chapter 1-gl configuration

of 30

GENERAL LEDGER CONFIGURATION CHAPTER 1

Table of Contents

1 Introduction.................................................................................................21.1 Purpose.........................................................................................................2

2 Reference Documents................................................................................3

3 Configuration Settings...............................................................................43.1 Basic Customizing.........................................................................................53.1.1 Define Company (Trading partner)...............................................................53.1.2 Define Credit Control Area............................................................................63.1.3 Edit, Copy, Delete, Check Company code....................................................73.1.4 Assign company code to company..............................................................103.1.5 Assign Company code to Credit control area..............................................103.1.6 Maintain Fiscal Year Variant.......................................................................113.1.7 Assign Company Code to Fiscal year variant.............................................133.1.8 Define Variants for Open Posting Periods...................................................133.1.9 Assign Variants to Company code..............................................................143.1.10 Define Chart of Accounts............................................................................153.1.11 Define Retained Earnings...........................................................................173.1.12 Copy GL accounts from COA INT to Our COA...........................................183.1.13 Define Field Status Variant..........................................................................203.1.14 Define Document Types..............................................................................223.1.15 Define Posting Key......................................................................................233.1.16 Define Number rages..................................................................................253.1.17 Define Tolerance Groups for GL Accounts.................................................263.1.18 Global Parameters......................................................................................27

4 Other reference..........................................................................................284.1.1 Business Area.............................................................................................284.1.2 Functional Area...........................................................................................29

of 30

GENERAL LEDGER CONFIGURATION CHAPTER 11 Introduction

1.1 PurposeThe purpose of this Configuration document is to:

To help in create of a total FICO cycle

To enable additions to existing configuration

To give a quick understanding on FI GL to enable modifications if any in the near future easy.

A typical GL entry in SAP looks like.

of 30


Important fields used in the above entry:

Field Short descriptionConfiguration reference

Company Code Any limited company Section 3.1.3 of Chap1 4 Digit alphanumeric key 1010/1020/3020/3050 Fiscal year

Period

A business unit might be doing business from Jan-Dec , Apr-Mar or Jul-June

Section 3.1.6 of Chap1


Type (Document type) There are different business transactions like


SA - GL entry DR - Customer Sales nvoice KR - Vendor invoice DZ- Customer receipt KZ - Vendor Payment Document Number SA - 01 (0100000000 to 0199999999) Section 3.1.14 of Chap 1 DR - 18 (1800000000 to 1899999999) and section 3.1.16 KR - 17 (1700000000 to 1799999999) DZ- 14 (1400000000 to 1499999999) KZ - 15 (1500000000 to 1599999999) Posting Key 40- GL Debit Section 3.1.15 of Chap 1 50 - GL Credit 01- Debit customer 11- Credit customer 31- Credit vendor 21- Debit customer GL Master 100000- Petty Cash Account section 3.1.10 of Chap 1

476000 - Office expenses 800000 - Sales revenue Currency USD/GBP/INR/EUR Chapter 6

2 Reference Documents

We will be configuring FICO for Model group.

The FI-GL module is implemented for the following company codes:

2008 – Model Company Limited

of 30


3 Configuration Settings

3.1 Basic Customizing

3.1.1 Define Company (Trading partner)

Client :

The client is the highest level in the mySAP ERP system hierarchy. Specificationsor data that is valid for all organizational units in mySAP ERP applications (suchas exchange rates, for example) are entered at the client level. This eliminates theneed to enter this information more than once. Each client is an independentunit with separate master records and a complete set of tables and data. Usersmust enter a client key and have a user master record in the client in order to log

on to the system.

Company (Trading partner):

In an enterprise structure, it is placed at the highest level in hierarchy. This is nothing but the group company.

Via MenusEnterprise structure > Definition > Financial Accounting > Define Company

Via Transaction Code SPRO

Click on

of 30


Click on to save.

Figure 1 – Define Company (Trading partner)

Click on new entries

Figure 1A – Details of Company

Input the name of the company, Address and currency and save it.

3.1.2 Define Credit Control Area

Credit Control Area: This is the area where credits offered to the customers are maintained and monitored. One company code cannot be share the credit limit from credit control area other than the CCA to which it is assigned.

MODEL Group is using one credit control area.

Via MenusEnterprise structure > Definition > Financial Accounting > Define Credit Control area


Click on New Entries

of 30


Figure 3 – Define credit control area “2008”

3.1.3 Edit, Copy, Delete, Check Company code

Company Code:

A company code is an independent organisational unit in accounting that contains its own set of books of accounts from which financial statements (BS, P&L statement) can be drawn for legal purposes.

Since most government and tax authorities require the registration of a legal entity for every company, a separate company code is usually created per country.

Certain information is mandatory for creation of company code:

1. Currency

2. Language

3. Company code key ( 4 digit alphanumeric key)

4. Name & Address

Via MenusEnterprise structure > Definition > Financial Accounting > Edit, Copy, Delete, Check company code


of 30


Figure 3: Creation of Company code

Use Copy, delete, Check company code option to copy all properties from standard company code and modify Name & Address and other details.

Click on icon. You can see compilation, Followed by pop up.

Click on

Pop up comes up

Click on Yes.

Another pope up comes up

of 30


Click on Yes.

Another pop up comes up. Enter the relevant currency.

Ignore warnings for any number range inconsistencies.

Now use Edit company code option to change the company code, address etc.

Double click on the company code

of 30


And click on save icon. Click on icon and input the full address of the company code.

Figure 3A : Creation of Company code

3.1.4 Assign company code to company

Via MenusEnterprise structure > Assignment > Financial Accounting > Assign company code to company


of 30


Assign company code to company

Figure 5: Assign Company code to Company

3.1.5 Assign Company code to Credit control area

Via MenusEnterprise structure > Assignment > Financial Accounting > Assign company code to Credit control Area


of 30


Figure 5: Assign Company code to Credit control Area

In Model Group Only Company code 2008 is selling goods and Credit control area is assigned only to this company code.

3.1.6 Maintain Fiscal Year Variant

Variant Principle in SAP: Variant principle is SAP is very popular. It is very simple and easy to operate. There are 3 steps in nit

1) Create a variant

2) Populate it with values

3) Assign it to objects

Fiscal Year Variant: FYV is nothing but the accounting year for a co code. In SAP R/3 system FYV might be following English calendar year (January-December) or might not be following.

FYV contains the definition of Posting periods and special periods. Special periods are used for postings that are not assigned to time periods, but to the process of year-end closing. In total you can define 16 periods.

Via MenusFinancial Accounting( new) > Financial Accounting Global settings(New) > Ledgers> Fiscal Year and Posting periods > Maintain Fiscal year Variant ( Shortened fisc. Year)

Via Transaction Code OB29

of 30


Figure 6: Fiscal year Variant K4 provided by SAP (standard ) with 4 special periods

Year Dependant: If we intend to change the FYV in the subsequent years this need to be checked

Calendar Year: I f the FYV is from Jan-Dec, this need not be checked. If it is other than Jan to Dec, this needs to be checked

No of Posting Periods: It represents how many times we close our books accounts in a year. Generally it is 12.

No of Special periods: The periods used for year- end adjustments. SAP allows a max of 4 spl periods.

Here is an example of FYV for Jun-July and how the year shift needs to be manipulated to get the year we need.

of 30

GENERAL LEDGER CONFIGURATION CHAPTER 1Month Day Period

Year Shift

Year Shift

2010 20111 31 7 -1 02 29 8 -1 03 31 9 -1 04 30 10 -1 05 31 11 -1 06 30 12 -1 07 31 1 0 18 31 2 0 19 30 3 0 110 31 4 0 111 30 5 0 112 31 6 0 1

3.1.7 Assign Company Code to Fiscal year variant

Via MenusFinancial Accounting (new) > Financial Accounting Global settings(New) > Ledgers> Fiscal Year and Posting periods > Assign Company code to Fiscal Year Variant


Figure 7: Model companies are assigned to FYV K4

How to test the New FYV we create

1. Create FYV in OB29

2. Assign to co code OB37 or through OVY6

3. Book an invoice through F-02 or FB50 and check the FY

3.1.8 Define Variants for Open Posting Periods

of 30


Via MenusFinancial Accounting (new) > Financial Accounting Global settings(New) > Ledgers> Fiscal Year and Posting periods > Posting periods > Define variants for Open Posting periods

Via Transaction Code OBBO

Figure 8: Posting period Variants

Click on new entries and define Variant for Each company code.

3.1.9 Assign Variants to Company code

Via MenusFinancial Accounting (new) > Financial Accounting Global settings(New) > Ledgers> Fiscal Year and Posting periods > Posting periods > Define variants for Open Posting periods

Via Transaction Code OBBP

Assign Variants to Company codes as above

Use T code OB52 and open appropriate periods.

of 30


A - Assets

S- GL accounts

K- Vendors

D- Customers

M- Materials

“+ “ All the above put together. It is a must to have this in OB52.

How to test the New FYV we create

1) Create New PPV through OBBO

2) Assign PPV to co code OBBP

3) Open/close appropriate periods through OB52.

4) Try booking entry through F-02 for the relevant account type.

3.1.10 Define Chart of Accounts

Definition: COA contains the list of GL accounts. All the GL A/c’s are bundled together and kept in general + co code specific data in COA.

Via MenusFinancial Accounting( new) > General Ledger(New) >Master Data> G/L Accounts > Preparations > Edit Chart Of accounts List


Model Group uses Chart of Accounts 2008. Click on New Entries.

of 30


Click on . Definition of Chart of Accounts for Model group

Define Account Group

Via MenusFinancial Accounting( new) > General Ledger(New) >Master Data> G/L Accounts > Preparations > Define Account Group

Via Transaction Code OBD4

Account Group regulates the appearance of fields on the GL master data. We can design a field on the GL master to be

S- Suppressed

D- Display

R- Required

O- Optional

Click on icon. Replace INT with 2008 and press enter. Save the entries

GL Account groups for chart of accounts “2008”

Double click on anyone of the A/C Group rows to get the field status groups.

of 30

GENERAL LEDGER CONFIGURATION CHAPTER 1To get Field status for a Group, select the group and click on . This gives Groups and

double clicking on it, we can see the detailed field status for each field:

SDRO is the key word to remember the status.

Field status of Group CASH

3.1.11 Define Retained Earnings

Via MenusFinancial Accounting( new) > General Ledger(New) >Master Data> G/L Accounts > Preparations > Define Retained Earnings Account


Retained earnings are the difference between the revenue and expenses. We can design more than one RE accounts for COA.

Input Chart of Accounts when asked for

of 30


Ignore warnings if any.

When you run the balance carry forward program (using transaction code FAGLGVTR), the balances in P&L accounts are carried forward to the retained earnings account.

3.1.12 Copy GL accounts from COA INT to Our COA

Via MenusIMG > Financial Accounting (New) > General ledger Accounting (New) > Master data > GL Accounts > GL Accounts Creation and processing > Create GL accounts with reference


Enter your company code and reference co code as 0001. Save the entry

Select the row and click on icon

of 30


Click .

Another pope up comes up

Click on

All entries turn yellow.

Now…click on

Pop up comes up with errors and success records.

of 30


Double click on the company code

Press enter

Click on Save icon

Message

3.1.13 Define Field Status Variant

Via MenusFinancial Accounting( new) > Financial Accounting Basic Settings (New) > Ledgers > Fields > Define Field Status Variant

Via Transaction Code OBC4

While doing business transactions based on the GL account used fields might be required/optional/suppressed. Here is a simple illustration

GL code & Description Value date Cost Center Profit Center

100000- Cash Account √ X X476000- Office expenses X √ X

800000- Sales Revenue X X √

of 30


Field status variant has many field status groups. The FSG regulates whether for a given GL account, a field like text/assignment/CC/PC should be made as required or optional at transaction level. One FSG is assigned to each GL master.

Field Status Variant Path

Select FSV 1000 and click on . Rename the FSV as 2008 Field status as Model Field status variant

A message pops up as below.

Field Status Variant

Click on Copy All and save it.

Select FSV 2008 and click on Field Status Groups on the left.

of 30


Field Status Groups for FSV 2008

Select Field status group G001 and double click on the group.

It shows a summary of the group. Double clicking on the same will take us to details field status level.

Field Status for General data (G001)

How to test newly created FSV

1.Using Tcode FS00 to display the GL accounts

2. Make a note of the FSG on GL say 476000/113100 (Create/bank/interest tab)

3.Use T code OBC4 to go to FSV. Select your FSV. Select the FSG (G004/G005/G001). Double click.

4. Select General data >> Modify assignment/Text as required.

5. Book a transaction using F-02 on the above GL accounts. Check how the fields are regulated.

of 30


3.1.14 Define Document Types

Via MenusFinancial Accounting( new) > Financial Accounting Global Settings (New) > Document > Document Types > Define Document types for Entry View

Via Transaction Code OBA7

Document type controls:

1. Document header

2. Used to differentiate the business transaction to be posted ( Customer/vendor invoice, customer/vendor receipt, Journal entry, Asset transactions etc)

3. No range of document number

4. The account type allowed for posting

5. Field status of the header field ( Ref doc no & text)

6. If the invoices are posted with net method

Select a document type Say KR and click on Copy

of 30


Document type KE

Click on save. On the main page make sure to change the description of the doc type.

Note: Use OBZO to define the default doc types to be used for Enjoy transactions.

3.1.15 Define Posting Key

Via MenusFinancial Accounting( new) > Financial Accounting Basic Settings (New) > Document > Define Posting Keys


Posting Key Controls:

1. On which types of account (ASKDM) the transaction should be posted.

2. Whether the item is to be posted as debit or credit.

3. The status of the fields of additional details ( text/assignment etc)

Model Group uses standard posting keys provided by SAP. Very rarely there would be a need to create a new posting key. However, the field status would be configured to the business needs of a client.

For Instance, for posting key 01, 04 and 11, the XREF1 key field has been made “Ready for Input”

Select the posting key and double click on it.

of 30


Figure 15 – Posting Key 01 customization

Click on to get the field status regulation.

Figure 15A – Posting Key 01 customization

of 30


To get details particulars of fields attached a particular Field click on

Figure 15B – Posting Key 01 Field check details

Note: Use OBXJ to define the default posting Keys to be used for Enjoy transactions

3.1.16 Define Number rages

Via MenusFinancial Accounting( new) > Financial Accounting Basic Settings (New) > Document > Document Number ranges > Define Document number ranges for data entry

Via Transaction Code FBN1

Input the Appropriate company code and click on

Click on . A pop up screen appears.

of 30


Figure 16 – Number Ranges for FI documents

Input No range year from Number and to Number. Save it after that. Ignore messages if any.

>> Indicator which determines whether the number range interval is external or internal. External means the user will input manually.

3.1.17 Define Tolerance Groups for GL Accounts

Via MenusFinancial Accounting( new) > Financial Accounting Basic Settings (New) > Document > Tolerance Groups > Tolerance Groups for Employees data entry

Via Transaction Code OBA0

There are 3 types of tolerance groups:

1. Employee tolerance group

2. GL Account tolerance group

3. Customer/Vendor tolerance group

Figure 17 – Tolerance Groups for Users

We have assigned blank tolerance group for each of the company codes. Double click on any one entry

of 30


Figure 17A – Tolerance Groups for Users detailed screen

Please note the group is Blank. If need be we can create different Groups and assign as shown below.

3.1.18 Global Parameters

Via MenusFinancial Accounting( new) > Financial Accounting Basic Settings (New) > Global Parameters for Company code > Enter Global Parameters

Via Transaction Code OBY6

Select the company code and double click on it.

of 30


Figure 18 – Company code Global data

Make sure that the assignments done at various places are correct. COA, Company, Fiscal year variant, Credit control area, field status variant, posting period variant are to be carefully checked.

Please ensure to enter VAT registration no.

Click on icon on the left, the detailed address of the company codes opens up.

Make sure that this is correct. It gets printed in various correspondences and other important documents

4 Other reference

4.1.1 Business Area

Business Area: Business areas are independent area within an organization and can be used cross-company code. They are balancing entities that create their own set of financial statements for internal purposes. The use of business area is optional.

Via MenusEnterprise structure > Definition > Financial Accounting > Define Business Area


Click on New Entries.

Enter BA and description and save the entry. BA is not assigned to any co code.

of 30


4.1.2 Functional Area

Via MenusEnterprise structure > Definition > Financial Accounting > Define Business Area


Functional Area: Organizational unit in Financial accounting that classifies expenses of an Organization by function/department such as Marketing, Production, sales, Administration etc.

To create a new FA click on new entries and input the code and description.

Click on save icon.

chapter 1-gl configuration

Documents

gl credit

assign company code

company code143

company trading partner53

company trading partnerclient

credit customer

gl accounts263

gl debitsection