new gl overview

7/29/2019 New GL Overview

1/45

General Ledger in

SAP ERP 6.0

Solution Management FinancialsSAP AG


2/45

SAP 2007 / Page 2

Agenda

1. Requirements and Architecture2. Benefits of the General Ledger

3. Positioning and Availability

4. Customers

5. Summary


3/45

SAP 2007 / Page 3

The New General Ledger Motivat ion

Extensibility

Balanced booksin any dimension

Parallelaccounting

Fast closeTotal cost of

ownershipreduction

Transparency

Compliance

Legal entityreporting

Segmentreporting

Managementreporting

New GL inSAP ERP 6.0


4/45

SAP 2007 / Page 4

General Ledger in SAP ERP 6.0 Architecture

Legal, Segment, and Management Reporting

. . .

General Ledger in SAP ERP 6.0

Company Segment Partner CoLedger Func. AreaPartner Seg

Accounting Interface

Logistics / HR Financial Supply Chain Acctng Subledgers

SAP Consolidation

(Consolidated)


5/45

SAP 2007 / Page 5

GL in SAP ERP 6.0 Standard Structure

General Account + Subaccnts Industry Template

+ Grant

+ Fund

+

ERP2005

Ledger Account

Transaction Type

Functional Area

Value in TC

Value in LC Value in GC

Org Units Company

Segment

Profit Center

Partner Company

Partner Segment

Partner Profit Center

Customer Extension+

+

Despite its flexibility, General Ledger is no substitute for SAP Profitability Analysis orSAP Business Information Warehouse.

Reasons: Data volume, performance, functionality.


6/45SAP 2007 / Page 6

Agenda

1. Requirements and Architecture2. Benefits of the General Ledger


4. Customers

5. Summary


7/45SAP 2007 / Page 7

New General Ledger Benefits and Concepts

Multi-dimensional balancing

Debit

6040

Credit

6040

Local GAAP

US GAAP

xxx xxxxxx

Document entry

Debit

100

Accnt / SEG

-------------------- A

---------- B

Credit

60

40

Online

Split

IFRS

xxx xxx xxx xxx xxxxxx

Multi-dimensional

Benefits of the New GL:

Unified Financial &Management Acctg

Extensibility for customer dimensions Support of multiple reporting rqmnts

Support of Parallel Accounting

Fast Close

Increased transparency Reduced TCO

Multi-ledger update

Multiple

v

aluation

Accnt / SEG

---------- A---------- B

---------- A---------- B


8/45SAP 2007 / Page 8

General Ledger in SAP ERP 6.0 Benefits (1)

Unified Financial and Management Accounting

One version of the truth stored in the General Ledger

Same valuation

No inconsistency No reconciliation

Supports different reporting purposes

Legal entity reporting Segment reporting

Management reporting

Multi-dimensional analysis Account analysis, Drilldown reporting

BW Remote reporting slide and dice for all dimensions

Pre-defined reports delivered as SAP content


9/45SAP 2007 / Page 9

BW Report ing for General Ledger

Company, Segment, PC,

FI

CO

. . .

Company, Segment, Profit Center, Functional Area, Transaction Type,

SAP BWGeneralLedger

Remote Extractor

Periodic Extractor

SAP ERP 6.0 is based on SAP NetWeaver which includes BW reporting.

Therefore, there is only 1 system required.


10/45SAP 2007 / Page 10


Extensibility for customer dimensions

Option to expand standard accounting with

Industry specific fields

Customer-defined fields

Meets international expectations

Integration of management dimensions in the GL

Supports allocation on additional dimensions in the GL

Important for industry solutions

Possibility to adjust to own requirements and terminology


11/45SAP 2007 / Page 11


Balanced Books for any dimension

Essential for segment reporting and management reporting

Balance sheet for segments

KPI including B/S accounts

Important for various industries

Public sector, Insurance, Media,

Often legal requirements

Dimensions can be defined in the configuration.

There is a new standard field segment in SAP ERP 6.0.

Segment is derived from a profit center (PC).

It can be filled manually or defaulted.

Option to determine it via a BAdI (Business AddIn)

Recommended for segment reporting (in case there are too many PCs)


12/45SAP 2007 / Page 12

Balanced Books for any Dimension

Entry View

Data entry: Expenses for two profit centers

Expenses are entered for two cost centers from which profit centers and

segments are derived. Payables are entered as one total amount.The total tax amount is derived accordingly.


13/45SAP 2007 / Page 13

Balanced Books for any Dimension GL View

In the GL view, payables and taxes are split online by profit centers

and segments. The ratio is picked from the expense items.


14/45SAP 2007 / Page 14

Online Split for Process Chains Invoice

Enrichment

Entry View GL View

Posting

Vendor Invoice

PK Account PrCtr CCtr Amount

40 Expense PC01 CC01 40040 Expense PC02 CC02 60031 Payables 1000-

Vendor Invoice


40 Expense PC01 CC01 40040 Expense PC02 CC02 60031 Payables PC01 400-31 Payables PC02 600-

Document 4711

The split info (PC01 40%,PC02 60%) is stored for usage

in subsequent processes.

TotalsSingleItems

Doc 4711

SplitInfo

Table

Posting


15/45

SAP 2007 / Page 15

Online Split for Process Chains Payment (1)

In a first automatic step, additional costs are broken down according to the split info.

Enriched DocumentEntry View

Payment


25 Payables 100050 Bank 970-50 Discount 30-

Payment


25 Payables 100050 Bank 970-50 Discount PC01 CC01 12-50 Discount PC02 CC02 18-

Split of the discount

Split

InfoTable

The split info (PC01 40%, PC02 60%)is applied on the discount of the payment.


16/45

SAP 2007 / Page 16

Online Split for Process Chains Payment (2)

Enriched Document GL View

EnrichmentCleared Document

Payment


25 Payables 100050 Bank 970-50 Discount PC01 CC01 12-50 Discount PC02 CC02 18-

PK Account PrCtr CCtr Amount25 Payables PC01 40025 Payables PC02 600

50 Bank PC01 388-50 Bank PC02 582-50 Discount PC01 CC01 12-50 Discount PC02 CC02 18-

Posting

The split info (PC01 40%,

PC02 60%) is also applied onpayables and bank account.

Totals

SingleItems

Doc 4712

Split

Info

Table

Posting

G l L d i SAP ERP 6 0 B fit (4)


17/45

SAP 2007 / Page 17


Parallel Accounting

The New General Ledger supports Parallel Accounting by using either parallel accountsor parallel ledgers.

In New GL, both approaches are considered equally powerful.The choice will depend on the specific customer situation.

The parallel accounts approach in the New GL is as powerful as in classic GL in R/3.

The parallel ledgers approach in the New GL is much betterthanthe SAP R/3 approach of using classic GL plus the special ledger application.

P ll l A ti b i P ll l L d


18/45

SAP 2007 / Page 18

Parallel Accounting by using Parallel Ledgers

Parallel Accounting Details

Any number of parallel ledgers

For parallel valuation local GAAP, group GAAP, tax purposes

For different fiscal year variants

Same UI for all ledgers (data entry, functions, reporting)

Almost the same functionality for all ledgers

Standard reporting for multiple ledgers

Postings into multiple ledgers

Postings per specific ledger

Closing activities are run separately in parallel ledgers.

P ll l A ti Th L di L d


19/45

SAP 2007 / Page 19

Parallel Accounting The Leading Ledger

In GL, one ledger is assigned the role of the leading ledger. Group valuation is usuallymapped in this ledger.

All company codes are automatically assigned to the leading ledger (cannot be deactivated).

If parallel reporting is done by parallel accounts, then there is exactly one ledger in the NewGL, the leading ledger.

For parallel reporting via parallel ledgers, the customer can add additional ledgersto the New GL per company code.

The leading area of asset accounting (area 01) is posted to the leading ledger.

Controlling is integrated to the leading ledger.

Parallel Ledgers Posting to all Ledgers


20/45

SAP 2007 / Page 20

Parallel Ledgers Posting to all Ledgers

If ledger is not specified at time of document entry: Posting to all defined GL ledgers

Typical transactions: Ingoing invoice, Outgoing invoice, Payment

Ledger A(IAS)

(leadingledger)

Ledger C(HGB)

Ledger B(US GAAP)

Parallel Ledgers Posting to one Ledger


21/45

SAP 2007 / Page 21

Parallel Ledgers Posting to one Ledger

B

If ledger is specified at time of document entry: Posting to the specified ledger only

Typical transactions: Valuation postings, Period end postings

Ledger A(IAS)

(leadingledger)

Ledger C(HGB)

Ledger B(US GAAP)

Parallel Accounting for Primary Processes


22/45

SAP 2007 / Page 22

Parallel Accounting for Primary Processes

Primary Processes

Invoices, Payments,

Creation ofone document for allparallel ledgers


Online split, substitution,

Ledger

L1

Ledger

L2

Fiscal year variant and subset of

dimensions may differ per ledger.

Parallel Accounting for Secondary Processes


23/45

SAP 2007 / Page 23

Parallel Accounting for Secondary Processes

Secondary Processes, e.g. IFRS

Allocation, Currency Valuation,Carry Forward,

Creation ofparallel documents,separate documents per ledger

Secondary Processes,Local GAAP

Allocation, Currency Valuation,Carry Forward,



Full parallel accounting: different settings for

valuation, fiscal year variant, selected dimensions



Ledger L2Ledger L1

General Ledger in SAP ERP 6 0 Benefits (5)


24/45

SAP 2007 / Page 24


Fast Close

Many period-end activities are no longer required:

Document online split substitutes batch split at period end.

Real-time posting from CO into FI - no longer at period end.

Legal and management data are in one uniform database.Closing activities are run just once and not multiple times.

One uniform database instead of multiple related databasessaves a lot of reconciliation time.

There is more time for analysis and better decision support.

General Ledger in SAP ERP 6 0 Benefits (6)


25/45

SAP 2007 / Page 25


Corporate Governance

Perfect support of transparency

Legal entity, segment and management reporting as unified whole

Same procedures and same quality for all valuations

Document principle, entry view linked to each ledger

Less manual processing

less risk of non-compliance Less double processing less risk of non-compliance



26/45

SAP 2007 / Page 26


TCO Reduction

Configuration

Best fit no discussions about which component to choose

Reduction of implementation costs just one component Reduction of costs for end user training

Daily Business

Reduced manual reconciliation and balancing activities

Less effort for enhancing / changing the system

Technique

No data redundancy less data volume reduced data storage

Reduced ongoing maintenance and developmenttime

Agenda


27/45

SAP 2007 / Page 27

Agenda

1. Requirements and Architecture

2. Benefits of the General Ledger


4. Customers

5. Summary

New General Ledger Availability


28/45

SAP 2007 / Page 28

New General Ledger Availability

New Installations

New GL is the default setting for all new installations.

Upgrade Installations

Customers are not required to change and may continue using Classic GL. Customers may run a separate migration project at a later point of time.

New GL in ERP 2004

Unrestricted availability since the end of February 2005.

New GL in ERP 2005

Unrestricted availability since Q2 / 2006

New GL in SAP Enhancement Package 3 for SAP ERP 6.0

Available in December 2007 for Ramp-Up customers

More details on www.service.sap.com/rampup

Scenario-based SAP General Ledger Migration service

Fully available since Q2 2007

Migration training AC212 (for certain migration scenarios) available since Q2 2007

SAP Enhancement Package 3 for SAP ERP 6.0


29/45

SAP 2007 / Page 29

g

New GL

Parallel Accounting

Posting and clearing ledger-group- specific documents on open item managed G/L accounts

Planning

Cumulative display for B/S accounts during plan data entry

Real-time integration of CO plan data to G/L

Upload of plan data from external data sources

New Authorization Check for Profit Centers when posting, clearing and displaying documents

New Standard Reports

for Profit Centers and Segments (Drill-Down)

Conversion Tool

to transfer Classic Profit Center Reports to New G/L

New Customers


30/45

SAP 2007 / Page 30

The New General Ledger is default for new installations.

It is based on proven functionality and technology of the classic G/L in R/3 which is currentlyused at more than 10.000 customers.

The classic G/L remains available in SAP ERP 6.0

for upgrade customers

for new customers with specific industry requirements (e.g. J oint Venture Accounting).

Upgrade Customers


31/45

SAP 2007 / Page 31

pg

The classic G/L is still available in SAP ERP 6.0.

Upgrade installations will continue to use their current applications per default.

Customers who are satisfied with their current installation will not be required to changeanything and will not be affected at all.

SAP offers the SAP General Ledger Migration service which combines the general ledgermigration cockpit and service sessions to ensure a safe migration.

Even with the availability ofthe general ledger migration cockpit, there is no push-button

solution. Customers are strongly advised to set up a separate project for changing from theclassic G/L to the New GL.

For further information about the SAP General Ledger Migration please

refer to http://service.sap.com/GLMIG

GL in SAP R/3 Enterprise and SAP ERP 6.0
http://service.sap.com/GLMIGhttp://service.sap.com/GLMIG


32/45

SAP 2007 / Page 32

General Ledger in SAP R/3 Enterprise General Ledger in SAP ERP 6.0

Multiple Applications

Classic GL

LegalRequirements

SAP ERP 6.0: A Unified World

General Ledger supports

Legal Requirements

Mgmt. and Segment reporting

Extensibility by Industries

Extensibility by Customers Balanced book by any dimension

Parallel sets of books

Fast Close

TCO reduction

Intl. Accounting Standards

Compliance & Transparency

CoGS

Ledger

Profit Center Ledger

Management andSegment reporting

Special Ledger

Multi-dimensional,Customer-defined

Industry Specific Ledgers

B/S by Grant,Fund, Title

GL in SAP ERP 6.0 The Unified Approach


33/45

SAP 2007 / Page 33

Cons.

Preparation

EC-PCA

GL inSAP ERP 6.0

FI-SL CO-OM

CO-PACoGSLedger

Reconc.Ledger


Document Online Split:Balanced book for any dimension

Profit CenterDetermination

CurrencyTranslation

Zero balanceDerivation

Agenda


34/45

SAP 2007 / Page 34




4. Customers

5. Summary

New GL Customers Overview


35/45

SAP 2007 / Page 35

ERP 2004 / 2005

More than 1000 live customers*

25 successful migration projects*

Further migrations projects have been started

27 reference customers*

* October 2007

New GL Customers References (1)


36/45

SAP 2007 / Page 36

Reference Customer Industry Country

AIR FRANCE Cargo Services France

J M AB Engineering Sweden

AIR LIQUIDE Chemicals France

InfraServ Chemicals Germany

bebit Engineering Germany

CorpTech Public Sector Australia

HDI Insurance Austria

PETRON Corporation Oil & Gas Philippines

Oy Karl Fazer Ab Consumer Products Finland

CREDIT LOGEMENT Banking France



37/45

SAP 2007 / Page 37


BOC Gases America Chemicals USA

Bridgestone Americas Automotive USA

State of California Public Sector USA

The Home Depot Retail USA

Forest City Enterprises Inc Professional Services USA

Flir Systems, Inc. Aerospace & Defense USA

WorldSpace Inc Telecommunications USA

Electro Scientific Industries Industrial Machinery USA

Newport Corporation Aerospace & Defense USA

Mnchener Rck Insurance Germany



38/45

SAP 2007 / Page 38


Nordenia Forest Products Malaysia

BBS Bankenes Banking Norway

MEAG MUNICH ERGO Insurance Germany

Centrica Plc Utilities & Waste Great Britain

CITIC Industrial Bank Banking China

Higher Education Press Media China

Rio Tinto Aluminium Primary Metal & Mining Australia

Success at our Customers


39/45

SAP 2007 / Page 39

We generate a balance sheet and profit and loss statement atthe profit center/store level. Online document splitting enablesa very high degree of automation.

Ms. Byner-Bendig, Common Template

Accounting FI/CO, Metro Group

With the New GL in SAP ERP 6.0 we are able to master allrequirements for parallel valuation (Local GAAP and US-GAAP)

Dieter Bankosegger,Head of the Financial Accounting Department

With New GL we have the ability to differentiate each posting byfund and with this new GL functionality we are benefiting from moreaccurate account assignmentprocedures re-designed to support ourcomplex Fund Accounting for DWR

Mary Smith, project manager, Department of WaterResources - State of California

Migration to New GL - Success at our Customers


40/45

SAP 2007 / Page 40

The functionality of the migration programs and thestructured process reduced the costs and the risk in themigration project.

Reinhold Scherer, Manager Subdivision

Accounting, Ameco, China

SAPs general ledger migration team provided optimumsupport for the implementation of the new general ledger.

Runar Kletvang, BBS(Banking and Business Solutions), Norway

SAP's support during our rollout planning, testing and duringour go-live weekend, was an important factor in our success.

Rob Sargeson, Chief Information OfficerThomson Legal and Regulatory, Thomson, USA

Agenda


41/45

SAP 2007 / Page 41




4. Customers

5. Summary

Benefits of the General Ledger in SAP ERP 6.0


42/45

SAP 2007 / Page 42

The General Ledger supports a Unified Financial and Management Accounting.

It provides Extensibility and Flexibility to add industry or customer specific dimensions tostandard accounting.

There is powerful functionality for Balanced Books by Any Dimension which is importantfor segment and management reporting, and in many industries.

The General Ledger supports Parallel Accounting by Using Parallel Ledgersor Parallel Accounts.

There is a strong support ofFast Close since many period-end activities are no longerrequired.

The General Ledger provides perfect transparency and reduces the risk of non-compliance thus supporting Corporate Governance.

Low TCO for implementing and running the General Ledger.

Further Information


43/45

SAP 2007 / Page 43

New G/L and migration to new G/L is covered in greater depth in the following SAP

training courses:

AC210: New General Ledger Accounting

AC212: Migration to New General Ledger Accounting

www.sap.com/germany/services/education/

Updated Information about the New G/L from Solution Management

www.service.sap.com/GL
http://www.sap.com/germany/services/education/http://www.service.sap.com/GLhttp://www.service.sap.com/GLhttp://www.sap.com/germany/services/education/


44/45

SAP 2007 / Page 44

Thank you!

Questions?


45/45

new gl overview

Documents