SAP Central Finance & G/L Master Data Harmonization
In this blog we will focus on several fields in GL master data which are important to consider when you are harmonizing the chart of accounts in SAP central Finance.
Lot of time I get questions from business/consultants as how we should define field status, how should be manage open item indicator or tax indicator. This blog should serve as comprehensive guide and of course the scenarios change per project/per customer so use it as a guidance not full-fledged solution.
Lets first list down the fields which needs to be managed in GL master data
We will discuss each item now in detail.
- Balance Sheet Accounts map to Balance Sheet Account in CFIN
- P&L Account without Cost Element in source map to Nonoperating Expense or Income account in CFIN
- P&L Account with Cost Element in source map to Primary Costs or Revenues Account in CFIN
- Secondary Cost Element map to Secondary Costs Element (when Source system is a S4 system)
2. Account Currency – Below combinations should be managed
3. Tax Category – The Tax category determines whether the following apply to the G/L account
- Is it tax-relevant?
- Is it a tax account?
The recommendation is to set the tax category in target system more or less similar with the source system. If this is not possible or the landscape have multiple source systems with differences then, the settings in CFIN needs to be more permissive than the one in source system. See below table for more details
4. Sort Key – Any value coming from source system is the leading value. CFIN will update this field if its coming as blank from source or any intervention is done via BADI.
5. Posting without tax code allowed – Indicates that the mentioned account can still be posted to even if a tax code has not been entered. If tax code is not entered during posting to this account, the system checks the entry against the tax category. Below settings are allowed
- Create the Field Status Group in Central Finance exactly as in source system
- Setup all fields as optional in CFIN (relevant if CFIN is reporting system only)
- Harmonize and map the Field Status Group from source systems to the Fields Status Groups in Central Finance system
7. Post Automatically only – This indicator can be selected for accounts such as for withholding tax accounts, GR/IR clearing accounts, all sales tax accounts, discount accounts, consumption accounts, etc. During replication of documents this indicator has no impact. Its usage is important during document entry (which is done is source system) and not during document reposting, as the account determination was already executed
- Goods receipt and invoice receipt accounts
- Accounts for cash discounts
- Reconciliation accounts
- Tax-relevant accounts
- P&L accounts
- Company Codes that have only one ledger active
- Automatic Postings
- Supplement for Automatic Postings
share your relevant experience specially when you have mix of source systems.