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New Gl Functionality
By Guntupalli Hari Krishna
SAP ERP
T.CODE: FAGL_FLEXGL_IMG
SAP FI/CO New General Ledger accounting
my SAP ERP
ERP Central Component (ECC) 6.0 Version
SAP set out to meet these requirements, and New General Ledger Accounting in
mySAP ERP is the result incorporating all of the above points.
mySAP ERP Evolution history
Evolution History of SAP R/3 to mySAP ERP:
A complete architecture change took place with the introduction of my SAP ERP edition
in 2004. R/3 Enterprise was replaced with the introduction of ERP Central Component
(SAP ECC). The SAP Business Warehouse, SAP Strategic Enterprise Management and
Internet Transaction Server were also merged into SAP ECC, allowing users to run them
under one instance. Architectural changes were also made to support an enterprise
services architecture to transition customers to a services-oriented architecture.
mySAP ERP ECC 6.0 Technical Overview Fast
Facts
SAP R/3 Enterprise 4.7:
151,600 Tables & 75,000 Transaction codes (approx)
FAGLFLEXA & FAGLFLEXP: General ledger oriented or ledger specific line items
for both actual and plan items. It contains additional information used in the entry
view in BSEG table.
b) If existing customers want to use the new general ledger, they have to
activate it using a Customizing transaction or through FAGL_ACTIVATION.
Overview:
This section is applicable for clients who migrate from classic GL to New GL. By
Default, after activation of the new General ledger, the reports only read the
tables for the new general ledger accounting the Read from Classic general
ledger flag is not set.
In order to read the tables for classic general ledger accounting also (=> table
GLT0), select the checkbox Read Classic General ledger (GLT0). Path and
screenshot mentioned in the coming slides.
SAP Recommendation:
Any update of the Classic General Ledger tables should be deactivated after
running and verifying the first end-of-period closing, at the latest. If we update
the tables of both the conventional and the new general ledger, then too many
unneeded data records will be generated.
New GL Activation Update / Read from Classic General ledger
Path: Customization -> Financial accounting (New) -> Financial accounting
global settings (New) -> Tools -> Deactivate update of classic general ledger
(GLT0).
New GL Activation Update / Read from Classic General ledger
New General Ledger Classic with New General Ledger
Balance Comparison
Overview:
This step is required where update of both classic and new General ledger
is activated. This is mainly to compare the balances so as to check any data
inconsistency in classic and new General ledger.
Path:
Customization -> Financial accounting (New) -> Financial accounting
Global settings (New) -> Tools -> Compare ledgers
Classic with New General Ledger Balance Comparison as
an Example
New General Ledger Accounting
With New General Ledger in place, Ledger solution can be the most
effective solution approach to address parallel accounting
requirements.
IFRS in Telecom Industry - Overview
Following IFRS standards are applicable to Telecom industry:
Inventory
Long-lived assets
Mass asset accounting
Decommissioning liabilities
Intangible assets
Leases
Revenue Recognition
Segment Reporting
With New GL functionality, Segmental Reporting can be easy out which is very
crucial for telecom industry, having diversified nature of services/segments.
Leading Ledger:
For each client, there is a leading ledger to which all company codes are assigned. This ledger should
contain the group valuation view. Leading ledger is based on the same accounting principle as that of the
consolidated financial statement. It is integrated with all subsidiary ledgers and is updated in all company
codes. It automatically receives the settings that apply to the company code like the local
currency (and also additional currencies) that are assigned to the company code, uses the same
fiscal year variant and posting period variant that are assigned to the company code.
In short, non leading ledgers are parallel ledgers to the leading ledger. We can use these
different ledgers, for example, to model different accounting rules for parallel valuation
Example: Leading Ledger Local GAAP requirement and Non leading ledger US GAAP or IAS
or UK GAAP.
Parallel valuation Ledger concept
Customization steps
Path: Customization -> Financial accounting (new) -> Financial accounting basic settings
(new) -> Ledgers -> Define Leading ledger.
2) Define currencies of Leading ledger
Overview: It takes the first currency as the company code currency by default. If there is
any requirement for additional currencies for leading ledgers, it can be created in this
path.
Path: Customization -> Financial accounting (new) -> Financial accounting basic settings
(new) -> Ledgers -> Define currencies of leading ledger
3) Define and activate Non leading ledgers
Overview: In this step, similar to leading ledger, company code currency is assigned by
default to non leading ledger. Additional currencies can be created; different fiscal year
variant and posting period variant can also be assigned in this step
Path: Customization -> Financial accounting (new) -> Financial accounting basic settings
(new) -> Ledgers -> Define and activate non-leading ledgers
4) Assign scenarios to ledgers
Scenario definition:
A scenario defines which fields are updated in the ledgers (in the general ledger view)
during posting. The fields that are updated by the scenarios can be used to model certain
business circumstances such as segmental reporting.
Depending on this scenario assignment in leading and non-leading ledgers and based on the
document splitting concept, the above fields will be updated in the general ledger view during
document posting and also updated in the general ledger tables for reporting purposes.
Note 2: A leading and non leading ledger can be assigned one or more scenarios, or even all
six at once.
Path: Customization -> Financial accounting (new) -> Financial accounting basic settings (new)
-> Ledgers -> Assign scenarios and customer fields to ledgers.
Assign Scenarios to Leading and Non leading ledgers
5) Define Ledger group
Ledger group definition: It defines the representative ledger in a group. Its a ledger
within a ledger group that is used to determine and check the posting period during
postings i.e. whether posting period is determined and whether the posting period is open
etc. In case of non-leading ledgers, multiple ledgers can be assigned to a single ledger
group, but only one ledger can be assigned as a representative ledger for that ledger
group.
Path: Customization -> Financial Accounting (New) -> Financial accounting basic
settings (new) -> Ledgers -> Define ledger group.
General points about leading and non leading ledgers
Almost all the functionality is same in all the ledgers.
The real time integration from financial accounting (FI) to controlling (CO) has been available
so far, but the opposite direction from CO to FI was not available in real time in earlier
versions and it requires reconciliation ledger postings to be run through transaction code
KALC during month end.
This month end procedure can be eliminated once we activate real time integration of CO with FI.
Real Time Integration of CO with FI Activation Path
Path: Customization -> Financial accounting (New) -> Ledgers -> Real time
integration of Controlling with Financial Accounting
Variants for Real Time Integration CO->FI
Variants for Real Time Integration CO->FI
It consists of:
a) The criteria for real-time integration mainly, cross-company code, cross-business area,
cross-functional area, cross-profit center and cross-segment etc.,
b) The activation date for the real time integration and assignment to Leading ledger 0L.
c) Setting up account determination for real time integration.
If necessary, the CO-FI real-time integration can be logged with a trace. If trace is active
during a CO posting, we can analyze the real-time integration data again at any time
including the following data:
a) The document number of the original CO document
b) Whether it was a transfer or a test run.
c) The document number of the follow-up document in FI if a transfer to FI took place.
d) The reason for transfer, but also the reason for a failed transfer.
d) The posting mode: online posting or subsequent transfer (subsequent posting / follow-up).
e) Posting date, posting time, and user.
f) Line item data for the documents: - All posted to objects and partner objects.
Note:
We can activate the trace in the real-time integration variant, it is then active for all users at all
times. We cannot deactivate it subsequently. As per SAP, that this may result in a significant
potentially undesired number of log entries.
Assignment of Real time Integration variant to
Company code
Trace log activation - T.code FAGLCOFITRACEADMIN
Note: If the trace is not activated in the real-time integration variant as above,
it can still be activated and deactivated user-specifically at any time using this
transaction code.
CO-FI Real Time integration - Example
Manual reposting of costs from one cost center to another cost center
Account Determination for Real Time Integration
Two options are available for Account determination, namely:
Both the steps are mainly used to trace and analyze postings in financial accounting by a
Designated value (Example: assigned GL account through account determination)
This step is used to define the account determination for the real time integration of controlling
(CO) with financial accounting (FI) based on the below combinations:
GL Account for reconciliation postings (Example: GL account 6900000005)
GL Account for reconciliation postings along with CO Business transaction.
(Example: Business Transaction: RKU1 (repost costs) with GL account 6900000005)
GL Account for reconciliation postings along with CO Business transaction and CO Object
class
(Example: Business Transaction: RKU1 (repost costs), Object class: OCOST (Overheads)
with GL account 6900000005)
Similar to FI substitution through OBBH transaction code; during real time integration of CO
with FI, this method replaces the original value in FI with the substituted value during
accounting document creation.
Account Determination without Substitution
Path: Customization -> Financial accounting (New) -> Financial accounting global
settings (New) -> Ledgers -> Real time Integration of Controlling with Financial
Accounting -> Account determination for real time integration -> Define account
determination for real time integration.
Account Determination without Substitution
Account determination without Substitution - Example
Example: Cost center reposting from Cost center N0011003 (Administration cost center)
to N0011002 (Services cost center) through cost element 6003002001 for INR 15,000. As
per the account determination, accounting document will be created using 6900000005
GL account and not through 6003002001 GL account.
Account determination with Substitution
Substitution rule - Example
Example: As per this substitution step, whenever there is any transfer posting in CO
using cost element 6003002002 which initiates real time integration with FI, during
accounting document creation, it will be replaced with the GL account 6900000004.
Account determination with substitution - Example
Example: Cost center reposting from Cost center N0011003 (Administration cost center)
to N0011002 (Services cost center) through cost element 6003002002 for INR 17,000. As
per the substitution method, accounting document will be created using 6900000004 GL
account.
Account Determination for primary cost element
Overview: This step determines whether Account determination takes place for
primary cost elements either with or without substitution method. The
reconciliation posting is made to the related GL account for primary cost
elements.
Passive split:
During clearing (during a payment, for example) the account assignments
1. of the items to clear are inherited to the clearing line item[s]
(=> such as payables line item[s]).
This step cannot be customized.
Define Zero balance clearing account mainly to provide entity wise balance for
each document
Purpose:
Each GL account will have its unique importance, based on its statement type
whether its P&L or Balance sheet, and based on reconciliation account types like A,
D, K, S etc., In order to have the same importance during document splitting, SAP
lists whether this particular GL account belongs to Asset or Customer or Vendor or
Special GL transactions or Expense or Revenue or the normal Balance sheet item
based on Item categories.
Depending upon this item category assignment to the GL account, document will be
splitted based on account assignments like cost center or profit center etc. during
transaction processing. This configuration is global in nature and has to be carried out
in coordination with Chart of accounts design for implementation. It will not be
possible to change item category assigned to an account after postings to an account
(Refer SAP OSS note 891144 Risk of subsequent changes). This configuration
should be included as a post-processing step whenever any new account is created
in COA post implementation.
GL Account Classification standard Item categories
2000 Customer
3000 Vendor
6000 Material
2) Classify document types for document splitting
Overview:
Each document type will have its unique importance based on vendor invoice,
payments, customer invoice, GL account direct journal entry, asset related
document types etc. Similar to that, SAP provides the business transactions
and variant in document splitting, which mainly classifies whether splitting
needs to be done in line with vendor invoice, payments, customer invoice,
balance sheet postings etc.,
The triggered line items in the document are posted to the zero
balance clearing account defined for each account key in customizing
(transaction code: GSP_KD1).
Overview:
This step mainly shows about three main document splitting fields namely,
Business Area, Profit center and Segment and its relative selection for Zero
balancing and Mandatory field during transaction processing.
To ensure balance of the involved entities like profit center, segment is always
0 for every posting, ensuring entity balancing.
Example: Passive split for Cost center Foreign vendor invoice with payment Vendor
Invoice: Debit Expense account with cost center and credit Vendor account.
Payment entry: During payment entry, if there is any expense account like loss on foreign
exchange, the same cost center updated in expense account during invoice entry will be
updated in Loss on foreign exchange GL account.
Document Splitting Characteristics for Controlling
Example
Foreign vendor invoice and subsequent payment
Document Splitting Characteristics for Controlling
Example Contd.
Default Splitting method provided by SAP 0000000012. It can copied and make necessary
changes if required.
Inheritance:
It means when we create a customer invoice with a revenue line item, for example, the entities
(such as business area or profit center or segment) are projected (inherited) to the customer
and tax lines in the general ledger view. Same is the case for Passive split as well.
The default account assignment can be used to replace all account assignments that could not
be derived from the posting with a constant value.
Document splitting activation with / without constants
Document splitting activation with / without constants
Click Deactivation per company code and ensure Inactive status checkbox
has not been selected
9) Extended Document splitting method
Overview: It includes assignment and activation of splitting method, Splitting rule,
Business Transaction and variant, Item category and base item category.
Customization path: Customization -> Financial accounting (New) -> General Ledger
accounting (New) -> Business Transactions -> Document Splitting -> Extended Document
Splitting
Splitting method: It defines how the document splitting is performed based on the splitting
rule assigned to the splitting method. Standard splitting method is 0000000012. If
necessary, copy the standard splitting method and create a new splitting method and make
necessary modifications in the copied splitting rule depending upon the business
requirement.
Item categories: It characterizes the items of an accounting document. It is in line with the
GL accounts account type like vendor, customer, asset, GL account etc.
Document splitting method Standard Splitting Rule
Document splitting Standard Business transactions
Document splitting Methodology
Document splitting process working methodology with an example:
Base item categories are assigned to Item categories
Item categories are assigned to Business transaction variant.
Business transaction variant is assigned to Business transactions
Both business transaction and variant are assigned to splitting method.
Document splitting Important points to be noted
We cannot activate the document splitting subsequently or deactivate it temporarily
(in general, or for individual company codes).
We cannot temporarily deactivate required entry fields or subsequently activate them in the
document splitting (like Profit center, Business area and segments). Example deactivating zero
balance clearing check or mandatory flag check, if it is already activated.
Example: The gross invoice (vendor, GL account, tax) was posted beforehand without required
entry field control of a characteristic in the document splitting. At the time of posting, the GL
account was not assigned with the characteristics that is now declared as a required entry field.
The required account assignment of the vendor line item, which is referenced in the subsequent
process (for example, payments, clearing or reversals) is missing. The subsequent process
cannot be posted as a result of the error message.
A subsequent change of the classification for the document types may lead to inconsistent
in account assignments.
Changing the zero balance clearing accounts or the account key may lead to inconsistencies
when we carry out a reversal for the document. Since the account determination is processed for
the clearing accounts when we make reversal postings, an account that deviates from the
original document is posted to during the reversal.
Document Splitting - Conclusion
SAP delivered configurations for document splitting rules in standard document splitting
methods can serve only as a guide and can work only for standard business processes.
In any SAP implementation, there may be certain scenarios or posting rules which is
customer specific or non-standard. In such cases, it may necessitate creation of
Custom document splitting methods and associated rules and doing necessary
modifications only in the Own-defined splitting method. SAP standard configurations
should not be changed.
Please refer the following SAP note numbers in order to have a complete
knowledge in Document splitting functionality
The segment field is one of the standard account assignment objects available in SAP to run
analysis for objects below company code level. Segments can be used to meet international
accounting rules (namely IAS / IFRS / US GAAP).
It simplifies the reporting options in the new general ledger and eliminates the requirement of
having a separate PCA / special purpose ledger. This has also helped in reducing many
complex month end transactions like balance sheet re-adjustment, transfer of payables /
receivables in PCA etc. As per International Financial Reporting Standards (IFRS) reporting
Financial information by line of business and by geographical area, which is known as segment
reporting compliance can be met in SAP through Segment functionality.
Segment Derivation:
Define the scenarios: The scenario segmentation has to be defined for the leading ledger
(and possibly for other non-leading ledgers).
Postings are automatically made to the segment when the profit center is posted to.
If the profit center does not have a segment, there is no segment account assignment
either. Once segment is assigned to a profit center, the segment field will turn into
display mode.
Deriving a segment through Profit center Example
Segment Reporting
a) Through Financial statement version (transaction code S_PL0_86000028).
Example: Display of GL account balances for SEGMENT 1.
Segment Reporting
b) Display segment wise line item balances (transaction code FAGLL03). Click dynamic
selection and select the respective segments in ranges. Also customized reports can
be created through report painter / writer.
New General Ledger Accounting
FI level Planning
New GL accounting - Planning
Overview:
Planning can be carried out in the New GL. This planning process is similar to that of
the planning in controlling. It can be used in New GL accounting to enter and distribute
plan data to create budgets, forecast and other reports.
Path:
Customization -> Financial accounting (New) -> General Ledger accounting (New)
-> Planning
Step 1: Define Plan periods
In this activity, we can determine the posting periods allowed for entering plan data. We
need to assign the planning period to the posting period variant which is assigned to the
company code.
Step 2: Define Plan versions
In this activity, we can maintain plan versions for each ledger. For each fiscal
year, we can post plan data to an unlimited number of versions.
Like planning in FI-SL, we can also perform integrated level planning and copy the plan
data from CO-OM and CO-PA.
Unlike planning in FI-SL in classic GL, Allocations (plan assessment and plan distribution)
can be done in planning in New GL accounting.
New General Ledger Accounting
Profit center and Segments: Customization -> Enterprise structure -> Definition >
Profit center and Segment.
Real time integration of CO with FI: Customization -> Financial accounting (New) -
> Financial accounting global settings (New) -> Real time integration of controlling
with financial accounting.
FI level planning: Customization -> Financial accounting (New) -> General ledger
accounting (New) -> Planning. This is a replacement for FI-SL level planning
Transaction KALC is no longer available (by default) after New General Ledger
Accounting has been activated an information message points out the new
real-time integration between CO and FI.
Balance sheet adjustment (=> SAPF180 or transaction codes F.5D and F.5E
example for creation of business area balance sheets)
Profit and Loss adjustment (=> SAPF181 or transaction code F.50 example
for post capitalization of cash discounts)
General Information
Reconciliation with CO
Migration Concept