MELJUN CORTES Financial Accounting Master Data

Financial Accounting (FI)

- Master Data -

Unit 6

January 2008© SAP AG - University Alliances and The

Rushmore Group, LLC 2008. All rights reserved.

2

Business Process Integration

Master DataFI



3

Master Data

• Master data is relatively fixed– Material master data– Vendor master data– Purchasing information record– General Ledger master data

• Before making the master data configurations, you must have completely defined the organizational structures



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R/3

FIFinancialAccounting

COControlling

PSProjectSystemWF

WorkflowISIndustrySolutions

MMMaterials Mgmt.

HRHumanResources

SDSales and Distribution

PPProductionPlanning

QMQualityMgmt.PM

Plant Maintenance

SMServiceMgmt.

Client / ServerIntegrated BusinessSolution

ECEnterpriseControlling

AMFixed AssetsMgmt.

Financial Accounting (FI)



5

Unit 6 – Overview

• General Ledger Master Data– Chart of Accounts Data– Company Code Data– Reconciliation Accounts• Accounts Receivable• Accounts Payable• Goods Receipt/Invoice Receipt

• General Ledger Account Balances



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General Ledger – Master Data

• A unique master record is created for each General Ledger account

• General Ledger accounts are created at the client level

• Business transactions are posted to the portfolio of General Ledger accounts made available to a company through the assignment of a specific Chart of Accounts



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General Ledger – Master Data (continued)

• Contains control information for:– Data entry– Data processing

• Specifies the account type:– Balance sheet – Income statement



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General LedgerOrganization of the Data

• Contains one or more Chart of Accounts specific information areas

• Contains one or more Company Code specific information areas

• In this way, a General Ledger master account can be shared by several combinations of Charts of Accounts and Company Codes



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100101

CPEN

X

BS

Account numberChart of accounts

Account groupP&L statement acct type Balance sheet account

General LedgerChart of Accounts Data

• Account number• Name of the Chart of

Accounts• Account group provides

information that controls the creation of the master record for a company code



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General LedgerCompany Code Data

• Local currency• Foreign currency• Tax category• Open item management• Line item display• Sort key



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General LedgerCompany Code Data (continued)

• Local currency– Specify the currency in which the account is to be

posted– Transaction figures are always updated and

displayed in local currency



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• Foreign currency– Specify the alternative currency in which the

account is to be posted– It is possible to select up to two alternative

currencies– Transaction figures will be updated in both the

local and alternative currencies



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• Tax category– Specify the type of tax on purchase and sales

(input or output taxes) that can be posted to the account

– If the account is not tax relevant, do not make a specification in this field



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• Open item management– Indicates that the account is subjected to an affirmative

clearing process involving the matching of debits to credits with the purpose of closing each individual line item

– “open” or “cleared”– You can only archive an accounting document if all of its

individual line items have been cleared– Or an item is open until an offsetting (debit or credit) entry

is posted to the account– Ex. Amount owed by customer and payment



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• Line item display– Select if it is desirable to view all the debit and credit

detail for the account – Remember that when posting items to such accounts

and displaying line items, additional storage space and system time are required

– If enabled, a link to the line items that are included in the account balances is maintained.

– Line items are the specific debit and credit entries in the documents



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Line Item Display

Account number 100999 Bank AccountCompany code C999

Period Debit Credit DC bal. Balance C/f bal. 750,000.00 Period 1 5,250.00 3,540.00 1,710.00 751,710.00 Period 2 25,000.00 15,000.00 10,000.00 761,710.00

Period 1Doc. no. DT Doc.date Currency Amount 1500000013 KZ 01/05/04 USD 1,800.00 -1500000014 KZ 01/06/04 USD 990.00 -100000012 SA 01/08/04 USD 750.00 –1400000342 DZ 01/14/04 USD 5,250.00



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• Line item display should not be used for the following accounts:– Reconciliation accounts – Accounts that have a summation function and are

analyzed by another application such as revenue or stock accounts

– Output and input tax accounts, since tax information is required only in connection with the document



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• Sort Key– Necessary when line item display is selected – Determines the data field that will be used to sort

the line items• Posting date• Document date• Cost center



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• Reconciliation accounts– When you post to a sub-ledger, the system

automatically concurrently posts to the corresponding reconciliation account in the general ledger

– In this way, the general ledger is automatically updated and remains in balance with the individual account totals

– You cannot post directly to the reconciliation accounts



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Subsidiary Ledger Accounts

A/R, A/P, GR/IR

General Ledger Reconciliation AccountsA/R, A/P, GR/IR


Debit Credit

Debit Credit

A/P

Debit Credit

A/R

Debit Credit

GR/IR

$$ $$

$$ $$$$ $$$$ $$

GeneralLedger



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Accounts Receivable Reconciliation Account

Accounts ReceivableReconciliation

950

300

Customer 142

150

Customer 123

400

Customer 135

100

Customer 189



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Accounts Receivable Integration





MMMaterialsMgmt.

MMMaterialsMgmt.

RevenueIncrease to A/R

GoodsIssue

SalesOrder

Income StatementBalance Sheet



CGSDecrease to Inventory

SDSales and Distribution



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Accounts Payable Reconciliation Account

Accounts PayableReconciliation

950

250

Vendor 100435

200

Vendor 100234

100

Vendor 100621

300

Vendor 100846



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Accounts Payable IntegrationMMMaterialsMgmt.

MMMaterialsMgmt.





Increase to A/PDecrease to GR/IR

GoodsReceipt

Balance Sheet



Increase to InventoryIncrease to GR/IR

InvoiceReceipt

MMMaterialsMgmt.

MMMaterialsMgmt.



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So What is a Reconciliation Account?

• Postings to sub-ledgers (such as accounts receivable or accounts payable) are automatically concurrently posted to the corresponding reconciliation account in the General Ledger

• In this way, the General Ledger is automatically updated and remains in balance with the customer and vendor individual account totals



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Unit 6, Group 1 – Exercises

41. Create Bank Account42. Create Accounts Receivable Reconciliation Account43. Create Trading Goods Inventory Account44. Create Operating Supplies Inventory Account45. Create Accounts Payable Reconciliation Account 46. Create Goods Receipt / Invoice Receipt Reconciliation

Account47. Create Output Tax Account48. Create Input Tax Account49. Create Retained Earnings Account50. Create Common Stock Account



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51. Create Trading Goods Consumption Expense Account52. Create Operating Supplies Expense Account53. Create Utilities Expense Account54. Create Purchase Price Difference Expense Account55. Create Information Technology Expense Account56. Create Miscellaneous Expense Account57. Create Cost of Goods Sold58. Run General Ledger List of Accounts Report

Unit 6, Group 2 – Exercises

MELJUN CORTES Financial Accounting Master Data

Documents

line item

line items

general ledger

university

reconciliation

accounts

posted

account