The SAP General Ledger

Eric Bauer studied Business and Economics Education at the University of Mannheim, Germany, where he majored in Financial Accounting and Financing. His thesis was awarded the Barbara-Hopf-Stiftung Prize. He then completed a two-year internship while also working as a freelance trainer in basic and more advanced training programs of a variety of banking, insurance, and retail companies. Eric joined SAP in 1998, first as an Education Consultant in Financial Accounting, then as an Education Development Coordinator in the Financials application area with responsibility for international training development. In 2004, he was active in the Financials and Human Capital Management areas as a Director of Education Training Delivery with responsibility for the design, creation, and delivery of global education solution portfolios. Eric has worked in EMEA Regional Solution for Sales Financials since 2006. Joerg Siebert began working as a consultant and trainer in the Financial Accounting area in 1996, and moved to Financials Product Sales at SAP Germany in 2003. His activities comprise both SAP R/3 and the new components in SAP ERP Financials, such as Financial Supply Chain Management, Corporate Governance, and SAP NetWeaver BI. His extensive practical experience was gained as an SAP trainer and FI/CO consultant at Cap Gemini Ernst & Young and DCW Software. His certification as a consultant for SAP FI/CO and SAP SEM, his degree in Information Management, and his qualification as CPA are the basis of Joerg's extensive technical competence.

* ... Introduction ... 13 * 1 ... New General Ledger in SAP ERP An Overview ... 19 * 1.1 ... The Path to New G/L in SAP ERP ... 19 * 1.1.1 ... Background ... 19 * 1.1.2 ... SAP R/3-Based Solutions for Financial Accounting ... 23 * 1.1.3 ... The Fragmentation Problem ... 29 * 1.2 ... Enhancement Package Technology ... 29 * 1.3 ... New General Ledger ... 32 * 1.3.1 ... Additional Functionality in General Ledger ... 33 * 1.3.2 ... Parallel Accounting ... 34 * 1.3.3 ... Default Field Extension ... 37 * 1.3.4 ... Segment Reporting ... 39 * 1.3.5 ... Document Online Split ... 41 * 1.3.6 ... Real-Time Integration of CO into FI ... 41 * 1.4 ... Conclusion ... 43 * 2 ... Design and Features of the Ledgers ... 45 * 2.1 ... Features of the Ledgers ... 45 * 2.1.1 ... Basis of the Ledgers ... 46 * 2.1.2 ... Leading Ledger ... 47 * 2.1.3 ... Non-Leading Ledgers ... 54 * 2.1.4 ... Data Concept ... 57 * 2.1.5 ... Changes to the Definition and Assignment of the Ledgers ... 64 * 2.1.6 ... Defining Ledger Groups ... 64 * 2.2 ... Scenarios ... 66 * 2.2.1 ... Defining and Assigning Scenarios for Ledgers ... 67 * 2.2.2 ... Scenario Views: Data Entry View and General Ledger View ... 69 * 2.2.3 ... Business Area Scenario ... 73 * 2.2.4 ... Profit Center Update Scenario ... 76 * 2.2.5 ... Segmentation Scenario ... 77 * 2.2.6 ... Preparations for Consolidation Scenario ... 88 * 2.2.7 ... Cost-of-Sales Accounting Scenario ... 93 * 2.2.8 ... Cost Center Update Scenario ... 97 * 2.3 ... Customer Fields ... 98 * 2.3.1 ... Extending the Coding Block ... 98 * 2.3.2 ... Adding Fields to the Totals Table ... 100 * 2.3.3 ... Defining Customer Totals Tables ... 104 * 2.3.4 ... Adding Customer Tables in Enjoy Transactions ... 105 * 2.4 ... Conclusion ... 107 * 3 ... Integration in Financial Accounting ... 109 * 3.1 ... Profit Center Accounting in New General Ledger ... 109 * 3.1.1 ... Financial Statement for Each Profit Center ... 110 * 3.1.2 ... Allocations in the General Ledger ... 111 * 3.1.3 ... Planning in the General Ledger ... 112 * 3.1.4 ... Enhancements for Planning with Enhancement Package 3 ... 116 * 3.1.5 ... Authorization Check for Profit Center ... 133 * 3.1.6 ... Evaluations ... 143 * 3.1.7 ... Assignment Monitor for Profit Centers ... 145 * 3.2 ... Reposting in Controlling ... 179 * 3.3 ... Online Posting of Follow-Up Costs ... 184 * 3.3.1 ... Accounts Receivable and Accounts Payable Accounting ... 184 * 3.3.2 ... Asset Accounting ... 186 * 3.4 ... Integration with Materials Management ... 189 * 3.4.1 ... Create Purchase Order ... 190 * 3.4.2 ... Post Goods Receipt ... 191 * 3.4.3 ... Check Incoming Invoice with Purchase Order Reference ... 191 * 3.4.4 ... Reduce and Post Vendor Invoice ... 193 * 3.4.5 ... Display Accounting Documents ... 194 * 3.5 ... Period-End Closing ... 197 * 3.5.1 ... Representative Ledger ... 198 * 3.5.2 ... Period Control with Three Periods ... 202 * 3.5.3 ... Periods for each General Ledger Account Assignment Object ... 203 * 3.6 ... Conclusion ... 204 * 4 ... Parallel Accounting IFRS on the Advance ... 205 * 4.1 ... Approaching Uniform Accounting Standards ... 205 * 4.2 ... Leading Valuation Approach ... 207 * 4.3 ... Basic Principles ... 208 * 4.4 ... Data Storage Location ... 209 * 4.4.1 ... Mapping via Parallel Accounts ... 209 * 4.4.2 ... Mapping via Parallel Company Codes ... 211 * 4.4.3 ... Mapping via Special Ledgers ... 212 * 4.4.4 ... Mapping via New General Ledger ... 213 * 4.4.5 ... Storage Location Conclusion ... 214 * 4.5 ... Fixed Assets ... 215 * 4.5.1 ... Valuation Variances Scenario ... 215 * 4.5.2 ... Asset Acquisition ... 215 * 4.5.3 ... Depreciation Posting Run ... 218 * 4.5.4 ... Asset Retirement with Revenue ... 219 * 4.5.5 ... Configuring Asset Accounting ... 221 * 4.6 ... Current Assets ... 225 * 4.6.1 ... Inventory Valuation ... 226 * 4.6.2 ... Receivables Valuation ... 234 * 4.6.3 ... Securities Valuation ... 243 * 4.7 ... Provisions ... 250 * 4.8 ... Posting and Clearing Specific to Ledger Groups (Enhancement Package 3) ... 257 * 4.8.1 ... Business Context ... 257 * 4.8.2 ... Indicators in the Master Record ... 258 * 4.8.3 ... Required Customizing Settings ... 259 * 4.8.4 ... Ledger Group-Specific Clearing for G/L Accounts Indicator Restrictions of Use ... 260 * 4.8.5 ... Process of Posting and Clearing Specific to Ledger Groups ... 261 * 4.8.6 ... Restriction Sample Accounts for Posting and Clearing Specific to Ledger Groups ... 284 * 4.9 ... Switching from G/L Accounts to Open Item Management ... 285 * 4.9.1 ... Customizing Settings ... 285 * 4.9.2 ... Sample Posting for the Switch to Open Item Management for G/L Accounts ... 290 * 4.10 ... Conclusion ... 291 * 5 ... Document Splitting ... 293 * 5.1 ... Reasons for Document Splitting ... 293 * 5.2 ... Concept ... 295 * 5.2.1 ... Active Split ... 296 * 5.2.2 ... Passive Split ... 297 * 5.2.3 ... Clearing Line Items ... 298 * 5.2.4 ... Data Concept ... 298 * 5.3 ... Examples of Applying Active and Passive Splits ... 299 * 5.3.1 ... Example of an Active Split ... 299 * 5.3.2 ... Simulating the General Ledger View ... 300 * 5.3.3 ... Document Simulation in Expert Mode ... 300 * 5.3.4 ... Example of a Passive Split ... 302 * 5.4 ... Configuration ... 304 * 5.4.1 ... Item Category ... 304 * 5.4.2 ... Business Transaction ... 306 * 5.4.3 ... Splitting Method ... 308 * 5.4.4 ... Definition of Document Splitting Characteristics ... 310 * 5.4.5 ... Default Account Assignment ... 311 * 5.4.6 ... Inheritance ... 315 * 5.4.7 ... Activation ... 319 * 5.4.8 ... Splitting Rules ... 321 * 5.5 ... Special G/L Transactions ... 332 * 5.6 ... Wizards for Customizing the Document Splitting ... 336 * 5.7 ... Periodic Processing ... 351 * 5.8 ... Conclusion ... 353 * 6 ... Migration ... 355 * 6.1 ... Activating New General Ledger ... 355 * 6.2 ... Migration Projects ... 360 * 6.2.1 ... Migration as a Discrete (Sub)Project ... 360 * 6.2.2 ... Other Independent Projects ... 363 * 6.3 ... The Phase Model of Migration ... 364 * 6.4 ... SAP Service for Migration ... 366 * 6.4.1 ... Content of the SAP General Ledger Migration Service ... 366 * 6.4.2 ... Migration Cockpit ... 367 * 6.4.3 ... SAP System Landscape ... 369 * 6.4.4 ... Remote Service Session for Scenario Validation ... 370 * 6.4.5 ... Remote Service Session for Test Validation ... 370 * 6.4.6 ... Delivery of Service Sessions ... 370 * 6.4.7 ... Booking the Service ... 372 * 6.5 ... Migration Scenarios ... 372 * 6.5.1 ... Overview of the Scenarios ... 373 * 6.5.2 ... Scenario 1 ... 374 * 6.5.3 ... Scenario 2 ... 375 * 6.5.4 ... Scenario 3 ... 376 * 6.5.5 ... Scenarios 4 and 5 ... 376 * 6.5.6 ... Scenario 6 ... 377 * 6.5.7 ... Scenario 7 ... 377 * 6.5.8 ... Looking Ahead ... 377 * 6.6 ... Migration Cockpit ... 378 * 6.6.1 ... Overview ... 379 * 6.6.2 ... Setup Phase ... 388 * 6.6.3 ... Checkup Phase ... 400 * 6.6.4 ... Preparation Phase ... 411 * 6.6.5 ... Migration Phase ... 413 * 6.6.6 ... Validation Phase ... 427 * 6.6.7 ... Activation Phase ... 430 * 6.7 ... Conclusion ... 431 * 7 ... Practical Reports ... 433 * 7.1 ... SAP Consulting ... 433 * 7.1.1 ... Parallel Accounting ... 433 * 7.1.2 ... Balance Sheets for Subaccount Assignments ... 434 * 7.1.3 ... Selected Aspects of Implementation ... 435 * 7.1.4 ... Additional Fields in New General Ledger ... 435 * 7.1.5 ... Using Document Splitting ... 436 * 7.1.6 ... Limits and Constraints on the Profit-Center Balance Sheet ... 437 * 7.1.7 ... Reporting vs. Operational Management ... 438 * 7.1.8 ... Further SAP Developments ... 438 * 7.1.9 ... Legacy Data Transfer ... 439 * 7.1.10 ... Lessons Learned ... 439 * 7.2 ... Accenture GmbH ... 440 * 7.2.1 ... Customer Description and Initial Situation ... 441 * 7.2.2 ... Challenges of the Project ... 441 * 7.2.3 ... Constitutional Project Decisions ... 441 * 7.2.4 ... Conclusion ... 449 * 7.3 ... Siemens IT Solutions and Services ... 450 * 7.3.1 ... Initial Situation ... 451 * 7.3.2 ... The New G/L Project ... 453 * 7.3.3 ... Success Factors and Lessons Learned from the Project ... 457 * 7.4 ... ConVista Consulting AG ... 459 * 7.4.1 ... Motivation and Implementation of Technical Requirements ... 460 * 7.4.2 ... Experiences Gained from the Projects ... 463 * 7.4.3 ... Experiences from Live Operation and Functional Aspects ... 464 * 7.4.4 ... Conclusion ... 466 * 7.5 ... J&M Management Consulting ... 466 * 7.5.1 ... Initial Situation ... 467 * 7.5.2 ... Updating Master Data ... 471 * 7.5.3 ... Configuring New General Ledger ... 471 * 7.5.4 ... Reporting ... 474 * 7.5.5 ... Migration Project ... 474 * 7.5.6 ... Conclusion ... 476 * 7.6 ... Conclusion ... 477 * ... Appendices ... 479 * A ... Frequently Asked Questions ... 479 * A.1 ... Technology ... 479 * A.2 ... Document Online Split ... 481 * A.3 ... Comparing Special Ledger with New General Ledger ... 483 * A.4 ... Parallel Financial Accounting and Ledgers ... 484 * A.5 ... Segment/Profit Center/Business Area/Customer Fields ... 485 * A.6 ... Integration ... 488 * A.7 ... Reporting ... 491 * A.8 ... Miscellaneous ... 493 * B ... The Authors ... 497 * ... Index ... 499