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

Balanced books
for any dimension

Legal
reporting

GL in
mySAP ERP
Compliance

Parallel
accounting

Fast close

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

IASdistinguishes between business and geographic segments.
Abusiness segment represents a partial activity of the company that
delivers a product or a service with risks and revenues that differs from
those of other business segments.
Ageographic segment informs about risks and revenues that differs
fromother geographic segments in terms of economic, political ... etc
reasons.

According to US-GAAPa segment is a part of the company which

leads to expenses and revenues and which underlies to its own
profitability and allocation of resources.

IAS and US-GAAP: Asegment has to be reported if external revenues

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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