Anyone has the basic intro of FI terms explaination in SD?

Question

Hi Team,
Is there any one has the basic intro for FI terms in SD? Coz i really quite not understand those FI terms like G/L account/Accout group/revenue account determination..etc.
And what kind of deep relation between FI and SD.
Thank you!!

Answer 1

Hoo Laa
1)  G/L Account
To create accruals and post payables, the system must first of all determine the correct G/L accounts for posting in FI.
In short, we can also call G/L Account as a book of final entry summarizing all of a company's financial transactions, through offsetting debit and credit accounts.
2)  Account Group
Using the account group, you can group the G/L accounts according to functional area.
You can define any number of hierarchical structures of accounts for use in the information system, allocations and planning. These structures are called "Account Groups".  Each account group is assigned to a chart of accounts. You can only use an account group in multiple controlling areas if those controlling areas use the same chart of accounts.
The account group also defines the set up when creating a G/L account in the company code and chart of accounts. By defining the number interval and the screen layout, you simplify G/L account creation by reducing the number of entry fields.
3)  Revenue Account Determination
You can define the Revenue Account for transferring billing values from SD to FI module. Revenue account determination is carried out using the condition technique.
Many companies require that revenues are calculated according to time period. This means that the revenues must be implemented in the posting period, in which the service was carried out, and not in the posting period in which the billing document was set up. The revenue recognition function in the SAP R/3 system helps you to fulfil these requirements and separate revenue recognition from the billing process. The R/3 system offers a flexible solution to companies using various methods of revenue recognition
thanks
G. Lakshmipathi