The New General Ledger in my SAP ERP

By Teja Babu

Overview

Introduction Ledger DefinitionDocument SplittingIntegrationPeriodic ProcessingParallel AccountingReporting

Legal & Mgnt RequirementsSegment ReportingReal Time Integration CO = FIExtensibility to CustomerBalanced books for any dimensionParallel sets of BooksFast closeTCO reduction

Activating the New General ledger Accounting

Ledger DefinitionLeading Ledger:Leading ledger is the main set of books maintained with the variants like posting period variant, fiscal year variant and local currency maintained for the company code.There will be only one leading ledger for each company code The postings from leading ledger will flow on to CO in the standard system.Non-Leading LedgerThe non-leading ledger can be assigned with alternative currency and/or with other fiscal year variants that differ from Leading ledger

Ledger Definition

Assignment of Scenarios to Ledgers

Document Splitting

The document splitting functionality is available in the SAP system from Release SAP ERP Central Component 5.0 and later to create Segment Financial StatementsDocument splitting allows to bifurcate (Split) the information or the value to the desired scenarios with out changing the operative process( Document entry)It ensure that not only the document itself is balanced internally ( Company code wise) but also additional dimensions such as business area, profit center and SegmentSplitting is activated at client level

Activating Document Splitting and InheritanceInheritance means that when you create a customer invoice from a revenue line, for example, the entities (such as business area or segment) are projected (inherited) to the customer and tax lines in the general ledger view

Document Splitting Field Mandatory checked for Segment

Document Splitting

Document Splitting Example Vendor Invoice (as you can see below, the individual posting components always balance to zero

Real-Time Integration COFI(Real-time) integration from Financial Accounting (FI) to Controlling (CO) has been available in the SAP system for some time now.Merely the opposite direction, from CO to FI, was not previously possible in real time. This involves, for example, changes to characteristics in the following processes/transaction such as:Periodic allocations (assessments, distribution, transfer posting)Manual transfer postings to COActivity allocations

CO Reconciliation with Financial Accounting always required the reconciliation ledger, which was maintained in cost element accounting.Periodic program runs carried out summary adjustment/reconciliation postings for each cost element/expense account (Transaction code KALC)Transaction KALC is no longer available (by default) after the new general ledger is activated .The segment characteristics could not be reconciled with transaction KALC

Parallel Accounting

Parallel Accounting

Parallel Accounting

Parallel Accounting

Parallel AccountingPosting period 4 for the fiscal year variant K4

Parallel AccountingPosting period 1 for the fiscal year variant V3 for Ledger L7

Reporting De activation of Classical LedgerComparing of different ledgers - Financial accounting (New) / Financial Accounting Basic Settings (New) / Tools / Compare LedgersDrill down report TC FGI0All the S_PL0 are new report with more input parameters like Profit center, segment and Ledger etc.

Closing Operations Reduction in TCOUsing the new general ledger can save you from many periodic closing and reconciliation operations, because the system has already performed then in real time. This leads to a significant improvement in Total Cost of Ownership (TCO).

Examples of eliminated closing activitiesMaintenance and use of reconciliation ledgerBalance Sheet adjustmentProfit and Loss adjustmentMaintenance and use of the various FI-SL ledgersMany tasks are also eliminated because technical support for segment reporting is available.

Any Questions??

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