Parallel_Ledger

7/30/2019 Parallel_Ledger

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IBM Corporation

Parallel Accounting in mySAP



© 2006 IBM Corporation

Chapter Object ives:

● Understand need for parallel Accounting● Understand different solutions for parallel Accounting

● Understand use of parallel Ledgers

● Distinguish between Leading / Non-Leading Ledgers

● Create and Activate of parallel ledgers

● Understanding the use of Ledger Group● Use of Document type of GL view

● Use of Document number ranges for GL view

● Parallel Accounting in Asset Accounting

● Configuration of Delta Depreciation Area

● Use Parallel Ledgers for Foreign Currency Valuation● Difference to Classic General Ledger

● Differences to Special Purpose Ledger

● Differences to Classic Profit Center Accounting




Paral lel Account ing - Introduct ion

In Europe, all publicly traded companies must submit their consolidated financialstatements according to the International Financial Reporting Standards (IFRS),in addition to the country-specific local legal accounting standards. Meanwhile,companies listed in the United States or belonging to a US group must alsocomply with US Generally Accepted Accounting Principles (GAAP) accountingstandards

Parallel accounting means that postings and financial statement reports are madeseparately and simultaneously in accordance with all required accountingstandards.

Example: Parallel accounting is necessary for a German subsidiary of an American group. The German subsidiary has to create financial statementsaccording to the accounting principles of the group (such as US GAAP) as wellas according to German commercial law (HGB).

The following approaches to portray parallel accounting in SAP System:

● Using Additional Accounts● Using Additional Company Code.● Using Parallel Ledgers




Paral lel Accoun t ing Using Addi t ional Accounts

One joint account area for postings that are the same for both accountingprinciples

One area with specific accounts for each accounting principle. Each

business transaction that, dependent on the accounting principle, leads

to a different posting, is posted to the corresponding specific account

area.




Paral lel Accoun t ing using Using Addi t ional

Company Code

Company Code SolutionDifference postings are created for additional accounting and posted to

the additional company code. Reporting covers the actual company code

and the additional company code

You can post to an additional company code with the following valuation

reports:● Value Adjustment

● Reclassification and Sorting of Receivables and Payables

● Foreign Currency Valuation




Paral lel Accoun t ing Using Paral lel Ledgers

In General Ledger Accounting, you can perform parallel accounting byrunning several parallel ledgers (general ledgers) for different accounting

principles. During posting, you can post data to all ledgers, to a specified

selection of ledgers, or to a single ledger.

Advantages: You can manage a separate ledger for each accounting principle.

You can use standard reporting for the leading ledger and all other

parallel ledgers.

With this solution scenario, you can portray different fiscal year variants.

The number of general ledger accounts is manageable.

Disadvantage:

The use of parallel ledgers increases the volume of data.


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Parallel Ledgers in New GL

The New General Ledger supports Parallel Accounting by using Either parallel accounts or parallel ledgers. In New GL, both approaches are considered equally powerful. Thechoice will depend on the specific customer situation. The parallel accounts approach in the New GL is as powerful as inclassic GL in R/3.

The parallel ledgers approach in the New GL is much better than TheSAP R/3 approach of using classic GL plus the special ledger application. Any number of parallel ledgers

o For parallel valuation –local GAAP, group GAAP, tax purposes

o 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.



Parallel Ledgers: In trodu ct ion

Parallel ledgers facilitate parallel financial reporting

mySAP allows you to create multiple ledgers which operate in

parallel to cater to different accounting requirements.

Additional non-leading ledgers are added in addition to the leadingledger



Paral lel Ledgers

Each ledger represents one of the accounting standards.The system posts to all ledgers unless otherwise specified by the

configuration or the user.

Accounting standard-specific postings are made to specified ledgers only.

All accounting transactions (e.g., invoice against receivables, vendor

invoice, or material procurement) are posted to all ledgerssimultaneously.

Valuation differences such as foreign currency valuation, asset

acquisitions, and depreciation necessitated by different accounting

principles are posted only to the necessary ledgers.




Design : Leading Ledger Integration




Basic components and operat ion of paral lel

accoun t ing in New GL




Leading & Non-Leading Ledgers

Leading Ledgers: There is exactly one leading ledger in every client.

In Customizing it is determined, which ledger in a client is assigned

the role of leading ledger.

The leading ledger reflects the accounting principle which is used to

generate the consolidated financial statement. It is integrated with allsub ledgers and updated in all company codes (if posting is not

ledger-specific)

Non-Leading Ledgers:

Activated separately for each company code




Ledger : Attr ibu tes

The Primary Deprecation Area (01) of Asset Accounting must beposted to the Leading Ledger.

Controlling must also be integrated to the Leading Ledger

The leading ledger inherits precisely these settings of this posting

code in every company code:

Fiscal year variant of the company codeCurrency of the company code

Non-leading ledgers must be activated for the respective

company code. For every company code, you can have

different fiscal year variants and sub-quantities of the second

and third house currency of the leading ledger in the respectivecompany code. The first currency is always maintained in all

non-leading ledgers.




Act ivat ing Non-Leading Ledgers




Scenar io Assignment




Ledger Group

Definition: 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 whole

● You can combine any number of ledgers in a ledger group

● Each ledger is automatically created as a ledger group with the same

name● If you do not enter ledger group, processing is performed automatically

for all ledgers

● When you define ledger group, you have to designate one of the

assigned ledger as the representative ledger for that group




Represen tat ive Ledger of a Ledger Group

● There is exactly one representative ledger in each ledger group● If the ledger group has a leading ledger, the leading ledger must bedesignated as the representative ledger.

● Significance of the representative ledger:Derivation of the period determination for the entry view.The system uses the representative ledger to determine the posting

period during posting and to check whether the posting period is open● If all ledgers in the ledger group have a different fiscal year variant tothat of the company code, you can designate any ledger as therepresentative ledger.

● If one of the ledgers in the ledger group has the same fiscal year variantas that of the company code, you must designate that ledger as the

representative ledger ● Attention:

If the posting periods of the representative ledger are open thenpostings are made in all other ledgers, even if their periods are closed.




Account ing Document View

Press this button todisplay the GL view

on the non – leading

ledger




Parallel Ledger Direct Document Entry

A new FI posting transaction is delivered in which the Ledger group can be

specified:




Paral lel Ledgers – Post ing to al l Ledgers




Paral lel Ledger – Post ing to a sing le ledger




Paral lel Accoun t ing fo r Primary Processes




Subsequent process

e.g. according to IAS

e.g. allocation, foreign currencyvaluation, balance carry-over …

Subsequent process

e.g. acc. to local GAAP

e.g. allocation, foreign currencyvaluation, balance carry-over …

Ledger 0ALedger 0L

Creation of parallel accounting

documents for every valuation

Real parallelism with regards

to valuation, period sorting and

selection of characteristics

New G/L

Accounting Interface

Online Split, Substitution….

Accounting InterfaceOnline Split, Substitution….




Paral lel Ledgers – Secondary Processes

In configuration, Accounting Principles are defined (e.g. GAAP) andsubsequently assigned to both:

Parallel ledgers

Valuation areas

Account determination can then be defined uniquely per Valuation area when

configuring secondary processes

It is possible to re-run the process for each valuation area e.g.:




Define Document Types fo r General Ledger View

1. No need to make these settings for your leading ledger because, in thecase of this ledger, the document number in the entry view always

corresponds to the document number in the general ledger view.

2. Make these settings for any non-leading ledgers that have a fiscal year

variant that differs from the fiscal year variant of the leading ledger in

this company code.● In this case, the document number in the entry view does not correspond to

the document number in the general ledger view

3. The need to define a document type for documents in the general

ledger view depends only on whether the fiscal year variant of the non-

leading ledger in the company code (to which the postings are made)

differs from the fiscal year variant of the leading ledger in this company

code.




Def ine Document type for entry view in one

ledger

1. Specifying the document type for postings to non-leading ledgers inDocument entry transactions.

2. To define document types for postings to non-leading ledgers, Set up

a separate document type for these postings. Assign a unique number

range to this document type for each ledger.

3. Example:Document Type SX, Closing Postings, Ledger L2, Number Range 91

Document Type SX, Closing Postings, Ledger L3, Number Range 92

4. By segregating the ledger-related postings (here, for the non-leading

ledgers) in a separate number range, you ensure the contiguous

assignment of document numbers at the ledger level for each number

range.




Paral lel Account ing in Asset Accoun t ing

Each parallel valuation is defined in the New GL as a ledger group and

in AA as Depreciation Areas

Depreciation Area 01 must be assigned to the leading ledger

In AA, each parallel valuation is depicted by two Depreciation Areas

(one real, the other derived) – both are assigned to the same ledger

group

The derived area keeps track of valuation differences between area 01and the parallel area

These differences can be posted periodically to the parallel ledgers so

that the values in the asset sub-ledger are correctly reflected in the

New GL

Implication: additional GL accounts/financial statement versions arenot required to report across all ledger groups (valuations) when the

parallel ledger approach is used.




GL w ith Asset Account ing : Parallel Ledgers




GL with Asset Account ing : Asset Transact ion




Making Sett ings fo r Paral lel Ledgers in FI-AA

Real Depreciation Area: –In Customizing for Financial Accounting (New), choose Asset Accounting

Valuation Depreciation Areas Define Depreciation Areas.

– Assign both depreciation areas to the same ledger group.

–The ledger group you assign them to is not allowed to contain the leading

ledger. –In the Posting in G/L field, choose Area Posts Depreciation Only.

Derived Depreciation Area:

–It is easiest to create the derived depreciation area using the Wizard.

–In Customizing for Financial Accounting (New), choose Asset Accounting

Valuation Depreciation Areas Set Up Areas for Parallel Valuation.

–In the Posting in G/L field, choose Area Posts APC Only. Specify that this

derived depreciation area represents the difference between the real

depreciation area for parallel accounting and the master depreciation area.

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GL w ith Asset Account ing : Depreciat ion

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

Dep.

Area

Name Posting Indicator Ledger

Group

1 Local accounting principle Online 0L

30 IFRS Depreciation only DS

60 Adjustment area 30-01 APC only DS

The depreciation run posts the depreciation for area 01 to the IAS

ledger and the depreciation for area 30 to the US GAAP ledger.




Setting up Parallel ValuationSAP Customizing IMG -----> Financial Accounting ( New ) ------> Asset

Accounting ------> Valuation ----->Depreciation Areas ------> Set up

Areas for Parallel Valuation




Setting up Parallel Valuation cotn…




Asset Balances in Master Depreciat ion A rea




Asset balances in Paral lel Depreciat ion Area




Asset Balances in Delta Depreciat ion Area




Period ic APC pos t ing in paral lel ledgers




Account Balances in Paral lel Ledgers




Asset Balance in Financ ial statements

Balances in Leading Ledger Balances in Non Leading Ledger




Asset Reti rement




Loss in Leading Ledger




Loss in Paral lel Ledger




Values posted in Delta Depreciat ion Area




Gain/Loss on disposal in Dif ferent Ledgers




Difference to the Class ic General Ledger

New Functions: – Online Document Breakdown

– Allocation

– Rollup

– Planning on characteristics combination

Functions not available in New General Ledger:

– Balance sheet and P&L adjustment (replaced by online document

breakdown function)

– Foreign currency valuation: Valuation with updating (BDIFF).(Replaced by the tech-nique of posting and reposting)




Difference to FI-SL

New Functions: – Activation of additional fields for totals reporting by activating standard

scenarios (functional area, segment, business area). Technicallysimpler implementation.

–Definition of other additional fields via expanded offer of standardfields.


–Transaction GB01

–Definition of transfer rules (not necessary anymore, because of automatic update of new totals table FAGLFLEXA).

–Rollup

• Hierarchy rollup• Rollup in ALE environment• Creating rollup line items




Dif ference to Class ic Prof i t Center Accoun t ing

New Functions: – Online Document Breakdown


–Transfer prices

–Statistical key figures

–Open item reports per profit center

–Periodical transfer of balance sheet items (replaced by online

document breakdown)



Parallel Ledgers: Chapter Summary

Understand need for parallel Accounting● Understand different solutions for parallel Accounting● Understand use of parallel Ledgers● Distinguish between Leading / Non-Leading Ledgers● Create and Activate of parallel ledgers

● Understanding the use of Ledger Group● Use of Document type of GL view● Use of Document number ranges for GL view● Parallel Accounting in Asset Accounting● Configuration of Delta Depreciation Area● Use Parallel Ledgers for Foreign Currency Valuation

● Difference to Classic General Ledger ● Differences to Special Purpose Ledger ● Differences to Classic Profit Center Accounting

Parallel_Ledger

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