Financial Accounting
(General Ledger) Course
Integrated FMS
March to April, 2001
Introduction
• Audience
– Financial accounting personnel responsible for
executing general accounting transactions in
SAP R/3
• Duration: 8 hours
Expectations Sharing
• At the end of the training workshop, I expect to
learn…
• I expect the training workshop to…
• To ensure the success of the training
workshop, you can expect me to…
• I expect my co-participants to...
Course Overview
• Course Objectives
• Course Content
Course Objectives
At the conclusion of this course, you will be able to:
• Describe the Journal Entry & Reporting (JER)
business process
• Maintain the General Ledger master data
• Create and display financial transactions
• Process period end transactions
• Generate trial balance and financial reports
Course Content
Introduction
JER Business Process Overview
•
•
•
•
•
GL Master Data
Capture Financial Transactions
Period-end Processing
Bank Reconciliation
Financial Reports
Lesson 1
Lesson 2
Lesson 3A
Lesson 3B
Lesson 4
Summary
Houserules
• Do not turn your manuals to pages in advance of the session.
• Feel free to share your opinions, ideas, questions or
comments.
• Let us keep the atmosphere positive and affirming.
• Your participation is essential to the success of the workshop.
Be present for the entire duration of the course.
• Let’s try to avoid going in and out of the room in the middle of
a session.
• Please put your pagers and cellphones on silent mode during
the session.
Roles & Responsibilities
 Maintain GL Master Data in the system
 Inform appropriate units regarding changes in master data
 Create configuration rationale for configuration requirements to be
encoded by Systems and Methods
 Review manual journal adjustment requests
 Ensure proper upload/download of data via system interfaces
 Ensure proper execution of accrual and deferral documents
 Generate required GL reports (e.g., accounts balances breakdown)
 Post manual journal entries and adjustments (including treasury
transactions)
 Set up and execute accrual and deferral entries
Roles & Responsibilities
 Perform period end activities (reconciliation, forex valuation of
dollar cash & investment accounts, review clearing & “others”
accounts)
 Ensure that all open items (customer and vendor accounts) in $
are revalued accordingly
 Generate Trial Balance and check for abnormal balances
 Analyze expenses (corporate only)
 Review and analyze Balance Sheet accounts
 Prepare various major journal entries (income tax, equity share,
capitalized interest, etc.)
JER Business Process Overview
Contents:
•
•
•
•
Maintain GL Master Data
Capture Financial Transactions
Period End Processing
Financial Reporting
JER Business Process
Maintain
GL Master Data
(Chart of
Accounts)
Capture/Process
Financial
Transactions
(Daily Processing)
Month-end/
Year-end
Process
Financial
Reporting
JER Business Process:
Maintain GL Master Data
General Accounting
User makes
requests
GL Maintenance
Request Form
(Lotus Notes)
Validate
Request
Maintain GL
Master
(Chart of
Accounts)
Maintain
secondary
cost
elements
Maintain
Financial
Statement
Versions
Maintain GL Master Data:
What’s New?
• Single Chart of Accounts for ABS-CBN parent
and subsidiaries
• Consistent definition of G/L accounts
• Separation of external & internal reporting
• Centralized maintenance of G/L Master Data
What’s New?
Chart of Accounts
1 A SSET S
Cash
1.1 C ur r ent A sset s
• Each bank account will be a GL account
1.1.1 CASH AND CASH EQUIVALENTS
since there is no subsidiary ledger for Cash
1.1.2 SHORT-TERM INVESTM ENTS
1.1.3 ACCOUNTS RECEIVABLE - TRADE
• Each bank will have a clearing account to
1.1.4 ACCOUNTS RECEIVABLE - NON-TRADE
facilitate bank reconciliation
1.1.5 ADVANCES TO OFFICERS AND EM PLOYEES
Accounts Receivable
1.1.6 ADVANCES TO FROM CO-PRODUCERS AND PARTNERS
1.1.7 M ATERIALS AND SUPPLIES INVENTORY
• One GL account with the details found in
1.1.8 PROGRAM RIGHTS
the Customer database
1.1.9 WORK-IN-PROCESS INVENTORY
Material Supplies & Inventory
1.1.10 PREPAID EXPENSES
1.1.11 OTHER CURRENT ASSETS
• Details will be shown in the Material Master
1.2 N o n- C ur r ent A sset s
database
1.2.1 DUE TO/FROM SUBSIDIARIES
• Stationery & office supplies will be outright
1.2.2 DUE TO/FROM AFFILIATED COM PANIES
expensed upon purchase
1.2.3 LONG-TERM INVESTM ENTS
1.2.4 PROPERTY AND EQUIPM ENT
Payroll Information
1.2.5 ACCUM ULATED DEPRECIATION
• Employees will be set up as vendors to
1.2.6 OTHER FIXED ASSETS
keep track of advances.
1.2.7 APPRAISAL INCREASE
1.3 Ot her A sset s
1.3.1 OTHER ASSETS AND DEFERRED CHARGES
• Employee payroll details will be available in
the Payroll System. Text fields will be used
to derive subtotals for items within an
account.
What’s New?
Chart of Accounts
1 A SSET S
Fixed Assets
1.1 C ur r ent A sset s
• One GL account per asset category with
1.1.1 CASH AND CASH EQUIVALENTS
1.1.2 SHORT-TERM INVESTM ENTS
the details found in the Asset database
1.1.3 ACCOUNTS RECEIVABLE - TRADE
Project in Progress
1.1.4 ACCOUNTS RECEIVABLE - NON-TRADE
1.1.5 ADVANCES TO OFFICERS AND EM PLOYEES
• One Project in Progress account only with
1.1.6 ADVANCES TO FROM CO-PRODUCERS AND PARTNERS
the details for each type of project in
1.1.7 M ATERIALS AND SUPPLIES INVENTORY
progress found in the Asset database.
1.1.8 PROGRAM RIGHTS
1.1.9 WORK-IN-PROCESS INVENTORY
1.1.10 PREPAID EXPENSES
1.1.11 OTHER CURRENT ASSETS
1.2 N o n- C ur r ent A sset s
1.2.1 DUE TO/FROM SUBSIDIARIES
1.2.2 DUE TO/FROM AFFILIATED COM PANIES
1.2.3 LONG-TERM INVESTM ENTS
1.2.4 PROPERTY AND EQUIPM ENT
1.2.5 ACCUM ULATED DEPRECIATION
1.2.6 OTHER FIXED ASSETS
1.2.7 APPRAISAL INCREASE
1.3 Ot her A sset s
1.3.1 OTHER ASSETS AND DEFERRED CHARGES
What’s New?
Chart of Accounts
2 LIA B ILIT IES
2.1 C ur r ent Liab ilit ies
2.1.1 SHORT-TERM LOANS
2.1.2 CURRENT PORTION OF LONG-TERM DEBT
2.1.3 ACCOUNTS PAYABLE - TRADE
2.1.4 ACCOUNTS PAYABLE - NON-TRADE
2.1.5 ACCRUED EXPENSES
2.1.6 ACCEPTANCES PAYABLE
2.1.7 INCOM E AND OTHER TAXES PAYABLE
2.1.8 DIVIDENDS PAYABLE
2.1.9 DUE TO FILM SUPPLIERS - CURRENT PORTION
2.1.10 OTHER CURRENT LIABILITIES
2.2 N o n- C ur r ent Liab ilit ies
2.2.1 DUE TO/FROM SUBSIDIARIES
2.2.2 DUE TO/FROM AFFILIATED COM PANIES
2.2.3 DUE TO FILM SUPPLIERS - NON CURRENT PORTION
2.2.4 LONG-TERM LIABILITIES
2.2.5 DEFERRED CREDITS
2.3 M ino r it y Int er est
2.3.1 M INORITY INTEREST
Accounts Payable
• One GL account with details found in
Vendor database.
Due to/from Subs and Affiliates
• No separate due to and due from
accounts
• Use of contra accounts to manually
reclass intercompany receivables or
payables. This is temporary until all
subsidiaries are in SAP.
What’s New?
Chart of Accounts
3 ST OC KHOLD ER S' EQU IT Y
3.1 C ap it al St o ck
3.1.1 COM M ON STOCK
3.1.2 PREFERRED STOCK
3.1.3 DEPOSITS ON FUTURE SUBSCRIPTIONS
3.1.4 PAID-IN CAPITAL IN EXCESS OF PAR
3.2 Eq uit y T r anslat io n
3.2.1 EQUITY TRANSLATION
3.3 Shar e in Eq uit y A d just ment f r o m T r anslat io n
3.3.1 SHARE IN EQUITY ADJUSTM ENT FROM TRANSLATION
3.4 R evaluat io n Incr ement in Pr o p er t y
3.4.1 REVALUATION INCREM ENT IN PROPERTY
3.5 R et ained Ear ning s
3.5.1 RETAINED EARNINGS - UNAPPROPRIATED
3.5.2 RETAINED EARNINGS - APPROPRIATED
3.6 T r easur y St o ck
3.6.1 TREASURY STOCK
What’s New?
Chart of Accounts
4 R EV EN U E
4.1 A ir t ime R evenue
4.1.1 AIRTIM E REVENUE
4.2 M o vie/ T heat r ical R evenue
4.2.1 M OVIE / THEATRICAL REVENUE
4.2.2 ANCILLIARY (LICENSE) RIGHTS
4.3 T eleco m R evenue
4.3.1 TELECOM REVENUE
4.4 C ab le Op er at io ns R evenue
4.4.1 CABLE OPERATIONS REVENUE
4.5 Sub scr ip t io n R evenue
4.5.1 SUBSCRIPTION REVENUE
4.6 Po st - p r o d uct io n R evenue
4.6.1 POST-PRODUCTION SERVICE REVENUE
4.7 M er chand ising R evenue
4.7.1 M ERCHANDISING REVENUE
4.8 Set C o nst r uct io n R evenue
4.8.1 SET CONSTRUCTION REVENUE
4.9 Pub licat io n R evenue
4.9.1 PUBLICATION REVENUE
4.10 Games and A musement R evenue
4.10.1 GAM ES AND AM USEM ENT REVENUE
4.11 Ser vice R evenue
4.11.1 SERVICE REVENUE
Airtime Revenue
• Use a single GL account
• Details will be handled in the
subsidiary ledger.
Other Revenue
• Grouping is based on Line of
Business rather than company to
provide for flexibility
What’s New?
Chart of Accounts
6 C OST OF SA LES A N D SER V IC ES
6.1 C o st o f Sales and Ser vices
6.1.1 COST OF SALES AND SERVICES
Expenses
• Distinction between what is production
cost and what is general admin &
expenses
• 6-series will be used for production
cost, chargeable to Internal Orders
• 7-series will be used for GAEX
6.2 Pr o d uct io n C o st s
6.2.1 TALENT FEES
6.2.2 LINE PRODUCTION COSTS
6.2.3 AM ORTIZATION OF FILM RIGHTS
6.2.4 WIRE SERVICES
6.2.5 NEWS SERVICE FEES
6.2.6 SET REQUIREM ENTS
6.2.7 EQUIPM ENT, FACILITIES AND M ANPOWER CHARGES
6.2.8 PRIZES
6.2.9 CATERING AND FOOD EXPENSES
6.2.10 SATELLITE CHARGES
6.2.11 DUBBING CHARGES
6.2.12 TRANSPORTATION AND TRAVEL
6.2.13 OTHER PROGRAM EXPENSES
What’s New?
Chart of Accounts
7 OPER A T IN G EX PEN SES
7.1 Salar ies and Emp lo yee B enef it s
7.1.1 SALARIES AND EM PLOYEE BENEFITS
7.2 Gener al and A d minist r at ive Exp enses
7.2.1 DEPRECIATION AND AM ORTIZATION
7.2.2 RENT AND UTILITIES EXPENSE
7.2.3 COM M UNICATION EXPENSE
7.2.4 SUPPLIES EXPENSE
7.2.5 PRINTING AND REPRODUCTION EXPENSE
7.2.6 DUES AND SUBSCRIPTIONS
7.2.7 ADVERTISING AND PROM OTIONS
7.2.8 REPAIRS AND M AINTENANCE
7.2.9 REPRESENTATION & ENTERTAINM ENT
7.2.10 TRAINING , SEM INARS, WORKSHOPS, AND CONFERENCES
7.2.11 TRANSPORTATION AND TRAVEL - LOCAL
7.2.12 TRANSPORTATION AND TRAVEL - FOREIGN
7.2.13 LEGAL AND PROFESSIONAL FEES
7.2.14 RESEARCH AND SURVEY EXPENSE
7.2.15 INSURANCE
7.2.16 FREIGHT AND DELIVERY EXPENSES
7.2.17 SERVICE FEES
What’s New?
Chart of Accounts
8 OT HER IN C OM E ( EX PEN SES)
8.1 Int er est Inco me
8.1.1 INTEREST INCOM E
8.2 Eq uit y in N et Ear ning s ( Lo sses) o f Invest ees
8.2.1 EQUITY IN NET EARNINGS (LOSSES) OF INVESTEES
8.3 M iscellaneo us Inco me / Ot her Exp enses
8.3.1 M ISCELLANEOUS INCOM E / OTHER EXPENSES
8.4 Int er est and B ank C har g es
8.4.1 INTEREST AND BANK CHARGES
9 PR OV ISION F OR IN C OM E T A X / M IN OR IT Y IN T ER EST
9.1 Pr o visio n f o r Inco me T ax
9.1.1 PROVISION FOR INCOM E TAX
9.2 M inority Interest
9.2.1 M INORITY INTEREST
JER Business Process:
Capture Financial Transactions
Sources of transactions:
• Manual journal entries/adjustments
• Automatic postings from other SAP modules
• Interfaces with legacy systems
Manual
Journal Entry
SD, MM,
Asset,
FI (AP, AR)
SAP-FI-GL
SAP-FI-CO
Interface
Capture Financial Transactions:
Manual Journal Entry
Requestors
Generate request
using Journal
Adjustment
Request Form
No
Unit Head
Review journal
adjustment request
Submit
Request?
Yes
Financial
Reporting
Manager
No
Review submitted
journal adjustment
request
Approve
Request?
Yes
General
Accounting
Staff
Encode journal
Adjustment in the
system
Capture Financial Transactions:
SAP-FI Sub-modules
SAP-FI Master Data & Sub-modules . . .
MM
FI-AP
Vendors
Banks
SD
FI-Bank
FI -GL
Customers
Assets
FI-AR
FI-FA
GL
Accounts
Capture Financial Transactions:
Interfaces with Legacy Systems
PCR
Talent Fee
Payroll
•Talent Fee
Payments per
episode
•Employee
Salary
Payments
aggregate per
cost center
Budget
•Advances against
salaries
•Advances against
car loans
•Employee loan
payments
•Sale of cars to
employees
Aired
Programs
SAP
SD,MM,
AM,FI
Invoiced
Programs
TFO
Total Production
Cost (tracked by
TFO)
ITS
Aired
Programs
Amortization
Film rights cost
Dubbing Charges
FRMS
All legacy systems will download master data (GL Accounts, Cost Centers, Internal Orders) from FI-CO
Capture Financial Transactions:
What’s New?
• Capture of transactions at source
• Automated postings from SD, MM and Asset
• Reconciled GL/SL for A/R, A/P and Asset
accounts
• Distributed ownership of sub-ledgers
• Elimination of manual approval for recurring
transactions
Capture Financial Transactions:
What’s New?
• Automatic posting of intercompany transactions
(once SAP is implemented in subsidiaries)
• Use of text to capture transaction details instead
of maintaining schedules
• Upload of journal entry line items from legacy
systems to FI-GL
JER Business Process:
Period-end Processing
Bank Recon. (SAP)
Interface Recon. (Manual)
Accrual/
Deferral
of Expenses
Generate
Trial
Balance/
Schedules
Foreign
Currency
Valuation
Reconciliation
of GL-SL
balances
+ Bank Recon.
Consolidate &
Generate
Consolidated
Financial
Statements
Open /Close
Posting
Period
Manual
until subsidiaries
implement SAP
All other period-end activities will be processed via SAP.
Manual
Review Clearing
Accounts
CarryForward
Balances
Period-end Processing:
What’s New?
Accruals
• Expense Accruals
Accrual/
Deferral
of Expenses
Reconciliation
Operating
Foreign Expenses
Review Clearing
of GL-SL
– Currency
Accruals will be based on actual prior period
Accounts
balances
expenditures
Valuation
+ Bank Recon.
– Accruals are automatically reversed the following
period to minimize double entry of expenses
– A/P will post all expense accruals except for
Consolidate &
interest expense
Generate
Generate
Open /Close
Trial
– General
Accounting will post accruals
of interest
Consolidated
Posting
Balance/
expense
Financial
Period
Schedules
Statements
Employee
Related Expenses
– Accruals will be based on budget
– Accruals will be manually reversed once actual
payout occurs
• Revenue Accruals
– A/R will post revenue accruals (via system
interface)
CarryForward
Balances
Period-end Processing:
What’s New?
Deferrals
Accrual/
Deferral
of Expenses
• Prepaid Expenses
Reconciliation
Foreign
of be
GL-SL
– Currency
All prepaid expenses will
set up by A/P Review Clearing
Accounts
balances
except for prepaid bonus
Valuation
+ Bank Recon.
– General Accounting will set up recurring entry
document for prepaid bonus
– General Accounting will run all amortization of
Consolidate
prepaid
expenses &
Generate
Generate
Open /Close
Trial • Pre-production Expense
Consolidated
Posting
Balance/ – The system will reclassify program fund
Financial
Period
Schedules
amount
for
liquidated
but
unaired
episodes to
Statements
pre-production expense account
– This will automatically be reversed the next
period
CarryForward
Balances
Period-end Processing:
What’s New?
Foreign Exchange Valuation
Accrual/
Deferral
of Expenses
Generate
Trial
Balance/
Schedules
Reconciliation
• Capability
of maintaining balance in foreign
Review Clearing
of
GL-SL
currency
Accounts
balances
• Monthly valuation vs. Annual valuation
+ Bank Recon.
• Items to valuate:
– Foreign Currency Accounts (Bank)
Consolidate &– Open Items in foreign currency (Customer,
Vendor)Open /Close
Generate
Carry• Customer andPosting
Vendor open item valuation
Consolidated
Forwardwill be
and A/P respectively
Financial conducted by A/R
Period
Balances
Statements
• Auto-reversal of unrealized foreign exchange
gain or loss the next period
Foreign
Currency
Valuation
Period-end Processing:
What’s New?
Reconciliation of GL/SL
• No need to reconcile GL and SL balances of
AR, AP and Asset.
Reconciliation
• Data from
legacy systems (Payroll
& FRMS)
Accrual/
Foreign
Review Clearing
of GL-SL
need to be
periodically reconciled
with GL.
Deferral
Currency
Accounts
balances
of Expenses
Valuation
• Inter-company
accounts will still
be analyzed
+ Bank Recon.
and reconciled.
Bank Reconciliation
• Automated Electronic Bank Statement
upload &
Consolidate
Generate
(Multicash and SWIFT
MT940 formats)Generate
for
Open /Close
Carrymajor banks (initiallyTrial
4 banks) and Manual
Consolidated
Posting
Forward
Balance/
Bank Statement entry
for the rest of banks
Financial
Period
Balances
Schedules
• Automatic generation of accounting entries
Statements
• Facility for clearing open items from the
respective bank clearing account
• Facility for matching open item individually
with post-processing function
• Facility for displaying and printing bank
statement (for electronic only)
• Facility for automatic clearing open items in
cash on hand and bank clearing accounts.
Period-end Processing:
What’s New?
Accrual/
Deferral
of Expenses
Generate
Trial
Balance/
Schedules
Foreign
Currency
Valuation
Reconciliation
of GL-SL
balances
+ Bank Recon.
Generate Trial Balance/Schedules
Consolidate &
• On-line viewing of trial balance
Generate
Open /Close
• Trial
balance can be generated
at
Consolidated
Posting
any Financial
time
Period
Statements
Review Clearing
Accounts
CarryForward
Balances
Period-end Processing:
What’s New?
Open/Close Posting Period
GL (S)
Customer (D) Vendor (K)
Material (M)
Asset (A)
Month-End
2 posting periods open
Reconciliation
Accrual/
Foreign
Current Period Current Period Closed (6:30pm)of GL-SL
Review Clearing
Deferral
Currency
Open
Accounts
balances
of
Expenses
Valuation
Year-End
Special
2 posting
periods open
+ Bank Recon.
periods open
2nd day of
Open
Closed (5pm)
Closed (5pm)
Closed (5pm)
Closed (5pm)
new month
Consolidate &
5th day of new Closed
Generate
Generate
Open /Close
Carrymonth
Trial
Consolidated
Posting
Forward
Balance/
Financial
Period
Balances
Schedules
Statements
JER Business Process:
Financial Reporting
Consolidate F/S
Generate
Company
Financial
Statements
Compute for
EBITDA
per subsidiary
Determine
and post
eliminating
entries
Calculate
equity share
of parent and
minority interest
Generate
Consolidated
F/S
Financial Reporting:
What’s New?
• Financial Reports can be generated or
viewed on-line at anytime
• Automated consolidation of subsidiary
financial statements (once subsidiaries
implement SAP)
Lesson 1: GL Master Data
Contents:
Concepts
Transactions
 Chart of Accounts
 Account Groups
 Field Status Groups
 GL Account Master
Record
 Reconciliation accounts
& sub-ledgers
 Master data elements
 GL Account (Create, Edit,
Block/Unblock, Mark for
Deletion)
 Primary Cost Element
 Secondary Cost Element
 Maintain Financial Statement
Version
Chart of Accounts
CHART OF ACCOUNTS
CLIENT
• The chart of accounts provides the
control framework to record financial
business transactions undertaken by an
organization. Each Company is
assigned to one chart of accounts.
ABS CHART
OF ACCOUNTS
• One chart of accounts may be assigned
to several company codes within the
same client.
• Establish a global/ central chart of
accounts with added specific statutory
accounts per country.
ABSCBN
1000
COMPANY
CODE 2000
COMPANY
CODE 3000
• You can use as many Chart of Accounts
as are required, however, data
maintenance effort increases with each
additional Chart of Accounts.
Flexibility for Change
• A Chart of Accounts can not be
removed after financial postings have
taken place.
• New accounts can be added at any
time.
Account Groups
GL Accounts
CASH AND CASH EQUIVALENTS
CASH ON HAND
REVOLVING FUND
ACCOUNTS RECEIVABLE - TRADE
ACCOUNTS RECEIVABLE - TRADE
MATERIALS AND SUPPLIES INVENTORY
MATERIALS AND SUPPLIES
INVENTORY
MATERIALS AND SUPPLIES INTRANSIT
MERCHANDISE INVENTORY ON
HAND
MERCHANDISE INVENTORY ON
CONSIGNMENT
PROPERTY AND EQUIPMENT
LAND
LAND IMPROVEMENTS
BUILDING
BUILDING IMPROVEMENTS
LEASEHOLD IMPROVEMENTS
VIDEO EQUIPMENT
AIRTIME REVENUE
AIRTIME REVENUE
GOVERNMENT REVENUE
TALENT FEES
TALENT FEES - PRODUCTION STAFF
TALENT FEES - ON-CAM (MAINSTAY)
Account Groups
Description
Account Groups
ZCSH
ZRCN
Cash Accounts
Recon Accounts
• Used to classify G/L
accounts
ZRCN
Recon Accounts
ZMAT
Materials Mgmt Accounts
• Typically broken down
by placement on
financial statements
ZGL
General G/L Accounts
ZMAT
Materials Mgmt Accounts
ZMAT
Materials Mgmt Accounts
ZAS
ZAS
ZAS
ZAS
ZAS
ZAS
Fixed Assets
Fixed Assets
Fixed Assets
Fixed Assets
Fixed Assets
Fixed Assets
ZPL
ZPL
Income Statement Accounts
Income Statement Accounts
ZPL
ZPL
Income Statement Accounts
Income Statement Accounts
• Every Chart of Accounts
must have at least one
account group defined
• Account groups are
assigned to field status
group (determines the
fields for data entry
screens)
Field Status Groups
Field Status Groups
• Defines how the data entry screen
will look like
• Shows which fields are required,
optional and suppressed
Optional
G001
Required
G013
GL Account Master Record
COA
Segment
Account No.: 101010130
Acct. Name: Bank of
America
B/S Account
P/L Account
Currency
GL Account Master Record
• Chart of Accounts Segment
– data that is common for all
company codes using the
COA
• Company Code Segment
Posting Control
Item Management
– data that is unique to a
specific company code
Co. Code
Segment
Reconciliation Account &
Sub-ledgers
Reconciliation Accounts
Subsidiary Ledger
Customer 1
1000
GL Account
Reconciliation Account
A/R Trade
1000
600
• A G/L account used to attach subledger accounts to the general
ledger
• The reconciliation account and
subsidiary ledger are updated in
parallel when posting a
transaction.
• Note:
– Line item details are kept in
the subsidiary ledger
Customer 2
– Summary information is kept
in the reconciliation account
600
– Reconciliation accounts
cannot be posted to directly
Total: 1,600
Total: 1,600
Master Data Elements
Balance Sheet Cost Element
GL Accounts

Balance Sheet
Accounts
These cost elements enable you to
control the costs of an order for AUC and
RMA (CAPEX)
Primary Cost Element
101010001 Cash on Hand
101030001 AR Trade
Cost Elements

The primary cost elements in cost
accounting are equivalent to expense
accounts in financial accounting

Primary cost elements are created
automatically when GL accounts are
created (except for assets)
Primary cost elements must always be
assigned to a cost object such as a cost
center or internal order
BS Cost Elements
102040001 Land
102040006 Video Equip
102040001
102040006
P&L Accounts
Primary Cost/
Revenue Elements

401010001 Airtime Rev.
602010001 Talent Fees
Secondary Cost Element
401010001 Airtime Rev.
602010001 Talent Fees
1:1
Only for CO allocations
Secondary Cost
Elements
DP1000000 Satellite
Charges Level 1

Are used for exclusively for internal cost
allocation only (exist on CO only)

Does not have a corresponding GL
account

Is not created automatically
Secondary Cost Elements
• AO - Allocated Overhead (for GAEX allocation)
• DP - Direct Production (for allocation to Programs)
• DO - Direct Overhead (for allocation to Programs)
Transactions
• FS00
Create/Change/Delete GL
Account/Block-Unblock
• KA01
Primary Cost Element
• KA06
Secondary Cost Element
• Maintain Financial Statement Version
Exercise
At the end of these exercises, you will be able to:
• Create, change and delete GL accounts and
cost elements
• Explain the difference between primary and
secondary cost elements
• Maintain Financial Statement Versions
Lesson 2: Capture Financial
Transactions
Contents:
Concepts
Transactions
 Document Principle
 The Accounting
Document
 Document Type
 Posting Keys
 Posting Dates
 Currencies
 Posting a Document
 Document Entry
 Reversing documents
 Reference documents
 Account Assignment Model
 General Postings
 Display or view transactions
 Sort by text field
Document Principle
Document Principle
Original document
SAP document
Invoice #700
Post
transaction
in SAP
Document No.:
10000000
Dr Expense XXX
Cr Payable XXX
• The system records at
least one document for
every business
transaction.
• Each document receives
a unique document
number.
• Document numbers will
be system generated.
• All related documents will
be linked to provide a
complete picture of any
business transaction.
The Accounting Document
Header
Line Items
Document Type
Customer
Payment
Ck. 2000
DR
Document Type
• Controls
Doc. No. 0000123456
Ref. No. 2000
Items: Customer, G/L
– Type of account that can be
posted to
– Number range assigned to
it
– Required document header
fields
Vendor
Invoice
No. 1000
KR
Doc. No. 1000234567
Ref. No. 1000
Items: Vendor, G/L
Original Documents
SAP Documents
• There are five different account
types:
–
–
–
–
–
D
K
S
A
M
Debitors (Customers)
Creditors (Vendors)
General Ledger
Assets
Materials
Document Type
•
•
•
•
•
•
•
SA - G/L Account Document
SB - G/L Account Posting
SC - G/L Interface Document
SD - G/L Accrual Document
SI - G/L Intercompany Transactions
SU - Adjustment Document
ZR - Bank Reconciliation
Postings Keys
Relevant Posting Keys
Debit Credit Description
40
70
21
01
50
75
31
11
GL postings (S)
Asset postings (A)
Vendor postings (K)
Customer postings (D)
Additional Details
Cost Center
Internal Order
Text Required
Posting Keys
• Specify the account type that is
valid for a line item
• Control whether a line item is a
debit or a credit
• Helps control the field status of
a line item
– Individual fields can be
suppressed, optional or
required depending on the
definition of the posting key
used on the line item.
Posting Date
Posting Dates
– Document Date: source document’s date
– Posting Date: update of transaction figures
– Translation Date: exchange rate date for postings
Currencies
Document Currency
• Currency in which the
transaction is posted
Local Currency
• The currency of the company
code is always updated.
Posting a Document
• Every line item must contain an account. This
may be a G/L account or a sub-ledger (S/L)
account.
• The Account Type of the posting key used
identifies whether the account will be a G/L or a
S/L.
31
VendorX
Postkey Account
Posting key 31 is
always a credit entry used
with vendor S/L accounts.
Transactions
FB50
FB08
FKMT
F-02
FBL3N
FB03
Document Entry
Reversing Documents
Reference Documents
Account Assignment Model
General Postings (G/L Fast Entry)
Display Document
Display GL Account Line Items
Sort by text field
Reversing
Documents
• A document can only be reversed if:
– The original document contains no cleared line items. If the
document contains cleared line items, then these items must be
reset prior to reversal.
– The original document contains only customer, vendor or G/L line
items.
– The original document was posted in the FI system. Documents
originating in other modules should be corrected there.
– All specified values (e.g., cost center) are still valid.
• If you do not specify a posting date for document reversal,
the system reverses the document using the original
posting date of the document to be reversed.
• A new document number is created for the reversal
document.
Reference
Documents
• Reference documents allows you to use a
previously (or frequently) posted document to
post a new one.
• Simply indicate the “Reference Document” at
the time of posting.
G/L Fast Entry
G/L Fast Entry
• G/L Fast Entry uses line item
templates which have only the
pre-defined fields available.
• Available via General Posting
feature
Account Assignment Model
• Includes the line items that will be defaulted
into the new document
• Can include the posted amount
• Postings in the account assignment model
need not be complete
• Additional line items can also be entered
manually during posting
Exercise
At the end of these exercises, you will be able to:
• Create journal entries using different posting
methods
• Sort by text field
• Display or view transactions
Lesson 3A: Period-end Processing
Contents:
Concepts
Transactions
 Periodic processing vs.
Period-end processing
 Accrual/Deferral
Transactions
 Posting Periods
 Foreign Currency
Valuation
 Balance Carry Forward
 Recurring Entries
 Accrual/Deferral Document
 Reversals
 Foreign Currency Valuation
 Open/Close Posting Periods
 Trial Balance
 Carry Forward Balances
Checklist
 Pre-closing
 Period Closing (Continued)
 Payroll Interface
 Reclassification of unearned to earned
interest on cash advance
 FRMS Interface
 Review Clearing Accounts
 Open/Close Posting Period
 Reconcile GL and SL (interface)
 Close accounting period (MKDA)
 Bank reconciliation
 Open new posting period for all

account types
 Open posting period 13-14 apart
from next year’s posting period (for
year-end)
Period Closing
 Clear GL account open items
 Amortize all prepaid expenses
 Set up pre-production expenses
 Check month-end exchange rate
 Forex Valuation






Run Financial Accounting Comparative
Analysis
Manual Reversal of accrual (if needed)
Offset clearing of Due to accounts
against Due from accounts
Reconcile Due to/from subs & affiliates
Compute income tax liability
Compute equity share from subsidiary
earnings / losses
Checklist
 Period Closing (Continued)


 Start-of-Period Activities
 Balance Carry Forward (Annual) and
Ensure that A/R and A/P execute
forex valuation for customer and
vendor open items
 Perform consolidation (manual until
all subsidiaries are in SAP)
 Extract Intercompany Revenue and
expenses for elimination
 Review Clearing Accounts
 Generate Trial Balance
Financial Reporting
 Income Statement (Parent &
Cons.)
 Balance Sheet (Parent & Cons.)
 Cash Flow (Parent & Cons.)
 Consolidated Changes in Equity


ensure that AR and AP execute
balance carry forward for customer
and vendor balances
Run G/L recurring entries
Check to ensure reversals (accruals,
pre-production expense) are posted
Periodic processing vs.
Period-end processing
• Periodic processing are transactions that need
to be executed on regular intervals (e.g.,
accruals or expenses and revenues,
amortization of prepaid expenses, etc.)
• However, not all periodic processing should be
done at period-end.
– Prepaid bonuses
– Amortization of prepaid expenses
Accrual/Deferral Transactions
• Use a Recurring Entry document feature when:
– the accrual doesn’t have to be reversed the
following month
– the accounts remain the same
– the amounts do not change from month to month
• Use Accrual/Deferral document feature when:
– the accounts remain the same but the amounts
change from month to month
– you need to auto-reverse the accruals in the
following month
Posting Periods
• There are12 regular posting periods plus 2 special
closing periods for other special adjustments
• Postings can be made to the posting period if it is open
• The posting period variant controls the opening and
closing of posting periods within SAP.
• Several company codes can be assigned the same
posting period variant to allow multiple companies to be
controlled together.
Foreign Currency Valuation
• Foreign Currency Valuation
– Every transaction is automatically captured in
two currencies
– User can display the transaction in any of the
currencies being stored
– Postings to exchange rate unrealized gain/loss
accounts are made automatically
Balance Carry Forward
• Balance Carry Forward (FB=Final Balance,
BCF=Balance Carried Forward)
Previous Fiscal Year
Balance Sheet Account
FB 120
P+L Account
FB 40
Customer/Vendor Acct
FB 100
B/S, customer
and vendor
accounts are
carried onto
themselves
New Fiscal Year
Balance Sheet Account
BCF 120
P+L Account
BCF 0
Customer/Vendor Acct
BCF 100
P+L Retained Earnings
P+L accounts carry
forward to 1 or more
R/E accounts
BCF 40
Balance Carry Forward is only done annually.
Periodic Processing:
Transactions
FBD1, F.14
FBS1
F.81
F.05
S_ALR_87003642
S_ALR_87012277
F.16
Recurring Entries
Accrual/Deferral Postings
Reversals
Foreign Currency Valuation
Open/Close Posting Periods
Trial Balance
Balance Carry Forward
Exercise
At the end of these exercises, you will be able to:
•
•
•
•
•
•
•
Create and run recurring entries
Create accrual/deferral documents
Run reverse postings of accruals/deferrals
Valuate accounts in foreign currency
Open/close posting periods
Generate trial balance
Carry forward balances
Lesson 3B: Bank Reconciliation
Contents:
Concepts
Transactions
 Flow of Bank
Transactions
 Bank Master Data
 Deposit Processing
 Manual Bank
Reconciliation
 Electronic Bank
Reconciliation
 G/L Automatic Clearing
 Display bank information
 Post & display manual bank
statement
 Post, process, and display
electronic bank statement
 Automatic clearing of open
line items
Flow of Bank Transactions
AP
- invoice
- post payment
TREASURY
BANKS
GENERAL
ACCTG.
AR
- cash receipts
- process deposits
- check printing
- bank debit/credit advice
- loan acquisition/payment
- money market placements
- “sweep” accounts
- accrued/ prepaid interest
- bank reconciliation
- analysis of “floating” items
- clearing of open items
Bank Master Data
Create
Bank key
Create
House
Bank
Create Bank
Account
(Account ID)
- keeps the bank and
branch information
- consists of 5
characters only
- keeps the bank account
information
- not specific to a
company code
- also keeps the bank
and branch
information
- includes the type of
account, the account
number, the G/L code
and the currency
- created for a specific
company code
- created by company
code and house bank
combination
Bank Master Data
Bank G/L Accounts
Bank Balance
101010++0
Deposit Clearing
101010++1
Payment Clearing
101010++2
Suspense Clearing
101010++3
Deposit Processing
Enter
deposit
details
Print
Deposit
slips
Post
deposit
transaction
Execute
batch
input
Deposit Processing
Deposit Transaction
Check deposit: 10,000 PHP
Customer (Subledger)
a) 10,000
Cash on Hand
a) 10,000
Deposit Clearing (101010++1)
b) 10,000
a) Receipt of check payment from customer
b) Process deposit to the bank
b) 10,000
Deposit Processing
Multiple Deposit Transaction
Check deposit: 10,000 PHP
Cash deposit : 5,000 PHP
Cash on Hand
Customer (subledger)
a) 10,000
a) 10,000
c) 10,000
b) 5,000
b) 5,000
c) 5,000
Deposit Clearing (101010++1)
c) 15,000
a) Receipt of check payment from customer
b) Receipt of cash payment from customer
c) Process deposit to the bank
Manual Bank Reconciliation
Enter manual
Bank
statement
details
Post
Bank
statement
Execute
batch input
Subledger
Documents
General
Ledger
Documents
Statement
Manual entry
Temporary
dataset
x
Manual Bank Reconciliation
INTERNAL
BANK
CODE
TRANS. CODE
BC
Pos ting
DESCRIPTION
DEBIT
CREDIT
rule
Z008
CHG
charges
CHARGES
BANK
SC
Service Charge
CHARGES
BANK
PC
Penalty Charge
CHARGES
BANK
CSD
cash deposit
BANK
DEP
CKD
Check Deposit
BANK
DEP
INT
INT
interest
BANK
INTEREST INCOME
Z012
LC
ILC
import letter of credit
PAYMENT
BANK
Z003
LC
letter of credit
PAYMENT
BANK
LOAN
LNS
loans
BANK
SUSP
MISC
MSC
miscellaneous
SUSP
BANK
MSC
other transactions
SUSP
BANK
SLS
loan transactions
PAYMENT
BANK
PMT
payments
PAYMENT
BANK
TT
TT
telegraphic transfer
PAYMENT
BANK
Z003
TX
WTX
Withholding tax
INTEREST INCOME
BANK
Z014
CSW
CSW
cash withdrawal
PAYMENT
BANK
Z003
CHK
DDA CHECK
CHECK ENCASHMENT
PAYMENT
BANK
Z003
CKP
Check Presentation
PAYMENT
BANK
ATA
TDR
Transfer Debit /Automatic transfer
SUSP
BANK
Z007
DRM
DM
Debit memo/ Payroll
SUSP
BANK
Z007
DEP
PAYT
Z001
Z007
Z003
Manual Bank Reconciliation
Payment/Unrecorded Transaction
Vendor (subledger)
Payment Clearing (101010nn02)
a) 10,000
c) 5,000
Suspense Clearing
c) 20,000
a) Payment to supplier
- 10,000 PHP
b) Unrecorded transaction
- 20,000 PHP (credit)
c) Perform manual bank reconciliation
a) 10,000
Bank Balance (101010nn0)
c) 20,000
c) 5,000
Manual Bank Reconciliation
Check deposit: 10,000 PHP
Cash deposit : 5,000 PHP
Customer (subledger)
a) 10,000
a) 10,000
c) 10,000
b) 5,000
b) 5,000
c) 5,000
Deposit Clearing (101010nn1)
c) 15,000
d) 15,000
a) Receipt of check payment from customer
b) Receipt of cash payment from customer
c) Process deposit to the bank
d) Perform manual bank reconciliation
Cash on Hand
Bank Balance (101010nn0)
d) 15,000
Manual Bank Reconciliation
- the date entered on the value
date field (bank transaction date)
will be automatically reflected in
the check encashment field
Manual Bank Reconciliation
Posting Rule & Account Determination
Posting rule
Z001
Z002
Z003
Z007
Z008
Z010
Z011
Z012
Z014
Z100
Text
Bank deposits
Reverse deposits
Outgoing check/transfer
Direct debit
Bank charges
Direct credit
Interest paid
Interest received
Tax
Cash/check deposits
Note:
Posting rules are used for account determination
(accounting entries) during bank statement upload/entry
Electronic Bank Reconciliation
Receive
Electronic
Bank statement
Multicash/
SWIFT?
No
Execute
conversion
program
Yes
Execute program
Import Bank
Statement to SAP
Execute
Post-process
transaction
Electronic Bank Reconciliation
Equitable-PCIB
BPI
Unionbank
Citibank
-
Multicash
Multicash
Multicash
SWIFT MT 940
Multicash Format
Each bank will provide two files:
• AUSZUG.TXT - contains the header
information in the bank statement
• UMSATZ.TXT - contains the line item
information in the bank statement
Electronic Bank Reconciliation
- format indicator whether
Multicash (M) or SWIFT (S)
- bank statement header and
line item text files
- select when importing data
from the bank reconciliation
folder
- advisable to select this since
you’ll be able to validate the line
items first before posting
- select to view the bank
statement uploaded for
validation purposes
G/L Automatic Clearing
2000000000-2099999999
- document range for bank
reconciliation postings
ZR - document type for bank
reconciliation postings
G/L Account Auto-Clearing
Open items in the bank
clearing accounts will be
cleared once automatic
clearing is executed
Transactions
FI03
FI04
FI12
S_P99_41000166
S_P00_07000008
FF67
FF_5
FEBP
FF_6
FEBA
F.13
Display a Bank Master Record
Display Changes in Bank Master Record
Generate List of House Banks
Display Bank Directory
Display of Bank Changes
Manual Bank Statement
Import Electronic Bank Statement
Post Electronic Bank Statement
Display Electronic Bank Statement
Postprocess Electronic Bank Statement
Automatic Clearing of Open Line Items
Lesson 4: Financial Reporting
Contents:
Concepts
Transactions
 Financial Statements
 Financial Statement
Version
 Analysis
 GL Account Balances
 GL Line Items
 Balance Sheet/Profit &Loss
 Cash Flow Statement
 Changes in Equity
 Due to/from affiliates and
subsidiaries
Financial Statements
• Financial Statements are created using the G/L
of a company code. The following financial
statements are standard reports in SAP:
– Balance Sheet
– Income (Profit & Loss) Statement
• Cash Flow Statement and Changes in Equity
are customized reports
Financial Statement Version
• When executing the Balance Sheet/P & L
Report and Cash Flow Statement, program
RFBILA00 will require you to specify a FS
Version. In this case, ABS-CBN FS Version
1000.
Analysis
• Discover and spot errors
• Make recommendations
• Formulate business decisions
Transactions
S_ALR_87012301
S_ALR_87012282
S_ALR_8701228/
S_ALR_87012249
S_ALR_87012332
GL Account Balances
GL Line Items
Income Statement
Balance Sheet
Cash Flow Statement
Due to/from affiliates and
subsidiaries
Exercise
At the end of these exercises, you will be able to:
• Generate GL account balances
• Generate GL account lists
• Generate financial reports
Summary
You are now able to:
• Describe the Journal Entry & Reporting
business process
• Maintain the General Ledger master data
• Create and display financial transactions
• Use transactions to perform period closing
activities
• Generate trial balance and financial reports
Congratulations!
• You have just completed the FI-GL Course.