bok parallel accounting

8/9/2019 BOK Parallel Accounting

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Parallel Accounting

Introduction

The Central task of General Ledger Accounting is to provide a

comprehensive picture of external accounting and accounts.

Recording all business transactions (primary posting as ell assettlements from !nternal Accounting" in a softare system that is fully

integrated ith all the other operational areas of a company ensures

that the accounting data is alays complete and accurate.

#o a days many companies are re$uired to record and report their

various accounting transactions according to di%erent accounting

principles.

And many transactions are valued di%erently in di%erent accounting

principle. &or example'(i" epreciation(ii" &oreign Currency )aluation

&or *xample' +arallel accounting is necessary for an !ndian ,ubsidiary

of an American group. The !ndian subsidiary has to create &inancial

,tatements according to the accounting principles of the Group (such

as -, GAA+ or !&R," as ell as according to !ndian Commercial La

(!ndian GAA+".

ou can portray +arallel Accounting in your ,A+ ,ystem.

This enables you to perform valuations and closing preparations for aCompany Code according to the accounting principles of the group as

ell as other accounting principles such as Local accounting principles.

ou can use the folloing approaches to portray parallel accounting in

your ,A+ system.(i" +ortrayal using Additional accounts.(ii" +ortrayal using +arallel Ledgers.

Portrayal using Additional Accounts

ou can portray +arallel Accounting in your ,A+ system by creating

Additional accounts.

This means that you have di%erent account areas'

(i" /ne 0oint account area for postings that are same for both

accounting principles.


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(ii" /ne area ith speci1c accounts for each accounting

principle. *ach business transaction that are dependent on

the accounting principle leads to a di%erent posting2 hich is

posted to the corresponding speci1c account area.(iii" 3hen you perform closing according to a speci1c accounting

principle2 the common accounts and the speci1c accounts

for this accounting principles are evaluated. The additional account approach is particularly useful if the number of

valuation di%erences in your accounting principles is limited and a

large number of GL accounts is acceptable.

&inancial ,tatement )ersions' ou can create a separate 1nancial

statement version for each accounting principle. This means that hen

you create 1nancial statements2 you can select a separate structure for

each accounting principle.

Portrayal using Parallel Ledgers

Ledgers

A Ledger is a section of a database table.

A Ledger only contains those dimensions of the totals table that the

ledger is based on and that are re$uired for reporting.

A totals table is a database table in hich totals records are stored.

A totals table is used in General Ledger accounting as the basis for

your parallel ledgers.

,A+ delivers the totals table 4&AGL&L*5T6 for General Ledger

accounting in the standard system.

A Ledger uses dimensions from the totals table it is based on.

*ach dimension of the totals table represents a subset of the coding

block.

ou can also include customer 1elds in your ledgers.

To do this you have to add the customer 1eld to the coding block and

then include this 1eld in the totals table that the ledger is based on.

Path to Defne Ledgers

!n !7G8 &inancial Accounting (#e"88 &inancial Accounting Global ,ettings

(#e"888Ledgers8888 Ledgers88888 e1ne Ledger for General Ledger

Accounting


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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 hole.

ou can combine any number any number of ledgers in a ledger group.

!n this ay2 you can simplify the tasks in the individual functions andprocesses of General Ledger accounting.

&or *xample' ou can make a posting simultaneously in several

ledgers.

!n some General Ledger Accounting functions2 you can only specify a

Ledger group and not individual ledgers.

*ach ledger is also created automatically as a ledger group of the

same name.

ou can use these automatically created ledger groups to process an

individual ledger.

ou only have to create those ledger groups that you ant to process

together in a function using processing for several ledgers.

!f you do not enter a ledger group2 processing is performed

automatically for all ledgers.

ou therefore do not need to create a Ledger group for all ledgers.

Path to Defne Ledger Groups

In IMG > Financial Accounting (New)>> Financial Accounting Gloal

!ettings (New)>>> Ledgers>>>>Ledgers>>>>>Defne Ledger

Group"

3hen you de1ne each ledger group2 you have to designate one of the

assigned ledgers as the representative ledger for that Ledger Group.

The system uses the representative ledger to determine the posting

period during posting and to check hether the posting period is open.

The posting is then made to the assigned ledgers of the ledger groupusing the appropriate 1scal year variant for each individual ledger.

3hen the posting periods of the representative ledger are open2 the

postings are made to all other assigned ledgers even if their posting

periods are closed.

The folloing rules apply for the speci1cation of the representative

ledger of a ledger group'


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(i" !f the Ledger group has a leading ledger2 the leading ledger

must be designated as the representative ledger.(ii" !f the Ledger group does not have a leading ledger2 you must

designate one of the assigned ledgers as the representative

ledger. uring posting2 the system uses the &iscal year

variant of the Company Code to check hether the selection

is correct.(iii" !f one of the ledgers in the ledger group has the same &iscal

year variant as that of the Company code2 you must

designate that ledger as the representative ledger.(iv" !f all ledgers in the ledger group have a di%erent 1scal year

variant to that of the Company Code2 you can designate any

ledger as the representative ledger.

Thus2 you may be unable to use the same ledger group for all

Company Codes. !n that case2 you have to create separate ledger groups and in each

one designate a di%erent ledger as the representative ledger.Ledgers

#e General Ledger (#e GL" has all the functions of the classic

General Ledger but has been enhanced ith special ledger functions to

create greater 9exibility.

!n General Ledger Accounting2 you can perform parallel accounting by

running several parallel ledgers (general ledgers" for di%erent

accounting principles.

uring posting2 you can post data to all ledgers2 to a speci1ed

selection of ledgers ot to a single ledger.

Leading Ledger

ou must designate one ledger as the leading ledger.

!n #e General Ledger2 there is one Leading Ledger for each client that

is valid for all Company Codes.

This Leading Ledger is integrated ith all subsidiary ledgers and isupdated in all company codes.

This means that it is automatically assigned to all Company Codes.

!n each company code2 the leading ledger receives exactly the same

settings that apply to that company code2 the currencies2 the 1scal

year variant and the variant of the posting periods.

An important decision to make in hich accounting standard to use in

the Leading Ledger.


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This assignment cannot be deactivated once it has been de1ned.

The Leading Ledger is based on the same accounting principle as that

of the consolidated 1nancial statements or group.

!f you use the account approach for parallel accounting2 you post all

data to the leading ledger.

,A+ provides the Leading Ledger 4:L6 as standard.

That is in our example2 the American Group ill create a Ledger asLeading Ledger ith the -, GAA+ or !&R, as the accounting principle.

!t is a base ledger hich updates the cost center and consolidation.

ou can de1ne only one Ledger as the Leading Ledger' ,A+ provides

the Leading Ledger 4:L6.

The leading ledger is integrated ith all subsidiary ledgers.

/nly the values from the leading ledger are sent to C/.

The Leading Ledger in Asset Accounting (epreciation Area :;" must

be posted to the Leading Ledger. Leading Ledger uses the local currencies assigned to the Company

Codes.

Leading Ledger uses the GL total table< &AGL&L*5T.

Non Leading Ledger

#o for any other accounting principle non leading ledger can be

de1ned in the system hich in turn can be used by the Company Code

for the parallel accounting and reporting.

The non leading ledger is parallel to the Leading Ledger.

They can be based on a local accounting principle for example ,ay in

our example the !ndian ,ubsidiary creates a #on Leading Ledger in

!ndian GAA+ as accounting principle.

ou have to activate a #on Leading Ledger for the individual Company

Code.

#on Leading Ledger can have di%erent &iscal ear )ariant and di%erent

+osting +eriod )ariant per Company Code to the Leading Ledger of this

Company Code.

Path to Defne and Acti#ate Non Leading Ledger

In IMG> Financial Accounting (New)>>Financial Accounting Gloal

!ettings (New)>>> Ledgers>>>>Ledger>>>>> Defne and

Acti#ate Non Leading Ledger"


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The second and third currency of the non leading ledger must be a

currency that is managed as second or third currency in the respective

Company Code.

=oever2 you do not have to have a second and third currency in the

non' leading ledger2 these are optional.Parallel $urrency

!n &inancial Accounting2 in addition to the Local currency you cande1ne a maximum of > parallel currencies for your Company Code in a

Ledger.

,ince the settings of the Company Code are transferred for the Leading

Ledger2 your Leading Ledger is also managed in this parallel currencies

as ell as the local curreny in this case.

ou can only specify the parallel local currencies speci1ed in the

Leading Ledger as parallel currencies in the #on Leading Ledgers.

ou can use various currency types for the parallel currencies. oude1ne the currency of a currency type hen you de1ne the

organi?ational units.(i) Group Currency' ou de1ne the group currency hen you

de1ne your client.(ii) Global Company Currency' ou de1ne the Global Company

Currency2 hen you de1ne the company assigned to the

Company Code.(iii) =ard Currency' ou de1ne the hard currency hen you de1ne

the country assigned to your Company Code.(i#) !ndex @ased Currency' ou de1ne the !ndex @ased Currency

hen you de1ne the country to hich your Company Code is

assigned.

!f you manage your ledger in parallel currencies2 this has the folloing

e%ects'(i" uring the posting the amounts are also saved in the parallel

currencies. The amounts are translated automatically2 but you

can also enter them manually.(ii" Transaction 1gures for the GL accounts are also updated in

the parallel currencies.(iii" *xchange rate di%erences during clearing also appear in the

parallel currencies.(iv" ou can also perform a foreign currency valuation in the

parallel currencies.

Non Leading Ledger


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#on Leading ledgers are activated by Company Code.

ou can de1ne additional currencies that deviate from those used by

the Leading Ledger.

As a >ndand rdCurrency of a non' leading ledger2 you may only use

currency types that you have already assigned to the relevant

Company Code for the Leading Ledger.

ou can de1ne a &iscal ear )ariant that di%ers from the Leading

Ledger if you donBt specify a &iscal ear )ariant2 the &) of the

Company Code is automatically used.

ou can also de1ne a +osting +eriod )ariant that di%ers from the

Leading Ledger.

,eparate ocument Types and #umber Ranges can be de1ned for #on

Leading Ledgers by users2 to ensure continuity in Ledger numbering.

#on Leading Ledgers updates the +ro1t Centers2 segments.

The #on' Leading ledgers are used as parallel ledgers together iththe Leading Ledger. This can be used to apply di%erent accounting

standards2 such as !A,!&R, or !ndian GAA+.!cenarios

The ,cenario combines customising settings from di%erent business

vies.

&or the Ledger2 you de1ne hich 1elds are 1lled ith posting date from

other application components.

*ach business vie speci1es hich posting data is transferred from

di%erent application components is General Ledger Accounting such as

Cost Center -pdate or +ro1t Center -pdate.

ou assign the desired scenarios to your ledger.

!f you use ocument ,plitting2 you de1ne the 1elds of a ,cenario that

you have assigned to the Ledger as ocument ,plitting

CharactersticsD

Path to Defne !cenarios and $usto%er Fields to Ledgers

In IMG >Financial Accounting (New)>>Financial Accounting Gloal

!ettings (New)>>> Ledgers>>>>Ledger>>>>> Assign !cenarios

and $usto%er Fields to Ledgers"

ou cannot de1ne your on scenarios.

A Ledger (alays the Leading Ledger" can be assigned one or more

scenarios2 or even all six (E" at once.


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ou do not necessarily have to de1ne non Leading Ledgers for using

multiple ,cenarios.

And thus it means scenarios do not have to be assigned to non'

leading ledger.

#ote' ou do not need a ledger for each scenario.

Parallel Ledger

,A+ recommends that you implement this parallel ledger approach if

the number of General Ledger accounts ould be unmanageable for

the scenarios using additional accounts.

Advantages'

(i" ou manage a separate ledger for each accounting

principle.(ii" ou can use standard reporting for the leading ledger and

all other parallel ledgers.(iii" 3ith this solution scenario2 you can portray di%erent &iscal

ear )ariants.(iv" The number of General Ledger accounts is manageable.

isadvantages'

(i" The use of parallel ledgers increases the volume of data.

bok parallel accounting

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