SAP NewGL Closing Programs

Closing Programs

mySAP ERP – The New GL

SAP AG 2003, Title of Presentation, Speaker Name / 2

New Programs in the Closing Operations

The closing operations in FI affect The foreign currency valuation of open items and monthly

balances (SAPF100> FAGL_FC_VALUATION),

Translation (FAGL_FC_TRANSLATION)

Grouping (SAPF101 > FAGL_CL_REGROUP),

Other valuations (old: SAPF107V, SAPF103 and SAPF104)

WE/RE accounts clearing (old: RFWERE00).

Balance carry-over (old: SAPFVGTR)

Balance sheet and P&L adjustment (SAPF180 and SAPF181) are removed.

The valuations are generally made via a valuation area.


The Valuation Area

Assignment in Customizing:

Valuation Area > Accounting Principle > Ledger Group

1 : 1 : 1

The valuations are performed per valuation area.

The valuation area controls the account determination and the valuation method (only FAGL_FC_VALUATION)and thus the determination of the exchange rate type.

The Accounting Principle determines the Ledger Group. This concerns FAGL_FC_VALUATION, FAGL_FC_TRANSLATION, FAGL_CL_REGROUP and SAPF107V.


Open Items Valuations

The most important changes are: The history is recorded in table FAGL_BSBW_HISTRY

No more “updates” to valuated items (BDIFF)Always: Adjustment posting and reversal posting

No consideration of RDIFF at the time of the valuation

Default: Remeasurement procedure according to FASB52 / IAS21.(refer to the example on the next slide)

Transfer of the valuation differences to CO (always when valuation accounts are created as a cost element)


Example: LC1 = EUR LC2 = USD

Posting to be evaluated:

Amount TC Amount LC1 Amount LC2

100 CAD 160 EUR 120 USD (Posting exchange rate: 1 EUR = 0.75 USD)

Valuation for the exchange rate 1 CAD -> 1.50 EUR TYPE M1 EUR -> 1.20 USD TYPE B

ERD amount TC ERD amount LC1 ERD amount LC2 0 -10 -12

Comment:The calculation (TYPE B) of the valuation amount LC2 (-12) is not carried out from the conversion of the posting amount LC1 (160 EUR),

That would be: 160 x 1.20 = 192192 – 120 = + 72 (calculated exchange rate difference)

but from the direct conversion of the valuation amount LC1 (-10 x 1.20) to the valuation amount LC2 (-12). Also TYPE B.

Remeasurement

Direct c

onversion

(remeasurement)


Is Remeasurement Always Used?

Example: Countries with high inflation During posting, LC2 and LC3 are usually both determined by

conversion from LC1.

No remeasurement, if it is specified in Customizing (OB22) that LC2 or LC3 is to be converted from the transaction currency during the posting ( TC: 100 CAD) (switch value 1, relevant for countries with high inflation because TC1 is subject to a strong influence from inflation).

Time of the valuation:If switch value 1 is set, then no update to ERD-LC2 or ERD-LC3, because the conversion from the ERD-LC1 posting amount would not be meaningful.(Refer to the example on the next slide).


Example: LC1 = EUR LC2 = USD

Posting to be evaluated:

Amount TC Amount LC1 Amount LC2

100 CAD 160 EUR 120 USD (Exchange rate: 1 EUR = 0.75 USD)

Valuation for the exchange rate 1 CAD -> 1.50 EUR TYPE M1 EUR -> 1.20 USD TYPE B

ERD amount TC ERD amount LC1 ERD amount LC2 0 -10 no entry

Comment: ERD-LC1 (-10) is determined “normally”, ERD-LC2 is not determined, because LC1 for example, represents a high inflation currency, which would not be very meaningful for the determination of ERD-LC2.In this case an extra run is conceivable, which specifically determines ERD- LC2 from the comparison of posting–TC und - LC2 and the valuation exchange rate CAD – USD.

No Remeasurement, if...

No remeasurement


Initial situation: 2 documents posted in foreign currency USD: FC= Foreign currency, TC = Transaction currency

Document 1: Post.date 01/01/2005 , Posting exchange rate: 0.8

Account TC :USD LC: EUR Segment

Bank clearing 400 - 320 - S1

Bank 400 320 S1

Document 2: Post.date 02/01/2003, posting exchange rate: 1.1

Bank clearing 600 - 660 - S2

Bank 600 660 S2

Balance Valuation

Bank Bank clearing

400 / 320 S1600 / 660 S2

400- / 320- S1600- / 660- S2

Balance valuation account bank for 03/31/2005, valuation rate 0.9

Valuation per account: TC 1000 LC 980Valuation amount: 900Valuation difference: - 80

>Segment distribution at the ratio 400 : 600 >Valuation difference S1: - 32Valuation difference S2: - 48

Valuation per segment Segment 1 TC 400 LC 320Valuation amount: 360Valuation difference S1: + 40

Segment 2 TC 600 LC 660Valuation amount: 540Valuation difference S2: - 120

- 80

Different segment values (company code oriented or segment oriented value determination):

Account balance after posting

Preferred not supporte

d


FAGL_FC_TRANSLATION

Evaluation of balance sheet/P&L areas (example: reporting currency TC2 USD)1. Translation happens at totals level (possible for all types of G/L accounts)2. Account determination happens via valuation area and financial statement version

Example: TC1 EUR TC2 USD

Orig. document 160 120 Remeasurement -10 -12

________ ________Account balances 150 108

Translation: What is the value of LC1 (EUR) in reporting currency (USD) per key date?(LC1 evaluated with key data exchange rate 1 EUR = 1.20 USD)

(150 X 1.20 = 180) value to be achievedRequired adjustment posting + 72 to get key date value

Asset accounts are evaluated with the historical exchange rate, P&L accounts are evaluated with the weighted exchange rate (corresponding exchange rate type in table TCURR must be maintained).

Translation (FASB52/IAS21)


Regroup Customers with Credit Balances etc...

Receivables Correction Payables

100 100-

Transfer posting customer with credit balance

a) Company code view/without segment examination

Initial situation:

Receivables_______________________

50 – S1

50 S2

100 - S3


50 S1 50- S1

b) Company code view / with segment examination

50- S2 50 S2

100 S3 100- S3


50 S1 50- S1

c) Without company code view/segment examination only

100 S3 100- S3

Preferred solution!Company code determines the depiction of accounts.Positive payables (50,– S2)are accepted

Segment reports not possible

Total payables (150-)do not correspond to thecompany code view (100-)

Technology

SAP NewGL Closing Programs