Accounting Setup

The Functional Administrator must maintain the following accounting configuration.

Note: If the system is operating in standalone mode, all mandatory tables have to be maintained manually.

Table Description SAP Sync Auto-Attached Standalone

Exchange Rate Type

A key representing a type of exchange rate, which is used when translating or converting currency amounts.

If parallel currencies are enabled for the system in the Module Management table, additional manual configuration is required, and you must configure one exchange rate type entry per SAP local currency. Refer to Exchange Rates in Cross Company Code Configuration for information about how the application uses the different exchange rate configuration tables.

Note: An exchange rate type for month-end exchange rates must be configured to properly generate Disclosure Reports.

Yes

Yes

Mandatory

Document Type

The SAP Document Types that will be used to classify postings must be assigned to each company.

Yes

No

Optional

GL Account

The GL accounts to which the application will post.

Note: If the system is operating in hybrid mode and the account has open item management in SAP, additional manual configuration is required.

Yes

Yes

Optional

Accounting Determination

This table allows you to configure the accounting determination per accounting standard, lease type, and classification type:

  • Document types: Maps application document types to SAP document types, to determine which document types are used for each posting. Document types differentiate business transactions and control document filing. They are valid for all system clients.
    • There are six standard application document types available, but new ones can be added:
      • Payments: Used to post Payments in finance leases and Invoices for operating leases.
      • Non-invoices: Used to post payment against a clearing account instead of a vendor.
      • Accruals: Used to post Interest Accruals for finance leases or Rent Accruals for operating leases.
      • Liability Transfer: Used to post liability transfer document from Long Term Principal to Short Term Principal after the initial Asset Capitalization.
      • Asset: Used to post asset documents (inception, IDC, Prepaid, etc.).
      • Ledger transfer: Used to reclassify from auxiliaries to the proper ledger.
    • For information about document structures, see Appendix: Document Structures.
  • GL accounts

Warning: By default, the (external) Asset Class field is ignored as a filtering field. To use it, you must enable the option in Accounting Settings.

No

No

Mandatory

Non Lease Accounting Determination

Non-Lease Account Determination mappings used for GL postings for each company code, per accounting standard, lease type, and classification type.

Warning: By default, the (external) Asset Class field is ignored as a filtering field. To use it, you must enable the option in Accounting Settings.

No

No

Mandatory

Tax Jurisdiction

A jurisdiction is the taxation authority that imposes the tax. Each jurisdiction is identified by a tax jurisdiction code. This code provides the location for the transaction to be taxed.

The tax jurisdiction code is a key, which together with the tax code and other parameters, determines the tax amount and the way in which payment of the entire tax amount is divided between different tax authorities.

Yes

Yes

Mandatory

Tax

Yes

Yes

Optional

Payment Term

The payment arrangements required by the supplier.

Yes

No

Optional

Payment Method

Specifies how payments are to be made.

Yes

No

Optional

Payment Block

Used to block an open item for payment transactions.

Yes

No

Optional

Reversal Reason

Information as to why the document was reversed.

If the switch Enable Reversal Date Selection is enabled, you can configure the default date displayed in the field Default Today. This field is ignored if the switch is disabled.

Yes

No

Optional

Partner

The list of vendors to whom amounts are payable for goods delivered or services performed.

If a vendor in this table does not come in subsequent SAP sync, then the vendor is added to the table CT_PartnerStatus (per company) with a "deactivated" status. These vendors will not be included in the Partner list in new contracts and MLAs (where the company code is selected).

Yes

Yes

Mandatory

Partner Status

If a vendor is blocked in SAP and it already exists in the Partner table, the application adds the blocked vendor to the Partner Status table and sets it as "Deactivated". The application will not allow users to add deactivated partners to new MLAs (if the company code is set) and contracts.

If the vendor is unblocked on a subsequent SAP sync, the vendor is removed from this table.

In a standalone system, administrators can block partners per company code by adding them to this list. Note that for standalone systems, partners can be added or deleted from the table, but cannot be attached or detached.

Yes

Yes

Optional

Purchasing Organization

An organizational unit that procures materials and services, negotiates purchasing conditions, and is responsible for purchasing transactions.

Yes

No

Optional

Purchase Order

The list of purchase orders that are attached to the company code.

Yes

Yes

Optional

To view or configure Exchange Rate Types:

  1. Click Application Menu > Master Data Configuration.
  2. Navigate to System Configs > System.
  3. Click on the row for the required system.
  4. Navigate to System Configs > System > Company.
  5. Click on the row for the required company.
  6. Navigate to System Configs > System > Company > Accounting Setup > Exchange Rate Type.

    Note: If parallel currencies are disabled for the system in Module Management, and additional reporting group currencies are not configured on this page, only the fields Currency Type and ExchangeRateTypeId are used. No additional configuration is required.

  7. If parallel currencies are enabled for the system, click to edit each record. You must complete the configuration. Note that:
    • Target Currency should be set to the To Currency.
    • Source Currency should be set to the From Currency.
    • Translation Date Type needs to match the local currency configuration in SAP. Note that if this field is not set, the application uses the Posting Date.
      • 1 (Document Date) maps to DOCUMENT_DATE.
      • 2 (Posting Date) maps to POSTING_DATE.
      • 3 (Translation Date) maps to TRANSLATION_DATE.
    • Currency Definition should be set to the Crcy Type in SAP.
    • Only set the Reference Currency field if it is being used in SAP for these exchange rate types (to support currency triangulation). The application will fetch the exchange rate for the contract currency to the reference currency (configured in the Exchange Rate Type table) and the exchange rate for the company code currency to the reference currency, and calculate the conversion from contract to company currency (called the reference rate). The calculated reference rate is then stored in the Exchange Rate table.
    • You must have one entry per local currency.

      • Note: Currency Type 10 must define the translation between contract to local currencies. Other currency type codes (e.g., 30) can be used to define other currency translations. For Currency Type 10:

      • Target Currency must bet set to the company code currency.
      • Source Currency must be set to the contract currency.
      • Translation Date must be set to the Posting Date.

  8. Additional configuration is required to properly generate the Disclosure Reports:
    • An exchange rate type with the Month End Type Rate checkbox selected must be configured for month-end exchange rates.
    • Optionally, configure a group currency exchange rate type with the Reporting Only checkbox selected to set up an additional group reporting currency for the Disclosure Reports. The Target Currency defined in this rate type appears in the Currency drop-down filter in the Disclosure Reports, and can be used to generate the reports in the additional group currency.

    Note: Exchange rate types with one of these checkboxes selected are not used for postings, and are only used to convert amounts in the Disclosure Reports. Note that an exchange rate type can only have one of these checkboxes selected at a time.

  9. For standalone systems:
    • To add a new exchange rate type, click Menu > Add. Enter the required information and click Submit.
    • To detach an existing exchange rate type from the company, select the required row and click Menu > Detach.
    • To attach an existing exchange rate type to the company code, click the Available tab, select the required row, and click Menu > Attach.

To view or configure Document Types:

  1. Click Application Menu > Master Data Configuration.
  2. Navigate to System Configs > System.
  3. Click on the row for the required system.
  4. Navigate to System Configs > System > Company.
  5. Click on the row for the required company.
  6. Navigate to System Configs > System > Company > Accounting Setup > Document Type.
  7. To attach an existing document type to the company code, click the Available tab, select the required row, and click Menu > Attach.
  8. For standalone systems:
    • To add a new document type, click Menu > Add. Enter the required information and click Submit.
    • To detach an existing document type from the company, select the required row and click Menu > Detach.
    • To attach an existing document type to the company, click the Available tab, select the required row, and click Menu > Attach.

To view or configure the GL Accounts:

  1. Click Application Menu > Master Data Configuration.
  2. Navigate to System Configs > System.
  3. Click on the row for the required system.
  4. Navigate to System Configs > System > Company.
  5. Click on the row for the required company.
  6. Navigate to System Configs > System > Company > Accounting Setup > GL Account.
  7. If the system is operating in hybrid mode and the account has open item management in SAP, you must enter an uppercase "X" in the Open Item Management field. Note that only balance sheet accounts are supported. For more information on the SAP configuration, refer to the SAP Prerequisites Guide.
  8. If the checkbox "Profit Center (B/S Account)" is enabled, the profit center is saved to the application database and/or sent to SAP during postings for Balance Sheet GL accounts. Note the following:
    • This checkbox is ignored during migration jobs.
    • For all asset postings in connected systems, the profit center and cost center cannot be sent because the BAPIs do not support sending the cost objects during these postings.
  9. Note that any other changes to this table will be overridden the next time the system configuration is synced with SAP.
  10. For standalone systems:
    • To add a new GL account, click Menu > Add. Enter the required information and click Submit.
    • To detach an existing GL account from the company, select the required row and click Menu > Detach.
    • To attach an existing GL account to the company, click the Available tab, select the required row, and click Menu > Attach.

To view or configure the Accounting Determination:

  1. Click Application Menu > Master Data Configuration.
  2. Navigate to System Configs > System.
  3. Click on the row for the required system.
  4. Navigate to System Configs > System > Company.
  5. Click on the row for the required company.
  6. Navigate to System Configs > System > Company > Accounting Setup > Accounting Determination.
  7. The GL Accounts are:

    Account Name

    		Account TypeAdditional Explanation

    Interest Charge

    Income Statement/Charges

    To record lease interest charges

    Accrued Interest

    Balance Sheet/Accrual

    To record monthly accrued interest

    Evergreen Accrual

    Balance Sheet/Accrual

    To record accrual for evergreen

    ST ROU Liability

    Balance Sheet/Liability

    Short term portion of long term liability

    LT ROU Liability

    Balance Sheet/Liability

    Long term portion of liability.

    Note that this account does not need to be configured for short term, low value, or service contracts.

    Asset Clearing

    Balance Sheet/Asset

    Transitory account used for initial liability posting.

    Note that this account does not need to be configured for short term, low value, or service contracts.

    Evergreen

    Income Statement/Charges

    To record evergreen expense

    Gain/Loss Disposal

    Income Statement/Charges

    To record the gain/loss on asset disposal.

    Note that this account does not need to be configured for short term, low value, or service contracts.

    Incentive (Clearing)

    Balance Sheet/Asset

    Transitory account for incentive posting

    IDC (Clearing)

    Balance Sheet/Liability

    Transitory account for IDC posting

    Gain/Loss Revaluation

    Income Statement/Charges

    To record the gain/loss on liability adjustment.

    Note that this account does not need to be configured for short term, low value, or service leases.

    Accrued Interest Clearing

    Balance Sheet/Clearing

    Transitory account used to post and reclass by ledger (accrued interest)

    ROU Liability Clearing

    Balance Sheet/Clearing

    Transitory account used to post and reclass by ledger (liability)

    Reconciliation Payable

    Balance Sheet/Clearing

    To record payable if invoice not posted against a vendor

    Inception Prepaid

    Balance Sheet/Liability

    To record any prepaid at inception time

    Accrued Expense

    Balance Sheet/Accrual

    To record accrued expense under the current standard, and for service, low value, and short term contracts under the new standards.

    Monthly Rent Expense

    Income Statement/Charge

    To record the actual expense under the current standard, and for service, low value, and short term contracts under the new standards.

    Deferred Asset/Liability

    Balance Sheet/Liability

    To record any amount paid in excess of the average rent expense for the month.

    It is used for operating leases under the current standard, and for service, low value, and short term contracts under the new standards.

    OTR - provision account

    Balance Sheet/Liability

    To record Obligation to Refurbish amounts.

    Lease End - Lease Liability Clearing

    Balance Sheet/Liability

    Account used to clear any outstanding balances from the application when closing a contract. 

    The application internally posts the following liability adjustment documents:

    • DR/CR Lease Liability Clearing account or Accrued Interest Clearing account (depending on whether the amount is positive or negative).
    • DR/CR the account where the balance was found.

    Lease End - Accrued Interest Clearing

    Balance Sheet/Liability

    Intercompany payable/receivable

    Balance Sheet

    Used during intercompany transfers to eliminate transactions that occurr between the legal entities (company codes) within the same group during consolidation.

    Note that intercompany transfers are disabled by default.

  8. To add a new account determination, click Menu > Add. Enter the required information and click Submit.
  9. To detach an existing account determination from the company, select the required row and click Menu > Detach.
  10. To attach an existing account determination to the company, click the Available tab, select the required row, and click Menu > Attach.

To view or configure the Non Lease Accounting Determination:

  1. Click Application Menu > Master Data Configuration.
  2. Navigate to System Configs > System.
  3. Click on the row for the required system.
  4. Navigate to System Configs > System > Company.
  5. Click on the row for the required company.
  6. Navigate to System Configs > System > Company > Accounting Setup > Non Lease Accounting Determination.
  7. To add a new non lease accounting determination, click Menu > Add. Enter the required information and click Submit. The GL accounts are:

    Account Name

    Account Type

    		Additional Explanation

    Non Lease Accrual Clearing

    Balance Sheet/Clearing

    Transitory account for non-lease accruals

    Reconciliation Payable

    Balance Sheet/Clearing

    To record charge if invoice not posted against a vendor

    Non Lease Accrual Default

    Balance Sheet/Accrual

    To record the cumulative non-lease accrual amount if individual accrual accounts are not configured (in the following fields).

    Default Non Lease Expense accounts (for categories 01-08 defined in the Non-Lease Amount Category table)

    Income Statement/Charges

    To record all non-lease charges (up to 8 GL)

    CPI Index

    Income Statement/Charges

    To record CPI/indexation amounts for ASC 842.

    Default Non Lease accrual accounts (for categories 01-08 defined in the Non-Lease Amount Category table)

    Balance Sheet/Accrual

    To record the individual non-lease accrual amount for each category.

    Note that if there are no individual GL accounts configured, the "Non Lease Accrual Default" account is used, with the cumulative amount.

    CPI Index Non Lease Accrual

    Balance Sheet/Accrual

    To record the individual non-lease accrual amount for CPI.

    Note that if there are no individual GL accounts configured, the "Non Lease Accrual Default" account is used, with the cumulative amount.

  8. To detach an existing non lease accounting determination from the company, select the required row and click Menu > Detach.
  9. To attach an existing non lease accounting determination to the company, click the Available tab, select the required row, and click Menu > Attach.

To view or configure Tax Jurisdiction:

  1. Click Application Menu > Master Data Configuration.
  2. Navigate to System Configs > System.
  3. Click on the row for the required system.
  4. Navigate to System Configs > System > Company.
  5. Click on the row for the required company.
  6. Navigate to System Configs > System > Company > Accounting Setup > Tax Jurisdiction.
  7. Note that any changes to this table will be overridden the next time the system configuration is synced with SAP.
  8. For standalone systems:
    • To add a new tax jurisdiction, click Menu > Add. Enter the required information and click Submit.
    • To detach an existing tax jurisdiction from the company, select the required row and click Menu > Detach.
    • To attach an existing tax jurisdiction to the company, click the Available tab, select the required row, and click Menu > Attach.
  9. To configure the tax codes, select the required tax jurisdiction and navigate to System Configs > System > Company > Accounting Setup > Tax Jurisdiction > Tax.
    • Repeat any required action that was previously listed.

To view or configure Payment Term:

  1. Click Application Menu > Master Data Configuration.
  2. Navigate to System Configs > System.
  3. Click on the row for the required system.
  4. Navigate to System Configs > System > Company.
  5. Click on the row for the required company.
  6. Navigate to System Configs > System > Company > Accounting Setup > Payment Term.
  7. To attach an existing payment term to the company code, click the Available tab, select the required row, and click Menu > Attach.
  8. For standalone systems:
    • To add a new payment term, click Menu > Add. Enter the required information and click Submit.
    • To detach an existing payment term from the company, select the required row and click Menu > Detach.
    • To attach an existing payment term to the company, click the Available tab, select the required row, and click Menu > Attach.

To view or configure Payment Method:

  1. Click Application Menu > Master Data Configuration.
  2. Navigate to System Configs > System.
  3. Click on the row for the required system.
  4. Navigate to System Configs > System > Company.
  5. Click on the row for the required company.
  6. Navigate to System Configs > System > Company > Accounting Setup > Payment Method.
  7. To attach an existing payment method to the company code, click the Available tab, select the required row, and click Menu > Attach.
  8. For standalone systems:
    • To add a new payment method, click Menu > Add. Enter the required information and click Submit.
    • To detach an existing payment method from the company, select the required row and click Menu > Detach.
    • To attach an existing payment method to the company, click the Available tab, select the required row, and click Menu > Attach.

To view or configure Payment Block:

  1. Click Application Menu > Master Data Configuration.
  2. Navigate to System Configs > System.
  3. Click on the row for the required system.
  4. Navigate to System Configs > System > Company.
  5. Click on the row for the required company.
  6. Navigate to System Configs > System > Company > Accounting Setup > Payment Block.
  7. To attach an existing payment block to the company code, click the Available tab, select the required row, and click Menu > Attach.
  8. For standalone systems:
    • To add a new payment block, click Menu > Add. Enter the required information and click Submit.
    • To detach an existing payment block from the company, select the required row and click Menu > Detach.
    • To attach an existing payment block to the company, click the Available tab, select the required row, and click Menu > Attach.

To view or configure Reversal Reasons:

  1. Click Application Menu > Master Data Configuration.
  2. Navigate to System Configs > System.
  3. Click on the row for the required system.
  4. Navigate to System Configs > System > Company.
  5. Click on the row for the required company.
  6. Navigate to System Configs > System > Company > Accounting Setup > Reversal Reason.
  7. Note that if the switch Enable Reversal Date Selection is enabled, you can configure the default date displayed in the field Default Today. This field is ignored if the switch is disabled.
  8. To attach an existing reversal reason to the company code, click the Available tab, select the required row, and click Menu > Attach.
  9. For standalone systems:
    • To add a new reversal reason, click Menu > Add. Enter the required information and click Submit.
    • To detach an existing reversal reason from the company, select the required row and click Menu > Detach.
    • To attach an existing reversal reason to the company, click the Available tab, select the required row, and click Menu > Attach.

To view or configure Partners:

  1. Click Application Menu > Master Data Configuration.
  2. Navigate to System Configs > System.
  3. Click on the row for the required system.
  4. Navigate to System Configs > System > Company.
  5. Click on the row for the required company.
  6. Navigate to System Configs > System > Company > Accounting Setup > Partner.
  7. To attach an existing partner to the company code, click the Available tab, select the required row, and click Menu > Attach.
  8. For standalone systems:
    • To add a new partner, click Menu > Add. Enter the required information and click Submit.
    • To detach an existing partner from the company, select the required row and click Menu > Detach.
    • To attach an existing partner to the company, click the Available tab, select the required row, and click Menu > Attach.

To view or configure Partner Status (for deactivated partners):

  1. Click Application Menu > Master Data Configuration.
  2. Navigate to System Configs > System.
  3. Click on the row for the required system.
  4. Navigate to System Configs > System > Company.
  5. Click on the row for the required company.
  6. Navigate to System Configs > System > Company > Accounting Setup > Partner Status.
  7. For standalone systems:
    • To add a new blocked partner, click Menu > Add. Enter the required information and click Submit.
    • To delete an existing deactivated partner from the company, select the required row and click Menu > Delete.

    Note: For standalone systems, partners can be added or deleted from the table, but cannot be attached or detached.

To view or configure Purchasing Organization:

  1. Click Application Menu > Master Data Configuration.
  2. Navigate to System Configs > System.
  3. Click on the row for the required system.
  4. Navigate to System Configs > System > Company.
  5. Click on the row for the required company.
  6. Navigate to System Configs > System > Company > Accounting Setup > Purchasing Organization.
  7. To attach an existing purchasing organization to the company code, click the Available tab, select the required row, and click Menu > Attach.
  8. For standalone systems:
    • To add a new purchasing organization, click Menu > Add. Enter the required information and click Submit.
    • To detach an existing purchasing organization from the company, select the required row and click Menu > Detach.
    • To attach an existing purchasing organization to the company, click the Available tab, select the required row, and click Menu > Attach.
  9. To configure the tax codes, select the required tax jurisdiction and navigate to System Configs > System > Company > Accounting Setup > Purchasing Organization > Purchase Order.
    • Repeat any required action that was previously listed.

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