GeneralLedger En

General Ledger: Component Manufacturer

October 14, 2009 Page 1 of 20

General LedgerComponent Manufacturer Reference System


Copyright

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Icons

Icon Meaning

Caution

Example

Note

Recommendation

User ID and User Role

Work Center and Work Center View



Table of Contents

1 About this Document 41.1 Purpose 41.2 Trial System and Reference Company 4

2 Business Scenario Overview 52.1 Introduction 52.2 Scenario Outline for Akron Manufacturing & Wholesale Ltd. 6

2.2.1 Scenario Outline for General Ledger 63 Business Process Tasks 8

3.1 General Ledger Posting 83.1.1 Direct Posting to Sub-Ledger Account 83.1.2 Post Accrual Expense 103.1.3 Define and Post Recurring Journal Entry Vouchers 11

3.2 Audit Work Center 133.3 Check Financial Postings (Optional) 13

4 Scenario Quick Guide 154.1 General Ledger Posting 154.2 Audit Work Center 18

5 Appendix 195.1 Reports 19



1 About this Document

1.1 PurposeThis business scenario document allows you to quickly become familiar with the businessscenario General Ledger and at the same time provides enough detailed information todevelop a sound understanding of the business processes that make up this scenario.

Moreover, this document can be used by SAP Business ByDesign users to guide themthrough the steps they need to carry out for the General Ledger business scenario in theComponent Manufacturer reference system.

1.2 Trial System and Reference CompanyYour personalized trial system is preconfigured and loaded with fictitious users and sampledata. The users and sample data are based on the model company for ComponentManufacturer, Akron Manufacturing & Wholesale Ltd.. By following the step-by-stepinstructions given later in this document, you can assume the identity of the Akron users anduse the built-in sample data to carry out each of the business process tasks. This hands-onexperience will help you to understand the relevance and benefits of General Ledger inComponent Manufacturer.

To learn more about the model company that uses the business processesdescribed in this document, read the Company Profile document, which contains ageneral description of the reference company, its organizational set up, itsemployees and of the different roles and work centers, as well as a comprehensiveoverview of the master data used in your system.

You can find the Company Profile in the Help Center of your reference system. Inthe Home Work Center, choose Help Open Help Center.



2 Business Scenario Overview

2.1 IntroductionGeneral ledger accounting records the value changes that result from the businesstransactions and transforms the information into structured financial data according to thecountry’s legal accounting regulations. The general ledger accounting provides the base forstatutory legal reporting.

The seamless integration of financial accounting with all other operational areas ensures thatmost of the journal entries are posted automatically. Furthermore, general ledger offersflexible manual posting possibilities, such as:

Direct posting to sub-ledger

Manual posting

Recurring journal entries

Furthermore, the work center Audit can be used to view all financial data and also serves toassist the auditor’s auditing purpose.



2.2 Scenario Outline for Akron Manufacturing &Wholesale Ltd.

2.2.1 Scenario Outline for General Ledger

General LedgerGeneral Ledger Posting

Direct posting tosub-ledger

account1

Financial Accountant

Post accrualexpense2

The accountant postsaccrual expensemanually.


General Ledger

Recurring journalentry voucher3

The accountant definesrecurring journal entryvoucher so that theposting will be doneautomatically.


General Ledger

The accountant postsbad debt againstaccounts receivablesallowance.

General Ledger

ProcessUserWork center

FormFinancialPosting

Manual Entry forAccounts Receivable

Manual Posting -Journal EntryVoucher

Accruals forInsurance



General LedgerAudit Work Center

The auditor logs intosystem and checksfinancial data in theAudit work center.

Auditor checksfinancial data via

work center“Audit”

1

Auditor

Audit

ProcessUserWork center

FormFinancialPosting

According to the company’s financial policy, allowance for doubtful accounts receivablesaccount is updated regularly. The accountant finds out now that one customer cannot pay oneof the open customer invoice. So the accountant posts off the open account receivable item.

Furthermore the accountant makes expense accrual for the whole year insurance expense.The accrual posting is simplified by using the recurring journal entry.

During year-end auditing, the auditor can access the Audit work center to view financial data.



3 Business Process Tasks

3.1 General Ledger PostingIn this section, we cover business process tasks that are relevant to general ledger posting.

The process alternatives described above contain many of the same businessprocess tasks. To avoid repetition, detailed instructions are only provided once foreach task. If you are only interested in one of the variants, you may not wish tocomplete all of the tasks.

Please keep it in mind that any manual posting made for UK-GAAP will not beposted automatically into IFRS COA .So if you perform any manual postingactivities, make sure that you manually post the accounting voucher to IFRS too!

3.1.1 Direct Posting to Sub-Ledger Account

Overview

In the General Ledger work center, you can make manual posting directly to sub-ledger.

Before You StartAccess the system using the following user and work center information:

Logon ID / Role Work Center / View

FINANCIAL02UK General Ledger

Financial Accountant / David Nash Common Tasks

Prerequisite

1. According to the company’s policy, the accountant updates the Allowance for DoubtfulAccount Receivables account regularly (once or twice a year, for instance).

2. The posting is made in the General Ledger work center. Under Common Tasks, clickNew Journal Entry Voucher.

Tab or Field Name Field Value or Description Comment / User Action

Text Allowance for Doubtful AR

Journal entry type: 0047

Select screen variant 601 - Journal Entry Voucher

Account 700060 – Bad Debt Expense fromspecial provision

Debit in TransactionCurrency

E.g 2000 It shall be calculatedaccording to yourcompany’s financialpolicy. You may take1.5% of the open accountreceivables as allowance.

Account 140065 –General doubtful debtprovision



Credit in TransactionCurrency

E.g. 2000

Now it is clarified, that one customer could not pay one of the open customer invoice ID < x >fully, the accountant adjusts the open item by posting directly to sub-ledger.

Procedure

1. Select New Journal Entry Voucher and enter the following data:


Company 10-1000

Set of Books 1000

Journal Entry Type 00085 – Manual Entry forAccounts Receivables

Text Doubtful Allowance forReceivables <current month_current year>

Select Screen Variant 628 – Manual Write-Up/Write-Down Accounts Rec.

2. Click Add Row and enter the following data:


Account 140000 – Accounts Receivables


The invoice amount You may enter theinvoice amount after youhave selected the invoice

Enter Item Details Select this box

Customer C100110

Source Document ID Select one customer invoiceID,<x>

Source Document Type 28 – Customer Invoice



General Ledger Account 140065 –General doubtful debtprovision


The invoice amount

4. Click Simulate and check the result, then click Back.

5. Click Post and Save, then click Close.

Result

A sub-ledger account is directly posted.

It is necessary that within the Chart of Account, Financial Statement, AccountDetermination fine tuning option, the general ledger accounts, to which a direct



manual posting shall be allowed, has been set as “All Posting Allowed” in the GLAccount Posting Block column.

3.1.2 Post Accrual Expense

Overview

In the document Payables - Enter Supplier Invoice without Reference, a supplier invoicefor whole year insurance expense has been posted. However, in order to determine cost inthe correct accounting period, the expense shall be accrued.

In the General Ledger work center, you can post accrual expense.

Before You Start

Access the system using the following user and work center information:

User ID / Role Work Center / View


Financial Accountant / David Nash Common Tasks

Procedure

1. Under Common Tasks, click New Journal Entry Voucher and enter the following data:


Company 10-1000

Set of Books 1000

General doubtful debtprovision

0047

Text Accrual of insurance expense



Account 144030 –Prepayments


xxx GBP Please refer to the wholeinsurance expenseamount in the supplierinvoice.



Account 605030 –other Maintenance cost


xxx GBP Please refer to the wholeinsurance expenseamount in the supplierinvoice.



Cost Center 10-1100

4. Click Simulate and Post and Close.

Result

The accrual of insurance expense is posted. Furthermore, the accrued expense will beallocated into all relevant accounting periods. To simplify the manual work, a recurring journalentry voucher can be defined.

Attention: the accrual posting should follow business sense. A supplier invoicefor the whole year insurance should happen only once per year, then thecorresponding accrual posting will be made only once.

For your testing purpose, you may consider other accrual expense cases if the documentedbusiness case exists already in your system. It is always recommended to enter supplierinvoice for the expense firstly, then make the accrual posting with the correct general ledgeraccount.

3.1.3 Define and Post Recurring Journal Entry Vouchers

OverviewAfter you have posted the accrual as described above, you can in the General Ledger workcenter post recurring journal entries.

Before You Start




Financial Accountant / David Nash Journal Entries

Procedure

1. Under Journal Entries Views, choose Recurring Journal Entry Vouchers. Click New,then choose New Recurring Journal Entry Voucher and in the view of Define Templatefor Recurring Journal Entry Voucher, enter the following data:


Company 10-1000

Set of Books 1000

Text Recurring journal entry vouchers

Recurring Journal EntryVoucher Type

Accruals for Insurances





Account 605030 – other Maintenance cost

Cost Center ID 10-1100


Total Insurance Expense / 12



Account 144030 –Prepayments


Total Insurance Expense / 12

4. Click Next and in the view of Define Recurrence Pattern enter the following data:


Recurrence Pattern Select this item

Start Date Current date

End By Date

End Date The current date in 12 months

Recurrence Monthly

Every 1 Month

Day of Month Last Day

5. Click Next and Next again, then click Finish and Close the window.

6. In the Periodic Tasks view, under Periodic Tasks Views, click Post Recurring JournalEntry Vouchers and click New, then choose Recurring Journal Entry Voucher Run andenter the following data:


Description New Recurring Journal EntryVoucher Run <Month_year>

Company ID 10-1000


Accruals for Insurances

Date CalculationFunction Code

Scheduled Execution Date

7. Click Activate and click OK to close the screen.

On the defined date to post recurring journal entry, you can follow the stepsbelow to post a journal entry.

1. Under Journal Entries Views, click Recurring Journal Entry Vouchers.

2. Highlight the recurring journal entry voucher ID and click Actions, then choose Post.3. In the Journal Entries view, under Journal Entries Views, click Journal Entries and

in the Show list, choose Today’s Postings, you can find out the scheduled postingsare done.

Result



The recurring journal entry template is defined and the first journal entry is posted. All otherscheduled journal entry vouchers will be posted on the scheduled posting date.

You define only one template for a certain kind of recurring posting at thebeginning, then in the defined time period, you will only execute the posting steps. Ifyou want to test how to define a template, please define your own template. It is notcorrect if you define the same template described above for the same time period.

3.2 Audit Work Center

Overview

A service agent has been defined and granted with the user “AUDITOR” to enable externalauditors’ auditing work.

Before You Start



AUDITORUK Audit

Auditor / Jonathan Brown Overview

Procedure

In the Audit work center, the auditor can access the financial work centers, (e.g. GeneralLedger, Fixed Assets, etc.) to view all necessary financial data.

Result

The auditor can view financial data.

3.3 Check Financial Postings (Optional)

OverviewFully integrated and automated financial accounting is one of the key capabilities of SAPBusiness ByDesign. Providing financial master data has been correctly defined and therequired fine tuning settings for account determination has been adjusted, journal entries willbe posted automatically. Authorized users can check and monitor these postings any time.

Before You Start






Financial Accountant / David Nash Journal Entries

Procedure1. Under Journal Entries Views, click Journal Entries.

2. In the Show list, choose Today’s Postings. Alternatively, choose Last 3 Day’s Postingsor All Postings.

3. In the Group By list, choose Journal Entry Type and click Go.

All different journal entries are listed (e.g. Customer Invoice, Goods Issue for Customer,Internal Service Confirmation, Supplier Invoice, Check Deposit).To identify the relevant accounting postings for this scenario, refer to the scenario outlinediagram, where the different posting types are mentioned and assigned to the respectiveprocess steps.

4. Click Advanced to limit your search criteria to the documents you want to check.

5. Enter the following data:


Source Document Enter the previously createdsource document ID

Source Document Type Select the respective sourcedocument type, e.g. CustomerInvoice, Supplier Invoice

Click Go

6. Click View to see the details of the posting.

7. Select the Document Flow tab to view the complete document history.

8. Click Close.

ResultThe completeness and details of the financial postings have been checked including thecomplete document flow.



4 Scenario Quick GuideThis section summarizes the entire process and provides all the master data that you need torun it. If there is more than one process alternative, additional tables will be provided.This chapter is intended as a quick reference for experienced users who have understood thebasics of the business process and have already completed the scenario.

In case you are not familiar with the scenario flow yet, please refer to the Business ProcessTasks section of this document, where we provide detailed instructions explaining how youcan run through the scenario step-by-step.

4.1 General Ledger Posting

Parameter Data to Enter DataDescription/ Activity

Comment My OwnDataCreated

Direct Posting to Sub-Ledger AccountUser FINANCIAL02UK Financial

Accountant

Work Center General Ledger Common Tasks New Journal

Entry Voucher

According to the company’s policy, the accountant updates the “Allowance for Doubtful Account Receivables accountregularly (once or twice a year, for instance). The posting is made to the general ledger via manual journal entryvoucher.

Dr: 700060 – Bad Debt Expense from special provision

Cr:140065 – General Allowance for doubtful Debt Accounts

It is clear now, that one customer could not pay one of the open customer invoice ID < x > fully and negotiated for adeduction of open item, the accountant adjusts the open item by posting directly to sub-ledger.

Company 10-1000

Set of Books 1000

Journal Entry Type 00085 – Manual Entryfor AccountsReceivables

Text Doubtful Allowance forReceivables

Select Screen Variant 628 – Manual Write-Up/Write-DownAccounts Rec.

Add Row

Account 140000 – AccountsReceivables

Transaction CurrencyCredit Amount

Invoice amount

Enter Item Details Check

Customer C100110

Source Document ID Select the customerinvoice ID,<x>

Source Document Type 28 – Customer Invoice

Add Row





Account 140065 – GeneralAllowance for doubtfulDebt Accounts

Transaction CurrencyDebit Amount

Equals to CreditAmount

Simulate

Back

Post

Post Accrual Expense

Supplier Invoice for insurance expense was entered into system already. (refer to FIN_Payables “EnterSupplier Invoice without Reference”)

User FINANCIAL02UK FinancialAccountant

Work Center General Ledger Journal Entries Journal

Entries ViewsJournal EntryVoucher

Company 10-1000

Set of Books ID 1000

Add Row

Account 144030 – PrepaidExpenses


<insurance supplierinvoice amount> GBP

Add Row

Account 605030 –otherMaintenance cost


<insurance supplierinvoice amount> GBP


Post

This posting is applicable only when you have already posted expense / revenue element and need to accrual it.

Post Recurring Journal Entry VouchersUser FINANCIAL02UK Financial

Accountant

Work Center General Ledger Journal Entries Journal

Entries ViewsRecurringJournal EntryVouchers

Define Template for Recurring Journal Entry Voucher





Company 10-1000

Set of Books ID 1000

Text Recurring journal entryvouchers


Accruals for Insurance

Add Row

Account 605030 –otherMaintenance cost



Total InsuranceExpense / 12

Add Row

Account 144030 – PrepaidExpenses


Total InsuranceExpense / 12

Next

Define Recurrence Pattern

Recurrence Pattern Select this item

Start Date Current date

End By Date

End Date The current date in 12months

Recurrence Monthly

Every 1 Month

Day of Month Last Day

Next

Next

Finish

New Posting of Due Recurring Journal Entry Vouchers

Periodic Tasks Periodic

Tasks ViewsPost RecurringJournal EntryVouchers

Description New Recurring JournalEntry Voucher Run<month_year>





Company ID 10-1000


00100 – Accruals forInsurances

Date CalculationFunction Code

52 – ScheduledExecution Date

Active

Journal EntriesViewsRecurringJournal EntryVouchers

Select your recurringjournal entry voucher ID<>

Actions Post

Due by <current date> Post

Now, under “Journal Entries Today’s Posting” you can find out the scheduled postings are done.

4.2 Audit Work Center


ExistingTransactionalData

My OwnDataCreated

Auditor Reviews Financial DataUser Auditor Auditor

Work Center Audit

Check relevantdata



5 Appendix

5.1 Reports Access the report using the following user and work center information:



Financial Accountant / David Nash Reports

1. Open Journal, and click OK.

2. Open General Ledger Line Item, and click OK.



Documents

GeneralLedger En