General Ledger Accounting
The central task of the general ledger FI component is to use Balance Sheet accounts and P&L accounts to record all value-related business transactions in a software system that is fully integrated with the other operational areas of a company to ensure that the accounting data is always complete and accurate.
The general ledger serves as a current, centralized, and complete record of all business transactions that can be checked in real time.
Accounts Payable
The Accounts Payable application is an integral part of the purchasing system where accountants can record and administer accounting data, such as deliveries and invoices, for all suppliers.
Steps in the procurement process like receipt and invoice verification use supplier accounts. This way financial documents related to these process steps update Accounts Payable (and the General Ledger using reconciliation accounts) in real-time.
Accounts Receivable
The Accounts Receivable application records and administers accounting data for all customers and so is an important part of sales management where deliveries and invoices are managed according to customers.
Steps in the sales process like goods issued and billing use customer accounts. Financial documents related to these process steps update Accounts Receivable (and the General Ledger using reconciliation accounts) in real-time.
Asset Accounting
The Asset Accounting (FI-AA) component is used for managing and supervising fixed assets. In Financial Accounting, it serves as a subsidiary ledger to the General Ledger, providing detailed information on transactions involving fixed assets.
Transactions such as acquisition, retirement, and asset transfer are recorded in Asset Accounting using asset accounts. Financial documents related to these transactions are updated in the General Ledger in real-time using reconciliation accounts.