Group Members: MahrukhUsmani

RubabFatimashahbaz Faiza

Irshad

Gohar Iqbal

ERP FM Presentation on Financial

Accounting Enterprise Structure

Content

Financial Accounting Enterprise structure

Chart of Accounts

General Ledger

Accounts Groups

Currencies

Financial Accounting Enterprise Structure

Definition

The Financial Accounting (FI) Enterprise Structure is

the key building block to your entire organization.

Most other modules in the system build upon the FI

Organization Elements that you create in the

Enterprise Structure.

FeaturesThe Financial Accounting (FI) Enterprise Structure

includes following features:Chart of AccountsFiscal Year VariantCompany Code ConfigurationBusiness AreasFunctional AreasAdvanced Validation and SubstitutionSales and Use Tax

SAP Concepts Related To

Chart of Accounts

General Ledger

Accounts Groups

Currencies

Chart of Accounts

This is a list of all G/L accounts used by one or several company codes.

For each G/L account, the chart of accounts contains the account number, account name, and the information that controls how an account functions and how a G/L account is created in a company code.

Use You can use the same chart of accounts for all company

codes

If the company codes all have the same requirements for the chart of accounts set up, assign all of the individual company codes to the same chart of accounts. This could be the case if all company codes are in the same country.

General Ledger

A general ledger (GL) is a chronological accounting record a business uses to keep track of financial transactions. Transactions are categorized and summarized into accounts.

An account is a unique record for each type of asset, liability, equity, revenue and expense.

The number and type of accounts that make up the general ledger is determined by the chart of accounts (COA).

G/L Master Record in the Chart of Accounts

G/L account master data in the chart of accounts area contains information about the G/L account that is valid for all company codes.

  The chart of accounts area also contains data that

controls how a G/L account is created in the company code-specific area

G/L Account Master Records in the Company Code

The company code specific area of a G/L account contains data that is only valid for one company code, such as the currency in which the account may be posted

Accounts Groups The account group is a summary of accounts based on

criteria that effects how master records are created.

The account group determines:

The number interval from which the account number is selected when a G/L account is created.

The screen layout for creating G/L accounts in the company code-specific area

UseWhen you create a G/L account in the chart of accounts area, you must specify an account group.

Using the account group, you can group the G/L accounts according to functional area.

The account group also defines the set up when creating a G/L account in the company code and chart of accounts

Currencies Legal means of payment in a country.

For each monetary amount that you enter in the SAP System, you must specify a currency.

In Financial Accounting, you have to specify for each of your company codes, in which currency ledgers should be managed. This currency is the national currency of the company code, that is, the local currency (or company code currency).

From a company code view, all other currencies are then foreign currencies.

Types Of Currency There are 5 types of currency in SAP r/3 system.

Group Currency: You define Group Currency when you define Client (SCC4) Global Company Currency: You define Global Company Currency when you

define Company that is assigned to your company code. Hard Currency: YOU define Hard Currency when YOU define the Country

that your Company code assigned to. A hard currency is used in countries with high inflation.

Index-Based Currency: You define IB Currency when You define Country that your company code assigned to. An index-based currency is stipulated for external reporting (for example, tax returns), in some countries with high inflation.

Company code Currency: You define the company code Currency when you define Company Code.

T-Codes

• OB13 COA creation• OB62 – Assign Company Code -> Chart of

Accounts• OBD4 define Account Groups• OB07 Exchange Rate of Currencies• Creation of G/L account centrally-FS00• Creation of G/L account in COA- FSS0• Creation of G/L account in CC- FSP0

QUESTION/ ANSWER