New General Ledger Accounting Part-2

Continuing with the New G/L accounting Part -1 covered under: New General Ledger Accounting - Part 1

In this document we will be covering one of the major topic in New General Ledger Accounting i.e. Ledger which includes Leading and Non-Leading Ledger overview along with the configuration steps.

LEDGER

A ledgeris a section of a database table. A ledger contains only those dimensions of the totals table that the ledger is based on and that are required for reporting.

The following types of ledgers are available:

Leading Ledger

The leading ledger is based on the same accounting principle as that of the consolidated financial statement. It is integrated with all subsidiary ledgers and is updated in all company codes. In each company code, the leading ledger automatically receives the settings that apply to that company code for local currencies, fiscal year variant, and posting period variant.

There has to be exactly one leading ledger. The leading ledger gets many of its "control parameters" from the company code. Company codes gets automatically assigned to the leading ledger (cannot be deactivated).

Group valuation is done at leading ledger. The leading area of asset accounting (area 01) is posted to the leading ledger. Controlling is integrated to the leading ledger.

Non-Leading Ledger

The non-leading ledgers are parallel ledgers to the leading ledger. They can be based for example on local accounting principles. You must activate a non-leading ledger by company code.

Note:

SAP provides the leading ledger 0L and totals table FAGLFLEXT with the standard system.

Only the values from the leading ledger are posted to CO in the standard system The non-leading ledgers can then be assigned to currencies and fiscal year variants that differ from the leading ledger.

There can be only one leading ledger for the New G/L, but you can have number of non-leading ledgers. 

Ledger Configuration steps:

1. Define Ledgers for General Ledger Accounting

Create your ledgers for General Ledger Accounting and set the Leading indicator for one of the ledgers.

0L is the Leading Ledger as per the standard SAP system.

Click on New Entries: Update the following:-

Click on Save. If the ledger is to be a leading ledger you need to select the Leading check box.

Table - FAGLFLEXT

SAP delivers the totals table FAGLFLEXT for General Ledger Accounting in the standard system. When the New General Ledger Accounting is activated, the totals records in General Ledger Accounting are updated in the standard totals table FAGLFLEXT.

The totals table of New General Ledger Accounting (=> FAGLFLEXT) updates more entities than was possible in the classic totals table (=> GLT0).

FAGLFLEXT table—a total of 142 fields which include Cost Center, Profit Center, Functional Area, Business Area, Controlling Area, as well as Account Number, Company Code, and Segment all included in one table. You can also extend this FAGLFLEXT table with additional fields, either predefined SAP fields or new customized fields.

2. Define Currencies of Leading Ledger

This configuration is only required when you want to activate additional currencies for your leading ledger.

Currencies is to be applied in the leading ledger. The local currency (as company code currency) is specified in the company code settings. You can assign multiple currencies to your company code for the leading ledger.

The group currency must be stored in the client definition which can be seen using transaction code SCC4.

Here we can select valuation 1 & 2 only if the following conditions are met:

1) Controlling area has been assigned to the company code

2) A currency and valuation profile is defined in the controlling area

3) The currency and valuation profile is active which has the group and profit center valuation view

Caution

You cannot change the currency type for company codes that are already productive.

Double Click on company code to maintain currency.

Click on New Entries

Click on Save.

Currency type

The currency type defines the role of the parallel currency. A distinction is made between the following types of currencies:

Company code currency

Group currency

Hard currency

Index-based currency

Global company currency

Exchange rate type for the translation

The exchange rate type determines the exchange rate, which is stored in the system, is applied in calculating the additional amount fields. As in the case of the local currency, you can use exchange rate type M (average rate) or any other exchange rate type.

Base currency for the translation

The calculation of the amounts in parallel currencies can be determined using the document currency of the local currency.

Translation date

The rate for translation amounts can be based on the translation date, the document date, or the posting date.

3. Define and Activate Non-Leading Ledgers

Here you make the following settings for the non-leading ledgers for each company code:

• You activate the non-leading ledgers in the company code.
• You can define additional currencies beyond that of the leading ledger. The first currency of a non-leading ledger is always the currency of the leading ledger (and hence that of the company code). For the second and third currencies of a non-leading ledger, you can only use currency types that you have specified for the leading ledger.
• You can define a fiscal year variant that differs from that of the leading ledger. If you do not enter a fiscal year variant, the fiscal year variant of the company code is used automatically.
• You can specify a variant of the posting periods.

Click on New Entries

Update the following:-

Click on Save

Take a drop down in the field FV (Fiscal year variant)

You can even assign a different posting period variant to this ledger

Click on Save.

    4. Assign Scenarios and Customer Fields to Ledgers

In this step, we need to assign the following to the ledgers:

Scenarios

Scenarios identify the fields that are updated in Ledgers during posting.

• A ledger can be assigned one scenario, several scenarios, or even to all six at once.
• The decision as to how many scenarios to assign depends solely on which "facts" / "business aspects" you want to model in the corresponding (non-leading) ledger.

You cannot define your own scenarios.

**Need to activate only the scenarios that you need.

Note: If a scenario is not activated, then it is hard to activate a scenario after GO LIVE. You need to take SAP‟s help to implement it. It is suggested to activate all the scenarios upfront to avoid such hassles.

Custom Fields

You can add custom fields (that you have already defined) to the ledger.

Versions

This enables you to make general version settings for the ledger that depend on the fiscal year. In the versions, you specify whether actual data is recorded, whether manual planning is allowed, and whether planning integration with Controlling is activated.

Select 

Double Click

Double Click

Double Click

Click on

Click on Save so as to save the customization.

Similarly Update for Ledger Y1 & Y2.

To assign Profit center update you need to have controlling area assigned to company code and profit center module active.

     5. Activate Cost of Sales Accounting (Optional)

     6. Define Ledger Group

A ledger group is a combination of ledgers for the purpose of applying the functions and processes of general ledger accounting to the group as a whole.

You do not need to create a ledger group for all ledgers because the system automatically posts to all ledgers when you enter a ledger group in a function.

Representative Ledger of a Ledger Group

The system uses the representative ledger of a ledger group to determine the posting period and to check whether the posting period is open.

If the posting period for the representative ledger is open, the system posts in all ledgers of the group, even if the posting period of the non-representative ledgers closed. Each ledger group must have exactly one representative ledger.

If the ledger group has a leading ledger, the leading ledger must always be identified as the representative ledger.

We do not want to group the ledgers, therefore we do not do any configuration here.

In the Series with New G/L Accounting Customization, will come up next with Parallel Accounting & Parallel Ledger.

Refer toNew General Ledger Accounting - Part 1

Appreciate to have your views, comments and suggestions.

Warm Regards,

Mukesh Sharma