Nov
20
2012

What is General Ledger in SAP?

What is General Ledger (GL) in SAP ?

This article gives the complete configuration required to create SAP General Ledger (SAP GL) account in SAP-FI. This will show you the configuration for definition of Company, creation of General Ledger account in the company code, Charts of Account (COA).

SAP General Ledger (SAP GL) is a core element of SAP FI. General Ledger comprise all the transaction data for all the activities involved in the organization. Transaction data contains mostly Finance data. It also comprise retained earning, payroll. General ledger is also integrated with cost centers in controlling.

Company:

It is said to be an organization or a corporate group which has one or many Company code under it. The screen shots below will give the detailed step to define Company in SAP system. Most of the configuration relating to SAP is done in SPRO (SAP Project Reference Object); follow the navigation shown in the picture to Define Company in SAP, The definition of the company is shown above; The Company is represented using a Four Digit numerical character (it can also be alphanumerical) 4623 with the name Ketan Group of Industries.

Company Code:

It is said to be the representation of an independent balancing or legal accounting entity within the Corporate Group which can create its own financial statements; there can be ‘n’ number of company code within a corporate group.   Choose Second option to create New Company Code and First option to Copy and create new company with all the data from an existing Company Code.
Creation of Company Code 1000: Company Code 1000 is created.

Creation of Company Code 2000: Once the Creation of Company code is done they are to be assigned to the Company in SAP to achieve the Enterprise Structure.

                                            Company 4623- Ketan Group of Industries

Company Code 1000- Ketan Iron & Steel Company Code 2000- Ketan Paper Mills
What is General Ledger in SAP

What is General Ledger in SAP

Assign Company Code to Company: 

The Screen shot explains the assignment of the CC 1000 & 2000 to Company 4623. Thus a basic Organizational Structure is achieved in the Enterprise structure. Now the Financial accounting Global setting is explained below with configuration steps and screen shots.

Financial accounting

Global Settings: The Variant Principle
The Variant Principle is a Three Step Method used in the SAP system to assign particular properties to one or more objects, the steps are as below:

1) Define the variant,

2) Determine values for the variant,

3) Assign the variant to the object

 

Now check this : ASAP Methodology  , SAP Organizational Structure     SAP Posting Key

Free  SAP FICO Training        Business Processes associated with SAP FI

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