FINANCIAL STATEMENTS 1. What are financial statements versions? Pg 309 of 50_2.

FS versions are different versions of financial statements which are created to meet various criteria or uses eg. Internal audit version, external audit version, external user version. Hierarchical arrangement of G/L accounts. The accounts can be arranged in accordance
with the legal regulations used to generate your financial statements. Alternatively, you can arrange the accounts in accordance with your requirements. In the General Ledger Accounting component (FI-GL) you can set up the financial statements in various ways according to your own specific requirements. You can create them for different organizational units, for example, the corporate group, a company code or a business area. You can create them in different languages, for example, in the local language used at a subsidiary (company code) or in the language of the corporate group. You can create the balance sheet in any currency you like or according to a specific currency type. This may be necessary if you want to create a consolidated balance sheet for a group of company codes with different local currencies or if you record transactions in other additional currencies in addition to the company code currency. You can choose between different types of balance sheet, for example, an opening balance sheet or a closing balance sheet. You can vary the level of detail of your financial statements. For your accounting department, for example, you want to list the individual accounts with their respective balances. For senior management, you might want to summarize this information to create a single balance sheet for the whole group.

You make all other specifications using the selection criteria and parameters in the financial statement program. You can define several financial statement versions. This may be necessary if you want to generate the financial statements using different formats. You may want to have different balance sheet formats set up according to various criteria for commercial purposes, for tax purposes and for internal purposes. The standard system is delivered with predefined financial statement versions. You can copy these or modify them for your own versions. You also need a financial statement version for the following functions, programs, and reports: G/L Account information system Structured balance list Planning on G/L accounts

2. What are the main features of financial statement versions?

The financial statement version forms the basis for creating financial statements. Using the financial statement version, you specify: Which items are to be included in the financial statements and the sequence in which these items are listed in the statements The item texts and the language in which they should be printed The charts of accounts and the individual accounts that are relevant to the financial statements. Accounts can be assigned to financial statement items according to the account balance

The totals that are to be presented in the statements (you can display group totals or graduated totals).

3.

What can you determine when configuring the report format of financial statement versions?

You define a financial statement version as follows: A. First, you make the general specifications for your financial statement version. When defining a financial statement version, you need to make the following specifications. Name of the financial statement version Language - Specify the language in which the version is to be created and maintained (maintenance language). Automatic item key assignment - This indicator specifies whether the keys for the financial statement items are assigned automatically by the system or whether you can enter them manually. Chart of accounts For each financial statement version, you can specify whether you are defining the version for one particular chart of accounts, for several charts, or for a group chart of accounts. If you want to use a financial statement version for only one particular chart of accounts, you can specify the desired chart of accounts when defining the version. It is then not possible to specify the chart of accounts when you assign the accounts to the financial statement items (input facilities). If you want to define a financial statement version for different charts of accounts, you can choose between assigning the chart of accounts to each individual account or using the group account number. B. Then you specify the structure/ hierarchy of the version by defining the financial statement items. You must also assign accounts. If you are creating a new version, the system automatically creates a separate item for the following special items in the structure: o o o o o o Assets Liabilities Net result: Profit Net result: Loss P&L result Not assigned

4. Identify the steps involved when defining financial statement versions

The typical procedure for creating a financial statement version is as follows: Define the structure, that is, the hierarchy of items.

Specify the texts and totals to be displayed for each item. After defining the hierarchy, you enter the text for each item that you want to be printed in the financial statements, and specify the totals that should be displayed. Assign one or more account intervals to the lowest items in the hierarchy.

RECEIVABLES AND PAYABLES 5. Identify the legal requirements of customer closing activities
send Balance confirmations and evaulate response Valuate foreign currencies Value Adjustments

regrouping of receivables and payables 6. Identify the technical or organizational requirements of customer closing activities
the balance carry forward program is run, carrying forward the balances of the customer accounts to the next fiscal year. The posting periods of the old fiscal year are blocked the special periods for closing postings are opened. A technical reconciliation for documents, transaction figures and affiliated companies guarantees that the postingof documents is technically problem-free. Closing of special periods

7. Identify the main features of Balance confirmations The program for creating balance confirmations automatically creates balance confirmations (including reply slips) for a freely definable number of customers and vendors, as well as a reconciliation list and a results table. The balance confirmations and reply slips are sent to the customers or vendors and the lists forwarded to a control center.

The customers or vendors check the balance information they receive and send their reply to the control center. 8. Identify the steps in Customizing of balance confirmations Define form names for printing correspondence Define sender details for correspondence form Define reply addresses for balance confirmation Specify selection criteria for balance confirmation Prepare balance confirmation for customers/vendors 9. List the three procedures available for balance confirmations

10. What is a foreign currency valuation? Foreign currency open items and balance sheet accounts must be valuated on the basis of various business-related and legal criteria. Items are valuated in local currency A foreign currency valuation is necessary if vendor accounts contain open items in a foreign currency. The amounts of these open items were translated into the local currency at the time they were entered using the current exchange rate 11. Identify the accounts and items included in the included in the foreign currency valuation Foreign currency balance sheet accounts, that is, G/L accounts that you manage in a foreign currency (the balances of the G/L accounts in foreign currency are valuated) Open items (customers, vendors, G/L accounts) posted in foreign currency(the line items are valuated) 12. Identify the prerequisites for foreign currency valuation

13. What are the requirements of foreign currency valuation using the Ledger Approach?

14. 15. 16. 17. 18. 19.

Define value adjustments What options are available for creating value adjustments for receivables? What are the main features of Individual value adjustment for doubtful receivables? What is Flat-rate Individual value Adjustment of Overdue receivables? Identify the main features of Flat-rate Individual value Adjustment of Overdue receivables In point form , explain how you can achieve an automatic flat-rate rate Individual value Adjustment of Overdue receivables 20. What is Regrouping? 21. List the main features of regrouping 22. List the main functions of the report FAGL_CL_REGROUP with regards to regrouping and sorting of receivables and payables

ACCRUALS AND DEFERRALS 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. Differentiate between Accruals and Deferrals What is the Accrual Engine used for? List the two types of data stored by the Accrual Engine List the two main processes triggered from the application component of the accrual engine Identify the advantages of the Accrual Engine List the Customizing activities to be carried out to activate an application component of the Accrual Engine Identify the closing activities of the Accrual Engine List the main features of posting deferrals List the objects or features for which the Posting Control is defined for the Accrual Engine Identify the purpose of account determination task of the Accrual Engine What does the Accrual Engine support for parallel accounting? What do derivation rule for determining accounts consist of?

TECHNICAL, ORGANIZATIONAL, AND DOCUMENTARY STEPS 35. Identify the following with regards General Ledger Closing Operations; Legal activities Technical or organizational activities 36. Define balance audit trail 37. Identify the reasons for balance audit trail 38. Identify the existing functions in the SAP system (as of Release SAP ERP 2004) to create a segment balance sheet. 39. List the assumptions for document splitting 40. Identify the main features of Real - Time Integration from CO-FI 41. List the processes or transactions in which changes resulted due to the Real-time integration from CO-FI 42. List the processes or features you can configure using a Customizing variant for real-time integration CLOSING COCKPIT 43. List the advantages of the closing cockpit 44. What options does the Closing Cockpit offer to support the closing activities? 45. Identify the features of the organizational hierarchy in the closing procedure of the closing cockpit

46. List the task types in the closing cockpit 47. With regards to the List Display, what information is shown in the detailed view for a task?