Jill has just joined the Global Inc. accounting department. But – who is Jill? Let’s look at what Jill says about herself:
Let's have a look how Jill finds the solution to this issue.
Financial accounting must fulfill external requirements, which include legal restrictions such as the creation of balance sheets and profit and loss statements. The General Ledger Accounting (G/L) is the core within the SAP system (Financial area) and stores the information needed to create a balance sheet and a profit and loss (P&L) statement.
The system records all business transactions according to the document principle, which provides an unbroken audit trail from the financial statements to the individual documents.
The recordings are saved in the form of an accounting document.
For example, you get a vendor invoice. This invoice is posted as a financial document in Financial Accounting. A bank statement was sent from one of your house banks. The individual items of the bank statement are entered as a journal entry in Financial Accounting.
For good complete reporting, it is important to have the data stored as uniformly as possible in the system. In the SAP System, this central place of data provisioning is the so-called Universal Journal. With this single source of truth, companies can rely on the numbers and can always trace back to the source document.
The central table ACDOCA is updated by the entry of postings in G/L accounting. These postings can be made directly in the general ledger and thus supply ACDOCA directly with data. They can also be transferred indirectly to the general ledger via postings in other areas.
The documents entered in the system then flow into the balance sheet and P&L and form the figures displayed there. For traceability, it is very important that a direct analysis of the individual journal entries entered can be carried out from the aggregated figures. If auditors require verification of individual balance sheet items, the facts can be traced down to the document level.
For further information, see the following media:
- Balance Sheet
- Update of the Universal Journal
- Navigate to the posted document
Documents and Postings in SAP
During this course, different ways to retrieve a financial document are shown. Let's start with the first way: Navigate from Balance Sheet to FI document.