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New General Ledger

Former Member
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Hi...We are about to migrate from our R/3 4.6C to ECC6 in the coming months. However, we do not know whether to migrate also to the New GL. So far, we are happy with our old classic GL. Are we going to continue to use our old classic GL or also better migrate to new GL....We do not know what are the benefits of shifting to new GL & how long the project will it take to migrate from old to new GL.

Appreciate your advice...thanks

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Answers (4)

Answers (4)

Former Member
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Hi Mark..thanks again for your reply.

I have some more clarifications and appreciate if you could spend some of your time.

1) We are only considering one GAAP which is our local GAAP for all our companies...As such parallel accounting may not apply...Do you think that we are going to proceed with new GL?

2) Since we are using PCA, it is also mandatory to switch to new GL?

3) You have mentioned that the New GL Project would take approx 6 months? Is this a major project that would require more time of engagement? What are the major points in this project that requires huge of time.

Thanks again for your input.

Former Member
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HI Robert,

As a way to say thanks please award points.

In answer to you questions.

1/ OK so you dont need parallel accounting but you may want document splitting. The new GL is a combination of both document splitting and parallel accounting. Not sure the actual figures but I would guess if a client used the new GL about 90% would use document splitting and about 25% parallel accounting, therefore there will be some people who implement both. These figures are my estimates, and in certain countries and industries these will change.

2/ It is not mandatory to move to the new GL. I think SAP have made it clear switching to the new GL is an option. I doubt whether this will be forced onto clients, especially as you dont need to pay extra for it, where other areas of SAP you do. If you are happy with PCA, and dont believe you are wasting anytime with it and it produces all of the data you want straight out of SAP then stick with PCA. The reason why people move, is the month end process is a time consuming one, and where clients want a BS per Profit Center, they struggle and do this offline, in excel worksheets, which are time consuming. Document Splitting will do this for you, if you configure it correctly.

3/ The new GL can be done as a straight implementation, this means you do the config, test it and switch it on. If you do this you need to be careful with reversing documents that have not been split and so on. There is also a data migration process, where you migrate say 1 year of data into the new methodology, as document splitting has its own tables etc.

The config can be very easy to implement, however you need to review all of your GL accounts, to see how the Document Splitting will affect it, and you also need to apply rules to document types. The more document types you have the more complicated it is, as well as the more BS GL accounts you have the more complicated it is. If you have many Chart of Accounts, again, there is more complexity.

Every current type of posting needs to be tested, and you need to make sure you carry out full end to end testing for all processes, and sub processes.

The data migration part needs to be assisted by Walldorf currently and this needs to be timed with a year end.

As I mentioned before, it may well be worth bringing in consultants to review your solution, and they will be able to provide you a plan for the project, and a cost so you can see if implementing it makes financial sense to you.

Former Member
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Hi...Thanks for your reply.

We are currently using PCA and would like to have a separate balance sheet per profit center (which currently we don't have).

Could you also explain the concepts of ledger (leading & non-leading) and parallel currencies. These functionality is not clear to me & whether we are going to adopt this also.

FYI, our companies maintain same fiscal year & we do follow a calendar period ended 31 December. When consolidating our accounts we use group currency "SAR".

Thanks again for your advice.

Former Member
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OK so document splitting would be useful to you.

Here is an article about that..

http://www.financialsexpertonline.com/archive/Volume_06_(2007)/Issue_05_(May)/V6I5A5.cfm?session=

Regarding parallel accounting, you would use this if you need to report GAAP, local GAAP, US GAAP etc. I.e. specific postings for certain legal requirements, this is a replacement of the special GL.

Former Member
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Hi Robert,

Most people will recommend you to perform a technical upgrade first, whatever functinional enhancements you make later.

The new GL is the first major change in the Finance module for oer 7 years so there is a lot of talk about it.

Do you use PCA?

Does you business need to report on a Segment as per IAS 14?

Do you need to see a full balancing balance sheet per Profit Center?

If so you may need the new GL. However a project to implement the new GL may take 6 months, and you may want to migrate some of your old data into the new GL.

I would advise you bring in a consultancy to review your system and your processes, it may be that there are other new fucntionalities that you could use in ERP 6.0

I would recommend you look at the following:

https://websmp201.sap-ag.de/UPGRADE-ERP

http://solutionbrowser.erp.sap.fmpmedia.com/

If you need any futher help please get in touch.

Former Member
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Hi,

Its not really necessary migrate to new GL ..you can continue with the old system even though you migrate to ECC 6...its just that SAP has provided the new concept if you think that your business require that then you can go for it otherwise not....there are many new added things in the new GL ..like if you want reports to be generated profit center wise then this can be used..this is just an example.

Thnx

Z