What Every SAP Customer Now Needs to Know About the New SAP General Ledger (G/L) Stuart Paradies Odysse dys seyy Busin B usineess Consulti onsu lting ng Service rvi cess © 2008 Wellesley Information Information Services. All rights rights reserved.
What Every SAP Customer Now Needs to Know About the New SAP General Ledger (G/L) Stuart Paradies Odysse dys seyy Busin B usineess Consulti onsu lting ng Service rvi cess © 2008 Wellesley Information Information Services. All rights rights reserved.
In This Sess Sessio ionn … • •
Key considera consi deratio tions ns for f or impl i mpleementing the new SAP SAP G/ G/L new G/ G/L functi fun ctionality onality How do additional additi onal ledgers ledgers support suppo rt multi mu ltiple ple reporting reporti ng needs? needs? How can you use segments segments to achieve International International Financial Reportin eport ingg Standard Standardss (IFR (IFRS) S) requirements? requi rements? What What has replaced the reconci recon cililiaation ti on ledger l edger in CO? CO? What hat is document splitting split ting and how do you use it to gene genera rate te fully ful ly ba b alanced lanced financial fi nancial statements? statements? Funct unction ionaalit lityy change c hangess as a result of o f the t he new new G/L G/L What has changed in Pro Profifitt Cent Center er Account Acco untin ingg (PCA) (PCA)?? How is i s cost cos t of sales sales accounting account ing managed? managed? What enhance enhancements ments ha h ave occurred occur red in parallel parallel accountin accoun ting? g? How are allo allocations cations performe perform ed in i n the t he new new G/L? G/L? What can I expect from fr om planning p lanning and re r eporting port ing in the t he new new G/L? G/L?
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In This Session … (cont.) •
Migration to the new G/L What options are available High-level overview of the steps involved in using the migration toolset
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What We’ll Cover … • •
Key considerations for implementation new G/L functionality Ledgers Segments Real-time integration Document splitting Changes to existing functionality Profit centers and cost of sales accounting Parallel accounting Allocations Planning and reporting Migration to the new G/L Wrap-up
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Reasons •
Reasons for implementing mySAP ERP 2004/SAP ERP 6.0 Release support expiration New installation Full financial statements required below company code level Global/headquarter upgrade initiatives
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Scope •
Scope of financial implementation Are multiple reporting principles required, such as US Generally Accepted Accounting Principles (GAAP) and IFRS? Is segmental reporting required to support Securities and Exchange Commission (SEC) filings or IFRS? Are multiple parallel currencies required to support internal/ external reporting needs? Are fully balanced financial statements required at the business-unit level within a company code? Is transfer pricing or the use of statistical key figures for profit centers required?
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ECC 5.0 vs. ECC 6.0/SAP ERP 6.0 •
Functionality not available in the new G/L with mySAP ERP 2004 – ERP Central Component (ECC) 5.0: Transfer prices Statistical key figures Euro translation Audit Information System (AIS) Archiving Data retention tool There are limitations in the migration tools delivered as part of ECC 5.0 (Support Package 10) These are available in SAP ERP 6.0 – ECC 6.0
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Skills Required to Transition to New G/L • •
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Transition performed as part of a project Transition impacts all business processes from a reporting perspective, so representation from all functional areas of the business is recommended Specific business financial expertise is required for the following: To identify business reporting needs/organizational structure To process and analyze key G/L processes To process and analyze Accounts Payable and Accounts Receivable processes To validate migration of financial results for which migration tools are used
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Skills Required to Transition to New G/L (cont.) •
Specific consulting expertise may be required for the following: Advice on best practices for implementing the new G/L Configure/assist with configuring the new G/L Perform/assist with performing any new G/L migration SAP will be required to participate with any migration (discussed in later topic)
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Project Phases and Timelines •
Project planning required to identify design approach and implementation strategy What is the scope of the implementation? Is this a new install or will it be a migration of the existing database to the new G/L? Blueprinting facilitates the designing of the new processes and functionality How will the scope of the implementation impact current processes – change management assessment? Final blueprint of what needs to be implemented, including any technical development work to support the initiative
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Project Phases and Timelines (cont.) •
Realization phase of the project is where you can expect to spend most of the time Implementing the blueprint design Testing the processes being implemented Preparation for go-live Execute training plans and address other change management requirements Final system readiness for launch Go-live and support phase of the project continues until the system has stabilized Actual go-live “ weekend” Ongoing system support to ensure stability from go-live is achieved (typically extends to first financial month-end or even quarter-end)
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Project Phases and Timelines (cont.) •
Approximate weighting of project time
10%
Project Preparation
30%
40%
15%
Business Blueprint
Realization
Preparation for Go-Live
5%
Go-Live & Support
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Technical Considerations •
New tables and their interaction with existing FI tables The red-colored disks represent new tables
Header Table
BKPF
FAGLFLEXT
Totals Table
BKPF_ADD Entry view for additional ledgers
Line Item Table
BSEG
FAGLFLEXA
Line Items Table
FAGLFLEXP
Planning Table
BSEG_ADD Entry view for additional ledgers
Planning Layouts
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What We’ll Cover … • •
Key considerations for implementation new G/L functionality Ledgers Segments Real-time integration Document splitting Changes to existing functionality Profit centers and cost of sales accounting Parallel accounting Allocations Planning and reporting Migration to the new G/L Wrap-up
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Ledgers – What Are They? •
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Ledgers are a specific view of a database table for reporting purposes Ledgers are now an integral part of the new G/L You can use any number of ledgers simultaneously with a single user interface Specific document number ranges can be defined for additional ledgers to support data entry Postings per specific ledger supported
US GAAP ledger
IFRS ledger
Local GAAP ledger
Fiscal variant ledger
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Ledgers – What Did You Have Before? •
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Special Purpose Ledger (FI-SL) was typically used in previous versions of SAP for additional ledger reporting Separate document numbers would record postings from FI/CO into FI-SL Data entry in FI-SL required a different front-end entry screen compared to the classic ledger 0 Foreign currency translations performed in FI-SL, but require a separate monthly activity compared to ledger 0
Ledger 0 Local
FI-SL FI-SL ledger 2 ledger 1 IAS US GAAP
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Predefined Scenarios in the New G/L •
Delivered, predefined scenarios specify which posting data is transferred from different applications Cost center update Preparations for consolidation Business area Profit center update Segmentation Cost of sales accounting Custom scenarios are not possible Customer fields can also be defined (e.g., region/order) Scenarios, customer fields (if any), and versions are defined for all ledgers
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Ledger Fields •
Fields automatically filled through the various scenarios Cost center update Cost center Sender cost center Preparations for consolidation Trading partner Transaction type Business area Business area Trading partner business area
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Ledger Fields (cont.) •
Fields automatically filled through the various scenarios (cont.) Profit center update Profit center Partner profit center Segmentation Profit center Segment Partner segment Cost of sales accounting Functional area Partner functional area
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Leadin Leadingg Ledgers Ledgers • •
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One ledger ledger is defined as as the t he “ lea leading ding ledge ledger” r” Leaading le Le ledge dgerr typically re r eflects the accounti accounting ng princi p rinciple ple for consolidate consolida tedd reporting reporting – the “ ma main in set set of books” All comp compaany codes are assig assigned ned to the leadin leadingg le l edger auto utomatically matically and cannot be deacti deactivate vatedd Asset accounting account ing book depre depreciation ciation area (01) must post p ost to the t he leadi lea ding ng ledger l edger
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Leadin Leadingg Le L edgers (cont.) con t.) •
You can defin definee up to two t wo additional additi onal local curre curr enci nciees for the t he leadin lea dingg le l edger ove ov er and above loca loc al curr c urreency 1: Local Local currency cu rrency 1 Currency type t ype 10 10 (comp (company any code) cod e) cannot be changed Local curre curr ency 2 or 3 urreency typ typee 30 30 (gro (group) up) Curr urreency typ typee 40 40 (hard (hard currency) cu rrency) Curr t ype 50 50 (index-ba (index-based sed currency cur rency)) Currency type urreency typ typee 60 60 (glob (globaal company co mpany currency) cu rrency) Curr
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Non-Le on -Leaading di ng Le L edge dg ers • • •
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You can use non-lea non-leadin dingg ledgers to suppo s upport rt para parallel llel accounting account ing Non-le on-leaadin dingg le l edgers are acti activate vatedd by b y company c ompany code Each non-lea non-leadin dingg le l edger is assi ssigned gned currency cur rency type t ype 10 10, but ma m ay also be b e assi ssigned gned up to two tw o addi additio tional nal local currency types ty pes Non-le on-leaadin dingg le l edgers are assi assigned gned to a fisca fisc al yea yearr variant by users, which whi ch may be diffe diff erent from fr om the t he lea leading ledge ledger r Separate Se parate doc docum ument ent type typ es and number num ber ranges can be defin defineed for fo r non-leadin non-lea dingg ledgers ledgers by users, to ensur ensuree cont continui inuity ty in i n ledger ledger numbering Z1 Nonleading ledger 22
Non-Leading Ledgers (cont.)
Fiscal year variant Z4 (5-4-4)
Fiscal year variant K4 (Calendar)
0L
Z1
Leading ledger
Nonleading ledger
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Ledger Group •
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Combination of ledgers for the purposes of applying the functions of G/L accounting (e.g., posting entries) Automatically defined for each ledger You may create a ledger group and assign ledgers to the group if collective processing is required If a ledger is not assigned to a group, processing is performed for all ledgers automatically Postings to additional ledgers (non-leading) are performed with reference to the ledger group
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Representative Ledger • •
•
Must be defined for each ledger group The system uses the representative ledger to determine the posting period during posting Posting is then made to the assigned ledgers of the ledger group using the appropriate fiscal year variant for each individual ledger
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Rollup Ledger • • •
Similar functionality to that found in FI-SL Used to consolidate data from multiple ledgers Defined in configuration Associated to a summary table (FAGLFLEXT) Determine whether transaction currency should be used Could result in duplicate values Determine whether debit and credit amounts from the totals table should be stored separately or aggregated Identify whether quantities should be stored (activities) Results in increased data, thereby decreasing performance Define various versions for rollup, if required Assign company codes to rollup ledgers
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Ledgers – Key Configuration Points • • • •
• • • •
Define ledgers Define non-leading ledgers Assign additional currencies to leading ledger Assign non-leading ledgers to company codes and fiscal year variant Assign scenarios in G/L accounting to ledgers Define Ledger Groups and assign Representative Ledger Define document types for postings to non-leading ledgers Define and assign number ranges to document types for non-leading ledgers
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Ledger Configuration
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What We’ll Cover … • •
Key considerations for implementation new G/L functionality Ledgers Segments Real-time integration Document splitting Changes to existing functionality Profit centers and cost of sales accounting Parallel accounting Allocations Planning and reporting Migration to the new G/L Wrap-up
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Segments •
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Organizational unit that facilitates the production of financial statements for divisions within company codes US GAAP requires full balance sheet (except shareholders’ equity) at the segment level for segmental reporting Segment defined as sub-area of a company that generates revenues and expenses IAS and IFRS require segmental reporting for two key areas: Business segment Could be represented by segments in SAP Geographic segment Could be represented by customer field (region) in G/L accounting
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Prerequi rerequisi sites tes for fo r Segment Use • •
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Segments are defin defineed in i n confi co nfigur guraatio tionn Prof rofitit ce c enter characterist characteristic ic must be acti active ve in SAP to allow auto utomatic matic determination determination from fr om profit prof it centers centers Segments ca c an also be assi assigned gned through thr ough the use of Business Busi ness Add-In (BAdI) FAGL_DERIVE_SEGMENT, where profit centers are not active activ e Manual entr entryy of se s egments during dur ing docum d ocumeent entry is i s also supported Docu ocument ment splittin split tingg with zero zero balanci balancing ng should shou ld be acti ctive ve to support supp ort fin finaanci nciaal state s tatements ments at the segment segment le l evel (dis (discuss cusseed later)
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Segm Segmeents nt s and Pro Profifitt Cent Centeers •
In order or der to achieve a segme segment nt derivation automa autom atio tion, n, it is is recommendedd that recommende t hat profit prof it cente centers rs be acti activate vatedd in i n the t he new new G/L G/L and segments segme nts be b e assi ssigned gned to profi pr ofitt centers
Cost objects ob jects
Cost centers
WBS elements
Internal orders
Other orders
Prof rofitit center
Segment
Financial postings
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Segments in Configuration
Segments defined in configuration
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Segments – Key Configuration Points • • • • • •
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Define segments Derive segments using BAdI/Rules Activate “ Segmentation” scenario for all relevant ledgers Activate “ Profit Center” scenario for all relevant ledgers Assign segments to profit center master records Maintain additional account assignments in the field status groups for accounts Maintain additional account assignments in the field status for posting keys
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What We’ll Cover … • •
Key considerations for implementation new G/L functionality Ledgers Segments Real-time integration Document splitting Changes to existing functionality Profit centers and cost of sales accounting Parallel accounting Allocations Planning and reporting Migration to the new G/L Wrap-up
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Real-Time Integration – What Is This? •
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Real-time integration of CO with FI replaces the reconciliation ledger All postings made in CO that result in changes to the values of predefined scenarios in the new G/L are reflected in FI in real time (typically through allocations) Changes to the following scenarios are affected: Cross-company code Cross-business area Cross-functional area Cross-profit center Cross-segment Cross-fund
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Real-Time Integration •
A variant is defined for real-time update in configuration and assigned to company codes Document type is defined for updates in FI Select which criteria cause real-time updates in FI You can select Business Add-Ins (BAdIs), rules, or all CO documents (not recommended) for update criteria to FI Real-time update trace can also be set, but not recommended – use as an expert mode only By selecting the rules option, you can define the circumstances under which documents are transferred from CO to FI (e.g., only certain business transactions)
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Real-Time Integration (cont.)
Real-time variant
Document Type used for real-time update
Scenarios under which document lines are selected for real-time updates from CO to FI
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Real-Time Integration – Key Configuration Points • •
Define variants for real-time integration Assign variants to company codes Do not assign unless new G/L is active Define rules for selecting CO line items Define inter-company clearing accounts Supports cross-company code allocations in CO Define account determination Define G/L account (P&L) to be used for CO postings Create an extended account determination using a substitution rule (if required) Transfer CO documents retrospectively Useful if real-time integration implemented after new G/L is activated
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Your Turn!
Questions?
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What We’ll Cover … • •
Key considerations for implementation new G/L functionality Ledgers Segments Real-time integration Document splitting Changes to existing functionality Profit centers and cost of sales accounting Parallel accounting Allocations Planning and reporting Migration to the new G/L Wrap-up
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Document Splitting •
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Purpose is to create fully balanced financial statements below the company code level and support IFRS needs Document splitting allows you to display documents using a differentiated representation Line items are split according to selected dimensions Profit centers Segments Functional areas Business areas Document splitting is defined in configuration and is based on a set of rules SAP delivers predefined rules, or custom rules you can maintain Document splitting is activated by company code
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Document Splitting Characteristics •
Certain characteristics of the new G/L are relevant for splitting Each characteristic defined for splitting is assigned the following: Mandatory Field Selected field must be filled with a value after splitting Zero balance Characteristic will be zero-balanced in document Partner field Partner field for characteristic
Available characteristics for splitting
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Defining Document Splitting •
Item categories SAP predelivers item categories Identifies how line items are to be treated for splitting and derived from account types (i.e., asset, customer)
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Defining Document Splitting (cont.) •
Business Transactions (BT) SAP predelivers business transactions Determines which line items may appear in a transaction and which can be modified
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Defining Document Splitting (cont.) •
Business Transaction Variant (BTV) Business transactions are assigned to a transaction variant Special versions of business transactions are possible See example in which BTV 0001 and BT 0300 require vendor
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Defining Document Splitting (cont.) •
G/L accounts Each G/L account must be assigned to an item category This assignment determines how the account is to be interpreted during splitting
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Defining Document Splitting (cont.) •
Document types Each document type used must be assigned to a business transaction Determines what type of transaction and, therefore, which item categories are allowable with this document type Example: “ DR” doc type is assigned to BT 0200
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Document Splitting Methods • •
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Rules are maintained within a splitting method Combination of the business transactions and item categories forms a splitting method Splitting method 0000000012 is the standard delivered and is recommended to customers You can also maintain customer-defined methods
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Document Splitting Rules •
Rules determine which item categories will be split and what base will be used to determine splitting Splitting method (e.g., 0000000012) Business transaction (e.g., 0200 – customer invoice) Item categories (e.g., 02000 – customer) Base item categories (e.g., 30000 – revenue)
Customer item category to be split based on either of these items 50
Working Example – Journal Entry •
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Four-line journal entry using segments as the splitting characteristic The following master data is relevant: Cost Center 1000 tied to Profit Center P1000 Cost Center 2000 tied to Profit Center P2000 Profit Center P1000 tied to Segment S100 Profit Center P2000 tied to Segment S200 Profit Center P3000 tied to Segment S300 The following entry is required:
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DR Supplies DR Supplies DR COS CR Accrual
510000 510000 400000 280000
Ctr 1000 Ctr 2000 Prctr P3000
$1,000 $2,000 $3,000 $6,000 51
Journal Entry: Data Entry View Display Document: Data Entry View Document Number
1000000000
Company Code
DEMO
Fiscal Year
2008
Document Date
31/12/2008
Posting Date
31/12/2008
Period
12
Reference
Doc Splitting
Cross-CC
Currency
EUR
Posting Account Key (PK)
Description Amount
Cost Center
Profit Center
Segment
40
510000
Supplies
$1,000
1000
P1000
S100
40
510000
Supplies
$2,000
2000
P2000
S200
40
400000
Cost of sales
$3,000
P3000
S300
50
280000
Accrual
$6,000
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Journal Entry: G/L View Display Document: General Ledger View PK Account
Description
Amount
Cost Center
Profit Center
Segment
40
510000
Supplies
$1,000
1000
P1000
S100
40
510000
Supplies
$2,000
2000
P2000
S200
40
400000
Cost of sales
$3,000
P3000
S300
50
280000
Accrual
$1,000
S100
50
280000
Accrual
$2,000
S200
50
280000
Accrual
$3,000
S300
Note how account 280000 for $6,000 is assigned to each of the segments based on the offsetting entries 53
Document Splitting Characteristics – Other Areas •
Controlling Define additional characteristics to which document splitting is applied that may not be relevant for G/L accounting Applies to components that use documents transferred from FI CO account assignments are only transferred when the account has also been set up as a cost element Line items are divided up during the following G/L processes: Discounts on clearing of vendor/customer line items Rate differences on foreign currency valuations, etc.
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Document Splitting Characteristics – Other Areas (cont.) •
Post-capitalization of cash discounts to assets Cash discount applied in an asset-relevant invoice can be applied to the asset If selected, cash discounts are not posted against the cash discount account, but, instead, directly to the asset
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Zero Balancing •
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Zero balancing facilitates the creation of balanced financial statements System checks whether selected characteristic is zero-balanced after splitting If not, system creates an automatic balancing entry using a predefined G/L clearing account Zero balancing is assigned to item category 01001 and uses account determination key 000 – defaults Posting keys are defined for zero-balancing purposes You can define multiple zero-balancing accounts for the same key when different charts of accounts are used
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Defining Zero Balancing •
Assign splitting characteristics to zero balancing
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Assign G/L account for zero balancing
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Document Splitting Constants •
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Each characteristic assigned to zero balancing requires a constant Constants are defined within a default constant variant Fields are assigned to the constant variant, together with a default value Example SEGMENT – 9999 Where profit centers are defined for zero balancing, a default profit center is assigned Note: It is recommended that you use the same profit center as the PCA dummy profit center, where both the new G/L and PCA are used in parallel
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Defining Constants
Select “ Assignment of Profit Center” to enter a default profit center
Select “ Assignment of Values” to enter a default segment 59
Document Splitting – Key Configuration Points • • • • • • • • • • •
Assign G/L accounts to item categories Assign document types to business transactions Create G/L clearing account in chart of accounts Define zero-balance G/L account Define splitting characteristics for G/L Define splitting characteristics for CO Define post-capitalization for cash discounts to assets Define constants for non-assigned processes Change splitting rules as needed Activate document splitting Deactivate company codes not relevant for document splitting
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Document Splitting
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What We’ll Cover … • •
Key considerations for implementation new G/L functionality Ledgers Segments Real-time integration Document splitting Changes to existing functionality Profit centers and cost of sales accounting Parallel accounting Allocations Planning and reporting Migration to the new G/L Wrap-up
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Profit Centers •
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Profit centers are now defined as a characteristic of the new G/L and are represented as a scenario To use segments, profit centers must be active in the new G/L Profit center master data supported in the new G/L includes: Profit centers Standard hierarchy Dummy profit center Alternative profit center hierarchies (groups) PCA in CO is still available, but integration back to FI is not supported SAP recommends migration toward the new G/L for profit centers, as tables GLPCT and GLPCA will no longer be developed Long-term parallel use of PCA is not recommended
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Changes to Classic Profit Center Accounting •
Adjustment entries with document splitting active F.5D balance sheet adjustment no longer available F.50 P&L adjustment no longer available 1KEK transfer receivables and payables no longer available Additional balance sheet and P&L assignments 3KEH and 3KEI no longer available in SAP ERP 6.0 3KEI no longer available in mySAP ERP 2004 Automatic derivation of profit center values should be performed in FI using substitution rules or BAdIs Dummy profit center in PCA Routine for derivation will no longer run if document splitting is active
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Changes to Classic Profit Center Accounting (cont.) •
Transfer of fixed assets 1KEI no longer available as of V4.7 due to inconsistencies Foreign currency valuation F.05 no longer available for both FI and PCA when new G/L is activated New transaction code supports foreign currency valuations
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See SAP Note 826357 for more details on PCA functionality in the new G/L
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Profit Centers – Key Configuration Points • • •
Profit center scenario active in new G/L Define profit center standard hierarchy Specify time-dependent fields for profit centers Segment field can be made time-dependent Activate Changes Possible to Segment in profit center master record To allow changes to be made to segment field in profit centers Dummy profit center/constant profit center PCA derivation tables are no longer supported Periodic transfer postings are no longer supported
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Cost of Sales Accounting •
Facilitates the matching of revenue in the P&L to related functional costs Manufacturing Sales and Distribution Marketing, etc. Cost of sales accounting is represented in the new G/L as a scenario Functional areas are defined in configuration as part of the new G/L and activation occurs at the company code level
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Cost of Sales Accounting Functional Areas •
Functional areas can be added to the following master data elements as was the case before: G/L accounts Cost elements Cost centers Orders Work Breakdown Structure (WBS) element Networks They must be activated as an additional account assignment object in Asset Accounting (FI-AA)
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Determining Cost of Sales Accounting Functional Areas •
Functional areas are derived as follows: Assigned object during data entry (e.g., cost center) G/L account or cost element master record (overwrites functional area derived from object above) FI substitution rules using event 0006 (overwrites all previously determined functional areas) Functional areas are not determined in these cases: Postings to balance sheet accounts Entry of statistical key figures in CO Reporting on functional areas can now be performed out of the new G/L
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Functional Areas – Key Configuration Points • • • • •
Cost of sales scenario active in new G/L Define functional areas Activate cost of sales accounting Define functional areas per cost center category Maintain functional areas in G/L accounts Mass maintenance option available Maintain functional areas in cost elements Maintain functional areas in cost objects Cost of sales accounting substitution supported through call-up point 0006 in FI
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What We’ll Cover … • •
Key considerations for implementation new G/L functionality Ledgers Segments Real-time integration Document splitting Changes to existing functionality Profit centers and cost of sales accounting Parallel accounting Allocations Planning and reporting Migration to the new G/L Wrap-up
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Parallel Accounting •
SAP supports multiple accounting principles through the employment of various methods Additional accounts Additional ledgers Additional company codes (not discussed here) New in ECC 5.0 and ECC 6.0 is the introduction of Accounting Principles, which works in conjunction with the additional ledgers method to support parallel accounting As was the case in previous releases, additional local currencies support parallel accounting
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Parallel Accounting (cont.) •
Additional accounts Separate set of accounts maintained in the chart of accounts to support specific reporting needs (local vs. group) Could result in a large set of accounts in the chart Where customers have already implemented this approach and choose to implement the ledgers method, some form of migration will be required
Specific accounts
Specific accounts
(US/local)
(HGB)
Common accounts (IFRS/group)
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Parallel Ledgers •
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Data recorded in the general ledger may be recorded in multiple ledgers in parallel Data for consolidated financial statements could be recorded in the leading ledger All other accounting principles could be supported by additional “ non-leading” ledgers Postings to non-leading ledgers driven by the assignment of accounting principles/valuation areas SAP recommends this approach if the “ account-based” approach would result in a large chart of accounts Standard reporting is supported for all ledgers This approach results in an increased amount of data
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Impact of Using Parallel Ledgers •
FI
Reclassification and sorting of receivables and payables New program posts by sort method and valuation area Changes to reconciliation accounts are considered Foreign currency valuation New valuation program posts by valuation area Currency translation New translation program posts by valuation area Accruals Calculations and posting of manual accruals by valuation area simultaneously Provisions and manual postings May be performed simultaneously or to separate accounting principles 75
Impact of Using Parallel Ledgers (cont.) •
FI-AA Manage parallel accounting through the use of depreciation areas Depreciation area 01 posts to all parallel ledgers Leading ledger MUST be assigned to depreciation area 01 New wizard in configuration to assist with the assignment of parallel valuation in FI-AA Posting Acquisition and Production Costs (APC) differences is an option for posting to the G/L periodically (program RAPERB2000), where multiple ledgers are used: Collects data by fiscal year, period, account group, and affiliated company, and creates a collective document Reduces the amount of data being posted to the G/L
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Impact of Using Parallel Ledgers (cont.) •
CO CO allocations creating shifts between segments or functional areas can be transferred to all ledgers Calculations of WIP and results analysis are performed using different valuation methods Define different versions for results analysis based on principles Assign accounting principle to posting rules for the results analysis version All CO-relevant values in the leading ledger are transferred to CO Postings updated exclusively in non-leading ledgers are NOT transferred to CO
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Impact of Using Parallel Ledgers (cont.) •
Materials Management (MM) Differences between current stock value and stock value determined during valuation using balance sheet valuation procedures are issued in a report Manual entries can then be made to parallel ledgers Postings cannot be made automatically due to price changes To create automatic postings to parallel ledgers, you can use alternative valuation run Price fields on the material master can be used to manage alternate valuations Tax-based price field Commercial-based price field
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Features of Using Parallel Ledgers •
Ledger group Ledger-specific postings can be updated to all ledgers in that group simultaneously Ledger selection Where no ledger or group is specified, postings are made to ALL ledgers Manual postings made to individual ledgers by assigning the ledger group in the document header Postings created through automatic valuations, such as foreign currency valuation and translations, contain the account assignment accounting principle Accounting principles are assigned to ledger groups in configuration
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SAP recommends a separate document type for specific ledger updates 79
Accounting Principles • •
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Accounting principles are defined in configuration You can combine different principles for performance reasons (IAS/IFRS) Accounting principles assist in managing various valuations for reporting purposes and results stored in additional ledgers Assigned to a ledger group that has already been defined Valuation methods for foreign currency are defined and assigned to valuation areas Valuation areas, in turn, are assigned to accounting principles Assignment of translation postings are managed by valuation areas to facilitate various accounting principles
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Paralle rallell Accounting Ac counting – Key Key Configuration Configuration Points • • • • • • • • • • •
Defin finee ledgers ledgers for f or para parallel llel accounting account ing Defin finee currencies for f or lea leadin dingg le l edger Defifine De ne and and activate acti vate non-leadi non-leading ng le l edg dgeers Define ledger ledger groups gro ups Defin finee accou ccounti nting ng princi pri nciples ples Assign accounti ccounting ng principles pri nciples to ledger ledger groups grou ps Defin finee document types t ypes for one ledger ledger Defifine De ne valua valu atition on are areas as Assign Assi gn valuation area areass to accounting account ing princ pr incipl iplees Defin finee version versionss for results analysis Assign ve v ersions to accounting principl pr inciplees
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Journa Jour nall Entry with wit h Multiple ult iple Ledgers/P Ledgers/Paarallel rallel Accoun Ac countin tingg
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Your Turn! Turn !
Questions?
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What We’ll Cover … • •
Key considerations for implementation new G/L functionality Ledgers Segments Real-time integration Document splitting Changes to existing functionality Profit centers and cost of sales accounting Parallel accounting Allocations Planning and reporting Migration to the new G/L Wrap-up
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Allocations • •
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Similar to FI-SL, allocations can now be carried out in the new G/L G/L characteristics can be allocated through assessments and distributions SAP recommends performing overhead allocations in CO Actual and plan data can be allocated Allocations are managed within a cycle Statistical key figures (e.g., number of employees) can be used as tracing factors for periodic allocations Only available in SAP ERP 6.0 ECC 6.0 Sender values determined on the following basis: Posted amounts Fixed amounts Fixed rates
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Allocations (cont.) •
Receiver values determined on the following basis: Variable portions Fixed amounts Fixed percentages Fixed portions SAP recommends splitting allocations in various cycles Performance – run time increases the segments involved Reasons specific to allocation – easily rerun cycles
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Allocations – Key Configuration Points •
Define field usage for: Distributions Assessments Define account determination for allocation Zero-balance clearing account Check settings for allocation Tools available to check configuration for allocations Define statistical key figure master data Only available in SAP ERP 6.0 ECC 6.0
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Allocations – Menu Path
Allocations for new G/L under the General Ledger section
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What We’ll Cover … • •
Key considerations for implementation new G/L functionality Ledgers Segments Real-time integration Document splitting Changes to existing functionality Profit centers and cost of sales accounting Parallel accounting Allocations Planning and reporting Migration to the new G/L Wrap-up
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Planning • •
Similar to planning in FI-SL, this is now possible in the new G/L Two options for entering plan data: Total amounts that are distributed to planning periods Period amounts Specific periods can be defined to allow planning The FI periods for actual postings do not have to be open to facilitate planning updates Planning versions facilitate various “ what-if” scenarios You can maintain distribution keys to distribute plan amounts Planning layouts are created based on summary table FAGLFLEXT, and can be integrated with Microsoft Excel
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Planning (cont.) •
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Characteristics, key figures, and entry screen view are identified within the layout A planner profile is defined and assigned to the layout
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Planning and Other Components •
You can copy plan data to the G/L from: Cost Center Accounting (CO-CCA) Profitability Analysis (CO-PA) Online data transfer should be performed only when no other postings are being made In other cases, only transfer data from closed periods To transfer plan data, the following prerequisites exist: CO: CO and G/L plan version must share the same name CO plan version must have “ plan integration” indicator set G/L: Plan version for ledger must be unblocked Activate “ line items for planning” if line items are to be transferred Assign company codes to non-leading ledgers if used
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Planning – Key Configuration Points • •
Define plan periods Define plan versions Same as CO-CCA if online transfer is required Assign plan version to fiscal year and activate Activate line items for planning (if required) Define user-defined distribution keys (if required) Define planning layout Define and assign planner profile Define document types for planning Define number range for planning document types
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Reporting •
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G/L reports available that introduce new characteristics based on active scenarios (such as segment, profit center) New transaction codes available to support reporting of G/L balances, line items, and financial statements Custom reports created using Report Painter Drill-down capability Report outputs allow for: Classic drill-down reporting Object lists (more than one lead column) Graphical report output New menu path exists for running reports for the new G/L: Accounting Financial Accounting General Ledger Information System General Ledger Reports (New)
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Key Figure Reports •
With constants Allow evaluations on non-financial statement data, such as number of employees or square feet You can restrict constants to any of the following, or maintain different values for each different: Company code Business area Fiscal year Period Without constants Calculates financial statement items without constants, such as debt/equity ratio Derived from the financial statement version debt and equity sections
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G/L Account Balance Reports • •
Previous FS10N is still available for classic view New FAGLB03 reports on any of the new scenarios
Dynamic selections allow additional selection parameters
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Filter by range of segments 96
G/L Account Balance Reports (cont.)
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Filter options available for additional segmentation
Balances displayed by company code and any additional characteristics selected
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G/L Line Item Reports • •
Previous FBL3N is still available for classic view New FAGLL03 reports on any G/L scenario
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new G/L line item display
Additional selections available for G/L line items
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G/L Line Item Reports (cont.)
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new G/L line item display with characteristics as columns
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G/L Account Balance and Financial Statements •
G/L account balances (trial balance) Previous S_ALR_87012277 produces the classic view New S_PL0_86000030 new account balances report
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G/L Account Balance
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Drilldown by different characteristics is possible through the navigation option
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G/L Account Balance and Financial Statements •
Financial statements Previous S_ALR_87012284 produces the classic view New S_PL0_86000028 new G/L financial statements Notes to the financial statements are also possible
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Financial Statements
Drilldown by different characteristics is possible through the navigation option
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Reporting – Key Configuration Points •
Define balance display Interactive characteristics Create/change forms for new G/L reports Report Painter Create/change reports for new G/L Characteristics Variables Define constants Enter constant values
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Account Balance Reporting
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What We’ll Cover … • •
Key considerations for implementation new G/L functionality Ledgers Segments Real-time integration Document splitting Changes to existing functionality Profit centers and cost of sales accounting Parallel accounting Allocations Planning and reporting Migration to the new G/L Wrap-up
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Migration to the New G/L •
Two options available to existing customers: New customer install Migration New customer install Install SAP as if converting from another legacy system Creates a “ fresh start” for existing customers Data conversions required (data extracts and loads) Data is split and posted to new G/L when loaded to new system Migration may occur at any point throughout the fiscal year
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Migration to the New G/L (cont.) •
Migration Involves migrating existing data from classic ledgers to the new G/L SAP provides migration tools to perform the migration Migrations must be performed within a project SAP is required to be involved with migrations and provide back-office support (SAP Note 812919) Migration must occur over a fiscal year There are strategies to deal with organizations that have multiple company codes in the same instance and have different fiscal year ends
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Services for Migration to the New G/L •
Services that SAP offers with new G/L migration include: Validation of migration scenarios Scenario-based migration programs Preconfigured migration settings for the migration Consistency check of the migration customizing settings Technical consistency check of the migrated data Support throughout the duration of the migration project through the new G/L Migration Back Office SAP ERP 6.0 (ECC 6.0) offers simulation tools to further aid with the migration process The migration tools have been back-ported to mySAP ERP 2004 ECC 5.0 with Support Package 10
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Migration Dates •
Migration date The start of the fiscal year for which migration is performed Activation date Date new G/L is activated
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Old Fiscal Year
Fiscal Year End
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Phase 0 Design and configuration Classic General Ledger Migration date
Phase 2
Closing and migration
Activation and use
Classic General Ledger
new General Ledger Activation date
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Migration Process 1. Set up customization of new G/L 2. Set up customization of the migration 3. Perform year-end closing operations
Posting periods must be closed for prior year Start the migration Create worklists Create splitting information (if relevant) for open items Create splitting information (if relevant) for documents Post open items to new G/L Post documents to new G/L Post balance carry forward to new G/L
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Migration Process (cont.) 11. If applicable, perform manual reposting of balance carry forward to dimensions not contained in classic G/L (e.g., profit center) 12. Activate new G/L 13. End migration 14. Deactivate classic G/L after transition period
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Key Migration Activities •
Open items All items (customers, vendors, G/L accounts) flagged as OPEN on the migration date are included in the worklist System performs splitting on these items and updates them to the new G/L (if document splitting is activated) All other non-open line items included in documents that have open items are not transferred to the new G/L through this process
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Key Migration Activities (cont.) •
Balance forward All other G/L accounts (non-open items) are transferred to the new G/L using period zero totals from GLT0 Additional repostings may be required to assign amounts to dimensions not contained in GLT0 (e.g., profit center or segment) Current year documents All documents created since the migration date and before the activation date are included in a separate worklist These documents are split and posted to the new G/L in their entirety
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Points to Consider When Migrating •
Timing of migration Migration should occur shortly after the year-end is concluded Minimizes number of documents to migrate Reduces risk of errors occurring with current postings Scenarios Consideration given to the type of scenarios Alternate ledgers Document splitting on multiple characteristics, etc. Different fiscal year-ends in the same migration plan
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Points to Consider When Migrating (cont.) •
Company codes Consider company codes included in migration plans Is document splitting required in the post-migration environment? Are there cross-company documents between company codes? Clearing open items Consider cleaning up long-outstanding open items prior to migration Reduces risk of potential errors Improves performance of migration (less data to migrate)
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What We’ll Cover … • •
Key considerations for implementation new G/L functionality Ledgers Segments Real-time integration Document splitting Changes to existing functionality Profit centers and cost of sales accounting Parallel accounting Allocations Planning and reporting Migration to the new G/L Wrap-up
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Resources •
SAP training course AC210 – “ New General Ledger” Extensive training course on the new G/L offered by SAP SAP Service Marketplace – http://service.sap.com * General information notes on the new G/L SAP Note 826357 – Profit Center Accounting SAP Note 779251 – Parallel Accounting SAP Note 927241 – FAQ new G/L accounting On your take home CD: More detail on document splitting, parallel accounting, parallel accounting and currencies, migration scenarios, phases of the migration process, and lessons learned
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* Requires login credentials to the SAP Service Marketplace
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Resources (cont.) •
SAP Help online http://help.sap.com/saphelp_erp2005vp/helpdata/en/2d/830e405 c538f5ce10000000a155106/frameset.htm Details of the new functionality available in the new G/L Financials Expert Gary Fullmer, “ What’s Happened to Your R/3 Functionality in mySAP ERP 2004?” (Financials Expert , February 2005). Summary of key changes in mySAP ERP 2004 Odyssey Business Consulting Online www.odysseybcs.com/pdf/TheOdysseyQuarterlyJanMar2007.pdf Highlights of the new G/L functionality
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7 Key Points to Take Home •
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Additional ledgers can assist with multiple reporting requirements, simplifying data entry, and reducing the number of accounts required for parallel accounting Segments are a new organizational object that can facilitate segmental reporting and support financial statements below the company code level Real-time integration between CO and FI has replaced the reconciliation ledger. It creates real-time updates for any COrelated postings that cross G/L characteristics, reducing the risk of CO and FI being out of balance. Document splitting enables the creation of fully balanced financial statements for any predefined characteristic of the new G/L
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7 Key Points to Take Home (cont.) •
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Allocations can be performed in the new G/L on any characteristic. Assessments or distributions can be carried out on any G/L account. Planning can be performed in the new G/L, enabling plan vs. actual reporting directly from the G/L. You can customize reports with Report Painter/Writer. Migration tools are provided by SAP to support the migration from the “ classic” to the new G/L, but any such initiative requires support from SAP’s migration team
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Your Turn!
How to contact me: Stuart Paradies
[email protected] 122
