Major functions of FA, GL Accounting implementation in SAP HANA GUI 730

Financial accounting is the process of record-keeping, summarizing, and reporting of business transactions resulting in the business operations over a period of time. Financial statements that companies use to show their financial performance and position to people outside the company, including investors, creditors, suppliers, and customers.

The process of financial accounting is composed of some necessary functions, they are Recording, Classifying, Summarizing, Interpreting, and Communicating.

In the sense of SAP FI, Financial Accounting Components are

• General Ledger Accounting

• Accounts Payable

• Accounts Receivable

• Asset Accounting

  • Bank Accounting

1) General Ledger Accounting:

The general classification of accounts that usually ledger account involves are

· Assets- Cash, Accounts Receivable

· Liabilities- Accounts Payable, Loans Payable

· Stockholders’ equity- Common Stock

· Operating revenues- Revenues through Sales

· Operating expenses- Rent Expense, Salaries Expense

General Ledger FI Account Integration

General Ledger Functionality

· FI-General Ledger

· Master records management: GL Accounts

· Document entry: direct posting, recurring posting, reverse posting, automatic posting, drill-down capability

· Periodic Processing: Closing, interest calculation, automatic clearing, foreign currency valuation, Tax management, archiving

· Reporting

General Ledger overview based on SAP FI

General Ledger Account Posting(Journal Entry)

General Ledger Accounts Posting (SAP Screen)

2) Accounts Payable:

Accounts payable in the FI module integrate with the Material Management module, or purchasing system, where deliveries and invoices are managed according to vendors.

3) Accounts Receivable:

Posting in accounts receivable are also recorded in the general ledger.

Several tools for users to monitor open items, such as account analysis, alarm reports, due date lists, and flexible dunning programs are provided as standard functionality in SAP.

4) Asset Accounting:

Asset Accounting is closely integrated with Material Management or Production Planning module. When an asset is purchased or produced in-house, invoice receipt, goods receipt, or material is withdrawn from the warehouse would be posted in the Asset Accounting module. At the same time, depreciation and interest would be passed on Financial Accounting and Controlling.

5) Bank Accounting:

Bank accounting includes management of bank master data, cash balance management such as check and bill of exchange management, and creation and processing of incoming and outgoing payment as its related processes.

So, as we see there are five main functions in SAP FI (GL Accounts, AP, AR, Asset Accounting, and Bank Accounting) In this article only cover the GL SAP entry process partially near future I will write another article to cover others processes as well. Thank you for reading.

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