436759834-GL-Comparioson-with-ECC-and-S4-HANA.pptx

436759834-GL-Comparioson-with-ECC-and-S4-HANA.pptx

1. GL Account Settings ECC 6.0 G/L Account Group The account group is a classifying feature within the G/L account master records. The account group is a required entry. The account group determines: The fields for the entry screens if you create or change a master record in the company code. Number interval the account number must be. P&L statement account type With the P&L statement account type, you determine the retained earnings account for each P&L account. The retained earnings account is used during year-end closing to calculate the company's result. If you are creating a P&L account, you must make an entry here. Dependencies If you determine during a fiscal year that you mistakenly designated a G/L account as a P&L account instead of a balance sheet account, you will need to change its master record. You will then have to rerun program SAPF011 to correct the balances of the G/L accounts carried forward. Type/Description

2. GL Account Settings ECC 6.0 Group Account Number When you define the balance sheet and P+L structures, then accounts are assigned to line items within the balance sheet and P+L. This assignment is made either via the G/L account number or alternatively via the group account number given in this field. The fields for the entry screens if you create or change a master record in the company code. Use The usage of the group account number offers the advantage that by specifying a number, a group of accounts can be assigned immediately to the balance sheet or P+L item. If a balance sheet or P+L structure is to be defined which is to be used for several company codes with different charts of accounts, the problems which are created as a result can be avoided by using the group account number so that: •accounts with the same meaning have different account numbers •accounts with the same account number have different meanings and, if necessary, are to be assigned to different line items in the balance sheet or P+L. Type/Description – Contd.

3. GL Account Settings ECC 6.0 Account currency The account currency indicates the currency in which this account is held. If a currency other than the company code currency is specified, users can only post items in that currency to this account. (An exception to this is exchange rate differences resulting from valuating G/L account balances.) If the company code currency is specified, users can post items in any currency to this account. Balances in Local Currency Only Indicates that balances are updated only in local currency when users post items to this account.You would set this indicator for accounts in which you do not want the system to update transaction figures separately by currency. Setting this indicator for accounts managed on an open item basis affects the clearing procedures. Set the indicator in cash discount clearing accounts and GR/IR clearing accounts. It cannot be set in reconciliation accounts for customers or vendors. Setting it in all other instances is optional. It is usually set for particular balance sheet accounts including: •Accounts which are not managed on an open item basis and not kept in foreign currencies. •Accounts which are managed on an open item basis and have the same types of items posted in different currencies, but always allow clearing to be made if the local currency amounts correspond. Control Data

4. GL Account Settings ECC 6.0 Balances in Local Currency Only Examples You set up a clearing account for goods receipts and invoice receipts and manually post these items to it. You post invoice receipts in the invoice currency and goods receipts always in the local currency. Invoice receipt 1000 DEM 600 USD Goods receipt 600 USD Both items can be cleared if the clearing account balances are recorded in local currency only. If you have not set the indicator for this account, the system will translate DEM to USD during the clearing procedure in order to determine the amount in USD required to clear 1000 DEM. If the translation rate is .65 USD per DEM, then the system displays 650 USD for the invoice receipt and 600 USD for the goods receipt when the open items are processed. This means that to clear both of these items, you will also have to enter a difference posting for 50 USD, and the system will automatically make an additional exchange rate difference posting for this amount. Control Data – Contd.

5. GL Account Settings ECC 6.0 Exchange rate difference key Key for account determination in valuating foreign currency amounts posted to balance sheet accounts. Use For the valuation of foreign currency balances, the system uses this key to find the accounts for gains and losses from the valuation. You specify which accounts valuation differences are to be posted to under the exchange rate difference key in the system. Example You could have valuation differences posted to the same P&L account for all balance sheet accounts or to different accounts based on the currency. Control Data – Contd.

6. GL Account Settings ECC 6.0 Valuation Group A valuation group can include a number of different G/L accounts. The exchange rate type is determined from the foreign currency total when the valuation is carried out. The valuation groups can therefore be seen as an equivalent to the corporate group concept, except for customers and vendors. Valuation groups are freely definable, e.g. "Accounts at Citibank" "CITIB". Tax Category Determines whether the following apply to the G/L account: •Is it tax-relevant? •Is it a tax account? •Is it a tax-relevant G/L account? Tax-relevant account: You decide whether you want to use the account for tax-relevant postings. If not, leave the field blank. Tax account: You decide whether you want to use the account exclusively for posting taxes. Define the type of tax on sales and purchases you want to use the account for: < Input tax account : < Output tax account : ">" and "<" are only supported for tax accounts. Control Data – Contd.

7. GL Account Settings ECC 6.0 Tax Category Tax-relevant G/L account? You decide whether you want to use the account as a G/L account to which you make tax-relevant postings. Define the tax code which can be used to post to the account. When posting to this account, the system then checks whether the tax code in the line item is permitted for this account. This is useful if you always post to this account using the same tax rate. When you post to this account, the tax code is defaulted and can no longer be changed (for example, the account Domestic trip costs taxed flat rate in Germany). If you only want to carry out a flat-rate check for the tax category, choose one of the following special characters: + Only output tax permitted - Only input tax permitted * All tax types permitted If the G/L account is then posted to, you must enter a tax code. This does not apply if you also permit postings without tax code to the G/L account and use your own code instead. Control Data – Contd.

8. GL Account Settings ECC 6.0 Posting without Tax allowed Indicates that the account can still be posted to even if a tax code has not been entered. If you do enter a tax code when posting to this account, the system checks the entry against the tax category It should be possible to post both taxable and non-taxable items to an account. You would usually set up a separate tax code for the non-taxable transactions. When taxes are entered using jurisdiction codes, however, this separate tax code cannot be used since jurisdiction codes cannot be specified for foreign customers. In this case, you allow users to post items without tax codes in the corresponding expense and revenue accounts. You do not need a tax code postings in invoice verification since the account assignments are generally derived from the purchase order. The system therefore disregards the tax code when these postings are made. Dependencies The system does not generate tax information for items which do not have a tax code. It will exclude these items from tax evaluation lists. Control Data – Contd.

9. GL Account Settings ECC 6.0 Recon. account for acct type An entry in this field characterizes the G/L account as a reconciliation account. The reconciliation account ensures the integration of a subledger account into the general ledger. Examples: G/L account 140000 is defined as a reconciliation account. In the customer account 4711, the G/L account 140000 is determined as a reconciliation account. In this way, all postings to customer account 4711 are also posted automatically to the G/L account 140000. The G/L account itself is not designed for direct posting. In this way, a reconciliation between subledger and general ledger is always guaranteed. Alternative Account Number The alternative account number field in the company code area is freely definable. You could use it to enter: •the account number from your legacy system or •the account number from a country chart of accounts if your corporate group uses a standard chart of accounts. The alternative account number is only issued in the financial statement if you explicitly assign it to the relevant items in the financial statement version. Control Data – Contd.

10. GL Account Settings ECC 6.0 Open Item Management Determines that open items are managed for this account. Items posted to accounts managed on an open item basis are marked as open or cleared. The balance of these accounts is always equal to the balance of the open items. Set up accounts with open item management if offsetting entries are to be assigned to the postings made to these accounts. Postings to these accounts represent incomplete transactions. Example: A goods receipt/invoice receipt (GR/IR) clearing account should be managed on an open item basis so that you can check at any time whether invoices have been received for the goods received for an order. Set up accounts without open item management if no offsetting entry is to be made against a posting to this account. Examples: Accounts that are managed on an open item basis include: •Clearing accounts ◦Bank clearing account ◦Payroll clearing account ◦Cash discount clearing account ◦GR/IR clearing account Accounts that are not managed on an open item basis: •Bank accounts •Tax accounts •Raw material accounts •Reconciliation accounts These are managed implicitly using the subledger open item function. •Profit and loss accounts •Materials Management (MM) accounts posted with a posting key that has account type 'M' Control Data – Contd.

11. GL Account Settings ECC 6.0 Line Item Display Enables line item display for the account. For each line item, an entry is saved in an index table. This entry contains the connection between the line item and the account. In the New General Ledger, line item display is always possible for the general ledger view. You have to set this indicator if you - Also want to see the line items in the entry view - Want open item management Procedure: You should not set the indicator for accounts where line item display in dialog does not make sense due to the number of postings. These include: •Tax accounts • Receivables • Payables •Specific revenue and expense accounts Control Data – Contd.

12. GL Account Settings ECC 6.0 Sort Key Indicates the layout rule for the Allocation field in the document line item. The system uses a standard sort sequence for displaying line items. Among other things, it sorts the items according to the content of the Allocation field. This field can be filled either manually or automatically (by the system) when a document line item is entered. For this purpose, the system requires rules that determine which information is to be taken from the document header or from the document line item and placed in the field. The rules can be stored in the master record of an account which enables you to determine the standard sort sequence on an account-specific basis. Authorization Group The authorization group allows extended authorization protection for particular objects. The authorization groups are freely definable. The authorization groups usually occur in authorization objects together with an activity. Accounting clerk Identification code for the accounting clerk.The name of the accounting clerk defined by this identification code can be used in the payment program for correspondence and reporting (for example, open item lists). Control Data – Contd.

13. GL Account Settings ECC 6.0 Field Status Group Determines the screen layout for document entry. Fields can have the following statuses: •Optional entry - you can enter data in the field •Mandatory entry - you must enter data in the field •Suppressed - the field does not appear on the screen Use: Enter the field status group in the master record of a G/L account. When you enter a document, the definitions stored for the group are effective. Dependencies: The field status when you create a document also depends on the posting key. The field status groups available are those grouped together in a field status variant and assigned to your company code. Post Automatic Only Indicates that this account can only be posted to by the system using account determination tables. Create/Bank/Interest

14. GL Account Settings ECC 6.0 Supplement Auto postings Indicates that line items which are generated automatically by the system for this account can be supplemented manually. Examples: You set this indicator for the G/L account for bank charges. If you post an incoming payment which contains bank charges, the system automatically generates a line item for these charges and displays the document overview screen where you can select the line item and supplement it with an account assignment. You could then assign the bank charge to a cost center, for example. Dependencies If you have created a cost center in Controlling for this G/L account, you must also define an account assignment in Enterprise Controlling. To do this, choose the activity "Assign revenue elements to profit centers".. Recon acct ready for input Indicator which determines that the reconciliation account is ready for input when posting a document. Use: The indicator is used in Financial Assets Management. Create/Bank/Interest - Contd

15. GL Account Settings ECC 6.0 Key Word/Translation

16. GL Account Settings ECC 6.0 Information in COA

17. GL Account Settings ECC 6.0 Information CoCd

18. GL Account Settings ECC 6.0 G/L Account Type Specifies the general ledger account type that classifies the general ledger account. The general ledger account type determines how the general ledger account can be used in financial accounting (FI) and controlling (CO). The following values are possible: •X - Balance Sheet Account Balance sheet account •N - Nonoperating Expense or Income Profit and loss account that is used in FI only •P - Primary Costs or Revenue Profit and loss account that is used in FI and CO •S - Secondary Costs Profit and loss account that is used in CO only Type/Description

19. GL Account Settings S4/HANA Account Group The account group is a classifying feature within the G/L account master records. The account group is a required entry. The account group determines: The fields for the entry screens if you create or change a master record in the company code. Number interval the account number must be. P&L statement account type With the P&L statement account type, you determine the retained earnings account for each P&L account. The retained earnings account is used during year-end closing to calculate the company's result. If you are creating a P&L account, you must make an entry here. Dependencies If you determine during a fiscal year that you mistakenly designated a G/L account as a P&L account instead of a balance sheet account, you will need to change its master record. You will then have to rerun program SAPF011 to correct the balances of the G/L accounts carried forward. Type/Description – Contd.

20. GL Account Settings ECC 6.0 Group Account Number When you define the balance sheet and P+L structures, then accounts are assigned to line items within the balance sheet and P+L. This assignment is made either via the G/L account number or alternatively via the group account number given in this field. The fields for the entry screens if you create or change a master record in the company code. Use The usage of the group account number offers the advantage that by specifying a number, a group of accounts can be assigned immediately to the balance sheet or P+L item. If a balance sheet or P+L structure is to be defined which is to be used for several company codes with different charts of accounts, the problems which are created as a result can be avoided by using the group account number so that: •accounts with the same meaning have different account numbers •accounts with the same account number have different meanings and, if necessary, are to be assigned to different line items in the balance sheet or P+L. Type/Description – Contd.