For financial accounting with only one accounting principle, FI documents are posted to multiple general ledgers. The G/L accounts used for posting have a defined (minimum) length. True False.
The length of the G/L account number is defined in the chart of accounts, such as CAUS or INT. True False.
The ledger 0L is the leading ledger in new General Ledger Accounting. Although account numbers are typically comprised of digits, letters are sometimes used as well. True False.
All accounts are reported on the balance sheet for the required accounting principle, typically the local principle, such as U.S. GAAP (for American company codes), UK GAAP (for British company codes), or HGB (German Commercial Code for German company codes). True False.
When using the accounts approach, all accounts are posted to non leading ledger only. A separate, leading ledger 0L is not needed. True False.
A company that decides to use the accounts approach will use additional G/L accounts to report the differences. However, only accounts that represent valuation differences must be created from scratch. The majority of accounts will remain unchanged and be used across multiple accounting principles. True False.
In many countries, the additional accounting principle is International Financial Reporting Standard (IFRS). True False.
In the years to come, adopting IFRS will be a challenge for Brazil, Canada, Malaysia, U.S., Japan, and other countries that have either started to adopt it or are planning to adopt it. True False.
Typical period-end processes (in FI) with valuation differences are as follows: Manual posting of provisions Valuation of postings in foreign currency Valuation of adjustment of doubtful receivables Valuation of fixed assets Valuation of floating assets.
The prefix numbers 1 and 9 are used to distinguish accounts with different values. Using numbers is the best way to distinguish accounts, but you may also use letters. True False.
A fixed asset with APC of €20,000. The planned useful life is four years (according to international accounting principles) and five years (according to local principles).
The SAP program to post the depreciation is RAPOST2000. The program posts two documents – one for each accounting principle. True False.
The international financial statement version typically contains shared accounts and local accounts.
True False.
Local financial statement version typically contains shared accounts and local accounts. True False.
The balance sheet section V (Unassigned Accounts) may not be balanced out to zero. True False.
Because the number of shared accounts is typically much larger than that of accounts with valuation differences, Mickey Mouse's "ears" should appear even smaller. They are enlarged here for the sake of the example. True False.
When configuring the accounts approach, it is not necessary to consider settings in Customizing and the application area of the SAP system. True False.
Which of the following parallel retained earnings accounts have to be assigned to the financial statement versions: The international retained earnings account in the international financial statement versions (in the same item as the retained earnings account for the shared accounts). The local retained earnings account in the local financial statement versions (also in the same item as the retained earnings account for the shared accounts). International Chart of Account.
To define accounts while setting up the accounts approach, there is no need to define additional profit and loss (P&L) statement account types (and additional retained earnings accounts) in Customizing True False.
While setting up the accounts approach, you do not need to create new accounts. True False.
If document splitting is activated for new General Ledger Accounting, most new account items categories also need to be maintained. You also have to decide which accounting principle must be posted to CO. Additionally, you have to create cost elements for the respective cost accounts. True False.
The international financial statement version needs to comprise all shared and international accounts. All the local accounts are found in an appendix of the balance sheet. True False.
The local financial statement version needs to comprise all shared and local accounts. All the international accounts are found in balance sheet. True False.
While setting up the accounts approach, you need to define financial statement versions. True False.
Provisions are a liability of uncertain timing and amounts. Provisions are relevant for parallel accounting because the amount of the provision can be different in different accounting principles. In addition, the period for which you have to make provisions can differ True False.
For example, provisions for future warranty claims have to be made locally only for sales during the last six months. However, to meet the international demands, sales from the last two years have to be considered. True False.
In some cases, you have to rely on experience or estimated data and values, such as in the example of provisions for future warranty claims. To obtain estimated values that are as correct as possible, you must have complete and continuous documentation of your provisions. Therefore, you must also create a provision history sheet. True False.
IAS 39 defines a provision as a "liability of uncertain timing or amount". True False.
IAS 37 requires that all the following conditions be fulfilled before an entity recognizes a provision: The entity currently has a liability as a result of a past event. An outflow of resources is likely to be needed to settle the liability. The amount of the obligation can be estimated reliably. The standard also details measurement methods for provisions, generally requiring that the entity recognizes a best estimate of the amounts needed to settle the obligation. Appropriate provisioning method.
In the SAP system, provisions or reserves are processed with manual postings by entering G/L account documents True False.
The provision, or reserve, process typically involves the following postings: Post provision expense Post a document if the circumstance for which the provision was made is fulfilled. For example, in case of provisions for warranty claims, if the customer claims the warranty for: A goods issue for spare parts or A vendor invoice if a third party adjusted the warranty claim Post gain from addition to provision (typically two documents): Posting record: Provisions (balance sheet account) to gain from addition to provisions Post gain from reduction of provisions (typically two documents): Posting record: Provisions (balance sheet account) to gain from reduction of provisions
Clear provision balance sheet account using transaction code.
To ensure that users can only choose from a range of correct transaction types, you have to configure a validation. True False.
To guarantee that a consolidation transaction type is maintained when entering the provisions balance sheet account, you can use either of the following methods: Method 1: In the field status group of the balance sheet account, the consolidation transaction type has to be a required entry.
Method 2: Maintain a validation (transaction code OB28) that sends an error message when the consolidation transaction type is missing in the provisions balance sheet account line. Method 3: Change the field status group.
Additional Steps for Setting Up the Accounts Approach: The following are the standard consolidation transaction types: Transaction type 500 (Open Balance Provisions) Transaction type 520 (Allocation) Transaction type 540 (Drawing/Availment) Transaction type 560 (Elimination/Reduction).
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