Create G/L Accounts

Okay now we’re going to create the rest of the G/L accounts. See here, we have created the retained earnings account, so we need to create a G/L account for each and every item you can see here in this balance sheet. So let us do it now. Okay, we’ll go to the same step where I created the retained earnings. 

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Accounting, financial accounting, general HR, author records, G/L accounts, individual processing, centrally. All right, choose this.

 

 

Before that, I will explain later what the difference between the chart of accounts and company code are. For now, you just choose centrally, change the company code to Sun, then here, we’re going to create this one, building. Before that, go to the account groups and check the range. Come here. It’s a fixed asset, right? Building is supposed to be parked under fixed assets, so you choose 1000. The range is supposed to be starting with 1000000.

Enter this, let’s see what happens. It does not exist. Yes, it does not exist. You have to choose a G/L account, create. Now you choose, fixed assets, then you choose, balance sheet, and just copy and paste, or, I can just directly key-in building. I’m going to copy and paste, building, here. 

 

 

This one, just leave it. No need to enter anything. Come here, field status group, choose assets, this one, assets accounts.  

Ok, remember I told you that for now you don’t need to bother about the field status group, because I’ll explain this in the additional training section later on, so for now just accept this existing field status group. The reason we are choosing the field status group is because there is a place in IMG where we can actually configure. But this G/L account, when the user posts a transaction using this G/L account, what are the fields that are supposed to be seen by him, or what are the fields that are supposed to be hidden, shown and accepted for input? That’s what is controlled by this field status group, so I’m going to show it to you later, so for now, just accept this. What else? Save it. Let me just save this first. 

What happens if I choose a number series which does not correspond to this group?

Let us try it now. Okay, let me show it to you later, after we create it. Everything. Now, machinery. Machinery is supposed to be a different account, but still under account group fixed assets, so I just choose increment by one. This is this. Okay, create, fix assets, now here, machinery, copy, paste, copy, paste.

Go here, field status group, asset accounts, save it. Okay, now it’s done. Current assets, since it has got a different category here, the number range will be different as well. Let’s check what is the number range for the current assets. I’m looking at the wrong chart of accounts.

 

You’re supposed to be looking at Sun. Be careful about that. Our chart of accounts is Sun, right? Look at here, current assets, total 200000, copy that so any current assets that you create are supposed to be having this number series. Enter, create, choose current assets here. Make sure you choose, balance sheet, cash in hand, because this is a balance sheet account, right, so you need to specify that it’s a balance sheet account. Cash in bank, go here. Let me see whether there’s any special one for current assets. There is no special account for current assets. 

Yeah, I can choose, bank account. 

Okay, this is a field status group for bank accounts. Save it. Done. 

 

Now, cash in hand. Okay, still current assets, so I just increment this by one so that it has got a number series of two.

Current assets, balance sheet account, paste it here, paste it here and choose the same bank account. I don’t have anything for cash accounts, so I just choose this, which is the closest. Save. Save. Okay.

Now, materials. Let me just change this to materials, because in SAP, we don’t call stocks as stocks, we call them materials, so better follow the same naming convention. Materials. I need to create an account for materials. Let me just check what that number series is. Materials are current assets, right? Okay, it’s still series 2. Let me just change to 2.

Create current assets, balance sheet, materials. Put it here, copy, paste, come here, field status group, materials account, yes.

You can choose this field status group. Save it. Ignore this message. Done.  

 

What else? Trade debtors. Trade debtors are still current assets, just increments are two. Choose this. Create, create current assets, trade debtors.

 

Make sure you cannot classify this as a P&L account. It is supposed to be a balance sheet account. This is very important. Okay. There’s one important thing I need to tell you about trade debtors. For trade debtors, it’s considered as a reconciliation account. You know what a reconciliation account is if you know accounting. 

 

I have a list of reconciliation accounts to be chosen. I define this as a reconciliation account for customers. Okay. Go here. There’s a special field status group for reconciliation accounts. For all the reconciliation accounts, we just choose this. This is not a big deal, even if you choose the wrong one, it doesn’t really give a peaking back during the postings. If you choose the wrong one, the wrong fields will be hidden, the wrong fields will be available for input. It’s not a big deal. Okay, don’t worry too much about this. I’m going to show you how to control that. Save it.

 

Right now, we’re going to create this section here, capital. Let’s go fast here. For long term liability, what’s the range? Long term liability should be having number series three. You can just copy and paste. Long term liability, balance sheet account, copy and paste. Capital, comes here, I choose general. Save. Save.

Bank loans. Bank loan is here. Create long term liability, bank loans. Bank loans. Field status group of general. Save it.

Current liability is trade creditors. The last one we need to create. Let me just check what the number is for current liability. Current liability are these four series. 

 

 

Go here. Create. This account for 400, 000 has already been created in the company. Yes. Remember, we created this for return earnings, so we can’t use this account anymore. We have to increment all. Yep. Now we can do it. Yes, we can. Current liability. What is it wanted to create? Yeah, trade creditors. Paste it here. Paste it here. 

 

 

Remember, trade creditors is also an account for vendors. Choose that here. Just now, we chose customers. Choose this one. Come here, field status group, recon account. Done. Save it.

 

 

Oh yeah, you know why? This one. It cannot be a P&L account. This make sense, current liability. Alright, it’s done. We have created all the GL accounts required. 

 

 

Remember I was telling you what will happen if I choose the wrong series and still define it as a current liability, let’s do it now. Just simply enter, nine series. Current liability is supposed to have series of nine. 

Current liability, four series, right? But I’m going to use 999 and define it as a current liability, let’s see what happens. Current liability. See this message here, “Account Group CLIA only defined for account from 400000-499999 number range.” So it doesn’t accept this. So if we get error message like this, “Account Group CLIA, this stands for current liability. See this here, CLIA, this is a code that we have defined for current liability, and it’s saying that only defined for accounts from range to this range, so it doesn’t accept this number because it doesn’t fall in this range.

 

Okay, I just wanted to show you that. All right. Yeah, just cancel it. No. And we are done. Let us go to the next topic.

 

You may watch the full course on the following YouTube link

https://www.youtube.com/watch?v=5zrWf2ubQbo&list=PLN17Nn94liux88cwVwqbiRQQo1qK4sOdQ&index=6&pp=iAQB