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4 17 1_4 17 2_New General Ledger_Introduction & Ledger Definition.doc 1 of 14
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1. Topics Covered...................................................................................................3
2. Ledger Definition ................................................................................................4
2.1.1. Definition ............................................................................................................... 4
2.1.2. Configuration consideration / Usage Considerations .............................................. 4
2.1.3. Demonstration ....................................................................................................... 8
3. Segment..............................................................................................................11
3.1.1. Definition ..............................................................................................................11
3.1.2. Business Purpose / Use........................................................................................11
3.1.3. Configuration consideration / Usage considerations..............................................11
3.1.4. Demonstration ......................................................................................................11
3.1.5. Self Assessment Test ...........................................................................................13
3.1.6. Tasks ...................................................................................................................13
3.1.7. Solutions ..............................................................................................................13

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This training document covers the concept of Ledger Definition in the New Ledger Concept in
SAP R/3.
1. Topics Covered
After the completion of this training, the participants would have the understanding Ledger
Definition and also an understanding use of Ledger in New General Accounting.
The following units would be explained in this document
Ledger Definition
Ø Activation of New General Ledger
Ø Define Ledger for New Ledger
Ø Totals Table FAGLFLEXT
Ø Assignment of Scenarios
Ø Entry View and General Ledger View for Financial documents
Ø Segment

2. Ledger Definition
2.1.1. Definition
There are two types of Ledgers that is Leading Ledger and Non-Leading Ledgers.
The Leading ledger is based on the same accounting principle of that of the consolidated financial
statement. It is integrated with all subsidiary ledgers and is updated in all Company codes. It
must be necessary to designate one ledger as Leading Ledger.
Non leading ledgers are used when legal entities are required to prepare and present financial
statements as per an additional GAAP, for ex. An Indian legal entity which is a subsidiary of a US
based multi national corporation may be required to maintain its books of accounts as per US
GAAP for its legal consolidation with its US holding company and also maintain books of
accounts as per Indian GAAP for Income tax and Corporate law purposes in India.
At times the fiscal year followed by legal entities could be different from legal reporting fiscal year
for example a legal entity in India having fiscal year as January to December will have to prepare
financial statements for April to March fiscal for compliance with Indian tax audit requirements
2.1.2. Configuration consideration / Usage Considerations
Activation of New General Ledger
After Activation of New Ledger Accounting, the following New Ledger functionalities made
available:
v The Previous Financial Accounting screen is replaced by Financial Accounting (NEW)
Menu.
v This Process activates the tables of new Ledger Accounting so that the postings are
written to them. The New Ledger table name is FAGLFLEXT.
v The Financial Accounting Basic Settings (NEW) and General Ledger (NEW) allow
making settings for new General Ledger Accounting.
v In case, Classical ledger paths are not required, run the program
RFAGL_SWAP_IMG_OLD, it will hide classical accountings paths and no longer be
available.
v Activation of New General Ledger not only expands the new Customizing and Application
paths but also some of the traditional ledger functionalities may no longer be available.
Define Ledger for New General Ledger
v SAP provides the Leading Ledger OL. The Ledgers are based on Totals table. SAP
recommends using the delivered standard totals table FAGLFLEXT.
v In each Company code, the Leading Ledger automatically derives the settings that apply
to that Company code: the Currencies, the Fiscal Period Variant and the Posting Period
Variant.
v For non-leading ledgers, we can assign different control parameters. Definition and
explanation for non-leading ledgers please refer in the next lesson.

Totals Table FAGLFLEXT
The totals table of New General Ledger Accounting is FAGLTEXT. It contains additional fields
that are earlier available in totals tables of classic components such as:
v Classic FI: GLTO
v Cost-of-sales ledgers: GLFUNCT
v Reconciliation ledger: COFIT
v EC-PCA: GLPCT
Some important fields of New Ledger Accounting totals table FAGLTEXT are:
Field Name Description
RYEAR
RACCT
COST ELEM
BUKRS
RCNTR
PRCTR
RFAREA
RBUSA
SEGMENT
Fiscal Year
Account Number
Cost Element
Company Code
Cost Center
Profit Center
Functional Area
Business Area
Segment for Segment Report
It is possible to extend some additional fields both predefined SAP fields as wells totally new
fields by way of editing Account Assignment block and should be done with caution.
Assignment of Scenarios
Scenario means the fields are updated in the ledgers for General Ledger view at the time of
posting.
The fields which are updated by scenarios would be used as business model e.g. segment
reporting.
Scenarios delivered by SAP
v Cost Center update (FIN_CCA)
• Update of the sender cost center and receiver cost center fields
v Preparation for consolidation (FIN_CONS)
• Update of consolidation transaction type and trading partner fields
v Business area (FIN_GSBER)
• Update of the sender business area and receiver business area fields
v Profit center update (FIN_PCA)
• Update of profit center and partner PC fields
v Segmentation (FIN_SEGM)
• Update of the segment, partner segment and PC fields
v Cost of sales accounting (FIN_UKV)
• Update of the sender functional area and receiver functional area fields
v It is not possible to define scenarios other than delivered scenarios by SAP.
v A ledger can be assigned one or more rather all six scenarios to one ledger.
v Assignment of scenarios again depends on the business requirement.

Entry View and General Ledger View for Financial documents
When New General Accounting is active, accounting document has two views Entry view and
General Ledger View.
Entry View: This view shows how a document appears in sub-ledgers Accounts payable,
Accounts receivable Asset Accounting.
General Ledger View: This view shows how a document appears in the General Ledger.
Views of FI Document when there is no assignment of Scenarios to a Ledger:
Entry View:
An entry view displays an accounting entry as “entered” along with automatically generated tax
line items. Segment is not at the time of transaction it is derived from the profit center master.
General Ledger View:
There is no scenarios assigned to the Leading or Non- leading ledgers and hence no entities are
inherited.

Views of FI Document when scenarios are assigned to the ledger:
Entry View:
General Ledger View:
Now, there are four entities are inherited because four scenarios are assigned to the Leading
Ledger 0L.

2.1.3. Demonstration
Activation of New General Ledger
Menu Path IMGàFinancial AccountingàFinancial Accounting Global
Settingsà Activate New Ledger Accounting
Transaction Code FAGL_Activation
Define Ledger for New General Ledger
Menu Path IMGàFinancial Accounting (NEW) à Financial Accounting
Basic Settings (NEW) àLedger à Ledger à Define Ledgers for
General Ledger
Transaction Code SPRO

Currencies for Leading Ledger
Menu Path IMGàFinancial Accounting (NEW) àFinancial Accounting Basic
Settings (NEW) à Ledger à Define Currencies for Leading
Ledgers
Assign Fiscal Period Variant and Posting Period Variant
Settings (NEW) à Ledgers à Fiscal Year and Posting Periods
à Assign Company code to Field Status Variant.

Assignment of Scenarios
Menu Path SPROàFinancial Accounting (NEW) à Financial Accounting
Global Settings (NEW) à Ledgers à Ledger Assign Scenarios
and Customer Fields to Ledgers

3. Segment
3.1.1. Definition
Division of a company, for which, financial statements for external reporting can be created.
3.1.2. Business Purpose / Use
Segments can be used to meet the requirements of International Accounting Principles regarding
“Segmental reporting”.
The Segment was additionally provided as in most of the cases, the Business area and the Profit
center would have been used for other business purposes
3.1.3. Configuration consideration / Usage considerations
v A segment can be entered in the master record of a profit center.
v The characteristic Segment is only released in combination with the characteristic Profit
Center. If no segment is specified manually during posting (only possible for transactions
in Financial Accounting), the segment is determined from the master record of the profit
center. This profit center can also be assigned manually or derived.
v The segment can also be derived by using the BAdI – FAGL_DERIVE_SEGMENT
3.1.4. Demonstration
Demo 1: Defining a segment
Menu Path IMG Settings ‒> Enterprise Structure à Definition à Financial
Accounting à Define Segment

Assignment of Segment to Profit Center Master:
Menu Path IMG Settings ‒> Enterprise Structure à Definition à Financial
Accounting à Define Profit Center
Transaction Code KE51

3.1.5. Self Assessment Test
1. Only one Leading Ledger for each Company Code.
a. True
b. False
2. Standard SAP delivered scenarios are seven.
a. True
b. False
3.1.6. Tasks
1. Which fiscal year variant and currencies are assigned to the leading ledger?
2. Create a Segment with ID SG##
3. Note down what is scenario assigned to the Leading Ledger
4. Create a Vendor Invoice with the following parameters
Company Code ABXX
Vendor 1000
Invoice date Current date
Posting date Current date
Amount XXXX
Cost Center AX1000 for first line item
AX1010 for second line item
Simulate and Post the document, display the document in Entry view and General ledger view.
3.1.7. Solutions
Menu Path IMGàFinancial Accounting (New) à Financial Accounting
Global Settings (New) àLedgers à Fiscal Year and Posting
Periods à Assign Company Code to a Fiscal Variant
Your Company Code AB## has fiscal year variant K4
And
Settings (NEW) à Ledger à Define Currencies for Leading
Ledgers

Your Company code AB## has Currency INR
1. Create a Segment with SG## and name it as General
Menu Path Enterprise Structure à Definition à Financial Accounting à
Define Segment
Maintain New Entry.
2. Please don’t change the system configuration and just find out the scenarios have been
assigned to the leading ledger OL by the trainer.
Menu Path IMGà Financial Accounting (New) à Financial Accounting
Global Settings (New) à Ledgers à Ledger à Assign Scenarios
and Customer Fields to Ledgers.
Go to the following IMG path:
Select the ledger OL and double click on Scenarios. The following scenarios will be available:
Cost Center Update
Business Area
Profit Center Update and
Segmentation
3. Create a Vendor invoice as described in the tasks in the following Easy access menu
path:
Menu Path SAP Easy Access Menu à Accounting à Financial Accounting
à Vendors à Document Entry à Invoice
Transaction Code FB60
Simulate and post the Document.
Display the document by choose menu path Document à Display
Entry view and General View

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