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New GL documentaion in ECC 6.0

Former Member
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I appreciate if someone can post some notes or documentation on New GL in 6.0.

Thank you

Kumar K

Accepted Solutions (0)

Answers (2)

Answers (2)

Former Member
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Hello

Take a print out or copy desktop and go through the below documentation:

General Ledger Accounting (FI-GL) (New)

Purpose

The central task of G/L accounting is to provide a comprehensive picture of external accounting and accounts. Recording all business transactions (primary postings as well as settlements from internal accounting) in a software system that is fully integrated with all the other operational areas of a company ensures that the accounting data is always complete and accurate.

Beyond fulfilling the legal requirements, General Ledger Accounting also fulfills other requirements for modern accounting:

• Parallel Accounting

General Ledger Accounting allows you to perform parallel accounting by managing several parallel ledgers for different accounting principles.

• Integration of Legal and Management Reporting

In General Ledger Accounting, you can perform internal management reporting in parallel with legal reporting. For this purpose, the Profit Center Accounting functions are integrated with General Ledger Accounting. Furthermore, you can generate financial statements for any dimension (such as profit center).

• Segment Reporting

General Ledger Accounting supports the segment reports required by the accounting principles IFRS (International Financial Reporting Standards) and US GAAP (Generally Accepted Accounting Principles). For this purpose, General Ledger Accounting contains the Segment dimension.

• Cost of Sales Accounting

You can perform cost of sales accounting in General Ledger Accounting. For this purpose, General Ledger Accounting contains the Functional Area dimension.

Integration

General Ledger Accounting is integrated with all application components of the SAP System that generate posting data of relevance to General Ledger Accounting:

• Asset Accounting (FI-AA)

• FI Accounts Receivable and Accounts Payable

• Controlling (CO)

• Materials Management (MM)

• Human Capital Management (HCM)

• Treasury and Risk Management (TRM)

• Travel Management (FI-TV)

• Public Sector Management - Funds Management Government (PSM-FM)

When you activate the business function set Public Sector (EA-PS) and the global functions Funds Management (PSM-FM), you obtain a separate set of tables containing the Public Sector account assignments, such as fund and grant.

Features

General Ledger Accounting comprises the following functions for entering and evaluating posting data:

• Choice between group level or company level

• Automatic and simultaneous posting of all subledger items in the appropriate general ledger accounts (reconciliation accounts)

• Simultaneous updating of the parallel general ledgers and of the cost accounting areas

• Real-time evaluation of and reporting on current posting data, in the form of account displays, financial statements with different balance sheet versions, and additional analyses.

In this way, General Ledger Accounting automatically serves as a complete record of all business transactions. It is the central and up-to-date component for reporting. Individual transactions can be checked at any time in real time by displaying the original documents, line items, and monthly debits and credits at various levels such as:

• Account information

• Journals

• Totals/transaction figures

• Balance sheet/profit and loss evaluations

Configuring New General Ledger Accounting

Purpose

Before you can start working with the functions of New General Ledger Accounting, you have to activate them and make the general settings for Accounting. Furthermore, you have to configure the ledgers you use in General Ledger Accounting. On the basis of this data, you set up the integration with Controlling (CO) and, where applicable, your parallel accounting.

Process Flow

1. ...

1. 1. Activate New General Ledger Accounting. For information on this, see Activating General Ledger Accounting.

2. 2. Make the general settings for the fiscal year, the posting periods, and the currencies.

You find the settings for the fiscal year and posting periods in Customizing for Financial Accounting (New) under Financial Accounting Global Settings (New) ® Ledgers ® Fiscal Year and Posting Periods.

3. 3. Configure your ledgers.

4. 4. Define the integration with Controlling.

5. 5. Where applicable, set up parallel accounting.

Activating General Ledger Accounting

Use

To make the settings and use the functions in General Ledger Accounting, you have to activate it. To do this, in Customizing choose Financial Accounting ® Financial Accounting Global Settings ® Activate New General Ledger Accounting.

Features

Activating General Ledger Accounting has the following effects:

● The Customizing settings for General Ledger Accounting appear in the SAP Reference IMG. You access the settings under Financial Accounting (New) ® Financial Accounting Global Settings (New) and General Ledger Accounting (New).

● The General Ledger Accounting functions appear in the SAP Easy Access menu under Accounting ® Financial Accounting ® General Ledger.

● The tables for new General Ledger Accounting are activated and updated.

In the standard system, the tables from classic General Ledger Accounting (GLT0) are updated as well as the tables in new General Ledger Accounting during the activation. This enables you to perform a ledger comparison during the implementation of new General Ledger Accounting to ensure that your new General Ledger Accounting has the correct settings and is working correctly. To compare ledgers, in Customizing choose Financial Accounting Global Settings (New) ® Tools ® Compare Ledgers.

We recommend that you deactivate the update of tables for classic General Ledger Accounting once you have established that new General Ledger Accounting is working correctly. To do this, in Customizing choose Financial Accounting Global Settings (New) ® Tools ® Deactivate Update of Classic General Ledger.

In some of the General Ledger Accounting functions, you can use the Ledger Group field, such as for posting.

● The following functions are available:

Document Splitting

Real-Time Integration of Controlling with Financial Accounting

Functions for Profit Center Accounting (such as statistical key figures and transfer prices)

Fiscal Year

Definition

Usually a period of twelve months for which a company regularly creates financial statements and checks inventories.

The fiscal year may correspond exactly to the calendar year, but this is not obligatory.

Under certain circumstances a fiscal year may be less than twelve months (shortened fiscal year).

Structure

A fiscal year is divided into posting periods. Each posting period is defined by a start and a finish date. Before you can post documents, you must define posting periods, which in turn define the fiscal year.

In addition to the posting periods, you can also define special periods for year-end closing.

In General Ledger Accounting, a fiscal year can have a maximum of twelve posting periods and four special periods. You can define up to 366 posting periods in the Special Purpose Ledger.

Use

In order to assign business transactions to different time periods, you must define a fiscal year with posting periods. Defining the fiscal year is obligatory.

You define your fiscal year as fiscal year variants which you then assign to your company code. One fiscal year variant can be used by several company codes.

You have the following options for defining fiscal year variants:

• Fiscal year same as calendar year

• Fiscal year differs from calendar year (non-calendar fiscal year). The posting periods can also be different to the calendar months.

You define your fiscal year variants in Customizing for Financial Accounting as follows: Financial Accounting Global Settings  Fiscal Year  Maintain Fiscal Year Variant (Maintain Shortened Fiscal Year)

Integration

When you enter a posting, the system automatically determines the posting period. For more information, see Determining Posting Periods During Posting

In the general ledger, the system saves the transaction figures for all accounts for each posting period and each special period separately according to debits and credits. In the Special Purpose Ledger component (FI-SL), you can save the transaction figures as a balance.

Currencies

Definition

Legal means of payment in a country.

Use

For each monetary amount that you enter in the SAP System, you must specify a currency. You enter currencies as the ISO standards, for example, USD for US dollar.

You define currencies in Customizing. To do this, choose General Settings  Currencies  Check Currency Codes.

In Financial Accounting, you have to specify for each of your company codes, in which currency ledgers should be managed. This currency is the national currency of the company code, that is, the local currency (or company code currency). From a company code view, all other currencies are then foreign currencies.

You can manage ledgers in two parallel currencies in addition to the local currency, for example, group currency or hard currency. For more information, see Parallel Currencies.

In order for the system to translate amounts into various currencies, you must define exchange rates. For each currency pair, you can define different exchange rates and then differentiate between them by using exchange rate types.

Integration

In Financial Accounting, currencies and currency translation are relevant in the following circumstances:

General Ledger Accounts Receivable and Accounts Payable

Account master data Defining account currencies

Defining reconciliation accounts

Posting Posting documents in foreign currency

Clearing Clearing open items in foreign currency

Foreign currency valuation Foreign currency valuation

Parallel Currencies in Financial Accounting

Use

In Financial Accounting, you can define up to two parallel currencies in addition to the local currency. Your ledgers are thereby managed in these parallel currencies in addition to the local currency.

You can use various different currency types as parallel currencies. You define the currency for a currency type when you define the organizational units.

• Group Currency

You define the group currency when you define your client.

• Company Currency

You define the company currency when you define the company that is assigned to your company code.

• Hard Currency

You define the hard currency when you define the country that your company code is assigned to.

• Index-Based Currency

You define the index currency when you define the country that your company code is assigned to.

You can use a maximum of two parallel currencies (second and third local currencies).

If you have defined the group currency as the second local currency, this has no additional effects. In all other cases, in the application component Special Purpose Ledger you have to define an additional ledger in which transaction figures are managed.

Features

If you manage your ledgers in parallel currencies, this has the following effects:

• During posting, the amounts are also saved in the parallel currencies. The amounts are translated automatically, but you can also enter them manually.

• G/L account transaction figures are also updated in the parallel currencies.

• Exchange rate differences also arise in the parallel currencies.

• You can also carry out a foreign currency valuation in the parallel currencies.

Activities

To define parallel currencies, proceed as follows in Customizing for Financial Accounting: Financial Accounting Global Settings ® Company Code ® Parallel Currencies.

Local Currency Changeover (FI-GL) (New)

Use

In New General Ledger Accounting, you can change your local currencies to the euro. For more information, see the general documentation for Local Currency Changeover.

Prerequisites

You find these reports in Customizing for Cross-Application Components once you have activated New General Ledger Accounting.

Features

Translating local currency amounts can lead to rounding differences, which can mean that the converted currency amounts for each document do not produce a balance of zero. This is corrected automatically with the insertion of a correction document item with an account assignment relevant to general ledger accounting. These processes are run automatically for all phases of the local currency changeover.

If you migrate data from classic General Ledger Accounting into New General Ledger Accounting, note that you do not perform the euro changeover in the year of the migration. Clear all migrated open items in the migration year and perform the local currency changeover in the year following the migration. Consequently, in the year in which you then perform the local currency changeover, you no longer have any open items prior to the migration event.

Activities

You find the programs for the local currency changeover in the Implementation Guide for Cross-Application Components under European Monetary Union: Euro ®Local Currency Changeover.

See the important notes in the general documentation and in the documentation of the IMG activities.

Configuring Ledgers

Purpose

Before you can start working with the functions of new General Ledger Accounting, you have to configure the ledgers. When you have planned the data structure for General Ledger Accounting, you can reflect it in Customizing in your SAP system.

You configure ledgers. The term ledger describes a technical view of a database table and it is used in this documentation as a synonym for a general ledger.

Prerequisites

• You have activated New General Ledger Accounting .

• You have made the general settings for the fiscal year, the posting periods, and the currencies.

Process Flow

To configure the ledgers for General Ledger Accounting, proceed as follows:

2. ...

6. 1. Define the standard fields that you require. You make the settings in Customizing for Financial Accounting (New) under Financial Accounting Global Settings (New) ® Ledgers ® Fields ® Standard Fields.

7. 2. You can also define your own fields. For more information, see Customer Field.

8. 3. Create your ledgers and ledger groups and configure them. See Ledger and Ledger Group.

9. 4. Assign the desired scenarios to your ledgers. Read the information under Scenario in General Ledger Accounting.

Result

You have configured ledgers in General Ledger Accounting and can now create your master data (such as chart of accounts, G/L accounts, segment, and profit center).

Totals Tables

Definition

A totals table is a database table in which totals records are stored.

A totals table is used in General Ledger Accounting as the basis for your parallel ledgers. It offers a number of dimensions. SAP delivers the totals table FAGLFLEXT for General Ledger Accounting in the standard system.

Use

Standard Totals Table

When you activate new General Ledger Accounting, the totals records in General Ledger Accounting are updated in the standard totals table FAGLFLEXT. This totals table is deployed in functions such as planning and reporting.

SAP recommends working with the standard totals table delivered. In this way, you ensure that you can use the functions based on the standard totals table.

Own Totals Table

If the standard totals table delivered does not fulfill your requirements, you can define your own totals table. To do this, in Customizing for Financial Accounting (New), choose Financial Accounting Global Settings (New) ® Ledgers ® Fields ® Customer Fields® Include Fields in Totals Table. Choose Extras ® Create Table Group.

When a totals table is created, the system simultaneously generates the corresponding line items table. For more information on creating table groups, see the SAP Library under Financials ® Financial Accounting ® Special Purpose Ledger ® Configuration ® Database Tables ® Database Definition and Installation.

You can include your own dimensions in the totals table. For more information, see Customer Fields.

Ledger

Definition

A ledger is a section of a database table. A ledger only contains those dimensions of the totals table that the ledger is based on and that are required for reporting.

Use

In General Ledger Accounting, you can use several ledgers in parallel. This allows you to produce financial statements according to different accounting principles, for example. You create a ledger for each of the general ledgers you need.

A ledger uses several dimensions from the totals table it is based on. Each dimension of the totals table represents a subset of the coding block. You can also include customer fields in your ledgers. To do this, you have to add the customer field to the coding block and then include this field in the totals table that the ledger is based on. For more information, see Customer Fields.

You define your ledgers in Customizing for Financial Accounting (New) under Financial Accounting Global Settings (New) ® Ledgers ® Ledgers. When you create a ledger, the system automatically creates a ledger group with the same name.

Structure

You must designate one ledger as the leading ledger.

Parallel ledgers:

• Leading ledger

The leading ledger is based on the same accounting principle as that of the consolidated financial statements.

If you use the account approach for parallel accounting, you post all data to the leading ledger.

This leading ledger is integrated with all subsidiary ledgers and is updated in all company codes. This means that it is automatically assigned to all company codes.

In each company code, the leading ledger receives exactly the same settings that apply to that company code: the currencies, the fiscal year variant, and the variant of the posting periods. You can define a second and third parallel currency for your leading ledger for each company code. In Customizing for Financial Accounting (New), choose Financial Accounting Global Settings (New) ® Ledgers ® Ledgers ® Define Currencies of Leading Ledger.

• Non-leading ledger

The non-leading ledgers are parallel ledgers to the leading ledger. They can be based on a local accounting principle, for example. You have to activate a non-leading ledger for the individual company codes.

Posting procedures with subledger or G/L accounts managed on an open item basis always affect all ledgers. This means that you cannot perform ledger-specific postings to subledger or G/L accounts managed on an open item basis. If you manage G/L accounts on an open item basis to monitor accounting aspects such as reserve allocations and reversals, you need to take additional measures in your internal controls system.

Non-leading ledgers can have different fiscal year variants and different posting period variants per company code to the leading ledger of this company code. The second and third currency of the non-leading ledger must be a currency that is managed as second or third currency in the respective company code. However, you do not have to have a second and third currency in the parallel ledgers; these are optional. Alternative currencies are not possible.

For more information about parallel currencies, see Managing Parallel Currencies in Parallel Ledgers.

Rollup ledgers:

In addition to your parallel ledgers, you can also define a rollup ledger for special reporting purposes. In a rollup ledger, you can combine summarized data from other ledgers in General Ledger Accounting. This enables you to compile cumulated reports on different ledgers.

Day ledgers:

You use a day ledger to create a day ledger if you want to create reports for average balances (reports for displaying average daily balances). You can activate the day ledger for drilldown reporting.

You may not define day ledgers as the leading ledger or as the representative ledger in a ledger group.

Example

You create your consolidated financial statements in accordance with the IAS accounting principles. Your individual company codes apply the local accounting principles US GAAP or German HGB to produce their financial statements. You therefore create three ledgers:

• Ledger LL (leading ledger) that is managed according to the group accounting principle

• Ledger L1 (non-leading ledger) that you activate for all company codes that apply US GAAP

• Ledger L2 (non-leading ledger) that you activate for all company codes that apply HGB

Making Settings for Ledgers

Use

In General Ledger Accounting, you can use several parallel general ledgers. You do this to produce financial statements according to different accounting principles, for example. You create a ledger for each of the general ledgers you need. You must check the settings of your leading ledger even if you do not use parallel ledgers.

Procedure

You make the settings listed below in Customizing for Financial Accounting (new) under Financial Accounting Global Settings (New) ® Ledgers ® Ledgers.

3. ...

10. 1. Define Ledgers for General Ledger Accounting

Define your ledgers and designate one ledger as leading ledger (see also Ledgers).

When you create a ledger, the system automatically creates a ledger group with the same name.

11. 2. Define Currencies of Leading Ledger

If necessary, define a second and third parallel currency for your leading ledger for each company code.

For more information, see Managing Parallel Currencies in Parallel Ledgers.

The following settings are optional:

12. 3. Define and Activate Non-Leading Ledgers

If you use parallel ledgers, define your non-leading ledgers. If necessary, create alternative additional currencies or an alternative fiscal year variant.

13. 4. Assign Scenarios and Customer Fields to Ledgers

Here you can assign the following to your ledgers:

•  Scenarios

•  Customer Fields

•  Versions

In versions, you define general settings for the ledger that are fiscal year-dependent. You specify whether actual data is recorded, whether manual planning is allowed, and whether planning integration with Controlling is activated.

14. 5. Activate Cost of Sales Accounting

Activate cost of sales accounting for your company codes if required. If you do this, the functional area is derived and updated for postings in these company codes. For information about the prerequisites for cost of sales accounting, see the documentation for this IMG activity.

15. 6. Define Ledger Group

You can combine any number of ledgers in a ledger group. In this way, you simplify the tasks in the individual functions of General Ledger Accounting.

For more information, see Ledger Groups.

Result

You have made all of the settings required for your ledgers.

For parallel accounting, you can now assign an accounting principle to your ledgers.

Ledger Groups

Definition

A ledger group is a combination of ledgers for the purpose of applying the functions and processes of General Ledger Accounting to the group as a whole.

Use

You can combine any number of ledgers in a ledger group. In this way, you simplify the tasks in the individual functions and processes of General Ledger Accounting. For example, you can make a posting simultaneously in several ledgers.

In some General Ledger Accounting functions, you can only specify a ledger group and not individual ledgers. This has the following consequences for the creation of your ledger groups:

• Each ledger is also created automatically as a ledger group of the same name. You can use these automatically created ledger groups to process an individual ledger.

• You only have to create those ledger groups that you want to process together in a function using processing for several ledgers.

• If you do not enter a ledger group, processing is performed automatically for all ledgers. You therefore do not need to create a ledger group for all ledgers.

You define your ledger groups in Customizing for Financial Accounting (new) under Financial Accounting Global Settings (New) ® Ledgers ® Ledgers ® Define Ledger Group.

Structure

Representative Ledger of a Ledger Group

When you define each ledger group, you have to designate one of the assigned ledgers as the representative ledger for that ledger group. The system uses the representative ledger to determine the posting period during posting and to check whether the posting period is open. The posting is then made to the assigned ledgers of the ledger group using the appropriate fiscal year variant for each individual ledger.

When the posting periods of the representative ledger are open, the postings are made to all other assigned ledgers, even if their posting periods are closed.

The following rules apply for the specification of the representative ledger of a ledger group:

• If the ledger group has a leading ledger, the leading ledger must be designated as the representative ledger.

• If the ledger group does not have a leading ledger, you must designate one of the assigned ledgers as the representative ledger. During posting, the system uses the fiscal year variant of the company code to check whether the selection is correct:

•  If all ledgers in the ledger group have a different fiscal year variant to that of the company code, you can designate any ledger as the representative ledger.

•  If one of the ledgers in the ledger group has the same fiscal year variant as that of the company code, you must designate that ledger as the representative ledger.

You may be unable to use the same ledger group for all company codes. In that case, you have to create separate ledger groups and, in each one, designate a different ledger as the representative ledger.

Day Ledger

Definition

A day ledger is a totals table with a fiscal year variant of 366 periods and containing all original postings for the general ledger.

Use

You create a day ledger if you want to create reports for average balances (reports for displaying average daily balances). You can activate the day ledger for drilldown reporting. For more information, refer to SAP Note 599692.

You may not define day ledgers as the leading ledger or as the representative ledger in a ledger group.

Example

When defining a cycle for a ledger, you can specify a ledger group.

You can define this ledger group so that it contains the source ledger and the day ledger.

Note, however, that an allocation is posted as period-end closing on the last day of the period.

Let us assume that you have made the following postings:

Date Amount in EUR

January 5 100

January 8 200

January 17 300

February 5 400

This results in the following balances in the ledgers:

Leading Ledger (16 Periods)

Period/Amount Day Ledger

Period/Amount

1 / 600 5 / 100

2 / 400 8 / 200

17 / 300

36 / 400

If you perform the allocation for January (postings up until January 31), you distribute EUR 600 to other units:

Leading Ledger (16 Periods)

Period/Amount Day Ledger

Period/Amount

1 / 0 5 / 100

2 / 400 8 / 200

17 / 300

31 / -600

36 / 400

For more information on allocation in New General Ledger Accounting, see Allocation.

Customer Field

Definition

A customer field is a database table field that is created and defined by the customer.

Use

You can include your own fields (such as the field Region) in the data structure of General Ledger Accounting. To do so, you have to make various Customizing settings. For more information, see Defining Customer Fields.

During posting, you can fill your customer fields in the following ways:

• Automatic Derivation

You can have the system derive your customer fields automatically for all postings that are relevant for General Ledger Accounting.

• Manual Posting

In the G/L account posting functions delivered in General Ledger Accounting, you find your customer fields as account assignment objects. For these fields to be available in the G/L account posting (Enjoy) as well, you need to assign your customer fields to the entry variant that you use during posting. For this, choose in Customizing General Ledger Accounting (New) ® Business Transactions ® G/L Account Posting - Enjoy ® Include Customer Fields in Enjoy Transactions.

In other application components (such as Logistics and Controlling), however, you cannot make postings directly to your customer fields.

Defining Customer Fields

To include a customer field in the data structure of General Ledger Accounting, you have to make various settings in Customizing for Financial Accounting (New):

4. ...

16. 1. Include the field in the coding block.

For this, choose in Customizing Financial Accounting Basic Settings (New) ® Ledgers ® Fields ® Customer Fields ® Edit Coding Block.

17. 2. Include the field in the totals table that your ledgers are based on.

For this, choose in Customizing Financial Accounting Basic Settings (New) ® Ledgers ® Fields ® Customer Fields ® Include Fields in Totals Table.

18. 3. Assign the field to the desired ledgers.

For this, choose in Customizing Financial Accounting Basic Settings (New) ® Ledgers ® Ledger ® Assign Scenarios and Customer Fields to Ledgers.

Scenario in General Ledger Accounting

Definition

The scenario combines Customizing settings from different business views. Each business view specifies which posting data is transferred from different application components in General Ledger Accounting, such as cost center update or profit center update.

Use

You assign the desired scenarios to your ledgers. For each ledger, you define which fields are filled with posting data from other application components.

• To assign a scenario to a ledger, in Customizing for Financial Accounting (New), choose Financial Accounting Global Settings (New) ® Ledgers ® Ledgers ® Assign Scenarios and Customer Fields to Ledgers (see also Making Settings for Ledgers).

SAP delivers a number of scenarios in the standard system. You cannot define your own scenarios.

• To display the fields for a scenario, in Customizing for Financial Accounting (New), choose Financial Accounting Global Settings (New) ® Ledgers ® Fields ® Display Scenarios for General Ledger Accounting.

Structure

For each scenario, the system transfers the posting data relevant for General Ledger Accounting from the actual and plan documents.

Overview of the Scenarios Delivered by SAP

Scenario Fields Filled Technical Field Name

Cost center update Cost center

Sender cost center RCNTR

SCNTR

Preparation for consolidation Trading partner

Transaction type RASSC

RMVCT

Business area Business area

Trading partner business area RBUSA

SBUSA

Profit center update Profit center

Partner profit center PPRCTR

PRCTR

Segmentation Profit center

Segment

Partner segment PRCTR

PSEGMENT

SEGMENT

Cost of sales accounting Functional area

Partner functional area RFAREA

SFAREA

You have to set up cost of sales accounting. The Functional Area field is not filled automatically by the assignment of the scenario to your ledger. For more information, see Activating Cost of Sales Accounting.

Integration

If you use document splitting, define the fields of a scenario that you have assigned to the ledger as document splitting characteristics.

For more information, see Making Settings for Document Splitting.

Cost of Sales Accounting

Use

The profit and loss statement of an organization can be created according to two different procedures:

• Period accounting

• Cost of sales accounting

Cost of sales accounting compares the sales revenue for an accounting period with the manufacturing costs of the activity. The expenses are allocated to the commercial functional areas (manufacturing, sales and distribution, administration, and so on). Expenses and revenues that cannot be assigned to the functional areas are reported in further profit and loss items, sorted according to expense and revenue type.

With this type of grouping, cost of sales accounting identifies where costs originate in a company. It therefore portrays the commercial purpose of the expense.

Prerequisites

You have made the required settings in Customizing. For more information, see Activating Cost of Sales Accounting.

Real-Time Integration of Controlling with Financial Accounting

Use

During allocations in Controlling, most of the postings created do not affect Financial Accounting. These postings do not update any G/L account transaction figures; they are postings within Controlling. If, however, an allocation in Controlling leads to a change in the functional area or any other characteristic (such as Profit Center or Segment) that is relevant for evaluations in Financial Accounting, a shift occurs between the affected items in the profit and loss statement. For this reason, this information has to be transferred to Financial Accounting. This reconciliation between Controlling and Financial Accounting takes place by means of real-time integration.

As a result of real-time integration, all Controlling documents that are relevant for General Ledger Accounting are transferred from Controlling to General Ledger Accounting in real time. This means that Financial Accounting is always reconciled with Controlling.

A document is created in Financial Accounting for each posting in Controlling. This means that the detailed information contained in the CO documents is always available in reports in New General Ledger Accounting. This information can be sorted by the following, for example:

● Functional area

● Cost center

● Internal order

Integration

Real-time integration replaces the reconciliation postings from the reconciliation ledger. Consequently, you do not need a reconciliation ledger.

If, however, you do not set the Reconciliation Ledger Active indicator in Customizing for the controlling area, you cannot use the reports belonging to report groups 5A* (5AA1-5AW1). You set this indicator in Customizing for Controlling under General Controlling ® Organization ® Maintain Controlling Area. The reconciliation ledger serves as the data source for reports belonging to the report groups 5A*. You find these reports in the SAP Easy Access menu under Accounting ® Controlling ® Cost Element Accounting ® Information System ® Reports for Cost and Revenue Element Accounting.

Replacement reports are available as follows:

● You find the reports in the SAP Easy Access menu under Accounting ® Controlling ® Cost Element Accounting ® Information System ® Reports for Cost and Revenue Element Accounting (New).

● You can create additional reports in report group 5A21. You can assign the report group to any drilldown report of New General Ledger Accounting using the report-report interface.

● From the report Financial Statements Actual/Actual Comparison, you can call up the report Cost Elements: Breakdown by Company Code. You find the report Financial Statement: Actual/Actual Comparison in the SAP Easy Access menu under Accounting ® Financial Accounting ® General Ledger ® Information System ® General Ledger Reports (New) ® Balance Sheet/Profit and Loss Statement/Cash Flow ® General ® Actual/Actual Comparisons.

You can define account determination for each controlling area. You do this in Customizing for Financial Accounting (New) under Financial Accounting Global Settings (New) ® Ledgers ® Real-Time Integration of Controlling with Financial Accounting ® Account Determination for Real-Time Integration. In this way, you use the same account determination as for the reconciliation ledger (transaction OK17). You can then use the reconciliation ledger reports to compare FI balances with CO balances.

Prerequisites

If you use real-time integration in at least one company code, you need to have activated company code validation for the related controlling area. You do this in Customizing for Controlling under General Controlling ® Organization ® Maintain Controlling Area ® Activate Components/Control Indicators. Otherwise, the reconciliation between Financial Accounting and Controlling at company code level is not possible.

In Customizing for Financial Accounting (New), you have processed the IMG activities under Financial Accounting Global Settings (New) ® Ledgers ® Real-Time Integration of Controlling with Financial Accounting.

Activate real-time integration for all company codes between which you want to make CO-internal allocations.

In the IMG activity Define Variants for Real-Time Integration, do not select all CO line items for transfer. If the same line items are to be transferred as through the reconciliation posting from the reconciliation ledger, select the following line items:

• ● Cross-Company Code

• ● Cross-Business Area

• ● Cross-Functional Area

• ● Cross-Fund (if you use Public Sector Management)

• ● Cross-Grant (if you use Public Sector Management)

Features

Value flows within Controlling that are relevant for General Ledger Accounting – such as assessments, distributions, confirmations, and CO-internal settlements – are transferred immediately. The FI documents are posted with the business transaction COFI. They contain the number of the CO document. This means that you can call up the CO document from the FI document, and vice versa.

Activities

If a document could not be transferred because the posting period was blocked in Financial Accounting or no account was found, for example, the document is included in a postprocessing worklist. You need to check this worklist regularly and process any documents in it. From the SAP Easy Access menu, choose Accounting ® Financial Accounting ® General Ledger ® Corrections ®Post CO Documents to FI.

Example

An internal order for business area 0001 is settled to a cost center of business area 0002. The document from this allocation is transferred in real time to Financial Accounting.

Parallel Accounting

Purpose

You can portray parallel accounting in your SAP System. This enables you to perform valuations and closing preparations for a company code according to the accounting principles of the group as well as other accounting principles, such as local accounting principles.

To simplify matters, this documentation assumes two parallel accounting principles.

Implementation Considerations

You can use the following approaches to portray parallel accounting in your SAP System.

• Portrayal Using Additional Accounts

• Portrayal Using Parallel Ledgers

You can also continue to use the option for portraying parallel accounting using an additional company code. However, this approach is not supported by all application components. For more information, see Portrayal Using Additional Company Code.

The solution scenarios described require that you have customized the application components that you use consistently.

For information about the settings for parallel accounting for the individual components, see the links in the list under “Integration”.

Integration

Parallel accounting is supported by the following application components:

• Financial Accounting (FI)

• Asset Accounting (FI-AA)

• Corporate Finance Management (CFM)

• Controlling (CO)

• Inventory Accounting (MM and ML)

For information about the general settings for parallel accounting, see Defining and Assigning Accounting Principles.

Example

Parallel accounting is necessary for a German subsidiary of an American group. The German subsidiary has to create financial statements according to the accounting principles of the group (such as US GAAP) as well as according to German commercial law (HGB).

Portraying Parallel Accounting

Use

You can use the following approaches to portray parallel accounting in your SAP System:

• Portrayal Using Additional Accounts

• Portrayal Using Parallel Ledgers

You can also continue to use the option for portraying parallel accounting using an additional company code. However, this approach is not supported by all application components. For more information, see Portrayal Using Additional Company Code.

Portrayal Using Additional Accounts

Use

You can portray parallel accounting in your SAP System by creating additional accounts. This means that you have different account areas:

• One joint account area for postings that are the same for both accounting principles

• One area with specific accounts for each accounting principle. Each business transaction that, dependent on the accounting principle, leads to a different posting, is posted to the corresponding specific account area.

When you perform closing according to a specific accounting principle, the common accounts and the specific accounts for this accounting principle are evaluated.

Account Areas for Portraying Parallel Accounting Using Additional Accounts

All methods of parallel valuation in the SAP System (such as value adjustments or results analysis) support parallel accounting using additional accounts.

The additional accounts approach is particularly useful if the number of valuation differences in your accounting principles is limited and a larger number of general ledger accounts is acceptable.

Prerequisites

If you introduce this approach, note the following:

• Systematic Assignment of Account Numbers

Before you create the general ledger accounts for the specific account areas, you should set up a concept for number assignment.

• Retained Earnings Account and Balance Carryforward

You can manage a separate retained earnings account for each accounting principle. This means that, at a fiscal year change, you can carry forward the balances of the profit and loss accounts from the specific account areas to the retained earnings account specified. You only have to carry forward the balances once.

When you create the general ledger accounts for the specific account areas, make sure that you assign a separate P&L statement account type for each account area. Then assign a separate retained earnings account to each P&L statement account type.

For more information, see Balance Carryforward.

Features

• Financial Statement Versions

You can create a separate financial statement version for each accounting principle. This means that when you create financial statements, you can select a separate structure for each accounting principle.

• Complete Postings versus Difference Postings

You can perform parallel postings in the specific account areas either as complete postings in both areas or as difference postings:

•  In Asset Accounting (FI-AA), both difference postings and complete postings are supported.

•  All other application components (FI, CO, CFM) support only complete postings.

•  The Material Ledger supports only difference postings.

• Reporting

For reporting, you can use the following tools in this approach:

•  Drilldown Reporting

•  Report Painter/Report Writer

•  To create financial statements, you can use the report Financial Statements (RFBILA00)

Activities

Create accounts that can be posted to in the company code. From the SAP Easy Access screen, choose Accounting ® Financial Accounting ® General Ledger ® Master Data ® General Ledger Accounts ® Individual Processing ®

• Centrally

• In Chart of Accounts

• In Company Code

Portrayal Using Parallel Ledgers

Use

In General Ledger Accounting, you can perform parallel accounting by running several parallel ledgers (general ledgers) for different accounting principles. During posting, you can post data to all ledgers, to a specified selection of ledgers, or to a single ledger:

The data required according to the accounting principle for the consolidated financial statements is managed in the leading ledger of the general ledger (see also Ledgers). This leading ledger is integrated with all subsidiary ledgers and is updated in all company codes. This means that it is automatically assigned to all company codes.

For each additional (parallel) accounting principle, create an additional (non-leading) ledger in General Ledger Accounting.

SAP recommends that you implement this parallel ledger approach if the number of general ledger accounts would be unmanageable for the scenario using additional accounts.

Advantages:

1. You manage a separate ledger for each accounting principle.

2. You can use standard reporting for the leading ledger and all other parallel ledgers.

3. With this solution scenario, you can portray different fiscal year variants.

4. The number of general ledger accounts is manageable.

Disadvantage:

1. The use of parallel ledgers increases the volume of data.

Integration

You can post to the parallel ledgers from various different SAP application components:

Financial Accounting (FI)

Asset Accounting (FI-AA)

Treasury and Risk Management (TRM)

Controlling (CO)

Materials Management (MM)

Prerequisites

To portray parallel accounting using parallel ledgers, you have to make various settings in Customizing.

For information about the general settings, see Defining and Assigning Accounting Principles.

For information about the settings in the components, see the documentation for parallel accounting in the listed application components.

Features

You can use the following functions for your parallel ledgers:

Complete ledger

Parallel ledgers are always managed as complete ledgers. This means that all postings where there are no valuation differences are posted to the leading and the non-leading ledgers in each company code.

Ledger group

You can combine any number of ledgers in a ledger group. In this way, you simplify the tasks in the individual functions and processes of General Ledger Accounting. This means that you can enter a posting for several ledgers simultaneously (see also Ledger Group).

Ledger selection

2. Postings where no ledger or ledger group is specified are always updated in all ledgers.

3. In the case of manual valuation postings, you can enter the ledger group. This posting is then only updated in the ledgers contained in this ledger group.

4. Documents created by automatic valuations, such as the foreign currency valuation and currency translation, contain the account assignment Accounting Principle. You can assign this account assignment to a ledger group and thereby control in which ledgers this posting is to be updated.

SAP recommends that you define a separate document type for the manual postings that are only to be updated in specific ledgers.

Reporting

For reporting, you can use the following tools in this approach:

5. Drilldown Reporting

6. Report Painter/Report Writer

7. To create financial statements, you can use the report Financial Statements(RFBILA00) for all ledgers.

Activities

The system performs all postings automatically according to the Customizing setting made.

Manual Postings:

You can post manual postings that are only relevant for one individual ledger using the following function in General Ledger Accounting:

From the SAP Easy Access screen, choose Accounting ® Financial Accounting ® General Ledger ® Posting ® Enter General Posting for Ledger Group.

Portrayal Using Additional Company Code

Use

You can portray parallel accounting in your SAP System by defining an additional company code. Difference postings are created for additional accounting and posted to the additional company code. Reporting covers the actual company code and the additional company code.

Integration

The additional company code approach is only supported by the application component Financial Accounting (FI). It is no longer possible to post to an additional company code from any other application component.

If you are an upgrade customer from an R/3 Enterprise release, you can continue to use this obsolete approach in Asset Accounting (FI-AA). However, you cannot make new settings in Customizing or reconfigure the approach.

SAP recommends that you only use this approach if it is already implemented and you have no additional requirements.

Features

You can post to an additional company code with the following valuation reports:

• Value Adjustment

• Reclassification and Sorting of Receivables and Payables

• Foreign Currency Valuation

In addition to the automatic postings created by the valuation reports, you can perform manual postings to the additional company code.

For more information about the settings for these reports, see Parallel Accounting in Financial Accounting.

Reporting

For reporting, you can use the following tools in this approach:

• Drilldown Reporting

• Report Painter/Report Writer

• To create financial statements, you can use the report Financial Statements (RFBILA00)

Parallel Accounting in the Application Components

Use

If you want to create financial statements according to parallel accounting principles, this means that the system has to perform different postings for each accounting principle for some business transactions. In the individual SAP application components, various functions and valuation reports are affected by the use of parallel accounting.

Integration

The following SAP application components support parallel accounting in their valuation reports and functions:

• Financial Accounting (FI)

• Asset Accounting (FI-AA)

• Treasury and Risk Management (TRM)

• Controlling (CO)

• Materials Management (MM) and Material Ledger:

•  Material Price Change (MM-IV-MP)

•  Balance Sheet Valuation (MM-IM-VP)

•  Actual Costing/Material Ledger (CO-PC-ACT)

Parallel Accounting in Financial Accounting

Use

In Financial Accounting, the following functions or valuation reports are affected by parallel accounting:

• Reclassification and Sorting of Receivables and Payables

• Value Adjustments

• Foreign Currency Valuation

• Currency Translation

• Accruals

• Provisions

Prerequisites

Prerequisites for Reclassification and Sorting of Receivables and Payables

You can use the reclassification/sorting report to reclassify and sort your receivables and payables according to sort methods that you define, such as for due date periods.

If you want to sort and reclassify the receivables and payables for different accounting principles, you have made the following settings:

5. ...

19. 1. You have defined the valuation areas.

To do this, in the Implementation Guide for Financial Accounting (New), choose General Ledger Accounting (New) ® Periodic Processing ® Valuate ® Define Valuation Areas.

20. 2. You have defined the account determination for each valuation area.

To do this, in the Implementation Guide for Financial Accounting (New), choose General Ledger Accounting (New) ® Periodic Processing ® Valuate ® Reclassify ® Transfer and Sort Receivables and Payables ®

•  Define Adjustment Accounts for Receivables/Payables by Remaining Term

•  Define Adjustment Accounts for Changed Reconciliation Accounts

•  Define Adjustment Accounts for Investments

Double-click a transaction to select it. The Enter Chart of Accounts dialog box appears. Choose with the quick info text Change Valuation Area.

21. 3. You have defined a sort method for each valuation area.

To do this, in the Implementation Guide for Financial Accounting (New), choose General Ledger Accounting (New) ® Periodic Processing ® Valuate ® Reclassify ® Transfer and Sort Receivables and Payables.

22. 4. To enable the execution of the postings resulting from the sorting and reclassification for your parallel accounting principle, you have made the following settings depending on the approach you have selected:

1. a. Portrayal Using Additional Accounts:

You assign an accounting principle to the valuation areas. You have already assigned accounts to the valuation areas under point 2. You create separate accounts for each type of accounting.

To do this, in the Implementation Guide for Financial Accounting (New) choose General Ledger Accounting (New) ® Periodic Processing ® Valuate ® Assign Valuation Areas and Accounting Principles.

2. b. Portrayal Using Parallel Ledgers:

You have defined the additional accounting principles and assigned them to the parallel ledgers (or ledger group) (see Defining and Assigning Accounting Principles). You then assign these accounting principles to the valuation areas as described under 4.a).

Run the sorting/reclassification valuation report separately for each accounting principle (see also Reclassification and Sorting of Receivables and Payables).

Prerequisites for Value Adjustments

If you want to perform value adjustments for doubtful receivables, you have the following options:

• You can post the value adjustments manually.

• You can post the value adjustments automatically using the flat-rate individual value adjustment. To do this, you have to define rules in Customizing. In these rules, you define when the system should adjust which receivables, and when the corresponding provisions are to be posted.

For more information, see Value Adjustments.

If you want to perform the value adjustment for different accounting principles, you have made the following settings:

• You have defined the account determination for each valuation area (as in point 1 above).

• To enable the execution of the postings resulting from the value adjustment, you have made the following settings depending on the approach you have selected:

•  Portrayal via additional accounts:

You have made the settings as described in 4.a).

•  Portrayal via parallel ledgers:

You have made the settings as described in 4.b).

Prerequisites for Foreign Currency Valuation

You use the foreign currency valuation to valuate open items posted in a foreign currency and balances of G/L accounts and balance sheet accounts managed in foreign currency. The report creates the postings that result from the valuation automatically. You have defined the account determination for these postings in Customizing:

• For the valuation of open items, the postings are to expense/revenue accounts for exchange rate differences and balance sheet adjustment accounts for receivables and payables.

• For the valuation of foreign currency balances, the postings should be to balance sheet adjustment accounts if you want to perform several valuations in parallel.

• Foreign Currency Valuation Using Valuation Area

You perform the foreign currency valuation for the valuation area. The exchange rate differences are determined by key date, posted, and then immediately reversed. During clearing, the complete exchange rate difference is posted.

If you want to perform the foreign currency valuation for different accounting principles, and use different approaches, you have to run the report separately for each different valuation area.

The foreign currency valuation takes account of the document splitting characteristics such as the profit center.

For more information about the foreign currency valuation, see Foreign Currency Valuation.

Accruals

In Financial Accounting, you can use various functions to post accruals:

• Recurring entries

You can make recurring entries in additional accounts or an additional company code. You cannot use recurring entries for accruals postings in a parallel ledger.

• Manual Accruals

You can use the Manual Accruals functions to post the accruals postings to additional accounts or in a parallel ledger. When you create an accrual object, assign an accrual method to the combination of accrual type and accounting principle. This method determines whether accruals are to be linear or declining balance, for example. The postings are executed simultaneously for different accounting principles. For the postings in the additional accounts or parallel ledgers to be executed, you have made the following settings:

•  Portrayal Using Additional Accounts:

In the Implementation Guide for Financial Accounting (New), choose General Ledger Accounting (New) ® Business Transactions ® Manual Accruals ® Settings for Posting Accruals ® Set Up Account Determination in the Accrual Engine ® Simple Account Determination ® Define Set of Rules.

Using an additional field, define your accounts per accounting principle.

•  Portrayal Using Parallel Ledgers:

You have assigned the ledger group to the accounting principle.

Manual postings

If you perform parallel accounting using parallel ledgers, you can make accruals postings using manual postings. For the accruals postings, you use the following function in General Ledger Accounting:

From the SAP Easy Access screen, choose Accounting ® Financial Accounting ® General Ledger ® Posting ® Enter General Posting for Ledger Group.

Provisions

Different accounting principles frequently have a different valuation approach for provisions. To post provisions, you have the following options in Financial Accounting:

• For materials or services that you have already received, you create provisions if the invoice is posted in a different period to the goods receipt or the service. You generally have to post these provisions manually. You therefore perform a manual posting for each accounting principle.

• You can post provisions for doubtful receivables automatically using the flat-rate individual value adjustment. In Customizing, you assign a value adjustment key to a valuation area.

To do this, in the Implementation Guide for Financial Accounting (New), choose Accounts Receivable and Accounts Payable ® Business Transactions ® Closing ® Valuate ® Valuations ® Define Value Adjustment Key. You then define this value adjustment key in the customer master record.

For more information, see the documentation of the IMG activity.

• You can determine and post provisions for probable losses and uncovered costs for long-term orders and products using the results analysis function in Controlling.

For more information, see Parallel Accounting in Controlling.

Parallel Accounting and Currencies

Use

If you use parallel accounting, you can portray your valuations and closing operations in two parallel currencies. This means that you can perform parallel accounting according to two different accounting principles and in two different currencies.

You can perform your valuations and closing operations for a German subsidiary of an American group as follows:

Accounting Principle Currency

HGB (local accounting principle) EUR

US GAAP (group accounting principle) USD

The currency of the company code (local currency) must be the national currency. This setting is necessary for various functions, such as reporting.

Features

If you want to perform your valuations and closing operations according to parallel accounting principles and in parallel currencies, you can define - in addition to the local currency - a parallel currency (group currency) in the parallel ledgers.

This means that you run the parallel currency in all processes and functions in Financial Accounting.

For more information, see Managing Parallel Currencies in Parallel Ledgers.

Managing Parallel Currencies in Parallel Ledgers

Use

In Financial Accounting, in addition to the local currency, you can define a maximum of two parallel currencies for your company code. Since the settings of the company code are transferred for the leading ledger, your leading ledger is also managed in these parallel currencies as well as the local currency in this case. You can only specify the parallel local currencies specified in the leading ledger as parallel currencies in the non-leading ledgers. Alternative currencies are not possible.

If you require more than three currencies, you can portray these currencies in the component Special Purpose Ledger (FI-SL).

You can use various currency types for the parallel currencies. You define the currency of a currency type when you define the organizational units.

• Group Currency

You define the group currency when you define your client.

• Global Company Currency

You define the global company currency when you define the company assigned to your company code.

• Hard Currency

You define the hard currency when you define the country assigned to your company code.

• Index-Based Currency

You define the index-based currency when you define the country to which your company code is assigned.

Features

If you manage your ledgers in parallel currencies, this has the following effects:

• During posting, the amounts are also saved in the parallel currencies. The amounts are translated automatically, but you can also enter them manually.

• Transaction figures for the G/L accounts are also updated in the parallel currencies.

• Exchange rate differences during clearing also appear in the parallel currencies.

• You can also perform a foreign currency valuation in the parallel currencies.

Activities

To run the parallel currencies for all processes and functions in Financial Accounting, in Customizing for Financial Accounting (New), choose Financial Accounting Global Settings (New) ® Ledgers ® Ledgers:

• Define Currencies of Leading Ledger

• Define and Activate Non-Leading Ledgers

Here you can specify the second and third local currency for your non-leading ledgers.

The following restrictions apply to the parallel currencies:

• You can use a maximum of three parallel currencies (also the second local currency and third local currency).

• The second and third currency of the parallel ledgers must be a currency that is managed as second or third currency in the respective company code. These currencies are transferred to the leading ledger. You can only specify the parallel local currencies specified in the leading ledger as parallel currencies in the non-leading ledgers. Alternative currencies are not possible.

Migration to New General Ledger Accounting (General)

Purpose

New General Ledger Accounting has the following advantages:

● Integration of managerial and financial accounting, including segment reporting

● Easy extensibility

● New procedures for parallel accounting

● Acceleration of period-end closing (fast close)

● Improved transparency

● Corporate governance

● Reduced ongoing costs

Many different migration scenarios are imaginable for the transition from classic General Ledger Accounting to New General Ledger Accounting, ranging from the straightforward merge of existing ledgers to a totally new conception of accounting, such as the introduction of segment reporting for compliance with new accounting principles. In particular in the case of a new conception of accounting, there are two aspects to the transition to New General Ledger Accounting: a conceptual business part and a technical part dealing with the migration of the existing accounting data to the new structures for General Ledger Accounting.

Prerequisites

The prerequisite for the migration from classic General Ledger Accounting to New General Ledger Accounting is the successful upgrade of your SAP system to mySAP ERP 2005.

Employees involved in the migration project need to have attended the AC210 course or have equivalent knowledge.

Implementation Considerations

The new features relate to very extensive changes, the transition to New General Ledger Accounting is very complex, and the data volume involved should not be underestimated. A comprehensive analysis of your situation at the outset and the detailed planning of the migration are crucial to the success of the migration.

We therefore recommend setting up an individual project for the migration, entailing project phases, milestones, and so forth, and taking the appropriate steps to ensure sufficient testing and training.

Preparing and performing the steps relating to the technical part of the migration of the data is of central importance for such a project and must be conducted with extreme caution and thoroughness to ensure that the principles of orderly accounting are still upheld after the migration.

To achieve a high degree of safety in this respect, SAP accompanies each migration project with a migration service. This technical service relates to the standard migration scenarios and is provided in the form of migration packages. The service is realized using the New GL Migration Back Office that has been specially set up for this purpose. Once the customer has ordered the service, the migration functions will then be made available.

Features

The migration packages cover the following services:

● Validation of the migration scenarios selected

● Scenario-based migration programs

● Preconfigured Customizing settings for the migration

● Consistency check of the migration Customizing settings against the target Customizing settings in New General Ledger Accounting

● Technical consistency check of the migrated data in test systems and live systems

● Support throughout the duration of the project with technical matters via the New GL Migration Back Office

The migration packages offer the advantage that they guide you step by step through the migration of your data, specific to your scenario. The standardized procedure – together with the technical support provided throughout the duration of the project by SAP specialists via the New GL Migration Back Office – contributes significantly towards optimizing the migration projects.

In addition to the technical support provided by this service, you can also obtain further consulting support from your SAP international subsidiary for the business part of the project, such as for the new conception of accounting, or for the individual reviews of the blueprint or the project plan.

Notes on this Documentation

This documentation is not intended to provide details on the functions in New General Ledger Accounting; instead, it deals with specific matters relating to the migration.

Furthermore, this documentation does not cover all possible scenarios; instead, it concentrates on the common standard scenarios that are supported by SAP. Any scenarios that differ from these standard scenarios have their own individual complexity, which prevents a standard description from applying to them. Such scenarios are migrated on a project-by-project basis and require additional steps.

This documentation describes the individual phases of a migration and the analysis of your situation at the outset and provides a description of the common scenarios. A migration guide is provided for these common scenarios.

Master Data

Definition

Master data is the data used to portray the units in General Ledger Accounting that remain unchanged over long periods.

Structure

The master data in General Ledger Accounting comprises the following objects:

• G/L Account Master Data

The G/L account master records control the posting of accounting transactions to G/L accounts and the processing of the posting data.

• Profit Center Master Data

Profit center The G/L account master records control the posting of accounting transactions to G/L accounts and the processing of the posting data.

Profit Center Accounting is integrated in new General Ledger Accounting.

• Segment

Division of a company for which you can create financial statements for external reporting.

Integration

Updating

You can make identical settings for updating segments and profit centers as well as the relevant partner information in the ledgers of the new General Ledger. In this way, you can also use the same reporting for both organizational units. For example, you can create a profit and loss statement for each segment and profit center.

Hierarchies

You can create hierarchies for profit centers. In this way, you can display the posted documents of several profit centers as a joint result for a higher area of responsibility. You can use sets to define the hierarchies for the segments.

Functions

In general, you have access to functions such as document splitting, assessment, distribution, and planning for both organizational units, encompassing the same functionality. For closing activities such as foreign currency valuation, sorted lists, or balance carryforward, the segment and profit center information remains intact in the same way.

G/L Account Master Data

Definition

G/L account master records contain the data that is always needed by the General Ledger to determine the account's function. The G/L account master records control the posting of accounting transactions to G/L accounts and the processing of the posting data.

Use

Before you can make postings to a G/L account, you have to create a master record in the system for the account.

Structure

G/L account master records are divided into two areas so that company codes with the same chart of accounts can use the same G/L accounts.

• Chart of accounts area

The chart of accounts area contains the data that is valid for all company codes, such as the account number.

• Company code specific area

The company code specific area contains data that may vary from one company code to another, such as the currency in which the account may be posted.

Integration

In the standard system, all business transactions which are posted to G/L accounts are updated in the general ledger. Additionally, you can define further ledgers to which data can also be posted. For this, you need to implement either new General Ledger Accounting or Special Purpose Ledger.

Environment: G/L Account Master Records

The following objects play a central role in the creation and management of master records:

• Chart of Accounts List

• Chart of accounts

• Account group

The sample account and the data transfer rules are optional and provide special functions. The following figure gives an overview of these objects.

• The chart of accounts list contains all of the charts of accounts that you support within a client.

• The chart of accounts in the SAP system is a list of all G/L account master records which are used in one or several company codes. For every G/L account master record, the chart of accounts contains the account number, the account name and controlling information.

• The sample account and the data transfer rules determine which field values are predefined when creating a G/L account master record and whether these values can be overwritten.

• The account group is a summary of characteristics that control the creation of master records. You can use it to determine which fields must or can be filled when creating the master record. In addition, it can be used to predefine a number interval, from which the numbers for the master records should be chosen. Accounts that require the same master record fields and use the same number interval are created with the same account group.

• The G/L account master record in the company code contains company code-specific information which controls the entry of data to this account and the management of the account.

Chart of Accounts List

Definition

The chart of accounts list is a directory of all charts of accounts that can be used in a client.

Use

You enter all the charts of accounts that you require for your company in this list. To do this, in the Financial Accounting Implementation Guide, choose General Ledger Accounting  G/L Accounts  Master Data  Preparations  Maintain Chart of Accounts List.

In the FI system, you can use as many charts of accounts as you require within a client. You can thus meet the varying needs of the individual company codes regarding the chart of accounts structure. The following characteristics of the individual company codes could, for example, place various demands on how the chart of accounts is set up:

• Location (country)

• Branch

• Corporate structure

• Corporate size

• Legal requirements

However, several company codes can also use a common chart of accounts if a different grouping of the chart of accounts is not required.

You must assign one chart of accounts to each company code. You therefore need at least one chart of accounts for your company in the system.

The chart of accounts is shared by Financial Accounting as well as cost/revenue accounting. The items in a chart of accounts can be both expense or revenue accounts in Financial Accounting and cost or revenue elements in cost/revenue accounting.

Structure

If you enter a chart of accounts in the chart of accounts list, note the importance of the following settings:

• Maintenance language

The chart of accounts is created and changed in one language, the maintenance language. This means that the names of the G/L accounts are created and changed in the maintenance language. If the chart of accounts is used by multiple company codes using varying languages, you can translate the account names into the languages needed. For more information on this, see Translating a Chart of Accounts.

• Group chart of accounts

You can assign an alternative group chart of accounts to the chart of accounts. For more information, see Chart of Accounts.

• Length of the G/L account number

You can define the length of the G/L account numbers. The maximum length is ten characters. Internally, the system keeps the account numbers with a ten character length. The system pads purely numeric account numbers with zeroes from the left, and alphanumeric account numbers from the right.

To change the chart of accounts list, read Changing the Chart of Accounts List.

Chart of Accounts

Definition

This is a list of all G/L accounts used by one or several company codes.

For each G/L account, the chart of accounts contains the account number, account name, and the information that controls how an account functions and how a G/L account is created in a company code.

Use

You have to assign a chart of accounts to each company code. This chart of accounts is the operating chart of accounts and is used for the daily postings in this company code.

You have the following options when using multiple company codes:

• You can use the same chart of accounts for all company codes

If the company codes all have the same requirements for the chart of accounts set up, assign all of the individual company codes to the same chart of accounts. This could be the case if all company codes are in the same country.

• In addition to the operating chart of accounts, you can use two additional charts of accounts

If the individual company codes need different charts of accounts, you can assign up to two charts of accounts in addition to the operating chart of accounts. This could be the case if company codes lie in multiple countries.

The use of different charts of accounts has no effect on the balance sheet and profit and loss statement. When creating the balance sheet or the profit and loss statement, you can choose whether to balance the company codes which use different charts of accounts together or separately.

Structure

Charts of accounts can have three different functions in the system:

• Operating chart of accounts

The operating chart of accounts contains the G/L accounts that you use for posting in your company code during daily activities. Financial Accounting and Controlling both use this chart of accounts.

You have to assign an operating chart of accounts to a company code.

• Group chart of accounts

The group chart of accounts contains the G/L accounts that are used by the entire corporate group. This allows the company to provide reports for the entire corporate group.

The assigning of an corporate group chart of accounts to a company code is optional.

• Country-specific chart of accounts

The country-specific chart of accounts contains the G/L accounts needed to meet the country's legal requirements. This allows you to provide statements for the country's legal requirements.

The assigning of an country-specific chart of accounts to a company code is optional.

Integration

The operating chart of accounts is shared by Financial Accounting as well as Controlling. The accounts in a chart of accounts can be both expense or revenue accounts in Financial Accounting and cost or revenue elements in cost/revenue accounting. You can find additional information on this subject under Cost Accounting and Chart of Accounts.

Cost Accounting and Chart of Accounts

You have to assign an operating chart of accounts to each company code. Cost accounting also uses this chart of accounts, that is, the accounts of the operating chart of accounts can be revenue and expense accounts in Financial Accounting and can be cost or revenue elements in cost accounting.

If your organization consisting of multiple company codes (such as a global company) needs various chart of accounts, you should note that cost account is only connected to the operating chart of accounts. How you organize your chart of accounts depends on the hierarchy level at which you want to carry out cost accounting.

You have two basic methods for organizing your chart of accounts.

• Central organization

At the corporate group level, a chart of account is defined which contains all accounts and can be used by all company codes. This chart of accounts is the operating chart of accounts for all company codes. To meet specific country requirements, you can enter an additional (country-specific) chart of accounts for each company code.

Advantage: Cross-company code cost accounting is possible. Consolidation is carried out using the operating chart of accounts, which is the corporate group chart of accounts.

Disadvantage: The accountants cannot work with their own country-specific charts of accounts.

• Decentral organization

Each company code uses its country-specific chart of accounts as the operating chart of accounts. For consolidation, you enter the corporate group chart of accounts additionally for each company code.

Advantage: The accountants can work in their own country-specific charts of accounts. You cannot consolidate data using the corporate group chart of accounts.

Disadvantage: Cross-company code cost accounting is not possible.

Organization of the chart of accounts Cost accounting Charts of accounts

Corporate group chart of accounts Operating chart of accounts Country-specific chart of accounts

Central Cross company code Corporate group chart of accounts For local requirements

Decentral At the company code level For corporate group requirements Country-specific chart of accounts

G/L Master Record in the Chart of Accounts

Definition

G/L account master data in the chart of accounts area contains information about the G/L account that is valid for all company codes. The chart of accounts area also contains data that controls how a G/L account is created in the company code-specific area.

Use

To make certain that company codes using the same chart of accounts can also use the same G/L accounts, a master record is created for the G/L account in the chart of accounts and in the company code-specific areas.

Structure

The following information is contained in the chart of accounts area of a G/L account master record.

• The chart of accounts

• The account number and account name (short and long text)

• The indicator that specifies whether the account is a balance sheet account or an P&L statement account.

At the start of a new fiscal year, the balance of a balance sheet account is carried forward to itself. With P&L statement accounts, you must specify the account to which the profit or loss is carried forward at the end of a fiscal year.

• The account group

With the account group, you group similar accounts together and control the creating and changing of master records. They control

o The account number interval in which the account number must lie.

o The screen layout for creating G/L accounts in the company code-specific area. This means that you can define whether fields require an entry, may have an entry, or are hidden when creating or changing a master record in the company code-specific area.

You defined the account groups prior to creating G/L accounts. For more information, read Account Group

• Entries which are necessary for consolidation are trading partner and group account number.

Account group

Definition

The account group is a summary of accounts based on criteria that effects how master records are created.

The account group determines:

• The number interval from which the account number is selected when a G/L account is created.

• The screen layout for creating G/L accounts in the company code-specific area

Use

When you create a G/L account in the chart of accounts area, you must specify an account group.

Using the account group, you can group the G/L accounts according to functional area.

For example, you can group all bank accounts, postal giro accounts, and cash in the account group FIN. for "liquid funds".

The account group also defines the set up when creating a G/L account in the company code and chart of accounts. By defining the number interval and the screen layout, you simplify G/L account creation by reducing the number of entry fields.

The account groups are entered in Customizing per chart of accounts. You do this in Financial Accounting Customizing under General Ledger Accounting  G/L Accounts  Master Data  Preparations  Define Account Group.

Structure

The account group contains the following definitions:

• Number interval

Standard charts of accounts are recommended in most countries. These are generally created so that the numbers of accounts belonging to the same functional area begin with the same digits. You use the account group in the chart of accounts to indicate this grouping principle. For more information on this, see Defining Number Ranges.

• Screen Layout

The accounts within a functional area require the same fields for storing information when entering and processing business transactions. Using the account group, you define the fields needed for each functional area and the form needed. For more information on this, see Defining the Screen Layout.

Make certain you define the field status when defining an account group. Otherwise, all fields are hidden. For more information, see Field Status Definition

Defining the Number Interval

Use

Standard charts of accounts are recommended in most countries. These are generally created so that the numbers of accounts belonging to the same functional area begin with the same digits. You use the account group in the chart of accounts to indicate this grouping principle.

When you define an account group, you also determine the number interval in which the accounts of this group must lie. When creating a G/L account, the system checks whether the number you entered lies in the predefined number interval.

The account numbers of bank accounts, postal giro accounts, and cash accounts begin with the number 1. The accounts in account group "Liquid funds accounts", to which all of these accounts belong, all lie in the number interval between 100000 and 129999.

If you create a G/L account with this account group, you must select a number from this number interval. Account number 131000 for G/L account petty cash would be rejected as incorrect since it does not fall within the number interval of account group "Liquid funds". However, you could create this account using the account number 101000.

The number intervals for G/L account groups can overlap. As a result, for G/L accounts that you do not want to assign to any special functional area, you can create a separate account group that has a number interval already contained in a different account group.

Integration

You can change the number interval of an account group at a later time. For more information, see hierzu Changing the Account Group.

Prerequisites

In the chart of accounts list, you define the length of the account numbers for the entire chart of accounts. The maximum length is ten characters. For more information, see Chart of Accounts List.

Features

You have the following options when assigning account numbers.

• You can reassign the account numbers of G/L accounts that were previously deleted.

• You can assign alpha-numeric account numbers.

In order to have an orderly display of the account numbers, you should note the following points.

• Equal length

Always use account numbers of the same length.

• Do not mix alphanumeric and numerical account numbers.

Use either alphanumeric or numerical account numbers. The system pads purely numeric account numbers with zeroes from the left, and alphanumeric account numbers from the right.

113000  0000113000

1131DB  1131DB0000

Activities

To define the number interval for an account group, from Financial Accounting Customizing choose General Ledger Accounting  G/L Accounts  Master Data  Preparations  Define Account Group.

Defining the Screen Layout

Use

The account group in which you can combine G/L accounts of a similar type determines the screen layout when creating G/L accounts in the company code-specific area. For each account group, you determine the screen layout, that is, you determine which fields are relevant for this group of G/L accounts.

For each field, you can assign the field status. This is important when creating G/L account master records in the company code-specific area. To preclude the need to give every field a status, fields are combined into field groups.

You can assign the following field statuses to the fields of a field group.

Field status Description

Required entry This field requires an entry when creating a G/L account

Optional entry You may make an entry in this field when creating a G/L account

Display The field is displayed, but you cannot make an entry in it.

 You should not use this status, since the fields should be available for entry when creating

Suppressed The field is not displayed, that is, you do not see the field when creating a G/L account.

If you do not assign a field status, the field status "Suppress" is automatically used.

Features

The screen layout does not only effect the creation of G/L accounts in the company code-specific area, but also the changing G/L account master records. When you make changes, the system always uses the current definition. For more information, see also Changing the Account Group.

The fields "Currency" and "Field status group" require an entry. These fields must be contained in the master record of the G/L account.

Activities

To define the screen layout, in Financial Accounting Customizing choose General Ledger Accounting  G/L Accounts  Master Data  Preparations  Define Account Group.

You set the field status by selecting the required field status for each field group:

G/L Account Master Records in the Company Code

Definition

The company code specific area of a G/L account contains data that is only valid for one company code, such as the currency in which the account may be posted.

Use

Before you can make postings to a G/L account, you have to create a master record in your company code for the account. The G/L account must already be in the chart of accounts. For more information, see G/L Account Master Records in Chart of Accounts.

Structure

When creating a G/L account in a company code, you have to make several specifications. These specifications are saved in the G/L account master record and will affect future transactions, such as postings to this G/L account.

Some of the specifications have serious impact on future work and are described in the following sections. Before you make your specifications, you should read these sections.

Segment

Definition

Division of a company for which you can create financial statements for external reporting.

Use

The accounting principles US GAAP and IFRS require companies to perform segment reporting. You can define segments in your SAP system for this purpose. You find the appropriate IMG activity in Customizing under Enterprise Structure ® Definition ® Financial Accounting ® Define Segment.

You can enter a segment in the master record of a profit center. The characteristic Segment is only released in combination with the characteristic Profit Center. If no segment is specified manually during posting (only possible for transactions in Financial Accounting), the segment is determined from the master record of the profit center. This profit center can also be assigned manually or derived.

If you want to apply different rules to derive the segment during posting, you can define your own rules for this. You find the corresponding settings in Customizing under Financial Accounting (New) ® Financial Accounting Global Settings (New) ® Tools ® Customer Enhancements ® Business Add-Ins (BAdIs) ® Segment Derivation.

The document splitting procedure is the prerequisite for creating financial statements at any time for the Segment dimension. For this, you need to set up a zero balance setting for the Segment characteristic. You find the document splitting settings in Customizing under General Ledger Accounting (New) ® Business Transactions ® Document Splitting.

Structure

US GAAP and IAS set out different requirements regarding segment reporting:

US GAAP requires a virtually complete balance sheet at the segment level for segment reporting (essentially everything apart from stockholders' equity). The segment is defined as a subarea of a company with activities that generate expenses and revenues, with an operating result that is regularly used by management for profit assessment and resource allocation purposes, and for which separate financial data is available.

You can use the Segment dimension to represent the segment levels.

IAS requires for segment reporting primary and secondary segmentation, which have different reporting depth. A distinction is made between the following types of segment:

• Business segment

A business segment is a distinguishable subactivity of a company that relates to the manufacture of a product or the provision of a service and that has risks and revenues that differ from those in other business segments.

• Geographical segment

A geographical segment is a distinguishable subactivity of a company that relates to the manufacture of a product or the provision of a service within a specific field of business. The risks and revenues of a geographical segment differ from the subactivities in other fields of business.

You can choose which segment type you want to have as the primary or the secondary segmentation. You can use the Segment dimension for the primary segmentation. You can represent the secondary segmentation in your system. You can do this by including a user-defined field Region in your general ledger accounting, for example.

Business Transactions

Purpose

You use this component to post and edit your business transactions. A business transaction is a business event that implies a change quantity or value. Business transactions are transaction data that is reflected in accounting by means of postings.

Features

This component comprises the following functions, among others:

• Post

You post business transactions to G/L accounts, for example, in General Ledger Accounting. For this, the system generates a document. With document splitting, you can, for example, split up the documents according to selected characteristics and then create the financial statement and profit and loss statement on the basis of these characteristics.

You can also transfer posting data that is relevant for General Ledger Accounting from Controlling into General Ledger Accounting in real time.

• Clear

You can post open items with clearing or clear an account manually. If the balance is zero, the account is considered cleared.

• Reversal

If you have entered a document that is incorrect, you can reverse the document. In this way, the open items are cleared.

• Manual Accruals

You can use manual accruals to automatically calculate and post accruals. Furthermore, the functions in manual accruals support the use of parallel accounting.

• Internal Correspondence

You can use these functions to create and edit internal evaluations such as the internal documents.

Former Member
0 Kudos

Hi Kumar,

Following link might help u

http://help.sap.com/saphelp_erp2005vp/helpdata/en/43/3af0065b3809c2e10000000a1553f6/frameset.htm

Assign points if useful

Thanks, Ashok