During general ledger integration, the items updated on the current accounts are transferred to the corresponding general ledger accounts (FI GL).

The following data and details are taken into consideration:

• The updating of the items posted to the G/L accounts and the updating of interest and charge income and expense.
• The distribution of the balances of the transferred current accounts to receivable or payable accounts, depending on the balance +/- sign.
• The netting of the current accounts in balance sheet preparation in accordance with §10 RechKredV (German law).

Additionally, you have the option of carrying out interest accrual/deferral for balance sheet preparation.

The general ledger accounts to which the transfer of the items is to be made must be set up in FI and specified accordingly in the Customizing settings. Learn how to do this by reading the section on general ledger transfer in the Implementation Guide (IMG). Choose Periodic tasks ® General ledger transfer.

General ledger transfer is divided into the following steps:

In this step the current balances of the current accounts are prepared for the transfer posting to the receivable and payable accounts. Balances already existing on the general ledger are taken into consideration. Totals formation takes place during the updating of the payment items according to the criteria specified in Customizing (transaction types and account groups).

You can execute balance sheet preparation either for the current day’s date or for a past posting date.

In this step the system creates FI documents from the totals records prepared and posted to the general ledger in the previous step. Following are details of the postings that are made:

• First the payment items are posted to a clearing account, initially comprising both the debit and credit items jointly (in future called clearing account receivables/payables). The offsetting posting is to a clearing account for payment transactions (in future called clearing account PT, for payment-affecting items).
• The interest and charge items posted in the current account system are also transferred to the clearing account receivables/payables. The corresponding income or expense account serves as offsetting account.
• Depending on whether a debit or credit balance is involved, the balance of a current account is transferred to a receivable or payable account. In another step, the necessary transfer postings from the clearing account receivables/payables are then made to the respective accounts.
• The totals from the interest accrual/deferral are posted to the respective income and expense accounts in accordance with the Customizing settings.

Normally, the sequence for the steps described above is as follows:

If an interest accrual/deferral is to be transferred to the general ledger, this must be executed before the general ledger transfer. Decide in what intervals this is necessary (depending on when balance sheet preparations are created).

Balance sheet preparation is necessary for the transfer of the balances. This is split into a balance sheet preparation of postings executed in former account (backdated) and a general balance sheet preparation.

You can randomly choose the sequence in which the interest accrual/deferral and balance sheet preparation are carried out. Only one function can be executed.

Subsequently, you must execute general ledger transfer to create the postings in FI.