New General Ledger Accounting Part - 3

Continuing with the New G/L accounting Part -1 & Part - 2 covered under: New General Ledger Accounting - Part 1  & New General Ledger Accounting Part-2 respectively.

In this document we will be covering one of the major topic in New G/L is Parallel accounting which includes overview along with the configuration steps on Parallel accounting:

Parallel accounting means that a company's financial statements need to be created in accordance with different accounting principles. This is because a local view (such as U.S. GAAP in the U.S.) is no longer sufficient by itself in a globalized world of creditors (banks, shareholders) and business partners. An internationally recognized accounting standard is increasingly in demand.

Examples of internationally recognized accounting principles include:

• IAS
• IFRS
• U.S. GAAP

You can portray parallel accounting in your SAP system. This enables you to perform valuations and closing preparations for a company code according to the accounting principles of the group as well as other accounting principles, such as local accounting principles.

The New General Ledger supports Parallel Accounting by using either parallel Accounts or parallel ledgers.

In New GL, both approaches are considered equally powerful.

The choice will depend on the specific customer situation.

The parallel accounts approach in the New GL is as powerful as in classic GL in

R/3.

The parallel ledgers approach in the New GL is much better than the SAP R/3 approach of using classic GL plus the special ledger application.

Benefits of Parallel Ledger

Standard reporting for multiple ledgers

Postings into multiple ledgers

Postings per specific ledger

Closing activities are run separately in parallel ledgers.

Configuration Steps:

1. Define Accounting Principles

Here, you define your accounting principles. You then assign the desired ledger group to the accounting principles.

For performance reasons, you can combine several different accounting principles in one entry; for example, you create one accounting principle for IAS/US GAAP. This can be useful if, in an application, you have to create the data for each accounting principle, even if the postings derived from the data are identical for each accounting principle.

Caution

The accounting principles that you have defined are available in various functions in Financial Accounting, SAP therefore advises you not to delete any accounting principles.

Click on New Entries

Maintain the input parameters as below:

   Click on Save

2. Assign Accounting Principle to Ledger Groups

Here, we assign the desired ledger group to your respective accounting principles.

Click on New Entries:

Click on Save.

In the next series with New G/L Accounting Customization, will be covering "Document Splitting".

Refer toNew General Ledger Accounting - Part 1  &  New General Ledger Accounting - Part 2

Appreciate to have your views, comments and suggestions.

Warm Regards,

Mukesh Sharma