NEW GL

1

SAP GL Document Splitting, Migration Aspects, Tips and Tricks

Agenda

• GyanSys Brief Overview

• Presentation Abstract

• New GL Unified Approach Overview

• New GL Benefits

• Best Practices to implement New GL

• Document Splitting

• Zero Balance Account and automation to balance at

Profit Center level

• Migration aspects of New GL

• New GL and Enhancement Pack 5

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Offices

Partnership – SAP & Microsoft

Our Services

Engagement Model

• Global headquarters –Indianapolis, IN • US Offices - NJ and TX. • International - Netherlands, Philippines and India • WBE Certified

• SAP’s National Services Partner • SAP Ramp-Up PPM 5.0 , PLM 7.01, SRM 7.01 • SAP Co-Innovation Lab Partner • In-House System for POC/Conference Room Pilot

• Assessment and Evaluation, • Implementation and Development • Testing , Training, and Support • System Optimization

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GyanSys Brief Overview

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engagement

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Presentation Abstract

• Best business practices and Tips and Tricks during implementation of NEW GL.

• This session includes SAP standard document splitting concepts, methods and rules then delves into specific examples that illustrate how the document splitter influences the posting of different transactions, accounts and impact on subsequent processes including financial reporting. It includes the automated clearing process for Zero balance Account at Profit center Level and scenarios for enhancements to reflect correct profit centers during document splitting. It covers newer functionalities that are being available up until Enhancement Pack 5 and some of the complexities scenarios surrounding data migration to NEW GL.

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New GL – The Unified Approach

Cons.

Preparation

EC-PCA

FI-SL CO-OM

CO-PA

Profit Center

Determination

CoGS Ledger

Currency

Translation Derivation

Accounting Interface

Persistency layer

Reconc. Ledger

GL in mySAP

ERP

Online Split:

Balanced Book

for any dimension

Profit Center

Determination

Currency

Translation Zero balance Derivation

Accounting Interface

Persistency layer

Classical GL Approach New GL Approach

The New GL Approach has the unique document splitting feature that enables the preparation

of financial statements by the chosen characteristics (ex. Profit centre/ segment).

In the classical approach, users would have to retrieve information through various areas

outside of the GL, such as the special purpose ledger.

Recincilliation between finance controlling modules of SAP happens in real time within the new

GL, whereas in the classical approach a reconcilliation program KALC(N) needs to be run.

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New General Ledger – Benefits

– Segment Reporting**

– Single Source of the Actual Recording

– Eliminate Multiple Tables

– Parallel Accounting

– Full Balance Sheet by Mulitple Dimensions

– Faster Close

**Segment is part of Profit Center in New GL

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Best Practices for New GL Implementation

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• Streamline Segment reporting ( refer to OSS note 321190 – reporting by

Business Area, Profit center, OSS note 862357 detailing SAP GL and Profit

Center)

• Segment Definition and Derivation (Using BADI – FAGL_DERIVE_SEGMENT,

or through definition in Profit center master data)

• Set up of Document Splitting

• Reporting Functionality (Report Painter report using table FAGLFLEXT, and

using data structure 0FI_GL_10 for BI/BW reporting)

• Parallel Accounting – Ledger Set up (refer to OSS note 820495 regarding

details on ledger/s to activate)

• Activation of Real-Time Integration

• Scenarios Set up

• Leading valuation for Asset Accounting

• Foreign Currency Valuation for accounts using different accounting principles

(IFRS or GAAP) via Parallel Ledgers.

New GL Supports Segment Reporting

• The New GL supports regulatory and compliance

requirements as IAS / US GAAP requires all segments to

be reported if external revenues constitute 10% (or

more) of the total revenues

• The New GL functionality allows users to choose

Segments as one of the characteristics for Business

Activity reporting

– Profit and Loss accounts and Balance Sheets can be

drawn for each of the reporting segments

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Scenarios

• Scenarios identify the fields that are updated in Ledgers during posting

• Scenarios available in SAP are: – Segmentation (FIN_SEGM). Activation of this scenarios is a pre-requisite to

preparing Financial Statements for Segments.

– Cost Center Update (FIN_CCA)

– Preparation for Consolidation (FIN_CONS). Activation of this scenarios is

required if you use SAP – BCS or EC-CS (Enterprise Controlling –

Consolidations)

– Business Area (FIN_GSBER)

– Profit Center Update (FIN_PCA). Activation of this is required to prepare

Financial Statements at Profit Center level.

– Cost of Sales Accounting (FIN_UK)

• Need to activate only the scenarios that you need**.

• Assign Scenarios to the relevant Ledger only

• Industry- specific scenarios are available for industry solutions **Note: If a scenario is not activated, then it is hard to activate a scenario after GO LIVE.

You need to take SAP‟s help to implement it. It is suggested to activate all the

scenarios upfront to avoid such hassles.

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Key features of the New GL

Parallel Valuation • Ledger Approach

• Transactions can be posted to Specific Ledger/s

• New Financial Statements

• FC Valuation

• Depreciation Areas for parallel valuation

Improved Integration • Real-time CO/FI Interface (Scenarios)

• Asset Accounting (incl. AUC)

• Inventory Management

• Consolidation

Document Splitting • Set of splitting methods and rules

• Online split

• Zero-Balancing functionality

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New GL features drawn from Single Source of Information

Business Requirement

Parallel Accounting

Cost of Sales Accounting

Full Financial Statements

Consolidation

FAGLFLEXT

Ledger Group

Functional Areas

Business Area, Segment, Profit Centre

Trading Partner

4/3/2012 12

Document Splitting Concept

• Document Splitting is one of the key ways to streamline financial reporting

• Reporting can be by way of one of the chosen characteristics – Segment,

Profit Center, Business Area etc.

• Document splitting functionality in new GL performs automatic split in real-

time

• Zero/ self-balancing functionality in Document Splitting enables to produce a

balance sheet and Profit & Loss by Profit Centre

• Passive split -when the amounts on the line items that do not have Profit

Centre are split by the system based on preceding processes

• Active split - when the amounts on the line items that do not have Profit

Centre are split by the system based on preconfigured splitting rules

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Document Splitter influences

• The document splitting with its essential configuration pieces like classification of GL accounts

with proper item categories and transactional variants, classification of document types etc., have

a bearing on the business process and transactions that we run in SAP.

• For example, you will run a customer cash application process through SAP transaction code F-

28. The business process here is customer cash application in which a customer open item/s and

bank accounts are involved. However, if you were to use the same processing with a transfer

posting with clearing transaction code, say, F-30, you will be ending up with the document

splitting error.

• Cash Application transaction and Transfer with clearing deal with two different business

processes, and the Document splitter is very sensitive to the use of the correct business process.

Item category 04000 in the above example is related to Cash, and this is to be used with the

correct business process in SAP, namely cash application. The business process Transfer

posting accesses document type DA, which has business transaction 0200 – Customer Invoice

assigned to it, where as the document type DZ (cash application) has the business transaction –

customer payment 1000 assigned to it. So the system issues a document splitting error.

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Zero Balancing – Document Splitting

• A zero balance Account needs to be set up in SAP to achieve split by a chosen characteristic, say Profit Center

• The concept of Zero Balancing can be explained with the use of the Entry view and GL view of the posted document

• Entry view of Posted document

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Zero Balancing – Document Splitting (Contd.)

GL View of posted document

• Note that each of the Profit Centers is balanced by the introduction of the Zero balance GL account, which itself nets to zero

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• Although the Zero balance account is introduced to

balance the profit centers in the document splitting

process, the account itself may have positive and

negative balances by individual profit centers.

• In order to make the Zero balance account to balance at

individual Profit center basis, an automated process can

be introduced (Custom Z Program)

• To achieve this, in a situation where there are multiple

Profit Centers in a company code, one of the Profit

Centers should be nominated as a Leading Profit center.

• Several offset accounts need to be created for these

profit centers and posting logic should be contained in

the automation program.

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• The general offset account for zero balance “automatic”

account say, 4160500 is to be created as say, 4160519 “ Zero Balance Offset Account”.

• For each profit center following offset accounts are defined:

Company Code

Profit Center

Lead PC Offset Account

IN10 * 4160519

IN10 2840 4281284

IN10 3600 X 4281360

IN10 3610 4281361

IN10 3640 4281364

IN10 3660 4281366

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• To achieve the automatic balancing of the Zero

Balance account, the new offset accounts must be configured in the document splitting GL account classification table.

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Posting Logic: • Postings must be created for all Profit Centers with the exception of the lead profit

centers.

• For each Profit Center balance (except lead Profit center) 2 documents must be created.

• This Process needs to continue for all the Profit Centers (with exception of the lead profit center balances).

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• The sets of documents created by the automatic

program are shown in the below example

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• Other features of the automatic program to balance the zero balance accounts by profit center – Validations before program creates any adjustment documents

– Checks if there is a debit or credit balance of Zero Balance Account 4160500 on Dummy profit center of a company code

– Checks if the balance of Zero Balance Account 4160500 of a company code is not equal to Zero

– The program for the automated process will call Program FAGL_ACCOUNT_BALANCE for the determination of profit center balances

– In order to allow the business a better control of the posted documents and balances the program will post always the actual current balances and will at the same time reverse the previous adjustment documents automatically. Reversal shall not be done if the new adjustment posting stuck in an error.

– The document numbers of the previous runs must be stored in a table and marked if they have been already reversed.

– These documents must be blocked for manual cancellations.

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New GL Migration Aspects

1. Project is an upgrade of the system from SAP R/3 to

ECC 6.0

2. Business requirements and Milestone scheduling need

to be drawn

3. Necessary customizing, including data mapping must be

carried out

4. Custom Programs may need to be updated. Thorough

testing needed

5. Testing, certification of results, and final sign off on the

project

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Migration Cockpit

The Migration Service contains the following functions: • New GL Migration cockpit for executing the migration

• Process Tree for Scenarios-based management by the individual activities of the migration

• Monitor of the Migration steps with Status Management

• Remote Service Session to validate the scenarios and analyze the system Possible consistency check against target customizing of the New GL accounting

• Remote Service Session to Validate Tests

• Technical validation check in a test system after a data migration

• Development support by the New GL migration back office

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Special points on Migration to New GL

1. It should be noted that Migration will not change existing

classic GL line item table BSEG, the secondary indexes,

or the Classic Totals table GLT0.

2. Migration will not change data in classic PCA Ledgers,

Cost of Sales Ledger, Reconciliation Ledger or Special

Purpose Ledger.

3. Should Migration fail for one reason or the other,

transaction codes FAGL_MIG_RESTORE_ALL

(complete reset), FAGL_MIG_RESTORE_OP (reset

open items)FAGL_MIG_RESTORE_RP (reset document

transfer – current year) can be used to nullify the effects

of Migration.

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Tips and Tricks

• Scenario: New Ledger implemented without choosing scenarios Cost

Center Update (FIN_CCA) and Profit Center Update (FIN_PCA):

• Solution: 1. Do necessary configuration to activate the scenarios as above.

2. Delete the line items in the above table

3. Run transaction GLGCU1to retrieve data from BSEG table and to post to FAGLFLEXA and

FAGLFLEXT tables.

4. To delete data in FAGLFLEXA and FAGLFLEXT tables: a) Access SE16N

b) Enter table name, e.g., FAGLFLEXA, press ENTER

c) Type the string “&sap_edit” in the command line, and press ENTER

d) You can now delete the line items that you want to delete and save.

5. In a situation like this, prior to doing configuration for the change and deleting the items,

please be in touch with the SAP Data Migration Team and bring them up to speed as to what

you want to do

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Tips and Tricks (Contd.)

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• Scenario: You need to know how the system applied the document splitting

rule on an already posted document

• Solution: 1. Access transaction code SE38

2. Run program FAGL_SHOW_SPLIT

3. In place of steps 1 and 2 above, you can also run the transaction code:

FAGL_MIG_SIM_SPL

4. Enter Company code, Fiscal Year, and the document number in which you want to see how

the splitting rule was applied

5. Execute

6. The resultant screen shows splitting rules for the posted document.

Tips and Tricks (Contd.)

• Scenario: This was the actual case of a Leading Utility company. Only

Leading Ledger was configured in Phase 1 of implementation. Phase 2

(after 1 year) discovered 2 non-leading ledgers needed to be configured,

and history loaded to these ledgers.

• Solution: 1. After creation of the two non- leading ledgers (N1 – for local GAAP and N2 for Regulatory

Reporting) Execute the program „RGURECGLFLEX‟ (Transaction code: GLGCU1) to copy

the postings from ledger „0L‟ to „N1‟.for all company codes for fiscal years . • Some times all posted entries did not copy well. SAP concluded this as Consulting issue. Customer message was raised.

2. An alternative approach was to extract balances by period by company code, by GL

account, by profit center and segment, using S_PL0_86000028 or download from

FAGLFLEXT table into Excel and use the same data to upload both N1, and N2. • An Custom Excel upload template was filled with the downloaded excel information, and upload to each of the Ledgers

• In respect of Open Item Managed Accounts, Auto post flagged accounts, and Reconciliation Accounts, postings would be

made to their respective conversion accounts.

3. A comparison of non – leading ledger posted data with the Leading Ledger was made using

the transaction code GCAC.

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SAP Financials and Enhancement Pack 5

• Following topics are covered: – Profit Center Reorganization:

• Reorganization of profit centers enables companies to change the organization of profit centers

(merge, slit) within a defined procedure

• Reporting on segments and profit centers via an aggregated report on changes in tangible Fixed

assets created according to the balance sheet and P& L account

– SAP Master Data Governance application for Financials

• Managing and distributing organizational units (profit center, cost center)

• A solution to centrally maintain financial organizational units and cost elements in a corporate group

with features such as versioning of the master data and approval workflow. The master data can be

distributed by services or downloaded to operational systems or a consolidated system.

• Services to import Chart of Accounts and Financial statement from SAP Master Data Governance

which helps you to manage data to SAP SEM: BCS

– Enhancement in SAP Financial Supply Chain Management set of applications (FSCM)

– Improved formats in financial reports

• Formatted reporting with Crystal Reports software and dashboard with Xcelsius for key application s of

financial and managerial accounting within the SAP ERP Financials solution.

– SAP Treasury and Risk Management application

• Streamlined hedge management process

• Enhancements in in-house cash

– Localizations for India, Japan, Chile, and Russia

– Enhancement in SAP Strategic Enterprise Management (SEM) business consolidation functionality for legal

compliance

4/3/2012 29

GyanSys Inc

8440 Woodfield Crossing Blvd., Suite #290

Indianapolis, IN 46240, USA

O: (+1) 317 580 4200

Email: [email protected]

www.GyanSys.com

GyanSys – Contact Information

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detailed discussion with our

Solution Architect

Documents

NEW GL