SAP _New GL_Dilip Sadh

7/29/2019 SAP _New GL_Dilip Sadh

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Think Tree Technologies, Inc.

New General Ledger

InmySAP ERP


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Think Tree Technologies,Inc

Segmentreporting

Legalreporting

Management

reporting

Compliance

TransparencyFast close

Extensibility

Parallelaccounting

TCO reduction

GL inmySAPERP

Balanced booksfor any dimension

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The New GL vs. The Classic GL (1)Source: SAP.com

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The New GL vs. The Classic GL (2)Source: SAP.com

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New Functionality in New General Ledger

Accounting (1)

The New General Ledger Accounting can be implemented inplace of the classic General Ledger Accounting

The New General Ledger Accounting holds most functionalitycurrently within the classic General Ledger Accounting alongwith:

Unified Legal and Management ReportingMost functions delivered with PCA are now integrated into theNew GL

Allocations originating in the CO module now update the New

General Ledger in real-time (replaces Reconciliation Ledger)

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New Functionality (2)

Balanced Books by Any Dimension in Real-time

Segment reports can be generated (e.g. for US GAAP reporting) with

the extension of the Profit Center master record to include theSegment

Cost of Sales accounting supported by inclusion of Functional Areadimension

Industry-specific dimensions included (e.g. Fund, Grants for Public

Sector) Industry Templates available in ERP 2005Coding block can be extended to include Customer fields as newdimensions. Eg. Region.

Parallel Accounting

Supports posting to parallel accounts or parallel ledgers to satisfyrequirements of multiple valuation methods e.g. local GAAP, groupGAAP, taxes etc.

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Some Issues in New G/L

When will the GL arrive?

Is it still possible to use the old GL?

Can we use both?

Does everything look different in the new GL?

How can we migrate from the old to the new GL?

??

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Using the New G/L

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For new installations of ECC5, the New G/L is

activated by default

For existing SAP customers, the New G/L isoptional. During an upgrade, the Classic G/L is

activated initially.

Existing customers can migrate to the New G/Lafter the upgrade.


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Activating New G/L

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Impact of Activating the New GL (1)

Activation is done in configuration after which:

In the SAP reference IMG, the Financial Accounting menu isreplaced with the Financial Accounting (New) menu

The tables of the New GL are activated posting data is written to

them

Note that tables of the Classic GL (GLT0) continue to be updated bydefault

Allows for reconciliation of posting results between both sets oftables during implementation to ensure that the New GL isworking properly

Once this has been validated, the Classic GL can be de-activated

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Impact of Activating New G/L (2)

New transactions are inserted into the application menu

Certain Classic GL functions are no longer available for use (e.g.SAPF180, SAPF181)

The ledger group appears in various transactions (e.g. documententry, reporting selection criterion)

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New G/L Menu Paths

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Leading Ledger The Leading Ledger is the principal ledger in New G/L

It used the Fiscal Year Variant and Posting Period Variant that are assigned to the

company code

It manages the local currencies that are assigned to the company code

Only values from the Leading Ledger are posted to CO in standard system

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Scenario Definition

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Entry View & G/L View (1)An Accounting Document has 2 possible views

The Entry View

The General Ledger View

The Entry View will differ from the General Ledger View dependingon the assignment of Scenarios

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Entry View & G/L View (2)

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Entry View & G/L View (3)

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Segments in New G/LThe Segment field is a standard account assignment object available inmySAP ERP

It can be used for reporting analysis below the Company Code level(Segment Reporting)

Segment reporting gives a detailed look at the different activity areas of acompany, such as:

Business divisions

Products

Markets

Previously used account assignment objects for this purpose were:

Business Area

Profit Center

Profitability Segment

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Segment reporting aims:

to give detailed insight into different business activities of a

diversified company

to offer information about the general environment

in order to

better understand the economical performance

better forecast the potential of revenue and financial back-up

better anticipate risks and opportunities

and more...

of the respective company.

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Segmental Reporting Requirements

IASdistinguishes between business and geographic segments.

A business segmentrepresents a partial activity of the company thatdelivers a product or a service with risks and revenues that differs fromthose of other business segments.

A geographic segmentinforms about risks and revenues that differsfromother geographic segments in terms of economic, political ... etcreasons.

According toUS-GAAPa segment is a part of the company whichleads to expenses and revenues and which underlies to its ownprofitability and allocation of resources.

IAS and US-GAAP: A segment has to be reported if external revenuesachieve 10%of the total revenues.

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Segment Reporting/Profit Center

Accounting Integration (1)

Once the New General Ledger is activated, a new field appears in theProfit Center master record: the Segment

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Segment Reporting/Profit Center

Accounting Integration (2)

Segments are defined in the IMG as part of the Enterprise StructureOne possible use: support GAAP business segment reportingAn FI account assignment object that cannot be posted to directly,it can be derived either from its Profit Center association or from aBusiness Add InPossible to configure a default constant value when the profit

center/segment is not known at the time of postingPossible to run FI balance sheets at either the segment or the ProfitCenter level at any point in time (due to Document Splitting and CO-FI Real-time integration functionality described elsewhere in thispresentation)Result: Satisfies requirements for both financial segment reportingand management responsibility accounting

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Segment/Management Reporting GL Account

Balance Display

SAP delivers a new GL account display transaction (FAGLB03) thatincludes these new dimensions as selection criteria:

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Think Tree Technologies,IncPage 25


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Classic GL Balance Sheet in the New GL

The classic GL balance sheet has been modified to accommodatereporting by profit center/segment and functional area (for COS

accounting):

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Think Tree Technologies,IncPage 27


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Drilldown Reporting in the New GL

SAP also delivers a drilldown report that can be used to view theseobjects:

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Segment/Management Reporting

Customer Fields

Within the New GL it is possible to extend the SAP-delivered codingblock to include customer-defined fields (e.g. Region to support

geographic segment reporting)

These fields, once defined in configuration and assigned toledgers, become FI account assignment objects

However, they cannot be posted to directly in other applicationcomponents (Logistics, Controlling) need to define automaticderivation rules

Similar to Segments, Profit Centers and Functional Areas, it ispossible to run FI financial statements against values within thisdimension

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Chapter Summary

Activating new G/L

Leading Ledger

Scenario

Entry View

General Ledger View

Segments

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Documents

SAP _New GL_Dilip Sadh