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Product and Topic Expert
Product and Topic Expert
The objective of this blog is to provide general guidance/perspective in the initial Ledgers and the assignment of Accounting Principles for SAP S/4HANA Cloud, public edition (Public Cloud). In this blog I’m focused on a 3SL system using CBC.

How many ledgers do you need to enable in your system?

Key questions to answer before deciding how many ledgers are required:

  • Is your customer based on a single country?

  • Does your customer just need the local accounting principle to support legal requirements?

If all the previous questions are answered with a yes, most likely one ledger is required.

In the other hand, if not sure, then you should ask your customer the following questions:

  • Is your customer in multiple countries following different accounting principles?

  • Does your customer have plans to expand to other known countries in near future (3-5 years)?

  • Is the implementation for a subsidiary that is reporting to headquarters in a different Accounting Principle?

If the answer to any of these questions is yes, then most likely more than one ledger is needed.

Available Options

This table shows the 4 available options (details in help “Ledger Scenarios: Choosing the Right Combination for Your Business Needs” below):

Option Ledger Initial Assignment Scope Item(s)
1 0L Local Principle Accounting and Financial Close (‏J58‏) (https://rapid.sap.com/bp/scopeitems/J58) – It’s enabled by default
2 0L + 2L Local ledger + IFRS

J58 +

Accounting and Financial Close - Group Ledger IFRS (‏1GA‏) (https://rapid.sap.com/bp/scopeitems/1GA)
3 0L + 3L Local ledger + US GAAP

J58 +

Accounting and Financial Close - Group Ledger US GAAP (‏2VA‏) (https://rapid.sap.com/bp/scopeitems/2VA)
4 (for NEW customers provisioned with 2302 version or later) 0L + 2L + 3L Local ledger + IFRS + US GAAP J58 + 1GA + 2VA

Please consider that in all cases:

  • Leading ledger is ledger 0L

  • SAP Recommends assigning the Global Accounting principle to ledger 0L

  • One ledger must be local. This means that is empty in the Accounting Principle at the Ledger level and you must assign the local accounting principle at the Company Code level

  • The predictive ledger is equal to the Accounting Principle of the Leading ledger

  • All companies will be assigned to ledger 0L

  • In CBC Ledger 0L is the leading ledger and it’s not possible to change the leading ledger assignment


Please review the following links that provide detailed info you’ll need to make the decision of the number of ledgers:


I hope this information is useful. If it is, please press like so you let the community know.