Anyone has the basic intro of FI terms explaination in SD?

[Former Member]

Hi Team,

Is there any one has the basic intro for FI terms in SD? Coz i really quite not understand those FI terms like G/L account/Accout group/revenue account determination..etc.

And what kind of deep relation between FI and SD.

Thank you!!

[Lakshmipathi · Accepted solution]

Hoo Laa

1) G/L Account

To create accruals and post payables, the system must first of all determine the correct G/L accounts for posting in FI.

In short, we can also call G/L Account as a book of final entry summarizing all of a company's financial transactions, through offsetting debit and credit accounts.

2) Account Group

Using the account group, you can group the G/L accounts according to functional area.

You can define any number of hierarchical structures of accounts for use in the information system, allocations and planning. These structures are called "Account Groups". Each account group is assigned to a chart of accounts. You can only use an account group in multiple controlling areas if those controlling areas use the same chart of accounts.

The account group also defines the set up when creating a G/L account in the company code and chart of accounts. By defining the number interval and the screen layout, you simplify G/L account creation by reducing the number of entry fields.

3) Revenue Account Determination

You can define the Revenue Account for transferring billing values from SD to FI module. Revenue account determination is carried out using the condition technique.

Many companies require that revenues are calculated according to time period. This means that the revenues must be implemented in the posting period, in which the service was carried out, and not in the posting period in which the billing document was set up. The revenue recognition function in the SAP R/3 system helps you to fulfil these requirements and separate revenue recognition from the billing process. The R/3 system offers a flexible solution to companies using various methods of revenue recognition

thanks

G. Lakshmipathi

[Former Member]

good

[Former Member]

Integration of SD with FI

1. Whenever you create a delivery with reference to a sales order, goods movement takes place in the bacgground. eg. In case of standard sales order, you create an outbound goods delivery to the customer.

Here movement 601 takes place. This movement is configured in MM. Also, this movement hits some G/L account in FI. Every such movement of good s hits some G/L account.

2. The accounts posting in FI is done with reference to the billing documents (invoice, debit note, credit note etc) created in SD. Thus this is a link between SD and FI

3. Tax determination: In case of a tax determination also, there is a direct link between SD and MM

[alpesh_saparia3]

G/L Account

G/L account master records contain the data that is always needed by the General Ledger to determine the account's function. The G/L account master records control the posting of accounting transactions to G/L accounts and the processing of the posting data.

In the standard system, all business transactions which are posted to G/L accounts are updated in the general ledger.

Account Group

Account groups determine which fields you can configure on the G/L master record.

The standard SAP require at least two account groups, one for balance sheet accounts and one of the profit and loss accounts.

OBD4 - Define Screen layout per account group (G/L Accounts)

• Double click on the line items.

• You can define the fields as Suppress, Requried Entry, Optional Entry or Display

After the definition, you can check it with FSP3 - Chart of Accounts display.

Revenue Account Determination

Revenue account determination in Warranty Claim Processing serves to automatically determine the G/L accounts to which the revenue, sales deductions (additions and deductions) and tax should be posted when posting the credit memos to the claimant or debit memos to the reimburser. Amounts from debit memos to the reimburser are posted as positive revenue, amounts from credit memos to the claimant are posted as negative.

You can do revenue account determination in transaction VKOA.