FI Data Extraction(Including New GL)

FI Extraction:
FI Module deals with accounting and financial needs of an organization.
Financial Accounting is broken down into the following sub-modules:
Accounts Receivables
Accounts Payable
Asset Accounting
Bank Accounting
Consolidation
Funds Management
General Ledger
Special Purpose Ledger
Travel Management
Note: Only discussing key areas (AP/AR/GL/SL) briefly because of the complexity of the area
We can extract the financial data at totals level / line item level. Please Refer the
linkhttp://help.sap.com/saphelp_nw70/helpdata/en/af/16533bbb15b762e10000000a114084/f
rameset.htm
In general, we will use R/3 line item tables as the data source for extracting the data to allow
drill down capability from summarized data to line-item details.
Financial Accounting data can be extracted directly from the tables.
Depending on the business requirement we can use either FI-SL or standard BW content
extractors (FI-AR, FI-AP, and FI-GL) to fetch FI data.
Note: FI-SL will be discussed under "one stage stop to know all about BW Extractors
-Part2 "which explains about Application specific customer generated extractors
FI-AR, FI-AP, and FI-GL:
General Ledger: All accounting postings will be recorded in General Ledger. These postings are
real time to provide up-to-date visibility of the financial accounts.
Account Receivable: Accounts Receivables record all account postings generated as a result of
Customer sales activity. These postings are automatically updated in the General Ledger
Accounts Payable: Accounts Payables record all account postings generated as a result of
Vendor purchasing activity. Automatic postings are generated in the General Ledger as well.
Standard FI data sources:
0FI_GL_4 (G/L Accounts- line items)
Takes the data from the FI document tables (BKPF/BSEG) that are relevant to general ledger
accounting (compare table BSIS).
0FI_AP_4 (AP-line items) and 0FI_AR_4 (AR- line items
Selections are made from tables BSID/BSAD (Accounts Receivable) and BSIK/BSAK (Accounts
Payable)
With old G/L in R/3, the tables GLT0 (totals), BSEG, BKPF (Line Item) get filled in SAP BI
side you should have to use data model.
0FI_GL_1 --> 0FI_GL_1 --> 0FIGL_C01 (for Totals)
0FI_GL_4 --> 0FI_GL_4 --> 0FIGL_O02 (for Line item)

With New G/L in SAP ECC 6.0 onwards, the tables FAGLFLEXT (totals), FAGLFLEXA, BSEG, BKPF
(Line Item) get filled in BI side you have to use data model.
0FI_GL_10 --> 0FI_GL_10 --> 0FIGL_C10 (for Totals)
0FI_GL_14 --> 0FIGL_O14 (for Line item)
Functionally, this effects other financial modules like AP, AR, PCA (Profit Center Accounting)
for ex: while implementing new G/L in BI side, this fulfills most of profit center Accounting
requirements, and you do not have to implement PCA module separately.
When I was in FI implementation, there was no 0FI_GL_14 datasource...
We had existing 0FI_GL_1 & 0FI_GL_4 flows and we implemented new GL totals flow i.e.
0FI_GL_10...
FAGLFLEXT --> 0FI_GL_10 --> 0FIGL_O10 --> 0FIGL_C10.... new GL Totals implementation was
quite smooth, since this flow is completely different from old GL totals (GLT0 --> 0FI_GL_1 -->
0FIGL_C01).
We recreated existing (on 0FIGL_C01) queries on 0FIGL_C10 (&V10) and used jump targets
(RRI) to old line item (0FIGL_O02) wherever required...
You can go ahead with new GL lineitems (FAGLFLEXA & BSEG & BKPF) --> 0FI_GL_14 -->
0FIGL_O14 in parallel with existing old one (BSEG & BKPF) --> 0FI_GL_4 --> 0FIGL_O02.
How the data extraction happens?
In FI extraction 0FI_AR_4 and 0FI_AP_4 are linked with 0FI_GL_4 in order to maintain
consistent data transfer from OLTP system (it is called coupled data extraction, Ref OSS notes
428571).
Note: Uncoupled" extraction possible with Plug-In PI 2002.2, see OSS note 551044
0FI_GL_4 writes the entries into the time stamp table BWOM2_TIMEST in the SAP R/3 System
with a new upper limit for the time stamp selection.
And now, 0FI_AP_4 and 0FI_AR_4 will copy this new upper limit for the time stamp selection
during the next data extraction in the SAP R/3 System. This ensures the proper synchronization
of accounts payable and accounts receivable accounting with respect to G/L accounting.
Full load: Not a valid choice because of large volumes of detailed R/3 transaction data.
Delta load:
Note: Here the delta identification process works differently for new financial records and
for changed financial records.
New Financial accounting line items which are posted in SAP R/3 sytem will be identified by
the extractor using the time stamp in the document header (Table BKPF-(field) CPUDT).
By scheduling an initialization IP all the historical data can be loaded into BW from the
application tables and it also sets "X" indicator in field LAST_TS (Flag: 'X' = Last time stamp
interval of the delta extraction).That means after the last delta, initialization was done.

After this, daily delta loads can be carried out depending on timestamp by scheduling delta
info packages.
During the delta load , the SAP R/3 system logs two time stamps that delimit a selection
interval for a Data Source in table BWOM2_TIMEST(fields TS_LOW and TS_HIGH).

In case of changed FI documents, selections will be based on tables:

BWFI_AEDAT and (timestamp table) BWOM2_TIMEST (See OSS note 401646 for more details).
Delta extraction using delta queue method can also be possible incase if we want,
Serialization of the records
To distribute delta records to multiple BW systems.
FI -Delta Mode:

A time stamp on the line items serves to identify the status of the delta. Time stamp intervals
that have already been read are then stored in a time stamp table (BWOM2_TIMEST).
(Info object 0Recordmode plays vital role deciding delta's .Check the field "delta "in
ROOSOURCE /RODELTAM table to identify the image)
The Financial Accounting line items are extracted from the SAP R/3 system in their most
recent status (after-image delta method).
AIE: This delta method is not suitable for filling Info Cubes directly in the BW system. To start
with therefore, the line items must be loaded in the BW system in an ODS object that
identifies the changes made to individual characteristics and key figures within a delta data
record. Other data destinations (Info Cubes) can be provided with data from this ODS object.
It uses delta type E(pull) means the delta data records are determined during the delta update
by the data source extractor, updated to the delta queue and passed on to BI directly from
there.

January 10, 2013 by Pete 1 Comment

FIGURE 1 (NEW GENERAL LEDGER ACCOUNTING IN IMPLEMENTATION GUIDE)

The classic general Ledger contains all the financial transactions of a business. Besides using
the classic general Ledger, businesses make use of the Special Ledger and other components
like Profit Center Accounting (PCA) in order to meet statutory as well as internal
requirements. SAP Profit Center Accounting and the special Ledger reside in separate
applications. Therefore, these modules were not automatically reconciled with the classic
general Ledger. Due to this there was a need to perform additional closing activities in order
to reconcile these additional modules with the classic general Ledger.
The new general Ledger uses the same familiar interface as the classic general Ledger but
overcomes the difficulty encountered while carrying out the closing activities in the classic
general Ledger.

ADVANTAGES OF USING THE NEW SAP GENERAL LEDGER

The new general Ledger covers all the functions that were previously
implemented by the use of separate ledgers like the Costs of Sales Ledger,
Special Purpose Ledger, the Reconciliation Ledger or the Profit Centre
Ledger. Therefore, businesses need not maintain the separate ledgers in
separate applications. This makes the recording at Administration of
transactional data easier.

The user interface of the New General Ledger is similar to that of the
Classic General Ledger. Therefore users already familiar with the Classic
General Ledger require very little training in order to migrate to using the
new general Ledger.

The New General Ledger eliminates data redundancy by storing all the
transactional data in a single totals table. This improves the efficiency of
the database.

With the New General Ledger, there is no need to use separate ledgers like
the Special Purpose Ledger, Profit Center Ledger, etc. It eliminates the
need of Profit & Loss and Balance Sheet adjustments with online splitting
functionality. Due to this there is no need to carry out additional
reconciliation activities with other applications during closing. This helps in
saving a lot of time and effort on the part of the end user.

The use of the new General Ledger makes it easier to include additional
fields in order to provide flexible reporting as per the requirements of a
business.

Reconciliation ledgers postings are eliminated by the use of the New

General Ledger. In case of cross company code postings, the information
was initially stored in controlling and then transfer to the FI module at
period close. The controlling data was stored in the Reconciliation Ledger.
At the period end, this data was transferred from controlling to create FI
documents so that are reconciliation between controlling and FI was
carried out. The New General Ledger provides real-time reconciliation
between the controlling and FI modules.

The Total Cost of Operations for a business is reduced due to the

advantages provided by the New General Ledger.

CHARACTERISTICS OF THE NEW GENERAL LEDGER

The Classic General Ledger was primarily intended to provide a comprehensive mechanism
for external reporting purposes by recording all the transactions of a business. However, for
internal reporting purposes data needs to flow to the various controlling modules like Profit
Centre Accounting, Cost Element Accounting, etc. The linkage between the Classic General
Ledger and the controlling module was weak. Due to this there was automatic reconciliation
between the Classic General Ledger and the various controlling applications. The New
General Ledger provides the following features:

FIGURE 2 (DOCUMENT SPLITTING IN NEW GENERAL LEDGER)

PARALLEL ACCOUNTING: The New General Ledger allows several

parallel ledgers to be maintained in order to record transactions and
provide reports to meet different accounting requirements. This eliminates
the need to use the Special Ledger application separately in order to fulfill
these requirements.

INTEGRATED STATUTORY AND MANAGEMENT REPORTING: The New

General Ledger enables a business to perform internal management
reporting along with supporting the traditional purpose of legal reporting.
It allows financial statements to be generated for any dimensional in a
business. Therefore, the New General Ledger may be used to produce the
balance sheet which is required for external reporting purposes or the
Profit Centre analysis report which is required for internal reporting
purposes.

SEGMENT REPORTING: The New General Ledger allows reports to be

prepared on the basis of segments based on the International Financial
Reporting standards (IFRS) and Generally Accepted Accounting Principles
(GAAP)

COST OF SALES ACCOUNTING: The New General Ledger allows the

costs of sales accounting to be implemented.

DOCUMENT SPLITTING: Document splitting helps to create balance

sheets for entities that extend beyond the scope of the company code.

NEW TABLES: the new general Ledger makes use of the tables
FAGLFLEXT (totals), FAGLFLEXP (plan line items), FAGLFLEXA (actual line
items) and FAGL_SPLINFO (splitting data).

LEDGER CONCEPT IN THE NEW G/L

The New General Ledger uses the Special Purpose Ledger to save total values in the tables.
All company codes are assigned to a leading Ledger. For each client, additional ledgers for
each company code can be added. These additional ledgers can be used for different purposes
such as parallel accounting or management reporting. With the New General Ledger it is now
possible to perform postings that previously required several components. This is also true

with regards to the transfer postings between profit centers that were previously stored and
the Special Ledger.
The new general Ledger makes use of additional tables and fields as compared to the classic
general Ledger once the new Gen functionality is activated, the previous financial accounting
menu is replaced by the financial accounting (new) and the general Ledger (new) menu. It is
required to activate the new general Ledger accounting so that the transactional data is
written to the new tables rather than the classic general Ledger tables.

FIGURE 3 (ACTIVATE NEW GENERAL LEDGER ACCOUNTING)

ACTIVATING THE NEW GENERAL LEDGER IN THE SYSTEM

For all the new installations, the New General Ledger is activated by default. SAP
recommends the use of the New General Ledger functionality because of the many
advantages it has to offer. However, for existing customers it is optional. Existing customers
can continue to use the Classic General Ledger or they can migrate to the New General
Ledger. The New General Ledger is activated automatically during an upgrade.

https://help.sap.com/saphelp_nw70/helpdata/en/45/4f8e8bbf3f4f63a5dd197ef7d
53fa2/frameset.htm

9 must-knows before implementing SAP Simple Finance.

Uhm... now S/4HANA Finance...
Apr 22, 2015

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When talking to the VP of Enterprise Architecture in a Swissbased manufacturer back in April '15, he told me he was
quite confused with all the recent SAP marketing around
S/4HANA, SAP Simple Finance (oops, now S/4HANA Finance),
HANA Enterprise Cloud (HEC) and the user interfaces that
come along with all this like Fiori. He was looking for the big
picture, the real no-nonsense one.

So I explained that in essence S/4HANA is just a new name for the same good old Suite
functionality (ERP, SRM, CRM, ...) the difference however is in that the Suite can now run
on an in-memory database called HANA. Okay - and you can source S/4HANA from the
cloud and you have more alternatives when it comes to the graphical user interface one of
them being Fiori.
So, how does this relate to SAP Simple Finance (sFin)? Well, the Financials coding was the
first part of ERP optimized to run on HANA. The functionality itself or the way to configure
the system hardly changes (unless you want to use the Fiori apps...).
SAP Simple Finance is an add-on to ERP, which means it is a standard product developed to
work on top of SAP ERP (ECC6.07 to be precise). The official name used to be SAP Simple
Finance add-on 2.0 for SAP Business Suite powered by SAP HANA aka sFin 2.0. However...
as of October 2015, SAP speaks of S/4HANA Finance and it includes the 'Simple' coding.
SAP S/4HANA, on-premise edition 1511 became available in November 2015 (hence,
1511...). By the way, SAP S/4HANA CLOUD 1506 has been restricted available since June
2015.
SAP 'Simple Finance' includes SAP Accounting powered by SAP HANA, SAP Cash
Management and SAP Integrated Business Planning (IP and BPC and embedded BW) for
Finance and additional innovations in the areas of Treasury and Financial Risk Management,
Collaborative Finance Operations and more. The FI and CO tables are now combined in the
Universal Journal, a single line item table.
Before you jump into an SAP Simple Finance implementation however, theres a few things
you and your team must know*. Note: the below does not go for S/4HANA 1511.
9 must-knows before starting your Simple Finance implementation:

1. The finance add-on replaces the classic Financials applications in your SAP
ERP system. In contrast to accounting in SAP enhancement package 7 for
SAP ERP 6.0, Simple Finance comes with a simplified data model. Totals
tables and application index tables have been removed and replaced with
HANA views with the same technical names. A full list can be found at the
bottom of this article. This means the impact needs to be assessed on
your interfaces, your data warehouse, your authorization profiles, and
potentially your monitoring tools;
2. Some industry solutions and SAP ERP add-ons are not fully compatible
with SAP Simple Finance, like Asset Accounting (FI-AA). Carefully assess
compatibility with other components in your landscape;
3. The user experience is likely to change. Assess the impact on the required
skill-set in your teams and the potential need to rewrite documentation
and/or training materials;
4. Handle the required SP levels for SAP ERP 6.0 EHP7 and for SAP
NetWeaver 7.40 with the utmost caution and as described in the
administrators guide;
5. Before you install the Finance add-on, you must prepare the migration of
application data. These steps require specific financials application
knowledge;
6. Install the finance add-on using the Software Update Manager (SUM).
Ensure that you have downloaded the latest version of it from the SAP
Service Marketplace. In addition, you must install two SAP HANA Live
packages using the HANA Lifecycle Manager (HLM);
7. To run the financials applications, you must migrate the application data
first. For SPS 02, SPS 03, and SP04, some additional configuration is
required. For more information, see Installation of and Migration to the SAP
Simple Finance Add-On for SAP Business Suite powered by SAP HANA;
8. Read the Release Information for SAP Simple Finance add-on for SAP
Business Suite powered by SAP HANA (note 1925902), and;
9. To conclude, make sure your team reads the Release Scope Information
(note 1968568).

The following tables were replaced by SAP HANA views with the same names:

The line item, totals tables and application index tables of General Ledger Accounting
(GLT0, BSIS, BSAS and FAGLFLEXA, FAGLFLEXT, FAGLBSIS, FAGLBSAS)

The totals tables and application index tables of Accounts Receivable and Accounts
Payable (KNC1, KNC3, LFC1, LFC3, BSID, BSIK, BSAD, BSAK)

The line item and totals tables of Controlling (COEP for certain value types, COSP
and COSS)

The material ledger tables for parallel valuations (MLIT, MLPP, MLPPF, MLCR,
MLCD, CKMI1, BSIM)

The Asset Accounting tables (ANEK, ANEP, ANEA, ANLP, ANLC)

MENDEL KOERTS is the founder of ENSEAD Advisory and Associate Director with
Gartner Consulting. As an Enterprise Architect he has specialized in IT Strategy, Architecture,
and Governance, predominantly SAP related. Opinions expressed in this article are strictly
his own.
* Based on the Administrator's Guide SAP Simple Finance Add-On for SAP Business Suite
powered by SAP HANA, document version 1.0 2015-01-29

SAP Smart Financials the new Real Time Finance

on HANA
Big Data, SAP ERP Financials, SAP HANA, SAP Smart Accounting, UX

SAP is currently developing a new solution for Finance, Fixed Assets and Controlling using
the strength of HANA and new UX.
ALIGNED, AGILE, PREDICTIVE are the major characteristics of a Real Time organization
of the future.

Aligned means that they need to work from a transparent single source of
truth, at least for reporting purposes, to make sure everyone is working
with the same information and no time is lost with reconciling information
manually.

Agile requires real time finance processes that support instant reactions to
changing external conditions.

Predictive means gaining unmatched insight and foresight in order to

preempt potential future changes of the conditions before such changes
become a reality.

SAPs next generation architecture for a single source of truth.

SAP solutions leverage single source of truth
Processing of accounting records in a central journal

 Aggregation of shared data on the fly

New unified accounting architecture in SAP ERP
SAP HANA platform provides single source of truth
Real-time reporting through configurable views (semantically integrated virtual data model)
Library of methods for shared use by all solutions
Single data instance in shared in-memory database
Legacy ERP systems feed single source of truth
Real-time replication of all accounting records into a single SAP HANA platform via SAP
SLT
No need to physically consolidate back-end systems
One of the most important planned innovations for 2014 is the introduction of SAP Smart
Accounting. It is essentially an entirely new architecture for SAP ERP Financials.
Its main characteristics are:
-Convergence of FI andCO. There will be one logical document that is the common basis
for both regulatory and managerial accounting. Thereby a much higher degree of consistency
between FI and CO has been created abolishing the need for time consuming and error prone
manual reconciliation.
-Abolishment of pre-defined aggregates. All aggregation and transaction processing is now
performed on the fly based on HANA Live views. The totals and indices in FI and CO will be
a matter of the past. This fact is a further move to preserve data consistency throughout the
entire technology stack.
-More flexible reporting. As a beneficial side effect, reports can now be configured by the
end user in a very flexible way without requiring any assistance from IT.
The target: Accounting simpler and faster
One task of Smart Financials is to restructure the tables to avoid redundancies. A lot of wellknown tables will be removed.
Index tables removed

BSAS Index for G/L Accounts (Cleared Items)

BSID Index for Customers

BSAD Index for Customers (Cleared Items)

BSIK Index for Vendors

BSAK Index for Vendors (Cleared Items)

BSIM Index, Documents for Material

FAGLBSIS Index for G/L Accounts New G/L

FAGLBSAS Index for G/L Accounts New G/L (Cleared Items)

Aggregate tables removed

GLT0 General Ledger: Totals

GLT3 Summary Data Preparations for Consolidation

FAGLFLEXT New General Ledger: Totals

KNC1 Customer master (transaction figures)

LFC1 Vendor master (transaction figures)

KNC3 Customer master (special G/L transaction figures)

LFC3 Vendor master (special G/L transaction figures)

COSS Cost Totals for Internal Postings

COSP Cost Totals for External Postings

What is SAPs schedule?

The Ramp-Up started some weeks ago. General availability is planned for end of Q3 2014
not that far away from today.
So what are the next steps at itelligence? We are collaborating very close with SAP and
already gained insights into the new UX. Also we will install and migrate this system to our
landscape very soon.
If you have any questions, please dont hesitate to contact me via comment.
by Wolfgang Moeller, Global Director Discrete Industries, itelligence

General Ledger Accounting

EhP1 datasources
0FI_GL_10 (General Ledger: Balances, Leading Ledger)

This DataSource extracts the totals records from the leading ledger in the new General
Ledger
Delta Capable: Yes
Delta Procedure: AIED
Direct Access: Allowed
Note: SAP has provided 2 more datasources 0FI_GL_11, 0FI_GL_12 with different delta
procedures for
extracting the General Ledger balances if using the 0FI_GL_10 datasource leads to
performance issues.
Please refer SAP note 1392817 for additional information related to this
http://letsbebetterinsapbi.blogspot.ro/2012/03/how-to-extract-fi-ar-data-into-sap-bw.html

The general ledger holds all accounts for balance sheet and income (profit and loss)
statements.

The general ledger contains a number of sub ledgers:

Accounts Payable records all accounting transactions for dealings with

suppliers. Much of its data is obtained from procurement (Materials
Management).

Accounts Receivable records all accounting transactions for dealings with

customers. Much of its data is obtained from Sales and Distribution.

Asset Accounting records all accounting transactions relating to the

management of assets.

Travel Management manages and calculates travel costs and supports travel
planning and travel expenses.

Bank ledger supports the posting of cash flows.

All general ledger account postings that post to business expense accounts
automatically send the expenses as costs to Controlling. The balances of general
ledger accounts are used to calculate financial statements.

SAP General Ledger Extractors at a Glance: How to

Avoid Costly Mistakes

by Soumya Mishra, Managing Consultant, IBM Corporation

July 11, 2011

Learn how to choose the right SAP General Ledger extractor for your business
needs among the different options provided by SAP.
Key Concept
The basic purpose of general ledger accounting is to provide a comprehensive
view for external reporting. Until now, companies had to use multiple ledgers to
meet reporting requirements for both external and internal management
reporting. SAP General Ledger is the answer to get rid of multiple ledgers. It
combines all the functions of multiple ledgers into a single ledger with multiple
parallel ledgers.

With the introduction of the SAP General Ledger in SAP ERP Central Component (SAP
ECC), companies are either migrating from their classic general ledger and special ledger to
the new SAP General Ledger, or implementing it to support finance processes in SAP ECC.
In either case, to support finance reporting out of SAP NetWeaver BW, you need to
implement the new SAP General Ledger extractors offered by SAP. With the growing
demand for real-time reporting within SAP NetWeaver BW, it is essential that you choose the
appropriate extractors up front to avoid any surprises or rework. SAP has provided so many
options that it can sometimes be confusing.
Ill focus on the implementation considerations for the different SAP General Ledger
extractors available, the prerequisites for implementing the new extractors, the extraction
mechanism for the different extractors, the configuration steps for implementing these
extractors, and common challenges and their resolution.

SAP General Ledger Extractors Technical Considerations

Figure 1 shows the integration of the different SAP ECC tables for SAP General Ledger and
the information contained in those tables.

http://yellamelli-sapbi.blogspot.ro/2009/12/sap-bi-reporting.html

Difference Between Balance Sheet and Profit & Loss

Account
January 16, 2015 By Megha M Leave a Comment

The two important parts of financial statement are the Balance Sheet and Profit & Loss
account. Without the preparation of these two entities the financial statement cannot be
reported, even the readers of the statement are not able to clearly understand the companys
position. Hence, a due regard is to be given by every company in the preparation of the two.
However, people generally dont understand them very clearly and notice problems in
distinguishing the two terms.
Here with this article, the difference between Balance Sheet and Profit & Loss account is
presented.

Content: Balance Sheet Vs Profit and Loss Account

1. Comparison Chart
2. Definition
3. Key Differences
4. Conclusion
Comparison Chart
Basis for
Comparison

Balance Sheet

Profit and Loss Account

Meaning

A statement that shows

Account that shows the
company's assets, liabilities and company's revenue and
equity at a specific date.
expenses over a period of time.

Time Frame

Financial condition on a certain

date.

Financial changes during the

period.

Type

Statement

Account

Basis for
Comparison

Balance Sheet

Profit and Loss Account

Information
Disclosed

Assets, liabilities, and capital of

shareholders.

Income, expenses, gains and

losses.

Sequence of
Preparation

It is prepared after the

preparation of Profit & Loss
Account.

It is prepared before the

preparation of Balance Sheet.

Definition of Balance Sheet

A Balance Sheet is a statement that shows the financial position of the entity at a given date.
As you have seen that on the top of the Balance Sheet there is, as at written which
mentions the particular date at which it is prepared. It has two major heads which are to be
tallied. They are (1) Assets and (2) Equity and Liabilities.
On the asset side it displays the firms current and non-current assets. Current assets are those
assets which can be converted into cash within 1 year and includes cash in hand, stock,
debtors, bills receivables, cash at bank, marketable securities etc. Non current assets have
two parts: Tangible and Intangible assets. Tangible assets are the physical assets of the
company like machinery, building, furniture, land, vehicles, etc. Intangible assets is the non
physical assets of the company i.e. patents, trademark, goodwill, etc.
On the equity and liabilities side, it displays the shareholders fund, current and non current
liabilities. Shareholders fund includes the shareholders equity and reserves and surplus.
Current liabilities are those liabilities which are to be paid within 1 year and includes
creditors, bills payable, short term loan, etc. Non current liabilities are those liabilities
which are to be paid after a certain period and includes long term borrowings, bonds etc.

In SAP ERP, the balance sheet and income statements are included within the same financial
statement report. In the standard financial statement reports, you do not need to make
manual postings to the accumulated profits and losses. The system automatically calculates
the profit and loss for the year based on the income statement for the year when you run
financial statement reports, carried forward to the retained earnings account(s). Note that
retained earnings accounts are defined to capture the balance of profit and loss accounts
when the balance sheet accounts are carried forward to the new fiscal year and profit and loss
accounts are cleared for the new fiscal year. Note also that all profit and loss accounts should
be created for retained earning account of type X and hence are carried forward into the
retained account automatically.
There are two financial statement reports in SAP ERP. One is the classic financial statement report, and the other is
the new financial statement report. The classic financial statement report (program RFBILA00) has been available
since SAP R/2 and has been slightly modified with SAP ERP to include a ledger and other dimensions on the selection
screen. With the new general ledger (G/L), SAP provided one-stop integrated reconciliation of multiple ledgers.
Ledgers such as consolidation staging ledgers, profit center ledgers, and cost of sales ledgers are combined into a onestop ledger. Thus, the new G/L provides a unified data structure resulting in a single source of truth. The capabilities
of the new G/L reporting are based on a unified reporting database. In a single data record, you can include different
dimensions, such as profit center, segment, and functional area. As a result of this unified data reporting structure, a
new financial statement report has been developed, which is based on the drill-down reporting tool, provides flexible
analysis, and easily generates segmented financial statements based on dimensions other than the company code such
as segment, profit center, and so on. (Note that we cover segment reporting in Chapter 3.) Lets take a closer look at
the capabilities

Definition of Profit and Loss Account

Profit and Loss Account also known as income statement or statement of revenue and
expenses. The account represents the financial performance of the entity in a particular
period.
First of all the net sales (sales sales return) is recorded thereafter the cost of goods sold is
deducted and the result is the gross profit of the entity. Now from this gross profit the office
and administration (rent, insurance, printing and stationery, etc.), selling and distribution
(carriage outwards, bad debts, etc.) expenses are reduced which amounts to operating profit.
After arriving at operating profit operating income (rent received, profit from the sale of
assets, etc.) are added to it while the operating expenses (interest on loan, loss on sale of
assets) are lessened from it which results in the net profit or loss. If the income exceed
expenses it represents net profit while the expenses exceed income it represent loss.

Key Differences Between Balance Sheet and Profit & Loss

Account
1. The Balance Sheet is prepared at a particular date, usually the end of
financial year, while the Profit and Loss account is prepared for a particular
period.
2. The Balance Sheet reveals the entitys financial position, whereas the
Profit and Loss account discloses the entitys financial performance.
3. A balance Sheet is a gives an overview on assets, equity and liabilities of
the company, but the Profit and Loss account is a depiction of entitys
revenue and expenses.
4. The major difference between the two entities are is that the Balance
Sheet is a statement while the Profit and Loss account is an account.
5. The Balance sheet is prepared on the basis of the balances transferred
from the Profit and Loss account.
Conclusion

The Balance Sheet and Profit & Loss Account has its own significance. A Balance Sheet
enables the reader of the financial statement to clearly understand the entitys financial
stability, liquidity and solvency. The Profit and Loss Account is helpful in comparison of the
performance of the company. The two terms consist items of different nature and that is why
the chances of getting confused between them are very less.