(FIN01) Finance - General Ledger & Interco v1.0

General Ledger Accounting
PLI Business Transformation – Aligning Systems and Processes
SI COPY
30 November 2016
Design Confirmation Workshop
April 2017
© 2017 PETROLIAM NASIONAL BERHAD (PETRONAS)
All rights reserved. No part of this document may be

reproduced, stored in a retrieval system or transmitted in any
form or by any means (electronic, mechanical, photocopying,
recording or otherwise) without the permission of the copyright
owner.
©Petroliam Nasional Berhad (PETRONAS) 2017 1
Safety First: The Safe Way Is The Best Way
Where are We are on Level 27, Integra Tower

we? Meeting Room Urania 1
Presenters John Lee, Goh Song Ling

for the Day
Proceed to the front doors on both sides of the

Emergency
room and follow the instructions of floor safety
Exits
manager
Floor Safety
Managers

Session Ground Rules
Silent your phones during the sessions

and limit laptop usage to allocated breaks
only
Be punctual at all times
LISTEN to be heard
Speak up so that everyone can hear you

Objectives of Design Confirmation Workshop (DCW) in
the next 2 weeks
DCW is meant to…

• Design Adoption - Understand the PLI global design by business
functions and how it can be adopted globally
• Identify global gaps from the global solution based on business needs
• Assess the impacts of the gaps identified in terms of people, process,

data, technology and policy
DCW is not…
• DCW is not a training session – the intent is to understand the global
design. System training will be provided closer to deployment dates
• DCW is not a local requirement gathering session – remember that

we are here to confirm global design. Local requirements can be
highlighted but will be discussed separately by region based on the
agreed global design

Remember why you are here – PLI Global Design
Role Expectations
All Attendees Knowledgeable in respective functions, actively
participate in sessions and empowered to make decisions
GBPO Accountable for overall global design steer and sign off
AGBPO To inherit GBPO accountabilities when deputized
Functional To provide functional expertise/knowledge in assigned

Specialists area to achieve PLI’s global system design
Regional Business To understand and provide feedback on the global design

Representative from a regional perspective and highlight localization
requirements (legal/statutory)

How to get the most from your DCW session
Focus on our #1 objective - we are working

towards standardizing & unifying PLI businesses
globally
Listen with an open mind - consider changes

to your current way of working for the greater
good of PLI
Conduct constructive discussions - respect

each other’s opinions & keep conversations above
the line

3
Integrated Finance Operations Procurement
INT01: DCW Kickoff FIN01: Finance - OPS01: SCM PRO01: SCM
and Global General Ledger Operations - Plant Procurement -
Enterprise Maintenance & Prod Enterprise
APR Structure AM PM Master Data PM Structure PM
DCW Schedule – Week 1
4
Finance Finance Operations Procurement
FIN01: Finance - FIN08: Controlling OPS02: SCM PRO02 & PRO03:
General Ledger - CCA/PCA Operations - Plant SCM Procurement -
Work Management Master Data
APR AM PM
5
Integrated Operations Operations Procurement
INT03: Business OPS04: SCM OPS05: SCM PRO04: SCM
Partner (Vendor & Operations - Operations - Procurement -
Customer Master) Production Quality Direct Procurement
APR AM Execution AM Management PM PM
6
Finance Operations Operations Procurement
FIN02: Finance - OPS06: SCM OPS03: SCM PRO05: SCM
Accounts Operations - PP/QM Operations - Prod Procurement -
Receivable Reporting Planning, Indirect
APR AM Scheduling PM Procurement
7
Finance Integrated Operations Procurement
FIN03: Finance - INT06: Finance & DAT03: SCM PRO06: SCM
Accounts Payable SCM Procurement - Operations - Data Procurement -
Invoice Verification Migration Strategy Vendor Evaluation
APR AM PM AM AM

10
Commercial Finance Integrated Integrated
COM01: FIN06: Finance - INT07: SCM INT04: SCM Proc -
Commercial - Asset Accounting Procurement - Inventory & W/hse
Enterprise Requisition Mgmt (Raw Mat/ S-
APR Structure PM AM F, F) PM
DCW Schedule – Week 2
11
Commercial Integrated Finance Integrated
COM02: INT02: Commercial FIN04: Finance - INT05: SCM Proc -
Commercial - & Finance - Billing Cash & Banking Inventory & W/hse
Master Data (Spares/Generic/
APR AM PM Pckg) AM
12
Commercial Finance Procurement
COM03: FIN09: Controlling DAT04: SCM
Commercial - Sales - COPC / COPA Procurement - Data
Management &
APR Operations
Migration Strategy
PM
13
Commercial Finance Finance
COM04: FIN05: Finance - FIN07: Finance -
Commercial - Project Planning & Tax
Pricing & Rebate Control (WBS)
APR AM PM
14
Commercial Commercial Finance Finance
DAT01: COM05: FIN10: Finance - DAT02: Finance -
Commercial - Data Commercial & Period End Closing Data Migration
APR Migration Strategy
AM
Operations -
Logistics PM AM
Strategy
PM

Objectives of this Session:
FIN01: Finance – General Ledger
To understand and align the company code settings and its

1
implications
To align with a single chart of accounts and understand the

2
G/L master data maintenance
3 To understand the General Ledger design in S/4 HANA

Indicating your attendance
Verify sessions details – for each session, you’ll be provided

with an attendance acknowledgement sheet. Check the session
details
Indicate your attendance – fill in your

2 3
personal details and sign on the sheet
Record any localization requirements

or global design feedback – should
you have any local requirements that
needs to be addressed after
understanding the global design or
feedback on the global design, please
note it down here

Table of Contents
• Financial Enterprise Structure
• Manage G/L Master Data
• G/L Functionality
• Manage Transactional Data
• Reporting

Enterprise Structure In discussion – not finalised
PLI1
Chart of Account (Petronas Lubricant
International Chart of Account)
Company Codes
Asia China Europe Americas
PETRONAS PETRONAS Lubricants

PETRONAS Lubricants PETRONAS Lubricants
Lubricants China Argentina SA
International Sdn Bhd Belgium N.V.
Company Ltd. (AR10)
(MY10) (BE10)
(CN10)
PETRONAS Lubricants PETRONAS Lubricants PETRONAS

PETRONAS Base Oil Lubrificantes Brasil
Shandong Company France S.a.s.
(M) Sdn Bhd S.A
Limited (FR10)
(MY20) (BR10)
(CN20)
PETRONAS Lubricants PETRONAS Marketing PETRONAS Lubricants
(India) Private Ltd (China) Co. Ltd Deutschland Viscosity Oil Co.
(IN10) (CN30) (GE10) (US10)
PETRONAS Lubricants
Great Britain Ltd PL NA Mexico
(GB10) (MX10)
PETRONAS Lubricants
Italy S.p.A
(IT10)
PETRONAS Lubricants PETRONAS Madeni

Spain S.L.U Yaglar TIC LTD STI
(ES10) (TR10)
PETRONAS Lubricants PETRONAS Lubricants

Portugal Lda Poland Sp.Zo.o
(PT10) (PL10)

Multiple Fiscal Year, Parallel Currencies
Multiple Fiscal Year Conventions

Due to the difference reporting requirement (for country-specific GAAP) where there
would be different fiscal year (calendar year) compared to PLI fiscal year (January to
December).
Parallel Currencies
As more and more of PLI business go global, the requirement for reporting in multiple
currencies increases.
Local currency is used to represent the currency of the country in which the entity is
physically located or operates. Generally, local currency sets of books are used for
reporting financials in compliance with local GAAP / tax reporting purposes.
In addition to the need to report local currency, there is driver to consolidate the
operational view of all legal entities in “group” currency for management reporting
purposes such as performance appraisal.

In discussion – not finalised
Key Design Confirmation: Company Code Key Settings
• Proposed company code settings design
Reporting Reporting Country
Fiscal Year
Currency Currency Chart of
Controlling Company Company Name Country Local Group Variant
(1) (2) Account
Area Code ID Currency Currency
PLI1 MY10 0193 PETRONAS Lubricants International Sdn. Malaysia MYR USD EUR K4
Bhd.
PLI1 MY20 0315 Petronas Base Oil Malaysia Malaysia MYR USD EUR K4
PLI1 CN10 0104 PETRONAS Lubricants China Company Hong Kong HKD USD EUR *CNY K4
Limited
PLI1 CN20 0376 PETRONAS Lubricants (Shandong) Co. China CNY USD EUR *CNY K4
Ltd.
PLI1 CN30 0269 PETRONAS Marketing (China) Co. Ltd. China CNY USD EUR *CNY K4
PLI1 IN10 0306 PETRONAS Lubricants (India) Pvt. Ltd. India INR USD EUR K4
PLI1 US10 0422 Viscosity Oil Company USA USD USD EUR K4
PLI1 MX10 0466 PL NA Mexico S.DE.R.L.DE.C.V Mexico MXN USD EUR K4
PLI1 AR10 0421 PETRONAS Lubricants Argentina S.A. Argentina ARS USD EUR K4
PLI1 BR10 0420 PETRONAS Lubrificantes Brasil S.A. Brazil BRL USD EUR K4
PLI1 ES10 0417 PETRONAS Lubricants Spain S.L. Spain EUR USD EUR K4 
PLI1 PT10 0418 PETRONAS Lubricants Portugal LDA Portugal EUR USD EUR K4
PLI1 GB10Naming
0415 Conventions:
PETRONAS Lubricants Great Britain Ltd. Great GBP USD EUR K4
Britain
PLI1 IT10 0326 PETRONAS Lubricants Italy S.p.A. Italy EUR USD EUR K4
 Operating Chart of Account: PLI1
PLI1 BE10 0412 PETRONAS Lubricants Belgium NV Belgium EUR USD EUR K4 

PLI1 Group Chart of
FR10 0414Account:
PETRONASPLG
Lubricants France S.A.S. France EUR USD EUR K4 
PLI1 DE10 0413 PETRONAS Lubricants Deutschland GmbH Germany EUR USD EUR K4
PLI1 PL10 0416 PETRONAS Lubricants Poland SP. Z.O.O. Poland PLN USD EUR K4 
PLI1 TR10 0419 PETRONAS Madeni Yağlar Ticaret Limited Turkey TRY USD EUR K4 
Sirketi
USD is management accounting/group currency

Note: K4 – Calendar year from Jan to Dec
Document with Currencies
Local Group Reporting

Currency Currency Currency
Transaction
Currency

Table of Contents
• Reporting

General Ledger Process
• Overview of Manage General Ledger Accounting Process:
Maintain GL Manage GL
GL Reporting
Master Data Transactions
• Creating / • General ledger • General ledger

Amending of GL transactions reporting
master data processing and
approval
procedure

Overview of General Ledger (G/L)
• The General Ledger essentially serves as a complete record of all business transactions.
Being the centralized, up-to-date reference for the rendering of accounts.

19
SAP Chart of Accounts Overview

Group (PETH) and Operational (PLI1) Chart of Accounts

are linked together in the General ledger master data
Operational account is used Group account is used for
for transactional postings group reporting
Operational account to Group account

relationship is Many to One

Account groupings in Petronas Chart of Accounts

• Below account groupings from Petronas Holdings to be adopted.
Number Range Description

10000000 – 19999999 Balance Sheet Items
20000000 – 29999999 Operating Revenue
30000000 – 39999999 Human Resources Costs (e.g. Payroll, Employee Benefits, etc.)
40000000 – 49999999 Materials and Supplies Expenses (e.g. SWEC)
50000000 – 59999999 Purchased Services (e.g. SWEC, Non-SWEC, etc.)
60000000 – 69999999 Depreciation, Amortization, Impairment, Write-Off, Rental & Lease

Exp.
70000000 – 79999999 Other Administration Expenses (e.g. Insurance, Taxes, Royalties,
etc.)
Naming Conventions:
80000000 – 89999999 Other Expenses, Finance Costs, Income Tax Expenses (e.g.
FOREX)
90000000 – 99999999
 Group Chart Internal Allocation, Recovery and Reclassification (e.g. Cost
of Account: PLG
Allocation)

Key Design Confirmation: Chart of Accounts
Company Code Malaysia, China,

India, Italy, Brasil
Group Chart of Accounts PETH
Operational Chart of Accounts PLI1
Asset Liabilities Owner’s Income Expense

G/L Accounts Accounts Account Equity Accounts Accounts
Naming Conventions:
Reporting Purpose Financial Statement Versions
 Group Chart of Account: PLG

G/L Master Data Maintenance
PLI1 Operational account is used in the

transactional posting
The G/L account type determines how the G/L

account can be used in financial accounting
(FI) and controlling (CO).
PETH Group account number will be

maintained at G/L account level to align with
consolidated financial statement.

Example of Posting – Operational and Group accounts
• Below example displayed with G/L Account, Group Account Number
Sample of financial statement

displayed with group account
number, G/L account number and
country CoA number.

Key Design Confirmation: Chart of Account

Co.Code Company Name Group CoA Operating CoA CCOA
MY10 PETRONAS Lubricants International Sdn. Bhd. PETH PLI1 -
MY20 Petronas Base Oil Malaysia PETH PLI1 -
C N10 PETRONAS Lubricants C hina C ompany Limited PETH PLI1 -
C N20 PETRONAS Lubricants (Shandong) C o. Ltd. PETH PLI1 -
C N30 PETRONAS Marketing (C hina) C o. Ltd. PETH PLI1 -
IN10 PETRONAS Lubricants (India) Pvt. Ltd. PETH PLI1 -
US10 Viscosity Oil C ompany PETH PLI1 -
MX10 PL NA Mexico S.DE.R.L.DE.C .V PETH PLI1 -
AR10 PETRONAS Lubricants Argentina S.A. PETH PLI1 -
BR10 PETRONAS Lubrificantes Brasil S.A. PETH PLI1 -
ES10 PETRONAS Lubricants Spain S.L. PETH PLI1 ES10
PT10 PETRONAS Lubricants Portugal LDA PETH PLI1 -
GB10 PETRONAS Lubricants Great Britain Ltd. PETH PLI1 -
IT10 PETRONAS Lubricants Italy S.p.A. PETH PLI1 -
BE10 PETRONAS Lubricants Belgium NV PETH PLI1 BE10
FR10 PETRONAS Lubricants France S.A.S. PETH PLI1 FR10
DE10 PETRONAS Lubricants Deutschland GmbH PETH PLI1 -
PL10 PETRONAS Lubricants Poland SP. Z.O.O. PETH PLI1 PL10
TR10 PETRONAS Madeni Yağlar Ticaret Limited Sirketi PETH PLI1 TR10
Note: CoA – Chart of Accounts

CCOA – Country Chart of Accounts

Key Design Confirmation: Country Chart of Accounts

• Country specific chart of accounts is also called alternative chart of account. CCOA
is used in addition to the operating COA in a company code. CCOA contains all the
general ledger accounts that are required to meet the legal requirements of that
specific country for which it's created
• You can use Alternative Account Number to enter the account number from a
country chart of account.
• Proposed CCOA for below Europe countries to meet legal legislation:

• France
• Belgium
• Spain
• etc


• You can use Alternative Account Number to enter the account number from a
country chart of account.
• The financial statement can be displayed with alternative account number by selecting
below check box in selection screen.
v
Example of Posting with CCOA
• Below example displayed with G/L Account, Group Account Number

and Alternative Account Number.
Sample of financial statement

displayed with group account
number, G/L account number and
country CoA number.

To harmonize the OPU CoA with Petronas CoA, the
workflow is proposed

• Field Status Group (FSG) is independent of the company code, attaching instead to
the Field Status Variant.
• The field status group determines which fields are ready for input, which are required
entry fields, and which are hidden during document entry.

• The proposed Field Status Variant for PLI Group is – “PLI1”

Field Status Description
Group
Z001 BS General (with text, assignment)
Z100 Fixed Asset Accounts
Z101 Fixed Asset Accounts – Retirement
Z200 Bank Accounts
Z201 Inventory Accounting Material Stock Account
Z202 Reconciliation Accounts - Receivables
Z203 Goods/Invoice received clearing accounts
Z300 Reconciliation accounts - Payables
Z400 Revenue Accounts
Z401 Cost of Revenue
Z500 Cost Accounts
Z501 Material Supplies
Z502 Purchased Services

Field Status Group
• Different field status group
maintained in G/L master
will lead to have having
different fields displayed
during transactions posting.

Table of Contents
• Reporting

Key Design Confirmation: Parallel Ledgers

• Parallel accounting means that postings and financial statement reports are made
separately and simultaneously in accordance with all required accounting standards.
• Parallel Ledgers allows many organization to produce parallel sets of financial

statements in accordance with different financial principle such as US GAAP, IFRS etc.
• The leading ledger 0L is the main general ledger provided standard in system. Each
company has exactly one leading ledger and uses the local currency, fiscal year
variant, and posting variant assigned to the company code.
• PLI will used two (2) ledgers in parallel to produce financial statements in different
fiscal year.
Ledger Ledger Description Usage
Code
Use to capture reporting requirements for PLI group and

0L PLI – Group Ledger
will follow calendar year (Jan to Dec)
Use to capture local reporting requirements. For
Z1 PLI – Local Requirement example, India is having different fiscal year reporting
from Apr to Mar.

Parallel Ledgers – Example of Posting
Data Entry View is always refers
to Leading Ledger
General Ledger View is always

refers to Non-Leading Ledger

Parallel Ledgers
Example: India is having different fiscal year variant (Apr - Mar) with the rest of
company fiscal year variant (Jan – Dec). The non-leading ledger will provide a parallel
accounting with different set of reporting period for local requirement.

Key Design Decision: Segment

• Segment is a standard account assignment object, as part of SAP General Ledger.
• Segment can be used to represent your business segments based on product

lines.
• Segment can be viewed as a group of profit center to provide a better reporting

flexibility.
• Direct posting to Segment is not possible. Segment should be derived from profit
center only. For this purpose, profit center and segment functionality will be
utilized to provide ‘Segment Reporting’.
• Proposed segments will be setup in S/4 HANA:
Segment Description
S1000 Lubricants
S2000 Base Oil
S3000 Car Care
S9000 General

Segment
• Segment will be derived from Profit Center and Profit Center will be derived from
Cost Center. Cost Center  Profit Center  Segment
• Multiple profit center can be assigned to a segment (N:1 relationship)

Functional Area Overview
• An organizational unit in accounting that classifies the expenses of an organization by

function such as Administration, Sales & Distribution, Marketing and so on. This
classification takes place to meet the needs of cost of sales accounting.
• Functional areas are used to classify the expenses and revenues by function to
provide cost of sales accounting.
• The ‘Functional Area’ dimension is included in General Ledger Accounting for which
generating the financial statement for functional area is possible.
• Currently PLISB is having below functional areas for reporting purpose:

• Cost of Goods Sold – 2110
• Sales & Distribution – 3100
• General Administration Expenses – 4000
• Functional area is deriving from G/L master and Cost Center master. Is there a need to
manually re-class functional area?

Key Design Decision: Functional Area
• Proposed functional areas to be setup based on CRP:
No. Functional Description No. Functional Description

Area Area
1. 1000 Revenue 16. 2172 Development - Development Cost
2. 2110 Product Cost 17. 2180 Others
3. 2120 Production Sharing Payments 18. 2200 Cost of Utilities
4. 2130 Royalties 19. 2300 Cost of General Merchandise
5. 2140 Processing and Refining 20. 2400 Cost of Services
6. 2151 Producing Expenses 21. 2500 Cost of Shipping
7. 2152 Amortization and Depreciation 22. 2600 Cost of Sales & Rental Properties
8. 2153 Fixed Manufacturing Expenses 23. 3100 Distribution & Supplies Expenses
9. 2154 Variable Manufacturing Expenses 24. 3200 Selling & Marketing Expenses
10. 2161 EXP-G&G 25. 4000 General Admin Expenses
11. 2162 EXP-G&A 26. 5000 Other Operating Expenses
12. 2163 Exploration - Well Cost 27. 6000 Other Operating Income
13. Exploration - Impairment Loss on 28.
2164 7000 Finance Cost
Well
14. 2165 Exploration - Exploration Fund 29. 8000 Taxation
15. Development - Pre-Development 30.
2171 9000 Dividend
Cost

Functional Area
• The assignment of functional area is at cost center master data and Revenue G/L
master data

Segment and Functional Area Reporting
• T-code: S_ALR_87012284 Financial Statement
• Segment and functional area to be entered at the Dynamic Selection view to produce
relevant report.

Document Splitting Overview
• Document splitting is an automated procedure for organizing line items in the

document according to the selected dimensions, for example profit center.
• The document splitting will have the zero-balance setting for profit center and
segment dimension which will create additional clearing lines in order to balance each
associated segment within the document.
• With document splitting, accounting line items are split according to specific
characteristics. In this way, you can create financial statements for entities such as
‘Segment’ and meet the legal requirements.
• For PLI Group, the document splitting procedure should be used to draw up financial
for ‘Segment’ and for ‘Profit Center’.

Document Splitting
Example: PLI post a vendor invoice for service, and there is only one vendor open item
but potentially many cost items with the different cost centers and profit centers. The
document split function will separate the invoice line-item in many several items in
proportion of the cost for each profit center.
Example of Document Splitting:

Account Debit Credit Cost Profit Segment
Center Center
Vendor 100
Expense 1 30 CC-1001 PC-1001 SEG-1
Account Debit Credit Cost Profit Segment

Center Center
Vendor 30 PC-1001 SEG-1
Vendor 70 PC-0202 SEG-2

Document Splitting – Entry View (Scenario 1)
Vendor invoice is having 2 lines item of

expenses with different cost centers.
The cost center will then derive profit

center and segment.
Segments are inherited from the

expenditure line items:
• Profit center is derived from cost center
master data
• Segment is derived from profit center
master data

Document Splitting – Entry View (Scenario 2)
In order to prepare complete financial

statement for a specific characteristic, then
document splitting with Zero-Balancing
option is required.
The zero balance setting creates additional

clearing lines in order to balance each
associated Segment within the document.
After document splitting, system validates

whether the document is zero-balanced for
the selected characteristic (profit center and
segment). If it is not balanced, system
creates a balancing entry using a Zero-
Balance clearing account.

Exchange Rates
• FOREX update will be conducted on a daily basis at a specific time interval (e.g.
Scheduled to run at 8:30am (GMT+08:00) Kuala Lumpur) by Integrated Financial
Shared Service Center (IFSSC). This automated exchange rate update is currently
being used by PLISB and PBOM.
• The source of exchange rates is from Reuters which consisting of 97 pairs which will
then be converting further to 401 pairs which will be uploaded to the system.
• There will be NO exchange loading on Saturday, Sunday and public holiday in Malaysia.

Key Design Decision: Exchange Rate Type
• All exchange rates will be obtained from IFSSC and updated by upload
program to S/4 HANA system on daily basis with exchange rate type M.
A custom program required to enable this automation exchange rate
upload.
• Custom exchange rate will be maintained to meet exchange rate required

by local central banks.
• ZCN – China central bank rate to be maintained annually on 31-Dec
for foreign currency revaluation purpose
• ZIN – India central bank rate to be maintained on-need basis for
foreign currency transactions.

M – International Bank Rate
Z* - Local Bank Rate
Key Design Decision: Exchange Rate Type Countries with Central bank
requirement – can Europe use
Bank of Europe rate?
Do we need to have reporting

currency EUR with group M rate
and local central bank rate?
Co.Code Company Name Transaction Exchange Co.Code Group Reporting Reporting

Currency Rate Type Currency Currency Currency (1) Currency (2)
MY10 PETRONAS Lubricants International Sdn. Bhd. JPY M MYR USD EUR MYR
MY20 Petronas Base Oil Malaysia JPY M MYR USD EUR MYR
C N10 PETRONAS Lubricants C hina C ompany Limited JPY M HKD USD EUR HKD
C N20 PETRONAS Lubricants (Shandong) C o. Ltd. JPY ZCN C NY USD EUR C NY
C N30 PETRONAS Marketing (C hina) C o. Ltd. JPY ZCN C NY USD EUR C NY
IN10 PETRONAS Lubricants (India) Pvt. Ltd. JPY ZIN INR USD EUR INR
US10 Viscosity Oil C ompany JPY M EUR USD EUR EUR
MX10 PL NA Mexico S.DE.R.L.DE.C .V JPY M MXN USD EUR MXN
AR10 PETRONAS Lubricants Argentina S.A. JPY ZAR ARS USD EUR ARS
BR10 PETRONAS Lubrificantes Brasil S.A. JPY ZBR BRL USD EUR BRL
ES10 PETRONAS Lubricants Spain S.L. JPY ZEU EUR USD EUR EUR
PT10 PETRONAS Lubricants Portugal LDA JPY ZEU EUR USD EUR EUR
GB10 PETRONAS Lubricants Great Britain Ltd. JPY M GBP USD EUR GBP
IT10 PETRONAS Lubricants Italy S.p.A. JPY ZEU EUR USD EUR EUR
BE10 PETRONAS Lubricants Belgium NV JPY ZEU EUR USD EUR EUR
FR10 PETRONAS Lubricants France S.A.S. JPY ZEU EUR USD EUR EUR
DE10 PETRONAS Lubricants Deutschland GmbH JPY ZEU EUR USD EUR EUR
PL10 PETRONAS Lubricants Poland SP. Z.O.O. JPY M PLN USD EUR PLN
TR10 PETRONAS Madeni Yağlar Ticaret Limited Sirketi JPY M TRY USD EUR TRY
M M/Z?
M
Exchange Rate Type with Example
Example 1: Document Currency in USD
Transaction Sales Purchase
Company PBOM PBOM PBOM PLI GB PLI GB PLI GB PLI GB
1.Document 4.Document
Currency Type 2.Local Currency 3.Group Currency 5.Local Currency 6. Group Currency 7. Hard Currency
Currency Currency
Currency USD MYR USD USD GBP USD EUR
Translation taking Translation taking Translation taking source

source currency source currency currency
Source
No translation No translation
Currency ( Convert from 4
(Convert from 1 using ( Convert from 4 using GB
using GB Local
PLI International rate) Local Bank Rate )
Bank Rate )
Exchange Rate
M Z Z
Type
Consolidation, Consolidation,
Europe Consolidation,
Tax & Statutory Elimination Tax & Statutory Elimination
Use
Reporting Reporting Depreciation and Material
( Map to 6 ) ( Map to 3 )
Ledger
Example 2: Document Currency in GBP

Transaction Sales Purchase
Company PBOM PBOM PBOM PLI GB PLI GB PLI GB PLI GB
1.Document 4.Document
Currency Type 2.Local Currency 3.Group Currency 5.Local Currency 6. Group Currency 7. Hard Currency
Currency Currency
Currency GBP MYR USD GBP GBP USD EUR
Translation taking Translation taking Translation taking Translation taking source
source currency source currency source currency currency
Source
(Convert from 1 No Translation ( Convert from 4
Currency (Convert from 1 using ( Convert from 4 using GB
using PLI using PLI
PLI International rate) Local Bank Rate )
International rate) International rate )
Exchange Rate
M M M Z
Type
Consolidation, Consolidation,
Europe Consolidation,
Tax & Statutory Elimination Tax & Statutory Elimination
Use
Reporting Reporting Depreciation and Material
( Map to 6 ) ( Map to 3 )
©Petroliam Nasional Berhad (PETRONAS) 2017 Ledger 52
Key Design Decision: Exchange Rate Maintenance

• Exchange rate worklist can be maintained to restrict the user access to the
exchange rates of specific currencies for which he or she is responsible. A
worklist is useful when there is a need to update an exchange rate
manually by the user for specific sets of currencies.
• Exchange rate worklist can be accessed by using TCURMNT or

S_B20_88000153.
The red light for worklist ZPLI

appears because the maintenance
interval for ZWL1 is daily and there is
no exchange rate entered for ZPLI
While ZPL3 maintenance interval is

specified as Not to be maintained
regularly, the system does not
expect any specific interval for
exchange rate maintenance for ZPL3.
Therefore, the status for ZPL3
appears as green
• OPU to confirm if any specific exchange rate to be controlled and updated

by authorized personnel.

Table of Contents
• Reporting

G/L Transactions
• Standard SAP transaction codes to enter and park journal entries

Manage G/L Transactions
Types of Journals in SAP
Standard journal: The journal is entered and posted in a single step.
Parked Journal: The journal is parked in a first step. Once all the information is
complete, the parked journal can be posted. It can also be used if you want to put in
place an approval process. A document number is assigned.
Accrual/Deferral journal: recognize an expense/revenue incur for the current period

without actual supporting document, this expense/revenue entry will reverse in the next
period when the actual invoice/receipt is delivered.
Recurring Journal: A Recurring journal is established based on an ongoing business

transaction that occurs on a regular basis, such as rental payments and insurance
premiums.
Reversing Journal: A document can either be planned reversal, or if errors are

detected. A separate accounting document is created and posted to reverse the original
document. The reversing document number is stored on the original document header.

Manage G/L Transactions Process Flow
Process No.: 8.7.1.1 - Post Journal Entry
Tcode: FB50/ FV50
Tcode: FBD1/ F.14 Tcode: F.81
Tcode: FB08/ F50

• All G/L transactions which are made to the SAP General Ledger have the following key
characteristics:
• Document Type
• Document Number
• Company Code
• Each G/L transaction creates a unique document (journal) in SAP.
• Document Types provide the following functionality to the business:

• Differentiation (Analysis) of the source transaction on the ledger e.g. Asset
accounting document, Accrual document, Vendor invoice etc.
• Controls on how postings should occur against the document type e.g. which account
types, for use in batch input only.

In order for PLI to create financial transactions in SAP, we need to consider the following
first:
Define Document Type – this is used to classify financial transactions in the system.
The document type controls the following:
• Number range – range of document number that will be generated during

successful posting in the system. PLI will adopt exact number range using in
ECC6.
• Account Types Allowed – we define what type of accounts (e.g. customer,

vendor, G/L, asset, material) is allowed for the document type.
• Required during document entry – here we specify if the header text or

reference field are mandatory when posting with this document type.
• Reverse document type – document type that system automatically uses

during reversal transaction. In this case, PLI will follow the document type of
the original document.

In discussion – not finalised Type NR Description Document No. Range Reversal
Key Design Decision:

DT
AA 96 Asset Posting 9600000000 9699999999
Document Type AB 01 Accounting Document 100000000 199999999 AB
AF 16 Depreciation Pstngs 1600000000 1699999999 AF
• Document type is used to distinguish DA 23 Customer Document 2300000000 2399999999 DA

DB 20 Payment's reversal 2000000000 2099999999
between different business transactions and DN 22 Customer Credit Memo 2200000000 2299999999 DJ
to classify the accounting documents. It is DR 21 Customer Invoice 2100000000 2199999999 DI
also used to determine the number range DW 71 Penalty Actual 7100000000 7199999999
for documents and accounts types such as DI 20 Rev.- manual invoice 2000000000 2099999999
asset, materials, vendor, customer, etc for DJ 20 Rev.- manual cr memo 2000000000 2099999999
posting. DX 71 Penalty Accrual 7100000000 7199999999
DZ 14 Customer Payment 1400000000 1499999999 DB
FX 71 FX Revaluation 7100000000 7199999999
• Document number range will be setup as GT 71 GST settlement 7100000000 7199999999
year dependent. KR 65 Vendor Invoice 6500000000 6599999999
KZ 67 Vendor Payment 6700000000 6799999999 KZ
ML 47 ML Settlement 4700000000 4799999999
• *Highlighted document types are PR 48 Price Change 4800000000 4899999999
related to accounts payable and PU 56 Payroll AP Inv 5600000000 5699999999
accounts receivable which will be RE 60 Invoice receipt 6000000000 6099999999 RE
discussed and confirmed in respective RG 61 General Invoice 6100000000 6199999999
DCW RV 01 Billing Doc.Transfer 100000000 199999999 RV
RY 57 FI-CO Recon. Doc. 5700000000 5799999999
SA 71 G/L Account Document 7100000000 7199999999 SA
SC 73 Accrual entry 7300000000 7399999999 SV
SV 74 Accrual reversal 7400000000 7499999999
TZ 32 Treasury FSCM 3200000000 3299999999 TZ
WA 49 Goods Issue 4900000000 4999999999
WE 50 Goods Receipt 5000000000 5099999999
WI 49 Inventory Document 4900000000 4999999999
WL 49 Goods Issue/Delivery 4900000000 4999999999
ZV 20 Payment Clearing 2000000000 2099999999 ZV
ZZ 99 Conversion Document 9900000000 9999999999
Journal Entry
• Post journal using FB50, F-02
Document Number = 5100000027

Company Code = MY10
Document Type =
RE - Invoice

G/L Transactions
• Parallel ledgers setting allow you to post accounting standard-specific

postings are made to specified ledgers only
FB50L

Table of Contents
• Reporting

G/L Key Reports
• Drill down report

G/L Balance Display
• Report available for company code, parallel ledger, segment,
(FAGLB03) profit center and functional area.
• Line item display for given G/L

G/L Line Item
• Report available for company code, parallel ledger, segment,
Display (FAGLL03H) profit center and functional area.
G/L Account • Balance display
Balances • Report available for company code, parallel ledger, segment,

(S_PL0_86000030) profit center and functional area, different financial statements.

New Line Item Transactions Codes (1/3)
• Line item browser report transaction codes are available in SAP S/4HANA Finance
only. These line item browser transactions speed up the closing process since they have
various functionalities in terms of performance, download, and aggregation of data in
different views.
S/4 HANA T- Description Corresponding Description

Code Current Line
Item T-Code
FAGLL03H G/L Line Item Browser (G/L FAGLL03N General ledger (G/L)
View) account line items (new)
FBL3H G/L Account Line Item FBL3N G/L account line items
Browser
FBL1H Vendor Line Item Browser FBL1N Vendor line items
FBL5H Customer Line Item Browser FBL5N Customer line items
KE5ZH PCA Line Item Browser KE5Z Profit center: actual line
items

FAGLL03H
66
This is one of the features that saves

time for users because in the current line
item report transactions users need to
run the report, then, after displaying the
report, they have to select the file to
save it to the respective path. Since the
line item browser report execution is fast
in SAP S/4HANA, you can download
reports quickly. Also an additional feature
allows you to directly execute the report
and send it to the application server,
which was not possible in the current line
item report transactions. You have to
manually download the file and then
again manually upload it to the
respective application server.
67
G/L Account Balances
S_PL0_86000030 • G/L balances can be viewed by

functional area, segment and
profit center by ledger.
68
Key Design Decision: Financial Statement
S_ALR_87012284 • Financial statement version

will be created to meet the
reporting requirement
based on the operating
chart of account.
• Proposed naming
convention for financial
statement by following
company code.
69
G/L Reporting

Requirements
No. Description Type Raised By Comments
1 Journal upload tool Program Ananthi / There is an existing journal

Munirah upload program in ECC6 which
might need to enhance.
2 Local exchange rates from local central bank Configuration Guo Jie Can be fit by custom exchange
rate type
3 Local ledger Configuration Manish India is having different fiscal
year variant (Apr – Mar)
4 Single operational CoA Configuration All Same CoA assigned to all
company codes
5 Local CoA Configuration Europe Maintain local CoA by utilizing
alternative account number
6 Standardize document type Configuration All Same document types applied for
all company codes
7 Non-PLI legal entities/ Country Marketing Office Scope Hasni To capture it as additional scope, to
(CMO) be discussed further
8 Park and approve document System Raffaela To consider the document number
Requirement in chronological
9 Accrual/prepayment aging report System Hasni,
Requirement Munirah
10 Document type currently are defined based on System Europe
the intercompany/ 3rd party transactions to Requirement
post to relevant VAT registers
Attached discussion points recognized during DCW session

Interface
No. Description Type Raised By Comments
1 Exchange rate upload tool Program

Business Impact Assessment (BIA)
WHAT IS THE BIA?
The BIA is used to identify key impacted areas (system & business processes)
which will then be used as input for tailored change management interventions
where needed
HOW ARE WE COLLECTING DATA FOR THE BIA?
I. For system changes – II. For business process &

the project team will role changes – input
leverage on the Global from participants on the
Design Template, the changes if applicable via
main outcome of the this BIA Questionnaire
DCWs
HOW YOU CAN CONTRIBUTE IN 10 MINS!
 Help us complete the BIA Questionnaire by clicking on the link sent to you via email Subject:
BIA Questionnaire or scan the QR code above
 It is accessible via mobile and desktop
Thank You
Please spend 10 minutes to submit the Business
Impact Assessment and Session Feedback Form
Scan QR code below or visit http://goo.gl/iuhQfP

(FIN01) Finance - General Ledger & Interco v1.0

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General Ledger Accounting

PLI Business Transformation – Aligning Systems and Processes

Design Confirmation Workshop

© 2017 PETROLIAM NASIONAL BERHAD (PETRONAS)

All rights reserved. No part of this document may be

Where are We are on Level 27, Integra Tower

Presenters John Lee, Goh Song Ling

Proceed to the front doors on both sides of the

©Petroliam Nasional Berhad (PETRONAS) 2017 2

Silent your phones during the sessions

Be punctual at all times

Speak up so that everyone can hear you

©Petroliam Nasional Berhad (PETRONAS) 2017 3

DCW is meant to…

• Assess the impacts of the gaps identified in terms of people, process,

• DCW is not a local requirement gathering session – remember that

©Petroliam Nasional Berhad (PETRONAS) 2017 4

AGBPO To inherit GBPO accountabilities when deputized

Functional To provide functional expertise/knowledge in assigned

Regional Business To understand and provide feedback on the global design

©Petroliam Nasional Berhad (PETRONAS) 2017 5

Focus on our #1 objective - we are working

Listen with an open mind - consider changes

Conduct constructive discussions - respect

©Petroliam Nasional Berhad (PETRONAS) 2017 6

©Petroliam Nasional Berhad (PETRONAS) 2017 7

©Petroliam Nasional Berhad (PETRONAS) 2017 8

To understand and align the company code settings and its

To align with a single chart of accounts and understand the

3 To understand the General Ledger design in S/4 HANA

©Petroliam Nasional Berhad (PETRONAS) 2017 9

Verify sessions details – for each session, you’ll be provided

Indicate your attendance – fill in your

Record any localization requirements

©Petroliam Nasional Berhad (PETRONAS) 2017 10

• Financial Enterprise Structure

• Manage G/L Master Data

• Manage Transactional Data

©Petroliam Nasional Berhad (PETRONAS) 2017 11

Asia China Europe Americas

PETRONAS PETRONAS Lubricants

PETRONAS Lubricants PETRONAS Lubricants PETRONAS

PETRONAS Lubricants PETRONAS Madeni

PETRONAS Lubricants PETRONAS Lubricants

©Petroliam Nasional Berhad (PETRONAS) 2017 12

Multiple Fiscal Year Conventions

©Petroliam Nasional Berhad (PETRONAS) 2017 13

PLI1 MX10 0466 PL NA Mexico S.DE.R.L.DE.C.V Mexico MXN USD EUR K4

USD is management accounting/group currency

Local Group Reporting

©Petroliam Nasional Berhad (PETRONAS) 2017 15

• Financial Enterprise Structure

• Manage G/L Master Data

• Manage Transactional Data

©Petroliam Nasional Berhad (PETRONAS) 2017 16

• Overview of Manage General Ledger Accounting Process:

• Creating / • General ledger • General ledger

©Petroliam Nasional Berhad (PETRONAS) 2017 17

©Petroliam Nasional Berhad (PETRONAS) 2017 18

SAP Chart of Accounts Overview

©Petroliam Nasional Berhad (PETRONAS) 2017 19

Group (PETH) and Operational (PLI1) Chart of Accounts