364190757-1-SAP-FICO-New-GL-Accounting-Training-ppt.pdf

New G-L

1. SAP FI/CO – New General Ledger accounting
mySAP ERP
ERP Central Component (ECC) 6.0 Version

2. 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

3. New General Ledger Accounting - Agenda
Migration concept - an overview5
Changes in ECC 6.0 from earlier versions4
FI Allocations3
Segmental reporting2
Parallel ledger concept1
TopicsSl. No
03.12.2008 (2.00 pm to 5.00 pm)Date:
FI Level Planning 6
Document splitting concept5
Real time integration of CO with FI4
New GL Activation concept3
New GL – Evolution, Architecture & Technical overview2
New GL Accounting - Overview1
TopicsSl. No
02.12.2008 (2.00 pm to 5.00 pm)Date:

4. The increased demands on general ledger accounting requires new architecture
concepts for today’s 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 - Foreword

5. New General Ledger Accounting - Advantages
Segment
Reportin
g
Legal
Entity
Reporting
Management
Reporting
Complianc
e
Fast
Close
Extensibilit
y
Parallel
Accountin
g
Balanced Books
in any
Dimension
Transparenc
y
Total Cost of
Ownership
Reduction

6. New General Ledger Accounting – G/L in SAP R/3 Enterprise
and mySAP ERP
General Ledger in mySAP ERP
mySAP ERP: A Unified WorldMultiple Applications – SAP R/3
Profit Center Ledger
Management and
Segment reporting
Special Ledger
Multi-dimensional,
Customer-defined
Industry Specific Ledgers
B/S by Grant, Fund, Title …
CoGS
Ledger
Classic GL
Legal
Requirements
General Ledger supports
Legal Requirements
Mgmt. and Segment reporting
Extensibility by Industries
Extensibility by Customers
Balanced book by any dimension
Parallel sets of books
Fast Close
TCO reduction
Intl. Accounting Standards
Compliance & Transparency

7. 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.

8. mySAP ERP – Architecture

9. mySAP ERP Architecture – ECC 6.0 version

10. mySAP ERP – Next Generation ERP Solution

11. mySAP ERP Architecture - Netweaver technology
-Netweaver is SAP’s integrated technology platform and is the technical foundation for
all SAP applications. SAP NetWeaver’s 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 Industry’s 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

12. mySAP ERP Architecture - mySAP Business Suite

13. 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 BAPI’s, BADI’s and User Exits are added in ECC 6.0 version.

14. New GL Activation Concept

15. 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)

16. New General Ledger – Activation Concept
Path: Customization -> Financial accounting -> Financial accounting global
settings -> Activate new GL accounting (Or) Transaction code: FAGL_ACTIVATION

17. 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

18. 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.

19. New GL Accounting – Activate/Deactivate Old IMG
Program name: RFAGL_SWAP_IMG_OLD (in SE38 T.Code)

20. 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.

21. 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).

22. New GL Activation – Update / Read from Classic General ledger

23. 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

24. Classic with New General Ledger – Balance Comparison – as an
Example

25. Real Time Integration of CO with FI

26. 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

27. 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.

28. Real Time Integration of CO with FI – Activation Path
Path: Customization -> Financial accounting (New) -> Ledgers -> Real time
integration of Controlling with Financial Accounting

29. Variants for Real Time Integration CO->FI

30. 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.

31. Assignment of Real time Integration variant to
Company code

32. 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.

33. CO-FI Real Time integration - Example
Manual reposting of costs from one cost center to another cost center

34. 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.

35. 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.

36. Account Determination without Substitution

37. 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.

38. Account determination with Substitution

39. 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.

40. 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.

41. 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.