GL Accounts (Part 5)

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So, in F-02 I’m posting. You see document. 

Company code DRLB. Now here, what I’m doing, I’m posting in US dollars, USD, what is the rate? Here, there are 2 things. Now let me update the rate in foreign exchange rate tables. So first, I can update the foreign exchange. So, when I’m posting in my company called currencies INR and I’m posting in US dollars, I need to tell the system what the exchange rate is. Go to SAP NetWeaver, General settings, Currencies, Enter exchange rates. The T code is OB08. 

Now here I need to see new entries. Here exchange rate type. There are different types of exchange rates. One is average exchange rate, bank rate, market rate. So many things are there. 

Let me take, average rate, that’s the standard one. Generally, we take the average. Standard translation at average rate means, for example, say here, I’m taking one average rate. Maybe that maybe the day average or week average or month average rate maybe. At the same time, day to day, I can change. So, both will see. Both the situations will be checked. 

Let me tell you, first of all, standard translation at an average rate. This is M. We have P, standard translation for cost planning. And we have G, standard translation at bank buying rate. B, standard translation at bank selling rate. So, these are the things we use in case of foreign currency valuation. But now we are not going for the valuation. Valuation, we’ll discuss in miscellaneous topics. Instead, we are going to post only accounting entry in foreign currency. Now I’m taking M. M means average translation rate valid from, say, what is today, 3rd September. I’m taking it from 3rd September. So, 03/09/2013. From USD. Say, the direct quote is let us take 66 rupees. Convert it into INR. This is 1. 

Next, I’m taking again M. Same, 03. GBP, Great Britain pound. GBP is equal to, let me take, 99 rupees. Exactly worth 6699. Into INR. 

it says no exchange rate conversion factors could be found. So we click on Maintain. So, from 39 onwards. Ratio 1 is to 1. 

This we have done. Come back to our posting. Now I want to post US dollar. Right. Say for example, I’m posting on accounting entry. Let me take wages, bonus, office, telephone, office maintenance. Say some printing and stationery, we are buying from imagine that, from foreign stationery, we are paying in US dollar. Currency US dollar. Press enter. Then system will show you amount in USD, amount in local currency. Say for example I’m posting 100. Testify foreign currency. Just enter. 

See here, what is the rate it will take, See, 66 we have given. So, system, whatever the table rate that we have given, system is taking that rate. Here, I’m taking my bank account. 50. 200405. Same 100. Let me save it. Right. 

We select post and it says Document number 23 was posted. Let us check display. Document tab, click display, it’ll take us to T-code FB03. Immediately, you can look into that. 

See, 100 US dollar. But as per the company code currency, it should be in INR. I want to see an INR also. Click on display document currency, it will show you 6600. Again, you can click there to see it in dollars. And, one more entry I’m posting now. I’m going to post again USD. But here I’m telling to the system, right, my finance department told me, right, today we have purchased dollar at rate of 67 rupees. So that’s why now my table rate is showing 66. Now I want to take 67. I can take 67.

If I’m going to take 67 here, whatever the rate that you are going to take, that will override the table rate. In the table, I have given 66, but system will caution us. Let me check. 400304. 

System exchange rate 67 deviates from the table rate of 66 by 1.52%. So, the percentage system may give you. So, it will take 67. Alright. Save it. Similarly, I’ll post one more entry once we post one more GBP currency, then we’ll go to the GL account and we’ll see. Say I want to take now pound. GBP, order we have given at 99 rupees. 

See? 99. System picks up exact the rate whatever we have updated in the table.

 

Now let me check. GL account. Right. GL account. So financial accounting. General ledger account. FSNL. Right. 400304. Printing and stationery. Right. It is showing company called currency. See. Double click. Right.

So, 6600 previously, then second entry, 6700, then 9900. But why is the system showing in the general ledger the company local currency? Because we have already chosen while creating the company code. Company code currency we have chosen as INR. So that’s why all books of accounts will be maintained in INR only. Now I want to see the USD in this account. Can I see that? Then, yes. Obviously, you can see that. Come back. Click on Document currency. Then the system will ask you which currency you want to see

I want to see USD. Double click on this. 

See 200 we have posted. Double click on this. 

In USD, you can see. And I want to see both INR as well as USD, Say, I don’t want text at all. I can remove it. So, what you do, you can change the layout. Just click on that on the toolbar. Insert here (12:20) Then this is extra part. So first of all, I’ll select valuation amount in local currency from the hidden fields and Push towards the other side. And text, I don’t want this, select it from the Line 1 and push towards the other side. Then click Copy.

Now see. It is showing INR. This is, USD. Here, this is 66. This is 67. So similarly, I want to see in GBP. Same process. So, like this, you can post accounting entries in foreign currency and you can see in both currencies. One is local currency and other currencies. You take all currencies if you want to see all currencies. Put together it will show you. 

So, like this, we can, number 1, update the foreign currency in the tables. Whatever the rate that you give, the prevailing rate, it will change. So sometimes what we do, enter the exchange rate. In this, the rate will be connected to the on-site. Certain websites are there, and we’ll be connecting to that site. So that what happens whatever the rate that is going to be prevailing that will be displayed here, the system picks up that rate. So that facility also we have. That is dynamic rates. You’ll get it, exactly dynamic rates. That depends upon the requirement. Whatever the rate that you want, that will do that.

 

So next is blocking or unblocking of a GL. Say, for example, Equity share Capital account is there. I don’t want anybody to post even by mistake to that account. So, for that purpose, what I will do, I’ll be blocking that GL account. So, Equity Share Capital account. Say FS00. You create share capital. Go to GL account. Block. 

Here blocking block in the chart of accounts, blocking company code. So, this this means I can block a GL account at company code level or I can block a GL account at chart of accounts level. If I have more than one company code and if I want to block a particular GL account in all company codes, I’ll be blocking at a higher level at chart of accounts level. That is, here if you block, then no company code can use that particular GL account. Rather, if you want only this company code. And you can block here, Block it for posting, Block it for creation, Block it for planning. So, for all those things, we can block it. So, let me check how this is going to work.

If we try to post accounting entry to this account. They’ll be blocked for posting. Say FS00 is in, easy access only. I’ll go to easy access and FS00 and I’ll change it. But transaction codes cannot be accessed by anybody. Nobody can access the transaction code unless authorization is given specifically. So, for that, we give authorization metrics to the Basis consultant. If you remove the block, it will be opened for posting. So, like this, we can block a potential GL account. So, this is definitely used by every company. Almost for every company, what do we do? We’ll be blocking certain particular GL accounts, especially if you take care of Equity share Capitals. And see, all these accounts are used only periodically. It means once in a blue moon, we use it. So that’s why at the time of using, only that account is opened. And again, in case anything is to be posted, we’ll post it. And again, we’ll block it. Always in the blocker mode and only that concerned finance manager or maybe the process owner, we’ll train him and only he’ll open it and he’ll be posting entries again. He’ll block it. So what happens? Now even by mistake, no one can post accounting entry to these GL accounts. So practically, it is used by every company. Right. So, this is called blocking. 

So, like that, we have seen posting of entries in general ledger, posting of entries with multiple items, document display change, display of accounts, parking, holding. Right. The reference documents, false data entry, posting of interest in foreign currency, updating of foreign exchange and blocking of a GL account, unblocking of a GL account, creation of Mastercard, posting of incoming entries. Posting of incoming entries, we’ll see in the AR. See, even here you can do it.

Say, for example, you are going to get the interest or any income account. So that the income account is created and the bank account should be debited. Debit card comes in. When a bank account is debited, that income account can be credited. There is only a receipt entry. But, practically, if you are receiving money from another person, if you are receiving it, then that will be seen in accounts receivable.

So, with this GL account, we are closing. And, okay. Last one is MIS. Let me show you that. MIS in GL account, we don’t have much. But the thing is profit and loss account and balance sheet, cash flow statement, all those things we’ll see. Once we post GL, ER, APS accounting, all those things. Now since we have what data that is posted is very less. In spite of that, let me go through.

Alright. Balance sheet and printable account, we’ll see here. But now no question of looking at that because unless you post all the entries, you cannot get that. Anyhow, account balances, line items, document master data. See, account balances, general, GL balances, general ledger account balances. All GL accounts. General ledger account balances, I would like to see. And, here, this is the transaction code. 

Don’t try to remember this. It is only the report number that is. GL account balances. Chart of accounts, DRCA and company code, DRLB

And if you give GL account, only those GL accounts are visible. If you don’t give any GL accounts, it picks up the balances of all the GL account. Posting periods from 1 to 1683. Okay. Execute. 

See, this is only just like a trial balance. It shows you the balances of all accounts. What are the debit balance? What are the credit balance? So these are the account balances, debit balance, and credit balance. Accumulated balance, the total.

So, with this, our general ledger accounting is complete. So, what your next topic is going to be accounts receivable.