SAP S/4 HANA FINANCIAL

ACCOUNTING
Unit 3 – Master Data

19 November 2018
 Master Data

The bette r the quest ion. The better the answer.

The bette r the world works.
Chart of Accounts

The chart of accounts is a variant that contains the structure

and basic information of a general ledger account. It is
defined with a Four-character ID and has the following
components:

- Chart of account key

- Name of the chart of account
- Maintenance Language
- Length of the G/L account number
- Group chart of accounts (Consolidation)
- Block indicator

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Chart of Accounts (cont’d)

Length of the G/L account number

The account number of a G/L account can range from 1 to
10 digits in length. In the absence of a default value, the
system assumes that no cost element is to be created.

Group Chart of Accounts (Consolidation)

This account number is used for cross-company code
reporting if the company codes use different charts of
accounts.

Block indicator
No company code can use the Chart of Accounts

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Chart of Accounts (cont’d)

The chart of accounts (for example, YCOA, IKR, CAUS, or

any other chart of account applicable for a country) must be
assigned to every company code, which needs to maintain
the accounts based on the structure of the chart of accounts
concerned.

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Basic Settings of a Chart of Accounts

SAP IMG: Financial

Accounting > General
Ledger Accounting >
G/L Accounts > Master
Data > Preparations >
Edit Chart of Accounts
List

Transaction Code:
OB13

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Assigning the Chart of Accounts

Company Code must be assigned a chart of accounts. It is

possible to assign one chart of accounts to several company
codes.

The Controlling (CO) and the Financial Accounting (Fl) use

the same chart of accounts. If company codes use cross-
company code controlling, the company must use the same
chart of accounts.

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Chart of Accounts Segments

The chart of accounts contains basic information about

accounts. This information is summarized in a chart of
accounts segment.

The chart of accounts segment of a G/L account contains the

following information:

- Account number
- Name of the account
- Control fields
- Consolidation fields

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Fields in a Chart of Accounts Segment

This is the General Data of the General Ledger

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Fields in the Company Code Segment

This is the Company Code specific data of the General

Ledger

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G/L Account Types – Balance Sheets

Balance Sheet

The balance of a balance sheet account is carried forward at

the fiscal year-end

Non-Operating Expense or Income

Records expenses or gains from activities that are not part of

the main purpose of the company, such as gains realized
from financial investments by a manufacturing company.

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G/L Account Types – Profit and Loss

Non-Operating Expense or Income

Records expenses or gains from activities that are not part of

the main purpose of the company, such as gains realized
from financial investments by a manufacturing company.

Primary Costs or Revenue

Functions as a cost element for primary costs or revenue. It

reflect operating expenses such as payroll, selling expenses,
or administration costs.

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G/L Account Types – Profit and Loss (cont’d)

Secondary Costs

Functions as a cost element for secondary costs. Secondary

costs result from value flows within the organization, such as
internal activity cost allocations, overhead allocations, and
settlement transactions.

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Accounts in Closing Procedure

The accounts are treated differently in the (Balance

Carryforward) year-end closing procedure:

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Retained Earnings Account

Users can define the retained earnings account in

Customizing. You can then assign this account to expense
accounts during the creation of the master record of the
general ledger account.

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Retained Earnings Account (cont’d)

SAP IMG: Financial

Accounting > General
Ledger Accounting >
Master Data > G/L
Accounts > Preparations
> Define Account Group

Transaction Code:
OB53

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Account Groups for G/L Accounts

Different types of accounts can be arranged into different

account groups.

- Cash accounts
- Material accounts
- Asset accounts
- P&L statement accounts

By assigning a number range to an account group, you can

ensure that accounts of the same type are within the same
number range.

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Account Groups for G/L Accounts (cont’d)

SAP IMG: Financial Accounting > General Ledger

Accounting > Master Data > G/L Accounts > Preparations >
Define Account Group

Transaction Code: OBD4

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Account Groups for G/L Accounts (cont’d)

SAP IMG: Financial Accounting > General Ledger

Accounting > Master Data > G/L Accounts > Preparations >
Define Account Group

Transaction Code: OBD4

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Account Group Controlled Field Status

The field status enables you to control the display and

maintenance of the master data of an account.

You can set any one of the following as the status of a field:

The Account currency and Field status group fields are

always the required entry fields. The status for these fields
cannot be changed.

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Field Status for G/L Master Data

Fields accessed through the transaction Display Master Data

can be either displayed or hidden because you cannot make
an entry in a Display transaction. If you do not want to use
the transaction-specific control. then you can set the field
status for all fields to Optional.

The Optional field status has the lowest priority, so the

account group-specific control is always used to define the
field status.

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Reconciliation Accounts

Reconciliation accounts are G/L accounts that receive

postings from Subsidiary Ledgers.

All postings to the subledger accounts are automatically

posted to the assigned reconciliation accounts. This ensures
that the general ledger is always updated.

The following are typical reconciliation account types:

- Receivables, Payables, Assets and Materials

Amounts cannot be posted directly to reconciliation

accounts.

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Open Items in G/L Accounting

Open item management is a prerequisite for checking

whether a given business transaction has an offsetting
posting. Open items and cleared items can be displayed
separately, so it is easy to identify the business transactions
that still need to be cleared.

When the Open Item Management indicator is set in the

master record for a general ledger account, the items posted
to this account can be in one of the following states:
- Open
- Cleared

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Accounts in Local Currency

When you define a company code, you also need to define

the company code currency. You can select one of the
following currencies as account currency:
- Local currency
- Foreign currency

If you select the local

currency, you can post
to this G/L account in
any currency. Other
currencies are converted
into the local currency
for each line item.

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Collective Processing

SAP S/4HANA provides collective processing functions for

the G/L account master records.

You can make changes to the master data of several G/L

accounts simultaneously.

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Group Chart of Accounts

In many cases, corporate groups are required to issue

consolidated financial statements, including all companies of
the group. Some of the company codes of the group may
have to use special charts of accounts to meet legal
requirements.

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Special Chart of Accounts for a Consolidated
Financial Statement
1. Create a group chart of accounts that contains all of the
group accounts.
2. Assign the group chart of accounts to each operational
chart of accounts. Once this is done, the field Group
account number in the chart of account segments of the
operational charts of accounts becomes a required entry
field.
3. Enter the group account number in the chart of accounts
segment of the operational account. Different accounts of
one operational chart of accounts can refer to the same
group account.
4. Use a financial statement version for the group chart of
accounts.
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Country Chart of Accounts

SAP S/4HANA offers the possibility of assigning a country

chart of accounts. With a local chart of accounts you can, for
example, assign the same operating chart of accounts to all
company codes without the need for a separate group chart
of accounts.

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Profit Centers Segments

The Segment Characteristic

The segment characteristic is a standard account

assignment object available in SAP S/4HANA (Fl), that
allows you to create evaluations for objects or entities below
the company code level.

The objective of the segment characteristic is to enable a

detailed analysis of the various business activity areas, such
as markets or products, of a broad-based enterprise

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Derivation of a Segment

You can save a segment in the master data of a profit center.

When you post to a profit center, the segment is posted
automatically.

Segment posting does not take place if a profit center does

not have a segment. It is a standard practice to derive the
segment from a profit center.

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Derivation of a Segment (cont’d)

The Segment characteristic is derived from the characteristic

Profit Center, which exists in various SAP objects above.

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Managing Customer and Vendor Accounts

Business Partner - Customer and Vendor Accounts

SAP Business Partner (SAP-BP) is the central business

partner management tool at SAP S/4 HANA. Therefore, the
management of vendors and customer accounts occur using
this tool.

Technically, this subledger uses its own vendor and

customer master records, which are integrated with all
accounting transactions, such as creating business
transactions on accounts and processing posting data.

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Business Partner — Customer Account (Fl)

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Business Partner — Vendor Account (Fl)

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Business Partner General Data

Application-neutral data, such as name, address, bank

details, and payment cards, is stored in the general data of
the business partner master record.

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Business Partner Role

A business partner can have several roles:

- Contract Partner (Fl-CA)

- Fl Vendor (Fl-AP)
- Fl Customer (Fl-AR)
- Customer (SD)
- Supplier (MM)

- Prospect (Potential Customer)

- Business Partner (General)

In general, a business partner (BP) role corresponds to a

business context in which a business partner can appear
and provides the application-specific data.

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Business Partner Category

Term used to classify a business partner as a natural person

(for example. a private individual), group (for example,
community of heirs), or organization (legal entity or part of a
legal entity, such as a department of a company).

The business partner category determines which fields are

— in principle — available for data entry.

Example:
Organization, legal form should be entered in one of the
fields. Person, you enter the first name, last name, gender,
and so on.

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Business Partner Grouping

Each BP has to be assigned to a grouping when you create

the business partner. The grouping determines the number
range (external or internal).

You cannot change the assignment afterwards.

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BP – Customer / Vendor Integration

Accounts Payables uses the BP to manage the vendor

master records. Accounts Receivable uses the BP to
manage the customer master records.

Technically, the AP and AR subledgers use their own

separate set of master records, which are integrated in all
accounting transactions, such as creating business
transactions on accounts and processing posting data.

SAP S/4HANA, business partners are managed as vendors

or customers in Financial Accounting and as business
partners in other applications.

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BP Customer Integration — Number Ranges
and Groupings
SAP IMG: Cross-Applications Component > SAP Business
Partner > Business Partner > Basic Settings > Number
Range and Groupings

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BP Customer Integration -— BP Role
Category and Account Groups
SAP IMG: Cross-Applications Component > Master Data
Synchronization > Customer / Vendor Integration > Business
Partner Settings > Settings for Customer Integration

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Account Groups for Customers or Vendors

In the same way as for G/L accounts, customer and vendor

accounts, are stored in various account groups, so that they
can be organized and managed more easily.

You assign number ranges to account groups. These define

the account number given to the master record.

Number ranges can be defined in two ways:

- Internal number ranges – Automatic Assignment

- External number ranges – Manual Assignment or Adopt

BP Number

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Account Groups for Customers or Vendors

The account group allows you to control the screen layout of

all areas of the master record, not just the company code
data, as is the case with G/L account groups. Because
vendor accounts and Customer accounts in S/4HANA will be
maintained using the Business Partner, it is recommended
that you control the screen layout with the tools offered by
the SAP Business Partner customizing.

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Segments of Customer and Vendor Accounts

Customer and vendor account master records have

segments at the following levels:

Client level
Contains general data that can be accessed throughout the
organization.

Company code
Contains company code-specific data. Any company that
wishes to do business with a specific customer or vendor
has to create a company code segment for this customer or
vendor

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BP Role : Customer FI

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BP Role : Vendor FI

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BP Role : Supplier

For the Procurement Process to be used in Materials

Management for a Vendor, the BP master record of that
vendor must have a corresponding Business Partner Role
used for Material Management (for example, BP-Role
FLVNOl — Supplier).
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BP Role : Supplier

Any sales area that needs to do business with a customer

has to first create a sales area segment.

This segment contains data that is specific to the sales area.

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Field Status in Master Records of
Vendor/Customer)
The field status for Vendor and Customer accounts is
important, because it is helpful, if important fields are marked
and require entries.

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Controlling the Field Status

Field Status Settings - Business Partner

The layout of
customer or vendor
master data
screens can be
affected by the
following factors, as
described in the
following table.

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Controlling the Field Status (cont’d)

SAP IMG: Cross-Applications Component > SAP Business

Partner > Basic Settings > Field Groupings

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Number Ranges for Customer or Vendors

There are separate number ranges for customer and vendor

accounts. You can define whether the number assignment is
internal or external.

You can assign each number range to one or more account

groups.

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One-Time Account Master Records

These master records contain receivables and payables for

one-time customers or vendors. Compared to other master
records, a one-time account master record does not contain
any information about a specific customer or vendor
because it is used for more than one customer or vendor.

You enter the customer-

specific or vendor-specific
data directly in the
document during posting.

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Dual Control Principle

According to the dual control principle, one person is allowed

to make changes to customer or vendor master data, while
another is responsible for confirming these changes. This is
usually done for critical customer or vendor changes.

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Dual Control Principle (cont’d)

You can confirm the changes for a single customer or

vendor. Alternatively, you can get a list to confirm the
changes.
The following fields are available to restrict the confirm
changes list:

- Customer or Vendor
- Company code
- Accounts not yet confirmed
- Accounts rejected
- Accounts to be confirmed

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Dual Control Principle (cont’d)

Before applying the dual principle, define the fields for dual
control in the customer or vendor master records in
Customizing.

If you define a field in the customer or vendor master record

as Sensitive, then SAP S/4HANA blocks the payments for
the corresponding customer or vendor if an entry is changed.
The system only removes this block when an authorized
person confirms or rejects the change via .

You can display the changes made to the customer or

vendor master record for all accounts using reports
RFDABLOO or RFKABLOO.

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Definition of Sensitive Fields

SAP IMG: Financial Accounting > Accounts Receivable and

Accounts Payable > Vendor Accounts > Master Data >
Preparations for Creating Vendor Master Data > Define
Sensitive Fields for Dual Control (Vendors).

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Confirmation of Changes of Sensitive Fields

Transaction Code: FK08

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References:

► Course Code TS4F01 via SAP Learning Hub or SAP

Training Courses
► https://training.sap.com/course/ts4f01-financial-accounting-in-sap-
s4hana--academy-part-i-classroom-005-us-en/
► In E-Learning method, TS4F01 is divided into two parts

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