First Steps in SAP Financial Accounting (FI)

2.1 What is FI master data?

One fine morning I arrive at my local bank to deposit a check that I have received. Unfortunately, I have not remembered to bring a deposit slip, nor can I remember my account number. The teller must log into the bank system and find my account number. The record in the bank system that contains my name, address, other personal information, and my account number is known as master data. The master data represents (relatively) static information about me, but does not in any way reflect activity that has occurred or will occur in my account. When the teller processes my deposit, additional data is recorded in the bank system — transaction data. Without my master data, the deposit transaction could not be entered in the bank system. However, my master data may exist in the bank system for any period of time, even if there are never any transactions entered. Therefore, you can think of master data as descriptive information and of transaction data as activity information.

Many master data objects are required to post a general ledger transaction depending on the specific configuration of the SAP environment; the most common object required is a general ledger (or G/L) account.

2.1.1 G/L accounts

Section 1.2 introduced the concept of an account. Looking at types of accounts in more detail, a general ledger (or G/L) account is an excellent example of master data specifically related to the general ledger. A general ledger account must exist before transactions can be recorded. When a general ledger transaction is recorded, it includes a general ledger account number and an amount. The nature of the account is not included in the transaction record; instead, this information is included in a general ledger master file which contains a list of general ledger account numbers and descriptions.

You can think of a master file as a collection of index cards. Each card details the account number and a description of the account. Of course, in the SAP system, there are no physical index cards; instead, the cards or records are contained in data files. The master file record also contains other attributes for the account. For example, the general ledger master file contains information about the type of account (balance sheet or profit & loss), the currency the account is maintained in, etc.

A chart of accounts is a collection of accounts. SAP delivers sample charts of accounts and it is common for companies to copy a sample chart and edit it to meet the specific business requirements of the company. In addition, during the course of business, it is often necessary to make changes or create new accounts in the chart of accounts.

In this section we will explore the creation of G/L accounts in the chart of accounts.

Among the transactions that are used to display and/or change the chart of accounts, we will explore the following:

• Display, create, or change an account in the chart of accounts (FSP0)
• Display, create, or change an account assigned to a company code (FSS0 or FS00)

To change an existing account, we navigate to the G/L account from the SAP Easy Access menu:

Accounting • Financial Accounting • General Ledger • Master Records • G/L Accounts • Individual Processing • FSP0 – In Chart of Accounts

Let’s display the data for account 474240 in chart of accounts INT1. We enter the account number in the G/L Account field and the chart of accounts in the Chart of Accounts field and then click to display the data.

Figure 2.1: Displaying/editing a G/L account in a chart of accounts

Information about account 474240 in chart of accounts INT1 is now displayed. In Figure 2.2, we can see that the account is a profit and loss account for collecting other travel expenses. Had we chosen the editing icon , we would be able to make changes to attributes of the account.

Figure 2.2: Displaying a G/L account in a chart of accounts

Let’s create a new account, 474270 for travel expenses related to auto rentals, in chart of accounts INT1. We enter 474270 in the G/L Account field, INT1 in the Chart of Accounts field, and then click as shown in Figure 2.3. While we could have chosen to create the account, it is easier to copy the settings from an existing account (i.e., use a template) and then edit only the information that is different for our new account.

Figure 2.3: Creating a G/L account with a template

The SAP system now prompts you to enter the reference account (template) to be used for creating the account. Enter 474240 and chart of accounts INT1 and click to continue (Figure 2.4).

Figure 2.4: Entering the reference account

The text for the account to be created will need to be changed since it currently displays the text for account 474240 (Figure 2.5):

Figure 2.5: G/L account description

Change the text and then click in the toolbar at the top of the screen to save the changes. Figure 2.6 shows the amended text.

Figure 2.6: Changed G/L account description

A message confirms that the account has been saved (Figure 2.7):

Figure 2.7: Data saved message

If other languages are used in the chart of accounts, the system displays a reminder prompting you to check the names in the alternative languages (Figure 2.8). Save the record by clicking .

Figure 2.8: Messages displayed

If desired, from the account screen you can navigate to the Key word/translation tab and make changes to the text (Figure 2.9).

Figure 2.9: Changing the text for translation

Click at the top of the screen and a message appears indicating that the changes have been saved.

Adding a G/L account to a company code

We have added a new account, 474270, to our chart of accounts INT1; however, it is not yet available in any company code. We can add individual accounts to a company code by accessing transaction FSS0 for editing G/L accounts in a company code.

To do so, we navigate to the G/L account from the SAP Easy Access menu:

Accounting • Financial Accounting • General Ledger • Master Records • G/L Accounts • Individual Processing • FSS0 – In Company Code

Enter the new G/L account 474270 and company code 5401 and then click to create the account in the company code (Figure 2.10).

Figure 2.10: Creating an account in a company code

Note that the account number is displayed. Before we can create the account, we have to enter a field status group. Field status groups contain settings that determine which fields are required, optional, or suppressed when we post to the accounts. We will use the same field status group that was used for account 474240 in company code 5401. As shown in Figure 2.11, select the Create/bank/interest tab and enter G069 as the field status group. Save the entries by clicking .

Figure 2.11: Adding a G/L account to a company code, field status group

We may also want to create our account in the other company codes. Rather than repeat the steps above, we can choose to perform this activity using a template. Enter the account number, 474270, and company code (in our example we are now creating the account in company code 5402) and click (Figure 2.12).

Figure 2.12: Adding a G/L account to a company code with a template

When prompted for the reference account to be used, enter account 474270 from company code 5401 and then click to continue (Figure 2.13).

Figure 2.13: Entering the reference account

Note that the account information from company code 5401 has been copied to the record for company code 5402 (Figure 2.14). Click to save the entries.

Figure 2.14: Creating a G/L account in another company code

Editing an existing G/L account

There will often be a need to make changes to an existing account. A common change is blocking an account for posting when the company decides that the account should no longer be used. Let’s assume that the organization has decided that account 474290 should not be used in company 5402.

To block the account, we navigate to the G/L account from the SAP Easy Access menu:

Accounting • Financial Accounting • General Ledger • Master Records • G/L Accounts • Individual Processing • FSS0 – In Company Code

Enter the account and company code and then click to block the account (Figure 2.15).

Figure 2.15: Editing an existing G/L account

Select the Blocked for posting indicator and click to save the entries (Figure 2.16).

Figure 2.16: Blocking a G/L account for posting

We may also decide to flag the account for deletion by selecting (Figure 2.17).

Select the Mark for deletion indicator and then click to save the changes.

Figure 2.17: Flagging a G/L account for deletion

Editing a G/L account in a chart of accounts

There are many additional settings in a G/L account which control how the account is used. For example, there are settings that define what types of entries can be made to the account. We can access all of the settings by navigating to the G/L account from the SAP Easy Access menu:

Accounting • Financial Accounting • General Ledger • Master Records • G/L Accounts • Individual Processing • FS00 – In Chart of Accounts

As we have seen when creating and editing accounts on the previous pages, the account maintenance screens contain many tabs. The fields displayed on these tabs depend on whether we are editing a balance sheet account or a profit and loss account. Figure 2.18 compares the control data for each type of account.

Figure 2.18: Profit & loss account; Balance sheet account

Many of the attributes on the account maintenance screens control functionality which is beyond the scope of this book; however, a brief discussion of some fields is included below.

• Account Group
  An account group is a means of classifying accounts. For example, balance sheet, P&L, fixed assets, materials management, etc.
• P&L Statement Acct Balance Sheet Acct
  All accounts have either the P&L or balance sheet account selected. This indicator controls the balance carried forward at year-end.
• Short Text/Long Text
  Texts are used for online display and reports. The space allowed on a particular screen or report determines which variant is used.
• Account Currency
  It is possible for some accounts to have a different currency to the company code. For example, a US company might maintain a bank account in Canada and thus the account currency would be CAD. When a currency other than the company code currency is indicated, documents can only be posted in that currency. If the company code currency is used, documents can be posted in any currency.
• Recon. Account for Acct Type
  Reconciliation accounts are used for integrating subledgers with the general ledger. Examples are vendor, customer, or asset accounts.
• Open Item Management
  When this indicator is set, postings require one or more offsetting items to be posted to “clear” the open items. This is not the same as using reconciliation accounts — here there is no subledger. The setting is used for balance sheet accounts such as clearing accounts.
• Line Item Display
  This flag determines whether a user can display individual line items for the account. It should not be set for reconciliation accounts.
• Field Status Group
  Field status groups can be defined to identify rules for document entry. The rules determine whether various fields are optional, mandatory, or suppressed when postings are entered.
• Post Automatically Only
  If an account has this indicator selected, postings can only be entered by means of account determination (for example, from a valuation program) and you cannot enter a posting in the account using an online accounting entry.