General Ledger Accounting

Overview
• Introduce key organizational elements in financial accounting,
G/L master records, and how to create postings using both the
Enjoy and Complex document entry screens

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Unit Objectives
After completing this unit, you’ll be able to:
• Describe the purpose of company codes and business areas
• Describe the options for assigning company code(s) to a controlling area
• Display a chart of accounts
• Display the G/L account directory
• Create G/L accounts
• Describe the special role of reconciliation accounts
• Maintain a financial statement version
• Execute G/L postings using the Enjoy transaction screen and the
traditional screen for complex posting
• Explain the structure of an accounting document
• Query a G/L account
• Run the balance sheet
• View cost elements

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Contents
• Organizational Structures for Financial Reporting
• G/L Master Records
• Accounting Transactions – Processing in the General Ledger

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Introduction to Accounting
Accounting Overview
• Accounting means the way it’s used to store the transactional data
in a systematic way based upon Accounting Principles
• There are two types of accounting methods:
• Finance – Financial Accounting for External Reporting purpose
• Controlling – Managerial Accounting or Costing for Internal Reporting
purpose

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Basic Accounting Principles
• Basic accounting principles which are useful to draw the financial
statements like Profit & Loss Account and Balance Sheet
Statements
• The transactions are recorded on the basis of classification of
accounts and rules pertain to Debit and Credit
• There are 3 types of Accounting Principles to post the day to day
transactions:
• Personal Accounts
• Real Accounts
• Nominal Accounts

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Personal Accounts
• Transactions relating to persons or firms are come under Personal
Accounts
• Accounting Rule: Debit is the Receiver and Credit is the Giver
• E.g. BOB paid cash to ALICE
• Accounting entry:
Alice A/c Dr 10,000
To Bob A/c Cr 10,000
• In this example, Alice’s account will be “Debited” (Receiver), similarly
Bob’s account will be “Credited” (Giver)

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Real Accounts
• Transactions relating to properties or assets come under Real
Accounts
• Accounting Rule: Debit what comes in and Credit what goes out
• E.g. Building purchased for cash
• Accounting entry:
Building A/c Dr 5,000,000
To Cash A/c Cr 5,000,000
• In this example, building account will be “Debited”, since it is coming into
the business and cash account will be “Credited”, since it is going out of
business

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Nominal Accounts
• Transactions relating to expenses or losses and incomes or gain come
under Nominal Accounts
• Accounting Rule: Debit all expenses and losses and Credit all revenues
and gains
• E.g. Salaries Paid – Pertains to Expense
• Accounting entry:
Salaries A/c Dr 2,000,000
To Cash A/c Cr 2,000,000
• In this example, salaries account will be “Debited”, since it is a nominal
account and cash account will be “Credited”, since cash is going out of business
• E.g. Interest Received on Investments – Pertains to Income
• Accounting entry:
Cash A/c Dr 5,000
To Interest A/c Cr 5,000
• In this example, cash account will be “Debited”, since cash is coming into
business and interest account will be “Credited”, since it is a nominal account

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Concept of Debit and Credit
• The words “Debit” and “Credit” have no specific meaning
• They are used only as Accounting Symbols
• In accounting, the Left Hand Side is called Debit and the Right
Hand Side is called Credit
• Debit is used to denote a receiver or receiving account and Credit
is used to denote a giver or giving account

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 Concept of Debit and Credit

Transaction Received Benefit – DR Giving Benefit – CR

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General Ledger Accounting
• General ledger accounting is based on the double entry accounting
system, where every transaction has both a debit entry and a credit entry
• The figure below illustrates how postings are debited and credited to
these accounts using a “T” account
• Debits are displayed on the left side of the T account, and credits on the
right side
• An increase in an asset account or an expense account results in a debit
posting, whereas a decrease results in a credit posting
• Conversely, an increase in revenue or liability results in a credit posting,
whereas a decrease generates a debit posting

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Scenario Example (1)
• A venture capitalist invests $50,000 on January 10, 2010, which
deposits into its bank account. In exchange, the investor receives
common stock at $1 per share. How is this transaction recorded in
the general ledger?
• The first step is to identify the relevant accounts
• For this transaction, the appropriate accounts are bank (#100000) and
common stock (#329000)
• The transaction will generate an increase in both accounts
• Because the bank account is considered an asset, there will be a debit
posting, while common stock, a liability, will receive a credit posting

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Scenario Example (2)
• A company purchases office supplies for $500 with a check
• Office supplies are expensed; that is, they are defined as money spent
rather than treated as an asset upon purchase, even if some of the
supplies remain unused
• In this case, the relevant accounts are bank and supplies expense

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Scenario Example (3)
• A company purchases $1,000 of office supplies, but on credit
rather than with cash
• In this case, the purchase and payment are recorded separately
• One account is supplies expense, which is debited by $1,000
• The offsetting account is payables–miscellaneous, which is credited by
$1,000
• Payment is made using the bank account ($1,000 credit)
• Finally, the payables–miscellaneous account is cleared ($1,000 debit)

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Questions
• BOB commenced business with cash 10,000
• Opened a bank account 5,000
• Bought goods from BOB 1,000
• Sold printer to BOB on credit 1,000
• Sold goods for cash 400
• Purchases goods for cash from BOB 200
• Drew cash from bank 500
• Paid rent to landlord 250
• Received cash from BOB 1,000
• Took a loan from BOB 2,000
• Office equipment stolen 500

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Organizational Structures for
Financial Reporting
Lesson Overview
• Organizational structures occur in all important functional areas
of the SAP system
• The most important organizational elements in Financial
Accounting are the company code and the business area
• The most important organizational element of the Controlling
application is the controlling area

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Lesson Objectives
After completing this lesson, you’ll be able to:
• Describe the purpose of company codes and business areas
• Describe the options for assigning company code(s) to a
controlling area

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Company Code
• A company code is an independent accounting entity (the smallest
organizational element for which a complete self-contained set of
accounts can be drawn up)
• E.g.: A company within a corporate group
• A company code has a unique, four-character key, which can be
alphanumeric

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Company Code (Cont.)
• The general ledger is kept at the company code level and is used
to create the legally required balance sheets and profit-and-loss
statements for the company code
• Financial statements are generally prepared at the company code level
• The financial data recorded in the general ledger are used to generate the
financial statements needed for external reporting
• A balance sheet is a snapshot of the organization at a point in time, which
identifies assets, liabilities, and equity
• A profit-and-loss statement (income statement) indicates the changes in a
company’s financial position over a period of time, which identifies
revenues, costs, and profits or losses
• A company code is specified on every financially based
transaction of mySAP ERP
• This is done either manually or by deriving the company code from other
data elements

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IDES Company Code (Example)

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Business Area

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Business Area
• The business segments, or branches, in which a group operates can
be set up in the SAP system as business areas
• Business areas provide an additional evaluation level for segment
reporting, for example
• Use of business areas is optional
• Business areas are internal divisions of an enterprise that are used to
define areas of responsibility or to meet the external reporting
requirements of an enterprise segment
• A segment is a division of an enterprise for which management monitors
performance (revenue, costs, profitability, etc.) separately from other
segments
• Business areas are generally company-code independent
• User can post to them from any company code
• The Business area field shows up as an additional account
assignment when posting to an account as long as the field is turned
on in configuration
• The field can be made a required entry during posting
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Business Area (Cont.)
• Financial statements are generated for each business area within
the enterprise
• A business area is often based on either the enterprise’s product
line or its geographic division, across company codes

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IDES Business Area (Example)

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Controlling Area

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Controlling Area
• The Controlling Area is the most important organizational
element in the Controlling application
• The latter is used for internal Accounting
• A controlling area identifies a self-contained organizational
structure for which costs and revenues can be managed and
allocated
• It represents a separate unit of cost accounting
• More than one company code can be assigned to one or more
controlling areas
• This enables a cross-company code costing between the assigned
company codes
• However, assigning more than one company code to the same controlling
area is possible only if all the assigned company codes use the same
operating chart of accounts and fiscal calendar year

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IDES Controlling Areas (Example)

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Unit Summary
You should now be able to:
• Describe the purpose of company codes and business areas
• Describe the options for assigning company code(s) to a
controlling area

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G/L Master Records
Lesson Overview
• Examine General Ledger (G/L) accounts in detail
• Discuss the reasons that a company code may need to be assigned
to more than one chart of accounts

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Lesson Objectives
After completing this lesson, you’ll be able to:
• Display a chart of accounts
• Display the G/L account directory
• Create G/L accounts
• Describe the special role of reconciliation accounts
• Maintain a financial statement version

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Overview
• The goal of financial accounting is to record the financial impact
of business activities
• These data are recorded in the company’s general ledger
• More specifically, the general ledger includes many accounts that
companies use to record financial data
• Each account tracks different types of financial data
• E.g. Some accounts record sales revenues, whereas others record the
costs associated with producing and selling products
• A list of accounts that can be included in a general ledger is called
a chart of accounts

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Chart of Accounts

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Chart of Accounts

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Chart of Accounts
• Each general ledger is set up according to a chart of accounts
• The chart of accounts contains the definitions of all G/L accounts
in an ordered form
• The definitions consist mainly of the account number, account
name, and the type of G/L account, that is, whether the account is
a P&L-type account or a balance-sheet-type account
• User can define an unlimited number of charts of accounts in the
SAP system
• Many country-specific charts of accounts are included in the
standard system

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P&L-Type Account
• Profit and loss (P&L) accounts are divided into revenues and
expenses
• Revenues are the money the company earns by selling its
products and services
• Expenses are the costs associated with creating and selling those
products and services

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Balance-Sheet-Type Account
• Balance sheet accounts are grouped into assets, liabilities, and equity
• Assets are what the company owns, such as cash, inventory of materials, land,
buildings, and money owed to the company by its customers (receivables)
• Liabilities are what the company owes to others, including money owed to
vendors (payables) and loans from financial institutions
• Owner’s equity refers to the owner’s share of the company’s assets

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Chart of Accounts Assignment

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Chart of Accounts Assignment
• For each company code, user must specify one chart of accounts
for the general ledger
• This chart of accounts is assigned to the company code in configuration
and is referred to as its operating chart of accounts
• A chart of accounts can be used by multiple company codes
• This means that the general ledgers of these company codes have
identical structures

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Company Code-Specific Settings

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Company Code-Specific Settings
• The accounts in the general ledger are defined based on the
selected chart of accounts
• The general ledger is an instantiation of the COA for a particular
company and can include some or all of the accounts in the COA
• Before user can use an account in a company code, user have to
maintain the account definition at the chart of accounts level
• User then create company code-specific settings, which are only
valid in the company code
• An example of a company code-specific setting is defining the account
currency
• When the account currency is the local currency of the company
code, one can post to that account in any currency

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Company Code-Specific Settings
(Cont.)
• Like most master data, the data in general ledger accounts are
segmented by organizational level
• COA account data include a COA or client segment and a company
code segment

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Company Code-Specific Settings
(Cont.)
• The COA segment typically includes an account number, short and
long text, an account group, and an indication as to whether the
account is a balance sheet or a profit and loss account
• Each account is assigned a unique account number to distinguish
it from other accounts in the COA
• Each account also includes a long text (description) and short text
(brief description) of the account
• Designating the account as either a balance sheet or a profit and
loss account has implications for the ways the balances in the
accounts are treated at the end of the year
• Specifically, balances in balance sheet accounts are carried
forward into the same account, whereas balances in the profit and
loss accounts are carried forward into different, specified
accounts

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Company Code-Specific Settings
(Cont.)
• Although the accounts in a COA can be used by more than one
company, each company uses the account in different ways
• E.g. The currency used and the tax-related data in different countries can
be different
• Therefore, the general ledger account requires certain company
code-specific data in addition to the COA data
• The typical company code data in general ledger accounts consist
of the following elements:
• Account currency
• Tax-related data
• Field status groups
• Open item management
• Line item display
• Reconciliation account data

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Company Code-Specific Settings
(Cont.)
• Account currency determines the currency in which all the
transactions are recorded
• Each country has to comply with distinctive tax laws that require
it to include different tax-related data in its general ledger
accounts
• The field status group determines both the screen layout for
document entry and the status of each field on the screen
• The available field status options are suppress, display, required, and
optional
• If a field is suppressed, then it is hidden; that is, it is not displayed on the
screen
• A field with the display status is displayed and cannot be changed
• The user must provide data for required fields, whereas data entry is
optional for fields with the optional status
• Different field status groups can be defined for different types of accounts

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Company Code-Specific Settings
(Cont.)
• Another element in the company code segment of a general ledger
account is open item management
• If open item management is enabled, then each item in the account is
marked as either “open” or “cleared”
• An item is designated as open until an offsetting (debit or credit) entry is
posted to the account
• At that point, its status is changed to cleared
• E. g. When a company ships a product to a customer, the amount owed is
recorded in a specific account. This item remains open until the company
receives a payment. The payment offsets the open item, which is then
marked as cleared.
• Typically, the open item management indicator is set for clearing
accounts, which are temporary accounts that hold data until these data
are moved to another account

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G/L Master Record (Central View)
• The Central View of the G/L Master Records shows the chart of
account data and the company code specific data

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Account Groups for G/L Accounts

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Account Groups for G/L Accounts
• Account groups are used to organize and manage a large number of G/L
accounts
• Whenever a new G/L account is created, an account group must be
specified for it
• Accounts with the same account group normally have similar business
functions
• You could, for example, have an account group for cash accounts, one for
expense accounts, one for revenue accounts, and one for other balance sheet
accounts
• The account groups are assigned number ranges
• Via the number ranges, user can control which account numbers are
permissible for cash accounts, expense accounts, etc.
• Account groups also control the appearanceof the company code
segment of G/L accounts
• That is, account groups control which fields are required for data entry, which
fields are optional for data entry, which fields are displayed only, and which
fields do not show up at all in the company code segment

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Account Groups for G/L Accounts
(Cont.)
• Accounts in different account groups require different types of
data when they are used in a company’s general ledger
• The data contained in account groups can include dates, tax-related data,
and organizational data
• These data can be designated as either required, optional, display only, or
hidden when the accounts are created

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Subsidiary Ledgers
• Some financial data are not directly maintained in the general ledger
• E.g. Customer accounts, which track the amounts customers owe and the
payments they have made, are maintained separately for each customer.
Although it is necessary to track sales and payments separately for each
customer, it is not necessary to include each customer account in the general
ledger.
• Similarly, data about each vendor and asset, such as an automobile, are
maintained in separate accounts. Vendor accounts track purchases from and
payments made to them. Asset accounts are used to track the purchase price
as well as increases and decreases in the asset’s value over time.
• Such accounts are maintained in subsidiary ledgers or subledgers, and
they are not part of the general ledger
• Although customer and vendor accounts are not part of the general
ledger, the data in these accounts must be reflected in the general ledger
• Companies accomplish this task by posting the data from subledger
accounts into special accounts in the general ledger called reconciliation
accounts

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Reconciliation Accounts

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Reconciliation Accounts
• Reconciliation accounts are general ledger accounts that
consolidate data from a group of related subledger accounts
• Reconciliation accounts connect subsidiary ledgers with the
general ledger in real time
• This means that a posting to a subsidiary ledger posts to the
corresponding reconciliation account in the general ledger at the same
time
• The subsidiary ledgers, which are connected to the general ledger
via reconciliation accounts, are the accounts payable, accounts
receivable, and asset ledgers
• Because the general ledger can include multiple reconciliation
accounts, it is necessary to indicate which subledger each
reconciliation account is associated with
• This information appears in the Reconciliation account for account type
field in the general ledger account master data

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Reconciliation Accounts (Cont.)
• One special characteristic of reconciliation accounts is that it is
not possible to post data directly into them
• Rather, data must be posted to subledger accounts, at which point they
are automatically posted to the corresponding reconciliation account as
well
• Thus, when a company sells products or services to a customer on credit,
the amount owed is noted in the customer’s subledger account and is also
posted to the corresponding reconciliation account (accounts receivable)
• Likewise, when the company owes money to a vendor for purchases it
made on credit, this amount is noted in the vendor’s subledger account
and is simultaneously posted to the corresponding reconciliation account
(accounts payable)
• The balance in the reconciliation account (e. g. accounts
receivable and accounts payable) is the sum of the postings in the
related subledger accounts (e. g. customers and vendors,
respectively)

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Transaction Figures

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Transaction Figures
• A transaction figure describes the total of all postings on an
account in debit or credit
• One transaction figure for debit and one transaction figure for
credit are always kept for each account in the SAP system
• The financial statements for the company code are calculated
using these transaction figures
• If a G/L account has line item display marked in its master record,
user can drill down from the balance of the account to the line
items and then to the documents
• If using business areas, transaction figures are also kept per
business area
• If user create a financial statement for the business area, the
transaction figures for that specific business area are used to
supply information for the financial statements

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Financial Statement Version

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Financial Statement Version
• A general ledger is kept in order to provide the information
needed to create a balance sheet and a profit-and-loss statement
• These reports have to meet country-specific requirements
• IDES, for example, would need to create financial statements based on
HGB (Handelsgesetzbuch – German standards) for company code 1000
(Germany), and based on US-GAAP (Generally Accepted Accounting
Principles) for company code 3000 (USA)
• To meet the various reporting requirements, various financial
statement versions have to be created in the SAP system
• In these financial statement versions, user define exactly which
accounts are to appear in which line items of the financial
statement
• Many financial statement versions are included in the SAP system
• When running financial statement reports, select a financial
statement version that contains the details of the report structure

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Types of Chart of Accounts

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Types of Chart of Accounts
• There are three types of charts of accounts:
• Operative COA
• Country-specific COA
• Group COA
• The operative or operational COA contains the operational
accounts that are used to record the financial impact of an
organization’s day-to-day transactions
• It is the primary COA maintained by an organization
• The accounts in the operative COA are mapped to alternative
accounts in country-specific charts of account
• Companies create these alternative accounts to meet special country-
specific reporting requirements

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IDES – Operating Chart of Accounts

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IDES – Operating Chart of Accounts
• The IDES company codes use the following charts of accounts:
• INT is used by company codes 1000, 2000, 2100, 2300, and 6000
• CAUS is used by company codes 3000 and 4000
• CAFR is used by company code 2200
• CAJP is used by company code 5000
• It was particularly important to the IDES board of directors that
the European company codes - Germany, United Kingdom,
Portugal, and Spain - all belong to the same controlling area, since
a great deal of activity takes place among these company codes
• Therefore, all four company codes had to be assigned to the same
operating chart of accounts (INT)

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IDES – Group Chart of Accounts
• Because not all company codes of the corporate group use the
same operating chart of accounts, a Group Chart of Accounts,
CONS, is being used for consolidation purposes
• The operating charts of accounts are assigned to this group chart
in configuration
• Once an operating chart has been assigned to a group chart, the
Group account number field becomes required in the chart of
accounts segment of the master record

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Lesson Summary
You should now be able to:
• Display a chart of accounts
• Display the G/L account directory
• Create G/L accounts
• Describe the special role of reconciliation accounts
• Maintain a financial statement version

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Accounting Transactions –
Processing in The General
Ledger
Lesson Overview
• Learn how to create G/L postings using both the Enjoy and the
traditional complex posting screen
• Analyze the structure of the financial document
• Examine the effects of the postings by analyzing the transactions
on the posted accounts and by running the balance sheet
• See how external and internal Accounting are integrated by using
cost elements

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Lesson Objectives
After completing this lesson, you’ll be able to:
• Execute G/L postings using the Enjoy transaction screen and the
traditional screen for complex posting
• Explain the structure of an accounting document
• Query a G/L account
• Run the balance sheet
• View cost elements

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Accounting Document
• A financial accounting document (FI document) records the
impact (financial data) of a transaction step on financial
accounting
• An FI document consists of a header section and a detail or line
item section
• The header includes data that apply to the entire document, such as
document number, document type, various dates, company code,
currency used, and a reference number
• A document type is a two-character code that identifies the specific
business process step that generated the document
• Commonly used document types include customer invoice (DR),
customer payment (DZ), goods issue (WA), and goods receipt (WE)
• A document type determines the document number range and the
account type associated with the posting

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Structure of An FI Document

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Accounting Document (Cont.)
• The detail section typically consists of two line items: a debit item
and a credit item
• Each line item includes the account number from the general
ledger, a description of the account, an indication of whether the
account is debited or credited, and the amount
• The debit or credit is indicated by a posting key, which is a two-digit code
that determines how a line item is posted
• Specifically it identifies the account type, indicates whether the line item
is a debit or credit posting, and specifies the field status of additional data
needed to post the item
• Examples of account types are customer (D), vendor (K), asset (A),
material (M), and general ledger accounts (S)
• Examples of additional data are cost centers and business areas

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Posting Keys Examples

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G/L Account Postings

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G/L Account Postings
• Beginning with R/3 Release 4.6, user can comfortably create and post a
G/L account document using a one-screen transaction
• The entry screen is divided into the following areas:
• Work templates
• User can select screen variants, account assignment templates, or held documents as
references
• A held documents is a document that a user saves without posting it, with the idea that
the user will complete and post the held document later
• To return to the original line layout of the GL document entry table, right-click on the
screen, and choose Reset screen variant
• Header data
• Applies to the whole document, such as posting date and document type
• Some of the header data can be in display format only, or hidden from the user via editing
options
• Line item information
• Here, line items of the document are entered
• Information area
• Here, the debit and credit balances are displayed by using a traffic light icon

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G/L Document Entry Enjoy Screen

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Standard/Complex Postings

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Standard/Complex Postings
• Complex or general postings correspond to the old, more difficult
standard posting transaction (t-code: FB01)
• In the initial screen, user enter the data for the document header.
Additionally, user enter the posting key and the account for the
first line item. The posting key provides the system with
information regarding the account type (G/L account, customer,
vendor, asset and material) and can influence the layout of the
entry screen for the line item, which will be seen in the next
screen. The key driver of the layout of the entry screen for the line
item is the field status group of the account that is being posted to.
User saw the field status group in the company code segment of
G/L master records.

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Standard/Complex Postings (Cont.)
• With this information (posting key and field status group of the account
to be posted to), the detailed entry screen for the first line item is set up.
When user choose Enter, user proceed to the next screen, which contains
the Amount field and Additional account assignment fields for the first
line item. This includes, for example, business area, text, and Cost Center.
• At the bottom of the second screen, user enter the posting key and
account for the second line item of the posting. When user choose Enter,
user proceed to the third screen, which contains the Amount field and
Additional account assignment fields for the second line item. User
continue with this same process for all the line items that make up the
posting.
• In order to pass information from Financial Accounting to Management
Accounting, a cost element for the expense account to be posted to must
exist. A primary cost element can be created automatically when a new
G/L account is created. Cost/revenue elements only exist for P&L
accounts. User can branch to the cost element from the G/L master
record.

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G/L Document Entry Complex First
Screen

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G/L Document Entry Complex
Second Screen

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Important Standard Document
Types

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Document Types
• Document types are used to distinguish between and order
various accounting documents easily
• Each document is assigned to one document type, which is
entered in the document header
• Document numbers are provided by the document number ranges
assigned to one or more document types
• For G/L account postings, document type SA is most often used,
although other document types are possible, such as
accrual/deferral documents, valuation documents, and so on

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Posting Key

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Posting Key
• Each line item contains exactly one posting key
• Posting key is an instrument that is used for internal control and is
entered in the complex posting screen to tell the system:
• Which account type is being posted to
• Whether the line item is a debit or credit posting
• In the Enjoy transaction, user no longer need to enter the posting key
• Instead, debit represents posting key 40 and credit represents posting key 50
• These posting keys appear in the document and their control functions are
still relevant
• In the SAP system, there are a large number of standard posting keys
• Each posting key is used for posting either a debit or a credit to one
account type
• For postings in the general ledger, user need only two posting keys:
• 40, for debit items
• 50, for credit items

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Standard Posting Keys

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Account Information

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Account Information
• Account information can be obtained at three levels—account balance
display, line items display, and original FI document
• The balance display and the line item display are provided to display the
account data
• The Line item display is only possible for G/L accounts for which the
correspondingFunction has been activated in the master record
• The balance display is an overview of the saved transaction figures of an
account
• User can drill down from the balance to a list of the items that make up
the balance
• From this line item list, user can drill down to the document containing
this line item
• From there, user can see the complete transaction by selecting Document
overview
• If there is an original document for this mySAP ERP document and it was
archived optically, user can display it as well

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Account Information

90
Lesson Summary
You should now be able to:
• Execute G/L postings using the Enjoy transaction screen and the
traditional screen for complex posting
• Explain the structure of an accounting document
• Query a G/L account
• Run the balance sheet
• View cost elements

91
Unit Summary
You should now be able to:
• Describe the purpose of company codes and business areas
• Describe the options for assigning company code(s) to a controlling area
• Display a chart of accounts
• Display the G/L account directory
• Create G/L accounts
• Describe the special role of reconciliation accounts
• Maintain a financial statement version
• Execute G/L postings using the Enjoy transaction screen and the
traditional screen for complex posting
• Explain the structure of an accounting document
• Query a G/L account
• Run the balance sheet
• View cost elements

92
Test Your Knowledge
1. A legal entity is represented by a ____________________ in SAP.
2. Key business segments are represented by ____________________ in SAP.
3. More than one company code can be assigned to a controlling area.
o True
o False
4. To which chart of accounts must a company code be assigned in order
for postings to occur?
❑ A. Group
❑ B. Country
❑ C. Operating
❑ D. None of the above
❑ E. All of the above
5. What are the two parts of a G/L account and what are the two reports
that show those parts?

93
Test Your Knowledge (Cont.)
6. The ____________________ is assigned a number range. This controls how the
Company Code segment of a G/L account is displayed on the screen.
7. Reconciliation accounts can be posted to directly.
o True
o False
8. The ____________________ determines the structure of a balance sheet and an
income statement report: This specifies which accounts correspond to
which items in the report.
9. A document consists of two parts: a ____________________ and the
____________________.
10. There are two posting keys for postings to G/L accounts: ____________________
for debit postings and for ____________________ credit postings.
11. It is possible to drill down from an account balance to the line items that
make up that balance for all G/L accounts.
o True
o False

94
Test Your Knowledge (Cont.)
12. A posting key allows posting to just one account type.
o True
o False
13. When a document is posted, a number is assigned to that document.
This number comes from number range assigned to the
____________________ in the header of that document.
14. In order for information to pass over to the controlling module when
posting to an expense account as part of an FI transaction, a
____________________ must exist for the expense account that is being
posted to.
15. When a transaction is posted in FI, it automatically appears on the
balance sheet.
o True
o False

95
Question & Answers