New General Ledger Accountingand Industry SolutionsSolution Management ERP FinancialsSAP AG
New General Ledger Accounting and IndustrySolutions: TopicsNew General Ledger Accounting: Advantages and ConceptNew General Ledger Accounting always offers advantagesSame range of functions as in classic General Ledger Accounting - and moreFeatures of New General Ledger Accounting Parallel Accounting (Account Approach, Ledger Approach in New General Ledger Accounting) Profit Center and Segment Reporting Financial Statements Using Industry-Specific CharacteristicsUse of industry solutions based on component FI-CA (supported only fromSAP ERP 6.0 onward)FI-CA and Online Document Splitting in New General Ledger AccountingOverview: New General Ledger Accounting and Industry Solutions
New General Ledger Accounting – Advantagesand Concept Document Entry Multidimensional: Zero Balance Acct / Segmt Debit Credit Acct / Segmt Debit Credit ---------- 60 ---------- A 60 ---------- A 100 40 ---------- B 40 60 ---------- B Online ---------- A 40 Document ---------- B SplittingAdvantages of New General Ledger Multiledger UpdateAccounting: Multiple Valuations Fin. & Mgmt Accounting in one environment Local GAAP Extensibility for customer fields US GAAP Support of internat. reporting requirements xxx xxx xxx Support of parallel accounting IFRS xxx xxx xxx xxx xxx xxx Fast Close Greater transparency Reduced TCO Multidimensional
New General Ledger Accounting Always OffersAdvantagesReal-time integration of Controlling with New General Ledger Accounting foractual data. This eliminates the need for periodic reconciliation activities.The following key fields are contained in the totals record of New GeneralLedger Accounting: The fields Trading Partner and Consolidation Transaction Type. These fields reduce the reconciliation effort required in preparing consolidation. The Functional Area field is delivered as standard and can be used to set up a profit and loss statement in accordance with cost of sales accounting. With the report/report interface, you can use the drilldown functions to switch from the FI report to the CO report. The Cost Element field can be used as an additional characteristic for evaluations and is filled automatically.
Same Range of Functions as in ClassicGeneral Ledger Accounting – And MoreAll SAP industry solutions can be used in combination with New GeneralLedger Accounting if the functions correspond to those of classic GeneralLedger Accounting.You can additionally deploy the following significant functions in New GeneralLedger Accounting: Parallel accounting using parallel ledgers Financial statements for additional dimensions such as profit center or segment Financial statements for industry-specific dimensions such as grant or fund (Grant and fund are new standard fields from rel. ERP2005 onward)To find out how you can do this, see the next slides.
Parallel AccountingCompanies are increasingly being required to produce consolidated financialstatements for different accounting principles (IFRS, US GAAP, or local legalrequirements such as the German HGB). In SAP ERP, two techniques can be used to portray parallel accounting: the ledger approach or the account approach.SAP considers both approaches as equally valid. To find out which approach isappropriate for you, see SAP Note 779251.In general, both approaches are available in New General Ledger Accounting.However, the ledger approach cannot be used in certain industries. To find outwhich ones, see the slide entitled "New General Ledger Accounting Features +Specific Industry Solutions" in this presentation.
Reporting on Profit Center, Segment, andBusiness AreaIFRS and US GAAP both require segment reporting (balance sheet and profit and lossstatement or just the profit and loss statement). Segment reporting provides insights intothe business areas or subareas of a company.Customers who have been using the business area in classic General Ledger Accountingcan continue to use the business area in the same way as they are used to doing. Note that, with the standard settings for New General Ledger Accounting, the segment is derived from the profit center. In general, the industry solution provides New General Ledger Accounting with the profit center with the corresponding level of completeness. The segment is derived on the basis of the profit center information. However, this is not the case in certain industries. To find out which ones, see the slide entitled "New General Ledger Accounting Features + Specific Industry Solutions" in this presentation. The industry solution supplies New GL with the account assignment segment so that a balance sheet can be produced for each segment in New General Ledger Accounting. For information on how to set up segment derivation in the industry solution, see the documentation on the relevant industry solution.For the creation of the balance sheet, settings need to be made in Customizing for OnlineDocument Splitting.
Financial Statements Using Industry-SpecificCharacteristics In some industries, it is necessary to produce financial statements that apply characteristics specific to those industries. SAP provides standard fields for this, such as grant and fund (IBU Public Sector). Moreover, you may want to use additional customer fields. If you use the fields delivered by SAP, they are transferred correctly to New General Ledger Accounting so that you can create the financial statements. If customer fields are used, you need to ensure that they are filled correctly when a document is created. Note that, to create a balance sheet for characteristics selected in addition to the company code, settings need to be made in Customizing for Online Document Splitting. For detailed information on the Online Document Splitting function, see SAP Service Marketplace at https://service.sap.com/GL under General Ledger > Media Library.
Use of FI-CAMany industry solutions use the component FI-CA FI-CA is a subledger in Financial Accounting capable of automatically processing a large number of postings. Here, the receivables and payables relating to a business partner in FI-CA are posted to a contract account. The posting information relevant to General Ledger Accounting is transferred periodically in aggregated form to General Ledger Accounting. Note: SAP offers a version of FI-CA from SAP ERP 6.0 onward!
Industry Solutions with FI-CA Financial Services IBU Banking (Leasing, Loans) IBU Insurance (FS-CD) Public Services IBU Healthcare & Higher Education IBU Public Sector (PS-CD) Service Industries IBU Media IBU Telecommunications IBU Utilities IBU Travel and Transportation
FI-CA and Online Document Splitting in NewGeneral Ledger AccountingFI-CA Uses New General Ledger Accounting in SAP ERP 6.0 in the same way as classic General Ledger Accounting. Supports the account assignment Segment (only in combination with NewGL!). Enters corresponding default segments in the tax items and bank items (Customizing) Planned for EhP4: Tax items may be split according to the segments in the revenue items. Each item is assigned to one segment only. (See also the documentation on the FI-CA component.) Planned for EhP4: Uses profit centers in the receivable line itemsWhen FI-CA is used, online document splitting is not performed in New GeneralLedger Accounting; instead, clearing entries are only created for the additionalbalancing units.Usage of the following features is either not possible or restricted: Balance sheet at profit center level is restricted, as posting to bank accounts won’t be split according to the Profit centers of the cleared items. Profit center assignment for receivables, payables (direct assignment) and tax items (automatic split) is possible Balance sheet at segment level (restricted usage)For more information, see the slide entitled "New General Ledger Accounting Featuresand Specific Industry Solutions" in this presentation.
Combinations of CharacteristicsWhen filled in combination with other characteristics such as Profit Center andSegment, the Business Area characteristic is treated differently in thedocuments. For example, the business area is generally never assigned in the tax items. The field is always empty. Planned for EhP4: Business area is assigned to tax items if and only if tax items are split according to the account assignments of the revenue items. The segment, on the other hand, can be assigned in the tax items. If only the characteristic Business Area is transferred (such as in the revenue items), online document splitting can subsequently enhance the tax item with the business area. If, however, there is a combination of characteristics, online document splitting cannot subsequently enhance the tax item with the business area. In this case, the balance sheet for the business area is incomplete. In general: If tax items are split, GSBER, PRCTR, SEGMENT are inherited from the revenue items, if tax items aren’t split: GSBER and PRCTR are initial and a default SEGMENT may be assigned
New General Ledger Accounting Features andSpecific Industry SolutionsNew GL Accounting Features: Industry Solutions / Components PS-M FI-CA JVA CML TRMParallel ledgers YES YES 3) YES 5) NO YES 7)P&L statement at level of Profit center YES YES YES YES YES 8) Segment YES YES YES YES YES 8) Business area YES YES YES YES YES Industry-spec. acct assignments YES 1) YES NO NO YES 9)Balance sheet at level of Profit center YES RST4) NO 6) NO YES 8) Segment YES RST4) NO 6) NO YES 8) Business area YES RST4) NO 6) NO YES Industry-spec. acct assignments YES 2) YES NO NO YES 8)For a key to the abbreviations and footnotes, see the notes to this slide and the next slide.
New General Ledger Accounting Features andSpecific Industry Solutions: Key to AbbreviationsFootnotes to the previous slide: From SAP ERP 6.0, table template for the dimensions Fund, Grant, Functional Area Does not apply to the dimension Functional Area Possible as of SAP ERP 6.0 Enhancement Package 2. (See Rel. Note: FICA_602_Closop) You can use the ledger group in the foreign currency valuation program You can add items with ledger group to standard postings via the FI-CA event-technique You can use the ledger group in the mode of customer-specific posting-programs. Profit center : No profit center split for bank items Segment: Restricted, only default segment in tax items (if no split is active) and bank items Business Area: Tax items are only assigned with business area if split is active. JVA postings always update all ledgers in New General Ledger Accounting. Ledger-specific postings from JVA are not possible. JVA is integrated with the leading ledger in New General Ledger Accounting, which means in particular that only valuation postings in the leading ledger are posted to JVA. Due to the different document splitting logic in New General Ledger Accounting and JVA, reconciliation between the two is only possible at the level of the company code/account, but not at the account assignment level (profit center/segment/business area). Note: New GL doc split together with JVA split is not supported. If TRM is used in combination with CML, derivation occurs in accordance with the accounting principles applied. Derivation via BAdI or Controlling object. Derivation via BAdI