“The SAP New G/L in Overview”

Dr. Guenter Dortmann

W t
Westernacher
h Consulting
C lti China
Chi
Contents

Sh
Short Westernacher
W h Introduction
I d i

Key features of the new G/L

Parallel Valuation – multiple ledger approach

“Realtime” integration in Financial Accounting

Enhanced Segment Reporting (document splitting)

Major benefits of the new G/L

Key decision points

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2
Westernacher – Business & IT Consulting

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3
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4 Management
Contents

Sh
Short Westernacher
W h Introduction
I d i

Key features of the new G/L

Parallel Valuation – multiple ledger approach

“Realtime” integration in Financial Accounting

Enhanced Segment Reporting (document splitting)

Major benefits of the new G/L

Key decision points

5
5
 Keyy features of the new G/L
/
• Ledger approach (ledger groups)
• New transactions to post in
particular ledgers
• New financial statement reports
Parallel Valuation
FAGLFLEXT
Improved Integration
• Realtime
R lti CO/FI iinterface
t f
• Additional Fields
(scenarios)
• Segment, PC, FA
new • Asset Accounting (incl. AuC)
• Cost Center, etc.
G/L • Inventory Management
M
• Customer Fields
• Consolidation
• WBS element, Order

Document Splitting
• S t off splitting
Set litti methods
th d and
d rules
l
• Online split of
6 follow up costs
• Zero-Balancing functionality
Totals Table FAGLFLEXT
One look at the database table makes the p
primaryy standard extension of the data
structure visible immediately:

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FAGLFLEXT - Single Source of Information

Business Requirement FAGLFLEXT

Parallel Accounting Ledger Group

Cost of Sales Accounting Functional Area

Segment
Balanced Reporting
Business Area
(Full Balance Sheet and P&L)
Profit Center

Consolidation Trading Partner

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Scenarios

What is a scenario?
A scenario defines which fields are updated in the ledgers (in the general ledger view)
during a posting (from other application components)

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Entry view and G/L view

Definition:
Entry view: View of how a document also appears in the
subledger views / subledgers (AP, AR, AA, taxes)
General ledger view: View of how a dosument (only) appears in
the general ledger.

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 New FI drill
drill-down
down reporting
Account Balances Financial Statement

S_PLO_86000028 (a/a) (new)

FGI3 (own reports)
GL Vendor Customer Asset

S_PLO_86000030 FK10N FD10N AW01N (Individual)

FAGLB03 (new) S_ALR_87011963 Drill-Down
………
S_ALR_87011970
Line Items/Documents

GL Vendor Customer Asset

FAGLL03 (new) FBL1N FBL5N AB03

FBL3N FB03 FB03
Drill-Down
FB03

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Contents

Sh
Short Westernacher
W h Introduction
I d i

Key features of the new G/L

Parallel Valuation – multiple ledger approach

“Realtime” integration in Financial Accounting

Enhanced Segment Reporting (document splitting)

Major benefits of the new G/L

Key decision points

12
12
Multiple ledger approach
Leading Ledger
using
0L •Local Currency (10),
•Fiscal Year Variant
IFRS •Posting Variant
of a Company
1… Code
New transactions
N1 Available to capture
postings in particular
4… 5… US GAAP ledgers only
1…
N2

4… 5… LOCAL
1…

New drill-down reports

to ensure financial
4
4… 5
5…
statements for particular
ledgers

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Multiple ledger approach
 SAP new G/L allows yyou to manage
g pparallel ledgers
g according
g to different accounting
g
principles simultaneously.
Example: In addition to your leading ledger 0L – which is the “main” general ledger of
your Company Code and might reflect IFRS (?) you might have two non-leading
ledgers (N1 and N2) reflecting local Chinese GAAP and US GAAP.

 Subsidiary ledgers (AP, AR and AA) always update all ledgers (Blank Ledger
Approach). The system creates one document for each ledger.

 The leading ledger 0L is the only ledger posting “through” into CO (!) to ensure that
the cost is updated on CO objects (Cost Centers
Centers, WBS elements
elements, orders,
orders others).
others)

 When CO writes back into FI (i.e. during AuC settlement, WIP settlement or due to CO
cross-dimension cycles according to predefined scenarios) all ledgers are updated
simultaneously. 14
14
Contents

Sh
Short Westernacher
W h Introduction
I d i

Key features of the new G/L

Parallel Valuation – multiple ledger approach

“Realtime” integration in Financial Accounting

Enhanced Segment Reporting (document splitting)

Major benefits of the new G/L

Key decision points

15
15
P&L “Online“
Online Reconciliation
FI
Profit &Loss Profit &Loss
(by Period) (by CoS)
Rent 200 Sales Rev 400 COS 300 +25 Sales Rev 400
l 300
Offi Supply
Office S OVH 30 -25
200 +30 25
Insurance 100 R&D 100 -30

100 CO
30
Cost Center
40
200 Online Update on all
40 dimensions according to
predefined scenarios!

300 25  No transaction KALC!

Production FI Posting
CO Primary Cost Reposting (KB11N)
16
CO Primary Cost Distribution (KSV5)
Integration of subsidiary ledgers
0L
Assets N1
Balance sheet N2
FI-AA 2…

Vendors
4… 5…
Debtors FI-AP
FI-AR
„Blank“ Ledger
Group as a common
valuation
l ti approachh
CO
Profit &Loss

6… 7…

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Integration of Asset Accounting
Online posting of Follow-up costs
Document entry view "Purchase of an Asset"

Comp Code Line PK Account Amount Crcy Tax CC PC

0003 1 31 Vendor 110.000,00- EUR IS
2 70 Asset class 100 000 00 EUR
100.000,00 IS SERV ADMIN
3 40 Input tax (10%) 10.000,00 EUR IS

3% Cash discount:
R/3 4.6C:
In many countries cash
Usage of report SAPF181 at
discount reduces the
end of month to adjust the
acquisition and
acquisition and production
production costs of the
costs
asset.

ERP 6 6.0:
0:
Usage of document splitting
(method 0000000012) &
activation on cash
discounts on assets

Document entry view "Outgoing Payment with adjustment of fixed asset"

Comp Code Line PK Account Amount Crcy Tax CC PC

0003 1 50 Bank 106.700,00-
106.700,00 EUR
2 75 Asset class 3.000,00- EUR IS SERV ADMIN
3 25 Vendor 110.000,00 EUR
4 50 Input tax (10%) 18
300,00- EUR IS
Integration of Asset Accounting

„Blank“ Ledger
G
Group as a common
valuation approach
01 IFRS 20.000 EUR (1)
40 Local 20 000 EUR
20.000 (1)
(1)
IFRS (0L) 40 Local 2.000 EUR AA
(3)
41 40-01 2.000 EUR
Local (N1) (3)

Transaction Acquisition Depreciation Retirement

Clearing Gain from Loss from
Ledger Asset Asset Asset
Depr.par.
Depr par Group AA recon Acc dep.
Acc. dep AA recon Acc dep
Acc.dep. Retirement Retirement Retirement
Depr.Area straightline,
01 IFRS 10 years 0L 20,000 -2,000 -20,000 2,000 17,800 -200 200
Depr.Area straightline,
40 Local 5 years N1 22,000 -4,400 -22,000 4,400 17,800 200 -200
D
Depr. A
Area
41 (40 minus
01) N1 2,000 19 -2,400 -2,000 2,400 0 400 -400
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Integration of Asset Accounting
 Asset Accounting is based on different Depreciation Areas (eg.
(eg 01,
01 40) which are
assigned to different ledger groups (eg. 0L, N1 etc.) reflecting accounting principles
(eg. IFRS, Local GAAP).
 F
For eachh Depreciation
D i ti AArea the
th d depreciation
i ti tterms ((uselife
lif time,
ti depreciation
d i ti method
th d
etc.) are specified based on which the system determines the depreciation value and
will posting it to the assigned Ledger Groups. By doing so valuation differences
b t
between the
th GAAPs
GAAP will ill b
be portrayed
t d iin th
the Depreciation
D i ti A Areas.
 The Book Depreciation Area 01 is linked and posting to the 0L (and will therefore
update all ledgers). Consequently the system needs a Delta Depreciation Area (41) to
track the difference between IFRS (01) and Local GAAP (40) and then only to post this
differences into the ledger group N1.

 Pls.
Pl note
t that
th t only
l Depreciation
D i ti A Area 01 is d ti CO (!)
i updating

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Contents

Sh
Short Westernacher
W h Introduction
I d i

Key features of the new G/L

Parallel Valuation – multiple ledger approach

“Realtime” integration in Financial Accounting

Enhanced Segment Reporting (document splitting)

Major benefits of the new G/L

Key decision points

21
21
Segment Reporting (Derivation Logic)

Profit Center Segment

g (Derivation)
( )
(Derivation)
ADMIN Company
Each Cost Center
and WBS element links Type
yp 1
to a Profit Center Type 2
(and a Functional Area) ADM

Type 1

Type 2
Each Profit Centre
links to a Segment

CoS
OVH Functional Area
Cost Ctr (Manual Input) Projects (Manual Input) R&D (=P&L position)
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Segment Reporting (Derivation Logic)

Profit Center ((Derivation)) Segment

g (Derivation)
( )

ADMIN 9850
LOB 1
Cost Center LOB 2
ADMIN
(Manual Input)

TRUCK
CMP_TR

BIKES
Each Profit Centre
RDHYBR
links to a Segment

Each Cost Center

“links” to a Profit Center Assignment
Derivation
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Segment
g Reporting
p g (Document
( Splitting)
p g)

Document Splitting
has split the vendor
payable and the GST
li b
line basedd on a
Splitting Method and
Splitting Rules.

Document is
enhanced with the
corresponding
balance sheet
items automatically.

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Segment
g Reporting
p g (Document
( Splitting)
p g)

In cross Segment
situations - such as
balance sheet transfer
postings - additional
“dummy” or clearing
items are created in
order to ensure balanced
reporting for this
dimension.

The offset
postings hit a
preconfigured
fi d
default Profit
Center/Segment
clearing account.

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 Allocations in FI
You can now use FI (no longer only CO) in the ERP 6.0 solution to perform
allocations (assessment and distribution).
Why are allocation needed in FI ?
Because the new general ledger now lets you model profit center accounting as
well, for example, to distribute „overhead costs“ (cafeteria expenses, electricity,
water, etc.) from one profit center (such as the dummy PC) to another at the end of
a period.
Profit center
1 Profit center
Profit center
2
9999 Profit center
41XXXX 10,000 3 Profit center
417XXX 35,000 4
42000 ,
8,500

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 Major Benefits of the new G/L
• Integrated statutory and management
reporting
p g
•BS and P&L on multiple dimensions
Enhanced Financial Reporting

Accounting Principles Accelerated Closing

and Parallel Accounting
• Closing cockpit
• Accounting
g principles
p p
• Integration of Asset
• IFRS, US GAAP, local
new Accounting
• Integration of Asset G/L
• “Elemination” of CO
Accounting
reconciliation ledger
• Integration of current
• Consolidation
assets
• New
N G/L approachh
Cost of Sales Accounting
• Special ledger
• Account model • Functional area as a
standard field in FAGLFLEXT
• Integration
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CO and FI
• “realtime” P&L reconciliation
 Key decision points of the new G/L
• Leading
g (statutory)
( y) Ledger?
g
• Additional Ledgers for Management Reporting?
Multiple Ledger Approach

FAGLFLEXT Improved Integration

• Additional Fields • Which dimensions update FI
• Segment, PC, FA totals table?
• Cost Center, etc. new • Asset Accounting (incl. AuC)
G/L
• Customer Fields • Inventoryy Management
g
• WBS element, Order • Consolidation

Document Splitting
• Zero Balancing in which dimensions?
(S
(Segment?? Profit
P fi C Center?? Else?)
El ?)
• Relevant Fields
28 must be ready for input
• Design must be complete
Thank you…

22 May, 2009 29 Author, Company

Appendix

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Integration of Asset Accounting
N2 N2
Leadingg Ledger
g
(0L) updates CO N1 N1 FI
0L 0L

IFRS IFRS
AuC 650
Wages 200
Current 300
Material 300
Bank/Cash100
Oth Serv.
Oth. S 250

Capitalisation
versions linked to CO
d
depreciation
i ti areas

200
Definition of
percentage rates per
capitalisation
300 250 version differentiated
100
by cost element

Production FI Posting
Cost Center 31 CO Primary Cost Reposting (KB11N)
CO Settlement (CJ88)
Westernacher China – 4 Main focus
areas

Westernacher
China
Business
Localization
Process
For China SAP
SAP Engineering
And EWM
ERP Finance
R ll t
Rollout SPM
HCM
projects
Logistics

1st Tier Partner of SAP for EWM and SPM in China

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