This post is a continuation of my series on “SAP Financials: Integration with Other SAP Modules” It is the fifth in the series. You may have to read the first four series if you are new to this subject matter.In this post we discuss the necessary account determination configuration settings for postings generated within the SAP-GL module itself.
2 SAP General Ledger Accounting
Just as the General Ledger Accounting is the fundamental component of Financial Accounting, so is the SAP General Ledger Module the central component of SAP Financials. All transactions originating from SAP Financials and from other modules of SAP that handles financial relevant transactions end up in a summarized form in the SAP FI-GL.
Therefore, apart from the postings (manuals journal, periodic processing transactions and so on) that occurred directly in the GL, detailed transactions happened in other SAP Modules and through account determination techniques, these postings are then transferred to the SAP FI-GL in a summarized form.
The Financial Statements of the organization are produced from the SAP FI-GL postings in accordance with the defined accounting principle and Financial Statement versions.
In this post of the book, we discussed the necessary account determination configuration settings for postings generated in the SAP GL module itself. Principally, we can group the discussion in to two:
a) Normal automatic postings (clearing postings, cross company postings, rounding errors and so on), and
b) Periodic procession transactions that originate within the GL Module (foreign currency valuation, accruals/deferrals and so on).
2.1 Basic General Ledger Accounting Settings
Where necessary, as our approach throughout this book, we will be to discuss settings that although not directly related to the subject of integration and account determination, are fundamental to the subject under discussion. This may be necessary for the readers to have an idea about how different parts connects, instead of just jumping to the subject matter.
The concept of Ledger in SAP Financial Accounting
Accounting postings to the SAP General Ledger are done through a defined ledger (a set of accounting books). SAP provides principally two ledger types:
2.1.1 Leading Ledger
This is the main ledger for any self-accounting entity (company code). For each company code, you must designate one ledger as a leading ledger. In each company code, the leading ledger automatically, receives all the settings (fiscal year settings, currency settings, posting period settings and so on) that applies to that company code.
You may use one ledger group, especially if you produce your Financial Statements using one accounting principle, or several ledgers (with one of them as a leading ledger), if you have a requirement to report by more than one accounting principle.
Follow the menu path below for the definition of your leading ledger.
IMG — Financial Accounting (New) – Ledgers – Ledger — Define Ledgers for General Ledger Accounting
Note that ledgers are based on total tables and SAP recommends the use of the delivered standard total table FAGLFLEXT. Flag the checkbox “leading” to indicate that the selected ledger is the Leading Ledger.
Note also that for each ledger that you created a corresponding ledger group of the same name is automatically created by the system. Therefore, if you want to delete a newly created ledger (because may be it was mistakenly created), you delete the ledger group first and then the ledger itself.
2.1.2 Non-leading Ledger
Non-leading or parallel ledgers are additional ledgers that you may be required to define if you need to report using another accounting principle from that assigned to your leading ledger. All postings without valuation difference (due to the different accounting principles) into the non-leading ledger are derived from the leading ledger. Valuation postings that are only valid for a specific accounting principle are posted only into the dedicated ledger setup for that GAAP.
To define and activate non-leading ledgers, follow the menu path below.
IMG — Financial Accounting (New) – Ledgers – Ledger — Define and Activate Non-Leading Ledgers
Alternatively use Transaction S_AL0_19000016
Non-leading ledgers are activated per company code, so you must specify the company code for which you are activating the non-ledger.
In addition, a non-leading ledger may have characteristics that are different from the leading ledger. For example, they may have fiscal year and posting period variants different from the leading ledger. Note that without specifying these values, they are inherited from the leading ledger.
In case of currencies, you may also define additional currencies for your non-leading ledger, although the first currency is derived from the leading ledger.
2.1.3 Define Currencies of Leading Ledger
In this configuration step, you specify the currencies to be applied in the leading ledger. The main currency of the leading ledger is inherited from the company code currency (the local currency). You may however, define additional currencies as parallel currencies.
Define currencies of the leading ledger through the below configuration path.
IMG — Financial Accounting (New) – Ledgers – Ledger – Define Currencies of Leading Ledger
2.1.4 Define Accounting Principles
An accounting principle is a set of rules and procedures guiding accountants, and that organizations must follow in recording and reporting financial transactions. In SAP General Ledger Accounting, we define at least one accounting principle for the purpose of financial reporting.
To define your accounting principle, follow the menu path below.
IMG — Financial Accounting (New) – Ledgers – Parallel Accounting – Define Accounting Principles
In this step, you define your accounting principle(s) that you intend to assign to your ledger groups.
2.1.5 Assign Accounting Principles to Ledger Group
Here, we assign the accounting principle defined above to your ledger group. The assignment of accountings principles to your ledger group is not a mandatory step, if you are using only one ledger and one accounting principle (or if there is no difference in valuation between your defined accounting principles).
Note, that if a valid reason exists, you can assign multiple accounting principles to one ledger group.
To assign your accounting principles to your ledger group, follow the menu path below.
IMG — Financial Accounting (New) – Ledgers – Parallel Accounting – Assign Accounting Principle to Ledger Groups
2.2 Cross-Company Transactions
Within a group environment, it is quite common for Company Codes of the same group to carry out transactions on behalf of each other. They can enter into common investment transactions, for example, where one company invests on behalf of the others and accounts are settled through periodic settlement arrangements.
Instead of manually booking of the resulting cross company receivables and payables, cross company configuration settings are done to enable the system to automatically generate cross company documents. The cross-company code document that is auto generated by the system links the individual documents generated within each company code.
The GL accounts assigned in the account determination configuration settings may be flagged as “Post Automatically Only” to avoid time-consuming reconciliation efforts that can arise from manually posting to such accounts.
The settings for cross company postings is performed through the menu path below:
IMG — Financial Accounting (New) — General Ledger Accounting (New) — Business Transactions — Prepare Cross-Company Code Transactions
Alternatively, use transaction OBYA
Enter the two company codes that you are setting up for automatic cross company postings.
As can be seen in the figure above, the system can make either a receivable (debit) of a payable (credit) posting in each company codes, based on the position of each in the cross company transaction.
You enter the cross company GL account created between the two involved company codes for the purpose of cross company posting. The system will automatically determine the GL account to post to during the cross company document processing from this entry.
Summary
This is the first part of the necessary account determination configuration settings for postings generated in the SAP GL module itself. More post will follow before we conclude this section.
Please do share your thoughts on this topic. We would love to hear your comments and suggestions.
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