Ac010 sap pdf

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AC Business Processes in Financial. Accounting.. COURSE OUTLINE. Course Version: Course Duration: 5 Day(s). Course announcements. Participants of this course will gain an overview of the fundamental business processes and tasks of Financial Accounting with the SAP . Goals. Participants gain an overview of the business processes and tasks of Financial Accounting. The connections between those business processes are also.


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„Some software products marketed by SAP AG and its distributors contain Financial Accounting I. Financial Accounting and. Reporting. AC 5 days. All rights reserved. v Contents AC Appendix: Accounting Tips. /Q2 AC Lesson: Navigation Figure 1: Logging on to an SAP System The SAP. SAP AC - Overview to Financial Accounting and Reporting. Figure 1: Logging on to an SAP System The SAP logon Unit 1: Navigation AC Figure 2: .. DOWNLOAD PDF EBOOK here { lesforgesdessalles.info }.

Use your own password whenever you log on. Choose the correct answer s. Record the document number: The maximum amount that constitutes a minor payment difference is defined in your system settings. This could be the credit limit at credit control area level, or a customer's risk category.

Navigation Exercise 1: In this exercise, you will first create a log-in entry to identify which system you would like to gain access to.

You will then access that system with the appropriate client, user ID and password. To do this, use the information that you have been given by the instructor. You have now created a login entry. You will use this entry to gain access to the SAP system you have identified with the information provided. Navigation AC Solution 1: There are a variety of ways to find it and a variety of places it could reside on your desktop.

These variables depend on how the GUI software was installed. Consult your technical support if you cannot find the application. You may be asked to change your password.

In this case, execute the following steps. If you are not asked, skip to solution step J. A password change dialog box displays. Navigation Exercise 2: Navigating Menus Exercise Objectives After completing this exercise, you will be able to: What are the names of the transactions that are located under the folder Order in Sales and Distribution?

What are the names of the transactions that are located under the folder Posting in General Ledger? Navigation AC Solution 2: Navigating Menus Task: Navigation Exercise 3: In this exercise, you create a series of transactions as favorites.

Create a favorite for the transaction Post Incoming Payment in Customers. This is transaction code F This is transaction code XD Create a favorite for the transaction Posting Invoice in Customers. This is transaction code FB Navigation AC Solution 3: This menu path is at the top of your window. Navigation Exercise 4: You would like to be able to store the Websites as favorites for quick access right from your SAP system.

You will create and save three Websites as favorites in the navigation area of your SAP system.

AC010 Financial Accounting and Reporting

Create as a favorite a link to the Website www. Navigation AC Solution 4: Navigation Lesson Summary You should now be able to: You can always have only one session open. Determine whether this statement is true or false. Which of the following is not part of the information required to log on to the SAP system?

Choose the correct answer s. What menus are standard on all SAP screens? Which of the following provides general information on the SAP system and transaction or task you are working on? List three types of online help that are available in the SAP system. False You can create up to six sessions. D You do not customize your settings until you are already logged on to the SAP system. C The System menu contains functions that affect the system as a whole, such as Create session, User profile, and Log off.

The Help menu provides various forms of online help. A The Status Bar contains information on system messages, as well as system information such as client, user, transaction codes and response time. D Favorites can consist of Web links, standard and customer transaction codes, and links to other files, such as Word documents or PowerPoint files. SAP Library This is where all online documentation can be found. Glossary Enables you to search for definitions of terms. Settings Enables you to select settings for help.

F1 Field level help that provides information about the field. F4 Field level help that provides a list of field values or, in the case of an extensive list, an option to search for the information. We will first study key organizational elements in financial accounting.

Many of the concepts learned in this unit will apply to other units in the course. Organizational Structures for Financial Reporting General Ledger Account Master Data Accounting Transactions — Processing in the General Ledger.. Accounting Transactions in the General Ledger Organizational Structures for Financial Reporting Lesson: They are introduced here.

The Controlling CO application's key organizational element is a controlling area. We will study the options for assigning one or several company codes to a controlling area. Each company must fulfill national reporting requirements and is, therefore, represented by a company code. IDES includes a very diversified group of companies.

The various companies work in three different business segments, which are represented by business areas in mySAP ERP. Company Code A company code is an independent accounting entity the smallest organizational element for which a complete self-contained set of accounts can be drawn up.

A company code has a unique, four-character key, which can be alphanumeric. Figure 8: Company Code The general ledger is kept at the company code level and is used to create the legally required balance sheets and profit-and-loss statements for the company code. This is done either manually or by deriving the company code from other data elements. Each affiliate company code is a legal entity that is required by law to provide financial records according to country-specific regulations.

Figure 9: Each company code has a local currency. Amounts posted in foreign currencies are automatically converted to the local currency. Organizational Structures for Financial Reporting Figure Business Area The business segments, or branches, in which a group operates can be set up in the SAP system as business areas.

Business areas provide an additional evaluation level for such purposes as segment reporting. Use of business areas is optional.

The Business area field shows up as an additional account assignment when posting to an account as long as the field is turned on in configuration. The field can be made a required entry during posting. Figure If certain company codes are not active in specific business areas, you can use a validation to prevent postings to this business area from the company codes specified.

In our course, we will use additional business areas when completing our exercises BA , where represents a student's group number. This will allow us to separate one student group's work from another when posting to the same account. We will see the Business area field when we create postings in the next lesson.

Controlling Area The Controlling Area is the most important organizational element in the Controlling application. The latter is used for internal Accounting. A controlling area identifies a self-contained organizational structure for which costs and revenues can be managed and allocated.

It represents a separate unit of cost accounting. Controlling Area More than one company code can be assigned to one or more controlling areas. This enables a cross-company code costing between the assigned company codes.

However, assigning more than one company code to the same controlling area is possible only if all the assigned company codes use the same operating chart of accounts and fiscal calendar year.

Sap pdf ac010

This combination is a fiscal year variant. Organizational Structures for Financial Reporting Exercise 5: Organizational Structures for Financial Reporting Exercise Objectives After completing this exercise, you will be able to: Controlling area for company code Determine which controlling area company code is assigned to. Organizational Structures for Financial Reporting Task: We will also discuss the reasons that a company code may need to be assigned to more than one chart of accounts.

Chart of Accounts Each general ledger is set up according to a chart of accounts. Many country-specific charts of accounts are included in the standard system. Chart of Accounts Assignment For each company code, you must specify one chart of accounts for the general ledger. This chart of accounts is assigned to the company code in configuration and is referred to as its operating chart of accounts. A chart of accounts can be used by multiple company codes see diagram.

This means that the general ledgers of these company codes have identical structures. General Ledger Accounting AC Settings for Company Codes Before you can use an account in a company code, you have to maintain the account definition at the chart of accounts level. You then create company code-specific settings, which are only valid in the company code. An example of a company code-specific setting is defining the account currency. Most of the accounts in company code use the EUR currency, whereas company code uses USD for most of its accounts.

When the account currency is the local currency of the company code, one can post to that account in any currency. General Ledger Accounting AC Accounts with the same account group normally have similar business functions.

You could, for example, have an account group for cash accounts, one for expense accounts, one for revenue accounts, and one for other balance sheet accounts. The account groups are assigned number ranges. Via the number ranges, you can control which account numbers are permissible for cash accounts, expense accounts, etc. That is, account groups control which fields are required for data entry, which fields are optional for data entry, and which fields do not show up at all in the company code segment.

Reconciliation Accounts Reconciliation accounts connect subsidiary ledgers with the general ledger in real time. This means that a posting to a subsidiary ledger posts to the corresponding reconciliation account in the general ledger at the same time. The subsidiary ledgers, which are connected to the general ledger via reconciliation accounts, are the vendors, customers, and asset ledgers.

Transaction Figures A transaction figure describes the number of all postings on an account in debit or credit. For each account in SAP, basically one transaction figure is kept for debit and one transaction figure for credit. The financial statements for the company code are calculated using these transaction figures.

If using business areas, transaction figures are also kept per business area see figure. If you create a financial statement for the business area, the transaction figures for that specific business area are used to supply information for the financial statements. Financial Statement Version A general ledger is kept in order to provide the information needed to create a balance sheet and a profit-and-loss statement. These reports have to meet country-specific requirements.

To meet the various reporting requirements, various financial statement versions have be created in the SAP system.

In these financial statement versions, you define exactly which accounts are to appear in which line items of the financial statement.

Many financial statement versions are included in the SAP system. Financial Statement Version When running financial statement reports, select a financial statement version that contains the details of the report structure. Therefore, all four company codes had to be assigned to the same operating chart of accounts INT. However, in certain countries must report their financial reports to authorities in their countries using the country-specific chart of their country.

In order for it to be possible for external reports to contain the account numbers used in those individual countries, a country-specific chart of accounts was created for those three company codes. These country-specific charts of accounts meet the requirements of the respective countries. This is done using the Alternative account number field. The operating charts of accounts are assigned to this group chart in configuration.

Once an operating chart has been assigned to a group chart, the Group account number field becomes required in the chart of accounts segment of the master record. They are set up in the SAP system as company codes. Each company code has its own complete general ledger, or list of accounts it can post to. In the general ledger, very few daily transactions are completed. Most of the daily transactions are completed in subsidiary ledgers, such as accounts receivable and accounts payable.

The following exercises are to help you become more acquainted with master records in General Ledger Accounting. In order to learn how to create a journal entry, you will post an increase in capital for IDES Germany in the next lesson. Task 1: Display the chart of accounts Display the chart of accounts report and then display the details of account within that chart. Display the chart of accounts INT. Display the details of account within the chart.

Check whether it is possible to translate the name of this account into other languages, and whether you can create key words to search for this account. The definition of the account contains some control parameters. What type of account is account ? What is the account currency in company code ? Company code ? Task 3: Identify reconciliation accounts Identify reconciliation accounts for subledger accounts. Is this account a reconciliation account? If so, for which subsidiary ledger? Make the same determination for accounts and Task 4: Does this tell you which operating chart of accounts is used by this company code?

Task 5: Determine the placement of account in financial statement version INT The balance sheet and income statement report can be run using different versions, called financial statement versions. Some versions can be very detailed, such as for the controller, and others can be very summary in nature, such as for the board of directors. Note the location of account in the financial statement version INT. Note its financial statement item name and all items above it in the financial statement version hierarchy.

Check the chart of accounts. The parent company is responsible for assigning account numbers and maintaining the charts of accounts for the IDES group. Check whether this account has been created. Task 7: Before postings can be made to account in company code , you need to create the company code-specific settings.

The account should have a structure similar to that of account 70 For this reason, use this account as a reference. Make certain that the account in Company Code uses the EUR currency, line item display is activated, sort key is entered, and the alternative account number is removed.

Task 8: The new account has to be entered in financial statement version INT. Enter it in the same financial statement item as reference account 70 Use Search binoculars to find the account. Choose Search again in the Find dialog box. Put your cursor on the yellow highlighted account, Drill down to account and choose Select f2. You should see the following: Liquid funds accounts CASH 4.

Here, you can translate the account name and enter key words by language to search for the account. Select the Information tab.

The account is marked as a balance sheet account. Task 2: The account currency is EUR. Enter the following data. The account currency is GBP. The reconciliation account for the Account type field is in the Control data tab in the Company code section. The value Vendors is entered in this field. Thus, this account is a reconciliation account for accounts payable. Account Clearing account for customers. Clearing account for assets. Clearing accounts can not be posted to directly in the General Ledger.

They can only be posted to indirectly with the help of subledgers. The name of the chart of accounts is in the third line of the header data: The chart of accounts segment contains general information about the account that pertains to all company codes that can post to the accounts in the list.

It lists the accounts for which the company code-specific settings have been created for a specific company code. Unlike the chart of accounts list, however, it is not a drilldown report.

The account should exist. Fill in the following data. If you did remain in the screen from the previous exercise, the financial statement should be automatically expanded to show you where the reference account, 70 , is located in the financial statement version. If you have to call up the screen again, the financial statement version does not automatically open at account 70 Insert in the line From acct.

To acct. It you do not see a free line to enter your account, use the Next page icon at the bottom of the dialogue box to move to a blank line to enter your account. Do not type over an existing account, as you will replace it with your account!

If you exited the screen from the previous exercise and then re-entered the company code screen of the master record, the financial statement version is not automatically expanded at the reference account 70 In this case, you must carry out the following steps, after you have selected Financial statement version for INT. Use Find the binoculars at the top of the screen to search for account 70 Ordinary Share Capital.

Select account 70 in the find pop—up box. The account is found under the financial statement item Subscribed capital. Insert the interval of to First of all, the structure of the financial document is analyzed. Then, the effects of the postings are examined by analyzing the transactions on the posted accounts and by running the balance sheet. We will also see how external and internal Accounting are integrated by using cost elements. In SAP, accountants can use a single-entry Enjoy screen for most of their postings.

In some cases, the traditional complex screen is used. The respective postings can also be displayed when querying posted accounts. IDES is going to sell some new stock.

The entry screen is divided into the following areas: Work templates Here, you can select screen variants, account assignment templates, or held documents as references. A held documents is a document that a user saves without posting it, with the idea that the user will complete and post the held document later. To return to the original line layout of the GL posting table, right-click on the screen, and choose Reset screen variant.

Header data Header data applies to the whole document, such as posting date and document type. Some of the header data can be in display format only, or hidden from the user via editing options.

Line item information Here, the line items of the document are entered. Information area Here, the debit and credit balances are displayed by using a traffic light icon. In the initial screen, you enter the data for the document header. Additionally, you enter the posting key and the account for the first line item. The key driver of the layout of the entry screen for the line item is the field status group of the account that is being posted to. With this information posting key and field status group of the account to be posted to , the detailed entry screen for the first line item is set up.

When you choose Enter, you proceed to the next screen, which contains the Amount field and Additional account assignment fields for the first line item. This includes, for example, business area, text and Cost Center.

At the bottom of the second screen, you enter the posting key and account for the second line item of the posting. When you choose Enter, you proceed to the third screen, which contains the Amount field and Additional account assignment fields for the second line item.

You continue with this same process for all the line items that make up the posting. Important Standard Document Types In order to distinguish between the various FI transactions, document types are used. Each document is assigned to one document type, which is entered in the document header. Document numbers are provided by the document number ranges assigned to one or more document types. Posting Key Each document line item contains one posting key.

This is an instrument that is used for internal control and is entered in the complex posting screen to tell the system: Instead, debit represents posting key 40 and credit represents posting key These posting keys appear in the document and their control functions are still relevant. Each posting key is used for posting either a debit or a credit to one account type. For postings in the general ledger, you need only two posting keys: Account Information The balance display and the line item display are provided to display the the account data.

The balance display is an overview of the saved transaction figures of an account. You can drill down from the balance to a list of the items that make up the balance. From this line item list, you can drill down to the document containing this line item.

From there you can see the complete transaction by selecting Document overview. If there is an original document for this mySAP ERP document and it was archived optically, you can display it as well.

Accounting Transactions in the General Ledger Exercise Objectives After completing this exercise, you will be able to: Post an increase in capital Post the increase in capital of , EUR to account Use account , Transfer of reserves, for the offsetting line item.

Use the With business area screen variant. Post the transaction to business area BA. Enter Increase in capital, group for the short text. Enter the increase in capital using the Enjoy screen.

Pdf ac010 sap

Display the document. What is the meaning of the PK column and its entries, 40 and 50? Query an account To make certain that the posting was actually completed properly, check the balance of account for your business area only and drill down to the document.

Display the balance. Check the transaction figures and the balance of account in company code and business area BA. Why do you see only one balance of , EUR?

Did not all groups make their debit posting to this account? What happened to the postings of the other groups? General Ledger Accounting AC 2. What would you have to do in order to see the entire amount that was posted by all groups to this account during the last exercise? Display the line items of account for your business area, BA , only. Drill down on the balance display to see all line items that were posted to this account for your business area. Choose various line layouts in order to see additional information in the line item list.

Display your document. Go to the document display by drilling down on the line item display. Create a complex posting Post the same accounting transaction increase in capital as you did in Task 1 using the General posting transaction. Use document type SA. Run one of these reports. Find the balance of account What is the balance in your business area, BA? Run the balance sheet Run the balance sheet to see if the postings to your new account show up under a logical heading. Run the balance sheet for your account using financial statement version INT.

If your postings show up at the end of the balance sheet under Accounts not assigned, you must alter your financial statement version to include your new account. Run the balance sheet for the current posting period and company code Use financial statement version INT and the Classical list view.

View cost elements View the cost element for an expense account. Display account centrally. Accounting Transactions in the General Ledger Task 1: If you do not need to enter a company code, the company code has already been determined during the last posting made. Open the Screen variants for items folder. In the left column, select the With business area screen variant. Accounting Transactions — Processing in the General Ledger 1.

The Save icon becomes the Post icon when creating a transaction. If you want to display the last document posted, choose the following above from the posting screen: Or follow the full menu path given in step A below. The last document you posted should default into the Document number field. Choose Enter to see the document. Posting key indicates if the line item is a debit or credit Posting key for debit postings in the general ledger You see a balance of , EUR because you have limited the selection to your own business area, BA.

All other groups posted to different business areas. Since the transaction figures are kept per business area, you can view the account balance for just your business area. Accounting Transactions — Processing in the General Ledger Choose various line layouts in order to see additional information in the line item list.

Field Name Value Amount The balance in business area BA is , General Ledger Accounting AC your new account. The cost element is now displayed for account Do not change anything for this cost element; just observe it. A legal entity is represented by a in SAP. Fill in the blanks to complete the sentence. Key business segments are represented by in SAP. More than one company code can be assigned to a controlling area. To which chart of accounts must a company code be assigned in order for postings to occur?

The is assigned a number range. Reconciliation accounts can be posted to directly. The determines the structure of a balance sheet and an income statement report: This specifies which accounts correspond to which items in the report.

A document consists of two parts: A posting key allows posting to just one account type. When a document is posted, a number is assigned to that document. This number comes from number range assigned to the in the header of that document.

In order for information to pass over to the controlling module when posting to an expense account as part of an FI transaction, a must exist for the expense account that is being posted to.

When a transaction is posted in FI, it automatically appears on the balance sheet. A legal entity is represented by a company code in SAP. Key business segments are represented by business areas in SAP. True In order for this to occur, the company codes must have the same operating chart of account and fiscal year variant. C A company code must be assigned to an operating chart of accounts. In addition, a company code can be assigned to a country chart of accounts. The country chart is required for country-specific reporting.

An operating chart of accounts can be assigned to a group chart for consolidation purposes. The two segments are the chart of accounts segment and the company code segment. The chart of accounts report is a list of accounts for which the chart of accounts segment has been created. The account group is assigned a number range. False You can post to a reconciliation account only through a subledger account.

Quiz yourself for comprehension of course material before or after class. Labs Practice what you have learned on real equipment that replicates working with the top networking technologies, accessible from anywhere.

Course Schedule. Starts date: StartTime date: EndTime date: You still have items in your shopping cart Close. You are leaving with items in your cart. Thanks for Visiting. When you need to use one of these sessions later, you can restore it by selecting the appropriate symbol in the status bar. By minimizing the sessions you are not using, you can significantly reduce the system load.

After you are done using a session, it is a good idea to end it. Each session uses system resources that can affect how fast the SAP system responds to your requests. Before you end a session, save any data you want to keep. When you end a session, the system does NOT prompt you to save your data. Status Bar The status bar provides general information on the SAP system and the transaction or task on which you are working. At the left of the status bar, system messages are displayed.

The right end of the status bar contains three fields; one has server information, and the other two contain status information.

Pdf ac010 sap

Navigation AC Figure 6: The third status field specifies your data entry mode. You can display the help from any screen in the system. You can always request help using the Help menu or using the relevant icon. The Help menu contains the following options: Application help Displays comprehensive help for the current application.

SAP Library All online documentation can be found here. Glossary Allows a search for definitions of terms. Settings Allows you to select settings for help. Navigation AC Figure 7: Getting Help Use F1 for help on fields, menus, functions and messages. F1 help also provides technical information on the relevant field, including, for example, the parameter ID, which you can use to assign values to the field. Use F4 for information on what values you can enter.

You can also access F4 help for a selected field using the button immediately to the right of that field. If input fields are marked with a small icon with a checkmark, then you can only continue in that application by entering a permitted value.

You can flag many fields in an application to make them either required entry fields or optional entry fields. You can also hide fields using transaction or screen variants, or customizing. Navigation Figure 8: Field Help: Navigation Exercise 1: Task In this exercise, you will first create a log-in entry to identify which system you would like to gain access to.

You will then access that system with the appropriate client, user ID and password. You have now created a login entry. You will use this entry to gain access to the SAP system you have identified with the information provided.

Business Processes in Financial Accounting

Navigation AC Solution 1: Logging on to SAP Systems Task In this exercise, you will first create a log-in entry to identify which system you would like to gain access to.

There are a variety of ways to find it and a variety of places it could reside on your desktop. These variables depend on how the GUI software was installed. Consult your technical support if you cannot find the application. You might be asked to change your password, if so, continue with the following steps. If you are not asked, skip to solution step J. A password change dialog box displays. Navigation Exercise 2: Navigating Menus Exercise Objectives After completing this exercise, you will be able to: What are the names of the transactions that are located under the folder Order in Sales and Distribution?

What are the names of the transactions that are located under the folder Document Entry in General Ledger? Navigation AC Solution 2: Navigation Exercise 3: Task In this exercise, you will create a variety of transactions as favorites that will appear as favorites on your SAP Easy Access Navigation area.

This is transaction code F This is transaction code XD This is transaction code PA Navigation AC Solution 3: This Menu path is at the top of your window. Navigation Exercise 4: You would like to be able to store the Websites as favorites for quick access right from your SAP system.

Task You will create and save three Websites as favorites in the navigation area of your SAP system 1.

AC - Business Processes in Financial Accounting | SAP Training

Create as a favorite a link to the Website www. Navigation AC Solution 4: Navigation Lesson Summary You should now be able to: Determine whether this statement is true or false. True False 2. Which of the following is not part of the information required to log on to the SAP system? Choose the correct answer s. What menus are standard on all SAP screens? Which of the following provides general information on the SAP system and transaction or task you are working on? Test Your Knowledge AC 6.

List three types of online help that are available in the SAP system. False You can create up to six sessions. D You do not customize your settings until you are already logged on to the SAP system.

C The System menu contains functions that affect the system as a whole, such as Create session, User profile, and Log off. The Help menu provides various forms of online help. A The Status Bar contains information on system messages, as well as system information such as client, user, transaction codes and response time. D Favorites can consist of Web links, standard and customer transaction codes, and links to other files, such as Word documents or PowerPoint files.

SAP Library This is where all online documentation can be found. Glossary Enables you to search for definitions of terms. Settings Enables you to select settings for help. F1 Field level help that provides information about the field. F4 Field level help that provides a list of field values or, in the case of an extensive list, an option to search for the information.

We will first study key organizational elements in financial accounting. Many of the concepts learned in this unit will apply to other units in the course. Unit 2: Organizational Structures for Financial Reporting General Ledger Account Master Data Daily Accounting Transactions in the General Ledger Organizational Structures for Financial Reporting Lesson: The key Financial FI organizational elements we will discuss here are company code and business area.

We will study the options for assigning one or several company codes to a controlling area. Each company must fulfill national reporting requirements and is, therefore, represented by a company code. IDES includes a very diversified group of companies. Company Code Figure 9: Company Code A company code is an independent accounting entity the smallest organizational element for which a complete self-contained set of accounts can be drawn up.

An example is a company within a corporate group. A company code has a unique, four-character key, which can be alphanumeric. General Ledger Accounting AC The general ledger is kept at the company code level and is used to create the legally required balance sheets and profit-and-loss statements for the company code.

This is done either manually or automatically by deriving the company code from other data elements. Each affiliate company code is a legal entity that is required by law to provide financial records according to country-specific regulations. Each company code has a local currency. Amounts posted in foreign currencies are automatically converted to the local currency. They provide an additional evaluation level for the purpose of, for example, segment reporting. Use of business areas is optional.

IDES Business Areas Business areas are generally company-code independent; that is, you can make postings to them from any company code. The Business area field shows up as an additional account assignment when posting to an account as long as the field is turned on in configuration. The field can be made a required entry during posting. On the bottom of the slide, you can see the three business areas of the IDES group. If certain company codes are not active in specific business areas, you can use a validation to prevent postings to this business area from the company codes specified.

We will see the Business area field when we create postings in the next lesson. Controlling Area The controlling area is the key organizational element in the controlling application, which is the managerial accounting module.

A controlling area identifies a self-contained organizational structure for which costs and revenues can be managed and allocated. It represents a separate unit of cost accounting. One or more company codes can be assigned to a controlling area, which enables cross-company code cost accounting among the assigned company codes.

However, assigning more than one company code to the same controlling area is only possible if the assigned company codes all use the same operating chart of accounts and fiscal calendar year, called a fiscal year variant. Organizational Structures for Financial Reporting Exercise 5: Organizational Structures for Financial Reporting Exercise Objectives After completing this exercise, you will be able to: Task Controlling Area for Company Code Determine which controlling area company code is assigned to.

We will also discuss the reasons that a company code may need to be assigned to more than one chart of accounts. Charts of Accounts Each general ledger is set up according to a chart of accounts. Many country-specific charts of accounts are included in the standard system.

Chart of Accounts Assignment For each company code, you must specify one chart of accounts for the general ledger. This chart of accounts is assigned to the company code in configuration and is referred to as its operating chart of accounts.

A chart of accounts can be used by multiple company codes see diagram. This means that the general ledgers of these company codes have identical structures.

Figure You then create company code-specific settings, which are only valid in the company code. An example of a company code-specific setting is defining the account currency. Most of the accounts in company code use the UNI currency, whereas company code uses USD for most of its accounts. When the account currency is the local currency of the company code, one can post to that account in any currency. Accounts with the same account group normally have similar business functions.

You could, for example, have an account group for cash accounts, one for expense accounts, one for revenue accounts, and one for other balance sheet accounts. Account groups have a range of numbers assigned to them, which allows you to control which account numbers are allowed for cash accounts, for expense accounts, etc. That is, account groups control which fields are required for data entry, which fields are optional for data entry, and which fields do not show up at all in the company code segment.

Reconciliation Accounts Reconciliation accounts connect subsidiary ledgers with the general ledger in real time. This means that a posting to a subsidiary ledger posts to the corresponding reconciliation account in the general ledger at the same time. The subsidiary ledgers, which are connected to the general ledger via reconciliation accounts, are the accounts payable AP , accounts receivable AR , and asset ledgers. The financial statements for the company code are calculated using these transaction figures.

If using business areas, transaction figures are also kept per business area see slide. If you create a financial statement for the business area, the transaction figures for that specific business area are used to supply information for the financial statements. Financial Statement Version A general ledger is kept in order to provide the information needed to create a balance sheet and a profit-and-loss statement. These reports have to meet country-specific requirements. In these financial statement versions, you define exactly which accounts are to appear in which line items of the financial statement.

It was particularly important to the IDES board of directors that the European company codes — Germany, United Kingdom, Portugal and Spain — all belong to the same controlling area, since a great deal of activity takes place among these company codes. Therefore, all four company codes had to be assigned to the same operating chart of accounts INT.

However, Germany, the United Kingdom and Spain must report their financial reports to authorities in their countries using the country-specific chart of their country. In order for it to be possible for external reports to contain the account numbers used in those individual countries, a country-specific chart of accounts was created for those three company codes. These country-specific charts of accounts meet the requirements of the respective countries. General Ledger Accounting AC When a posting is made to the operating chart of accounts, INT, another posting is automatically made to the country chart that the company code is assigned to.

This is done using the Alternative account number field. The operating charts of accounts are assigned to this group chart in configuration. Once an operating chart has been assigned to a group chart, the Group account number field becomes required in the chart of accounts segment of the master record.

Each company code has its own complete general ledger, or list of accounts it can post to. In the general ledger, very few daily transactions are completed. Most of the daily transactions are completed in subsidiary ledgers, such as accounts receivable and accounts payable. The following exercises are to help you become more acquainted with master records in General Ledger Accounting. In order to learn how to create a journal entry, you will post an increase in capital for IDES Germany in the next lesson.

Task 1 Display the chart of accounts Display the chart of accounts report and then display the details of account within that chart. Display the chart of accounts INT. Display the details of account within the chart.