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Parallel Accounting in New General Ledger

The new GL functions include “Parallel Accounting”, it’s an SAP feature where you can maintain different sets of books to satisfy all different requirements of Financial Statement users accurately, efficiently and effectively. Standard reports are already available and readily available to use.

How does Parallel Accounting works in SAP (FICO)? Requirement is; a leading ledger is created in the system (0L – ledger = GAAP). Then another ledger should be created and classified as non-leading ledger (1L – ledger = TAX). Read more

Why Use New General Ledger

The following table gives the business requirements at the backend which prompts the finance department of the comapny to go for NEW GL implementation.

S.N Business Requirements New GL Functionality
1 Reporting as per different GAAP Concept of multile ledgers- leading and non leading ledgers
2 Unified Mangement & legal reporting Profit Centre integrated with the New ledger
3 Requirement of segmental reporting(in line with US GAAP) Segment can be defined as an enterprise element
4 Financial statement below company code level Document spilt functionality
5 Reporting as per cost of sales accounting Functional area included

Each one of these functionality is unique and elaborate and has the features ingrained to meet the different requirements emerging for the external reporting purpose.

Important SAP Procedures for New Fiscal Year

Take a look at these basic procedures for new fiscal year in a SAP system. Familiarity of these procedures is more advantageous. These procedures should be done inorder to post transactions in the new fiscal year; thus, avoiding any error during transaction entry.

1. Open and Close Posting Period – In this procedure, you close and open period/fiscal year. There are two (2) intervals available, from period 1 to period 2. For each interval, set a lower limit, an upper period limit, and the fiscal year. Read more

Fundamental Flaw of New General Ledger

According to SAP, there are 2 ways to realize parallel accounting principles. One method is account approach, and another method is ledger approach by using New G/L.

If you use this ledger approach, you will have error message when you post cost to the secondary ledger. You can not post CO related costs without posting to Leading Ledger. This is a fundamental flaw that New G/L has. Read more

New General Ledger User Manual

Contents:

Enter Gl Account Document For Ledger Group
Enter General Posting For Ledger Group
Enter General Posting For Ledger Group
Display /Change Items (New)
Foreign Currency Valuation Of Open Items
Balance Carry Forward (New) Read more

Essentials of New General Ledger

This presentation is about the functionalities and configuration of the New General Ledger in SAP Finance (FI) module

Contents:

  • Key considerations for implementing the new SAP G/L
  • New G/L Functionality
  • Functionality Changes as a Result of the New G/L
  • Migration to the New G/L

Download – Essentials of New General Ledger

Activate New General Ledger

For initial installations (new SAP customers), the new G/L is active by default in mySAP ERP. SAP advises that customers with new installations use the new G/L. These customers can still use the classic G/L if they prefer, but this may cause difficulties for future G/L migration projects. If existing customers want to use the new G/L, they have to activate it. Read more