The SAP New GL in Overview-Guenter Dortmann

“The SAP New G/L in Overview”Dr. Guenter Dortmann

W t h C lti ChiWesternacher Consulting China

Contents

Sh W h I d iShort Westernacher Introduction

Key features of the new G/LKey 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

22

Key decision points

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Contents







Key decision points

55

Key decision points

Key features of the new G/Ly /

• Ledger approach (ledger groups)

• New transactions to post in particular ledgers

• New financial statement reports

FAGLFLEXTImproved Integration

Parallel Valuation

R lti CO/FI i t f

new G/L

• Additional Fields

• Segment, PC, FA

• Cost Center, etc.

• Realtime CO/FI interface (scenarios)

• Asset Accounting (incl. AuC)

MG/L• Customer Fields

• WBS element, Order

• Inventory Management

• Consolidation

Document SplittingS t f litti th d d l

6

• Set of splitting methods and rules

• Online split of follow up costs

• Zero-Balancing functionality

Totals Table FAGLFLEXTTotals Table FAGLFLEXT

One look at the database table makes the primary standard extension of the datap y

structure visible immediately:

7

FAGLFLEXT - Single Source of InformationFAGLFLEXT Single Source of Information

FAGLFLEXTBusiness Requirement

Functional AreaCost of Sales Accounting

Ledger GroupParallel Accounting

Functional Area

Segment

Cost of Sales Accounting

Business AreaBalanced Reporting

(Full Balance Sheet and P&L)Profit Center

Trading PartnerConsolidation

88

ScenariosScenarios

WWhat 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)during a posting (from other application components)

9

Entry view and G/L viewEntry view and G/L view

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

10

New FI drill-down reportingNew FI drill down reporting

Financial StatementAccount Balances Financial StatementAccount Balances

GL Vendor Customer Asset

S_PLO_86000028 (a/a) (new)

FGI3 (own reports)GL Vendor Customer Asset

S_PLO_86000030

FAGLB03 (new)

FK10N FD10N AW01N (Individual)

S_ALR_87011963 Drill-Down

Line Items/DocumentsS_ALR_87011970………

GL Vendor Customer Asset

FAGLL03 (new) FBL1N FBL5N AB03

FBL3N

FB03

FB03 FB03Drill-Down

1111

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Key decision points

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Key decision points

Multiple ledger approachMultiple ledger approach

0L

Leading Ledgerusing•Local Currency (10),

IFRS1…

•Fiscal Year Variant•Posting Variantof a CompanyCode New transactions

US GAAP4… 5…

N1New transactionsAvailable to capture postings in particular ledgers only

LOCAL

1…

4… 5…

N2

1…

4 5

New drill-down reportsto ensure financial 4… 5… statements for particular ledgers

1313

Multiple ledger approachMultiple ledger approach

SAP new G/L allows you to manage parallel ledgers according to different accounting y g p g g gprinciples 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 WBS elements orders others)the cost is updated on CO objects (Cost Centers, WBS elements, orders, others).

When CO writes back into FI (i.e. during AuC settlement, WIP settlement or due to CO

1414

cross-dimension cycles according to predefined scenarios) all ledgers are updated simultaneously.

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Key decision points

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Key decision points

P&L “Online“ Reconciliation

Profit &LossProfit &Loss

P&L Online Reconciliation

FIProfit &Loss(by CoS)

Profit &Loss(by Period)

Rent

Offi S l

200

200

Sales Rev

300

300 COS

OVH

Sales Rev

30

400 400+25

25Office Supply 200

Insurance 100 100

300 OVH

R&D+30

-30

-25

Cost Center

100 CO30

Cost Center

20040

40

Online Update on all dimensions according to predefined scenarios!

300 25 No transaction KALC!

16 CO Primary Cost Reposting (KB11N)FI Posting

CO Primary Cost Distribution (KSV5)

Production

Integration of subsidiary ledgersIntegration of subsidiary ledgers

0L N2 Balance sheetAssets

2…FI-AA

N1

Vendors

FI-APDebtors 4… 5…

FI-AR„Blank“ Ledger Group as a common

l ti h

Profit &LossCO

valuation approach

6… 7…

1717

Integration of Asset AccountingIntegration 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 PC0003 1 31 Vendor 110.000,00- EUR IS

2 70 Asset class 100 000 00 EUR IS SERV ADMIN2 70 Asset class 100.000,00 EUR IS SERV ADMIN3 40 Input tax (10%) 10.000,00 EUR IS

3% Cash discount:In many countries cash

R/3 4.6C:Usage of report SAPF181 at

discount reduces the acquisition and production costs of the asset.

Usage of report SAPF181 at end of month to adjust the acquisition and production costs

ERP 6 0:ERP 6.0: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 PC0003 1 50 Bank 106.700,00- EUR

18

0003 1 50 Bank 106.700,00 EUR2 75 Asset class 3.000,00- EUR IS SERV ADMIN3 25 Vendor 110.000,00 EUR4 50 Input tax (10%) 300,00- EUR IS

Integration of Asset Accounting

„Blank“ Ledger G

01 IFRS 20.000 EUR (1)40 Local 20 000 EUR (1)

Group as a common valuation approach

40 Local 20.000 EUR (1)

41 40-01 2.000 EUR40 Local 2.000 EUR

(1)

(3)IFRS (0L) AA

(3)Local (N1)

Transaction Acquisition Depreciation

Depr parLedger Group AA recon Acc dep AA recon Acc dep

Clearing Asset

Retirement

Gain from Asset

Retirement

Loss from Asset

Retirement

Retirement

Depr.par. Group AA recon Acc. dep. AA recon Acc.dep. Retirement Retirement RetirementDepr.Area 01 IFRS

straightline, 10 years 0L 20,000 -2,000 -20,000 2,000 17,800 -200 200

Depr.Area 40 Local

straightline, 5 years N1 22,000 -4,400 -22,000 4,400 17,800 200 -200

D A

1919

Depr. Area 41 (40 minus

01) N1 2,000 -2,400 -2,000 2,400 0 400 -400

Integration of Asset AccountingIntegration of Asset Accounting

Asset Accounting is based on different Depreciation Areas (eg 01 40) which are Asset Accounting is based on different Depreciation Areas (eg. 01, 40) which are assigned to different ledger groups (eg. 0L, N1 etc.) reflecting accounting principles (eg. IFRS, Local GAAP).

F h D i ti A th d i ti t ( lif ti d i ti th d For each Depreciation Area the depreciation terms (uselife time, depreciation method 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 th GAAP ill b t d i th D i ti Abetween the GAAPs will be portrayed in the Depreciation 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.

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

2020

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Key decision points

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Key decision points

Segment Reporting (Derivation Logic)

Profit Center Segment (Derivation)

Type 1CompanyADMINEach Cost Center

and WBS element links

(Derivation)g ( )

Type 2ypand WBS element links

to a Profit Center(and a Functional Area) ADM

Type 1

Type 2

Each Profit Centrelinks to a Segment

Functional AreaOVHCoS

22

(=P&L position)R&DProjects (Manual Input)Cost Ctr (Manual Input)

Segment Reporting (Derivation Logic)

Profit Center (Derivation) Segment (Derivation)

LOB 19850ADMIN

( ) g ( )

LOB 2Cost Center(Manual Input) ADMIN

TRUCK

BIKESCMP_TR

Each Profit Centrelinks to a SegmentRDHYBR

Each Cost Center“links” to a Profit Center Assignment

23Derivation

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

Document Splittinghas split the vendor payable and the GST li b dline based on a Splitting Method and Splitting Rules.

Document is enhanced with theenhanced with the corresponding balance sheet items automatically.

24

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

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

The offset postings hit a

fi dpreconfigured default Profit Center/Segmentclearing account.

25

clearing account.

Allocations in FIAllocations 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 water, etc.) from one profit center (such as the dummy PC) to another at the end of a period.

Profit center

Profit center

9999

1 Profit center

2Profit center

41XXXX 10,000

417XXX 35,000

42000 8,500

3 Profit center

4

26

,

Major Benefits of the new G/L

• Integrated statutory and management reporting

Enhanced Financial Reporting

p g

• BS and P&L on multiple dimensions

Accounting Principles and Parallel Accounting

Accelerated Closing

• Accounting principles• Closing cockpit

g p p• IFRS, US GAAP, local

• Integration of Asset Accounting

• Integration of Asset Accounting

• “Elemination” of CO

newG/L

Accounting

• Integration of current assets

• N G/L h

reconciliation ledger

• Consolidation

Cost of Sales Accounting• New G/L approach

• Special ledger

• Account model • Functional area as a standard field in FAGLFLEXT

27

standard field in FAGLFLEXT

• Integration CO and FI

• “realtime” P&L reconciliation

Key decision points of the new G/LKey decision points of the new G/L

• Leading (statutory) Ledger?

Multiple Ledger Approach

g ( y) g

• Additional Ledgers for Management Reporting?

FAGLFLEXT Improved Integration• Additional Fields • Which dimensions update FI

newG/L

• Segment, PC, FA

• Cost Center, etc.

• Customer Fields

totals table?

• Asset Accounting (incl. AuC)

• Inventory ManagementCustomer Fields

• WBS element, Order

y g

• Consolidation

Document Splitting• Zero Balancing in which dimensions?

(S ? P fi C ? El ?)

28

(Segment? Profit Center? Else?)

• Relevant Fields must be ready for input

• Design must be complete

Thank you…

2922 May, 2009 Author, Company

Appendix

30

Integration of Asset AccountingN2N2

Integration of Asset Accounting

Leading Ledger N1N1

IFRS

0L

FI

IFRS

0L

g g(0L) updates CO

IFRSWages

Material

200

Oth S 250

300

IFRSAuC

Current

650

Bank/Cash100

300

CO

Oth. Serv. 250

Capitalisation versions linked to d i ti

200

depreciation areas

Definition of percentage rates per

300

100

250

percentage rates per capitalisation version differentiated by cost element

31Cost CenterCO Primary Cost Reposting (KB11N)FI Posting

CO Settlement (CJ88)

Production

Westernacher China – 4 Main focus areasareas

Westernacher

LocalizationBusiness

Process

China

SAP

ERP

For China

And

R ll t

Process

Engineering

Finance

SAP

EWMERP Rollout

projectsHCM

Logistics

SPM

321st Tier Partner of SAP for EWM and SPM in China