Implementation Guide for SAP Business One: GL Accounts Setup files/downloads... · · 2015-07-29SAP Business One 2004 Implementation Guide - G/L Accounts Setup October 2004 Version:

Implementation Guide for SAP Business One: GL Accounts Setup

SAP Deutschland AG & Co. KG Neurottstr. 16 D-69190 Walldorf

SAP Business One, Release 2004

Implementation Guide

October 2004

English

Version: 2004 / 1.0

SAP Business One 2004 Implementation Guide - G/L Accounts Setup

October 2004 Version: 2004 / 1.0 Page 2 of 14

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Table of Contents

1 G/L ACCOUNTS SETUP ........................................................................................................... 4

1.1 G/L Account Determination..................................................................................................... 4

1.2 Additional Primary Accounts ................................................................................................ 13



1 G/L Accounts Setup

1.1 G/L Account Determination The list below specifies the role of each GL account in SAP Business One. Please note that some of the accounts may be only relevant for specific localizations.

The company or external accountant must provide the final approval of these settings!

Access the transaction from the SAP Business One Main Menu as follows:

Main Menu Administration → Definitions → Financials → G/L Account Determination

Sales Tab Page / General:

Field Name Description Mandatoryfor Initial Setup

Domestic Accounts Receivable, Foreign Accounts Receivable

Select the Receivables account for domestic and foreign customers. The account should be located in the Assets drawer and defined as a control account. Every posting against a customer will be recorded with the Receivables account and will be displayed in the financial reports under assets. The Receivables account for domestic and foreign can be the same GL account. A foreign control account will be assigned to a business partner with a bill-to country different than the company country. Manual journal entries cannot be posted to a control account.

Yes

Accounts Receivable: Down Payment Receivables

Additional control account that is used only for Down Payment Requests. This account defaults to the Down Payment Receivables account in the business partner and can be overwritten there. It has to be defined as a control account. When a customer payment for an A/R down payment request is received, this account will be credited. When receiving the customer payment for the final A/R invoice, the down payment is assigned to this final payment. This reduces the amount of the final payment and the Down Payment Receivables account is debited.

For Down Payment Requests Only

Accounts Receivable: Open Debts

Allows you to set as default an additional control account to accommodate the doubtful debts feature. It defaults to the Open Debts account in the business partner. Separate documentation is available for the doubtful debts feature. The account has to be defined as a control account.

For Doubtful Debts Only




Bill of Exchange Accounts Receivable

This account is a control account in the country version France / Italy / Portugal / Spain and will be debited during the generation of the bill of exchange BoE (BoE status � Generated). The same account will be credited, when the BoE due date is reached (BoE status - Paid) for France / Italy / Portugal and during the presentation of BoEs to the bank (BoE status �Deposited) for Spain.

For Bill of Exchange Only

Bill of Exchange Presentation

This G/L account is available in the country versions Italy and Portugal and will be credited during the presentation of BoEs to the bank (BoE status �Deposited). The same account will be debited, when the BoE due date is reached (BoE status - Paid).


Bill of Exchange on Collection

This account is available as G/L account in the country version France and will be credited during the presentation of collected BoEs to the bank (BoE status �Deposited). The same account will be debited, when the BoE due date is reached (BoE status - Paid). This account must be a control account in the country version Spain and will be debited during the presentation of collected BoEs to the bank (BoE status �Deposited). The same account will be credited when the BoE due date is reached (BoE status - Paid).


Bill of Exchange on Discounting

This account is available as G/L account in the country version France / Portugal and will be credited during the presentation of discounted BoEs to the bank (BoE status �Deposited). The same account will be debited when the BoE due date is reached (BoE status - Paid). This account must be a control account in the country version Spain and will be debited during the presentation of discounted BoEs to the bank (BoE status �Deposited). The same account will be credited when the BoE due date is reached (BoE status - Paid).


Unpaid Bill of Exchange

This account is available as control account in the country version Italy / Spain and will be debited when the customer doesn�t pay the BoE (BoE status �Failed). This account is available as G/L account in the country version France and and will be credited when the customer doesn�t pay the BoE (BoE status � Failed).


Allow to Change Reconciliation Accounts

Check this box to allow having additional control accounts linked to new customers in addition to the default account defined in G/L account determination. While creating a new customer master record, the field Account Receivables under the Accounting tab will be enabled.

No

Checks Received Select the default Checks Clearing account to be used in incoming payments where the payment means is Check. This account will be debited in the incoming payment posting and will be credited when the check is deposited. In the incoming payment screen, the user can change the checks clearing account manually.

Yes




Cash on Hand Select the default Cash Clearing account to be used in incoming payment, where the payment means is Cash. This account will be debited in the incoming payment posting, and will be credited when the cash is deposited. In the incoming payment screen, the user can change the cash clearing account manually. The account must be defined as cash account. It is recommended to have separate cash clearing account for each currency the company accepts to enable automatic deposit.

Yes

Default Customer for A/R Invoice + Payment

Define a �One Time� customer code to enable the use of an AR invoice + Payment located under the Sales � A/R module. The system will force the user, while issuing the invoice, to create a payment as well. The A/R Invoice + Payment form will not open without indicating the required customer code in this field.

No

Down Payment Clearing Account

This account is only used in the Down Payment Invoice process. For received down payments, this account usually represents a liability account. The Down Payment Clearing account can be overwritten in the business partner. When creating an A/R down payment invoice, the Down Payment Clearing account is credited. When creating the final A/R invoice and the down payment invoice is assigned to this final invoice, the DPM Clearing account is debited, thus reducing the outstanding amount of the final invoice.

Only for Down Payment Invoices

Realized Exchange Diff. Loss/Gain

Select appropriate accounts for the system to use when there are monetary differences deriving from foreign currency exchange rates in sales documents and incoming payments. The account will be used automatically when applying an Incoming Payment to an A/R Invoice or an A/R Credit memo to an A/R Invoice in case there was an exchange rate difference.

Only when working with foreign currency

Cash Discount Select a default account to be used in cash discounts. This account will be used when applying an incoming payment to an invoice with a cash discount.

Only when working with cash discounts

Revenues Account Select the most frequently used revenue account as a default account for creation of new item master records. When selling the item, the linked revenue account will be credited. The user may change the linked account in the item level as well as in the sales document.

Yes

Sales Revenue - Foreign

Revenue account used when selling to foreign customers outside the EU.

Only for EU countries

Sales Revenue - EU Revenue account used when selling to customers in other EU countries.




Sales Tab Page / Tax:


Down Payment Tax Offsetting

This account is used only in the Down Payment Request process. For received down payments, this account is usually a liability account. This account is used to show the tax for the down payment at the time when the payment is received. Therefore, the Down Payment Tax Offsetting account is debited and the tax account is credited when posting the payment. When receiving the final payment, the down payment amount is assigned to reduce the payment. At this time, the tax entry is reversed (debit tax account, credit Down Payment Tax Offsetting account).

Only for Down Payment Requests

Purchasing Tab Page / General:


Domestic Accounts Payable, Foreign Accounts Payables

Select the Payables account for domestic and foreign vendors. The account should be located in the Liabilities drawer and defined as a control account. Every posting against a vendor will be recorded with the payables account and will be displayed in the financial reports under liabilities. The Payables account for domestic and foreign can be the same GL account. A foreign control account will be assigned to a business partner with a bill-to country different than the company country. Manual journal entries cannot be posted to a control account.

Yes

Accounts Payable: Down Payment Payables

Additional control account that is used only for Down Payment Requests. This account defaults to the business partner Down Payment Payables account. The account has to be defined as a control account. When paying the final invoice, the down payment is assigned to this final payment. This reduces the amount of the final payment by crediting the Down Payment Payables account.

Only for Down payment Requests

Accounts Payable: Assets Account

Separate control account that can be used in AP invoices that contain Asset items only. The account has to be defined as a control account. It defaults to the business partner.

No




If you do not want to use a separate control account for Fixed Assets, do not flag the items as Asset items. Alternatively, you can assign the regular Payables account in the Assets account field.

Bill of Exchange Accounts Payable

This account is a control account in the country versions France / Italy / Portugal / Spain and will be credited during the generation of the BoE (BoE status � Generated). The same account will be debited, when the BoE due date is reached (BoE status - Paid).

Only for Bill of Exchange

Assets Bill of Exchange Acc. Payable

This account is an additional control account for assets in the country version France / Portugal / Spain and will be credited during the generation of the BoE (BoE status � Generated). The same account will be debited, when the BoE due date is reached (BoE status - Paid).

Yes

Allow to Change Reconciliation Accounts

Check this box to allow having additional control accounts linked to new vendors in addition to the default account defined in G/L account determination. While creating a new vendor master record, the field Accounts Payable under the Accounting tab will be enabled.

No

Realized Exchange Diff. Loss/Gain

Select appropriate accounts for the system to use when there are monetary differences deriving from foreign currency exchange rates in purchasing documents and payments to vendors. The accounts will be used automatically when applying a payment to vendor to an A/P Invoice, or an A/P Credit memo to an A/P Invoice in case there was an exchange rate difference.

Only when working with foreign currency

Bank Transfer Select the default cash account to be used in a payment to vendor using the Bank Transfer payment means. The cash account can be overwritten in the payment to vendor screen.

No

Cash Discount Select a default account to be used in cash discounts. This account will be used when applying a payment to vendor to an AP Invoice with cash discount.

Only when working with cash discounts

Cash Discount Clearing

This account is used for cash discounts only if the net procedure is used. The cash discount amount is debited on this account at the time when posting the AP invoice. If paying with discount, this account is credited when posting the payment.

No

Expense Account Select the most frequently used expense account as a default account when creating new item master records. When purchasing an item, the linked expense account will be debited. Using the continuous stock system, the expense account will be used when purchasing non-inventory items only. The user can change the linked account in the item

Yes




master data as well as in the purchase document.

Foreign Expense Account

Expense account used when buying from foreign vendors outside the EU.


EU Expense Account Expense account used when buying from EU vendors. Only for EU countries

Down Payment Clearing Account

This account is only used in the Down Payment Invoice process. For paid down payments, this account is usually an Asset account. The Down Payment Clearing account can be overwritten in the business partner master data. When creating an A/P down payment invoice, the Down Payment Clearing account is debited. When creating the final A/P invoice and the down payment invoice is assigned to this final invoice, the Down Payment Clearing account is credited thus reducing the outstanding amount of the final invoice.

Only for Down Payment Invoices

Expense Variance Account

This account is used only if additional expenses are defined as affecting stock. It is used to balance expense differences in returns and credit memos compared to the base document.

Only for Stock-relevant Additional Expenses

Purchasing Tab Page / Tax:


Down Payment Tax Offsetting

This account is used only in the Down Payment Request process. For paid down payments, this account is usually an Asset account. This account is used to show the tax for the A/P down payment at the time when the payment is made. Therefore, the Down Payment Tax Offsetting account is credited and the tax account is debited when posting the payment. When making the final payment, the down payment amount is assigned to reduce the payment. At this time, the tax entry is reversed (credit tax account, debit Down Payment Tax Offsetting account).

Only for Down Payment Requests



General Tab Page:

Field Name Description Mandatory for Initial Setup

Credit Card Deposit Fee

Select the default account for posting fees charged for depositing Credit Card vouchers.

No

Rounding Account Select a default account to be used in journal postings for clearing of rounding differences. This may occur when you define rounding for certain currencies or for marketing documents. The rounding amount that appears in the rounding field in the document will be posted to the rounding account.

Yes in case rounding is defined

Reconciliation Difference

Select a default account to be used when performing automatic reconciliation. According to the max. amount defined in the reconciliation difference field, a balancing journal entry will be created automatically using this account for the difference.

No

Period-End Closing Account

Select a default account to be used as an offsetting account to the P&L accounts during period end closing process. Note: this is not the Retained Earnings account!

No

Inventory Tab Page:


Stock Account Select the default stock account that reflects the stock final value. This account is used in a stock transaction. In case of stock increase, the stock account is debited; for stock decrease, the stock account is credited. It is located in the Assets drawer.

Yes

Cost of Goods Sold Select the offsetting account to the stock account used in deliveries and A/R invoices, and to the returning account used in A/R Returns and A/R Credit Memos. This account is a P&L account.

Yes

Allocation Account This clearing account is used as an offsetting account to the stock account in Goods Receipt POs and A/P Credit Memos. The balance of this G/L account reflects the total amount of open Goods Receipt POs and Goods Returns. This account is a liability account.

Yes

Variance Account Select the account to be used in case there are differences between the standard price and the actual price in the purchasing document. These differences will be recorded in the Variance account. This account is a P&L account.

Yes when using Standard Price

Price Difference Account

Select the account to be used in purchasing transactions only. Price differences between the base

Yes when using




document and the target document will be recorded in this account when using moving average price. This account is a P&L account.

Moving Average Price

Inventory Offset - Decrease

Select the offsetting account to the stock account used in inventory goods issues and negative difference in stock postings after inventory counting. Note: The user can change the Inventory Offset Increase / Decrease accounts manually while creating their corresponding documents. This account is a P&L account.

No

Inventory Offset - Increase

Select the offsetting account to the stock account used in inventory goods receipts and positive differences in stock postings after inventory counting. This account is a P&L account.

No

Sales Returns Select the offsetting account to the Cost of Goods Sold account used in A/R Returns and A/R Credit Memos. This account is used to record stock-relevant returns only. In case your returns should go back to the stock account, select the stock account. This account usually is an Asset account.

Yes

Exchange Rate Differences Account

Select the account to be used in purchasing transaction only. While creating a target document based on a base document with foreign currency item prices, the difference in local currency will be posted to this account.

Yes when using foreign currency prices

Goods Clearing Account

Select an offsetting account to the Allocation account used when closing Goods Receipt POs or Goods Returns manually. In this case, no inventory entry is registered; however, a journal entry is created including this G/L account.

Yes

Decrease GL Account This account is used when performing a Material Revaluation transaction that results in a lower stock value after revaluation. The stock account is credited and this account is debited with the stock difference. It is representing an expense.

Yes

Increase GL Account This account is used when performing a Material Revaluation transaction that results in a higher stock value after revaluation. The stock account is debited and this account is credited with the stock difference. This is representing revenue.

Yes

WIP Material Account This account is used to capture the work in process value of production orders that are not completed. It is posted when defining a manual issue method in the item master data.

No

WIP Material Variance Account

This account is used to capture differences between the planned amounts and the actual amounts in the production process.

No

Purchase Account/ When working with the Purchase Account Posting Only for




Purchase Offset Account / Purchase Return Account

System, you should define the relevant default accounts. Separate documentation is available for this topic in the knowledge base of the SMB Portal.

Purchase Accounting

Expenses Clearing Account

This account is used only when additional expenses are affecting the stock value. It is used similarly to the allocation account between the Goods Receipt PO and the AP invoice but takes the additional expense amount only.

Only for Stock-relevant Additional Expenses

Expenses Offsetting Account

This account is used only when additional expenses effect the stock value and if Purchase Accounting is activated.

Only for Purchase Accounting

All inventory accounts will default from the G/L account determination when adding a new warehouse or item group.

Please check the available documentation in the online help as well as the document on Continuous Stock in www.service.sap.com/knowledgebase under Releases -> SAP Business One 2004 for a more detailed description on the usage of the inventory accounts regarding the different business cases and stock valuation methods.



1.2 Additional Primary Accounts Tax accounts:

The tax accounting for each country is very specific and therefore is not explained in detail in this guide. It is mandatory that you assign all necessary tax accounts under Administration → Definitions → Financials → Define Tax. For example:

Access the transaction from the SAP Business One Main Menu as follows:

Main Menu Administration → Definitions → Financials → Tax → Define Tax Jurisdictions

For each Jurisdiction, select the appropriate account: • AR Tax Account � will be credited when posting an AR Invoice • AP Tax Account � will be debited when posting an AP Invoice • Use Tax Account � will be credited when posting an AP invoice and the item is defined as use

tax Access the transaction from the SAP Business One Main Menu as follows:

Main Menu Administration → Definitions → Financials → Tax → Define Tax Groups

For every the different tax type, assign a G/L account: • For regular tax codes, assign an account in the Tax Account column. This account will be

used when posting an AP or AR invoice. It depends on the tax category (input or output) whether the account will be debited or credited.

• For acquisition tax, assign a G/L account in the Acquisition Tax column. • For tax codes with a non-deductible amount, assign a G/L account additional to the Tax

account in the Non-Deductible account column. This account will be used to post the non-deductible amount. If you do not assign a non-deductible tax account in the tax code definition, the non-deductible amount will be posted automatically on the expense account of the document line.

A G/L account also has to be assigned to all tax codes. These G/L accounts cannot be posted manually.

When selecting an inventory item in purchase documents, it is mandatory to define a non-deductible tax account. The reason for this requirement is that the system does not support an option to affect the item cost in these scenarios. This limitation is relevant for EU countries, Canada and Latin America.

Bank Accounts: Access the transaction from the SAP Business One Main Menu as follows:

Main Menu Administration → Definitions → Banking → Define Banks

For each house bank, you must assign a G/L account to be used in the payment system.



Use the payment wizard for creation of incoming and outgoing payments. In the event the payment method is bank transfer, the appropriate bank account will be debited or credit. It is mandatory to define the bank account in case the Payment System is implemented.

If you update the G/L account in the house bank definition after a payment method using this house bank exists, the new G/L account is not populated automatically to the payment method. You need to update the payment method and re-assign the bank account in order to reflect the G/L account change in the payment method.

Credit Card Clearing Accounts: Access the transaction from the SAP Business One Main Menu as follows:

Main Menu Administration → Definitions → Banking → Define Credit Cards

Select the credit card G/L account to be debited when posting an incoming payment and credited when positing a deposit. The account can be replaced at the incoming payment level.

Additional Expenses: Access the transaction from the SAP Business One Main Menu as follows:

Main Menu Administration → System Initialization → Document Settings → Define Expenses

Revenues Account - Select the revenue account to be used in case additional expenses are recorded in A/R Invoice and A/R Credit. Expenses Account � select the expenses account to be used in case additional expenses are recorded in A/P invoice and A/P credit. If you mark the additional expenses as stock relevant, these accounts are not used; the stock accounts are used instead. This is explained in the G/L account determination section.

Documents

Implementation Guide for SAP Business One: GL Accounts Setup files/downloads... · · 2015-07-29SAP Business One 2004 Implementation Guide - G/L Accounts Setup October 2004 Version: