Maximizing SAP General Ledger (H3099)

Description

This indispensable reference book provides implementation teams, functional and technical teams, and end-users with a roadmap for the maximum utilization of SAP General Ledger. It focuses on using SAP General Ledger in real-world situations, details how to customize and optimize it for specific business processes, and shows you how to integrate it effectively with other SAP components.

SAP General Ledger Master Data

Learn how Master Data is structured in SAP General Ledger, including reconciliation accounts, balance sheet, profit and loss accounts, and the retained earnings account.

SAP General Ledger Integration

Get practical advice on integrating SAP General Ledger with Materials Management, Sales and Distribution, Logistics, and others.

Real-time Financial Accounting and Controlling Integration

Understand the tight integration between Financial Accounting and Controlling at the reconciliation ledger level.

Subledgers

Master the nuances of integrating the various subledgers with SAP General Ledger.

Planning with the SAP General Ledger

Discover how you can use SAP General Ledger to perform planning activities, stand-alone or in concert with other tools.

CONTENTS:

... Acknowledgments ... 17

... Preface ... 19

PART I ... Introduction to SAP General Ledger ... 23

1 ... General Ledger Accounting: An Introduction ... 25

1.1 ... Accounting Standards ... 26

1.1.1 ... Trends in Accounting Standards ... 26

1.1.2 ... U.S. GAAP ... 28

1.1.3 ... International Financial Reporting Standards (IFRS) ... 29

1.1.4 ... Comparing IFRS and U.S. GAAP ... 29

1.1.5 ... Technological Challenges of Moving from GAAP to IFRS ... 30

1.2 ... SAP General Ledger Evolution ... 35

1.2.1 ... Classic General Ledger ... 36

1.2.2 ... Special Purpose Ledger ... 37

1.2.3 ... SAP General Ledger ... 39

1.2.4 ... Comparison of SAP General Ledger and Special Purpose Ledger ... 43

1.3 ... Reporting Structure in SAP General Ledger ... 45

1.3.1 ... Data Structure ... 45

1.3.2 ... New SAP Tables ... 47

1.3.3 ... Reporting Considerations ... 47

1.3.4 ... Sizing and Performance Considerations ... 49

1.4 ... Summary ... 49

2 ... Parallel Accounting ... 51

2.1 ... Implementation Options in SAP General Ledger ... 52

2.1.1 ... Parallel Ledgers ... 55

2.1.2 ... Parallel Accounts ... 57

2.1.3 ... Parallel Special Purpose Ledgers ... 59

2.1.4 ... Parallel Company Codes ... 63

2.1.5 ... Comparison Summary ... 64

2.2 ... Parallel Accounting in SAP ERP Components ... 65

2.2.1 ... Financial Accounting ... 65

2.2.2 ... Asset Accounting ... 71

2.3 ... Key Concepts for the Ledger Approach ... 74

2.3.1 ... Leading Ledger ... 74

2.3.2 ... Non-Leading Ledger ... 75

2.3.3 ... Ledger Group ... 75

2.3.4 ... Representative Ledger ... 75

2.3.5 ... Ledger Selection ... 77

2.4 ... Customizing Settings: Ledger and Parallel Accounting ... 77

2.4.1 ... Defining Ledgers for General Ledger Accounting ... 78

2.4.2 ... Defining Currencies for the Leading Ledger ... 78

2.4.3 ... Defining and Activating Non-Leading Ledgers ... 80

2.4.4 ... Assigning Scenarios and Customer Fields to Ledgers ... 81

2.4.5 ... Activating Cost of Sales Accounting ... 82

2.4.6 ... Defining Ledger Groups ... 83

2.4.7 ... Defining and Assigning Accounting Principles ... 83

2.5 ... Summary ... 84

3 ... General Ledger Account Master Data ... 85

3.1 ... Structure and Environment of the General Ledger Account Master Record ... 86

3.1.1 ... Structure ... 86

3.1.2 ... Environment ... 87

3.2 ... Master Data at the Chart of Accounts Level ... 88

3.2.1 ... Setup ... 88

3.2.2 ... Cost Accounting ... 91

3.2.3 ... Master Record ... 92

3.3 ... General Ledger Account Master Data Customization ... 94

3.3.1 ... Number Intervals ... 95

3.3.2 ... Screen Layout ... 96

3.4 ... General Ledger Account Master Data in Company Code ... 97

3.4.1 ... Control Data ... 97

3.4.2 ... Create/Bank/Interest Tab ... 104

3.5 ... Retained Earnings Account ... 107

3.6 ... Editing General Ledger Account Master Records ... 109

3.6.1 ... Central versus Decentralized Organization ... 110

3.6.2 ... Changes to Chart of Accounts ... 111

3.6.3 ... Changes to Company Code Area ... 111

3.6.4 ... Blocking a General Ledger Master Record ... 111

3.6.5 ... Marking a General Ledger Master Record for Deletion ... 112

3.7 ... Process Flow for Maintaining a General Ledger Master Record ... 113

3.7.1 ... Process Flow for Creating a General Ledger Master Record ... 113

3.7.2 ... Service-Oriented Architecture (SOA) Components for Financial Accounting Master Data Management ... 114

3.8 ... Summary ... 115

4 ... General Ledger Accounting Documents ... 117

4.1 ... Document Lifecycle ... 118

4.1.1 ... Data Entry to Posting ... 119

4.1.2 ... Posting to Change ... 121

4.1.3 ... Posting to Archiving ... 122

4.1.4 ... Business Process Flow for Documents ... 123

4.2 ... Special Documents ... 125

4.2.1 ... Sample Documents ... 126

4.2.2 ... Recurring Documents ... 126

4.3 ... Document Views ... 127

4.3.1 ... Entry View ... 127

4.3.2 ... General Ledger View ... 127

4.4 ... Document Structure ... 128

4.4.1 ... Header ... 128

4.4.2 ... Line Item ... 130

4.5 ... Customization Settings for Documents ... 130

4.5.1 ... Document Type ... 131

4.5.2 ... Document Numbering ... 134

4.6 ... Summary ... 138

PART II ... Integration with Other SAP Components ... 139

5 ... General Ledger Integration with Order-to-Cash and Procure-to-Pay Scenarios ... 141

5.1 ... Business Process Flow ... 142

5.1.1 ... Order-to-Cash ... 142

5.1.2 ... Procure-to-Pay ... 144

5.1.3 ... Effect on SAP General Ledger ... 146

5.2 ... Order-to-Cash Scenarios ... 146

5.2.1 ... Sales of Non-Stock Items with Order-Specific Procurement ... 147

5.2.2 ... Sales Processing Using a Third Party with Shipping Notification ... 148

5.2.3 ... Sales Order Processing with Customer Down Payment ... 149

5.2.4 ... Cross-Company Sales Order Processing ... 150

5.2.5 ... Free-of-Charge Delivery ... 152

5.2.6 ... Customer Consignment Process ... 152

5.3 ... Procure-to-Pay Scenarios ... 154

5.3.1 ... Procurement Contract ... 155

5.3.2 ... Subcontracting ... 156

5.3.3 ... Procurement and Consumption of Consigned Inventory ... 157

5.3.4 ... Common SAP Terms Related to Procure-to-Pay Scenarios ... 158

5.4 ... SAP General Ledger Customization Settings for Order-to-Cash ... 160

5.4.1 ... Prepare Revenue Account Determination ... 161

5.4.2 ... Perform Document Summarization for Sales and Distribution ... 163

5.5 ... SAP General Ledger Customization Settings for Procure-to-Pay ... 164

5.5.1 ... Define Accounts for Materials Management ... 164

5.5.2 ... Perform Document Summarization for Materials Management ... 167

5.6 ... Summary ... 168

6 ... SAP General Ledger, Business Processes, and Logistics Execution ... 169

6.1 ... Business Process Flows ... 170

6.1.1 ... Time to Market ... 170

6.1.2 ... Forecast to Stock ... 173

6.1.3 ... Service Management ... 175

6.2 ... Transportation Processes ... 177

6.2.1 ... Transportation Process Flow ... 177

6.2.2 ... Key Concepts ... 178

6.2.3 ... Inbound Shipments ... 183

6.2.4 ... Outbound Shipments ... 184

6.3 ... Integrating Transportation Processes with SAP General Ledger: Customization Settings ... 185

6.3.1 ... Shipment Cost Document ... 187

6.3.2 ... Settlement ... 190

6.4 ... Summary ... 191

7 ... Integration of Financial Subledgers with SAP General Ledger ... 193

7.1 ... Financial Subledgers: Business Processes ... 194

7.1.1 ... Accounts Payable ... 195

7.1.2 ... Accounts Receivable ... 196

7.1.3 ... Asset Accounting ... 199

7.1.4 ... Cash Management and Bank Accounting ... 201

7.1.5 ... Lease Accounting ... 203

7.2 ... Financial Subledgers: Configuration Settings ... 205

7.2.1 ... Accounts Payable and Accounts Receivable ... 206

7.2.2 ... Cash Management and Bank Accounting ... 210

7.2.3 ... Asset Accounting ... 214

7.2.4 ... Lease Accounting ... 217

7.3 ... Summary ... 219

8 ... Real-Time Integration of Financial Accounting and Controlling ... 221

8.1 ... Introduction to Controlling ... 224

8.1.1 ... Cost Center Planning ... 224

8.1.2 ... Core Concepts in Controlling ... 225

8.2 ... Setting Up Financial Accounting for Integration with Controlling ... 227

8.2.1 ... Cost Element ... 228

8.2.2 ... Default Account Assignments ... 228

8.3 ... Setting Up Controlling for Integration with Financial Accounting ... 231

8.3.1 ... Reconciliation Ledger ... 231

8.3.2 ... Real-Time Integration ... 233

8.4 ... Summary ... 239

9 ... Integration of SAP General Ledger with SAP ERP Human Capital Management ... 241

9.1 ... Introduction to SAP ERP HCM ... 242

9.1.1 ... SAP ERP HCM Business Processes ... 242

9.1.2 ... SAP ERP HCM Solution Overview ... 244

9.1.3 ... Shared Services ... 246

9.2 ... Integration of SAP ERP HCM with SAP ERP Financials ... 249

9.2.1 ... Integrated Process Flow ... 249

9.2.2 ... Key Organizational Entities ... 250

9.3 ... Time Management and Payroll Processes ... 252

9.3.1 ... Time Management ... 252

9.3.2 ... Payroll Process ... 253

9.4 ... Payroll Accounting ... 255

9.4.1 ... Payroll Calculation Schema ... 255

9.4.2 ... Payroll Accounting Area ... 256

9.4.3 ... Interface Implementation Scenarios ... 256

9.4.4 ... Payroll Configuration Settings for Integration with SAP ERP Financial Accounting ... 258

9.5 ... Summary ... 259

10 ... Integration of SAP General Ledger with SAP Travel Management ... 261

10.1 ... Introduction to Travel Management ... 262

10.1.1 ... SAP Travel Management Process Flow ... 263

10.1.2 ... SAP Travel Management User Interface ... 264

10.2 ... SAP Travel Management Integration ... 268

10.2.1 ... Integration Process Flow ... 269

10.2.2 ... Implementation Scenarios: Infrastructure ... 269

10.3 ... Configuration Settings for Integration with Financial Accounting ... 272

10.3.1 ... Assignment of Wage Type to Symbolic Account ... 273

10.3.2 ... Conversion of Symbolic Account to Expense Account ... 275

10.4 ... Summary ... 277

PART III ... Maximizing Effectiveness of SAP General Ledger Business Processes ... 279

11 ... Business Transactions in SAP General Ledger ... 281

11.1 ... Posting Documents ... 282

11.1.1 ... Enjoy Posting Document Structure ... 282

11.1.2 ... Posting Documents ... 284

11.1.3 ... Posting Documents to One Ledger Group ... 289

11.1.4 ... Posting Documents with Reference ... 290

11.1.5 ... Customizing the User Interface for Posting Documents ... 292

11.2 ... Processing Open Items ... 294

11.2.1 ... Automatic Selection and Clearing ... 295

11.2.2 ... Manual Selection of Open Items for Clearing ... 300

11.3 ... Business Transaction Customization Settings ... 303

11.3.1 ... G/L Account Posting - Enjoy ... 303

11.3.2 ... Prepare Cross-Company Code Transactions ... 306

11.3.3 ... Open Item Clearing ... 307

11.4 ... Summary ... 312

12 ... Profit Center Accounting and Segment Reporting Using SAP General Ledger ... 313

12.1 ... Implementation Options ... 314

12.2 ... Profit Center Accounting ... 317

12.2.1 ... Assignment of Profit Centers ... 317

12.2.2 ... Differences Between Profit Center Accounting, Profitability Analysis, and the Special Purpose Ledger ... 318

12.3 ... Segment Reporting ... 320

12.3.1 ... Accounting Standards ... 321

12.3.2 ... Segment Reporting Processes ... 321

12.4 ... Master Data for Profit Center Accounting and Segment Reporting ... 322

12.4.1 ... Segment ... 323

12.4.2 ... Profit Center ... 327

12.4.3 ... Cost Center ... 331

12.4.4 ... Derivation of Master Data During Postings ... 332

12.5 ... Summary ... 333

13 ... Document Splitting ... 335

13.1 ... Introduction to Document Splitting ... 336

13.1.1 ... Document Splitting Process ... 338

13.1.2 ... Document Splitting Advantages ... 342

13.2 ... Implementation Options ... 343

13.2.1 ... Migrating to SAP General Ledger ... 344

13.2.2 ... Scenario 6: Implementing Document Splitting after SAP General Ledger Is Implemented ... 347

13.3 ... Basic Document Splitting Configuration ... 348

13.3.1 ... Classify G/L Accounts for Document Splitting ... 351

13.3.2 ... Classify Document Types for Document Splitting ... 352

13.3.3 ... Define Zero Balance Clearing Account ... 354

13.3.4 ... Define Document Splitting Characteristics for General Ledger Accounting ... 355

13.3.5 ... Define Document Splitting Characteristics for Controlling ... 356

13.3.6 ... Edit Constants for Nonassigned Processes ... 357

13.3.7 ... Define Post-Capitalization of Cash Discount to Assets ... 358

13.3.8 ... Activate Document Splitting ... 358

13.4 ... Extended Document Splitting Configuration ... 360

13.4.1 ... Define Document Splitting Method ... 360

13.4.2 ... Define Document Splitting Rule ... 361

13.4.3 ... Assign Document Splitting Method ... 368

13.4.4 ... Define Business Transaction Variants ... 369

13.5 ... Summary ... 370

14 ... Cost of Sales Accounting ... 373

14.1 ... Introduction to Cost of Sales Accounting ... 374

14.1.1 ... Business Process Flow ... 374

14.1.2 ... Configuration Settings for Cost of Sales Accounting ... 379

14.2 ... Managing Functional Areas ... 382

14.2.1 ... Assignment of Functional Area Rules ... 383

14.2.2 ... Deriving Functional Areas ... 384

14.2.3 ... Functional Area Substitution and Enhancement ... 386

14.2.4 ... Functional Area Integration with Asset Accounting ... 389

14.2.5 ... Functional Area Integration with Cost Center Accounting ... 391

14.2.6 ... Changing Functional Area Rules ... 392

14.2.7 ... Message Control: Add Message (Warning) ... 392

14.3 ... Summary ... 393

PART IV ... Period-End Processes in SAP General Ledger ... 395

15 ... Revenue Recognition ... 397

15.1 ... Revenue Recognition Requirements ... 398

15.2 ... SAP ERP Approach to Revenue Recognition ... 400

15.3 ... Sales and Distribution Revenue Recognition ... 404

15.3.1 ... Revenue Recognition Types ... 407

15.3.2 ... Business Events for Revenue Recognition: Proof of Delivery ... 412

15.3.3 ... Revenue Recognition Transaction Codes ... 415

15.3.4 ... Data Changes that Affect Revenue Recognition ... 417

15.4 ... Business Process Scenarios: High Tech Industry (Software) ... 418

15.4.1 ... Sale of Software Bundle ... 418

15.4.2 ... Perpetual Software License Sales and Maintenance ... 420

15.4.3 ... Subscription-Based Software License Sales ... 421

15.4.4 ... Sale of Education and Training Services ... 421

15.4.5 ... Software Maintenance and Support Renewal ... 422

15.5 ... Technical Settings for Revenue Recognition ... 424

15.5.1 ... General Ledger Master Data ... 425

15.5.2 ... Sales and Distribution Item Categories and Their Settings ... 426

15.5.3 ... Revenue Recognition Type on Item Category Level ... 427

15.5.4 ... Account Determination ... 428

15.6 ... SAP Recommendations and Constraints of Revenue Recognition ... 428

15.6.1 ... SAP Recommendations ... 428

15.6.2 ... Constraints ... 430

15.7 ... Summary ... 431

16 ... Financial Statements ... 433

16.1 ... Financial Statement Reports ... 434

16.1.1 ... Standard Financial Statements Reports ... 434

16.1.2 ... Drill-Down Financial Statement Reports ... 438

16.1.3 ... SAP NetWeaver BW Financial Statement Reports ... 442

16.2 ... Configuring Financial Statements ... 444

16.2.1 ... Defining Financial Statement Versions ... 444

16.2.2 ... Creating Financial Statement Versions According to Cost of Sales Accounting ... 448

16.3 ... Summary ... 450

17 ... Period-End Processes ... 451

17.1 ... Period-End Processes by Business Functions ... 451

17.1.1 ... Period - End Closing Activities for Financial Accounting ... 453

17.1.2 ... Period-End Closing for the "General" Plant ... 457

17.1.3 ... Period-End Closing for Service Orders ... 458

17.1.4 ... Period-End Closing for Sales and Distribution ... 459

17.1.5 ... Period-End Closing for Closing Projects ... 461

17.1.6 ... Period-End Closing for Inventory Valuation ... 462

17.1.7 ... Conclusion ... 463

17.2 ... SAP General Ledger Period-End Transactions ... 478

17.2.1 ... Check/Count ... 480

17.2.2 ... Valuate ... 482

17.2.3 ... Reclassify ... 492

17.2.4 ... Rollup ... 495

17.2.5 ... Allocations ... 496

17.2.6 ... Carry-Forward ... 498

17.3 ... Summary ... 501

... Appendices ... 503

A ... Reporting, Closing Cockpit, and Authorizations ... 503

A.1 ... Reporting ... 503

A.2 ... Closing Cockpit ... 510

A.3 ... Authorizations in SAP General Ledger ... 518

B ... Glossary and SAP Abbreviations ... 525

C ... The Author ... 529

... Index ... 531