Think Tree Technologies, Inc.

New General Ledger In mySAP ERP

New General Ledger

The New G/L enhances the standard functionality available in the Classic G/L. It incorporates a more unified model of the data and provides a multitude of business benefits to the customer. Chapter Objectives: Understand the new functionality supported by New G/L Understand business advantages of New G/L Activate New G/L functionality Create and use segments

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Segment reporting

Management reporting Extensibility

Legal reporting

Balanced books for any dimension

GL in mySAP ERP
Compliance

Parallel accounting

Transparency TCO reduction

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The New GL vs. The Classic GL (1)

Source: SAP.com

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The New GL vs. The Classic GL (2)

Source: SAP.com

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New Functionality in New General Ledger Accounting (1)

The New General Ledger Accounting can be implemented in place of the classic General Ledger Accounting The New General Ledger Accounting holds most functionality currently within the classic General Ledger Accounting along with: Unified Legal and Management Reporting Most functions delivered with PCA are now integrated into the New GL Allocations originating in the CO module now update the New General Ledger in real-time (replaces Reconciliation Ledger)

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New Functionality (2)

Balanced Books by Any Dimension in Real-time Segment reports can be generated (e.g. for US GAAP reporting) with the extension of the Profit Center master record to include the Segment Cost of Sales accounting supported by inclusion of Functional Area dimension Industry-specific dimensions included (e.g. Fund, Grants for Public Sector) Industry Templates available in ERP 2005 Coding block can be extended to include Customer fields as new dimensions. Eg. Region. Parallel Accounting Supports posting to parallel accounts or parallel ledgers to satisfy requirements of multiple valuation methods e.g. local GAAP, group GAAP, taxes etc.

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Some Issues in New G/L

When will the GL arrive? Is it still possible to use the old GL? Can we use both? Does everything look different in the new GL? How can we migrate from the old to the new GL?

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Using the New G/L

For new installations of ECC5, the New G/L is activated by default For existing SAP customers, the New G/L is optional. During an upgrade, the Classic G/L is activated initially. Existing customers can migrate to the New G/L after the upgrade.

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Activating New G/L

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Impact of Activating the New GL (1)

Activation is done in configuration after which: In the SAP reference IMG, the Financial Accounting menu is replaced with the Financial Accounting (New) menu The tables of the New GL are activated posting data is written to them Note that tables of the Classic GL (GLT0) continue to be updated by default Allows for reconciliation of posting results between both sets of tables during implementation to ensure that the New GL is working properly Once this has been validated, the Classic GL can be deactivated
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Impact of Activating New G/L (2)

New transactions are inserted into the application menu Certain Classic GL functions are no longer available for use (e.g. SAPF180, SAPF181) The ledger group appears in various transactions (e.g. document entry, reporting selection criterion)

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New G/L Menu Paths

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Leading Ledger
The Leading Ledger is the principal ledger in New G/L It used the Fiscal Year Variant and Posting Period Variant that are assigned to the company code It manages the local currencies that are assigned to the company code Only values from the Leading Ledger are posted to CO in standard system

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Scenario Definition

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Entry View & G/L View (1)

An Accounting Document has 2 possible views The Entry View The General Ledger View The Entry View will differ from the General Ledger View depending on the assignment of Scenarios

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Entry View & G/L View (2)

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Entry View & G/L View (3)

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Segments in New G/L

The Segment field is a standard account assignment object available in mySAP ERP It can be used for reporting analysis below the Company Code level (Segment Reporting) Segment reporting gives a detailed look at the different activity areas of a company, such as: Business divisions Products Markets Previously used account assignment objects for this purpose were: Business Area Profit Center Profitability Segment
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Segment reporting aims:

to give detailed insight into different business activities of a diversified company to offer information about the general environment in order to better understand the economical performance better forecast the potential of revenue and financial back-up better anticipate risks and opportunities and more... of the respective company.

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Segmental Reporting Requirements

IA distinguishes between business and geographic segments. S
Abusiness segm represents a partial activity of the com ent pany that delivers a product or a service with risks and revenues that differs from those of other business segm ents. s Ageographic segm inform about risks and revenues that differs ent fromother geographic segm ents in term of econom political ... etc s ic, reasons.

A ccording to US-GAA a segm is a part of the com P ent pany which leads to expenses and revenues and which underlies to its own profitability and allocation of resources.

IA and US-GAA Asegm has to be reported if external revenues S P: ent achieve 10%of the total revenues.

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Segment Reporting/Profit Center Accounting Integration (1)

Once the New General Ledger is activated, a new field appears in the Profit Center master record: the Segment

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Segment Reporting/Profit Center Accounting Integration (2)

Segments are defined in the IMG as part of the Enterprise Structure One possible use: support GAAP business segment reporting An FI account assignment object that cannot be posted to directly, it can be derived either from its Profit Center association or from a Business Add In Possible to configure a default constant value when the profit center/segment is not known at the time of posting Possible to run FI balance sheets at either the segment or the Profit Center level at any point in time (due to Document Splitting and COFI Real-time integration functionality described elsewhere in this presentation) Result: Satisfies requirements for both financial segment reporting and management responsibility accounting

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Segment/Management Reporting GL Account Balance Display

SAP delivers a new GL account display transaction (FAGLB03) that includes these new dimensions as selection criteria:

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Classic GL Balance Sheet in the New GL

The classic GL balance sheet has been modified to accommodate reporting by profit center/segment and functional area (for COS accounting):

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Drilldown Reporting in the New GL

SAP also delivers a drilldown report that can be used to view these objects:

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Segment/Management Reporting Customer Fields

Within the New GL it is possible to extend the SAP-delivered coding block to include customer-defined fields (e.g. Region to support geographic segment reporting) These fields, once defined in configuration and assigned to ledgers, become FI account assignment objects However, they cannot be posted to directly in other application components (Logistics, Controlling) need to define automatic derivation rules Similar to Segments, Profit Centers and Functional Areas, it is possible to run FI financial statements against values within this dimension

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Chapter Summary
Activating new G/L Leading Ledger Scenario Entry View General Ledger View Segments

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