Configuring the G/L
Accounts
G/L Overview
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If the transaction appears externally (FI), it’s
recorded to the general ledger
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Via direct posting
Via sub-ledger accounts (reconciliation
accounts)
Via settlements from internal accounting
systems
It’s the complete, centralized, real-time
record of all business transactions
G/L Overview
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Accounting data is always complete and
accurate
We can look at (in real time)
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Detailed account information
Summarized account totals
Evaluations such as balance sheets and P/L
statements
G/L accounts and cost accounting areas are
updated automatically
Everything Financial winds up
in the GL
From help.sap.com
Financial Master Data
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It’s data that lives for an extended period of
time
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G/L accounts
Customer (A/R) ledger
Vendor (A/P) ledger
Financial Transaction Data
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It’s short lived data that archived or removed
after a period of time
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Of course, we might archive to our DW or not
archive it at all
G/L transactions
Payments
Cash transactions
G/L Account Types (1)
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They mimic accounting account types
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Assets
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Liabilities
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At various levels of liquidity
At various levels of liquidity
Equity (retained earnings)
G/L Account Types (2)
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P & L accounts
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Revenues
Expenses
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SAP predefines comment expense categories
Contain a pointer to a “special” retained
earnings account so that the P & L accounts can
be closed to retained earnings
Reconciliation Accounts
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Recon accounts (payables and receivables)
Each sub-ledger is tied to a G/L reconciliation
account
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Both the sub-ledger and G/L account are always
synchronized
G/L Master Records
(Contents)
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Applicable COA
Company code
Account number and name
Account type
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Balance sheet or P & L
Account group
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Account groups must be created before G/L
accounts can be created
Account Groups
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They configure the behavior of G/L accounts
 G/L accounts belonging to the same account
groups work similarly
We typically create account groups for
 Balance sheet accounts
 P/L accounts
 Recon accounts
The account groups already exist for the simulation
Use account groups to define the numeric range of
accounts
Configuring G/L
Account Groups (1)
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Select G/L Account group and click Field
Status
Field Status groups are used by account
groups and many other configurable SAP
screens
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They are used to configure whether a screen or
field is hidden / optional / required /
Configuring G/L
Account Groups (2)
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Account Groups or organized into sub groups
Configuring G/L
Account Groups (3)
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And finally, select the optional and required
fields
G/L Account Currency
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The currency used to record GL transactions
Only balances in local crcy if set, forces
accounts to be cleared in the local currency
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GR / IR accounts for example
Tax Categories
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Think of taxes as one of two types
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Input tax is used for tax paid on purchases
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Output tax is charged to customers on sales
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Input for production, for example
Usually paid to vendors or the govt.
Charted to customers by us and then paid to the
government
Look at transaction code FTXP
Tax Categories (Illustration)
Open Item Accounting (1)
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“Open Item” accounts are those that require
clearing
All accounting systems and ERP systems
support it
An OPEN ITEM is a contractual or scheduled commitment that is
not yet reflected in Financial Accounting but will lead to actual
expenditures / receipts in the future, e.g. a purchase order that
is not shipped in full will list those unshipped items as open
items within the shipping invoice
Open Item Accounting (2)
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Bank accounts are typically not cleared
Salary / Payroll accounts are cleared
GR / IR accounts are cleared
Vendor and customer accounts are
automatically cleared (Open Item
Management is enabled
The GR/IR Account
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Example: Clearing accounts such as the
Goods Receipt/Invoice Receipt (GR/IR)
account
When goods are received for a purchase
order, a credit is created in the GR/IR account
to show that an invoice must be received
When the invoice is received, a debit entry is
created to clear the goods receipt entry
You can only archive documents if all line
items are cleared
Line Item Display
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If this item is selected, then all debit and
credit detail for the account is available
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When posting items to such accounts and
displaying line items, additional storage space and
system time are required
Line item display should not be used for
reconciliation accounts, accounts that have a
summation function and are analyzed by
another application, such as the accounts
"Revenue" and "Stock“ and input and output
tax accounts
Sort Keys
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Necessary when Line Item display is selected
Determines the field that will be used to sort
the line items, for example:
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Posting date
Document date
Cost center
G/L Accounts Individual vs.
Collective Processing
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Individual processing applies changes to a
single (G/L) account
Collective processing applies changes to a
range of accounts