Essential Requirement for Initiating Financial Transaction Recording in SAP

Prerequisite To Start Recording Financial Transactions In Sap

Upon finishing this module, you will possess the capability to:

Gain a comprehension of the process involved in recording financial transactions within the Universal Journal.

Creating a financial transaction in SAP: A step-by-step guide

On the SAP Easy Access screen, select Accounting Financial Supply Chain Management Treasury and Risk Management Transaction Manager Money Market / Foreign Exchange / Derivatives / Securities / Debt Management Trading Create Financial Transaction. Input the necessary information and save your inputs.


1. Open the SAP Easy Access screen.

2. Choose the option for Accounting Financial Supply Chain Management.

3. Select Treasury and Risk Management from the available options.

4. Click on Transaction Manager.

5. Choose Money Market, Foreign Exchange, Derivatives, Securities or Debt Management Trading based on your requirements.

6. Select Create Financial Transaction to proceed with creating a new transaction.

7. Enter all required data in the provided fields.

8. Save your entries before exiting or moving to another task.

Prerequisite for Recording Financial Transactions in SAP

After gaining knowledge about the record to report process, Dave is curious about the procedure of recording financial transactions in SAP S/4HANA and how it fulfills diverse requirements for financial statement reporting.

The profit responsibility within the internal management structure is determined by the sales of products, spare parts, and consulting services for both A and B. However, when it comes to external segment reporting following IFRS rules, there is no requirement to differentiate between A and B. Instead, the focus should be on reporting based on product sales, spare parts sales, and consulting services.

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In order to grasp the process of recording a financial transaction, an illustration is provided that focuses on the posting of sales commission for Product A in a German company. Dave aims to comprehend how this transaction affects the legal entity and encompasses different accounting principles. Moreover, it is important for the sales commission to be accurately reflected in external segment reporting, internal management reporting, and cost of sales accounting reports.

In this situation, the sales commission is recorded based on the information found in the tables provided below.

Introduction to the Universal Journal in SAP

Financial accounting involves documenting business transactions and determining their value based on established accounting principles. In the SAP S/4HANA finance and risk platform, the general ledger, also referred to as the Universal Journal, serves as the central repository of accurate information.

The Universal Journal is responsible for recording all important financial transactions in both Financial Accounting (FI) and Controlling (CO). This journal serves as the central repository of accurate information for both financial and management accounting. As a result, it creates a seamlessly integrated accounting system where all transaction details are consolidated in one location, regardless of their origin. The Universal Journal encompasses all necessary fields and components required by various business processes.

Prerequisite for Initiating Financial Transaction Recording in SAP

To streamline the process of inputting data for multiple journal entries, you can utilize the Manage Journal Entry Template app in SAP. This allows you to create customized templates that cater to your specific requirements. By selecting the necessary fields and values, you can easily submit and post journal entries. Additionally, if desired, you have the option to make these templates accessible to other users within your organization by making them public.

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To begin recording financial transactions in SAP, start by inputting the necessary information for the document header and the initial line item. The data entered in these fields will be displayed in the layout of the line item, which can be accessed by selecting the (Details) icon at the beginning of each line. By clicking on this icon, you will be directed to a screen where you can enter posting data for that specific line item. Once all relevant data has been entered, you have the option to view it as a simulation for verification purposes or proceed with posting it directly.

Before you can begin recording financial transactions in SAP, there are certain requirements that need to be met. These prerequisites ensure that the process of recording and maintaining accurate financial data in the general ledger accounting system is efficient and effective.

How is a financial transaction recorded in the journal?

To start recording financial transactions in SAP, there are a few prerequisites that need to be considered. These include:

1. Identification of impacted accounts: An accountant must determine the specific accounts that will be affected by the transaction.

2. Debit or credit decision: The accountant needs to decide whether each account will be debited or credited based on the nature of the transaction.

3. Journal entry creation: Once the accounts and their respective debit/credit status have been determined, entries are made in the journal with proper documentation and date of occurrence.

4. Posting or transferring to ledger: After creating journal entries, they need to be posted or transferred to the appropriate ledger for further processing and analysis.

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By following these steps, businesses can ensure accurate recording of financial transactions within SAP, enabling effective management and reporting of financial data.

Processing basic financial transactions: What is the procedure?

How to process financial transactions? The most basic method of recording a transaction is a journal entry. It involves accountants manually entering debits, credits, and account numbers for every transaction. This approach is subject to error.

The process of recording a transaction involves 4 steps

The accounting cycle consists of several steps that are essential for recording and analyzing financial transactions. The first four steps in this cycle are as follows:

2. Record transactions to a journal: After analyzing the transactions, they need to be recorded in a chronological order in a book called a journal or general journal. Each transaction is entered separately with details such as date, accounts involved (debit and credit), amounts, and descriptions explaining the purpose of each entry.

3. Post journal information to a ledger: Once all the entries have been made in the journal, they need to be transferred or posted into individual accounts in another book known as a ledger or general ledger. The ledger contains separate pages for each account where debits and credits from various related entries are accumulated over time.