General Ledger related case law.

1. SAP - FICO
How to Implement General Ledger in SAP
 Shubham Kava | kavashubham1998@gmail.com | +918530048138

2. Case Study – SAP Implementation
Problem Statement:
• TATA Group a well known conglomerate is in planning stage to
implement SAP across function.
• As a part of Implementation, I am looking at end to end
implementation from Finance Perspective.
• Here, I am going to present the case study of how G/L can be set-up in
SAP.

3. Solution: Define the length of general ledger [TC :-
OB13]
Operational Chart of
Account
Group Chart of Account
Country-specific chart of
account

4. Edit Chart of account [OB13]
• Set length of general ledger account

5. Assign Company code to Chart of Account
Company Code Chart of Account
Chart of Account must assigned to “TATA”. [company code]

6. CHART OF ACCOUNT
Account group of
equity
(1000000 TO 1999999)
Account group of
current assets
(2000000TO 2999999)
Account group of
secured loans
(1000000 to 1999999)
Define Account Group based on client requirements.
Define Account Group [OBD4]
• Case law:- The user is not getting the drop-down list of G/L accounts that
he defined through FS00 [create ledger] while posting through transaction
code FB50/F-02.
• The user usually presses F4 to select a G/L account from the chart of
account (COA). The SAP R/3 system displays all available accounts that are
created for the desired company code. If the user is not getting the G/L
account.

7. o First digit signifies whether account is a balance sheet or an
income statement (revenue or expense) item:
 1 = Asset
 2 = Liability
 3 = Fund Balance
 4 = Revenue
 7 = Expense
 6 = Budget Commitment items for revenue and expense. Used
only for allocate budget.

8. Example of account group as under
1
2
3
4
5
6
7
8
1. Liabilities
2. Assets
3. Income
4. Direct expenses
5. Other expenses
6. Selling expenses
7. Deprecation
8. Noted items

9. Define Retained Earning
 Define Retained earning
account.[OB53]
 Enter company code {TATA},
P & L statement{X} and
account number{19999}
 Save details

10. Create G/L accounts with reference
Data transfer workbench
Copying
Creating manually
GL Master Record
Various options are available when creating G/L master records.

11. ACCOUNT GROUP OF
Liability
(2000000 TO 2999999)
1000000 GL Account
1010000 GL Account
1030000 GL Account
1999999 GL Account
ACCOUNT GROUP OF
ASSETS
(1000000 TO 1000000)
ACCOUNT GROUP OF
Fund Balance
(3000000 TO 3999999)
2000000 GL Account
2010000 GL Account
2020000 GL Account
2999999 GL Account
3000000 GL Account
3010000 GL Account
3020000 GL Account
3999999 GL Account
ACCOUNT GROUP OF
Revenue
(4000000 TO 4999999)
4000000 GL Account
4010000 GL Account
4010000 GL Account
4999999 GL Account
Create GL Account Manually [FS00]

12.  Enter general ledger account number
 Enter company code
 Click on new entry Template
 If company prepares consolidated financial statements for its corporate
group. Enter treading partner and group account number in GL
account.

13. Control data
 When you do not
want the system to
post any exchange
rate differences that
may occur, but you
want to clear several
currencies arising
from transactions
with your company
code currency (local
currency).
 Select the
appropriate tax
symbol.

14.  The Field Status Group field determines whether a field should be
suppressed, required, or optional during document entry

15. Define tolerance group for GL
 Define maximum limit per document entry.
 Tolerance groups for General ledger are created as per
organization requirements.
Without defining tolerance system will not allow to the user
enter any transaction in system.

16. Define tolerance group employee
T-
Group 1
T- Group
2
T- Group
3
Amount
per Doc.
10,000 1,00,000 10,00,00
0
Amount
per open
item
account
1000 10000 100000
Cash
Discount
0% 5 % 10 %
Payment
Differenc
e
0 0 0
 The SAP system doesn’t allow the postings beyond their limits.

17. Define tolerance group Customer & Vender
 It is not required to update the
tolerance group key.
 Update the payment differences of
gain & loss with amount and
percentage (for example :- 500
amount [gainloss]and 1%
adjustment by 100.)

18. Thank You
 Shubham Kava | kavashubham1998@gmail.com | +918530048138