Responsibility area: Ensure consistency of General Ledger master data
Table of contents
Scope
ERP
Frequency
References
FBL3N; FSS0; FSP0
Forms
Attachments
8. Add the link to attachments or external links
I analyze and create a General ledger account at company code level << I update/block a General ledger account at Chart of accounts/company code level >> Next OP
1. Objective and Scope
1.1 Objective of this Operation
The purpose of this procedure is to outline the process for modifying General Ledger (G/L) accounts and to provide clear, step-by-step instructions for performing these modifications within the ERP systems. This ensures that all changes are executed accurately, consistently, and in compliance with internal controls and accounting standards.
1.2 Scope
The scope of this procedure is worldwide.
2. Definitions
See Finance Glossary
3. Tasks description
3.1 I receive a request to update/block a General ledger account at Chart of accounts level/company code level
Requests must be submitted to the Data Management Finance Operations entry point through the Finance Master Data Workflow in PRS (PF2_050) using – transaction ZZF_MDWF_REQUEST or via SyRA.
3.2 I confirm that the request is made by an authorized requester
The required validations are based on the same principles outlined in the procedure I analyze and create a General Ledger account at a Company Code Level .
When new data is required, a formal request must be submitted to the organization responsible for data management. To ensure effective control, only authorized requesters are permitted. The authorized requesters are:
- Company Accounting Managers/Directors (CAM and CAD)
Workflow roles are typically assigned based on the individual’s function within the organization. If you are unsure who the appropriate requester is, please consult the Legal Entity Card , in the Finance - Group Accounting & Reporting section.
3.3 I analyze and validate the information provided in the request
G/L account modifications can be performed either manually or by using mass change tools. Both options are documented below.
The required information for any modification request is:
- G/L account number
- Company code
- Account description in English
Updates may include, but are not limited to, the following:
- Changes in the global Chart of Accounts COCA/Z001
- Adapting account description:
- Updating or adding descriptions in languages other than English: if possible, check the translation. In case of doubt, ask to language referent person, often the CAD.
- Modifying the English description: if the basic English description is updated, ensure that descriptions in other languages are also reviewed and updated accordingly.
- Changing account parameters (not frequent).
- Adapting account description:
- Changes at a company code level
- Modifying Account Parameters: Changes such as VAT settings, open item management, line item display, or automatic postings must be validated for consistency with the account’s intended use.
Note: Changes at the company code level may require corresponding updates in the global Chart of Accounts (COCA/Z001).
- Modifying Account Parameters: Changes such as VAT settings, open item management, line item display, or automatic postings must be validated for consistency with the account’s intended use.
- Blocking an account at company code level or at global Chart of Accounts level
- P&L accounts : check that there is no posting in the current period.
- B/S accounts : check the zero balance of the account.
- If the request for blocking is at company code level, the check must be made for this company.
- If the request is at Chart of Accounts level, the check must be done in all companies.
3.4 I record the requested updates or block
3.4.1 Activation of the “open item management” flag
If an account is not currently flagged for open item management, it is generally not advisable to activate this setting, especially if postings have already been made to the account. According to SAP best practices, such changes are not recommended. The preferred approach is to create a new G/L account with the same purpose and characteristics as the original, but with open item management enabled from the outset.
However, if this change is deemed absolutely necessary, several key principles must be carefully considered.
General principles :
- “Open item management” (O/I) is only relevant for Balance Sheet accounts.
- “Open item management” cannot be activated for the following types of accounts :
- Reconciliation accounts (“field status group” RECO - managed by third parties sub ledger)
- Main bank accounts (the sub-bank accounts should remain O/I)
- VAT and other assimilated tax accounts (all VAT accounts linked to VAT declarations, to prevent clearing items before they are reported; note that “VAT to be received” and “VAT to be paid” accounts are under O/I management).
- Equity
- Inventories (MM Module only)
- Raw material accounts
- Technical accounts (e.g, data takeover accounts which must be balanced at the end of the cut over process)
- Fixed Assets account
- If the "Open Item Management" flag is modified, the Digital Technology team must execute a specific program to convert the account and its related documents. Failure to properly perform this step will result in the account displaying unreconciled open items that cannot be cleared.
Statutory accounts will follow the IFRS principles. If the account is O/I Managed in IFRS, they should be as so also in Statutory. Nevertheless, it needs to be ensured that there are no local fiscal rules that would go against to O/I standard rules.
Validation
- Verify Open Item Management Status
Check whether the "Open Item Management" option is activated for the account in the reference company (XEU1/MOCO) as well as in other company codes:
- If the option is not activated, challenge the request, as activation is not possible.
- If the option is already activated, further analyze the request to ensure it is justified. If necessary, validate with the responsible Process Owner.
b.Check for Archived Postings
To activate "Open Item Management," the account must not have any archived postings.
Confirm this by running transaction: fbl3n.
Operation
- ERP Solvay : make sure you are working in PF2 client 020.
- Run SAP transaction FSS0.
- Enter account and company code.
- Block the account to prevent posting during the operation, calling menu “G/L account → Block” – in section “Block in company code”, tick “Blocked for posting”.
- Go back to the main tab and tick “Open Item Management”.
- When “open item management” is activated, a specific program must be run to flag all posting items in order to allow their clearing.
- In PF2, this program is launched automatically in background.
- For WP2, a request needs to be made to the IS team to run this program, raising a User Request in SYRA (IT - General Accounting & Close (GAC)/Treasury & Invoice to Cash (TITC) / Other processes). The workflow number should be specified in the “user request” together with a note asking them to copy this reference in the Firefighter action if they use this technique.
- Whilst waiting for UR completion, mark WF request “partially completed”.
- When the program has been processed :
✓ Check that option “open item management” or “line item display” box is ticked in the account master data.
- Unlock the account via the menu “G/L account → Block”, unchecking “blocked for posting”.
3.4.2. Activation of option “line item display”
For reconciliation accounts (“field status group” RECO - managed by third parties sub ledger), “line item display” cannot be active.
Globally, all other accounts should have “line item display” activated.
Specific cases for which the “line item display” would not have been activated need to be validated with Data Management and / or GAC Process Experts.
The operational process to flag the line item display process is similar to 3.4.1.
3.5. I inform the requester about the General Ledger account modification/blocking
When the request is completed, set the workflow to “completed”, with a message to the requester if needed.