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SAP Note 779251 - mySAP ERP New general ledger: Parallelaccounting

Note Language: English Version: 1 Validity: Valid Since 04.10.2004

Summary

SymptomThis note is designed to help when there is uncertainty about parallelaccounting in the new general ledger in mySAP ERP and to decide if it isachieved by means of additional accounts (Account solution) or by means ofadditional ledgers (Ledger solution).

Other termsnew general ledger, parallel accounting

Reason and PrerequisitesFor the information that follows, SAP makes certain assumptions. It isassumed, for example, that this analysis occurs for an organization whichneeds to report externally according to more thanone accepted accounting principle (GAAP) and which will use parallelaccounting via the General Ledger Accounting (and not in the consolidationmodule) and that the accounting principle relevant for the consolidatedfinancial statements in the organisation is the leading GAAP.Country-specific GAAPs are not considered here but in each individual case,however, they will also be relevant.

SolutionWith mySAP ERP parallel accounting can be achieved by one of two differentmethods: In the general ledger, you can maintain several parallel ledgers(General ledgers) to meet several accounting principles. In this case, thedata for the accounting principle relevant for the consolidated financialstatements should be maintained in the leading ledger of the generalledger. The system always treats parallel ledgers as complete ledgers inthis case, that is, all postings without valuation (GAAP) difference areposted into the leading and into the non-leading ledgers in the respectivecompany code. Valuation postings which are only valid for a specific GAAPshould be posted only into the dedicated ledger set up for that GAAP. Thismethod of accounting is called the ledger solution in the followingsections and should not be confused with the special ledger solution whichexisted up to now ina separate component to theGeneral Ledger. The ledger solution is integrated into the new generalledger of mySAP ERP. An alternative method of accounting for variousaccounting principles is the posting to specific G/L accounts called theaccount solution in the following sections. Postings without valuation GAAPdifferences occur on common accounts. The postings specific for therelevant alternative acocunting principles are subsequently posted tospecial accounts for these GAAPs. The external reporting displays allaccount balances of the respective accounting principle by means of thecorresponding account selection (common accounts + specific accounts). Inaddition to the above-mentioned prerequisites the following points can helpwith the decision regarding which method to implement.In this case, it has to be stressed that SAP generally considers theledger solution and the account solution as equal.

o The standard reporting is available to you for both solutions.

o The scenarion of the solution is recommended if

o your paralled accounting is likely to have many valuation

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SAP Note 779251 - mySAP ERP New general ledger: Parallelaccounting

differences

o the number of the G/L accounts would not be manageable anymore with

o the use of additional accounts.Advantages of the ledger solution are:

o You maintain a separate ledger for every accounting principle

o You can use different fiscal year variants in this scenario

o The number of G/L acocunts is manageableDisadvantages of the ledger solution are:

o The data volume increases due to the other ledgers.In particular, the account solution scenario is particularly attractive ifyou have worked with the account solution before, are familiar with it andthe number of the additionally required G/L accounts is acceptable for you.Note is release independent

Header Data

Release Status: Released for CustomerReleased on: 05.10.2004 11:33:28Master Language: GermanPriority: Recommendations/additional infoCategory: ConsultingPrimary Component: FI-GL General Ledger Accounting

The Note is release-independent

Related Notes

Number Short Text

1330451 SAP ERP: Changing leading reporting