Financial Accounting and Management Accounting: Overview

Transcription

1 UNIT 4 Financial Accounting and Management Accounting: Overview Lesson 1 Explaining Financial Accounting (FI) 94 Lesson 2 Explaining Management Accounting (CO) 103 Lesson 3 Outlining the Integration Between FI and CO 106 UNIT OBJECTIVES Explain Financial Accounting (FI) Explain Management Accounting (CO) Explain the integration between FI and CO Copyright. All rights reserved. 93

2 Unit 4 Lesson 1 94 Explaining Financial Accounting (FI) LESSON OBJECTIVES After completing this lesson, you will be able to: Explain Financial Accounting (FI) Financial Accounting Overview Figure 66: Financial Supply Chain Begin the discussion with an introduction to the general ledger (G/L). The central task of General Ledger Accounting is to provide a comprehensive picture of external accounting and financial records. The G/L serves as a complete record of all business transactions. Accounts payable (AP) records and manages the accounting data for all vendors. It is also an integral part of the purchase-to-pay business process. Postings made in (AP) are simultaneously 94 Copyright. All rights reserved.

3 Lesson: Explaining Financial Accounting (FI) recorded in the G/L based on the AP transaction involved, for example, payables and down payments. Accounts receivable (AR) records and manages accounting data of all customers. It is also an integral part of the order-to-cash business process. All postings in (AR) are also recorded directly in the G/L depending on the (AR) transaction involved, for example, receivables, down payments, and bills of exchange. Asset Accounting (AA) is used for managing and supervising fixed assets. AA serves as a subsidiary ledger to the FI G/L, providing detailed information on transactions involving fixed assets. Bank Ledger (FI-BL) is used to handle accounting transactions that are processed through a bank. It includes the management of bank master data, cash balance management (check management and bill of exchange management), and the creation and processing of incoming and outgoing payments. Every posting that is made in the subledgers generates a corresponding posting to the assigned G/L accounts. This ensures that the subledgers are always reconciled with the G/L. The central task of General Ledger Accounting is to provide a comprehensive picture of external accounting and financial records. The General Ledger (G/L) serves as a complete record of all business transactions. In addition to the G/L, you can use subledgers for customers, suppliers and so on. Every posting that is made in the subledgers generates a corresponding posting to the assigned G/L accounts. This ensures that the subledgers are always reconciled with the G/L. The important tasks of Financial Accounting (FI) are the recording of monetary and value flows, and inventory evaluation. The G/L contains the records of all accounting-relevant business transactions on to G/L accounts from a business point of view. Every G/L is structured according to a chart of accounts. The chart of accounts contains the definitions of all G/L accounts. These definitions include the account number, the G/L account designation, and the categorization of the G/L account as an income statement or a balance sheet account. The G/L often contains only collective postings, a collection of all AR/AP. In such cases, the posting data represented in subledgers pass on their data in compressed form to the G/L. Reconciliation accounts connect the subledgers to the G/L in real time. This means that as soon as a posting is made to a subledger, the posting to the respective reconciliation account in the G/L takes place. Accounts payable (AP) records all business transactions relating to suppliers. It takes much of its data from the procure-to-pay business process. Accounts receivable (AR) records transactions and manages accounting data of all customers. It takes much of its data from the order-to-cash business process. Asset Accounting (AA) deals with both current assets and non-current assets (fixed assets). Bank Ledger (FI-BL) supports the booking of cash flows. Copyright. All rights reserved. 95

4 Unit 4: Financial Accounting and Management Accounting: Overview Stakeholders of Financials Figure 67: Stakeholders of Financials Financials can be subdivided in two major parts: Financial Accounting (FI) and Management Accounting. Financial Accounting has the task to meet legal requirements. The main tasks are as follows: Post all financial transactions, revenues, and expenses. Keep them unchanged in the system for reporting purposes. Allow the setting up of a profit and loss statement and a balance sheet to fulfill the legal requirements of a country or of a financial reporting standard. Financial Accounting is subject to legal requirements of a country, and, in addition, to requirements of certain financial reporting standards, such as US Generally Accepted Accounting Principles (GAAP), International Financial Reporting Standards (IFRS), and Handelsgesetzbuch (HGB). The stakeholders of such financial reportings are outside the companies, for example, suppliers, banks, tax government, and so on. Management Accounting is an internal tool for controllers and the Management reporting. The main tasks are as follows: Reflect cost and revenues. Analyze cost variances and inefficiencies in the company and in production processes or service processes. Provide results for individual cost objects, such as cost centers, cost objects, and market segments. Provide data for cost center managers, project managers, and other employees to fulfill their tasks. 96 Copyright. All rights reserved.

5 Lesson: Explaining Financial Accounting (FI) Because controlling is internal, you may use different values than used in FI. Additional cost (imputed costs) can be used in addition, some cost (neutral cost) can be excluded, different prices (transfer prices) can be used to valuate cost of purchased goods or cost of goods manufactured different. The stakeholders of such management reportings are only inside the companies, for example, cost center managers, project mangers, sales representatives, and so on. General Ledger and Subledger Figure 68: General Ledger and Subledger The G/L is managed at the company code level. All accounting-relevant transactions made in Logistics (LO) or Human Resources (HR) are posted in real time to FI by means of automatic account determination. The aim of recording business transactions is to create a balance sheet and profit and loss (P&L) statement. The G/L is managed at the company code level and used to compile the balance sheet and the profit and loss (P&L) statement. The material goods of a company are listed in the balance sheet, and are divided into assets and liabilities. The business transactions that are entered in the subledgers, materials management, and the Treasury flow into the balance sheet in real time. The component, Treasury (TR), focuses on functions, such as payment means, treasury management (including financial means, foreign exchange, derivatives, and bonds), loans, and market risk management. Copyright. All rights reserved. 97

6 Unit 4: Financial Accounting and Management Accounting: Overview Balance Sheet and P&L Statement Figure 69: Balance Sheet and P&L Statement The aim of recording business transactions is to create a balance sheet and P&L statement report. This report must meet specific national requirements or requirements of used financial reporting standards. You can set up different balance sheet and P&L structures (financial statement versions) to meet reporting requirements of your country or your used financial reporting standards. These structures define which accounts should appear in which balance sheet items. Parallel Financial Reporting Figure 70: Parallel G/L Ledger 98 Copyright. All rights reserved.

7 Lesson: Explaining Financial Accounting (FI) General Ledger Accounting has one leading ledger in each client. However, other ledgers can also exist within the G/L, for example, to provide different ledgers for different accounting reporting standards. In G/L Accounting, one ledger has the role of a leading ledger. However, as in older systems, you can still deal with different reporting standards by using additional (parallel) accounts. Financial Accounting Versus Management Accounting Figure 71: Financial Accounting Versus Management Accounting Use this example to introduce the participants to Management Accounting (Controlling). During the current period, management asks you for the balance in the travel expense account of Company X. You query the G/L account and report that the travel expense of Company X in the current period is $XXXX. After you provide this figure, management then wants to know who incurred that travel expense or where it was incurred. Management Accounting allows just this type of identification of detail. The figure provides examples of different Controlling (CO) objects that can accumulate expenses. FI is intended for legal reporting. It can be used to draw up a balance sheet and an income statement at the level of accounting entities. The purpose of Management Accounting is to collect revenue and expenses by areas of responsibility to be used for internal management reporting purposes. The level at which FI is needed is determined by law. Legal reporting is different for each country. Copyright. All rights reserved. 99

8 Unit 4: Financial Accounting and Management Accounting: Overview Management Accounting analyzes costs and revenues at high levels across country boundaries. For example, it can analyze costs for all production departments worldwide. Costs and revenues from FI are used in Management Accounting. In Management Accounting, financial data can be allocated across several (FI) boundaries. The results in Management Accounting can be compared with the result in FI (reconciliation). Management Accounting provides Controlling (CO) objects, which can represent areas of responsibilities that incur costs, revenues, or both, which allow an organization to track both costs and revenues internally. In SAP S/4HANA, Financial Accounting and Management Accounting use common line items for actual data, stored in a Universal Journal. The technical name of the table is ACDOCA. The common line items provide the following: A single source of truth for all accounting components. Reconciliation is a topic of the past bringing large cost and time savings. A simple but holistic data model. SAP HANA can be leveraged in the best possible manner bringing unprecedented insight (in both speed and content). The universal journal combines and harmonizes the good qualities of all accounting components. The simplification of the application is a required step and a great foundation for further enhancements. Non-disruptive innovation and simplification. SAP strives to provide a true next generation application with the least possible disruption, safeguarding customer investments and processes. 100 Copyright. All rights reserved.

9 Lesson: Explaining Financial Accounting (FI) SAP S/4HANA Finance - Simplified Data Model Figure 72: SAP S/4HANA Finance - Simplified Data Model The new architecture implements a new data model to SAP S/4HANA Finance, which has the following benefits: One line item table with full detail for all components. Data is stored only once, so no reconciliation needed by architecture. Fast multi-dimensional reporting on the Universal Journal is possible without replicating data to Business Intelligence (BI). If BI is in place, one single BI extractor is needed. Reduction of memory footprint through elimination of redundancy. Technical preparation is done to enhance important structural capabilities of the Financials solution (for example, multi-gaap, additional currencies). Non-Disruptiveness Usage of SAP S/4HANA Figure 73: Non-Disruptiveness Usage of SAP S/4HANA Existing programs and interfaces can still be used by reading compatibility views: Copyright. All rights reserved. 101

10 Unit 4: Financial Accounting and Management Accounting: Overview Read access from custom ABAP programs or reports to prior tables will work as before Read access is automatically re-directed to the universal journal as the new single source of truth All programs with write access to those deleted tables replaced by core data services (CDS) views will make trouble and can t be used anymore without adaptation. Remove all write accesses in by views replaced tables. Use the code inspector to find all affected parts of the code (see SAP note ). If you migrate from an ERP system to SAP S/4HANA, despite the new data model many, old programs will still run. Therefore, SAP provides the following compatibility views: Read access from custom ABAP programs or reports to prior tables will work as before Read access is automatically re-directed to the universal journal as the new single source of truth LESSON SUMMARY You should now be able to: Explain Financial Accounting (FI) 102 Copyright. All rights reserved.

11 Unit 4 Lesson Explaining Management Accounting (CO) LESSON OBJECTIVES After completing this lesson, you will be able to: Explain Management Accounting (CO) Management Accounting Components Figure 74: Different Focus of Financial Accounting (Fl) and Management Accounting (CO) Review the difference between Financial Accounting (Fl) and Management Accounting (CO). Explain that CO provides information that is used for making management decisions. It facilitates coordination, monitoring, and optimization of all processes in an organization. Fl satisfies the external reporting requirements. CO contains all of the functions necessary for controlling cost and revenue effectively. It covers all aspects of management controlling and includes many tools for compiling information for company management. Copyright. All rights reserved. 103

12 Unit 4: Financial Accounting and Management Accounting: Overview Financial reports that are used for external reporting purposes, such as balance sheets and profit and loss (P&L) statements, are created in Fl. Similar to the various legal requirements set by relevant financial authorities, these external reporting requirements are prescribed through general accounting standards, such as generally accepted accounting principles in the US (US GAAP) or International Financial Reporting Standard (IFRS). Components of CO Figure 75: Components of Management Accounting Cost-relevant data flows automatically to CO from FI and other applications. For example, vendor invoices that are processed in accounts payable accounting (A/P) update costs in a cost center. Asset management may calculate interest or depreciation while a posting can be made to a cost center. Revenue may be posted directly to FI and then a profitability segment can be updated in CO-PA. EC-PCA receives a statistical posting for every transaction that affects Controlling (CO). Human resources (HR) may provide payroll expenses and time sheet data, which in turn can be posted to a cost center or an internal order. Materials management (MM) is closely integrated with production orders (material consumption), but emphasize that you can also issue materials to cost centers and internal orders. Revenue-related postings are generally produced in a Sales and Distribution (SD) module. Each time an SD posting occurs, the system normally updates profitability analysis and profit center 104 Copyright. All rights reserved.

13 Lesson: Explaining Management Accounting (CO) accounting with revenue and sales discounts. In addition, a cost of goods sold posting also occurs. Production planning (PP) provides CO with bills of material (BOMs) and routings information, which is required in product costing. At the same time, the system assigns costs and revenues to different CO account assignment objects, such as cost centers, business processes, projects, or orders. Point out that the black arrows on the slide display the flow of costs and activities between different components of CO. CO consists of several components, as shown in the figure, Components of Management Accounting. Similarly, costs from Overhead Cost Controlling (CO-OM) and Product Cost Controlling (CO-PC) can flow into Profitability Analysis (CO-PA) where, together with revenue data, the system can use these costs to calculate operating results, making it possible to establish how profitable the various areas are. Other SAP ERP applications can post costs or revenues to CO. Postings to an expense account in Fl, for example, can cause cost postings in CO-OM. In the same way, FI can post revenues directly to CO-PA. Cost flows also occur between Fl and CO-PC, where the system enters raw material costs that are incurred in the production process. In addition, there is a flow back into Fl if the system activates the production costs as a finished product or work in process (WIP). Other SAP ERP components, such as Human Capital Management (HCM) and Logistics (materials management, Sales and Distribution, and production planning), are also integrated with CO. LESSON SUMMARY You should now be able to: Explain Management Accounting (CO) Copyright. All rights reserved. 105

14 Unit 4 Lesson Outlining the Integration Between FI and CO LESSON OBJECTIVES After completing this lesson, you will be able to: Explain the integration between FI and CO FI and CO Integration Figure 76: Assignment of Company Codes to Controlling Area Explain that one or more company codes are assigned to a CO area. If you assign more than one company code to a single CO area, then all companies in the CO area must use the same operating chart of accounts. Also, the fiscal year variants of all company codes must be the same. 106 Copyright. All rights reserved.

15 Lesson: Outlining the Integration Between FI and CO By assigning more than one company code to a CO area, you can perform cost accounting for all company codes. You can allocate values in Management Accounting that affect more than one company code. In cross-company-code cost accounting, a CO area and its company codes can have different currencies. The currency of a CO area can be same as that of a company code. You can use the following currencies in Management Accounting: CO area currency Company code currency or object currency Transaction currency (used for posting a document to Management Accounting) By default, cross-company-code cost accounting displays the company code currency as the object currency. You cannot change this default value. If you have assigned only one company code to a CO area, you can also assign the object currency for each CO object, such as a cost center, as required. You can assign more than one company code to a CO area. This assignment enables controlling across company codes. A CO area and its company codes must use the same operating chart of accounts and the same fiscal year variant. However, you can link these accounts to countryspecific accounts by using an alternative account number that is stored in the master data record for accounts. LESSON SUMMARY You should now be able to: Explain the integration between FI and CO Copyright. All rights reserved. 107

16 Unit 4: Financial Accounting and Management Accounting: Overview 108 Copyright. All rights reserved.

17 Unit Learning Assessment 1. Which of the following are tasks of Financial Accounting? Choose the correct answers. X X X X A Financial Accounting posts all financial transactions, revenues, and expenses. B Financial Accounting provides data for cost center managers. C Financial Accounting analyzes cost variances and inefficiencies in the company. D Financial Accounting allows the setting up of a profit and loss statement and a balance sheet. 2. In G/L accounting, you can deal with different reporting standards by using parallel accounts. Determine whether this statement is true or false. X X True False Copyright. All rights reserved. 109

18 Unit Learning Assessment - Answers 1. Which of the following are tasks of Financial Accounting? Choose the correct answers. X X X X A Financial Accounting posts all financial transactions, revenues, and expenses. B Financial Accounting provides data for cost center managers. C Financial Accounting analyzes cost variances and inefficiencies in the company. D Financial Accounting allows the setting up of a profit and loss statement and a balance sheet. 2. In G/L accounting, you can deal with different reporting standards by using parallel accounts. Determine whether this statement is true or false. X X True False 110 Copyright. All rights reserved.

19 UNIT 5 Financial Accounting and Management Accounting: Basics Lesson 1 Defining General Ledger (G/L) Accounts and Cost Elements 113 Exercise 5: Create a Primary Cost Account 123 Lesson 2 Defining Cost Centers 128 Exercise 6: Create and Display Cost Centers 133 Lesson 3 Posting a G/L Account Document 139 Exercise 7: Create a Posting from Financial Accounting 143 Exercise 8: Display a G/L Account and G/L Account Line Items 147 Exercise 9: Check an Account in the Financial Statement Version (Optional) 155 Exercise 10: Display a Financial Statement 157 Lesson 4 Working with Business Partners and Invoices 161 Exercise 11: Create a Business Partner (FI Vendor) 167 Exercise 12: Enter a Vendor Invoice with Document Splitting 173 Exercise 13: Post a Manual Outgoing Payment with Check Printing 177 Exercise 14: Display Vendors Account 181 Lesson 5 Working with Asset Accounting 184 Exercise 15: Create an Asset Master Record 193 Exercise 16: Post an Integrated Asset Acquisition 197 Lesson 6 Working with Activity Types 202 Exercise 17: Create a Secondary Cost Account and an Activity Type 205 Exercise 18: Post an Activity Allocation 215 Lesson 7 Copyright. All rights reserved. 111

20 Unit 5: Financial Accounting and Management Accounting: Basics Working with Internal Orders 219 Exercise 19: Maintain Master Data of an Internal Order 225 Exercise 20: Create Transaction-Based Postings to an Internal Order 229 Exercise 21: Settle Orders at Period-End 233 UNIT OBJECTIVES Define a G/L account Create a cost center Post to a G/L account Run a financial statement and query an account Create a vendor master record Post a vendor invoice in FI Create an asset master record Plan rates for cost center and activity type Post an activity allocation Create an internal order 112 Copyright. All rights reserved.

21 Unit 5 Lesson Defining General Ledger (G/L) Accounts and Cost Elements LESSON OBJECTIVES After completing this lesson, you will be able to: Define a G/L account Chart of Account Figure 77: Chart of Account Explain that the chart of accounts is a list of all G/L account master records that are used in one or more company codes. Each G/L is set up according to a chart of accounts. The chart of accounts contains the definitions of all G/L accounts. The definitions consist of the account number, the account name, and the type of G/L account (profit and loss (P&L) account or a balance sheet account). Copyright. All rights reserved. 113

22 Unit 5: Financial Accounting and Management Accounting: Basics Assignment of Company Codes to Chart of Accounts Figure 78: Assignment of Company Codes to Chart of Accounts You have to assign an operating chart of accounts to each company code. The operating chart of accounts is used for the daily postings in the assigned company code. Multiple companies can use the same operating chart of accounts. You have the following options when using multiple company codes: You can use the same chart of accounts for all company codes. If all company codes have the same requirements for the chart of accounts set up, assign all the individual company codes to the same chart of accounts. This could be the case if all company codes are in the same country. In addition to the operating chart of accounts, you can use two additional charts of accounts. If the individual company codes need different charts of accounts, you can assign up to two charts of accounts in addition to the operating chart of accounts. This could be the case if company codes are in multiple countries. A chart of accounts can be used by multiple company codes so that the general ledgers of these company codes have an identical structure. General Ledger Account and Cost Element Discuss the two segments of the G/L master record, the chart of accounts segment and the company code segment. 114 Copyright. All rights reserved.

23 Lesson: Defining General Ledger (G/L) Accounts and Cost Elements The G/L account master data, at the chart of accounts level, contains information that is valid for all company codes. The chart of accounts area also contains data that controls how a G/L account is created in the company-code. The company-code category of a G/L account contains data that is valid for only one company code, for example, the currency in which the account may be posted. Before you can create the company code segment, the G/L account must already exist in the chart of accounts. The two segments of the G/L master record are as follows: Chart of accounts segment The chart of accounts segment contains a description of the account, an indication as to whether the account is a balance sheet account or a P&L account, the account group that controls the company code segment fields, and the consolidation account number. Company code segment The company code segment contains values specific to how the company code will manage that account. The following controls are found in the company code segment: Account control Account management Bank or financial details Joint ventures Interest calculation Document control Expenditures and Cost Figure 79: Expenditures and Cost Copyright. All rights reserved. 115

24 Unit 5: Financial Accounting and Management Accounting: Basics In the economical theory, there are two approaches for values: In the first approach, the values in Financial Accounting and Management Accounting are the same. Controlling provides additional reporting opportunities by separating the FI documents along additional characteristics, such as segments, profit centers, projects, stored in a coding block. The results may be P&L statements and balance sheets per segment, per profit center or per project. In the second approach (most used in central Europe), Management Accounting is based on cost and revenues. Costs are only those expenditures, which are as follows: - Related to the business of the company - Exactly assigned to periods (source specific) - Valuated For example, a gift to a welfare organization is an expenditure, but not a cost, because it is not the business of the company to make gifts. Expenditures, which do not meet the definition of costs, are only reflected in Financials, and not in Management Accounting. They are called neutral expenditures. In addition you may want to take additional costs into account, which are not reflected in FI, for example, because no financial document exists. Examples could include the following: If you run your company in your own offices and buildings, you do not pay rents. But, there are production factors, which have to be reflected in the costs of the products. Add the missing rents as additional (imputed) costs in Management Accounting. They are not part of Financial Accounting because they are not based on a legal document like invoices. If you did invest a huge amount of money in your company, you cannot invest your money in the capital market, for example to earn interests. So the unrealized interests are the costs (opportunity costs) for your invested money and you may want to add it to CO by using additional costs. If you have assets in your company, you post depreciations in Financial Accounting. Depreciations are calculated according to the laws of your country and Financial Accounting Standards and are subjected to changes of law at any time. So depreciation in US GAAP may be calculated different than in IFRS or HGB and all of them may not reflect the real decline of value of an asset. The idea could be to install a separate depreciation calculation for CO. If the costing-based depreciation is higher than the financial-based depreciation, the differences are additional cost. On the other hand, the difference would be neutral expenditure. In SAP, the different depreciations are reflected by different valuation areas. You will read more about this in the lesson about asset accounting later. SAP provides the opportunity to realize each of the theories. In SAP S/4HANA revenues, expenditures, and cost are represented by financial accounts and separated by the account type of the accounts. Based on the account type, the accounts used in CO are also called cost elements. 116 Copyright. All rights reserved.

25 Lesson: Defining General Ledger (G/L) Accounts and Cost Elements Financial Account and Cost Element Figure 80: Financial Accounting and Cost Elements In the new data model, only one master record is needed: the account. A new field is added (GLACCOUNT_TYPE) to differ between the different G/L account types. Note that the account type is assigned on controlling area level. We have P&L accounts for non-operating expenses and revenues, for example, those parts of the P&L that were never associated with a cost center, order, or CO-PA characteristics in the past. We have P&L accounts for the primary cost elements; these are the cost elements used for salary expenses in Cost Center Accounting, material expenses in Order and Project Accounting and revenues and sales deductions in account-based CO-PA. In the new approach, we have P&L accounts for the secondary cost element; these are all cost elements used to post allocations in Management Accounting. Copyright. All rights reserved. 117

26 Unit 5: Financial Accounting and Management Accounting: Basics Account Groups Figure 81: Account Groups An account group is a summary of characteristics that control the creation of master records. You can use an account group to determine the fields to fill when creating the master record. In addition, you can use an account group to predefine the number ranges. Account groups classify G/L accounts into user-defined segments and also determine the number range of the accounts that will fall into these user-defined segments. You determine the field status of the company code segment of the master record when you create, change, or display the company code segment. The field status options are Suppress, Required, Display, and Optional. 118 Copyright. All rights reserved.

27 Lesson: Defining General Ledger (G/L) Accounts and Cost Elements Reconciliation Accounts Figure 82: Reconciliation Accounts Explain that the subledgers within the system are represented by customers, vendors, and assets. For each subledger account, you must keep at least one reconciliation account in the general ledger. When you post to an account in the subledger, the system automatically posts to the corresponding reconciliation account in the G/L. By using a reconciliation account, it is possible to create a balance sheet and a P&L statement at any time because the amounts posted to subledger accounts are also posted automatically to the G/L. Stress the fact that you cannot manually post to reconciliation accounts directly. A reconciliation account ensures real-time integration of a subledger account with the G/L. The reconciliation between subledger and G/L is always guaranteed because the G/L reconciliation account is not enabled for direct posting. In the G/L, postings are limited to reconciliation account types only. Copyright. All rights reserved. 119

28 Unit 5: Financial Accounting and Management Accounting: Basics Management Accounting Integrated into the Company Business Figure 83: Management Accounting Integrated into the Company Business Explain how CO is integrated with other SAP ERP applications. Data that the system creates in other SAP ERP applications can have a direct influence on CO. For example, if you purchase a non-stock item, the system posts an expense to the general ledger (G/L). The system also posts this expense as costs to the cost center for which the item was purchased. This cost center can then pass these costs as overhead to a production cost center. FI, in the SAP ERP application, is a primary source of data for CO. In fact, most expense postings in the G/L result in a cost posting in CO. These expense postings to the G/L can be journal postings, vendor invoices, or depreciation postings from Asset Management. Sales order management is a primary source for revenue postings from billing documents to revenue postings in CO-PA and EC-PCA. SAP ERP Human Capital Management (HCM) can generate cost postings in CO. SAP ERP HCM allows you to allocate labor costs to various controlling objects. In addition, you can transfer and use planned personnel costs for planning in CO. In materials management (MM), a goods issue transaction can create a cost posting in CO to the specified cost object. The system creates product cost estimates in CO that can update price fields in material master records. Finally, purchase orders in MM can generate commitment postings within CO. The manufacturing area of Logistics also works closely with CO. Bills of material (BOMs) and routings can be used in CO-PC. 120 Copyright. All rights reserved.

29 Lesson: Defining General Ledger (G/L) Accounts and Cost Elements Within the Overhead Cost Controlling (CO-OM) area, you can post costs to cost centers, internal orders, and processes from other SAP ERP applications (external costs). Cost centers can then allocate these costs to other cost centers, internal orders, and processes in Activity-Based Costing (ABC). ABC, in turn, can pass costs to cost centers and internal orders. Internal orders can settle costs to cost centers, processes in ABC, and other internal orders. Central cost flows can exist between CO-OM and Product Cost Controlling (CO-PC). Cost objects, such as production orders, can receive direct cost postings from FI, costs from cost centers, costs settled from internal orders, and costs allocated from ABC processes. The components of profitability accounting are also tightly integrated with CO-OM and CO-PC. In addition to direct postings from FI, Profitability Analysis (CO-PA) can receive cost assessments from cost centers and ABC processes, settlements of costs from internal orders, and settlements of production variances from cost objects. If you assign all cost objects to profit centers, all costs posted on these cost objects are automatically assigned to their profit centers. How to Create a G/L Expenses Account 1. Create the primary cost account vehicle cost ## in chart of accounts YCOA. Use the exercise Create a Primary Cost Account as demo description. Hint: The G/L account already exists in the system. You can use this account for follow up demos. Copyright. All rights reserved. 121

30 Unit 5: Financial Accounting and Management Accounting: Basics 122 Copyright. All rights reserved.

31 Unit 5 Exercise Create a Primary Cost Account Note that, in this exercise, when the values include ##, replace ## with the number your instructor assigned to you. Your company (company code 1010) needs a new G/L primary cost accounts. 1. Create G/L account in Chart of Accounts. Create the primary Cost account ## with description vehicle cost ## in chart of accounts YCOA. In the SAP Fiori Launchpad, choose the Manage G/L Account Master Data tile and create the new G/L account with the following values: Field Name Value Header tab G/L Account ## General tab Short Text Vehicle cost ## Chart of Accounts Account Type G/L Account Long Text Account Group Group Account Number YCOA P Primary Costs or Revenue Vehicle cost ## gasoline ERG. Income statement accounts (Vehicle Costs) 2. Before postings can be made to G/L account ## in company code 1010, you need to define the company code-specific settings with the following values: Field Name Value Control Data tab Account Currency EUR Tax Category V1 which means 19% Posting without tax allowed mark Create/Bank/Interest tab Field Status Group YB04 Copyright. All rights reserved. 123

32 Unit 5: Financial Accounting and Management Accounting: Basics Controlling Data Cost Element Category 01 (Primary costs/cost-reducing revenues) 124 Copyright. All rights reserved.

33 Unit 5 Solution Create a Primary Cost Account Note that, in this exercise, when the values include ##, replace ## with the number your instructor assigned to you. Your company (company code 1010) needs a new G/L primary cost accounts. 1. Create G/L account in Chart of Accounts. Create the primary Cost account ## with description vehicle cost ## in chart of accounts YCOA. In the SAP Fiori Launchpad, choose the Manage G/L Account Master Data tile and create the new G/L account with the following values: Field Name Value Header tab G/L Account ## General tab Short Text Vehicle cost ## Chart of Accounts Account Type G/L Account Long Text Account Group Group Account Number YCOA P Primary Costs or Revenue Vehicle cost ## gasoline ERG. Income statement accounts (Vehicle Costs) a) On the SAP Fiori Launchpad, choose the Manage G/L Account Master Data tile in the Launchpad. You can search for the tile by entering manage G/L in the search box on top of the screen. b) On the Manage G/L Account Master Data screen, choose Add (= + Icon). c) On the New G/L Account Master Data screen, enter the values in the table above. d) Choose OK. e) Choose Save. You have created a G/L account on chart of account level. f) Stay on this screen. Copyright. All rights reserved. 125

34 Unit 5: Financial Accounting and Management Accounting: Basics 2. Before postings can be made to G/L account ## in company code 1010, you need to define the company code-specific settings with the following values: Field Name Value Control Data tab Account Currency EUR Tax Category V1 which means 19% Posting without tax allowed mark Create/Bank/Interest tab Field Status Group YB04 Controlling Data Cost Element Category 01 (Primary costs/cost-reducing revenues) a) On the G/L Account Master Data screen, choose the Company Code Data tab. b) Choose Edit. c) Choose Add (= + Icon) on the Company Code Data tab. d) Enter company code 1010 in the field New Company Code Assignment. e) On the Control Data tab, enter the values provided in the table for the Account Currency and Cost Element Category fields. f) On the Create/Bank/Interest tab, in the Field Status Group field, enter YB04. g) Choose OK. h) On the Controlling Area tab enter Cost Element Category 01. i) Choose Save. 126 Copyright. All rights reserved.

35 Lesson: Defining General Ledger (G/L) Accounts and Cost Elements LESSON SUMMARY You should now be able to: Define a G/L account Copyright. All rights reserved. 127

36 Unit 5 Lesson Defining Cost Centers LESSON OBJECTIVES After completing this lesson, you will be able to: Create a cost center Cost Center Accounting Figure 84: Standard Hierarchy of Cost Centers in a CO Area Explain that cost centers require a formal structure called a hierarchy. The standard hierarchy is a tree structure that represents all cost centers belonging to a CO area from a CO perspective. It comprises all cost centers for a given period. Therefore, the hierarchy represents the whole enterprise. You can combine cost centers into cost center groups. You can then create cost center hierarchies from these groups by combining the groups according to the decision-making area, 128 Copyright. All rights reserved.

37 Lesson: Defining Cost Centers area of responsibility, or management area. The figure, Standard Hierarchy of Cost Centers in a CO Area, shows an example. The cost center is master data in a CO area that represents a delimited location where costs occur. You can use cost centers for differentiated assignment of overhead costs to organizational activities based on utilization of the relevant areas (cost determination function), and for differentiated controlling of costs arising in an organization (cost controlling function). The CO-OM-CCA component tracks where costs occur in your organization. Cost centers can be defined according to several design approaches, such as functional requirements, allocation criteria, activities, and services provided geographic location or area of responsibility. The approach should be consistent throughout the enterprise. As a typical approach, an enterprise can define a cost center for each low-level organizational level that has responsibility for managing costs. As costs are incurred, they are assigned or posted to the appropriate cost center. These costs can include payroll costs, rent and utility costs, or any other costs relevant to a cost center. The posting and assignment of costs to cost centers makes managerial accounting possible, which is a vital step for utilizing other CO components. Cost Center Data The Basic Data section contains basic information of a cost center, such as the cost center s name and description, the name of the cost center manager, and the department to which you want to assign the cost center. The Cost Center Hierarchy field displays the standard hierarchy node to which the cost center is assigned. This field must be filled so it can be used as a control feature in Overhead Management Accounting. Each CO area must have a unique standard hierarchy that includes every cost center created in that CO area. The cost center belongs to a responsible organizational area, mostly represented by a profit enter, to which you assign the cost center. The Company Code and Segment represent the close ties between Management Accounting and FI. If a CO area has more than one company code, you must specify the company code that the user links to each cost center. If a segment reporting is required, you can derive the segment via a profit center, which you enter in the cost center master record. Copyright. All rights reserved. 129

38 Unit 5: Financial Accounting and Management Accounting: Basics Figure 85: Cost Center Data The cost center master record is time dependent and assigned to a node of the standard cost center hierarchy. Additionally you assign the cost center to organizational units like company code and functional area. You can assign a cost center to a profit center. The control data is used to lock the cost center against planning and posting activities. 130 Copyright. All rights reserved.

39 Lesson: Defining Cost Centers Statistical Key Figures Figure 86: Statistical Key Figures Statistical key figures are nonmonetary information that you can plan and post on cost centers (and other cost objects). They are used as additional reporting info in cost center reports, to calculate additional key figures, such as average salaries per employee, and as distribution factors to distribute cost from one cost center to another. An example could be the distribution of cost of a facility cost center to other cost centers according to the space in square meters (or square foot) that they use. To allow the system to calculate the total, you need to determine the category value, as follows: Fixed: the periodic values can not be added to a total. The system will calculate the total of a period as an average of the single values. Total: the periodic values can be added to a total. Copyright. All rights reserved. 131

40 Unit 5: Financial Accounting and Management Accounting: Basics 132 Copyright. All rights reserved.

41 Unit 5 Exercise Create and Display Cost Centers In this exercise, when the values include ##, replace ## with the number your instructor assigned to you. 1. Create Cost Center SERV-## with the appropriate transactual app in your SAP Fiori launchpad. Search with the search tool for manage Cost centers. Don t use the Cost Center app, because this is a factsheet for a cost center. Note: In the training system you can still use transaction code KS01 as an alternative. SAP Note describes which transaction codes are substituted by apps. SAP Note describes how to get the transaction codes back. Enter the following data: Field Controlling Area Cost Center Valid from Value A000 SERV-## 1.1.actual year Valid to Person Responsible your name Cost Center Name service ## Cost Center Description service Cost Center of Group ## Cost Center Category Hierarchy area H TS4F20## Company Code 1010 Profit Center T PCA## 2. Search for your cost center. 3. Create Cost Center PROD-## with the appropriate transactual app in your SAP Fiori launchpad. Search with the search tool for manage Cost centers. Use the cost center SERV-## as reference. Enter or change the following data: Copyright. All rights reserved. 133

42 Unit 5: Financial Accounting and Management Accounting: Basics Field Controlling Area Cost Center Valid from Value A000 PROD-## 1.1.actual year Valid to Reference Controlling Area Reference Cost Center A000 SERV-## Cost Center Name Production ## Cost Center Description production Cost Center of Group ## Person Responsible Cost Center Category Hierarchy area your name F TS4F20## Company Code 1010 Profit Center T PCB## 134 Copyright. All rights reserved.

43 Unit 5 Solution Create and Display Cost Centers In this exercise, when the values include ##, replace ## with the number your instructor assigned to you. 1. Create Cost Center SERV-## with the appropriate transactual app in your SAP Fiori launchpad. Search with the search tool for manage Cost centers. Don t use the Cost Center app, because this is a factsheet for a cost center. Note: In the training system you can still use transaction code KS01 as an alternative. SAP Note describes which transaction codes are substituted by apps. SAP Note describes how to get the transaction codes back. Enter the following data: Field Controlling Area Cost Center Valid from Value A000 SERV-## 1.1.actual year Valid to Person Responsible your name Cost Center Name service ## Cost Center Description service Cost Center of Group ## Cost Center Category Hierarchy area H TS4F20## Company Code 1010 Profit Center T PCA## a) Navigate to the SAP Fiori launchpad. Use the search tool to search for manage Cost Centers and open the app. b) Choose Add. c) Enter the required data for the cost center master data record. Copyright. All rights reserved. 135

44 Unit 5: Financial Accounting and Management Accounting: Basics d) Choose Continue. e) Enter the required data for the cost center master data record and choose Save. You receive the message, Data saved. f) To leave the screen, choose Back. 2. Search for your cost center. a) In the Cost Center field, enter SERV-##. The more letters you write, the less items are in the list of search results. b) To see the final list of search results, choose Go. c) Set your cursor on the name of your cost center in the list and choose Display. d) Close the active window and leave the app by choosing Back. 3. Create Cost Center PROD-## with the appropriate transactual app in your SAP Fiori launchpad. Search with the search tool for manage Cost centers. Use the cost center SERV-## as reference. Enter or change the following data: Field Value Controlling Area Cost Center Valid from A000 PROD-## 1.1.actual year Valid to Reference Controlling Area Reference Cost Center A000 SERV-## Cost Center Name Production ## Cost Center Description production Cost Center of Group ## Person Responsible Cost Center Category Hierarchy area your name F TS4F20## Company Code 1010 Profit Center T PCB## a) Navigate to the SAP Fiori launchpad. Use the search tool to search for manage Cost Centers and open the app. b) Choose Add. c) Enter the required data for the cost center master data record. 136 Copyright. All rights reserved.

45 Lesson: Defining Cost Centers d) Choose Continue. e) Enter the required data for the cost center master data record and choose Save. You receive the message, Data saved. f) To leave the screen, choose Back. Copyright. All rights reserved. 137

46 Unit 5: Financial Accounting and Management Accounting: Basics LESSON SUMMARY You should now be able to: Create a cost center 138 Copyright. All rights reserved.

47 Unit 5 Lesson Posting a G/L Account Document LESSON OBJECTIVES After completing this lesson, you will be able to: Post to a G/L account Run a financial statement and query an account Document Structure Figure 87: External Postings with SAP S/4HANA Finance Postings from outside Finance (except AA) into Finance are using a standardized Accounting Interface. So the other Applications have not much to focus on the changed data structure and posting logic inside Finance. BSEG summarization works and can be used as usual (SAP Note ). BSEG is used for storing open item and clearing details. Therefore, you can be quite aggressive with the summarization. ACDOCA stores the full detail that is needed for all components that base on ACDOCA (G/L, AA, ML, CO, PA). The BSEG table should be summarized as far as possible and the ACDOCA table should be summarized as little as possible to enable reporting that is as differentiated as possible in the ACDOCA table. The summarization in the ACDOCA table can, at Copyright. All rights reserved. 139

48 Unit 5: Financial Accounting and Management Accounting: Basics most, be as large as that of the BSEG table, because line items in the ACDOCA table cannot be summarized further than the corresponding line items in the BSEG table. In SAP Accounting powered by SAP HANA 1503, On-Premise Edition, SPS 1511, or SAP S/ 4HANA OP 1511 or corresponding higher releases, a function has been implemented to summarize the line items in the table ACDOCA and to summarize CO-PA profitability segments. You can find these along with additional documentation in customizing, under Financial Accounting (New) Financial Accounting Global Settings (New) Document Document Summarization. From here, you can also access the summarization of the table BSEG described in SAP Note Because the account-based CO-PA line items including the profitability segment number and the resolved characteristic vector are stored in the ACDOCA table, the same summarization settings are used for CO-PA profitability segment determination, too. You can, therefore, find these settings, along with documentation and the existing summarization for costing-based CO-PA line items, under Controlling Profitability Analysis Flows of Actual Values Initial Values Summarization. Postings in other areas of SAP S/4HANA, which are relevant for Accounting, are posted to Financials via an Accounting Interface. The line items of the postings are stored according to the new data model in the ACDOCA table (called Universal Journal). As some Modules are not (or not yet) changed to the new data model, data may be stored only in the old tables (known from ERP) or in the old tables additionally. Posting Keys Figure 88: The Posting Key The posting key is a two-character numerical key that controls the entry of line items. The posting key determines the account type, debit or credit posting, and the layout of entry screens. Explain that in the newer user interfaces for G/L transactions, you do not need to enter the posting key. You only need to enter a debit or credit indicator and the system will automatically determine the posting key. Each document line item contains one posting key. 140 Copyright. All rights reserved.

49 Lesson: Posting a G/L Account Document A posting key controls the following for each document line item: Account type to be posted Type of posting (debit or credit) Fields of the line item may have or require an entry Universal Journal Entry (ACDOCA) Figure 89: Universal Journal Entry (ACDOCA) The new journal entry consists of a header (table BKPF) and the respective items (table ACDOCA). There are rare cases where entries in ACDOCA are written without a respective document header (for example, carry forward, corrections in migration). These entries do not represent standard business processes. The corresponding line items have artificial document numbers beginning with letters (for example, A). The ACDOCA table contains all fields needed for G/L, CO, AA, ML, PA, providing one single source of truth for all these modules. For CO, the universal journal also contains all cost elements, including secondary cost elements, which are also in SAP S/4HANA G/L accounts. In addition, the universal journal has multi-gaap capability by using an RLDNR dimension, which has a 6 digit field for line item numbering and 23 digits for currency fields. As in ERP, the Universal Journal can be easily extended with customer fields. The extensibility is available for all components that use the Universal Journal (G/L, CO, AA, ML), as follows: P&L line extension using CO-PA capabilities is provided for field definition (characteristics) and the rich derivation tools from CO-PA. The standard General Ledger coding block extensibility can be used and affects the Universal Journal. Copyright. All rights reserved. 141

50 Unit 5: Financial Accounting and Management Accounting: Basics The new SAP HANA-based reporting of all components (G/L, AA, ML, CO) can access the customer fields. Prima Nota The Prima Nota is the source document that triggers the creation of Journal Entries. It is the single anchor that allows, for example, the reversal of the complete process triggered by the Prima Nota. The Prima Nota keeps the information that has been entered to the system before derivations, enrichments, splits, and so on, take place in Accounting in order to create Journal Entries. In many cases, the Prima Nota is a document outside Financials. Examples are Expense Reports, Invoices, and Payroll documents. For posting within the Financials world, a Prima Nota is also needed. For classical FI postings (FB01, FB50, FB60, FB70, and so on), the Prima Nota is still stored in the BSEG table and the corresponding Journal Entries (can be several due to the multi-gaap capability) are written to the ACDOCA table. For classic (manual) CO postings, the Prima Nota is still written to COEP table. The corresponding journal entries are written to the ACDOCA table. A Prima Nota is written as well in cases, where CO is triggered via BAPI interfaces (AWTYP <> AFRU, CATS). For allocation postings (assessment, settlement, and so on), no Prima Nota is required and data is written to the ACDOCA table only. The allocation process has its own history management (for example, canceling an allocation journal entry). Material price changes (MR21) or Material Debit/Credit (MR22) create a Prima Nota in the material ledger (tables MLHD, MLIT, and so on). The respective journal entries are posted to ACDOCA. 142 Copyright. All rights reserved.

51 Unit 5 Exercise Create a Posting from Financial Accounting Business Example When you record business transactions in an application component such as Financial Accounting (FI), your company wants to be sure that the corresponding cost data is also transferred to Management Accounting in real-time without reconciliation runs. Enter business transactions in FI to see how the system uses the corresponding account assignment logic to automatically transfer the information to Management Accounting. Process Management Accounting reports to display these business transactions and drill down to access the source documents. In this exercise, in the general ledger (FI), post an expense that is relevant to a cost center and determine which costs are transferred to Management Accounting. In this exercise, when the values include ##, replace ## with the number your instructor assigned to you. 1. Create a general ledger (G/L) account posting, with today s date, for the raw materials purchase for the German company code 1010 in EUR currency. Enter a debit amount of 2975 including 19% tax for G/L account ##. Specify that the offsetting credit is to be made to G/L account On the SAP Fiori Launchpad, select the Cost Center Report Cost Centers Plan/Actual. 3. Drill down to the original document. Copyright. All rights reserved. 143

52 Unit 5 Solution Create a Posting from Financial Accounting Business Example When you record business transactions in an application component such as Financial Accounting (FI), your company wants to be sure that the corresponding cost data is also transferred to Management Accounting in real-time without reconciliation runs. Enter business transactions in FI to see how the system uses the corresponding account assignment logic to automatically transfer the information to Management Accounting. Process Management Accounting reports to display these business transactions and drill down to access the source documents. In this exercise, in the general ledger (FI), post an expense that is relevant to a cost center and determine which costs are transferred to Management Accounting. In this exercise, when the values include ##, replace ## with the number your instructor assigned to you. 1. Create a general ledger (G/L) account posting, with today s date, for the raw materials purchase for the German company code 1010 in EUR currency. Enter a debit amount of 2975 including 19% tax for G/L account ##. Specify that the offsetting credit is to be made to G/L account a) Go to the SAP Fiori Launchpad and choose Post General Journal Entries. b) On the screen, enter the following data: Table 1: Values for a General Ledger Account Posting Field Name or Data Type Journal Entry Date Value Current Date Company Code 1010 Posting Date Transaction Currency Period Journal Entry Type Current Date EUR Current Period SA Line Item (1) Company Code 1010 (1) G/L Account ## Vehicle Cost ## (1) Debit Amount Copyright. All rights reserved.

53 Lesson: Posting a G/L Account Document Field Name or Data Type (1) Assignment Open the Account Assignment to select Cost Center Value SERV-## (1) Tax Code V1 (19 %) (2) G/L Account (Bank Account) Credit Amount 2975 In the Tax Items area Calculate tax mark c) Check if the Total Balance is 0. To post your journal entry, choose Post. d) To check your document, select Display. 2. On the SAP Fiori Launchpad, select the Cost Center Report Cost Centers Plan/Actual. a) On the Cost Centers: Plan/Actual Selection screen, enter the following data: Table 2: Values for the Cost Centers Plan/Actual Report Field Name or Data Type Fiscal Year Category Posting Period Value Current Year 0 (Version) Current Period Company Code 1010 Cost Center SERV ## (your cost center) Note: You can expand for searching possible entries. Go is only visible when you compress the expanded entry fields. b) To execute the report, choose Go. 3. Drill down to the original document. a) To select the line items you want, position the cursor on the cell. b) Select Jump to and select the Display G/L Line Items report. c) Check the filter status. You may have to change it to All items and then choose Go. d) To get detailed information, choose Journal Entry. To jump to the original document that you posted in step 1, choose the Journal Entry hypertext. Copyright. All rights reserved. 145

54 Unit 5: Financial Accounting and Management Accounting: Basics 146 Copyright. All rights reserved.

55 Unit 5 Exercise Display a G/L Account and G/L Account Line Items In this exercise, when the values include ##, replace ## with the number your instructor assigned to you. 1. To look up the balance of account ## in company code 1010, choose the SAP Fiori app Display G/L Account Balances. Run the balance for the current year and period. 2. To look up the line items of account ## in company code 1010, choose the SAP Fiori app Display G/L Account Line Items. Run the report for current period. 3. To look up the line items of cost center SERV-## in company code 1010, choose the SAP Fiori app Cost Centers Actuals. Run the report for current period. Copyright. All rights reserved. 147

56 Unit 5 Solution Display a G/L Account and G/L Account Line Items In this exercise, when the values include ##, replace ## with the number your instructor assigned to you. 1. To look up the balance of account ## in company code 1010, choose the SAP Fiori app Display G/L Account Balances. Run the balance for the current year and period. a) Go to the SAP Fiori Launchpad and choose the Display G/L Account Balances tile in the Launchpad. b) Enter the following data in the screen: Field Name Ledger Value 0L Company Code 1010 G/L Account ## Ledger Fiscal Year Period from Period to Controlling Area Current year Current period Current period A000 c) Choose Go. d) To see the line items resulting in this total, choose the debit amount. e) Choose the Journal Entry number to see the details of the item. f) Choose Manage Journal Entries to see the posting document. If this does not work (message FB03 does not exist), use transaction FB03 directly in the training system T41. g) To return to the SAP Fiori Launchpad screen, choose Home. 2. To look up the line items of account ## in company code 1010, choose the SAP Fiori app Display G/L Account Line Items. Run the report for current period. 148 Copyright. All rights reserved.

57 Lesson: Posting a G/L Account Document a) On the SAP Fiori Launchpad, choose the Display G/L Account Line Items tile in the Launchpad. b) Enter the following data in the screen: Field Name Ledger Value 0L Company Code 1010 G/L Account ## Status Posting Date Controlling Area All Items This Month A000 c) Choose Go. d) To see the details of the item, choose the Journal Entry number. e) Choose Manage Journal Entries to see the posting document. If this does not work (message FB03 does not exist), use FB03 as the transaction code directly in the training system T41. f) To return to the SAP Fiori Launchpad screen, choose Home. 3. To look up the line items of cost center SERV-## in company code 1010, choose the SAP Fiori app Cost Centers Actuals. Run the report for current period. a) On the SAP Fiori Launchpad, choose the Cost Centers Actuals tile in the Launchpad. b) Enter the following data in the screen: Field Name Fiscal Year Posting Period Value actual year current period Company Code 1010 Cost Center SERV-## c) Choose Go. d) To eliminate the row Indicator: Cost Center is statistical Account Assignment, move the field from the Rows screen area to the Available Fields screen area on the left hand side of the window. e) Select the available field Profit Center to the area Rows. To see the Profit Center column, you may need to adjust the columns in your Data Analysis area afterwards. Copyright. All rights reserved. 149

58 Unit 5: Financial Accounting and Management Accounting: Basics f) To return to the SAP Fiori Launchpad screen, choose Home. 150 Copyright. All rights reserved.

59 Lesson: Posting a G/L Account Document Financial Statement Figure 90: Maintain Financial Statement Version In a financial statement version, you can define a structure for the balance sheet and Profit & Loss statements reports. You can maintain the structure and you can add G/L Accounts and ranges of G/L accounts to the structure items. Copyright. All rights reserved. 151

60 Unit 5: Financial Accounting and Management Accounting: Basics Financial Statement Views Figure 91: Financial Statement Views A financial statements shows all G/L accounts in a structure, which you define in the financial statement version. You can switch between the balance sheet and the Profit & Loss view choosing the relevant tab. By adding additional filters, you can focus on certain segments or Profit Centers. How to Include the Account in a Financial Statement Version Enter your new account into the financial statement version. 1. The new account has to be entered in financial statement version Assign it to the financial statement subfolder other operating expenses. You will find this subfolder under Profit and loss statement Annual net income/ net loss operating income. a) Go to the Fiori Launchpad and choose the Maintain Financial Statement Version tile in the Launchpad. b) To mark the complete line, click the empty field to the left of Financial Statement Version Copyright. All rights reserved.