
The realized difference is stored in the cleared line item.
Account Determination
32
All reconciliation accounts and all general ledger accounts with open
item transactions in foreign currency must be assigned to the

revenue/expense accounts for realized losses and gains.
One Gain/Loss account can be assigned to:
All currencies and currency types;
o Per currencies and currency types;
o Per currency; and
o Per currency type.
o

Accounting Level 2
33
General
Ledger Reports Overview
Accessing the Reports for General Ledger Accounts

34
Access important reports using the information system for each area such
as, 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 name
OR
Use F4 help and placeholders (for example, RFD*)
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Report Names for General Ledger Accounts

35
Work out the names of the standard reports from the letters they contain.
Example
o The name of the vendor account list is RFKKVZ00.
o The name of the customer account list is RFDKVZ00.
o The name of the G/L account list is RFSKVZ00.
The reports that start with RF are differentiated by account type.
Reports start with RFK (for vendors), RFD (for customers), RFS (for
G/L accounts), and RFB (for document reports).
To display program documentation, choose I.
General Ledger Information

System General Ledger Reports
36
The general ledger account balance list displays the selected totals figures
by reporting period.
It is possible to see:
o
o
o
o
o
o
The balance carried forward at the start of the fiscal year;

The total for the carry forward period;
The debit and credit total for the reporting period;
The debit and credit balances at the end of each reporting period;
The total for each company code;
The final total for all company codes for each local currency.
It is possible to choose a sorting method that also permits to summarize
data using summarization levels.
SAP List Viewer Line Item List

37
A generic display tool in intermediate general ledger that creates a
standard ergonomic list from predefined data.

Standardizes and simplifies the use of lists in the SAP system by
providing a uniform interface and list preparation function.
Display simple and
hierarchical sequential lists.
Contains a number of
interactive functions:
o Sorting,
o Summation,
o Filters, etc.
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SAP List Viewer Display/Change Documents

38
Select detail: To get detailed information for an item, select it first. The
eyeglasses icon can be used or double-click the item to display the individual
document.
Select items: To select an item, select it on the left side of the line item list. To
select multiple items, select a single item, hold Ctrl, and select the other items.
Carry out a mass change in
documents.
To see the changes in the line
item list, choose Refresh List.
Choose whether branch to the
document item view or the
document overview of the
document display.
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SAP List Viewer: Generic Functions for

General Ledger Accounts
39
Select columns: To select a column, click the column heading once. To select
multiple columns, select a column, hold Ctrl, and select the required columns. To
Sort the list in ascending or descending order, sort the list by selecting the
required column and then choosing the corresponding function. Filters can be
set and deleted the same way.
Summation: Totals and
subtotals for specific values can

be created. Create totals by
selecting the required column
and then choosing the
appropriate icon.
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SAP List Viewer Display Variants and Fields

40
Create own display variants.
Define own specific view of
a list.
Select fields that are to be
seen from the fields
available in the column
set.
Hide fields that are not
required.
Sort fields in the column
selection in the order
required.
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Classic List and Grid Control in the

Line Item List for General Ledger Accounts
41
ALV Classic List:
Essentially the print screen and offers a better overview of the sorted list
when the items for multiple accounts are displayed.
ALV Grid:
The grid control design has proportionate text and is particularly useful when the
individual accounts is displayed online for the Internet services offered by
SAP programs.
User Parameters for the List for

42
Display and modify the settings using transaction FB00, the accounting
editing options on the Line 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.
Line Item List for General Ledger Accounts

43
Use specific selection criteria to choose intermediate general ledger line
items 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 and
category.
It is also possible to choose the layout and maximum number of items

for the list output.
Selection of G/L Account

44
Use simple and multiple selection to include or exclude individual
accounts and account intervals from the selection.

If the Worklists Available field is selected, it is possible to activate and
deactivate the input fields for worklists on the selection screen for
each line item list.
Selection Using Search Help for

45
When general ledger accounts items are selected using search help, the
system offers input help for the vendor line item list.
It is possible to select general ledger accounts items for the line item list
based on their status and category.
When open items are selected, the general ledger accounts items that
are or were open at a specific time will be selected.
If Cleared Items are chosen, the system displays general ledger accounts
items that were cleared by the clearing date specified and that were
still open on the key date.
If open and cleared items are to be seen, then choose All Items. This
selection can be restricted using the posting date.
Head Office and Branch Accounts

for General Ledger Accounts
46
In the SAP system, head office and branch accounts can be set up.
All items posted to a branch account are automatically forwarded to the

head office account.
If the Branch/Head Office indicator is selected, a dialog box appears for
each branch account.
Choose whether the branch can display items that are managed at the
head office.
If the dialog box is deactivated, the setting made in the Items Managed at
Head Office field applies automatically.
Icons in General Ledger Accounts

47
In the header of the ALV classic list, it is possible to display the key
for the icons for the item status (Open, Parked, Cleared), as well as
the icons for the due date (Overdue, Due, Not due).
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Sort Criteria for General Ledger Accounts

48
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 Purchase Order Number sort key is selected in the customer/vendor master
record, then the assignment field will contain the purchase order number for
customers/vendors line items.
If the sort key for the Cost Center in a
G/L master record is selected, then
the assignment field will contain the
cost center for G/L account line items.
The line items in the line item display
are frequently sorted by the value in
the assignment field.
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Summary
49
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
Q and A
50
Knowledge Check 1
51
1.
State if the following statement is True or False.
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 the payment amount to form the clearing amount.
Knowledge Check 1
52
1.
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 the payment amount to form the clearing amount.
Answer: True
Explanation: The bank may charge bank charges for their services which
are 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 the
payment amount to form the clearing amount. This way, the payer always has
to pay the bank charges.
Knowledge Check 2
53
2.
With the cash journal tool, we can 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.
Knowledge Check 2
54
2.
With the cash journal tool, we can 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.
Answer: True
Explanation: The cash journal is a tool for managing cash that was offered
with R/3 release 4.6. It supports posting cash receipts and payments. With this
tool, we can 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
accounting. This number is a four-digit alphanumeric key.
Knowledge Check 3
55
3.

A payment difference normally occurs during the clearing of an open item.
Inside tolerances are posted automatically as either cash discount adjustment
Knowledge Check 3
56
3.

A payment difference normally occurs during the clearing of an open item.
Inside tolerances are posted automatically as either cash discount adjustment
Answer: True
Explanation: A payment difference normally occurs during the clearing of an
open item. The difference is then compared to tolerance limits of the employee
and the customer/vendor, and is handled accordingly. Inside tolerances are
posted automatically as either cash discount adjustment or unauthorized
deduction. Outside tolerances must be processed manually.
Knowledge Check 4
57
4.

It is not mandatory to assign all reconciliation accounts and all general ledger
accounts with open item transactions in foreign currency to the
Knowledge Check 4
58
4.

It is not mandatory to assign all reconciliation accounts and all general ledger
accounts with open item transactions in foreign currency to the
Answer: False
Explanation: All reconciliation accounts and all general ledger accounts with open item
transactions in foreign currency must be assigned to the revenue/expense accounts for
realized losses and gains. When clearing open items in a foreign currency, the realized
differences may occur due to fluctuations in exchange rates. This fluctuation causes
exchange rate differences that the system automatically posts as realized gains or losses.
The system automatically posts to the revenue/expense accounts defined for exchange
rate differences in configuration, thus eliminating the possibility of incorrect entries.
Knowledge Check 5
59
5.
Select the correct option and fill in the blank.

General ledger account reports start with ____.
a.
RFK
b.
RFD
c.
RFS
d.
RFB
Knowledge Check 5
60
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 reports
from the letters they contain. The reports that start with RF are
differentiated by account type. Reports start with RFK (for vendors),
RFD (for customers), RFS (for general ledger accounts), and RFB (for
document reports).
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SAP Financials and Controlling

SAP FI: General Ledger

After completing this unit, you will be able to:

SAP FI: General Ledger

Allocation Field for General Ledger Accounts

During document entry, the allocation field is populated

Manual Payment Process

A manual payment is a transaction that clears an open item, typically an

A manual payment is processed in three steps:

1. The document header information is filled out.

Document Header Payment Header

Document Header Bank Data

Document Header Open Item Selection

Process Open Item

The first step in processing open

1. Edit options for open items: Set

flag to selected items initially

Posting the Payment

the entry, it can be corrected by carrying out one of the following

Automatic Postings for Clearing Open Items

If necessary, the system performs automatic postings when clearing open

Resetting Cleared Items

Clearing transactions can be canceled for individual documents. When

In FI, tolerances are divided into two types:

o Upper limits for posting procedures (posting authorizations);

Configuration of Tolerance Group

Two steps have to be taken to use tolerance groups:

o Employee tolerance groups may be assigned to employees.

Permitted Payment Differences

The specifications for permitted payment differences can be found in both

Partial and Residual Payments

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

items on the account.

assign more than one reason code to a payment difference, click on

SAP FI: General Ledger

Cash Journal Overview

Cash Journal Assignment

Create separate cash journal for each currency;

Setting Up the Cash Journal

General ledger account postings;

Business Transaction Types

Standard accounting transaction types and their associated postings are:

o Customer-incoming payment Cash/AR

o Vendors-outgoing payment AP/Cash

Define a Cash Journal

can be defined: in the cash journal itself or in the implementation guide.

Posting Business Transactions in

The cash journal is one of the new ENJOY-single screen-transactions: It is

SAP FI: General Ledger

Mass Reversals and

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

As of SAP R/3 4.0, it is required to process a worklist using financial accounting

SAP FI: General Ledger

Create and Process Recurring Documents

recurring entry original documents.

SAP FI: General Ledger

Treating Exchange Rates

Realized Exchange Rate Differences

When clearing open items in a foreign currency, realized differences may

occur due to fluctuations in exchange rates.

item transactions in foreign currency must be assigned to the

SAP FI: General Ledger

Accessing the Reports for General Ledger Accounts

Report Names for General Ledger Accounts