essentials of new gl

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What Every SAP Customer Now Needs to Know About the New SAP General Ledger (G/L)Stuart ParadiesOdyssey Business Consulting Services

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In This Session …

• Key considerations for implementing the new SAP G/L• new G/L functionality

How do additional ledgers support multiple reporting needs?How can you use segments to achieve International Financial Reporting Standards (IFRS) requirements?What has replaced the reconciliation ledger in CO?What is document splitting and how do you use it to generate fully balanced financial statements?

• Functionality changes as a result of the new G/LWhat has changed in Profit Center Accounting (PCA)?How is cost of sales accounting managed?What enhancements have occurred in parallel accounting?How are allocations performed in the new G/L?What can I expect from planning and reporting in the new G/L?

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In This Session … (cont.)

• Migration to the new G/LWhat options are availableHigh-level overview of the steps involved in using the migration toolset

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What We’ll Cover …

• Key considerations for implementation• new G/L functionality

LedgersSegmentsReal-time integrationDocument splitting

• Changes to existing functionalityProfit centers and cost of sales accountingParallel accountingAllocationsPlanning and reporting

• Migration to the new G/L• Wrap-up

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Reasons

• Reasons for implementing mySAP ERP 2004/SAP ERP 6.0Release support expirationNew installationFull financial statements required below company code levelGlobal/headquarter upgrade initiatives

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Scope

• Scope of financial implementationAre multiple reporting principles required, such as US Generally Accepted Accounting Principles (GAAP) and IFRS?Is segmental reporting required to support Securities and Exchange Commission (SEC) filings or IFRS?Are multiple parallel currencies required to support internal/external reporting needs?Are fully balanced financial statements required at the business-unit level within a company code?Is transfer pricing or the use of statistical key figures for profit centers required?

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ECC 5.0 vs. ECC 6.0/SAP ERP 6.0

• Functionality not available in the new G/L with mySAP ERP 2004 –ERP Central Component (ECC) 5.0:

Transfer pricesStatistical key figuresEuro translationAudit Information System (AIS)ArchivingData retention tool

• There are limitations in the migration tools delivered as part of ECC 5.0 (Support Package 10)

• These are available in SAP ERP 6.0 – ECC 6.0

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Skills Required to Transition to New G/L

• Transition performed as part of a project • Transition impacts all business processes from a reporting

perspective, so representation from all functional areas of the business is recommended

• Specific business financial expertise is required for the following:To identify business reporting needs/organizational structureTo process and analyze key G/L processesTo process and analyze Accounts Payable and Accounts Receivable processesTo validate migration of financial results for which migration tools are used

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Skills Required to Transition to New G/L (cont.)

• Specific consulting expertise may be required for the following:Advice on best practices for implementing the new G/LConfigure/assist with configuring the new G/LPerform/assist with performing any new G/L migration

• SAP will be required to participate with any migration (discussed in later topic)

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Project Phases and Timelines

• Project planning required to identify design approach and implementation strategy

What is the scope of the implementation?Is this a new install or will it be a migration of the existing database to the new G/L?

• Blueprinting facilitates the designing of the new processes and functionality

How will the scope of the implementation impact current processes – change management assessment?Final blueprint of what needs to be implemented, including any technical development work to support the initiative

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Project Phases and Timelines (cont.)

• Realization phase of the project is where you can expect to spend most of the time

Implementing the blueprint designTesting the processes being implemented

• Preparation for go-liveExecute training plans and address other change management requirementsFinal system readiness for launch

• Go-live and support phase of the project continues until the system has stabilized

Actual go-live “weekend”Ongoing system support to ensure stability from go-live is achieved (typically extends to first financial month-end or even quarter-end)

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Project Phases and Timelines (cont.)

• Approximate weighting of project time

10% 30% 40% 15% 5%

Project Preparation

Business Blueprint

Realization Preparation for Go-Live

Go-Live & Support

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Technical Considerations

• New tables and their interaction with existing FI tablesThe red-colored disks represent new tables

BSEG

BKPF_ADD

BKPF

BSEG_ADD

FAGLFLEXT

FAGLFLEXA

FAGLFLEXP

Totals Table

Line Items Table

Planning Table

Entry view for additional ledgers

Entry view for additional ledgers

Planning Layouts

Header Table

Line Item Table

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Ledgers – What Are They?

• Ledgers are a specific view of a database table for reporting purposes

• Ledgers are now an integral part of the new G/L• You can use any number of ledgers simultaneously with a single

user interface• Specific document number ranges can be defined for additional

ledgers to support data entry• Postings per specific ledger supported

Fiscal variant ledger

Local GAAP ledger

IFRSledgerUS GAAP

ledger

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Ledgers – What Did You Have Before?

• Special Purpose Ledger (FI-SL) was typically used in previous versions of SAP for additional ledger reporting

• Separate document numbers would record postings from FI/CO into FI-SL

• Data entry in FI-SL required a different front-end entry screen compared to the classic ledger 0

• Foreign currency translations performed in FI-SL, but require a separate monthly activity compared to ledger 0

FI-SL ledger 2

IAS

FI-SLledger 1

US GAAPLedger 0Local

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Predefined Scenarios in the New G/L

• Delivered, predefined scenarios specify which posting data is transferred from different applications

Cost center updatePreparations for consolidationBusiness areaProfit center updateSegmentationCost of sales accountingCustom scenarios are not possible

• Customer fields can also be defined (e.g., region/order)• Scenarios, customer fields (if any), and versions are defined for

all ledgers

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Ledger Fields

• Fields automatically filled through the various scenarios Cost center update

Cost centerSender cost center

Preparations for consolidationTrading partnerTransaction type

Business areaBusiness areaTrading partner business area

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Ledger Fields (cont.)

• Fields automatically filled through the various scenarios (cont.) Profit center update

Profit centerPartner profit center

SegmentationProfit centerSegmentPartner segment

Cost of sales accountingFunctional areaPartner functional area

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Leading Ledgers

• One ledger is defined as the “leading ledger”• Leading ledger typically reflects the accounting principle for

consolidated reporting – the “main set of books”• All company codes are assigned to the leading ledger

automatically and cannot be deactivated• Asset accounting book depreciation area (01) must post to the

leading ledger

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Leading Ledgers (cont.)

• You can define up to two additional local currencies for the leading ledger over and above local currency 1:

Local currency 1Currency type 10 (company code) cannot be changed

Local currency 2 or 3Currency type 30 (group)Currency type 40 (hard currency)Currency type 50 (index-based currency)Currency type 60 (global company currency)

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Non-Leading Ledgers

• You can use non-leading ledgers to support parallel accounting• Non-leading ledgers are activated by company code• Each non-leading ledger is assigned currency type 10, but may

also be assigned up to two additional local currency types• Non-leading ledgers are assigned to a fiscal year variant by users,

which may be different from the leading ledger• Separate document types and number ranges can be defined for

non-leading ledgers by users, to ensure continuity in ledger numbering

Z1

Non-leading ledger

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Non-Leading Ledgers (cont.)

0L

Leading ledger

Z1

Non-leading ledger

Fiscal year variant K4(Calendar)

Fiscal year variant Z4

(5-4-4)

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Ledger Group

• Combination of ledgers for the purposes of applying the functions of G/L accounting (e.g., posting entries)

• Automatically defined for each ledger• You may create a ledger group and assign ledgers to the group if

collective processing is required • If a ledger is not assigned to a group, processing is performed for

all ledgers automatically• Postings to additional ledgers (non-leading) are performed with

reference to the ledger group

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Representative Ledger

• Must be defined for each ledger group• The system uses the representative ledger to determine the

posting period during posting • Posting is then made to the assigned ledgers of the ledger group

using the appropriate fiscal year variant for each individual ledger

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Rollup Ledger

• Similar functionality to that found in FI-SL• Used to consolidate data from multiple ledgers• Defined in configuration

Associated to a summary table (FAGLFLEXT) Determine whether transaction currency should be used

Could result in duplicate valuesDetermine whether debit and credit amounts from the totals table should be stored separately or aggregatedIdentify whether quantities should be stored (activities)

Results in increased data, thereby decreasing performanceDefine various versions for rollup, if requiredAssign company codes to rollup ledgers

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Ledgers – Key Configuration Points

• Define ledgers• Define non-leading ledgers• Assign additional currencies to leading ledger• Assign non-leading ledgers to company codes and fiscal

year variant• Assign scenarios in G/L accounting to ledgers• Define Ledger Groups and assign Representative Ledger• Define document types for postings to non-leading ledgers• Define and assign number ranges to document types for

non-leading ledgers

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Ledger Configuration

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Segments

• Organizational unit that facilitates the production of financialstatements for divisions within company codes

• US GAAP requires full balance sheet (except shareholders’equity) at the segment level for segmental reporting

Segment defined as sub-area of a company that generates revenues and expenses

• IAS and IFRS require segmental reporting for two key areas:Business segment

Could be represented by segments in SAPGeographic segment

Could be represented by customer field (region) in G/L accounting

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Prerequisites for Segment Use

• Segments are defined in configuration• Profit center characteristic must be active in SAP to allow

automatic determination from profit centers• Segments can also be assigned through the use of Business

Add-In (BAdI) FAGL_DERIVE_SEGMENT, where profit centers are not active

• Manual entry of segments during document entry is also supported

• Document splitting with zero balancing should be active to support financial statements at the segment level (discussed later)

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Segments and Profit Centers

• In order to achieve a segment derivation automation, it is recommended that profit centers be activated in the new G/L and segments be assigned to profit centers

Cost objectsCost centers

WBS elements

Internal orders

Other orders

Profit center SegmentFinancial postings

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Segments in Configuration

Segments defined in

configuration

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Segments – Key Configuration Points

• Define segments• Derive segments using BAdI/Rules• Activate “Segmentation” scenario for all relevant ledgers• Activate “Profit Center” scenario for all relevant ledgers• Assign segments to profit center master records • Maintain additional account assignments in the field status

groups for accounts• Maintain additional account assignments in the field status for

posting keys

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Real-Time Integration – What Is This?

• Real-time integration of CO with FI replaces the reconciliation ledger

• All postings made in CO that result in changes to the values of predefined scenarios in the new G/L are reflected in FI in real time (typically through allocations)

• Changes to the following scenarios are affected:Cross-company codeCross-business areaCross-functional areaCross-profit center Cross-segmentCross-fund

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Real-Time Integration

• A variant is defined for real-time update in configuration and assigned to company codes

Document type is defined for updates in FISelect which criteria cause real-time updates in FIYou can select Business Add-Ins (BAdIs), rules, or all CO documents (not recommended) for update criteria to FI

• Real-time update trace can also be set, but not recommended –use as an expert mode only

• By selecting the rules option, you can define the circumstances under which documents are transferred from CO to FI (e.g., onlycertain business transactions)

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Real-Time Integration (cont.)

Real-time variant

Document Type used for real-time

update

Scenarios under which document lines are selected for real-time

updates from CO to FI

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Real-Time Integration – Key Configuration Points

• Define variants for real-time integration• Assign variants to company codes

Do not assign unless new G/L is active• Define rules for selecting CO line items• Define inter-company clearing accounts

Supports cross-company code allocations in CO• Define account determination

Define G/L account (P&L) to be used for CO postingsCreate an extended account determination using a substitution rule (if required)

• Transfer CO documents retrospectivelyUseful if real-time integration implemented after new G/L is activated

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Your Turn!

Questions?

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Document Splitting

• Purpose is to create fully balanced financial statements below the company code level and support IFRS needs

• Document splitting allows you to display documents using a differentiated representation

• Line items are split according to selected dimensionsProfit centersSegmentsFunctional areasBusiness areas

• Document splitting is defined in configuration and is based on aset of rules

• SAP delivers predefined rules, or custom rules you can maintain• Document splitting is activated by company code

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Document Splitting Characteristics

• Certain characteristics of the new G/L are relevant for splittingEach characteristic defined for splitting is assigned the following:

Mandatory Field Selected field must be filled with a value after splittingZero balance Characteristic will be zero-balanced in documentPartner field Partner field for characteristic

Available characteristics for splitting

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Defining Document Splitting

• Item categoriesSAP predelivers item categoriesIdentifies how line items are to be treated for splitting and derived from account types (i.e., asset, customer)

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Defining Document Splitting (cont.)

• Business Transactions (BT)SAP predelivers business transactionsDetermines which line items may appear in a transaction and which can be modified

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• Business Transaction Variant (BTV)Business transactions are assigned to a transaction variantSpecial versions of business transactions are possible

See example in which BTV 0001 and BT 0300 require vendor

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• G/L accountsEach G/L account must be assigned to an item categoryThis assignment determines how the account is to be interpreted during splitting

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• Document typesEach document type used must be assigned to a business transactionDetermines what type of transaction and, therefore, which item categories are allowable with this document type

Example: “DR” doc type is assigned to BT 0200

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Document Splitting Methods

• Rules are maintained within a splitting method• Combination of the business transactions and item categories

forms a splitting method• Splitting method 0000000012 is the standard delivered and is

recommended to customers• You can also maintain customer-defined methods

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Document Splitting Rules

• Rules determine which item categories will be split and what base will be used to determine splittingSplitting method (e.g., 0000000012)

Business transaction (e.g., 0200 – customer invoice)Item categories (e.g., 02000 – customer)

Base item categories (e.g., 30000 – revenue)

Customer item category to be split based on either of these items

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Working Example – Journal Entry

• Four-line journal entry using segments as the splitting characteristic

• The following master data is relevant:Cost Center 1000 tied to Profit Center P1000Cost Center 2000 tied to Profit Center P2000Profit Center P1000 tied to Segment S100Profit Center P2000 tied to Segment S200Profit Center P3000 tied to Segment S300

• The following entry is required:DR Supplies 510000 Ctr 1000 $1,000DR Supplies 510000 Ctr 2000 $2,000DR COS 400000 Prctr P3000 $3,000CR Accrual 280000 $6,000

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Journal Entry: Data Entry View

$6,000Accrual28000050

S300P3000$3,000Cost of sales40000040

S200P20002000$2,000Supplies51000040

S100P10001000$1,000Supplies51000040

SegmentProfit Center

Cost Center

AmountDescriptionAccountPostingKey (PK)

Period

Fiscal Year

31/12/2008

DEMO

12Posting Date31/12/2008Document Date

Cross-CCDoc SplittingReferenceEURCurrency

2008Company Code1000000000Document Number

Display Document: Data Entry View

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Journal Entry: G/L View

Note how account 280000 for $6,000 is assigned to each of the segments based on the offsetting entries

S100$1,000Accrual28000050

S200$2,000Accrual28000050

S300$3,000Accrual28000050

S300P3000$3,000Cost of sales40000040

S200P20002000$2,000Supplies51000040

S100P10001000$1,000Supplies51000040

SegmentProfitCenter

CostCenter

AmountDescriptionAccountPK

Display Document: General Ledger View

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Document Splitting Characteristics – Other Areas

• ControllingDefine additional characteristics to which document splitting isapplied that may not be relevant for G/L accountingApplies to components that use documents transferred from FICO account assignments are only transferred when the account has also been set up as a cost elementLine items are divided up during the following G/L processes:

Discounts on clearing of vendor/customer line itemsRate differences on foreign currency valuations, etc.

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Document Splitting Characteristics – Other Areas (cont.)

• Post-capitalization of cash discounts to assetsCash discount applied in an asset-relevant invoice can be applied to the assetIf selected, cash discounts are not posted against the cash discount account, but, instead, directly to the asset

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Zero Balancing

• Zero balancing facilitates the creation of balanced financial statements

• System checks whether selected characteristic is zero-balanced after splitting

• If not, system creates an automatic balancing entry using a predefined G/L clearing account

• Zero balancing is assigned to item category 01001 and uses account determination key 000 – defaults

• Posting keys are defined for zero-balancing purposes• You can define multiple zero-balancing accounts for the same key

when different charts of accounts are used

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Defining Zero Balancing

• Assign splitting characteristics to zero balancing

• Assign G/L account for zero balancing

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Document Splitting Constants

• Each characteristic assigned to zero balancing requires a constant

• Constants are defined within a default constant variant• Fields are assigned to the constant variant, together with a

default valueExample SEGMENT – 9999

• Where profit centers are defined for zero balancing, a default profit center is assigned

Note: It is recommended that you use the same profit center as the PCA dummy profit center, where both the new G/L and PCA are used in parallel

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Defining Constants

Select “Assignment of Values” to enter a default segment

Select “Assignment of Profit Center” to enter a default profit center

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Document Splitting – Key Configuration Points

• Assign G/L accounts to item categories• Assign document types to business transactions• Create G/L clearing account in chart of accounts• Define zero-balance G/L account• Define splitting characteristics for G/L• Define splitting characteristics for CO• Define post-capitalization for cash discounts to assets• Define constants for non-assigned processes• Change splitting rules as needed• Activate document splitting • Deactivate company codes not relevant for document splitting

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Document Splitting

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Profit Centers

• Profit centers are now defined as a characteristic of the new G/L and are represented as a scenario

• To use segments, profit centers must be active in the new G/L• Profit center master data supported in the new G/L includes:

Profit centersStandard hierarchy Dummy profit centerAlternative profit center hierarchies (groups)

• PCA in CO is still available, but integration back to FI is not supported

SAP recommends migration toward the new G/L for profit centers, as tables GLPCT and GLPCA will no longer be developedLong-term parallel use of PCA is not recommended

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Changes to Classic Profit Center Accounting

• Adjustment entries with document splitting activeF.5D balance sheet adjustment no longer availableF.50 P&L adjustment no longer available1KEK transfer receivables and payables no longer available

• Additional balance sheet and P&L assignments 3KEH and 3KEI no longer available in SAP ERP 6.03KEI no longer available in mySAP ERP 2004Automatic derivation of profit center values should be performed in FI using substitution rules or BAdIs

• Dummy profit center in PCARoutine for derivation will no longer run if document splitting is active

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Changes to Classic Profit Center Accounting (cont.)

• Transfer of fixed assets1KEI no longer available as of V4.7 due to inconsistencies

• Foreign currency valuationF.05 no longer available for both FI and PCA when new G/L is activatedNew transaction code supports foreign currency valuations

See SAP Note 826357 for more details on PCA functionality in the new G/L

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Profit Centers – Key Configuration Points

• Profit center scenario active in new G/L• Define profit center standard hierarchy• Specify time-dependent fields for profit centers

Segment field can be made time-dependent• Activate Changes Possible to Segment in profit center master

recordTo allow changes to be made to segment field in profit centers

• Dummy profit center/constant profit center PCA derivation tables are no longer supportedPeriodic transfer postings are no longer supported

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Cost of Sales Accounting

• Facilitates the matching of revenue in the P&L to related functional costs

ManufacturingSales and DistributionMarketing, etc.

• Cost of sales accounting is represented in the new G/L as a scenario

• Functional areas are defined in configuration as part of the new G/L and activation occurs at the company code level

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Cost of Sales Accounting Functional Areas

• Functional areas can be added to the following master data elements as was the case before:

G/L accountsCost elementsCost centersOrdersWork Breakdown Structure (WBS) elementNetworks

• They must be activated as an additional account assignment object in Asset Accounting (FI-AA)

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Determining Cost of Sales Accounting Functional Areas

• Functional areas are derived as follows:Assigned object during data entry (e.g., cost center)G/L account or cost element master record (overwrites functional area derived from object above)FI substitution rules using event 0006 (overwrites all previously determined functional areas)

• Functional areas are not determined in these cases:Postings to balance sheet accountsEntry of statistical key figures in CO

• Reporting on functional areas can now be performed out of the new G/L

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Functional Areas – Key Configuration Points

• Cost of sales scenario active in new G/L• Define functional areas• Activate cost of sales accounting• Define functional areas per cost center category• Maintain functional areas in G/L accounts

Mass maintenance option available• Maintain functional areas in cost elements• Maintain functional areas in cost objects• Cost of sales accounting substitution supported through call-up

point 0006 in FI

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Parallel Accounting

• SAP supports multiple accounting principles through the employment of various methods

Additional accountsAdditional ledgersAdditional company codes (not discussed here)

• New in ECC 5.0 and ECC 6.0 is the introduction of Accounting Principles, which works in conjunction with the additional ledgers method to support parallel accounting

• As was the case in previous releases, additional local currencies support parallel accounting

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Parallel Accounting (cont.)

• Additional accountsSeparate set of accounts maintained in the chart of accounts to support specific reporting needs (local vs. group)Could result in a large set of accounts in the chartWhere customers have already implemented this approach and choose to implement the ledgers method, some form of migration will be required

Specific accounts(US/local)

Specific accounts

(HGB)

Common accounts(IFRS/group)

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Parallel Ledgers

• Data recorded in the general ledger may be recorded in multiple ledgers in parallel

• Data for consolidated financial statements could be recorded in the leading ledger

• All other accounting principles could be supported by additional“non-leading” ledgers

• Postings to non-leading ledgers driven by the assignment of accounting principles/valuation areas

• SAP recommends this approach if the “account-based” approach would result in a large chart of accounts

• Standard reporting is supported for all ledgers• This approach results in an increased amount of data

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Impact of Using Parallel Ledgers

• FIReclassification and sorting of receivables and payables

New program posts by sort method and valuation areaChanges to reconciliation accounts are considered

Foreign currency valuationNew valuation program posts by valuation area

Currency translationNew translation program posts by valuation area

AccrualsCalculations and posting of manual accruals by valuation area simultaneously

Provisions and manual postingsMay be performed simultaneously or to separate accounting principles

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Impact of Using Parallel Ledgers (cont.)

• FI-AAManage parallel accounting through the use of depreciation areasDepreciation area 01 posts to all parallel ledgersLeading ledger MUST be assigned to depreciation area 01New wizard in configuration to assist with the assignment of parallel valuation in FI-AAPosting Acquisition and Production Costs (APC) differences is an option for posting to the G/L periodically (program RAPERB2000), where multiple ledgers are used:

Collects data by fiscal year, period, account group, and affiliated company, and creates a collective documentReduces the amount of data being posted to the G/L

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• COCO allocations creating shifts between segments or functional areas can be transferred to all ledgersCalculations of WIP and results analysis are performed using different valuation methods

Define different versions for results analysis based on principlesAssign accounting principle to posting rules for the results analysis version

All CO-relevant values in the leading ledger are transferredto COPostings updated exclusively in non-leading ledgers are NOT transferred to CO

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• Materials Management (MM)Differences between current stock value and stock value determined during valuation using balance sheet valuation procedures are issued in a reportManual entries can then be made to parallel ledgers

Postings cannot be made automatically due to price changesTo create automatic postings to parallel ledgers, you can use alternative valuation runPrice fields on the material master can be used to manage alternate valuations

Tax-based price fieldCommercial-based price field

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Features of Using Parallel Ledgers

• Ledger groupLedger-specific postings can be updated to all ledgers in that group simultaneously

• Ledger selectionWhere no ledger or group is specified, postings are made to ALL ledgersManual postings made to individual ledgers by assigning the ledger group in the document headerPostings created through automatic valuations, such as foreign currency valuation and translations, contain the account assignment accounting principleAccounting principles are assigned to ledger groups in configuration

SAP recommends a separate document type for specific ledger updates

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Accounting Principles

• Accounting principles are defined in configuration• You can combine different principles for performance reasons

(IAS/IFRS)• Accounting principles assist in managing various valuations for

reporting purposes and results stored in additional ledgers• Assigned to a ledger group that has already been defined• Valuation methods for foreign currency are defined and assigned

to valuation areas• Valuation areas, in turn, are assigned to accounting principles• Assignment of translation postings are managed by valuation

areas to facilitate various accounting principles

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Parallel Accounting – Key Configuration Points

• Define ledgers for parallel accounting• Define currencies for leading ledger• Define and activate non-leading ledgers• Define ledger groups• Define accounting principles• Assign accounting principles to ledger groups • Define document types for one ledger• Define valuation areas• Assign valuation areas to accounting principles• Define versions for results analysis• Assign versions to accounting principles

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Journal Entry with Multiple Ledgers/Parallel Accounting

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Your Turn!

Questions?

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Allocations

• Similar to FI-SL, allocations can now be carried out in the new G/L• G/L characteristics can be allocated through assessments

and distributions• SAP recommends performing overhead allocations in CO• Actual and plan data can be allocated• Allocations are managed within a cycle• Statistical key figures (e.g., number of employees) can be used as

tracing factors for periodic allocationsOnly available in SAP ERP 6.0 ECC 6.0

• Sender values determined on the following basis:Posted amountsFixed amounts Fixed rates

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Allocations (cont.)

• Receiver values determined on the following basis:Variable portionsFixed amountsFixed percentagesFixed portions

• SAP recommends splitting allocations in various cyclesPerformance – run time increases the segments involvedReasons specific to allocation – easily rerun cycles

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Allocations – Key Configuration Points

• Define field usage for:DistributionsAssessments

• Define account determination for allocationZero-balance clearing account

• Check settings for allocationTools available to check configuration for allocations

• Define statistical key figure master dataOnly available in SAP ERP 6.0 ECC 6.0

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Allocations – Menu Path

Allocations for new G/L under

the GeneralLedger section

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Planning

• Similar to planning in FI-SL, this is now possible in the new G/L• Two options for entering plan data:

Total amounts that are distributed to planning periodsPeriod amounts

• Specific periods can be defined to allow planning• The FI periods for actual postings do not have to be open to

facilitate planning updates• Planning versions facilitate various “what-if” scenarios• You can maintain distribution keys to distribute plan amounts• Planning layouts are created based on summary table

FAGLFLEXT, and can be integrated with Microsoft Excel

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Planning (cont.)

• Characteristics, key figures, and entry screen view are identified within the layout

• A planner profile is defined and assigned to the layout

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Planning and Other Components

• You can copy plan data to the G/L from:Cost Center Accounting (CO-CCA)Profitability Analysis (CO-PA)

Online data transfer should be performed only when no other postings are being madeIn other cases, only transfer data from closed periods

• To transfer plan data, the following prerequisites exist: CO:

CO and G/L plan version must share the same nameCO plan version must have “plan integration” indicator set

G/L:Plan version for ledger must be unblockedActivate “line items for planning” if line items are to be transferredAssign company codes to non-leading ledgers if used

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Planning – Key Configuration Points

• Define plan periods• Define plan versions

Same as CO-CCA if online transfer is required• Assign plan version to fiscal year and activate• Activate line items for planning (if required)• Define user-defined distribution keys (if required)• Define planning layout• Define and assign planner profile• Define document types for planning• Define number range for planning document types

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Reporting

• G/L reports available that introduce new characteristics based on active scenarios (such as segment, profit center)

• New transaction codes available to support reporting of G/L balances, line items, and financial statements

• Custom reports created using Report Painter• Drill-down capability• Report outputs allow for:

Classic drill-down reportingObject lists (more than one lead column)Graphical report output

• New menu path exists for running reports for the new G/L:Accounting Financial Accounting General Ledger Information System General Ledger Reports (New)

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Key Figure Reports

• With constantsAllow evaluations on non-financial statement data, such as number of employees or square feetYou can restrict constants to any of the following, or maintain different values for each different:

Company codeBusiness areaFiscal yearPeriod

• Without constantsCalculates financial statement items without constants, such as debt/equity ratio Derived from the financial statement version debt and equity sections

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G/L Account Balance Reports

• Previous FS10N is still available for classic view• New FAGLB03 reports on any of the new scenarios

Dynamic selections

allow additional selection

parameters

Filter by range of

segments

0001

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G/L Account Balance Reports (cont.)

Filter options available for

additional segmentation

Balances displayed by

company code and any

additional characteristics

selected

0001

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G/L Line Item Reports

• Previous FBL3N is still available for classic view• New FAGLL03 reports on any G/L scenario

Additional selections

available for G/L line items

new G/L line item display

0001

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G/L Line Item Reports (cont.)

new G/L line item display with characteristics as

columns0001

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G/L Account Balance and Financial Statements

• G/L account balances (trial balance)Previous S_ALR_87012277 produces the classic viewNew S_PL0_86000030 new account balances report

0001

101

G/L Account Balance

Drilldown by different characteristics is possible

through the navigation option0001

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G/L Account Balance and Financial Statements

• Financial statementsPrevious S_ALR_87012284 produces the classic viewNew S_PL0_86000028 new G/L financial statementsNotes to the financial statements are also possible

0001

103

Financial Statements

Drilldown by different characteristics is possible

through the navigation option

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Reporting – Key Configuration Points

• Define balance displayInteractive characteristics

• Create/change forms for new G/L reportsReport Painter

• Create/change reports for new G/LCharacteristicsVariables

• Define constants• Enter constant values

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Account Balance Reporting

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Migration to the New G/L

• Two options available to existing customers:New customer installMigration

• New customer installInstall SAP as if converting from another legacy systemCreates a “fresh start” for existing customersData conversions required (data extracts and loads)Data is split and posted to new G/L when loaded to new systemMigration may occur at any point throughout the fiscal year

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Migration to the New G/L (cont.)

• MigrationInvolves migrating existing data from classic ledgers to thenew G/LSAP provides migration tools to perform the migrationMigrations must be performed within a project SAP is required to be involved with migrations and provide back-office support (SAP Note 812919)Migration must occur over a fiscal year

There are strategies to deal with organizations that have multiple company codes in the same instance and have different fiscal year ends

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Services for Migration to the New G/L

• Services that SAP offers with new G/L migration include:Validation of migration scenariosScenario-based migration programsPreconfigured migration settings for the migrationConsistency check of the migration customizing settingsTechnical consistency check of the migrated dataSupport throughout the duration of the migration project through the new G/L Migration Back Office

• SAP ERP 6.0 (ECC 6.0) offers simulation tools to further aid with the migration process

• The migration tools have been back-ported to mySAP ERP 2004 ECC 5.0 with Support Package 10

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Migration Dates

• Migration dateThe start of the fiscal year for which migration is performed

• Activation dateDate new G/L is activated

Phase 0 Phase 1 Phase 2

Old Fiscal Year Fiscal Year End

Migration date

Classic General Ledger

Classic General Ledger

New Fiscal Year

Activation date

new General Ledger

Design and configuration

Closing and migration

Activation and use

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Migration Process

1. Set up customization of new G/L2. Set up customization of the migration 3. Perform year-end closing operations

Posting periods must be closed for prior year4. Start the migration5. Create worklists6. Create splitting information (if relevant) for open items7. Create splitting information (if relevant) for documents8. Post open items to new G/L9. Post documents to new G/L10. Post balance carry forward to new G/L

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Migration Process (cont.)

11. If applicable, perform manual reposting of balance carry forward to dimensions not contained in classic G/L (e.g., profit center)

12. Activate new G/L13. End migration14. Deactivate classic G/L after transition period

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Key Migration Activities

• Open itemsAll items (customers, vendors, G/L accounts) flagged as OPEN on the migration date are included in the worklistSystem performs splitting on these items and updates them to the new G/L (if document splitting is activated)All other non-open line items included in documents that have open items are not transferred to the new G/L through this process

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Key Migration Activities (cont.)

• Balance forwardAll other G/L accounts (non-open items) are transferred to the new G/L using period zero totals from GLT0Additional repostings may be required to assign amounts to dimensions not contained in GLT0 (e.g., profit center or segment)

• Current year documentsAll documents created since the migration date and before the activation date are included in a separate worklistThese documents are split and posted to the new G/L in their entirety

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Points to Consider When Migrating

• Timing of migrationMigration should occur shortly after the year-end is concluded

Minimizes number of documents to migrateReduces risk of errors occurring with current postings

• ScenariosConsideration given to the type of scenarios

Alternate ledgersDocument splitting on multiple characteristics, etc. Different fiscal year-ends in the same migration plan

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Points to Consider When Migrating (cont.)

• Company codes Consider company codes included in migration plans

Is document splitting required in the post-migration environment?Are there cross-company documents between company codes?

• Clearing open itemsConsider cleaning up long-outstanding open items prior to migration

Reduces risk of potential errorsImproves performance of migration (less data to migrate)

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Resources

• SAP training courseAC210 – “New General Ledger”

Extensive training course on the new G/L offered by SAP• SAP Service Marketplace – http://service.sap.com *

General information notes on the new G/LSAP Note 826357 – Profit Center AccountingSAP Note 779251 – Parallel AccountingSAP Note 927241 – FAQ new G/L accounting

• On your take home CD:More detail on document splitting, parallel accounting, parallel accounting and currencies, migration scenarios, phases of the migration process, and lessons learned

* Requires login credentials to the SAP Service Marketplace

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Resources (cont.)

• SAP Help onlinehttp://help.sap.com/saphelp_erp2005vp/helpdata/en/2d/830e405c538f5ce10000000a155106/frameset.htm

Details of the new functionality available in the new G/L• Financials Expert

Gary Fullmer, “What’s Happened to Your R/3 Functionality in mySAP ERP 2004?” (Financials Expert, February 2005).

Summary of key changes in mySAP ERP 2004• Odyssey Business Consulting Online

www.odysseybcs.com/pdf/TheOdysseyQuarterlyJan-Mar2007.pdf

Highlights of the new G/L functionality

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7 Key Points to Take Home

• Additional ledgers can assist with multiple reporting requirements, simplifying data entry, and reducing the number ofaccounts required for parallel accounting

• Segments are a new organizational object that can facilitate segmental reporting and support financial statements below the company code level

• Real-time integration between CO and FI has replaced the reconciliation ledger. It creates real-time updates for any CO-related postings that cross G/L characteristics, reducing the risk of CO and FI being out of balance.

• Document splitting enables the creation of fully balanced financial statements for any predefined characteristic of the new G/L

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7 Key Points to Take Home (cont.)

• Allocations can be performed in the new G/L on any characteristic. Assessments or distributions can be carried out on any G/L account.

• Planning can be performed in the new G/L, enabling plan vs. actual reporting directly from the G/L. You can customize reports with Report Painter/Writer.

• Migration tools are provided by SAP to support the migration from the “classic” to the new G/L, but any such initiative requires support from SAP’s migration team

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Your Turn!

How to contact me:Stuart Paradies

[email protected]

DisclaimerSAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver®, Duet™, PartnerEdge, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Wellesley Information Services is neither owned nor controlled by SAP.

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