This action might not be possible to undo. Are you sure you want to continue?
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 .
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.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 .
Compliance with local requirement as per the law of the land. • Company Code. • Controlling . Cross company code cost accounting.Legal entity for external reporting. Area.To provide a closed environment for cost accounting. •Profit Centers -For internal management reporting as an independent responsibility centre “Companies with in the company”.Grouping of all GL accounts used.Settings for New GL-(i) • Organizational structure is created to map the business structure of the organization in SAP. • Chart of Accounts.
Settings for new GL-(ii) • Leading Ledger. A representative ledger defined with in the ledger group determines the posting period for all the ledgers included in that ledger group. • Non-leading Ledger.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 . segment income accounts for at least 10% of all segment income. * 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. Used for segment reporting.Based on the same accounting principle as that of consolidated financial statement.Grouping of ledger created for the purpose of applying the function of accounting to all ledgers. Integrated with all non-leading ledger & gets many of the parameters from the company code. • Segments() FI account assignment object derived from the master data of Profit center. • Ledger group.
Define the field to be updated in ledgers when it receives posting from other applications.Settings for new GL-(iii) • Functional areas. Required for producing the financial statement as per cost of sales approach.Update of consolidation transaction type & trading partner field • FIN_PCA.Different accounting principle applied to different ledgers. PC and etc. • Scenarios. . Some std scenarios are assigned to ledgers are • FIN_CONS. •Parallel Accounting (0L-Leading Ledger may use IFRS.Update of profit centre & partner PC field.Update of segment.For classifying the expenses of an organization by functions. • FIN_SEGM. Non leading ledger group uses local accounting principle).
vendor & tax) line items. variant assigned to the document type in configuration.Settings for new GL-(iv) • Document splitting. •Document split rules are decided based on the transaction. • The system identifies relevant GL accounts for split as per the assigned item category in configuration. • The standard document split method 0000000001( split of customer.Line items are split along selected This ensures creation of financial statements at level below company code. • “ Profit Centre may be used as Characteristic” for document split. .
Settings for New GL-(v) Segment •Segment is a FI account assignment object and is derived from profit centre master data. The segment can be updated from BADI ‘s also (FAGL_DERIVE_SEGMENT). . The corresponding segment is automatically updated for the relevant profit centers.
• Derive the segments. analyze and display document segment in the new GL.Settings for New GL-(vi) Segment • To post. . • Assign the required scenario to relevant ledgers. • Maintain the field status variant of the required FI accounts. • Define the segments in configuration.SAP supports derivation of segment from profit centre master data. the following steps are required.
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. • New GL lets you use different ledgers as per different accounting principle. • In SAP system each client has one leading ledger & essentially more than one non leading ledger.Settings for New GL-(vii) Parallel Financial reporting • Parallel financial accounting means that financial statements have to created in accordance with different accounting rules. . •Business reason.
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.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 .
However. •If a fiscal year variant is assigned to a depreciation area with different start & finish dates. •SAP contends that this issue arises because of technical restrictions.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. you can assign a ledger group to this area for an inconsistent valuation. •Refer SAP Notes No.In the New GL in Asset Accounting. whereby the fiscal year variant infringes this restriction. whose ledger has different fiscal year variants to the valuation area in Asset Accounting. This is both technically possible and a desired function.844029 . • Possible solution.. If you try to assign a fiscal year variant to an area. the system issues error message. it is still not possible for depreciation areas to have fiscal year variants with different start and finish dates. the system issues error message AC 531.
. all the expenses incurred are allocated to functional areas in SAP system. •For this.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.
.User perspective-(i) • Different views of a FI document .In the entry view a document contains the document line items originally entered or transferred from the original component. Entry View & Ledger View •Entry view.New GL.Two views of any FI document possible in New GL. .
User Perspective-(ii) • In the general ledger view. . Documents in the general ledger view always apply to a specific ledger. a document contains the document line items originally entered or transferred from the original component and split line items generated by document splitting.New GL. Additional line item created as a result of document split.
• 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. .
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). . • 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. functional area etc.