General Ledger Accounting

SAP End-User Training

Prerequisites

Prior to attending this course, you should have attended or

completed the following:
SAP Basic Navigation

2
Course Agenda

Introduction

Learning Objectives

Overview

General Ledger Overview

General Ledger Accounts

Profit Center

Park/Post Journal Entries

Accruals

Recurring Journal Entry

Reports

Month End Process

Approximate course time: 1 day

3
Introduction

Training Instructors
Housekeeping
Breaks
Restrooms

Introduce Yourself
Name
Department
History with AOI
Class Expectations

4
Ground Rules
Be mentally engaged
Assume best intentions when dealing with conflict
Remain open minded
Respect each others time including punctuality,
scheduling and communication
Be respectful in our use of electronics
One person speaks at a time with the attention of all
Offer input; everyone has value to add
Understand what is being said, or ask for clarification
No side conversations; its distracting and excluding
Leave mental baggage at the door
Enforce all ground rules
Share all relevant information within the allotted time
and park other ideas for later
Be Positive!

5
Project Overview
SCOPE OF PROJECT

Shop Floor Back Office

Finished Good Inventory Management

Raw Material Procurement
Sales Order to Cash cycle
Receiving
Logistics
Blending
Finance / Accounting
Processing
Treasury
Quality Control
Tax
Costing
Consolidation
Planning

Aug 08 Oct 08 Dec 08 May 09 Aug 09

US UK & Brazil Argentina Asia & Europe

& Africa
Guatemala

6
SAP Core Modules

7
Finance Overview

Other
Modules
Finance Other
Modules

Financial Controlling
Accounting (CO)
(FI)

Accounts Cost Element Cost Center Profit Center

Banks
Payable Accounting Accounting Accounting

Accounts General
Receivable Ledger

8
What is Master Data?

Master data is any information that is

considered to play a key role in the
core operation of a business.
AP
It may include data about vendors,
materials, customers, banks, general
ledger accounts, inventory, suppliers, TR AR
analytics and more.

Master data is shared by all AOI

groups across an organization and is Master
stored on one system. Data

GL OTC

MM

9
Who Will Enter Master Data?

Master data entry will now be centralized. There are only a few employees with
access to enter master data.

New master data records will go through a creation process that includes a request
form and approvals.

This new process will:

Streamline data entry
Avoid duplicates
Ensure better data quality
Improve business control and compliance

10
Course Learning Objectives

Upon completion of this course, you will be able to:

Understand the following areas/elements in SAP:
General Ledger Accounting
Profit Centers
Journal Entries
Recurring Journal Entries
Accruals

Perform SAP Transactions related to G/L Accounting

Run Reports related to G/L Accounting

11
Course Components

Concepts

Demonstrations

Exercises

Task support
Work instructions
Context sensitive help
Participant guides

Evaluation

12
13
Financials vs. Controlling

External
FI Requirements
Balance Sheet
Income Statement
Cash Flow

Internal
CO Requirements
Cost Center Reports
Sales & Profit Analysis

14
Components of the Financial (FI) Module

General Ledger Accounting

Accounts Payable

Accounts Receivable

Treasury

Asset Accounting

Consolidations

15
FI Account Integration
Generate standard
reports

AOI

Subledger General Financial

Statements
automatically Ledger
updates G/L

AR Fixed Assets AP
Subledger Subledger Subledger
Posted vendor
invoices update the
Account inquiry subledger
Invoices
Display balances & line items

Automatic Manual Reverse Held

Postings Postings Documents Documents

16
Organizational Units in FI

The Client
The client is the highest hierarchical level in the SAP System. Specifications that you make or data
that you enter at this level are valid for all company codes and for all other organizational
structures.
Each client is a self-contained unit with separate master records and a complete set of tables.

The Company
A company is the smallest organizational unit for which legal individual financial statements such
as balance sheets and profit and loss statements can be created according to the respective
commercial legislation.
A company can include one or more company codes.
The financial statements of a company are also the basis of a consolidated financial statement.

17
Organizational Units in FI (Cont.)

The Company Code

A company code is the smallest organizational unit for which complete, independent accounting
can be carried out.
A legally independent company is generally represented by one company code in the SAP System.
In accounting, you enter, save and process business transactions, and manage accounts
fundamentally at company code level. A further subdivision is possible via internal organizational
Units (Ex: Business Areas)

The Chart of Accounts

The chart of accounts is the second highest hierarchical level in the SAP System.
It is assigned to the company code.
It is a list of all natural accounts available to all company codes.

18
Organizational Structure

FI/CO - Organizational Structure

CLIENT

CHART OF ACCTS CHART OF ACCTS

CONTROLLING CONTROLLING
AREA AREA

COMPANY COMPANY COMPANY

CODE CODE CODE

19
Terminology

Company Code
Smallest organizational unit of external accounting for which a complete, self-contained set of accounts (COA) can be created. Similar to
what is now considered a legal entity.

Document
Representation of an accounting document or entry in the SAP system

Chart of Accounts
A framework of GL accounts for the recording of values to ensure an orderly rendering of accounting data. The operational chart of
accounts is used by financial accounting and cost accounting. The items in a chart of accounts can be expense or revenue accounts in
FI and cost or revenue elements in cost accounting. Each company code is assigned to a chart of accounts.

Profit Center
An organizational unit in Accounting used for Controlling purposes. Similar to what is now considered an origin.

Cost Center
An organizational unit that represents a defined location of cost incurrence. Similar to what is now considered a department.

Customer Master
Customer data that includes addresses, account balances, and credit limits that are maintained centrally to prevent duplication.

Vendor Master
Vendor data that includes addresses, payment details, and account balances of all vendors with which AOI conducts business. Vendor
master records are centrally maintained to prevent duplication.

20
Terminology (Cont.)

Posting Key
A two-digit numerical key that determines the way line items are posted. This key determines several factors including the account type,
type of posting (debit or credit) and layout of entry screens.

Account Group
Used to categorize accounts that have similar master data requirements. It determines the required master data needed for creating G/L
accounts. It also determines the number range in which the customer account should be placed, and whether that number is to be
assigned by the user or by the system.

Ledger
In G/L Accounting, you can use several ledgers in parallel. This allows you to produce financial statements according to different
accounting principles, for example.

Fiscal Year Variant

A period as defined by the financial calendar. The fiscal year variant contains the number of posting periods in the fiscal year and the
number of special periods. You can define a maximum of 16 posting periods for each fiscal year in the Controlling component (CO).

Posting Period Variant

You can specify which company codes are open for posting in a posting period variant. Posting period variants are cross-company code
and you have to assign them to your company codes. The posting periods are then opened and closed simultaneously for all company
codes via the posting period variants.

Reconciliation Account
Summary account for subledgers such as Accounts Receivable, Accounts Payable, and Asset Accounting. No direct postings to
reconciliation accounts are allowed.

21
Terminology (Cont.)

Cost Element
A cost element classifies the organization's valuated consumption of production factors within a controlling area. A cost element
corresponds to a cost-relevant item in the chart of accounts.

Primary Cost Element

A cost element whose costs originate outside of CO and accrual costs that are used only for controlling purposes.

Open Item Management

A stipulation that the items in an account must be used to clear other line items in the same account. Items must balance out to zero
before they can be cleared. The account balance is therefore always equal to the sum of the open items.

22
General Ledger Overview

General Ledger (FI-GL) is defined as the sub-module in which all of the financial accounting data for
the legal entity is recorded either manually or automatically through integrated processes.

Integrated with other application modules and FI sub-modules

Financial Data Entry

User-defined Balance Sheet / Profit and Loss Statement versions

Multiple Currencies

External Reporting

Includes General Ledger and Profit Center Accounting

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General Ledger Functionality

FI-GL General Ledger

Master records management: GL accounts

Document entry: direct posting, recurring posting, reverse posting, automatic posting,
drill-down capability

Periodic processing: closing, interest calculation, automatic clearing, foreign currency

valuation, Tax management, archiving

Reporting

24
General Ledger Overview
Organization Data: Foundation which must exist
before any master or transactional data can be Organization Data:
created Organizational
hierarchy, tolerances
Master Data: Data that is not changed frequently Master Data:
and represents things such as a Profit Center or a Material master,
vendor master
GL account
Transactional Data:
Transactional Data: Dynamic data representing Enter an invoice, run
MRP
business events in SAP

Organization Data Master Data Transactional Data

Company Code General Ledger Journal Entry

Master Record Vendor Invoice
Chart of Accounts
Vendor Master Record Document Reversal
Customer Master Credit Memo
Record
Customer Invoice
Profit Center
Closing
Cost Center

25
General Ledger Overview

26
Benefits of SAP General Ledger Accounting

Provides a comprehensive picture for external accounting and accounts

Automatic and simultaneous posting of all sub-ledger items in the appropriate general ledger accounts
(reconciliation accounts)
Simultaneous updating of general ledger and cost accounting areas
Real-time evaluation of and reporting on current accounting data
Integrated with all the other operational areas of a company and ensures that the accounting data is
always complete and accurate
Actual individual transactions can be checked at any time in real-time processing by displaying the
original documents, line items, and transaction figures at various levels like Account Information,
Journals, Totals/Transactional figures and Balance Sheet Evaluations, etc.

27
 Changing Processes

Current Process Future Process with SAP

Manual Entries are posted directly (in some locations) A park and post two-step process for manual entries will
be utilized. Also, there will be defined dollar amounts and
accounts that can be posted to.

Individual country is able to create its new accounts Chart of Accounts: Local accountants will not be able to
create new accounts. A request will have to be made to
the master data administrator at a central location.

Some countries dont currently require an account It is a requirement for an account number and cost center
number and cost center on a purchase order. to be entered in a purchase order.

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General Ledger Account Master Records

A General Ledger Account master record contains information about the account that
controls how business transactions are posted to it and how it is managed.

Once Components of the Chart of Accounts and Company Code segments have been
defined, a G/L Account master record is created.

A master record can be created in one step for both the Chart of Accounts and the
Company Code. This is known as creating the master record centrally.

29
Types of General Ledger Master Data

Accounts
Track the effect of transactions on a balance sheet or income statement

Type of GL account (balance sheet, profit and loss)

Used to manage debit and credit entries resulting from business transactions
affecting assets, liabilities, owners equity, revenues and expenses

Account groups
Used to categorize accounts that have similar master data requirements
Determine the required master data needed for creating GL accounts
Determine the number range in which the customer account should be
placed, and whether that number is to be assigned by the user or by the
system

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Organization of G/L Master Data
Every G/L account created is assigned to a Chart of Accounts (CoA)

One or more company codes can be assigned to a single Chart of Accounts known as the
Operational CoA at the Company level

G/L accounts contain both CoA-specific and company code-specific data

CoA-specific data include the:

G/L account name and number
Profit and loss or balance sheet account indicator
Account group

The account group specifies the account number range and determines the account field layout
(Required, Optional or Suppressed)

Company code-specific data include the:

Currency type and indicator
Tax information
Reconciliation account type

31
General Ledger Accounts

Chart of Company Code

Accounts Data Data

Acct Control
Name The G/L Account
Number is included in
both sections of the
Acct Management
master record
Group Account
Number
Document Entry
Control

Cash Management
Control

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General Ledger Account Currency
The currency for a GL account is specified in the company code screen

The system updates the account balances in the same currency in which the account is
posted

Postings can be made in any currency, but SAP only displays balances in the account
currency

Company Code segment of the G/L Account master record

Currency

33
General Ledger Accounts

G/L accounts have transaction figures that record changes to the account during
a posting period

G/L accounts are oriented towards external reporting

G/L accounts are classified as either balance sheet or income statement

accounts

Budgeting will be performed at a G/L Account level, by profit center

Postings to Expense/Revenue G/L Accounts require a cost object (Cost

Center/WBS Element/Profit Center), which provides additional information for
internal reporting

G/L Accounts can be Blocked for posting

G/L Accounts can be Marked for Deletion but not Deleted

34
General Ledger Accounts

Group
Chart of Accounts Chart of Accounts

Company Code Company Code

.
1010 7020

35
Parallel Accounting

SAP breaks the GL Account structure into 3 different fields:

Company Code:
4 digits
Formerly called Financial Entity
GL Account:
7 digits
Cost Center:
10 alphanumeric characters
Represents the department that is responsible for the cost

1010 6424000 10103601US

Company GL Cost
Code Account Center

36
Parallel Accounting

In SAP, each GAAP (Generally Accepted Accounting Principle) is

represented by a ledger.

Except for the Brazil, all the countries (company codes) will have two
ledgers for accounting transactions. (Brazil will have three ledgers).
Leading ledger i.e. local GAAP, general local (financial) year
Non leading ledger i.e. US GAAP and fiscal(financial) year

All the transactions will be made to leading ledger and will automatically
be flowed to non-leading ledgers.

However, for any adjustment for local requirements all countries will post
to only non-leading ledgers through specific transactions.

All the ledgers are also capable of providing reports in Group currency or
any other additional currency.

37
Profit Center Accounting

In SAP, a Profit Center is a bucket where revenues can be posted and costs
can be assigned, planned and reported on.

Each revenue-producing location will be represented by a profit center.

For AOI purposes, a profit center is an origin of tobacco and a profit center
group is a group of profit centers/origins, such as a region.

All revenue postings require a profit center.

All cost centers are associated to a profit center to allow for reporting such as a
profit and loss statement for a specific location.

Profit centers are not company code-specific.

Profit centers are assigned to the AOI Inc. Controlling Area (CAOI), which is the
main Controlling organizational unit and the only Controlling area AOI will have.

38
Profit Center Accounting

Profit Center Accounting enables internal profit to be

calculated for profit centers. It generates a balanced and
complete Balance Sheet and Profit and Loss Statement for
each Profit Center.

It also compares the overall period costs of the company or

profit center with the revenues and internal activities for the
same period.

It allows real-time evaluations, reporting and analysis on

posted plan and actual data.

39
Profit Center Accounting (contd)
AOI manages its business on an operational basis as well as a financial basis. Profit center
accounting is how management can monitor its business operationally.

Profit centers can be assigned to alternative hierarchical structures which are completely
independent of the standard hierarchy. These structures are called profit center groups.
Profit center groups represent a flexible view of the standard hierarchy and are used for
reporting, planning and allocations.

The standard hierarchy is a special type of profit center group. It is a tree structure which
contains all profit centers in a controlling area and reflects the organizational structure used
in Profit Center Accounting. The Standard Hierarchy AOI accounts for all profit centers and
is an entity to which all profit centers must be attached upon creation.

The master data of a profit center includes the name of the PC, the controlling area it is
assigned to, and the profit centers period of validity, as well as information about the person
responsible for the profit center, the profit centers assignment to a node of the standard
hierarchy, and data required for communication (address, telephone number and so on).

Profit Center Standard Hierarchy (KCH6N) is covered in FICO master data course.

40
Cost Center Accounting

Cost Center Accounting is utilized to collect and report operating activity

within an organizational unit.
A cost center is essentially a department within the company
Cost centers represent a distinct and separate accounting unit and may
be organized by area of responsibility, location, or activity-related aspects
Each cost center is assigned to the Controlling Area CAOI
Cost centers can be structured into multiple alternate hierarchies,
according to organizational/functional aspects
The cost center is the lowest level of the hierarchy expenses are rolled
up to superior levels
Cost Center Accounting covered in detail in the AOI Cost Center training
course

41
Cost and Revenue Element Accounting

Cost and Revenue Element Accounting provides you with

an overview of the costs and revenues that occur in an
organization.
Cost elements describe the origin of costs.
Cost Elements are at the center of all the transactional
activity in Controlling.
Each posting in Controlling is linked to a Cost Element
and at least one controlling object , such as a cost center
or an internal order or a WBS (work breakdown structure)
element.
Cost element are also links to the General Ledger in FI
module as no primary cost element can exist without its
General Ledger account first being created in FI.

42
SAP Tasks General Ledger Accounting GL Posting

Process (T-Code) Demo Ex

Enter & Park G/L Account Document (Journal Entry) FV50

Enter & Park G/L Account Document for Ledger Group FV50L

Parked Documents Post/Delete FBV0

Clear G/L Account F-03

Reversal Document for Individual Reversal FB08

Display G/L Account Balances (New) FAGLB03

43
Document Entry and Change Document

When you enter documents (such as a journal entry) the system checks whether
the minimum account assignments have been made, for example, document date,
posting date, document type, posting key, account number, and amount. If you
enter a key that is not defined in the system, the system issues an error message.
You have to correct your entry before you can enter any more documents. These
checks prevent incorrect, inconsistent, or incomplete entries from being made.

To be able to post the document, the debits and credits must balance to zero. This
updates the account balances. If the debits do not equal the credits, you can hold
the document, or park it until it is complete, without updating G/L account
balances.

You can change documents that have already been posted. However, the system
protects certain fields of a posted document from changes. This includes fields
such as: Amount Posted, Account, Posting Key, Fiscal Year, and Tax Amount.
Data in these fields cannot be changed since it has already led to an update of
account balances.

44
Park and Release Process

All manual journal entries will be posted through the Park and Release strategy,
regardless of the dollar amount

Parking a document stores the entry for processing at a later time, allowing
review and revision of postings before they affect the general ledger

Anyone who does a manual journal entry will park the document and the
document will be sent to his or her supervisor/manager for review and approval
before posting

Parked documents do not affect G/L account balances until they are posted

Parked documents can be stored, displayed, changed or deleted

Many fields in a parked document can be changed before the document is

posted to the general ledger, including amounts

Documents can only be posted by someone with posting authorization

45
General Ledger Account Posting (Journal Entry)

For manual journal entries, you enter your document header data
(document date, document type, company code, posting date, and
currency) and data for the individual line items.

The following two functions are available:

Enter & Park G/L Account Document
Enter & Park G/L Account Document for Ledger Group

These are both single-screen transactions, meaning that you can enter,
hold and park documents on one screen with a minimum amount of
entries.

Manual journal entries (G/L Account Postings) will be done using the
Park and Release Process

46
Enter and Park G/L Account Document - Journal Entry (FV50)

AOI will use this transaction to create and and park G/L account documents

For G/L Account Postings, you enter your:

Document header data, which includes document date, document type, company code, posting
date, and currency
Data for the individual line items

Demonstration and Exercise

Use the work instruction Enter and Park G/L Account Document to complete the exercise
scenario on the system
Refer to your data sheets for appropriate data

Demonstration Task
Exercise

47
General Ledger Account Posting Screen

Input Ex. Rate if necessary

Input G/L Account

from Chart of
Accounts
Select Debit/
Credit Indicator

Input cost center

Input amount

48
G/L Account Postings for Ledger Group

A ledger group is a collection of ledgers assigned to a group. With this function, you can post to a
specific ledger group. The document data is posted to all ledgers that are assigned to the ledger
group.

If your ledger group only contains one ledger, the data is only posted to that individual ledger.

The following conditions apply for the entry of G/L account documents for ledger groups:
The system only offers currencies that are assigned to the ledger or to the ledger group.
You cannot make postings to accounts that are managed on an open item basis.
You cannot make tax-relevant postings.
You cannot post to tax accounts directly.

49
Enter and Park G/L Account Document for Ledger Group (FV50L)

AOI will use this transaction to enter and park G/L account documents for a ledger group.

Demonstration and Exercise

Use the work instruction Enter and Park G/L Account Document for Ledger Group to complete the exercise
scenario on the system

Demonstration

50
Post/Delete Parked Documents (FBV0)

You can also post or delete parked documents in this transaction.

If you know the document number, enter the company code, document number, and FY.

If you do not know the document number, click the Document List box. On the selection screen that
follows, enter the appropriate selection criteria and choose Execute. The system then generates a list
containing the documents that match these criteria.

From there you can select the required document(s) and Delete.

Make sure to Save!

Demonstration Task
Exercise

51
Clearing General Ledger Accounts

The SAP System offers the following procedures for accounts with open
item management:
Posting with clearing
Manual account clearing

The following prerequisites must be fulfilled in order for open items to be

cleared:
The accounts must be managed on an open item basis.
The items to be cleared cannot trigger a posting, for example, cash discounts
or exchange rate differences.
The items cannot be special G/L transactions. You use special functions to
clear these items.

52
Clear G/L Account (F-03)

In this transaction, you can only clear open items from one account.

You can use this function to clear debits and credits that balance to zero (for
example, invoices and payments that you have already entered).

Result: The system assigns the clearing date and clearing document number to
each open item cleared.

Demonstration and Exercise

Use the work instruction F-03 Clear G/L Account to complete the exercise scenario
on the system
Refer to your data sheets for appropriate data

Demonstration Task
Exercise

53
Reversing a Document

There are times when a manual journal entry that has been previously
posted needs to be reversed. This can occur for a variety of reasons
such as to correct data entry errors, accruals, etc.

The main reason for doing a reversal is that some data field (such as
G/L account, cost center, vendor, customer) was entered incorrectly. If
you have entered an incorrect document, you can reverse it, thereby
also clearing the open items. However, AP invoices can't be reversed
once they've been paid.

Instead of User A creating another manual journal entry to reverse the

posted entry (which must then be parked, until approved and posted by
User B), the previously posted entry can just be reversed. Only a user
that is authorized to post a journal entry can reverse a journal entry.

54
Reversing a Document (contd)

In addition, the posting date and posting period of the reversal can be
manually entered if it should be other than the date and time period of
the physical reversal of the entry. If the reverse document cannot be
posted to the same period as the original document, enter the posting
date and the posting period of the reversing document.

In SAP, instead of entering a description, codes are used to indicate the

reason an entry needs to be reversed. These reason codes are
predefined in SAP. If the document to be reversed is a check payment,
you will also have to specify a void reason code. You can display
permitted void reason codes with the possible entries button. Reasons
1-3 can only be used by the system.

When reversing a document, the document and the reverse document

increase the account transaction debit and credit figures by the same
amount.
Reversal Document for Individual Reversal (FB08)

If necessary, a journal entry can be reversed.

This transaction will also be used to reverse an AP vendor invoice, payment

document or AR customer invoice, for example.

Demonstration and Exercise

Use the work instruction FB08 Reversal Document for Individual Reversal to complete the
exercise scenario on the system
Refer to your data sheets for appropriate data

Demonstration Task
Exercise

56
Display Balances New (FAGLB03)

You can display the balances of the individual posting periods for your G/L accounts. To do so, you
specify the ledger for which you want to display the G/L account balances.

To restrict the G/L account balances that are displayed, you can use the following selection criteria:
You can restrict the G/L account balances displayed to a G/L account or a range of accounts, to a company code or
a range of company codes, and to a fiscal year.
You can specify the ledger for which you want to display the G/L account balances. To select the ledger, click the
Choose Ledger box.
Free Selections: In Customizing, you can define up to five interactive characteristics, such as Profit Center, for
each ledger.
You can use existing worklists for G/L accounts or company codes. For this, click the Activate Worklist box.
You can save your selection criteria as a selection variant. The next time you start the account display, the
parameters you selected are already set. To save your settings, choose Goto Variants Save As Variant.

Demonstration and Exercise

Use the work instruction Display G/L Account Balances to complete the exercise scenario on the system
Refer to your data sheets for appropriate data
Demonstration Task
Exercise

57
Accruals

An accrual entry is created to record expenses incurred in the current period,

which will not be paid until the next period

Accruals are performed for reporting purposes so that period profits can be
accurately calculated

After an accrual is created in SAP, the Reverse Accrual Documents transaction

is performed, at the beginning of the next period, to reverse the accrual which
was posted when the expense was incurred

Accruals do not automatically reverse in the following period

The accruals are reversed with a batch job running the first day of every month
as part of the month end process

The reversal date of the accruals should always be the first day of each month

The document type xx has been created for accrual postings

58
Freight Accruals

Freight accrual will be made from the shipment cost document

Different scenarios where AOI will pay the freight for a sales order
Customer may ask AOI to pay the freight on their behalf and bill them on the invoice
for the sale
Freight cost is an AOI expense and will be paid by AOI
The freight cost is not known at the time of shipping and its a customer cost

The decision as to whether or not to accrue freight will be made on the terms of
sale.

The accrual for freight will be based on a shipment cost condition type which
identifies the account numbers. The amounts to accrue will be based on freight
rates and shipping points, which will maintained by OTC.

59
SAP Tasks General Ledger Accounting Other Posting Processes

Process (T-Code) Demo Ex

Create/Change Recurring Document Entry (FBD1/FBD2)

Posting Recurring Entries Execute (F.14)

Posting Recurring Entries Lists (F.15)

Automatic Clearing of Accounts (F.13)

60
Recurring Journal Entry
Recurring Journal Entries should/will be used for business transactions that are repeated regularly,
such as payment of rent or insurance. They impact the same accounts for the same amounts and
posting keys every month.

The following data never changes in recurring entries:

Posting key
Account
Amounts

Recurring Journal Entries will be exactly the same each time

Recurring Journal Entries are not posted to the system on creation, but stored as a transaction to be
posted at specific intervals

Recurring Journal Entries can be posted during the month-end closing process or during periodic
processing

Recurring Journal Entries cannot be used for cross-company transactions

If necessary, a recurring document entry can be reversed using transaction FB08.

61
Recurring Journal Entry (Cont.)

Change recurring documents

Similar to changing any other document, except that you can also
change the amounts in the individual line items and the recurring
posting data

Delete recurring documents

You must set the deletion flag in the header

You can display recurring documents:

To be carried out in a particular period
Not to be carried out in a particular period
To be carried out during the next run of the recurring entry program

62
Recurring Journal Entry (Cont.)

Enter data and

prepare recurring
document

Run recurring program

at specified times

Execute batch
input session
(accounts are updated)

63
Recurring Journal Entry (Cont.)
You enter a recurring entry original document once. In this document, you enter the data
necessary for posting accounting documents, such as the amount, account number, and
posting key. You also enter control information: Day of the first run, day of the last run, and
scheduling dates.

Recurring entries are posted through a separate process than other journal entries. The
recurring entry program at will be run at required intervals. The program selects any recurring
entry document whose next run data is the same as the date of the settlement period and
creates a batch input session. The posting of recurring entries should be based upon review of
the recurring entry list to review for any changes needed and timeliness of posting.

To enter a Recurring Journal Entry, the following information must be provided:

GL Account numbers
Posting frequency
Amounts
Posting keys (debit/credit)
First run and last run
Posting frequency
Document type

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Recurring Journal Entry Periodic Processing

Once the necessary information has been entered, the next step is to
use transaction F.14 to manually create posting documents from
recurring documents.
Document and posting dates are the same as the settlement period
It is not possible to execute the same settlement run twice
The settlement period has to agree with the frequency defined at the time the
recurring document entry is entered

The third step is to use transaction F.14 to post the recurring Journal
Entry into the SAP system
Only at this point the document is posted in SAP

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Create Recurring Document Entry (FBD1)

There will be a batch job which will post these documents periodically.

Demonstration and Exercise

Use the work instruction FBD1 Create Recurring Document Entry to complete the
exercise scenario on the system
Refer to your data sheets for appropriate data

Demonstration Task
Exercise

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Change Recurring Document Entry (FBD2)

Enter the number of a recurring entry document. If you do not know the
document number, you can search for it by choosing Document List.

To edit one or more line items, choose each line item and change the data
contained in it.

You can edit the document header to make changes in the document header
fields Reference and Doc. header text.

You can edit the recurring entries data and make changes in the following fields:
Next run on, Last run on, Interval in months, Run date, Run schedule, Number
of runs and Deletion indicator.

Make sure to Save!

Demonstration

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Posting Recurring Entries - Execute (F.14)

Create Posting Documents from Recurring Documents

This transaction is used to post recurring documents. The program

selects any recurring entry document whose next run data is the same
as the date of the settlement period and creates a batch input session.

To post the accounting documents and update the recurring entry

documents, you have to process the batch input session created by the
program.

Demonstration

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Posting Recurring Entries - Lists (F.15)

Use this transaction to view recurring entry original documents, when

there is a requirement to view recurring entries for a Company Code.

Recurring entries are set up to be posted in regular intervals in the

future. This process provides the ability to generate a list of all such
entries that have been set up.

This list can be used to identify changes to amounts or accounts

needed as well as a checklist to make sure all such entries are posted
at the right time.

Demonstration

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Automatic Clearing (F.13)

Automatic Clearing is used clear open items from customer, vendor and
G/L accounts automatically. This applies to GR/IR clearing accounts in
particular.

It selects all accounts specified in the value sets that have debit and
credit postings.

Only documents with a matching debit and credit will be cleared.

Demonstration

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Reporting

There are a variety of standard SAP reports which can be

run on-line or printed

To run a report it is necessary to set the report parameters

on the initial screen and then execute it to run it on-line

With most reports, it is possible to drill-down on the

individual line items and access the document entry screens
which generated the postings

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Reports

Reports Balances Line Items Document/Transaction

B/S PP &
& LL
111100 **** Bank

January 45,000,000 111100 **** Bank

February 670,000,000
March 45,560,000 13,000,000
April 784,000 15,230,000
70,197,000
7,000
23,000
347,000 Original
Document

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Reports
FAGLB03 Display Balances (New)

FAGLL03 Display/Change Line Items

S_PL0_86000028 Financial Statement Actual/Actual Comparison

S_PL0_86000029 Financial Statement Plan/Actual Comparison

S_PL0_86000031 - Transaction Figures: Account Balance

S_PL0_86000032 - Structured Account Balances

S_ALR_87012394 - Record of Use and Sales Taxes (USA)

S_ALR_87012301 - Totals and Balances

S_ALR_87012293 - Display of Changed Documents

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Reports (contd)

S_AC0_52000887 - Receivables: Profit Center

S_AC0_52000888 - Payables: Profit Center

S_ALR_87012346 - Recurring Entry Documents

S_ALR_87012347 - Line Items Extract

S_PL0_86000031 - Transaction Figures: Account Balance

S_PL0_86000032 - Structured Account Balances

S_ALR_87012326 - Chart of Accounts

S_ALR_87012328 - G/L Account List

S_ALR_87012317 - Open Item Account Balance Audit Trail from the

Document File
Month End Process

This process consists of activities involved in opening/closing

posting periods
Reviewing account balances
Reviewing open general ledger line items
Running G/L reports

Please refer to the month end cycle course materials for a list of all
activities required to close a period

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Summary

You now have an understanding of the important concepts and activities

that are used in SAP General Ledger Accounting. Now you should be able
to perform the following tasks:
Display General Ledger Account Master Data
Perform specific SAP FI-G/L transactions such as creating/parking journal
entries
Describe the concept of parking documents and utilizing the function
Create and maintain recurring documents
Reverse journal entries
Display G/L account balance and line items
Run various SAP reports related to G/L Accounting

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Where can I find Help?

3 Steps to Follow:

1. Context Sensitive Help in SAP

AOI Help in SAP will take you directly to the work instruction for the
t-code that you need help with. See next slide.

2. Super-users
Super-users will be identified from each department or location to help
you with your daily tasks after go-live.

3. Help Desk
Submit Help Desk Ticket to local IS Help Desk via phone or e-mail

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Context Sensitive Help in SAP

78
Questions and Answers

79
Thank You!

Thank you for making this class a success!

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