NEW GL presentation By :Naresh Kumar Das

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Contents

IntroductionLedger DefinitionDocument SplittingReal-time IntegrationPeriodic ProcessingParallel ProcessingReportingMigration

Introduction There are number of changes in SAP functionality in ECC6.0 in comparison to SAP R/3 Enterprise (4.7). We have tried to snap only the major changes relevant for the FI/CO. This will give an idea about how ECC6.0 has been well developed and designed incorporating all the features of R/3 Enterprise. The major changes relevant for FI/CO are appended below:

In my ECC 6.0 we can implement new General Ledger Accounting in place of classic General Ledger Accounting. To implement new General Ledger Accounting , it has to be activated in IMG activity. After activation of it , a new menu for financial accounting appears in SAP Reference IMG. Under Financial Accounting (New) and General Ledger (New) , Customizing setting can be found for configuring new General Ledger Accounting. It contains all the functions delivered with classic General Ledger Accounting.

In addition to existing functions, new General Ledger Accounting has the following other features :

Introduction The new General Ledger accounting allows us to perform parallel accounting. We can render multiple ledgers in parallel. It means we can have data posted to all ledgers, to a specified selection of ledgers, or to a single ledger. The new General Accounting fulfills the requirement of both legal as well as management reporting. For the purpose of management reporting, the range of functions delivered with profit center accounting is integrated into new General Ledger Accounting ( except transfer pricing). The new General ledger Accounting contains the new Segment dimensions. It means we can generate the segment reports required for IAS and/or US GAAP. We can perform cost of sales accounting. For this purpose, new General Ledger Accounting contains the Functional Area dimension. To meet the above requirements, new General Ledger accounting provides the following additional functions:

Introduction Extendable Data Structure: There is a option of extending the data structure in new General Ledger Accounting by adding customer-specific fields, e.g. Region dimension. During posting we can either enter customer-specific dimensions manually or have them derived automatically. Document Splitting: Document splitting procedure can be used to split up line items for selected dimensions ( such as receivable by Business area) or to effect a zero balance setting in the document for selected dimensions (such as segment). For this purpose, additional clearing lines are generated when a document is entered. This procedure ensure to draw up complete financial statements for the selected dimensions at any time. Real-Time Integration with CO: The allocations that are relevant for General Ledger Accounting can be transferred from Controlling to General Ledger Accounting in real time. In this way there is no need to keep reconciliation ledger. General Ledger Accounting is then constantly reconciled with Controlling.

Possibilities with New General Ledger Accounting

Segment reportingReal Time Integration CO => FITransparency and ConsistencySimpleRepresentation of ParallelaccountingAccelerated Period End ClosingLegal andManagement reportingStd Enhancement & Extensibility(With custom fields)Financial reportingusing anycharacteristic(Document splitting)

General Ledger in R/3 Enterprise

General Ledger in ECC 6.0New General Ledger Accounting

New General Ledger Accounting: One Component Lots of Functions

New General Ledger Accounting: One Component Lots of Functions R /3 customers have to install and operate a range of components in order to meet international and /or industry-specific requirements and standards as completely as possible. In fact, the situation is becoming more complex, because service companies (in the public sector, insurance ,and media sectors, for example) are demanding balance sheets based on additional criteria such as grant ,fund ,or industry.

Of course ,the increasing importance of IAS as accounting rules is also boosting demand for better quality and modeling of segment reporting.

What's more, a unified solution would also be useful to deal with the requirements for Fast Close, Sarbanes-Oxley and reduced TCO (=>Total Cost of Ownership).

General Ledger in R/3 Enterprise

General Ledger supportsLegal requirementsMgmt. and Segment reporting Extensibility by industriesExtensibility by customersBalanced books for any dimension Parallel sets of books Fast closeIntl. accounting standardsCompliance & transparency

General Ledger in ECC 6.0

Comparison of GL in R/3 Enterprise and ECC 6.0

Parallel ValuationLedger approach (ledger groups)New transactions to post in

particular ledgersNew financial statement reports

Key features of the new G/LFAGLFLEXTAdditional Fields

Segment, PC, FA ,Cost Center, etc.Customer Fields

WBS element, OrderDocument Splitting Set of splitting methods and rules Online split of follow up costs Zero-Balancing functionality

Improved IntegrationReal-time CO/FI InterfaceAsset Accounting (incl. AuC)Inventory ManagementConsolidation

Totals Table FAGLFLEXT New General Ledger in ECC 6.0

One look at the database table makes the primary standard extension of the data structure visible immediately:Classic LedgerTotal table GLTOSelection of Available Fields:New General LedgerTotal table FAGLFLEXTSelection of Available Fields:

FieldShort textRYEARFiscal YearRACCTAccount NumberCOST_ELEMBUKRSCost ElementCompany CodeRCNTRCost CenterPRCTRProfit CenterRFAREAFunctional AreaRBUSABusiness AreaSEGMENTSegment

FieldShort textBUKRSCompany CodeRYEARFiscal YearRACCTAccount NumberRBUSABusiness Area

Benefits of New General Ledger Accounting Overview

New General Ledger Accounting in ECC 6.0 has the followingadvantages compared to classic General Ledger Accounting (such as inR/3 Enterprise):New General Ledger Accounting has an extended data structure in the standard delivery. Customer fields can also be added to the general ledger.With (real-time) document splitting, balance sheets can be created for entities , such as "Segment".You can run a real-time reconciliation of Management Accounting (CO) and

Financial Accounting (FI) - there is the real-time integration with Controlling.This renders time-consuming reconciliation tasks obsolete!New General Ledger Accounting makes it possible to manage multiple ledgers within General Ledger Accounting. This is one of the possible ways of portraying parallel accounting in the SAP system.

Ledger Definition

Activating the new general ledger

Familiarization with the new totals table FAGLFLEXT

Assigning and importance of scenarios

Entry view and general ledger view for Financial Accounting documents

The segment characteristic

Deriving the segment

New General Ledger Accounting

With mySAP ERP Central Component, the SAP system offers in the Financials area an interesting alternative in General Ledger Accounting.

Do companies have to use New General Ledger Accounting ?

It will be optional for existing customers. You will not be obliged to activate New General Ledger Accounting. During a release upgrade (to mySAP ERP), classic General Ledger Accounting (using totals table GLT0) remains active at first.

For new installations, New General Ledger Accounting is active by default in mySAP ERP.

New Menu Paths After Activation

NOTE: The activation flag is set in each client. This will result in wide changes to the application menu, screens and customizing paths.

To help you find your way around, the conventional Financial Accounting paths will initially remain available in their present form.

Once you have become familiar with the paths for the new general ledger accounting, you can run program RFAGL_SWAP_IMG_OLD to hide the old Financial Accounting paths.

Activating the new general ledger also makes several new nodes available in the application and the SAP Easy Access menu

Ledger DefinitionSAP provides the leading ledger 0L and totals table FAGLFLEXT with the standard system.The leading ledger gets many of its control parameters (as before)

form the company code we tried to keep everything as familiar aspossible specifically:The leading ledger manages the (additional) local currency (currencies) that is (are) assigned to the company code.The leading ledger uses the fiscal year variant that is assigned to the company code.The leading ledger uses the posting period variant that is assigned to the company code.Special features of the leading ledger:There is exactly one leading ledger . Only the values from the leading ledger are posted to CO in the standard system !

Ledger Definition

Leading LedgerIn New G/L, there is One leading ledger for each client that is valid

for all company codes. An important decision to make is whichAccounting Standard to use in the leading ledger. This assignment cannot be deactivated once it has been defined.You can define only one ledger as the leading ledger .SAP provides the leading ledger 0L as standard.

The IAS ledger in client 800 as an exampleof a leading ledger for company codes 1000, 2000, 3000, and 4000.

Leading Ledger IAS

Company Code 1000 Company Code 2000 Company Code 3000

Integration with Sub modules

CO

FILeading Ledger IAS

MM

SD

AR

BL

AA

AP

Activating New General Ledger

The new General Ledger is activated automatically in initial installations.

If the existing customers want to use the new General Ledger they need to activate it using transaction in customizing(=>FAGL_ACTIVATION)

Assigning Leading Ledgers

Total Table FAGLFLEXT

New Menu Paths After Activation

FAGLFLEXT - Single Source of Information in New General Ledger

Business RequirementFAGLFLEXT

New General Ledger in mySAP ERP

Scenarios Definition and Assignment

What is scenario definition?A scenario defines which fields are updated in the ledgers (in the general ledger view) during a posting (from other application components).

Scenarios Definition and Assignment

Scenarios Definition and Assignment

Scenarios Definition and Assignment The fields that are updated by the scenarios can be used to model certain business circumstances such as segment reporting.

The provided scenarios are generally assigned to the Ledgers (You cannot define your own scenarios)

Note: A ledger can be assigned to one or more scenarios or even all six at once but generally depends on facts/business aspects you want to model in the GL.

Multiple/non-leading ledgers are useful for modeling different accounting rules.

How to define Ledgers for General Ledger Accounting

Assigning ScenariosIn addition to the leading ledger, you can also define other, non-leading ledgers( Parallel Account). The non-leading ledgers can then be assigned alternate currencies and/or fiscal year variants that differ from the leading ledger.

When New General Ledger Accounting is active, a financial accounting document always has two views: Aside from the Leading Ledger you may also see the document in other, Non leading Ledgers with in General Ledger View.Entry view and General Ledger view

Entry view

It is a view of how a document also appears in the sub-ledger views / sub-ledgers (AR/AP/AA/Taxes)

General Ledger view

It is a view of how a document appears (only) in the general ledger.

Entry view and General Ledger view

Account BalancesFinancial StatementGLCustomer Line Item DisplayAsset VenderCustomer Asset VenderS_PLO_86000030FAGLB03 (new)FK10NFD10NAW01N (Individual)S_ALR_87011963S_PLO_86000028 (a/a) (new)FGI3 (own reports)Drill-DownS_ALR_87011970FAGLL03 (new)FBL3NFB03FBL1NFB03FBL5NFB03AB03GL

Entry view (Scenarios Assignment and Functions I)Modeled situation: Entry view of an FI document (=> the view when posting thedocument), without assignment of scenarios to a ledger.

General Ledger view (Scenarios Assignment and Functions II)Modeled situation: General ledger view of an FI document, without assignment of scenarios to the leading ledger 0L!

General Ledger view (Scenarios Assignment and Functions III)Modeled situation: General ledger view of an FI document, with previous assignment of scenarios "Annual Report" and "Cost Center Update" to the leading ledger.

The Segment field is one of the standard account assignmentobjects available in ECC 6.0 for running analyses for"objects" below the company code level.The objective is to give a detailed look at the various businessactivities (=> markets or products in general: activity areas) at a(broad-based) enterprise - Keyword: segment reportingAlternative account assignments used in the past: Profit Center Business Area Profitability segment

Alternative account assignments

Deriving a segment

Displaying the "Segment" Entity in an FI Document Display To post, analyze, and display document segments in New General Ledger Accounting, you have to perform the following steps:Definition of the scenario: The scenario Segmentation has to be defined for the leading ledger (and for any other non-leading

ledgers) if it is not, the segment is only visible in the entry view.Define the segments.Derive the segments The standard SAP system supports derivation from profit centersMaintain the field status variant and/or field status groups of the corresponding FI accounts: The Segment field (=>

group Additional Account Assignments) must be defined as an "optional entry" *Maintain the field status of the corresponding posting key: The above statement also apples. *Display the Segment field using the Layout (icon ) in the document display

Display the Segment entity in an FI Document

General Ledger in SAP Reconciliation LedgerCO-PACO-OMCoGS LedgerFI-SLCons. StagingEC-PCA

Profit Center DeterminationOn line Document Splitting: Accounting based on freely Selectable charactersDerivation of CharacteristicCurrency ConversionZero BalancingAccounting Interface

New G/L uses a broad, unified data basis, so that G/L account,functional area, and profit center are contained in a single data record.This enhances data quality and obviates the need for reconciliation measures (previously, the reconciliation ledger had to be used to reconcile CO with FI). The period-end closing now can be completed more quickly.Thus, using New G/L removes the need to use several separate components

Contents

Motivation of splitting

Splitting functions

Activating splitting

Defining splitting characteristics

Inheritance in the splitting framework

Example postings with splitting

Document Splitting OverviewNew General Ledger (or new G/L) in the SAP ERP system offers a powerful feature known as document splitting With document splitting, accounting line items are split according

to specific characteristics For example, Profit Center, Segment

This way, you can create financial statements for entities such asSegments and meet legal requirements For example, International Accounting Standards (IAS)

requirements for segment reportingIAS 14 relates to segment-level financial reporting. The key objectiveis to report financial information by lines of business and/or by geographical areas.

Document Splitting OverviewSample Financial TransactionLet me illustrate the concepts of document splitting using a simple financial transaction of Vendor Invoice

Vendor Invoice of $11,000.00 for two purchases and taxesTwo purchases belong to two different profit centersThis document is not balanced for a characteristic Profit Center You cannot analyze the financial transactions for individual

profit centers You cannot identify the amount of, for example, Input Tax for

each profit centerSimilarly, this document is not balanced for Vendor A/C

Account DescriptionAmountProfitCenterVendor A/C-11,000Purchases 18,000PC-1

Purchases 22,000PC-2

Input Tax1,000

Document Splitting OverviewLets look at the purchases more closely the Profit Center

ratios for purchasesThe total purchases were in the ratio of 80%-20%

TotalVendor A/C$11,000PC 1PC 280%20%80%80%PC 1$8800PC 2$2200PC 1$800PC 2$20020%20%Input Tax$1,000

Document Splitting OverviewAlternative ways to post Vendor InvoiceComparison of Vendor Invoice DocumentsBoth documents are financially balanced total net zeroDocument #1 is not balanced for Profit CenterDocument #2 is balanced for Profit Center

Document splitting in the new G/L New G/L offers AUTOMATIC document splitting Instead of analysts manually splitting the accounting items,system automatically splits the documentYou can configure the rules for document splitting

Document 1 Not Balanced for Profit CenterAccount Description AmountProfitCenterVendor A/C-11,000Purchases 18,000PC-1Purchases 22,000PC-2Input Tax1,000

Document 2 Balanced for Profit CenterAccount Description AmountProfitCenterVendor A/C-8,800PC-1Purchases 18,000PC-1Input Tax800PC-1

Account Description AmountProfitCenterVendor A/C-2,200PC-2Purchases 22,000PC-2Input Tax200PC-2

Document Splitting - Motivation

Available functions in the SAP system (Release SAP ERP Central Component5.0 and later) to create segment financial statements: The Segment field is a standard field in the totals table for New General Ledger Accounting (FAGLFLEXT)New FI drilldown reporting functions let you create segment

financial statements

Requirement: Example: Posting w/diff. segment assignment

Assumptions for document splitting

Assumptions for Document Splitting:The operative process (of document entry) must not be disturbed (changed) by the online split specific example:

When entering the following vendor invoice in the system the user only wants to enter the vendor once.

Later, of course, when segment financial statements are required (for segment A, forexample), the payables (in the general ledger) should report the corresponding shareWhen a vendor line item list is called (in the FI-AP sub-ledger), of course, there

should still only be one open item for the above invoice.Therefore: Document splitting is only relevant for the general ledger; it does not needto be visible from within the sub-ledgers.

Steps Involved in Document SplittingDocument Splitting process can be divided into three steps : Passive Split :During Clearing (during a payment, for example), the account assignments of the items to clear are inherited to the clearing line item(s) (=> such as payables line item{s}). This step cannot be customized.The system creates a reference to the existing account

assignments; these account assignments are used as a basis for the line items to be split For example, during the document splitting for a vendor payment transaction, the system uses rules from the vendor invoice Active (rule-based) split:Also known as rule-based splitting The system splits the documents on the basis of pre-definedsplitting rules As described in the Vendor Invoice transaction, accounting

items are split according to the ratios of purchase accounts The SAP ERP system is delivered with many pre-defined rules If standard splitting rules are not sufficient or you need to enhance the functionality, you can create your own splitting rulesClearing Lines / zero balance formation by balancing char. (and document):

Zero balancing the document ensures the document is balanced and that the document is also balanced for specific characteristics The document is balanced per the Segment characteristic The document is balanced per the Profit Center characteristic You can define the characteristics that are used for zero balancing.

Document Splitting Characteristics (from FI)

Document Splitting CharacteristicsThe system proposes logical document splitting characteristics based on the assigned scenarios. If we elect to use additional document splitting characteristics, we should use them in at least one ledger. To ensure entity balancing select the Zero Balance indicator on if we plan to use the characteristics to create financial statements. The balance of the involved entities is then always zero for every posting. The Mandatory field is an extension of the field status for accounts in which the characteristics cannot be entered during the document entry, and/or for accounts that cannot be controlled using the field status also it is a check whether a business process equivalent business transaction variant was selected. Document splitting is first activated client wide in Customizing further you can activate/deactivate for each Company Code.

Activating Document Splitting and InheritanceDocument splitting is first activated client-wide in customizing.

In a further step (in the dialog structure), you can use this transaction to activate/deactivate document splitting for each company code.

Inheritance means that when you create a customer invoice from a revenue line, for example, the entities (such as business area or segment) are projected (inherited) to the customer and tax lines in the general ledger view.The standard A/C assignment can be used to replace all account assignments that could not be derived from the posting with a constant value.

Activation of Document Split

The activation of the document split is optional is to be performed via activating a splitting method. SAP offers standard splitting methods that can be activated or copied and adopted to companyspecific needs.

Clearing lines are always formed when values have to be reposted between account assignment objects. Ex: Transfer posting from profit center A profit center B.

The clearing lines ensure balancing internally as well as additional dimensions such as BA,SEGMENT or Profit Center.

See the following slides explaining the split logic in detail.

Modeled business transaction:Vendor invoice with multiple expense line items and different account assignments

(with input tax of 10%)Document Splitting Active SplitEntry view:General ledger view / Ledger 0L:

Splitting Method0000000012Document TypeKR+Splitting Rule:=> Item categories to be splitVendor (03000)Value-added tax (05100)=> Base item categoryExpenses (20000)

Splitting logic based on the example of a vendor invoice:=> Basic terms printed in black / bold=> Specific example data printed in blue / italicsDocument Splitting Split Logic, Active SplitEffects in the application (without any reference to an explicit document splitting characteristic):Vendor document (entry view):Vendor document split (general ledger view):Expense 10Expense 90Tax 10to vendor 110Expense 10Tax 1to vendor 11Expense 90Tax 9to vendor 99

Document splitting: Splitting rule detail view

Document Splitting RuleItem categories to be edited.Base item categories

Document splitting: ProcedureSplitting procedure defines how and under which circumstances document splits will be performed. In detail, this means each splitting procedure defines how each item category will be handled in the individual business transaction.

The business transaction is a general breakdown of actual business processes where as business transaction variant is specific version of the predefined business transaction.

The item category is the semantic description for the document split.

An individual splitting rule defines which item categories can/will be split and at the same time defines which foundation can be used.

Document Simulation Expert Mode I

Simulate Document (General Ledger View):

The expert mode provides information on all essential document splitting parameters (such as splitting method or business transaction) and describes how the split amounts are achieved.Example: How does the system calculate the amount of payables (=> AP domestic) for profit center 1000 (=> 9900.00 )?See nextSlide

Document Simulation Expert Mode II

CustomizingParameter ofDocumentSplit:

9.900 = Base Line 0.04 / Expense line (=> 9.000) + Base Line 0. 05 / Tax out of Base Line 0.04 (=> 900)

Document Splitting Follow-up Process I

Modeled business transaction:The vendor invoice (see Example Figures II) is now paidIt is paid with a retention amount of 3% cash discount amount paid: 10.670.00 .

What to watch for:The selected document splitting characteristics now have to be inherited to theposting lines of the payment document as well.

The payment document is split on the basis of document splitting rules of the original expense posting / vendor invoice.Entry view:See overleaf for general ledger view

Document Splitting Follow-up Process IIGeneral ledger view / Ledger 0L:

Document Splitting Inheritance

Modeled business transaction:G/L account postings Expense, taxes to petty cash / document type SA

System configuration:Scenarios Profit Center Update and Segmentation are assignedDocument splitting activated Doc. splitting chars Profit Center and Segment are defined

General ledger view / Ledger 0L:Entry view:General ledger view / Ledger 0L:Inheritance indicator set!Inheritance indicator not set!

Define Zero-Balance Clearing Account

Document Splitting Creation of Zero Balance

Modeled business transaction: G/L account posting Transfer posting within an accountSystem configuration:Scenarios Profit Center Update and Segmentation are assignedDocument splitting activated Doc splitting chars Profit Center and Segment are defined

Entry view:General ledger view / Ledger 0L:Reason for reposting: A vendor invoice was assigned to an incorrect segment and paid with thisincorrect segment.Both the expense and the vendor item obviously need to be corrected.Zero balance creation is only useful and necessary if you want to create a complete balance sheet for a specific characteristic. The above case is an example of clearing line formation.

Modeled business transaction:G/L account postings Multiple expense line items, taxes to petty cash

System configuration:Scenarios Profit Center Update and Segmentation are assigned Document splitting activated Doc. splitting chars Profit Center and Segment are defined

Document Splitting ModelingThe standard splitting rules do not cover this type of business transactionTo post the transaction, you have to enhance the existing splitting rules

What are the reasons for the error message during the error message?No base item category is assigned for item category Cash Account (nor for item category Value-

Added Tax) in the corresponding combination of business transaction and business transactionvariant that is assigned to the respective document type.Moreover, inheritance" of the segment is not possible because it is not unique. If you have to modify a rule, you should create your own splitting method and copy the assigned rules from the standard configuration.

Creating a Customer Specific Splitting Method

Contents

Integration with FI Sub ledgers

Integration with Controlling

Integration with Material Management

Integration with the following components :

Integration with the FI Sub ledgers FI AP (Accounts Payable )FI AR ( Accounts Receivable)FI AA ( Asset Accounting)

Integration with Controlling Real-time Integration CO to FIOnline distribution of follow up costs

Integration with Material Management

New General Ledger Accounting Integration New General Ledger Accounting - Integration

The (real-time) integration from Financial Accounting (FI) to Controlling (CO) has been available in the SAP system for some time now. However, the opposite direction, from CO to FI, was not previously possible in real time. This involves changes to characteristics, for example, in the following processes/transactions:Periodic allocations (assessment, distribution, transfer posting)Manual transfer postings to CO [=> T-Code KB11(N)]Activity allocations [T-Code KB21(N)]Settlement from orders or projects [T-Code KO88 and CJ88]CO reconciliation with Financial Accounting always required the reconciliation ledger, which wasmaintained in Cost Element Accounting.Periodic program runs carried out summary adjustment/reconciliation postings for each costelement/expense account: Transaction code KALC.Transaction KALC is no longer available (by default) after New General Ledger Accounting hasbeen activated an information message points out the new real-time integration between CO and FI.With transaction KALC, it was not possible to reconcile the Segment characteristic.

Before Real-Time Integration CO -> FI

Variants for CO -> FI Real-Time Integration

Variants for CO->FI Real-Time Integration

The Real time integration from FI to CO has been available in the SAP system for some time now However the opposite direction from CO to FI was not possible previously in real time Transaction KALC is no longer available by default after New General Ledger Accounting has been activated

Real-Time Integration CO -> FI Example Figures

Premises for the online distribution of follow-up costs:Document splitting (in New General Ledger Accounting) must be active.The cash discount account must be defined as (primary) cost element.The CO object that you want to credit online must be defined as an optional entry in the additional account assignments of the field status group for the cash discount account. (=> Otherwise you wont see it in the FI document)The document splitting characteristics for controlling, to credit the cash discount account, have to be defined.

Online Distribution of Follow-up Costs Premises

Logistics Process Chain

FI Integration for Goods Movement

FI Integration for Goods MovementThe segments are also derived from the profit center in the material master for logistics process.

The system uses document splitting to create various clearing lines, to achieve a zero balance.

The clearing lines typically include the partner objects of the balancing characteristics.During the split of an FI document that originates from Materials Management, the partner information is also managed in the expense and material stock lines.

AllocationsYou can now use FI (=> no longer only CO) in the mySAP ERP solution to perform allocations (assessment and distribution).Why are allocations needed in FI?Since New General Ledger Accounting now lets you portray profit center accounting, allocations are useful for distributing overhead costs (cafeteria expenses, electricity, water, ), for example, from one profit center (such as the dummy PC) to another profit center at the end of the period.

AllocationsPeriod-end closing for allocation could involve the following steps: Allocation of the Cost Centers in COEnd of period tasks in FI ( Foreign currency valuation etc.,)Allocation of Profit Centers ( or Segments) in FI1.Note: If different segments are assigned to the corresponding profit centers then There will be no longer any Transactions in the cost centers. Actual allocations in CO-OM also updated in New GL when real-time integration CO->FI is active.2.Note: If you want to continue to use classic EC-PCA, you cannot use document splitting (not even for other characteristics) If you want to portray profit center accounting in New GL Accounting, you are more or less obliged to use document splitting. SAP Note.826357

Allocations Cycle Segment Technique

Allocations Cycle Segment TechniqueThis technique is used for defining distribution and assessments.Note: Periodic reposting is not used in New GL Accounting.To represent clearing relationship between the sender and the receiver in the system, you have to make the following entries for each (allocation) segment:From which object's will the costs be allocated sender values?To which objects will the costs be allocated receiver values?Which costs will be allocated?What is the basis for distributing the costs among the receivers- receiving tracing factor?In an (allocation) segment, sender profit centers are combined with receiver profit centers in accordance with the clearing relationships.Several segments are grouped together in a cycle and the cycle must be assigned to a version - Use Version 1 FI

Allocations Sender and Receiver Rules The tracing factor of the variable share identifies a value posted to the profit center as the basis for clearing. SKF cannot be used as the tracing factor for the variable share.

Allocations DistributionDistribution is used to distribute values from one Profit center to other profit centers The charge of cost center does not change the allocation in FI Distribution generates an FI document. Distribution can be reversed and repeated as often as necessary The Sender- receiver relationships are defined using the Cycle-segment technique.

Allocations - AssessmentsWe need to define a separate assessment account (each) for assessment in New GL Accounting. The assessment account must not correspond to a secondary cost element in CO. Assessment is frequently used to render a dummy profit center empty.

Planning (in FI)Since it is possible to portray Profit Center Accounting in New GLAccounting(=> actual data), you may want to enter plan data for

corresponding profit centers as well.

For this certain configurations in IMG needs to be performed once:

Activate totals table FAGLFLEXT (for planning) Import planning Layouts (from Client 000) (=> Planning layouts 0FAGL .. are used in New GL Accounting for Planning. Set Planner Profile (=>SAPFAGL) Create a Planning document type (such as P0) and the corresponding number ranges (per company code) if not delivered by SAP. Define Plan Version: use Version 1 for FI and with the integrated planning with CO and use Version 0 for CO. Assign Plan Version to a fiscal year.

Planning Layouts (for Planning in FI)In the standard delivery, planning in FI uses the following Planning scenarios:Planning on Profit center and accountPlanning on Profit center group and accountPlanning on segment and accountPlanning on Profit center and functional area and accountPlanning on Profit center and partner Profit center and accountPlanning on cost center ( purely in FI) and accountPlanning without characteristics only on accounts

Integrated Planning from CO-OM to FI

So far we have performed planning for your Cost Centers or Orders in CO, we have also used integrated Planning (CO=>ECPCA) to transfer your plan Data to classic profit center accounting (online).

When Profit center Accounting is conducted within New GL Accounting we can also activate the integrated planning indicator in the plan version in FI. In the planning version in CO the Integrated Planning indicator must also be set. The integration of planning from CO-OM to New GL Accounting only works if FI and CO work with the same plan versions.The plan data are transferred online to FI and, provided the correct surroundings are present( for example, a profit center is defined in the master data of the cost center), to (the FI characteristics) profit center ( and Segment).Only Plan data that was entered for primary cost elements are transferred to FI ( to the Profit Centers). It is not possible to plan internal allocations in FI.In New GL Accounting, you can create plan line items. This means that the plan values for an account are not only stored as totals in table FAGLFLEXT, but a plan document (with document number) is also stored for each Planned flow in table FAGLFLEXP.

Contents

Reduction in TCO

Foreign currency valuation (FAGL_FC_VALUATION)

Depreciation posting program (RAPOST2000)

Closing Operations Reduction in TCOAs you saw repeatedly in the Integration unit, using the new general ledger can save you frommany periodic closing and reconciliation operations,because the system has already performed them in real life.This leads to a significant improvement inTotal Cost of Ownership (TCO).Examples of eliminated closing activities:Maintenance and use of the reconciliation ledger Balance sheet adjustment (=>SAPF180)Profit and loss adjustment (=> SAPF181)Maintenance and use of the various FL-SL ledgers, such as transferring values at Profit Center AccountingMany tasks are also eliminated because technical support for segment reporting is available.

Other period-end closing activities are not eliminated and still have to be performed. But there are differences to previous releases due to the logic in New GL Accounting or based on new programs.For example: Foreign currency valuation, the depreciation run in FI-AA, balance carry-forward (in FI), reclassification/sorting of receivables and payables, flat-rate individual value adjustment.

FC Valuation FAGL_FC_VALUATION

To start the correction posting start program FAGL_FC_VALUATION in my SAP ERP. The accounts selected by the correction posting must have been defined as item categories for document splitting. A valuation run requires the entry of a valuation area (from FI).This area must be defined in customizing and be assigned a valuation method.You cant do it during the run itself !The valuation method defines, as before, how / which valuation approach (such as the maximum value principle for payables).Only for balance valuation / not line item valuation: In a further customizing step, you combine the valuation area with an accounting principle (AP).The AP is also required if you want/have to work with multiple valuation approaches (for example, IAS and local) more about that later !The valuation areas to be defined should not be confused with the depreciation areas in Asset Accounting(=>FI-AA). These are original FI valuation areas.

FC Valuation FAGL_FC_VALUATIONIf we assume that the euro/dollar exchange rate falls to parity as of the key date,02/28/CFY, the payables will be 2,000 higher than on the posting date.Therefore: An expense in the amount of 2,000 has to be entered The foreigncurrency valuation run takes care of it!

FC Valuation FAGL_FC_VALUATION

FC Valuation FAGL_FC_VALUATION Although the foreign currency valuation program, FAGL_FC_VALUATION, requires a valuation area, Valuation area is Blank is sufficient in account maintenance that is, you define the accounts without valuation area. The revenue account from currency valuation can also be defined as cost element. In this case, negative costs would be posted to the corresponding CO object after a currency-related reduction of the payable.

Prerequisites:Splitting active [expense, revenue and correction accounts defined as item categories] Splitting characteristic (cost center in our example) defined for CO Revaluation account defined as (primary) cost element.

Result: You can navigate directly to a CO document from the respective foreign currency valuation documents.

Contents

Ledger solution in the new general ledger

Non-leading ledgers

Ledger groups

Ledger solution (in the new general ledger) and entering different valuation approaches, example: foreign currency valuation

Ledger solution (in the new general ledger) and the Asset Accounting component (FI-AA)

Parallel Accounting Parallel accounting means that a companys financial statements need to be created in accordance with different accounting principles like US GAAP, IAS, IFRS etc., . It is required for the various Creditors globally (Banks, Shareholders) and business partners.

Different accounting principles can be modeled using the accounting approach in New GL Accounting.

New GL Accounting also allows you to use different ledgers to save the different valuation approaches This is called Ledger approach (in New GL Accounting).

The Special purpose ledgers can already be used in Release R/3 enterprise, but they are not as functional and uniform as the ledger approach in New General Ledger Accounting.

SAP generally considers the Ledger Approach and the Account Approach as equivalents.

Define Non-Leading LedgersIn the system, each client has exactly one Leading ledger in New General Ledger AccountingMoreover, you can also define additional ledgers (within the general ledger).You can use these different ledgers, for example, to portray different accounting rules.The use of Non-leading ledgers also makes it possible to use different fiscal year variants within one Company Code.

Activating Non-Leading Ledgers

Scenario Assignment

General Ledger Views in FI Document

Scenario Example 1

Topic

Foreign Currency Valuation with Different Accounting Principles

Customizing FC Valuation / New GL Accounting

FC Valuation Customer LI The system derives the accounts to post from the account determination (for valuation area Blank) of transaction Exchange Rate difference OI/GL Account.

The posting document generated by the foreign currency program is reversed automatically with the same , on the first day of the next month. The reversal is independent of the valuation area for which the foreign currency valuation run was started.

An (additional) valuation run for a local valuation area (such as a valuation area for the rules of the German commercial code) does not register a revaluation in the above case.

The original customer document updates the amount 0 for the corresponding valuation area.

Valuation differences can arise due to the application of different accounting principles, such as ones involving foreign currency valuation (of open items).Example: a CUSTOMER line item

Define Ledger Groups

Ledger Groups New TransactionsA posting document is always initially posted to all ledgersThere are now two new transactions for making adjustment and correction postings in only one or several certain ledgers (in the case of parallel accounting, for example):FB01LFB50You can now enter a ledger (e.g. ledger N1 or N2) or the ledger group (such as NG) in the ledger group fieldImportant: If you leave this field empty, postings are made to all ledgers

Reporting: Data Source

Comparing the Different Ledgers

Balance Sheet and Profit & Loss Statement

Financial Statements An Alternative

Financial Statements: Actual/Actual Comparison Classic drilldown report:

Financial Statements: Actual/Actual Comparison IIGraphical Report Output:

Navigation in Drilldown ReportingThe flexibility of drilldown reporting comes from the ability tonavigate through nearly any characteristics.The following characteristics are selected by default in thedrilldown financial statement:Profit centerAccount numberSegmentFunctional area

It is simple to select other and/or additional characteristics, suchas the business area or cost center.

G/L Account Balance Display TCode FAGLB03

G/L Account: Line Item Display TCode FAGLL03Special features for LI display for G/L accounts:The line item display can be started with information from the entry view or general ledger view you decide by choosing the corresponding button general ledger view or entry view in the selection of the program.The two views show different results for accounts that are managed on an open item basis and that are spilt in document splitting (=> additional line items are added during processing) For example: bank accounts.Note: It is now also possible to call line item display (in the general ledger view) for accounts for which the line item display indicator is not set in the master record (=> typically reconciliation accounts (such as asset balance sheet accounts, payables/receivables accounts))!If you opt for line item display with the general ledger view, you can also choose the ledger to be selected (=> choose ledger). Furthermore, you can use the custom selections to include general ledger line items (such as profit center, segment, functional area, cost center).

Payables/Receivables Using General Ledger Account Assignments

Drilldown Examples Payables by GL Account Assignments

Drilldown by Profit Center Drilldown by Customer:

Object List

The object list shows the general ledger account assignments of the payable/receivables accounts for each document.

FI Drilldown Reporting: G/L Account Balances

FI Drilldown Reporting: G/L Account Balances II

Thank you

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