“The SAP New G/L in Overview”

Dr. Guenter Dortmann W t Westernacher h Consulting C lti China Chi

Contents
Sh Short Westernacher W h Introduction I d i Key features of the new G/L Parallel Valuation – multiple ledger approach “Realtime” integration in Financial Accounting Enhanced Segment Reporting (document splitting) Major benefits of the new G/L Key decision points
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Contents Sh Short Westernacher W h Introduction I d i Key features of the new G/L Parallel Valuation – multiple ledger approach “Realtime” integration in Financial Accounting Enhanced Segment Reporting (document splitting) Major benefits of the new G/L Key decision points 5 5 .

FA Cost Center. etc. Order new G/L Improved Integration • Realtime R lti CO/FI i interface t f (scenarios) • • • Asset Accounting (incl. WBS element. PC.Key y features of the new G/L / • • Ledger approach (ledger groups) New transactions to post in particular ledgers New financial statement reports Parallel Valuation • FAGLFLEXT • Additional Fields • • Segment. AuC) Inventory Management M Consolidation • Customer Fields • Document Splitting • • • S t of Set f splitting litti methods th d and d rules l Online split of 6 follow up costs Zero-Balancing functionality .

Totals Table FAGLFLEXT One look at the database table makes the p primary y standard extension of the data structure visible immediately: 7 .

Single Source of Information Business Requirement Parallel Accounting FAGLFLEXT Ledger Group Cost of Sales Accounting Functional Area Segment Balanced Reporting (Full Balance Sheet and P&L) Business Area Profit Center Consolidation Trading Partner 8 8 .FAGLFLEXT .

Scenarios What is a scenario? A scenario defines which fields are updated in the ledgers (in the general ledger view) during a posting (from other application components) 9 .

10 . AR. taxes) General ledger view: View of how a dosument (only) appears in the general ledger.Entry view and G/L view Definition: Entry view: View of how a document also appears in the subledger views / subledgers (AP. AA.

New FI drill drill-down down reporting Account Balances Financial Statement S_PLO_86000028 (a/a) (new) FGI3 (own reports) GL Vendor Customer FD10N Asset AW01N (Individual) S_ALR_87011963 ……… S_ALR_87011970 S_PLO_86000030 FK10N FAGLB03 (new) Drill-Down Line Items/Documents GL Vendor Customer FBL5N FB03 Asset AB03 FAGLL03 (new) FBL1N FBL3N FB03 Drill-Down FB03 11 11 .

Contents Sh Short Westernacher W h Introduction I d i Key features of the new G/L Parallel Valuation – multiple ledger approach “Realtime” integration in Financial Accounting Enhanced Segment Reporting (document splitting) Major benefits of the new G/L Key decision points 12 12 .

Multiple ledger approach 0L IFRS 1… N1 4… 5… 1… US GAAP Leading Ledger using •Local Currency (10). •Fiscal Year Variant •Posting Variant of a Company Code New transactions Available to capture postings in particular ledgers only N2 4… 5… 1… LOCAL New drill-down reports to ensure financial statements for particular ledgers 4 4… 5 5… 13 13 .

14 14 . during AuC settlement. others)  When CO writes back into FI (i. WIP settlement or due to CO cross-dimension cycles according to predefined scenarios) all ledgers are updated simultaneously. WBS elements elements.  Subsidiary ledgers (AP. Example: In addition to your leading ledger 0L – which is the “main” general ledger of your Company Code and might reflect IFRS (?) you might have two non-leading ledgers (N1 and N2) reflecting local Chinese GAAP and US GAAP. The system creates one document for each ledger. orders. orders others).Multiple ledger approach  SAP new G/L allows y you to manage g p parallel ledgers g according g to different accounting g principles simultaneously.e. AR and AA) always update all ledgers (Blank Ledger Approach).  The leading ledger 0L is the only ledger posting “through” into CO (!) to ensure that the cost is updated on CO objects (Cost Centers Centers.

Contents Sh Short Westernacher W h Introduction I d i Key features of the new G/L Parallel Valuation – multiple ledger approach “Realtime” integration in Financial Accounting Enhanced Segment Reporting (document splitting) Major benefits of the new G/L Key decision points 15 15 .

P&L “Online“ Online Reconciliation Profit &Loss (by Period) Rent 200 100 Sales Rev 400 COS OVH R&D Offi Supply Office S l 300 Insurance Profit &Loss (by CoS) 300 100 -30 +25 Sales Rev 400 25 200 +30 30 -25 FI 30 Cost Center 40 200 100 CO Online Update on all dimensions according to predefined scenarios!  No transaction KALC! 40 300 25 Production 16 FI Posting CO Primary Cost Reposting (KB11N) CO Primary Cost Distribution (KSV5) .

Integration of subsidiary ledgers 0L Assets FI-AA Balance sheet 2… N1 N2 Vendors Debtors FI-AR „Blank“ Ledger Group as a common valuation l ti approach h 4… 5… FI-AP CO Profit &Loss 6… 7… 17 17 .

EUR Asset class 100 000 00 EUR 100.000.00.700.00106.00 Input tax (10%) 300.000.00 EUR 3% Cash discount: In many countries cash discount reduces the acquisition and production costs of the asset.0018 "Outgoing Payment with adjustment of fixed asset" Crcy EUR EUR EUR EUR Tax IS IS CC SERV PC ADMIN .00 Input tax (10%) 10.000.Integration of Asset Accounting Online posting of Follow-up costs Document entry view Comp Code Line 0003 1 2 3 PK 31 70 40 "Purchase of an Asset" Tax IS IS IS CC SERV PC ADMIN Account Amount Crcy Vendor 110.6C: Usage of report SAPF181 at end of month to adjust the acquisition and production costs ERP 6 6. R/3 4.00 Asset class 3.00Vendor 110.700.000.000.0: 0: Usage of document splitting (method 0000000012) & activation on cash discounts on assets Document entry view Comp Code Line 0003 1 2 3 4 PK 50 75 25 50 Account Amount Bank 106.

dep.000 EUR (1) (1) AA 40 40 41 IFRS (0L) (3) Local (N1) Transaction Ledger Group 0L N1 Acquisition Depreciation Depr.000 EUR 20 000 EUR 20.000 -4.400 Retirement Clearing Gain from Loss from Asset Asset Asset Retirement Retirement Retirement 17.800 17.000 4.000 22.400 AA recon -20.000 19 -2.Area 40 Local D Depr.000 Acc dep. dep -2.000 EUR 2.Area 01 IFRS Depr. 2. 5 years AA recon 20.000 -22. A Area 41 (40 minus 01) Depr. Depr par straightline.par.Integration of Asset Accounting „Blank“ Ledger G Group as a common valuation approach 01 (1) IFRS Local Local 40-01 (3) 20.800 -200 200 200 -200 N1 2. 10 years straightline. Acc.000 2.400 0 400 -400 19 .400 -2.000 2.000 Acc dep Acc.

 Pls. Pl note t that th t only l Depreciation D i ti A Area 01 is i updating d ti CO (!) 20 20 . (eg 01. By doing so valuation differences b t between the th GAAPs GAAP will ill b be portrayed t di in th the Depreciation D i ti A Areas. ti depreciation d i ti method th d etc.  The Book Depreciation Area 01 is linked and posting to the 0L (and will therefore update all ledgers). 0L. Consequently the system needs a Delta Depreciation Area (41) to track the difference between IFRS (01) and Local GAAP (40) and then only to post this differences into the ledger group N1.Integration of Asset Accounting  Asset Accounting is based on different Depreciation Areas (eg.) are specified based on which the system determines the depreciation value and will posting it to the assigned Ledger Groups.) reflecting accounting principles (eg.  F For each h Depreciation D i ti A Area the th d depreciation i ti t terms ( (uselife lif time. Local GAAP). IFRS. 01 40) which are assigned to different ledger groups (eg. N1 etc.

Contents Sh Short Westernacher W h Introduction I d i Key features of the new G/L Parallel Valuation – multiple ledger approach “Realtime” integration in Financial Accounting Enhanced Segment Reporting (document splitting) Major benefits of the new G/L Key decision points 21 21 .

Segment Reporting (Derivation Logic) Profit Center (Derivation) Each Cost Center and WBS element links to a Profit Center (and a Functional Area) ADMIN Type yp 1 Type 2 ADM Type 1 Type 2 Each Profit Centre links to a Segment Segment g (Derivation) ( ) Company CoS OVH Cost Ctr (Manual Input) Projects (Manual Input) 22 R&D Functional Area (=P&L position) .

Segment Reporting (Derivation Logic) Profit Center ( (Derivation) ) ADMIN LOB 1 Cost Center (Manual Input) LOB 2 ADMIN TRUCK CMP_TR Segment g (Derivation) ( ) 9850 BIKES Each Profit Centre links to a Segment RDHYBR Each Cost Center “links” to a Profit Center 23 Assignment Derivation .

24 . Document is enhanced with the corresponding balance sheet items automatically.Segment g Reporting p g (Document ( Splitting) p g) Document Splitting has split the vendor payable and the GST li b line based d on a Splitting Method and Splitting Rules.

additional “dummy” or clearing items are created in order to ensure balanced reporting for this dimension. The offset postings hit a preconfigured fi d default Profit Center/Segment clearing account.Segment g Reporting p g (Document ( Splitting) p g) In cross Segment situations . 25 .such as balance sheet transfer postings .

Why are allocation needed in FI ? Because the new general ledger now lets you model profit center accounting as well. etc. for example.) from one profit center (such as the dummy PC) to another at the end of a period. Profit center 1 Profit center 9999 41XXXX 417XXX 42000 10. to distribute „overhead costs“ (cafeteria expenses.Allocations in FI You can now use FI (no longer only CO) in the ERP 6.500 26 Profit center 2 Profit center 3 Profit center 4 . 8.000 35. electricity.000 . water.0 solution to perform allocations (assessment and distribution).

Major Benefits of the new G/L • Integrated statutory and management reporting p g BS and P&L on multiple dimensions Enhanced Financial Reporting • Accounting Principles and Parallel Accounting Accelerated Closing • • • Accounting g principles p p • IFRS. local Closing cockpit Integration of Asset Accounting “Elemination” of CO reconciliation ledger Consolidation • Integration of Asset Accounting • Integration of current assets • New N G/L approach h • Special ledger • Account model new G/L • • Cost of Sales Accounting • Functional area as a standard field in FAGLFLEXT • Integration CO and FI 27 • “realtime” P&L reconciliation . US GAAP.

AuC) Inventory y Management g Consolidation new G/L • • • • Customer Fields • Document Splitting • Zero Balancing in which dimensions? (S (Segment? ? Profit P fi C Center? ? Else?) El ?) • • Relevant Fields 28 must be ready for input Design must be complete .Key decision points of the new G/L • • Leading g (statutory) ( y) Ledger? g Additional Ledgers for Management Reporting? Multiple Ledger Approach FAGLFLEXT • Improved Integration • Additional Fields • • Segment. etc. Order Which dimensions update FI totals table? Asset Accounting (incl. FA Cost Center. PC. WBS element.

2009 29 Author. Company .Thank you… 22 May.

Appendix 30 .

S Bank/Cash100 Capitalisation versions linked to d depreciation i ti areas Definition of percentage rates per capitalisation version differentiated by cost element CO 200 300 100 Cost Center 250 Production 31 FI Posting CO Primary Cost Reposting (KB11N) CO Settlement (CJ88) . Oth.Integration of Asset Accounting N2 N2 N1 0L Leading g Ledger g (0L) updates CO N1 0L FI IFRS Wages Material 200 300 AuC Current IFRS 650 300 250 Oth Serv.

Westernacher China – 4 Main focus areas Westernacher China Business Localization For China SAP ERP And R ll t Rollout projects Process Engineering Finance HCM Logistics SAP EWM SPM 1st Tier Partner of SAP for EWM and SPM in China 32 .

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