1SAP AG

Integration and Transition to New GL

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The New GL in mySAP ERP 2004

When will the GL arrive?

Is it still possible to use the old GL?

Can we use both?

Does everything look different in the new GL?

How can we migrate from the old to the new GL?

??

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GL in ERP 2004

For the time being, the current FI remains unchanged after a transition from R/3 to ERP.

At client level, the new GL can be activated in Customizing under:

Financial Accounting (Classic) > Financial Accounting Global Settings > Activate New General Ledger Accounting.

After the conclusion of the ramp-up phase, the new GL will automatically be active for new clients (a final decision is yet to be made)

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GL in ERP 2004 Existing Customers

If the customer decides to use the new GL, then he can activate it at client level.

Once new GL has been activated, the new IMG and the new transactions are added to the application menu.

The IMG and the application menu are valid across the whole system. That is why the IMG and transactions from the previous GL can only be hidden if the new GL is active across the system. A hide transaction is available.

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New GL in ERP 2004 IMG FI

The IMG has been revised completely with the objective of reducing redundancy and creating more transparency

The most important new functions affect

Book definition Settings for settlement Allocations Planning Online reconciliation CO- FIIf the previous GL is still active in other clients, then the new IMG for Financial Accounting is added

GL IMG

CO IMG

PCA IMG

SL IMG

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If the new GL is active on a system-wide basis, then the application menu has been switched over to the new General Ledger. This means:

The basic structure of the application menu remains intact Posting transactions are posted to the new GL The ledger group is displayed in the respective transactions Reports read the new GL Functions no longer used are no longer offered

(e.g. SAPF180, SAPF181)

New functions are available (e.g. profit center maintenance,allocation, planning)

If the old and the new GL are used, then all transactions are available in the application menu

New GL in ERP 2004 Application Menu FI

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Leading Ledger Additional Ledger

In GL one ledger is assigned the role of the leading ledger. Group accounting is usually mapped in this ledger.

All company codes are automatically assigned to the leading ledger (cannot be deactivated).

Parallel reporting can still be mapped via additional accounts. In this case there is exactly one ledger in the general ledger, theleading ledger.

For parallel reporting in the new GL you can also add additionalledgers to the general ledger (not in SL as for R/3 Enterprise).

The leading area of asset accounting (area 01) must be posted tothe leading ledger.

Controlling must also be posted to the leading ledger.

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Leading Ledger Integration

AAGL

IAS leading

HGB

US-GAAP

CO - IAS

01 IAS.. US GAAP.. HGB

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Data Structures of the new GL

BSEG

BKPF

Additional fields

RLDNR LDGRP

SEGMENT

Documentheader

Line items

Documents that are relevant for the leading ledger

BKPF/BSEG remain. All documents that are relevant for the leading ledger are written in

BKPF/BSEG.

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Data Structures of the new GL II

BSEG

BKPF

Fields like BSEG Documents that are notrelevant for the leading ledgerBSEG_ADD

BSEG_ADD is only filled, if additional ledgers are used for parallel reporting!

Documents without valuation differences are posted to all ledgers. They are also relevant for the leading ledger and are written to BSEG.

Documents that are only posted in one or more additional ledgers are only written to BSEG_ADD.

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Data Structures of the new GL III

Document header.

Un-split line item.

Un-split line item (only for additional ledger).

Split line item.

Split totals. Replaces GLT0.

BSEG

BKPF

BSEG_ADD

FAGLFLEXA

FAGLFLEXT

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Data Structures of the new GL

BKPF is still used for the document header.

All documents affecting the leading ledger are written in BSEG.

All document that only affect additional ledgers are written in BSEG_ADD.

Open items remain unchanged (BSIK, BSIS, BSID, BSAK, BSAS, BSAD).

GLT0 is omitted.

FAGLFLEXA/FAGLFLEXT are written for the split line items and the split totals.

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Structure of the new Data Structures

The existing documents (BKPF/BSEG) are used as the basis for the new tables (FAGLFLEXA, FAGLFLEXT).

During the migration, document splitting is carried out according to Customizing.

In FAGLFLEXA/FAGLFLEXT, the data is stored significantly leaner than in BSEG but is split.

The complete document in the General Ledger view results from BKPF/BSEG and FAGLFLEXA.

At first, BSEG_ADD is not filled as there is no data that is relevant for the General Ledger at the time of migration.

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Migration Procedure

The required Customizing and the activation of the new GL is transported to the live system.

A transfer report (RGURECGLFLEX) generates the new data. This means: The open items are unchanged (BSIK..). The documents are unchanged (BKPF/BSEG). The documents are used to generate FAGLFLEXA and FAGLFLEXT.

For the opening balance sheet, the initial positions are transferred to FAGLFLEXT via a roll-up from GLT0.

The totals records of earlier previous years can also be transferred to FAGLFLEXT for reporting by using a roll-up from GLT0.

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Migration Parallel Reporting

During the migration, the account solution is automatically transferred to the new data structures.

It wont be automatically possible to implement parallel values from additional accounts in additional ledgers, i.e. a migration of the account solution to a ledger solution. (customer solution)

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Migration Document Splitting

During the data transfer, documents are automatically split according to the Customizing settings.

The selection time frame for the data transfer must be selected in such a way that it includes all open items.

If required, the document chains are analyzed for document splitting.

Old documents cannot be subsequently split according to new account assignment (not included in BSEG). Complete balance sheets according to new characteristics are thus only available after a transitional time period.

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Transition Scenario for Reporting

When the new GL is active, customers requiring a very high levelof security can choose to continue updating GLT0 for a transitional period.

A ledger comparison at totals level is available for comparing GLT0/FAGLFLEXT (RGUCOMP4).

FAGLFLEXA

FAGLFLEXT

GLT0

RWIN

WriteGLT0

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For a single client, the switch read GLT0 is used to control from where the data is to be read (in a function module that is called when the logical database is read)

This setting can be overwritten by means of a user parameter (FAGL_READ_GLT0_USER)

You can thus create parallel reports for comparative purposes

Reporting in the Transitional Scenario

FAGLFLEXT

GLT0Existing reports

ReadGLT0?

RFBILA, balance sheet, drilldown reporting.

New reports

Balance sheet, drilldown reporting

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Integration GL - CO

One valuation is maintained in CO.

The reconciliation ledger is omitted for the new GL.

CO can be posted through to the new GL online.

The leading ledger is always supplied with data.

You can use Customizing to specify for each company code, which CO postings post to which ledgers: Postings, in which the company code, profit center, business area,

functional area or segment changes. Postings determined by a Boolean rule. Postings specified by means of a BADI.

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CO DocumentPC2000 PPrctr ... 10h 1000$ secondary cost element

GL DocumentGL account PC2000 PPrctr... 1000 $

The CO document is posted through online

Group 1000Group 1000

Cost center 1000

PrCtrPrCtr 20002000

10h at 100$ Cost center 2000

PrCtrPrCtr 1000 1000

Online Through-Posting e.g. at Profit Center Level

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Changes to the Data Structures of CO

The CO totals tables have been enhanced with the fields functional area, company code and segment.

During allocations in CO, the clearing to the sender for functional area and segment happens in accordance with the characteristics, i.e. with the posted functional area or segment. The functional area and segment of the receiver are derived anew.

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Profit Center and Segment

As before, the mapping of internal areas of responsibility can be done by means of profit centers.

The derivation of profit center and partner profit center is carried out in preceding applications (e.g. MM) or in RWIN or by clearly assigning a CO object to a profit center. This corresponds to the previous R/3 logic.

The segment is made available as a new organizational unit to map the legal requirements with regards to segment reporting.

The segment is derived by clearly assigning a profit center to asegment or via BadI (Abap- Coding or substitution).

In mySAP ERP 2004 segments can only be used together with profit centers. In FI- postings, where profit center information is not relevant, segment can be determined by BAdI or entered manually.

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Profit Center Accounting and Segment Reporting in the new GL

The profit center and/or segment as well as the corresponding partner information are managed as characteristics in the new GL.

The following are optional for the profit center and/or segment: Document splitting Zero balance

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Transitional Scenario for Profit Center Accounting

It is possible to continue the previous PCA in parallel to the new GL for a transitional period GLPCT (old) does not access split documents. SAPF180 may still be used temporarily to transfer receivables and

payables SAPF181 cannot be used any longer. A valuation with updates in the

original document is also not supported anymore. Exchange rate differences and discounts thus cannot be transferred to GLPCT.

GLPCT will not be developed further. We do not recommend permanent parallel operation!

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Motivation of Segment Reporting

Segment reporting aims:

to give detailed insight into different business activities of a diversified company

to offer information about the general environment

in order to

better understand the economical performance better forecast the potential of revenue and financial back-up better anticipate risks and opportunities and more...

of the respective company.

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Definition of Segments (IAS / US-GAAP)

IAS distinguishes between business and geographic segments.A business segment represents a partial activity of the company that delivers a product or a service with risks and revenues that differs from those of other business segments.

A geographic segment informs about risks and revenues that differs from other geographic segments in terms of economic, political ... etc reasons.

According to US-GAAP a segment is a part of the company which leads to expenses and revenues and which underlies to its own profitability and allocation of resources.

IAS and US-GAAP: A segment has to be reported if external revenues achieve 10% of the total revenues.

and more.....

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In mySAP ERP 2004 segments can only be used together with profit centers. In FI- postings, where profit center information is not relevant, segment can be determined by BAdI or entered manually.

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New GL: Derivation of Segment from Profit Center

Totals per: Ledger CCode Segment etc...

Profit Center

Derivation of segment

Sales:Customer order position

Mat.- Management and Production:Controlling object or

material master

GL- Postings without PC-info:a) Manual entry of segment orb) BADI (Coding or Substitution) orc) Default Segment

Controlling:CO-objects

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Functionality for the Field Segment

UI: Journal entry (derivation, manual entry, BADI) Standard Reporting:

Balance and P&L-sheet Display balances

Document Split : Projection and / or inheritance Balance zero for each document

Periodic activities: Revaluation, regrouping and balance carry forward keep the segment Allocation per segment

Planning on segment ALE:

Segment information in FI- documents are transferred

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How to migrate from classic to New GL?

SAP is working on a hand book for consultants.

Availability is planned for mid of 2005.

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Additional Aspects of Segment

Authorization object for segment F_FAGL_SEG (Reporting). Remark:No authority check for posting and displaying documents in the standard.If required a BAdI is available.

The field business area will be still available for customers upgrading from R/3 and is to be considered as any other account assignment field.New customers should use the segment field.

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Integration GL AA

As before, the depreciation areas of AA can be directed to different accounts in GL.

If a parallel valuation in GL is depicted by means of additionalledgers in the general ledger, this means for AA:

A ledger group is assigned to a depreciation area. The leading ledger must be assigned to area 01. The beginning and end of the fiscal year in asset accounting must be identical to the ledger in general ledger accounting because the depreciation values in the G/L accounts would otherwise be mapped incorrectly.

An additional ledger is supplied via a derived area. This ledger does not keep any data in the data basis but calculates it at the time of the APC postings.

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Fixed asset transactions in FI-AA affect all ledgers of the company code in new GL. FI-AA entries in specific depreciation areas concerning specific GAAPs (Ledgers) are posted via delta depreciation area into the respective ledger.

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Parallel Reporting via additional Ledgers Integration GL AA

AAGL

IAS leading

US GAAP

01 IAS30 US GAAP60 30 - 01

Depreciation Ledger LedgerArea Group

01 A IAS30 B US GAAP6030 - 01 B US GAAP

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Integrating FI-AA and FI-GL: Depreciation

As before, the posting of depreciations can be made to several accounts per depreciation area.

If parallel ledgers are to be mapped in GL, then the depreciation is posted to the ledger assigned to the depreciation area:

The depreciation run posts the depreciation for area 01 to the IAS ledger and the depreciation for area 30 to the US GAAP ledger.

Depreciation Ledger LedgerArea Group

01 A IAS30 B US GAAP6030 - 01 B US GAAP

Example

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Integrating FI-AA and FI-GL: Asset Transactions

As before, postings of asset transactions can be made to different accounts per depreciation area.

If parallel ledgers are to be depicted in GL, then the asset transactions from the leading area (01) are posted to all ledgers. In general, asset transactions are posted without a ledger group. In doing so, asset acquisitions /retirements are posted with posting

key 70/75 (until now they were pure G/L account postings). If the valuation of an asset acquisition is different in an additional

ledger, then a manual posting must be made for this area. During APC posting, the derived area is calculated and the

difference is posted to the additional ledger.

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Integrating FI-AA and FI-GL: Asset Transactions Example

AAIAS leading1000 USD

US GAAP1000 USD (1)200 USD (3)

01 IAS 1000 USD (1)30 US GAAP 1000 USD (1)

60 30 - 01

Example: Integrated asset acquisition 1000 USD plus 200 USD shipment costs

(1) Asset acquisition(2) Manuel capitalization of additional costs in area 30(3) APC posting

200 USD (2)

(1)

(1)

(3)

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Example: Asset retirement with revenue with different accumulated depreciation values 500 and 400 in depreciation areas 01 and 30.The posting from area 01 is updated in all ledgers of New GL. That is that the IAS values( APC, value adjustment, loss or gain) are updated in local Ledger B too.In order to simplify the example, only the postings of the loss lines (200) are displayed on the

slide as an example.

Via the delta area 60 an automatic correction posting for APC-, value adjustment-, loss- and gain-lines are performed.

After the the delta posting (-100) ledger B contains the complete values according to local GAAP and can be reconciled with the values of depreciation area 30.

Note: Having the account solution in stead of the ledger solution in place, full posting of all values to different accounts is performed. In this scenario a delta area is not necessary.

During Asset retirement as well as in all asset transactions the update of the additional ledger B is not performed directly from area 30. Update is always performed via a delta area (60).

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Cust./ Rec. 300 ALL (A a.B)Revenue -300

01 /IAS APC -1000 A / IASVal. adj. 500 (acc. depr. =500)Loss 200 Loss 200Revenue 300

30 /loc. AHK -1000 B / local GAAPVal. adj. 600 (acc. depr.=400) Loss 200Loss 100 Delta posting -100Revenue 300 Total Loss 100

60 (Delta): 30-01 100 200 = -100

Integration FI-AA to New GL : Asset Retirement with Revenue

Postings asset retirement Affected Ledgers

Delta p

osting

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Integration FI-AA - GL CO (I)

Scenario 1 (Standard Scenario)Depreciation area Ledger (general ledger) CO 01 IAS A X

30 US GAAP B - (in spite ofcost element)

Area 01 posts to the leading ledger and to CO. The leading ledger is thus integrated with all subsidiary ledgers.

Areas 01 and 30 post to the same accounts. Corresponding cost elements have been created to transfer the

depreciations to CO.

Documents for area 30 can either contain a cost center or an order. They are only posted to an additional ledger, not to CO. This is controlled in asset accounting Customizing. If no CO account assignment is provided, a configurable error message

is output. This control then applies to all postings via RWIN, i.e. not only for

postings from asset accounting.

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Integration FI-AA - GL CO (II)

Scenario 2 (Germany/Austria)Depreciation area Ledger (general ledger) CO Cost element01 HGB A - -

20 cost acc. A X X

30 US GAAP B - -

Most German customers today maintain the HGB view in area 01 of asset accounting. No cost types are stored in the account determination for depreciations for this area. Pure P&L accounts are stored instead. Depreciations for area 01 are thus not updated in CO.

Attention: Mixture of ledger and account solution (area 20 has a different account determination for depreciations).

In addition, these customers maintain a so-called cost accounting area (referred to as area 20 here). The account determination is different from that for area 01. Cost types are found for this area. This data is thus automatically updated in the leading ledger of the new general ledger (this must be set up accordingly) as well as in CO.

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Integration FI-AA - GL CO (III)

Scenario 3 (Germany/Austria)

Depreciation area Ledger (general ledger) CO Cost element

01 HGB A - X

20 IAS C X X

30 US GAAP B - X

Some customers want to upgrade the cost accounting depreciation area (20) to a full IAS area and, in doing so, they want to use the same accounts as in area 01.

The data from area 20 is to be posted to CO. This setting is currently not possible in the standard, because the leading ledger of the new GL is integrated with all subsidiary ledgers by default. In order to enable a customer to use this scenario, a BADI is provided in the CO interface.

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Flashback - AA in R/3 Enterprise and the Ledger Solution

For Enterprise, it was made possible to post additional depreciation areas to additional special ledgers via an accounting principle.

As customer and vendor documents are only posted once (OI administration, payment), this resulted in the following situation:

Valuation differences on the expense or revenue side (e.g. for asset retirements) had to be either filtered out during posting to an SL or corrected in SL.

We do not wish to use this procedure for the new General Ledger.

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Integrating GL with CFM and Consolidation

CFM As in R/3, the valuation areas of CFM are assigned to an accounting

principle. The accounting principle is assigned to a ledger group. Here, one

has to consider that the accounting principle that is assigned to the operational valuation area 001 points to a ledger group that contains the leading ledger.

In CFM a separate document is created for all postings per valuation area. This document is then transferred to RWIN. In doing so, anopen item is only created for operational area 001. The postings in the parallel areas may only contain the corresponding reconciliation account.

If charges for securities purchases are treated differently for two accounting principles, then the position and cost lines must have identical additional account assignments as the splitter would otherwise create incorrect values for one of the views.

SEM-BCS (BW-based) The SEM-BCS is supplied by the BW extractors of the new GL.

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Connection EC-CS

SAP recommends supplying the EC-CS with data from the new General Ledger by means of a roll-up. In this scenario, it is also possible to carry out a profit center consolidation in EC-CS.

It is also possible to supply the EC-CS tables ECMCA/ECMCT with data in the context of online through posting. The tables are always updated when the leader ledger is posted to in the general ledger. User-defined fields can also be transferred during online through postings. In order to do so, the customer has to maintain the 0C03 fields transfer accordingly. A corresponding field transfer could also be used to transfer the profit center and partner profit center fields to the corresponding Z fields in EC-CS. Note: Hence, a profit center consolidation cannot be carried out; merely a data drill-down according to profit centers is possible.

RFBILA00 still exists as well. If the new general ledger is active, then this report automatically reads the data from the new totals table (FAGLFLEXT). However, it then aggregates this data at GLT0 level. At the moment GLT3 would have to be updated as well to create a data extract for consolidation. In addition, we still have to clarify whether GLT0 should be accessed directly in EC-CS for this scenario. One of the objectives of the new General Ledger is to avoid database redundancies and the corresponding reconciliation work. Hence we do not recommend using this scenario. You should use the significantly more flexible roll-up instead.

As usual, the settings for the data integration can be made in EC-CS via transaction OCCI.

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Integrating GL with EC-CS and SEM-BCS (R/3-based)

EC-CS and SEM-BCS (R/3-based) Documents that affect the leading ledger can be transferred to Consolidation,

online. User-defined fields can also be transferred (maintenance of the field transfer 0C03). Profit center and partner profit center can be transferred with the user-defined

fields of EC-CS. When this is done, only a drill-down by profit centers is possible, but no complete EC-CS consolidation is possible. Reason: Elimination logic only exists for cons. unit / Partner cons. unit fields, but not for user-defined fields.

The data transfer by means of periodic extracts from R/3 and R/3 Enterprise was based on GLT3 and does no longer make sense in the new GL. Reason: The new GL aims to do without tables like GLT3.

In the following cases the data has to be transferred to Consolidation via a roll-up: Transfer of profit center and partner profit center for complete profit center

consolidation (company / profit center is reassigned to cons. unit and partner company / partner profit center to partner cons. unit )

OR Transfer of documents that do not affect the leading ledger

Remark: You can also use the roll-up as an alternative to online postings.

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Integrating GL with Logistics and HCM

Logistics In the same way as in R/3, MM and SD generate documents and then

call RWIN The derivation of the organizational units (such as profit center) is

done like in Logistics in R/3 The exceptions are the segment and partner segment, they are

derived in RWIN from the profit center or by substitution

HCM and Travel Management In the same way as in R/3, HCM and TM generates documents and

then calls RWIN The derivation of the organizational units (such as profit center) is

done like in HCM and TM in R/3 The transfer of detailed account assignment information such as

profit center or segment is not realized for all types of line items(for ex.: Payables to employees)

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Interfaces

The existing BAPIS have been enhanced with the new fields and continue to be available

If postings are to be made via a BAPI with an accounting principle, then the accounting principle must be assigned to a ledger group in Customizing

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