1. General Ledger SAP Best Practices

2. Purpose, Benefits, and Key Process Steps • Purpose • This scenario provides a comprehensive picture of external accounting and accounts. • Benefits • Recording all business transaction ensures complete and accurate accounting data. • Key Process Steps • Posting General Ledger Account Documents • Displaying the Document Journal • Displaying G/L Balances (List) • Carrying Out Recurring Entries • Account Maintenance: Automatic and Manual Clearing

3. Required SAP Applications and Company Roles • Required • Enhancement package 5 for SAP ERP 6.0 • Company Roles • General Ledger Accountant • Finance Manager

4. Detailed Process Description • General Ledger • The central task of G/L accounting is to provide a comprehensive picture of external accounting and accounts. Recording all business transactions (primary postings as well as settlements from internal accounting) in a software system that is fully integrated with all the other operational areas of a company ensures that the accounting data is always complete and accurate. • The SAP FI General Ledger has the following features: • Free choice of level: corporate group or company • Automatic and simultaneous posting of all sub-ledger items in the appropriate general ledger accounts (reconciliation accounts) • Simultaneous updating of general ledger and cost accounting areas • Real-time evaluation of and reporting on current accounting data, in the form of account displays, financial statements with different financial statement versions and additional analyses. • Essentially, the general ledger serves as a complete record of all business transactions. It is the centralized, up-to-date reference for the rendering of accounts. Actual individual transactions can be checked at any time in realtime processing by displaying the original documents, line items, and transaction figures at various levels such as: • Account information • Journals • Totals/transaction figures • Balance sheet/profit and loss evaluations

5. Process Flow Diagram General Ledger Event Posting (FI) Displaying Displaying and Change Reversal Clearing General Ledger Accountant Process Decision Process Decision Process Decision Displaying a Document Displaying and Changing Line Items Reversing a Document Displaying the Compact Document Journal Posting G/L Account Document Display Balances Displaying the Document Journal Reversing a Document – Individual Reversal Displaying G/L Balances (List) Account Maintenance: Automatic Clearing Account Maintenance: Manual Clearing Finance Manager Processing a Recurring Entry Document Reversing a Document – Mass Reversal List of Recurring Entry Original Documents Carrying Out Recurring Entries G/L = General Ledger

6. Diagram Connection Legend <Function> Hardcopy / Document External to SAP Financial Actuals Business Activity / Event Budget Planning Unit Process Manual Process Process Reference Existing Version / Data Sub-Process Reference Process Decision System Pass/Fail Decision