Leading ledger

1. Leading ledger

The leading ledger is based on the same accounting principle as that of the consolidated financial
statements.

If you use the account approach for parallel accounting, you post all data to the leading ledger.

This leading ledger is integrated with all subsidiary ledgers and is updated in all company codes. This
means that it is automatically assigned to all company codes.

In each company code, the leading ledger receives exactly the same settings that apply to that company
code: the currencies, the fiscal year variant, and the variant of the posting periods. You can define a second
and third parallel currency for your leading ledger for each company code. In Customizing for Financial
Accounting (New), choose Financial Accounting Global Settings (New) ® Ledgers ® Ledgers ® Define
Currencies of Leading Ledger.

Non-leading ledger

The non-leading ledgers are parallel ledgers to the leading ledger. They can be based on a local accounting
principle, for example. You have to activate a non-leading ledger for the individual company codes.

Posting procedures with subledger or G/L accounts managed on an open item basis always affect all
ledgers. This means that you cannot perform ledger-specific postings to subledger or G/L accounts
managed on an open item basis. If you manage G/L accounts on an open item basis to monitor accounting
aspects such as reserve allocations and reversals, you need to take additional measures in your internal
controls system.

Non-leading ledgers can have different fiscal year variants and different posting period variants per company
code to the leading ledger of this company code. The second and third currency of the non-leading ledger
must be a currency that is managed as second or third currency in the respective company code. However,
you do not have to have a second and third currency in the parallel ledgers; these are optional. Alternative
currencies are not possible.
Leading ledger
1.It is a base ledger, which updates the cost center and consolidation.
2.You can define only one ledger as the leading ledger 2013 SAP provides the
leading ledger “0L”.
3.The currency of the leading ledger is always used as the first currency.
4.The leading ledger is integrated with all subsidiary ledgers.
5.Only the values from the leading ledger are sent to CO.
6.The leading area in Asset Accounting (depreciation area 01) must be posted to
the leading ledger.
7.Leading ledger uses the (additional) local currencies assigned to the company

2. code.
8.Leading ledger uses the GL Total Table: FAGLFLEXT.
Non-leading ledger
1.Non-leading ledgers are activated by company code.
2.You can define additional currencies that deviate from those used by the
leading ledger.
3.As a second and third currency of a non-leading ledger, you may only use
currency types that you have already assigned to the relevant company code for
the leading ledger.
4.You can define a fiscal year variant that differs from the leading ledger. If you
don’t specify a FYV, the FYV of the company code is automatically used.
5.You can also define a posting period variant that differs from the leading ledger.
6.Separate document types and number ranges can be defined for non-leading
ledgers by users, to ensure continuity in ledger numbering.
7.Non-leading ledger updates the profit center, segment.
8.The non-leading ledgers are used as parallel ledger together with the leading
ledger. This can be used to apply different accounting standards, such as
IAS/IFRS or US-GAAP
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