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