new gl overview
TRANSCRIPT
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General Ledger in
SAP ERP 6.0
Solution Management FinancialsSAP AG
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SAP 2007 / Page 2
Agenda
1. Requirements and Architecture2. Benefits of the General Ledger
3. Positioning and Availability
4. Customers
5. Summary
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SAP 2007 / Page 3
The New General Ledger Motivat ion
Extensibility
Balanced booksin any dimension
Parallelaccounting
Fast closeTotal cost of
ownershipreduction
Transparency
Compliance
Legal entityreporting
Segmentreporting
Managementreporting
New GL inSAP ERP 6.0
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SAP 2007 / Page 4
General Ledger in SAP ERP 6.0 Architecture
Legal, Segment, and Management Reporting
. . .
General Ledger in SAP ERP 6.0
Company Segment Partner CoLedger Func. AreaPartner Seg
Accounting Interface
Logistics / HR Financial Supply Chain Acctng Subledgers
SAP Consolidation
(Consolidated)
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SAP 2007 / Page 5
GL in SAP ERP 6.0 Standard Structure
General Account + Subaccnts Industry Template
+ Grant
+ Fund
+
ERP2005
Ledger Account
Transaction Type
Functional Area
Value in TC
Value in LC Value in GC
Org Units Company
Segment
Profit Center
Partner Company
Partner Segment
Partner Profit Center
Customer Extension+
+
Despite its flexibility, General Ledger is no substitute for SAP Profitability Analysis orSAP Business Information Warehouse.
Reasons: Data volume, performance, functionality.
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Agenda
1. Requirements and Architecture2. Benefits of the General Ledger
3. Positioning and Availability
4. Customers
5. Summary
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New General Ledger Benefits and Concepts
Multi-dimensional balancing
Debit
6040
Credit
6040
Local GAAP
US GAAP
xxx xxxxxx
Document entry
Debit
100
Accnt / SEG
-------------------- A
---------- B
Credit
60
40
Online
Split
IFRS
xxx xxx xxx xxx xxxxxx
Multi-dimensional
Benefits of the New GL:
Unified Financial &Management Acctg
Extensibility for customer dimensions Support of multiple reporting rqmnts
Support of Parallel Accounting
Fast Close
Increased transparency Reduced TCO
Multi-ledger update
Multiple
v
aluation
Accnt / SEG
---------- A---------- B
---------- A---------- B
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General Ledger in SAP ERP 6.0 Benefits (1)
Unified Financial and Management Accounting
One version of the truth stored in the General Ledger
Same valuation
No inconsistency No reconciliation
Supports different reporting purposes
Legal entity reporting Segment reporting
Management reporting
Multi-dimensional analysis Account analysis, Drilldown reporting
BW Remote reporting slide and dice for all dimensions
Pre-defined reports delivered as SAP content
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BW Report ing for General Ledger
Company, Segment, PC,
FI
CO
. . .
Company, Segment, Profit Center, Functional Area, Transaction Type,
SAP BWGeneralLedger
Remote Extractor
Periodic Extractor
SAP ERP 6.0 is based on SAP NetWeaver which includes BW reporting.
Therefore, there is only 1 system required.
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General Ledger in SAP ERP 6.0 Benefits (2)
Extensibility for customer dimensions
Option to expand standard accounting with
Industry specific fields
Customer-defined fields
Meets international expectations
Integration of management dimensions in the GL
Supports allocation on additional dimensions in the GL
Important for industry solutions
Possibility to adjust to own requirements and terminology
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General Ledger in SAP ERP 6.0 Benefits (3)
Balanced Books for any dimension
Essential for segment reporting and management reporting
Balance sheet for segments
KPI including B/S accounts
Important for various industries
Public sector, Insurance, Media,
Often legal requirements
Dimensions can be defined in the configuration.
There is a new standard field segment in SAP ERP 6.0.
Segment is derived from a profit center (PC).
It can be filled manually or defaulted.
Option to determine it via a BAdI (Business AddIn)
Recommended for segment reporting (in case there are too many PCs)
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Balanced Books for any Dimension
Entry View
Data entry: Expenses for two profit centers
Expenses are entered for two cost centers from which profit centers and
segments are derived. Payables are entered as one total amount.The total tax amount is derived accordingly.
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Balanced Books for any Dimension GL View
In the GL view, payables and taxes are split online by profit centers
and segments. The ratio is picked from the expense items.
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Online Split for Process Chains Invoice
Enrichment
Entry View GL View
Posting
Vendor Invoice
PK Account PrCtr CCtr Amount
40 Expense PC01 CC01 40040 Expense PC02 CC02 60031 Payables 1000-
Vendor Invoice
PK Account PrCtr CCtr Amount
40 Expense PC01 CC01 40040 Expense PC02 CC02 60031 Payables PC01 400-31 Payables PC02 600-
Document 4711
The split info (PC01 40%,PC02 60%) is stored for usage
in subsequent processes.
TotalsSingleItems
Doc 4711
SplitInfo
Table
Posting
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Online Split for Process Chains Payment (1)
In a first automatic step, additional costs are broken down according to the split info.
Enriched DocumentEntry View
Payment
PK Account PrCtr CCtr Amount
25 Payables 100050 Bank 970-50 Discount 30-
Payment
PK Account PrCtr CCtr Amount
25 Payables 100050 Bank 970-50 Discount PC01 CC01 12-50 Discount PC02 CC02 18-
Split of the discount
Split
InfoTable
The split info (PC01 40%, PC02 60%)is applied on the discount of the payment.
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SAP 2007 / Page 16
Online Split for Process Chains Payment (2)
Enriched Document GL View
EnrichmentCleared Document
Payment
PK Account PrCtr CCtr Amount
25 Payables 100050 Bank 970-50 Discount PC01 CC01 12-50 Discount PC02 CC02 18-
PK Account PrCtr CCtr Amount25 Payables PC01 40025 Payables PC02 600
50 Bank PC01 388-50 Bank PC02 582-50 Discount PC01 CC01 12-50 Discount PC02 CC02 18-
Posting
The split info (PC01 40%,
PC02 60%) is also applied onpayables and bank account.
Totals
SingleItems
Doc 4712
Split
Info
Table
Posting
G l L d i SAP ERP 6 0 B fit (4)
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General Ledger in SAP ERP 6.0 Benefits (4)
Parallel Accounting
The New General Ledger supports Parallel Accounting by using either parallel accountsor 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 betterthanthe SAP R/3 approach of using classic GL plus the special ledger application.
P ll l A ti b i P ll l L d
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Parallel Accounting by using Parallel Ledgers
Parallel Accounting Details
Any number of parallel ledgers
For parallel valuation local GAAP, group GAAP, tax purposes
For different fiscal year variants
Same UI for all ledgers (data entry, functions, reporting)
Almost the same functionality for all ledgers
Standard reporting for multiple ledgers
Postings into multiple ledgers
Postings per specific ledger
Closing activities are run separately in parallel ledgers.
P ll l A ti Th L di L d
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Parallel Accounting The Leading Ledger
In GL, one ledger is assigned the role of the leading ledger. Group valuation is usuallymapped in this ledger.
All company codes are automatically assigned to the leading ledger (cannot be deactivated).
If parallel reporting is done by parallel accounts, then there is exactly one ledger in the NewGL, the leading ledger.
For parallel reporting via parallel ledgers, the customer can add additional ledgersto the New GL per company code.
The leading area of asset accounting (area 01) is posted to the leading ledger.
Controlling is integrated to the leading ledger.
Parallel Ledgers Posting to all Ledgers
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Parallel Ledgers Posting to all Ledgers
If ledger is not specified at time of document entry: Posting to all defined GL ledgers
Typical transactions: Ingoing invoice, Outgoing invoice, Payment
Ledger A(IAS)
(leadingledger)
Ledger C(HGB)
Ledger B(US GAAP)
Parallel Ledgers Posting to one Ledger
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Parallel Ledgers Posting to one Ledger
B
If ledger is specified at time of document entry: Posting to the specified ledger only
Typical transactions: Valuation postings, Period end postings
Ledger A(IAS)
(leadingledger)
Ledger C(HGB)
Ledger B(US GAAP)
Parallel Accounting for Primary Processes
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Parallel Accounting for Primary Processes
Primary Processes
Invoices, Payments,
Creation ofone document for allparallel ledgers
Accounting Interface
Online split, substitution,
Ledger
L1
Ledger
L2
Fiscal year variant and subset of
dimensions may differ per ledger.
Parallel Accounting for Secondary Processes
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Parallel Accounting for Secondary Processes
Secondary Processes, e.g. IFRS
Allocation, Currency Valuation,Carry Forward,
Creation ofparallel documents,separate documents per ledger
Secondary Processes,Local GAAP
Allocation, Currency Valuation,Carry Forward,
Accounting Interface
Online split, substitution,
Full parallel accounting: different settings for
valuation, fiscal year variant, selected dimensions
Accounting Interface
Online split, substitution,
Ledger L2Ledger L1
General Ledger in SAP ERP 6 0 Benefits (5)
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SAP 2007 / Page 24
General Ledger in SAP ERP 6.0 Benefits (5)
Fast Close
Many period-end activities are no longer required:
Document online split substitutes batch split at period end.
Real-time posting from CO into FI - no longer at period end.
Legal and management data are in one uniform database.Closing activities are run just once and not multiple times.
One uniform database instead of multiple related databasessaves a lot of reconciliation time.
There is more time for analysis and better decision support.
General Ledger in SAP ERP 6 0 Benefits (6)
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General Ledger in SAP ERP 6.0 Benefits (6)
Corporate Governance
Perfect support of transparency
Legal entity, segment and management reporting as unified whole
Same procedures and same quality for all valuations
Document principle, entry view linked to each ledger
Less manual processing
less risk of non-compliance Less double processing less risk of non-compliance
General Ledger in SAP ERP 6.0 Benefits (7)
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General Ledger in SAP ERP 6.0 Benefits (7)
TCO Reduction
Configuration
Best fit no discussions about which component to choose
Reduction of implementation costs just one component Reduction of costs for end user training
Daily Business
Reduced manual reconciliation and balancing activities
Less effort for enhancing / changing the system
Technique
No data redundancy less data volume reduced data storage
Reduced ongoing maintenance and developmenttime
Agenda
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Agenda
1. Requirements and Architecture
2. Benefits of the General Ledger
3. Positioning and Availability
4. Customers
5. Summary
New General Ledger Availability
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New General Ledger Availability
New Installations
New GL is the default setting for all new installations.
Upgrade Installations
Customers are not required to change and may continue using Classic GL. Customers may run a separate migration project at a later point of time.
New GL in ERP 2004
Unrestricted availability since the end of February 2005.
New GL in ERP 2005
Unrestricted availability since Q2 / 2006
New GL in SAP Enhancement Package 3 for SAP ERP 6.0
Available in December 2007 for Ramp-Up customers
More details on www.service.sap.com/rampup
Scenario-based SAP General Ledger Migration service
Fully available since Q2 2007
Migration training AC212 (for certain migration scenarios) available since Q2 2007
SAP Enhancement Package 3 for SAP ERP 6.0
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SAP 2007 / Page 29
g
New GL
Parallel Accounting
Posting and clearing ledger-group- specific documents on open item managed G/L accounts
Planning
Cumulative display for B/S accounts during plan data entry
Real-time integration of CO plan data to G/L
Upload of plan data from external data sources
New Authorization Check for Profit Centers when posting, clearing and displaying documents
New Standard Reports
for Profit Centers and Segments (Drill-Down)
Conversion Tool
to transfer Classic Profit Center Reports to New G/L
New Customers
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The New General Ledger is default for new installations.
It is based on proven functionality and technology of the classic G/L in R/3 which is currentlyused at more than 10.000 customers.
The classic G/L remains available in SAP ERP 6.0
for upgrade customers
for new customers with specific industry requirements (e.g. J oint Venture Accounting).
Upgrade Customers
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pg
The classic G/L is still available in SAP ERP 6.0.
Upgrade installations will continue to use their current applications per default.
Customers who are satisfied with their current installation will not be required to changeanything and will not be affected at all.
SAP offers the SAP General Ledger Migration service which combines the general ledgermigration cockpit and service sessions to ensure a safe migration.
Even with the availability ofthe general ledger migration cockpit, there is no push-button
solution. Customers are strongly advised to set up a separate project for changing from theclassic G/L to the New GL.
For further information about the SAP General Ledger Migration please
refer to http://service.sap.com/GLMIG
GL in SAP R/3 Enterprise and SAP ERP 6.0
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General Ledger in SAP R/3 Enterprise General Ledger in SAP ERP 6.0
Multiple Applications
Classic GL
LegalRequirements
SAP ERP 6.0: A Unified World
General Ledger supports
Legal Requirements
Mgmt. and Segment reporting
Extensibility by Industries
Extensibility by Customers Balanced book by any dimension
Parallel sets of books
Fast Close
TCO reduction
Intl. Accounting Standards
Compliance & Transparency
CoGS
Ledger
Profit Center Ledger
Management andSegment reporting
Special Ledger
Multi-dimensional,Customer-defined
Industry Specific Ledgers
B/S by Grant,Fund, Title
GL in SAP ERP 6.0 The Unified Approach
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Cons.
Preparation
EC-PCA
GL inSAP ERP 6.0
FI-SL CO-OM
CO-PACoGSLedger
Reconc.Ledger
Accounting Interface
Document Online Split:Balanced book for any dimension
Profit CenterDetermination
CurrencyTranslation
Zero balanceDerivation
Agenda
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1. Requirements and Architecture
2. Benefits of the General Ledger
3. Positioning and Availability
4. Customers
5. Summary
New GL Customers Overview
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ERP 2004 / 2005
More than 1000 live customers*
25 successful migration projects*
Further migrations projects have been started
27 reference customers*
* October 2007
New GL Customers References (1)
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Reference Customer Industry Country
AIR FRANCE Cargo Services France
J M AB Engineering Sweden
AIR LIQUIDE Chemicals France
InfraServ Chemicals Germany
bebit Engineering Germany
CorpTech Public Sector Australia
HDI Insurance Austria
PETRON Corporation Oil & Gas Philippines
Oy Karl Fazer Ab Consumer Products Finland
CREDIT LOGEMENT Banking France
New GL Customers References (2)
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Reference Customer Industry Country
BOC Gases America Chemicals USA
Bridgestone Americas Automotive USA
State of California Public Sector USA
The Home Depot Retail USA
Forest City Enterprises Inc Professional Services USA
Flir Systems, Inc. Aerospace & Defense USA
WorldSpace Inc Telecommunications USA
Electro Scientific Industries Industrial Machinery USA
Newport Corporation Aerospace & Defense USA
Mnchener Rck Insurance Germany
New GL Customers References (3)
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Reference Customer Industry Country
Nordenia Forest Products Malaysia
BBS Bankenes Banking Norway
MEAG MUNICH ERGO Insurance Germany
Centrica Plc Utilities & Waste Great Britain
CITIC Industrial Bank Banking China
Higher Education Press Media China
Rio Tinto Aluminium Primary Metal & Mining Australia
Success at our Customers
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We generate a balance sheet and profit and loss statement atthe profit center/store level. Online document splitting enablesa very high degree of automation.
Ms. Byner-Bendig, Common Template
Accounting FI/CO, Metro Group
With the New GL in SAP ERP 6.0 we are able to master allrequirements for parallel valuation (Local GAAP and US-GAAP)
Dieter Bankosegger,Head of the Financial Accounting Department
With New GL we have the ability to differentiate each posting byfund and with this new GL functionality we are benefiting from moreaccurate account assignmentprocedures re-designed to support ourcomplex Fund Accounting for DWR
Mary Smith, project manager, Department of WaterResources - State of California
Migration to New GL - Success at our Customers
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The functionality of the migration programs and thestructured process reduced the costs and the risk in themigration project.
Reinhold Scherer, Manager Subdivision
Accounting, Ameco, China
SAPs general ledger migration team provided optimumsupport for the implementation of the new general ledger.
Runar Kletvang, BBS(Banking and Business Solutions), Norway
SAP's support during our rollout planning, testing and duringour go-live weekend, was an important factor in our success.
Rob Sargeson, Chief Information OfficerThomson Legal and Regulatory, Thomson, USA
Agenda
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1. Requirements and Architecture
2. Benefits of the General Ledger
3. Positioning and Availability
4. Customers
5. Summary
Benefits of the General Ledger in SAP ERP 6.0
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The General Ledger supports a Unified Financial and Management Accounting.
It provides Extensibility and Flexibility to add industry or customer specific dimensions tostandard accounting.
There is powerful functionality for Balanced Books by Any Dimension which is importantfor segment and management reporting, and in many industries.
The General Ledger supports Parallel Accounting by Using Parallel Ledgersor Parallel Accounts.
There is a strong support ofFast Close since many period-end activities are no longerrequired.
The General Ledger provides perfect transparency and reduces the risk of non-compliance thus supporting Corporate Governance.
Low TCO for implementing and running the General Ledger.
Further Information
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New G/L and migration to new G/L is covered in greater depth in the following SAP
training courses:
AC210: New General Ledger Accounting
AC212: Migration to New General Ledger Accounting
www.sap.com/germany/services/education/
Updated Information about the New G/L from Solution Management
www.service.sap.com/GL
http://www.sap.com/germany/services/education/http://www.service.sap.com/GLhttp://www.service.sap.com/GLhttp://www.sap.com/germany/services/education/ -
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Thank you!
Questions?
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