new gl functionality_by_guntupalli_hari_krishna_
TRANSCRIPT
New Gl Functionality
New Gl Functionality By Guntupalli Hari Krishna
SAP ERP
T.CODE: FAGL_FLEXGL_IMG
SAP FI/CO – New General Ledger accountingmy SAP ERP
ERP Central Component (ECC) 6.0 Version
Guntupalli Hari Krishna
New General Ledger Accounting - Topics
Sr. No. Topics
1 New GL Accounting – Overview
2 New GL – Evolution, Architecture & TechnicalOverview
3 New GL – Activation Concept
4 Parallel Ledger Concept
5 Real time Integration of CO with FI
6 Document Splitting Concept
7 Segmental Reporting
8 FI Level Planning
9 Changes in ECC 6.0 from earlier versions
New General Ledger Accounting - Foreword
The increased demands on general ledger accounting requires new architecture
concepts for today’s business software. The following list contains some of the aspects
determining the range of functions required of modern, forward-looking general ledger
accounting:
• Standardization of International accounting principles
• Necessity of quicker period-end closing
• Simultaneous implementation of company-specific and industry-specific reportingrequirements
• Cost reduction
• Increased Data transparency
• Greater convergence between financial and management accounting
SAP set out to meet these requirements, and New General Ledger Accounting inmySAP ERP is the result incorporating all of the above points.
mySAP ERP – Evolution history
Evolution History of SAP R/3 to mySAP ERP:
• SAP R/3 Release 4.0B Release Date June 1998
• SAP R/3 Release 4.5B Release Date March 1999
• SAP R/3 Release 4.6B Release Date Dec 1999
• SAP R/3 Release 4.6C Release Date April 2001
• SAP R/3 Enterprise Release 4.70 Release Date March- Dec 2003
• mySAP ERP 2004 (ECC 5.0 version) – 2003 to 2004
• mySAP ERP 2005 (ECC 6.0 version) – 2004 to 2005
A complete architecture change took place with the introduction of my SAP ERP edition
in 2004. R/3 Enterprise was replaced with the introduction of ERP Central Component
(SAP ECC). The SAP Business Warehouse, SAP Strategic Enterprise Management and
Internet Transaction Server were also merged into SAP ECC, allowing users to run them
under one instance. Architectural changes were also made to support an enterprise
services architecture to transition customers to a services-oriented architecture.
mySAP ERP ECC 6.0 – Technical Overview – FastFacts
SAP R/3 Enterprise 4.7:
151,600 Tables & 75,000 Transaction codes (approx)
mySAP ERP ECC 6.0:309,300 Tables & 105,000 Transaction codes (approx)
Three new tables added in new GL accounting namely:
• FAGLFLEXT: It replaces table GLT0. With this table, many scenarios can beportrayed. Definition of own customer fields can be possible.
• FAGLFLEXA & FAGLFLEXP: General ledger oriented or ledger specific line items for both actual and plan items. It contains additional information used in the entry view in BSEG table.
• BSEG-ADD: Used in particular in connection with the ledger approach to portrayparallel accounting.
***Plus, lots of BAPI’s, BADI’s and User Exits are added in ECC 6.0 version.
New GL Activation Concept
New GL Activation concept
Activation Details
• Activation of New General Ledger accounting
• Activate / Deactivate old customization paths
• Update / Read from Classic General Ledger
• Balance comparison – Classic General Ledger with New General
Ledger (helpful during migration)
New General Ledger – Activation Concept
Path: Customization -> Financial accounting -> Financial accounting global
settings -> Activate new GL accounting (Or) Transaction code: FAGL_ACTIVATION
New General Ledger – Activation Concept
Notes:a) The new general ledger is activated automatically in initial installations.
b) If existing customers want to use the new general ledger, they have toactivate it using a Customizing transaction or through FAGL_ACTIVATION.
c) The activation flag is set in each client.
d) Activating new general ledger will result in system-wide changes tothe application menu and screens and customizing paths
New GL accounting – Menu path after activation
- The paths for the new general ledger accounting are in addition to the existing Customizing paths.- The conventional Financial Accounting paths will initially remain available in their present form.
New GL Accounting – Activate/Deactivate Old IMG
Program name: RFAGL_SWAP_IMG_OLD (in SE38 T.Code)
New GL Activation – Update / Read from ClassicGeneral ledger
• Overview:
This section is applicable for clients who migrate from classic GL to New GL. ByDefault, after activation of the new General ledger, the reports only read the tables for the new general ledger accounting – the “Read from Classic general ledger” flag is not set.
In order to read the tables for classic general ledger accounting also (=> tableGLT0), select the checkbox “Read Classic General ledger (GLT0)”. Path and screenshot mentioned in the coming slides.
• SAP Recommendation: Any update of the Classic General Ledger tables should be deactivated afterrunning and verifying the first end-of-period closing, at the latest. If we updatethe tables of both the conventional and the new general ledger, then too manyunneeded data records will be generated.
New GL Activation – Update / Read from Classic General ledger
Path: Customization -> Financial accounting (New) -> Financial accountingglobal settings (New) -> Tools -> Deactivate update of classic general ledger
(GLT0).
New GL Activation – Update / Read from Classic General ledger
New General Ledger – Classic with New General Ledger– Balance Comparison
Overview:
This step is required where update of both classic and new General ledger
is activated. This is mainly to compare the balances so as to check any data
inconsistency in classic and new General ledger.
Note: In contrast to CO, Data is often written to FI in version 001 only.
Path:
Customization -> Financial accounting (New) -> Financial accounting
Global settings (New) -> Tools -> Compare ledgers
Classic with New General Ledger – Balance Comparison – as an Example
New General Ledger Accounting
Parallel Valuation – Parallel Ledger Concept
Parallel Valuation - Overview
Parallel Financial reporting:
• Parallel financial reporting means that a company's financial statements have to be created in accordance with different accounting rules. This is because a local view (=> by U.S. GAAP in the U.S.) is no longer sufficient in a globalized world ofcreditors (banks, shareholders) and business partners. An internationally recognized account standard is increasingly in demand.
• Examples of internationally recognized accounting rules include: - IAS/IFRS - US GAAP
• Parallel valuation approach can be modeled in three ways in SAP: - Creating a different company code for different valuation approach - Creating additional GL accounts in the same COA - Creating Parallel ledgers using same GL accounts in COA – also called as ledgersolution in SAP
With New General Ledger in place, Ledger solution can be the most effective solution approach to address parallel accounting requirements.
IFRS in Telecom Industry - Overview
Following IFRS standards are applicable to Telecom industry:
• Inventory • Long-lived assets • Mass asset accounting • Decommissioning liabilities • Intangible assets • Leases • Revenue Recognition • Segment Reporting
• Out of the various IFRS standards as stated above, Revenue Recognition is a complex issue in telecom industry. Part of the complexity arises due to different types of telecom services. Example – Fixed line service have recognition issues that may differ from wireless services.
• With New GL functionality, Segmental Reporting can be easy out which is verycrucial for telecom industry, having diversified nature of services/segments.
• With New GL functionality, Revenue recognition would be simplified by using theledger concept for varied nature of services
Parallel Valuation – Ledger concept
New General Ledger accounting uses the ledgers known from the application component FI-SL to save totals values. It consists of two ledgers, namely:- Leading Ledger - Non Leading Ledger
Leading Ledger:For each client, there is a leading ledger to which all company codes are assigned. This ledger should contain the group valuation view. Leading ledger is based on the same accounting principle as that of theconsolidated financial statement. It is integrated with all subsidiary ledgers and is updated in all companycodes. It automatically receives the settings that apply to the company code like the localcurrency (and also additional currencies) that are assigned to the company code, uses the same
fiscal year variant and posting period variant that are assigned to the company code.
Non Leading Ledger:We can also create additional ledgers called as non-leading ledgers for each company code. By having different characteristic values and fiscal year definitions, these additional ledgers can be used for different purposes, such as for parallel accounting or for management reporting.
In short, non leading ledgers are parallel ledgers to the leading ledger. We can use these
different ledgers, for example, to model different accounting rules for parallel valuation
Example: Leading Ledger – Local GAAP requirement and Non leading ledger – US GAAP or IAS
or UK GAAP.
Parallel valuation – Ledger concept
Customization steps
• Define Ledgers for general ledger accounting
• Define currencies of leading ledger
• Define and Activate non leading ledgers
• Assign scenarios to ledgers
• Define ledger group
1) Define Ledgers for general ledger accounting
Overview: SAP provides the Leading ledger “0L” by default with the standard systemand assigned to the summary table FAGLFLEXT by default.Similar to leading ledger, non leading ledgers need to be created in this step.
Path: Customization -> Financial accounting (new) -> Financial accounting basic settings(new) -> Ledgers -> Define Leading ledger.
2) Define currencies of Leading ledger
Overview: It takes the first currency as the company code currency by default. If there isany requirement for additional currencies for leading ledgers, it can be created in this path.
Path: Customization -> Financial accounting (new) -> Financial accounting basic settings(new) -> Ledgers -> Define currencies of leading ledger
3) Define and activate Non leading ledgers
Overview: In this step, similar to leading ledger, company code currency is assigned bydefault to non leading ledger. Additional currencies can be created; different fiscal year variant and posting period variant can also be assigned in this step
Path: Customization -> Financial accounting (new) -> Financial accounting basic settings(new) -> Ledgers -> Define and activate non-leading ledgers
4) Assign scenarios to ledgers
Scenario definition:
• A scenario defines which fields are updated in the ledgers (in the general ledger view)during posting. The fields that are updated by the scenarios can be used to model certainbusiness circumstances – such as segmental reporting.
• There are 6 standard scenarios provided by SAP, namely: – Cost center update (FIN_CCA) – Preparations for consolidation (FIN_CONS) – Business area (FIN_GSBER) – Profit center update (FIN_PCA) – Segmentation (FIN_SEGM) – Cost-of-sales accounting (FIN_UKV)
• Depending on this scenario assignment in leading and non-leading ledgers and based on thedocument splitting concept, the above fields will be updated in the general ledger view duringdocument posting and also updated in the general ledger tables for reporting purposes.
• Note 1: We cannot define our own scenarios
• Note 2: A leading and non leading ledger can be assigned one or more scenarios, or even allsix at once.
Path: Customization -> Financial accounting (new) -> Financial accounting basic settings (new)
-> Ledgers -> Assign scenarios and customer fields to ledgers.
Assign Scenarios to Leading and Non leading ledgers
5) Define Ledger groupLedger group definition: It defines the representative ledger in a group. It’s a ledger within a ledger group that is used to determine and check the posting period during postings i.e. whether posting period is determined and whether the posting period is openetc. In case of non-leading ledgers, multiple ledgers can be assigned to a single ledger group, but only one ledger can be assigned as a representative ledger for that ledger group.
Path: Customization -> Financial Accounting (New) -> Financial accounting basic settings (new) -> Ledgers -> Define ledger group.
General points about leading and non leading ledgers
• Almost all the functionality is same in all the ledgers.
• Standard reporting in multiple ledgers is possible.
• Postings into multiple ledgers / per specific ledger are possible. Per specific ledger can be posted through FB01L / FB50L transaction codes.
Parallel Ledgers – Postings to all Ledgers through FB01L /FB50L
In new GL, it is possible to post accruals / journal vouchers specific to a particular ledger.SAP has created new easy access transactions which allow users to key in the ledger group at the time of posting. If ledger group is not specified at the time of transaction processing, it will be posted to all the defined ledgers. Example: Incoming invoice, Outgoing invoice, Payments etc.
Parallel Ledgers – Postings to all Ledgers through FB01L /FB50L
Open item management cannot be posted per individual ledger.Example: Incoming Bank account which is managed on open item basis cannot beposted only to non-leading ledger N1.
Real Time Integration of CO with FI
Real Time Integration of CO with FI
Activation details
• Defining Variants for Real Time Integration and assign variants to
Company code
• Real Time Integration – Trace / Log – an overview
c) Account determination for Real time integration – with / without
substitution rule
Real Time Integration of CO with FI - Advantages
Overview:
The real time integration from financial accounting (FI) to controlling (CO) has been available so far, but the opposite direction from CO to FI was not available in real time in earlier versions and it requires reconciliation ledger postings to be run through transaction code KALC during month end.
This month end procedure can be eliminated once we activate real time integration of CO with FI.
Real Time Integration of CO with FI – Activation Path
Path: Customization -> Financial accounting (New) -> Ledgers -> Real time
integration of Controlling with Financial Accounting
Variants for Real Time Integration CO->FI
Variants for Real Time Integration CO->FI
It consists of:
a) The criteria for real-time integration mainly, cross-company code, cross-business area,cross-functional area, cross-profit center and cross-segment etc., b) The activation date for the real time integration and assignment to Leading ledger 0L. c) Setting up account determination for real time integration.
Real Time Integration CO->FI – Trace / Log:
If necessary, the CO-FI real-time integration can be logged with a trace. If trace is activeduring a CO posting, we can analyze the real-time integration data again at any time – including the following data:a) The document number of the original CO document b) Whether it was a transfer or a test run. c) The document number of the follow-up document in FI if a transfer to FI took place. d) The reason for transfer, but also the reason for a failed transfer. d) The posting mode: online posting or subsequent transfer (subsequent posting / follow-up). e) Posting date, posting time, and user. f) Line item data for the documents: - All posted to objects and partner objects.
Note:
We can activate the trace in the real-time integration variant, it is then active for all users at alltimes. We cannot deactivate it subsequently. As per SAP, that this may result in a significant –potentially undesired – number of log entries.
Assignment of Real time Integration variant toCompany code
Trace log activation - T.code FAGLCOFITRACEADMIN
Note: If the trace is not activated in the real-time integration variant as above,it can still be activated and deactivated user-specifically at any time using thistransaction code.
CO-FI Real Time integration - Example
Manual reposting of costs from one cost center to another cost center
Account Determination for Real Time Integration
Two options are available for Account determination, namely:
a) Account determination without substitution b) Account determination with substitution
Both the steps are mainly used to trace and analyze postings in financial accounting by a
Designated value (Example: assigned GL account through account determination)
Option 1: Account determination without substitution:
This step is used to define the account determination for the real time integration of controlling(CO) with financial accounting (FI) based on the below combinations:• GL Account for reconciliation postings (Example: GL account 6900000005) • GL Account for reconciliation postings along with CO Business transaction.
(Example: Business Transaction: RKU1 (repost costs) with GL account 6900000005)• GL Account for reconciliation postings along with CO Business transaction and CO Object
class (Example: Business Transaction: RKU1 (repost costs), Object class: OCOST (Overheads)with GL account 6900000005)
Option 2: Account determination with substitution – Extended Account determination
Similar to FI substitution through OBBH transaction code; during real time integration of COwith FI, this method replaces the original value in FI with the substituted value during accounting document creation.
Account Determination without Substitution
Path: Customization -> Financial accounting (New) -> Financial accounting globalsettings (New) -> Ledgers -> Real time Integration of Controlling with Financial
Accounting -> Account determination for real time integration -> Define accountdetermination for real time integration.
Account Determination without Substitution
Account determination without Substitution - Example
Example: Cost center reposting from Cost center N0011003 (Administration cost center) to N0011002 (Services cost center) through cost element 6003002001 for INR 15,000. Asper the account determination, accounting document will be created using 6900000005 GL account and not through 6003002001 GL account.
Account determination with Substitution
Substitution rule - Example
Example: As per this substitution step, whenever there is any transfer posting in COusing cost element 6003002002 which initiates real time integration with FI, during accounting document creation, it will be replaced with the GL account 6900000004.
Account determination with substitution - Example
Example: Cost center reposting from Cost center N0011003 (Administration cost center) to N0011002 (Services cost center) through cost element 6003002002 for INR 17,000. Asper the substitution method, accounting document will be created using 6900000004 GL account.
Account Determination for primary cost elementOverview: This step determines whether Account determination takes place forprimary cost elements either with or without substitution method. The reconciliation posting is made to the related GL account for primary cost elements.
Note: If it is not ticked, during reversal of the CO document, accounting document will be posted in FI only based on the original value and not based onthe designated value assigned through account determination procedures mentioned in the previous slides.
New General Ledger Accounting
Document Splitting Concept
New General Ledger – Document splitting OverviewOverview:
Accounting documents contain accounts (such as revenues or expenses) that carryaccount assignments like cost center, profit center etc., Such accounts serve as thebasis for providing account assignments to dependent accounts (such as accounts payable or receivables, tax, for example) according to context (such as invoice or payment).In short, splitting procedure defines how and under which circumstances document splitswill be performed.
Document splitting views:
When new general ledger accounting is active, a financial accounting document always has two views, namely
- Entry view: View of how a document also appears in the sub ledger views /sub ledgers (AP / AR / AA ) - General ledger view: View of how a document appears (only) in the generalledger.
Document splitting – Example (1) – Active splitting
This entry shows how expenses account’s cost center and its relative profit center isautomatically derived into the vendor account through online active splitting functionality
Document splitting – Example (2) – Passive splitting
This is the payment entry for the previous vendor invoice. Even though, no profit center provided to the Bank or vendor account during payments, but it derives theprofit center from the vendor invoice and will be updated in the GL view.
Document splitting – Example (3) – Zero balance clearing
This entry shows how the accounting document will be splitted in GL view when there is adifferent CO object (cost center) in debit and credit entry. Zero balance clearing account (which will be provided in the customization) will be debited and credited with the same amount, mainly to zero-wise each of the profit center’s balance and also to have a complete accounting entry for each profit centers.
Major Steps involved in Document Splitting – Overview
Passive split:
During clearing (during a payment, for example) the account assignments
1. of the items to clear are inherited to the clearing line item[s] (=> such as payables line item[s]).
This step cannot be customized.
Active (rule-based) split:
2. The system splits documents due to (provided or custom defined )
splitting rules
Splitting rules can be configured
Clearing lines/zero balance formation by document:
3. The system creates new clearing lines automatically to achieve
a split You can control this process with the "zero balance flag"
Document splitting – Customization details
• GL Account classification based on standard Item categories
• Classification of document types for document splitting
• Define Zero balance clearing account – mainly to provide entity wise balance for
each document
• Document splitting characteristics for GL account
Document splitting characteristics for Controlling
• Post capitalization of cash discount to assets
• Definition of constants – mainly to provide default business area, profit center
etc.,
• Activation of Document splitting
Definition of Extended splitting – Splitting Rule, Business transactions and
its variant
1) GL Account Classification
• Overview: The first step to customize document splitting is to classify the GL accounts. Classification of the GL accounts is the process to assign GL accounts to an item category. SAP provided standard item categories by default. With the classification of GL accounts, document splitting recognizes how the individual line items are handled.
• Purpose: Each GL account will have its unique importance, based on its statement type whether its P&L or Balance sheet, and based on reconciliation account types like A,D, K, S etc., In order to have the same importance during document splitting, SAP lists whether this particular GL account belongs to Asset or Customer or Vendor or Special GL transactions or Expense or Revenue or the normal Balance sheet item based on Item categories.
Depending upon this item category assignment to the GL account, document will be splitted based on account assignments like cost center or profit center etc. during transaction processing. This configuration is global in nature and has to be carried outin coordination with Chart of accounts design for implementation. It will not be possible to change item category assigned to an account after postings to an account(Refer SAP OSS note 891144 – Risk of subsequent changes). This configuration should be included as a post-processing step whenever any new account is created in COA post implementation.
GL Account Classification – standard Item categories
Item Categories Description
1000 Balance Sheet Account
2000 Customer
2100 Customer: Special G/L Transaction
3000 Vendor
3100 Vendor: Special G/L Transaction
4000 Cash Account
5100 Taxes on Sales/Purchases
5200 Withholding Tax
6000 Material
2) Classify document types for document splitting
Overview:
Each document type will have its unique importance based on vendor invoice,payments, customer invoice, GL account direct journal entry, asset related document types etc. Similar to that, SAP provides the business transactions and variant in document splitting, which mainly classifies whether splitting needs to be done in line with vendor invoice, payments, customer invoice, balance sheet postings etc.,
Depending upon the characteristics of the document type, it needs to beassigned to the business transactions and variant.
Note: If a new document type has been created, immediately it has to beassigned to the business transaction and variant for document splitting, otherwise it would throw an error during transaction entry.
Document splitting – Classify document type for documentsplitting
3) Document Splitting – Define Zero balance clearing account
• The zero balance indicator setting, ensures that the document is balanced according to document split characteristics for the selected dimensions such as Business area, Profit center and Segment etc.,
• In case the balance of account assignment objects is not zero after
document splitting the system generates additional clearing items.
• The triggered line items in the document are posted to the zero balance clearing account defined for each account key in customizing(transaction code: GSP_KD1).
• Therefore, a clearing account has to be created for the additional clearingline items.
Document Splitting – Define Zero balance clearing account
4) Document splitting characteristics for GL Account
Overview:
This step mainly shows about three main document splitting fields namely,Business Area, Profit center and Segment and its relative selection for Zerobalancing and Mandatory field during transaction processing.
Zero Balance checkbox:
To ensure balance of the involved entities like profit center, segment is always ‘0’ for every posting, ensuring ‘entity balancing’.
Mandatory flag checkbox:
It is an extension of the field status for accounts in which the characteristics cannot be “entered” during document entry and that cannot be controlled through the field status. Example: Vendor lines should always include a profitcenter or a segment. It is a check as to whether business process equivalent business transaction variant is selected (which determines whether a splittingcan be found)
Document Splitting Characteristics for GL accounting
5) Document Splitting Characteristics for Controlling
Overview: Similar to document splitting characteristics for General ledgers, document splittingcharacteristics for CO objects like Cost center, Internal Order, WBS element can to be provided. Based on this, during transaction processing (example payments), it will refer the original transaction (example invoice), and derive the cost center from the invoice and update in the payment document.
Example: Passive split for Cost center – Foreign vendor invoice with payment VendorInvoice: Debit Expense account with cost center and credit Vendor account.Payment entry: During payment entry, if there is any expense account like “loss on foreignexchange”, the same cost center updated in expense account during invoice entry will beupdated in Loss on foreign exchange GL account.
Document Splitting Characteristics for Controlling – Example
Foreign vendor invoice and subsequent payment
Document Splitting Characteristics for Controlling –Example Contd.
Foreign vendor invoice and subsequent payment
6) Document splitting – post capitalization of cash discount to assets
The activation of the "Post-Capitalization of Cash Discount to Assets" has theeffect that the cash discount of an asset-relevant payment is not posted tothe cash discount account, but directly to the asset.
Post capitalization of cash discount to assets –Example
Vendor Invoice and subsequent payment with Discount
Post capitalization of cash discount to assets –Example Contd..
Vendor Invoice and subsequent payment with Discount
7) Document splitting – Defining Constants
Document splitting – Defining constants – Example
Example: Transfer of amount from one vendor account to another vendor account.Even though no account assignments made during vendor transfer, it would take the default account assignments from the “constants” in customization
8) Document splitting - Activation
Overview:
Splitting is first activated Client-wide in Customizing. In a subsequent step, we can activate /
deactivate splitting in each company code.
Default Splitting method provided by SAP – 0000000012. It can copied and make necessary
changes if required.
Inheritance:
It means when we create a customer invoice with a revenue line item, for example, the entities(such as business area or profit center or segment) are projected (inherited) to the customer and tax lines in the general ledger view. Same is the case for Passive split as well.
Default account assignment:
The default account assignment can be used to replace all account assignments that could not
be derived from the posting with a constant “value”.
Document splitting activation with / without constants
Document splitting activation with / without constants
Click Deactivation per company code and ensure “Inactive status checkbox has not been selected
9) Extended Document splitting method
• Overview: It includes assignment and activation of splitting method, Splitting rule,Business Transaction and variant, Item category and base item category.
• Customization path: Customization -> Financial accounting (New) -> General Ledger accounting (New) -> Business Transactions -> Document Splitting -> Extended DocumentSplitting
• Splitting method: It defines how the document splitting is performed based on the splittingrule assigned to the splitting method. Standard splitting method is 0000000012. If necessary, copy the standard splitting method and create a new splitting method and makenecessary modifications in the copied splitting rule depending upon the business requirement.
• Splitting Rule: Consists of assignment of Business transactions and its variant.
• Business Transactions: It’s a summation of all the characteristics of a typical business process. SAP delivers standard 10 business transactions and its permitted item categories.
• Business Transaction variant: Special set of characteristics for a business transaction. Itcan be used to restrict further the item categories specified in the business transaction. SAP also delivers standard business transaction variant for the business transactions.
• Item categories: It characterizes the items of an accounting document. It is in line with theGL account’s account type like vendor, customer, asset, GL account etc.
Document splitting method – Standard Splitting Rule
Document splitting – Standard Business transactions
Document splitting Methodology
Document splitting process working methodology with an example:
• Base item categories are assigned to Item categories
• Item categories are assigned to Business transaction variant.
• Business transaction variant is assigned to Business transactions
• Both business transaction and variant are assigned to splitting method.
Document splitting – Important points to be noted
• We cannot activate the document splitting subsequently or deactivate it temporarily(in general, or for individual company codes).
• We cannot temporarily deactivate required entry fields or subsequently activate them in the document splitting (like Profit center, Business area and segments). Example deactivating zerobalance clearing check or mandatory flag check, if it is already activated.
Example: The gross invoice (vendor, GL account, tax) was posted beforehand without required entry field control of a characteristic in the document splitting. At the time of posting, the GL account was not assigned with the characteristics that is now declared as a required entry field. The required account assignment of the vendor line item, which is referenced in the subsequent process (for example, payments, clearing or reversals) is missing. The subsequent process cannot be posted as a result of the error message.
• We cannot activate the open item management of an account subsequently. In particular, we cannot convert the documents that are already posted. The required information is not created for the document splitting, which means that the item now open in this account cannot be cleared.
• A subsequent change of the classification for the document types may lead to inconsistentin account assignments.
• Changing the zero balance clearing accounts or the account key may lead to inconsistencieswhen we carry out a reversal for the document. Since the account determination is processed forthe clearing accounts when we make reversal postings, an account that deviates from theoriginal document is posted to during the reversal.
Document Splitting - Conclusion
SAP delivered configurations for document splitting rules in standard document splittingmethods can serve only as a guide and can work only for standard business processes.In any SAP implementation, there may be certain scenarios or posting rules which is customer specific or non-standard. In such cases, it may necessitate creation of Custom document splitting methods and associated rules and doing necessary modifications only in the Own-defined splitting method. SAP standard configurations should not be changed.
Note – SAP Note Numbers relating to Document splitting
Please refer the following SAP note numbers in order to have a complete
knowledge in Document splitting functionality
- 1085921 (new GL document splitting) and
- 891144 (risks involved in subsequent changes in Document splitting)
New General Ledger Accounting
Segment reporting
1. Segment reporting - Overview
Overview:
The segment field is one of the standard account assignment objects available in SAP to runanalysis for “objects” below company code level. Segments can be used to meet internationalaccounting rules (namely IAS / IFRS / US GAAP).
It simplifies the reporting options in the new general ledger and eliminates the requirement of having a separate PCA / special purpose ledger. This has also helped in reducing many complex month end transactions like balance sheet re-adjustment, transfer of payables / receivables in PCA etc. As per International Financial Reporting Standards (IFRS) reporting Financial information by line of business and by geographical area, which is known as segmentreporting compliance can be met in SAP through Segment functionality.
Segment Derivation:
• Derive through profit center by assigning in profit center master data.
• Passing a JV using segments (directly assigning the segment at document processinglevel itself)
• Derive through BADi (FAGL_DERIVE_SEGMENT).
Segment reporting – Deriving a segment - Steps
Perform the following steps in order to post, analyze and display
segments in documents in new General Ledger
• Define the segment.
Path: SPRO -> Enterprise Structure -> Financial Accounting -> Define segment.
• Define the scenarios: The scenario segmentation has to be defined for the leading ledger(and possibly for other non-leading ledgers).
• Derive the segment. Segment can be derived in three ways:
SAP recommendation on usage of segments:
• The usage of segment has been officially released by SAP in connection with the usage ofprofit centers only – Refer SAP note number 1035140.
• Postings are automatically made to the segment when the profit center is posted to.
• If the profit center does not have a segment, there is no segment account assignment
either. Once segment is assigned to a profit center, the segment field will turn into
“display mode”.
Deriving a segment through Profit center – Example
Segment Reporting
a) Through Financial statement version (transaction code S_PL0_86000028).
Example: Display of GL account balances for SEGMENT 1.
Segment Reporting
b) Display segment wise line item balances (transaction code FAGLL03). Click dynamicselection and select the respective segments in ranges. Also customized reports canbe created through report painter / writer.
New General Ledger Accounting
FI level Planning
New GL accounting - Planning
Overview:
Planning can be carried out in the New GL. This planning process is similar to that of
the planning in controlling. It can be used in New GL accounting to enter and distribute
plan data to create budgets, forecast and other reports.
Customization steps to be followed for creating planning in New GL:
- Define Plan periods
- Define plan versions
- Assign plan version to Fiscal year
- Define planning layout, planner profile
- Define document types and number ranges for planning
Path:
Customization -> Financial accounting (New) -> General Ledger accounting (New)
-> Planning
Step 1: Define Plan periods
In this activity, we can determine the posting periods allowed for entering plan data. Weneed to assign the planning period to the posting period variant which is assigned to thecompany code.
Step 2: Define Plan versions
In this activity, we can maintain plan versions for each ledger. For each fiscalyear, we can post plan data to an unlimited number of versions.
Planning can be done in two ways:Manual planning: Need to plan data manuallyIntegrated planning: Integrated transfer of plan data from the controlling data.
Step 3: Assign plan version to Fiscal year andcompany code
Step 4: Planner profile and layout – standard SAP layout
Step 5: Define Document types and number ranges forplanning
Front end – Enter Plan data – Tcode GP12N
Front end – Plan Vs. Actual report Tcode S_PL0_86000029
FI Level Planning – Additional points
Planning in FI in new GL accounting is based on the combination of GL accounts andProfit center.
Like planning in FI-SL, we can also perform integrated level planning and copy the plandata from CO-OM and CO-PA.
Unlike planning in FI-SL in classic GL, Allocations (plan assessment and plan distribution)can be done in planning in New GL accounting.
New General Ledger Accounting
Changes in ECC 6.0 version from earlier versions
1. Customization changes
Additional nodes added in FI customization – an overview:
• Profit center and Segments: Customization -> Enterprise structure -> Definition –>Profit center and Segment.
• Ledgers: Customization -> Financial accounting (New) -> Financial accountingglobal settings (New) -> Ledgers. Mainly useful for parallel accounting throughparallel ledgers.
• Real time integration of CO with FI: Customization -> Financial accounting (New) -> Financial accounting global settings (New) -> Real time integration of controllingwith financial accounting.
• Extended Document splitting: Customization -> Financial accounting (New) -> General ledger accounting (New) -> Business Transactions -> Document splittingand extended document splitting.
• FI level planning: Customization -> Financial accounting (New) -> General ledgeraccounting (New) -> Planning. This is a replacement for FI-SL level planning
• FI level allocations: Financial accounting (New) -> General ledger accounting (New) -> Periodic processing -> Allocation. This is a replacement for FI-SL levelallocation.
Front end changes
New transaction codes / replacement of old transaction codes – an overview:
• Balance carry forward transaction code for GL is FAGLGVTR in place ofF.16.
• Foreign currency valuation transaction code is FAGL_FC_VAL in place ofF.05.
• Regrouping its FAGLF101 in place of F101.
• Financial statement version transaction code is S_PL0_86000028 (a newdrilldown reporting).
• GL wise line item display – FAGLL03 (similar kind of functionality as FBL3Nexcept drilldown option, but ledger wise line item display can be possible)
• GL wise balance display – FAGLB03 (similar kind of functionality as FS10N,but ledger wise GL balance display can be possible)
• During simulation of a document, we can also find “Simulate in General Ledger” which mainly displays the entire split of related account assignments.
Eliminated closing activities in New GL
Examples of eliminated closing activities in New General ledger – an
overview:
• Transaction KALC is no longer available (by default) after New General LedgerAccounting has been activated – an information message points out the new real-time integration between CO and FI.
• Balance sheet adjustment (=> SAPF180 or transaction codes F.5D and F.5E –example for creation of business area balance sheets)
• Profit and Loss adjustment (=> SAPF181 or transaction code F.50 – examplefor post capitalization of cash discounts)
• Maintenance and use of the various FI-SL ledgers (=> SAPF180A +Transaction codes 1KEH, 1KEI, 1KEJ, 1KEK and 1KE8).
SAP Note numbers for reference
Topics Note Numbers
General Information
New GL - General Information 756146
Reconciliation with CO
New GL - Reconciliation with CO 908019
Document Splitting Concept
New GL - New GL with Document splitting - Legacy data transfer 890237
New GL - Risks involved in subsequent changes of document splitting 891144
New GL - Document Splitting - Zero balance clearing account 961937
New GL - Document Splitting 1085921
Parallel Ledger Concept
New GL - Parallel Accounting 779251
SAP Note numbers for reference
Topics Note Numbers
Profit center and Segment Reporting
New GL - Number of profit centers in classic and new GL accounting 217338
New GL - Profit center in New GL accounting 826357
New GL - Activating Segmentation scenario 1018065
New GL - Segmentation scenario 1035140
Migration Concept
New GL - Migration details 812919
New GL - Migration - Information, Prerequisite and performance 1014364
New GL - Migration - Restrictions and Important information 1039752
New GL - FAQ - New General Ledger Migration 1070629