Functional

The New General Ledger Functionality provided by SAP has many improved functionalities in comparison to the Classic General Ledger Accounting. The New GL provides dynamically to the Business requirements to cater to Mandatory Financial Reportings by Legal Authorities, posting in accordance to segments over and over the segment reporting that existed in Classic GL. Let us understand the major Functionalities provided in the new version SAP ECC 6.0 EHP4 (Enhancement Package 4.0). For general understanding we can say that the New GL is an enhancement to the Classic GL.

Major Projects have taken place in the Companies using the Classic GL as there have been Standard table enhancements, report enhancements, Process changes, Company’s Organizational Structure change. It is an Upgrade in the Classic GL Accounting. There are various advantages to the Classic GL Accounting, which we will see below.

As per SAP, the Advantages of FI-GL (New) have four Pillars: 

• Extended Data Structure:

Functional Area field is now stored in the General Ledger too. This means you no longer have to activate Cost of Sales Ledger to create a Profit & Loss Statement in accordance with Cost of Sales Accounting.

The Profit Center field (and the Partner Profit Center field) is also maintained in the General ledger.

The segment field Is a new entity (Characteristic/category) which can be used for Segment reporting.

Table structure can be extended flexibly.

Standard reports are available.

• Document Splitting:

Document Splitting is an essential functionality for segment reporting in SAP ERP by the New GL as it helps in providing a balanced Financial Statement for Segments on real time basis. Let's take a quick example of a Journal Entry Posting where a real time document splitting takes place.

Post Vendor Invoice for 1000 Rs (with 10% Tax). Below is the document entered in the System by the end-User.

SAP currently derives the Segment from the field Profit center. The cost object is user-specific. We have taken Cost center but Internal Order, Project, and similar objects can also be used for posting.

The Above document is split on in real time by SAP in accordance to the Object.

Please see how the document will show in the NEW GENERAL LEDGER view in the document overview transaction code FB03.

The TAB has been in the document to show the user the automatic split by the system.

The above entry is automatically balanced at the SEGMENT level. For this the functionality called AUTOMATIC SPLIT has to be activated at the segment level.

• Real Time Integration of CO-FI

The real time integration criteria can be defined for company code, business area, profit center, segment, fund and receivable.

The CO FI integration documents can be analyzed with a trace that is its source.

The real time functionality doesn’t need a manual reconciliation posting for each cost element using transaction KALC.

• Parallel Accounting

There is exactly one leading ledger in each client and the leading ledger reflect the accounting principle on which group financial statements are prepared.

Other ledgers can now also exist in New GL, which can be called the non leading ledgers.

Example of Parallel Accounting could be:

Indian Accounting Standard – Leading Ledger

IFRS – Non-leading ledger.

US GAAP – Non-leading ledger.

Rahi Shah

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