Overview

CO to FI reconciliation is one of the significant process improvements in SAP new GL. Cross
company code postings in Controlling ledger is the main cause of difference between FI ledger and CO
ledger. If users post cross company code in CO ledger, the corresponding legal effect (i.e. cross
company billing and accounting) of this transaction does not reflect in FI. Previously, users had to
process a job at month end to allow the system to reconcile the differences and post corresponding
entries in FI ledger. With new GL, this reconciliation and posting of entry in FI ledger occurs real time. We
will use a cross company allocation example to examine how new GL reconciles CO Ledger with FI
Ledger.