S4F10
Business Processes in Financial
Accounting in SAP S/4HANA
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PARTICIPANT HANDBOOK
INSTRUCTOR-LED TRAINING
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Course Version: 20
Course Duration: 5 Day(s)
Material Number: 50158588
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Contents
vii
Course Overview
1
Unit 1:
3
11
19
Lesson: Getting an Overview of SAP S/4HANA
Lesson: Introducing SAP Fiori
Unit 2:
21
29
Unit 3:
Unit 4:
Unit 5:
97
101
105
113
119
Unit 6:
141
147
155
165
171
Accounts Receivable
Lesson: Maintaining Customer Master Records
Lesson: Managing Accounts Receivable Transactions
Lesson: Managing Customer Correspondence
Lesson: Creating Accounts Receivable Dispute Cases
Lesson: Managing the Integration between Accounts Receivable and
Sales Order Management
Lesson: Performing Accounts Receivable Closing Operations
127
163
Accounts Payable
Lesson: Maintaining Vendor Master Records
Lesson: Maintaining Accounts Payable Transactions
Lesson: Managing the Integration between Accounts Payable and
Materials Management
Lesson: Performing Accounts Payable Closing Operations
83
139
General Ledger (G/L) Accounting
Lesson: Outlining Organizational Elements in Accounting
Lesson: Maintaining G/L Master Records
Lesson: Posting Transactions in the G/L
61
65
77
95
Overview of Financial Accounting (FI) in S/4HANA
Lesson: Outlining Financial Accounting (FI) Components in SAP S/
4HANA
31
37
47
59
SAP S/4HANA Overview
Asset Accounting
Lesson: Maintaining Asset Master Records
Lesson: Executing Asset Transactions
Lesson: Executing Asset Accounting Period-End Closing Activities
Unit 7:
Bank Accounting
Lesson: Maintaining Bank Accounting Master Records
Lesson: Managing Bank Accounting Transactions
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183
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Unit 8:
Closing Operations in General Ledger Accounting
Lesson: Performing General Ledger (G/L) Closing Operations
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Course Overview
TARGET AUDIENCE
This course is intended for the following audiences:
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Developer
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User
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UNIT 1
SAP S/4HANA Overview
Lesson 1
Getting an Overview of SAP S/4HANA
3
Lesson 2
Introducing SAP Fiori
11
UNIT OBJECTIVES
●
Getting an Overview of SAP S/4HANA
●
Explain SAP Fiori Application and Tools
© Copyright. All rights reserved.
1
Unit 1: SAP S/4HANA Overview
2
© Copyright. All rights reserved.
Unit 1
Lesson 1
Getting an Overview of SAP S/4HANA
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Getting an Overview of SAP S/4HANA
SAP S/4HANA Finance Learning Journey
Figure 1: Financial Accounting Learning Journey
Learning Journeys are visual guides, designed to help you complete the learning path for
particular SAP solutions. The easiest way to find learning journeys is to search for SAP
Learning Journeys in your browser.
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Unit 1: SAP S/4HANA Overview
The Connected Digital World
Figure 2: The World is Changing
The world has continued to change and so to have business challenges and opportunities.
Today's world is digital and networked.
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The pace of data generation is accelerating - in the last two years, 90% of world data has
been generated.
Over the next two years, there will be 40% growth in the adoption of business networks.
By the end of the decade, 212 billion things, from cars to heavy equipment, to consumer
appliances, will be connected to the internet.
By 2020, there will be 9 billion mobile users in the world.
Last year alone, 51% of workloads were processed in the cloud. That amount will only grow
for the foreseeable future.
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Lesson: Getting an Overview of SAP S/4HANA
Figure 3: Advances in Technology
With so much memory available, we can now store the entire database of even the largest
organizations, completely in memory. This gives you instant access to all data and eliminates
wait times caused by data loading to memory from disk to memory. We can lose the
mechanical spinning disk and the latency it brings, and rely on memory to provide all data
instantly to the CPU. Even though Solid State Devices (SSD) storage is faster than disk, it still
can not compete with memory. So memory is no longer the bottleneck it was previously. To
address large amounts of memory, we also use 64-bit operating systems. Traditional 32-bit
operating systems cannot address the large amounts of memory now available. In addition to
huge memory, CPU performance continues to improve at a phenomenal rate. We now have
high-speed, multi-core CPUs that can take on complex tasks and break them up so they can
be processed in parallel to provide incredible response times. This means that response times
for even the most complex analytical tasks, such as predictive analysis, can be carried out in
real-time. So with huge memory and faster multi-core CPUs, we now have access to huge
amounts of computing power. We can now easily slot more servers into our landscape to add
more processing power or memory in order to scale to any size.
SAP rewrote its business application software to fully exploit the new hardware. SAP worked
closely with leading hardware partners who shared the product blueprints of their new CPU
architectures so that SAP knew how to write the very best modern software to extract as
much power as possible.
Cloud computing technology has matured in the last few years and is now a compelling
deployment option for our customers who do not want to take on the complexity and cost of
the installation and maintenance of IT landscapes. Virtualizing machines means lower costs
associated with running enterprise-wide applications. Public cloud services based on
subscription models increase access to everyone to the latest solutions, reducing the costs
and simplifying everything.
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Unit 1: SAP S/4HANA Overview
Figure 4: Bringing OLTP and OLAP Back Together
In the past, it was necessary to move data away from transactional applications into
dedicated systems so that data could be harmonized and cleaned. As a result, multiple copies
of the data are created. However, even worse, the systems are latent while data is transferred.
This means that we do not have a consistent picture of data across the enterprise at any
moment.
In many business landscapes today, transactions are managed in systems where both the
hardware architecture, database design, and data models are built around fast read/write
processing at the record level. Analysis systems take on a different design approach. The
hardware, database, and data models are built around batch loading, aggregated storage, and
a focus on read-intensive queries and caching. That is why online transaction systems (OLTP)
and online analytical processing systems (OLAP) are often separated and linked through
interfaces through which data is lifted and shifted periodically. This approach means delays in
the analysis of the transactional data. It is not unusual to have to wait the next day before
analysis can begin on the transactional data.
SAP HANA can bring transactional and analysis requirements into one platform. The acronym
for this type of consolidated system is Hybrid Transaction/Analytical Processing (HTAP). The
database, hardware, and data model of SAP HANA are built to handle combined transactional
and analytical processing. No movement of data is necessary and transactional and analytical
users work from the same, single copy of the data. This means we have live data available to
all applications in real-time. This reduces the complexity by removing the need to move data
using separate software and interfaces. It also means that new innovative applications can be
built that combine transactions and analytics such as those found in SAP S/4HANA.
6
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Lesson: Getting an Overview of SAP S/4HANA
SAP S/4HANA - The Intelligent Core
SAP S/4HANA - The Intelligent Core
Figure 5: SAP S/4HANA in the Intelligent Enterprise: Big Picture
SAP believes that best-run businesses are intelligent enterprises. They apply advanced
technologies and best practices within agile, integrated business processes. This graphic
shows the Intelligent Enterprise solution portfolio and how the pieces come together.
The Intelligent Enterprise comprises four core components:
1. The Business Collaboration component focuses on being able to connect and collaborate
with external and internal business partners to bridge the gap between locations,
organizations, and system landscapes. An example of collaboration would be the use of
the Ariba Network, where the company can find, interact, and collaborate with suppliers.
2. The Business Process component focuses on the end-to-end scenario for each business
transaction and has the integration of these processes as a top priority. In this training, we
will focus on the financial portions of the business processes.
3. The Business Applications component focuses on the solutions to record data for the
Intelligent Enterprise. In this training, we will focus on the SAP S/4HANA solution.
4. The Business Technology component focuses on the technical infrastructure and
information management that introduce the intelligence into the Intelligent Enterprise.
Let us look in more detail:
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Business network - helps customers digitalize cross-company business processes. The
network builds on our procurement, travel, and contingent workforce solutions. It helps
our customers work together to build flexible value chains.
Experience management - helps organizations evaluate and act on the customer, partner,
and employee sentiment. Understanding what your stakeholders want and how they feel is
critical to making the right decisions
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Unit 1: SAP S/4HANA Overview
●
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Intelligent suite - helps to run agile, integrated business processes. We help manage every
part of the organization - employees, customers, products, spending, finance, and IT. With
embedded analytics, we offer a 360-degree view of the business.
Industry cloud - allows customers to discover and deploy vertical solutions from SAP and
partners. These help customers apply leading-edge industry best practices and extend
current business processes.
Sustainability management - helps customers understand and manage their impact on
people and the environment. Climate 21 is the name of our initiative behind our new crop of
sustainability management solutions. These solutions help businesses understand and
manage greenhouse gas emissions.
Business Technology Platform - provides data management and analytics and supports
application development and integration. It also allows our customers to use intelligent
technologies - such as artificial intelligence, machine learning, and the Internet of Things to drive innovation.
A key part of the strategy is the integration of end-to-end processes. SAP made integrating
these processes a top priority. Our breadth of solutions makes this possible.
Universal Journal Enables Continuous Accounting
Figure 6: Universal Journal Enables Continuous Accounting
The universal journal is now the single source of truth. Each posting creates line items in the
universal journal table (ACDOCA) that combines all data entered in the different financial
components into one single structure.
The data model has been massively simplified. This means we lost unnecessary tables and
the data in those tables in order to shrink the footprint dramatically and simplify the
application design and extensibility.
8
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Lesson: Getting an Overview of SAP S/4HANA
SAP S/4HANA - Deployment Options
SAP S/4HANA Consistent Choice for Cloud and On-Premise
Figure 7: SAP S/4HANA Consistent Choice for Cloud and On-Premise
SAP S/4HANA's simplified data model and modern user experience are consistent for both
cloud and on-premise. When it is time to deploy SAP S/4HANA, the choices are on-premise or
in the cloud. Either way, SAP S/4HANA maintains consistency with the data model, user
experience, and code line. SAP S/4HANA and SAP S/4HANA Cloud offer a consistent
solution, allowing you to benefit in any scenario or combination.
There are many factors in making the on-premise or cloud deployment decision, but they can
be simplified into a few major dimensions:
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IT Strategy: Increasingly, customers are taking a "cloud-first" approach to their ERP
system landscape. It is important to verify that the scope of the standard best practices in
SAP S/4HANA Cloud will serve your business requirements, and whether this should be
complemented with extended functionality (lines of business, industry-specific) through a
co-deployment with SAP S/4HANA Cloud, single-tenant edition, for example.
Innovation Cycles: Updates to SAP S/4HANA Cloud are provided on a quarterly innovation
cycle. SAP regularly delivers the latest in machine learning, natural language processing,
predictive analytics, and more in a non-disruptive, easy-to-consume manner. SAP S/
4HANA Cloud, single-tenant edition is offered with 2 upgrades per year, while SAP S/
4HANA on-premise is offer with one annual upgrade.
Business Functionality: The available scope for each deployment option will vary, allowing
choices for licensing and deployment.
Deployment times: The deployment of SAP S/4HANA can be accelerated in the cloud for
many customers, since they do not need to acquire and maintain infrastructure.
Regulatory, industry, and regional requirements: Some customers may have requirements
in these areas that make cloud unsuitable. If this is the case, then they can continue with
traditional on-premise deployment. Or, if they have differing requirements for various
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Unit 1: SAP S/4HANA Overview
subsidiaries, they can mix-and-match cloud and on-premise deployment in a 2-tier
strategy and still maintain consistency for IT and business users.
Figure 8: SAP S/4HANA Deployment Options
With SAP S/4HANA, you can choose the environment - from software as a service (SaaS) to
private cloud supported by hyperscale computing to on-premise - that uses the best aspects
of the cloud to accelerate your time to value and increase business agility, while balancing
customization, standardization, and control:
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Cloud - Maximize agility with standardized processes built from proven best practices in
every industry, new innovations as frequently as four times per year, fast time to value,
and lower TCO. Available as private or public cloud solution with the characteristics shown
in the figure.
Any premise - Optimize your capacity for specialization by deploying SAP S/4HANA in
your own data center or utilizing an infrastructure-as-a-service provider and customize
and extend SAP S/4HANA with complete control of your environment.
LESSON SUMMARY
You should now be able to:
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10
Getting an Overview of SAP S/4HANA
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Unit 1
Lesson 2
Introducing SAP Fiori
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Explain SAP Fiori Application and Tools
SAP Fiori Application and Tools
Scenario
You want to ensure that your users have the best possible experience when interacting with
SAP Business Suite. You want to ensure that users can access critical business applications
on any device without compromises. Finally, you want to ensure that the solution integrates
with your existing IT system landscape and can expand to cover your specific needs. You
want to make sure that SAP Fiori meets these requirements.
SAP Fiori User Experience Paradigm
Figure 9: SAP Fiori User Experience Paradigm
The SAP Fiori user experience paradigm consists of the following pillars:
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Role-based: Users have access to the applications where they perform their tasks, and the
applications are specific to completing this task.
Responsive: The application interface is responsive; it adapts to the size and device used
by the users to access it.
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Unit 1: SAP S/4HANA Overview
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Simple: The scope of the application is simple. There is one user, one use case, and up to
three screens for each application.
Coherent: The applications are developed with a coherent structure. The apps all speak
the same language and can be implemented in multiple landscapes and environments.
Instant value: A low adoption barrier provides instant value, both on the IT-system side and
the user-adoption side.
Figure 10: SAP Fiori
The SAP Fiori launchpad is the single point of entry to access all applications - directly using
tiles or links, or by using Search. SAP Fiori offers a harmonized look and feel across all SAP
products with embedded intelligent user guidance with cross-product and cross-device
integration through comprehensive and adaptive home-pages, and notifications.
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Role-based simplification of business processes
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From monolithic solutions to activity-based apps
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Empowerment of users and the way they work
Harmonized look and feel across all SAP products.
Embedded intelligent user guidance through Machine Learning, dynamic home pages, and a
digital assistant.
Cross-product and cross-device integration through comprehensive and adaptive homepages, a digital assistant, and notifications.
Domain-specific infos and actions:
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Users can quickly get an overview of what needs their attention with Overview Pages, List
Reports, and Work Lists. Notifications provide an additional channel for alerting on urgent
tasks or requests.
Users can trigger quick actions - such as extending a contract, changing a delivery date or drill down to the next level of detail. Users can also invoke the SAP CoPilot, an intelligent
assistant supporting ad-hoc tasks in the context of their business activity.
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Lesson: Introducing SAP Fiori
Enter details and explore them in depth. Lower down the pyramid, key and differentiating use
cases will be re-imagined with the SAP Fiori user experience for example looking at all details
of a business object through an Object Page, or changing frequently updated fields in a sales
order (amount, date, new items).
Transaction Apps, Analytical Apps, and Fact Sheets
Figure 11: Transaction Apps, Analytical Apps, and Fact Sheets
Transaction apps offer task-based access to tasks like change, create, display (documents,
master records), or entire processes with guided navigation.
Analytical apps provide insight into action. They give you a visual overview of complex topics
for monitoring or tracking purposes.
Fact Sheets allow you to search and explore your data. They provide a 360-degree view of
essential information about an object and contextual navigation between related objects.
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Unit 1: SAP S/4HANA Overview
SAP Fiori Launchpad Features
Figure 12: SAP Fiori Launchpad Features
The SAP Fiori launchpad offers themes and can be personalized to meet branding
requirements.
It offers a stable URL for bookmarking and sharing. It is browser-based and therefore works
with multiple devices and browsers.
The SAP Fiori launchpad also offers active tiles through which the user can receive updated
information directly from the front page without opening the application.
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Lesson: Introducing SAP Fiori
SAP Fiori Launchpad User Personalization
Figure 13: SAP Fiori Launchpad User Personalization
The following personalization options are available to users in SAP Fiori launchpad:
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Adding applications from the catalog assigned to them
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Removing applications that they do not want to use
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Modifying and adding applications for filtered report results
For example, if the user is a group cash manager who is interested in the German market, the
user can create an application to take them directly to the cash position of the German
market. They can arrive at the cash position directly with one click from the SAP Fiori
launchpad home page.
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Unit 1: SAP S/4HANA Overview
SAP Fiori Launchpad - Pages and Spaces
Figure 14: Fiori Launchpad Pages
The spaces mode was developed to offer more flexibility to influence the SAP Fiori launchpad
layout for specific user groups. Pages are assigned to users using spaces that are assigned to
business roles. The business role defines which users see a specific space. If you enable
spaces for your users and define specific spaces and pages for them you can reach a better
fit. By defining pages with meaningful sections you can define in which order the apps are
sorted on the page. You can, for example, sort the most used apps in the top-level section and
then create separate sections for apps that belong together. SAP delivers predefined spaces
and pages that you can use to start.
LESSON SUMMARY
You should now be able to:
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16
Explain SAP Fiori Application and Tools
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Unit 1
Learning Assessment
1. How SAP S/4HANA can be deployed to receive all software updates automatically?
Choose the correct answer.
X
A On-premise
X
B Cloud
X
C Central Finance
X
D Virtual
2. Deciding about the best fitting SAP S/4HANA deployment option for SAP S/4HANA for
your business, which dimensions come into your mind?
3. Which different types of SAP Fiori Apps can be used?
4. On the SAP Fiori launchpad, users can choose personalization options.
Determine whether this statement is true or false.
X
True
X
False
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Unit 1
Learning Assessment - Answers
1. How SAP S/4HANA can be deployed to receive all software updates automatically?
Choose the correct answer.
X
A On-premise
X
B Cloud
X
C Central Finance
X
D Virtual
Correct. With the cloud deployment option, you ensure your system is automatically
updated to the latest release.
2. Deciding about the best fitting SAP S/4HANA deployment option for SAP S/4HANA for
your business, which dimensions come into your mind?
IT Strategy; Innovation Cycles; Business Functionality; Deployment times; Regulatory,
Industry and regional requirements
3. Which different types of SAP Fiori Apps can be used?
Three different possible SAP Fiori App Types are as follows: Transactional Apps, Analytical
Apps, and Fact Sheets
4. On the SAP Fiori launchpad, users can choose personalization options.
Determine whether this statement is true or false.
X
True
X
False
Correct. The SAP Fiori Launchpad enables the user to adapt the launchpad according to
their own needs.
18
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UNIT 2
Overview of Financial
Accounting (FI) in S/4HANA
Lesson 1
Outlining Financial Accounting (FI) Components in SAP S/4HANA
21
UNIT OBJECTIVES
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Describe financial accounting (FI) components in SAP S/4HANA
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19
Unit 2: Overview of Financial Accounting (FI) in S/4HANA
20
© Copyright. All rights reserved.
Unit 2
Lesson 1
Outlining Financial Accounting (FI)
Components in SAP S/4HANA
LESSON OVERVIEW
This lesson provides an overview of the basic financial accounting components in SAP S/
4HANA.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Describe financial accounting (FI) components in SAP S/4HANA
FI Components in SAP S/4HANA
Figure 15: Financial Accounting Overview
General Ledger Accounting (FI-GL)
The central task of the general ledger FI component is to use accounts to provide a
comprehensive picture for external accounting. Recording all value-related 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.
Features of the general ledger application component include the following:
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Free choice of level: corporate, group, or company
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Unit 2: Overview of Financial Accounting (FI) in S/4HANA
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Automatic and simultaneous posting of all sub-ledger items in the appropriate general
ledger accounts (reconciliation accounts)
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 real-time processing by displaying the original
documents, line items, and transaction figures at various levels, such as the following:
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Account information
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Journals
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Totals/transaction figures
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Balance sheet/profit and loss evaluations
Accounts Payable (FI-AP)
Figure 16: Financial Accounting Overview (2)
The Accounts Payable application component records and administers the accounting data
for all vendors. It is also an integral part of the purchasing system, where deliveries and
invoices are managed according to vendors. The system automatically makes postings in
response to the operative transactions. In the same way, the system supplies the Cash
Management application component with figures from invoices in order to optimize liquidity
planning.
Features of the Accounts Payable application component include the following:
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22
Payables are paid with the payment program. The payment program supports all standard
payment methods (such as checks and transfers) in printed form as well as in electronic
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Lesson: Outlining Financial Accounting (FI) Components in SAP S/4HANA
form (data medium exchange and electronic data interchange). This program also covers
country-specific payment methods.
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If necessary, dunning notices can be created for outstanding receivables (for example, to
receive payment for a credit memo). The dunning program supports this function.
Postings made in Accounts Payable are simultaneously recorded in the General Ledger,
where different G/L accounts are updated based on the transaction involved (such as
payables and down payments). The system contains due-date forecasts and other
standard reports that you can use to help you monitor open items.
You can configure balance confirmations, account statements, and other notifications to
suit your correspondence requirements. There are balance lists, journals, balance audit
trails and other evaluations available for documenting transactions in Accounts Payable.
Accounts Receivable (FI-AR)
Figure 17: Financial Accounting Overview (3)
The Accounts Receivable application component records and administers accounting data of
all customers. It is also an integral part of sales management.
Features of the Accounts Receivable application component include the following:
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All postings in Accounts Receivable are also recorded directly in the General Ledger.
Different G/L accounts are updated depending on the transaction involved (for example,
receivables, down payments, and bills of exchange).
The system contains a range of tools that you can use to monitor open items, such as,
account analysis, alarm reports, due date lists, and a flexible dunning program.
The correspondence linked to these tools can be individually formulated to suit your
requirements. This is also the case for payment notices, balance confirmations, account
statements, and interest calculations.
Incoming payments can be assigned to due receivables using user-friendly screen
functions or by electronic means such as EDI and data telecommunication.
The payment program can automatically carry out direct debiting and down payments.
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Unit 2: Overview of Financial Accounting (FI) in S/4HANA
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There is a range of tools available for documenting the transactions that occur in Accounts
Receivable, including balance lists, journals, balance audit trails, and other standard
reports. When drawing up financial statements, the items in foreign currency are revalued,
customers who are also vendors are listed, and the balances on the accounts are sorted by
remaining term.
Accounts receivable is not only one of the branches of accounting that form the basis of
adequate and orderly accounting, it also provides the data required for effective credit
management (because of its close integration with the Sales and Distribution component)
and important information for the optimization of liquidity planning (through its link to
Cash Management).
Asset Accounting (FI-AA)
Figure 18: Financial Accounting Overview (4)
The Asset Accounting (FI-AA) component is used for managing and supervising fixed assets
with the SAP System. In Financial Accounting, it serves as a subsidiary ledger to the General
Ledger, providing detailed information on transactions involving fixed assets.
Features of Asset Accounting include the following:
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24
The Asset Accounting component is intended for international use in many countries,
irrespective of the nature of the industry. This means, for example, that no countryspecific valuation rules are hard-coded in the system. You give this component its countryspecific and company-specific character with the settings you make in Customizing. To
minimize the time and energy involved in customizing, country-specific defaults are
provided in the standard system where possible.
As a result of the integration in the SAP System, Asset Accounting (FI-AA) transfers data
directly to and from other SAP components. For example, it is possible to post from the
Materials Management (MM) component directly to FI-AA. When an asset is purchased or
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Lesson: Outlining Financial Accounting (FI) Components in SAP S/4HANA
produced in-house, you can directly post the invoice receipt or goods receipt, or the
withdrawal from the warehouse, to assets in the Asset Accounting component. At the
same time, you can pass on depreciation and interest directly to the Financial Accounting
(FI) and Controlling (CO) components. From the Plant Maintenance (PM) component, you
can settle maintenance activities that require capitalization to assets.
Bank Accounting (FI-BL)
Figure 19: Financial Accounting Overview (5)
The Bank Accounting application component is used to handle accounting transactions that
you process with your bank.
Features of the Bank Accounting application component include the following:
●
●
It includes the management of bank master data, cash balance management (check and
bill of exchange management), and the creation and processing of incoming and outgoing
payments.
It is possible to freely define all country-specific characteristics, such as the specifications
for manual and electronic payment procedures, payment forms, or data media.
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Unit 2: Overview of Financial Accounting (FI) in S/4HANA
Layout of a Financial Statement
Figure 20: Financial Statement Layout
The figure, Financial Statement Layout, shows an example of a country-specific structure.
The structure always depends on customer-specific requirements.
Synonyms for “financial statement” include the following:
●
Balance sheet
●
Statement of financial condition
Note:
Guidelines for balance sheets of public business entities are given by the
International Accounting Standards Board and numerous country-specific
organizations/companies.
LESSON SUMMARY
You should now be able to:
●
26
Describe financial accounting (FI) components in SAP S/4HANA
© Copyright. All rights reserved.
Unit 2
Learning Assessment
1. List at least three Financial Accounting components in SAP S/4HANA.
2. Postings made in subledgers like Accounts Payable and Accounts Receivable are
simultaneously recorded in the General Ledger.
Determine whether this statement is true or false.
X
True
X
False
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27
Unit 2
Learning Assessment - Answers
1. List at least three Financial Accounting components in SAP S/4HANA.
FI-GL (General Ledger), FI-AP (Accounts Payable), FI-AR (Accounts Receivable), FI-AA,
(Asset Accounting), FI-BL (Bank Accounting)
2. Postings made in subledgers like Accounts Payable and Accounts Receivable are
simultaneously recorded in the General Ledger.
Determine whether this statement is true or false.
X
True
X
False
Correct. Each subledger (like Account Payable) has one (or more) reconciliation accounts
in the general ledger. These reconciliation accounts ensure that the balance of G/L
accounts is always zero.
28
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UNIT 3
General Ledger (G/L)
Accounting
Lesson 1
Outlining Organizational Elements in Accounting
31
Lesson 2
Maintaining G/L Master Records
37
Lesson 3
Posting Transactions in the G/L
47
UNIT OBJECTIVES
●
Assign company codes to a controlling area
●
Maintain G/L master records
●
Post transactions in the G/L
© Copyright. All rights reserved.
29
Unit 3: General Ledger (G/L) Accounting
30
© Copyright. All rights reserved.
Unit 3
Lesson 1
Outlining Organizational Elements in
Accounting
LESSON OVERVIEW
Organizational structures occur in all important functional areas of the SAP System. The most
important organizational element in FI is the company code. It is the smallest organizational
unit of FI for which a complete self-contained set of accounts can be drawn up for the
purposes of external reporting. Other important organizational elements are the profit center,
business area, and the segment. You can create a fully-balanced set of financial statements
for each profit center, business area, and segment.
The most important organizational element of the controlling application (CO) is the
controlling area. In this lesson, we look at the options for assigning one or more company
codes to a controlling area.
Business Example
The sample company consists of different companies all over the world. Each company must
fulfill national reporting requirements and is therefore represented by a company code.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Assign company codes to a controlling area
Company Code
A company code is an independent accounting entity; the smallest organizational element for
which a complete self-contained set of accounts can be drawn up. An example of a company
code is a company within a corporate group.
A company code has a unique, four-character key, which can be alphanumeric.
Each company code has a local currency. Amounts posted in foreign currencies are
automatically converted to the local currency.
Figure 21: Company Code
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31
Unit 3: General Ledger (G/L) Accounting
General Ledger Accounting is kept at the company code level. It is used to create the legally
required balance sheets and profit-and-loss statements for the company code.
The company code must be specified for every financial transaction in SAP S/4HANA. This is
done either manually or by deriving the company code from other data elements.
Overview of Organizational Units in Accounting
Figure 22: Overview of Organizational Units in Accounting
Controlling Area
The Controlling Area is an organizational unit that represents a closed system used for cost
accounting purposes. A controlling area may contain one or more company codes, which can
operate in different currencies, if required. The company codes within a controlling area must
all use the same operational chart of accounts and fiscal year variant.
Operating Concern
The Operating Concern represents a part of an organization for which the sales market is
structured in a uniform manner. By setting off the costs against the revenues, you can
calculate an operating profit for the individual market segments, which are defined by a
combination of classifying characteristics (such as product group, customer group, country,
or distribution channel). The market segments are called profitability segments. You can
assign multiple controlling areas to one operating concern.
Parallel Financial Reporting
Many companies not only have to create reports according to one specific accounting
principle, they also need to meet different information requirements (country-specific
requirements, corporate group standards, and so on). This means that financial statements
have to be created, for example, according to local accounting standards like the U.S.
Generally Accepted Accounting Principles (GAAP) or the German Commercial Code (HGB)
and the International Financial Reporting Standards (IFRS).
32
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Lesson: Outlining Organizational Elements in Accounting
Parallel Financial Reporting – Accounts Approach
Figure 23: Parallel Financial Reporting – Accounts Approach
The accounts approach was formerly used in this context often. Different valuation
approaches post to different accounts (only in cases of differences between the principles for
topics like valuation, depreciation, or accruals). When financial statements are created, the
financial statement version is used to evaluate the relevant accounts. For example, financial
statements according to U.S. GAAP only take into account those accounts that follow this
accounting principle.
Parallel Financial Reporting (Ledger Approach)
The ledger approach in S/4HANA allows you (within General Ledger Accounting) to manage
multiple “general ledgers” in parallel and in this way create different financial statements.
Ledger solution is strongly recommended for new systems (Greenfield Approach) these days.
Figure 24: Parallel Financial Reporting – Ledger Approach
In General Ledger Accounting, one ledger has the role of the “leading” ledger.
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33
Unit 3: General Ledger (G/L) Accounting
You can also manage accounts in parallel using additional accounts (accounts approach). In
this case, there is exactly one ledger in General Ledger Accounting – the leading ledger.
Profit Centers
In SAP S/4HANA, profit centers can be part of Financial Accounting. That means that the
profit center information is stored in the universal journal table*. As company codes, the
profit centers function as a dimension for financial reporting. This means that financial
statements can be created for profit centers as standard.
Note:
* In SAP ERP with Classic G/L, Profit Center Accounting is part of Controlling. The
respective CO component is called Enterprise Controlling – Profit Center
Accounting (EC-PCA). It is still possible to use EC-PCA as a controlling component
in an SAP S/4HANA system (for example, after migration from SAP ERP to SAP
S/4HANA), however it is not recommended that both approaches to profit center
accounting are used in parallel.
Figure 25: Profit Center
A profit center can represent many things:
●
An organizational unit within the company (such as a plant)
●
A line of business
●
A geographical location
Remember that this is a "profit" area of responsibility and must not be confused with a cost
center. Profit centers are not separate components, but rather an integral part of General
Ledger Accounting itself.
34
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Lesson: Outlining Organizational Elements in Accounting
Segments
Segments can be used for reporting, for example, it can be used for segment reporting in IFRS
and U.S. GAAP.
The aim of segment reporting is to:
●
Provide an insight into the different business activities of a diversified company.
●
Provide information about the general environment.
The purpose of segment reporting is to:
●
Provide a better overview of a company's economic performance.
●
Improve forecasting of the potential sales and financial reserves of a company.
●
Better anticipate the risks and opportunities of a company.
Figure 26: Segment
According to international accounting principles (IFRS 8), companies are obliged to provide
information in their reports on the financial results of business segments (operating
segments).
A reportable segment is an operating segment for which either reported revenue is 10% or
more of the combined revenue of all operating segments, or its assets are 10% or more of the
combined assets of all operating segments.
To achieve accurate segment reporting in SAP S/4HANA, the segment is maintained on the
line items of accounting documents at the time of posting. The segment to be posted is
generally derived from the profit center and not entered manually. Cost and revenue
allocation postings carried out in Management Accounting at period end also update the
segment in Financial Accounting. In this way, segment reporting stays consistent with what
the business perceives as actual.
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35
Unit 3: General Ledger (G/L) Accounting
Defining a Segment
Figure 27: Defining a Segment
The SAP system enables you to save a segment in the master data of a profit center. When
the posting is made to the profit center, the posting is made to the segment automatically.
LESSON SUMMARY
You should now be able to:
●
36
Assign company codes to a controlling area
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Unit 3
Lesson 2
Maintaining G/L Master Records
LESSON OVERVIEW
In this lesson, we examine General Ledger (G/L) accounts in detail. We also discuss the
reasons why a company code may have more than one chart of accounts in certain situations.
Business Example
A company code must be assigned to an operating chart of accounts for postings to occur for
that company code. A chart of accounts is a list of G/L accounts to which one or more
company codes may post. In order to post to a G/L account, a company code must have its
own specific segment of the G/L account master record created in addition to the chart of
accounts segment, which just exists once, and pertains to all company codes.
Your company has decided to increase capital with corporate funds. In addition, your
company requires a new G/L account for that increase in equity.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Maintain G/L master records
Chart of Accounts
Each general ledger is set up according to a chart of accounts. The chart of accounts contains
the definitions of all G/L accounts in an ordered form. The definitions consist mainly of the
account number, account name, and the type of G/L account, that is, whether the account is
for example a Primary Cost or Revenue account type or a balance-sheet-type account.
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Unit 3: General Ledger (G/L) Accounting
Figure 28: Charts of Accounts
You can define an unlimited number of charts of accounts in the SAP system. Many countryspecific charts of accounts are included in the standard system.
Figure 29: Chart of Accounts Assignment
For each company code, you must specify one chart of accounts for the general ledger. This
chart of accounts is assigned to the company code in configuration and is referred to as its
operating chart of accounts.
A chart of accounts can be used by multiple company codes as shown in the figure, Chart of
Accounts Assignments. This means that the G/L accounts of these company codes have an
identical structure.
38
© Copyright. All rights reserved.
Lesson: Maintaining G/L Master Records
Company Code Settings
Before you can use an account in a company code, you have to maintain the account
definition at the chart of accounts level. You then create company code-specific settings,
which are only valid in the company code. An example of a company code-specific setting is
defining the account currency. Most of the accounts in company code 1010 use the EUR
currency, whereas company code 1710 uses USD for most of its accounts. When the account
currency is the local currency of the company code, one can post to that account in any
currency.
Figure 30: Company Code-Specific Settings
Account groups are used to organize and manage a large number of G/L accounts. Whenever
a G/L account is created, an account group must be specified for it.
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39
Unit 3: General Ledger (G/L) Accounting
Figure 31: Account Groups for G/L Accounts
Accounts with the same account group normally have similar business functions. You can, for
example, have an account group for:
●
Cash accounts
●
Expense accounts
●
Revenue accounts
●
Other balance sheet accounts
The account groups are assigned number ranges. You can control which account numbers
are permissible for cash accounts, expense accounts, and so on, through the number ranges.
Account groups also control the appearance of the company code segment of G/L accounts.
Account groups control:
40
●
The fields that are required for data entry.
●
The fields that are optional for data entry.
●
The fields that do not show up at all in the company code segment.
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Lesson: Maintaining G/L Master Records
G/L Account Type
Figure 32: G/L Account Type
G/L accounts are classified into the following G/L Account Types:
Balance Sheet Account:*
Account that is posted from business transactions. The balance of a balance sheet account is
carried forward at fiscal year-end.
Cash Account (Bank Reconciliation Account):
A G/L account that can be assigned to more than one house bank account. For each house
bank account, a G/L account is required, to which payment transactions are posted. With the
cash account the number of such G/L accounts can be significantly reduced.
Nonoperating Expense or Income:
Income statement account that records expenses or gains from activities that are not part of
the main purpose of the company, such as gains realized from financial investments by a
manufacturing company.
Primary Costs or Revenue:
Income statement account that functions as a cost element for primary costs or revenue.
Primary costs reflect operating expenses such as payroll, selling expenses, or administration
costs.
Secondary Costs:
Income statement account that functions as a cost element for secondary costs. Secondary
costs result from value flows within the organization, such as internal activity cost allocations,
overhead allocations, and settlement transactions.
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41
Unit 3: General Ledger (G/L) Accounting
The controlling area specific data is only needed for Secondary Costs and Primary Costs or
Revenue accounts. In the controlling area specific data, you have to assign a Cost Element
Category. This category determines which account can be used for which business
transaction in CO.
For example: The cost element category 21 (Internal Settlement) is assigned to a secondary
cost account master record. This secondary cost account can only be used to settle order
costs or project costs to objects in Controlling (CO).
*Asset and material balance sheet accounts can optionally be integrated in Controlling if a)
Asset accounts are defined as “reconciliation account” and b) the accounts are assigned in
the corresponding account determination configuration in asset accounting or materials
management customizing.
Figure 33: Fiori App Manage G/L Account Master Data
The figure, Fiori App Manage G/L Account Master Data, shows the chart of account (general)
data, the entry to company code-specific data and Controlling Area-specific data.
42
© Copyright. All rights reserved.
Lesson: Maintaining G/L Master Records
Reconciliation Accounts
Figure 34: Reconciliation Accounts
Reconciliation accounts connect subsidiary ledgers with the general ledger in real time. This
means that a posting to a subsidiary ledger posts to the corresponding reconciliation account
in the general ledger at the same time.
The subsidiary ledgers, which are connected to the general ledger through reconciliation
accounts, are:
●
Accounts payable
●
Accounts receivable
●
Asset accounting
●
Contract accounting
Financial Statement Versions
A general ledger provides the information needed to create a balance sheet and a profit-andloss statement. These reports have to meet country-specific requirements. Our demo
company needs to create financial statements based on the German Commercial Code (HGB)
for company code 1010 (Germany), and based on the U.S. Generally Accepted Accounting
Principles (GAAP) for company code 1710 (USA).
To meet the various reporting requirements, various financial statement versions can be
created in the SAP system. In these financial statement versions, you define exactly which
accounts are to appear in which line items of the financial statement. Many financial
statement versions are included in the SAP system.
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43
Unit 3: General Ledger (G/L) Accounting
Figure 35: Financial Statement Version
When running financial statement reports, select a financial statement version that contains
the details of the report structure.
Our two demo company codes 1010 (DE) and 1710 (USA) use the YCOA as operational chart
of accounts.
Country-Specific Chart of Accounts
It is particularly important to the demo company board of directors that the company codes
all belong to the same controlling area. A great deal of activity takes place among these
company codes. Therefore, all company codes are assigned to the same operating chart of
accounts (YCOA).
However, in certain countries, financial reports must be submitted to the
respective authorities using the corresponding country-specific chart of accounts. To enable
the account numbers from the individual countries to be used in legal reports, a countryspecific chart of accounts was created for these three company codes. These countryspecific charts of accounts meet the reporting requirements of the respective countries.
In the company code segment of the master record, each G/L account must be assigned to
an account from the country chart of the company code. This is done using the Alternative
account number field.
Each account number from a country-specific chart of accounts can only be used once.
Group Chart of Accounts
If not all company codes of the demo company group use the same operating chart of
accounts, a group chart of accounts (CONS) can be used for consolidation purposes. The
operating charts of accounts are assigned to this group chart in configuration.
Once an operating chart has been assigned to a group chart, the Group account number field
becomes required in the chart of accounts segment of the master record.
44
© Copyright. All rights reserved.
Lesson: Maintaining G/L Master Records
It is possible to assign several accounts of an operating chart of accounts to one group
account number.
In summary, only the operating chart of accounts is posted. Country chart of accounts and
group chart of accounts assist only for reporting purposes, and if necessary, consolidation
purposes.
LESSON SUMMARY
You should now be able to:
●
Maintain G/L master records
© Copyright. All rights reserved.
45
Unit 3: General Ledger (G/L) Accounting
46
© Copyright. All rights reserved.
Unit 3
Lesson 3
Posting Transactions in the G/L
LESSON OVERVIEW
In this lesson, we learn how to create G/L postings using different entry screens. First, we
analyze the structure of the financial document. Then, we examine the effects of the postings
by analyzing the transactions on the posted accounts and by running the balance sheet. We
also identify how to integrate external and internal Accounting by using G/L accounts with
account type Primary Costs or Revenue.
Business Example
Accountants create a large number of journal entries as part of their daily work. In SAP,
accountants can use different entry screens. In all methods, G/L account postings are
automatically listed in the income statement report (as long as the accounts are included in
the financial statement version). You can also display the respective postings when querying
posted accounts.
Your company is planning to increase capital with corporate funds. This business transaction
will be reflected in a G/L posting to the new equity account we created in the previous lesson.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Post transactions in the G/L
G/L Posting Transactions
You can easily create and post a G/L account document using the Fiori App Post General
Journal Entries. The entry screen of the Fiori App Post General Journal Entries is divided into
multiple areas as shown in the figure, Fiori App - Post General Journal Entries.
Figure 36: Fiori App - Post General Journal Entries
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47
Unit 3: General Ledger (G/L) Accounting
Header data
Header data applies to the whole document, such as posting date and document type.
Line item information
Enter the line items of the document here.
Tax Items
Enter tax items details, for example if the system should calculate the taxes
automatically during simulation or posting, here.
Select Templates
Here, you can select templates as references.
To save time and effort when entering information for numerous journal entries, create
journal entry templates that match your specific needs using the Manage Journal Entry
Templates app. When you create a journal entry template, you select those fields and values
that you need for a specific use, such as for submitting and posting journal entries. When you
create a journal entry template, you can also choose to make it public, that is, share it with
other users in your organization.
Figure 37: Standard/Complex Postings
Accounting Documents
Complex or general postings correspond to the old, standard posting transaction, FB01.
1. In the initial screen, you enter the data for the document header. Additionally, you enter
the posting key and the account for the first line item. The posting key provides the
system with information regarding the account type (G/L account, customer, vendor,
asset, and material) and can influence the layout of the entry screen for the line item,
which will be seen in the next screen. The key driver for the layout of the line item entry
screen is the field status group of the account that is being posted to.
48
© Copyright. All rights reserved.
Lesson: Posting Transactions in the G/L
2. The detailed entry screen for the first line item is set up. When you press Enter, you
proceed to the next screen. It contains the Amount and Additional account assignment
fields for the first line item. This includes, for example, business area, cost center, or profit
center.
3. At the bottom of the second screen, you enter the posting key and account for the second
line item of the posting. When you press Enter, you proceed to the third screen, which
contains the Amount and Additional account assignment fields for the second line item.
4. To pass information from Financial Accounting to Management Accounting (Controlling),
the accounting type Primary Costs or Revenue in the master data of the expense account
to be posted to, must be defined. Cost/revenue elements only exist for P&L accounts.
Figure 38: Create G/L Account Posting: First Screen (Complex)
Figure 39: Create G/L Account Posting: Second Screen (Complex)
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49
Unit 3: General Ledger (G/L) Accounting
Document Types
Figure 40: Important Standard Document Types
Document types are used to distinguish between and order various accounting documents
easily. Each document is assigned to a document type, which is entered in the document
header. Document numbers are provided by the document number ranges assigned to one or
more document types.
Posting Keys
Figure 41: Posting Key
Each line item contains exactly one posting key. This is used for internal control and is entered
in the complex posting screen to tell the system:
50
© Copyright. All rights reserved.
Lesson: Posting Transactions in the G/L
●
Which account type is being posted to
●
Whether the line item is a debit or credit posting
●
The field status of the additional data
In the Enjoy transaction and the Fiori tile, you no longer need to enter the posting key. Instead,
●
debit (d) represents posting key 40
●
credit (c) represents posting key 50
These posting keys appear in the document and their control functions are still relevant.
Figure 42: Standard Posting Keys
In the SAP system, there are a large number of standard posting keys. Each posting key is
used for posting either a debit or a credit to one account type.
For postings in the general ledger, you need only two posting keys:
●
Posting key 40 for debit items
●
Posting key 50 for credit items
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51
Unit 3: General Ledger (G/L) Accounting
Figure 43: Account Information
The balance display and the line item display are provided to display the account data. The
line item status open/cleared in transaction FAGLL03 (Display/Change Items) or the apps
Display G/L Account Line Items — Posting View / Display G/L Account Line Items — Reporting
View can be used only for G/L accounts.
The balance display is an overview of the saved transaction figures of an account. In the
balance display, you can display a list of the items that make up the balance by clicking on the
expand node.
In turn, you can display the corresponding document from the line item list.
Note:
If an original document for the FI document saved in the SAP system exists and it
was archived optically, you can display it as well.
LESSON SUMMARY
You should now be able to:
●
52
Post transactions in the G/L
© Copyright. All rights reserved.
Unit 3
Learning Assessment
1. What is SAP's representation of a company (independent accounting unit)?
2. More than one company code can be assigned to a controlling area.
Determine whether this statement is true or false.
X
True
X
False
3. To which chart of accounts must a company code be assigned in order for postings to
occur?
Choose the correct answer.
X
A Group
X
B Country
X
C Operating
X
D None of the above
X
E All of the above
4. What are the two parts of a Balance Sheet G/L account ?
5. What is assigned to a number range and controls how the Company Code segment of a
G/L account is displayed on the screen?
© Copyright. All rights reserved.
53
Unit 3: Learning Assessment
6. Reconciliation accounts can be posted to directly.
Determine whether this statement is true or false.
X
True
X
False
7. What determines the structure of a balance sheet and an income statement report, and
specifies which accounts correspond to which items in the report?
8. What two parts does a document consist of?
9. There are two posting keys for postings to G/L accounts: one for debit postings, and one
for credit postings. What are they?
10. A posting key allows posting to just one account type.
Determine whether this statement is true or false.
X
True
X
False
11. When a document is posted, a number is assigned to that document. This number comes
from a number range assigned to what in the header of that document?
12. In order for information to pass over to the controlling module when posting to an expense
account as part of an FI transaction, which master record settings must exist for the
expense account that is being posted to?
54
© Copyright. All rights reserved.
Unit 3: Learning Assessment
13. When a transaction is posted in FI, it automatically appears in the ASSETS/LIABILITIES or
PROFIT & LOSS area in the Balance Sheet/Income Statement.
Determine whether this statement is true or false.
X
True
X
False
© Copyright. All rights reserved.
55
Unit 3
Learning Assessment - Answers
1. What is SAP's representation of a company (independent accounting unit)?
Company code
2. More than one company code can be assigned to a controlling area.
Determine whether this statement is true or false.
X
True
X
False
Correct. In order for this to occur, the company codes and the controlling area must have
the same operating chart of accounts and fiscal year variant.
3. To which chart of accounts must a company code be assigned in order for postings to
occur?
Choose the correct answer.
X
A Group
X
B Country
X
C Operating
X
D None of the above
X
E All of the above
Correct. A company code must be assigned to an operating chart of accounts. In addition,
a company code can be assigned to a country chart of accounts. The country chart is
required for country-specific reporting. An operating chart of accounts can be assigned to
a group chart for consolidation purposes.
4. What are the two parts of a Balance Sheet G/L account ?
The two segments are the chart of accounts segment and the company code segment.
5. What is assigned to a number range and controls how the Company Code segment of a
G/L account is displayed on the screen?
Account group
56
© Copyright. All rights reserved.
Unit 3: Learning Assessment - Answers
6. Reconciliation accounts can be posted to directly.
Determine whether this statement is true or false.
X
True
X
False
Correct. You can post to a reconciliation account only through a subledger account.
7. What determines the structure of a balance sheet and an income statement report, and
specifies which accounts correspond to which items in the report?
Financial statement version
8. What two parts does a document consist of?
Header, line items
9. There are two posting keys for postings to G/L accounts: one for debit postings, and one
for credit postings. What are they?
debit postings: 40, credit postings: 50
10. A posting key allows posting to just one account type.
Determine whether this statement is true or false.
X
True
X
False
Correct. The posting key supplies the system with the information about which account
has been posted to: G/L account, customer, vendor, assets or materials.
11. When a document is posted, a number is assigned to that document. This number comes
from a number range assigned to what in the header of that document?
Document type
12. In order for information to pass over to the controlling module when posting to an expense
account as part of an FI transaction, which master record settings must exist for the
expense account that is being posted to?
G/L Account Type = Primary Costs or Revenue and settings for Cost Element Category
© Copyright. All rights reserved.
57
Unit 3: Learning Assessment - Answers
13. When a transaction is posted in FI, it automatically appears in the ASSETS/LIABILITIES or
PROFIT & LOSS area in the Balance Sheet/Income Statement.
Determine whether this statement is true or false.
X
True
X
False
Correct. The account must be assigned to an appropriate line item in the financial
statement version used when running the balance sheet/income statement. Otherwise,
the posting will appear in the financial statement in a category called “Accounts not
assigned”.
58
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UNIT 4
Accounts Payable
Lesson 1
Maintaining Vendor Master Records
61
Lesson 2
Maintaining Accounts Payable Transactions
65
Lesson 3
Managing the Integration between Accounts Payable and Materials Management
77
Lesson 4
Performing Accounts Payable Closing Operations
83
UNIT OBJECTIVES
●
Maintain vendor master records
●
Maintain accounts payable transactions
●
Manage the integration between accounts payable and materials management
●
Perform accounts payable closing operations
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Unit 4
Lesson 1
Maintaining Vendor Master Records
LESSON OVERVIEW
In this lesson, we review an existing vendor master record and create a new vendor master
record using the SAP Business Partner.
Business Example
A foreign employee is to arrive in Hamburg next month. Your company has to organize
accommodation for him. With the help of a local realtor, an apartment has been found and
your company has just signed the tenancy agreement. The accounting department needs to
create a vendor master record representing the landlord to create and track the rent
payments.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Maintain vendor master records
Vendor Accounts
In SAP S/4HANA, the business partner is the master record with which you manage your
vendors. The system offers a single point of entry to create, edit, and display master data for
business partners, customers, and vendors.
Figure 44: Business Partner — General Data
General Data
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Unit 4: Accounts Payable
Application-neutral data, such as name, address, bank details, and payment cards, is stored
in the general data of the business partner master record.
Business Partner Role
A business partner can have several roles, such as a contract partner (FI-CA), FI Vendor (FIAP), FI Customer (FI-AR), Customer (SD), Supplier (MM), prospect (potential customer), or
business partner (general). In general, a Business Partner (BP) role corresponds to a
business context in which a business partner can appear and provides the application specific
data.
In our training system, we use the standard business partner role FI Vendor for Accounts
Payables. This business partner role allows you to enter the company code specific (=
Accounts Payable specific) data for a business partner.
Business Partner Category
The Business partner category is the term used to classify a business partner as a natural
person (for example, a private individual), group (for example, community of heirs), or
organization (legal entity or part of a legal entity, such as a department of a company). The
business partner category determines which fields are - in principle - available for data entry.
For example, if you want to create a business partner as an organization, you are able to enter
the legal form in one of the fields.
Business Partner Grouping
Each business partner has to be assigned to a grouping when you create the business
partner. The grouping determines the number range (external/internal). You cannot change
the assignment afterwards. You can define the groupings, their descriptions, and the
associated number range in customizing.
Figure 45: Business Partner — Company Code Data
Any company that wishes to do business with a specific vendor has to create a company code
segment. The company code data contains information such as the reconciliation account,
terms of payment, payment methods, dunning data, or correspondence settings. You can
also maintain settings for posting blocks.
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Lesson: Maintaining Vendor Master Records
Initial Screen to Display a Business Partner in Role FI Vendor
Figure 46: Initial Screen to Display a Business Partner in Role FI Vendor
Business Partner - Customer/Vendor Integration
Accounts Payables uses the SAP Business Partner to manage the vendor master records.
Technically, this subledger uses its own vendor master records, which are integrated in all
accounting transactions, such as creating business transactions on accounts and processing
posting data. Therefore, we require business partners that are managed as vendors in
Financial Accounting and as business partners in other applications, to exist synchronously.
The Customer/Vendor Integration takes place in the background while the system processes
the business partner master data. When you create or change a business partner, the system
creates/changes all required fields in the vendor account according to the information in the
business partner. The customer/vendor master record is linked to the business partner
according to the settings made for synchronization control and Customer/Vendor Integration
in customizing.
LESSON SUMMARY
You should now be able to:
●
Maintain vendor master records
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Unit 4
Lesson 2
Maintaining Accounts Payable Transactions
LESSON OVERVIEW
In this lesson, we learn how to execute daily transactions with Accounts Payable (AP). We
take a look at the invoice transaction. We also learn how to set up the recurring entry
program. Finally, we look at multiple ways to process payments in SAP S/4HANA.
Business Example
A foreign employee is due to arrive in Hamburg next month. Your company has to organize
accommodation for him. With the help of a local realtor, an apartment has been found and
your company has just signed the tenancy agreement.
The commission for the realtor is 4,000 EUR. Your company uses the services of this realtor
quite frequently, which means a master record already exists. The invoice for the commission
is sent directly to the accounting department and has to be posted.
The rent for the apartment is 2,000 EUR per month. To automatically create an open item in
the landlord's account each month, the accounting department uses the recurring entries
program. The rent itself is paid automatically by running the payment program periodically.
The realtor urgently needs the money and asks you for a fast payment. Therefore, the
accountant creates a cheque and posts the payment.
To see if every transaction was posted correctly, the accountants check the accounts after
each transaction.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Maintain accounts payable transactions
Vendor Invoices and Credit Memos
You can easily create and post vendor invoices or credit memos using the Fiori app Create
Incoming Invoices. This type of vendor invoice entered directly in A/P is a miscellaneous
invoice, without reference to a purchase order. The A/P entry screen is divided into the
following areas:
Work templates
Here, you can select screen variants, account assignment templates, or held documents
as references.
Header and vendor data
Document header and vendor line item data is entered here.
G/L account items
The G/L line items for the document are entered here.
Information area
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Unit 4: Accounts Payable
The document balance and information about the vendor is displayed here.
Figure 47: Invoice/Credit Memo Entry
This function can also be used to create documents in a foreign currency. The foreign
currency amount is translated into local currency using defined exchange rates.
Figure 48: Vendor Invoice Screen
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Lesson: Maintaining Accounts Payable Transactions
When entering an expense item for an operating expense, you must also enter a costaccounting-relevant assignment, such as a cost center or internal order. This means that
when the item is posted, documents are created in Management Accounting and Financial
Accounting. The G/L Account Type Primary Costs or Revenue along with a Cost Element
Category has to be maintained in the G/L account master record in order for this to happen.
In the case described, the vendor invoice entered only affected one account assignment
object (a specific cost center).
Document Splitting
An invoice occasionally has multiple account assignment objects, such as two different cost
centers. For example, the real estate commission for finding apartments for two employees
from different departments. To resolve this issue, the demo company has decided that
balance sheets and P&L statements are to be created for every individual segment. The
affected segment does not have to be specified manually when the posting is made because it
is derived from the cost center automatically.
What does the posting look like in this case? Three line items are entered first:
●
●
●
The vendor line item with the total amount
Expense item 1 (first cost center and the corresponding segment is derived from the cost
center)
Expense item 2 (second cost center and also the associated segment)
The fourth item (tax item) is determined based on the tax code and the relevant settings when
the simulation or posting is carried out and then either displayed or posted.
Note:
This means that the document contains four line items in total. See the figure
Entry View (Document Splitting).
Figure 49: Entry View (Document Splitting)
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Currently, SAP supports derivation of the segment from the profit center. In turn, the profit
center can be derived, for example from the following:
●
Cost center
●
CO internal order
●
Project
Note:
Corporate groups are required to create balance sheets at the segment level.
However, no segment entries exist in the two line items, which means that the
balance sheet is not complete. The balance is not zero for the segments, which
means that the balance sheet is not balanced.
You can specify in Customizing that the system completes the missing entries automatically.
The amended (and now full) amount is shown in the figure General Ledger View (Document
Splitting).
You have to activate document splitting to ensure uniform splitting of the segment
characteristic (or any other entity). Systematic segmentation means that a “zero balance
position” is reached for each document with regard to the entity in question.
Figure 50: General Ledger View (Document Splitting)
The document now consists of six line items. The vendor line item and the tax item are split
across the two segments 1000_A and 1000_B. The balance for each segment is now zero.
The balance sheet and P&L statement can be created in full and the balance sheet is
balanced. As well as the split, the figure General Ledger View (Document Splitting), also
shows how the segment entity is inherited by the accounts payable and tax items in the
document.
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Lesson: Maintaining Accounts Payable Transactions
Document splitting reduces the time and effort for the user to enter documents. Entering the
six account assignment items, as shown in this example, would be time consuming.
There are now the two following “views” of the posted documents:
●
Entry view
●
General ledger view
Users can select the view they need and switch between views as required.
If document splitting is not required or has not been activated, the two views are identical (for
example, the customer only needs to create balance sheets at the company code level).
Customer invoices, for which the revenues are distributed among various entities, are also
handled this way.
Controlling (CO) Account Assignment Logic
To post to accounts in Financial Accounting that have a primary cost element in CO, you need
to assign a CO account assignment object.
Figure 51: CO Account Assignment Logic
The account assignment object itself can either be a real or a statistical object. For example,
an internal order is defined as real or statistical when it is created. A real order can only be
executed with real postings and a statistical order with statistical postings only.
Note:
The cost center is an exception to this rule. This is always a real object. It can be
posted to in both real and statistical postings.
Postings on real controlling objects can be allocated to other objects in CO. You can also
specify statistical controlling objects as account assignment objects in addition to real
controlling objects. You cannot allocate costs posted to statistical controlling objects to other
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Unit 4: Accounts Payable
objects. These account assignments are for information purposes only. You can make
statistical assignments during posting to any number of controlling objects.
Note the following rules for account assignments:
●
●
●
You need to specify a real controlling object in each posting item.
You cannot assign a CO-object such as a statistical internal order without also specifying a
real controlling object.
You cannot assign costs to more than one real controlling object in one posting item.
The only exception to this is that you can post to a cost center and one other real controlling
object. In this case, the posting is actual for the additional controlling object, and statistical for
the cost center.
Recurring Entry Program
You can use the recurring entry program for postings that are repeated at regular intervals,
such as rent payments and payments of fees and property taxes. With this program, the
necessary documents are generated automatically.
Recurring business transactions must be stored in the system as recurring entry original
documents for this to be possible. Each recurring entry original document contains the date
of the first and last postings, the frequency at which posting should be made, and the date of
the next planned posting.
The recurring entry program must be started at regular intervals within a specified period.
The program selects all recurring entry original documents in which the date of the next
posting falls within the specified period, and then generates a batch input session.
When the batch input session is run, an accounting document that corresponds to the original
document is posted and the date of the next posting is updated in the original recurring entry
document.
Figure 52: The Recurring Entry Program
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Lesson: Maintaining Accounts Payable Transactions
Outgoing Payment Process
All elements of the payment transactions are shown in the figure Elements of the Payment
Transaction.
A payment transaction can be carried out either manually or automatically using the payment
program.
Figure 53: Elements of the Payment Transaction
The standard system contains common payment methods and corresponding forms are
defined separately for each country.
Figure 54: Manage Automatic Payments
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Payment Program
The payment program was developed for the international payment transactions between
vendors and customers. This program can be used for incoming and outgoing payments.
However, it is more commonly used for outgoing payments.
The automatic payment process comprises the following steps:
1. Maintain the parameters.
2. Run a payment proposal.
3. Check the payment proposal.
4. Execute the payment run.
5. Create the payment media.
Step 1: Maintain the parameters
Figure 55: Parameters
You use the parameters to define which accounts and items the payment program includes in
the automatic payment run.
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Lesson: Maintaining Accounts Payable Transactions
Automatic Payment Proposal
Figure 56: Automatic Payment Proposal
During the proposal run, the system does the following:
●
Checks the accounts and documents specified in the parameters for due items.
●
Groups items due for payment.
●
Selects the relevant payment methods, house banks, and partner banks.
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Unit 4: Accounts Payable
Step 3: Check the payment proposal
Figure 57: Edit Proposal
This step can be omitted, but you are advised to check that the data is accurate before
actually running the payment program.
Step 4: Execute the Payment Run
Figure 58: Payment Run
During the payment run, the system does the following:
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Lesson: Maintaining Accounts Payable Transactions
●
Posts payment documents.
●
Clears open items.
●
Prepares data for creating the payment media.
Step 5: Create Payment Media
Figure 59: Create Payment Media
Payment media are generated in this step. One of the following occurs:
●
Payment media, such as cheques, are printed.
●
IDocs are generated for the Electronic Data Interface (EDI).
●
A data file is created as part of the data medium exchange.
To create the payment media, SAP S/4HANA uses the Payment Medium Workbench (PMW).
It is a generic payment medium program for all payment medium formats.
You can skip the payment proposal and execute the payment run directly. In this case,
business transactions that balance the open items are posted directly after entering the
parameters.
LESSON SUMMARY
You should now be able to:
●
Maintain accounts payable transactions
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Unit 4: Accounts Payable
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Unit 4
Lesson 3
Managing the Integration between Accounts
Payable and Materials Management
LESSON OVERVIEW
In this lesson, we learn to create a simple purchase order. Following that, we deal with the
goods receipt and the invoice verification in the Materials Management. In addition, we
explain the integration with Financial Accounting for goods receipt and invoice verification in
the purchasing process.
Business Example
The plant 1010 needs tyres and tubes. The responsible purchase organization submits a
corresponding purchase order to a known supplier.
A few days later, first the goods, and then the invoice, arrive.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Manage the integration between accounts payable and materials management
Organizational Units in Materials Management
The central organizational object in logistics is the plant. A plant is an operating area or
branch within a company. A plant can be a central delivery warehouse, a regional sales office,
a manufacturing facility, the corporate headquarters, or a maintenance plant.
A plant must be assigned to a single company code. However, one or more plants can be
assigned to the same company code.
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Unit 4: Accounts Payable
Figure 60: Demo Company Plants in Germany
All company-code-relevant transactions from these plants are posted in company code 1010
because these plants are assigned to company code 1010.
Vendor Master Record Purchasing Data
For the procurement process to be used in Materials Management for a vendor, the Business
Partner master record of that vendor must have a corresponding Business Partner Role used
for Materials Management (for example, BP-Role FLVN01 – Supplier). The purchasing data is
specific to a single purchasing organization, just like the company code data of the master
record is specific to a single company code. In the same way that several company code
segments of the vendor master record can exist, there can be several purchase data
segments of the vendor master record. Every purchase data segment presents data, which is
specific for exactly one purchase organization.
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Lesson: Managing the Integration between Accounts Payable and Materials Management
Figure 61: Purchasing Data in the Business Partner Master Record
You can access the purchasing data of the Business Partner Master Record using the Fiori
apps Supplier Master or Maintain Business Partner. Alternatively, you can use transaction BP
in the SAP Easy Access Menu.
Figure 62: Procurement Cycle
The procurement cycle is as follows:
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Unit 4: Accounts Payable
●
●
●
●
●
●
●
●
Demand determination: The department responsible can register a requirement for
materials manually through a purchase order to Purchasing.
Source of supply determination: The purchaser responsible is supported by the system in
determining possible sources of supply. One possibility for determining the source of
supply is creating queries and subsequently entering the quotations. Furthermore, you can
access purchase orders and conditions that already exist in the system.
Supplier selection: Comparing the prices in the different quotations makes selecting
suppliers easier. Letters of rejection can be sent automatically.
Purchase order handling: When creating purchase orders, the system provides you with
the entry process.
Purchase order monitoring: The purchaser can monitor the processing status of the
purchase order in the system. For example, the purchaser can determine whether the
goods or the invoice have been received for the corresponding purchase order item.
Dunning processes are also supported.
Goods receipt: The system checks the amount of goods received against the purchase
order quantity.
Invoice verification: The vendor invoices are checked to see if the accounting and the
content are correct.
Payment processing: The vendor payment is usually done in Financial Accounting.
Logistics Process Chain
The three-step verification, commonly referred to as the “three-way match”, is the standard
procedure for posting procurement transactions in Materials Management (MM). The
procedure is as follows:
1. Purchase order: Create a purchase order in Materials Management. This does not cause
any postings in financial accounting (FI). See the figure, Three-Step Verification
(Standard), for more information.
2. Goods receipt: To update the receipt of inventory or consumable material, generate a
material document in MM. At the same time, create a document in FI that posts the value
of the goods to the merchandise account as a debit and the goods receipt/invoice receipt
(GR/IR) to the clearing account as a credit in the general ledger.
3. Invoice verification: Post a vendor invoice in MM using invoice verification. This
automatically generates a document in FI. The accounting document contains the invoice
amount that gets posted to the GR/IR account (debit) and the vendor account (credit).
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Lesson: Managing the Integration between Accounts Payable and Materials Management
Figure 63: Three-Step Verification (Standard)
The last two steps can be completed in reverse order depending on the order that the goods
and the invoice are received.
The goods receipt/invoice receipt clearing account ensures that goods were received for
each invoice and vice versa.
Figure 64: SAP Fiori App Manage Purchase Order
The Purchase Order screen has several subdivisions:
●
Type of document and vendor
●
Header data
●
Position details
●
Item details
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Unit 4: Accounts Payable
LESSON SUMMARY
You should now be able to:
●
82
Manage the integration between accounts payable and materials management
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Unit 4
Lesson 4
Performing Accounts Payable Closing
Operations
LESSON OVERVIEW
In this lesson, we study how to run balance confirmations for our vendors. We also learn about
the foreign currency valuation program for open vendor items.
In some countries, accounts payable must be grouped on the balance sheet based on their
remaining term. In the SAP system, a function for regrouping receivables and payables
handles this task.
Business Example
At the end of the month and/or year, several activities must be performed in Accounts
Payable (AP), including sending confirmation of balances to vendors, accounting for open
items in a foreign currency, and regrouping accounts payable according to their remaining
term (in certain countries only).
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Perform accounts payable closing operations
Accounts Payable Closing
Year-end closing can be divided into two main sections:
●
●
Legal requirements (procedures required by government authorities)
Technical and organizational requirements (procedures that are technically required or
needed to support the accounting organization)
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Unit 4: Accounts Payable
Figure 65: Accounts Payable Closing Operations
At the beginning of the fiscal year, the balance carry forward program is executed in FI-GL for
the general ledger and subledger accounts to carry forward the balances of the accounts to
the next fiscal year.
Note:
When the system performs balance carry forward for the G/L accounts of the
leading ledger, it automatically performs balance carryforward for the vendor
accounts as well. However, you can also perform balance carry forward separately
for vendor accounts optionally.
The posting periods of the old fiscal year are blocked and the special periods for closing
postings for fiscal year-end adjustments are opened.
Afterward, the balances with selected vendors are confirmed, the foreign currency
documents are valuated, and the accounts payable are regrouped according to the remaining
term (required only in certain countries).
Once complete, the special periods can be closed.
Balance Confirmations
The program for creating balance confirmations also creates reply requests for a freely
definable number of vendors, a reconciliation list, and a results table. The balance
confirmations and reply requests are sent to the vendors and the lists are used as a control
measure.
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Lesson: Performing Accounts Payable Closing Operations
Figure 66: Balance Confirmations
The vendors check the balance information they receive and send their replies to the control
center audit department, which compares the replies with the reconciliation list, and enters
the results in the results table.
Foreign Currency Valuation
A foreign currency valuation is necessary if vendor accounts contain open items in a foreign
currency. The amounts of these open items are translated to the local currency at the time
they are entered using the exchange rate that is valid on the posting date.
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Unit 4: Accounts Payable
Figure 67: Foreign Currency Valuation
The exchange rate is probably different at the time of closing so the open items need to be
valuated again. A program valuates the open items using the new exchange rate and enters
the valuation difference in the valuated line items.
It creates the valuation postings in one of the following ways:
●
●
In case of loss: Debit the account expense from foreign currency valuation and credit the
balance sheet adjustment account.
In case of gain: Debit the balance sheet adjustment account and credit the account for
revenue from foreign currency valuation.
Note:
A valuation document cannot post directly to the payable account because
reconciliation accounts cannot be directly posted to. For this reason, postings
appear in an adjustment account, which is displayed in the balance sheet item of
the associated reconciliation account.
Valuation Method and Valuation Area
A valuation method determines how the individual line items are valuated. This has to be set
up in conjunction with the country-specific valuation regulations. It defines, for example,
whether the lowest value principle or a general principle has to be used for valuation. The
valuation method is assigned to a valuation area in customizing.
Valuation areas are used in Financial Accounting for closing operations. You can use them to
depict different valuation approaches/accounting principles.
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Lesson: Performing Accounts Payable Closing Operations
Accounts Payable Regrouping
Accounts payable and receivable have to be listed separately in the balance sheet. As it is
possible for some vendors to have a debit balance, these accounts need to be changed to
vendors with a debit balance prior to creating the financial statements.
In many countries, it is also necessary to group accounts payable in the balance sheet based
on their remaining term.
Both regroupings are carried out using a special program. At the same time, these
regroupings are removed on the first day of the next period, since regroupings are not
necessary for daily processing.
The program can also make the corrections that are required due to changed reconciliation
accounts in the master records.
Figure 68: Regrouping Accounts Payable
The figure Regrouping Accounts Payable, displays how payables with long remaining terms
were posted to adjustment accounts separately so that the balance sheet could be prepared.
Additionally, vendors with a debit balance are regrouped. An adjustment account is used as
the offsetting account here also since adjustments cannot be posted directly to a
reconciliation account.
LESSON SUMMARY
You should now be able to:
●
Perform accounts payable closing operations
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Unit 4: Accounts Payable
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Unit 4
Learning Assessment
1. Each business partner has to be assigned to a grouping when you create the business
partner.
Determine whether this statement is true or false.
X
True
X
False
2. Vendor Accounts are made up of two segments. What are they?
3. In which segment of the vendor master record can you find the reconciliation account?
4. When you carry out vendor postings in SAP S/4HANA (using the corresponding Fiori app
or SAP GUI transaction FB60), information about the vendor is displayed when you enter
the vendor number and choose Enter. What could we use this information for?
5. Which G/L Account type is used to post from FI to cost objects in CO?
6. For postings to recur on a regular basis, which program can be used to generate the
necessary documents?
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Unit 4: Learning Assessment
7. Which of the following accurately describes what is defined by the parameters for the
payment program?
Choose the correct answer.
X
A Company codes only
X
B Vendors and documents only
X
C Company codes, vendors, and documents
8. When the proposal stage of the payment program has finished, you cannot make any
changes to what SAP S/4HANA proposes to pay.
Determine whether this statement is true or false.
X
True
X
False
9. What are the three parts that complete a Business Partner master record used as vendor
(FI) and supplier (MM)?
10. Which are the two key organizational elements in Materials Management? Hint: One is an
operating area or branch within a company, the other negotiates conditions of purchase
with vendors.
11. When a purchase order is created, a financial accounting document is also created.
Determine whether this statement is true or false.
X
True
X
False
12. In SAP S/4HANA, adjustments can be posted in special periods (such as periods 13-16)
for year-end closing adjustments.
Determine whether this statement is true or false.
90
X
True
X
False
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Unit 4: Learning Assessment
13. If the exchange rate has moved in your favor since a vendor invoice was posted, the
following debit and credit transaction is created by the foreign currency revaluation
program:
14. The regrouping payables program can be used for three purposes. What are they?
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Unit 4
Learning Assessment - Answers
1. Each business partner has to be assigned to a grouping when you create the business
partner.
Determine whether this statement is true or false.
X
True
X
False
Correct. Each business partner has to be assigned to a grouping when you create the
business partner.
2. Vendor Accounts are made up of two segments. What are they?
General data, which exists at the client level, and company code data, which is specific to a
particular company code.
3. In which segment of the vendor master record can you find the reconciliation account?
In the company code segment.
4. When you carry out vendor postings in SAP S/4HANA (using the corresponding Fiori app
or SAP GUI transaction FB60), information about the vendor is displayed when you enter
the vendor number and choose Enter. What could we use this information for?
It can be used to view or make changes to the vendor master record while making a
posting. You do not have to open up a new session or exit the Vendor Posting screen. You
can also link to open items in the vendor's account.
5. Which G/L Account type is used to post from FI to cost objects in CO?
Primary Costs or Revenue
6. For postings to recur on a regular basis, which program can be used to generate the
necessary documents?
Recurring entry program
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Unit 4: Learning Assessment - Answers
7. Which of the following accurately describes what is defined by the parameters for the
payment program?
Choose the correct answer.
X
A Company codes only
X
B Vendors and documents only
X
C Company codes, vendors, and documents
Correct. Company codes, vendors, and documents accurately describe what is defined by
the parameters for the payment program.
8. When the proposal stage of the payment program has finished, you cannot make any
changes to what SAP S/4HANA proposes to pay.
Determine whether this statement is true or false.
X
True
X
False
Correct. Editing the payment proposal allows the user to make changes to what the
system proposes to pay.
9. What are the three parts that complete a Business Partner master record used as vendor
(FI) and supplier (MM)?
General data, data on the company code, and data on the purchasing organization
10. Which are the two key organizational elements in Materials Management? Hint: One is an
operating area or branch within a company, the other negotiates conditions of purchase
with vendors.
Plant and purchasing organization
11. When a purchase order is created, a financial accounting document is also created.
Determine whether this statement is true or false.
X
True
X
False
Correct. A financial accounting document is created when goods are received and when
the invoice is received, but not when the purchase order is created.
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Unit 4: Learning Assessment - Answers
12. In SAP S/4HANA, adjustments can be posted in special periods (such as periods 13-16)
for year-end closing adjustments.
Determine whether this statement is true or false.
X
True
X
False
Correct. In SAP S/4HANA, adjustments can be posted in special periods (such as periods
13-16) for year-end closing adjustments.
13. If the exchange rate has moved in your favor since a vendor invoice was posted, the
following debit and credit transaction is created by the foreign currency revaluation
program:
debit: balance sheet adjustment account; credit: revenue from foreign currency valuation.
14. The regrouping payables program can be used for three purposes. What are they?
1) Regrouping payables according to their remaining term; 2) Regrouping vendors with a
debit balance; 3) Regrouping vendors whose reconciliation account has changed.
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UNIT 5
Accounts Receivable
Lesson 1
Maintaining Customer Master Records
97
Lesson 2
Managing Accounts Receivable Transactions
101
Lesson 3
Managing Customer Correspondence
105
Lesson 4
Creating Accounts Receivable Dispute Cases
113
Lesson 5
Managing the Integration between Accounts Receivable and Sales Order Management
119
Lesson 6
Performing Accounts Receivable Closing Operations
127
UNIT OBJECTIVES
●
Maintain customer master records
●
Manage accounts receivable transactions
●
Manage customer correspondence
●
Create accounts receivable dispute cases
●
Manage the integration between accounts receivable and sales order management
●
Perform accounts receivable closing operations
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Unit 5
Lesson 1
Maintaining Customer Master Records
LESSON OVERVIEW
In this lesson, you learn how to maintain customer master records.
Business Example
A customer calls to inform the accounting department of a change of address. You need to
enter the new address in the business partner master record.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Maintain customer master records
Business Partner – Customer Accounts
Figure 69: Business Partner — General Data
General Data
Application-neutral data, such as name, address, bank details, and payment cards, is stored
in the general data of the business partner master record.
Business Partner Role
A business partner can have several roles, such as a contract partner (FI-CA), FI Vendor (FIAP), FI Customer (FI-AR), Customer (SD), Supplier (MM), prospect (potential customer), or
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Business Partner (general). In general, a Business Partner (BP) role corresponds to a
business context in which a business partner can appear and provides the application-specific
data.
In our training system, we use the standard business partner role FI Customer for Accounts
Receivable. This business partner role allows you to enter the company code specific (which
is the Accounts Receivable specific) data for a business partner.
Business Partner Category
The Business partner category is the term used to classify a business partner as a natural
person (for example, a private individual), group (for example, community of heirs), or
organization (legal entity or part of a legal entity, such as a department of a company). The
business partner category determines which fields are available for data entry.
For example, if you want to create a business partner as an organization, you are able to enter
the legal form in one of the fields. For a person, you enter the first name, last name, gender,
and so on. When a business partner is created, the business partner category must be
selected (required entry). Assignment of the business partner category is static and cannot
be changed once the business partner has been created.
Business Partner Grouping
Each business partner has to be assigned to a grouping when you create the business
partner. The grouping determines the number range (external/internal). You cannot change
the assignment afterwards. You can define the groupings, their descriptions, and the
associated number range in customizing.
Figure 70: Business Partner — Company Code Data
Any company that wishes to do business with a specific customer has to create a company
code segment. The company code data contains information like the reconciliation account,
terms of payment, payment methods, dunning data, or corresponding settings. You can also
maintain settings for posting blocks.
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Lesson: Maintaining Customer Master Records
Figure 71: Company Code View of the Customer Master Record
Business Partner – Customer/Vendor Integration
Example: Accounts Receivable uses the SAP Business Partner to manage the customer
master records. Technically, this subledger uses its own customer master records, which are
integrated in all accounting transactions, such as creating business transactions on accounts
and processing posting data. Therefore, we require business partners that are managed as
customers in Financial Accounting and as business partners in other applications, to exist
synchronously.
The Customer/Vendor Integration takes place in the background while the system processes
the business partner master data. When you create or change a business partner, the system
creates/changes all required fields in the customer account according to the information in
the business partner. The customer/vendor master record is linked to the business partner
according to the settings made for synchronization control and Customer/Vendor integration
in customizing. For further information, please refer to our SAP training S4F12 — Basics of
Customizing for Financial Accounting: G/L, AP, AR in SAP S/4HANA.
LESSON SUMMARY
You should now be able to:
●
Maintain customer master records
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100
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Unit 5
Lesson 2
Managing Accounts Receivable Transactions
LESSON OVERVIEW
In this lesson, you learn how to enter and display invoices and payments in accounts
receivable accounting. Although most transactions with customers are entered in sales and
distribution, this lesson shows you how to enter miscellaneous invoices that do not pertain to
a sales order. You also learn how to process incoming payments, including an underpayment
(a short pay).
Business Example
A customer states on the phone that on the last invoice he received from your company, the
payment terms did not contain the usual 3% cash discount. The Sales and Distribution
department confirms the error. You need to update the customer invoice to apply the correct
discount.
The accounting department receives a payment advice, which states that a customer is going
to pay only 80% of the invoice amount because the delivery was incomplete. When the
payment arrives, the accountant posts the difference as a residual item.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Manage accounts receivable transactions
Customer Invoices and Credit Memos
Nearly all invoices and credit memos from customers reach the accounts receivable
component through its integration with the sales order management component. In
exceptional cases, if there is no reference to a sales order, invoices and credit memos can be
entered in the accounts receivable subledger. The document entry screen is divided into the
following areas:
Work templates
Here, you can select screen variants, account assignment templates, or held documents
as references.
Header and customer data
Document header and customer line item data is entered here.
G/L account items
The G/L line items for the document are entered here.
Information area
The document balance and information about the customer are displayed here. It also
contains a link to the master data and open items.
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Unit 5: Accounts Receivable
Figure 72: Invoice/Credit Memo Entry
This transaction can also be used to create documents in a foreign currency. The foreign
currency amount is translated into local currency using defined exchange rates.
Figure 73: Fiori App – Create Outgoing Invoices
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Lesson: Managing Accounts Receivable Transactions
Incoming Payments
Figure 74: Incoming Payments
Incoming payments can be dealt with in several ways in different companies and countries.
Incoming payments are posted as shown in the figure Incoming Payments.
●
●
●
The items are cleared if the customer pays open items in the full amount or with an agreed
cash discount.
If a minor payment difference exists, this can be charged off automatically. The maximum
amount that constitutes a minor payment difference is defined in the tolerance group
settings.
Any payment difference outside the tolerance group settings must be dealt with manually.
Two methods of posting payment differences are:
1. Partial payment: The item being short-paid does not clear. A new open item in the amount
of the payment is created on the credit side. This credit entry shows up right above the
open item being paid and it references the open item being short-paid.
2. Residual item: The open invoice is cleared and a new open item (residual item) in the
amount of the payment difference is created.
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Unit 5: Accounts Receivable
Figure 75: Post Incoming Payments
LESSON SUMMARY
You should now be able to:
●
104
Manage accounts receivable transactions
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Unit 5
Lesson 3
Managing Customer Correspondence
LESSON OVERVIEW
In this lesson, you learn how to create correspondence for customers, including dunning
notices and account statements. You also learn how to carry out quick analyses of customer
accounting data.
Business Example
Some important customers wish to receive monthly account statements. Once a month, a
special report needs to be started to select these customers and print the account
statements. This report is usually started automatically by a job. For demonstration purposes,
the accountant allows you to run the report online.
Other customers have not paid their invoices on time, and must therefore be sent a dunning
notice.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Manage customer correspondence
Dunning Functions
The SAP system provides you with a tool that automatically analyzes all the open items and
duns any items that are overdue. The system determines a dunning level, which corresponds
to the number of days in arrears. The dunning level determines the dunning charges and
interest levied, as well as which dunning text is selected. The dunning history keeps a record
of which dunning notices have been issued.
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Unit 5: Accounts Receivable
Figure 76: Dunning Functions
You can trigger automatic dunning for a single account (individual dunning notice), or you can
have the dunning program carry out automatic dunning for a selected number of accounts.
Dunning Procedure
Figure 77: Dunning Procedure
Dunning is controlled by the dunning procedure. A dunning procedure must be entered in
every customer and/or vendor account that is to be included in automatic dunning.
A dunning procedure that is valid for one-time customers is entered in one-time accounts.
You can define as many different dunning procedures as you need. SAP S/4HANA comes
with several standard dunning procedures that can be used as a template for additional
procedures.
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Lesson: Managing Customer Correspondence
Dunning Parameters
Figure 78: Dunning Parameters
You can specify how the dunning run is to be executed by entering parameters in the dunning
program. You can use the parameters of an existing dunning run as a template and adjust the
dates to meet your requirements. Typical parameters are the company codes and accounts
that are to be included in the dunning run.
Dunning Runs
During the dunning run, accounts are selected and checked for overdue items. The system
then checks whether dunning notices have to be sent, and assigns the relevant dunning levels.
All dunning data is stored in a dunning proposal.
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Unit 5: Accounts Receivable
Figure 79: Dunning Run
Changing the Dunning Proposal
You can edit, delete, and recreate the dunning proposal as often as required to achieve the
desired result.
Figure 80: Changing the Dunning Proposal
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Lesson: Managing Customer Correspondence
Printing Dunning Notices
The dunning proposal is not a mandatory step; therefore, it can be omitted. If Dunn.print with
scheduling is selected, the system does not produce a proposal. Instead it prints the dunning
notices as soon as the program has been executed.
Figure 81: Printing Dunning Notices
In one step, the system prints the dunning notices and updates the dunning data in the
master records and documents, including the dunning dates and levels.
Correspondence Types
Correspondence relating to daily business first has to be requested before it can be printed. A
correspondence request can be carried out in the following ways:
●
●
●
Automatically if special transactions, such as bill of exchange charges (bill of exchange
charges statement) or payment differences (payment notice) are posted.
Manually by the accounting clerk.
Using a request program that creates a high volume of correspondence requests
simultaneously (periodic account statements, internal documents, standard letters).
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Unit 5: Accounts Receivable
Figure 82: Correspondence Requests
Requested correspondence is stored in a correspondence request table and can be printed
through a trigger program.
Analytical Fiori Apps for Accounts Receivable
Analytical apps let you get a role-based insight into real-time operations of your business by
collecting and displaying key figures directly in your browser. Analytical apps combine the
data and analytical power of SAP HANA with the integration and interface components of SAP
S/4HANA. They provide real-time information on large volume data in a simplified front end
to carry out analysis of important accounting data such as:
110
●
Overdue Receivables
●
Dunning Level Distribution
●
Days Beyond Terms
●
Open Disputes
●
Total Receivables
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Lesson: Managing Customer Correspondence
Figure 83: Analytical Apps Accounts Receivable
LESSON SUMMARY
You should now be able to:
●
Manage customer correspondence
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Unit 5: Accounts Receivable
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Unit 5
Lesson 4
Creating Accounts Receivable Dispute Cases
LESSON OVERVIEW
In this lesson, you learn about the dispute management functions of SAP S/4HANA, which
you can use to optimize dispute case processing with your customers.
Business Example
A customer informs you that an invoice was only partially paid because the delivery was
incomplete. As an accounts receivable accountant, you create a dispute case for this in the
dispute management component in SAP S/4HANA, so that you can initiate further steps.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Create accounts receivable dispute cases
SAP Dispute Management
Figure 84: Problem Issues in Dispute Case Processes
The dispute management component in SAP S/4HANA contains functions for settling dispute
cases relating to receivables. It complements the logistical process chain (Purchase Order →
Delivery → Invoice → Payment) in the stage between Invoice and Payment, if the customer
disputes anything at this stage.
A number of issues arise in the dispute case process that can be improved as part of financial
supply chain management. These issues form the starting point for developing the dispute
management component in SAP S/4HANA.
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Unit 5: Accounts Receivable
●
●
●
●
If customers make reduced payments or do not pay at all, the days sales outstanding
(DSO) increases. “Days sales outstanding” is a key number that indicates the average
number of days that the customer takes to pay, based on annual sales. This is the case
particularly in times of worsening customer payment histories.
In the case of deductions, the net value date is no longer valid for the cash flow forecast.
This leads to difficulties in predicting cash flow.
Dispute resolution today is a costly and highly manual process. The increasing number of
disputes therefore has a double impact on costs.
In addition, disputes can indicate customer relationship issues or problems within the
company and can thus provide an important starting point for a company's quality
management activities.
How do receivables-related disputes arise?
●
Customer provides information actively.
●
Customer makes contact with the complaints department.
●
Customer makes contact with the account manager.
●
Customer makes contact with the accounting department.
●
Customer makes a reduced payment.
●
●
●
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Payment difference discovered when incoming payment is processed (cash management
or accounts receivable accounting).
Customer delays payment.
Receivables become overdue because payment is not made and is discovered during
account maintenance (accounts receivable accounting).
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Lesson: Creating Accounts Receivable Dispute Cases
Figure 85: Process Integration: Accounts Receivable Accounting – Dispute Management
Process integration into financial processes has the following aspects:
●
●
●
Integration of dispute management functions (creation, display, and editing of dispute
cases) in financial processes or transactions
Automatic update of dispute cases by certain financial transactions
Automatic update of items in dispute cases by certain actions in the dispute management
component
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Unit 5: Accounts Receivable
Figure 86: Creating a Dispute Case on Receipt of Payment
Manage Dispute Cases
Figure 87: Fiori App Manage Dispute Cases
With the transactional app Manage Dispute Cases, you analyze and process receivablesrelated dispute cases. For example, dispute cases are created when business partners reduce
the payment amount. These reductions have usually not been agreed upon with the payment
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Lesson: Creating Accounts Receivable Dispute Cases
recipient, and therefore, the payment recipient has to investigate and resolve these dispute
cases. The Manage Dispute Cases app helps you to structure your investigations and to
distribute and manage the results for all involved parties in your company.
This app allows you to do the following:
●
Search and filter dispute cases based on various criteria
●
View the details of a dispute case, such as text notes and linked invoices
●
Edit dispute case attributes, such as the processor
●
Add text notes to a dispute case
●
Add file attachments to a dispute case
LESSON SUMMARY
You should now be able to:
●
Create accounts receivable dispute cases
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Unit 5: Accounts Receivable
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Unit 5
Lesson 5
Managing the Integration between Accounts
Receivable and Sales Order Management
LESSON OVERVIEW
In this lesson, you learn how to process documents posted from sales order management to
accounts receivable. You carry out the sales order process and learn about the accounting
documents that are automatically created in the sales order process.
Business Example
Sales organization 1010 receives a sales order from customer T-C##.
At the required delivery date, an outbound delivery is created, the product is picked from the
warehouse, a good issue is posted, and the customer is billed.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Manage the integration between accounts receivable and sales order management
Sales Organizations and Distribution Channels
Sales organizations are responsible for sales in SAP S/4HANA. A company code can be linked
to several sales organizations. The company code 1010 (Germany) uses the sales
organization 1010. Further sales organizations that are linked with company code 1010 are
possible. Any accounting-relevant transactions in either of these sales organizations are
posted in company code 1010.
Each sales organization can use different distribution channels to sell goods. In principle, a
distribution channel can also be used by two different sales organizations.
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Unit 5: Accounts Receivable
Figure 88: Sales Organizations and Distribution Channels
The combination of a sales organization and a distribution channel is also known as a
distribution chain.
Distribution chains sell goods from the plants. Both of the distribution chains, 1010-10 and
1010-12, sell goods from the plant 1010 and post the sales in company code, 1010, which is
also assigned to the plant.
Figure 89: Distribution Chains for Plant 1010
Divisions typically represent key product lines of an organization.
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Lesson: Managing the Integration between Accounts Receivable and Sales Order Management
Figure 90: Divisions
The divisions are assigned to the distribution chain from which they can be sold. The
combination of the distribution chain and division is a sales area.
Figure 91: Sales Areas
Customer-specific arrangements, regarding partial deliveries or terms of payment, for
example, can be made for each sales area. Statistics can be created and separate marketing
activities carried out within a sales area.
Sales Area Data in the Customer Master Record
A sales area is the combination of sales organization, distribution channel, and division. A
sales area must define sales-area-specific settings for a customer before it can start doing
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business with that customer. These settings could be special conditions and terms of
payments that the customer has arranged with the specific sales area.
Figure 92: Business Partner — Sales Area Data
Figure 93: Sales Process Overview
An effective processing of sales orders involves all sales activities in a chain of narrowly
integrated processes. The SAP system allows you to do this kind of sales order processing.
The individual steps within a sales process are therefore mapped by interlinked, electronic
documents.
The SAP sales process begins with the setting up and the maintenance of customer
relationships and ends with the invoicing of the delivered goods or the services rendered to
the customer. The posting of incoming payments from the customer is already part of SAP S/
4HANA.
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Lesson: Managing the Integration between Accounts Receivable and Sales Order Management
Sales order processing begins with presales activities, as shown in the following example:
1. Customer query: You create and send a quotation.
2. Order processing: You create a sales document.
3. Procurement: The system determines the supplier of goods using data stored by you.
4. Shipping processing: You organize and execute the delivery of the goods.
5. Invoicing: You create the invoice and transfer all required data to accounting.
6. Payment processing: You check open items and post incoming payments.
Sales Process
Sales order: The sales order forms the basis of the sales process. Once a customer has placed
an order, a sales order must be created at the start of the process. The sales order is
generated at the distribution chain level. The ordered items can be from different divisions.
The sales order is a document in sales order management and does not cause any postings in
financial accounting. When the sales order has been entered, the system carries out an
availability check for the required delivery date.
Figure 94: Sales Process
Outbound delivery: On the day of shipping, an outbound delivery document is created. Billing
for the delivery can take place only when the goods have been taken from the warehouse
stock and posted as a goods issue. This is a separate step in the delivery process.
Picking: The warehouse management function is used for picking. A transfer order has to be
created, which generates the pick order. The requested goods are taken from the warehouse
and prepared for delivery.
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Goods issue: The goods to be delivered are posted as a goods issue. A goods issue document
is created in materials management, and an accounting document is created in accounting so
that the goods issue is posted to the correct G/L accounts.
Note:
The accounting document debits the cost of goods sold and credits the inventory.
Billing: A billing document is created in sales order management, and a printed invoice is sent
to the customer. At the same time, a document is created in accounting so that the receivable
and revenue can be posted to the correct accounts.
Document flow: This is a tool that allows you to view the related documents in the process.
Figure 95: Predictive Accounting
Predictive accounting: One development focus is the forecast of future revenues, cost, and
maybe the set up of a forecast P&L statement, which is called predictive accounting.
Predictive accounting includes insights from expected revenue and expected expenditures. In
reporting, it is always clear whether you are looking at actual (realized) values or values
including predictions.
Predictive accounting is built up using specific ledgers.
Figure 96: Fiori App Create Sales Order
The Sales Order Entry screen consists of several sections:
●
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Header data
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Lesson: Managing the Integration between Accounts Receivable and Sales Order Management
●
Header data, combined with position data
●
Item details
LESSON SUMMARY
You should now be able to:
●
Manage the integration between accounts receivable and sales order management
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Unit 5: Accounts Receivable
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Unit 5
Lesson 6
Performing Accounts Receivable Closing
Operations
LESSON OVERVIEW
In this lesson, you learn how to adjust for bad debt expense using a value adjustment
program.
Business Example
At the end of the month, most companies have to check the recoverability of receivables and
make respective offsetting entries. The value adjustment program can help you fine-tune your
estimate by using a value adjustment key. Since this estimate is generally made for reporting
purposes, the bad debt expense transaction is usually reversed at the beginning of the next
month. At year end, a permanent bad debt expense estimate is made.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Perform accounts receivable closing operations
Closing Operations for Accounts Receivable
At the beginning of the fiscal year, the balance carryforward program is executed centrally in
FI-GL (see the unit on Closing Operations in General Ledger Accounting) for the general
ledger and subledger accounts. This carries forward the balances of the accounts to the next
fiscal year.
Note:
When the system performs balance carryforward for the G/L accounts of the
leading ledger, it automatically performs balance carryforward for the customer
accounts also. However, you can also perform balance carryforward separately
for customer accounts optionally.
The posting periods of the old fiscal year are then blocked and the special periods for closing
entries are opened. After this, the following closing operations are carried out:
●
Balance confirmations are sent and evaluated.
●
Foreign currency documents are valuated.
●
Value adjustments are performed for overdue receivables.
●
Accounts receivable are reclassified into short- and long-term categories for the financial
statement.
The special periods can then be closed.
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Unit 5: Accounts Receivable
Value Adjustments
Figure 97: Accounts Receivable Closing Operations
Note:
Balance confirmations, foreign currency valuations, and regroupings are
performed in the same way as in accounts payable. Therefore, we focus on how
value adjustments are performed.
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Lesson: Performing Accounts Receivable Closing Operations
Figure 98: Adjustment of Receivables
The following options are available for creating value adjustments for receivables:
1. You enter Individual Value Adjustments (IVA) as a special G/L transaction E.
2. You use the program SAPF107 (“Additional valuations”) to carry out a flat-rate individual
value adjustment. This program is executed by using the Fiori App Further Valuation or the
transaction code F107.
3. Once you have determined the amount of the value adjustment, you adjust the flat-rate
value by making a manual G/L account posting. The posting record is: Expense from flatrate value adjustment to value adjustment.
Figure 99: Individual Value Adjustment for Doubtful Receivables
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Doubtful receivables are written off as an Individual Value Adjustment (IVA) during year-end
closing. The special general ledger method is suitable for this procedure because the
transaction is entered in the customer account and is also “posted” to a special G/L account,
Individual Value Adjustments for Receivables.
After you have ascertained that the debt is irrecoverable or that the receivable has been paid,
the individual value adjustment is reversed. If the debt is irrecoverable, the receivable is
cleared from the customer account and the amount is posted to the account for Depreciation
of Receivables. The sales tax is adjusted in the posting.
Flat-Rate Individual Value Adjustment
You can use a valuation program to perform value adjustments. The program functions like
the dunning and payment program. Each valuation run is clearly identified by the Run date
and Identification fields.
Value Adjustment Parameters
You can specify how to execute the valuation by entering parameters for the valuation run.
You can use the parameters of an existing valuation run as a template. These parameters
include the valuation method, valuation area, and posting specifications.
Figure 100: Value Adjustment Parameters
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Lesson: Performing Accounts Receivable Closing Operations
Valuation Run
Figure 101: Valuation Run
The valuation run analyzes the accounts and documents defined in the parameters and
creates a valuation proposal. You can edit it, if necessary. The valuations can be:
●
●
Entered manually in the document at an earlier date (individual value adjustment).
Determined using a value adjustment key contained in the customer master record. During
the valuation, a certain percentage of the overdue amount is used. The number of days
that the respective items are overdue is used as a basis for this percentage (reserved for
bad debt). Several valuation keys can be created for customers of varying credit strength.
That way, overdue accounts receivable from weaker customers is reduced more than
those for stronger customers.
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Valuation Transfer
Figure 102: Valuation Transfer
The last stage of the valuation process is the transfer. G/L documents post the valuation, and
the valuation is also entered in the valuated documents, so that the valuation can be traced at
any time.
Note:
The valuations can be performed in different ways if the financial statement is
created using different sets of accounting standards. The differing results are then
posted to separate accounts that are used in different financial statement
versions.
Note:
The valuation run can also be used to discount open accounts receivable, which
means they are valuated at their net present value. This is a requirement in some
countries.
LESSON SUMMARY
You should now be able to:
●
132
Perform accounts receivable closing operations
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Unit 5
Learning Assessment
1. The general data section of the Business Partner master record must be created
separately for every company code that does business with that customer.
Determine whether this statement is true or false.
X
True
X
False
2. What ties the posting of a customer to the general ledger?
3. When a short payment for an incoming payment is processed using the partial payment
method, the invoice being partially paid is cleared and a new open item in the amount of
the payment difference is created.
Determine whether this statement is true or false.
X
True
X
False
4. Miscellaneous invoices that do not pertain to a sales order can only be entered in the
accounts receivable component using traditional SAP GUI transactions.
Determine whether this statement is true or false.
X
True
X
False
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Unit 5: Learning Assessment
5. How can you tell whether a customer has been dunned?
Choose the correct answer.
X
A You look in the correspondence section of the customer master record.
X
B You look at the line items details in the customer account.
X
C Both A and B.
X
D None of the above.
6. With the transactional app Manage Dispute Cases, you can do the following:
Choose the correct answers.
X
A Search and filter dispute cases based on various criteria.
X
B View the details of a dispute case, such as text notes and linked invoices.
X
C Edit dispute case attributes, such as the processor.
X
D Add text notes to a dispute case.
X
E Add file attachments to a dispute case.
7. Which are the three items a sales area consists of?
8. When a delivery is initially created, accounting transactions are automatically generated.
Determine whether this statement is true or false.
X
True
X
False
9. When the billing document is created in sales order management, an accounting
document that debits the customer account and posts the revenue is automatically
generated.
Determine whether this statement is true or false.
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X
True
X
False
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Unit 5: Learning Assessment
10. Which key must be entered in a customer’s master record so that the customer can be
included in the valuation program to estimate bad debt expense?
11. The value adjustment program makes a posting, which is cancelled at the beginning of the
next month. Which accounts are posted on the debit and credit side?
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Unit 5
Learning Assessment - Answers
1. The general data section of the Business Partner master record must be created
separately for every company code that does business with that customer.
Determine whether this statement is true or false.
X
True
X
False
Correct. The general data section exists just once and contains data that pertains to all
company codes.
2. What ties the posting of a customer to the general ledger?
Reconciliation account
3. When a short payment for an incoming payment is processed using the partial payment
method, the invoice being partially paid is cleared and a new open item in the amount of
the payment difference is created.
Determine whether this statement is true or false.
X
True
X
False
Correct. This statement pertains to a residual item.
4. Miscellaneous invoices that do not pertain to a sales order can only be entered in the
accounts receivable component using traditional SAP GUI transactions.
Determine whether this statement is true or false.
X
True
X
False
Correct. Miscellaneous invoices can also be entered in the accounts receivable
component using a Fiori app.
136
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Unit 5: Learning Assessment - Answers
5. How can you tell whether a customer has been dunned?
Choose the correct answer.
X
A You look in the correspondence section of the customer master record.
X
B You look at the line items details in the customer account.
X
C Both A and B.
X
D None of the above.
Correct. The system documents dunning notices that have been sent by recording the
date and level of the last dunning notice sent in both the correspondence section of the
master record and in the document(s) dunned.
6. With the transactional app Manage Dispute Cases, you can do the following:
Choose the correct answers.
X
A Search and filter dispute cases based on various criteria.
X
B View the details of a dispute case, such as text notes and linked invoices.
X
C Edit dispute case attributes, such as the processor.
X
D Add text notes to a dispute case.
X
E Add file attachments to a dispute case.
Correct. All the listed options can be done through the Manage Dispute Cases app.
7. Which are the three items a sales area consists of?
Sales organization, distribution channel, and division.
8. When a delivery is initially created, accounting transactions are automatically generated.
Determine whether this statement is true or false.
X
True
X
False
Correct. The accounting transaction is not created until post goods issue occurs. At that
point, cost of goods sold is debited and inventory is credited.
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Unit 5: Learning Assessment - Answers
9. When the billing document is created in sales order management, an accounting
document that debits the customer account and posts the revenue is automatically
generated.
Determine whether this statement is true or false.
X
True
X
False
Correct. When the billing document is created in sales order management, an accounting
document that debits the customer account and posts the revenue is automatically
generated.
10. Which key must be entered in a customer’s master record so that the customer can be
included in the valuation program to estimate bad debt expense?
A value adjustment key must be entered. One can create several value adjustment keys
for various groups of customers. That way, accounts receivable that are overdue for weak
customers can be reduced by a higher percentage than for strong customers.
11. The value adjustment program makes a posting, which is cancelled at the beginning of the
next month. Which accounts are posted on the debit and credit side?
Debit: reserve for bad debt; credit: value adjustment receivables. If this posting is not
made, you can call up the corresponding error batch session: F107–Name of Run.
138
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UNIT 6
Asset Accounting
Lesson 1
Maintaining Asset Master Records
141
Lesson 2
Executing Asset Transactions
147
Lesson 3
Executing Asset Accounting Period-End Closing Activities
155
UNIT OBJECTIVES
●
Maintain asset master records
●
Execute asset transactions
●
Execute asset accounting period-end closing activities
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Unit 6: Asset Accounting
140
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Unit 6
Lesson 1
Maintaining Asset Master Records
LESSON OVERVIEW
In this lesson, you learn about asset master records and how to view the link to the general
ledger reconciliation account from the asset master record. You also learn about the main
classification criteria of asset accounting, the asset class. Finally, you learn about
depreciation areas and how depreciation is calculated in the fixed assets component.
Business Example
A company groups its asset master records using asset classes.
This company acquires a new building close to Hamburg. The asset master record needs to
be created. The building has a planned useful life of 50 years.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Maintain asset master records
Asset Master Records
An asset is typically an object, a right, or an item owned by an enterprise that is intended for
long-term use, and can be identified individually in the balance sheet. Each asset belongs to a
company code. All postings made for the asset (acquisitions, retirements, depreciation, and
so on) are posted in the assigned company code.
Note:
Additionally, you can assign the asset to a business area, a profit center, a
segment, and to various management accounting objects, like a cost center, an
internal order, or a Work Breakdown Structure (WBS) element.
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Unit 6: Asset Accounting
Figure 103: Assets and Organizational Units of Financial Accounting
Asset Class
The asset class is the main criterion when defining the asset. Each asset must be assigned to
one asset class. In the asset class, you define certain control parameters and default values
for depreciation and other master data.
Figure 104: Asset Class
In the asset class, a screen layout rule, an asset number range, and an account determination
key are assigned.
142
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Lesson: Maintaining Asset Master Records
Note:
You can also create asset classes for intangible assets and leased assets.
Functions are available for processing leases.
Assets that do not appear in the same line item of the balance sheet (such as buildings and
equipment) are typically assigned to different asset classes (with different account
determination keys). Additionally, there is at least one special asset class for assets under
construction and one for low-value assets.
Note:
The Plant Maintenance (PM) component is used for the technical management of
assets. The Treasury (TR) component is used for managing financial assets.
.
Depreciation Areas
Assets need to be valuated differently depending on the purpose of the valuation (for
example, commercial, tax, or group valuation). The SAP standard solution to display these
valuations is the depreciation area.
Depreciation areas are grouped together, according to the requirements of a specific country
or economic area, into a chart of depreciation.
The posting amounts of the depreciation areas are updated on the G/L accounts. The update
depends on the option you choose for how the depreciation area posts to the general ledger.
You can specify in the customizing of the SAP system, that a depreciation area posts either in
real time (with parallel valuation using the ledger approach, as covered in our training S4F10)
or immediately (for parallel valuation using the accounts approach).
Depreciation can only be updated periodically.
Additional depreciation areas may not be posted to the general ledger at all and are just used
for additional asset reporting.
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Unit 6: Asset Accounting
Figure 105: Depreciation Area — Define Posting to the G/ L
Asset Subnumbers
It is possible to:
●
Structure components of an asset with asset subnumbers.
●
Combine assets into group assets (typically not used in Europe).
The main asset is always automatically assigned the subnumber 0000, allowing the asset
subnumbers to be assigned as desired.
Figure 106: Group Assets and Subnumbers
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Lesson: Maintaining Asset Master Records
A group asset has its own master data. Several main assets can be assigned to a group asset.
Depreciation is calculated at the group asset level. This is important in certain countries, for
example, in the U.S.
LESSON SUMMARY
You should now be able to:
●
Maintain asset master records
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Unit 6: Asset Accounting
146
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Unit 6
Lesson 2
Executing Asset Transactions
LESSON OVERVIEW
In this lesson, you learn how to execute asset transactions. You learn how to post asset
acquisitions. You also learn how to create an asset under construction and settle it with the
building.
This lesson examines the Asset Explorer and shows how it is updated by posting transactions
to an asset.
Business Example
The employees in the FI-AA department want to test the options for postings integrated and
non-integrated asset acquisitions. Asset transactions can be entered both in the FI-AA userdepartment and in the AP department.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Execute asset transactions
Transaction Types
The transaction type is an addition to the asset posting keys 70 (debit) and 75 (credit). It
must be included when posting to an asset account. The transaction type is necessary for
asset accounting. It specifies exactly where the asset posting is listed in the asset history
sheet.
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Unit 6: Asset Accounting
Figure 107: Transaction Type
The transaction type is the distinguishing characteristic of the various asset postings, for
example:
●
Buying and selling
●
Credit memos
●
Acquisitions from internal production
●
Adjustment postings
●
Retirements without revenue
●
Depreciation and appreciation
Asset Acquisition
Asset transactions (acquisitions, retirements) can be posted in various ways to meet the
organizational and business requirements of the company. In assets accounting, you can post
in the following ways:
●
Without a vendor or a purchase order:
The offsetting entry is made to a G/L clearing account.
●
To a vendor:
There is no reference to a purchase order.
●
With materials management:
Use the following functions: purchase order, goods receipt, and invoice receipt.
148
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Lesson: Executing Asset Transactions
Figure 108: Integrated Asset Acquisition
When posting to accounts of two subsidiary ledgers, that is, to the asset and to the vendor,
the reconciliation accounts of both subsidiary ledgers are updated in the general ledger.
Figure 109: Document Entry Screen for Integrated Asset Acquisition
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Unit 6: Asset Accounting
Figure 110: Integrated Asset Acquisition — Technical Clearing Account
For an integrated asset acquisition posting, the system divides the business transaction into
an operational part and a valuating part:
●
●
For the operational part (vendor invoice), the system posts a document valid for all
accounting principles against the technical clearing account for integrated asset
acquisitions.
For each valuating part (asset posting with capitalization of the asset), the system
generates a separate document that is valid only for the given accounting principle. This
document is also posted against the technical clearing account for integrated asset
acquisitions.
In this way, the system ensures that the technical clearing account for integrated asset
acquisitions has a balance of zero (for each accounting principle and account assignment
object) for every accounting principle in the chart of depreciation. So that the system can
ensure the zero balance, manual posting cannot be made to the account.
Asset Explorer
The Asset Explorer offers an overview of the activities for an asset. You can use the Asset
Explorer to display and manage the following asset-related elements:
●
Posted transactions:
View all transactions that have been posted to the asset.
●
Asset depreciation:
Display the planned and posted depreciation per depreciation area, per period, for each
fiscal year.
●
150
Transactions:
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Lesson: Executing Asset Transactions
View the details of accounting transactions.
You can also switch the asset view inside the Asset Explorer, for example, to display another
asset without leaving the screen.
Figure 111: Asset Explorer
Figure 112: App Asset Value — Asset Explorer
The figure, App Asset Value — Asset Explorer, shows the Asset Value app.
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Unit 6: Asset Accounting
Manage Fixed Asset
SAP Fiori App: Display Asset Worklist
Figure 113: SAP Fiori App: Display Asset Worklist
The Display Asset Worklist app provides an overview of the fixed asset masters that you are
responsible for. Your area of responsibility can be defined by a flexible set of filter values for
company code, asset class, and other asset attributes.
From any single asset, you can perform the following tasks:
●
●
●
●
●
Navigate to other actions from any assets to other actions such as the Change Asset
Master or Display Asset Master.
Display the Asset Master Record Segment and the time-dependent asset master
assignments in a personalized set of asset masters.
Focus on incomplete, in process, capitalized, or retired assets if needed. Display the
number of incomplete assets depending on the configured default filter already on the
launchpad.
Download selected assets to Microsoft Excel, e-mail a link to the personalized list, or share
it by mail.
Save a personalized and filtered list as a tile on your home page.
SAP Fiori App: Manage Fixed Asset
With the Manage Fixed Asset app, all the data for an asset is in one place. A graphical
representation of the asset's life cycle provides an overview of the asset’s status and allows
you to adjust the valuation. Key figures, such as acquisition and production cost (APC),
accumulated depreciation, and netbook value, help you to understand the asset valuation in
detail. The key figures also help you to determine why unexpected value changes have
occurred, for example when special depreciation has been posted accidentally for the fixed
accident.
To access the Manage Fixed Asset app, open the Display Asset Master Worklist app. Select a
fixed asset master data and navigate to Manage Fixed Assets using the link list or the
navigation arrow. You can also navigate to this app from the following reporting apps:
●
152
Asset History Sheet
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Lesson: Executing Asset Transactions
●
Asset Balances
●
Depreciation Lists
●
Asset Transactions
Manage Fixed Assets Functions
The Manage Fixed Assets app provides functions that enable you to complete the following
tasks:
●
●
●
View key characteristics of selected assets, such as the asset number, asset class, short
description, and net book value.
Get an overview of all parallel depreciation areas and their parameters in one place, and
deep dive into the details for each depreciation area.
View key figures by area and view the depreciation due to different value corrections, such
as ordinary or special depreciation.
●
View the life cycle chart and determine how the values for your fixed asset are evolving.
●
Compare values for a range of fiscal years and several depreciation areas in parallel.
●
View master data of fixed assets with all their time-dependent and time-independent
assignments, such as cost center or supplier.
●
Add attachments.
●
Create notes.
●
Edit the asset.
LESSON SUMMARY
You should now be able to:
●
Execute asset transactions
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Unit 6: Asset Accounting
154
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Unit 6
Lesson 3
Executing Asset Accounting Period-End
Closing Activities
LESSON OVERVIEW
In this lesson, you learn about the closing operations in asset accounting. The lesson focuses
on how to create an inventory list and an asset history sheet in SAP S/4HANA.
Business Example
At the end of the month/year, a company has to post depreciation and create various asset
reports, including the asset history sheet.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Execute asset accounting period-end closing activities
Asset Period-End Closing Activities
Closing in fixed assets (FI-AA) can roughly be divided into two types of work:
●
Legal requirements:
Mandates required by the government
●
Technical and organizational tasks:
Preparatory steps that are necessary technically or support the accounting organization
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Unit 6: Asset Accounting
Figure 114: Asset Closing
With the balance carryforward program in FI-GL, the new year is opened in FI-AA. This allows
you to post to assets in the new fiscal year.
In contrast, the year-end closing program checks the following issues:
●
Asset value postings:
Depreciation values must be posted completely.
●
Asset master record information:
Asset master records must not contain any errors or be incomplete.
If the year-end closing program finds no errors, it updates the last closed fiscal year for each
depreciation area and blocks posting in asset accounting for the closed fiscal year.
Year Change and Year End Closing Program
You execute the year-end closing program of FI-AA after the auditors have finished their work
and before the G/L is ready to close for the year. The year-end closing program is typically
executed in Q1, before the books are presented for external purposes.
In a calendar year, the Balance carryforward program in FI-GL, as year change activity, is
executed in December (of the old fiscal year) or in the beginning of January (of the new fiscal
year).
Depreciation Posting Run
The depreciation posting run (program FAA_DEPRECIATION_POST) posts the different value
adjustments (depreciation) and interest to the G/L accounts in Financial Accounting.
Asset History Sheet
The asset history sheet is a legally required report in Germany. However, it is a useful report in
all countries, as it shows the beginning and ending book values of the assets and the
transactions involved.
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Lesson: Executing Asset Accounting Period-End Closing Activities
Depreciation Posting Run
The depreciation posting run can be performed for several company codes and accounting
principles.
All types of depreciation (normal depreciation, special depreciation, and unplanned
depreciation) are calculated and initially kept in the form of planned values in the Fixed Assets
application. After the period depreciation posting run, depreciation values are also displayed
in the G/L accounts and the financial statement.
Beside the postings to the corresponding depreciation accounts in general ledger accounting,
it is possible to post depreciation values to Management Accounting (controlling or CO)
objects, for example, cost centers, internal orders, or Work Breakdown Structure (WBS)
elements assigned to the asset master record. Typically, the values of depreciation area 20
(Cost Accounting) are transferred to CO.
Figure 115: Depreciation Posting Program
Asset History Sheet
The asset history sheet is an important and compact evaluation option, within asset closing.
As with financial statements, the structure of the asset history sheet is based heavily on
country-specific requirements. It is possible to create many different versions of an asset
history sheet.
The asset history sheet is a legally required report in Germany. However, the asset history
sheet is a useful report in all countries, as it shows the beginning and ending book values of
the assets and the transactions involved.
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Unit 6: Asset Accounting
Figure 116: Asset History Sheet
Each asset history sheet version groups information into the following areas:
●
Book values at the beginning of the fiscal year
●
Acquisitions
●
Retirements
●
Adjustment postings
●
Depreciation
●
Book values at the end of the fiscal year
LESSON SUMMARY
You should now be able to:
●
158
Execute asset accounting period-end closing activities
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Unit 6
Learning Assessment
1. When creating an asset master record, how is the asset number assigned?
2. What does the account determination key do for the asset?
3. Each asset belongs to a company code.
Determine whether this statement is true or false.
X
True
X
False
4. A transaction type tells us where the posting is placed on the asset history report.
Determine whether this statement is true or false.
X
True
X
False
5. What are the various methods with which acquisitions can be posted in Asset Accounting?
6. What is the purpose of the Asset Explorer?
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Unit 6: Learning Assessment
7. The asset history sheet gives us what type of information?
160
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Unit 6
Learning Assessment - Answers
1. When creating an asset master record, how is the asset number assigned?
The asset number is assigned by the asset class.
2. What does the account determination key do for the asset?
It connects the asset to the G/L account. The clearing account is linked to the account
determination key in the configuration.
3. Each asset belongs to a company code.
Determine whether this statement is true or false.
X
True
X
False
Correct. All postings made for the asset are posted in the assigned company code.
4. A transaction type tells us where the posting is placed on the asset history report.
Determine whether this statement is true or false.
X
True
X
False
Correct. A transaction type tells us where the posting is placed on the asset history sheet.
5. What are the various methods with which acquisitions can be posted in Asset Accounting?
Examples include external acquisitions with vendor or external acquisitions with
automated offsetting entry.
6. What is the purpose of the Asset Explorer?
The Asset Explorer enables a clear overview of the activity for an asset per depreciation
area and fiscal year for planned values, posted transactions, posted amounts, posted and
planned depreciation, and depreciation parameters.
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Unit 6: Learning Assessment - Answers
7. The asset history sheet gives us what type of information?
The asset history sheet is a complete evaluation for closing. It has groupings such as: book
values at the beginning of the year, acquisitions, retirements, depreciation, adjustments,
and book values at the end of the year.
162
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UNIT 7
Bank Accounting
Lesson 1
Maintaining Bank Accounting Master Records
165
Lesson 2
Managing Bank Accounting Transactions
171
UNIT OBJECTIVES
●
Maintain bank accounting master records
●
Manage petty cash
●
Enter a check deposit transaction manually
●
Post-process a bank account statement
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163
Unit 7: Bank Accounting
164
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Unit 7
Lesson 1
Maintaining Bank Accounting Master Records
LESSON OVERVIEW
In this lesson, you learn about bank master records and learn the difference between house
and non-house banks. You also learn how bank accounts are linked to general ledger
accounts. You create a new bank and then locate the bank in a list of banks.
Business Example
Your company receives a letter from the UNI-Bank informing it about a change to its name
because UNI-Bank has been taken over by Interbank. The name change has to be entered into
the SAP system. A customer also informs your company of its bank details by telephone.
These details must be entered in the customer master record.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Maintain bank accounting master records
Manage Banks
The Manage Banks app allows you to display, create, and change data about the banks your
company, your customers, and your suppliers use to transact business.
Figure 117: Bank Master Data
The main elements of a new bank in the system are outlined above and include the bank
country and the bank key.
If a bank is set up in the SAP system, the basic data is always available, for example, when
entering the bank information in a customer or vendor master record. To access the bank
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Unit 7: Bank Accounting
data, simply enter the country of the bank and the bank key. The system finds the name and
address of the bank in the bank directory. If the bank is not yet available, it can be entered
manually using the app Manage Banks. It is then added to the bank directory, if it has been
added to the business partner master record.
Bank Relationship Management — House Bank Accounts
Figure 118: Function Overview of Bank Relationship Management - House Bank Accounts
With Bank Relationship Management, cash managers and bank accountants can centralize
the management of bank accounts using bank account master data, a table view of banks and
bank accounts, workflow processes (for opening, changing or closing bank accounts), and
workflow processes for periodic review of master data.
Cash managers and accountants in the subsidiaries can get rid of the tedious manual
reconciliation processes when creating, changing, or closing a bank account. The Bank
Relationship Management in SAP S/4HANA Cash Management facilitates an integrated
opening, changing, and closing process for all involved parties. No information is lost along
the way and the bank account Information is always harmonized.
Depending on your licence you can use the full scope of SAP S/4HANA Cash Management or
a basic scope of Cash and Liquidity Management. For more detailed information about the
features and functions, see the SAP Help Portal. For licence information, contact your SAP
Account manager.
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Lesson: Maintaining Bank Accounting Master Records
Figure 119: Bank and Bank Account Hierarchy
You can manage your bank accounts using different views. The Bank Hierarchy view displays
banks in a hierarchical structure. The hierarchical relationship is constructed by business
partners that represent banks or bank groups. By default, only organization business partners
assigned with the Bank (TR0703) role are displayed in the structure.
The Account List allows you to display and organize your bank accounts in different ways. For
example, after right-clicking a column, there are sorting, grouping, and filtering options.
In addition to the standard views, including the Bank Hierarchy view and the Account List
view, you can also define your own views for displaying bank accounts in hierarchical
structures, by using the bank account groups. It enables you to define different views for
different management purposes.
House banks are banks where we (the company code) have an account(s).
Each house bank is represented in the SAP system by a house bank ID and each account at
that bank is represented by an account ID. These IDs are codes of up to four characters,
which can be alphanumeric.
To be able to run your payment processes, you need to assign each of your house bank
accounts to a G/L account.
Depending on the type of G/L account you want to assign to your house bank account, refer
to either of the following approaches:
●
●
G/L Account Type Balance Sheet Account
G/L Account Type Cash Account (Bank Reconciliation Account) - as of SAP S/4HANA
2020
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Unit 7: Bank Accounting
Figure 120: House Bank Account - G/L Account Type: Balance Sheet Account
House Bank Account - G/L Account Type: Balance Sheet Account
Balance Sheet Accounts: Create the required Bank G/L accounts and Bank clearing accounts
with Balance Sheet Accounts as their G/L account types. Using this approach, you usually
need to create a new set of G/L accounts every time you set up a new house bank account
connection.
The house bank ID and account ID are then entered in a G/L account master record, which
represents a bank account in the general ledger. This means that the following relationship
exists:
Bank account at house bank <—> combination house bank and account ID <—> G/L
account
There is a 1:1 relationship between the house bank account in Bank Relationship Management
and the G/L account in General Ledger Accounting.
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Lesson: Maintaining Bank Accounting Master Records
Figure 121: House Bank Account - G/L Account Type: Cash Account (Bank Reconciliation Account)
House Bank Account - G/L Account Type: Cash Account (Bank Reconciliation Account)
Bank Reconciliation Accounts: This approach enables you to link different bank accounts
from bank accounting to a single set of G/L accounts (Bank Reconciliation Account and Bank
Subaccounts) in General Ledger Accounting. With this approach, you can reuse this set of
accounts as many times as necessary for a new house bank connection (provided that the set
of accounts with its settings matches the requirements of the connected house bank and your
reporting regulations).
Example: If your company makes payments using multiple national and international banks,
you can just define two sets of G/L accounts. For the national banks, you assign all your local
house bank accounts to one bank reconciliation account with one bank subaccount (that is,
clearing account) per payment method. For international banks, you assign all your foreign
house bank accounts to one bank reconciliation account with one bank subaccount (that is,
clearing account) per payment method.
The Bank G/L account is assigned to the G/L account type Cash Account in the master
record. You use the G/L account subtype B to define the use of the G/L account as a Bank
Reconciliation Account.
Create a bank clearing account in General Ledger Accounting for each required payment
method. These accounts are also assigned to the G/L account type Cash Account. The G/L
account subtype S - Bank Sub Account is used to define the use as a bank clearing account.
The bank reconciliation account is then assigned directly to the Bank Sub Accounts in the G/L
account master record.
This means that there is an n:1 relationship between house bank accounts in Bank
Relationship Management and the G/L account in General Ledger Accounting.
Possible advantages:
●
●
Reduced reconciliation effort between the Cash Management and General Ledger
Accounting departments when creating new bank accounts in the system.
Reduced number of bank and bank clearing accounts in General Ledger Accounting over
the time.
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Unit 7: Bank Accounting
Note:
There is no need to migrate or move from the known Balance Sheet Approach to
the Bank Reconciliation Account Approach. Since you control the method through
master data settings in the House Bank Account an individual approach for each
House Bank Account is possible. Thereby a side-by-side approach is feasible. This
also implies that no big-bang solution must be implemented as customer have to
option to gradually move to the Bank Account Reconciliation, if desired.
LESSON SUMMARY
You should now be able to:
●
170
Maintain bank accounting master records
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Unit 7
Lesson 2
Managing Bank Accounting Transactions
LESSON OVERVIEW
In this lesson, you learn how to use the petty cash journal. In addition, you learn how to handle
the clearing of open items from customers by posting a check deposit list and a bank account
statement.
Business Example
The SAP system enables you to keep cash journals. Your company uses this function to track
petty cash transactions online.
The processing of incoming checks is handled differently depending on the country where
they are located, for example:
●
●
Company code 1010 (Germany) receives the checks directly from its customers and sends
the checks to the bank with a check deposit list.
Company code 1710 (U.S.) uses their house bank's lockbox service and receives lockbox
data files containing information about the checks received.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Manage petty cash
●
Enter a check deposit transaction manually
●
Post-process a bank account statement
Cash Journals
SAP offers cash journals to manage petty cash. You can create cash journals that are uniquely
identified by a four-character code.
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Unit 7: Bank Accounting
Figure 122: Cash Journals
Each cash journal must be assigned to one G/L account, which represents the petty cash
journal account in the general ledger. Cash transactions are saved separately in the cash
journal and are transferred periodically (for example, daily) to the general ledger.
Figure 123: Cash Journal Transaction
The data entry screen for cash journal transactions is divided into the following sections:
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Lesson: Managing Bank Accounting Transactions
Data selection
Select the time period of the data.
Balance display
Displays the totals of incoming and outgoing cash and the beginning and ending balance.
Accounting transactions
Enter the cash journal transactions. A distinction is made here between “Cash
payments”, “Cash receipts”, and “Check receipts”. The offset account for each
transaction (and tax code if required) is set up ahead of time in configuration.
Accounting transactions are saved separately in the cash journal and are transferred
periodically to the general ledger. The transferred transactions can be printed as a
journal.
A receipt can be printed for each individual transaction.
Cash Journal Transactions
The figure, Types of Cash Journal Transactions, shows the possible types of cash journal
transactions and their corresponding posting records.
Figure 124: Types of Cash Journal Transactions
There can be many concrete accounting transactions with specified bank clearing accounts,
revenue accounts, and expense accounts, all with a descriptive text. One example for a
business transaction of the type Expense posting is cash purchase of office supplies. Here,
the expense account Office material is used. The accounting transactions are set up in
customizing, but can also be created directly from the application if a new accounting
transaction is deemed necessary during daily operations.
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Unit 7: Bank Accounting
Although customer and vendor payments can be made using the cash journal, the payment
does not clear the open item. This clearing is not done until a second step, as part of the
accounts payable or the accounts receivable. Use the menu path Account Clearing and select
the invoice and the payment.
Note:
Incoming and outgoing bank payments are not posted directly to bank accounts;
they are first posted to bank clearing accounts. The bank clearing accounts are
then cleared when processing the account statement from the bank.
Check Handling
Processing Incoming Checks
Figure 125: Processing Incoming Checks
The processing of incoming checks is handled differently internationally. The figure,
Processing Incoming Checks, shows the two most common procedures based on company
codes 1010 (Germany) and 1710 (United States). In Germany, payments are often made using
bank transfers. In the United States, checks are the most common method of payment. For
this reason, the number of incoming checks in Germany is relatively small and can be handled
by the accounting department. In the United States, many companies use a special bank
service, called the lockbox. This makes check processing considerably easier.
●
Germany:
The checks are sent directly from the customers to the accounting department. The paid
items are cleared, the checks received are posted to special incoming check accounts, and
the checks and a check deposit list are sent to the bank. The bank collects the money from
the customers and posts it to the bank account. The posting appears on the bank account
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Lesson: Managing Bank Accounting Transactions
statement and the amount received clears the incoming check account in the general
ledger.
●
United States:
The checks are sent directly from customers to the company's lockbox. The bank collects
the money and records the checks and payment information in a lockbox file. The bank
sends this lockbox file to the accounting department. By posting the lockbox data, the paid
items are cleared in accounts receivable, and the check amounts are posted directly to the
incoming checks bank G/L account.
Depositing Checks
Figure 126: Depositing Checks
Illustrated in the figure, Depositing Checks, the process for depositing checks is as follows:
1. Scan incoming checks:
The incoming checks can be processed manually or with a check scanner.
2. Display a list of the checks:
After all checks have been entered, a list of checks to be deposited is available in the
system and can be corrected if necessary.
3. Print a list of the checks:
The check deposit lists can be printed out and sent to the bank along with the checks.
4. Create check-related postings:
Batch input sessions are created from the check deposit lists and have to be processed to
create the related postings.
5. Post directly:
Posting can be completed directly, without a batch input session, using a special postprocessing transaction.
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Unit 7: Bank Accounting
Check Deposit Lists
When posting a check deposit list, two batch input sessions are generated; the subledger
session and the bank posting session. Both sessions must be processed to make the
associated postings in the general ledger.
●
Subledger accounting session:
The subledger accounting session is generally processed from accounts receivable and
clears the open items paid. The offsetting posting is made to a check clearing account. The
items to be cleared are found based on the data included on the check deposit list
provided (such as delivery number, document number, and so on).
●
Bank posting session:
The bank posting session is normally processed by the financial department (or by cash
management). They post check amounts to the incoming checks account. The offsetting
posting is made to a check clearing account.
Figure 127: Posting a Check Deposit
The bank ledger accounting session should be processed first so that cash management
receives the most up-to-date information in a timely manner. When processing the subledger
accounting session, payment differences may, in certain cases, need to be dealt with
manually.
Lockbox
When using a lockbox, the customers send their checks and payment information directly to
the bank. The bank is paid a fee to input the data about the checks received. The bank saves
the check and payment information in a file and sends it to the accounting department using
data transfer, for example, data line or Electronic Document Interface (EDI).
The lockbox file is recorded in the SAP system. The incoming checks account is posted to and
the paid invoices are cleared. Complete payment information allows the SAP system to
proceed reliably with the clearing. If the system cannot find an invoice to be paid, the payment
information must be processed manually afterwards using the Post Processing function.
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Lesson: Managing Bank Accounting Transactions
Figure 128: Lockbox
Electronic Bank Statement Processing
Figure 129: Electronic Bank Statement Processing
When the electronic bank statement is imported, the system runs through several programs
to read the data of the bank statement and assign it to the correct posting rules.
Furthermore, the system checks for clearing information, could be used for the automatic
clearing of customer incoming payments. If a clear match is found, the open item on the
customer account is cleared and the corresponding posting on the bank, bank subaccount,
and customer account is performed.
If the system cannot match the bank statement item to any information in the system, it leads
to an exception and the item must be post-processed.
You can use the app Reprocess Bank Statement Items to reprocess statement information
that were not processed automatically. In this app, you can reprocess a bank statement item,
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Unit 7: Bank Accounting
mark it as reprocessed, and enter a reason for reprocessing. You can also add attachments to
bank statement items.
You can define your own reprocessing rules to post open bank statement items. You can also
automate these rules so that they automatically run with the import of bank statements.
Key features of this app include:
●
Assign payments to customer/supplier accounts or general ledger accounts and clear
open items
●
Post payments to customer/supplier accounts or general ledger accounts
●
Confirm company-initiated payments like checks or bank transfers
Figure 130: Electronic Bank Statement - Posting a Customer Payment
If a customer pays his open invoices by bank transfer, the incoming payment is usually posted
in two steps:
1. The cash receipt on the bank account is posted to a Bank Subaccount in Bank Accounting
(Posting Area 1)
2. The open item is found and cleared in the Accounts Receivable subledger (Posting Area 2)
LESSON SUMMARY
You should now be able to:
178
●
Manage petty cash
●
Enter a check deposit transaction manually
●
Post-process a bank account statement
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Unit 7
Learning Assessment
1. All house bank accounts are represented by G/L accounts in SAP.
Determine whether this statement is true or false.
X
True
X
False
2. Before the details of a bank can be entered in a business partner master record, that bank
must exist in the bank directory.
Determine whether this statement is true or false.
X
True
X
False
3. When you enter a transaction in the Cash Payments tab page of the cash journal, you
automatically debit the petty cash journal account?
Determine whether this statement is true or false.
X
True
X
False
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Unit 7
Learning Assessment - Answers
1. All house bank accounts are represented by G/L accounts in SAP.
Determine whether this statement is true or false.
X
True
X
False
Correct. A house bank account is always represented by a G/L account. Either the G/L
account is a Balance Sheet account 1:1 relationship between house bank account and G/L
account or the G/L account is a Cash Account (n:1 relationship between house bank
accounts and the G/L accounts.
2. Before the details of a bank can be entered in a business partner master record, that bank
must exist in the bank directory.
Determine whether this statement is true or false.
X
True
X
False
Correct. You can create a bank by entering its details manually in the master record of a
business partner. The bank will then automatically appear in the bank directory report.
3. When you enter a transaction in the Cash Payments tab page of the cash journal, you
automatically debit the petty cash journal account?
Determine whether this statement is true or false.
X
True
X
False
Correct. The cash journal account is credited when you post cash payments.
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UNIT 8
Closing Operations in General
Ledger Accounting
Lesson 1
Performing General Ledger (G/L) Closing Operations
183
UNIT OBJECTIVES
●
Use the Financial Closing Cockpit
●
Use the Accruals Management
●
Enter a G/L account document for a ledger group
●
Analyze data for goods and invoices received
●
Run evaluations in G/L accounting
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Unit 8: Closing Operations in General Ledger Accounting
182
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Unit 8
Lesson 1
Performing General Ledger (G/L) Closing
Operations
LESSON OVERVIEW
This lesson provides an overview of the financial closing process in the General Ledger. The
lesson also introduces the Financial Closing Cockpit, which is the tool that is used to perform
the activities required during the financial closing process. The lesson focuses on the
following topics:
●
Entering accrual/deferral documents
●
Regrouping the GR/IR clearing account
●
Posting in the Ledger
●
Running financial statements
Business Example
At the end of the fiscal year, every company code must create financial statements according
to its country’s legal requirements.
Your company uses the Financial Closing Cockpit to control the activities in the financial
closing process.
To keep the closing process understandable and easy to follow, your company first closes the
subledgers before closing the General Ledger. The closing activities are performed in the
order recommended by SAP.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Use the Financial Closing Cockpit
●
Use the Accruals Management
●
Enter a G/L account document for a ledger group
●
Analyze data for goods and invoices received
●
Run evaluations in G/L accounting
General Ledger Closing
At the start of the new fiscal year, the balance carryforward program is run. This ensures that
the balances of the G/L accounts are carried forward to the new fiscal year.
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Unit 8: Closing Operations in General Ledger Accounting
Figure 131: General Ledger Closing
The posting periods of the old fiscal year are then blocked and special periods for closing
entries are opened. Technical reconciliation between transaction figures and documents
guarantees that documents are posted without any technical errors.
Foreign currency documents are then evaluated, accrual/deferral documents are posted, and
GR/IR clearing accounts are analyzed. Following that, the respective accounts are updated.
The special periods can then be closed.
For documentation purposes, the balance audit trail is made and the financial statements are
created. Additional reports are prepared for legal reporting purposes.
SAP S/4HANA Financial Closing Cockpit
The SAP S/4HANA Financial Closing Cockpit enables you to create a structured interface for
executing transactions and programs that form part of complex processes, such as those
used in Financial Closing.
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Lesson: Performing General Ledger (G/L) Closing Operations
Figure 132: SAP S/4HANA Financial Closing Cockpit
The main capabilities of the SAP S/4HANA Financial Closing Cockpit offering can be grouped
in three sections:
Governance and Compliance
●
Define a global game plan for the entity close.
●
Leverage it for multiple org. units and closing cycles.
●
Audit trail, logging of results, and documentation.
Closing Efficiency
●
Automated closing tasks, even in remote systems.
●
Powerful, user-friendly application for manual tasks.
●
Collaboration, notifications, and workflows.
Transparency and Insight
●
Real-time insight into the closing status.
●
Monitoring by subsidiaries and headquarters.
●
Close analysis to identify strengths and weaknesses.
Stronger Governance
The main improvement points for process governance include:
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Unit 8: Closing Operations in General Ledger Accounting
●
●
●
●
●
●
●
●
Closing Templates as Global Closing Plan: Define a template once on the required
Organizational Unit level and leverage it as a task list for multiple closing cycles. Assign a
single or multiple processors per task. Input task dependencies and a relative default
schedule.
Re-usable Task Group as Common Building Block: Define a task group once and apply it
for multiple Organizational Units and in multiple templates.
Detailed Authorization Concept:
-
Using transaction codes
-
For templates and task lists
-
For org units and tasks
-
By activity (display, execute, schedule, assign, and so on)
Automatic and Manual Documentation is supported.
Comprehensive Audit Trail: All information is securely stored in the SAP S/4HANA
Financial Closing cockpit itself.
Quality Assurance: Customers choose if templates are maintained in development or
directly in production systems.
Internal Controls: Support of “normal ” closing tasks and custom “internal control” tasks.
For example, an internal control could be checking the spool list of the depreciation run to
check for any assets with errors.
Audit support: Authorization can be easily restricted as required, download task lists with
notes and status information, and download audit trails.
Increased Efficiency
The main improvements in efficiency are achieved by:
●
●
Real-time task execution for tasks in multiple back-end systems.
Scheduled task execution for automatic batch processing with task-related triggers to
automatically start tasks (optional configuration).
●
Automatic alerts as office mail or SAP mail.
●
Collaboration with the FCC as the central communication hub.
●
Language localization for around 30 languages is available and tasks can be maintained in
multiple languages.
Better Insight
You have comprehensive insight into the closing process through:
186
●
Real-time visibility on a detail and aggregate level.
●
Comparison of actual start or end time/duration with planned start or end time/duration.
●
Fiori closing dashboard application.
●
Workflow monitoring and automatic tasks monitoring.
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Lesson: Performing General Ledger (G/L) Closing Operations
Closing Procedure in the General Ledger
At the end of the fiscal year, the companies in the IDES group have to create accruals, which
are typically reversed at the beginning of the month. After closing operations are complete,
you have to run the financial statements.
The closing procedure in the General Ledger involves the completion of a number of tasks, for
example, posting a journal entry or an expense accrual, and generating statements and
reports.
Accruals Management
Revenues and expenses, which were posted in a specific posting period, often originate in a
different period. For this reason, such revenues and expenses must be accrued; that is, they
must be divided over the periods in which they are incurred.
Accrual and Deferral Postings
Figure 133: Accrual and Deferral Postings
You can post information in the system using the following methods:
Accruals
The expense or revenue belongs to the current period, from an accounting point of view,
but is not posted until a later period, because the invoice has not yet been sent or
received.
Deferrals
The expense or revenue was posted in the current period (invoice sent/received), but the
actual business transaction, or part of it, is actually incurred in a future period.
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Unit 8: Closing Operations in General Ledger Accounting
Accruals Process Overview with Intelligent ERP
Figure 134: Accruals Process Overview with Intelligent ERP
SAP S/4HANA for Accruals Management is a tool you use to calculate, review and post
accruals automatically. Contract-like data from Manual Accruals is transferred to the (new)
SAP S/4HANA Accrual Engine and after it processes it, the Accrual Engine performs the
periodic postings. You work with the application component Manual Accrual of the Accrual
Engine, not the engine itself, much like you operate the engine of a car indirectly.
With the application component Purchase Order Accruals, it is possible to automatically
calculate and post purchase order accruals. You can also optionally implement a review and
approval process for the monthly accrual amounts.
The S/4HANA Accruals Management is optimized for S/4HANA:
●
It is fully integrated into the General Ledger:
-
-
●
188
All currencies of General Ledger are supported.
The Accrual Engine postings are stored only as line items of the universal journal entry,
in table ACDOCA.
-
The fiscal year variant of the G/L ledgers are supported.
-
Standard FI reversal, for example, using transaction FB08 or F.80 is supported.
It enables complex postings, more than two line items are possible by customer-defined of
posting schemas.
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Lesson: Performing General Ledger (G/L) Closing Operations
Using the Accruals Management
Figure 135: Using the Accruals Management
The figure, Using the Accruals Management, shows an example of a deferral where an
expense invoice for EUR 120 is received at the start of the year and posted in the first period.
However, the invoice covers an asset that is used throughout the entire year (for example,
insurance). The expense must therefore be distributed over all periods of the fiscal year
equally.
The posting for the deferrals shown in the figure, Using the Accruals Management, proceeds
as follows:
1. Invoice is received:
The invoice for EUR 120 is received in accounts payable in the first period and is posted
there. The posting record is:
Expense account to vendor account
2. Amount is transferred from the expense account to the invoice-deferral account:
Using an opening posting, the entire amount is transferred from the expense account to
an account for invoice deferral items. The posting record is:
Prepayments and accrued income to expense account
3. Amount posted back to the expense account:
During the period-end closing, part of the amount gets posted back to the expense
account, that is, prepayments and accrued income get prorated. The posting record is:
Expense account to prepayments and accrued income
4. Residual amount is posted to an expense account:
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Unit 8: Closing Operations in General Ledger Accounting
If the contract is terminated prematurely, the entire residual amount is posted to an
expense account. The posting record is:
Expense account to prepayments and accrued income
Manual Accruals Process
Figure 136: Manual Accruals Process Outline
There are two basic processes for Manual Accruals you perform when using the accrual
engine:
●
●
190
Maintain basis data: The contract-like master data is stored as basis data (accrual objects)
in the accrual engine. The basis data contains all relevant information that is necessary for
making the accrual postings. The basis data is time-dependent.
Periodic start of the accrual run: Accrual objects are selected. The Accrual Engine
evaluates the postings in the Universal Journal (ACDOCA). In table ACDOCA all
information is stored that the Accrual Engine needs to determine which amounts have
already been posted for an accrual item. The accruals postings are stored only in the
regular FI documents, including the ACDOCA.
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Lesson: Performing General Ledger (G/L) Closing Operations
Ledger Groups
Figure 137: Ledger Groups – Transactions
A posting document by default updates all ledgers. You use the Ledger Group field during
posting to update specific ledgers or even an individual ledger.
You define additional ledgers in customizing. Each ledger is assigned to at least one ledger
group (that is generated automatically when you create the ledger). You can also group
multiple ledgers with similar behavior into ledger groups to avoid having to post multiple
documents to individual ledgers.
Figure 138: Extension Ledger - Use Cases
An extension ledger is a special type of parallel ledger in SAP S/4HANA. An extension ledger
stores delta values "on top" of an underlying ledger, providing a flexible mechanism for
adjustments and reporting. An important use case is to create management accounting views
that differ from external/legal views of accounting data. Reporting on the extension ledger
always includes the data of the base ledger (in the figure, Ledger Groups – Transactions, the
IFRS ledger for cases A and C, and the local GAAP for B). You can have multiple extension
ledgers point to the same underlying ledger. A ledger group is created for each extension
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Unit 8: Closing Operations in General Ledger Accounting
ledger you create and you can also add extension ledgers to other ledger groups just like the
main ledgers.
The major benefits of extension ledgers include:
●
●
●
●
Reduced data footprint, as the data posted is only the specific delta to the main ledger.
Reduced reconciliation as only (manual) delta postings are maintained in the extension
ledger (= Type "Standard Journal Entries).
Extension ledgers are stored in the universal journal – just as for main ledgers, providing
the same reporting options.
You can assign a separate posting period variant to the extension ledger and therefore
open and close it separately to your legal accounting.
Goods and Invoices Received (GR/IR)
Goods Receipt Invoice Receipt Business Scenario
Figure 139: Goods Receipt Invoice Receipt Business Scenario
For each goods receipt (GR) and invoice receipt (IR), a corresponding FI document is posted
to a GR/IR account. If the quantities and prices for the goods receipt matches those in the
invoice, the system automatically clears these items on the GR/IR account. If, for example,
there are missing goods receipts or invoice receipts or differing quantities or amounts, the
items remain open on the GR/IR account. These items then need to be processed separately.
●
Invoice or goods receipt is missing
●
Amounts do not match
●
Purchase order item was created with an outdated price list
●
Delivery costs were posted on the wrong GR/IR account
The GR/IR account reconciliation process is an exception handling process for all purchase
order items, where invoice receipts and goods receipts don't balance after some time. The
general ledger accountant and other involved parties, need to understand the business
situation on the level of a purchase order item and decide how to solve the situation. The
purpose of the app Reconcile GR/IR Accounts and the app Monitor GR/IR Account
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Lesson: Performing General Ledger (G/L) Closing Operations
Reconciliation is to support all involved parties, such as the general ledger accountant, the
buying agent and the warehouse staff, with the following:
●
Understanding the root cause of issues as quickly as possible
●
Take the right series of steps to solve the issue
GR/IR Analysis
Figure 140: GR/IR Analysis
At the end of a period, the balance of this account is in general not zero.
When the books are closed, the balances need to be listed as either an asset or a liability in the
financial statements. Assets and liabilities can briefly be described in the following way:
●
Asset balance:
Listed in the account for goods that have been billed, but not yet delivered.
●
Liability balance:
Listed in the account for goods that have been delivered, but not yet invoiced.
The GR/IR is analyzed using a program that enables balances to be posted either as an asset
(to the account for Goods billed but not yet delivered) or as a liability (to the account for Goods
delivered but not yet invoiced). The postings are reversed on the first day of the next period,
since reposting during daily business would lead to erroneous figures.
A clearing posting is normally completed using a correction account. The GR/IR clearing
account and its correction account are sometimes shown only in the appendix of the financial
statement.
The details of how a clearing posting is handled varies by country. For example, in the United
States, there is a regulation which prescribes that goods received, but not invoiced, must be
recorded. There is no legal liability when invoices have been received but the related goods
have not been received.
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Unit 8: Closing Operations in General Ledger Accounting
SAP S/4HANA Analytics
With embedded analytics in SAP S/4HANA, everything is on the same technical stack and
uses the same user interface. This structure improves the Time To Customer (TCO) and helps
the user to be more efficient. The embedded analytics are available inside the business
processes, which makes the processing more efficient. The simplified data model reduces the
redundancy of data and so more space is available to keep a longer data history. The
simplified data model reduces the number of tables, which makes it easier to create Virtual
Data Models.
S/4HANA Analytics Architecture
Figure 141: S/4HANA Analytics Architecture
SAP S/4HANA blends transactions and analytics allowing operational reporting on live
transactional data.
With SAP S/4HANA, this concept is supported by SAP Core Data Services (CDS) views for
real-time operational reporting. The content is represented as a Virtual Data Model (VDM),
which is based on the transactional and master data tables of SAP S/4HANA. CDS views are
developed, maintained, and extended in the ABAP layer of the SAP S/4HANA system. The
system generates SQL-Runtime-Views in SAP HANA to execute the data read and
transformation inside the SAP HANA Database Layer.
194
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Lesson: Performing General Ledger (G/L) Closing Operations
SAP S/4HANA Embedded Analytics Offering
Figure 142: SAP S/4HANA Embedded Analytics Offering
The SAP S/4HANA for Analytics roadmap shows three types of users. Depending on the role
inside a company, a user falls into one of the following user roles categories:
●
●
●
The IT user, who develops CDS view, new apps, and planning functions.
The Analytic key user, who creates, maintains queries, predefined reports, KPIs,
dashboards tiles, and enables the end users to find the right reports.
The Analytic end user, who works with the different analytical tools to consume the data,
perform analysis, and act accordingly.
SAP Analytics Cloud
Figure 143: SAP Analytics Cloud
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Unit 8: Closing Operations in General Ledger Accounting
SAP Analytics Cloud (SAC) is a solution on the SAP HANA Cloud Platform and allows
visualization, planning, and prediction in a safe cloud-based environment. SAC is a selfservice business analytics tool.
SAC creates data models and analyzes the current situation, checks the possible causes, and
designs scenarios of the future. Doing this SAC integrates Business Intelligence Predictive
and Planning Functions.
The idea of SAC is to offer all analytical functions in one product only to the end user, the
decider, and IT departments. SAC offers real-time analysis, planning, and forecasts in one
application. By doing so, SAC is a BI tool with complete functionality which can work
independently from other SAP applications.
Users can refer to data from several internal and external sources, execute planning which
contains predictive modeling elements, and can visualize this with the same tool. Having
access to a lot of data from different sources, the user gets both a consolidated and real-live
view of their "world“.
Planning:
With the help of the SAC planning functionality, financial plans and operating plans can be set
up on one platform and be linked, to come to improved decisions.
Predictive Analytics:
●
Machine Learning offers new information during analysis.
●
Complex scenarios about the future can be modeled and used for getting to a decision.
All important application data is stored on the HANA database of the company. Functionality
like BI, Planning, and Predictive Analytics are stored in the cloud. SAC can be seen as the
analytical engine in SAP HANA.
The Analytics Cloud Software is completely installed as "Software as a Service“ (SaaS),
hosted and maintained, and updated by SAP itself in its data centers.
If a company uses SAP HANA On-Premise:
●
SAC is called using a browser.
●
Access to the company data takes place through reverse proxy.
●
Doing so, the data remains in the company and doesn't exit the browser.
Non-SAP-HANA companies:
196
●
Data is replicated in the cloud.
●
Data leaves the corporate network.
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Lesson: Performing General Ledger (G/L) Closing Operations
Figure 144: Financial Reporting with SAC using Delivered Business Content
For Financial Reporting SAC Business Content (Stories and a Digital Boardroom) is delivered.
This content is built based on SAP S/4HANA On Premise Live Connectivity.
The CDS view which exposes the financial KPIs uses semantic tags for defining the KPIs.
As an analysis layer of the SAP Business Technology Platform, SAC supports the operational
reporting of the entire company. The interaction between SAP SAC and SAP S/4HANA makes
it possible to carry out real-time data analyzes directly on Core Data Services (CDS). With a
large number of access options to different data, users get a quick overview of the operational
data in the SAP system.
The Digital Boardroom shows the Company’s financial situation in real-time for the current
and previous year and provides FI KPIs in different topics based on the classification of
Growth, Profitability, and Liquidity.
This content can be plugged into a S/4HANA system to display content out of the box.
LESSON SUMMARY
You should now be able to:
●
Use the Financial Closing Cockpit
●
Use the Accruals Management
●
Enter a G/L account document for a ledger group
●
Analyze data for goods and invoices received
●
Run evaluations in G/L accounting
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Unit 8: Closing Operations in General Ledger Accounting
198
© Copyright. All rights reserved.
Unit 8
Learning Assessment
1. The Financial Closing cockpit allows you to organize your closing activities on various
organizational levels.
Determine whether this statement is true or false.
X
True
X
False
2. Revenues and expenses that were posted in a specific posting period often originate in a
different period. For this reason, such revenues and expenses must be accrued. What
does this mean?
3. If there is a credit balance for a purchasing transaction in the GR/IR account when the
books are to be closed, the Regroup GR/IR program moves that balance to which
account?
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199
Unit 8
Learning Assessment - Answers
1. The Financial Closing cockpit allows you to organize your closing activities on various
organizational levels.
Determine whether this statement is true or false.
X
True
X
False
Correct. With the SAP FCc you can organize closing on multiple levels (usually Controlling
Area/Company Code).
2. Revenues and expenses that were posted in a specific posting period often originate in a
different period. For this reason, such revenues and expenses must be accrued. What
does this mean?
They must be divided over the periods in which they are incurred.
3. If there is a credit balance for a purchasing transaction in the GR/IR account when the
books are to be closed, the Regroup GR/IR program moves that balance to which
account?
Goods Delivered but not Invoiced
200
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