FI G/L Accounting

The central task of G/L accounting is to provide a comprehensive picture for external accounting and accounts. Recording all business transactions (primary postings as well as settlements from internal accounting) in a software system that is fully integrated with all the other operational areas of a company ensures that the accounting data is always complete and accurate.

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.

Essentially, the general ledger serves as a complete record of all business transactions. It is the centralized, up-to-date reference for the rendering of accounts. Actual individual transactions can be checked at any time in realtime processing by displaying the original documents, line items, and transaction figures at various levels such as:

• Account
• Journals
• Summary/balance transaction figures
• Balance sheet/profit and loss evaluations

G/L Account Master Records

Business transactions are posted to accounts and are managed via accounts. You must create a master record for each account you need. It contains information that controls the entry of business transactions in an account and the processing of data.

The G/L accounts record the business transactions in totals form. In the standard system, all business transactions that are posted to G/L accounts are updated in the general ledger. Additionally, you can define further ledgers which are also posted to. For this, you must use the Special Purpose Ledger system. Information on additional ledgers can be found in FI-SL Special Purpose Ledger.

The following sections contain basic information on G/L account master data as well as explanations of the settings that you make in Customizing. More detailed information on how to make these settings can be found in the General Ledger Accounting Implementation Guide. You can also find out how to create, display, change, delete, or lock general ledger master data.

Environment: G/L Account Master Data

The following objects play a central role in the creation and management of master records:

• Chart of accounts list

• Chart of accounts

• Account group

The sample account and the data transfer rules are optional and provide special functions. The following figure gives an overview of these objects.

• The
chart of accounts list contains all of the charts of accounts that you support within a client.

• The
chart of accounts in the R/3 system is a list of all G/L account master records which are needed in one or several company codes. For every G/L account master record, the chart of accounts contains the account number, the account name and controlling information.

• The
sample account and the data transfer rules determine which field values are predefined when creating a G/L account master record and whether these values can be overwritten.

• The
account group is a summary of characteristics that control the creation of master records. You can use it to determine which fields must or can be filled when creating the master record. In addition, it can be used to predefine a number interval, from which the numbers for the master records should be chosen. Accounts that require the same master record fields and use the same number interval are created with the same account group.

The

G/L account master record in the company code contains company code-specific information which controls the entry of data to this account and the management of the account.

Hierarchy of the FICO G/L Account Master Records

G/L account master records are distributed to both of the following areas:

• A chart of accounts area

The chart of accounts can be valid for one or more company codes. It contains information which applies to the master records of the company codes that use this chart of accounts.

• A company code-specific area

The company code-specific area contains information which may differ from company code to company code.

For example, an account number is specified in the chart of accounts, and the currency in which you can post to the account is set in the company code area. The following figure illustrates this.

The information in the chart of accounts controls, among other things, the creation of master records in the company codes. Before creating the company code part of the record, you thus have to first enter the master record in the chart of accounts.

The general ledger accounting (FI-GL) component allows you to maintain these areas either separately or together with the following options:

• You can create the chart of accounts in one step (independent of the company code).
• You can create the company code area after creating the chart of accounts area.
• You can maintain both areas in one step.

The different organizations of the various companies should be taken into account with the different procedures.

Companies which are centrally organized will want to define the chart of accounts for their company codes. The employees in these company codes then create the company code-dependent area for the G/L accounts. The chart of accounts should not, in this case, be maintained by the employees in the company codes. You can prevent this by using authorization assignment. For more information on authorization assignment, see Financial Accounting Global Settings in the Implementation Guide under Maintain Authorizations.

However, you may also want to control the creation of master records in the company codes. In order to define special data centrally, a sample account can be specified in the chart of accounts for every master record. The values contained in it are transferred according to definable rules when creating the master record in the company code. Using the sample account procedure is optional. For more information on sample accounts, see Sample Account.

You can create the master record in one step if not just the chart of accounts, but also the entire master record is to be defined from a central location. In a case like this, you do not authorize the employees in the company codes to maintain the master data.

Companies which are organized locally will have the chart of accounts and the area in the company code created and maintained by the employees in the individual company codes. In this case, you assign authorization for maintaining the master records to the appropriate employees.

Chart of FI G/L Accounts List

The basic element of the master data structure in the general ledger accounting (FI-GL) system is the chart of accounts index. You enter all the charts of accounts that you require in your company in this index.

In the FI system, you can use as many charts of accounts as you require within a client. Company codes may have different requirements for grouping a chart of accounts if company codes are from different business sectors or countries, or have a different structure, company size, or legal structure.

However, several company codes can also use a common chart of accounts if a different grouping of the chart of accounts is not required.

You must allocate one chart of accounts to each company code. You therefore need at least one chart of accounts for your company in the system.

The chart of accounts is shared by financial accounting as well as cost/revenue accounting. The items in a chart of accounts can be both expense or revenue accounts in financial accounting and cost or revenue elements in cost/revenue accounting.

For more information on charts of accounts, see:

Specifications in the Chart of Accounts List

Using Several Charts of Accounts

Translating a Chart of Accounts

Changing the Chart of Accounts List

Specifications in the Chart of FI G/L Accounts List

First enter the chart of accounts key and its name in the chart of accounts list. Then make the following specifications for the chart of accounts:

• Maintenance language

You maintain (that is, create and change) the chart of accounts in what is known as the maintenance language. You display it, however, in the logon language.

• Alternative languages

You translate the chart of accounts into other languages in order to be able to display the account name in the appropriate logon language when displaying master data and posting. If the chart of accounts has not been translated into the appropriate logon language, the account name appears in the maintenance language.

• Block indicator

With a block indicator, you can block a chart of accounts so that G/L account master records cannot be created. This is useful if you create your chart of accounts from a central location and want to prevent accounts from being created in the meantime in the company codes. You can use the block indicator to determine centrally when master records can be created for the chart of accounts.

• Length of the G/L account number

In the system, you can use account numbers of up to ten characters. If you do not need the entire length, you should specify in the chart of accounts list how many characters your account numbers have. This allows the system to suppress any leading zeros.

The assigned numbers should not contain a mixture of alphanumeric and numeric characters and should all have the same length. This is especially important if you want to order particular accounts hierarchically, such as your bank accounts.

Purely numeric account numbers are padded from the left with zeros by the system:
while alphanumeric account numbers appear left-justified:
1234.100 ® 1234.10000
1131DB ® 1131DB0000

Using Several Charts of FI G/L Accounts

Generally speaking, you only ever need more than one chart of accounts if you work with several company codes. But several charts of accounts are not absolutely necessary: You can also use one chart of accounts if the company codes do not have different requirements for grouping the chart of accounts.

The chart of accounts is shared by financial accounting as well as cost/revenue accounting. The items in a chart of accounts can be both expense or revenue accounts in financial accounting and cost or revenue elements in cost/revenue accounting.

You must set up the accounting system for two company codes which use the same account grouping. In this case, you will create only one chart of accounts and use this chart of accounts in both company codes.

You require several charts of accounts if you work with several company codes that require a different grouping structure of the chart of accounts. This is the case if you work with domestic and foreign company codes, if your company codes belong to different business sectors, or if you structure your charts of accounts differently for other reasons.

You must set up the accounting system for two companies: for a wholesaler and for an industrial enterprise. In Germany, you would use two charts of accounts to do this, since different grouping principles are generally used for these different industries.

The usage of different charts of accounts has no effect on the balance sheet and profit and loss statement. When creating the balance sheet or the profit and loss statement, you can choose whether to balance the company codes which use different charts of accounts together or separately. For more information, refer to FI Closing Operations and Reporting.

Translating a Chart of FI G/L Accounts

In addition to the account number of a G/L account master record, the chart of accounts also contains the account name. You may enter and change this name in the chart of accounts in one language only. This is the maintenance language of the chart of accounts. In the chart of accounts index, you must specify the maintenance language to be used for each chart of accounts. You generally use the language of the corporate group.

You use one chart of accounts for company codes in England and in Germany. You create the chart of accounts in England and choose English as the maintenance language. If you maintain this chart of accounts in Germany, you must maintain it in English.

The account name is displayed both when you post to a G/L account and when you create, display, or change the G/L account master record. The system uses the name from the chart of accounts. If you require the account name in languages other than the maintenance language, you can translate it. When the account is posted to or the master record displayed, the system attempts to display the name in the user's logon language. If no translation is available, it is displayed in the maintenance language.

You must specify the languages into which you want to translate the account name in the chart of accounts index. You can then only translate the chart of accounts into the languages listed in the index.

In our example, you maintain the chart of accounts in English. Since you also use the chart of accounts in Germany, you translate the account name into German. When a German employee posts to one of the accounts, the account name is displayed in German. English is the maintenance language and German is specified as an additional language in the chart of accounts index.

If you want to translate an account name, proceed as follows:

Choose Master records

® Chart of accounts® Maintain acct name.

The system displays the initial screen for specifying the G/L account master record.

Enter the G/L account number and the master record chart of accounts.

The system displays the screen for translating account names and the language keys for the languages into which you can translate them.

Enter translations of the short and long text into the language you require.

If you do not translate the long text, the system transfers the short text into the field for the long text.

Save your entry with Account name

® Save.

Changing the Chart of FI G/L Accounts List

There are two restrictions to changing the chart of accounts index:

Firstly, you can change the language key for your maintenance language. However, you can only enter language keys for the languages into which the chart of accounts has already been translated. For example, the language key "E" for a chart of accounts maintained in English can be replaced by a "D" only if the chart of accounts exists completely in German.

Secondly, you can delete an entry from the index if you have deleted or not yet created the chart of accounts.

Data in the Chart of FI G/L Accounts

The chart of accounts lists all the G/L account master records that belong to the chart of accounts. However, the chart of accounts is not just an index of all G/L accounts. In the General Ledger Accounting component (FI-GL), it also contains information on each master record that is not company code-dependent and thus managed centrally. This data identifies the type of account and controls the creating and changing of a master record (account group, sample account).

This information

• Specifies the account number and account name (short and long text) for each G/L account master record.
• Specifies whether the account is a balance sheet account or an P+L statement
account. At the start of a new fiscal year, the balance of a balance sheet account is carried forward to the same balance sheet account. With P+L statement accounts, you must specify the account to which the profit or loss is carried forward at the end of a fiscal year.
• Controls how a master record is created or changed. specifies which fields must or can be filled or suppressed when creating or changing a master record. You use the account group to do this.
• Can group G/L account master records in the chart of accounts when you specify
number intervals. In the chart of accounts, you enter the number of the master record in the company code and use the account group to control and check the number assignment. To do this, you define corresponding number intervals using the account group.
• Determines that values are provided when you create the master record in the company code. For each value, you can also specify whether it can be overwritten or must be transferred. This specification is made when you assign a sample account to each G/L account master record in the chart of accounts. The sample account contains the default values.
• Is necessary for consolidation: trading partner and group account number.

You must define your account groups outside of the chart of accounts. In the chart of accounts, specify the key under which you have stored these definitions. Then create a sample account and assign it to a G/L account master record: specify the account number of the sample account in the required master record in the chart of accounts.

Account Group: FI G/L Account Master Data

The purpose of the account group is to simplify the creation of master records and to prevent errors. The account group specifies the screens for entering master records and specifies the number interval from which the account number is selected. Account groups are defined for each chart of accounts.

When you create a master record in the chart of accounts, you must specify an account group. This means that you need at least one account group for your G/L account master records. The general ledger accounting (FI-GL) component is delivered with defined account groups.

If you do not want to use the account group as an entry tool, define an account group whose number interval includes all required numbers and contains the status "optional field" for the field groups. You can also define account groups that use the status definition only for the design of the screens or are supposed to define just the number interval for master records.

Do not forget to maintain the field status. Otherwise, all fields are hidden.

For more information on topics discussed in this section, please refer to:

G/L Account Master Data Entry Screen Layout

Example of G/L Account Master Data Entry Screen Layout

Account Number Assignment

Change to the Account Group

Field Status Definition

Field Status Definitions for Transactions: G/L Account Master Data

FI G/L Account Master Record Entry Screen Layout

You can group G/L account master records by functional area. For example, you can group all bank accounts, postal giro accounts, and cash in the account group FIN. for "liquid funds". The master records within a functional area require the same fields for storing information when entering and processing business transactions.

Using the account group, you specify the fields that are relevant for a group of master records. To preclude the need to give every field a status, fields are combined into groups. The field group Interest calculation, for example, lets you set the status of the fields Interest calculation indicator, Interest cycle, and Last interest calculation key date.

You can assign one of the four following field statuses to all the fields in a field group:

• Field requires an entry (required field)
• Field permits an entry (optional field)
• Field contents are displayed only (display field).

This status should not be used since the fields that are displayed should be ready for input when you create a master record.

• Field is suppressed

You set the field status by clicking on the required field status for each field group. If you do not maintain the field status, the system uses the default status "suppressed".

You cannot set the field status for the fields currency key and field status group. These fields must be contained in the master record of the G/L account. The field status group in the master record is required for layout of the screens needed for posting to the account.

The screen layout definitions have an effect not only when creating but also when changing a master record. When you make changes, the system always uses the current definition.

Example of FI General Ledger Account Master Data Entry Screen Layout

Since bank accounts, postal giro accounts and cash accounts are never used as reconciliation accounts, the Reconciliation account field is irrelevant to these master records. Therefore, this field can be suppressed for these master records. In addition, you post to these accounts directly so the fields for automatically posted accounts can also be suppressed. Every master record in the account group Liquid funds must be marked as a cash flow account. The system requires this information, for example, to calculate the payment amount from a customer for a payment confirmation. Consequently, this field should be defined as a required field for the master records in this account group.

The following figure shows two initial entry screens for company code-specific data: one containing all fields and one modified for the account group Liquid funds.

Account Number Assignment FI G/L

Standard charts of accounts are recommended in most countries. These are generally created so that the numbers of the accounts belonging to the same functional area begin with the same digits.

Bank, postal giro and cash account numbers begin with the digit 1 .

You use the account group in the chart of accounts to indicate this grouping principle. In addition to the field status, you can specify a number interval for each account group within which the account number of a master record - and therefore the account - must lie. This prevents typographic errors when you enter master records in the chart of accounts.

In our example for the account group Liquid funds, you would not only suppress certain fields and define others as required fields, you would also specify an interval for the account numbers. If you specify the number interval 100000 to 129999 for this account group, you must select account numbers for the master records from this interval. In our example, you could specify account number 101000 for the account Cash in the chart of accounts. Account number 10100 would be rejected as incorrect since it does not fall within the number interval of the account group Liquid funds.

The number intervals for G/L account master records can overlap. As a result, for master records that you do not want to assign to any special functional area, you can create a separate account group that has a number interval already contained in other number intervals.

You have the option of assigning alphanumeric account numbers. Account numbers can be up to ten characters long. You can reuse numbers from master records that have been deleted. The system ensures that account numbers are uniquely assigned. Always use account numbers of the same length. Using account number of varying lengths is not suitable for representing a hierarchy of accounts. Do not assign numbers that are both alphanumeric and numeric. The system pads purely numeric account numbers with zeroes from the left, and alphanumeric account numbers from the right.

Change to the FI G/L Account Group

You may have to make changes to the account group if fields do not have the required status. After you have installed the system, you may want to introduce an additional application. You have suppressed the fields relevant to this application in the master records. However, these are now required fields so you define them as such.

You may make the following modifications:

• Entering a different account group in the chart of accounts.

• Changing the field status definition for the account group.

• Changing the number interval for the account group.

If you enter a different account group in the chart of accounts, it will contain a different field status definition or a different number interval. Please note:

If you change the field status definitions for an account group , these changes take effect when you display or change the master records that were created with this account group. The current definition always applies.

Situations may arise that require the maintenance of all master records using the corresponding account group. This is the case if you change the status of a field group from an optional to a required field or if you insert suppressed fields.

If you suppress fields at a later date, the field contents remain. However, the field is no longer displayed when you maintain the master record. The field contents continue to take effect.

You can change the number interval of an account group at a later date. The system only checks whether the specified account number lies in the number interval of the account group when you enter a master record in the chart of accounts. If you have chosen a number interval that is too small, you can increase it as necessary.

You may only delete an account group from the system if no master record refers to this account group. Otherwise, you cannot display or change the master record.

Field Status Definition FI G/L

You have to define field status outside of the master record. Mark the field status you need for each field or field group under a field status group. Then assign the field status group to individual G/L accounts in the G/L account master records.

Field status groups are independent of company code, attaching instead to the field status variant. A separate variant exists in each company code for field status groups in the standard system. The variant name is the same as the company code, and each company code is assigned to this variant.

You can work with the same field status groups in more than one company code, as outlined below: Proceed as follows:

1. Maintain field status variants
2. Assign a company code to the field status variant

Do not forget to maintain the field status. Otherwise, all fields are hidden.

Example of a field status group

You defined a separate field status group for bank accounts because you always need the same fields for posting to bank accounts. Within this group, the allocation number, text, and value date fields are optional. You have specified that all other fields be suppressed.

The figure below shows the standard screen in which no fields are suppressed, and the screen for posting to a bank account.

Other factors

Besides the field status group in the account master record, your posting key specifications also affect posting. For each posting key, you can decide what status the fields should have when posting with a key. But because there are only two posting keys for posting to G/L accounts in the standard system, you should use the field status groups from accounts in the master record for your screen layouts. The field status definition for posting keys 40 (debit posting to G/L accounts) and 50 (credit posting to G/L accounts) have optional status for each field in the standard system. Do not change this.

Some fields are controlled by other specifications. If you work with business areas, display the field centrally using company code specifications. The component documentation for general ledger accounting (FI-GL) as well as accounts receivable and payable (FI-AP/FI-AR) explains in greater detail when fields can be suppressed or shown independently of a field status group.

Field status groups and reconciliation accounts

You must also enter field status groups in reconciliation accounts. These specifications affect the customer or vendor account during posting. You cannot enter any field status groups in the master records for these accounts.

Field Status Definitions for Transactions FI G/L

You can also make the status of a field group dependent on the transaction used to process the master record for the following transaction types:

• Display
• Create
• Change

For each transaction, you can specify the field status for the company code-specific data area of the master record.

Link Between Status Specifications and Transaction Specifications

When you create, display, or change a master record, the system links the specifications you made for the account group with those made for the transaction. The fields in a field group take the status with the highest priority.

The status with the highest priority is the suppressed field, followed by display, optional, and required entry fields.

Data in the Company Code FI General Ledger

The area of the G/L account master record contained in the chart of accounts is described in the chart of accounts. The following only deals with the area of the master record created in the company codes.

The company code area of the G/L account master record contains the information on a master record that differs from company code to company code. This information controls the entry of accounting documents and the management of accounting data.

You use one chart of accounts for company codes in Germany, Italy, and Austria. You then set the master records in this chart of accounts specifically for the different company codes: you manage the accounts in Germany in German marks, in Italy in Italian lira, and in Austria in Austrian shillings.

For more information on topics discussed in this section, please refer to:

G/L Account Master Data in the Company Code

Account Management: G/L Account Master Data

FI General Ledger Account Master Records in the Company Code

This section explains the most important specifications you can make in the company code area of a G/L account master record. If you have to enter keys or indicators in a master record field, you can read about these specifications in more detail in a separate chapter. You are always notified of the relevant section. Before you make your specifications, you should read these sections.

Currency

Balances in Local Currency Only

Tax Category

Posting Without Tax Allowed

Reconciliation Account for Account Type

Open Item Management

Line Item Display

Field status group

Further Specifications

General Ledger Currency

For each account, you can specify the currency in which it can be posted. To do this, you enter a currency key in the master record. If you have entered the currency key for local currency, you can post to the account in any currency. If you have entered the currency key for a foreign currency, you can post to the account in this foreign currency only. You have defined the local currency for each company code. This currency is defaulted automatically when you create a G/L account. For each account, the transaction figures are always updated and displayed in local currency

If you enter the currency key for a foreign currency in the master record, the transaction figures and the account balance of an account are managed in both the local currency and the specified foreign currency.

If you have set up a foreign exchange account at a bank, it is a good idea to manage it in your accounts in that currency as well. By doing this, you can compare the transaction figures with the account balance on the bank statement.