SAP FI/CO New General Ledger accounting

mySAP ERP
ERP Central Component (ECC) 6.0 Version
New General Ledger Accounting Training Purpose

The purpose of the training is to impart detailed

functional overview and configuration steps in New
General Ledger accounting
New General Ledger Accounting - Agenda

Date: 02.12.2008 (2.00 pm to 5.00 pm)

Sl. No Topics
1 New GL Accounting - Overview
2 New GL Evolution, Architecture & Technical overview
3 New GL Activation concept
4 Real time integration of CO with FI
5 Document splitting concept
6 FI Level Planning
Date: 03.12.2008 (2.00 pm to 5.00 pm)
Sl. No Topics
1 Parallel ledger concept
2 Segmental reporting
3 FI Allocations
4 Changes in ECC 6.0 from earlier versions
5 Migration concept - an overview
New General Ledger Accounting - Foreword

The increased demands on general ledger accounting requires new architecture

concepts for todays business software. The following list contains some of the aspects
determining the range of functions required of modern, forward-looking general ledger
accounting:

Standardization of International accounting principles

Necessity of quicker period-end closing
Simultaneous implementation of company-specific and industry-specific reporting
requirements
Cost reduction
Increased Data transparency
Greater convergence between financial and management accounting

SAP set out to meet these requirements, and New General Ledger Accounting in
mySAP ERP is the result incorporating all of the above points.
New General Ledger Accounting - Advantages

Management
Segment Reporting
Reportin Extensibilit
g y

Legal Balanced Books

Entity in any
Reporting Dimension

Parallel
Complianc Accountin
e g

Transparenc Fast
y Close
Total Cost of
Ownership
Reduction
New General Ledger Accounting G/L in SAP R/3 Enterprise
and mySAP ERP

Multiple Applications SAP R/3 mySAP ERP: A Unified World

General Ledger in mySAP ERP
Classic GL CoGS General Ledger supports
Legal
Ledger Legal Requirements
Requirements
Mgmt. and Segment reporting
Extensibility by Industries
Profit Center Ledger
Management and Extensibility by Customers
Segment reporting
Balanced book by any dimension
Parallel sets of books
Special Ledger Fast Close
Multi-dimensional,
Customer-defined TCO reduction

Intl. Accounting Standards

Industry Specific Ledgers Compliance & Transparency

B/S by Grant, Fund, Title
mySAP ERP Evolution history
Evolution History of SAP R/3 to mySAP ERP:

SAP R/3 Release 4.0B Release Date June 1998

SAP R/3 Release 4.5B Release Date March 1999
SAP R/3 Release 4.6B Release Date Dec 1999
SAP R/3 Release 4.6C Release Date April 2001
SAP R/3 Enterprise Release 4.70 Release Date March- Dec 2003
mySAP ERP 2004 (ECC 5.0 version) 2003 to 2004
mySAP ERP 2005 (ECC 6.0 version) 2004 to 2005

A complete architecture change took place with the introduction of mySAP ERP edition in
2004. R/3 Enterprise was replaced with the introduction of ERP Central Component (SAP
ECC). The SAP Business Warehouse, SAP Strategic Enterprise Management and
Internet Transaction Server were also merged into SAP ECC, allowing users to run them
under one instance. Architectural changes were also made to support an enterprise
services architecture to transition customers to a services-oriented architecture.
mySAP ERP Architecture
mySAP ERP Architecture ECC 6.0 version
mySAP ERP Next Generation ERP Solution
mySAP ERP Architecture - Netweaver technology

- Netweaver is SAPs integrated technology platform and is the technical foundation for
all SAP applications. SAP NetWeavers release is considered as a strategic move by
SAP for driving enterprises to run their business on a single, integrated platform that
includes both application and technology.

- Netweaver is essentially the integrated stack of SAP technology products. The SAP
web application server is the run time environment for the SAP applications including
the mySAP Business Suite solutions (ERP, SRM, SCM, CRM and PLM)

- It is widely held that this approach is driven by Industrys need to lower IT costs
through an enterprise architecture that is at once
a) More Flexible,
b) Better integrated with applications
c) Built on open standards to ensure future interoperability and broad integration
mySAP ERP Architecture - mySAP Business Suite
mySAP ERP ECC 6.0 Technical Overview Fast
Facts
SAP R/3 Enterprise 4.7:
151,600 Tables & 75,000 Transaction codes (approx)

mySAP ERP ECC 6.0:

309,300 Tables & 105,000 Transaction codes (approx)

Three news tables added in new GL accounting namely:

FAGLFLEXT: It replaces table GLT0. With this table, many scenarios can be
portrayed. Definition of own customer fields can be possible.

FAGLFLEXA & FAGLFLEXP: General ledger oriented or ledger specific line items
for both actual and plan items. It contains additional information used in the entry view
in BSEG table.

BSEG-ADD: Used in particular in connection with the ledger approach to portray

parallel accounting.

***Plus, lots of BAPIs, BADIs and User Exits are added in ECC 6.0 version.
New GL Activation Concept
New GL Activation concept

Activation Details

a) Activation of New General Ledger accounting

b) Activate / Deactivate old customization paths

c) Update / Read from Classic General Ledger

d) Balance comparison Classic General Ledger with New General

Ledger (helpful during migration)
New General Ledger Activation Concept

Path: Customization -> Financial accounting -> Financial accounting global

settings -> Activate new GL accounting (Or) Transaction code: FAGL_ACTIVATION
New General Ledger Activation Concept

Notes:
a) The new general ledger is activated automatically in initial installations.

b) If existing customers want to use the new general ledger, they have to activate
it using a Customizing transaction or through FAGL_ACTIVATION.

c) The activation flag is set in each client.

d) Activating new general ledger will result in system-wide changes to the

application menu and screens and customizing paths
New GL accounting Menu path after activation

- The paths for the new general ledger accounting are in addition to the existing
Customizing paths.
- The conventional Financial Accounting paths will initially remain available in their
present form.
New GL Accounting Activate/Deactivate Old IMG

Program name: RFAGL_SWAP_IMG_OLD (in SE38 T.Code)

New GL Activation Update / Read from Classic
General ledger

Overview:
This section is applicable for clients who migrate from classic GL to New GL. By
Default, after activation of the new General ledger, the reports only read the
tables for the new general ledger accounting the Read from Classic general
ledger flag is not set.

In order to read the tables for classic general ledger accounting also (=> table
GLT0), select the checkbox Read Classic General ledger (GLT0). Path and
screenshot mentioned in the coming slides.

SAP Recommendation:
Any update of the Classic General Ledger tables should be deactivated after
running and verifying the first end-of-period closing, at the latest. If we update
the tables of both the conventional and the new general ledger, then too many
unneeded data records will be generated.
New GL Activation Update / Read from Classic General ledger

Path: Customization -> Financial accounting (New) -> Financial accounting

global settings (New) -> Tools -> Deactivate update of classic general ledger
(GLT0).
New GL Activation Update / Read from Classic General ledger
New General Ledger Classic with New General Ledger
Balance Comparison

Overview:
This step is required where update of both classic and new General ledger
is activated. This is mainly to compare the balances so as to check any data
inconsistency in classic and new General ledger.

Note: In contrast to CO, Data is often written to FI in version 001 only.

Path:
Customization -> Financial accounting (New) -> Financial accounting Global
settings (New) -> Tools -> Compare ledgers
Classic with New General Ledger Balance Comparison as an
Example
Real Time Integration of CO with FI
Real Time Integration of CO with FI

Activation details

a) Defining Variants for Real Time Integration and assign variants to

Company code

b) Real Time Integration Trace / Log an overview

c) Account determination for Real time integration with / without

substitution rule
Real Time Integration of CO with FI - Advantages
Overview:

The real time integration from financial accounting (FI) to controlling (CO) has been available
so far, but the opposite direction from CO to FI was not available in real time in earlier versions
and it requires reconciliation ledger postings to be run through transaction code KALC during
month end.

This month end procedure can be eliminated once we activate real time integration of CO with FI.
Real Time Integration of CO with FI Activation Path

Path: Customization -> Financial accounting (New) -> Ledgers -> Real time
integration of Controlling with Financial Accounting
Variants for Real Time Integration CO->FI
Variants for Real Time Integration CO->FI
It consists of:

a) The criteria for real-time integration mainly, cross-company code, cross-business area,
cross-functional area, cross-profit center and cross-segment etc.,
b) The activation date for the real time integration and assignment to Leading ledger 0L.
c) Setting up account determination for real time integration.

Real Time Integration CO->FI Trace / Log:

If necessary, the CO-FI real-time integration can be logged with a trace. If trace is active
during a CO posting, we can analyze the real-time integration data again at any time
including the following data:
a) The document number of the original CO document
b) Whether it was a transfer or a test run.
c) The document number of the follow-up document in FI if a transfer to FI took place.
d) The reason for transfer, but also the reason for a failed transfer.
d) The posting mode: online posting or subsequent transfer (subsequent posting / follow-up).
e) Posting date, posting time, and user.
f) Line item data for the documents: - All posted to objects and partner objects.

Note:

We can activate the trace in the real-time integration variant, it is then active for all users at all
times. We cannot deactivate it subsequently. As per SAP, that this may result in a significant
potentially undesired number of log entries.
Assignment of Real time Integration variant to
Company code
Trace log activation - T.code FAGLCOFITRACEADMIN

Note: If the trace is not activated in the real-time integration variant as above,
it can still be activated and deactivated user-specifically at any time using this
transaction code.
CO-FI Real Time integration - Example

Manual reposting of costs from one cost center to another cost center
Account Determination for Real Time Integration
Two options are available for Account determination, namely:

a) Account determination without substitution

b) Account determination with substitution

Both the steps are mainly used to trace and analyze postings in financial accounting by a
Designated value (Example: assigned GL account through account determination)

Option 1: Account determination without substitution:

This step is used to define the account determination for the real time integration of controlling
(CO) with financial accounting (FI) based on the below combinations:
GL Account for reconciliation postings (Example: GL account 6900000005)
GL Account for reconciliation postings along with CO Business transaction.
(Example: Business Transaction: RKU1 (repost costs) with GL account 6900000005)
GL Account for reconciliation postings along with CO Business transaction and CO Object
class
(Example: Business Transaction: RKU1 (repost costs), Object class: OCOST (Overheads)
with GL account 6900000005)

Option 2: Account determination with substitution Extended Account determination

Similar to FI substitution through OBBH transaction code; during real time integration of CO
with FI, this method replaces the original value in FI with the substituted value during
accounting document creation.
Account Determination without Substitution

Path: Customization -> Financial accounting (New) -> Financial accounting global
settings (New) -> Ledgers -> Real time Integration of Controlling with Financial
Accounting -> Account determination for real time integration -> Define account
determination for real time integration.
Account Determination without Substitution
Account determination without Substitution - Example

Example: Cost center reposting from Cost center N0011003 (Administration cost center)
to N0011002 (Services cost center) through cost element 6003002001 for INR 15,000. As
per the account determination, accounting document will be created using 6900000005
GL account and not through 6003002001 GL account.
Account determination with Substitution
Substitution rule - Example
Example: As per this substitution step, whenever there is any transfer posting in CO
using cost element 6003002002 which initiates real time integration with FI, during
accounting document creation, it will be replaced with the GL account 6900000004.
Account determination with substitution - Example
Example: Cost center reposting from Cost center N0011003 (Administration cost center)
to N0011002 (Services cost center) through cost element 6003002002 for INR 17,000. As
per the substitution method, accounting document will be created using 6900000004 GL
account.
Account Determination for primary cost element
Overview: This step determines whether Account determination takes place for
primary cost elements either with or without substitution method. The
reconciliation posting is made to the related GL account for primary cost
elements.

Note: If it is not ticked, during reversal of the CO document, accounting

document will be posted in FI only based on the original value and not based on
the designated value assigned through account determination procedures
mentioned in the previous slides.