Configuration Steps for the New GL in ECC 5.

Define Ledgers for the new GL

In General Ledger Accounting, you can use several ledgers in parallel. This allows you to
produce financial statements according to different accounting principles, for example. A
ledger uses several dimensions from the totals table it is based on. Each dimension of the
totals table represents a subset of the coding block. As was shown in the previous
document, you can also include customer fields in your ledgers.

The IMG location for configuration settings pertaining to ledgers:

When defining ledgers, one must be designated as the Leading Ledger. The leading
ledger is based on the same accounting principle as that of the consolidated financial
statements. It 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.
Ao definir livros, um deve ser designado como o Leading
Ledger. O principal livro é baseado no mesmo princípio que a
contabilização das demonstrações financeiras consolidadas. É
integrado com todos os livros e filial é atualizado em todos
os Códigos Companhia. Isto significa que é atribuído
automaticamente a todos os Códigos Companhia. Em cada
Empresa Código, a principal razão recebe exactamente as
mesmas definições que se aplicam à Companhia Código: as
moedas, o ano fiscal de variante, bem como a variante do
destacamento períodos.

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. 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

02 ECC 5.0 Config_Defining Parallel Ledgers.doc Page 1 of 21

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 non-leading ledger;
these are optional. Alternative currencies are not possible.
Non-Leading livros são livros paralelo à principal razão.
Elas podem ser baseadas em um princípio contábil local, por
exemplo. Você tem que ativar um livro não-liderança para o
indivíduo Empresa Códigos. Não levando livros podem ter o
ano fiscal de diferentes variantes e diferentes variantes
período destacamento por empresa código para o principal
razão desta empresa código. A segunda ea terceira moeda do
não-líder livro deve ser uma moeda que é gerida como segunda
ou terceira moeda nas respectivas Empresa Código. No
entanto, você não tem que ter uma segunda e terceira moeda
em razão da não-líder, que são opcionais. Alternativa moedas
não são possíveis.

02 ECC 5.0 Config_Defining Parallel Ledgers.doc Page 2 of 21

Upon entering ‘Define Ledgers for General Ledger Accounting’:

SAP delivers the configuration settings for one leading ledger – this is the minimum
requirement even if no business need for parallel ledgers is identified.

For illustrative purposes, 2 additional ledgers will be created. The leading ledger 0L will
be reserved, as per the documentation, for consolidated financial reporting.
Ledger L1 – will apply to US companies (GAAP)
Ledger L2 – will apply to German companies (HGB)

Note: you cannot assign ledgers with keys beginning with ‘0’ – not in the allowed
Customer name space.

02 ECC 5.0 Config_Defining Parallel Ledgers.doc Page 3 of 21

Clicking on Save produces one information message for each ledger added:

A ledger group is automatically created for each ledger – more on ledger groups later.
Acknowledging the messages saves the new ledgers.

Yes: Janessa

02 ECC 5.0 Config_Defining Parallel Ledgers.doc Page 4 of 21

Define Currencies of Leading Ledger

As mentioned above, the leading ledger applies to all Company Codes. The currency
settings from every Company Code (e.g. parallel currencies) automatically apply to this
ledger. As such, this menu path is simply an alternative entry point to company code
“Additional currency” configuration. Had this step already been completed, there would
be nothing new to do here:

In our example, the German company had been configured previously for an additional
group currency:

Therefore, the leading ledger will be denominated in both US dollars and Euros.

Define and Activate Non-Leading Ledgers

The additional ledgers were already “defined” previously. In this step, they are
“activated” through assign nment to FI Company Codes.

02 ECC 5.0 Config_Defining Parallel Ledgers.doc Page 5 of 21

Clicking on Execute will trigger a prompt for the non-leading ledger to be assigned.

Entering a value results in:

Click on New Entries and assign the appropriate Company Code:

02 ECC 5.0 Config_Defining Parallel Ledgers.doc Page 6 of 21

In this case, once the USA Company Code is entered, its currency settings default. It is
not possible to assign additional currencies in this case, as the Company Code is
denominated in a single currency (USD). Save the entry.

Repeating these steps for the German company (which has the additional currency
defined, as shown above):

The primary currency defaults in. Assuming that the need to report against this ledger in
group currency exists, it can be added in C2 by invoking the drop down:

Select this value and Save.

Note: as can be seen from the table, it is possible to define Fiscal Year Variants and
Posting Period Variants that differ from the Company Code settings in these ledgers.

Assign Scenarios and Customer Fields to Ledgers

02 ECC 5.0 Config_Defining Parallel Ledgers.doc Page 7 of 21

Customer Fields were discussed in the first document. What is a Scenario?

The scenario combines Customizing settings from different business views. Each
business view specifies which posting data is transferred from different application
components in General Ledger Accounting, such as cost center update or profit center
update. You assign the desired scenarios to your ledgers. For each ledger, you define
which fields are filled with posting data from other application components.

SAP delivers a number of scenarios in the standard system. It is not possible to create
additional scenarios. These scenarios can be viewed under this IMG path:

Financial Accounting Global Settings (New) ® Ledgers ® Fields ® Display Scenarios

for General Ledger Accounting

Highlighting an item and double clicking on the Scenario Fields folder will reveal what
will be updated, e.g. for Segment:

The scenario settings can be summarized as follows:

02 ECC 5.0 Config_Defining Parallel Ledgers.doc Page 8 of 21

Scenario Fields Filled Technical Field Name
Cost center update Cost center RCNTR
Sender cost center SCNTR
Preparation for consolidation Trading partner RASSC
Transaction type RMVCT
Business area Business area RBUSA
Trading partner business area SBUSA
Profit center update Profit center PRCTR
Partner profit center PPRCTR
Segmentation Profit center PRCTR
Segment SEGMENT
Partner segment PSEGMENT
Cost of sales accounting Functional area RFAREA
Partner functional area SFAREA

Entering the configuration menu path reveals the three ledgers:

Highlight each in turn then double click the Scenarios folder to begin the assignment:

Click on New Entries.

02 ECC 5.0 Config_Defining Parallel Ledgers.doc Page 9 of 21

Use the drop down help to make the appropriate assignments. Save and repeat for each
ledger.

If there is a need to transfer CO plan data from CCA or CO-PA to a ledger, a plan version
must be assigned by double clicking on the Versions tab and clicking on New Entries.

02 ECC 5.0 Config_Defining Parallel Ledgers.doc Page 10 of 21

Design point – the version specified here must match exactly with the one defined in CO
configuration.

Manual planning – activate to allow for manual planning against this ledger/version.
Integrated planning – activate to allow plan data to be transferred from CO.

In addition, the Integrated Planning indicator must be activated for that version in CO
(Controlling ® General Controlling ® Organization ® Maintain Versions ® General
Version Definition ® Controlling Area Settings ® Settings For Each Fiscal Year)

Activate Cost of Sales Accounting (if applicable)

As was seen above, one delivered scenario updated Cost of Sales accounting. However,
this setting will not fill the Functional area field unless Cost of Sales accounting is
activated in this step. Similar to segment reporting, the new GL supports Cost of sales

02 ECC 5.0 Config_Defining Parallel Ledgers.doc Page 11 of 21

accounting via functional areas across parallel ledgers. However, this functionality has
not been activated for our configuration example.

The required steps in Customizing for Financial Accounting (New), under Financial
Accounting Global Settings (New) would include:
...
1. Assign the scenario Cost of Sales Accounting to all ledgers in which you want to use it.
Choose Ledgers ® Ledgers ® Assign Scenarios and Customer Fields to Ledgers.
If you do not use parallel ledgers, assign the scenario Cost of Sales Accounting to
the leading ledger.

2. Define your functional areas:

Choose Ledgers ® Fields ® Standard Fields ® Functional Area for Cost of Sales
Accounting ® Define Functional Area.
3. Activate Cost of Sales Accounting on a preliminary basis.
Choose Ledgers ® Fields ® Standard Fields ® Functional Area for Cost of Sales
Accounting ® Activate Cost of Sales Accounting for Preparation.
This means that the Functional Area field is ready for input in the master data of
the objects, but the functional area is not yet derived during posting.
4. Add the functional area to the master data of the desired objects:
Choose Ledgers ® Fields ® Standard Fields ® Functional Area for Cost of Sales
Accounting ® Enter Functional Area.
5. You can also define a substitution for deriving the functional area.
Choose Tools ® Validation/Substitution ® Define and Activate Substitution for
Cost of Sales Accounting.
You should only define a substitution if you have additional requirements for
the derivation of the functional area. First check whether it would suffice to
add the functional area to the master data of the objects.

02 ECC 5.0 Config_Defining Parallel Ledgers.doc Page 12 of 21

6. Activate cost of sales accounting for your company codes.
Choose Ledgers ® Ledgers ® Activate Cost of Sales Accounting.
For cost of sales accounting to be portrayed, it must be active for the
company code and the corresponding ledgers.

Define Ledger Group

You can combine any number of ledgers into a ledger group. In this way, you simplify
the tasks in the individual functions and processes of General Ledger Accounting. For
example, you can make a posting simultaneously in several ledgers.
In some General Ledger Accounting functions, you can only specify a ledger group and
not individual ledgers. This explains why a ledger group was automatically created when
each ledger was created earlier.
Design point – You only need to create additional ledger groups when you want to
process multiple ledgers using the same function. If no ledger group is entered for a
function, processing is performed for all ledgers. Therefore, it is not necessary to
create a ledger group that contains all ledgers.

Entering the table:

Took this opportunity to provide a description to the SAP-delivered leading ledger group.
For illustrative purposes, a group comprising both non-leading ledgers will be created.

Click on New Entries.

02 ECC 5.0 Config_Defining Parallel Ledgers.doc Page 13 of 21

Enter a key and a description then double click on the Ledger assignment folder.

Click on New Entries.

Assign both ledgers to the group. One ledger must be designated as “Representative”.

What purpose does this serve? The system uses the representative ledger to determine
the posting period during posting and to check whether the posting period is open. The

02 ECC 5.0 Config_Defining Parallel Ledgers.doc Page 14 of 21

posting is then made to the assigned ledgers of the ledger group using the appropriate
fiscal year variant for each individual ledger.
Note: When the posting periods of the representative ledger are open, the postings are
made to all other assigned ledgers, even if their posting periods are closed.

Design points –
 If the leading ledger is part of the ledger group, it must be designated the
representative ledger
 If all ledgers have a different fiscal year variant to that of the Company Code, any
ledger can be the representative ledger. However, should one of the ledgers have the
same fiscal year variant as the that of the Company Code, this ledger must be
designated the representative ledger

Define Parallel Valuation Methods

One of the justifications for creating additional ledgers in the New GL is to support the
needs of parallel valuation. This enables you to perform valuations and closing
preparations for a company code according to the accounting principles of the group as
well as other accounting principles, such as local accounting principles. While SAP also
supports accomplishing this via additional GL accounts, they recommend using parallel
ledgers when the number of required accounts would be unmanageable. (The downside
of this approach: increased data volumes.)

IMG path:

Define the accounting principles by clicking on New Entries.

Enter a key and a description for each principle then save.

02 ECC 5.0 Config_Defining Parallel Ledgers.doc Page 15 of 21

Assign the new entries to ledger groups in the next IMG setting (New Entries):

Design point - an accounting principle can be assigned to only one ledger group!
In this example, the GAAP rules will be applied to all Company Codes (USA, Germany).
Therefore, the inability to assign the GAAP rules to the ledger associated with the US
Company Code (L1) is not an issue.

At this point, accounting principles have been tied to ledgers. The final prerequisite step
involves linking the principles to Valuation Areas. It is the valuation area that will be
referenced at various points in the FI application when valuations will be performed
differently, depending on the accounting principle (examples to follow).

IMG path:

Clicking on New Entries in the Valuation Areas table produces:

02 ECC 5.0 Config_Defining Parallel Ledgers.doc Page 16 of 21

Give the area a 2-digit key and select the appropriate Valuation method and Currency
settings.

Once the valuation areas have been defined, enter the next section of the IMG to assign
them to the accounting principles:

While detailed configuration settings have not been made here, this document will
explain where additional settings could be made should the need to configure parallel
accounting valuations be required:

02 ECC 5.0 Config_Defining Parallel Ledgers.doc Page 17 of 21

i) Reclassification and Sorting of Receivables and Payables

In each section, when defining account determination it is possible to do so by Valuation

Area. To access this functionality, when prompted for the Chart of Accounts:

Click here and enter the Valuation area in the ensuing pop up window:

02 ECC 5.0 Config_Defining Parallel Ledgers.doc Page 18 of 21

On the application side, this process can now be performed separately by each Valuation
area:

Accounting ® Financial Accounting ® Vendors ® Periodic Processing ® Closing ®

Regroup

Note: once the new GL has been activated, an error message is returned when attempting
to use the old transaction F101:

FAGLF101 - Lista ordenada/reclassificação (novo)

Upon entering the new transaction, the Valuation area is available as a selection criterion:

02 ECC 5.0 Config_Defining Parallel Ledgers.doc Page 19 of 21

ii) Foreign Currency Valuation

As above, when configuring the account determination in this area, it is now possible to
specify different Valuation Areas when prompted for a Chart of Accounts. A new
transaction exists on the application side which must be used once the new GL has been
activated:

FAGL_FC_VAL - Avaliação em moeda estrangeira das partidas em aberto (novo)

= F.05

02 ECC 5.0 Config_Defining Parallel Ledgers.doc Page 20 of 21

iii) Manual Accruals

When using parallel ledgers, it is possible to post an accrual entry directly to an

individual ledger via these new transactions (FB50L, FB01L):

Traditional transaction F-02 New GL Transaction FB01L

Group Grp = Ledger group

Reminder – if no Ledger group is specified, the system posts to all ledgers.

02 ECC 5.0 Config_Defining Parallel Ledgers.doc Page 21 of 21