SAP FICO Accounts

In SAP FICO platform, there are two types of accounts are defined. They are,

• Retained Earnings Account
• G/L Account

Retained Earnings Account

This type of account in SAP enables the admin to carry forward the balance throughout the fiscal year and to the next fiscal year. You can assign a Retained Earning Account to each P&L account in the chart of accounts (COA). To automatically carry forward the balance to the next fiscal year, you can define P&L statements as per COA and assign them to the retained earning accounts.

How to define Retained Earnings Account?

There are two ways to define a Retained Earnings Account. You can either use the T-code OB53 or by T-code SPRO. Go to SAP Reference IMG → Financial Accounting → General Ledger Accounting → G/L Accounts → Preparations → Define Retained Earnings Account → Execute. Enter the Chart of Accounts to define the Retained Earning Account for COA and press Enter. Provide the P&L Account statement account type and account → Press Enter and save the configuration.

G/L Account

G/L Accounts, also termed as General Ledger (G/L) accounts are accounts in SAP FI that are mainly used for providing an overview of the external accounting and accounts and to record all the business transactions in a SAP system. This software system is fully integrated with all the other operational areas of a company and ensures that the accounting data is always complete and accurate.

How to Create a New G / L Account?

You can use the T-code FS00 to centrally define a G/L account. Refer the following screenshot.

Working with G/L Accounts

There are three main operations to carry out with G/L Accounts. They are,

• Deleting the G/L Accounts
• Modifying the G/L Accounts
• Blocking the G/L Accounts

Modifying the G/L Accounts

Steps:

• To modify a G/L account, click the Change option. Refer the following screenshot. The next step is to select the changed field.
• Click the Save button to effect the changes.

Deleting the G/L Accounts

Steps:

In SAP R/3, go to Accounting → Finance Accounting → General Ledger → Master Records → G/L accounts → Individual Processing → Centrally.

In the G/L Account, provide the account number of G/L account and the company code key. To delete a G/L account, click the Delete button as shown below.

The next step is to select deletion options for the G/L account −

• Deletion flag COA
• Deletion flags in the company code.
• Select the correct checkbox and click the Save configuration.

Blocking the G/L Accounts

Steps:

In SAP R/3, go to Accounting → Finance Accounting → General Ledger → Master Records → G/L accounts → Individual Processing → Centrally.

In G/L Account, provide the account number of G/L account and the company code key. Click the Block button as shown in the following screenshot.

Once you click the Block button, you will get different blocking options such as −

• Block in Chart of accounts.
  • Blocked for creation
  • Blocked for Posting
  • Blocked for Planning
  • Block in Company Code
    • Blocked in posting