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General Ledger Accounting In SAP: A Complete Overview
The main purpose of general ledger accounting is to represent the external accounting and all the accounts involved in it fully. Thus it helps record all the business transactions in software systems integrated fully with all the operational areas. General Ledger accounting in SAP forms an integral part of accounting and bookkeeping in today’s world.
It ensures that all the accounting data is fully accurate and complete. As it can assist you in maintaining all the parallel accounting. By running several parallel ledgers for different accounting principals.
General ledger accounting supports all the segment reports that are required by accounting principles IFRS(International Finance Reporting Standard). (Generally Accepted Accounting Principals) contains segmentation.
What Is General Ledger Accounting In SAP?
General Ledger accounting in SAP is one of the core components of SAP financial accounting that records all business transactions in a structured and centralized manner. This serves as the backbone of financial reporting that helps in maintaining the complete record of all financial transactions. These are used for maintaining the balance sheet, profit, and loss account, and other financial reports.
What Is General Ledger In Accounting?
A general ledger is basically a central accounting record that comprises all the financial transactions of a company. This serves as the basic foundation for preparing all financial statements such as income statements as well as balance sheets. Additionally, the General ledger categorizes and summarizes transactions that are recorded in the sub-ledgers to ensure financial integrity and accuracy.
List Of General Ledger Accounts In SAP
There is a list of general ledger accounts in SAP that you must be well aware of while you make use of T-Code S_ALR_87012326 or you can click on the SAP easy access menu. Go To Accounting————-> General Ledger Information System———> General Ledger Reports———> Master Data ————> Chart Of Accounts.
A new window will open: Enter the chart of accounts Key ——–> Execute (F8)
It will open the List of general ledger accounts in SAP with all respect to the key mentioned. So, let’s find out the details.
This is the list of general ledger accounts in SAP that you need to be well aware off before using this software.
General Ledger Accounting In SAP FICO
General ledger accounting forms an essential component of SAP FICO that manages and records all the financial transactions of an organization. This serves as the central repository of the complete financial data. Thus ensuring accurate reporting as well as compliance with accounting standards like GAAP, IFRS, and local regulations.
Key Features Of General Ledger Accounting In SAP FICO
There are certain key features of general ledger accounting in SAP FICO that you must be well aware of. Some of these key features of it are as follows:-
1. Chart Of Accounts
It all defines the structure of the G/L accounts as multiple charts of accounts can be assigned to different company codes. This is one of the crucial aspects of general ledger accounting in SAP FICO.
2. G/L Account Master Data
Each G/L account is defined uniquely with all the attributes and account types, P&L and balance sheet, tax category, and reconciliation type. Additionally, this can boost the scope of your SAP FICO accounting options to meet your goals with ease.
3. Document-Based Accounting
Every financial transaction is recorded with some unique document number for your tracking. This is one of the crucial aspects of General ledger accounting in SAP. However, you should not make your selection and choices incorrectly.
4. Real Time Integration
It automatically posts all the financial transactions from various other SAP modules. Some of the key factors that you should not make your selection choices are as follows:-
- Accounts receivable.
- Accounts Payable.
- Controlling.
- Asset Accounting.
- Sales and distribution
- Materials management.
5. Leading & Non-Leading Ledgers
All the leading ledgers are mandatory for legal reporting. It is one of the crucial aspects of the leading ledger. Non-leading ledgers are all optional used in case of parallel reporting.
6. Fiscal Year Variants & Posting Periods
It is all defined for financial periods for reporting and complete year-end closing. It is one of the crucial aspects of fiscal year variants that you must consider during the posting periods.
7. Reconciliation Of Accounts
You need to connect all the sub-ledgers( AP, AR, AA) to ensure all the automatic updates. This is one of the crucial aspects of the reconciliation of accounts. As it can boost the scope of your record-keeping perfectly.
8. Reporting Analysis
Generates key financial reports like Trial Balance, Balance Sheet, and Profit & Loss Statement. As it can boost the chances of your accuracy to a greater level. With proper planning, things can turn out better for you.
SAP FI- General Ledger Account
General ledger accounts are used to offer a clear picture of external accounting and accounts to record all the business transactions in an SAP system. All these software systems are integrated with all other operational areas of a company ensuring that all the accounting data is always complete.
How To Create A General Ledger Account In SAP?
There are certain steps you need to follow to create a general ledger account in SAP. Some of the crucial steps that you need to follow are as follows:-
You can make use of the T-Code FSOO to define the G/L account centrally.
Alternatively, you can also use the following path as well.
In SAP R/3 Go To Accounting——-> Finance Accounting———> General Ledger———-> Master Records———> G/L Accounts ——-> Individual Processing ———–> Centrally
In the field of G/L account you need to enter the account number of the G/L account along with it and enter the Company Code Key. You must click on the Create icon as shown in the following screenshot.
Account Group
The account group determines the group for which the G/L account must be created for example all the administrative expenses.
P&L Statement Account
If the G/L account is to be used for the P&L Statement account then you need to select the option or you can use the balance sheet account. Under the column provide the short text or you can create the G/L account in long text.
The next and the important step is to create the control data. You need to provide all the account currency and other fields such as the balance in local currency. Exchange rate difference key, Tax category, and posting without tax are allowed. Recon the account for your account type, tolerance group, and alternative account number. In the following screenshot, all the things are elaborated properly.
Click / Create the bank interest by providing data in the following fields.
Once all the details are entered you must click on the save button to create the G/L account.
Posting To General Ledger
After you complete the payroll run the next step is to post the payroll run to your G/L accounts. Posting to G/L accounts from the complete payroll run includes all the following.
- First, you need to create a G/L posting account.
- The next step is to create all the document summaries for G/L posting.
- Once you create the summarized documents, you must make postings to the relevant G/L accounts and cost centers.
Control In Chart Of Accounts
In the field of G/L accounts enter the account number in G/L accounts and the company code Key and you need to click on the Create icon as shown in the screenshot:-
Account Groups
Account group ensures that the group for which the entire G/L account needs to be created for example administrative expenses.
You need to define the accounts group in SAP in the following ways like:-
- Transaction Code- OBD4.
- Menu Path -SPRO – Financial Accounting- General Ledger
- Accounting- G/L Accounts- Master Data- Preparations- Define The Account group
Step -1 Enter The T Code “OBD4” in the SAP command field and enter
Step -2 On the change view “ G/L account groups” overview of the screen you must click on new entries to click on accounts”
Step -3) On the New Entries Account Group Screen you have to update the following details
- Chart of accounts: Give the chart of accounts key for which you are creating the accounts in SAP.
- Acct Group:- You need to enter the account group Key as you are allowed upto 4 digits.
- Name: Update the name of the account group.
- From account: update the starting number from the account group.
- To Account:- You need to update the last number from the account group.
Step -4 After all the details are updated click on the save button
Now, you need to select customizing the request number and press enter to save the configured details. As per your request.
Successfully you may have defined the account groups in SAP.
P&L Statement Account
If the G/L account is used for your P&L Statement account then you must select the option otherwise you can make use of the Balance sheet account.
Description
You must enter the short description of your complete G/L account. Here, you need to enter the long description of the G/L account.
Consolidation Data In Chart Of Accounts
The trading partner is there to prepare the consolidated financial statements. This can boost the scope of your brand value to a greater level. However, it can boost the scope of your brand value to a greater level.
Account Control In Company Code
There are certain methods that you need to employ to control the company code. Some of the key factors that you can take care of are as follows:-
- Account Currency: You need to update the currency where all the accounts will be managed.
- Only Balances In Local Currency: Used to make the updation of the balance only in local currency whenever users post items in the G/L accounts.
- Exchange Rate Difference Key: Make use of the drop-down menu in order to select the appropriate key.
- Tax Category: If your account is tax-relevant then you must use the drop-down menu to select the tax code key.
- Posting Without Tax Allowed: You must select the box if the posting for all the accounts is without tax.
- Account For Account Type: Select the drop-down menu then you must select the asset or customer or vendor of the account that is used for the reconciliation account.
- Alternative Account Number: It is used to indicate the account number from your legacy system.
- Tolerance Group:- Select this field for your open item clearance difference.
How To Maintain Account Management In Company Code?
To maintain the account management in the company code there are some steps that you need to follow from your end. Some of the key steps that you need to follow from your end are as follows:–
- Open Item Management: Select the field if all the accounts are to be displayed as per the open item lines. Open the item management that is used only in balance sheet accounts.
- Sort Key: You need to select the drop-down menu to make the correct selection for the appropriate sort key for your account.
- Select the Create/ Interest/ Bank tab and update.
You must go through the below screenshot to have a clear insight into it.
How To Control Document Creation In Company Code
There are certain ways you can adopt to control the document creation in the company code. Certain steps you need to follow in this regard while meeting your requirements with complete ease.
1. Create A Field Status Group
All the field status group helps you to determine the screen layout for your complete document entry. You just need to select the drop-down button and after that, you need to select the appropriate field status group key.
2. Post Automatically Only
You should select all the checkboxes for the account that can be posted by the system using the account determination table bank/ Consider all the financial details in the company code.
3. Planning Level
To control the displays in the cash management planning level field is used. It is one of the crucial facts that you should not make your choices on the incorrect end.
4. Cash Flow
It assists you in determining the G/L account in the cash flow account. This is one of the crucial aspects of cash flow management.
5. House Bank
You must click on the drop-down menu and select if the complete account is an indicator for your company’s bank.
6. Account ID
This field will also determine the house’s bank account. As it can boost the scope of your Account management to a greater level.
Interest Calculation Information In Company Code
There are some simple steps you need to adopt to make the interest calculation fruitful for your business. Some of the key steps that you must adopt are as follows:-
1. Interest Indicator
You must click on the drop-down menu and you must select the interest calculation indicator if the account is to be included in the process of automatic interest calculation.
2. Interest Calculation Frequency
You should click on the drop-down menu and you should select the interest calculation frequency. For this account at intervals.
3. Key Date And Last Interest Calculation
You must click on the drop-down menu and select the key date and the date of the last interest calculation. All the programs that are processed for this account.
4. Date Of Last Interest
For your date of last interest, you should run the calculation for this account. It is one of the crucial aspects of the company code.
SAP FI – Modify A G/L Account
If you want to modify the General Ledger Account in SAP then you have to follow certain simple but crucial steps. So, let’s go through the steps to have a clear insight into it.
Step -1 You should enter the Transaction Code FS00 in the command field of the SAP and then Click on Enter to continue.
OR
Go To Accounting → Finance Accounting —> General Ledger ——–> Master Records—-> G/L accounts ——> individual Processing——-> Centrally.
Step -2 :- You must enter the below details and click on Modify Icon
- G/L account.
- Company Code.
Step -3 In the next screen, the details are opened in the edit mode and you need to modify the details if it is necessary:-
Step -4 You must click on the Save Button to save all your details.
Step -5 In the status bar you can view the message that the General accounting ledger in SAP is modified.
How To Create A Ledger With Reference?
You need to follow some of the simple steps to create a ledger with reference. However, general ledger accounting in SAP needs some crucial intervention. So, you must follow the steps to understand it clearly.
1. Understand The Purpose Of Ledger
A ledger is basically a record-keeping system. These help you track all the financial transactions such as debit, credit, and balances. When you add the reference column this will help you to link the entry to a specific source or document. It can help you to maintain clarity as well as audit purposes.
2. Decide The Format
You can easily create a ledger in two ways. Some of the simple general ledger accounting in SAP. you can easily create.
- Make use of Notebook and paper with all the ruled columns.
- Make use of spreadsheets that are based on accounting software that you tackle digitally.
3. Set Up The Columns In Ledger
A basic ledger with the use of all reference columns makes use of the following headers.
- Date.
- Description.
- Reference.
- Debit.
- Credit
- Balance.
4. Create The Ledger
Manual Method
- Draw a table on paper with the columns listed above.
- Start with an initial balance (e.g., $1,000) in the “Balance” column on the first row.
- Record each transaction in a new row, including the reference.
- Calculate the balance after each entry:
- New Balance = Previous Balance + Credit – Debit.
Spreadsheet Method
- Open Excel or Google Sheets.
- In the row 1 enter the column Date, description, reference, debit, credit, and balance.
- In row 2 enter the starting balance( In cell F2, Type 1000).
- Enter Date.
- Enter Description.
- Enter the reference.
- Enter all the debit and credit amounts.
- Make use of the formula for the balance:-
F2- E3+ D3( Previous Balance – Debit + Credit balance)
- Drag The formula for all your subsequent Rows.
5. Example Ledger
Here, are some examples of ledgers that you must make use of while meeting your needs with ease. Some of the key factors that you should take care of are as follows:-
- Date.
- Description
- Reference
- Debit
- Credit
- Balance
6. Make Use Of Accounting Software
If you manage all the business for your accounting software all the quick books or the wave automatically generates all the ledger. Additionally, you should put all the references as well as invoice numbers and momo fields.
Import all the bank transactions from your bank statements to assign all the references manually. This is one of the crucial aspects of accounting software. Additionally, you should get through the details to have a clear insight into it.
7. Verify Your Ledger
Double-check calculations (manually or with spreadsheet formulas). Ensure all references match their corresponding documents. Reconcile the ledger with bank statements periodically. It is one of the essential aspects that you should take care of when you want to verify your ledger.
Once you verify your ledger then specific tailored scenario can work well in your favor. Additionally, you cannot make your selection and choices on the incorrect end.
SAP FI – Journal Entry Posting
The use of the journal entry postings in SAP F1 is to take a batch. This can validate your consistency and you should create all the F1 documents to post those entries in various line items that are essential for subsequent business items.
To post the Journal Entry In SAP FICO you must follow some of the simple steps. Some of these steps are as follows:- Use T-code FB50 —–> Here you need to provide the company code:-
After that, you must enter the document date as it is shown below:-
Some of the next step is to offer some necessary details:-
- G/L Account: Enter all the accounts To be credited.
- Short Text: Consider all the description amounts.
- Amount in Doc Currency:- Enter all the amounts to be credited.
For your debits you must follow all the data of the following:-
SAP FI- Define The Posting Keys
All the posting keys in SAP FICO are used for determining all the account types ( A, D, K, M, and S ) and also help you to identify the types of posting. In most cases, this is a two-digit numerical key.
- Go To SPRO———–> SAP Reference IMG———-> Financial Accounting————> Financial Accounting Global Setting———> Document Line Item———-> Controls———> define posting keys ——————> Execute.
Click on the Create item
The last thing that you need to do is enter the 2-digit numeric code name the posting key and press the enter key:-
Now, you need to provide all the following details:-
- Click on the debit and credit indicator: Select debit or credit.
- Account Type: Select all the appropriate account type.
- Other Attributes:- Select the correct attributes.
- Reversal Posting Key:- Update all the reversal posting keys.
Asset Posting Keys Of General Ledger Accounting In SAP
You must get through the asset posting keys to make things work perfectly well for you. Some of the key factors that you should consider from your end are as follows:-
| Posting Keys | Description | Debit/ Credit |
| 70 | Debit Asset | Debit |
| 75 | Credit Asset | Credit |
Material Posting Keys Of General Ledger Accounting In SAP
| Posting Keys | Description | Account Type Debit/ Credit |
| 89 | Stock Inward Movement | Material Debit |
| 99 | Stock outward movement | Material Credit |
SAP FI – Define The Document Type
Document type is used to distinguish between different forms of business transactions to classify the accounting documents. It helps to determine the number of range of documents. It also includes specific account types like vendors, materials, and assets.
| Document Type | Document Type Description |
| AA | Asset Posting |
| AN | Net Asset Posting |
| DR | Customer Invoice |
| DZ | Customer Payment |
| KA | Vendor Document |
| KG | Vendor Credit Memo |
SAP FI – Define The Document Number Ranges
You can assign one or more than one document types as well as number range. The number range applies to all the document types that are mentioned in document posting and entry.
SAP FI – Hold A G/L Document Posting
You can also hold the posting of a G/L document or temporarily save any kind of document in the following conditions.
- Whenever the G/L document is not complete.
- Avoid incomplete and incorrect information in the document.
- In order to hold the G/L document posting you can make use of the T-code FB50. After that you need to enter the following details.
- Enter the document date.
- Make a posting of all the G/L accounts to be credited.
- You need to enter the credit account.
- Enter all the G/L accounts to be debited.
- Enter all the debit amount.
SAP FI- Park A G/L Document Posting
SAP FI provides the option with some limited authorization amount for your posting. You need to seek the help of an example to meet your goals.
Example:
Consider an accountant authorized to post documents up to $2,000. If they need to process a document worth $5,000, which exceeds their authorization limit, they can park the document. This parked document can later be reviewed and posted by a higher authority with the appropriate authorization.
SAP FICO – GL Reporting
Multiple G/L account reports can be generated in SAP FI. The most common ones that you must follow here are as under. Some of the key factors that you should know here are as follows:-
- G/L Chart Of Account List
- G/L Account Balance
- G/L Account List
- G/L Account Totals & Balances
G/L Chart Of Account List
G/L or Chart Of Account List Are As Follows:- Finance Accounting———–> General Ledger——–> Information system———-> General ledger reports——–> Master Data ——-> Chart of accounts.
You can make use of the T-Code S_ALR_ 87012301. Additionally, you can make use of these paths to make use of this screenshot.
G/L Account Balances
G/L Account List
You can make a user of the T-code FS00 to define the G/L account centrally.
G/L Account Totals & Balances
There are some simple ways to calculate the General Ledger Accounting in SAP. You should make use of the T-code S_ALR_87012301 or you can follow the path given below. Some of the key factors that you should know are as follows:-
Follow the following path to make things work perfectly well for you. Some of the key aspects that you should know here are as follows:-
Accounting —> Finance Accounting—> General Ledger —> Information System—> General Ledger Reports—> Account Balances—> General—> General Account Balance ( New)
General Ledger Account Table In SAP
SAP’s general ledger account table can make things work perfectly well in your favor. Some of the key factors that you must take care of are as follows:-
Final Take Away
Hence, these are some of the crucial facts that you must be well aware of while you want to go through this process and meet your needs with ease. Try to develop a better solution that can make things work perfectly well.
]You can share your views and opinions in our comment box. As this will assist you in meeting your needs with complete clarity. Here, proper planning can make things happen in your favor while you want to reach your goals.
