Introduction to Migration to New General Ledger

I n t r od oduc t i on t o M i g r a t i o n N e w Ge n e r a l Ledger SAP AG

R e as a s on o n s f or o r t h e M ig i g ra r a t io io n Classic General Ledger Accounting in SAP R/3 Enterpris e

New New General Ledger Ledger Ac counti ng in SAP ERP

Currently: Dispersed Over Diff. Areas

SAP ERP: O n e Si Si n g l e E n v i r o n m e n t N e w G e n er er a l L e d g e r A c c o u n t i n g s u p p o r t s

C l a s s ic ic G L L ed e d g er e r CoGS Legal Ledger Requirements Profit Center Ledger Management and S egm egment ent Reporti R eporting ng S p ec ec i a l Pu Pu r p o s e L e d g e r Multidimensional, customer-specific I n d us us t r y -s -s p e c i f i c l e d ge ge r s Balance sheet for grant, fund, title …

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SAP AG 2006, Introduction to Migration / Solution Managementof Financials / ‹#›

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Legal requirements

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Manage Man agement ment and segment reporting

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Extens Ext ensibility ibility for industrie industries s

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Exten Ex tensibility sibility for custome customers rs

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Balance sheet for any dimension

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Parallel Pa rallel set set of books

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Fast close

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Reduction Re duction of TC TCO O

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International Inte rnational Accounting Standa Standards rds

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Compliance Com pliance & transparency transparency

P oi n t t o R e m e m b e r :

T h e m ig r a t io n i s a l w a y s a

p r o j e c t i n i t s o w n r i g h t !

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Introduction to Migration Initial Situation and Target Scenario Process and Technical Implementation

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M i gr a t i o n I s a P ro j ec t M i g r a t i o n d o e s n o t o n l y i n v o l v e t h e t e c h n i c a l t r a n s f e r o f d at a ; i t can also involve c hanges to business processes. 

Migration is always performed in the form of a project, entailing project phases, milestones, tests, and so forth

F u nd a m e n t a l p r e r e q u i s i t e f o r t h e m i g r a t i o n : 

Successful u pgrade of the SAP system to SAP ERP

The migration does not entail:

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Implementation of parallel accounting

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Implementation of segment reporting

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Changeover of the leading valuation if parallel valuati on already used

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Consideration of scenarios with the company code approach (not supported by SAP in future, project solution)

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Simultaneous changeover of the leading depreciation area in FI-AA (->SLO)

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Change to chart of accounts or conversion of chart of accounts (->SLO)

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Currency changeovers (such as introduction of new currencies -> SLO)


P h a s e M o d e l f or t h e M i g r a t i o n Pr i n c i pl e s o f M i g ra t i o n  

The migration date is always the first day of a fiscal year (current or fut ure fiscal year) Year-end closing of the old fiscal year must be complete before New General Ledger Acc oun ti ng i s acti vat ed

M i g r a t i o n Da t e Old Fiscal Year

Classic GL Accounting

New Fiscal Year

Technical upgrade to ERP Creating blueprint for New General Ledger Accounting  Planning the migration  Making Customizing settings in New General Ledger Accounting  Analysis of all business processes if document splitting is to be used  Making Customizing settings for document splitting 

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New GL Acc tg

Classic GL Accounting

Phase 0 

A c t i v a t i o n Da t e

Phase 1

Year-end closing for the old fiscal year  Making Customizing settings in New General Ledger Accounting  Making Customizing settings for the migration  Activating document validation (only relevant if document splitting is used) 


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Phase 2 Creation of document splitting information for items of old fiscal year that are open on the migration date  Transfer of documents from phase 1 to new tables: FAGLFLEXA / FAGLFLEXT  Transfer of balance carryforward for new fiscal year to FAGLFLEXT 

S A P G e n er a l Le d g e r M i g r a t i o n T o ac h i ev e a h ig h d eg re e o f s a fe t y i n t h e m i gr at i o n p ro j e c t s , SA P d ec i d e d t o a c c o m p a ny e a c h m i g r a t i o n p ro j e c t w i t h t h e SA P Ge n e ra l L e d g e r M i gr at i on s er v i c e 

obligatory service for each migration project

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once the service is ordered, the migration programs will be provided for download

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service offered at fixed price

W i t h t h i s s e r v i c e S A P p r o v i d es s c e n a r i o -b a s e d m i g r a t i o n f u nc i o n a li t y c o m b i n ed w i t h s e r v ic e s e s s io ns t o c h e c k d at a consistency

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C o n t e n t o f S A P G e n e r a l L e dg e r M i g r a t i o n s e r v i c e Sc e n a ri o -b a se d n ew Ge ne r al L e dg er M i g ra t i o n C o c k p i t 

Step-by-step guidance through the migration via process tree and monitor

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Status administration with logs

Re m ot e s e rv i c e s es s io ns 

Service session to assure right migration approach

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Service session including technical validation and plausibility checks in migrated test data

B a c k of f i c e s u pp o rt 

24h/day technical development support at production weekend

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Development support for test migrations during working hours

Complete migration service offered at fixed price

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S A P G e n er a l L e d g e r M i g r a t i o n – P r o c e s s a n d Ov e r v i e w

New-G/L customer project (assistence of [SAP-]consultants possible) Subproject migration (assistence of [SAP-]consultants possible) r e t m s e o u t s q e u r C ‚ n o e r i s i a s n e o S i t k s c e a u b Q d e e F

e c i r v r o f e t s c n a o r i t n t a o r g C i m

1 n o i s s e s e c i v r e s

n o i s s e S k c a b d e e F

l a e n l o b i i t i s d s d o a p r g o n f i t t c l u a s r t n n o o c C

mig ration test by cust omer

2 n o n i o s i s s e s S e s k e c c a i b v r d e e e S F

t r . o l c p n i p u n s o O i t B a r . g n i h m c e t

New G/L

v i t d k e u c d n u o r o p n n a

Scenario v alidation

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test validation



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A n a ly s is o f t h e I n it i a l Si t u at i o n I 

Is classic Profit Center Accounti ng in use?

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Is Cost of Sales Accounting in use?

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How is Special Purpose Ledger used? – Which are used? – In operational system or in con solidation environment? – Online update or by rol lup? – Document splitting already used in FI-SL?

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Ar e ot her SAP ERP sys tem s or SAP b usi ness su it e modul es implemented? (suc h as HCM) How are interfaces to external systems used? – Ad jus tm ent s to in ter fac es nec ess ary ?

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How is Consolidation used? – How is the data transferred?

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A n a ly s is o f t h e I n it i a l Si t u at i o n II 

How are G/L accounts o n an open item basis managed? – Relevant if you w ant to accompany the migration with the introduc tion of document splitti ng. Number of documents to be split?

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How many documents are in t he migration period (phase 1)? – These documents must be " migrated" (and may first need to be processed, enhanced w ith additional account assignments)

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How many company codes and cross-company-code clearings exist?

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Ar e di ff erent f is cal year v ari ant s i n u se?

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Ar e addit io nal cu rr enci es i n s peci al pur po se ledg ers in use?

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Is parallel valuation in use? – Special feature: Migration f rom account approach to ledger approach

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…


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S c e n a r i o s S u p p o r t e d b y SA P G en e r a l L e d g e r M i g r a t i o n s e r v i c e (1 ) S c e n a r i o 1 : M e r g e o f FI l e d g e r 

Merging of classic G/L ledger, consolidation preparation ledger and cost-of-sales ledger

Scena rio 2: Merge of FI, PCA and/or SL ledger 

Scenario 1 and additional merging of Profit Center Accounting and Special Ledger

S c e n a r i o 3 : S c e n a r i o 2 + Do c u m e n t s p l i t ( e . g. f o r p r o f i t cent er, segment or business area reporting) 

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Document split allows b alance sheet on additional dimensions such as pr of it center , segmen ts


S c e n a r i o s S u p p o r t e d b y SA P G en e r a l L e d g e r M i g r a t i o n s e r v i c e (2 ) S c e n a r i o 4 : Sc e n a r i o 2 + Ch a n g e f r o m a c c o u n t a p p r o a c h t o l e d g e r s o l u t i o n f o r p a r a ll e l a c c o u n t i n g 

Switch from parallel accounting by parallel accounts to parallel ledger

S c e n a r i o 5 : Sc e n a r i o 3 + Ch a n g e f r o m a c c o u n t a p p r o a c h t o l e d g e r s o l u t i o n f o r p a r a ll e l a c c o u n t i n g 

See descriptions of scenarios 2,3,4

A n y s c e n ar i os t h a t d i f f e r fr o m t he a b o v e st an d a r d s c e n a r i o s a r e m i g r a t e d p r o j e c t -b y -p r o j e c t b a s e d o n t h e s c e n a r i o t h a t c o m e s n e a r es t t o t h e c u s t o m e r ’s s c e n a r i o . 

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The change from an existing parallel accounting solution to a new par all el ac co unt ing sol ut io n wil l b e based o n scen ario 4 or 5 wh ereas the introductio n of a parallel accounting solutio n (or keeping th e account approach) will be based on scenario 1, 2 or 3. Additio nal consulti ng might be required.


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W ha t i s t h e t a r g e t s c e n a ri o ?

The business m odel and its p ortr ayal in New General Ledger Acco un ting must fi rst b e defined befor e th e mig ration. The possibility to seperate the different steps should be checked (for example: change from account to ledger solution, documente split, etc.), to reduce the complexity of the migration project.

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M i g r a t i o n Wi t h o ut D oc u m e nt Sp li t t i n g – Building Balances in New General Ledger Accounting Initial situation

Target scenario

Balances from classic General Ledger Account ing (GLT0) / PCA / FI-SL…

Balances in New General Ledger Accounting FAGLFLEXT

Balance sheet accounts / accts not managed on OI basis/ no reconciliation accounts CoCode 1000

1.

CF 150

2.

CoCode 1000

Balance Carryforward

Per 1 100 Per 2 200

CF 150

Documents from phase 1 Per 1 CoCo de 1000 Per 2 CoCo de 1000

100 200

Subsequent build of FAGLFLEXA and FAGLFLEXT

Retained earnings accounts

3.

CoCode 1000

CF 500

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CoCode 1000

Balance carryforward

CF 500


M i g r a t i o n Wi t h o ut D oc u m e nt Sp li t t i n g – Tr a n s f e r o f Op e n I t e m s New General Ledger Accou nting/ Build FAGLFLEXT and FAGLFLEXA for new fiscal year

Open items < migration date Receivables / pay abl es

1.

Transfer of cumulated balance carryforward OI CoCode 1000 OI CoCode 2000

FAGLFLEXT Reconciliation account CoCode 1000 CoCode 2000

Ad di ti on al b ui ld of FAGLFLEXA and FAGLFLEXT for old fi scal years

CF 100

CF 200 100 Per 1

2. Documents from phase 1 Per 1 CoCod e 1000 Per 2 CoCod e 2000

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100 200



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200 Per 2

M i g r a t i o n Wi t h D oc u m en t Sp l it t i n g Building Balances in New General Ledger Accounting Initial situation

Target scenario

Balances from classic General Ledger Account ing (GLT0) / PCA / FI-SL…

Balances in New General Ledger Accounting FAGLFLEXT

1.

Balance sheet accounts / accts not managed on OI basis/ no reconciliation accounts CoCode 1000/ Seg 1

CoCode 1000 Segment 1


CF 150

Per 1 100 2.

CF 150 Per 1 200

Documents from phase 1 Per 1 Segment 1 100 Per 1 Segment 2 200

Segment 2

Transfer posting f or balance carryfwrd using TA FBCB, where necessary


Retained earnings accounts

3.

CoCode 1000/ Seg1

CF 500

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CoCode 1000/ Seg1


CF 500


M i g r a t i o n w i t h Do c um e nt Sp li t t in g – E nr i c h m e n t o f " Ol d " O p e n I t e m s w i t h A c c o u n t A s s i g n m e n t s Select items that were open on the migration date, that is  

Items that are currently still open, or Items with a clearing date falling after the migration date

Customers Vendors G/L Accounts Cr e at e

Work list

En r i c h

BAdI

U p d a t e Splitting info table

Build

FAGLFLEXA Balance FAGLFLEXT carryforward

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M i g r a t i o n Wi t h D oc u m en t Sp l it t i n g – T r a n sf e r o f Op e n I t em s New General Ledger Ac counti ng/ Build FAGLFLEXT and FAGLFLEXA for new fis cal year

Open items < migration date Receivables / pay abl es

1.

Transfer of cumulated balance carryforward OP 100 Segment 1 OP 200 Segment 2

For each dimension by reading th e splitting information FAGLFLEXA bui lt additionally for old fiscal years

FAGLFLEXT Reconciliation account Segment 1 Segment 2

CF 100

CF 200 100 Per 1 200 Per 2

2. Documents from phase 1 Per 1 100 Segment 1 Per 2 200 Segment 2

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Subsequent build of FAGLFLEXA and FAGLFLEXT including processing of document splitting


T e c h n i c a l Pr o c e d u r e f o r P e r f or m i n g t h e M i g r a t i o n 

Determination of the migration objects ("old" OIs and documents from phase 1)

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Transfer of balance carryfor ward (accounts not managed on an open item basis)

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If applicable, reposting of balance carryforward values (accounts not managed on an open item basis)

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Preparation of documents from phase 0 (enhancing open items with document splitting information)

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Transfer of "old" open items (customer/vendor accounts, G/L accounts) and simultaneous bui ld of balance carryforward for r elevant reconciliation accounts

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Preparation for documents from phase 1 (supplementary account assignment, such as Segment or Profit Center)

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Transfer of docu ments fro m phase 1 into tables of New General Ledger Ac co unt in g Reconciliation of the data Ac ti vat io n o f New G eneral Ledg er A cc ou nt ing Completion of the migration


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Overview of a Possible Migration Process  

Start of the migration project An aly si s o f t he i ni ti al s it uat io n and defi ni ti on of th e targ et b us in ess s cen ari o

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Upgrade to SAP ERP

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Customizing New General Ledger Accounting for the target scenario

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Testing the target scenario in an appropri ate test enviro nment

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Customizing of migration

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(Iterative) migration test-run in t he test system:  

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Al ong si de t he m ig rat io n t est -ru n: cl os in g th e ol d f is cal year

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Migration in the production sy stem (performed once) after final clo sing of the pr evi ou s f is cal y ear

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Ac ti vat ion of New Gen eral Ledg er A cc ou nt in g

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Creation and analysis of a mi gration log Adj ust ment s to C ust om izin g new run etc… Then transport of migration settings to production system

End of the migration proj ect


A d d i t i o n al A c t i vi t i e s – D o c u m e n t s t o B e P o s t e d S u b se q u e n t l y w i t h D o c u m e n t S p l i t t i n g

A n a ly s is o f d o c u m e nt s pl it t i ng i n f or m at i o n 

G/L account assignment

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Check document types

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Check assignment of business transactions

A l t e rn at i v e Cu s t o m i zi n g 

Document splitting method for migration

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Document-specific b usiness transaction assignment

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Document-specific it em category assignment

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Al ter nativ e clearing rel ati on shi p

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Edit account assignment information

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Specify document splitt ing relationship


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Do c u m e n t V al i da t i o n – O n l y Wh e n D o c u m e n t S p l it t i n g I s U s e d Phase 1 in production syst em Check on the current posting data against rules for document splitting

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- Lo g - Online warning message + log - Error message

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Adju st ments po ss ible f or sp ecial pr oc esses - Business transaction / transaction / batch input

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Evaluation of Migration 

Evaluation of the migration status - Statistics, error overview, object list s

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Log of b alance origin

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Ledger comparison

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Display of document splitting info rmation (Ledger-independent)

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Log of migr ation-specific adjustments to document splitting

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Simulation of document split ting


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Co m p l et i o n o f M i g r at i o n a c t i v i t y i n Mi g ra t i o n C oc k p i t 

"Complete Migration Plan" After th e migr ated dat a has been successf ul ly reconciled and checked

Effects

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The migration programs for this mi gration plan can no longer be executed.

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The manual r eposting of balance carryforward (FBCB) can no lo nger be performed.


S p e c i a l F e at u r e s i n t h e M i g r a t i o n I M i g r a t i o n t o m u l t i p l e l e d ge r s 

Open items are not mi grated for specific ledgers, that is to say, the balance carryforward fr om open items is always updated for all ledgers

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In the case of non-calendar fi scal years (for o ne company cod e), multipl e migration plans have to be used (bundling o f company codes for whi ch the same fiscal year is d efined) - Execution of the migration plan with the earliest migration date first

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Depending on t he tabl es curr ently u sed (GLT0, GLFUNCT, GLPCT), they can in fu ture be combined in a single ledger - Not mandatory to have multiple ledgers

M i g r a t i o n w i t h i n t r o d u c t i o n o f t h e se g m e n t 

Supplementary account assignment of FI documents (phase 1) – Scenarios in the standard delivery A) Pr of it Cent er Ac co unt in g alr eady u sed Derive segment from profit center B) Profit center not y et used Set derivation of profit center either from CO account assignment or by program – Ac ti vat e segm ent d eri vat io n

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S p e c i a l F e at u r e s i n t h e M i g r a t i o n I I M i g r a t i o n w h e n Pr o f i t C e nt e r A c c o u n t i n g i s a c t i v e 

SAP recommends depicting Profit Center Acc ounting within New General Ledger Ac co unt in g

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If classic Profit Center Acco untin g is us ed, see SAP Note 826357

M i g r at i o n w i t h c u s t o m e r f i e l d s 

Estimation of the expected number of totals records if a customer field is included in FAGLFLEXT (see also SAP Note 1045430)

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Customer field does not necessarily have to be coupled with customer totals tables (see also SAP Note 820495)

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Enrichment of open items and documents (phase 1) for customer field

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Build balance carryforward and period balances using customer field

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If financial reporting uses this field, a zero balance must exist for each entry in each doc ument

W h at i s n o t m i g r a t e d ?

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Statistical noted items in general, down payment requests, payment requests

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Reference documents (recurring entry original documents, sample documents)

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Parked documents


S p e c i a l F e at u r e s i n t h e M i g r a t i o n I I I R e p o st i n g o f b a l a n c e c a r r y f o rw a r d ( t r a n s a c t i o n F B CB ) 

Repostings only possi ble in phase 1 (that is, before the activation date for New General Ledger Accounting)

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The transfer of balance carryfor ward needs to have been completed

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No postings to OI-managed accounts or reconciliation accounts (correct target balances are built cumulatively from the enriched open items)

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Amo un ts mu st be s pec if ied e xpl ic itl y in all cu rr enc ies (no auto mati c tr ansl ati on into local currency)

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Update of FAGLFLEXT and GLT0

Ledger comparison produces a match!

If FBCB documents exist, it i s not pos sibl e to reset the migration (RESTORE_ AL L)

Migration and archiving 

Open items always remain in the system

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Documents fro m phase 1 must not be arch ived

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Totals records (also from previous years if applicable) must be available – Totals records may also be transferred from previous years by means of r ollup

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I n t e g r a t i o n A s p ec t s A s s e t A c c o u n t i n g (FI -AA ) 

Depreciation area 01 must be assign ed to the leading ledger

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Where necessary, conversi on of depreciatio n areas in FI-AA usi ng SLO (not part of migration to New General Ledger Accounting)

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Previous y ear must be closed in Asset Ac counting

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Depreciation area concepti on (delta areas) and correspon ding assi gnment to ledgers in General Ledger Accounting

T r e a s u r y a n d R i s k M a n a g e m e n t (C FM ) 

Valuation area 001 must be assig ned to th e leading ledger

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Valuation area conception and corresponding assignment to ledgers i n New General Ledger Accounting – Control via accounting principle

Re al -t i m e i nt e g ra t i on w i t h Co nt r o ll i ng 

Definition of t he time of the conversion fro m the reconciliation ledger approach to real-time integration – Independently of the time of the migration, that is to say, the conversion can also occur beforehand

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R e s t r i c t i o n s A f f e c t i n g S A P E RP 2 0 0 4 S A P N ot e 8 6 2 5 2 3

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The scenario for the transition fr om parallel accounts t o parallel ledgers is not su ppor ted in SAP ERP 2004.

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The functions for validating d ocument splitti ng are not available in SAP ERP 2004.


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T r a i n i n g c o u r s e s a b o u t N e w G /L a n d M i g r a t i o n t o N e w G/L

N e w g e n e ra l l e d g e r a n d m i g r at i o n t o n e w g e n er a l l e d g er i s c o v e r e d i n g r e a t e r d e p t h i n t h e f o l l o w i n g SA P t r a i n i n g courses: 

AC210: New Gener al Le dger Ac co un ti ng in S AP ERP (4 day s)

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AC212: Mi gr ati on to New Gen eral Ledg er A cc ou nt ing (3 Tage)

B ot h t r ai ni ng c o ur ses ar e s t ro ng ly r ec o m en de d a s p r e r eq u i s i t f or t h e i m p l e m en t a io n a n d m i gr at i o n

P l e a s e r e f e r t o t h e SA P Ed u c a t i o n S er v i c e t o f i n d o u t w h e n thes e courses are being held in your region. You also find this information at www.service.sap.com/trainingcatalog

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S o, p l e a se r e m e m b e r :

T h e m ig r a t io n i s a l w a y s a

p r o j e c t i n i t s o w n r i g h t !

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Introduction to Migration to New General Ledger

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