new gl and industrysolutions

New General Ledger Accountingand Industry Solutions

Solution Management ERP FinancialsSAP AG

New General Ledger Accounting and IndustrySolutions: Topics

New General Ledger Accounting: Advantages and Concept

New General Ledger Accounting always offers advantages

Same range of functions as in classic General Ledger Accounting - and more

Features of New General Ledger AccountingParallel Accounting (Account Approach, Ledger Approach in New General LedgerAccounting)Profit Center and Segment ReportingFinancial Statements Using Industry-Specific Characteristics

Use of industry solutions based on component FI-CA (supported only fromSAP ERP 6.0 onward)

FI-CA and Online Document Splitting in New General Ledger Accounting

Overview: New General Ledger Accounting and Industry Solutions

Local GAAP

US GAAPxxx xxx xxx

Advantages of New General LedgerAccounting:

Fin. & Mgmt Accounting in one environmentExtensibility for customer fieldsSupport of internat. reporting requirementsSupport of parallel accountingFast CloseGreater transparencyReduced TCO

Document EntryDebit

100

Acct / Segmt

-------------------- A---------- B

Credit

6040

OnlineDocumentSplitting

IFRS

Multidimensional: Zero BalanceDebit

6040

Acct / Segmt

---------- A---------- B---------- A---------- B

Credit

6040

xxx xxx xxx xxx xxx xxx

Multidimensional

Multiledger Update

Multiple

Valuations

New General Ledger Accounting – Advantagesand Concept

New General Ledger Accounting Always OffersAdvantages

Real-time integration of Controlling with New General Ledger Accounting foractual data. This eliminates the need for periodic reconciliation activities.

The following key fields are contained in the totals record of New GeneralLedger Accounting:

The fields Trading Partner and Consolidation Transaction Type. These fields reduce thereconciliation effort required in preparing consolidation.The Functional Area field is delivered as standard and can be used to set up a profit and lossstatement in accordance with cost of sales accounting.With the report/report interface, you can use the drilldown functions to switch from the FIreport to the CO report. The Cost Element field can be used as an additional characteristic forevaluations and is filled automatically.

Same Range of Functions as in ClassicGeneral Ledger Accounting – And More

All SAP industry solutions can be used in combination with New GeneralLedger Accounting if the functions correspond to those of classic GeneralLedger Accounting.

You can additionally deploy the following significant functions in New GeneralLedger Accounting:

Parallel accounting using parallel ledgers

Financial statements for additional dimensions such as profit center or segment

Financial statements for industry-specific dimensions such as grant or fund(Grant and fund are new standard fields from rel. ERP2005 onward)

To find out how you can do this, see the next slides.

Parallel Accounting

Companies are increasingly being required to produce consolidated financialstatements for different accounting principles (IFRS, US GAAP, or local legalrequirements such as the German HGB).

In SAP ERP, two techniques can be used to portray parallel accounting:the ledger approach orthe account approach.

SAP considers both approaches as equally valid. To find out which approach isappropriate for you, see SAP Note 779251.

In general, both approaches are available in New General Ledger Accounting.However, the ledger approach cannot be used in certain industries. To find outwhich ones, see the slide entitled "New General Ledger Accounting Features +Specific Industry Solutions" in this presentation.

Reporting on Profit Center, Segment, andBusiness Area

IFRS and US GAAP both require segment reporting (balance sheet and profit and lossstatement or just the profit and loss statement). Segment reporting provides insights intothe business areas or subareas of a company.

Customers who have been using the business area in classic General Ledger Accountingcan continue to use the business area in the same way as they are used to doing.

Note that, with the standard settings for New General Ledger Accounting, the segment isderived from the profit center.

In general, the industry solution provides New General Ledger Accounting with the profitcenter with the corresponding level of completeness. The segment is derived on the basisof the profit center information. However, this is not the case in certain industries. To findout which ones, see the slide entitled "New General Ledger Accounting Features +Specific Industry Solutions" in this presentation.

The industry solution supplies New GL with the account assignment segment so that abalance sheet can be produced for each segment in New General Ledger Accounting. Forinformation on how to set up segment derivation in the industry solution, see thedocumentation on the relevant industry solution.

For the creation of the balance sheet, settings need to be made in Customizing for OnlineDocument Splitting.

Financial Statements Using Industry-SpecificCharacteristics

In some industries, it is necessary to produce financial statements that apply characteristicsspecific to those industries. SAP provides standard fields for this, such as grant and fund (IBUPublic Sector). Moreover, you may want to use additional customer fields.If you use the fields delivered by SAP, they are transferred correctly to New General LedgerAccounting so that you can create the financial statements.If customer fields are used, you need to ensure that they are filled correctly when a documentis created.Note that, to create a balance sheet for characteristics selected in addition to the companycode, settings need to be made in Customizing for Online Document Splitting.For detailed information on the Online Document Splitting function, see SAP ServiceMarketplace at https://service.sap.com/GL under General Ledger > Media Library.

Use of FI-CA

Many industry solutions use the component FI-CAFI-CA is a subledger in Financial Accounting capable of automatically processing a largenumber of postings.Here, the receivables and payables relating to a business partner in FI-CA are posted to acontract account.The posting information relevant to General Ledger Accounting is transferred periodically inaggregated form to General Ledger Accounting.Note: SAP offers a version of FI-CA from SAP ERP 6.0 onward!

Industry Solutions with FI-CA

Financial ServicesIBU Banking (Leasing, Loans)IBU Insurance (FS-CD)

Public ServicesIBU Healthcare & Higher EducationIBU Public Sector (PS-CD)

Service IndustriesIBU MediaIBU TelecommunicationsIBU UtilitiesIBU Travel and Transportation

FI-CA and Online Document Splitting in NewGeneral Ledger Accounting

FI-CAUses New General Ledger Accounting in SAP ERP 6.0 in the same way as classic GeneralLedger Accounting.Supports the account assignment Segment (only in combination with NewGL!).

Enters corresponding default segments in the tax items and bank items(Customizing)Planned for EhP4: Tax items may be split according to the segments in the revenue items.Each item is assigned to one segment only. (See also the documentation on theFI-CA component.)

Planned for EhP4: Uses profit centers in the receivable line items

When FI-CA is used, online document splitting is not performed in New GeneralLedger Accounting; instead, clearing entries are only created for the additionalbalancing units.

Usage of the following features is either not possible or restricted:Balance sheet at profit center level is restricted, as posting to bank accounts won’t be splitaccording to the Profit centers of the cleared items. Profit center assignment for receivables,payables (direct assignment) and tax items (automatic split) is possibleBalance sheet at segment level (restricted usage)

For more information, see the slide entitled "New General Ledger Accounting Featuresand Specific Industry Solutions" in this presentation.

Combinations of Characteristics

When filled in combination with other characteristics such as Profit Center andSegment, the Business Area characteristic is treated differently in thedocuments.

For example, the business area is generally never assigned in the tax items. The field isalways empty.Planned for EhP4: Business area is assigned to tax items if and only if tax items are splitaccording to the account assignments of the revenue items.The segment, on the other hand, can be assigned in the tax items.If only the characteristic Business Area is transferred (such as in the revenue items), onlinedocument splitting can subsequently enhance the tax item with the business area.If, however, there is a combination of characteristics, online document splitting cannotsubsequently enhance the tax item with the business area. In this case, the balance sheet forthe business area is incomplete.In general: If tax items are split, GSBER, PRCTR, SEGMENT are inherited from the revenueitems, if tax items aren’t split: GSBER and PRCTR are initial and a default SEGMENT may beassigned

New General Ledger Accounting Features andSpecific Industry Solutions

New GL Accounting Features: Industry Solutions / ComponentsPS-M FI-CA JVA CML TRM

Parallel ledgers YES YES 3) YES 5) NO YES 7)

P&L statement at level of

Profit center YES YES YES YES YES 8)

Segment YES YES YES YES YES 8)

Business area YES YES YES YES YES

Industry-spec. acct assignments YES 1) YES NO NO YES 9)

Balance sheet at level of

Profit center YES RST4) NO 6) NO YES 8)

Segment YES RST4) NO 6) NO YES 8)

Business area YES RST4) NO 6) NO YES

Industry-spec. acct assignments YES 2) YES NO NO YES 8)

For a key to the abbreviations and footnotes, see the notes to this slide and the next slide.

New General Ledger Accounting Features andSpecific Industry Solutions: Key to Abbreviations

Footnotes to the previous slide:From SAP ERP 6.0, table template for the dimensions Fund, Grant, Functional AreaDoes not apply to the dimension Functional AreaPossible as of SAP ERP 6.0 Enhancement Package 2. (See Rel. Note: FICA_602_Closop)

You can use the ledger group in the foreign currency valuation programYou can add items with ledger group to standard postings via the FI-CA event-techniqueYou can use the ledger group in the mode of customer-specific posting-programs.

Profit center : No profit center split for bank itemsSegment: Restricted, only default segment in tax items (if no split is active) and bank itemsBusiness Area: Tax items are only assigned with business area if split is active.JVA postings always update all ledgers in New General Ledger Accounting. Ledger-specificpostings from JVA are not possible. JVA is integrated with the leading ledger in New GeneralLedger Accounting, which means in particular that only valuation postings in the leadingledger are posted to JVA.Due to the different document splitting logic in New General Ledger Accounting and JVA,reconciliation between the two is only possible at the level of the company code/account, butnot at the account assignment level (profit center/segment/business area). Note: New GL docsplit together with JVA split is not supported.If TRM is used in combination with CML, derivation occurs in accordance with the accountingprinciples applied.Derivation via BAdI or Controlling object.Derivation via BAdI

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