“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
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
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
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
1212
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.
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
1515
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
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
2121
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
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