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Business Blue Print:

LS SAP
Finance General Ledger
/14/2013

Business Blue Print: LS SAP


Finance General Ledger

Document Information
Document ID

297734833

Related Workshops
Last Edited Date
Created By

Isuru Ranadheera

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Name

Role

Departme
nt

Date

Signature

Document History
Version
Number
1.0

Reason

Author

Date

Isuru
Ranadheera

Project Identification
Project Name
Load Star As is Study
Customer Name
Camoplast Solideal GIT
Project Sponsor
Ruwanthi Fernando
Business Process Owner

Module Name
Finance General Ledger

Planned Start Date


01.01.2013
Project
Manager

Internal
Chinthaka Palliyahguru
Consultant - Internal

Project Type
Internal
Planned Finish Date
30.04.2013
Project
Manager
External
Consultant - External

File Name

297734833

Business Blue Print: LS SAP


Finance General Ledger

Module Name
Finance General Ledger

File Name

297734833

Business Blue Print: LS SAP


Finance General Ledger

Table of Contents
Abbreviations......................................................................................................... 3
1

Introduction..................................................................................................... 4
1.1 General Ledger Transaction Processing.....................................................4
1.2

General Ledger Period End Closing........................................................4

Process Integration.......................................................................................... 4

Assumptions.................................................................................................... 5

Business Model................................................................................................ 5
4.1

4.1.1.

Process Description............................................................................. 5

4.1.2.

Process flow Diagram..........................................................................6

4.2

Document Update/Reversal Process..........................................................6

4.2.1

Process Description............................................................................. 6

4.2.2

Business Process Diagram..................................................................7

4.3

Document Parking/Posting/Reversal (Journal Entry)..................................5

Period End Activities.................................................................................. 8

4.3.1

Maintain Exchange Rate.....................................................................8

4.3.2

Accrual/Deferral Posting......................................................................9

4.3.3

GL Account Clearing Process.............................................................10

4.3.4

Payroll Upload/Salary Processing......................................................11

4.3.5

Recurring Entry Process....................................................................12

4.3.6

Foreign Currency Valuation (LC1/LC2)...............................................14

4.3.7

Period End Closing............................................................................15

Functionality Gaps......................................................................................... 16
5.1.

Organizational Impact............................................................................. 16

Authorizations and User Roles.......................................................................17

Other Developments..................................................................................... 17

7.1.

Reports.................................................................................................... 17

7.2.

Interfaces................................................................................................ 17

7.3.

Forms...................................................................................................... 17

Training needs analysis................................................................................. 18

Annex 1- Document Types................................................................................... 18


Module Name
Finance General Ledger

File Name

297734833

Business Blue Print: LS SAP


Finance General Ledger
Annex 11 Posting Keys...................................................................................... 20

Abbreviations

Module Name
Finance General Ledger

File Name

297734833

Business Blue Print: LS SAP


Finance General Ledger

1 Introduction
1.1 General Ledger Transaction Processing
The central task of G/L accounting is to provide a comprehensive picture of
external accounting and accounts. Recording all 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.
The SAP FI General Ledger Accountant has the following features:

Choice between group level and company level

Automatic and simultaneous posting of all sub ledger items in the


appropriate general ledger accounts (reconciliation accounts)
Simultaneous updating of the parallel general ledgers and of the cost
accounting areas
Real-time evaluation of and reporting on current posting data, in the form
of account displays, financial statements with different balance sheet
versions, and additional analyses.

In this way, General Ledger Accounting automatically serves as a complete


record of all business transactions. It is the central and up-to-date component for
reporting. It is the central and up-to-date component for reporting.

1.2 General Ledger Period End Closing


Period End Closing in General Ledger relates to closing accounting entries and
processes in the General Ledger. Typically after normal business transactions
have been posted during the month the ledger will be closed so that monthly,
quarterly and annual financial reports can be generated.
Closing the General Ledger in Loadstar includes normal account posting
transactions including accruals and deferrals, posting of recurring journals as well
as processes including opening the new period for the next month accounting
transactions, closing the previous month.
SAP GL will support and enhance all current transactions and processes,
introduce new ones as well as provide validation and control tools to monitor and
manage the process.

Module Name
Finance General Ledger

File Name

297734833

Business Blue Print: LS SAP


Finance General Ledger
Period End Closing in SAP also places the ownership of the Process in the hands
of the Finance department. Closing is now a Business process rather than a
technical process.

2 Process Integration
The SAP General Ledger closely integrated with all SAP Modules. Refer the Other
module Business Blue Print for more information.

3 Assumptions
N/A

4 Business Model
4.1 Document Parking/Posting/Reversal (Journal Entry)
4.1.1.Process Description
Accounting transactions such as month end adjustments to GL, direct posting to
expenses A/Cs,
etc would be entered to the system by Accounts Team as a park document. Use
transaction codes FV50 to enter the document. Initially the document would be
parked by the FI team and later on it would be posted after verification by Chief
Account.
The GL document contain following information;
- Document type and number ranges
-

GL account as per Chart of accounts and company code

Posting key to identify DR/CR

Cost centre/Profit centre assignment

Text/reference fields for any additional assignment

When parking documents, the respective user must also make sure that, if
desired, the parked documents are completed in order to turn them into proper
Financial Accounting posting for the posting deadline.
Parked documents do not update the GL account balances. If any error identified
from the parked documents can be changed.
The below information can be changed in a parked document;
- GL Account
-

Amount

Date

Module Name
Finance General Ledger

File Name

297734833

Business Blue Print: LS SAP


Finance General Ledger
-

Tax code

Account Assignment (e.g. cost centre, internal order)

Text

Parked documents which are no longer required should be deleted to provide a


better overview. On review and approval of the parked documents, the
authorized person will post the documents using T-Code FBV0. Any direct
posting to GL accounts would be clearly identified through document types SA
and AB with number range 100000000 - 109999999.
Document parking option is not mandatory in SAP, but it can be used for internal
control purposes at the time of journal entry postings. Use SAP standard reports
to view parked documents lists for a given period and after reviewing the parked
documents so that GL is updated.
Note: all parked documents should be posted on the relevant posting period.
Alternatively posting can be directly carried out (subject to authorization) using
Tcode: FB50

4.1.2.Process flow Diagram

Module Name
Finance General Ledger

File Name

297734833

Business Blue Print: LS SAP


Finance General Ledger

4.2 Document Update/Reversal Process


4.2.1 Process Description
Document Update
Once you posted FI document in SAP system allow changing the limited fields
(Text, Assignment, and payment terms). The amount, accounts, tax codes, tax
amounts cannot be changed instead the document need to be reversed. Using TCode: FB02 to user can change filed like text, payment terms, reference in the
single document number.
Document Reversal
If user posted FI document with wrong data it must be reversed and re-enter in
to the system. Document reversal can be done using the standard SAP where
need to mention the individual document number or a range of documents which
needs to be reversed. Transaction Code FB08 will be used for reversal and need
to mention the reversal reason and the reversal period in addition to the
document number. System facilitate to view the original document before doing
the reversal and reversal document number will get updated on the previous
document header level.
Below reversal reason already configured in standard SAP.

If the document which has to be reversed is already cleared, then user will use
Reset and Reverse process. This process is used for reversing the cleared open
items into open items. These open items would then be available for clearing
next time. Use the T Code FBRA.
A separate document type is to be maintained for all the reversals. A list of all
the documents with this document type should enable to view all the reversals in
one go.
4.2.2 Business Process Diagram

Module Name
Finance General Ledger

File Name

297734833

Business Blue Print: LS SAP


Finance General Ledger

Module Name
Finance General Ledger

File Name

297734833

Business Blue Print: LS SAP


Finance General Ledger

4.3 Period End Activities


4.3.1 Maintain Exchange Rate
4.3.1.1
Process Description
At the time of foreign currency entry postings system facilitate to convert the
entire foreign currency amount in to local currency (LKR) using available rate in
the system. All finance posting refer the default exchange rate type M which is
maintain in client level and all the company code in SAP will refer the rates which
are maintain under exchange rate type M. SAP system facilitates to maintain
exchange rate in client level with respective dates and currency.
As well system converts the entire foreign currency amount to group currency
(USD) using latest exchange rate available in SAP. Currently we are maintaining
USD crosses rates in SAP to capture group currency conversion for Loadstar and
these rates will be applicable for group currency conversion in other companies
as well.
4.3.1.2

Process Flow Diagram

Module Name
Finance General Ledger

File Name

297734833

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Business Blue Print: LS SAP


Finance General Ledger

4.3.2 Accrual/Deferral Posting


4.3.2.1

Process Description

This Process divides with below business scenarios


- Accrual of Expenses
- Accrual of Revenue
- Deferral of Expense
- Deferral of Revenue
An accrual of an expense refers to the reporting of an expense and the related
liability in the period in which they occur, and that period is prior to the period in
which the payment is made. An example of an accrual for an expense is the
electricity that is used in December, but the payment will not be made until
January.
An accrual of revenues refers to the reporting of revenues and the related
receivables in the period in which they are earned, and that period is prior to the
period of the cash receipt. An example of the accrual of revenues is the interest
earned in December on an investment in a government bond, but the interest
will not be received until January.
A deferral of an expense refers to a payment that was made in one period, but
will be reported as an expense in a later period. An example is the payment in
December for the six-month insurance premium that will be reported as an
expense in the months of January through June.
A deferral of revenues refers to receipts in one accounting period, but they will
be earned in future accounting periods. For example, the insurance company has
a cash receipt in December for a six-month insurance premium. However, the
insurance company will report this as part of its revenues in January through
June.
4.3.2.2
Process Flow Diagram
Please refer document Parking/Posting Process

Module Name
Finance General Ledger

File Name

297734833

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Business Blue Print: LS SAP


Finance General Ledger

4.3.3 GL Account Clearing Process


4.3.3.1
Process Description
Open items need to be cleared for a transaction to be completed. A transaction is
cleared when a clearing posting has been carried out for an item or group of
items, so that the resulting balance of the items is zero. The clearing transaction
always creates a clearing document.
Following options are available;
1. Account Clearing: The account clearing function can be performed
manually or automatically by using the automatic clearing program. The
account clearing function works for any account managed with open items
in the General Ledger and in Sub-Ledger.
Note: System configure to capture zero balance by assignment field value
during the automatic clearing process.
2. Post with Clearing: For the post with clearing option clearing document
amount should be entered with the selection on the open items that are to
be posted. If the total amount of selected open items does not equal the
amount of the clearing document, the system allows you to post the
difference.
User can use below SAP transaction code for clearing
- F-03: GL accounts manual clearing
-

F-51: Post with clearing

F.13 : Automatic clearing

Authorised Users can access Open item GL Accounts and assign and clear debits
and credits. The user will use the Account Clear transaction; select the items to
be assigned to each other and then post. The system will record the clearing
information (document numbers, date) on the original document.
The clearing date can be the current date or a date that you enter manually. The
clearing document number is the number of the most recent document involved
in the clearing transaction.
The following are examples of situations where you would carry out clearing
manually:
- For bank subaccounts and clearing accounts
Module Name
Finance General Ledger

File Name

297734833

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Business Blue Print: LS SAP


Finance General Ledger
-

Where you have agreed a debit memo procedure

If your vendor is making a refund

4.3.3.2

Process Flow Diagram

Module Name
Finance General Ledger

File Name

297734833

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Business Blue Print: LS SAP


Finance General Ledger
4.3.4 Payroll Upload/Salary Processing
4.3.4.1
Process Description
The payroll of Loadstar is processing through the External System, and system is
also using to maintain employee related details, appointments, compensations
etc. This process will be continued as it is and only the cost centre wise payroll
information will be uploaded to SAP through an excel file using ZFI upload
program

4.3.4.2

Process Flow Diagram

Module Name
Finance General Ledger

File Name

297734833

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Business Blue Print: LS SAP


Finance General Ledger
4.3.5 Recurring Entry Process
4.3.5.1
Process Description
This functionality supports postings that can periodically be created on a regular
basis. Recurring entries are similar to standing orders with banks for debiting
rent, contribution payments, or loan repayments directly. The postings are done
by the recurring entry program on basis of the recurring entry documents.
The following data of a recurring entry document remain unchanged:
- Posting key
- Account
- Amounts
Listed Transaction refer during the recurring entry posting process
- FBD1: To create a Recurring entry document
-

FBD2: Change a Recurring document

FBD3: Display Recurring document

F.56: Delete the recurring entry document

F.14: Executing a recurring document

F.15: Displaying the list of recurring documents

F.81: Reverse Recurring Entry

During this process creation of journal entries would occur at the beginning of
the fiscal year by FBD1 indicating the first run date, last run date, next run
date(which gets automatically updated from the system itself after running the
recurring documents), intervals in month, run date, run schedule etc. User has to
reverse the already posted entries during the following month using F.81.

4.3.5.2

Process Flow Diagram

Module Name
Finance General Ledger

File Name

297734833

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Business Blue Print: LS SAP


Finance General Ledger

4.3.6 Foreign Currency Valuation (LC1/LC2)


4.3.6.1
Process Description
A foreign currency valuation is necessary if assets and liabilities are
(vendor/customer/GL account) contain open items in a foreign currency. The
amounts of these open items were translated into the local currency (LC1) &
Group Currency (LC2) at the time they were entered using the current exchange
rate. The exchange rate at the time of closing would be different.
The total difference of all the open account items is posted to a balance sheet
adjustment account, thereby retaining the original account balance. The gains or
losses from exchange rate fluctuations from the valuation are entered as
Module Name
Finance General Ledger

File Name

297734833

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Business Blue Print: LS SAP


Finance General Ledger
offsetting entries in separate expense and revenue accounts for exchange rate
differences.
Foreign currency postings in the system are represented in the financial
statements with current date valuation. Two types of documents are posted:
1. 'Reporting' period document(s) to represent 'revaluation'.
2. 'Next' period documents to 'reverse' the first posting(s).
The system generates a Foreign Currency Valuation report showing the details of
what accounts, by document, were 'revaluated'. The document data includes
Amount in FC, Amount in loc. cur., Exch.rate (original), Exch.rate (new), Posting
Date and New Difference.
The Gain/Loss Unrealized Foreign Currency Revaluation account gets debits and
credits based on gain/loss determination. The Adjustment accounts for AR and/or
AP (Domestic, Foreign and/or Intercompany) get the 'off-set' amount posted to
Gain/Loss account.
We are going to maintaining valuation & realization GL for sub/Ledger accounts
which you are using for foreign currency posting.
During the foreign currency valuation system generate 02 entries as below:
1. Valuation entry: Posting date will be end date of the valuated period
2. Reverse entry: Posting date will be1st date of next period

4.3.6.2

Process Diagram

Module Name
Finance General Ledger

File Name

297734833

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Business Blue Print: LS SAP


Finance General Ledger

4.3.7 Period End Closing


4.3.7.1
Process Description
The closing operations component helps the company to prepare and carry out
the activities required for day-end, month-end, and year-end closing. For this
purpose, the system provides a series of standard reports that they can use to
generate evaluations and analyses directly from all of the posted account
balance.
To carry out the closing operations in G/L accounting, company first must
perform the closing operations in the sub ledger accounting such as,

Accounts receivable and accounts payable accounting

Inventory accounting

Asset accounting
These will be covered separately in respective BPP documentations.

Module Name
Finance General Ledger

File Name

297734833

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Business Blue Print: LS SAP


Finance General Ledger
4.3.7.2
N/A

Process Flow Diagram

5 Functionality Gaps
5.1. Organizational Impact
Day-End Activities
BP_159: Gaps in Document Number Assignment
Checklist to find gaps in the document number assignment across several
ledgers. T-Code- S_ALR_87012342 Must be used to find out, if there are any
gaps in document number lists. Currently this is not done at Loadstar.

BP_159: Invoice Numbers Allocated Twice


Checklist of documents assigned more than once. Can be checked with T-Code
S_ALR_87012341.
Checklist, if there are double invoice numbers.
BP_159: Display the compact document journal
Checklist of the most important data from the posted documents. T-CodeS_ALR_87012289. Totals sheets, which indicate the debit / credit totals for each
account type will be captured.

Month-End Activities
BP_159: Gaps in Document Number Assignment
Checklist to find gaps in the document number assignment across several
ledgers. T-Code- S_ALR_87012342 Must be used to find out, if there are any
gaps in document number lists. Currently this is not done at Loadstar.
Year-End Activities
BP_159: Balance Confirmation Receivable and Payable
You can use balance confirmations to check that receivables and payables vis-vis your business partners are correct. There may be discrepancies that have to
be clarified with the business partner, or individual value adjustments that have
to be posted.

Module Name
Finance General Ledger

File Name

297734833

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Business Blue Print: LS SAP


Finance General Ledger
When you confirm balances, notify your business partner of the individual
amounts he/she is to confirm. Ask for a confirmation, irrespective of whether any
discrepancies exist or not
T-Codes- F.17 and F.18

6 Authorizations and User Roles


N/A

7 Other Developments
7.1. Reports
7.2. Interfaces
7.3. Forms

Module Name
Finance General Ledger

File Name

297734833

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Business Blue Print: LS SAP


Finance General Ledger

8 Training needs analysis


N/A

Annex 1- Document Types

Type
AA
AB
AF
AN
CH
DA
DB
DG
DR
DS
DX
DY
DZ
EU
EX
KA
KG
KN
KP
KR
KW
KX
KY
KZ
LD
ML
PR
RA
RB
RE

Description
Asset posting
Accounting document
Dep. postings
Net asset posting
Contract settlement
Customer document
Customer document
Customer credit memo
Customer invoice
Cut .Suspence alloca
Cut . Intra Allocati
Cut . Inter Allocati
Customer payment
Euro rounding diff.
External number
Vendor document
Vendor credit memo
Net vendors
Account maintenance
Vendor invoice
LC payment
DP payment
DA payment
Vendor payment
Legacy Document
ML settlement
Price change
Sub.cred.memo stlmt
Exchange Difference
Invoice - gross

Module Name
Finance General Ledger

File Name

297734833

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Business Blue Print: LS SAP


Finance General Ledger
RN
RV
RX
RY
SA
SB
SK
SU
UE
WA
WE
WI
WL
WN
Z1
Z2
ZA
ZC
ZE
ZF
ZG
ZH
ZJ
ZK
ZL
ZM
ZN
ZP
ZQ
ZR
ZT
ZU
ZV
ZW
ZX
ZY
ZZ

Invoice - net
Billing doc.transfer
Welfare Issues
Rev: Welfare issues
G/L account document
G/L account posting
Cash document
Adjustment document
Data transfer
Goods issue
Goods receipt
Inventory document
Goods issue/delivery
Net goods receipt
Korea Bank Payment
Korea Bank Rec
AWD Petty Cash
KCP Petty Cash
Ekala Petty cash
FRD Petty Cash
MTC Petty cash
OTD Petty Cash
Regent's court Cas
Kottugoda Petty cash
Training center csh
Midigama petty Cash
Drafts AND Payorders
Cheque Payments
EFT Payments
Bank reconciliation
TT Payments
Kuruwita Petty cash
Payment clearing
KYOTO Petty cash
JIP Petty Cash
CMP Petty cash
Cyntex Petty cash

Module Name
Finance General Ledger

File Name

297734833

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Business Blue Print: LS SAP


Finance General Ledger

Annex 11 Posting Keys


Account Types
A

Assets

Customers

Vendors

Material

G/L accounts

Credit/Debit Indicator
H

Credit

Debit

P
K

D/
C

Acc
Type

0
1 S

2 S
3 S
4 S

D
D
D

5 S

6
7
8
9
0
A
0
B
0

S
S
S
S

D
D
D
D

S
S

D
D

Description of
Key
Act assignment
model
Invoice
Reverse credit
memo
Bank charges
Other receivables
Outgoing
payment
Payment
difference
Other clearing
Payment clearing
Special G/L debit
CH Bill.doc. Deb
CH
Cancel.Cred.mem
oD
CH Clearing Deb

Module Name
Finance General Ledger

File Name

297734833

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Business Blue Print: LS SAP


Finance General Ledger
C
0
X
0
Y
0
Z
1
1
1
2
1
3
1
4
1
5
1
6
1
7
1
8
1
9
1
A
1
B
1
C
1
X
1
Y
1
Z
2
1
2
2
2
4
2
5
2
6
2

CH Clearing Cred
CH Credit memo
Cred
CH
Cancel.BillDocDeb

Credit memo

Reverse invoice

Reverse charges

Other payables
Incoming
payment
Payment
difference

Other clearing

Payment clearing

Special G/L credit


CH
Cancel.Bill.docDe
CH Credit memo
Deb
CH Credit memo
Deb

CH Clearing Cred
CH
Cancel.Cr.memo
C

CH Bill.doc. Cred

Credit memo

Reverse invoice

S
S

K
K

Other receivables
Outgoing
payment
Payment
difference
Clearing

Module Name
Finance General Ledger

File Name

297734833

24

Business Blue Print: LS SAP


Finance General Ledger
7
2
8
2
9
3
1
3
2
3
4
3
5
3
6
3
7
3
8
3
9
4
0
5
0
7
0
7
5
8
0
8
1
8
3
8
4
8
5
8
6
8
9
9
0
9
1
9
3

Payment clearing

Special G/L debit

Invoice
Reverse credit
memo

Other payables
Incoming
payment
Payment
difference

Other clearing

Payment clearing

Special G/L credit

Debit entry

Credit entry

Debit asset

Credit asset

Stock initial entry

Costs

Price difference

Consumption

Change in stock

GR/IR debit
Stock inwrd
movement

Stock initial entry

Costs

Price difference

Module Name
Finance General Ledger

File Name

297734833

25

Business Blue Print: LS SAP


Finance General Ledger
9
4
9
5
9
6
9
9

Consumption

Change in stock

GR/IR credit
Stock outwd
movement

Module Name
Finance General Ledger

File Name

297734833

26