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SAP S/4 HANA Financial Accounting

Currency Types

 

T-Code: SPRO

Path: IMG -> Financial Accounting -> Financial Accounting Global Settings -> Ledgers -> Ledger -> Define Settings for Ledgers and Currency Types

Section: Currency Types

SAP Version: SAP S/4 HANA 2020

Currency Types List

  • 00 = Document Currency

  • 01 = Document Currency, Group Valuation

  • 02 = Document Currency, Profit Center Valuation

  • 10 = Company Code Currency

  • 11 = Company Code Currency, Group Valuation

  • 12 = Company Code Currency, Profit Center Valuation

  • 20 = Controlling Area Currency

  • 30 = Group Currency

  • 31 = Group Currency, Group Valuation

  • 32 = Group Currency, Profit Center Valuation

  • 40 = Hard Currency

  • 50 = Index-Based Currency

  • 60 = Global Company Currency

  • 70 = Controlling Object Currency

Currency Type in the Controlling Area

The controlling area currency type determines which currency is allowed as controlling area currency and whether the CO area currency can differ from the currency of the assined company codes. CO area currency is either set by the user or derived from other organizational units.

The Assignment Control is a very important setting when the subject is controlling area currency type.

There are 2 options:

  • 1 = Controlling Area Same As Company Code

  • 2 = Cross-Company-Code Cost Accounting

  • 1 Controlling Area Same As Company Code

​Relationship (1:1): The financial accounting and cost accounting views of the organization are identical.

Currency Type: The system will automatically assign currency type 10 (Company Code).

  • 2 Cross-Company-Code Cost Accounting

Relationship (1:n): Cost accounting is carried out in multiple company codes in the same controlling area.

The Company Codes must use:

  • The same number of posting periods (you can check it in the fiscal year variant)

  • The same Chart of Account

Hint: A 1:n relationship is appropriate, for example, if the organization has independent subsidiaries using a global cost accounting system, since it is possible to perform internal allocations between company codes.

Currency Types

Account Master Data

 

T-Code: FS00 | G/L Account Centrally

Control Data | Account Control (Company Code)

Balances in Local Currency Only

Indicates that balances are updated only in local currency when users post items to this account.

You set this if you do not want the system yp update transaction figures separately by currency.

Recommended for some Balance Sheet Accounts:

  • Not managed as open items and not kept in foreign currencies.

  • Managed as open items and and have the same types of items posted in different currencies, but always allow clearing to be made if the local currency amounts correspond.

Example: You set up a clearing account for GR/IR and post these itema to it.

Goods Receipt (Posted always in Local Currency)

  • EUR 890

Invoice Receipt (Posted Invoice Currency)

  • USD 1000

  • EUR 890

Both items can be cleared if the clearing account balances are recorded in Local Currency Only.

Unless you set the indicator for this account, the system will translate the USD to EUR during the clearing procedure to determine the account in EUR required to clear 1000 USD. If the translation rate is 0.89, the system displays 900 EUR for the invoice receipt and 890 EUR for the goods receipt when the open items are processed.

This means that to clear both od these items, you will also have to enter a difference posting for 10 EUR, and the system will automatically make an additional exchange rate difference posting for this amount.

Posting without tax allowed

Indicates that acoount can be posted without tax code.

It is possible to post both taxable and non-taxable items to that account. But If you post with tax code the system checks the entry against the Tax Category.

Tax Category

You only use Tax Category if the account is tax-relevant, If not, leave the field in blank.

Example of tax categories:

  • "*" All Tax Types Permitted

  • "+" Only Output Tax Permitted

  • "-" Only Input Tax Permitted

  • ">" Output Tax Account

  • "<Input Tax Account

Control Data | Account Management (Company Code)

Open Item Management

Indicator activated: The items posted are marked as open or cleared.

Indicator Inactivated: The items posted has no offsetting option, with open and clared marks.

Accounts managed as open items:

  • Clearing accounts

    • Blank Clearing Account

    • Payroll Clearing Account

    • Cash Discount Clearing Account

    • GR/IR Clearing Account

 

Accounts that are NOT managed as open items:

  • Bank Accounts

  • Tax Accounts

  • Raw Material Accounts

  • Reconciliation Accounts (There are managed implicitly using the subledger open item function)

  • Profit and Loss Accounts

  • Materials Management (MM) Accounts (Posted with a posting key that has account type 'M')

Create/Bank/Interest | Control of Document Creation (Company Code)

Post Automatically Only

Indicates that this account can only be posted to by the system using account determination tables.

Accounts
Documen Split

Document Split

 

Document Splitting is a function delivered initially within the New G/L, similar to FI-SL splitting available from release 4.7 onwards. It is an essential tool for drawing up complete financial statements for the selected dimensions (e.g. Segment, Profit Center, Business Area, Fund, Grant or Customer field) at any time.

Document splitting splits up line items during the posting for selected dimensions such as receivable lines by "Profit Center". Also, to affect a zero balance setting in the document for selected dimensions such as "Segment", document splitting can be used. The zero balance setting may generate additional clearing lines in the general ledger view.

Seq
Transaction
Name
Module
Reference
SAP Path
Comments
001
GSP_CD
Maintain constans
FI-GL
002
GSP_KD
Maintain account determination
FI-GL
003
GSP_KD1
Maintain acct deter: 0 balance
FI-GL
004
GSP_KD2
Maintain acct deter: Additional rows
FI-GL
005
GSP_LD
Define item type
FI-GL
business transaction - do not change
006
GSP_LZ1
SAP internal item cat. Assigment
FI-GL
assignment do de cima
007
GSP_LZ2
Allocation: acct number - item type
FI-GL
Clsssify G/L Accounts for Document Splitting
008
GSP_MD
Define Splitting Method
FI-GL
009
GSP_PD
Define business process
FI-GL
do not change
010
GSP_RD
Define Split Rule
FI-GL
011
GSP_VD
Define business process variant
FI-GL
012
GSP_VZ1
Transaction->process var. assignment
FI-GL
Assigment: Transaction Code - Accounting Transaction Variant
013
GSP_VZ2
MM movem. Type->process var. assgmt
FI-GL
Assigment: MM Movement Type - Accounting Transaction Variant
014
GSP_VZ3
FI doc type->process var. assignment
FI-GL
Classify FI Document Type for Document Splitting

Views

  • Entry View | Based on table BSEG as used in Classic G/L

  • General Ledger View | Based on the New G/L tables for ECC (ACDOCA for S/4 HANA)

You can choose between displaying the document either in its original form in the entry view or with the generated clearing lines from the perspective of a ledger in the general ledger view.

Issues

  • Balancing Field is not Filled |Error messages for example "the balancing field is not filled" may arise while you are working with relevant business processes. These issues are usually based on missing or incorrect document split customizing

  • New G/L Migration | Subsequent activation of document split functionality within a productive environment (with existing transactional data) is critical. It has to be handled with a separate migration project

  • Subsequent Changes | Processes in a customer system are dynamic and changes in document split customizing may arise. If subsequent changes are necessary, please refer to the long text of the warnings and also to OSS Note 891144

1. Document Split Functionality

With the functionality 'document splitting' a complete financial statement for selected dimensions can be provided at any time. Document splitting splits up line items for selected dimensions such as "Segment", "Profit Center", etc.

  • Document Splitting Method | A splitting method contains the splitting rules governing how the individual item categories are dealt with

  • Splitting Rule | Depending on the business transactions the rule governs how the individual item categories will be processed by the system

  • Business Transaction | SAP delivers 10 business transactions. A business transaction describes the structure of a business process for each document type. For each business transaction, you can determine which item categories (can) appear in the transaction. Business transactions are only used in document splitting

  • Item category | The item category characterizes the items of an accounting document. You need to classify the individual document items so that the system knows how to handle them. Therefore, an item category has to be assigned to all G/L accounts (T-Code: GSP_LZ2)

  • Processing category | The processing category controls how the amounts are split.

    • 0 | Transfer a fixed value (No Splitting)

    • 1 | Splitting by base item categories specified

    • 2 | Splitting based on current account balance

Warning

  • When using document splitting SAP recommends to avoid posting mixed business processes

  • A new document type for each business process needs to be defined in order to separate them. Generally it has to be ensured that each business process is posted with an appropriate document type (Example: Within SAP standard delivered customizing for business transaction "0300 Vendor Invoices" it is not possible to post customer or bank account lines)

2. New G/L Scenarios

In order to define the relevant fields to be updated within open items and totals, scenarios have to be assigned to the ledgers used. SAP standard delivers 6 scenarios (Also custom fields can be assigned). To split the posted items of a particular ledger by the selected criteria (Segment, Profit Center, Custom Field [ZZxxx], etc.), the relevant New G/L scenario has to be assigned to the ledger.

2.1. Define Document Splitting Method

The document splitting method contains the rules governing how the individual item categories are dealt with. In case changes need to be applied to standard customizing, SAP recommends copying the standard method 0000000012 and applying the changes.

2.1.1. Define Document Splitting Method​

  • T-Code | SM30 (V_T8G01)

  • Path | IMG -> Financial Accounting (New) -> General Ledger Accounting (New) -> Business Transactions -> Document Splitting -> Extended Document Splitting -> Define Document Splitting Method

    • Step 1 | Create an own defined method (e.g. Z000000012)

    • Step 2 | Select all rules included in the standard method and copy it to the Z000000012

    • Step 3 | Apply the changes needed

    • Step 4 | Activate the new to be used document splitting method

2.2. Activate Document Splitting

  • T-Code | SM34 (VC_FAGL_SPLIT)

  • Path | IMG -> Financial Accounting (New) -> General Ledger Accounting (New) -> Business Transactions >- Document Splitting -> Activate Document Splitting​

    • Step 1 | Document Splitting Assignment - Document splitting method has to be assigned (e.g. Z000000012)

    • Step 2 | Activating Inheritance of Account Assignments

Inheritance of Account Assignments

The indicator "Inheritance of Account Assignments" transfers the account assignments which are defined as split criteria. The values of the split criteria are always taken into consideration together as a combination of the account assignments. The field values are inherited only in case the account assignment combination is unique within the complete document. That means the account assignments are being inherited if the values of the split criteria in the complete document are the same. Please consider that only account assignments relevant for the balance sheet (G/L split criteria) are taken over since it is rather a fallback mechanism for the unassigned processes

Hint: There is also a possibility to deactivate inheritance for some specific business transactions.

Deactivating Inheritance of Account Assignments

  • T-Code | GSP_RD

  • Path | IMG -> Financial Accounting (New) -> General Ledger Accounting (New) -> Business Transactions -> Document Splitting -> Extended Document Splitting -> Define Document Splitting Rules

    • Step 1 | In the "Header Data", double click in the "Method + Business Transaction + Variant" desired

    • Step 2 | Flag the indicator "No Inheritance of A/c Assignments"

 

Hint: This indicator 'No Inheritance of A/c Assignments' can be set/removed in the definition of the business transaction (Only available in ERP2005)

Activation Standard A/C Assignment on the Splitting Method Level

The constant defines default account assignments for all line items for which it is not possible to derive any account assignments via the splitting rule or the inheritance. To activate this function select indicator "Standard A/C Assgnmt" and assign the constant.

 

Constant Definition

  • T-Code | SM34 (FAGL_CONSTANTS_GLOBAL)

  • Path | IMG -> Financial Accounting (New) -> General Ledger Accounting (New) -> Business Transactions >- Document Splitting -> Edit Constant for Nonassigned Processes

    • Step 1 | Create the Constant (eg. Zxxx)

    • Step 2 | Assign Profit Center

Deactivate Constant Default at Business Transaction Level

  • T-Code | GSP_RD

  • Path | IMG -> Financial Accounting (New) -> General Ledger Accounting (New) -> Business Transactions -> Document Splitting -> Extended Document Splitting -> Define Document Splitting Rules

    • Step 1 | In the "Header Data", double click in the "Method + Business Transaction + Variant" desired

    • Step 2 | Flag the indicator "No Default of A/c Assignments"

There is also a possibility to deactivate the default account assignment (constant) set on method level for some specific business transactions.

Deactivate Document Splitting at Company Code Level

Document split can be deactivated at company code level. In case one or more company codes in your system should not use document splitting functionality, then choose the "inactive" indicator at company code level.

Define Document Splitting

  • T-Code | SM34 (VC_FAGL_SPLIT)

  • Path | IMG -> Financial Accounting (New) -> General Ledger Accounting (New) -> Business Transactions >- Document Splitting -> Activate Document Splitting​

    • Step 1 | In the Dialog Structure, click in "Deactivation per Company Code"

    • Step 2 | Flag the indicator "Inactive" in the desired Company Code 

Warning: If you perform any cross company code postings please make sure that all company codes involved use document splitting

 

Hint: In addition the company codes which are used in cross company postings have to be assigned in Transaction "OBY6" to companies in a 1:1 relation

2.3. Document splitting characteristics

Document splitting is a tool for drawing up complete financial statements for selected dimensions. Additional zero balance items are automatically created in case the balance of account assignment objects is not zero.

 

Document splitting characteristics can be defined for General Ledger and additional characteristics for controlling and assets.

  • Characteristics for General Ledger Accounting

  • Characteristics for Controlling

  • Characteristics for Cash Discounts Capitalized to Assets

2.3.1. Document splitting Characteristics for General Ledger

In this IMG-step the account assignments taken into consideration in document splitting are defined.
It can be defined if a zero balance setting for the characteristic and a partner field has to be used. If the zero balance flag has been activated, the system makes sure that the document balances to zero on account assignment level.
The account assignment can also be defined as mandatory. The system accepts postings if the account assignment has been filled in the general ledger view. Either it can be filled in the entry view by entering it or it is derived from the document splitting rules.
If a field is defined as a splitting characteristic, but the relevant scenario or custom field is not assigned to a ledger, then it will not be updated in certain new g/l tables. The account assignments specified have to be maintained at least in one of the ledgers. Otherwise the mandatory check is not processed.

2.3.2. Define Document Splitting Characteristics for Controlling

Document splitting characteristics for controlling are being transferred only into relevant line items. The CO account assignments are just needed for the cost elements. Therefore the accounts of the corresponding line items need to be defined as a cost element.

2.3.3. Characteristics for Cash Discounts Capitalized to Assets (Post-Capitalization of Cash Discount to Assets)

he activation of the "Post-Capitalization of Cash Discount to Assets" has the effect that the cash discount of an asset-relevant payment is not posted to the cash discount account, but directly to the asset.

2.3.4. Zero balance indicator and balance zero clearing account

The zero balance indicator setting, ensures that the document is balanced according to document split characteristics for the selected dimensions such as "Segment". In case the balance of account assignment objects is not zero after document splitting the system generates additional clearing items. The triggered line items in the document are posted to the zero balance  clearing account defined for each account key in customizing.

Define Zero-Balance Clearing Account

  • T-Code | GSP_KD1

  • Path | IMG -> Financial Accounting (New) -> General Ledger Accounting (New) -> Business Transactions >- Document Splitting -> Define Zero-Balance Clearing Account

Warning: Therefore, a clearing account has to be created for the additional clearing line items.

2.4. Account key assignment (define zero-balance clearing account)

As explained above in some business processes additional clearing line items have to be created automatically so a full financial statement per splitting criteria is available.
The automatic posting is made to a zero-balance clearing account defined in the account key. One or more zero-balance clearing accounts may be used.

To post to different clearing accounts, each clearing account has to be assigned to a separate account key and each account key to the relevant business transaction variants.

Define Zero-Balance Clearing Account

  • T-Code | GSP_KD1

  • Path | IMG -> Financial Accounting (New) -> General Ledger Accounting (New) -> Business Transactions >- Document Splitting -> Define Zero-Balance Clearing Account

2.5. Constant definition

In order to set default account assignments within the document splitting, one or more constants can be defined.

Edit Constants for Non-assigned Processes

  • T-Code | GSP_CD

  • Path | IMG -> Financial Accounting (New) -> General Ledger Accounting (New) -> Business Transactions >- Document Splitting -> Edit Constants for Non-assigned Processes

For defining the constant only the defined split criteria can be chosen. A default value can either be assigned to all or just to several split criteria. The default values are always set as a combination, meaning all or nothing.

 

Example:

Split criteria A and B is set as default

  • If fields A and B are both not filled during posting, the default values of the constant are set.

  • If field A is set with the default value of the constant and B is not filled, the constant fills the value of field B.

  • If field A is set but not with the default value of the constant, nothing is done by the constant.

  • If any other split criteria is filled which is not defined within the constant, the constant fills fields A and B.

  • If an assigned split criteria is set with default 'blank', the system considers 'blank' as a value.


Two different ways of using a constant exist:

  • General constant for all business processes

  • Specific constant assigned to explicit item categories

References: SAP (www.sap.com); SAP Support (support.sap.com); SAP Help (help.sap.com); SAP Blog (blogs.sap.com)

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