Fi GL

SAP Education to Jaguar Land Rover BPOs
Financial Accounting – General Ledger Accounting
– Purpose of General ledger

– Features
– Concepts
• Organization Structure
• Fiscal Year Variant
• Account Groups
• Document Type
• Posting Key
– GL Master data
– Posting to FI-GL
– Cross company code transactions
– Clearing
– Manual Accruals
– Balance Interest calculations
– Information system
– New GL functionality
© Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners. 2
General Ledger Accounting – Purpose
• Purpose
• The central task of G/L accounting is to provide a comprehensive picture for external accounting. Recording
all business transactions (primary postings as well as settlements from internal accounting) in an integrated
manner with all the other operational areas of a company ensures that the accounting data is always
complete and accurate.
Features
• Features
• The SAP FI General Ledger has the following features:
• Free choice of level: corporate group or company
• 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, in the form of account
displays, financial statements with different financial statement versions and additional
analyses.
Organization Structure
• Company Code :
– Company Code is a legal entity which is created for the external reporting. It is an
independent accounting unit . Legally required Balance sheet and income statements are
created at company code level .Tata Motors has Company Code 1000 .
• Segments:
– Segments are the new field which are independent of company code. Segments are
used for financial reporting below company code level for internal purpose
• Business area :
– Business areas are used for internal reporting .segment reporting can be carried out by
business area. It can be a Product , a Geographical area etc
• Profit Center:
– Profit center are used for segment reporting with functions of integrated planning with the
controlling module
Fiscal Year and Posting period Variant
• To separate the posted transaction into different years and periods the fiscal year variant
with posting period is defined and each company code is assigned to this fiscal year variant.
Fiscal year variant can be :
– Year dependent
• Periods can differ from year to year
– Year Independent
• the same number and dates for the periods in each fiscal year and
• It can be a calendar year (Jan-Dec) or a non- calendar year (Apr.-March)
Tata motors
• In a Posting Period variant we have 12 posting periods and 4 special periods. Posting
periods are used for time bound postings and special periods are used for closing(Audit)
purpose.
Account Groups
• Account groups are used to further classify the GL account in a sub group
so that the same nomenclature account be maintained under an identical
number range and controls can be exercised for the maintenance of
master data
Account Groups
Fixed assets Number range 500000 - 599999

Cash
Bank GL a/c 500001- Land & Building
Expenses
Provisions Number range 400000 - 499999
GL a/c 400001- Provision for rent
Document Types
• Document types are used to classify the business transaction i.e. customer invoice,
vendor invoice, asset depreciation posting.
• Functions of document types are:

– Control the header data of document
– Number range for documents
– Which account would be posted i.e. customer, vendor, GL Material, Assets
– Required reference and text
• Document types are provides by SAP templates and it can also be created based on
the specific requirement.
Function of Posting key
Definition
• Two-character numerical key that controls the entry of line items. The posting key determines:
– Account type
– Debit/credit posting
– Layout of entry screens
Use
• When you enter a posting, enter a posting key for each item. This key determines how the item is posted.
Posting keys are defined at client level and therefore apply to all company codes.
Master Data
• Definition
• G/L account master records contain the data that is always needed to record business
transactions in accounting The G/L account master records control the posting of
accounting transactions to G/L accounts and the processing of the posting data.
• Structure
• G/L account master records are divided into two areas
• · Chart of accounts area
• The chart of accounts area contains the data that is valid for all company codes, such as the account
number.
• · Company code specific area
• The company code specific area contains data that may vary from one company code to another, such
as the currency in which the account may be posted.
Posting to General ledger
• Purpose
• To make general ledger business transactions available, you post them to general ledger
accounts. The system creates a document , saves the data to the database, and then
makes the data available for updating.
• Document Header
• When you carry out postings to G/L accounts, you enter document header data (usually
document date, document type, company code, posting date, and currency)
• Document line items
• The part of a document that contains information about an item. This includes an amount,
an account number, the credit or debit assignment, and additional details specific to the
transaction being posted.
• You can enter terms of payment, a cost center, or an explanatory text in a line item for
– The system carries out consistency checks before saving the data. When the debits equal the credits,
and the data is complete, post the document. If errors exist, the data is not saved, and the system
proposes adjustments.
– The system updates the document file and the G/L account balances.
Cross company code transactions
Use
• Several company codes are involved in a cross-company code transaction. In a cross-

company code transaction, the system posts a separate document with its own document
number in each of the company codes.
• Individual documents are linked by a common cross-company code number. The system
generates line items automatically (receivables and payables arising between company
codes) in order to balance the debits and credits in each document.
• You can use only one company code for offsetting entries. That is to say, regardless of the
number of company codes involved, you must make one of the following entries:
– Only one company code on the debit side and the rest on the credit side.
– Only one company code on the credit side and the rest on the debit side.
Open item clearing
• Purpose
• The SAP System offers the following procedures for accounts with open item
management:
– Posting with clearing
– Manual account clearing
– Automatic clearing program
• In one clearing transaction, you can process several accounts, different account types
(G/L account, customer, vendor), and accounts from several company codes.
• Automatic clearing program
• The clearing program carries out automatic clearing within the SAP System. However,
all prerequisites for clearing open items in the SAP System must be fulfilled.
•
• During clearing, the system enters a clearing document number and the clearing date in
these items. In this way, invoices in a vendor account are indicated as paid, and items in
a bank clearing account are indicated as cleared.
Manual Accruals
Purpose
• The Manual Accruals component enables you to calculate and post accruals in General
Ledger Accounting.
• You enter the data once for a business transaction that you have to accrue. On the basis of
this data, the system calculates the amounts to be accrued. You can also simulate these
amounts.
• The functions in Manual Accruals support the use of parallel valuation methods. This allows
to calculate and post accruals according to different accounting principles simultaneously.
Features
· Processing Accrual Objects

Entering data for accrual objects
· Periodic Accrual Run
• In a periodic accrual run, the accrual postings are made for the posting period. You can
reverse a complete accrual run after it has been carried out.
· Displaying Totals Values and Line Items
• Totals values and line items are stored for the accrual postings. You can display these.
Balance Interest Calculations
Used to calculate interest on the balance of those G/L accounts which are
managed with open item display by using the balance interest calculation
function in the FI system.
This function can be used, for example, to double-check the interest calculated
on your accounts by the bank.
Information system
In addition to normal line item and balance reports , SAP provides following two reporting functionality
is available.
• Drilldown Reporting
– Financial Statement Analysis

Financial statement analyses are based on hierarchical financial statement versions that are stored in
Financial Accounting. The system gives you the option to perform difference analyses based on actual
and plan data at any time (yearly, half-yearly, quarterly, and monthly comparisons).
– Key figure reports

The financial statement items from the financial statement version are inserted in the key figure reports
as needed. You can, for example, following financial statement balances, determine the liquidity ratio,
or determine financial statement version key figures such as the equity ratio.
• Financial Statement Versions

Hierarchical arrangement of G/L accounts.
The accounts can be arranged in accordance with the legal regulations used to generate financial
statements. Alternatively, you can arrange the accounts in accordance with your requirements.
You can define several different financial statement versions. This may be necessary if you want to generate the
financial statements using different formats.
New General Ledger Functionalities
Legal and
management
reporting
Financial
Real time CO reporting using
FI integration any
characteristics
New GL
Accounting
Simple
Segment
reporting Parallel
Accounting
Fast Period
End Closing
New General Ledger Functionalities
• Legal reporting based for various country specific requirements like accounting
policies, Currencies , fiscal year
• Real time integration of financial accounting and management accounting, Segment

Reporting
• Profit center and business area wise trial balances
• Transparency and flexibility in the system
• Cost of sale accounting – functional area wise break up of revenues and Costs
Difference Between Classical GL and New GL Function
R/3 Enterprise My SAP ERP
FI Classic GL (Legal COS

Requirement)
Ledger
Reconciliation Ledger
EC-PCA ( Management and

Segment Reporting )
Special Purpose Ledger (

Multidimensional; Customizable)
Legal and Management Reporting
• Companies Operating in multiple countries are required to report with

compliance of country specific as well as International Standard like IFRS ,
US GAAP . IAS
• New GL – Multiple ledger

– New GL has a Concept of Multiple ledger
– Leading Ledger is the main ledger of the company code which has the
same currency ,fiscal year as of company code and follows accounting
policies of local country
– Leading Ledger is the default ledger for all posting
– Non –Leading Ledgers are the supporting ledgers .Non –leading
ledgers can be many as per required for reporting
– Non- Leading Ledgers can have different currencies then company
code but these currencies should be other parallel currencies of
company code
– Non-Leading ledgers can have different fiscal year than the company
code fiscal year
Legal reporting based for various country specific requirements
like accounting policies, Currencies , Fiscal year
• New GL – Multiple ledger
Leading Ledger
Non-Leading Ledger1
All Posting
Data Non-Leading Ledger2
Non-Leading Ledger3
Segment Reporting
• New GL Segment is new organizational unit which is not assigned to controlling
area or company code. Segments are at client level
• Derivation of segment field for various business transaction

– Derivation from profit center master data
– Substitution in FI/CO
– Manual input
• Segment wise break up of revenue and cost

• Use of segment in profitability analysis
• Integrated Planning with version management
Segment Reporting
• New GL – Document Splitting
– Posting to customer and vendor accounts can be updated to profit centers real time
– All Balances in accounts by profit center, Business area, Segment, functional area for
all ledgers get carried forwarded by a single transaction
– Balance sheet by profit Centers, Business area, Segments
– No Manual profit center document for adjustment
– Vendor and Tax items splitting online and reconciliation account balance online
updated by profit center
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SAP Education to Jaguar Land Rover BPOs

Financial Accounting – General Ledger Accounting

– Purpose of General ledger

• The SAP FI General Ledger has the following features:

• Free choice of level: corporate group or company

• Simultaneous updating of general ledger and cost accounting areas

Fixed assets Number range 500000 - 599999

GL a/c 400001- Provision for rent

• Functions of document types are:

• Document line items

• Several company codes are involved in a cross-company code transaction. In a cross-

• Automatic clearing program

· Processing Accrual Objects

– Financial Statement Analysis

– Key figure reports

• Financial Statement Versions

• Real time integration of financial accounting and management accounting, Segment

• Profit center and business area wise trial balances

• Transparency and flexibility in the system

R/3 Enterprise My SAP ERP

FI Classic GL (Legal COS

EC-PCA ( Management and

Special Purpose Ledger (

• Companies Operating in multiple countries are required to report with

• New GL – Multiple ledger

• Derivation of segment field for various business transaction

• Segment wise break up of revenue and cost

• New GL – Document Splitting

– Balance sheet by profit Centers, Business area, Segments

– No Manual profit center document for adjustment

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