I Logic SAP FI/CO

Faculty: Mr. N. Vijaya Bhaskar

New General Ledger

New GL Accounting is introduced from version ECC 5.0. The intention behind
SAP New GL Configuration is to combine the features of

GL,

Profit Center Accounting,

Reconciliation Ledger,

Special Purpose Ledger (SPL),

Business Area and

Cost of Sale Accounting.

Benefits like

Segment Reporting,

Cost of Sale Accounting,

Management Reporting,

Parallel Accounting,

Balanced Books

are possible with New GL.

Important Advantages

Unites all general-ledger accounting software to support all our internal and
external accounting requirements.
Streamlined functionality makes it significantly easier to comply with the
latest standards for corporate governance and international financial
reporting
Offers much more flexibility and supports a fast close.

Functionality of New GL Accounting

We can use several ledgers in parallel

This allows us to produce financial statements according to different

accounting principles.

Theory Material
vijay@kautilyaconsulting.com

Contact:

I Logic SAP FI/CO

Faculty: Mr. N. Vijaya Bhaskar

We must designate one ledger as the leading ledger.

Leading Ledger: The leading ledger is based on the same accounting principle
as that of the consolidated financial statements. If we use the account
approach for parallel accounting, we post all data to the leading ledger.

This leading ledger is integrated with all subsidiary ledgers and is updated in
all company codes. This means that it is automatically assigned to all
company codes.

In each company code, the leading ledger receives exactly the same settings
that apply to that company code: the currencies, the fiscal year variant, and
the variant of the posting periods.

We can define a second and third parallel currency for the leading ledger for
each company code.

Summary of benefits of New GL component

Segmental reporting is possible because of the real time document split.

Reconciliation between FI and CO can occur in real time and eliminates using
FI/CO Reconciliation ledger.

It facilitates maintenance of Multiple Ledgers within the new GL component. It

integrates conventional GL with Special GL component.

The new GL component has an extended data structure which facilitates

storing additional fields for Reporting and analysis.

Segment

Segment is a standard account assignment object which helps in analysis

based on objects below company code level

Segmental reporting facilitates detailed analysis at various levels of business

activities like Brand, Product, Market etc.

Segmental reporting can meet the requirements of International Accounting

Standards like US GAAP, IFRS (International Financial Reporting Standards)
etc.

Segmental reporting complements Profit Center Accounting and Business

Area Financial statements.

By assigning a segment in Profit Center Master, it can be derived from a Profit

center.

Theory Material
vijay@kautilyaconsulting.com

Contact:

I Logic SAP FI/CO

Faculty: Mr. N. Vijaya Bhaskar

Segment field is a standard field in the totals table with technical name
FAGLFLEXT. (Table name important for interview)

Segment-wise reports can be generated from new FI drilldown reporting.

Document Splitting

Document splitting enables us to create supplementary internal balance

sheets based on Profit Centers or Segments.

Adjustments are not required at Profit and Loss Statement / Balance sheet
level as all information is available at document level itself.

It facilitates us in generating industry specific / enterprise specific reports

(segment-wise reports).

Period closing becomes easy as splitting happens in real time and need not
be handled as part of closing.

Item Category in New GL component

In Controlling Module, we use Cost Element Category value to help the system in
understanding whether a particular Account is an Income Account or Expenditure
Account.
Similarly, now as part of FI, we need to assign a corresponding item category value
for every GL Account to tell the system whether a particular Account is Income
Account, Expenditure Account, Asset Account etc.
Transaction in New GL Account Component
Transaction (Business Transaction) helps the system in understanding the exact
nature of the entry being posted in terms of whether it is a vendor invoice,
customer invoice etc. As per its understanding it facilitates document splitting and
updating Ledgers etc.
Transaction complements existing Document types in SAP. That means, Transaction
provides additional information about the entry being posted.

Theory Material
vijay@kautilyaconsulting.com

Contact: