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Leading and Non- Leading Ledger

Former Member
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Hi,

As per my knowledge non- leading ledger are defined parallely to the leading ledger for closing the gaps regarding fiscal year and currency.

Let's take an example: There are 3 company codes A, B and c, A is the main company which is registerd under the co's act of 1956, ( Headquarters is inIndia), Now for New GL Concept we will maintain the leadig ledger for comany code "A". Company code Ba nd c are situated in US and australia - So we maintain non- leading ledger for comnay code B and C.

What are the additional components that we can assign to the non- leading ledger account.Is the non leading ledger assigned to the comanycode, if so where,

Is the leading ledger maintained at the client level?per one production cleint we can maintain one ledger ledger.

I am verymuch getting confused abouth the whole ECC concept.. please help me in understanding.

Thanks

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Hi Soumya,

Initially youy were right but clarify the concept. Company code B and C will have leading ledgers and these both company codes will maintain country chart of accounts so that your consolidated balance sheet can be derived. You can not club two ledgers for report creation.

To understand Leading and Non-leading concept better. Suppose, you have a company code in India 1000. Your company is commited to meet IFRS aliong with the indian standards.

So company code 1000 will be posted its indian operation data in to Leading ledger because it will require more information to report and meet local requirement.

To meet Internation Financial Reporting Standard you will have to create Non-Leading ledger where differences will be posted. All the entries posted into leading ledger will be flowed to non leading ledger also so document which requires alteration in amount so you can post this diifference to Non leading ledger through FB50L.

Regards,

Chintan Joshi..

Former Member
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Hi Chintan,

Thank you for answering,

I need your help in getting clarity regarding the concept.

Initially youy were right but clarify the concept. Company code B and C will have leading ledgers and these both company codes will maintain country chart of accounts so that your consolidated balance sheet can be derived. You can not club two ledgers for report creation.

My understanding is non- leading ledgers is maintained if there is a changes in the currency or the fiscal year varieant considering bis in US and C is in Australia, so currency iffer and fiscal year will differ, so maintenance of non- leading ledgers will become mandatory, then why companycode b an c are maintaining leading ledgers.

Assigning Country chart of accouts,we use to do it 4.7 to get the consolidated report.

Thanks

Former Member
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Thanks for info.

Answers (2)

Answers (2)

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You use only one Lead ledger (0L) supplied by SAP. Per client you can have only Leading ledger.

You can create multiple non lead ledgers.

In IMG activity, at the node "Define and Activate Non-Leading Ledgers" you make a link between non lead ledger and company code. Here you assign the currency and the fiscal year variant for the non lead ledger.

Also you will have to do customizing for maintaining the document numbers in entry view and document numbers in general view.

Regards,

Sameer

Former Member
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Hi,

Leading ledger is a base ledger which updates the cost center and consolidation

You can define only one ledger as the leading ledger u2013 SAP provides the leading ledger u201C0Lu201D.

The leading ledger is integrated with all subsidiary ledgers.Only the values from the leading ledger are sent to CO

The leading area in Asset Accounting (depreciation area 01) must be posted to the leading ledger Leading ledger uses the (additional) local currencies assigned to the company code

Leading ledger uses the GL Total Table: FAGLFLEXT

Non-leading ledgers are activated by company code

You can define additional currencies that deviate from those used by the leading ledger

The currency of the leading ledger is always used as the first currency.

As a second and third currency of a non-leading ledger, you may only use currency types that you have already assigned to the relevant company code for the leading ledger

You can define a fiscal year variant that differs from the leading ledger.

If you donu2019t specify a FYV, the FYV of the company code is automatically used

You can also define a posting period variant that differs from the leading ledger

Separate document types and number ranges can be defined for non-leading ledgers by users, to ensure continuity in ledger numbering

non leading ledger updates the profit center, segment,

The non-leading ledgers are used as parallel ledger together with the leading ledger. This can be used to apply different accounting standards, such as IAS/IFRS or US-GAAP

Regards,

Krishna