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Basics of New General ledger
* Screenshots and all other information are based on mySAP ECC 5.0 version. The purpose of this ppt is to give a basic understanding and the configuration settings required for new GL implementation.
Contents • Why use the New GL?? • Settings for new GL • New GL.An User’s Perspective • Reporting .
Leading & Non leading ledger Profit Centre integrated with GL Segment defined as an enterprise element Document split functionality * Reporting as per cost of sales Functional areas included accounting .Why use the New GL?? Business Requirement * Reporting as per different GAAP * Unified management & legal reporting * Segmental reporting as per US GAAP * Financial statement below company code level New GL functionality Concept of multiple ledgers.
Cross company code cost accounting. • Controlling . Area. •Profit Centers -For internal management reporting as an independent responsibility centre “Companies with in the company”.Settings for New GL-(i) • Organizational structure is created to map the business structure of the organization in SAP. • Company Code. • Chart of Accounts. Compliance with local requirement as per the law of the land.Legal entity for external reporting.Grouping of all GL accounts used.To provide a closed environment for cost accounting.
Based on local accounting principles => Assignment to alternate currencies & fiscal year variant that differ from that of leading ledger. or segment assets account for at least 10% of the assets of all segments .Based on the same accounting principle as that of consolidated financial statement. A representative ledger defined with in the ledger group determines the posting period for all the ledgers included in that ledger group. • Ledger group. segment income accounts for at least 10% of all segment income.Grouping of ledger created for the purpose of applying the function of accounting to all ledgers.Settings for new GL-(ii) • Leading Ledger. * Excerpt from IAS 14: … reporting is required for a business or geographical segment when the majority of its revenues stems from sales to external customers and segment revenues account for at least 10% of total internal and external revenues of all segments. • Non-leading Ledger. Integrated with all non-leading ledger & gets many of the parameters from the company code. Used for segment reporting. • Segments() FI account assignment object derived from the master data of Profit center.
Define the field to be updated in ledgers when it receives posting from other applications.Settings for new GL-(iii) • Functional areas. Some std scenarios are assigned to ledgers are • FIN_CONS. •Parallel Accounting (0L-Leading Ledger may use IFRS. Required for producing the financial statement as per cost of sales approach. • FIN_SEGM.For classifying the expenses of an organization by functions. • Scenarios. PC and etc. .Different accounting principle applied to different ledgers.Update of profit centre & partner PC field.Update of consolidation transaction type & trading partner field • FIN_PCA. Non leading ledger group uses local accounting principle).Update of segment.
• The standard document split method 0000000001( split of customer. vendor & tax) line items. • The system identifies relevant GL accounts for split as per the assigned item category in configuration. •Document split rules are decided based on the transaction. • “ Profit Centre may be used as Characteristic” for document split.Settings for new GL-(iv) • Document splitting.Line items are split along selected This ensures creation of financial statements at level below company code. . variant assigned to the document type in configuration.
The segment can be updated from BADI ‘s also (FAGL_DERIVE_SEGMENT). .Settings for New GL-(v) Segment •Segment is a FI account assignment object and is derived from profit centre master data. The corresponding segment is automatically updated for the relevant profit centers.
• Derive the segments. • Define the segments in configuration. analyze and display document segment in the new GL.SAP supports derivation of segment from profit centre master data. .Settings for New GL-(vi) Segment • To post. the following steps are required. • Assign the required scenario to relevant ledgers. • Maintain the field status variant of the required FI accounts.
Internationally recognized accounting standard such as IFRS are the need of the hour.Accounting in local view is no longer sufficient by itself in the globalised world of business partners. •Business reason. • In SAP system each client has one leading ledger & essentially more than one non leading ledger. • New GL lets you use different ledgers as per different accounting principle. .Settings for New GL-(vii) Parallel Financial reporting • Parallel financial accounting means that financial statements have to created in accordance with different accounting rules.
Settings for New GL-(viii) Parallel Financial reporting •The use of non leading ledger makes it possible to use a different fiscal year variant with in the same company code. Fiscal year variant for non leading ledger different from leading ledger . Fiscal year variant for leading ledger derived from Company Code . In earlier versions of SAP it was not possible to use different fiscal year with in the same company code. .
However. it is still not possible for depreciation areas to have fiscal year variants with different start and finish dates.. •SAP contends that this issue arises because of technical restrictions.In the New GL in Asset Accounting. you can assign a ledger group to this area for an inconsistent valuation. This is both technically possible and a desired function. whose ledger has different fiscal year variants to the valuation area in Asset Accounting. •Refer SAP Notes No. whereby the fiscal year variant infringes this restriction. If you try to assign a fiscal year variant to an area.844029 .Settings for New GL-(ix) Implications of using different fiscal year • In Asset accounting it is still not possible for depreciation areas to have fiscal year variants with different start & finish dates. • Possible solution. the system issues error message. the system issues error message AC 531. •If a fiscal year variant is assigned to a depreciation area with different start & finish dates.
Settings for New GL-(x) Cost of Sales Accounting • New GL has the ability to provide profit & loss statement of the organization based on cost of sales accounting principle. •For this. all the expenses incurred are allocated to functional areas in SAP system. .
New GL.Two views of any FI document possible in New GL..In the entry view a document contains the document line items originally entered or transferred from the original component.User perspective-(i) • Different views of a FI document . Entry View & Ledger View •Entry view. .
Additional line item created as a result of document split. Documents in the general ledger view always apply to a specific ledger. .New GL. a document contains the document line items originally entered or transferred from the original component and split line items generated by document splitting.User Perspective-(ii) • In the general ledger view.
• The new feature includes the ability to run the report for non leading ledgers. .New GL Reporting-(i) Reports in New GL • The standard RFBILA00( Financial Statements) is still available in New GL.
functional area etc. • By navigating through the drill down reporting (S_PL0_86000028) it is very easy to turn a company code report to a profit centre report. • The dynamic selection button ( ) on the report screen gives the flexibility to select additional entries such as profit centre.New GL Reporting-(ii) Reports in New GL • New GL has the ability to give the financial statement as per the requirement (either at company code level or organization level below it). .
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