Basic Challenges in migrating to New GL

Geetha Balakrishnan

Cogent IBS Inc. 2009. All Rights reserved.

Session Summary
o! The purpose of this session is to give an overview of New GL and

also to give basic steps in the migration process

o! This session will also focus on the challenges you may have to face

during the migration process

Cogent IBS Inc. 2009. All Rights reserved.

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What we will cover

" ! Overview of General Ledger " ! Migration to New General Ledger " ! Role of Cogent " ! Case Study with our current implementation " ! Challenges Faced " ! Tips and Tricks " ! Pitfalls to avoid " ! Wrap Up " ! Session Takeaways
Cogent IBS Inc. 2009. All Rights reserved.

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General Ledger
What is General Ledger ?
o! The general ledger is the core of any companys financial records.

These constitute the center books of companys system, and every transaction flows through the general ledger. These records remain as a permanent track of the history of all financial transactions since day one of the life of the company
o! The two primary financial documents of any company are their

balance sheet and the profit and loss statement, and both of these are drawn directly from the companys general ledger

Cogent IBS Inc. 2009. All Rights reserved.

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IFRS
Why New General Ledger ?
o! US Sec has proposed IFRS cutover from local GAAP to IFRS is

2014
o! IFRS stands for International Financial Accounting Standards o! International standard for financial accounting and reporting

Cogent IBS Inc. 2009. All Rights reserved.

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Paths to IFRS
o! SAP Recommended Approaches to achieve IFRS
!! Account based !! New GL Parallel Ledger !! Business Objects !! International standard for financial accounting and reporting

Cogent IBS Inc. 2009. All Rights reserved.

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Paths to IFRS
o! Account Based
!! Easiest to implement !! Can lead to un-manageable COA in SAP General Ledger !! Maintenance intensive !! Reporting changes !! Longer closing processes

Cogent IBS Inc. 2009. All Rights reserved.

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Paths to IFRS
o! New GL Parallel Ledger
!! Transparent Approach !! Independent set of books !! Provides IFRS and local accounting standard

!! Business Object
!! Financial consolidation and Reporting Solutions !! Consolidation level

Cogent IBS Inc. 2009. All Rights reserved.

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Features of New GL
o! Segment reporting !! The report of income statement and balance sheet to be reported by segment is a legal requirement. The big change in segment reporting is that there is now a separate field in profit center master record. o! Document Splitting !! It allows full financial statement to be produced at a level lower than the company code. Also line items can be split by profit center, segments, functional areas, commitments items, funds, funds program and grants. Separate activation is required o! Parallel Ledgers !! With the globalization of many organization there is an increase requirement to produce parallel sets of financial statements
Cogent IBS Inc. 2009. All Rights reserved.

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Advantages of New GL
o! Faster Period End Closing o! Real time posting to CO to FI no longer at period end o! Legal and Mgt. reporting are unified in one ledger o! Higher ROI on your investment o! Balanced books by any dimension o! TCP Reduction o! Transparency for drilldown reporting o! Legal Entity Reporting
Cogent IBS Inc. 2009. All Rights reserved.

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About Cogent IBS, Inc. Cogent Integrated Business Solutions, Inc. is an SAP focused consulting services company based out of Bingham Farms, Michigan, USA. CogSAP09 is a Cogent IBS, Inc. professional development event conducted exclusively for its employees.

No part of this presentation may be published or transmitted in any form without the express permission of Cogent IBS, Inc.

Cogent IBS Inc. 2009. All Rights reserved.

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