SAP Financial Accounting

Week 6
Tahir Sattar
Course Schedule
Su Unit 1 – Bank Reconciliation
01

Su Unit 2 – Special G/L Transactions

02

Su
03 Unit 3 – Basics of Document Parking and Hold Document
Unit 1 – Bank Reconciliation
Unit 1 – Bank Reconciliation
• Create Account Symbols
• Assign symbol accounts to G/Ls
• Create Keys for Posting Rules
• Assign symbol accounts to G/Ls
Unit 1 – Bank Reconciliation
In sap system you need maintain three accounts from charts of accounts for one bank.
As per best practice we’ll maintain bank accounts as given below
Main Bank account 1012010
Incoming Bank Account 1012011
Out-Going bank account 1012012

But open item management box will be check-in for incoming and outgoing G/Ls.
Bank Reconciliation
Executive “Define Posting Keys and Posting Roles for Manual
Statement”
Select chart of account from that G/Ls will be taken
Create Account Symbols
Click on new entries in create account symbols screen
Maintain account for
Main bank
Income bank
Outgoing bank
Bank charges
Assign symbol accounts to G/Ls
In this screen, G/L accounts from chart of accounts will be assigned to account symbols.
After creation of account symbol double click on assign accounts to account symbol
Go to new entries
Maintain G/L accounts respect to account symbol
Create Keys for Posting Rules
Double on create keys for posting rules after assignment of G/L accounts.
Go to to new entries
Create keys for posting rules with 4 characters and text for each
Assign symbol accounts to G/Ls
Double click on posting rules
Go to new entries
Define posting rules
For incoming transactions maintain fields as given in this screen
Assign symbol accounts to G/Ls
Same for outgoing transactions and bank charges transactions fields will be maintained
Unit 2 – Special G/L Transactions
Unit 2 – Special G/L Transactions
• Special G/L Transactions
• Special General Ledger (G/L) Classes
• Down Payments
• Bill of Exchange
• Other transactions
• Special General Ledger Types
• Process of Down Payments
• Bill of Exchange
• Bill of Exchange Receivable
• Bill of Exchange Payable
• Configure SAP Bill of Exchange
• Create New General Ledger Accounts & Bank Bill Discounting Account
• Link Between Standard Reconciliation and Customer Bill of Exchange Accounts
• Define Bank Subaccount
• Execute SAP Bill of Exchange
• Bill of Exchange Payment
Special G/L Transactions
Special G/L transactions are various types of accounts receivable (AR) and
accounts payable (AP) transactions that do not follow normal document
posting logic and account determinations. They are posted using a special
G/L indicator with a corresponding posting key. Each transaction will have
an indicator which represents its type and properties that designate its
posting method.
Special General Ledger (G/L) Classes
You can divide the purposes of special G/L transactions into the following three classes:
1. Transactions in connection with down payments
2. Transactions in connection with bills of exchange
3. Other transactions
Down Payments
The SAP S/4HANA application provides special, preconfigured programs and entry screens used for the
administration of requested, received, and used down payments. Administrators can also use the SAP
S/4HANA application for accounts receivable or accounts payable. Use the standard menus to call
preconfigured programs and entry screens. In addition, the processing of down payments is integrated in
the dunning and payment programs.
Bill of Exchange
In the SAP S/4HANA application, you can use bills of exchange to deal with countryspecific particularities.
The SAP S/4HANA application contains special preconfigured programs and entry screens that utilize the
functions of special G/L transactions. Options for processing bills of exchange are available in the standard
menus for accounts receivable and accounts payable.
Other transactions
In the SAP S/4HANA application, you can use the functions of the special G/L transactions for different
types of business transactions. To control these transactions, use the Other option in the Document Entry
menu in accounts receivable and accounts payable. The special general ledger indicator makes it possible
to pass on documents for individual items to a reconciliation account. The indicator regulates the type of
processing that is triggered for the business transaction.
Special General Ledger Types
There are three ways to transfer special general ledger entries to the SAP S/4HANA application. All three
are special general ledger types. The configuration of the special G/L indicator determines whether the
posting is one of the following:
1. Automatic offsetting entries (statistical)
These transactions are included in notes to financial statements and are always posted on the same offsetting account. Like
Posting of a guarantee of payment
2. Noted items
Individual account assignments that are only used to remind the respective department of due payments or payments to be
made. They are not intended to be displayed in the general ledger. Like Down payment request
3. Free offsetting entries
These entries are part of the financial statements. They are postings with freely definable offsetting entries. Like bank posting
of a received down payment
Use Special G/L Transactions
Depending on company adopted accounting standards and reporting needs,
special G/L transactions allow the aforementioned transaction types to be
displayed appropriately in financial statements and/or notes to financial
statements. For noted items and statistical entries, they provide an audit
trail of non-conventional postings that are not included in the balance
sheet. Rather than record such transactions outside of the system, they can
be maintained in SAP to preserve financial data integrity and transparency.
For real postings, alternative reconciliation accounts are used to segregate
special G/L transactions from normal transactions and to enable flexible
integration with the balance sheet.
Process of Down Payments
1. The down payment is requested.
Down payment requests are noted items. The down payment requests do not change any account balances. You can
automatically issue dunning notices and make payments based on down payment requests.
2. The down payment is received.
The SAP S/4HANA application displays the received down payments as payables in your accounts. The received down payments
must not change the balance of the Receivables reconciliation account. You can administer the received down payments in the
Down Payments Received alternative reconciliation account, which is in the Payables area in the financial statements.
3. The customer is invoiced.
The customer receives an invoice whenever goods are supplied or services are performed.
4. The down payment is posted and cleared with invoice.
Now that it has cleared, the down payment is no longer considered a down payment. Display the amount as a payment on the
normal reconciliation account.
5. The payments are cleared.
The items are cleared when the customer's balance is paid.
Bill of Exchange
Bills of exchange are short term financial instruments which are used by an organization as an
unconditional order by one party to another to pay a certain sum of money within a stipulated timeframe.
An SAP bill of exchange is usually created by the accounts receivable or the accounts payable department
of an organization. Thus, there are two types of bill of exchange as we shall discuss in the following
sections:
1. Bill of Exchange Receivable
2. Bill of Exchange Payable
Bill of Exchange Receivable
Bill of exchange receivable can be defined as a commitment by a customer to pay a certain amount in the
stipulated time upon the presentation of the bill of exchange document. It acts as short term credit to the
customer.
Bill of Exchange Payable
An SAP bill of exchange payable represents a liability on the bank which posts to a bank subaccount. This
helps monitor when a bill is due at which bank. After the due date of the bill is reached, the bank pays the
vendor. Then, post the bill of exchange payment to clear the payable on the vendor and special G/L
account as well as the liability on the bank.
Configure SAP Bill of Exchange
We shall describe the customization steps for SAP bill of exchange receivable and walk through the
process. The customization steps include:
1. Create New General Ledger Accounts: Customer Bill of Exchange Account & Bank Bill Discounting Account
2. Link Between Standard Reconciliation and Customer Bill of Exchange Accounts
3. Define Bank Subaccount
Create New General Ledger Accounts & BANK BILL DISCOUNTING ACCOUNT
Create the two new G/L accounts to facilitate SAP bill of exchange.
T – code FS00
This account is created as a special G/L account under the asset account group to support bill of exchange
transactions. It will be used for automatic posting of bill of exchange transactions to a special G/L account.
Enter the required fields, including the following information:
• Account texts should be similar to Customer Bill of Exchange
• Account group Assets
We also must create another account to record the amount received from the bank on
discounting the bills of exchange. This amount received from bank is the liability to the
organization until the final payment is made by the customers. Enter the required fields,
including the following information:
• Account texts should be similar to Bank Bill Discounting
• Account group Liabilities
Link Between Standard Reconciliation and Customer Bill of Exchange Accounts
we need to link the reconciliation account defined in the customer master data to the special G/L account.
To create this link, use transaction code OBYN
Manu Path
Financial Accounting – Bank Accounting – Business Transactions – Bill of Exchange Transactions – Bill of
Exchange Receivable – Post Bill of Exchange Receivable – Define Alternative Reconcil.Acct for
Bills/Exch.Receivables
On the special G/L maintenance initial screen, double click on the line with special G/L transaction
indicator W – Bill of exchange receivable. Enter the relevant chart of accounts in the resulting pop-up
screen and hit Enter.

Link the standard AR reconciliation account with the customer bill of exchange account number you
created in the last step. In our example, 200110 is the standard customer reconciliation account
and 200111 is the bill of exchange receivable account.
Define Bank Subaccount
define the bank subaccount for discounting the SAP bill of exchange. This account is created as a liabilities account since discounted
bills are recorded as contingent liability in the balance sheet. To define the bank, use transaction code OBYK
Manu Path
Financial Accounting – Bank Accounting – Business Transactions – Bill of Exchange Transactions – Bill of Exchange Receivable – Present
Bill of Exchange Receivable at Bank – Define Bank Subaccounts

• Click the New Entries button and enter the following information as a line for each applicable company code:
• Enter the bank account
• Select Discounting in the usage field
• Enter special G/L Indicator W
• Specify the standard customer reconciliation account
• Enter the bank bill discounting account you created in the first step
Execute SAP Bill of Exchange
Not that we have configured SAP bill of exchange functionality, let’s see how it is used in SAP. We will walk
through each of the below steps in the following sections:
• Post Sales Invoice
• Bill of Exchange Payment
• Bill of Exchange Discounting
• Reverse Contingent liability
T – code F-22 – Invoice – General
Accounting – Financial Accounting – Accounts Receivable – Document Entry – Invoice – General
Bill of Exchange Payment
Process the SAP bill of exchange payment to transfer the outstanding amount from the normal vendor reconciliation
account to the bill of exchange special G/L account. When bills of exchange are received for an open item, the status of
open item changes after this transaction is performed.
T – code F-36 – Payment
Manu Path
Accounting – Financial Accounting – Accounts Receivable – Document Entry – Bill of Exchange – Payment

In the header data of transaction code 

F-36 enter the following information:
• Document and posting dates
• Company code
• Currency
• Customer account number
• Special G/L indicator W
Bill of Exchange Payment
• Press Enter to proceed to the customer line item. Enter the following information:
• Bill of exchange amount
• Due date of vendor payment
• Planned usage of Discount
• Note that name of your company automatically appears in the Drawer field, while the customer name
appears in the Drawee field.
Click the Choose open items button
lick the Process open items o proceed to the open items on the customer account. In the open items
selection screen, all open amounts remaining on the customer account will be displayed. Double click the
amounts of the documents you want to include in the bill of exchange payment. The amounts will turn
blue and they will ultimately net to 0.00, as demonstrated below:
Bill of Exchange Discounting
If your company, as the holder of the bill of exchange, is in need of the money before the due date of the bill, approach
the bank for encashment of the bill by discounting it. The bank will likely charge a fee and/or interest for this. Once the
money is received, discount the invoice in SAP, deducting bank charges and interest.
T – code F-33 – Discounting
Manu Path
Accounting – Financial Accounting – Accounts Receivable – Document Entry – Bill of Exchange – Discounting
• In the header data of transaction code F-33 enter the following information:
• Document and posting dates
• Company code
• Currency
• Usage as Discounting
• Bank account G/L
• Business area if this is used (optional)
• Amount to discount the bill, net of charges and interest
Bill of Exchange Discounting
• To post interest, enter the posting key 40 and the G/L account used for interest in the Other line
items section. Press Enter to proceed to create the interest line item and enter the following
information:
• Bank interest charge as Amount
• Text to describe item
Click the Select bill of exch. Button to proceed to enter the bill of exchange payments. Enter the document
number generated in the previous step when you created the bill of exchange payment. A document will
generated.
Bill of Exchange Discounting
Hit Enter to display the document overview. The bill is discounted for the amount received from the bank
as a debit. The interest charge and the bank subaccount which we created initially as a liability account is
credited with the gross discount. This account is a contingent liability, meaning the liability will become
your company’s responsibility if the bills are not paid by the customer in the stipulated time.
Reverse Contingent liability
In the final step of the SAP bill of exchange process, we must reverse the contingent liability. Do this once
the bills are paid by the customer on the due date.
T – code F-20 Reverse Contingent Liability
Manu path
Accounting – Financial Accounting – Accounts Receivable – Document Entry – Bill of Exchange – Reverse Contingent Liability
• In the header data of transaction code F-20 enter the following information:
• Document and posting dates
• Company code
• Currency
• Standard customer reconciliation account (200111 in our example)
• Usage as Discounting
• Due date
• Customer account number
Reverse Contingent liability
Click the Edit line items button. Enter + in the Command for edit field for each listed item that you want
to activate.

Execute transaction code FB03 to display the document you just posted. We see that the debit we made
to the customer account in our first step by posting the customer invoice is now credited. The credit we
made to the bank bill discounting account when we executed the bill of exchange discounting is now
debited. Thus, we have effectively cleared both the customer account and the bank bill discounting
account.
Unit 3 – Basics of Document Parking and Hold
Document
Unit 3 – Basics of Document Parking and Hold Document
• Basics of Document Parking and Hold Document
• Parking Documents
• Holding Documents
Basics of Document Parking and Hold Document
An employee in financial accounting is currently entering documents in the SAP S/4HANA
application. One of the documents that the employee is dealing with consists of ten line items.
The cost center for item nine cannot be determined exclusively from the documents. The
employee cannot save or post the document because it is incomplete, so the employee must
assign the general ledger (G/L) account to a cost center. If the posting procedure is interrupted,
then the employee will need to re-enter the data.
Parking Documents
Document parking enables you to enter incomplete documents in the SAP S/4HANA application. When parking
documents, the SAP S/4HANA application assigns a document number using the document type in the same way as
with normal FI postings. You must pass on the document number if it has been assigned externally.
Parked documents can be supplemented, checked, and posted later on. No data, such as transaction figures, can be
updated when parking documents. Data from parked documents is available to the system for real-time evaluations.
As a result, for example, amounts from parked documents can be used for the advance return for tax on
sales/purchases. The Park Document function is available for conventional postings and the new posting screen.
Parking Documents
If user have incomplete data for an entry to post, Now user want to use document parking fuction of SAP
S/4 HANA.
For customer documents
FV70
F-64
FV75
F-67
For vendor
FV60
F-63
FV65
F-66
Holding Documents
The Hold Document function allows you to temporarily save the entered data so that you can continue data entry
later. Documents that the SAP S/4HANA application holds do not have to be complete.
The account balances are not updated in the held documents, and the data of the held document is not available for
evaluation. The SAP S/4HANA application does not assign any document number to the held documents.
The user making the data entries is prompted to name the document after selecting the Hold Document function. The
user can find the document under this name at a later time.
A user can complete, post, or delete the held document at a later point in time. However, there is a risk of forgetting
held documents and not posting them completely.