Business scenario– A G/L account is needed for all FI postings. A G/L account links to various modules. E.g., a G/L account is in the master data of a vendor account( recon account) and gets updated when you post to a vendor. There is a G/L posting when you post an invoice receipt in MM or a payroll posting in HR.
A G/L account is a bucket to correct various costs. A New G/L account might be needed when the business decides there is a need to capture a new type of charge or if they want to further breakdown costs etc.
Create a G/L account using the menu path below.
Or through the tcode FS00
The create or edit G/L account screen opens up( depending on your setting)
From this tcode, you can create, change or display a tcode.
Enter the G/L account that you want to create along with the company code for which you are creating this G/L account.
There is also an option to create a G/L with a template. This can be used when you have, e.g. a, G/L account 5000012 called large trucks, if you need to create 5000013 small trucks, rather than entering all the information again, you can just copy from the 5000012 account and change the description of this account.
Click on the template icon
Enter the G/L account which you want to use as a template for this account.
Enter the company code which this G/L account belongs to.
and hit create
Enter the following information
1- Account Group– Do a drop down and pick the account group for this G/L account. E.g., is it revenue account, Fixed assets account, etc.
Also, select if this is a P&L account or a balance sheet account.
2- Short Text– Enter the Short text of this G/L- E.g., Salaries account
3- G/L Account Long Text– Enter additional info over here. If the text isn’t that long, then the short text can be copied to the long text. If you need additional info, add that here. E.g., salaries for employees can be your long text, and short text is just salaries.
4- Trading partner-This is used for intercompany transactions. You can leave it blank for regular testing.
5- Group account number- Used for consolidation purposes only. Leave it blank for now.
Fill in the info
Control Data tab
There are many fields in this screen; we won’t be going through them all, below are the important fields.
1- Account currency– Enter the currency in which this G/L account is managed.e.g., USD.
2- Reconciliation account– A reconciliation account is linked to a subledger, e.g., to an asset, vendor, customer, etc. When there is a posting to the subledger, it automatically updates the G/L account, i.e., the reconciliation account.
Choose what type of reconciliation account it is, e.g., customer, vendor, etc.
3- Open item managed, or line item managed- Line item managed gives you all the details of this G/L account. E.g., if you made 100 postings to a G/L account and the total is a million dollars, you can see all the details of what made up that million dollars.
If this checkbox was not checked, then you would not be able to see the details of this G/L account. You can only see that this G/L account has a total of a million dollars.
Open item managed– Open item managed accounts balance to 0. This is to check what is outstanding on this account. E.g., if you cut a check to a vendor, initially it hits your cash clearing account.
The money has still not come out of your bank account as the vendor has not deposited the check. This is why we first hit the clearing account.
When the vendor deposits this check, the clearing account becomes 0, and it hits your main cash account.
These type of accounts are managed as open item accounts.
Field status group- The field status group controls what fields for this G/L accounts are required, suppressed or optional. Double click on the field status group to see the details.
Post automatically only– If this box is checked, then you can’t make any manual postings to this account. All the postings should happen automatically. This box is checked for accounts that are entered in tcode FBKP.
After entering all the info, click on the save icon.
You will see a message that tells you the data is saved.
This account is now ready to be used for postings.
Note- This guide is from ECC. In S/4 HANA , there are some changes to the G/L master. That will be covered in a separate post.
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