Introduction:
Book keeping is one of the basic requirements of business running organisation. This is for maintaining proper records of accounts and presenting true and fair picture of financial position of an organisation to the different users.
It is mostly required by the Stakeholders, Financers and Suppliers. The financial postition of an organisation can be reflected through so many ways but the keys reports are:
1. Balance Sheet Statement
2. Profit and Loss Accounts
3. Cash Flow Statement
In the era ERP usage, where the book keeping is digitalised, it is not feasible to prepare the financial statements manually. SAP also provides certain standard
reports which are similar as Balance sheet and Profit & Loss accounts.
As SAP is globally used, it is very difficult to incorporate the legal requirements of all the country and all the legal departments across the globe. So to overcome this SAP has provided certain standard reports and also provided an option of customising “Financial Statement Version”.
Financial Statement Version:
It is a hierarchical positioning of GL accounts in accordance with the legal requirement of the country in which the organisation is based. It is possible to create as many required FSV for a single chart of account, depending upon the requirement of the organisation. In each FSV GL can be group as per the reporting requirement.
FSV can be define for specific chart of account, group chart of account and can be without any assignment also.
We define accounts interval at the lowest level of hierarchy. Functional area interval can also be assign at the lowest level of the structure in place of accounts interval, either of the one is possible.
For purpose of this we need specifically define while creating financial statement version. This can be done by marking the “Func. area allowed” indicator.
Procedure to define Financial Statement Version:
Step 1) Follow the path:
IMG -> Financial Accounting -> General Ledger Accounting -> Business Transactions -> Closing -> Documenting -> Define Financial Statement Versions
TCode: OB58
Step 2) Click on New Entries:
Fill the following details:
1. Fin. Stmt. Version: In this give the FSV key, for example IFRS, if the report is as per the IFRS requirement.
2. Name: Description for which this FSV is being created.
3. Maint. Language: The language in which the FSV requires to Display text, Enter text and print document.
4. Item keys auto.: This check box is for defining whether the accounts in the financial statement need to beassign manually or automatically.
5. Chart of Accounts: The accounts from which COA needs to be pick is define here.
6. Group Account Number: This check box is used if the group account number needs to be assign instead of account numbers.
7. Fun. Area perm.: This check box is used if functional areas need to be enable for FSV.
Click on save button, it will ask for transport request #, in order to transfer the same to the other servers also, as shown in below screenshot
Once the FSV is saved, it can be edited and accounts can be assigned as per the requirement.
Step 3) Click on “Fin. Statement items” button to edit and assign the accounts
Once you will click on “Fin. Statement items” button, the following screen will appear:
SAP is having the following by default nodes:
- Fin. Statement Notes
- Not assigned
- P+L result
- Net result: loss
- Net result: profit
- Liab+Equity
- Assets
Following things can be done here:
1. If required we use the same nodes and create sub items under these available nodes, by placing the cursor on the node and clicking on “Create items” button.
Once this item is created a new sub node will get created.
2. The text of the nodes can be edited, by double clicking on the nodes, and following screen will appear.
3. Now we can assign the accounts or group accounts as the case may be, to the sub nodes.
While assigning the accounts, D and C check boxes need to mark. This is for Debit and Credit balance of the account assigned. Normally, we mark both the check boxes. Once the assignment is done click on save button and FSV so created is ready for use.
Additional information:
The above steps are just the general steps, in this we have not changed the position of any of the nodes and none of the additional nodes are brought into picture. Now let’s see some additional thing which can be done while FSV designing.
1. Creating new node in the FSV: Place the cursor on FSV key, “TEST” in our case and click on create item
In the below screen, we edited the text of already existing node and also added four new nodes.
2. Reassignment of existing nodes:
Place the cursor on the target node which needs to be reassigned, click on “Select+/-“ button or press (F9).
Now place the cursor on the destination node under which we need to reassign, and then click on “Reassign” button or press (Shift+F6). The following pop up screen will appear:
Select the round button of Subordinate and press “OK”. After assigning all the nodes to the respective location the screen will looks like as below:
After doing the reassignment, now the normal thing of creating the sub nodes and assigning the GL accounts starts. Once all the GL accounts are assigned to the respective nodes the FSV is completed and click on save button.
At this point of time, one question comes up in mind, What if somebody missed to assign any of the GL to the FSV?
For the purpose cross check, as whether all GL accounts got assigned or not, follow the following step.
Click on “Check” button or press (Ctrl+F5). Following screen will pop up:
This check can be done at two levels:
1. Chart of Accounts Level
2. Company code level
So, if the FSV is related to any specific company code, then mention the company for which check needs to be done, and click on “OK” button. This will list down all the accounts which are not assigned to any of the nodes in the FSV.
If the FSV is general and going to be use by all the company codes under same chart of accounts, then keep the company code blank and execute. It will list down all the accounts which are not assigned from that Chart of account. Click on save button and now FSV will be ready to be use.