1.

The New General Ledger has the following advantages over the classic General Ledger in R/3 Enterprise: a) In the new General Ledger, you can display the parallel accounting using parallel accounts (as in R/3) or using parallel ledgers. The FI standard functions and reports are available for all parallel ledgers. b) The Segment entity and the relevant reporting that are required for segment reporting according to IAS and U.S. GAAP are available in the new General Ledger. c) In addition, you can enhance the new General Ledger flexibly, that is, you can enter user-defined fields and update the relevant totals. Many standard reports can evaluate the information from the user-defined fields. d) When you use the new Document Splitting function (online split), you can create financial statements at company code level and, if required, for entities, such as the segment. For each document, the system then creates a zero balance for the relevant entity, for example, for the segment. e) As a result, you no longer have to carry out time-consuming reconciliation tasks between FI and CO for the end of period since cross-entity processes are transferred in real-time to the new General Ledger in Controlling. Furthermore, you can, for example, navigate from the financial statements report results or the profit and loss statement report results to the relevant CO report. f) The new General Ledger uses the same interfaces as the General Ledger in R/3. As a result, users do not require any additional training. g) Due to the new multi-dimensional aspect in the General Ledger, all data that is relevant for the General Ledger is stored in one environment. As a result, reconciliation tasks, for example, between the general ledger and Profit Center Accounting or the consolidation staging ledger, and processing steps that have to be carried out repeatedly in the individual applications (for example, balance carryforward) are no longer required. When you use the new General Ledger, you may not have to use the special ledger anymore.

2.

Default delivery

In new installations, the new General Ledger Accounting is activated by default in mySAP ERP. We do not recommend that new customers use the classic general ledger accounting since using the classic general ledger accounting requires additional migrations at a later stage. As a result, new customers require explicit authorization from SAP to use the classic general ledger accounting. If you want to use the classic general ledger accounting. create and send a CSS message to SAP before you start using the system.

When you upgrade an R/3 system to mySAP ERP, the classic General Ledger remains active at first. If you want to convert your system to the new General Ledger, you can do so within a project after you have completed the upgrade. For more information about this topic, see point 3.

3.

Migration support

To ensure maximum security, SAP supports each migration project with a migration service. This basic technical service is based on standard migration scenarios and is provided in the form of migration packages for a fixed price. This service is provided by a NewGL migration back office, which was set up for this purpose. After you commission the service, you are provided with a license key. This releases the migration functions.

4.

Benefits of New General Ledger

New General Ledger Accounting in mySAP ERP has the following advantages compared to classic General Ledger Accounting: 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 timeconsuming 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.

Hi,

Pls find herwith the brief note on Lockbox processing which would help you to understand the basic function of lockbox in SAP.

Payment transactions in the USA and Canada are made almost exclusively in the form of checks. In order to process these payments quickly, banks offer lockbox services where customers can send their payments directly to the bank (lockbox). The bank deposits the checks and sends the check deposit information to the payee via electronic file transfer.

Lockbox utilization results in two primary business benefits: funds collection and remittance information delivery. The major benefits are that the company is able to recognize the funds more quickly, and the customers check is cashed in a more timely manner. The bank collects the payments along with the customers remittance information which indicates the open items the customer is paying. Data entry clerks at the bank manually enter the information

into an electronic file for transmission to the company in groups of checks called batches. This electronic file is used to; 1. Update the companys general ledger cash accounts, 2. Clear customer accounts.

The Bank Administration Institute (BAI) defines lockbox formats. In practice, the standards published by this organization are not followed strictly. Banks usually offer several variations of each format, including the BAI and BAI2 formats that SAP reads.The BAI2 format is newer and contains more information than the BAI format.

BAI and BAI2 formats differ primarily in their level of information detail. BAI does not subtotal the incoming check line items by invoice reference. One check total amount contains all invoices listed underneath it. Consequently, in BAI format files, the entire check must match the total amount for all invoices listed or be within configured payment difference tolerances.

BAI2 splits the check total into separate invoice references and corresponding payment amounts per invoice. It can also contain deduction amounts as well as the external reason code for the deduction. Within a payment targeted for multiple invoices, BAI2 format files can achieve a processing status of Partially Applied which means that some of the items within a check have been matched and cleared, and other invoices were not identified so their payment portion will be placed On Account. As a result, the hit rate or application rate percentage is higher when using BAI2 format than when using BAI format. ===========================================

Lockbox is a function, performed by a bank, which allows the Customers of the Company to send payments directly to a bank via lockbox (a specific mail address set -up for the company at the bank). These payments are collected by the bank and applied to the companys bank account, with data from the payments (like check routing number, Customer bank account number, check number, payment amount and invoices being paid) being made available to the company in a file format to allow for collective processing.

The lockbox data is either sent daily to the company, or located at the bank, and retrieved by the company daily.

SAP Lockbox processing is a two step process: step 1 has User using one transaction to post multiple payments based on data file from the bank, and step 2 is a transaction to correct any un-applied payment data from step 1.

Lock Box , as expained by other friends, it is kind of a post box in general terms,which will receive all the incoming payments from the customers and the functionality mainly depends on 3 matching charactaristics,

1 invoice number

2 customer account number maintain customer MICR numbers in customer master Lockbox works by identifying customer based on the customer MICR number in master data. If input file cannot find customer through MICR then it looks for document numbers which are supplied in the file from bank. The MICR number is also in file from bank because customer paid by check so ABA and customer bank account are on there.

3 total amount in that invoice

when the fles gets uploaded by the end use in OBAX the system will do the above 3 way match to recongnize the customer payments.

Config Steps,

1) Define Lock Box - Financial Accounting (New) --> Bank Accounting --> Bank Accounts --> Define Lockboxes for House Banks - OB10

2) Define Control Parameters - Financial Accounting (New) --> Bank Accounting -> Business Transactions --> Payment Transactions --> Lockbox --> Define Control Parameters - OBAY 3) Define Posting Data - Financial Accounting (New) --> Bank Accounting -> Business Transactions --> Payment Transactions --> Lockbox --> Define Posting Data - OBAX