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.

CO FI Ledger Reconciliation
When allocations are made within Controlling, they might post to two cost objects or two cost centres that belong
to different company codes. In legal terms, one company code has charged cost to another company code. Since
this allocation occurs in Controlling, the legal impact of cross company allocation is required to be reflected
in FINANCIAL Accounting.


Cross company code allocation in Controlling

With previous versions of SAP, business users are required to execute a period end job to reflect this posting
in FINANCIAL Accounting.
With new GL, SAP posts documents in FINANCIAL Accounting simultaneously with the cross company
allocation posting in Controlling. The obvious advantage of this is faster period end close because users do not
have to execute the period end job to reconcile the ledgers. New GL ensures integrity of data between the two
ledgers is maintained throughout.

CO FI Reconciliation postings in FI Ledgers
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.