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New Gl Functionality
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
Guntupalli Hari Krishna
New General Ledger Accounting - Topics
Sr. No. Topics
1 New GL Accounting – Overview
2 New GL – Evolution, Architecture & Technical
Overview
3 New GL – Activatio...
New General Ledger Accounting - Foreword
The increased demands on general ledger accounting requires new architecture
concepts for today’s business software. The f...
mySAP ERP – Evolution history
Evolution History of SAP R/3 to mySAP ERP:
• SAP R/3 Release 4.0B Release Date June 1998
• SAP R/3 Release 4.5B Release Da...
mySAP ERP ECC 6.0 – Technical Overview – Fast
Facts
SAP R/3 Enterprise 4.7:
151,600 Tables & 75,000 Transaction codes (app...
***Plus, lots of BAPI’s, BADI’s and User Exits are added in ECC 6.0 version.
New GL Activation Concept
New GL Activation concept
Activation Details
• Activation of New General Ledger accounting
• Activate / Deactivate old customization paths
• Update ...
New General Ledger – Activation Concept
Path: Customization -> Financial accounting -> Financial accounting global
settings -> Activate new GL accounting (Or) Tra...
New General Ledger – Activation Concept
Notes:
a) The new general ledger is activated automatically in initial installations.
b) If existing customers want to use...
New GL accounting – Menu path after activation
- The paths for the new general ledger accounting are in addition to the
existing Customizing paths.
- The conventional Fi...
New GL Accounting – Activate/Deactivate Old IMG
Program name: RFAGL_SWAP_IMG_OLD (in SE38 T.Code)
New GL Activation – Update / Read from Classic
General ledger
• Overview:
This section is applicable for clients who migra...
New GL Activation – Update / Read from Classic General ledger
Path: Customization -> Financial accounting (New) -> Financial accounting
global settings (New) -> Tools -> Deactivate upd...
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 ...
Classic with New General Ledger – Balance Comparison – as
an Example
New General Ledger Accounting
Parallel Valuation – Parallel Ledger Concept
Parallel Valuation - Overview
Parallel Financial reporting:
• Parallel financial reporting means that a company's financial statements have to
be create...
IFRS in Telecom Industry - Overview
Following IFRS standards are applicable to Telecom industry:
• Inventory
• Long-lived assets
• Mass asset accounting
• Dec...
Parallel Valuation – Ledger concept
New General Ledger accounting uses the ledgers known from the application component FI-SL
to save totals values. It consis...
Parallel valuation – Ledger concept
Customization steps
• Define Ledgers for general ledger accounting
• Define currencies...
1) Define Ledgers for general ledger accounting
Overview: SAP provides the Leading ledger “0L” by default with the standard system
and assigned to the summary table FAGLF...
2) Define currencies of Leading ledger
Overview: It takes the first currency as the company code currency by default. If t...
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. Add...
4) Assign scenarios to ledgers
Scenario definition:
• A scenario defines which fields are updated in the ledgers (in the general ledger view)
during post...
Assign Scenarios to Leading and Non leading ledgers
5) Define Ledger group
Ledger group definition: It defines the representative ledger in a group. It’s a ledger
within a le...
General points about leading and non leading ledgers
• Almost all the functionality is same in all the ledgers.
• Standard reporting in multiple ledgers is possible.
• Posting...
Parallel Ledgers – Postings to all Ledgers through FB01L /
FB50L
In new GL, it is possible to post accruals / journal vouc...
Parallel Ledgers – Postings to all Ledgers through FB01L /
FB50L
Open item management cannot be posted per individual ledg...
Real Time Integration of CO with FI
Real Time Integration of CO with FI
Activation details
• Defining Variants for Real Time Integration and assign variants to
Company code
• Real Time Integrati...
Real Time Integration of CO with FI - Advantages
Overview:
The real time integration from financial accounting (FI) to controlling (CO) has been available
so far, but the ...
Real Time Integration of CO with FI – Activation Path
Path: Customization -> Financial accounting (New) -> Ledgers -> Real time
integration of Controlling with Financial Accoun...
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-functiona...
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 deactivat...
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:
a) Account de...
Account Determination without Substitution
Path: Customization -> Financial accounting (New) -> Financial accounting global
settings (New) -> Ledgers -> Real time In...
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) t...
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 i...
Account determination with substitution - Example
Example: Cost center reposting from Cost center N0011003 (Administration cost center)
to N0011002 (Services cost center) t...
Account Determination for primary cost element
Overview: This step determines whether Account determination takes place fo...
New General Ledger Accounting
Document Splitting Concept
New General Ledger – Document
splitting Overview
Overview:
Accounting documents contain accounts (such as revenues or expe...
Document splitting – Example (1) – Active splitting
This entry shows how expenses account’s cost center and its relative profit center is
automatically derived into the vendo...
Document splitting – Example (2) – Passive splitting
This is the payment entry for the previous vendor invoice. Even though, no profit
center provided to the Bank or vendor ac...
Document splitting – Example (3) – Zero balance clearing
This entry shows how the accounting document will be splitted in GL view when there is a
different CO object (cost center)...
Major Steps involved in Document Splitting – Overview
Passive split:
During clearing (during a payment, for example) the a...
Document splitting – Customization details
• GL Account classification based on standard Item categories
• Classification of document types for document splitting
• ...
Definition of Extended splitting – Splitting Rule, Business transactions and
its variant
1) GL Account Classification
• Overview:
The first step to customize document splitting is to classify the GL accounts.
Cl...
GL Account Classification – standard Item categories
Item Categories Description
1000 Balance Sheet Account
2000 Customer
...
2) Classify document types for document splitting
Overview:
Each document type will have its unique importance based on vendor invoice,
payments, customer invoice, GL accou...
Document splitting – Classify document type for document
splitting
3) Document Splitting – Define Zero balance
clearing account
• The zero balance indicator setting, ensures that the docume...
Document Splitting – Define Zero balance clearing account
4) Document splitting characteristics for GL Account
Overview:
This step mainly shows about three main document splitting ...
Document Splitting Characteristics for GL accounting
5) Document Splitting Characteristics for
Controlling
Overview: Similar to document splitting characteristics for General ledgers, document splitting
characteristics for CO obj...
Document Splitting Characteristics for Controlling
– Example
Foreign vendor invoice and subsequent payment
Document Splitting Characteristics for Controlling –
Example Contd.
Foreign vendor invoice and subsequent payment
6) Document splitting – post capitalization of
cash discount to assets
The activation of the "Post-Capitalization of Cash Discount to Assets" has the
effect that the cash discount of an asset-r...
Post capitalization of cash discount to assets –
Example
Vendor Invoice and subsequent payment with Discount
Post capitalization of cash discount to assets –
Example Contd..
Vendor Invoice and subsequent payment with Discount
7) Document splitting – Defining Constants
Document splitting – Defining constants – Example
Example: Transfer of amount from one vendor account to another vendor account.
Even though no account assignments made dur...
8) Document splitting - Activation
Overview:
Splitting is first activated Client-wide in Customizing. In a subsequent step, we can activate /
deactivate spli...
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, I...
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
• I...
Document splitting – Important points to be noted
• We cannot activate the document splitting subsequently or deactivate it temporarily
(in general, or for individual compa...
Document Splitting - Conclusion
SAP delivered configurations for document splitting rules in standard document splitting
m...
New General Ledger Accounting
Segment reporting
1. Segment reporting - Overview
Overview:
The segment field is one of the standard account assignment objects available in SAP to run
analysis for “object...
Segment reporting – Deriving a segment - Steps
Perform the following steps in order to post, analyze and display
segments in documents in new General Ledger
• Define the...
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 SEGM...
Segment Reporting
b) Display segment wise line item balances (transaction code FAGLL03). Click dynamic
selection and selec...
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 controlli...
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 peri...
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 unlimit...
Step 3: Assign plan version to Fiscal year and
company code
Step 4: Planner profile and layout – standard SAP layout
Step 5: Define Document types and number ranges for
planning
Front end – Enter Plan data – Tcode GP12N
Front end – Plan Vs. Actual report Tcode
S_PL0_86000029
FI Level Planning – Additional points
Planning in FI in new GL accounting is based on the combination of GL accounts and
Profit center.
Like planning in FI-SL, ...
New General Ledger Accounting
Changes in ECC 6.0 version from
earlier versions
1. Customization changes
Additional nodes added in FI customization – an overview:
• Profit center and Segments: Customization -> Enterprise struct...
Front end changes
New transaction codes / replacement of old transaction codes – an overview:
• Balance carry forward transaction code for G...
Eliminated closing activities in New GL
Examples of eliminated closing activities in New General ledger – an
overview:
• Transaction KALC is no longer available (...
SAP Note numbers for reference
Topics Note Numbers
General Information
New GL - General Information 756146
Reconciliation with CO
New GL - Reconciliation...
New GL - Parallel Accounting 779251
SAP Note numbers for reference
Topics Note Numbers
Profit center and Segment Reporting
New GL - Number of profit centers in classic and new GL accounting...
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New gl functionality_by_guntupalli_hari_krishna_

  1. 1. New Gl Functionality New Gl Functionality By Guntupalli Hari Krishna SAP ERP T.CODE: FAGL_FLEXGL_IMG
  2. 2. SAP FI/CO – New General Ledger accounting my SAP ERP ERP Central Component (ECC) 6.0 Version Guntupalli Hari Krishna
  3. 3. New General Ledger Accounting - Topics
  4. 4. Sr. No. Topics 1 New GL Accounting – Overview 2 New GL – Evolution, Architecture & Technical Overview 3 New GL – Activation Concept 4 Parallel Ledger Concept 5 Real time Integration of CO with FI 6 Document Splitting Concept 7 Segmental Reporting 8 FI Level Planning 9 Changes in ECC 6.0 from earlier versions
  5. 5. New General Ledger Accounting - Foreword
  6. 6. The increased demands on general ledger accounting requires new architecture concepts for today’s business software. The following list contains some of the aspects determining the range of functions required of modern, forward-looking general ledger accounting: • Standardization of International accounting principles • Necessity of quicker period-end closing • Simultaneous implementation of company-specific and industry-specific reporting requirements • Cost reduction • Increased Data transparency • Greater convergence between financial and management accounting SAP set out to meet these requirements, and New General Ledger Accounting in mySAP ERP is the result incorporating all of the above points.
  7. 7. mySAP ERP – Evolution history
  8. 8. Evolution History of SAP R/3 to mySAP ERP: • SAP R/3 Release 4.0B Release Date June 1998 • SAP R/3 Release 4.5B Release Date March 1999 • SAP R/3 Release 4.6B Release Date Dec 1999 • SAP R/3 Release 4.6C Release Date April 2001 • SAP R/3 Enterprise Release 4.70 Release Date March- Dec 2003 • mySAP ERP 2004 (ECC 5.0 version) – 2003 to 2004 • mySAP ERP 2005 (ECC 6.0 version) – 2004 to 2005 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.
  9. 9. mySAP ERP ECC 6.0 – Technical Overview – Fast Facts SAP R/3 Enterprise 4.7: 151,600 Tables & 75,000 Transaction codes (approx) mySAP ERP ECC 6.0: 309,300 Tables & 105,000 Transaction codes (approx) Three new tables added in new GL accounting namely: • FAGLFLEXT: It replaces table GLT0. With this table, many scenarios can be portrayed. Definition of own customer fields can be possible. • 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. • BSEG-ADD: Used in particular in connection with the ledger approach to portray parallel accounting.
  10. 10. ***Plus, lots of BAPI’s, BADI’s and User Exits are added in ECC 6.0 version.
  11. 11. New GL Activation Concept
  12. 12. New GL Activation concept
  13. 13. Activation Details • Activation of New General Ledger accounting • Activate / Deactivate old customization paths • Update / Read from Classic General Ledger • Balance comparison – Classic General Ledger with New General Ledger (helpful during migration)
  14. 14. New General Ledger – Activation Concept
  15. 15. Path: Customization -> Financial accounting -> Financial accounting global settings -> Activate new GL accounting (Or) Transaction code: FAGL_ACTIVATION
  16. 16. New General Ledger – Activation Concept
  17. 17. Notes: a) The new general ledger is activated automatically in initial installations. b) If existing customers want to use the new general ledger, they have to activate it using a Customizing transaction or through FAGL_ACTIVATION. c) The activation flag is set in each client. d) Activating new general ledger will result in system-wide changes to the application menu and screens and customizing paths
  18. 18. New GL accounting – Menu path after activation
  19. 19. - The paths for the new general ledger accounting are in addition to the existing Customizing paths. - The conventional Financial Accounting paths will initially remain available in their present form.
  20. 20. New GL Accounting – Activate/Deactivate Old IMG Program name: RFAGL_SWAP_IMG_OLD (in SE38 T.Code)
  21. 21. New GL Activation – Update / Read from Classic General ledger • 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.
  22. 22. New GL Activation – Update / Read from Classic General ledger
  23. 23. Path: Customization -> Financial accounting (New) -> Financial accounting global settings (New) -> Tools -> Deactivate update of classic general ledger (GLT0).
  24. 24. New GL Activation – Update / Read from Classic General ledger
  25. 25. 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. Note: In contrast to CO, Data is often written to FI in version 001 only. Path: Customization -> Financial accounting (New) -> Financial accounting Global settings (New) -> Tools -> Compare ledgers
  26. 26. Classic with New General Ledger – Balance Comparison – as an Example
  27. 27. New General Ledger Accounting Parallel Valuation – Parallel Ledger Concept
  28. 28. Parallel Valuation - Overview
  29. 29. Parallel Financial reporting: • Parallel financial reporting means that a company's financial statements have to be created in accordance with different accounting rules. This is because a local view (=> by U.S. GAAP in the U.S.) is no longer sufficient in a globalized world of creditors (banks, shareholders) and business partners. An internationally recognized account standard is increasingly in demand. • Examples of internationally recognized accounting rules include: - IAS/IFRS - US GAAP • Parallel valuation approach can be modeled in three ways in SAP: - Creating a different company code for different valuation approach - Creating additional GL accounts in the same COA - Creating Parallel ledgers using same GL accounts in COA – also called as ledger solution in SAP With New General Ledger in place, Ledger solution can be the most effective solution approach to address parallel accounting requirements.
  30. 30. IFRS in Telecom Industry - Overview
  31. 31. Following IFRS standards are applicable to Telecom industry: • Inventory • Long-lived assets • Mass asset accounting • Decommissioning liabilities • Intangible assets • Leases • Revenue Recognition • Segment Reporting • Out of the various IFRS standards as stated above, Revenue Recognition is a complex issue in telecom industry. Part of the complexity arises due to different types of telecom services. Example – Fixed line service have recognition issues that may differ from wireless services. • With New GL functionality, Segmental Reporting can be easy out which is very crucial for telecom industry, having diversified nature of services/segments. • With New GL functionality, Revenue recognition would be simplified by using the ledger concept for varied nature of services
  32. 32. Parallel Valuation – Ledger concept
  33. 33. New General Ledger accounting uses the ledgers known from the application component FI-SL to save totals values. It consists of two ledgers, namely: - Leading Ledger - Non Leading Ledger 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. Non Leading Ledger: We can also create additional ledgers called as non-leading ledgers for each company code. By having different characteristic values and fiscal year definitions, these additional ledgers can be used for different purposes, such as for parallel accounting or for management reporting. 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.
  34. 34. Parallel valuation – Ledger concept Customization steps • Define Ledgers for general ledger accounting • Define currencies of leading ledger • Define and Activate non leading ledgers • Assign scenarios to ledgers • Define ledger group
  35. 35. 1) Define Ledgers for general ledger accounting
  36. 36. Overview: SAP provides the Leading ledger “0L” by default with the standard system and assigned to the summary table FAGLFLEXT by default. Similar to leading ledger, non leading ledgers need to be created in this step. Path: Customization -> Financial accounting (new) -> Financial accounting basic settings (new) -> Ledgers -> Define Leading ledger.
  37. 37. 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
  38. 38. 3) Define and activate Non leading ledgers
  39. 39. 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
  40. 40. 4) Assign scenarios to ledgers
  41. 41. 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. • There are 6 standard scenarios provided by SAP, namely: – Cost center update (FIN_CCA) – Preparations for consolidation (FIN_CONS) – Business area (FIN_GSBER) – Profit center update (FIN_PCA) – Segmentation (FIN_SEGM) – Cost-of-sales accounting (FIN_UKV) • 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 1: We cannot define our own scenarios • 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.
  42. 42. Assign Scenarios to Leading and Non leading ledgers
  43. 43. 5) Define Ledger group Ledger group definition: It defines the representative ledger in a group. It’s 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.
  44. 44. General points about leading and non leading ledgers
  45. 45. • Almost all the functionality is same in all the ledgers. • Standard reporting in multiple ledgers is possible. • Postings into multiple ledgers / per specific ledger are possible. Per specific ledger can be posted through FB01L / FB50L transaction codes.
  46. 46. Parallel Ledgers – Postings to all Ledgers through FB01L / FB50L In new GL, it is possible to post accruals / journal vouchers specific to a particular ledger. SAP has created new easy access transactions which allow users to key in the ledger group at the time of posting. If ledger group is not specified at the time of transaction processing, it will be posted to all the defined ledgers. Example: Incoming invoice, Outgoing invoice, Payments etc.
  47. 47. Parallel Ledgers – Postings to all Ledgers through FB01L / FB50L Open item management cannot be posted per individual ledger. Example: Incoming Bank account which is managed on open item basis cannot be posted only to non-leading ledger N1.
  48. 48. Real Time Integration of CO with FI
  49. 49. Real Time Integration of CO with FI
  50. 50. Activation details • Defining Variants for Real Time Integration and assign variants to Company code • Real Time Integration – Trace / Log – an overview c) Account determination for Real time integration – with / without substitution rule
  51. 51. Real Time Integration of CO with FI - Advantages
  52. 52. Overview: 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.
  53. 53. Real Time Integration of CO with FI – Activation Path
  54. 54. Path: Customization -> Financial accounting (New) -> Ledgers -> Real time integration of Controlling with Financial Accounting
  55. 55. Variants for Real Time Integration CO->FI
  56. 56. Variants for Real Time Integration CO->FI
  57. 57. 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. Real Time Integration CO->FI – Trace / Log: 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.
  58. 58. Assignment of Real time Integration variant to Company code
  59. 59. Trace log activation - T.code FAGLCOFITRACEADMIN
  60. 60. 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.
  61. 61. CO-FI Real Time integration - Example
  62. 62. Manual reposting of costs from one cost center to another cost center
  63. 63. Account Determination for Real Time Integration Two options are available for Account determination, namely: a) Account determination without substitution b) Account determination with substitution 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) Option 1: Account determination without substitution: 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) Option 2: Account determination with substitution – Extended Account determination 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.
  64. 64. Account Determination without Substitution
  65. 65. 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.
  66. 66. Account Determination without Substitution
  67. 67. Account determination without Substitution - Example
  68. 68. 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.
  69. 69. Account determination with Substitution
  70. 70. Substitution rule - Example
  71. 71. 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.
  72. 72. Account determination with substitution - Example
  73. 73. 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.
  74. 74. 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. Note: If it is not ticked, during reversal of the CO document, accounting document will be posted in FI only based on the original value and not based on the designated value assigned through account determination procedures mentioned in the previous slides.
  75. 75. New General Ledger Accounting
  76. 76. Document Splitting Concept
  77. 77. New General Ledger – Document splitting Overview Overview: Accounting documents contain accounts (such as revenues or expenses) that carry account assignments like cost center, profit center etc., Such accounts serve as the basis for providing account assignments to dependent accounts (such as accounts payable or receivables, tax, for example) according to context (such as invoice or payment). In short, splitting procedure defines how and under which circumstances document splits will be performed. Document splitting views: When new general ledger accounting is active, a financial accounting document always has two views, namely - Entry view: View of how a document also appears in the sub ledger views / sub ledgers (AP / AR / AA ) - General ledger view: View of how a document appears (only) in the general ledger.
  78. 78. Document splitting – Example (1) – Active splitting
  79. 79. This entry shows how expenses account’s cost center and its relative profit center is automatically derived into the vendor account through online active splitting functionality
  80. 80. Document splitting – Example (2) – Passive splitting
  81. 81. This is the payment entry for the previous vendor invoice. Even though, no profit center provided to the Bank or vendor account during payments, but it derives the profit center from the vendor invoice and will be updated in the GL view.
  82. 82. Document splitting – Example (3) – Zero balance clearing
  83. 83. This entry shows how the accounting document will be splitted in GL view when there is a different CO object (cost center) in debit and credit entry. Zero balance clearing account (which will be provided in the customization) will be debited and credited with the same amount, mainly to zero-wise each of the profit center’s balance and also to have a complete accounting entry for each profit centers.
  84. 84. Major Steps involved in Document Splitting – Overview 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. Active (rule-based) split: 2. The system splits documents due to (provided or custom defined ) splitting rules Splitting rules can be configured Clearing lines/zero balance formation by document: 3. The system creates new clearing lines automatically to achieve a split You can control this process with the "zero balance flag"
  85. 85. Document splitting – Customization details
  86. 86. • GL Account classification based on standard Item categories • Classification of document types for document splitting • Define Zero balance clearing account – mainly to provide entity wise balance for each document • Document splitting characteristics for GL account Document splitting characteristics for Controlling • Post capitalization of cash discount to assets • Definition of constants – mainly to provide default business area, profit center etc., • Activation of Document splitting
  87. 87. Definition of Extended splitting – Splitting Rule, Business transactions and its variant
  88. 88. 1) GL Account Classification • Overview: The first step to customize document splitting is to classify the GL accounts. Classification of the GL accounts is the process to assign GL accounts to an item category. SAP provided standard item categories by default. With the classification of GL accounts, document splitting recognizes how the individual line items are handled. • 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.
  89. 89. GL Account Classification – standard Item categories Item Categories Description 1000 Balance Sheet Account 2000 Customer 2100 Customer: Special G/L Transaction 3000 Vendor 3100 Vendor: Special G/L Transaction 4000 Cash Account 5100 Taxes on Sales/Purchases 5200 Withholding Tax 6000 Material
  90. 90. 2) Classify document types for document splitting
  91. 91. 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., Depending upon the characteristics of the document type, it needs to be assigned to the business transactions and variant. Note: If a new document type has been created, immediately it has to be assigned to the business transaction and variant for document splitting, otherwise it would throw an error during transaction entry.
  92. 92. Document splitting – Classify document type for document splitting
  93. 93. 3) Document Splitting – Define Zero balance clearing account • The zero balance indicator setting, ensures that the document is balanced according to document split characteristics for the selected dimensions such as Business area, Profit center and Segment etc., • In case the balance of account assignment objects is not zero after document splitting the system generates additional clearing items. • 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). • Therefore, a clearing account has to be created for the additional clearing line items.
  94. 94. Document Splitting – Define Zero balance clearing account
  95. 95. 4) Document splitting characteristics for GL Account 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. Zero Balance checkbox: To ensure balance of the involved entities like profit center, segment is always ‘0’ for every posting, ensuring ‘entity balancing’. Mandatory flag checkbox: It is an extension of the field status for accounts in which the characteristics cannot be “entered” during document entry and that cannot be controlled through the field status. Example: Vendor lines should always include a profit center or a segment. It is a check as to whether business process equivalent business transaction variant is selected (which determines whether a splitting can be found)
  96. 96. Document Splitting Characteristics for GL accounting
  97. 97. 5) Document Splitting Characteristics for Controlling
  98. 98. Overview: Similar to document splitting characteristics for General ledgers, document splitting characteristics for CO objects like Cost center, Internal Order, WBS element can to be provided. Based on this, during transaction processing (example payments), it will refer the original transaction (example invoice), and derive the cost center from the invoice and update in the payment document. 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.
  99. 99. Document Splitting Characteristics for Controlling – Example Foreign vendor invoice and subsequent payment
  100. 100. Document Splitting Characteristics for Controlling – Example Contd. Foreign vendor invoice and subsequent payment
  101. 101. 6) Document splitting – post capitalization of cash discount to assets
  102. 102. The activation of the "Post-Capitalization of Cash Discount to Assets" has the effect that the cash discount of an asset-relevant payment is not posted to the cash discount account, but directly to the asset.
  103. 103. Post capitalization of cash discount to assets – Example Vendor Invoice and subsequent payment with Discount
  104. 104. Post capitalization of cash discount to assets – Example Contd.. Vendor Invoice and subsequent payment with Discount
  105. 105. 7) Document splitting – Defining Constants
  106. 106. Document splitting – Defining constants – Example
  107. 107. Example: Transfer of amount from one vendor account to another vendor account. Even though no account assignments made during vendor transfer, it would take the default account assignments from the “constants” in customization
  108. 108. 8) Document splitting - Activation
  109. 109. Overview: Splitting is first activated Client-wide in Customizing. In a subsequent step, we can activate / deactivate splitting in each company code. 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. Default account assignment: The default account assignment can be used to replace all account assignments that could not be derived from the posting with a constant “value”.
  110. 110. Document splitting activation with / without constants
  111. 111. Document splitting activation with / without constants
  112. 112. Click Deactivation per company code and ensure “Inactive status checkbox has not been selected
  113. 113. 9) Extended Document splitting method
  114. 114. • 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. • Splitting Rule: Consists of assignment of Business transactions and its variant. • Business Transactions: It’s a summation of all the characteristics of a typical business process. SAP delivers standard 10 business transactions and its permitted item categories. • Business Transaction variant: Special set of characteristics for a business transaction. It can be used to restrict further the item categories specified in the business transaction. SAP also delivers standard business transaction variant for the business transactions. • Item categories: It characterizes the items of an accounting document. It is in line with the GL account’s account type like vendor, customer, asset, GL account etc.
  115. 115. Document splitting method – Standard Splitting Rule
  116. 116. Document splitting – Standard Business transactions
  117. 117. Document splitting Methodology
  118. 118. 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.
  119. 119. Document splitting – Important points to be noted
  120. 120. • 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. • We cannot activate the open item management of an account subsequently. In particular, we cannot convert the documents that are already posted. The required information is not created for the document splitting, which means that the item now open in this account cannot be cleared. • 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.
  121. 121. 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. Note – SAP Note Numbers relating to Document splitting Please refer the following SAP note numbers in order to have a complete knowledge in Document splitting functionality - 1085921 (new GL document splitting) and - 891144 (risks involved in subsequent changes in Document splitting)
  122. 122. New General Ledger Accounting
  123. 123. Segment reporting
  124. 124. 1. Segment reporting - Overview
  125. 125. Overview: 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: • Derive through profit center by assigning in profit center master data. • Passing a JV using segments (directly assigning the segment at document processing level itself) • Derive through BADi (FAGL_DERIVE_SEGMENT).
  126. 126. Segment reporting – Deriving a segment - Steps
  127. 127. Perform the following steps in order to post, analyze and display segments in documents in new General Ledger • Define the segment. Path: SPRO -> Enterprise Structure -> Financial Accounting -> Define segment. • Define the scenarios: The scenario segmentation has to be defined for the leading ledger (and possibly for other non-leading ledgers). • Derive the segment. Segment can be derived in three ways: SAP recommendation on usage of segments: • The usage of segment has been officially released by SAP in connection with the usage of profit centers only – Refer SAP note number 1035140. • 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”.
  128. 128. Deriving a segment through Profit center – Example
  129. 129. Segment Reporting
  130. 130. a) Through Financial statement version (transaction code S_PL0_86000028). Example: Display of GL account balances for SEGMENT 1.
  131. 131. 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.
  132. 132. New General Ledger Accounting
  133. 133. FI level Planning
  134. 134. New GL accounting - Planning
  135. 135. 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. Customization steps to be followed for creating planning in New GL: - Define Plan periods - Define plan versions - Assign plan version to Fiscal year - Define planning layout, planner profile - Define document types and number ranges for planning Path: Customization -> Financial accounting (New) -> General Ledger accounting (New) -> Planning
  136. 136. Step 1: Define Plan periods
  137. 137. 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.
  138. 138. Step 2: Define Plan versions
  139. 139. 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. Planning can be done in two ways: Manual planning: Need to plan data manually Integrated planning: Integrated transfer of plan data from the controlling data.
  140. 140. Step 3: Assign plan version to Fiscal year and company code
  141. 141. Step 4: Planner profile and layout – standard SAP layout
  142. 142. Step 5: Define Document types and number ranges for planning
  143. 143. Front end – Enter Plan data – Tcode GP12N
  144. 144. Front end – Plan Vs. Actual report Tcode S_PL0_86000029
  145. 145. FI Level Planning – Additional points
  146. 146. Planning in FI in new GL accounting is based on the combination of GL accounts and Profit center. 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.
  147. 147. New General Ledger Accounting Changes in ECC 6.0 version from earlier versions
  148. 148. 1. Customization changes
  149. 149. Additional nodes added in FI customization – an overview: • Profit center and Segments: Customization -> Enterprise structure -> Definition –> Profit center and Segment. • Ledgers: Customization -> Financial accounting (New) -> Financial accounting global settings (New) -> Ledgers. Mainly useful for parallel accounting through parallel ledgers. • Real time integration of CO with FI: Customization -> Financial accounting (New) - > Financial accounting global settings (New) -> Real time integration of controlling with financial accounting. • Extended Document splitting: Customization -> Financial accounting (New) -> General ledger accounting (New) -> Business Transactions -> Document splitting and extended document splitting. • FI level planning: Customization -> Financial accounting (New) -> General ledger accounting (New) -> Planning. This is a replacement for FI-SL level planning • FI level allocations: Financial accounting (New) -> General ledger accounting (New) -> Periodic processing -> Allocation. This is a replacement for FI-SL level allocation.
  150. 150. Front end changes
  151. 151. New transaction codes / replacement of old transaction codes – an overview: • Balance carry forward transaction code for GL is FAGLGVTR in place of F.16. • Foreign currency valuation transaction code is FAGL_FC_VAL in place of F.05. • Regrouping its FAGLF101 in place of F101. • Financial statement version transaction code is S_PL0_86000028 (a new drilldown reporting). • GL wise line item display – FAGLL03 (similar kind of functionality as FBL3N except drilldown option, but ledger wise line item display can be possible) • GL wise balance display – FAGLB03 (similar kind of functionality as FS10N, but ledger wise GL balance display can be possible) • During simulation of a document, we can also find “Simulate in General Ledger” which mainly displays the entire split of related account assignments.
  152. 152. Eliminated closing activities in New GL
  153. 153. Examples of eliminated closing activities in New General ledger – an overview: • 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) • Maintenance and use of the various FI-SL ledgers (=> SAPF180A + Transaction codes 1KEH, 1KEI, 1KEJ, 1KEK and 1KE8).
  154. 154. SAP Note numbers for reference
  155. 155. Topics Note Numbers General Information New GL - General Information 756146 Reconciliation with CO New GL - Reconciliation with CO 908019 Document Splitting Concept New GL - New GL with Document splitting - Legacy data transfer 890237 New GL - Risks involved in subsequent changes of document splitting 891144 New GL - Document Splitting - Zero balance clearing account 961937 New GL - Document Splitting 1085921 Parallel Ledger Concept
  156. 156. New GL - Parallel Accounting 779251
  157. 157. SAP Note numbers for reference
  158. 158. Topics Note Numbers Profit center and Segment Reporting New GL - Number of profit centers in classic and new GL accounting 217338 New GL - Profit center in New GL accounting 826357 New GL - Activating Segmentation scenario 1018065 New GL - Segmentation scenario 1035140 Migration Concept New GL - Migration details 812919 New GL - Migration - Information, Prerequisite and performance 1014364 New GL - Migration - Restrictions and Important information 1039752 New GL - FAQ - New General Ledger Migration 1070629

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