New General Ledger (or new G/L) in the SAP ERP system offers a powerful feature known as document splitting. With document splitting, accounting line items are split according to specific characteristics This way, you can create financial statements for entities such as Segments and meet legal requirements. This document also explains the basics steps of Passive splitting, Active splitting — Rule-based splitting and Splitting using zero balancing with examples. At the end you will see a step by step Document Splitting examples to familiarize with process.
New General Ledger
New Tables in New General Ledger
Three new tables in the new general ledger handle totals, store general-ledger and specific line items, and calculate valuations for year-end closings in parallel ledgers
Two new tables (FAGLFLEXA & FAGLFLEXP) store the ledger-specific line items (Actual & Planned) & contain additional information for use in the entry view. The tables help in updating different characteristics and document splitting information, different period shifts, and different currencies in specific ledgers for individual documents. Helps in preparing reports for specific dimensions at item level.
Migration from Classic General Ledger to New General Ledger
New Functionality in the New General Ledger
- Segment Reporting
Segment reporting is a legal requirement in many countries. US GAAP, and IFRS require a segment to be reported if the total external revenue of the segment exceed 10% of the total revenue. They also require to report income statement and balance sheet to be reported by segment. The big change in Segment reporting is that there is now a separate filed in the Profit Center master record.
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).