SAP Financial Accounting

creating accounts, posting invoice, and posting payments

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Closed Caption:

this is a recording of the financial
exercise which is the first exercise
under financials and we have mentioned
before that financials is actually
integrated into majority of the margins
with in ASAP because every single magic
deals with money somehow either at the
beginning or at the end so you are
either buying or selling or incurring
costs and assigning that cost to a
particular unit or what we called cost
center within the organization
so we start with the first exist science
and in this exercise you will have to do
some setup before you can actually post
transactions to the general ledger
so the first exercise asked you to
create a new bank account in the general
ledger
so would go under accounting financial
accounting general ledger master records
general ledger accounts
and individual processing and center
now you have to understand the general
ledger have certain accounts in there
where each of these accounts is is used
in order to record specific transaction
so the fact we are that we are under
general ledger to create a bank account
will have to go to master records you
you understand the force that the bank
account is part of the master data which
means it continued to exist within the
system from one cycle to the next
you do not erase that information you
reuse it seemed like the vendor or the
customer or material so bank account is
part of the master data and you would
create the bank account under the
general ledger
so click on centrally
and now you your general ledger account
would be 10 then three numbers mine are
0 0 0 and five now
000 will be replaced with your GP I
number the last three digits of your GBI
number your company code since we are
creating in the US would use the US
remember that there are two subsidiaries
under GBI we have the US 0 0 and we also
have the one in Germany
we will copy because that already exists
in another bank and into this bank so
instead up feeling refilling data for
that particular new bank account you
with copy the information from an
already existing and bank account so
they asked you to go under general
ledger account and to create to choose
create with reference and the general
ledger account that you are copying from
is one and five zeros and it is under
the company called us
00 so it is also in in in in the US
you're asked to make sure that the count
group is liquid assets since the bank
account will hold cash and cash is
considered to be a current asset or what
we call a liquid assets that means it
can easily you use to buy materials up
the same like land or machinery that are
considered to be fixed assets
why are they called fixed assets because
it takes time for you to convert them
into actual cash
the liquid assets or the bank account is
considered to be a balance sheet account
remember p and n stands for profit
profit and loss
that's the same like your income
statements so that only include expenses
and revenue accounts the short texts
should be bank and the name that your
number so mine is 0 0 0 0 and the long
text should be bank account you you know
and now we need to save it
so the data has been has been saved
now will also create a reconsideration
account in general ledger and remember
we said three constellation accounts are
accounts that are used in order to
aggregate information from the sub
ledger to the general ledger
so for example we said that in the
general ledger all accounts payable are
grouped into just an accounts payable
account
whereas the sub ledger will have
individual vendor accounts accounts
payable is an account or is an account
this used to show the amount that you
owe your suppliers so of course you deal
with multiple suppliers with several
suppliers every supplier has their own
or has its own account in some legend
all of the supplier accounts get
aggregated in accounts paper that
aggregation happens or the transfer from
some ledger
- general let to general ledger is done
through the reconsideration account so
we go back and this time we are going to
in order we are going to create a
reconciliation account
it is the same path so if if you are
I assume you are still in one setting
going back and doing the second exercise
so you should see accounting financial
accounting general ledger master records
general ledger accounts individual
processing and sexually
that's exactly the same path that
took before so this time you are
creating a general ledger account that
is that starts with 11 and then
so instead of the 10 it will be 11 and
my number is 0 0 0 and the last digit is
5 viewers should be instead of the 000
should be your last three digits are the
GBI and this time we're coming
data from bank account 300,000 so we'll
go under general ledger account again
and with create with reference from
general ledger account
3 1 2 3 4 5 & company called s0
so it automatically tells you this is a
reconciliation account and again a
reconsideration account is about a sheet
account it is it does not deal with the
expenses or revenue
now we enter papers miscellaneous as the
short texts
yeah
and the end of table straight accounts
remember to put your numbers
yeah people miscellaneous and my number
yours
as I said is the last three digits of
your GI user ID and that's old and
saying
we create that expense account this time
which would be a prophet and us
so again go back and centrally the
account in starts seven slide your
number and ends with with with fine
and again it is you s0 and click
I general ledger create those reference
general ledger account that you would
copy from 7 4000 and it is us
20 and 10 and it would say that it is a
rent expense
so it's a profit and loss account
and you would put rent expense and your
number and again
the text is rent expense and see
we will create a cost element now the
cost element is a particular cost that
is incurred by the organizing element
can be salaries can be rent that that
would be an expense that you would think
so because cost element and that we said
it is an expense but usually that
expense is allocated to a particular
department so we are going to create it
under not the financial accounting but
under controlling
so for the previous three accounts the
bank account the accounts payable and
the rent the rent expense we created
then under financial accounting now
under the managerial accounting which is
controlling will create a cost element
as we said that cost element is
something that we have incurred an
expense that we inked it so it could be
salaries it could be rent but the most
important thing is the fact that it is
allocated to a cost Center to a
particular cost center to a particular
unit within the organization that
doesn't mean that this unit is paying
for the expensive get a look at the
expense get allocated for it because
that unit is using that resource so it
doesn't have to be the unit that's
actually paying for the expense it is
just a way for management to see how
much resources are being used by a
particular unit and how much output is
generated by that in itself to control
that they use what with all cost
elements
so this time as we said we will not go
under financial accounting but then go
under controlling because that that's
the imagine that's used for managerial
accounting those of you who have some
kind
an accounting background would
understand what I'm saying
so we'll go under controlling and cost
element accounting and master date again
and cost element of creating accounts
and individual processing and create
primary now you would and we talked
under controlling that there is a
primary element and there is a secondary
element
so a primary element has a one on one
has a one-to-one relationship with the
general ledger account
well as the secondary element may not
have does not have a corresponding
account in the general ledger
so you're asked to enter the controlling
unit of n 00
you can search and see what what is
there
so and a stands for north america
and the cost element that you are
creating is 75 and 30 and five
and it is then it from the first month
first step of the kind of the month so
that should be beginning of march
up intense infinitely so that's why you
have a 20-30 1999 and the last element
that you are copying from is 70 300 and
children gary is again
North America 00 ok and now you see that
the rent expense is being copied as we
said this is a primary cost element
which means it has and and corresponding
account in general ledger with radically
the rent expense
so now we have a cost element that we
will use in order to educate that trend
to the different units remember when you
pay rent tool and then luring you paint
you pay for the whole organization so
let's say you're renting a whole bending
that is
five stories each story has three
apartments or three units then that will
make up 15 units in your organization
yes finance or the financial department
would pay
we'll just got one check to the landlord
and for the whole some of the rent let's
say it is 15,000 then the 15,000 is then
allocated to the different departments
these on the square footage that they
occupy or it could be based on the
number of employees that are higher
but anyway the cost element is used in
order to educate the expense increased
among the different units within the
organization
so you just add your number
and save
this time you create a vendor master
record for the landlord the person who
actually went to you
so that's part of accounts baby will
have to go back to financials and bend
it would have an accounts payable
account so you close the general ledger
and we say accounts pavement and one
master record and create
they want you to leave the vendor blank
put the company called us 0 0 and the
account rule is and you have actually a
search so the interesting to look and
see what they are
ed and you look at KR ed and it's a
vendor so that type that cold
krnv stands for vendor you're saying
that vendor that the counter up creating
is of type
krnv which means that this person is
invented and we will put the vendor
number as 105 and then you were
GBI number my GI number is zero zero
zero yours should be as we sent 0 1 35
or whatever your number is and the
company
the force is with you
click and it
so you're asked to enter
- click on the address view which is the
current address the current you say to
address and we want to enter cut carbon
and properties as the name
and make sure that you put your GBI
number your search to is your GV I that
three kitchens postal code is 55 347
and it is in Eden pretty or even
training
the country is us and the region is M
and Minnesota
in English is selected as the thing
which it now we click on enter and
there's nothing to enter until payment
transaction accounting vehicle so we
need to wait until we have accounting
accounting information and we need to
enter the activation account and instead
of that 300,000 we need to change it -
11 and your GV I guess three digit
number 30 and five and you want to get
into and payment terms will be 0 0 0 1
and you want to invoices to be sent to
you
so make sure that you check double check
w voice is check everything looks fine
so we're going to say and we go back to
oak tree
now we want to create an invoice
received for rent expense so received an
eight boys from our vendor to pay the
rent
so when you go in and you can do that
right away because you're not you're not
buying anything remember in purchasing
we have to start with the requisition
and purchase order then wait for the
vendor to actually send you an invoice
for you to be able to end to enter the
the invoice receipt but here which is we
just have friend and we're paying it
every month so all I that the process
every month starts with an invoice being
sent from the vendor so we will be under
financial accounting of horses we are
dealing with money will go under
financial accounting and accounts even
and we want to enter and a particular
document so we go under document entry
and we want to enter an invoice and you
bend it
now we can't remember what the number
for the vendor your search term was and
these are the last three digits of your
GV I now I have them all and I need to
find the person the vendor that i just
created
and i know it is even pretty and that's
so it tells me that the vendor number is
1 250 26 and you want to enter today's
date as the invoice date
and I should be able also to see us
00 global bike as your company code and
the amount is 1504 you're entering a
15-time invoice for fifteen hundred
dollars and the account that you would
use for that says it is 11 in the
general ledger account is 75 your
numbered so remember my number is the 30
is yours
as we said is the last three digits of
your GV I so we know that 7 5 3 zeros
and our the GBI number and then five is
your rent expense
we need to enter under text we need to
enter invoice garden rent expense
yeah
and we need to put the cost center as n
a North America a chart
last thing is the class senton you need
to scroll to the to the right to be able
to see you
yeah
i'm going to choose the end a HR 2072
and then the next three digits are fewer
GBI
ok
machine is fine we're going to see the
invoice and it's a write down the number
for the invoice 19 and you think it
might be seven zeros and was four years
of course your number would be different
and not want to look at the general
ledger account balances and see that the
actual invoice we have entered is have
been posted to german adventures
well and we go under general edges
remember we set the Recon sensation
account will take from the individual
accounts for the different vendors and
post it to the accounts payable under
general
and you want to pay accounts from 75
I 2999
so I have one that is pivoted 475
hundreds of the current is 7,500
they tell you to adjust the view
if we double-click on that line
you see there is the posting that I've
just made for the fifteen hundred
dollars but there are also other
invoices that you see and in the
exercise that tends to try and explain
why we see multiple invoices when I'm
hoping that the answer is as obvious and
that is each one of you guys in the
class have posted that invoice so I see
that mine is is posted because the
general ledger account is 75 and the 30
is implied
so read expense 2000 and then account
136 has posted account 139 is posted 1
45 148
and that's it
so these are the different people within
the class that have posted rent expense
ok now we want to change the view little
bit so we are going to click on the
change layout and they ask you to choose
from amount in local currency -
local currency to mount in local
currency three local currency three tax
code
clearing document profit Center and
segments and you want to transfer them
so they won't be seen
then click OK and now you see that it
has become more concise and you can you
can see here is my transaction that i
just posted
so we look at the enjoy
let's look at the accounts payable in
the and stay balanced again
so once we're looking at under general
ledger one time another time under
accounts
favorite remember accounts p would have
the individual then their accounts
and 1 250 26 is the last under that we
create it
make sure that the company called is USU
0 and 2014 is the year and then activate
and you can see because we haven't paid
yet there is a credit for the vendor for
1500 with crediting are increasing
accounts favor for that particular
vendor by 1500 times
so we owe that ended 20 pi 1505
we need now to pay that ended so we want
to post
Damon
being the lender today
yeah
we are using a particular bank to pay
from
so should be 10 and then your GBI number
and fine and we are going to pay fifteen
hundred dollars and I just like a note
we with fourth invoice a child
we need to enter the account number for
the bend my fish should see what my menu
and i'm going to select coordinate
properties so the number his number one
the vendor number the landlord is 1250
260x mine of course
and now we want to take process open
itunes
so that's 1,500 that we all the door
so there isn't any money that's not a
signed document has been posted so i
already paid the vendor
I should now if I try and display the
balance
actually as you can so then it and read
it should be exactly
I want to see the bank account and see
the balance for the bank account and it
says that there is a created 1500
so an actual payment of 1500 has already
been done
if we try now to go under accounts
pavement rather than general ledger and
display the balances
for that particular band
you see now there is a bit of 1500
because of the payment and credit of
1500 so the first cryptic the credit
happens first because of the invoice
when I received the invoice and I post
it recording of the credit of 1500 for
that ended it shows on accounts payable
when I post-payment when I first payment
out of my bank account that i have a
1500 debit for the event
look at the line item you see that the
balance is is actually to you
so there is no balance for that for that
customer
the last statement is on the last step
is to look at the financial statement
and see the effect of the credit
about 1,500 for the rent expense and
debit because of payment so go on
general ledger and this time to go under
information systems because we want to
generate the report
so every time you want to generate the
report it's under information system
so the track accounts is g.e.d 00 and
the company code is us
remember this the the version for the
financial statements is G and then your
number
and you need to use a tree control with
layout one
ap and execute
and you get a number of warnings
and you can see the white patches
treatment for GI
now the numbers will not match what's on
on and the head down because we have
done several transactions in there that
you can see that
Beckett because we have just created the
bank account one or 10000 five years of
course should be 10 135 five
you should see the 1500 in there we can
go also under profited life and see that
there is an expense are 1500 so on
direct expense you see that there is a
fifteen hundred in there so that's all
for the first exercise and we have
another recording for the control